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		<title>Growth pangs of India’s top container port</title>
		<link>http://chaindia.com/2013/05/17/growth-pangs-of-indias-top-container-port/</link>
		<comments>http://chaindia.com/2013/05/17/growth-pangs-of-indias-top-container-port/#comments</comments>
		<pubDate>Fri, 17 May 2013 10:31:38 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Logistics]]></category>
		<category><![CDATA[Mumbai]]></category>
		<category><![CDATA[Port]]></category>

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		<description><![CDATA[<p>For more than five years, nothing seems to have gone right for Jawaharlal Nehru (JN) port...</p><p>The post <a href="http://chaindia.com/2013/05/17/growth-pangs-of-indias-top-container-port/">Growth pangs of India’s top container port</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.livemint.com/Opinion/rUSPMWLxeAgN4ICpPtf61O/Growth-pangs-of-Indias-top-container-port.html" > Click here to view original web page at www.livemint.com</a><br /><div channel="BP Web,LiveMint" id="U191243041609boC"><p>For more than five years, nothing seems to have gone right for Jawaharlal Nehru (JN) port in its quest to more than double its capacity. There is no question that India&rsquo;s busiest container gateway, located in Nhava Sheva, near the country&rsquo;s financial capital of Mumbai, needs to allow more ships to dock, if it doesn&rsquo;t want to risk losing traffic to other ports in the region.</p><p>The Union government-controlled port, named after India&rsquo;s first prime minister, was forced to withdraw a so-called letter of award given to a private group in October last year for building a <span><span>Rs.</span></span>6,700 crore, 4.8 million standard container capacity terminal&mdash;billed as India&rsquo;s single biggest container loading facility by capacity and size.</p><p>The reason given by India&rsquo;s shipping ministry was this&mdash;that the consortium that had emerged the successful bidder in a public auction for the project didn&rsquo;t sign the concession agreement, which lists terms and conditions of the contract and puts the project on track.</p><p>A few days after withdrawing that award, the port awarded a smaller capacity container terminal to an overseas company in a public tender. Again, the concession agreement for this project is yet to be signed. The reason for this is that the site where the terminal and the storage yard are to be built is now populated with mangroves, thanks to the long delay in finalizing the tender resulting from litigation involving bidders. Local laws don&rsquo;t allow construction activities in mangrove areas for environmental reasons.</p><p>Meanwhile, the federal environment ministry recently extended the clearance granted to the project by five years because the previously granted approval was set to lapse in July. That extension may not have been granted had the ministry known about the mangroves.</p><p>The project cannot proceed without this issue being resolved. Consequently, the successful bidder is suffering for no fault of its own. The episode serves to illustrate the shoddy manner in which the port undertook the bidding process.</p><div id="U191243041609YdD"><p style="display:inline;">While the port grapples with this issue, the plan for re-tendering the bigger terminal is also not going anywhere. After the process collapsed last year, port chairman </p><span><a href="http://www.livemint.com/Search/Link/Keyword/L.%20Radhakrishnan">L. Radhakrishnan</a></span><p style="display:inline;"> had publicly announced that the project would be split into two and developed by two competing partners. The restructuring involves tweaking the alignment of the terminal and making certain changes to reduce cost and compress the time-frame for developing the project.</p></div><div id="U191243041609mUD"><p style="display:inline;">The terminal has been realigned in such a way that the amount of dredging required has been reduced. Secondly, the shifting of a liquid cargo jetty run by India&rsquo;s state-owned oil refiner </p><span><a href="http://www.livemint.com/Search/Link/Keyword/Bharat%20Petroleum%20Corp.%20Ltd">Bharat Petroleum Corp. Ltd</a></span><p style="display:inline;"> (BPCL) to a site 2 km away can be avoided. Such a move would have added to the execution time and the risk factors. Avoiding this will mean a cost saving of at least </p><span><span>Rs.</span></span><p style="display:inline;">500 crore. In the earlier tender, the cost of re-locating the BPCL jetty was to have been borne by the private developer. The redesign also means avoiding a bend in berth, a further saving on cost and time.</p></div><p>Breaking the project into two will be advantageous to JN port, its chairman says. The entire capacity of 4.8 million standard containers can be created in less than four years, just half the time-frame of eight years envisaged earlier. The new plan will also lead to competition between two different terminal operators rather than creating a monopoly with one entity controlling the entire capacity of 4.8 million standard containers, which is 120% of the port&rsquo;s current capacity of 3.6 million standard containers.</p><p>But it&rsquo;s clear now that there is no clear point of view on the two-way split. The port&rsquo;s board of trustees met on 2 May to examine whether the project should be auctioned as a single project or two separate ones, the strongest indication yet that there is no clarity on the issue.</p><p>The deliberations at the meeting remained inconclusive. The board of trustees decided to wait for a technical report from the Central Water and Power Research Station, or CWPRS, a research and consultancy firm controlled by India&rsquo;s water resources ministry, ahead of taking a final call on the matter.