Electric vehicle (EV) manufacturing giant Tesla is likely to enter India with its manufacturing plant in Gujarat next year, as per multiple media reports.

The EV maker’s negotiation for the establishment of its first manufacturing unit in India is in the final stage and is likely to conclude soon.

Meanwhile, as per a report by Ahmedabad Mirror, the announcement regarding Tesla’s manufacturing unit in the state is anticipated to be made during the forthcoming Vibrant Gujarat Summit scheduled for next month.

Gujarat is already home to manufacturing units of automakers like Maruti Suzuki, etc and it is anticipated that for Tesla’s manufacturing plant possible location could be Sanand, Becharaji and Dholera.

However, so far, there has been no official announcement by the EV maker or the state government on the matter. 

During a recent Cabinet briefing, Gujarat Health Minister Rushikesh Patel expressed optimism about Elon Musk’s investment in Gujarat. 

He highlighted the state’s awareness and alignment with Tesla’s overarching goals, drawing a parallel during the address.

Patel also emphasised that the government is actively in talks with the EV maker to finalise the deal on establishing the manufacturing plant in Gujarat.  

Media reports also suggest that Gujarat has become a prime choice for Tesla’s manufacturing plant, not only due to favourable state policies but also its proximity to ports, facilitating product exports. The strategic location, particularly in Sanand, offers a short distance to the Kandla-Mundra port in Gujarat, enhancing Tesla’s export capabilities from India.

The vibrant Gujarat Global Summit was conceptualised in 2003. The tenth edition of the Vibrant Gujarat Summit will celebrate “20 years of Vibrant Gujarat as the Summit of Success”. The summit is dedicated to business networking, knowledge sharing, and fostering strategic partnerships for inclusive growth and sustainable development.

In August, Union Minister of Commerce and Industry, Piyush Goyal, reportedly met with senior Tesla executives in a closed-door meeting to discuss the carmaker’s plans to establish a manufacturing plant in the country.

Earlier, Tesla expressed interest in building a factory in India that would produce a low-cost electric vehicle (EV) priced at around $24,000 (INR 19.87 Lakhs), around 25% cheaper than Tesla’s current entry model for both the Indian market and export.

Tesla is working overtime on its plans to enter India, with multiple meetings taking place between the government and the carmaker’s executives since mid-May. Earlier, it was also reported that the carmaker has leased office space in Pune.

Tesla has leased an office spread over a 5,850 sq ft. area on the first floor of Panchsil Business Park in Viman Nagar, Pune.

Tesla also wants to bring some of its Chinese vendors to India but has been asked by Indian officials to copy Apple’s playbook in the country and ask its Chinese suppliers to set up joint ventures with Indian partners to get clearance.

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The talks for the merger of the media and entertainment operations of Reliance Industries Ltd (RIL) with Walt Disney Co’s India business moved a step closer with the companies signing a non-binding term sheet in London last week for it.

According to a report by ET, the stock-and-cash deal will result in RIL owning 51% stake in the combined entity. The merger is expected to be completed by February next year post regulatory approvals.

The report added that following the signing of the non-binding term sheet, a valuation exercise by independent valuers will begin and legal and tax advisors will be appointed to the board.

The acquisition is likely to take place with RIL setting up a new subsidiary which will absorb Disney’s Star India through a share swap deal. JioCinema, the OTT app of RIL, will also be included in the deal.

The merger will also include an immediate capital investment of approximately $1-1.5 Bn. The new entity’s board is anticipated to have equal representation from both the sides, with at least two directors from each. Bodhi Tree’s Uday Shankar, the second largest shareholder in Viacom 18 with over 15% stake, is likely to get a seat on the board of the new entity.

Walt Disney Co had acquired the entertainment assets of 21st Century Fox in 2019 for a whopping $7.1 Bn. Post the acquisition, Hotstar, a wholly owned subsidiary of Star India, was rebranded as Disney+Hotstar. At the time of acquisition Star India was one of the major cash cows for 21st Century Fox.

However, Disney has been in the hot waters ever since it lost the streaming rights for the Indian Premier League (IPL) in 2022 for the 2023-2027 period. The streaming rights were won by none other than Viacom18 for a record $6.2 Bn.

Following this, JioCinema streamed the IPL for free, which resulted in Disney+ Hotstar seeing subscribers leave in droves.

Besides this, Disney, earlier this year, announced that it would stop streaming HBO content. The development came on the heels of Disney not renewing the rights to stream Formula One in India.

While Disney+Hotstar recorded a peak viewership of 5.9 Cr as cricket returned to its platform in the form of ICC World Cup, the platform is still scrambling for new users.

Earlier this year, Disney Star also undertook a massive internal restructuring. 

With both JioCinema and Disney+Hotstar becoming a part of the merged entity, it would have one of the largest shares in the Indian OTT market.

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Unicommerce eSolutions Pvt Ltd, which offers a software-as-a-service (SaaS)-based order management and fulfilment platform to ecommerce and retail businesses, has roped in five industry leaders to its board.

The startup, which aims to go public late next year, has appointed former SoftBank India head Manoj Kohli, along with Ullas Kamath and Sairee Chahal as independent directors and Kunal Bahl and Rohit Bansal as non-executive directors. 

These appointments are poised to boost reach, institutionalise governance structure and steer the company into the next phase of growth, Unicommerce said in a statement.

Other than SoftBank, Kohli has served as the executive chairman of SB Energy Projects Private Limited as well as a managing director and CEO of Bharti Enterprises Limited. He had been instrumental in driving growth, profitability and operational excellence across multiple sectors, the statement added.

Meanwhile, Kamath was the joint managing director of Jyothy Labs, where he played a crucial role in the transformation of the company into a multi-brand FMCG corporate entity. 

Chahal is the founder of SHEROES, a women-focussed digital platform and an ecosystem with over 20 Mn women. She is also the founder of Mahila Money, a neobank for women, and cofounder of Fleximoms, which works towards creating, enhancing and co-creating workflex opportunities for women professionals.

Bahl and Bansal are the cofounders of Snapdeal, AceVector and Titan Capital.

“The depth and diversity of their expertise aligns seamlessly with our vision of anticipating and serving the evolving technology needs of our customers both in India and in other countries,” said Kapil Makhija, MD and CEO of Unicommerce.

Unicommerce was launched by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015.

The startup enables end-to-end management of ecommerce operations for D2C brands, retail companies, and other online sellers through its comprehensive suite of SaaS-based technology products.

Unicommerce’s platform keeps track of stocks across multiple warehouses, keeps inventory information updated across multiple sales channels (both offline & online) and automates order pick-ups to support faster and more accurate deliveries.

The startup generates revenue by selling its SaaS solutions. Including other income, its total revenue stood at INR 92.9 Cr in FY23 as against INR 61.3 Cr in the previous fiscal year.

Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services. This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

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Panasonic Life Solutions India (PLSIND) and Panasonic Corporation (PC) in collaboration with micro VC fund 100X.VC have selected 12 startups as part of accelerator programme Panasonic Ignition.

The accelerator programme was launched in October to support young entrepreneurs and provide them with investment, masterclasses, expert mentorship, product strategy and growth plans. 

The selected startups will participate in the accelerator programme over the next three months and will receive comprehensive support from both Panasonic and the 100X.VC teams. 

In addition to financial resources, the startups will also receive support in the form of mentorship sessions and guidance to complete their project, said a statement on Wednesday.

Commenting on the programme, Manish Misra, chief innovation officer at Panasonic Life Solutions India, said, “This initiative underscores our commitment to fostering groundbreaking technologies and solutions that address the evolving needs of commercial spaces while contributing to a sustainable future.”

