• 11 months ago
#AdaniGroup to invest over Rs 2 lakh crore in Gujarat; Q3 earnings of IT pack kicks off from tomorrow and more.


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00:00 (upbeat music)
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00:40 - Prime Minister Modi inaugurates the 10th edition
00:53 of the Vibrant Gujarat Summit in Gandhinagar.
00:55 Says the government aims to make India
00:57 a developed nation in the next 25 years.
01:00 While the finance minister said that India
01:01 will be the third largest economy by 2027 and 28.
01:06 (upbeat music)
01:08 Adani Group pledges investments
01:09 of over two lakh crore rupees in Gujarat
01:12 after surpassing the 50,000 crore rupees
01:15 promised in the last year's Vibrant Gujarat Summit.
01:18 Over one third of Reliance Industries'
01:22 150 billion dollar investment in India
01:25 over the last 10 years was made in Gujarat.
01:28 This was said by Chairman Mukesh Ambani
01:30 at the Vibrant Gujarat Summit.
01:31 Adds that the company will set up India's first
01:33 and world-class carbon fiber facility at Hazira.
01:37 Auto companies go big on electric vehicles
01:42 at the Vibrant Gujarat Summit.
01:44 Maruti will invest 35,000 crore rupees
01:46 for a second plant in the state.
01:48 While Tata Motors announces that it will set up
01:51 a lithium-ion battery manufacturing unit.
01:53 Benchmark indices close in the green.
01:59 Nifty Bank snaps its three-day losing streak.
02:03 (upbeat music)
02:05 Nifty IT gains ahead of TCS earnings tomorrow,
02:08 but analysts expect a muted quarter
02:11 for the IT companies due to seasonality,
02:13 as fewer working hours and furloughs
02:15 are expected to weigh on the revenue.
02:17 (upbeat music)
02:22 Hello and welcome.
02:29 You're watching The Reporter on NDTV Profit,
02:31 and I'm your host, Pragati Oberoi.
02:33 Before we start the show,
02:34 let's take a quick look at how the markets fared
02:36 during the day.
02:37 My colleague, Harsh, joins in
02:38 with all the D-Streep at action.
02:40 - Well, absolutely.
02:42 You saw market close in the green.
02:44 Second consecutive day in the green for markets.
02:47 We're now in the green for the week as well,
02:50 a third of a percent higher for the benchmark,
02:54 Nifty 50 index, which will come up on your screen.
02:58 - Right, and your Nifty Bank was up
03:00 a quarter of a percent as well.
03:02 So that's a couple of big positives coming through.
03:05 Let's have a look at how the market fared,
03:07 because for most of the day,
03:09 the market traded in a super tight band,
03:11 and towards the last half an hour to 45 minutes,
03:14 we saw a really good recovery when it came to markets.
03:18 It was a soft day of trade through the day,
03:21 except that last half an hour of trade,
03:23 where you see that spike.
03:25 And little did I expect that markets would close
03:28 above the 21,600 mark,
03:30 but that's exactly what the Nifty has done for today.
03:33 So nothing at all to complain about.
03:35 What led the gains?
03:36 Let's talk about Reliance,
03:38 because that one was in focus,
03:39 and you can see an identical spike on Reliance.
03:42 That's what's really led markets higher.
03:45 Let's look at the contributories,
03:46 because Reliance has contributed
03:48 roughly 60 points to markets today.
03:52 We've closed 80 points, 75 odd points higher,
03:54 60 points contributed by Reliance alone.
03:58 The other one in the pack was ICICI Bank,
04:01 which was in the green through the day.
04:03 So those were the two big contributories in trade today.
04:07 When you look at the negatives,
04:09 no significant stock really contributed to the negatives.
04:13 So that is one key piece, Reliance up 2.9%,
04:17 especially given the last half an hour or so of trade.
04:21 Let's quickly switch focus to the broader markets.
04:23 They've moved in tandem with the benchmarks.
04:26 You saw the Nifty Mid Cap also close in the green,
04:29 definitely a positive.
04:30 The Small Cap Index also closing in the green.
04:34 The advance decline ratio, which almost through the day,
04:37 was in favor of the declines,
04:39 closed in favor of the advances.
