Views on RBI Policy: Mr. Dhiraj Relli, MD & CEO, HDFC Securities

Mr. Dhiraj Relli, MD & CEO, HDFC Securities

“The RBI MPC left the repo rates unchanged at its meet on June 08 in line with street expectations. MPC members were in a sweet spot in the backdrop of higher than expected GDP numbers and moderating headline and core inflation print. 

The MPC continued with the ‘withdrawal of accommodation’ stance (with 5:1 majority), as liquidity has turned into significant surplus mode further increased by the impact of withdrawal of Rs 2000 notes. A sustained moderation in inflation going forward may prompt the shift from “withdrawal of accommodation” to “neutral” stance. 

India’s economic activity has continued to demonstrate resilience. RBI retained its GDP forecast at 6.5% in FY24. 

Given the uncertainties around the impact of El-Nino conditions leading to sub-par monsoon in 2023, RBI remained cautious and revised the inflation projection by only 10bps to 5.1% for FY24. RBI Governor stressed on moving towards the primary target of 4% inflation. In this backdrop, expectation of rate cut in this calendar year seems to be faded. We expect the first rate cut perhaps in Feb 2024.”

Simpl partners with McDonald’s India

Simpl partners with McDonald’s India to enable a seamless 1-tap checkout experience for millions of its customers online

This partnership assumes significance with an increasing number of customers ordering online

Mumbai, 08 June 2023- Simpl, India’s foremost 1-tap checkout network, today announced a partnership with McDonald’s India (West & South), to bring a seamless online checkout experience to millions of customers. Simpl’s integration with the McDelivery App as part of the association will play a key role in providing a smooth online checkout experience.

Customers using the McDelivery platforms (app and website) will be able to use Simpl’s 1-tap pay to effortlessly place their orders. As of March 2023, McDonald’s India has 357 restaurants in 56 cities across West and South India, serving millions of registered customers across the regions. The company is on a fast track to add 40-45 new restaurants in FY24 and 580-630 new restaurants by 2027.

Commenting on the partnership, Nitya Sharma, Founder, and CEO at Simpl said, “As an organisation committed to providing customers with a frictionless checkout experience online, we are increasingly partnering with small, medium, and large enterprise merchants to offer millions of their customers our state-of-the-art 1-tap payment experience. This assumes significance as the Checkout network plays a crucial role in onboarding new customers and increasing customers’ engagement with the platform. In this endeavour to empower merchants, we are excited to partner with McDonald’s India to offer a unique and seamless experience to their customers as they strengthen demand on their own platforms”.

Arvind R.P., Chief Marketing Officer, McDonald’s India, said, “At McDonald’s India, we are committed to offering our customers the best experience across touchpoints. By integrating Simpl’s technology into our McDelivery platform, we are enabling millions of customers to enjoy the 1-tap checkout experience and their favorite McDonald’s meals in no time. As we continue to expand and innovate, we are excited to work with Simpl who share our commitment for innovation and customer satisfaction.”

McDonald’s App and McDelivery App have over 24 million downloads collectively and millions of registered customers across the two regions.

With an increasing number of customers ordering online, offering a unique experience that helps the platform build a relationship with the customer and create brand loyalty is imperative. Integrating Simpl with McDonald’s India will offer millions of customers an elevated level of seamless online experience. Currently, over 26,000 merchants across the country use Simpl’s 1-tap pay to increase conversions and build trust with new customers.

Forever New India Surpasses 200 Crore+ Revenue Milestone in Under a Year

Delhi, 8 June 2023: Forever New is an illustrious fashion empire hailing from the vibrant city of Melbourne, Australia. Since its inception in the twilight of 2006, this extraordinary brand has rapidly ascended to become one of the most revered and fastest-growing Australian marvels. With a presence in over 250 stores across seven countries, Forever New has garnered a reputation for its celebration of feminine beauty and distinctive style that permeates every aspect of its creations. Forever New India, the epitome of style and elegance, is delighted to announce a remarkable milestone in its journey. In less than a year, the brand has achieved a staggering revenue of over Rs. 200 crores, establishing itself as the fastest-growing high-premium fashion brand in the country.

