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Wal-Mart is moving in, hire by local hire

After Australian retailer Woolworths’ smart entry to India, the $285 bn American retail giant is looking to make early inroads.

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MUMBAI: After Australian retailer Woolworths’ smart entry to India, the $285 billion American retail giant Wal-Mart is looking to make some early inroads.

Woolworths gained entry by setting up a subsidiary in India for exclusive supply to Croma, the new consumer durables chain from the Tata group, under the wholesale operations route.

Current government policy restricts foreign retail players from floating fully owned retail businesses in India. But FDI is allowed in single-brand retail stores, franchise set-ups and wholesale operations. The Woolworths-Tata deal thus deftly utilises the regulations.

Wal-Mart is believed to be appointing a legal head for India’s operations to look at policy hurdles and find the best possible way out. Besides, the appointment of head for administration to look after the issues of setting up operations is also believed to happen soon.

Raj Jain, president-emerging markets, Asia-Pacific, Wal-Mart is currently in India to recruit the first layer of managers for company’s India operations.

Names of current and former executives of Whirlpool India and a clutch of others from a New Delhi-based media house are doing the rounds. They are expected to form the first layer of Wal-Mart’s India operation.

DNA Money reported way back on May 12 the appointment of Raj Jain as president emerging markets, Asia-Pacific, excluding China, Japan and Korea.

Jain joined the company in the month of August after serving his notice period with Whirlpool Asia as its regional head marketing. Jain is based in Shanghai.

The company has already opened a liaison office in south Delhi to start the operations.  “India is the first priority in the emerging markets,” Elizabeth Dech Keck, director, international corporate affairs of Wal-Mart, had told DNA Money earlier.

But not everyone thinks Wal-Mart’s here any time soon.  “It would take a minimum of 15 months for Wal-Mart to start operations in India as its business model is still not clear,” said Arvind K Singhal, chairman, Technopak, the consultancy.

Wal-Mart is believed to be looking for the right partner in the country for its retail operations. Besides, its wholesale model of operation — called Sam’s Club — is one of the possible access routes.

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