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Market News Top 10 News

Atul Auto Forays Into EV Market – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Atul Auto launches two electric three-wheelers

Three-wheeler maker Atul Auto has entered the electric vehicle (EV) space by launching two models at the Auto Expo 2023. Atul Greentech Pvt. Ltd (AGPL), a subsidiary of Atul Auto, launched Mobili (a passenger vehicle) and cargo variant Energie. Both Mobili and Energie are built with industry-leading technology, telematics, and Battery Management Systems (BMS).

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Dr. Reddy’s Labs partners with Theranica for marketing wearable Nerivio in India

Israeli digital therapeutics company Theranica has announced a strategic license and supply agreement with Dr. Reddy’s Laboratories Ltd., for the exclusive marketing and distribution of its FDA-approved Nerivio in India. Nerivio is a wearable migraine treatment that stimulates the body’s pain receptors to relieve acute and chronic migraine pain. The agreement includes licensing fees for exclusive rights to market Nerivio in India.

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Govt to invite bids for Concor privatisation this month

The government will invite Expressions of Interest (EoIs) or preliminary bids for privatising Container Corporation of India (Concor) in January. In Nov 2019, the Union Cabinet approved the strategic sale of a 30.8% stake (along with management control) in Concor. The government will retain a 24% stake post-sell-off but without any veto powers.

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Reliance Jio launches 5G in Uttarakhand

Reliance Jio has launched its True 5G services in Uttarakhand. Jio consumers in Dehradun can avail of the Jio Welcome Offer, which includes unlimited data at up to 1 Gbps+ speed at no extra cost. Apart from the existing investment of Rs 4,950 crore, Jio will additionally invest over ₹650 crore in the deployment of a standalone 5G network in the state.

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IEX’s ₹98 crore share buyback opens today

Indian Energy Exchange’s (IEX) share buyback program worth ₹98 crore opened on Wednesday. The company will buyback 49 lakh equity shares (of a face value of ₹1 each) at a maximum price of ₹200 per share. The share buyback will close on July 10. IEX is India’s first power exchange that provides an automated trading platform for electricity and renewable energy certificates.

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USFDA issues warning letter to Sun Pharma’s Halol unit

The US Food & Drug Administration (USFDA) has issued a warning letter to Sun Pharmaceuticals, specifying violations of norms in its manufacturing facility at Halol, Gujarat. The drug regulator noted that Sun Pharma failed to establish and follow appropriate written procedures. The procedures have been designed to prevent microbiological contamination of drug products. The Halol unit was placed under import alert on Dec 7, 2022.

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Oil refiners hope for ₹50,000 crore cash compensation from govt on fuel price freeze: Report

According to a CNBC-TV18 report, state-run oil marketing companies (OMCs) like HPCL, BPCL, and Indian Oil Corporation are seeking compensation of up to ₹50,000 crore to cover up for the losses they have incurred due to the freeze in fuel prices. The OMCs are demanding this compensation to make up for the losses incurred in the first half of the current financial year (H1 FY23). 

As an immediate measure, companies are of the view that diesel prices can be hiked by ₹2-3 per litre.

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Commercial loan origination volumes decline 4.3% in FY22: Report

According to a report from Crif High Mark (a credit information company), commercial lending origination volumes declined by 4.3% YoY to 22.2 lakh loans in the COVID-affected FY22. Loan originations in terms of value jumped 73% to ₹66.49 lakh crore. The average ticket sizes for commercial loans across lenders witnessed a huge spike during the year, with state-owned lenders reporting the number at ₹3.34 crore in FY22.

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Reliance Communications’ committee of creditors to meet on Thursday

The Committee of Creditors (CoC) of bankrupt Reliance Communications will meet on Thursday as part of a long-standing insolvency process. RCom, which housed Anil Ambani’s telecom business, has been undergoing corporate insolvency resolution for over four and a half years. The company was sent to the bankruptcy courts in May 2018 and started the insolvency process under the Insolvency & Bankruptcy Code (IBC) in 2019.

Indian banks, vendors, and creditors have claimed ₹86,000 crore in dues from RCom.

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Editorial

The National Logistics Policy 2022: Explained

As we know, a well-functioning logistics sector forms the backbone of domestic and international trade in any country. It connects all vital industries and ensures a smooth supply chain of goods and services. A logistics sector requires efficient transportation systems, inventory management (warehousing), quick & easy flow of data, and reliable customer service.

