Category — Market Entry
To bolster the renewed interest among American businessmen, the Indian government has constituted an inter-ministerial committee to ensure that investments from the U.S. do not run into roadblocks. Members of the committee include officials from the finance, environment, power, transportation, defense, civil aviation, telecom, health and external affairs ministries, and it is headed by Amitabh Kant, the secretary in the Department of Industrial Policy and Promotion (DIPP). In India, a Secretary is a senior career bureaucrat (not a member of the cabinet).
According to the Business Standard, “The committee will encourage practices that promote investment in manufacturing, with a special emphasis on green, advanced and smart technologies, by U.S. companies in India. This is to increase competitiveness and make Indian manufacturing a significant player in the global supply chain.”
The US-India Business Council had earlier said it had identified Indian sectors where over $41 billion of investments could flow over two to three years.
December 16, 2014 No Comments
FoodNavigator.com reports that food and drink manufacturers looking to increase profits and supply emerging markets would do well to consider India to set up their business to serve local, regional, and even global markets,
The cost of reliable labor in India is two-thirds less than that of China, according to Roberto Ferranti, principal of portfolio operations, at private equity firm Baird Capital. “Not only is a significant portion of India’s workforce university-educated and highly skilled, the country also has the advantage of the English language – an essential tool in the global economy,” he said. India’s government is aware that its red tape bureaucracy is off-putting, and is working to amend rules to help this sector establish in India.
Anuj Chande, partner and head of the South Asia group at the financial advisor Grant Thornton said, “Food manufacturing is seen as a priority by the Indian government and they are very much keen to see foreign companies going there,” As an example of the positive change, Chande cited that in the past foreign companies could not repatriate their profits. This restriction has now been lifted, he added.
December 14, 2014 No Comments
Zip-Pak revealed it had picked up two customers who are major consumer packaged goods users in India. A division of Illinois Tool Works, Zip-Pak manufactures resealable products for packaging.
The company is seeing organic growth of 10-20% in emerging markets, as compared to 3-5% in the EU, and a director of the firm told FoodProductiondaily.com that because of this trend, “we are putting our sales and marketing efforts, infrastructure and money into the emerging markets.”
December 13, 2014 No Comments
Carlyle Group LP, the Washington DC-based global alternative asset manager said that it had bought a majority stake in India’s Newgen KnowledgeWorks, a provider of publishing and technical services, for $32.8 million.
Carlyle acquired a 54.8 percent stake in the Chennai-based company through First Carlyle Ventures III, an investment fund advised by the Carlyle Group. Carlyle, which manages $203 billion globally, bought shares from Franklin Templeton Private Equity, Aureos South Asia Fund and ePlanet Capital, it said in a statement.
Newgen KnowledgeWorks caters to companies in the United States, UK and Europe. (Carlyle had earlier invested in Newgen in 2004 and exited in 2011.)
December 13, 2014 No Comments
Apple, the Cupertino, California-based electronics maker plans 500 ‘iOS’ stores in India, in its first major push that will include moving into smaller towns and cities. The company has been in the country since 2011, but its phones have not gained as much popularity as its Korean rival Samsung that dominates the Indian phone market. The company sold one million phones in India in the year ending September 2014, and expects the volume to triple this year.
The Economic Times reported that Apple has “tentatively approved” the expansion proposal and will give a final go-ahead very soon, defining all the parameters and phases of expansion. “These new stores will be smaller in size and could range from 300-600 sq ft against the over 2,000 sq ft size of existing stores in bigger cities.” A franchise model is likely to be adopted and could be spearheaded by Redington, one of its distributors in India. Apple is also expected to increase spending for direct advertising in India, apart from publicity undertaken by its distributors.
December 12, 2014 No Comments