India Business & Trade recently caught up with Andrey Grechkin, CEO of Dalreftrans, a subsidiary of FESCO Transportation Group. The discussion revolves around Dalreftrans’ role in facilitating trade between India and Russia, particularly focusing on perishable cargo. Grechkin sheds light on Dalreftrans’ expertise in refrigerated container transport and their position as the leading reefer operator in Russia. He also highlights their commitment to end-to-end logistics and their plans for expansion in the Indian market. The interview delves into the future of India-Russia trade, exploring opportunities for balancing exports and potential products that can be explored for bilateral trade. India Business & Trade: What are the key business of Dalreftrans and what are the company’s areas of core competence? Andrey Grechkin: Dalreftrans is currently a part of FESCO Transportation Group. Fesco itself is the largest Russian container company, which provides a full set of integrated logistics services – inland, maritime, railways, tracking, container handling, operations in ports and so on. Coming back to Dalreftrans, we are a reefer operator responsible for transportation of perishable cargo in reefer containers. As a shipping line, FESCO celebrated its 144th anniversary, and Dalreftrans is only 26 years old. But it’s understandable because reefer business itself has only been in existence for around 50-60 years globally. Currently, we are the biggest Russian operator of reefer containers, with around 5,000 physical containers in our fleet currently, a significant figure in terms of global volumes. We have about 45-50% of owned containers in Russia. Our activities in general fully cover all activities of the FESCO Transportation Group. We have intermodal services, maritime services, domestic transportation, etc. Our philosophy, is to provide end-to-end services and not just port-to-port transportation, in order to fulfill all expectations of our customers. India Business & Trade: How do you view the market growth trends in your business, i.e. perishable trade, from a global perspective? Andrey Grechkin: Interestingly while we do make projections, it is quite difficult to accurately assess the demand situation in a highly dynamic global market. All our budgets and plans are based on statistics in accordance with those expectation. But in the currently globalized, world, we find ourselves regularly opening new routes and increasing our geographical presence every year. We can try to predict our future development, but we are always answering the market and this is the most important thing for us. You should be able to support new requests even if you can’t predict them. So our strategy currently is expansion of services to countries like China, Japan and new countries. Our core business is transportation of goods between Russia and other countries, in-bound, out-bound, but all of our services are connected to Russia. So, we face huge changes in the market, from the COVID pandemic to geopolitical restrictions. While these developments are constraining us in some way, they are increasing our flexibility and reaction to new market options. So we develop our network. About two years ago, we opened Vietnam Direct Service to the Far East, firstly, then to Middle East to some extent, and then to the rest of the East. Then we’re moving further to develop a connection using Vietnam as a hub with other countries. We had some new customers, new volumes to us, new types of commodities. India Business & Trade: What is your current presence in the Indian market, and how do you project it growing in the coming years? Andrey Grechkin: India was the most logical country for us to diversify into and we entered the market last year. Our trade with India is much more significant than would seem on the surface. Consider some interesting facts in this context. Five roads could be built from Moscow to Delhi with tiles that we import from India. Three Taj Mahals could be built with the paper imported from Russia. With the tea imported from India, we could make 3 million barrels of tea. And conversely, over 100,000 tons of Dal Makhani could be prepared with lentils exported from Russia. Currently our share in the Indian market is about 16%, and we would like to increase it to around 30%. It seems like an optimistic and ambitious plan, but I am confident that we can reach these targets. Firstly, FESCO provides one of the very few, and I suppose the fastest direct services from India to Russia. We have two legs of the service – Novorossiysk, and another one to St. Petersburg. And now we are working towards the development of a direct service from Indian ports to the rest of Russia via Vladivostok, to cover all possible final destination points inside Russia. This is important, since our country is big and a majority of customers are not situated in locations close to the ports that I mentioned. A majority of them are inside the country at inland points. So we can provide integrated railway and sea logistics from and to India. You will observe the same situation in India. So for the near future, we have agreed with the agent to develop ICL points, and to use the Indian network of railways to cover all interior locations within the country. It helps us provide some additional value to customers and get closer to their warehouses to provide door-to-door services. So we expect and hope that these points, as I mentioned, will help us increase our share of the market. India Business & Trade: How do you view the outlook for India-Russia trade and what factors will drive its growth in the coming years? Andrey Grechkin: It is a very, very interesting question for us as well. We only try to predict it. Certainly, we can agree that all things on the surface are already taken care of. Oil and natural resources trade has increased. And currently, we are in a situation where we should find additional commodities to balance the trade. It is not a secret that Russian exports of natural resources to India are much bigger than vice versa. And we should balance that movement
Spellbound by heat wave: The Indian tea paradox
Adverse weather conditions, particularly high temperatures and insufficient rainfall have posed significant challenges for the tea industry in India. The industry has registered production declines owing to prolonged dry period and extremely high temperatures. This is compounded by pricing pressures in the market. Data released by Tea Board shows that during Jan-Mar 2024 shows that the output of tea in at an all-India level has decreased by more than 13 million kg. IBT analyses the impact of this shortfall and plausible future scenarios for the domestic market as well as for exports. Image source: Pexels The heat is on as mercuries rise across India, and it seems to be catching on to the tea sector as well. According to tea planters, the exceptionally prolonged period of dry weather without rain has adversely affected both production and quality of the premium *first flush teas, which reach the market in April-May period. The quantity of good first flush teas has reportedly been affected due to the extended dry spell. Extreme heat and inadequate rainfall in the Brahmaputra Valley in Assam and West Bengal have severely affected tea production in the regions. Furthermore, the heavy rain, thunderstorms, and hailstorms in the Barak Valley in Assam throughout April have also raised concerns among tea planters about the