Category — India Market Expansion

iPhone Assembler to Expand Operations in India

With Apple‘s earnings in India doubling year-on-year, Taiwanese manufacturer Wistron, primary iPhone assembler in India, is scouting for 100 acres of land in Bangalore to expand its facilities.

Though Apple is currently a minor player in India, its potential is huge. CEO Tim Cook said on the earnings call in early November that there was much work to be done to fulfill this potential.

He said he’s confident the company can gain ground, but it will take work on many fronts.”It’s building stores. It’s building channels. It’s building markets. It’s building the developer ecosystem,” he said. “It’s having the right product lineup for the market. And I feel like we’re making good progress there and are gaining understanding of the market, but we still have a long way to go.”

Picture of PM Modi and Tim Cook

The India government’s Department of Industrial Policy & Promotion wrote to the firm saying it was “actively involved in resolving issues raised by Apple” and the various key departments in charge of vetting these concessions are “positively inclined to the proposal,” according to a document from an official to Apple that was reviewed by Bloomberg News.

November 12, 2017   No Comments

DHL Connects its India Trucks via Internet

Bonn, Germany-headquartered global logistics group DHL is planning to introduce internet-connected trucks and emulate Haryana, India-based technology-enabled logistics start-up Rivigo‘s “driver relay model” to improve customer experience and increase efficiency,

Rivigo, which launched in 2014, has a fleet of over 2,000 internet-connected trucks fitted with sensors for location tracking and real-time data. The company operates through a unique driver relay model: multiple drivers are appointed for one route and each one typically drives for four to five hours before handing over the truck to another driver at a pit stop, returning home with another truck. The company has at least 70 such pit stops across India. According to the Rivigo’s website, the driver relay model helps it reduce transit time by 50-70% from the industry average. DHL is planning to follow the same model and is in the process of building a team and fleet of trucks.

DHL Logistics

Live Mint reported that according to an industry expert, the logistics space offers significant potential for value creation and the sector is seeing some major disruptions due to better infrastructure, policy, and technology. “We see many new players and start-ups trying to capitalize on this opportunity. But, it is also a good setup for traditional logistics players to re-evaluate their business model and plan for breakthrough growth,” said Mayank Bansal, partner, Transportation and Infrastructure, at consulting firm AT Kearney.

 

November 10, 2017   No Comments

India to Get its First Cartoon Network Themed Park

Turner International India, a division of New York City-based Times Warnerand the Rajgreen Group of Companies based in Gujarat, India, announced a 10-year partnership in Amaazia — India’s first Cartoon Network-branded amusement park. The Rajgreen Group invested $66 million in the venture which is located at Surat in the state of Gujarat. Amaazia is expected to be operational by the first quarter of 2019. 

Spread over 657,00  square feet, the park has been conceptualized and designed by the Sanderson Group, Australia. Planned as a family entertainment destination, the park will have 33 rides and attractions featuring popular Cartoon Network characters, 20 unique water-slides, a water park, a family recreational hub, and a retail shopping area. The venture aims to tap one million footfalls in its first year of operations, reports Business Line

Sanjay Movaliya, chairman, Rajgreen Group, said, “Our audience today is well-travelled and exposed to global entertainment venues. Our aim is to create a similar experience closer home, via our association with a hugely popular global brand like Cartoon Network.” 

A section of a roller coaster

According to a KPMG report, the Indian theme park industry grew at 10.25 per cent in 2016 to reach $466 million, up from $426 million in 2015.

November 10, 2017   No Comments

Google Cloud Platform Launched in India

Google announced that its first Google Cloud Platform region in Mumbai, India, is now live. It offers several services including computing, big data, storage, and networking. Customers will be able to pay in Indian currency for the services. The launch marks Google’s entry into this domain in India where it trails Amazon and Microsoft.

Google Cloud Platform’s product manager Dave Stiver said that hosting applications in the new region can improve latency from 20-90 percent for end users in Chennai, Hyderabad, Bangalore and of course Mumbai, compared to hosting them in the other closest region, Singapore. Other cloud regions in Asia Pacific are hosted from Taiwan, Sydney and Tokyo, reports the Economic Times.
Google India Logo
Google said  it will have three such centers across the country, without spelling out the investment, though it has earmarked $30 billion of investments for the cloud offerings. Forbes says Google’s entry heats up the competition while opening up additional opportunities for the local ecosystem. The company can now join its competitors to bid for government projects. Many state governments and large public-sector enterprises are considering their move to the cloud.

November 9, 2017   No Comments

Indian and Foreign Companies commit to $11 billion in Food Sector

Speaking at World Food India 2017 in New Delhi,  India’s Finance Minister Arun Jaitley said, “Food processing is going to be one of the principal industries of India in the future. The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference.” Jaitley holds one of the most powerful posts in Prime Minister Modi’s cabinet and is considered part of his trusted inner circle.

Food processing

Food processing

The three-day food fair ended with 50 memoranda of understanding  signed and an investment commitment of $19 billion of which $11.25 billion will be from the private sector.  For example, PepsiCo signed an MoU worth $2 billion  to set up a food and beverage plant, Coca Cola will invest $1.7 billion in juice bottling and fruit processing plants and equipment, while Indian companies ITC and Patanjali committed an investment of  $1.54 billion each in this sector. Amazon signed an MoU in the food retail sector.

The Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, reports India Retailing. The sector has been growing at the rate of 12 percent annually.

Food Processing Minister Harsimrat Kaur Badal said, “100 percent foreign direct investment is   allowed in this sector through the “automatic” route and we have seen inflows increase 40 percent over the last year.” The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she added.

 

 

November 7, 2017   No Comments