Today’s Latest Business News, Finance and Share Market News at 9:30 am on 21 June 2023

First up. French aircraft manufacturing giant Airbus had already taken a vast lead over its US-based rival Boeing in the Indian aviation market. The distance between the two just got wider, with the mammoth 500-plane deal between Airbus and IndiGo on Monday. The latest order means Boeing has received just about a third of the new aircraft orders from airlines in India in the last 18 months. Over the last decade, Boeing’s market share in India has dropped to nearly half — 23% by the end of 2022 compared to the 53% clocked in 2013 — according to London-based global fleet data and travel analytics research provider Cirium. Given that the numbers exclude Air India’s 470-plane order and Indigo’s 500 as they were signed this year, an analyst said “it proves beyond doubt that Airbus is now the undisputed king of the Indian airspace”.

Moving on. Sales of fast-moving consumer goods (FMCG), durables and retail sectors have seen an uptick in June as inflationary pressures ease and rural markets begin to revive. The improvement comes after a difficult April-May period, when unseasonal rain, overstocking and a discretionary slowdown hit sales, according to data from retail intelligence platform Bizom and the Retailers Association of India. Estimates by industry experts suggest that FMCG sales may grow 4-5% in June and durables by 2-3%, while retail sales could increase 8-9% on the back of aggressive offers, sales and promotions by apparel, fashion and lifestyle majors ahead of monsoon. “June is trending well from a secondary and tertiary sales perspective. This is heartening because it shows that there is demand on the ground and consumers are opening their purse strings,” Akshay D’Souza, chief of growth and insights at Bizom, said.

Now some news from the world of finance. Piramal Enterprises will sell its entire 8.3% stake in Shriram Finance, according to a term sheet accessed by FE. The development comes a day after TPG India Investments II sold its entire 9.92 million shares or 2.65% stake in the company. That sale was at Rs 1,401 per share, valuing the transaction at Rs 1,390 crore. As per the term sheet, Piramal Enterprises will sell up to 31.2 million shares for Rs 4,630 crore. The shares will be sold at a floor price of Rs 1,482 per share, which is at a discount of up to 5% to the current market price of Shriram Finance. Investment banker Morgan Stanley will be the sole broker of the block deal according to reports. In 2019, Piramal Enterprises had sold its entire 10% stake in Shriram Transport Finance for Rs 2,300 crore as part of its broader strategy to leverage opportunities for growth in the financial services business. Shriram Transport Finance and Shriram City Union Finance were merged in 2022.

Switching tracks. The controversial agriculture marketing laws may have been revoked, but a rising number of farmers now have access to buyers anywhere in the country, thanks to the electronic National Agriculture Market. While the trade in farm produce on this platform, launched in April 2016, is set to cross Rs 1 trillion in FY24, inter-state eNAM trade is gathering pace, too. Moreover, farmers in four states — Andhra Pradesh, Telangana, Tamil Nadu and Rajasthan — have just started selling their produce using electronic negotiable warehouse receipts, paving the way for a digital wholesale market in farm trade. Market observers say the thriving eNAM trade is to weaken the grip of APMC mandis, a key objective of the laws withdrawn amid protests from a section of the farming community. According to trade sources, commodities including paddy, wheat, copra, guarseed, turmeric and maize are being sold on e-NAM by farmers in the four states, using e-NWRs. This assures buyers of the quality specifications.

In other news, Infosys co-founder Nandan Nilekani on Tuesday donated Rs 315 crore to his alma mater, the Indian Institute of Technology, Bombay. With this, his overall contribution to the institute has gone up to Rs 400 crore, as he had earlier donated Rs 85 crore. According to a statement, the donation, which was made to mark 50 years of his association with the institute, is to fund world-class infrastructure, research in emerging areas of engineering and technology, and a deep tech startup ecosystem at IIT Bombay. Nilekani joined IIT Bombay in 1973 for a Bachelor’s degree in electrical engineering. Speaking about the donation, Nilekani said, “IIT-Bombay has been a cornerstone in my life, shaping my formative years and laying the foundation for my journey. This donation is more than just a financial contribution; it is a tribute to the place that has given me so much and a commitment to the students who will shape our world tomorrow.”

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