Won't run Flipkart from US, says Walmart CEO Doug McMillon

The retail giant is relying on Flipkart's strong base of 35,000 engineers, backend technology, including artificial intelligence, data and consumer profile to fight Amazon on the home turf

Just like in Marvel’s billion dollar money churner film Avengers: Infinity War, Doug McMillon, the president and chief executive officer of Walmart Inc, wants to create a board of highly capable directors who will be able to make Flipkart a super successful company.

“We are trying to put together an Avengers-like team which will give Flipkart good advice,” McMillon said. Movie trivia aside, in a select media roundtable, he made it clear that Walmart India’s cash and carry and Flipkart would be working independently of each other, and Binny Bansal, the co-founder and group CEO of Flipkart would be calling the shots, keeping the board in the loop. 

Pointing out that “no bureaucracy in the US will come in the way of Flipkart’s independent operations, McMillion said Walmart wants to take full advantage of Flipkart’s independent thinking and technology drive. 

Walmart is quite bullish about Flipkart’s mobile wallet PhonePe, which market analysts believe might be even taken to the US as Walmart’s primary digital money offering. Not elaborating much, McMillon said, “PhonePe is something that is important to this transaction. We do not think we have payments capabilities that are as robust as this one anywhere in the world. We think we can learn a lot.”

The Bentonville-based retail giant is relying on Flipkart’s strong base of 35,000 engineers, backend technology, including artificial intelligence, data and consumer profile to fight Amazon on the home turf.

“Over time we would look for leveraging and synergy opportunities, but that is not our immediate focus,” he added.

McMillon said the long-term plan is to create 10 million jobs, help farmers and reduce food waste as much as possible. “We have business around the world and in time, we believe, we would be able to help out with the supply chain, cold chain, teaching and incentivising farmers, so that waste is reduced and farmers make more money.”

McMillon is confident that in the long term, opposition to Walmart would die down after the company is able to show the direct and indirect jobs created by the company.

“It is pretty clear that this deal is good for customers and would create jobs and help society. There is an opportunity over a period of years to generate another 10 million jobs. I don’t want to put a timeline but we have analysis to show that,” he said. 

Asked why he was not meeting any senior government minister during his trip, McMillon said there was nothing amiss here. “We deal with the government at all kinds of levels all the time... we have met before and I am sure will meet again. That (meeting) is not the most important thing. We don’t need a photo-op,” he said.

McMillion said Walmart would comply with any tax demand arising from its purchase of stake in Flipkart. “Our intent is, whether looking backwards related to our acquisition here or looking forward, we will be compliant with whatever the tax rules are,” he said.

Flipkart’s co-founder and group CEO Binny Bansal said that a decade back when Flipkart was started, the vision was to create a technology giant out of India. “What I really like about this partnership is that vision does not change. This investment is actually going to accelerate that vision,” he said, adding that in the short- to mid-term, nothing would change in the company.

Flipkart’s vision was to create a technology giant out of India. This investment is going to accelerate that vision: Flipkart co-founder and group CEO Binny Bansal