Latest news with #Crisil
India Gazette
2 hours ago
- Business
- India Gazette
Middle East unrest to significantly impact Indian basmati rice, fertilisers, and diamond sectors: Crisil Report
New Delhi [India], June 20 (ANI): The Indian Basmati rice sector is likely to have a significant impact, weighed down by ongoing uncertainties in the Middle East, according to a recent report by Crisil ratings. Additionally, other sectors such as fertilisers and diamonds, both cut and polished can also witness some impact, but expected to be less than the basmati rice to Crisil report, Iran and Israel accounts for approximately 14 per cent of Indian basmati rice exports in FY25, and it is expected to see limited impact on it due to the ongoing tensions. 'Additionally, India's ability to export to other countries in the Middle East, the US and Europe reduces demand risk. But a prolonged crisis can lead to possible delays in payment from counterparties in these regions, elongating the working capital cycle,' the report added. For domestic diamond polishers, Israel accounts nearly 4 per cent of total diamond exports last year, which makes Israel one of the main trading hubs. However, during the time of conflict, polishers can switch to alternative trading hubs such as Belgium and the United Arab Emirates, with ultimate buyers based in the US and Europe, which will help them to manage any adverse impact on the sector. On the global crude aspect, the uncertainties have impacted global crude oil markets, with Brent hovering in the range of USD 73-76 per barrel (bbl) over the past one week, up from an average of USD 65 per bbl during April-May prolonged and increasing uncertainties can lead to a rise in air/sea freight costs and insurance premiums for export/import-based sectors. (ANI)
India.com
2 hours ago
- Business
- India.com
Mukesh Ambani, Nita Ambani's sons Akash Ambani, Anant Ambani following their father as they….
Ambani family (File) According to a survey conducted by 360 One Wealth (formerly IIFL Wealth) and Crisil has revealed that Mukesh Ambani's sons, Anant and Akash Ambani, are jointly the richest individuals in India. The report also claimed that Anant and Akash Ambani now lead the list of India's richest individuals, with a combined net worth of Rs 3.59 lakh crore. The study included 2,013 Indians who have earned wealth through hard work and dedication. Collectively, their total wealth is around Rs 100 lakh crore which is nearly one-third of India's GDP. The list also includes individuals with a minimum net worth of Rs 500 crore. Mumbai Becomes Hub of Wealth The report also shows Mumbai's growing prominence as India's financial capital. A total of 577 individuals from Mumbai are in the list, holding a collective 40% share of the total wealth. Delhi ranks second with a 17% share, after Bengaluru (8%) and Ahmedabad (5%). The study had considered 143 individuals under the age of 40 who have built wealth through digital ventures. BharatPe co-founder Shashvat Nakrani, at 27 years old, is the youngest individual on the list. Around 161 individuals have a net worth more than Rs 10,000 crore, while 169 have assets between Rs 5,000 crore and Rs 10,000 crore. Big Corporate Wealth Promoters of corporate giants like Reliance Industries, Tata Group, and Adani Group collectively hold assets of Rs 36 lakh crore. The banking, telecom, and aviation sectors are among the most lucrative, with individual wealth in these areas ranging between Rs 7,900 crore and Rs 8,500 crore. The pharmaceutical sector also contributes significantly after financial services and IT. Women account for 24% of India's total wealth, with the pharmaceutical sector leading with 33% participation by women, followed by financial services at 24%. Among women, Isha Ambani became the wealthiest individual on the list.
