Menu

Blog

Diamond Power Lands ₹175 Cr Conductor Deal Under ₹100
Equities, Markets - February 28, 2025

Crash of Wires and Cables stock due to announcement of UltraTech entry

Crash of Wires and Cables stock due to announcement of UltraTech entry

 

On 27th February, 2025, major cables and wires companies’ stocks recorded a crash close to 21 percent. The reason for this is the announcement of the entry of Ultratech in the cable and wire segment. It led to a massive sell-off in the cable and wire’s stock. 

 

The five major stocks facing loss from this huge sell-off were Havells India, Polycab India Ltd., RR Kabel Ltd., Finolex Cables Ltd., and KEI Industries Ltd. The stocks lost more than Rs. 33,000 crore of their market capitalisation. 

 

Entry of Ultratech in Cables and Wires (C&W) segment

UltraTech, a biggest cement manufacturer in India plans to inject around 200 million dollars to establish cables and wires manufacturing facility in the state of Gujarat. The company intends to expand its area of operations in the wires and cables segment in the upcoming two years. The manufacturing facility will start working by late 2026.

 

The announcement of the company adversely affected the stocks of wires and cables companies and shares of UltraTech as well.

 

Impact on shares of wires and cables companies

Shares of KEI industries recorded a contraction of 21 percent. While Finolex Cables face a decline of 6 percent. Both RR Kabel and Polycab recorded a decline of 19 percent each.

 

Polycab and KEI Industries recorded loss of market capitalisation of around Rs. 16,000 crore and Rs. 7,632 crore, respectively.

 

Apart from the wires and cables’ stocks, UltraTech shares also felt the contraction in the market. The company’s share fell by about 5 percent and recorded a market capitalisation loss of 2 billion dollars. 

 

Overall, the shares of wires and cables companies recorded a fall in the range of 30 percent to 50 percent from their respective high points. Despite this, several stocks in this segment are trading well higher than their five-year average price-to-earnings multiple. 

 

Impact on wires and cables companies

The wires and cables industry in India has multiple players with no players having more than 20 percent of share in wires or cables segments. There are close to 400 companies which are small to big firms involved in this segment. The revenue generation of these companies is around Rs. 50 crore and Rs. 400 crore. It is a great opportunity for a firm to enter in the market with significant financial resources. 

 

UltraTech has some competitive advantages in terms of procurement of raw materials and networks in the real estate sector. UltraTech can directly source its supply of raw materials like aluminium and copper from Birla Copper and Hindalco, which are also part of the Aditya Birla Group.

 

However, the impact of the business operations of UltraTech will not affect earnings of its competitors until the start of operation of the manufacturing facility.

 

The chairman and managing director of KEI Industries, Anil Gupta also stated that the cables and wires industry is quite big and will be able to take new players without affecting the margins or business operations of existing players. One of the reasons for this is there is still time for Ultratech to start its operations in the C&W segment and to create its market presence. 

 

 

                                             

The image added is for representation purposes only

India’s Apple suppliers now export electronic components to Vietnam and China 

 

 

 

 

, , 0 Comment
Read More
Apple’s India Move: iPhones Worth $6 Billion and Counting
Equities, Markets - February 28, 2025

India's Apple suppliers now export electronic components to Vietnam and China 

India’s Apple suppliers now export electronic components to Vietnam and China 

 

India’s electronics industry marks a turning point in its manufacturing capability and exporting product portfolio. The sector for the first time started exporting electronic parts required to manufacture Apple products like AirPods, MacBooks, iPhones, and Pencils to Vietnam and China. India used to import these electronic parts in the past but now it is exporting them. This success is not only the achievement of India’s electronics industry but also the successful efforts of the US in diversifying its supply chain. 

 

Expansion plan of Apple’s product portfolio

In recent times, Apple suppliers like Tata Electronics, Motherson Group, Aequs, and Jabil are manufacturing mechanical parts which consist of enclosures for all Apple products except iPads. These parts are shipped to the assembly locations in order to make final products. 

 

Apple plans to expand the value added in India and also wants to create a strong local manufacturing system. In order to achieve this, it is planning to expand their product portfolio beyond just iPhones and major electronic parts. It is one of the primary reasons for Apple manufacturing mechanical parts, especially enclosures for their final products in India.

 

Impact on India’s electronics industry

Plans of expansion of product portfolio and start of export of electronics components of Apple has marked a significant milestone in the development of the industry. In the last 20 years, India used to be a major importer of components and sub-assemblies from Vietnam and China. It is a major success for the electronics component ecosystem in the industry. 

 

The steps taken by Apple and its suppliers in India will aid in development of the electronics component segment in the country. It will lead India to achieve an important position in the global electronics industry. The country is anticipated to achieve the target of component exports of 35 to 40 billion dollars by the year 2030. 

