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Subbu's Solution

Notes from Lucknow

Many Happy Returns of the day is what I wish when I leave some of my favorite cities. Lucknow is one of them. I wanted to return as I have in the past few years ever since I got married to a girl from Lucknow.

I love the relaxed pace of life, the winters, the military grounds, the historical monuments, the delicious food, the winter desserts, the summer kulfis and the “Daseri” mangoes.

However, this time I wondered if I really wanted to come back as frequently as I did in the past. The new metro construction is good for the city, yet I feel sad to see the destruction of Hazratganj; a lively and lovely market place. Most importantly what put me off this time was the number of two wheelers in the city. Within a year, the number of two wheelers in the city appeared to have ballooned resulting in noise and smoke pollution and leaving many citizens irritated- a rare situation given the relaxed atmosphere of the city and the traditional Lucknow culture of “Pehle Aap”.

As per an article in Hindustan Times there were 1.9 m two wheeler sold in UP in FY2017. I could hazard a guess that a significant portion of that would be in Lucknow. At the end of 2016 the total number of cars and two wheelers accounted for 1.8 m vehicles in Lucknow where the business district was a few sq km. One can therefore imagine the density of the two wheeler population.

Potential Risk: Looking at the sizable population of two wheelers, the thought in my mind was “Will the government clamp down sale of two wheelers or will they subject it to licensing norms?” It would be a huge negative for two wheeler business if it were to happen. The lack of good public transport infrastructure is one of the key driving factors for two wheeler growth. Will this risk play out? Time will answer.

I would like to know what you think about such issues. You can email me at SubbuSolutions@QuantumAMC.com

Disclaimer:

Subbu's Solution is authored by I. V. Subramaniam. I. V. Subramaniam is a director of Quantum Asset Management Company Private Limited. The responses expressed here are strictly for information and explanation purpose only. The responses are meant for general reading purpose and not to be considered as an investment advice / recommendation. The responses are not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or units of the Mutual Fund. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in the responses.

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