News in Numbers: Mahindra seeks board approval for Rs800 crore investment in EVs



What is it? The drop in 30-share Dow Jones, the benchmark share index in the US, on Friday—the largest single-day drop for this index in the Donald Trump presidency, which has just entered its second year.

Why is it important? After a period of sustained, euphoric rise, the Dow exhibited a fragility, which some partly attributed to the result of rising too far, too fast. In a CBS interview recorded on Friday but broadcast on Sunday, Janet Yellen, the outgoing chairman of the US central bank, said this about stocks and real estate: “Well, I don’t want to say too high. But I do want to say high.”

Tell me more: The weakness seen in the Dow was also seen in many markets across the world. At home, a day after a Budget that reintroduced long-term capital gains tax, the benchmark BSE Sensex fell 2.3%.

Rs800 crore

What is it? The quantum of investment in electric vehicles for which Mahindra & Mahindra has sought approval from its board of directors, according to managing director Pawan Goenka. This comes on top of the Rs600 crore that Mahindra has invested in electric vehicles.

Why is it important? Carmakers are putting the pieces for an imminent shift to electric vehicles, with this Central government aiming for all new vehicles being sold in 2030 to be running on electric technology. In India, Mahindra has been the first mover, buying Reva in May 2010 and also being one of the two companies to bag the first sizeable order from the government.

Tell me more: In the same interview, Goenka said the electric milestone will lead to a churn in the Indian industry at the very top, and that leaders won’t remain leaders. In the 10-month period to January, Mahindra sold 200,561 passenger vehicles, of which 94% were utility vehicles. By comparison, in the 9-month period to December, market leader Maruti Suzuki sold 1.06 million passenger vehicles.

$3 billion

What is it? The total net profit reported by Amazon for 2017. This is an increase of 25% over 2016, and comes on the back of revenues surging 31% to $178 billion.

Why is it important? It illustrates just how much financial strength Amazon has in order to absorb losses to win new markets, as it is currently trying to do outside the US, including in India. In 2017, 30% of its revenues came from international markets, where it also lost $3 billion. But with the American market and Amazon Web Services growing fast and making money, it can keep channelling more capital for new market share.

Tell me more: In India, Amazon has been involved in a bruising battle with Flipkart. On Friday, it was reported that Flipkart posted a net loss of Rs8,771 crore in 2016-17, a year-on-year increase of 68%.


What is it? The number of indices launched on Saturday to track sentiment among micro and small enterprises (MSEs). The indices, the first of their kind for the MSE sector in India, have been jointly developed by Crisil and Sidbi.

Why is it important? The state of MSEs has been a cause of concern, and the new indices will add a data dimension to this set. According to the 2013-14 Economic Census, there were 45 million non-agricultural establishments in India, of which 43 million establishments had one to five employees.

Tell me more: CriSidEx, a composite index, is based on a diffusion index of eight parameters and will measure MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive). It will have two sub-indices, one for the “survey quarter” and, in time, another for the “next quarter”.


What is it? The economy rate registered by Indian bowlers in the U-19 cricket world cup one-day tournament, which India won for the fourth time on Saturday.

Why is it important? India put in an exceptional bowling performance, which saw them not only choke batsmen from scoring, but also take all 10 opposition wickets in all their six matches, at an average of 39 overs per game. This is only the second instance of a team picking up 60 wickets in the tournament’s history.

Tell me more: India’s Anukul Roy ended up as the joint highest wicket-taker in the tournament. He was one of the three bowlers to pick up 14 wickets, but at a far superior average, economy rate and strike rate than the other two.livemint