Flipkart owner Walmart launches programme for MSMEs to sell globally
The American retail corporation announced the creation of Walmart Vriddhi, a supplier development programme to train and prepare 50,000 Indian small businesses to 'Make in India' for global supply chains.
American multinational retail corporation Walmart, which owns an 81.3 percent stake in Indian ecommerce company Flipkart, today announced the creation of Walmart Vriddhi, a supplier development programme to train and prepare 50,000 Indian small businesses to 'Make in India' for global supply chains.
In a press statement, the retail company said it will actively work with India’s micro, small and medium size enterprises (MSMEs) to expand domestic capabilities and participate in the global economy. It said this will help create domestic jobs and sustained growth for the Indian MSME sector, and also enable consumers to access quality goods from India no matter where they are buying from.
"The Walmart Vriddhi Program will connect the network of supplier communities that we have today in Flipkart and Best Price, using their learnings to help develop a new powerful curriculum and expand and accelerate the work even further and faster," said Walmart International President and CEO Judith McKenna at the New Delhi launch.
Walmart stated that suppliers who have the desire and potential to grow will get tools they need through Walmart Vriddhi.
"Over the next five years, MSMEs will receive in-person training, a feature unique to this program, as well as expert advice, access to Walmart’s deep global experience and a network of peers and mentors in their local communities. Participants will be equipped for both online and offline growth, helping give them the tools to potentially become a part of the supply chains of Flipkart, Walmart Global Sourcing and Walmart India, or those of other domestic and international companies," the company said in a statement.
Walmart has remained positive about its prized assets in the India market – Flipkart and PhonePe, even as it earlier expressed confidence that the country represents a significant opportunity for growth. However, Flipkart continues to put pressure on the financial performance of Walmart’s international operations as its gross profit declined by 157 basis points, the global retailer said during its second quarter results.
At the launch of the development programme, McKenna emphasised that Walmart has been working "deliberately and consistently" to bring Indian MSMEs into its supply chain.
"That’s because not only is it good for business – but also because we have a long-term commitment to India. It not only makes good business sense, but when the communities we serve flourish, so does also the entire local economy. Over the last few years, we’ve made a number of bold steps to invest in India and its growth as a country," she said.
Walmart Vriddhi has partnered with local non-profit Swasti to "develop and deliver" the programme, McKenna said. Swasti Founder and Chief Mentor Shiv Kumar expressed confidence that the partnership will help MSMEs participate in domestic and global supply chains, contribute to their profitability and competitiveness, and also contribute to India's economic development.
Walmart and Swasti aim to deliver education via university partners at 25 Walmart Vriddhi institutes across India in an attempt to make training accessible locally in the communities where India’s MSME entrepreneurs live and work. The institutes will be opened over the next five years at pan-India locations convenient for MSMEs from a wide variety of industries and product categories.
