A new IFC investment will help address critical infrastructure gaps, facilitate trade, and boost access to renewable energy in Asia and Africa, helping support job creation, foster GDP growth and tackle significant challenges such as food poverty, supply chain disruptions, and climate change.
IFC is investing $50 million in equity to bolster A.P. Moller Capital’s $1 billion Emerging Markets Infrastructure Fund II (“EMIF II”), joining forces with a consortium of global partners.
Approximately 50 per cent of the fund will be invested in each of Africa and South and Southeast Asia. Approximately 60 percent of the fund will focus on onshore transport infrastructure (ports and storage, roads and rail, warehouses and distribution), promoting job creation and improving competitiveness. The remaining 40 per cent will be directed towards renewable energy, as well as distribution infrastructure.
“This partnership is an excellent opportunity to further our ethos of ‘doing well while doing good’ as we look to increase sustainable investments in green energy and transport in high growth markets in Asia and Africa,” said Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital. “We have made it a priority to work with partners who are as invested as we are to build sustainable businesses that seek to support society through economic and social development.”
The fund is also committed to mitigating climate change, with a target to reduce greenhouse gas emissions by at least 25 per cent in its transport infrastructure assets.
Transport contributed approximately 25% of global energy-related greenhouse gas emissions in 2022 and is one of the fastest-growing sources of emissions. Meanwhile, a recent report by IFC and the International Energy Agency underscored the need for emerging markets to commit $2.8 trillion annually to clean energy by the early 2030s – tripling current investment levels – to align with the Paris Agreement.
Emerging economies have typically suffered from chronic underinvestment in their transport networks, hampering their socio-economic development. Meanwhile, persistent underinvestment means that despite accommodating more than half of the world’s population in 2022, Africa, Southeast Asia and South Asia together represent only 16 per cent of the world’s total primary energy consumption.
Over the last decade, IFC has committed and mobilised over $10 billion to finance sustainable transport projects spanning ports, shipping, rail, logistics, and urban transit in emerging markets. Since 2010, IFC also deployed $12 billion from its own account and mobilised an additional $20 billion for energy projects in these markets. In addition, IFC has financed over 22 gigawatts of renewable energy, pioneering commercially viable business models in the process. The agreement is also aligned with the World Bank Green, Resilient and Inclusive Development (GRID) agenda.
Remittances to low- and middle-income countries (LMICs) grew an estimated 3.8% in 2023, a moderation from the high gains of the previous two years. Of concern is the risk of decline in real income for migrants in 2024 in the face of global inflation and low growth prospects, according to the World Bank’s latest Migration and Development Brief released recently.
The United States continued to be the largest source of remittances. The top five remittance recipient countries in 2023 are India ($125 billion), Mexico ($67 billion), China ($50 billion), the Philippines ($40 billion), and Egypt ($24 billion). Economies where remittance inflows represent substantial shares of gross domestic product (GDP) – highlighting the importance of remittances for funding current account and fiscal shortfalls – are Tajikistan (48%), Tonga (41%), Samoa (32%), Lebanon (28%), and Nicaragua (27%).
In 2023, remittance flows to LMICs are estimated to have reached $669 billion as resilient labor markets in advanced economies and Gulf Cooperation Council (GCC) countries continue supporting migrants’ ability to send money home.
By region, remittance inflows grew for Latin America and the Caribbean (8%), South Asia (7.2%), East Asia and the Pacific (3%), and Sub-Saharan Africa (1.9%). Flows to the Middle East and North Africa fell for the second year, declining by 5.3% mainly due to a sharp drop in flows to Egypt. Remittances to Europe and Central Asia also fell by 1.4% after gaining more than 18% in 2022.
Based on the trajectory of weaker global economic activity, growth of remittances to LMICs is expected to soften further to 3.1% in 2024. Driving the moderated forecast are a slowing economic growth and the prospect of weaker job markets in several high-income countries. Additional downside risks include volatile oil prices and currency exchange rates, and a deeper-than-expected economic downturn in high-income countries.
“During crises, migrants have weathered risks and shown resilience to support families back home. But high inflation and subdued global growth is affecting how much money they can send. Labour markets and social protection policies in host countries should be inclusive of migrants, whose remittances serve as a vital lifeline for developing countries,” said Iffath Sharif, Global Director of the Social Protection and Jobs Global Practice at the World Bank.
According to the Bank’s Remittances Prices Worldwide Database, remittance costs remain persistently high, costing 6.2% on average to send $200 as of the second quarter of 2023. Compared to a year ago, sending money to all regions was more expensive, with the Middle East and North Africa being the exception. Banks continue to be the costliest channel for sending remittances (with an average cost of 12.1%), followed by post offices (7%), money transfer operators (5.3%), and mobile operators (4.1%).
“Remittances are one of the few sources of private external finance that are expected to continue to grow in the coming decade. They must be leveraged for private capital mobilisation to support development finance, especially via diaspora bonds. Remittance flows to developing countries have surpassed the sum of foreign direct investment and official development assistance in recent years, and the gap is increasing,” said Dilip Ratha, lead economist and lead author of the report.
