Indian banks must brace for interest rate whiplash: BCG
The study notes that the impact of policy rate changes on bank performance is neither immediate nor uniform, and that credit growth is more dependent on borrower sentiment and lender confidence than on rates alone. BCG's report urges banks to abandon linear forecasting and adopt scenario-based planning.
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Economic Times
27 minutes ago
- Economic Times
Nasher Miles to open 20–25 offline stores, eyes quick commerce growth
ETtech Lokesh Daga, CEO, Nasher Miles Direct-to-consumer (D2C) luggage brand Nasher Miles plans to open 20 to 25 exclusive brand outlets (EBOs) across India by the end of this financial year as it looks to expand its offline presence beyond online company currently has five to six launches in the pipeline, including three in Mumbai, two in Hyderabad, and one in Ahmedabad, and is scouting additional locations in tier-I cities. The goal is to scale up to 100 outlets over the next two years, chief executive officer Lokesh Daga told ET in an interaction. 'We are looking for opportunities as they come. The idea is to see whether we can scale to 100 stores over the next two years,' Daga said on the sidelines of the company's offline retail store launch in Mumbai. Quick commerce bets Even as it pushes offline expansion, Nasher Miles continues to scale rapidly through quick commerce platforms like Zepto, Blinkit, and Swiggy Instamart. Despite trolley bags being priced at Rs 2,000–3,000, the company said quick commerce currently contributes about 8% to total sales. It expects this share to rise to 15% by the end of FY25, depending on the expansion of dark stores and fulfilment capacity. 'Quick commerce is a very metro-focused phenomenon, and that is one channel growing at a very fast pace for us. Every month, we've been growing — last month we grew by 10%, and this month we will grow by another 10%. We expect the quick commerce run rate to reach 15% by the end of this financial year,' Daga reduce reliance on China and improve cost efficiencies, Nasher Miles has shifted a significant portion of its manufacturing to India over the past 18 months. While it previously sourced 90% of its products from China, today nearly 75% are made in India. The company claims this shift has helped cut costs by 20–25% and improve gross Miles initially created a sub-brand, Stony Brook by Nasher Miles, to test domestic manufacturing. With supply chains now stabilised, that brand is being phased out, Daga company, which had turned profitable earlier, went into the red in FY24 due to brand-building investments and the cost of testing Indian manufacturing but claims to have returned to profitability in FY25. According to Tracxn, Nasher Miles recorded a net loss of Rs 6.3 crore in FY24. In July 2024, Nasher Miles raised $4 million in a funding round led by the Singularity Early Opportunities Fund, Narendra Rathi of SoftBank Vision Fund, and Sulabh Arya of Goldman Sachs Growth Equity, among others, at a post-money valuation of $30 million, primarily to fund its omnichannel expansion. The company plans to raise additional funds after the festive season. 'We will actively go into the market probably post-season. The festive season is coming, and 50-60% of sales happen during these three to four months. So, we want to focus on execution first,' Daga said. Category diversification Currently, 92–95% of the company's revenue comes from trolley bags. However, it is now doubling down on other categories like backpacks and travel accessories, aiming to push their share to double digits by the end of this fiscal. The D2C luggage segment has seen growing investor interest. Last year, Mokobara raised $12 million in a round led by Peak XV Partners, valuing the company at $80 million post-money. In August 2024, venture capital firm Accel invested $9 million in Uppercase, nearly doubling its valuation to $60 million. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. India's gas dream runs on old pipes. Can a European fix unclog the future? Did Jane Street manipulate Indian market or exploit its shallowness? Newton vs. industry: Inside new norms that want your car to be more fuel-efficient Is gold always the best bet? Think again Do bank stress tests continue to serve their intended purpose? These large- and mid-cap stocks can give more than 24% return in 1 year, according to analysts Suited for the long term, even with headwinds: 8 stocks from healthcare & pharma sectors with upside potential of up to 39% Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 22% in 1 year
United News of India
an hour ago
- United News of India
Youth power, country's greatest capital: PM Modi's message to new appointees
New Delhi, July 12 (UNI) Emphasising the unmatched strengths of "India's demographic and democratic foundations", Prime Minister Narendra Modi today said that youth power is country's greatest capital, and the government is steadfast in its efforts to convert this capital into a catalyst for long-term prosperity. "India, with the world's largest youth population and the largest democracy, holds unique potential to shape the future both domestically and on the global stage. This vast youth power is India's greatest capital, and the government is steadfast in its efforts to convert this capital into a catalyst for long-term prosperity," he said while addressing the Rozgar Mela and distributed more than 51,000 appointment letters to newly appointed youth in various Government departments and organisations via videoconferencing here. Addressing the gathering, he emphasised that today marks the beginning of new responsibilities for these youth in different departments of the Government of India. He congratulated the young individuals on beginning their service in various departments, saying that despite different roles, their common goal is national service, guided by the principle of 'Citizen First.' The Prime Minister also emphasised the "unmatched strengths of India's demographic and democratic foundations." 'Just two days ago, I returned from a visit to five countries. In every nation I visited, the strength of India's youth echoed strongly. The agreements signed during this tour will benefit Indian youth both within the country and abroad,' Modi said. He further said that various agreements signed during this tour on critical sectors such as defence, pharmaceuticals, digital technology, energy and rare earth minerals will create far-reaching benefits. 