Wal-Mart seeks RBI nod to open Research & Business Dev Office
02 Feb '06
2 min read
Leading retailer of the world, Wal-Mart has taken the next few steps to enter Indian retail sector by getting its research and business development office opened in Bangalore.
It has applied for necessary sanctions to the Reserve Bank of India (RBI) couple of weeks back that may possibly follow up with larger penetration in to India.
US $250 billion plus Wal-Mart Inc, already has an office in Bangalore, which sources products from India and South East Asian countries that include branded apparel, textiles, fabrics, fashion wear, toys, intimates, denim jeans, ready wear, home furnishings, besides household and domestic goods, and utilities.
Its current sourcing from India is estimated at more that one billion US dollars.
Recent announcement of single brand retailing that will enjoy 51 percent Foreign Direct Investments (FDI) clearly indicates Indian Government's willingness to open up the FDI inflow to the sector.
Wal-Mart plans to gain knowledge and information about Indian consumer traits, by planning to establish this research and business development office.
It is pertinent to recall that Wal-Mart President and CEO, John B Menzer had visited India in May, last year. He then met Commerce Minister Kamal Nath and several top Government officials that raised speculations of this retail giant's entry in the Indian markets.
Not much is heard about Wal-Mart's strategic retail entry in to India, but media reports suggest Wal-Mart may go for Sam's Club - a cash & carry wholesale trading format.
marketing@alchempro.com
