Future Group stocks lap up Biyani cues, rally up to 17%

Ismael LynchMay 12, 2018

And in March, Walmart said it would expand its home grocery delivery to 100 USA cities.

"While Amazon has AmazonNow, Flipkart would like to tap Walmart's supply chain expertise in building up its Grocery offerings".

F Flipkart was founded in 2007 by the former Amazon executive Sachin Bansal along with its IITian batch mate Binny Bansal. That includes its decision last month to sell its British unit, Asda, which primarily operated a chain of traditional supermarkets.

According to the deal, Walmart's investment is in Flipkart's online marketplace platform, where foreign investment is allowed.

Flipkart had net sales of $4.6 billion in its latest fiscal year. Amazon clearly emerged the victor, with its revenue growing at a compounded annual growth rate of 28 percent. "Plans are on track", Walmart India president and CEO Krish Iyer said at the roundtable.

Since the profit is made from shares that were held for more than two years, it would attract a long-term capital gains tax of 20 per cent plus surcharge and education cess, effectively wiping away a fourth of the profit.

The investment will help accelerate Flipkart's mission to transform ecommerce in India through technology and is one in the eye for Amazon, a would be early suitor for FlipKart.

The Bangalore-based company has acquired a string of other companies in recent years, from fashion e-commerce company Myntra to mobile payment firm PhonePe.

Amazon had been considering making its own offer for the Indian firm, which has more than 100 million users. Flipkart's logistics arm eKart operates in over 800 cities and makes as many as 5,00,000 deliveries a day. India's retail market, online and offline together, is expected to reach $1 trillion by 2020, according to a 2017 report from industry body Assocham.

At its Best Price wholesale stores in the country, Walmart sells everything from fast-moving consumer goods to furniture to other retailers and institutions.

Walmart will also bring in vast offline organised retail expertise, which will help Flipkart create a complementary online-offline business which in turn can help handset brands expand the market by going into the smallest towns and cities. Kalyan Krishnamurthy will continue to be the CEO of the company, while co-founder Binny Bansal will be the Group CEO of Flipkart. The acquisition surpasses Walmart's $10.8 billion deal to buy Britain's Asda in 1999 and its acquisition two years ago of online retailer Jet.com for more than $3 billion.

Although many sellers that TechCircle spoke to are excited about the global market opportunities and sourcing afforded by the Walmart deal, some are equally wary of the USA retailer's global strategy to rebrand and sell white-label products, and to aggressively supply its own private labels. "We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India's diverse, domestic market", the company stated.

A player like Walmart, which can keep pumping patient capital for a long period of time, could be the flawless bulwark against the might of Amazon.

Small businesses and traders are considered an important political constituency of the BJP.

Related Articles:

« Previous article
Next article »

Popular Pages

Gunners target talks with Juve boss Allegri
With Juventus on the verge of making yet more history, the team's coach might just be looking overseas for more challenges. Defender Andrea Barzagli is similarly unprepared to rest on his laurels with two games of the league season remaining.

SpaceX will try again to launch its newest Falcon 9 rocket
That's more than half of the estimated overall $62 million price of the Falcon 9, according to various trade publications. So far, the first-stage boosters have been recycled once, for a total of two flights apiece.

India Calls for Dialogue to Resolve Iran Nuclear Deal Dispute
Through his decision, Trump called on his Cabinet to re-impose "all" US sanctions that were lifted or waived under the agreement. Now it's up to the Iranians and other countries involved in the deal to help the world stave off that unnerving possibility.

Trump blew up at homeland security chief over border security
Still, Nielsen drafted a resignation letter earlier this week but did not submit it, according to a source. The Times report claimed that she was "miserable" in her job according to a "person close to Ms.

Trump aide Kelly Sadler says McCain 'doesn't matter...he's dying anyway'
Charles Payne, the Fox host who interviewed McInerney, apologized Thursday for not challenging the "Songbird John" claim. Kelly Sadler participates in a board together with Ivanka Trump at the White House in March of the year.

Wenger tips Arsenal for Premier League glory next season
The Frenchman would not be drawn on his future after the game, instead preferring to focus on the positives of his side's performance.

Predators' Fisher out for Game 7 against Jets with injury
Cheveldayoff and Wheeler both said they just had a "good feeling" about the Jets on Thursday morning. In a nutshell, Nashville's vaunted defense had no answer for Winnipeg's rocket-fuelled offense.

Skechers Files Lawsuit Against Adidas Amid FBI College Basketball Investigation
Today, the Ninth Circuit Court of Appeals upheld an earlier injunction prohibiting the sale of the Skechers Onix shoe. Skechers USA Inc.is taking aim at Adidas America Inc. for its allegedly questionable basketball recruitment tactics.

'Solo: A Star Wars Story': Han Meets Lando In Latest Clip
A lot of new content is on the way to Star Wars Battlefront II on PS4, Xbox One , and PC. In addition, Han Solo season will add a new custom Starfighter mode to the Arcade.

Rita Ora's long awaited sizzling single 'Girls' out today
Rita Ora is bringing the girl power in her new single " Girls " which features Bebe Rexha , Cardi B and Charli XCX . The 27-year-old has previously spoken out about how she wrote the song based on her own sexual experiences.