India Economy Thread

CallSignMaverick · May 25, 2024

Hindalco raises FY25 capex target to ₹6,000 crore

Hindalco raises FY25 capex target to ₹6,000 crore

Earlier this year, Hindalco said it would spend ₹5,000-5,500 crore on capex in FY25. In FY24, it spent about ₹4,200 crore.

economictimes.indiatimes.com

Record AC Sales of 10,000 Units per Day in Ahmedabad Due to Extreme Heat Conditions | Ahmedabad News - Times of India

Air conditioner sales in Ahmedabad are skyrocketing with an average of 10,000 units sold per day, driven by the ongoing heatwave. Sales could surpass 6 lakh units for April and May, setting a new record. Installation delays are up to five days due to high demand, with 80% of purchases made...

timesofindia.indiatimes.com

Heatwave effect: From AC to refrigerator, sales of summer products peak

Heatwave in India: Consumers are flocking to purchase home appliances that bring respite from scorching heat as temperatures soar across the country.

www.businesstoday.in

India data center boom to drive 10 million sq ft realty demand by 2026
Read more at:

India data center boom to drive 10 million sq ft realty demand by 2026

Cloud Service Providers (CSPs), which furnish information technology infrastructure primarily for data storage and computing power via the Internet, have adjusted their strategies to accommodate AI-driven demand. These providers have also disclosed plans for increased investments to support...

economictimes.indiatimes.com

Jio Financial plans Rs 36,000 cr ($4.5 billion) deal with Reliance Retail

Jio Financial plans Rs 36,000 cr deal with Reliance Retail

Jio Financial Services seeks shareholder approval for its unit to purchase telecom equipment worth Rs 36,000 crore from Reliance Retail. The move signals JFS's entry into the device leasing business. The deal involves Jio Leasing Services buying routers and cell phones for rental to Reliance Jio...

economictimes.indiatimes.com

Ready to build high-capacity nuclear power units in India: Russia

Ready to build high-capacity nuclear power units at new site in India: Russia

Russia and India are set to expand cooperation in atomic energy. There are plans to construct high-capacity nuclear power units at a new site in India. Department of Atomic Energy secretary Ajit Kumar Mohanty and Rosatom State Atomic Energy Corporation of Russia Director General Alexey Likhachev...

economictimes.indiatimes.com

JLR plans to start making flagship Range Rover model in India

The local assembly will translate into a 18-22% price reduction, Amba said. The Range Rover will drop to Rs 2.6 crore from Rs 3.3 crore while the Range Rover Sport will fall to Rs 1.4 crore from Rs 1.8 crore. India levies a duty of 15% on completely knocked down kits and more than 100% on...

economictimes.indiatimes.com

Tata Power seeks up to $1 billion loan for clean energy projects

The unit of Tata Group, one of Indias largest conglomerates, is in talks with lenders including State Bank of India, IndusInd Bank, Axis Bank and ICICI Bank for the loan, people familiar with the matter said, asking not to be identified as the information is private.

economictimes.indiatimes.com

EFC expands co-working portfolio; adds 360,000 sq ft in Noida and Pune

Integrated office infrastructure and design company EFC (I) Limited is expanding its co-working portfolio by adding 3.6 lakh sqft in Pune and Noida, aiming to add 10,000 seats by H1FY2025. With a presence in seven states and 35 centres, the company has seen a 120% capacity increase, focusing on...

economictimes.indiatimes.com

Tata Power seeks up to $1 billion loan for clean energy projects

The unit of Tata Group, one of Indias largest conglomerates, is in talks with lenders including State Bank of India, IndusInd Bank, Axis Bank and ICICI Bank for the loan, people familiar with the matter said, asking not to be identified as the information is private.

economictimes.indiatimes.com

Biocon to invest â¹2,200 crore in capex in the next 2 years

Biocon Limited's Q4 FY24 results show a 56.7% profit decline, CEO discusses performance and future roadmaps with BusinessLine.

www.thehindubusinessline.com

JK Tyre lines up Rs 1,400crore expansion capex - Times of India

India Business News: CHENNAI: Tyre major JK Tyre has lined up fresh capex of Rs 1,400 crore to expand capacity across its range.

