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Tag: DIPP

  • Amazon India proposes $500m food venture

    Amazon India proposes $500m food venture

    Amazon India has applied to the government to invest US$500 million in a wholly owned venture that will allow the US eCommerce giant to stock locally produced food items and sell them online.

    If successful, it would become the first foreign retailer to enter the segment.

    Amazon already has an eCommerce marketplace in India, but while 100 per cent overseas capital is permitted for such platforms, they cannot sell products of their own. Last year, the government allowed for 100 per cent foreign investment in the retailing of processed foods made in India.

    Amazon has filed its application with the Department of Industrial Policy & Promotion (DIPP), which handles foreign investment in retailing and e­Commerce. The company plans to invest $500 million over five years and could start selling locally produced food items within six months of obtaining approval, says an insider.

    “We are excited by the government’s continued efforts to encourage foreign direct investment in India for a stronger food-supply chain,” says an Amazon spokesperson. “We have sought an approval to invest and partner with the government in achieving this vision.”

    Only Indian grocery delivery companies Big­Basket and Grofers have applied under
    the category, prompting the government to invite companies including CP Foods (Thailand), Heinz, Nestle and Walmart to provide feedback and investment plans.

    This followed the minister for food-processing industries Harsimrat Kaur Badal visiting London with a team of officials last year to meet representatives of such companies as Cobra Beer, Harrods, Marks & Spencer, Sainsbury’s and Tesco to drum up support for the policy.

    Amazon’s current online platform is open to Indian-­owned entities, and similar platforms are run by Flipkart, the country’s largest eCommerce company, and Snapdeal.

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  • Dyson plans to enter India

    Dyson plans to enter India

    UK company Dyson, known for its innovative vacuum cleaners and air purifiers, plans to open its own retail stores in India by the middle of next year.

    It has already sought permission from the Department of Industrial Policy and Promotion (DIPP) to import and sell products in India.

    “If we get the permit, we’ll set up middle of next year,” says founder James Dyson, in New Delhi for the India-UK Tech Summit.

    “Over the first five years, we’ll invest about £154 million [US$190.8 million] in India. Our investment will be in building infrastructure (retail), taxes (to the government), marketing and promotions.”

    India will be the 76th market for Dyson, which in its last overseas foray entered China three years ago.

    “India is an interesting market, but it may take time to develop – unlike China, which has emerged as the third-largest market for Dyson after the US and Japan,” says Dyson.

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    The company’s plan is to set up a retail store in each of the top 20 cities in India, as well as selling through other retailers and online shopping portals.

    “Online helps our business,” Dyson says. “We sell through Amazon in some countries and may sell through Amazon in India as well.”

    The company will import products from Malaysia, Singapore and Philippines for the Indian market. Depending on volume, Dyson may look at making products in India after a few years.
    As well as vacuum cleaners, the company will also look at the beauty and hygiene market with hair dryers and hand dryers, as well as LED lighting products.

    Dyson is a family-owned technology company that employs more than 7000 people globally—a third of whom are engineers and scientists.

    “India produces 1.3 million engineers every year – that’s very exciting. We’ll look at working with Indian universities soon,” Dyson says. The company spends £5 million a week in research, design and development, and has more than 200 live technology projects and 50 active research programs with 40 universities around the world.

    Dyson’s revenue rose 26 per cent to £1.7 billion last year while profit increased 19 per cent to £448 million.

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  • Apple India stores a step closer

    Apple India stores a step closer

    A government panel has recommended the removal of a trading obstacle that would free Apple India to open single-brand retail stores across the country, one of its few growth markets.

    A three-member panel has recommended the waiving of the mandatory 30 per cent local sourcing condition for Apple, which earlier this year asked the government to consider the exemption. The reason for the waiver is said to be the cutting-edge technology the company would bring to India, reports The Tech Portal.

    With the committee’s finding, Apple is just a step away from a final decision. The Department of Industrial Policy and Promotion (DIPP) will send the proposal for final approval to the Finance Ministry.

    Apple has retail stores across the world, including China and Japan. In India, it sells its products through exclusive reselling arrangements with chains such as Imagine and iStore.

    In November last year, India scrapped the condition of 30 per cent local sourcing for overseas companies seeking to invest more than 51 per cent equity in the single-brand retail segment, if certain other conditions are met.

    Chinese tech retailer Xiaomi has also applied to open single-brand stores in India while seeking the sourcing exemption for a range of products including Wi-Fi amplifiers, Bluetooth speakers and power banks.