TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Wal-Mart's India stores on hold

By The Associated Press
Thursday, Oct. 10, 2013, 12:01 a.m.
 

Wal-Mart Stores said Wednesday that it is splitting from its Indian business partner and cannot move forward with plans for its own retail stores in India because strict government regulations on sourcing from local small businesses make it impossible.

The announcement is a blow to Wal-Mart's expansion plans in India as well as the country's attempts to attract foreign investment in the huge but underdeveloped retail sector. Wal-Mart already runs a wholesaling joint venture in India and will continue that business, buying out partner Bharti Enterprises.

Wal-Mart did not name any other Indian partner — which would be necessary to open its own retail outlets.

Despite a potential market of 1.2 billion people, no large foreign chains have formally applied to open supermarkets and other multibrand stores in India since the government changed the law last year to allow them to invest more in the $400 billion sector previously reserved mostly for Indian companies.

The new law allows international companies to open multibrand retail stores with 51 percent ownership and an Indian minority partner. Foreign companies can operate 100 percent-owned wholesale chains.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Cash stash bolsters U.S. Steel
  2. Western Pennsylvania hospital profits improving
  3. Gas production from Marcellus shale sets record despite fewer new wells going online
  4. Kennametal’s CEO to retire at yearend
  5. Sprint cancels Framily, rolls out new data pricing plan
  6. Auto sales increase along with subprime loans
  7. Feds eye online lending practices
  8. Former Microsoft CEO Ballmer exits board of directors
  9. ‘Shark Tank’ investor shares lessons with fledgling entrepreneurs
  10. Dick’s beats expectations, but golf sinks profits
  11. HTC to construct Windows version of flagship phone
Subscribe today! Click here for our subscription offers.