The selected startups are:

• SustLabs – Based out of Mumbai, the startup was founded by Kaushik Bose in 2016. It develops consumer IoT solutions for home energy monitoring. 
• MinionLabs – The Bengaluru-based startup was launched in 2017 by Gokul Shriniva. It has developed a product for measuring individual energy consumption in buildings.
• Clairco – Founded by Aayush Jha in 2018, the startup is headquartered in Bengaluru. It develops IoT-based smart air purification and space optimisation devices.
• Enlite – Founded in 2017 by Gaurav Bali, the Mumbai-based startup provides an AI-enabled wireless building management system. 
• Zodhya – Launched in 2017 by Rohith Pallerla, the Hyderabad-based startup is a provider of energy optimisation solutions for commercial spaces.
• Living Things – Based out of Mumbai, the startup was launched by Madhusudhan Naik in 2019. It provides smart control hubs for air conditioners.
• Sensiable – Launched in 2019 by Ashish Singh, the startup is headquartered in Bengaluru. It is a provider of an IoT-enabled workplace space management solution.
• Carbon Minus – The startup was launched in 2019 in Pune by Ashok Ranfive. It is a provider of cloud-based solutions for energy plant management.
• Nebeskie – The Chennai-based startup was launched by Anik Bose in 2016. It is  a provider of a SaaS, AI & IoT-powered electricity management platform.
• Quebeq Venture – Launched in 2019 by Logesh Janarthanan, the Chennai-based startup integrates a virtual power plant with proprietary energy solutions.
• Blaze – The Hyderabad-based startup was launched in 2007 by Arjun Valluri. It integrates smart sensor-based devices and IoT to deliver cost-effective and efficient device management, connectivity management, and application enablement solutions.
• Cymbeline – Launched in 2017 by Vivek Gowripeddi, the Bengaluru-based startup develops industrial IoT with diverse hardware, middleware, analytics, and cloud.

The development comes at a time when a number of companies and VC firms have been announcing accelerator and incubation programmes for startups. 

For instance, game development major Krafton launched its incubator programme called KRAFTON India Gaming Incubator to support early stage gaming startups with primary investment and mentorship. 

Earlier this month, GVFL in partnership with Brinc and Games24x7 in partnership with the Karnataka government announced accelerator programmes.

However, according to Inc42’s Indian Tech Startup Funding Report Q3 2023, for the first three quarters of 2023, the funding in Indian startups was merely more than $7 Bn against about $22 Bn during the corresponding quarters of 2022.

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The Computer Emergency Response Team (CERT-In), the Centre’s nodal agency dealing with cyber security, has issued a high-risk security alert for four versions of Samsung phones, saying that multiple vulnerabilities have been reported in the products with certain software.

The affected software includes Samsung mobile Android versions 11, 12, 13 and 14.

“Multiple vulnerabilities have been reported in Samsung products which could allow an attacker to bypass implemented security restrictions, access sensitive information and execute arbitrary code on the targeted system,” said CERT-In in its vulnerability note.

These vulnerabilities exist due to issues such as improper access control in Knox features, issues in the facial recognition software, improper authorisation verification vulnerability in AR emoji, improper input validation vulnerability in Smart Clip, and others, said the advisory. 

“Successful exploitation of these vulnerabilities may allow an attacker to trigger heap overflow and stack-based buffer overflow, access device SIM PIN, send broadcast with elevated privilege, read sandbox data of AR emoji, bypass Knox guard lock via changing system time, access arbitrary files, gain access to sensitive information, execute arbitrary code and compromise the targeted system,” it added.

These vulnerabilities are likely to affect a range of Samsung devices, including the Galaxy S23 series, Galaxy Flip 5, and Galaxy Fold 5. 

Meanwhile, Samsung is one of the leading smartphone manufacturers in India, along with companies including Xiaomi, OPPO, OnePlus and Apple. The company has also been bolstering its position as one of the top smartphone manufacturers in the country.

As per a Canalys report, Samsung maintained its top position with a market share of 18% and a shipment of 7.9 Mn units in Q3 2023.

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The Securities Appellate Tribunal (SAT) on Wednesday (December 13) overruled an INR 7 Lakh penalty imposed by the Securities and Exchange Board of India (SEBI) on Jio Financial Services (JFS). 

The case pertained to alleged manipulation in certain trades in long-dated Nifty options between the then Reliance Strategic Investments and Morgan Stanley France SA (MSF) back in 2017. 

It is pertinent to note that parent Reliance Industries hived off its financial services arm Reliance Strategic Investments into a separate entity called JFS. 

The penalty was quashed in response to an appeal filed by the newly floated arm against an order passed by the SEBI in June this year, which slapped a penalty of INR 7 Lakh on the company.

A bench comprising Justice Tarun Agarwala and Presiding Officer Meera Swarup quashed the fine saying that the markets regulator has not considered the evidence properly.

“… To hold a simple one way trade as manipulative when it is not a circular or reversal trade and in the absence of any shred of evidence of mutual arrangement with a motive to manipulate the market, the impugned order cannot be sustained and is quashed. The appeal is allowed. In the circumstances of the case, parties shall bear their own costs,” said SAT in an order. 

At the heart of the matter are the long-dated Nifty options with various strike prices placed by the company in December 2016, expiring on December 28, 2017. Subsequently, in March 2017, SEBI’s whole-time member (WTM) passed an order that debarred RIL from dealing in equity derivatives in the Futures and Options segment. 

The WTM, however, allowed the company to square off or close out open existing positions to comply with the order. Eventually, the then RSIL, supposedly fearing the risk involved in waiting till the expiry, closed out the open positions (including 11400 PE) and other long-dated positions on the stock exchanges.

“The AO (assessing officer) further held that MSF admitted to knowing the name of the counterparty, namely, the appellant, with respect to the trades executed on August 8, 2017…. Accordingly, the AO came to a conclusion that there was a collusion and synchronization of the trades between the appellant and MSF and there was a mutual arrangement between them which was violative of Regulations 3 and 4 of the PFUTP Regulations,” read the order. 

The trades, as per SEBI’s contention, were executed at a significant discount of 23% and 25% to the fair value determined by the NSE on August 8 and August 10.

In June 2023, SEBI ruled that JFS allegedly indulged in alleged violations of Prohibition of Fraudulent and Unfair Trade Practices regulations. The order had noted that JFS engaged in ‘manipulation of the price/premium of 11400 PE’ on the said two dates. The markets regulator also slapped a penalty of INR 7 Lakh on JFS in its judgement.

Meanwhile, the SAT ruled that there was no law that barred the execution of pre-negotiated deals on the stock exchange platform. On the discount aspect, the tribunal noted that no criteria was adopted to show that a ‘certain percentage of the discount would be fair and over and above that percentage, it would be manipulative.’

“… the finding that the trades which are executed away from the theoretical value as manipulative is erroneous and without any basis…. The difference in the determination of fair value by the appellant and by NSE varies by 10%. This is because the subjective inputs were different,” added SAT. 

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Amid reports of a thaw in relations between the Indian government and Elon Musk-led automaker Tesla, the Centre on Wednesday (December 13) told the Parliament that there is no proposal to cut taxes on import of electric vehicles (EVs).

“Presently, there is no proposal either to provide exemption from local value addition cost or to provide subsidy on import duty on import of electric vehicles in India,” said minister of state (MoS) for commerce and industry Som Parkash in a written reply. 

The comments are expected to ruffle some feathers at Tesla, which is working to set up a manufacturing unit in India. As part of the company’s India plans, the Centre was said to be mulling tax sops for automakers provided they commit to eventually manufacturing EVs in India.

The statement comes close on the heels of the display of public bonhomie between union minister for commerce and industry Piyush Goyal and Musk after the former visited a Tesla factory in the US in November. 

The Indian government’s move to dish out tax incentives is largely centred on the premise of attracting global EV makers to the country and opening up the market to global competition. The development also comes nearly a week after Tata Motors reportedly urged the authorities to not lower import duties, warning of an adverse impact on local players. 

It is pertinent to note that Musk criticised the Indian government in 2021 over the high import duties and said Tesla would not manufacture in any country where it was not allowed to sell and service cars first.

However, his stance softened after Musk met Prime Minister Narendra Modi during the latter’s visit to the US this year. The Tesla chief then even said that he was “incredibly excited about the future of India”.

Tesla’s India ambitions are led by considerations around leveraging the growing EV penetration in the country and the rising demand for EVs among India’s expanding middle class. The company wants to cash in on this boom without paying hefty duties on imports that fall in the range of 70%-100% depending on the cost of the vehicle.

Meanwhile, Parkash, on Wednesday, also underlined a slew of measures taken by the government to promote the EV industry in the country and boost investments into the sector. 

“Government has also taken various steps to boost domestic and foreign investments in India to enhance local value addition under (the) Make in India initiative. These include the introduction of GST, reduction in corporate tax, improving ease of doing business, FDI policy reforms,… Phased Manufacturing Programme (PMP) and QCOs (Quality Control Orders), to name a few,” the minister said. 

