Friday, October 13, 2023

Revving Up: Malaysia's Used Car Market Accelerates Amid Economic Caution

 With cautious sentiment driven by inflation and interest rate hikes, the growth in used car sales is projected to continue.

  • Rising Demand: Used car sales to surge in 2023 amid cautious economic outlook.
  • Affordable Option: Customers opt for pre-owned vehicles due to inflation and interest rate concerns.
  • Online Platforms: Online platforms expedite used car buying and selling process.
  • Growth Projection: Used car sales projected to grow 10% YoY in 2023.1.
  • As per Ken Research, as Malaysia's used car market gains momentum in 2023, economic uncertainties prompt customers to gravitate towards more affordable pre-owned vehicles.

1. Resilient Used Car Sales Surge in 2023 Amid Economic Caution

Malaysia Second Hand Car Industry

Malaysia Used Car Market Trends

The used car market in Malaysia has witnessed a resurgence in 2023, driven by economic caution and consumer preference for affordable pre-owned vehicles. Datuk Tony Khor, President of the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM), underlines that factor such as inflation, interest rate hikes, and slower economic growth will influence consumer sentiment this year in a big way.

When economic conditions become uncertain, there is a tendency for customers to opt for cost-effective pre-owned vehicles, contributing to the growth of the used car segment.

2. Digital Platforms and Trade-ins Shape the Market Dynamics

Malaysia Second Hand Car Market

Malaysia Used Car Market Scenario

Khor highlighted the vital role of online platforms in reshaping the used car market landscape. These digital platforms are expected to expedite and simplify the process of buying and selling used cars, providing both buyers and sellers with a convenient and efficient way to conduct transactions.

The trend of trading in old vehicles when purchasing new ones has gained traction. With around 65% of new car buyers opting for trade-ins, the supply of used cars continues to be supported by the constant influx of new vehicle sales.

3. Steady Industry Performance and Positive Outlook

Malaysia Second Hand Car Sector

Malaysia Pre-Owned Car Market Future Scenario

Recent data from the Malaysian Automotive Association (MAA) reveals a strong performance in the automotive sector. Sales of new vehicles witnessed a remarkable 39% surge to 62,649 units in the last month, underlining the market's resilience.

The year-to-date sales volume for February highlights steady growth, standing at 112,128 units compared to the same period in the previous year. Passenger vehicle sales reached 55,555 units in February 2023, indicating a positive trend.

 Further boosting the market, analysts project strong sales growth in March 2023, with Japanese car manufacturers capitalizing on fiscal year-end effects and the extended sales and service tax (SST) exemption. As the industry remains well-positioned, strong orders, steady input costs, and supply chain stabilization are set to propel the sector's growth and earnings throughout the year.

Conclusion

According to Ken Research, as Malaysia's used car market gains momentum in 2023, economic uncertainties prompt customers to gravitate towards more affordable pre-owned vehicles. With cautious sentiment driven by inflation and interest rate hikes, the growth in used car sales is projected to continue, supported by online platforms and the preference for personal transportation.

India's UPVC Door and Windows Market Set to Soar: Exploring Factors Driving the 2027 Boom!

 The growth projections for India's UPVC door and windows market are promising. Industry experts estimate that the market will experience a CAGR of around ~11.3% from 2022 to 2027.

Story Outline

  • UPVC Demand in Evolving Real Estate: India's real estate evolution sees surging demand for UPVC doors and windows, driving market growth towards modernization by 2027.
  • Government's Role in Housing Evolution: Government investments anticipate increased urban housing demand, driven by initiatives like the Urban Infrastructure Development Fund, reshaping the real estate landscape.
  • Influential Market Factors: Rising personal income aligns with infrastructure growth, while climate resilience and affordable housing policies contribute to evolving market dynamics.

PVC Resin's Pricing Influence: PVC resin pricing, swayed by demand, inventories, and oil costs, showcases sensitivity as historical trends indicate. Future trends remain molded by these factors.



India's real estate and construction sectors have been experiencing rapid development, with a noticeable shift towards modernization and efficiency. One significant aspect of this transformation is the increasing demand for UPVC (unplasticized polyvinyl chloride) doors and windows. This trend is driven by a variety of factors that are projected to lead to substantial growth in the UPVC door and windows market in India by the year 2027.

1. Government's Mega Investment Plans Set to Reshape the Market


Anticipated government initiatives and investments in the real estate sector are predicted to generate a surge in demand for the construction of new housing units, particularly in urban centers such as Delhi and Bangalore.

The upcoming period envisions new building construction taking the lead in market dominance. This trend is predominantly attributed to the robust infrastructural advancements in the northern and central regions of the nation.

The initiation of the Urban Infrastructure Development Fund, backed by a substantial INR 10,000 Cr. investment in the Union Budget 2023-24, exemplifies a proactive stride towards holistic national advancement.

2. Impactful Industry Factors: Income Rise, Climate Challenges & More…


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The rise in Personal disposable income is set to drive market demand, fueled by infrastructure development. Demand for door and window systems are expected to increase due to its ability to withstand extreme climatic conditions.

High emphasis by the Government on the housing scheme presents strong opportunity in the urban affordable housing segment. Increased consumption of PVC resin by the US and other countries will lead to price escalation if production is limited.

3. PVC Resin Price Faces Ripple Effects


The price of PVC resin is affected and expected to rise in future owing to various factors such as increase in demand, inventories, and oil prices.

The cost of PVC resin is subject to periodic fluctuations. Notably, it surged significantly from INR 64.0 per Kg in 2015 to INR 111.0 per Kg in 2022. This increase is attributed to heightened end-user demand, elevated oil prices, and reduced domestic supply.

The escalation in PVC resin prices stems from heightened demand for end-use products, oil price hikes, and decreased domestic supply. Additionally, the forthcoming years will witness PVC resin pricing influenced by end-use product availability and various other factors.

Powering Dutch Fields: Massey Fergusons Impact on Agri-Equipment

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Massey Ferguson is a globally recognized high-quality label that provides a diverse range of tractors and agricultural equipment. This advanced and premium brand of tractors caters to all farmers and addresses every emerging mechanization requirement.

STORY OUTLINE

  • Massey Ferguson's eco-tech reduces fuel by 10%, cuts pesticides 20%, and conserves 40% energy, embodying sustainable farming leadership.
  • Fuel efficiency aids climate goals, precision tech safeguards soil, and collaborations empower farmers, advancing eco-friendly practices.
  • Operating in 140+ countries, Massey Ferguson's 300+ machinery models drive productivity and sustainability, transcending borders with innovation.
  • Massey Ferguson's fusion of excellence and eco-consciousness drives Dutch green goals, leaving a lasting agricultural mark globally.

In the thriving Agricultural landscape of the Netherlands, one name has stood the test of time and innovation—Massey Ferguson. With a legacy rooted in mechanization and a commitment to pushing the boundaries of farming technology, Massey Ferguson has played a pivotal role in shaping the nation's Agri-equipment market.

1.Greening the Future: Massey Ferguson's Vision

Challenges in Dutch Agri Equipment Market

In an era when sustainable agriculture has become a global imperative, Massey Ferguson stands as a steadfast advocate for a greener tomorrow. As the Netherlands and the world navigate the intricate complexities of ecological responsibility, Massey Ferguson's vision emerges as a beacon of hope and progress.

Massey Ferguson's machinery has been reported to reduce fuel consumption by up to 10%, contributing to lower carbon emissions and decreased environmental footprint.

The precision technology embedded in Massey Ferguson's tractors has led to a potential reduction of up to 20% in fertilizer and pesticide usage, supporting healthier ecosystems and soil quality.

The integration of eco-friendly features in Massey Ferguson's equipment has led to energy savings of approximately 40% compared to conventional models, aligning with the broader global goal of reducing energy consumption.

2.Sustainability and Excellence: Massey Ferguson's Impact

Major Players in Agriculture Equipment Market 

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Massey Ferguson's influence extends beyond machinery—it fosters sustainability and excellence. Committed to ecological responsibility, it aligns with the Netherlands' sustainable agriculture drive. Advanced, eco-friendly technology equips farmers for a greener, more productive future.

Fuel-efficient equipment reduces emissions up to 10%, aiding climate goals. Precision technology cuts fertilizer and pesticide use by 20%, safeguarding soil and water. Energy-efficient components yield 40% energy savings, conserving resources. Collaborations with experts refine eco-friendly practices.

Educational initiatives empower farmers for seamless sustainability transition. Massey Ferguson's role in Dutch agriculture contributes to national green goals and biodiversity preservation. By intertwining excellence with eco-consciousness, it shapes an agricultural legacy of enduring positive impact.

3.Growth Beyond Borders: A Global Footprint

Massey Ferguson's influence isn't confined to Dutch fields. The brand's reach extends across the globe, making it a trusted name in Agri-equipment. Its innovations have traversed continents, supporting farmers worldwide in their quest for enhanced productivity and sustainable practices.

Massey Ferguson's market presence extends to over 140 countries, demonstrating its truly global footprint. With a diverse range of over 300 tractor models and farm machinery.

In conclusion, Massey Ferguson's legacy in the Netherlands' agricultural landscape is a testament to its pioneering spirit and commitment to sustainable excellence. Through its vision for greener farming, impactful technology, and global outreach, Massey Ferguson shapes a resilient agricultural future that transcends borders, benefiting both farmers and the planet.

How Charges against Major Palm Oil Companies Rock Indonesia's Industry?

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The charges against major Indonesian palm oil companies expose a critical industry crisis, highlighting governance flaws and corruption's impact.

                                                                                  Storyline

  1. Charges Rock Palm Oil Industry: Major Indonesian palm oil firms charged with corruption in cooking oil scandal.
  2. Transparency and Accountability: Legal proceedings spotlight governance flaws, emphasizing need for transparency and accountability.
  3. Corporate Responsibility: Verdicts hold executives accountable, underlining importance of ethical conduct and corporate responsibility.
  4. Catalyst for Reform: Scandal prompts industry calls for comprehensive reforms, demanding oversight, ethical practices, and sustainability.
  5. As per Ken Research, the charges against major Indonesian palm oil companies expose a critical industry crisis, highlighting governance flaws and corruption's impact. As legal proceedings unfold, the imperative of transparency and accountability gains prominence.

1. Current Scenario & Charges

Indonesia's palm oil sector faces a severe shakeup as three leading palm oil companies - Permata Hijau Group, Wilmar Nabati Indonesia, and Musim Mas - are charged with corruption in connection to a cooking oil scarcity scandal. The companies allegedly conspired with a trade ministry official to obtain export permits, allowing them to circumvent domestic cooking oil quota requirements. The fallout from this controversy happened across the world's largest palm oil producer, raising concerns over industry practices, transparency, and governance.

edible oil market        

2. The Cooking Oil Scandal Unveiled

Indonesia Edible Oil Industry

The scandal came to light in the midst of a cooking oil shortage crisis in early 2022. Executives from the accused companies were arrested for their role in securing export permits, enabling the diversion of cooking oil away from domestic markets. This situation left Indonesia, the producer of over half of the world's crude palm oil (CPO), grappling with an acute shortage of a commodity that is essential for its citizens' daily lives.

3. Legal Fallout and Accountability

Indonesia Palm Oil Market

The prosecution has already led to convictions and imprisonment of the implicated executives earlier this year. However, the spotlight has now shifted to the companies themselves, as prosecutors aim to hold them accountable for the substantial state losses resulting from their actions. The trial's verdict emphasized that the executives' actions represented their respective companies, making them liable for restitution.

4. Industry and Governance Implications

Indonesia Cooking Oil Market

The charges against these major palm oil players have cast a spotlight on the intersection of the industry, governmental regulations, and corruption in Indonesia. This case underscores the need for greater transparency, accountability, and comprehensive regulatory reforms in the palm oil sector. As authorities proceed with legal action, industry observers and experts emphasize the integration of these efforts into broader systemic improvements to address the long-standing issues plaguing the palm oil industry. The case serves as a reminder that sustainable growth requires not only economic success but also adherence to ethical practices, governance, and the rule of law.

Conclusion: Forging Industry Reform

As per Ken Research, the charges against major Indonesian palm oil companies expose a critical industry crisis, highlighting governance flaws and corruption's impact. As legal proceedings unfold, the imperative of transparency and accountability gains prominence. Verdicts against executives and ensuing company charges underscore corporate responsibility's significance. This scandal marks an important juncture, calling for comprehensive sector reform. Industry stakeholders, regulators, and civil society unite in demanding tighter oversight, ethical practices, and sustainability. The industry's trajectory hinges on addressing these challenges to restore trust, align economic progress with ethical conduct, and shape a responsible future for Indonesia's palm oil sector.

Thursday, October 12, 2023

Global Health Insurance market is expected to grow at a CAGR of ~6% by 2028: Ken Research

Due to recent pandemic of Covid 19 health insurance market has grabbed growth ensuring economic help to comman man for better health care facilities with easy money handling and increasing awareness especially after COVID 19.

STORY OUTLINE

  • Launch of new policies, mergers, acquisitions and partnerships to propel growth in future
  • Covid 19 has a huge impact on the health insurance market on Global level.
  • Factors, which are responsible for the growth, are the higher cost in hospital bills, increasing prevalence of chronic diseases etc.
  • According to Ken Research, the Global health insurance market is projected to grow to ~6% between 2022-2028.

1. Global Health Insurance Market expected to surge with ~6% CAGR Growth in 2022-2028


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The Global health insurance market is witnessing growth during recent years. It is a cost-sharing tool, which cover medical expenses and charges on a particular illness. They can be taken as per the convenience of the individual. The health insurance market is projected to at a CAGR of ~6% from 2022 to 2028.

The market is very dense for new entrants. The market participants often engage in partnerships with healthcare facilities to boost their health insurance sales and expand their market revenue.

Furthermore, market strategies, such as mergers, acquisitions, collaborations, and joint ventures are also prominent in the global health insurance market.

Increasing disposable income and healthcare expenditure, especially in China and India, are also emerging as major driving factors for the market's growth.

The National Cancer Institute predicts that in 2022, there will be 1,806,590 new instances of cancer identified and 606,520 cancer-related deaths in the United States.

2. Which are the driving factors for the growth of Global health insurance market?

The health insurance industry is growing at a faster rate in the rural areas as it offers various benefits, including reimbursement of the insured person's disease treatment costs and a lump sum payment in the event of a long-term illness.

