See no fund shortage in e-commerce space: Anand Mahindra

Written By Unknown on Senin, 11 Agustus 2014 | 23.25

Speaking exclusively to CNBC-TV18's Farah Bookwala, Mahindra said that he believes his group will ride the e-commerce wave but only through small and caliberated steps.

E-commerce has huge potential in India given our infrastructural problems

Anand Mahindra

Chairman

Mahindra & Mahindra

There is a new buzzword that gets all top leaders of Corporate India excited--- it's e-commerce. After the Tatas, Anand Mahindra and M&M  is betting big on online retail. Speaking exclusively to CNBC-TV18's Farah Bookwala, Mahindra said that he believes his group will ride the e-commerce wave but only through small and caliberated steps. Mahindra is also upbeat about the defence sector after the government's decision to hike the foreign direct investment (FDI) cap to 49 percent.

Below is the transcript of Anand Mahindra's interview with CNBC-TV18.

Q: Your first thoughts…

A: Mahindra First Choice Wheels is already a leader in the e-commerce in the auto space. With Blue Book and E-Deck the auction platform we are going to really leverage that and make that grow. I dare say it is probably may be one of the first and the only e-commerce business making money in India today.

We have Mom & Me which is making its first steps in to getting into the e-commerce area and so we will support that as well. However these are differentiated plays.

Mahindra is not the kind of place where you go in and then you will raise billions of dollars and spend billions of dollars in advance of a business model being proven, that is who we are and I am upfront is saying that.

Q: Does it worry you that when a start-up like Flipkart shows the initial signs of innovation you have a huge pool of investors running behind them in a very frenzied manner drawing up funding for other innovations probably in the same area or in other sectors leading to a situation of hyper valuation. Does that situation acutely worry you?

A: Not at all. I don't think there is going to be any shortage of funds. The world has a huge liquidity overhang from many geographies. When India finally shows that it is going to get back on to the growth track and when there is an e-commerce revolution waiting to happen I assure you there is going to be no shortage of funds, there is going to be no drying up of funds for somebody else simply because one Flipkart raises money. Money is not going to be the problem at all.

Are there hyper valuations? I believe in the long run markets are rational. Initially there might be some overpricing but they are never wrong about looking at areas of promise. So, I believe they are right in this situation, e-commerce has huge potential over here particularly given our infrastructural problems. Consumers will find it easier to buy on the Net and so a boom awaits us especially when we get 4G next year. With that digital spine we are going to see a huge boom in e-commerce.

Q: You said that you would like to access global partners in defence as you go ahead but clearly global defence companies have made their stand very clear that even though the government has opened up the sector to 49 percent investment, it is not going to be enough. As a company who is looking to forge partnerships and they are not budging from their stand, what do you see happening now?

A: I don't see that as a uniform reaction. In fact there are many companies who have said they are quite comfortable with 49 percent and that is out in the media as well. If I am not wrong I read a report that BAE who were former partners of ours said that they are quite happy with 49 percent. So, there will be a mixed bag. There will be some who will feel that technology is so proprietary and is so hi-tech that they would like a higher percentage, I think the government has indicated that they will on a case by case permit that but I don't think it is a uniform reaction of all potential partners that they necessarily want 49 percent or more than 49 percent.

Also read: e-comm offers good potential for investments: Ratan Tata

M&M stock price

On August 11, 2014, Mahindra and Mahindra closed at Rs 1308.40, up Rs 79.30, or 6.45 percent. The 52-week high of the share was Rs 1322.30 and the 52-week low was Rs 741.50.


The company's trailing 12-month (TTM) EPS was at Rs 60.11 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 21.77. The latest book value of the company is Rs 272.84 per share. At current value, the price-to-book value of the company is 4.80.


Anda sedang membaca artikel tentang

See no fund shortage in e-commerce space: Anand Mahindra

Dengan url

http://gayafashionshow.blogspot.com/2014/08/see-no-fund-shortage-in-e-commerce.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

See no fund shortage in e-commerce space: Anand Mahindra

namun jangan lupa untuk meletakkan link

See no fund shortage in e-commerce space: Anand Mahindra

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger