WalMart eyes India

BANGALORE: Wal-Mart Stores Inc., the USD 288-billion global retail giant, is exploring the possibility of setting shop in India to cash-in on the consumer boom.

With the Indian government mulling foreign direct investment (FDI) of 26-49 percent in the retail industry, Wal-Mart international president John B Menzer is scheduled to call on Commerce and Industry Minister Kamal Nath and other top officials in Delhi on Thursday for a firsthand account of the country's policy in the retail sector.

On the eve of his Delhi visit, Menzer arrived here on Wednesday and held discussions with the company's Indian employees on the outsourcing business being operated from its global procurement office in Bangalore.

"Menzer is on a private visit to Bangalore.

His official engagements are scheduled in Delhi on Thursday.

He may brief the media on the company's India plans after buttessing the retail prospects in the sub-continent," a company official said.

The world's largest retail chain sources apparel, home textiles and accessories from India through its global procurement office in Bangalore.

Menzer also held meetings with some of the company's Indian suppliers during the daylong visit.

Company officials, however, declined to comment whether Wal-Mart was in talks with Indian corporates for setting up a joint venture in the retail segment.

"Everything depends on the government's policies.

Menzer is here on an exploratory visit.

While outsourcing of products and services from India will continue and expand, it is bit early to say anything about our entry into the Indian retail market," the official said.

Though political pressure has kept the government from opening up retailing to FDI, the finance and commerce ministries have been trying to bring about a consensus in the ruling United Progressive Alliance for allowing global retail majors with a cap on their investment limits.

According to media reports, Britain's Marks & Spencer group, Dairy Farm International Holdings Ltd of Hong Kong and Dubai based Lifestyle International have operations in India through franchises and joint ventures, while Germany's Metro and South Africa's Shoprite Holdings are into the wholesale segment.

The vast majority of Indian retailing takes place in small shops and makeshift bazaars.

Organized retailing only makes up about three percent or USD 6.4 billion, of the overall industry, but its share is forecast to grow to 8-10 percent in the next five years.