Rural consumers are also becoming more knowledgeable about health insurance coverages such as in-patient hospitalization, pre- and post-hospitalization charges, ambulance charges, and domiciliary hospitalization, which supports market growth.

Moreover, doctors & teachers in rural areas have raised health insurance policy awareness, moving the health insurance market forward.

In addition, government entities such as institutions and cooperative banks play a vital role in improving the penetration of health products and services in rural areas by providing affordable insurance policies and facilitating the claim settlement process.  Thus, rising awareness of health insurance in rural areas is moving the global industry forward.

3. Impact of COVID 19 on global health insurance market

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Because of the high medical expenditures and increased awareness of the benefits of health insurance policies, the global health crisis caused by the coronavirus has accelerated the demand for COVID-19-specific and comprehensive health insurance policies among individuals.

Moreover, with rising incidences of COVID-19 cases and uncertainty-surrounding patients’ health, the demand for health insurance witnessed a sharp surge during the pandemic.

Furthermore, to provide relief to patients affected by the coronavirus, many countries implemented a wide array of health insurance policies and laws to assist their citizens.

Thus, the pandemic also changed people's attitudes about medical and health insurance policies, and they learned the importance and advantages of such policies.

Many insurance companies launched Coronavirus Health Insurance to tap on the market opportunity and offer assistance for COVID-19 treatment.

This emerged as the major driving factor for the market growth. The prevalence of other health issues also registered a surge during this period, thereby driving the health insurance market during the forecast period.

4. What is the competitive landscape of global health insurance market?

The leading players in the health insurance market are Cigna Corporation, AIA Insurance Group, UnitedHealth Group Inc., Allianz SE, Zurich Insurance Group Ltd., Express Scripts Holding Company, AXA, Aviva plc, Aetna, Inc. other prominent players.

North America, Europe, Asia-Pacific, Latin America, and Middle East make up the global health insurance market. Among these regions, North America dominates the health insurance market.

However, the Asia-Pacific is projected to witness the highest CAGR during the forecast period due to the presence of a largely untapped market in the region.

Some trending news came from Oscar Health Inc., an American health insurance company, announced its collaboration with Emory Healthcare, an extensive healthcare system in Georgia, US, to offer technology-connected health insurance and care in US cities including Atlanta and Columbus.

Also, SBI General Insurance, a leading Indian Insurance Company, announced its technological collaboration with Google Pay, offering its clients to buy health insurance through the google pay app.

In June 2021, Anthem, Inc. acquired the MMM Holdings, Inc., which allowed the company to serve the consumers in Puerto Rico with Medicaid and Medicare plans.

In April 2021, Molina Healthcare, Inc. entered into an acquisition agreement with Cigna Corporation in which Molina Healthcare acquired Cigna’s Medicare-Medicaid Plan and Texas Medicaid.

Navigating Growth and Resilience: Malaysia's Used Car Market Trends and Strategies

 Storyline

  • Middle-Class Expansion: Rising middle-class income drives increased car ownership and demand for pre-owned vehicles.
  • Digital Surge: Growing prevalence of online used car platforms boosts sales and enhances accessibility.
  • Strategic Pandemic Support: Moratorium on car loans sustains the used car industry during the pandemic.
  • Future Growth: Anticipated 8.5% (2027) CAGR as Malaysia's middle class expands and digital trends persist.
  • As per Ken Research, the Malaysia Used Car Market has undergone a robust growth, facilitated by the expanding vehicle ownership among the middle class, improved availability of financing options, and the flourishing trade-in culture

1. Driving Growth Factors in Malaysia's Thriving Used Car Market

Malaysia Used Car Market Size

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The Malaysia Used Car Market has experienced growth driven by factors like expanding vehicle ownership within the middle class, increased availability of financing options, and a growing trade-in culture. As the economy flourishes and the middle-class strata grows, more Malaysians are embracing car ownership, with middle-income earners of MYR 4,851 to MYR 10,970 per month investing in pre-owned vehicles. Moreover, the market is taking advantage of improved financing options, as banks and financial institutions offer specialized loans and flexible schemes tailored for used cars, enhancing accessibility for potential buyers.

2. Kuala Lumpur and Selangor: Driving Force Behind Malaysia's Used Car Demand

landscape for Used Car Market in Malaysia

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Kuala Lumpur and Selangor are the leaders in the road traffic landscape in Malaysia, resulting in a robust demand for used cars. The Klang Valley, encompassing these regions, holds a major share of the country's used car sales, exceeding 60%. This dominance is due to the urban population's high disposable income, the region's economic importance, and a concentration of dealerships and used car exchanges. Moreover, key commercial centers like Kuala Lumpur, Selangor, Melaka, and Johor, along with major tourism hubs like Kuala Lumpur, Penang, and Sarawak, contribute to increased road traffic and further fuel the demand for pre-owned vehicles.

