Warren Buffett's Firm Exits Paytm, Adani Denies Link To Tunnel Collapse And Other Stories You Can't Miss From The Weekend

Hon Hai’s $1.6 Billion Expansion in India

Hon Hai Precision Industry Co., known as Foxconn, is planning a significant expansion in India with a $1.6 billion investment. This move is part of a broader strategy to diversify production away from China amid geopolitical tensions and the U.S.-China trade war. The investment will be made over a period of 10 years and is expected to create around 100,000 jobs. Foxconn, a major supplier for Apple, is looking to make India a key global manufacturing hub. The expansion will likely boost India’s electronics manufacturing sector and is in line with the Indian government’s push to attract foreign investment in its manufacturing sector.

Automobile Price Hikes in January

Leading automobile manufacturers Maruti Suzuki, Mahindra & Mahindra and Audi India have announced price hikes across their product range starting January. The decision is driven by rising input costs and the need to offset the impact on their margins. Maruti Suzuki, India’s largest carmaker, stated that the cost of vehicles continues to be adversely impacted due to inflation. Similarly, Mahindra & Mahindra cited increased commodity prices and other input costs as reasons for the hike. Audi India also announced a price increase of up to 1.7% across its entire model range. This move reflects the broader trend in the auto industry where manufacturers are adjusting prices to manage profitability in a challenging economic environment.

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Berkshire Hathaway Exits Paytm

Warren Buffett-owned Berkshire Hathaway has exited its investment in digital payments major Paytm. The exit comes as Paytm’s shares have significantly underperformed since its initial public offering (IPO). Berkshire Hathaway had invested in Paytm in 2018, marking its first direct investment in an Indian company. The exit reflects the challenges faced by Paytm in the competitive Indian digital payments market, which includes rivals like Google Pay and Walmart-owned PhonePe. Paytm’s performance post-IPO has been a concern for investors, with the company struggling to turn profitable amid high marketing and promotional expenses.

Adani Group Denies Involvement in Uttarakhand Tunnel Collapse

The Adani Group has issued a statement denying any involvement in the construction of a tunnel that collapsed in Uttarakhand. The clarification came after social media speculation linked the group to the incident. The group emphasised that neither it nor its subsidiaries had any direct or indirect association with the tunnel’s construction. The statement was in response to insinuations on social media that the Adani Group should be held accountable for the collapse. The tunnel, part of the Char Dham project, was being built by Navayuga Engineering Company, a Hyderabad-based firm with no apparent association with the Adani Group.

MapmyIndia’s ₹500 Crore Fundraise Plan

MapmyIndia, a homegrown provider of digital maps and location technologies, has announced its plan to raise ₹500 crore through a Qualified Institutional Placement (QIP). The board of CE Info Systems, which operates MapmyIndia, approved the fundraising plan, subject to shareholder and statutory approvals. The company aims to issue equity shares for the fundraise, which will be used to fuel its growth and expansion plans. MapmyIndia’s move to raise funds through equity dilution reflects its strategy to capitalize on the growing demand for digital mapping and location-based services in India and globally. The company’s technology is widely used in various applications, including automotive navigation, logistics, and urban planning.

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