Indian Economy: News and Discussion

Haldilal

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was about to mention this, but was written in the article itself.
apparently fogg has displaced axe (HUL product) as market leader in body spray. must be happening in other product categories as well.

and what are the chances woke ads are diminishing HUL's sales?
Ya'll Nibbiars currently the HUL is rudderless, want to tell many things but don't this public thread would be appropriate. Just say more string now getting filled in the field of the diversity in a the Subsidaries.
 

another_armchair

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was about to mention this, but was written in the article itself.
apparently fogg has displaced axe (HUL product) as market leader in body spray. must be happening in other product categories as well.

and what are the chances woke ads are diminishing HUL's sales?
Don't know if woke ads did it but Fogg replaced Axe purely in terms of value for money.

Majority of Indian consumers are value conscious and Fogg addressed that concern very well.

Read an article some weeks ago detailing how Fogg displaced Axe as India's #1 body spray brand. Will post it here if I can find it.
 

Azaad

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Don't know if woke ads did it but Fogg replaced Axe purely in terms of value for money.

Majority of Indian consumers are value conscious and Fogg addressed that concern very well.

Read an article some weeks ago detailing how Fogg displaced Axe as India's #1 body spray brand. Will post it here if I can find it.
 

hurrians

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Local and regional firms have reached up to 31% more households in segments such as biscuit, soap, washing powder and detergent in the September quarter.


Lot of innovation/new products in food category too .

 

another_armchair

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Anybody knows what happened to Campa Cola after that big fan fare relaunch by Reliance?

Didn't find a single campa cola bottle at Reliance Fresh the last few times I visited the store.
 

ezsasa

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8-10-15 years ago when such analysis used to come, the obvious correlation from a observers perspective used to be that demand must have been low in the economy, now a days it's not a direct correlation, especially when other indicators don't match such a direct correlation.

glad that those days are behind us, for now.
 

hurrians

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Local and regional firms have reached up to 31% more households in segments such as biscuit, soap, washing powder and detergent in the September quarter.


Lot of innovation/new products in food category too .

To any casual observer visiting nearby supermarkets over the past years , these trends wud hav been clear. Even established Desi bigwig companies are facing the heat.

Ofcourse some consolidatiin may happen in the future.

Anyway,as always,good to again ask (the oft repeated question) how much outflow happens from mnc as royalty payment, profit transfer.



deal to pay its UK parent higher royalty fees took the shine off a bigger-than-expected rise in quarterly profit

 

another_armchair

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8-10-15 years ago when such analysis used to come, the obvious correlation from a observers perspective used to be that demand must have been low in the economy, now a days it's not a direct correlation, especially when other indicators don't match such a direct correlation.

glad that those days are behind us, for now.
We take a lot of things for granted in metros & large capital cities of a state w.r.t brands and seldom look beyond the 2-3 that are available on most mall/store shelves.

Its the smaller cities and towns that throw up local alternatives.

Back in the days in Jamshedpur, most of the electric bulbs supplied to Tata Steel factory were made locally or in neighboring Bengal.

The local manufacturer/supplier had a very simple policy - If a bulb fails in X days, we replace it free plus we are cheaper than the branded ones. Single orders were in the hundreds or thousands.

Big brands found it quite difficult to compete.

Local manufacturers were not very ambitious. They were only looking to run for 3-5 years or less, make enough money and once competition heated up in the segment, sell the business and switch to another product/service.

----------------------------------


Had replied along similar lines.

We sure rural India hasn't switched to cheaper alternatives?

There are tons of local brands available at district and state level which become quite competitive when branded FMCG products become too expensive or the buyer gets too little for the same price(less volume as was confessed by top FMCG brands).
Aside, there are much larger packs available in urban stores these days which offer greater value for money and helps the company offload more volume at one go. I reckon more family consumers opt for volume which is leading to stock piling up in urban store shelves.

Are companies trying to balance volumes in urban areas because demand is slack in rural India for whatever reasons cited?

1701969755917.png
1701969778948.png


Most families sized 4+ would go with option one as it offers more vfm and a 2L pack will outlast a 900ml pack and if usage remains as earlier, its replacement will be deferred till the diswash liquid lasts.

Same applies to larger biscuit packs, snacks, detergent packs etc by large brands.

