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Demand, supply chain disruption may see pvt manufacturing shrinking in FY21

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Demand, supply chain disruption may see pvt manufacturing shrinking in FY21

The Reserve Bank of India’s (RBI’s) estimate that India’s economic growth will decelerate in the first half of the current year is largely on the back of demand and supply chain disruptions in the manufacturing sector, especially in the private sector.Corporate sector growth, which has a share of over 75 per cent in manufacturing growth, would need a few more months to get back to normal production, provided demand picks up.

 

Analysts on engineering and capital goods, for instance, said revenue for the first quarter of FY21 would take a 20 to 50 per cent hit.

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“It is difficult to make an estimate on how bad the hit for new orders will be as the quarter is yet to end. The impact on overall numbers will, however, be negative though the extent of it will depend on how long this lockdown continues,” said an analyst with a domestic brokerage firm.

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ALSO READ: India Inc welcomes RBI’s rate cut, says will revive demand in auto, realty

 

Bharat Giani, analyst at brokerage Sharekhan, expects automobile sales in FY21 to post double-digit decline, owing to issues on both production and supply sides. After 40 days of shutdown, automobile companies have resumed production at their facilities. For the first time ever, auto companies reported almost zero sales in April. “Most of them will not be able to get to the peak capacities anytime soon and are operating at 30 to 40 per cent levels,” Giani said.

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Car market leader Maruti Suzuki India is cautious, too. In response to an analyst question during a post earnings investor call, Shashank Srivastava, executive director at the company, said, “It is difficult to give a forward guidance of when the market will pick up. Car buying is a discretionary purchase. It depends a lot on sentiment. And sentiments can be very transient,” he said. In the cement sector, where a recovery was expected faster than others because of early start of infrastructure construction activity, the situation is no different with revenue and production both likely to take a hit.

 

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“All cement companies have started their plants and are now ready to supply according to the requirement. Demand from the road sector in Karnataka and eastern India has improved. However, there are a number of challenges for demand from urban and large centres,” said Mahendra Singhi, managing director (MD) and chief executive officer (CEO) at Dalmia Cement and president of the Cement Manufacturers Association. The present cement industry demand is 40 to 50 per cent of what it used to be.

ALSO READ: New borrowers set to get maximum benefit as RBI delivers another rate cut

 

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Sales volumes at UltraTech Cement may come under pressure in FY21 due to an expected slowdown in infrastructure projects and housing demand, said Emkay Global Financial Services, in a post-results report of the company.

 

UltraTech told analysts that the company started FY21 with higher inventories and despatches are continuously going up after resumption of operations in the third week of April.

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Currently, cement demand is coming from retail, rural market and some of the National highway projects where work has resumed with a view to complete them before monsoon.

 

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According to analysts at Narnolia Financial Advisors, the management, in an earnings call, said construction activity and demand will slow down for the next two-three months due to labour constraint. Nilesh Narwekar, CEO, JSW Cement, said,

“There is demand coming from infrastructure spending. So, we are seeing signs of demand no doubt, but for the cement industry, the peak demand season is the pre-monsoon period, which is March-May. We may see contraction compared to the same period last year.”

ALSO READ: RBI extends loan moratorium till Aug 31, silent on one-time restructuring

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From April, when the company had to shut down its plant completely, it is improving. “Our utilisations were at 20 per cent in April-end, and currently in May, we are at 45 per cent. So, we are in better position, said Narwekar. He said though it was looking at local hiring of labour, these changes take time to come. So, there will be an impact on business. JSW Cement has a current capacity of 14 million tonnes and it plans to reach 25 million tonnes by FY23.

 

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Rating agency CRISIL, which in a March report, anticipated 5-6 per cent volume growth for the cement sector in FY21 from 0.5-1 per cent estimated for FY20, changed its outlook in its May 18 report. It said respondents to a cement dealer survey said they expect volumes to shrink 10-30 per cent in FY21 in the base case scenario.

 

The steel sector, which is linked to revival of construction activity like cement, is also banking on infrastructure push but demand is seeing only a gradual pick up. JSW Steel, which has 18 million tonnes of consolidated capacity, said it was making efforts to gradually ramp up capacity utilisation. However, domestic demand outlook is expected to remain subdued in the near term as a vast majority of customers across automotive, construction, engineering and capital goods will also take time to resume operations and increase activity levels.

