03 October 2022, Mumbai:

E-commerce sales jumped 35 per cent during the first week of the festive season sales.

The personal care and electronics segments grew 60 per cent from the same period last year. Of that, smartphones accounted for roughly 45 per cent of the sales during September 22 to 25, 2022, thanks to the expected rollout of 5G services in the country.

Categories like fashion, too, drove sales higher. An increased shopper base coming in from non-metro cities definitely provided a boost, even though their average ticket size is lower than that of metro cities. Tier II and III cities drove a bulk of the sales and were forecast to broadly continue at the same pace. Together, Tier II and Tier III constitute almost 60 per cent of the market.

Meesho, a player dominant in the space, ended its sale with about 33.4 million orders, witnessing a 68 per cent growth year on year. Meesho typically has an average order value of around Rs 300.Flipkart added more than four million first-time customers and saw one billion customer visits during its sale which ran from September 22 to 30.

With online shoppers projected to increase to 300 million, India’s e-commerce spending is expected to grow twofold in gross merchandise value by 2025.

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28 September 2022, Mumbai:

The second production-linked incentive scheme may have relaxed criteria. This is a scheme for the labour-intensive textile and garment sector. It could allow cotton-based players to take advantage of the scheme, and drastically reduce the turnover and investment limits to enable even medium enterprises to set up units under it.

The first PLI scheme was meant only for technical textile and manmade fiber players who were willing to commit large-scale investments of at least Rs 100 crores with an annual turnover of Rs 200 crores. In the new scheme, the minimum investment will likely be as low as Rs 15 crores for companies to qualify for the incentives.

There could be two other investment brackets, Rs 30 crores, and Rs 45 crores. The annual turnovers have to be double the investment limits. However, the maximum incentive may be kept at ten percent as against 15 percent in the earlier PLI.

Even before the pandemic struck, textile and garment exports shrank eight percent in fiscal 2020. The textile and apparel/garment sector (T&C), comprising mainly medium and small units and dominated by cotton-based players, has been seeking the inclusion of cotton players, along with a reduction in high turnover and investment limits, in the PLI scheme, to benefit a wider pool of businesses.

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16 September 2022, Mumbai:

Future Enterprises underwent a consolidated net loss of Rs 2,296 crores in the fourth quarter.

The company’s revenue for the quarter was down by 13 per cent. Expenses rose by 36 per cent. The widening of its losses and drop in revenue are attributed to factors including failure of the deal with Reliance, attrition of employees, and litigations.

The company’s financial condition took a serious downturn due to events such as cancellation of the scheme of amalgamation, huge attrition of employees, financial instability, litigations faced by related party, non-functioning of production units coupled with Covid.

Future Enterprises was part of 19 group companies operating in the retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a deal announced in August 2020. The deal was called off by Reliance in April after it failed to get lenders' support.

Future Enterprises is a Future Group firm. Future Group is the parent of four listed retail entities Future Retail, Future Lifestyle Fashion, Future Consumer and Future Enterprises.

Future Enterprises has acquired a 55 per cent stake in LivQuik Technology.LivQuik Technology operates QuikWallet. This is a mobile wallet that enables customers to pay at retail outlets and restaurants directly from their smart phones.

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10 September 2022, Mumbai:

E-commerce retailers led by Amazon and Flipkart are expected to garner sales this festive season that is more than double the pre-pandemic figure in 2019.

Covid has speeded up the shift to e-commerce, with an increasing number of consumers shopping online at a higher frequency than last year. This year’s numbers are projected to increase by 28 percent from 2021. The festive month starts from the first sales day and lasts roughly till the Diwali week and includes non-sales days in the interim.

However, the festive season’s share of the online retail gross merchandise value (GMV) is dropping, due to the increasing frequency of transactions fuelled by sale events throughout the year. GMV is the total value of merchandise sold over a certain time frame. The spurt in sales is expected to further push the overall online retail GMV up 30 percent from 2021.

This has been driven by accelerated digital adoption and increasing penetration in Tier II cities and beyond. The launch of new e-commerce models such as live and video commerce will further drive the growth of online shoppers, especially in TierII cities and beyond.

Category-wise this festive season, the fashion category is expected to see robust growth driven by an increasing shopper base from Tier II cities. The mobile and electronics category is expected to remain strong during the festive sales driven by better deals and new launches.

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15 September 2022, Mumbai:

As far as exports are concerned, Raymond has been able to onboard new customers. This is mainly on account of the China plus one story playing out in the company’s favor. Additionally, Raymond is adding new lines for exports.

Raymond is seeing strong traction in the real estate segment. The engineering business is also witnessing robust demand. Raymond expects to see both these verticals, real estate, and engineering, account for 25 percent of the total revenues by fiscal year 24. Both these segments are expected to contribute 35 percent to the EBITDA going forward.

So overall Raymond expects 2022 to be a record year in terms of profitability and revenues. And with healthy cash generation from most of its businesses, it is on track to become net debt free in the next three years.

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08 September 2022, Mumbai:

Market regulator SEBI has granted Aditya Birla Fashion and Retail Limited exemption over listing of shares worth Rs 2,195 crores allotted to Caladium Investment, a foreign portfolio investor.

Based on the in-principle approval received from the stock exchanges, the Aditya Birla Group firm had made an application to the stock exchanges who approached SEBI and sought an exemption.

Under rule 19(2) (b) of SCRR, exemptions are granted to listed companies from making public issue for listing of securities different from the existing listed securities.

Earlier, ABFRL had announced to raise up to Rs 2,195 crores from Singapore’s sovereign wealth fund GIC. And GIC will invest Rs 770 crores now towards subscription of equity and warrants, followed by up to Rs 1,425 crores in one or more tranches within 18 months upon exercise of warrants. Post the entire investment, GIC will own a 7.5 per cent equity stake in ABFRL. After the transaction, Aditya Birla Group will hold a 51.9 per cent stake in the firm.

ABFRL under Madura Fashion and Lifestyle business is a repertoire of leading apparel brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England while its international brand portfolio includes The Collective, India's largest multi-brand retailer of international brands, Simon Carter and select mono-brands such as Forever 21, American Eagle, Ralph Lauren, Ted Baker and Fred Perry. It also owns fashion retail chain Pantaloons having over 370 stores spread across 180 cities.

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20 September 2022, Mumbai:

Launched in 2021, Goados is an Indian brand focused on creating sustainable apparel using natural indigenous material like khadi.

Goados intends to transform people’s behaviour from purchasing fast fashion to ethical fashion by substituting materials like polyester, nylon, and other synthetic fibers with permeable natural fabrics that last longer and are good for the skin.The pillars of the brand are sustainability and the continuation of India’s traditional arts and crafts.

The major objective is to protect these arts and crafts and to support the craftspeople so they can continue to practice these age-old techniques. The aim is to make sustainability more exciting to consumers with a design-centric approach and by forecasting the latest trends and colours with a strong brand identity.

The next collection will have indigenous silk and dyeing techniques like batik and kantha embroidery. Goados has earlier used hand woven ikkat.

The fashion industry is one of the largest growing industries in the world.The last decade has seen an increase in the number of fast fashion brands, negatively impacting the environment and society. Millennials and gen Zs prefer wearing novel synthetic clothing over traditional hand-woven fabrics, unless it's a festival. Consumers worldwide are forgoing fast fashion for sustainable brands.

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