Bit by Bit 15th Sept || FabIndia to go public || Dabur's incredible growth story & more

Good Morning! Just like Urvashi Rautela apologised to Rishabh Pant, we also apologise for yesterday’s delay in bit by Bit. 

So, here are:

Happy reading!

MARKET UPDATE

• BSE SENSEX : ₹60,346.97 (-0.37%)

• NIFTY 50 : ₹18,003.80 (-0.37%)

• NIFTY BANK : ₹41,405.40 (+1.30%)

• USD/INR : ₹79.492 (+0.05%)

• MCX GOLD : ₹50,021.00 (-0.23%)

• BRENT OIL : $93.99 (-0.12%)

• FII Net Cashflow : - ₹1398 crores

• DII Net Cashflow : + ₹188 crores

(Market data as of 11:00 PM on 14th September 2022)

ECONOMY

Fabindia planning to go public

Key Facts:

• Fabindia is a 60-year-old legacy handloom brand founded by William Nanda Bissell and headquartered in New Delhi.

• Fabindia received the SEBI nod to its proposed IPO of INR4,000 crore in January 2022.

• The company plans a fresh issue of shares worth INR500 crore and offer for sale of 25,050,543 shares by existing investors and shareholders

The Story:

Fabindia is synonymous with handloom and artisan design in the country – a brand endorsed by politicians as well. Fabindia’s USP is its network of 50,000 artisans who help produce and manufacture Organic India products. In 2021, the company reduced its dependency on apparel and had nearly 40% of its revenue generated from non-apparel categories.

While the legacy of the company is well established, it is competing directly with private labels by large-format stores and the rising D2C apparel brands. Post-IPO, the company will be competing directly with the likes of Aditya Birla Fashion & Retail, Page Industries, Shopper’s Stop, Trent, and other listed peers. The stock performance of larger players has been good over the pandemic years. Can Fabindia replicate its success?

FMCG

The incredible growth of Dabur- An Indian based Global Ayurvedic Consumer Goods Company

Key Facts:

• Products from Dabur are available in more than 120 countries worldwide. Currently, the SAARC nations, Africa, the US, Europe, and Russia are all very familiar with the brand. More than 27% of Dabur's overall revenue currently comes from countries other than India, according to reports.

• Dabur's slogan has a history of being altered. The current tagline for Dabur is "Celebrate Life." Other catchphrases used by Dabur are "Live well with Dabur" and "Science-based Ayurveda."

• The Dabur emblem's banyan tree is formed like three people with their arms raised, denoting joy and celebration

The Story:

Dabur is the largest FMCG Company in India and one of the leading Ayurveda accompanies of the world. It initially started off as a small company in Kolkata where the company got its start. Later on, it expanded by fusing ancient wisdom from the past with contemporary science, Dabur—known as the "Custodian of Ayurveda"—produces goods for consumers across generations and geographical borders. With sales of over Rs. 10,800 crores and a market value of over Rs. 100,000 crores, Dabur India Limited is the fourth-largest FMCG company in India.

Dabur is currently the most reputable brand in India and the largest Ayurvedic and Natural Health Care Company in the world, with a selection of over 250 Herbal or Ayurvedic products, thanks to its extensive history of excellence and expertise spanning more than 138 years. About eight Power Brands with distinctive brand identities make up Dabur's FMCG portfolio. More than 27% of Dabur's overall revenue currently comes from countries other than India, according to reports.

The company currently makes up 8.2% of the FMCG market in India and has seen growth of over 100%. Dabur’s current plan is to further expand in the villages. It is without a doubt one of the most well-known multinational consumer goods companies. It was established in Kolkata in 1884 by Dr. S.K. Burman, and today it is well-known in more than 120 countries, including those in the SAARC region. Under the name Dabur India Ltd., Dabur entered the public market in 1986. In the food and personal care sectors, Dabur is a well-known brand with numerous subsidiaries. Dabur's consumer products sector generates 60% of the company's sales, followed by its food division with 11% and its international division with the remaining 40%. Ever since Dabur’s immense growth trajectory, it has not looked back.

AUTOMOTIVE

Electrification impact on the Indian Automotive industry

Key Facts:

• Electric 2w and 3w market share are estimated to be 50 and 70 percent respectively in India by 2030.

• Electric Passenger and Heavy Vehicles are estimated to be in the range of 10-15 and 5-10 percent respectively in India by 2030.

The Story:

In a joint report by Mckinsey and ACMA, Electric 2-wheelers (2w) and 3-wheelers (3w) expect a better market share in India than electric passenger and heavy vehicles. The report quantifies the expected market share of electric 2w and 3w to be 50 and 70 percent respectively by 2030, also electric passenger and heavy vehicles to have 10-15 and 5-10 percent share respectively. Although it is speculative data, Indian automakers expect to have a better hold of conditions currently with all the necessary help from the government in the form of policies that are crucial for the electrification of Indian Automotives. Internal Combustion Engines (ICE) to have better market share in the passenger and heavy vehicles segment because of the lack of infrastructure and affordability concerns with Electric passenger vehicles.

This disruptive transition to EVs is estimated to impact 50 percent of the ICE Bill of Materials (BOM). This development will create space for new industries to join the supply line. The EV BOM components demand motors, new housing for differentials, and different wiring systems. And government policies for Make in India are elevating MSMEs to help automakers (OEMs), and OEMs have to source at least 60 percent of components from India. Ultimately increase the automotive component exports and support all the stakeholders to move into the next phase of growth in the sector.

P.S. :-

• Automotive Component Manufacturers Association (ACMA)

• Original Equipment Manufacturer (OEM)

Extra Bit to Bite 

TECH

Meta Announces Community Chats For Messenger To Take On Discord

The Story :

Meta CEO Mark Zuckerberg announced that “Community Chats” are coming to Messenger and Facebook Groups. The feature allows large Messenger groups to organize chats into categories, including audio and video channels for real-time discussion, admin-only chats for announcements, and event chats. Like Discord, Community Chats are designed to make it easier to keep track of fast-moving conversations involving many people.

“We’re building Community Chats as a new way to connect with people who share your interests,” Zuckerberg wrote. “More than 1 billion people use Messenger to communicate with friends, and soon you’ll be able to start Community Chats from Messenger as well as Facebook Groups.”

This brings us to a critical factor of Community Chats - privacy and safety regulations. The new Meta Community Chats will involve users interacting with strangers. For the same, Meta will offer moderation tools like mute, block, or suspend to allow a healthy community conversation.

Meta also explained the ‘Admin Assist’ feature, where admins can customize criteria to automate moderation. For instance, admins can automatically ban members who use vulgar or abusive language on their community chat. The feature will begin testing and expand to groups in the coming weeks.

Want More Bits?

Researchers Just Found A 500-Year-Old Mummified ‘Goatelope’ Inside A Melting Glacier

While conducting a routine check-in on a nearby weather station, a team of glaciologists working on the Gepatschferner, Austria's second largest glacier, were thrilled to discover a little, goat-like animal preserved inside a partially melted wall of ice.

At a height of more than 11,000 feet, Martin Stocker-Waldhuber, the researcher who made the discovery, observed horns sticking out of the ice, according to National Geographic.