He also touted the INR 25,938 Cr Production Linked Incentive (PLI) scheme for manufacturing of automobiles and auto components as well as the INR 18,100 Cr national programme on advanced chemistry cells (ACC) battery storage.

As a result, a host of global and domestic players have made a beeline for the country. Taiwanese tech major Acer recently ventured into the country’s EV market by licensing its brand to mobility startup eBikeGo.

Vietnamese electric car maker VinFast also announced plans to invest $150 Mn-$200 Mn in India to set up a completely knocked down (CKD) assembly unit. In addition, big names such as Audi and Mercedes-Benz have also ramped up India operations to grab a bigger pie of the burgeoning Indian EV ecosystem.

Meanwhile, EV registrations in the country stood at 1.43 Lakh units in November, up more than 36% year-on-year, as per Vahan data.

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Apple supplier Foxconn is reportedly planning to invest an additional INR 13,911 Cr ($1.67 Bn) in Karnataka, in a further boost to the tech giant’s plan to ramp up iPhone manufacturing across India.

Karnataka has also approved 14 projects worth INR 34,115 Cr with the potential to generate 13,308 jobs in the state. Of these, 10 are new projects worth INR 19,452.40 Cr, while the remaining four are additional ones with investments worth INR 14,662.59 Cr, according to a statement.

Foxconn had proposed to invest INR 8,000 Cr for setting up a phone manufacturing unit in the state, as revealed by the minister for large and medium industries and infrastructure development, MB Patil, at the conclusion of the 62nd meeting of the SHLCC held at Suvarna Vidhana Soudha in Belagavi.

Foxconn is also expected to start manufacturing iPhones in the state by April 2024 — a project expected to create around 50,000 jobs.

The Taiwan-based company, responsible for assembling approximately 70% of iPhones and holding the title of the world’s largest contract manufacturer, is strategically shifting its production away from China due to disruptions caused by COVID-19 and geopolitical tensions. Over the past year, Foxconn has significantly expanded its footprint in India, making substantial investments in manufacturing facilities in the southern part of the country.

This move follows Foxconn’s recent declaration of investing over $1.5 Bn in India to fulfil operational requirements.

Foxconn also aims to expand its India footprint. In September, the company announced plans to double its India employment, investment and business size in one year. 

The focus on India is not without reason. Its Indian arm clocked an annual turnover of $10 Bn at the end of the second quarter of 2023, the company said in August. 

In addition to assembling Apple’s products, the company is also planning to venture into the semiconductor and electric vehicle spaces in India. It has already partnered with French-Italian semiconductor company STMicroelectronics to start manufacturing semiconductors in India. 

The back-to-back developments come as Foxconn has sped up plans to build a $700 Mn facility on the outskirts of Bengaluru. Spanning 300 acres, the unit will be the newest production facility for the company to manufacture iPhones in the country. 

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Mukesh Ambani’s Reliance Industries Ltd (RIL) and Walt Disney Co. are in the process of finalising a non-binding term sheet for the merger of their media and entertainment operations in India.

A newly-formed subsidiary of Reliance’s Viacom18 will reportedly absorb Disney’s Star India through a share swap deal in January, as per the discussions.

The talks are on to finalise a business plan that involves an immediate capital investment of approximately $1-1.5 Bn. The ultimate shareholding structure and valuation of the entity will be determined based on the cash infusion from both Reliance and Disney.

This development was first reported by ET.

The board is anticipated to have equal representation from Reliance and Disney, with a minimum of two directors each. Bodhi Tree, led by Uday Shankar and holding the second-largest stake in Viacom18 after Reliance at 15.97%, is expected to secure a seat on the board. Additionally, the inclusion of at least two independent directors is under consideration.

Before finalising the term sheet, both parties are expected to conduct crucial meetings. Following this, an accelerated timeline is anticipated for announcing the merger, with a potential target date as early as the end of January.

Once the term sheet is agreed upon and confirmatory due diligence is completed, the official valuation process will commence. Independent valuers will be involved in determining the valuation of the merged entity.

Additionally, Disney is likely to grant a five-year exclusive subscription video-on-demand (SVOD) content license for Disney+ originals and its library content to the joint venture company.

As part of the agreement, there is expected to be a five-year lock-in period, with exceptions allowed only in the case of an IPO of the merged company. Distribution channels and access to Jio Platforms will also be made available to the joint venture on terms agreed upon by both parties. Furthermore, a list of competitors with which any engagement is prohibited will be established.

Disney acquired the entertainment assets of 21st Century Fox in 2019 for $71.3 Bn. Post the acquisition, Star India came under the aegis of Disney and Hotstar was rebranded as Disney+Hotstar.

At the time of acquisition, Star India was considered as one of Fox’s strongest businesses, and it was an important part of Disney’s plan to build its streaming business in India.

Disney+Hotstar has been struggling to retain its paid users. Banking on the love of cricket in India, the company saw its paid subscriber growth scale to a record 61.3 Mn at the end of the quarter ended September 2022. 

As JioCinema began streaming the IPL for free, Disney+ Hotstar saw subscribers leave in droves. Facing challenges in retaining paid subscribers currently, Disney+ Hotstar experienced a surge in paid user growth to a peak of 61.3 million by the end of the quarter in September 2022. However, the strategy of streaming IPL for free on JioCinema led to a significant exodus of subscribers from Disney+ Hotstar. As of July 2023, the paid user base plummeted to 40.4 Mn.

The streaming platform has been struggling to maintain its leadership position due to a combination of factors, including the absence of high-quality English content and limited variety in its offerings, contributing to the decline in subscriber numbers, while Reliance’s JioCinema is scaling up rapidly. 

Disney Star also undertook a massive internal reshuffle earlier this year. As per Disney Star, the changes will allow the company to streamline its revenue, marketing and operations functions.

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Apple supplier and US gorilla glass maker Corning Inc is reportedly investing INR 1,000 Cr to build a manufacturing facility in Tamil Nadu, which will likely mark its formal entry into India.

As per ET’s report, the factory will be set up at Pillaipakkam, near Sriperumbudur,  which will be expanded if the need arises and will employ around 300 people.

Corning will be joining hands with its Indian partner Optiemus Infracom to set up this unit.

This move also marks the formal entry of another Apple supplier into India, contributing to the growing ecosystem of the smartphone major and electronic component manufacturers in the country, the report said.

Tamil Nadu is already home to some of Apple’s major contract manufacturers, including Foxconn, Pegatron and Tata Electronics.

Earlier in September, the Telangana government said the company had decided to invest in the state. However, sources said that the company picked Tamil Nadu over Telangana because of the electronics ecosystem available in the state as well as the proximity to other Apple suppliers.

People close to the matter also told ET that talks were on for a while but the deal was finalised and sealed last week and the pact will be signed during the Global Investor’s Meet (GIM) slated for January.

“While I choose not to delve into the specifics of potential investment commitments which may be under consideration, I can affirm that Tamil Nadu is diligently crafting an outstanding electronics ecosystem of international standards,” TN industries minister TRB Rajaa told ET.

Corning is a Fortune 500 materials science company known for inventing gorilla glass, a reinforced glass widely utilised in portable devices like mobile phones, tablets and laptops.

Corning, with over 170 years of history, reported Q3 revenue of $3.2 Bn. It is a key player in the tech industry. The company pioneered glass that was thin, lightweight, damage resistant, and responsive to touch which is featured on not just Apple smartphones but other brands like Samsung, Google, Sony, OnePlus, Motorola, Mi, Oppo, Lava, Real Me and Nokia, among others.

Corning and Apple’s association dates back to 2007 when Apple approached the glass specialist about glass for its first-ever smartphone.

As per Apple’s supplier list for the fiscal year 2022, Corning has facilities that supply to Apple in Fujian, Jiangsu and Zhejiang in mainland China, Chungcheongnam-Do in South Korea, Taiwan and Kentucky and New York.

Neil Shah, vice president of Counterpoint Research, called Corning one of Apple’s ‘key’ suppliers when it came to producing durable cover glass screens for iPhones, iPads and other products.

Shah added, “On top of this cover glass will be used on millions of tablets, PCs, wearables and automotive displays going forward. This makes it a very lucrative opportunity for a company like Corning to partake and boost the Make In India supply chain as the entire ecosystem mushrooms in India.”

This comes at a time when Apple is looking to beef up its iPhone production in India to over 50 Mn units annually. The tech giant has now started reaching out to various suppliers across automotive, aerospace and consumer electronics sectors for the critical parts.

Meanwhile, Tata Electronics, a subsidiary of Tata Group, acquired Wistron’s manufacturing facility in Karnataka, entering the assembly of Apple iPhones. The group is reportedly gearing up to construct one of India’s largest iPhone assembly plants in Tamil Nadu’s Hosur.

With a continued focus on the Indian market, Apple looks to double down on production in the country as part of its efforts to reduce reliance on China. 

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Amazon Web Services (AWS) India and South Asia’s interim country head for commercial business Vaishali Kasture has quit within seven months of taking over the post from former president of commercial business Puneet Chandok.

Kasture served the global tech giant for about five years. Before her last-served position, Kasture was the head of top enterprise, mid-market, and global businesses in India and South Asia, Moneycontrol reported.

While AWS India did not respond to queries on the development, Inc42 has learnt that Kasture’s last working day would be April 1, 2024. Jaime Valles, vice president of Asia Pacific & Japan for AWS Global Sales, will continue to oversee the operations of AWS India till the company finds a replacement for Kasture.  

Kasture joined AWS as the head of AWS ISV (an accelerate programme for independent software vendors) India. She has also held several key positions in the organisation throughout her tenure. 

With a total of 25 years of experience, Kasture has worked with global organisations like L&T Financial Services, Deloitte, Goldman Sachs, Infosys, etc. 

The resignation comes at a time when AWS is working on investing INR 1.056 Lakh Cr ($12.7 Bn) in India by 2030 to upgrade and scale up cloud infrastructure in the country to meet the growing demand. 

Its investment in the data centre infrastructure is expected to support around 1.32 Lakh full-time equivalent (FTE) jobs in construction, facility maintenance, engineering, telecommunications, etc.

In India, AWS operates two data centres in Mumbai and Hyderabad. To build the centres, AWS invested $1 Bn in the Mumbai region, while it spent $2.7 Bn in Hyderabad. 

The company estimated that between 2016 and 2022, it contributed more than INR 38,200 Cr ($4.6 Bn) to India’s GDP, meanwhile supporting approximately 39,500 FTE jobs annually in Indian businesses.

In June this year, Chandok resigned from AWS. He was then roped in by Microsoft as its corporate vice president for its India and South Asia businesses in August. This was followed by the resignation of Microsoft India’s former president Anant Maheshwari in July.

Update: December 13, 8:15 PM | The story has been edited to add details about Kasture’s last day and Valles overseeing the operations of AWS India till the appointment of a replacement. 

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In the wake of Apple reportedly scouting for Indian, Japanese and South Korean suppliers who can provide critical components to its contract manufacturers in India amid reports that the global smartphone major is looking to beef up its iPhone production in the country to over 50 Mn units annually, the company has now started reaching out to various suppliers across automotive, aerospace, and consumer electronics sectors for the critical parts.

As per Mint’s report, Apple is reaching out to these above-mentioned sectors to explore potential supplier arrangements across multiple product categories.

Apple is in preliminary talks with potential suppliers capable of custom-designing and producing parts and machinery for original equipment manufacturers (OEMs), as well as those who currently act as contract manufacturers for several global firms.

Several suppliers have already begun investing in new capabilities, machinery and equipment, positioning themselves as potential suppliers to Apple pending an extensive cycle of certification and approvals, according to Mint. 

Apple aims to diversify its operations in India, which has been predominantly concentrated in China.

According to an Economic Times report, the tech giant is looking for equipment like batteries, camera lens, chargers and others required to make its flagship iPhones and iPads in India. 

This comes at a time when the Indian government has delayed approvals to import such above-mentioned equipment from the existing suppliers, majorly of Chinese origin. 

In January, nearly 17 Chinese companies that supply components for Apple devices, applied for clearances to set up manufacturing facilities in India, which have been put on hold by the government.

Of the suppliers, Sunny Optical Technology Group and Han’s Laser Technology Industry Group are camera lens makers, Luxshare-ICT is airpod maker and ON Semiconductor Shenzhen China is a capacitor chip maker. 

“They are definitely scouting quality suppliers with different portfolios and parts. They have to find the ecosystem to be good, and pricing and capability to be right to make firm decisions. Right now, various teams in Apple are holding conversations directly with vendors, including at the Tier 2 and Tier 3 level,” Mint reported, citing people close to the matter.

Apple’s conversations with these suppliers go beyond the iPhone and include laptops and PCs. However, sources indicate that while Apple will be keen on localising its Macbooks in India in the backdrop of a strict government stance on reducing laptop imports to foster domestic value addition, such a move could be at least two years away. 

This development comes at a time when Tata Electronics, a subsidiary of Tata Group, acquired Wistron’s manufacturing facility in Karnataka, entering the assembly of Apple iPhones. Tata Group is reportedly gearing up to construct one of India’s largest iPhone assembly plants in Tamil Nadu’s Hosur.

Since 2018-19, Apple has increasingly concentrated on iPhone manufacturing in India. Production, which stood at INR 16,750 Cr in 2020-21, has witnessed a remarkable surge to INR 60,000 Cr in just seven months of the current fiscal year.

For FY23, Apple India reported a year-end turnover of INR 49,321 Cr. However, this figure represents only 1.5% of Apple’s global turnover, which amounts to a substantial INR 32.6 Lakh Cr ($383.93 Bn).

With a continued focus on the Indian market, Apple aims to achieve a significant milestone by manufacturing more than 50 Mn iPhones in India by March 2024, as it looks to double down on production in the country as part of its efforts to reduce reliance on China. 

Apple’s business in India has been a matter of discussion for some time now. Earlier in April, the Cupertino-based company was reported to be producing about 7% of its iPhones in India now, as against a mere 1% in 2021. In fact, of the iPhones produced in India last fiscal year, $5 Bn worth of smartphones were exported, the report said citing sources.

However, Apple recently said that the production of iPhones in India may be impacted if India mandates the European Union law about universal charging points for all smartphones. Though other smartphone makers including Samsung have agreed to comply with India’s plan, Apple is resisting the move.

Yet another brief tension between the Indian government and the smartphone maker broke out when members of Parliament from the opposition party claimed that they received alerts on their iPhones against state sponsored attackers. 

The post Apple Explores Indian Suppliers Across Auto, Aerospace And Consumer Electronics For Parts appeared first on Inc42 Media.

Global smartphone major Apple is reportedly planning to manufacture more than 50 Mn iPhones in India annually, as it looks to double down on production in the country as part of its efforts to reduce reliance on China.

Apple aims to meet the target within the next two to three years, with additional tens of millions of units planned to be produced in the following years, the Wall Street Journal reported.

This comes at a time when the tech giant is scouting for Indian, Japanese and South Korean suppliers which can provide critical components to its contract manufacturers in India. 

According to an Economic Times report, Apple is looking for equipment like batteries, camera lens, chargers and others required to make its flagship iPhones and iPads in India. 

This comes after the Indian government delayed approvals to import above-mentioned equipment from the existing suppliers, majorly of Chinese origin. 

In January, nearly 17 Chinese companies that supply components for Apple devices applied for clearances to set up manufacturing facilities in India, which have been put on hold by the government.

Of the suppliers, Sunny Optical Technology Group and Han’s Laser Technology Industry Group are camera lens makers, Luxshare-ICT is airpod maker and ON Semiconductor Shenzhen China is a capacitor chip maker. 

A separate Bloomberg report on Friday (December 8) said that Tata Group is reportedly planning to set up one of the largest  iPhone assembly plant in Tamil Nadu’s Hosur. The new facility by Tata is expected to house about 20 assembly lines and employ 50,000 workers within the next two years. 

Last month, ET reported that Apple plans to produce iPhones worth INR 1 Lakh Cr in India by the end of March 2024. The tech giant has already scaled up manufacturing capacity, achieving production of over INR 60,000 Cr during the first seven months of the fiscal year. 

