Global retailer Wal-Mart sets up new company in India

Tags: Wal-Mart, Retail
Global retail giant Wal-Mart has registered a new company in India as it prepares to enter the country's lucrative multi-brand retail market with a new partner.

The American retail major and Bharti Enterprises decided to part ways in October last year, bringing an end to their six-year long partnership.

The retailer has registered a new company called 'Wal-Mart India Private Ltd' in the country, according to the data available with the Ministry of Corporate Affairs.

According to the information, the new entity was registered on January 15, 2014.

After parting ways with Bharti group in October last year, Wal-Mart had said it was studying the feasibility of India's FDI policy in multi-brand retail before finalising plans to enter the segment.

The retailer and Bharti Enterprises had last year decided to independently own and operate separate business formats in the country. Wal-Mart is looking for a partner in India.

In December 2013, Wal-Mart received the green signal from the Competition Commission of India (CCI) to purchase Bharti group's almost 50% stake in their Indian joint venture for wholesale stores business.

The joint venture -- Bharti Wal-Mart Private Ltd -- was set up to operate wholesale stores under the Best Price Modern Wholesale brand. It was not catering directly to retail consumers in the country.

Wal-Mart has been lobbying with American lawmakers since 2008 for facilitating its entry into the Indian market, according to lobbying disclosure reports filed by the company in the US.

A probe, ordered by the Indian government in December 2012, into lobbying activities undertaken by Walmart to enter Indian retail market remained inconclusive.

The one-man inquiry panel, in its report tabled in the Rajya Sabha last month, could not "conclude in the absence of any material evidence available on record up till now, that Walmart indulged in any lobbying/bribery to Indian officials".

Lobbying is a legal activity in the US, but all the companies and their registered lobbyists need to file quarterly disclosure reports with the Senate and the House of Representatives.

In its Action Taken Report on Walmart probe, the government had said it would initiate fresh action against Walmart if an ongoing 'foreign corrupt practices' probe by US authorities reveals any violation in India by the retail giant.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • This is right time for retail investors to enter the debt market

    Quite often, retail investors are ridiculed for entering the equities market in droves, signalling the first signs of a bubble on the Street.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Rajgopal Nidamboor

Focus to keep your daily qualms at bay

Philosophers and scientists have, for long, compared the human brain ...

Gautam Gupta

What we can learn from the French fashion scene

It was a pleasure and a treat to experience one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture