Walmart (NYSE: WMT) has registered a new company in India as part of its continued attempts to enter into the country's retail market with a new partner.
According to the data available with the Ministry of Corporate Affairs, the company filed documents for Walmart India Private Ltd. on Jan. 15.
Walmart has had its eye set on India for quite some time, lobbying with American lawmakers since 2008 for facilitating its entry into the Indian market. In October, Walmart announced that it was ending its joint effort with Bharti Enterprises of India to operate 20 wholesale "cash and carry" stores. The venture, formed in 2007, was set up to operate these stores under the Best Price Modern Wholesale brand.
After the partnership with Bharti Enterprises was dissolved, Walmart said that the Indian government's regulations requiring foreign retailers to buy 30 percent of products from local small and midsize businesses were the "critical stumbling block" to opening Walmart stores there.
Walmart suffered another setback in its quest to enter India when its CEO there, Raj Jain, abruptly departed following a six-year stint after the retailer suspended some executives at the Bharti joint venture. During the suspensions, Walmart launched an investigation of potential violations of U.S anti-bribery laws. At the time, Walmart was also facing a probe in India for allegedly violating the country's foreign exchange norms and had been accused of illegally investing in its partnership with Bharti Enterprises.
A Walmart spokesperson who corresponded with FierceRetail exclusively denied claims that the company filed documents for Walmart India Private Ltd. on Jan. 15.
"Post the announcement in October 2013 by Walmart and Bharti Enterprises about running independent ventures, Walmart initiated the process of renaming the company in India. This is a process in any demerger and we have not set up a new company," noted the spokesperson via email.
For more see:
-this Business Today article
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