By: Leechhvee Roy
Infrastructure improvements, like the upcoming Dwarka Expressway, Metro Extension, and Delhi-Mumbai Expressway openings, will drive property value growth.
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Leechhvee Roy is a journalist specializing in national news in India. With a focus on finance, real estate, and travel, Leechhvee's articles provide insights into the latest trends, developments, and reforms in these industries. Through her writing, she aims to inform and empower readers to make informed decisions in their personal and professional lives.
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Leechhvee Roy's focus is on the real estate industry, personal finance, and finance & economy in India. She frequently cites data and covers government announcements related to these topics. To effectively reach out to her, consider providing valuable insights or data-driven analysis about trends in the Indian real estate market, changes in investment opportunities or taxation laws applicable to individuals and businesses based in India.
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By: Leechhvee Roy
Infrastructure improvements, like the upcoming Dwarka Expressway, Metro Extension, and Delhi-Mumbai Expressway openings, will drive property value growth.
By: Leechhvee Roy
Dwarka Expressway drives property prices up from Rs 9,600-10,000/sq ft in Q4 2022 to Rs 11,300-11,700/sq ft in Q4 2023 as per Geetanjali Homestate report.
Prime picks for property investment: New to the realty market and contemplating where to invest your money in properties?
Top Mutual Funds: Are you planning to add mutual funds in your investment portfolio? Before making investment decisions, experts strongly advise
By: Leechhvee Roy
Warehousing market transformation: With e-commerce and online services becoming an integral part of everyone's life, the demand for online services has gone up like never before, fuelling the exponential growth of warehouses where things are stacked up for seamless delivery.The KPMG report provides insights into the booming warehouse market. According to the report, the Indian warehousing market is also gaining momentum with increasing demand and supply over the years. “The e-commerce players are the major occupiers, penetrating tier-2 and 3 cities as well, and eventually increasing the share of secondary markets.” Similarly, the government investment facilitating agency, Invest India, the Indian warehouse market is predicted to reach $34.99 billion by 2027, with a CAGR of 15.64 per cent from 2022. Some analysts are of the view that the warehouse market is currently experiencing unprecedented demand, outpacing supply by 1.4 times in the first half of 2023.However, in an exclusive interaction with Republic Business, Mudassir Zaidi, Executive Director – North, Knight Frank India shed light on the transformative journey of the warehousing market. He highlighted how significant changes, such as the introduction of GST, solar, DST, and IR, have reshaped warehousing operations.He stressed the evolution of warehousing from traditional go-downs to sophisticated Grade A structures, attracting both domestic and global players. Zaidi underscored the influx of investment in the sector, leading to rapid expansion and acquisition of warehousing spaces.'We've reached a stage where a lot of it has been acquired, is being built, is now being looked at for consumption,' Zaidi said, indicating a shift towards utilisation rather than expansion.However, he pointed out that the market is now experiencing a phase of consolidation and a slowdown in new inventory additions. This period is characterised by the absorption of existing supply, reorganisation, and consolidation efforts. 'We are seeing some stagnation there above. We are seeing some consolidation and further expansions will happen,' Zaidi elaborated, expressing confidence in the sector's resilience despite current challenges.Resilience amidst uncertaintyThe Indian warehousing sector has demonstrated resilience amidst the uncertainties of the global economic scenario, maintaining a steady trajectory since FY 2022. Warehousing demand peaked at 4.8 million sq mt (51.3 million sq ft) in FY 2022, rebounding strongly from the lows witnessed during the pandemic period. This heightened demand persisted into the subsequent year, despite a notable drop in demand from e-commerce entities.With the e-commerce segment historically serving as a major catalyst for transaction volumes, the market witnessed a shift in dynamics as manufacturing sector companies stepped in to fill the void. This diversification in demand sources underscores the sector's adaptability to changing market forces.However, the momentum witnessed in previous years saw a temporary slowdown in the first half of FY 2024 (April to September 2023). Transacted volumes amounted to 2.1 million sq mt (23 million sq ft), marking a 10 per cent decline compared to the corresponding period in FY 2023. Grade A spaces accounted for the majority of transactions, indicating a continued preference for quality infrastructure. Trending industry shiftsThe manufacturing sector outpaced the 3PL (third-party logistics) sector in transaction volumes during H1 FY 2024. Companies operating in the automotive, energy, and chemical sectors constituted a substantial portion of the total transacted volume, signifying the growing importance of manufacturing investments in the country. Factors such as the decentralisation of