walmart india

7/31/2019 Walmart INDIA

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Wal-Mart INDIA In 2007, Walmart announced an agreement with Bharti Enterprises to establish a joint venture, Bharti WalmartPrivate Limited, for wholesale cash-and-carry and back-end supply chain management operations in India. A typicalwholesale cash-and carry facility stands between 50,000 and 100,000 square feet and sells a wide range of fruits andvegetables, groceries and staples, stationery, footwear, clothing, consumer durables and other general merchandiseitems. Our first Best Price Modern Wholesale opened in 2009. Bharti Walmart Private Limited is a joint venture

between Bharti Enterprises , one of India's leading business groups with interests in telecom, agri-business, insuranceand retail, and Walmart , the worlds leading retailer, renowned for its efficiency and expertise in logistics, supply chainmanagement and sourcing. The joint venture is establishing wholesale cash-and-carry stores and back-end supplychain management operations in line with Government of India guidelines. Under the agreement, Bharti and Walmarthold 50:50 stakes in Bharti Walmart Private Limited.The first Wholesale Cash-and-carry facility named "Best PriceModern Wholesale" Opened in Amritsar in May 2009 and subsequently in Zirakpur (Near Chandigarh), Jalandhar,Kota, Bhopal, Ludhiana, Raipur, Indore, Vijaywada, Meerut, Agra, Lucknow, Jammu, Guntur, Aurangabad ,Bathinda,

Amravati and Hyderabad

Sustainability forms an integral part of our business strategy in India. At Bharti Walmart, oursustainable initiatives are focused on the following Global Sustainability goals

To be supplied 100% by renewable energy To create zero waste To sell products that sustain our resources and environment

ENERGY A few initiatives which have been undertaken by the Best Price Stores towards efficient energyconsumption include:

T5 lamps are utilized for lighting in sales areas and CFLs in administration areas LED lighting is used in parking areas and frozen rooms Daylight harvesting to substantially reduce the electrical consumption in the Store during

daylight hours. CFC Free Refrigerant (R 404a), used in Refrigeration System, does not deplete ozone layer

and thus making the system environmental friendly. Energy efficient compressor system, using two stage compressor systems, reduces energy

consumption. Automated cold room lights Using paints with low Volatile Organic Compound values Water cold chillers for air conditioning Insulated glass with frost free lamination is used to reduce thermal loss

Green Store Initiative

Best price is continually working to identify and implement environmentally sustainable steps that help us lessen our impact on the environment. Some of the changes we bring in this regard are the way we build our stores, whichinclude:

At Home Office, we strive to follow some fundamental rules to conserve energy Low flow plumbing/toilets, sensor taps and light motion sensors Turning off lights, air-conditioners and other equipments when not in use. Switching off computers, printers, photocopiers, coffee dispenser, etc. before going home. Switching off the lights of our room, cabin in office when going out for more than five minutes. Preference to energy efficient equipments / power saving devices in purchasing decisions. Using low energy light bulbs such as CFL, LED. Utilizing maximum day light by requesting housekeeping staff to open vertical blinds every day in offices/

cafeteria
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WASTE At Bharti Walmart, we constantly strive to minimize waste throughout the value chain. Following are few key initiativestowards the reduction of waste

Identify, classify and measure waste at the stores/HO/DC through an NGO Establishing a baseline for dump Launched recycle plastic waste program in partnership with HUL Working with suppliers to reduce packaging and weight (glass bottle and packaging size); reconfiguring

secondary packaging (pack more in less) Rainwater harvesting and to save water otherwise which would have been wasted Launched recycled cloth bags (sourced from an NGO) at reasonable costs to reduce plastic bag consumption at

stores Evaluating the possibility of using refurbished fixtures in the stores At Home Office, we strive to use recycled wood for work stations, non-toxic fabrics and CRI certified (recycled)

carpets.PRODUCTS We consider customer needs and expectations and help them to buy sustainable, green products. In this regard, hereare the initiatives towards achieving the same

Nearly all Private Band Suppliers are audited for Ethical and Social Compliance on Bharti Walmart's requirementincluding follow up required for closing the corrective actions

Exploring opportunities of Backward linkage for meat in Punjab.

