Abu Dhabi Investment Authority to invest $50 billion in India, says Suresh Prabhu

Abu Dhabi Investment Authority to invest $50 billion in India, says Suresh Prabhu

Union minister for commerce and industry Suresh Prabhu on Friday said that the Abu Dhabi Investment Authority, a sovereign wealth fund owned by Emirate of Abu Dhabi, will invest USD 50 billion in India, especially into infrastructure and food processing capacity, according to a Times of India report.

Speaking at the inaugural function of the annual venture capital summit in Panaji, Prabhu announced that the agreement has been signed on Thursday. Abu Dhabi-based sovereign wealth fund is interested in investing in India in a big way, he added.

According to the agency, Prabhu had also asked the International Finance Corporation to help attract other sovereign funds and pension funds to invest into India.

The Commerce Minister said that India is a top investment destination in the world today. Twenty states have their Startup policy. Suresh Prabhu stated that infrastructure is the sector where India is developing at a faster rate and this is creating lots of opportunities for investors.

He further remarked that India is one country where almost every citizen is an entrepreneur and where 600 million farmers and retailers take enormous risks. The fragmented Indian agricultural holdings provides great opportunity for startups to bridge the productivity gap by providing solutions using cutting edge technology like AI and drones.

Suresh Prabhu also declared Goa as the permanent venue for the Annual Global Venture Capital Summit. The Summit will take place in Goa on the first Friday of December every year.

Edited by Chitranjan Kumar

source =.”businesstoday”

SIP investment: Why you need to accept losses

are indeed low

To create wealth from stock markets, one should stay invested.

By Dhruv Desai

It is a good practice to remain invested in a falling market or better still, invest more to ensure great returns when market recovers. Majority of the investors would know this but unfortunately, majority of them fail to stick to this advice.

To create wealth from stock markets, one should stay invested. Likes of Warren Buffet, Rakesh Jhunjhunwala didn’t become rich overnight. They have seen all ups and down in the market and had managed to stay invested. In fact, they managed to invest when the market was at the lowest or at least the stock was trading cheap.

Stay invested
When we buy the stock for long term, we feel we will remain invested or invest more when the market falls. But do we actually do it? Let us take an example : Suppose we start systematic investment plan (SIP) of Rs 1,000 every month in HDFC Equity Fund from January 2007. I am taking this year since the market before that was roaring and that would convince many investors to start their investing in the stock market. From January 2007 to January 2008, the returns would be 29.68% where we would have invested Rs 13,000 and we would be getting a return of Rs 16,859. Then in October 2008, the investment would be worth Rs 13,370 from an investment of Rs 22,000. So we would be looking at a loss of 39.22%.

I doubt if any investors would still continue their SIP. I have seen many investors taking a loss and withdrawing from market stating stock market is not meant for them. In fact, if they had continued for another year, i.e., till December 24, 2009, the return would be Rs 53,533 and amount invested would be Rs 36,000 which would give us the return of 48.70%. In fact, if the investor would have continued the same SIP of Rs 1,000 every month, the return currently would be Rs 3,35,060 from an invested amount of Rs 1,43,000. That would give a return of 134% in a span of 10 years.

Investor’s confidence
Falling market tends to shake off investors’ confidence in the market. This is psychology, where fear prevails common sense. When the market is touching new highs, in spite of a warning from the back of our mind that the market is overbought, greed prevails and we find ourselves over committing in the market.

Investors should remove the notion from their mind that equity market will give high returns no matter what. We have seen where in a span of one year, the return was negative 39.22%. It is a volatile asset class and will remain so. Investors need to accept this. Investors who have seen high returns in past are less likely to be swayed by fear compare to investors who have seen low returns in past.

In rising markets, it is easy to say we will remain invested when the market falls but when it really falls, investors tend to crash out and take a loss rather than seeing it as an opportunity to invest more. They feel that the market will fall further and then they will invest. But it is impossible to time the market or catch low. In fact, even if they are getting cheaper stocks, they will wait more in fear that it will fall more.
My aim in this article is to highlight that one needs to accept losses too when doing their SIP. If your tolerance is low in the falling market, teach yourself to overcome your fears when things get bad. Otherwise, you will miss the opportunity of investing when prices indeed are cheap.