manufacturing capacity from China and government initiatives like 'Make in India' and the Production Linked Incentive (PLI) scheme have contributed to this trend.Meanwhile, 3PL sector companies continued to maintain their relevance, comprising 30 per cent of the transaction volume. Other sectors recorded minor contributions, highlighting the diversified nature of demand within the market.Conversely, the e-commerce sector experienced a slowdown attributed to previous expansion efforts during the pandemic. Major players in the sector have shifted their focus towards profitability, resulting in subdued leasing activity. Large-format captive/owned spaces, serving as regional hubs for e-commerce giants, have also contributed to this trend, with their leasing activities not accounted for in market demand assessments.Warehousing Post-GSTZaidi stressed that pre-GST warehousing strategies were primarily driven by tax efficiency, with each state's tax laws playing a crucial role. However, with the advent of GST, which unified tax jurisdiction across India, logistical efficiency emerged as a paramount consideration in warehousing location decisions.Despite these challenges, Zaidi expressed optimism about the prospects of the warehousing sector, anticipating further consolidation and expansion.Buoyant outlookExperts anticipate a buoyant outlook for India's warehousing sector, as the 3PL industry continues to play a pivotal role while manufacturing experiences significant growth. Despite cautious moves by the e-commerce sector, occupier demand remains resilient.The global shift of manufacturing hubs towards India and other Asian nations, alongside India's focus on enhancing its manufacturing capabilities, promises sustained growth in the warehousing domain.Although global economic and geopolitical factors may exert influence, India's robust fiscal position and resilient economy are expected to boost stability and growth potential in the warehousing market throughout fiscal year 2024, according to experts.
By: Leechhvee Roy
Gurugram's realty hotspot: In Gurugram's real estate market, the Southern Peripheral Road (SPR) is rapidly emerging as a top choice for both investors and homebuyers. Spanning a length of 16 kilometers, SPR has emerged as the newest and most sought-after realty hub in the region, attracting both investors and homebuyers with its connectivity to Manesar and South Delhi, luxurious living spaces, and promising future prospects.With several proposed infrastructure developments including metro and expressways connectivity giving a new impetus to the residential real estate demand, the Southern Peripheral Road is poised to redefine the urban living and business sphere in the region, say experts. SPR's luxury landscape: What's new?According to the latest Cushman & Wakefield Q1 2024 Report on SPR, the corridor witnessed 3,614 new unit launches during this period, with the luxury segment accounting for a 61 per cent share. This surge in new launches highlights the growing demand for premium living spaces in the region.Moreover, SPR's proximity to sectors like 68, 69, 70, 70A, 71, 72, 73, 74, 74A, 75, 75A & 76 has fuelled its appeal among homebuyers. The report highlighted the positive momentum in residential launches, with Gurugram dominating the entire Delhi NCR supply at 44 per cent, through focused demands primarily on SPR and NH8.According to the India Real Estate Report published by Knight Frank, this 90-meter-wide road has been highlighted as one of the critical arteries linking key destinations in Gurugram and Manesar with South Delhi through MG Road, Faridabad Highway and the elevated road between Dwarka and Sohna expressways.The road's width ensures smooth traffic flow, linking important arteries like the Golf Course Road, Golf Course Extension Road, and NH-8. Moreover, SPR facilitates easy access to the Indira Gandhi International Airport, Jaipur, Agra, and the Delhi-Mumbai Industrial Corridor, making it an ideal choice for businesses seeking well-connected locations for their operations.Ravi Aggarwal, Co-founder, and Managing Director, of Signature Global (India) Ltd., shared his insights on SPR's impact, saying, 'The Southern Peripheral Road has witnessed growth in recent years, thanks to its strategic location and connectivity. The SPR plays a crucial role in boosting the property prices in the region. SPR's potential as a thriving realty hub is unmatched, and this is best exemplified by the growing demand from discerning homebuyers seeking quality and convenience in sectors like sector 71 near SPR.'Robust residential and commercial developmentsThe allure of SPR lies not only in its connectivity but also in the residential and commercial projects. According to a Micro-Market Overview Report published by ANAROCK, the Southern Peripheral Road plays a role in boosting property prices in the region by providing uninterrupted connectivity across prime localities of Gurgaon. SPR's potential is further underscored by the presence of developers like DLF, Signature Global, Whiteland Corporation, Elan Group and Royal Green Realty have contributed to SPR's transformation into a coveted real estate hub with their offerings in and around the region.Similarly, Pankaj Pal, Managing Director, Whiteland Corporation stressed the positive influence of SPR on property appreciation, remarking, “The South Peripheral Road (SPR) in Gurgram is not just a thoroughfare but a thriving hub of residential and commercial excellence, where