Newsmakers
ECONOMY & POLICY

Newsmakers

Power Aid
Parminder Chopra, Chairman and Managing Director, Power Finance Corporation, helms the company that approved the Rs.150 billion loan to the Shapoorji Pallonji (SP) Group which will help the Mistry family repay debts and expand the real estate business, using Tata Sons shares as collateral. This loan is seen as a significant step in addressing the Mistry family's $3 billion debt, potentially allowing their companies to reinvest profits for growth instead of servicing debt. The loan, backed by cash flows from SP Group's real estate business and the Mistry family's shares in Tata Sons, will assist the Mistry family, who hold an 18.37 percent stake in Tata Sons in repaying personal debts and fulfilling commitments to creditors. This approval comes as the Mistry family's operating companies like Shapoorji Pallonji and Afcons are in an expansion mode, including a proposed public issue for Afcons. The loan is expected to have a four-year term, with provisions to cover interest costs for the first two years. PFC reported its highest annual consolidated profit of Rs.211.79 billion for 2023-24.

Targeting $1.8 Billion Revenue
Anil Kumar Yendluri, Managing Director, Vishwa Samudra Engineering, heads the company that is targeting revenue of $1.8 billion by 2027. As India continues on its path towards becoming a developed nation by 2047, the government has allocated 3.3 per cent of GDP to the infrastructure sector in fiscal year 2024 with a particular focus on the transport and logistics segments. Leveraging the opportunity in the sector, the group is poised to ride on the wave of huge infrastructure development in India. Out of its four on-going hybrid annuity model (HAM) projects, the company will be responsible for operating the Varanasi Urban Ropeway project, which is the world's second urban ropeway and India's first, after construction has been completed. The group’s extensive expertise in construction and operations of over 6,000 acres in Krishnapatnam Port came in use for development of Mulapeta Port, which has set two Limca Book of National Records. Also the Mulapeta Port, India's second-largest private port outperformed the Chennai Port, which is the most successful port on the coast.

Seeking Southern Synergies
Ajay Kapur, CEO and Whole Time Director, Ambuja Cements, heads the company that will acquire Hyderabad-based Penna Cement Industries (PCIL) at an enterprise value of Rs.104.22 billion, which is the group’s third acquisition since it entered the cement business less than two years ago in September 2022. By acquiring PCIL, Ambuja is poised to expand its market presence in South India and reinforce its position as a pan-Indian leader in the cement industry. The acquisition will improve Adani group’s market share in India's cement business by 2 per cent to 16 per cent. In its investor presentation, the company had said that it has aimed for a 20 per cent share in the Indian cement market by 2028. Ambuja Cements expects to leverage Penna Cement’s location to access the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route. PCIL’s existing dealers will move to the Adani Cement network to bring in formidable synergy.

Power Aid Parminder Chopra, Chairman and Managing Director, Power Finance Corporation, helms the company that approved the Rs.150 billion loan to the Shapoorji Pallonji (SP) Group which will help the Mistry family repay debts and expand the real estate business, using Tata Sons shares as collateral. This loan is seen as a significant step in addressing the Mistry family's $3 billion debt, potentially allowing their companies to reinvest profits for growth instead of servicing debt. The loan, backed by cash flows from SP Group's real estate business and the Mistry family's shares in Tata Sons, will assist the Mistry family, who hold an 18.37 percent stake in Tata Sons in repaying personal debts and fulfilling commitments to creditors. This approval comes as the Mistry family's operating companies like Shapoorji Pallonji and Afcons are in an expansion mode, including a proposed public issue for Afcons. The loan is expected to have a four-year term, with provisions to cover interest costs for the first two years. PFC reported its highest annual consolidated profit of Rs.211.79 billion for 2023-24. Targeting $1.8 Billion Revenue Anil Kumar Yendluri, Managing Director, Vishwa Samudra Engineering, heads the company that is targeting revenue of $1.8 billion by 2027. As India continues on its path towards becoming a developed nation by 2047, the government has allocated 3.3 per cent of GDP to the infrastructure sector in fiscal year 2024 with a particular focus on the transport and logistics segments. Leveraging the opportunity in the sector, the group is poised to ride on the wave of huge infrastructure development in India. Out of its four on-going hybrid annuity model (HAM) projects, the company will be responsible for operating the Varanasi Urban Ropeway project, which is the world's second urban ropeway and India's first, after construction has been completed. The group’s extensive expertise in construction and operations of over 6,000 acres in Krishnapatnam Port came in use for development of Mulapeta Port, which has set two Limca Book of National Records. Also the Mulapeta Port, India's second-largest private port outperformed the Chennai Port, which is the most successful port on the coast. Seeking Southern Synergies Ajay Kapur, CEO and Whole Time Director, Ambuja Cements, heads the company that will acquire Hyderabad-based Penna Cement Industries (PCIL) at an enterprise value of Rs.104.22 billion, which is the group’s third acquisition since it entered the cement business less than two years ago in September 2022. By acquiring PCIL, Ambuja is poised to expand its market presence in South India and reinforce its position as a pan-Indian leader in the cement industry. The acquisition will improve Adani group’s market share in India's cement business by 2 per cent to 16 per cent. In its investor presentation, the company had said that it has aimed for a 20 per cent share in the Indian cement market by 2028. Ambuja Cements expects to leverage Penna Cement’s location to access the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route. PCIL’s existing dealers will move to the Adani Cement network to bring in formidable synergy.

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Equipment

TAFE Motors, DEUTZ tie-up to grow internal combustion engine biz

TAFE Motors and Tractors, a subsidiary of TAFE, one of the world's top tractor manufacturers, has entered into a strategic partnership with DEUTZ AG, a leading German manufacturer of internal combustion engines. Under this agreement, TAFE Motors will produce up to 30,000 DEUTZ engines annually in the 50-75 hp and 75-100 hp ranges at its manufacturing facility in Alwar, Rajasthan.This collaboration aims to cater to growing demands in the Indian market and fulfill DEUTZ's requirements. TAFE Motors 'Alwar facility, known for producing diesel engines and gensets ranging from 5 to 125 kVA under bra..

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Infrastructure Urban

Ashok Leyland Ventures into Vehicle Scrappage

Ashok Leyland, a leading truck and bus manufacturer, is set to launch its first-ever vehicle scrappage facility under a franchise model. The company has finalized an agreement with a Registered Vehicle Scrapping Facility (RVSF), placing it in a strategic position to advance its circular economy goals and reduce environmental impact, as highlighted in its FY24 annual report. In addition to this milestone, Ashok Leyland is developing a digital platform named Re.AL, aimed at facilitating the resale of used vehicles in compliance with the government-mandated vehicle scrappage policy. This initiati..

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Infrastructure Energy

IEX Sees Significant Surge in Electricity Volumes in June 2024

The Indian Energy Exchange (IEX) reported a substantial 24.7 percent increase in electricity volumes for June 2024, with total volumes reaching 10,185 million units (MU). Including certificates, the monthly volume rose to 10,677 MU, marking a 19.4 percent year-on-year growth. In the first quarter of fiscal year 2025, IEX achieved a total electricity volume of 28,178 MU, reflecting a 19 percent increase from the previous year. When including certificates, the overall volume for the quarter reached 30,354 MU, showcasing a 20.8 percent growth compared to the first quarter of FY2024. Amidst hot ..

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