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Business Standard
6 days ago
- Business
- Business Standard
SC allows manufacturing unit's closure, orders ₹15 cr ex-gratia for workers
The Supreme Court on Wednesday allowed the closure of a unit manufacturing biscuits for Britannia Industries Limited (BIL) for over three decades by overruling a Bombay High Court verdict. Justices Sanjay Karol and Prashant Kumar Mishra passed the verdict on an appeal of Harinagar Sugar Mills Ltd (HSML) against the high court's February 17, 2023 order. While HSML initially offered Rs 10 crore as a goodwill gesture to its employees, the court enhanced this amount to Rs 15 crore and ordered its payment within eight weeks. Considering that some of the employees may be, with the closure of this concern, losing the only job they have known and still others would be, for no fault of their own, rendered unemployed, we appreciate the gesture made by HSML. Such a statement is taken on record," the court said. Senior advocate Mukul Rohtagi, appearing for HSML, had left it to the court to decide on the enhancement. We deem it just and proper to further enhance the appellants' offer by a sum of Rs 5 crore, thus, making it Rs 15 crore instead of Rs 10 crore, as mentioned in our order... Let the amount be released forthwith, as per their entitlement, in favour of the employees and, in any case, not later than eight weeks from the date of the judgment, it said. HSML was engaged in biscuit manufacturing exclusively for BIL for over three decades under successive job work agreements and the latest agreement of May 22, 2007 was terminated by BIL with effect from November 20, 2019, following a six-month notice period. In response, HSML applied for closure of its operations under Section 25-O of the Industrial Disputes Act, 1947, submitting the application on August 28, 2019, and notifying its workers shortly thereafter. The case reached the Bombay High Court through petitions after the Maharashtra State Government allegedly failed to respond to the closure application within the statutory period. The state government said that a letter of September 25, 2019, amounted to a refusal of permission. HSML contended that the delay triggered the deemed approval clause under the relevant provision of the Industrial Disputes Act. Justice Karol, who authored the verdict, considered whether the state government's communication of September 25, 2019, qualified as a valid refusal order under the Industrial Disputes Act. The bench also dealt with the question whether the deputy secretary, who issued the communication, was legally empowered to do so. The verdict ruled in favour of HSML and held that the letter of September 25, 2019 did not constitute a valid or reasoned order of refusal as mandated by law. The deputy secretary, it held, was not the 'appropriate government' under the Act, and had no authority to seek resubmission or revision of the closure application. The bench then held since no valid order was passed within 60 days of the application, permission to close must be deemed granted, effective from October 27, 2019. We hold that the application dated August 28, 2019 was complete in all respects, and the 60-day period for the deemed closure to take effect would be calculable from said date," it said. Secondly, the deputy secretary was not the appropriate government who could have asked HSML to revise and resubmit the application for closure as the authority was only vested with the minister concerned, it said. "The minister did not, even in the slightest, consider the merits of the matter independently, much less with or without any application of mind. Subdelegation to the officer was not permitted by law, and, therefore, any communication made by him would be without any legal sanction, the verdict said. The bench reiterated the constitutional right to trade and business under Article 19(1)(g) and closures must still adhere to statutory procedures that safeguard public interest and employee rights. The bench acknowledged the humanitarian aspect of the case and appreciated HSML's willingness to provide additional compensation. The amount was ordered to be disbursed among the affected employees within eight weeks from the date of the judgment.
Mint
21-05-2025
- Automotive
- Mint
Powering auto giants: Can Belrise's IPO charge up your portfolio?
