Mumbai, The Gautam Singhania-led <keyword id="244481" type="General" weightage="20" keywordseo="raymond-group" source="Orion">Raymond Group</keyword> on Thursday announced its exit from the consumer care business by selling condom brands KamaSutra and Premium and deodorant brands <keyword id="416499" type="General" weightage="20" keywordseo="park-avenue" source="Orion">Park Avenue</keyword> and DS to the Godrej Group for Rs 2,825 crore in an all-cash deal. However, the Raymond group will continue to manufacture these brands, sell them to B2B consumers and export. This means that Raymond will contract-manufacture and sell these brands to <keyword id="99744" type="General" weightage="20" keywordseo="godrej-consumer" source="Orion">Godrej Consumer</keyword> Care. It also means the exit is only from the consumer facing side of this business in the domestic market. Its condom plant is in Aurangabad, Maharashtra, while it sources the deos from contract manufacturers. The Raymond Group also announced the demerger of its consumer facing/lifestyle businesses into Raymond Consumer Care (RCCL), which will, upon merger, get listed. Raymond shareholders will get four shares of the RCCL for every five shares they hold. The group expects the demerger process to be completed over the next 15 months. Group chairman and managing director Singhania, who owns 49 per cent in RCCL, said, he will not take a single penny from the sale but the entire proceeds will go into the company (RCCL). A portion of the money will be used to completely repay the net debt of the group, which as of December 2022 stood at Rs 920 crore, and gross debt of Rs 2,000 crore. "In 2019, I infused Rs 350 crore into the company (real estate arm) when we sold a portion of our land. In the similar manner more than Rs 1,000 crore from this sale will go into RCCL, which has been a debt free entity all through, only, and the rest of the proceeds will be sued to make the group debt-free and the balance will be used for other business purposes, taking the promoter's equity infusion to Rs 1,400 crore," Singhania said. Post demerger, the group will have two independent net debt-free listed entities for lifestyle, which will be under RCCL, and real estate businesses which will be under Raymond, already a listed entity, he said. Raymond will now be a pure-play realty business entity along with investments in engineering (JK Files, which is the world's largest files maker) and denim businesses, he added. In a separate statement, Godrej Consumer Products (GCPL) said with this acquisition the company is entering the deodorants and sexual wellness categories. The Godrej Group expects the all-cash deal, through a slump sale route, to be completed by May 10, 2023. Godrej said these four brands - the condom brands KamaSutra and Premium, and the deodorant brands Park Avenue and DS -- through a slump sale, had revenue of Rs 411 crore in FY21, Rs 522 crore in FY22 and Rs 622 crore in FY23, valuing the deal almost five times the revenue. Sudhir Sitapati, managing director and chief executive of GCPL, said this acquisition "allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth". The deodorants and sexual wellness categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption compared to similar emerging markets. Per-capita consumption of deodorants is 0.4x that of Indonesia, 0.05x of that in Brazil and 0.04x that in the US, he said. Singhania said the demerger will facilitate focused investor opportunities and better access to capital with a clear strategy and specialisation for sustainable growth and profitability for both lifestyle and real estate business. Describing the exit and demerger as value creation, Singhania said, "in line with our commitment for creating shareholder value, we have taken an affirmative action by demerging our lifestyle business that will be a separate listed entity with zero net debt." "At Raymond Group, the realty business will also be the listed entity through Raymond Ltd. At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetisation of assets," Singhania said. Amit Agarwal, the group chief financial officer, said the swap ratio was finalised by KPMG and BDO along with a fairness opinion issued by ICICI Securities. InCredMAPE, the investment banking arm of InCred Group, said it has acted as the exclusive M&amp;A advisor on the landmark transaction in the consumer sector involving Godrej Consumer Care and Raymond Consumer Care's FMCG business. Bhupinder Singh, Group CEO of InCred Group, said, "This is a landmark event in the consumer sector with some of India's best-known brands from the Raymond's stable now entering new stewardship at Godrej in an exciting journey. We at InCred are privileged to have advised on this strategic transaction." The lifestyle business consists of suiting business with manufacturing plants, B2C shirting and MTM businesses, branded apparel with its portfolio of brands and subsidiaries including garmenting business with manufacturing facilities and B2B shirting business with manufacturing plants will be demerged into RCCL. Raymond is the largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting. Its brands portfolio include Raymond Ready to Wear, Park Avenue, ColorPlus, Parx, Raymond Made to Measure, and Ethnix by Raymond, amongst others. Raymond has one of the largest exclusive retail networks with around 1,400 stores across 600 towns. The group has presence in engineering space engaged in precision engineered products. Raymond made a foray into realty sector through the launch of its maiden project TenX spread across 14 acres housing 3,100 residential units and has recently launched a premium residential project -- The Address by GS -- in Thane which has a revenue potential of around Rs 5,000 crore. On the long pending IPO plans for JK Files, Singhania said the plan is on hold due to the poor market conditions.

Raymond group sells FMCG biz to Godrej for Rs 2,825 crore in all-cash deal

<ul><li>GCPL’s MD &amp; CEO Sudhir Sitapati said that the acquisition will turn EPS accretive soon. </li><li>Brokerages are concerned that the margins of <keyword id="14444009" type="General" weightage="20" keywordseo="raymond-consumer" source="Orion">Raymond Consumer</keyword>’s business are lower than that of GCPL’s. </li><li>GCPL’s distribution reach can help take RCCL’s products to Tier 2 cities, brokerages say. </li></ul><keyword id="99744" type="General" weightage="20" keywordseo="godrej-consumer" source="Orion">Godrej Consumer</keyword> Products (GCPL) – known for its portfolio of hair dyes, body washes and home care products like mosquito repellents and more – will enter the prized fast-moving consumer goods (FMCG) categories of men’s grooming once it concludes the acquisition of Raymond’s consumer business. GCPL managing director and chief executive officer Sudhir Sitapati is confident that the acquisition for which it paid ₹2,725 crore in an all-cash deal, will be EPS (earnings per share) accretive soon. An acquisition is termed EPS accretive if the acquiring firm’s EPS increases after the deal goes through. The acquisition is done at 4.5 times the expected sales of FY23. “This appears a tad expensive given Raymond Consumer Care (RCCL)’s smaller size and weaker EBITDA margins. RCCL’s business is being sold along with its trademarks of <keyword id="416499" type="General" weightage="20" keywordseo="park-avenue" source="Orion">Park Avenue</keyword>, KS and KamaSutra,” said a research report by Nuvama. The stock of GCPL fell 4.9% on Friday, a day after the announcement. The earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of Raymond is at 6% in FY22, which is too thin according to brokerages. “Assuming the company is able to quickly scale up operating margin in the business to 17-18% (achievable, in our view), the business would need to double in size for it to be earnings-accretive for GCPL,” says JM Financial. Low margins but scope for volume growth While Sitapati did not put an actual date to achieving the EPS accretive target, JM Financial expects it would take three years to reach the target, and would be earnings dilutive for the next couple of years. “On first-impression basis, we are not able to fully appreciate the need for GCPL to acquire Raymond’s FMCG business. There are cost-synergies to be had for sure, but that is mainly because the overhead structure of the acquired business, as it stands today, is quite inefficient, in our view,” JM Financial said. Around 80% of RCCL’s business comes from deodorants, which is a heavily competitive business that puts it in direct competition with FMCG majors like Hindustan Unilever and ITC among others. Due to the pressure to promote these products, it will increase its ad spends. As much as 20% of the revenue comes from Kamasutra which is a sexual wellness brand. But there are synergies that will aid the volume growth in these newly-acquired businesses as well. Park Avenue and Kamasutra both have strong traction in the urban markets but lack distribution reach in Tier 2 cities. GCPL with its wide distribution network can ease this growth. Moreover, the size of these businesses are large. The size of the male deodorant category is around ₹4,000 crore, while the overall deodorant category is at ₹5,000-6,000 crore. The size of the commercial latex category is ₹1,200 crore, Sitapathi told Business Standard in an interview. Yet, a few analysts see some clashes in the portfolios of GCPL and RCCL. GCPL’s Cinthol is a legacy brand which has been targeting male grooming for decades now with shaving creams, soaps and deodorant products. “Why the need for Park Avenue brand when GCPL’s own Cinthol brand is rather underutilised at present. Cinthol itself has a pretty strong brand equity, we believe,” says JM Financial. Moreover, there are more unanswered questions from the deal. RCCL has presence in the shampoo category too under the brand Beer Shampoo, and minor presence in soaps category as well. It’s yet to be seen how these products will blend into Godrej’s portfolio.