3. Strategic Moratorium Boosts Sustainability of Malaysia's Used Car Industry Amid Pandemic

Passenger Car Finance Disbursed by Banks

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The implementation of a moratorium on car loans during the pandemic has played a strategic role in enhancing the sustainability of the used car business in Malaysia. This measure, announced under the National Economic Recovery Plan, also known as Penjana, has provided critical support to used car dealerships and financial institutions. These entities provide streamlined loan applications, rapid approvals, and comprehensive assistance, ensuring a smooth financing experience for customers. Moreover, most banks in Malaysia extend financing of up to 90% for Malaysian citizens and 70% for foreigners looking to purchase used cars. This intervention has effectively provided benefit in maintaining the used car industry's stability throughout the pandemic.

4. Market Set for 8.5% CAGR Amidst Middle-Class Expansion and Digital Surge

The Malaysia Used Car Market is anticipated to offer a robust growth rate with a CAGR of 8.5% from 2022 to 2027. This expansion is due to the increasing middle-class segment and the growing prevalence of online used car platforms. The middle-class population, accounting for 37.2% of total household income in 2019, is projected to further expand, showcasing a heightened demand for pre-owned vehicles. The increase in online auto-classified platforms and consumer preference for digital avenues are expected to bolster the used car sales growth. Moreover, FMCCAM's strategic initiatives, including the introduction of a new online marketplace and collaboration with used car financiers from Japan, China, and Taiwan, are expected to contribute to the increasing sales of used cars in the country.

Conclusion

As per Ken Research, the Malaysia Used Car Market has undergone a robust growth, facilitated by the expanding vehicle ownership among the middle class, improved availability of financing options, and the flourishing trade-in culture. As the middle-income group's economic capacity widens, an increasing number of Malaysians are going for car ownership, with an increased preference for pre-owned vehicles.

The market's accessibility has been further enhanced by the presence of diverse financing options offered by banks and financial institutions, catering specifically to used car purchases. Moreover, Kuala Lumpur and Selangor stand as major drivers of the market due to their significant road traffic contribution, showcasing the region's economic importance and urban population's disposable income. As the market evolves, strategies such as the introduction of extended warranty programs, OEM-certified car labs, and the rise of used EVs are shaping the landscape and broadening opportunities.

Moreover, the government's support, including the moratorium on car loans, has bolstered the market's resilience during the pandemic, ensuring the continued vibrancy of the used car industry in Malaysia.

Top 3 players in India Hosiery Market: Ken Research

 Story Outline

  • Lux industries Ltd.: A leading contributor of India Hosiery market. Lux Industries is known for its brands like Lux Cozi, ONN, and many others. They offer a wide range of hosiery products, including innerwear, socks, and thermals.
  • Rupa & Co. Ltd.: Rupa Co. is popular in India with brands like Rupa, Jon, Frontline, and Euro. They are famous for diverse range of products, from innerwear to casual wear.
  • Jockey India: Jockey India is the international brand, which provide variety of hosiery items.

According to Ken Research, the India Hosiery market is anticipated to evolve by 2028 by growing at a CAGR of ~12%.

The India Hosiery market is rapidly growing and is anticipated to attain a significant level of growth in the upcoming years.

There are many reasons behind the growth of India Hosiery market. Some of these reasons include penetration of online sales. Attraction of youth towards yoga and work out which need hosiery clothes. Changing lifestyles and demographic factors are bringing changes in demand patterns for hosiery. 

1. Lux Industries



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Founded in 1957, headquartered in Kolkata West Bengal, having more than 4000 employees worldwide, and wide presence in India along with a total revenue of ₹ 2312 cr (FY 2021-22)., this company is a leading contributor of India Hosiery market.  It has establishment of over 500,000 retail outlets all over India, and has offices in Kolkata, Delhi, Agra, Indore, Mumbai, Ludhiana, Jaipur, and Roorkee.

The new trends and innovations in Lux industries, which are significantly contributing in the market, are organic materials used in their clothing and having collaborations with various celebrities. The products made by this organization has various styles and range in clothing such as Vests, Gym Vests, Drawers and Trunks, Polo & Tees etc.

The economy or mass segment accounted for nearly 48 per cent of the company’s turnover in volume terms and nearly 33 per cent in value terms in 2022-23. The company had posted a total turnover of ₹2,368 crore during the year ended March 31, 2023. The semi-premium category accounted for nearly 41 per cent in volume and 52 per cent in value terms while the premium segment accounted for 11 per cent by volume and 15 per cent in value terms of the company’s total turnover.

2. Rupa and Co. Ltd.



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Rupa and Co. is one the most popular hosiery player in India. Established in year 1968. It has been growing with significant growth in Hosiery market and made a revenue of Rs. 195.44Cr.

It has its headquarters in Kolkata, India with thousands of branches all over the country. Lux, which occupies nearly 15 per cent share in the men’s organised innerwear market at present, is also hopeful of growing the womenswear segment and has identified it as one of the growth drivers.