A special section of the Brief describes how diaspora finances can be mobilised for development and strengthening a country’s debt position. Diaspora bonds can be structured to directly tap diaspora savings held in foreign destinations. Many countries provide for nonresident deposits to attract diaspora savings. However, unlike diaspora bonds, such savings tend to be short-term and volatile. Future inflows of remittances can be used as collateral to lower the costs of international borrowings by developing countries. Due to their large size relative to other sources of foreign exchange, counter-cyclical nature and indirect contribution to public finances, remittances can also help improve a country’s sovereign ratings and its ability to repay debt.
Remittances to East Asia and the Pacific increased by an estimated 3% to reach $133 billion in 2023. Excluding China, remittances to the region grew an estimated 7% to $83 billion in 2023, supported by the sustained growth in remittance flows to the Philippines, which has migrants in a well-diversified set of host destinations across the world. The average cost of sending $200 to the region was 5.9% in the second quarter of 2023. In 2024, remittance growth to the region is estimated to be 2.4%.
Remittance flows to Europe and Central Asia are estimated to have declined by 1.4% to $78 billion in 2023. The subdued growth in 2023 is due mainly to an unusually high base level posted in 2022, driven by huge amounts of money transfers from Russia, and a lingering weakness in flows to Russia and Ukraine. Depreciation of the Russian ruble against the U.S. dollar has also decreased the value of money transfers from Russia. The average cost of sending $200 to the region was 6.9% in the second quarter of 2023 (excluding Russia). In 2024, remittances are projected to post a decline of 1.2%.
Remittance flows to Latin America and the Caribbean are expected to increase by 8% to reach $156 billion in 2023. The strong labour market in the United States positively impacted remittance flows. Remittances to Mexico, the region’s biggest recipient, are projected to increase by 9.7%. The growth of remittances is expected to be 45% in Nicaragua, 9% in Guatemala, and 7.5% in Colombia. The average cost of sending $200 to the region was 6.1% in the second quarter of 2023. Growth in remittances to the region is expected to slow to 4.4% in 2024.
Remittances to the Middle East and North Africa are expected to decline again in 2023, falling by about 5.3% to $61 billion in 2023, driven mainly by a sharp drop in flows to Egypt. For Egypt, a significant gap between the official exchange rate and the parallel market likely caused a large part of remittances to be unrecorded. Meanwhile, remittance flows to the Maghreb countries experienced a gain, offsetting some of the decline. Sending $200 to the region cost 5.9% on average in the second quarter of 2023. In 2024, remittance flows are projected to recover to a 2.1% gain based on an expected turnaround in flows to Egypt.
Remittance flows to South Asia are estimated to have grown 7.2% in 2023 to reach $189 billion, tapering off from the over 12% increase in 2022. The increase is attributable entirely to remittance flows to India, which are expected to beat previous forecasts by $14 billion and reach $125 billion in 2023. The key drivers of remittance growth in 2023 are a historically tight labour market in the United States, high employment growth in Europe reflecting extensive leveraging of worker retention programs, and a dampening of inflation in high-income countries. Sending $200 to the region cost 4.3% on average in the second quarter of 2023. In 2024, growth in remittance flows is expected to fall to 5% due to projected weaker economic growth in the United States, the Euro Area, and GCC countries, major hosts of migrant workers from the region.
Remittance flows to Sub-Saharan Africa are expected to have increased by about 1.9% in 2023 to $54 billion, driven by strong remittance growth in Mozambique (48.5%), Rwanda (16.8%), and Ethiopia (16%). Remittances to Nigeria, accounting for 38% of remittance flows to the region, grew by about 2%, while two other major recipients, Ghana and Kenya, posted estimated gains of 5.6% and 3.8%, respectively. Fixed exchange rates and capital controls are diverting remittances to the region from official to unofficial channels. In 2024, remittance flows to the region are projected to increase by 2.5%. Sending $200 to the region cost 7.9% on average in the second quarter of 2023.
Taggd recently launched its annual report India Decoding Jobs 2024. This year’s report foresees a surge of demand across industry segments at an overall increase of 19% in hiring compared to the previous year. The report also projects an increase in the hiring of women (36% in 2024 compared to 33% in 2023) along with hiring for hybrid roles. About 2 out of 3 hires in 2024 will be for hybrid roles.
Speaking about the India Decoding Jobs 2024, Devashish Sharma, founding member and CEO at Taggd said, “In the face of global challenges, India happens to be a beacon of hope for the globe. Despite past uncertainties, the nation’s resilience shines through with over 6% annual GDP growth, making it the fastest-growing major economy. Positive trends in hiring, especially in sectors like Automotive, Manufacturing, and BFSI, indicate a dynamic recovery. The focus on diversity, upskilling, and the emergence of new roles powered by AI and generative technology further underscores India’s ability to reimagine and recover. As we navigate the evolving job landscape, the report provides valuable insights for decision-makers and job seekers alike, fostering a future where talent thrives and industries flourish.”
* The manufacturing and BFSI sectors lead the charge with a robust 25% hiring intent, indicating a strong focus on industrial expansion and talent acquisition in the financial domain.
* In tandem, the automotive industry anticipates a 20% surge, reflecting expectations of heightened demand.
* Noteworthy is the optimistic hiring intent in the Internet business and Global In-house Centers (GIC) sectors, both standing at a significant 20%, underlining the continued importance of technology and global operations.
* The pharmaceutical industry also demonstrates solid intent at 16%, emphasising sustained growth in the healthcare sector.
