More Chinese are turning vegetarian, vegan restaurants on the rise. But why?

Agencies
February 26, 2018

Beijing, Feb 26: China - the world's largest market for beef, pork and poultry - is steadily growing wary of meat as health-conscious Chinese are taking to a vegetarian diet that has sparked mushrooming of vegan restaurants in the world's most populous country.

China's restaurant industry over the past few years is reporting growing number of entrepreneurs looking to capitalise on the popularity of healthy eating, which usually means a meatless, organic and environmentally-friendly diet.

The niche market of vegetarian and vegan eateries has never been more competitive, a recent report from various cities compiled by the Hong Kong-based South China Morning Post said.

Han Lili, a Shanghai-based artist who has tracked and mapped vegetarian and vegan restaurants in major Chinese cities including Shanghai, Chengdu, Lhasa, and Hong Kong since 2012, said it had been difficult to accurately count the number in operation in the past year or two because the market changed so rapidly.

In Shanghai, China's largest city, the number of vegan outlets soared from 49 in 2012 to more than 100 last year, she said. In Chengdu, the capital of Sichuan province, almost half the 80 eateries needed updating after her last count.

A report by research firm Euromonitor said though China is still the world's biggest market for pork, beef and poultry, the demand showed a decline in recent years.

A report by Chinadialogue.Net said sales of pork declined from 42.49 million tonnes in 2014 to 40.85 million tonnes in 2016. A new dietary guideline issued by China's health industry two years ago also suggested eating less meat, poultry and seafood.

The Chinese meat industry adds around 150 million tonnes of carbon dioxide to the atmosphere every year, according to one study.

The growing trend of vegetarianism showed more Chinese turning to fruits and vegetables. China currently consumes 40 percent of the world's fruit and vegetables, indicating the growing trend of vegetarianism in China.

UN trade figures show that between 2010 and 2016, China's imports of avocados rose from 1.9 tonnes to 25,000 tonnes a 13,000-fold increase.

According to one study, the vegan market in China is expected to rise by more than 17 per cent between 2015 and 2020. This will be the fastest rate of growth internationally in this time period and suggests a huge shift in consumer habits in Asia.

Health campaigns are also trying to influence people's habits. Environmental group WildAid held an event in Beijing in August 2017 to promote vegetarianism.

Popular actor Huang Xuan said his family is eating more and more vegetarian food, a change from the traditional diet in his native province of Gansu in China's northwest, which is high in beef and mutton.

He thinks it's because people are more aware of the links between meat-eating, high blood pressure and obesity.

In 2014, state-run Xinhua news agency quoted Public Radio International, an independent non-profit multi-media organisation, reporting that China's vegan population has reached more than 50 million.

Dr Xu Jia, a dietician who leads the China programme at the Physicians Committee for Responsible Medicine, a Washington-based NGO, said he estimated one percent would be closer to the truth.

A study conducted by researchers from Shanghai Jiao Tong University in 2016 surveyed more than 4,000 people in the city and found that 0.77 percent were vegetarians.

According to the world vegetarian outfits, India where vegetarianism was rooted in religion and culture estimated to have over 500 million vegetarians who shun meat in their meal.

Significantly, the vegan culture is spreading among young people in China which has a population of over 1.3 billion.

The Shanghai Jiao Tong University study also surveyed eight popular vegetarian restaurants in downtown Shanghai and found that close to half their customers were aged between 20 and 29, even though the average age of vegetarians was 65.

Sixthtone.Com, a youth news portal has reported that in November last year Hebei University of Environmental Engineering in the city of Qinhuangdao has added a vegetarian counter in the canteen at the request of a student organisation called the Lohas Vegetarian Society.

"Sure, it might not be front-page news, but by serving meat-free meals to college students, the college is embracing a heartening trend toward vegetarianism in a society where most square meals contain pork, chicken, or beef," the report said.

Stories like this have played out across more and more Chinese universities, driven by the recently established Universities and Colleges Vegetarian Association (UCVA).

This organisation for college vegetarians was founded at Beijing's Tsinghua University on World Earth Day last year.

"Alongside the rise of animal protectionism...More and more young Chinese are viewing vegetarianism as a healthy, eco-friendly, and trendy lifestyle," the Sixthtone report said.

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Agencies
July 6,2020

The Covid-19 pandemic has made an unprecedented impact on the Indian businesses, particularly small and medium enterprises (SMEs) and startups. According to a joint survey by FICCI and Indian Angel Network (IAN), the pandemic has hit the businesses of around 70% startups.

With uncertainty in the business environment and an unexpected shift in priorities of the government as well as corporates, many startups are struggling to survive, it says.

In a nationwide survey on the 'Impact of Covid-19 on Indian Startups' involving 250 startups, 70% participants said their businesses had been impacted by Covid-19 and around 12% had shut operations.

The survey shows only 22% startups have cash reserves to meet the fixed cost expenses over the next 3-6 months, and 68% are reducing operational and administrative expenses.

Around 30% of the companies said they would retrench employees if the lockdown was extended too long. The 43% startups have already started 20-40% salary cuts over April-June.

Over 33% startups said investors had put the investment decision on hold and 10% said the deals had been scrapped. Only 8% startups had received funds as per the deals signed before Covid-19 outbreak, the survey revealed.

The reduced funding has forced startups to put a hold on business development and manufacturing activities, which has resulted in loss of projected orders.

The survey highlights the need of an urgent relief package for startups, including possible purchase orders from the government, tax relief and swifter tax refunds, and immediate fiscal support measures, including grants, soft loans and payroll grants.

Besides 250 startups, 61 incubators and investors also participated in the survey.

While 96% of investors accepted that their investments in startups had been impacted by Covid-19, 92% said their investments in startups would continue to be low over the next six months.

