COUNTRY,FINANCE,MACROECONOMY,

POLICYANDPOLITICS

The total gross GST revenuecollected in the month ofOctober is Euro 12.13 Billionof which CGST is Euro 1.98Billion, SGST is Euro 2.75Billion, IGST is Euro 6.44Billion (including Euro 3.24Billion collected on imports).The Revenue collected inOctoberishigherby6.64%ascompared to Septembercollection.Indiahas recordeda jumpof23 positions against its rankof 100 in 2017 to be placednow at 77th rank among 190countries assessed by theWorldBank.Ahead of Diwali festival, theRese rve Bank Tuesdayannounced it will inject Euro1.45 Billion into the systemt h r o u g h p u r c h a s e o fgovernment securities onNovember1.Morethan664kmsofMetroRail projects in 15 cities arepresently under variousstages of implementation,while more than 515 kms ofMetro Line are alreadyoperationalinIndia.

During a three-year period(assessment year 2014-15 to2017-18), the number ofsa la r ied taxpayers hasincreasedfrom 17Millionto23Million.Thisisariseof37percent.Theaverageincomedeclared by the salariedtaxpayers has gone up by 19per cent from Euro 6,900 toEuro 8,240.There has alsobeenagrowthof19percentinthenumberofnon-salariedindividual taxpayers from19.5 Million to 23.3 Millionand the average non-salaryi n c om e d e c l a r e d h a sincreasedby27percentfromEuro4,950toEuro6,300.

CONSUMERMARKETS

Electronics•  Voltashasre-enteredtheconsumerdurablemarketthrougha50:50jointventurewithArcelik,aTurkey-basedhomeappliancescompany

withtheplanofexpandingthebrandintovariousproductcategories.Voltas’productsareavailablein15,000outletsacrossthecountryanditplanstoincreaseitspresenceupto25,000retailoutletsand500exclusivebrandoutlets.

•  Xiaomi has now become the second largest consumer electronics player in India. The Company’s India revenue increased by 175% in2017-18toEuro2.77Billiony-o-y,thecompanypostedEuro34.5Millionnetprofit.

Lifestyle-Fashion

•  Marks&Spencer(M&S)isplanningtoopenaround15storesinthenextcoupleofyearsinIndia.TheCompanysold86,000and156,000unitsin2016-17and2017-18respectively.

•  Forever21willbereopeningitsstoreinMallofIndia,NewDelhi,afterrevampingthelookanfeeltoalignitclosertosomeofitsflagshipsacrosstheworld.

•  Trufitt&Hillwillsoonbeopeningthedoorstoits15thstoreinthecountry.ItwillbelocatedintheupscaleresidentialsuburbofJuhuinMumbai,makingitthe5thstoreinthefinancialcapitalofthecountry.

•  ElectronicsgadgetandlifestyleproductretailerWKLifehasopeneditsfirststoreinIndia,atDLFMallofIndiainNewDelhi;markingitsentryintothecountry

•  KoreanlifestylebrandBeccoshasopeneditsfirststoreinthecountryinKamlaNagar,NewDelhi.Beccosoffersarangeofproductsfromhomedécortofashionaccessories.

•  IndianshoebrandNeeman,locallyrenownedfortheuseofnaturalfibresinitsshoes,haspartneredwithWoolmarkCompany,theglobalauthorityonwool,tolauncharangeofshoesmadefromMerinowoolsourcedfromAustralia.

•  Crocs,anAmericanfootwearbrand,whichispresentlyoperating96storesinIndia,willcross100storesbytheendofNovemberwiththeopeningof5newstoresduringthemonth.

•  InOctober,athleisurebrandFilaopeneditssecondheritageflagshipstoreinMumbaianditsfirstoneinPune.

•  IndiancricketcaptainViratKohlihaslaunchedhisfirstpersonallydesignedsneakerincollaborationwithglobalsportswearbrandPuma.

Food&Beverages

•  Amul is focusingon thedark chocolate segment to sustain itsdominant relevance in themarketafternewcompetitors came into themarketlikeFerrero(9%valueshareofthemarket)andMarsoverthepastfewyears.Amul’sin-houseproductioncapacityofchocolateshasincreasedto1,200tonnespermonthafterthelaunchofthesecondplantinGujarat.TheoverallchocolatemarketiscurrentlyvalueatEuro1Billionanditisexpectedtogrowby11-12%perannum.

•  Onlinefoodorderingplatformsde-listed5000Non–FoodSafetyandStandardsAuthorityofIndia(FSSAI)licensed/registeredrestaurantsasperthedecisionofFSSAIonJuly20.Onlineplatformsalsomentiontheywillre-listthemaftertheymeetcompliancerequirementsofFSSAI.

Retail–Online•  E-grocerysegment’spredictedtotalworthisexpectedtobearoundEuro24.5Billionbytheendof2018.Paytmwantstogearupintothe

grocery sectorwith thebackingofAlibabawhich investedEuro175million inBigBasket. IfPaytmcan tieupwithBigBasket, there isachance to cross fertilise their respective user bases to enhance the combined business. Flipkart also allocates Euro 350million fromWalmartonlyforane-grocerysegment.Amazonisplanningtointroduceitfoodrangeontheplatformbyendofthisyear.