</p><p>The proposal to split the project, strongly backed by chairman Radhakrishnan, may have no takers once he leaves office, which could be any time soon. Radhakrishnan is an Indian Administrative Service (IAS) officer who belongs to the Kerala state cadre. The southern state wants him back and has asked the central government that he be repatriated. This request is currently awaiting approval.</p><p>While splitting the project may attract a larger number of bidders, including smaller firms, and mean that bank loans will be more easily forthcoming, the move could face implementation issues. For instance, how would a variation in the bids for the two projects, which will be offered simultaneously, be resolved?</p><p>Meanwhile, an imminent policy shift should lead to greater bidder interest for an undivided project. In accordance with a new tariff guideline to be published shortly by the shipping ministry, a winning bidder would be free to set market-related tariffs. That marks a dramatic shift from the current regime, under which Union government owned ports price their services.</p><p>JN port needs to do much more than hasten its plan to seeks bids again for the terminal. It needs to invest in dredging the port and building rail-road corridors so that containers don&rsquo;t get stuck in interminable traffic jams and can be processed faster. And it should do this in the true spirit of public-private partnership (PPP) to improve investor sentiment. For instance, at the last auction, the private developer had to bear the entire cost of erecting the external infrastructure.</p><div id="U1912430416091zB"><p style="display:inline;">The only positive recent development is that JN port was able to award a </p><span><span>Rs.</span></span><p style="display:inline;">1,219.8 crore contract in August 2012 to Dutch firm </p><span><a href="http://www.livemint.com/Search/Link/Keyword/Boskalis%20International%20BV">Boskalis International BV</a></span><p style="display:inline;"> for deepening and widening the navigational channel to help larger ships to dock. The dredging work will be completed by August 2014.</p></div><p>India&rsquo;s top container port badly needs to increase capacity&mdash;and quickly. Any further delay will only add to the woes of exporters, who have been burdened with extra costs arising from congestion and delays at frequent intervals.</p><p>Besides this, the benefits of a deeper and wider navigational channel can only be fully realized if the bigger terminal is developed.</p><p><i>P. Manoj looks at trends in the shipping industry.</i>
</p></div>
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<p>The post <a href="http://chaindia.com/2013/05/17/growth-pangs-of-indias-top-container-port/">Growth pangs of India’s top container port</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></content:encoded>
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		<title>India to set up two new ports</title>
		<link>http://chaindia.com/2013/05/17/india-to-set-up-two-new-ports-world/</link>
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		<pubDate>Fri, 17 May 2013 10:29:06 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Logistics]]></category>
		<category><![CDATA[India]]></category>

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		<description><![CDATA[<p> The Indian government has cleared a major multi-million dollar infrastructural proposal to establish two major ports respectively in the east and the south.</p><p>The post <a href="http://chaindia.com/2013/05/17/india-to-set-up-two-new-ports-world/">India to set up two new ports</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.globaltimes.cn/content/780691.shtml" > Click here to view original web page at www.globaltimes.cn</a><br /><div><table border="0" cellpadding="5" cellspacing="0" width="650">
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    <td width="45%"> Xinhua | 2013-5-10 14:42:28 <br></br>By Agencies</td>
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	<span><a href="mailto:?subject=India to set up two new ports&body=Thought you might like this article from the Global Times website: http://www.globaltimes.cn/content/780691.shtml" rel="nofollow"><img alt="" border="0" src="http://www.globaltimes.cn/Portals/0/images/email.jpg"></img>&nbsp;E-mail</a>&nbsp;&nbsp;
	<a href="http://www.globaltimes.cn/DesktopModules/DnnForge%20-%20NewsArticles/Print.aspx?tabid=99&tabmoduleid=94&articleId=780691&moduleId=405&PortalID=0"></a><a href="http://www.globaltimes.cn/DesktopModules/DnnForge%20-%20NewsArticles/Print.aspx?tabid=99&tabmoduleid=94&articleId=780691&moduleId=405&PortalID=0" rel="nofollow" target="_blank" title="Click to print"><img src="http://www.globaltimes.cn/images/print.gif" title="Click to print"></img></a><a href="http://www.globaltimes.cn/DesktopModules/DnnForge%20-%20NewsArticles/Print.aspx?tabid=99&tabmoduleid=94&articleId=780691&moduleId=405&PortalID=0">Print</a> 
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</tbody></table><div><div><p>The Indian government has cleared a major multi-million dollar infrastructural proposal to establish two major ports respectively in the east and the south on a public- private partnership mode.</p><p>"The proposal for setting up two major ports in West Bengal and Andhra Pradesh has been cleared," Indian Information and Broadcasting Minister Manish Tewari told the media, after the approval by the Cabinet Committee on Economic Affairs at a meeting in the national capital late Thursday evening.</p><p>The port in West Bengal will have a capacity of 54 million tonnes per annum while that in Andhra Pradesh is to have a capacity of 50 million tonnes per annum, the Minister said.</p><p>India has currently got 12 major ports. The two new ports will help boost the local economy as well as generate jobs.</p></div><div><b> Posted in: <a href="http://www.globaltimes.cn/NEWS/tabid/99/articleType/CategoryView/categoryId/128/128.aspx">Central &amp; South Asia</a>  </b></div></div><br></br><br></br><p style="display:inline;">
 

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		<title>India&#8217;s Gati Sells 40 Percent of Shipping Business</title>
