Category — Sourcing

Ford becomes India’s largest Car Exporter

Ford, Nissan, and Volkswagen ship more of their India-manufactured cars to overseas markets than what they sell within India.

Michigan-based Ford has two manufacturing units in the country: at Chennai in the southern state of Tamil Nadu and at Sanand in India’s western state of Gujarat. It has overtaken Korea’s Hyundai in Fiscal Year 2018 to become the largest exporter of cars from India.

In the first nine months of the current financial year (from April 2017 – March 2018) Ford shipped over 134,000 units,  12 percent  more than the previous year.

For the same period, German auto maker Volkswagen exported more than double the number of units it sold in India, while Japanese car maker Nissan shipped more than 46,000 units to export destinations.

Company # Cars Sold in India

(Apr – Dec FY ’18)

# Cars Exported

(Apr – Dec FY ’18)

Ford 62,554 134,575
Nissan 38,928    46,502
Volkswagen 34,979    71,667
GM  Nil    60,707

General Motors decided to stop local sales of its cars in May last year and announced plans to focus exclusively on the export market. The company has shipped over 60,000 cars from India for the same period, and is now the fifth-biggest exporter of cars from the country.

Ford Ecosport

February 12, 2018   No Comments

GM to Ramp Up Component and Passenger Vehicle Shipments from India

Detroit, Michigan-based General Motors which stopped manufacturing passenger vehicles for sale in India, is looking to ramp up component exports from India even as it continues to add new global markets for vehicle shipments from the country.

The company currently exports body panels and engines to Vietnam and Cambodia, and recently started exporting the Beat Notchback to Costa Rica. “Our exports have tripled [increased three times] over the past year and we are very pleased with the acceptance of our products in the export markets,” an official from the company said. In India, GM manufactures vehicles and components at its Talegoaon plant in the western state of Maharashtra.

In 2017, GM ranked 5th in India in terms of passenger vehicle exports. Its hatchback Beat was the highest exported passenger vehicle from India.

Chevrolet stering wheel

January 30, 2018   No Comments

Starbucks Expands Footprint in India

With over 100 stores spread across the metros of Mumbai, Pune, Hyderabad, Chennai, Delhi, and Bangalore over the past five years, Starbucks India, a 50:50 joint venture between India’s Tata Global Beverages and Seattle-based Starbucks Corporation, is planning to add 24 new stores this year. CEO Sumitro Ghosh said, “After we enter Kolkata, [early 2018] we are looking at tier II cities to open new stores and are in the process of evaluating them.”

When asked how much of the coffee served in the stores is sourced from India, Ghosh said, “Roughly, Espresso accounts for over 60 percent of our beverages. Every Americano, Latte, Cappuccino and all of our Frappuccinos are based on the Espresso beverage, which is made from Indian coffee beans sourced from Tata Coffee plantations in Coorg. The Alphonso Frappuccino, introduced in India in 2014, is now offered in Starbucks markets outside India.

Starbucks Coffee signboard

The India Estate blend that is sold in whole bean form over the counter in the company stores in India is also being sold online in the U.S. and other countries. Tata Nullore Estate’s coffee became the first Indian coffee to be roasted and sold at the company’s home city of Seattle in 2016, which was later rolled out across other Starbucks stores in the U.S. A second Indian estate-specific coffee has been selected to be sold in the U.S., and will soon be announced,” said Ghosh.

Coffee is becoming more of a fashion statement among the young and upwardly mobile, and the Chain Coffee Cafe segment has been growing in India with both Indian and International brands joining it: Starbucks, Dunkin Donuts, Cafe Coffee Day, Barista, Costa Coffee, and The Coffee Bean and Tea Leaf. The chain cafe market is estimated to be 36% of the total organized market by 2020, and is projected to grow at a CAGR of 20%.

January 25, 2018   No Comments

Startups in India’s Defense Sector Forge Ahead

With the Government of India permitting 100 percent foreign direct investment in India’s defense industry, many startups in India’s private sector have started to design technologies that can be used in manufacturing defense equipment.

Bangalore-based Aadyah Aerospace builds electro-mechanical actuators, control actuation systems and electro-optics systems for missiles and launch vehicles.

Since military equipment can’t always be tested on the field, CM Envirosystems, another Bangalore-based startup designs and manufactures environmental test chambers which simulate real environmental conditions. The company provided these environmental test systems for Agni, India’s ballistic missiles program.

A smartphone with Start Up displayed on it

Samhams Technologies, ideaForge and Omnipresent Robotics are creating better quality drones that can be used in cloudy and foggy environs.

Entrepreneur says that biotech engineer Leo Mavely, founder of Axio realized the importance of the untapped healthcare market in the defense sector. His product Axiostat is a sterile, single-use haemostatic dressing intended to be used for temporary control of moderate to severe bleeding of wounds. Malvey added that the company has supplied these dressings to one hundred battalions in India, and have also shipped around 350,000 units worldwide.

Bangalore-based Tonbo Imaging makes digital imaging systems for equipment such as guns, unmanned aerial vehicles, and battle tanks. It earns nearly 80% of its revenues from the Indian defense services. This startup specializes in products such as advanced night-vision cameras, fire control systems, and advanced weaponry through “nature-inspired technology.”

December 29, 2017   No Comments

Hershey Test Markets India’s Soya Brand ‘Sofit’ in U.S.

Pennsylvania-based Hershey acquired the Sofit brand after buying out India’s Godrej Group from its joint venture, Godrej Hershey Ltd., in 2012. And now, Hershey plans to introduce Sofit, (a brand synonymous with soya milk, since it was first introduced in the year 2004 by Godrej Hershey Ltd.) in the U.S. market as a seed-based protein bar in the snacking category.

Praveen Jakate, chairman & managing director, Hershey India, said, “We want take Sofit to the U.S. to make it bigger. We want to capitalize on the legacy of the Indian brand since soya can be a platform to grow and do things, as it is a source of protein.”

A tetrapack of Sofit soya milk

The company said India has emerged as its fastest growing market, clocking net sales growth of 16 percent, and that it is planning to invest $50 million over five years in the country, reports Business Line. Steven Clay Schiller, president international, Hershey, said, “We want to make India an export hub and want to import and export our products into India. We should be able to sell without having trade barriers which will make it easy to do business.”

December 15, 2017   No Comments