As part of its ambitious expansion plans, Forever New India has embarked on a rapid expansion strategy with a keen focus on tier 2 and 3 cities. This impressive achievement is a testament to the brand’s commitment to delivering exquisite dresses that embody timeless beauty and unparalleled style.

Forever New India is renowned for its impeccable craftsmanship, timeless collection, and signature prints that stand out in a crowded marketplace. Each piece is meticulously designed to reflect the brand’s dedication to excellence. With 38 exclusive business outlets, over 40+ concession stores, and the iconic Pooja Hegde as the brand ambassador, Forever New India has established an impressive brand presence and enhanced accessibility for its valued customers. The brand’s commitment to reaching its audience is further reflected in its availability in all leading malls across the country. Customers can also conveniently explore and delve into the world of Forever New India through its user-friendly website and online presence in major online marketplaces, which contribute to a significant 28-30% of the brand’s overall business.

In an exciting development, Forever New India is poised to make an indelible mark in the handbag category. By expanding its presence in this segment, the brand is strengthening its foothold as a comprehensive fashion destination, catering to the diverse needs and desires of its esteemed customers. The brand envisions a promising future in the footwear market, further enriching its product portfolio and indulging fashion enthusiasts from head to toe.

Speaking about this extraordinary achievement, Mr. Dhruv, Country Head of Forever New India, expressed his delight, stating, “Forever New has achieved a stupendous growth of 90% over 2019. The company achieved sales of Rs. 200 crores for the financial year and very impressive growth in profitability, in spite of being challenged by the pandemic that impacted fashion brands’ consumption severely across the world and in India. This growth trajectory was led by the outstanding in-trend and yet classic fashion quotient of Forever New styles and their impeccable quality built on a very sound platform of sustainability since 2020-21. The teams at Forever New were pioneers in the deployment of personalized communication to their ‘Allure’ loyalty program members and strategically rolled out many consumer-centric initiatives such as ‘virtual shopping’ and ‘home shopping’ during the pandemic and continue to provide that service. Forever New also strengthened its E-Commerce business and was again at the forefront as a partner with Myntra to start Omni channel sales in 2020. The brand appointed superstar actress Pooja Hegde as its new Brand Ambassador which elevated the overall brand reach and its presence. Coupled with their star power and the massive ‘A Hundred Influencer’ Program, the brand was able to catapult to extraordinary success in just two short years after the end of the disruption caused by the pandemic in 2021. During this period, it has been adjudged as a ‘Great Place To Work’ and also the ‘Top 10 Companies in India to Work at For Women’ for the year 2022-23. Sixty per cent of the employees at Forever New are women – Dhruv Bogra, Country Director -India and Southeast Asia”

Forever New India, driven by an unyielding devotion to offer a realm of unmatched style and transcend the boundaries of the fashion landscape, has emerged triumphant in its meteoric rise and garnered a loyal customer base across the country.

Reaction on RBI Policy from Andromeda and Square Yards

Mr. V Swaminathan, executive chairman, Andromeda sales and Apnapaisa.com

The RBI’s decision to maintain the policy rates unchanged is positive news for borrowers, especially considering the global apprehensions that persist in advanced economies. However, the Reserve Bank of India remains focused on preserving price and financial stability while ensuring adequate flow of financial resources to all productive sectors of the economy.

It is encouraging to note that domestic macroeconomic fundamentals are strengthening, with resilient economic activities, moderated inflation, comfortable current account deficit, and robust credit growth.

If the situation persists or improves further, we can anticipate a potential rate cut in the next monetary policy review.

Piyush Bothra, Co-founder and CFO, Square Yards

The Reserve Bank of India’s decision to maintain the status quo for the second time is a welcome move and in line with the expectations. This affirms the view that interest rates will only have one direction which is downwards. This is a big positive for the home buyer as they know that their EMIs down the line will only decrease further. A lot of fence sitters are expected to jump in, and the developers are likely to cash in on this pent-up demand. We firmly believe that we are at the beginning of a multi-year real estate bull market buoyed by high disposable incomes, high affordability and moderate-to-low interest rates.

