Ekart to launch courier service to take on DTDC Express, First Flight Courier and others
Ekart, Flipkart’s logistics unit, is set to launch a courier service that will take on the likes of DTDC Express and First Flight Courier, as it builds a consumer-facing vertical to complement its core supply-chain management business. The courier service will help bolster Ekart’s new positioning as an independent logistics powerhouse, with Flipkart recently deciding to hive off the unit to allow it to cater to other companies. Ekart’s clients now include Madura Garments as well as online retailers Jabong and Paytm. Ekart has aggressive plans for its courier service, with an aim to capture 5-10 per cent of the market in the first year. Ekart Courier, which pegs the size of the consumer-to-consumer courier market at Rs 2,200 crore, expects revenue of more than Rs 200 crore in the next one year, effectively squeezing out more revenue per delivery executive. “We expect this service will be as disruptive as Flipkart’s entry into the ecommerce space,” said Amitesh Jha, vice-president at Ekart. “The industry is still very unorganised. No one provides an end-to-end proposition that consumers want.” Ekart has plans also to enter the hyperlocal logistics market and has started piloting deliveries for restaurants in Bengaluru, according to two people aware of the company’s plans. Jha declined to comment on this. Ekart Courier will provide customers door-to-door pick-up of parcels in under 4 hours and delivery in two days. Customers can book the service online and get real-time tracking and SMS updates. Ekart will offer complimentary packaging. The pick-up service will be rolled out in Bengaluru next week and in 50 other cities by September. Ekart Courier will drop parcels at any of the 3,800 pincodes it directly reaches across the country. Jha did not disclose the pricing but said it will “be competitive to tier-1 courier players. We will be offering far more value for the same cost.” Experts tracking the logistics space say the courier market is highly competitive with thousands of regional and national players, which makes generating profits from the service a tough proposition. They pointed out that courier companies handle about two million shipments a day with networks of thousands of branches. Parcel sizes are typically less than half a kilogram, whereas ecommerce parcels are usually 1-2 kg. “Courier market is very pricesensitive. Typically, the yield players get in the courier market is Rs 15-25 per delivery. But for etailing-focused logistics players, the cost structure is way too high to address that market because they get around Rs 85 yield per delivery and are still not profitable,” said Manish Saigal, managing director at consulting firm Alvarez & Marsal. Jha said he is not worried about the competition and that he expects Ekart’s entry to expand the courier market and increase the number of packets delivered by each delivery executive. “Every additional item increases utilisation (of the executive),” he said. Ekart has about 15,000 delivery executives. For its core business-to-business logistics facility, Ekart is aggressively seeking external clients and 50 companies have expressed interest in its services, Jha said. “We will have six customers in ecommerce and four in the normal B2B business boarded by June,” he said. By next year, Ekart expects shipments from non-ecommerce businesses to contribute to half its revenue. The company handles deliveries for third-party online retailers under a new initiative called Fulfilled by Ekart. NewsletterA A Weston Richburg Womens Jersey
Shipping Ministry rescinds 6 more obsolete rules
The Shipping Ministry has notified the final rescinding of six rules under the Merchant Shipping Act, 1958. These rules are Merchant Shipping (Safety Convention Certificates) Rules,1975; Merchant Shipping (Radio Direction Finders) Rules, 1968; Merchant Shipping (Distress Messages and Navigational Warnings) Rules 1964; Merchant Shipping (Muster) Rules 1968; Merchant Shipping (Pilot Ladder) Rules 1967; Life-boatmen’s (Qualifications and Certificates) Rules 1963. Total 13 Earlier, seven obsolete rules were rescinded through a notification on November 17, 2015. With the latest order, the Ministry has so far rescinded 13 rules under the Merchant Shipping Act, 1958. Many of the old rules have become redundant and are causing delay. The context, purpose and objectives of the rules and regulations were studied and 13 were found obsolete. It was decided to rescind them in keeping with the government’s motto of minimum government, maximum governance. The officials expressed the hope that the new step would simplify the legislative framework governing merchant shipping sector and streamline the processes and procedures. ‘Not much difference’ However, shipping experts are of the view that the current move does not make any significant difference to the industry, but it should be supported so that DG Shipping will be encouraged to bring Indian maritime legislation up to international standards. There is need to strengthen the manpower at DG Shipping. The under-staffed agency, which is responsible for regulating the industry, is now more concerned with managing their workload, experts said, adding that recruitment of more surveyors would free up senior management to focus on regulations and modernisation. All maritime legislations such as Indian Ports Act, Major Port Trust Act and Merchant Shipping Act are outdated, they added. Bruce Bowen Jersey