It has launched a range of women’s innerwear and outerwear products under the brand Lyra. The company is looking to grow the women’s wear segment by introducing new products that are comfort driven. The women’s wear range contributed to close to ₹400 crore during year ended March 2023 and is likely to touch ₹600 crore by FY25, the company said.

The company is also looking to grow the premium innerwear range under the brand ONN among others into ₹500 crore by FY25, up from the current ₹349 crore in FY23.

3. Jockey International


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Jockey international is the world-leading brand, which is established in 1876 and became a public company in 2007 in India. It has its headquarters in Mumbai, India. It has a dominance over Indian region because of huge customer base and trustworthy quality. Jockey is leading in Hosiery market due to its innovative merges and collaborations in India. Some innovations are like.

It is setting new manufacturing units in Ibrahimpatnam Telangana and expanding its area. They have recently launched 3D briefs in India, which are quite popular in other countries. Their innovations are evolving the dominance of Jockey in the Indian Hosiery market.

Jockey has many Products available across India like briefs, socks, stockings, legging and innerwear for men and women. Main reasons for the growth of the market are its constant expansion and innovations in clothing market.

Exploring the Investment Landscape in the UK Agricultural Equipment Market

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Anticipated to achieve a CAGR of approximately 3.5% (2022-2027), the UK's agricultural equipment market expanded between 2014 and 2018, yet faced a significant downturn in 2019-2020 due to COVID-19.

STORY OUTLINE

  • The investment landscape in the UK agricultural equipment market is diverse, offering a spectrum of opportunities from established manufacturers to startups driving disruptive change.
  • Investors can benefit from the technological prowess of leading manufacturers like John Deere, CNH Industrial, and AGCO Corporation as they drive the adoption of precision agriculture tools.
  • Sustainability-minded investors can align their portfolios with companies like Fendt and New Holland, who are leading the way in eco-friendly equipment. Moreover, suppliers like JCB, closely aligned with government initiatives, offer a compelling investment avenue.
  • Investors seeking novel solutions can explore startups and niche players like Hands Free Hectare, which demonstrate the potential for innovative disruption in the sector.

The UK agricultural equipment market is undergoing a transformative shift, driven by technological advancements, sustainability imperatives, and changing consumer demands. This article delves into the investment landscape within this dynamic sector, focusing on key players and the opportunities they offer to investors seeking to capitalize on the future of agriculture.

1. Leading Manufacturers' Technological Advancements

[caption id="attachment_89956" align="aligncenter" width="513"]Major Players in UK Agri Equipment Market                      

Prominent agricultural equipment manufacturers are at the forefront of innovation, investing significantly in cutting-edge technologies. Companies such as John Deere, CNH Industrial (parent company of Case IH and New Holland), and AGCO Corporation (including brands like Massey Ferguson and Fendt) are embracing precision agriculture solutions.

These players are developing GPS-guided tractors, sensor-driven machinery, and data analytics platforms. Investors who recognize the innovation potential of these manufacturers can tap into their market dominance and benefit from the growing demand for high-tech farming solutions.

2. Sustainable Leaders: Investing in Eco-Friendly Equipment

With the UK's commitment to achieving net-zero carbon emissions, investors are increasingly turning their attention to companies specializing in sustainable agricultural equipment. AGCO's Fendt.

For instance, offers electric tractors, while CNH Industrial's New Holland focuses on sustainable machinery design. Investing in these forward-thinking manufacturers aligns with both environmental goals and future market trends, as sustainable solutions gain momentum.

3. Government-Backed Initiatives and Suppliers

Government incentives play a pivotal role in shaping the investment landscape. Companies that provide equipment in line with government policies and support sustainable practices stand to benefit from these initiatives. A prime example is JCB, a UK-based construction and agricultural equipment manufacturer.

JCB's commitment to innovation and sustainability positions it well for government contracts and grants, making it an attractive investment option.

4. Startups and Niche Players

Emerging Players in UK Agri Equipment Market

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The changing landscape of collaborative ownership models has given rise to startups and niche players offering specialized solutions for the agricultural equipment market.

Startups like Hands Free Hectare, known for developing autonomous farming solutions, showcase the potential for disruptive innovation.

Investors who identify emerging players catering to specific niches can tap into innovative solutions that address unique challenges in the farming sector.

In conclusion, the UK agricultural equipment investment landscape is evolving rapidly, presenting opportunities that cater to a range of investment strategies. As the sector advances with technology and sustainability at its core, investors who strategically align their portfolios with key players and emerging trends can navigate this landscape to capitalize on a promising future for agricultural equipment innovation and growth.

Funding Circle Limited: Empowering Micro Businesses and Fueling Growth in US Micro Lending Market

 Funding Circle Limited is one of the leading players in the US micro-lending market with a global presence in countries like the United Kingdom, Germany, and the Netherlands. Funding Circle Limited has helped ~1,18,000 businesses worldwide with a loan distribution of $1.13 Bn.