connectivity converges with luxury. As an arterial transit corridor for Delhi NCR, the South Peripheral Road has notably contributed towards the appreciation of luxury properties in the region. In the near perceivable future, SPR's trajectory as a coveted destination for real estate investment shines brighter than ever before.”Is SPR becoming Gurugram's premier commercial hub?SPR's future is looking bright, boosted by planned infrastructure like the upcoming metro line alongside the road. According to the Gurgaon-Manesar Masterplan, Sectors 71 and 73 are designated for commercial development, adding to SPR's appeal for institutional and commercial growth. The recent Cushman & Wakefield Q1 2024 Report highlighted Gurugram's dominance in the launch of high-end and luxury segments, particularly along SPR, capturing a robust 61 per cent share in Q1.Aman Sharma, Managing Director, Aarize Group, shared his optimism for SPR's future, stating, “SPR is poised to unlock new possibilities and set new standards for urban living and business excellence in Gurugram and beyond.”Realty hotspots beyond SPRSectors 77 and 76, positioned along the Southern Peripheral Road (SPR), have emerged as notable players in Gurugram's realty market, drawing attention due to their meticulously planned infrastructure, verdant surroundings, and proximity to commercial hotspots.Boasting close adjacency to prominent commercial centres such as DLF Corporate Greens, TCS, the forthcoming Amex Campus, and dedicated commercial sectors covering approximately 385 acres (Sectors 75 and 74A), this locale offers a myriad of conveniences.Notably, DLF recently unveiled DLF Privana South, a luxury high-rise development in sectors 76 and 77, selling out all 1,113 upscale residential units for Rs 7,200 crore within a mere 72-hour timeframe preceding its official launch.DLF Privana South forms an integral component of the expansive integrated township DLF Privana, sprawling across approximately 116 acres.
By: Leechhvee Roy
Best investment options: Are you a first jobber? Wondering where to invest in India's bustling financial markets? With a myriad of options available, making the right choice can feel overwhelming. But fret not! Experts shed light on top investment avenues for 2024, offering insights into low-risk options for stability, medium-risk investments for balanced growth, and high-risk opportunities for potential high returns.'Whether aiming for stability, moderate growth, or high returns, tailoring investment strategies to individual risk tolerances is key,' said Arpit Suri, CA and personal finance expert. Let's delve into some of the best investment options in India for 2024 across various risk profiles.Low-risk investmentsFor conservative investors prioritising capital preservation, low-risk options offer stability and predictable returns. Fixed deposits remain a cornerstone, providing a secure avenue with assured returns and minimal market exposure. The Public Provident Fund (PPF), backed by the government, stands out as a risk-free investment avenue, offering tax benefits and steady returns. Money market funds and treasury bills provide short-term investment opportunities with low risk and liquidity.All about FDFixed deposits (FDs) represent a popular investment avenue offered by banks and non-banking financial companies (NBFCs). Unlike regular savings accounts, FDs typically offer higher returns on the principal invested. Characterised by fixed tenures, FDs can range from short-term to long-term investments, with interest rates varying between institutions. However, investors should note that premature withdrawals may incur penalties, though some flexibility exists in emergencies.FDs are accessible through banks, post offices, and various NBFCs across India. Before opting for any FD scheme, investors are advised to compare interest rates, company reputation, and other relevant factors. Types of FDs available cater to diverse investment objectives. Company FDs, standard plans, and senior citizen schemes offer varying features, such as potentially higher returns and flexible tenure options for elderly investors.Tax-saving FDs serve investors aiming to reduce tax liabilities, with a maximum deposit limt of Rs 1.5 lakh per year and a lock-in period of 5 years. Other types include cumulative and non-cumulative FDs, offering compound or periodic interest payouts, respectively. Flexi FDs provide liquidity by allowing transfers between savings and FD accounts, while NRO and NRE FDs cater to non-resident Indians, facilitating repatriation of earnings.Interest rates on FDs vary amongst financial institutions and may offer preferential rates for senior citizens. While FDs offer assured returns and lower risk compared to market-linked instruments, they are subject to taxation. Interest earnings above Rs 40,000 undergo Tax Deducted at Source (TDS) and are reported as 'Income from Other Sources' in Income Tax Returns. Form 15G/H can be submitted to declare lower interest earnings or claim exemptions, particularly for tax-saving FDs, which offer tax benefits on the principal amount.Despite their advantages, FDs have limitations, including comparatively lower returns and restricted liquidity. However, they remain a suitable option for risk-averse investors seeking stable returns and principal preservation.All about PPFThe Public Provident Fund (PPF) is a favoured investment scheme amongst individuals seeking stable returns and low risk. Mandated by the