04:41 So that was one other key piece,
04:44 which was a positive to close the day today.
04:47 Last off, let's also look at sectoral indices,
04:49 because you have the likes of a Nifty IT Index,
04:52 which will be in focus,
04:53 but the Nifty Media Index was in focus today.
04:56 Top sectoral gainer, Nifty IT traded higher.
04:59 And among the losers,
05:01 you had just four on the Nifty 50 among sectors.
05:05 - Thanks so much for that quick market wrap, Harsh.
05:09 Let's move on to the big news of the day.
05:12 That is the vibrant Gujarat Global Summit.
05:15 Now the 10th edition of this summit
05:17 kicked off in the presence of top global leaders,
05:20 India Inc. CEOs, and the dignitaries
05:22 with the theme Gateway to the Future.
05:24 34 partner countries and delegates
05:26 from over 130 countries are attending the summit.
05:30 A slew of deals pertaining to economic development
05:32 have also been signed between nations
05:34 with the added impetus on sustainability.
05:37 To wrap all that action,
05:39 we have for you Janani Janardhan joining us.
05:41 Janani, what are the key takeaways from the summit?
05:44 - The India growth story.
05:47 That seems to be the biggest topic of conversation
05:49 here at the Vibrant Gujarat Summit here in Gandhi Nagar.
05:53 Throughout the day, we've heard business leaders
05:55 talk about their commitments in various priority sectors,
05:58 be it green hydrogen, be it renewable energy,
06:01 semiconductors, you know,
06:03 these are some of the priority sectors
06:05 that even the Prime Minister also highlighted in his speech.
06:08 He was talking about how the country can be a developed nation
06:11 in the next 25 years.
06:12 And in fact, the goal of being the third largest economy
06:15 is not that distant.
06:17 The Finance Minister, who spoke a little while earlier
06:19 spoke about how, you know,
06:21 this target of being the third largest economy
06:23 is a very possible goal for 2027 and 28.
06:27 Now this gains prominence as the country goes to polls
06:30 a little later this year.
06:32 What we are getting to hear,
06:33 the palpable tension here is of course,
06:35 on the investment momentum.
06:37 And that seems to be going right here in Gujarat
06:39 at the 10th edition of the Vibrant Gujarat Summit.
06:42 It's a wrap for the first day.
06:43 We'll be getting to hear more from more world leaders
06:46 and India business leaders on NDTV Profit.
06:50 That's all we have for you now.
06:52 That was a quick wrap from the summit
06:54 and all that has happened so far.
06:55 Moving on, Prime Minister Narendra Modi
06:57 in his address at the Vibrant Gujarat Summit
07:00 spoke about India's goal for the next 25 years
07:04 and how it aims to become a developed nation.
07:06 Here's a look.
07:07 India is now working towards its next 25 years.
07:16 India is now working towards its next 25 years.
07:19 When India celebrates its 100th anniversary of independence,
07:29 we have set the goal of making India a developed nation.
07:40 And that's why this 25-year project is India's golden age.
07:51 That was PM Modi at the summit.
07:53 Finance Minister Nirmala Sitharaman was also present
07:57 at the Vibrant Gujarat Summit.
07:58 Now, while addressing the attendees,
08:00 she emphasised on the mission of making India
08:03 the third largest economy by 2027-28.
08:09 Vikasad Bharat Agenda is a comprehensive vision plan
08:13 which is being developed by the Government of India.
08:16 I appreciate the effort of the state
08:18 in getting this already on board.
08:22 India today is at a turning point,
08:23 as what the previous speaker has been saying.
08:29 21st century will be our century is one thing.
08:33 But even by 2027-28,
08:39 it is believed that we surely will be able to reach
08:42 the third largest economy goal.
08:46 Now, after PM Modi and Finance Minister,
08:48 let's now get to the key voices from India Inc.
08:51 that were also present at the Vibrant Gujarat Summit.
08:54 Now, Gautam Adani, Chairman of the Adani Group,
08:56 said that the company will invest over Rs 2 lakh crore
09:00 in Gujarat over the next five years.
09:04 Over the next five years,
09:06 the Adani Group will invest over Rs 2 lakh crore in Gujarat.
09:16 Thereby creating over 100,000 direct and indirect jobs.
