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Walmart junks Morgan Stanley report, says unfazed by new e-commerce rules

A recent report by Morgan Stanley had hinted that Walmart may quit Flipkart as the new FDI policy came into effect, which would lower its profitability in the long run

Press Trust of India  |  New Delhi 

Walmart

US retail major Walmart, which invested $16 billion in Flipkart, Wednesday said it is committed to the Indian market and is optimistic despite recent changes in the FDI policy for in the country.

The Bentonville-based retailing major's statement came after a recent report by global consultancy firm Morgan Stanley, which had hinted that may quit as the new foreign direct investment (FDI) policy came into effect, which would lower its profitability in the long run.

Morgan Stanley, in a report titled 'Assessing Risk to EPS' dated February 4, claimed that "an exit is likely, not completely out of the question, with the Indian becoming more complicated."

"Walmart's and Flipkart's commitment to is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country," said Dirk Van den Berghe, Executive Vice President and Regional CEO Asia and

He further added, "We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart's global markets."


Tightening norms for having foreign investment, the government, from February 1, barred online marketplaces like and from selling products of where they hold stakes and banned exclusive marketing arrangements that could influence product price.

The revised policy on FDI in online retail, issued by the commerce and industry ministry, also said that these firms have to offer equal services or facilities to all its vendors without discrimination.

Last year on August 18, Walmart had 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 Indian

First Published: Wed, February 06 2019. 12:15 IST
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