Bhubaneswar : Indo Count Industries, a lesser known textiles manufacturer in India, is one of the fastest growing suppliers of home textiles in the US and Europea. The company has entered 49 foreign markets and aims to be a global leader.
For Mumbai-based Indo Count, global retail monolith Walmart offered the gateway. A partnership with Walmart’s home brand ‘Canopy’ over a decade ago helped the Indian textiles maker expand globally.
Being a Walmart supplier has elavated its position to a trusted supplier in the marketplace and has also allowed the company to invest smartly to increase its market share globally.
Indo Count Industries is not a case study in isolation. Hordes of home-grown Indian manufacturers and sellers are profiting incessantly from the business models and facilitation offered by India focused multinationals like Walmart and Amazon. Walmart with its sourcing model and Amazon by offering a ‘Global Selling Programme’, are raising the aspirational bar for small Indian businesses, elevating them to earn the coveted tag of ‘global entrepreneurs’.
Building on its global sourcing model, Walmart has set up a global sourcing centre in Bengaluru. The centre sources an array of India made products- textiles, apparel, pharmaceuticals and handicrafts for catering to 14 international markets.
“India is an important sourcing market for Walmart. Not only do we procure over 95 per cent of the goods sold in our Best Price stores from local companies, including SME (small & medium enterprises) and women entrepreneurs, but we also have a global sourcing centre located in Bangalore. We work closely with and engage our suppliers to understand and meet our responsible sourcing and compliance standards”, said Marilee McInnis, Director Corporate Affairs, Global Communication, Walmart.
Ashish Kapoor, director at Panipat-based Kapoor Industries, reminisces how a partnership with Walmart in 2006 fashioned the growth in the company. According to Kapoor, the company registered a growth of 33 per cent in 2016 and 50 per cent in 2017. Between 2015 and 2017, Kapoor Industries grew from manufacturing 1.2 million pieces per month (600 tonnes) in 2015 to 2.4 million pieces per month (1,200 tonnes) in 2017. “Our plan is growing the production assets by 33 per cent per year which will expand our business by 100 per cent in less than three years”, he says. As the leading producer cum exporter of bath, beach and kitchen towels, Kapoor Industries accomplished annual export (to US) turnover of $125 million in 2017.
If Walmart is spinning success stories of Indian manufacturers in global markets, Amazon is taking ‘Make in India’ to the world, bolstered by its ‘Global Selling Programme’.
Saroj, a global seller on Amazon from Ghaziabad (Uttar Pradesh) started selling copperware online with modest sales of Rs 2,000 per month. He then evaluated the customer feedback and reviews on the global marketplace and repositioned his products. The strategy helped Saroj considerably and his earnings rocketed from Rs 24,000 to Rs 2 crore per year.
Amazon said it is empowering sellers from small towns in India by scaling up their businesses and leveraging the digital economy.
“Today, we have over 50,000 Indian sellers as part of the Global Selling Program, 80 per cent of them are from Tier 2 and below cities. Sellers and manufacturers in India are producing great quality products and there is an opportunity to connect this supply to hundreds of millions of loyal customers on Amazon’s various marketplaces. The aim of Global Selling program is to encourage and empower more and more exporters to come online, reach out to a global customer base and grow and scale their business”, said Abhijit Kamra, Head- Global Selling, Amazon India.
Rohit Mehrotra, co-founder, California Design Den credits it to Amazon for launching and building his own brand in the US market. “After 10 years of manufacturing and exporting to US retailers, we wanted to launch our own brand in US market, but it was so competitive that our efforts did not yield good results. Then we got on Amazon platform through Amazon Global Selling program. The continuous guidance and support of the team made sure we understood the long game and focused on quality and giving value to customer. It has also been instrumental in helping us become one of the bestsellers in our category. Another milestone for us has been the participation in various sale events in the US like Black Friday, Cyber Monday and Christmas and last year itself we saw a growth of 200 per cent”, he said.
