India :100% Foreign Direct Investment permitted in E-Commerce

e-commerceSource: INDOLINK

On 29th March 2016, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (DIPP) vide Press Note 3 (2016 Series) released the guidelines for Foreign Direct Investment (FDI) on E-commerce.

FDI up to 100% under automatic route (without prior approval from government) is  permitted in Business to Business (B2B) e-commerce.  Restrictions on FDI in Business to Consumer (B2C)  will continue. No FDI is permitted in B2C E-commerce.

  • A manufacturer is permitted to sell its products manufactured in India through e-commerce retail.
  • A single brand retail trading entity operating through brick and mortar stores, is permitted to undertake retail trading through e-commerce.

In order to provide the clarity on this, E-commerce business is categorized in two categories:

  1. Marketplace based model of E-commerce: Marketplace based E-commerce model means providing of an information  technology (IT) platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller. 100% FDI is permitted in marketplace model of e-commerce.
  2. Inventory based model of E-commerce:  Inventory based model of e-commerce means an e-commerce activity where the inventory of goods and services is owned by e-commerce entity and it sold to customers directly. FDI is not permitted in inventory based model of e-commerce.

With this press note there is more clarity about e-commerce business in India . Also,  it seems for B2C e-commerce to be open for FDI, going to take some more time.

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India, China may soon start producing films jointly

Source: The Hindu Business Line, Feb 11, 2014

New Delhi: he co-production agreement was first discussed between the two countries during a visit by a Chinese delegation led by Cai Fuchao, the Chinese Minister of State Administration of Press, Publication, Radio, Film and Television in June last year.

India has signed co-production treaties with several countries so far, including France, Germany, Brazil, the United Kingdom, Italy, New Zealand, Poland and Spain, among others.

Negotiations are on with Australia and Canada. Japan, Turkey, Korea and Belarus have also shown interest in entering into co-production deals with India.

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India, China may soon start producing films jointly

Source: The Hindu Business Line, February 11, 2014

New Delhi: he co-production agreement was first discussed between the two countries during a visit by a Chinese delegation led by Cai Fuchao, the Chinese Minister of State Administration of Press, Publication, Radio, Film and Television in June last year.

India has signed co-production treaties with several countries so far, including France, Germany, Brazil, the United Kingdom, Italy, New Zealand, Poland and Spain, among others. Negotiations are on with Australia and Canada. Japan, Turkey, Korea and Belarus have also shown interest in entering into co-production deals with India.

Talks with stakeholders

The Information and Broadcasting Ministry Secretary Bimal Julka is currently attending the Berlin Film Festival and is leading a delegation to promote India as a viable filming destination. The Ministry in a statement said Julka has had discussions with stakeholders representing various countries.

He said India’s co-production agreements were unique as they offered multiple benefits to foreign film producers and helped them harness the strengths India’s technically qualified manpower. The Ministry has been working on a single-window clearance mechanism for prospective international film producers looking for permission to shoot in the country.

It has also released an India Film Guide at the festival, giving an overview about India’s film’s policies and is an effort to brand the identity of the Indian film industry and commemorate the celebration of 100 years of Indian cinema.

Single Window Clearance to promote India as a films hub and destination

Source: IBEF.org, Aug 01, 2013

New Delhi: The Ministry of Information & Broadcasting will be working to mainstream a synchronized ‘Standard Operating Procedures (SOP)’ for obtaining permissions for films shooting in India for both Indian and foreign film producers. This would lead to institutionalization and standardized benchmarks for each critical stakeholder involved in the process. The benchmarks identified in the SOP would clearly identify the responsibility of critical stakeholders in terms of clearances / timelines/ permissions required for films shooting. This was stated by Secretary (I&B), Shri Bimal Julka while delivering his inaugural address at the National Workshop on ‘Single Window Clearance for Film Shooting in India’ here today.

Regarding the initiative of the Ministry, Secretary mentioned that the Ministry was in the process of developing a dedicated online portal for operationalising the ‘Single Window Clearance’ System. The website would include the data on various requirements such as custom clearances, visas, cultural sensibilities etc. A Production Resource Guide highlighting different aspects of production as well as logistics and a digital location library of panaromic images of potential production locations would also form an important component of the online portal. The website will also include information on state-wise facilities like transport, hospitality, medical and other local information for the applicants.

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Toy story come true

Hamleys, the world’s largest toyshop with its flagship store in the UK, has opened its first store in India at High Street Phoenix, Mumbai.

