Hyderabad based Edible Oil Co., Gemini Edibles & Fats files for

Hyderabad based Edible Oil Co., Gemini Edibles & Fats files for Rs. 2500 cr IPO

Gemini Edibles & Fats India Limited, owners of the “Freedom brand” and market leaders in the sunflower oil category across Telangana, Andhra Pradesh and Odisha has filed for a Rs 2500 cr IPO with the market regulator.

The Issue is a complete Offer for Sale by the Selling Shareholders and the company will not receive any funds from the net proceeds of its initial public offering

GEFIL, commenced its business in 2010 and as of today stands to be one of the fastest growing edible oils and fats companies in India. The company is engaged in the business of manufacturing, distribution and branding of edible oils and specialty fats in India and holds the third largest market share in the state of Karnataka. It operates across the edible oil and fats value chain i.e from importing crude edible oil to processing, packaging and distribution of its products that are sold under three verticals i.e branded retail consumer- sunflower oil, rice bran oil, mustard oil, palm kernel oil, palmolein oil; industrial consumer – high stability frying oils, palm oils, cocoa butter substitutes, inter-esterified vegetable fats and bulk merchandising – palmolein, sunflower and soyabean oils.

Between FY19 to FY21, it’s revenue from operations has grown at a CAGR of 19.6% and gross profit margin has almost doubled.

Besides tapping into multiple offline and online channels for retail sales, the Company intends to expand presence across Tamil Nadu, Kerala and foray into the northern and eastern states of India such as Chhattisgarh, Jharkhand, Uttar Pradesh and West Bengal over a span of 5 years.

As of June 30, 2021, the company had a network of over 30 depots, 1100 distributors and wholesalers which had a retail reach to approximately 640 towns in the state of Telangana, Andhra Pradesh, Odisha and Karnataka.

Freedom, the brand owned by GEFIL was ranked amongst the top 5 cooking oil brands in india according to India Today “Ipsos Urban Consumer Sentiment Survey 2020. According to the Technopak report and Nielsen Retail Index, stated in the DRHP, the regional player is also amongst the top two companies by market share in the branded sunflower oil category pan-india in FY21.

 Additionally, it’s promoter, Golden Agri Resources Ltd, has been listed on the Singapore Exchange since 1999, it is one of the leading integrated palm oil plantation companies in the world that focuses on sustainable palm oil production.

 The packaged edible oil segment is forecasted to grow at a CAGR of 7% for the period from Fiscal 2020 to Fiscal 2025. The Indian specialty fats and oils segment which caters to industries such as bakeries, biscuit, confectionery and snack foods is estimated to be growing at a CAGR of 8% per annum.

Investment Bankers appointed to the issue are Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities(India) Private Limited.

Cold chain logistics expected to grow by

Key Highlights:

• 1.5 lakh to 2 lakh pallet capacity is expected to be added as part of temperature-controlled storage space in next two-to-three year
• Apart from Tier-I cities, Tier-II cities including Lucknow - Kanpur, Ranchi, Patna, Bhubaneswar Goa, Aurangabad, Ahmedabad, Kochi, and Coimbatore are expected to reshape the segment
• The expansion is primarily driven by capturing higher market share by organised cold chain operators, changing consumer behavior for quality products, and securing supply reliability in a pandemic like situation
• Government initiatives including Scheme for Cold Chain & Value Addition Infrastructure, Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Backward & Forward Linkages have encouraged more investments in the segment of the cold chain
• Rising demand from the market and the adoption of cost-cutting technological advancements have caused profit margins in the cold chains logistics industry to expand over the past five years
  
  

Cold chain logistics expected to grow by over 20%
CAGR by 2025: JLL

 

• Cold chain is one of the key components in the logistics sector, having untapped opportunities for organised developers
• 1.5 lakh to 2 lakh pallet capacity is expected to be added as part of temperature-controlled storage space in next two-to-three year
• Apart from Tier-I cities, Tier-II cities including Lucknow - Kanpur, Ranchi, Patna, Bhubaneswar Goa, Aurangabad, Ahmedabad, Kochi, and Coimbatore are expected to reshape the segment

 

The national cold chain sector is expected to grow at over 20% CAGR by 2025, according to JLL, due to its transformation from conventional cold storage to modern storage space. The estimates are based on the sector’s performance over the past few months, where despite the post-Covid economic impediments, the organised cold chain segment has seen significant growth in country-wide footprint. According to JLL, there is an opportunity for organised cold storage / palettized cold storage in Tier-I cities like Mumbai, Delhi NCR, Bangalore Chennai, Pune, Kolkata, Hyderabad as well as Tier-II cities like Lucknow, Kanpur, Ranchi. Patna, Bhubaneswar, Goa, Aurangabad, Ahmedabad, Kochi, and Coimbatore.  An additional 1.5 lakh to 2 lakh pallet capacity (frozen and chilled) may be added as part of temperature-controlled storage space in the next two to three years.

