9DECEMBER 2024TOP STORIESINDIA RISES AS WORLD'S 4TH LARGEST LNG IMPORTERCONSUMER PREFERENCES GRAVITATING FROM E-COMMERCE TO QUICK COMMERCE India is ranked as the world's fourth biggest importer of LNG. The government aims to raise the proportion of natural gas in the nation's main energy sources to 15 percent by 2030, up from the current 6 percent. The government-owned company GAIL has entered a 10-year deal with ADNOC Gas from the UAE to buy a maximum of 0.52 MMTPA of liquefied natural gas annually.GAIL announced in a statement that the delivery of LNG will commence in 2026. ADNOC Gas will transport the shipments from its Das Island plant, which can process 6.0 million metric tons of LNG per year."India is witnessing a growing demand for LNG to meet its increasing natural gas demand in a diversified sectoral pattern. GAIL plans to significantly increase its term LNG portfolio in the coming years to meet this rising demand," said Sanjay Kumar, director (marketing), GAIL."This agreement reflects our ambition to capture future growth opportunities in gas demand," said Rashid Khalfan Al Mazrouei, Senior Vice President (Marketing), ADNOC Gas.GAIL (India) Limited is a state-owned energy company in India that focuses mainly on natural gas trading, transportation, and distribution. GAIL is also involved in the exploration and production of solar and wind power, as well as telecom and telemetry services (GAILTEL) and electricity generation.GAIL was established in August 1984 as the Gas Authority of India Ltd. under the Ministry of Petroleum and Natural Gas with the purpose of constructing, managing, and upkeeping the HVJ Gas Pipeline. On 1 February 2013, the Indian government granted GAIL Maharatna status, along with 11 other Public Sector Undertakings (PSUs). Many consumers are now opting for quick deliveries, with a reported 46 percent reduction in purchases from traditional kirana shops. This shift is putting pressure on e-commerce majors to match delivery speeds and price points and has triggered a price war in the home delivery space. Quick-commerce companies have successfully reduced the pricing premium they previously charged for instant deliveries, now offering competitive prices to attract customers.The quick-commerce sector, expected to reach a market size of $40 billion by 2030 (up from $6.1 billion in 2024), is starting to encroach on traditional e-commerce platforms like Amazon and Flipkart. While e-Commerce has typically been preferred for planned purchases, quick-commerce platforms are rapidly diversifying and are now targeting items traditionally dominated by larger e-Commerce firms. The shift in consumer preferences toward instant deliveries for groceries and other fast-moving goods is intensifying the competition between these sectors. Quick-commerce companies are also disrupting Kirana shops and modern retail by offering competitive pricing and faster delivery.The Swiggy IPO has been hailed as the most successful in its category in a decade, listing at a 5.6percent premium to its issue price of 390. It closed at Rs 455.95, a 17 percent increase over the IPO price, defying expectations of a weak debut, especially in a challenging market. With a market capitalization of Rs 1.02 lakh crore at the close, Swiggy's listing reflects the growing prominence of the quick commerce sector, an emerging business that is rapidly attracting investment.While this aggressive pricing strategy may not always be profitable in the short term, it is seen as a market acquisition cost to gain loyal customers, according to industry experts. As quick-commerce companies continue to expand their reach, e-Commerce platforms are facing increased pressure to adapt by improving delivery times and pricing, further intensifying the competition in the retail space.
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