Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Despite a brief slowdown and limited new triggers, the Indian market saw modest gains last week. Optimism in growth sectors propelled mid and small-cap stocks, even as the FOMC's hawkish stance tempered rate cut expectations, aligning with stable US inflation trends.

BUSINESS

Essar to Drive Green Energy with ₹30,000 Crore Hydrogen Plant 

What happened

Essar Group announced a massive ₹30,000 crore investment to build a green hydrogen plant in Jamnagar, Gujarat. Over the next four years, this investment aims to boost the company's clean energy initiatives. Essar also plans to decarbonize its UK oil refinery, construct a green steel plant in Saudi Arabia, and develop an LNG and electric ecosystem for long-haul trucks. Additionally, they are exploring mining for critical minerals used in electric vehicle batteries and renewable energy solutions.

Why it matters

This move is a picture of a significant shift towards green energy, reflecting global trends and regulatory pressures for cleaner alternatives. 

• Essar's plan to generate 1 gigawatt of hydrogen capacity, using 4.5 GW of renewable energy, positions it as a key player in the green energy sector.
  
  

•  By focusing on green molecules instead of green ammonia , Essar aims to reduce costs and enhance efficiency. 
  

Their investment in LNG and electric trucks will drastically cut CO2 emissions, aiding in a cleaner transportation sector. With trucks being major polluters, the switch to LNG and electric trucks could reduce emissions by 60-70%.

Zoom out

Essar's comprehensive strategy, from green hydrogen to renewable energy and green mobility solutions, marks a pivotal step in its commitment to sustainability. As they explore new frontiers like shale gas and critical mineral mining, Essar's diversified approach could set new standards in the industry. 

BIG MONEY MOVES

TCS hit with $194 million penalty for trade secret misuse by US court

Tata Consultancy Services (TCS), India's largest IT services exporter, has been hit with a $194 million penalty by the US District Court in Texas for misappropriating trade secrets from Computer Sciences Corporation (now DXC Technology). The court's ruling includes $56.2 million in compensatory damages, $112.3 million in exemplary damages, and $25.8 million in prejudgment interest.

Despite this significant judgment, TCS plans to challenge the ruling, stating it has strong arguments for an appeal. The company assures that this decision will not severely impact its financials or operations.

BHEL lands ₹7,000 crore Adani Group power plant contracts

Bharat Heavy Electricals Limited (BHEL) has secured contracts worth ₹7,000 crore from the Adani Group for two power plants. The projects include a 2x800 MW Raipur supercritical thermal power plant in Chhattisgarh and a 2x800 MW Mirzapur supercritical thermal power plant in Uttar Pradesh. BHEL will handle the manufacture, supply, and commissioning of key equipment, including steam generators, turbines, and generators, produced at its Trichy and Haridwar plants. 

BUSINESS

Hybrids Gaining Ground Against EVs in Market Share Battle

What happened

Hybrid cars are surging ahead in the race for market dominance, with sales of hybrid cars and SUVs witnessing a sharp uptick. HEVs are forecasted to experience a robust 38% growth, reaching 22,389 units and capturing 2.1% of the market. Meanwhile, EVs are anticipated to see a slight dip to 27,242 units. This trend is not limited to India but reflects a global pattern, where HEVs and PHEVs are outpacing EVs, especially evident in the US market.

Why it matters

Despite the long-term environmental benefits of EVs, hybrids present a practical and cost-effective solution in the present scenario. The superior fuel efficiency, lower operational costs, and reduced emissions of hybrids make them an attractive choice for consumers. Automakers like Toyota and Tata Motors are recognizing this trend and are investing significantly in HEV technologies, aligning with emission standards and environmental goals .

Zoom out

The rise of hybrids against EVs signals a shift in the automotive market. With HEVs offering competitive advantages such as higher profitability and compliance with stringent emission norms, automakers are placing their bets on hybrid technologies. Despite policy incentives favouring EVs, the market's preference for hybrids showcases a balanced approach towards adopting eco-friendly transportation solutions.

BIG PICTURE

Havells to invest ₹60 crore in AC manufacturing expansion

Havells India, through its Lloyd brand, is set to invest ₹ 50-60 crore to boost its air conditioner manufacturing capacities. The expansion will increase production at the Ghiloth and Sricity plants to 15 lakh units annually, up from the current 9 lakh and 11.2 lakh units respectively, to meet rising demand. Funded through internal accruals, the project is expected to be completed by Q4 FY2025.

The brand also launched new designer ACs, rapid-cooling refrigerators, and washing machines, and expanded its Google QLED TV lineup.

Delhivery and Xpressbees expand into quick-commerce to meet soaring demand

Delhivery and Xpressbees are diving into the fast-growing quick-commerce sector to capitalise on increasing demand. Delhivery, India’s leading third-party logistics firm, is now managing larger warehouses for Swiggy Instamart, which supplies smaller fulfilment centres within cities. Pune-based Xpressbees is also exploring opportunities in this sector, working with multiple partners to enter the market.

The quick-commerce boom, driven by platforms like Swiggy Instamart, Blinkit, and Zepto, is pushing logistics firms to adapt. 

BUSINESS

Paytm's Potential Sale of Ticketing Business to Zomato

What happened

Paytm, the renowned fintech company, is in advanced negotiations with Zomato to sell its movie and events ticketing business . This move comes as part of Paytm's strategy to recover from declining sales and regulatory impacts that led to its first sales decline in history. The discussions with Zomato are progressing well, although other potential buyers are also interested in the business. 

Why it matters

Paytm has kept its movie and events ticketing business figures under wraps, choosing not to reveal standalone numbers.

• However, the company disclosed its fiscal year sales for 2024, which totalled a substantial 17.4 billion rupees ($208 million). 

This revenue was generated from Paytm's broader marketing services sector, encompassing movie and events ticketing, alongside credit card marketing and gift vouchers. This financial insight suggests the role played by these sectors within Paytm's overall business portfolio.

Zoom out

If finalised, this acquisition by Zomato would mark a significant step in its growth journey, adding to its portfolio after the acquisition of Blinkit in 2021. For Paytm, the sale would allow it to concentrate on essential sectors like travel and cash backs, essential for sustaining and expanding its customer base. 

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