'These initiatives will not only strengthen India's global economic standing but also generate meaningful opportunities for young Indians in both manufacturing and services,' he said. Addressing the evolving landscape of employment, the Prime Minister highlighted that the nature of jobs is undergoing rapid transformation in the 21st century. Emphasising the importance of innovation, startups and research, he spoke of the growing ecosystem in India that empowers young people to dream big. He shared his personal pride and confidence in the new generation, expressing joy at seeing youth stepping forward with ambition, vision and a strong desire to create something new. Stating that his government is also focusing on creating new employment opportunities in the private sector, he said that the government has approved a new scheme called the "Employment Linked Incentive Scheme". Under this scheme, the government will provide Rs 15,000 to young individuals who get their first job in the private sector, he informed. 'In other words, the government will contribute to the first salary of their first job. For this, the government has allocated a budget of approximately Rs one lakh crore. This scheme is expected to help in the creation of about 3.5 crore new jobs,' Modi added. The Prime Minister stressed on the transformative power of India's manufacturing sector in driving national growth, generating employment and accelerating India's journey towards becoming the world's third-largest economy. The Prime Minister noted that in recent years, there has been significant strengthening of the 'Make in India' initiative. Through the PLI (Production Linked Incentive) scheme alone, more than 1.1 million jobs have been created across the country. 'Today, electronics manufacturing in India is worth nearly Rs 11 lakh crore, marking more than a fivefold increase over the past 11 years. Earlier, there were only two to four units manufacturing mobile phones in the country. Today, India is home to nearly 300 units related to mobile phone manufacturing, employing lakhs of young people,' he stated. The Prime Minister also spoke of India's rise as a global leader in defence manufacturing, with output exceeding Rs 1.25 lakh crore. Modi praised India's emergence as the largest locomotive producer in the world, and the country's strong export performance in locomotives, rail coaches and metro coaches. The automobile sector, he added, has attracted USD 40 billion in FDI in just five years, resulting in new factories, new job opportunities, and record vehicle sales. The Prime Minister underscored the far-reaching impact of India's welfare initiatives, citing a recent International Labour Organisation (ILO) report that confirms that over 90 crore Indian citizens have been covered under government welfare schemes over the past decade. These schemes, he noted, are not limited to welfare benefits alone but have played a crucial role in generating large-scale employment, particularly in rural India. The Prime Minister elaborated on flagship programmes such as the PM Awas Yojana, under which four crore permanent houses have been built and three crore more are under construction. 'The PM Surya Ghar Muft Bijli Yojana, which offers over Rs 75,000 per household for rooftop solar installations, is reducing household electricity bills and creating job opportunities for technicians, engineers, and solar panel manufacturers. Namo Drone Didi has empowered rural women by training them as drone pilots,' Modi added. The Prime Minister pointed that the country is also progressing with its mission to create three crore Lakhpati Didis, and 1.5 crore women have already achieved this milestone. Listing out various schemes like Bank Sakhi, Bima Sakhi, Krishi Sakhi and Pashu Sakhi that have enabled women to find sustainable employment, he mentioned that the PM SVANidhi scheme has extended formal assistance to street vendors and hawkers, bringing millions into mainstream economic activity. The Prime Minister emphasised that it is the impact of these numerous schemes that, in just the past 10 years, 25 crore people have come out of poverty. 'Without employment opportunities, such a transformation would not have been possible. This is why today, major global institutions like the World Bank are praising India. India is now being counted among the top nations in the world with the highest levels of equality,' Modi stated. The Prime Minister described the current phase as a Mahayagya of development, a national mission dedicated to poverty eradication and employment generation and called on the country's youth and new government appointees to take this mission forward with renewed energy and dedication. The Prime Minister also invoked the guiding ethos of 'Nagrik Devo Bhava' of treating every citizen as divine and extended his heartfelt congratulations and best wishes to the new appointees for a bright and meaningful future in public service. UNI AAB ARN SS
India Gazette
an hour ago
- India Gazette
Centre to provide technology to private factories to ramp up rare earth magnet production: Kishan Reddy
Hyderabad (Telangana) [India], July 12 (ANI): The Centre is trying to make available technology in three to four months to different private factories to ramp up rare earth magnets production in India, said Union Minister for Coal and Mines, G Kishan Reddy. 'We used to be 100% dependent on China for permanent magnets of the rare earths. But recently, China has refused to supply. With this view, the Indian government is making efforts for permanent magnet manufacturing,' Kishan Reddy told ANI. 'Our mining ministry's institute in Hyderabad has made efforts and prepared a permanent magnet processing unit with equipment. After three to four months, we will try to manufacture permanent magnets by giving the technology to different private factories. For this, the Indian government has also started some PLI schemes to encourage it. We are paying attention to this subject,' he added. He said that PM Modi has continuously discussed the production of magnets in India. 'Recently, during his (PM Modi) visit to 5 countries, discussions were held with different countries on this subject. The raw material of rare earth is also available in less quantity in India. Importing that raw material, processing it, making permanent magnets for it, which is used from cell phones to space technology, including defence, there is a huge demand for this. The Indian government is working seriously for this. This scheme has also been brought under it,' he said. The central government has earmarked Rs 1,345 crore to incentivise rare earth magnets production in India, aimed at building domestic capacity when there are reports of global short supply. Early this April, China announced a decision to implement export controls on certain rare earth-related items, pushing a supply shortage across the world, including India. India was in touch with the Chinese side, seeking predictability in the supply of rare earth metals -- which had been put under the export controls regime by the Xi administration. China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems. Beyond China, there are only a few alternative suppliers of critical minerals. Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
