1) Iran closes down Strait of Hormuz, from where 35% of India's oil imports passed through.
The purported closure of the Strait of Hormuz by Iran would represent a critical geopolitical risk with immediate and severe global ramifications. This narrow chokepoint, through which approximately 20% of the world's total petroleum liquids consumption and a significant portion of global LNG trade passes, is a vital artery for international energy markets. A blockade would instantly trigger extreme commodity market volatility, with Brent crude prices potentially surging to $150-$200 per barrel, unseen since the 1970s, causing widespread inflationary pressures and potentially global economic contraction.
For India, highly dependent on energy imports, this situation presents a profound supply chain disruption and energy security challenge. While the headline states 35% of India's oil imports pass through Hormuz, recent analyses suggest this figure could be higher, closer to 40-50% for crude oil and over 50% for LNG. Such a closure would lead to a sharp increase in India's import bill, exacerbating the current account deficit and fueling domestic inflation. Indian refiners would face immense pressure to activate contingency planning by seeking alternative suppliers from non-Gulf regions like Russia, the US, West Africa, and Latin America, despite potential increases in freight and insurance costs, which have already seen war risk premiums surge.
Beyond immediate economic shocks, the incident underscores the strategic imperative for long-term diversification of sourcing and building supply chain resilience. While India possesses strategic petroleum reserves (covering about 9-15 days of import coverage), these are short-term buffers, not sustainable long-term solutions. The geopolitical implications extend to increased tensions in the Middle East, potentially drawing in major global powers. This event highlights the vulnerability of major oil-importing economies, particularly in Asia, and the urgent need for robust risk management frameworks and energy diplomacy to safeguard national interests and market stability.
2) India's private dairy sector gains ground over cooperatives, now control more than 50% of milk supply.
The Indian dairy sector, the world's largest milk producer with an output of over 239 million tonnes in FY24, is undergoing a significant strategic shift. Private dairy players have reportedly surpassed traditional cooperative federations, now controlling more than 50% of the organized milk supply market. This market share dynamic represents a major evolution in the competitive landscape, moving away from the cooperative-dominated model established by Operation Flood. This ascendancy is driven by the private sector's agility and market-oriented strategies.
The success of private dairies can be attributed to their robust supply chain management and flexible procurement strategies, often offering better prices and timely payments to farmers to secure milk supply. They have also invested heavily in modern processing technology and cold chain infrastructure, ensuring product quality and shelf life. Furthermore, a key differentiator is their sharp focus on high-margin value-added products (VAPs) such as cheese, paneer, yogurt, and flavored milk, which cater to changing urban consumer preferences and higher disposable incomes. CRISIL Ratings projects the VAP segment to grow by 16-18% in FY25, significantly boosting revenue and operating margins for these firms.
From a strategic management perspective, this shift poses a challenge for cooperatives like Amul and Mother Dairy, compelling them to enhance their operational efficiency and product innovation to remain competitive. The increasing private sector dominance, led by companies like Hatsun Agro and Dodla Dairy, is driving competition, which is ultimately a positive development for consumers who benefit from a wider product portfolio and improved quality. This transformation underscores the importance of a commercially viable business model in a maturing market, emphasizing innovation and consumer-centricity over the traditional focus on farmer welfare alone.
3) India's Electricity generation has increased from 1,168 billion units (BU) in 2015-16 to 1,824 BU in 2024-25.
India's electricity generation has seen substantial growth, increasing from 1,168 billion units (BU) in 2015-16 to an estimated 1,824 BU in 2024-25. This represents a robust Compound Annual Growth Rate (CAGR) of approximately 5.0% over this nine-year period, underscoring electricity's pivotal role as a fundamental economic growth driver and a key indicator of rapid infrastructure development. This surge in generation capacity, alongside a significant rise in per capita electricity consumption by 45.8% since 2013-14, reflects India's sustained economic expansion, industrialization, and rapid urbanization. Power shortages have also drastically reduced from 4.2% in 2013-14 to a mere 0.1% in 2024-25, signifying improved grid reliability.
The impressive growth is driven by multifaceted factors including increased industrial activity, widespread electrification efforts like the 'Power for All' initiative, and rising household demand for appliances. While thermal power, predominantly coal, remains the largest contributor to the energy mix with 240 GW (50.52% of capacity as of June 2025), India has made significant strides in diversification of energy sources. Non-fossil fuel sources now constitute 49% of the total installed capacity at 235.7 GW, with solar capacity alone having surged from 2.82 GW in 2014 to 110.9 GW by June 2025, reflecting a strategic shift towards sustainable development and energy security.
Looking ahead, India faces the strategic imperative of balancing escalating energy demand with ambitious decarbonization goals. The country has set a target of achieving 500 GW of non-fossil fuel capacity by 2030, necessitating substantial ongoing capital expenditure in renewable energy projects and associated transmission infrastructure. Challenges such as grid stability due to intermittent renewable sources and enhancing operational efficiency across the power value chain remain critical. Continuous reforms, robust policy support like the Production-Linked Incentive (PLI) scheme for solar manufacturing, and significant investment in smart grids and energy storage solutions will be vital to ensure a reliable, affordable, and greener energy future.
4) Alia CX300 has become world's first electric plane to successfully carry passengers over 130km in US.
Beta Technologies' Alia CX300 has achieved a significant milestone, becoming the world's first all-electric aircraft to successfully carry four passengers over a substantial distance of 130 kilometers. This historic 35-minute flight from East Hampton to New York's JFK Airport in the US, reportedly costing merely $8 in electricity, represents a pivotal moment in sustainable aviation. This innovation by the Vermont-based company demonstrates the burgeoning commercial viability of electric propulsion for regional air mobility, drastically reducing operational costs and noise pollution compared to conventional helicopters or short-haul turboprops.
The Alia CX300 is an electric Conventional Takeoff and Landing (eCTOL) aircraft, meaning it operates from runways like traditional planes, distinguishing it from Vertical Takeoff and Landing (eVTOL) models. Its success validates the potential for market disruption in short-to-medium haul air travel, opening up possibilities for more frequent, quieter, and affordable regional connections. The focus on cost-efficiency and reduced environmental impact, with zero direct carbon emissions, aligns perfectly with global pressures for green technology adoption and corporate sustainability goals, offering a compelling value proposition for airlines and logistics operators.
Despite this breakthrough, widespread market penetration of electric aircraft faces considerable challenges. Key hurdles include enhancing battery energy density to extend range and payload capacity, developing robust and scalable charging infrastructure at airports, and navigating complex regulatory hurdles to secure full type certification from aviation authorities like the FAA (which Beta aims to achieve for CX300 by late 2025). However, this flight is a powerful testament to the progress in electric aviation, attracting strategic investment and accelerating the industry's trajectory towards a cleaner, more efficient, and potentially more accessible future of air travel.
5) Insurance claims for the Ahmedabad crash are expected to be around $475 million.
The reported "Ahmedabad crash" with anticipated insurance claims of $475 million refers to the tragic Air India Flight AI171 crash on June 12, 2025. This incident, involving a Boeing 787-8 Dreamliner, claimed 241 lives onboard and an additional 38 on the ground when it crashed into a residential area, making it one of India's costliest aviation disasters and the deadliest aviation accident globally in over a decade. This significant catastrophic loss will have far-reaching implications for the aviation insurance market and global risk management practices.
The estimated $475 million in claims is primarily segmented into approximately $125 million for the aircraft's hull and engines, and a substantial $350 million for liability exposure, covering passenger compensation (mandated by conventions like Montreal Convention), third-party property damage, and personal accident claims. While Indian insurers like Tata AIG General Insurance and GIC Re are the primary underwriters, the vast majority, reportedly over 95%, of this financial burden will be borne by global reinsurance markets, predominantly in London and Bermuda. This global distribution of risk is a testament to the essential role of reinsurance in maintaining the solvency of primary insurers.
From a strategic management perspective, this incident will inevitably lead to a "hardening" of the global aviation insurance market. Experts anticipate a significant increase in premiums for airlines worldwide, potentially ranging from 10% to 30%, especially for wide-body aircraft. This reflects a reassessment of actuarial risk and underwriting models, emphasizing the critical need for enhanced safety protocols, stringent regulatory oversight, and robust crisis management and business continuity planning within the aviation sector. The crash underscores the complex interplay between operational safety, financial resilience, and global insurance market dynamics.
6) RBI's Gold reserves, increased to $83 bn as on June 13, from $67 bn on Jan 3.
