The city-based Mansukhani family , one of he two promoter groups of Onida brand of electronics, has picked up a 30% stake in Wow Express, a six-monthold logistics company that was founded to cater exclusively to the fast growing ecommerce sector. Tamarind Family Private Trust, which s owned by the Mansukhanis, has made a Rs 3.2 crore $500,000) seed investment in Wow Express, valuing the company at about Rs 9 crore.Vijay Mansukhani, one of the co-founders of Mirc Electronics that owns the Onida brand, will join the board of the company which has been promoted by three logistics industry veterans.
Started in January this year, Wow Express has tied up with known names in the ecommerce space like Paytm .com, rediff.com and Fashionandyou.com, in addition to a host of other e-commerce startups. “The plan is to be present in about 12 cities by December this year and in about 50 locations by the end of 2016,“ Sandeep Padoshi, one of the co-founders, said.
Along with Padoshi, the other founders of the company are Jayesh Kamat and Mazhar Faruqi, who among themselves have worked for global logistics majors like DHL, UPS, TNT and Singapore Post.
Chocolate consumption is expected to record the highest percentage growth from emerging middle-income markets including India, indicating the strong positive correlation between GDP per capita and confectionery . India and China have two of the lowest per capita consumption levels globally , so perhaps they offer the greatest long-term growth potential, analysts say .
India is forecast to deliver a compounded annual growth rate (CAGR) of 9% in confectionery over 2014-2019, according to Euromonitor, with chocolate confectionery driving over two-thirds of the absolute growth, in a market dominated by Mondelez (market share of 55%). Cadbury was rechristened Mondelez India after its US-based parent Mondelez International acquired the former globally in 2010.
Reflecting the strong positive correlation between GDP per capita and confectionery consumption, the highest per centage growth over the next five years is expected to come from emerging middle-income markets including India, Mexico, China and Brazil.The global confectionery market generates total retail sales of $200 billion, having recorded a CAGR of 5.3% from 2000 to 2014. The category can be broken down into three main subsegments: chocolate confectionery (56%), sugar confectionery (32%) and gum (12%).
Euromonitor data shows that four of the top five stron gest-growing confectionery categories are chocolate SKUs (stock-keeping units). Consumers in both developed and emerging markets are increasingly turning towards premium chocolate, with tablets, in particular, seeing strong growth, and fine flavour, originspecific cocoa and responsible sourcing all being key drivers.
Over the past five years, the growth in confectionery has been slightly lower at a 4.3% CAGR, held back primarily by a decline in gum in several large developed markets, including the US. Going forward, confectionery may post a 4.6% CAGR over the next five years.
However, affordability may limit the near-term growth potential of premium chocolate in emerging markets, but compound chocolate (which uses vegetable oil instead of cocoa butter) provides less expensive chocolate products in emerging markets for consumers to trade into the category , says an analyst from Société Générale.
Tastes are changing in countries like China with demand from younger consumers moving from chocolatecoated snacks to block chocolate. Chocolate is expected to continue to be the fastestgrowing sub-category of confectionery , accounting for around 60% of the increase in absolute retail sales in 2014-19.
The price mix has played an important role in confectionery growth, accounting for almost two-thirds of retail sales growth in 2000-2014.
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Sebi to auction property to get Pyramid Saimira dues
New Delhi:
PTI
Sebi on Monday said it will e-auction the property held by Pyramid Saimira's former promoter P S Saminathan's wife to recover over Rs 1 crore penalty imposed on him by the market regulator.
The latest move by Sebi comes after Saminathan and his wife Uma Saminathan failed to pay dues, including penalties worth Rs 1.27 crore, to the capital markets regulator within the permitted time limit.
Earlier, Uma Saminathan had promised to pay the entire dues to Sebi and offered a residential flat in Tamil Nadu as security .
In a notice, Securities and Exchange Board of India (Sebi) said “in the absence of any order of postponement or stoppage of sale, the said property shall be sold through eauction between 1030 hours and 1130 hours on August 20, 2015.“
“The sale will be of the rights Uma Saminathan is entitled in respect of the said property which will be sold along with liabilities, if any,“ it added.
However, Sebi said that the sale of property would be stopped if the arrears along with the interest, costs (including the costs of the sale) are paid.
P S Saminathan had been penalised by Sebi for multiple capital market violations, including non-compliance with disclosure norms and for indulging in fraudulent trading activities.
The reserve price of the property is fixed at Rs 1 crore.“The property shall not be sold below the reserve price fixed,“ the market regulator said.
According to Sebi, intending bidders would have to fill up an application online.
NBFCs Offering Big Ticket Credit Builds Up Risk Portfolio Of Vertical
A growing demand for working capital by small businesses, coupled with stable property prices in Tier II and III markets augurs well for the loan against property or LAP business.
Analysts at CRISIL said the LAP business is expected to grow at 22% annually in the next four years and double to Rs 5 lakh crore by 2019. Financiers anticipate traders and other self employed group segments to mortgage their homes and avail loans for business expansion. Currently, non banking finance companies (NBFCs) and home finance companies (HFCs) account for nearly half of the LAP loans (of Rs 2.25 lakh crore). For instance, Religare Finvest has seen its LAP book grow by 46% year-on-year to Rs 10,249 crore at the end of last fiscal as compared to Rs 7,011 crore during 2013-14.
“Traditionally , there is a fetish for real estate investment by the self employed groups. And when it comes to unlocking their assets for business expansion, customers resort to a secured loan by pledging their property ,“ CEO of Religare Finvest, Kavi Arora said. DHFL anticipates LAP to grow by 20% . “The growth is coming in from Tier II and Tier III markets where the self employed are more than salaried.Business community here seeks a high tenor loan facility to expand business and need for working capital,“ CEO of DHFL, Harshil Mehta said. The LAP business stood at 18% of the overall book of DHFL during last fiscal as compared to 16% during the year ago period. Also, from a profitability stand point, LAP is attractive for NBFCs and HFCs as interest rates are at 11.5% as compared to home loans which lingers at around 10%. “This product offers customers easier commercial terms when compared to SME loans and other cash credit limits offerings,“ business head of Indiabulls Housing Finance, Sachin Chaudhary said.
However, risks in this segment are also building up.That's because non banks are offering big ticket loans (upwards of Rs 2 crore) and LTV (loan to value ratios have risen to 65%-even touching 75% in some cases-on incremental loans. “Nearly a third of the LAP portfolio comprises loans with either high LTV or big ticket size, including 5% that carry both the risks.Loans against commercial property are surging, constituting a third of all incremental loans,“ CRISIL said. They estimate a rise to 3.3% by March 2016 higher than 1% seen for home loans,“ CRISIL added.
NBFCs like Religare Finvest reported 30 bps rise (100 bps = 1%) in their gross NPA (or bad loans) to 2.1% in LAP business. “But this is still not a cause for concern as unlike term loans, LAP collections have normally been at gross NPA levels and it gets reflected in profit and loss account,“ Arora said.
