Editorial     

‘Make in India’ or ‘Make in China’ & Dump in India?

What price ‘Make in India’? The much touted slogan of Prime Minister Narendra Modi, together with his vow to ban imports from China, has clearly not stemmed the Dragon’s economic invasion of Indian markets. What is more, China has left behind the US, the UAE and the UK during fiscal 2023-24 and has emerged as our largest trading partner with two-way trade figures of $ 118.4 billion.

For the record, during 2021-22 and 2022-23 the US was India’s biggest trade partner, while before that it was the UK. During fiscal 2024, imports from China have surged to cross $ 100 billion and reach $ 101.75 billion, indicating a 44.7 per cent spurt over the earlier $ 70.32 billion.

Chinese economists have ‘hailed’ their country’s bumper exports to India as contributing immensely in reviving the sagging economy of the Dragon. During the last ten years, despite the Indian Prime Minister’s repeated pronouncements on banning the inflow of Chinese goods, our giant neighbour’s share of India’s imports have gone from 21 per cent in 2012-13 to 30 per cent in fiscal 2023-24.

According to renowned economic think tank Global Trade Research Initiative (GTRI), from fiscal 2019 to fiscal 2024, India’s trade dynamics with its top 15 trading partners underwent significant transformations, impacting both exports and imports along with the status of trade surplus or deficit across various sectors. Surprisingly, much against the repeated utterances by the Indian Prime Minister to ban imports from China, the Dragon has now surpassed our three previous leading trading partners — the USA, the UAE and the UK.

According to GTRI, goods imported from China have risen 2.3 times faster than India’s total global imports over a period of 15 years. What is more, the think tank adds, China is the top supplier to India in eight major industrial sectors, including machinery, chemicals, pharmaceuticals, and textiles, belying the general perception that Chinese imports are high only in the electronics sector. Indian businessmen are lamenting that large-scale imports from China have adversely affected their business and balance sheets.

India’s total merchandise imports stood at $ 677.2 billion in 2023-24, of which over 15 per cent was sourced from China. Of this, $ 100 billion of imports was in major industrial product categories. Does this mean that the Prime Minister’s vow to ban imports from China was an empty one?

The GTRI report also highlights the significant reliance on imports from China across various sectors. Citing trends from the first 10 months of fiscal 2023-24, it notes that almost 42 per cent of India’s textiles and clothing imports, and 40 per cent of its machinery imports in this period, came from China. For the same period, the corresponding number was 38.4 per cent for electronics, telecom and electrical products.

Naturally, the question arises of whether the much-touted ‘Make in India’ policy has made any dent in the country’s dependency on imports from China. Clearly, the time has come to review the country’s import strategies and take imaginative and effective steps to boost indigenous production. The strategic implications of the growing dependency on China are profound, adversely affecting not only the economy but also our national security.

Ergo, the need of the hour is not just patriotic slogans but effective measures to bolster industrial output across the board as well as diversify imports in order to reduce our overdependence on a giant neighbour like China. The government should make it clear whether our policy is ‘Make in India’ or ‘Make in China (and Dump in India)!

written by

Deven Malkan

Cover story     

Gold Heads To Cross Rs 1 Lakh-Mark

India’sfascination with gold is probably as old as the country’s hoary history. The precious yellow metal remains the first choice of investment for millions of Indians of all socio-economic backgrounds. Apart from its jewellery- and bullion-related qualities, its indisputable advantage over other investment avenues lies in its historic and continuing appreciation over time.

Corporate Grapevine         

Adani Port shares ride Norges exit

Despite the news of Norway’s central bank Norges Bank’s exit, the stock of AP&SEZ remains stable. The markets ignored the news as the stock remained positive and closed 0.31% higher at Rs 1,342. In fact, an ‘Overweight’ rating by Morgan Stanley, which got released on the same day, guided for a target price of Rs 1,517.

Avanti new gen, ‘tata’ to old gen

Several new scions are joining the family business as the older generation takes a back seat. Priya Agarwal is taking the driver’s seat in the Vedanta group while Ananya Birla is leaving her music to focus on the family business at the Aditya Birla group.

Hindujas’ Rel Cap bid come undone?

The Hinduja group had a meeting with lenders, seeking more time beyond the deadline of May 27 for making a payment worth Rs 9,661 crore for the takeover of Reliance Capital. The Hindujas want to clear all legal hurdles before paying to acquire the bankrupt firm which was earlier owned by Anil Ambani but failed to pay its debt of Rs 25,000 crore.

