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Wednesday, April 14, 2010

India critical for global growth: Wal-Mart - The Times of India

India critical for global growth: Wal-Mart - The Times of India

CHANDIGARH: Currently working in three big economies of the world — India, China and Japan — US retail giant Wal-Mart is also keeping a close watch on South East Asia for expansion. Keen to maintain its position as a major retailer, Scott Price, president and CEO of Wal-Mart Asia said, ‘‘We will capture 10 to 15 markets in Asia in ten years. At present, expansion plans for India alone is the full time job for us."

Price said it would be wrong to compare India and China, but India has a lot of potential as it has availability of highly educated workforce. "The retail giant would also like to increase sourcing from India for their stores all over the world," he said.

"The government should take care of issues related to FDI, GST and providing infrastructure support. Wal-Mart will keep persisting because its efforts in India is critical to its global growth strategy. Confronted with saturated markets in US and other developed countries, the company needs to establish a bigger presence in emerging markets like India, where modern stores make up just 5% of the country's retail industry," Price added.

Establishing good relations with farmers is the centrepiece of the company's plans. Wal-Mart, which working in a JV with Bharti group in India, is also moving towards contract farming in India, starting with their direct farm initiative, Price said. At present, the JV has tied up 110 farmers at Malerkotla which would be expanded, as they want to reduce the net food miles, the CEO said.


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