Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian Stock Market opened on Saturday, breaking the regular trading schedule. This extra effort was put to test whether markets can function properly from a disaster recovery site in case the primary site is down with a glitch. The day saw two trading sessions, where there was not much movement in the benchmark indices.

BUSINESS

Google Restores Indian Apps After Minister's Warning

What happened

Google has agreed to reinstate several Indian applications on its Play Store after a direct meeting with Union IT Minister Ashwini Vaishnaw. The tech giant had earlier delisted 10 prominent Indian apps, including Naukri and Bharatmatrimony, citing non-compliance with billing policies.

The decision to restore the apps follows a stern warning from Minister Vaishnaw, who emphasized India's clear policy on protecting its startups. The move also comes amidst condemnation from Indian corporate leaders, who urged the Competition Commission of India (CCI) to intervene against what they termed as "anti-competitive" behaviour by Google.

Why it matters

The core of the issue lies in Google's billing policy, where the company imposes a fee ranging from 11% to 26% on in-app payments. Corporate leaders in India have raised objections to these charges, leading to complaints filed with the CCI. Google contends that its fees are the lowest among major global markets and apply only to the sale of digital goods, affecting less than 3% of developers in India.

The controversy prompted Indian startup leaders to denounce Google's actions as another instance of unfair practices by the US tech giant. The discussions have even sparked talks about establishing India's independent mobile application store.

As of now, Google India has reinstated Info Edge applications like Naukri and 99acres on the Play Store where users can currently only access them as 'consumption applications,' with in-app billing temporarily disabled.

Zoom out

Google's actions and subsequent restoration spark discussions on fair payment practices and global tech giants' influence on Indian app developers. As per the US giant’s claim, the mentioned well-established companies evaded fees despite benefiting from the platform.

As discussions continue, the episode underscores the ongoing challenges in the global tech landscape, with Indian leaders advocating for fair practices and autonomy in the digital realm.

Also, check out what Shaadi.com owner, Anupam tweeted on this matter!

BIG MONEY MOVES

JSW Steel to invest ₹1,282 crore to revitalize Italian steel mills

JSW Steel, led by Sajjan Jindal, is injecting €143 million (₹1,282 crore) into its Italian steel mill in Piombino. The subsidiary, JSW Steel Italy SRL, signed an MoU with Italian authorities to double the rail mill capacity, from 300,000 to 600,000 tonnes annually.

This investment aims to establish Piombino as a cutting-edge rail mill, reduce steel imports in Italy, and drive economic development in the region. The move follows JSW's 2018 acquisition of Piombino's steel facilities for €55 million.

Boeing's $51 million settlement addresses US export violations

Boeing has agreed to a $51 million settlement with the U.S. State Department for multiple export violations, including Chinese employees in China illicitly downloading documents related to U.S. Defense Department programs. From 2013 to 2017, three Chinese employees downloaded technical data on various programs.

Additional unauthorized downloads occurred in 18 countries, covering programs like the F-18, F-15, and F-22 fighter jets. The settlement addresses 199 violations of the Arms Export Control Act and International Traffic in Arms Regulations.

BUSINESS

IG Drones Soars into Defence Manufacturing with a 1,000-Drone Ambition

What happened

IG Drones, the drone technology whiz, is gearing up for an airborne revolution! The company, founded in 2018, is spreading its wings into the defence sector with an ambitious plan to establish a massive drone manufacturing facility in Vadodara, Gujarat. CEO Bodhisattwa Sanghapriya shared a sneak peek, announcing the facility's June launch at 30% capacity, with ambitions to reach an impressive annual production of 1,000 drones within the first year.

Currently, IG Drones can churn out a modest 100 drones a year. But with the upcoming Vadodara facility, the company aims to make a whopping 90% of these drones for the defence sector and allocate the remaining 10% for civilian applications.

Why it matters

In the ever-evolving drone landscape, IG Drones is positioning itself strategically. With a surge in demand propelled by liberalized regulatory frameworks like Drone Rules 2021 in India and government incentives such as the Production Linked Incentive (PLI) scheme, the company sees an opportunity to propel itself on the global stage. 