As far as media reports of stock piling up on urban shop shelves goes, we don't know for sure if consumers have hoarded more than they normally consume over a month or they are really hard pressed for money and simply buying less.

Yes, inflation pressures are there.. cost of living is high, but in the absence of reliable data, it would be a little too early to make a sweeping generalization that demand is falling off a cliff.
 

Azaad

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We take a lot of things for granted in metros & large capital cities of a state w.r.t brands and seldom look beyond the 2-3 that are available on most mall/store shelves.

Its the smaller cities and towns that throw up local alternatives.

Back in the days in Jamshedpur, most of the electric bulbs supplied to Tata Steel factory were made locally or in neighboring Bengal.

The local manufacturer/supplier had a very simple policy - If a bulb fails in X days, we replace it free plus we are cheaper than the branded ones. Single orders were in the hundreds or thousands.

Big brands found it quite difficult to compete.

Local manufacturers were not very ambitious. They were only looking to run for 3-5 years or less, make enough money and once competition heated up in the segment, sell the business and switch to another product/service.

----------------------------------


Had replied along similar lines.



Aside, there are much larger packs available in urban stores these days which offer greater value for money and helps the company offload more volume at one go. I reckon more family consumers opt for volume which is leading to stock piling up in urban store shelves.

Are companies trying to balance volumes in urban areas because demand is slack in rural India for whatever reasons cited?

View attachment 231766 View attachment 231767

Most families sized 4+ would go with option one as it offers more vfm and a 2L pack will outlast a 900ml pack and if usage remains as earlier, its replacement will be deferred till the diswash liquid lasts.

Same applies to larger biscuit packs, snacks, detergent packs etc by large brands.

As far as media reports of stock piling up on urban shop shelves goes, we don't know for sure if consumers have hoarded more than they normally consume over a month or they are really hard pressed for money and simply buying less.

Yes, inflation pressures are there.. cost of living is high, but in the absence of reliable data, it would be a little too early to make a sweeping generalization that demand is falling off a cliff.
Just to add context from my own experience. 1 kg Surf for a front loaded Washing Machine costed ~ INR 210/- in 2015-16 . It's INR 320/- today where I live including a discount. The 2 kg & 5 kg pack come cheaper than a 1 kg pack in respective multiples with proportional discounting meaning a 5kg pack will be cheaper than 5x1 kg packs or 2x2 + 1x1 kg packs .

If the prices have gone up a third in less than a decade , why wouldn't any consumer opt for a cheaper alternative which may not be as effective as Surf but does the job . Isn't that how Nirma gave MNCs a run for their money in the 80s & 90s ?

One way of ascertaining demand would be to check for all the brands sold in a given market for the 1 kg front loading detergent this FY & compare it to the previous 2-3 FYs else we're running blind . HUL may have been considered a weathercock 2-3 decades ago on whose results consumption could be determined , not any more.
 

another_armchair

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Just to add context from my own experience. 1 kg Surf for a front loaded Washing Machine costed ~ INR 210/- in 2015-16 . It's INR 320/- today where I live including a discount. The 2 kg & 5 kg pack come cheaper than a 1 kg pack in respective multiples with proportional discounting meaning a 5kg pack will be cheaper than 5x1 kg packs or 2x2 + 1x1 kg packs .

If the prices have gone up a third in less than a decade , why wouldn't any consumer opt for a cheaper alternative which may not be as effective as Surf but does the job . Isn't that how Nirma gave MNCs a run for their money in the 80s & 90s ?

One way of ascertaining demand would be to check for all the brands sold in a given market for the 1 kg front loading detergent this FY & compare it to the previous 2-3 FYs else we're running blind . HUL may have been considered a weathercock 2-3 decades ago on whose results consumption could be determined , not any more.

Head to DMart. It gives stiff competition to the local CSD these days.
 

ezsasa

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States receive 100% of State GST (SGST) collected in that state, approximately 50% of IGST collected in the state, and a portion of CGST is also devolved to the states based on the Finance Commission's recommendations.

Industrialised states like Tamil Nadu have several companies with pan-India operations and concurrent tax payments.

For example, Tamil Nadu is one of the leading automobile manufacturing states in the country. Manufacturers make a profit because these automobiles are sold across the country. Similarly, plantations from Kerala make profits by selling across India.

