By: Pushpendra
Source: www.watblog.com/
Hiring of a prominent Landmark (retail chain) Executive, Madhu M has resulted in speculations that Amazon is entering India, the company has been testing Indian market since last four months. Madhu M, an IIM Ahmedabad graduate, batch of 2002 will head Amazon India’s operations.
A hiring specific tweet from company HR Kajal Gupta has added to the possibility of Amazon entering Indian shores. Amazon is also looking to hire a fulfillment manager specifically for Indian operations.
The current FDI (Foreign Direct Investment) regulation states that:
FDI up to 100% is permitted for E-commerce activities subject to the condition that such companies would divest 26% of their equity in favour of the Indian public in five years, if these companies are listed in other parts of the world. Such companies would engage only in business to business (B2B) E-commerce and not in retail trading. Therefore, quite possibly Amazon may either partner with a local player or follow Groupon’s way of acquiring a local player and enter the Indian market.
Incidentally, the grapevine has it that Amazon and Flipkart held talks last year over a possible acquisition. However, the overall proceedings were inconclusive; a very high buyout price quoted by Flipkart being considered as the main reason. Probably that’s when Flipkart decided to foray into all aspects of ecommerce and decided to expand, a move aimed towards creating a major consumer brand before Amazon enters India. Another rumor prevalent in Indian ecommerce space is Amazon acquiring Infibeam.
Leaving rumors aside, as of now, all we know is that Amazon will enter Indian market in another 6 months and is now busy building its India team.
Source: http://www.watblog.com/2011/06/28/is-amazon-entering-india/
Source: www.watblog.com/
Hiring of a prominent Landmark (retail chain) Executive, Madhu M has resulted in speculations that Amazon is entering India, the company has been testing Indian market since last four months. Madhu M, an IIM Ahmedabad graduate, batch of 2002 will head Amazon India’s operations.
A hiring specific tweet from company HR Kajal Gupta has added to the possibility of Amazon entering Indian shores. Amazon is also looking to hire a fulfillment manager specifically for Indian operations.
The current FDI (Foreign Direct Investment) regulation states that:
FDI up to 100% is permitted for E-commerce activities subject to the condition that such companies would divest 26% of their equity in favour of the Indian public in five years, if these companies are listed in other parts of the world. Such companies would engage only in business to business (B2B) E-commerce and not in retail trading. Therefore, quite possibly Amazon may either partner with a local player or follow Groupon’s way of acquiring a local player and enter the Indian market.
Incidentally, the grapevine has it that Amazon and Flipkart held talks last year over a possible acquisition. However, the overall proceedings were inconclusive; a very high buyout price quoted by Flipkart being considered as the main reason. Probably that’s when Flipkart decided to foray into all aspects of ecommerce and decided to expand, a move aimed towards creating a major consumer brand before Amazon enters India. Another rumor prevalent in Indian ecommerce space is Amazon acquiring Infibeam.
Leaving rumors aside, as of now, all we know is that Amazon will enter Indian market in another 6 months and is now busy building its India team.
Source: http://www.watblog.com/2011/06/28/is-amazon-entering-india/
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