Flipkart plans to enter food retail rejected by Government.
                     Flipkart plans to enter food retail 
rejected by Government
DPIIT rejects Flipkart
 The Department for Promotion of Industry and 
Internal Trade (DPIIT) has rejected Walmart-
backed Flipkart’s proposal seeking approval 
for entry to the food retail sector citing a 
regulatory issue
Source: Google Images
Major blow
 In a major blow to Flipkart, the Indian 
government has rejected Walmart-owned e-
commerce firm's proposal to enter the 
nation's fast growing food retail market, citing 
regulatory hurdles
Source: Google Images
Farmermart
 The online retailer has set up a new local entity 
Flipkart Farmermart, with an authorized equity 
capital of Rs 1,845 crore, to take on arch-rival 
Amazon in food retail business in India.
Source: Google Images
Not giving up
 Following the government's order, Flipkart is 
trying to understand the reason behind this 
step and aims to re-apply for the license at 
the earliest.
Source: Google Images
Big plans
 In October last year, e-commerce giant 
Flipkart Group CEO Kalyan Krishnamurthy had 
announced that the company planned to 
invest $258 million in the newly registered 
local entity to focus on food retail in India.
Source: Google Images
100% FDI in food sector
 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
Source: Google Images
Rival Amazon
 Rival Amazon had received the government's nod 
for its $500 million investment proposal for 
retailing of food products in India in 2017. The 
American retailer now procures and sells grocery 
items like packaged foods, cooking and other 
items.
Source: Google Images
Online grocery
 Over the last few years, players like BigBasket 
and Grofers have expanded their presence in 
the online grocery segment in the country as 
people became comfortable buying even milk 
and bread online
Growing sector
 Flipkart and Amazon are also betting heavily 
on the online grocery segment that is 
projected to witness a strong growth over the 
next few years in India. For now, Flipkart will 
still have to wait some time.
Source: Google Images