Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian stock market dipped in red, with all major indices loosing more than 1% on Wednesday. On the Sensex, only HUL, Infosys, and TCS finished the day with gains, while Power Grid Corp., IndusInd Bank, Maruti Suzuki India, Wipro, and Tata Steel faced the most significant losses.

BUSINESS

Apple Puts the Brakes on Electric Car Dream

What happened

In a shocking twist, Apple Inc. has pulled the plug on its electric car project , ending a decade-long quest to challenge Tesla's dominance. The decision to abandon Project Titan was revealed internally by COO Jeff Williams and VP Kevin Lynch on February 27, leaving around 2,000 project employees in disbelief.

Why it matters

Initiated in 2014, Project Titan aimed to create a fully autonomous electric vehicle (EV). However, the venture faced leadership and strategic hurdles from the outset, with Lynch and Williams taking the reins after Doug Field's departure a few years ago.

This surprising move coincides with the broader challenges in the EV market . Sales growth has slowed due to high prices and inadequate charging infrastructure, affecting major automakers like General Motors and Ford. Even Tesla, a key player in the EV revolution, is anticipating a significant drop in expansion rates this year.

Anyway, Apple's strategic shift towards artificial intelligence (AI) is gaining attention. Many Special Projects Group (SPG) employees will pivot to the AI division, focusing on generative AI projects. This strategic shift by Apple reflects a commitment to prioritize the potentially more stable and lucrative landscape of artificial intelligence for long-term profitability, steering away from the uncertainties inherent in the electric vehicle market.

Zoom out

While the demise of Project Titan is undoubtedly a significant moment in Apple's history, the company remains resilient. The tech giant continues to pump significant resources into research and development, recently unveiling the Vision Pro headset, marking its entry into a new product category after nearly a decade. 

Also, take a look at  Elon Musk’s celebratory post following Apple’s exit.

BIG MONEY MOVES

  Shadowfax secures $100 million in Series E funding led by TPG NewQuest

Shadowfax, the Mumbai-based logistics provider, announced a significant milestone with a $100 million Series E funding round led by TPG NewQuest. The deal, valuing the company between $500-550 million, includes primary capital, venture debt, and secondary investments.

With a profitable track record and an annualized revenue run rate of ₹2,400 crore for FY24, Shadowfax eyes inorganic growth opportunities and aims to debut on Indian bourses within the next 24 months.

The company plans to leverage the funds to expand its middle-mile network and extend last-mile delivery services across all 20,000 Indian pin codes over the next 18 months.

ELGi Equipments unveils ₹500 crore expansion plan

ELGi Equipments Ltd, a prominent air compressor manufacturer, is embarking on a ₹500 crore expansion for heightened manufacturing efficiency. The strategic move involves relocating from Coimbatore to a spacious 120-acre campus , overcoming space constraints.

ELGi's past decade groundwork sets the stage, doubling the global air compressor market growth rate, and securing the sixth position globally. With a 6% CAGR, operating revenue surged from $209 million to $371 million, targeting $450 million by FY26.

BUSINESS

Kedaara Nears Record-Breaking $1.7 Billion Raise for India's Largest PE Fund

What happened

Kedaara Capital is on the verge of securing an impressive $1.7 billion for what is poised to be the country's largest-ever private equity fund. This revelation highlights the burgeoning interest in India's flourishing economy, especially as global investors seek alternatives to China amid shifting economic dynamics.

This impending fund will mark Kedaara's fourth, dwarfing its 2021 fund by a whopping 54%. The fund's timing aligns with India's stock markets hitting unprecedented highs, reflecting optimism about the nation's economic prospects. 

Why it matters

Against the backdrop of India's stock market rally , Kedaara's move signifies a growing trend of expanding private equity funds tailored to the Indian market. With sectors such as banking, healthcare, consumer, and software in their crosshairs, the fund plans to engage in both minority stakes and strategic buyout deals. 

Approximately 80% of the fund is expected to originate from backers of Kedaara's previous funds, with the remaining 20% sourced from new contributors, including notable names like the U.S.-based Cleveland Clinic and the University of Minnesota. 

India's attractiveness as an investment destination is further underscored by Western firms diversifying away from China. In 2023, India's share of Asia-Pacific private equity deals surged to 23%, while China saw its lowest figure in nine years, dropping to 31%.

Zoom out

As Kedaara finishes up paperwork with investors, the upcoming fund announcement is a crucial moment in India's private equity scene.

With a proven track record, Kedaara's three previous funds, totalling $2.4 billion , have fueled investments in 27 Indian companies, including notable names like Lenskart and Mahindra Logistics.

BIG PICTURE

  ✈️  AirAsia Expands Wings, Targets Tier-2 and Tier-3 Cities in India

AirAsia, headquartered in Malaysia, is set to enhance its India route map by adding Jaipur, Vishakhapatnam, and Ahmedabad. With India contributing 18% of its total revenue, the airline aims to extend beyond metro cities, eyeing connections for smaller cities as well. Currently, AirAsia boasts a 51% market share between India and Malaysia.

The airline, optimistic about the growth, plans to leverage visa-free entry to Malaysia until December 2024, expecting a surge in Indian visitors to touch around 7,00,000.

🚗  Volvo anticipates one-third of car sales in India to be EVs this year

Volvo anticipates a swift rise in Electric Vehicle (EV) adoption within India's luxury car segment , expecting EVs to constitute one-third of its total car sales in the country this year. The automobile king is planning to introduce two fully electric cars, the EX30 and EX90, in the domestic market by next year, aiming to become a globally all-electric vehicle company by 2030.

In 2023, the company experienced a 31% growth in overall volume and saw significant EV adoption, with 30-35% of new customers opting for electric cars.

BUSINESS

Reliance and Disney India Join Forces in ₹70,352 Crore Media Powerhouse Merger

What happened

Reliance Industries Limited (RIL) and global media giant Walt Disney have inked a deal to merge their media operations in India, forming a colossal ₹70,352 crore media behemoth . The merger will see the integration of Viacom18's media undertaking into Star India, facilitated by a court-approved scheme of arrangement.

Nita Ambani, the force behind Reliance, takes the reins as the chairperson of the joint venture, while former Disney executive Uday Shankar steps in as the vice-chairperson, providing strategic guidance to the collaboration. The shareholding structure reveals that Reliance and its affiliates will dominate with a 63.16% stake, leaving Disney with the remaining 36.84%.

Why it matters

This strategic alliance not only cements Reliance's position in the Indian media sector but also positions it as a formidable player in the global entertainment landscape. The deal includes Reliance investing ₹11,500 crore at closing into the joint venture to boost its over-the-top (OTT) business, particularly Jio Cinema. The infusion of funds aims to leverage Disney-Star India's extensive content library and sports broadcasting expertise.

Upon completion, this merger will birth the largest entity in the Indian media, entertainment, and sports sectors. With over 100 channels in multiple languages, two leading OTT platforms, and a colossal viewer base of 750 million, the joint venture is set to reshape the entertainment landscape. Exclusive rights to distribute Disney films in India and access to a treasure trove of over 30,000 Disney content assets will provide an unparalleled entertainment experience for Indian consumers.

Zoom out

Mukesh Ambani hails this collaboration as a 'landmark agreement that heralds a new era in the Indian entertainment industry .' 

As the deal awaits regulatory approvals, it is slated for completion in the last quarter of 2024 or the first quarter of 2025, marking a significant chapter in India's media and entertainment landscape.

MIRCH MASALA

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