New Delhi, April 3
Over 1 million online retailers now comprise the market place in India with sales of almost Rs 63,000 crore in 2013.

Figures released by the Internet and Mobile Association of India (IAMAI) indicate robust growth in the online retail business in India, estimating the number of online retailers close to 1 million as of date.

A recent study by Crisil Research estimated that online retailing — both direct and through marketplaces — will become a Rs 50,000 crore industry by 2016, growing at a whopping 50-55% annually over the next three years. That would be over 30 times the size at the end of fiscal 2008.

In its report, the IAMAI said nearly 1 million large and small retailers make use of online marketplaces to reach out to their customers in India today. These online retailers represent a wide range of categories, including electronics, books, apparel, accessories, footwear and jewellery.

The presence of such a large number of online sellers testifies to the efficiencies, disintermediation, lower capital costs and deep outreach that online marketplace provides to the retailers, it added.

The association has estimated that online retail accounted for $12.6 billion (Rs 62,967 crore), showing a year-on-year compounded annual growth rate (CAGR) of 34% since 2009.

While technology platforms tend to be run from city centres, the bulk of logistical management such as storage, godowns and deliveries are being handled from tier 2 or tier 3 cities.

Trends indicate that apparel and fashion accessories make the majority of sales in the east and south, while jewellery, leather and consumer item sales are prominent in the north and western sectors.

Crisil said online retail segment has been growing like gangbusters in India, yet it remains a nascent portion of the overall e-commerce segment in India where the travel business dominates with about two-thirds share. But the equation is changing fast enough to pose a threat to brick-and-mortar retailers — not just of books, music and electronics, but also apparel and grocery.

Over the past 4-5 years, competition from online retailers such as Flipkart (in books, music and electronics) and Myntra and Jabong (in apparel) has hurt physical retailers, forcing many to also go online -even as their net store additions have declined, Crisil said.

Retailers are catering to niche segments. Craftsvilla, an online retailer of handicrafts, is now reaching 3 million customers globally in 50 countries with more than 3,000 sellers from across India selling 2 lakh products online.

New Delhi, April 3
It's bonanza time for air travellers, with Air India, IndiGo and GoAir today joining the latest war over air fares, launched by SpiceJet which had earned the wrath of DGCA for offering one rupee air fares two days ago.

Air India launched a short-term 'Monsoon Bonanza' scheme under which tickets on 40 select domestic sectors can be bought till Saturday for travel till September 30.

A spokesperson for the national carrier said the scheme covers 108 flights, including select domestic legs of international flights. The tickets under the scheme are priced at a flat rate of Rs 1,499 plus applicable taxes.

No-frill carrier IndiGo also announced discounted ticket prices on several sectors, provided they are booked at least 90 days before the travel date.

The discounted fares start at Rs 1,389 for a one-way ticket, the airline said in a letter to travel agents, adding these fares were available only on direct flights on IndiGo's network.

While the airline was silent about by when a passenger has to book a ticket to get these low fares, it said only a limited number of seats were being offered under the scheme and travel has to be between July one and September 30.

Travel agents, requesting anonymity, said Rs 1,389 price was the lowest on IndiGo's network and valid for a one-way travel between Delhi and Lucknow. A Delhi-Mumbai ticket can be bought for a little over Rs 2,400.

The actual fare would be more as a flyer would also have to pay for passenger service fee, User Development Fee and other taxes, they said. — PTI

New Delhi, April 3
Private sector output in India fell in March, after a fractional increase in the previous month amid moderation in domestic demand conditions, an HSBC survey said today.

The HSBC India Composite Output Index, which maps both services and manufacturing, declined from 50.3 in February to 48.9 in March, as manufacturing production growth eased and service sector activity fell at faster rate during the month.

Meanwhile, the HSBC services business activity index fell from 48.8 in February to 47.5 in March, remaining below the 50-level mark for the ninth successive month.

A PMI reading above 50 indicates growth while a lower reading means contraction.

The contraction in the services sector activity was largely on the back of softer domestic demand. New business received by Indian services companies decreased for the ninth month running in March.

According to the HSBC survey, the weaker client demand, which led to the latest drop in new work intakes, can be partly linked to the forthcoming elections, "Following some stabilisation in recent months, service sector activity weakened again in March led by softer domestic demand," HSBC chief economist for India & ASEAN, Leif Eskesen said.

However, Indian service providers were optimistic that activity would rise over the next 12 months as growth of new business, supported by improved economic conditions and new marketing initiatives, is expected to drive the expansion.

On price rise, the report said inflationary pressures in the Indian private sector softened during March, with both input costs and output prices rising at weaker rates. — PTI

New Delhi, April 3
Unitech Corporate Parks, a Unitech group firm listed in London, today said the company is in talks to sell its majority stake in 6 IT SEZ/Park projects in India being developed jointly with the realty major.

According to sources, the total value of these six assets could be in the Rs 8,000-10,000 crore range at present.

UCP has 60% stake in each of these projects while Unitech has the remaining. Unitech holds 13.7% stake in UCP, which had raised £360 million in 2006 to invest in Indian realty sector. — PTI

New Delhi, April 3
Indian Oil Corporation has introduced the sale of market-priced 5-kg Free Trade LPG (FTL) cylinders through kirana stores and supermarkets for the first time in India. The sale of 5-kg cylinders has been launched in Bangalore, Chennai, Gorakhpur, Lucknow and Aligarh, to begin with.

This initiative will make available LPG freely through easily approachable sales points and local corner stores such as kirana shops, retail stores and malls. It will benefit migratory population such as students, IT professionals, BPO employees and persons with odd duty timings. Customers can enroll for the scheme with ease and pick up cylinder refills from nearby shops at their convenience.

To begin with, sale of the 5-kg FTL cylinders has been launched from 11 kirana stores in five cities, and will be extended to 50 more cities in the near future. Under the scheme, at the time of first sale, the cost of the equipment (cylinder and pressure regulator), the cost of the product at the prevailing non-domestic 5-kg cylinder price and administrative charges will be payable.

The cost of a new 5-kg FTL cylinder with LPG will be approximately in the range of Rs 1,600 to Rs 1,700. At the time of subsequent refills, only the cost of the product will be payable while exchanging the empty cylinder for a filled one.

BRIEFLY

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