Paytm, Snapdeal can wait. Alibaba likely to enter India on its own

Whether the Jack Ma-led Chinese major enters the Indian e-commerce sector as Alibaba or 'Alibaba plus', there will be two definite gainers, consumers and the segment.
Analysts and stakeholders said so to Business Standard after the surprise statement by a company executive on Friday evening. "We are planning to enter the e-commerce business in India in 2016,'' Alibaba group president J Michael Evans told reporters here, after his meeting with communications and information technology minister Ravi Shankar Prasad.     Personal Numerology

Alibaba, in the headlines for months following a stunning initial public offering in 2014, is yet to reveal its India plans. This has kept the e-commerce world guessing on what its entry would mean to the existing entities and the sector.      Share Market Astrology

Most experts say Alibaba is likely to make a dash into Indian e-commerce on its own, quite like Amazon did almost three years earlier. Its investments in existing players such as Paytm and Snapdeal could run parallel to its standalone India play, they suggest.

A comment on the latest development could not be had from digital wallet and online marketplace Paytm, where Alibaba has a majority shareholding.   Jackpot Stocks Trading Tips

Harish H V, partner (India leadership team), Grant Thornton, said Alibaba has substantial cash and is sure to make massive investments here. That will mean two big international players, the other being Amazon, competing in India. How the competition unfolds will depend on whether Alibaba comes alone into e-commerce or along with the companies where it has already invested, such as Paytm and Snapdeal. Reports suggested it considered investing in Flipkart, too, which the latter denied.

"If Alibaba actually enters India in tie-ups with the other e-commerce companies, the sector could well split into two camps-Amazon versus the rest,'' the consultant said, adding this was only one of the scenarios. However, this looks unlikely. Most leading companies have been talking of a long-term play in this space. Also,  Indian stock market astrology prediction

Arvind Singhal, founder of retail consultancy Technopak, argued Alibaba would not acquire an Indian e-commerce entity unless it gets the right price. With no restriction on foreign direct investment in online marketplaces, Alibaba might want to come on its own.  Commodity Market Astrology Tips
"Amazon announced an investment of $2 billion (Rs 13,300 crore) in the India market in 2014, and is still left with cash from that tranche. Alibaba might want to spend at that level, rather than acquire a Flipkart or Snapdeal at multi-billion dollars,'' Singhal said. He agreed, though, that there could be savings from infrastructure and technology sharing between companies.

Alibaba has tested the India e-commerce market passively through its investments in Paytm and Snapdeal. Now is the time for big play, felt Singhal. He says consumers will benefit the most from Alibaba's entry, as it will mean greater choice of products and higher discounts. Another beneficiary will be the e-commerce sector. The numbers projected by Goldman Sachs, that e-commerce will be a $100-billion market        Nifty Trading Tips