Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Nifty index saw a day of consolidation, starting strong but experiencing profit booking later. Despite this, it closed with a modest gain of approximately 58 points, with most sectors ending positively except for FMCG and Realty.

BUSINESS

Taj Reclaims Title of World's Strongest Hotel Brand

What happened

Indian Hotels Company (IHCL), the leading hospitality firm in India, proudly announced that its renowned brand, Taj, has once again secured its position as the World's Strongest Hotel Brand . This recognition comes from Brand Finance's 'Hotels 50 2024' annual report, which acknowledges the most valuable and resilient hotel brands globally.

Taj's brand value soared by an impressive 45% to reach $545 million , earning it the prestigious AAA+ rating and positioning it as the world's strongest hotel brand. This achievement is even more remarkable as Taj also ranked as the second-fastest-growing brand globally.

Why it matters

Taj's reclaiming of the title as the World's Strongest Hotel Brand is significant for several reasons. Firstly, it shows the brand's enduring legacy and excellence in the hospitality sector, spanning over 120 years. This recognition, achieved for the fourth time and thrice as number one globally, highlights Taj's consistent commitment to unparalleled Indian hospitality on a global stage. 

The remarkable increase in brand value and the AAA+ rating reflects Taj's exceptional performance across key brand strength metrics such as familiarity, consideration, recommendation, and reputation, showcasing its strong customer appeal and trust.

Zoom out

Incorporated by Jamsetji Tata, founder of the Tata Group, IHCL opened its first hotel, The Taj Mahal Palace, in Bombay in 1903. Today, IHCL boasts a portfolio of 322 hotels , with 99 more under development globally across 4 continents, 13 countries, and over 130 locations. As India's largest hospitality company by market capitalization, IHCL is listed primarily on the BSE and NSE, showcasing its strong presence and leadership in the industry.

BIG MONEY MOVES

Siemens-RVNL team bags Bangalore metro contract

A joint effort by Siemens Limited and Rail Vikas Nigam Limited (RVNL) has secured a contract worth ₹394 crore from Bangalore Metro Rail Corporation Ltd (BMRC). The contract encompasses engineering, supply, erection, testing, and commissioning of vital infrastructure elements for phase-2A & phase 2B , including 33 KV distribution, 750V DC third rail traction electrification, traction substations, auxiliary substations, and SCADA system.

NBCC secures ₹100 Crore contract from Oil India

NBCC (India) Limited has secured a lucrative ₹100 crore contract from Oil India to construct a centralised core repository with advanced laboratory facilities in Guwahati, Assam. This project is part of several collaborations between NBCC and Oil India, which include constructing hospitals, group housing, guest houses, and installing solar rooftop panels in Assam, totalling around ₹900 crore . 

Additionally, NBCC is also working on a ₹700 crore project with Kochi Metro Rail Ltd and a ₹ 70 crore boy's hostel for Hindu College, University of Delhi. 

BUSINESS

Government Allocates ₹ 4 Trillion for Major PM Awas Yojana Expansion

What happened

The Indian government is ramping up its efforts to provide affordable housing by significantly expanding the Pradhan Mantri Awas Yojana (PMAY). The Union Cabinet has approved the construction of an additional 30 million houses—20 million in rural areas under PMAY-Gramin and 10 million in urban areas under PMAY-Urban.

This expansion is estimated to cost the Central government about ₹ 4 trillion, while state governments will contribute another ₹ 2.5 trillion. This financial commitment will be spread over the next four to five years.

Why it matters

The scheme's impact is already significant, with 26 million houses constructed since its inception. The new phase aims to further bridge the housing deficit, especially for the rural poor and the urban middle class. Notably, the cost-sharing model between the Centre and the states (6:4 in plain areas and 9:1 in North Eastern and hilly states) ensures a collaborative approach. 

The enhanced financial assistance under the revamped PMAY-G—up to ₹ 2.4 lakh per housing unit—reflects the increased cost of construction. Additionally, a new ₹ 60,000 crore interest subsidy scheme will provide a 3-6% annual interest subvention on home loans up to ₹ 5 million for urban households, offering substantial relief to the urban poor and middle class.

Zoom out

The expansion of the PMAY is a bold step towards mitigating India's housing crisis. With a blend of increased financial assistance for rural housing and interest subsidies for urban homebuyers, the government's strategy aims to cover a broad spectrum of housing needs. As the PMAY moves into its next phase, the focus remains on providing affordable, quality housing and moving closer to the goal of "Housing for All" by addressing both rural and urban housing challenges.

BIG PICTURE

EU mulls up to 38% tariffs on Chinese EVs

The European Union (EU) is considering imposing tariffs of up to 38% on Chinese electric vehicles (EVs) due to concerns about their impact on the EU's automotive industry. If discussions with Chinese authorities fail, tariffs could be implemented from 4 July. The EU's investigation targets alleged cheap, government-subsidised Chinese cars flooding the market.

Specific charges also apply to BYD (17.4%), Geely (20%), and SAIC (38.1%). This move follows the US increasing tariffs on Chinese EVs last month.

India seeks discounted oil deals with Russia

India is aiming to secure more discounted oil import deals , particularly with Russia, to provide affordable energy amid volatile markets. As the world's third-largest oil importer, India is becoming the top buyer of Russian sea-borne oil, benefiting from lower prices since Western companies halted purchases after Russia's 2022 invasion of Ukraine. 

India is also focusing on boosting domestic oil output, with initiatives to enhance production from the declining Mumbai High Field.

BUSINESS

D2C Giants Cut Ads Following ASCI Violations

What happened

Several large direct-to-consumer (D2C) brands are dialling down their advertising efforts after being flagged for misleading claims and violations of the Advertising Standards Council of India (ASCI) code. Notable among these brands is Honasa Consumer, the company behind Mamaearth, which has significantly reduced influencer posts following a wave of complaints. 

ASCI's annual report identified Honasa Consumer as the top violator with 187 infractions, including misleading claims and promotion of harmful products. Other D2C brands such as HealthKart, FirstCry, and Lenskart also made it to the list of offenders.

Why it matters

This crackdown is critical as it highlights the challenges and responsibilities brands face in the digital marketing landscape. D2C brands have heavily relied on influencer marketing to build their reputations and customer bases quickly. However, the rush to acquire customers has sometimes led to cutting corners on regulatory compliance.

ASCI's report reviewed over 10,000 complaints and investigated nearly 8,300 advertisements, uncovering the widespread issue of misleading advertising. For consumers, this means increased vigilance and scepticism about the claims made in advertisements. For the brands, it’s a wake-up call to tighten internal controls and ensure compliance with advertising standards to avoid damaging their reputation and consumer trust.

Zoom out

The reduction in advertisements and influencer posts by D2C brands like Honasa Consumer and others marks a significant shift in their marketing strategies. These brands are now focusing on enhancing their internal protocols to prevent future violations. The ASCI's stringent monitoring and subsequent actions by these brands are steps towards more honest and transparent advertising in the D2C sector. 

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