60 Global Food Brands to Set Up Outlets in India

More than 60 global food and beverage brands, including  U.S.-based Planet Hollywood and pizza chain Little Caesar’s, Singapore-based Sarpino’s Pizzeria, Finland’s Hesburger, and Dubai-based Ice Cream Lab are planning to enter India, investing an estimated $1 billion and opening as many as 5,000 outlets over the next five years.

These brands are seeking local partners to take advantage of the $60 billion food services market in India, according to FranGlobal, the overseas arm of Franchise India Holdings Ltd.

“Planet Hollywood and the connection with Bollywood is a marriage made in heaven. The symmetry and compatibility between the two is very strong. We are delighted to have the opportunity to introduce our brands in this huge, exciting and dynamic marketplace,” Alex Garland, managing director for Europe, Middle East and Asia at Planet Hollywood, said.

A Burger

LiveMint reports that according to a joint report published by the National Restaurants Association of India and consulting firm Technopak Advisors the food services market in India is projected to reach $74 billion (Rs4.98 trillion) by 2021. The market is growing at an annual average rate of 10%.

November 7, 2017   No Comments

India Overtakes U.S. to Become 2nd Largest Smartphone Market

According to Singapore-based research firm Canalys, with more than 40 million smartphones shipped to India in the third quarter of 2017, India surpassed the United States to become the second-largest smartphone market. Shipments in Q3 grew 23 percent year-over-year in India, putting it in second place right behind China.

Samsung and Xiaomi accounted for nearly 50 percent of the market in Q3, shipping 9.4 million and 9.2 million units respectively, with Vivo, Oppo and Lenovo rounding out the top five places, reports ZD Net.

Samsung Smartphone

Ishan Dutt, research analyst at Canalys noted that there are close to 100 mobile device brands sold in India, and added that growth in India will continue, attributing it mainly to low smartphone penetration and the explosion of LTE. Analyst Rushabh Doshi said, “We predict Xiaomi’s continued go-to-market innovations will allow it to overtake Samsung within a couple of quarters.”

 

October 31, 2017   No Comments

India’s High-Yield Bonds Fuel Overseas Investor Interest

With investor limits for India’s high return sovereign debt almost used up, overseas investors are looking to buy state notes. U.K. headquartered Aberdeen Standard Investments started buying the securities about three months ago and the investment now accounts for about one-fifth of its $312 million Indian bond fund.

Bloomberg Quint says: The highest yields among major Asian emerging markets have made Indian government debt a favorite with overseas investors, who have pumped about $20 billion into rupee securities this year. State bonds, which offer an extra 60-70 basis points of yield over the sovereigns, trade at very similar levels despite differences between the local economies. That’s because the Reserve Bank of India has a zero percent risk rating on the notes, meaning domestic investors treat the unrated securities like federal debt.

A case of dollar bills

Aberdeen’s Lin Jing Leong, a fixed-income investment manager in Singapore said, “We were one of the early asset managers to get into Indian state bonds. We’re definitely seeing others try and get on board.”

October 24, 2017   No Comments

U.S. Invests the Most in India’s Startups

According to New York-based CB Insights, U.S.-based investors are the most active foreign participants in India’s start-up ecosystem over the past five years, making over 800 equity deals during the period.

In the list of top five foreign investors in India’s technology ecosystem, U.K., with 1% of deals stood at 5th place; Japan at 4th with 2% of deals; Hong Kong at 3rd with 3% of deals; Singapore at 2nd with 5% of deals; while the U.S. topped with four times the number of deals than investors from Singapore.

Planning in a startup

Business Standard reports: Of the U.S.-based investors, New York-based Tiger Global has been the most active, backing some of India’s largest start-ups, including Flipkart, Ola, and ShopClues, while also making numerous other investments in smaller companies. Hong Kong-based Saif Partners, has backed firms such as Paytm and Urban Ladder. California’s Accel Partners, which has an India unit, made its largest investment in Flipkart through its overseas unit rather than the local one.

Both Tiger Global and Japan-based Softbank have pumped billions of dollars in India’s startup ecosystem in the past few years.

August 31, 2017   No Comments

Multinationals Bullish on Warehousing in India

Due to growth in both the consumer sector and e-commerce in India, overseas investors and real estate players are increasingly investing in warehousing and logistics.

Key players such as Singapore’s Ascendas-Singbridge, Assetz Property Group, Ohio-based Logos Realty, Canada Pension Plan Investment Board and the Everstone Group, among others, have made major investments in this segment.

Some quotes from senior management:

“We are seeing extensive demand from our existing and new customers for institutional grade logistics facilities in the region,” said Trent Iliffe, joint managing director, Logos.

“We have been in India for over two decades, developing iconic business and IT Parks… Entering the industrial and logistics sector is a natural progression,” Miguel Ko, group CEO Ascendas-Singbridge said.

Srinivas N, managing director, Industrial Services, of Chicago-based JLL India, said, “Thanks to fresh investments, supply and interest in this sector, the Indian logistics industry is set to reach the next level.”

“It is a good time for developers/investors to evaluate this sector to add to quality organized warehousing infrastructure keeping in perspective the latent demand and consolidation/expansion expected post-GST roll out,” said Shyam Arumugam, associate director, Office Services, of Canada-based Colliers International India.

Amazon and DHL announced plans to expand their warehouses, reports BusinessLine.

warehouse

August 21, 2017   No Comments