 

To achieve this goal, the government of India is also planning to provide production-linked incentive of higher than 3 billion dollars for the component making in India. 

 

In present times, India is progressing as an alternative manufacturing hub for Apple. 

 

Apple’s efforts to expand its suppliers in India

Manufacturing mechanics components is a complex and high skill job as it requires advanced machines and complex engineering. To manufacture these components, Apple is onboarding top Indian manufacturing companies and also establishing its global suppliers’ facilities in India.

 

In the last few years, Apple brought its two global suppliers in India which includes Jabil and Aequs. Jabil’s manufacturing facility is located in Pune and it manufactures mechanics components for AirPods. Aequs is located in Karnataka and manufactures mechanics for MacBooks. Apart from this, Aequs and Jabil now build mechanics for Apple Watch and Apple Pencil, respectively, Additionally, Motherson Group also joined Apple’s supplier base. It manufactures enclosures for iPhones. 

 

Three years ago, Apple onboarded Tata Electronics as its first supplier in India. Back then, Tata Electronics used to make components for Indian manufacturing facilities building iPhones. Today, the company not only builds components to satisfy local demand but also successfully export to China. 

 

Some of the other suppliers of Apple in India are Salcomp who manufactures power packs, magnetics, and coils. There is also Foxlink and Sunwoda who make cables and battery packs, respectively, for Apple.

 

Outlook of electronics industry

Currently, Apple only builds iPhones in India. It is now planning to expand its product range of manufacturing to AirPods as well. 

 

It marks India’s progress in the electronics manufacturing ecosystem. Initiatives taken under ‘Make in India’ will further aid India in achieving a high-tech component manufacturing ecosystem in the country.  

 

Apple has successfully shipped iPhones worth higher than INR 1 lakh crore from India. Currently, Apple is in discussion with Bharat Forge to add it in its supply chain.

 

 

 

                                             

The image added is for representation purposes only

Bharat Global Ports Consortium to bolster India’s maritime stance

 

 

 

 

, , 0 Comment
Read More
Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact
Equities, Markets - February 28, 2025

Bharat Global Ports Consortium to bolster India’s maritime stance

Bharat Global Ports Consortium to bolster India’s maritime stance

 

Overview

To increase India’s marine presence, Union Minister Sarbananda Sonowal formed a consortium between India Ports Global, Sagar Mala Development Company, and India Port Rail and Ropeway Corporation. In order to standardize operations, improve efficiency, and support international trade, he also introduced programs including the MAITRI App, the Logistics Port Performance Index, and the One Nation-One Port Process.

 

Initiatives to bolster India’s maritime stance

In order to increase their maritime presence and fortify supply networks, among other things, Union Minister Sarbananda Sonowal has established a consortium that includes India Ports Global, Sagar Mala Development Company, and India Port Rail and Ropeway Corporation. At a post-Budget industry stakeholders meeting held, Sarbananda Sonowal, the Minister for Ports, Shipping, and Waterways, also unveiled a number of other initiatives, such as the Logistics Port Performance Index (LPPI) Sagar Ankalan for FY 2023-24, the One Nation-One Port Process (ONOP) to standardize and streamline operations across India’s major ports, and MAITRI (Master Application for International Trade and Regulatory Interface) App.

 

Additionally, the website for the National Centre of Excellence in Green Port and Shipping (NCoEGPS) was established by the Union Minister. The Minister underlined that India’s Blue Economy encompasses employment, trade, sustainability, and economic growth in addition to ships and ports. The government is dedicated to offering the proper regulations, funding, and setting for success because of its enormous potential. In addition to ranking among the top 10 shipbuilding nations by 2030, the objective is to establish an environment that is top-notch, effective, and prepared for the future.

 

Bharat Global Ports Consortium

The Bharat Global Ports Consortium program will improve supply chains, expedite logistics, and enhance exports in support of the ‘Make in India’ campaign by building strong port infrastructure. According to the Minister, the consortium will drive port expansion, operations, and financing to position India as a major player in international trade and logistics by bringing together the three distinct entities: IPGL, which is involved in port operations; SDCL, which is involved in finance; and IPRCL, which is involved in infrastructure development.

 

The consortium seeks to strengthen India’s economic footprint and increase trade connections by emphasizing efficiency, innovation, and international cooperation. The Ministry claims that this project demonstrates India’s dedication to both economic resilience and marine excellence on the international scene.

 

One Nation One Port Process and the MAITRI App

India is taking a significant step towards standardized, efficient, and globally competitive ports with the introduction of the ‘One Nation – One Port’ Process and Sagar Ankalan – LPPI Index, the Minister said, adding that his ministry’s most recent initiatives are in line with the vision of a Viksit Bharat, promoting self-reliance, sustainability, and economic growth.