09:21 I am grateful for your support.
09:25 It is my commitment that I will do my part
09:29 to contribute to a vixit Gujarat.
09:33 Reliance Chairman Mukesh Ambani said
09:35 that the company has invested over $150 billion
09:39 in the last 10 years in India.
09:41 Now, of this, one third is invested in Gujarat alone.
09:44 Here's what he said.
09:47 Reliance has invested over $150 billion,
09:54 that is, Rs 12 lakh crores,
09:56 in creating world-class assets and capacities
10:00 across India in the last 10 years.
10:03 Of this, more than one third has been invested in Gujarat alone.
10:09 Reliance will continue to play a leading role
10:13 in Gujarat's growth story
10:15 with significant investments in the next 10 years.
10:19 Specifically, Reliance will contribute to making Gujarat
10:24 a global leader in green growth.
10:27 Tata Sands Chairman N. Chandrasekaran
10:30 spoke about the conglomerate's plans and expansion in the state,
10:34 especially in the electronic vehicle space.
10:38 Sanand is becoming home for all our electric vehicles technology.
10:44 We expanded the footprint in Sanand with additional capacity
10:49 so that we can meet the growing demands of the electric vehicles.
10:55 We concluded and are about to launch
10:59 the building of a huge gigafactory
11:03 for 20 gigawatts of lithium-ion batteries in Sanand.
11:09 The project should start construction
11:12 in the next couple of months.
11:15 More from the auto space.
11:16 Maruti will invest Rs 35,000 crore
11:20 for a second plant in the state,
11:23 Toshihuru said at the Vibrant Gujarat Summit.
11:27 Suzuki Group will invest Rs 3,200 crore
11:33 in Suzuki Motor Gujarat
11:35 to add a new horse production line
11:40 which can produce 2.5 lakh units per year.
11:47 This will increase the annual production capacity
11:51 of Suzuki Motor Gujarat
11:53 from the current 7.5 lakh to 1 million units.
12:02 Thirdly, we will invest Rs 35,000 crore
12:08 for the construction of a second car plant in Gujarat.
12:14 Quite an action-packed day in terms of the India Inc. voices.
12:18 Our colleague Janani also had the chance to speak to Amul's MD, Jain Mehta.
12:22 Let's watch what he had to say about the Vibrant Gujarat Global Summit
12:26 and the company's product portfolio going forward.
12:30 I think this summit is a very good platform
12:32 to not just talk about the investment plans
12:34 but also showcase what the potential the state has,
12:37 what we offer to the world
12:39 and also talk about the plans that we have.
12:42 Talking about Amul, we are a cooperative of Gujarat.
12:44 We started in Gujarat way back in 1946
12:48 and we are the largest food and FMCG brand of the country,
12:51 among the strongest dairy brand and food brand in the world.
12:54 We have strong investment plans.
12:56 Since we are a Gujarat-based company,
12:58 we will be doing an investment of more than 11,000 crore rupees
13:01 in the next couple of years
13:03 and build on the market for milk products
13:06 and the investments will be not just in the processing part,
13:09 it will also be in the production part,
13:11 helping farmers to process milk in a very value-added way
13:16 and market it around the world.
13:18 So, we have very ambitious plans and at a turnover of about $10 billion this year,
13:23 Amul is poised to grow at a rate which is faster than the FMCG sector.
13:28 Coming to the growth picture,
13:29 I just want to take back to our conversations at the beginning of the year
13:33 when you were talking about a 20% revenue growth
13:35 that is being envisioned for FY24
13:37 and you were also talking about new product lines,
13:38 organic foods, edible oil.
13:40 So, how are these product lines faring?
13:42 What has been your FY24?
13:45 So, this year, as I mentioned, we are growing double-digit
13:48 and the milk production also has been keeping pace
13:51 and it's also growing at double-digit.
13:53 So, we are optimistic of achieving the target of 1 lakh crores in the next two years.
13:59 We'll also take a quick look at Sunil Bharti Mittal,
14:04 Chairperson of Bharti Enterprises,
14:06 who spoke at the Vibrant Gujarat Summit.
14:08 We have nearly 18,000 crore investment in Gujarat.