		<link>http://chaindia.com/2013/05/17/indias-gati-sells-40-percent-of-shipping-business/</link>
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		<pubDate>Fri, 17 May 2013 10:24:51 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Logistics]]></category>
		<category><![CDATA[Gati Ltd.]]></category>

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		<description><![CDATA[<p>Gati Ltd. has sold a 40 percent stake in its shipping subsidiary, Gati Ship Pvt. Ltd., to a strategic partner for Rs. 8 crore.</p><p>The post <a href="http://chaindia.com/2013/05/17/indias-gati-sells-40-percent-of-shipping-business/">India&#8217;s Gati Sells 40 Percent of Shipping Business</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
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			<h2>India's Gati Sells 40 Percent of Shipping Business</h2>
			<p><span><a href="http://feedproxy.google.com">Journal of Commerce</a> <em>Monday 13th May, 2013</em></span></p> 
			<p>Gati Ltd. has sold a 40 percent stake in its shipping subsidiary, Gati Ship Pvt. Ltd., to a strategic partner for Rs. 8 crore (about India&#8217;s Gati Sells 40 Percent of Shipping Business Journal of Commerce Monday 13th May, 2013 Gati Ltd. has sold a 40 percent stake in its shipping subsidiary, Gati Ship Pvt. Ltd., to a strategic partner for Rs. 8 crore (about $1.5 million).&#8221;The deal will help drive profitability,&#8221; the Hyderabad-based express distribution and supply chain solutions company said, without disclosing the name of the strategic partner.Gati Ship, which recently signed an agreement with Dubai-based International Shipping and Logistics FZE to jointly launch a coastal container service from Gujarat to Kerala, currently operates two cargo ships.Gati in February last year formed [...].5 million)."The deal will help drive profitability," the Hyderabad-based express distribution and supply chain solutions company said, without disclosing the name of the strategic partner.Gati Ship, which recently signed an agreement with Dubai-based International Shipping and Logistics FZE to jointly launch a coastal container service from Gujarat to Kerala, currently operates two cargo ships.Gati in February last year formed a joint venture with Japanese for...</p><p><a href="http://feedproxy.google.com/~r/joc/aajm/~3/uouB0QlxKWg/indias-gati-sells-40-percent-shipping-business_20130513.html"><em>Read more</em></a></p><em>
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		<title>Nissan India says warehouse fire will not affect supply</title>
		<link>http://chaindia.com/2013/05/17/nissan-india-says-warehouse-fire-will-not-affect-supply/</link>
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		<pubDate>Fri, 17 May 2013 10:19:52 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Manufacturing]]></category>
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		<description><![CDATA[<p>Nissan India has said that the fire that broke at one of the logistics companies that stores its supplies will not affect production. </p><p>The post <a href="http://chaindia.com/2013/05/17/nissan-india-says-warehouse-fire-will-not-affect-supply/">Nissan India says warehouse fire will not affect supply</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.carwale.com/news/10466-nissan-india-says-warehouse-fire-will-not-affect-supply.html" > Click here to view original web page at www.carwale.com</a><br /><div id="row_content"><div><div><div><ul><li>You are here: </li><li><a href="http://www.carwale.com">Home</a></li><li>&rsaquo; <a href="http://www.carwale.com/news/" title="Indian Car News">Car News</a></li><li>&rsaquo; <strong>Nissan India says warehouse fire will not affect supply</strong></li></ul><p>&nbsp;</p><div id="content"><div><div id="post-10466"><h2>Nissan India says warehouse fire will not affect supply</h2><p><abbr>5/10/2013 7:52:00 PM</abbr> by Venkat Desirazu</p><div><div><img alt="loading" border="0" src="http://img1.aeplcdn.com/ec/CE/CC/10466/img/m/Nissan-logo-Front-view-17006_l.jpg"></img></div><p>Nissan India has said that the fire that broke at one of the logistics companies that stores its supplies will not affect production. The fire had broken out on the night of May 10 at the warehouse of a company called Yusen logistics and has gutted most of the building. The warehouse stores spare parts and accessories for the Japanese automaker.&nbsp;</p><p>The company has issued a statement saying that they were finalising a contingency plan that would minimise any disruption to normal supply of after-sales vehicle parts but did not specify any further details about the incident. No persons were injured in the incident.&nbsp;</p><p>&nbsp;</p></div><p><span><fbU00003Acomments-count href="http://www.carwale.com/news/10466-nissan-india-says-warehouse-fire-will-not-affect-supply.html"></fbU00003Acomments-count> Comments</span></p></div></div></div></div></div></div><div id="copyright"><div></div></div><input id="hdnSrcUrl" type="hidden" value="/news/news.aspx"></input><input id="hdnUserAgent" type="hidden" value="Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.9.1.2) Gecko/20090729 Firefox/3.5.2 (.NET CLR 3.5.30729; Diffbot/0.1; +http://www.diffbot.com)"></input><input id="hdnClientIp" type="hidden" value="192.168.1.254"></input><input id="hdnCustomerId" type="hidden" value="-1"></input><input id="hdnSrcUrl" type="hidden" value="/news/news.aspx"></input><input id="hdnUserAgent" type="hidden" value="Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.9.1.2) Gecko/20090729 Firefox/3.5.2 (.NET CLR 3.5.30729; Diffbot/0.1; +http://www.diffbot.com)"></input><input id="hdnClientIp" type="hidden" value="192.168.1.254"></input><input id="hdnCustomerId" type="hidden" value="-1"></input></div>
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		<title>E-Commerce in India at Turning Point</title>
		<link>http://chaindia.com/2013/05/17/e-commerce-in-india-at-turning-point/</link>
