Beauty & Wellness business in India has potential to reach Rs 80,000 crore

Source:, Jul 10, 2019

Beauty and wellness business in India have a market potential of Rs 80,000 crore (US$ 11.12 billion) and can provide employment opportunities to lakhs of individuals.

“Skilling course is a significant tool of women empowerment as the students after preparing can set up wellness and beauty focuses by availing easy loans like Mudra and can also persuade others for such productive business opportunities” said by skills development minister Mahendra Nath Pandey.

Over 62 per cent of India’s population is youthful and as per prime minister’s vision to make India as one of the biggest skilled economy in the world. Read the rest of this entry »

India seeks to buy $2 bn worth warships to meet security challenges

Source: The Hindu Business Line, Jul 02, 2019

New Delhi: India sought bids for purchase of warships and support vessels for its navy and coast guard as it ramps up security of its maritime border in the Indian Ocean region.

The government on Monday asked seven shipyards to submit proposals for the construction of six missile warships and other smaller vessels worth ₹15,000 crore ($2.2 billion), the Defence Ministry said in a statement. The tender includes eight fast patrol vessels, 12 hovercrafts and eight missile-cum-ammunition barges.

The shipbuilders invited include private shipyards Larsen & Toubro Ltd. and Reliance Naval & Engineering Ltd., apart from the state-run Mazagon Dock Shipbuilders Ltd., Garden Reach Shipbuilders and Engineers Ltd., Goa Shipyard Ltd., Hindustan Shipyard Ltd. and Cochin Shipyard Ltd., people with knowledge of the matter said. They asked not to be identified citing rules. Read the rest of this entry »

Online food ordering market to touch $17.02 bn by 2023: Study

Source: The Hindu Business Line, Mar 26, 2019

Guwahati: The online food ordering market in India is likely to grow at over 16 per cent annually to touch $ 17.02 billion by 2023, according to a study by business consultancy firm Market Research Future.

The study, titled ‘Digital Platforms Reign in the Food Ordering Market’, said the growth in online food ordering market has been attributed to the rising number of women in working population in most of the metro cities.

“The Indian online food ordering market is slated to grow at a CAGR (compound annual growth rate) of 16.2 per cent at $ 17.02 billion by 2023,” it said.

According to the study, 95 per cent of the respondents surveyed order food online, owing to promotional offers and discounts, while 84 per cent individuals said its hassle-free and time-saving. Read the rest of this entry »

India to get first jewellery park set on 21 acres at Navi Mumbai

Source: Business Standard, Mar 05, 2019

Mumbai: A year after signing a memorandum of understanding (MoU) with the Maharashtra government, the gems and jewellery sector is set to get India’s first jewellery park on Tuesday in Navi Mumbai.

Union Minister of Commerce and Industry Suresh Prabhu is scheduled to lay the foundation stone of the park, which would be developed on co-operative housing model basis, accommodating about 4,800 large and small units encompassing the entire jewellery value chain.

The Maharashtra government has allotted 21 acres to the park and has also assured it will provide all possible assistance for its development and smooth functioning. The jewellery industry is expecting a fund allocation from Maharashtra for workers’ welfare and for small business units in the jewellery sector. Read the rest of this entry »

“Procurement from GeM platform to touch Rs 25,000 cr this fiscal”

Source: The Hindu Business Line, Feb 07, 2019

New Delhi: Procurement through the public procurement online platform — Government e-marketplace (GeM) is expected to touch Rs 25,000 crore in the current financial year, as against Rs 5,000 crore last year.

The commerce and industry ministry launched the GeM in August 2016 with the objective of creating an open and transparent procurement platform for government departments and agencies.

GeM Chief Executive Officer (CEO) Radha Chauhan said the online platform for central and state government departments has set a procurement target of Rs 1.5 lakh crore for purchase of goods and services in the next 4-5 years.

The procurement from GeM will reach Rs 25,000 crore by March-end this year, Chauhan said.

Besides, she said 26 per cent of the procurement on the platform is done from Micro, Small & Medium Enterprises (MSMEs) and more than half of the orders go to them.

Earlier, the GeM CEO addressed the Global Procurement Summit organised by AIMA here.

French firm’s Indian unit buys Prabhat’s dairy business for Rs 1,700 crore

Source:  Business Standard, Jan 22, 2019

Global dairy major Lactalis will buy Mumbai-based Prabhat’s milk business in its third acquisition in India.
Prabhat told the stock exchanges on Monday that Lactalis’ Indian subsidiary Tirumala Milk Products was acquiring its dairy business for Rs 1,700 crore, which is 1.09 times its FY18 sales of Rs 1,554 crore. The transaction is subject to mandatory approvals. The company did not specify a timeline for completion of the deal, but analysts expect it to be done in the next six months.

At Monday’s closing price of Rs 93.05 per share, Prabhat’s market capitalisation stands at Rs 909 crore. Kotak Mahindra Capital Company was the financial advisor to Prabhat on the deal. Veritas acted as the legal advisor.  Besides the dairy business, the transaction also involves sale of 100 per cent shareholding in Sunfresh Agro Industries, a step-downsubsidiary of Prabhat, via a share purchase agreement, the company said.
Prabhat will now focus on its cattle field and animal genetics business with the sale of its dairy business.

Earlier this month, Prabhat had tied up with Denmark-based DLG Group as part of its plans to foray into the animal nutrition business. The company had been looking to offload its dairy business for some time now, said experts tracking the market, and was in talks with Tata Global Beverages last year for a possible sale at Rs 400 crore. That did not come through though.

Raviraj Vahadane, chief financial officer of Prabhat Dairy, said, the acquisition represented a meaningful opportunity for the employees of the company to be associated with one of the global leaders in the dairy products business.  The company intended to share a substantial portion of the proceeds from the sale with shareholders after meeting its tax and transaction cost obligations, he said.

For Lactalis, the acquisition of Prabhat’s dairy business is its fifth in five years. In January of 2014, the company had bought South India’s second-largest dairy company Tirumala Milk for Rs 1,750 crore. It then snapped up the dairy business of Indore-based Anik Industries for Rs 470 crore in March of 2016, indicating that it was ready for more.

Need long-term visibility, investment in renewables

Source:  The Economic Times, January 22, 2019

Steps need to be taken to make renewable energy financially sustainable and more centric to the power situation, experts said.

“The most important thing for us is the continuity of policies,” said Sumant Sinha, chairman, ReNew Power. “The path that needs to be taken is very clear. The only concern is that returns have gone down, and new capital will find it a little bit harder to come in.”

The government has brought the sector to the forefront and global stage by spearheading the International Solar Alliance, attracting some of the biggest domestic financial investors, who now want the government to emulate China.

The industry expects the government to provide longterm visibility for procurement of power through storage-configured renewable projects and policies, to bring new investment towards gigascale factories for manufacturing modules and batteries under Make in India,” said Manoj Kohli, executive chairman at SoftBank-led SB Energy.

Solar manufacturers want safeguards from cheap imports. “It is imperative to consider antidumping as policy or regulation. Lack of a robust policy leads to influx of low-quality products in the market, forcing domestic manufacturers to compete at unsustainable prices, leaving no scope to innovate or increase capacities,” said Sunil Rathi, director, Waaree Energies. The industry also sees the need for better grid management.

The government must ensure that projects in the pipeline are delivered on time by removing bottlenecks, said Vipul Tuli, managing director, Sembcorp Energy India. “Steps also need to be taken to ensure that in an election year, discom finances are not further weakened due to populist measures.”