Page 43 - IACC Newsletter March 2013 Issue no. 9

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Steelcase opens manufacturing unit in India
Steelcase, a Michigan USA-based manufacturer of office furniture, has opened its first manufacturing facility in India.
Located in Chakan, the new plant will employ approximately 100 people.
Steelcase sees the plant as a vital step in enhancing the services and logistics it provides to its growing Indian customer
base.
Uli Gwinner, President, Steelcase Asia-Pacific, said: “We need to be where our customers are, so this is a critical long-
term investment for Steelcase.”
Jeff Ge, Vice-President of Operations, Asia-Pacific, added that the new plant will produce a range of Steelcase products
specifically for the Indian market.
“It signifies the importance that we place on servicing India, as part of our goal of strengthening Steelcase’s overall
presence in Asia,” he added. With the new plant, Steelcase aims to reduce delivery times and expand the range of
products available to customers in India.
eBay invests in Snapdeal
Picks up minority stake in Indian retailer
Snapdeal, a popular online retailer in India famous for offering discounts, has sold a minority stake to internet retailer
eBay. The biggest shopping site has paid the retailer an estimated $50 million for the deal.
While eBay has refused to offer any comments, sources and news reports say that the deal happened two months ago,
and along with eBay, Indo-US Venture Partners, Nexus Venture and Bessemer Venture Partners also chipped in. The deal
with eBay means that Snapdeal has raised almost $100 million. The same, Indo-US Venture Partners, Nexus Venture and
Bessemer Venture Partners also helped raise $40 million in 2012.
eBay’s move will enable it to make more headway in India, as currently, the retailer only has smaller merchants on its
profile. Snapdeal, on the other hand, is more popular and lists some major brands and service providers.
TechCrunch
reported,“Online e-commerce giant eBay last week said that it expects to have 12% of its sales coming from
BRIC countries by 2015 in an global e-commerce market that will be worth $300 billion, and here is one more step in
that strategy”. The report also said that though Snapdeal also got offers from Amazon and other retailers, it decided to
go with eBay because of its reputation.
The online retailing sector in India is growing by leaps and bounds, and the market grew to be valued at $14 billion in
2012, as against $6.3 billion in 2011.
Snapdeal said that it expects total sale of products traded on its platform to cross Rs 2,000 crore in the next fiscal. In a
PTI report, CEO Kunal Bahl said that the retailer has managed almost a 400% growth rate year-on-year.
Warburg Pincus buys stake in India's Avtec
U.S. private equity firm Warburg Pincus LLC WP.UL has bought a minority stake in Indian engineering equipment maker
Avtec Ltd, but the terms of the transaction were not disclosed. The investment will provide an exit to British investor
Actis and will be utilized to fund future growth of the company, Avtec said in a statement.
In 2005, Actis invested $17.8 million to buy a 30 percent stake in the company, promoted by diversified C.K. Birla Group.
Last week, Warburg Pincus sold its controlling stake in India's Alliance Tire Group to KKR & Co. LP
Ernst & Young advised Avtec and Actis in the transaction, the statement said.