Walmart CEO Doug McMillan on Thursday said that the company has been sourcing from India for over 20 years, and that the company would look to invest more in the cold chain and supply chains in the country.
The company also announced that it would source as much as $10 billion annually from India by 2027.
“We have experience helping farmers raise yields and get paid more, which has been a challenge since multibrand retail is not allowed in brick and mortar," McMilan said while speaking at the Hindustan Times Leadership Summit.
He also said that while it holds a majority stake in Flipkart, "there was room for more", as the company plans to go for an IPO.
Here are more points from Doug McMillan's interaction at the summit:
ON SOURCING FROM INDIA
"India is a priority for sourcing, our sourcing relationship is 20 yrs old. We currently source $3 BN of Made in India products every year which reaches 14 markets. We have made an announcement to triple exports to $10 BN annually by 2027."
ON FLIPKART'S STEPS DURING PANDEMIC
"Flipkart moved quickly to ensure continuity of supply chains during the pandemic. Flipkart worked with kiranas and large brands such as Tata Consumer Products. "
"We created partnerships with local delivery companies . "
"Flipkart in association with HSBC provided $450 MN to suppliers in need."
ON WALMART AND INDIA
"Walmart Foundation has commited $25 MN to support farmers, and we have already delivered$15 MN."
"Walmart has had a large sourcing relationship in India."
"We have tried to invest in India in multiple ways, including through JV with Bharti."
"We would like to invest more in cold chain and supply chains."
"Rules change everywhere (on changing FDI rules).
"Our big bet is that India wants competition and market dynamics."
"We experienced changing govt regulations when we took over Flipkart and Walmart
"We will be patient and wait for our moment (in multibrand retail in India)."
ON FLIPKART'S IPO PLANS
"As we invested in Flipkart, we mentioned our plan was for an IPO and that remains the same"
"We don't own 100% in Flipkart and PhonePe. This could diversify more through IPO. We are excited to be a majority investor but there is room for other people."
First Published: IST