Writing Room
House of Ocean Dial Series – HOODstock: Kajaria Ceramics
Picture the multiple challenges that are faced when a family wants to tile their kitchen or bathroom in India. As a customer, the buying experience can be an infuriating challenge. Successfully navigating a sector where 55% of the market operates in the informal sector where tax evasion, price cutting, and poor customer service are the norm is no picnic.
Investing in pandemic times
Managing a small and mid-cap portfolio over the last six months has been one of the most challenging periods in my 27 year career. Echoing Demonetisation1, on 24th March the Indian Government made an overnight announcement to lockdown the entire country for three weeks.
India: 2020 vs 2010
Where was India in 2010?
A decade ago a much higher nominal GDP growth rate (driven by consumption) was the norm, but an investor sitting in 2010 would have had cause to hesitate before allocating money to India. The government’s fiscal deficit was 6.5% of GDP, an 11 year high, and inflation was double digits with real interest rates negative and rising. A weak coalition government was unable to pass legislation and was facing the onset of high profile corruption scandals. 2010 also coincided with India’s worst ranking in the World Bank’s Ease of Doing Business Index at 139th out of 190 countries.