Why Walmart is Doubling Down on $10bn Indian Sourcing Target
Walmart CEO Doug McMillon has reaffirmed the company's commitment to a US$10bn annual sourcing goal in India by 2027.
The move serves as an attempt to boost India’s exports and economic growth, while diversifying Walmart’s supply chain.
Doug recently met with Indian Prime Minister Narendra Modi, as well as entrepreneurs who trained under Walmart Vriddhi, Walmart’s supplier development programme.
The meetings focused on empowering MSMEs (micro, small and medium enterprises), skill development, job creation and boosting Indian exports into global markets, as well as digital inclusion.
A strategic sourcing shift
Doug and the prime minister were joined by Walmart International CEO Kathryn McLay and board member Steuart Walton to discuss the company’s partnership with India.
Key businesses discussed included Walmart Sourcing, Walmart Global Tech, Flipkart and PhonePe.
- In 2002, Walmart opened its sourcing office in Bengaluru, beginning its presence in India
- In 2018, Walmart conducted a US$16bn majority acquisition of Flipkart, an Indian ecommerce company
- Over the past two decades, Walmart has already sourced more than US$30bn in goods from India, from food to apparel
Walmart has already made significant progress when it comes to sourcing from India, but reaching the US$10bn target would take the relationship to new heights.
Doug says: “We see the growth in India. We see entrepreneurship happening here.
“We get to do business all over the world, and it’s rare to have such a big economy growing so fast and creating so much opportunity for so many. We want to be part of that process.”
Walmart’s presence in India spans almost every market, including digital commerce, global sourcing, technology, financial inclusion and community development.
As a result, it has had an incredible impact on the economic growth of the country, contributing to job growth and market access across India’s borders.
Kalyan Krishnamurthy, CEO at Flipkart, comments: "Walmart has partnered with this Indian growth story across categories and sectors, touching almost 300 million households across every pin code in India."
Supplier development
Since being acquired by Walmart, Flipkart has been able to have its own impact on the Indian community, expanding the digital economy and contributing to the growth of MSMEs.
"Our unwavering commitment at Flipkart is to empower MSMEs by democratising access to digital commerce and vast growth opportunities," continues Rajneesh Kumar, SVP and Chief Corporate Affairs Officer at Flipkart.
"Through strategic collaborations like Walmart Vriddhi, we are collectively enabling entrepreneurs to scale their aspirations and significantly contribute to India's burgeoning digital economy."
Since launching in 2019, more than 70,000 MSMEs have been trained by Walmart Vriddhi through personalised mentorship, access to digital commerce and strategic partnerships.
This has allowed them to grow in scale, both throughout India and globally, and modernise as companies.
Walmart is hoping to help an additional 100,000 MSMEs In India by 2029, forming part of its dedication to empowering India’s community.
Narayan Rane, former Minister of MSMEs in India, says: "Initiatives like the Walmart Vriddhi programme play a pivotal role in facilitating the digital transformation and growth of MSMEs.
“I extend my congratulations to the Walmart and Flipkart team for providing over 50,000 Vriddhi graduates with the opportunity to unlock market opportunities."
Community success
Through Walmart Vriddhi, many independent businesses have been able to undergo global expansion, boosting the job and economic opportunities for the community.
With Walmart’s dedication to sourcing in India and creating growth opportunities such as Walmart Vriddhi, it has strengthened its partnership and transformed retail experiences around the world.
Kathryn adds: "We believe business success should translate into community success. We have seen it happen. We have helped make it happen."
With the latest affirmation of the US$10bn sourcing commitment, Walmart’s impact on the Indian economy and community looks set to continue growing.
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