Home / Knowledge / News / Apparel/Garments / Walmart-Flipkart deal faces opposition from traders
Walmart-Flipkart deal faces opposition from traders
May '18
Walmart’s deal with Flipkart to acquire 77 per cent stake in the Indian e-commerce website is facing opposition from traders, while industry body ASSOCHAM has termed it as a success of Indian start-ups. The Confederation of All India Traders (CAIT) believes that the deal is Walmart’s attempt to control and dominate the retail trade in India via e-commerce.

Swadeshi Jagran Manch (SJM) an affiliate of RSS said in a letter to the Prime Minister that that the American retailer is circumventing rules to make a back-door entry in India. It added that the deal could create problems for SMBs, small shops and small entrepreneurs, who are already facing problems.

Retailers Association of India (RAI) said that e-retail companies have been violating FDI policy for marketplaces in India, according to media reports.

Walmart’s digitally powered e-channel will vitiate the retail and e-commerce market, resulting in an uneven level playing field, said CAIT in a statement. The deal will only benefit investors, venture capitalists and promoters.

Praveen Khandelwal, secretary general of CAIT, added that a national policy for e-commerce should immediately be framed and a regulatory authority should be constituted to regulate e-retail business in India. He also said that until the authority is constituted, the government should scrutinise the deal.

RAI has also asked the government to ensure complete adherence to the FDI policy of India. E-commerce companies are directly and indirectly offering discounts, thus creating an uneven level playing field.

On the other hand,, ASSOCHAM secretary general D S Rawat said that is great that an Indian start-up has fetched an enterprise valuation of $21 billion, making the Walmart-Flipkart deal the largest FDI in India.

The deal presents India as an attractive investment destination and proves the maturity and viability of the start-ups and e-commerce sector of India, said Lalit Bhasin, senior vice president of Indo-American Chamber of Commerce (IACC).

As for the PHD Chamber of Commerce and Industry, it said that this deal will lead to new opportunities in the e-commerce sector and its growth.

Walmart will pay approximately $16 billion for an initial stake of approximately 77 per cent in Flipkart, subject to regulatory approval in India. The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp. (KD)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Businesswire/PrimaLoft

Textiles | On 18th Nov 2018

PrimaLoft unveils PrimaLoft Bio Performance Fabric

PrimaLoft, a leader in advanced material technology, has unveiled...

Higher sales and earnings at Macy's in Q3FY18

Fashion | On 18th Nov 2018

Higher sales and earnings at Macy's in Q3FY18

Higher sales and earnings were recorded at Macy’s, one of the premier ...

Courtesy: Amazon

Apparel/Garments | On 18th Nov 2018

Amazon's new headquarters in New York City, Arlington

Amazon is setting up two new headquarters, one in New York City and...

Interviews View All

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Marcel Alberts, Eurofibers

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search