Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Last week the Sensex fell 721 points, and the Nifty ended at 24,000, dragged down by IT, pharma, and banking stocks. However, ONGC was a bright spot, rising over 5%.

TOP STORIES

Rural India Steals the Show in Consumer Spending

What happened

Rural India is on a consumption spree, and it’s outpacing the cities! In fact, rural demand for FMCG products grew 6%, while urban areas limped behind at just 2.8%. Companies like Dabur India have already felt the shift, with rural growth outpacing urban sales for four quarters straight! 

Rural consumers aren’t just sticking to dal and roti anymore; they’re upgrading their shopping baskets with noodles, chocolates, and even those fancy shampoos we city folks love to flaunt. 

• Also, rural consumption spending shot up 9.2%, narrowing the gap with urban areas where it rose by 8.3%.

Why it matters

It’s official—rural India is no longer the underdog in the consumer race. With rising incomes, government schemes, and better infrastructure, villages are giving cities a run for their money. The government’s direct benefit transfers and infrastructure push are filling pockets in places that once only bought chappals and ghee. And here’s the kicker—rural poverty has fallen to just 4.86% from a whopping 25.7% in 2011-12!

The bigger picture

Rural areas are now emerging as a consumer market of equal importance to urban centres, if not more. With FMCG companies experiencing growth in these regions and the rural-urban consumption gap continuing to shrink, businesses are shifting their strategies to tap into this emerging market. 

As this transformation continues, rural India could soon be the new urban for consumer business, making it a hotspot for marketers and businesses.

PAISON KA KHEL

Minimalist’s stunning glow-up with HUL

Hindustan Unilever (HUL) is in talks to acquire skincare startup Minimalist for ₹3,000 crore—a massive jump from its ₹600 crore valuation in 2021. Known for affordable skincare priced between ₹300-₹700, Minimalist saw its FY24 revenue soar to ₹350 crore, an 86% rise. The company also doubled its net profit to ₹10.8 crore, proving it's not just a pretty face.

Founded by Jaipur siblings Mohit and Rahul Yadav, Minimalist has been profitable since FY21. If the deal is sealed, the brand will join HUL’s beauty royalty, rubbing shoulders with Dove, Lakme, and Sunsilk. 

HDFC Bank takes the biggest hit, Reliance rides high

Last week, four of India's top-10 firms saw their market valuations take a nosedive, losing a combined ₹96,605 crore. HDFC Bank led the fall, with a ₹37,025 crore loss, bringing its valuation to ₹13,37,919 crore. ICICI Bank and TCS also took hits, losing ₹29,324 crore and ₹24,856 crore, respectively.

But not all was doom and gloom. Reliance Industries gained a whopping ₹41,138.41 crore, pushing its valuation to ₹16,93,373 crore. Other winners included Hindustan Unilever, LIC, and Infosys, with gains of ₹15,331 crore, ₹13,282 crore, and ₹9,031 crore, respectively.

TOP STORIES

Zepto Comes back to India!

What Happened

Zepto, the quick-commerce giant, has made a bold move—shifting its headquarters from Singapore to India! The approval has already been granted, and the company is all set to get a formal green light on January 17, 2025, when the National Company Law Tribunal (NCLT) reviews its “reverse merger” application. This move comes as Zepto prepares for its much-anticipated IPO in India. 

Zepto isn’t just sitting around, though.

• It’s been busy securing $350 million in funding, bringing its total capital to $1 billion. 

Look at the numbers!

Zepto’s move to shift its headquarters back to India is all about capitalising on the country's booming stock market. With fierce competition from Blinkit and Swiggy Instamart, Zepto is preparing for a major leap. 

• And it's working – the company's revenues surged by 120% in just one year, jumping from ₹2,026 crore in FY23 to ₹4,455 crore in FY24. 

With more customers ditching the old-school kiranas for lightning-fast 10-minute deliveries, Zepto’s clearly making its mark, proving that in India, speed and success is going hand in hand!

Zoom out

The company is also shifting its business model, moving to a marketplace approach, which could change the way we shop for good.

A "marketplace approach" is like running a digital mall where the platform connects buyers and sellers. Instead of directly selling products, businesses list their items, and the platform takes care of the transactions, from payments to delivery.

GLOBAL NAZARA

NYC's congestion pricing is finally here

After years of delays, New York City's congestion pricing has officially begun. Starting Sunday, drivers entering parts of Manhattan will pay $9 during peak hours. This plan aims to bring in $15 billion for the Metropolitan Transportation Authority (MTA), which will use the funds to upgrade the city’s subway and rail lines. Inspired by models from London and Singapore, this move hopes to reduce NYC’s notorious traffic.

However, not everyone is happy. New Jersey tried to block the plan, calling it unfair, and even President-elect Trump criticised it. Despite the opposition, the tolls are rolling in. 

Foxconn’s revenue hits a record $64.72 billion

Foxconn, the tech giant behind your shiny iPhone and Nvidia-powered gadgets, has smashed revenue expectations for Q4 2024, hitting a jaw-dropping $64.72 billion. That’s a 15.2% leap, driven by soaring demand for AI servers. While iPhones kept things steady, the AI frenzy sent revenues through the roof.

Foxconn's smart consumer electronics were flat year-on-year, but its shares soared 76% in 2024, leaving Taiwan’s broader market far behind. 

TOP STORIES

Entertainment Goes Premium, Wallets Go Slim!

What Happened

Jio Star, the shiny new kid on the block after Star India and Viacom18 tied the knot, has decided to up the ante—and the prices. Channel packs are now 18% costlier, with 83 bundles featuring 134 channels. That’s 85 SD, 44 HD, and 5 free-to-air channels to keep you glued to your screens. 

For instance, the Star Value Pack Hindi now costs ₹110, up from ₹93. Rivals like Sony and Zee are also in on the action, raising their bouquet prices by over 10%.

They are not alone

It’s not just Jio Star playing the price-hike game; rivals are also adding a little extra masala to their bouquets. Sony’s Happy India Smart Hindi pack now costs ₹54, up from ₹48, but they’ve thrown in Sony Max 1, because everyone needs more dhishoom-dhishoom? Zee’s rebranded All-in-One Pack Hindi SD is now ₹53 (a ₹6 jump), featuring the English entertainment channel Zee Café for those late-night sitcom binges.

On the money front, broadcasters are raking it in. Jio Star, Sony, Zee, and Sun TV collectively pulled ₹17,842 crore in subscription revenue in FY24—a solid 4.2% bump from the previous year. Clearly, the demand for drama, sports, and entertainment isn’t slowing down, even if it costs viewers a little more. 

Behind the news

With exclusive access to cricketing treasures like the IPL and ICC events, the network is making bold moves to command premium pricing. The new packs cater to all tastes—regional content, sports, and infotainment—though they come at a higher cost for viewers. 

Meanwhile, competitors like Zee and Sony are adjusting their offerings to justify their own price hikes. For consumers, this could mean tighter entertainment budgets, especially if distributors can't negotiate a rollback.  

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