Category — Consumer Goods

iPhone Assembler to Expand Operations in India

With Apple‘s earnings in India doubling year-on-year, Taiwanese manufacturer Wistron, primary iPhone assembler in India, is scouting for 100 acres of land in Bangalore to expand its facilities.

Though Apple is currently a minor player in India, its potential is huge. CEO Tim Cook said on the earnings call in early November that there was much work to be done to fulfill this potential.

He said he’s confident the company can gain ground, but it will take work on many fronts.”It’s building stores. It’s building channels. It’s building markets. It’s building the developer ecosystem,” he said. “It’s having the right product lineup for the market. And I feel like we’re making good progress there and are gaining understanding of the market, but we still have a long way to go.”

Picture of PM Modi and Tim Cook

The India government’s Department of Industrial Policy & Promotion wrote to the firm saying it was “actively involved in resolving issues raised by Apple” and the various key departments in charge of vetting these concessions are “positively inclined to the proposal,” according to a document from an official to Apple that was reviewed by Bloomberg News.

November 12, 2017   No Comments

Walmart India Sales Exceed $630 Million

“This year, India was made a priority market for Walmart, which means we’re getting more resources, more talent. This will help in accelerating stuff, and investments in the back-end and the supply chain will happen,” Krish Iyer, president and CEO, Walmart India, told BusinessLine.

It was not always this way. Four years ago when Iyer took charge of Walmart India’s operations there were allegations of  bribery against some of its executives, and the future of its retail business seemed uncertain given the foreign direct investment rules governing the sector. Iyer empahsized the unique aspect of Walmart India in selling to small wholesale buyers in India  (rather than consumers) with its chain of cash-and-carry stores. Today each of Walmart’s India stores has turned profitable at the store level.

Walmart best price store in India

Walmart “Best Price” store in India

Walmart has 20 cash-and-carry  stores in India and is expected to launch 50 stores by 2021 at an overall investment of over $500 million. It’s launched its first fulfillment center in Mumbai, which will focus exclusively on consumer products and staples.

For the 15 months ending March 2016, Walmart India posted sales of over $630 million.Pinakiranjan Mishra, partner and sector leader (Consumer Products and Retail), EY, says, “If the foreign players can build scale the way they have abroad, the market opportunity is huge. The market is large enough for foreign and local players in cash and carry. I believe the key will be in execution and building supply chains, more than getting market share.”

 

November 8, 2017   No Comments

Belgian Beers Now Offered at India’s Pubs

Belgium‘s Chimay, one of only 11 “Trappist” beers in the world, brewed by monks within the walls of an abbey, with profits going to charity, will be available in India. Its launch in the Indian market coincides with the Belgian royal couple King Philippe and Queen Mathilde visit to India to mark 70 years of diplomatic relations between the two countries.

Another Belgian brand, Delirium, with its famous pink elephant logo, is also entering the Indian market. Both Chimay and Delirium will be imported, distributed and marketed in India by New Delhi-based Hema Connoisseur Collections Pvt. Ltd., and will retail at $8.50 per a pint bottle. Initially, the two Belgian beers will be available across selected eight retail outlets in New Delhi, six top hotels, a few restaurants and 18 pubs, including 12 units of Beer Café. “Within a few weeks, we’ll have a similar presence in Mumbai and Pune. There is no immediate plan to expand further,” said Amit Agarwal, chief executive officer, Hema Connoisseur Collections.

Trappist Beers

Beer pubs are upbeat, reports LiveMint. “Chimay is one of the most prestigious Trappist beers in the world. At Beer Café, these are the most premium beers on the menu. We have already witnessed a sense of exuberance among beer aficionados,” said Rahul Singh, founder and chief executive of Beer Café.

 

November 8, 2017   No Comments

60 Global Food Brands to Set Up Outlets in India

More than 60 global food and beverage brands, including  U.S.-based Planet Hollywood and pizza chain Little Caesar’s, Singapore-based Sarpino’s Pizzeria, Finland’s Hesburger, and Dubai-based Ice Cream Lab are planning to enter India, investing an estimated $1 billion and opening as many as 5,000 outlets over the next five years.

These brands are seeking local partners to take advantage of the $60 billion food services market in India, according to FranGlobal, the overseas arm of Franchise India Holdings Ltd.

“Planet Hollywood and the connection with Bollywood is a marriage made in heaven. The symmetry and compatibility between the two is very strong. We are delighted to have the opportunity to introduce our brands in this huge, exciting and dynamic marketplace,” Alex Garland, managing director for Europe, Middle East and Asia at Planet Hollywood, said.

A Burger

LiveMint reports that according to a joint report published by the National Restaurants Association of India and consulting firm Technopak Advisors the food services market in India is projected to reach $74 billion (Rs4.98 trillion) by 2021. The market is growing at an annual average rate of 10%.

November 7, 2017   No Comments

Indian and Foreign Companies commit to $11 billion in Food Sector

Speaking at World Food India 2017 in New Delhi,  India’s Finance Minister Arun Jaitley said, “Food processing is going to be one of the principal industries of India in the future. The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference.” Jaitley holds one of the most powerful posts in Prime Minister Modi’s cabinet and is considered part of his trusted inner circle.

Food processing

Food processing

The three-day food fair ended with 50 memoranda of understanding  signed and an investment commitment of $19 billion of which $11.25 billion will be from the private sector.  For example, PepsiCo signed an MoU worth $2 billion  to set up a food and beverage plant, Coca Cola will invest $1.7 billion in juice bottling and fruit processing plants and equipment, while Indian companies ITC and Patanjali committed an investment of  $1.54 billion each in this sector. Amazon signed an MoU in the food retail sector.

The Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, reports India Retailing. The sector has been growing at the rate of 12 percent annually.

Food Processing Minister Harsimrat Kaur Badal said, “100 percent foreign direct investment is   allowed in this sector through the “automatic” route and we have seen inflows increase 40 percent over the last year.” The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she added.

 

 

November 7, 2017   No Comments