Latest news with #PLI
Fashion Value Chain
an hour ago
- Business
- Fashion Value Chain
Nobel Hygiene Secures ₹25 Cr PLI Grant for FY 2024–25
Nobel Hygiene, a leading Indian player in the hygiene products sector, has been awarded ₹25 crore under the Production Linked Incentive (PLI) scheme by the Ministry of Textiles for FY 2024–25. Out of more than 50 applicants in the diaper segment, Nobel Hygiene is one of only two companies selected—an acknowledgment of its strong commitment to boosting domestic manufacturing and furthering the Indian government's Atmanirbhar Bharat mission. This prestigious recognition underscores the company's strategic efforts to strengthen India's hygiene sector. It follows Nobel Hygiene's recent ₹180 crore investment in a new greenfield manufacturing facility. The state-of-the-art plant is designed to enhance production capabilities, integrate cutting-edge technologies, and support the company's growing presence across the country. The PLI grant will play a pivotal role in driving innovation, efficiency, and self-reliance in India's hygiene manufacturing ecosystem. The incentive allows Nobel Hygiene to scale operations and meet increasing domestic demand, especially in underserved markets where access to quality hygiene products remains a priority. In light of this milestone, the company is open to facilitating a conversation with Mr. Nikhil Datye, CFO, Nobel Hygiene, to delve deeper into this achievement. Key topics for discussion include: The strategic importance of the Ministry of Textiles' recognition How the PLI grant is accelerating product innovation within the hygiene sector The company's roadmap for scaling operations and aligning with national self-sufficiency goals With this support, Nobel Hygiene is positioned to lead a transformative shift in India's hygiene landscape while contributing meaningfully to the textile sector's modernization. The company's role in building capacity and leveraging local capabilities serves as a model for how public-private synergy can drive sustainable and inclusive industrial growth.
Time of India
an hour ago
- Automotive
- Time of India
EV car sales penetration in India may cross 7% by FY28: CareEdge Report
Electric car sales in India are projected to surpass 7 per cent of total passenger vehicle sales by FY28, according to CareEdge Advisory, as reported by PTI . The forecast is contingent on the timely resolution of global supply disruptions in rare earth elements (REEs) and the continued rollout of new models and charging infrastructure. The report highlights that India's electric car segment, though still small in comparison to two- and three-wheeler electric vehicles, has seen significant growth—from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25. EV infrastructure, a game changer? CareEdge noted that public and private efforts to expand EV infrastructure and reduce battery dependence on imports will be crucial for maintaining momentum. 'India is well-positioned to accelerate EV adoption, supported by model launches, improved charging facilities, and battery localisation under the PLI scheme,' said Tanvi Shah, Senior Director & Head, CareEdge Advisory & Research. Public charging points have expanded fivefold in three years—from 5,151 in CY22 to over 26,000 by early FY25—helping address one of the key challenges to wider EV acceptance. Policy incentives such as the FAME III scheme and customs duty exemptions on key battery minerals are also expected to play a role in reducing production costs and supporting domestic supply chains. While challenges remain in terms of affordability and infrastructure uniformity, the report suggests that with the right policy and industry measures, electric four-wheelers are on a path to stronger adoption in India's evolving vehicle landscape.
Time of India
2 hours ago
- Automotive
- Time of India
EV trajectory: Electric car sales may cross 7% penetration by FY28, says CareEdge report; hinges on rare earth supply, infrastructure
Electric car sales in India are projected to cross 7% of total car sales by FY28, provided supply chain disruptions in rare earth elements (REEs) are resolved in a timely manner, according to a report by CareEdge Advisory. The projection is backed by an accelerating pipeline of new model launches, expanding charging infrastructure, and battery localisation efforts under the government's production-linked incentive (PLI) scheme. 'India's electric car sales penetration is likely to cross 7 per cent by FY28, provided rare earth disruption is resolved in a timely manner. With a robust pipeline of model launches, expanding EV charging infrastructure and battery localisation under the PLI scheme, India is well-positioned to accelerate EV adoption,' said Tanvi Shah, Senior Director & Head, CareEdge Advisory & Research, PTI quoted. The report notes that the electric car ecosystem in India has grown rapidly in the past three years — from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25. While electric two- and three-wheelers continue to dominate EV sales in volume, the four-wheeler segment is entering a high-growth phase, supported by favourable policy and strong private sector investment. Charging infrastructure — one of the main bottlenecks in EV adoption — is now seeing strong momentum. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo The number of public EV charging stations in India rose from 5,151 in CY22 to over 26,000 by early FY25. Further policy support under FAME III, exemptions in basic customs duty for battery-critical minerals such as cobalt and lithium-ion waste, and the ACC PLI scheme are expected to reduce vehicle costs and enhance domestic battery production capabilities. CareEdge believes these developments will be instrumental in placing India firmly on the path of sustained EV adoption over the coming years. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
3 hours ago
- Automotive
- Mint
Ola Electric's losses widened but the stock rallied. What's going on?