The Reserve Bank of India (RBI) has significantly bolstered its gold reserves, increasing them from $67 billion on January 3, 2025, to $83 billion as of June 13, 2025. This substantial accumulation, which contributes to India's overall foreign exchange reserves (approaching $700 billion as of mid-June 2025), is part of a deliberate portfolio diversification strategy employed by central banks globally. Gold's share in India's total forex reserves has risen to nearly 12% by March 2025, from 9.32% in September 2024, highlighting its growing strategic importance.
The primary motivations behind the RBI's increased gold holdings are multi-faceted, reflecting sound risk management principles in an uncertain global economic and geopolitical landscape. Gold acts as a crucial hedge against the volatility of the US dollar and other reserve currencies, providing a stable store of value during periods of currency fluctuations, geopolitical tensions, and potential inflationary pressures. Many central banks, particularly in emerging markets, are reducing their reliance on the US dollar, seeking to diversify their assets and enhance their economic resilience against external shocks and potential financial sanctions.
This trend is not unique to India; the World Gold Council's 2025 survey indicates that 95% of central banks expect their gold reserves to increase over the next 12 months, with 43% planning to add to their own holdings. The RBI's strategic decision aligns with this global movement, aiming to strengthen India's financial buffers, enhance confidence in its macroeconomic stability, and contribute to overall currency stability. By increasing its gold reserves, the RBI is strategically fortifying the nation's financial strength and preparing for an increasingly unpredictable international monetary system.
7) India enters top 100 for first time in Sustainable Development Goals Index rankings at 99th rank with a score of 67 out of 167 countries.
India has achieved a significant milestone by entering the top 100 in the Sustainable Development Goals (SDG) Index for the first time, securing the 99th rank out of 167 countries with a score of 67. This marks a substantial improvement from its previous rankings, including 109th in 2024, 112th in 2023, 121st in 2022, and 120th in 2021. This consistent upward trajectory demonstrates India's escalating commitment and strategic policy interventions towards achieving the 17 UN SDGs by the 2030 deadline, enhancing its global standing and leadership in sustainable development.
This notable progress is largely attributed to India's robust policy implementation across several critical areas. Significant advancements have been observed in sectors such as No Poverty (SDG 1), Good Health and Well-being (SDG 3), Affordable and Clean Energy (SDG 7), and Industry, Innovation, and Infrastructure (SDG 9). Flagship government schemes like the Pradhan Mantri Awas Yojana for housing, PM Ujjwala Yojana for clean cooking fuel, Jal Jeevan Mission for piped water, and Ayushman Bharat for health coverage have been instrumental in driving these improvements, demonstrating effective resource allocation and program management.
From a strategic management perspective, India's improved SDG ranking enhances its international reputation and could positively influence foreign direct investment (FDI) inflows, as investors increasingly prioritize Environmental, Social, and Governance (ESG) compliance. While this is a commendable achievement, challenges persist, particularly in areas like gender equality (SDG 5), reducing inequalities (SDG 10), and biodiversity conservation (SDG 15), as indicated by global trends. Continued focus on these lagging indicators, along with strengthened inter-ministerial coordination and state-level localization efforts, will be crucial for India to maintain its sustainable growth trajectory and fulfill its 2030 agenda.
8) From Domino's to Lenskart, franchise models are helping brands penetrate deeper into Tier 2&3 cities.
The franchise model has emerged as a crucial strategic imperative for brands seeking to deepen their market penetration, particularly within India's burgeoning Tier 2 and 3 cities. With these markets witnessing a significant uptick in disposable incomes and evolving consumer aspirations, they represent a vast, largely untapped customer base. Brands like Domino's and Lenskart are effectively leveraging franchising to capitalize on this growth, recognizing the lower operational costs and reduced competitive intensity compared to saturated metropolitan areas.
The inherent advantages of the franchise model provide a significant competitive edge for expansion. Franchisors benefit from reduced capital expenditure, as franchisees bear the investment burden for new outlets. This capital efficiency facilitates rapid scalability, allowing brands to expand their footprint much faster than through company-owned stores. Moreover, franchisees, typically local entrepreneurs, bring invaluable market intelligence, a nuanced understanding of regional consumer preferences, and established community networks, which are vital for localization and effective customer acquisition in diverse geographies. Domino's, for instance, has strategically adapted its menu and pricing, with its "Pizza Mania" range targeting cost-conscious consumers in these cities. Lenskart, with over 550 outlets, is actively expanding in smaller cities through its LITE model, requiring a lower investment of approximately INR 20 lakhs compared to INR 35 lakhs for a regular outlet, generating monthly revenues of INR 4-6 lakhs in Tier 4 and 5 towns.
