Friday, November 25, 2011

Walmart to come to India soon? Tesco & Carrefour too?

Western supermarket brands to possibly enter India (new FDI rules announced by the Indian government). Walmart (USA), Tesco (UK) and Carrefour (France) to enter the Indian economy that is battling high food prices and shortage of food grains due to poor supply chain management and inefficiency of middle men. Only 8% of urban Indian retail sector is organ ized and 92% is unorganized - tens of millions of middlemen who form a powerful lobby support protectionist rules of the past. Expect the fury of Indian public along with a tough fight from politicians and middlemen.

Walmart has a tough journey ahead in India! But if it does make inroads, it shall be HIGHLY profitable. If Walmart's legendary supply chain management efficiency is brought to India, it shall help solve the problem of wastage of food due to poor logistics. However, Walmart should take care not to step on others toes (which is quite difficult) or hurt the margins of sellers by squeezing them. 

- Gerry.

No comments: