JOIN USThe company may have exited the business to consumer (B2C) segment in India, but Walmart India is still open to the option of re-entering it according to its chief executive officer, Krish Iyer.
“We continue to study the foreign direct investment (FDI) policy on retail. India is a large and attractive market and so we need to study it in detail before looking at anything,” Krish Iyer told Deccan Herald on the sidelines of the India Retail Forum 2015.
When asked specifically about their re-entry into the B2C (cash and carry) segment, Iyer declined to comment. Walmart had entered the B2C segment in India through a partnership with Bharti Retail (BRL) by opening its first store named Easyday in April 2008. However, on May 4, 2015, the business was merged into the Future Group creating one of India's biggest retail chains. Bharti Retail has a 10 per cent stake in the combined entity, which would eventually increase to 14-15 per cent.
As per the merger scheme, the combined company would have two entities. One, a front-end company which would retain the name Future Retail and would have 570 stores and a presence in multiple retail formats across 243 cities. This includes the 203 EasyDay stores which would retain their identity. The second would be the back-end, investments and infrastructure company to be listed separately as Future Enterprises.
According to Iyer, the company is also looking to grow its presence in the B2B segment. “We plan to add another 50 stores over the next five years and our target is to have 70 stores across the country by 2020,” Iyer said, without specifying the investments that would be involved for the expansion.
“We are satisfied with the growth in the country so far, and hope to continue the momentum going forward,” Iyer added. The company currently has 21 stores spread across 19 cities. Bharti had entered the B2B segment through an equal joint venture with US-based Walmart in 2007 through Best Price stores.
The $486-billion Walmart is the world’s largest corporation and tops the Fortune 500 list. It is also the world's biggest retailer.