Tag: GDP

News

StoxBox: Views on India Gross Domestic Product (GDP) Quarterly YoY data

Jun 1, 2024 by Mansi Praharaj 0 Comments #GDP, #Indian economy, #StoxBox, #YoY data

BY: Manish Chowdhury, Head of Research, StoxBox

The Indian economy grew more-than-expected by 7.8% annually in the fourth quarter of FY24, much ahead of market expectations of a 6.7% growth. The growth momentum in the economy which grew 8.2% in FY24 can be attributed to the strong performance of the manufacturing and mining sectors due to the quality of capex spending in targeted areas and sustained domestic demand. With various high-frequency indicators indicating the sustenance of this growth in the current quarter as well, we believe that the initial groundwork is laid for beating market estimates and an upward revision to forecasts as we move ahead. We are of the view that the capex spending, which has moderated due to elections, would pick-up steam in future, thereby providing further fillip to the growth momentum.

Business

JSW Cement to invest around Rs 3,000 crore to establish new integrated cement facility in Rajasthan

May 23, 2024 by Sujata Muguda 0 Comments #Cement facility in Rajasthan, #Construction market, #GDP, #JSW Cement, #JSW Group, #Mr Nilesh Narwekar, #Mr. Parth Jindal, #MTPA, #NCR

JSW Cement, part of US$ 24.25 billion JSW Group, plans to invest around Rs 3,000 crore to establish a greenfield, integrated cement manufacturing facility in Nagaur district of Rajasthan. The ground-breaking ceremony was held recently to commence the construction of the cement factory. JSW Cement’s investment in the new cement facility includes a clinkerization unit of up to 3.30 MTPA and a grinding unit of up to 2.50 MTPA, along with an 18 MW waste heat recovery based power plant. The investment also includes an approx. 7 km long Overland Belt Conveyor to transport limestone from the mines to the manufacturing plant and arrangements to use alternative fuel in the kiln. The proposed investment will be funded through a mix of equity and long-term debt.

JSW Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary clearances. Once commissioned, this unit will mark JSW Cement’s entry into the attractive North India cement market. The current investment is expected to create more than 1,000 direct & indirect job opportunities.

According to Mr Parth Jindal, Managing Director of JSW Cement, “This is one of the most significant investments we are making in Rajasthan through our cement business. I look forward to working with the Rajasthan State Government to contribute to the economic development of the State while continuing to create substantial employment opportunities in the region. The proposed investment to establish our integrated cement facility in Nagaur puts JSW Cement firmly on its path to achieving a pan-India footprint within the next few years. The new capacity in this region will enable us to service the prolific needs of our customers in the Northern States of Rajasthan, Haryana, Punjab and the NCR region.”

Mr Nilesh Narwekar, CEO of JSW Cement said, “This investment will mark our entry into the fast-growing and attractive cement markets of North India. These States have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development. We are very excited to be able to enter into this booming construction market and will aim to provide our customers with high quality cement and a world-class customer service.”

Technology

Chemical manufacturers manage 1,500+ compliances for a single unit: Reports Teamlease RegTech

May 20, 2024 by Sujata Muguda 0 Comments #1955, #Chemical Industry, #Chemical manufacturers, #Chemical Weapons Convention Act, #EHS, #Essential Commodities Act, #GDP, #India’s leading Regulatory Technology (Regtech) solutions company, #New Delhi, #policymakers, #Rishi Agrawal, #Simplifying Compliance Management for the Chemical Industry, #Teamlease RegTech

New Delhi, May 20, 2024: TeamLease Regtech, India’s leading Regulatory Technology (Regtech) solutions company, has released its report titled ‘Simplifying Compliance Management for the Chemical Industry.’ The report provides an overview of the complexity of compliance and the challenges entrepreneurs and employers face in the Chemical Industry. It also delves deep into the present regulatory framework and suggests actionable recommendations for enterprises and policymakers.

The chemical industry in India contributes 7% to India’s GDP and accounts for 11% of exports, with over 80,000 products. Production of this $220+ billion industry ranks 6th globally and 3rd in Asia and is expected to reach $1 trillion by 2040. In terms of employment, the industry provides jobs to over 2 million people. India is also a global supplier of dyestuff and dye intermediaries, accounting for around 16% of the global production.

A single entity, chemical manufacturing enterprise with a single manufacturing unit operating in Maharashtra faces 635 unique obligations, of which 299 (47.1%) are at the union level, 332 (52.3%) are at the state level, and 4 (0.6%) are at the municipal level. However, this figure inflates to 1,545 once we factor in the frequency of these obligations. For instance, there are 53 monthly, 93 quarterly, and 48 half-yearly compliance requirements. The company must also obtain 72 licenses, permissions, and approvals under 52 acts. Even before starting construction of the site, the corporation must also complete over 60 one-time registrations and approvals, including 10 certificates/ approvals under the Maharashtra Regional and Town Planning Act, 1966.

Rishi Agrawal, CEO and Co-Founder, TeamLease RegTech says, “The Chemical Industry is a key driver of economic growth. The output it generates is essential for numerous sectors ranging from steel to pharmaceuticals to plastics, impacting everything from healthcare to technology. It employs over 2 million people and will be a major employment generator in ‘Amrit Kaal’. However, the complexities around compliance are a significant binding constraint to business growth. A typical chemical manufacturing company deals with 635 unique and over 1,545 total compliance obligations in a year. These compliances include at least 72 different types of licenses, permissions and registrations. It is here that digital compliance solutions and workflows can play a critical role in ensuring smooth compliance functioning within the organisation. This report explores the underlying complexities that affect employer compliance in the chemical industry.