Godrej Consumer has to double Raymond’s consumer business for it to be earnings accretive, say analysts

<ul><li>The <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> closed 463 points or 0.76% higher at 61,112 while the <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> ended 149.9 points or 0.84% higher at 18,065.</li><li>Investors are currently monitoring corporate earnings along with the latest pattern of foreign investments in Indian stocks.</li><li>Besides, FIIs have been buying aggressively since the last few sessions, acquiring ₹1,652 crore worth equities on April 27 and ₹1,257 crore on April 26.</li><li>On the Nifty50, Adani Enterprises, Adani Ports &amp; SEZ, Nestle India, Wipro and Britannia Industries were the top five gainers.</li></ul>Indian markets ended higher after a choppy session on Friday led by gains in public-sector banks, information technology and fast-moving consumer goods (FMCG) companies Investors are currently monitoring corporate earnings along with the latest pattern of foreign institutional investments (FII) in Indian stocks. Besides, the market is awaiting the US Fed monetary policy outcome next week. Analysts say a 25-basis-point (bps) rate hike has already been factored in. The Sensex closed 463 points or 0.76% higher at 61,112 while the Nifty50 ended 149.9 points or 0.84% higher at 18,065. In April, Sensex and Nifty ran up nearly 4% each amid release of March quarter corporate earnings. “The Nifty opened lacklustre but started gaining strength during mid-market. It witnessed a sharp jump in the last 30 minutes to cross the 18k mark…Domestic equities are continuously gaining strength for the last five days supported by healthy Q4 earnings, declining VIX and FIIs turning positive,” said Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services. The volatility index India VIX closed 4.29% lower at 10.94 points. It’s a measure of market volatility expected in the near term. Strong buying was also seen in the broader market with Midcap 100 up 1.24% and Smallcap 100 up 0.83%. All sectors ended in the green with PSU Bank (2.45%) and IT (1.29%) being <keyword id="2482669" type="General" weightage="20" keywordseo="top-gainers" source="Orion">top gainers</keyword>. Besides, FIIs have been buying aggressively since the past few sessions – scooping up ₹1,652 crore worth equities on April 27 and ₹1,257 crore on April 26. Analysts expect the positive market momentum to continue going ahead. On Monday, May 1, the stock market will remain closed on account of Maharashtra Day. “Nifty showed resilience despite global headwinds gaining over 4% in April - the best in 5 months and managing to close above the crucial 18,000 mark. We expect this momentum to continue and expect Nifty to head towards 18,200 zones. Next week will be crucial as US Fed and ECB (European Central Bank) policy meetings are lined – up, “ said Khemka. Apart from this, PMI (purchasing managers' index) data from US, China and India would also be keenly watched. On the domestic front, investors would continue to track Q4 results along with global cues and auto monthly sales data, added Khemka. On the Nifty50, Adani Enterprises, Adani Ports &amp; SEZ, Nestle India, Wipro and Britannia Industries were the top five gainers. Wipro ended 2.8% higher as the company announced a share buyback programme worth ₹12,000 crore on Thursday. The Indian IT major also posted a 0.6% sequential decline in constant currency revenues for the March quarter. However, the next quarter could be worse as it guided for a 1-3% sequential decline in its IT services revenues to $2.75-$2.81 billion. Meanwhile, Axis Bank, Titan, Oil and Natural Gas Corporation (ONGC), JSW Steel and Cipla were among the <keyword id="2519297" type="General" weightage="20" keywordseo="top-losers" source="Orion">top losers</keyword> on the exchange. Shares of Axis Bank slipped more than 2% as the lender reported a net loss of ₹5,728 crore for the March quarter against a net profit of ₹4,417 crore a year ago due to a payout of ₹12,490 crore towards its acquisition of Citigroup’s India consumer business. Movement on Nifty500 index <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><col /><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;">Top gainers </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;">% change </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;">Top losers </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;">% change </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;">Ceat </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;">11.54% </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;">MMTC </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;">-11.46% </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;">PI Industries </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;">10.15% </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;">Raymond </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;">-7.23% </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;">EIH </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;">9.83% </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;">Sanofi India </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;">-6.62% </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;">Polyplex Corporation </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;">7.51% </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;">Shriram Finance </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;">-5.18% </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;">Indus Towers </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;">6.87% </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;">Brightcom Group </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;">-5.08% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: NSE The share price of Raymond fell steeply on Friday, a day after hitting an all-time high,as Godrej Consumer Products acquired the FMCG business of Raymond Consumer Care for ₹2,825 crore. With this, Raymond will primarily become a real estate company with investments in engineering and denim business. Meanwhile, global markets were trading higher on strong earnings posted by tech companies with Nasdaq up 2.43%, Dow Jones up 1.57% and S&amp;P 500 up 1.96%. Asian markets were on the rise too – Nikkei 225 rose 1.40%, Shanghai Composite gained 1.14%, Taiwan Weighted rose 1.09% and Hang Seng went up by 0.27%. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/wipro-says-it-services-revenue-could-decline-1-3-in-q1fy24-announces-buyback/articleshow/99809050.cms">Wipro says IT services revenue could decline 1-3% in Q1FY24, announces buyback</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/non-tech-companies-are-actively-recruiting-tech-talent-with-over-one-million-jobs/articleshow/99816472.cms">Over a million jobs await techies &amp; it’s not tech cos that are hiring them</a>

Indian markets end higher after a choppy session – PSU banks, IT, FMCG gain

<ul><li>The branded apparel major is likely to see free cash flow this year itself, Chairman Gautam Singhania said in an <keyword id="975312" type="PERSON" weightage="20" keywordseo="exclusive-interview">exclusive interview</keyword>.</li></ul><ul><li>Development of Thane land may be capital light, he said but stopped short of divulging details. </li></ul><ul><li>Do not paint Raymond with the same brush as other promoters, he hit back on the question of governance. </li></ul>Gautam Singhania, the second-generation promoter of Raymond Limited, whose businesses span from branded apparel and textile to fast-moving consumer goods to engineering and auto parts, is hoping that the business will increase its free cash flow as early as the current financial year that ends on March 31, 2019. Raymond’s stock price has multiplied over two-and-a-half times in the last three years. This, at a time when the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) was negative, and it has turned into the black only now. 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/260606"></div><script src="https://public.flourish.studio/resources/embed.js"></script>
]]></cdata></div>















 The company posted a profit in four out of last five quarters. Most recently, the company declared a net profit of ₹ 260 million in the three months between October and December 2018. and Singhania is confident that it will only improve hereon. 
 
 
 
 
 
 
 <div type="ExtQuote" text="“We are at the end of the investment cycle, so you will start seeing free cash flow now; from this year itself.&quot;" auname="Gautam Singhania, Chairman, Raymond Limited"></div>















 The company’s debt has been a cause for concern in the Indian markets for long. But Singhania is not bothered by it. “At the end of the day, Raymond has a net debt of about ₹2,300 crores. I don’t sleep with a net debt of ₹2,000 crores, people with debt 20 times and 50 times the size sleep easy. I don’t know why we are worried about Raymond’s debt,” he candidly said. The plan to unlock value by selling a 20-acre land in Thane, in the outskirts of Mumbai, as well as non-core business like engineering and auto parts is on track, he said. The money from these sales will go into repaying debt, but Singhania is in no hurry. “At the end of the day you have to understand one thing, I will do it to the best of my ability and number two, I am the biggest gainer. That’s all I am concerned with. I will do whatever is in the best interest of shareholders. I am the largest shareholder,” he said. The company, which was admittedly looking to pare down debt by selling the Thane land, <a href="https://economictimes.indiatimes.com/markets/expert-view/gautam-singhania-on-affordable-housing-foray-schools-and-expanding-raymond-into-small-towns/articleshow/67974132.cms">announced recently</a> that it would develop the project on its own instead. This may raise concerns on whether the company would end up adding to the debt in the process. But Singhania dismissed those fears, saying, “What makes you say that developing on our own cannot be capital light? That’s your assumption. I am not going to tell how I am going to do it. How I do it, I am not at liberty to discuss it with you.” The flamboyant 53-year-old who loves fast cars, high-flying private jets, and cruising speed boats has also faced some <a href="https://economictimes.indiatimes.com/markets/stocks/news/raymond-rebounds-7-after-clarification-on-related-party-transaction-report/articleshow/67895858.cms">tough questions on corporate governance</a> in recent times, which he has vehemently denied. “You are not willing to accept that I am the only promoter in the country who has stepped off his own companies as chairman, has put in the highest level of corporate governance in the system, has got outside directors and outside professionals to take over as chairman. I have the best advisory board in the country. Don’t paint Raymond with the same paint brush as other promoters. Show me one other promoter who has done what Raymond has done, then talk to me,” Singhania said demanding credit for bringing in transparency in governance. 
 
 
 
 
 
 
 <div type="ExtQuote" text="&quot;Don’t paint Raymond with the same paint brush as other promoters.&quot;" auname="Gautam Singhania, Chairman, Raymond Limited"></div>















 Analysts seem to agree with Singhania’s narrative. “Over the last 2 years, a lot of changes in terms of management, brand positioning, disclosures, rationalising store network, etc. which have happened at Raymond post which the company has been steadily improving its performance on guided lines,” Edelweiss said in a report earlier this month. Room for growth Singhania is betting on Raymond’s scale and reach, and its well-known brand. “See, you always will have some competition, and it’s good. Some of the big brands will come to Mumbai, Delhi, Kolkata, Chennai. Raymond today is in Tier-10 towns, we are 515 towns, we are competing in a different marketplace as well. A foreign brand in our space, I don’t want to take names, has been in this country for 30 years and it makes $2 million a year. It’s irrelevant to me. It doesn’t bother me,” he said. Additionally, Raymond’s franchisee model allows it to reach deeper into smaller towns without having to invest big money. “In the last 18 months, Raymond has added over 200 mini-TRS (The Raymond Shop) stores in over 180 towns, penetrating smaller cities,” PhillipCapital said in a note this month. As of now, the company makes over 70% of its revenue from textiles and branded apparel. Going forward, there will be an added focus on relatively new verticals like fast-moving consumer goods space, said Singhania. Having decoupled the group companies from the parent through management changes, the FMCG vertical will have to make its own business decisions. “It’s a separate business. It will find its own capital. If it requires capital, it will find it. It’s a professionally run company. Raymond capital doesn’t have to go there. Raymond will only put capital there only if it believes it wants to. The company will grow on its own steam. If it wants capital, it can go to the market and raise private equity or debt,” Singhania said.