second flush teas and overall production. The dry weather and its impact Since the tea crop depends heavily on rainfall, insufficient precipitation during crucial months affects the yield of its premium first and second flushes. According to Indian Meteorological Department (IMD) data, the first quarter of this year has seen a rainfall deficit in the tea-growing areas of West Bengal and Assam, ranging from 2-76% below normal. Lack of sufficient rainfall and excessive temperatures have caused decline in tea production in Assam (-40% YoY) and West Bengal (23% YoY) according to Tea Board of India. Tea estates in Darjeeling have reported a decline of about 40-50% in first flush teas, which is the main source of revenue for the Darjeeling tea industry. In all, North India’s (Assam and West Bengal) tea production for January- March, 2024 has dropped by over 21 million kg, while all India tea production has decreased by more than 13 million kg. South India, on the other hand, has seen a production increase of nearly 8 million kg. Tea Association of India, citing data released by IMD from March 1-May 13, stated that significantly low average rainfall in February this year in the two major tea-growing states (i.e. Assam and West Bengal), when compared to the same period over the last six years, is hurting the tea industry. The crop loss at this point impacts the output in the months that follow as well as cash flows of the companies. Some experts predict that crop losses will rise to over 50% if sufficient and well- distributed rainfall is not received immediately. The table below shows estimated tea production in March 2024. Table: Estimated production of Tea for March 2024 (Qty. in million kgs) Region March 2024 March 2023 State/District BG SG Total BG SG Total Assam Valley 7.21 12.04 19.25 13.38 20 33.38 Cachar 1.31 0.02 1.33 0.64 0.02 0.66 Assam 8.52 12.06 20.58 14.02 20.02 34.04 Dooars 5.06 7.45 12.51 8.23 8.45 1 6.68 Terai 1.69 9.76 11.45 2.93 10.21 13.14 Darjeeling 0.09 0 0.09 0.17 0 0.17 West Bengal 6.84 17.21 24.05 11.33 18.66 29.99 Others 0.28 1.03 1.31 0.55 1.2 1.75 NORTH INDIA 15.64 30.3 45.94 25.9 39.88 65.78 Tamil Nadu 4.62 7.14 11.76 4 5.34 9.34 . 3.77 0.78 4.55 3.47 0.71 4.18 Karnataka 0.24 0.03 0.27 0.3 0.01 0.31 SOUTH INDIA 8.63 7.95 16.58 7.77 6.06 13.83 ALL INDIA 24.27 38.25 62.52 33.67 45.94 79.61 Source: Tea Board India; (BG-Big Growers, SG- Small Growers) At an all-India level, tea production for March 2024 is estimated at 62.52 million kg, down from 79.61 million kg in March 2023. Compounded challenges Tea industry is currently experiencing an unusual phenomenon of lower crop yields without a corresponding increase in tea prices. This contrasts sharply with the scenario in 2020, when a drop in production due to Covid closures caused an upsurge in tea prices. As per Tea Board data for January-March, tea prices in India have continued to decline across auction centers during 2024. Prices have plunged by over 16% between Jan-Mar, 2024, when compared to prices in the same period last year. The all-India average auction price from Jan-Mar 2024 stood at Rs 128.1 per kg, compared to Rs 144.21 per kg during the same period in 2023. In North India, average price was Rs 134.6 per kg (↓ by Rs 16.30), while in South India, the price was Rs 113.30 per kilogram (↓ by Rs 17.4). Average all India auction prices have declined by Rs 14.81 per kg for FY 2023-24. The weekly average auction price has been constantly decreasing by Rs.6 to Rs.33 in all sales starting this calendar year, though there has been a marginal improvement in the all-India auction average price for the last two sales. As demonstrated by their balance sheets, margins of many tea companies have shrunk sharply, thereby intensifying their financial stress. The state of affairs is especially severe in Darjeeling, where the industry’s viability is being threatened by low yields, declining prices, and competition from Nepal teas. According to sources, some foreign buyers of the Darjeeling tea are showing preference for Nepal tea over Darjeeling tea due to economical considerations. In addition, international demand for tea has remained low primarily due to the Ukraine war and ‘weak’ currency in some importing countries. Indian Tea Association (ITA) asserts that unless there is a financial relief plan, the Darjeeling tea industry’s survival is in jeopardy. And the silver lining… Despite there being seen a slight drop in tea production, some analysts are confident that availability of tea in the domestic market won’t be affected. According to noted tea industry expert Sujit Patra, “The March-April period is just an initial stage, when total production is very less.
Agriculture 2.0: Power of cloud technologies in modern farming
The agricultural sector, the backbone of the Indian economy, has shown remarkable resilience, significantly aiding the nation’s economic recovery despite challenges like the global health crisis and climate variability. With rising demands for food production and increasing exports cloud-based technologies could play a crucial role in boosting agricultural output and offering various solutions to farmers. This article explores how adoption of these solutions can support farmers and enhance the overall agricultural economy. Image Credit: Shutterstock Rising food demands have compelled farmers to develop new and efficient methods to boost output and efficiency. Consequently, agricultural technology, or agritech, has emerged as a solution for farmers to overcome various operational challenges. Despite the Government of India’s commitment to addressing the issues faced by farmers through various policies aimed at increasing production and exports, technological advancements and the digitization of Indian farms are crucial for realizing the sector’s full potential. According to an analysis by McKinsey, enhancing IT infrastructure and successfully implementing agricultural connectivity could contribute an additional US$ 500 billion to the global gross domestic product by 2030. This increase would represent a 7-9% boost over the projected total, significantly alleviating the current pressures on farmers. Furthermore, with advanced connectivity, the sector is expected to add US$ 2-3 trillion to the global GDP over the next decade. To mechanize, digitize and foster agriculture output, the Government of India took several steps: Introduced e-NAM (National Agriculture Market) in 2016 to facilitate online trading of 209 agriculture and horticulture commodities. Provided financial assistance at 100% of the drone cost and contingent expenditure for demonstrations on farmer’s fields. Created Agri Stack, a federated architecture for effective planning, monitoring, policy-making, strategy formulation and implementation of schemes. To elevate and propel the agriculture sector to new heights, it is essential to introduce and utilize cutting-edge technologies such as cloud computing, artificial intelligence, Big Data and machine learning to mechanize and simplify farming. Why cloud computing? Cloud computing is a modern IT model where users can access shared pools of customizable system resources via the internet. It’s evolving into a commercial infrastructure that removes the necessity of maintaining costly computing hardware, software, IT staff, and infrastructure, along with their upkeep. It enables users to access real-time computation, data, and storage without needing to concern themselves with the physical location or setup of the system providing these services. Cloud computing is playing a vital role in collecting, analyzing, and storing agricultural data. Wireless sensors connected to the cloud gather field data, which is then analyzed in real-time by machine learning algorithms, providing farmers with insights into crop performance. These sensors monitor soil moisture, pH levels, protein content, nutrient levels, and temperature, aiding in informed decision-making. As farming faces growing demands and numerous disruptive forces—such as land and input constraints, rising costs, and the need for enhanced sustainability and resilience—cloud-based solutions offer a promising way to tackle these challenges and enhance farm productivity. Emphasizing on the need to introduce cloud based solutions in farming, Krishna Kumar, Founder and CEO of Cropin says: “Sustainably increasing agricultural productivity is crucial for addressing global challenges in agriculture and food systems. Digital transformation will be a key enabler, enhancing rural economies, boosting food security, reducing poverty, mitigating greenhouse gas emissions, and curbing biodiversity loss. An intelligent agriculture cloud can provide revolutionary powers to each stakeholder in the Agri-ecosystem by providing multiple modern technologies such as earth observation sciences, data sciences, cloud/weather data, agronomical sciences and precision agriculture to improve food safety and production.” Below are some applications where cloud computing can significantly benefit farmers: Crop information: The system captures information related to all crops grown in the recent past, helping farmers make decisions on what to grow next. It can also store region specific weather information and forecast for specific durations, helping farmers make crop-related decisions. Low-cost access: Cloud solutions operate on a pay-per-use model, meaning farmers only pay for the resources they actually use. Soil Information: It provides trend of soil health in past which helps in predicting the trend in future. For instance, is the soil turning acidic/alkaline, or any other changes in composition of soil can be seen? Cloud Agro System: This system is utilized to monitor comprehensive agricultural information. The data stored in the cloud can be presented to farmers in their native language, aiding them in making informed decisions about crop production based on market demand and supply. Farmer’s Data: It can provide region-wise farmer data, monitor and study the involvement of local farmers. This can help in identifying core agricultural areas which are helpful for policymakers while framing their strategies. E-commerce: As farmers are unable to sell their produce directly to the market, through agricultural management information system of cloud computing, farmers can sell their produce directly to the end users or retailers. Today, India boasts several agritech companies that leverage technology to make farming more efficient and sustainable. These companies provide solutions to help farmers manage their crops, optimize yields, and improve profitability through innovative services like precision farming and farm management software. For instance, Absolute, a pioneering bioscience company, specializes in precision agriculture solutions utilizing phytology, microbiology, and AI technology. AgNext Technologies is another prominent agritech enterprise focusing on deep-tech-based food quality assessment, monitoring, and management solutions. DeHaat aims to empower farmers by offering a wide range of services such as quality agri-inputs, advisory services, market linkages, and financial products through a digital platform. Companies like Ninjacart have developed tech-driven platforms that connect farmers directly with retailers, eliminating intermediaries and ensuring fresh produce reaches the market at competitive prices. Cloud-based solutions offer cost-effective, real-time access to critical data and insights, empowering farmers to make informed decisions. By embracing these cutting-edge technologies, India can further enhance agricultural productivity, sustainability, and resilience, ensuring continued economic recovery and growth.
Fighting counterfeits with advanced packaging technologies
Counterfeiting in packaging industry is actually way more harmful to business prospects than most companies realise, with an estimated loss of US$ 4.5 trillion globally. This means that there is an untapped demand in the market that brands are not fulfilling today, as they are not aware of this demand being fulfilled through counterfeiters. By adopting a secure track-and-trace system, companies can better manage their operations and maintain a competitive edge in the global marketplace. In this edition of our ‘Tech Trailblazers’ episode series, we welcomed Kaushik Banerjee, co-founder and CEO of Noos Technologies, a company in the field of anti-counterfeit tamper evidence, warranty fraud detection, and tracking that uncovers the hidden cost of counterfeits in the supply chain with their packaging technology, provides an itemised view, helps companies protect their goods and allows customers to ascertain the difference. IBT: What inspired the establishment of Noos Technologies, and what core values does the company prioritise in its operations? Koushik Banerjee: We are focused on counterfeiting and anti-counterfeit efforts, but the global scale of counterfeiting and the lack of viable solutions make the issue interesting. Packaging has been a laggard in innovation, with only recent innovations in environmental and eco-friendly packaging. The security space is growing significantly, with a market worth around US$ 200 billion globally. This leaves a vacuum in the space where no solutions are available. Noos aims to fill this vacuum by helping brands adopt advanced packaging technology security solutions that fit into their manufacturing process and cost structure. Every brand has a different cost structure and process, and solutions should be viable for brands to protect consumers and brands. This is especially important for companies like Louis Vuitton, pharma companies, and FMCG companies, as they have different cost structures and processes. Noos’s goal is to provide a viable solution that fits into the manufacturing process and cost structure of their products, ensuring that products reach their target customers. This is crucial, as many companies face issues that prevent their products from reaching their target customers. IBT: Could you provide insights into the key objectives and strategic goals of Noos Technologies, particularly in terms of its role in transforming the transportation, logistics, and supply chain industries? Koushik Banerjee: So today, if you look at companies, which often measure their operational efficiency by analysing the utilisation rate of their factories or manufacturing facilities. This helps them determine if they are producing enough to meet the demand for their products, which is a key performance indicator for executives. However, there is a gap in understanding the actual demand due to counterfeiting, which results in a loss of US$ 4.5 trillion globally. This means that there is an untapped demand in the market that brands are not fulfilling today, as they are not aware of the demand being fulfilled through counterfeiters. To address this issue, brands can adopt a more secure track and trace system. Consumers authenticate or verify