India’s second richest person Gautam Adani is now considering to expand his business in e-commerce. Partnership talks are going on between Adani Group and US-based retail giant Walmart Inc’s Flipkart. There will be an agreement between the two for wholesale e-commerce and sourcing of groceries, household items.
At present, there is an ongoing partnership between Adani Group and Flipkart in warehousing and data centers. However, it is now planned to expand to wholesale e-commerce and sourcing of groceries and household items. If this happens, then in the coming times, e-commerce companies like Mukesh Ambani’s company (Jio Mart) and Amazon can get a tough competition.
Will join new and old wholesale customers
According to the report, Adani Group may enter into a new agreement with Walmart for a strategic partnership, under which it can sell a range of its products to Flipkart. After that both can sell it and take profit. According to a report in Mint, sources said that apart from selling products, this partnership will also add retailers and new wholesale customers.
Revenue up 25% last year
Both Adani and Flipkart will together supply goods in bulk to shops and merchants. Let us tell you that Walmart does its online wholesale business in India through Flipkart Wholesale, the business-to-business arm of the Flipkart Group. Flipkart Wholesale’s FY2011 revenue grew 25% over the previous year to ₹42,941 crore while the loss declined 22% to ₹42,445 crore.
What will be the profit for Flipkart?
This partnership can strengthen Flipkart against competing companies like Amazon and JioMart. As per the current discussions, Adani Group will provide several new storage facilities vehicles and manpower to Flipkart so that Flipkart can increase its wholesale business and offer products online with great discounts to shops, retailers and department stores. Flipkart Wholesale has 28 Best Price stores in the country.