Ramnik Narsey, named the interim chief of Walmart’s India operations, will have a tough job on hand.
From fighting concerns over the world’s largest retailer gobbling up the business of mom-and-pop stores to inducing fresh ideas to make business profitable in India, Narsey will have his hands full.
Bharti Walmart, the Indian unit, is a joint venture between Bharti Enterprises and Bentonville, US-based Walmart.
Narsey, who joined Walmart a month ago, was previously associated with another retail giant, Woolworth, as the CEO of its Indian operations.
His previous work experience includes stints at Mobil Oil and ExxonMobil. Narsey has been in India since 2011.
At Woolworths, he led a team that identified potential opportunities to reduce cut costs and improve margins.
Retailers associated with the Australian in his previous avatar as Woolworths CEO say that Narsey has a deep insight into the way kirana shops function.
Woolworths, which had a tie-up with the Tata group’s electronic retail venture, Croma, for sourcing of products, had grown under Narsey’s direction.
Industry insiders say that Narsey spent time talking to retailers and consultants in an effort to understand the business environment and opportunities in India.
A civil engineer from The University of New South Wales, Australia, Narsey will have to keep costs under tight control as the company expands into India’s $450 billion retail business.
Walmart has been keen to enter the front-end retail business in India. However, rules regarding investments and sourcing have hampered the company.
The US retailer has also been facing heat on other fronts in India. In November last year, Walmart suspended some executives in its Indian unit as it examined potential violations of US anti-bribery laws.
Pankaj Madan, Chief Financial Officer of the Indian unit, was among the officials suspended.
The Enforcement Directorate has also been probing the Rs 455.8 crore investment by Walmart in Cedar Support Services Ltd, a subsidiary of Bharti Ventures, for alleged “illegal” investments and flouting of FDI rules under the FEMA and Prevention of Money Laundering Act.