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		<pubDate>Fri, 17 May 2013 10:18:49 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Retail/Distribution]]></category>
		<category><![CDATA[e-commerce websites]]></category>
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		<description><![CDATA[<p>A ripple of mergers and closures among India’s e-commerce websites that began last year is threatening to become a wave...</p><p>The post <a href="http://chaindia.com/2013/05/17/e-commerce-in-india-at-turning-point/">E-Commerce in India at Turning Point</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://blogs.wsj.com/indiarealtime/2013/05/15/e-commerce-in-india-at-turning-point/" > Click here to view original web page at blogs.wsj.com</a><br /><div><p>By Shailesh Chitnis</p><div><dl>
<dt><img alt="" height="369" src="http://s.wsj.net/public/resources/images/OB-XL689_isalma_G_20130514061504.jpg" width="553"></img></dt>
<dd>Agence France-Presse/Getty Images</dd>
<dd>Even Salman Khan picked up a stake in travel portal yatra.com. Shown, Salman Khan at a yatra.com press conference in Mumbai, April 2, 2012.</dd>
</dl></div><p>A ripple of mergers and closures among India&rsquo;s e-commerce websites that began last year is threatening to become a wave, as these companies find it harder to get fresh funding.</p><p>A slew of recent deals demonstrate this trend.</p><p>Last month, baby product-seller&nbsp;<a href="http://babyoye.com/" target="_blank">Babyoye.com</a>&nbsp;reportedly <a href="http://www.thehindubusinessline.com/industry-and-economy/info-tech/babyoyecom-merges-with-hooposcom/article4606712.ece">merged</a> with Bangalore-based&nbsp;<a href="http://hoopos.com/" target="_blank">Hoopos.com</a>, which also sells baby products.</p><p>In early March&nbsp;<a href="http://urbantouch.com/" target="_blank">Urbantouch.com</a>, an online fashion retailer for men, <a href="http://www.thehindu.com/business/Industry/fashion-and-you-shuts-down-etailer-urban-touch/article4478837.ece">was shuttered</a> less than a year after it was acquired by clothes retailer&nbsp;<a href="http://fashionandyou.com/" target="_blank">FashionandYou.com</a>.</p><p>Later that month, <a href="http://buytheprice.com/" target="_blank">Buytheprice.com</a>, a site connecting buyers and sellers, <a href="http://www.medianama.com/2013/03/223-tradus-buytheprice/">was bought</a> by&nbsp;<a href="http://tradus.com/" target="_blank">Tradus.com</a>, another site offering a similar service.</p><p>In February, fashion&nbsp;retailer&nbsp;<a href="http://zovi.com/">Zovi.com</a>&nbsp;<a href="http://blogs.wsj.com/dealjournalindia/2013/02/01/indian-online-retailer-zovi-buys-rival-inkfruit/">bought</a> local rival&nbsp;<a href="http://inkfruit.com/" target="_blank">Inkfruit.com</a>.</p><p>Most e-commerce sites don&rsquo;t share financial information publicly because they are not listed, but venture capital investors in such firms privately admit that many of these sites won&rsquo;t break even anytime soon.</p><p>These investors are now actively pushing for mergers in India&rsquo;s crowded online marketplace in the hope of saving on operating costs, thereby turning a profit faster.</p><p>But this is far from the scenario that investors and entrepreneurs had envisioned from India&rsquo;s e-commerce industry.</p><p>It seemed obvious that if even a small part of the country&rsquo;s 1.2 billion-strong population starts buying goods and services online, this industry would be gold.</p><p>McKinsey <a href="http://csi.mckinsey.com/Home/Knowledge_by_topic/Digital_consumer/Ecommerce_in_India.aspx">estimated</a> that by 2015, online retailers in India would have annual sales of up to  billion.</p><p>Lured by this promise, venture capital investors <a href="http://www.slideshare.net/viedea/vc-investments-in-indian-ecommerce">poured close to</a> 0 million into 50 e-commerce sites in the past three years. Many of the startups founded in India during this time were focused on e-commerce.</p><p>Even Bollywood stars rushed to get a piece of this. Megastar Salman Khan picked up a stake in travel portal&nbsp;<a href="http://yatra.com/" target="_blank">Yatra.com</a>, Karishma Kapoor <a href="http://www.rediff.com/movies/report/karisma-kapoor-turns-entrepreneur/20111209.htm">launched</a>&nbsp;<a href="http://babyoye.com/" target="_blank">Babyoye.com</a>, and actor Ajay Devgan invested in a movie ticketing website&nbsp;<a href="http://ticketplease.com/" target="_blank">ticketplease.com</a>.</p><p>Experts now say it will take much longer to achieve the gains of online retail in India.</p><p>Indians haven&rsquo;t taken to online shopping as widely as hoped. (Quick test &ndash; what percentage of your monthly spending is done online?).</p><p>People distrust using credit cards online, so retailers began offering a cash-on-delivery option. But this is an expensive proposition for the online retailer, who basically has to finance the sale till the order is delivered.&nbsp;&nbsp;Also, cash-on-delivery makes it easy for customers to reject products at the point of delivery. These manual interventions take away some of the efficiency gains of online selling.</p><p>There are also several obstacles on the supply side.</p><p>To overcome India&rsquo;s infrastructure challenges, online retailers often have to invest heavily in supply chain facilities. Companies that offer services linking buyers and sellers, such as travel sites, also need a strong sales team to build out a network of providers. Neither of these come cheap.</p><p>In addition, the target audience for online sites &ndash; young and affluent consumers &ndash; has lately been flooded with offline shopping options in the form of flourishing malls. The latter often wins, because a trip to the mall is more than just shopping; it&rsquo;s a form of entertainment.</p><p>To attract buyers, many e-commerce sites offered deep discounts on their products. But price wars are expensive and there isn&rsquo;t any evidence than customers attracted by low prices, will remain loyal once the retailer starts charging full price.