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Walmart in talks with Indian manufacturers to source mobile accessories, IT hardware


Walmart is in talks with leading Indian electronics contract manufacturers to procure white label electronic products such as IT hardware, mobile accessories, wearables and more, to sell them in the US under its sub-brands.


Several industry executives familiar with the matter told ET that manufacturers such as Dixon Technologies and Optiemus Electronics are in the fray for orders amidst the US retail major’s drive to shift sourcing, especially on the electronics side, to India.

“They have been scouting a lot in India to figure out what the capabilities of the manufacturers are,” one of the executives, who did not wish to be named, told ET.


Walmart, which owns majority stakes in Flipkart and PhonePe, is looking to source a wide range of products such as cables, chargers, screen protectors, home appliances, hearables, wearables, tablets, laptops, and lighting.


Employees of Walmart have met multiple contract manufacturers, inquiring about their capacities, processes, and testing methods, the executive said.


Responding to an email, a Walmart spokesperson confirmed the development stating that Walmart has been "quite public about our plans to source from India".


ET’s emails to Indian contract manufacturers Dixon, Optiemus Electronics, Jaina Group and Bhagwati Products seeking comments did not elicit a response till press time.


India is already one of Walmart’s top sourcing markets, with annual exports worth $3 billion, as of 2020. That year, Walmart had said that it plans to triple its export of goods from India to $10 billion each year by 2027.


"It will be a good starting point for Indian manufacturers to make inroads in the US, and the export potential is huge," the first executive said, adding that Walmart is looking to reduce its reliance on Chinese suppliers amidst heightened geopolitical tensions between the US and China.


In the short term, Walmart will look to source products already being assembled in India. "Slowly as procurement picks up, the component makers are also expected to start making in India,” the executive said.


A second executive said that the sourcing will begin in phases.


“Walmart approaches manufacturers which already make the products it intends to source. For instance, if a manufacturer has an in-house design of a laptop it makes for other brands, Walmart will come in to inspect if it meets their stringent quality standards,” the executive said.


But meeting the quality standards will be the biggest challenge for Indian manufacturers, the executive said.


Read More at https://economictimes.indiatimes.com/industry/cons-products/electronics/walmart-is-in-talks-with-indian-manufacturers-to-source-mobile-accessories-it-hardware/articleshow/98928185.cms

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