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- Bit by Bit 27th Dec. || Bars, eateries look to non-metros for growth || Nearly $700 Mn cash payout in store for Flipkart employees after PhonePe hive off & more
Bit by Bit 27th Dec. || Bars, eateries look to non-metros for growth || Nearly $700 Mn cash payout in store for Flipkart employees after PhonePe hive off & more
Good Morning Readers!
Anyways, Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,014.60 (+1.17%)
BSE SENSEX : ₹60,566.42 (+1.20%)
NIFTY BANK : ₹42,630.15 (+2.31%)
USD/INR : ₹82.65 (-0.16%)
BRENTOIL : $85.02 (+0.62%)
MCXGOLD : ₹54,230 (+0.23%)
FII Net Cashflow : - ₹498 crores
DII Net Cashflow : + ₹1286 crores
(Market Data as of 11:00 PM on 26/12/2022)
Economy
The Story:
The world faces a recession in 2023 higher borrowing costs aimed at tackling inflation cause a number of economies to contract, according to the Centre for Economics and Business Research. The global economy surpassed $100 trillion for the first time in 2022 but will stall in 2023 as policy makers continue their fight against soaring prices, the British consultancy said in its annual World Economic League Table.
“It’s likely that the world economy will face recession next year as a result of the rises in interest rates in response to higher inflation,” said Kay Daniel Neufeld, director and head of Forecasting at CEBR. The report added that, “The battle against inflation is not won yet. We expect central bankers to stick to their guns in 2023 despite the economic costs. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come.”
The findings are more pessimistic than the latest forecast from the International Monetary Fund. That institution warned in October that more than a third of the world economy will contract and there is a 25% chance of global GDP growing by less than 2% in 2023, which it defines as a global recession.
FMCG
Key Facts:
Rural demand for packaged FMCG goods has begun showing signs of revival after nearly two years of slowdown
Good harvest season, inflation slowing among the reasons for the recovery
Government spending and higher MSPs aiding recovery
The Story:
Leading eateries and bars like Lord of the Drinks, Farzi Cafe, Social, and Imperfecto want to expand outside of the major metropolises, so live music, bars, and pubs will soon bring the party feel to Ranchi, Indore, Jabalpur, Raipur, and other similar smaller cities.
"Metro cities have reached a point of no return and have no room to grow. There are virgin marketplaces where there is a lot of demand at the same moment. We have plans to open restaurants in Jaipur, Chandigarh, Indore, Dehradun, and Lucknow in 2023, according to Sharad Madan, co-founder of Bel Cibo Hospitality, which owns the Imperfecto and Khubani network of eateries.
In fact, non-metropolitan cities are home to some of the best-performing stores nationwide. Numerous non-metro cities have received excellent feedback. There is a strong propensity to spend money. However, there aren't many places to spend money, according to Massive Restaurants Private Limited managing director Zorawar Kalra.
Before moving to another metropolis, it is preferable to test out a smaller city where rental expenses are lower and ROI (return on investment) is nearly as high as in a metropolis. According to Akshay Anand, partner of Campbell hospitality, which runs Toy Room and Cosy Box, "We are in discussions to take some of our brands to tier-2, tier-3 locations.
AUTOMOTIVE
The Story :
Toyota Motor Corp. reported that its global output for November reached a record, in part owing to strong customer demand, but it issued a warning about an uncertain future due to a chronic semiconductor scarcity and an increase in Covid cases in China. The #1 carmaker in the world produced 833,104 vehicles in the past month, up 1.5% over the same period last year. The company reported that global sales increased by 2.9% to 796,484 units on Monday.
The production of automobiles reflects strong demand in markets like North America and a recovery from a year ago when supply chains were interrupted by Covid outbreaks in Southeast Asia. Chip and other auto part shortages continue to plague the industry, and the rapid expansion of Covid cases throughout China will present additional difficulties.
Toyota reduced its global production goal for the fiscal year through March at the beginning of November while maintaining a conservative profit forecast due to chip shortages.
According to the report, Toyota's domestic output for November decreased by 3.3% from a year earlier to 266,174 units while its international output increased by 3.8% to 566,930 units.
TECH
The Story:
Friday saw the official announcement of the Flipkart-PhonePe separation process. Flipkart group CEO Kalyan Krishnamurthy wrote an email to staff members telling them of "a one-time discretionary cash distribution as part of the transaction" that will be coming their way. Given that the digital payments platform PhonePe is no longer a part of the e-commerce business, employees who have stock options in Flipkart will receive cash payouts equal to the value of PhonePe included in such holdings.
"This distribution will be an occasion for our staff to create wealth... The internal note, a copy of which ET has seen, from Krishnamurthy stated that eligible employees would soon receive further information and specifics on this reimbursement.
In addition, ET has examined additional internal emails that were received in response to the CEO's statement, which revealed that both vested and unvested options may be exercised as part of the one-time payment. Typically, only vested options are purchased by firms or their investors. According to a report in ET from last month, former employees of Flipkart will also be able to sell their stock, but as of Friday night, no official announcement had been made on this. Sources said former employees had recently received an email, asking them to keep the details of their stock options handy. Flipkart didn’t immediately respond to an email seeking comment, sent on Friday evening.
Anything Interesting
According to a recent poll, workers want greater flexibility in their work and are willing to make concessions to acquire it.
In India, 76.07% of workers indicated they would rather have control over their working hours and would be willing to forgo a wage raise in exchange for the freedom to work from home or rotate between the office and their homes.
Nearly 33,000 workers in 17 countries participated in the "People at Work 2022: A Global Workforce View" study by the ADP Research Institute, which found that 71% of respondents want more flexibility in how they organise their time at work, including the ability to condense hours into fewer, longer days.
People who work from home also discuss career advancement with their companies more frequently. Nearly seven out of ten workers (73%) believe that their employers are aware of and adequately respect them even when they work from home, and 74% say that their employers are receptive to discussing the need for upskilling and additional training.
