Walmart has said that it is studying the feasibility of Indias FDI policy in multi-brand retail before finalising plans to enter the segment,as the norms played a part in its break-up with Bharti Enterprises.
We continue to study the feasibility of the new FDI policy … we continue to monitor the environment for FDI in MBR (multi-brand retail), Walmart India spokesperson said when asked about Walmarts plans for the multi-brand retail sector in India. Stating that Walmart plans to continue growing the cash and carry business,the spokesperson said,the company will work with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.
On the role played by the current policy in the companys break-up with Bharti,she said: Under the requirements contained in the new FDI policy,Walmart could not invest in multi-brand retail through the existing Bharti Retail business. Last week,Walmart and Bharti Enterprises announced that they were parting ways to operate independently in India,ending their six-year-old partnership. The US retailer agreed to buy out its Indian partner in their cash-and-carry venture Bharti Walmart.