US-headquartered Walmart is acquiring roughly 77 percent of India's homegrown Flipkart, a deal the country's traders confederation says will drive small store owners out of business.

The Flipkart company logo at the online retailer's headquarters in Bangalore, India, May 9, 2018.
The Flipkart company logo at the online retailer's headquarters in Bangalore, India, May 9, 2018. (AP Archive)

Indian shopkeepers and traders affiliated to a local lobby group began sit-in protests across the country on Monday against Walmart Inc's proposed $16 billion acquisition of e-commerce firm Flipkart.

The Confederation of All India Traders (CAIT) said the US retail giant's buyout of Bengaluru-based Flipkart would create a monopoly in the retail market and drive mom-and-pop stores out of business.

Praveen Khandelwal, the secretary general of CAIT said he expected one million people to join Monday's sit-in protests across hundreds of cities, including in the country's financial hub Mumbai and cities in Prime Minister Narendra Modi's home state of Gujarat.

"This is the first phase of our protest. And if the government doesn't listen, we will decide our future course of action at our national convention in Delhi later this month," Khandelwal said.

The sit-in in Delhi though, where CAIT is based, attracted just about 50 traders and shopkeepers by 0630 GMT (noon local time), according to a Reuters witness.

Deal threat to small businesses? 

Satinder Wadhwa, a watch seller who attended the Delhi demonstration, said a cash-rich Flipkart would be a major threat to small businesses like his own, which were already suffering due to a ban on high-value currency notes in December 2016 as well as a nationwide sales tax that was introduced a year ago.

In Guwahati, one of the main cities in the northeastern Assam state, about 300 traders gathered to protest against the Walmart-Flipkart deal. They also demanded simplification of the nationwide sales tax, said Rupam Goswami, vice president of CAIT.

Deal awaits regulator's nod

Bentonville, Arkansas-headquartered Walmart announced in May that it was acquiring roughly 77 percent of Flipkart, a deal that now awaits the approval of India's anti-trust regulator.

Multiple sources and lawyers close to the deal have previously said the Competition Commission of India will consider all arguments, but CAIT did not pose a challenge to the acquisition.

Walmart, which currently runs 21 cash-and-carry stores in India, said on Monday it had been supporting local manufacturing in India by sourcing from small and medium suppliers, farmers and businesses run by women.

"Our partnership with Flipkart will provide thousands of local suppliers and manufacturers access to consumers through the marketplace model," Rajneesh Kumar, senior vice president, Walmart India, said in a statement.

Source: TRTWorld and agencies