Tiger in Focus: Good Glamm’s Cash Flow Issues

Fast-moving consumer goods giant Hindustan Unilever is currently in discussions to acquire the skincare startup Minimalist, based in Jaipur. This potential deal, valued at Rs 3,000 crore, is making waves in the financial world, according to reports by Moneycontrol. Marico, a competitor of HUL, has also reported better-than-expected performance in the second quarter, with brokerages like Nuvama and Nomura giving positive ratings to its stock. The success of brands like Saffola and Parachute have contributed significantly to this growth.

While FMCG brands are experiencing a resurgence in the stock markets, they are also facing challenges such as inflation and urban slowdown. To combat these issues, some brands are resorting to ‘shrinkflation,’ where the product size is reduced while maintaining the same price. However, this strategy may backfire, as a study by LendingTree found that a large percentage of consumers have noticed this tactic and boycotted brands as a result.

For FMCG brands, opportunities lie in the rapid growth of quick commerce, which has become the primary grocery shopping method for 31% of urban Indians. Additionally, premiumisation, where consumers are willing to pay more for high-quality products, presents a lucrative avenue for brands to explore. In today’s competitive market, consumers prioritize quality over quantity, making it essential for brands to focus on delivering premium products.

On the financial front, Tiger Global’s recent sale of 12.7 million PB Fintech shares has raised eyebrows in the market. This sale coincided with SEBI’s investigation into alleged front-running activities by Ketan Parekh. While Tiger Global’s involvement in the probe raises questions, there is no concrete evidence connecting them to any wrongdoing. SEBI’s order highlights the involvement of a major foreign institutional investor, referred to as the ‘Big Client,’ in the scandal.

Another company making headlines is The Good Glamm Group, which has encountered cash flow problems resulting in delayed salary payments for some employees. Reports suggest that the company is considering selling off some of its brands to raise funds to address its financial challenges. This delay in payments follows a series of high-profile exits within the company, indicating internal turmoil.

Lastly, Aurm, a startup focused on providing secure locker solutions for gated communities, aims to bridge the gap in demand and supply for bank lockers in India. Founded in April 2023, Aurm offers automated, secure locker services backed by insurance. The startup caters specifically to the needs of gated community residents, providing a safe and accessible solution for storing valuables.

In other news, Apple has agreed to a $95 million settlement with users affected by privacy concerns related to its Siri voice assistant. Additionally, foreign mobile phone shipments in China have seen a significant decline, putting pressure on international handset vendors like Apple. US President Joe Biden has also intervened to block the takeover of US Steel by a Japanese company, citing national security concerns. These developments underscore the complex and evolving landscape of the global financial market.