Walmart, which had investigated violations of the US Foreign Corrupt Practices Act in its Indian arm, is ensuring they are not repeated. “Along with our growth, we are taking a number of important steps to strengthen compliance so that we do the right thing everyday. We are evaluating and reinforcing procedures and programmes relating to all compliance areas, including licensing and permits, food safety and responsible sourcing, among others,” Price said. This is the first major announcement by the retailer after it called off a six-year partnership with Bharti Enterprises in October and decided to operate stores independently in India.
The US retail giant agreed to buy out its Indian partner in their 50:50 cash-and-carry joint venture Bharti Walmart, which ran 20 wholesale stores under the Best Price Modern Wholesale brand in India, for an undisclosed sum. Bharti was to acquire $100 million of compulsorily convertible debentures held by Walmart in Cedar Support Services, a company owned and controlled by the Indian firm. It will continue to run its ‘easyday’ retail stores on its own.