Category — Market Entry

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

Dassault Brings Largest Defense FDI to India

Dassault will emerge as the single largest FDI investor in the defense sector. The cumulative FDI in the defense sector in India till date is $6 million,” Rajesh K. Dhingra, president, Reliance Defense & Aerospace, said at an interview with the Economic Times.

France’s Dassault will manufacture a significant part of Rafale aircraft in India. The first tranche of $29 million  intended for the manufacture of aircraft components for global markets is likely to come into the Dassault-Reliance Aerospace Limited joint venture by July. The investment is part of Dassault’s obligations on Make in India commitments against the $9 billion Rafale fighter jet deal.

Rafale Jet

The JV will create infrastructure at the Mihan facility in the state of Maharashtra. The plan is to set up a 100-acre facility that will integrate a supply chain for the Rafale fighter jet in India. The ground breaking ceremony is planned for the end of July.

June 9, 2017   No Comments

Clean Motion Expects India Largest Market for its Electric Rickshaws

Clean Motion India, a subsidiary of Clean Motion AB, Sweden, rolled out its three-wheeled electric  rickshaw or  “pod” called the Zbee in 2016. Certified in the L5 category by the International Center for Automotive Technology, these electric vehicles are gaining acceptance in India.

Business World interviewed Anil Arora, Country Head, Clean Motion India who shared his insights into the future of this e-vehicle in India:

Arora said that the third generation of this vehicle are used in malls in Gurgaon, and Noida, near Delhi. “We would like to be integrated as a connected electric vehicle for Greenfield smart cities. We will go for subscription-based models and are in talks with five-star hotel management in multiple cities to operate our vehicles. Yes, we do have such plans for South East Asian markets. We are starting our shipment to Nepal and Sri Lanka,” said Arora.

Zbee the elctrical vehicle

Currently most of the 230 components for building this vehicle are imported from Sweden, and the company is localizing the product at their  manufacturing facility at Faridabad in India’s northern state of Haryana. “We are aiming for a 70 percent localization which will enable us to bring down the price of the vehicle. The automotive ancillary industry even for e-vehicles is very good in India,” mentioned Arora.

By 2020 the company aims to have a valuation of $150 million. “The key growth drivers will be widespread expansion and mass acceptance of our products. In fact, India is expected to be the biggest market for us globally,” Arora added.

June 8, 2017   No Comments

Mexico’s Grupo Bimbo Enters India

Mexican company Grupo Bimbo, the world’s biggest baked goods manufacturer acquired a 65 percent stake in Jaipur, Rajasthan-based Ready Roti for an undisclosed amount. The move is a sign of Bimbo’s interest in emerging markets.

Ready Roti manufactures many kinds of breads, buns, pizza bases, as also rotis or Indian bread under the brand name Harvest Gold.

A packet of Ready Roti

Just-Food reports that Ready Roti has four plants and more than 500 workers, and that its annual sales are about $48 million.

 

May 30, 2017   No Comments

CPPIB to Form JV with India’s IndoSpace Realty

Canada Pension Plan Investment Board (CPPIB) plans to invest up to $1.2 billion in a joint venture with Mumbai-based IndoSpace, an industrial real estate-focused investment firm jointly owned by private equity investor Everstone Capital and Maryland-based Realterm Global.

Key Highlights:

  • Canada Pension Plan Investment Board and IndoSpace form IndoSpace Core, a joint venture that will focus on acquiring modern logistics facilities in India.
  • CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake.
  • IndoSpace Core has committed to acquiring 13 well-located industrial and logistics parks totaling approximately 14 million square feet, from current IndoSpace development funds.
  • The venture also has the option to acquire an existing pipeline worth approximately $700 million as well as participate in a future development pipeline.

A warehouse

Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB.

The Canadian fund, which has invested about $3 billion in India since 2010, has been ramping up its India play over the past couple of years. Last month, the Toronto-headquartered fund formed a joint investment platform with Mumbai-based developer The Phoenix Mills Ltd to develop, own and operate retail-led mixed-use developments in India, reports VCCircle.

 

 

 

May 16, 2017   No Comments