Good morning. More and more dieticians and nutritionists in India are urging people to up their protein intake, and for good reason. Indians are well known to be protein deficient. While Indian fitness enthusiasts have long been lapping up protein goodies including bars and shakes, it isn’t something usually found on your ordinary grocery list. Amul, India’s good old dairy cooperative, is trying to change that. Read on to know more. 

Meanwhile, US-based short seller Hindenburg is making headlines in India once again. Only this time, it has levelled allegations not just against the Adanis but India's market regulator. In other news, declining bank deposits have got banks and the finance ministry worried. 

DE[CODE] THE NEWS

Can Amul Get Indians To Take Their Proteins?

What?

For the first time since Operation Flood of the 1970s, Amul has an audacious new target: fixing India's protein deficiency. In the last two years, it has launched high-protein variants of a diverse range of everyday products, including a "super milk" with 35g of protein, cartons of high-protein lassi and buttermilk, and even protein-enriched paneer. 

How?

Amul faces challenges familiar to sellers of high-protein products: low consumer awareness and a reluctance to shift from high-carb traditional Indian diets. However, Amul's strategy of offering familiar products with added protein at competitive prices, and its extensive distribution network could help overcome these barriers but sustaining consumer interest will be key. 

Can Amul pull this off? 

PODCAST

Markets To Hold Steady

On Episode 361 of The Core Report, financial journalist Govindraj Ethiraj talks to Ajay Rotti, founder & CEO of Tax Compass as well as veteran economic journalist Shankkar Aiyar.

CORE NUMBER

75.26 million tonnes

Is what India’s coal imports rose to in the first quarter of this fiscal year. The country’s coal imports rose 5.7% year-on-year from 71.16 million tonnes in the same period last year. According to B2B e-commerce platform mjunction services ltd, which compiled the data, the surplus coal in the system as well as an industrial slowdown in the monsoon could keep demand subdued in the coming month.

FROM THE PERIPHERY

—📑 US-based short seller Hindenburg Research recently levelled several allegations against SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch, including that the two had a stake in offshore entities linked to the Adani Group. This raises concerns over potential regulatory misconduct and conflict of interest for the market regulator. Adani Group and Buch rushed to refute the allegations on Sunday. The Hindenburg report comes 18 months after it first accused the Adani Group of stock market manipulation and account fraud. 

—🏦 Credit growth has been continuously outpacing growth in deposits in Indian banks. As of July 26, aggregate deposits of all scheduled commercial banks grew to 10.6% year-on-year, while credit expansion grew to 13.7%. Credit rating agency CareEdge Ratings said that the credit-deposit ratios raise concerns over the ability of Non-Banking Financial Companies (NBFCs) to secure funds. Finance Minister Nirmala Sitharaman also raised concerns over this and said that banks need to focus on raising smaller deposits. The widening gap could lead to potential liquidity issues. 

—🛢️ A third of Russia’s cumulative crude oil exports came to India in the first half of this year, according to the Oxford Institute for Energy Studies. India, China and Turkey made up 93% of the export market for Russian crude oil, of which India accounted for 48%. India’s imports of Russian crude oil have sharply increased since 2022, although challenges including payment sanctions and the impact of US sanctions continue. 

—💎 Prices of India’s domestic lab-grown diamonds have fallen by 65% in the last year, thanks to overproduction at home and high imports. That isn’t all that’s plaguing the industry. Eroding consumer interest, and import of cheap diamonds are intensifying competition, according to the Global Trade Research Institute (GTRI). The GTRI highlighted the need for stricter quality control and better consumer education to maintain trust. 

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