McMillon, accompanied by 15 top executives of Walmart, also told the employees that India is a “very big and crucial market” for Walmart, and Flipkart.
The change in e-commerce policy came into effect from February 1. It bars e-commerce companies from selling products through firms in which they have a stake.
While Amazon may suffer double the loss in three years, Walmart could go through a loss of $280 million from Flipkart.
The new FDI rules may require Flipkart to remove as much as 25 percent products from its platform including smartphones and electronics that constitute a bulk of sales, said Morgan Stanley.
Modi’s poll- driven moves, Ambani beat Bezos’s plans to dominate Indian e- commerce market.
Online marketplaces must treat all vendors equally by providing the same terms, India’s trade ministry said Wednesday. In practice, this means barring e-commerce companies from forcing a seller to feature products exclusively on their platforms and limiting ownership or control over the marketplace’s inventory. The government says the changes will promote fair trade and curb foreign companies’ influence in setting domestic prices.
With both founders of Flipkart off the shore, the whole responsibility of administration has come down to Walmart’s shoulders with Kalyan Krishnamurthy as the CEO.
The subsequent chain of events shows that Walmart chose to prioritize the closing of the Flipkart deal over disclosing the probe into Binny’s conduct.
Binny Bansal was ousted from Flipkart.