Mumbai: Belrise Industries, a Pune-based leader in India's two-wheeler auto components sector, opened its ₹2,150 crore initial public offering (IPO) on Wednesday, aiming to capitalize on a recovering market backed by strong rural demand. The company's 24% share in metal components for two-wheelers and its portfolio of marquee clients, including Bajaj Auto, Hero MotoCorp, Honda, Jaguar Land Rover, and Royal Enfield, position it as an attractive entrant in the capital markets. The IPO, priced between ₹85 and ₹90 per share, includes a fresh issue with proceeds largely earmarked for repaying ₹1,618 crore of debt. The issue closes this Friday. With growth slowing and margins under pressure, investors face a key question: does Belrise have the firepower to sustain momentum and deliver returns at its current valuation? Leaner debt, cleaner balance sheet Belrise has made strides in improving its financial health. Its debt-to-equity ratio dropped from 1.48x in FY22 to 0.97x in FY24 and continues to improve. Management plans to maintain debt around ₹1,000 crore post-repayment, well within comfort levels, according to Swastid Shrikant Badve, chief of staff at Belrise. Net debt stood at ₹2,592 crore as of December 2024. Valuation also looks compelling. At the upper price band, Belrise's price-to-earnings ratio stands at 18.8x, markedly lower than peers like JBM Auto (83.82x), Bharat Forge (62.57x), Uno Minda (56.81x), Minda Corp (44.91x), and Endurance Technologies (38.08x). Badve emphasized the company's commitment to fair valuation. "We've consistently outperformed over the past eight years, and we aim to maintain that growth momentum. Our approach is simple, we want to be fair to our investors. We want them to grow with us and benefit over the long term," he told Mint in an interview. Rajnath Yadav, senior analyst at Choice Broking, noted that BIL is seeking a valuation that remains at a discount to the peer average based on enterprise value/sales. While the company has shown growth in both revenue and net profit, its margins have come under pressure. Also read | Shareholdings moves in Q4: Pledging peril hits smallcaps, escalating investor worries 'To address this, BIL is focused on increasing its content per vehicle, which is expected to enhance profitability. Additionally, the planned debt repayment is likely to contribute further to margin improvement. The company's recent acquisition is expected to enhance its product offerings and drive sales growth, contributing positively to its overall business performance, said Yadav. Despite a strong client base and a leaner balance sheet, Belrise's financial performance has come under pressure in recent years. Revenue growth, which stood at 25.5% in FY22, slowed to 13.7% in FY24 and further tapered to just 0.9% in the first nine months of FY25. This deceleration has been accompanied by steady erosion in profitability, with net profit margins narrowing from 4.9% to 4.1%, and return on net worth declining from 15.1% to 9.5% over the same period. Also read | Shareholdings moves in Q4: Indian Inc's founders hike stakes in select small-cap firms Operating margins improved slightly to 12.8% in 9MFY25 but remain below FY22 levels. To counter these pressures, Belrise is innovating with new products like hub motors, steering columns, and polymer parts to increase per-vehicle content. 'Rural demand remains steady, and we're targeting premium vehicles where content per unit is higher. We're also working on expanding our footprint among smaller OEMs to deepen market penetration," said Badve. A key concern for investors is Belrise's dependence on a concentrated customer base. In FY22, its top 10 clients accounted for 64.4% of revenue, a figure that dipped to 50.8% in FY24 but climbed back up to 63.8% in the first nine months of FY25. Such reliance exposes the company to significant client-specific risks. Any reduction in orders, loss of a major customer, or deterioration in a client's financial health could materially impact Belrise's revenue and profitability. Addressing these concerns, Badve said, 'While we already have strong relationships with major players like Bajaj, Honda, and Hero, the goal now is to replicate that level of engagement with others such as Suzuki, Royal Enfield, and similar customers." Unlike peers such as Endurance Technologies and Motherson Sumi Wiring India that have been scaling up rapidly, Belrise has seen limited capacity expansion in recent years, operating with the same 15 manufacturing plants since FY22. And while that's now beginning to change, the company still has some ground to cover. 'We have operated with 15 plants until recently, but with the acquisition of H-One India in March 2025—a former subsidiary of Japan's H-One Company—we've added two more facilities in Noida and Rajasthan," Badve said. 'We also have three new plants coming up in Chennai, Bhiwadi, and Pune, which will take our total count to 20 in the coming quarters." Also read | Shareholding moves in Q4: Million new investors flocked to these firms Even so, a significant portion of Belrise's production remains geographically clustered. Maharashtra alone houses seven of its 17 facilities (post-acquisition), exposing the company to regional disruptions—be it from labour issues, policy shifts, or supply chain bottlenecks. Meanwhile, rising input costs have added to the pressure. Raw material expenses climbed from 83% of total costs in FY22 to over 85% in 9MFY25. 'Volatility in key raw material prices makes it difficult to maintain profitability and stable return ratios," Yadav said. 'Belrise's margins remain vulnerable to raw material price fluctuations, particularly steel and polymers. While its cost-plus model allows some cost pass-through, delays or limitations in doing so—especially in volatile or competitive markets—can strain profitability and working capital," noted an ICICI Direct Research report. Two-wheeler tailwinds—and risks What may work in Belrise's favour is a revival in its core market. India's two-wheeler market appears to be entering a fresh growth cycle. After bottoming out at 13.7 million units in FY22, volumes are projected to rebound to 30-31 million units by FY30, implying a compounded annual growth rate of 7-8%. The recovery is being led by rural demand, particularly for lower cubic capacity (CC) models, which now account for 45-50% of total domestic motorcycle sales. For a company like Belrise, which draws a significant share of its revenue from two-wheeler OEMs, this upcycle presents an opportunity, if it can execute well on margin improvement, product diversification, and customer expansion. But analysts urge caution. 'The auto ancillary sector, while supported by strong OEM linkages, is not immune to cyclical pressures," said Anirudh Garg, partner and fund manager at Invasset PMS. 'Slowing revenue growth often reflects a combination of plateauing domestic two-wheeler demand, rising EV penetration affecting traditional parts, and soft exports. Even with robust client relationships, growth can taper if the product mix isn't evolving fast enough or if geographical diversification is limited," he added.
