Putting an end to months-long anticipation over Walmart-Flipkart deal, world’s biggest multi-brand operator Walmart Inc bought 77% stake in Bengaluru-based Flipkart for $16 billion on Wednesday.
The biggest buyout by the Arkansas-based Walmart will likely serve as a catalyst in Prime Minister Narendra Modi’s ‘Make in India’ initiative and job creation, as articulated by the retail giant itself in its statement. According to Walmart, the multi-billion dollar investment in India’s e-commerce giant Flipkart is committed to sustained job creation and investment in India.
“The investment will help accelerate Flipkart’s customer-focused mission to transform commerce in India through technology and underscores Walmart’s commitment to sustained job creation and investment in India, one of the largest and fastest-growing economies in the world,” Walmart said in an SEC filing.
Pointing out at the likelihood of series of advantages on the big-scale partnership with India, Walmart stated that “the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments will support national initiatives and will bring sustainable benefits to the country”.
Big Boost to Modi’s re-imagined India
(Edited excerpts from Walmarts SEC filing with regard to acquisition of Flipkart in India)
Job creation: Following the mega-deal with Flipkart, plans would create jobs through the development of supply chains, commercial opportunity and direct employment.
Boost to Modi’s ‘Make in India’: Walmart will support small business and ‘Make in India,’ through direct procurement as well as increased opportunities for exports through global sourcing and eCommerce. Among other initiatives, Walmart will partner with Kirana owners and members to help modernize their retail practices and adopt digital payment technologies.
Relief for farmers: Walmart will support farmers and develop supply chains through local sourcing and improved market access.
Check on wastage: Walmart claims to reduce food waste by improving waste management practices and investing in supply chains, especially cold storage.
“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, President and CEO, Walmart. “Our investment will benefit India providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs,” Doug McMillon added.