Zomato and Blinkit Parent Eternal’s Board Clears Plan to Cap Foreign Ownership at 49.5%
Eternal, the parent company of popular platforms Zomato and Blinkit, recently made a strategic decision to cap foreign ownership at 49.5%. This move comes as part of the company’s initiative to establish itself as an Indian-Owned-and-Controlled Company (IOCC). By doing so, Eternal aims to enhance Blinkit’s margins, especially within fragmented or unbranded categories, as well as in well-established FMCG segments where owning inventory can lead to improved profitability.
The concept of an Indian-Owned-and-Controlled Company (IOCC) holds significant benefits for businesses operating within the Indian market. By maintaining majority ownership and control within the country, companies like Blinkit can navigate the competitive landscape more effectively. In the case of Blinkit, this means a targeted approach towards enhancing margins in specific product categories and segments.
One of the key advantages of the IOCC status is the ability to own inventory in online commerce operations. This ownership provides companies with greater control over supply chain management, pricing strategies, and overall business operations. By leveraging this ownership structure, Indian companies can optimize their processes to achieve better margins and operational efficiencies.
Eternal’s decision to cap foreign ownership at 49.5% underscores the company’s commitment to strengthening its position as an Indian-controlled entity. This strategic move not only aligns with regulatory requirements but also reflects Eternal’s focus on driving growth and profitability within the Indian market. By prioritizing Indian ownership and control, the company is poised to unlock new opportunities for expansion and innovation.
Furthermore, the emphasis on enhancing margins in fragmented or unbranded categories highlights Eternal’s strategic vision for Blinkit’s future growth. By concentrating on these specific areas, the company can differentiate its offerings, capture market share, and build a more sustainable business model. This targeted approach enables Blinkit to address evolving consumer preferences and market dynamics effectively.
It is worth noting that several Indian companies have successfully leveraged the IOCC status to strengthen their market position and drive business growth. By capitalizing on the benefits of owning inventory in online operations, these companies have been able to enhance their competitiveness and profitability. Eternal’s decision to embrace the IOCC framework positions Blinkit as a player in this league of companies leveraging Indian ownership for strategic advantage.
In conclusion, Eternal’s board’s approval to cap foreign ownership at 49.5% marks a significant milestone in the company’s journey towards establishing itself as an Indian-Owned-and-Controlled Company. By focusing on improving margins in key product categories and leveraging the benefits of IOCC status, Blinkit is poised to enhance its competitive edge and drive sustainable growth. This strategic decision not only reflects Eternal’s commitment to Indian ownership but also sets the stage for a new chapter of success and innovation in the ever-evolving Indian e-commerce landscape.
Zomato, Blinkit, Eternal, IndianOwnedandControlledCompany, IOCC