Posts tagged ‘North America’

17/09/2015

How Modi’s Win Helped Boost India’s Ranks of Millionaires – India Real Time – WSJ

The ranks of the millionaires grew at a faster rate in India than anywhere else around the globe in 2014 thanks to the election of Prime Minister Narendra Modi and falling oil prices, according to a report on worldwide wealth.

After only marginal growth in 2013, India’s tally of high-net-worth individuals increased by 26.3% in 2014 compared with the previous year and with 17.5% in China and 8.2% in the U.S. over the same period, the data from consultants Capgemini and RBC Wealth Management, said.

High-net-worth individuals are defined as those with investible assets of more than $1 million.

The report says that the election of “a popular reform-minded prime minister” in May 2014 “had a positive effect on the economy and equity markets, boosting [high-net-worth-individual] gains.” More In Narendra-Modi

Mr. Modi’s win “helped to boost investor confidence and contributed to strong performance in the stock market,” the report’s authors said.

“Lower oil prices helped reduce the country’s budget deficit and retail inflation fell considerably,” they added. Still, in absolute numbers of very wealthy, India continues to lag behind. It had 1,975,000 people with $1 million to invest in 2014, compared with 4,682,000 in the U.S. and Canada and 8,901,000 in China.

The Asia Pacific region as a whole though, including India and China, had a higher number of millionaires than North America in 2014.

Source: How Modi’s Win Helped Boost India’s Ranks of Millionaires – India Real Time – WSJ

28/07/2015

Maruti Suzuki Q1 profit jumps 56 percent; lower costs, higher sales | Reuters

Maruti Suzuki India Ltd(MRTI.NS), India’s top-selling carmaker, said on Tuesday first-quarter net profit rose 56 percent helped by lower costs, favourable foreign exchange rates and higher sales, but still missed bullish analyst estimates.

A Suzuki badge is reflected on the body of a Maruti Suzuki Eeco car at a Maruti Suzuki stockyard on the outskirts of Ahmedabad April 26, 2013. REUTERS/Amit Dave/Files

Maruti, controlled by Japan’s Suzuki Motor Corp (7269.T), said profit for the April-June quarter was 11.9 billion rupees ($185.94 million), up from 7.6 billion rupees in the same period a year earlier. Analysts had expected a profit of 12.35 billion rupees, according to Thomson Reuters I/B/E/S.

Net sales rose about 18 percent to 130.8 billion rupees, the company said, as India’s car trade continues to grow. India is expected to become the world’s third-largest car market by 2020, moving up three places.

“During the quarter, higher volumes, cost reduction efforts, lower sales promotion expenses, and favourable foreign exchange helped improve the performance,” the company said in a stock exchange statement.

Total expenses as a percentage of net sales fell to 91 percent during the quarter from about 96 percent in the year ago period, while finance costs were halved to 190.4 million rupees. Maruti, which imports certain car components from Japan and also pays royalty to its Japanese parent, Suzuki, is benefiting from the yen’s weakening.

The carmaker, which sells about one in every two cars in India, wants to increase its share of the premium car segment at a time when rivals like Honda Motor Co (7267.T) and Ford Motor Co (F.N) are launching cheaper, compact cars – Maruti’s mainstay.

Maruti has had little prior success in the premium segment and is now planning an aggressive rollout of new vehicles and dealerships to capture buyers with deeper pockets – a move that is expected to boost margins and profits, say analysts.

Next week Maruti will launch the S-Cross – a crossover between a sport-utility vehicle and a hatchback – the first car to be sold at its new Nexa showrooms. These spruced-up showrooms will differ from existing dealerships in design and service, managing director Kenichi Ayukawa said recently.

“It is a very good strategy because as income levels rise we will see that more and more consumers will prefer premium vehicles,” said Nitesh Sharma, auto analyst at Mumbai-based brokerage, Phillip Capital, adding that it will boost margins.

Shares in Maruti, valued by the market at about $20 billion at Monday’s close, were trading 0.5 percent higher at 4,200 rupees a share at 0850 GMT in a weak Mumbai market.

Maruti’s shares have risen more than 25 percent since January – the highest among major automobile companies in India.

($1 = 64.0000 rupees)

via Maruti Suzuki Q1 profit jumps 56 percent; lower costs, higher sales | Reuters.

28/01/2015

BBC News – The village that just got its first fridge

Three-quarters of the world’s homes have a fridge – an appliance that can revolutionise a family’s life. A tailor in one Indian village has just become the first person in his community to own one – something he has dreamed of for 10 years.

Santosh choosing a fridge

Santosh Chowdhury is pacing up and down speaking into his mobile phone.

“How much longer? It’s left past the auto-rickshaw stand, yes that’s right,” he shouts, and then continues his nervous pacing.

It’s a big day for him and indeed for the village of Rameshwarpur, just outside Calcutta in north-east India.

Santosh has bought a new fridge – not just his first but also the first in the entire community of 200 people. “Owning a fridge is quite rare in a village like ours,” he says.

The lack of fridges in Rameshwarpur reflects the situation across the whole of India. Only one in four of the country’s homes has one. That compares to an average of 99% of households in developed countries.

But change can be rapid when linked to an emerging middle class. In 2004, 24% of households in China owned a fridge. Ten years later this had shot up to 88%.

“Ours is the first generation to own a fridge in my family,” says Santosh. “No one in my father’s and grandfather’s time had ever seen one.”

Rameshwarpur has a distinctly rural feel. People bathe in a pond in the middle of the village, children fly kites in the dusty lanes. The homes are little more than simple huts, made of mud and brick. But the village has electricity and many houses have televisions.

