Click to play videoMumbai: The world's biggest retailer is betting bigger on India. After sourcing products worth $600 million in 2006, comprising largely of apparel, jewellery and textiles, Wal-mart is scaling up. This year it is adding electronics, leather accessories and footwear to its portfolio of products being sourced from India to be sold through 7,000 stores globally.
“Some of the new initiatives we are taking are more and more penetration in footware and electronics. We see that as a growing opportunity from India. We are exploring our opportunities there so if there were merit and it is established that electronics is an opportunity at least five or six vendors add up in the category,” says General Manager, Wal-Mart Global Outsourcing India, Rajnish Kapur.
Wal-Mart is also expanding its presence with two new offices planned in Mumbai and Delhi. The move is aimed at penetrating deeper into smaller towns and cities for procurement.
“We have been going to smaller towns in India aggressively for sourcing so we are setting up offices closer to the bases - in Delhi and Mumbai. We see huge growth opportunities in small towns and the idea to go to a small town is inclusive growth,” says Kapur.
In the six years since it began sourcing from India, Wal-Mart has even focussed on cottage industries. In some cases, exports to Wal-Mart account for over 50 per cent of the Indian company's turnover. Wal-Mart's decision to enhance its procurement is therefore good news for Indian companies.
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