•  Myntra is lookingforwardtoexpandinggloballywiththehelpofWalmart.Myntrahasstartedtosell itsprivate label,AllAboutYou,atWalmart stores inCanada.Myntrahas14private labelbrands,with25%of its revenuesderiving from in-housebrands. Itexpects thisvertical togrowexponentiallywith30%CAGRover thenext5years.Walmart,which isalsotryingto increaserevenuefrom itsprivatelabelupto10%ofoverallturnoverfromthecurrent6%,willbelookingatsynergieswithFlipkarttohelpitachievethisgoal.

VPCSectorsThemonththatwas…

1/2

Value Prism Consulting

October Newsletter

WorldTea&CoffeeExpoMumbaiVenue:NehruCentre,Worli,MumbaiDate:29November–1December2018SparkleInternationalVenue:offSachinMagdallaHighway,Sarsana,SuratDate:14–16November2018IndiaInternationalTradeFairVenue:PragatiMaidan,NewDelhiDate:14–27November2018

•  Flipkartclaimstohavesold3millionsmartphonesinitsfirstdayofBigBillionDays(BBD)sale,whichstartedonOctober10th.Salesinthe

first36hoursofthisyear’sBBDsurpassedtheentirefive-daysalesoflastyear.Thisyear,PrivateLabelsplayedasignificantroleintheirrespectivecategories,withMarQbrandgaining20%salesinthewashingmachinesegmentand30%inairconditioners.

•  FooddeliveryplatformSwiggyexpandedservicesin16newcities,increasingitsreachfromthe28citiesacrossIndiawhereitalreadyhadapresence.CompetitorFoodpandacounteredbyadding30citiestoitstally,takingitspresenceto50citiesacrossthecountry.

Retail–Offline•  Nature’s Basket plans to increase the number of stores up to 80-90, and expects revenue growth at CAGRof 25% to 2022. They also

mentionedthattheaverageticketsizepercustomerhasincreasedtomorethanEuro17.

•  AsthefestiveseasonstartsinIndia,offlineretailersalsocomeupwithvariousdiscountsandcashbackofferstocompetewiththeonlineretailmarket.Many retailers claimed they are expecting an increase in sales of 20-30% over the previous year. FutureGroup, India’slargestbrickplayer,planstodefineregion-specificstrategiestocaterthemarketinamorelocalisedmanner.FutureGrouphasalsotied-upwithcardpaymentgatewayRuPaytogiveanadditional10%discountatitsretailformatsBigBazaar,FoodBazaarandFashionatBigBazaar(FBB).

•  Spencer’s isplanning toexpand itsgrocery retail chain. Inorder todoso, it is in talkswithAlibabaandAmazonwhichhaveexpressedinterestintakingastakeintotheCompany.Spencer’scurrentlyhas138storesand10moreareexpectedtobeaddedbyMarch,2019.

•  BigBasketacquiresMorningCartandRainCantoexpandintoMicro-deliveryandOmnichannelcommerce.BigBasketistryingtointroducesubscription-based service for daily productswith the help ofMorning Cart andRainCan in eightmajormetro cities in the next threemonths. BigBasket also acquired a controlling stake into kwik24 which operates cloud-connected automatic vending machine so theconsumercanplaceanorderfromthecompany’sInstantappandcollecttheorderedproductsfromthenearestvendingmachine.Forthissystem,BigBasketislookingforappropriatelocations.Currently,thecompanyhasinstalled100machinesat50locationsinBengaluru.

•  Licious,amarketplaceforfreshpremiumseafoodandmeatproducts,isintalksforSeriesCfundingfromagroupofinternationalinvestorsspearheadedbytheGermanGroupBertelsmann.

•  IkeabrokegroundforitsthirdstoreinBangalore,settoopenbythesummerof2020.

•  Lookingtorampusitsphysicalretailpresence,BangalorebornfurniturebrandUrbanLadderwillbeadding7newstorestoitscountof8,bytheendofMarch,2019.

HORECA

•  Dunkin’ Donuts is entering into the café segment by reformulating its existingmenu and ensuringmore focus on this prodct for newopenings.ThiswillhelpfillacrucialgapinJubilantfoodwork'sportfoliointhedomesticmarket.Domesticcoffeechainmarketisexpectedto grow by 11-12% per annum. Café coffee day is the leading player in this market with 1,742 outlets, followed by McCafe(156),Starbucks(128),CostaCoffee(40)whichwasacquiredbyCoca-Cola.Dunkin’Donutscurrentlyoperates37storesinthecountry.

•  CaféCoffeeDay,India’sleadingcaféchainbystorecount,isplanningtorampupitsnetworkto2,500storesinthenext7-8years,fromthecurrent1,740storesthatitalreadyhasacrossthecountry.

•  SingaporebasedbakeryBreadTalkhasopeneditsfirststoreinthecountryinDelhi’sSelectCitywalkMall.

•  AnItalianfrozendessertcompany,thenameisnotyetrevealed,isinadvancedtalkstopickupa40%stakeinaKolkatabasedice-creammaker.TheItalianentitywillbringtechnicalexpertisetotheentity,apartfromfinancialmuscle

VPCSectorsUpcomingEvents

2/2

Value Prism Consulting

October Newsletter