government, PPF accounts offer guaranteed returns, shielding investors from market volatility.Key features of PPF include tax benefits under Section 80C, allowing investors to claim deductions of up to Rs 1.5 lakh annually. With a minimum investment amount of Rs 500 and a maximum of Rs 1.5 lakh per annum, PPF accounts have a tenure of 15 years, extendable by 5 years thereafter. Investors can avail loans against their PPF investments after the third year, up to 25 per cent of the total balance, with a maximum tenure of 36 months.Eligibility criteria include Indian citizenship for residents and minors, with non-resident Indians ineligible to open new accounts. Interest rates, currently at 7.1 per cent, are determined by the Central Government and subject to quarterly updates. Both offline and online procedures are available for opening PPF accounts, requiring KYC documents, PAN card, residential address proof, nominee declaration form, and passport-sized photograph.PPF offers tax exemptions on both principal investments and accrued interest, making it an attractive option for tax-efficient savings. Withdrawals are subject to a mandatory lock-in period of 15 years, with partial withdrawals permissible after the fifth year, up to 50 per cent of the total balance.All about money market fundsMoney market funds are a popular choice for investors seeking stable returns and high liquidity over short-term periods, typically up to one year. These funds invest in a variety of money market instruments, aiming to offer competitive returns while maintaining liquidity. Key instruments in the money market include Treasury Bills (T-Bills), Certificate of Deposit (CD), Repurchase Agreements (Repos), and Commercial Paper (CP). T-Bills, issued by the government, are considered very safe but offer lower returns compared to other instruments. CDs, offered by banks, are term deposits with no premature redemption option. Repos facilitate short-term loans between banks and the RBI, while CPs are short-term promissory notes issued by creditworthy entities.Investors with lower risk tolerance and a short-term investment horizon typically opt for these funds, especially those with surplus cash seeking better returns than savings accounts. Factors to consider before investing include risks and returns, expense ratio, and alignment with investment plans. While money market funds offer better returns than savings accounts, they carry risks like interest rates and credit risk. Expense ratio, representing management fees, should be considered, with lower ratios maximising returns. Investors should also be mindful of taxation rules, with short-term gains taxed as per income tax slabs and long-term gains taxed at 20 per cent with indexation benefits.Medium-risk investmentsInvestors seeking a balance between risk and reward can explore medium-risk options offering potentially higher returns. Balanced mutual funds provide exposure to both equities and fixed income, mitigating risk through diversification. Debt funds offer stable returns by investing in bonds and treasury bills, ideal for investors seeking steady income. Dividend-paying stocks and exchange-traded funds (ETFs) offer opportunities for growth while maintaining a moderate risk profile. Corporate bonds present another avenue, allowing investors to tap into the corporate debt market for relatively higher returns.All about balanced fundsBalanced funds, a type of hybrid fund, offer investors a diversified portfolio by investing in both debt and equity segments. Typically, these funds allocate around 40-60 per cent to equities, providing a balance between capital appreciation and risk mitigation. They cater to investors seeking a mix of capital appreciation, income generation, and low-risk investment options. The equity component helps prevent erosion of purchasing power and targets dividends from larger companies, while the debt segment, comprising bonds and securities, offers stability and income streams. Fund managers ensure portfolio rebalancing to manage market volatility effectively. Investors can access balanced funds through fund houses via online platforms, enjoying features like expert recommendations and paperless sign-up.Taxation rules for balanced mutual funds vary based on their equity or debt orientation. For equity-oriented funds, which allocate more than 65 per cent to equities, short-term capital gains (STCG) are taxed at 15 per cent. Long-term capital gains (LTCG) exceeding Rs 1 lakh are taxed at 10 per cent for holding periods over 12 months. Debt-oriented funds, on the other hand, incur a 20 per cent tax on short-term capital gains with indexation benefits, and LTCG taxation applies only after holding for more than 36 months.All about debt fundsDebt funds are a significant investment avenue for those seeking stable returns with lower risk compared to equity investments. These funds primarily invest in fixed-income securities like treasury bills, corporate bonds, and government securities, offering investors predetermined interest rates and maturity dates. Due to their diversified nature, debt funds provide stability to investors, making them suitable for low-risk and short to medium-term investment strategies.However, they are not immune to risks, including credit risk and liquidity risk. Debt funds come in various types, such as liquid funds and long-duration funds, catering to different investment preferences. Investors can access debt funds through asset management companies