Due to the nature of the industry, companies must comply with the Chemical Weapons Convention Act, 2000 and Chemical Weapons Convention Rules, 2016, Essential Commodities Act, 1955, and Insecticides Act, 1968 and Rules, 1971, among other acts. Depending on size, chemical companies must follow hundreds of laws and thousands of rules. There is also pressure to follow the Ministry of Environment, Forest, and Climate Change (MoEF&CC) chemical committee and Basic Chemicals, Cosmetics, and Dyes Export Promotion Council export regulations. Compliance also depends on the location of manufacturing units (industrial areas, export-oriented units, gramme panchayats, special economic zones, etc.), quantity and severity of chemicals manufactured, and use of specific equipment. Notifying the relevant authority to change threshold quantities is also difficult. Most Indian chemical companies struggle to track compliance with so many regulations.

The report reveals that an enterprise must obtain 72 licenses across Union, State, and Municipal/ Local levels. At the manufacturing unit level, labour compliance account for ~53% (334), commercial compliance make up more than 21% (136), and EHS constitutes over 15% (98) of the unique obligations. Once the frequency of these compliance is factored in, it is revealed that such a business must cater to up to 1,545 obligations in a year. These obligations rise exponentially as soon as the business increases its scale of operations and expands its geographical footprint. 53 regulations need to be complied with monthly, while 93 must be dealt with in every quarter. Tracking and managing all applicable regulatory obligations can be exceedingly difficult when done with Excel sheets dependent on people and done on an ad-hoc basis. The report concludes with recommendations for compliance reforms that can further improve the ease of doing business and provide a new-age solution for compliance management for employers.

Disclaimer: The opinions expressed in this article are solely those of the author and not necessarily endorsed by any organization. The information provided is for informational purposes only and should not be considered professional advice. Readers are encouraged to verify information independently.”

News

Driving Economic Growth Through an Efficient Logistics Network

Apr 25, 2024 by Sujata Muguda 0 Comments #GDP, #Logistics Network, #Logistics Performance Index, #Mr. Darshan Ghodawat

Darshan Ghodawat

By Mr. Darshan Ghodawat, CEO and Managing Director, AVA Global Logistics LLP

A robust logistics network serves as both an enabler and a stimulant for the growth of the economy. It gives investment a push, encourages consumption, and promotes investment by facilitating the transit of products around the globe. This assumes critical significance for countries such as India, where the efficiency of logistics significantly impacts their ability to compete at the global market level. Streamlining the movement of products from suppliers to manufacturers, distributors, retailers, and consumers, can optimize efficiency.

 Logistics expenses in India currently range from 14-18% of GDP, which is higher than 8%. Worldwide. To minimise these expenses and maximize the benefits of economic changes, the Indian government established the National Logistics Policy (NLP) in. India’s goal is to align its logistics expenses with global standards by 2030 and secure a position in the top 25 countries on the Logistics Performance Index (LPI).

 As poor logistics management can lead to reduced sales, harm to reputation, and worse profitability, adopting the right practices give businesses a competitive advantage by investing in nimble supply chain and logistics operations. Efficient logistics management can significantly reduce transportation expenses for enterprises. Transportation expenses can be a substantial financial burden for businesses, particularly those that depend on transporting their goods. Effective logistics management can assist organizations in optimising their transit routes and selecting the most economical carriers. In terms of importing from countries in the neighborhood region, nearshoring reduces transportation costs and transit time,
along with reducing carbon footprint and multiple handling of goods. This has a cascading effect on the supply chain throughput times. Optimally locating fulfillment centres closer to consumers expedites the last mile delivery which is very critical in a highly competitive e-commerce marketplace.

 Near shoring not only reduces transportation cost and transit time but also reduces carbon footprint and multiple handling of goods. This has a cascading effect on the supply chain throughput times.

 Optimally locating fulfillment centres closer to consumers expedites the last mile delivery which is very critical in a highly competitive e-commerce marketplace. When it comes to efficient use of material handling equipment, hub and spoke arrangements reduces the dwell time and increase load-ability, thereby optimizing the overall logistics cost.

 An additional advantage is the guarantee of timely and accurate delivery of the appropriate products to the designated location on the back of being an efficient

network. Businesses can enhance the visibility of their supply chains with the aid of effective efficiency interventions. Like the capability to trace and monitor the movement of materials and products throughout the delivery system to create supply chain visibility. The strategic significance of the fabrication yard’s location too is paramount in logistics. These yards play a crucial role in the assembly, building, and customization of components required for large-scale projects. When located near project sites or main transportation routes, they help reduce transportation expenses and simplify logistical operations to meet project timeframes and goals.

 The decision between stick-built and modular supply methods can have a substantial impact on time and cost efficiency modular supplies can help reduce the risks associated with unfavorable weather conditions and disturbances at the project site, resulting in more predictable project schedules and enhanced overall efficiency. In the end, the decision between stick-built and modular supply depends on the specific needs of the project, financial limitations, and availability of skilled labor

 As India moves towards becoming a $ 5 trillion economy, efficient logistics management will only become crucial for organizations to thrive in the fast-paced and competitive business world of today. Businesses can achieve higher profitability and long-term success by optimizing transportation routes, enhancing customer service, decreasing inventory costs, boosting supply chain visibility, and increasing operational efficiency. Businesses must invest in efficient logistics management methods and technologies to be competitive in the market as it is our best delivery mechanism of economic growth.