Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian markets stumbled alongside global uncertainties, as investors anxiously await key US economic data. Concerns about a potential delay in a Fed rate cut, combined with weak Asian markets and negative Dow Futures, led to widespread profit-taking, causing the benchmark Sensex to fall below the crucial 73,000 mark.

BUSINESS

Tata & Taiwan's PSMC to Pioneer India's First Semiconductor Fab

What happened

The Union Cabinet has paved the way for a game-changing development in India's technology landscape by approving three semiconductor plant proposals. These proposals, with an estimated investment of ₹1.26 lakh crore, signify a significant leap in the country's semiconductor capabilities. 

At the forefront of this development is the creation of India's inaugural semiconductor fabrication plant, a collaborative effort between Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC) projected at ₹91,000 crore.

The other two projects include

• Tata Semiconductor Assembly and Test Limited’s ₹27,000 crore chip assembly and testing unit in Assam.
  
  

• CG Power’s ₹7,600 crore semiconductor unit in Gujarat's Sanand in partnership with Japan's Renesas.

Why it matters

The implications of these ventures extend far beyond the substantial investments and cutting-edge technology they bring. 

• The joint ventures are poised to directly employ 26,000 individuals and indirectly create job opportunities for nearly 1 lakh people. 
  
  

• India’s first plant is geared to produce 300 crore chips annually, catering to industries such as high-performance computing, electric vehicles, defence, and consumer electronics.

The approved semiconductor units will not only catalyze employment creation in advanced technology but also stimulate downstream industries like automotive, electronics manufacturing, telecom, and industrial manufacturing. The government's India Semiconductor Mission has achieved remarkable success, fostering the establishment of a robust semiconductor ecosystem within a short timeframe.

Zoom out

The significance of these strides becomes even more apparent when considering the ripple effect on India's economic growth. These ventures are not just technological milestones; they're instrumental in positioning India as a formidable player in the global semiconductor domain. The employment generation, the technological advancements, and the economic boost collectively align with India's vision for a technologically robust future.

BIG MONEY MOVES

 Man Industries Secures Rs 555 Crore Order for Pipes

Man Industries (India) Limited has clinched a significant order, valued at approximately ₹55 crore, for the supply of diverse pipes. This reinforces the company's executed order book, reaching around ₹2000 crore. The order, to be fulfilled within the next 6 months, highlights the robust business environment and underscores the trust customers place in the company's technological and execution prowess.

Earlier this month, Man Industries bagged additional orders worth around ₹525 crore, reflecting the company's advanced capabilities and ambitious plans.

Adani Energy Solutions aims for $400 million boost in overseas bonds

Adani Energy Solutions, a part of Gautam Adani's conglomerate, aims to raise around $400 million through private overseas bond placement in the next three months. The funds will be utilized for debt obligations falling this year. This move follows scrutiny since the 2023 crisis triggered by Hindenburg Research's allegations.

Adani, spanning from ports to coal, has regained market confidence after winning new equity backing and refinancing $3.5 billion in debt for Ambuja Cements Ltd. and ACC Ltd. The conglomerate's bonds have largely recovered, addressing concerns about fund-raising abilities. 

BUSINESS

Zepto Launches Zepto Pass Subscription Service

What happened

In a strategic move to stay ahead in the competitive quick commerce market, Zepto, founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, has rolled out its subscription service, Zepto Pass. This new offering aims to intensify the competition in India's rapidly growing quick commerce sector.

Zepto Pass, priced between 19 and 39 rupees per month, offers subscribers unlimited free deliveries and up to 20% off on grocery items. The company conducted a successful pilot with 5% of its user base, revealing that Zepto Pass subscribers significantly increased their spending by over 30%, with a 10% boost in monthly retention.

Why it matters

Devendra Meel, VP of Strategy and head of Zepto Pass highlighted that the subscription service is designed to encourage customer adoption of quick commerce. 

• Zepto anticipates attracting a million subscribers within a month of the rollout. 
  
  

• India's quick commerce market is projected to reach $5.5 billion by 2025, showcasing the immense growth potential.

