Business News

• Online retail market to reach Rs. 7,000 cr.
• FDI in multi-brand retail-decision in July
•  Hero Scouts for technology partner

• Online retail market to reach Rs. 7,000 cr.

The market size of the online retail industry in India is likely to touch `7,000 crore by 2015 due to increasing Internet penetration across the country, a survey said. Currently, the online retail market is worth `2,000 crore and is growing at an annual rate of 35%, industry body Assocham said.

“India is set to become the third largest nation of Internet users in the next two years... Leading companies have gauged the potential of online retail industry and are gearing up fast to cash in,“ it said.

Of 5,000 shoppers who participated in the survey, around 40% said they prefer shopping online because of the convenience in doing so at any time and the ability to collect detailed product information.

• FDI in multi-brand retail-decision in July

A decision on allowing foreign direct investment (FDI) in multi-brand retail is likely to be taken before the monsoon session of Parliament, people close to the matter said on Sunday.

However, there will be tough riders for global retail chains launching their operations in India, they said, adding that these could include handholding small `kirana' shop owners, who fear being wiped out by global retailers.

To protect small traders, the ministry of consumer affairs is in agreement with the department of industrial policy and promotion that the foreign retailers will have to make 30% of sales revenue to the `kirana' shops, the people said.

They said the Committee of Secretaries, headed by cabinet secretary Ajit Kumar Seth, is expected to finalize the proposal for cabinet clearance.

·        Hero Scouts for technology partner

Following the exit of Japan's Honda Motor Co. Ltd, India's largest two wheeler maker Hero Honda Motors Ltd is intensifying its research and development (R&D) programme, scouting for technology partner across the globe, and also keeping open the option of acquiring firms.

The firm that has a licence agreement with Honda till 2014 said it will also be hiring “hundreds“ as it looks to develop its own technology.

“This (technology) is something which we are very excited about. This (going solo without Honda) is an opportunity to develop our own R&D,“ Hero Honda senior vice president (marketing and sales) Anil Dua said.

Dua said the company will be investing more as the company looks to build its technological prowess.