 

The Ministry thrives for decreasing inefficiencies, lowering carbon footprints, and fortifying India’s place in international trade by improving port performance and optimizing logistics.  Furthermore, the Ministry’s dedication to smart, green, and modern port infrastructure will guarantee a sustainable marine future for future generations while also bolstering economic resiliency.

 

The ministry stated that it has standardized documentation with immigration, the port health organization, and port authorities as a first stage in the ONOP process. This has reduced bulk cargo documents by 29% (from 150 to 106) and container operation documents by 33% (from 143 to 96). Transparency, uniformity, and improved port administration are ensured by these measures, which represent a major step towards Maritime Amrit Kaal Vision 2047.

 

Strengthening India’s Global Trade Position through Port Efficiency and Digital Innovation

India’s position as a major player in international logistics will be strengthened by these initiatives, which will continue the efforts made since 2014 to improve efficiency, streamline trade processes, and support global supply chains. This aligns with the goal of building a smooth, effective, and future-ready commerce network by utilizing digital innovation and international collaborations, which will hasten India’s transition into a major economic force in the world.

 

According to the government, this program intends to harmonize port operations in order to improve efficiency, lower costs, and increase India’s position in international trade, as ports are vital entry points for both internal and international trade.

 

Conclusion

In order to improve India’s standing in international trade, the Bharat Global Ports Consortium was established. The partnership, which consists of India Ports Global, Sagar Mala Development Company, and India Port Rail and Ropeway Corporation, intends to strengthen supply chains, increase exports, and improve port operations. By supporting the ‘Make in India’ initiative, advancing port growth, and enhancing infrastructure, this partnership will establish India as a significant force in global trade and logistics.

 

 

                                               

 

 

The image added is for representation purposes only

Private 5G network in India struggles to find demand: COAI

 

 

 

 

, , 0 Comment
Read More
Private 5G network in India struggles to find demand: COAI
Equities, Markets - February 28, 2025

Private 5G network in India struggles to find demand: COAI

Private 5G network in India struggles to find demand: COAI

 

Overview of Global Private 5G Network Market

Private 5G networks are non-public mobile networks that may use licensed, unlicensed, or shared spectrum. Private 5G networks are intended to improve existing capabilities while also introducing new possibilities that other systems cannot support. With the advent of private 5G networks, the telecom industry is undergoing a paradigm shift and providing businesses with numerous advantages over conventional public networks. Private 5G networks have the potential to completely transform company operations and push the limits of creativity as the need for dependable, secure, and fast connectivity grows.

 

According to a recent analysis by Polaris Market Research, the size of the worldwide private 5G network market is anticipated to reach USD 103,516.54 million by 2032. Private 5G network deployment across sectors is driven by the need for low-latency, secure connection in mission-critical applications. To increase production and operational efficiency, the mining, oil and gas, manufacturing, and energy sectors make significant investments in private 5G telecom services. Over the course of the forecast period, this is anticipated to support market expansion.

 

Recent developments in Private 5G Network market in India

Despite the fact that 5G has been available in the country for two years, enterprise adoption of private networks has been gradual. One reason for this is a lack of compelling use cases, notably in the internet of things (IoT) area, which has not seen much adoption. Additionally, many businesses have discovered that 4G networks and Wi-Fi solutions are adequate for their automation and connectivity requirements. Thus, India still happens to be in the early stages of private 5G development.

 

Telecom companies in the country feel they can best assist enterprises in gaining access to private 5G networks. Meanwhile, organizations or businesses feel that having access to the spectrum will allow them to set up their own private 5G network. This has led to a battle between telecom operators and corporations over private 5G networks. While telcos formerly opposed direct spectrum allocation to corporations for the purpose of establishing captive networks, they now reject any type of licensing or authorization system for enterprises to develop such networks.

 

The newest flashpoint stems from a recent communication by the Telecom Regulatory Authority of India (TRAI) to the Department of Telecommunications (DoT) asking feedback on whether firms should be allowed an authorisation framework to develop private 5G networks. If authorized, certain terms would need to be included in the Telecommunications Act.

 

Telecom companies state that private 5G networks are unnecessary in India, as telecom coverage is widespread. They argue that captive private networks are only relevant in countries with large, sparsely inhabited regions that lack dependable public communication infrastructure.  In India, where public networks already provide ubiquitous connection, telcos argue that there is no reason for corporations to construct their own 5G networks.

 

The Private 5G network battle

The Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel, and Vodafone Idea, stated that Captive Private Networks (CNPNs), which are primarily required in geographically vast and sparsely populated regions where public telecom connectivity is limited or non-existent, are not applicable in the Indian ecosystem.

