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Tag: Telangana

  • Foxconn’s Telangana Plant Faces Rare Earth Shortage, Apple AirPods Production Impacted

    According to persons with knowledge of the situation, Foxconn‘s Telangana facility has been unable to produce Apple AirPods because of a dysprosium scarcity brought on by China’s crackdown on the export of rare earth metals.

    A little over forty-five kilometres from Hyderabad lies the Foxconn Interconnect Technology (FIT) facility at Kongara Kalan. FIT is a major subsidiary of Hon Hai Technology Group (Foxconn), a multinational electronics contract manufacturer based in Taiwan that is listed on the Hong Kong Stock Exchange.

    According to the Apple vendor, there has been no interruption in production. In April of last year, Apple started producing AirPods at the India facility as part of a larger plan to diversify production away from China. Neodymium, dysprosium, and other rare earth metals are present in the earphones. China and other countries mine neodymium, which is used as a magnet.

    What Caused the Rare Earth Shortage at Foxconn?

    According to one of the individuals quoted in a news report, Foxconn alerted the Telangana government about the supply problem. According to various media reports, the Telangana government then brought up the issue with the Department for Promotion of Industry and Internal Trade (DPIIT).

    The individual stated that Foxconn has requested assistance from the state government in order to have the end-user certificate (EUC) verified and attested by central ministries. The EUC confirms the intended purpose and recipient of products, particularly those that could be abused or diverted.

    Another stated, “As part of the process, Foxconn received the end-user certificate from the Chinese embassy and the Ministry of External Affairs.” Following that, Foxconn’s supplier applied to the Chinese authorities for approval of exports of dysprosium. However, the (Chinese) government has not yet approved it; thus, it is still waiting.

    The provider will export the rare earth metal after that is finished. Apple didn’t answer any questions. “There is no disruption to production,” Foxconn stated, adding that it “has no comment on the issue.”

    How the Supply Chain Bottleneck is Affecting Apple AirPods Production?

    Foxconn and Tata Electronics are two of Apple’s main suppliers in India. Apple’s largest contract manufacturer worldwide is Foxconn. An industry official stated, “The Foxconn AirPods plant did experience a production slowdown, but it appears to have improved since then.” “The company is currently handling the situation, but the metal supply chain is a little longer.”

    The second individual cited previously stated, “The Foxconn logistics team is anticipating approval by the end of this month.” ” The application must be approved within 45 to 50 days of the date of submission. Before they receive the extra material, Foxconn is extending the product cycle by using whatever rare earth metals and dysprosium they currently have on hand.

    China’s Export Curbs and Their Global Impact on Electronics

    In response to US President Donald Trump’s tariff threats, China put seven types of medium and heavy rare earths—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items—on an export control list early in April.

    The India Cellular and Electronics Association (ICEA) advocacy group told the government that the restrictions were causing delays and cost inflation, according to an ET story on July 18. Foxconn reportedly recalled more than 300 Chinese engineers from its iPhone manufacturing facilities in India earlier this month, allegedly at Beijing’s request.

    At the time, experts stated that although Taiwanese professionals could potentially replace Chinese engineers, machinery and metals were the main cause for concern. They have stated that it is more difficult to maintain operations when those are curbed.

  • AWS will Construct Data Centres in Telangana at an Investment of INR 60,000 Cr

    Amazon Web Services (AWS) has reportedly agreed to investing INR 60,000 Cr (about $7 billion) to establish data centres in Telangana, which would significantly strengthen the state’s IT economy. With plans to invest an additional INR 60,000 Cr, AWS will be significantly growing its data facilities in Hyderabad. As a result, the Hyderabad AWS region will be crucial to AWS’ future expansion of cloud services in India, including AI, a chief minister’s (CM) office official told a major media house. The news report further states that AWS asked the state authorities for a second piece of land for the expansion plans, and the government granted the request.  Following a meeting with Amazon executives on the outskirts of the World Economic Forum’s annual summit in Davos, Switzerland, a delegation led by Chief Minister Revanth Reddy and State Industries Minister D Sridhar Babu made the commitment.

