This tells you about the major merger and acquisitions in E-commerce industry in India and its impact on Indian economy since 2010

1. Mergers and Acquisitions by
Indian companies in E-
commerce Industry and its
Impact on Indian Economy

2.  Grown by almost 35% from 3.8 billion in 2009 to an
estimated 12.6 billion in 2013
 The size of the e-retail industry is poised to be
10 to 20 billion USD by 2017-2020.
 Increased consumer-led purchases in durables and
electronics.

3.  A steep rise in the number of smartphone users.
 Increased internet access and the ever dropping rates
of internet surfing.
 Lack of time.
 Increased use of plastic money.
 A greater percentage of new users coming from Tier
II and Tier III cities.
Reasons for rise in e-commerce

4. Reasons for Mergers and
Acquisitions
• To limit competition
• Utilize under utilized market power
• In crease the value of combined enterprise
• Diversification
• Maximize firm’s value

5. MERGER AND
ACQUISITIONS
IN ECOMMERCE - eTourism

6. Ibibo-Redbus Acquisition
• Goibibo (one of the top 3 online travel aggregator in India) -
part of ibiboGroup owns India's No 1 online Bus ticketing
platform, redBus.in
• Redbus acquired by Ibibo at $100-120 million (Rs 598-712
crore at current rates)

7. Ibibo Journey – 2009 to 2014

8. Impact and effects of M&A in online travel
industry
• India’s travel and tourism industry is expected to grow by 7.3 per cent in
2014,
outperforming the general economy by 2.5 percentage points
- The World Travel and Tourism Council-annual economic impact report
• Convenience to the consumers
• Growing Economy
• Rise in income and employment
• Online Travel industry in India is growing faster than other non-travel
industries like E-tailing, financial services, classifieds and other services.
• Indian Internet companies can attract buyers from overseas
• Affirmation of the growing acceptance of Indian consumer Internet
companies globally.

9. Contd..
• Compounded Annual Growth Rate - 38% increase
from 2009 to 2014.
• Sales analysis:

11. Flipkart And Myntra

12. Overview

13. Win-Win Situation
Growing Apparels Sector
Logistic Advantage
Expansion For Flipkart
Fighting Competition

14. Impact Of The Merger
Message to Indian rupee investors
Open up multi brand FDI
Investors Activism
Employment
Forcing retailer to sell at low price
Balance of payment

15. FDI In Retail

16. Imports In Retail Sector

17. Some major Imports

19. IMPACT OF E- COMMERCE ON
THE INDIAN ECONOMY
 E-commerce – a proven
haven for India’s economic
growth.
 The e-commerce sector has
been growing at a breakneck
pace.
 Online travel, the current
major contributor to the b2c
segment’s sales.

20.  Online retail division to
continue to offer immense
scope.
 Sector enjoys larger revenue
contribution from tier i, ii and
iii cities.
 Anticipated growth in internet
accessibility backbone for the
Indian e-commerce landscape

21.  “On-the-go” shopping formula
need of the day.
 Indians becoming more aware
and embracing the idea of
shopping online.
 Numerous customized features
have been added to the
e-commerce sector.

22.  Sector has been
constantly attracting huge
investment.
 Government decision to
disallow FDI in
ecommerce to help
Indian e-commerce
firms.

23. Impact -
• Kirana Stores- Strong source of employment
• Apparel Sector- Acts as complimentary
• Travel Agents- 76% of all online transactions
are travel related
• Logistics Sector- Accounts for 15-20% of the
total revenue

24. Scope of E-Commerce in
India
• Comparison with other countries
China-220 Million, US- 150 Million, India- 137 Million ( 18% of population)
• Growing awareness amongst customers
• Opportunity to penetrate the market-
Tier 2, Tier 3 Cities
• Reduction in consumer’s search cost
No longer restricted to store hours
• Employment Opportunity
Estimated to create 1 million jobs by 2020

25. Bibliography :
• Indian Tourism (2011) Indian Tourism Statistics, [Online], Available:
http://tourism.gov.in/writereaddata/CMSPagePicture/file/Primary%20Content/MR/pub-OR-
statistics/2011statisticsenglish.pdf
• WTTC (2011) World Travel and Tourism Council, [Online], Available:
http://www.wttc.org/site_media/uploads/downloads/traveltourism2011.pdf
• MITI’s Proposal for WTO E-Commerce Initiative, “Towards eQuality: Global E- Commerce
Presents Digital Opportunity to Close the Divide Between Developed and Developing
Countries (2nd Draft)”, http://wwwmeti.go.jp
• Tactful Management Research Journal - MERGER AND ACQUISITION IN
E-COMMERCE SECTOR : Vol. 2 | Issue. 8 | May 2014 - ISSN :2319-7943

26. Thank You