Amazon and Walmart to Invest Over Rs 2000 Cr in India
Amazon and Walmart are going to invest more than Rs 2000 crore in India with the aim of building their networks and gaining a chunk of the Indian retail market. The retail market in India is expected to cross $1 trillion by 2020.
The two retail giants are planning to have an edge over the Indian retail market through heavy discounting. India has rules regarding overseas investment which implies that they cater to different segments of the market. Amazon has its core function in putting buyers in touch with the sellers. Walmart stores based in India serve the wholesale trade with smaller retailers being their customers.
Walmart is going to make an investment of Rs 360 crore and is planning to open nearly 50 outlets in India.
As per Kumar Rajagopalan, CEO, Retailers Association of India, “Modern retail remains untapped with just a 10 per cent share. Online companies see the potential of reaching more than 400 cities with a click. All the indicators from a political standpoint also show that India is reaching a stage of high-level liberation even at state level.”
Amazon has stated a month back that its e-commerce site had come up to be one of the largest in India. It has more than 40 million product offerings and close to 55,000 new products that are added each day. In 2015, Amazon had expanded the capacity of its units three times with almost 90 per cent of its sellers utilising the company’s logistics.