Yahoo
13-05-2025
- Health
- Yahoo
Federal government blocks cleanup funds as city officials scramble to contain toxic water crisis: 'There are known health effects'
When companies expose the public to dangerous chemicals, there should be remedies to clean up the toxins and ensure safety. This is not happening for residents of Fayetteville, North Carolina, who are facing a potential utility rate hike and an ongoing threat to public health after an executive order froze funds meant to clean up the city's PFAS exposure, WRAL News reported. Fayetteville's water has been contaminated with PFAS for years. One of the notable causes is the Chemours Fayetteville Works plant, which dumped the chemicals into the Cape Fear River. The Public Works Commission was supposed to receive $60 million in federal funding to install a new filtration system to address the contamination. That funding would have come through the Bipartisan Infrastructure Law and included a low-interest loan with partial principal forgiveness from the state Division of Water Infrastructure. However, in March, President Donald Trump issued Executive Order 14154, pausing disbursement of funds from the BIL and Inflation Reduction Act. Now, the Fayetteville PWC has no way to fund the vital infrastructure upgrade except through rate hikes to residents, who are already having their rates raised by almost 11% over the next two years. "These funds are needed to construct the granular activated carbon filtration system that we're working on," said Chris Davis, chair of the PWC board, during a recent city council meeting, per WRAL. "If the federal funding support goes away, it's apparent that PWC's only option is to look at rates." PFAS, also called "forever chemicals," are a class of chemicals used in a variety of products, including many with nonstick, stain-resistant, and water-resistant properties. PFOA and PFOS are two examples of PFAS. They are called forever chemicals because they don't break down, even over a prolonged period of time. "These are a class of compounds that persist," said Ralph Mead, a PFAS researcher from the University of North Carolina Wilmington, per WRAL News. "They don't break down. They build up in your body over time. And the ones we know the most about, there are known health effects." Those effects include cancer, liver damage, immune system damage, and developmental problems. While the funding may be on hold, officials say the PWC operations are not affected. There is some uncertainty about whether the filtration system will be in place to comply with new federal limits that go into effect in 2029, but it appears the project will go forward. Do you worry about having toxic forever chemicals in your home? Majorly Sometimes Not really I don't know enough about them Click your choice to see results and speak your mind. Jean Zhuang, a staff attorney at the Southern Environmental Law Center, questioned the legality of the executive order that halted the funds. It's possible it could be overturned if a legal challenge moves forward. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
29-04-2025
- Business
- Yahoo
Letter: Protect public lands, clean energy in budget measure
Congress will soon vote on the budget reconciliation package that aims to massively cut investments in climate and clean energy and sell off many of our cherished public lands — all to give huge tax cuts to billionaires. Major targets for defunding are the climate and clean-energy provisions of the 2022 Inflation Reduction Act intended to cut climate pollution 40% by 2030 while creating 9 million clean energy jobs, stimulating economic growth and contributing to a reduction in the country's reliance on fossil fuels. The nearly $400 billion of clean energy funds in the IRA have fostered $600 billion in private investment across roughly 750 clean-energy projects, creating more than 406,000 jobs as of January. The IRA plus the Bipartisan Infrastructure Law of 2021 are funding 1,092 projects to the tune of $4.7 billion, primarily to businesses and farms, within a 50-mile radius of Reading. The BIL is providing the Reading School District $8.9 million for electric buses to replace its diesel fleet. Federal clean energy incentives also support the Reading Unitarian Universalist Church's solar installation. Sens. John Fetterman and David McCormick and all of Pennsylvania's U.S. House representatives must protect clean-energy investments, the climate and public lands in the budget bill. Phila Back Kutztown
Yahoo
22-04-2025
- Health
- Yahoo
