Olectra Greentech Limited Provides Clarification on Bid for Electric Buses

Key Takeaways from Olectra Greentech Limited's Clarification:

• Olectra Greentech Limited participated in a bidding process for the supply of 327 electric buses to Himachal Pradesh, which includes 297 units of 9-meter buses and 30 units of 12-meter buses.
• The technical bids were opened on August 24, 2024, and the price bids on October 4, 2024, but the Himachal Pradesh State Road Transport Corporation (HRTC) has not yet declared the least quoted (L-1) bidder.
• Olectra clarified that no negotiations can begin until HRTC declares the L-1 bidder, and being the L-1 bidder does not guarantee an automatic award of the contract.
• Olectra has made all required disclosures in compliance with SEBI (LODR) regulations and is unaware of any undisclosed information affecting its recent stock trading activity.

The Himachal Pradesh State Road Transport Corporation (HRTC) issued two tenders for the outright sale of 297 units of 9-meter electric buses and 30 units of 12-meter electric buses. As an Original Equipment Manufacturer (OEM) of electric buses, Olectra participated in the bidding process, submitting both price and technical bids. The technical bids were opened on August 24, 2024, followed by the opening of price bids on October 4, 2024. The company is currently awaiting communication from HRTC regarding the next steps and the declaration of the least quoted (L-1) bidder.

In response to enquiries about negotiations, Olectra stated that since HRTC has not yet declared the L-1 bidder, no negotiations can commence at this time. The company emphasised that it is unaware of any undisclosed information that could explain recent trading movements and has consistently complied with SEBI (LODR) Regulations, making timely disclosures.

Olectra also noted that even if it is declared the L-1 bidder, this status does not guarantee an award of the Letter of Award (LOA) or contract unless price negotiations are commercially viable for both parties. The company maintains a significant order book of approximately 10,000 buses as of June 30, 2024; therefore, the potential order for 327 buses is not expected to have a material impact on its overall business.

About Olectra Greentech Limited 

Olectra Greentech Limited is an India-based company that focuses on the composite polymer insulator and electric vehicle business. There are three distinct divisions, namely: the Insulator, e-bus, and e-truck divisions. As far as the e-buses are concerned, the company has on offer the K9 (12-meter), K7 (9-meter), and K6 (7-meter), all available for long-distance use with options in seating capacity. The buses are put to use by Olectra in Puri, among other cities. It also makes transmission and distribution composite insulators. The company has more than 1,000 electric buses running commercially in India.

Key Takeaways from Infosys Launch: 

• Infosys launched the "AI Trend Report: How AI is Transforming Industries" in collaboration with the Handelsblatt Research Institute (HRI).
• The report leverages Infosys Topaz, utilising generative AI to analyse AI applications across various industries, including retail, healthcare, agriculture, logistics, and manufacturing.
• Unlike traditional reports, this AI-powered online edition allows users to customise content with options for interactive graphics, summarisation, text shortening, audio conversion, and translation into English.
• This report is the first result of the partnership between Infosys and HRI, incorporating expertise from Wongdoody and the Infosys AI & Analytics team.

The report delivers an in-depth analysis of the potential applications of artificial intelligence (AI) across various industries. It examines AI from two perspectives: the broad economic implications and specific applications in sectors such as retail, healthcare, agriculture, and logistics, along with its role in manufacturing.

Unlike traditional non-editable PDFs, this AI-powered online edition allows users to customise the content according to their preferences. Options include interactive graphics, content summarisation, text shortening for desired reading times, audio conversion, and translation into English. Users can also access a customised dashboard for these features.

This report marks the first outcome of the strategic collaboration between Infosys and HRI, incorporating design and project management expertise from Wongdoody, Infosys' human experience agency, along with the technical expertise of the Infosys AI & Analytics team.

About Infosys:

Infosys is a leading global provider of next-generation digital services and consulting. With a workforce of over 300,000, the company focuses on enhancing human potential and creating new opportunities for individuals, businesses, and communities. Infosys supports clients in more than 56 countries as they undergo digital transformation, drawing on over four decades of experience in managing global enterprise systems. The company specialises in cloud and AI technologies, enabling clients with an AI-first approach and promoting agile digital solutions at scale. Infosys is dedicated to continuous improvement through ongoing learning and skill transfer from its innovation ecosystem and is committed to sustainability and inclusivity in the workplace.

