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- Bit by Bit 5th Dec. || Maruti Suzuki May Fall Short of Its Production Target for FY23 || Rolls-Royce successfully tests hydrogen-powered jet engine & more
Bit by Bit 5th Dec. || Maruti Suzuki May Fall Short of Its Production Target for FY23 || Rolls-Royce successfully tests hydrogen-powered jet engine & more
Good Morning Readers!
Anyways, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
(Markets were closed on 4/12/2022, Sunday)
ECONOMY
Key Facts
Repo rate likely to increase in MPC meeting
The repo rate has been increasing steadily since May this year to curb inlfation
Monetary policy stance may change to "neutral"
The Story
RBI likely to continue with its trend of repo rate hike in its MPC meeting between 5-7 December. Economists say a rise of 35 bps is expected while a 25 or 50 bps hike is also possible. The RBI has raised the repo rate by 190 basis points since May this year to curb inflation, which remains above the 6% limit set by RBI
The domestic inflation trajectory while remaining above the upper limit of the RBI’s inflation target band is gradually moderating. Domestic demand remains steady though risks of a global demand slowdown are increasing which is likely to impinge on India’s growth. The external sector situation remains uncertain. Inflation in most developed economies remains elevated but showing signs of peaking,” said chief economist of Kotak Instituonal Equities, Suvodeep Rakshit.
“While we continue to peg GDP growth at 7.0% given the reasonably healthy domestic demand, downside risks to the forecast have increased due to the intense global headwinds. We continue with our expectations of a moderate hike of 30-35 bps in the repo rate in Dec-22 as the growth data has been in line with RBI’s forecasts,” said Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research.
The Monetary Policy Committee stance may shift from " Withdrawal of accommodation" to "neutral".
FMCG
The Story
Consumers will have to wait even longer for price reductions in other items, despite huge price drops in main commodities. Top FMCG businesses claim that although prices of some commodities, including palm oil, have declined, the decrease has not been "secular and broad-based," and they are closely monitoring it before making any decisions about lowering the price, according to PTI.
By lowering the MRP (maximum retail price) of their products, FMCG companies will be able to pass on the benefits to customers while simultaneously increasing their profit margins.
Suresh Narayanan, the chairman and managing director of Nestle India, said the company is keeping an eye on the situation. Along with palm oil, the cost of edible oil has decreased in recent months. Recently, numerous FMCG manufacturers reduced prices or upped the weight of various large packs of packaged food, benefiting customers.
While commodity prices are not currently softening, Varun Berry, Vice-Chairman and Managing Director of Britannia Industries, believes they will in the future.
Comparing the September quarter to the three months before, the FMCG industry saw a 0.9% overall volume decline.
The report did note, however, that FMCG producers continued to introduce new products because, in the third quarter of 2022, new releases contributed more to key FMCG categories than they had in the prior quarter.The majority of these new product offerings involve adjustments to pack sizes, which may be the result of manufacturers using lighter weights due to the high cost of raw materials.
AUTOMOTIVE
Key Facts :
In an address to shareholders earlier this year, Maruti Suzuki India Chairman RC Bhargava stated that the automaker plans to enhance production this year. With the semiconductor supply improving, he set a target of generating 20 lakh units in the current fiscal year.
Will the firm, however, be able to reach its goal of producing 20 lakh units? Shashank Srivastava, Maruti Suzuki's Senior Executive Officer for Marketing & Sales, believes that the corporation may fall just short of the goal.
The Story :
When asked if the company was on track to challenge the objective, Senior Executive Officer, Marketing & Sales Shashank Srivastava said, "By our present calculations, I think it should be slightly short of that amount. However, he added that the business is still relying on a remote possibility of meeting the challenge through the fulfillment of its outstanding orders, which total about 3.75 lakh units.
One of the elements that affected the company's output at the start of the fiscal year was the lack of semiconductors. The lack of electronic components, though it has been steadily getting better, is still expected to have a greater impact on production in December 2022 than it has in prior months, according to Maruti Suzuki, which said it was doing everything it could to lessen the effect.
Maruti Suzuki is putting its bet on enhancing its SUV portfolio to offset the decline in sales of the non-premium hatchbacks, its core segment, which declined by 5 percent in FY22 due to rising costs as compared to 2020-2021
TECH
The Story
British company Rolls-Royce (RR.L) announced that it has successfully operated an airplane engine on hydrogen, a first in aviation history and a significant step toward demonstrating the gas could be essential to decarbonizing aviation.
The ground test utilized green hydrogen produced by wind and tidal power and employed a modified Rolls-Royce AE 2100-A regional aviation engine, the British business announced on Monday.
In order to demonstrate that hydrogen can safely and effectively supply electricity for civil aircraft engines, Rolls and its testing program partner easyJet (EZJ.L) are conducting tests.
With the longer-term goal of conducting flying testing, they claimed to have already begun organizing a second round of tests.
A380 superjumbo test planes would have a specifically modified version of a current generation engine installed at the back, the company stated in February.
Want a BIT More?
Prime Minister Narendra Modi delivered a momentous speech in Glasgow, Scotland, a little more than a year ago, and it will permanently change the course of India. He set an objective for India to attain net-zero by 2070 at the COP26 climate meeting. In addition, he promised that by 2030, renewable energy sources would supply 50% of India's energy needs.
This was a turning point for the entire world, not just India. One of the greatest risks we face as a species is climate change, and it is up to us all to take immediate action to ensure that the world is habitable for our children and their children. It was appropriate that Modi picked Scotland, one of the first nations to declare a climate emergency, to make these net-zero and renewable energy commitments.
This landmark agreement will create a fund for loss and damage (L&D). Scotland was able to contribute in a small way to that voyage by engaging with other wealthy nations and being the first to make a financial commitment. We also understand that the biggest obstacles can be overcome when we work together through multinational alliances.
