India’s largest Wine Producer And Seller Sula Files DRHP For IPO

Mumbai-based Sula Vineyards, the country’s largest wine producer and seller and a market leader in the Indian wine industry in terms of sales volume and value since Fiscal 2009 has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The issue with a face value of Rs 2 per equity share is a complete offer for sale (OFS) aggregating to 25,546,186 equity shares. 

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

Sula set up its first vineyard in 1996 and in the year 2000 was the first to introduce varietal wines in India with the launch of Sauvignon Blanc, Chenin Blanc, Zinfandel, Riesling, Red Sparkling, and dessert wine offerings. In Fiscal 2005 it launched the first wine tasting room in India at its winery in Nashik, Maharashtra followed by country’s first vineyard resort in 2008, and in the same year, the wine-maker launched the first wine-themed music festival in India, “SulaFest”, at its Nashik facility in 2008. “SulaFest” has been widely recognized as the largest wine music festival in India and one of the largest wine music festivals in Asia, based on attendance. In Fiscal 2017, it launched a wine tasting room at its “Domaine Sula” facility in Karnataka.

The Mumbai-based wine maker is one of the fastest growing alcoholic beverage companies in India as of March 31, 2021 and has grown at a CAGR of 13.7% between Fiscals 2011 and 2021 according to Technopak report as mentioned in the DRHP. On the basis of total revenue from operations, it has gained market share from 33% in Fiscal 2009 in 100% grapes wine category to 52% in value in Fiscal 2020 and further increased to 52.6% in Fiscal 2021. Its business can be broadly classified under production of wine, import & distribution of wines and spirits and sale of services from ownership and operation of wine tourism venues including vineyard resorts and tasting rooms.

Sula has been recognized as the market leader across wine variants, including red, white and sparkling wines. The company distribute wines under a bouquet of popular brands such as Sula, its flagship brand besides other popular brands namely RASA, Dindori, The Source, Satori, Madera & Dia. Currently, it produces 56 different labels of wine across 13 distinct brands at its four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

Maharashtra and Karnataka are the two key major grape-producing regions in India, accounting for 95% of total table grapes and 97% of total wine grapes produced in the country are also the top consuming states, contributing close to 57% of the overall wine market. Sula's wine processing units are also located in the west and southwest of India, with the flagship facility located in Nashik, Maharashtra, and our wine processing units located in Nashik and Dindori in Maharashtra, and Bengaluru and Basavakalyan in Karnataka.

Sula services close to 8,000 hotels, restaurants and caterers, and tie-ups with distributors in Maharashtra, Haryana, Delhi, Goa and Punjab with close to 13,000 retail touchpoints across the country in 2021.

Sula’s Shiraz Cabernet is India’s largest selling wine by value in Fiscal 2021, with its gross billings amounting to Rs 91.83 crore in FY22. Recently it won five silvery and four bronze at the “Decanter World Wine Awards, 2022 and its Brut Tropicale won a gold medal at the International Wine Challenge 2022.

The companies revenue from operations increased by 8.60% from Rs 417.96 crore in Fiscal 2021 to Rs 453.92 crore in Fiscal 2022, primarily due to increase in sales of manufactured goods under its brands, increase in selling price of wine in select brands and markets, increase in revenue due to increased focus on premiumisation, favourable response its wine tourism business and increase in revenue from other operating income (government grants). It clocked a profit of Rs 52.14 crore in the financial year FY22 against Rs 3.01 crore from the previous year.

The Indian alco-beverage market is the third largest market in the world after China and USA by volume in terms of actual alcohol content of alco-beverages in CY 2020. The country is one of the fastest growing alcoholic beverage markets growing from 1.3 liters per capita of recorded consumption in 2005 to 2.7 liters in 2010 and Wine is less than 100 ml when compared to the world average of close to 13%. The Indian alco-beverage sector is projected to grow by a CAGR of 8% in volume for the period between FY 2021 to FY 2025 due to positive demographic factors

Wine market in India will remain concentrated with high barriers to entry due to the nature of the product in addition to the trade barriers prevalent in the alcoholic beverage market. The demand for wines in urban and semi-urban areas of India is on the rise.

In India, the harvest of wine grapes normally lasts four months, beginning in December and continuing through March. The basic procedure for making wine entails turning the sugar in grapes into alcohol through fermentation by yeast once the grapes have been transported to our wineries during this time. Between 1.5 to 3 weeks pass during the fermentation process, after which the wine is matured (if necessary), blended, stabilised, filtered, and bottled.

Kotak Mahindra Capital Company Limited, CLSA India Private Limited and IIFL Securities Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.            

