Category — Market Entry

Ballard to Supply Backup Power Systems to India’s Reliance Jio

Ballard Power Systems , based near Vancover, BC, received an initial 100 unit order for backup power systems from Reliance Jio Infocomm Limited, a subsidiary of Reliance Industries Limited India’s largest  corporation. These systems will be deployed in Jio’s 4G wireless telecom network.

“This is an important commercial milestone for our telecom backup power growth strategy in a major emerging market,” said Steve Karaffa, Ballard’s Chief Commercial Officer.

CNN Money reports that the purchase order follows successful completion of a 12-month trial by RJIL of fuel cell systems from various vendors, and Ballard’s ElectraGen™-ME methanol-fueled system was selected for use in backup power applications. RJIL is in the process of rolling out a new 4G telecom network, which requires the acquisition of hundreds of new base station towers.

According to the Groupe Speciale Mobile Association India is one of the fastest growing telecommunications markets, with more than 10 million new subscribers added each month.

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April 29, 2015   No Comments

Hershey Considers India “Key for Continued Growth”

Global confectionery major Hershey has seen a strong quarter of growth in India, and says it is committed to investing in this emerging market.

Mydigitalfc.com reports that Hershey India, a subsidiary of The Hershey Company, operates both its confectionery and beverage lines from regional sales offices in Mumbai, Delhi, Chennai and Kolkata. The organization’s salesforce of 500 people reach more than a million retail outlets through 1,500 distributors spread across India. The Hershey brands Sofit, Hershey’s Syrup, Jumpin, Soft, and Jolly Rancher are popular with consumers.

“The scale and potential of India is key for our continued growth around the world and Hershey is committed to investing in India,” says Praveen Jakate, managing director of Hershey India.

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April 29, 2015   No Comments

Online Grocery Market Grows in India

With incomes rising and Internet connections spreading across India’s urban centers, an online food retail channel is developing with a mix of  brick-and-mortar retailers (setting up e-commerce sites with offering home delivery) and with pure-play online grocers emerging. The latter category includes Bangalore-based BigBasket and Mumbai-based retailers LocalBanya and EkStop. All three have been part of the early development of the online grocery channel in India.

Brick and mortar grocers Reliance Fresh and Godrej’s Nature’s Basket have been offering free delivery of groceries and fresh vegetables and fruits to homes and offices within a limited radius of the location of their stores. Amazon India has started delivering foods and beverages too.

However, debates continue on the subject of the efficacy of e-commerce for food items with some analysts asserting that promotions and deals are a common tactic by manufacturers looking to build an online presence in India — a tactic which should only be used occasionally. Amnish Aggarwal, senior VP for research at stockbroker Prabhudas Lilladher, feels “If your premium consumers are going in for your online retailing where you are offering discounts, then it is detrimental for your brand value.”

Road infrastructure  is considered in delivery schedules, and many companies have bicyclists delivering orders. LocalBanya allows customers to enter three delivery addresses; while EkStop offers six, two-hour delivery time slots. BigBasket’s delivery routes are managed by GPS technology.

Himanshu Bajaj, principal at A.T. Kearney‘s consumer industries and retail practice in India, believes “major investments” can be expected over the next few years.

 

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March 17, 2015   No Comments

Zeelandia of Holland To Bake in India

The Dutch family-owned baking company Zeelandia, has entered into a joint venture with Fine Organics which has been Zeelandia’s distributor in India since 2001. Fine Zeelandia will be based in Mumbai and it will cater to customers throughout the country, as well as in Sri Lanka, Bangladesh and Nepal.

The company plans to  produce locally using local ingredients wherever possible. Within its first year of operation, Fine Zeelandia will also prepare a fully equipped production site for bread and patisserie mixes, Carlo release agents, Finagel cake gel and Paletta jellies.

According to Zeelandia CEO Roelof Krist, the joint venture fits seamlessly into Zeelandia’s strategy. “We want to strengthen our global position through local partnerships and local production. We’ve already established a permanent local presence in China, Brazil, Russia, South Africa and Turkey. India is a logical next step: it’s a huge growth market, especially for confectionery but increasingly for bread as well.”

Matthijs Spiering, Zeelandia’s international commercial manager said, “Because Indian consumers have become more internationally influenced, a number of Western-style bakery ingredients have become popular among Indian, including multi-cereal bread mixes, muffin mixes, fondant and special fruit fillings and glazes.”

Zeelandia Pastries

Zeelandia pastries
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March 17, 2015   No Comments

PepsiCo to Leverage e-Commerce in India

Economic Times reports that PepsiCo India is planning to break into retail by selling selected premium snacks and drinks exclusively through e-commerce platforms in India.

Vipul Prakash, VP for marketing at PepsiCo India, said, “We have a significant portfolio of high-end global brands which many Indian consumers are already familiar with. We are working out plans to make these brands available exclusively through e-commerce in India.” He also said that details of the e-commerce strategy, including which portals PepsiCo would tie up with, are expected to be finalized in the next couple of months. Brands to be offered online might include Lays Max chips which sell at a premium and high end versions of Tropicana juices.

PepsiCo India

PepsiCo India

The U.S. multinational’s move comes at a time when online shopping is growing exponentially in India. Online e-grocers too have reported a significant upswing in sales in recent months, prompting big FMCG players to raise their online presence.

A report released by Google and consulting firm Bain this month estimated that the Internet will influence $35 billion of FMCG sales in India by 2020 when there will be more than 250 million online shoppers in India.

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March 17, 2015   No Comments