Retail majors Amazon & Walmart to invest 2,000 cr in India

As per Amazon, it plans to infuse a sum of around 1,600 cr through a right issued into Amazon Seller Services whereas, Walmart will invest around 350 cr and plans to open nearly 50 stores in India.
Walmart & Amazon India

Eyeing at the huge market potential of the country, two of the biggest names in the retail biz across the globe, Walmart Stores and Amazon, has planned to invest more than 2,000 cr to expand their network and nab a handsome share of the India’s retail market that is predicted to surpass $1 trillion by the year 2020.
Though both of these US-based retail majors are immediate rivals on their home country, but it’s not the same in India as the two belongs to different formats of retail here. Amazon India functions as an online platform that puts buyers and sellers together. Walmart's stores in India cater to the wholesale trade, with smaller retailers being its customers.
As per Amazon, it plans to infuse a sum of around 1,600 cr through a right issued into Amazon Seller Services and with this investment it will be one of the biggest infusions of capital by the company since its entry in India. The investment takes Amazon's total investment in Amazon Seller Services in the past year to about 4,800 cr.
Whereas, Walmart Stores will invest around 350 cr and plans to open nearly 50 doors in India and close to nearly 270 stores globally.
Commenting on the same, Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, "India is one of the last few high growth markets. 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." RAI expects the total market size to exceed $1 trillion in four years from $600 billion now,” he added.
As per a report by Goldman Sachs, the eCommerce market in India is expected to grow up to $103 billion by FY 20 and withstanding the same, Amazon expects India to overtake some of its largest overseas markets such as th UK, Japan and Germany.

Publish Date
Not Sponsored
Live: People Reading Now
RECOMMENDED FOR YOU
TRENDING ARTICLE