* Conversely, the information technology (IT) sector takes a more measured approach with a 3% hiring intent, indicative of nuanced strategies amid evolving industry dynamics.
Devashish added, “The preference for Hybrid roles will continue both by candidates as well as employers. Additionally, the survey underscores the pivotal role of the digital economy, with sectors like healthcare, fintech, and IT driving remarkable growth. These positive trends affirm our collective resilience and readiness to navigate the evolving landscape, fostering a workplace that thrives on innovation, diversity, and adaptability.”
Noteworthy is the projection of Maharashtra, Karnataka, Delhi, Telangana and Tamil Nadu as the top 5 states with the most talent pool availability. Emerging industries such as battery energy storage, green hydrogen, and biotechnology are poised for investment-led growth, creating opportunities for job seekers and foreign companies alike.
The Decoding Jobs Hiring Intent Survey 2024 paints a dynamic picture of India’s job market, urging stakeholders to adapt to evolving trends for mutual growth and success in the global economic landscape.
India Decoding Jobs 2024 is Taggd’s Annual Report which maps the job and talent landscape of India. The report includes qualitative and quantitative insights from 200+ leaders from major industry segments of the country and serves as a comprehensive guide for industry, and academia, alike.
The World Economic Forum announced recently that 21 forward-thinking manufacturers have joined the Global Lighthouse Network, a community of 153 world-leading manufacturing facilities and value chains using Fourth Industrial Revolution technologies to increase operational performance and environmental sustainability. This list includes India’s ACG Capsules (Pithampur), Schneider Electric (Hyderabad), ReNew (Ratlam, Madya Pradesh) and Unilever (Sonepat).
With rapid technological advances, escalating geopolitical tensions and accelerating climate change uncovering supply-chain vulnerabilities globally, these companies are employing advanced technologies and innovative approaches to boost productivity and sustainability in their operations.
Artificial Intelligence (AI) and machine learning are revolutionizing production globally and each Lighthouse member has found significant impact in at least one, and sometimes dozens, of advanced AI practical use cases. The result: 85% of the Lighthouses saw a less than 10% revenue loss during the height of the COVID-19 pandemic, while only 14% of other manufacturers can say the same.
The network also published today a white paper – Global Lighthouse Network: Adopting AI with Speed and Scale – showcasing how Lighthouses have built the capabilities needed to scale the impact of AI on people, the planet and business performance, and how other manufacturers could join them on the path to ensuring social impact and improved business performance.
“The Global Lighthouse Network exemplifies the power of digital transformation” said Kiva Allgood, Head of the World Economic Forum’s Centre for Advanced Manufacturing and Supply Chains. “Lighthouses are pioneering a path to unprecedented global impact, strategically weaving innovation throughout their expansive network – sculpting both a sustainable future and an era of transformative and lasting change.
Four lighthouses with outstanding environmental footprint reductions are gaining the additional designation of Sustainability Lighthouses. These global leaders are gaining momentum in achieving their sustainability pledges and greater operational competitiveness by realizing the potential of Fourth Industrial Revolution technologies in operations.
“Lighthouses see a bright future. They see a world where scaling AI, Generative AI and other Fourth Industrial Revolution technologies can unlock not only business value, but also sustainability, employee experience, and resilience objectives,” said Enno de Boer, Global Head of Operations Technology at McKinsey & Company.
The 21 Manufacturing Lighthouses and 4 Sustainability Lighthouses represent eight countries: China, Germany, India, Saudi Arabia, South Korea, Thailand, Turkey and the United States. The main trends among these Lighthouses include an unprecedented level of digital maturity, the rapid proliferation of machine intelligence, and transformation programmes that execute at-scale deployments from the outset; 82% of the Lighthouses cite “scale” as the most important design consideration for digital use cases and transformation programmes.
“The network is a platform to develop and scale up innovations and plays an important role in infusing digital technologies into our global operations”, says Dirk Holbach, Chief Supply Chain Officer at Henkel Consumer Brands. “Additionally, it creates opportunities for cross-company learning and collaboration across multiple industry sectors in order to set new benchmarks for the global manufacturing community.”
Sustainability Lighthouses
Schneider Electric (Hyderabad, India): Schneider Electric’s Hyderabad site aims to be zero carbon on Scope 1 and 2 by 2030, based on a strong Fourth Industrial Revolution core. This includes an E2E closed-loop system with CO2 tracking for strategic suppliers. The system is powered by real-time data generation and cloud analytics for all facility assets that interlink with shop-floor operations using an IIoT-enabled equaliser and AI-based predictive monitoring. This has led to a 59% reduction in energy consumption, 61% decrease in CO2 emissions, 57% cut in water consumption and a 64% reduction in normalized waste generation.
Johnson & Johnson (Xi’an, People’s Republic of China): To address growing energy demands while reducing its environmental impact, Johnson & Johnson Xi’an constructed a state-of-the-art manufacturing site. To meet and surpass its LEED Gold® certification, it implemented a series of Fourth Industrial Revolution technologies, including AI algorithms for process control, IIoT-based intelligent cleaning and digital twins. This has resulted in a 47% reduction in material waste, a 26% decrease in GHG emissions and a 23% reduction in energy consumption.
