The Yogi Adityanath government has set its ambitions very high. But its goal of transforming Uttar Pradesh into an industrial powerhouse shows early signs of promise. Progressing from pauper to prince is the stuff of dreams. So, when Indian Prime Minister Narendra Modi asked at a recent investor summit whether Uttar Pradesh, India’s most populous state with a population of 200 million, could compete with Maharashtra to try and become India’s first trillion-dollar state, there were polite smiles all around. [...]
Tech major Dyson leads the charge of investments in the Indian market as Make in India makes its automotive mark. Tyremarket.com raises UK funds Bengaluru-based online tyre retailer Tyremarket.com has raised around $500,000 from UK-based online tyre retailer Blackcircles.com’s founder Michael Welch. Tyremarket is headed by former Siemens Healthcare executive Sanjeev Agrawal, who is co-founder and CEO. Tyremarket, which was started in 2015, operates a lean business model similar to Blackcircles. It is an online marketplace for supplying tyres to [...]
Alok Shrivastava, Director – Business Intelligence and Planning at Gionee India, talks ‘India Investment Journal’ through the China-headquartered smartphone manufacturers trajectory of growth in the country, its Make in India plans and gaining a competitive edge. How have Gionee's Make in India plans progressed since its entry into the market? The Make in India campaign has opened doors for the companies to build in India. India is one of the most important markets on the global map of Gionee and [...]
India’s textile sector is undergoing a long overdue restyling, writes India Inc. Founder & CEO Manoj Ladwa.
The Indian textiles industry is a $100-billion giant, which employs about 50 million people, making it the country's largest employer in the organised sector. It is also one of the largest contributors to the export trade, accounting for nearly 15 per cent of India’s total exports. This 5,000 year old industry is arguably also the oldest in the world. So, it might appear a bit strange for me to then call this moulting giant a sunrise sector until you realise that the headline figures, as impressive as they are, merely scratch the surface of its untapped potential.
The Indian textile sector already has all the ingredients necessary for global leadership: abundant raw material both natural and man made talented and relatively cost-effective labour, world class design talent and an entrepreneurial class with astute business acumen.
The one key input that this sector lacked so far was sufficient governmental support in the form of freedom from bureaucratic red tape and official zeal to push ahead of all players.
With an ambitious minister like Smriti Irani now in charge of the ministry and the full support of a ‘can-do-will-do’ Indian Prime Minister, that last requirement is now no longer a constraint.
The opportunities are massive. India has a minuscule sub-four per cent share in readymade gar-ments. This is the segment where the maximum value can be captured. It’s also the segment in which India lags behind countries such as China, Bangladesh, Vietnam, the Philippines. There is no reason for this status quo to continue, and I'm glad to see that the Indian government is actively collaborating with the industry to fix the situation.
After decades of gathering dust in the proverbial closet, the textiles sector is witnessing a rejuve-nation.
Global majors such as Zara, Benetton, Levi's, Marks & Spencer, H&M, as well as Indian majors such as the Aditya Birla Group, Raymond and Bombay Dyeing are investing billions of dollars on both the front and back ends of their operations, to use India both as a sourcing base as well as a market for their products.
Wages are rising in China, diminishing the competitive edge of its producers, many of whom are contract robbers for large Western buyers. These American and European principals, as well as many Chinese companies, are now looking for other destinations to move their factories. It is the perfect opportunity for India to step up its game and capitalise on this shift in the global market. And there is every indication that the Indian industry, with the proactive support of the Narendra Modi government, is working towards doing so.
India is the largest producer of cotton and jute, and the second-largest producer of both silk and man-made fibres in the world. Its large pool of talented workers, abundant local sourcing oppor-tunities for the wide range of materials and the thousands of design school graduates mean India can easily achieve the required dramatic ramp up in capacity. The nearly $1billion Textile Policy unveiled recently aims to facilitate precisely this transition.
The textile sector, which is highly labour intensive, has a huge job potential and can generate mil-lions of low, medium and high skilled jobs for the large battery of young Indians who enter the In-dian employment market every month. The latter being a useful resource, with more and more Indian designers from Dhruv Kapoor and Soham Dave to industry names like Ritu Kumar and Sa-bhyasachi Mukherji taking on a revivalist approach to Indian textiles and fabrics. India’s National Institute of Fashion Design would do well to extend this heritage approach towards training future designers. It is a little-known fact that ancient Rome yes, the fabled Roman Empire had to im-pose a partial embargo on imports of Indian textiles because Indian merchants were taking away a disproportionate amount of Roman gold, creating major problems for the Roman economy.
