The FINANCIAL — Endorsing India’s continuing rise as a global hub of manufacturing, Walmart today announced that it will triple its exports of goods from India to $10 billion each year by 2027. Walmart’s new export commitment is expected to provide a significant boost to micro-, small- and medium-sized enterprises (MSMEs) in India, alongside ongoing efforts such as the Flipkart Samarth and Walmart Vriddhi supplier development programs.
The expansion in sourcing will include helping develop hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness and general merchandise, along with apparel, homeware and other key Indian export categories.
“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,” Doug McMillon, president and chief executive officer of Walmart Inc. said. “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.”
“Flipkart is proud to work with thousands of great Indian brands, MSMEs and artisans, with a focus on making them successful. We provide 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,” Kalyan Krishnamurthy, chief executive officer of Flipkart Group said.
To accelerate its India exports, Walmart will strengthen development of the supply chain ecosystem in India, both by boosting existing exporters and by expanding the nation’s pool of export-ready businesses.
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 and more. Walmart brings global market intelligence and demand forecasts that help suppliers with strategic planning. This support has contributed to the global success of hundreds of companies, including Welspun, LT Foods and Aniket Metals, plus fast-growing export businesses like Global Green Company and many more.
“Since we became a Walmart supplier in 1998, Welspun has grown to become the world’s largest home textiles manufacturer, exporting 94% of our output and employing 20,000 people, 25% of whom are women,” Dipali Goenka, chief executive officer and joint managing director of Welspun India Ltd. said. “Most significantly, businesses are agents of change, and we have been able to leverage our relationship with Walmart to sharpen our focus on quality, sustainability and diversity & inclusiveness. Welspun is a homegrown brand that exemplifies the Make in India story internationally. Also, we have stood together as partners during challenging times. With Walmart’s expanded commitment to Indian suppliers, we know we are leading tomorrow together.”
At the grassroots level, Walmart’s supplier development program Vriddhi, launched a year ago, is bringing export skills and knowledge to MSMEs to prepare them to succeed as suppliers to Walmart, Flipkart and other companies in India and around the world. The goal is to empower 50,000 MSMEs to Make in India for domestic and global supply chains over five years.
India is already one of Walmart’s top sourcing markets, with annual exports worth about US$3 billion. India-made apparel, homeware, jewellery, hardlines and other popular products currently reach customers in 14 markets, including the U.S., Canada, Mexico, Central America and the United Kingdom, via Walmart’s Global Sourcing office in Bangalore, which opened in 2002. As the sourcing hub ramps up over the next few years, the local team will be empowered to make an even greater impact for even more local businesses in a wider range of sectors.
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,400 stores under 55 banners in 26 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.