Monday, July 25, 2016

Scotch Whiskey in India...Hic!

In spite of more and more states joining the dry band wagon the consumption of liquor in India is on the rise. The rich and no so rich are all game for whisky more often as social trending rather than a habit. One of the most expensive and desired type of alcohol in India is the scotch whisky. Apart from being heavenly smooth some types contain a smoky flavor thanks to the use of peat mass for firing in the distilleries. 

The malted barley mash is distilled, brewed and matured using the water and peaty in the peat bogs of Scotland (Islay) this liquor is one of the most pricey in the World.  In India scotch is a prized catch. A status symbol  unparalleled. Most popular of brands in the country are as follows:

Johnnie Walker Red/Black/Blue Label Scotch - Diageo
Chival Regal - Pernord Ricard
Glenlivet Single Malt

Many more brands are popular besides those mentioned above. But presumably the above brands have a higher market consumption than the rest. 

The battle hardened brands are by Diageo and Pernord Recard and the stiff competition amidst them is talk of the industry. Though the figures are highly contentious Chival is definitely tightening the noose over its rival the famous Johnnie Walker stuff.    

Sunday, July 10, 2016

Steel No More Steel

After a lull in steel prices the market seems to be picking up and a brighter forecast spells steady rise in the segment. This is also the same with iron ore partly due to rise in demand from Chinese market.The demand from China seems to be improving steadily as demands arise from its infrastructure development projects. 

There has been improvement in steel demands in US and Europe as well. The imposition of anti dumping duty has also benefited concerns like Areclor Mittal.  

But the biggest concern in news is the Tata's Steel concerns in UK. Due to hurdles regarding the pension fund which has created a liability of seven hundred million pounds it seems sell off is unlikely. A potential strategic partnership seems to be a better bet for the ailing business.  But this is a tardy process and is at a preliminary stage.  Another recourse is to cut costs as much as possible. How this will be brought is not clear.     

The problem has arisen due to low prices in the steel market. This was in making has the World was oversupplied with steel. The China driven demand faced a stand off due to slack in its industries. To make matters worse the local production of Chinese arose significantly. Excess production was dumped outside the country triggering stiff competition from global manufacturers. 

The rising prices has raised some  hopes till the Chinese concerns raise their output to offset the gain in prices. 

Wednesday, July 6, 2016

Ringing Phone - Cell Phone for $4

Ringing Bells is a company based in New Delhi that promises to sell Android phones for Rs.251. The Indian startup is selling the phones at a loss and hopes for Government subsidy to aid the project. The aim of Ringing Bells is to spread the mobile phones all over the country especially cover those who can ill afford these devices. Aiming at creating a communication revolution in India it plans to sell a number of products many of which will be sold at a profit.     

As per the company almost 200000 cell phones are ready to be shipped all across the Nation. This despite that many players find the price of the smartphone incredible. Is there a catch somewhere the owner of the company  Mr. Goel strongly denies it. 

With a market scaling more than one billion subscribers success is a cheese and a big one at that. The gadget feature almost all that big brands promise despite the price. It is tie up with some companies for pre-installed apps which is suppose to bring the cost down since the company does not have any manufacturing setup.    

In absence of manufacturing set up Ringing Bells is importing knocked down kits from Taiwan. But the critics are still in disbelief at the incredible pricing is this a publicity gimmick or what?

Tuesday, July 5, 2016

Post Brexit Outcome & Adjustments Next

What happens next is a major question that the Brits face post exit from the European Union. Instability and adjustment are the imperative that the economy may face. The pound sterling has already seen a downfall and banks a easing regulations for lending subsequently.  This after Bank of England has infused about 150 pounds into the National economy.

After man years withing the EU Britain decided to leave. This decision was due to immigration policies which the people of UK did not favor. This was evident post voting. Apart from economic uncertainty there was significant political turmoil especially within the Conservative Party amidst those who favored separation. The major opposition, Labor Party experienced some trouble as well.    

Twenty eight countries in Europe are tied to Article fifty after the departure procedure are confirmed there will twenty seven left. UK will join Norway at the independent window. But only after the formality is commenced i.e letter to European Council of intent to leave will the uncertainty evaporated. The effect so far has be catastrophic to some extant.            

In wake of Scotland's desire to remain within EU things fallen into the quagmire of total uncertainty since affirmative would be required from the Scottish Parliament albeit blocking cannot prevent the separation.