Mega Trend of 2022

 

1. IT digitization: IT sector is going through a golden period for next 3 year atleast. Covid pushed rapid cloud software deployment, work from home etc.
2. Ethanol blending: Major push by NDA Govt, India is on course to become 3rd largest ethanol market on the Globe. India has tripled ethanol demand to an estimated 3 Billion Litres btwn 2017 - 2021. Asia will account for 30 % of the new production with an annual global demand up by 28% p.a. Govt policies are seen to be the principal driver of the demand expansion. Ethanol blending in petrol helped Inida save ₹9,580 crore last 1yr.
3. Online Music streaming: The monetization push driven by digital consumption via streaming and social media platforms, combined with consistent cost discipline, has been really quite surprising. Saregama India Ltd. is an Indian music label and content producer for Indian television. Licensing revenue increased by 20% YoY (on an adjusted basis) in FY21. The management reiterated its guidance for 22-25% growth in licensing revenue (B2B), which will be aided by new content acquisition. They also stated that they hope to capture 20-25% of the new music market. Monetization of existing IPs via digital platforms and new music acquisition will aid growth in B2B (licensing) music sales. Minimal marketing spends have benefited the company’s margins, and the company has forecasted low marketing expenses for the next few quarters.
4. Flourination: Around 53% of new Agro APIs are Fluorinated molecules (compared to a 40% in 2000). Organofluorine compounds have emerged as attractive synthetic building blocks in both the Pharmaceutical and Agrochemicals industry. Fluoro-Agrochemicals are of lower environmental toxicity than organochlorine Agrochemicals. As is now common in the Pharmaceutical industry, Fluoro-Agrochemicals will most likely receive increased attention in the near future. The management has been reiterating huge opportunities in both the Agro and Pharma space.

• IT digitization: TCS, Mastek, LTI, Tata Elaxi
• Ethanol blending: Globus Spirit
• Online Music streaming: Saregama
• Fluorination: Navin Fluorine