December 21: Renowned beauty brand Oriflame witnessed 25% increased number of sales partners in India during 2020. This was told by a top company official. Frederic Widell, Oriflame VP, Head of South Asia and MD of India said that the company is all expected to cover-up all the losses of the company in the second quarter impacted due to covid-19 spread. He also told that the business had recorded higher growth in sales in the third and fourth quarter.
With this, the VP claimed that the beauty brand is planning expansion in the coming few months and would be investing in the country. This decision was made as India is among the top 5 on the global level. Oriflame also expects that 2020 turnover of the company might be equivalent or slightly higher than the par of the previous year. Further, he also told that the company has a very good year with over 25% growth in sales partner whom they call sales force. He claimed that they had good growth this year.
Widell also claimed that Oriflame has witnessed double-digit growth in sales for the last 3 to 4 months. Broadly, the sales force of the company is extracted from the females as the company sells mainly cosmetic products. As told by the VP, 70% sales force is received via females while the remaining 30% is from the males.
“We have good 2020, both from point of view of sales and profitability. Despite an enormous drop in sales in the second quarter, we expect that we would be on par or a little bit higher than the last year. We have grown higher in Q3 and Q4 to cover the disastrous Q2. Purchase willingness is down a little bit as people hold cash in uncertain times. We have seen a slight decline in the basket, but since we have a growth in our sales forces, we still see a growth in our overall turnover.” Widell told.
CCI approves Flipkart’s acquisition of ABFRL minority stakes
22 January: Flipkart Investments Private Limited had requested purchase of a minority stake in Aditya Birla Fashion and Retail Limited which was approved by the Competition Commission of India. FIPL proposed the acquisition of 7.8% equity shares of the public limited company ABFRL.
The proposal was drafted in October 2020 which mentions that by way of subscription of equity shares, FIPL is to invest a total of Rs. 1,500 crore for minority shareholding of 7.8%, on a fully diluted basis in ABFRL.
Sharing their take of the website, ABFRL said, “In addition to approval of shareholders by way of Postal Ballot (received on November 22, 2020), the issue was subject to regulatory approvals and completion of customary closing conditions under the Investment Agreement. In this regard, we wish to inform you that CCI has accorded its approval to Flipkart for its proposed acquisition of 7.8 per cent equity stake in the company on a fully diluted basis vide its approval letter dated January 20, 2021.”
Flipkart Investments Private Limited is a newly incorporated company and a subsidiary, wholly owned by Flipkart Private Limited.
ABFRL is a part of Aditya Birla conglomerate and is a public limited company incorporated in India. The company is involved in manufacturing and retailing of branded apparels, accessories, and footwear. The services are provided through their retail stores across India. Other than this, they have multi-brand outlets, departmental stores, e-commerce platforms as well.
Surat’s polished diamond exports improves; overall rise by 41%
20 January: With coronavirus impacting the overall diamond polishing industry in Surat, December month witnessed a significant boost in the polished diamond exports.
The total polished diamond exports rose by 41% year-on-year in December in the previous year as the total stood on Rs. 12,692 crore. Whereas the export count was Rs. 8,000 crore in December of 2019. The data was cited by the Gem and Jewellery Export Promotion Council and reported by TNN.
Surat’s diamond industry was specifically hit hard during the pandemic as many workers fell ill forcing the polishing units to be shut temporarily. The exports of polishing diamonds decreased by 30% during April to November time period in 2020, however, increasing by 158% towards the end of the unforgettable year.
The export increases were fueled ahead of the holiday seasons reportedly in China and the United States. Both are the main destinations for India’s exported polished diamonds. Other than this, a decreasing covid restriction in India has also contributed towards the increased demand.
This gave a ray of hope to the industry as the boost was much-needed after covid-19 took over the businesses and their operations. Since the pandemic, this is the first time that the industry witnessed a year-to-year increase giving a confidence boost in the sector.
Textile industry might get stable by 2022 financial year, states ICRA
Textile industry, January: 2022 will be seeing a stabilised Indian textile sector along with the cotton spinning and apparel exports segment faring ‘especially well’, this was Consumer Ratings Business ICRA‘s confidence. The confidence came to light when it said that the cotton spinning and apparel exports could be increased by 15% to 20% in the financial year of 2022.
Further, fabrics could go up by between 30% to 35% and domestic apparel segments could grow by 35% to 40%. At the same time, these segments are expected to face steep declines in the 2021 financial year.
With the rolling out of the vaccinations in the country leading to a rise in the positive consumer behaviour, ICRA is confident the industry will see a silver lining in the coming time. Economies are opening and a surge can be witnessed in the domestic and export demand. With this, the textile sector can expect the positive sentiment of the third quarter of the 2021 financial year to continue in the upcoming quarters.
Talking about the findings, Jayanta Roy serving as ICRA’s senior vice president and group head for the Corporate Sector Ratings was quoted as saying to Press Trust of India, “As demand continues to normalise in domestic as well as export markets, we expect the textile sector performance to recover to pre-Covid levels in FY2022 at a broader level. Accordingly, ICRA’s textiles sector outlook for FY2022 is stable.”
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