Good morning, Bengaluru!
⛈️ Today’s weather: High: 37 ℃ | Low: 24 ℃ | Generally cloudy sky with a few spells of rain or thundershowers.
🧐 Did you know? The cattle census from 2019 showed that Karnataka was home to 114.54 lakh farm animals.
🍺 Beer shortage amid surging demand
Bengaluru’s pubs and breweries are grappling with a potential beer shortage as escalating demand outstrips supply.
Social gatherings rise: Recent months have seen a surge in beer sales, influenced not only by the summer heat but also by the fruit season and numerous long weekends, which encourage social gatherings over beer. Local breweries, unprepared for this level of consumption, are struggling with supply chain issues. For instance, a brewery in Marathahalli reported selling about 30,000 litres this year, a significant increase from 9,000 litres the previous year.
- Due to the ongoing supply challenges, many establishments, including Gilly’s Restobar, are considering discontinuing popular weekend promotions like buy 2 get 1 free on beer pitchers.
- Breweries are also facing technical difficulties, such as maintaining cool fermentation temperatures, which are crucial for quality beer production.
Regular beer FTW: The operational heads of several breweries have noted that the usual sales of fruit-flavoured beers have dipped due to subpar fruit quality this year, prompting consumers to opt for regular beers instead. This shift has further strained the available beer supplies, compelling pubs to rethink their promotional strategies and production techniques to manage the unexpected demand efficiently.
💰 KKR acquires Healthium MedTech
KKR, a global investment firm, has signed definitive agreements to acquire Healthium MedTech, a prominent medical devices company based in Bengaluru, from an affiliate of Apax Partners.
The details: The deal, valued between ₹6,500 crore and ₹7,000 crore (approximately $839 million), involves KKR-managed funds acquiring a controlling interest in Healthium through a special purpose vehicle. This acquisition, part of KKR’s Asian Fund IV, is expected to close in the third quarter of the calendar year 2024, pending regulatory approvals.
- Apax Partners and Healthium were advised by Jefferies LLC, while KKR received guidance from Moelis and Company.
- Healthium, the fourth-largest surgical suture manufacturer globally, aims to strengthen and expand its market position under KKR’s ownership, benefiting from KKR’s extensive healthcare sector experience and understanding of the Indian market.
Strategic advantage: Since Apax’s acquisition in 2018, Healthium has expanded its product lines to include arthroscopy and advanced wound care, alongside its core offerings of wound closure devices. With a significant market share of 18% in India and operations in over 90 countries, Healthium’s acquisition marks a strategic addition to KKR’s healthcare portfolio in India, which already includes companies like JB, Max Healthcare, and Gland Pharma.
🏠 Zero deposit rentals gain popularity
In a significant shift from traditional rental deposit requirements, Bengaluru is seeing an increase in zero deposit rental properties.
The challenge and the solution: With rental deposits escalating by 20% in some areas this quarter, the challenge of affordability in Bengaluru’s rental market has intensified, particularly for premium properties which can demand deposits up to ₹30 lakh for a 4BHK. This trend has posed significant challenges for new city residents, often relocating for career opportunities.
- The zero deposit model introduced by NoBroker requires tenants to pay an upfront yearly premium, about 6% of the usual deposit value, plus up to an additional 10% on rent. This model aims to ease the financial burden on tenants while providing landlords with security through rental bonds.
- This approach also ensures that tenants are credit-verified, enhancing reliability for landlords. According to NoBroker, 35% of tenants in Bangalore are interested in this option, and currently, 5% of properties are leased under this model.
CEO speak: Amit Kumar Agarwal, CEO and co-founder of NoBroker.com, highlighted the dual benefits of the zero deposit solution, addressing both tenant and landlord needs. The growing acceptance and potential for expanded adoption are supported by streamlined claims processing and landlords’ increasing openness to forgo traditional, hefty deposits.
🏢 Survey wing to manage property records
The Bruhat Bengaluru Mahanagara Palike (BBMP) is set to establish a new ‘BBMP Survey Wing’ with 211 members, including a Deputy Director of Land Records, to enhance management and resolve disputes concerning its properties and private ownership issues.
What’s it about? With an annual cost of ₹6 crore, the new wing aims to address the administrative challenges posed by the lack of accurate maps and records for approximately 7,000 BBMP-owned properties and over 20 lakh land records without proper documentation. This initiative follows a proposal to the revenue department seeking to integrate the previously inactive Bengaluru Survey Wing into the BBMP.
- The BBMP Survey Wing will be tasked with sketching BBMP properties, clarifying land records, assisting in property acquisitions for public projects like road widening, and resolving disputes over private property boundaries.
- Each of the BBMP zones will be assigned seven to eight surveyors to handle these responsibilities under the technical supervision of the BBMP’s survey commission.
Expediting redressals: The formation of this wing is expected to expedite issue redressal, which has been hindered by the absence of dedicated surveyors and the reliance on the Bengaluru Urban district administration for necessary surveys.
📊 Today’s Poll
(Only subscribers can participate in the polls)
Do you like using a ballpoint pen or a gel pen?
- I like using a ballpoint pen.
- I like using a gel pen.
❓ Today’s Question
(Only subscribers can submit their answers)
If you ever write an autobiography, what would be its title?
Reply to this email with your answers.
🗞️ In other news…
- Intense heat has dried up 125 lakes in Bengaluru, with another 25 lakes close to drying up.
- The iconic Cauvery theatre in Bengaluru has closed down due to a decline in moviegoers.
- More than 700 properties on the ORR stretch are marked for the construction of the Orange Line as part of Phase 3.
- Bengaluru traffic police have warned of possible jams near the Majestic area due to the Lok Sabha elections today.
- Heavy showers with thunderstorms and gusty winds on May 6 caused tree falls and waterlogging in many parts of the city.
🛋️ Local Lounge
Yesterday’s Poll:
- I have installed air conditioners in my home: 33.3%
- I haven’t installed air conditioners in my home: 66.7% 🏆
That’s it for today. Have a great day!