 

The announcement comes only days after the Telecom Regulatory Authority of India (TRAI) issued its latest recommendations on network authorizations under the Telecommunications Act of 2023. TRAI has proposed a separate authorization framework for CNPN providers under Section 3 of the Act, with the goal of building, maintaining, operating, and growing networks for companies. The Act enables the government to assign spectrum administratively to entities involved in defense, law enforcement, broadcasting services, disaster management, navigation, telemetry, in-flight and marine connectivity, mine safety, port operations, and oil exploration, among other things.

 

Furthermore, technology companies claim that telcos’ objection derives from a fear of losing revenue in the lucrative private 5G market. If corporations are permitted direct spectrum allocation and authorization, they may bypass telecom carriers, resulting in revenue losses for the latter. However, IT firms contend that it is not cost-effective to rely on telecom providers for private 5G implementation. They also draw attention to the dangers of disclosing private company information to outside service providers.

 

Conclusion

There has been slow uptake regarding private 5G in India because of a shortage of use cases and the availability of 4G and Wi-Fi alternatives. One critical problem is the conflict of spectrum allocation between telecom carriers and companies. Businesses expect to have direct spectrum access for their owned networks, and telecom providers argue that private networks are not necessary. The outcome of the regulatory discussions will determine the state of private 5G in India.

 

 

 

 

 

The image added is for representation purposes only

Indian pharma sector surpassed global average export growth 

 

 

 

 

, , 0 Comment
Read More
AstraZeneca Pharma India Q1 2026: Strong Growth and Resilience
Equities, Markets - February 28, 2025

Indian pharma sector surpassed global average export growth 

Indian pharma sector surpassed global average export growth 

 

The Indian pharmaceutical sector is considered as the second biggest supplier of generic medicines in the world. Currently, the sector recorded a significant export growth rate of 9 percent. As per the report of McKinsey & Company, this remarkable growth rate of India’s pharma industry in exports is close to double the growth rate of global average. Though, the sector faces potential challenges due to changes happening in India and around the world.

 

Performance of the Indian pharmaceutical sector

India’s pharmaceutical sector has successfully achieved a growth rate of 9 percent. The sector is now able to meet 20 percent of the global demand. It has succeeded in meeting the demand of US generic drug and UK pharma market up to 40 percent and 25 percent, respectively. 

 

The country has outpaced the USA in terms of number of Food and Drug Administration (FDA) approvals for manufacturing generic medicines. In the year 2024, the Indian pharma sector got about 752 sites approved by FDA and the World Health Organization for Good Manufacturing Practices (WHO GMP) certified around 2,050 sites. The country also got 286 sites approved by the European Directorate for the Quality of Medicines (EDQM).

 

In the last ten years, the number of times US FDA found “Official Action Indicated” or “OAI” has significantly contracted to 50 percent. Apart from this, the European Medicines Agency (EMA) also recorded a decline in non-compliance issues to 27 percent. It indicates that Indian pharmaceutical companies are successfully meeting the quality and safety standards of both European and the US markets.

 

Growth drivers of the remarkable performance

Indian pharma companies have a cost advantage of 30 to 35 percent against European and the US pharma manufacturers. The reason for this is robust improvement in operational efficiency, integration of digital technology, and lower costs of labour.

 

The pharma sector in India recorded a CAGR of 8 percent which is double the CAGR of global average. It boosted India’s capability to manufacture active pharmaceutical ingredients (APIs) and biotechnology. 

 

Due to holding a cost advantage of 30 to 35 percent compared to Western countries in the world, India continues to be a popular choice for outsourcing. The country has recorded a robust CAGR of 13 to 14 percent in new and advanced treatments like cell and gene therapies, monoclonal antibodies, and mRNA. It has successfully outpaced the growth rate of traditional medicines. 

 

Potential growth for the sector

The growth of Indian pharma driven by AI and generative AI-driven advancements can possibly lead to additional revenue growth of 60 billion to 110 billion dollars. It could lead to a boost in margins by about 4 to 7 percent and a 50 percent expansion in productivity of the sector.

 

In recent times, the major five Indian contract development and manufacturing organizations (CDMOs) have injected funding of 650 million dollars in order to strengthen their capabilities. It will boost India’s position in the international pharmaceutical supply chains.

 

Challenges faced by the sector

Despite the robust growth of India’s pharmaceutical industry, it faced certain challenges of consistently adopting smart automation and digital advancement. It also has to keep pace with the new emerging treatments which are going to transform the way medicines are manufactured and used. 

 

Apart from this, it faced potential concerns like rising trend of nearshoring and geopolitical tension in the world. The world is facing expansion in demand for sustainable practices. India’s pharmaceutical industry has to find its path to continue its strong growth and development in the midst of these potential challenges in the world.

 

India’s pharmaceutical firms must focus on achieving cost-efficiency, error-free production, focus on sustainable practices and improvement in use of AI and digital tools.