On Occasion of World Youth Skills Day 2022, Wadhwani Foundation Calls For Empowering Youth With ‘Skills For The Future’

·        Reimagining and redesigning education and skills in post-COVID times is essential to prepare the youth for a rapidly changing world of work

·        Wadhwani Foundation and its skills-led initiative, Wadhwani Opportunity, share key skilling trends to ensure success in a futuristic work environment

Celebrated on July 15th every year since 2014, when the United Nations instituted World Youth Skills Day (WYSD); the theme for 2022 is “Transforming Youth Skills for the Future.” WYSD highlights the vital need to equip young people with future-ready skills, making them employment ready.

With rapid technological advances and evolving socio-economic trends in the backdrop of the COVID pandemic, job roles are changing at a pace and depth that has rendered an estimated 1.3 billion people worldwide affected by a skills mismatch. Therefore, the skills ecosystem requires skilling, reskilling and upskilling of massive proportions. As per McKinsey, 25 percent more workers than previously estimated will potentially need to switch occupations due to the pandemic.

Speaking on the occasion of WYSD, Dr Ajay Kela, President, and CEO, of Wadhwani Foundation, said, “Digital transformation of businesses, accelerated by COVID, is opening large volumes of high-paying job opportunities for global youth. Skills required to command these digital jobs can be acquired through numerous short-term training programs, and increasingly, employers are valuing such skills over academic credentials. On World Youth Skills Day 2022, I encourage the youth to capitalize on these opportunities through self-paced online re/upskilling programs, thus improving their job prospects and empowering themselves to become continuous learners for in-demand skills and jobs.”

On the occasion of World Youth Skills Day, Wadhwani Foundation and its skills-led initiative, Wadhwani Opportunity, share details on eight key emerging trends that will reshape the Indian skills ecosystem in times to come.

Further explaining the changing paradigm in skilling, Sunil Dahiya, Executive Vice President, Wadhwani Opportunity, added, “Covid-19 has effected fundamental changes at the workplace that demand future-proof skilling for future-ready jobs largely driven by advancing technologies and automation. However, along with the increasing importance of technological skills, the need for soft or employability skills has also surged. While smart machines are taking care of the repetitive and cognitive jobs, there is increasing realisation of how teams equipped with social-emotional skills possess a definite competitive advantage. Wadhwani Opportunity is, therefore, focused on imparting both deep domain and soft/employability skills to equip the youth towards family-sustaining jobs.”

The Monsoon Is Active With Its Incessant Rains, Disasters And Diseases

India experiences its annual monsoon season from July all the way through September. The monsoon brings with it its pleasant weather, rainy spells, and also many-many water-borne diseases!

Did you know that 21% of communicable diseases are water-borne? Be it stagnated and unused or consumable, water, when contaminated, can cause ailments that can be life-threatening, to say the least.

What diseases are we talking about?

The common cold and flu, malaria, dengue, leptospirosis, gastric infections, typhoid, jaundice, cholera, etc.—these are a few of the many water-borne viruses and infections that have plagued the country in the past and continue to do so.

The previous years have witnessed people take extreme health precautions due to the COVID virus. However, the measures taken for COVID might not necessarily help in the battle against the host of diseases and ailments that arise with the advent of the monsoon.

Research shows that we put ourselves at twice the risk of being infected during this season.

How?

During the monsoon, the immune system is already at its most vulnerable. This may be because it takes time for our white blood cells to adjust and deal with temperature changes. Additionally, the moisture in the air allows for dangerous organisms to thrive and multiply.

So, if you think you are immune to these diseases, think again!

Here is some startling data that will help you comprehend the situation better.

4% of global deaths are caused by water-related diseases. In India, water-borne infections afflict more than 34 lakh people, according to the World Health Organization (WHO). 10,738 people have died in the last five years alone, as a result of not having access to safe water during monsoons. In fact, the major cause of death among children aged under 5, is due to consumption of contaminated water!

The year of 2022 has also witnessed a couple of fatal cases and several people across the country who fell severely ill.

It was only after the 5th death, and over 100 hospitalizations, in Raichur that the true state of drinking water came into light. The case also revealed that about 25 villages in Raichur get water that is contaminated with arsenic. All of these people are dependent on tap water!

It is not just the rural areas that are going through this unfortunate situation. The cities too have had their share of cases. States like U.P, Assam and West Bengal have been consistently reporting several acute diarrheal cases that have been on the rise since 2017.

What we also may not realize is that many of these diseases go undiagnosed as they show their effects on your health over time and not immediately.