How Sweden is relocating an entire city
Kiruna, the northernmost city in Sweden, is sinking. In fact, by 2050, most of its structures will have collapsed into the iron mines below it. So engineers have embarked upon an ambitious project to move Kiruna-along with its 20,000 residents-two miles to the east. A new documentary explains exactly how they plan to do it. Back in 2004, knowing the city was doomed to sink into the mines below (a process known as “deformation”), the state-owned mining company Luossavaara-Kiirunavaara AB held a splashy global design competition to find the best idea for moving the city. Architects at White Arkitekter AB won the competition for their plan Kiruna 4 Ever and broke ground on the new city in 2014. All of the residents will be completely moved within two decades. This Is Kiruna: How to Move a City is a delightful little film made by the Swedish government that focuses on the massive infrastructural effort required to relocate a city-and one above the Arctic Circle no less, where it’s very cold, covered in deep snow, and completely dark for some of the year. Only three historical structures will actually be moved-the rest will be “recycled” with their materials reclaimed for use in new construction. There’s also an explanation for how everyone gets re-housed. Luossavaara-Kiirunavaara AB is giving the owners of sinking properties a choice. It will either buy these homes at market value plus 25 percent or offer residents a brand-new home for free in a new part of town. (Renters will get subsidized rent to help them transition into what will likely be more expensive buildings.) Continuing to mine the valuable iron ore from below the old Kiruna will supposedly keep the city economically flush-although not everyone believes this will be the case. What’s most amazing to see in this film is how casual the residents are about the prospect of uprooting their lives. I feel like a similar plan in the United States would be a political disaster rife with protests and lawsuits. But I think this is largely a credit to the great care that Sweden has taken to make sure that Kiruna’s citizens are upgrading to a better urban experience. When I spoke with one of the firm’s principals two years ago, it was intriguing to hear how this was a chance to fix many of the existing city’s problems. Namely, it’s an opportunity to build a denser, more compact center, but it’s also about proving to residents that an improved city design can better meet their daily needs, says architect Mark Szulgit. “The biggest challenge is to move the minds of the people.” Logan Couture Jersey
Motorola says Moto G3, Moto G Turbo discounts on Flipkart unofficial
In a surprising move, Motorola today declared that the recent discounts on its Moto G3 and Moto G Turbo smartphones offered by Flipkart were unofficial. This comes after Motorola had reportedly slashed the prices of both the smartphones by Rs 1,000, ahead of its Moto G4 Plus launch on Tuesday. “This is with reference to the price reduction of Moto smartphones on Flipkart. We have not officially announced any discount on any of the Moto smartphones available on Flipkart. This has not been endorsed by the brand,” said Rachna Lather, marketing head, Motorola India in a statement. The current prices of Moto G3 and Moto G Turbo on Flipkart are Rs 9,999 and Rs 11,499. Interestingly, rival Amazon.in is also selling both the smarpthones for the same price. Flipkart is also offering exchange offers starting at as low as Rs 1,999 and Rs 2,499 for the 16GB storage variant of Moto G3 and Moto G Turbo respectively. Motorola has partnered exclusively with Amazon.in for its latest Moto G4 Plus smartphone. In September 2015, after 18-months of exclusive tie-up with Flipkart, Motorola had decided to start selling its devices on rival platforms such as Snapdeal and Amazon India. They also took the offline route with the business entering large-format stores such as Reliance Retail and Airtel-branded shops. The new Moto G4 Plus comes at a price tag of Rs 13,499 (16GB inbuilt storage+2GB RAM version), while the one with 32GB storage and 3GB RAM has been priced at 14,999. The Moto G4 Plus is the first Motorola smarpthone to feature a fingerprint sensor. Boyd Gordon Authentic Jersey
Apple, Reliance to enter long-term relationship; VoLTE iPhones on Reliance Jio Network on anvil
Apple CEO Tim Cook and a team of top Reliance Industries executives have agreed to forge a long-term relationship which includes supplying a couple of million VoLTE iPhones that will work on Reliance Jio’s upcoming 4G network as well as deploying an enterprise solution, developed by the Cupertino-headquartered company and IBM, for Reliance Retail. These decisions were taken at a lunch meeting which lasted for more than two hours at Mukesh Ambani’s residence, Antilia, in South Mumbai, said two senior executives aware of the development. While Ambani was not present as he was overseas, RIL was represented by his son Akash Ambani, his close friend and confidant Manoj Modi as well as by Sanjay Mashruwala and Pankaj Pawar. Mashruwala is the managing director of Reliance Jio. Pawar is a member of the core team of both Jio and Reliance Retail. The Reliance executives made a strong pitch about how Apple can play a big role in Jio’s growth and how bundling of iPhones with its data service will make a compelling