 

In conclusion, the Indian pharmaceutical industry is strong due to robust development of the industry in the last 10 years. It has built a strong foundation for the industry. Though, the industry is going to face some challenges due to the changing trends in India as well as in the world. Pharma companies in India have to reevaluate their operational activities in order to achieve robust growth and maintain their position as global leaders in the market. 

                                                 

 

 

The image added is for representation purposes only

CRDMO Sector to boom by 2035

 

 

 

 

, , 0 Comment
Read More
Bharti Airtel Stock May Soar to ₹2,350 as Growth Prospects Strengthen
Equities, Markets - February 27, 2025

Airtel in no rush to implement 5G network

Airtel in no rush to implement 5G network 

 

Overview of 5G market in India

The Indian 5G market is expected to develop at a compound annual growth rate (CAGR) of 43.8% from 2023 to 2031, from its 2022 valuation of USD 7,065 million to USD 1,78,546.1 million by 2031. India is the fourth largest market for 5G phones, with a 14% share in the June quarter, according to reports. India is currently in the early stages of adopting consumer 5G services, with 18% of mobile customers expected to use the technology by 2025.

 

Speaking about the landscape of 5G services in the Indian telecom sector, Jio has the largest 5G client base whereas, Airtel’s 5G network is now accessible in a number of states, with ambitions to extend nationwide soon. Additionally, Vodafone Idea plans to deploy its 5G services in the near future.

 

Reliance Jio, India’s telecom market leader, is the only telco that has chosen a 5G SA network – in which all of its infrastructure or cell sites broadcast solely 5G signals – from the start, in 2022, after investing in efficient but expensive sub-GHz 5G airwaves in the 700 MHz range. Airtel, on the other hand, chose a non-standalone 5G network that makes use of existing 4G network infrastructure and airwave resources, resulting in far lower capital expenditure than Jio.

 

Recently, Bharti Airtel has announced plans to move its 5G services to a standalone (SA) network in one or two cities within three years, albeit they would continue to use non-standalone (NSA) mode due to high 4G traffic. The shift’s goal is to use mid-band spectrum and create sustainable monetization applications for 5G technology.

 

Airtel to delay 5G Standalone

Bharti Airtel plans to transition its 5G services to a standalone (SA) network from the non-standalone (NSA) mode in one or two cities over the next three years. However, India’s second-largest telco still has a high volume of traffic on its 4G bands and that switching modes provides no tangible benefit to subscribers.

 

The executive lamented that, even after three years of debut, 5G has yet to generate any new revenue streams for telecom operators in India or elsewhere in the world, with speed remaining the only differentiation from 4G.

 

Reasons for delaying boarding the 5G wagon

Transitioning to SA involves a considerable expenditure, estimated at Rs 30,000-40,000 crore, primarily for the acquisition of sub-GHz spectrum. Airtel prefers to wait for 4G spectrum bands to progressively clear as traffic shifts to 5G.

 

Furthermore, 5G network utilization is currently low, with Airtel focusing on expanding its 4G network to convert remaining feature phone users to smartphones. This poor utilization does not justify the immediate deployment of 5G infrastructure. In terms of technological and strategic factors, Airtel is deploying non-standalone (NSA) 5G infrastructure that uses current 4G infrastructure. This arrangement is inexpensive and enables devices to smoothly move between 4G and 5G networks. Airtel intends to move to SA over the next three to four years as demand grows and more people upgrade from 4G.

 

In terms of monetization challenges, 5G services now have limited monetization prospects, making rapid expansion less appealing. Airtel is pushing the conversion of 4G consumers to 5G services, which cost more. Airtel plans to transition its Fixed Wireless Access (FWA) services to SA by December 2024, adopting a deliberate approach to deploy SA for certain use cases rather than a full-scale implementation.

 

Thus, currently, SA has no benefits for Airtel as there are no applications that capitalize on the technology. It was anticipated that in three years, networks would emerge in one or two places with plenty of spectrum and increasing traffic with customers not likely noticing the difference between SA and NSA.

 

                                                   

 

 

The image added is for representation purposes only

Oil India Ltd. plans to expand oil and natural gas production in the upcoming years

 

 

 

 

, , 0 Comment
Read More
US Airstrike on Iran: Oil Shock for India
Equities, Markets - February 27, 2025

Oil India Ltd. plans to expand oil and natural gas production in the upcoming years

Oil India Ltd. plans to expand oil and natural gas production in the upcoming years

 

Oil India Ltd, a public-owned company in India plans to expand its crude oil and natural gas production in the upcoming financial years. It anticipates the start of production from some blocks in the near term.