The company believes that, despite offering attractive discounts, profitability will improve through supply chain efficiency, allowing it to sustainably pass value back to customers.

CEO Aadit Palicha emphasized the potential of the subscription model to raise the average order value (AOV), offsetting discount costs through a combination of company and brand funding. With Zepto's focus on reducing supply chain costs, improving productivity metrics, and minimizing wastage, the company stands in a favourable position to absorb short-term hits.

Zoom out

Zepto's subscription service launch aligns with the broader trend in the quick commerce sector, where companies strive to meet customer demands, expand market presence, and diversify product offerings. In this highly competitive landscape, Zepto competes with major players like Swiggy's Instamart, BigBasket's BBNow, Zomato's Blinkit, and Google-backed Dunzo.

BIG PICTURE

🍟 PepsiCo's Lay's Chips set ambitious growth goals in India's snack market

PepsiCo India aims to increase its presence in the ₹9,000 crore potato chips market, where its Lay's brand holds a dominant position. The company recently launched Lay's Shapez Heartiez to tap into the ₹1,800 crore pellet-based chip market, targeting high double-digit growth. PepsiCo's strategic moves include the 2022 launches of Lay’s Gourmet and Lay’s Sizzlin Hot, contributing to its market share gain in India's savoury snacks sector in 2023.

✈️ Air India Express targets a 40% surge in flight operations

Low-cost carrier Air India Express is set to expand its operations by 40% in the next fiscal year, driven by fleet expansion. Plans include launching flights to Nepal, Bangladesh, and Sri Lanka in the upcoming summer schedule. The company also aims to complete the acquisition of its 50-plane Boeing 737 Max order by December, with 13-14 planes already inducted.

Additionally, the merger with AirAsia India is expected in the second quarter, integrating all of AirAsia India's fleet under Air India Express's air operator permit by July-August.

BUSINESS

Coal India and BHEL Unite for 'Coal to Chemicals' Business Bash

What happened

Coal India and Bharat Heavy Electricals Ltd (BHEL) have inked a deal to venture into the ‘coal to chemicals’ business. The joint venture will kick off with a 2,000 tonnes per day ammonium nitrate plant as part of a larger coal gasification project.

Under the agreement, Coal India will hold a 51% stake, while BHEL will take the remaining 49%. The joint venture, registered in Odisha, will operate as a "private limited" company with an initial paid-up share capital of Rs 1 lakh.

Why it matters

This move is a strategic step towards diversification, as the joint venture aims to set up an ammonium nitrate plant, tapping into the coal-to-chemicals sector.

• The choice of Pressurized Fluidized Bed Gasification technology by BHEL indicates a commitment to cutting-edge methods.
  
  

• Coal India's majority ownership signals its push for backward integration, securing raw materials and reducing dependency on ammonium nitrate imports.
  
  

• Coal India's commitment to offtake 75% of the rated annual capacity showcases a strategic alignment between production and consumption.
  
  

• The estimated project cost of ₹11,782 crore for the coal-to-ammonium nitrate project in Odisha adds weight to the scale and significance of this initiative.

The Union Cabinet's approval of joint venture projects for coal gasification between Coal India and GAIL, and Coal India and BHEL, signifies governmental support and underscores the national importance of gasification.

Zoom out

In a collaborative effort, Coal India and BHEL's joint venture steps into the realm of 'coal to chemicals,' indicating a paradigm shift in India's energy landscape. As the country moves towards operationalising these ventures by 2028-29, this marks a significant stride in India's pursuit of energy independence and technological innovation.

MIRCH MASALA

🌊 Scientists unveil thriving ecosystems in underwater mountains in Chile

🎞️ Ileana D'Cruz in 'Tera Kya Hoga Lovely' trailer faces backlash

🎄 Christmas tree toss costs Irish woman $820,000 in lost injuries claim

👀 Sania Mirza's Instagram fun with a relatable blurred vision meme

🧳 Rihanna's luggage reaches Anant Ambani's pre-wedding events, sparking laughter