PepsiCo steps up marketing investment on its ‘big brands’


PepsiCo has revealed that it would be increasing its advertising spend behind its “big brands”, such as Pepsi, Gatorade and DEW. This is with expectations of positive impact, said Hugh F. Johnston, vice chairman, CFO and executive VP at PepsiCo.

Johnston added that the brand’s strategy in the beverage business is focused on brand building.

The brand’s strategy in the beverage business is focused on brand building.

He added that it is also focused on innovation and execution in the marketplace. However, “like most advertising campaigns, that will take several quarters to fully realise the impact”, he explained.

“So we expect sequential improvement in each of the quarters, starting with Q1,” Johnston said.

According to Indra K. Nooyi, chairman and CEO of PepsiCo Inc, the company looks to step up investment spending in advertising, marketing, frontline workforce training, digital capability, data analytics and e-commerce. The move comes as its investment in e-commerce across multiple channels, from e-grocery, to direct to consumer, to pure play, helped drive exceptional growth in 2017, Nooyi said. As a result, PepsiCo’s e-commerce business is now approximately US$1 billion in annualised retail sales.

“We are leveraging big data and predictive analytics to sharpen real-time marketing messages, dynamic merchandising and tailored offers. And we’re increasingly collaborating with retail customers to make e-commerce a point of differentiation for PepsiCo,” she added.

The company also has “robust marketing innovation lined up for 2018”. This includes the launch of its Pepsi Generations campaign and the launch of Mountain Dew Ice, featured with Doritos Blaze at the Super Bowl. Other initiatives include the introduction of its new sparking water bubly, and further marketing support and packaging innovation. This comes as LIFEWTR enters its second year from launch.

“Furthermore, as a company, we will double down on new capabilities in areas such as e-commerce, digital and brand marketing to make us even more competitive,” Nooyi said.

Regarding its pricing strategy, PepsiCo expects its pricing to be competitive in the marketplace. However, pricing lower is not part of its strategy to gain market share.


Your Money: Five mistakes to avoid in investment journey

When you deal with your investments, you should be diligent enough in not making the same mistakes again and again. Your hard-earned money should give you the best returns and you should be well cognizant of what to do with this money.

Now let’s see some common mistakes that investors should not make:

Acting without a well-etched plan

It is always important not only to plan your investment but also to work out your plan. This blueprint enables you to have a fair idea of how you are going to proceed with your stocks, bonds, etc.

You have to be clear in your goals and should have a thorough understanding of your goals. When you are saving for retirement, you should have a well-defined objective. By now you would be thinking about the importance of a clear investment strategy. You should identify what type of assets you are going to proceed with for investment and which objective complements your plan. You should be able to understand the nature of your investments. It is good to have a written plan at the outset so that you know how you are faring with your goals.

Not keeping your emotions at bay

Relying only on emotions won’t be of much help. There should be prudence and rationalisation, especially in terms of investments. You may purchase a specific investment because you are tempted to do so. But you should ensure that you carry out comprehensive research before diving into it. We all rely on our gut feelings to a great extent. But unfortunately, this hunch is not impactful several times. Moreover, with regard to emotions, they are somewhat a paradox. They will sometimes lead you in the wrong direction. But investment strategies are not a cakewalk that always complement your gut feelings.

Ignoring your portfolio

Always ensure that you have a firm control of your portfolio. Do not interpret this as having to remain glued to your investments round the clock. However, checking it on a frequent basis would surely go a long way in assessing how you are performing.

Doing what everyone does

Here we have to be clear in one aspect. Each investor’s outcomes are different. For example, you would be deeply impacted by the actions of your friends, colleagues, etc. You can very well consult your friends, family, etc. But you should perform comprehensive research to be sure that it fits your needs.

Impatient for returns

When we are investing, impatience is one of the prominent emotions that cloud our judgement. We should remember that in the case of stocks and shares, these businesses function in a manner different from our expectations. It’s better to build a long-term strategy and follow it.

