Category — Market Entry
Plandai Biotechnology Inc., based in Utah, has concluded a deal with Bangalore-based Bal Pharma for the distribution of its ingredients in India. Bal Pharma, which manufactures and exports pharmaceutical finished drugs and distributes nutraceutical constituents, will use Plandai’s Phytofare line of plant extracts in its own products and will also market them as active ingredients in India says Nutraingredients-usa,com.
“Bal Pharma should quickly be able to generate substantial market penetration for Plandai. Our agreement with such a highly-regarded Indian company further validates the fifteen years of research that has gone into bringing Phytofare to market and the solid science behind our phyto-available products,” said Callum Cottrell-Duffield vice president for sales for Plandai.
November 27, 2015 No Comments
AarhusKarlshamn (AAK) the Swedish vegetable oils and fats provider, has acquired 51% of the shares of Kamani Oil Industries Pvt. Ltd., a specialty and semi-specialty oils and fats companies in India. The remaining 49% of the shares will continue to be owned by the Chawla family and Prakash Chawla will continue as chief executive officer. Additionally there is a provision for a put/call option under which AAK could acquire the remaining 49% of the company within the next three-seven years.
Kamani Oil posted revenues of approximately $119 million last year, with an annual volume of 26,417,205 gallons or about 100,000 tons.
The AAK Group said that the acquisition is an integral part of AAK’s company program AAKtion and that it will strengthen AAK’s presence in a fast-growing economy, reports Bloomberg Business.
November 27, 2015 No Comments
Goodbox, a start-up based in Bangalore, raised a $2.5 million Series A from Nexus Venture Partners. This company allows small and medium businesses such as supermarkets, restaurants, and service providers like movers, salons, and laundry chains to use its partner app for their ecommerce requirements. Goodbox charges each vendor $16 annually, and a 1.99 percent transaction fee for each payment. Chief executive officer Abey Zachariah explained, “We see ourselves as enablers for offline retailers that don’t have an online presence, so they can build an app presence without burning a hole their pocket.”
Consumers use the main Goodbox app to find nearby businesses and make cash-on-delivery or debit and credit card payments. Additionally the app has a chat feature that enables customers to call businesses and ask questions about products or make requests like extra toppings on food.
“There’s no learning curve. It’s asynchronous. We can allow for businesses to customize their chats, such as adding a checklist or menu,” says Mayank Bidawatka, co-founder of the company.
November 25, 2015 No Comments
San Diego-based Qualcomm is planning to invest $150M in startups in India. This investment will be directed by Qualcomm Ventures. The company said that this move is part of supporting Prime Minister Modi’s vision “to transform India into a digitally empowered society and knowledge economy.”
Qualcomm already has investments in more than 20 Indian companies, which it has made since 2007 reports socaltech.com.
November 10, 2015 No Comments
India is the world’s biggest untapped shopping market says the Wall Street Journal, as it traces one online order and its delivery on a 1200 mile journey from Surat in the western state of Gujarat where the garment was manufactured to Madurai in the eastern state of Chennai where the customer was located. The journey—about the same distance as New York to Kansas—involved at least 30 people, two overnight truck journeys and a long-haul flight!
Ms. Rajamansingh orders a $3.06 sari on an e-commerce site Shopclues.com where around 80,000 products are ordered daily. However, that figure can shoot up to 240,000 on Sunday sale days. Shopclues receives 70% of its orders from outside India’s metros (such as New Delhi and Mumbai) mainly from Tier II and III smaller cities and towns.
Fabdeal, the manufacturer of the sari, ships the parcel from Surat to a warehouse in Bhiwandi on the outskirts of Mumbai. Transporting by road has its challenges of negotiating poorly maintained roads in various parts of the country, coupled with the flooding caused by rain in the monsoon seasons.
Distance: 162.4 miles
Cost: $ 0.11
Time: 8:30 hours (compared to about two-and-a-half hours for a similar distance drive from Washington, D.C. to Philadelphia.)
From the warehouse in Bhiwandi the packet is transported to the airport in Mumbai.
Distance: 41 miles
Time: 4:17 hours
Most online orders travel on commercial flights and delays are common due to space constraints in the hold, as also because of packets being rejected if the airline staff suspect prohibited items such as batteries in the package. For e-commerce companies, the difference between profit and loss is often whether a package travels by air or by road.
Ms. Rajamansingh’s sari then flew a day late from Mumbai Airport to Chennai Airport since it missed catching the earlier flight.
Distance: 643 miles
Cost: $0.33 (half the total shipping cost)
Time: 4:47 hours
The package arrived late in the evening in Chennai and it missed the single, daily truck that plies between Chennai and cities farther south such as Madurai.
Distance: 292.6 miles
Time: 10:40 hours
The last lap from the city of Madurai to Ms. Rajamanshingh’s door was completed by a man on a motorcycle
Time: 20 minutes
Distance: 1159.5 miles
Delivery Cost: $0.70
Modes of transport: Three
Time in transit: 32 hours 25 minutes
Total time: Two days, 19 hours, 6 minutes
Fabdeal, the company featured in this story is one of many companies that has benefited from the boom in online sales. Before it began its e-commerce business in 2012, sales grew 10%-15% a year, now they are growing by 50% a year.
November 10, 2015 No Comments