 

Cold chain refers to the transportation and warehousing of temperature-sensitive products from the point of origin to the point of consumption, which increases shelf life and prevents spoilage. About 60% of cold storage capacity is concentrated in the states of West Bengal, Uttar Pradesh, and Bihar, out of which storage of potatoes accounts for 85-90% of the capacity. Cold storage in India contributes 43.7% of the total revenue from the cold chain industry and only 36% have a capacity below 1,000 MT.

 

“Automation in the logistics sector will only become more pronounced in the coming years and we see innovation in the multimodal and cold supply chain as catalysts for new segments of demand. Both from the equity and lending community, the appetite for the yield in the industrial sector is likely to further drive the investor demand for cold chain facilities,” said Yogesh Shevade, Head – Industrial Services, JLL, India. “The rationale behind the expansion is primarily driven by capturing higher market share by organised cold chain operators, changing consumer behavior for quality products, and securing supply reliability in a pandemic like situation,” he added.

 

While production of perishables has increased consistently in the past five years, cold chain sector potential remains untapped due to the high share of single commodity storage and soaring investment for land and refrigerator units. Additionally, the lack of necessary enabling infrastructure, inadequate awareness for handling perishable goods, and lapses in service by storage and transportation providers leading to inferior quality goods, have impacted demand.

 

In current times, for transporting and storing temperature-sensitive products refrigerated storage has become an integral part of the supply chain. Proximity to population centres, population growth, changing consumer preferences and consumer spending are the primary drivers for cold chains.

 

Growth in organised retail: Organised retail and foodservice industries have emerged as new cold chain segments, majorly due to changing consumption patterns. Increasingly, consumers demand a large variety of fresh fruits and vegetables, dairy products, meat, and poultry products, and other temperature-sensitive commodities have led to rising in cold chain infrastructure.

 

Growth in the food processing industry: Since, the Indian food processing industry is critical, the government vigorously focusing on its development. This has resulted in boosting of cold chain infrastructure, which will, in turn, reduce wastage in the supply chain.

 

Pharmaceutical sector: Cold chain forms the storage backbone of the pharmaceutical industry, which is highly susceptible to temperature and time requirements. It is a known fact that India caters to over 50% of global demand for various vaccines, 40% of generic drugs demand in the USA, and 25% of all medicines in the UK, and the sector is expected to rapidly grow by 2025.

 

Government support: Initiatives including Scheme for Cold Chain & Value Addition Infrastructure, Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Backward & Forward Linkages have encouraged more investments in the segment of the cold chain.

 

Increased profitability has encouraged new operators to enter the market. Global and domestic investors that are new to the cold chains but versed in supply chain asset investments are beginning to show interest in the sector. Rising demand from the market and the adoption of cost-cutting technological advancements have caused profit margins in the cold chains logistics industry to expand over the past five years.

Women Borrowers form 28% of India’s Retail Credit

 Women Borrowers form 28% of India’s Retail Credit Consumer Base, show TransUnion CIBIL Insights

Financial Inclusion of women on the rise with 47 million active women borrowers, increasing by a compound annual growth rate (CAGR) of ~21% over the last six years

Chennai, March 8, 2021: Latest insights from TransUnion CIBIL indicate sustained growth in the participation of women borrowers in India’s retail credit market, which now includes more than 47 million active women borrowers. Over the last six years, the share of women borrowers grew to ~28% in Sep-20, up from ~23% in Sep-14, indicating increasing inclusion of women in India’s credit market. This represents a CAGR of ~21%. Male borrowers have increased at a CAGR of ~16% during the same period. In terms of sanctioned loan amount, women borrowers account for INR 15.1 lakh crores of retail loans, which has also grown at 12% CAGR over the last six years. 

Improved access to economic opportunities have catalyzed financial inclusion of women

Speaking on these findings, the Chief Operating Officer of TransUnion CIBIL, Ms. Harshala Chandorkar, said: “Increased participation of women in the labour force, coupled with progressive government initiatives and policies on improving access to economic opportunities for women, has driven the growth of women borrowers in India’s retail credit market. Factors like lower stamp duty for women consumers on home purchase in some states along with lenders offering better terms and conditions and lower rate of interest for women borrowers, have further catalyzed this growth. Also the fact that women have a higher average CIBIL score than that of men indicates that women have a better credit history and therefore lesser probability of default which makes them better customers for banks and credit institutions. Improved and easier access to economic opportunities has catalyzed financial inclusion of women in India”

