US retail giant Walmart is desperate to takeover the Indian market in retail and online segments. But will it go the extra mile to fill a critical gap in storage capacity for agricultural produce?
IN MAY 2018, Walmart picked up 77 percent stake in Indian e-commerce giant Flipkart for us $16 billion. Market analysts attribute the move to Walmart’s ambition to capture the Indian online market. As per the US-based advisory firm Forrester Research, the Indian online market is one of the fastest growing, with sales amounting to $21 billion last year. Of this, Flipkart holds a market share of 32 percent compared to Amazon’s 31 percent. But when it comes to e-commerce sales, Walmart is far behind. Globally, the company’s presence in this space is negligible, with only $15 billion of its $500 billion annual sales coming from this segment. Perhaps to rectify this, Walmart has promised to pump in $2 billion (about ₹13,000 crore) as fresh equity in Flipkart.
With Walmart going the extra mile, there is a point to be noted: Analysts say the company, which has world-class expertise in cold chains and warehouses, can help the Indian agriculture markets grow and give the much-required boost to Indian farmers reeling under volatility and low prices. Even the Walmart press release promises support to small businesses and development of cold storage to reduce food wastage. “Our investment will benefit India providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs,” says Walmart president and chief executive officer Doug McMillan.
This story is from the June 16, 2018 edition of Down To Earth.
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This story is from the June 16, 2018 edition of Down To Earth.
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