their purchases, letting the brand know that they are buying a product, whether it’s original or a duplicate. By tracing this back across the supply chain, companies can understand the unfulfilled demand and potentially increase their business. However, this approach may not always be 100% integrated, as every purchase or attempted purchase of a counterfeiting product is an unfulfilled demand that is not being met by the brand. News technology aims to provide a competitive edge to businesses worldwide by helping them understand their untapped market or demand. By implementing a secure track and trace system, companies can better understand demand and make informed decisions about their operations. This will help them stay ahead of their competitors and ensure that their products meet the needs of their customers. In conclusion, news technology plays a crucial role in providing businesses with a competitive edge by helping them understand and address an untapped market or demand. By adopting a secure track-and-trace system, companies can better manage their operations and maintain a competitive edge in the global marketplace. IBT: Noos Technologies aims to provide a competitive edge to businesses worldwide. How does the company differentiate itself from other players in the industry, particularly concerning innovation and technological solutions? Koushik Banerjee: When we explored the market for packaging technology security, we noticed a significant gap. On one end of the spectrum, there are simple and widely used solutions like holograms and QR codes. These are cheap and easy to implement, but they often become additive over time. For instance, you start with a hologram, then add a QR code when digital solutions become popular, and maybe even add a second hidden QR code when counterfeiting becomes an issue. This approach is common and cost-effective, but it is not foolproof. On the other extreme, we have highly secure, forensic-grade solutions used in currency, passports, and government documents. These provide top-notch security but are complex and require specialized knowledge or equipment to verify. Think about the security features in a currency note—many of these are not disclosed to the public to prevent counterfeiters from replicating them. However, this also means that ordinary people can’t always tell a real note from a fake one, and sometimes even bank staff need lab equipment to verify authenticity. At Noos, we wanted to bridge this gap. Instead of adding layer upon layer of security features or creating overly complex systems, we aimed to develop an advanced yet user-friendly solution. Our technology allows consumers to verify authenticity with just a smartphone scan, similar to how easy it is to make a UPI payment without knowing the backend details. We’ve even developed offline authentication solutions for regions with limited internet access, like Sub-Saharan Africa. Our goal is to provide a robust, ground-up security technology that’s easy to use and doesn’t require extensive education or special devices to verify. Brands get real-time data on scans, helping them track and protect their products globally without hassle. IBT: Given the dynamic nature of the transportation and logistics sectors, what are the primary challenges that Noos
India’s data centre capacity to cross 1,800 MW by 2026
India’s data centre (DC) industry has demonstrated remarkable growth, with its capacity doubling since the onset of the COVID-19 pandemic. According to a recent report by CBRE South Asia, titled ‘Asia Pacific Data Center Trends Q1 2024’, India’s data centre capacity is expected to surpass 1800 MW by 2026, positioning it above other major Asia-Pacific (APAC) countries. With its robust growth trajectory, significant investment inflows, and strong policy support, India’s data centre sector is well-positioned to continue its expansion and maintain its leading position in the APAC region. Image source: Shutterstock In 2023, India’s data centre added 255 MW of new supply, an increase from 200 MW in 2022, culminating in a total capacity of approximately 1,030 MW by the end of the year. A report by CBRE projects that India’s data centre capacity will see an addition of approximately 850 MW during the 2024-26 period, outpacing other significant APAC countries. By the end of 2024, planned supply increases of over 330 MW across various cities are anticipated to boost the total stock by 30% annually, reaching around 1,370 MW. India currently leads the APAC region (excluding China) with a data centre capacity of around 950 MW, surpassing prominent countries such as Japan, Australia, Singapore, Hong Kong SAR, and Korea. Specifically, Japan follows with 892 MW, Australia with 773 MW, Singapore with 718 MW, Hong Kong SAR with 613 MW, and South Korea with 531 MW. The sector has attracted significant investments from global operators, real estate developers, and private equity funds, securing more than US$ 40 billion from both global and domestic investors between 2018 and 2023. This influx of capital underscores the sector’s potential for high returns, making data centres one of the top three preferred alternative assets for investors in the APAC region, including India. Mumbai remains the dominant market, holding over 50% of the total stock in India as of 2023. The city’s reliable power supply, broadband connectivity, and skilled manpower make it a preferred destination. Chennai follows with an 18% share, benefiting from its strategic location on the east coast, which provides robust connectivity to East Asia. Over 60% of the upcoming supply is expected to be concentrated in Mumbai and Chennai. Delhi-NCR, Bangalore, and Hyderabad are anticipated to account for over 30% of the share collectively. Emerging markets such as Kochi, Jaipur, Ahmedabad, Lucknow, Patna, and Vishakhapatnam are also experiencing growth due to their strategic locations and enhanced infrastructure, including improved power supply and upgraded fibre and cable connectivity. Policy support and future outlook The Indian government has actively promoted the DC sector through dedicated policies aimed at attracting operators and investors. These policies include provisions for uninterrupted electricity supply, access to renewable energy, fuel subsidies, and essential infrastructure support for small and medium-sized enterprises (SMEs). Additionally, financial incentives and subsidies for manufacturing DC stacks within state jurisdictions are unlocking numerous investment opportunities. According to Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, “India, with its favourable market conditions, is attracting multinational corporations (MNCs) seeking to expand their digital services and relocate from other Asian markets due to supply constraints. Sustained demand is expected from BFSI firms, technology corporations, and cloud service providers as they explore alternative solutions such as colocation and hyperscale facilities. Furthermore, engineering & manufacturing firms, along with technology companies, are likely to establish their own DCs specifically dedicated to R&D labs.” With its robust growth trajectory, significant investment inflows, and strong policy support, India’s data centre sector is well-positioned to continue its expansion and maintain its leading position in the APAC region. The industry’s capacity is set to exceed 1800 MW by 2026, reflecting its critical role in the global digital infrastructure landscape.
