By: Ashutosh Asthana
World's largest company (on the basis of revenue) Walmart has taken over Indian e-commerce giant Flipkart. Both the companies have struck this deal at a price of 16 billion US dollars (Rs. 1 lakh crore). Co-founder of Flipkart, Sachin Bansal has resigned from all his positions in the company.
Mightiest e-commerce deal
According to the announcement, Walmart has bought 77 percent stakes of Flipkart. This is the biggest and most expensive deal in the history of Indian e-commerce sector. After this deal, Walmart will become the biggest multinational company working in India. Walmart's turnover in India will reach around 10 billion US dollars after the deal with Flipkart. Significantly, Walmart's Global CEO Doug Macmillan had reached India on Tuesday for the deal and on Wednesday the deal has been announced officially. There is not much data shared about the working of Walmart in India. Although, Walmart's best price-cash and carry business in India is around $ 500 million. At the same time, Walmart buys about 3 billion US dollars of products from Indian companies for its international stores. Apart from this, Walmart also purchases generic medicines of up to 3 billion US dollars from Indian pharma companies and supply it worldwide.
Walmart will become the biggest multinational company in India
According to a quick estimate, Walmart is doing a business of about Rs. 43,700 crores ahead of the deal with Flipkart in India. After this deal, it is estimated that after the total revenue of Flipkart, Myntra, eBay, Jabong, which is Rs. 22,911 crore, Walmart's total turnover in India will reach approximately Rs. 67,000 crore.
Significantly, the second largest multinational company in India, Rosneft Essar Oil, had made a turnover of Rs 63,722 crore in the financial year 2016-17. At the same time, the country's largest multinational company Maruti Suzuki had a turnover of Rs 70,418 crore. So, in the event of this deal, Walmart will be the second largest multinational company in the country and will be able to capture the number one position very soon. Walmart Inc has also said that it will open 50 new stores across India in next 4-5 years.
Naspers of South Africa also sold its stakes in Walmart
Internet and entertainment company Naspers of South Africa has also sold its stakes of 11.8 percent to Walmart, which it held in Flipkart. Naspers has done the deal for Rs 14,740 crore. Naspers had invested in Flipkart in August 2012 and now after selling its full stake, Nasper's efforts will be to strengthen the balance sheet of the company while expanding the business in different sectors.