Anticipating the geopolitical buzz around drones, IG Drones plans to allocate 50% of its defence drone capacity for exports. With the drone industry gaining prominence in the defence sector, the company is aligning itself with the rising demand, not just domestically but also from Middle East countries.

Zoom out

As IG Drones gears up for tech stardom, the cash story unfolds. Having raised $1.7 million and being a profit-after-tax company, IG Drones is now eyeing an additional $5 million to fuel its technological pursuits. The company's focus on staying ahead in drone tech is evident, with developments like 5G-enabled drones already in play, and whispers of 6G drones on the horizon.

In a world where data takes the spotlight, IG Drones is not just about manufacturing flying machines; it's about harnessing the power of information. The company's plans for a drone-dominated future, both in terms of production and technology, make it a key player to watch in the skies of the drone industry.

BIG PICTURE

🤝 Qualcomm and C-DOT forge alliance to boost innovation in Indian tech

Qualcomm has teamed up with C-DOT to empower India's developers and startups. This partnership, announced at the Mobile World Congress 2024, aims to accelerate the development of indigenous telecom products. The collaboration will provide access to cutting-edge chip technologies, expert guidance, and essential resources, fostering innovation among Indian tech entities.

This strategic alliance follows the Union Cabinet's recent approval of ₹1.26 trillion proposals for semiconductor units, marking a pivotal moment for India's tech landscape.

🪙Flipkart introduces its own innovative UPI facility in Axis Bank partnership

Flipkart has just rolled out its UPI services, Flipkart UPI, in collaboration with Axis Bank. Initially available for Android users, it offers convenient UPI payments without switching applications. The move follows Flipkart's demerger with PhonePe in late 2022.

The service will integrate loyalty features like Supercoins and cashback, aiming to democratize seamless payment options. Flipkart UPI seeks to enhance customer experience with safe, efficient, and cost-effective transactions, aligning with the growing popularity of UPI as a preferred payment method.

BUSINESS

Vedanta Unveils A $3 Billion Debt Drop and a Demerger Spectacle 

What happened

Vedanta Resources, the powerhouse behind Mumbai-based mining giant Vedanta Limited, just announced plans to take its debts on a $3 billion rollercoaster ride – but fear not, it's a downward plunge over the next three years. In a recent analyst meeting, Navin Agarwal, Vice Chairman of Vedanta Ltd, split the beans, making it clear that the company has no intention of extending the loan rollover tradition.

The financial strategy seems solid, with Vedanta Ltd's anticipated cash flow pre-growth capex hitting a comfortable $3.5-4 billion for the 2025 fiscal year. This hefty sum is expected to cover secured debt maturities of $1.5 billion, ensuring a smoother ride through the financial terrain.

Why it matters

Emphasizing Vedanta's dynamic approach to its capital structure, Agarwal mentioned that the recent share dilution was part of a broader strategy for optimal capital allocation. He expressed confidence that upcoming growth projects would enhance earnings potential, leading to a natural reduction in the cost of capital.

• The company plans to manage the maturities of $1,100 million in the financial year 2025, along with nearly $750 million in interest servicing. This will be achieved through various means, including brand fees, dividends from operating companies, asset monetization, and other strategic initiatives.

But that's not all; market watchers are excited after Vedanta's recent divestment spectacle. Vedanta recently divested a significant portion of its shares through its promoter entity, Finsider International, selling 1.76% of its shares at an average price of ₹265 per share. This move raised a substantial sum of ₹1,737 crore, resulting in a reduction of the promoter group's ownership stake to 61.95%.

Zoom out

As the financial curtain rises, Vedanta's forthcoming demerger is poised to steal the show. With strategic divestments, a clear focus on debt reduction, and a simplified corporate structure in the offing, Vedanta seems set to embrace the future with a robust plan.

MIRCH MASALA

🖼️ Take a look at Bill Gates’s Instagram post from the Statue of Unity visit
😥 Virat Kohli fans express disappointment as star cricketer skips Ambani pre-wedding bash
💃 Viral video shows Dhoni and Bravo playing Dandiya at the Ambani’s function
😂 Boat-boss Aman Gupta dances to SRK’s famous song, mentions Rihanna
🎂 Sidharth Malhotra wishes Shraddha on her birthday in ‘Ek Villain’ style