Walmart CEO Doug McMillon wrote to PM Modi
Walmart’s Flipkart is working on a food retail platform FarmerMart
Walmart had acquired Indian ecommerce platform Flipkart in 2018
As Walmart’s subsidiary Flipkart is all set to launch food retail platform FarmerMart, the multinational retail corporation’s CEO Doug McMillon has written to Prime Minister Narendra Modi seeking an open and stable regulatory environment in India to benefit itself and other global giants. In the letter, McMillion also highlighted data privacy and localisation, permit and other regulatory requirements of India.
McMillon wrote that the company will be sourcing more than 25% of fruits and vegetables directly from Indian farmers, especially from those who are in Uttar Pradesh, Andhra Pradesh and Telangana. He also added that a stable and open regulatory environment in the country will back Walmart’s initiative and help create more than one lakh direct jobs.
Walmart CEO further highlighted the prerequisite of high number of permits, which are required for opening a store in India. According to McMillon, Walmart currently requires more than 45 permits and at least three years to open a new best price store in India. He urged Modi to reduce licensing norms for setting up stores, like the government did for hotels.
TOI reported citing sources that McMillon has acknowledged the government’s concerns regarding data privacy of Indian citizens
The development at a time when Flipkart is preparing to launch FarmerMart in India. The food retail platform will be selling locally-produced and packaged food products directly to customers.
Flipkart registered the company as a corporate entity on October 4, after the regulations in food retail allowed ecommerce platforms to sell directly to the consumer. The platform will have a separate board, staff and inventory, and will not be shared with Flipkart’s ecommerce business.
Another ecommerce giant Amazon is also underway to launch its food delivery service and the cloud kitchen business. The company is currently running a pilot in Bengaluru.