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Cost Of Data Breach

10,000

What is it? The number of products that have faced sanctions in the ongoing trade war, primarily between US and China.

Why it’s important? It started with a mere 18 products in January when US imposed tariffs on solar panels and washing machine products, and shows how trade wars can escalate fast. European Union, Canada and Mexico also joined the fray. Among other things, it has hit China’s currencygold prices, and could hit US tech sector.

Tell me more:  In the latest salvo, US proposed more tariffs on $200 billion in Chinese products, and China said it would retaliate.

 

$3.1 billion
 

What is it?The combined value of 19 new planes ordered by Delhi-headquartered Vistara, a joint venture between Singapore Airlines and Tata Sons

Why is it important?It will help expand the fleet of the airline which is expected to launch its international service later this year. Of the 19, it has ordered from 13 Airbus and six from Boeing, making a departure from its earlier Airbus-only fleet. Some airlines prefer to stick to a single manufacturer to keep the costs low. Singapore Airlines has a mix of both. Vistara has ordered six Boeing 787-9 Dreamliners, to be used for international routes.

Tell me more: Vistara has a market share of about 4%, connecting 22 destinations with 800 weekly flights, in a highly competitive market ledby Indigo, Jet Airways and Spicejet.

 

592,800 barrels per day

What is it?India’s oil imports from Iran in June.

Why is it important? It’s down 16% from May, even as the US imposed sanctions on Iran. US wants to push Iran’s oil exports to zero, till it complies with a dozen conditions including disclosure of its nuclear programme and release of all US citizens held in the country. India has said it will take a decision based on its own national interest.

Tell me more: Iran is OPEC’s third largest oil producer after Saudi Arabia and Iraq; and India is Iran’s second largest oil importer after China. Some analysts believe US sanctions on Iran will backfire as higher oil prices.

 

$ 1.77 million

What is it?The average cost of data breach in India, according to a report by IBM security and Ponemon Institute.

Why is it important? It is up 7.9% from 2017, even though compared globally, it’s the lowest in India. As India journeys into digital world – driven by cheaper data costs and mobile phones, and competition among companies to offer digital products – it exposes itself more to data breaches. IBM said India saw a rise both in the number and in the sophistication of breaches.

Tell me more: While a mega breach – where 1 million to 50 million records get compromised – could cost anywhere between $40 million to $300 million, on average it costs about $3 million. The cost is the highest in the US at $7.91 million.

 

16

What is it?Number of people killed in Manipur and Uttarakhand in rain related incidents.

Why is it important? Highlights the risks from natural disasters. Seven persons lost their lives in Dehradun, Uttarakhand after their houses collapsed in heavy rains following a cloudburst. In Manipur, landslides set off by rains killed eight children and a woman.

Tell me more: India is not alone. In Japan, landslides and flash flooding caused by rains have already claimed 179 lives, its worst natural disaster since Fukushima earthquake in 2011.

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How Amazon.com is better positioned to win the battle against Walmart

Background: Walmart Inc, the world’s largest retailer, took 77% equity stake in Flipkart, an Indian eCommerce company, on Wednesday. With Amazon.com establishing its presence organically, the fight to capture the Indian market has now shrunk to these two giants. So who has the better chance of winning this war?

Walmart is the world’s largest retailer, but its online rival, Amazon.com has better war chest when it comes to winning the Indian eCommerce market. Amazon’s cash at hand is thrice that of Walmart’s, though the online giant’s sale is only 36% of Walmart’s topline. Interestingly, Amazon.com has bigger long term debt than Walmart, but its interest cost is 50% lower than the offline retailer. Much more than cash at hand, Amazon’s valuation is thrice that of Walmart’s that gives US online retailer edge to acquire firms through non-cash transactions.

This table gives a preview of where the companies stand:

 

Walmart Inc. Amazon.Com, Inc
Cash 6.7 20.5
Sales 482 177.8
Net profit 15.08 3.03
Earnings Per Share (EPS) 3207 6.32
Market capitalization 252.35 776.43
Long term debt 36.7 45.6
Interest expenses 1.9 0.848

All in $ billion, except EPS
All numbers, except market capitalization, are December 2017.
Market capitalization is as May 9, 2018
Source: Company websites, NYSE

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Profiling: Hindi Vs Non Hindi Markets

One way to understand the market is through the language spoken by consumers. And in India, it can be broadly divided into Hindi and non-Hindi speaking population. The data can be further sliced to look at differences between Hindi speaking states.

For example, Chandigarh is vastly different from Patna in all aspects – demographics to economic affluence. This article is an attempt to understand the major differences between the Hindi and non-Hindi speaking markets through three parameters – urbanisation, education and female population. In the next article, we’ll look at what people own in these two markets.

