Category Archives: Supplier

GIZ join hands with ESR to develop industrial & logistics assets in India

Singapore based GIC and ESR Cayman have entered into an 80:20 strategic partnership to establish a US$750 million joint venture to develop and acquire industrial and logistics assets in India. The JV will develop and own institutional-grade, state-of-the-art industrial and logistics facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities across India and will be seeded with a ~2.2 million sq. ft build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane. Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, says, “We are pleased to establish this Joint Venture with ESR, a leading integrated logistics platform, to develop and acquire high-quality industrial and logistics assets in prime locations in India. GIC has been investing in India for more than a decade, and this investment is a testament to our confidence in the long-term potential of this market.” Kishore Gotety, Co-Head (Asia ex-China) of Real Estate, GIC, states, “Continued e-commerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets. This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This JV is well-positioned to benefit from these tailwinds, bring institutional-grade assets into this market, and generate resilient returns.” “We are very excited to extend our partnership with GIC as it firmly demonstrates ESR’s capability and track record of developing best-in-class, strategically located industrial and logistics facilities in prime locations across India. This strategic partnership provides us with immediate scale to capitalise on the early growth stages of India’s rapidly modernising industrial and logistics landscape and tap high …

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UK-based PrimaDollar launches operations in India

After a successful pilot phase, PrimaDollar has officially launched its operations in India. With clients already in over 30 countries, the company provides low-cost trade finance to importers and exporters around the world from its headquarters in the UK and network of offices across South and East Asia. It has now opened offices in Mumbai, Delhi, Chennai and Bangalore. PrimaDollar is also now starting to partner with banks and logistics platforms to embed this new form of trade finance into their business models – allowing exporters to take finance as they ship their container, rather than having to make a separate call to their local bank in order to arrange separate working capital. The company solves the resulting cash flow gap for the exporter, paying the exporter upfront, taking the buyer credit risk and allowing the buyer to pay later. All of this is done at low cost, without requiring collateral and with simple and clear pricing. It’s unique trade finance products work shipment-by-shipment, without the need for complex multi-period financing agreements or IT integrations. Tim Nicolle, Founder & CEO, Prima Dollar, says, “Trade finance has traditionally been a time-consuming service, involving multiple banks and the many layers of complexity associated with letters of credit. On a global basis, the market is looking for a transactional solution that works shipment-by-shipment, without collateral and at a low cost. That’s what PrimaDollar has pioneered. For the Indian market, this is especially important as Indian exports are rising (by 7% in 2018) whilst bank finance for exports is falling (down 20% by 2018). All of this points to a major funding gap that PrimaDollar’s trade finance products exactly fit.” “After a successful pilot …

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Gxpress to launch Ecomgistics for small parcels, empowering small to medium sized businesses and entrepreneurs

With an aim to make the postage cheap and easy, Gxpress is all set to launch an operating system called Ecomgistics for e-commerce for small parcels in India, starting from 50 grams. The sellers also have an option to consolidate the small parcels in a single box and send to the desired location. Sellers will get the lowest shipping prices with free small parcel tracking, without sacrificing the quality of service. Its vision is to empower small to medium sized businesses and entrepreneurs so that they can really focus on their business instead of worrying about operational activities such as shipments, custom clearances and other challenges when are shipping internationally. Gxpress’ easy-to-use website will enable them to book a pickup, estimate cost, and track their packages and more. “The logistics industry has been completely standstill since the start of the beginning of the unprecedented crisis of Covid-19 and lockdowns, ensuring that the supply chains remain intact. Due to the shortage of labour and the restrictions being imposed on the movement of goods and businesses, the supply chain has been disrupted in the past six months. Now, as the businesses started opening, we have planned to launch Ecomgistics for small businesses because we at Gxpress understand the obstacles faced by companies especially when they have to ship small parcels from India but cannot due to high shipping costs. We will focus on empowering small to medium sized businesses and entrepreneurs in the growth of their customers by giving them the option to consolidate the small parcels in a single box and send to the desired location” said Praveen Vashistha, Founder & Director of Gxpress. Gxpress has a mission to build the …

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Finance Minister announces Rs. 3000 crore for EXIM Bank to promote exports from India

Nirmala Sitharaman, Finance Minister, Government of India has made 12 announcements under the Atmanirbhar Bharat 3.0 with a stimulus size of Rs 2.65 lakh crore or 15 per cent of the national Gross Domestic Product (GDP). In order to help EXIM Bank facilitates Lines of Credit development assistance activities and promote exports from India, Sitharaman says, “We will boost exports through an additional Rs 3,000 crore to be given to the Exim Bank of India, for promoting exports under Indian Development and Economic Assistance Scheme (IDEAS Scheme). This will help EXIM BAnk facilitate the Line of Credit development assistance activities.” When exports are mandated through it, most recipient countries get Indian firms executing projects such as railway lines, transmission lines and so on. US$ 10.5 billion are provided through the line of credit. As on date, 811 export contracts, aggregating US$ 10.50 billion are being financed under Line of Credits.