EXCLUSIVE: Two revelations and a fiery defence from Raymond’s boss Gautam Singhania

<ul><li>The year 2020 was a roller coaster ride for businesses of all kinds and sizes and negatively impacted <keyword id="47276" type="PERSON" weightage="20" keywordseo="Economic-growth">economic growth</keyword> worldwide. </li><li>However, after June 2020, one industry that continued to see stable cash flow and income was FMCG. </li><li>In today’s feature, we speak to leading FMCG brands on their outlook for 2021 as we move forward. </li></ul>The pandemic has taught the brandverse to be prepared for the unexpected. Owing to the fear of contracting the virus by going out, brands had to rethink and realign their strategies to reach out to consumers in new ways. Online shopping platforms opened up their services to deliver 24*7 and people started hoarding daily essentials, including FMCG products. So, many FMCG brands partnered with e-commerce platforms like Dunzo, Flipkart, Grofers, BigBasket, etc to deliver within the comfort of consumers’ homes. Consumer habits also evolved with COVID and ‘immunity’ became the buzzword in the FMCG industry. Marketers reverted by launching ready-to-eat meal options and immunity-based packaged goods. However, with COVID vaccine now a reality, consumer sentiment is already picking up and the economy is in revival mode. Going by the latest reports, 2021 will augur well for small retailers leading to an increased sales from local markets and <keyword id="6513856" type="COMPANY" weightage="20" keywordseo="kirana-stores">kirana stores</keyword>. According to <keyword id="346535" type="COMPANY" weightage="20" keywordseo="Nielsen-India">Nielsen India</keyword>, after an unprecedented decline of -19% in the Jan-Mar quarter, FMCG industry displayed signs of recovery in Q3’20 with a 1.6% growth (versus Q3 ‘19). In 2020, rural markets outperformed urban India and became critical for FMCG giants. Brands relied on rural markets to drive growth during the trying times. FMCG witnessed a double digit growth of 10.6% in Q3’20 in Rural India, while the bigger cities (&gt;1 Lakh population including metros and Town Class 1) played catch-up. The rural markets bounced back in Q3 handsomely on the back of support provided by the government as well as good agriculture, reverse migration and a lower unemployment rate. With immunity being the focus in the ‘new normal’, new launches have been made in the health and hygiene basket including categories like hand sanitisers, floor cleaners, toilet cleaners, antiseptic liquids. These new launches contributed to 37% (in value) of all new launches in the COVID period (Nielsen India). According to Kantar Worldpane, FMCG sector in India is expected to report a 4-5% volume growth in FY21, driven by rural areas that are expected to grow two percentage points ahead of the urban regions that are hit harder by COVID-19 pandemic. While COVID-19 has curtailed economic growth in the FMCG sector, experts are now optimistic that the industry will see an appreciable improvement this year. Here are some of the trends they expect to see in 2021: R S Sodhi, MD, GCMMF (AMUL): <cmsannotation type="cmsannotation" annotationid="The biggest impact i" comment="inlineshare" text="The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.">The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.</cmsannotation> I don't think the demand in high end consumer products will grow as much now. There'll be a tremendous increase in demand for branded FMCG products that are affordable, available in smaller packs and mainly cater to Tier II III cities. For the past two years, at Amul, we have been trying to ensure we reach the towns that have over 10,000 population, which helps us cover the 15 to 20 bigger villages around those towns. Currently, we are working with 10,000 distributors. We have already covered 50% of these 10,000 population towns in India and in another one year, we'll cover all the towns. We're mainly investing in Tier II and III cities, opening our own branches and depots all over India. We recently opened a centre in Leh. Anil Viswanathan, senior director, marketing (chocolates), insights and analytics, <keyword id="2200852" type="COMPANY" weightage="20" keywordseo="Mondelez-India">Mondelez India</keyword>: The pandemic has accelerated the growth of snacking. As per Mondelēz International’s recently released second annual State of Snacking report, 9 in 10 Indian adults (88%) say they are snacking more or the same (22%) during the pandemic than before it, with millennials being especially likely to say they prefer snacks over meals (85%). A majority expect this trend to continue, saying they plan to continue eating small snacks throughout the day, as opposed to fewer large meals (82%), and that snacking will be part of their “new normal” even after the pandemic ends (81%). Ultimately, 8 in 10 believe “the current pandemic will have a long-term impact on how we consume snacks as a society” (81%). This unprecedented year has also brought about a significant behavioral change especially on how consumers are purchasing snacks. A majority say they have started to buy snacks online more often than they do in-store or offline (74%), with 8 in 10 planning to continue shopping for snacks online once the pandemic is over (81%). A similar percentage also say the pandemic has opened their eyes to so many more ways to get snacks than they knew existed before (80%), including half who have discovered snacks to try on social media (50%). It was also very heartening to note that, even while at home this year, Indians are social snackers. With health and safety continuing to be a priority, consumers are trying to strike a balance between indulging and being mindful (80%), and in doing so; they (80%) are relying on trusted snacking brands like Cadbury, OREO, and Bournvita, seeking assurance of safety and superior quality. At Mondelez India, we understand the role our products play in our consumers’ life and the aim is to leverage these trends to empower them with more choice, creating greater shopping opportunities and innovating, while keeping our promise of consumer-centricity intact, throughout our growth journey. Sudhir Langer, CEO, Raymond Consumer Care: Conscious Communication Today’s young ‘woke’ consumers were already moving away from the excesses of consumerism and leaning towards sustainable conscious brands before the pandemic and lockdowns hit their lives. The all-round strain of the pandemic from volatile job markets and a possible looming global recession to health and environment concerns; along with the way lockdowns were framed as health versus economy predicaments—as if one has to be sacrificed for the other—has left many questioning the very basis of our consumer-driven economy. I feel, the months in lockdown have only strengthened that introspection and has further fueled the young consumers’ move towards purpose and value, making them think-twice before buying by taking in to consideration the long-term impact of their spends not only on their finances, but on their own beliefs, on society and on the planet. So, with conscious consumption here to stay, when consumers buy, it is going to be as much for brand values as it is for product payoff. Keeping this in mind a big communication trend I see emerging as we move into 2021 is brands engaging more purposefully with deeper more sentient conversations. These could include brands talking about their environmental and sustainability efforts, community initiatives, health impact and most importantly value addition. Fortunately for us this is not a shift to adapt to; but a way of operating. We have always believed in empowering, enabling and operating consciously. Hence, it’s not only our communication like our recent Park Avenue Germ Protect soap film about our protagonist helping his community but at every level we are constantly taking steps to enhance efficiencies for a better world like our soon to be launched sustainable and eco-friendly packaging. Sumit Mathur, Director Marketing Kellogg South Asia: The pandemic is a black swan event that brought several changes at the economic and societal levels. Consumers had to face economic stress which made them more discretionary in their consumption choices. Our virtual connects with over 450 consumers amidst the lockdown made it clear that items which they do not deem to be too essential are unlikely to find a place in their shopping carts. Come 2021, only brands solving a real consumer problem or adding value to their lives will be on top of their minds. It has become increasingly important for brands to feel the pulse of the consumer and provide authentic solutions to stay relevant. Kellogg’s has paid attention to the consumer’s shifting needs and adapted with agility to ensure it solves consumers’ nutritional demands in the most convenient manner and this will continue to be our focus in the coming year.

