Walmart is the worlds largest corporation and it is one among the biggest private employer of

America. Walmart retail store was established in the year 1962 by Sam Walton Wal-Mart also has
doing international operation in United Kingdom, Mexico, Canada and many countries throughout
the world.
Walmart entered Indias tightly controlled retail market with the sole ability to sell to wholesalers;
India protects small retailers from large groups like Walmart. Walmart entered into the partnership
with Bharti in hopes of achieving a liberalization of the Indian market. This hope was not fulfilled and
as a result the relationship with Bharti was no longer desirable
This action is similar to what happened in to Walmart in Germany. There Walmart stores were
competing with entrenched local general merchandise and food merchants, rendering Walmart
unprofitable. The company was restricted from running sales except for certain times, and the
operation never appealed to the German shopper.
Thus after a seven-year partnership, Walmart and Indian retail partner Bharti Enterprises last month
issued a terse joint message which said that they were ending the 50/50 joint venture launched by
the two firms in 2006 and had reached an agreement to independently own their business interests
in India.
Walmart will acquire Bhartis stake in the 50/50 Bharti-Walmart joint venture, which is a cash-and-
carry business-to-business operation under the Best Price marquee. India has allowed 100% foreign
direct investment (FDI) in the cash-and-carry segment since 2006.
In a change to its strategy in India, Wal-Mart announced it will add wholesale stores catering to small
businesses. It will also launch e-commerce business in the country. Over the next four to five years,
Wal-Mart will add an additional 40 to 50 wholesale stores to the 20 that are already in India. The e-
commerce business will start slowly, with one wholesale store offering online sales this summer.
The wholesale business will be cash-and-carry, meaning customers must take goods from the stores
themselves, but Wal-Mart said it will offer merchandise delivery for destinations as far away as 40
kilometers.
Its a departure from Wal-Marts previous plan to open retail stores in India. Indian regulations
require foreign retailers to have 30% of its inventory come from local small businesses. Restrictions
on wholesale businesses are looser.
The issues faced by Walmart in the clauses of the entry are-
A contentious clause says that multi-brand foreign retailers must source at least 30% of their
products from small industries. This may be possible in textiles and handicrafts, but what about
electronics?
The second problematic clause relates to investment. The policy states that 50% of investment must
be in back-end infrastructure. The clarifications issued by the Department of Industrial Policy and
Promotion state that this must be entirely for green-field assets, meaning Walmarts investments in
India thus far do not count toward meeting that mandate.

References
Arrindell, D. (2014, April 08). Wal-Mart changes strategy in India. Retrieved aPRIL 28, 2014, from
Yahoo Finance: http://finance.yahoo.com/blogs/hot-stock-minute/wal-mart-changes-strategy-in-
india-153614483.html
Loeb, W. (2013, October 16). Walmart: What Happened In India? Retrieved April 28, 2014, from
Forbes: http://www.forbes.com/sites/walterloeb/2013/10/16/walmart-what-happened-in-india/