Newswala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Indian benchmark indices closed flat in a highly volatile session as investors awaited the RBI policy outcome. The Bank Nifty index is currently in a tense struggle between bulls and bears, with an expected decisive move in the near future.

BUSINESS

Essar's Ambitious Green Blueprint Unveiled at India Energy Week

What happened

Essar Group has revealed an ambitious plan at India Energy Week. Essar is putting the 'heavy' in long haul heavy trucks with an ambitious plan to decarbonize, proving that in the world of conglomerates, being environmentally savvy is the new heavyweight champion. Following a substantial ₹1,40,000 crore loan repayment over the last four years, Essar Group boasts a robust revenue stream exceeding ₹1 lakh crore from its existing operations.

Essar aims to invest $3.6 billion in constructing one of the world's largest low-carbon (blue hydrogen) plants and the first green refinery. The company is also eyeing a significant 1 gigawatt green hydrogen project in Gujarat. Furthermore, Essar is taking strides in green mobility, with plans to develop an LNG and electric ecosystem for cleaner long-haul transportation.

Why it matters

Essar's move is not just about growth; it's a strategic alignment with three core themes: decarbonization, decentralization, and digitalization. As India propels towards becoming the world's third-largest and fastest-growing economy, Essar is keen on fulfilling climate commitments and contributing to green growth. The investment in green hydrogen and the LNG-electric ecosystem reflects Essar's commitment to cleaner energy solutions and a sustainable future.

• The group's arm, Essar Oil and Gas Exploration and Production Limited is a key player in the coal bed methane industry, contributing nearly 65% to India's total coal bed methane production.

• Over time, Essar has poured nearly ₹2 lakh crores into diverse sectors, including ports, steel plants, oil refining, fuel retailing, power generation, mining, shipping, and telecom.

• The company made a significant move by selling its Vadinar oil refinery and fuel retailing network to Russia’s Rosneft-led consortium in a massive deal worth over ₹86,000 crore.

Their goal is to increase this contribution to 5% of India's total gas production within the next five years. Essar's initiatives in green mobility and hydrogen plants align with the nation's vision for energy transition and sustainable growth.

Zoom out

Essar's strategic blueprint not only showcases its commitment to sustainability but also positions the conglomerate at the forefront of India's energy transition. The massive investments in green projects, and Essar's track record across diverse sectors, mark a significant shift towards a greener, more sustainable future.

BIG MONEY MOVES

Jindal Power makes $1.69 billion bid for troubled coal plant

Jindal Power, a unit of Jindal Steel & Power Ltd, has thrown a $1.69 billion bid into the ring for the troubled KSK Mahanadi coal-based power plant in eastern India. The 1,800-megawatt plant, entangled in insolvency proceedings since October 2019, attracted interest from heavyweights like Adani Power and Vedanta Ltd. With cash reserves of $1.45 billion and total debt claims of $3.85 billion, the power plant holds a pivotal position in India's rekindled enthusiasm for coal-based power amid a surge in energy demand.

Alibaba boosts confidence with $25 billion share buyback 

Alibaba announced its share buyback program by $25 billion following lower-than-expected quarterly results. The company's net profit for October to December plummeted by 77% year-on-year to 14.4 billion yuan. The buyback program, running until March 2027, reflects Alibaba's confidence in its business outlook amidst fierce competition.

The unexpected announcement briefly lifted Alibaba's US-listed shares, showcasing the market's response to the e-commerce giant's strategic decision.

BUSINESS

NPCI Unveils 'Digital Payments Score' to Redefine Credit Access

What happened

The National Payments Corporation of India (NPCI) is set to launch a groundbreaking initiative called the 'Digital Payments Score' to enhance the credit identity of individuals. In collaboration with select lenders, NPCI will conduct a pilot program to facilitate retail credit access for users.

India's retail credit market is still under-penetrated, despite substantial growth in loan disbursals by domestic fintech companies. In the first quarter of this fiscal year, fintech firms disbursed an impressive 22.2 million loans , marking a robust 30.6% increase from the previous year's figures.

Why it matters

With a significant portion of the Indian population being underserved or unserved in terms of credit, NPCI's 'Digital Payments Score' aims to address this gap. The Chief Operating Officer of NPCI highlighted that even compared to emerging markets like Colombia and South Africa, the number of people with a credit score in India is limited.

Fintech companies are expected to play a pivotal role in driving the 'Digital Payments Score' initiative in the coming years. Striking a balance between utilization risk and credit risk while minimizing friction in the process will be crucial. 

Building a credit identity and creating awareness about credit scores are essential components of this initiative. The body emphasized the need to establish credit identity, drawing a parallel with the United States, where even students start using credit cards to build a mature credit score for future financial endeavours.

Zoom out

NPCI's innovative 'Digital Payments Score' emerges as a promising catalyst, poised to reshape India's credit landscape. As users actively engage with this novel scoring system, it will not only enhance their financial standing but also contribute to the broader goal of creating a robust credit culture in the country. The future holds exciting prospects as NPCI steers India toward a more inclusive and dynamic era of digital finance.

BIG PICTURE

💊  Mankind Pharma promoters divest stake to comply with SEBI's norms

Mankind Pharma's promoters are selling a combined 1.62% stake, valued at approximately ₹1,330 crores , to meet SEBI's 25% minimum public shareholding requirement – talk about a prescription for a new portfolio! The block deal is set at a floor price of ₹2,050 per share, with Kotak Mahindra Capital and IIFL Capital serving as advisors. The company's stock has seen a 20% rise in the last six months, while the aggregate promoter and promoter group shareholding currently stands at 76.5%.

🧬  Dhanuka Agritech explores a joint venture with Spain's Kimitec

Dhanuka Agritech is exploring a joint venture with Spain's Kimitec for the development of sustainable biological products enhancing crop health. The Gurugram-based firm signed a 'Letter of Intent' to explore business opportunities, including setting up an R&D facility in India.

The CEO of Kimitec sees Dhanuka Agritech as an ideal partner to introduce their natural solutions to Indian farmers. The demand for such products is rising globally, and Dhanuka Agritech aims to meet this demand in India through innovation and precision farming.

BUSINESS

Viacom18's Grand Entrance into Live Experiences

What happened

Viacom18 Media Pvt Ltd is making waves in the live events arena, steering beyond its broadcasting and digital content forte. The media giant is amplifying its focus on live events, with a major highlight being the upcoming Vh1 Supersonic festival in Pune. The company has strategically organized precursor events like Supersonic Club Nights and the Supersonic Arcade, building anticipation for the main festival.

Why it matters

The live events sector, initially severely impacted by the pandemic, is experiencing a remarkable resurgence.

• The industry, estimated at ₹10,000 crore for organized events and activations, is witnessing sustained footfall, with smaller cities emerging as significant contributors to the live events landscape. 

•  Viacom18 is capitalizing on this trend, recognizing a growing consumer interest in outdoor experiences post-COVID. 

The business head of Viacom18 Live, highlights the sustained enthusiasm for live events, suggesting a notable shift in consumer spending patterns towards quality experiences. While Viacom18 faces challenges typical of the live events domain, including venue constraints and robust competition, the company's diversification into live events aligns with its broader strategy to enrich its entertainment portfolio beyond television and OTT.

Zoom out

Viacom18's foray into live events comes amidst broader industry dynamics, where revenge consumption initially fueled the surge in outdoor experiences. Viacom18's strategic move aligns with its efforts to enhance its entertainment offerings. As the live events sector undergoes transformation, Viacom18's Vh1 Supersonic festival, featuring a diverse lineup and key sponsors, marks a bold step into an evolving landscape.

MIRCH MASALA

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