Santosh works as a tailor. He lives in a modest, two-room hut which doubles as his home and workplace. “I don’t have a regular job as such,” he says. “Sometimes I also work part-time in a factory. I make about three to four dollars a day.”

Life is quite hard, especially for his wife Sushoma.

She cooks lunch, stirring a pot of rice on a wood fire outside their hut. It’s something she does every day because they have no way of storing leftovers. So Santosh has to go the market early each morning to shop for groceries.

He’s always wanted to make life easier for his wife and has been dreaming of buying a fridge for 10 years. “Owning one will be so convenient,” he says. “You don’t have to buy vegetables every day, you can store food – especially in the summer.”

So he’s been saving hard, putting away a bit of money every month for a purchase that costs more than a month’s salary. “I don’t make that much money, that’s why it’s taken me so long. But now I have enough,” he says, smiling.

At one of Calcutta’s high street stores, about 15km from his home, Santosh had several models to choose from. Peering inside, he ran his fingers along the side of a bright red model.

“It was quite confusing. It was my first time you know. I couldn’t figure out which one to get,” he says shyly. “My wife wanted a red one. I wanted one that will consume the least power. We need to keep our bills down.”

Finally, the deal was struck. Santosh got a discount because it was the final week of the winter sales. The price was 11,000 rupees (£120) – but more importantly, he was able to pay in instalments, having paid just under half the money up front.

“No one pays cash any more like they used to,” says store manager Pintoo Mazumdar. “Everyone can get a loan from the bank or the store – all you need is a bank statement and ID. That’s why so many lower income people can afford to buy a fridge these days.”

 

FRIDGEONOMICS

Fridge ownership around the world

76% Global average

65% Asia Pacific

99% Europe and North America

87% Latin America

63% Middle East and Africa

Source: Euromonitor

 

Santosh’s fridge finally arrives on the back of a cycle rickshaw. He walks along next to it with a broad smile. Many of the villagers come out on to the lane as well, craning their necks to get a better look.

“Careful, careful,” he cries out as a couple of them help carry the fridge into his house.

Then it’s time for a religious ceremony.

His wife applies a dab of vermillion to the fridge, to keep away evil spirits, and then blows on a conch shell to seek divine blessings and welcome the fridge into their home. The fridge has pride of place – next to Santosh’s sewing machine and their tiny television set.

They simply cannot stop smiling.

“We’ve dreamt of this moment for so long,” says his wife Sushoma. “Some of our neighbours have already asked us if they, too, can store some food in our fridge. “And I can’t wait to drink cold water in the summer.”

As Santosh shows off his fridge everyone crowds around, excited. “Imagine, they won’t have to shop for fresh vegetables every day,” says one woman. “I’m thinking of getting one too,” another man says.

It’s a special moment for the Chowdhurys. This acquisition could potentially transform their lives. “I can focus on finding more work and not worry about buying food for the family,” Santosh says. “My wife will get more free time and perhaps she can give me a hand as well.”

With those words, he opens his fridge and places the first contents inside – tomatoes, an aubergine, eggs and some milk.

via BBC News – The village that just got its first fridge.

07/12/2014

Best Buy to sell China business, focus on North America | Reuters

U.S. retailer Best Buy Co Inc (BBY.N) said on Thursday it will sell its struggling China business, Five Star, to domestic real estate firm Zhejiang Jiayuan Group in order to focus on its North American operations.

A Best Buy store is seen in Niles, Illinois  near Chicago, September 23, 2013. REUTERS/Jim Young

The world’s largest consumer electronics chain didn’t disclose financial terms of the sale of the 184-store network, announced in a statement.

Best Buy has struggled to fend off Chinese rivals in a crowded market, as other U.S. firms have complained that operating in the country has become more of a challenge.

“The sale of Five Star does not suggest any similar action in Canada or Mexico. Instead, it allows us to focus even more on our North American business,” Hubert Joly, Best Buy’s president and chief executive officer, said in the statement.

Joly added that Best Buy would continue to invest in its private label operation in the country. Best Buy’s China operations accounted for around 4 percent of its sales in the most recent financial year, ended Feb. 1.

via Best Buy to sell China business, focus on North America | Reuters.

12/06/2014

China Minting Millionaires in Global Wealth Surge – Businessweek

Where do the world’s rich live? As has long been true, the U.S. has more millionaires (in U.S. dollars) than any other country, with 7.1 million. But China last year came in second with 2.4 million millionaire households, beating Japan with half as many. The number of millionaire families around the world reached 16.3 million last year, up from 13.7 million the year before.

Visitors crowd around a luxury yacht on display during the 19th China International Boat Show in Shanghai on April 10

All told, the total value of global private wealth grew far faster than global economic output, up 14.6 percent, to $152 trillion, compared with an 8.6 percent increase in 2012. Much of the new money originated in the Asia-Pacific region (excluding Japan), up by 30.5 percent, to $37 trillion. That put Asia in the No. 3 spot for riches, behind North America and Europe, according to the 14th annual survey on private wealth by Boston Consulting Group.

Driven by rapid GDP growth in China and India, Asia is expected to surpass North America and Europe as the leading source of global wealth in 2018. That year, the global pot of gold will total a bit less than $200 trillion, with the proportion from Asia projected to reach $61 trillion, slightly more than North America, with $59.1 trillion. “The Asia-Pacific region and its new wealth will account for about half of the total growth,” the report predicts.

via China Minting Millionaires in Global Wealth Surge – Businessweek.

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