subject: Fast Moving Consumer Goods [print this page] Driven by the fast moving consumer goods (FMCG) and apparel segments, the Indian retail market which is currently estimated to be around US$ 350 billion is expected to witness growth by nine per cent annually touching US$ 521 billion by 2012. Bharti Retail President and Chief Operating Officer (COO), Vinod Sawhny, speaking during an industry event, said, "FMCG and apparel sectors contribute the maximum to the growth of the retail market in India." He added, "FMCG in particular has a huge potential to grow... and this will ensure a growth rate of nine per cent year-on-year for the retail sector, which is likely to touch US$ 521 billion by 2012."
Meanwhile, retail companies in India are seeing their margins from FMCG companies go up from 14-15 per cent to 17-19 per cent as they compete for shelf space with retailers private labels. Some FMCG companies say that as retailers acquire scale, they also deliver supply chain efficiency and organized scale. The Indian food market, which at US$ 182 billion accounts for about two thirds of the total Indian retail market, has seen the entry of Yum! Restaurants which announced it will invest up to US$ 150 million (about Rs 700 crore) in India where it will compete with companies in India such as Nirulas and Haldiram in the country's organized food and beverage retail sector.
In a recent development that is seen as the global emergence of the Indian FMCG sector, the consumer care and lighting division of Wipro announced its acquisition of the Yardley business in Asia, Middle East, Australasia and certain African markets for US$ 45.5 million from the United Kingdom-based Lornamead Group. Meanwhile the IT division of Wipro, Wipro Technologies, joined some large IT companies in India, including Tata Consulting Services (TCS) and Infosys, in beating estimates for the second quarter of the year 2009. IT companies in India are also seeing the return of big deals with HCL Technologies, Wipro, and Infosys bagging significant deals so far in 2009.
The companys information technology arm, Wipro Technologies, meanwhile saw its second quarter profits rise 19 per cent to Rs1,162 crore, beating analysts estimates. This increase in profits for the company come on the back of significant overseas deal wins and improved demand for services in the United States. Indian information technology companies, Infosys and TCS also posted strong second quarter results and forecast higher growth. In the sphere of (informational technology enabled services) ITeS, Infosys BPO has acquired the US company McCamish for an upfront consideration of US$38 million.
Indias top-ranking status in the field of basic research came in for mention at the India Eco Summit held recently, where the panelists discussed whether, and how, India could become an innovation hub in the near future, given Indias strengths in science and technology and research and development. The governments of Australia and India have launched a US$ 100 million collaboration project on science and technology including green technology to combat the challenges in water, energy, health and environment as a result of climate change.
