FM Sitharaman begins three-day visit to Nagaland to inaugurate projects, engage with communities

Delhi Red Fort Blast: ‘Exemplary punishment will send a strong global message,’ says Amit Shah 

Explained: What Draft Seeds Bill means for farmers and seed sector

‘Lots and lots of coffee’: Groww employee recalls team’s hustle before IPO, CEO Lalit Keshre’s old email resurfaces

Hero MotoCorp Q2 Results: Top and bottom lines grow 16%, margin expands by 55 bps—Key takeaways

Gold and Silver Prices This Evening: Yellow metal rises by nearly Rs 1,000, white metal surges by about Rs 1,500 — Should investors buy the dip?

Stock to Watch Tomorrow: Muthoot Finance Q2 profit jumps 87%, net interest income up 58%

Delhi CM Rekha Gupta flags off DTC's inter-state bus service to Sonipat

Biocon jumps 10% in two days after strong Q2 results; brokerages see up to 18% upside ahead; check price target

India, Hungary discuss stronger partnership, push for early India-EU trade pact

The largest offline retailer Walmart has shrugged off the buzz about an exit from its newly bought e-commerce major Flipkart in India. There were many speculations which are doing the rounds stating that Walmart may decide to end the deal with Flipkart, due to Indian government’s new FDI policy on e-commerce. However, it is not Flipkart alone that is affected, in fact, Jeff Bezos led Amazon too faces similar hurdles. 
Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia &amp; Canada said this, "Walmart’s and Flipkart’s commitment to India is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country."
Earlier, a note, 'Assessing Flipkart Risk to Walmart EPS', Morgan Stanley had generated much buzz by saying that an exit from Flipkart by Walmart is not completely out of the question after the Indian ecommerce market turned more complicated. This was reported by Economic Times.
Explaining further, Morgan Stanley said that there is a precedent for an exit, considering  Amazon retreated from China in late 2017 after seeing that the model no longer worked for it.
In Morgan’s view, post new FDI policy, Flipkart will have to cut 25% of its product base from its site. If this takes place, it would be smartphones and electronics that will suffer the most due to necessary changes to supply chains and existing exclusivity deals.
<blockquote data-lang="en"><a href="https://twitter.com/hashtag/ResultsOnZB?src=hash&amp;ref_src=twsrc%5Etfw">#ResultsOnZB</a> | कैसे रहेंगे <a href="https://twitter.com/hashtag/IGL?src=hash&amp;ref_src=twsrc%5Etfw">#IGL</a> के दिसंबर तिमाही नतीजे, जानिए संदीप ग्रोवर से।<a href="https://twitter.com/sandeepgrover09?ref_src=twsrc%5Etfw">@sandeepgrover09</a> <a href="https://t.co/PckjOyod3g">pic.twitter.com/PckjOyod3g</a>
— Zee Business (@ZeeBusiness) <a href="https://twitter.com/ZeeBusiness/status/1093082988823363584?ref_src=twsrc%5Etfw">February 6, 2019</a></blockquote>
<script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Berghe responded to Zee Business Online by saying, “We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart’s global markets.”
Walmart last year in May, gave the world its largest e-commerce deal by buying Flipkart for about $16 billion for an initial stake purchase of 77%. This is by far, the biggest FDI deal for India. 
Under the new policy, Indian government’s restriction focuses on protecting India’s unorganized retail sector that, due to Amazon and Flipkart policies, does not have the advantage of purchasing on a large enough scale to offer hefty discounts.
New FDI rule states that, if a vendor makes over 25% of inventory from the marketplace or group firms, then that inventory of a seller and vendor will be controlled by marketplace. This will not allow sellers on Flipkart and Amazon, to make bulk purchases from their wholesale units and will ensure all the massive discounts for buyers are discontinued.

The largest offline retailer Walmart has shrugged off the buzz about an exit from its newly bought e-commerce major Flipkart in India. There were many speculations which are doing the rounds stating that Walmart may decide to end the deal with Flipkart, due to Indian government’s new FDI policy on e-commerce. However, it is not Flipkart alone that is affected, in fact, Jeff Bezos led Amazon too faces similar hurdles. Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia &amp; Canada said this, "Walmart’s and Flipkart’s commitment to India is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country."Earlier, a note, 'Assessing Flipkart Risk to Walmart EPS', Morgan Stanley had generated much buzz by saying that an exit from Flipkart by Walmart is not completely out of the question after the Indian ecommerce market turned more complicated. This was reported by Economic Times.Explaining further, Morgan Stanley said that there is a precedent for an exit, considering  Amazon retreated from China in late 2017 after seeing that the model no longer worked for it.In Morgan’s view, post new FDI policy, Flipkart will have to cut 25% of its product base from its site. If this takes place, it would be smartphones and electronics that will suffer the most due to necessary changes to supply chains and existing exclusivity deals.#ResultsOnZB | कैसे रहेंगे #IGL के दिसंबर तिमाही नतीजे, जानिए संदीप ग्रोवर से।@sandeepgrover09 pic.twitter.com/PckjOyod3g— Zee Business (@ZeeBusiness) February 6, 2019Berghe responded to Zee Business Online by saying, “We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart’s global markets.”Walmart last year in May, gave the world its largest e-commerce deal by buying Flipkart for about $16 billion for an initial stake purchase of 77%. This is by far, the biggest FDI deal for India. Under the new policy, Indian government’s restriction focuses on protecting India’s unorganized retail sector that, due to Amazon and Flipkart policies, does not have the advantage of purchasing on a large enough scale to offer hefty discounts.New FDI rule states that, if a vendor makes over 25% of inventory from the marketplace or group firms, then that inventory of a seller and vendor will be controlled by marketplace. This will not allow sellers on Flipkart and Amazon, to make bulk purchases from their wholesale units and will ensure all the massive discounts for buyers are discontinued.  

