American Retail Giant Walmart to Acquire Flipkart, More Job Hopes in India

America’s multinational retail corporation and world's second-largest employer, Walmart is soon to acquire 77% stake of Flipkart, India’s biggest online store. The deal is supposed to create more minimum wage jobs in India, according to experts.

Walmart, in the official announcement on Wednesday, informed that they will be investing $16Billion in the deal that’ll be functional to help them grab a foothold in the Indian market. As per sources, the Walmart Flipkart deal will shortly launch their own grocery service. Also, the acquisition is expected to enlarge and diversify its fashion and clothing section, focusing especially on the mid-range products.

A Forbes blog mentioned that Walmart took the decision to expand in India when it was closing stores in the US cutting short its number of employees. While, on one hand, this business decision is agitating a few labor advocates in the US, on the other the deal is drawing new job promises in India.

Porter Erisman, author of Six Billion Shoppers says “...e-commerce growth in India will be dramatic, taking root in India will take longer than in China because of the many additional frictions in the Indian market.” He’s also of the opinion that e-commerce will play a more important role in India than China, leveraging the buying power of the masses, specifically the poor consumers.

Although Walmart’s shares dropped 3.1 percent after the official declaration. Wall Street analysts are calling it Walmart CEO Doug McMillon’s “boldest move yet”. According to analyst Ben Bienvenu, “This marks a significant entry into the fast-growing Indian marketplace that has been so elusive for WMT to date.”

The “brilliant long term move” has brought Walmart and Amazon, world’s largest internet company, on an equal footing. The ongoing rivalry between the two giants is definitely going to pick up, however, it is only the customer experience that will determine the corporate war climax.