Apple’s business in India has been a matter of discussion for some time now. Earlier in April, the Cupertino-based company was reported to be producing about 7% of its iPhones in India now, as against a mere 1% in 2021. In fact, of the iPhones produced in India last fiscal year, $5 Bn worth of smartphones were exported, the report said citing sources.

However, Apple recently said that the production of iPhones in India may be impacted if India mandates the European Union law about universal charging points for all smartphones. Though other smartphone makers including Samsung have agreed to comply with India’s plan, Apple is resisting the move.

Yet another brief tension between the Indian government and the smartphone maker broke out when members of Parliament from the opposition party claimed that they received alerts on their iPhones against state sponsored attackers. 

The post Apple Aims To Ramp Up iPhone Production In India To Over 50 Mn Units Annually appeared first on Inc42 Media.

Salt-to-software conglomerate Tata Group is reportedly gearing up to build one of India’s largest iPhone assembly plants in Tamil Nadu’s Hosur, tapping Apple Inc’s aim to broaden its manufacturing presence in the country. 

The facility is expected to house approximately 20 assembly lines and aims to create job opportunities for around 50,000 workers within the next two years, Bloomberg reported, citing sources close to the matter.

They also added that the site is anticipated to become operational within the next 12-18 months.

The report further said that the upcoming plant will strengthen Apple’s commitment to localising its supply chain and fostering closer collaboration with Tata. 

Currently, the Indian conglomerate manages an iPhone manufacturing unit acquired from Wistron Corp. in Karnataka. Tata Group successfully acquired Wistron’s manufacturing facility in Karnataka in October, signalling its entry into the assembly of Apple iPhones.

This shift in the manufacturing base aligns with Apple’s broader strategy to diversify operations beyond China by cultivating partnerships across India, Thailand, Malaysia and other regions.

Tata has actively engaged in its partnership with the Silicon Valley giant, expanding its operations beyond traditional sectors, ranging from salt to software, as highlighted in the report. 

The group has increased employment at its existing Hosur facility, focusing on the production of iPhone enclosures. Additionally, there are plans to introduce 100 retail outlets exclusively dedicated to Apple products. Concurrently, Apple has taken steps to establish two stores in India, with plans for three more in the pipeline.

Tata Group has been a part of iPhone assembly as it manufactures the metal body at its Tamil Nadu plant and it aims to enter the entire assembly business. 

Earlier in May, it was reported that Wistron was planning to wind up its business in India and sell its Bengaluru plant to the Tata Group. 

Meanwhile, Prime Minister Narendra Modi’s production-linked incentives (PLIs) have incentivised key suppliers of Apple, such as Foxconn Technology Group and Pegatron Corp, to expand their presence in India. 

This surge surpassed $7 Bn in the previous fiscal year, accounting for about 7% of the global production share of the device.

The forthcoming plant is expected to be a mid-sized facility among Apple’s global iPhone manufacturing centres. While it is projected to surpass the scale of Tata’s acquired Wistron plant, which employs over 10,000 individuals, it will still be smaller than Foxconn’s substantial manufacturing hubs in China, each employing hundreds of thousands.

The development comes at a time when Apple is rapidly ramping up manufacturing in India amid geopolitical tensions between Beijing and Washington. India now accounts for about 7% of total iPhones produced globally. 

Apple started ramping up production in India in 2021 amid disruptions in its supply chain due to the COVID-19 pandemic restriction in China and rising tensions between Beijing and Washington. 

In India, Apple’s vendor ecosystem has witnessed several developments. 

In December, Foxconn said its India arm Bharat FIH will invest INR 400 Cr ($48 Mn) in the company’s wholly-owned India subsidiary Rising Stars Hi-Tech. Earlier, Foxconn said it would invest more than $1.5 Bn in India to meet the operational needs. 

In October, Tata Group bought an iPhone manufacturing unit of the Taiwanese firm Wistron for $125 Mn. Tata acquired the Karnataka plant of Wistron, which employs about 10,000 people, to assemble the iPhone 14. The salt-to-software conglomerate wants to expand its Tamil Nadu unit’s production capacity.

The post Tata Plans For Largest iPhone Assembly Unit To Push Apple’s India Production appeared first on Inc42 Media.

US tech giant Apple has told India that its local production targets could be impacted if New Delhi follows the European Union in mandating universal charging ports for existing iPhones, a government document shows as the company seeks an exemption or delay, Reuters reported.

India is looking to adopt the European Union rule, requiring smartphones to have a universal USB-C charging port. Discussions with manufacturers are ongoing to implement this requirement in India by June 2025, six months after the EU’s deadline. 

While all manufacturers, including Samsung, have agreed to comply with India’s plan, Apple is resisting the move.

This also comes at a time when Apple is scouting for Indian, Japanese and South Korean suppliers which can provide critical components to its contract manufacturers in India. 

The US tech giant has for years offered a unique lightning connector port on its iPhones. The EU, however, estimates a single charger solution would save about $271 Mn for consumers, and India has said the move will reduce e-waste and help users.

In a confidential meeting on November 28 led by India’s IT ministry, Apple requested an exemption for current iPhone models from new regulations. The tech giant warned that adherence could hinder meeting production targets outlined in India’s production-linked incentive (PLI) scheme. 

The PLI scheme provides fiscal incentives to electronic manufacturers in India for new investments and annual increases in phone sales. 

India is seen as Apple’s next growth frontier after China. Analyst Ming-Chi Kuo predicts that 12-14% of iPhone production in 2023 will be in India, with a potential increase to 25% next year. Apple’s market share in India’s smartphone market has grown from 2% to 6% in four years. 

Currently, only the iPhone 15 has the new universal charging port. Apple told Indian officials in the meeting that the “design of the earlier products cannot be changed,” the document showed.

Apple presently manufactures several iPhone models, including the latest iPhone 15, in India. There are plans to commence AirPods production next year, although it remains uncertain if iPads or MacBooks will be manufactured in the country. 

The Cupertino-based company has expanded its production capacity in India through key contract manufacturers such as Foxconn, Wistron, and Pegatron, reflecting a broader strategy to enhance iPhone production and potentially include other Apple products.

Apple is planning to ramp up production by more than five times the current levels to around $40 Bn by 2027.

The tech giant has already scaled up capacity to achieve over INR 60,000 Cr in production during the first seven months of the fiscal year. It further aims to produce iPhones worth INR 1 Lakh Cr in India by the end of March 2024.

Apple’s India business recorded a revenue of INR 49.3K Cr (almost $6 Bn) in FY23, marking an increase of 48% from INR 33.3K Cr ($4.03 Bn) in FY22.

The post Apple Says India’s Adoption Of EU-Style Charger Rules Will Impact Local Production Targets appeared first on Inc42 Media.

Global smartphone major Apple is reportedly scouting for Indian, Japanese and South Korean suppliers which can provide critical components to its contract manufacturers in India. 

According to an Economic Times report, the tech giant is looking for equipment like batteries, camera lens, chargers and others required to make its flagship iPhones and iPads in India. 

This comes at a time when the Indian government has delayed approvals to import such above-mentioned equipment from the existing suppliers, majorly of Chinese origin. 

In January, nearly 17 Chinese companies that supply components for Apple devices, applied for clearances to set up manufacturing facilities in India, which have been put on hold by the government.

Of the suppliers, Sunny Optical Technology Group and Han’s Laser Technology Industry Group are camera lens makers, Luxshare-ICT is airpod maker and ON Semiconductor Shenzhen China is a capacitor chip maker. 

“The approvals (in January) were only initial approvals. Because most of these companies have Chinese origin, national security is also an issue. Those approvals have to be carefully given. Issues of environmental clearances, which are a state subject, are given by expert committees,” a senior government official told ET.

According to the publication’s source, Luxshare-ICT moved its manufacturing unit to Vietnam due to the delay in approval from the Indian government. However, government officials reported that not all the applications have been turned down. Some may be approved post careful consideration. 

Recently, Japan’s TDK Corporation was reported to be planning to set up its lithium-ion (Li-ion) battery manufacturing unit in India for producing iPhone’s battery indigenously. Reports also surfaced that the company will set up the 180-acre facility in Haryana’s Manesar,  and the manufactured cells will be supplied to Sunwoda Electronics, Apple’s Li-ion battery assembler, which imports cells from various global markets.

