Good for retail industry: Atul Chaturvedi on Walmart-Flipkart deal

Galtero Lara
May 17, 2018

However, the company's total expenses shot up by 15 percent from 13,722 crores during FY16 to 15,813 crores.

The company has therefore trimmed the losses by 55 percent in FY17 in comparison to the previous fiscal.

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While this is a major achievement for the e-commerce firm, which was encountering a period of sluggishness due to fierce competition, it would look to further consolidate its business now that it has the backing of Walmart. "Therefore, being the controller of the Company, Walmart may use the data and other information as per its will and wish and the possibility of compromising the data cannot be ruled out", alleged Khandelwal.

The $16 billion dollar deal to acquire at 77 per cent stakes in Flipkart is slated to take the company's valuation to approximately $21 billion. Experts considered it to be a great strategy by Walmart to enter the Indian market, which Morgan Stanley estimates to be worth $200 billion in a decade's time, and also at the same time compete with Amazon, which continues to be at a dominant spot in the category. He demanded that government should immediately frame a national policy for e commerce and constitute a regulatory authority to regulate and e commerce business in India. However, it is certain that Flipkart will now go all guns blazing to clip customers from Amazon's basket. As things stand now, Amazon has made deep inroads in the Indian market, with several customers preferring the U.S. brand over Flipkart.

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