India-Mexico Trade Potential Unlocked by Moglix and Credlix
Historically, trade between India and Mexico has fallen short of its potential, with annual exchanges barely reaching $12 billion—less than 0.5% of their combined trade. Rahul Garg, founder and CEO of Moglix, asserts that this figure could multiply in the coming decade due to initiatives like India-Mexico Connect.
Moglix is Asia’s largest B2B e-commerce platform, connecting major manufacturers and thousands of SMEs in Asia, the US, Middle East, and now Mexico. Their proposition is to facilitate access for Mexican manufacturers to over 20,000 certified Indian suppliers through a digital model that simplifies purchasing, logistics, and customs documentation.
Credlix, Moglix’s financial arm, aims to address a significant hurdle for Mexican SMEs: access to working capital. While exporters typically wait 60-90 days for payments, Credlix offers same-day financing without collateral, up to 90% of the shipment’s value.
Globally, they have already financed $750 million, with $50 million allocated to Mexican businesses.
Asur’s Passenger Traffic Rises in August
Grupo Aeroportuario del Sureste (Asur) reported a 0.6% increase in passenger traffic during August, serving 6 million 025,993 travelers across their terminals. This marks two consecutive months of passenger traffic growth.
Domestic traveler traffic decreased by 0.5%, while international traveler traffic rose by 2.9% for the second consecutive month.
In Mexico, Asur’s terminals experienced a 2.6% decline in domestic traffic and a 0.4% decrease in international traveler flow.
Impact of New Taxes and Infrastructure Investments
Following the federal government’s announcement of a Special Production Tax (IEPS) on cigarettes, violent video games, and sodas, bottling companies have felt the pinch.
Coca-Cola FEMSA (KOF) shares dropped 1.03% to 156 pesos, FEMSA fell 0.46% to 161.71 pesos, and Arca’s shares plummeted 3.26% to 183.24 pesos on the Mexican Stock Exchange, where FEMSA and Arca are prominent Coca-Cola distributors worldwide.
Promotora y Operadora de Infraestructura (Pinfra), a toll road operator, announced the purchase of 50% of its subsidiary Macrosur Colima’s shares in a $14 million (265 million pesos) deal.
Macrosur Colima holds the contract and concession title for the “Macrolibramiento Sur de Colima” highway project. Pinfra plans to invest $4.863 billion in the “Macrolibramiento Sur de Colima” project.
ANPACT Warns of Sector’s Fragility Amidst Trade Volatility
The National Association of Producers of Buses, Trucks, and Tractors (ANPACT) cautioned that August sales, production, and export figures for heavy vehicles confirm the sector’s vulnerability to trade volatility and tariff pressures.
Commercialization at bulk levels fell nearly 60% compared to the same month last year, while production and exports plummeted more than 62% and 59%, respectively.
Key Questions and Answers
- What is Moglix and Credlix? Moglix is Asia’s largest B2B e-commerce platform, connecting manufacturers and SMEs in various regions, including Mexico. Credlix is Moglix’s financial arm, offering same-day financing to Mexican SMEs without collateral.
- How has Asur’s passenger traffic performed in August? Asur reported a 0.6% increase in passenger traffic, with domestic travelers down 0.5% and international travelers up 2.9%.
- What impact have new taxes had on bottling companies? The newly announced IEPS on cigarettes, violent video games, and sodas has negatively affected bottling companies like Coca-Cola FEMSA, FEMSA, and Arca, causing their share prices to drop.
- What is Pinfra’s investment in Macrosur Colima? Pinfra purchased 50% of Macrosur Colima’s shares in a $14 million deal, planning to invest $4.863 billion in the “Macrolibramiento Sur de Colima” highway project.
- What challenges does the heavy vehicle sector face? ANPACT reports that near 60% decline in bulk sales, along with more than 62% drop in production and 59% decrease in exports, highlights the sector’s vulnerability to trade volatility and tariff pressures.
