Output growth across India’s private sector regained growth in June with business activity increasing at quicker rates among manufacturing companies and services firms while hiring of workers shot up to an 18-year high, according to HSBC’s flash PMI data released on Friday.

There was also a substantial upturn in aggregate employment amid robust expansions in total new orders intakes and international sales, according to the data, compiled by S&P Global.

New orders gained growth momentum for both sectors, with a faster upturn among manufacturers as a result, capacity pressures became evident in June, leading firms to increase their staffing levels to the greatest extent in over 18 years.

The services Purchasing Managers’ Index (PMI) climbed to 60.4 in June 2024 from 60.2 in May, while the manufacturing purchasing managers’ index increased to 58.5 in June from 57.5 in the previous month.

India’s manufacturing activity had slipped to a three-month low of 57.5 in May, as intense heatwaves led to reduced working hours and impacted volumes.

Meanwhile, services sector growth had softened to a five-month low in May following stiff competition and price pressures amid a severe heatwave.

“The composite flash PMI ticked up in June, supported by rises in both the manufacturing and service sectors, with the former recording a faster pace of growth. New orders gained growth momentum for both sectors, with a faster upturn among manufacturers. Meanwhile, new export orders slowed slightly in June, although the rate of expansion was the second fastest since the beginning of the series,” said Maitreyi Das, Global Economist at HSBC.

Input cost inflation eased slightly in June, but remained elevated with panellists citing increases in labour and material costs. The output price index suggests manufacturing firms were able to pass on higher costs to customers, the survey states. AGENCIES

Quick delivery platform and Blinkit’s rival Zepto on Friday said it had raised $665 million at a $3.6 billion valuation in a highly oversubscribed round — just nine months after the company raised $235 million at a $1.4 billion valuation.Avenir, Lightspeed and Avra (Anu Hariharan’s new fund) joined the company’s cap table as new investors, among others.

Existing investors Glade Brook, Nexus, and StepStone co-led the round with Goodwater and Lachy Groom doubling down as well, the company said in a statement.

“This dynamic of stores turning profitable faster and faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level,” said Aadit Palicha, Zepto’s Co-founder and CEO.

“We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business,” he added.

If the company is able to achieve this while continuing to delight customers, “I believe we will be ready to go public relatively soon.”

In terms of business performance, Zepto’s gross merchandise value (GMV) has multiplied year-on-year to a base of more than $1 billion, and 75 per cent of the company’s stores are fully EBITDA positive (as of May).

With the new round of funding, “We plan to hire top talent across engineering, product, growth, finance, operations, and category management,” said Kaivalya Vohra, Co-founder and CTO, Zepto.

Founded in 2021 by Stanford University dropouts, Aadit Palicha and Kaivalya Vohra, Zepto became one of India’s fastest-growing internet companies.

Headquartered in Mumbai, Zepto delivers over 10,000 products, ranging across categories in 10 minutes.

“The Zepto team embodies what is possible for the next generation of Indian founders, and Glade Brook could not be more excited to continue our partnership,” said Paul Hudson, CIO of Glade Brook Capital Partners. AGENCIES

Strengthening the presence of Brand Storii, ITC’s Hotel Group has announced the signing of two Storii resorts in Rajasthan.

With these signings, the chain’s portfolio of managed properties continues its high growth trajectory through the asset right strategy.

Expected to open in early 2025, Storii by ITC Hotels, Jaipur, and Storii by ITC Hotels, Jawai, will exemplify the brand’s ethos to offer immersive experiences. Including the recently announced signing of Storii Jaisalmer, Brand Storii will now have a total of three properties in Rajasthan.

Speaking on the expansion of Brand Storii, Anil Chadha, Chief Executive, ITC Hotels, said, “Brand Storii is a diverse collection of properties that tell their own unique story. Staying true to the nature of the brand, Storii Jaipur and Storii Jawai are set to weave their own stories for our guests through their offerings. The location of the two resorts is perfect for travellers looking to experience the destination while also exploring culture reminiscent of a glorious heritage.”

