Binny’s exit triggers whirlwind at Flipkart, management to change

Chennai: Flikart group CEO and chairman Binny Bansal’s exit from the firm has led to a vortex of changes at the e-commerce giant’s management level. The firm has announced that it is set to hire top talent in tech, marketing, human resources, soon.

Binny Bansal’s discreditable departure has left the doors open for senior executives to leave the firm as Walmart looks to overhaul its entire management team by aggressively hiring senior executives in areas such as marketing, technology and supply chain management to name a few.

The US-based retail giant will also reportedly relocate staff from overseas so that the Indian business aligns with Walmart’s global processes.

As per reports, a company spokesperson has said to a financial daily that “Flipkart is committed to growing ecommerce in India and particularly to innovating to get the next 200 million customers online! In line with that vision, we have aggressive growth plans in place and a large focus on getting top talent at all levels.”

A Bengaluru-based headhunter is evaluating at least five names on behalf of India’s largest ecommerce company for senior leaders in domains such as logistics, supply chain, marketing and technology, the report stated.

Walmart desires Flipkart to grab the leadership position with no close competition in the ecommerce space, the executive recruitment agency’s senior partner has said on condition of anonymity, as per reports.

Flipkart is considered as the best paymaster in the ecommerce sector and there is no limit to the amount of money that can be offered as remuneration. Top management executives are paid over Rs 5 crore a year, the report said.

Managing director, BTI Executive Search, James Agrawal, told the publication, “Despite a few exits, hiring at senior level would continue and this would include hiring for both replacement and fresh profiles.”

Retail stats
India has emerged as the major online retail market for Walmart and Amazon as both the companies lost out on the world’s largest online retail market – China. India’s ecommerce market was worth nearly $20 billion in 2017 and is estimated to reach $35 billion in sales by 2019.

 

Why Binny quit
Bansal reportedly was in a relationship in 2016 with a former employee, who had left the company four years earlier. Two months after (in May) Walmart decided to acquire a 77 per cent stake in Flipkart, she complained to the US retailer of sexual harassment by Bansal, who has denied it. Walmart said an internal investigation did not find Bansal guilty of the allegation.

But it was Bansal’s omission of this personal matter during the acquisition that sparked the chain of events leading up to his exit as Flipkart’s Group CEO.

Walmart said, and Bansal conceded, that there had been a ‘lapse in judgement’ and lack of transparency in Bansal’s handling of the situation.

 

NT Bureau