Micron's $1 billion Semiconductor Plant proposal in India is set to be approved by the government

Wednesday, April 26th 2023

Good Morning ☕

The world is seeing a whirlwind of events across the business, political and military spheres. India's insurance giant LIC has reported a massive 17% growth in its total premium for fiscal 2023, while the Central Bureau of Investigation (CBI) has filed a supplementary charge sheet against Sisodia. In the US, President Joe Biden has launched his 2024 reelection bid, while the JSW Group is reportedly in talks with MG Motor India. On the healthcare front, the Serum Institute has announced plans to double its investment in Biocon, while Glenmark is set to pay USD 87.5 million to settle lawsuits. Meanwhile, 3M has announced its decision to cut 6,000 positions globally, and the world military spend has hit an all-time high of $2.24 trillion.

1. LIC’s total premium for fiscal 2023 grew 17% to ₹2.32 trillion

Life Insurance Corporation of India (LIC) collected a total premium of ₹2.32 trillion for the fiscal year 2022-23, representing a 16.67% growth from the previous fiscal year. This growth rate is the second highest among its listed peers, with HDFC Life leading at 18.83%. LIC continues to hold a market share of 62.58% in terms of premiums collected, and its premium for the individual category exceeds ₹10,000 crore for March 2023, the highest among all life insurance companies. The insurance giant's group single premium grew 21.76% while its individual single premium grew 3.30% and individual non-single premium grew 10%.

2. Micron's $1 billion Semiconductor Plant proposal in India is set to be approved by the government

Micron Technology, the world's fifth-largest semiconductor firm, is reportedly planning to invest $1 billion in a new assembly, testing, marking, and packaging (ATMP) facility in India. The Indian government is said to be close to approving the proposal. Micron currently has 11 manufacturing units in various countries, including the US, China, Japan, and Taiwan. The international OSAT-ATMP market is projected to grow to $42 billion by 2026, with ATMP companies playing an important role in the value chain of chipset manufacturing. The investment in India is expected to raise the country's standing in the global semiconductor industry.

3. CBI files supplementary charge sheet against Sisodia in excise policy scam

The CBI has filed a supplementary charge sheet in the excise policy scam case against former Delhi deputy chief minister Manish Sisodia and others, including Hyderabad-based CA Butchi Babu Gorantla, liquor trader Amandeep Singh Dhall, and private person Arjun Pandey. The charges include criminal conspiracy, along with provisions of Prevention of Corruption Act. It is alleged that the Delhi government's excise policy for 2021-22 to grant licences to liquor traders favoured certain dealers who had allegedly paid bribes for it, a charge strongly refuted by the AAP. The policy was later scrapped.

4. Meet Nikhil Meswani: The Man Whose Salary Surpasses Even Mukesh Ambani's

Nikhil Meswani, an executive director at Reliance Industries and an integral part of Mukesh Ambani's business operations, earns more than Ambani himself. Meswani is in charge of everyday affairs at Ambani's IPL cricket franchise, Mumbai Indians, but his role extends beyond the IPL. He has played a key role in many of the company's major projects, including the Jamnagar refinery, and was instrumental in Reliance's entry into the telecom and retail sectors. Meswani earned ₹24 crores in the 2021-22 financial year, while Ambani has capped his salary at ₹15 crore for over 10 years.

5. US President Joe Biden launches 2024 reelection bid in a promotional video

President Joe Biden has announced his intention to seek re-election in 2024, even though he is already the oldest person to have been elected president of the US. Biden implored voters to let him finish the job he started, insisting that there was still work to be done to give Americans a fair shot and to beat back extremists in the Republican Party. If elected, Biden would face a Republican field that is expected to be dominated by former president Donald Trump.

Trump has emerged as the clear GOP frontrunner and has galvanized Democrats, making it more likely that Biden will receive the Democratic nomination. Biden's announcement came on the fourth anniversary of when he declared his presidential campaign in 2019 on a promise to restore the "soul of America," but a rematch against Trump could prove even more bruising than their initial 2020 battle.

6. JSW Group in talks with MG Motor India and BYD India to pick up stake

JSW Group, a $22 billion conglomerate in India, is reportedly in advanced talks with Indian subsidiaries of Chinese automakers MG Motor and BYD for a foray into the automobile sector. The details of the plan have not been disclosed, but JSW Group is said to be negotiating with multiple car makers. Chinese companies are finding it difficult to secure capital through foreign direct investment as the Indian government is scrutinizing Chinese investment inflows. MG Motor India is among the top 10 carmakers in India and has already put in a new production line for its latest offering, the MG Comet, a mini electric vehicle for urban commute.

7. Serum Institute to double its investment in Biocon subsidiary to $300 mn

Serum Institute of India has doubled its investment in Biocon Biologics, a wholly-owned subsidiary of Biocon India, through a new strategic alliance. Under the new terms, Serum Life Sciences will make an additional equity investment of $150m, adding to the $150m it invested in November 2022, resulting in Serum Institute’s total equity investment in Biocon Biologics amounting to $300m. Biocon Biologics will have access to 100 million doses of vaccines annually together with the distribution rights to Serum Institute’s vaccine portfolio, expanding its product offerings for global markets.

8. 3M to cut 6,000 positions globally to improve cash flow

3M Co plans to cut 6,000 jobs globally as part of its restructuring efforts to focus on high-growth businesses such as automotive electrification and home improvement. The restructuring actions will affect all functions, businesses, and geographies, and are expected to improve margins and cash flow. The move comes as 3M raises prices to offset a hit from surging commodity costs amid consumer cutbacks on discretionary spending due to interest rate hikes. The job cuts are in addition to the 2,500 roles announced earlier this year. 3M shares were up 1.6% in pre-market trade following the announcement.

9. Glenmark to pay USD 87.5 mn to settle lawsuits over a generic drug in US

Glenmark Pharmaceuticals has agreed to pay $87.5 million to three plaintiff groups to settle multiple antitrust and consumer protection lawsuits related to a generic drug in the US. The lawsuits alleged that Glenmark entered an anticompetitive agreement in 2010 to settle patent infringement litigation with Schering Corporation and MSP Singapore Company related to ezetimibe, the active ingredient in Zetia, a drug for the treatment of cholesterol. The company denied each and every one of the allegations against it and said the settlements are not on the basis of it having conceded or admitted any liability or illegality.

10. World military spend hits all-time high of $2.24 trillion

Global military spending hit a new record high of $2.24tn last year, marking a 3.7% increase in real terms, says the Stockholm International Peace Research Institute (SIPRI). The rise was prompted by a U-turn in Europe, where governments boosted capabilities in response to Russia’s all-out invasion of Ukraine, the biggest increase since the end of the Cold War. Finland and Sweden were among the countries that increased their spending the most, while Saudi Arabia boosted its expenditure by 16% to become the fifth-largest spender globally.