Indian premium League: Premiumisation picks up pace for large consumer goods companies
More than 70% of the new products launched by India's largest consumer goods maker Hindustan Unilever in last two years were in the premium segment. Around 65% of all new personal care product launches were in the premium segment for ITC Ltd, doubling the contribution of such products to the division's sales in the last four years to 38%. For the largest biscuit maker Parle Products, around 60-65% of new launches were in the premium segment as compared to 40% pre-Covid. Key Points
Economic TimesDemand for premium travel shoots up
Demand for luxury travel experiences in India is on the rise, with an increasing number of affluent travelers opting for premium services despite higher costs. The trend is evident in various sectors, including wellness retreats like Ananda in the Himalayas, which has seen a doubling of Indian guests since the pandemic. Companies are catering to this trend with upscale offerings, such as Thomas Cook's relaunch of premium European packages and Cleartrip's surge in sales of premium air tickets. This shift reflects a growing preference for exclusive and curated travel experiences among Indian travelers. Key Points
Economic TimesGoing premium in personal care helps ITC boost sales
Indian company ITC has shifted its focus to premiumizing its personal care business, doubling its contribution to sales to 38% in the last four years. This has helped ITC break even in the personal care business, which now generates profit consistently quarter on quarter. The company operates in categories like body wash, deodorant, skin care, and floor cleanser, which is the second critical piece of its strategy to grow the non-cigarette fast-moving consumer goods (FMCG) segment. Key Points
Economic TimesExicom Tele-Systems registers bumper listing. Book profit or hold?
The stock was listed at Rs 264 on BSE, a premium of 86 per cent over its issue price of Rs 142 apiece. Similarly, the stock was listed at a premium of 86.62 per cent on the given issue price at Rs 265 on the NSE. Key Points
India TodayUS to hike premium processing fees for H-1B and other visa categories; effective Feb 26
The US Citizenship and Immigration Services (USCIS) has finalized a rule announcing an increase in premium processing fees for specific visa categories, including H-1B applications. Immigration attorneys advise sponsoring employers to consider the new fees in their immigration budget planning. Key Points
Economic Times
premium smartphones with next-generation AI capabilities may cost more, says report
Premium smartphones with next-generation AI capabilities may cost more due to the components required to leverage the use of multi-modal generative AI models. These devices are expected to pack more RAM, sport more powerful processors, and include better screens and cameras. They will also feature neural processing units and the cost of DRAM is increasing. Key Points
Economic TimesHero gets a lift from cool bikes, festive spirits
Hero MotoCorp reported a 51% y-o-y increase in net profit in Q3 and a 21% increase in revenue. The company retailed 1.4 million units during the festive period, its highest ever. It plans to increase production of high-capacity motorcycles and expand its distribution network. Key Points
mint“Are you cheating or following discriminatory/racist policies?”: Indian bureaucrat slams British Airways
An IAS officer, Bhide, criticized British Airways, alleging that she was downgraded from premium economy during check-in under the false claim of overbooking. Bhide raised concerns about the airline's practices on social media, questioning if they were engaged in cheating or discriminatory policies. Key Points
Economic TimesUSCIS announces increased premium processing fees for H-1B and other visa categories, effective Feb 26
The US Citizenship and Immigration Services (USCIS) has finalized a rule announcing an increase in premium processing fees for specific visa categories, including H-1B applications. Immigration attorneys advise sponsoring employers to consider the new fees in their immigration budget planning. Key Points
Economic TimesPubs, bars likely to raise cover charges
Our per head cover charges tomorrow (Sunday) can range from ₹8,000 to ₹20,000 depending on the outlets as we would like to avoid overcrowding and would like a select gathering. We will offer only premium alcohol such as single malts. Advance bookings seem to be better than last year, said Priyank Sukhija, chief executive of First Fiddle Restaurants that operates popular outlets of brands such as Lord of the Drinks, Miso Sexy, Diablo, Tamasha and The Flying Saucer Cafe. Key Points
Economic Times
Thoda achhe wala dikhao: The year Indian shoppers went premium
In 2023, India witnessed a shift in consumer demand, as sales of low-priced goods declined while luxury items surged, marking a notable trend. Companies adapted by targeting affluent consumers to offset reduced sales and declining margins, highlighting a clear split in consumer preferences towards premium products amid market challenges. Key Points
Economic TimesSouth Seas forays into premium single malt
