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Imagine a bustling jewellery market teeming with diamonds and gold. Amidst this glittering chaos, a small stall is trying to sell handcrafted gemstones. Even as newer and shinier outlets keep cropping up, all vying for attention, this gemstone store offers some of the oldest yet valuable jewels at a discount. Though they lack immediate sparkle, these rare gems reveal their value to the discerning buyer. This is how South Korea appears for many experts in global capital markets: a trove of undervalued gems, overshadowed by brighter, more aggressively marketed investment options. This undervaluation, known as the "<keyword id="24399183" type="General" weightage="20" keywordseo="korean-discount" source="keywords">Korean Discount</keyword>," reflects how South Korean companies are priced much lower than their global peers despite robust fundamentals — strong financial performance and consistent profitability. Contributing factors are many, ranging from opaque governance structures to geopolitical risks. But the fact stays, if you are a seasoned conglomerate listed in South Korea, you are likely undervalued. <keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword> Motor India Ltd. (HMIL), a subsidiary of the Korean giant Hyundai Motor Company (HMC), recently sought to escape this valuation trap by listing in India, a market where investor optimism commands premium pricing. But its valuation raised many eyebrows! Now that a month and a half has gone by since its listing, time is apt to examine if this gamble paid off. Will <keyword id="93460" type="General" weightage="100" keywordseo="hyundai-india" source="Orion">Hyundai India</keyword> justify its high valuation? Or does the listing highlight broader questions about the overheated valuation dynamics of Indian markets? A record-breaking <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword> but questions remain Hyundai Motor India’s mega Initial Public Offering (IPO), launched in October 2024, broke records by raising ₹27,870 crore, making it India’s largest-ever IPO. The offer was oversubscribed by 2.37 times, highlighting robust demand. But many investors remained sceptical: was this IPO an honest attempt to expand Hyundai’s footprint in India or was it trying to offer a way to cashout for existing investors and promoters? Or perhaps, is it an attempt by the Korean chaebol — a large family-owned business conglomerate — to break free from the aforementioned “Korean Discount”? When shares listed on October 22, these concerns seemingly weighed on the minds of most investors and the stock promptly dipped 5% below the issue price on the day. A tepid grey market performance had already foreshadowed this muted debut in the Indian markets. Now, after almost 35 trading sessions on Indian market, the stock remains almost exactly at price it listed on October 22 at Rs 1820—no gain, no loss. <h3>The gamble of hyper-valuation</h3>Much of this hesitation stemmed from Hyundai’s valuation. On listing, Hyundai was valued at $18 billion, positioning it as one of India’s most valuable automotive companies. However, such high valuations often temper investor enthusiasm, resulting in more cautious short-term outcomes. For most investors, the Price-to-Earnings (P/E) ratio is the most preferred parameter to gauge if a company is overvalued or undervalued. With a P/E ratio of 26.3, HMIL was priced significantly above the Indian automotive industry average of 24.4. Globally, automotive companies operate with much lower P/E ratios, reflecting mature market conditions and slower growth trajectories. HMIL’s South Korean parent Hyundai Motor Company (HMC) trades at a meagre 3.07, believe it or not! For Indian investors, the high premium hinted at overvaluation despite Hyundai’s strong domestic position. Such stark difference in valuation obviously sparked debates — is the Indian market assigning a premium to Hyundai Motor India’s growth potential, or is it simply reflecting the general exuberance around the prospects of the Indian economy? Another concern is the allocation of IPO proceeds. Hyundai’s IPO was structured as an offer for sale (OFS), meaning all funds raised would flow to the parent company rather than Hyundai India’s operations. Although Hyundai has committed to investing in R&amp;D for EVs and hybrids, critics argue that the lack of immediate reinvestment in India’s operations reflects a missed opportunity for domestic growth. Despite the early disappointment, Hyundai was confident that the valuation was fair. It did have some factors going for it, in addition to the fact that other auto giants like Mahindra &amp; Mahindra and <keyword id="19909974" type="General" weightage="20" keywordseo="maruti-suzuki" source="keywords">Maruti Suzuki</keyword> command even higher P/E ratios. And looking at the company fundamentals, it does seem like Hyundai is playing a long-term game. <h3>Hyundai in India: A proven track record</h3>Despite the initial stumble, Hyundai India’s long-term story is compelling. Since entering the Indian market in 1996, the automaker has sold over 8 million vehicles and firmly occupies the second spot in the domestic passenger vehicle market, trailing only Maruti Suzuki. Hyundai’s blockbuster SUV offerings, like the Creta and Venue, have been critical in building this dominance. Despite some challenge from Maruti Suzuki Brezza and Tata Punch, Creta has retained the tag of ‘most-selling SUV in India’ successfully so far this year. <div type="image" title="Hyundai" agency="Business Insider India" msid="116156234" hostid="261" caption="&amp;lt;p&amp;gt;Selling over 17,000 units per month on average this year, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva)&amp;lt;/p&amp;gt;"></div> Selling over 17,000 units per month on average, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva) Hyundai India’s market share of 14% in October 2024 underscores its clout. The company’s ability to tap into India’s premiumisation trend, where consumers increasingly prefer high-end vehicles, positions it well for growth. With plans to expand in electric vehicles (EVs) and hybrid technology, Hyundai is poised to capitalise on both domestic demand and export opportunities. The company’s ability to capitalize on its strong brand, extensive dealer network, and leadership in segments like SUVs and exports will determine its future performance. Hyundai’s strategic focus on expanding electric vehicle production also aligns with global trends towards sustainability, potentially positioning it as a leader in the segment. By listing in India, Hyundai aims not only to expand its operations but also to make India a global manufacturing and export hub for its products, especially SUVs and EVs. Therefore, despite early setbacks, Hyundai’s gamble seems to have paid off. The stock has rebounded, gaining 5% in the past month. More good news came in this week, as positive projections from Morgan Stanley and JPMorgan forecast an impressive 17-28% upside for the stock over the next year, reflecting growing investor optimism. <h3>A strategic pivot from the Korean Discount?</h3>The Korean Discount has long plagued South Korea’s chaebols, including Hyundai. Experts attribute this to several factors: <ul> <li>Chaebol Governance: South Korea’s conglomerates, known as chaebols, are often criticised for opaque governance structures and excessive family control.</li> <li>Geopolitical Risks: Tensions with North Korea contribute to investor caution, adding a layer of perceived risk.</li> <li>Limited Domestic Liquidity: South Korea’s relatively small investor base can constrain market activity and valuation potential.</li> </ul> By listing in India, Hyundai sought to unlock better valuations for its subsidiary, leveraging the optimism of Indian markets. India’s stock market has a trailing P/E ratio of 24.4, far above South Korea’s Kospi average of 16-17. The Indian market’s appetite for high-growth stories provides a fertile ground for companies like Hyundai to escape the valuation constraints of their home market. A successful IPO could encourage other such conglomerates to follow suit, setting a precedent. While Hyundai India has a robust track record, its future success hinges on navigating key challenges: <ul> <li>Supply Chain Vulnerabilities: Hyundai relies heavily on its Chennai plant, making it vulnerable to disruptions.</li> <li>Intensifying Competition: Domestic rivals like <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword> and MG Motors are making aggressive inroads into the EV market.</li> <li>Policy Risks: The automotive sector’s reliance on government incentives for EVs and hybrids adds a layer of unpredictability.</li> </ul> High valuations come with risks. Hyundai will need to prove that it can sustain its growth trajectory in India, fend off competition from established players like Maruti Suzuki and Tata Motors, and navigate challenges such as supply chain disruptions and regulatory hurdles. If Hyundai successfully capitalises on its strong brand and market leadership, it could not only redefine its value but also serve as a case study for other Korean companies seeking better recognition and valuations in global markets. <h3>Is Hyundai saga a reflection of overheated Indian markets?</h3>The bigger question here is, does Hyundai’s IPO highlights a broader narrative about Indian markets’ premium valuations? With a trailing P/E ratio of 24.4, Nifty 50 index is among the highest in emerging markets. India’s stock markets consistently command a premium due to robust retail participation, strong economic growth prospects, and a burgeoning middle class. While this premium reflects optimism about India’s long-term growth story, it also signals potential risks of overvaluation, particularly in sectors like technology, automotive, and consumer goods. With a record ₹94,017 crore outflow by Foreign Portfolio Investors (FPIs) in October 2024, concerns about overheated valuations are mounting. Sustaining such unprecedented valuations required companies to consistently perform above global averages, and retaining robust earnings growth quarter after quarter remains a challenge in today’s uncertain world. For Hyundai, the high valuation is both an opportunity and a risk. While it underscores investor confidence, it narrows the margin of safety, making the stock vulnerable to corrections during economic downturns. Take for example, the high-profile IPO of Life Insurance Corporation of India (LIC) that raised over ₹21,000 crore. Its listing was met with disappointment as the stock began trading at a 9% discount to its issue price, and subsequent performance has remained subdued. LIC’s post-IPO journey also highlights how inflated valuations can lead to long-term underperformance, as the stock gave only 12% return over the past 30 months when even the Nifty 50 index went up by over 44%. This happens when when the company's growth narrative fails to align with its pricing. Despite being a household name with a dominant market share, LIC's stock has struggled to meet expectations, partly due to concerns about its operating efficiency and the limited use of IPO proceeds for growth initiatives. Make no mistake, Hyundai Motor India’s IPO is a landmark event! It showcases the potential for Korean companies to leverage emerging markets like India for better valuations. It also shows that strong fundamentals can help justify a company such premium valuations even amidst bearish economic prospects. However, it also serves as a cautionary tale about the risks of overvaluation. For Hyundai, the next steps involve proving its long-term growth story, navigating competitive challenges, and maintaining investor confidence. For Indian markets, Hyundai’s IPO underscores the need to balance optimism with realistic expectations as they continue to evolve as global investment hotspots. To sustain the country’s economic narrative as a land of unmatched opportunities, corporate India must work on improving long-term fundamentals and mitigating long-term risks. As global investors watch closely, Hyundai India’s success or failure could shape how international companies view India as a listing destination in the years to come.