So, how can you make sure you and your family stay safe and healthy?

Here are a few things you can keep in mind for prevention of contraction:

* Make sure there are no sources of water kept open or left stagnant.

* Avoid eating food from the street or from restaurants that don’t practice good hygiene.

* If there are children at home, make sure they have had all their vaccinations.

* Boil water before consumption or drink from a trusted source like a water purifier.

But, can you trust water purifiers?

Of course, you can!

Water coming from water treatment equipment usually goes through a thorough multi-step process of filtration ensuring the water is rid of all possible contaminants.

But beware of under or over purification of water!

Then how do you get a water purifier that gives you perfectly purified water?

Water purifiers with pre and post carbon and sediment filters, when coupled with a good quality RO membrane, ensure clean drinking water is available to you at all times. However, not all brands customize the purifier based on input water.

Why is customization important?

The 30-year-old water purifier industry has been manufacturing and selling their products based on a one-size-fits-all model.

However, every household gets a different water quality and hence water purifiers shouldn’t be treated like a TV or any other household appliances. Your water purifier should be integrated with the right filtration process based on your needs. Hence, it is necessary to get a customized water purifier that treats very specific issues with the input water in your area.

While looking for water purifiers, always check and opt for brands that offer the above features along with routine water quality checks!

Water contamination has always been a major concern for this country. You can, however, prevent falling prey to these seasonal illnesses by being aware and using modern technology.

Hence, this monsoon, be mindful of your surroundings, take necessary precautions and make smart choices while enjoying your cup of hot tea/coffee (prepared with clean water, of course!).

About DrinkPrime

DrinkPrime was started to solve a personal problem - How do we get access to clean, safe, and healthy drinking water? Seems simple, but here’s what we found. First, most of the water you get in plastic cans isn’t fit for drinking. Second, less than 5% of Indians actually own a water purifier! That’s when we realized this was not just a personal problem but an opportunity to help more people. It’s been six years since we started on this journey. Today, more than 1 lakh users in 7 cities depend on us to access clean and safe drinking water!  

L&T Realty Set To Expand Its Footprint - Signs Up For Three Projects Worth $ 1 Bn In Prime Locations Of MMR

L&T Realty, the real-estate development arm of Larsen & Toubro, today announced its expansion plans in Mumbai market to drive growth. The company has entered into a binding agreement to jointly develop projects in South Mumbai, Western Suburbs and Thane worth Rs 8,000 Cr, with development potential of 4.4 million square feet. This is a part of company’s larger plan to strengthen its footprint in major metros by adding around 5 million sq. ft. per year over the next five years.

Commenting on the development, Mr. Shrikant Joshi, MD & CEO, L&T Realty said, “We are committed to expanding our reach and continue looking into new markets. With signature elements from L&T Reality, these projects will have iconic features that are designed keeping in mind global norms of excellence while also being a testament for their trust on us with faster execution capabilities.”

The South Mumbai project will be developed over a land parcel of five acres that offers clear harbour view along with good connectivity to all parts of Mumbai. This residential complex will have 50 storey twin towers with luxury amenities and retail.

The project in Western Suburb is set in a prime location of Andheri. This would be L&T Realty’s first Project in Western Suburb and the company will develop a modern gated residential complex comprising 20 towers with a modern shopping complex.

The Thane project will be developed on a 6-acres land parcel in the heart of the city. Surrounded by good social infrastructure and with ample amenities in-house, these high-rise residential towers will stand tall in the skyline of Thane.

L&T Realty has an extensive portfolio spanning 70 million square feet across Residential, Commercial and Retail developments and is currently present in Mumbai, Navi Mumbai, Bengaluru, Chennai, and to some extent in NCR and Hyderabad.

Background:

Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.

BOI Launches UPI Enabled Digital Portal For Opening Account Under NPS In Association With PFRDA And K-fintech

Bank of India, one of the premier Public Sector Bank in country lauched a new digital portal for opening account under National Pension Scheme (NPS) in association with Pension Funds & Regularity Authority of India PFRDA and K-fintech.

The platform was lauched at the hands of Sh. Supratim Bandhyopadhyay, Chairman, (PFRDA) at New Delhi. MD&CEO Shri A K Das (BOI), Executive Directors  Sh. Swarup Dasgupta, Sh. M Karthikeyan & Ms Monika Kalia also joined from Corporate office, Mumbai via vedio conferencing. Executive Director, Sh. A.G Das and CGM Sh. Mono Phunkar from PFRDA along with General Manager (GBD, BOI) Sh. D S Shekhawat, Zonal Manager (New Delhi Zone) Sh. Mukesh Sharma and K-fintech team were also present during the occassion.

