Category — Economy

India Best Country for Wall Street Says Forbes

New York-based Wisdom Tree, that pioneered the concept of fundamentally weighted Exchange Traded Funds (ETFs)  and active ETFs, says  that its India Earnings (EPI) Fund is up 12.8% year-to-date and is ahead of China, Indonesia, Thailand, Vietnam, South Korea and Japan.

Gaurav Sinha, strategist for Wisdom Tree said, “If you look across the countries the IMF tracks worldwide, how many can you name that are growing over 7%? Iraq, Myanmar and India, and India is the only large economy that has those numbers and that you can buy in the equity markets.”

Indian Currency

Forbes reports: “Prime Minister Modi continues his plans to cut red tape, root out corruption, upgrade infrastructure, improve the fiscal position. No trade drama. No political crisis. No wars and rumors of wars. Reliable central bank. Stable government. A little expensive, but these days, who cares?”

India’s recent demonetization caused a temporary economic slowdown; however, recent company visits confirm that the economy is beginning to normalize.  Gerardo Zamorano, director of the investment group for Brandes in San Diego says, “From my perspective, that policy [demonitization] did not change the long term outlook on India that much. If you’re the owner of a car dealer or a restaurant business, this might affect you next week or so, but not for a decade. That’s how we think of India. It’s a long term investment for Brandes.”

Robin Parbrook, head of Asia ex-Japan equities at Schroders, says India remains the best domestic story in Asia at the moment. “The base is low in India, so the building of roads, provision of mobile telecom networks, formal banking to the masses, and rooting out of middlemen and corruption can all make a big difference, ” he feels.

 

 

 

March 5, 2017   No Comments

In India, Investments by Logistics Companies Surge

Logistics companies — both from India and globally — are actively making investment plans for the coming fiscal  year.

According to Kuwait-based Agility’s Emerging Markets Logistics Index published in February,  India, for the second consecutive year, was picked as the country with the most potential to grow as a logistics market. The report, referenced by Business Standard, surveyed more than 800 supply chain and logistics professionals. It stated that GST would be the potential game-changer and companies will have to re-gear themselves to adjust to the new tax regime. Surveyed entities also indicated that India was the leading emerging market destination for investment by their companies over the next five years.

In 2016, France’s FM Logistics entered the market in India by acquiring Pune-based Spear Logistics, and  Stephane Descarpentries, the company’s director-strategic projects and director operations Asia said, “We see a good growth potential for warehousing segment in the domestic market and would have invested even if GST was not round the corner.” The company plans to invest $50 million over next three years to strengthen its warehousing base across the country. “With the e-commerce segment growing in India, we see the need for better warehousing across country and hence this acquistion,” explained Descarpentries. In the short-term, the company plans to invest $5 million over next 8 months on ramping up the custom-built warehouses of Spear Logistics.

Logistics

Gurgaon-based e-commerce logistics firm SSN Logistics Pvt. Ltd, which owns the brand Delhivery, is in advanced talks to raise $100 million led by private equity firm The Carlyle Group with participation from China’s Fosun, according to a media report cited by VCCircle. If the deal works out, it will mark the largest funding round in the e-commerce logistics space.

 

March 2, 2017   No Comments

Alibaba Invests $200 Million in India’s Paytm

Valuing India’s Paytm E-Commerce Private Limited at about $1 billion, China’s Alibaba Group Holding Limited, will invest $180-200 million in the online retailer, taking the stake of Alibaba and its affiliate Ant Financial to more than 50 percent.

Paytm e-Commerce is an entity created by Noida-based One97 Communications Ltd., which was valued at $5 billion last year, and e-commerce constitutes 20 percent of its business. Paytm will continue to be the vehicle for Alibaba’s e-commerce play in India, and is expected to spin off the e-commerce business into a new mobile application and a separate website in February, named PaytmMall—inspired by Alibaba’s T-mall in China, reports Mint.

Paytm ad

Paytm, which started operations as a mobile payments and mobile recharge business, created a web of payment solutions in the offline and online channels where consumers can transact via the Paytm wallet. Founder Vijay Shekhar Sharma has India’s Central Bank’s approval to launch a payments bank by the end of February.

 

 

 

February 12, 2017   No Comments

Canadian Investments Surge in India

Canadian institutional money is pouring into India. One of our  earlier blogs talks about Toronto-based Brookfield acquiring the telecom towers of India’s Reliance Communications. The Brookfield-Reliance Infratel transaction worth $1.6 billion is the second-biggest private equity transaction ever in the country.

Last October, in one of India’s largest deals in the commercial property space, Brookfield Asset Management acquired Hiranandani Group‘s 4.5 million square feet of offices and retail space in Powai, Mumbai, for approximately $1 billion.

Canadian currency

Canadian asset managers from pension or PE funds have been the biggest investors in the last one year, reports the Economic Times. The Canadian Pension Plan Investment Board or CPPIB, Caisse de depôt et placement du Quebec (CDPQ), Ontario Teachers Fund, PSP Investments, Brookfield and Fairfax, have jointly committed around $7-8 billion across companies and funds so far, according to industry estimates. This investment is among the single-largest country-wide commitment towards India in recent times.

“Our long investment horizon aligns to the financing and capital needs of India’s economy, growing entrepreneur culture and the strength of business in the country,” says Suyi Kim, Managing Director, Head of Asia Pacific at CPPIB.

February 10, 2017   No Comments

G-20 Seeks to Enhance Digital Trade in Member Countries

The G-20 forum has asked member countries to report on their readiness to engage in digital trade; it  also seeks suggestions from them on how the WTO can promote e-commerce and measure the digital economy.

“The German G-20 presidency aims to develop a conceptual framework for measuring cross-border digital trade,” the forum said. “In addition, the G-20 could explore the applicability of WTO rules for digital trade, including potential limits of and gaps within these rules, and assess its development dimension,” it added.

E-commerce

G-20 noted that the adoption of e-commerce is uneven (India does not allow foreign investment in business to consumer e-commerce retail), and it urged SMEs in developing countries and less developed economies to participate in online trade. India has reservations about e-commerce getting included in the WTO’s agenda. However, the Economic Times feels that the way forward for India is to have proactive norms in place, as also investor-friendly policy guidelines so that potential investors can actualize their e-commerce strategy

February 9, 2017   No Comments