Walmart last year in May, gave the world its largest-ever e-commerce deal by buying Flipkart for about $16 billion for an initial stake purchase of 77%. 

Walmart shrugs off &#039;Flipkart-exit&#039; buzz; says, &#039;commitment to India is deep and long term&#039;

Walmart shrugs off 'Flipkart-exit' buzz; says, 'commitment to India is deep and long term'

news-walmart-shrugs-off-flipkart-exit-buzz-says-commitment-to-india-is-deep-and-long-term-84463

The largest offline retailer Walmart has shrugged off the buzz about an exit from its newly bought e-commerce major Flipkart in India. There were many speculations which are doing the rounds stating that Walmart may decide to end the deal with Flipkart, due to Indian government’s new FDI policy on e-commerce. However, it is not Flipkart alone that is affected, in fact, Jeff Bezos led Amazon too faces similar hurdles.  Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia Canada said this, Walmart’s and Flipkart’s commitment to India is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country. Earlier, a note, Assessing Flipkart Risk to Walmart EPS, Morgan Stanley had generated much buzz by saying that an exit from Flipkart by Walmart is not completely out of the question after the Indian ecommerce market turned more complicated. This was reported by Economic Times. Explaining further, Morgan Stanley said that there is a precedent for an exit, considering  Amazon retreated from China in late 2017 after seeing that the model no longer worked for it. In Morgan’s view, post new FDI policy, Flipkart will have to cut 25% of its product base from its site. If this takes place, it would be smartphones and electronics that will suffer the most due to necessary changes to supply chains and existing exclusivity deals. #ResultsOnZB | कैसे रहेंगे #IGL के दिसंबर तिमाही नतीजे, जानिए संदीप ग्रोवर से।@sandeepgrover09 pic.twitter.com/PckjOyod3g — Zee Business (@ZeeBusiness) February 6, 2019 Berghe responded to Zee Business Online by saying, “We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart’s global markets.” Walmart last year in May, gave the world its largest e-commerce deal by buying Flipkart for about $16 billion for an initial stake purchase of 77%. This is by far, the biggest FDI deal for India.  Under the new policy, Indian government’s restriction focuses on protecting India’s unorganized retail sector that, due to Amazon and Flipkart policies, does not have the advantage of purchasing on a large enough scale to offer hefty discounts. New FDI rule states that, if a vendor makes over 25% of inventory from the marketplace or group firms, then that inventory of a seller and vendor will be controlled by marketplace. This will not allow sellers on Flipkart and Amazon, to make bulk purchases from their wholesale units and will ensure all the massive discounts for buyers are discontinued.   

Walmart last year in May, gave the world its largest-ever e-commerce deal by buying Flipkart for about $16 billion for an initial stake purchase of 77%. 

Walmart shrugs off 'Flipkart-exit' buzz; says, 'commitment to India is deep and long term'

Related Topics

RECOMMENDED

FM Sitharaman begins three-day visit to Nagaland to inaugurate projects, engage with communities

Delhi Red Fort Blast: ‘Exemplary punishment will send a strong global message,’ says Amit Shah

Explained: What Draft Seeds Bill means for farmers and seed sector

‘Lots and lots of coffee’: Groww employee recalls team’s hustle before IPO, CEO Lalit Keshre’s old email resurfaces

Hero MotoCorp Q2 Results: Top and bottom lines grow 16%, margin expands by 55 bps—Key takeaways

Gold and Silver Prices This Evening: Yellow metal rises by nearly Rs 1,000, white metal surges by about Rs 1,500 — Should investors buy the dip?

Stock to Watch Tomorrow: Muthoot Finance Q2 profit jumps 87%, net interest income up 58%

Delhi CM Rekha Gupta flags off DTC's inter-state bus service to Sonipat

Biocon jumps 10% in two days after strong Q2 results; brokerages see up to 18% upside ahead; check price target

India, Hungary discuss stronger partnership, push for early India-EU trade pact

Top News

FM Sitharaman begins three-day visit to Nagaland to inaugurate projects, engage with communities

Delhi Red Fort Blast: ‘Exemplary punishment will send a strong global message,’ says Amit Shah

Explained: What Draft Seeds Bill means for farmers and seed sector

‘Lots and lots of coffee’: Groww employee recalls team’s hustle before IPO, CEO Lalit Keshre’s old email resurfaces

Hero MotoCorp Q2 Results: Top and bottom lines grow 16%, margin expands by 55 bps—Key takeaways

Gold and Silver Prices This Evening: Yellow metal rises by nearly Rs 1,000, white metal surges by about Rs 1,500 — Should investors buy the dip?