Since Walmart has taken over Flipkart, there have been a lot of changes. The hierarchy problems are finally settled and the company is looking to stabilize itself with some final tweaks. The FDI policy also came at the wrong time as Flipkart was going through a transition period. There are certain things it had decided like bringing Myntra and Jabong under an umbrella so it could synergize the work process.
That being said, Flipkart is looking to enter the food and grocery market and it has looked to do so for a long time. The company has therefore acquired Namdhari’s Fresh. Namdhari’s Fresh brings the required experience and depth needed in building the right work pattern for food and grocery marketplace. There were people who were aware of the news talking about it.
The deal was first reported by CNBC TV18. People aware of the matter said, “This business may be of interest to Walmart’s Agri supply chain,” said a person aware of the talks, adding that “the transaction isn’t done yet.”
With Namdhari’s acquisition, they get a good look at how the company works out the deals with the consumers. Namdhari’s might not be a household name but it is a global brand. The company is known for exporting seeds to Europe and the far west as well. Flipkart will cherish the acquisition of one of the leading companies of India.
We can look back at Kalyan Krishnamurthy’s interview with Economic times when he had stressed on the fresh fruits and vegetable market. The market is not as big as the western countries but it is big enough to be tackled and the future is bright. It is on a similar path to the electronics e-commerce market. The electronics market enormously grew after a humble start in India. A similar trend could be seen.
He said, “If you look at the contribution of fresh fruits and vegetables to the total grocery market in India, it is still not as big as some of the Western countries. The bigger focus is stapled, FMCG and dry groceries, after which we will experiment and problem solve for fresh (fruits and vegetables) as we grow.”