Kenvue (Bangkok, Thailand): Kenvue Thailand deployed Fourth Industrial Revolution technologies for more sustainable resource management across site operations. This includes an end-to-end water-to-ecosystem performance management system, a digital twin to optimise chiller system energy consumption, and a dynamic scheduling and container loading optimization solution that leverages data analytics and robotic process automation. From 2018 to 2023, the site reduced water utility intake by 35%, energy-related consumption (scope 1&2) by 34%, correlating GHG emissions by 29%, normalised for production volumes, and container utilization improved by 35% leading to more efficient transportation.
Siemens (Chengdu, People’s Republic of China): To become a zero-carbon pioneer in the context of 92% growth in production output in the past three years, Siemens’ Chengdu factory deployed a holistic digital energy management system, implemented predictive maintenance throughout the manufacturing process, introduced AI-based automation to identify and handle up to 16 types of production waste and applied eco-design features to improve circularity and dematerialisation. This has reduced unit product energy consumption by 24% and production waste by 48%.
Factory Lighthouses
ACG Capsules (Pithampur, India): To stay ahead of the curve in an intensely competitive market, pharmaceutical supplier ACG Capsules prioritised manufacturing superior-quality products, improving responsiveness, increasing production yields and enhancing workforce productivity. To achieve this, ACG Capsules implemented 25+ Fourth Industrial Revolution use cases powered by the industrial internet of things (IIoT), machine learning (ML), deep learning (DL), digital twins, extended reality and generative AI. Effective adoption of these use cases has resulted in a reduction in critical defects of 98%, a shortening of production lead times of 39%, a drop in total losses of 51% and a 44% rise in workforce productivity.
ReNew (Ratlam, Madya Pradesh, India): To maximise productivity, streamline costs and redeploy the existing workforce to help in-source operations and maintenance (O&M) capabilities, renewable energy company ReNew built on and scaled the digital and analytics backbone from its first Lighthouse site, including new proprietary AI models and the rapid scaling of Fourth Industrial Revolution use cases across 70 wind farms, 10 original equipment manufacturers (OEMs) and 22 unique wind turbine models. Ratlam, the company’s benchmark site for this scale transformation, has sustained improvements of 1.7% higher energy yield, 17% reductions in operating expenses and 40% less waste. This led to a 20% increase in profitability.
Agilent (Waldbronn, Germany): Amid demand fluctuations, strong growth of more than 50%, supply-chain disruptions and evolving product needs, Agilent Waldbronn introduced more than 25 Fourth Industrial Revolution-related roles and 20 associated use cases to address the challenges. Its high-volume and high-mix life-science manufacturing platform benefited from solutions from its Fourth Industrial Revolution toolkit, including AI applications and IIoT for rapid simulation and prediction. The facility has achieved a 35% increase in quality, a 44% boost in productivity and a 48% rise in output, ultimately enabling market share growth.
AMOREPACIFIC (Osan, South Korea): To stand out in the cosmetics industry, global beauty company AMOREPACIFIC used Fourth Industrial Revolution technologies such as AI and 3D printing to optimise manufacturing process design, accelerate new product introductions and improve flexibility. This reduced new product lead time by 50% and defects by 54%. It also enabled a new business model for manufactured-in-store customized cosmetics, with over 800,000 unique products offered.
Aramco (Yanbu, Saudi Arabia): To maintain a competitive edge as one of the leading suppliers of fuels while minimising its carbon footprint, this 1970s Aramco refinery underwent a five-year strategic Fourth Industrial Revolution transformation, implementing and integrating use cases at scale including an AI-based clean fuels optimiser, an AI-powered operation decision system and a digital twin dynamic model. As a result, on-spec fuel production has reached 99%, greenhouse gas (GHG) emissions have been reduced by 23% and operational availability has improved by 17%.
CATL (Liyang, People’s Republic of China): To address soaring demand and increasing labour costs, and to meet its carbon neutrality commitment, CATL Liyang applied big data to simulate quality-testing, additive manufacturing to reduce changeover times, computer vision to achieve micron-level quality inspection, and deep learning to optimize process controls and energy management. This has resulted in a 320% output increase, a 33% reduction in manufacturing costs, a 47.4% reduction in normalised emissions and a 99% reduction in quality defects. Defect measurement has been upgraded from “per million” to “per billion”.
CITIC Pacific Special Steel (Jiangyin, People’s Republic of China): To meet the fast-growing global demand for customised steel products while navigating volatile raw material and energy-supply issues, CITIC Pacific Special Steel’s Jiangyin Xingcheng plant deployed 40+ Fourth Industrial Revolution use cases such as advanced analytics-powered process simulation and optimisation, as well as AI-enabled energy management. As a result, the plant has been able to increase customized orders by 35.3%, reduce its non-qualified product rate by 47.3% and cut its energy consumption by 10.5% per tonne of steel.
China Resources Building Materials Technology (Tianyang, People’s Republic of China): To address the requirements of green and low-carbon development, higher quality expectations and cost pressures, Tianyang site, a cement factory under China Resources Building Materials Technology Holdings, has deployed 30+ Fourth Industrial Revolution use cases with advanced analytics, autonomous driving and IIoT to improve energy, labour and equipment efficiency and quality performance. As a result, the site has reduced carbon emissions by 24%, increased labour productivity by 105%, reduced unplanned downtime by 56% and improved quality consistency by 25%.