Insights on credit availed by women consumers show that ~45 million new loan accounts were opened by women borrowers during the 12-month period of Oct-19 to Sept-20, marking a 17% CAGR growth over the last six years (i.e. compared to credit availed in period of Oct-13 to Sep-14). The number of new loan accounts opened by male borrowers has increased at 16% CAGR during the same period. At the end of Q3 2020, there were more than 47 million active women borrowers (with at least 1 live loan and/or credit card account). (Refer table 1.1)

1.1 – Share of women borrowers in India’s retail credit market*
Year*	No. of women borrowers (in millions)	Share of women borrowers (%)
2014	14.9	23%
2015	19.8	25%
2016	24.0	25%
2017	29.8	26%
2018	36.2	27%
2019	42.8	27%
2020	47.5	28%

*Based on a 12-month period of data at the end of CY Q3 of each year

 

Personal loans and consumer-durable loans in top demand for women borrowers

Insights on credit demand show that more than 29 million women applied for credit opportunities in CY 2020 (Jan-20 to Dec-20) indicating an increase of ~26% CAGR growth in the credit demand by women borrowers over the last six years. Further insights based on product type show that there is a marked preference in demand for personal loans and consumer-durable loans by women borrowers, with ~38% of enquiries by women coming for these two loan products over  CY 2020(Jan-20 to Dec-20). Important to note is that data from earlier years (2014, 2015 and 2016) shows that home loans were highest in demand for women consumers. (Refer Table 1.2)

1.2 – Product-wise demand for credit by women borrowers in India Enquiries for loan types by women consumers (%)
Loan Type	2014	2015	2016	2017	2018	2019	2020
Personal Loan	12%	14%	13%	14%	17%	23%	19%
Consumer Durable Loan	8%	10%	12%	17%	19%	19%	19%
Home Loan	19%	18%	16%	15%	13%	9%	11%
Credit Card	11%	11%	12%	13%	12%	13%	12%
Others	49%	47%	46%	42%	40%	35%	39%

*Based on 12 month period of data for CY (Jan-Dec) of each year

“This marked shift in the type of credit women are seeking reflects the evolution in India’s credit market which now provides quick and easy access to multiple types of credit opportunities, across both secured and unsecured products. Data-driven lending and credit information solutions support for lending processes and policies have enabled lending institutions to quickly and confidently assess a consumer’s credit history and risk potential in order to make astute credit decisions. This capability has fueled the surge in credit growth, as credit institutions are now able to find and fund good consumers while controlling their portfolio risk,” explains Harshala.

Rising credit consciousness amongst women borrowers – a promising indicator of financial literacy

Along with the growth in the participation of women in India’s credit market, awareness and credit consciousness has also improved with self-monitoring** women consumers growing by 71% between 2018 and 2020. This is more than six times the growth rate of self-monitoring male consumers over the same period.

“With improved levels of education and employment of women across our country, their credit consciousness has also grown. This is corroborated by the fact that we have seen a significant surge in the number of women borrowers who monitor their own CIBIL score and report. This is a promising indicator of increased awareness and financial literacy amongst women,” said Sujata Ahlawat, Vice President and Head – DTC Interactive, TransUnion CIBIL.

This increased credit consciousness is also evident from the fact that women now constitute 12% of self-monitoring consumers, an increase from 10% in 2018. State-level data analysis indicates that the highest number of self-monitoring women consumers are from Maharashtra (18%) followed by Tamil Nadu (11%) and Karnataka (10%). (Refer Table-1.3)

 

1.3 – Top 5 states for self-monitoring women credit consumers, as of 31 December 2020
State	Self-monitoring women credit consumers (%) –
Maharashtra	18%
Tamil Nadu	11%
Karnataka	10%
Telangana	7%
Uttar Pradesh	7%
Delhi	7%

 

Credit consciousness fosters credit discipline and improves access to economic opportunities

Insights from CY 2020 show that within three months of checking their CIBIL score and report, 22% of self-monitoring women consumers opened at-least one loan account or credit card. Women consumers also show better credit history as compared to men, with the average CIBIL Score of an Indian woman consumer being 719 – higher than that of an average male consumer at 709. Additionally, 61% of the women consumers in TransUnion CIBIL’s consumer credit bureau have a CIBIL score greater than 720, whereas only 56% of male consumers have a CIBIL score greater than or equal to 720.

“Increased credit consciousness leads to a positive credit behavior as consumers understand the impact of their credit activity on their CIBIL score and access to finance. With many credit institutions now offering better terms and conditions and lower rates of interest for borrowers who have a higher CIBIL score, it is advantageous for consumers to monitor and maintain a healthy credit profile. TransUnion CIBIL is committed to ensuring that each consumer is reliably and safely represented in the marketplace so that they are able to access economic opportunities easily,” concludes Sujata.

