Foxconn, Fame II among major developments to look out for today

The Federal highlights some of the major developments to look out for in the domestic business sector on Tuesday (March 7):

1. The Foxconn controversy:

Electronics contract manufacturer Foxconn has said it will set up a plant in Telangana while sending a letter to Karnataka chief minister SR Bommai assuring him that it is committed to setting up a project in the state. The assurance comes a day after Foxconn said it had no definitive plans to set up a manufacturing plant in Karnataka. The assurance to Bommai does not come with any commitment to creating jobs or investments in the state. The next few days could see more developments regarding the company’s plans in south India.

Also read: Committed to set up manufacturing facility in Telangana: Foxconn

2. FAME II incentive may vanish next fiscal:

After several rounds of meetings, the Government is expected to stop the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) incentive to electric vehicle manufacturers. Instead, the Government may allow incentives via the Production-Linked Incentive Scheme. The Government believes several EV makers need to adhere to localization norms. Once these incentives are withdrawn, electric vehicles are expected to become costlier to own, severely impacting the fledgling industry.

3. More layoffs:

Indian IT services will have to be on their guard, with more layoffs in multinational technology companies expected in the next few weeks. A Bloomberg report says Meta Platforms Inc., the owner of Facebook and Instagram, is expected to cut thousands of more jobs later this week. This is on top of the layoff of 11,000 employees. Indian IT companies which count some of the top tech companies as their clients may find it tough to retain the contracts as businesses in the West fear they may be unable to meet their financial targets this year.

4. Adani Group roadshows:

The apple-to-airports conglomerate Adani Group will hold roadshows in London, Dubai, and the US this week to assure investors about the financial viability of the group companies. The Adani Group has around $2 billion worth of foreign-currency bonds, which will come up for repayment in 2024.

Also read: Adani Group to investors: $2 bn bonds due for repayment in 2024

Surveys:

1. Woman Power:

Over 10,000 women entrepreneurs have dispensed over ₹900 crores of financial services in the last financial year. Interestingly, cash which dominated the payment space among women in FY 2021-22, still holds strong, with around 48 per cent of women saying they preferred dealing in cash. Aadhaar-led transactions and UPI QR, too, have gained momentum. Cards continue to have a minimal presence in this segment, according to a survey – PayNearby Women Financial Index (PWFI) – an annual Pan-India report showcasing financial consumption by women at retail stores, released by PayNearby in association with the Reserve Bank Innovation Hub (RBIH). Approximately 78 per cent of women cited cash withdrawal as the primary reason for visiting a retail store for financial transactions. ₹1000-2500 was the most preferred range of withdrawal for women across the country.

2. Auto parts:

Auto components industry to grow 10-15% in FY24: ACMA (Automobile Component Manufacturers Association).

3. Retail vehicle sales:

Retail vehicle sales rose 16 per cent in February; festivals seen driving March demand: FADA (Federation of Automobile Dealers Association).

4. Gold prices:

Gold prices declined to ₹56,089/10 gm, and the price of silver advanced to ₹64,266/kg: Indian Bullion & Jewellers’ Association (IBJA).

Developments:

1. PM Modi to address post-budget webinar on financial services.

2. OnePlus Ace 2V debut.

3. ZTE to launch Nubia Z50 Ultra with under-display camera.

4. Natco Pharma to consider share buyback.