INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Urbanisation brings with it changes in lifestyle and consumption patterns
The story doesn't end there
It also marks a change in investment portfolio
Roads and consumer durables are the two major sectors where ultra HNIs of India are parking their money, said Jitendra Gohil from Credit
Suisse Wealth in an exclusive interaction with ETNOW
standards also go up because they are able to access newer markets for their goods
They also have their avenues to earn extra income," he explained.
Those which are into electric space like TD companies are his clear
favourite.
On consumer durable companies, Gohil said, "Financial penetration will help improve penetration of white goods
So, we like consumer discretionary companies that are catering to the needs of consumers."
Gohil is positive on housing, too
He outlines four ways to play the theme
One, you directly buy a company that develops low-cost houses
Second, he bets on firms that are into mortgages
"It is a huge opportunity for India because mortgage penetration in India as percentage of GDP is just 10 per cent, and it is expected to be
12-14 per cent in the next five odd years," he said further.
Third, the companies dealing in low-cost housing finance should also do
well.
"Last, house refurbishment companies like paints and tiles which have seen some kind of performance lag because of GST and
demonetisation should also be looked at now," Gohil advised.
Asked about what's driving premiumisation, Gohil has plenty of proof
"Change in food habits, mushrooming of restaurant and hotel chains and opening up of fitness centres in every nook and corner of a city
prove people's standard of living is changing," he replied.
On top of that, premium vehicles are picking up pace, which grew around 25 per
cent over the last 10 years
Even the air travel industry has witnessed a sharp turnaround
By 2020, it is expected that India will be the third largest domestic airline passenger market.
"We have compared India with some other
We have studied how they have urbanised and we have bucketed them in the 0-10 per cent, 10-20 per cent, 20-30 per cent urbanisation rate
categories," Gohil said, when queried about the fine print.
Whenever these countries have moved from 30 per cent urbanisation rate to 40 per
cent, they have seen a significant jump in per capita income
When per capita income goes up, the consumption ability rises and this trend is clearly visible, Gohil tells you more about the dynamics