 

The company has a goal to expand crude oil and natural gas production to 4 million tonnes and 5 billion cubic metres, respectively, in the upcoming financial years. Additionally, it is positive about the start of drilling work in the Kerala-Konkan region by the month of October, 2025. 

 

Present business operations of the company 

Currently, Oil India is using about 20 drilling rigs for its production activity. It intends to increase the number of drilling rigs to 24 in the upcoming 6 months. 

 

The total acreage of the company is around 60,000 square kilometers in the present times. It will get an additional acreage of 50,000 square kilometers under the 9th round of Open Acreage Licensing Policy (OALP). It will result in a total operating acreage of 1 lakh square kilometers. 

 

Future Plans of Oil India

In the current financial year, the company’s goal is to produce 3.8 billion cubic meters of natural gas and 3.8 million tonnes of crude oil. In the previous financial years, Oil India recorded an annual growth rate of 5 to 6 percent in production each year. Additionally, it aims to expand its operating acreage. 

 

The company also plans to do international partnerships or joint ventures in the upcoming years. It is currently in interaction with a number of international oil entities like PPT Exploration and Production Public Company, TotalEnergies, Petronas and Chevron. It wants to work on offshore hydrocarbon blocks. The main aim of these tie-ups is to expand the exploration and production capabilities of the company in the offshore areas as well. The company is planning to conduct seismic studies, which will help in finding oil and gas.

 

International oil companies are quite interested to work with Oil India in offshore projects acquired under the 9th and 10th round of OALP. 

 

Additionally, Oil India plans to partner with major Indian oil companies for its new international projects. These companies include Indian Oil Corp and ONGC Videsh. The company stated that it would want an international company to take charge of operating the block, in case of tie-up with an international entity.

 

Further the company has plans to diversify its mining activities of critical minerals. In the present times, the company secured a block in Arunachal Pradesh that contains graphite and vanadium. The company plans to start its exploration operations in the upcoming financial year 2026. 

 

Oil India already has an exploration license from the state government. It is currently working on getting permissions from the local population. In present times, it is looking for any potential partners for exploration and mining activities. 

 

 

 

The image added is for representation purposes only

CRDMO Sector to boom by 2035

 

 

 

 

, , 0 Comment
Read More
Murae Organisor Reports Promising Q1 2026 Results: A Positive Start to the Fiscal Year
Equities, Markets - February 27, 2025

CRDMO Sector to boom by 2035

CRDMO Sector to boom by 2035

 

Overview of CRDMO Sector

The Contract Research Development and Manufacturing Organization (CRDMO) market in India is expanding at a rapid pace, owing to a combination of favorable factors such as cost benefits, technology improvements, and a solid regulatory environment.

 

According to a research, India’s Contract Research Development and Manufacturing Organization (CRDMO) sector is at a tipping point and has the potential to grow to USD 22-25 billion by 2035. According to a survey by Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organization (IPSO), India now accounts for 2-3% of the USD 140-145 billion worldwide CRDMO market but it has the skill and potential to grow in years to come.

 

Tailwinds driving growth

Four important tailwinds propelling sector growth include an effort to de-risk supply chains, which has made India a desirable outsourcing location. Furthermore, economic pressures and laws such as the Inflation Reduction Act (IRA) are driving outsourcing, while increased demand for advanced modalities such as ADCs, gene therapy, and RNA therapies is boosting specialized CRDMO services, according to the report.

 

Challenges to overcome

As per the report, the sector must overcome five major difficulties in order to grow sustainably. To lessen dependency on imports, the sector needs 6-7x more personnel by 2035, speedier regulatory clearances, and a stronger tier 1 supplier base. Limited funding and high capital costs impede the required 4-5x investment, while ESG compliance remains behind Western rivals, according to the report.

 

Vikash Agarwalla, Managing Director and Partner at BCG, remarked that the CRDMO business is entering a period of rapid expansion with numerous tailwinds. The BCG report illustrates how India’s natural capabilities, small molecule knowledge, cost competitiveness, and quickly increasing innovation ecosystem serve as a springboard to becoming a dominating player in the global CRDMO market. However, unleashing this full potential will require a collaborative effort from both industry and policymakers.

 

Government Initiatives driving the CDMO sector

India’s federal government has played a critical role in supporting the CDMO business in the pharmaceuticals manufacturing segment through targeted incentives and legislative frameworks. The PLI initiative, which has a budget of INR 150 billion (US$1.72 billion) for promoting home manufacturing of important Key Starting Materials (KSMs)/drug intermediates (DIs) and APIs, intends to boost domestic drug production while reducing import dependency. Furthermore, the central government has set out INR 69.4 billion (US$799.9 million) to encourage domestic API and bulk medication manufacturing.

