Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Nifty50 experienced limited movement and ended the day almost flat, leading to a quiet trading session. Sector performance was mixed: FMCG and energy sectors saw gains, while metal, realty and pharma sectors declined. The broader market indices also displayed a lacklustre trend, finishing slightly lower.

BUSINESS

India's Growing Taste for Premium Beer

What happened

In FY24, India’s beer market experienced a refreshing twist as premium brews surged ahead with an impressive 25-30% volume boost, leaving the overall beer market's 8-10% growth in the foamy dust. Companies like Bira91 are leading this charge, particularly with their flavoured premium beers, which have found unexpected success in regions like Ludhiana, challenging traditional perceptions about beer preferences in Punjab. 

Why it matters

Looking ahead, the Indian beer market is projected to hit Rs 62,240 crore by 2028, growing at a compound annual growth rate (CAGR) of 8.1%. This growth is fueled by premiumization and evolving consumer choices. 

• Research highlights the industry's potential, driven by a legal drinking-age population of about 300 million and increasing demand among younger consumers.
  
  

Besides market expansion, the alcohol sector anticipates revenue growth of 8-10% for domestic alcohol companies in FY2025, with beer companies expected to see a 4-6% volume expansion. This optimism is bolstered by favourable weather conditions anticipated in FY25, likely to boost seasonal beer consumption.

Zoom out

The evolving preferences towards premium beers not only reflect changing consumer demographics but also signal opportunities for innovation and market diversification. As breweries adapt to these trends, the future of India's beer industry promises a blend of tradition and innovation, catering to a discerning and expanding consumer base.

BIG MONEY MOVES

Godrej Industries stake sold in family drama

RKN Enterprises has offloaded a hefty 12.65% stake in Godrej Industries Ltd for a cool ₹3,803 crore. This strategic move, part of a family settlement saga, saw promoters Nadir, Pirojsha, Nisaba and Tanya upping their ante in the family empire. The deal was struck at ₹ 893.05 per share and made waves on the BSE, where Godrej Industries' stock edged up 0.82% to ₹899.90 a piece.

As the Godrej family splits its vast holdings, shareholders are left wondering: will this drama unfold into a blockbuster success or a sequel with unexpected twists?

Diamond Power wins ₹409 crore cable deal

Diamond Power Infrastructure just snagged a glittering ₹409 crore order from Adani Green Energy for LV/MV cables. This hefty order, inclusive of GST, is expected to be wrapped up by December 2024. In a BSE filing, Diamond Power made it clear that no promoters or related groups have any stakes in this deal, ensuring it's not a related party transaction.

BUSINESS

Xiaomi Plans to Ship 700 Million Devices

What Happened

Xiaomi, the second-largest smartphone seller in India, has set an ambitious target to ship 700 million devices over the next 10 years. This is a significant leap from the 250 million devices it shipped in its first decade in the Indian market.

The company plans to expand its manufacturing partnerships to boost local value addition and aims to locally source 55% of the non-semiconductor bill of materials (BOM) for smartphones within two years, up from the current 35%.

Why it matters

The company is focusing on four growth pillars: cutting-edge yet affordable products, engaging marketing across social media, an omnichannel distribution strategy and top-notch customer support. These pillars have helped Xiaomi navigate the competitive market, especially as the average selling price of smartphones in India skyrocketed from ₹8,800 in 2014 to ₹20,800 in 2024.

Who knew phones could inflate faster than your balloon at a birthday party? Despite this, the mid-range segment, priced between ₹10,000 to ₹15,000, remains the hot favourite.

Zoom out

Founded in 2014, Xiaomi, along with sister brands Vivo, Oppo and Realme, has played a pivotal role in making smartphones affordable in India, contributing to a massive installed base of 650 million smartphones. 

• As of March 2024, Samsung leads the market with a 19% share, shipping 6.7 million units, followed closely by Xiaomi and Vivo at 18% each. 
  
  

• Reflecting on the past, Xioami chief Muralikrishnan noted that in 2014, only 28% of phone sales in India were smartphones. Fast forward to today, that number has skyrocketed to 72%.

BIG PICTURE

Mercedes-Benz commits $500 million to Indian EV expansion

Mercedes-Benz is revving up its engines for a $500 million investment in India's electric vehicle sector, but with a quirky condition attached— they insist on a steady 5% GST on EVs for the next decade. 

Santosh Iyer, MD & CEO of Mercedes-Benz India, highlighted the necessity of stable tax policies for such long-term investments. With plans to roll out six electric models, including an electric G-Class SUV, Mercedes-Benz aims to lead the charge towards a greener future, while hoping India's charging infrastructure evolves faster.

India powers up with Russia's uranium deal

During his visit to Russia, Prime Minister Narendra Modi is set to charge up India's nuclear energy with a long-term uranium supply deal for Tamil Nadu's new power plant. Officials confirmed that the pact would brighten India's nuclear future.

India's uranium mines in Jharkhand are running low, making this Russian connection vital. With uranium prices tripling since 2020, the timing couldn't be better.

BUSINESS

JSW Steel Pledges $1 Billion to Go Green

What happened

JSW Steel, India’s steel giant, is set to invest $1 billion to slash carbon emissions, aiming for net neutrality by 2050. Currently puffing out 2.36 tonnes of CO2 for every tonne of steel, JSW plans to trim this to 1.95 tonnes by 2030. Their secret weapons? Green hydrogen and carbon capture.

Why it matters

The steel industry is a significant carbon emitter, responsible for nearly 20% of industrial energy use in India. With the nation aiming for net-zero emissions by 2070, JSW Steel’s efforts are a big step toward this goal. 

• Besides, JSW plans to expand its production capacity to 51.5 million tonnes by 2030-31. 
  
  

• By September 2027, the capacity will exceed 43 million tonnes, supported by a ₹64,434 crore capital expenditure over the next three years.

Impressively, the expansion cost of less than $500 per tonne is well below the global benchmark of $1,000 per tonne for blast furnace-based capacities.

Zoom out

JSW Steel is leading the charge towards environmental sustainability in the steel industry. As the company progresses towards its ambitious targets, it sets a precedent for global steel manufacturers to adopt cleaner production practices. 

MIRCH MASALA

🤑 Teen in New York earns cash rating Instagram profiles—here’s how
🥴 What on earth was Justin Bieber wearing at Anant Ambani's Sangeet?
🌃 Turkish night sky alight with glittering fireball meteor captured in stunning video
😢 No tears challenge: Homeless man sacrifices meal to feed stray dogs
🚘️ Indian mother shows desi swag driving Tesla Cybertruck in viral video