Streamlining cross-border payments for Indian businesses
Indian businesses face a lot of challenges in cross-border payments, including high transaction fees, unfavourable exchange rates, complex payment processing, currency conversion issues, and compliance & regulatory hurdles. In this interaction with IBT under the Tech Trailblazers series, Ankit Parik, Country Head, Ping Pong, shares how the company’s cross border payment solutions address these challenges faced by companies in the international market. Image source: Pexels India Business & Trade: Ping Pong Payments has been enabling Indian businesses to scale globally since 2019 with its payment solutions. Could you elaborate on the journey that led to its establishment as a key player in the cross-border payment solutions industry? Ankit Pareek: We embarked on a global journey back in 2015, starting in the US, and later expanding to India in 2019. Today, we proudly have a presence in multiple countries, including the UK, Europe, Vietnam, South Korea, Hong Kong, China, Japan, Thailand, Singapore, and Indonesia. When we first entered the Indian market, we noticed that sellers were largely unaware of alternative payment methods that could help them save money. So initially, we faced a lot of challenges in educating merchants about the solution and the value that Ping Pong could bring. However, through perseverance and dedication, we have successfully grown our business over these years. I am thrilled to share that we have cumulatively served nearly 16,000 clients to date. And we continue to empower businesses with our innovative solutions. India Business & Trade: As a provider of cross-border payment solutions, what specific services does Ping Pong offer to Indian businesses looking to expand internationally? Ankit Pareek: In the past, cross-border sellers enjoyed healthy profits due to limited competition. However, competition has intensified, making it challenging for businesses to thrive. To support clients, we offer currency-specific virtual accounts that enable sellers to receive funds in local currencies, saving conversion costs. Our solution also offers faster, 100% compliant payment solutions, ensuring a hassle-free payment experience. We also offer free foreign inward remittance advice, helping clients close bank-received remittances (BRCs) at their banks. Clients share their Foreign Inward Remittance Request (FIRR) with us, which helps the bank close the entire VRC process. We also provide virtual credit cards for easy payments to global vendors, allowing them to use them on various platforms for vendor or supplier payments. In addition to product-level solutions, we offer loyalty programmes, providing international trips and goal vouchers based on payment volumes. This is designed to repay clients for showing loyalty to us. By leveraging our offerings, cross-border businesses can overcome competition and boost their profitability. We offer a variety of cross-border payment solutions for merchants to enjoy the ecosystem of payments designed specifically for them. India Business & Trade: What are some of the major challenges faced by Indian businesses when it comes to cross-border payments, and how does Ping Pong address these challenges through its tailored solutions? Ankit Pareek: Cross-border payments pose significant challenges for businesses, including high transaction fees, unfavourable exchange rates, complex payment processing, currency conversion issues, and compliance and regulatory hurdles. Merchants often face high transaction fees and unfavourable exchange rates when receiving international payments, leading to high costs for their payment partners. Complex payment processing involves multiple intermediaries, resulting in delays and confusion for end customers and clients. Merchants also face delays in receiving payments due to the involvement of multiple partners. Currency conversion issues can result in losses due to poor exchange rates, as many companies enjoy high FX margins. Payment security and risk are also core issues for cross-border transactions, with fraud and security breaches being key concerns. Indian businesses must navigate complex regulations and compliance requirements. Traditional payment mechanisms lack dedicated dashboards, making it difficult for them to reconcile or access payments. Ping Pong addresses these challenges through its tailor-made solutions. They provide comparative exchange rates and lower fees, reducing costs for Indian businesses. Clients can log into their dashboard to view real-time exchange rates, ensuring they receive the exact amount in their Indian bank account. Ping Pong’s platform simplifies and accelerates payment processing, reducing complexity and delays. Currency conversion optimisation is another key aspect of Ping Pong’s services. Currency-specific virtual accounts enable Indian businesses to receive payments in local currencies, minimising currency conversion losses. We implement robust security measures to protect transactions and prevent fraud. Their team assists Indian businesses in navigating regulatory requirements, ensuring compliance and peace of mind. Ping Pong supports dedicated account managers for all clients, regardless of their business size. This personal interaction allows clients to address any queries and resolve issues with their account managers. By implementing these solutions, Ping Pong empowers Indian businesses to overcome cross-border payment challenges and expand their global reach with confidence. India Business & Trade: Given the importance of regulatory compliance in the fintech sector, how does Ping Pong ensure adherence to relevant regulations and standards in India, and what are your perspectives on recent regulatory developments affecting cross-border payments? Ankit Pareek: We have operated under the OPGST licence until now, which allowed us to work with the banks to facilitate cross-border transactions for our customers. Recently, RBI has made changes and asked for everyone operating with different licences to come under its new one, including both bank and non-bank entities. So we will be compliant with these changes as well and strictly adhere to new guidelines. Even currently, we make sure that all customers and transactions we process are weighted through our system of carefully designed checks at each stage, starting with the ever-important KYC. We make sure that our standards of KYC are never compromised. India Business & Trade: Considering the rapid evolution of the fintech ecosystem in India, what role do you envision Ping Pong playing in shaping the future of cross-border payments within the country, and what are the key growth drivers for the industry? Ankit Pareek: Ping Pong is expected to play a significant role in shaping the future of cross-border payments in India by offering a competitive exchange rate, streamlined payment processing, currency conversion
Bringing predictability to a climate-vulnerable agri supply chain
