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- Bit by Bit 29th Dec. || Shipments of smartphones "Made in India" declined 8% YoY in Q3 2022, according to a report || Centre introduces authorization certificates for car dealers to check malpractices & more
Bit by Bit 29th Dec. || Shipments of smartphones "Made in India" declined 8% YoY in Q3 2022, according to a report || Centre introduces authorization certificates for car dealers to check malpractices & more
Good Morning Readers!
Anyways, Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,122.50 (-0.05%)
BSE SENSEX : ₹60,910.28 (-0.03%)
NIFTY BANK : ₹42,827.70 (-0.07%)
USD/INR : ₹82.763 (-0.08%)
BRENTOIL : $83.96 (-0.85%)
MCXGOLD : ₹54,336 (-0.38%)
FII Net Cashflow : - ₹873 crores
DII Net Cashflow : + ₹373 crores
(Market Data as of 11:00 PM on 28/12/2022)
Economy
The Story:
Ashima Goyal, a member of the RBI's Monetary Policy Committee (MPC), stated on Wednesday that the government shouldn't pursue an "aggressive budgetary reduction" in the 2019 budget since global concerns continue to exist. According to her, subsidies are expected to decrease as food and energy inflation moderates. The food article WPI inflation in November was 1.07 percent compared to 8.33 percent in October. Inflation in the "fuel and power" category was 17.35% last month.
"Aggressive consolidation should not be done at this time due to concerns about a global downturn. Maintaining the path's minor, previously stated measures would minimize growth sacrifice while regulating demand and the current account deficit, reducing the risk premium that keeps spreads high and increases the cost of public and private borrowing, "PTI cited her. India's fiscal deficit, or the difference between expenditure and revenue, is predicted to decrease from 6.71 percent in 2021–2022 to 6.4% in the current fiscal year ending in March 2023. By FY26, the government wants to reduce the budget deficit to below 4.5%, its established target. The term "fiscal consolidation" describes strategies for reducing fiscal imbalance.
FMCG
The Story:
Large packaged goods companies such as Nestle, Panasonic, Dabur, and Wipro Consumer said they were set to foray into or allocate significant investments in the direct-to-consumer (D2C) segment with their micro-sites and launch online-only brands, joining companies like Hindustan Unilever, ITC, Marico and Emami that began operating their own micro-sites about a year back.
Santoor soap maker Wipro Consumer Care, which has invested in nutraceutical maker Powergummies, ayurvedic company TAC and men’s grooming start-up LetsShave, is looking at the D2C foods space for the first time in the coming year. The company had set aside Rs 200 crore for Wipro Ventures, where it invests in start-ups, of which it still has Rs 100 crore to deploy. The country’s packaged foods maker, Nestle, is also testing its platform, MyNestl, which the company said will curate products, personalized gifting, subscriptions, and discounts.
More than 800 new direct-to-consumer platforms (or those which sell directly to consumers online and not through marketplaces like Amazon or Flipkart) were introduced between January and December 2022, with 40-50 million new shoppers on these platforms, said RPSG Capital Ventures, which has invested in independent D2C companies like Souled Store, caffeine, Videx, and SkinKraft. Sambit Dash, the partner at RPSG, said: “Kids-specific platforms, pet care, health foods, apparel, and athleisure are the categories set to see maximum traction in this space in 2023.”
Most companies are experimenting with their own microsites for premium discretionary products and to protect shares amid dozens of digital-only platforms, a trend that escalated during the pandemic when consumers switched from shopping in malls and markets to online.
AUTOMOTIVE
The Story :
The Ministry of Road Transport and Highways (MoRTH) has introduced authorization certificates for the dealers of registered vehicles to identify the authenticity of a dealer, a move that will promote ease of doing business and transparency in the sale and purchase of registered vehicles.
The pre-owned car market in India has been gradually gaining ground. In recent years, the advent of online marketplaces, which are involved in buying and selling of pre-owned vehicles has further given a boost to this market.
“In the current ecosystem, many issues were being faced during transfer of vehicle to subsequent transferee, disputes in regard to third party damage liabilities, difficulty in determination of defaulter among others,"
Under the new rules, an authorization certificate for the dealers of registered vehicles has been introduced to identify the authenticity of a dealer.
Dealers have been empowered to apply for renewal of registration certificate or the renewal of certificate of fitness, duplicate registration certificate, No Objection Certificate, transfer of ownership, of motor vehicles in their possession.
As a regulatory measure, maintenance of an electronic vehicle trip register has been mandated which would contain details of the trip undertaken such as trip purpose, driver, time, mileage among others.
TECH
The Story:
In the September quarter, 52 million made-in-India smartphones were shipped, down 8% year over year (YoY), according to a Counterpoint analysis released on Tuesday. The research company's analysts explained it by a fall in consumer demand both in India and on international markets. Around 7 million of the 52 million cellphones that were shipped during the September quarter were exports, they noted. Even if the quantity of smartphones produced in India has increased, production during the quarter was also hampered by the large channel inventory at the beginning of the quarter, according to Prachir Singh, senior research analyst at Counterpoint Research. Almost 63% of smartphone shipments in India, he continued, came from internal manufacturers, with the remaining 47% coming from outside electronics manufacturing services (EMS) suppliers. Oppo, a Chinese smartphone manufacturer, had the highest market share for Made-in-India shipments during the quarter at 23.8%, followed by Samsung (20.7%) and Vivo (12.4%). EMS suppliers like Dixon, which also produces phones for Samsung, and Foxconn subsidiary Bharat FIH, which produces handsets for Xiaomi (8.5% of the shipments were made by these companies, respectively). According to the research, Lava and the Chinese company BYD had the fastest-growing smartphone manufacturing industries in terms of shipments. Singh is certain that shipments of smartphones would increase despite the decline. "PLI payouts will continue in coming quarters, which will enhance the local industrial scene," he continued. Singh further emphasized that recent alliances between companies like Tata Group and Wistron and Foxconn and Vedanta will help manufacturing grow even more. According to an ET story from November, Tata Group is in negotiations with Wistron to purchase its iPhone manufacturing facility in Karnataka for an estimated price of around $600 million. In September, Foxconn and Vedanta revealed a joint venture in which they will invest $20 billion to build semiconductor factories in Gujarat.
Anything Interesting
10 unmissable books of 2022 on business, economics, and finance
The world has too many choices. Books are no exception to this, sometimes making it difficult for readers to decide what to read and what to avoid. So, as 2022 comes to an end, here’s a curated list by Mint of 10 unmissable books on business, economics, and finance, published during the year. The listed books are in no particular order, each one of these books will help you make more sense of the complicated world that we live in.
1. Edible Economics—A Hungry Economist Explains the World by Ha-Joon Chang
2. South vs North—India’s Great Divide by Nilakantan R.S.
3. Four Thousand Weeks—Time Management for Mortals by Oliver Burkeman
4. Popping the Crypto Bubble —Market Manias, Phony Populism, Techno-Solutionism by Darren Tseng, Stephen Diehl, and Jan Akalin
5. Price Wars—How Chaotic Markets Are Creating a Chaotic World by Rupert Russell
6. The Journey of Humanity—The Origins of Wealth and Inequality by Oded Galor
7. Money in One Lesson by Gavin Jackson
8. Chokepoint Capitalism—How Big Tech and Big Content Captured Creative Labor Markets and How We’ll Win Them Back by Rebecca Giblin and Cory Doctorow
9. The Price of Time—The Real Story of Interest by Edward Chancellor
10. The Truth Pill—The Myth of Drug Regulation in India by Dinesh S. Thakur and Prashant Reddy T.
Happy reading!!!
