Walmart, Tatas in partnership talks for cash-and-carry, kirana stores: Report

Walmart and Tata Group are in partnership talks that might involve the cash-and-carry stores, reports The Economic Times. The partnership might also help Walmart expand its reach to kirana stores, it added.

“This partnership will aim to expand Walmart's reach to kiranas, upgrade them and then utilise the network for fulfilment of food and grocery orders for Flipkart,” a source told the paper.

The US retail giant had acquired a 77 percent stake in Flipkart in May 2018 for $16 billion.

Moneycontrol could not independently verify the story.

Walmart currently operates 26 cash-and-carry stores in India under the 'Best Price' brand name. The company also has three fulfilment centres in India – Mumbai, Lucknow and Hyderabad.

Walmart is looking for a partner in India who is 'respected' and 'has a voice in policymaking', the report said.

The retailer wants to focus on Flipkart instead of establishing supermarkets and hypermarkets, the report said.

Tata Group and Tata Sons CFO Saurabh Agrawal is in charge of the negotiations, the report said. A team from the Tatas has already visited the US and begun negotiations with Walmart’s senior management. The details of the transaction are yet to be finalised, it added.

The strategic partnership will be the second such arrangement for the Tatas. In 2017, it formed a joint venture (JV) with British retailer Tesco for retails stores under the brand names Star Hyper, Star Market, Star Daily and Star Extra.