Mmaximize steals the spotlight – Masoom Minawala and Schbang launch a talent management vertical

Schbang has launched a joint venture with global influencer and entrepreneur Masoom Minawala called Mmaximize. It brings the personal and professional experience of Minawala with Schbang’s strategy, industry know-how and business acumen.

A content creator herself, Masoom Minawala has been the recipient of Forbes Asia’s 30 under 30 list, and has represented India at many global platforms She is collaborating with Schbang, the digital and technology transformation company associated with key Indian and international brands like Amazon, TATA Neu, H&M, Johnson & Johnson, Fevicol, Mattel and Jio. The eight-year-old company has over 1200 employees and has been awarded LinkedIn’s top startups in India in 2018, 2021, and 2022. Schbang has also won the Social Media Agency of the Year by ET Brand Equity and has been awarded as India’s Fastest Growing digital agencies 2023 by Agency Reporter.

As per the Influencer marketing report, the Indian influencer marketing industry’s value will reach Rs. 2,200 crores by 2025, growing at an annual rate of 25% over the next five years. Creators are doing more with their platform, like conducting workshops, bagging big-budget productions, and venturing into entrepreneurship, among many other things.

Mmaximize aims to provide a 360-degree multifaceted approach for creators to build their personal brands. The services will include PR & Image building, identifying revenue streams, legal and financial support, invoicing and billing, negotiating brand deals, building brand strategy and monthly and quarterly content planning.

Mmaximize’s vision is to build an unassailable business model for India’s top creators that fuses their creative prowess with Mmaximize’s strategy, analytical thinking, industry know-how and business acumen to foster the creation of personal brands and realize their full potential.

On the collaboration, Masoom Minawala – Global Influencer, Entrepreneur and Investor said, “The business of influencing has been a passion from the day I started creating content —the art of strategy, brand building, client servicing, cultivating relationships with brands to create multiple streams of revenue, all of it. While I’ve been fortunate to establish a solid framework for myself, there has always been a burning desire to extend this expertise to others in the industry.”

“That’s how Schbang MMaximize was born—an amalgamation of my 12 years of experience & expertise and Schbang’s digital reign, infrastructure, & access to over 300 brands” she continued.

Harshil Karia, Founder, Schbang said, “For Schbang, this is an important strategic move. It brings us closer to creators and helps us leverage our efficient service standards, and access to tech companies and clients to be able to deliver a market-beating service for Talent in India and beyond. It will also help the large client pool in Schbang give the first opportunity to co-create IPs with many exciting creators and celebrities.

I could not think of anyone better than Masoom to partner with on this joint venture.” he continued.

Max Life extends claims support for Odisha train accident victims

New Delhi, 7th June 2023: Max Life Insurance Company Ltd. (“Max Life” / “Company”), stands in solidarity with the people impacted in the Odisha train accident and has extended swift claims support to them and their families. The Company has established a dedicated claims support desk and appointed a nodal officer to simplify and expedite the claims payments.

To ensure quick claim settlement, some basic requirements are:

Any evidence from Government/Designated District officials of the State Government or Hospital Authorities/Municipal Record showing death due to the Train Accident.
Claim Intimation Form/Claimant Statement (with Bank Details)
Photo ID Proof of Nominee/Beneficiary

The victims’ families can reach the Company’s representatives by calling 0124-4219090 (extn: 9699) or (+91) 7428989574. They can also email their claims with the following documents at – claims.support@maxlifeinsurance.com, or directly to the Nodal Officer – Meenakshi.gupta1@maxlifeinsurance.com.

Additionally, claimants can also connect with Mr. Chitta Mohanty from the Bhubaneswar branch for further details.