During strict lockdowns amidst the Covid-19 pandemic, our logistics sector rose to the occasion and delivered essential goods and services with limited resources. Now, the Indian government has introduced an important policy that aims to bring much-needed changes to the logistics sector.

On September 17, Prime Minister Narendra Modi announced the National Logistics Policy (NLP) 2022. It aims to ease the movement of goods and boost the trade sector in our economy. In this article, we dive into the challenges faced by the Indian logistics sector and how this new policy plans to address them.

Key Challenges Faced by the Logistics Sector

  • The Indian logistics market is worth over $200 billion as per government estimates. However, the sector is extremely complicated and inefficient. There are 20 government agencies, 40 government partner agencies, 36 logistics services, 129 inland container depots, 168 container freight stations, and many other intermediaries in between. So it takes a lot of time and money to clear all paperwork in order to transport goods!
  • Currently, if the logistical cost of moving a product from one location to another is $100, customs, paperwork, insurance, and administration costs account for nearly $12. The logistical cost in India is about 13% of our gross domestic product (GDP). This figure is higher than that of the US, Europe, and China. 
(Source: Statista)
  • Due to high logistical costs, the competitiveness of India’s exports has fallen. Poor infrastructure across our country, increasing fuel costs, and legal complications continue to severely affect the transportation of goods. There are constant delays, and some of our existing networks are under-utilised.

What is the National Logistics Policy?

For nearly three years, the Indian govt has been working on a policy to address the primary concerns of institutions and stakeholders in the logistics sector. Here are the main features of the National Logistics Policy 2022:

  • The policy aims to bring down the logistics cost from 13-14% of the GDP to around 8% of GDP in the next five years.
  • The Indian government will create a roadmap to reduce the country’s dependence on road transport for cargo movement. It will explore more options like railways, shipping, and air transport. The govt also plans to establish logistics parks/hubs strategically across the country.
  • The govt will focus on digital transformation in the logistics sector and bring it in line with global standards. The new policy has four features: Integration of Digital System (IDS), Unified Logistics Interface Platform (ULIP), Ease of Logistics (ELOG), and System Improvement Group (SIG).
  1. Under the IDS, data from the road transport, railways, customs, aviation, and commerce departments will be integrated into a single platform.
  2. A ULIP will bring all the digital services related to the transportation sector into a single portal. 
  3. Industry associations can use ELOGs to reach out to the government and resolve issues.

Thus, all key entities involved in the Indian logistics sector can track real-time movements, access documents digitally, reduce costs, and save valuable time.

The Way Ahead

NLP aims to remove all obstacles and inconsistencies in the logistics sector by re-engineering current processes. The government’s vision is to develop a technologically enabled, cost-efficient, sustainable, and trusted logistics ecosystem for accelerated growth. The fall in logistics costs would improve the competitiveness of Indian goods in domestic and export markets.

However, there’s a long way to go. Our logistics sector is heavily dependent on roadways. The ambitious Bharatmala Project was launched in 2015 to develop a massive highway network across our country by FY22. Sadly, the project is now facing a six-year delay, and the costs of raw materials are surging. Connectivity between roads and ports is another critical issue. We don’t have a dedicated rail corridor for freight transport yet even though it’s the cheapest mode to transport goods.

We can see that logistics companies are now̧ trying to expand their current networks and increase their capacities. The most prominent listed firms in the Indian logistics industry include Blue Dart, Delhivery, Container Corporation of India, VRL Logistics, Allcargo Logistics, Navkar Corp, Aegis Logistics, Mahindra Logistics, and TCI Express. Do keep a close watch on all these companies and further developments in the National Logistics Policy in the near future!

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Market News Top 10 News

IMF Retains India’s Growth Forecast for 2021 at 9.5% – Top Indian Market News

IMF retains India’s growth forecast for 2021 at 9.5%

The International Monetary Fund (IMF) has retained India’s gross domestic product (GDP) growth forecasts at 9.5% in 2021 and 8.5% for 2022. However, IMF has lowered its projection for global growth this year as supply disruptions impacted growth outlook for advanced economies, and pandemic dynamics have worsened in low-income economies. It projects world economic growth at 5.9% for 2021. 

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Tata Power Solar secures orders worth Rs 538 crore from EESL

Tata Power Solar has received a Letter of Award (LoA) from state-run Energy Efficiency Services Ltd (EESL) to build 100 megawatt (MW) distributed ground-mounted solar projects in Maharashtra. The total order value of the projects is Rs 538 crore. The commissioning date of the solar projects is set for 12 months. The utility-scale order book of Tata Power Solar now stands at nearly 4 gigawatt capacity with a value of Rs 9,264 crore.

