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’s Ardom Telecom Acquires Texas-based Quanta Towergen

Gurgaon, India-based Ardom Telecom, a telecom infrastructure operation and maintenance company, has acquired U.S.’s Quanta Towergen Private Limited in an all cash deal. Quanta Towergen is owned by Houston Texas-based Quanta Services which struck this deal via their Netherlands-based special purpose vehicle.

Ardom Telecom Towers

In the last few years, Quanta has invested  $14.5 million to create solar energy generation facilities on various telecom tower sites and its remote monitoring mechanism, reports the Economic Times. This acquisition will help Ardom to provide solar power on telecom tower sites spread over the states of Uttar Pradesh , Bihar, Jharkhand, Madhya Pradesh, Assam and North-East India.

 

 

April 6, 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

Warburg Pincus Invests in India’s Movie Theaters

New York City-based private equity firm Warburg Pincus, LLC., has acquired a 14% stake in PVR Limited, India’s largest cinema chain headquartered in Gurgaon, for about $120 million. The stake was bought from PVR’s existing investors, private equity firm Multiples Alternate Asset Management and PVR’s founders, including chairman and managing director Ajay Bijli.

“The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth,” said Vishal Mahadevia, Warburg Pincus India managing director and co-head.

PVR Cinema

The Hollywood Reporter quotes a report by consultancy firm PricewaterCoopers, that says box-office revenue in India is estimated to reach $2.74 billion in 2020, up from $1.64 billion in 2015, growing at an average annual rate of 10.9 percent, even though India still remains a market with low screen penetration.

 

January 24, 2017   No Comments

India’s GreyOrange Offers Warehouse Automation

Engineers Samay Kohli and his colleague Akash Gupta have created GreyOrange a robotics supplier whose products support online retailing not only in India, but internationally too. Based in Gurgaon, India, GreyOrange says it has 90% of the warehouse automation market in India, and it works with leading e-commerce and logistics firms in the country, reports the BBC. The company has eight offices in five countries and employs more than 650 people.

GreyOrange has two kinds of robots that help warehouses become more productive: Butler, an artificial intelligence-powered robotic system, can pick products from shelves in the warehouse. ”A single person would pick about 100 to 120 items in one hour. With our Butler robot, he is able to pick 400 to 500 items every hour,” Kohli says.

Sorter, automates the sorting of outgoing packages in a distribution center, and the pair of robots can potentially sort three million packages every day. The founders say, “It’s [AI] a trillion-dollar opportunity, that’s the space we’re fighting in.”

GreyOrange Sorter 1500

GreyOrange Sorter

Some of their clients are Kerry Logistics, Jabong, Flipkart, Aramex and Gojavas.

 

January 24, 2017   No Comments