timesofindia.indiatimes.com

Max Healthcare plans capex of Rs 1500 cr for FY25 - Times of India

India Business News: NEW DELHI: Max Healthcare Institute, one of the largest healthcare services companies, has earmarked a capex of over Rs 1500 crore during FY25, which .

timesofindia.indiatimes.com

Wheels India Ltd Announces Rs.200 Crore Capex for FY2024

Reports 64.3% Rise in Q4 Net Profits

www.constructionworld.in

Pricol continues its capex cycle with over â¹200 cr planned for FY25

Pricol Ltd to invest â¹200-220 crore in FY25 for expanding production capacities, focusing on digital instrument clusters and PCB manufacturing.

www.thehindubusinessline.com

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CallSignMaverick · May 26, 2024

DDG-80 · May 29, 2024

India big gainer from China plus one strategy! 'Goods exports to almost double to $835 billion'; here’s why

India and Vietnam are emerging as key beneficiaries of the “China plus one” strategy, a global initiative aimed at diversifying supply chains away from heavy reliance on China. According to a recent report by Nomura, this strategic shift is expected to open up new avenues for growth across Asian economies.

Nomura’s analysis suggests a significant uptick in India’s goods export potential, projecting a surge to $835 billion by 2030, a substantial leap from the $431 billion recorded in 2023. Central to this growth trajectory is India’s robust domestic market, which is proving to be a magnet for companies seeking alternatives to China for their manufacturing and supply chain operations.

Industries spanning electronics, apparel, toys, automobiles, capital goods, and semiconductor manufacturing are increasingly eyeing India as a favourable investment destination, drawn by the prospect of tapping into its vast consumer base.

Of these sectors, electronics is anticipated to experience the most rapid expansion, with exports poised to register a staggering compound annual growth rate of 24 per cent, reaching $83 billion by 2030. Similarly, machinery exports are forecasted to more than double, climbing from $28 billion in 2023 to $61 billion by the end of the decade.

Nomura underscores that despite relatively modest production-linked incentive (PLI) disbursements, India remains primed for deeper integration into global value chains. The country’s appeal lies in a combination of factors, including its expansive market size, rapid economic growth, competitive labour costs, and stable political and economic landscape. These factors collectively position India as an attractive destination for manufacturing consumer goods, both for domestic consumption and export purposes.

Companies and their Chinese manufacturing partners who have moved away from China, and into Vietnam and India have seen some impressive numbers. More and more EU & US-based companies therefore want their manufacturing partners to move to India and Vietnam. Just last week, reports surfaced according to which, US-based EV maker Tesla has asked its partners to focus on India and Vietnam.

Moreover, Nomura predicts that India’s share of global trade will see a notable uptick, rising to 2.8 per cent by 2030, driven by the growing competitiveness of its production capabilities. This anticipated surge in trade is expected to contribute to an overall improvement in India’s trade balance and current account, potentially leading to currency appreciation.

Nomura’s research also highlights a growing interest among investors in both India and Vietnam. US-based companies, particularly in the electronics sector, are among the prominent players investing in India, while Japan and Korea are also making substantial investments across various sectors such as auto, consumer durables, and electronics. These investments are driven by the desire to leverage India’s expanding domestic market and utilize the country as a strategic manufacturing hub.

Looking ahead, the strengthening of India’s manufacturing sector and its increasing share in global exports are poised to bolster corporate sector growth, sustaining robust earnings growth rates of 12-17 per cent over the medium term.

India's exports to surge past $835 bn by 2030 from $431 bn in 2023, thanks to ‘China Plus One’ policy

Companies and their Chinese manufacturing partners who have moved away from China, and into Vietnam and India have seen some impressive numbers. More and more EU & US-based companies, Tesla, for example, want their manufacturing partners to move as well

www.firstpost.com

r3alist · May 29, 2024

Can a Chinese poster explain likely iPhone sales in china?

