Business News at 05:30 pm on 4th July, 2024

Let’s begin…The contribution of quick commerce sales to the overall e-commerce sales of fast-moving consumer goods companies has doubled in a year, executives from top firms, including Dabur, Parle Products, ITC and Nestle, have said. The share of q-commerce sales within the e-commerce sales for the FMCG companies now stands at 33-36% against 17-18% a year ago. For Parle Products, the share of q-commerce in their e-commerce sales has breached the 50% mark, said Mayank Shah, vice-president of the company. But the growth has happened over 2-3 years, with consistent sales on the channel. ITC, in its FY24 annual report released last week, said e-commerce and modern trade together accounted for 31% of total sales in FY24 against 17% in FY20.

Moving on, Despite a likely sequential rise in the second quarter of the current financial year, the Centre’s spending pace in the first half of the year could still lag the year-ago level, official sources indicated. This is partly because spending in the new or revamped schemes announced in the interim Budget will take a while to gather pace. Similarly, the disbursement from the Rs 75,000-crore reform-tied loans to states, which account for 58% of the interest-free capital expenditure loans of Rs 1.3 trillion earmarked for FY25, is likely to materialise only in the second half of the fiscal. The Centre’s revenue position has been boosted by the record dividend of Rs 2.11 trillion from the Reserve Bank of India (RBI) against the budget estimate of Rs 80,000-90,000 crore.

Furthermore, A new indicator to measure “extreme poverty” is likely to be developed by NITI Aayog after consultations with several ministries, official sources told FE. The think-tank is expected to form a committee to first fix a threshold income level, which can be used to measure extreme poverty, and then formulate a methodology to measure it on a periodic basis, an official said. “The NITI Aayog may hold a meeting this month with several ministries, where deliberations will take place to measure extreme poverty,” an official said. “This figure will be different from the multidimensional poverty. It will measure poverty on an income-based approach but NITI Aayog has to take the final call,” another official said.

Additionally, India’s food service industry, currently valued at Rs 5.5 trillion, is on track for a decade of remarkable expansion, according to a new report by Swiggy and Bain & Company. The report predicts a growth trajectory of 10-12% annually over the next seven years, which would nearly double the market size to a staggering Rs 9-10 trillion by 2030. This surge encompasses both dining out and delivery, highlighting the growing consumer demand for convenient and flavourful options. Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years”, said Rohit Kapoor, CEO, Food Marketplace, Swiggy.

Next up, Star Health and Allied Insurance Company is aiming at doubling its gross written premium (GWP) to more than ₹30,000 crore in the next three years by expanding into new markets and launching products suitable for different age groups. “In the first 18 years, we achieved ₹15,254 crore in GWP. With our current growth strategy, we are confident of reaching ₹30,000 crore by FY28,” said Anand Roy, MD & CEO of Star Health Insurance. On Wednesday, Star Health launched home health care services to policyholders in 50 cities and towns. Speaking on the sidelines, Roy said most of the GWP growth will come through penetration into rural markets and by growing its market share in urban cities.

Moving on, The National Stock Exchange (NSE) issued an advisory for investors on Wednesday warning about a person named Ajay Kumar Sharma who provides securities market tips for trading and assured returns on investment in stock market. Sharma, operating through mobile number 7878337029 and telegram channel Bharat Trading Yatra, also offers to handle trading accounts of investors by asking them to share their login ID/password. “It may also be noted that the said person/entity is not registered either as a member or authorized person of any registered member of the National Stock Exchange of India Limited ,” the exchange said in an official release. It added, investors are advised not to share their trading credentials such as user id/password with anyone.”

Lastly, let’s see which are the stocks in focus today. These include Marico, Bajaj Finance, Vedanta, Bandhan Bank, Brigade Enterprises among others.On Wednesday, FMCG-major Marico announced that it has collaborated with Kaya Limited, a dermatological solutions provider, which will give Marico exclusive rights to handle sales and marketing of Kaya’s range of 75+ personal care products outside of Kaya’s clinics. Bajaj Finance posted a growth of 10% year-on-year in new loans booked in the quarter ended June 30, 2024, standing at 10.97 million against 9.94 million it booked in the same period a year ago. The company’s deposit book stood at approximately Rs 62,750 crore as of June 30, 2024, as compared to Rs 49,944 crore as of June 30, 2023, registering 26% YoY growth.