FDI IN RETAIL
Decathlon starts listing rival brands on its site
Decathlon India has begun listing rival brands like Adidas and Garmin on its website, redirecting customers to the brands' sites for purchase. This approach aligns with Indian FDI regulations, while in-store sales remain limited to Decathlon's own brands. Online sales contribute 15-20% of Decathlon India's ?4,500 crore annual revenue.
We¡¯re 100% compliant with FDI regulations; aim to be majority India-owned: Zepto¡¯s Aadit Palicha
Monthly cash burn expected to have topped $35 million, but Zepto's Palicha says company is multiplying on the scale of billions of dollars. Zepto plans an IPO on Indian exchanges, distancing itself from foreign-backed firms. The startup's rapid growth, fueled by $1.4 billion in recent funding, positions it as a key player in India¡¯s $616 billion grocery market, competing with Blinkit and Swiggy Instamart.
Ecommerce firms should respect law of land: Piyush Goyal
Recently Piyush Goyal had stated that some ecommerce firms were violating foreign direct investment norms and follow unfair pricing. The Confederation of All India Traders (CAIT) too had claimed the violation of the same which hurt small businesses.
ED uncovers Amazon and Flipkart's direct links with sellers
The Enforcement Directorate (ED) has uncovered evidence suggesting that Amazon and Flipkart exert significant control over their preferred sellers. Investigations revealed close ties between these sellers and the e-commerce giants, with evidence suggesting control over inventory, pricing, and profits. The ED is preparing a formal complaint alleging violations of foreign investment laws.
ED shifts focus to Amazon and Flipkart ties with sellers
ED is investigating alleged violations under the Foreign Exchange Management Act (Fema) that are ordinarily civil offences entailing monetary penalties. Earlier this month, the agency conducted nationwide searches at 19 sites related to large sellers on Amazon and Flipkart in New Delhi, Bengaluru and Hyderabad.
CAIT releases white paper with allegations of unfair trade practices against quick commerce companies
Indian traders are worried about quick commerce platforms. CAIT says these platforms are using unfair practices to control the market. They are accused of hurting small businesses like Kirana stores. The traders want the government to take action. They want stricter rules for these platforms to protect small businesses.
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Deep discounts and cash backs during festive sales by e-commerce companies are killing small retailers: CAIT
Industry body Confederation of All India Traders (CAIT) has raised concerns on the deep discounts or cashbacks provided by the e-commerce festive sales by the companies, which tends to monopolise the retail market, hence reducing the abilities of the small offline retailers.
Govt¡¯s queries on q-comm; Piyush Goyal at The ET Startup Awards ceremony
The government is attempting to understand the ownership structures of foreign-funded quick commerce firms and their dark stores. This and more in today¡¯s ETtech Morning Dispatch.
India¡¯s textile industry to grow to $350 bn by 2030, add 3.5 cr jobs
India's textile industry is projected to grow to $350 billion by 2030, creating 3.5 crore jobs, according to textiles minister Giriraj Singh. The Bharat Tex 2025 event aims to boost India's global sourcing and investment appeal, featuring over 5,000 exhibitors and attracting international buyers and speakers.
Quick commerce market booming: FMCG distributors raise red flags, seek scrutiny
FMCG distributors in India have urged government scrutiny of quick commerce platforms, citing threats to small retailers and potential FDI violations. Their letter to Commerce Minister Piyush Goyal sought an immediate investigation into these platforms' operational models and protective measures for traditional distributors. The rapid expansion of platforms like Blinkit, Zepto, and Instamart was highlighted.
Has e-commerce boom really hampered the growth of brick-and-mortar retail?
The article discusses ecommerce in India, recounting a 2014 conversation about its benefits. Piyush Goyal expressed concerns about its social impact and mobile store decline. Despite challenges, ecomm provides diverse products and supports jobs. The need for balanced regulation that fosters innovation and investment is highlighted.
Not against ecommerce firms, want them to be fair and honest: Piyush Goyal
"What the country always desires is fair play, is honesty'? for the customer, honesty to the supplier of goods and services and to ensure that other people also have a fair chance to compete against such online business," the Union minister, a member of Parliament from the Mumbai North constituency, said.
Paytm soars 10%, hits upper circuit after govt approves FDI proposal for payment aggregator biz
Paytm FDI Proposal Approved: Shares of fintech major Paytm surged up to 10% intraday on Friday following government approval of its foreign direct investment (FDI) proposal for the payment aggregator business. The financial services secretary announced that Paytm can now approach the Reserve Bank to seek the payment aggregator license, which will undergo further evaluation.
SoftBank's stake in Paytm slips below 1%
Paytm parent One 97 Communications has reported that domestic investors and mutual funds have upped their holding in the company, in the first quarter of FY25. Retail investors grew their stake by 1.3% in the quarter, while mutual funds upped their holding by 0.65%.
Reliance Retail's gearing up to do a Decathlon
Reliance Retail plans a sports format to rival Decathlon, targeting 8,000-10,000 sq ft spaces with play areas post-Covid. Athleisure demand surged, filling a retailer gap in India. Leading sports brands saw 35-60% sales growth since FY21. Decathlon's FY23 revenue hit ?3,955 crore. FDI rules impact Decathlon's operations. India's 1.4 billion population drives market growth.
