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BUSINESS
HUL Splits to Target Digital Competition boldly

What happened

Hindustan Unilever Ltd (HUL) is set to shake up the beauty and personal care industry by splitting its business into two distinct divisions. Starting from April 1st, HUL will have dedicated segments for Beauty and Wellbeing (B&W) and Personal Care (PC), mirroring the structure of its parent company, Unilever. 

• The Beauty and Personal Care division, a significant contributor to HUL's revenue, accounted for 37% in FY23, generating a whopping Rs 21,831 crore .

•  This move comes at a time when the broader market is witnessing a surge in innovative offerings from new-age brands like Mamaearth, Sugar, and Plum.

Why it matters

CEO Rohit Jawa emphasized that while beauty and personal care continue to be a source of value for HUL, the business models, innovation strategies, and competitive landscapes for B&W and PC are diverging. 

• The split aims to bring more focus to each segment, allowing the company to leverage its robust portfolio effectively. 

• This move aligns with the expectations of substantial growth in India's beauty and personal care market, especially given the under-penetrated nature of the category.

Zoom out

The restructuring of HUL's beauty and personal care business marks a pivotal moment in the company's strategy. 

• Looking ahead, with the overall domestic beauty and personal care market projected to reach $30 billion by 2027, HUL's strategic moves position it to capitalize on the evolving consumer landscape.

• The per capita spending on beauty and personal care in India, currently at $14, presents significant growth opportunities, especially with the increasing prominence of online channels, projected to constitute around 33% of the market by 2027. 

HUL's bold steps indicate a commitment to staying at the forefront of this rapidly evolving industry.

BIG MONEY MOVES

Pepe Jeans eyes Rs 2,000 crore in sales, 100 new stores 

Pepe Jeans London, part of the Spanish fashion giant AWWG, is targeting a sales milestone of Rs 2,000 crore in the Indian market over the next three years. Leading the charge with an anticipated 18-20% Compound Annual Growth Rate (CAGR), the brand aims to bolster its presence by opening more than 100 stores. Prioritizing direct-to-consumer sales, Pepe Jeans aims for 55% of its business through its sales channels. 

Wipro's Innovation Wing Unleashes Rs 250-Crore Startup Spark

Wipro Consumer Care-Ventures, Wipro's consumer division startup investment arm, unveiled its second fund with a Rs 250 crore corpus, targeting consumer startups in India and Southeast Asia. Managing Partner Sumit Keshan emphasized a focus on e-comm-driven companies at Pre-Series A, offering up to 25% minority stake. The fund concentrates on personal care, skin care, home care, wellness, food, fragrances, and BPC categories.

BUSINESS

PM MITRA Parks, BharatTex to Lead the Textile Renaissance

What happened

In a strategic move to position itself as a global textile sourcing and investment hub, the Indian government is set to launch seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks, backed by a whopping ₹70,000 crore investment over the next 5 years.

Rachna Shah, the textile secretary, revealed the ambitious plan, emphasizing the government's focus on attracting foreign direct investment (FDI) through PM MITRA and other innovative schemes.

• The ministry is also eyeing expansion in the lucrative technical textiles sector, aiming to boost exports from the current $2.5 billion to an impressive $10 billion within the next 5 years.

• To amplify its global textile presence, the Textile Ministry is gearing up for Bharat Tex 2024, a mega textile show scheduled for February in New Delhi. 

Why it matters

BharatTex 2024, an industry-led venture supported by the Ministry of Textiles, marks a pivotal moment for India to assert its dominance in the global textile arena. With a massive international turnout expected, featuring 3,500 exhibitors, 3,000 international buyers, and 40,000 business visitors, the event aims to showcase the nation's textile strength to a global audience.

The government's outreach to every state, encouraging them to spotlight their unique products, and engaging foreign embassies underscore the significance of this initiative

Zoom out

India's textile journey is evolving, propelled by strategic initiatives like PM MITRA parks and the grand stage set by BharatTex 2024. As the government aligns its strengths - abundant raw materials, skilled manpower, and technological advancements - with global investment, the nation is poised to emerge as a textile powerhouse. 

BIG PICTURE

🌏️  ALTERRA Climate Fund: UAE's $30 billion pledge for global solutions

United Arab Emirates President Sheikh Mohammed Bin Zayed unveiled the ALTERRA climate fund, committing $30 billion to catalyze global climate solutions. The fund, with a goal of attracting $250 billion in investments by the decade's end, earmarks $25 billion for climate initiatives and $5 billion to stimulate Global South investments. Partnering with BlackRock, Brookfield, and TPG, ALTERRA has already allocated $6.5 billion to dedicated climate funds.

📈  Uber Accelerates: S&P 500 inclusion sparks 5% stock surge

Uber's shares surged by 5% in extended trading following its inclusion in the S&P 500 Index, replacing Sealed Air Corp. The shift, effective December 18, sparked investor interest, as inclusion often prompts fund managers to acquire shares. Uber, which debuted on the NYSE in 2019, has navigated profitability, with Q3 net income of $221 million on $9.29 billion in revenue.

BUSINESS

Tata Power Acquires Rs 1,544 Renewable Energy Project

What happened

Tata Power, the energy maestro announced its successful bid of Rs 1,544 crore to acquire the Bikaner-III Neemrana-II Transmission renewable energy project. This project, akin to winning the jackpot in the energy lottery, is a special purpose vehicle (SPV) conceived by PFC Consulting Limited, a subsidiary of Power Finance Corporation. 

This transmission marvel is not an average power play; it's a Build-Own-Operate-Transfer (BOOT) spectacle set to unlock the gates for 7.7 gigawatts (GW) of renewable energy from the Bikaner Complex in Rajasthan. Imagine it as a power highway stretching 340 kilometers from the Bikaner-III pooling station to the Neemrana II substation.

Why it matters

Tata Power isn't just here for a good time; it's in it for the long haul. With a commitment to maintain the transmission project for 35 electrifying years, they're not just playing the field; they're building an energy dynasty. The clock is ticking, with the project expected to be up and running within 24 months from the SPV transfer date.

But this isn't just a move for Tata; it's a pivotal player in the Ministry of Power's grand plan for 2030. The transmission lines will be crucial in integrating a whopping 500 gigawatts (GW) of renewable energy into the national grid. Talk about lighting up the future!

Zoom out

As Tata Power gears up for this energy odyssey, it's a win for the nation's green energy aspirations. So, here's to Tata Power, turning the wheels of progress, one transmission corridor at a time!

MIRCH MASALA

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