 "India's silent transformation to boost six stocks")
A Credit Suisse Study highlights six liquid stories to play this theme. The benefits would accrue to ITC, Sriram Transport, Emami, ACC, HDFC bank and Dish TV
The Credit-Suisse secondary research through field trips across country finds that the silent transformation in India is happening. With about 80 percent of households being wage dependent, they feel that the multi-decade high wage growth for unskilled workers should continue given rising productivity, better wage discovery, and alternative job opportunities.
While job guarantee programs are driving growth, the other structural driver include roads , electrification, cell phones, cooking gas and water availability. The rural roads are important for growth as there were large wage gaps between villages that have roads and those that do not. Further commuting and possibility of alternative activities (e.g. poultry, vegetables) are also other structural drivers. The increasing electrification is increasing the number of hours worked in a day, and also household automation The cell phones have been demonstrated to improve price discovery/stability in fish and agricultural produce. Further, improving cooking gas and water availability are also freeing up critical time for workers, especially women.
The research house highlight case studies from its field-trips have shown that the growth in productivity is becoming sustainable: poultry farming itself, for example, created as many jobs as NREGA.
In the backdrop the six liquid stories to play this theme include ITC (cigarette consumption), Shriram Transport (greater consumption of goods transported from the nearby town raising LCV sales), Emami (personal care spend), more pukka housing (ACC) ,improving financial inclusion (HDFC Bank), and increasing spend on entertainment/ cable charges (Dish TV).
The Credit-Suisse secondary research through field trips across country finds that the silent transformation in India is happening. With about 80 percent of households being wage dependent, they feel that the multi-decade high wage growth for unskilled workers should continue given rising productivity, better wage discovery, and alternative job opportunities.
While job guarantee programs are driving growth, the other structural driver include roads , electrification, cell phones, cooking gas and water availability. The rural roads are important for growth as there were large wage gaps between villages that have roads and those that do not. Further commuting and possibility of alternative activities (e.g. poultry, vegetables) are also other structural drivers. The increasing electrification is increasing the number of hours worked in a day, and also household automation The cell phones have been demonstrated to improve price discovery/stability in fish and agricultural produce. Further, improving cooking gas and water availability are also freeing up critical time for workers, especially women.
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About forty 40 percent of households own at least an acre of land. Thus the increasing land prices are driving consumer confidence. While the land rentals may have not kept pace the land prices are likely to continue increasing with increasing prices of agricultural produce, increasing road connectivity to be a few amongst other factors contributing to the rise.
The research house highlight case studies from its field-trips have shown that the growth in productivity is becoming sustainable: poultry farming itself, for example, created as many jobs as NREGA.
In the backdrop the six liquid stories to play this theme include ITC (cigarette consumption), Shriram Transport (greater consumption of goods transported from the nearby town raising LCV sales), Emami (personal care spend), more pukka housing (ACC) ,improving financial inclusion (HDFC Bank), and increasing spend on entertainment/ cable charges (Dish TV).