Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Indian stock market closed at a record high for the second consecutive day on July 4, showing resilience and investor confidence. There was notable buying in the IT and banking sectors, signalling optimism ahead of the earnings season.

BUSINESS

Raymond Shifts Gears with Real Estate Demerger

What happened

Raymond Ltd., known for textiles and real estate, has announced a major move to spin off its real estate arm, Raymond Realty Limited. The demerger, approved by the board, aims to boost the business's value and attract new investors. Shareholders will receive one Raymond Realty share for every Raymond share they hold. The newly formed entity will be listed on both the NSE and BSE. This strategic shift comes as Raymond Realty reported impressive figures: ₹1,593 crore in revenue and ₹370 crore in EBITDA for FY24.

Why it matters

With Raymond Realty holding 100 acres in Thane, including 11.4 million sq ft of RERA-approved area, the potential revenue exceeds ₹25,000 crore.

•  Additionally, ongoing projects in Thane are valued at ₹9,000 crore and new JDAs in Mumbai regions like Bandra and Mahim could generate over ₹7,000 crore. 
  
  

• This brings the total potential revenue from these developments to a whopping ₹32,000 crore. 
  

For shareholders, this move signifies a clear path to tapping into these lucrative real estate opportunities.

Zoom out

Raymond’s strategic demerger is a win-win for the company and its shareholders. By focusing on distinct business verticals—Lifestyle, Real Estate and Engineering—Raymond aims to optimise capital allocation and balance sheet management.

Meanwhile, Raymond’s stock remains a solid performer, closing at ₹2,935.45 on BSE, reflecting a 68.87% surge year-to-date.

BIG MONEY MOVES

AstraZeneca pumps ₹250 crore into Chennai hub for big bang growth

AstraZeneca India Private Limited (AZIPL) is going big with a ₹250 crore ($30 million) expansion of its Global Innovation and Technology Centre (GITC) in Chennai. This grand plan includes adding 180,000 square feet to its current 334,000 square feet set up at Ramanujan IT City, making it AstraZeneca's largest global capability centre.

Whiteland Corp makes grand Gurugram plan with Marriott

Whiteland Corporation is going all-in with a ₹5,600 crore bet on Gurugram's real estate, teaming up with Marriott International. This 20-acre project will feature 1,600-1,800 branded homes starting at ₹5 crore each, aimed at elite buyers.

With 60 lakh square feet planned across two phases, the investment primarily comes from internal funds. As Marriott waves its magic hospitality wand, Gurugram's skyline gets a swanky upgrade, leaving potential buyers dreaming of 'Westin' dreams and penthouse parties.

BUSINESS

India at the Heart of Siemens' Digital Future

What happened

Siemens AG is upgrading its tech game, aiming to double its software and digital services sales to 20%, with India playing a starring role. CEO Roland Busch confirmed this in an interview, showing that Siemens, known for its industrial prowess, is shifting gears to focus on software. They’ve invested a cool €12-13 billion in their software portfolio over the past decade, and they’re just getting warmed up.

They’re also teaming up with Microsoft on AI projects, including a version of Copilot that uses spoken English to program robots. Siemens' India operations are set to expand, with plans to add 3,000 specialists to its already formidable 34,000-strong team. 

Why it matters

Siemens’ focus on India is a big deal for several reasons. First, it highlights India's growing importance as a hub for deep tech and digital innovation. With a robust pool of electrical and mechanical engineers, India is perfectly positioned to support Siemens’ ambitious goals. The company’s investment in AI and digital services means more high-tech jobs and opportunities for local talent. 

Additionally, Siemens envisions India not just as a manufacturing hub but as a global export powerhouse. This transformation will boost production capabilities and open new business avenues for Indian suppliers. 

Zoom out

Siemens’ strategy to leverage India’s tech talent and manufacturing capabilities could be a game-changer for both the company and the country. By investing heavily in software and AI, Siemens is not only future-proofing its business but also contributing to India's growth as a deep tech powerhouse. 

Also, the company plans to invest ₹1,000 crore in various projects, like expanding the power transformer factory in Maharashtra and setting up a vacuum interrupter factory in Goa.

BIG PICTURE

Dior and Armani’s handbag horror: labour exploitation exposed

Luxury giants Dior and Armani are under fire for labour exploitation in Italy. Investigators found that Dior’s suppliers get €53 per handbag, which then hits stores at €2,600 and Armani’s bags bought for €93, sell for €1,800. The investigation revealed abysmal working conditions: workers toiled long hours for as little as €2-3 per hour, often without proper safety measures or documentation.

Tesla's India plans hit the brakes

Elon Musk's much-anticipated visit to India, including a meeting with Prime Minister Narendra Modi, got scrapped, with Musk citing urgent company matters. Since then, Tesla's team hasn't followed up with Indian officials, signalling cooling interest in new investments. Sources reveal Tesla's financial challenges and a focus elsewhere dim prospects for immediate Indian ventures. 

Meanwhile, India is eyeing local heroes like Tata Motors and Mahindra & Mahindra to lead the electric car race. If Musk decides to parachute back in, India's still ready to roll out the welcome mat—maybe even with a chai and a smile.

BUSINESS

Ixigo Reports Stellar Performance in FY24

What happened

Ixigo, the travel technology platform, has unveiled impressive financial results for the fourth quarter and full fiscal year 2024. The company, which recently debuted on the stock exchanges, has more than doubled its profits.

• In FY24, Ixigo's profit surged to ₹73 crore, marking a significant jump from ₹23 crore in the previous fiscal year. 
  
  

• This growth was supported by a robust increase in total income, which rose by 28.6% to reach ₹665 crore, compared to ₹517 crore in the preceding year.
  
  

Why it matters

The Gross Transaction Value (GTV) for FY24 hit a sky-high ₹10,000 crore, soaring 38% year-on-year. Flights were the MVP, with GTV up 75% for the year and 63.6% in Q4 FY24, though they did admit Q4 was more of a single-digit crawl due to pricey airfares and supply snags.

Ixigo's exceptional financial performance amidst challenging market conditions shows its strategic market positioning. The company's ability to grow its profitability and GTV highlights its strong operational efficiency and customer traction. Despite industry-wide challenges, Ixigo managed to outpace market growth in key verticals such as flights and trains, while also expanding its presence in the bus segment.

Zoom out

As CEO Aloke Bajpai points out, India's travel and tourism sector is poised to become a juggernaut, contributing ₹36.8 lakh crore to the GDP by 2033 and employing over 58.2 million people nationwide.

With such promising prospects ahead, Ixigo's journey continues to inspire confidence and excitement in the travel sector, promising new adventures and opportunities on the horizon.

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