Wal-Mart Stores is set to open its first cash-and-carry centre in India next week, just days after the Congress-led coalition won a general election and vowed to carry forward economic reforms.
Bharti Wal-Mart, the joint venture between India’s Bharti Enterprises and Wal-Mart, will open its first centre in Amritsar in the northern Punjab state.“It will be opened early next week,” said Arun Mowar, spokesman for Wal-Mart in India. The entry of multinational retailers such as Wal-Mart in India has been mired in controversy, with moves to open the sector up to more foreign investment opposed by the previous government’s former leftist allies and small traders.
Best Price Modern Wholesale, the name of the store, will be the first of between 10 and 15 planned wholesale facilities in India that will measure about 50,000- 100,000 sq ft each, and employ about 5,000 people over the next seven years, as per a 2007 joint venture agreement.
India’s fragmented and tightly-controlled $350 billion retail industry is forecast to nearly double in size by 2015.
Wal-Mart’s Indian venture has been delayed after fierce opposition from small traders. Under the previous Congress government many foreign investment projects were criticised by its communist allies. After Congress’s sweeping election win on Saturday, its leftist allies suffered major losses, effectively robbing the left of influence in the new government. Foreign multi-brand retailers are at present limited to wholesale or licence and franchise operations in India, with such global names as Metro, Tesco and M&S already present.
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