Business News at 10:00 am on 2nd May, 2024

Let’s begin. The government is considering setting up specialised zones dedicated to promoting exports through e-commerce. The idea is to free businesses from most of the existing compliance requirements and provide them the flexibility for direct-to-consumer sales across the national border. According to a plan, which is a part of the 100-day agenda of the commerce ministry, the proposed e-commerce export zones are likely to be driven by private investments, but the government would enable them via necessary policy changes. The dedicated e-commerce export hubs, according to the ministry’s plan, will have warehousing, customs clearance, returns processing, labeling, testing and repackaging, and related facilities. These will be on the lines of export-oriented units.

Meanwhile, India’s gross goods and services tax collections rose 12.4% on year to hit a record high of Rs 2.1 trillion in April, due to a variety of factors, including streamlining of accounts by businesses for FY24, electoral expenses by political parties and a modest recovery in rural consumption. Previously, the highest-ever GST collection figure stood at Rs 1.87 lakh crore in April 2023. According to data released by the finance ministry on Wednesday, GST collections during April (mostly for March transactions) were driven by a stronger increase in domestic sales than imports. This too cements the notion that consumption, which has remained subdued and skewed towards premium articles, may now tend to be more broad-based.

On to real estate. The land holdings owned by Godrej & Boyce Manufacturing Company, part of Jamshyd Godrej-controlled Godrej Enterprises Group, in Vikhroli area of Mumbai, can generate sales of over Rs 3 trillion if it goes for residential property development in the area. Residential properties are selling at upwards of Rs 30,000 per sq ft in Godrej’s projects in the vicinity. About 100 million sq ft of real estate could be developed on the land owned by Godrej & Boyce, according to estimates from industry experts. Of the 3,400 acres owned by Godrej & Boyce in Vikhroli, about 1,000 acres can be developed while 1,750 acres has mangroves and cannot be developed because of environmental concerns. The balance 300 acres has been encroached upon.

Over to industry. The Adi and Nadir Godrej family and trusts have made an open offer to acquire an additional 26% stake in Astec Lifesciences, as part of the family settlement. The open offer for Astec Lifesciences is for up to 5.09 million shares for Rs 1,069.75 per share, totaling Rs 545.47 crore. The open offer, on full acceptance, will cost Rs 545 crore to the Adi/Nadir family, said a regulatory update. The offer was triggered from the Adi/Nadir family’s plan to acquire 20.84% stake in Godrej Industries from the Jamshyd Godrej/Smita Crishna Godrej family. Following the settlement deal, the total voting rights of the Adi/Nadir family and Anamudi in Godrej Industries will increase to 52.01%.

Moving on. Banking on the country’s growth potential, Vedanta Group is planning to invest $20 billion in India in the next four years, said chairman Anil Agarwal. The investments will happen mostly in the technology, electronics, semiconductors and glass segments, he added. Agarwal said, quote, “Investments in electronics, technology and glass are important to create a lot of industries and jobs. Semiconductors and glass – used in making smartphones and laptops screens – are very essential from a future perspective, and for both we have factories in Taiwan and Korea,” unquote. For its semiconductor business, Vedanta Group has bought land in Gujarat, while it is making progress on the glass business.

Indus Towers on Wednesday said the company’s cash flow position may improve in the current financial year as it is confident of recovering its past dues from Vodafone Idea after its successful Rs 18,000-crore follow-on public offer. Indus Towers is engaging with Vodafone Idea for a revised payment plan to clear the outstanding dues of Rs 5,385 crore on which the former created a provision of doubtful debt as on March 31, 2024. The payment plan may also include the amount recorded as trade receivables (which also includes interest on past dues) from Vodafone Idea in the books of Indus Towers. As on March 31, Indus Towers’ total trade receivables stood at Rs 6,451 crore. This is over and above the Rs 5,385-crore provision created on doubtful debts.

Lastly, let’s see the stocks in focus today. These include Adani Total Gas, Indus Tower, Ambuja Cement, TVS Motors, Godrej Group, BSE, Adani Enterprises, and Coal India. Indus Tower reported a 6.52% increase in revenue, reaching Rs 7,193 crore compared to Rs 6,753 crore in the previous year. Adani Total Gas has reported a 5.09% increase in consolidated revenue, reaching Rs 1,167 crore compared to Rs 1,115 crore in the previous year. The company’s EBITDA surged by 47.57% to Rs 288.02 crore from Rs 195.17 crore, with margins rising by 717 basis points to 24.68% from 17.5%.