Published: Fri, May 11, 2018
Money | By Hannah Jacobs

Walmart to open 50 new stores in India in 4-5 yrs

Walmart to open 50 new stores in India in 4-5 yrs

"It is much more hard for the government to control and regulate foreign owned platforms and all indigenous players will have no value if a foreign company runs the platform", Khandelwal has claimed.

The US bricks and mortar retail giant bested its US counterpart Amazon after the ecommerce firm reportedly made a competing offer to acquire Flipkart that ultimately failed. One of the sources mentioned above said, "Walmart can appoint three directors and chief financial officers on the 10-member board of the Indian company".

As far as the law is concerned, except for Sachin Bansal and Binny Bansal's stakes, the majority of the shares sold to Walmart belong to non-resident shareholders. McMillon has led Walmart's efforts to boost global business.

The story thus far includes a narrative of offline versus online, and the pressure that the offline retailers have felt due to the billions of dollars that the online commerce businesses, Flipkart, found at their disposal nearly entirely because deep-pocketed foreign investors backed them - from New York's Tiger Global Management to Japan's Softbank Group Corp. Walmart, with a vast experience in the USA market, will look to revolutionise the Indian retail with low prices and a vast variety of consumer goods.

He further went on to say that Walmart is among the world's leading importers of Chinese goods, and this act will destroy small and medium enterprises.

The experience of other countries is that their domestic companies were sold out to bigger MNCs, and all over the world giants like Walmart and Cosco have taken over, the SJM co-convener said.

Hundreds of Flipkart employees will find themselves to be newly minted millionaires, thanks to the $500 million the company has reserved for ESOP (Employee stock options) payouts. Therefore, being the controller of the Company, the Walmart may use the data and other information as per its will & wish and the possibility of compromising the data cannot be ruled out. By buying 77% stake in Flipkart Group for $16 billion, Walmart valued the company at about $21 billion. "We were a group of eight friends from IIT Delhi and we used to hang out together all the time and were the best of friends", said Binny, recalling the Flipkart journey. "As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market".

Accel India operates under US-based Accel's banner but is managed and run independently.

The Bansals of Filpkart may have clinched the biggest deal in e-commerce space, but the jaw-dropping $16-billion transaction left co-founders Sachin and Binny "emotional" and "sad". There are also apprehensions that the entry of the American retail behemoth will only benefit venture capitalists, investors and promoters but not retail traders.

Like this: