India continues to be the center of attraction as a possible investment center for some of the biggest companies in the world. Alibaba Group Holding Ltd (NYSE:BABA) is the latest to show the clearest of indication of venturing into the fast-growing online retail industry. Bloomberg’s Sunanda Jayaseelan reports that Alibaba perceives India as the second largest sourcing center out of China clearly indicating how important the country could be to the company, in the near future.
As part of a large Chinese business delegation to India, Alibaba Group Holding Ltd (NYSE:BABA) Chief Jack Ma gave a clear indication of the company’s willingness to pursue market share in the country.
“Alibaba Group Holding Ltd (NYSE:BABA) is also apparently reworking some of its existing technology platforms so that it works better with Indian businesses. [..] Ma also saying that Alibaba could also hire more India software’s professionals, “said Mrs. Jayaseelan.
Ma has already pledged to invest more in India signaling Alibaba’s willingness to diversify its operations away from China and into other international markets. Flipkart remains the only dominant force in India’s growing online landscape but could face immense pressure in the coming years as Alibaba Group Holding Ltd (NYSE:BABA) and Amazon.com Inc. (NYSE:AMZN) signal intentions of tapping into the space.
Just as Amazon continues to disrupt the online landscape in India so is Alibaba expected to do the same in the future but with more intensity as it is backed by one of the biggest population back at home.
The fact that India does not allow foreign investments in the online retail space will not in any way affect Alibaba as the company does not hold any inventory but essentially provides a platform for transactions. Ma has been a buzz of activities on his first visit to India awaiting to see if Alibaba Group Holding Ltd (NYSE:BABA) will partner with any online company in the country
“Reports indicating that he has met with several India entrepreneurs especially in the e-commerce space including Snapdeal, which is one of India’s largest online companies. Softbank is an investor in both Alibaba as well as Snapdeal and reports are suggesting that the Chinese firm is considering an investment in the Indian e-commerce giant, which will help it get an easy entry into India, “said Mrs. Jayaseelan.
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