Skip to content
Search

Latest Stories

Flipkart denied entry into India's food retail business

IN a setback to Walmart-owned Flipkart, the Indian government has rejected the firm's proposal to enter the huge food retail business in the country.

Walmart recently said that its India business is one of the worst impacted by the global Covid-19 pandemic.


India's commerce and industry ministry's wing, the department for promotion of industry and internal trade, has informed Flipkart that its plan does not comply with regulatory guidelines, reported Techcrunch.

However, Rajneesh Kumar, chief corporate affairs officer at Flipkart, said that the company would re-apply.

“At Flipkart, we believe that technology and innovation driven marketplace can add significant value to our country’s farmers and food processing sector by bringing value chain efficiency and transparency. This will further aid boosting farmers’ income & transform Indian agriculture,” he added.

While announcing the plan to enter the nation’s growing food retail market, Kalyan Krishnamurthy, Flipkart Group CEO, said in October 2019 that the company planned to invest $258 million in the new venture.

Flipkart planned to invest deeply in the local agriculture-ecosystem, supply chain, and work with tens of thousands of small farmers, their associations, and the nation’s food processing industry, reports said.

According to Flipkart, the proposed food retail unit would help “multiply farmers’ income and bring 'affordable, quality food' for millions of customers.

Many e-commerce and grocery firms in India, including Amazon, Zomato, and Grofers, have previously secured approval in India, which currently permits 100 per cent foreign direct investment in food retail, for entering the food retail business.

India’s online food and grocery market remain significantly tiny, accounting for just one per cent of the overall sales.

India's lockdown to contain the spread of the Covid-19 in late March restricted Amazon and Flipkart from delivering in many states and only sell “essential items” such as grocery and hygienic products.

More For You

JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JLR halts plan to build EVs at Tata’s India plant: Report

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.

Keep ReadingShow less
Government to abolish payments regulator to boost growth

Keir Starmer (R) and Rachel Reeves host an investment roundtable discussion with members of the BlackRock executive board at 10 Downing Street on November 21, 2024 in London, England. (Photo by Frank Augstein - WPA Pool/Getty Images)

Government to abolish payments regulator to boost growth

PAYMENTS REGULATOR will be abolished and its remit absorbed by another financial regulator, the government said on Tuesday (11), as it aims to cut red tape in favour of growth.

The Payment Systems Regulator (PSR), which oversees systems including MasterCard and bank transfers, tackles problems such as fraud, excessive fees and lack of competition among banks and payment providers.

Keep ReadingShow less
Boohoo

Boohoo’s shares, which have fallen by about 20 per cent this year, dropped 4 per cent on Tuesday. (Photo: Getty Images)

Boohoo rebrands as Debenhams after 21 per cent sales drop

BOOHOO has rebranded itself as Debenhams Group after sales from its young fashion brands, including Boohoo, MAN, and PrettyLittleThing, declined by 21 per cent to £947 million.

The move comes amid strong competition from Shein and a shift towards second-hand clothing among younger shoppers, The Guardian reported.

Keep ReadingShow less