TMS Ep204: Tiruppur textile, Pallonji Mistry, liquor stocks, tokenisation

After agriculture, the textiles and apparel industry is the second-largest job provider in India, directly employing about 45 million people. However, its full potential remains untapped, as India stands sixth in garment exports, behind China, Bangladesh, Vietnam, Cambodia and Sri Lanka. But there is a bright spot, almost at the centre of the east and west coasts. The small town of Tiruppur -- also famous as ‘Dollor Town’ -- contributes about 90% of knit-wear exports from India. The government recently said that it would create 75 textile hubs across India in the image of the one at Tiruppur. We explain the significance of Tiruppur textile hub and how the government can get started with its ambitious goal

About 1,300 km away from Tirupur, in a quiet home in South Mumbai, a 93-year-old man breathed his last in his sleep early Tuesday morning. Soon, Prime Minister Narendra Modi hailed his “monumental contribution” to the world of commerce and industry. Pallonji Mistry’s quiet demise was in tune with his reclusive nature. Mistry, who started assisting his father at the young age of 18, diversified the Shapoorji Pallonji Group, took it beyond Indian borders and built some of the country’s iconic buildings back home. 

According to reports, Mumbai’s iconic Taj Mahal Palace was constructed and handed over ahead of the schedule and under the allotted budget. Pallonji Mistry indeed leaves behind a rich legacy. Meanwhile, moving on to markets, shares of liquor companies have tumbled up to 32% so far in calendar year 2022, as soaring raw material cost and tepid demand have hit breweries and distilleries. However, with plateauing commodity prices, increased out-of-home consumption, and select state governments reducing taxes, analysts believe the worst may be behind the sector. Our next report takes a dive into how the Ukraine-Russia war has impacted the sector, and whether investors should begin nibbling related stocks after the recent correction?

RBI seems firm on implementing tokenisation, which is meant to make your debit or credit card transactions more secure -- whether you offload stocks on your laptop, or purchase a shirt online. The deadline to implement it has now been pushed by three months to September 30 after requests from industry groups. In this episode of the podcast we explain what tokenisation is and more.