India, on its way to becoming the global electronics manufacturing hub, has doubled down on the local manufacturing of multiple products — mobile phones and their components, televisions, semiconductors and other devices — and the momentum is only going to grow in the next five years riding on the production-linked incentive (PLI) scheme, according to industry experts.

Reports claim that India’s electronic manufacturing is projected to reach $250 billion in the next five years — from $105 billion (around 3 per cent of the GDP) in FY23. The country aims to reach $300 billion in electronics manufacturing by 2030.In April, electronic goods exports were recorded at $2.65 billion compared to $2.10 billion during April last year, registering a growth of 25.80 per cent, according to the Invest India data.

As per the India Cellular and Electronics Association (ICEA) data, mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering an increase of a massive 2,000 per cent, driven by the PLI scheme.

Pankaj Mohindroo, Chairman of ICEA, said that the ‘continuity’ in policymaking is critical to the electronics manufacturing growth.

“We are geared up for the five-year sprint till 2030 on the way to transforming India into a global hub for electronics manufacturing and Viksit Bharat,” he added.

Apple has been a shining story of the country’s local manufacturing dream.

The iPhone maker exported iPhones worth more than Rs 16,500 crore in the first two months of the current financial year — accounting for more than 80 per cent of the country’s total production/assembly of iPhones.

Foxconn, the key Apple supplier, led total exports at about 65 per cent.

For FY 24, Apple saw a total iPhone production of around $14 billion. The company has increased iPhone production and one out of seven iPhones in the world is now being manufactured in the country, according to Prime Minister Narendra Modi.

The global chipmaking industry is also looking to establish operations in India, as the country emerges as a promising alternative to China amid tensions between Beijing and the West.

Meanwhile, the PLI schemes for 14 sectors are projected to see investments worth Rs 3 lakh crore – Rs 4 lakh crore in the next couple of years, likely generating 2,00,000 jobs in sectors like semiconductors, solar modules and pharmaceutical intermediaries.

According to Paritosh Prajapati, CEO of telecom gear maker GX Group, under PM Modi’s leadership, India has witnessed major reforms in the last couple of years and the continuation of the new government will set those reforms into further action.

“Manufacturing has been a major sector where the automobile, electronics, and pharmaceutical sectors have been growing extremely fast,” he noted. AGENCIES

Japan’s Takeda Pharmaceutical gave India’s Sun Pharmaceutical and Cipla (NS:CIPL) the rights to commercialise the gastrointestinal drug Vonoprazan in the country.

The drug, which is sold in the form of tablets under the brand name ‘Voltapraz’, blocks a key step in the production of stomach acid, Sun Pharma (NS:SUN) said on Friday.

Takeda has granted both drugmakers non-exclusive patent licensing rights for the drug.

Cipla and Sun Pharma will independently commercialise the drug in India under their respective brands.

Vonoprazan (oral tablets) is a novel potassium-competitive acid blocker (P-CAB), used for the treatment of Gastroesophageal Reflux Disease (GERD).

Vonoprazan is also used in treating disorders such as erosive oesophagitis, gastric ulcer, duodenal ulcer, peptic ulcer, gastro-oesophageal reflux, reflux oesophagitis and Helicobacter pylori eradication, according to a Cipla statement. AGENCIES

India’s jewellery retail sector has recorded rapid growth in the last five years surging from Rs 5,04, 400 crore in 2019 to Rs 6,40,000 crore in 2024 on the back of rising incomes in the economy and greater trust in the products due to hallmarking, according to a Motilal Oswal report.

Industry estimates cited by the brokerage project the jewellery market to achieve a 15-16 per cent compound annual growth rate (CAGR), reaching USD 145 billion by FY28.

Overall, the jewellery sector has seen an approximately 8 per cent revenue CAGR during FY19-24, reaching Rs 6,40,000 crore in market value, with the organised segment growing at 18-19 per cent.

The organised market is expected to grow at over 20 per cent CAGR, accounting for 42-43 per cent of the total market. “There are multiple drivers in the industry-leading to such rapid growth, driven by rising disposable income (higher per capita growth in double digits), an improving mix for regular wear (beyond weddings and investment-led), enhanced product offering (such as design and diamonds), trust-building through hallmarking, and a better buying experience at organized retail outlets,” the report states.

The top 10 states, which include Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh, account for 78 per cent of the organised retail network and contribute 68 per cent of the GDP. AGENCIES

 Indian CEOs are prioritising technology investment, including artificial intelligence (AI) but stay guarded amid data security challenges, according to a report.