</p><p>The example of Bangalore-based start-up,&nbsp;<a href="http://taggle.com/" target="_blank">Taggle.com</a>, offers a cautionary tale.</p><p>Taggle.com&nbsp;was launched in 2010 as a group buying site, much like Groupon, which showcases daily shopping deals.</p><p>It soon shifted its focus to online retail and found itself competing with dozens of other sites selling similar products, with the only difference being price.</p><p>When Taggle.com tried to compete on price, it quickly burned through its capital and the founders decided to shut the business in 2011, declaring the business model unsustainable.</p><p>Certainly, the future of online retail in India looks bright and the <a href="http://techcrunch.com/2013/04/01/ebay-builds-up-its-bric-strategy-leads-50m-investment-in-india-e-commerce-giant-snapdeal/">recent  million-investment</a>, led by <a href="http://online.wsj.com/public/quotes/main.html?type=djn&symbol=EBAY">eBay</a> <span data-ticker-name="EBAY" data-widget="dj.ticker"></span>, into Indian deals site&nbsp;<a href="http://snapdeal.com/" target="_blank">Snapdeal.com</a>&nbsp;is proof that many companies want a piece of this.</p><p>&ldquo;The Internet is projected to reach small towns and the low rungs of the economic ladder more quickly than retail chains will,&rdquo; according to a recent <a href="https://www.bcgperspectives.com/content/articles/center_consumer_customer_insight_globalization_from_buzz_to_bucks_capitalizing_indias_digitally_influenced_consumers/">report</a> by the Boston Consulting Group.</p><p>With just 10% of India&rsquo;s population accessing the Internet, there&rsquo;s plenty of growth ahead<strong>.</strong></p><p>But not just yet. It may be a few years (at the very least) before India gets certain basics in place, including more widespread confidence with using credit cards online.</p><p>Meanwhile, the <a href="http://www.slideshare.net/mukundmohan/indian-startups-starts-and-closure-research">false start of online retailing</a> has had one positive side effect: it has spawned a tribe of entrepreneurs who have got a taste for building their own companies. Chances are they&rsquo;ll take that experience into their next venture as seasoned founders.</p><p><em>Shailesh Chitnis works in the corporate strategy team for <a href="http://online.wsj.com/public/quotes/main.html?type=djn&symbol=CSCO">Cisco Systems</a> Inc. <span data-ticker-name="CSCO" data-widget="dj.ticker"></span> in Bangalore. The views expressed here are his own.</em></p><p><em>In the next part of this two-part series on India&rsquo;s startups, Mr. Chitnis will explore the kind of startups that he says do work.</em></p><p><em>Follow India Real Time on Twitter&nbsp;<a href="https://twitter.com/IndiaRealTime">@indiarealtime.</a></em></p></div>
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<p>The post <a href="http://chaindia.com/2013/05/17/e-commerce-in-india-at-turning-point/">E-Commerce in India at Turning Point</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></content:encoded>
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		<title>Tescos vegetable basket wins sourcing reprieve</title>
		<link>http://chaindia.com/2013/05/17/tesco%c2%92s-vegetable-basket-wins-sourcing-reprieve/</link>
		<comments>http://chaindia.com/2013/05/17/tesco%c2%92s-vegetable-basket-wins-sourcing-reprieve/#comments</comments>
		<pubDate>Fri, 17 May 2013 10:17:15 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Sourcing/Procurement]]></category>
		<category><![CDATA[India]]></category>
		<category><![CDATA[Tesco]]></category>

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		<description><![CDATA[<p>Sourcing norm to apply to only 15% of Tesco's product portfolio. </p><p>The post <a href="http://chaindia.com/2013/05/17/tesco%c2%92s-vegetable-basket-wins-sourcing-reprieve/">Tescos vegetable basket wins sourcing reprieve</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.indianexpress.com/news/tescos-vegetable-basket-wins-sourcing-reprieve/1116925/" > Click here to view original web page at www.indianexpress.com</a><br /><div><p><i>Sourcing norm to apply to only 15% of Tesco's product portfolio.</i>
</p><p>The world's third-largest retailer, UK's Tesco Plc, has managed to extract a major concession from the Indian government which could see it set up shop in India. The department of industrial policy and promotion (DIPP) has assured the retailer that the 30 per cent sourcing norm from Indian medium and small enterprises (MSMEs) would apply to only 15 per cent of its product portfolio if it were to open stores in the front-end segment. 
</p><p>DIPP officials said that since sourcing rules related only to "manufactured and processed products", it would not apply to Tesco. Tesco had pointed out to the ministry that 85 per cent of products it proposes to sell through its multi-brand retail outlets in India, would comprise fruits and vegetables or products made from these and would be sourced directly from farmers. The question of sourcing from MSMEs, therefore, did not arise, Tesco had explained. 
</p><p>"Tesco had asked if farm produce would be kept outside the ambit of this clause and we felt that unprocessed and dairy products should not be included. The clause will apply only to processed and manufactured products," a DIPP official said. Tesco set up an Indian subsidiary in December 2012 to buy fresh and processed foods from the country for its global stores. 
</p><p>Tesco's CEO Philip Clarke and  Noel Tata, MD, Tata International and vice-chairman, Trent had met commerce and industry minister Anand Sharma last week to seek clarification on whether the produce it acquired from farmers would qualify as a procurement from the MSME segment. Earlier in the week, Tesco's query on whether the minimum investment in back-end infrastructure, of 50 per cent, would apply to initial investment or cumulative investments was also answered by the government, which clarified that it related to only the first tranche of investment.