About Handelsblatt Research Institute (HRI):

The Handelsblatt Research Institute (HRI) is an independent research organisation affiliated with the Handelsblatt Media Group. It conducts scientific studies for various clients, including corporations, financial investors, associations, foundations, and government bodies. HRI leverages the expertise of its team of 20 professionals, which includes economists, social and natural scientists, information specialists, and historians, while also integrating journalistic skills in presenting their findings. The institute collaborates with a network of partners and specialists to provide services such as desk research, competitive analyses, and market research.

Key Takeaways from Heranba Organics Private Limited’s Commercial Production Announcement:

• Heranba Organics Private Limited, a wholly-owned subsidiary of Heranba Industries Ltd., has commenced commercial production at its new Sarigam Unit in Gujarat.
• The Sarigam Unit is expected to generate an annual revenue of ₹280 to ₹300 crores.
• The new unit enhances Heranba Industries' production capabilities and strengthens its market position in the agrochemical sector.

Revenue generated through the Sarigam Unit is expected to be approximately ₹280 to ₹300 crores annually. With a 9,000 MTPA capacity, the unit is expected to boost the overall growth of the business, and its operational efficiency will witness a huge take-off.

This development aligns with Heranba Industries' commitment to fostering sustainable growth while creating job opportunities in the region. The establishment of the Sarigam Unit not only enhances the company's production capabilities but also reinforces its dedication to meeting the increasing demand for its products in the market.

Commenting on the announcement, Mr R K Shetty, Managing Director, Heranba, said, “This Commercial Production will generate additional revenue for our Company. This is in line with our commitment and promises made in the past. This commencement of commercial production is a recognition of Heranba’s established track record, healthy accruals and resiliency of the business model. Our continued growth trajectory shows the strong and resilient DNA that we are built on. We are dedicated to accelerate revenue growth and to improve productivity in order to achieve significant margin expansion, and we continue to view FY25 as a crucial acceleration point in Heranba's growth trajectory. We remain focused in delivering better services thereby benefiting all the stakeholders.” 

About Heranba Industries Limited ("Heranba")  

Heranba is a prominent agrochemical company in India, dedicated to enhancing crop productivity and promoting public health. With a focus on global well-being, Heranba specialises in the production of synthetic pyrethroids and their intermediates. The company operates five manufacturing facilities across India, employing approximately 1,190 people. Heranba maintains an extensive business network both domestically and internationally and possesses significant expertise in key chemical reactions at a commercial scale.

Key Takeaways from the Acquisition

• HEG Limited has invested Rs 248.62 crore to acquire an 8.23% stake in GrafTech International Ltd., a leading global manufacturer of graphite electrodes.
• The investment was made through secondary market transactions under the Overseas Portfolio Investment scheme.
• GrafTech’s business is directly aligned with HEG’s core operations, focusing on graphite electrode production for steel and metal industries.

This investment is worth Rs 248.62 crore and has been filed with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934.

GrafTech International Ltd. is a globally recognised manufacturer of graphite electrodes, which is crucial for electric arc furnace steel production and other metal processing. The market cap of the company is 416.61 million USD. HEG’s investment reflects its strategic interest in expanding its portfolio through international investments. 

In its regulatory filing with BSE and NSE, HEG also emphasised that any further purchases of GrafTech shares would require board approval.

About GrafTech International Limited

GrafTech International Limited is a leading manufacturer of premium graphite electrode products, vital for producing electric arc furnace steel and other metals. The company operates low-cost, ultra-high-power graphite electrode manufacturing facilities, including three of the largest in the world. As the only major producer with substantial vertical integration into petroleum needle coke, GrafTech benefits from enhanced product quality and cost efficiency.

About HEG Limited

HEG Limited is a leading Indian manufacturer and exporter of graphite electrodes, operating the world's largest single-site integrated graphite electrode plant. The company makes electrodes of Ultra-High Power (UHP), High Power (HP) and Regular Power (RP), with different lengths and diameters. The HEG specializes in Graphite Electrodes, Power Division, and carbon specialty products, making it a prime player in the highly competitive sector characterized by high-tech and entry barriers. The notable fact is that HEG has been the last major entrant into the global graphite electrode market and came into inception only in 1976.