Name: Mr. Chitta Mohanty

Branch Address: Plot D, 1st Floor (Above Reliance Fresh), Hotel Crystal Complex, Baramunda, H B Colony, Dist. Khurda, Bhubaneshwar – 751003, Orissa

Email ID: chitta.mohanty@maxlifeinsurance.com

Mob No: +91-8941990412

Saudi Arabia Ministry of Industry and Mineral Resources Releases March 2023 Monthly Bulletin to Provide Insights into The Kingdom’s Industrial and Mining Sectors

Riyadh, Saudi Arabia – The Ministry of Industry and Mineral Resources of Saudi Arabia has released its latest March 2023 Monthly Bulletin of Industry and Mining, aimed at providing key insights into the Kingdom’s industrial and mining sectors. The bulletin is published monthly and covers the latest developments, trends, and investments in these sectors, proving a vital tool for investors.

The bulletin issued by National Industrial and Mining Information Center indicated that during the period from January to March 2023, 332 new industrial licenses were issued with investments amounting to 8.2 billion riyals, while 300 factories started production with investments exceeding 7.9 billion riyals, enabling the sector to create 28,332 job opportunities, 54% being for Saudis.

In addition, the total number of factories in the Kingdom at the end of last March reached 10,825, with investments amounting to 1.4 trillion riyals.

As for the mining sector, the bulletin indicated that the total number of mining licenses in force in the sector until the end of March 2023 amounted to 2,314 licenses, including 1,451 building materials quarry licenses, 609 exploration licenses, 180 mining and small mine exploitation licenses, 42 reconnaissance licenses, and 32 surplus mineral ores licenses.

The Monthly Bulletin of Industry and Mining is part of Saudi Arabia’s broader industry and mineral resources strategy. The Kingdom has been actively diversifying its economy and reducing its dependence on oil for revenue. The development of the industrial and mining sectors is a key component of this strategy, and the Ministry of Industry and Mineral Resources has been leading the efforts to achieve this goal.

The Saudi Arabian government has been encouraging investment in the industrial and mining sectors by offering various incentives, including tax exemptions, land grants, and streamlined licensing processes. The data presented in the bulletin highlights the success of these efforts, and the growth of Saudi Arabia’s industrial and mining sectors is expected to benefit the country’s overall economy.

The Monthly Bulletin of Industry and Mining is published by the Ministry of Industry and Mineral Resources and is available on the ministry’s website: https://mim.gov.sa/newsletters

Lobb Logistics Unveils Comprehensive Price Index History and Forecast

Bengaluru – June 7, 2023 – Lobb Logistics, a leading logistics company, is thrilled to announce the integration of its groundbreaking Price Index History and Forecast tool. This innovative solution provides the app users with a comprehensive view of historical price data and accurate forecasts to help them make informed decisions in an ever-changing logistics landscape.

The Price Index History and Forecast leverages advanced machine learning algorithms and powerful data analytics to deliver a robust and reliable analysis of price trends across various markets and sectors. By examining vast quantities of historical data, the tool offers valuable insights into past price fluctuations, enabling users to identify patterns, understand market dynamics, and formulate effective strategies.

Key features of the Price Index History and Forecast tool include:

Extensive Historical Data: The tool compiles and organizes an extensive repository of historical price data spanning season & years. Users can access and analyse this wealth of information to gain a deep understanding of price movements over a period of time.

Accurate Forecasts: Lobb’s state-of-the-art forecasting models utilize cutting-edge techniques to generate accurate predictions of future price trends. These forecasts provide invaluable guidance for businesses, transporters, and users to make informed decisions and mitigate risks.

Sector-Specific Insights: The tool allows users to explore price data and forecasts specific to their industry or sector of interest. This tailored approach helps users gain a granular understanding of price dynamics within their respective domains.

User-Friendly Interface: Lobb has designed an intuitive and user-friendly interface that enables easy navigation and data visualization. Users can effortlessly explore historical price trends and forecasts, making it accessible to both experts and novices alike.

“We are excited to introduce the Price Index History and Forecast tool, which empowers individuals and organizations with comprehensive price information,” said Venu Kondur, CEO of Lobb Logistics. “By leveraging our advanced AI capabilities, users can gain valuable insights into past price patterns and make better decisions for their businesses and investments.”

Lobb’s Price Index History and Forecast tool is available as a web-based platform/application accessible to users in India. The tool supports a wide range of industries and is invaluable for economists, financial analysts, business leaders, and policymakers seeking reliable and actionable price information.