FMCG: The trends to watch out for in 2021

<ul><li>India’s retail industry opened doors on June 8 but it’s still struggling with getting consumers to its shops.</li><li>Shoppers Stop was the latest to lay off over 1100 employees. </li><li>A survey from the Retailers Association of India said that a majority 67% of the consumers surveyed showed little to no excitement in shopping post the lockdown. </li></ul>India’s retail industry opened doors on June 8 but it’s still struggling with getting <a href="https://www.businessinsider.in/business/news/shopping-malls-are-open-but-retailers-face-the-next-big-challenge-getting-people-to-the-stores/articleshow/76294870.cms">consumers to its shops.</a> As sales continue to slide and the crisis worsens, the retail industry is also seeing massive layoffs. Shoppers Stop was the latest to lay off over 1100 employees. “With the declining business, layoffs are unfortunately inevitable. With a limitation on adding new stores in this situation, the size of our business is effectively reduced and, therefore, unfortunately we need to adjust our cost base in such times,” a spokesperson from the company told <a href="https://economictimes.indiatimes.com/industry/services/retail/shoppers-stop-lays-off-more-than-1100-employees/articleshow/76334010.cms">Economic Times.</a> Previously, apparel company Raymond had fired <a href="https://www.businessinsider.in/business/corporates/news/raymond-layoffs-salary-cuts-and-complaints-of-pending-severance-pay/articleshow/75945502.cms">hundreds of employees</a> because of a rising debt and the increasing pressure on the business due to the coronavirus pandemic. The debt-ridden Future Group had already laid off hundreds of employees in January 2020, as the consumer spending hit an all time low while the company struggled with its debts. Across unorganised retail, the number of job losses could be much much more. “Over 80% of the garment industry comprises MSMEs which don't have the resources to pay salaries to their employees,” Rahul Mehta,<a href="https://www.businesstoday.in/current/economy-politics/coronavirus-impact-retailers-fear-job-losses-as-revenues-fall-30-35-percent/story/400904.html"> President of Clothing Manufacturers Association of India</a> had said earlier. A survey by Retailers Association of India (RAI) showed that 25% of small retailers said they needed capital to survive post covid, while 50% believed that they would have to shut shop. "If this happens, there will be a huge impact on jobs," said Kumar Rajagopalan, CEO of RAI. India's retail sector accounts for 8% of employment in the country and was valued at $792 billion in 2018, according to CARE Ratings. A survey by <a href="https://www.newindianexpress.com/business/2020/may/14/covid-19-effect-organised-private-sector-planning-layoffs-salary-cut-2143317.html">MyHiringClub.com</a> said that the retail and FMCG sector has the highest percentage of layoffs at 49%. “Industries like aviation, hospitality, travel, FMCG, retail, automobile &amp; manufacturing will suffer more and will take longer to recover due to a halt in spending. Job cuts, salary reduction and business downfall are major reasons for spending less in the current situation,” said Rajesh Kumar, CEO, MyHiringClub.com &amp; Sarkari-Naukri.info. Earlier, the credit rating agency CARE ratings gave 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. A survey from RAI said that a majority 67% of the consumers surveyed showed little to no excitement in shopping post the lockdown. Moreover, 78% of the respondents said their shopping expenditure would decrease. The weak consumer intent to spend and the fear of the virus only further hurts the retail industry, which was completely shut during lockdown. “During the span of 60 days of national lockdown, the domestic trade has lost a business to the tune of about ₹ 9 lakh crore, causing a revenue loss of about ₹1.5 lakh crore to both the central and state governments on account of GST,” said <a href="https://retail.economictimes.indiatimes.com/news/industry/indias-retail-trade-lost-business-worth-rs-9-lakh-cr-in-last-60-days-cait/75963031">Confederation of All India Traders</a> Secretary General Praveen Khandelwal. SEE ALSO: <a href="https://www.businessinsider.in/india/news/first-week-of-india-unlock-1-heres-what-worked-and-what-didnt/articleshow/76351605.cms">First week of Unlock 1.0 – Here’s what worked and what didn’t</a> <a href="https://www.businessinsider.in/business/news/shopping-malls-are-open-but-retailers-face-the-next-big-challenge-getting-people-to-the-stores/articleshow/76294870.cms">Shopping malls are open but retailers face the next big challenge – getting people to the stores</a> <a href="https://www.businessinsider.in/tech/news/infosys-faces-a-racial-discrimination-suit-in-the-us-as-black-lives-matter-protests-rise-in-the-country/articleshow/76353028.cms">Indian IT giant Infosys faces a racial discrimination suit in the US as Black Lives Matter protests rise in the country</a>

From Shoppers Stop and Raymond to small retailers ⁠— thousands of people have lost their jobs

<img class="gwt-Image" src="/photo/31185174.cms" /> <keyword id="2085190" type="UNKNOWN" weightage="100" keywordseo="Online-grocery-stores">Online grocery stores</keyword> are gaining popularity in India due to sheer convenience, ease of shopping and a fast-growing market. Globally, <keyword id="2085193" type="UNKNOWN" weightage="100" keywordseo="Online-grocery-retail">online grocery retail</keyword> is growing nearly 7 times faster than on-ground formats and the <keyword id="47445" type="UNKNOWN" weightage="100" keywordseo="Indian-market">Indian market</keyword> may soon catch up. For one, the <keyword id="156795" type="UNKNOWN" weightage="100" keywordseo="indian-retail-industry">Indian retail industry</keyword> is estimated to be worth over $500 billion (one of the world’s top 5 markets) and 30-40% of the businesses will be in the online retail space over the next 7 years., This presents a great opportunity for any form of e-tailing, especially the <keyword id="2085203" type="UNKNOWN" weightage="100" keywordseo="E-grocery-space">e-grocery space</keyword>. 
 As of now, <keyword id="2085207" type="UNKNOWN" weightage="100" keywordseo="Grocery-e-tailing-in-India">grocery e-tailing in India</keyword> is a largely unorganised space and poses a big challenge in terms of stiff <keyword id="2085206" type="UNKNOWN" weightage="100" keywordseo="Entry-barriers">entry barriers</keyword>. The traditional methods of inventory and <keyword id="2085212" type="UNKNOWN" weightage="100" keywordseo="Logistics-management">logistics management</keyword> call for intense cash-burning – a business condition most of the bootstrapped Indian start-ups fail to meet. Moreover, a <keyword id="2085209" type="UNKNOWN" weightage="100" keywordseo="Series-A-funding-crunch">Series A funding crunch</keyword> also compelled companies like Mumbai-based <keyword id="2048780" type="UNKNOWN" weightage="100" keywordseo="ShopVeg">ShopVeg</keyword> to shut down operations. Therefore, when another Mumbai-based start-up decided to start grocery e-tailing in the same year, things were not looking too exciting for the newcomer. But 22 months later, <keyword id="2009014" type="UNKNOWN" weightage="100" keywordseo="LocalBanya-com">LocalBanya.com</keyword> has managed to set up Mumbai’s first online supermarket and also raised <keyword id="6793689" type="UNKNOWN" weightage="100" keywordseo="Series-A-funding">Series A funding</keyword> for the next level of expansion. 
 Although there were predecessors that attempted various models of grocery retail in the digital space and failed, <keyword id="2047523" type="UNKNOWN" weightage="100" keywordseo="LocalBanya">LocalBanya</keyword> has adapted a <keyword id="2085214" type="UNKNOWN" weightage="100" keywordseo="Lean-business-model">lean business model</keyword> that relies on a convenient mix of <keyword id="96173" type="PERSON" weightage="100" keywordseo="warehousing">warehousing</keyword> and <keyword id="512818" type="UNKNOWN" weightage="100" keywordseo="cash-and-carry">cash-and-carry</keyword>. This has reduced the start-up’s dependence on capital-intensive operations and enabled it to put in place a thoroughly efficient <keyword id="118965" type="PERSON" weightage="100" keywordseo="Supply-chain">supply chain</keyword>. In addition, the company has adopted some unique measures to take <keyword id="2085217" type="UNKNOWN" weightage="100" keywordseo="Customer-convenience">customer convenience</keyword> to the next level. Want to know more about LocalBanya and how it works? Here is a snapshot that captures the start-up’s vision and viability. 
 
Who runs LocalBanya (www.localbanya.com): A team of three co-founders – <keyword id="2085179" type="UNKNOWN" weightage="100" keywordseo="Karan-Mehrotra">Karan Mehrotra</keyword> (<keyword id="5645" type="POSITION" weightage="100" keywordseo="CEO">CEO</keyword>), <keyword id="2085180" type="UNKNOWN" weightage="100" keywordseo="Rashi-Choudhary">Rashi Choudhary</keyword> (COO) and <keyword id="1251820" type="PERSON" weightage="100" keywordseo="Amit-Naik">Amit Naik</keyword> (<keyword id="238078" type="POSITION" weightage="100" keywordseo="CTO">CTO</keyword>). Karan is the brain behind LocalBanya and set up the entire infrastructure with just 14 employees. He is a <keyword id="163598" type="POSITION" weightage="60" keywordseo="computer-engineer">computer engineer</keyword> and prior to starting up, worked for his family business as a distributor for <keyword id="123278" type="UNKNOWN" weightage="100" keywordseo="FMCG-firms">FMCG firms</keyword>. He has 11 years of work experience in varied fields – from turning around a chain of restaurants to setting up metal fabrication plants to building a food distribution network. 
 Amit holds an MBA from IIM-Lucknow and he is also a Six Sigma Black Belt from the American Society for Quality. He had six years of top tier experience in ad-tech and earlier worked for <keyword id="1076906" type="ORGANIZATION" weightage="80" keywordseo="Directi">Directi</keyword> and <keyword id="45475" type="CITY" weightage="80" keywordseo="Larsen-Toubro">Larsen &amp; Toubro</keyword>. Rashi holds a Global MBA from <keyword id="1433263" type="UNKNOWN" weightage="60" keywordseo="SP-Jain-School-of-Global-Management">SP Jain School of Global Management</keyword> and brings four years of experience in <keyword id="6553136" type="UNKNOWN" weightage="100" keywordseo="retailing">retailing</keyword>, consulting and <keyword id="169305" type="ORGANIZATION" weightage="100" keywordseo="customer-service">customer service</keyword>. Prior to joining LocalBanya, she worked with the <keyword id="244481" type="COMPANY" weightage="60" keywordseo="Raymond-Group">Raymond Group</keyword>. 
 The trio had been working on the concept for some time and the site went live in May 2012. LocalBanya is now in beta and the e-grocer has over 130 employees operating across Mumbai, Thane and <keyword id="57321" type="PERSON" weightage="100" keywordseo="Navi-Mumbai">Navi Mumbai</keyword>. 
 
What inspired the venture: The desire to go one step ahead of your <keyword id="2085220" type="UNKNOWN" weightage="100" keywordseo="Local-grocer">local grocer</keyword> who accepts orders on phone. “Apparently, it was convenient but there was something lacking. You can’t browse the inventory when ordering on phone; the choices are not many (after all, a kirana or <keyword id="2085221" type="UNKNOWN" weightage="100" keywordseo="Mom-and-pop-store">mom-and-pop store</keyword> won’t keep exotic or imported items as those are a bit expensive) and finally, there’s no organised system (accountable, responsible and prompt),” says Karan. So up came LocalBanya, an online supermarket selling around 12,000 products across 17 categories and adding more every day. 
 