    Telangana Chief Minister praised the significant investment decision, saying the government is thrilled that international companies like Amazon are becoming more confident in the state and making larger investments than ever before. The past year’s efforts have really paid off, he added.

    Tillman Global Holdings and Blackstone Following the Footsteps of AWS

    In addition to AWS, Tillman Global Holdings and Blackstone also committed INR 20,000 Cr to establishing data centres in Telangana alone. Blackstone agreed to invest INR 4,500 Cr to build a 150 MW data centre in Hyderabad, while Tillman Global Holdings, a US-based company, will invest INR 15,000 Cr to build a 300 MW data centre in Hyderabad. Telangana has signed agreements totalling INR 80,000 with the three businesses. The most recent development occurs five months after Amazon revealed plans to construct a new, hyperscale data centre in Hyderabad, which is reportedly essential for services enabled by machine learning (ML) and artificial intelligence (AI).

    AWS Network in the State of Telangana

    According to reports, Amazon also revealed plans to invest an extra $2 billion in Telangana in September of last year in order to increase the state’s capacity for data centres. AWS has invested about $1 billion in Telangana and currently runs three data centres there. AWS is actively growing its footprint in the nation. For more than INR 450 Cr, it allegedly purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group in December of last year with plans to construct a hyperscale data hub. In addition to Amazon, several major IT companies are constructing data centres in the nation. Google and real estate developer Anant Raj inked a memorandum of understanding (MoU) last year to provide cloud computing services and data centre infrastructure to businesses. Additionally, Oracle announced in May of last year that it intends to treble its expenditures in India, concentrating on data and artificial intelligence.

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  • Amazon Launches Community Development Initiatives in Meerkhanpet Village, Telangana

    The completion of community development projects in Hyderabad’s Meerkhanpet, Kandukur Mandal, which is a part of the Rangareddy district, was announced by Amazon Web Services (AWS) India. The local community received the freshly rebuilt facilities for a health sub-centre and self-help group (SHG) resource centre, a public park, and a water purification system. In addition to local ward members and leaders, the new initiatives were launched in front of dignitaries such as Sabitha Indra Reddy, a member of the Telangana Legislative Assembly; Sergio Loureiro, VP of Global Data Centre Operations at Amazon Web Services (AWS); Saji P.K., Director of Data Centre Operations – Asia-Pacific, Middle East, and Africa at AWS; and Aditya Chowdhry, Director of Data Centre Operations – India at AWS.

    Corporates are the Key Drivers: Reddy

    According to Sabitha Indra Reddy, corporations play a crucial role in fostering robust community development that aims to improve both the quality of life and economic progress. Amazon has continuously made a commitment to strengthening Telangana’s local communities through a number of development projects that have shown promise. The administration anticipates that all facets of the village’s inhabitants will significantly benefit from the new initiatives.

    The village panchayat owned the property on which the recently opened public park was built. The park has a running track, a children’s play area, and an open gym. Through an automated water dispensing equipment, the RO water purifier system will make drinking water easy and affordable for the community, removing the need for outside vendors.

    The renovated health sub-centre, which has a larger waiting area, an in-patient room for short-term treatments, and a medical consultation room, will serve the community’s basic healthcare needs. There are now two storage rooms, a sizable meeting room, and newly constructed restrooms in the SHG resource centre. The local women’s self-help groups will utilise it for meetings and as a place to work together on business ventures.

    Other Initiatives by Amazon

    Along with these projects, Amazon has also planted avenues for Meerkhanpet’s village roads and installed solar lamps. In addition to renovating the Zilla Parishad High School in Meerkhanpet and building a community library, Amazon also established an Amazon Think Big Space there in 2022, which aims to promote STEM education for kids.

    These new projects in Telangana supplement the numerous projects that Amazon has already carried out in the Rangareddy district of the state, including the opening of Think Big Spaces in several locations throughout the district, including Nednur, Meerkhanpet, and Kandukur mandals, and the refurbishment of government schools, Anganwadi centres, healthcare facilities, and hospitals.

