India: economy driven by food and logistics
Comgest focus on Varun Beverage and Adani Ports
India continues to experience high inflation, with the CPI at 7.0% in March compared to 6.1% in February. The sharp rise in global commodity prices is likely to keep inflation above the Reserve Bank of India (RBI) comfort zone of 4-6% over the next few months. While the central bank held the repo rate at 4% at its April meeting, other liquidity measures to contain inflation were tightened, indicating a less accommodative stance.
As explained by Bhuvnesh Singh, Asia ex Japan and India equity manager of Comgest, an international independent asset management firm, Beverages and Adani Ports were among the best performing stocks on the exchange. Varun Beverages posted excellent results, with volumes up 19% in the March quarter, thanks to the early summer and strong demand. The new products launched by the company in recent years represent approximately 10% of total volumes in India.
In March 2022 Adani Ports recorded its highest monthly load ever (29.16 million metric tons), with a growth of 12% on an annual basis. In fiscal year 2022, the company handled its highest load ever of 312 million metric tons, up 26% year-on-year. The company recently completed the acquisition of 100% of India's third largest private port and the resulting efficiency improvements are expected to materialize in the coming years.
EFA News - European Food Agency