Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets were closed on account of Maharashtra Day.

BUSINESS

Ola Electric's Market Share Surpasses 50% Amidst EV Sales Dip

What happened

In April, Ola Electric achieved a remarkable milestone as its market share surged past 50%, selling 33,934 electric two-wheelers despite an overall decline in EV two-wheeler sales by 52%. The dip in sales is attributed to the usual slow sales period in April post-festive season and a broader seasonal slowdown in demand. India's record-high electric two-wheeler sales in March, crossing 136,000 units, contrasted with April's subdued figures, marking a 1% YoY growth due to year-end discounts.

Why it matters

The Ministry received complaints about two Original Equipment Manufacturers (OEMs) violating Phased Manufacturing Programme (PMP) guidelines under the FAME India Scheme Phase-II. In response, the Central government reduced the budgetary allocation for the FAME scheme by nearly 44% to ₹2,671 crore for FY25. Industry players predict this budget cut could lead to a slowdown in the adoption of Electric Vehicles (EVs). 

The FAME India Scheme, an integral part of the National Electric Mobility Mission Plan (NEMMP), aims for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles to promote sustainable mobility in India.

The decrease in subsidies led to higher EV prices, except for those like Ola, which heavily discounted their products. This situation has resulted in the electric two-wheeler market experiencing negligible growth.

Zoom out

The EV market, particularly in the two-wheeler segment, faces complexities with subsidy issues and reduced budgetary support. Ola Electric's market dominance emphasises its robust cost structures and vertically integrated manufacturing capabilities. Despite a slowdown, key players like Bajaj witnessed an 84% YoY uptick in sales, indicating market resilience amidst challenges. 

BIG MONEY MOVES

Pharmeasy raises $216 million at 90% lower valuation

Online pharmacy retailer PharmEasy recently secured ₹1,804 crore ($216 million) in funding, led by Ranjan Pai’s Manipal Education and Medical Group and existing investors. The company issued 186.4 million convertible preference shares at ₹96.8 each, according to RoC filings. However, this funding round caused a 90% drop in its valuation, now standing at $710 million from its previous peak of $5.6 billion in 2021 .

The investment aims to address financial obligations, including payments to lenders like Goldman Sachs. PharmEasy's revenue for FY23 increased to ₹6,644 crore, with reduced losses compared to the previous fiscal year.

Royal India Corporation invests ₹450 crore in Kalyan Marina residential project

Royal India Corporation Limited (RICL) announced a significant investment of ₹450 crore in their upcoming residential project, Kalyan Marina. Spanning a 2.2-acre plot, this project aims to generate revenues of ₹175 crore, as stated by the company.

Scheduled to kick off in May 2024, the Kalyan Marina project promises spacious living areas with top-notch amenities and integrated commercial spaces for easy access to essential services. Its strategic location, just a 2-minute walk from Kalyan Station, complements the expected ₹900 crore upgrade of the station.

BUSINESS

India's GST Revenue Hits Historic ₹ 2.10 Lakh Crore

What happened

The Goods & Services Tax (GST) collections have reached a historic milestone, surpassing the ₹2 lakh crore mark . In April, the gross GST collection soared to ₹ 2.10 lakh crore, marking a notable 12.4% year-on-year increase. This impressive growth is attributed to a robust uptick in domestic transactions, which surged by 13.4%, and a noteworthy 8.3% rise in imports, as per the Finance Ministry's statement.

Why it matters

The significance of this milestone lies in its reflection of the strengthening economic activity in the country. The surge in GST collections is indicative of increased consumer spending, business transactions, and a buoyant import-export scenario. Notably, Mizoram led the pack with a staggering 52% growth, showcasing regional economic vibrancy.

Moreover, the net GST revenue for April 2024 stood at ₹1.92 lakh crore, demonstrating a substantial 17.1% growth compared to the same period last year. This surge in revenue underscores the resilience of India's tax system and its ability to adapt to evolving economic landscapes.

Zoom out

This milestone includes a significant cess collection of ₹13,260 crore, with ₹1,008 crore coming from imported goods. The strong growth in domestic transactions, coupled with a notable increase in imports, paints a picture of robust economic activity. This achievement not only bolsters the country's fiscal position but also reflects the concerted efforts of GST officials in combating non-compliance, and fake invoicing, and enhancing tax administration . 

BIG PICTURE

⚖️  Johnson & Johnson proposes $11 billion settlement for cancer cases

In a bid to resolve lawsuits over its baby powder causing cancer, Johnson & Johnson (J&J) is offering an $11 billion settlement . This amount is $2.1 billion more than their previous offer. The proposed settlement involves a structured payment of $6.48 billion spread over 25 years for talc cancer lawsuits. J&J maintains the safety of its products but faces ongoing legal challenges with over 60,000 talc-related cancer claims.

Despite a recent stock decline of nearly 12%, J&J saw a 3.2% rise in premarket trading on Wednesday.

🏅  Tata adds discovery+: becomes the largest OTT aggregator

Tata Play Binge, an OTT aggregation service, has expanded its platform by integrating Discovery+. This move solidifies its position as the largest aggregator of OTT apps , now offering over 30 local and global apps. Discovery+ brings a vast library of content spanning 40 genres, including popular titles like 90 Day Fiance and Man vs. Wild.

Discovery+ will join renowned OTT platforms on Tata Play Binge such as Apple TV+, Disney+ Hotstar, ZEE5, Lionsgate Play, and more.

BUSINESS

Jindal Stainless's ₹ 5,400 Crore Expansion Drive

What happened

Jindal Stainless, a prominent player in stainless steel manufacturing, is making waves with its ambitious expansion strategy. The company recently announced plans for a massive investment of ₹5,400 crore to enhance its melting and downstream capacities.

A significant highlight of this strategy is a joint venture in Indonesia valued at over ₹700 crore with a Singapore entity. This venture aims to develop and operate a stainless steel melt shop with an impressive annual production capacity of 1.2 MTPA (Metric Tonnes Per Annum), boosting Jindal Stainless's melting capacity by 40%.

In addition to this venture, Jindal Stainless is focusing on expanding its operations in Odisha and has acquired a 54% equity stake in Chromeni Steels.

Why it matters

Jindal Stainless's expansion plans hold significant importance for multiple reasons. Firstly, the investment signifies their commitment to growth and innovation in the stainless steel sector, positioning them as a formidable player in the industry. The joint venture in Indonesia opens up new avenues for growth and market penetration in international markets .

Secondly, the acquisition of Chromeni Steels adds to Jindal Stainless's portfolio and capabilities, especially in the value-added segment. This move aligns with their long-term strategy of diversification and market expansion, ensuring a stronger foothold both domestically and globally.

Zoom out

JSL is also injecting ₹100 crores this year, to revamp the newly acquired Chromeni facility. Formerly owned by Tsingshan Industries, the facility had faced operational challenges leading to its closure. JSL aims to restore operations within six months, bolstering its facility portfolio and logistical efficiency.

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