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  • In Telangana, Lenskart Intends to Construct the Biggest Eyewear Production Plant

    With an estimated INR 1,500 crore in investment, IPO-bound Lenskart intends to establish its largest eyewear manufacturing facility in Telangana. On December 9, 2024, state IT and industries and commerce minister Duddilla Sridhar Babu posted on X that the Gurugram-based eyeglasses company has signed a memorandum of understanding (MoU) with the Telangana government to develop the facility in Fab City located at Raviryala village in Maheshwaram mandal of Rangareddy district.

    With an approximate expenditure of INR 1,500 crore, Lenskart would establish the largest eyewear manufacturing facility in the world in the state of Telangana. According to Babu’s post on X, the plant will manufacture eyeglasses, lenses, sunglasses, accessories, and other goods for the Indian market in addition to exporting to other Southeast Asian and Middle Eastern countries.

    Locking the Land

    The facility will be built in Fab City, where land has already been selected and will be given to the business this week, Babu continued. There are rumoured talks on setting up an R&D plant, and the plant will generate about 2,100 jobs. Babu stated, “This is evidence of the state’s policy that guarantees speed and ease of business for companies.”

    Lenskart was worth $5.6 billion this year after a fund run by the big American financial services company Fidelity raised its value. According to the most recent valuation of the business as of September 30, this indicates a 12% increase in the firm’s fair worth in Fidelity’s books. According to reports, Lenskart generated $1 billion in income annually for the current fiscal year. Temasek, Singapore’s state-owned investment firm, and Fidelity contributed $200 million to Lenskart’s secondary investment in June of this year. Secondary sales provide a means of paying back early investors when new companies’ value increases.

    In this financing, the company managed by Peyush Bansal was valued at roughly $5 billion. In June of last year, the company raised $100 million in a fundraising round that valued it at $4.5 billion. With about $1 billion in money raised over the last two years, Lenskart is among the biggest growth-stage financings in the world.

    Lenskart on Expansion Spree

    While expanding quickly throughout Asia, Lenskart is still expanding its market share in India. Its distinctive click-and-mortar business strategy is upending the eyewear market by providing a multi-channel consumer experience through mobile apps, online platforms, and physical stores. Currently, the corporation operates over 2,500 outlets, with 2,000 of those being in India.

     Delhi-based Lenskart faces competition from companies like Warby Parker, Specsmakers, Vision Express, Titan Eyeplus, and the Italian eyewear giant Luxottica Group, both domestically and internationally.

    In order to expand its business and obtain access to new technology, the corporation has also been making acquisitions. These include businesses like Tango Eye, a firm focused on computer vision and artificial intelligence. In 2022, Owndays, a Japanese brand, joined the Lenskart group in an estimated $400 million purchase.

    Telangana Gig Workers Demand State-Owned Ride-Hailing Platform
    The gig workers’ union in Telangana is urging the government to launch a state-run ride-hailing service to ensure fair pay and improved working conditions.
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  • Gig Workers’ Union in Telangana Wants a Government-Run Ride-Hailing Service

    To offer an alternative to commercial platforms, the Telangana Gig and Platform Workers Union (TGPWU) has demanded the creation of a government-run ride-hailing app. Additionally, it called on the government to establish a Welfare Board to provide equitable salaries, social security benefits, and open fare regulation, as well as to enact legislation to safeguard the rights of gig and platform workers. 

    Shaik Salauddin, the founder and president of TGPWU, urged the state government to give the Telangana Gig and Platform Workers (Rights and Welfare) Bill, 2024, top priority in its drafting and introduction. According to him, the bill would establish a precedent for the protection and empowerment of gig workers nationwide and serve as a model for other states. According to him, the Telangana Congress government will set an example by establishing a strong and welcoming structure to guarantee gig and platform workers stable incomes.

    Applauding Rahul Gandhi’s Letter to CM

    He praised Rahul Gandhi’s letter to Chief Minister A. Revanth Reddy, in which he urged him to enact a comprehensive policy for gig and platform workers, in a statement released on November 20. This development occurs one month after the labour and employment ministry was reported to have initiated the development of a social security framework for contract workers, which is scheduled to be implemented in early 2025.

