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KPMG in India
Accounting firm KPMG has set up a new business unit in India. The
global major plans to make the country a major offshore hub. The
move is part of its strategy to double its global revenues from
US$ 16 billion to over US$ 30 billion by 2010. KPMG UK and KPMG
India have set up a 50:50 joint venture with an initial strength
of 150 professionals to provide advisory services to KPMG's global
clients.
Stan Charts growth plan
Standard Chartered Bank has invested US$ 120 million so far this
year in its Indian operations, which is expected to contribute over
10 per cent of its global profits in '05. Standard Chartered Bank
posted 39% growth in profit before tax at $2.2bn from worldwide
operations in '04, with revenues increasing by 13% to $5.4bn. To
sustain the growth momentum, Standard Chartered Bank has invested
$100m in the Indian bank arm in two tranches - $50m in June and
an equivalent amount last month. The London-based bank has also
infused $20m in the non-banking finance company in India. The bank
tied up with Oriental Bank of Commerce for agency trade services.
This was the ninth such tie-up as StanChart already has similar
agreements with other Indian banks like PNB, Central Bank of India,
Union Bank of India and Corporation Bank. With these initiatives,
the bank expects double digit growth in business in India. StanChart
has 80 branches in 32 cities in India, servicing 2.4m retail customers
and over 800 top corporate clients.
25 FDI proposals cleared
Soft drink major Coca Cola's US$ 119 million proposed investment
in its Indian arm was among the 25 FDI proposals totalling US$ 168
million cleared by Finance Minister P Chidambaram .Vodafone's plans
of picking up up to 49 per cent stake in Bharti for Rs 32.90 crore
(Rs 329 million) was also among the major FDI proposals approved
by Investment Promotion Board in its meeting held on November 11,
according to a Finance Ministry release. Gujarat State Petronet
Ltd will see an inflow of Rs 138 crore (Rs 1.38 billion) from FIIs,
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NRIs and other foreign investors who have subscribed in its initial
public offer. Rabobank's proposal of picking up 20 per cent stake
in Yes Bank for Rs 8.37 crore (Rs 83.7 million) was also approved.
The government also gave a green signal to UK-based Mothercare for
setting up a wholly-owned subsidiary in India for an investment
of Rs 32.25 crore (Rs 322.5 million). The biggest FDI proposal cleared
on was of Coca Cola South Asia, which will invest Rs 549.36 crore
in Hindustan Coca Cola.
Government clears Nokia's SEZ proposal
The Finance Ministry has given the nod to Finnish telecom major
Nokia for setting up a Special Economic Zone (SEZ) at Sriperumbudur
in Tamil Nadu for manufacturing telecom equipment and mobile handsets.
"India is an important market for Nokia and there are no changes
to Nokia's commitment to the Indian market. Our manufacturing facility
in Chennai is in an advanced stage of construction and we are on
course to commence production at this facility in the first half
of 2006," said a statement from Nokia. The company said that
it was confident that it would be able to work with the Government
of India to ensure smooth progress of the Chennai project. Nokia
had earlier announced over Rs 650 crore of investment in the country
to set up a manufacturing base.
Niche foreign retailers in India
Niche foreign retailers are making a beeline for the Indian market.
In fact, despite the FDI policy pertaining to retail being unclear,
over 10 foreign niche segment retailers have recently set up or
announced their intention to set up shop in India using the franchisee
route, with several others waiting in the wings.
Retailers such as Guess, Esprit, Chanel, Clarks, Mango, Aigner,
Bvlgari, Hugo Boss, Mark & Spencers and Tommy Hilfiger have
already built a retail presence in the country, while market watchers
point out that several more such as Versace, FCUK, Zara, Mother
Care, Ikea, Fendi, NEXT, Debenhams, Trussardi, and DKNY have charted
out a strategy to enter the Indian market.
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Most of the brands entering
the market are targeted at the premium end. According to estimates,
the premium apparel segment in India is valued at about Rs 1,900 crore
and growing at 20 per cent. "All the indicators are pointing
in the right direction. India has a considerably young population
and the purchasing power is increasing.
In addition, recent estimates show that the super premium market is
growing at about 30 per cent annually. For instance, the sale of diamonds
in India is growing at about 26 per cent per annum," says Mr
Hemchandra Javeri, President, Madura Garments, which recently entered
into an exclusive distribution tie-up with fashion brand Esprit. Esprit
has launched outlets in Mumbai, Delhi and Bangalore.
Similarly, the UK-based footwear brand Clarks has entered into a franchisee
tie-up with Lifestyle India Private Ltd and plans to invest £20
million in India over the next five years to open outlets. The brand
recently set up exclusive stores in Mumbai, Delhi, Bangalore and Ahmedabad.
North India-based Blues Clothing Company has entered into franchisee
tie-ups with Italian fashion brands Versace and Cadini and plans to
open outlets for these brands shortly. "We have been selling
Versace apparel through our own stores. The purchasing power definitely
exists," says Mr Abhay Gupta, Executive Director, Blues Clothing
Company.
Mother Care UK Ltd, another retailer with a strong European presence,
is also gearing up to enter the country in a franchisee tie-up with
Shopper's Stop, with plans to set up 40 outlets.
In fact, the Indian retail scene is expected to change considerably
over the next year with not only new players coming in, but also with
the foreign players operating in India charting out major expansion
plans.
Italian brand Benetton recently announced that it plans to double
retail space, increase production base and introduce a new brand and
other fashion items in India.
The company plans to set up 50 more retail outlets in India, taking
the total number of outlets in the country to 100. |
