Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: On May 29, Indian benchmark indices fell for the fourth consecutive session, with the Sensex dropping 667 points to 74,502 and the Nifty declining 183 points to 22,704. Among the top losers were HDFC Life, SBI Life Insurance, ICICI Bank while Hindalco, Power Grid Corp, Nestle, and Sun Pharma were the leading gainers.

BUSINESS

Reliance Retail's Quick Commerce Comeback

What happened

Reliance Retail is making a splashy return to the quick commerce market with a novel twist—a 30-minute delivery promise. Diverging from the under-ten-minute model adopted by competitors like Blinkit and Zepto, Reliance plans to utilise its extensive network of stores and Kirana partners, interconnected through the JioMart Partner program, for sourcing products.

Unlike rivals, they won't establish dark stores for lightning-fast deliveries but will rely on tech platforms like FYND and Locus to optimise delivery routes.

Why it matters

The venture will kick off with groceries but quickly expand to include apparel and electronics, leveraging its vast store network of over 19,000 locations.

Despite initial challenges, the quick commerce sector has seen remarkable growth, constituting up to 30% of overall e-commerce revenue for fast-moving consumer goods companies in the past year. This shift underscores changing consumer preferences for fast and convenient deliveries, prompting Reliance to revisit and revamp its quick commerce strategy.

Zoom out

This comeback follows their shelving of a similar pilot project in Navi Mumbai last year, also named 'JioMart Express,' due to profitability concerns stemming from higher delivery costs and lower purchase ticket sizes compared to traditional e-commerce. By integrating this service into its existing app and leveraging its extensive network, Reliance aims to tap into the growing demand for swift deliveries while addressing past profitability concerns. 

BIG MONEY MOVES

Power Mech Projects secures ₹563 crore nuclear power plant order

Power Mech Projects Ltd (PMPL) has won a significant ₹ 563 crore contract from BHEL to construct a nuclear power plant at the Kaiga Atomic Power Project in Karnataka. This marks PMPL's entry into the critical nuclear power sector. The contract duration is 32 months, with an additional 12-month guarantee period.

PMPL Chairman Sajja Kishore Babu highlighted the project's contribution to India's goal of tripling nuclear power capacity to 22,480 MW by 2031.

Man Industries Secures Orders Worth ₹ 490 Crore

Steel pipes maker Man Industries has announced securing new orders valued at ₹ 490 crore, both domestically and internationally. These orders boost the company's order book to approximately ₹2,600 crore. The new contracts, set for delivery within six months, involve multiple grades of steel pipes for oil, gas, and water transport projects.

BUSINESS

FAME 3 to Boost India's Electric Vehicle Sector with ₹ 10,000 Crore Outlay

What happened

The Modi government is set to launch the third edition of its FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, worth ₹10,000 crore. Expected to roll out within the first 100 days of the new government taking charge next month, FAME 3 will focus on providing financial incentives for electric two-wheelers, three-wheelers, and government-owned buses.

However, the inclusion of electric cars for institutional buyers like taxi aggregators is still undecided. The new scheme will replace FAME 2, which lapsed in March 2024 and will initially be valid for two years.

Why it matters

This substantial investment aims to propel the adoption of electric vehicles (EVs) in India, a crucial step towards reducing pollution and dependency on fossil fuels. FAME 3's emphasis on two and three-wheelers aligns with the prevalent mode of transportation for many Indians, potentially accelerating EV market penetration. 

The scheme mirrors its predecessor which offered a 15% subsidy but introduces a streamlined approach with updated guidelines, requiring fresh certification for companies seeking incentives. By excluding subsidies for electric cars, the government signals a focus on mass-market EVs rather than higher-end models, likely enhancing the scheme's overall impact.

Zoom out

As India aims to triple its nuclear power capacity and increase its share of electric vehicles, FAME 3 is poised to play a pivotal role in the nation’s green energy goals. With the new government set to approve the scheme soon, India’s electric vehicle landscape is on the cusp of a transformative era.

BIG PICTURE

Global debt hits $315 trillion after pandemic impact

The world’s debt has skyrocketed to $315 trillion, as per the latest report from the Institute of International Finance (IIF). This surge, the largest since World War II, aligns with the economic fallout from the Covid-19 pandemic.

Emerging markets have played a significant role in this increase, with their debt reaching over $105 trillion, marking a $55 trillion rise over the past decade. This escalation has driven the global debt-to-GDP ratio to new heights, with mature economies like Japan and the U.S. also contributing substantially.

BYD unveils super fuel-efficient hybrid tech

China's BYD has introduced a groundbreaking plug-in hybrid technology with a record-low fuel consumption of 2.9 litres per 100 km. Unveiled by Chairman Wang Chuanfu in Xian, the technology promises over 2,000 km of driving on a fully charged battery and a full tank.

This advancement follows BYD's successful hybrid models like the Qin Plus DM-i sedan, which have driven rapid growth since 2021. Priced from 79,800 yuan ($11,011), these hybrids have dominated BYD's sales, with 3.6 million units sold over three years.

BUSINESS

Fortis Healthcare Unveils ₹ 1,300 Crore Expansion Plan

What happened

Fortis Healthcare, a prominent healthcare provider, is embarking on an expansion plan with a capital expenditure (capex) of around ₹1,300 crore. This investment is aimed at enhancing the capacity of existing hospitals over the next few years. As part of this initiative, Fortis plans to add approximately 2,200 beds across its facilities.

Why it matters

This expansion strategy is crucial for Fortis Healthcare as it pictures the company's commitment to meeting the growing demand for quality healthcare services. By adding more beds and enhancing infrastructure, Fortis aims to improve patient access, offer a wider range of medical services, and strengthen its position in the healthcare sector.

The planned expansions at existing facilities such as Faridabad, Anandpur Sahib, and Shalimar Bagh, along with the upcoming Manesar facility and the Bengaluru project, signify Fortis' strategic approach to geographical coverage and service diversification. These developments are expected to boost operational capabilities and contribute to revenue growth.

Zoom out

The planned additions of beds and infrastructure upgrades align with Fortis' long-term vision of being a leading healthcare provider in India. Fortis Healthcare anticipates receiving the occupancy certificate for its Bengaluru facility on BG Road by the end of this fiscal's second quarter. Presently, the company operates more than 4,500 beds across 28 hospitals nationwide.

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