Amazon wins India’s approval to invest in food products


  • Business
  • Wednesday, 12 Jul 2017

MUMBAI: Online retail giant Amazon.com Inc has secured approval to stock and sell food and groceries in India, potentially expanding its business in the fast-growing economy where it is in a pitched battle with home-grown rival Flipkart.

Amazon confirmed winning government approval for its plan to sell food products, but it declined to provide further details.

Separately, a source familiar with the matter said Amazon planned to invest US$500mil in the food segment, over and above the US$5bil it had already committed to investing in India.

Cheaper smartphones, increasing internet penetration and steep discounts have led to a surge in domestic online shopping for everything from gadgets to clothes and food items in India.

Still, mom-and-pop stores account for the biggest share of grocery sales, offering organised players huge growth potential.

Currently Amazon offers food products in India via Amazon Pantry, where retailers including joint venture Cloudtail sell various products.

It also offers same-day grocery delivery on its Amazon Now app through a tie-up with Indian retailers Big Bazaar, Star Bazaar and Hypercity.

Amazon did not comment on whether its new investments would affect any of its existing tie-ups, or its Cloudtail joint venture.

Venture-funded Flipkart, whose backers include Tiger Global, Tencent Holdings and Microsoft, also plans to move into the groceries space, company executives have said.

Amazon last month announced plans to buy upscale US grocer Whole Foods Market Inc for US$13.7bil. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , amazon , India

   

Next In Business News

Bermaz profit raises to RM133.9mil in FY21
Palm oil reverses course to trade up 1% on stronger US soyoil
Uzma, Petra Energy JV wins onshore petroleum E&P contract in Sarawak
Ipmuda sells PJ property to Kerjaya Prospek, eyes expansion into renewable energy and healthcare businesses
Tenaga, plantations power KLCI sharply higher
Malaysia maintains CPO export tax at 8% for July
FDI slips to lowest since 2009 due to pandemic
Vehicle sales in May doubled on-year but minimal sales seen in June
Malaysia's Carsome weighs US listing with SPAC as option
Pound tumbles as virus resurgence clouds hope for UK recovery

Stories You'll Enjoy


Vouchers