Mapping usage of palm oil in Private Label products. Aiming to train and source from women in agriculture

Direct Farm Program Bharti Walmart started the Direct farm initiative during December 2008 with only 65 farmers in the state of Punjab.Company introduced technical interventions like Soil Testing, Variety Selection, Nursery Management, Fertilizer andPesticide application and programs on integrated pest management and post harvest management. Company hasset up Demonstration Farms to train farmers in their own farms. Bharti Walmart has also invited leading researchinstitutes and agri input players to support us in farmer training.

Today Bharti Walmart connects with over 7,000 small and marginal farmers across seven states delivering locallygrown fruits and vegetables to its Best Price Modern Wholesale stores

Under this program, Bharti Walmart is aiming to sustainably enhance the income of the small and marginal fruitand vegetable farmers,including women,through robust backward and forward integration.

Aims to source 50% requirement of fresh produce directly from over 35,000 farmers in India by 2015 Committed to improve farmers' income by 20% and reduce supply chain waste by 5% by end of 2015 Ambition to impact one million Indian farms' workforce (which includes farmers, their dependents & workers,

others involved under direct farm program)

India(Direct Farming)Supporting farmersInitiated in December 2008 with 65 farmers in Malerkotla, Bharti,Walmarts Direct Farm program has expanded to include 3,700 farmersacross Uttar Pradesh, Delhi NCR, Haryana, Karnataka and Maharashtrastates. We work with these small farmers to close the critical gaps in

the cultivation and postharvest processes. The farmers earn a betterprice for their product and receive expert advice on crop planningand management, while our customers benefit from fresher, safer andlower-priced produce. As our business grows and our scale improves,we will develop a more robust system for consolidation, handling,packaging and delivery of produce to our stores


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India (Fleet Improvement)Shipper boxesIn December 2011, Walmart India began piloting the use of shipperboxes to transport frozen food to several long-distance delivery stores.These innovative shipping containers utilize dry ice to keep productsfrozen regardless of shipping distance. The cooling blankets we usedin the past were effective only on shorter routes. Shipper boxes havethe potential to expand the reach of our cold supply chain by bring-ing frozen food to more customers without the use of refrigeratedtrucks, which consume considerably more energy. This translates into awider variety of refrigerated products for our customers and a cleanerenvironment for everyone. We are re viewing opportunities to expandthis program to meat and other perishables.

India( Sustainable facilities)

Our Best Price store prototypes in India feature a variety of sustainability-focused technologies, ranging

from LED lighting and energy-effi cientrefrigeration systems to daylight harvesting. These stores also empha-size water conservation byfiltering stormwater runoff from our rooftopsand parking lots through layers of gravel and sand before it flows intothe water table. In addition, we implemented a system to capture andprocess wastewater from our facilities for re-use in such applicationsas irrigation and flushing.

Regional challenges in ethical sourcing*

Some of the more prevalent concerns associated with this region include varying

interpretations of the local law regarding contract workers and the lack of systemsto verify compliance of wage and hiring procedures. Additional challenges includeshortage of labor due to alternate employment opportunities, egregious workinghours, undisclosed subcontracting and nonpayment of overtime premium. Sumangalibonded labor schemes are a challenge in India. We are working with stakeholders,such as the Tirupur Stakeholders Forum in Tirupur, India, where this practice is mostprevalent, to implement additional guidelines on employment practices in factoriessupplying to Walmart.

Bharti Walmart launches supply chain system inPunjabBharti Walmart launches supply chain system in Punjab

By Alkesh Sharma MALERKOTLA: India's Bharti group and the world's largest retailer Walmart Tuesday launched a direct farmproduce sourcing system to streamline the supply chain between farmers and consumers.


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"We are addressing the needs of farm development in India and improving supply chain efficiencies that will bringquality produce at affordable prices to customers. This programme showcases the convergence of farm development,sustainable practices and corporate philanthropy," Raj Jain, managing director and chief executive of Bharti Walmart India, told reporters.

Bharti Walmart India is a joint venture between Bharti enterprises and Walmart stores. It initiated the 'sustainableagriculture programme' in Haider Nagar village near here.

Company officials picked up fruits and vegetables from the fields of nearly 110 farmers and offered them up to 7-10per cent premium over the usual price of the produce.

"We firmly believe that the second green revolution will happen outside the farm through reduction of wastages inthe supply chain between the farm and the end consumer," said Jain.

Besides providing a ready market for the yield, Bharti Walmart experts and crop scientists are providing tips tofarmers to improve the quality and quantity of the produce.

