May 10, 2018 1:45:12 am
Since its entry into the Indian retail space in 2007 and starting operations in 2009, Walmart India did not make any profit in the seven years till 2016. The company, however, has over the last two years managed to trim down its losses significantly after going solo in 2014 and becoming a wholly-owned arm of Walmart Inc.
Walmart India had accumulated losses worth Rs 1,874 crore in the period between December 2009 and March 2016. The company entered India in 2007 via a joint venture with Bharti Enterprises.
Financials filed with the Registrar of Companies, however reveal that while the losses rose in the period between December, 2009 (Rs 151 crore) to December, 2013 (Rs 532 crore), the company managed to reduce its losses in the following two years. From a loss of Rs 532.7 crore registered in the year ended December, 2013, the company’s loss came down to Rs 232 crore in December, 2014 and then to Rs 140.4 crore in the 15-month period ended March, 2016. The trimming down of losses coincided with Walmart India becoming a wholly-owned subsidiary of Walmart Inc in 2014 after Bharti made an exit.
As per the financials for the year ended March 2016, the firm had a turnover of nearly Rs 4,000 crore. When it started in 2009, turnover stood at Rs 198 crore. It rose to Rs 4,384 crore in the year ended December, 2013. Walmart India today owns and operates 21 omni-channel Cash and Carry stores under the Best Price brand name in nine states.
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