Good morning my dear readers,

A great long'ish weekend. Hope you all have exciting plans.

Happy Independence Day in advance friends 🇮🇳.

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China+1

I know this China+1 has become a very repetitive topic since a year but I wanted to highlight the importance of this to you all.

I recently spoke to a unlisted small auto components company and the founder was really excited and kicked about the future.

He was expecting 30-35% growth this year and the same for the next 2 years too.

And he is largely into exports.

(Wait a minute!), I thought to myself.

The US is almost in a recession and Europe is a Zombie. How is it that this tiny company with about 150 crore of revenue is talking about such robust and consistent growth?

It is not as if Vehicles are selling as fast and easily as Khao Suey globally.

Infact, the global Automobile industry is NOT HOT at all, at the moment.

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The founder tells me, "No, its not that the Auto industry is having a great time, but China has a near 80-90% market share in our segment and most global Giants are moving some part of their supply chain into India".

"We have already been informed by our clients to continue to expect increased order flow".

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What was interesting was that a Global Adhesives giant also recently said the same thing that they have been facing a lot issues with their supply chain in China and that India will see a lot their future business.

Conclusion:

I really believe that some sort of a 'different vibe' has gripped India at this moment.

No one can predict short term market movements but in the long run, I feel something special is about to happen in India.

All we need to do now is stay invested, create savings, stop unnecessary big ticket spending and create a STRONG SIP habit.

(All the rest will be taken care by the underlying fundamentals of India).

*Also, avoid leveraged trading.

Hold on tight, it is going to be a magical decade ahead.

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Khao Suey, anyone?

Burma Burma was recently featured in Forbes. Your Negen Startup Platform had invested here recently.

Have a read, link below =)

https://www.forbesindia.com/article/take-one-big-story-of-the-day/beyond-khao-suey-how-burma-burma-is-stepping-on-the-gas/87391/1

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That is it for today my friends, I highly recommend watching the movie, Oppenheimer.

It is a very serious and long movie, but I loved every bit. Go for it.

And until next time dear friends, stay safe and enjoy the weekend with your Blue Tokai Coffee.

Jai Hind,

Neil Bahal

Founder

Negen Capital