Walmart India to boost the fresh food business
NEW DELHI: Walmart India He is turning his attention to his fresco. food business for which it plans to open collection and distribution centers in northern India and increase its supply chain.
While food represents 60% of the cash and carry based in the US. UU retailer The general business in the country, the contribution of fresh fruits and vegetables is very low. Walmart currently sources fruits and vegetables mainly from mandis and the move to bolster direct sourcing comes against the backdrop of the Walmart Foundation committing around Rs 180 crore for farmers over the next five years.
"Currently, our major focus is on hardy vegetables such as potatoes, onions, garlic and on some other vegetables with slightly longer shelf life compared to greens. This is because in this category, we can have a supply chain advantage rather than just source from mandis. The major focus is on building a supply chain for vegetables. The centres that we plan to open in North India to enable us to directly source from farmers will be outsourced, as it's a pilot project that will help us understand the whole game plan," said Krish Iyer, president & CEO of Walmart India .
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. But apart from focusing on fresh fruits and vegetables, Walmart India is also accelerating its store openings. The company opened its 25th store in Indore, MP, earlier this month.
It takes three to four years to open a store. The initial period was more about rebuilding the equipment, reviewing the processes and the basics, and then starting to rebuild the pipeline. We return some experts to the country to start the process. We are in a growth phase and we are investing to grow, said Iyer.