GAC AION (Guangzhou, People’s Republic of China): To satisfy customers’ spiking demand for reliable and customised electric vehicles, GAC AION deployed 40+ Fourth Industrial Revolution use cases to provide customers with more than 100,000 configuration options and ensure timely and qualified deliveries. The fully automated production line supports mixed production of made-to-order and made-to-stock models, increasing production efficiency by 50%, reducing delivery times by 33%, raising first-pass yields by 8% and reducing manufacturing costs by 58%.
Haier (Hefei, People’s Republic of China): The rise of a new middle class and increased consumer consumption in China have driven upgrades from a split air conditioner (AC) system to a central AC system, which has higher requirements in terms of quality and energy efficiency. Haier’s Hefei air conditioner factory applied advanced algorithms, digital twins, knowledge graphs and other cutting-edge technologies in the research and development (R&D), production and testing of household central AC systems, resulting in a 33% increase in energy efficiency, a 58% drop in the defect rate, a 49% increase in labour productivity and a 22% drop in unit manufacturing costs.
Hengtong Alpha Optic-Electric (Suzhou, People’s Republic of China): Facing higher cost pressures as well as quality and green production expectations from the international market, Hengtong Alpha accelerated the large-scale application of advanced analytics, machine vision and AI technology across 27 advanced use cases covering the whole production value chain. As a result, unit manufacturing costs have decreased by 21%, the defect rate has reduced by 52% and unit power consumption has fallen by 33%.
Ingrasys, Foxconn Industrial Internet (Taoyuan, Taiwan, People’s Republic of China): The rapid development of AI foundation models has brought an explosion in demand for computing power and higher efficiency, quality and iteration speed requirements for AI servers. By deploying AI use cases across order forecasting, warehouse and production scheduling, product design, quality and assembly-testing domains, Foxconn Industrial Internet’s Taiwan factory has achieved a 73% increase in production efficiency, a 97% reduction in product defects, a 21% reduction in lead time and a 39% decrease in unit manufacturing costs.
K-water (Hwaseong, South Korea): The climate crisis has caused significant water supply concerns, as heatwaves and heavy rains create more volatile and turbid supplies. To address this, K-water launched a next-generation AI water treatment plant to reduce production costs, improve responsiveness and reduce human error. It is being scaled across 40+ other sites and has helped K-water to reduce its chemical usage by 19%, improve labour efficiency by 42% and reduce power consumption by 10%.
LONGi Solar (Jiaxing, People’s Republic of China): Driven by the desire to reduce costs, improve quality and shorten the lead time on solar modules, the Jiaxing site implemented more than 30 Fourth Industrial Revolution use cases, using AI and advanced analytics to boost manufacturing operations. These efforts have had significant impacts, with the site achieving a 28% reduction in unit manufacturing costs, a 43% cut in yield loss and an 84% decrease in production lead time within one year, while also lowering energy consumption by 20%.
Mondelēz (Beijing, People’s Republic of China): Embracing sustainability ambition from both Mondelēz Global and Beijing City while meeting Mondelēz’s growth ambitions and addressing operating cost pressures due to year-on-year (YoY) 6% labour cost inflation, Mondelēz Beijing implemented 38 Fourth Industrial Revolution use cases, such as an AI-powered dough-making lights-off workshop and gas consumption optimisation by machine learning. As a result, Mondelēz Beijing has achieved a 28% net revenue growth and 53% increase in labour productivity while reducing GHG emissions by 24% and food waste by 29%.
VitrA Karo (Bozüyük, Türkiye): Increased energy prices and inflation have affected energy costs and the labour-intensive ceramic tile production process. To sustain competitiveness while responding to higher demands and maintaining a complex portfolio of 4,200+ SKUs, VitrA Karo’s Bozüyük site deployed its digital transformation roadmap, focusing on intelligent process and production controls. This has resulted in a 19% increase in OEE, a 56% decrease in scrap, a 14% decrease in energy consumption and a 43% increase in the use of recycled content.
End-to-End (E2E) Value Chain Lighthouses
Unilever (Sonepat, India): To improve agility and cater to diverse product segments, reduce costs in an inflationary environment and improve sustainability, Unilever Sonepat implemented 30+ Fourth Industrial Revolution use cases in its E2E supply chain. Top use cases included boiler and spray dryer process twins, as well as customer data-informed no-touch production planning and inventory optimisation. This improved service by 18%, forecast accuracy by 53%, conversion cost by 40% and Scope 1 carbon footprint by 88%. The use of biofuels enabled by a boiler process twin also supports livelihoods for local farmers.
DHL Supply Chain (Memphis, Tennessee, United States): Facing a growing e-commerce market and driven by retail promotions and a consumer consumption switch from offline to online orders, in addition to heavy seasonality impacts, DHL Supply Chain in Memphis, Tennessee established a strategic Fourth Industrial Revolution site, equipped with a control tower for centralised planning and execution oversight to manage and control E2E operations. This site has seamlessly integrated robots, analytics and a flexible staffing solution, resulting in a 50% overtime reduction, a 57% shipment cycle time reduction and a 290% increase in capacity, leading to a 28% compound annual growth rate (CAGR) since 2019. Consequently, the site has emerged as a primary training hub for the global adoption of new technologies.
