Wal-Mart Making New Moves In India

After breaking off its partnership with Bharti Enterprises last year, Wal-Mart now says it will open 50 new wholesale outlet centers in India in the next five years. The Bentonville-based global retailer also said it would launch online operations aimed at developing more business with small traders in India, according to this Reuters report.

Wal-Mart has taken its time in India after running into a buzz saw of controversy in the populous Asian country.

Last October, it ended its partnership with New Dehli-based Bharti, after investing $100 million in the six-year venture.

Government officials have also made Wal-Mart pause its expansion plans in India in order to protect smaller merchants that are still a bedrock of local trade. Wal-Mart’s legal problems involving the Foreign Corruption Practices Act has also slowed development in its Indian operations.

The retail giant currently has about 20 wholesale locations in India which sell to smaller retailers, not directly to consumers. In 2013, Wal-Mart did not open any new outlets as the FCPA probe added caution to overseas’ plans.

“We are taking a number of important steps to strengthen compliance so that we do the right thing everyday,” Scott Price, Wal-Mart’s Asia chief executive, said in a statement announcing today’s rollout.

“We are evaluating and reinforcing procedures and programs relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others,” he said, according to the Reuters report.

Last December, Wal-Mart named Krish Iyer as the new CEO and president of its Indian unit. He replaced Ramnik Narsey, who served in the interim since June, after the departure of Raj Jain, who headed up Wal-Mart’s business venture with Bharti.

New Wal-Mart CEO Doug McMillon took over the top post in February after serving as head of international operations.