Digitization and China Plus One is a megatrend to invest opines Ravi Dharamshi

In the recent media interview, Ravi Dharamshi founder and CIO of ValueQuest has shared the upcoming megatrends which can be sustainable and potential investment opportunities.

Digitization is the first trend

There are a few megatrends. One is digitizing and what Covid has done is that it has accelerated this trend and this is not true only for consumers, it is true for companies and governments. This trend is not changing anytime soon.

If one looks at the numbers that Microsoft and Google are reporting, that tells us that in 2014, when Microsoft started its cloud services, it used to be a US$ 500 million business. Today it is an almost US$ 65 billion kind of a business and continuing to grow at strong 20-25% even at this size and scale. That tells us the size of opportunity and growth at which some of these companies are going in Microsoft, which is the number one or two company in the world, is continuing to grow like this and India is still a small cap in the world. Indian companies are also still very small. So, digitization is the first trend.

China Plus One is the second trend 

The number two trend that we are very bullish on is China plus one trend which is the supply chain manufacturing shifting away from China, where India is giving itself a fair shot at grabbing a large part of that opportunity. Surely there are other countries in the fray as well like Vietnam and Bangladesh. All those countries will also take their pound of flesh but no other country has such a large population which can come into the workforce or the kind of power availability or the kind of digitization and the tremendous growth that we have done and the infrastructure side as well. So we are doing our best to capture this and in the next five, seven, 10 years, we are going to capture a large part of what China is going to see in the global supply chain.

Background  

Ravi currently heads Investment Strategy and Research at ValueQuest and has proven to be an able leader. He has been associated with the Indian stock markets for over 21 years. Ravi has an MBA in Finance from McCallum Business School, US.