>> Learn more about the CIBIL Score at www.cibil.com

Bank of Baroda launches Digital Lending Platform aimed at

Bank of Baroda launches Digital Lending Platform aimed at
Paperless Process for Retail Customers

 

Bank of Baroda, country’s third largest public sector bank, has launched the Digital Lending Platform, which enables prospective retail loan seekers to get loans digitally through a paperless process at the convenience of their place and time of choice.

 

Pre-approved Micro Personal Loan is offered to existing selected customers to shop anything through offline / online partner channels and pay later in easy EMIs. Customers can also avail the amount into their Savings bank account and convert it to EMIs from 3 to 18 months through m-Connect+ (Bank’s mobile banking app) in 60 seconds.

Shri. Vikramaditya Singh Khichi, Executive Director, said, “The primary objective is to provide exceptional customer experience, personalized customer journeys and scale the lending business through digitization. Bank has attempted to digitize itself internally by building a high-performing, innovative environment, which has allowed bank to reduce time-to-market for their products. Bank envisages outpacing the banking industry growth by 1.50 times at CAGR of 16% over next 5 years by adopting digital first lending approach across retail, MSME and agriculture segments.”

Further, the Digital Lending Platform provides ‘In Principle approval’ for Home Loans, Car loan and Personal Loans in 30 minutes without human intervention. The digital loan process is done from the various sources of the loan applicant’s financial profile and the applicant will get ‘In Principle approval’ in 4 simple steps. The prospective applicants can avail the facility through multiple channels - website, mobile banking, internet banking and social media as well.

 

The Bank will offer ‘Online Loan against Fixed Deposits’ through Digital Lending Platform, which enables the Fixed Deposit customers to avail loan against their Online FD instantly through mobile banking and net banking facility.

 

With launch of Digital lending Platform, Bank believes that personal loan disbursements will be completely digitized first followed by MSME and Agriculture disbursements. As such Bank envisages that the digital share of disbursement in retail lending will grow to 74% over 5 years.

 

Dr. Ramjass Yadav, Chief General Manager, Bank of Baroda said, “We endeavour to accelerate our digital journey and continue to invest and innovate to transform Bank into a completely digitised organisation. Digital lending platform will help the Bank to double the non-corporate book by 2025.”

 

Shri. Akhil Handa, Head- Fintech, Mobility and Digital Lending Dept. Bank of Baroda said, “Our aim is to reposition existing operating models with a ‘Digital First’ model and to achieve this, we will rapidly launch new products to serve our increasingly digital customer base.”

New age Robots will be an inevitable part of

 New age Robots will be an inevitable part of Industry 4.0: IEEE

IEEE, the world’s largest technical professional organization dedicated to advancing technology for humanity, today concluded its virtual roundtable focused on how immersive technologies like Robotics & AI will be the driving force in India. With the post-pandemic scenario dawning upon us, IEEE curated a roundtable to discuss how these cutting-edge technologies are crucial for businesses, associations and societies to establish a strong foundation in these rapidly changing environments.

 

During the roundtable, Senior IEEE Member and CEO, ASIMOV Robotics Pvt. Ltd, Jayakrishnan T said “Robotics will play a pivotal role in Industry 4.0 revolution. The new world order has not only expedited the development of health-tech, but also has influenced technology solutions across sectors.”

 

During the last decade, the evolution of robotic capabilities was exponential. According to the International Robotic Federation (IRF) report, India has moved up one position to now feature among the top 10 countries with the most annual installations of robots in industries.

 

Adding to this Jayakrishnan said “With the accelerated pace of automation adoption, robotics will transform the world by the introduction of digital work force in combining the major game changers - Computer simulation, AR VR, Rapid prototyping, Collaborative robots, Big data analysis, AI, IOT, High speed internet and Cloud computing.”

 
The roundtable also highlighted how AI is opening new fronts in Healthcare and is fueling predictive and prescriptive analytics to help increase efficiencies across sectors. A recent IDC study revealed that India's AI spending will grow at 30.8% CAGR to nearly ₹6,490.6 cr in 2023.

 

Commenting on the same, Sukanya Mandal, Senior IEEE Member said, “Among other immersive technologies, AI & ML play critical role in helping businesses have an all-inclusive view of data, providing them a way to make connections. It’s not a matter of eliminating human intelligence and insight. In fact, in order to augment intelligence for businesses, the amalgamation of human intuition and machine intelligence is of utmost importance. Going forward, we will witness companies spending exponentially in intelligent solutions to drive and ensure business continuity, cutting across verticals.”

As the pandemic has influenced the direction of latest trends in all technology applications, it has become mandatory to maintain the new world order in every aspect of development. The COVID-19 outbreak has taught the world a number of lessons, one of the important one is to use technological innovation in its full potential. The IEEE members underlined the need to invest in new digital infrastructure, vital projects and innovate for a better tomorrow.