While CAIT has said that it can associate itself with big retailer or domestic e-tailer, prominent homegrown e-commerce players get heavy funding from foreign investors.
The fight between CAIT and online e-commerce platforms is escalating every day and now, the industry body has said that it won’t join hands with foreign players. Dissing several media reports that claimed that the Indian government wants e-commerce players to make offline trade a part of their growth, CAIT said that while it will not consider signing with players such as Amazon, the body has no qualms in associating with a domestic e-tailer. “If at all need arises, instead of e-commerce companies, CAIT will be more inclined to join hands with any domestic e-commerce or big retailer to protect offline trade,” Praveen Khandelwal, Secretary-General, CAIT, said in a statement on Friday. CAIT had announced a nation-wide protest against e-commerce platforms last week alleging issues like predatory pricing and deep discounting.
While CAIT has said that it can associate itself with big retailer or domestic e-tailer, prominent homegrown e-commerce players get heavy funding from foreign investors. Flipkart, for example, is backed by US-based Walmart and the world’s largest retailer owns 77% stake in the Binny Bansal and Sachin Bansal-founded company. On the other hand, Snapdeal got investments from China-based Alibaba Group, Tokyo-based Softbank and Europe’s Myriad group among many others.
In fact, CAIT has been demanding Flipkart’s exit from Indian e-commerce landscape. Accusing Flipkart of massive losses to government revenue, CAIT said, the company has caused “huge GST & Income Tax revenue loss to the government,” the industry body said citing Flipkart’s balance sheet. It added that Flipkart has grossly manipulated and controlled inventory, bypassed the FDI policy and indulged “into a sinister game of valuation of the Company instead of conducting business in an open and transparent manner”. The industry body also demanded setting up committees to study Flipkart and its parent company’s balance sheet and income and expenditure account.
“These companies are incurring losses of thousands crores of rupees every year but still they are able to continue their businesses without any problem which is much against the basic fundamentals of economics,” CAIT said.