Time of India
7 hours ago
- Business
- Time of India
Near-term impact of Iran Israel conflict on most Indian firms is expected to be limited, says Crisil
The ongoing uncertainties in the Middle East has not had significant impact on India Inc's global trade, so far. However, if the situation deteriorates, some sectors such as basmati rice could see heightened impact and will require monitoring, while others like fertilisers and diamonds — both cut and polished — may also see some impact, said ratings agency Crisil. "That said, the uncertainties have impacted global crude oil markets, with Brent hovering in the range of $73-76 per barrel (bbl) over the past one week — up from an average of ~$65 per bbl during April-May 2025. While this is still lower than the fiscal 2025 average of ~$78 per bbl, any escalation of tensions, say through disruption of energy supply chains, could result in a further spike in oil prices. If crude oil prices continue to be elevated over longer periods, it could impact India Inc's profits," said Crisil in a media release. It added, "Also, prolonged and increasing uncertainties can result in a rise in air/sea freight cost and insurance premiums for export/import-based sectors, so will bear watching." According to Crisil, India's direct trade with Israel and Iran is minuscule at less than 1% of the total trade involving India last fiscal. While India's major export to Iran is basmati rice, trade with Israel is more diversified, and includes fertilisers, diamonds and electrical equipment. The data with Crisil shows that Iran and Israel accounted for about 14% to India's basmati rice exports in fiscal 2025. Live Events "But because basmati rice is a staple, the impact on demand because of the ongoing tensions is likely to be limited. Additionally, India's ability to export to other countries in the Middle East, the US and Europe reduces demand risk. But a prolonged crisis can lead to possible delays in payment from counterparties in these regions, elongating the working capital cycle," the release stated. For domestic diamond polishers, Israel is mainly a trading hub, accounting for about 4% of the total diamond exports last fiscal. Additionally, about 2% of all rough diamonds imported are from Israel. "Polishers also have alternative trading hubs such as Belgium and the United Arab Emirates, with ultimate buyers based in the US and Europe, which will help them to manage any adverse impact on the sector," said Crisil. As for the fertiliser sector, Israel is a major global producer of muriate of potash (MoP) and was one of the larger exporters to India last fiscal ( about 7% of India's MoP imports). "However, the share of MoP (as a final product or as an ingredient in other fertilisers) remains low at less than 10% of domestic fertiliser consumption. India's ability to source MoP from other countries also lowers the supply risk and will limit any material impact on the sector," the release said. Crisil thinks that higher oil prices will benefit upstream oil companies because it translates to more revenue, while their costs are fixed. For downstream oil refiners, operating margins could get squeezed due to higher input cost as they may have limited ability to fully pass on the same through increase in retail fuel prices. "For specialty chemical companies, about 30% of the operating cost is crude linked. Here, the ability to pass on steep rise in input cost would be limited as the sector is only just witnessing return to normalcy after seeing profitability pressures due to suppressed demand compounded by continued Chinese dumping and inventory correction by suppliers over the past two fiscals," said the ratings agency. It added, "The paint sector could see some pressure on margin as about 30% of its production cost is linked to crude, where competitive intensity could limit the ability to pass on elevated input prices to customers and impact profitability to some extent." For aviation companies, fuel accounts for about 35-40% of operating cost. "Further, the operators will also witness higher fuel cost due to increased travel time on account of airspace closures/diversions. Nonetheless, healthy demand sentiment is likely to provide some cushion to the margins," the release said. About half of the tyre sector's operating cost is crude linked. "As for revenue, 60-65% accrues from the replacement market and the balance from original equipment manufacturers (OEMs). While the tyre makers can quickly pass on input price increases in the replacement market with relative ease, the pass-on normally happens with a lag for OEM sales which could impact margins in the interim," said Crisil. "For flexible packaging and synthetic textile firms, while over 70-80% of production cost is crude linked, the impact of an increase in its price could be moderate due to the improved demand-supply scenario and firm's ability to pass on cost to customers, albeit with a slight lag," the release said. According to Crisil, the near-term impact on most Indian firms is expected to be limited, with low capex intensity and balance sheet strength of companies offering cushion from potential vulnerabilities. "However, a prolonged escalation could aggravate the impact mainly due to rise in oil prices and disruption in supply chains which could stoke inflation," it cautioned.
Time of India
11 hours ago
- Business
- Time of India
Sambhv Steel Tubes IPO to open on Jun 25; sets price band at Rs 77-82 per share
Sambhv Steel Tubes on Friday set a price band of Rs 77-82 per share for its upcoming Rs 540-crore initial public offering (IPO). The initial share sale will open for public subscription on June 25 and conclude on June 27, the company said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo The IPO is a mix of fresh issue of equity shares valued at Rs 440 crore and an offer for sale (OFS) of shares worth Rs 100 crore by promoters. Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes. Sambhv Steel Tubes is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024. Live Events According to a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonnes per annum (MTPA) in FY25 from 8.8 MTPA in FY19. The growth was led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector. Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added. Sambhv Steel Tubes announced that half of the offer size has been reserved for qualified institutional buyers , 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd are the book-running lead managers to the issue. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2. PTI
Economic Times
11 hours ago
- Business
- Economic Times
Sambhv Steel Tubes IPO to open on Jun 25; sets price band at Rs 77-82 per share
Sambhv Steel Tubes on Friday set a price band of Rs 77-82 per share for its upcoming Rs 540-crore initial public offering (IPO). ADVERTISEMENT The initial share sale will open for public subscription on June 25 and conclude on June 27, the company said. The IPO is a mix of fresh issue of equity shares valued at Rs 440 crore and an offer for sale (OFS) of shares worth Rs 100 crore by promoters. Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes. Sambhv Steel Tubes is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024. According to a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonnes per annum (MTPA) in FY25 from 8.8 MTPA in FY19. ADVERTISEMENT The growth was led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector. Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added. ADVERTISEMENT Sambhv Steel Tubes announced that half of the offer size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd are the book-running lead managers to the issue. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2. PTI (You can now subscribe to our ETMarkets WhatsApp channel)