Speaking on the occasion Sh. Supratim Bandyopadhyay, Chairman, PFRDA said, “We are happy to announce that Bank of India has lauched its digital mode in association with K-fintech for new NPS registration. I believe that this digital initiative by the Bank will compliment our efforts in a dynamic way in realizing our vision of pensioned Indian society.

MD & CEO Sh. A K Das said that Customers can now open the NPS account hassle free on their mobile by simply scanning the QR code. He further added that BOI is committed to provide hasslefree digital services to its customers and  firmly believes that this technological advancement will act as a impetus to help further in the growth of NPS accounts signifantly.

He further added that he NPS scheme offers number of various benefits to subscribers to enhance and secure their future. Through our techological integration with K-fintech, We have made the NPS subscription process easy, fast and hassle free for the customers.

ICICI Prudential Life Insurance Posts Strong Performance For Q1-FY2023

* VNB grew by 32% in Q1-FY2023

* VNB Margin expands to 31% (up 300 bps over FY2022)

* APE grew by 25% y-o-y in Q1-FY2023

* New Business Sum Assured grew by 25% y-o-y in Q1-FY2023

* Market leadership on New Business Sum Assured with market share of 15.8%

ICICI Prudential Life Insurance has posted a strong financial performance for Q1-FY2023 registering a 31.6% growth in its Value of New Business (VNB), a measure of profitability of the Company. The VNB of the Company stood at ` 4.71 billion with a VNB margin of 31.0%.

Annualised Premium Equivalent (APE) registered a strong growth of 24.7% year-on-year.

The Company’s New Business Sum Assured grew by 24.9% year-on-year to ` 2.21 trillion in Q1-FY2023. Significantly, the Company has achieved overall market leadership with the market share increasing from 14.7% in Q1-FY2022 to 15.8% in Q1-FY2023.

Persistency ratios have improved across all cohorts. The 13th month ratio, which is representative of the quality of business, stood at 85.5% for Q1-FY2023.

Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “The VNB for the quarter was ` 4.71 billion, a strong year-on-year growth of 31.6%. This was driven by a robust 24.7% growth in APE. Guided by the elements of our 4P strategy of Premium growth, Protection focus, Persistency improvement and Productivity enhancement, we believe we are on track to achieve our aspiration of doubling the FY2019 VNB in this fiscal.

Significantly, our efforts to reach out to the underserved customer segments and expansion in the distribution footprint have enabled us to maintain our position as market leader on New Business Sum Assured, which grew by 25% year-on-year in Q1-FY2023, taking the Company’s market share to 15.8% in Q1-FY2023. With a solvency ratio of 203.6%, which is well above the regulatory requirement, we are well positioned to capitalise on this opportunity.

With a moderating trend in COVID-19 related claims, we expect the country to be in the tail end of the pandemic. The pandemic was a trying time for all and it also nudged us closer to our very purpose of existence - providing financial security to our customers and their families. I can proudly say that we rose to the occasion and stood by our customers in their hour of need.

Company Performance:

Value of New Business (VNB) growth

The VNB for Q1-FY2023 grew by 31.6% year-on-year to ` 4.71 billion. The VNB margin for Q1-FY2023 stood at 31.0%, up from 28.0% for FY2022.

Progress on our 4P strategy

Premium Growth

APE grew by 24.7% year-on-year to ` 15.20 billion in Q1-FY2023. Within this, annuity APE registered a strong growth of 69.0% year-on-year to ` 0.98 billion in Q1-FY2023.

Protection

Protection APE grew by 22.2% year-on-year to ` 3.30 billion in Q1-FY2023. The protection mix stood at 21.7% of APE in Q1-FY2023, up from 17.0% in FY2022.

As a result of the focus on premium growth and protection business, New Business Sum Assured grew by 24.9% year-on-year to ` 2.21 trillion in Q1-FY2023. The Company’s market share, based on Total New Business Sum Assured, increased from 13.4% in FY2022 to 15.8% in Q1-FY2023, resulting in overall market leadership.

Persistency

Persistency ratios have improved across all cohorts. The 13th month ratio, which is representative of the quality of business stood at 85.5% for Q1-FY2023. Assets under Management stood at ` 2,300.72 billion at June 30, 2022.

Productivity

The overall cost ratio i.e. Cost/Total Weighted Received Premium (TWRP) stood at 23.8% in Q1-FY2023. The cost ratio for the savings line of business stood at 16.9% in Q1-FY2023.

Solvency Ratio

The solvency ratio was 203.6% against the regulatory requirement of 150%.

