updated - June 3, 2020 Wednesday EDT
Fifty more Wal-Mart wholesale outlets are coming to India as the company becomes a part of the country's infrastructure.
"We are taking a number of important steps to strengthen compliance so that we do the right thing every day," Scott Price CEO at Wal-Mart Asia said in a statement Reuters reported.
"We are evaluating and reinforcing procedures and programs relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others," Price said in the statement Reuters reported.
A new place for buying online through the company's website is also part of the deal that will see the locations unlock their doors in four to five years in India's western and southern region and country's states of Maharashtra and Andhra Pradesh.
The retailer will trade on minimal terms, and follow the same wholesale format as the the new retail locations.
Wal-Mart currently has 20 stores in India so far Reuters reported. The initial 50 locations are slated to unlock their doors in the near future in the regions of the country.
A new leader for Wal-Mart India was chosen in December. The only thing pending in the deal is the decision regarding the outcome of the country's upcoming May election, which will determine how the company wants to run their stores pending a ruling about a direct investment option for supermarkets that could be reversed.
According to Bloomberg Businessweek, Wal-Mart bought out Indian retailer Bharti Enterprises in October, leaving the world's largest retailer without a partner to help establish supermarkets in the country.
The news was a further setback for the retailer's growth in India, and gave full control of 20 wholesale stores and their supply chain.
Although the country allows foreign retailers to own wholesale operations, they are required to team up with Indian retailers to establish retail stores. Wal-Mart opened its first wholesale store in May 2009 in India's northern city of Amritsar in a deal where only businesses with valid sales tax documents are allowed to shop after becoming members Bloomberg Businessweek reported.
TOP 10 FRANCHISES OF 2020