Aviation bonanza for GMR, Adani

The GMR and Adani groups are in for a bonanza as ICRA projects the overall air passenger traffic to witness a healthy growth of around 8-11 per cent to around 407- 418 million in FY2025, supported by a strong pick-up in both leisure and business travel, improved connectivity to newer destinations in the domestic segment and a continued uptick in international travel.

Corporate Development     

Hikes share in tech-smart Ecozen

Coromandel International Limited (CIL,) India’s leading listed agri-solutions company, has announced increasing its investment in Ecozen, a pioneering climate-smart technology solutions provider. The Rs 24-crore investment was made through its wholly owned subsidiary and corporate venture capital arm, Dare Ventures Limited. With this, Coromandel has increased its shareholding in Ecozen to 5.54%, an increase of 3.13%.

Captains Speak         

Ambitious expansion plans

Delhi-based Anant Raj Ltd, a leading player in the segment of real estate development which has diversified into the field of data centres, is in expansion mode and plans to launch ambitious real estate projects as well as expand its data centre capacity. As far as the real estate segment is concerned, the company has planned to develop a luxury housing project which will have a saleable area spanning over one million sq ft, including a 40,000 sq ft clubhouse.

New AI centre in Paris in June

Tata Consultancy Services (TCS) is going to create a global Artificial Intelligence (AI) Centre of Excellence in Paris. Providing this information while addressing a conference call organised to discuss the March 2024 quarter performance, K Krithivasan, CEO and Managing Director of TCS, added that the new centre will be based in the upcoming TCS Pace Port in the La Defence area of Paris, and will be inaugurated in June 2024. This will be the 7th such facility in TCS' global Pace network following Amsterdam, London, New York, Pittsburgh, Toronto and Tokyo.

Launches Premier Tyres

With a view to improving its marketshare in the premium tyre segment, CEAT Ltd has launched a range of premium steel radial tyres which will be sold directly to consumers. Revealing this at a conference call organized to discuss the may 2024 quarter performance, Arnab Banerjee, CEO and MD, added that the steel radial tyres that were earlier only manufactured and sold to Original Equipment Manufacturers (OEMs) will now be available for the aftermarket.

Portfolio Choice         

Five-fold sales surge in 12 years

The Maharatna, Oil and Natural Gas Corporation, is India’s largest crude oil and natural gas company, contributing around 70 per cent of the country’s domestic production. Crude oil is used by downstream companies like IOC, BPCL, HPCL and MRPL to produce petroleum products like petrol, diesel, kerosene, naphtha and cooking gas LPG.

Riding India’s infra bandwagon

Bangalore-based Yuken India was promoted in 1976 in technical and financial collaboration with Yuken Kogyo Company Ltd, Japan (YKC) which today holds a majority 56.16 per cent equity stake in the Indian company. The Japanese company is an undisputed leader in oil hydraulic equipment.

Pole player in automotive castings

Nelcast is one of the largest players in the Indian ductile iron/grey castings market and manufactures several complex castings, including axle housings, clutch housings and bogie suspension brackets. It caters to the M&HCV and tractor segments of the automobile industry, both in the Indian and export markets.

Management     

Crucial importance of SRC

A Stakeholders Relationship Committee (SRC) is crucial for an organization’s success, and can contribute to the overall success of the organization. An SRC alone can actively engage with stakeholders, advocate for their rights and concerns, and facilitate constructive dialogue between promoters and stakeholders, thereby promoting transparency and accountability

Corporate Feature         

Receives In-principle Approval for Preferential Issue of Warrants, In Advance Discussions for Potential Acquisition

Fineotex Chemical Ltd. (BSE: 533333, NSE: FCL), a leading specialty chemical producer, has announced that it has received an in-principle approval from BSE & NSE for preferential issue of warrants. Earlier the board of directors approved raising of funds through issue and allotment of 42,00,600 convertible share warrants at an is price of Rs. 346 per warrant, aggregating up to maximum amount of Rs. 146 crore.

Excellent show for FY 2024: Sales at highest ever level

JTL Industries Limited is a fast-growing dynamic steel tube manufacturing company that specializes in producing black steel pipes, pre-galvanized and galvanized steel pipes, large-diameter steel tubes and pipes, and hollow structures. The company in its Board Meeting held on 10th May 2024 announced financial result for Q4 and FY24.

