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Walmart e-entry makes India attractive to global majors: Experts
Bengaluru, May 9 (IANS) The whopping $16-billion mega deal by global retail giant Walmart with the country’s leading e-tailer Flipkart for majority stake makes India an attractive destination for global majors in the digital space, industry experts said on Wednesday.
“The deal indicates attractiveness of India’s consumption market for global majors. With Walmart acquiring majority stake in Flipkart, we expect greater thrust on the online grocery segment,” rating agency Crisil Research Director Ajay Srinivasan said in a statement here.
The acquisition makes the $500-billion Walmart the largest shareholder of the city-based Flipkart group and will help accelerate its mission to transform e-commerce through digital technology.
“This is Rs 1 lakh crore all cash deal which is a perfect answer to those who were dismissive of Indian start-ups in an open-for-all market,” tweeted Paytm Founder Vijay Shekar Sharma.
Sharma expects online grocery to be the fastest growing segment in the e-retail space, growing at a 65-70 per cent compounded average growth rate (CAGR) to touch $100-billion in revenues by fiscal 2020.
Biotechnology major Biocon Chairperson Kiran Mazumdar-Shaw said the deal was an endorsement for India’s first e-tailing company.
“It’s capital intensive business that needs deep pockets which Walmart has,” tweeted Shaw.
Advisory firm Gartner director Adrian Lee said in a statement here: “We expect the status quo to remain within the year after the mega deal. It’s an extension of the $500-billion Walmart’s global expansion strategy.”
Lee also expects the competition getting aggressive as Amazon counter-offered Walmart for a stake in Flipkart.
“Both have cash reserves and the outcome in the Indian sub-continent will determine the access to its growing middle-class consumers for dominance, outside the US,” Lee said.
Cautioning consumers from expecting quick changes in the shopping experience because of the deal, Lee said user choice should be improved with more Walmart labels differentiating the merchandise.
“Flipkart will diversify its inventory to attract more Indian consumer segments that haven’t started shopping online,” said Lee.
With a huge user base, India looms as an attractive market for retailers. It’s estimated that 15 per cent (200 million) consumers will shop online by this year-end.
The deal will also benefit homegrown firms, as consumers are attuned and comfortable to shopping online with e-commerce marketplaces.
“As e-commerce penetration remains low (15 per cent), I expect discounts and promotions to continue,” added Lee.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.