Chinese E-giant Alibaba, has just made a bold move to increase business in India by entering into agreements with new Indian partners and venturing into the refurbished Trade Facilitation Centre program in the country. These new partners are: IDFC Bank, Delhivery, DHL and Kotak Mahindra Bank.
The entrance will be in the B2B field, where through its partnerships, Alibaba hopes to encourage small and medium size enterprises to buy their trade- requirements from them in bulk.
For all banking and financial transactional services, Alibaba.com will be working with otak and IDFC. Delhivery will be responsible for all the logistics within the country and DHL will handle the overseas logistics.
K Guru Gowrappan, Global MD and Head of India Division, Alibaba Group said, “The TFC is instituted for the sole purpose of driving greater participation of Indian SMEs in the international trade and business market.”
Alibaba also said that the company will provide tailor-made services for each client. This extremely positively volatile market had 6 million users at the start of 2016 had 6 million users.
Several small and medium size businesses in India have reportedly faced significant losses because of lack of such solution packages that Alibaba promises to deliver with. This makes this complex business venture a potentially hugely reaping one. With 6 million potential clients that continue to grow, the set-up can work wonders.
The challenges faced by SME’s in India are not limited to areas such as logistics and credits. Alibaba’s current venture according to the company officials will be a one-stop place for business solutions. Word had been around the block for a long time that the Chinese company is going to india, but it has finally happened, and not-so-oddly-enough in a virtually untapped market.