Gemini?HiTech PTE Ltd, a Singapore-based PC and IT accessories and services company, is foraying into India. The company has filed an application with the Foreign Investment Promotion Board (FIPB) for operating in the cash-and-carry format by acquiring controlling stake in an Indian distribution company.
Gemini HiTech Singapore has proposed acquiring 76% stake in Gemini Hitech Distribution India Pvt Ltd, which, presently is a vendor of PC and IT accessories, gizmos and devices of converging technologies to a host of retail companies including Spencers’ Retail, Shoppers Stop, and Landmark. It is also negotiating with Tata’s Croma Store and Reliance Digital.?
The $7 million Gemini Hitech PTE Ltd is hoping to tap the booming retail chains market in the country. Given the fast-paced growth of retail market in India, it is expecting a revenue growth of more than 100% on a yearly basis. Gemini Hitech Singapore has business clients across the world.
In the retail market, the consumer durables and IT (CDIT) segment is the third-most attractive segment witnessing a double-digit growth. The CDIT market in India is worth $100,000 billion, though the organised market is only a fraction of this, leaving huge scope for the organised trade to grow. The share of organised retail is pegged at only 3% of the total market.
Among the organised players, Tata?s JV with Australian major Woolworth and Reliance Retail?s Reliance Digital stores have the biggest roll out plans till date.
The world?s largest CDIT retailer, the $30 billion US-based Best Buy, has also been surveying the Indian market. While the government had shown willingness on allowing FDI in multi-brand retail for certain speciality segments including the consumer durables and IT, it had to roll back its proposal due to strong opposition.