The Kolkata-based conglomerate said this will strengthen presence of ITC's FMCG products in the emerging distribution channel of vending machines. ITC has said it will complete the acquisition within 12 months in an all-cash deal. The size of the deal is Rs 7.5 crore which will be paid in four tranches over a period of 12 months.
The company’s overall offline business grew by 70 per cent during this year festive season as compared to same period last year. The smartphone business in brick-and-mortar stores grew by 70 per cent year-on-year and over 50 per cent month-on-month, while the offline TV business grew by over 400 per cent year-on-year.
“Motorola lost in the sales channel strategy,” said Counterpoint Technology Market Research associate director Tarun Pathak. “Realme gave a strong competition in the online segment, especially in sub $200 (Rs 14,000) segment where Motorola had its strength. Apart from this, their organisation restructuring also had an impact,” he said.
Galaxy M has been an online exclusive smartphone series, but Samsung has decided to take it offline as well, heeding to demand from offline retail lobbies for smartphone makers to curb launch of online exclusive models and offers since these hurt their business.
Flipkart and Amazon have communicated to Department for Promotion of Industry and Internal Trade (DPIIT) that they are investing big on creating warehouses and logistics network, technology and other such areas, while reiterating they are fully compliant with all laws and FDI norms for online marketplaces.
This comes against the backdrop of groups such as CAIT and AIMRA complaining to the govt about online deep discounting and alleging that ecommerce marketplaces violated FDI norms during the festive season. The govt wants to address the concerns of small retailers over online discounting and see how both sides can work together to their mutual benefit.
On a standalone basis, Oppo’s sales went up by 80% at Rs 21,524.6 crore, while Vivo grew by 54% at Rs 17,201.79 crore in 2018-19. BBK Electronics also owns OnePlus and Realme smartphone brands whose India sales for FY19 are still not available. BBK Electronics is still not making money in India with both Oppo and Vivo yet to breakeven.
The report said the company’s management indicated this in the second quarter earnings call with analysts on Wednesday.
While premium products like large screen televisions, frostfree refrigerators and fully automatic washing machines did sell in cities and large towns driven by plethora of consumer finance options and price cuts — sales of entry-level products which constitute the belly of the market — were a washout, several manufacturers said.
Analysts have attributed last fiscal's poor financial performance in India to slowing iPhone sales.
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