For some time now, Apple has been making several headlines in India. Some members of the Parliament have flagged security concerns over the use of iPhones, following which the government has firmed up against the tech giant about its privacy issues. 

In November, Inc42 reported that Apple’s cybersecurity executives from the US are expected to meet officials of CERT-In, the Indian government’s nodal agency on computer security, in connection with the show cause notice issued to the tech giant after several opposition leaders alleged warning notification on their iPhones. 

However, the company continues to pave the way for its ambitious plans around India. It said that it is aiming to produce iPhones worth INR 1 Lakh Cr in India by the end of March 2024. 

The post Apple Scouts For New Suppliers For Critical Components In India appeared first on Inc42 Media.

Taiwan’s Foxconn and Pegatron have stalled production of Apple iPhones at their facilities near Chennai due to heavy showers triggered by cyclone Michaung, Reuters reported, citing sources close to the matter.

The torrential downpour impacted the city’s major electronics and manufacturing hub, cars lay submerged and prompted the closure of the airport.

Foxconn has expanded its presence in India, investing in manufacturing facilities in the south, aligning with Apple’s strategy to diversify production beyond China.

In the quarter ending September, Apple achieved its highest-ever quarterly shipments from India, exceeding 2.5 Mn units, according to data from market analytics firm Counterpoint Research.

With around 35,000 employees at its Tamil Nadu iPhone factory, Foxconn is considering resuming production on Tuesday (December 5).

Pegatron is experiencing its second factory closure in recent months, with a previous interruption in iPhone assembly due to a fire in September. 

Following the fire incident, Pegatron temporarily suspended iPhone assembly operations. 

Contract manufacturer Pegatron is currently in talks to establish a second manufacturing facility in India for assembling the ‘latest iPhones.’ 

This aligns with the ongoing trend among Apple’s contract manufacturers, including Wistron and Foxconn, who are investing significantly in India to expand their production capabilities. 

Pegatron currently accounts for about 10% of Apple’s annual iPhone production in India, according to Counterpoint.

Cyclone Michaung is set to make its landfall on the southern coast of Andhra Pradesh on Tuesday morning (December 5), as per the country’s weather office. The cyclone is anticipated to bring sustained winds ranging from 90-100 kph (56-62 mph), with gusts reaching up to 110 kph.

Recently, Foxconn’s Indian arm, Foxconn Hon Hai Technology India Mega Development, allocated an additional $1.6 Bn (INR 12,820 Cr) for its construction projects. 

The move largely aligns with the company’s plans to diversify its production outside of China amid ongoing tensions between Beijing and Washington. 

The back-to-back developments come as Foxconn has sped up plans to build a $700 Mn facility on the outskirts of Bengaluru, spanning 300 acres, set to become the latest iPhone manufacturing hub in India. 

Foxconn has set an ambitious target to double its India employment, investment and business size in one year.

The company also allocated an additional $600 Mn for two facilities in Karnataka. Foxconn’s focus on India is evident from its Indian arm achieving a $10 Bn annual turnover by Q2 2023, showcasing significant growth in revenue, employees, and investments. 

India is positioned as Foxconn’s potential third global hub for electric vehicle contract manufacturing, targeting 500K-700K EVs by 2025. Additionally, Foxconn aims to expand its Apple product lineup and increase production in India.

The post Cyclone Michaung-Triggered Heavy Rains Force Foxconn, Pegatron To Stall iPhone Production In Chennai appeared first on Inc42 Media.

In yet another move by Apple to prop up its manufacturing in India, the Cupertino-based tech giant is bringing its global lithium-ion (Li-ion) battery manufacturer, TDK Corporation, to India.

The leading electronic component and device maker from Japan will manufacture the cells for batteries in India to power the iPhones assembled in the country, sources aware of the development told Business Standard. The manufactured cells will be supplied to Sunwoda Electronics, Apple’s Li-ion battery assembler, which imports cells from various global markets.

TDK Corporation will set up a 180-acre facility in Manesar, Haryana, to manufacture the said cells for iPhone batteries. The facility will be of the same design as Apple’s other megafactories in China, where workers’ residential quarters are built alongside the manufacturing plants. The plant is expected to start manufacturing cells within the next 12–18 months.

According to estimates, TDK controls more than 60% of the global market for Li-ion battery cells used in mobile phones, laptops, and tablets, among others. The Japanese company established a unit to manufacture Li-ion battery cells after it acquired Hong Kong-based Amperex Technology in 2005. 

As per the report, the contract with Apple could result in the creation of 8,000–10,000 direct jobs and over 25,000 indirect jobs.

Rajeev Chandrasekhar, the minister of state for electronics and IT, confirmed the development in a post on X. “TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for batteries which will be used in #MadeInIndia iPhones,” the minister wrote.

The development comes months after Fumio Sashida, corporate officer and part of the leadership team of TDK Corporation, was in India in mid-October, when he met top officials of the Ministry of Electronics and Information Technology (MeitY) to discuss the deal.

Currently, Apple imports battery cells from China to assemble iPhones in India. According to industry estimates, device makers in India pay up to INR 25,500 Cr in foreign exchange each year to import the cells.

As such, the Cupertino-based tech giant sees value in increasing iPhones’ domestic value addition (DVA) via local cell manufacturing. For context, these cells account for 70% of the cost of the Li-ion battery. While the Li-ion battery accounts for 4% of the DVA on the iPhone, the cells account for 3%. Currently, the overall value addition of iPhones assembled in India ranges between 12% and 15%, depending on the model.

The development comes weeks after the Tata Group bought an iPhone manufacturing unit of the Taiwanese firm Wistron for $125 Mn. Tata acquired the Karnataka plant of Wistron, which employs about 10,000 people, to assemble the iPhone 14. The salt-to-software conglomerate wants to expand its Tamil Nadu unit’s production capacity.

Apple started ramping up production in India in 2021 amid disruptions in its supply chain due to the COVID-19 pandemic restriction in China and rising tensions between Beijing and Washington. 

Since then, India has rapidly emerged as an important part of Apple’s global supply chain, accounting for around 7% of total iPhones produced globally. Besides, India is also an important market for Apple. Recently, Apple CEO Tim Cook called India an ‘exciting market’ during its latest earnings call.

“We had an all-time revenue record in India. We grew very strong double-digits. It’s an incredibly exciting market for us and a major focus of ours. We have low share in a large market, and so it would seem there’s a lot of headroom there,” Cook said during Apple’s Q4 2023 earnings call.

The post Japan’s TDK Corporation To Set Up Plant In India To Manufacture Batteries For iPhones appeared first on Inc42 Media.

It’s not every day that one gets to listen to the stories of entrepreneurs who carved a niche for themselves in a sector highly dominated by either unorganised or legacy giants. Well, the entrepreneurial journey of Vijender Reddy Muthyala and Manas Ranjan Hota, the founders of Bengaluru-based watertech startup, DrinkPrime starts with a similar hook and an epiphany, of course, one of the most common ingredients in the story of any entrepreneur.

Founded in 2016, DrinkPrime provides subscription-based water purification services to Indian households at costs as low as INR 333 a month, installation and maintenance included. The startup’s RO machines come loaded with IoT tech and are customised to cater to the water purification needs of families living in different localities. 

Since its inception, the startup has raised more than INR 70 Cr from the likes of Venture Catalysts++, PeakXV and Omidyar Network which reflects investors’ trust in the founders’ business model.   

 Interestingly, had it not been for the water-scarce city of Bengaluru and their daily struggle to find safe drinking water, Muthyala would still be working as a software developer and Hota as a marketing professional. But destiny had different plans for them.

The story of the duo’s entrepreneurial journey starts with their heavy reliance on plastic drinking water cans. While they were not alone in lamenting about the quality of water they had been exposing their bodies to for quite a long time, they were surely the ones who stood up to bring about change.

The Genesis Of DrinkPrime

Interestingly, DrinkPrime did not come into existence right away. Before its launch, the founders floated an app, Waterwala, to deliver drinking water cans to people. This small-time gig helped the founders study the market closely and comprehend what had yet to be done in a bid to provide access to safe drinking water to families. 