Known for its aggressive expansion, Ola Electric's pivot towards profitability has brought relief to investors. To be sure, revenues halved in the last reported quarter, and losses widened. But management'sintent to shift focus towards profitability, close on the heels of the auto business' first Ebitda-positive month, has kindled hopes of a long-awaited turnaround in the business. After eroding more than half of investors' wealth since listing, the stock rallied almost 20% on Monday. Is this the light at the end of the tunnel for Ola investors, or is it a sucker's rally? Earnings continue to disappoint Founded in 2017, Ola Electric was among the first movers in the electric two-wheeler space. Over the years, it has burnt cash with competitive pricing and aggressive marketing in an attempt to cement its lead. But customer complaints around product quality and after-sales service indicate that in the race for growth, quality may have taken a backseat. The latest quarter's numbers released this week were largely more of the same — falling revenues and widening losses. Compared to the same quarter last year, revenues halved to ₹828 crore and loss widened from ₹347 crore to ₹428 crore. Green shoots spur hope However, revenue increased and losses narrowed compared to the previous quarter. Q1 losses were also smaller than expected, thanks to higher operating leverage on the back of volumes propped up by the previous quarter's backlog. Gen-3 scooters made up 80% of sales during the quarter, and their higher prices supported gross margin. Ola also claims superior product quality was the reason behind the reversal of warranty provisions seen during the quarter. Declining battery prices also helped contain losses. The result? Despite falling short of the previously cited breakeven threshold of 25,000 unit sales a month, the company's auto business turned profitable at the Ebitda level in June. It was also near breakeven on operating cash flows during the quarter. Management indicated that apart from R&D, no large capex was planned for FY26. These green shoots have spurred hopes that aggressive expansion is a thing of the past and that Ola Electric's auto business may have now stepped into its next phase – profitable growth. Profitability over PLI As for Ola's cell manufacturing business, it had signed an MoU to invest Rs.4,500 crore by 2024 towards setting up 20 GWh of capacity to qualify for incentives under the government's production-linked incentive (PLI) scheme. But the company plans to invest only ₹1,000 crore to expand capacity to 5GWh, and focus on profitability thereafter. While industry players including Ola are in discussions with the government, seeking leeway on the PLI targets, Ola has indicated that it will expand cell manufacturing only to the extent that it supports its vehicle sales. It expects the cell business to break even at 3.5-4 GWh by FY27, and does no expect to need more than 5 GWh until FY29. Management has indicated it is unwilling to extend the breakeven timelines just to meet PLI targets, even if this means coughing up penalties of up to ₹100 crore. Competition may continue to play spoilsport While Ola was among the first companies to tap India's electric scooter market, its reputation has suffered some serious damage over the years. Its technological moat has also been eroded by competitors. So, when legacy two-wheeler manufacturers including TVS and Bajaj entered the EV space, Ola's market share slipped sharply from 50% to less than 20% in a year. The only other listed pure-play EV manufacturer, Ather Energy, gained ground during the period. A smaller share of a fast-growing pie would not have been as much of a bother. But the pie has also been growing more slowly. Government initiatives to boost electric two-wheeler sales are gradually being phased out. FAME-II concluded in March 2024, and electric mobility promotion scheme (EMPS) is set on glide path down to just Rs.5,000 worth of subsidies per scooter by 2026. Thus the onus is now increasingly falling on organic adoption of electric two-wheelers. Though electric scooters still constitute only about 7% of all EVs sold in India, sales growth has moderated. This explains the manufacturers' pivots from aggressive market penetration to profitable growth. Ola had to slash 1,000 jobs in FY25 to rein in losses. Ola's deeper issues persist Ola's troubles run deeper than industry headwinds. While the electric two-wheeler segment registered a robust 31.7% growth in June, Ola's sales fell 45%. The company's brand image has been hurt by widespread service issues and customer complaints, which caused the Central Consumer Protection Authority) to step in at one point. Ola responded