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PSP Projects declared lowest bidder for housing project in Uttar Pradesh

PSP Projects Ltd has emerged as the lowest (L-1) bidder for a government residential project in Uttar Pradesh. The bid value of the project is Rs 238.7 crore. PSP Projects is a multidisciplinary construction company that offers a diversified range of construction and allied services across industrial, institutional, and residential projects in India. To learn more about the company, click here.

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L&T Construction secures significant orders for various businesses

Larsen & Toubro’s (L&T) construction arm has secured significant orders (in the range of Rs 1,000-2,500 crore) for its various businesses. In the metallurgical and material handling (MMH) business, the company has secured an order to set up a coke oven, by-product, and coke dry quenching plants. The buildings and factories business has won an order from a ‘prestigious client’ for the construction of office space at Hyderabad with an approximate built-up area of 20 lakh sq. ft.

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CONCOR’s physical volumes handled rises 11% YoY in Q2

Container Corporation of India’s (CONCOR) total physical volumes handled increased by 10.74% YoY to 9,80,757 twenty-foot equivalent units (TEUs) in Q2 FY22. However, physical volumes have declined by 1.11% compared to the previous quarter. Domestic physical volumes rose 33.68% YoY to 1,88,332 TEUs. Meanwhile, export-import (EXIM) physical volumes improved by 6.4% YoY to 7,92,425 TEUs during the same period.

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BLS International to process Brazilian visas in India

The Embassy of Brazil in India has authorised BLS International Services Ltd to process visa applications. The company will accept visa applications from centres in Delhi and Mumbai. BLS will initiate Brazil visa processing, along with several convenience services such as photocopy, courier, and form filling. BLS International Services is a global services partner for governments and citizens in the domain of visa, passport, consular, and e-governance services.

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Govt grants “Maharatna” status to Power Finance Corporation

The government has granted the ”Maharatna” status to state-owned Power Finance Corporation (PFC). This move will give the company greater operational and financial autonomy. The board of a Maharatna enterprise can make equity investments to undertake financial joint ventures and subsidiaries, undertake mergers and acquisitions in India and abroad. PFC is the largest infrastructure finance company dedicated to the power sector under the administrative control of the Ministry of Power.

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Bhansali Engineering Q2 Results: Net profit jumps 248% YoY to Rs 123.66 crore

Bhansali Engineering Polymers reported a 248.3% YoY jump in consolidated net profit to Rs 123.66 crore for the quarter ended Sept (Q2 FY22). Net profit increased by 59.8% when compared to the previous quarter. Its total income rose by 22.21% YoY (or 59.76% QoQ) to Rs 378.30 crore during the same period. The company’s board has declared an interim dividend of Rs 1 per share.

TPG Rise Climate, ADQ to invest $1 billion in Tata Motors’ new EV unit

Tata Motors said it will be creating a new electric vehicles (EV) subsidiary that will require over Rs 16,000 crore of investment over the next five years. TPG Rise Climate and Abu Dhabi’s ADQ will be investing $1 billion (~Rs 7,500 crore) for an 11-15% stake in this subsidiary. The investment will value the subsidiary (TML EVCo) at ~$9.1 billion. The company will be asset-light, and all the investment will be going towards creating intellectual property such as new vehicle designs and EV platforms.

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Ujjivan SFB’s total deposits grow 31% YoY to Rs 14,090 crore in Q2

Ujjivan Small Finance Bank reported a 31% YoY growth in total deposits to Rs 14,090 crore in Q2 FY22. The bank’s disbursements jumped 114% YoY (or 138% QoQ) to Rs 3,122 crore during the same period. The gross loan book stood at Rs 14,508 crore at the end of the July-Sept quarter, up 4% YoY and 3% quarter-on-quarter (QoQ). Retail deposits saw a 38% YoY and 12% QoQ growth to Rs 7,270 crore in Q2 FY22.

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Factory output surges 11.9% in August

India’s Index of Industrial Production (IIP) grew by 11.9% in August 2021. This is an increase of 0.4% from July. IIP grew on the back of a low base last year when factory output was -7.6% in August 2020. The manufacturing sector, which constitutes 77.63% of the IIP, grew 9.7% in August. The mining sector output rose 23.6% in August, while power generation increased 16%.

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