Thinking of investing in India? The India Avenue Equity Fund returned 69.4% over a year August 2020 ending 31 August 2021, outperforming its benchmark (MSCI India in AUD) by 14.4% in the same period.
India Avenue Investment Management (IAIM) is a boutique investment company focused on providing investment solutions for clients in Australia and New Zealand who seek exposure to India’s growth potential through its capital markets. Click here for their website:
Over the last month the India Avenue portfolio has started increasing exposure to companies leveraged to urban consumption thematics. Given India’s vaccination drive, it is anticipated that close to 100% of India’s urban population above the age of 20 will be vaccinated (currently vaccinating at a pace of more than 10m per day) by the end of 2021.
Recently they have added stocks to the portfolio which are focused on the food delivery model or restaurant chains and fast-food outlets that are likely to benefit from rising propensity to eat out of home. India’s food delivery market is expected to grow from around US$5bn to over US$20bn1 over the next five years. Factors which are propelling online delivery are:
• Changing lifestyles and eating habits, driven by the lack of availability of time and rising
wealth as well as the rising prominence of the change of household structure in cities.
• Rising digitization (internet and smart phone penetration), particularly amongst India’s
significant millennial population.
• Rising urbanisation of India
• Growing working population, particularly amongst young women.
• COVID-19 has propelled the urge to eat prepared food with contactless delivery points introduced by Zomato, McDonalds, Pizza Hut, KFC, Dominoes etc.
The number of times Indians eat out rose from 2-4 times per month in 2010 to 6.6 times by the end of the last decade. Additionally, the average spends of a consumer rose from Rs.1000 to Rs.2500 in a month2
This was especially prevalent amongst India’s millennials in Tier I and Tier II city locations. This trend has been accentuated by food technology, social media and marketing, health, and wellness and as well as the evolution of consumer palates for ethnic diversity in food choice.
INTO INDIA has consistently pointed to the large number of vibrant Tier 1 and Tier 2 cities for trade and investment.
The CEO of IAIM is Mugunthan Siva – Mugunthan.Siva@indiaavenueinvest.com