SUMMARY
• Walmart is looking to shift some of its key people from Gurugram to Bengaluru
• Walmart may fill the positions of CFO, legal counsel, and compliance officer at Flipkart with its expat executives
• The move is part of Walmart’s global push to strengthen compliance with the US Foreign Corrupt Practices Act
Amid competition issues, legal hurdles, income tax burdens, and protests, Walmart is busy making plans for Flipkart after it completes the acquisition of this Indian ecommerce player.
Reports have surfaced that the global retailing giant is now looking to shift some of its key people from Gurugram to Bengaluru, where Flipkart is based.
At the same time, it may tap talent from its Asda unit in the UK, which was sold to rival Sainsbury in April for $10 Bn.
The company is looking to fill the positions of CFO, legal counsel, and compliance officer at Flipkart with its expat or foreign executives.
This is a part of its global push to strengthen compliance with the US Foreign Corrupt Practices Act, which prohibits US-listed entities from indulging in corrupt practices in foreign countries.
A Walmart spokesperson declined to comment on these personnel plans.
After months of speculation, Walmart confirmed buying a 77% stake in Flipkart for $16 Bn. The entry of the retailing giant comes as a major challenge for global ecommerce major Amazon, who has been strengthening its presence in India.
The Walmart-Flipkart is looking to take on Amazon India.
Recently, Walmart said that it would fulfil all the regulatory requirements and get the tax implications of the deal examined. Walmart has targeted to raise funds for the Flipkart acquisition by June 2019, but it plans to close the deal by end of 2018.
Prior to this, on being questioned about protests by trade associations against the deal, Flipkart co-founder Binny Bansal deflected the question, saying it fell under “Walmart’s domain”.
In a written submission for approval for the deal, Walmart tried to address the CCI’s concerns by saying that the relevant market for the proposed transaction is the pan-India market for B2B sales.
With an ecommerce think tank already in place for $200 Bn worth ecommerce market, Walmart’s seems to be sharpening its arsenal with its eye on the future.
[The development was reported by ET.]