Through various spike sale events on global marketplaces like Amazon.com, Amazon.co.uk, the e-commerce giant provides a lucrative platform for Indian sellers to engage with global customers. Whether it is Prime Day, Black Friday, and Cyber Monday or a specifically curated Diwali Bazaar, Indian sellers get good traction from customers abroad for their products. Amazon’s global selling team and third-party service providers are available to provide local enablement solutions to e-sellers – from tax specialists and logistics partners, to branding consultants to enable a smooth global transition.
ADB cuts India’s FY20 GDP growth forecast to 7% on fiscal shortfall worries
New Delhi: Asian Development Bank on Thursday lowered India’s GDP growth forecast to 7 per cent for the current year on the back of fiscal shortfall concerns.
“India is expected to grow by 7 per cent in 2019 (FY20) and 7.2 per cent in 2020 (FY21), slightly slower than projected in April because the fiscal 2018 outturn fell short,” ADB said in its supplement to the Asian Development Outlook 2019.
For the south Asian region, ADB said the outlook remains robust, with growth projected at 6.6 per cent in 2019 and 6.7 per cent in 2020.
Earlier in April this year too, the Manila-based multi-lateral funding agency had lowered India’s growth forecast for FY20 to 7.2 per cent from 7.6 per cent estimated previously due to moderation in global demand and likely shortfall in revenue on the domestic front.
Jalan panel proposes ‘nominal’ transfer of RBI funds to govt over 3-5 years
New Delhi: The Union government may not get the windfall gain it was expecting from the Reserve Bank of India (RBI) reserves as the Bimal Jalan committee, tasked with reviewing the central bank’s economic capital framework, has proposed a “nominal” transfer of surplus to the central government in a phased manner, according to a source in the know.
“The report has proposed a formula for a nominal transfer of a portion of the RBI’s reserves to the central government in a period of three-five years. This is in line with the current practice being followed by the RBI for transferring dividend annually,” a person close to the development said.
The person said the panel members might “not be unanimous” on the suggestions the committee made. These will be submitted to RBI Governor Shaktikanta Das “in a few days”. The RBI’s central board, headed by Das, will take up the matter.
The report would likely include a dissent note by Finance Secretary Subhash Chandra Garg, who is the government’s representative on the panel.
The committee has recommended a periodic review of the RBI’s economic capital framework, according to the source.
Initially, the finance ministry had expected around Rs 3 trillion from the RBI’s reserve funds, which were at the heart of a conflict between the regulator and the government last year.
On the insistence of the finance ministry, the central board of the RBI formed a six-member committee — headed by Jalan and co-chaired by former RBI deputy governor Rakesh Mohan — in December to review the central bank’s economic capital framework.
The main difference of opinion within the panel was over transferring the RBI’s “excess” capital reserves. While most panel members are in favour of a phased transfer of the RBI’s capital reserves to the government over the years, the government’s view, voiced by Garg, was for a one-time transfer.
For this financial year, the government had accounted for around Rs 20,000 crore as “additional dividend” from the RBI, a finance ministry official said. This, the official said, is unlikely to happen.
In the Receipts Budget, allocation towards the “dividend or surplus of RBI, nationalised banks and financial institutions” was increased by Rs 23,130 crore to Rs 1.06 trillion in 2019-20, compared to the Interim Budget.
Nod to bankruptcy code changes, will help home buyers
New Delhi: The government today gave its approval to seven amendments to the Insolvency and Bankruptcy Code (IBC), a move that will benefit unsecured creditors like home buyers in a big way.
Minister for Information and Broadcasting Prakash Javadekar said, the IBC (Amendment) Bill, 2019, would be introduced in Parliament during this session and will have retrospective effect. An official statement read: “The amendments aim to fill critical gaps in the corporate insolvency resolution framework as enshrined in the Code.”
of all financial creditors, including unsecured ones (home buyers) covered under Section 21 (6A) “shall be cast in accordance with the decision approved by the highest voting share (more than 50 per cent) of financial creditors on present and voting basis”, it said. It also said greater emphasis had been given “on the need for time-bound disposal at application stage and a deadline for completion of CSRP within an overall limit of 330 days, including litigation and other judicial processes”. Experts say this provision will help unsecured creditors (mostly home buyers) in a big way.