by resolving a bulk of the pending complaints and investing in doubling its footprint to 4,436 stores. The bulk of these as company owned and company operated, piling on further losses and draining cash. But service issues have apparently persisted. Recently, Ola's flagship electric motorcycle, Roadster X Plus, was in the news as several customers complained about charging issues. The company has also had issues with registration agencies, after which it moved registration in-house. This led to backlogs in registration and invoicing, discrepancies between reported sales and registrations, and delays in deliveries. While the company now claims to have cleared the backlog, it was almost dragged to insolvency over the conflict. This month Ola faced a shutdown of most of its stores in Maharashtra, India's largest electric scooter market. The company is working with the authorities to resolving the issue, which pertains to its store permits and trade certificates. Ola had also seen a string of management exits, further eroding the brand's reputation. Overoptimistic projections? Management has guided for 3.25-3.75 lakh vehicle deliveries and ₹4,200-4,700 crore of revenue during the year. With Q1 revenue at just about ₹800 crore, the guidance optimistically projects average quarterly revenue at ₹1,100-1,300 crore for the rest of the fiscal year. The sharp pickup in revenues assumes strong traction of the company's new launches – one every quarter over the next two years. Management expects gross margin to expand from 26% in Q1 to 35-40%, and has guided for at least 5% Ebitda margin for the full fiscal year. It also expects operating cash flows to turn positive by the end of FY26. A lot seems to be riding on its Gen-3 scooters – higher gross-margins, reduced warranty claims, and PLI benefits kicking in from Q2. Meanwhile, its ongoing efforts at vertical integration towards manufacturing cells and rare-earth-free motors are expected to help control costs, enhance performance, and improve supply-chain resilience. The company is also counting on Project Lakshya to cut costs. While cost savings in Q1FY26 have been attributed to the project, lower battery prices are likely to have also played a role. The proof will be in the pudding. If revenue growth accelerates, margins expand in line with management's guidance, and customer complaints taper off, investors will feel reassured that Ola Electric is walking the talk. For more such analysis, read Profit Pulse. Ananya Roy is founder of Credibull Capital, a SEBI-registered investment adviser. X: @ananyaroycfa Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
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Business Standard
3 hours ago
- Automotive
- Business Standard
Electric car sales penetration to cross 7% by FY28: CareEdge Advisory
Electric car sales penetration is expected to cross 7 per cent by FY28 subject to timely resolution of rare earth element (REE) disruption and riding on the back of new model launches, according to a report by CareEdge Advisory. The increase in penetration would also be dependent on government push for improving the charging infrastructure in the country. India's electric car ecosystem has witnessed significant momentum over the past three years, growing from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25, it said. "India's electric car sales penetration is likely to cross 7 per cent by FY28, provided rare earth disruption is resolved in a timely manner. With a robust pipeline of model launches, expanding EV charging infrastructure and battery localisation under the PLI scheme, India is well-positioned to accelerate EV adoption," Tanvi Shah, Senior Director & Head, CareEdge Advisory & Research said. While electric four-wheelers still comprise a small share of total EV sales -- dominated by two- and three-wheelers -- the segment is now entering a high-growth trajectory supported by both public policy and private sector commitment, it added. The report noted that charging infrastructure, historically one of the most significant bottlenecks in India's electric vehicle (EV) adoption journey, is witnessing unprecedented growth. Over the past three years, the number of public EV charging stations in the country has grown from 5,151 in CY22 to over 26,000 by early FY25, it said. Besides, initiatives such as FAME III, production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) batteries, and basic customs duty exemptions on critical battery minerals -- including cobalt, lithium-ion waste, and graphite -- are expected to lower vehicle production costs and improve domestic supply chain resilience, it added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
