Morning Scan: All the big stories to get you started for the day

Indian contract manufacturer Dixon Technologies will make Alphabet’s premium Google Pixel 8 smartphones in the country, the Economic Times reported. The first batch of the made-in-India devices are expected to hit the market by September as trial production has already begun, executives said. Alphabet had announced in October last year that it will make Google Pixel smartphones in India.

Why it’s important: Smartphone manufacturing has taken off in India on a strong policy push and tech companies wanting to diversify supply chains away from China. Google’s Pixel was the only large global smartphone brand that was missing from the mix as both Apple and Samsung are already in the play.

#3. Adani prepares massive war chest of $3 billion to possibly acquire three global ports

The Adani Group has readied $3 billion to build a strong ports presence in the India-Europe corridor, the Mint reported. It has set its sights on three large ports across coastal Europe, Africa and Southeast Asia and is likely to increase its capacity to 800 million tons a year in the next two years via a series of buyouts.

Why it’s important: With the new overseas acquisitions, the Adani Group will become a global force to reckon with in ports and logistics. It also aims to capitalize on India’s rising demand for imports of iron ore and coal, and exports of finished goods.

#4. Hero Electric, Benling India barred from all EV incentive schemes on rules violations

The heavy industries ministry has barred Hero Electric and Benling India, the two defaulters under its flagship FAME-II electric vehicles scheme, from participating in any of its programs in the future. The action follows the ministry’s findings that the phased manufacturing program guidelines were violated by them. The government now seeks to recover around Rs 200 crore from the two companies.

Why it’s important: The ministry had deregistered four other companies as well. Since the sales of electric two-wheelers seem to have passed an inflection point, it remains to be seen whether the incentive scheme to boost local value addition would be slimmed down.

#5. KKR appoints banks to sell industrial waste business of RE Sustainability for $1 billion

KKR & Company has set the stage for an exit from RE Sustainability, selling the municipal business back to its founders, and hiring bankers to find a buyer for the remaining industrial waste business, the Mint reported. The global private equity firm is seeking a valuation of $1 billion for its entire stake.

Why it’s important: This is KKR’s second attempt to sell the business after trying a sale in August 2021 and a public listing. It has already sold the municipal waste business back to the promoters.

#6. Gail may invest up to Rs 50,000 crore in capital spending in huge petrochemical bet

State-owned Gail (India) plans to invest up to Rs 50,000 crore to build a 1.5 million ton per annum ethane cracking unit at Sehore in Madhya Pradesh, the Economic Times reported. The new facility is expected to help Gail meet local petrochemicals demand, which is expected to nearly triple to $1 lakh crore by 2040.

Why it’s important: This is among the biggest proposed capital expenditure by the state-run gas utility. The firm is extremely bullish on the petrochemicals segment.

#7. Sales of ACs, coolers and cold drinks soar as intense heatwaves level up power demand

The rising mercury across vast swathes of India has pushed power demand to an all-time high, with a section of the industry shining with a spurt in sales of ACs, coolers and beverages, the Hindu Businessline reported. There has been a massive jump in demand for air-conditioners and coolers and many manufacturers have scaled up production.

Why it’s important: Summer temperatures are rising and the business of colling will naturally see a jump. Companies in the sector are not complaining.

#8. Silver nears Rs 1 lakh a kilo, sparking concerns of profit booking and diminishing sales

Higher silver prices may deter buyers and spark profit-booking if the precious metal rises to the psychological mark of Rs 1 lakh a kg, the Mint reported The metal has surged 26 percent this year so far, from Rs 73,501 in early January to a record Rs 92,475 on Tuesday.

Why it’s important: The demand for silver articles has slumped over the past few months because of the surge in prices. Silver’s rally has been driven by a parallel rise in gold and copper prices to record highs.

#9. Laptop and tablet imports from China surged 47 percent in March to $273.6 million

Five months after India started monitoring imports of major electronic hardware products, inbound shipments of laptops and tablets from China surged by 47.1 percent to $273.6 million in March, the Business Standard reported. In November, when the government’s online monitoring system for the import of electronic hardware items became operational, imports from China had contracted by 14 percent.

Why it’s important: India’s key trading partners have expressed concerns over the online monitoring system at the World Trade Organization. It seems to have no effect on inbound shipments from China.

#10. Administrators of bankrupt firms approach tribunal to reverse dubious deals worth Rs 31,000 crore

The administrators of insolvent companies have approached tribunals to reverse questionable pre-bankruptcy transactions of businesses worth over Rs 31,000 crore from 131 cases in the March quarter in an effort to maximize the resources available for restructuring them, the mint reported citing official data. The number of such voidable transactions has gone up to 1,237 at the end of March, estimated at Rs 3.7 lakh crore, up from Rs 3.39 lakh crore at the end of December.

Why it’s important: These dubious deals include preferential, undervalued, fraudulent and extortionate transactions. The authorities have been encouraging debt resolution professionals to move tribunals to reverse these questionable transactions by the erstwhile management of sick businesses.