Around 59% investors said they would prefer to work with the existing portfolio firms in the coming months. Only 41% said they would consider new deals.

"A comparison of priority investment sectors before and during Covid-19 shows 35% investors are now looking at investments in healthcare startups, followed by EdTech, AI/Deep Tech, FinTech and Agri," said the survey.

Around 44% incubators surveyed said their day-to-day operations had been considerably hit by Covid-19. Most incubators are now supporting their portfolio firms by providing them virtual platforms to interact with mentors, investors and industries.

Dilip Chenoy, FICCI Secretary General, said, "The startup sector is stressed for survival at the moment. The investment sentiment is also subdued and is expected to remain so in the coming months. Lack of working capital and cash flows may lead to major layoffs over the next 3-6 months."

Indian startups needed an enabling ecosystem and flow of funds to continue operations, the survey said.

Padmaja Ruparel, President, Indian Angel Network & Co-Chair of FICCI Startup Committee, said, "In these uncertain times, as investors, we must play an important role to provide the Indian startups funding, mentoring and hand-holding support to stay afloat and come out at the other end of this crisis."

To that end, IAN recently announced a debt fund to help IAN portfolio companies raise working capital and ensure business continuity by partnering with debt providers.

This must be replicated on a wider scale, so a larger number of startups are provided the capital support to make it during these tough times, Ruparel said.

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Agencies
July 13,2020

New Delhi, Jul 13: The Telecom Regulatory Authority of India (TRAI) has blocked Bharti Airtel's Platinum and Vodafone Idea's RedX premium plans that offer faster data speeds and priority services to customers as both the plans were violating net neutrality norms.

The telecom watchdog has asked Bharti Airtel to explain within seven days how such a similar plan being launched does not violate the rules of net neutrality.

Vodafone Idea's RedX plan has been in the market since November 2019. They made some modifications in May 2020 and the Bharti Airtel was soon going to launch a similar plan.

According to TRAI, the higher speed for premium customers discriminate against others and violates net neutrality.

Responding to TRAI's move, Airtel spokesperson said: "We are passionate about delivering the best network and service experience to all our customers. This is why we have a relentless obsession to eliminate faults and have been consistently recognised by international agencies as the best network in terms of speed, latency and video experience."

"At the same time, we want to keep raising the bar for our post-paid customers in terms of service and responsiveness. This is an ongoing effort at our end," the spokesperson said.

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News Network
February 5,2020

Feb 5: Tesla is making Elon Musk a lot richer without paying him a dime.

A blistering stock rally has bolstered the value of CEO Musk's 19% stake in the electric car maker by $16 billion since the start of 2020, to $30 billion.

Tuesday's steep climb in the share price could sweeten Musk's payday under his record-breaking compensation package, which is built on stock options that rely on market value targets. Two milestones have now been achieved that could see Musk unlock options worth $1.8 billion.

The controversial chief executive, who is also the majority owner and CEO of rocket maker SpaceX, recently testified that he did not have a lot of cash as he successfully defended himself in a defamation lawsuit. He previously has taken loans using his Tesla shares as collateral.

Musk does not take a salary, choosing instead a risky options package that envisions the stock market value of Tesla rising to $650 billion over 10 years, a prospect that was derided by some investors when the deal was announced in 2018.

That target now looks less crazy. Shares of Tesla have rallied over 50% since the company posted its second consecutive quarterly profit last Wednesday, which was viewed as a major accomplishment for a company competing against established automotive heavyweights including General Motors Co  and BMW.

Tesla shares have climbed about 400% since early June, helped by the company's better-than-expected financial results and ramped-up production at its new car factory in Shanghai.

On Tuesday, Tesla surged as much as 24% before falling back in the final minutes of the trading session to end the day up 13.7%. That put its market capitalization at $160 billion, almost twice the combined value of Ford Motor and General Motors.

The shares had also rallied on Monday, partly fueled by Panasonic Corp's 6752.T saying its automotive battery venture with Tesla was profitable for the first time.

The options Musk was awarded in 2018 vest incrementally based on targets for Tesla's stock market value and its financial performance. The market capitalization would have to sustainably rise by $50 billion increments over the agreement's 10-year period, with the full package payout reached if the market cap reaches $650 billion, as well as the company's meeting revenue and profit targets.

Musk is on his way to seeing his first two tranches of options vest. He achieved operational targets on revenue and adjusted earnings last year.

The rise in Tesla's market capitalization last month to a target of $100 billion opened the way for Musk's first tranche of options to vest. With Tuesday's surging share price, the market capitalization blew past the second target of $150 billion, opening the way for the second tranche to vest. Tesla's market capitalization must stay at or above each target level for one- and six-month averages for each set of options to vest.

Tesla was valued at about $52 billion when shareholders approved the pay package in March 2018, a time when the company faced a cash crunch, production delays and increasing competition from rivals.

A full payoff for Musk would surpass anything previously granted to U.S. executives, according to Institutional Shareholder Services, a proxy advisor that recommended investors reject the pay package deal at the time.

Musk currently owns about 34 million Tesla shares, and his compensation package would let him buy another 20.3 million shares if all his options tranches vest.

When Tesla unveiled Musk’s package, it said he could in theory reap as much as $55.8 billion if no new shares were issued. However, Tesla has since awarded stock to employees and last year sold $2.7 billion in shares and convertible bonds, diluting the value of the stock.

Musk has transformed Tesla from a niche car maker with production problems into the global leader in electric vehicles, with U.S. and Chinese factories. So far it has stayed ahead of more established rivals including BMW and Volkswagen.

Many investors remain skeptical that Tesla can consistently deliver profit, cash flow and growth. More Wall Street analysts rate Tesla "sell" than "buy," and the company's stock is the most shorted on Wall Street.

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