Category — Consumer Goods

Amazon Considers Inorganic Growth in India

After buying Whole Foods in the United States, Amazon is targeting groceres in India. Bangalore, India-based BigBasket, a five-year-old e-grocer, has signed a 60 day exclusivity agreement with Amazon India  during which time Amazon will conduct a due diligence on the company’s assets with a view to acquisition

Valued at $450 million since its last round of funding, BigBasket’s asking price of  $700 million stalled the transaction, reports ET Retail. A final value will be decided once the inquiry is completed successfully. It is uncertain whether Amazon will go ahead with the final deal and so BigBasket is also on the lookout for fresh capital.

BigBasket Logo

Acquiring BigBasket, which has created a supply chain and back end infrastructure, will add to Amazon’s e-commerce growth; it will also enable Amazon’s entry into the hugely untapped grocery and food market in India. Technopak pegs the grocery and food market in India at $400 billion of which organized retail contributes $12 billion to the industry, while online e-grocers have a 4% share, its report said, outlining viable prospects for the players.

June 21, 2017   No Comments

India May Implement Food Fortification Regulations

The Food Safety and Standards Authority of India (FSSAI) is promoting the introduction of micro-nutrients in staple foods to fight malnutrition.

“We are trying to encourage brands to fortify their products. We are targeting five staple foods including rice, wheat, milk and edible oil for fortification,” FSSAI CEO Pawan Kumar Agarwal said at an interactive session with the Bharat Chamber of Commerce on food safety.

Business Standard reports that currently the government does not have any plans to make fortifying staple foods mandatory, but it will monitor the situation. “If voluntary acceptance is low then government may take steps to make it mandatory,” added Agarwal. 

If you have any queries or need more information on the Food Safety and Standards (Fortification of Foods) Regulations 2017, please contact us and we will respond.

Logo for Fortified Foods

June 20, 2017   No Comments

Tesla Seeks Import Duty Waiver Till it Can Make in India

Founder and CEO Elon Musk tweeted that Tesla is pushing for import tax waivers to launch its vehicle in India.

Musk  has shown support for India’s plans to have only electric cars on its roads by 2030. According to BusinessLine, India’s government is willing to talk to Tesla while also clarifying that the local sourcing norms don’t apply to cars.

Import duty of cars in India is as high as 125%. Completely-built electric cars priced less than $40,000 attract 60 percent customs duty. However, if assembled in India, the duty on a completely knocked down unit is 10 percent.

Tesla Cars

June 19, 2017   No Comments

Coca-Cola Brings its ‘Fruit Circular Economy’ Concept to India

Atlanta-based Coca-Cola, its bottling partners, fruit suppliers, and processors in India, will invest $1.7 billion in India’s agricultural ecosystem over the next 5 years, according to the company. The company’s Fruit Circular Economy concept will span the entire supply chain from fruit orchards to the final product. “The investments announced today by Coca-Cola will further catalyze economic growth and create new opportunities for farmers and local suppliers,” said T. Krishnakumar, president, Coca-Cola India and Southwest Asia

Mango orchard

$800 million will be reserved for procuring fruit pulp and fruit concentrate for the company’s juice and juice drinks and carbonated drinks with juice products. The remaining will be invested on manufacturing lines, bottling infrastructure, fruit processing plants and equipment, and agriculture interventions that facilitate sustainable agriculture. Coca-Cola’s technology and production methods will conserve soil, water, energy and biological resources, reports the Business Standard. The company says that over 200,000 farmers will benefit from this plan of sourcing fruit pulp and fruit concentrate out of 2.10 million tons of fruit.

The company also procures and exports raw materials and ingredients worth $280 million from India to 44 countries.

 

June 19, 2017   No Comments

Over 50 Global Retailers to Set Up Shop in India

More than 50 mid-rung global retailers are planning to enter India within the next six months, according to data compiled by Franchise India. The majority of the brands are from the United States and Singapore, and they will invest $300-500 million in India.
The Economic Times reports that the latest brands are mostly smaller ones that rely on the franchise system for global expansion. These companies want to focus on smaller and untapped markets such as Tier 2 and 3 cities. Of the incoming brands, 18 are in the food and beverage space followed by 13 each in apparel and lifestyle products and education products.
Retail Marketing
Recently, India replaced China as the most promising retail market in the world, according to an AT Kearney report. The report said, “Government efforts to boost cashless payments and reform indirect taxation with a nationwide goods and services tax are expected to accelerate adoption of modern retail.”

The Indian retail market is expected to reach $1.6 trillion by 2026, growing at a compounded annual growth rate of 10%, according to the India Business of Fashion 2017 report. With food and grocery retail just 3% of the overall market, several global food chains sense an opportunity in India.

June 19, 2017   No Comments