The software solutions company is also ready to offer operating expenses based model for Indian retailers
Software solutions company MindTree Ltd, which has launched multi-channel software for retailers, has said it is ready to offer software solutions based on operating expenses model for Indian retailers. The new 24x7 software solution would cost around $1 million.
"We are aware of the spending capacity of Indian retailers so we are offering a lot of flexibility with our solutions. We are also looking to provide a demo solution to retail customers," said Babuji Abraham, vice president and head for retail industry group, MindTree.
The Indian retail industry, valued at about Rs400 billion, is likely to spend around Rs24 billion on retail technology service solutions, during the current financial year, according to industry analysts.
At present, many retailers are using technologies based on fixed monthly fees rather than buying the software or technology, rather than buying the technology as a one-time investment.
“Our solution will accelerate mobile shopping among Indian consumers. Smart phones have already grabbed the Indian market and through our technology, retailers can reach their target audience,” said Abraham.
The solution will help the retailers to reach out to specific target audiences by sending messages which contain specific product details and use appropriate marketing strategy. For example, if a retailer is running a promotional offer for teenagers in which you get a branded accessory free with a branded dress, the message will be sent to teenage female shoppers who are the perfect target audience for such offers.
The promotional massages sent to the customers will also have a uniform resource locator (URL) which will take the customers directly to the page where the details of the promotional offer is mentioned and even will identify the unique customer in any channel of purchase.
"Indian retailers are still not using such solutions because they are very costly and the domestic consumers are not yet into multi-channel buying," said Arun Gupta, group chief technology officer, Shoppers Stop Ltd.
Abraham said that besides offering a bouquet of multi-channel commerce solutions, MindTree also provides flexibility to retailers to opt for specific solutions based on the Internet or mobile module. This way the retailer can get the solution at lower cost compared with the complete bouquet, he added.
"Online shopping is slowly increasing in Indian middle class families and the solution will help retailers to manage their inventory better and at the same time satisfy online shoppers," said Abraham.
- Pallabika Ganguly [email protected]
As per the figures available on capacity addition for cement, cement units in the southern region will add the highest capacity in 2010 and 2011. India Cements, Dalmia Cement and Madras Cement are the key players in the southern region. All over India, 47.5 million tonne (MT) of cement capacity is expected to be added in 2010 and 19.2MT by 2011. Out of this, the southern region is expected to add around 20MT in the year 2010. For the year 2011, the highest capacity addition of 7.8MT will happen in the eastern region.
In the best case scenario assuming delay in capacity addition, the total capacity for the south is expected to grow by 26.9% from 66.1MT in FY09 to 83.9MT in FY10.
Industry watchers expect the cement demand for the south to be 56.6MT for 2010. This means a serious demand shortfall of 26.5MT. Similarly, the capacity for FY11 is expected to be 96.5MT and expected demand is 63.4MT, which again implies a serious demand shortfall of 33.1MT.
The cement industry in the southern region satisfies around 96% of its own consumption needs and routes the remaining produce primarily to the western region and marginally to the eastern region.
The capacity utilisation or operating rates for the cement industry in southern India too are not favourable. As per CRISIL Research reports, the operating rates for the cement industry all over India, is expected to fall from 88% in 2008-2009 to 77% to 2010–2011. The southern and northern regions are expected to suffer a steep fall in operating rates of below 75%.
Unless demand for cement goes up drastically, the southern region may be plagued by overcapacity for years. Around 45% of the total capacity addition in the next five years is expected to happen in the southern region.
Stock prices for Dalmia Cement witnessed a gain of 44% at a current price of Rs184.55, India Cement recorded a gain of 3% at current price of Rs134.50. Madras cement witnessed a gain of 19% at the current price of Rs121.20 over the past three months. In the same period, the Moneylife Cement Index went up by 14%.
–Amritha Pillay [email protected]