India has witnessed a remarkable growth in agriculture technology, fueled by advancements in digital innovation and increasing adoption of smart farming practices. Integration of technologies like artificial intelligence, machine learning, and remote sensing has revolutionized farming techniques, enabling precision agriculture and predictive analytics. Cropin, founded in 2010, is a leading global provider of agricultural intelligence. It helps various stakeholders in agriculture, including financial service providers, to adopt digital strategies using advanced technology like artificial intelligence and remote sensing. Krishna Kumar, Founder and CEO, recently spoke with India Business and Trade about Cropin’s journey and vision to drive sustainability in agriculture at a time when climate change is deeply impacting agri supply chain. IBT: Cropin has significantly impacted various stakeholders in the agricultural sector. Could you elaborate on how your suite of products, powered by AI, ML, and remote sensing, facilitates this transformation across different stages of the agricultural value chain? Krishna Kumar: If you look at the idea of bringing data and intelligence powered by machine learning, AI, remote sensing, and knowledge graphs, it was to see how we can make every farm traceable, predictable, sustainable, and profitable. Those are the four pillars on which we build solutions for machine learning or AI. We work with B2B intermediaries who then work with their customers, who are the growers, whether it’s a consumer packaged goods (CPG) company, food processor, government, or developer agencies in the sector, who then work with the growers to either source the raw material or produce alongside them. Or if it is the World Bank and government, they’re working on climate-smart agriculture, or how to do natural farming, or how to advise the growers to become better at doing the crop, right? So our approach is to ensure livelihood, better yield and quality. Currently, we operate in 103 countries with our customers. Cropin runs many programs in India, Africa, Southeast Asia, and other parts of the world, where this intelligence is used by growers and companies to ensure farm productivity, quality, and yield. We manage more than 7 million growers on our platform, collectively cultivating 500 different crops and 10,000 different varieties. It’s a very extensive platform deployed globally, supporting stakeholders in making the right decisions and ensuring predictability for farmers in advance, making it sustainable and improving farmers’ livelihoods by ensuring income. IBT: How have you structured your solution in accordance with the needs of the farmers? Krishna Kumar: In order to achieve this impact, we have built an industry cloud for agriculture, which consists of three layers. The first is the application layer, where there’s an interface for everyone to interact with the information and data, organizing all the economic advisories. So there is an interface for organizations to comprehensively look at all the growers, what they are growing, what the risks are, and how they mitigate those risks. Then there’s an interface designed to work in the field on mobile devices, where growers, agronomists, or farm managers interact with these datasets. For example, imagine a farm manager from PepsiCo or the World Bank running a program. They go to a particular farm, open the application, and see details such as the grower, the crop being grown, and the crop’s age. They also see risks from a disease perspective and receive notifications about potential issues, such as late blight on a potato farm in the next seven to ten days. If the crop has reached a storage or tuber bulking stage, they may also receive predictions about heavy rain forecasted five days in advance. This intelligence allows them to advise on agronomy and plan the grower’s next steps. Growers receive these notifications in their local language via WhatsApp, IVR, or SMS, depending on their phone or receiver type. This application thus reaches every stakeholder in the process across the supply chain, providing enough intelligence and data for informed decision-making. Now, in order to accomplish that, we have a data hub where we gather all the data surrounding the farm, whether there is a sensor or not. So, if there’s no sensor, we utilize satellite data from the past 40 years, current data, and forecasted data for the next six months. Various satellite sources like Planet, Landsat, ESA, or whatever is available around that farm are utilized. This data is collected and structured for each farm on a time basis so that models can run on top of it and provide intelligence for users. Then, there are the models themselves. That’s a model layer, the third layer, where we build AI models either to detect crops, predict yield, forecast diseases in advance, identify climate risks approaching the farm, or issue alerts for deforestation or sustainability-related practices such as tillage or cover crops happening on the farm. These models are run on every farm daily or at a set frequency, providing intelligence to everyone. IBT: With partnerships spanning globally and digitizing millions of acres of farmland, what challenges did you encounter in scaling Cropin’s solutions, and how did you address them? Krishna Kumar: As a company, we have built the product in India for the globe and it was built in India with the complexity we deal with – smallholding farmers and different crops in different regions. And then we had to take this solution globally because our customers were looking for the solution to be deployed in multiple countries due to their operations there. Language was one of the barriers. So if you are in Indonesia, it’s Bahasa; if you’re in Maharashtra, it’s Marathi. If you are in Spain, then it’s Spanish, or Brazil is Portuguese. So how do you make the system? Bringing the localization from a language and unit point of view. Somewhere you call it acres, somewhere you call it “junta,” somewhere you call it hectare, so different; or somewhere you measure it in square meters. So all those changes you have to make. And then you have to build AI models that can scale. So if the model is running on potato
Can India sustain its boom in toy exports?
In recent years, the toy industry in India has gone through a paradigm shift. Between FY15 and FY23, India’s toy industry experienced a major transformation, from being import dependent to emerging a promising export hub. Toy exports shot up by 239%, while imports dropped by 52%, positioning the nation as a net exporter. Important policy steps, like making Bureau of Indian Standards (BIS) approval necessary for selling toys and increasing the basic custom duty to 70%, have been crucial in boosting the production of toys made in India. According to IMARC, the Indian toy market size is expected to reach US$ 4.4 billion by 2032. Let’s delve into potential further steps to invigorate the trade of Indian-made toys. Image Credit: Shutterstock Reminiscing about the days spent stacking colorful rings or enjoying classic board games like Monopoly and Scrabble brings back fond memories for most. Those afternoons of constructing cities with model train tracks or building intricate structures with LEGO sets were truly special. Over time, digital games have gradually replaced traditional toys in capturing children’s interest. Well, for most of us, toys are ‘child’s play’, but for the industry, India’s toy market is serious business. According to IMARC, the Indian toy market size reached US$ 1.7 billion in 2023 and is expected to reach US$ 4.4 billion by 2032, growing at a CAGR of 10.6% during 2024-32. India has been traditionally a net importer of toys, an issue that the government has been working diligently to address. In the past few years, these efforts are bearing results as per a report by IIM Lucknow. During the period between FY 2014-15 and 2022-23, imports declined by 52% and exports have risen by 239%. The report mentions that there is a significant development in the overall quality of toys available in the domestic market as well. The manufacturing ecosystem has been enhanced over the years, with doubling of the number of manufacturing units, reduction in dependence on imported inputs from 33% to 12%, increase in gross sales value by a CAGR of 10%, and overall rise in labour productivity. Thee also seems to be a significant shift in manufacturers’ attention from China to India. To regulate the imports and support toy exports, the Quality Control Order (QCO) was implemented from January 2021 that mandates selling of domestically produced or imported toys to comply with specific Indian Standards for safety. These standards cover various safety aspects like prevention of sharp edges, small parts hazards, flammability and the migration of harmful chemicals. Moreover, the toys must carry the Bureau of Indian Standards (BIS) certification mark (ISI Mark). The enforcement of these standards includes random checks and testing of toy consignments in NABL accredited laboratories. Before BIS regulations, India greatly relied on imports from China. The increase in customs duty on toys from 20% to 70% between February 2020 and March 2023, along with non-tariff barriers like the quality control order (QCO) and mandatory sample testing since January 2021, significantly hindered toy imports. These measures were aimed at decreasing the