Category — Consumer Goods

Apple Looks to Expand in India

India has offered to allow Apple Inc., to import mobile handset components intended for use in local manufacturing tax free; but these concessions will be subject to the condition of increasing local value addition over a period of time.

Aruna Sundararajan, Secretary at the Ministry of Electronics and IT told Reuters, “We have offered them tax exemptions on those components which could not be manufactured in India.” She added that Apple will need to increase the local manufacturing component gradually in phases of 3, 5, 7, and 10 years as the local capacity builds up.

In mid-May, Apple‘s OEM partner, Wistron, started assembling the iPhone SE in Bangalore, India, in order to lower the price point and make it more affordable to Indian consumers.

Ravi Shankar Prasad, the federal minister for Electronics and IT said that Apple had approached the Indian government to expand Wistron’s facilities in Bangalore, and that government officials were in touch with Apple for expanding the facility and setting up new plants.

apple-ipad_1

May 26, 2017   No Comments

India’s New Business Opp: Air Conditioners and Power Plants

The Lawrence Berkeley National Laboratory, a specialist in international energy, says that India has four of the five most populous cities with the highest cooling requirements in “cooling degree days,” a measure of the number of degrees above 65º surpassed in a year, and is “poised for an explosion in room air conditioning that may require as many as 300 new electric power plants in the next 10 to 15 years.”

 Chart showing Cooling Degree Days in India

At a seminar hosted by the Stanford Precourt Institute of Energy, Dr. Nikit Abhyankar, a senior scientific engineering associate at the Berkeley Lab who leads the International Energy Studies Group’s work on the Indian power sector, said, “All the cities [in India] are very hot and very populous, which means that going forward, as people get richer, the demand for room air conditioning is going to be increasing.” Abhyankar adds that with the right policy support from the Indian government, India could innovate in manufacturing far more efficient air conditioner models that use refrigerants that do not contribute to global warming.

Forbes reports that air conditioning is expected to double the country’s electricity demand in 15 years, requiring 300 new electric plants just to keep Indians cool. Air conditioning is part of the reason India is expected to be the world’s largest contributor to new electricity demand between now and 2040.

 

May 15, 2017   No Comments

In India, Montblanc’s Luxury Goods Looking Up

European luxury firm Maison Montblanc, which has a joint venture with India’s Bangalore-based Titan, is looking at a turnover of $100 million  over the next four years. The joint venture currently has seven boutique stores, and Titan’s managing director Bhaskar Bhat said, “We have a plan for about 25 stores under the joint venture … which is a five year journey plan, but we believe we can do it faster.”

Titan Logo

Business Standard reports that the boutiques will sell writing instruments, watches, men’s accessories and leather goods. “Large cities are our primary thrust for stores. We will explore some online [business] because the non-metro customer certainly has an allure of MontBlanc. We are not considering physical stores in non-metros right now,” Bhat added.

 

May 9, 2017   No Comments

India Contemplates Opening Up Food Retailing

Foreign food retailers may soon be allowed to sell personal care products made in India up to 25 percent of their total merchandise sales. India’s Department of Industrial Policy and Promotion has for the first time endorsed this proposal. The idea behind the move is to encourage “organized” (mass market)  retailers to source goods made in India.

The excerpt below is from an interview that India’s  commerce and industry minister Nirmala Sitharaman had with the Economic Times:

Economic Times: On food retail, are you looking at allowing more products? Could we see some announcement soon?

Sitharaman: There is a lot of discussion on it. We are already talking about what is grown and [can be] value added in India. The food ministry is saying that you would need something more to attract consumers. He would want to buy other things as well, like cosmetics.

The Seattle-based online retailer, Amazon, sought government permission to enter the food retail business in India. It proposes to invest $570 million in over five years to sell third party and its own private-label food articles, sourced and packaged locally. Other applications received by the government in food retail are from Grofers and Bigbasket.

While a political consensus needs to be reached for further opening of the retail sector, the government is also examining the proposal of opening up Foreign Direct Investment for all goods manufactured in India.

Food Retail

May 8, 2017   No Comments

Walmart to Set Up 50 New Outlets in India

Walmart will open 50 new wholesale  stores across India over the next three to four years which will be located in the states of Telangana, Andhra Pradesh, Maharashtra, Punjab, Uttar Pradesh and Haryana. President and CEO, Walmart Canada and Asia, Dirk Van den Berghe, said Walmart was committed to India, and the country with its efficient economy was an important market for them.

Each store will be spread over 50,000 to 60,000 square feet. The company will invest $10 to $12 million in each store which will serve 300,000 wholesale customers; hotels, restaurants, caterers, offices and institutions; and 30,000 mom-and-pop grocery shops.

Walmart Store

IndiaRetailing reports that Walmart currently sources 97 percent of the products within India. 15 percent of its merchandise is sourced from the region where its store is located. The company proposes to work with small and marginal farmers and offer training and education to all stakeholders in the value chain.

 

May 7, 2017   No Comments