or online platforms, benefiting from professional expertise, diverse investment options, and liquidity. Taxation rules for debt funds vary based on the holding period, with short-term capital gains taxed according to the income tax slab and long-term capital gains taxed at a flat rate of 20 per cent with indexation benefits.All about high dividend yield stocksHigh dividend yield stocks present an attractive option for investors seeking steady income alongside potential growth. Dividends, distributed by companies from their earnings, provide investors with a portion of profits. Calculated as a ratio of annual dividends to share price, dividend yield reflects the income investors receive relative to their investment. High dividend yield stocks typically outperform benchmarks in terms of dividend yield, making them appealing for those desiring regular earnings.These stocks offer not only consistent income but also the potential for share price appreciation over time. However, investors should consider factors such as dividend consistency, growth, and payout ratio. While high yield dividend stocks offer benefits like regular earnings and less susceptibility to economic cycles, they also come with risks. Market fluctuations can lead to reduced dividends or reinvestment of profits by companies, potentially impacting stock prices and investor returns. Despite these risks, high dividend yield stocks remain a viable option for investors looking to balance income generation with growth potential.All about ETFsExchange Traded Funds (ETFs) are investment funds that offer a blend of the diversification benefits of mutual funds with the simplicity of trading individual equities. They typically consist of a collection of investments such as stocks or bonds and allow investors to access a diversified portfolio with lower fees compared to other fund types. ETFs are traded on exchanges throughout the day, providing investors with flexibility in buying and selling.There are various types of ETFs available, including index ETFs, fixed income ETFs, sector-specific ETFs, commodity ETFs, leveraged ETFs, actively managed ETFs, and more. Investing in ETFs involves opening a brokerage account, selecting the desired ETF, and transferring funds to purchase shares. While ETFs offer advantages such as intraday trading, transparency, tax efficiency, and order flexibility, there are also risks to consider, including trading costs, bid-ask spreads, tracking errors, and settlement delays. Overall, ETFs provide investors with a versatile and accessible tool for building diversified investment portfolios.High-risk investmentsFor those comfortable with higher volatility in pursuit of potentially significant returns, high-risk options may be enticing. Direct equities offer ownership in companies but come with market fluctuations and require active management. Equity mutual funds provide diversified exposure to stocks but carry market risk, suitable for experienced investors. Forex trading presents opportunities in currency markets but requires expertise and risk management. Hedge funds, though offering potentially high returns, demand thorough due diligence and risk assessment before investment.All about direct equity investment Direct equity investment involves purchasing shares of a company directly in the stock market, granting partial ownership and voting rights. It demands a certain level of understanding of market dynamics and company fundamentals. Investors must assess risks such as market fluctuations, company performance, liquidity issues, taxation changes, regulatory shifts, interest rates, inflation, credit defaults, and social/political factors.While offering the potential for high returns and straightforward investment processes, direct equity also entails significant volatility and performance uncertainties. It's essential for investors to evaluate their risk tolerance and market expertise before delving into direct equity, as well as to consider long-term investment horizons for optimal returns.All about equity mutual fundsEquity Mutual Funds have become a preferred investment tool for many investors due to their potential for greater returns compared to traditional options like term deposits. These funds invest in shares of different companies, aiming to diversify across sectors and market capitalisations to mitigate risks. There are various types of equity funds categorised based on investment strategy, market capitalisation, tax treatment, and investment style.Thematic or sectoral funds focus on specific themes or sectors, while focused equity funds limit investments to a smaller number of stocks. Contra equity funds adopt a contrarian strategy, investing in underperforming stocks with the expectation of long-term recovery. Market capitalisation-based categorisation includes funds targeting specific market cap ranges.Equity Linked Savings Schemes (ELSS) offer tax benefits under Section 80C, while other equity funds are subject to capital gains tax. Active funds are actively managed, whereas passive funds track market indices. Equity mutual funds typically invest more than 60 per cent of assets in equities, with the balance in debt securities or money market instruments. New investors should consider their financial goals and risk tolerance, while seasoned investors can leverage their market knowledge to make informed decisions.All about forex tradingForex trading, also known as foreign exchange trading, involves the exchange of