This explains why the location of direct tax collection may not be a fair and equitable principle for the sharing of tax because although the money comes from everywhere across India, tax is paid in the state where the companies are registered.

So, if automobile companies selling across India are registered in Sriperumbudur in Tamil Nadu and they pay their taxes from there, it's not just Tamil Nadu's tax money that is there.

 

thebakofbakchod

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States receive 100% of State GST (SGST) collected in that state, approximately 50% of IGST collected in the state, and a portion of CGST is also devolved to the states based on the Finance Commission's recommendations.

Industrialised states like Tamil Nadu have several companies with pan-India operations and concurrent tax payments.

For example, Tamil Nadu is one of the leading automobile manufacturing states in the country. Manufacturers make a profit because these automobiles are sold across the country. Similarly, plantations from Kerala make profits by selling across India.

This explains why the location of direct tax collection may not be a fair and equitable principle for the sharing of tax because although the money comes from everywhere across India, tax is paid in the state where the companies are registered.

So, if automobile companies selling across India are registered in Sriperumbudur in Tamil Nadu and they pay their taxes from there, it's not just Tamil Nadu's tax money that is there.

tell that to dravidian dumeels spreading 24/7 propaganda about muh tax money. Instead all states should bat for municipalities to retain a certain portion of tax generated
 

thebakofbakchod

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Sources in the state government confirmed that a plot of land (SM-52) measuring 1.6 lakh square metre has been allotted to the company to establish the plant in Sanand Industrial Estate-II. 3000 crore investment


--

Global soft drink major Coca Cola on Thursday announced a Rs 1,387 crore investment for a new manufacturing facility in Maharashtra's Ratnagiri district. The facility spread over 88-acre in the Lote Parshuram Industrial area in a Maharashtra Industrial Development Corporation area will utilise water from the Vashishthi river, a statement from Hindustan Coca-Cola Beverages said.
 

thebakofbakchod

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According to a Bloomberg report, the proposed factory is expected to be located in Hosur, a city in Tamil Nadu. The plan is to have the facility operational within 12 to 18 months, with about 20 assembly lines and a workforce of 50,000 within two years. The upcoming plant is expected to be mid-sized compared to other iPhone factories worldwide. It could be one of the largest in India but it will still be significantly smaller than the biggest of iPhone manufacturing facilities in China. For some context, the Wistron factory acquired by Tata employs over 10,000 people, reportedly the new iPhone factory in Hosur could employ as many as 50,000 workers. However, the biggest Foxconn facilities in China have hundreds of thousands of workers.

Another big scoop by TN electronic ecosystem.
 

fooLIam

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States receive 100% of State GST (SGST) collected in that state, approximately 50% of IGST collected in the state, and a portion of CGST is also devolved to the states based on the Finance Commission's recommendations.

Industrialised states like Tamil Nadu have several companies with pan-India operations and concurrent tax payments.

For example, Tamil Nadu is one of the leading automobile manufacturing states in the country. Manufacturers make a profit because these automobiles are sold across the country. Similarly, plantations from Kerala make profits by selling across India.

This explains why the location of direct tax collection may not be a fair and equitable principle for the sharing of tax because although the money comes from everywhere across India, tax is paid in the state where the companies are registered.

So, if automobile companies selling across India are registered in Sriperumbudur in Tamil Nadu and they pay their taxes from there, it's not just Tamil Nadu's tax money that is there.

This is kind of slippery slope. What stops other states specially bhimaru ones to follow industrialisation path like Tamil Nadu or even better like east Asia.
 

ezsasa

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This is kind of slippery slope. What stops other states specially bhimaru ones to follow industrialisation path like Tamil Nadu or even better like east Asia.
-regions punished by brits because of persistent rebellions.
-population density,
-low base of what we now call HDI ,
-bad governance by state govts in the past since 47,
-distance from ports,

some of the factors
 

ezsasa

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Instead all states should bat for municipalities to retain a certain portion of tax generated
for now there are no perfect answers on local govt financing, hopefully by 2047 this thing will be sorted nationwide.
 

Haldilal

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Ya'll Nibbiars The Coca Cola to invest 3,000 crore rupees to set up manufacturing unit at Sanand in Gujarat.
 

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