STORY OUTLINE

  • The company recorded a revenue of $155 Mn in the year 2022 with a working strength of 1100 employees.
  • In 2022 alone the company allotted $2Bn amount of credit to small and medium-sized businesses.
  • Recently, the company raised $37 Mn of venture capital funding from another micro-lending institution named Accel Partners.

According to Ken Research: America is one of the world’s biggest markets for micro-lending with a significant market value. In America, there are a total of 80 Mn active customers in the micro-lending market which includes 50% of female clients. Funding Circle Limited is one of the market leaders in the US micro-lending market with a strong presence over the country. Currently, the company serves around 1,18,000 small and medium-sized businesses.

1.Overview of Funding Circle Ltd.

  • Funding Circle was founded in the year 2010 by three partners Sameer Desai, James Meekings, and Andrew Mullinger. The company offers products such as Business Loans and Commercial and Industrial Loans for small and medium-sized enterprises.
  • The company recorded a revenue of $155 Mn in the year 2022 with a working strength of 1100 employees.
  • The company’s headed by CEO Sameer Desai and it headquarter is located on Queen Victoria Street, London, United Kingdom.
  • The company spends 3% of its earnings on the CSR (Corporate Social Responsibility) fund annually.

US MICRO LENDING INDUSTRY

2.Funding Circle’s Position in US Micro Lending Market

  • Funding Circle Limited is one of the major players in the US micro-lending market. The company has distributed ~$19 Mn in small loan amounts to small and medium-sized enterprises across the country.
  • In 2022 alone the company allotted $2Bn amount of credit to small and medium-sized businesses which was a record for the company.
  • The company has ~$3 Bn outstanding loans under management globally and it has sustained ~1,00,000 jobs in 2022.

US MICRO LENDING MARKET

Click here:- Amount of credit provided by Funding Circle

3.Major Competitors of Funding Circle in the US Micro Lending Market

  • On Deck Capital Inc, American Express Kabbage Inc, LendingClub Bank, Zopa Bank Limited, Biz2Credit Inc., Lendio Inc., Bluevine Capital Inc., Fundera Inc. (NerdWallet), and StreetShares Inc are some of the major players of the US micro-lending market.
  • The American Express Company unveiled a line of financial service products for microbusinesses in 2022. The business has experienced tremendous returns of 70% over the past three years.
  • Lendio Inc. has unveiled a new mobile app with capabilities like access, analytics, and capital analysis to help small businesses.

US MICRO LENDING SECTOR

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4.Expansion of Funding Circle in the US Micro Lending Market

  • Recently, the company raised $37 Mn of venture capital funding from another micro-lending institution named Accel Partners. This funding circle is to grow the business in US micro-lending market and expand the range of products its offers.
  • In 2020. The company raised another $100Mn from several investors like Baillie Gifford, DST Global, Index, Ventures, Ribbit Capital, Rocket Internets, Sands Capital Ventures, and Temasek.
  • Funding Circle raised $65 Mn from its equity shares to further strengthen its international growth of marketplace lending.

Microfinance Industry in the US

5.Market Strategies of Funding Circle in the US Micro Lending Market

  • The target audience for Funding Circle is small and medium-sized enterprises that require frequent funds to support their business and other activities. The company has supported around 20% of country SMEs in 2022.
  • The company worked together with government agencies during the time of covid-19. The company helped many SMEs during the pandemic from the bankrupt situation and lends ~2 Bn loan amount in 2020 alone. It was one of the largest lenders during the pandemic under the CBILS (Coronavirus Business Interruption Loan).
  • The company is planning to diversify its customer base as it has announced to distribute loans to individual proprietors, medical patients, and farmers from next year.

Micro Lending Market forecast

Conclusion

Within the dynamic landscape of US micro-lending, Funding Circle has developed as a frontrunner, encouraging the desires of small and medium-sized ventures. With an exceptional presence crossing nations and a commitment to corporate social responsibility, Funding Circle's journey is stamped by development and impact. The company's considerable loan distribution of $1.13 billion to over 118,000 businesses globally stand as a confirmation of its viability. As Funding Circle proceeds to grow its impression and offerings, its collaboration with government offices amid the pandemic and plans to expand clientele highlight its part in driving financial flexibility. With visionary leadership beneath CEO Sameer Desai, Funding Circle's commitment to businesses' development and well-being is reshaping the forms of micro-lending, cultivating a flourishing environment for business people over the United States.

Wednesday, October 11, 2023

Europe Wheat Protein Market: Analyzing Growth, Trends, and Future Projections

 What Is The Size Of Europe Wheat Protein Industry?

Europe wheat protein market is growing at a CAGR of ~1.6% in 2017-2022 and is expected to reach ~Bn USD by 2028.

The Europe wheat protein Market is largely driven by heavy demands, increase in number of nutritional foods, athlete edible food items.