Thakur Mansingh Kanota, Owner, Castle Kanota, expressed his elation saying, “Built in 1872, Castle Kanota was the intended official family residence for the Kanota family. We have since hosted many a dignitary and are now in the process of expanding the property into a heritage resort. As the needs of the typical traveller change towards experiential, we trust ITC Hotels to bring its expertise and nuanced hospitality to this property with brand Storii.”

Vinita Rathore, Owner, Storii by ITC Hotels, Jawai, said, “Jawai has come into its own as a wildlife destination in recent years. We are confident that our premium product along with ITC Hotels’ hospitality expertise will enable Storii Jawai to position itself as a preferred destination for high-end leisure travelers and wildlife enthusiasts in years to come.” AGENCIES

 Ambuja Cements and ACC Limited, the cement and building material companies of the Adani Portfolio, on Friday said they are excited to unveil their commitment towards innovation that will redefine the construction landscape through a series of visionary digital initiatives.

The cement and building material companies are at the forefront of facilitating swift decision-making and improved customer service by leveraging Artificial Intelligence (AI), Internet of Things (IoT), video analytics and optimisation capabilities.

“Ambuja Cements and ACC’s digital initiatives emerge as a beacon of progress. The process of modernising the entire digital landscape, as well as using AI & IoT technologies for enhancing the plants stand as a testament to the company’s unwavering commitment to progress,” said Ajay Kapur, CEO, Cement Business, Adani Group.

At the forefront of this initiative is the development of the NexGen Sales and Reward Platform, a forward-looking digital ecosystem designed to foster seamless collaboration among customers, channel partners, retailers, influencers and sales partners by streamlining coordination and operations on a modern technology stack.

By standardising and simplifying business processes, the companies aspire to significantly enhance outcomes for internal teams and external collaborators, said the firms.

In addition, Ambuja Cements and ACC are implementing the ‘Plants of the Future’ programme to digitally transform manufacturing processes to improve production quality and reduce costs.

This includes incorporating robotics for automation, automated weighbridges, in-plant automation, automated quality testing, robotics process automation for plant shutdown management, and drones for maintenance.

“Teaming up with the Adani Group’s AI Labs will seamlessly enable harnessing the power of Artificial Intelligence through the integration of AI models, including Generative AI capabilities, video-based analytics and optimiser functionalities,” the companies noted.

Furthermore, the companies are implementing their advanced logistics and fleet management tools by revamping vehicle tracking and transportation management systems.

Ambuja, with its subsidiaries ACC Ltd. and Sanghi Industries Ltd has taken the Adani Group’s cement capacity to 78.9 MTPA with 18 integrated cement manufacturing plants and 19 cement grinding units across the country.

ACC has 20 cement manufacturing sites, over 82 concrete plants and a nationwide network of channel partners to serve its customers. AGENCIES

 At least 152 Indian startups are on track to turn unicorns from 31 cities over the next 3 to 5 years to its current tally of 67 unicorns, a new report has said.

As per ASK Private Wealth Hurun India Future Unicorn Index 2024, India is presently home to 67 unicorns, 46 gazelles, and 106 cheetahs, as against 68 unicorns, 51 gazelles, and 96 cheetahs in the 2023 index.

The report has classified startups as unicorns — startups founded after the year 2000 with a valuation of $1 billion, gazelles — startups that are most likely to go unicorn in the next three years, and cheetahs — startups that could go unicorn in the next five years.

The fintech sector has the most gazelle companies at eight, followed by SaaS with six. Artificial intelligence (AI) and edtech both have five gazelles.

Some of the top gazelles featured in the index include edtech startup Leap Scholar, fintech startup Money View, and agritech startup Country Delight. Following closely are agritech startup Ninjacart and SaaS startup MoEngage.

“This year’s index saw notable promotions. Online travel aggregator ixigo, a former cheetah, went public with a 48 per cent premium. In 2022, ixigo was predicted to become a unicorn within five years, and it has now leapt directly to an IPO, bypassing the gazelle status,” said Anas Rahman Junaid, MD and Chief Researcher, Hurun India.

