Five-day festivity may see etail market top $1.7 bn in sales

download (10).jpgSource: ETRetail.com, Sept 25, 2017

BENGALURU: India’s online retail market is expected to have grown by over 50% during the festive sales in 2017, as the industry, led by Flipkart and Amazon India, is pegged to crossed $1.7 billion in sales in five days. The annual flagship sale events last year saw over $1billion of sales registered just between Flipkart, Amazon India and Snapdeal, according to industry executives and analysts.

While the first five days of the festive sales have shown clear leadership trends, the entire 30-day period till Diwali is significant for the ecommerce players to boost their numbers, with the total industry gross merchandise value (GMV) during the festive period expected to touch Rs 15,000 crore ($2.3 billion).

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Rule on subsidiaries may limit operational flexibility of firms

Source: LiveMint.com, Sept 25, 2017

New Delhi: The new limit on layers of subsidiaries that companies can have and the requirement to disclose all existing ones announced by the government last week is set to lift the corporate veil over ownership of assets held through a complex web of subsidiaries.

While the move will help the state in its fight against shell companies, it will cost businesses some operational flexibility that they want for strategic reasons, say experts.

The ministry of corporate affairs last Wednesday notified rules that restrict the layers of subsidiaries that companies can have to two, which will apply prospectively.Existing companies, however, have to disclose all details of their entire list of subsidiaries to the registrar of companies within 150 days.

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Making the most of the new industrial policy

Source: LiveMint.com, Sept 25, 2017

The framing of the new industrial policy should be seen as an opportunity to chart a meaningful path for industry’s role in India’s development. The recently released discussion paper by the department of industrial policy and promotion mentions two points that need to be examined closely to grasp the headwinds industry will have to navigate: first, industry’s inadequate expenditure on research and development (R&D). And second, micro, the small and medium enterprises sector facing tough competition from cheap imports from China and other countries with which India has free trade agreements.

To put the first point into context, Huawei’s R&D expenditure (around $6.5 billion) is about the same or more than that of Indian industry, while Microsoft spends (around $12 billion) about the same as the Indian government. Regarding the second point, the consequence of the inflation-targeting framework and its impact on Indian industry via the exchange rate (resulting in cheaper imports from China) would need to be studied in greater detail.

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Pharma exports pick up in August; but still down compared to last year

Source: The Hindu Business Line, Sept 23, 2017

Hyderabad: The decline in pharmaceutical exports during April – July this year has been halted as they registered a 4 per cent increase in August compared to same period last year.This was disclosed by Madan Mohan Reddy, Chariman, Pharmaceutical Export Promotion Council (Pharmexcil) and its Director-General Ravi Uday Bhaskar on the sidelines of the 13th annual meeting of the Pharmexcil held here on Saturday.

During April-July, pharma exports declined 7.9 per cent. This trend, however, was reversed in August which showed 4 per cent growth,’’ Reddy, who is also Director, Aurobindo Pharma Ltd, said.

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Joint panel formed to boost India, S. Korea trade, investments

Source: The Hindu Business Line, Sept 24, 2017

New Delhi: Seeking greater economic cooperation with South Korea, Commerce and Industry Minister Suresh Prabhu today said a joint panel has been set up to identify areas of high-end technological components to boost trade and investments between the two countries.

The Minister was in Korea for Asia-Europe (ASEM) Economic Ministers meeting. He also participated in the third Joint Ministerial Review of the India-Korea Comprehensive Economic Partnership Agreement (CEPA).

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Hybrid, electric vehicles continue to attract incentives under FAME scheme

download (9).jpgSource: Business Standard, Sept 24, 2017

New Delhi: Electric and hybrid vehicles will continue to attract incentives for at least another six months under the FAME India programme as it has been extended up to March 31, or till the launch of Phase-II of the scheme by Niti Aayog.

The scheme offers sops on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars, thereby lowering their price for buyers.

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Essar to set up 4 small & medium LNG terminals

download (8).jpgSource: The Economic Times, Sept 25, 2017

HYDERABAD: Essar Ports is looking to set up a cluster of small and medium sized terminals for handling liquefied natural gas on India’s west and east coasts to capitalise on the growing demand for the cleaner fuel. The company, part of the Essar Group, which has interests in ports and shipping, has identified land on both the coasts and plans to come up with two terminals in the first phase and two in second phase, with capacities ranging from 2.5 million tonnes per annum (mtpa) to 5 mtpa.

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