India’s Ports Handle Increasing Numbers of Containers

According to the Journal of Commerce, container volumes increased this year by 6.3 percent from May to September at India’s major ports over the same period last year, reports the Maritime Executive.

TEU volumes for Kolkata were up 17 percent; up by five percent at Tuticorin; Visakhapatnam volumes were up 132 percent;  and DP World-operated Vallarpadam Terminal volumes were up 20.5 percent.

International Container Transshipment Terminal in Kochi, India

Statistics for the Jawaharlal Nehru Port Trust in the western state of Maharashtra:

  • Accounted for 2.26 million TEUs, representing more than 50 percent of India’s total containerized traffic
  • Turnaround time for one ship was reduced to 2.01 days from 2.85 days
  • Aims to handle 10 million TEUs by 2021, after a new terminal is commissioned.

Statistics for the DP World operated Mundra International Container Terminal in the western state of Gujarat:

  • Achieved a rate of 49.5 moves per crane per hour while handling the Maersk Line vessel Seroja Lima
  • The 8,520-TEUs Seroja Lima was unloaded, loaded and departed within a time frame of less than 10 hours
  • Achieved a productivity rate of 180 moves per hour at the main berth having four twin-lift and 21-across quay cranes

Prime Minister Modi wants to develop ports that can shift freight onto vessels capable of carrying 18,000 TEUs.

 

October 22, 2016   No Comments

Asia Competitive Institute Ranks India’s States for Ease of Business

In a study done by the Asia Competitive Institute which is part of the Lee Kuan Yew School of Public Policy, the Indian states of Maharashtra, Gujarat, Delhi NCR, Goa and Andhra Pradesh are rated as the top five of 21 sub-regional economies in ease of doing business in India.

Maharashtra, Delhi NCR, Tamil Nadu, Gujarat and Karnataka, were rated as the most competitive states, as well as states that lead in attracting foreign direct investment accounting for over 50 percent of the total FDI inflow into the country, said Sasidaran Gopalan, research fellow at the institute.

States of India

States of India

India’s appreciating real effective exchange rates have not significantly affected FDI inflows over the last decade, reports Bloomberg.

“The impact of real exchange rates on FDI in India has been rather negligible so far,” Gopalan pointed out, citing the finding from a recently concluded study by the institute for 2000-2013. The research study, however, also concluded that the volatility in Indian rupee “actually appears to induce more FDI into the country”.

September 17, 2016   No Comments

Andhra Pradesh to Set Up First Medical Device Park

India’s eighth largest state of Andhra Pradesh situated in the southeastern part of the country, is moving forward with a first medical device park in Asia dedicated to manufacturing medical devices. The park will span 226 acres at Visakhapatnam, the state’s largest city. India’s state-cabinet has approved funding of the Andhra Pradesh Medtech Zone (AMTZ).

Rana Mehta, partner and leader for the health care division of leading accounting firm Pricewaterhousecoopers Private Limited, told Medical Device Daily, “In addition, facilities and incentives for manufacturing, such as the availability of electricity 24 hours every day, good connectivity with the rest of India, land for industrial purposes, creation of common facilities in the park and good governance also make Vishakhapatnam a good destination for manufacturing.”

“The next in pipeline are Maharashtra at Nagpur City and Gujarat. These are still at the preliminary discussion stage. AMTZ is seeing the fastest progress as yet,” Rajiv Nath, forum coordinator at the Association of Indian Medical Device Industry told Medical Device Daily.

Districts of Andhra Pradesh

Districts of Andhra Pradesh

AMTZ will have common manufacturing facilities such as specialized laboratories, warehouses, and testing centers. Small and medium-sized enterprises will be located in 100 to 150 independent manufacturing units, each in a built-in ready-to-use area of half to one acre each . High-end medical device manufacturing aimed at import substitution as well as looking for export opportunities, will also be accommodated. The average monthly rental will be less than $2000.

According to research firm GlobalData, India’s medical device sector is currently worth more than $5 billion and is projected to hit $17.6 billion by 2020. So far, over 50 companies have shown interest and 38 companies have submitted expression of interest letters after the Andhra Pradesh government sent out invitations to potential investors.

 

 

August 7, 2016   No Comments

India Snack Wars Escalate

India’s domestic snack makers and imported brands are vying for the top spot in the salted snacks category. Companies in the multinational camp are PepsiCo and ITC (both of which manufacture their foods in India)  Regional companies include Haldiram Foods, Parle Products, Balaji Wafers, and Prataap Snacks. Economic Times reports a study by London-based global researcher Euromonitor, which shows that between 2013 and 2015, while Lay‘s lost share from 51.1% to 49.5%, local players Balaji Wafers, Haldiram’s and Prataap Snacks have steadily gained share every year.

Euromonitor Chart

 

A PepsiCo spokesperson said the firm would not be able to comment on specific market share data, and that the company “strongly refutes” the notion that it lost market share in potato chips in 2015.”We gained share in the potato chips category last year on the back of continued momentum on Lay’s, strong growth of Uncle Chipps, successful premium innovations like Lay’s Maxx and strong consumer engagement programs around the [cricket]World Cup. We believe that PepsiCo is further strengthening its position in the potato chips category,” the spokesperson said. Three years ago PepsiCo had initiated talks to buy a majority stake in Balaji Wafers, the four-decade-old company based out of Rajkot, in the western state of Gujarat, but was offered a minority stake. “We have risen from the grassroots, do not spend on marketing and invest heavily on technology and flavors,” Balaji Wafers managing director Chandu Virani said.

This year Lay’s has introduced Crispz and Twitz, at two price points: 8 cents and 30 cents. The company plans to market them in tier-II and III town and cities to counter competition from regional salty snacks players. Pepsico, is also scaling up its $1-billion-plus Doritos snacks brand.

India’s $2.75 billion  salty snacks market includes a large number of fragmented players. Regional players operate on lower fixed costs, sell on lower price points, and bank heavily on localized flavors.

 

 

 

 

 

June 9, 2016   No Comments

Sustainable Cotton Program Extended to 10,000 Women Farmers in India

Primark, a retailer in the U.K. that markets readymade apparel, home goods and beauty products, has extended a sustainable cotton initiative in India to 10,000 women farmers. The initiative involves a partnership between Primark, CottonConnect and the Self Employed Women’s Association.

Under the Primark Sustainable Cotton Program, women in Gujarat, are trained to improve cotton yields, increase their incomes, and introduce sustainable farming methods, reports cips.org.

A pilot, launched three years ago, saw 1,251 women smallholders increase their average profits by 211% and yields by 12.6%. There was also a 5% cut in input costs, a 12.9% reduction in water use and fertilizer and pesticide use fell.

One of the cotton farmers in the program

One of the cotton farmers in the program

Paul Lister, responsible for Primark’s ethical trading team said, “Primark has been working hard for the last decade to ensure that the rights of workers within our global supply chain are respected, and the lives of people working within the garment industry in emerging markets change as industrialization brings new jobs and opportunities.”

Alison Ward, CottonConnect’s CEO stated, “We find that women do not attend mixed training sessions, so the knowledge that this program has brought them will go a long way to building a better life for them and their families in the future. It’s also great to see how proud their husbands are of their work.”

Reema Nanavaty, leader of Self Employed Women’s Association remarked that giving women access to full employment was one of the best ways to drive societal and economic change.

April 11, 2016   No Comments