Walmart Flipkart deal aims to create 10 million jobs in India
Doug McMillon, CEO, Walmart, says that the Flipkart-Walmart deal has the capacity for creating ten million jobs in India. These jobs is includes both direct and indirect jobs. The US-based retail giant Walmart announced that it was buying 77 percent stake, for $16 billion, in Flip kart which is a major Indian e-commerce company.
Binny Bansal Group CEO Flip kart said that Walmart can learn something from Flip kart like the payments play. He also stated that there is a plan of listing Flip kart. There is a great deal of enthusiasm in investors like Accel, Tiger Global, and Tencent regarding the IPO. Furthermore IPO is a sure method in unlocking the value of the company.
This deal will permit both retailers to promote the expertise of each other. It will go a long way to help the economy in India and create jobs. Moreover, it will increase the income of farmers and promote initiatives like ‘Make in India’.
This is the gateway for Walmart in India, and it will continue to progress on the path of creating sustained economic growth in sectors like food, agriculture and retail. All investments in the future will extend support to national initiatives and benefit the country.
Promoting supply chains
The job creation will happen by promoting supply chains and several commercial opportunities. The company will also focus on creating new direct jobs by investing in India.
This collaboration will provide overall support to many small businesses and procure directly from them. Moreover, it will support farmers also and serve as a huge source of inventory locally. Additionally there will be a focus on input into the supply chain, and cold storage. The wastage of perishable agricultural products will also be checked.
Furthermore Walmart will become a partner with several grocery shop owners in the country and assist them. The focus areas will be reforming the retail practices, and adopting technologies dealing in digital transactions. Walmart also promised to provide several opportunities to the ‘Make in India’ of the government.
There will be a $2 billion equity funding that the Flip kart can use for its future growth. Yet another feature is that both the companies will have separate brands and operating structures in the future.
In other developments, the co-founder Sachin Bansal has chosen to opt out after selling 5.2 percent share to WalMart but Binny Bansal remains on board having a 5.1 percent share. Moreover, Softbank, which earlier had 20.8 percent share, also chose the exit route. Finally the deal awaits approval from regulatory authorities.