currencies between individuals, businesses, and central banks with the primary goal of generating profit. This global market operates over-the-counter (OTC), directly between parties, across major trading hubs in different time zones like London, New York, Sydney, and Tokyo, enabling 24-hour trading five days a week.The market encompasses various types, including spot, forward, and future forex markets, each with distinct characteristics and settlement procedures. Understanding key terms like currency pairs, base and quote currencies, bid-ask spreads, pips, lots, leverage, and margin is crucial for effective trading. Traders employ diverse strategies such as scalp, swing, day, and position trades, each suited to different timeframes and objectives.Price movements in forex are influenced by factors like central bank actions, economic data, market sentiment, and credit ratings. Currency pairs are categorised as major, minor, exotics, and regional, reflecting different market dynamics. While forex trading offers high liquidity, accessibility, and leverage, it also carries risks due to market volatility, leverage, and unpredictable price movements. Pros include liquidity, accessibility, and leverage, while cons encompass regulatory concerns, decentralised nature, and inherent risks, underscoring the need for prudent risk management in forex trading.All about hedge fundsHedge funds represent a unique form of investment, characterised by pooled funds from institutional or accredited investors, often targeting affluent clientele due to high minimum investment requirements. In India, these funds, categorised under Alternative Investment Funds (AIFs) - Category III, operate outside the purview of SEBI registration and NAV disclosure regulations.They employ diverse trading techniques, spanning equities, debt, and derivatives like futures and options, aiming for diversification and potentially high returns. Hedge funds encompass various types, including Global Macro, Relative Value, Activist, and Equity Hedge funds, each employing distinct strategies to capitalise on market opportunities.Despite their potential for high returns, hedge funds carry significant risks, exacerbated by minimal regulation and high minimum investment thresholds, often exceeding Rs 1 crore. Furthermore, tax implications at the fund level can impact investor returns. Consequently, investing in hedge funds requires careful consideration of risk tolerance, financial capacity, and alignment with investment goals, alongside thorough research and potentially the guidance of experienced fund managers. While savings provide a foundation for financial security, investments play a crucial role in wealth accumulation and long-term planning. Individuals must assess their risk tolerance and financial goals.Whether opting for low, medium, or high-risk investments, diversification and informed decision-making are paramount. By aligning investments with individual risk profiles and objectives, investors can chart a path towards financial stability and growth in the years ahead.
By: Leechhvee Roy
Warehousing market transformation: With e-commerce and online services becoming an integral part of everyone's life, the demand for online services has gone up like never before, fuelling the exponential growth of warehouses where things are stacked up for seamless delivery.It was way back in 2022 when e-commerce and online services fuelled the growth of the warehousing sector post-pandemic. The pandemic not only made life centred around e-commerce and online services but also kept life riding on the back of digital services. But the phenomenal growth is fizzling out at least, which was driven by the boom in the e-commerce space. Some analysts are of the view that the warehouse market is currently experiencing unprecedented demand, outpacing supply by 1.4 times in the first half of 2023.However, in an exclusive interaction with Republic Business, Mudassir Zaidi, Executive Director – North, Knight Frank India shed light on the transformative journey of the warehousing market. He highlighted how significant changes, such as the introduction of GST, solar, DST, and IR, have reshaped warehousing operations.He stressed the evolution of warehousing from traditional go-downs to sophisticated Grade A structures, attracting both domestic and global players. Zaidi underscored the influx of investment in the sector, leading to rapid expansion and acquisition of warehousing spaces.'We've reached a stage where a lot of it has been acquired, is being built, is now being looked at for consumption,' Zaidi said, indicating a shift towards utilisation rather than expansion.However, he pointed out that the market is now experiencing a phase of consolidation and a slowdown in new inventory additions. This period is characterised by the absorption of existing supply, reorganisation, and consolidation efforts. 