Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The market experienced its largest weekly decline since June 2022, with the Nifty dropping nearly 5% and snapping a three-week gaining streak. BSE-listed companies lost nearly Rs 18 lakh crore in market capitalisation last week, as all sectoral indices, except Nifty Metal, ended lower, with Nifty Realty sliding 8%.

TOP STORIES

Carbonated Drinks Makers Push for a Sweet Tax Twist

What happened

Carbonated soft drinks in India are currently taxed at a hefty 40% (28% GST plus 12% cess), no matter how much sugar they contain. This high tax applies equally to drinks with no added sugar, as well as sugary soft drinks. Industry players, alongside policy advocates, are calling for a layered tax system, where drinks are taxed based on their sugar content. 

Globally, many countries, including the UK, have adopted this model to encourage companies to reduce sugar levels in their beverages. 

• India's carbonated beverage industry, which has invested over ₹50,000 crore so far, hopes this reform could unlock further investments.

Why it matters

The current high taxation on carbonated drinks is hurting growth and innovation in the industry. For example, soft drinks with little or no sugar are still taxed at the same rate as sugary drinks, discouraging companies from introducing healthier alternatives. 

A recent report by ICRIER (Indian Council for Research on International Economic Relations) suggests a layered system, with 12% GST on zero-sugar drinks, 18% on low-sugar options, and maintaining 28% on sugary drinks. The industry, if given a favourable tax regime, could attract ₹80,000 crore in investments over the next five years.

A big call

With a layered tax structure, India could shift from punishing all carbonated beverages to focusing on sugar content. This would not only encourage companies to produce healthier drinks but also make the tax system fairer and in line with global standards. The additional revenue could also support farmers, as more fruit-based beverages could be introduced, benefiting India’s huge fruit production sector. 

• Globally, over 120 countries have adopted such systems to promote healthier consumption.

PAISON KA KHEL

Reliance powers up with ₹17,600 crore for expansion

Anil Ambani's Reliance Group is all set for a massive ₹17,600 crore fundraising push. Reliance Infrastructure and Reliance Power plan to boost their net worth to ₹25,000 crore, setting the stage for big expansion moves.

The funds come from multiple sources: ₹4,500 crore through equity issues, ₹7,100 crore from Varde Partners via 10-year, low-interest FCCBs, and another ₹6,000 crore through qualified institutional placements (QIP). With zero debt and a ₹50,000 crore investment plan, the group’s financial engines are ready to roar. 

Swiggy rolls out XL EV fleet for festive feasts

Swiggy has launched its new XL EV fleet, just in time for the festive season. This electric vehicle service is designed to handle bulk food orders, ensuring parties and gatherings face no delays. With temperature-controlled compartments and eco-friendly rides, Swiggy aims to expand this service across more cities soon. 

While Swiggy preps for its IPO with a ₹3,750 crore equity sale, it seems they’re also making sure no one’s going hungry this festive season.

TOP STORIES

Adani Group in Talks to Acquire Heidelberg's Cement Unit

What happened?

The Adani Group has entered discussions to acquire the Indian operations of Germany’s Heidelberg Materials in a deal potentially valued at $1.2 billion (₹10,000 crore). Heidelberg’s presence in India is managed through its subsidiaries, HeidelbergCement India and Zuari Cement. This proposed buyout, led by Adani-owned Ambuja Cements, could mark another major move by Adani in India’s cement sector. 

Why it matters?

This acquisition is part of a consolidation wave sweeping the Indian cement industry. UltraTech Cement, India’s largest producer, has been aggressively buying out companies to maintain its leadership, making this deal even more critical for Adani to stay competitive.

After scooping up Holcim’s assets in 2022 and sealing a deal with Penna Cement for ₹10,422 crore earlier this year, this buyout would add another feather to Adani’s cap. If successful, this acquisition will help Adani move closer to its target of increasing cement capacity to 140 million tonnes by 2028, up from its current 88.9 million tonnes.  

Final words

Ambuja Cements is well-positioned for the acquisition with cash and cash equivalents of ₹18,299 crore as of June 30, 2024. However, they may back out if the sale turns into an open bidding process, inviting other potential buyers. 

With Adani planning a capex of ₹40,000 crore for cement capacity expansion and infrastructure development over the next few years, this acquisition could be a cornerstone in its growth story—or a bump in the road if complications arise.

GLOBAL NAZARA

L&T sets sights on NASA’s next space station

Larsen & Toubro (L&T), India’s engineering giant, is aiming for the stars—literally. After decades of powering ISRO’s space missions, including Chandrayaan and the Mars Orbiter, L&T is now eyeing a role in NASA’s next International Space Station. The company had earlier been in talks with Jeff Bezos' Blue Origin for orbital launch and space habitat solutions, though negotiations stalled.

With India’s space economy expected to grow fivefold to $44 billion by 2033, L&T is banking on this upward trajectory. Who knows? Soon, we might see a "Made in India" sticker on NASA's next big project!

Foxconn’s revenue hits new heights thanks to AI

Foxconn, the world's largest contract electronics manufacturer, celebrated a record third-quarter revenue of $57.3 billion, marking a 20.2% increase year-on-year! This growth is powered by skyrocketing demand for AI servers, with tech giants like Nvidia among its notable clients. 

• In September alone, Foxconn raked in $22 billion, a 10.9% increase and the second-highest ever for the month. 
  

While smartphone sales remain flat year-on-year, new product launches kept things buzzing and helped Foxconn shares to rise 86% this year.

TOP STORIES

A new era for nuclear energy in India with private partnerships

What Happened

In a groundbreaking initiative, the Nuclear Power Corporation of India (NPCIL) announced it will operate 220 MW small nuclear plants funded and constructed by private companies. These innovative Bharat Small Reactors will utilise India’s advanced Pressurised Heavy Water Reactor (PHWR) technology. 

This innovation allows for a dramatic reduction in exclusion zones—from a hefty 1-1.5 kilometres to a mere 500 meters—making these small wonders perfect for energy-hungry industries like steel.

Why it matters

Well, this initiative is a game-changer for India’s energy ambitions. By allowing private players to foot the bill while NPCIL handles operations, it opens the door for a whole new era in nuclear energy. 

•  Building these small modular reactors (SMRs) will run around ₹16 crore per MW, a steal compared to the ₹100 crore per MW estimated with foreign partners.

Currently, India’s nuclear power capacity stands at 7,480 MW, which is projected to soar to 22,480 MW by 2031. If things go as planned, it will propel India’s ambitious net-zero goals and enhance the role of nuclear energy as a clean alternative, crucial for combating climate change.

Final words

The Nuclear Power Corporation of India (NPCIL), which operates 24 nuclear power plants—including 18 Pressurised Heavy Water Reactors (PHWRs) with various capacities—stands to play a pivotal role in this transition. The introduction of factory-built Small Modular Reactors (SMRs) can enable the establishment of nuclear facilities in locations unsuitable for larger reactors, thereby increasing energy accessibility.

While there are over 80 SMR designs globally, only four are currently under advanced construction in countries like Argentina, China, and Russia, highlighting the novelty of this technology. 

MIRCH MASALA

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