Global retail giant Walmart is continuing its push into India, announcing plans to open up to 20 megastore wholesale outlets with joint partner Bharti Enterprises.
The venture between the two companies currently operates four Best Price wholesale stores in Punjab state and one in both Rajasthan and Madhya Pradesh.
According to a report by AFP, Bharti Walmart chief executive Raj Jain said the company planned to open eight to 10 stores in 2011 and the same number the following year.
It has been a hard graft for international retailers to gain a presence in India, where 95 per cent of retail in the country is conducted through independently owned stores.
The independent retail sector has actively opposed Foreign Direct Investment (FDI) in the country and currently 100 per cent FDI is only allowed in wholesale operations.
Mr Jain said the joint venture would only become profitable once it had built up a significant presence in the country.
“In discount retail you need to build massive scale before becoming profitable,” he said.
“It can take several years. Our focus in India right now is to build scale. Profitability will not come in the short term, but in the medium to long term.”
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