    Furthermore, in September, the Ministry of Labour and Employment urged platform aggregators to register their employees on the e-Shram portal. Upon successful registration, gig and platform workers will be eligible for important social security benefits. Consequently, it is important to mention that the working conditions of contract workers in India have been rated as “zero” by Fairwork in the ratings of ride-hailing companies Ola and Uber, as well as logistics startup Porter.

    Drivers Protesting Against Ride Aggregators

    The strikes against private ride-hailing services like Ola and Uber have been occurring around the nation on a frequent scale regarding various issues. Drivers of cab aggregators Ola and Uber, for example, went on strike in Chennai in October, calling for pricing regulation and a ban on bike taxi services, which they say are undermining their income.

    Additionally, they were looking for a solution to the problem of these aggregators charging exorbitant charges, which they say are hurting their ability to make a living. Before that, in August, auto and taxi drivers in Delhi NCR went on strike for two days to express their disapproval of app-based taxi services like Ola and Uber. They stated that the prevalence of these private apps has negatively impacted their livelihoods by reducing traditional drivers’ income and clientele.

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  • The State of Telangana’s New MSME Policy Assists Female Entrepreneurs

    Telangana has made significant progress in the direction of encouraging female entrepreneurs through the implementation of its MSME policy, which was recently unveiled. According to the most recent figures, the state has 58,644 women entrepreneurs who have registered their businesses on the Udyam portal of the Centre. In Telangana, which is home to more than 1.88 crore women, this essentially amounts to 3.1 women entrepreneurs for every 1,000 women in the state.

    With a state of affairs in October 2022, the NITI Aayog’s study on women entrepreneurs places Telangana at the third spot on the list. 7.85 percent of micro, small, and medium-sized enterprises (MSMEs) were held by women. West Bengal was at the top with a percentage of 23.42%, while Tamil Nadu had a percentage of 10.37%.

    “The new MSME policy in Telangana marks a pivotal moment for women entrepreneurs. It opens up a world of possibilities, empowering us to pursue our ambitions with renewed confidence. This initiative provides essential resources, financial backing, and mentorship opportunities tailored specifically for women-led businesses. With this support, we can expand our ventures and enhance our offerings, ultimately reaching more families in our communities. It’s truly inspiring to see a government recognise the vital contributions that women make to the economy and society at large. This policy isn’t just about financial assistance; it represents a commitment to creating an inclusive environment where women can thrive,” said Akanksha Sharma, CO-Founder & CEO, CITTA.

    MSMEs Led by Women in India

    With 12.39 million women-led businesses out of a total of 60.84 million micro, small, and medium-sized companies (MSMEs), women-owned MSMEs accounted for 20.37 percent of all MSMEs on a national scale. This, however, indicates that the majority of these businesses owned by women are very small, and the majority of them fall into the category of micro firms. What’s more, the majority of them are run by a single individual.

    Only 17 percent of these kinds of enterprises had employees, and ninety-five percent of those who did have employees had five or less employees. The report continues to suggest that the proportion of women-owned businesses is reduced as the size of the enterprise increases.

    Obstacles Faced by Female Entrepreneurs

    According to Dr. Anupama Panduru, who serves as the Chairperson of the Indian Women Network (IWN) Telangana for the CII, 93.6% of the women entrepreneurs in the state are operating in the nano and micro segments. The manufacturing industry is home to a large number of female entrepreneurs; nevertheless, there are a number of obstacles that must be overcome. These obstacles include the high cost of entrance into the industry as well as necessities such as subsidies, worker accommodations, and specialised labour.

    K. Rama Devi, the Chairperson of ALEAP WE-HUB, pointed out that maintaining a business continues to be a difficulty for women entrepreneurs, despite being able to gain access to financial resources and experiencing an overall improvement in conditions. The majority of these businesses that are managed by women are unable to expand and thrive in such a competitive market because they lack the marketing strength necessary to sell their products or services.

    The state government was approached by CII-IWN with a number of recommendations, including an industrial park strategy, the necessity of worker housing, the necessity of subsidies to lower the cost of starting up business for women entrepreneurs, and access to a pool of skilled labour.

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