While offering substantial growth opportunities, expansion into Tier 2 and 3 cities through franchising is not without its challenges. Brands must address potential complexities in supply chain logistics, ensuring consistent product quality and timely delivery to remote locations. Effective human capital management, including training and retaining local talent, is also critical for maintaining brand standards and delivering a consistent customer experience. Despite these operational considerations, the franchise model remains a highly attractive avenue for brands aiming to build a robust distribution network and secure long-term, sustainable growth by tapping into India's rapidly expanding semi-urban and rural consumption story.
9) India's telecom sector can't afford a duopoly: Minister Scindia. Our job is to provide intense competition.
Union Minister Jyotiraditya Scindia has strongly articulated that India's telecom sector cannot sustain a duopoly, emphasizing the government's commitment to fostering intense competition. This statement comes amidst a highly consolidated market where Reliance Jio and Bharti Airtel collectively command over 70% of the wireless subscriber base (Jio at approx. 40.52% and Airtel at approx. 33.67% as of May 2025), with Vodafone Idea (Vi) struggling with significant debt of around Rs 83,400 crore in Adjusted Gross Revenue (AGR) dues, and state-owned BSNL lagging in 4G/5G rollout. The Minister's stance highlights a critical strategic concern for the sector's long-term health and consumer welfare.
The adverse implications of a telecom duopoly are manifold, extending beyond just higher tariffs for consumers. A lack of robust competition stifles innovation, reduces service quality, and limits consumer choice, leading to potential market inefficiencies and reduced consumer surplus. While India currently boasts some of the world's lowest data prices (approx. INR 9 per GB compared to a global average of $2.49), a duopolistic structure could undermine this affordability over time. Furthermore, it could deter new market entrants and reduce the incentive for existing players to make substantial capital investments in network upgrades and technological advancements like 5G and future 6G development.
To ensure a vibrant and competitive telecom ecosystem, the government is signaling a proactive policy intervention. Measures under consideration include potential relief packages for struggling operators like Vodafone Idea to prevent its collapse, as well as reforms in spectrum allocation and licensing. Minister Scindia also indicated plans to delicense 6 GHz spectrum for Wi-Fi services by August 15, aiming to bridge the digital divide and promote alternative broadband access. Such regulatory support and strategic initiatives are vital to encourage a multi-player market, drive innovation, enhance consumer benefits, and sustain India's digital transformation journey.
10) Scientists use bacteria to turn plastic waste into paracetamol.
Scientists at the University of Edinburgh have made a significant breakthrough, demonstrating that genetically reprogrammed E. coli bacteria can convert plastic waste into paracetamol. This innovative bioconversion pathway addresses the dual challenges of global plastic pollution, particularly from polyethylene terephthalate (PET) plastic bottles, and the sustainable production of a widely used pharmaceutical. The process involves chemically breaking down PET into terephthalic acid, which the engineered bacteria then transform into paracetamol through a novel fermentation process, achieving an impressive yield of over 90% within 24-48 hours and at room temperature.
This pioneering research represents a crucial step towards a more circular economy and enhanced environmental stewardship within the pharmaceutical value chain. Traditional paracetamol production heavily relies on fossil fuels, specifically crude oil derivatives like benzene and phenol, contributing significantly to greenhouse gas emissions and resource depletion. By contrast, this bacterial method offers a greener alternative, replacing petroleum-based feedstocks with waste-derived carbon sources and producing virtually no carbon emissions. It showcases how engineering biology can merge with synthetic chemistry to create 'living microbial factories,' driving value chain innovation and waste valorization.
While currently at a laboratory proof-of-concept stage, the commercial viability and scalability of this technology require further development. Challenges include optimizing the process for industrial-scale production, ensuring consistent feedstock quality from diverse plastic waste streams, and rigorous regulatory validation for pharmaceutical-grade output. Nevertheless, this breakthrough holds immense potential to disrupt conventional manufacturing paradigms, offering a sustainable supply chain for essential medicines and demonstrating a powerful new approach to waste management, transforming low-value plastic waste into high-value chemical compounds.