proposition for consumers, boosting the penetration of iPhones in the country. Reliance is keen to sell these bundled iPhones through its own sales and distribution network covering 1.2 lakh retailers and ecommerce firms and hence wants to forge a direct sourcing relationship with Apple, the executives said. The executives added that Mashruwala also gave a presentation on the Reliance Jio network, how it will revolutionse mobile broadband in the country and how Apple can get involved. Cook, it is learnt, has given his in-principle nod to a strategic relationship with Jio. The Reliance team also expressed their interest to deploy enterprise retail solutions which Apple and IBM have jointly developed. Reliance Retail plans to give Apple devices like iPhones and iPads to its shop-floor employees to improve consumer experience. Apple and IBM have developed a suite of retail solutions for customer payment, boosting shop-floor service by offering customised solution for individual customers and also aiding retailers in product and inventory planning. Cook, on his part, made a pitch for potential deployment of Apple Pay, the mobile wallet and digital payment solution, in the Reliance Retail stores. The Reliance team has agreed to evaluate its deployment in its stores, the executives said. An email sent to Reliance did not elicit any response till late Wednesday evening. An Apple spokesperson said it was a private meeting and hence would not like to make any comment. Cook and the Apple team including country head Sanjay Kaul had gone to Antilia around 12:30-1pm. The Apple CEO was wearing a blue blazer, brown trousers and strikingly colourful striped socks. It is learnt that the Reliance team gave a memento to the Apple chief. Apparently, Cook and Ambanis have known each other for some time and the family members are believed to be big Apple fans. Riley Dixon Jersey
Government gives nod to proposals worth Rs 17,300 crore in electronics sector
The government has cleared 74 investment proposals worth Rs 17,300 crore in the electronics manufacturing sector. “Out of 195 proposals, entailing an investment worth Rs 1.21 lakh crore, we have approved 74 applications amounting to Rs 17,300 crore,” Ajay Kumar, additional secretary in the department of electronics and IT (DeitY), told ET. Kumar said 94 proposals are at different stages of approval while 27 investment proposals have been declined due to “lack of communication” between the department and the private firms which submitted them. “The government is giving tremendous importance to this (electronics) sector,” Kumar said, adding that the enthusiasm among private firms is such that some are even willing to diversify their business to include electronics. The Centre, through its ‘Make in India’ programme, aims to fuel domestic manufacturing of electronic products in order to cut imports to zero by 2020. It is in talks with various large companies which are eager to establish production units in the country . Chinese companies alone are expected to invest ‘Rs 13,400 crore to $2-3 billion (Rs 20,100 crore) in the Indian’ mobile manufacturing sector over the next two years. The National Policy on Electronics aims to attract Rs 6.5 lakh crore worth of investment and generate employment for 28 million individuals. It entails setting up of at least 200 electronic manufacturing clusters by 2020. The government is providing incentives to private firms to support capital expenditure, skill development, intellectual proprietary rights and exports. James Paxton Jersey
Alibaba breached takeover rules: HK regulator
Hong Kong’s securities regulator said on Wednesday that Chinese e-commerce giant Alibaba Group Holding Ltd breached takeover rules in the purchase of a healthcare firm in 2014 because it also bought a company owned by the brother of the healthcare firm’s vice chairman at “favourable terms”. Alibaba agreed to buy CITIC 21CN, now known as Alibaba Health Information Technology Ltd, for $170 million at the time. During the acquisition process, Alibaba also agreed to buy Hebei Huiyan Medical Technology Co from Chen Wen Xin, who was also a shareholder of CITIC 21CN and is the younger brother of the company’s vice chairman, Chen Xiao Ying. Hong Kong’s Takeovers and Mergers Panel, part of the Securities and Futures Commission (SFC), ruled that Alibaba’s purchase of Hebei Huiyan “constituted a special deal with favourable conditions which were not extended to all shareholders was a clear breach of the Takeovers Code,” according to the decision published on Wednesday. Alibaba has already said it will appeal the panel’s decision, which was unveiled last month without the full details. The company didn’t immediately reply to a Reuters request for comment on the SFC’s published decision. T. J. Carrie Womens Jersey
CAIT demands regulatory authority for online retailers
