Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets remained closed on April 17 on account of RamNavmi.

BUSINESS

World Bank Pledges $1 Billion Credit Line to SBI for Green Energy

What happened

The World Bank is set to extend a substantial $1 billion line of credit to the State Bank of India (SBI) to boost the expansion of Battery Energy Storage Systems (BESS) and electric mobility in India. This move is aimed at accelerating the country's transition towards green energy and reducing dependence on imported fossil fuels.

Why it matters

The proposed credit line will play a crucial role in attracting early investments and mobilizing private capital for sustainable energy projects. India's aggressive target of adding 50 gigawatts (GW) of green energy capacity annually, aiming for 500 GW of renewable capacity by 2030, requires substantial investments and collaborative efforts.

The proposed credit line will attract crucial early investments, mobilize private capital, and provide subsidized financing, addressing key challenges such as high costs and limited expertise in the battery storage sector.

Furthermore, the funding will contribute to reducing greenhouse gas emissions, enhancing air quality, and decreasing dependence on imported fossil fuels. It aligns with India's commitment to achieving 50% of installed power generation capacity from non-fossil fuel-based sources by 2030, 

Zoom out

The World Bank's funding injection into India's green energy sector signifies a significant step towards achieving renewable energy targets and promoting electric mobility. This collaboration between international financial institutions and domestic entities like SBI underscores a collective effort towards building a greener and more resilient energy infrastructure for India's future.

BIG MONEY MOVES

Adani Family boosts stake in Ambuja Cements with ₹8,339 crore investment

Billionaire Gautam Adani and his family have infused an additional ₹8,339 crore into Ambuja Cements, raising their stake in the major cement-producing firm to 70.3%. This investment comes as part of a series of infusions, including ₹5,000 crore in October 2022 and ₹6,661 crore in March 2024, aimed at enhancing their ownership in the company.

The Adani group's entry into the cement sector began in 2022 with a landmark $10.5 billion deal to acquire Ambuja and ACC from Swiss giant Holcim. Since then, their strategic investments have steadily increased their influence in India's cement industry.

GPS Renewables secures $50 Million for biofuel projects

GPS Renewables, a Bengaluru-based renewable energy firm, has successfully secured $50 million (approximately ₹411.50 crores ) in debt financing. This funding, obtained from a mix of private and public sector banks as well as non-banking financial companies such as Punjab National Bank, HDFC, Yes Bank, and HSBC Bank, marks a crucial step for GPS Renewables in its nationwide execution of compressed biogas (CBG) plants.

With over 100 biogas plants already established and an impressive order book totalling $240 million, along with Memorandums of Understanding (MoUs) worth $540 million for upcoming CBG plant executions , the company's growth trajectory is robust.

BUSINESS

Vedanta Secures ₹3,900 Crore Loan for Power Expansion

What happened

Mining giant Vedanta Ltd has finalised a significant 11-year term loan worth ₹3,918 crore from Power Finance Corporation Ltd (PFC). This strategic financial arrangement comes as Vedanta ramps up its power business expansion in India, aiming to boost its operating capacity to 4.8 GW by fiscal year 2027.

Vedanta's ongoing focus on its power strategy is particularly noteworthy amidst the group's ongoing demerger process. The company's efforts in the energy generation sector have gained traction over the past few years, showcasing a commitment to sustainable growth and strategic expansion.

Why it matters

This investment from PFC represents a critical milestone for Vedanta's power business plans. This capital injection will be instrumental in accelerating the completion of key power projects, including the newly acquired assets from Meenakshi Energy Ltd and Athena Power in Chhattisgarh.

• Vedanta has acquired two plants -- Meenakshi Energy Ltd in Andhra Pradesh with a capacity of 1 GW, and Athena Power in Chhattisgarh with a capacity of 1.2 GW.
  
  

• Furthermore, Vedanta's increasing emphasis on energy generation aligns with broader industry trends towards renewable and sustainable power solutions.

The company's strategic partnerships and financial backing from institutions like PFC demonstrate confidence in Vedanta's growth trajectory and its ability to navigate complex market dynamics.

Zoom out

As Vedanta continues its demerger process to unlock value across its various business verticals, including metals, power, and oil and gas, investors and industry stakeholders are closely monitoring the company's strategic moves. The infusion of funds and focus on sustainable energy solutions position Vedanta as a key player in India's evolving power sector landscape.

BIG PICTURE

☀️  Apple collaborates with CleanMax for 14.4 MW solar projects in India

Tech giant Apple has joined hands with Mumbai-based solar energy provider CleanMax to invest in six rooftop solar projects in India. These projects, with a combined output of 14.4 megawatts (MW), will power Apple's offices, stores, and domestic operations.

While smaller compared to its US and Spain projects, where Apple targets 132MW and 105MW of solar energy by 2024, this move reaffirms Apple's commitment to clean energy. With a goal of carbon neutrality by 2030, Apple's solar investments in India contribute to a greener future.

Apple's environmental efforts extend to water replenishment in Telangana and Maharashtra, showcasing its dedication to sustainable practices amidst industry-wide net-zero goals.

✂️  Toshiba plans 7% job cut in Japan, targets 5,000 positions

Toshiba Corp. is set to reduce its workforce by around 5,000 jobs, approximately 7% of its headcount in Japan. This move is part of Toshiba's strategy to accelerate restructuring efforts, focusing on core businesses like infrastructure and digital technology.

The Tokyo-based company expects a one-time cost of roughly ¥100 billion ( $650 million) due to this restructuring. This decision aligns with recent trends, as several other Japanese firms, including Shiseido Co., Omron Corp., and Konica Minolta Inc., have also announced job cuts.

Toshiba plans to offer voluntary retirements primarily in back-office departments. The company aims to finalise details of the restructuring in its upcoming midterm strategy announcement.

BUSINESS

DS Group's Catch Spices Hits ₹ 1,000 Crore Sales Milestone

What happened

DS Group announced that its popular brand Catch Spices has achieved a significant milestone by crossing the ₹1,000 crore mark in sales. This achievement underscores Catch's rapid growth, with a 24% year-on-year increase over the past two years. The brand's extensive reach now spans over seven lakh retail touchpoints and involves 1,500 distributors across the country.

Why it matters

Catch Spices' achievement of crossing ₹ 1,000 crore in sales holds significant importance beyond financial metrics. 

• It showcases DS Group's strategic agility in responding to evolving market dynamics and consumer preferences. 
  
  

• The company's focus on expanding into second and third-tier cities aligns with India's growing urbanisation trend, where these markets are becoming increasingly lucrative for consumer goods companies. 
  
  

• Additionally, DS Group's decision to diversify its product portfolio with offerings like ready-to-cook pastes and gourmet gravies reflects a proactive approach in meeting diverse culinary needs.

The packaged spices sector's estimated value of ₹ 34,000 crore, with an impressive 18% annual growth rate, underscores the immense potential and competitiveness of this market. 

Zoom out

DS Group's Catch Spices crossing the ₹1,000 crore sales mark is a testament to its brand strength and consumer trust. The company's organic growth approach, coupled with its diverse product portfolio and focus on regionalisation, positions Catch as a key player in the spices segment.

This achievement not only adds to DS Group's overall revenue success but also sets a promising trajectory for future growth and market leadership in the food industry.

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