Such was the draw and value of Indian textiles in an earlier age.
The current shifts in the global market mean the entire western market, as well as those in Africa, South America and the Far East, could be up for grabs. If Irani and her team works closer with In-dia’s Commerce Ministry to explore ways in which to boost exports, especially in Africa, with a major focus on job creation, this market or at least a part of it could easily fall into India’s lap.
The next few years should be an interesting time for Irani, and if she and her team can pull this transition off, they might just restore the historical status Indian textiles once enjoyed in the world.
Manoj Ladwa is the founder of India Inc. and chief executive of MLS Chase Group @manojladwa
Japan’s NTT eyes India growth
Japan’s NTT Communications Corporation (NTT Com), an ICT solutions and international communications business within the NTT Group, has announced the launch of its international data network services in India through its affiliate NTT Communications India Network Services (NTTCINS).
The acquisition of this licence in India follows the initiation of construction of the company’s two new data centres in Mumbai and Bangalore, through Netmagic, a subsidiary of NTT Com and one of the leading managed hosting and cloud service providers in India.
NTT Com President and CEO Tetsuya Shoji said: “India has been a key strategic market for us with the accelerating shift of IT services from traditional enterprise data centres into the cloud-based services.
“For the past few years, our business in India has consistently grown over 35 per cent annually. With further expansion of data center foot print and addition of international data network services to our service portfolio, we aim to meet the growing market needs for Mobility, e-Commerce, Internet of Things (IoT), Cloud and Big Data.”
IKEA to set up in Bengaluru
Swedish furniture giant IKEA has finalised Bengaluru as the base for its third Indian store after Hyderabad and Mumbai.
The company has announced plans for 25 stores in India by 2025, with the first set to open in Hyderabad early next year.
In Bengaluru, the firm has acquired a 14-acre land parcel from the Bangalore Metro Rail Corporation at Nagasandra on Tumkur road. The IKEA store in Bengaluru is expected to have more than 5 million visitors per year and will be connected to the Nagasandra metro station to offer easy access for the customers.
Karnataka Chief Minister Siddaramaiah said in a statement: “IKEA will bring best business practices, many employment opportunities, infrastructure development and contribute to the growth of the retail sector in the State. IKEA will work as a catalyst in our development plans.”
IKEA India CEO Juvencio Maeztu added: “Karnataka is a highly strategic and important market for IKEA. Along with retail stores, IKEA’s purchasing team will also grow local sourcing and engage with local artisan and communities in many projects.”
With its tremendous untapped potential, Karnataka is an appealing locus for French companies.
France and India have always been very close. The ties between our two countries have nevertheless been strengthened over the years: whether it be culture, defence, the economy, education, politics or science, our relationship has now grown into a full-scale partnership. While our bilateral trade in goods is expected to come near the $10 billion mark this year (€8.6 billion in 2016), it bears reminding that our trade in services has also thrived, with France’s exports and imports to and from India reaching about €1.4 billion and €1.8 billion, respectively.
Y.K. Koo, as Managing Director & CEO of Hyundai Motor India Limited (HMIL), is in the driving seat of one of the leading automotive giants in India. ‘India Global Business’ explores his vision for the Indian market, plans for the country as an exports hub and R&D plans for the region. How important is India for Hyundai globally, as a market and as a production hub? India has emerged as an important automotive market and offers huge growth potential for [...]
India Inc. Founder & CEO Manoj Ladwa tracks how India has driven its auto sector on to the road of global success. Even as you read this piece, there are at least 1,500 passenger cars and 6,000 motorcycles being loaded onto ships at some Indian port for export to the Middle East, Africa, Europe and even the US. The badges they wear read like a veritable who’s who of the international auto industry and include such marquee names as Toyota, [...]
Country’s robust automobile manufacturing base is now churning out cars and bikes for diverse geographies from Latin America, Africa to East Asia and Australia. In fiscal 2016, India exported more cars across the world than China. On the one hand, it does not mean much. In the overall list of top car exporters, India still ranks a poor 20th. Even among emerging economies in Asia, it is behind Thailand. Yet, overtaking China has its own importance. It is the world’s [...]