11) Dating app Bumble lays off 240 employees, which is 30% of its workforce. Last year it had laid off 350.
Bumble, the prominent dating app, has announced a significant organizational restructuring, leading to the layoff of 240 employees, constituting 30% of its global workforce. This aggressive workforce reduction follows a prior layoff of approximately 350 employees last year, signaling sustained pressure on the company's operating model and a strategic pivot. The repeated headcount adjustments underscore a challenging market environment for dating platforms, necessitating rigorous cost optimization and a renewed focus on core business profitability amidst evolving user engagement patterns, particularly from Gen Z demographics.
The rationale behind these extensive layoffs, as articulated by CEO Whitney Wolfe Herd, is to cultivate a leaner, more agile organization prioritizing long-term product innovation and user experience over short-term revenue growth. Despite a slight revenue decline in Q1 2025 to $247.1 million (down 7.7% year-over-year) and a marginal decrease in total paying users to around 4 million, Bumble has paradoxically raised its Q2 revenue outlook to $244-$249 million, anticipating approximately $40 million in annual savings from these cuts. These savings are earmarked for reinvestment into critical product and technology development, including exploring AI integration to enhance matchmaking quality and user safety.
From a strategic management perspective, these layoffs represent a deliberate strategic realignment aimed at improving operational efficiency and resource allocation. While such significant human capital management decisions invariably impact employee morale and talent retention, Bumble's leadership is demonstrating a commitment to organizational agility in a highly competitive market, as evidenced by similar workforce reductions by rivals like Match Group. The move reflects a broader industry trend where dating apps are re-evaluating their business models to ensure sustainable growth and profitability in a dynamic digital landscape, focusing on user stickiness and differentiated value propositions.
12) 9,800 High-Net-Worth Individuals to gain residency status in UAE in 2025. UK to see the largest net outflow of HNWIs at 16,500.
The United Arab Emirates (UAE) is projected to solidify its position as the world's leading magnet for High-Net-Worth Individuals (HNWIs) in 2025, anticipating a net inflow of 9,800 millionaires. This influx, representing individuals with investable assets of $1 million or more, underscores the UAE's strategic success in attracting global wealth. Concurrently, the United Kingdom is forecast to experience the largest net outflow globally, with an estimated 16,500 HNWIs departing, marking a significant shift in global wealth migration patterns and presenting a stark contrast in economic attractiveness between the two regions.
The UAE's strong appeal is driven by a combination of favorable fiscal policies, including a zero personal income tax, no capital gains tax, and no inheritance tax, coupled with political stability and world-class infrastructure. Its Golden Visa program, offering long-term residency for investors, has further streamlined the relocation process, positioning the Emirates as a secure and growth-oriented hub for wealth preservation and expansion. Cities like Dubai and Abu Dhabi, with their booming luxury real estate markets and robust financial centers like DIFC and ADGM, exemplify the proactive macroeconomic strategy to diversify beyond oil.
Conversely, the substantial exodus of HNWIs from the UK is primarily attributed to recent shifts in its tax regime, notably the abolition of the non-domiciled tax status and changes to inheritance tax on foreign assets. This policy realignment, coupled with broader economic uncertainties and a less competitive fiscal environment, has diminished the UK's value proposition for wealthy individuals. From an economic development perspective, the continued outflow of HNWIs could lead to a significant loss of tax revenue, reduced domestic investment, and a potential brain drain, impacting the UK's long-term economic competitiveness and global standing.
13) China plans a digital yuan hub and wider futures market access for foreign investors, as it tries to make its currency the new global reserve.
China is embarking on an aggressive strategy to elevate the renminbi (RMB) to a new global reserve currency status, leveraging key financial infrastructure reforms. A central pillar of this ambition is the establishment of a digital yuan (e-CNY) hub, designed to facilitate cross-border transactions and integrate the digital currency into international trade and finance. This initiative aims to enhance the efficiency, transparency, and accessibility of the yuan, potentially bypassing traditional SWIFT-based systems and offering an alternative for global payments and settlements, thereby challenging the established dominance of the US dollar.
