Reports added Flipkart hopes to catch up with rival Amazon in the food and grocery business by floating a separate venture, Flipkart Farmermart Pvt Ltd. What’s more, the parent company Walmart has pledged support of funds to the extent of Rs 2,500 crore for this purpose. Meanwhile Amazon had gone in almost a similar route setting up a separate venture.

Image result for Flipkart is in the process of applying for food retail license in India

Furthermore these companies are looking at the huge potential that exists in the Indian context, where both Amazon and Flipkart have seen categories like electronics and fashion grow rapidly in terms of the buying public’s acceptance of the online mode for making purchases and however, the sheer numbers in this country cannot be overlooked. Furthermore there are at least 500 million people with connections to the internet a majority through their mobile devices. Further the last known figures for online retail claim hardly 10% of the retail sale is accounted for online though specific product categories like mobile phones have crossed 50%-60%.



Moreover coming back to Flipkart Farmermart, the company is in the process of obtaining a food license and seeks the approval of the Department of Industrial Policy and Promotion, DPIIT, to carry on food retailing business within the existing FDI policy. Perhaps it is only then that it can settle down to plan its strategies to successfully run this business and these categories are quite dicey to handle, especially when compared to the electronics and other product categories. 


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