What’s the pitch: LocalBanya.com is an <keyword id="2085223" type="UNKNOWN" weightage="100" keywordseo="Online-convenience-store">online convenience store</keyword> dedicated to YOU (customers). The e-grocer offers high quality products and hassle-free delivery that save time, energy and money. “If you are <keyword id="62452" type="UNKNOWN" weightage="100" keywordseo="grocery-shopping">grocery shopping</keyword> 4-5 times a month or looking for something special, imagine the kind of supermarket trips you have to make and how you have to run from shop to shop,” points out Karan. “But having the entire bulk procured for you and delivered to your place, at the time you want it, would make things extremely convenient and lure the customers,” he adds. Karan, however, feels that the industry is huge enough to allow kirana stores, large-format retailers and e-retailers to survive and grow in the same marketplace. 
 
How it works: As of now, LocalBanya is targeting the <keyword id="6756404" type="UNKNOWN" weightage="100" keywordseo="urban-population">urban population</keyword> and the customer base varies from <keyword id="2085227" type="UNKNOWN" weightage="100" keywordseo="Single-professionals">single professionals</keyword>, <keyword id="632195" type="UNKNOWN" weightage="100" keywordseo="working-couples">working couples</keyword>, <keyword id="168112" type="UNKNOWN" weightage="100" keywordseo="Nuclear-families">nuclear families</keyword> and <keyword id="3216" type="ORGANIZATION" weightage="100" keywordseo="students">students</keyword> fending for themselves to <keyword id="1400200" type="UNKNOWN" weightage="100" keywordseo="new-mothers">new mothers</keyword>, <keyword id="20566" type="UNKNOWN" weightage="100" keywordseo="senior-citizens">senior citizens</keyword> and even <keyword id="2085229" type="UNKNOWN" weightage="100" keywordseo="Large-families">large families</keyword>. 
 “People come to us for a wide selection of goods (otherwise, they will have to visit 2-3 stores to make a purchase), convenience and great pricing. We deliver that convenience with exceptional levels of customer service, <keyword id="2085230" type="UNKNOWN" weightage="100" keywordseo="Preferred-delivery-times">preferred delivery times</keyword>, same-day deliveries, fresh produce and efficient &amp; reliable suppliers. We also take product suggestions from our customers and ensure that the products are online in a fortnight,” details the LocalBanya team. The <keyword id="2085232" type="UNKNOWN" weightage="100" keywordseo="Procurement-model">procurement model</keyword> includes a convenient mix of warehousing and just-in-time (<keyword id="377986" type="ORGANIZATION" weightage="100" keywordseo="JIT">JIT</keyword>) deliveries from a host of suppliers including <keyword id="34523" type="CITY" weightage="80" keywordseo="fmcg">FMCG</keyword> companies, cash-and-carry outlets and other distributors. 
 Shopping for groceries on the LocalBanya platform is also kept simple. You just have to register or connect through Facebook before browsing the categories and the products. Once you make the purchase, the order is processed and ready for delivery within 6 hours. Delivery is done as per your time slot selection. The company offers 6 slots (of 2 hours each), from 7 in the morning until midnight, and one can choose any of those. Customers also enjoy <keyword id="2085234" type="UNKNOWN" weightage="100" keywordseo="Banya-Points-rewards-programme">Banya Points rewards programme</keyword> and these points are redeemed for cash discounts on every purchase. 
 
Claim to fame: <keyword id="900658" type="UNKNOWN" weightage="100" keywordseo="traction">Traction</keyword> and <keyword id="232730" type="POSITION" weightage="100" keywordseo="business-model">business model</keyword>. The start-up claims that it currently reaches over 10,000 homes a month and delivers 500-plus orders a day. Interestingly, nearly one-third of its orders are from <keyword id="1189616" type="UNKNOWN" weightage="100" keywordseo="institutional-clients">institutional clients</keyword> while senior citizens and <keyword id="58225" type="ORGANIZATION" weightage="100" keywordseo="NRIs">NRIs</keyword> constitute over 16% of the customer base. But what matters most is the <keyword id="2085235" type="UNKNOWN" weightage="100" keywordseo="Lean-infrastructure">lean infrastructure</keyword> set-up for reducing asset liabilities. 
 
Show me the money: Since its <keyword id="85080" type="ENTERTAINMENT" weightage="100" keywordseo="Inception">inception</keyword> in May 2012, LocalBanya has done around Rs 15 crore in gross revenues. The start-up is projected to grow 40% month on month over the next 15-18 months and eyes <keyword id="486782" type="UNKNOWN" weightage="100" keywordseo="break-even">break-even</keyword> in the existing markets (Mumbai, Thane and Navi Mumbai) by June this year. 
 LocalBanya was initially bootstrapped, but has already raised two rounds of <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword>. It is now in talks with investors to raise a Series B round by March 2014. In January this year, the start-up secured an undisclosed amount in Series A funding from <keyword id="2009015" type="UNKNOWN" weightage="80" keywordseo="Karmvir-Avant-Group">Karmvir Avant Group</keyword>, a real estate developer in Mumbai. Earlier, it had raised funding from <keyword id="2085241" type="UNKNOWN" weightage="100" keywordseo="Times-Groups-Brand-Capital-Springboard">Times Group’s Brand Capital Springboard</keyword> platform. “The Series A round will last us for a year and help fuel our growth at a faster rate as we scale up operations, hiring and marketing. We are also looking to start operations in a new city within a quarter,” says Karan. 
 
Biggest challenge: Competition abounds in online grocery retail space but containing cash-burning is most crucial when it comes to inventory, supply chain and logistics. Streamlining the supply chain and <keyword id="2085210" type="UNKNOWN" weightage="100" keywordseo="Inventory-management">inventory management</keyword> is an uphill task but a lean procurement set-up, use of <keyword id="2085238" type="UNKNOWN" weightage="100" keywordseo="Leased-delivery-vehicles">leased delivery vehicles</keyword>, <keyword id="2085242" type="UNKNOWN" weightage="100" keywordseo="In-house-delivery-personnel">in-house delivery personnel</keyword> (for ease of management) and a well-structured <keyword id="2085243" type="UNKNOWN" weightage="100" keywordseo="Region-mapping">region mapping</keyword> that enables effective coverage of the city have helped the start-up cut down on costs. 
 
Five takeaways: In nearly 2 years of operation, LocalBanya has seen some interesting trends in <keyword id="2085200" type="UNKNOWN" weightage="100" keywordseo="Online-grocery-shopping">online grocery shopping</keyword> behaviour and Karan &amp; his team want to share it with the budding wannapreneurs and all our readers. So here we go: 
 
59% of the transactions on the site are done by women. 
 
Senior citizens are a sizeable 14% of the customer base due to the convenience of online retail. 
 
A sizeable 2.1% of transactions are done by NRIs to have groceries delivered to their relatives in Mumbai. 
 
Institutional clients including restaurants, corporate houses, co-operative societies and any other organisation requiring groceries in bulk have seen the advantage of e-grocery and 29% of the business comes from these channels. 
 
Around 11% of LocalBanya’s deliveries are done during the 10 pm-12 midnight slot. And the last trend brings us back to the convenience factor. How many e-grocers or physical retail stores in India would be doing that in a bid to break out of the pack?

This E-grocery Start-up Uses A Lean Model For Its Online Supermarket; In Talks To Raise Series B
Funding

