HSBC: India to be a $7 Trillion Economy in 2028

British financial services giant  HSBC said India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector.

Thire brokerage’s estimates show that India will be a $7 trillion economy in 2028, as compared to less than $6 trillion and $5 trillion for Germany and Japan, respectively. Currently, India is at the fifth spot in global rankings with a GDP of about $2.3 trillion (fiscal 17), reports BusinessLine.

Rs. 50 currency notes

Other takeaways from the report:

  • Demographics and macro stability were key strengths for the country
  • India needs to create an ecosystem of continuous change
  • An avenue of job creation can be the social sector
  • India will continue to be a services oriented economy but it needs to pay extra attention on manufacturing and farm sectors as well

“Apart from services, other hallmarks of the India story over the next decade will be higher investment and capital goods flows as its focus on manufacturing increases; Indian consumers forcing foreign brands to turn ‘glocal’; and a two-way human capital footprint that will see many skilled people traveling overseas. It (India) needs to broaden its specialization (beyond just IT in business and cricket in sports) if it wants to run harder and fly higher,” the report added.

September 22, 2017   No Comments

New Jersey based ATCS Sets Up Innovation Lab in India

New Jersey-based IT solutions company Advanced Technology Consulting Service (ATCS) expanded its operations in India by recruiting new staff and setting up its first Innovation Lab (I-Lab) in Jaipur, in the western state of Rajasthan. The company also opened a new office in Bangalore.

“The I-Lab not only serves as a functional space for approaching ideas and concepts in an alternative setting but also embeds a spirit in our team that ATCS is expected to think differently, creating solutions beyond one’s peripheral views,” said Jason Castellani, partner at ATCS.

The company provides strategic guidance to and implements software solutions for several Fortune 500 companies, and has offices in China, Germany and Canada, reports NDTV Profit.

Manish Krishnan, Global CEO, ATCS, said, “For our customers, innovation is a big drive. Having such a lab in our India office helps us in delivering more inventive ideas to our clients.”

ATCS Press Conference in Jaipur

ATCS Press Conference in Jaipur

July 13, 2017   No Comments

BMW Thrives in India

Munich-based BMW Group India posted a strong double digit growth in 2016 after two years of decline, and has carried the momentum into this year by logging 8% growth till May, confident that this figure will continue to rise in the coming months; it is currently the fastest growing luxury car brand.
BMW 5 Series

The company announced a fresh investment of $20 million. Vikram Pawah, MD and CEO of BMW India said that the firm will focus on profitability, bring in new technology, products, and enhance dealer network and customer engagement. He added that plans to locally manufacture the new 5 Series, will take the number of models made locally to 8, which is almost half its portfolio, reports the Economic Times.

“We are  sitting at less than 2% of overall passenger vehicle market, it can grow to 5-10% in the coming years and BMW would like to drive that growth,” said Pawah.

June 19, 2017   No Comments

ATM Maker Diebold Says India is a High Growth Market

With a presence in over 4,000 cities and towns, Ohio-based Diebold has operated in India for more than 25 years and is well versed in the country’s banking and financial narrative. The company recently completed integration after acquiring German corporation Nixdorf.

In an interview with CXO Today, Jaivinder Singh Gill, managing director – South Asia and vice president Operations – Asia Pacific, Diebold Nixdorf, discussed the future of the banking and e-Point of Sales (PoS) market in India.

Lightly edited excerpts from the interview:

The current scenario of banking

Gill: The number of banking outlets in the villages went up from 67,694 in March 2010 to 586,307 in March 2016 after India’s central bank permitted the appointment of Banking Correspondents – entities engaged by a bank to provide banking services in geographical territories where banks are under represented. A banking correspondent works as an agent of the bank and substitutes for the brick and mortar branch of the bank. The number of urban locations covered through such Banking Correspondents also surged from 447 in March 2010 to 102,552 in March 2016.

On the changing consumer patterns in Indian banking

Gill: Since currency demonitization in November 2016, ATM transactions have increased by 26% and the value of ATM transactions is up by 83%. Customer transaction behavior is now a mix of both ATM and PoS transactions. We see the increasing usage of mobile phones as a banking channel and the use of social media by millennials to interact with banks.

On the implications of India moving towards a digital economy

Gill: The PoS market is expanding fast in India with digital adoption on the upswing. Some data facts highlight that there has been a 67% growth in the absolute number of terminals across the country. There has been a 64% growth in the number of P0S transactions in India.

The PoS market is directly linked to the growth in the retail industry which has a very high growth potential in India. This high growth will be see in Tier 2 and 3 cities/ towns due to rapid urbanization, growing aspiration levels, and availability of credit.

Augmented Reality and Virtual Reality are two key levers which retailers need to focus on to drive footfalls. Adopting an Omni-channel approach is another major criterion on which the retailers need to shape their strategy on.

