16th July 2021,Mumbai:

Reliance Retail buys controlling stake in 25-year-old 'Just Dial' search engine platform.

This foray helps Reliance decent into 'Local Search & Discovery Services Space' with the objective of sharpening its e-commerce play.

Reliance is the largest/ biggest retailer in the Indian market & is shaping its portfolio through spate of acquisitions (M&A), aggressive store expansion & openings.

The bigger underlying overarching strategy is to deepen its omni-channel capabilities by consistently building muscular power in the given landscape.

RIL M&A in recent times: Netmeds, Hamleys, Urban Ladder, Zivame

How it goes

Reliance Retail will acquire 25.33% stake via preferential allotment at Rs 1,022.25 a share, another 15.62% from Just Dial founder V S S Mani. It will later make an open offer for 26% as per Sebi rules

What value 'Just Dial' brings on the table

30 million listings of enterprises across Web, App & Voice platforms

Way forward

JD Founder, Mani to continue as CEO leading it thru next phase of growth.

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The deeper issue optically is thus,"Reliance gets ready & instant 'Access to Just Dials-Database of MSMEs' thereby integrating it with 'Jio Mart' & semblance is this pathway will help it to strengthen e-commerce business & create unfair competitive edge.

Watch: https://www.youtube.com/watch?v=rCLbzVnEg28

Read More:

Government extends tax rebate on ‘Apparel Exports’ till March 2024

Extension of RoSCTL scheme till 2024 for textiles exporters

South Indian Garments Manufacturers Association (Sigma) to launch an e-platform ‘Sigma E-market place’

Government extends date for consultative feedback on proposed e-commerce draft.

This is the outcome of repeated considerations expressed by lead e-tailers likes of Amazon, Flipkart & Tata Group, the central government has extended the deadline to July 21 for suggestions/ consultations on proposed adjustments for Indian e-commerce.

 

It may be recalled unique/ original timeline was July 6th and the draft was made public on June 21th,2021.

Sticky point:

Exhaustive changes been proposed are uncomforting to e-commerce Cos.

 Watch: https://www.youtube.com/watch?v=zX6wJrrFrTw

Industry chambers View:

CII, ASSOCHAM ,FICCI & IAMAI RAISE CONCERN AROUND 'RELATED-PARTY CLAUSE'.

Consumer affairs ministry: Draws attention that proposed rules deal with 'unfair' trade practices that hurts customers.

“The committee set up to look into the state of affairs comprehensively, therefore, recommended that course correction to mitigate questionable tactics including manipulation of algorithms, influential product reviews & transparent rating mechanism must be created so that the interest of consumer is not hurt or compromised at any cost.”

After clocking impressive record $95bn exports in Q1FY22 government is in buoyant mood of consolidating the run rate so as not to lose onto the sustainable gains.

Proactively commerce and industry minister Piyush Goyal recently exhorted Exporters community to set industry a target before them to achieve 400$ Bn. Echoing the same confidence new incumbent FIEO, President Dr A Sakthivel underlined the optimism that it's quite achievable.

Also there's a near unanimity on the issue that export should not be burdened by local taxes. The guiding principle remains is we should be exporting goods and services, not taxes...and nobody does it.

 

H'ble Union Minister Piyush Goyal maintains that the Indian economy is well on the path to recovery

 

 

Piyush Goyal, who already has bagged few ministers in Modi government holding portfolio of more than two ministries, finds himself reloaded with an additional charge & responsibility in July 7th Cabinet mega reshuffle.

The Commerce and Industry, and Food, Consumers Affairs and Civil Supplies Minister who is amongst most trusted hands in current government has now been asked to wear the hat of the Textile ministry too.

 

Timing is apt as Textile portfolio is supposedly going to complement his existing functions in the Commerce Ministry where country's exports and to build trade relations with countries across the globe takes primacy especially in the face of growing clamour for 'Make in India' theme in Post-Covid World.

Watch: https://www.youtube.com/watch?v=CrmBQ_EsWKw

TEXTILES INDUSTRY CREDENTIALS

• Job Creator: Textiles & Apparel industry employs around 55 million
• Textiles & apparel (T&A) industry contributes 2% to the GDP, 12% to export earnings & holds 5% of global T&A trade
• Technical Textiles: Growth Engine of Indian Textiles Sector
• Post Covid World has thrown a big opportunity for the online textile industry

General understanding is that Textiles should have a full-fledged minister

BREAKTHROUGH ANNOUNCEMENT for 2.5 crore retail, wholesale traders; to be brought under the MSME scope, turn beneficiary observes RBI, ANNOUNCES proudly Nitin Gadkari, Ministry of Micro, Small & Medium Enterprises (M/o MSME).

The move aims in a targeted manner that this inclusiveness shall help this uncovered trade segment get much needed benefit of priority sector lending under the Reserve Bank of India (RBI) notified guidelines. 

Precursor to MSME new notification: Govt revisited turnover limits last year.

Outcome: 

Centre accords much needed MSME status to retailers and wholesale traders. Getting term loans from MSME schemes besides conventional lenders a reality now.

As per Kumar Rajagopalan, CEO Retailers Association of India (RAI),"Move will help retail sector get formalised"

Traders' associations hailed the decision, said Praveen Khandelwal, secretary general, Confederation of All India Traders (CAIT).

Concern: 

“But, the concern is how broad based will the scope/ ambit be

              Or

Will this be covering those retailers, wholesaler & traders who already have access to banking finance and still be eligible & entitled to all the incremental benefits,”

Inclusiveness for Wholesalers & Retailers a Path 'Breaking Move'

Irony of the day is that rather than truly going green, certain brands are taking the green-washing route instead & get into unethical practices to be successful in a hurry. As sustainability becomes more & more important to consumers, brands must invest in authentic, genuine supply chain alignment and branch reform, to manage expectations & her perception. As getting into the required processes & practices such as Certifications can be quite expensive to get, so smaller brands are not always able to get into all that and prefer to bypass all this and indulge in malpractices.

The term ‘green-washing’ was coined by environmentalist Jay Westervelt in 1986

Green-washing in fashion space is on the rise and is quite rampant. Sustainable, eco-friendly, natural and green are commonly abused terms

Advisory: Need to question, How genuine are the product claims!

Watch: https://www.youtube.com/watch?v=5ZORa2Lfxck

On the back of the facts it is not inappropriate to tag,"The fast fashion industry has been a major culprit of this malpractice"