⚡️Siemens promises to delivery electric trains, Microsoft plans to cut ~11,000 jobs

🤩 The Good

Siemens signs a ₹26,000 crore deal with the Indian Railways, agreeing to supply and service freight trains. Termed as the biggest locomotive deal in history, the contract promises to deliver 1,200 electric locomotives and provide servicing for 35 years. While noting the strength of the Indian Railways, Siemens' representatives said they were also looking at other train contracts in India. After the contract was signed, Siemens’ shares rose 3.6%.

Microsoft invests in Hyderabad-based HR software unicorn, Darwinbox. Singapore-based Darwinbox, which was valued at $1B+ in early 2022, provides an HR management SaaS to help companies retain workers. Microsoft made an equity investment of an undisclosed size as an extension of Darwinbox’s Series D round. The investment comes after Microsoft CEO Satya Nadella’s India trip earlier this month, and is another addition to the string of investments and initiatives Microsoft has launched in India.

ITC plans to acquire a 100% stake in Yoga Bar. The FMCG giant said that it will acquire Sproutlife Foods Pvt. Ltd., maker of the health-snack Yoga Bar, over 3-4 years. In a filing made with the Bombay Stock Exchange, ITC said that it will invest ₹175 crore to acquire a 39.4% stake by February 15, 2023, and another ₹80 crore for a 47.5% stake by March 31, 2025. The remaining 52.5% will be purchased based on pre-agreed valuation criteria.

👿 The Bad

Indian CEOs plan to reduce operating costs while trying to avoid job and salary cuts in 2023. According to PwC’s Global CEO Survey released at the World Economic Forum, cost-cutting is the first priority for CEOs as 73% of them expect economic growth to decline. However, 85% of Indian CEOs indicated that despite a difficult year ahead, they do not plan to reduce headcount or compensation and will instead target cutting operating costs. With over 1,600 tech employees being laid off per day on average in 2023 globally, it’ll be interesting to see how things play out.

🤔 Wait-and-Watch

India may manufacture 50% of all iPhones by 2027. Previous predictions indicated that Apple is expected to shift 25% of its iPhone production to India by 2025. As China’s Covid-19 debacle spurs supply chain diversification by Apple, India may officially dethrone China as the largest iPhone producer. The recent purchase of Wistron Corp’s local plant by the Tata Group is suggestive of Apple’s shift in strategy.

Chinese automaker BYD is preparing a strong push into India's electric vehicle industry, hoping to capture 40% of the market by 2030. BYD joins a rush of international automakers vying for a larger portion of the Indian market which has been deemed the world's fourth-largest auto market. The India Auto Expo 2023 saw electric vehicles take centre stage, with more than 70 domestic and international automakers showcasing their models.

BharatPe cofounder Bhavik Koladiya sues Ashneer Grover, seeking to reclaim his shares in the company. After quitting BharatPe in August 2022, Koladiya has filed a case against the firm and Ashneer Grover. According to reports, Koladiya held a 30.21% stake in the company which he had to relinquish after being convicted for credit card fraud in the US. The shares were allegedly sold to Grover and others. However, Koladiya subsequently claimed that he had signed a deal under which he was supposed to get the shares back. The case will be heard on January 18.

🌎 International

Twitter’s $13B debt looms over Elon Musk as the first interest instalment becomes due by January-end, as per sources. The debt, which was used to fund Musk’s $44B takeover of Twitter, requires the social media platform to pay ~$1.5B in annual interest payments. The former world’s richest person faces unpleasant options in dealing with it, ranging from bankruptcy proceedings to selling more Tesla shares.

Microsoft plans to ~11,000 jobs, or ~5% of its staff, according to sources. According to an analyst, the figure may even be higher. The company employees 2,20,000+ people and has a market value of $1.78T.

China’s 2022 economic growth falls to 2.9%, making it the worst it has been in 50 years. With a Q4 that was hit hard by strict Covid-19 curbs and a property market slump, China’s GDP growth fell short of the official target of “around 5.5%” and slowed significantly from 8.4% in 2021. Beijing's relaxation of stringent Covid-19 protection measures has boosted expectations of an economic revival, but rising cases may lead to a tough start to 2023.

Iran and Russia are working together to issue a new gold-backed stablecoin. Hoping to establish it as a means of payment in international trade, the cryptocurrency would enable cross-border transactions and reduce reliance on the US dollar. Russian lawmakers stated that the joint stablecoin project would only be possible once the digital asset market is fully regulated in Russia, which may begin in 2023.

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