Walmart, the worldwide retail powerhouse with ownership of Flipkart and PhonePe, is increasing its export of goods from India. This strategic move aims to diminish reliance on China and foster a more diversified supply chain, especially in light of the ongoing tensions between Washington and Beijing.
According to figures from data firm Import Yeti, Reuters revealed that the percentage of Walmart’s imports in the US from India surged to approximately 25% between January and August this year, a notable increase from the mere 2% reported in 2018. Although China maintained a dominant position, constituting 60% of Walmart’s imports during the specified period, this marked a significant decrease from the 80% reported in 2018.
“We want the best prices. That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials,” the news agency quoted Andrea Albright, Walmart’s executive vice president of sourcing, as saying.
Nevertheless, Walmart clarified that the data does not inherently imply a reduction in reliance on any specific country as a sourcing market. The company emphasized its proactive efforts to enhance manufacturing capacity, with India playing a pivotal role in this strategic initiative.
Albright mentioned that Walmart is shipping a diverse range of goods, including toys, electronics, bicycles, and pharmaceuticals, from India to the United States.
Having initiated sourcing operations in India in 2002, Walmart currently sustains a workforce of 100,000 individuals in the country. This includes both permanent and temporary employees stationed across various offices affiliated with its units, namely Walmart Global Tech India, Flipkart Group, PhonePe, and sourcing operations.
Earlier this year, when discussing the strategic objectives in India for the retail giant, CEO Doug McMillon expressed a commitment to annually importing Indian goods worth $10 billion by 2027. He further emphasized the company’s intention to establish partnerships with suppliers, including small and medium enterprises, as part of this endeavor.
In 2018, the retail giant strengthened its footprint in India by acquiring a 77% stake in the prominent e-commerce player Flipkart for $16 billion. Additionally, during the six months leading up to July 31, 2023, the company invested $3.5 billion to acquire Flipkart shares from non-controlling stakeholders, such as Tiger Global and Accel.
Meanwhile, Amazon, a competitor to Walmart, asserts that it has facilitated exports totaling $8 billion from India to date and is now aiming to elevate this figure to $20 billion.