Tackling the 'Korean Discount': A deep dive into curious case of Hyundai Motor India's market listing

<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries" meta.hostid="261" meta.entityid="Reliance Industries">Reliance Industries</keyword>, under the leadership of <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword>, showcased its vision for the future during the company’s Annual General Meeting (AGM) that was held today (August 29). During the AGM, <keyword id="19936674" type="General" weightage="20" keywordseo="reliance" source="keywords">Reliance</keyword> laid out ambitious plans that span across its diverse businesses. The conglomerate, which has interests ranging from oil to telecom to retail, is positioning itself as a key player in India’s growth story, with a particular focus on <keyword id="20239522" type="General" weightage="20" keywordseo="technological-innovation" source="keywords">technological innovation</keyword>, energy security, and retail expansion. <h2>Not chasing short-term profits</h2><keyword id="19898589" type="General" weightage="20" keywordseo="ambani" source="keywords">Ambani</keyword>, during his speech, said that Reliance is not merely chasing short-term profits but is dedicated to creating long-term wealth for the nation. He reiterated the company’s commitment to providing high-quality products and services that enhance the lives of Indian consumers. The chairman announced that the company’s board will consider issuing bonus shares on September 5, further rewarding shareholders as Reliance continues to grow. <h2>Transforming into a deep-tech company</h2>A major theme of the AGM this year was Reliance’s transformation into a deep tech company, with advanced manufacturing capabilities at its core. Ambani described this shift as essential to securing a place in the global top-30 companies in the near future. He highlighted the company’s strategic adoption of artificial intelligence (AI), calling it one of the most transformative events in human history. AI, he noted, opens up new avenues to address complex problems, making Reliance a net producer of technology. Reliance has been making significant strides in R&amp;D, with over ₹3,643 crore invested in FY24 alone, taking the total research expenditure to over ₹11,000 crore in the last four years. This investment is driving innovations in various areas, including bio-energy, solar power, green energy, and high-value chemicals. The company has also been active in digital research, filing patents in 6G, 5G, AI, and IoT, among others. Ambani assured that this tech-driven transformation would propel Reliance into a new phase of hyper-growth, multiplying its value in the coming years. <h2><keyword id="20337020" type="General" weightage="20" keywordseo="retail-business" source="keywords">Retail business</keyword> to double</h2>In addition to technological advancements, Reliance Retail, the company’s retail arm, is set to double its business in the next three to four years. Isha Ambani, Director of Reliance Retail, shared that the retail segment recorded a gross revenue of ₹3.06 lakh crore for the financial year ending March 31, 2024, marking a 17.8% growth over the previous year. The retail business has rapidly expanded, with Reliance opening 1,840 new stores in the past year, bringing the total to 18,836 stores across 79 million square feet of retail space. This growth has positioned Reliance Retail among the top-5 global retailers in terms of store count and among the top-10 in market capitalization globally. Isha Ambani emphasised that much of this growth is driven by a focus on smaller towns, where two-thirds of the new stores have been opened. Reliance Retail is also focused on creating high-quality, affordable products through its Consumer Brands business, which has seen the re-launch of popular brands like Campa, Lotus Chocolates, and Sosyo. Mukesh Ambani concluded by underscoring Reliance’s mission to provide energy security to India while also contributing to a cleaner and greener world. As the global landscape becomes increasingly uncertain, he expressed confidence in India’s role as a key growth engine in the global economy. The International Monetary Fund (IMF) projects that India will become the world’s third-largest economy by 2027, surpassing Japan and Germany. Ambani affirmed that Reliance will continue to be a driving force in India’s march toward becoming a developed nation.

Reliance AGM 2024: Company aims to double retail business, Mukesh Ambani says not pursuing short-term profit

<ul><li>Market is not rushing to downgrade <keyword id="17277356" type="General" weightage="90" keywordseo="jio-fin" source="Orion">Jio Fin</keyword> rivals just yet, despite its deep pockets and ability to disrupt.</li><li><keyword id="2003276" type="General" weightage="70" keywordseo="jio" source="Orion">Jio</keyword> Fin’s aggression in the unsecured loan business will decide how badly rivals will be impacted in times to come.</li><li>Given that cost of funds for JFS is expected to be significantly lower than other NBFCs, it can price its offerings much better than rivals in consumer finance. </li></ul> A behemoth was born on Monday with the listing of the financial services business of <keyword id="6355199" type="General" weightage="80" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword> on the exchanges. With the listing of <keyword id="15323576" type="General" weightage="100" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword>, the obvious question is the impact that this entity will have on other listed financial services players because it will take them head on. The obvious assumption is that companies that currently are in the consumer and MSME lending space will be directly impacted. Jio Fin’s rich parentage and high capital base will be its biggest advantage. The net worth of the newborn is higher than its nearest competitor and this will enable it to build a large loan book much faster. But this may not be enough to win in the marketplace as it is a total novice when it comes to underwriting and execution. The market will closely monitor Jio Fin’s aggression in the consumer finance business before downgrading its competitors. For now, the jury is out. Like all other businesses that Reliance has set foot in, even in financial services the market is expecting two things – scale and mega disruption. The first segment that Jio is set to rock first is the lending space. Jio Financial Services ahead of its listing on 18 August released some details on the structure of the company and businesses it would operate in. Jio Financial Services is not just a systemically important non-banking financial institution but also a core investment company (CIC). The RBI has mandated the conversion of Jio Fin into a CIC and NBFC over the next three months. What this essentially means is that all the other businesses will operate under this holding company as subsidiaries. In time, all the subsidiaries could also be listed. The key businesses that Jio Financial Services will be present include: Reliance Retail Finance, Reliance Retail Insurance Broking, Reliance Payment Solutions, Jio Payments Bank, the Asset Management Company will be a joint venture with Blackrock. Reliance Industrial Investments and Holdings will be the sole beneficiary of the 6.1% stake in Reliance Industries. Jio Information Aggregator Services will pursue the account aggregator business, which is yet to commence. Jio Infrastructure Management Services will offer project management services. The first segment that Jio Fin seeks to aggressively pursue is retail lending. The dominant player in this segment is Bajaj Finance, which offers small ticket loans to consumers to buy consumer durables. This business has been mastered by Bajaj Finance over the last decade and a half by tying up with stores like Vijay Sales and Croma. This is where Jio will strike first. Reliance Retail has over 550 digital stores against 517 stores owned by its two rivals Croma (387 stores) and Vijay Sales (130 stores). In merchant lending, its focus is on financing options for merchants in grocery, digital, fashion and pharma formats. According to Nomura, the focus of its MSME lending business will be better geographic penetration. Jio Fin will seek to meet the borrowing needs of small businesses that often resort to high-interest informal channels for small-ticket loans. The company will enter into secured loans in the medium term. Over a period of time Jio Fin will offer unsecured loans too. Sources in the banking industry believe that the new entrant will disrupt the sector with differentiated and cheaper offerings as it can afford to do it because of its strong capital base. The cost of funds of JFS are expected to be significantly lower than other NBFCs. According to Morgan Stanley, “The consolidated entity is starting with a capital base of Rs 114.1 bn as of March 2023 (Rs 193.5 bn ex-book value of RIL stake). If it were to allocate this capital to the lending business, this would likely result in it being among the largest NBFCs by net worth. While this implies significant capacity to lend, we will need to see the pace and mode of execution (organic/inorganic). Hence, the market will closely watch every move JioFS makes.” While the markets believe that Jio will put technology and analytics at the heart of the business, building data will take time. Also, given the competition in the sector, borrowing by consumers is high and that is also leading to higher delinquencies. Therefore, the franchise that Jio builds will matter more than the scale of the loan book. The other issue that analysts see is the capital base of the new entity. Jio Fin as a consolidated entity has a capital base of Rs 114,100 crore or Rs 1.14 trillion as of March 2023 (Rs19,350 crore ex-book value of RIL stake). According to Nomura, if Jio Fin were to allocate this capital to the lending business, this would likely result in it being among the largest NBFCs by net worth. “While this implies significant capacity to lend, we will need to see the pace and mode of execution (organic/inorganic). Hence, the market will closely watch every move JioFS makes,” the report adds.

