Kalyan Krishnamurthy writes to Flipkart employees to qualm fears of Walmart exit
today Feb 7, 2019
Flipkart’s CEO Kalyan Krishnamurthy has written to his employees to restate his confidence in the business and rebuke the predictions of the recent Morgan Stanley report on Walmart’s position on India.
Morgan Stanley had posited that Walmart may wish to ditch its 77 percent controlling stake in Flipkart in the midst of uncertainty over the FDI norms that came into effect at the start of the month. However, Krishnamurthy, who took over as Flipkart’s CEO during the Walmart acquisition period last year, stated in the letter, accessed by ET Bureau, that “the report couldn’t be further from the truth."
“Walmart remains extremely confident in the potential of the Indian market and in Flipkart’s ability to lead the e-commerce space,” wrote Krishnamurthy. “By partnering with Flipkart, Walmart has taken a long-term view of the opportunities and hence is unfazed with any short-term hurdles.”
The February 4 Morgan Stanley report outlined how the new FDI regulations will increase the costs of doing business online for large multi-brand retailers. However, neither Flipkart nor its parent company will change its long term business plan for the country, Krishnamurthy claimed.
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