Haier (Qingdao, People’s Republic of China): To stay ahead of the industry on cost and address common problems of unprofessional and delayed services in the home-appliance industry, Haier deployed 136 Fourth Industrial Revolution use cases for procurement cost savings and improvements in productivity and quality of services, using technologies including 5.5G, advanced algorithms and ready-to-use digital twins. This initiative has resulted in product cost being optimised by 32%, labour productivity increasing by 36% and the service complaint rate being cut by 85%.
Johnson & Johnson (Xi’an, People’s Republic of China): To improve agility and responsiveness, raise quality standards and enhance competitiveness, Johnson & Johnson Xi’an replaced its manual facility with a Fourth Industrial Revolution-enabled new factory in 2019. This facility includes digital twins for technology transfer and material handling, intelligent automation of continued process verification (CPV) and batch execution processes. This has shortened the product transfer time by 64% during site relocation and has enabled a 60% decrease in non-conformance, while improving productivity by 40%, operating costs by 24% and GHG emissions by 26%.
Kenvue (Shanghai, People’s Republic of China): To keep up with the growth in e-commerce, faster speed to market and the fluctuating demands that come from increased cost competitiveness, Kenvue Shanghai deployed more than 25 Fourth Industrial Revolution use cases, including big data analytics on social media, digital twins, additive manufacturing and ML across its E2E value chain. This resulted in a 50% reduction in new product introduction lead times, 1.3-times improvement in forecast accuracy and 99.8% on-time-in-full deliveries within 48 hours. This enabled the e-commerce business to double from 30% to 60% of overall business.
India’s Net Zero Development model should follow the Farm to the Green Frontier route and not the traditional Farm to Factory, which is not sustainable, said Shri Jayant Sinha, Chairperson of standing committee on Finance, Parliament of India and BJP Lok Sabha Member of Parliament from Hazaribagh, Jharkhand.
Shri Sinha was speaking at the third edition of Bombay Chamber of Commerce & Industry’s annual Sustainability Conclave themed ‘Sustainability for Growth and Value Creation’.
He said that India must bend the curve now, create more green jobs and combine digitisation with decarbonisation to reach our Net Zero targets. “Continuous innovation can help us get to the Green Frontier and beyond. The Green Frontier Development Model includes the following actions: Convert electricity system to renewables and build out storage and grid infrastructure; Mandate 100% EVs by 2035 for all transportation except for heavy vehicles and aviation; Integrate with global Carbon Trading System with Carbon pricing and necessary duties and Massively scale up disruptive green businesses in areas such as Green Hydrogen, biofuels, distributed energy,” he added.
The event, which was held at the Four Seasons Hotel Mumbai, was attended by the who’s who of industry. In his welcome address, Mr Ritesh Tiwari, President Bombay Chamber and CFO for HUL and Unilever South Asia, and independent director, ONDC Board, said, “These days, while the importance of Sustainability is undeniable, a question I still often get is on how we can all operate at the sweet spot of business and sustainability. This reflects the journey we each still need to take because a sweet spot seems to suggest that business and sustainability are two different circles in a Venn diagram with a limited sphere of overlap. They are not. Business needs to operate 100% in the sphere of sustainability – it is a subset of it. It is the same spot. It is existential.”
The Conclave also hosted a Fireside Chat between Mr Abhijit Ghorpade, Director, State Climate Action Cell, Department of Environment and Climate Change, Government of Maharashtra and Anirban Ghosh, Chairperson, Sustainability Committee, Bombay Chamber & Head – Centre for Sustainability, Mahindra University. “The State’s Climate Action plan has now given equal importance to adaptation and mitigation. For the first time, climate finance has also been included in the plan with 11.95% state funds being earmarked for climate activities.” Commenting on the choice between development and environment, Ghorpade said that there is always an opportunity cost. He cited the example of Majhi Vasundhara Abhiyaan 3.0, an holistic movement initiated by the Environment and Climate Change Department, Government of Maharashtra. “Nearly 22,000 village panchayats in the state participated in this. About 2 crore trees were planted and 16,000+ green spaces were created, and 175-megawatt solar power plants were installed.”
Some of the esteemed speakers in the three panel discussions at the Sustainability Conclave included Anjali Bansal, founder, Avaana Capital; R. Mukundan, MD & CEO of Tata Chemicals; Rajiv Anand, Deputy Managing Director, Axis Bank; Satish Mandhana, Senior Managing Director & Chief Investment Officer, Eversource Capital; Abhishek Poddar, India Country Head, Macquarie Group; Kavita Saha, Managing Director, Head of Infrastructure & Sustainable Energies, India, CPP Investments, Investissements RPC; Manish Chourasia, Managing DIrector, Tata Cleantech Capital; Dhruba Purkayastha, India Director & USICEF Director (US India Clean Energy Finance); Padmanabh Sinha, Executive Director & CIO, Private Equity, National Investment and Infrastructure Fund (NIIF). The moderators were Nisha Poddar, Market Anchor & Editor – M&A, CNBC-TV18; Madhura Mitra, Executive Director, Climate Change and Sustainability, PwC India and Raman Kalra, Vice President & Senior Partner, Communications Sector Leader & Sustainability Consulting Leader, IBM.
