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Walmart, Amazon plan to invest almost $300m in Indian retail market

RBR Staff Writer Published 25 January 2016

Walmart and Amazon are planning to invest more than Rs 20bn ($296m) in order to strengthen their network and to expand their share in the Indian retail market.

Amazon

The US companies are intending to bolster their presence in the country through heavy discounting strategy.

The country's rules on FDI are not likely to affect these companies - Amazon brings buyers and seller together on an online platform, while Walmart cater as wholesalers, reported The Economic Times.

Amazon is planning to invest Rs 16.96bn ($251m) through a right issue into Amazon Seller Services. This capital injection will be its biggest in the country since 2013.

With the latest cash infusion, the firm's total investment in the country will touch Rs 48bn ($710m).

Walmart Stores is planning to invest Rs 3.6bn ($53.2m). Its plans to open around 50 outlets. This move comes as it intends to close nearly 270 of its stores globally.

Retailers Association of India (RAI) CEO Kumar Rajagopalan was quoted by The Economic Times as saying: "India is one of the last few highgrowth markets. Modern retail remains untapped with just a 10 per cent share. Online companies see the potential of reaching more than 400 cities with a click. All the indicators from a political standpoint also show that India is reaching a stage of high-level liberation even at state level."

RAI expects the size of total retail market size to cross $1 trillion in over the next four years from the present $600bn.


Image: Amazon to invest heavily in Indian retail business. Photo: Courtesy of franky242/FreeDigitalPhotos.net.