Walmart and Tata Group will soon partner that involves the cash-and-carry stores. This partnership might help Walmart extend its services to the Kirana stores. Back in May 2018, it had acquired a 77& stake in Flipkart for $16 billion.
The US retail giant currently operates 26 cash-and-carry stores in India, which comes under the ‘Best Price’ brand name. The company also has three fulfillment centers in Indian cities – Mumbai, Lucknow, and Hyderabad.
Quoting a source, “This partnership will aim to expand Walmart’s reach to kiranas, upgrade them and then utilize the network for the fulfillment of food and grocery orders for Flipkart.”
A report said that Walmart is looking for a partner in India who is ‘respected’ and ‘has a voice in policymaking.’ It also wants to focus its attention on Flipkart while ignoring the supermarkets and hypermarkets.
This deal might also give a push to Walmart against Amazon, which has its offline presence through acquisitions. Amazon has acquired stakes in grocery chain More and department store Shoppers Stop. and is in advanced talks to pick up 10% in Kishore Biyani’s Future Retail.
The retail giant entered India in 2007 through a joint venture with Bharti Enterprises. It then acquired a 77% stake in Flipkart for $16 billion.
A Walmart spokesperson said, “As a policy, we don’t comment on market speculation.” Reports further suggest that Tata Group and Tata Sons CFO Saurabh Agrawal will head the negotiations while a team from the Tatas has already visited the US and begun negotiations with Walmart’s senior management. Details related to transactions are yet to be finalized.