Will Jio Fin follow the retail, telecom model and disrupt the financial services sector?

<ul><li>Chairman <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, with a net worth of $72.4 billion, is leaving no stone unturned ⁠— whether it is in adding physical stores or technological might for <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword>.</li><li>The RIL stock has gained 25.8% this year so far , analysts expect a lot more from RIL in the next few months.</li><li>While the big-ticket fundraising by Reliance <keyword id="2003276" type="PERSON" weightage="20" keywordseo="Jio">Jio</keyword> has caught the market’s fancy, the next round of unlocking potential value is likely to come from the retail vertical set for an IPO.</li><li>While a deal to buy out Kishore Biyani’s Future Retail is being worked out, here’s a look at the size and scope of Ambani’s existing retail unit, which is a giant in its own right. </li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/">Business Insider.</a></li></ul>According to Reliance Industries’ annual report, the retail vertical sold 20 million electronic units, 160 million garments, 2.6 billion units of grocery among other things last financial year. Reliance is already the country’s largest retail chain but Chairman Mukesh Ambani ⁠— with a net worth of $72.4 billion ⁠— wants more and he is leaving no stone unturned, whether it is in adding physical stores or technological might (including the reach and scale of WhatsApp) for its e-commerce platform JioMart. While the big-ticket fundraising by Reliance Jio has caught the market’s fancy, the next round of unlocking potential value is likely to come from the retail vertical, which is also headed for an initial public offering (IPO) soon. While a deal to buy out Kishore Biyani’s struggling Future Retail is being worked out, here’s a look at the size and scope of Ambani’s existing retail unit, which is a giant in its own right. To start with <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword> employs nearly 1.4 lakh people, and has almost 11,800 stores all across India selling everything from food and grocery, consumer electronics, to fashion and lifestyle. Adding Future Retail’s stores would straight away add 1,500 outlets to its network. Profit is a habit for Ambani Reliance Retail revenue and profit is twice as much as it was three years ago. In the last quarter, even with March being a tepid month, Reliance Retail posted an operating profit of ₹2,062 crore, up by 19.8% from the same quarter the previous year. <div type="image" title="retail charts." msid="76954033" hostid="261"></div> In the full year ending March 2020, it has added 1,500 stores and 30% to its total retail space. Reliance Retail saw 640 million footfalls during the year, and has a 125 million registered customer base, up 40% year-on-year. According to the report, the retail venture on an average adds three stores per day. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brands </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Margin (Source: BOB Capital Markets) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Food and Grocery </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Fresh, Reliance Smart and Reliance Market </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer electronics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Digital Jio stores </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.2% 2.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fashion and lifestyle </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Trends, Project Eve, Reliance Footwear, Reliance Jewels and AJIO.com. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24% </td></tr></tbody></table> Consumer electronics has been the big win for retail so far <div type="image" title="reliance revenue chart." msid="76954052" hostid="261"></div> 61% of the retail revenue comes from consumer electronics. “Reliance Retail, being the master distributor for Jio’s telecom services, is a strategically important entity. With 8,100+ Jio stores, the retail business is cleverly capitalising on Jio’s technology platform and moving between brick-and-mortar stores and the e-commerce business,” said a Bank of Baroda Capital Markets report. Essentially, Reliance Retail is not just selling technology, it is also using tech to boost its business Reliance is betting on e-commerce with its much talked about venture JioMart, which currently works on the offline-to-online model with kirana stores and is present across 200 cities. “The roadmap to this journey requires Reliance Retail to establish a complex yet robust physical and digital pan-India infrastructure and neatly weave this network to a smooth, sound and responsive operating system, which will enable Reliance Retail to serve consumers in partnership with traditional retailers,” Reliance’s annual report said. Facebook’s $5.7 billion investment in the company has meant that Reliance Retail and WhatsApp are now in a commercial partnership to accelerate JioMart’s growth. Reliance's various startup investments have been boosting its technological prowess like Haptik in the conversational AI (Artificial Intelligence) space, Fynd in the e-commerce sector, among various other bets in education, cloud, robotics, SaaS (Sofware as a service) and more. All this will take Reliance deep inside India’s heartland Reliance Retail already has extended beyond the big cities of India. “Under the Trends umbrella, retail operates Trends Small Town (a concept addressed to tier-3 and 4 towns). The concept has been well received by customers and has scaled up to 240 stores across 200+ towns in a short time,” said the report. And the tech investments may help it go far deeper and grow much larger. “We expect revenues to surge to ₹3.4 trillion by FY23 (33% of which will come from connectivity),” said the Bank of Baroda Capital Markets report from July. Post-covid retail All eyes will be on retail on the April-June 2020 earnings, as the coronavirus lockdown would have impacted the sales. But Reliance Retail with Mukesh Ambani’s deep pockets is likely to fare better than peers. “Business is re-imagining the store in a post COVID-19 world and reworking its interactions with customers when they come back, how they come back, their shopping journey, checkout and so on. Taking a 360 degree view of the customers, business is strengthening digital commerce and omni-channel capabilities, bolstering its supply chain / fulfillment capacity to handle 10x home delivery,” said Reliance in its annual report. The investments into the company and the planning for a future with new rules of the game have helped the stock <div type="image" title="RIL share (1)." msid="76954116" hostid="261"></div> While the stock has gained 25.8% this year so far ⁠— at a time when the Sensex has fallen 12.5% ⁠— analysts expect a lot more from RIL in the next few months <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Broking firm </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morgan Stanley </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1801 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Angel Broking </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1937 </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-jio-fiber-and-reliance-invit-set-to-raise-over-1-billion-from-abu-dhabi-and-saudi-sovereign-funds-for/articleshow/76888352.cms">Mukesh Ambani is not done – Jio Fiber to get over $1 billion as Abu Dhabi and Saudi sovereign funds are set to invest in Reliance InvIT</a> <a href="https://www.businessinsider.in/tech/news/google-ceo-sundar-pichai-announces-10-billion-investment-in-india/articleshow/76937372.cms">Google will invest $10 billion in India, as CEO Sundar Pichai says India will lead the next wave of innovation</a>

Mukesh Ambani’s next goal seems to be the ‘retail king of India’

The <keyword id="6355809" type="General" weightage="20" keywordseo="NCLT" source="Orion">NCLT</keyword> has granted <keyword id="375475" type="General" weightage="20" keywordseo="Future-Retail" source="Orion">Future Retail</keyword> Ltd (FRL) an extension of 90 days for concluding the <keyword id="5961445" type="General" weightage="20" keywordseo="Corporate-Insolvency-Resolution-Process" source="Orion">Corporate Insolvency Resolution Process</keyword> (CIRP) of the company. Allowing FRL's plea the Mumbai bench of the National Company Law Tribunal (NCLT) has extended the deadline to July 15, 2023, for concluding the CIRP of FRL. "... NCLT on April 13, 2023, heard the application and granted the said exclusion of 90 days from CIRP of FRL and consequent extension for completion of CIRP till July 15, 2023," said a regulatory filing from the company. This order was pronounced orally by NCLT on April 13, 2023, and a "written order is awaited", FRL added. The CIRP was initiated against FRL by NCLT on July 20, 2022, following loan default. The Insolvency and Bankruptcy Code (IBC) time frame for resolution is 330 days, inclusive of the time taken for litigation. As per Section 12(1) of the Code, the CIRP shall be completed within a period of 180 days from the date of initiation. However, NCLT may grant a one-time extension of 90 days. The maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days. Last week, FRL informed that they have received an Expression of Interest (EoI) from 49 players, including <keyword id="10926" type="General" weightage="20" keywordseo="Reliance" source="Orion">Reliance</keyword> Retail, Jindal Power Ltd and <keyword id="6367820" type="General" weightage="20" keywordseo="Adani-Group" source="Orion">Adani Group</keyword> for acquiring the assets of FRL. On March 23, 2023, the resolution professional (RP) of FRL invited new expressions of interest, where prospective buyers can bid for the debt-ridden firm "as a going concern or individual cluster or a combination of clusters of its assets", as it failed to attract a resolution plan in over four months. Earlier, it had received EoI and finalised 11 prospective bidders, including Reliance and April Moon Retail, but could not get a resolution plan despite two extensions in the deadline for submissions. The Committee of Creditors had provided two options in the EoI, for which the last date for submission was April 7, 2023. In the first option, the Prospective Resolution Applicant (PRA) could bid for the acquisition of Future Retail as a whole, including its shareholding interest in its subsidiaries. While under the second option, Future Retail's business has been distributed in five clusters diving business, in which PRAs can bid for "any individual cluster or any combination of clusters." As per the invitation, FRL currently has access to 302 leased retail stores spread across 23 states and Union Territories, consisting of 30 large format stores such as <keyword id="6357823" type="General" weightage="20" keywordseo="Big-Bazaar" source="Orion">Big Bazaar</keyword> and <keyword id="17144190" type="General" weightage="20" keywordseo="FBB-stores" source="Orion">FBB stores</keyword> and 272 small format stores. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/even-mild-covid-infection-can-cause-sudden-hearing-loss-study/articleshow/99488945.cms">Even mild Covid infection can cause sudden hearing loss: Study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/pfizers-new-bivalent-mrna-covid-booster-vax-highly-effective-lancet/articleshow/99488979.cms">Pfizer's new bivalent mRNA Covid booster vax highly effective: Lancet</a>

NCLT grants 90 days extension to Future Retail for concluding insolvency

<ul><li>The demerger of <keyword id="15323576" type="General" weightage="20" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword> (JFS) in the coming months and listing on the stock exchanges is a ‘key moment’ for the Reliance Industries’ stock. </li><li>The JFS demerger is expected to act as a catalyst that the parent Reliance Industries was missing, which is evident from the sagging stock price. </li><li>JFS’ entry could also prove to be a challenge to existing players in the space like Bajaj Finance, Paytm and PhonePe, and a successful take off could also result in attrition at banks and non-banking financial companies (NBFC).</li></ul>The <keyword id="17044379" type="General" weightage="20" keywordseo="demerger-of-jio" source="Orion">demerger of Jio</keyword> Financial Services (JFS) in the coming months and listing on the stock exchanges is a ‘key moment’ for the Reliance Industries’ stock, according to analysts at Nomura. Strong fundamentals and business outlook aside, shares of Reliance Industries (RIL) have gone nowhere since March last year. After hitting a fresh 52-week low in March this year, RIL shares are still down over 10% in 2023. The JFS demerger could be just what the parent’s shares need – value unlocking. The JFS demerger is expected to act as a catalyst that the parent Reliance Industries has been missing. “The listing and value unlocking from RIL’s financial services business in the coming months will be a key event for the stock,” said Nomura in its latest note, adding that the decline in Reliance’s shares is due to “index-related sell-off”. According to the terms of the demerger announced in October last year, all existing shareholders of Reliance Industries will get one share in JFS for each share held in the parent company. The company has now <a href="https://www.businessinsider.in/business/corporates/news/ril-calls-for-shareholder-creditor-meeting-to-approve-demerger-of-financial-services-arm/articleshow/99116790.cms">called</a> for a meeting of creditors and shareholders on May 2 for the requisite approvals. JFS is expected to list in September this year. “As JFS scales up, it can drive value unlocking given higher multiples for peers in these industries,” Nomura said. Jefferies has pegged the valuation of JFS in the range of ₹90,000 crore to ₹1.5 lakh crore, with each share of JFS valued at ₹179 in the brokerage’s base case scenario. Demerger to help JFS ‘dominate’ the industry Looking beyond the benefits for RIL’s shares, the JFS demerger will also help the financial services business attract investors and challenge existing players in the sector like Bajaj Finance and Paytm. “The demerger would help the financial services business to attract different sets of investors, strategic partners and lenders having specific interests in the financial services business,” Nomura added. Analysts at Jefferies underlined that JFS would be able to leverage the large distribution network, customer base and deep pockets of Reliance to take on existing players like Bajaj Finance, Paytm and PhonePe, among others. It will also allow JFS to emerge as the fifth largest financial services company in terms of net worth. Reliance has already made several moves to give JFS the best possible start – this includes bringing in KV Kamath, the former non-executive chairman of ICICI Bank, as its chairman. Subsequently, Kamath hired a former ICICI Bank talent, Manish Singh, to help him build a team as JFS draws closer to launch. Analysts are already watching for attrition at banks and non-banking financial companies or NBFCs. JFS to focus on consumers and merchants Leveraging Reliance’s wide reach in consumer and retail segments thanks to Reliance Jio and Reliance Retail, JFS is expected to focus on consumers and merchants as it kicks off its innings post the demerger. “JFS' key advantage will be low funding cost/ better access on the back of the group's high credit rating and ownership of 6.1% stake in RIL,” said Jefferies. Reliance’s retail arm reported<a href="https://www.businessinsider.in/business/corporates/news/reliance-retails-q3-net-profit-up-6-2-at-2400-crore-finance-costs-depreciation-weigh/articleshow/97179758.cms"> 201 million footfalls</a> across its network of 17,225 stores in Q3, which is an increase of nearly 26% year-on-year. Its telecom arm, Reliance Jio, has been the market leader for several months now, with a total subscriber base of 426 million as of January 2023. This gives JFS a strong pool of consumers to dip into. The recent acquisition of<a href="https://www.businessinsider.in/business/corporates/news/reliance-retail-to-acquire-wholesaler-metro-cash-carry-for-2850-crore/articleshow/96415905.cms"> Metro Cash &amp; Carry</a> will also give the company access to 3 million merchants, of which 1 million are frequent buyers. Upcoming Reliance AGM could lay down the blueprint of JFS strategy Reliance is expected to lay down the blueprint of its JFS strategy in detail at its upcoming annual general meeting (AGM), likely in August. This is ahead of the expected listing of JFS in September this year. “While significant efforts are needed to scale the financials business, given RIL’s robust execution, capacity to invest, industry-leading retail infrastructure and leading market share across the retail and telecom industry, it appears likely that RIL will dominate the industry,” said the analysts at Nomura, expressing their optimistic outlook. On the whole, analysts are bullish overall on RIL’s prospects and the JFS demerger, which has earned the company a stock price upgrade from analysts at Jefferies – to ₹3,100 from ₹3,060 earlier. Analysts at Nomura have given a target price of ₹2,850. The recent price correction has also prompted the analysts at JP Morgan to say that this is an<a href="https://www.businessinsider.in/stock-market/news/reliance-shares-down-22-from-all-time-high-attractive-entry-opportunity-says-jp-morgan/articleshow/98725589.cms"> “attractive entry opportunity”</a>. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/reliance-shares-down-22-from-all-time-high-attractive-entry-opportunity-says-jp-morgan/articleshow/98725589.cms">Reliance shares down 22% from all-time high: Attractive entry opportunity, says JP Morgan</a> <a href="https://www.businessinsider.in/finance/banks/news/loan-growth-showing-signs-of-reversal-from-cyclical-highs-but-asset-quality-to-remain-healthy/articleshow/99245377.cms">Loan growth showing signs of reversal from cyclical highs, but asset quality to remain healthy</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-hcl-tech-amongst-top-picks-of-analysts-heading-into-the-q4-earnings-season/articleshow/99235686.cms">TCS, Infosys, HCL Tech amongst top picks of analysts heading into the Q4 earnings season</a>

Jio Financial Services demerger and listing a ‘key moment’ for Reliance stock

<keyword id="10926" type="General" weightage="100" keywordseo="reliance" source="Orion">Reliance</keyword> Consumer Products Limited, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited, on Tuesday announced a strategic partnership with Sri Lanka-headquartered <keyword id="16311795" type="General" weightage="80" keywordseo="maliban" source="Orion">Maliban</keyword> Biscuit Manufactories (Private) Limited (Maliban). Maliban, a biscuit manufacturer, is well known for last 70 years for its range of quality products including biscuits, crackers, cookies and wafers. In addition, the company has expanded its products reach to global markets and exports to over 35 countries across five continents. "With a leading market position, Maliban has deep-rooted heritage and credibility. With this strategic partnership between RCPL and Maliban, we will not only be strengthening our FMCG portfolio through a great brand but will also be able to offer an excellent value proposition through quality products to our Indian consumers," said <keyword id="617730" type="General" weightage="50" keywordseo="isha-ambani" source="Orion">Isha Ambani</keyword>, Executive Director, Reliance Retail Ventures, in a release. "Being the custodian of several widely known global brands in India, Reliance is well-positioned to further expand the excellent consumer equity and reach that Maliban has built over 70 years," Isha Ambsaid. The vision of Reliance's FMCG arm is to bring to Indian consumers a bouquet of domestic and globally recognised consumer brands and product choices that offer superior value proposition with exceptional quality. It launched its packaged consumer products brand, 'Independence' in December 2022 and is creating a distinct and dedicated retail distribution network for its fast-expanding FMCG portfolio. <keyword id="6865480" type="General" weightage="50" keywordseo="rrvl" source="Orion">RRVL</keyword>, through its subsidiaries and affiliates, operates more than 16,500 own stores and partners with over 2 million merchants across Grocery, Electronics, Apparel, Pharmacy, lingerie, home and furnishing, beauty and personal care. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/godrej-consumer-products-q3-profit-rises-3-5-to-546-crore/articleshow/97485680.cms">Godrej Consumer Products Q3 profit rises 3.5% to ₹546 crore</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/india-emerged-as-global-ma-hotspot-in-2022-bain-company-report/articleshow/97490051.cms">India emerged as global M&amp;A hotspot in 2022: Bain &amp; Company report</a>

Reliance Consumer Products enters into strategic agreement with Sri Lankan biscuit maker Maliban

<ul><li>In its recent earnings report, Reliance said that <keyword id="3421090" type="PERSON" weightage="20" keywordseo="Ajio">AJIO</keyword> has scaled new highs with 4x growth in orders from pre-COVID levels.</li><li>AJIO’s latest numbers show that it’s levelling up to Myntra while moving fast ahead of other competitors like Tata Cliq, Snapdeal and Koovs.</li><li>However, Flipkart and Myntra continue to hold 60% market share in online fashion retail, according to a Bank of America report.</li><li>Currently, fashion and lifestyle account for just 9% of the total retail sales of Reliance.</li></ul>In April 2016, at the Lakme Fashion Week, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s Reliance announced its big foray into fashion e-commerce with AJIO.com. The segment that has been crowded by the likes of Flipkart, Myntra (along with Jabong back then), Amazon, and others, left little room for AJIO to outshine the others. But the rise of e-commerce, especially as it spreads into rural India has brought about changes in the fashion e-commerce landscape. AJIO, which up until a year ago, wasn’t even counted among the frontrunners is scripting a story of resurgence now. AJIO’s fast-tracked growth “AJIO scaled new highs with 4x growth in orders from pre-COVID levels. Its quarterly revenue run rate is now equivalent to full last year’s revenue,” said Reliance during its earnings results on October 30. AJIO’s latest numbers show that it’s levelling up to Myntra while moving fast ahead of other competitors like Tata Cliq, Snapdeal and Koovs. While AJIO’s website visits are higher than Myntra, it lags behind in app downloads and users. <div type="image" title="Group 2" msid="78997632" hostid="261"></div> <div type="image" title="Group 2 copy" msid="78997646" hostid="261"></div> AJIO’s growth can be seen during lockdown when it began to see a spike in the number of app downloads. <div type="image" title="ajio vs myntra downloads" msid="78996631" hostid="261"></div> What’s working for AJIO Reliance is aggressively pushing ahead with its retail and e-commerce ambitions, and fashion e-commerce is set to play a substantial role. Currently, fashion and lifestyle account for just 9% of the total retail sales of Reliance. Analysts at Goldman Sachs believe that within e-commerce, RIL’s online GMV will reach $35 billion in FY25E with a 31% market share. And for that, Reliance is focusing on grocery and apparel segments with JioMart and AJIO. “RIL’s retail business outperformed peers last quarter and we expect this trend to continue given its omni channel offering driving market share wins,” said the Goldman Sachs report specifically pointing out the download trends of both JioMart and AJIO. <div type="image" title="reliance revenue chart." msid="78996641" hostid="261"></div> For AJIO’s growth, Reliance has opted for the omnichannel approach where the e-commerce site is riding on the inventory of Reliance Trends. “AJIO helps strengthen RIL’s O2O (offline-to-online) capabilities through in-store couponing, aisle kiosks. It does direct deliveries from 350 Trends and 70 Trends Footwear stores,” said the report by Bank of America. The platform has also enabled facilities like ‘Drop at Store with Cash Refund’ and ‘Pick at Store’ while also integrating the endless aisle kiosks where customers can even browse and order products that aren’t currently available in the store. With the deep pockets of Reliance, AJIO has also been able to offer great discounts while also making way for exclusive marketing strategies like the ‘Sneakerhood sale’ on AJIO. The platform has also focused on bringing on board luxury brands. “It offers over 2,50,000 styles of curated collections across its own brand and 1,400+ national and international brands,” said Reliance’s annual report. Resurgence in Indian e-commerce Indian e-commerce has seen multiple stories of resurgence with a focussed approach with the most popular one being that of Snapdeal, which has bounced back and how, to be India’s third largest e-commerce platform while also solidifying its presence in Tier 2 and Tier 3 markets. However, when it comes to the fashion category, AJIO’s growth will still see hurdles especially as it faces tough competition from the bigwigs like Flipkart and Myntra. “While AJIO is gaining traction, we believe competition is stiff in the online fashion market with Flipkart’s Myntra/Jabong controlling 60%+ of the market,” believe analysts at Bank of America. But the potential remains immense – According to McKinsey’s State of Fashion 2020 report, the Indian clothing market will be worth $53.7 billion in 2020, making it the sixth largest globally. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-stock-tanks-over-7-post-earnings-to-lowest-in-3-months-heres-what-brokerages-are-saying/articleshow/78996203.cms">Reliance stock tanks over 7% post earnings to lowest in 3 months — here's what brokerages are saying</a>

Reliance-backed AJIO is riding the Indian e-commerce wave — poses tough competition to Myntra

<ul class="summary-list"><li>Nearly 20 million adults in America are planning to buy <keyword id="2721952" type="PERSON" weightage="60" keywordseo="crypto">crypto</keyword>currency over the next year, a study by crypto exchange Gemini found</li><li>The investor population in the <keyword id="5290028" type="UNKNOWN" weightage="60" keywordseo="cryptocurrency-market">cryptocurrency market</keyword> could nearly double over the next 12 months. </li><li>The next wave of crypto buyers is also likely to skew older than current holders, with an average age of 44. </li></ul>The ranks of <keyword id="6416579" type="UNKNOWN" weightage="60" keywordseo="Retail-Investors">retail investors</keyword> in the cryptocurrency market look set to swell over the next year with nearly 20 million American adults planning their entrance into it, according to a study by <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite" id="docs-internal-guid-6bdb8120-7fff-fba3-1b1a-3f9d988e16bb">crypto</a> exchange platform Gemini. The firm looked into the "crypto-curious audience," which it defines as people who don't own cryptocurrency but indicate either wanting to learn more about it or who are planning to buy it soon. Among its findings, about 13% of adults in the US plan to buy cryptocurrency in the next 12 months and that figure translates to 19.3 million people. That amount of Americans picking up <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite" id="docs-internal-guid-ecd7ce62-7fff-2236-2690-4a6234e011e5">cryptocurrency</a> would nearly double the current population of investors, Gemini said. "Given what we know about the demographics of the crypto-curious audience, the profile of the average crypto holder could also soon be changing in a very welcome way," said the firm, which based its State of US Crypto Report on a total sample of 3,000 people ranging from 18-65 years in age with $40,000 or more in household income. The snapshot of retail investors arrives at a time of growing institutional interest and exposure to <keyword id="2420795" type="PERSON" weightage="60" keywordseo="cryptocurrencies">cryptocurrencies</keyword>, with Gemini calling interest in crypto, and its earning potential "higher than ever." This year, <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">Bitcoin</keyword> <a href="https://markets.businessinsider.com/currencies/news/bitcoin-trillion-market-cap-milestone-faster-amazon-apple-microsoft-google-2021-4-1030302376?utm_source=markets&amp;utm_medium=ingestgest">sprang above $1 trillion in market capitalization</a> and topped $64,000, with that move taking place the same day <a href="https://markets.businessinsider.com/stocks/coin-stock">Coinbase</a>, the largest cryptocurrency exchange in the US, began trading as a public company. Electric vehicle maker<a href="https://markets.businessinsider.com/stocks/tsla-stock"> Tesla</a> in February said it invested $1.5 billion in bitcoin and CEO Elon Musk said it would<a href="https://www.businessinsider.com/elon-musk-tweets-you-can-buy-a-tesla-with-bitcoin-2021-3?utm_source=markets&amp;utm_medium=ingestgest"> start accepting bitcoin as payment for its vehicles. </a> Meanwhile, MoneyGram said Wednesday customers will be <a href="https://markets.businessinsider.com/currencies/news/moneygram-coinme-atm-bitcoin-buy-sell-crypto-with-cash-2021-5-1030422546">able to purchase bitcoin</a> with cash from its thousands of physical locations, and <a href="https://markets.businessinsider.com/stocks/pypl-stock">PayPal</a> started <a href="https://www.businessinsider.com/paypal-crypto-merchant-payments-bitcoin-ether-litecoin-cryptocurrency-finance-schulman-2021-3">allowing US consumers to use their cryptocurrency</a> holdings to pay at millions of its online merchants. The "crypto-curious" group comprises 63% of American adults and has the potential to disrupt the profile of the so-called average crypto holder, said Gemini. Its study showed women account for 53% of people interested in getting into crypto soon. "The next wave of crypto buyers is also likely to be slightly older than current holders -- with an average age of 44," and are likely to have slightly less money to invest than current crypto holders. Gemini said its data show that the "average" cryptocurrency owner is a 38-year-old male who makes roughly $111,000 a year. <a href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/investments-in-crypto-hit-17-billion-in-the-first-six-months-of-2021/articleshow/83740327.cms">Investments in crypto hit a new record of $17 billion, but Indian funds are yet to jump on the bandwagon</a> <a href="https://www.businessinsider.in/cryptocurrency/news/indian-cryptocurrency-exchange-wazirx-has-listed-shiba-inu-tokens-for-trading-in-indian-rupees/articleshow/82731429.cms">Chiacoin claims to be an eco-friendly cryptocurrency — here's how it works</a> <a href="https://www.businessinsider.in/cryptocurrency/news/here-is-why-a-ban-on-cryptocurrencies-may-not-be-even-possible/articleshow/82741310.cms">Is a ban on cryptocurrencies even possible?</a> <a href="https://www.businessinsider.in/cryptocurrency/news/latin-america-and-south-asia-show-two-ends-of-the-crypto-regulatory-spectrum/articleshow/83638437.cms">Even as Latin America embraces Bitcoin, Southeast Asia is clamping down on cryptocurrencies</a>

20 million adults could dive into the cryptocurrency market over the next year, nearly doubling today's retail investor base, says crypto exchange Gemini

Hello!Welcome to this weekly roundup of stories from Insider's Business co-Editor in Chief Matt Turner. <a href="http://newsletter.businessinsider.com/join/4np/insider-weekly">Subscribe here to get this newsletter in your inbox every Sunday.</a>What we're going over today:<ul><li>Travis Kalanick's stealth $5 billion startup <a href="https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4">CloudKitchens is Uber all over again</a>.</li><li>Amazon's most senior executives <a href="https://www.businessinsider.com/amazon-executive-exodus-vps-other-senior-people-leaving-2021-4">are leaving in droves.</a> </li><li>A deep dive into the <a href="https://www.businessinsider.com/inside-wall-street-quant-recruiting-2021-4">secretive world of Wall Street quant recruiting.</a> </li><li>Capitol Hill staffers are burned out, traumatized, and <a href="https://www.businessinsider.com/congress-capitol-hill-staff-burnout-remote-work-january-6-insurrection-2021-4">heading for the exits.</a> </li><li>Search over 350 pitch decks that <a href="https://www.businessinsider.com/searchable-database-of-business-insider-pitch-decks-2020-7">startups including Uber, Postmates, and Airbnb used to raise millions</a>.</li></ul><a href="https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4"></a>What's trending this morning:<ul><li>The US economy is barreling toward a boom: It's going to be <a href="https://www.businessinsider.com/us-economy-barreling-toward-biggest-boom-since-1984-2021-4">bigger, faster, and weirder than you expect</a>.</li><li>Jamie Dimon wants staff back in the office: The JPMorgan CEO expects the bank's employees <a href="https://www.businessinsider.com/jpmorgans-ceo-jamie-dimon-return-to-office-instagram-face-masks-2021-4">back in the office "within weeks" and going maskless by October</a></li><li>The New York Times preps <keyword id="621414" type="PERSON" weightage="60" keywordseo="Newsletter">newsletter</keyword> push: Substack is trying to <a href="https://www.businessinsider.com/new-york-times-responds-to-the-substack-boom-2021-4">poach its top writers with advances worth hundreds of thousands</a>.</li><li>Walmart's healthcare leaders exit: The <keyword id="6354851" type="UNKNOWN" weightage="60" keywordseo="retail">retail</keyword> giant is <a href="https://www.businessinsider.com/walmarts-health-clinics-are-stalling-as-leaders-depart-2021-4">tapping the brakes on an ambitious clinic rollout</a>.</li><li>New York's $7 billion cannabis industry: It will be <a href="https://www.businessinsider.com/list-top-cannabis-executive-advocates-regulators-new-york-2021-4">shaped by these 27 power players</a>.</li><li>Want to buy a home right now? You might have to <a href="https://www.businessinsider.com/single-family-rental-investors-squeeze-regular-homebuyers-cerberus-invitation-homes-2021-4">outbid a $50 billion private equity firm first</a>.</li></ul><h3><a href="https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4">CloudKitchens is Uber's carbon copy</a></h3>Hundreds of employees left Travis Kalanick's ghost-kitchen startup this year - in an exodus that reflects long-simmering tensions about leadership, secrecy, and pay. Inside the organization, people <a href="https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4">described an alpha-male society</a> reflective of Kalanick's first startup:The Kalanick leading CloudKitchens was not changed, humbled, or reformed. He was the same Kalanick who in just a few roller-coaster years had turned Uber into a global juggernaut - at one point the world's most valuable tech startup - by barreling full speed ahead and ultimately crashing out.In one important way, though, Kalanick has changed. The man leading CloudKitchens is incredibly concerned with secrecy and preventing any challenges to his control, and he has designed the company with that in mind.The result is a business that looks like the old Uber - but without the guardrails. Without a VC-filled board, Kalanick, who reportedly owns about half the company, enjoys free rein to pursue his vision of reinventing the restaurant business.Read up on Kalanick's new startup:<ul><li><a href="https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4">Travis Kalanick's stealth $5 billion startup, CloudKitchens, is Uber all over again, ruled by a 'temple of bros,' insiders say</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/uber-ceo-dara-khosrowshahi-cleaned-uber-toxic-culture-travis-kalanick-2021-4">Inside Uber CEO Dara Khosrowshahi's 4-year quest to root out the toxic culture that nearly sank the world's most valuable startup</a></li><li><a href="https://www.businessinsider.com/how-first-time-founders-got-screwed-by-dirty-term-sheets-2021-4">Startup founders, VCs, and lawyers open up about the dark world of dirty term sheets, where shrewd investors screw them over</a> </li></ul><h3><a href="https://www.businessinsider.com/amazon-executive-exodus-vps-other-senior-people-leaving-2021-4">Amazon's executive exodus</a></h3><a href="https://www.businessinsider.com/amazon-executive-exodus-vps-other-senior-people-leaving-2021-4"><div type="image" title="Amazon Jeff Bezos" height="2250" width="3000" msid="82244834" hostid="261"></div></a>The company is going through the largest leadership shakeup in its history, with VPs citing better pay, bigger roles, and Amazon's slowing culture as their reasons for leaving. <a href="https://www.businessinsider.com/amazon-executive-exodus-vps-other-senior-people-leaving-2021-4">More than 45 top executives have left</a> since the start of 2020:Given that Amazon has about 350 vice presidents, that's a turnover rate of more than 10% in the vice-presidential level and above - rare for a company that once prided itself on the loyalty and long employment history of its most valued senior leaders. It's one of the most dramatic management upheavals in company history. As Amazon looks to a post-Bezos era, the departures present incoming CEO Andy Jassy with the dual challenge of having to work with less familiar faces while maintaining the company's unique culture."The risk-reward isn't there for big leaders to stay at Amazon right now," one former Amazon executive who left in the past year told Insider. "It would not surprise me if 2021 has more VP attrition than 2020."See what former employees said about the Amazon exodus:<ul><li><a href="https://www.businessinsider.com/amazon-executive-exodus-vps-other-senior-people-leaving-2021-4">Amazon's most senior execs are leaving in droves, citing stalling growth, higher pay elsewhere, and a tough culture - setting the stage for Andy Jassy's first major challenge as CEO</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/amazon-leaked-memo-focus-performance-review-unregretted-attrition-2021-4">Internal memo shows one tactic Amazon uses to force a set number of employees out every year</a></li><li><a href="https://www.businessinsider.com/microsoft-companies-could-buy-acquisitions-nuance-startups-2021-4">22 companies Microsoft is most likely to acquire next</a> </li></ul><h3><a href="https://www.businessinsider.com/inside-wall-street-quant-recruiting-2021-4">Wall Street's secretive world of quant recruiting</a></h3><a href="https://www.businessinsider.com/inside-wall-street-quant-recruiting-2021-4"><div type="image" title="wall street quant hedge fund recruiting 4x3" height="1800" width="2400" msid="82244837" hostid="261"></div></a>The market for quant and data-science specialists on Wall Street has never been hotter, but <a href="https://www.businessinsider.com/inside-wall-street-quant-recruiting-2021-4">the trading firms that employ them are highly secretive</a> - as are the recruiters they work with:"You're OK that I've recorded this call, right?" So said one veteran recruiter who works with proprietary-trading firms before apologizing for his paranoia at the end of a 30-minute conversation. Other headhunters wanted to ensure up front that Insider wasn't secretly recording them (we weren't), and agreed to speak only on the condition of anonymity - that what they said wouldn't be attributed to them or their company. Some would dish about the industry or their competitors, but discussing clients was verboten.Welcome to the secretive world of Wall Street quant recruiting. While secrecy abounds across finance, it's especially prevalent in the world of quantitative trading, where noncompetes in excess of a year, nondisclosure agreements, and lawsuits over defectors are common. Here's what more than two dozen quant recruiters about their competitive, stealthy field:<ul><li><a href="https://www.businessinsider.com/inside-wall-street-quant-recruiting-2021-4">Inside the secretive world of Wall Street quant recruiting</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/top-headhunters-that-specialize-in-wall-street-quant-recruiting-2021-4">The talent brokers of quant trading: The headhunters at the forefront of Wall Street's systematic-trading and data-science hiring frenzy</a></li><li><a href="https://www.businessinsider.com/wall-street-responds-with-cash-bonuses-as-banker-burnout-mounts-2021-3">Wall Street is bumping junior pay and going on a hiring spree. Here's a rundown of all the special bonuses and raises announced in recent weeks.</a></li></ul><h3><a href="https://www.businessinsider.com/congress-capitol-hill-staff-burnout-remote-work-january-6-insurrection-2021-4">Workers on Capitol Hill have hit a wall</a></h3><a href="https://www.businessinsider.com/congress-capitol-hill-staff-burnout-remote-work-january-6-insurrection-2021-4"><div type="image" title="commitee staffer senate staff" height="1666" width="2222" msid="82244840" hostid="261"></div></a>Congressional staffers at all levels - from fellows to chiefs of staff - <a href="https://www.businessinsider.com/congress-capitol-hill-staff-burnout-remote-work-january-6-insurrection-2021-4">have struggled with burnout,</a> several current and former employees told Insider. They described how remote work obliterated the line between their work and personal lives:"It was the working from home, it was the level of intensity of being a chief of staff, the recent passing of my mother," that led Jose Borjon to look for a job outside the public sector.Even in normal times, working on Capitol Hill is no walk in the park. But after a pandemic, a year of remote work, feverish partisan rancor surrounding the 2020 presidential election, and an unprecedented terrorist attack inside their place of employment, the thousands of congressional staffers who make Congress run are burning out. Badly.Current staff and experts fear the exhaustion and trauma are pushing qualified people out the door, exacerbating the long-running problem of brain drain on Capitol Hill while denying lawmakers talented staff members as they try to tackle some of the most pressing issues to face the country in generations.Get the full scoop:<ul><li><a href="https://www.businessinsider.com/congress-capitol-hill-staff-burnout-remote-work-january-6-insurrection-2021-4">Congressional staffers are burned out and heading for the exits after a hellish year</a></li></ul>Also read:<ul><li><a href="https://www.businessinsider.com/biden-trump-justice-department-criminal-investigation-new-york-georgia-2021-4">Prosecuting Trump does not look like a DOJ priority under Biden's attorney general. But watch Georgia and New York.</a></li><li><a href="https://www.businessinsider.com/donald-trump-florida-mar-a-lago-bedminster-golf-2021-4">Trump plots temporary move from Mar-a-Lago north to New Jersey</a> </li></ul><h2><a href="https://www.businessinsider.com/searchable-database-of-business-insider-pitch-decks-2020-7">Pitch deck library</a></h2><a href="https://www.businessinsider.com/searchable-database-of-business-insider-pitch-decks-2020-7"><div type="image" title="pitchdeck database 2x1" height="834" width="1668" msid="82244844" hostid="261"></div></a>Billions of dollars in venture capital flow every year to startups that can articulate their visions in a way that makes investors see dollar signs.Startups do this by creating pitch decks, or slideshows that meld imagery, hard data, and storytelling to help investors see their potential.For years, Insider has been publishing individual pitch decks to give readers an inside look at startups' business strategies and how they wooed investors to back them.We have now been combined them into a searchable database. Check it out here:<a href="https://www.businessinsider.com/searchable-database-of-business-insider-pitch-decks-2020-7">PITCH-DECK LIBRARY: Search over 350 pitch decks that startups including Uber, Postmates, and Airbnb used to raise millions</a>Lastly, don't forget to <a href="https://www.morningbrew.com/?utm_source=insider&amp;utm_medium=partnership&amp;utm_campaign=insiderweekly_h12021&amp;irclickid=Q303QBR7zxyLTbn0MdV3iVCmUkES-e1ho2DpzQ0&amp;utm_source=impact&amp;utm_medium=affiliate&amp;utm_campaign=10078&amp;irgwc=1&amp;irclickid=Q303QBR7zxyLTbn0MdV3iVCmUkB0rmT1o2DpzQ0&amp;utm_source=impact&amp;utm_medium=affiliate&amp;utm_campaign=10078&amp;irgwc=1ium=affiliate&amp;utm_campaign=10078&amp;irgwc=1">check out Morning Brew</a> - the A.M. newsletter that makes reading the news actually enjoyable.Here are some headlines you might have missed last week.- Matt<ul><li><a href="https://www.businessinsider.com/optumhealth-ceo-plans-to-make-clinics-a-100-billion-business-2021-4">The CEO of UnitedHealth's sprawling health-clinic business shared how transforming the way doctors get paid will help it notch $100 billion in revenue</a></li><li><a href="https://www.businessinsider.com/orion-hindawi-tanium-ipo-cfo-cybersecurity-public-readiness-assessment-2021-4">The CEO of $9 billion-plus Tanium says the company has hired a new CFO to assess the possibility of holding its long-awaited IPO</a></li><li><a href="https://www.businessinsider.com/chenmed-iora-urge-us-allow-new-participants-medicare-direct-contracting-2021-4">Primary-care upstarts ChenMed, Iora, and VillageMD are protesting a US decision to halt applications for a potentially lucrative Medicare program</a></li><li><a href="https://www.businessinsider.com/jpmorgan-nyc-headquarters-design-270-park-avenue-request-proposals-2021-4">We got a peek at JPMorgan's latest plans for its new NYC headquarters, which reveal clues about how the bank views the future of office work</a></li><li><a href="https://www.businessinsider.com/stock-picks-to-buy-now-downtrodden-with-upside-goldman-sachs-2021-4">Goldman Sachs says buy these 19 downtrodden stocks that have badly lagged the S&amp;P 500 this year - but have immense upside potential heading into earnings season</a></li><li><a href="https://www.businessinsider.com/top-tiktok-talent-managers-agents-for-creators-power-list-2021-4">The top 19 TikTok talent managers and agents helping creators turn social-media fame into diversified businesses</a></li><li><a href="https://www.businessinsider.com/human-resources-is-affected-by-systemic-gender-bias-and-discrimination-2021-4">HR was built on bias. Now it's facing an evolution.</a></li><li><a href="https://www.businessinsider.com/docusign-power-players-legal-tech-contracts-ipo-growth-2021-4">13 power players supercharging growth at DocuSign, the e-contracts company on an M&amp;A streak</a></li></ul>

