Walmart Inc announced on Thursday, December 10, that it will triple its exports of goods from India to $10 billion each year by 2027. The move is aimed at expanding its global reach of goods from the nation. The expansion in sourcing will include helping develop as many as hundreds of new suppliers in categories such as pharmaceuticals, food, health, wellness, consumables, general merchandise, along with homeware, apparel, and other key Indian export categories. In order to accelerate its India exports, Walmart will strengthen the development of the supply chain ecosystem in the country, both by boosting existing exporters and by expanding the nation's pool of export-ready businesses.
According to an official statement from the firm, Walmart's new export commitment is expected to provide a significant boost to micro-small- and medium-sized enterprises (MSMEs) in the country, alongside the ongoing efforts such as the Flipkart Samarth and Walmart Vriddhi supplier development programs.
“As an international retailer that brings value to customers and communities worldwide, Walmart understands that local entrepreneurs and manufacturers are vital to the success of the global retail sector. And we see huge potential for Indian suppliers to grow their businesses by leveraging the unique scale and global distribution opportunity Walmart provides,” said Doug McMillon, president and chief executive officer of Walmart Inc.
“By significantly accelerating our annual India exports in the coming years, we are supporting the Make in India initiative and helping more local businesses reach international customers, while creating jobs and prosperity at home in India. It is also a way for Walmart to bring more high-quality, India-made goods to millions of customers all across the world.” he added.
At the grassroots level, Walmart's supplier development program Vriddhi, launched one year ago, is bringing export skills and knowledge to MSMEs to prepare them to succeed as suppliers to Walmart, Flipkart, and other firms in India and around the world. Walmart acquired about 77 per cent of the Indian e-commerce firm Flipkart for roughly $16 billion in 2018, making it the biggest deal for the country's e-commerce sector
“Flipkart provides a platform that allows them to reach the pan-India market and refine their all-important branding, marketing, logistics, and compliance capabilities for the global market, too. We applaud Walmart for investing to help Indian companies take Make in India products global,” said Kalyan Krishnamurthy, chief executive officer of Flipkart Group.
Walmart has sourced goods from India for more than 20 years, supporting local suppliers to help upgrade their operations and meet international standards, develop new product lines and build new capabilities in packaging, marketing, supply chain management. India is already one of Walmart's top sourcing markets, for products such as homeware and jewellry with annual exports worth about $3 billion.