This conclave was supported by HUL, HSBC , PwC & DTDC
At the Conclave, Bombay Chamber also announced the third edition of its Workplace Safety Awards. Dow Chemical International Pvt. Ltd, Mumbai Office was the winner in the 100-500 Employees Category while Lanxess India Pvt Ltd, Thane Office was the Runner up. In the 500+ Employees Category, Godrej Industries Limited, Mumbai was the winner with Sanofi, Sanofi House, Mumbai,as the First Runner up and Tata AIG General Insurance Company Limited, Peninsula Business Park, Mumbai, the Second Runner up. There was also a Special Category (Construction) Award given to the Mumbai Coastal Road Project Package 4, L&T Heavy Civil Infrastructure, Mumbai.
On the same evening, Bombay Chamber celebrated its 188th Foundation Day where Mr Rohit Jawa President, Unilever, South Asia and CEO and Managing Director, Hindustan Unilever Limited (HUL) was the Chief Guest. In his Keynote Address, Mr Jawa highlighted the uniqueness of India’s growth journey and said, “India’s growth will be supported by both the manufacturing and services industries. While most growing economies depend on export markets, India is witnessing a rise in consumption. This presents a huge headroom for growth and opportunities.” He added that favourable demographics and the ‘Make in Inda’ drive will also provide impetus for growth. “ The five key areas the nation needs to work on include creating employment, boosting employability, women’s participation in the workforce, strengthening the rural economy and being cognizant of the climate crisis, he said.
Later, Dr. Sachchidanand Shukla, Chairman, Economic Policy, Research & Development, Bombay Chamber & Group Chief Economist, Larsen & Toubro presented the key highlights of Bombay Chamber’s 6th Economic Outlook Survey.
The Foundation Day was attended by Board members, past presidents and leading industry stalwarts.
In this age of unprecedented digital transformation, the role of Chief Financial Officers (CFOs) has evolved beyond traditional financial stewardship. Speaking at the recently held CFO Technology Conclave 2023, in Mumbai, Ritesh Tiwari, President, Bombay Chamber of Commerce & Industry and CFO, Hindustan Unilever Limited and Unilever South Asia said that to seize the digital megatrend opportunity and emerge as digital champions, a comprehensive digital business strategy is essential. This strategy should encompass both breadths, leveraging value across the organisation, and depth, focusing on high-impact opportunities to drive transformational impact.
The CFO Technology Conclave 2023 was jointly conceptualised and organised by Bombay Chamber of Commerce & Industry and Express Computer from the Indian Express Group. This collaborative effort aimed to delve into the latest digital trends shaping the CFOs function.
Other eminent speakers at the Conclave included P Ramakrishnan, Vice President – Corporate Accounts and Head Investor Relations, Larsen & Toubro Limited. He said, “One important thing is how a tech-enabled organisation, under the supervision and guidance of the CFO can enable the organisation to grow despite the uncertain and challenging times that we have today.” He also mentioned that in the present scenario, CFOs are expected to embody multifaceted roles as strategic visionaries, collaborative integrators, transformative catalysts, and grounded communicators. Their responsibilities extend beyond traditional financial management to encompass the seamless integration of cutting-edge technologies such as GenAI, Super Apps, Industry 5.0, blockchain, quantum computing, and sustainable tech into organisational operations. Recognising the paramount importance of cybersecurity.
The event also had a workshop by Ekhlaque Bari, an AI Coach and Consultant on ‘Generative AI Masterclass: Introduction and its impact on Businesses’, where he mentioned that among high-performing AI initiatives, cost reduction isn’t the predominant goal. He shared that approximately 75% of the potential value from generative AI lies in software engineering, customer operations, marketing and sales, and R&D domains. He also mentioned that this technology comes with inherent risks such as data security, hidden bias, copyright infringement, and opaque reasoning.
The workshop was followed by a panel discussion moderated by Srikanth RP, Editor, Express Computer. The panel comprised Pinky Mehta, Vice President, Bombay Chamber of Commerce & Industry and CFO, Aditya Birla Capital Ltd; Karun Gupta, Finance Director, Salesforce India; Sumesh Balakrishnan, Founding Team, CFO, Legal Investor Relations, Cognida.ai; and Sandhya J, CFO, Narayana Health, where they explored how emerging technologies can future-proof finance.
Sharing her views Mehta stated, “Within our company, we’ve automated the GST system, streamlined spent analytics, created the CFO Dashboard, and put automated invoice processing into place.” Gupta added, “We recognise the critical role of technology integration and actively use AI and data within our Employee Productivity Platform, laying out our plan for the next three to four years.” Balakrishnan pointed out that in the near future, two technologies that will revolutionise CFO functions are blockchain and quantum computing. Sandhya J said, “Every piece of technology that we integrate into our business requires a thorough analysis to maximise its value because it represents a significant financial and labour investment.”
In the second part of this insightful Generative AI Masterclass with Bari, he shared that approximately 75% of the potential value from generative AI lies in four key domains: software engineering, customer operations, marketing and sales, and R&D. The global economy stands to gain trillions of dollars in productivity from the transformative impact of generative AI. However, this technology comes with inherent risks such as data security, hallucinations, hidden bias, copyright infringement, and opaque reasoning.
The enlightening masterclass was followed by a session by Kabir Ahmed Shakir, CFO, Tata Communications Limited on ‘Future of Finance in Digital Era’, where he mentioned that our future is destined for a hyperconnected ecosystem, shaped by major technological disruptions in the next three–five years, including quantum computing, AI, cloud computing, intelligent edge, and mixed reality. He advised that CFOs must remain vigilant, addressing challenges related to trust maintenance, data privacy, cybersecurity, dynamic resource allocation, cultivating innovation, embracing a culture of quick failure, and iterative progress.