PE investment in real estate hits $2.5 bn in Q2, a 3-year high
Institutional investments in India's real estate sector surged to a three-year high of $2.5 billion in the June quarter, primarily driven by robust activity in the industrial and warehousing, and residential segments, according to Colliers. The industrial and warehousing segment attracted the majority of investments at $1.5 billion, marking an 11-fold increase from Q2 2023, while the residential segment also experienced significant growth. Conversely, investments in the office sector plummeted 83%. Foreign investors, particularly from the US and UAE, were prominent contributors in the market, indicating a positive outlook for the industry.
Sellers on Flipkart facing issue in changing price, firm denies any intervention in pricing
The Walmart group firm, however, denied any role in influencing pricing on the platform and said that it is working with sellers to help them understand the new rate card policy.
Hiring in tier-2 cities showing consistent growth: foundit
Tier-2 cities in India have seen consistent growth in hiring compared to metropolitan areas, with cities like Kochi, Coimbatore, and Jaipur emerging as key hiring locations. The overall hiring index shifted to 295 in May 2024, with an 11% increase in hiring compared to the previous year. Tier-2 cities are becoming increasingly attractive hubs for businesses seeking expansion opportunities and tapping into diverse talent pools for sustainable growth.
Leasing takes off as Make in India settles
The government's focus on Make in India and production linked incentive (PLI) schemes to promote local manufacturing has started to yield results as seen in rising leasing demand for light manufacturing and warehousing. The growth is further evidenced by a 4.5 times surge in leasing activity for light manufacturing spaces in 2023, compared to 2020.
Supply chain realignments position India, SE Asia as manufacturing hubs, beyond China
The government¡¯s focus on Make in India programme and the production linked incentive (PLI) schemes to promote manufacturing has started to yield results as indicated by leasing demand for light manufacturing and warehousing. This robust growth is further evidenced by a notable 4.5 times increase in leasing activity for light manufacturing spaces in 2023, as compared to 2020, with projected year -on year growth of over 25% in 2024, shows a JLL study.
ETMarkets Smart Talk: Nifty@22K! Retail investors can put lumpsum in Balanced Advantage, Value Funds & ELSS: Rajesh Bhatia
Rajesh Bhatia, CIO at ITI Mutual Fund, advises lumpsum investment in Balanced Advantage Funds, Value Funds, and ELSS Tax Saver Funds. He suggests systematic investment in mid and small-cap categories. India's weight in the MSCI index is increasing, attracting foreign capital inflow. The Indian corporate sector earnings have benefited from lower commodity prices.
Indian economy under PM Modi offers 'real alternative' to China, says CNN report
India emerges as a "real alternative" to China for investors as the benchmark indices hit new highs, FDI inflows surge, and strong infrastructure investments continue. Experts see Prime Minister Narendra Modi's return to power as a positive for economic policies. India's stock market reaches record highs, with optimism for future growth, in contrast to China's economic challenges.
Ikea looks at next round of investment in India after fulfilling Rs 10,500-cr promise
IKEA is planning the next round of investment in India to expand its presence, increase sourcing, and further build its volume. The company has exhausted its initial commitment of Rs 10,500 crore and is formulating plans for the next level of investment. IKEA's India CEO believes that India has great growth potential and sees it as a huge opportunity market. The company is focusing on the South and West regions but is also considering expansion to other cities such as Lucknow and Chandigarh. IKEA is also working to increase sourcing from Indian markets for its global retail operations.
Kazakhstan seeks higher FDI from India as foreign investments increase in the country
The first half of 2023 saw a $13.3 billion influx of foreign direct investment (FDI) into Kazakhstan. The Netherlands, the US, Switzerland, Russia, China, South Korea, Belgium, France, UAE, and Luxembourg emerged as the top contributors. Astana is keen for increased investments by India.
RBI¡¯s warning on exuberant retail lending has deeper dimensions
A recent RBI research delves into the empirics of retail credit growth and concludes that the quality of retail loan portfolio is healthy across banks, product categories, and borrower risk classes, even as growth continues to surge.
Budget 2024: Will government liberalise FDI to multi-brand retail?
Interim Budget 2024: India's economic growth relies heavily on the retail sector, which contributes over 10% to the country's GDP. However, the government has been hesitant to open up multi-brand retail trade (MBRT) to foreign direct investment (FDI). While 51% FDI in MBRT is allowed under approval route, obtaining such approval can be challenging. Opposition to liberalizing FDI in MBRT stems from concerns about crowding out domestic retailers, harming small traders, and leading to job losses.
Budget 2024: Could aggressive tax and regulatory reforms supercharge India's consumer industry?
The preferences of a tech-savvy and aspirational demographic are compelling companies to adapt, innovate and align their offerings to suit evolving demands.
India set to be world's third-largest economy by 2030: S&P Global
The economy will more than double to $7.3 trillion over this period, from $3.5 trillion in 2022, the financial information services firm said. India is currently the fifth largest economy, having gone past the UK in 2020.
Exclude ecommerce firms whose main platforms don¡¯t onboard ONDC: Piyush Goyal
The minister also invited big and small retailers to join the network as it would help to create huge opportunities for everyone.
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