Business News at 10:00 am on 19th December 2023

Let’s begin, Adani Ports and Special Economic Zone has entered into a second strategic partnership with Terminal Investment Limited, the container terminal operating and investing arm of MSC, for the operation of Adani Ennore Container Terminal (AECTPL). This second joint venture builds on the success of the 2013 joint venture with TiL for Adani International Container Terminal (AICTPL), which operates CT3 Container Terminal at Mundra Port, the company said in a regulatory filing. Terminal Investment, through its fully owned subsidiary Mundi Ltd, will acquire a 49 per cent shareholding of AECTPL from APSEZ for a consideration of Rs 247 crore. The total enterprise value of AECTPL is Rs 1,211 crore, it stated. After the completion of the transaction, APSEZ would hold 51 per cent stake in AECTPL.

Next up, Titan Company said that its subsidiary TCL North America has signed an agreement to acquire 10 per cent holding in CueZen, a Delaware Corporation. In a regulatory filing, the company said, quote, “This is to inform you that TCL North America Inc., a wholly owned subsidiary of the Company, has today signed a Series Seed Stock Purchase Agreement with CueZen, a Delaware Corporation, for subscription of Series Seed Preferred Stock in the Common Stock, which would result in TCL NA holding 10 per cent in CueZen on a fully diluted basis,” unquote. TCL North America said that the cost for the acquisition of 10 per cent holding in CueZen is $3.5 million and it will be completed by December 31, 2023. Moving on, Dr. Reddy’s Laboratories on Thursday announced that it has won back-to-back global recognitions for its commitment and progress on sustainability and Environment Social and Governance (ESG) agenda. Dr. Reddy’s has become the first Indian pharma company to earn a place in the Standard & Poor Dow Jones Sustainability World Index (DJSI World) for 2023. Alongside its debut in DJSI World, the company retains its place in the Dow Jones Sustainability Index for Emerging Markets (DJSI EM) for the 8th year in a row. The DJSI recognitions are based on Dr. Reddy’s performance in the Standard & Poor Global Corporate Sustainability Assessment (S&P Global CSA) and additional screening criteria. Dr. Reddy’s scored 77 out of 100 in the 2023 S&P Global CSA, achieving full scores in Innovation Management, Impact on Access to Healthcare, Climate Risk Management, and Resource Efficiency and Circularity. Now let’s talk about Railways, Railway Minister Ashwini Vaishnaw, in a written reply, informed the Lok Sabha that the Indian Railways would require around 30.13 billion units of electricity after 100 per cent of its broad gauge lines. The minister said this in reply to a query by BJP MP Rajesh Chudasama who wanted an update on the electrification. Vaishnaw said the Indian Railways is progressively procuring renewable energy from various sources for its present and future requirements. He added that a total of 60,814 km of broad gauge lines within Indian Railways have been electrified, as of November 2023. Next up, aviation. Union Minister Jyotiraditya Scindia today said that next year the DigiYatra facility will be expanding to 25 more airports across India. As of now, the facility is available at 13 airports for domestic passengers. Scindia said that the facility will be introduced at 14 airports in the first phase, followed by another 11 airports in the second phase in 2024. With the facility’s introduction at the 25 airports, the total number of airports supporting DigiYatra will go up to 38, he said at a briefing in New Delhi. The DigiYatra is a biometric-based mobile application facility which allows contactless, seamless movement of passengers at various checkpoints at airports based on Facial Recognition Technology (FRT). Now we take a look at the market, Jefferies has shed light on a groundbreaking development that could reshape the insurance industry – the introduction of the “threshold premium” concept. While still in the consultation stage, this innovative idea has the potential to significantly impact insurers by influencing surrender values and, subsequently, trimming fees inversely. According to Jefferies analysis, the proposed threshold premium concept is currently in the consultation stage, with final terms to be determined through ongoing deliberations. The report highlights that this potential shift could introduce a new dynamic to the insurance sector, prompting insurers to reassess their strategies and adapt to the evolving regulatory landscape. Lastly, Jefferies has maintained its ‘Buy’ recommendation on PI Industries, albeit with a revised target price of Rs 4,120 per share, citing valuation concerns. Despite the adjustment in the target price, Jefferies remains optimistic about the company’s prospects, underscoring key growth drivers and strategies outlined by the innovator. PI Industries, an innovator in the agrochemical sector, has signaled a commitment to volume-driven growth in its key product for the fiscal year 2024, despite implementing a price reduction strategy aimed at safeguarding market share.