He further mentioned that Zepto, Porter, and Incred Finance achieved unicorn status, while 10 cheetahs were promoted to gazelles, highlighting the “resilience and dynamism of India’s startup landscape”. AGENCIES

Indian equity frontline indices opened in green on Tuesday following positive global cues. In the early trade, Sensex and Nifty made a new all-time high of 77,326 and 23,573 respectively.At 9:45 a.m., Sensex was at 77,315, up 322 points or 0.42 per cent, and Nifty was up 94 points or 0.40 per cent, at 23,559.

On NSE, 1735 shares are trading in the green and 348 shares are trading in the red mark. The Nifty Midcap 100 index is up 140 points or 0.25 per cent at 55,365 and the Nifty Smallcap 100 index is at 18,171, up 127 points or 0.71 per cent.

Among the sectoral indices, Auto, IT, PSU, FMCG, Metal, Realty, and Energy indices are major gainers, while Pharma and Fin Services are major laggards.

Wipro (NS:WIPR), Titan (NS:TITN), M&M (NS:MAHM), Tech Mahindra (NS:TEML), Infosys (NS:INFY), Power Grid (NS:PGRD), NTPC (NS:NTPC), Bharti Airtel (NS:BRTI), Tata Motors (NS:TAMO), HCL Tech (NS:HCLT), SBI (NS:SBI) and L&T are the top gainers. Maruti Suzuki (NS:MRTI), Kotak Mahindra (NS:KTKM), HDFC Bank (NS:HDBK), Reliance (NS:RELI), ICICI Bank (NS:ICBK) and TCS (NS:TCS) are the top losers.

Deven Mehata, Research Analyst, Choice Broking said, “After a gap up Opening Nifty can find support at 23,400 followed by 23,300 and 23,200. On the higher side, 23,550 can be an immediate resistance, followed by 23,650 and 23,700.”

“The charts of Bank Nifty indicate that it may get support at 49,800, followed by 49,700 and 49,500. If the index advances further, 50,200 would be the initial key resistance, followed by 50,350 and 50,500.” Mehata added.

Most of the markets in Asia are trading in the green. Tokyo, Shanghai, Bangkok, and Seoul are in the green. However, the markets of Hong Kong and Jakarta are in the red. American markets closed with gains on Monday. Crude oil benchmark Brent crude is at $84 per barrel and WTI crude is at $79 per barrel. AGENCIES

 A surge in housing supply resulted in a nearly 50 per cent drop in rental price growth in top cities in the second quarter this year (to date) — registering a 2-4 per cent quarterly rise which is down from 4-9 per cent in the first quarter this year, a report showed on Tuesday. With more new supply entering the markets, a highly speculative residential rental spike is coming to a halt, according to the latest Anarock data.
The top seven cities are set to deliver nearly 5.31 lakh new units in 2024 while in 2023, these cities saw about 4.35 lakh units being delivered. This denotes a 22 per cent annual supply increase this year if delivery schedules remain on track. “In India, the second quarter of most years typically sees rents increase more than in other quarters due to the commencement of the new academic year and the employment of new staff,” said Santhosh Kumar, Vice Chairman, Anarock Group. Also Read – Chhagan Bhujbal demands caste census in India ADVERTISEMENT This year, declining rental value growth coincides with substantial new housing supply entering these markets, he added. Average rents for a standard 1,000 sq feet 2-BHK accommodation in Bengaluru’s Whitefield rose by 4 per cent in Q2 — from Rs 32,500 a month in Q1 to Rs 35,000 a month in Q2 (to date). In Q1 2024, the quarterly jump against Q4 2023 was doubled at 8 per cent for the same flat in Bengaluru. Also Read – Sharad Pawar urges Shinde to call meeting to mull ways to end drought in Pune District ADVERTISEMENT In Noida Sector 150, the average rent rose by a mere 4 per cent — from about Rs 24,000 per month in Q1 to approximately Rs 25,000 a month in the current quarter. The quarterly hike stood at 9 per cent in Q1 against Q4 2023. Sohna Road in Gurugram and Dwarka in Delhi saw their respective quarterly rents increase by 3 per cent and 2 per cent in Q2 2024; in Q1 2024, the hikes stood at 4 per cent and 6 per cent, respectively, the report showed. Mumbai Metropolitan Region’s (MMR) key markets Chembur and Mulund saw average rents rise by just 2 per cent against the preceding quarter (Q1 2024). In Q1 2024, they rose by over 4 per cent against Q4 2023.

