Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Hindalco Industries, BPCL, Shriram Finance, Tata Steel, and LTIMindtree led the Nifty gainers, while M&M, Bajaj Auto, Axis Bank, IndusInd Bank, and SBI Life Insurance were the top losers. Most sectoral indices closed higher, with healthcare, IT, metal, oil & gas, power, telecom, and media up 0.5-2 percent, while auto and bank indices declined.

TOP STORIES

Tata’s New iPhone Hub in Hosur

What happened

Tata Electronics is set to kick off iPhone production at its ₹6,000 crore facility in Hosur, Tamil Nadu, by November 2024. This new plant marks Apple's fourth assembly site in India and Tata's second venture into iPhone manufacturing.

The facility, sprawling across 250 acres, is gearing up to host around 20 assembly lines and will employ about 50,000 workers, predominantly women. Preparations are in full swing, with the site already producing enclosures for iPhones exported to China.

Why it matters

This development is a significant step in Apple's strategy to reduce its reliance on China by diversifying its manufacturing operations across India and other regions. The Hosur plant not only strengthens Apple's supply chain localisation but also deepens its collaboration with Tata, a partnership that has already seen Tata take over Wistron Corp's iPhone unit in Karnataka.

With plans to produce over 50 million iPhones annually in India within the next few years, this facility plays a critical role in Apple’s ambitious growth strategy in the country.

Final words

Tata’s leap into iPhone manufacturing is just the tip of the iceberg in its ambitious partnership with Apple. The conglomerate, known for its diverse ventures from salt to software, is not only ramping up production at its Hosur facility but also expanding its retail footprint with plans for 100 dedicated Apple stores. Meanwhile, Apple is matching Tata’s enthusiasm by opening two new stores in India and planning three more.

PAISON KA KHEL

Quick commerce breaks records on rakhi sales

During Raksha Bandhan 2024, quick commerce platforms Blinkit and Swiggy Instamart shattered records, reflecting a significant shift in consumer behaviour. Blinkit reached an astonishing 693 Rakhis sold per minute, its highest-ever order rate, while Swiggy Instamart reported a fivefold increase in Rakhi sales compared to last year. 

Furthermore, Blinkit expanded its services internationally, catering to customers in six countries, including the USA and Canada. 

BoB bags ₹5,000-crore SAIL loan with a steely offer

Bank of Baroda (BoB) clinched a ₹5,000-crore loan deal with state-run steel giant SAIL, outshining its public and private sector rivals. BoB's competitive edge? A tempting 7.49% interest rate over five years, linked to the 364-day treasury bill. SAIL, with its Maharatna status, drew intense competition, but BoB's razor-sharp bid won the day.

While BoB’s margins may have slimmed down—like a steel beam on a diet—the bank's loan portfolio is now bulkier than ever. 

TOP STORIES

India’s Alcohol Market Buzzing with Growth

What happened

India’s alcohol market is raising eyebrows globally. The country, known for its love of whisky rather than beer, is set to lead the global alcohol industry’s value growth. According to the IWSR report released on August 15, India is expected to contribute around $7.6 billion in incremental value by 2028, alongside the US.

While the US market grows at a modest 0.8% annually, India is zooming ahead with a projected growth rate of over 4% per year. This rapid expansion is driven by an increasing number of legal drinkers—around 65 million in the next five years.

Driving the news

India’s burgeoning alcohol market isn’t just a local affair; it’s making waves on the global stage. The country’s appetite for premium whiskies, particularly those blending Indian spirits with Scotch malt, is fueling this growth. In 2023, categories like Scotch and US whiskies saw a 7% increase in volumes. With premiumisation sweeping across brands, from whisky to rum, India is not just consuming but also exporting high-end alcohol. 

Companies like DesmondJi are ramping up production to meet domestic and international demand, showcasing India’s shift to a significant player in the premium alcohol sector. Additionally, favourable state regulations are boosting the industry, with Karnataka and Uttar Pradesh leading in excise duties.

Final words

India’s ascent in the global alcohol market is no mere hangover from past successes. The country is positioning itself as a powerhouse in the industry, driven by a youthful drinking demographic and an evolving regulatory landscape. Despite some challenges like inflation and geopolitical tensions, India’s alcohol sector is on a high, with robust consumer spending and a clear trajectory of growth. 

GLOBAL NAZARA

Texas Instruments to receive $1.6 billion boost under CHIPS Act

Texas Instruments is set to receive up to $1.6 billion from the U.S. Commerce Department to build three new chip factories—two in Texas and one in Utah. This funding, part of the CHIPS and Science Act, supports TI’s $18 billion investment to expand domestic production by 2029, creating 2,000 jobs.

TI also expects to snag $6-8 billion in tax credits and $10 million for workforce development. With this, CEO Haviv Ilan aims to achieve 95% in-house manufacturing by 2030. 

AMD makes a $5 billion AI power play to take on Nvidia

AMD is making a bold move in the AI space by acquiring ZT Systems for $4.9 billion. This strategic deal, set to close by mid-2025, is designed to strengthen AMD's AI capabilities, positioning it to challenge industry titan Nvidia. By integrating ZT Systems, AMD aims to accelerate the deployment of cutting-edge AI infrastructure.

TOP STORIES

Licious Swaps Digital for Brick-and-Mortar

What happened

Licious, the unicorn of the meat and seafood world, is trading its virtual shelves for some real estate. After conquering the online market, this startup, fueled by heavyweight investors like Temasek and Multiples, is opening its second offline store in Bengaluru by the end of August. The plan? To slice through the competition with 25 new stores by FY25, focusing primarily on the Bengaluru market.

Why it matters

The company’s online sales are a juicy 80% of their revenue, but they’re adding offline stores to spice up their strategy. 

• With annual sales currently at ₹950 crore, Licious is aiming to beef it up to ₹1,200 crore by March 2025. 
  

It’s all about mixing the best of both worlds: online convenience and offline charm. This omnichannel approach is designed to satisfy those who crave the tactile thrill of shopping for their meat in person, while still offering the speedy delivery and digital perks that made Licious famous.

Zoom out

As they plan to scale and achieve profitability by the end of FY25, this move could turn the tables in the meat and seafood market. And if their offline venture cooks up well, expect Licious to crank up the expansion dial to 70-100 stores annually. For those who prefer their meat shopping with a side of face-to-face service, Licious has you covered!

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