Mumbai is in the midst of one of the nation’s noisiest and most fun-filled festivals: Ganesh Chaturthi.
During the 10-day festival, statues of the elephant-headed God are set up at mandals (temporary shrines) around the city and worshipped before being immersed in water – usually on the seafront.
But who foots the bill for this vast celebration with its enormous sculptures, temporary altars and elephantine decorations? Continue reading »
As the global automotive industry continues its recovery there is particularly bright news for investors in OEMs (original-equipment manufacturers – otherwise known as automakers) that are focused on emerging markets.
The global automotive industry has been more successful than most at producing investor value, says the Boston Consulting Group in a recent report, A Comeback in the Making. Component manufacturers posted a median annual total shareholder return (TSR) – a measure of the value a company creates for its shareholders – of 33 per cent between 2009 and 2013, while OEMs produced a TSR of 29 per cent in the same period. Compare this to a 21 per cent TSR for the 26 global industries tracked by BCG.
But it was carmakers focused on emerging markets that were especially successful at pushing up value for shareholders. Continue reading »
Tata Motors, the Indian carmaker, has announced plans to sell its cars in Algeria in a further sign of the growing role that Indian companies are playing in Africa.
Tata said it would launch its passenger cars in a partnership with SPA Elsecom, an established distributor in Algeria. Continue reading »
Ratan Tata (pictured), who was the head of India’s powerful Tata group until 2012, ushered in a period of ambitious international expansion at the company. He is one of the most respected figures in the business community today.
On Wednesday, it was announced that the illustrious businessman has personally invested in Snapdeal, the online marketplace that is battling to win a share of India’s fast-growing market for ecommerce. Continue reading »
Deutsche Post DHL, which makes money by shipping parcels around the world, plans to invest at least €100m in India over the next two years and is piloting a new e-commerce model for the Asia Pacific in the fast-growing market.
The move reinforces the recent take-off in India’s online shopping sector, as large platforms consolidate, infrastructure improves and internet penetration rises. Continue reading »
Yoga guru BKS Iyengar passed away last week. As the tributes poured in, Iyengar was credited with spreading awareness of Indian culture around the world.
The yoga master was awarded the Padma Vibhushan, the second highest civilian award in India, earlier this year – and his style of teaching has become big business in the western world.
The New Yorker provides a glimpse into the master’s childhood and his own education in yoga as a young man in the 1930s, when ‘physical culture’ was taking off around the world: Continue reading »
The details of Gap’s move into the India yields insights into how Asia’s third largest market remains both very distinct from the West and at the same time increasingly similar.
In the US and European markets, womenswear is central to any brand’s expansion strategy, but in India this segment is dominated by traditional dress supplied by local companies. Thus, successful western retailers targeting India have either focused on menswear or on accessories, such as shoes and handbags.
But the strategy of San Francisco-based Gap reveals a market in flux. The group’s local franchisee, Arvind Lifestyle Brands Ltd, envisages the lion’s share of revenue still coming from menswear but at the same time perceives a growing following from women born after 1990. Continue reading »
Nations have negotiated trade agreements in one form or another for centuries. And for centuries economists have undoubtedly been facing the same question: Do trade agreements really matter?
The orthodox answer is obviously that they do. When you lower the barriers to trade goods flow more freely across borders and businesses, consumers and economies as a whole benefit as a result. But HSBC and the Economist Intelligence Unit are out with a new business survey that offers some interesting practical realities. Continue reading »
An eccentric Indian tycoon, some of the world’s most luxurious hotels and now the Sultan of Brunei. The story of one Indian company’s tortuous journey out of legal hot water has just taken another twist.
The Sultan of Brunei has emerged as the lead bidder for the Grosvenor House Hotel and other luxury properties that India’s beleaguered Sahara group has been trying to sell off in a desperate attempt to get its ‘managing worker’ out of jail. Continue reading »
Japanese and Indian culture could hardly be more different, but senior executives at Toto, the Kitakyushu-based toilet products manufacturer, say doing business has been a breeze in Asia’s third largest economy.
The Japanese group, whose fancy ceramic toilet fittings are already used in premier properties like the Four Seasons and Oberoi hotels in Mumbai, opened a manufacturing facility in India this week hoping to expand in the fast growing market.
Toto launched a 180,000 sq metre plant in Halol, Gujarat, that will produce some 500,000 toilet bowls every year. The group’s president, Madoka Kitamura, told beyondbrics that he expects about half of the output to be sold within India while the rest is exported to the Middle East and Europe. Continue reading »
“Anyone who says that Africa is missing the Millennium Development Goals is missing the point.” You might expect such a tart statement about a canonical organising principle of development policy to come from one of the aid industry’s many curmudgeonly sceptics.
That it came instead from Jan Vandemoortele, a Belgian economist who helped create the United Nations MDGs in the first place, raises questions whether propagating a single set of targets to drive government policy across the entire developing and emerging world is worth doing at all. The “sustainable development goals”, successors to the MDGs, are currently being developed, but the unfortunate signs are that they will be yet more complex and yet less meaningful than the originals.
Continue reading »
Martin Sorrell, chief executive of WPP, the world’s biggest marketing services company, is bullish about India, suggesting the market is set for strong growth and that local companies should focus on tapping this vast market before expanding abroad.
Sorrell considers what he would do right now if he were an ‘Indian oligarch’. Some groups have succeeded in expanding globally, be it organically or inorganically, but that strategy comes with its own challenges.
“India is a massive market – it’s a 1.2bn person market, it has benefited from the rise of the middle-class,” he says. “I would milk the opportunities here until I have exhausted them before moving abroad.” Continue reading »
It sounds like a case of selling coals to Newcastle, but UK drink mixer company Fever-Tree plans to start exporting its premium Indian Tonic water to India, where the substance was first concocted about 200 years ago to stave off malaria among British troops in the Raj.
The move is the latest sign of India’s emergence as a big market for luxury consumer goods in spite of a slowdown that has cut overall economic growth to less than 5 per cent annually for the past two years.
Tim Warrillow, who co-founded the company in 2005, is to announce that India will become Fever-Tree’s 50th export market at an event in New Delhi next week with Nick Clegg, UK deputy prime minister. Continue reading »
Since the early days of its software industry in the 1980s, nearly all of India’s large IT companies have earned their crust selling software to companies in America, who have tended to be more open to outsourcing than competitors in Europe and Asia.
But for how much longer? Not that long in the case of Tata Consultancy Services at least, the country’s largest IT group by sales, which soon looks set to earn more than half of its revenues outside the US for the first time, according to chief executive Natarajan Chandrasekaran. Continue reading »
Introducing Raghuram Rajan, governor of the Reserve Bank of India (RBI), at an Independence Day lecture on Wednesday evening, Sajjan Jindal of JSW Steel said he felt ‘at peace’ since the former International Monetary Fund (IMF) economist took over at the central bank last year. That was at a time of turmoil, as a financial crisis swept through emerging markets and the rupee plummeted.
“You’re at peace but you still want lower interest rates,” quipped Rajan in response. “They’ll come.” Continue reading »