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		<title>Samsung to start manufacturing of Galaxy S4 in India soon</title>
		<link>http://chaindia.com/2013/05/08/samsung-to-start-manufacturing-of-galaxy-s4-in-india-soon-3/</link>
		<comments>http://chaindia.com/2013/05/08/samsung-to-start-manufacturing-of-galaxy-s4-in-india-soon-3/#comments</comments>
		<pubDate>Wed, 08 May 2013 08:47:48 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Manufacturing]]></category>
		<category><![CDATA[India]]></category>
		<category><![CDATA[Samsung]]></category>

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		<description><![CDATA[<p>The company currently imports the recently launched Galaxy S4 from South Korea.</p><p>The post <a href="http://chaindia.com/2013/05/08/samsung-to-start-manufacturing-of-galaxy-s4-in-india-soon-3/">Samsung to start manufacturing of Galaxy S4 in India soon</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://economictimes.indiatimes.com/tech/hardware/samsung-to-start-manufacturing-of-galaxy-s4-in-india-soon/articleshow/19765481.cms" > Click here to view original web page at economictimes.indiatimes.com</a><br /><div id="mod-a-body-after-first-para"><p> The company currently imports the recently launched Galaxy S4 from South Korea.</p><p> Sensing huge demand for Galaxy S4, the company is also looking to double up the high-end smartphone (above Rs 20,000) market size in India, which is currently contributing around 10-12 per cent of the overall smartphone market.</p><p> The Galaxy S4, which is packed with newer imaging features as well as 'gesture-control' technology, has a five-inch full HD super AMOLED touchscreen, 13 mega pixel rear and 2 mega pixel front camera and supports 3G networks.</p><p> Although Samsung is the market leader in smartphone market in India, competition from Apple, BlackBerry and Nokia has put pressure on it to add new software features to maintain its lead.</p><p> According to research firm IDC, the overall mobile phone market in India reached about 218 million units in 2012, growing 16 per cent year-on-year.</p><p> Of this, 16.3 million units were smartphones, but the category saw a growth of about 48 per cent. Samsung was the leader in the quadcore and 5-inch plus screen size models, <a href="http://economictimes.indiatimes.com/topic/IDC">IDC</a> added.</p><p> The demand for smartphones is expected to be around 34-36 million units this year.</p><p> Globally, Samsung had 30.3 per cent share of the smartphone market (with sales of 215.8 million units) in 2012, while Apple had a 19.1 per cent share with sales of 135.9 million units, according to IDC.</p></div>
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		<title>H&amp;M planning to open 50 stores in India</title>
		<link>http://chaindia.com/2013/05/08/swedish-retail-giant-h-and-m-planning-to-open-50-stores-in-india/</link>
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		<pubDate>Wed, 08 May 2013 08:45:11 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Retail/Distribution]]></category>
		<category><![CDATA[H&M]]></category>
		<category><![CDATA[India]]></category>

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		<description><![CDATA[<p>H&#038;M is planning to open 50 stores in India to tap the country's growing middle-class market</p><p>The post <a href="http://chaindia.com/2013/05/08/swedish-retail-giant-h-and-m-planning-to-open-50-stores-in-india/">H&#038;M planning to open 50 stores in India</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.aninews.in/newsdetail3/story109860/swedish-retail-giant-h-and-m-planning-to-open-50-stores-in-india.html" > Click here to view original web page at www.aninews.in</a><br /><div id="leftbodybox2"><div><div><p style="display:inline;">&nbsp;&nbsp;

</p><span>
May 1, 1:22 pm
</span></div><div><div><img border="0" src="http://www.aninews.in/contentimages/detail/shopping.jpg"></img><div><div><a href="http://www.aninews.in/all-newsstories/rss-feed.html">
<img border="0" height="16" src="http://www.aninews.in/images/rss1.png" width="16"></img></a></div></div></div><span> <p>New Delhi, May. 1 (<a href="http://www.aninews.in" target="_blank">ANI</a>): <a href="http://www.aninews.in/newsdetail3/story109860/../../newsdetail/keyword-search/swedish-fashion-retail-giant.html">
Swedish fashion retail giant </a> H and M is planning to open 50 stores in India to tap the country's growing middle-class market, according to an Indian government statement.</p><p>H and M is the second <a href="http://www.aninews.in/newsdetail3/story109860/../../newsdetail/keyword-search/swedish-chain.html">  Swedish chain</a> to seek entry into India after the government last year relaxed legislation to allow foreign retailers to set up shop in India and sell directly to Indian consumers to boost investment from abroad, reports New York Daily News.</p><p>H and M, one of the world's leading clothing retailers by sales, has applied to make a 131-million dollar investment and "will establish 50 stores", the Indian government said in a press release.</p><p>But H and M added in a statement that there "are no concrete plans" yet for when it would open its first stores in India.</p><p><a href="http://www.aninews.in/newsdetail3/story109860/../../newsdetail/keyword-search/indian-commerce-minister.html"> Indian Commerce Minister </a> <a href="http://www.aninews.in/newsdetail3/story109860/../../newsdetail/keyword-search/anand-sharma.html"> Anand Sharma
</a> said in New Delhi he welcomed the application by H and M. He said the government remains committed to a liberal economic reforms agenda, and added that foreign investment was "a source of technology, finance and means of creating gainful employment".</p><p>In February, <a href="http://www.aninews.in/newsdetail3/story109860/../../newsdetail/keyword-search/h-and-m.html"> H and M</a> which like many other European retailers is seeking to diversify from the crisis-hit euro zone, said it aimed to start "with a few stores" in India and would "expand heavily" if all went well. (<a href="http://www.aninews.in" target="_blank">ANI</a>)</p></span></div></div><div><span>  
<a href="http://www.aninews.in/newsdetail3/story109926/investment-of-over-usd-12-billion-planned-for-airports-ajit-singh.html">
Investment of over USD 12 billion planned for airports: Ajit Singh</a>
<span>
May 1, 3:53 pm</span>

</span><br></br><a href="http://www.aninews.in/newsdetail3/story109926/investment-of-over-usd-12-billion-planned-for-airports-ajit-singh.html">
  <img border="0" height="150" src="http://www.aninews.in/contentimages/portrate/
ajitsingh.jpg
" width="204"></img></a><div><p style="display:inline;">
Dubai, May 1 (</p><a href="http://www.aninews.in" target="_blank">ANI</a><p style="display:inline;">): Union Civil Aviation Minister Ajit Singh on Wednesday said recent initiatives and measures taken by the government, would give a boost to civil aviation in India. 
