Walmart India has posted 11% increase in its revenue for the year ended March at Rs 4,065 crore, the documents filed with the Registrar of Companies showed. However, the Indian entity's net losses almost doubled for the same period.
Walmart entered India in 2007 and opened its first store in Amritsar, Punjab in May 2009. In 2013, Walmart India became a wholly owned subsidiary of Walmart Inc. Walmart Inc has also acquired 77% stakes in India’s largest commerce website Flipkart for USD 16 billion.
"We continue to build capabilities for the future through investments in revamping our technology infrastructure to enhance our omnichannel capabilities and in people development. The increased losses during the year under review reflect the investments that we are making to drive our future growth," the company said, according to an Economic Times report.
Last year, Walmart India said it would invest about USD 500 million to open another 47 stores by 2022. Walmart India's business is membership-based and counts more than one million members, the majority of whom are small resellers and kiranas.
In 2018, Walmart had announced that its Indian arm will grow its direct sourcing from farmers to 25% of the produce sold in its wholesale stores over a five-year period.
Nearly 90% of all consumer goods sold in India are through small kirana stores. There are an estimated 10 million kirana stores in India.
Walmart operates three fulfillment centres in the country - at Mumbai, Lucknow, and Hyderabad.
Walmart’s biggest competition comes from Reliance Industries which controls India’s largest bricks-and-mortar retail chain, as well as a network of wholesale stores that is twice the size of Walmart’s. The ecommerce fight is set to get heavy with Reliance entering the space.