'We are seeing some stagnation there above. We are seeing some consolidation and further expansions will happen,' Zaidi elaborated, expressing confidence in the sector's resilience despite current challenges.Resilience amidst uncertaintyThe Indian warehousing sector has demonstrated resilience amidst the uncertainties of the global economic scenario, maintaining a steady trajectory since FY 2022. Warehousing demand peaked at 4.8 million sq mt (51.3 million sq ft) in FY 2022, rebounding strongly from the lows witnessed during the pandemic period. This heightened demand persisted into the subsequent year, despite a notable drop in demand from e-commerce entities.With the e-commerce segment historically serving as a major catalyst for transaction volumes, the market witnessed a shift in dynamics as manufacturing sector companies stepped in to fill the void. This diversification in demand sources underscores the sector's adaptability to changing market forces.However, the momentum witnessed in previous years saw a temporary slowdown in the first half of FY 2024 (April to September 2023). Transacted volumes amounted to 2.1 million sq mt (23 million sq ft), marking a 10 per cent decline compared to the corresponding period in FY 2023. Grade A spaces accounted for the majority of transactions, indicating a continued preference for quality infrastructure. Trending industry shiftsThe manufacturing sector outpaced the 3PL (third-party logistics) sector in transaction volumes during H1 FY 2024. Companies operating in the automotive, energy, and chemical sectors constituted a substantial portion of the total transacted volume, signifying the growing importance of manufacturing investments in the country. Factors such as the decentralisation of manufacturing capacity from China and government initiatives like 'Make in India' and the Production Linked Incentive (PLI) scheme have contributed to this trend.Meanwhile, 3PL sector companies continued to maintain their relevance, comprising 30 per cent of the transaction volume. Other sectors recorded minor contributions, highlighting the diversified nature of demand within the market.Conversely, the e-commerce sector experienced a slowdown attributed to previous expansion efforts during the pandemic. Major players in the sector have shifted their focus towards profitability, resulting in subdued leasing activity. Large-format captive/owned spaces, serving as regional hubs for e-commerce giants, have also contributed to this trend, with their leasing activities not accounted for in market demand assessments.Warehousing Post-GSTZaidi stressed that pre-GST warehousing strategies were primarily driven by tax efficiency, with each state's tax laws playing a crucial role. However, with the advent of GST, which unified tax jurisdiction across India, logistical efficiency emerged as a paramount consideration in warehousing location decisions.Despite these challenges, Zaidi expressed optimism about the prospects of the warehousing sector, anticipating further consolidation and expansion.Buoyant outlookExperts anticipate a buoyant outlook for India's warehousing sector, as the 3PL industry continues to play a pivotal role while manufacturing experiences significant growth. Despite cautious moves by the e-commerce sector, occupier demand remains resilient.The global shift of manufacturing hubs towards India and other Asian nations, alongside India's focus on enhancing its manufacturing capabilities, promises sustained growth in the warehousing domain.Although global economic and geopolitical factors may exert influence, India's robust fiscal position and resilient economy are expected to boost stability and growth potential in the warehousing market throughout fiscal year 2024, according to experts.
By: Leechhvee Roy
Clicks to cash: Social media influencers, as disclosed by the influencers themselves, can earn as much as Rs 3.5 lakh per post, enjoying a lifestyle that rivals, and in some cases, surpasses that of many corporate employees.According to Statista, the influencer marketing industry is projected to reach Rs 2,800 crore by 2026. Moreover, a collaborative report by EY and Collective Artists Network’s Big Bang Social suggests an even more substantial growth, with influencer marketing in India expected to expand to Rs 3,375 crore by the same year. Despite the slight difference in the numbers, both reports highlight a notable rise in the field's potential in India.Republic Business gathered insights from prominent influencers shedding light on the industry's evolution, earnings, collaboration opportunities, and campaign success metrics.'Follower count and niche play a significant role in influencer earnings. Creators with 200k to 1 million followers typically secure brand deals worth Rs 1.5 lakh to Rs 3.5 lakh,' Simran Balar Jain, Content Creator and Co-founder, UnBound told Republic.Influence on the riseIn 2022, the Indian influencer marketing industry was valued at over Rs 1,200 crore and it was projected to grow at an annual rate of 25 per cent over the next five years.'Influencers have evolved into pivotal channels for brands, fostering genuine connections with their audiences through engaging content. They influence consumer purchasing decisions and product research across various sectors, including food, fashion, jewellery, and mobile/electronics,' Anushka Rathod, a fin-fluencer told Republic Business.Short-form videos like reels have emerged as the most popular content format, offering influencers a platform to deliver concise and impactful messages to their followers.'Additionally, live-streaming has gained significant momentum, leading e-commerce giants like Amazon and Flipkart to introduce live commerce features on their platforms,' she emphasised.Brands and the art of picking influencersThe EY report stresses that with an expected 740 million active smartphones in India by 2030, three out of four brand strategies should include influencer marketing. Brands are all about engagement rates and quality when picking influencers, seeing how important genuine connections