Category: Business

Apr 17 (BNP): India’s construction sector, valued at around $685 billion in 2025, is projected to grow to $1.2 trillion by 2034, expanding at a CAGR of 6.9 per cent, driven by sustained infrastructure investment and urban development, according to a report released on Friday.

The report by Savills India and Hotelivate said demand for office spaces remains strong, supported by the expansion of Global Capability Centres (GCCs) and growing preference for Grade-A, sustainable workspaces. It also noted that construction costs have risen by 6.4 per cent to 7.6 per cent due to higher mechanical, electrical, and plumbing expenses.

According to the report, retail and residential segments have seen the sharpest rise in construction costs, with increases ranging from 3.8 per cent to 13.9 per cent between 2023 and 2025.

It added that mall construction costs have surged the most due to complex designs, deeper basements, and higher technical requirements. In the residential segment, luxury housing recorded the highest cost increase, followed by mid-income and affordable housing projects.

The report observed that residential demand continues to remain strong, with a growing shift towards premium and quality-focused developments across urban centres.

It further highlighted that rising input costs, wage inflation, and volatility in key raw materials such as steel, cement, and crude oil are impacting project economics. Construction labour wages have increased significantly in recent years, adding to overall expenses.

In the hospitality sector, performance has improved with occupancy levels stabilising at around 67–68 per cent and average room rates crossing ₹9,000. The sector also continues to attract investor interest, with a strong project pipeline and new developments underway.

The report advised developers to focus on efficiency, cost control, and sustainable planning to maintain long-term value and competitiveness in the evolving market.

Apr 17 (BNP): India is planning a major expansion of its nuclear energy capacity, targeting an increase from the current 8.8 GW to 100 GW by 2047, according to the Chairperson of the Central Electricity Authority (CEA).

The roadmap is part of the country’s long-term strategy to strengthen clean energy sources and reduce dependence on fossil fuels. Nuclear power is expected to play a key role in meeting rising electricity demand while supporting India’s low-carbon growth goals.

The CEA Chairperson said the expansion plan is aligned with India’s broader energy transition efforts, which aim to raise the share of non-fossil fuel-based power in the overall energy mix.

He also noted that achieving this target will require sustained policy support, technological progress, and investment participation from both public and private sectors.

Apr 17 (BNP): India is increasingly being recognised as a stable destination for global investment, supported by a market capitalisation of around $4.4 trillion, according to Tuhin Kanta Pandey.

He said the country’s equity markets continue to show resilience, backed by steady economic fundamentals and long-term growth potential. This is helping strengthen investor confidence in India as a reliable capital market.

Pandey added that India’s expanding financial ecosystem and rising participation from both domestic and foreign investors are enhancing its position among major global investment destinations.

Uttar Pradesh: The state has produced 89.26 lakh tons so far, against last year production of 91.10 lakh tons. At present, 6 mills are operational, compared to 22 mills which operated last year on the corresponding date.

Maharashtra & Karnataka: Production has reached 99.3 lakh tons in Maharashtra and 48.10 lakh tons in Karnataka, compared to 80.88 lakh tons and 40.40 lakh tons, respectively, during the same period last year. All the factories in both the states have closed their operations for the main season. However, few mills in Karnataka will also operate in the special season from June/July’2026.

Additionally, some mills in Tamil Nadu will also continue their operations in the special season.

Following table gives state-wise details of sugar production this year vis-à-vis last year:

 As the sugar season nears its close, the industry is seeking an early revision of the Minimum Selling Price (MSP). Rising production costs and weak ex-mill realizations are straining mill cash flows and increasing cane payment arrears. A timely MSP revision, aligned with current cost structures, is essential to restore financial viability, enable prompt farmer payments, and stabilize the market—without any additional fiscal burden on the Government.

Simultaneously, rising crude oil prices and evolving geopolitical conditions highlight the need to accelerate ethanol blending. With an estimated production capacity of around 2000 crore litres (including grain-based), the Government may consider advancing a roadmap beyond E20 towards higher blends such as E22, E25, E27 and E85/E100, alongside faster rollout of flex-fuel vehicles (FFVs) and GST rationalisation to support adoption.

Further, the lack of revision in ethanol procurement prices for sugarcane-based feedstocks and lower allocation to the sector have created a mismatch between installed capacity and domestic offtake, leading to underutilised distillation capacity and inventory build-up. Timely price revision is needed to ensure feedstock parity and provide long-term policy clarity.

In addition, ongoing LPG supply disruptions have impacted food outlet operations, dampening sugar consumption and adding to industry pressures.

Addressing these issues through timely policy measures will help optimise capacity utilisation, strengthen financial stability, safeguard farmer interests, stabilise sugar markets, and support India’s energy security and rural economy.

 

Apr 17 (BNP): Crude oil prices fell more than 2 per cent in futures trade on Friday, as easing geopolitical tensions and expectations of a possible US-Iran agreement reduced concerns over global supply disruptions.

On the Multi Commodity Exchange, crude oil futures for May delivery declined by ₹180, or 2.1 per cent, to ₹8,396 per barrel.

Market sentiment turned weaker following indications of progress toward a potential diplomatic understanding between the United States and Iran. This eased worries over extended supply disruptions in global crude markets.

Analysts said the development led traders to reassess the geopolitical risk premium that had recently supported oil prices, resulting in downward pressure on futures.