Moreover, it is not a wise thing to frequently shift your assets so that you get better returns. You have to wait and see how your investments actually perform. Don’t be just carried away by the recent performance of your investment. Assess the whole history and arrive at a well thought-out conclusion.

Startup funding slows in October; RIL commits Rs 3,000 cr investment at ‘Make in Odisha’ conclave

October turned out to be a somewhat dull month in terms of funding raised, closing at just $714.13 million across 51 deals. This was just 50 percent of the funding raised in October 2017 and just over 25 percent of what was raised in September this year. While September saw larger and more late-stage companies raise bigger funding rounds, October saw more M&As, including acqui-hires. YourStory Research recorded 30 exits in the Indian startup ecosystem last month, as compared to 20 in September.

With Make in Odisha, the Odisha government is keen to put the state on the fast track to development. The state’s flagship biennial event was inaugurated by Odisha Chief Minister Naveen Patnaik at Janata Maidan in Bhubaneswar on Monday. Mukesh Ambani, Chairman and Managing Director of Reliance Industries (RIL), announced that the company will invest Rs 3,000 crore in the state over the next three years. Most of this investment is aimed at creating Odisha’s digital infrastructure.

Odisha Chief Minister Naveen Patnaik

Verizon’s media technology division Oath promoted Rose Tsou, Head of Oath APAC, to Head of International for the business, effectively making her the first person to be appointed to this newly created role. In her expanded role, Rose is mandated with driving the strategic direction of markets outside of US and Canada, including India. In a conversation with YourStory, Rose spells out Oath’s growth strategy for the Indian market, how she went on to script Yahoo Asia’s success, and what motivates and drives her every day.

Rose with Jerry Yang, co-founder of Yahoo

Amazon Pay has raised funds from parent Amazon for the second time in a month. This infusion of Rs 220 crore is the ecommerce giant’s fourth fund infusion in Amazon Pay this year. Prior to this, in October, Amazon Pay had raised Rs 590 crore. However, heavy spends on sales and promotions led to an increase of 88 percent in Amazon Pay losses in India, the company’s recent filings with the Registrar of Companies revealed.

Amazon has invested Rs 220 crore into its payments arm

Hasmukh R Patil is on a mission to make tractors – and more importantly their operation – affordable for farmers. A farmer from Mandal near Ahmedabad, Hasmukh started by using scraps and automobile parts bought from different garages and mechanics and assembled and reassembled his tractor multiple times until he got it right. He has now assembled a solar-powered tractor that will help millions of farmers bring down their cost of cultivation, and reduce dependence on expensive fossil fuels.

Hasmukh Patil, Co-founder, Saur In Autosol Energy (extreme left) & Kunjan Patel, co-founder (extreme right)

Artificial intelligence (AI) is unlikely to be a big eliminator of jobs but the technology can create new openings, according to a Gartner survey, which finds that AI eliminates fewer jobs than expected. The survey reveals AI will change the workforce but its impact will not be detrimental to all workers. People will learn how to do less routine work, the report states, adding that they will be trained in new tasks, while old tasks that have become routine will be done by machines.


Indian marketers set to increase investment in ‘outcome-driven media’: Xaxis

The vast majority of digital media marketers across India are planning to increase their investment in the emerging field of ‘outcome-driven media’, found a survey conducted by Outcome media company Xaxis, which is also GroupM’s programmatic media arm.

The research conducted via an online survey in September 2018 on 500 Indian digital media marketers found that 97% of them would invest in ‘outcome-driven media’ to address growing media complexities and better understand the impact of their campaigns on business results.

The research assessed how satisfied marketers around the world were with their existing methods of measuring the success of digital display campaigns, especially in terms of how they deliver against their strategic business and marketing goals. It also asked what the main barriers were in moving to new metrics, and whether they were planning to increase their investment in ‘outcomes-driven media’, which the company defined as ‘planning and optimising campaigns against KPIs — often tailor-made for an advertiser or campaign — that are much more closely aligned to the marketer’s ultimate marketing and business goals’.

