According to Goldman Sachs, it got estimated that India’s e-commerce business got projected to grow at a compound annual growth rate (CAGR) of 27 percent to $ 99 billion by 2024. Not only this, but Reliance Industries (RIL) will also capture half the online grocery sales segment of India. By 2024, India will see considerable growth in online business through many components of e-commerce business like retail, fashion, apparel. In this report, the possibility of reaching 10.7 percent through the rapid growth of online access to retail has been expressed by Goldman Sachs.
Recently, Facebook has bought a 9.99 percent stake in Reliance Industries company Jio Platform. Reliance Industries will capture half of the online grocery market for its retail business through Facebook. According to the report, the largest market-cap company in India is Reliance Industries, which has tied up with WhatsApp via Facebook for online grocery in the e-commerce sector. Jiomart, created for RIL’s e-commerce business, plans to use Facebook’s WhatsApp to connect local grocery stores with consumers.
Goldman Sachs also estimated that the non-grocery e-commerce segment would accelerate to 500 basis points in the next two years, and it will achieve a growth rate of 16.1% by 2021. RIL’s partnership with Facebook will make RIL a market leader in online grocery by 2024, with over 50 percent share.
The grocery category in India was a market of $ 380 billion by the 9. It is 60 percent of the entire retail market. The share of the online grocery market in this is still less than 0.5 percent; its size is only $ 2 billion. Goldman Sachs says that India’s online grocery market got projected to grow 20 times to $ 29 billion in the next five years. The business of e-commerce companies has not decreased during this coronavirus epidemic crisis, but rather it has seen an increase. The e-commerce segment is expected to boom rapidly, and investments in these companies would prove beneficial.