Supermarket giant Wal-Mart's first retail outlet in India will likely not open before around mid of 2016 because the Bentonville, Arkansas-based retailer reportedly needs more time to apply for retail store licence as it is reconsidering the conditions.
When India opened its retail sector to foreign investors in September last year, Wal-Mart had announced that it would open its first retail store in India within two years.
But, two sources familiar with developments at the retail giant has revealed that the company would not apply for its first licence before March 2015.
Wal-Mart has already announced that it would need a further 12-18 months after getting the licence to open each retail store in the country. It means Wal-Mart's first retail store in India would open in the year 2016 at the earliest.
Wal-Mart's local wholesale business partner Bharti Enterprises Ltd is reconsidering whether to continue or ditch their joint venture (JV) as the JV would need heavy investments without ensuring returns in the near future.
In case Bharti quits the JV, Wal-Mart would have to find a new partner to meet requirement that a local company must owns at least 49 per cent of the retail business.
Source: Zee News