The Age-defying Investment Power of Ownership Homes

– by Akash Pharande, managing Director – Pharande Spaces

Property prices increase even though buildings age. How come? In the case of most other manufactured products other than gold ornaments, prices decrease as the product ages, don’t they?

Most people prefer to buy new homes rather than used properties because older properties need more maintenance and repair and because new projects have better amenities and facilities. A TV, car or mobile phone rapidly lose value every month because of wear and tear, and newer models are constantly being churned out.

But while older properties do lose resale value to some extent, they retain much of their inherent value no matter how old they get – and, if one waits long enough, eventually become more valuable than before.

Properties in older buildings in one area cost more than properties in another, much newer buildings. How does this happen?

It’s a good question, and every existing or aspiring homebuyer should understand the dynamics involved. To get a grip on it, let’s return to the above example of gold ornaments. There are two primary factors involved:

The inherent value of the basic material: Gold is a precious metal whose value appreciates because of scarcity because there are finite gold reserves on the planet

The manufacturer’s brand: A gold ornament made by a famous jewellery brand is worth more than an ornament with the same amount of gold by an unknown manufacturer. This is because the well-known brand has invested much more in timeless design and quality workmanship. Therefore, it stands the test of time and commands more desirability.

What does this have to do with housing?

The inherent value of the basic material: In rapidly developing or fully-developed urban areas, available land is limited and gets costlier over time. Every apartment owner has a share of the land on which the project is built.

The constantly decreasing supply of land pushes up property prices, even if the buildings themselves are aging. Location plays a huge role because some areas provide a better lifestyle than others.

The manufacturer’s brand: As in the case of jewellery, the brand of a real estate developer matters. Today, most homebuyers prefer to buy properties by reputed developers, and not only because they know that their under-construction homes will be delivered on time. Branded players invest more into both the quality and location of their projects and also in the scope and quality of project maintenance. For this reason, their projects also see much more rental demand.

Don’t aging building depreciate?

Even with the most careful use, gold ornaments get tarnished over time. Decades after they were first made, they will have lost much of their sheen. Nevertheless, the base material – gold – not only retains its value but becomes even more valuable.

Old ornaments can be melted down to make new ones with a brand-new sheen. No value is lost in the process, and the ‘making charges’ are already recouped because gold has already become scarcer.

The cement, steel and other materials used in modern buildings – even those by branded builders – degrade over the decades. However, the basic input – land – appreciates, and every property owner’s share of the project’s land becomes more valuable. In high-quality such as integrated townships and gated communities, the developer has locked in the appreciating power of not only land but location, as well as reserved green open areas and amenity spaces that add further value over and above the base value of every apartment owner’s share of the plot.

Old buildings are demolished after 50-60 years, and new ones with superior amenities are built. At this point, the original property owners are in the driver’s seat, and their new properties are invariably bigger, better and more valuable than the first ones.

Macro factors

– Supply and Demand: The demand for property is influenced by population growth, economic conditions, and the desirability of the location. If the demand for property in a particular area outweighs the available supply, prices will rise, irrespective of the age of the buildings.

– Inflation: Property prices are influenced by overall inflation, which erodes currency’s purchasing power and causes products with in-built value to appreciate over time. Here again, gold and real estate share very similar attributes.

Final thoughts

All of the above revolves around monetary value, but an owned property is valuable in many other respects. You pay no rent on it, and it gives you a lifetime of safety and convenience – or income if it is rented out. Moreover, there is ‘social value’ to consider.

Property owners and tenants hardly share the same social status, nor do tenants have as many legal rights than owners when it comes to using the property. And finally, tenants have no share in the value of the property they occupy.

Interestingly, the age-old ‘buy or rent’ debate was finally put to rest during the Covid-19 pandemic – ‘buy’ has emerged as the way to go. Why did it take a global health cataclysm to cause even life-long renters to come to the market as property buyers? There are plenty of theories, but all the reasons are a combination of human psychology and fiscal prudence.

We like to own what we use, and we like to see our investments grow. And housing prices zooming anywhere between 5-15% in just the last two years, the investment sense behind owning residential real estate is far beyond dispute.