Cutting money for energy efficiency isn't just unwise, it's plain dangerous for vulnerable Arizonans
Photo via Getty Images As Arizona's summers grow longer and hotter, keeping cool isn't just about comfort — it's a matter of survival. Extreme heat is the leading weather-related cause of death in the U.S., with vulnerable populations — including children, outdoor workers, communities of color, and those with chronic conditions like asthma or heart disease — facing the most significant risk. The health dangers are undeniable. According to the Centers for Disease Control and Prevention, extreme heat can lead to heat exhaustion, heatstroke and even death. The financial burden extreme heat brings is just as alarming. Higher temperatures lead to higher energy bills. Low-income households in Arizona spend nearly 14% of their annual income on energy costs, compared to just 3% for wealthier families. For seniors, many of whom rely on fixed incomes from Social Security or pension programs and often live in older, inefficient homes that are expensive to cool and maintain, extreme heat leaves them especially vulnerable. Not all homes are equipped to handle Arizona's harsh summers. Poor insulation, outdated cooling systems and inefficient windows allow heat to build up indoors, forcing air conditioners to work overtime and driving up costs. For families already struggling to pay their bills, this means making tough choices between running the AC and paying for other essentials. To help alleviate these struggles, investments made possible by the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) are improving home energy efficiency and lowering energy costs for families. These federal laws are making it easier to upgrade insulation, improve cooling systems, and reduce energy bills — especially during extreme heat waves. While this support is critical, many families remain unaware of the resources available or face challenges accessing them. Yet, despite these transformative benefits, President Donald Trump's recent executive orders aim to rescind unspent funds from these critical initiatives, undermining progress at a time when continued investment is urgently needed. The IRA makes it easier than ever for homeowners and renters alike to improve their homes' energy efficiency while reducing costs. Thanks to its incentives, in 2023 alone, more than 3.4 million American households benefited from $8.4 billion in tax credits for clean energy improvements. In Arizona, over 88,000 families saved a combined $285 million on energy efficiency and clean energy investments. Through the IRA, Arizona families can make energy-efficient home upgrades with tax credits covering up to 30% of the cost — but these programs won't last forever. Homeowners who install better insulation, energy-efficient windows, or solar panels can receive up to $3,200 in annual tax credits. In comparison, those who upgrade to a high-efficiency heat pump air conditioner can receive up to $2,000 in credits, saving an average of $500 per year on energy bills. Additional incentives are available for purchasing energy-efficient appliances, with rebates for windows, doors, and home energy audits. Beyond cost savings, these upgrades create cooler, healthier homes. Improved insulation and energy-efficient cooling systems help maintain safe indoor temperatures, while better air circulation reduces indoor air pollution, which is critical for those with heart and lung conditions. By investing in efficiency, families can protect their health while lowering their utility costs for years to come. Arizona's summers will only continue to test the resilience of its residents. While existing programs provide relief, their future remains uncertain, making it crucial to take advantage of available resources before they are gone. For those considering energy efficiency improvements — installing solar panels, upgrading to energy-efficient appliances, or taking advantage of tax credits — now is the time to act. Every step taken today, no matter how small, can make a difference in staying cool, reducing costs and protecting the health of Arizona families in the face of rising temperatures. Environmental factors like extreme heat are pressing public health issues requiring urgent action. Investing in energy efficiency and ensuring access to cooling resources isn't just about comfort — it's about protecting the health and well-being of our communities today and for generations to come. To learn how the Inflation Reduction Act's clean energy programs can improve your family's health and lower energy costs, visit SUPPORT: YOU MAKE OUR WORK POSSIBLE