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ALSO READ: Experts disagree with MPC stance that inflation will fall below 4% in H2

 

Specialised steel demand, which is a new area for Indian steel makers, could be impacted because of continued battering of the automobile sector. A broken supply chain, exodus of migrant workers and strict guidelines laid by the government amid the lockdown, are creating bottlenecks in production, said officials at various auto companies. Despite the disruptions, Rakesh Sharma, executive director at Bajaj Auto remains optimistic. “We expect the positive forces to start playing out in the second half of the year and smart recovery to take place.”

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For all manufacturing companies, cost-saving measures would be the key to profit improvement whenever demand recovers. CARE Ratings, in its commentary, said there was uncertainty regarding duration of the pandemic and thus, downside risks to the economic growth are significant.

ALSO READ: Coronavirus LIVE: Haryana cases jump three-fold in last three weeks

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(Note: This is a Article Automatically Generated Through Syndication, Here is The Original Source

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Jeff Bezos Lookalike Cagdas Halicilar Enjoys Lavish Lifestyle By Impersonating The Billionaire 

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Jeff Bezos Lookalike Cagdas Halicilar Enjoys Lavish Lifestyle By Impersonating The Billionaire 

A 46-year-old German man, Cagdas Halicilar, is currently the talk of the town as he has emerged on the internet as Jeff Bezos’ lookalike. 

Thus, Cagdas Halicilar has transformed his profession into a professional Jeff Bezos doppleganger from an electrician. 

The 46-year-old reveals that now he lives an opulent lifestyle as an entrepreneur. 

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Cagdas Halicilar was often told by his family and friends that his looks were similar to those of a billionaire. However, only when he saw Jeff Bezos’ picture, did he understand what people around him meant. 

The New York Post reported that Halicilar dreamed of becoming a successful business executive. With him founding CB Transporte, a transport company, he lived his dream. 

After accepting his resemblance to Jeff Bezos, Cagdas Halicilar enrolled himself at a doppelgänger agency. 

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Cagdas Halicilar Gained Popularity by Being Jeff Bezos’ Lookalike

Most of the time, he dressed up in casual attire which made him look more like a billionaire, as Jeff Bezos also dressed up casually. 

Halicilar added, “It doesn’t matter whether I’m wearing a suit or wearing jeans and a polo shirt.”

He added how it requires a bit of effort to maintain his appearance like a billionaire. He shaves his head and applies Nivea cream regularly. The German doppleganger added that he has been doing the same for more than ten years now. 

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The 46-year-old has gained a lot of popularity and recognition over the years for his work as Jeff Bezos’s doppelgänger. His spouse complained that people often stopped him and asked for selfies on the street. 

In the “King of Stonks,” the German Netflix miniseries, he also had a guest spot. 

When in Seattle once, Cagdas Halicilar strolled through the Amazon campus. Surprisingly, Amazon employees thought that he was Jeff Bezos, reported TimesNow.

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He said,

“All the Amazon employees came to me, wanted selfies and thanked me for being proud to work at Amazon.” 

Furthermore, he added,

“My wish is to drink a whiskey with Jeff Bezos on his yacht. He is just as much of a yacht fanatic as I am.”

Also Read: Twitch Streamer Maya Higa Opens Up About Horrific Stalker Incident During Recent Livestream

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Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

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Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

A North Texas movie-goer has filed a lawsuit over Plano-based Cinemark drink sizes.

The lawsuit alleges that the movie theater chain fleeced its customers by shorting beverages sold in the chain’s canteens.

The chain loudly advertised that the 24-ounce container is a better deal, claiming consumers will get more for less price, while the reality is that Cinemark swindles customers by shortchanging them on sales for the 24-ounce beverage cup.

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Cinemark Accused of Shortchanging Customers on Beverage Sales

The proposed class action lawsuit has been filed in a Texas federal court and it indicts the movie.

The lawsuit further details how consumers got only 22 ounces of liquid, which is the maximum that can be filled in Cinemark’s 24-ounce cups.

