Disappointed with India's new FDI e-commerce policy, but we are moving forward: Walmart
PTI March 6, 2019
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.
"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
Last year, Walmart completed acquisition of 77 per cent stake in Flipkart for about USD 16 billion (Rs 1.05 lakh crore), a deal which gave the US retailer access to the fast growing Indian e-commerce market.