South Seas Distilleries & Breweries has launched its direct-to-consumer premium single malt brand, Crazy Cock, targeting affluent consumers with two distinct variants: Rare and Dhua. Priced at ₹8,900 and ₹12,500, respectively, the brand aims to offer a luxury and distinctive drinking experience. Key Points
mintHero Motocorp’s high-end shift earns it a D-St premium
Hero Motocorp's stock has regained investor interest due to rising premiumisation-led earnings growth and higher two-wheeler volume growth. The company's premium bike segment, including Karzima and Harley-Davidson bikes, has seen a 30% increase in its portfolio. The average selling price per unit was Rs 66,680 in Q2 2024, the highest ever. Key Points
Economic TimesImproving premiumisation to help Hero Moto stay ahead on growth track
Hero Motocorp's stock has regained investor interest due to rising premiumisation-led earnings growth and higher two-wheeler volume growth. The company's premium bike segment, including Karzima and Harley-Davidson bikes, has seen a 30% increase in its portfolio. The average selling price per unit was Rs 66,680 in Q2 2024, the highest ever. Key Points
Economic TimesBMC can’t deny pandemic period rebate to builders while renewing approval, says HC
The Bombay High Court has ruled that the Brihanmumbai Municipal Corporation (BMC) cannot deny a 50% premium rebate for construction projects cleared during the pandemic at the time of renewal of the intimation of disapproval (IOD). The court directed the BMC to issue commencement certificates for eight projects that were held up due to non-payment of the full premium by developers. The court stated that the rebate and the pre-condition of paying stamp duty go hand in hand and cannot be separated. | Mumbai news Key Points
Hindustan Times
Hero Moto plans to ride premium wave
Chief executive officer Niranjan Gupta told ET that growing footprint in the premium two-wheeler segment is a priority for the company. Hero MotoCorp's Splendor and Passion dominate the country's entry-level motorcycles segment.A larger chunk of the about '1,000 crore the company has earmarked for spending annually will be used for designing premium and electric vehicles to strengthen the company's presence in these two categories, Gupta said. Key Points
Economic TimesSpotify raises prices for its premium plans in the US
Spotify Technology (SPOT.N) said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. Key Points
ReutersThere Is a Long-Term Danger Lurking in Financial Markets
The premium investors demand for holding longer-maturity assets remains very low. Markets could be in for a wallop if it returns to historical averages. Key Points
mintRise in local bond yields pushes up forward premia
On Monday, the one-year annualised dollar-rupee forward premium rate was at 1.86% as against 1.76% a week ago. A year ago, the premium was at 4.22%. The sharp narrowing of the forward premium rates is owing to the higher quantum of rate hikes carried out by the US Federal Reserve vis-a-vis the tightening conducted by the RBI. Key Points
Economic TimesCentre proposes to keep vehicle insurance premium unchanged for most categories
Sops which have been continued include a discounted price of 50% of the premium based on the Indian Motor Tariff to a private car registered as vintage car. Another discount of 7.5% on the premium shall be allowed for Hybrid Electric Vehicle. A 15% discount has been provided for Educational institution buses, and for Electric vehicles over comparable fossil fuel run ones. Key Points
Economic Times
Muted start to fiscal for life insurers as April premium slides 30%
Life insurers reported that first year premium declined 30% to ₹12,565.31 crore in April, a month usually lean from a new business perspective coming as it does after a hectic March when many customers make a last-minute dash to benefit from the accompanying tax break. Key Points
The HinduFalling premiums at LIC drag life insurers' income down by 30%
The life insurance industry reported a 30% decline in premium income in April on a year-on-year basis, mainly due to the decrease in premium income by the state-owned Life Insurance Corporation of India (LIC). The private sector life insurance industry, on the other hand, reported an 8.55% increase in total new premium income. Key Points
Economic TimesLearn With ETMarkets: What are the components of options premium
The option premium pricing for ITM, ATM, and OTM is based on intrinsic and extrinsic values. Extrinsic value is determined by the Black Scholes model and the difference between the current market price and the strike price. ATM options have the highest extrinsic value while OTM options have the lowest. For ITM options, the premium is higher as the difference between CMP and strike price increases. Intrinsic values are added to ITM options. The premium for each option is determined by adding intrinsic and extrinsic values. Other factors affecting premium prices will be discussed in the next lesson. Key Points
Economic TimesWith more launches, TVS Motor looking to strengthen footprint in premium motorcycle segment
Vimal Sumbly, Head Business (Premium), at TVS Motor Company, told ET, the rise in tourism post Covid has spurred demand for premium motorcycles with consumers looking to explore new places with friends, family and a like-minded community. “This is supporting our premiumization drive, both in India and overseas”, he said. Key Points
Economic Times