14:12 We have now 14,000 new towers, 20,000 kilometers of fiber,
14:17 serving over 12 million customers.
14:18 So, we're carrying on our dream here in this state.
14:21 And about India, what kind of expansions are you doing?
14:24 India is on air.
14:25 What's in the pipeline, sir?
14:26 No, no, we are, as you know, expanding all over the country.
14:28 We are one of the leading providers.
14:30 We have been on this journey, pioneering journey for over 20 years now
14:34 and the platform that India has now created for development
14:38 is unparalleled anywhere in the world.
14:41 So, everybody, as the Prime Minister said,
14:43 come and realize your dreams in this country.
14:48 Those were all the updates from the Vibrant Gujarat Summit.
14:52 Let's slip into a short break.
14:54 We have lots more lined up for you on the other side.
14:56 Stay tuned.
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21:03 on NDTV Profit. Let's move on to the earnings season the quarter third
21:07 earnings of the Q3 earnings of the ITPAC kicks off from tomorrow with
21:12 giants like TCS, Wipro, Infosys and others coming out with their numbers. My
21:16 colleague now joins in to give you quick updates on what's in store and what all
21:20 are the expectations of the street. Thank you so much Pragati. So essentially what
21:25 we are looking at from the ITPAC is seasonality at play in the October
21:30 December quarter. Now what do I mean by when I say seasonality? It effectively
21:34 means that there are fewer working hours and furloughs which will weigh on
21:37 revenue of IT companies. Deal-making has dried up after record Q2 discretionary
21:42 deals are absent. The deal pipeline is still elongated. Also these companies
21:47 have few margin levers in play to shore up profitability. So we have to wait and
21:51 watch what else will they do to sustain those margins at the levels at what they
21:54 see. Now what is in focus what we should watch out from these companies is the
21:59 guidance. What are the guiding for the January March quarter as well as for the
22:03 rest of the quarter rest of the fiscal and the full 2024. You also need to
22:07 watch out for the commentary on the IT budgets of clients in the US and the
22:11 evolving macros in the US on easing inflation and trade rate cuts because
22:16 that will actually decide how the rest of the year pans out for these IT
22:19 companies. Over to you Pragati. Alright thanks so much for those quick updates.
22:24 We also have something coming up from the global coffee chain Starbucks. Now as
22:29 we are getting the updates Starbucks has set quite a frothy target of doubling
22:34 its outlets in India by 2028. But the company's presence in the country as we
22:40 all know has also been dotted with couple of losses. My colleague Mahima
22:44 joins in with more on this. Mahima how has the company's performance been and
22:48 what are these targets like that the company is going ahead with? Starbucks
22:53 all stars and no bugs. Starbucks India's journey is dotted with losses. Let us
22:58 understand why. Starbucks is a JV of Starbucks and Tata Group and it has
23:04 invested over thousand crores in 11 years now and at present it has over 390
23:09 stores in India and if we see India accounts for 1% of Starbucks stores over
23:15 the entire world. Now going forward they're targeting that over thousand
23:20 stores of Starbucks will be added in India by 2028 and at present it is
23:24 present in 54 cities. Now this target means that in every three days Starbucks
23:31 will be adding one store in the next four years. So this will help the
23:36 workforce also double the workforce can reach up to 8,600 employees. But the
23:41 question really here is that is it viable for Starbucks because if we see
23:45 Starbucks took 11 years to scale their operations to a revenue of thousand
23:49 crore mark and FY23 reported a loss of 25 crores. So adding more stores means
23:55 they'll be pushing the profitability further under pressure and this will
23:59 also double the requirement for equity infusion by both Starbucks and the Tata
24:03 Group as well. Also if we compare the prices of Starbucks to the to their
24:08 peers we'll see that Starbucks coffee on an average cost you 300 rupees versus
24:12 that of CCD at 140 rupees, Costa at 230 rupees and Tim Hortons is 270 rupees. So
24:18 Starbucks at present is selling the most expensive coffee when compared to its
24:22 peers. So the question really here is that whether the store expansion is
24:27 viable or not. That was a special segment called all stars and no bugs and that's
24:32 also all that we have for you on The Reporter but for all the fresh news and
24:36 updates please keep watching NDTV Profit.
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