Category — Consumer Goods

Foxconn to Invest $5 Billion in India

Taiwan-based Foxconn, the world’s largest contract manufacturer for electronics, will invest up to $5 billion in India to make the country a parallel manufacturing hub to China for export to key markets across Europe and the U.S. In India, Foxconn is keen on investing in a display fab unit, Computer Numerical Control machines, a lithium-ion cell factory, and facilities for printed circuit boards.

An executive of the company said, “India is already high on our priority list, and we now plan to step up investments and business here by opening new factories and expanding the manufacturing footprint.” The expansion will create employment opportunities in the country , the official said, adding that the company is in serious talks with many state governments.

Foxconn Logo

Foxconn manufactures phones for companies such as InFocus, Oppo, Xiaomi, Nokia and Gionee from its existing facilities in India. The official said that Foxconn will look at “vertical integration” for its operations in India, reports the Economic Times.

August 31, 2017   No Comments

Demand for Retail Space in India Surges

According to Los Angeles headquartered CBRE’s India Retail MarketView Report – H1, 2017, during the first 6 months of the year, there were 70 new entries/expansions by global and domestic brands across the cities of Mumbai, Delhi-NCR and Bangalore. Seven new global brands entered the country and investments into the segment by PE firms/wealth funds touched $200 million.

 Anshuman Magazine, chairman, India & South East Asia, CBRE said, “Our ranking on the 2017 Global Retail Index for developing countries as well as continued investment by private equity players is a demonstration of the sustained preference of international brands to set up, or expand their operations in India. With several legislation and policies in implementation mode, we are already seeing an increase in consumer and investor confidence. This will have a cascading effect on the retail segment. Overall, retail real estate will continue to grow and witness healthy demand across tier I and II cities.”

City Highlights

NCR

  • Approx. 200,000 square feet of fresh supply entered the market
  • Low vacancy levels led to select micro-markets in the city witnessing rental appreciation for prime retail developments

Mumbai

  • Leasing activity was driven by domestic F&B operators and foreign retailers from various segments
  • Over 1 million swuare feet of supply was added with opening of the  Seawoods Grand Central Mall
  • Rentals on Linking Road recorded a minor correction while rental values across other high streets and organized retail developments remained largely stable

Bangalore

  • Approximately 300,000 square feet of fresh retail supply entered the market
  • Rental values across high streets and shopping centers remained stable
  • In the coming quarters, sustained traction from both global and domestic brands may lead to rental appreciation in organized developments in the Central, Eastern and Western locations

CBRE says: Going forward, to effectively operate under the new GST regime, retailers will need to review their product pricing based on market expectations, align their supply chain and procurement strategy, rework their distribution channels, and ensure greater compliance to laws to be more cost-effective.

A Mall

August 19, 2017   No Comments

India’s Tata Launches Himalayan Mineral Water in U.S.

Kolkata-based Tata Global Beverages announced the launch of its premium natural mineral water brand ‘Himalayan’ in the U.S. market. Currently, Himalayan is marketed by subsidiary NourishCo, a joint venture between Tata Global Beverages and PepsiCo India, in Singapore and India.

The company said that its mineral water brand “will now enter the U.S. market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company, the maker of Sparkling Ice flavored sparkling waters, to distribute and market the brand.”

himalayan Sparkling Water

DNA reports that this his agreement will give Himalayan the benefit of Preston, Washington-based Talking Rain’s extensive go to market and execution capabilities in the U.S.

According to the company website, “The water is bottled at source from a pure and pristine underground moving stream aquifer, which is about 400 feet below the surface, located at the foothills of the Shivalik range in the Himalayas.”

 

August 19, 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

India Records Highest Market Share in Knitwear Exports to U.S.

India’s garment exports to the U.S. reached top position in market share in the ‘men/boys cotton knitwear shirts’ category for the first six months of 2017.

According to data released by the Office of Textile and Apparel, of the U.S. Department of Commerce, India exported 8.5 million dozen men/boys cotton shirts to the U.S. India’s share in men/boys knitwear shirts imports by the U.S. stood at 8.7 percent in June.

knitwear shirts

Exporters explained that since the U.S. market offers a level playing field, they were able to compete with other countries, but the recent appreciation of the rupee against the dollar will be a  hurdle going forward, reports the Business Standard. Vietnam stands second in the same category of exports, followed by Bangladesh.

 

August 17, 2017   No Comments