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Indian indices are holding the morning gains presently with investors making some brisk purchases. Sectoral indices are trading on a mixed note with stocks from the consumer durables and realty sectors leading the gains. Metal and capital goods stocks are however trading in the red.
The BSE Sensex is trading up 84 points (up 0.3%) and the NSE Nifty is trading up 24 points (up 0.3%). The BSE Mid Cap index is trading up 0.7% while the BSE Small Cap index is trading up by 0.8%. Gold prices, per 10 grams, are trading at Rs 31,215 levels. Silver price, per kilogram is trading at Rs 47,904 levels. Crude oil is trading at Rs 2,825 per barrel. The rupee is trading at 67.02 to the US$.
As per an article in The Economic Times, Dabur plans to invest about Rs 5 billion in this fiscal to set up new production units as well as expand the existing plants in India and abroad.
Reportedly, the company is following a prudent growth strategy to manage risks and challenges. The company will also continue to focus on brand-building and leverage on its position of science-based Ayurveda specialist (Subscription Required).
Meanwhile, Dabur India has posted a consolidated net profit of Rs. 2.9 billion for the quarter ended June 2016. The company had posted a consolidated net profit of Rs 2.6 billion in the June 2015 quarter.
Further, the sales grew by a mere 1.2% YoY to Rs 19.2 billion in the June 2016 quarter from Rs 19 billion in the year-ago period
The categories which witnessed growth included oral care business which grew 12% during the first quarter, while the foods business grew over 4%. The company's international business grew nearly 6% led by Nepal, Egypt and Turkey, the reports stated.
Moving on to the news from retail sector. According to an article in a leading financial daily, PC Jeweller Ltd is raising Rs 2.6 billion from US-based investment firm Fidelity to support its growth strategies.
The company said that its board has approved the issue of compulsorily convertible preference shares on private placement basis.
Moreover, this is the second private funding for the firm to fuel its expansion plan this year. It had earlier raised Rs 4.3 billion from an existing investor DVI Fund Mauritius.
Further, the proceeds from DVI Fund and Fidelity would be utilized as capital expenditure for future expansion. Part of the funds raised will also be used to set up a manufacturing unit in Delhi-NCR, the company stated.
As part of growth plans, it is also tying up with local jewellers as franchisees to expand across India. The company plans to open 20 stores every year till 2020 across all store formats, the reports stated.
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