Industrial Update – Newsletter – November 2024
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
A key policy objective of the NDA government, since coming to power in 2014, has been to boost India’s manufacturing sector. Its flagship “Make in India” program aimed to create 100 Mn manufacturing jobs by increasing manufacturing’s share in GDP to 25% by 2022, establish India as a global manufacturing hub and drive manufacturing exports.
Key initiatives under this push have included:
Despite this, outcomes remained insipid:
Thus, despite govt support, manufacturing output, employment and exports have at best kept pace with overall economic growth. Some of the possible reasons for this underperformance include:
However, green shoots appear visible in the Gross fixed capital formation (GCFC) data. GCFC from Mar’14 to Mar’21 grew only at a CAGR of ~3% (at constant prices) as against ~13% in the 2 years since then. The Make in India program is believed to have supported the sector during the period of turmoil, helping it sustain its share of GDP.
A lot more though needs to be done – land & labor reforms at the state level, targeted push in labor intensive sectors, rethinking import tariffs that make exports uncompetitive, investments in skilling and education among others
Some recent transactions
| Nov’24 | Marut Drones | The Agri-drone manufacturer raised ~₹ 52 Cr in a fundraise led by Lok Capital |
| Nov’24 | E2E Networks | L&T acquired a 21% stake in the cloud computing solutions provider for ~₹1,402 Cr. |
| Nov’24 | Vyuti Systems | The robotics deep tech startup raised ~₹85 Cr in a fundraise led Pavestone VC and Athera Ventures |
| Nov’24 | Dream Chip (Germany) | The Indian semiconductor chip designer, Tessolve, acquired the German semicon player for ~₹400cr |
| Nov’24 | Zepto | The quick-commerce unicorn, raised ~₹2,957 Cr in a fundraise led by Motilal Oswal AMC |
| Nov’24 | DoodhVale | The value-added milk product manufacture raised ₹25 Cr in a fundraise led by Atomic Capital |
Recent News
- EMS company Dixon Technologies, partnered with Taiwanese ODM, Compal Electronics to manufacturer Google Pixel smartphones in India; smartphones currently constitute over 60% of Dixon’s sales
- India’s manufacturing PMI for Nov’24 stood at 57.3; marginally down from 57.5 in the previous month. A figure over 50 symbolizes growth
- U.S. stocks rallied sharply to Trump’s victory with investors expecting lower taxes and deregulation
- Bitcoin prices also reached a all time high of ~US$ 96,675 following a historic bull run in the Crypto market fueled by optimism surrounding potential regulatory ease in the U.S. post-election
- India’s GDP growth fell to a seven-quarter low of 5.4% in Q2’ 25, down from 8.1% in the same period last year due to a drop in govt. spending, excess manufacturing capacity in other regions and weaker domestic consumption
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Commodity Prices Index
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