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- Bit by Bit 28th Sept || Apple to start production of Iphone 14 in Foxconn's TN facility || Razorpay's acquisition spree & More
Bit by Bit 28th Sept || Apple to start production of Iphone 14 in Foxconn's TN facility || Razorpay's acquisition spree & More
BGS Committee
September 28, 2022
Good Morning! “Is It Too Late Now to Say Sorry?”
Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET DATA
BSE SENSEX : ₹57,145.22 (-1.64%)
NIFTY 50 : ₹17,016.30 (-1.80%)
NIFTY BANK : ₹38,616.25 (-2.35%)
USD/INR : ₹81.38 (-0.30%)
BRENTOIL : $83.32 (+0.70%)
MCXGOLD : ₹49,125.00 (-0.56%)
FII Net Cashflow : - ₹5101 crores
DII Net Cashflow : + ₹3532 crores
(Market Data as of 7:00 AM on 27/09/2022)
ECONOMY:
World economy jolted by war with recessions now seen looming
The Story:
According to the OECD, the war in Ukraine has shocked the globe and reduced practically all growth projections for the Group of 20 next year while signalling additional interest rate increases. The Paris-based organisation predicted that in 2023, the global economy would only grow by 2.2%. According to the updated prediction for the year, the output will be $2.8 trillion less than officials had expected at the end of 2021.
Only Indonesia had a moderately better prognosis than the majority of the G-20's revised GDP predictions, according to the OECD. A lot of the countries also see considerably higher inflation. The perspective offers a snapshot of the coordinated shock brought on by Russia's invasion of Ukraine and the accompanying energy shortage, which has caused a severe rise in the cost of living.
Central banks have increased interest rates this month by more than 2,000 basis points to combat rising consumer costs. Officials from the OECD say that is still insufficient. According to the report, there is widespread inflation in many economies. To anchor inflation expectations and ensure that inflation pressures are reduced permanently, further interest rate hikes are required in the majority of the world's major economies.
INDUSTRY
Key Facts:
Apple's contract manufacturer Foxconn's Sriperumbudur factory has begun producing India's most recent iPhone 14.
Apple's contract manufacturer Foxconn's Sriperumbudur factory has begun producing India's most recent iPhone 14.
Cybermedia Research (CMR) and Counterpoint Research predict Apple's shipments for this year to reach a record 7-7.5 million in India in 2022
The Story:
Apple said they are very excited about its future for India, as apple started iPhone 14 production in the Chennai plant and signed a contract with Foxconn's Sriperumbudur for its production in India. Apple wants to deepen its presence in the world’s second-largest smartphone market and must provide it at affordable prices. That’s why they shift their plant to India from China. Another reason is establishing new international production hubs to reduce its dependency on China. Apple is eyeing India as a major manufacturing center and shifting its one-fourth of production to India by 2025 from China.
Apple is expected to have a 4% market share overall in the Indian smartphone industry this year, with a 47% premium market share. A new iPhone model's India production cycle has been gradually shortened by Apple from 10 to 12 months to six months since its launch. The new facility for iPhone 14 provides more job opportunities and investors' faith in investing in India.
RETAIL
The Story:
Bata Corp. is exploring ways to scale its India business into a sourcing hub for exports, as it seeks to diversify production and procurement beyond China, Sandeep Kataria, global chief executive officer, Bata Group, said in an interview.
The move is part of the multinational company’s post-pandemic strategy to set up regional hubs and teams for both designing and manufacturing of footwear to feed its global stores network.
The pandemic had disrupted supply chains and goods movement across the globe leading to product shortage. That apart, freight costs have also moved up significantly. As a result, many companies are looking to localise production and supply chains to reduce their dependence on a single region.
TECH
Key Facts:
Fourth acquisition for Razorpay this year and seventh in total - PoshVine.
PoshVine's 36-member team to join Razorpay to operate its loyalty and reward vertical.
List of acquisition's by Razorpay this year -
Curlec - Recurring payments fintech
IZealiant Technologies - payments technology solution provider for banks
Ezetap - offline point-of-sale company
PoshVine - loyalty and rewards management platform
The Story:
According to Shashank Kumar, general director, and co-founder of Razorpay, "We continue to see a growing opportunity to collaborate with banks and assist them to enhance their financial infrastructure.” Banks are apprehensive about whether their credit card service will be utilized, despite being able to attract customers. When it comes to incentives and loyalty, it is crucial to present the proper offer in the appropriate situation. With the purchase, retailers should be able to streamline the process of presenting discount offers to banks, deliver timely and personalized offers to customers, and accept payments from customers using their bank's credit cards at checkout.
By integrating PoshVine's loyalty and reward programmes on its point-of-sale network, Razorpay hopes to improve the offline shopping experience for customers. PoshVine, a 2011 startup, provides banks, fintech companies, and payment networks with offers and incentive management systems to boost consumer engagement. Currently, the platform gathers offers from more than 5,000 retailers and provides banks with a single solution that is subsequently made available to credit card customers. The self-funded firm collaborates with over 20 banks and card networks throughout India and Southeast Asia, including SBI Card, HDFC Bank, Visa, DBS, Kotak Mahindra Bank, AU Small Finance Bank, and American Express (Amex).
Want More Bits?
The Story
Global emissions must be cut in half by 2030, mostly through the widespread use of industrial technologies like wind turbines, solar panels, and electric vehicles. Even if they don't immediately reduce emissions considerably, emerging climate technology must also reach the market throughout this decade. According to the International Energy Agency, almost half of the reductions required to reduce emissions to almost zero by 2050 must come from technologies that are not yet commercially available because they are either too expensive to produce, haven't been scale-tested, or both.
Only a few number of clean technologies, such silicon solar cells, onshore wind turbines, light-emitting diodes (LEDs), and lithium-ion batteries, have made the transition from research labs to widespread use. And it took them years to develop to the point where they could substantially lower world emissions. This transformation will be driven by clean energy technology in the electric power, transportation, industry, and building sectors because the use of fossil fuels in these sectors is responsible for 75% of the world's greenhouse gas emissions.
According to a 2021 analysis by Vivid Economics, the green premium for some important technologies would still be too high by the end of this decade if there was insufficient public and private financing for the research, development, and commercialization of new technologies.
So how do you speed innovation?
One approach is to guarantee future client demand. As a result, investors and innovators are encouraged to scale up unproven technology and look for quick cost-cutting opportunities.
Over 50 of the largest companies in the world are members of the First Movers Coalition, which was established by President Joe Biden, John Kerry, the US special presidential envoy for climate change (and my boss), and the World Economic Forum. These companies have all committed to acquiring emerging climate technologies by 2030. These include low-carbon steel and aluminium, zero-emission trucks, clean fuels to decarbonize transportation, and cutting-edge technology to remove carbon from the atmosphere.
Entrepreneurs today have access to a more robust innovation environment in addition to encouraging government policies everywhere. Some of the honorees on this year's list of "Innovators Under 35" have their technologies incubated at US national laboratories, obtained funding and assistance from significant energy and automotive companies, and entered the portfolios of so-called "patient capital" investors like Breakthrough Energy. This broad range of finance sources, particularly for American innovators, can assist a business in navigating the infamous "valley of death" and bringing a technology from prototype to mass production.