 

Investments towards the CDMO sector

Several top CDMO enterprises in India are making significant expenditures to improve their capabilities and broaden their service offering. Aurigene Pharmaceutical Services, a subsidiary of Dr. Reddy’s, has opened a biologics facility in Hyderabad’s Genome Valley (Telangana) to produce therapeutic proteins, antibodies, and viral vectors. This facility, which has been operational since June 2024, provides comprehensive clinical research and commercial production services.

 

In January 2024, it was reported that Aragen Life Sciences, a global Contract Research, Development, and Manufacturing Organization (CRDMO), will invest INR 20 billion (US$230.5 million) in Telangana to grow its presence in drug research, development, and manufacturing.

 

Another crucial investment was done by Laurus Labs, a worldwide pharmaceutical and biotechnology firm headquartered in Hyderabad, is expanding by INR 9.9 billion (US$114.1 million), transitioning from API research to antiretrovirals and intermediates, with the United States and Europe accounting for 60 percent of its income.  Another Telangana-based pharmaceutical business, Jubilant Pharmova, has invested US$370 million to expand its sterile injectable capacity in Spokane and Montreal, bolstering its North American expansion prospects.

 

Conclusion

India’s CRDMO industry has immense growth potential and can achieve up to USD 22-25 billion by the year 2035, stimulated by beneficial determinants of cost competitiveness, research and development progress, and bolstering regulatory frameworks. Although challenges of increased need for skilled talent and improvement in infrastructure exist for the industry, policy measures and foreign investments are continuously working on it. The nation’s developing innovation ecosystem, cost competitiveness, and small molecule expertise make it a leading candidate to dominate the global CRDMO market. To realize this potential, however, will need sustained partnership between industry players and policymakers to address challenges and unlock the sector’s full growth potential.

 

 

The image added is for representation purposes only

Reasons behind forced apparel discounts

 

 

 

 

, , 0 Comment
Read More
Aditya Birla Group: Billion-Dollar Fashion Ambition!
Equities, Markets - February 27, 2025

Reasons behind forced apparel discounts

Reasons behind forced apparel discounts

 

Apparel retailers in India sold close to 40 percent of their clothing products by giving discounts or end-of-season sale (EOSS). The reason for this is due to these retail stores having more inventory stock than they can sell. It indicates the mismatch between the planned inventory of the store and its actual sales. 

 

Reasons for forced discounts on apparels

The retailers often faced the issue of having more inventory stock of clothing products than their actual sales. It leads them to give discounts or end-of-season sales to reduce the inventory. Apart from this, retailers also face issues with the supply chain in the market. It often faced the issue of delayed delivery of clothing products to their retail stores. The delay can occur in between 7 to 30 days resulting in contraction in the time period to sell products at their full price. It forces most of the retailers to implement discounts in order to clear their inventory. This information is based on the survey conducted on 100 companies by Vector Consulting Group and Nielsen IQ on apparel industry.

 

Impact of discounting on margins

Though discounts boost sales in the market, it adversely affects the margins of the company. The CEO of lifestyle business, at Aditya Birla Fashion and Retail, Vishak Kumar stated that the company is trying to limit their discounts by creating a balance between physical stores and online channels which will lead to healthy sales growth. 

 

However, the task of balancing the stocks between different channels manually is quite time-consuming and inefficient in nature. The apparel brands have to decide their clothing collection prior to 6 to 9 months. It is the reason why it is difficult to project future demand in the market accurately. It often results in unsold clothing product stock in the stores. Additionally, some products which are trendy get sold out but some remain in the inventory only. 

 

The expansion in inventory stocks than the actual sales results in serious issues in terms of financial and operational functioning of the brands. 

 

Festive seasons are often considered good for the apparel brands. Many retailers recorded strong growth in the festive season. However, it faced subdued demand in the winter season later. According to V-mart, it is difficult to project dynamics of seasonal demand. V-mart faced subdued demand for apparels in the winter season. It stated that in this situation, stores have to either give a bit of discount in order to reduce inventory or it has to face some leftover stock in the stores.

 

Approach of retail brands

Many apparel brands are taking efforts to limit forced discount offerings in order to maintain stable margins. The companies are focusing on expanding their channel mix, particularly online channels. Arvind Fashions was successful in achieving full price on its sales. It delayed offering discounts and did not have end-of-season sales.  

 

The company believes that focusing on discounting and thinking it as a solution to reduce inventory leads to low-quality growth. Its main purpose is to remove business strategies resulting in low-quality growth. It also closed its under-performing stores. It resulted in contraction in total store space of the company in the first half of the previous year. The company is now focusing on growth driven by online channels.