But much had yet to be done, as the idea of a more scalable solution to address this challenge kept them awake at night. However, much to everyone’s chagrin, the issue was grimmer than the founders’ anticipation. This is because the water quality varied area-wise, which also meant different contamination levels to deal with and the one-size-fits-all approach would hardly be of any value if they truly wanted to bring change.  

The duo then decided to offer subscription-based customisable water purifiers, leading to the incorporation of DrinkPrime. But as they were still in their nascent stages, they knew that investor funding was not an option for them at the outset.

Therefore, as they say, “Innovation is the hallmark of entrepreneurship,” the founders got into revenue-sharing agreements with water purifier manufacturers. 

Under this regime, the duo saved themselves from incurring upfront manufacturing costs, a strategy that worked as a major growth catalyst for their newly formed venture. 

Today, the founders claim to be EBITDA positive, with the startup catering to more than 1 Lakh Indian households, several hospitals, corporations and schools like Government Higher Primary School, Bidaraguppe, YMC Kayaking Training Centre and Government Lower Primary School, Suggatta.

“We found that many brands used technical terms and technicalities of water purifiers to sell their purifiers, which confuses buyers. But we kept it simple. Our marketing has been all about promising safe drinking water,” Hota said, underlining the core principle of DrinkPrime’s marketing strategy that has helped the startup scale so far.

DrinkPrime’s Hi-Tech Water 

The startup’s water purifiers not only offer a seven-stage filtration process but also come with several tech-loaded features. DrinkPrime claims to reduce germs in drinking water while preserving essential minerals. Users can also monitor water quality with the help of the DrinkPrime app.

DrinkPrime’s purifiers are IoT-enabled and employ data analytics to continuously monitor and maintain water quality, all while enhancing user experience. The startup gathers water quality data on parameters like pH levels, total dissolved solids (TDS) and water hardness from different areas. This helps the startup understand the specific purification needs of each area.

The startup’s mobile app is a significant part of its service, as it simplifies the process of renting and managing water purifiers. The app allows users to recharge purifiers, track water usage, and renew or cancel subscription plans. It also enables direct communication with the support team, ensuring users receive prompt free-of-cost assistance.

DrinkPrime also uses analytics to gain insights into improving services and maintaining water quality. It incorporates customer feedback around the clock to improve its services.

Meanwhile, on the support end, DrinkPrime has employed a ticketing system. Subscribers raise inquiries or concerns on the app, enabling its support team to respond swiftly. 

Providing Access To Affordable Clean & Safe Drinking Water 

DrinkPrime’s value proposition lies in its pricing strategy. It offers purified water with zero purchase, installation and maintenance costs. In contrast, other similar-quality purifiers can cost more than INR 20K, excluding installation and annual maintenance between INR 4K and 5K. 

According to the founders, DrinkPrime stands out as the more affordable choice for users, as the company does not charge even a single penny over and above its subscription cost. 

“We have crafted well-researched subscription models under which users pay as per their consumption needs. For instance, solo consumers can take a yearly subscription for INR 4K, giving access to 1,500 L of purified water. While a family of more than four can opt for the unlimited supply of purified water for INR 6,400 L,” Hota said, adding that the startup currently has four subscription plans in place.

DrinkPrime’s Future Roadmap  

The founders told Inc42 that they approached Venture Catalysts++ in 2022, as the investment firm has a proven track record of supporting successful companies. 

“The investors liked our business model and went beyond offering just financial aid. The mentorship and strategic insights have helped us sharpen our business strategies and effectively navigate challenges,” the founders said.

With the ongoing support from Venture Catalysts++, the founders plan to expand their footprint to new geographies. Currently operational in seven cities, including Delhi-NCR, Mumbai and Bengaluru, the startup is also running a CSR campaign, #DonatewithDrinkPrime, under which it is providing safe drinking water to over 750 students in Bengaluru’s government schools.

“Moreover, we plan to diversify our offerings to cater to a broader audience,” said Hota. To do this the founders said that they aim to launch water purifiers that could dispense sparkling water or get you a glass of water as per your desired temperature. In the near term, the startup also plans to offer vitamin and protein-based drinks.

According to the founders, this is the right time to make waves in the industry as the investor sentiment is currently ripe towards the Indian water tech space, with quite noteworthy innovation happening in the sector.

It is pertinent to mention that DrinkPrime competes with the likes of Swajal, OwO, OCEO, Livpure, et al. to tackle the challenge of water contamination across India. 

“Investors recognise the potential for innovation in addressing this widespread issue. They understand that the major growth drivers for this sector are tech innovations and people’s growing awareness of having access to clean and drinking water, which is also increasingly becoming a basic human need,” the founders said, adding that only 10% of Indians today have access to water purifiers, which makes for a huge white space to be filled in a country where clean drinking water is just another pressing issue. 

According to a 2021 report, freshwater resources, vital for the survival of humans, are deteriorating rapidly due to increasing pollution and contamination and disappearing at an alarming rate due to human interventions. Not just this, waterborne diseases affect millions annually, causing serious illness and even death.

Another report, published by the Telegraph in 2022, highlighted the Centre for Science and Environment (CSE) data, which revealed concerning levels of at least one heavy metal that is deemed toxic to human health in the waters of 117 rivers of India.

In the larger scheme of things, startups like DrinkPrime, incorporated to solve real-world problems, seem well-poised to grow in the long run. Some of the factors that will play a crucial role in their success will be investors’ trust, cheaper solutions, and tech innovation.  

In addition, other things that constantly peeved the two were inconsistent deliveries, unhygienic containers and unreliable water suppliers – and this was besides the questionable water quality that they, and many others like them, were exposed to.     

The household drinking water segment was crying a disruption — for there wasn’t even a single startup that was offering access to safe and affordable clean water solutions to the masses back in 2016 , the founders reminisced. 

“This got us thinking about how to eliminate the reliance on harmful plastic cans for drinking water, which usually remain exposed to the Sun, resulting in water getting contaminated with microplastics,” Hota said. 

That was the time when the duo decided to get their hands dirty and synergised to provide safe drinking water to families heavily reliant on plastic cans. According to the cofounders, at the time when they were still fidgeting with the idea of floating their startup, less than 10% of Indians owned water purifiers.   

At this first beacon of opportunity, the duo decided to take the leap of entrepreneurial faith, committed to the intent of providing safe drinking water to many like them.

The post Here’s How DrinkPrime Is Quenching The Thirst Of Indians For Safe Drinking Water appeared first on Inc42 Media.

Global retail giant Walmart, which owns Flipkart and PhonePe, is exporting more goods from India as the company looks to reduce its dependence on China and diversify its supply chain amid ongoing tensions between Washington and Beijing.

Citing data firm Import Yeti’s numbers, Reuters reported that Walmart’s imports in the US from India stood at around 25% between January and August this year as against just 2% in 2018. While China still accounted for 60% of Walmart’s imports during the period under review, it was a sharp decline compared to 80% in 2018.

“We want the best prices. That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials,” the news agency quoted Andrea Albright, Walmart’s executive vice president of sourcing, as saying. 

However, Walmart said the data does not necessarily mean it is reducing reliance on any country as a sourcing market. The company said it is actively working on increasing the manufacturing capacity and India has played a crucial role in it.

Walmart is exporting goods ranging from toys and electronics to bicycles and pharmaceuticals to the US from India, Albright said.

Walmart, which started sourcing from India in 2002, currently employs 1,00,000 people in India, including temporary workers spread across several offices under its Walmart Global Tech India unit, Flipkart Group, PhonePe and sourcing operations.

Earlier this year, talking about the India goals of the retail major, CEO Doug McMillon said that Walmart is committed to importing Indian goods worth $10 Bn each year by 2027. He added that the company is looking at building partnerships with suppliers and partners, including small and medium enterprises in the country.

The retail major expanded its presence in India in 2018 with the acquisition of 77% stake in ecommerce major Flipkart for $16 Bn. It also spent $3.5 Bn during the six months ended July 31, 2023, to acquire Flipkart shares from non-controlling stakeholders, including Tiger Global and Accel. 

Meanwhile, Walmart’s rival Amazon claims to have facilitated exports worth $8 Bn so far from India and is now looking at increasing this number to $20 Bn.

The post Walmart’s Exports From India On The Rise As It Looks To Reduce Reliance On China appeared first on Inc42 Media.