Around 70 per cent of CEOs are channeling investments into technology, including AI, to catalyse growth and enhance productivity over the next 12 months, which is much higher than their global counterpart at 47 per cent, according to the ‘EY CEO Outlook Pulse Survey’.

However, fortifying data management and cybersecurity (56 per cent) and pursuing cost optimisation across business facets (50 per cent) also stand out as critical strategic imperatives in the near term.

Moreover, the acquisition of technology, new production capabilities, or innovative startups (44 per cent) emerges as the leading strategic driver for mergers and acquisitions (M&A) activities, said the report.

“Commitment to tech investments is not just a response to the present but a strategic leap towards the future. The survey underscores this momentum, revealing that a substantial majority of CEOs are actively aligning their organisations with an AI-centric blueprint for innovation and productivity,” said Mahesh Makhija, EY India Technology Consulting Leader.

Despite a majority of CEOs acknowledging the growing importance of sustainability compared to a year ago, there is a trend of sustainability slipping down the priority list for almost 16 per cent of CEOs, overshadowed by financial constraints and a shift in boardroom focus.

To bolster the sustainability agenda, corporate India advocates for technology incentives, including AI, as well as subsidies and tax breaks for green technology investments, coupled with governmental backing of sustainable infrastructure projects. AGENCIES

 The demand for Grade A warehousing stock will grow at a Compounded Annual Growth Rate (CAGR) of 12.5 per cent in India until FY30, a new report said on Friday.

According to the global professional services firm Alvarez & Marsal (A&M), India is witnessing an emergence of high-quality warehousing infrastructure, recognising warehouses as vital components in delivering exceptional customer experiences.

At present, up to 70 per cent of Grade A demand comes from Delhi-NCR, Mumbai, Bengaluru, Chennai and Pune.

“The evolution of warehousing in India from simple ‘godowns’ to sophisticated logistics hubs signals a new era of efficiency and resilience in supply chain management,” said Manish Saigal, A&M India Managing Director and Business Transformation Services Practice Co-Leader.

“Warehouses no longer serve as a mere storage facility, but rather as multifunctional logistic hubs integral to the seamless functioning of the supply chain and a superior choice for businesses aiming to optimise operations,” he added.

Sectors which are mainly driving the warehousing demand are retail, third-party logistics (3PL) and e-commerce.

As per the report, these sectors are projected to contribute about 80 per cent of the total demand for Grade A warehousing over the next five years.

Further, the report mentioned that with advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the growing needs of various industries, contributing to the overall growth and efficiency of India’s logistics ecosystem. AGENCIES

 In a bid to enhance the Electric Vehicle (EV) landscape and ecosystems in India and Europe, the India-European Union Trade and Technology Council (TTC) organised an event, featuring 12 high-impact startups in battery recycling technologies for EVs.

An independent committee of experts from each side shortlisted these 12 startups through a rigorous process based on scientific merit, market readiness, and prospects for cooperation.

“The initiative aligns with India and the EU’s commitment to promote a sustainable agenda, foster innovation, and forge stronger economic relations between India and the European Union,” said Office of Principal Scientific Advisor to the government of India in a statement.

The event offered the startups/SMEs an exclusive platform to pitch their innovative technologies.

Start-ups operating across the battery recycling value chain, covering collection to valuable mineral extraction participated in the matchmaking event.

“This matchmaking event brings together the best talents and technologies in the battery recycling space on both sides, giving them an exclusive platform for exchange, networking, and prospective investments,” said Professor Ajay Kumar Sood, Principal Scientific Adviser to the Central government.

 “We believe the exchange trip, awarded to three Indian and three EU start-ups, to visit EV battery recycling facilities on either side would be highly beneficial,” he added.

Marc Lemaitre, Director-General for Research and Innovation at the European Commission, emphasised the importance of an innovation-led EU-India partnership.

“This matchmaking event is such a step by bringing together innovative startups from both regions that want to scale up green solutions under the umbrella of the EU-India Trade and Technology Council,” said Lemaitre.

As a next step, three start-ups each from India and EU will be awarded the opportunity to visit the EU and India, respectively for a week-long market immersion experience.

The India-EU TTC was first announced by the European Commission President, Ursula von der Leyen, and Prime Minister Narendra Modi in April 2022,

It is a key forum to deepen the strategic partnership on trade and technology between the two partners. AGENCIES

 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