The results of the survey suggest that while outcome-driven media looks to be a critical area of increased investment, there is a mixed picture in relation to how marketers view ways of evaluating digital media success.

The majority (80%) of Indian marketers surveyed either strongly or somewhat agreed that evaluating digital media spend had become more difficult over the past five years and almost all respondents (90%) said they were very or somewhat likely to change the primary metric they used to measure campaigns over the next 12-24 months.

The research found that 92% of Indian marketers surveyed agreed that being able to link business objectives to digital media spend ‘positively impacted’ their marketing budget. And the same majority agreed that understanding how media can meet business objectives allowed their organisation to have a measurable advantage over competitors.

When asked what their organisation’s priorities were for media spend in 2019, the top answer (52%) was ‘increased efficiency’, followed by ‘Improving ad viewability levels’ (46%), ‘gaining full transparency of campaign performance’ (42%), and ‘gaining full transparency of campaign performance’ (37%). ‘Effective allocation of resources’ was the 5th-ranked answer with 34% of survey respondents.

The research also highlighted that 92% of Indian marketers want to work with a partner who can help them deliver against marketing and business objectives. In an era of complexity, Indian marketers seek experts who will help them handle massive sets of data and set up systems to measure their results.“This is an exciting time for us right now as the advertising industry in the APAC region continues to grow and advance. Survey results for the APAC market were closely in line with global trends, and indicate a clear need for marketing that can drive real world results that accrue to the bottom line. This approach will empower marketing to solidify its position as a centre for revenue enhancement, which could ultimately change perceptions of its role within the organisation,” said Arshan Saha, President, Xaxis Asia-Pacific.

Bharat Khatri, National Director, Xaxis India, added, “The findings demonstrate that Indian marketers are clearly looking to investing on outcome media as part of their strategy moving into 2019. They are recognising the need to measure themselves as well as have plans in place to reach out effectively to the large Indian market. The research also suggests that India marketers would like to work with partners to better understand the impact of their campaigns on business results. Based on the comparisons with the other regions, we can see that Indian marketers are opening up to recognising the need to change and implement newer strategies which is a positive shift.”


Hyundai India commits Rs 7,000-crore fresh investment in Tamil Nadu

Hyundai India commits Rs 7,000-crore fresh investment in Tamil Nadu

By: FE Bureau | Published: November 13, 2018 1:02 AM

Hyundai Motor India Limited (HMIL) will be making an investment of Rs 7,000 crore at its Chennai plant — for increasing the production capacity by 100,000 units per annum as well making 10 new models between now and 2025, including electric vehicles.

The statement said the company has promised to increase its production capacity by another 100,000 units, including 50,000 through CKD format and another 50,000 through CBU format.

Hyundai Motor India Limited (HMIL) will be making an investment of Rs 7,000 crore at its Chennai plant — for increasing the production capacity by 100,000 units per annum as well making 10 new models between now and 2025, including electric vehicles.
Senior officials of the company, including managing director and CEO YK Koo, BC Datta, vice-president, corporate affairs and N Ramesh, assistant vice-president, finance, met the chief minister Edappadi K Palaniswami at the Secretariat on Monday and informed him of the company’s fresh investment programmes and future plans, said an official statement from the state secretariat.

The statement said the company has promised to increase its production capacity by another 100,000 units, including 50,000 through CKD format and another 50,000 through CBU format. It has sought various incentives as offered by the state government during its earlier expansions.
Hyundai Motor also promised to Palaniswami that it will produce more than 10 models within 2025, including electric vehicles on the CKD format in the first stage and later will start manufacturing electric vehicles in India over the next 3 years.

This fresh Rs 7,000 crore investments is meant for increased production capacity, new models and powertrain altogether. It is expected to sign an MoU with the state government during the forthcoming Global Investors Meet to be held in January.
Quoting BC Datta, vice-president, HMIL, the statement said senior officials met Palaniswami to express the company’s proposed investment plans. The investments include expanding the present installed capacity from 700,000 units per annum to 800,000 units per annum. This include 50,000 units under CBU and another 50,000 units under CKD format to meet the export obligations of a few Asian and Southeast Asian countries.

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