AGENCIES

Riding on supportive policy interventions, investment in India’s key infrastructure sectors — renewable energy and roads – and real estate are likely to grow 38 per cent in the fiscals 2025 and 2026, compared with the previous two fiscals, to Rs 15 lakh crore, a report showed on Tuesday.

The surge, according to CRISIL Ratings, will ride on India’s need for creation of sustainable infrastructure by adding more green power to the energy mix, improving physical connectivity through a denser road network, as well as rising demand for residential and commercial real estate.

For renewables, the key growth driver is demand for sustainable energy transition.

The government’s target is driving up auctions, which has created a strong pipeline, the report mentioned.

“The underlying demand drivers in these three sectors remain strong, with regular policy interventions fuelling investor interest. This has also supported healthy credit risk profiles of private players and strengthened their execution and funding capabilities,” said Krishnan Sitaraman, Senior Director and Chief Ratings Officer, CRISIL Ratings.

India saw auctions of 35 GW in fiscal 2024, the highest-ever in a single fiscal, resulting in a strong pipeline of 75 GW.

This will primarily drive implementation of 50 GW capacity over the next two fiscals, said the report.

When it comes to the roads sector, the need for improved physical connectivity, which helps in efficiency gains for the economy, has driven healthy awarding over the past few fiscals, barring the last one.

“Strengthened order books of road developers, at 2.5 times of revenue, will support 11 per cent growth in highway construction, which is seen at 12,500 km per year over the next two fiscals,” the report noted.

As for real estate, net leasing of commercial office space will see demand growth of 8-10 per cent in this fiscal and the next. “Cumulatively, Rs 2 lakh crore of equity capital has been deployed in these sectors over the past two fiscals driven by strong investor participation,” said Manish Gupta, Senior Director and Deputy Chief Ratings Officer. AGENCIES

The government on Thursday rolled out an initiative under which steel makers will add ‘Made in India’ labels to their products to promote locally-made goods at the global level. The move is aimed at realising Prime Minister Narendra Modi’s ‘Make in India’ vision, Union Steel Minister Jyotiraditya M Scindia said.
In the first phase, all Integrated Steel Players (ISPs) have been included under the initiative to introduce branding and labelling of ‘Made-in-India’ steel products in the global market, the Ministry of Steel said in a statement. The Secondary Steel Industries (SSIs) will join the initiative in the second phase, it said.
Scindia chaired a consultative committee meeting to discuss the progress on the first-of-its kind initiative by the Ministry of Steel and the Ministry of Commerce and Industry to introduce branding and labelling of ‘Made-in-India’ steel products in the global market. Apart from making Indian steel products more attractive to buyers, this would also ensure standardised quality of goods, it said.
Minister of State for Steel Faggan Singh Kulaste, along with heads of various steel PSUs, attended the meeting here.
During the meeting, he highlighted “the significance of branding in promoting the Indian steel industry and realising the PM Narendra Modi’s ‘Make in India’ vision.”
He also emphasised on the efforts to build India as a manufacturing centre of the world, which requires a unified and distinctive identity for Indian steel that reflects its quality, innovation, and sustainability practices.

“It is the first ever initiative by any ministry to introduce labelling and branding of the sector’s products. The Ministry of Steel is the first ministry to come up with such a branding exercise, where a single brand identity for Indian-made steel will represent India’s strong manufacturing potential,” Scindia said.
‘Made in India’ branding has been rolled out for select products of all major ISPs.
ISPs-QCI (Quality Council of India) portal Application Programming Interface (API) integration has also been completed for label and QR code authentication, he said.
The rollout will be extended to include more products, as well as those by the SSIs in the next phase, the minister said.
“All ISPs, and 65 per cent of India’s steel products have been on-boarded with common labels finalised for all the product categories. Size and space for the Made in India logo has been allocated for each label,” the ministry said.
Made in India text will be used till the logo is finalised by DPIIT, it said.  IANS

New HAL order to further boost India’s self-reliance in defence manufacturing

In a fillip to the ‘Make in India’ initiative and strengthening self-reliance in defence manufacturing, Hindustan Aeronautics Ltd (HAL) has received a request for proposal (RFP) by the Ministry of Defence for procurement of 156 light combat helicopters (LCH).

