Multinational retail giant Walmart is planning to increase sourcing from India to strengthen its global business. Walmart, which has a 50:50 joint venture with Bharti Enterprises in the wholesale cash-and-carry segment in India, believes that the country has immense potential to become an export hub for its global operations.
Walmart Asia President and CEO Scott Price told FE: ?Our global sourcing division has been restructured, and exports from India could increase to hundreds of millions of dollars in four to five years.? Price was in Zirakpur in Punjab to launch the JV?s second cash-and-carry store.
Talking about the country?s potential, he said: ?We already have a major sourcing business in India, including goods worth $125 million a year from Punjab. Products from India can be exported to other Asian countries, Europe and even the US,? he pointed out. Raj Jain, MD&CEO, Bharti-Walmart added: ?We can look at exporting agri-products from Punjab. We have launched our Direct Farm Program here. If it is really successful, export opportunities will be considered.?
Direct Farm Program is a partnership with 110 small and marginal farmers near Ludhiana. ?We encourage cultivation of safe, high-quality, seasonal vegetables. Field agronomists visit farmers at every stage of cultivation and advise them on nursery management, transplanting, nutrient management, as well as harvest and post-harvest practices,? Jain stated. In 2010, Bharti-Walmart plans to launch seven Best Price Modern Wholesale Cash-And-Carry stores across India, measuring up to 100,000 sq ft. Each store will involve an expenditure of $6-7 million.