Concurrently, Beijing is committed to offering wider access to its burgeoning futures markets for foreign investors. This liberalization effort targets increased foreign participation in commodity and financial derivatives, providing international players with more robust hedging and investment instruments denominated in RMB. By expanding foreign investor access to these critical markets, China seeks to deepen the liquidity and strengthen the price discovery mechanism of yuan-denominated assets. This not only makes the currency more attractive for global portfolio allocation but also fosters greater confidence in its convertibility and stability.
These strategic initiatives reflect China's long-term vision to internationalize the yuan and reduce its reliance on the dollar-centric global financial system. While the RMB currently accounts for a modest share of global foreign exchange reserves (around 2.5% as of Q4 2023), these moves represent a significant step in building the necessary infrastructure and market mechanisms to support wider adoption. The success of this ambitious undertaking will depend on sustained market liberalization, continued capital account reforms, and a high degree of transparency and rule of law, critical factors for inspiring the trust required for a truly global reserve currency.
14) Tesla EU sales fall 41% yoy in May, as it loses out to BYD and others.
Tesla's sales in the European Union experienced a significant downturn in May 2025, plummeting by 40.5% year-over-year, with total registrations falling to 8,729 units from 14,682 in May 2024. This marks the fifth consecutive month of decline for the American EV manufacturer in Europe, starkly contrasting with the overall European battery-electric vehicle (BEV) market, which grew by 27.2% during the same period. Consequently, Tesla's European market share has dwindled to just 1.2% from 1.8% a year prior, indicating a substantial loss of competitive advantage.
This notable sales slump is attributable to multiple factors. Tesla's aging product lineup, primarily the Model 3 and Model Y, faces intensifying competition from newer, more competitively priced models offered by both European legacy automakers and, significantly, Chinese manufacturers. For instance, BYD, a key rival, has seen its European sales surge by 169% in May, and its Chinese counterparts collectively increased sales by 111%, doubling their market share to 5.9%. BYD's aggressive pricing strategy, with models like the Dolphin Surf starting significantly lower than Tesla's entry-level vehicles (e.g., €19,990), along with a broader product portfolio including plug-in hybrids, resonates strongly with European consumers.
From a strategic management perspective, Tesla's challenges extend to operational inefficiencies and brand perception issues, partly linked to CEO Elon Musk's controversial public activities. While Tesla has focused on high-level initiatives like robotaxi development, its core product innovation in Europe appears to have lagged, creating a strategic vacuum that competitors are rapidly filling. This competitive intensity and market share erosion necessitate a robust strategic realignment for Tesla in Europe, demanding immediate attention to product refreshes, a more localized market approach, and a reassessment of its pricing and distribution strategies to regain momentum in this crucial EV market.
15) OpenAl is developing a productivity suite with chat and document tools challenging Microsoft Office and Google Workspace.
OpenAI is reportedly making a significant strategic pivot, developing a comprehensive productivity suite equipped with AI-powered chat and document tools, directly challenging established market leaders Microsoft Office and Google Workspace. This ambitious move signifies OpenAI's intent to evolve beyond its foundational AI models and conversational AI, like ChatGPT, into a full-fledged enterprise software provider. The rumored suite is expected to feature real-time collaborative document editing, integrated chat functionalities, and AI-powered document management, potentially even including email and calendar integrations, aiming for an "AI-native" workflow from the ground up.
This expansion is driven by a vision to transform ChatGPT into a "super-intelligent personal work assistant," leveraging OpenAI's core competency in artificial intelligence to disrupt a mature market currently dominated by Microsoft 365 and Google Workspace, which collectively hold over 95% of the productivity software market. For instance, Google Workspace alone boasts over 3 billion users, while Microsoft 365 serves around 270 million active users. OpenAI's competitive advantage lies in its ability to build an AI-first platform, potentially offering more seamless and intuitive AI integrations than rivals who are retrofitting AI into existing, legacy software.
However, OpenAI faces significant challenges in this highly competitive landscape. Key hurdles include ensuring robust data security and privacy compliance, seamless integration with diverse existing enterprise software ecosystems (e.g., CRMs, ERPs), and rapid market deployment to keep pace with the aggressive AI feature rollout by Microsoft and Google. Despite these operational complexities, OpenAI projects enterprise-level ChatGPT subscription revenue to soar from an estimated $600 million in 2024 to $15 billion by 2030, underscoring the immense commercial potential it sees in this strategic diversification.