Both indices, <keyword id="19896381" type="General" weightage="100" keywordseo="Nifty" source="keywords">Nifty</keyword> and <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword>, closed in red, with Nifty closing at 24,323.85 points, down by 0.09%, while Sensex closed at 79,996.60 points, down by 0.07%. All broad market indices closed in green, except for <keyword id="20110975" type="General" weightage="20" keywordseo="India-VIX" source="keywords">India VIX</keyword>, which closed 1.24% down. As for sectoral indices, financial services were down by 1% and banks were down by 0.83%. On the other hand, FMCG (up by 1.08%), <keyword id="19933821" type="General" weightage="20" keywordseo="pharma" source="keywords">pharma</keyword> (1.29%), PSU Bank (1.25%), healthcare (up by 1.27%), and oil and gas (up by 1.89%) were among the leading indices. <keyword id="19923397" type="General" weightage="20" keywordseo="ONGC" source="keywords" meta.keywordsubtype="org" meta.entityname="ONGC" meta.hostid="261" meta.entityid="ONGC">ONGC</keyword> (up by 4.06%), <keyword id="19936674" type="General" weightage="20" keywordseo="Reliance" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance" meta.hostid="261" meta.entityid="Reliance">Reliance</keyword> (up by 2.63%), Britannia (up by 2.09%), and Cipla (up by 1.98%) were amongst the day's leading stocks. On the other hand, <keyword id="19896378" type="General" weightage="20" keywordseo="HDFC" source="keywords" meta.keywordsubtype="org" meta.entityname="HDFC" meta.hostid="261" meta.entityid="HDFC">HDFC</keyword> Bank (down by 4.5%), <keyword id="20007884" type="General" weightage="20" keywordseo="Titan" source="keywords" meta.keywordsubtype="org" meta.entityname="Titan" meta.hostid="261" meta.entityid="Titan">Titan</keyword> (down by 1.90%), LTI Mindtree (down by 0.85%), Tata Steel (down by 0.73%), and IndusInd Bank (down by 0.61%) were among the day's laggards. Out of the 2,773 stocks traded today, 1,609 saw advances, 1,083 saw declines, and 81 remained unchanged. 245 stocks hit their 52-week high price, while 13 stocks also hit their 52-week low. 148 stocks hit the upper circuit during the day, while 45 stocks hit the lower circuit. Reliance shares caught momentum today, in anticipation of <keyword id="19896911" type="General" weightage="20" keywordseo="reliance-jio" source="keywords">Reliance Jio</keyword> bringing forth an IPO soon. The company, valued at Rs 11.11 lakh crore, could very well bring India's biggest IPO worth around Rs 55,000 crore. This is because companies with a valuation beyond Rs 1 lakh crore will have to sell at least a 5% stake in their IPO. A recent hike in tarrifs, and an attempt to increase their ARPU (average revenue per user) indicate that the company might announce the same in their annual general meeting next month. As per Shrikant Chouhan, Head of Equity Research, Kotak Securities, "Indian equity market sentiments remained positive with both the Sensex 30 and the Nifty 50 index reaching a new high this week. On a weekly basis, the BSE 30 and Nifty 50 indices gained more than 1%, while the BSE Midcap and BSE Smallcap indices outperformed the large-caps index. Amid the positive market momentum, most of the sectoral indices reported positive gains this week. BSE IT services performed strongly ahead of the upcoming Q1FY25 earnings season. Oil prices have been gradually inching upwards over the past one month, which needs to be monitored. "Over the next few weeks, the key events for the market include macro factors, the <keyword id="19908389" type="General" weightage="20" keywordseo="union-budget" source="keywords">Union Budget</keyword>, and the Q1FY25 earnings. Individual stocks will be in focus on Q1 FY25 earnings and management commentary over the coming few weeks", he continued. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd. highlights that the domestic benchmark indices, Sensex and Nifty, ticked lower initially. "However, strong buying in the last half-hour, led by index leaders Reliance Industries and State Bank of India, pushed the Nifty to settle the day on a positive note at 24,324. The broader market outperformed the benchmarks, with the Nifty midcap and smallcap indices gaining more than 0.5% each. Technically, the Nifty managed to defend the 24,200 support level on a closing basis, indicating strength. As long as the index holds this support, it may attempt to test the levels of 24,500–24,600", he notes. Also Read <a href="https://www.businessinsider.in/stock-market/news/raymond-shares-hits-record-high-after-textile-companys-board-announces-demerger-of-real-estate-arm/articleshow/111504815.cms" data-type="tilCustomLink">Raymond shares hits record high after textile company's board announces demerger of real estate arm</a>

Stock market closing: Reliance, ONGC rally, HDFC and Titan amidst laggards

<ul><li>Analysts say FMCG, auto makers and clothing company stocks are expected to witness strong demand.</li><li>Raksha Bandhan, Ganesh Chaturthi, Navratri, Diwali, Dussehra are considered auspicious for purchases of valuable items like automobiles, apartments or even going on a shopping spree for clothing, watch,electronics etc.</li><li>Besides, India’s consumption story is coming across to be strong even as Inflation may be hurting household budgets.</li></ul>Festive season that starts from August and runs till December brings limelight on company stocks, whose products and services are in high demand during the period. The festivals of Raksha Bandhan, Ganesh Chaturthi, Navratri, Diwali, Dussehra are considered auspicious for the purchase of valuable items like automobiles, apartments. Also, people tend to go on shopping sprees this season for clothing, watches, electronics etc. Analysts say FMCG stocks are best performers during the season led by demand for sweets, chocolates and snacks. “Festive season is around and some stocks in sectors like FMCG, auto, banking might see some good action due to increased demand during these times. Recently there has been a record growth in auto sales with long waiting times, in spite of the inflation concerns. Some stocks to look for could be Tata Motors, Mahindra and Mahindra,Titan and other banking stocks,” Manoj Dalmia, founder and director at Proficient Equities told Business Insider India. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><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;">Festive stocks </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;">% returns in last one year </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;">Tata Motors </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;">59% </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;">M&amp;M </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;">60% </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;">Maruti Suzuki </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;">26% </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;">Titan </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;">34% </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;">DMart </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;">18% </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;">Shoppers Stop </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;">159% </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;">Manyavar </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;">27% </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;">Raymond </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;">127% </td></tr></tbody></table> And, there are weddings too Right along with the festival season comes the wedding season and that’ll spur the demand even further – making the season of shopping sprees last longer. “FMCG stocks tend to do well during festive season with stocks like DMart, Shoppers Stop being in the limelight. Apart from the festive season, it’s also the marriage season so stocks like Manyavar, Raymond, these stocks would be back in focus because of the shopping spree,” Kranthi Bathini, director of equity strategy at WealthMills Securities told Business Insider India. Moreover, India’s consumption story is coming across to be strong even as inflation may be hurting household budgets. Consumers, experts say, are not yet cutting back on discretionary items like skincare and cosmetics. In a recent interview with Nykaa CEO Achint Nayar he said that consumers are not cutting back on small luxuries despite inflation. Especially in the premium category, there are fewer consumers who are unlike in the case of FMCGs in the last few months. Morgan Stanley too backed the India consumption story and said in a recent report that it consumption will pick up in the coming quarters, as the economy is now fully reopened and supported by job creation and income growth. It says that <a href="https://www.businessinsider.in/business/news/healthy-household-balance-sheets-will-push-auto-consumer-goods-sales-morgan-stanley/articleshow/93473239.cms">India’s household balance sheets </a>are healthy and a conducive macro backdrop will keep consumer confidence high. “India’s consumption story is not a one day or one season story, it's going to be a much buoyant story in the coming days because the disposable income of people is going up. Besides, despite the increase in interest rates, real estate is picking up as people tend to book during the festive season,” added Bathini. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/food-delivery-startup-qmin-claims-to-be-the-only-profitable-business-among-its-peers-like-zomato-swiggy/articleshow/93520527.cms">Taj Hotels’ Qmin food delivery app claims to be the only profitable business among its peers</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/avatar-2-black-panther-2-ant-man-here-is-a-complete-list-of-hollywood-movies-expected-to-hit-indian-theaters-in-the-next-6-7-months/articleshow/93522825.cms">Avatar 2, Black Panther 2, Ant Man — Here is a complete list of Hollywood movies expected to hit Indian theaters in the next 6-7 months</a>

Here’s a list of stocks that can benefit from the festive season

<ul><li>Both the indices were down by 0.60% – <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> was hovering at 61,359 points, while <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> was at 18,145 points.</li><li>HDFC twins fell by over 5% after index provider MSCI tweaked the weight of the merged entity below street expectations.</li><li><keyword id="118623" type="General" weightage="20" keywordseo="adani-enterprises" source="Orion">Adani Enterprises</keyword>, <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>, <keyword id="62356" type="General" weightage="20" keywordseo="tvs" source="Orion">TVS</keyword>, Hero MotoCorp, <keyword id="6359432" type="General" weightage="20" keywordseo="britannia" source="Orion">Britannia</keyword> are amongst <keyword id="73648" type="General" weightage="20" keywordseo="stocks-to-watch" source="Orion">stocks to watch</keyword> today.</li></ul>India’s benchmark indices Sensex and Nifty50 were trading lower on Friday amid uncertainty in global markets. HDFC twins fell by over 5% after index provider MSCI tweaked the weight of the merged entity below street expectations. Both the indices were down by 0.60% – Sensex was hovering at 61,359 points, while Nifty50 was at 18,145 points. Top gainers and losers on Nifty50 <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><col /><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;">Titan </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;">2.42% </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;">HDFC Bank </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;">-5.23% </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;">1.85% </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;">HDFC </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;">-5.08% </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;">Adani Ports &amp; SEZ </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;">1.55% </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;">Tata 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;">-2.03% </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;">1.53% </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;">UPL </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;">-1.62% </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;">ICICI Bank </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;">1.49% </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;">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 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.49% </td></tr></tbody><tbody></tbody><tbody></tbody></table>Source: NSE, as on May 5, 2023 Earlier on Thursday, both the indices rose 0.9% to touch their respective 2023 peaks – Sensex closed at 61,749 points while Nifty50 rose to 18,256 points. Gold and silver prices continued to be on the boil – gold prices touched ₹61,500 per 10 grams while silver rose rapidly to cross the ₹78,000 per kilogram mark. Crude oil prices remained soft, with Brent crude hovering around $73 per barrel. US markets plummet on banking sector woes Markets in the US continued to fall on Thursday amid banking sector woes. Trades were halted in Western Alliance Bancorp, PacWest Bancorp and First Horizon Corporation, while Goldman Sachs Group’s role in the Silicon Valley Bank deal was also being looked into. As a result, Dow Jones closed 0.9% lower, while S&amp;P 500 fell 0.7%. The tech-heavy Nasdaq fell 0.5%. Markets in Asia were trading mixed on Friday morning – while Hang Seng and Nikkei 225 rose 0.30% and 0.12% respectively, Taiwan Weighted and KOSPI were flat. Shanghai Composite, however, fell 0.51%. <cmsannotation type="cmsannotation" annotationid="Stocks to watch" comment="subhead" text="Stocks to watch">Stocks to watch</cmsannotation> Adani Enterprises: The Gautam Adani company reported a net profit of ₹722 crore for the fourth quarter, more than doubling it from ₹304 crore a year ago. Driving the profitability were the company’s capital-intensive airports and roads businesses. For FY23, the net profit more than tripled to ₹2,473 crore from ₹777 crore a year ago. TVS Motor: The company’s standalone net profit jumped 49% to ₹410 crore in March quarter from ₹275 crore during the same period last year on the back of strong sales. Meanwhile, its revenue from operations in the quarter grew 19% at ₹6,605 crore as compared to ₹5,530 crore last year. Hero MotoCorp: India’s largest two-wheeler manufacturer beat analyst <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q4-results-pat-beats-estimates-jumps-37-yoy-to-rs-859-cr-revenue-up-12/videoshow/99989882.cms">estimates</a> to deliver a 37% YoY rise in standalone net profit to ₹859 crore in Q4, aided by price hikes, cost cutting and improved product mix. The company posted a 17% growth in its FY23 net profit, which rose to ₹2,911 crore. Dabur: The FMCG major’s profit during the March quarter grew marginally by 2.25% to ₹300 crore while its revenue went up 6.35% to ₹2,677 crore. It announced a final dividend of ₹2.70 per share for FY23. Raymond: The company’s board will meet on May 6 to consider a proposal for raising up to ₹2,200 crore through non-convertible debentures for paying external debt. United Breweries: The beer maker’s profit tanked sharply in the March quarter by 94% to ₹9.87 crore from ₹163 crore a year ago. However, revenue from operations were up 11% to ₹4,081 crore. Earnings today: Britannia Industries, Adani Power, Marico, One97 Communications (Paytm), Bharat Forge, Blue Dart, DCB Bank, Equitas Small Finance Bank, Federal Bank, Gujarat Fluorochemicals, Piramal Enterprises among companies to report their March quarter earnings. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/auto/news/tvs-motors-q4-net-profit-jumps-49-on-year-to-410-crore/articleshow/99991586.cms">TVS Motor’s Q4 net profit jumps 49% on year to ₹410 crore</a> <a href="https://www.businessinsider.in/business/auto/news/hero-motocorp-q4-net-profit-beats-estimates-rises-37-yoy-to-859-crore/articleshow/99989966.cms">Hero MotoCorp Q4 net profit beats estimates, rises 37% YoY to ₹859 crore</a>