demand for imported toys and safeguarding the domestic industry and encouraging Make in India initiatives. Additionally, the COVID-19 pandemic disrupted global supply chains in 2020-21, impacting imports overall. Although the global supply chain gradually recovered in 2022-23, India’s net exports decreased, highlighting a link between supply chain disruptions and India’s export performance. Impact on toy trade The introduction of higher import duties and the QCO has positively impacted the toy trade in India. According to a report by Global Trade Research Initiative (GTRE), the toy imports witnessed a drastic fall from US$ 304.1 million in FY2019 to US$64.9 million in FY2024. Following the implementation of import duty increase in February 2020 and QCO in January 2021, the country witnessed the steepest decline between FY2020-22, demonstrating the direct impact of new regulations. Imports dropped from US$ 279 million in FY 2020 to US$ 35.9 million by FY 2022. They slightly increased to US$ 62.4 million in FY2023 and US$ 64.9 million in FY2024. As of import sources, the share of imports from China dropped from 87% of India’s total toy imports in FY2019 to 64% in FY2024. Although an increase in imports was witnessed from other regions such as ASEAN countries (16.7%), Sri Lanka (12.4%) and the Czech Republic (4.7%). Though the domestic measures aimed at supporting local industry and ensuring safety, they did not boost India’s toy exports to an expected scale. According to GTRE report, the exports significantly recorded a rise from US$129.6 million to US$177 million from FY2020 to FY2022. However, the exports had decreased to US$152.3 million by FY2024. As per data provided by Ministry of Commerce and Industry, India’s toy industry made a remarkable rise between FY2015 and FY2023 with exports rising by a whopping 239% and imports declining by 52%, resulting in the country becoming a net exporter. Source: GTRE, Figures in US$ million Government initiatives to boost toy exports Apart from increase in import duties and implementation QCO, the government has taken multiple steps to provide support for creating conducive manufacturing and export ecosystem for the toy industry, some of these are: The Government of India developed a comprehensive “National Action Plan” for Toys in 2020 to boost local manufacturing and incentivize toy and handicraft manufacturers to make India the next global hub of toys. The plan is implemented in collaboration with 14 Central Ministries/Departments, including Education, Textiles, Railways, Science and Technology and Information and Broadcasting. It contains 21 action points across four broad themes – Promoting Trade and Investment, Design and manufacturing of Toys in India, Promoting Indigenous Toys, and Toys as learning resource. Mandatory sample testing of each consignment and no permission for sale unless the quality testing is successful. In case of failure, the consignment is either sent back or destroyed at the cost of the importer. Special provisions are made by BIS to grant license to micro scale units manufacturing toys without testing facility for one year and not to insist on establishing in-house facility. On industry
India’s AI adoption surges, poised for explosive growth
India’s business landscape is experiencing a significant shift driven by artificial intelligence (AI). A recent study by Teamlease Digital reveals that AI adoption across key sectors has reached nearly 48% in FY24, with projections indicating a further increase of 5-7% in FY25. This rapid growth positions India as a promising market for AI solutions. The evolving landscape of AI adoption in key Indian sectors signifies a paradigm shift towards innovation, efficiency, and competitiveness. Image source: Pixabay AI market size was estimated at US$ 6 billion in 2023, expected to reach US$ 20 billion by 2028, at a CAGR of 26%. Additionally, 60% of the AI market share is held by IT service providers, 8% by captives and global capability centres (GCC), and nearly 7% by the IT-enabled service (ITeS) providers. “AI adoption in India is yet to mature compared to global markets such as the US. This is partly due to a talent gap of close to 50% in India. While the country has about 4.2 lakh AI professionals, the need is for six lakh professionals. Countries like the US have far more advanced infrastructure in place as well as more robust funding for startups,” said Krishna Vij, business head, Teamlease Digital. “The government policies, the ethical considerations, and the need for adapting to and implementing AI are much easier in the US and in a global scenario that is still evolving in India,” Vij added. India is still focusing on enhancing its existing portfolios towards AI and formulating its policies accordingly, which will require a lot of government support. The adoption of AI could have a US$ 500 billion potential impact on India’s gross value added (GVA) by FY2026, according to estimates made by the IT industry body Nasscom. Ahead of schedule, the Indian government authorised the provision of more than Rs 10,000 crore for the India AI Mission, which aims to “bolster India’s global leadership in AI” by promoting the growth of compute capacity, AI expertise, and innovation. Sector-wise Adoption Trends The rate of artificial intelligence (AI) adoption in key industries across India reached approximately 48% in FY2024, with expectations to expand by an additional 5-7% in FY25, data from staffing firm Teamlease Digital showed. “Nearly 75% of organisations across various sectors are actively considering integrating AI into their operations within the next year,” Krishna Vij, business head, Teamlease Digital, told ET. The study highlights a sectoral disparity in AI adoption. The Banking, Financial Services and Insurance (BFSI) sector leads the pack with a staggering 68% adoption rate, followed closely by the tech industry (60-65%). This trend reflects the immense potential of AI in streamlining financial processes, fraud detection, and risk management. The healthcare and pharmaceutical sector is another early adopter, with an impressive 52% of companies leveraging AI. This translates to advancements in medical diagnosis, drug discovery, and personalised patient care. The Fast-Moving Consumer Goods (FMCG) and retail sectors follow with a 43% AI adoption rate. AI-powered analytics can optimise supply chains, personalise marketing campaigns, and enhance the customer experience. Manufacturing, despite lagging behind at 28%, is poised for significant growth in AI adoption. AI solutions can revolutionise production processes, improve quality control, and optimise resource allocation. The study also identifies sectors with lower AI adoption rates. Infrastructure and transport currently sit at 20-22%, with media and entertainment at 10-12%. However, the potential applications of AI in these sectors are vast, such as smart city management, traffic optimisation, and personalised content recommendations. Despite its rapid progress, India faces challenges in its AI journey. A major hurdle is the talent gap, with a shortfall of nearly 50% in skilled AI professionals. Additionally, India’s infrastructure and access to funding for AI startups require further development. The government has recognised these roadblocks and is taking proactive measures. The recent allocation of over Rs 10,000 crore towards the India AI Mission is a testament to this commitment. This initiative aims to bridge the skill gap, expand AI infrastructure, and foster innovation within the AI ecosystem. Looking Ahead The Indian AI market is demonstrating a promising future. With continued government support, increased talent pool, and growing investments, India is well-positioned to become a global leader in AI adoption across various sectors. As industries continue to harness the power of AI, collaborative efforts between the public and private sectors, along with a focus on talent development and policy frameworks, will be instrumental in driving sustainable growth and technological advancement in the Indian business ecosystem. This will not only unlock significant economic benefits but also position India at the forefront of technological innovation.
