S. Korea’s Lotte Acquires Ice Cream Maker in India

South Korea’s Lotte Confectionery bought Ahmedabad, Gujarat-headquartered ice cream maker Havmor Ice Cream Ltd for $150 million  in an all cash deal. Privately held Havmor, worked with KPMG, Veritas Legal and Dhruva Tax Consultants, to seal the deal. It is the first time that a South Korean company has entered the food space in IndiaAnkit Chona, managing director, Havmor, said that he would continue to manage the company for Lotte for the foreseeable future.

Havmor was founded in Karachi – then part of India –  by Satish Chona in 1944. Immediately after partition in 1947, Havmor moved operations to India and set up its base in Ahmedabad. In 1951, it started as a handcart venture, and by 1953  the company’s first shop was set up, reports the Business Standard.
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Havmor has a 3.5-4 percent share of the  $1 billion (Rs 6,000 crore) Indian ice cream market, which is growing at 10 percent annually. 

November 24, 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

Foreign Investment into India at All-Time High

According to India’s Department of Industrial Policy and Promotion,  cumulative foreign direct investment (FDI) into India reached $498.9 billion in the 17 years from April 2000 to June 2017. During the last two financial years,  FDI flows into India totaled $114.4 billion says a new KPMG report; this is an incredible forty percent higher than the three years preceding.

“In the financial year 2017, the country received the highest-ever FDI flow worth $43.5 billion,” KPMG said. UAE investors such as the  Abu Dhabi Investment Authority, NRI-Emirati Investor’s Group announced $2.5 billion worth of investments in India last month alone.

 

Magazine with Investment Report written on itReaders of this blog know that companies such as Coca Cola and PepsiCo have committed to investing over $5 billion in India in the next five years. In the last 12 months alone, The India Expert has reported on billion dollar investments by  Dell-EMC , by Juniper Networks and by Canada’s Brookfield, while FoxConn of Taiwan has committed to $5 billion. We have also blogged about  industry reports indicating $8 billion into India’s automotive business and $4.2 billion into India’s real estate.

Tim Worstall of Forbes notes that FDI inflows into a country is a good thing, but this cannot happen unless there is also a current account, or trade, deficit. What needs to be recognized is that they are the same thing: the balance of payments does indeed balance, always and everywhere. This underscores India’s status as an island of economic stability, especially as FDI flows worldwide slumped 13% in 2016 . India’s FDI in the April-December period rose 22% to $35.8 billion from the year earlier.

The Government of India liberalized the country’s FDI policy in the last two years to bring several sectors under the automatic approval route as part of efforts to encourage overseas investment. “India also witnessed an increase in private equity/venture capital investments led by its growing start-up segment. Between January and September 2017, India received $17.6 billion of private equity and venture capital spread across 402 deals,”  the KPMG report added.

fDi Intelligence, a division of The Financial Times Ltd., says that India retained its position as the world’s topmost greenfield destination for Foreign Direct Investment for the second consecutive year, attracting  $62.3 billion in 2016.  In the 2017 A.T. Kearney FDI Confidence Index,  India jumped one spot to rank 8th. According to Kearney, 70 percent of the respondents planned to maintain or increase their FDI in India in the coming years. Reform efforts by the current government have improved the country’s investment environment. India’s vast domestic market is an added attraction for foreign companies

November 6, 2017   No Comments

DHL to Expand Warehouse Capacity in India

India’s rising e-commerce transactions coupled with the effect of introducing GST, the consolidated tax regime, will boost freight movement, and Deutsche Post DHL Group is getting warehouses ready for future business.

India’s e-commerce market, which currently logs 1.2 million transactions daily, is estimated to jump 31 percent annually over 2017-2020 to $80 billion, tax and advisory services company KPMG said in an August 2016 report. According to Knight Frank India Private Limited, the total warehousing requirement in the country’s top seven markets will rise to 839 million square feet by 2020 from about 621 million in 2016.

“We see business-to-consumer as the next big challenge, a big growth area and we really want to tap into that through businesses such as modern retail,” said Vikas Anand, Mumbai-based managing director at DHL Supply Chain India Pvt. Anand added that the company has an 8 to 10 percent share of the $3.5 billion Indian market, reports Bloomberg.

A warehouse

DHL India says its sales have grown at about 30 percent annually over the past five years, double its estimate of the contract-logistics industry average, and that it expects to maintain its pace. It plans to invest more than $100 million in additional capacity in the next three to four years. It also intends to bolster its transportation network by using railroads where it can to improve time and fuel cost efficiency.

 

 

August 18, 2017   No Comments

USIBC Launches India Civil Aviation Task Force

The US-India Business Council (USIBC) launched an India-Task Force on civil aviation to focus on identifying opportunities for implementation based on the National Civil Aviation Policy. Palash Roy Chowdhury, managing director-India, Pratt & Whitney will chair the entity, and Amber Dubey, partner and head of aerospace and defense, KPMG in India will be the co-chairman.

“India has witnessed annual growth exceeding 20% in domestic traffic with total passenger traffic estimated to reach 270 million by end of this year,” USIBC said, reports the Times of India.

Jet Airways

Jet Airways

USIBC president Mukesh Aghi said, “Our member companies are committed to the success of the government’s flagship programs such as the Regional Connectivity Scheme and Make In India, and bringing the best in technology in related areas such as airport infrastructure and security, MROs and skill development.”

June 29, 2017   No Comments