Alleging that e-commerce firms are openly flouting norms laid down under FDI, traders’ body CAIT today demanded formation of a Regulatory Authority for India’s online retail market. In a letter to Commerce Minister Nirmala Sitharaman, Confederation of All India Traders (CAIT) said: “e-commerce companies are openly flouting norms laid down under FDI in e-commerce policy of the government and in absence of any specified rules & regulations are grossly involved in deep discounts, predatory pricing, anti-competitive practices, tax avoidance etc”. A joint statement by CAIT National President B C Bhartia and its Secretary General Praveen Khandelwal said that although e-commerce has introduced significant choices for Indian consumers and customers, it has also given rise to many disputes by the consumers purchasing the products from e-commerce websites. “Since it is a promising business market in the future due to steep rise in internet connections and mobile connectivity, formation of a Regulatory Authority and specified Rules & Regulations are all the more required before the situation becomes more worsen. Already, the e commerce companies have vitiated the e commerce market to a great extent,” they said. The traders’ body further alleged that e-commerce websites are “not following Indian laws at all and are adopting unfair means to grow their business which is creating an uneven level playing field much to the disadvantage of brick & mortar shops resulting into diversion of their customers to e commerce market”. Khandelwal said that in response to a tweet made to DIPP on contravention of FDI guidelines by e-commerce companies, the DIPP on May 10 tweeted that it is responsible for formulation of FDI policy and violation of FDI policy is a part of FEMA which is administered by Reserve Bank and Enforcement Directorate is the enforcement agency. “Taking advantage of such provisions and loopholes, the e-commerce players have made e-commerce market a free play ground playing the game with their self set rules. Therefore, in order to create a structured and healthy e-commerce market in the country, formation of a Regulatory Authority and specified Rules & Regulations must be made by the Government-argued both leaders,” Khandelwal said. Rashod Hill Womens Jersey
Don’t transfer shares till next date: Delhi HC to Spicejet
Delhi High Court today directed Spicejet to not issue or transfer its shares to a third party till the next hearing of Sun Group Managing Director Kalanithi Maran’s plea for issuing him stock warrants in the airline as per a sale purchase agreement of 2015 which led to change in ownership of the carrier. “Till next date of hearing the respondent (Spicejet) is restrained from transferring the shares and issuance of the share,” Justice Manmohan Singh said. The court gave the interim order after senior advocate Kapil Sibal and Rajiv Nayar , appearing for Maran, claimed that he should be protected till the time warrants are not issued in his favour. Spicejet opposed it, saying the warrants can be issued only after approval has been received from Bombay Stock Exchange (BSE). The court, however, observed that some balance has to be struck between the parties. “You (Spicejet) do not transfer the share,” the court said and asked the carrier to file its reply on the decision taken by the BSE and Securities and Exchange Board of India (SEBI). Under the sale purchase agreement (SPA), Maran and his KAL Airways had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to its co-founder Ajay Singh. According to the SPA, Maran and KAL were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition has claimed. Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to Spicejet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution. Spicejet had earlier told the court that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran. It had also claimed that every penny has been utilised towards operations and discharge of liabilities. Reid Duke Authentic Jersey
Air India rolls out red carpet for corporates, leisure travellers
State-run Air India has begun rolling out special facilities for corporate fliers as it turns to this lucrative segment to shore up its sagging bottomline. “At Air India, the focus is on fliers now and on improving customer services to attract as many fliers as possible. Our focus is on providing special facilities for corporate fliers, as yields from corporate fliers are the maximum,” a senior executive of Air India said, requesting anonymity. According to the executive, the national carrier is offering corporate fliers services like helpdesk at key airports, lounge facility, improved on-time performance and a huge global network that is complemented by the Star Alliance’s global network. “We will be launching a lot of new flights to complete our connectivity between two key cities and further increase our connectivity to attract business fliers, who prefer a same day return,” the executive said, adding that company executives fly all year round, helping airlines fill seats even in the non-peak season. But it’s not just the corporate fliers who can look forward to more facilities. The executive quoted earlier said, “At the same time, we are also announcing a lot of offers for leisure travellers.” The airline claims a large number of leisure travellers come to them because they offer 25 kg of free luggage in the economy class of domestic flights. All other airlines offer 15 kg of free luggage for domestic class passengers. According to the executive, Air India is set to announce offers for honeymooning couples in a bid to push business class seats. The national carrier is also looking at increasing connections between smaller cities through its regional subsidiary — Alliance Air . “We have called a meeting of transport secretaries of all states on Thursday (May 19, 2016) to discuss connectivity within states. We will offer them flights if they provide us viability gap funding for the losses we make,” the executive said. Doug McDermott Jersey