India’s agriculture soars with drone revolution
Backed by government initiatives like the Production-linked Incentive (PLI) program, India aims to emerge as a global drone manufacturing hub by 2030. Agriculture drones, a key segment of this industry, promise to transform farming practices, offering real-time insights into soil health, crop conditions, and water management. By optimizing resource allocation and enabling targeted interventions, drones not only enhance yield but also mitigate environmental impact. Early pest and disease detection further reduces reliance on harmful chemicals, fostering sustainable agriculture. The Indian agriculture drone market is set to skyrocket, with projections indicating a quadruple expansion over the next five years. With applications ranging from soil analysis to livestock monitoring, drones are becoming indispensable tools for modern farmers. Government schemes like ‘Drone Didi’ and subsidies for nano soil nutrient spraying underscore the commitment to harnessing drone technology for agricultural prosperity. As drones take flight, they pave the way for a greener, more bountiful future for Indian agriculture. Image Credit: Shutterstock The India’s agricultural sector, comprising approximately 18% of India’s Gross Value Added (GVA) in fiscal year 2024, serves as the foundation for the nation’s economy. Despite grappling with challenges arising from the global health crisis and fluctuating climate conditions, the sector has showcased remarkable resilience and determination, playing a crucial role in India’s economic resurgence and progress. Drones have been considered to be part of the Industry 4.0 ecosystem in India, and are expected to boost the country’s GDP by 1-1.5% and add over 5 lakh jobs in the coming years. The Indian government has been actively fostering the manufacturing of drones and drone components through a range of policies and initiatives, including the Production-linked Incentive (PLI) program. This strategic endeavour aims to transform India into a worldwide hub for drones by the year 2030. Drones hold immense potential to revolutionize Indian agriculture, fostering sustainability, profitability, and environmental stewardship. By providing real-time data on soil health, crop conditions, and water usage, drones enable precise resource management, reducing input costs and environmental impact. Targeted interventions based on aerial imagery enhance yield potential while minimizing waste, making agriculture more financially lucrative. Additionally, drones facilitate early detection of pests and diseases, enabling timely intervention and reducing reliance on chemical pesticides. This holistic approach promotes sustainable farming practices, ensuring long-term viability for Indian agriculture while safeguarding the environment and maximizing economic returns. According to the industry estimates, currently over 3,000 drones are being utilised in the Indian agriculture sector, which is expected to rise over 7,000 by FY25. This would further support crop productivity through optimum use of water, soil nutrients and crop protection formulations. Backed by various policies by the government to support technologies for farmers, drone manufacturers foresee an exponential rise in demand for Unmanned Aerial Vehicles (UAV) in the upcoming years. India’s agriculture drone market The drone manufacturing industry in India is projected to grow from Rs 60 crore in 2020-21 to Rs 900 crore by 2024-25. With regard to the Agriculture drones market, India is expected to experience a quadruple expansion during the period, according to Bluewave Consulting. According to Frost and Sullivan, drone adoption in India’s agriculture sector is expected to grow at a CAGR of 38.5% and reach US$ 121.43 million by 2030, accounting for 2% of all expenditures on agricultural machinery. Gradually becoming an integral part of the farming process, drones offer solutions for precision agriculture, crop monitoring and input management. Here are some of the most promising drone applications in agriculture: Soil and field analysis: Drones with remote sensing technology use electromagnetic spectrum cameras to gather ground data, distinguishing elements by their reflected wavelengths. This enables drones monitor aspects like insect damage, pest related color changes, vegetation etc. Seed Planting: Drones equipped with specialized containers featuring controlled dispersal mechanisms can efficiently sow seeds, ensuring precise release from the air to the ground. Moreover, these drone systems have the capability to shoot seed pods, along with vital plant nutrients, directly into well-prepared soil, thus significantly reducing planting time. Crop spraying: Drones play a crucial role in safeguarding crop health by efficiently applying pesticides and herbicides. Equipped with reservoirs holding these substances, they utilize advanced technology like TOF lasers, ultrasonic echoes, and GNSS signals to precisely adjust their speed and altitude, ensuring accurate spraying across various terrains. Crop Monitoring: Drones swiftly capture large farm areas, aiding farmers in health assessment, issue identification and data-driven decisions on fertilization, pest control and irrigation. Moreover, advanced sensor-equipped drones provide precise soil information, optimizing input use and reducing waste. Livestock Monitoring: Livestock technology, like RFID tags and remote sensors, automates continuous monitoring by collecting physiological or behavioral data and alerting about any irregularities. Compared to manual methods, it provides more detailed information. Drones equipped with RFID tags can precisely locate individual animals, simplifying supervision for farmers and reducing the reliance on specialized personnel, resulting in cost savings. The evolving agriculture drones market The Government of India is consistently supporting the agricultural industry. The country witnessed total food grains production of 329.7 million tonnes for FY23, marking a rise of 14.1 million tonnes compared to the previous year. For the same, an amount of Rs 6,405.55 crore has been allocated for agricultural mechanisation during the period from 2014-15 to December 2023. From the funds of Sub-Mission on Agricultural Mechanization (SMAM), an amount of Rs 141.41 crores have been released towards Kisan drone promotion which includes purchase of 317 drones for their demonstration in 79,070 hectares of land and supply of 527 drones to the farmers on subsidy. The government sanctioned a central sector scheme, known as ‘Drone Didi’, allocating 15,000 drones to women self-help groups (SHGs) in specified clusters, last year. The scheme, spanning from 2024-25 to 2025-26, has a budget of Rs. 1,261 crore. The Centre will offer 80% assistance, capped at Rs. 8 lakh per SHG, to cover the drones’ costs and accessories. To encourage the adoption of nano urea and di-ammonium phosphate (DAP), prominent fertilizer cooperative IFFCO announced in July 2023 its plan to procure 2500 drones for spraying nano soil nutrients. Additionally, the cooperative is
