Nine companies those high benefits of millennial generation and worth to buy
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updated on 31 Mar 2016
According to a report by Morgan Stanley India, there were 40.7 crore Indians in the age group of 18-36, referred to as millennials, in 2016. This was nearly one-third of the country's total population. They will be the key drivers of consumption growth in the country in years to come.
The below is the list of nine companies which this generation can identify with due to their popular brands and may even consider for investing given their sound financials and better growth prospects.
TATA GLOBAL BEVERAGES (TGB)
Apart from its tea brands such as Tata Tea, TGB has a known green tea brand called Tetley. With increasing preference for healthy beverages, the green tea segment is expected to grow fast. TGB also has coffee brand Starbucks which enjoys high acceptance among the millennials.
Bajaj Finance is one of the leading non-banking finance companies. It is a dominant player in financing of consumer durables & lifestyle products, which have a high growth potential. In FY16, it had close to 68 lakh clients. The number is expected to grow given the tendency among the millennials to use financing options for mobiles, and other home and personal utility products.
Page is an exclusive licensee of Jockey International to sell all Jockey innerwear products for men and women in India, Sri Lanka, Nepal and the UAE. The company's capacity has increased by 10 times in the past 10 years to 22.5 crore pieces in FY16. It is expected to go up to 40 crore pieces by FY19 thereby helping the company to take advantage of the expected increase in demand.
Known for its quick service restaurant (QSR) brand McDonald's, Westlife is expected to double its restaurant chain to 450-500 by 2022.India's QSR segment is expected to grow at a CAGR of 25%.
In India, the beer market has traditionally doubled every five-six years.The industry has consolidated in the past four years. It is likely to see better growth from FY18 as the overall economy improves. United breweries which sells, Kingfisher and Heineken brands, is the market leader with over 50% share and will benefit the most from the expected growth.
The brand Titan is usually associated with the watch industry . However, the listed company Titan also owns the largest jewellery brand -Tanishq, which contributes 85% to the company's net profit. After demonetisation, Titan has started gaining market share. It is expected to deliver double-digit revenue growth for the next two-three years.
Known for Talwalkars gym brand, the company with its two lakh members and 176 gyms is expected to be the prime beneficiary of the increasing health consciousness among the millennials. India's fitness industry is under-penetrated with an estimat ed 0.4% (for top seven cities) membership as compared with the Asia Pacific average of 3.7%.
Wonderla has two amusement parks in Kochi and Bengaluru, which delivered average operating margin before depreciation (EBIDTA margin) of 45% between FY11 and FY16 and 35% return on capital. The company is setting up a park at Hyderabad, which would cater to the rising urbane travel enthusiasts.
Eicher Motors manufactures Royal Enfield motorcycles which is often referred to as the Harley Davidson of India. Eicher is the country's leading player in the 250cc premium motorcycles with more than 95% market share. It enjoys a unique aspirational positioning given its distinctivelystyled motorcycles.