Category — Retail

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

Paypal Starts India Operations

After offering cross-border payments in India for a decade, global digital payments major PayPal announced the launch of its India operations.

PayPal Holdings, Inc., said, “Merchants offering PayPal will be able to process both local and global payments through PayPal, getting access to PayPal’s 218 million customers around the world and in India through a single integration.”

The Government of India’s recent push towards digital payments led PayPal to partner with government and state-owned banks on a number of initiatives, such as digital financial literacy programs and eTourist Visa (eTV), reports the Economic Times.

PayPal Logo

“India is transitioning away from our biggest competitor – cash – and our digital platform and technology has immense scope to enable this at scale. For us, the marathon has just begun,” Anupam Pahuja, Country Manager and Managing Director, PayPal India said.

India’s digital payments journey is on a high growth trajectory and we are proud to be a part of it. We are excited about our prospects in a market that is highly inspirational and aspirational,” Rohan Mahadevan, CEO PayPal Private Limited and senior vice president, General Manager, APAC said.

 

November 9, 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

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

iPhone X Scores Big in India

This is the first time that Apple‘s global launch of a new iPhone included a concurrent launch in India.  From taking a horse carriage procession (or baraat that’s seen at Indian weddings) to purchase the new iPhone X to waiting hours in line before retail stores can open, Apple’s most expensive iPhone had fans in India vying to buy it. In less than a week of its November 3 launch, the iPhone X was “out of stock” at online sites and offline stores.

Several Apple fans came and went empty-handed; some authorized resellers and corporate partners were also disappointed at the limited stock handed to them, reports the Economic Times Retail. Faisal Kawoosa, principal analyst, Telecom and ESDM, CyberMedia Research suggests that the situation for Apple will take time to settle down. “Although there are initial supply issues, the situation for Apple will gradually come to normal as they strengthen the supply chain. They need to do it fast,” he added.

iPhone X

Anshul Gupta, research director, Gartner India said, “Despite the high price of the iPhone X, it will remain a growth driver for iPhone sales and its delayed launch means some of the fourth quarter of 2017 demand will shift to 2018. The immediate availability of the iPhone in line with other global markets shows the growth opportunity and overall importance of the Indian market.”

 

November 7, 2017   No Comments