According to sources, Flipkart is expected to invest about Rs 2,000 crore initially in the business and pump in more funds as required as it scales up supply chain, storage and logistics’
E-commerce giant Flipkart on Tuesday said it is setting up a new local entity – Flipkart Farmermart – that will focus on food retail in India, as it looks to take on arch-rival Amazon in the segment. According to sources, Flipkart is expected to invest about Rs 2,000 crore initially in the business and pump in more funds as required as it scales up supply chain, storage and logistics.
“In line with the Government of India’s FDI policy, which allows 100 per cent foreign direct investment (FDI) in food retail for food produced and manufactured in India, Flipkart is applying for appropriate licenses from the government,” Flipkart Group CEO Kalyan Krishnamurthy said in a statement.
This newly registered local entity ‘Flipkart Farmermart’ will focus on food retail and is an important part of the company’s efforts to boost Indian agriculture as well as food processing industry in the country, he added.
“We’ve secured all internal approvals for the same already. We’re looking forward to invest more deeply in local agri ecosystem, supply chain and working with lakhs of small farmers, Farmer Producers Organisations (FPOs), food processing industry in India, helping multiply farmers’ income and bring affordable, quality food for millions of customers across the country,” Krishnamurthy said…
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