Walmart: Modi government with larger majority is best for India business
today Jun 12, 2019
The recent election results where Narendra Modi won a larger majority than before in parliament is most probably the best outcome for businesses operating in India, according to Walmart’s EVP and international CFO Richard Mayfield.
Walmart’s Richard Mayfield opined that the recent Lok Sabah election results, which saw Modi win a greater majority, probably constituted the best possible result from a business standpoint at a Deutsche Bank conference on June 11, TNN reported.
Mayfield’s sentiment mirrors that of the day after Modi’s election victory in late May when global investors invested a net $216.3 million (Rs 1,439 crore) into Indian bonds, as reported by Business Standard, showing confidence in the result.
“The e-commerce network is largely ourselves, Amazon, and then some smaller players,” said Mayfield on the call, when asked about Walmart-owned Flipkart.
“So, we feel well positioned. I’m sure there would be a few more surprises. But we know the environment reasonably well and we are confident about the future.”
Despite a number of challenges, such as numerous executives leaving Flipkart since Walmart acquired a 77 percent the business just over a year ago, Walmart has remained vocal about its commitment to the business in the long term.
The business’ CEO Doug McMillon visited Flipkart’s headquarters in Bengaluru in April to reiterate his commitment to the investment.
Walmart also reported in May that is saw a dip in profit for its international business in the February to April quarter caused by Flipkart’s performance but stated that this was in line with expectations.
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