Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
May 20, Sunday 2018 7:35 PM       

       HEADLINES: Three Keralites killed in Tamil Nadu accident                                              Chengannur poll will assess administration, says VS                                              Woman shot dead in Kozhikode                                              Rare viral infection: Precautionary measures taken, says minister                                              LDF favours upper castes, says Vellappally                                              After Karnataka, Telangana one of focus states for BJP                                              Railways' ode to Gandhi: No non-vegetarian food on Oct 2                                              Global terrorist Hafiz Saaed's security restored in Pakistan                                              Eight killed in Texas school shooting                                              Airliner with 110 aboard crashes in Cuba, 3 survivors                                              Afghan cricket stadium attack leaves 8 dead, 45 wounded                                              Royal wedding 2018: 16th royal wedding in Windsor Castle                                              IPL ’18: KKR beat SRH by 5 wickets, enter play-offs                                              Kaumudi Facebook
       BUSINESS Next Article: Merck Foundation supports training of 30 future oncologists in Africa  
       Flipkart deal good for India: Walmart CEO
 
         Posted on :18:11:53 May 10, 2018
   
A A
       Last edited on:18:11:53 May 10, 2018
         Tags: Flipkart, Walmart, India, Doug McMillon
 

NEW DELHI: World's largest retailer Walmart Inc Thursday tried to assuage concerns around its USD 16 billion takeover of Flipkart, saying the deal is good for the country as it will help create millions of jobs over time and help the economy through local sourcing of goods by the company.

Walmart chief executive Doug McMillon played down not being able to meet either Prime Minister Narendra Modi or any senior minister after announcing the world's biggest e-commerce deal, saying he has had meetings with officials in the past and would have them in future as well.

He saw "no trouble" in getting regulatory approval needed from the Competition Commission of India for the deal to buy 77 per cent stake in Flipkart.

"It is pretty clear that this (deal) is good for customers and would create jobs and help society," he said at a select media roundtable here.

Asked about 'icy demeanour' of the government in him not being able to meet the Prime Minister, and the Commerce Minister Suresh Prabhu's changing plans at the last moment, he said he did not take the events as cold reception.

"I didn't really take it that way," he said. "We deal with the government at all kinds of levels all the time... we have met before and I am sure will meet again."

Asked specifically if an appointment with Prime Minister was indeed sought, he said Walmart is not new to the country.

"That (meeting) is not the most important thing. We don't need a photo-op," he said.

Soon after the deal was announced yesterday, RSS-affiliate Swadeshi Jagran Manch alleged that Walmart was "circumventing" rules for a "back-door entry" into India and sought Prime Minister's intervention to safeguard "national interest."

"This will further eliminate small and medium businesses, small shops, and opportunity to create more jobs. Most of these small entrepreneurs are already battling for their existence; entry of Walmart will further create problems for them," the co-convenor of the manch, Ashwani Mahajan said in a letter to the prime minister.

McMillon, however, said he saw no problems in getting support for the deal. "I haven't had any concern about support and I think this investment is good for the country and people generally realize that."

On job creation, he said while it is difficult to put a precise estimate to jobs investment in e-commerce space will create, third-party analysis shows that it can generate millions of direct and indirect employment.

"There is an opportunity over a period of years to generate another 10 million jobs. I don't want to put a timeline but we have analysis to show that," he said.

The jobs would be created not just in the company but with the suppliers who sell their products on the Flipkart platform.

He said Walmart buys more than 90 per cent of goods locally in every country where it runs stores and e-commerce business.

"We do that because lead times are shorter... it also helps create jobs. So this ecosystem built up around our business helps. Make in India is something exciting to us," he said.

He said Flipkart would be run as a board managed company with Walmart acting as a resource centre.

Flipkart co-founder Binny Bansal said he saw great synergies in the two companies and the deal would be a "watershed movement for start-up businesses", helping bring global focus on India.

On taxation, Walmart CEO said the company is working with all of the investors to ensure they are more compliant.

On taking Flipkart outside India, Bansal said India itself presents a very huge opportunity where the company was growing very rapidly.

"So we will continue to focus and stay invested and growing in this market (India) for now. For us the bigger focus is to build around the e-commerce ecosystem that we have built rather than taking Flipkart to newer market," he said, adding that startups and e-commerce are to two big engines of growth for the Indian economy.

The company would continue to scout for capability driven acquisitions but hasn't earmarked a budget for it.

A A
       BUSINESS
Next Article: Merck Foundation supports training of 30 future oncologists in Africa
 
 
BUSINESS HEADLINES
Petrol, diesel touch all-time highs as oil companies hike rates  
PriceMap offers India's first product and price discovery platform for offline retail  
Birla Corporation, EBIDTA  
Despite challenging times, global business growth is on the rise, finds Epicor  
Despite challenging times, global business growth is on the rise: Epicor  
Sensex sinks 300 pts to close below 35k-mark  
Petrol, diesel prices skyrocket  
Horlicks creates a new Guinness World Record for making largest glass of milkshake  
April exports jump 5.17% to $25.91 bn, imports rise 4.6%  
Sensex tanks 239 pts in nervous trade  
Won't apply for top job at Bank of England: Raghuram Rajan  
Sensex climbs 122 pts in early trade  
Andhra FM to meet President over 15th Finance Commission's ToR tomorrow  
India's economic expansion to boost mining: President  
Netflix to invest 85% spending on original content  
PNB reports Rs. 13,416.91 Cr. loss in Q4  
K'taka poll results lifts Sensex above 430 points, Nifty above 10,900  
Sensex zooms 260 pts as BJP takes lead in K'taka  
Petrol, diesel prices hiked after 19-day pre-poll hiatus  
Sensex opens higher despite weak macro data  
Air India records 20% growth in revenue  
Demonetisation a complex issue, RBI, Nepal Rashtra Bank in talks to resolve it: Foreign Secretary  
Worked hard to earn 10% stake in UAE oilfield: Pradhan  
India's growth will accelerate to 7.3%: Fitch  
CCI calls for uniform threshold for merger review control  
 
Will Kumaraswamy be able to form a stable government in Karnataka?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy