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Information technology (IT) solutions provider <keyword id="20672329" type="General" weightage="20" keywordseo="orient-technologies" source="keywords">Orient Technologies</keyword> Ltd has filed preliminary papers with Sebi to raise funds through an Initial Public Offering (IPO). The initial share-sale is a combination of a fresh issue of Rs 120 crore and an Offer For Sale of up to 46 lakh equity shares by promoters, according to the Draft Red Herring Prospectus (DRHP) filed on Tuesday. Those offloading shares in the OFS are -- Ajay Baliram Sawant, Umesh Navnitlal Shah, Ujwal <keyword id="20672330" type="General" weightage="20" keywordseo="arvind-mhatre" source="keywords">Arvind Mhatre</keyword>, and Jayesh Manharlal Shah. Proceeds from the fresh issue to the tune of Rs 79.65 crore will be used for funding capital expenditure requirements, Rs 10.35 crore for the acquisition of office premises at <keyword id="19932272" type="General" weightage="20" keywordseo="navi-mumbai" source="keywords">Navi Mumbai</keyword>, and a portion will also be used for general corporate purposes. Over the years, the company has developed deep expertise in creating products and solutions for specialised disciplines across IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services. As of December 31, 2023, Orient Technologies has a diverse clientele spanning both public and private sectors, including industries like Banking, Financial Services, Insurance (BFSI), Information Technology (IT) &amp; ITeS, healthcare, and pharmaceuticals, among others. It has clients such as Coal India, <keyword id="19903244" type="General" weightage="20" keywordseo="mazagon-dock" source="keywords">Mazagon Dock</keyword>, D'Decor, <keyword id="19898114" type="General" weightage="20" keywordseo="jyothy-labs" source="keywords">Jyothy Labs</keyword>, ACG, Integreon, Bluechip, Tradebulls. The company primarily operates in India and has sales and services offices in cities across the country including Navi Mumbai, Pune, Ahmedabad, New Delhi, Bengaluru, and Chennai. Additionally, it has a branch office in Singapore. For fiscal 2022-23, the company's revenue from operations increased to Rs 535.10 crore from Rs 467.44 crore in fiscal 2021-22 and profit after tax rose to Rs 38.30 crore in fiscal 2023 from Rs 33.49 crore in the preceding financial year. Elara Capital (India) Private Ltd is the sole book-running lead manager for the IPO. The equity shares are proposed to be listed on the BSE and NSE. SEE ALSO:<a href="https://www.businessinsider.in/tech/news/indian-tablet-market-down-by-24-9-in-2023-samsung-leads-the-market/articleshow/107878795.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/indian-tablet-market-down-by-24-9-in-2023-samsung-leads-the-market/articleshow/107878795.cms" target="_blank">Indian tablet market down by 24.9% in 2023, Samsung leads the market</a><a href="https://www.businessinsider.in/tech/news/asus-rog-strix-scar-16/slidelist/107873658.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/asus-rog-strix-scar-16/slidelist/107873658.cms" target="_blank">Asus ROG Strix Scar 16 – powerful hardware at a premium</a><a href="https://www.businessinsider.in/tech/mobile/news/xiaomi-14-to-launch-in-india-on-march-7-to-take-on-the-galaxy-s23-and-oneplus-12/articleshow/107841326.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/xiaomi-14-to-launch-in-india-on-march-7-to-take-on-the-galaxy-s23-and-oneplus-12/articleshow/107841326.cms" target="_blank">Xiaomi 14 to launch in India on March 7, to take on the Galaxy S23 and OnePlus 12</a>

Orient Technologies files draft papers with Sebi to mop-up funds via IPO

<ul><li><keyword id="158950" type="General" weightage="20" keywordseo="jyothy-labs" source="Orion">Jyothy Labs</keyword> is modernising its retail strategy, by expanding its sales force, selling directly via e-commerce and more.</li><li>It also increased its geographic footprint, bringing in the Low Unit Pack (LUP) strategy, which helped clock growth in times of rural slowdown.</li><li>The stock is currently trading at a discount in spite of showing better growth than its peers, say analysts. </li></ul>Mumbai-based FMCG company Jyothy Labs (JLL) is on a firm footing and that’s reflecting in the stock’s performance – it has given 48.7% returns in the last one year. The maker of household brands like Pril, Henko, Margo and Ujala has been modernising at a rapid pace and spreading its wings fast and wide. It’s sending its sales force directly to over 1.1 million outlets compared with 8.5 lakh before Covid. Moreover, it has plans to expand this to 1.2 million by the end of the current financial year. “Product innovation and availability of relevant product assortment for general trade, e-commerce, modern trade and distribution expansion will help JLL to continue to gain market share in key categories,” says Sharekhan. It has also doubled its sales force to 3,000 compared with pre-Covid levels. It’s also implementing sales forces automation – app-based order-taking by sales staff vs manual order-taking earlier. “This increases productivity of sales staff, and ensures that orders taken are fulfilled as the sales staff has visibility of distributor stock while taking orders. Consequently, salience of wholesale has been reduced from around 40% to 35% in recent years,” says a report by IIFL Securities. Moreover, the volatility it has been seeing in sales growth since FY18 has steadied in the last seven quarters with top line growth staying steadfastly above 10%. The fast-moving consumer goods (FMCG) company has been able to achieve growth despite input price inflation and slowdown in volume growth, especially in rural India. Apart from its changed quality and quantity of distribution strategy, it has also increased its geographic footprint and adopted a LUP strategy – selling in small packets to counter the stress on buyers due to inflation – which has helped grow its dishwasher category in particular. Sales growth has been steady over the past two years, and should continue to drive growth in future as well, opines IIFL. The blockbuster brands The company, which was set up in 1983, has charted an impressive growth path over the past few decades, evolving from a South-centric, single-product – Ujala – company, to a pan-India player with multiple products across categories. It was able to retain its leadership position in the fabric whitener category, and occupies the second rank in the dishwasher bar category. Mr. White, Morelight and Ujala IDD are already ₹100 crore-plus brands each. And the company is now looking to build scale in the fabric care category. “It expects to achieve double-digit growth in dishwashing in FY24 and gain market share in the fast-growing category. The company aims to strengthen the Margo franchise, which will help increase share of personal care in the company’s portfolio,” says a report by Sharekhan. Margo is a soap brand that the company acquired in 2011. The company’s overall revenue is expected to grow at a compounded annual growth rate (CAGR) of 13-14% over FY23-FY25, Sharekhan says. Where’s the growth? Like most of its peers, the mid-cap stock will also improve its operating margins in the coming quarters. However, stock analysts believe that its margin recovery will be better than its peers, and so will the growth in its top line and bottomline. What’s also different about this FMCG company is that it’s trading at a discount, unlike its peers. “The stock trades at 23 time FY25 PE (price to earnings ratio), nearly half that of other FMCG companies with similar performance. As consistent performance continues, we believe that this discount will narrow,” said IIFL Securities, which maintains its ‘buy’ rating on the stock with a target price of ₹280. The stock is currently trading at ₹246 apiece. Moreover, JLL’s net cash position has swung from negative ₹253 crore in FY20 to ₹283 crore in FY23. Working capital days have reduced from 42 days in FY20 to 29 days in FY23 and have also remained consistent at 27-29 in the last three years. “With stable working capital management and expected improvement in the profitability, the company is likely to generate high cash in the coming years. With limited capex plan, the company will invest behind improving brand prospects and rewarding shareholders with higher dividend payout,” says Sharekhan. The brokerage too has maintained a ‘buy’ rating on the stock with a target price of ₹275. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/the-french-connection-hal-has-most-to-gain-submarines-yet-to-surface-for-mazagon-dock/articleshow/101952765.cms">The French connection: HAL has most to gain; submarines yet to surface for Mazagon Dock</a> <a href="https://www.businessinsider.in/india/news/few-indians-are-giving-up-on-tomatoes-despite-red-hot-prices-subsidies-arent-helping-much-shows-survey/articleshow/101920571.cms">Few Indians are giving up on tomatoes despite red hot prices, subsidies aren’t helping much, shows survey</a>

This FMCG stock is trading at a discount to peers despite growth outpacing rivals

New Delhi, Mar 31 () FMCG firm Jyothy Labs Ltd (JLL) on Tuesday announced Rs 5 crore donation as part of its contribution to provide relief measures for the coronavirus pandemic. A sum of Rs 2 crore has been earmarked for the Kerala CM Fund and Rs 1 crore each to Maharashtra CM Fund, Assam CM fund and Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PMCARES) respectively, JLL said in a statement. "We are facing a crisis of unprecedented nature and it is a time for all of us to contribute to the cause and help those in distress. We have a social responsibility to all our employees and society at large," JLL Chairman and Managing Director MP Ramachandran said in a statement.He further said: "We are doing our small bit towards the national calamity and hope that all of us take individual responsibility in ensuring our safety and safety of those who are working for us tirelessly. We hope that as a society, we will ensure our optimum contribution, both; monetary and non-monetary." RKL SHWSHW

Jyothy Labs announces Rs 5 crore contribution for coronavirus relief

<ul><li>German consumer major enters Rs 5000 crore home coloration market with Schwarzkopf At Home.</li><li>Launches 18 men’s grooming products under Taft brand in the masstige segment. </li><li>To evaluate re-entry into the home and laundry segment at a later date after exiting the space by divesting to partner Jyothy Labs. </li></ul><keyword id="17617001" type="General" weightage="20" keywordseo="german-consumer-goods" source="Orion">German consumer goods</keyword> major Henkel is doubling down on India like many other global companies. Even though it divested its India homecare business to Jyothy Laboratories more than a decade ago, Henkel is now training guns on the hair colour and <keyword id="7991667" type="General" weightage="20" keywordseo="hair-care-market" source="Orion">hair care market</keyword> in India. The company, which already enjoys equity in the professional hair colour market through Schwarzkopf Professional products, is now entering the home colouration market. The hair dye market in India is roughly estimated to be Rs 5000 crore and henkel is eyeing 25% market share over the next few years. Explains Kartik Kaushik, Country Head Henkel Consumer Brands India, “We have launched home coloration products called Schwarzkopf At Home. We have taken the equity in the professional space to the home segment. We have launched two products in this space called Colour Specialist and Simply Colour. We are now looking at launching all our global brands in India.” Globally, Henkel has a large number of brands across categories – hair colouration, hair care, skin care and home care (including laundry and kitchen cleaning brands). Globally, Henkel merged all its consumer divisions last December to create one mega consumer brands company. It is now looking at leveraging the global portfolio after carefully evaluating consumer demand and market size. Like the hair coloration market, the men’s grooming market is also at an inflection point and slated to grow at 8% CAGR over 2023-2028 to $3 billion, according to estimates. Henkel has launched its portfolio of hair care range under the Taft brand. This brand is in the ‘masstige’ segment, which is the fastest growing (segment between mass and luxury). Adds Kaushik, “We have always been interested in India. Now India is the toast of the world. We are now looking at launching all our global brands in India. We have 18 SKUs in hair styling for different kinds of products that include mousse, gels and waxes. We have a vegan formula for our products which connects well with GenZ.” After divesting its laundry business to Jyothy Labs over ten years ago, the German consumer goods major has also evaluated picking up a stake in the Indian company a few years ago. But the deal never happened. With the merger of its laundry and personal care business globally, Henkel is also open to launching brands in the home care segment. Currently, Henkel has licensed some of its home care brands to Jyothy Labs. When asked if Henkel will re-enter the competitive home care segment, Kaushik says: “As the time comes, we will be taking a call. Currently we will focus on hair as it is our strength in India. We have given some of our brands to Jyothy. For the moment, our focus is on hair with all our strengths. We are playing on the innovation part. As the time comes, we will take a call. In India you have to be clear and for us it is important to grow the market right. We are the fastest growing hair colouration market. We will focus on that for now.” Growing with GenZ The company is keen to grow its portfolio of hair care products as there are several white spaces in this market. Henkel’s long-term plan is to stay invested in India and launch products that resonate with the consumers. Going forward it also plans to test products here too as it does in its laboratory in Japan after it acquired Shiseido’s professional business. It has adopted a two-pronged strategy to tap the market in India. While it has tied up with premium retail touchpoints in key metros and Tier I cities, Henkel has tied up with big online retailers to reach maximum number of pincodes. Explains Kaushik, “For us to succeed in India, we had to build a good distribution network. We are tapping the online and quick commerce players to target a higher number of pincodes. We have gotten in the 10 min delivery slots thanks to quick commerce and that has helped us reach really small cities.”

Henkel doubles down on India as hair care market at an inflection point  – to evaluate laundry segment later

<ul><li>India’s benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> edged lower in morning trade on Wednesday amid jittery markets worldwide. </li><li>PSU bank and IT stocks declined in morning trade amid jitters in the US banking sector. </li><li>Both the indices were down 0.3%, with Sensex trading at 61,154 points and Nifty50 at 18,088 points. </li></ul>India’s benchmark indices Sensex and Nifty50 edged lower in morning trade on Wednesday amid jittery markets worldwide. PSU bank and IT stocks declined in morning trade amid jitters in the US banking sector. Both the indices were down 0.3%, with Sensex trading at 61,154 points and Nifty50 at 18,088 points. The top five active stocks were all heavyweights, including HDFC Bank, Reliance Industries, TCS, among others. Top gainers and losers on Nifty50 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top gainers </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Asian Paints </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.12% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindalco Industries </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.65% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.77% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ONGC </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.40% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Unilever </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.75% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JSW Steel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Enterprises </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.62% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Britannia </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.09% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coal India </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.61% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bajaj Finance </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.03% </td></tr></tbody></table> Source: NSE, as on May 3, 2023 Earlier on Tuesday, Sensex closed 0.4% higher while Nifty50 gained 0.46% led by energy, metal and IT stocks. Gold prices spiked amid mounting growth concerns around the world. Gold gained 1.41% to cross the ₹60,000 level once again to close at ₹60,605 per 10 grams. On the other hand, crude oil prices fell sharply, with Brent crude hovering around $75.5 per barrel, down from the $79 levels. The US Fed’s FOMC is also expected to announce a 25 basis point rate hike this week. <cmsannotation type="cmsannotation" annotationid="Global markets feel the jitters" comment="subhead" text="Global markets feel the jitters">Global markets feel the jitters</cmsannotation> Mounting risks of a contagion in the US’ regional banking sector has made investors jittery – two banks, PacWest Bancorp and Western Alliance both fell by over 25% on Tuesday. The sell-off was visible in the wider markets as well, with Dow Jones falling by 1.1% while S&amp;P 500 was down 1.2%. The tech-heavy Nasdaq fell 1.1%. Asian markets were largely in the red, with Hang Seng falling the most at 1.6%, followed by KOSPI which was down 0.9%. Taiwan Weighted fell 0.5%, while Nikkei 225 rose 0.1%. The Shanghai Composite, on the other hand, was up 1.1%. <cmsannotation type="cmsannotation" annotationid="Stocks to watch" comment="subhead" text="Stocks to watch"><keyword id="73648" type="General" weightage="20" keywordseo="stocks-to-watch" source="Orion">Stocks to watch</keyword></cmsannotation> <keyword id="6357147" type="General" weightage="20" keywordseo="tata-steel" source="Orion">Tata Steel</keyword>: The Tata Group company reported 84% on year decline in consolidated net profit at ₹1,566 crore in March quarter while revenue from operations dropped 9.2% to ₹62,961 crore. <keyword id="105382" type="General" weightage="20" keywordseo="ambuja-cements" source="Orion">Ambuja Cements</keyword>: The cement manufacturer reported a standalone net profit of ₹502 crore in the March quarter, seeing an increase of 1.6% YoY, with restructuring costs impacting the profitability. Revenue grew 8.4% YoY to ₹4,256 crore, while volumes grew 8% during the quarter. Bharti <keyword id="15491" type="General" weightage="20" keywordseo="airtel" source="Orion">Airtel</keyword>: The telecom operator has merged its operations of Bharti Airtel Lanka with Dialog, a subsidiary of Malaysian multinational telecommunications conglomerate Axiata Group Berhad. The move will give the company a larger user base in Sri Lanka. Fino Payments Bank: The company has reported 25% growth in March quarter net profit at ₹22 crore while total income rose 13% to ₹323 crore. Earnings today: Titan, Adani Wilmar, Bajaj Consumer Care, Godrej Properties, Tata Chemicals, MRF, ABB India, Havells India, Jyothy Labs, KEC International, Sula Vineyards, Anupam Rasayan are among companies to report their quarterly earnings today. SEE ALSO: <a href="https://www.businessinsider.in/investment/news/silver-may-offer-an-attractive-investment-option-as-china-reopens/articleshow/99944101.cms">Silver on an upswing – The metal may offer an attractive investment option as China reopens</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-total-gas-reports-8-rise-in-fy23-net-profit-to-546-croreannounces-plans-to-expand-ev-charging-points-to-3000/articleshow/99936234.cms">Adani Total Gas reports 8% rise in FY23 net profit to ₹546 crore,announces plans to expand EV charging points to 3,000</a>

Sensex, Nifty50 edge lower in morning trade as PSU bank and IT stocks fall

New Delhi, Feb 1 () The FMCG industry, facing a consumption slowdown, on Saturday welcomed the Union Budget saying that proposed reduction in personal taxes would help drive consumption and the thrust on rural development would revive demand from the segment.
 Companies like Godrej Consumer, Dabur, Britannia Industries, Marico and Jyothy Labs said the special thrust on agriculture, irrigation and rural development should fuel growth in a struggling rural economy, where FMCG growth has slowed down.
 "The Union Budget attempts to activate multiple levers like rural, infrastructure, entrepreneurship and financial sectors to stimulate growth. It remains to be seen which of these will fire and to what extent. We are optimistic about the government's rural agenda and hope that it buoys consumer demand for the FMCG sector," Britannia Industries MD Varun Berry said.
 Terming it as "incremental budget", Dabur India CEO Mohit Malhotra said the government continues to focus on farmers' income and is offering significant sops at the lower end of the spectrum, which will enhance the purchasing power of the consuming class.
 "The big positive takeaways from this year's Budget would be the income-tax relief offered to lower income groups by slashing income tax rates and rejigging income tax slabs to reduce total tax payable by individuals. This would definitely put more disposable income in the pockets of the consuming class, particularly the middle class, which may help push demand for consumer staples," he said.
 However, Malhotra added that "big bold steps" needed to restart economic growth are missing.
 "That said, the fact remains that the government had little room for manoeuvre," he added.
 According to Godrej Consumer Products MD and CEO Vivek Gambhir, expectations from this budget were very high, and it has partially delivered.
 "The positive is that it recognises that spurring consumption is clearly the need of the hour. Some of the measures being introduced should help improve consumer demand incrementally this year in both rural and urban India," he said.
 Gambhir added:" Focused efforts to improve agricultural productivity, together with better target subsidies, are summed up in a 16-point action plan. This should relieve stress in the agrarian economy and boost rural growth prospects for FMCG."
 However, he added that it will take much more to achieve the target of USD 5 trillion economy and double farmer income by 2022.
 "The real litmus test will be the introduction of deeper structural reforms and the timely disbursement and effective on-ground translation of a clear roadmap of change," said Gambhir.
 Expressing similar views, Marico CFO Vivek Karve said, "Reduced personal taxes auger well for consumer goods companies as more disposable income will help drive consumption of branded goods."
 Jyothy Labs Joint Managing Director Ullas Kamath said the Budget seems to be a "sincere attempt" in boosting the much needed demand scenario in both rural and urban economy.
 "The announcements related to revising individual tax structure, proposed 16-point action plan for agriculture and farmers' welfare coupled with the strategy to doubling farmers' income by 2022 is the step in the right direction. We expect overall impact of the budget will boost consumption and revive consumer sentiments," he said.
 According to Parle Products Senior Category Head Mayank Shah, the budget was the "most anticipated one" due to last year's economic depression which burdened many sectors.
 "FMCG has been facing headwinds due to stagnating rural demand. This budget will surely increase the discretionary spending and FMCG will be one of the biggest beneficiaries. The provisions announced by Finance Minister on revision in direct taxation for lower personal income tax liabilities along with emphasis on targeted measures for boosting rural economy will have a twin positive impact on FMCG," he said.
 Emami CFO N H Bhansali said: "Expectation from the Union Budget were not very high, in view of the fact that few important steps have already been taken by the government like the reduction in corporate tax prior to the budget.
 "Looking at the current market scenario, where growth has slowed down, the focus is on stimulating growth rather than fiscal discipline. Accordingly, the Finance Minister has announced many steps for furtherance of agriculture, commerce, industry, services and exports," he said.
 CG Corp Global Executive Director Varun Chaudhary said that mass market brands will benefit post budget as the middle class will have more money in their hands post the income tax reduction.
 "Better agricultural output combined with urban middle class having more money in their pockets will help discretionary food categories," he said. KRH ABM

FMCG industry welcomes Budget, says reduction in I-T slabs to drive consumption

New Delhi, Apr 1 () Only 5 per cent of around 90 lakh trucks across India are plying on the roads at the moment due to shortage of drivers and labourers at loading and unloading points following the nationwide lockdown, thereby severely hampering transportation of goods, according to truckers body AIMTC. The All India Motor Transport Congress (AIMTC) said even after the notification by Union Home Ministry on Sunday allowing movement of non-essential goods during the lockdown, things have not changed at the ground level as many drivers have either abandoned trucks and went to native places, or have moved to stay put at places where basic amenities like food and shelter are available. "There are around 90 lakh commercial vehicles that we represent all across the country with 3,500 state, district and taluka level bodies affiliated with us... What we feel is that only around 5 per cent of them are operating now. These are mainly LPG and other petroleum products carriers and short distance milk tankers," AIMTC Chairman Core Committee and former president Bal Malkit Singh told . He further said vegetable and fruits that are available in the market now transported by farmers through their own means. Singh said before the nationwide lockdown was announced on March 24, there was already partial lockdown as some states have already sealed borders and lakhs of trucks were stranded. "When lockdown was announced, there was a panic situation among drivers fraternity across the country. As a result many drivers abandoned vehicles and went to their native places. Some headed to safer places where basic amenities like food and shelter are available and they don't want to come on the highways at the moment as there are no 'dhabas' or eateries available now," he said. Apart from driver issues, Singh said labour availability is also a big challenge that is also hampering logistics operations in the country. "Truck owners are at home, offices are closed, staff are at home, garages are closed and labourers are not available at loading and unloading points," he said. Singh further said, "in the logistics supply chain, huge manpower is involved. At loading point you need supervisor who would do documentation but with no public transportation available he can't go to loading points at the moment." Besides, he said,"There is also a huge fear factor as staff are unwilling to come out due to coronavirus, and the same is also with drivers." "We have suggested that people who are involved in supply chain must also be given the Rs 50 lakh insurance cover that government has announced for frontline health workers during these trying circumstances. If that happens it can be an incentive for them to come out," Singh said. Moreover, trucks should also be sanitised at every 200 kilomtres and drivers health checked before entering from one state border to another, he added. When asked if things could improve with government interventions, like the home ministry order allowing movement of non-essential goods, he said, "we will have to wait and watch, but the fact is drivers are also human and they are fearful of coronavirus outbreak." Many FMCG companies like ITC, Dabur India, Parle Products, Godrej Consumer Products and Jyothi Labs had said that due to trucks shortage transportation of their goods have been affected during the lockdown which has been imposed to curb spread of coronavirus pandemic. RKL DRR

Lockdown: Only 5 pc of 90 lakh trucks operating; driver, labour shortage hampering logistics: AIMTC

<ul><li>The average purchasing power in India is depleting fast that is likely to affect consumer demand.</li><li>However, benchmark indices Sensex and Nifty have recently hit record levels thanks to a surge in corporate profits, most of which came from cost cutting.</li><li>The sustained fall in household savings, both financial and physical assets like gold or real estate, over the last five years has been worsened by the fall in wages.</li><li>This has led to a sharp fall in consumer confidence and that is bad news for companies looking to sell cars, jewellery, home appliances, and even shares and other financial investments.</li></ul>Forget gross domestic product (GDP) and the high-as-a-kite stock markets. Even the Narendra Modi government likes to <a href="https://timesofindia.indiatimes.com/business/india-business/india-gdp-in-ppp-terms-more-than-bdeshs-govt/articleshow/78671559.cms" data-type="tilCustomLink" target="_blank">cite the country’s purchasing power when cornered</a>. But even that is on a slide, a not-so-merry one. It’s hardly a surprise given the knockout punch that the COVID-19 virus has delivered. Businesses looking to protect their bottomline have laid off a lot of employees, and many of those who still have jobs aren’t earning as much as they used to. On the other hand, <a href="https://zeenews.india.com/markets/sensex-hits-fresh-record-high-tops-44000-level-2325095.html" data-type="tilCustomLink" target="_blank">Sensex has kissed new highs</a> because corporate profits have surged in the latest quarterly statements. However, as Mahesh Vyas from the Centre for Monitoring Indian Economy, a business information firm, pointed out, between July and September 2020, corporate profits grew over 20%, the rebound in wages was just 3.8% after a sharp fall in the preceding quarter. And this is likely to be a continuing trend. As <a href="https://economictimes.indiatimes.com/news/company/corporate-trends/why-companies-profits-have-rebounded-faster-than-wages-during-covid-pandemic/articleshow/79308002.cms" data-type="tilCustomLink" target="_blank">Vyas put it</a>, “The lockdown has taught companies a lesson or two on running business with fewer human resources. These lessons are unlikely to be forgotten.” That’s bad news for companies looking to sell cars, jewellery, home appliances, and even shares and other financial investments. There is more evidence of where the profits are flowing from. All the companies analysed by broking firm Motilal Oswal, put together, saw a decline of 7% in sales but a 16% jump in profit after tax. Simply put, most of the profit came from cost cutting and not a rise in demand. Consumer insights firm Nielsen recently explained the phenomenon. The Indian consumer is trading down in certain segments, those who can are buying larger packs to save money, and opting for more private labels. And that’s visible in the gross margin ⁠— before costs like wages, advertisements and promotion are deducted ⁠— of some of biggest names in consumer products. <table style="width: 233pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:45.0pt;width:129pt">Company</td> <td class="xl64" style="border-left-width: initial; border-left-style: none; width: 104pt;">July-Sep gross margin change (basis points)</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Bajaj Consumer</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-74</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Agro Tech Foods</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-183</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Jyothy Labs</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">128</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">ITC</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-163</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Dabur</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">9</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">HUL</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-128</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Emami</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">55</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Marico</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-163</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Nestle</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">56</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Colgate</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">344</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Godrej Consumer</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-57</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Britannia</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">176</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Varun Beverages</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-149</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Consumer Products</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-269</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Aggregate</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-220</td> </tr></tbody></table>Source: IIFL, Change compared to same period last year Rational people spend more on discretionary items like cars and appliances when they save more. And the larger pessimism is visible in <a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/CCS09102023E6F5FCA08F4C4BAB9F599F5D9DC754.PDF" data-type="tilCustomLink" target="_blank">the consumer confidence data</a>, put out by the Reserve Bank of India (RBI), which is breaking the charts on the wrong side. People do not expect to spend more on non-essential items even in the next one year. <div type="image" title="rbi ccs" msid="79317971" hostid="261" caption="&amp;lt;p&amp;gt;Indian consumer&amp;#39;s expectation of spending on non-essential items is abysmally low.&amp;lt;/p&amp;gt;"></div> The Indian consumer’s ability or willingness to spend had started eroding long before the pandemic. And, on an average, there has been a steady decline in household savings in India, to a point that this year’s estimate is the lowest since at least 2012. The pinch is much worse for people who are retired, many of whom living on their savings lying at the banks. The interest on long-term fixed deposits make less money compared to the savings account, which is much lower than the current inflation. Essentially, people are paying banks rent to keep their money safe instead of earning from it. <div type="image" title="India household savings" msid="79318175" hostid="261" caption="&amp;lt;p&amp;gt;India household savings, both financial &amp;lt;span class=&amp;quot;redactor-invisible-space&amp;quot;&amp;gt;and in physical assets like gold, are sharply down in the last five years.&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;"></div> This should concern markets as well as policymakers. "GDP is an aggregative indicator of economic activity and hides the extent of human misery and the loss of social and human capital caused by the health crisis. Nonetheless, if the projections hold, the GDP would have fallen approximately 6% below its pre-COVID level and it may take years to regain this lost output,” Deputy Governor of the RBI and a member of the Monetary Policy Committee Michael D Patra recently <a href="https://timesofindia.indiatimes.com/business/india-business/rate-cut-will-depend-upon-moderation-in-inflation-rbi-governor-shanktikanta-das/articleshow/78829858.cms" data-type="tilCustomLink" target="_blank">said</a>. The gloom, too, shall pass eventually. But to experience a boom people need jobs, good wages and a feeling of certainty. And that will only come from new corporate investment that can generate employment. And it has to happen sooner than later. Else, India’s famed demographic dividend would have been squandered. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/from-downward-dog-to-upward-boom-influencer-and-teacher-ira-trivedi-shares-how-virtual-yoga-took-off-during-the-lockdown/articleshow/79317417.cms">From downward dog to upward boom — influencer and teacher Ira Trivedi shares how virtual yoga took off during the lockdown</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/from-downward-dog-to-upward-boom-influencer-and-teacher-ira-trivedi-shares-how-virtual-yoga-took-off-during-the-lockdown/articleshow/79317417.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/remembering-ym-deosthalee-the-man-who-struck-the-right-chord-between-music-and-math/articleshow/79306305.cms">Remembering YM Deosthalee, the man who struck the right chord between music and math</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/remembering-ym-deosthalee-the-man-who-struck-the-right-chord-between-music-and-math/articleshow/79306305.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/indra-nooyi-may-be-in-joe-biden-cabinet-heres-a-look-at-her-take-on-some-key-issues-concerning-india-and-us/articleshow/79303469.cms">Indra Nooyi may be in Joe Biden's Cabinet – here's a look at her take on some key issues concerning India and US</a>

There is a lot of money in the share market but not enough in your pocket

You would find a Patanjali Ayurvedic store in almost every known locality in India. And if you have had a chance of taking a sneak peek inside the store you must have noticed, they have a variety of products at their disposal right from soaps, shampoos, cosmetics to food products, medicines and <a href="http://www.businessinsider.in/searchresult.cms?query=ayurvedic">ayurvedic</a> products. The shops, which are apparently like any normal brick and mortar stores are licensed by Patanjali and sell products keeping very less profit margins, as claimed by the company. 
 
<a href="http://www.businessinsider.in/topic/Baba-Ramdev">Baba Ramdev</a> is known for his yoga. Besides, his opinions have often led to controversies. And Ramdev promoted <a href="http://www.businessinsider.in/searchresult.cms?query=patanjali">Patanjali Ayurved</a> (PAL) has captured the attention of stock market analysts, thanks to its meteoric rise over the years. 
 
CLSA, an investment banking company has recently come out with a report ‘'Wish you were listed: Patanjali Ayurved'. The study shows, Patanjali is bigger than Emami and Jyothy Labs and is perhaps the fastest growing fast moving consumer company in India with revenues in excess of Rs 2,500 crore for 2014-15. The dramatic growth has been achieved in less than a decade. 
 
In past three years, despite tough rivals, Patanjali’s revenues have increased four folds. PAL's operating margin is around 20% higher than many of its peers which advertise aggressively. 
While most FMCG firms outsource their products and just market, Patanjali played it traditional using the backward integration model. This requires large tracts of land to cultivate and run factories and workshops, thereby investing much more than other players. 
 
Listed <a href="http://www.businessinsider.in/searchresult.cms?query=FMCG+">FMCG</a> firms are currently trading at an average earnings multiple of 46. With revenues of close to Rs 2,500 crore and an estimated after-tax profit of Rs 300 crore, a similar earnings multiple would give Patanjali a valuation of Rs 14,000 crore. 
 
There are plans to come out with malted food drinks, and interestingly, instant noodles, where Nestle, is the market leader. 
 
Even though Patanjali has spent very little on branding and advertising, Ramdev's sermons and his mass following may have had a positive rub off on the products. In gatherings attended by thousands and interviews with news channels, he has been outspoken on the evils of MNCs, corruption in corporates, and high usage of chemicals in consumer products. However, <a href="http://www.businessinsider.in/topic/Swami-Ramdev">Baba Ramdev</a> has no stake in the company.

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