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FarEye rolls out enhancements to its contactless capabilities ahead of festive season

As per a recent report, the first week of the festive sale saw a 55 per cent y-o-y sales growth, with $4.1 billion worth of goods sold across e-commerce platforms, as compared to $2.7 billion last year. This 52 per cent increase makes the surge in online consumer demand quite evident. However, retailers need to be prepared to handle this surge. to handle the festive surge and enable retailers to meet the demand, FarEye has been working with leading retailers to roll out significant new features and enhancements to its platform. The platform will offer more flexibility to customers with self-service delivery slot booking, multiple payment options and deliveries at drop-off points. The platform will help retailers to offer quickly onboard new carriers to meet surge demand, achieve app-based onboarding and training of freelance drivers to fulfill orders. It will improve contactless delivery capabilities, including temperature tracking of drivers, integrations with national and international compliance apps and improve order-level visibility to customers through instant track & trace, messaging drivers, 1-click calling. The platform will also improve personalisation and customer lifetime value by showcasing more products based on customer behaviour and preferences and help in achieving comprehensive end-to-end visibility into the logistics operations and real-time customer feedback to take corrective action. “From the time we launched FarEye SERVE back in March to help retailers deliver essential goods; we have not just successfully helped retailers handle scalability challenges but also have made major breakthroughs in advanced contactless capabilities. These include driver temperature tracking, compliance apps integrations & more. Retailers can now focus on customer experience while they can worry less from scalability and orchestration woes, which the platform can handle for them,” …

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COVAXX and Maersk enter partnership to supply COVID-19 vaccines globally

COVAXX has announced a global logistics partnership with Maersk. The agreement lays out a framework for all transportation and supply chain services that will be needed to deliver COVAXX’s vaccine candidate UB-612 around the world, once approved by regulatory authorities. Financial terms of the agreement are not disclosed. COVAXX is developing UB-612 using a high precision, synthetic peptide platform to activate both B-cell and T-cell arms. The investigational vaccine is designed to mimic natural biology and preclinical studies have shown high immunogenicity and levels of neutralising titers against SARS-CoV-2. The technology platform has been successful in commercialising blood diagnostics as well as safe and effective vaccines for infectious disease in animal health and has been tested in numerous clinical trials for other indications to date. “The COVAXX vaccine is unique in that it can be stored in the fridge you have at home, moved in the same trucks that deliver groceries and administered anywhere you can get a flu shot.” – Lou Reese, Co-Chief Executive Officer of COVAXX. “Our team, which now proudly includes Maersk, is committed to addressing the needs of countries where the greatest unmet needs exist today,” said Mei Mei Hu, co-Chief Executive Officer of COVAXX. “To do what is in the best interests of society at this time of the global health crisis, we are aligning with the strongest leaders in their respective industries to meet the large-scale demand and compliance requirements that we expect. It is not enough to focus on vaccine development and approvals. We must work in parallel to establish the infrastructure and partners with the strongest capabilities, like Maersk, to safely deliver our vaccine around the world.” “Efficient and safe delivery of …

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Container availability, currently a challenge for export sector: President, FIEO

According to Sharad Kumar Saraf, President, FIEO, non-availability of containers for the export sector is posing a serious concern for meeting delivery commitments of foreign buyers. He said , “From the last couple of months, in spite of offering space for three to four weeks ahead, shipping lines are shutting out the containers abruptly giving reasons that the vessels are full. The sea freights have also started increasing gradually since July and all the shipping lines have increased the freights by 20 per cent to 40 per cent depending on the destinations. There is a need for a regulatory agency for the shipping sector and we expect that the proposed National Logistics Efficiency Advancement Predictability and Safety (NLEAPS) Act would be formulated and implemented soon to protect the exim sector from such sudden and abrupt changes.” Saraf further stated that exports have started picking up and our merchandise exports turned positive for the first time in the last seven months registering a growth of about 5.3 per cent in the month of September 2020. Therefore, this important component of export logistics needs immediate attention else our exporters would not be able to capitalize on the new opportunities. FIEO Chief also advocated that the government order to pay terminal handling charges to ports directly may be implemented across ports as it will bring down logistics costs for the export sector and make them more competitive.

