Bit by Bit 2nd Sept. || Tried Crab Whiskey? || Reliance to Enter FMCG Market || Automotives on growth trajectory & More

Greetings IMTians! We are thrilled to announce our new initiative "Bit by Bit" - A fun and exciting way for B-school students to get the most interesting and relevant news daily right at their fingertips.

Our Aim:

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MARKET UPDATE

• BSE SENSEX : ₹58,766.59 (-1.29%)

• NIFTY 50 : ₹17,542.80 (-1.22%)

• NIFTY BANK : ₹39,301.25 (-0.60%)

• USD/INR : ₹79.647 (+0.16%)

• GOLD MCX : ₹50,052.00 (-0.72%)

• BRENTOIL : $92.64 (-3.17%)

• FII Net Cashflow : -₹2,290 crores

• DII Net Cashflow : +₹951 crores

As of 4.30 PM Thursday

ECONOMY

A STEP CLOSER TO BECOMING A PROSPEROUS ECONOMY  

Key Facts:

• India will become the 6th largest Insurance market by 2032

• Indian Insurance Market will grow at a pace of 14% P.A

• The Life Insurance Premiums in India are set to cross USD 100 billion for the first time in 2022

The Story:

A report by Swiss Re Institute said that India is set to become the sixth biggest insurance market in the world in the next ten years owing to the regulatory push and rapid economic expansion. 

"In 2022, the growth will slightly slow to 4.5 percent, primarily because of high inflation. But between 2023 and 2032, the sector is also anticipated to increase at a rate of close to 8% Compounded Annual Growth Rate (CAGR) "It read. The pandemic's methodical transformation of India's non-life insurance industry is one of the key drivers of the country's growth. Health insurance became more in demand as a result of increased risk awareness, making it the most significant Line of Business (LoB) by premium volume in 2021.

Inflation and monetary policy tightening are driving long-term sovereign bond yields higher, with markets pricing in both higher real yields and inflation expectations, adding that insurers will, over time, benefit from higher investment returns that will help offset the higher claims cost. 

FMCG

Reliance Retail set to enter the FMCG Market: A new challenge for existing FMCG players

Key Facts:

• Isha Ambani to become the new leader of Reliance Retail Ventures Ltd. – Mukesh Ambani, Chairman and MD, RIL.

• Announcement made at RIL’s 45th Annual General Meeting (AGM) on 29th of August

• Currently, private label’s contribution stands at 65% of company’s total revenue

• General trade accounts for 80-90% of FMCG sales

The Story

The announcement by RIL has created a lot of buzz recently. Experts are of the opinion that this move by RIL is going to intensify the competition in the FMCG market owing to reliance’s aggressive growth strategies. With its entry into FMCG domain, reliance will be in direct competition with FMCG giants like HUL, Britannia, Marico, and others.

Reliance Retail has already a presence in the FMCG domain via modern trade through its private labels which are being sold in its retail outlets. This includes brands like Desi kitchen, Good Life, Best Farms etc. Reliance Retail is now eyeing on general trade with its initial expansion of private label brands into both food and non-food segments. Along with organic expansion the company will also look for acquisitions said Devangshu Dutta, CEO of retail consulting firm Third Eyesight.

As per experts, decades of loyalty and trust build by the existing brands will be a tough nut to crack for Reliance Retail. Getting shelf space in the kiranas would be another major challenge. Constant innovation will be needed to stay ahead of the curve

AUTOMOTIVE

Maruti Suzuki records 30% growth in domestic PV sales for August.

Key Facts:

• This July, Maruti Suzuki had a market share of 39 percent.

• The Japanese- Indian Automaker would invest Rs 10,440 crore to build a new electric car (3,000 crore) and battery factory in India.

The Story:

Maruti Suzuki India Limited has reported a 30% increase in its domestic passenger vehicle sales in August 2022 as compared to August 2021. The total domestic sales for the company were 143,692 units and the total sales for August added up to 164,173 units. The company cited shortage of electronic components as a minor hindrance to production of domestic models but took all possible measures to minimize the impact according to the company spokesperson. The company’s exports stand at 21,481 units for the month of August.

TECH

Will Activision's $69 billion merger with Microsoft happen?

The Story:

Microsoft Corp. doesn't provide solutions to allay the UK watchdog's concerns, the $69 billion acquisition of Activision Blizzard Inc. by the tech giant will be subject to a thorough review.

The market for gaming consoles, multi-game subscription services, and cloud gaming have all seen significant declines in competition, according to the Competition and Markets Authority. It gave Microsoft until September 8 to reach an amicable settlement with the organization.

The combination with Activision -- which owns some of the most popular franchises including Call of Duty, World of Warcraft, and Guitar Hero -- will make Microsoft the world’s third-largest gaming company and boost the Xbox maker’s roster of titles for its Game Pass subscribers.

 Sorcha O'Carroll, senior director of mergers at the CMA, said, "We are concerned that Microsoft could use its control over well-known games like Call of Duty and World of Warcraft after the merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming."

Want More Bits?

A distillery is fighting invasive crabs by turning them into whiskey

The Story:

They're small. They're green. They're crustaceans. And now, they're in whiskey. 

Green crabs are the invasive pests that have plagued North America's marine ecosystems for more than 200 years. A New Hampshire distillery is taking on the problem by using them to make green crab-flavored whiskey. Green crabs are so abundant that it will take a lot more than whiskey to curb the population, but some hope bringing awareness to the issue will lead to creative solutions.

Each bottle of whiskey uses about a pound of green crabs, but one distillery doesn't make much of a dent in the green crab population. That's because their numbers are out of control. They are probably one of North America's most successful invasive species, at least in the marine world.

Currently, there's no commercial incentive for crabbers to harvest green crabs on a large scale to make an impact. But environmentalists hope new products that use the crab-like fishing bait, whiskey, fish sauce, and more – could change that.

Whiskey is just "the hook, to get people informed. "And the more people hear about it, then we get more and more people who might have a great, innovative idea that we haven't touched upon."