“We estimate that Flipkart derives 50% of its revenue from this category, meaning Flipkart could face meaningful disruption and top-line pressure in the near term,” it added. The new FDI rules may require Flipkart to remove as much as 25% products from its platform including smartphones and electronics that constitute a bulk of sales, said Morgan Stanley. On February 1, the disruption was caused in the e-commerce operations in India of the two companies after the new FDI norms for the e-commerce sector came into effect. The norm prohibited the online retailers from mandating any company to sell their products exclusively on its platform.
