6 Feb 2024

Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Sensex dropped 354 points, influenced by the selling in major indices like Reliance Industries, Bharti Airtel, and Maruti, following weak trends in Asian and European markets. Nifty faced ongoing selling pressure around the 22,000 mark, while the Bank Nifty is likely to consolidate between 45,000 and 47,000 until a clear market direction emerges.

BUSINESS

Adani Group's Copper Plant Set to Supercharge Metal Industry

What happened

In a move set to reshape India's copper landscape, Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is gearing up to kickstart operations at the world's largest single-location copper manufacturing plant in Mundra, Gujarat. This behemoth $1.2 billion costing facility is poised to reshape the nation's metal industry, signalling Adani's ambitious foray into the metals and mining sector.

Why it matters

The sheer magnitude of the $1.2 billion investment by the Adani Group is sending shockwaves through the industry. This move not only positions Adani as a major player in the metals arena but also addresses the growing demand for copper in India's industrial landscape. 

• With India's per capita copper consumption languishing at 0.6 kg, far below the global average of 3.2 kg, the significance of Kutch Copper's entry into the scene cannot be overstated. 

• India's relentless copper imports, hitting a record 1,81,000 tonnes in FY23, coupled with a meagre 30,000 tonnes in exports, highlight the pressing need for domestic production.

The plant's strategic location and massive scale are set to boost the country's metal production capabilities significantly. With copper being a vital component in various sectors, including infrastructure and electronics, this investment aligns perfectly with India's developmental needs. Moreover, it adds a shiny nugget to Adani's diversified portfolio, showcasing its prowess in expanding across key sectors.

Zoom out

In the grand theatre of economic growth, Adani's $1.2 billion investment in a state-of-the-art copper plant emerges as a star performer. As the global demand for copper continues to rise, Adani's strategic move not only meets current needs but also positions India favourably in the international metals market.

BIG MONEY MOVES

Hyundai prepares for the largest IPO in Dalal Street history

South Korea's Hyundai Motor Co is considering a blockbuster move, planning to list its Indian unit, Hyundai Motor India (HMIL), in what could be India's largest IPO. The IPO will approximately fetch $3 billion, valuing the company at $25-30 billion. If successful, this IPO could surpass LIC of India's ₹21,000 crore record in 2022. Global banks including Goldman Sachs, Citi, and JP Morgan are vying for the IPO deal. 

Finance Ministry injects ₹66,745 crore for capital investments

The Ministry of Finance has disbursed Rs 66,745 crore in loans to 28 states under the 'Special Assistance to States for Capital Investment' scheme. The initiative, aimed at boosting capital expenditure, provides a 50-year interest-free loan of up to Rs 1.3 lakh crore in the fiscal year 2023-24. Between April 2023 and February 2024, Rs 66,745.21 crore has been released, with diverse projects approved in sectors like health, education, infrastructure, and more.

BUSINESS

Wabag wins $33.5 Million Order for Industrial Wastewater Treatment

What happened

VA TECH WABAG (WABAG), the Indian water technology giant, has clinched a lucrative $33.5 million order from SEPCO III Electric Power Construction Corporation. The deal revolves around the Engineering and Procurement of a 20 MLD (Million Liters per Day) Industrial Wastewater Treatment Plant (IWWTP) at the Ras Tanura Refinery Complex in Saudi Arabia. This ambitious project is part of a collaboration between SEPCO III and Miahona, a  developer and operator of water projects, with Saudi Aramco as the off-taker.

Why it matters

WABAG's role in this aquatic endeavour is that of the Process and Technology Contractor. The project involves a comprehensive scope of work, encompassing design, engineering, procurement, supply, and supervision of installation and commissioning. The IWWTP is not your run-of-the-mill operation; it's set to tackle a challenging mix of effluents from the Desalter Effluent, Tank Farms, and other oily wastewater sumps in the refinery. 

• The timeline for this watery feat spans 20 months, employing a sophisticated treatment scheme. 

• Biological treatment, coupled with Filtration and Reverse Osmosis technologies, will be the show's stars, gearing towards reusing treated effluent within the refinery premises. 

• Adding a twist to the plot, Wet Air Oxidation will step in for the treatment of Spent Caustic Effluent, making this project a true water treatment blockbuster.

Zoom out

This substantial order not only reinforces WABAG's technological leadership but also establishes a firmer foothold in the Middle East Region. As they dive into this water-centric project, it's clear that WABAG is making waves in global water solutions. 

On a side note, in January, WABAG inked an MoU with Peak Sustainability Ventures for a greener initiative – the establishment of 100 Bio-CNG plants across various locations, showcasing their commitment to sustainable water and energy solutions.

BIG PICTURE

👋 Snap initiates workforce reduction, set to restructure the team

Snap, the parent company of Snapchat, is ready to trim its workforce by 10%. This move is expected to incur pre-tax charges between $55 million and $75 million, with $45 million to $55 million in future cash outlays. The restructuring aims to position the business for growth, aligning with Snap's priorities. In the tech industry trend, this announcement follows a broader wave of job cuts, with 24,000 tech professionals losing jobs in January alone. 

🤖 Birlasoft explores AI frontiers with generative AI launch

Birlasoft Ltd, part of the CK Birla Group, has unveiled its new Generative AI platform, Cogito, aiming to revolutionize business with innovation and automation. The platform, with a market cap of ₹23,058 crore, focuses on enhancing decision-making, automating processes, and improving overall business performance. Previously, Birlasoft also joined hands with Microsoft Azure OpenAI Service aiming to expedite value creation and foster innovation in the widespread adoption of Generative AI.

BUSINESS

Pristyn Care's BeatXP Aims for $75 Million 

What happened

BeatXP, the fitness-focused tech brand under Pristyn Care's umbrella, is gearing up for a financial workout. The company is preparing to raise a whopping $50-75 million, which would pump up its valuation to a solid $400 million. This move comes as BeatXP, known for its array of fitness tech products like wearable watches, massagers, and earphones, aims to capitalize on the booming wearable and fitness-tech industry.

Why it matters

BeatXP's plan to pump up its finances aligns perfectly with the surging demand in the wearable and fitness-tech sector, which has witnessed robust growth in the last 24-36 months. The subsidiary's impressive performance has been a silver lining for Pristyn Care, especially amid sluggish growth in its core business. With a reported revenue exceeding ₹200 crore and a valuation of $400 million, BeatXP is setting itself up as an attractive investment destination.

Despite the overall success, Pristyn has been exploring avenues to fortify its financial health. BeatXP's move to raise capital comes as part of this strategy, with the company eyeing entry into new categories. The company's shareholders have been informed of the fundraising plans, setting the stage for a deal expected in the next four to five months.

Zoom out

In the dynamic world of fitness technology, BeatXP's quest for a $75 million cash infusion marks a significant stride. As part of the Pristyn Care family, BeatXP aims not only to capitalize on the thriving wearable market but also to diversify its product offerings. The fitness tech landscape is evolving, and BeatXP is gearing up to be at the forefront, proving that in the world of finance, it's not just about counting steps but counting dollars too.

MIRCH MASALA

⚽️ Boos and refund demands erupt as Lionel Messi misses Inter Miami match

🏆️ Shankar Mahadevan and Zakir Hussain's win fetches India the Grammy’s glory

🗺️ Read: How Google Maps helped Tamil Nadu man catch thief who stole his father’s phone

🎂 Couple celebrates their wedding anniversary in a drain as a protest

😴 Watch: Blind guy reveals what blind people see in their dreams