Flipkart buys Walmart’s India wholesale biz

FLIPKART WILL TAKE OVER WALMART INDIA, WHICH OPERATES THE BEST PRICE STORES

nBENGALURU/NEWDELHI:FLIPKART has acquired the Indian operations of Walmart Inc. as its US parent consolidates its operations in this fast-growing retail market to compete with Reliance Industries Ltd and Amazon, among others.

Flipkart will take over Walmart India Pvt. Ltd, which operates the Best Price cash-andcarry wholesale stores. It is expected to launch a digital marketplace, Flipkart Wholesale, which is in pilot mode, in August, in a bid to grow its business-tobusiness (B2B) vertical.

The acquisition brings Walmart’s entire portfolio in India under the Flipkart group, two years after it bought a majority stake in the homegrown e-tailer for $16 billion. The 28 Best Price stores will remain operational.

Following the transaction, Walmart India’s team based in Gurugram is expected to shift to Bengaluru, where Flipkart is based, next year. Walmart first entered India in 2007 in partnership with Bharti Enterprises.

After parting ways in 2013, Walmart decided to go solo.

Flipkart Wholesale will start operations with the fashion category, gradually expanding to include grocery, home, large and small electronics products. The new vertical will be headed by Flipkart veteran Adarsh Menon while Sameer Aggarwal, CEO of

Walmart India, will move to another role within Walmart after the transition. “We are looking at a part of that market, which is valued at $150 billion, as the online B2B business continues to grow as a critical channel. Flipkart Wholesale can leverage Walmart India’s merchandising experience, strong relationship with brands and over 12 years of experience of operating Best Price stores, most of whom are small businesses,” Menon, senior vice-president and head-flipkart Wholesale, said in a telephonic interview.