Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The BJP's landslide victory in Maharashtra's state elections sparked a strong rally in Indian equity markets on Monday. Sectors like oil & gas, realty, capital goods, and PSU banks led the gains, with investors optimistic about the impact of BJP’s policies on infrastructure, urban development, and manufacturing.

TOP STORIES

Tata Cliq Shifts to Fashion, Revenue Takes a Hit

What happened?

Tata Cliq, now rebranded as Tata Cliq Fashion, saw its revenue fall 42% in FY24 to ₹247 crore, down from ₹430 crore the year before. The decline came after it exited the electronics business, transferring it to Tata Neu. Revenue has been sliding for two years now—it was ₹844 crore in FY22. 

On a positive note, losses shrank to ₹391 crore in FY24 from ₹874 crore last year. 

Driving the news

Tata Cliq’s move from an all-in-one marketplace to a fashion-focused platform highlights its attempt to carve a niche in India’s fiercely competitive e-commerce space, dominated by players like Myntra and Ajio. 

However, the revenue drop signals growing pains, with sales slipping to nearly a third of what they were two years ago. The company’s borrowings have surged 12 times to ₹517 crore, while negative equity of ₹183 crore casts doubt on its financial health. 

Zoom out

Tata Cliq is focusing on fashion and beauty by launching the Palette app and opening two beauty stores in Navi Mumbai and Pune. This is part of its plan to expand its offerings.

However, the company faces big challenges. The Tata Group has paused further investments until Tata Cliq becomes profitable. This puts pressure on the company to show results. Tata Cliq’s success will depend on how well it executes its growth plans and builds strong brand partnerships.

PAISON KA KHEL

Smoother travel and greener skies with railway expansion

The Cabinet has approved a ₹7,927 crore plan to upgrade railway tracks in Maharashtra, Madhya Pradesh, and Uttar Pradesh. This includes adding lines on busy routes and expanding the Manmad-Jalgaon section with ₹2,773 crore.

The upgrades will make travel smoother for pilgrims heading to Varanasi, Nashik, and Shirdi, while boosting tourism to spots like Ajanta Caves and Keoti Falls. Plus, freight capacity gets a big boost with 51 million tonnes more annually.

• The project will cut CO2 emissions by 271 crore kg, equal to planting 11 crore trees.

Maruti Suzuki targets 7.5 lakh exports by 2030

Maruti Suzuki plans to export 7.5 lakh vehicles by 2030-31. So far, it has sent 30 lakh cars to different countries, and with strong demand and support from the government’s “Make in India” plan, it’s ready to expand further.

This year, Maruti shipped over 1,80,000 cars, showing a 17% growth. Popular models like Fronx, Jimny, Baleno, and Dzire are leading the way. With 17 models being exported to nearly 100 countries, Maruti is on track to boost its global presence even more!

TOP STORIES

HUL Scoops Out Its Ice-Cream Business Into a New Firm

What happened?

Hindustan Unilever Ltd (HUL) has decided to spin off its ice-cream business into a separate company. On Monday, the board gave initial approval for the demerger, with plans to finalise the details early next year. 

Shareholders will receive shares in the new company based on their current HUL holdings. The ice-cream segment, which brings in ₹1,800 crore annually (3% of HUL’s ₹60,000 crore revenue), includes popular brands like Kwality Wall’s, Cornetto, and Magnum.

Why it matters

The new ice-cream company will have a dedicated team and more freedom to focus on growing in the ₹15,000 crore frozen treats market. HUL’s ice-cream business is already India’s second-largest, with a 15% market share, though it still trails Amul’s 35%. 

The move follows Unilever’s global plan to separate its ice cream operations. But to run this business independently in India, HUL will need to build new capabilities, as the brand and technology currently belong to Unilever.

Zoom out

The move aims to unlock value by allowing the ice-cream business to have a more focused management and greater flexibility in executing its strategies. This decision follows months of evaluation and is expected to create a leading ice-cream company in India, leveraging brands like Kwality Wall’s, Cornetto, and Magnum.

The demerger is expected to boost growth and profitability while allowing HUL shareholders to benefit from both entities.

GLOBAL NAZARA

TIPS Music teams up with TikTok 

TIPS Music, one of India’s top music labels with over 31,000 songs, has signed a strategic partnership with TikTok to promote its extensive music library worldwide. This deal will give TikTok users access to Bollywood hits and regional music, catering to the growing global demand for Indian tunes. TIPS Music aims to expand its reach, especially among Non-Resident Indians and expatriates, leveraging TikTok's massive user base. 

UPI fraud hits new highs: 85% rise in FY24

UPI frauds surged by a whopping 85% in FY24, with incidents jumping from 7.25 lakh to 13.42 lakh. The total value of these frauds hit ₹1,087 crore, almost double the previous year's ₹573 crore.

As UPI transactions soar—up by 57% to 13,113 crore—fraud cases are keeping pace. But fear not! The government is stepping up security with measures like AI-powered fraud detection, PIN-based authentication, and public awareness campaigns.

TOP STORIES

Pharma Growth in India Hits 10%

What Happened

India’s pharmaceutical sector is on a roll, posting a 10% year-on-year (YoY) growth in Q2 FY25, thanks to a robust performance in both North America and the domestic market. According to Axis Securities, the Indian Pharmaceutical Market (IPM) grew by 8%, with chronic therapies like diabetes treatments showing a 9% increase. 

North America led the charge with a 10.8% YoY increase, while the Indian market wasn’t far behind with a 9.8% YoY growth.

Why It Matters

The pharmaceutical sector’s future looks bright with a strong pipeline of new treatments. Key areas to watch include biosimilars, GLP-1 drugs, and peptides—particularly for diabetes care and other chronic conditions. 

The healthcare sector is also riding high, with revenue jumping 17.6% YoY and 10.4% quarter-on-quarter (QoQ), boosted by improved hospital occupancy rates. In fact, hospital occupancy rose by 340 basis points (bps) YoY and 470 bps QoQ, a sign that more people are accessing care, possibly fueled by growing health insurance awareness. 

Conclusion

Insurance payers now contribute 33% to total hospital revenues, reflecting impressive growth of 23% YoY and 12% QoQ. Despite the relatively low penetration of health insurance in India, this trend presents a big opportunity for expansion.

As the country’s purchasing power continues to rise, the potential for wider insurance coverage and increased hospital revenue becomes even more promising. This untapped market could fuel further growth in the healthcare sector!

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