Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On May 15th, the stock market saw mixed movements as the Sensex dropped slightly, the Nifty remained stable, and the Nifty Bank showed a larger decline. Despite some ups and downs, overall trading ended with a neutral trend.

BUSINESS

India’s Coal Share in Power Generation Falls Below 50%

What happened

For the first time since the 1960s, coal's share in India's total power generation capacity has dropped below 50%. In the first quarter of 2024, India added a whopping 13,669 megawatts (MW) to its power generation capacity, and a staggering 71.5% of this new capacity came from renewable energy sources.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), this shift aligns with a broader global trend away from coal. Even the G7 countries are on board, pledging to phase out all unabated coal power generation by 2035. This means India's transition is not just a local phenomenon but part of a worldwide move towards cleaner energy.

Why it matters

So, why should we care about these numbers? Well, India's power generation landscape is undergoing a seismic shift. With coal's share dipping below 50%, the country is well ahead of its target to achieve 50% cumulative power generation capacity from non-fossil fuel sources by 2030. 

In fiscal year 2023-24, India issued a record 69 gigawatts (GW) of renewable energy tenders, far exceeding the government's target of 50 GW per year. After the hiccups caused by supply chain issues and price spikes from the COVID-19 pandemic and Russia's invasion of Ukraine, the renewable market is back with a bang. India has now climbed to third place globally in solar power generation, trailing only behind China and the United States. 

Zoom out

India's power generation capacity is lighting up the path to a greener future, quite literally. With coal taking a backseat and renewable energy speeding ahead, the country's energy mix is transforming dramatically. Solar power, in particular, is shining bright, generating a record 5.8% of India's electricity in 2023. This is crucial for reducing the country's carbon dioxide emissions, which are significant contributors to global warming.

BIG MONEY MOVES

DLF to launch ₹25,000 crore luxury housing project in Gurugram

DLF Ltd is set to launch an opulent housing project in Gurugram's prestigious DLF Phase-5, aiming to generate an impressive ₹25,000 crore in revenue. This exclusive development, sprawling over 17 acres, will boast more than 400 high-end apartments, each ranging from 9,500 to 15,000 square feet. The project promises to offer top-notch amenities and lush landscaping, catering to the luxury market's discerning tastes.

The timing of this project aligns with DLF's robust financial performance, highlighted by a remarkable 62% increase in net profit, reaching ₹920 crore in Q1 2024.

India's trade deficit expands to $19.1 billion in April due to surging gold imports

India's merchandise trade deficit ballooned to $19.1 billion in April 2024, up from $14.44 billion a year earlier. Exports inched up by 1.1% to $34.99 billion, while imports surged by 10.3% to $54.09 billion. A key factor was a three-fold increase in gold imports, reaching $3.11 billion compared to $1.01 billion last April.

The month-on-month figures also showed a decline, with exports falling 16.1% and imports dipping 5.6%. This marks the highest trade deficit in four months, driven largely by higher global gold prices.

BUSINESS

Beyoung Ventures Into Physical Retail: Aiming for 300 Stores Nationwide

What happened

Fashion brand Beyoung, a popular name in online retail, has decided to step into the world of physical retailing. They recently opened their first store in Bhilwara, Rajasthan, marking the beginning of an ambitious plan to launch 300 outlets over the next three years. Shivam Soni, founder of Beyoung, expressed excitement about the expansion, aiming to bring quality products to more cities and introduce new categories. 

Founded in Udaipur in 2018, Beyoung has already captured a significant share of the online market in tier 2 to 4 cities. Now, they are all set to bolster their omnichannel presence and aim for a Gross Merchandise Value (GMV) of ₹650 crore by 2027.

Why it matters

Beyoung’s leap into physical retail is a significant move in the rapidly growing Direct-to-Consumer (D2C) market, which is expected to hit $100 billion by 2025. The integration of online and offline channels is becoming crucial for brands aiming to maximize consumer engagement and market penetration. Industry experts like Mandar Dandekar of Sorin Investments highlight the necessity of an omnichannel strategy for brands that started as internet-first. 

This shift mirrors trends seen in global giants like H&M and Puma, which derive a substantial portion of their revenue from online sales yet continue to expand their physical presence. The fashion and lifestyle e-commerce market in India is projected to reach $35-40 billion by 2027, with a sizable chunk coming from D2C brands.

Zoom out

Beyoung’s strategic move to open physical stores while maintaining a strong online presence is a calculated effort to tap into the vast and diverse Indian market. As youngsters in India increasingly embrace Western fashion, the blend of online and offline strategies could offer Beyoung a competitive edge.

BIG PICTURE

Frank McCourt plans bold bid for TikTok's US assets

Frank McCourt, executive chairman of McCourt Global, has announced plans to form a consortium to bid for TikTok's US business. Valued between $35 billion and $40 billion by Bloomberg Intelligence, the ByteDance-owned app has drawn diverse interest following President Biden's mandate for its sale or a potential ban. McCourt, with ambitions to enhance web ownership and control, clarified that he is not interested in TikTok's algorithm but in creating a web where users own their data and identity. 

Berkshire Hathaway unveils $7 billion stake in Chubb

Warren Buffett's Berkshire Hathaway announced a significant $7 billion investment in Swiss insurer Chubb, acquiring nearly 26 million shares for a 6.4% stake. Following the revelation, Chubb shares surged over 7%, reaching $271.82. 

Additionally, Berkshire has made notable adjustments to its portfolio, selling off over 116 million Apple shares—about 13% of its stake—to trim its largest single investment. Despite this sale, Berkshire still holds nearly 790 million Apple shares, with Buffett affirming that the iPhone maker remains a long-term holding.

BUSINESS

LG Aims to Stay on Top in TV Market with India-Specific Products

What happened

LG Electronics India is doubling down on its strategy to maintain leadership in the home entertainment segment by introducing products specifically designed for the Indian market. On Wednesday, the company launched 55 AI-enabled television models, anticipating a 25-30% growth in this segment for the year. 

The new lineup includes innovations like the world's largest 97-inch TV with advanced AI-powered picture quality. LG's focus on the Indian market is clear, as they consider it the most crucial globally.

Why it matters

LG’s tailored approach to the Indian market highlights the country's significance in the global electronics landscape. While the European and American markets have largely shifted to OLED technology, India's preference for LED technology persists, making it a unique market. This distinction has prompted LG to introduce products specifically picked for Indian consumers, ensuring that their offerings align with local preferences and needs. 

LG's market share in India’s television segment stands at 27.1%, underscoring the brand's strong foothold. The Indian TV market, valued at around ₹28,000 crore annually, offers vast opportunities for growth. With LG’s commitment to innovation and understanding of local consumer behaviour, they are well-positioned to capture a larger slice of this lucrative market.

Zoom out

With an ambitious target of 25-30% growth and a robust production capacity of 30 lakh units annually at its Pune plant, LG is geared up for significant expansion. As the Indian market continues to grow rapidly in both quantity and quality, LG’s tailored approach will likely keep them at the forefront of the industry. So, next time you're in the market for a new TV, keep an eye out for LG's latest innovations – they might just be exactly what you've been looking for!

MIRCH MASALA

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