Beer brand Bira 91’s parent B9 Beverages Ltd has appointed former SoftBank India head Manoj Kohli and Khaitan & Co. partner Bharat Anand as independent directors to its board. 

Bira91 said it expects to leverage the significant global business experience of the new appointees as it expands its business in India and overseas, as well as strengthen its corporate governance. 

Kohli, who was also the former MD and CEO of Bharti Airtel, helped guide SoftBank’s portfolio startups such as Ola, Paytm, Lenskart, Snapdeal and WeWork, Bira91 said in a statement. He currently serves on the board of prominent companies, including WeWork India and Triveni Engineering, and is a senior advisor for Deloitte India and Masters’ Union.

On the other hand, Anand is a corporate lawyer and serves as the partner and office head at Khaitan & Co. Additionally, he is serving as a member on the national executive committee of FICCI and as a member of CII’s Committee on Transparency and Governance. 

Commenting on the new appointments, Bira91’s founder and CEO Ankur Jain said, “We are at an important inflection point as a business, and as we continue on our journey of high growth, we would want to ensure that we develop a business that has long-term sustainability, improved risk management and increased quality of corporate governance. With Manoj’s and Bharat’s experience, I am sure we will be able to strengthen Bira 91 considerably on these aspects.”

The move is likely a part of Bira91’s bid to strengthen its board with an eye on going public. Last year, the startup turned into a public entity. 

Founded in 2015 by Ankur Jain, Bira 91 claims to sell its beer across 550 towns and cities, spanning over 18 countries. The startup claims to be the fourth-largest beer company in India.

Backed by Kirin Holdings, MUFG Bank, Sofina of Belgium, and Peak XV Partners, Bira91 acquired  The Beer Cafe last year. In March, it raised $10 Mn funding from MUFG. 

Its net loss rose 12% to INR 445.4 Cr in FY23 from INR 396 Cr in the previous fiscal year, while operating revenue grew 15% year-on-year to INR 824.3 Cr.

The post Bira91 Appoints Ex-SoftBank India Head Manoj Kohli, Bharat Anand As Board Members appeared first on Inc42 Media.

IPO-bound SaaS startup Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services.

This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

Unicommerce was launched by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015.

The startup enables end-to-end management of ecommerce operations for D2C brands, retail companies, and other online sellers through its comprehensive suite of SaaS-based technology products.

Unicommerce’s platform keeps track of stocks across multiple warehouses, keeps inventory information updated across multiple sales channels (both offline & online) and automates order pick-ups to support faster and more accurate deliveries.

The startup generates revenue by selling its SaaS solutions. Including other income, its total revenue stood at INR 92.9 Cr in FY23 as against INR 61.3 Cr in the previous fiscal year.

Where Did Unicommerce Spend?

The startup’s overall expense rose 55% to INR 84.1 Cr in FY23 from INR 54.4 Cr in the previous fiscal year.

Employee Costs The Biggest Expense: Being a SaaS startup, Unicommerce’s biggest expenditure is salary costs. In FY23, its employee benefit expenses stood at INR 62 Cr and accounted for 73% of the total expenditure. Unicommerce spent INR 42.3 Cr on employee costs in FY22, 47% lower than the number for FY23.

Advertising Expenses Rise: Unicommerce spent INR 3.9 Cr on advertising and promotional activities, an increase of 50% from INR 2.6 Cr in the previous fiscal year.

Server Cost: Server hosting cost increased 39% to INR 5.4 Cr from INR 3.28 Cr in FY22.

Besides India, Unicommerce also has operations in six other countries – including Indonesia, Philippines, Singapore, Malaysia, the UAE and Saudi Arabia. Its income from international operations more than tripled and accounted for 2.7% of its operating revenue during FY23. 

The startup counts the likes of Edamama, RedTag, RSA Global, and Airspeed among its clients.

Unicommerce is reportedly eyeing a public listing next year. Its parent entity AceVector Limited, which also owns Snapdeal, has tapped investment firm CLSA to manage its book-building process.

It must be noted that Snapdeal also filed its IPO papers with markets regulator SEBI in 2021, but later shelved its public listing plans amid weak investor sentiment due to global economic slowdown.

The post IPO-Bound Unicommerce Posts INR 6.4 Cr Profit In FY23, Revenue Nears INR 100 Cr Mark appeared first on Inc42 Media.

Elon Musk-led US electric car maker Tesla is reportedly looking to make a $2 Bn investment in India for setting up a local factory in the country, only if the government approves a concessional duty of 15% on its imported vehicles during the first two years.

Tesla has approached the government with a detailed proposal, reflecting the link between the quantum of investment to the number of cars it can import at lower duty. 

According to an Economic Times report, the company may be willing to invest up to $500 Mn, if India extends a concession on tariff for 12,000 cars, and may increase the investment to $2 Bn if the concession is applied for 30,000 cars. 

Tesla also said that it may commit to localise up to 20% of the value of made-in-India cars in 2 years and increase that to 40% in 4 years.

Government officials are examining the proposal’s viability of the upper limit of $2 Bn. Also, government officials aware of the matter said that it is considering a reduction in the number of cars mentioned in the proposal for concession, and considering whether a concessional tariff can be imposed on 10% of the total EVs projected to be sold in India during this financial year, and can be increased by 20% for the next fiscal.

According to the government, around 50,000 EVs were sold in FY23 which is expected to go up to 1,00,000 units by the end of FY24. 

Previously, the EV giant and the government were reported to be closing agreement soon to start the operation of Tesla in India 2024 onwards. Though further details of the deal were not disclosed, the final announcement is likely to be made at the upcoming Vibrant Gujarat Global Summit in January 2024. 

Reportedly, the company will roll out Model Y crossover in India, as their first car model in the country. Further, strengthening its position in India, the car maker is likely to double the import of car components from the country.

The post Tesla Ready For $2 Bn Infusion Into India Factory, But Only On ‘Lowered Import Duty’ appeared first on Inc42 Media.

Apple’s cybersecurity executives from the US are expected to meet officials of CERT-In, the Indian government’s nodal agency on computer security, this month in connection with the show cause notice issued to the tech giant after several opposition leaders alleged warning notification on their iPhones. 

Last month, several opposition MPs reported receiving an alert from Apple about “state-sponsored attackers” trying to remotely compromise their iPhones, alleging government hacking. Following this, CERT-In issued a show cause notice to Apple related to the matter.

On Friday (November 24) Minister of State for Electronics and Information Technology (Meity) Rajeev Chandrasekhar said that Apple has to reply to the notice which needs to be done by their global cyber security team.

“They have to come here and answer those questions. Basic issue is ongoing,” the minister told reporters.

He further said CERT-In had met with a local representative from Apple. However, “the issue is beyond their capability to address”.

“It is their cyber security people who have to come and meet CERT-In and they will come all the way from the US,” the minister said.

When questioned about the deadline for Apple to submit its response, the minister expressed uncertainty about the dates but expects the team to meet CERT-In officials sometime this month. 

A Meity official mentioned that the Apple cybersecurity team plans to visit this month, contingent on timely visa issuance.

Notably, MPs who received the warning notification on their iPhones include Congress Chief Mallikarjun Kharge, Shashi Tharoor, Pawan Khera, K C Venugopal, Supriya Shrinate, T S Singhdeo, Bhupinder S Hooda, Trinamool Congress MP Mahua Moitra, CPI(M) General Secretary Sitaram Yechury and SP Chief Akhilesh Yadav. Others who also received the notification include Shiv Sena (UBT) MP Priyanka Chaturvedi, Aam Aadmi Party’s Raghav Chadha, AIMIM President Asaduddin Owaisi, and some aides of Congress MP Rahul Gandhi.

Earlier this month, the Ministry of Electronics and Information Technology (MeitY) issued a notice to tech giant Apple regarding the controversial threat notifications received by various opposition Members of Parliament (MPs) and journalists. These notifications, sent by Apple, had cautioned the recipients about potential “state-sponsored” cyber threats targeting their devices.

The notice was a response to allegations made by several prominent opposition MPs and journalists, who claimed to have received warnings from Apple regarding suspected state-sponsored actors attempting to compromise the security of their devices.

Earlier reports indicated that the Parliamentary Standing Committee on Information Technology (IT) planned to summon Apple representatives to address the threat alerts sent by the company to Indian political leaders.

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