You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Sony forecasts $2 billion loss, cites weak mobile
     TOKYO – Sony expects its annual loss to swell to more than $2 billion after writing down the value of its troubled mobile business as phone sales were battered by brutal competition.
  • Billionaire’s house arrest sends stocks crashing
      MOSCOW – The arrest of a Russian billionaire has sent shares in his holding company into a tailspin.
  • 2 firms to expand, add jobs
    A pair of companies will look to improve their operations with an investment of nearly $3 million combined, according to tax abatement ­requests filed last week with the city.
Advertisement

Retailer focuses on India to grow

Wal-Mart plans to open 50 more wholesale stores in India over the next five years and expand its e-commerce operations, the company said, in its latest attempt to grow its presence in the subcontinent.

Wal-Mart already runs 20 wholesale stores in the country, selling goods to local businesses. But under Indian law, foreign retailers cannot sell directly to consumers, either in-store or online, which has kept Wal-Mart and other global retailers from setting up shop in the country.

That could change depending on the outcome of India’s ongoing elections.

The party heavily favored to win – India’s Bharatiya Janta Party, or BJP – is officially opposed to allowing foreign investment in the retail sector. But the BJP’s prime ministerial candidate, Narendra Modi, is more amenable to working with international companies. During his tenure as chief minister of the Indian state of Gujarat, Modi built a reputation as a business-friendly politician.

Wal-Mart’s journey into India’s retail sector has been an arduous one since it opened its first store there in 2009. The company forged ahead despite regulatory difficulties that discouraged other businesses from entering the Indian market.

In 2012, Wal-Mart said it was investigating allegations of corruption in its global arms, including the one in India. The retailer also parted ways with business group Bharti Enterprises, which jointly operated its existing stores.

In a statement last week, Wal-Mart said it was taking steps to “strengthen compliance” as it continued to investigate corruption.

“We are evaluating and reinforcing procedures and programs relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing among others,” Scott Price, president of Wal-Mart Asia, said in the statement.

Wal-Mart’s store expansion plans are frozen until 2015.

Advertisement