Xiaomi to open its R&D and design facility

XiaomiXiaomi of Beijing China has identified Indian market as a potential place to grow its business. The company is now ready with a new strategy to set up an R&D center in India focused on local users, designing and customizing the devices according to them.

Hugo Barra, Vice President of the company said that Xiaomi had some issues and concerns in relation to the production of smartphones for Indian market because antenna calibrations and hardware are quite distinctive for the Indian market. So the stocks of other countries like Taiwan or China might not be redirected to India. Indian market is a potential and heterogeneous market with different requirements from network perspective.

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September 18, 2014   No Comments

Logistics in India costs less than in China

According to Economist article, logistics in India costs less than in China. Here are two examples that shows China as a mighty trading power, first is Yangshan which is in outskirts of Shanghai, is the world’s busiest container port and second is Pudong airport which is world’s third-biggest handler of air cargo. Also, there are 62000 miles of expressways  and comparable length of railways which stretches across the country. After all this infrastructure one might think china to have world class logistics industry. It does not.

Logistics spending in India is 13-14% of its GDP, whereas it is roughly around 18% for China. Li Keqiang, the prime minister, recently echoed industry’s complaints that sending goods from Shanghai to Beijing can cost more than sending them to America.

Logistics covers transportation, warehousing and the management of goods. Its Chinese translation, wu liu, literally means “the flow of things”. But that flow within the country is costly and cumbersome. Much of the investment in infrastructure has gone to lubricate exports. Now, as China’s government shifts its focus to consumption at home it is finding that the domestic logistics industry is woefully inefficient.

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September 10, 2014   No Comments

German Retailer Metro to Expand by 210 Percent in India

Europe’s fourth-biggest retailer, Metro AG, said it wants India to become one of its “focus expansion countries”, alongside Russia, China and Turkey. “We have seen continuous like-for-like growth recently in India. Now we decide to inject extra momentum into our expansion course there,” Metro  CEO Olaf Koch confirmed.

The company is planning to have 50 wholesale stores in the country by 2020, up from 16 now. Metro has been active in India with its cash-and-carry business since 2003 and is one of the few foreign retailers operating in the country.  Besides stores in major cities such as Delhi, Bangalore, Mumbai and Kolkatta, the company has chosen a regional expansion to Tier 2 cities such as Indore, Jaipur and Vijaywada.  It has also built up a geographic focus in one state, Punjab, with stores in Amritsar, Chandigarh, Jalandhar and Ludhiana.

In 2012, the Indian government gave foreign supermarket chains the green light to enter its $500 billion retail sector. Full foreign ownership of supermarkets that sell directly to consumers is restricted. Metro sells goods to small shopkeepers, which dominate India retail market.

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May 5, 2014   No Comments

India: Most Attractive Investment Destination

India has overtaken China as the most attractive investment destination, according to Ernst & Young (EY), with the sharp depreciation in the rupee and opening up of new sectors to foreign players boosting the South Asian nation’s allure. This according to report published on CNBC. Companies are most likely to invest in India, followed by Brazil (2), China (3), Canada (4) and the United States (5), EY’s ninth bi-annual Capital Confidence Barometer – a survey of 1,600 senior executives across more than 70 countries – showed. Other nations in the top 10 are South Africa (6), Vietnam (7), Myanmar (8), Mexico (9) and Indonesia (10).

Sectors with the highest level of possible deals in India include Automotive, Technology, Life Sciences and Consumer Products.

The survey reported that 38 percent of the respondents feel that Merger and Acquisition  volumes in India are expected to improve over the next 12 months, while 30 percent believe that these will remain stable. “The investor outlook for India remains positive, despite the challenges the country’s economy has faced in the recent past. At the same time, the improved condition of the world economy has helped increase confidence amongst deal makers, prompting them to take a bolder stance toward executing transactions,” said Amit Khandelwal, National Leader & Partner — Transaction Advisory Services, EY. “After two years, European countries (Britain and Germany) have made a comeback on the potential investment destinations list for Indian companies,” the report said. In August, the Indian government announced relaxation in foreing investor  norms in many sectors, including multi-brand retail and telecom.

 

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December 11, 2013   No Comments

GDP: Comparing Countries Over Time

The rise of Eastern economies is more properly called the “return” of these erstwhile economic powerhouses, especially China and India.

(Note that Angus Maddison did not seem to value the pre-Columbian nations of the Americas at all in his analysis, so the numbers are perhaps a bit skewed).

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June 6, 2013   No Comments