Business Wire India
Agro Malaysia urges Malaysian private label manufacturers to leverage on the growth of private labels and store brands in India by exporting to the country that has a population of 1.2 billion people, also known as the world’s second largest population. With growth of between 5% and 8% in the private label industry, the demand for international private labels, especially for fast-moving consumer goods, is booming in India.
Indian Prime Minister Narendra Modi who called on Malaysian Prime Minister Tun Dr Mahathir Mohamad recently demonstrated the strong commitment of the two countries to further strengthen the strategic partnership. Agro Malaysia made it clear that the meeting between the leaders of the two countries underlined the fundamental strength of the millennia-old relations between Malaysia and India.
Malaysia and India enjoy close relations through cultural and historical linkages as well as in various key areas, particularly infrastructure development, education, tourism and defense.
India is Malaysia's largest trading partner in South Asia, with total trade amounting to RM61.43bil in 2017. The economic relations between Malaysia and India has surpassed the traditional stage following efforts by both countries to raise it to the strategic level.
Prominent Malaysian politician Dato Sri G Gnanaraja who won the presidency uncontested and came into power as the new President of Agro Malaysia said, with India’s economy setting for a higher growth trajectory following economic reforms under Prime Minister Narendra Modi, the country offered a vast economic potential and great economic space that Malaysian investors could capitalise on.
“Traditionally, Malaysia and India has good relations but I believe the close relations between Modi and Prime Minister Tun Dr Mahathir Mohamad is important in propelling the relations between both countries for mutual interest," he said at a press conference with Indian journalists here today.
Dato Sri G Gnanaraja said that among the factors that contribute to the increasing demand for private labels in India include the improved quality of private label products in the market, resulted in more affluent consumers in India. According to Agro Malaysia’s market report, India is one of the fastest growing consumer markets in the world and its retail system is becoming ever more organized, indicating a good prospect in strengthening Malaysian manufacturers footprint there.
Currently, the share of private labels in India is around 10% and by 2025 the industry is forecast to have a market share of around 15% of India’s total retail segment. Among the private label sectors in Malaysia that can dominate the Indian market are the food sector, a non-food category such as cosmetics, health & beauty, toiletries, auto care products, household cleaners, personal care and fabric care.
Some of the private label goods in India manufactured by Malaysian companies are diapers, surgical gloves, food products, hair styling and beauty products as well as baby care products.
Dato Sri G Gnanaraja also said that during the period of January to July 2018, Malaysia’s total trade with India recorded a double-digit growth of 37.1% to RM35.44 billion, compared with the same corresponding period in 2017. Malaysia’s export to India rose by 17.4%, amounted to RM20.49 billion, mainly consisting of electrical & electronic products, palm oil & palm-based agriculture products, crude petroleum, manufacturers of metal and chemical & chemical products. In 2016, India was also ranked as Malaysia’s 10th trading partner globally and 9th in Asia.