Gudjon Reynisson, Hamleys’ global CEO, said at the preview last week that even though it took “250 years for Hamleys to come to India” (the toy shop was founded in 1760), he was happy that it was finally here. And so are we.

The store in India is a joint venture between Hamleys and Reliance Retail Ltd.

Unlike the Hamleys on Regent Street, London, which is spread over seven floors, the Mumbai store has only two storeys. Nonetheless, with an area of 21,000 sq. ft, it is the biggest toy store in the country.

The first floor is dedicated to toys. It begins with the soft toys section, which has fluffy animals of every size and shape possible. Live-sized gorillas, cutesy owls and koalas slouch next to the standard bears and puppies. The rattlesnake collection particularly caught my fancy. These 5ft-long, soft, colourful and most importantly, harmless, creatures are priced at Rs425.

The franchisee store has around 6,000 toys on sale right now. These include Lego games with which you can construct an entire city, WowWee tiger cubs that respond to touch and sound, board games such as Cranium and Dr Wood’s series such as Heist, LoKulus and Tribe, and Playmobil construction sets—the biggest is the train set that costs Rs16,999.

The girls’ section is slightly disappointing, with Barbie hogging the limelight. There’s also a Barbie salon and spa, where little girls can dress up as Barbies and get Barbie haircuts too.

The second floor has a small but neat collection of video games and children’s books (both British and Indian titles). There is also a room where children can hold birthday parties.

Most of the brands at the store are available elsewhere too—the advantage is that here they’re available under one roof. There’s also a sweetmeat stall, a Kodak photo studio and a magic-tricks corner to complete your toy store experience.

In the next six months the second store, a smaller version, will open at the Express Mall in Chennai. And in the next couple of years, Hamleys will set up shop in Delhi and Bangalore too.

Source : Livemint. 13/04/10

 

PVR setting up 60 multiplex screens

Chennai: PVR Ltd, a retail entertainment company, has earmarked around Rs 120 crore for setting up 60 multiplex screens across the country, said Amitabh Vardhan, chief executive officer, PVR Cinemas, who was here on Thursday to launch a multiplex.

Of this, 14 are already operational and the remaining will be opened by the end of this fiscal. The company currently has around 127 screens. The proposed expansion will be funded through debt and equity, said Vardhan while declining to comment on the equity portion and further plans.

The company has invested Rs 14 crore in the new seven-screen multiplex, which has a seating capacity of 1,850.

South India is an important market for the company, said Vardhan. The company is planning to invest around Rs 50 crore in the next 18 months in the south.

Source : Business Standard. 12/04/10

 

M&E industry poised to grow at 13% over next five years

Mumbai: The Indian media and entertainment industry is slated to grow at a compounded annual growth rate (CAGR) of 13 per cent over the next five years to Rs 1,09,100 crore, according to a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and research firm KPMG. The gaming and the animation segments are expected to lead among all others with an expected CAGR of 32 per cent and 18.7 per cent respectively over the next five years.

The industry witnessed a tough phase in 2009 recording a marginal growth of 1.4 per cent to Rs 58,700 crore due to the economic slowdown and reduction in advertising spends. However, despite the slowdown, the TV industry grew 6.8 per cent in 2009.

The film industry contracted 14 per cent in 2009. Over the next five years, the industry is projected to grow at a CAGR of 9 per cent and reach Rs 13,700 crore. Growth drivers for the sector would include expansion of multiplex screens resulting in better realisations, an increase in the number of digital screens facilitating wider releases, higher cable and satellite revenues, improving collections from the overseas markets and ancillary revenue streams like DTH, digital downloads, etc, which are expected to emerge in future.

In the last year, the print media industry showed a very moderate growth of 2 per cent as there was a decline in advertisement revenues, which was partly offset by the growth in circulation revenues. The industry is projected to grow at a CAGR of 9 per cent and reach around Rs 26,900 crore by 2014.

Radio, like other sectors, was affected by the recession too. However, it is expected to grow at a CAGR of 16 per cent over 2010-14 and reach a size of Rs 1, 640 crore by 2014.

The size of the Indian music industry was estimated at around Rs 830 crore, up from Rs 730 crore in 2008, implying a growth of 14 per cent during the reporting period. It is expected to grow at a CAGR of 16 per cent over 2010-14 to reach Rs 1,720 crore. Gaming is expected to be the fastest growing sector in the M&E industry. While the sector showed a 22 per cent growth in 2009, it is expected to grow at a CAGR of 32 per cent in the next five years to reach Rs 3,200 crore by 2014.

Source : Business Standard. 18/03/10