Definitions, abbreviations and explanatory notes

·       Annual Premium Equivalent (APE): APE is a measure of new business written by a life insurance company. It is computed as the sum of annualised first year premiums on regular premium policies, and ten percent of single premiums, written by the Company during any period from new retail and group customers.

·       Value of New Business (VNB) and VNB margin: VNB is used to measure profitability of the new business written in a period. It is present value of all future profits to shareholders measured at the time of writing of the new business contract. Future profits are computed on the basis of long term assumptions which are reviewed annually. VNB is also referred to as NBP (new business profit). VNB margin is computed as VNB for the period/APE for the period. It is similar to profit margin for any other business.

·       Persistency: It is the most common parameter for quality of business representing the percentage of retail policies (where premiums are expected) that continue paying premiums. Regular and Limited pay persistency in accordance with IRDAI circular on ‘Public Disclosures by Insurers’ dated September 30, 2021.

·       Total Weighted Received Premium (TWRP): TWRP is a measure of total premiums from new and existing retail and group customers received in a period. It is sum of first year and renewal premiums on regular premium policies and ten percent of single premiums received from both retail and group customers by Company during the period.

·       Cost Ratio: Cost ratio is a measure of the cost efficiency of a Company. Expenses are incurred by the Company on new business as well as renewal premiums. Cost ratio is computed as a ratio of all expenses incurred in a period comprising commission, operating expenses, provision for doubtful debts and bad debts written off to total weighted received premium (TWRP).

1 billion = 100 crore

1 trillion = 1 lakh crore

Indian EdTech Consortium Issues Clarification Around Mis-selling And Misleading Advertisements

Indian Edtech Consortium (IEC) formed under the aegis of IAMAI issues clarification around mis-selling and misleading advertisements by Edtech companies. To ensure the protection of consumers' interests, IEC has created a Two-tier Grievance Redressal Mechanism which has been actively resolving consumers' complaints at an unprecedented pace. So far, 100% of the complaints received by the IEC until June 2022 have been resolved completely while the complaints received in July are going through active screening for faster resolutions.

Furthermore, IEC highlights that each member company has appointed a dedicated Grievance Officer (GO) internally to address and assess the problem and offer remedial action accordingly. As a result, the member companies have been able to resolve about 99%+ complaints raised in the last 6 months at a company level. The self-reported data was presented to the Consumer Affairs Department recently where the government took note of the efforts taken by the IEC and its member companies and suggested forming a joint working group with relevant stakeholders for strengthening the ecosystem that fosters credibility, trust, and growth. To further streamline the resolution process, the IEC-member companies are also actively registering at the National Consumer Helpline (NCH).

“EdTech is well recognised in New Education Policy for not just lifelong learning but also for better and repeat learning. IEC as an SRO has also commissioned an Independent Grievance Redressal Board (IGRB) that constitutes Retd. Supreme Court Judge, industry veterans and leaders to adhere to the internal Code of Conduct. This vigilance will enable the dynamic Edtech sector to address the rising challenges, and propel a stronger ecosystem in the coming times. These steps will ensure confidence among users by having a strong grievance redressal ecosystem,” said Dr Aruna Sharma, Ex-Secretary, Government of India & Expert Member, IGRB while adding to the development.

The recent Advertising Standards Council of India (ASCI) data which shows that 33% of complaints are filed against the Education sector, at large. However, it also confirms that only 6% of the total complaints received are against the Edtech companies while the remaining 94% are filed against the traditional education system. This, in turn, makes the total count sub 2% for the Edtech sector.

“As industry leaders, we take the responsibility very seriously as we understand both the long-term impact and implications, our actions could create on the lives of millions. Edtech as a strong community has been far more prompt than our traditional counterpart in managing consumer complaints and grievances," said Mayank Kumar, Chair at IEC and also the Co-founder & MD at upGrad.

About Internet and Mobile Association of India

Established in 2004, the Internet and Mobile Association of India (IAMAI) is a not-for-profit industry body and the country's only organization representing the digital services industry with over 400 Indian and multinational corporations as its members, which include established companies in diverse sectors of the digital ecosystem as well as start-ups. Its mandate is to expand and enhance the online and mobile value-added services sectors. It is dedicated to presenting a unified voice of the businesses it represents to the government, investors, consumers and other stakeholders. IAMAI represents varied sectors such as digital advertising, digital entertainment, TravelTech, online gaming, digital payments, Fintech, digital commerce, Edtech, Healthtech, Agritech, blockchain, Big data, ML, AI & IoT, AR/ VR, LogisticsTech and so on.