Walmart : Final FDI policy to decide entry into multi-brand

US retail giant Wal-Mart Stores Inc today said its entry into India's multi-brand retail would depend on the FDI policy and the conditions required for getting into the segment.

The company, which operates a 50:50 joint venture with Bharti Enterprises for wholesale cash-and-carry and back-end supply chain management operations in India, is currently watching developments regarding allowing of foreign direct investments (FDI) in multi-brand retail.

"It all depends on when the FDI is allowed and how it is allowed,"Walmart India President Raj Jain told media when asked if Walmart would re-consider its current business model in India if the FDI in multi-brand retail is allowed.

Recently, a Committee of Secretaries (CoS) had proposed allowing up to 51 per cent FDI in the politically sensitive multi-brand retail segment with a rider that a minimum of USD 100 million investment should be made.

Moreover, the CoS had also recommended that 50 per cent of FDI component would have to be deployed in the back-end infrastructure, like warehousing and cold storage.

The existing policy allows 51 per cent FDI in single brand retail and 100 per cent in wholesale cash-and-carry but none in multi-brand.

Jain said Walmart is happy with its current partnership with Bharti.

The Bharti-Walmart joint venture currently operates seven cash and carry stores under the'Best Price Modern Wholesale'brand. It also supplies to the retail stores operated by Bharti Retail.