On how products like PoS or ATM machines will support the economy

Gill: The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 percent of the country’s GDP and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space and the Indian retail market is expected to nearly double to $1 trillion by 2020, driven by income growth, urbanization and attitudinal shifts.

The e-POS solution delivers a seamless, Omni-channel retail experience to enhance competitiveness. It can rapidly roll out pre-configured templates to support diversification into different retail sectors and accelerate international expansion with centralized store-lifecycle management. The technical benefits are also immense: it enables a reliable, secure and easily manageable platform for retail asset management based on trusted industry standards. It also comes with comprehensive data exchange options and offers support for centralized and client/server configuration.

On the roadmap for the India market in the next one year

Gill: We expect high growth in cash recycling with almost 30% y-o-y market growth expected in 2017/18 per our internal estimates. Branch redesign and teller automation is also a focus area for banks to reduce their operational costs. Growth is also expected in cash system logical security solutions, multi-vendor software solutions, services, and e-POS growth in Tier 2/ 3 market segments. The ATM replacement market with banks opting for technology refresh also has immense potential. This growth market is predicted to reach up to 52% of the overall procurement by 2021.

Mobile and Stationary PoS

June 14, 2017   No Comments

Metro Cash & Carry is Well Established in India

Headquartered in Dusseldorf, Germany, Metro Cash and Carry launched its business-to-business wholesale concept in India in 2003. The company is a one-stop solution for business customers such as mom and pop grocery stores, small retailers, hotels, restaurants and caterers, and offices.

Sanjay Kumar, journalist for IndiaRetailing, spoke to managing director and CEO of Metro Cash & Carry India, Arvind Mediratta regarding many aspects of the company’s functions in India.

Metro Cash and Carry MD and CEO Arvind Mediratta

Arvind Mediratta

Excerpts from the interview:

 On the opportunities and challenges of doing business in India

Mediratta: The Indian market is extensive and diverse. This provides us with both opportunities and challenges. In India, what works in the north will not work in the south because of the penetration of regional and local brands. We have to localize according to the market.

On expanding the company’s footprint

Mediratta: Since the organized wholesale market in India is growing at an even higher rate than modern retail, there is no dearth of opportunities in the country. Recently, we revamped our India operations and split it into North-East and South-West, to sharpen our regional focus. We will continue with our focus on these markets while also keeping an eye on emerging markets in Tier II and III cities. A cluster approach to markets is the best way to grow the business.

On customizing solutions and services to serve the diverse needs of specific regions

Mediratta: We have a simple strategy to suit diverse needs – we listen to our customers. Goods are sourced locally and are tailor-made to meet the specific demands of the region. We are constantly engaged in customer interaction to ensure that we understand the pulse of the market and provide products and services accordingly.

On the potential for growth of big box retailers like Metro in India

Mediratta: India has been growing at the fastest pace in its economic history. The growth potential has increased manifold. The Government’s decision to allow 100 per cent FDI in food retail is a welcome step. The infrastructure and supply chain is improving and the Internet has demolished the aspiration lag between big and small cities. The Indian retail and wholesale market offers great potential and bright prospects for international and domestic players.

On Metro’s retail ecosystem

Mediratta: Metro Cash & Carry is the country’s first HACCP-certified wholesale retailer. We ensure that all our 23 stores’ in-store activities, as also procedures involving sourcing, supply chain, stocking, and point of sale comply with the highest standards of cleanliness and hygiene. All our suppliers are given systematic training on meeting customer requirements in terms of food quality, safety and traceability.

Fair prices and guaranteed and transparent payments are credited directly into a farmer’s account in less than a day. Metro regularly conducts Trader Support and Partnership programs. We share best practices with small grocers in planogramming, assortment planning, store layout and inventory planning to improve their profitability.

On the next big change that is coming in retail

Mediratta: Whether online or offline, buying and selling cannot afford to remain mono-channel any longer. Only those players can envision a long and rewarding future who are able to fold into the Omnichannel approach.

I foresee a huge proliferation in the number of categories and sub-categories with customers becoming more and more experimental.
a) Health & Wellness: Organic food, health supplements, fitness equipment, apparel and personal care products
b) Experience: Media, travel, entertainment, home, gaming, sports and luxury categories
c) Staying Connected: Highly integrated smart homes, smart kitchens, telecom, transportation and IT products
d) A Fair World: Socially, environmentally, and ethically fair products such as cage-free eggs and vegan products

On the difference between 0perations in India vis-a-vis the rest of the world

Mediratta: The Indian market is very different from the other countries where Metro operates in. To compete in a fiercely competitive market with a high real estate cost and a Maximum Retail Price regime requires one to be very nimble and cost efficient. We learned our lessons in the Indian market very early and started adapting ourselves to suit the customer needs.

June 10, 2017   No Comments