Industrial Update – Newsletter – October 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
While sales of BEVs (battery electric vehicles) continue to grow overall, the growth rates have overall dropped and have also got skewed
BEVs as a technology has achieved maturity for 2/3Ws, therefore countries with high usage of such vehicles are driving EV adoption. Developed countries that are primarily a 4W market are showing signs of sluggishness as adoption of BEVs beyond early enthusiasts is finding resistance – concerns being higher upfront costs with low resale value, range anxiety with insufficient charging infrastructure and falling government subsidies. Global sales growth for BEVs which averaged ~60% between 2020-23 is expected to reduce to ~20% over the next 4 years.
Plug-in hybrid electric vehicles (PHEVs) or hybrids* with improved performance address many of the issues in BEVs – along with the low carbon footprint, hybrids have lower upfront costs, higher resale value and alleviate range anxiety, thus gaining popularity in developed nations. Sales of hybrids is expected to increase across geographies going forward:
Globally, the largest players in the PHEV space include – Toyota, Honda, Hyundai, Ford, BYD, KIA, Volkswagen, Nissan and General Motors
*A hybrid uses more than one energy source, typically a combination of an internal combustion engine and an electric motor; Electric Vehicles (EVs) include both plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs)
Some recent transactions
| Oct’24 | AAM (India) | Bharat Forge acquired 100% in the Indian subsidiary of autocomp manufacturing company for ₹545 Cr. |
| Oct’24 | Orient Cement | The Adani Group’s Ambuja Cement acquired ~47% of the CK Birla owned Orient Cement for ~₹3,790 Cr. |
| Oct’24 | Thyssenkrupp Electrical Steel | JSW Steel & Japan’s JFE Steel acquired the electrical steel manufacturer for ₹4,051 Cr through a 50:50 JV. |
| Oct’24 | Uraj Mobility | EV financing provider Mufin green finance invested ~₹100 Cr in the EV 3-wheeler company |
| Oct’24 | Aarav Unmanned Sytems | The drone manufacture raised ~₹ 15 Cr. by a fundraise led by JSW Ventures |
| Oct’24 | Stellapps | The dairy supply chain management company raised ~₹218 Cr in a fundraise led by Blume Ventures |
Recent News
- Reliance Industries & Nvidia are to collaborate on building supercomputing infrastructure in India. Nvidia has also partnered with Infosys to roll out small language models based on diverse Indian dialects.
- Amber Enterprises signed a JV with South-Korean based Korea Circuit to manufacture Printed Circuit Boards (PCBs) in India
- India’s manufacturing PMI rose to 57.4 in October compared to 56.5 in the previous month; a PMI value above 50 indicates growth
- In order to boost India’s space ecosystem, the GOI has approved a ₹1,000 Cr early-stage VC fund under the umbrella of IN-SPACe
- In October 2024, FIIs sold ~₹1 Lakh Cr (US$ 12 bn) in the Indian equity markets amid a rally in Chinese stocks
- Gold hit record high at ₹81,000 for 10 grams (or $2,778.27 per ounce) as investors increasingly sought safe-haven assets
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
IMAP – International M&A Partners is an independent organization focused purely on M&A and transaction success. With over 450 M&A professionals based in over 43 countries, we work together in seamless cross-border sector teams and address each assignment with talent and dedication. We advise primarily mid-sized companies and their shareholders on the sale and acquisition of companies on a global scale.
Reach out to us to discuss more :
- Praveen Nair : +91-9820330033 / praveen@imapindia.in
- Puneet Kochar : +91-9810287367 / puneet@imapindia.in