We have considered 14 states as Hindi speaking states, mainly based on percentage of people who can talk in Hindi as per 2001 Census data (Yes, that’s the last time Census released data on languages spoken). Marathi is the mother tongue for Maharashtra, but they would come under Hindi speaking state because a large proportion of the population can talk in Hindi. A detailed table can be seen at the end of this article.

What can these indicators speak of:
Urbanisation – more non-farm employment opportunities, higher share of service sector jobs, more opportunities to move ahead economically
Literacy – ability to read and understand issues and take an informed decision.
Share of female population – how are women treated in the society.

In terms of population, Hindi speaking states account for nearly two-thirds of India’s population. But in other parameters – urbanisation, literacy and share of female population – they lag behind.

State-wise data on the parameters used in the analysis, see the map below.

In the second-part of the series in understanding Hindi vs Non-Hindi speaking markets, we will look at affluence as measured by ownership of assets like two or four wheelers etc. For more data, please check HowIndiaLives.com, India’s most granular database covering all the 715,000 geographical locations.

(John is co-founder of How India Lives)

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Are Promoters Cashing Out?

 

A larger share of IPOs has gone to promoters and investors than to the companies this year. Several LEDs bulb brands are found to be non-compliant. Job growth is not keeping pace with that GDP’s.

 

76%

What is it? The percentage of LED (light emitting diode) bulb brands, besides 70% of LED downlighter brands, sold across 200 outlets in India that were found to be non-compliant with the government’s consumer safety standards, according to a survey by market research firm Nielsen.

Why is it important? The report says this would impact energy efficiency in India, which is looking to replace over 200 million incandescent light bulbs with LED light bulbs under the Ujala scheme. This would pose safety hazards for consumers besides causing losses to the government as some of these brands are manufactured illegally and sold. The total LED market is reportedly worth Rs 10,000 crore, with LED bulbs and downlighters accounting for about 50%.

Tell me more: The Nielsen study was conducted in four cities: New Delhi, Mumbai, Ahmedabad and Hyderabad. Of these, the capital recorded the highest number of Bureau of Indian Standards violations, with nearly three-fourths of LED manufacturers being non-compliant.

 

5.18 million

What is it? The aggregate employment in 1,473 medium to large companies in 2016-17, against 5.07 million in 2015-16 and 5.01 million in 2014-15, according to a study by ratings agency Care Ratings.

Why is it important? The report makes a case for employment generation not being aligned with GDP (gross domestic product) growth. The annual growth in employment in the companies under review was 1.18% in 2015-16, against GDP growth of 8%. In 2016-17, growth in employment improved to 2.25%, while GDP growth slowed to 7.1%. This is also a worrying trend for the NDA-led government, which had swept to power in 2014 with employment generation as one of its key promises.

Tell me more: The study warns it does not include the small and medium sector, which plays a dominant role in employment generation. However, it claims to be “indicative of the trends witnessed in the last two years”.

 

1,000 km

 What is it? The length of the proposed tunnel that China is planning to build to divert water from Brahmaputra, one of India’s largest rivers.

Why is it important? The tunnel, which would be the world’s longest if built, could become another point of tension between the two Asian countries. Recently, India and China were locked in a 73-day military stand-off over the construction of a road by the latter in Doklam, the border tri-junction with Bhutan. The tunnel project involves draining of water from the river in southern Tibet, which is close to Arunachal Pradesh. India, a riparian state, has previously expressed concern over the number of dams being built by China on Brahmaputra; the Chinese say these are run-of-the-river projects and not used for storage purposes.

Tell me more: The tunnel is expected to drop from the world’s highest plateau in various sections connected by waterfalls and provide water to China’s Xinjiang region, a barren area in northwest China.

 

6

What is it? Number of seasons that House of Cards, the popular Netflix political drama series, will finish with. On Monday, Netflix announced the 2018 season, currently being filmed, would be its last.

Why is it important? The announcement comes a day after Kevin Spacey, one of the lead actors in the series, issued a public statement to allegations that he had made unwanted sexual advances on a 14-year-old boy in 1986. Kevin Spacey is the latest Hollywood figure to face a pushback after allegations of sexual abuse, following producers Harvey Weinstein and director James Toback.

Tell me more: Netflix maintained the decision to terminate the series—whose Season 1, aired in 2013, is ranked 33 in IMDb’s list of most popular TV shows—was made “months earlier”.

 

80%

What is it? The share of initial public offerings (IPOs) in 2017 that has gone to promoters and investors of companies, as compared to the companies themselves.

Why is it important? This is the highest percentage since 2003. Seen another way, only one-fifth of the combined size of IPOs has come to companies as new capital, which they can channel into avenues of growth and business enhancement. This also means that promoters and investors are using the buoyancy in the market to cash in and unlock value.

Tell me more: The current IPO rush has also seen entirely new sectors debut on Indian bourses, notably insurance and mutual funds.

 

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