Strengthens global footprint with Strengthens global footprint with expansion into South American market

Rushil Decor (BSE: 533470, NSE: RUSHIL), a prominent name in the manufacturing of ecofriendly MDF, laminates, and plywood, is thrilled to announce its strategic expansion into South America. With exports already reaching over 50 countries, Rushil Decor is set to penetrate one of the largest markets for MDF globally. On the eve of Interzum Bogota, Mr. Rushil Thakkar, Executive Director Rushil Decor expressed hope and confidence about growing with the multi- billion-dollar global wood panel market.

Subsidiary secures new client win in European region

ITCube Solutions Pvt. Ltd. (subsidiary of One Point One Solutions Limited), a prominent player in the technology solutions provider space has secured a new client-win in European region a renowned global player specialising in providing solutions against brand threats utilizing advanced AI-driven tools to combat online piracy, counterfeiting, and intellectual property infringement.

Reports solid Q4FY24 earnings, with record 37.62% revenue growth and best-ever operational performance

One Point One Solutions Ltd. (NSE: ONEPOINT) (1Point1), the country’s leading Business Process Management Solutions company, Announced Q4 FY24 results today for the period ending March 31st, 2024. For the quarter ended 31 March 2024, the revenues were reported at Rs. 53.29 crores, a growth of 37.62% YoY. EBITDA rose 33.19% YoY, from Rs. 11.66 crores (Q4FY23), to Rs. 15.53 crores (Q4FY24). PAT recorded a growth of 125.76% YoY, from Rs. 2.95 crores (Q4FY23) to Rs. 6.66 crores (Q4FY24).

Attractive rights issue opens on May 21, 2024

Shareholders of Anjooni Biotech Limited have an opportunity to buy into a rights issue offer. The company is one of the leading players in the compounded pure vegetarian animal feed and supplements and its portfolio offers a wide range of quality cattle feed, cattle feed chips, camel feed, cotton oil cake, mustard oil cake, etc. to cover the entire lifecycle of animals. On May 9, Ajooni Biotech's stock price hovered around 6.65. The CMP is 5.07 per cent lower than its previous closing price of *6.90.

Six strategies for growth: Mapping the journey to the next orbit

Cellecor Gadgets Limited, (NSE EMERGE: CELLECOR), a prominent figure in the affordable electronics sector, is experiencing significant growth as it broadens its reach, distribution channels, and product offerings. This expansion has led to Cellecor surpassing its past sales figures, highlighting the success of its marketing tactics. The company has announced impressive financial results for the fiscal year 2023-2024 and has also unveiled a detailed an outlining growth strategies for 2024-2025.

Successfully concludes the payment for acquisition of EMC Ltd.

Salasar Techno Engineering Ltd (STEL) (BSE: 540642, NSE: SALASAR), is a one stop engineering and infrastructure solution provider. The Company is engaged in providing turnkey EPC services for Railway and Power sectors and is also engaged in designing and manufacturing of telecom towers, monopoles and other heavy steel structures. In continuation to the company’s press release dated 16th March,2024, Salasar has effectively completed the payment of balance amount of Rs. 1,680 Mn for acquisition of EMC Ltd.

Robust Earnings show for FY24: PAT Jumps 115% YoY

Sarveshwar Foods Ltd. (BSE: 543688, NSE: SARVESHWAR), engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets has announced its audited financial results for the quarter and full year ended March 31st, 2024 in the board meeting held on 16th May, 2024.

Gratifying show for FY 2024: Revenues grow 27% YoY

Servotech Power Systems Ltd, (NSE: SERVOTECH), a prominent manufacturer of cutting-edge solar products and electric vehicle (EV) chargers, unveiled its financial results for the quarter and year ended March 31, 2024 during the board of directors meeting held on 9th May 2024.

Incorporates Subsidiary for Insurance Broking

Standard Capital Markets Ltd., a leading player in the financial services segment, has incorporated a subsidiary to act as a direct broker under the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018. Recently, the company’s board approved the declaration of special dividend at the rate of 1%.

Robust Earnings for Q4FY24 PAT shoots up 79% YoY

Apollo Micro Systems Ltd. (BSE: 540879, NSE: APOLLO), a pioneer in design, development and assembly of custom-built electronics and electro-mechanical solutions, has reported its earnings for quarter and year ended 31 March 2024. The company achieved significant financial growth in FY24, driven primarily by robust order execution.

May 31, 2024 - Second Issue

Industry Review

VOL XV - 21
May 16-31, 2024

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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