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India, UAE trade volume to reach $100 bn by 2020: CII

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Modi-and-crown-prince-of-abu-dhabiNew Delhi: The trade between India and UAE in terms of volume — currently at $60 billion — is expected to reach $100 billion by 2020 with increasing interest of Indian companies in the Middle East markets, a top industry body said on Wednesday.”The trade between India and UAE, which is estimated to be around $60 billion currently, is all set to grow and hit the $100 billion-mark by the year 2020 with the growing interest by the Indian companies in the Middle East markets,” the Confederation of Indian Industry (CII) said in a statement here.

About 50 Indian companies are participating in the Middle East Electricity Exhibition which opened on Wednesday in Dubai at the World Trade Centre displaying a wide variety of products ranging from cables to conductors, capacitors, transformers and switchgear products.CII, together with the Ministry of Commerce and Industry, has arranged to showcase Indian industry participation at the exhibition.Hosted by the UAE Ministry of Energy, it is the largest international trade event for the power industry, covering the generation, transmission and distribution of electricity, the renewable and nuclear energy sectors and the lighting industry.

“The initiatives taken by the government and the announcements made in the recent Budget shall certainly enhance industries’ competitiveness in the country and in particular the micro-small and medium enterprises (MSMEs),” the statement said.The step towards reducing the corporate tax rate for small companies will have a positive impact on the viability of around 67 lakh businesses in India. “As the MSMEs become more viable and sustainable, the overall attractiveness of the small businesses will increase leading to the growth of positive orientation and entrepreneurship in the country,” it said.

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Zomato acquires UberEats India for nearly Rs 2,500 crore

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New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.

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