It is alleged that the deception was part of a deliberate packaging and pricing practice.

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Also Read: California mother files lawsuit against Tesla after her 2-year-old child starts Model X and runs over her

Theaters pay almost 50% of the revenue generated by ticket sales to the studios but keep all the profits generated by the sales of food and beverage.

Increased competition has pushed the chain to offer concessions and bonuses, and this helped Cinemark in 2023 to record its highest concession sales of all time.

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However, the lawsuit alleges that Cinemark dupes its customers by shortchanging them on sales for the 24-ounce beverage cup instead of the 20-ounce beverage cup.

The reality is that consumers pay less for a 20-ounce cup, which is also a better deal than buying a 24-ounce beverage cup.

The complaint stated,

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“The size of the container in relation to the actual volume of the product contained in it was intended to mislead the consumer into believing the consumer was getting more of the product than what was in the container by a twelfth.”

The lawsuit was brought by Texas resident Shane Waldrop, who purchased a 24-ounce beverage cup in February which cost him $8.80 before tax.

However, on closer look, he realized that the cup was not large enough to hold 24 ounces. This was confirmed later when Shane took the cup home and found that it could contain only 22 ounces of liquid.

Thus, the consumer was duped 2 ounces for every cup he bought.

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The lawsuit charged the movie theater chain with neglectful falsification, deception, unjust profiteering, and a violation of Texas’ Deceptive Trade Practices Act and asked for a court order to halt such practices.

Waldrop is seeking compensatory damages and also demanded a jury trial over the claims.

Also Read: Johnson Controls subsidiary Tyco Fire Products to pay $750 mn to settle ‘forever chemicals’ lawsuit

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Mukesh Ambani’s 67th Birthday: How He Built The Reliance Industries

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Mukesh Ambani Birthday

It is Mukesh Ambani’s 67th birthday, and today we will try to get to know about the incredible journey of this man who, with sheer determination and grit, has created one of the biggest conglomerates in the world.

Reliance Industries, which passed into his hands in the 2000s, grew at a pace which was phenomenal.

Born on April 19 to Dhirubhai Ambani and Kokilaben in Aden, Yemen, where his father was based before moving back to India.

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Reliance Industries was already a big company, but its growth after Mukesh Ambani took on the reins was phenomenal.

With astute business acumen and strategic vision, Ambani has propelled Reliance Industries to dizzying heights, making it one of India’s most powerful empires.

It was under his stewardship that Reliance Industries diversified from being a petroleum company to enter other fields like Telecommunication and the Aerospace industry.

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The 5G revolution, which has swept the country, is largely due to the efforts of Mukesh Ambani and his company Jio. Jio offered high-speed and cheap internet services to the farthest corners of the company, and this helped it to capture a major chunk of the telecommunication sector. Today the nation’s population is using internet data in an unprecedented way.

Another diversification move was the entry of Reliance Industries into retail, energy, petrochemicals, and media. Reliance also acquired and invested in Future Group’s retail assets, as well as the creation of JioMart, an e-commerce venture.

Reliance also entered into a partnership with the Indian media company Viacom18 and the American entertainment giant Disney to create a joint venture, valued at $8.5 billion. The venture also gave exclusive rights to Reliance to distribute Disney productions in India.

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It is his futuristic vision which catalyzed Reliance Industries to invest heavily in the renewable energy sector. The company has built solar and wind energy farms and is contributing in a big way to help India achieve its renewable energy targets while lowering carbon emissions and environmental impact.

Again, it is his futuristic views which made him create the Jio Institute, which is a truly world-class educational institution dedicated to cutting-edge research and technical improvement. The stated motto of the institute is to help develop future leaders and innovators who will help the country grow to become a developed nation in the coming decades.

The phenomenal growth and success of Reliance Industry can be attributed to Mukesh’s keen sense to anticipate market trends, evolve as per changing consumer preferences, seize emerging possibilities, and produce products and services of the highest quality.

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As of April 19, 2024, according to Forbes, Mukesh Ambani’s net worth is to the tune of $115.8 billion, and he is ranked one of the top 10 wealthiest people in the world on Forbes magazine’s annual list of billionaires in 2021, 2022, and 2023.

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