"We educate them about the hazardous effects of various pesticides. Most of the farmers have increased their output by nearly 25 per cent in the last few months. In the coming days, we certainly want to collaborate with more farmersof this village in this initiative," said Jain.

About expansion plans, Jain said: "We are all set to open second Best Price Modern Wholesale cash-and-carry storein Zirakpur in the coming weeks. It will be for the upscale market due to its proximity with Chandigarh and leadinghotels in the region".

The company has a Best Price Modern Wholesale cash-and-carry store in Amritsar.

"There are plans to open around 35 new Bharti Retail's easyday stores and one easyday market in Punjab by the endof this year," he added.

Currently, there are about 35 easyday stores and two easyday markets in Ludhiana and Jalandhar.

As part of the programme, the company has installed seven biogas plants and aims to install 175 more in the villagethis year.

GLOBALEnvironmental compliance

We are committed to preserving our natural resources and achievingfull compliance with all applicable laws and regulations. Our compre-hensive Environmental

Management System (EMS) enables us toproactively identify environmental regulatory requirements for eachof our facilities, while conducting the necessary training, procedures,services and audits.We have identified, documented and associated more than 9,600federal, state and local environmental regulatory requirements withindividual facilities, while tracking obligations for another 16,000permits. In addition, the continual analysis of data captured by our


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Environmental, Health and Safety (EH&S) Compliance Informationsystem allows us to strategically enhance our compliance programsin a sustainable manner. In 2011, Walmart also developed standardized auditing protocols withcontracted environmental service providers to further enhance ourEMS and proactively monitor compliance obligations.Our more than 4,400 retail facilities in the U.S. were the subject of more than 2,000 compliance inspections by environmental regulatoryagencies in 2011. No deficiencies were found in 59 percent of thoseinspections. Minor deficiencies that did not result in a Notice of Violation (NOV) were identified in another 32 percent, while9 percent required corrective action.

Environmental servicesCompliant. Sustainable. Profitable.Running sustainable and compliant programs is the right thing todo for our customers and communities, and has also been proven tobe a competitive advantage for Walmart. Sustainable disposal andtransportation practices have become key incentive components of

performance-based contracts for environmental-related services atstores and clubs. These contracts, which promote sustainabilityand service effi ciencies have been key in developing programs thatstrengthen compliance eff orts by identifying the right solutiontailored to meet specifi c compliance needs. The combination of sustainable practices and rising commodity values has allowedEnvironmental Health & Safety (EH&S) to manage recycling and serviceprograms to leverage costs and generate income. For the first time on


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an annual basis, the revenue generated by these recycling programsexceeded the cost of services.

Waste minimization Aerosol recapping programIn 2011, Walmart, in partnership with SC Johnson, continued thereplacement cap program for Glade aerosols. The caps on thesecans are susceptible to breakage during shipping and from sales floortraffi c. Previously, an aerosol can with a broken or missing cap had tobe managed as waste. With the replacement cap program, we areable to order new caps and return the merchandise to the sales floorwithout adding to the waste stream. This reduced related waste by58 percent since 2010 and has saved approximately 234,000 aerosolsfrom being treated as waste to date.

Walmart U.S. LogisticsIntroducing the Total Safety Culture

When it comes to safety, Walmart U.S. Logistics adds another year toa record of proven success.For eight straight years, Walmart U.S. Logistics recordable injury rateshave been below industry average. This year the entire WalmartU.S. Logistics Network raised the bar with the introduction of anEnhanced Behavior Based Safety Program.The entire rollout will take the network well into FY 14. One of thekey concepts to the program is Actively Caring. Actively Caring ismoving beyond simply caring about others, to acting on that caringor sense of responsibility. This concept teaches our associates tolook after their own safety, and also to look after the safety of their

fellow associates. By implementing this concept, as well as others,the network can achieve a Total Safety Culture.While the network is still early in the implementation of itsEnhanced Behavior Based Safety Program, it did enjoy an acceleratedrate of improvement. The Walmart U.S. Logistics Network saw a25 percent improvement in its recordable injury rate, which is35 percent less than the Bureau of Labor Statistics Warehousing andStorage Industry average. The Walmart U.S. Logistics Network saw aDART rate performance 15 percent lower than the Bureau of LaborStatistics Warehousing and Storage Industry average.Most importantly, our associates are accepting the new EnhancedBehavior Based Safety Program and moving forward with addingto our strong safety culture. The network is excited to see whatthis year holds as we move forward with a long-term strategy forcontinuous improvement.


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