are to reach the right audience.In 2024, influencer marketing continues to solidify its position as a cornerstone of brand strategies, with a notable 75 per cent of brands integrating it into their marketing approach. More than half of these brands, specifically 56 per cent, are allocating over 2 per cent of their budgets towards influencer marketing initiatives.Furthermore, a substantial 70 per cent of brands intend to either maintain or increase their investment in influencer marketing this year, with approximately half planning to boost their budgets by up to 10 per cent.Income sources for influencersAnushka Rathod revealed that most of her income comes from social media activities, given her full-time commitment to the field. She also generates income by leveraging her network to promote other products and services, creating a diversified revenue stream.Shift in trendsIn recent years, there has been a shift in the types of brands collaborating with influencers. At the start of 2021-2022, start-ups dominated the influencer marketing scene. However, the field has evolved, with traditional organisations increasingly recognising the impact of social media marketing. Well-funded start-ups have also notably increased their spending on social media marketing strategies.Demonstrating confidence in their agency partnerships, 77 per cent of brands believe their agencies possess the necessary capabilities to execute influencer marketing campaigns effectively.In terms of compensation models, a majority of brands, accounting for 71 per cent, opt for fixed fee arrangements with influencers, while an increasing 29 per cent are exploring performance-based models to enhance influencer accountability.Measuring influencer campaign successCreators highlighted the importance of tailoring key performance indicators (KPIs) to the specific goals of each brand collaboration. For branding-focused campaigns, they monitor impressions, views, and engagement on their content. In contrast, campaigns aimed at conversion are evaluated based on metrics such as link clicks and downloads.Aditya Jangid, Founder, Voohoo Live provided additional insights into influencer earnings. He mentioned that earnings can vary significantly based on factors such as follower count and niche.'The sources of income for social influencers have grown beyond endorsements and paid content. Many influencers have dabbled in producing their own goods, including apparel, e-books, and online courses,' Jangid said.'Some influencers have tapped into the affiliate marketing sector to make money by endorsing goods they genuinely believe in. Influencers have been able to create stable income streams and develop their personal brands considering this entrepreneurial mindset,' he further added.'For a creator it's essential to diversify income streams beyond brand deals, such as merchandise sales, affiliate marketing, and content creation,' Finfluencer Rathod said.Financial realitiesThe compensation structure for influencer partnerships often includes fees for sponsored posts, affiliate commissions, and product exchanges. Long-term partnerships may involve monthly retainers or performance-based bonuses.'Maintaining a social media presence and influencer career entails expenses such as equipment, software, and potentially outsourcing tasks like content creation or management. Creators also need to consider taxes and legal fees as part of their financial responsibilities,' Balar highlighted.On the influencer side, the field remains lucrative, as evidenced by 77 per cent reporting income growth in the past two years, with an overwhelming 86 per cent anticipating a further double-digit increase in their income over the next two years.Avenues of monetising influenceInfluencers have various options to monetise their influence, including sponsored posts, affiliate marketing, brand ambassadorships, product reviews, creating and selling their own products, earnings from social platforms, paid speaking engagements, offering consulting services, selling advertising space, and creating sponsored content featuring brands.Earnings on different social media platformsFacebook: To be eligible for monetisation, creators should have a Page with a minimum of 10,000 followers for live videos or 5,000 for video on-demand and maintain 5 active videos on their Page.YouTube: To begin monetising on YouTube, creators need a minimum of 1,000 subscribers, along with either 4,000 public watch hours on long-form videos in the last 365 days or 10 million public Shorts views in the last 90 days.Twitter: Twitter introduced a subscription model where influencers can offer exclusive content to subscribers, providing a new avenue for monetisation.Instagram: Instagram remains a lucrative platform for influencers. Revenue depends on factors like follower count, engagement rates, niche, and posting frequency, with influencers potentially making Rs 5,000 to Rs 3 lakhs or more per post.'The world of social media influencers in India is not just about likes and followers; it's a thriving business with multiple revenue streams, offering influencers a path to fame and significant financial rewards,' Rathod emphasised.
By: Leechhvee Roy
While traditional options like jewellery and coins remain popular, digital alternatives such as Gold ETFs offer a modern and convenient way to invest in Dhanteras 2024. With rising interest in these exchange-traded funds, they could be the smart way to add gold to your portfolio this festival.