300+ employees have left Travis Kalanick's ghost-kitchen startup, in an exodus that reflects deep tensions over leadership, secrecy, and pay

<ul><li>Credit rating agency CARE ratings has given the retail sector in India a ‘Negative’ outlook. </li><li>With supply chains disrupted, retailers have to innovate quickly and come up with new ways of keeping the supply up. And it’s not going to come for free.</li><li>That’s why <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Retail is betting on the O2O model with its association with Facebook.</li></ul>The Indian <keyword id="188491" type="PERSON" weightage="20" keywordseo="retail-industry">retail industry</keyword> has seen a massive setback because of the coronavirus pandemic. It was already suffering from a consumption slowdown. But ever since the Coronavirus pandemic spread, malls and stores have been shut for over a month indicating worse times ahead. And the situation isn’t getting better anytime soon – not even after lockdown, say experts. Credit rating agency CARE ratings has given the retail sector in India a ‘Negative’ outlook. “The impact on demand, which is expected to remain muted at least for the next three or four quarters, will be more in case of players with presence in non-essential items and luxury segments,” said the ratings agency in its report. However, it believes grocery will prevail as king. “The retailers with presence in essential commodities continue to have some cash flows to support their fixed costs,” said the report. Low consumer spending even after lockdown Because of the coronavirus pandemic, stock markets across the world have crashed, oil prices have seen a record low, and organizations across the world are taking cost cutting measures. So, as the global economy worsens even after the lockdown lifts, consumers are going to be cautious about their spending.In lieu of a global recession, people aren’t going to loosen their purse strings. “After the control of the spread of the coronavirus and post the lock-down period, the spending as well as shopping patterns of the consumers are expected to change significantly. The consumers are likely to curtail their discretionary spending with reduced income in their hands as well as tendency to preserve cash,” said the CARE report. According to a report by Nielsen, here’s how spending will decrease across sectors post Covid-19. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2054940" data-url="https://flo.uri.sh/visualisation/2054940/embed"></div>]]></cdata></div> Supply chain issues The biggest problem that the retail industry faced with the coronavirus lockdown is the complete disruption of their supply chain. With borders sealed and passes required for movement, trucks were seen to be turned off and lined up across highways. So, retailers have to innovate quickly and come up with new ways of keeping the supply up. And it’s not going to come for free. “Operating costs will go up by 30-35% easily for small stores, larger stores will see costs going up by 10-15%,” said <a href="https://www.cnbctv18.com/retail/future-retails-rakesh-biyani-says-new-coronavirus-sop-to-inflate-retailers-cost-up-to-35-5751931.htm">Rakesh Biyani</a>, Future Retail’s Managing Director. He also spoke about how maintaining social distancing at physical stores will also inch up costs. Who will survive the crash? As people are staying in, the demand for groceries are going up. Even after lockdown lifts, people will avoid public spaces and will continue to order online. Online apps are raking in the orders – Bigbasket is currently processing almost 3 lakh orders a day. So, for retail industries to survive they will have to have the “agility to recognize new consumer behaviour and adapt to meet the altered needs,” said the Neilsen report. And how do they go about it? By creating a balanced approach of online and offline. “In such times, the retailers with presence across the retail segments (grocery, apparel, appliances, accessories) as well as who have an omni-channel strategy with presence in both offline and online channels are expected to have a quicker recovery,” said the CARE report. And interestingly, this is what Reliance Retail is betting on after its deal with social media giant Facebook – the O2O model. Jio has made a quiet entry into e-commerce with <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword>. With the association with Facebook, JioMart now aims to use WhatsApp to reach out to consumers, while using kirana stores and its retail prowess for supply. As Reliance chairman <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, he and Facebook founder Mark Zuckerberg are betting on growth in a post-corona world. And both of them have deep pockets to do so. Reliance Retail has over 10,901 stores across the country, and is facing a crisis because of people not visiting stores. Reliance Retail also sells jewellery, apparel and accessories which have come to a stop now. However, even with the consumption slowdown over the past year, Reliance Retail in the third quarter of FY20 posted a 62.32%jump in its pre-tax profit at Rs 2,727 crore. Meanwhile Jio reported ₹13,968 crore standalone revenue from operations, and a standalone net profit of ₹1,350 crore. “The recent tariff hike should still allow Jio’s EBITDA (earnings before interest, tax, depreciation and amortization) to rise 78% YoY [year-on-year] in FY21. Strong telecom and a weaker rupee will offset big cuts in petrochemicals, refining and retail as FY21 EPS rises a small 1.6% YoY,” estimates capital market and investment group, CLSA. Experts too believe that this deal makes for an interesting combination for growth. "The Facebook and Jio deal is the marriage of two superpowers. With the reach and deep pockets that both of them have, it will be a transformational partnership for India. Over the past years Facebook has acquired some very interesting assets like Whatsapp and Instagram. These assets combined with Jio's existing infrastructure make it a very interesting combination,” said Viram Shah, CEO and Co- Founder, Vested Finance, an investment firm. See Also: <a href="https://www.businessinsider.in/india/news/the-ceo-of-54-billion-mahindra-mahindra-pawan-goenka-says-these-four-things-will-be-normal-in-the-post-covid-world/articleshow/75316936.cms">The Managing Director of $54 billion Mahindra &amp; Mahindra, Pawan Goenka, says these four things will be ‘normal’ in the post- COVID world</a> <a href="https://www.businessinsider.in/india/news/home-delivery-of-alcohol-is-illegal-anyone-telling-you-otherwise-is-probably-trying-to-run-a-scam/articleshow/75315790.cms">Home delivery of alcohol is illegal — anyone telling you otherwise is probably trying to run a scam</a> <a href="https://www.businessinsider.in/business/ecommerce/news/from-reliance-jiomart-to-unicorns-and-other-startups-all-line-up-to-serve-kiranas-indias-mom-n-pop-stores/articleshow/75324026.cms">From Reliance’s JioMart to unicorns and other startups all line up to serve kiranas – India’s mom n pop stores</a>

India's retail industry will struggle far beyond the lockdown – but Reliance’s JioMart has the ‘muscle’ to power through

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Reuters/Murad SezerA boy jumps into Bosphorus to cool off in Istanbul, Turkey August 20, 2018.</div></div></div><ul><li>Turkey's economy has most likely dived into a "steep" recession after the lira's recent plunge, according to Capital Economics' Jason Tuvey.</li><li>The Turkish economy was in a weak state even prior to the most recent collapse in the currency, he added.</li><li>Tuvey expects the Turkish economy to contract as much as 4% year-on-year in the final quarter of 2018.</li><li>"Overall, there's no getting away from the fact that the Turkish economy is experiencing a deep downturn." </li></ul>Turkey's ailing economy has most likely plunged into a recession over the last month thanks to <a href="https://www.businessinsider.com/turkish-lira-price-moodys-bank-downgrades-2018-8">the rising crisis with the nation's currency,</a> and a fragile banking sector, according to new research from Capital Economics.On Wednesday, Jason Tuvey, a senior emerging markets economist at the research house told clients in a note titled "Turkey entering a steep recession" that data coming out of the country is indicating pretty clearly that a recession has arrived, and that it will be officially confirmed by the end of the year."The latest Turkish activity data suggest that the plunge in the lira since May, and the associated sharp tightening of financial conditions, has tipped the economy into recession," he wrote.While the lira has been falling since May, issues in Turkey first came to mainstream attention when the lira's slump intensified after the Trump administration <a href="https://www.businessinsider.com/market-news-stocks-drop-monday-turkey-lira-crisis-2018-8">placed a series of sanctions against Turkey</a> in retaliation for its refusal to release Andrew Brunson. Brunson is an American pastor detained by Turkish authorities for his alleged support for the outlawed Kurdistan Workers Party and the Gulenist movement, both of which are accused of being involved in 2016's failed coup against President Erdogan.A falling currency tends to mean rising inflation as the cost of imports increase, and that is just what has happened in Turkey. Even prior to the lira's second collapse after US sanctions, inflation had already hit a 15-year high in July - close to 16%."The latest signs show that higher inflation, coupled with a severe tightening of financial conditions, is filtering through into an abrupt slowdown in economic growth," Tuvey wrote."Hard activity data paint a grim picture of the economy even before the lira's leg down this month," he continued, pointing to industrial production data from the second quarter, which show a contraction of 0.7% compared to 1.8% growth in the first quarter, as the chart below illustrates:<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="Capital Economics" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5b869dd00ce5f538008b5b35-960/screen shot 2018-08-29 at 142103.png"></a>Capital Economics</div></div></div>Added to slowing production numbers, confidence across the economy is tumbling. "Confidence in the construction, retail and services sector has plumbed record low," Tuvey wrote, pointing in particular to the Turksat Economic Confidence Index, which this month gave its worst reading since 2009. Based on past form, Tuvey said, the data is "consistent with the economy contracting by around 3% year on year."Here's the chart:<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="Capital Economics" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5b869ed12154a333008b569a-960/screen shot 2018-08-29 at 142459.png"></a>Capital Economics</div></div></div>Thanks to a strong start to 2018, Turkey's economy is likely to grow at a solid pace over the course of the year, but in the second half, a recession has clearly taken hold, Tuvey concluded."The economy is likely to contract by 2-4% y/y in Q4 of this year and in the first half of 2019. Our forecasts for stagnation in 2019 and growth of 3.5% in 2020 lie towards the bottom of the consensus," he wrote."Overall, there's no getting away from the fact that the Turkish economy is experiencing a deep downturn." <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/samsung-galaxy-note-9-fortnite-new-galaxy-unpacked-2018-8">Everything Samsung just announced - the Galaxy Note 9, Fortnite, and more</a></h3> <div> </div> </div>

You Searched For "deep dive into reliance retail" and got 12 results

Tackling the 'Korean Discount': A deep dive into curious case of Hyundai Motor India's market listing

Deekshith Pinto

Reliance AGM 2024: Company aims to double retail business, Mukesh Ambani says not pursuing short-term profit

BI India Bureau

Will Jio Fin follow the retail, telecom model and disrupt the financial services sector?

Malini Bhupta

Mukesh Ambani’s next goal seems to be the ‘retail king of India’

Sanchita Dash

NCLT grants 90 days extension to Future Retail for concluding insolvency

PTI

Jio Financial Services demerger and listing a ‘key moment’ for Reliance stock

Rounak Jain

Reliance Consumer Products enters into strategic agreement with Sri Lankan biscuit maker Maliban

ANI

Reliance-backed AJIO is riding the Indian e-commerce wave — poses tough competition to Myntra

Sanchita Dash

20 million adults could dive into the cryptocurrency market over the next year, nearly doubling today's retail investor base, says crypto exchange Gemini

Carla Mozée

300+ employees have left Travis Kalanick's ghost-kitchen startup, in an exodus that reflects deep tensions over leadership, secrecy, and pay

Matt Turner,Jordan Parker Erb

India's retail industry will struggle far beyond the lockdown – but Reliance’s JioMart has the ‘muscle’ to power through

Sanchita Dash

Turkey has dived headfirst into a 'steep' and 'deep' recession

Will Martin

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