Morning News from India - May 11, 2018 Tweet11 May 2018
- Sensex, Nifty Clock Best Weekly Gain In A Month Ahead Of Karnataka Polls (Bloomberg Quint)
- India’s Industrial Output Growth Slows To 4.4% In March (Bloomberg Quint)
- Infosys independent director Ravi Venkatesan quits to pursue ‘exciting new opportunity’ (Times Of India) - INFY
Tata Motors global sales up 39% in April (Economic Times) - TTM
- How Amazon missed three opportunities to acquire Flipkart (Economic Times)
- Walmart’s $16 billion deal for Flipkart a sign US companies are looking to India for deals (CNBC)
- Flopkart - US investors simply don’t get why Walmart bought Flipkart: “It makes zero sense” (Quartz India)
Frankly, this deal reeks of empire building: Walmart is buying its share of Flipkart because it feels entitled to retail growth globally, but the reality is that Walmart’s investors would be far better served by Walmart investing the cash in its fight against Amazon or, if it feels it is already spending enough, returning the cash to shareholders who can decide on their own how to invest in the market (likely by buying Amazon shares, natch).
…To be clear, Walmart management has only said it supports Flipkart’s ambition to transition into a publicly-listed, majority-owned subsidiary in the future. How far in the future is unclear, but given clear advantages to doing this, we would be surprised if it was more than two to three years.