Walmart disappointed with changes in FDI policy for e-commerce; says has made 'adjustments' and moving forward

India represents a great opportunity for the retailing major, Walmart Executive Vice President and Chief Financial Officer Brett Biggs said.

FP Staff March 07, 2019 09:13:01 IST
Walmart disappointed with changes in FDI policy for e-commerce; says has made 'adjustments' and moving forward
  • India represents a great opportunity for the retailing major, Walmart Executive Vice President and Chief Financial Officer Brett Biggs said.

  • Last month, the government barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes

  • Last year on 18 August, Walmart had completed acquisition of 77 percent stake in Flipkart for about $16 billion

The world's largest retailer Walmart said it was disappointed with the changes in FDI policy for e-commerce in India but it has made "adjustments" and is moving forward. Despite such changes, India represents a great opportunity for the Bentonville-based retailing major, Walmart Executive Vice President and Chief Financial Officer Brett Biggs said in a conference call.

"It's disappointing that you have a law like that changed that quickly, but we have made the adjustments and we are moving forward," Briggs said, according to a PTI report.

"When you make investment in India, note things are going to change. They did the first time we were in India and they will again, we know that. We knew that going into an investment and you have just got to work their way through. And so, we are going to have real changes, we know that," he added.

Tightening norms for e-commerce firms having foreign investment, the government last month barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product prices.

"We'll have legislation changes, we know that and you work your way through it. But long-term, this is a great opportunity for Walmart," Briggs said.

The revised policy on FDI in online retail, issued by the commerce and industry ministry, also said these firms have to offer equal services or facilities to all its vendors without discrimination.

Walmart disappointed with changes in FDI policy for ecommerce says has made adjustments and moving forward

Walmart stores. Representational image. Reuters.

A recent report by global consultancy firm Morgan Stanley had hinted that Walmart may quit Flipkart as the new foreign direct investment (FDI) policy came into effect, which would lower its profitability in the long run.

Morgan Stanley, in a report titled 'Assessing Flipkart Risk to Walmart EPS' dated 4 February, claimed that "an exit is likely, not completely out of the question, with the Indian e-commerce market becoming more complicated."

“Walmart's and Flipkart's commitment to India is deep and long-term. Despite the recent changes in regulations, we remain optimistic about the country,” said Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia and Canada, a PTI report said.

He further added, "We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart's global markets."

Last year on 18 August, Walmart had completed acquisition of 77 percent stake in Flipkart for about $16 billion (Rs 1.05 lakh crore), a deal which gave the US retailer access to the Indian e-commerce market.

--With PTI inputs

 

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Mivi launches Collar 2 bluetooth earphones with support for super charging at Rs 1,399
News & Analysis

Mivi launches Collar 2 bluetooth earphones with support for super charging at Rs 1,399

As per Mivi, charging Collar 2 for just 10 minutes gives listeners 10 hours of playtime.

Vaio India launch highlight: Vaio launches new SE14, E15 laptops in India with AMD Ryzen CPU
News & Analysis

Vaio India launch highlight: Vaio launches new SE14, E15 laptops in India with AMD Ryzen CPU

Till 2014, Vaio laptops were branded as Sony Vaio in India and the rest of the world, until Sony sold off the Vaio PC business.

Vaio to launch new laptops in India today at 1 pm IST: All we know so far
News & Analysis

Vaio to launch new laptops in India today at 1 pm IST: All we know so far

Flipkart has also created a microsite ahead of the launch of the new Vaio laptops in India.