Good morning. Welcome to a new day, in a world where Nokia has decided to change its iconic logo after a bajillion years. Nothing is constant anymore, so sit tight.

In this edition:

• 💊 Will medicine see a price hike?

• 🚗 Kia and Hundai sparking billion-dollar trade deficits

• 📃 Belarus and India bolster business ties

MARKETS

*Stock data as of market close. Source.

• Markets: The Indian stock market took another hit as the Nifty extended its losing streak, leaving investors feeling slightly hotter under the collar. Banks and realty stocks are braving the storm, while media and metal could really use an umbrella right now.

PHARMA

Pharma companies in India take the bitter pill of pricier raw materials

💊 Pharmaceutical companies in India are facing a major setback due to the recent surge in raw material prices, which has forced many of them to increase their drug prices. The COVID-19 pandemic has only added to the woes of the industry, which is now grappling with the rising costs of production, transportation, and storage.

Rising Costs Impacting Profits

The spike in raw material prices is having a significant impact on the profits of pharma companies. Many companies are now reporting a drop in their quarterly profits due to the rising costs. Some companies have resorted to importing raw materials from countries like China and Russia, which has further increased their expenses.

Challenges Ahead

The challenges facing the pharmaceutical industry in India are numerous. In addition to the rising costs of raw materials, the industry is also grappling with challenges such as:

• Increased competition from other countries

• Regulatory hurdles

• Lack of innovation

• Changes in government policies

• The need to constantly upgrade technology and infrastructure

Looking ahead. Despite the challenges facing the industry, many companies remain optimistic about the future by investing in research and local development. The government is also taking steps to support the industry by providing incentives and easing regulations.

AUTO

India's auto industry meets billion-dollar potholes from Hyundai & Kia imports

🚗 India's Minister of Commerce and Industry, Piyush Goyal, recently stated that imports of cars from South Korean automakers Hyundai and Kia have cost India billions of dollars in trade deficit. This comes as a blow to the Indian government's efforts to reduce the country's trade imbalance, which has been a major concern for policymakers.

Impact on the Indian Auto Industry

The rise in car imports from Hyundai and Kia has had a significant impact on the Indian auto industry. Domestic car manufacturers have been struggling to compete with the affordable pricing of foreign-made cars, resulting in a decline in sales and revenue for local companies. The trade deficit has also raised concerns about job losses in the Indian auto industry.

Patching up

In response to the growing trade deficit, the Indian government has taken steps to promote domestic manufacturing and reduce reliance on imports. These measures include:

• Increasing tariffs on imported goods

• Encouraging foreign companies to set up manufacturing facilities in India

• Providing incentives for domestic production and exports

Despite these efforts, the trade deficit with South Korea remains a major challenge for India.

FOREIGN RELATIONS

Zomato asks for higher commission

Zomato is seeking a 2-6% increase in commission charges from its restaurant partners in a bid to turn a profit amid a slowdown in the food delivery business. Zomato has been charging a commission of 18-25% per order for deliveries for the past two years, depending on its arrangement with restaurant partners. The company is reconsidering the commission rate to ensure that it is competitive and sustainable for restaurants as well as Zomato. However, restaurant partners have not agreed to the Zomato demand, triggering a conflict.

Why the Conflict?

According to a restaurant industry executive, Zomato wants parity with other aggregators like Swiggy. Restaurant partners fear that the commission hike could disturb the unit economics of restaurants drastically. Zomato's move to hike the commission rate comes days after the company reported a net loss of Rs 347 crore for the October-December 2022 quarter.

INDIA EDITION: WHAT ELSE IS ON THE BIRDWATCH

• 💸 Ant Group and SoftBank lowering its holding in Paytm. Telecom billionaire Sunil Mittal of Bharti Enterprises was approached to buy the stake, but talks didn't progress. Investors can still offload shares, and a secondary sale to financial investors in the open market is possible. Paytm's CEO is against any strategic investor but okay with financial investors buying shares.

• Indian fintech platform CRED is launching a buy now, pay later service and a tap-to-pay feature as it expands its offerings to boost engagement and monetization. Cred Flash will allow customers to pay on the app and at over 500 partner merchants, including Swiggy and Urban Company.

• 🧳 The India business travel market is set to reach new summits, with a projected value of US $59.5 billion by 2028, thanks in no small part to the emergence of online travel agencies (OTAs) as key players in the sector.

• 📊 Building for builders. India's real estate sector is about to get a power boost from an unlikely source: data centers. As the demand for digital infrastructure increases, developers are rushing to build facilities to house the servers that keep India's tech-driven economy humming.

• 🍺 Germany is welcoming Indian tech wizards. Following his pro-sentiment on EU-India free trade, Chancellor Olaf Scholz is encouraging more Indian IT specialists to consider working in Germany. Scholz cited the country's welcoming attitude towards skilled immigrants and its rapidly growing tech industry.

FUNDING DEALS

Catch up on the Indian funding flows from the past 24hrs:

• Essar Group, an Indian multinational conglomerate, is set to spend a whopping $3.6 billion on transitioning to low-carbon energy in both the UK and India.

• IIT Madras is looking to launch a Rs 100 crore fund to help fuel the startup ecosystem in India.

WORLD

Headline Explorer

🛟 A bigger fish is picking up Britishvolt. Australian firm Recharge Industries has stepped up to buy out Britishvolt, the defunct battery maker from the UK that collapsed last month.

👾 OnePlus has unveiled a new concept gaming phone with glowing liquid cooling technology. The phone uses a "thermal-responsive material" that changes colour as the temperature of the device increases, signalling when the phone needs to cool down.

🇨🇳 China seeks peace for Ukraine despite US warnings over potential weapons supplies to Russia. China has refused to condemn Russia's invasion, and on the first anniversary of the war, China published a 12-point plan for a ceasefire and de-escalation. NATO allies are trying to dissuade China from supplying lethal aid to Russia, while Kyiv is looking at a counter-offensive with advanced Western weapons. Meanwhile, air raid sirens blared in Kyiv and other cities overnight, and a Russian missile killed one person in Khmelnitskyi.

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