Sensex, Nifty50 slip amid weak global cues: HDFC twins tumble over 5%

<ul><li>The 30-stock <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> closed the day at 63,099, up 0.67%, while the 50-stock index <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> closed at 18,758, up 0.75%.</li><li>Earlier in the day, the 30-stock Sensex hit a high of 63,303, while the 50-scrip Nifty50 touched 18,816.</li><li>This is the seventh consecutive day of gains for the Sensex and the Nifty50.</li><li>Analysts are now expecting a further rally in the market that will take the Nifty50 past the 19,000 mark.</li><li>Amongst the most active stocks on the Nifty50 index today were Reliance Industries, <keyword id="6653" type="General" weightage="20" keywordseo="icici-bank" source="Orion">ICICI Bank</keyword>, Infosys, HDFC, and HDFC Bank.</li></ul>India’s benchmark indices Sensex and Nifty50 hit record highs for the third consecutive session on Wednesday, crossing their respective psychological barriers of 63,000 and 18,750, as the market found support from strong fundamentals and foreign inflows. The market was also buoyed by <a href="https://www.businessinsider.in/finance/news/slower-rate-hikes-on-the-cards-say-analysts-ahead-of-rbis-december-monetary-policy-meet/articleshow/95881537.cms">hopes</a> that the Reserve Bank of India would reduce the quantum of its interest rate hike next week. Moderating inflation, cooling crude prices and easing commodity prices are likely to influence the central bank to ease up on the rate hikes, analysts said. Foreign institutional investors (FII) were net buyers on Wednesday, ploughing in ₹9,010 crore, while domestic institutional investors (DII) sold equities worth ₹4,056 crore. Overall, FIIs invested ₹22,546 crore in November in equities, while DIIs sold ₹6,301 crore. Earlier in the day, the 30-stock Sensex hit a high of 63,303, while the 50-scrip Nifty50 touched 18,816. The Sensex closed the day at 63,099, up 0.67%, while the 50-stock index Nifty50 closed at 18,758, up 0.75%. This is the seventh consecutive day of gains for the two indices. In the last five trading sessions, the Sensex has gained 2.16% while the Nifty50 went up by 2.49%. “The beauty of the current rally is that the market is finding support from new sectors every day. In the second half of 2022, there is a clear trend of outperformance of Indian equity markets. This trend is likely to continue despite the fact that we are trading at expensive valuations compared to most of our global peers, as our fundamentals are strong and we have strong support from domestic money,” said Santosh Meena, head of research at Swastika Investmart. Analysts are now expecting a further rally in the market that will take the Nifty50 past the 19,000 mark. “The rotational buying across sectors is fuelling the recent surge while the global markets are not offering any clear signal. We’re now eyeing a new milestone of the 19,000 mark in Nifty,” said Ajit Mishra, VP - technical research at Religare Broking. All sectoral indices closed the day in the green today, with metals, auto, FMCG and realty being the top gainers. PSU banks was the only sectoral index to post a decline today. Most of the Asian markets gained on Wednesday, with Hong Kong’s Hang Seng gaining the most at 2.33%, followed by Korea’s KOSPI at 1.61%. Brent crude oil gained over 2.2%, hovering around $86.1 per barrel. Amongst the most active stocks on the Nifty50 index today were Reliance Industries, ICICI Bank, Infosys, HDFC, and HDFC Bank. Meanwhile, the top gainers on the 50-stock index were Mahindra &amp; Mahindra, Hindalco Industries, Grasim Industries, SBI Life Insurance and UltraTech Cement Top gainers and losers on the NSE on Wednesday <div type="image" title="daily-profit-loss-7" msid="95887613" hostid="261" sizebytes="52380"></div> All in all, 13 stocks hit fresh 52-week highs during the day, including ICICI Bank, Britannia, Apollo Tyres, Indian Railway Finance Corporation (IRFC) and Raymond. The Rupee posted a big gain over the US dollar, rising 34 paise to close at 81.38. It had closed at 81.72 against the dollar on Tuesday. Earlier, analysts at ICICI Direct <a href="https://www.businessinsider.in/finance/news/worst-largely-over-for-rupee-may-appreciate-towards-80/usd-by-end-of-2022-23-says-icici-direct/articleshow/95878404.cms">said</a> that the worst might be over for the Rupee, and that it could appreciate to 80 per US Dollar by the end of FY23. On the BSE, 1,993 stocks moved higher while 1,486 closed lower on Wednesday. <div type="image" title="sectoral-indices-7" msid="95887643" hostid="261" sizebytes="47606"></div> SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/article/its-not-just-mercedes-even-bank-deposits-are-competing-with-equities/articleshow/95879457.cms">It’s not just Mercedes, even bank deposits are competing with equities</a> <a href="https://www.businessinsider.in/finance/news/slower-rate-hikes-on-the-cards-say-analysts-ahead-of-rbis-december-monetary-policy-meet/articleshow/95881537.cms">Slower rate hikes on the cards, say analysts ahead of RBI’s December monetary policy meet</a> <a href="https://www.businessinsider.in/india/news/government-listed-private-companies-capex-to-touch-21-lakh-crore-in-fy23-icici-securities/articleshow/95858117.cms">Capex cycle to touch ₹21 lakh crore in FY23, but there's a catch</a>

Sensex, Nifty50 rewrite all-time highs yet again – RIL, HDFC twins most active, ICICI Bank touches new 52-week high

