Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets traded quietly after Thursday’s surge and ended nearly unchanged, with the Nifty briefly touching the new milestone of 23,000. Over the past two weeks, both the Nifty and Sensex recorded their biggest gains in five months, rising by 4%.

BUSINESS

Flipkart Receives $350 Million Investment from Google

What happened

Flipkart has secured a $350 million investment from Google, adding the tech giant as a minority investor in its latest funding round led by Walmart valuing  Flipkart at $36 billion. Despite the hefty investment, Google won't have a seat on Flipkart’s board. The collaboration is set to bolster Flipkart’s business expansion and enhance its digital infrastructure, according to a company statement.

This isn't Flipkart's first big-tech partnership; in 2017, it teamed up with Microsoft to use Azure as its public cloud computing platform.

Why it matters

This investment signifies Google’s growing interest in the e-commerce sector and highlights Flipkart’s strong market position. With this new funding, Flipkart aims to expand its quick commerce capabilities, addressing its historical challenge of slow deliveries. 

While competitors like Amazon benefit from fragmented warehouses that enable 24-hour delivery, Flipkart's larger warehouse model has lagged in speed. Google’s cloud expertise is expected to modernize Flipkart’s infrastructure, enhancing its AI, machine learning, and analytics capabilities. This strategic move comes as Flipkart eyes a potential IPO, with discussions about moving its domicile from Singapore to India.

Zoom out

As Flipkart accelerates its quick commerce initiatives and expands same-day delivery to 20 cities, this collaboration aims to make the company more competitive against rivals like Amazon. Despite reporting increased revenues of ₹55,823 crore in FY23, Flipkart also faced widening losses of ₹4,897 crore. Flipkart's expansive reach of over 500 million users, coupled with its diverse product range, positions it for substantial growth in the market.

BIG MONEY MOVES

Saudi Arabia plans $10 billion Aramco share sale in June

Saudi Arabia is gearing up for a significant share sale in energy giant Aramco, aiming to raise around $10 billion in one of the region's largest stock deals. The offering, slated for June, will list shares in Riyadh and is expected to be a fully marketed offering rather than a quick sale. Banks like Citigroup, Goldman Sachs, and HSBC are set to manage the sale.

This move aligns with Saudi Arabia's Vision 2030, emphasizing private sector expansion and non-oil growth. Aramco, despite lower earnings, remains crucial to the Saudi government's economic strategy.

JSW Paints turns profitable, eyes ₹5,000 crore sales 

JSW Paints has achieved its first operating profit since its launch in 2019, crossing ₹ 2,000 crore in revenue for FY24. The company now aims for ₹5,000 crore in revenue by FY26, expanding its presence in the home decorative and industrial coating markets. Joint Managing Director & CEO Sundaresan AS emphasized their plan to grow 5-10 times faster than the market, adding 2,000 to 2,500 retailers annually to their current network of 6,000.

With ₹ 900 crore already invested, JSW Paints is set to compete vigorously in the rapidly growing Indian paints industry.

BUSINESS

GAIL Commissions 10 MW Green Hydrogen Plant in Madhya Pradesh

What happened

GAIL (India) Ltd, the country's largest natural gas transmission and distribution firm, has commissioned its first green hydrogen plant in Vijaipur, Madhya Pradesh. This plant features a 10-megawatt proton exchange membrane electrolyser imported from Canada, marking a significant milestone for GAIL’s entry into green energy. The plant is set to produce about 4.3 tonnes of green hydrogen per day with a purity of 99.999%. 

By utilizing renewable energy sources like solar power to split water, GAIL is aligning with India's National Green Hydrogen Mission, which aims to achieve 5 million tonnes of green hydrogen production annually by 2030.

Why it matters

This development is a big step for India’s renewable energy ambitions. With the world increasingly looking to reduce carbon emissions, green hydrogen presents a cleaner alternative to traditional fuels. GAIL’s new plant is not just a testament to technological progress but also a nod to India's commitment to sustainable energy. 

Initially, the hydrogen produced will be used alongside natural gas in GAIL’s own operations. However, there are plans to distribute it to retail customers in nearby areas. To support this green hydrogen production, GAIL is also setting up around 20 MW of solar power plants at Vijaipur, ensuring a steady supply of renewable energy.

Notably, the government's efforts have yielded tangible outcomes, evident in the allocation of incentives through tenders, which will foster the production of 412,000 tonnes per annum of green hydrogen.

Zoom out

As the country intensifies its focus on hydrogen as a sustainable fuel, this plant sets a precedent for future projects. The blend of hydrogen with natural gas, currently being tested in Indore, might expand, paving the way for broader applications. 

BIG PICTURE

JLR to assemble flagship Range Rover in India

Jaguar Land Rover (JLR) is set to assemble its flagship Range Rover model in India, marking a significant move to tap into the country's luxury car market. The local production will lead to a notable 18-22% price drop, making the Range Rover more accessible to Indian buyers. The Range Rover will drop from ₹ 3.3 crore to ₹ 2.6 crore, and the Range Rover Sport from ₹ 1.8 crore to ₹ 1.4 crore.

BharatPe and PhonePe resolve trademark dispute

BharatPe and PhonePe have settled their long-standing legal disputes over the trademark suffix 'Pe.' The fintech companies announced on May 26 that they had resolved their conflicts amicably, ending five years of litigation across multiple courts. The settlement includes withdrawing all opposition in the trademark registry and complying with obligations in the Delhi and Bombay High Courts.

BharatPe Chairman Rajnish Kumar praised the move, highlighting the professionalism and cooperation between the companies, allowing them to focus on strengthening digital payment systems

BUSINESS

RIL Ventures into Africa with 5G Tech Solutions

What happened

Reliance Industries Ltd (RIL) is making its mark in Africa's telecom landscape through its subsidiary Jio Platforms Ltd (JPL). Radisys, a JPL-owned entity, is teaming up with Tech Mahindra and Finland’s Nokia to collaborate with Next-Gen Infrastructure Co. (NGIC). This Ghana-based company, supported by the Ghanaian government, Ascend Digital, and K-Net, is set to become Africa's first neutral 5G shared infrastructure provider.

NGIC will initially focus on deploying 4G and 5G network support in Ghana, with plans to expand across Africa. The project involves a $200 million investment over three years to scale up the network, offering shared infrastructure to local telecom operators.

Why it matters

This collaboration is a significant milestone for RIL, marking its entry into the global telecom tech and equipment market. The investment will help NGIC provide cost-effective 4G and 5G networks, leveraging JPL’s 5G software stack based on Open-RAN technology. 

This setup is particularly appealing to mobile network operators (MNOs) aiming to reduce capital and operational expenditures. By using a Network as a Service (NaaS) model, NGIC aims to replicate India’s successful low-cost, high-speed data model, promoting digital inclusion and economic growth in Africa. The partnership also signifies increasing Indian influence in Africa's telecom sector, previously led by Bharti Airtel, which operates in 14 African countries.

Zoom out

This initiative aligns with Mukesh Ambani’s vision of exporting Jio’s 5G solutions worldwide. With Radisys at the helm, NGIC is set to revolutionize the African telecom industry, starting with Ghana. The project’s success could pave the way for similar ventures across the continent, making advanced network technologies accessible and affordable. 

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