Due to the growing food & beverages industry and improving economic conditions, consumers in developed and developing European countries are inclining more toward convenience foods, bolstering the market's growth.

According to OECD, Europe's per capita wheat consumption increased from 89.5 kg in 2020 to 90.04 kg in 2021.

This increase in consumption is also supported by the rise in the area harvested under wheat.

Europe Wheat protein Market

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The area harvested under wheat is 70.1 in 2020 and 71.2 in 2021. Thus, the increasing land under wheat cultivation is pushing production, thereby increasing the per capita consumption of wheat. It leads to the wheat market growth during the forecast period.

Nutritional advantages is also the major growing drivers of wheat market in Europe due to increasing lactose intolerance and health – conscious customers.  Popularity in muscle building and athletic population is also an important factor, for the growth in the market

Europe Wheat Protein Market By Product Type

The Europe wheat protein market is segmented by product into wheat gluten; wheat protein isolates, textured wheat protein, and hydrolyzed wheat protein.

Dominant segment in the market in 2022 is wheat gluten segment accounted for the largest revenue share, due to various factors like better product Quality and Variety Production Capacity and Efficiency, Research and Innovation.

Wheat gluten segment has better distribution network and with competitive Pricing. This segment has seen effective marketing strategies with a strong brand presence and better Regulatory Compliance. These reasons are accounted.

Europe Wheat Protein Market By Application

The Europe wheat protein market is segmented by application into bakery & snacks, pet food, nutritional bars & drinks, processed meat, meat analogs, and others.

The bakery and snacks segment are the most dominant type of segment in the Europe wheat protein market in 2022.

The reason for the bakery and snacks segment to be dominant is due to increasing demand to fast food products and easy and portable foods.

Bakery and snacks segment has a popularity with tourists and they are homemade specialty, which makes them bestselling products in their region.

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Europe Wheat Protein Market By Regional Split

The Europe wheat protein market is segmented into France, Germany, Italy, UK, Russia, and rest of Europe.

France holds the largest market share in the European wheat protein market in 2022 due to a combination of factors. Its favorable climate and soil conditions support robust wheat production, while advanced agricultural practices ensure high-quality yields. Additionally, France's strong research and development in wheat breeding and processing technologies contribute to superior wheat protein extraction. These factors, coupled with established trade networks and a reputation for quality, position France as a dominant player in the European wheat protein market.

Competition Scenario In Europe Wheat Protein Market

The competitive landscape of the European wheat protein market is characterized by the presence of several key players, each vying for market share in this dynamic and evolving industry. Companies like Roquette Frères, Cargill, Archer Daniels Midland Company, and Tereos dominate the market with their extensive product portfolios and strong distribution networks. These industry leaders offer a wide range of wheat protein products tailored to various applications, from food and beverages to personal care.

Moreover, the market has witnessed the emergence of niche players and startups focusing on innovative wheat protein formulations, often catering to specialized dietary needs such as gluten-free or allergen-friendly products. As the demand for plant-based protein sources grows, companies such as Planteneers and Axiom Foods have gained recognition for their commitment to sustainability and product innovation.

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What Is The Expected Future Outlook For The Overall Europe Wheat Protein Market?

The Europe wheat protein market was valued at USD ~Billion in 2022 and is anticipated to reach USD ~ Billion by the end of 2028. The realistic growth scenario represents the most likely scenario as per current market conditions. This scenario assumes that there will be no overall impact on the market due to any potential COVID-19 waves in the future.

The growth in the market in future is driven by sustainability and health trends, more inclination towards plant-based diets for nutrition.

The rise of plant-based and flexitarian diets is driving demand for high-quality protein sources that can replace or complement animal-based proteins. Wheat protein offers an excellent solution, as it can be processed into various forms like seitan, a meat substitute, and used in a wide range of products, including burgers, sausages, deli slices, and more. This aligns with the preferences of consumers who are seeking to reduce their meat consumption for health, ethical, and environmental reasons.

Wheat protein is not only environmentally friendly but also offers notable health benefits. It is a complete protein source, containing all essential amino acids. Moreover, it is low in fat and cholesterol-free, making it an attractive option for as consumers become more aware of the nutritional content of their food, wheat protein can gain traction as a key component of balanced diets and sports nutrition products.

The versatility of wheat protein in terms of texture and functionality makes it an ideal ingredient for innovation in the food industry. Manufacturers can create a wide array of products with different flavors, textures, and forms, appealing to a diverse consumer base. This innovation can extend beyond meat alternatives to include dairy-free products, bakery items, and more, further driving the growth of the wheat protein market.

Governments and regulatory bodies in Europe are showing increasing support for sustainable and plant-based food initiatives. This can lead to favorable policies, subsidies, and incentives that encourage the production and adoption of wheat protein-based products. Additionally, investments in research and development can lead to advancements in taste, texture, and nutritional profiles, further bolstering the growth of the market.