The news led to a more than 4.3 per cent jump in HAL shares to Rs 5,427 in morning trade on Tuesday. On Monday, the HAL stock jumped 4.62 per cent.

“We would like to inform that a Request for Proposal (RFP) has been issued by the Ministry of Defence for the procurement of 156 Light Combat Helicopters (90 for the Indian Army and 66 for the Indian Air Force (IAF),” said HAL in a regulatory filing.

The tender is expected to be worth Rs 45,000-Rs 50,000 crore with helicopters to be acquired by the Indian Air Force and Indian Army.

HAL saw its consolidated revenue jump of 52.19 per cent to Rs 4308.68 crore in Q4 FY24 as compared to Rs 2,831.19 crore in Q4 FY23.

The revenue from operations increased 18.36 per cent YoY to Rs 14,788.75 crore during the quarter. Meanwhile, the move by the Ministry of Defence to procure 156 light combat helicopters further emboldens the vision of Defence Minister Rajnath Singh towards achieving self-reliance in defence manufacturing.

“Under the leadership of Prime Minister Narendra Modi, our aim will be to further strengthen the security apparatus of the country, with a focus on achieving self-reliance in defence manufacturing,” said Minister Singh after assuming charge in the new BJP-led NDA government this month.

The policy of boosting defence production as part of the drive towards an ‘Aatmanirbhar Bharat’ is increasingly reflected in the rising order books of the country’s defence equipment manufacturing companies and underlines a positive outlook for the sector ahead.Bengaluru-based Bharat Electronics Limited (BEL), a key player in the country’s defence industry, has an order book that stands at a robust Rs 75,934 crore.

Before the new 156 light combat helicopters’ order, HAL had an order book of Rs 38,561 crore and is poised for a bigger leap in technology as India and the US are ready to sign an agreement for the manufacture of advanced GE engines for military planes at HAL’s facilities.

Larsen & Toubro, another major player in the defence industry, has an extensive order book worth a staggering Rs 94,000 crore. The government’s plan of stepping up defence exports aims to catapult India as a major player in the global defence market. AGENCIES

As the majority (63 per cent) of Life Sciences organisations, across biopharma and medtech, have connected health products already on the market or under development, the industry anticipates that connected health will contribute more than one-fifth of their total revenue (22 per cent) in the next five years, a new report showed on Tuesday.According to the IT firm Capgemini, three in five Life Sciences organisations are currently developing a roadmap for integrating Generative AI, and over half are already piloting genAI for interactions with patients and healthcare providers (HCPs).

“Unlocking the power of healthcare data and leveraging the possibilities posed by breakthrough technologies, such as Generative AI, will be at the heart of this connected health revolution,” said Thorsten Rall, Global Life Sciences Industry Leader at Capgemini.

“They can accelerate drug development, enhance patient care, and have the potential to reshape what ‘product’ actually means for pharmaceuticals, especially medtech companies,” he added.

The report surveyed 420 industry executives from various biotechnology, pharmaceutical (biopharma), and medtech organisations exploring connected health initiatives with annual revenues exceeding $500 million.

The report also found that there has been a six-fold increase in biopharma organisations with market-ready connected products since 2021.

Oncology, immunology, and cardiology are primary focuses for most biopharma companies, with emerging areas such as mental health, diabetes, obesity, and dermatology also showing huge growth since 2021.

According to the report, biopharma organisations have made significant progress in leveraging AI, Machine Learning (ML) and Cloud in the last three years.

Biopharma organisations using AI for predictive analysis of real-time data from connected health products have almost doubled since 2021 from 24 per cent to 46 per cent.

As per the report, over two-fifths (42 per cent) also have a Cloud platform in place for data integration from different sources.

However, only a minority of Life Sciences organisations mentioned that they had an adequate supply of technical skills such as AR/VR and Generative AI, according to the report.  AGENCIES