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All wings of government should sit together to resolve technical & financial issues: President, FIEO

Elaborating the liquidity crunch being faced by exporters, S K Saraf, President, FIEO, says, “Despite the pandemic, Indian exporters have started receiving a lot of enquiries and orders from across the globe helping many sectors to show improved export performance, which is likely to get better in next few months. However, exporters, particularly from MSME sector, are facing huge liquidity challenges due to the stoppage of MEIS benefits of over Rs 10,000 crore from April 1, 2020 and IGST refund now. At this point of time when exporters are receiving new orders from new buyers and destinations, support needs to be given to help them to execute such orders.” Unfortunately, many of the exporters have expressed their inability to honour such orders, in view of liquidity challenges, due to stoppage of exports benefits and refund of GST. President, FIEO urged the Government to look into the issue as any letup in our export efforts, at this juncture, will cost us dearly while successful execution of these orders will bring additional export business from new and unexplored territories. All wings of the government should sit together, opined Mr Saraf, to resolve the technical and financial issues, helping the seamless flow of liquidity to exports sector. President, FIEO also said that banks are helping eligible exporters with the Emergency Credit Line Guarantee Scheme but due to hold up of GST refund and MEIS, the exporters are forced to seek additional loans from banks and such additional requirement is now subject to very high interest rates. Banks need to consider this pragmatically and provide a competitive interest rate to the exports sector particularly as the deposit rates have come down substantially with the …

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FIEO urges the government to extend MEIS Scheme for exporters till March 31, 2021

The government has decided to cap export incentives under Merchandise Exports from India Scheme (MEIS) scheme at Rs 2 crore per exporter on outbound shipments made during September-December, 2020. Welcoming the decision, Sharad Kumar Saraf, President, FIEO said, “It will help in resolving the impasses, resulting in blockage of MEIS benefits from April 1, 2020 and would provide huge relief to majority of exporters and give them stable policy environment for exports. However, the sudden imposition of a cap of Rs 2 Crore per IEC on MEIS benefit of exports made during 01.09.2020 to 31.12..2020, is going to seriously affect exporters, whose numbers may not be very large, but their contribution to exports warrant a revisit to the imposition of cap. FIEO President said that the exports which will be made during September-December, 2020 are based on the orders, which have already been negotiated much earlier factoring the existing MEIS benefit. These benefits are part of the export competitiveness and therefore the sudden change will affect the exporters’ financially as buyers are not going to revise their prices upward.” FIEO expressed its concern over the financial outlay of Rs 5,000 Crore given for exports during September-December, 2020 with the condition that if claims exceed Rs 5,000 Crore, the ceiling may further be revised downwards. This will create huge uncertainty as those eligible for cap of Rs 2 crore will not be able to factor even such benefits in their exports. A clarity is also required whether any change in the MEIS rate will be notified for those who are not affected by the cap, if the amount of Rs 5,000 Crore is exhausted. FIEO also urged the government to extend …

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ICRA outlook on ports remains negative for FY 2021; despite signs of recovery

According to ICRA (formally known as Investment Information and Credit Rating Agency of India), the Indian port sector has witnessed sharp contraction during Q1 FY2021 due to the impact of Covid-19 pandemic and containment measures adopted by the Government. While, the Major Ports witnessed ~20 per cent decline in Q1 FY2021, the Non Major Ports declined by 24 per cent during the same period. However, in the month of July 2020, the rate of cargo decline decelerated with Major Ports witnessing Y-o-Y decline of 13% and Non Major ports witnessing sharper improvement with decline of just 4%. As per Ratings agency ICRA, the FY2021 outlook for the Port sector remains negative, although there are early signs of recovery as witnessed by trends in July, the sustainability remains to be seen. Regarding the developments, Sai Krishna, Assistant Vice President and Associate-Head, ICRA Ratings adds, “The contraction in Port cargo was driven by sharp fall in POL and coal volumes, due to decline in domestic demand and economic activity, while container segment was also impacted by subdued EXIM trade. With the easing of containment measures and improved demand for petroleum products and power, the POL and coal segment should witness recovery. However, the recovery in segments like containers may be more prolonged due to dependence on both domestic economic activity and global demand trends. ICRA reiterates its expectation that while general cargo throughput may witness ~6-8% contraction for full year 2020-21, the container segment may witness a decline of 12-15% during the same period.” The rating agency also notes that while some of the measures announced by the Ministry of Shipping (MOS), in the wake of Covid-19 pandemic to support various stakeholders, …

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