If the Chinese market moves away that would hurt apple, there are record sales however in china

Samlee · May 29, 2024

Most Components Are Still Made In Cina.China Has Complete Value Chains Within It's Borders.It Has A Manufacturing Ecosystem Developed Over 4 Decades.India Does Not Have That.All It Will Take Is For Xi Is To Impose Export Duties On Those Components Or Even Ban Them Completely

Joe Shearer · May 29, 2024

Samlee said:
Most Components Are Still Made In Cina.China Has Complete Value Chains Within It's Borders.It Has A Manufacturing Ecosystem Developed Over 4 Decades.India Does Not Have That.All It Will Take Is For Xi Is To Impose Export Duties On Those Components Or Even Ban Them Completely

These are of course unique and cannot be replicated. Given the cultural, spiritual and moral superiority of one nation over all others in the world, their success in replicating western systems built over centuries in only four decades can never be repeated by others starting from a higher level and building identical supply chains in half the time.

JaneBhiDoYaaron · May 29, 2024

Samlee said:
Most Components Are Still Made In Cina.China Has Complete Value Chains Within It's Borders.It Has A Manufacturing Ecosystem Developed Over 4 Decades.India Does Not Have That.All It Will Take Is For Xi Is To Impose Export Duties On Those Components Or Even Ban Them Completely

Even for iphone in assembled many of the components are from outside china such as South Korea, Taiwan, Japan ….

DDG-80 · May 29, 2024

huanghong · May 29, 2024

r3alist said:
Can a Chinese poster explain likely iPhone sales in china?

If the Chinese market moves away that would hurt apple, there are record sales however in china

However, Apple’s sales in China are actually falling
Apple’s struggles were most worrisome in China, the world’s second-largest smartphone market, where sales fell 8 percent. The iPhone’s popularity there has waned since Huawei, which the Trump administration restricted from working with U.S. technology firms, introduced a new smartphone with 5G abilities last year. Last quarter, Apple’s share of smartphones sold in China fell 4 percent, according to Counterpoint, a technology research firm.

Apple Reports Decline in Sales and Profit Amid iPhone Struggles in China

The company continues to lean on customers’ appetite for apps and services, as demand for its devices weakens.

www.nytimes.com

DDG-80 · May 29, 2024

JaneBhiDoYaaron said:
Even for iphone in assembled many of the components are from outside china such as South Korea, Taiwan, Japan ….

The most expensive parts of a phone such as Processor, memory chip, camera lens and touchscreen are all made in either Japan, SK or Taiwan. Some other critical parts such as gyroscope come from Germany and other countries. If I remember correctly, even for China the IPhone indigenization percentage by value is around 20-25%. Until 2019, it was actually less than 10%. Only recently did China start manufacturing batteries, speakers etc for the IPhone which increased their percentage.

I hope at least in the next few years we can develop expertise in medium value components such as batteries and speakers.Now even though the percentage of Chinese components has increased. You can see, for most of the countries it is around 20%.

What is the threshold of value addition, for a country to be considered an iPhone manufacturers. The supplers are distributed accross the global & none of them have a majority stake (50% value addition) in iphone manufacturing.

Most ICs like DRAM, Flash, Processors, MEMS, camera module and even display which is semiconductor and battery cells are made in Taiwan, US, Japan or Korea.
These items are the crown jewels of those countries, and also make a large portion of the Bill-of-Materials cost of a phone and super spy like Chinese also has troubles stealing said tech, so at best they are limited to low end production of such items, like their ICs will use a larger technology node( SMIC of China theoretically can do 14nm chip production, their production in reality is 20nm and below, meanwhile you have TSMC at 5nm ), their displays will be LCD instead of OLED or MicroLED or whatever hot shit there is now.

The only state of the art Chinese production of this is of NAND Flash by Samsung in Xian and SK Hynix somewhere else in China.

What parts they add into their phones depends on what $$$ it's going to sell for, high-end phones with cutting edge specs will have higher percentage of imported components which are indeed state of the art, lower end phones will have greater chinese contribution, like the screen may come from BOE displays which is a chinese vendor for example.