</p></div><span>
<a href="http://www.aninews.in/newsdetail3/story109926/investment-of-over-usd-12-billion-planned-for-airports-ajit-singh.html">Full Story </a> &raquo;</span></div><div><span>  
<a href="http://www.aninews.in/newsdetail3/story109921/yahoo-chief-to-include-baby-gifts-and-pups-in-employee-perks.html">
Yahoo chief to include baby gifts and pups in employee perks</a>
<span>
May 1, 3:20 pm</span>

</span><br></br><a href="http://www.aninews.in/newsdetail3/story109921/yahoo-chief-to-include-baby-gifts-and-pups-in-employee-perks.html">
  <img border="0" height="150" src="http://www.aninews.in/contentimages/portrate/
Marissa Mayer.jpg
" width="204"></img></a><div><p style="display:inline;">
Sydney, May 1 (</p><a href="http://www.aninews.in" target="_blank">ANI</a><p style="display:inline;">): Yahoo chief executive Marissa Mayer has proposed gifts for infants of its employees, besides puppies and kittens as perks to boost work morale.
</p></div><span>
<a href="http://www.aninews.in/newsdetail3/story109921/yahoo-chief-to-include-baby-gifts-and-pups-in-employee-perks.html">Full Story </a> &raquo;</span></div><div><span>  
<a href="http://www.aninews.in/newsdetail3/story109916/yahoo-chief-pockets-a-whopping-36-6-million-dollars-in-a-six-month-pay-packet.html">
Yahoo chief pockets a whopping 36.6 million dollars in a six-month pay packet</a>
<span>
May 1, 3:12 pm</span>

</span><br></br><a href="http://www.aninews.in/newsdetail3/story109916/yahoo-chief-pockets-a-whopping-36-6-million-dollars-in-a-six-month-pay-packet.html">
  <img border="0" height="150" src="http://www.aninews.in/contentimages/portrate/
Marissa Mayer.jpg
" width="204"></img></a><div><p style="display:inline;">
Sydney, May 1 (</p><a href="http://www.aninews.in" target="_blank">ANI</a><p style="display:inline;">): New Yahoo chief executive Marissa Mayer's compensation package totals more than 70 million dollars, including her basic pay, performance bonus and restricted stock, according to a regulatory filing with the U.S. Securities and Exchange Commission.
</p></div><span>
<a href="http://www.aninews.in/newsdetail3/story109916/yahoo-chief-pockets-a-whopping-36-6-million-dollars-in-a-six-month-pay-packet.html">Full Story </a> &raquo;</span></div><div><span>  
<a href="http://www.aninews.in/newsdetail3/story109867/hr-it-boost-needed-for-enforcement-directorate-to-deal-with-sophisticated-financial-crime-chidambaram.html">
HR, IT boost needed for Enforcement Directorate to deal with sophisticated financial crime: Chidambaram</a>
<span>
May 1, 1:22 pm</span>

</span><br></br><a href="http://www.aninews.in/newsdetail3/story109867/hr-it-boost-needed-for-enforcement-directorate-to-deal-with-sophisticated-financial-crime-chidambaram.html">
  <img border="0" height="150" src="http://www.aninews.in/contentimages/portrate/
pcchidambaram.jpg
" width="204"></img></a><div><p style="display:inline;">
New Delhi, May 1 (</p><a href="http://www.aninews.in" target="_blank">ANI</a><p style="display:inline;">): Finance Minister P. Chidambaram on Wednesday said there is a need to equip the Enforcement Directorate (ED) with more trained human resources and latest information technology to deal with the sophisticated crimes of money laundering. 
</p></div><span>
<a href="http://www.aninews.in/newsdetail3/story109867/hr-it-boost-needed-for-enforcement-directorate-to-deal-with-sophisticated-financial-crime-chidambaram.html">Full Story </a> &raquo;</span></div><div></div></div>
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		<title>CCEA paves way for IKEA&#8217;s Rs 10,500-crore investment plan in India</title>
		<link>http://chaindia.com/2013/05/08/ccea-paves-way-for-ikeas-rs-10500-crore-investment-plan-in-india/</link>
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		<pubDate>Wed, 08 May 2013 08:44:04 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Retail/Distribution]]></category>
		<category><![CDATA[IKEA]]></category>
		<category><![CDATA[India]]></category>

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		<description><![CDATA[<p>IKEA, which has already been sourcing products from India over the last 25 years, initially plans to set up 10 stores.</p><p>The post <a href="http://chaindia.com/2013/05/08/ccea-paves-way-for-ikeas-rs-10500-crore-investment-plan-in-india/">CCEA paves way for IKEA&#8217;s Rs 10,500-crore investment plan in India</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://economictimes.indiatimes.com/news/news-by-industry/services/retail/ccea-paves-way-for-ikeas-rs-10500-crore-investment-plan-in-india/articleshow/19847921.cms" > Click here to view original web page at economictimes.indiatimes.com</a><br /><div><span>NEW DELHI: The government on Thursday cleared Swedish home furnishing major IKEA's Rs 10,500-crore investment proposal, the biggest investment in single-brand retail sector after the government liberalised policy in November 2011.</span><p> IKEA, which has already been sourcing products from India over the last 25 years, initially plans to set up 10 furnishing and homeware stores over a period of ten years. Commerce and industry minister Anand Sharma called the decision a 'historic' one. </p><p> "This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global  <a href="http://economictimes.indiatimes.com/topic/value-chain" pg="asTopicL1">value chain</a>," he said in a statement after the cabinet committee on economic affairs (CCEA) cleared the proposal. </p><p> The proposal had already been cleared by the  <a href="http://economictimes.indiatimes.com/topic/foreign-investment-promotion-board" pg="asTopicL1">foreign investment promotion board</a> (FIPB) but since it involved investment of over Rs 1,200 crore it had to also be vetted by the CCEA. "The Cabinet Committee on Economic Affairs today gave its approval to the proposal of M/s.  <a href="http://economictimes.indiatimes.com/topic/Ingka-Holding-B.V." pg="asTopicL1">Ingka Holding B.V.</a>, Netherlands, as recommended by the Foreign Investment Promotion Board (FIPB)," government said in a statement. </p><p> Ingka is a IKEA Group company. </p><p> "We feel very welcome in India. This is a big step in our  <a href="http://economictimes.indiatimes.com/topic/journey" pg="asTopicL1">journey</a> to open IKEA stores in India. We feel very confident that the people of India will love to visit and to shop at IKEA,"  <a href="http://economictimes.indiatimes.com/topic/IKEA-India" pg="asTopicL1">IKEA India</a> Chief Executive Officer Juvencio Maeztu said in a statement. The company will offer "good quality home furnishing products and solutions at affordable prices," Maeztu added. </p><p> "This is a very positive development. Since many years already, India is an important market for the IKEA Group from a sourcing perspective," IKEA Group President and CEO Mikael Ohlsson said:. </p><p> Sources told ET that government has stuck to the condition that sourcing done by IKEA for its global operations cannot be counted towards the 30% mandatory sourcing under single brand retail policy. The department of industrial policy and promotion (DIPP) had in its note to the  <a href="http://economictimes.indiatimes.com/topic/CCEA" pg="asTopicL1">CCEA</a> said that IKEA must operate two separate entities in India - one for pure retailing and other for sourcing of products that to be sold only in India by the single brand retail firm. </p><p> Global retailers keen to set up fully owned ventures have been lobbying the government to consider their exports out of India for their global operations towards the 30% local sourcing under the policy. </p><p> However, IKEA has been allowed to run cafes and restaurants within its single brand stores in India, but it cannot sell packed food items. </p><p> Government had modified many clauses of the single-brand policy that it notified in January 2012 after IKEA raised concerns over sourcing and brand ownership issues. The original policy said that the mandatory 30% sourcing had to be from small and medium enterprises, which was later diluted at the instance of IKEA to preferably from small business. </p><p> IKEA had also expressed its reservations on the restrictions imposed by FIPB after it cleared the proposal in November 2012, forcing DIPP to move a modified proposal. The FIPB cleared the proposal a second time in January 2013. <meta content="cms.next" name="cmsei"></meta></p></div>
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		<title>TN to invest Rs 500-cr for warehouses</title>
		<link>http://chaindia.com/2013/05/08/tn-to-invest-rs-500-cr-for-warehouses/</link>
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		<pubDate>Wed, 08 May 2013 08:42:44 +0000</pubDate>
		<dc:creator>Editorial Team</dc:creator>
				<category><![CDATA[Logistics]]></category>
		<category><![CDATA[Warehouse]]></category>

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		<description><![CDATA[<p>Tamil Nadu chief minister J Jayalalithaa on Monday announced construction of 47 storage godowns across the state for agriculture produce at a cost of Rs 500 crore.</p><p>The post <a href="http://chaindia.com/2013/05/08/tn-to-invest-rs-500-cr-for-warehouses/">TN to invest Rs 500-cr for warehouses</a> appeared first on <a href="http://chaindia.com">CHAINDIA Magazine</a>.</p>]]></description>
				<content:encoded><![CDATA[<a href="http://www.business-standard.com/article/economy-policy/tn-to-invest-rs-500-cr-for-warehouses-113050600852_1.html" > Click here to view original web page at www.business-standard.com</a><br /><div><div><div><p>
Tamil Nadu chief minister J Jayalalithaa on Monday announced construction of 47 storage godowns across the state for agriculture produce&nbsp;at a cost of Rs 500 crore.</p><p>
With increase in state's agriculture production, and the growing demand for storage, these godowns with a capacity of 4,33,500 tonne will be set up with the modern facilities at 47 places, she said.</p><p>
Likewise, 15 storage godowns of 125,000 tonne capacity will be constructed through the Tamilnadu Warehouse Corporation. With this, the storage capacity of the Tamil Nadu Warehouse Corporation will increase from the present 633,000 to 758,000 tonne.</p><p>
Making a statement in the Assembly, she said two silos with 25,000 tonne capacity would come up at Erukkur modern rice mill. At least 1,044 storage godowns would be constructed in the current financial year through co-operative societies, at a cost of Rs 140.89 crore. The computerisation of logistics involved in transporting goods from godowns to fair price shops would be done at a cost of Rs 50 crore. The state has set up a committee for the purpose, led by the chief secretary.</p><p>
On the financial assistance being provided to agriculture co-operative loan societies, Jayalalithaa said Rs 50 lakh each would be given as cash credit facility to 72 societies under Phase-1.</p><p>
<b>Stemcell research</b><br></br>
The chief minister also announced that Tamilnadu Veterinary University would carry out stem cell research in association with Michigan State University, Virginia; Maryland Regional College of Veterinary Machine and Wakeforest Institute of Regenerative Medicine.</p><p>
She said a stemcell research centre for livestock would be set up in Tamilnadu Veterinary University at a cost of Rs 6.48 crore for the first time in India.</p><p>
A new medical procedure called regenerative medicine would be implemented in the state for the first time in the country, to prevent and protect livestock from various diseases.</p></div></div></div>
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