Walmart International President and CEO Judith McKenna has met Commerce and Industry Minister Piyush Goyal to discuss local sourcing norms for the domestic market.
The statement comes amid reports that Flipkart, which is locked in an intense battle with US giant Amazon for leadership in the Indian market, is looking at tapping into the US equity market by 2022.
"Walmart increased its equity holding in Flipkart by buying 5,39,912 shares of its erstwhile co-founder Binny Bansal for $76 million through its Luxembourg-based entity.
Reliance Retail's upcoming entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart as the Mukesh Ambani-led behemoth is well positioned to create massive disruption in the market, a new report has stressed.
The decision has come in the wake of Jabong and Myntra, Flipkart's sister companies, shedding some of their employees.
On August 18 Walmart had informed that it has completed deal with Flipkart and holds 77 per cent stake in the Indian e-commerce major.
"FY20 operating income is expected to decline by a low single digit percentage range, but is expected to increase by a low single digit percentage range when excluding Flipkart in both FY19 and FY20," Walmart said in a regulatory filing.
Wal-Mart International Holdings Inc, however, in a separate reply has said its business model and activities in India were different of Flipkart's.
Walmart India is a wholly-owned subsidiary of US retail giant Walmart Stores.
While Walmart now holds approximately 77 per cent of Flipkart, the remainder of the business is held by other shareholders, including Flipkart co-founder Binny Bansal, Tencent, Tiger Global and Microsoft Corp.
Flipkart had shared share purchase agreement with tax authorities in May, and I-T department is currently calculating the tax rate that would be applicable for investors in Flipkart who are selling the shares to Walmart. Significant shareholders like SoftBank, Naspers, venture fund Accel Partners and eBay, have agreed to sell their shares.
In the UP Investment Summit held earlier this year, Walmart India had signed a memorandum of understanding (MoU) with the state government to open 15 wholesale Cash and Carry stores.
Under the partnership, Walmart and Microsoft engineers will collaborate on the assessment, development and support phase of moving hundreds of existing applications to Cloud native architectures.
According to a regulatory filing with Securities and Exchange Commission (SEC), Walmart said the ongoing operations of Flipkart are expected to impact the US company's income negativel
"It's pretty clear that this deal is good for customers and would create jobs and help society", said Walmart chief executive Doug McMillon.
The deal, under which co-founder Sachin Bansal and Japan's Softbank Corp Group are exiting, values Flipkart at USD 20.8 billion. It is the biggest M&A deal in India this year.
In his letter, Flipkart co-founder Sachin Bansal said it was time for him to hand over the baton and focus on finishing a few personal projects.
The reports say the deal values Flipkart, the 11-year old Indian e-commerce company, at $20.8 billion.
Flipkart, in a regulatory filing, informed ACRA that it concluded a second buyback of shares from a set of its investors for $350.46 million in a transaction that closed on April 27.
Earlier, in a 15 billion US dollar deal signed on Thursday, Walmart decided to buy 73 per cent of the Indian e-commerce giant.
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