Category — Market Entry

India’s Stock Market Regulator Announces Relaxed Listing Norms

With the aim of boosting India’s startup ecosystem, the Securities and Exchange Board of India, the  body that regulates Indian stock markets, has relaxed listing and fund raising norms for the startups.

According to India’s IT industry trade body Nasscom’s key findings of the India Start-up Report 2014, there are:

  • ~3100 startups present in India, 3rd largest base in the world. The India Expert assume that Nasscom refers to professionally funded startups, i.e. those which receive angel or venture funding.
  • 800+ startups are being set up annually
  • By 2020 there will be ~11,500 startups employing over 250,000 people
  • ~300 VC/ PE & ~225 angel investment deals worth over $ 2 billion
  • over 20 M&A’s worth ~ $1 billion inthe last 3 years

Despite the optimism of India’s technology startup scene, only 13% of stock market valuation in India is from the technology sector as compared to over 40% in the United States, according to software product thinktank, iSPIRT.

The changes envisaged by the Securities and Exchange Board of India include:

  • the creation of a separate institutional trading platform which will be linked to India’s  two existing stock exchanges
  • shorter lock-in periods for initial investors
  • simplified disclosure norms
  • reviesed IPO pricing rules
  • a minimum investment of just  $16,000 by retail investors.

“We are happy with the outcome” said Sharad Sharma, chairman of iSPIRT. These changes are expected to come into effect by the end of this year, reports Forbes.

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July 3, 2015   No Comments

Thailand’s Five Star Chicken to Invest $500 Million in India

Charoen Pokphand, a Thailand-based group that owns the Five Star Chicken quick-service chain of restaurants, will invest $500 million in its India division in an effort to double its annual revenue reports GlobalMeatNews. Sanjeev Pant the vice president of India operations explained that 30% of the 500 million will be funded by the company and the rest of it will be raised through banks loans.

Charoen Pokphand hopes to increase the Five Star Chicken restaurants’ current annual revenues of $14 million to $70 million with this investment.

Five Star Chicken

Five Star Chicken

The company is also in the process of doubling its poultry feed capacity to 300,000 tons a month in the next five years. They plan to attain this target by adding new factories in the states of West Bengal, Punjab, Maharashtra and Haryana.

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June 25, 2015   No Comments

India’s Emami Enters Rich Country CPG Market

Kolkata-based Emami Limited, a personal care and healthcare company, has acquired a 67% stake in Fravin Limited, an Australian organic cosmetics firm for an estimated $3.1 million.   (Aus $4million plus)

Fravin’s founder, Peter Francis, said “Emami’s plans are to build a $77 million (AUS $100 million) manufacturing business out of South Australia over the next decade through our company. It’s a strategic move by the Indian company, which has more than 260 products in its portfolio, to enter the premium organic care markets in India and overseas.”

Established in 1974 by two childhood friends R.S. Agarwal and R.S. Goenka who quit their accountant  jobs to start the company, the now diversified “fairness” product manufacturer Emami Group operates in more than 63 countries. Cosmetic products form one part of its business, which also includes making ball pen tips, edible oil, infrastructure and development, cement, biodiesel, and hospitals.

Founders R.S. Agarwal and R.S. Goenka

Founders R.S. Agarwal and R.S. Goenka

Emami’s investment deal will benefit Fravin – the Australian company will be able to expand its manufacturing capacity and access new export markets. Emami will benefit from the ‘green chemistry’ of the Australian firm, reports Organic Monitor.

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June 25, 2015   No Comments

H&M to Open its First Flagship Store in India

Swedish fashion retailer Hennes & Mauritz (H&M) said in a statement that it will open its first store in India this fall. The 25,000 square feet store will be located in the Select Citywalk mall in south Delhi‘s Saket area.

“This Fall, fashion will have a brand new address in India — from a world-class shopping destination to sustainable and quality fashion offerings at the best price — we are excited to present the complete H&M experience to our Indian customers,” Hennes and Mauritz Retail, India Country Manager Janne Einola said.

H & M Logo

The H&M Group has over 3,600 stores in 58 global markets and sees the potential to open 50 stores in India over the next few years.

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June 5, 2015   No Comments

Neogen Acquires Food Safety Company in India

Michigan-based Neogen Corporation has acquired Sterling Test House, a food testing laboratory located in Cochin in India’s southwest state of Kerala, and which will now act as a base for the company’s new operations in India. Terms of the deal were not disclosed.

Incorporated in 1990, Sterling’s business has grown to include virtually all of the food safety and water quality testing for major hotels and restaurants in its home region, as well as safety and quality analysis for the country’s expanding nutraceutical market, and growing food export businesses reports CNN Money.

Sterling Test House, Biochemical Analysis

Sterling Test House, Biochemical Analysis

“Sterling’s excellent reputation and 25-year history of providing exceptional service to the food and nutraceutical industries align perfectly with our goal of establishing a solid presence in India,” said Dr. Jason Lilly, Neogen’s vice president of corporate development. “India’s rapidly expanding middle class is increasingly demanding more, higher quality foods — which is an exact match with Neogen’s mission,” he added.

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June 3, 2015   No Comments