Lenders approve home grown FMCG Patanjali’s INR 4,320 cr bid for Ruchi Soya.

Impacts:

•Patanjali will become a major player in soyabeans oil and other products

•Increase in Patanjali’s long term assets

•Increase in Patanjali’s product portfolio with addition of popular brands like Nutrela, Sunrich, Mahakosh, Ruchi Star and Ruchi Gold.

•Patanjali is now a direct competitor of Adani Wilmar’s, who sells edible oil under the Fortune brand.

It will be great to see whether the already famous products of Ruchi Soya will be marketed as ayurvedic products under Patanjali brand or not.

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Hospitality giants trying to acquire each other core areas.

•Where, home-rental giant Airbnb recently acquired a hotel property.

•On the similar lines, world’s largest hotel operator Marriot International is all set to come up with home-rentals.

IMPACTS:

•It will help Airbnb to diversify its portfolio to expand as they are gearing up to go public.

•Whereas, Marriot International will be able to experiment with one more area after the successful pilot project.

•Though, both the companies are big giants in their core areas but entering into each other areas might hurt there toplines but their target audience is a little different, which make this move a healthy competition for both of them.

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U.S. FMCG Sector

•Top 17 companies (Large) as per the market cap are growing at their worst.

•Next 400 companies (medium) as per their market cap are growing at a rate lower than their historical growth rate.

•Rest of the companies (small) have actually shown drastic growth over the years.

•This decline of growth in large and medium scale companies and growth in small scale companies is led by the failure of their long held business model.

•Small companies are not focusing on mass brands, rather they are considering and delivering the local needs.

•Also, on an average millenials average earnings are less than baby boomers. So, they research and then select.

•When we talk about food and beverages, people are shifting to fresh alternatives. They don’t want to have preservatives and chemicals in their food and beverages. Which these large and medium scale companies are unable to provide.

•Large and medium scale FMCG companies definitely need to bring some changes to their business model and distribution method.

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US asked India to stop importing crude oil from Iran and subsequently denied to extend the timeline for sanction against Iran.

Impact:

* India will have to increase supplies from other countries and it will not be a major problem for India.

* Import price will definitely go up.

* Capital account deficit (CAD) of India will increase.

* Present level of CAD is 2.5% of GDP, which can increase to 3% of GDP.

* Government of India will be a gainer as the tax revenue will increase drastically with higher prices.

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