But even with low end phones they cannot fully supplant the Ebul Phoreners and go full Atmanirbhar Cheen, market forces and customer preferences discourage it, also the capabilities of their companies.

r3alist · May 29, 2024

huanghong said:
However, Apple’s sales in China are actually falling
Apple’s struggles were most worrisome in China, the world’s second-largest smartphone market, where sales fell 8 percent. The iPhone’s popularity there has waned since Huawei, which the Trump administration restricted from working with U.S. technology firms, introduced a new smartphone with 5G abilities last year. Last quarter, Apple’s share of smartphones sold in China fell 4 percent, according to Counterpoint, a technology research firm.

Apple Reports Decline in Sales and Profit Amid iPhone Struggles in China

The company continues to lean on customers’ appetite for apps and services, as demand for its devices weakens.

www.nytimes.com

This will be interesting to see, can the Indian market replace lost Chinese sales?

huanghong · May 29, 2024

DDG-80 said:
View attachment 44066
The most expensive parts of a phone such as Processor, memory chip, camera lens and touchscreen are all made in either Japan, SK or Taiwan. Some other critical parts such as gyroscope come from Germany and other countries. If I remember correctly, even for China the IPhone indigenization percentage by value is around 20-25%. Until 2019, it was actually less than 10%. Only recently did China start manufacturing batteries, speakers etc for the IPhone which increased their percentage.

I hope at least in the next few years we can develop expertise in medium value components such as batteries and speakers.Now even though the percentage of Chinese components has increased. You can see, for most of the countries it is around 20%.

What is the threshold of value addition, for a country to be considered an iPhone manufacturers. The supplers are distributed accross the global & none of them have a majority stake (50% value addition) in iphone manufacturing.

Most ICs like DRAM, Flash, Processors, MEMS, camera module and even display which is semiconductor and battery cells are made in Taiwan, US, Japan or Korea.
These items are the crown jewels of those countries, and also make a large portion of the Bill-of-Materials cost of a phone and super spy like Chinese also has troubles stealing said tech, so at best they are limited to low end production of such items, like their ICs will use a larger technology node( SMIC of China theoretically can do 14nm chip production, their production in reality is 20nm and below, meanwhile you have TSMC at 5nm ), their displays will be LCD instead of OLED or MicroLED or whatever hot shit there is now.

The only state of the art Chinese production of this is of NAND Flash by Samsung in Xian and SK Hynix somewhere else in China.

What parts they add into their phones depends on what $$$ it's going to sell for, high-end phones with cutting edge specs will have higher percentage of imported components which are indeed state of the art, lower end phones will have greater chinese contribution, like the screen may come from BOE displays which is a chinese vendor for example.

But even with low end phones they cannot fully supplant the Ebul Phoreners and go full Atmanirbhar Cheen, market forces and customer preferences discourage it, also the capabilities of their companies.

Too many wrong data
According to Bloomberg, TechInsights' disassembly confirmed
Huawei's new phone PURA70
The chip is Kirin 9010 7nm process from SMIC
NAND storage from Yangtze Memory Technologies Co
6.6-inch OLED straight screen from BOE, Visionox

Huawei Relies on China’s YMTC for Memory Chip in Latest Phone

Huawei Technologies Co.’s latest flagship smartphone has switched to a domestic supplier for a major component in another step toward building a wholly made-in-China device.

www.bloomberg.com

Beijingwalker · May 29, 2024

Apple moves closer to China despite supply chain shifts

Japan, Taiwan and U.S. supplier numbers dip as iPhone maker expands in Southeast Asia
CHENG TING-FANG and LAULY LI, Nikkei Asia tech correspondentsAPRIL 26, 2024 04:00 JST
APRIL 26, 2024 04:00 JST

TAIPEI -- Apple is deepening its ties with China even as it further expands production in Southeast Asia and India, highlighting the balancing act the iPhone maker is striking between politics and business.

Apple increased its China-headquartered suppliers and Chinese manufacturing sites in 2023 while using fewer suppliers from Taiwan, the U.S., Japan and South Korea, a Nikkei Asia analysis of Apple's latest official list of suppliers shows.