<ul><li>Every billionaire from Mukesh Ambani to Sunil Mittal to Ratan Tata to Azim Premji has donated to the Prime Minister's fund, some CEOs have taken pay cuts but that's not enough.</li><li>The unemployment rate in India has gone from about 8% to 23% in March and there are looming fears of more job losses and salary cuts when the middle class and poorer sections of the people need money to survive and, may be, for treatments. </li><li>The Narendra Modi government can replicate the US model of offering 'payroll protection' via incentive for those firms who do not fire people during the lockdown meant to curb the spread of the Covid-19 coronavirus.</li></ul>Every billionaire worth his salt from Mukesh Ambani to Sunil Mittal to Ratan Tata to Azim Premji has donated to the fund set up by Prime Minister Narendra Modi to fight coronavirus. Founders of many unicorn startups from Ola’s Bhavesh Aggarwal to Paytm’s Vijay Shekhar Sharma and many more have taken steps to contribute in their own way. Many top bosses have also <a href="https://www.businessinsider.in/business/startups/news/ritesh-agarwal-to-take-a-100-pay-cut-oyo-sets-up-a-welfare-fund-for-coronavirus-hit-hotel-partners/articleshow/74950054.cms">taken pay cuts</a> but that’s not enough given how unprecedented the coronavirus crisis is. Just like the <a href="https://www.businessinsider.in/india/news/how-the-governments-new-lockdown-rules-will-affect-your-day-if-you-live-in-a-city/articleshow/75155813.cms" data-type="tilCustomLink" target="_blank">new lockdown guidelines</a> for the commoners, may be it is time for Modi government to outline the steps the companies and business owners ⁠— the chest-thumping patriots on other days ⁠— must abide by. There seems to be a looming fear of layoffs, job losses, and salary cuts consuming public sentiment every day. If there is anything the <a href="https://www.businessinsider.in/india/news/migrant-workers-protest-at-bandra-railway-station-in-mumbai-demanding-to-go-home/articleshow/75143150.cms" data-type="tilCustomLink" target="_blank">Bandra incident has taught us</a>, it will take less than a spark to cause another round of coronavirus contagion aside from the fact that civil unrest is the last thing India needs. <div type="Article" hostid="261" msid="75156256" title="Lockdown 2.0: Money and jobs gone, stranded migrants desperate to return home" mstype="2" mssubtype="0"></div> The level of unemployment in India went up from nearly 8% to 23% in March 2020, according to the <a data-type="tilCustomLink" target="_blank">Centre for Monitoring Indian Economy</a>. <div type="image" title="CMIE" msid="75156251" hostid="261" caption="&amp;lt;p&amp;gt;The level of unemployment in India went up from nearly 8% to 23% in March 2020, according to the Centre for Monitoring Indian Economy. &amp;lt;/p&amp;gt;"></div> We can’t save every job but we can save enough to stop the country and the society from imploding. And the Narendra Modi government can offer a helping hand like the Donald Trump administration in the US did with the <a href="https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp">Paycheck Protection Program</a>. It is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. <div type="Article" hostid="261" msid="75130701" title="India’s looming jobs crisis is starting to unravel within the first 21 days of coronavirus lockdown" mstype="2" mssubtype="0"></div> The US government agency for small businesses will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. India, as a developing country, may not afford to forego loans and therefore, the programme can be tailored to the Indian context. What are the specific steps that can be taken in India? <ol><li>The government should incentivise companies with the promise of cheap bank loans post lockdown, or tax-related incentives, as long as they have the same number of employees on their rolls as on July 1 compared to say March 31. For those who have already fired employees or staff, can be incentivised with zero-interest loans if they are able to rehire quickly and maintain salary levels.</li><li>The companies, individually or via industry lobbies, can create a separate fund, or a pool of funds that can be used to keep channel partners, distributors, dealers, and other nodes in the value chain afloat, and ensure that their staff and the salespeople are paid. The companies can either decide to forego the loan to the channel partners or get zero interest on it. </li><li>The government can either contribute a portion of the money (ike it has for the employee provident fund) to such funds right now, or ask banks to lend to these companies at zero/subsidised rates only for the purpose of keeping jobs intact.</li><li>Publicise these measures well enough that people are able to hold their employers (past or present) accountable. </li></ol>The big picture! The channel partners ⁠— from FMCG to automobiles to technology and other similar sectors ⁠— and the layers below them need to be supported so that once the lockdown lifts the chain can be revived at the earliest. The top four sectors together employ nearly 250 million in India. <div type="image" title="jobs" msid="75156326" hostid="261" caption="&amp;lt;p&amp;gt;India needs a jobs protection programme just like the one in the US announced by President Donald Trump.&amp;lt;/p&amp;gt;"></div> There are at least two intangible benefits that will arise out of this. The image of the company/promoter will get a huge fillip. Everyone in India knows how the <a href="https://www.livemint.com/Opinion/pkxDzBTGCNGCUdt7XdpRMN/What-now-Mr-Tata.html" data-type="tilCustomLink" target="_blank">Tata Group’s 'clean' image</a> has survived generations despite many allegations and controversies. This will also help the employees appreciate the generosity of the employer and reduce attrition to a great extent. The level of mutual trust and respect between the company and employee may boost commitment and efficiency over the long term. Even during the ongoing coronavirus crisis, there have been some exceptions. Reliance Industries, for example, has declared that <a href="https://www.businessinsider.in/business/news/reliance-employees-who-earn-less-than-30000-will-be-paid-twice-a-month-in-the-wake-of-coronavirus/articleshow/74775193.cms">salaries will be paid </a>twice a month for those earning less than ₹30,000 a month. Capgemini India, Cognizant and others <a href="https://www.businessinsider.in/careers/news/capgemini-india-cognizant-and-others-who-are-giving-salary-hikes-in-times-of-coronavirus/articleshow/75151960.cms" data-type="tilCustomLink" target="_blank">are giving salary hikes</a> despite business coming to a standstill due to the pandemic. <div type="Article" hostid="261" msid="75117512" title="These are the job listings in top e-commerce companies posted after April 1" mstype="2" mssubtype="0"></div> What is missing in the current support system and the stimulus? There have been many thousand jobs cut especially for those working on contract. Anecdotal evidence suggests that people employed with dealers, distributors, channel partners' sales staff of even big companies like Hindustan Unilever (HUL), Raymond, nearly all car makers, and in many more sectors, have already been ‘let go’. "Hindustan Unilever Limited (HUL) is taking all necessary measures to protect the interests of its employees, support staff, distributors and partners during these difficult times. We are committed to working on their safety, employment, salary protection, and are taking several steps on these matters. For e.g., we recently offered COVID-19 medical insurance cover to all frontline sales force and distributor employees (loaders and delivery staff) where premium for the cover is paid by HUL," the company said in a statement in response to this report. <div type="Article" hostid="261" msid="74959653" title="OYO reportedly invokes ‘Act of God’ clause to suspend payments to hotel owners says report" mstype="2" mssubtype="0"></div> The government's $22 billion stimulus is trying <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitharaman-26th-march-speech-highlights-and-updates/articleshow/74825011.cms" data-type="tilCustomLink" target="_blank">to support the poorest of the poor</a> with direct cash transfers, subsidised grain and cooking gas etc. the rich have the wherewithal to sustain a longer lockdown, but the same safety net is not available to those who are considered middle class in India, especially those who work in the unorganised sector. Even those earning, say, ₹50,000 a month may not have savings to sustain a family during a lockdown without a job and cash flow. However, Prime Minister <a href="https://www.businessinsider.in/india/news/what-are-the-7-rules-during-lockdown-as-per-pm-narendra-modi/articleshow/75134637.cms" data-type="tilCustomLink" target="_blank">Modi expects him or her to continue paying</a> their domestic help, the guy who washes their cars or motorcycles etc. What is the private sector doing? Cribbing! One executive after another is arguing about how the government has not done enough to make this lockdown easier than what it is. Calculating! Companies across the board are making lists of people who can be fired. It is not like FMCG sales have come to zero but people lower in the value chain have . It is justified to a certain extent. <a href="https://economictimes.indiatimes.com/news/economy/finance/view-one-contagion-is-more-than-enough-for-india/articleshow/75153054.cms" data-type="tilCustomLink" target="_blank">For example</a>, borrowers have been exempt from repaying loans for three months but the non-banking finance company who they borrowed from is not. As is the case with most bureaucratic decisions, this could be an oversight and this can, and should be corrected, soon. Clamouring! Aside from this, there is a clamour for everything from corporate tax cut to GST relief. Many of them have donated money to the PM-CARES fund but it is unlikely to trickle down to the exact value chains that companies have a stake in. <div type="Article" hostid="261" msid="75143211" title="Hero MotoCorp supports lockdown extension, seeks stimulus package for India Inc" mstype="2" mssubtype="0"></div> What should the companies do? Be realistic! The government or the companies or the billionaires, or any institution for that matter, cannot protect or save everyone but efforts have to be made to go as deep as we can reach with the support. Be generous! When a bank seems to be going down, one of the first steps that the Reserve Bank of India (RBI) takes is to ask the promoter to bring in more capital. Other businesses can look at the current crisis the same way. Billionaire promoters may lead the way and bring some additional capital to the table, let it trickle down the value chains that will help them thrive during better times. It may be time for Prime Minister Modi to call for the support of his fans in India Inc to ensure that his poorer fans don’t get disillusioned or angry. SEE ALSO: <a href="https://www.businessinsider.in/india/news/no-lifts-no-group-lunches-and-other-guidelines-that-offices-factories-should-follow/articleshow/75154853.cms" data-type="tilCustomLink" target="_blank">No lifts, no group lunches and other guidelines that offices, factories should follow</a> <a href="https://www.businessinsider.in/india/news/cabinet-to-approve-pension-contributions-advances-announced-by-the-fm/articleshow/75153467.cmshttps://www.businessinsider.in/india/news/cabinet-to-approve-pension-contributions-advances-announced-by-the-fm/articleshow/75153467.cms" data-type="tilCustomLink" target="_blank">Cabinet to approve pension contributions advances announced by the FM</a> <a href="https://www.businessinsider.in/india/news/all-agricultural-and-horticultural-activities-will-resume-from-april-20-and-create-jobs-for-daily-wagers/articleshow/75154111.cms" data-type="tilCustomLink" target="_blank">New guidelines for all agriculture and related activities that can restart from April 20</a> <a href="https://www.businessinsider.in/policy/economy/news/what-narendra-modi-can-learn-from-donald-trump-2-trillion-stimulus-in-us/articleshow/74805256.cms" data-type="tilCustomLink" target="_blank">Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it</a>

You Searched For "Raymond FMCG" and got 12 results

Raymond group sells FMCG biz to Godrej for Rs 2,825 crore in all-cash deal

PTI

Godrej Consumer has to double Raymond’s consumer business for it to be earnings accretive, say analysts

Katya Naidu

Indian markets end higher after a choppy session – PSU banks, IT, FMCG gain

Bhakti Makwana

EXCLUSIVE: Two revelations and a fiery defence from Raymond’s boss Gautam Singhania

Sriram Iyer

FMCG: The trends to watch out for in 2021

Karuna Sharma

From Shoppers Stop and Raymond to small retailers ⁠— thousands of people have lost their jobs

Sanchita Dash

This E-grocery Start-up Uses A Lean Model For Its Online Supermarket; In Talks To Raise Series B Funding

Sanghamitra Mandal

Stock market closing: Reliance, ONGC rally, HDFC and Titan amidst laggards

Ira Alok Puranik