Walmart India head Raj Jain quits; Ramnik Narsey is interim chief

Wal-Mart Stores Inc, which has spent years trying to crack the long-restricted India market, said on Wednesday its country head had left the company and named an interim replacement.

Wal-Mart, the world’s biggest retailer, did not explain the reason for the change.

[caption id=“attachment_906825” align=“alignleft” width=“380”] Getty Images[/caption]

The company has been the most aggressive among global supermarket chains trying to set up in India but in November its local joint venture suspended its chief financial officer and others as it investigated alleged violations of U.S. anti-bribery laws.

Wal-Mart, which has run wholesale stores in India since 2009, has not opened a new one since October despite its stated plans to open eight in 2013. It has 20 such stores in India.

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In a statement, Wal-Mart named Ramnik Narsey as interim head of its India business, replacing Raj Jain, who it said has left the company. Jain joined Wal-Mart in 2006 and was named head of its India business the following year.

Narsey joined Wal-Mart last month after serving as chairman and chief executive officer for Woolworths India, a unit of Woolworths, Australia’s biggest supermarket chain.

I am not surprised," said Harminder Sahni, managing director at Gurgaon-based retail consultancy Wazir Advisors, commenting on Jain’s departure. “Their biggest agenda was to get multi-brand retail clarifications in a manner that it is conducive. That has not come about.”

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Wal-Mart has been the most aggressive among global supermarket chains trying to set up in India, but in recent months had run into a series of speed bumps.

Wal-Mart, whose India joint venture partner is Bharti Enterprises, has not opened a new wholesale store in the country since October last year despite announcing plans to open eight in 2013. It has 20 such stores in India.

In November, the joint venture suspended staff members including its chief financial officer as it investigated alleged violations of U.S. anti-bribery laws.

While global supermarket chains such as Tesco and Carrefour SA covet entry into Asia’s third-largest economy - where roughly 90 percent of the $500 billion in retail sales is conducted at informal or stand-alone stores - regulations have proved daunting.

New rules unveiled earlier this month requiring foreign supermarkets to set up their own warehouses and stores in India are expected to delay further the entry of global operators, increase costs and hurt cash-strapped local retailers eager to partner with foreign companies.

Many Indian states, meanwhile, have opted not to sign on to the policy allowing global supermarket chains as they worry that mom-and-pop operators would be out of business.

Wal-Mart has also had to deal with an ongoing Indian investigation into whether it flouted rules when it made a $100 million investment in a consultancy firm. The company has said it complied with the rules.

“We remain optimistic about our business in India and look forward to our future in India under Ramnik’s leadership,” Scott Price, president and chief executive officer for Wal-Mart Asia, said in the statement on Wednesday.

Reuters