 

 

 

The image added is for representation purposes only

Airfare to rise marginally if tariff proposal accepted

 

 

 

 

, , 0 Comment
Read More
Airfare to rise marginally if tariff proposal accepted
Equities, Markets - February 27, 2025

Airfare to rise marginally if tariff proposal accepted

Airfare to rise marginally if tariff proposal accepted

 

Overview

Delhi International Airport Limited (DIAL) CEO Videh Kumar Jaipuriar stated on Wednesday that if the Airports Economic Regulatory Authority (AERA) accepts the tariff proposal that DIAL submitted, the cost of tickets for travelers going to and from the airport will increase by no more than 1.5%. The largest airport in India, DIAL, which is run and managed by the GMR Group, has asked the AERA to increase the user development fee (UDF) for first-class and international business travelers over the next four years in comparison to economy and premium economy.

 

Marginal hike in airfare

The aeronautical tariff for IGIA for the five-year period ending March 31, 2029, is presently being determined by the Airports Economic Regulatory Authority of India (AERA). DIAL had filed a suggested tariff card as part of the process, which would have imposed costs that were much higher than the current rates. The plan sparked rumors that, should AERA approve the increased charges, flying to and from the Delhi airport might become more expensive.

 

However, according to DIAL, the effect on airfares is only anticipated to be slight. Given that the company has a large amount of capital expenditures and debt, the operator claims that raising tariffs is essential to its ability to stay financially viable and keep investing in the airport. Stakeholder engagements are ongoing as part of the tariff-determining process, and AERA will undoubtedly have the last word in the tariffs.

 

Current composition of aeronautical taxes and Recent DAIL suggestions

Airline levies such as landing and parking fees, which the carriers pay, and user development fees (UDF), which customers pay directly, are examples of aeronautical taxes that have an indirect effect on airfares.

 

DIAL has suggested differing usage fees for customers traveling in business and economy, with the latter being required to pay extra. Additionally, it has suggested charging more for flights that operate during morning and evening peak hours than for flights that operate at other times. This is the first time an airport operator in India has requested varying rates depending on the travel class and time. Furthermore, DIAL has suggested charging travelers traveling to Delhi an additional UDF.  At the moment, passengers must pay the UDF when they depart.

 

The current effective fare for passengers, both local and international, who travel straight to the airport is approximately Rs 129 per departing passenger. The UDF is set at Rs 405-610 per passenger for domestic flights in 2025-26 (FY26) and FY27, and Rs 210-315 for FY28 and FY29, according to the proposed tariff card that DIAL presented. The suggested UDF for domestic flights arriving in Delhi is Rs 140–210 per passenger in FY26 and FY27, and Rs 80–115 per passenger in FY28 and FY29. The planned UDF for international flights is much higher, at Rs 810-1,620 per leaving passenger for FY26 and FY27, and Rs 430-860 for FY28 and FY29.  The planned tax for arriving foreign passengers is Rs 150-300 for FY28 and FY29, and Rs 280-570 for FY26 and FY27.

 

DIAL’s estimates indicate that the proposed tariff hikes would have little effect on airfares, despite the fact that the proposed UDF hikes are clearly significant. According to Jaipuriar, DIAL’s average yield per passenger (YPP) would increase from the current Rs 145 to Rs 370. However, since airport taxes make up a minor portion of the cost, the impact on airfare would be minimal at most.

 

DIAL’s Debt Struggles and Potential Impact on Future Operations

Jaipuriar claims that DIAL has made significant investments in the IGIA’s development over the last 20 years, resulting in the operator’s excessively large debt. The largest expense that has prevented DIAL from being profitable is the interest paid on its debt, which has resulted in losses of about Rs 2,900 crore. This is mostly due to the fact that such major infrastructure projects necessitate frontloading capital expenditures and taking out large loans.  However, DIAL has not experienced any operational losses.

 

DIAL maintains that it might have to take out new loans to pay off its current debt if the projected tariff increase doesn’t happen. Jaipuriar claims the operator is sitting on more than Rs 14,000 crore in debt and that its equity is eroding. If these issues are not resolved, the DIAL’s credit ratings may suffer and its borrowing costs may rise.

 

According to Jaipuriar, DIAL has invested over Rs 30,000 crore in the IGIA over the last nearly two decades, with an additional Rs 25,000 crore going to the government-owned Airports Authority of India (AAI) under the revenue sharing arrangement between DIAL and AAI.

 

Conclusion

DIAL’s tariff hike proposal, which will have a nominal effect on airfares, is necessary to help tackle its rising debt and financial issues. The airport has invested substantially on the development of IGIA, which has cost it heavily in the form of heavy interest payments. Although DIAL has not incurred operational losses, the fee hike proposals are necessary for its financial health. The ultimate discretion is with AERA, and if the increase in tariff is rejected, DIAL may incur increased financial stress and higher interest costs.

 

 

 

 

 

The image added is for representation purposes only

Microfinance sector recorded surge in NPAs to Rs. 50000 crore

 

 

 

 

, , 0 Comment
Read More