Apr 17 (BNP): Aditya Birla Capital has announced that its housing finance subsidiary, Aditya Birla Housing Finance Ltd (ABHFL), has raised ₹2,750 crore through the sale of a 14.29 per cent stake to Indriya Ltd, an entity associated with private equity firm Advent International.

In a regulatory filing, the company said that following the transaction, ABHFL is no longer a wholly owned subsidiary of Aditya Birla Capital. The parent company now holds an 85.505 per cent stake in the housing finance arm.

The board of ABHFL approved the allotment of 12.32 crore equity shares at a price of ₹223.12 per share to Indriya Ltd as part of the deal.

The transaction marks a strategic capital infusion aimed at strengthening the housing finance subsidiary’s balance sheet and supporting its future growth plans.

April 18: Shyam Metalics and Energy Limited announced the successful commissioning of Phase II of its Cold Rolling Mill (CRM) facility for colour coated sheets at its Jamuria plant in West Bengal. The facility, operated by its wholly owned subsidiary, Shyam Sel and Power Limited (SSPL), has commenced commercial production effective 16th April 2026.

Phase II comprises an advanced processing Dual Pot GI cum Galvalume (GL) line with a capacity of 0.15 million tonnes per annum (MTPA), significantly enhancing the Company’s product range and technical capabilities. This expansion marks a critical step towards catering to more demanding and precision-driven applications across industries. With this incremental capacity, the total installed capacity of the CRM facility reached to 0.40 MTPA. This includes the existing Phase I capacity of 0.25 MTPA and the newly commissioned Phase II capacity, further strengthening the Company’s footprint in the value-added steel segment.

With this development, Shyam Metalics is now strategically positioned to cater the solar energy sector, particularly in the manufacturing of mounting structures for solar panels, an area that was previously heavily dependent on imports. By addressing this gap, the Company is actively contributing to India’s vision of self-reliance and domestic manufacturing excellence.

The Phase II expansion also aligns with the Government of India’s Production Linked Incentive (PLI) Scheme – PLI 2, reinforcing Shyam Metalics’ commitment to national initiatives aimed at boosting advanced manufacturing and reducing import dependency.

In addition to renewable energy applications, the enhanced facility will cater to a broader spectrum of high-growth sectors, including automotive and consumer durables/appliances, where demand for high-quality, precision-engineered steel continues to rise and has been primarily import-dependent.

This strategic expansion not only deepens Shyam Metalics’ presence in downstream value-added products but also strengthens its integrated manufacturing ecosystem. With improved product diversification and market reach, the Company is well-positioned to unlock new revenue streams while supporting India’s industrial and infrastructure growth trajectory.

The expanded facility, strategically located in the eastern region of India, offers significant logistical advantages, enabling Shyam Metalics to efficiently serve key demand centres while addressing the region’s supply gap in value-added flat steel products. This Phase II expansion further strengthens the Company’s downstream capabilities and reinforces its position as a leading player in the steel value chain.

Commenting on the expansion, Mr. Brij Bhushan Aggarwal, Chairman and Managing Director, of Shyam Metalics and Energy Ltd., stated:

“The commissioning of Phase II of our Flat Products project is a strategic step towards strengthening our value-added product portfolio and improving overall realizations. With this expansion, we are further strengthening our ability to cater to high-growth, high-margin segments such as solar, automotive and consumer durables.

This phase is expected to drive a better product mix, support margin expansion, and contribute meaningfully to incremental EBITDA over the medium term. Our inclusion under the Government’s PLI Scheme further enhances the overall return profile of the project.

We remain focused on disciplined capital allocation, with a strong pipeline of value-accretive expansions under evaluation and expect optimal ramp-up within the next 10–12 months.”

Apr 17 (BNP): India’s logistics industry is expected to witness strong, sustained growth over the coming decade, with estimates placing its value at around $800 billion by 2030 and close to ₹120 trillion by 2035. The expansion is being driven by large-scale infrastructure development, policy reforms, and increasing digital adoption across supply chains.

A key factor behind this growth is the ongoing capital investment push in transport infrastructure, including highways, rail networks, and dedicated freight corridors. These projects are designed to improve connectivity, reduce transit time, and lower overall logistics costs across regions.

Government initiatives such as the National Logistics Policy (NLP) and PM Gati Shakti programme are also reshaping the sector by improving coordination between departments and streamlining freight movement. India’s logistics cost, currently estimated at 13–14% of GDP, is targeted to gradually decline toward around 8%, enhancing global competitiveness.

At the same time, digital transformation is accelerating efficiency and transparency in supply chains. Platforms like the Unified Logistics Interface Platform (ULIP), e-way bill systems, and RFID-enabled tracking are helping improve real-time visibility, reduce delays, and formalize operations. Industry expectations suggest that up to 60% of the sector could become formalized by 2035.

Demand-side growth is also strengthening the sector, supported by the rise of e-commerce, manufacturing expansion under “Make in India,” and the development of export logistics hubs. These trends are increasing the need for modern warehousing, cold chain networks, and efficient last-mile delivery systems.

With India’s economy projected to expand from around $4.2 trillion in 2025 to nearly $10 trillion by 2035, the logistics sector is expected to play a central role in enabling trade, industrial growth, and consumption across the country.