India’s Flipkart applies for food-retailing licence
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Indian e-commerce platform Flipkart has filed for approval from regulatory authorities to conduct food retail in the territory.
According to a Times of India report, The Walmart-owned business has made the application with the Department for Promotion of Industry and Internal Trade with the expectation of a decision within three months.
The firm registered an online grocery business in October last year under the brand name Flipkart FarmerMart. According to reported figures, the firm will make an investment of ₹2,500 crore (US$338,000) in the venture.
Initial plans will see the firm delivering customer purchases via local “kirana” stores partnering with the Flipkart business.
The firm will “focus on deep agri-supply chain investment, especially at the farm gate level and will encourage demand-driven sowing, which will help farmers produce right fruits and vegetables and get paid as per market price”.
Flipkart competitor Amazon has held a food retail license in India since 2017.
Questions & Answers
Q.Which government body is responsible for approving Flipkart's food retail licence application?
Which government body is responsible for approving Flipkart's food retail licence application?
Flipkart submitted its application to the Department for Promotion of Industry and Internal Trade. A decision on the licence is anticipated within three months of their submission to the regulatory authorities.
Q.What is the name of the online grocery business Flipkart registered last year?
What is the name of the online grocery business Flipkart registered last year?
The company registered an online grocery business in October of the previous year. This venture operates under the brand name Flipkart FarmerMart, which will presumably manage the food retail operations.
Q.How will Flipkart initially deliver customer purchases under its new food retail venture?
How will Flipkart initially deliver customer purchases under its new food retail venture?
Initial plans indicate that Flipkart will deliver customer purchases by partnering with local "kirana" stores. These stores will collaborate with the Flipkart business to facilitate the delivery process to consumers.
Q.What is the reported investment Flipkart plans to make in this food retail venture?
What is the reported investment Flipkart plans to make in this food retail venture?
Reported figures suggest that Flipkart intends to make an investment of ₹2,500 crore in this new food retail venture. This sum is equivalent to approximately US$338,000 according to current conversions.
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