INDIA > Walmart Shows Interest in India’s Food Processing Sector following FDI Policy Liberalization

 

According to  Food Processing Secretary in India, US-based Walmart is keen to invest in India’s Food Processing Sector. Currently, Walmart is present in the country in cash-and-carry retail format. Cash-and-carry retail stores differ from regular stores such that cash-and-carry customers are retailers and professional buyers and not end customers. Hotels, traders, businesses, caterers, and other registered entities are the target customers of such cash-and-carry stores.

The recently announced FDI policy changes in which foreign companies would be allowed to cater directly to end customers is the likely cause for this potential strategic change. In June, the government had started allowing 100 percent FDI in trading of food products manufactured in India. There is no further indication yet as to how exactly Walmart will conceptualize the new business model, but there are speculations that they will likely follow a “step-wise” approach such that both their “food business” and “non-food business” would be streamlined.