The Conclave then saw the unveiling of the much-awaited CFO Technology Coffee Table Book where more than 22 CFOs showcased how they are leveraging technology to transform their organisations.
The unveiling of the CFO Technology Coffee Table Book was followed by a session on ‘Reshaping Budgeting and Forecasting with AI and Big Data’ delivered by Bharat Agrawal, Director Finance – South Asia, Diversey, where he highlighted the critical aspects of data confidentiality, availability, and robust server practices to ensure a secure budgeting environment. He suggested implementing rigorous audit trails to protect sensitive financial information, reinforcing the overall security of budgeting processes. Foster a leadership tone that advocates for the seamless integration of AI and big data in budgeting, emphasising the strategic importance of leveraging advanced technologies for financial planning and analysis.
“I hope that all of you enjoyed the sessions. We had very eminent speakers speaking about the latest ChatGPT, digitisation and the CFOs’ role,” said Sandeep Khosla, Director General, Bombay Chamber & Industry, while delivering the vote of thanks, expressing gratitude to Express Computer and the sponsors for supporting the event.
Maharashtra Government notifies public holidays for 2024 under the Negotiable Instruments Act
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The penetration of mutual funds in India and its growth has been remarkable. We have come a long way, but we still have huge potential, said Shri Amarjeet Singh, whole time member SEBI at the recent Mutual Fund Conclave organised by Bombay Chamber of Commerce & Industry, India’s oldest chamber of commerce and industry. At the same time he cautioned, that governance of AMCs is very important.
“Once Indian investors come in, they repose certain amount of interest or faith in the market and if that faith is disturbed, then they withdraw from that particular segment of the market and it’s very difficult to get them back. It is responsibility of all the stakeholders, including regulators, industry and investors to make sure that this trust and faith which is required is not disturbed and that is why we need good governance,” he said.
He further added that digitisation and the spread of information on social media has ensured that it does not take much time for negative news to spiral and reputations to be adversely affected. “Past experience has shown that once trust in the markets is lost, it takes a long time to rebuilt it. Since mutual funds have a very small ticket size, could be as low as INR 100 to 500, it is even more critical to maintain the trust and faith of investors. So, ensuring strong corporate governance practices and transparency within the mutual fund industry is crucial for future growth,” he stated.
Nilesh Shah, past President, Bombay Chamber and Group President and MD, Kotak Mahindra AMC set the theme for the event. The Conclave saw two insightful panel discussions. The first was on the topic Mutual Fund Maturity in India: Future Trends and Investor Preferences. The panelists were Nilesh Shah; Navneet Munot, MD & CEO, HDFC AMC; Nimesh Shah, MD & CEO, ICICI Prudential AMC Ltd and D. P. Singh, DMD & Jt CEO, SBI Mutual Fund. The session was moderated by Latha Venkatesh, Executive Editor, CNBC TV18.
The second panel discussion was on The Shifting Regulatory and Business Terrain. The panelists were Varun Sridhar, CEO, Paytm Money Ltd; Dhiraj Relli, MD & CEO, HDFC Securities Limited; Varun Gupta, CEO, Groww Mutual Fund; Kalpen Parekh, MD & CEO, DSP Mutual Fund. The moderator was Sourav Majumdar, Editor, Business Today.
The Vote of Thanks was presented by Rajiv Anand, board member, Bombay Chamber and Deputy Managing Director, Axis Bank.
More than 100 senior executives from the Alliance of CEO Climate Leaders, the world’s largest CEO-led community committed to net zero emissions, signed an open letter recently ahead of the COP28 climate conference, calling on leaders from the public and private sectors to accelerate net-zero actions to reduce carbon emissions for the benefit of society, public health and the global economy.
The latest IPCC report has confirmed that the world is on course to breach the critical barrier of 1.5°C warming within the next two decades, setting a path to cascading climate tipping points and irreversible damage to the Earth’s planetary systems. Limiting the average global temperature increase to 1.5°C would require 50% emissions reductions by 2030 – amounting to annual emission reductions greater than what was achieved during the COVID-19 pandemic.
According to the latest report from S&P Global Market Intelligence, India is poised to become the world’s third-largest economy, surpassing Japan by 2030. The report anticipates that India’s GDP will double, reaching $7.3 trillion, up from $3.5 trillion in 2022. This rapid economic growth will lead to India overtaking Japan as the second-largest economy in the Asia-Pacific region. Currently, Japan holds the third position globally, following the United States and China.
The substantial increase in foreign direct investment into India over the past decade reflects the promising long-term growth prospects of the Indian economy. This growth is driven by a youthful demographic profile and rapidly rising urban household incomes. By 2022, India’s GDP had already exceeded that of the United Kingdom and France. The report also predicts that by 2030, India’s GDP will surpass Germany’s.
Notably, Japan is expected to slip to the fourth position in the world economy rankings based on US dollar valuation, as Germany takes over the third spot. The International Monetary Fund’s projections support this change.
India stands out as an outperformer in the emerging market landscape, with the private sector experiencing the second-fastest sales growth in over 13 years, contributing to overall economic expansion. While Russia reported robust growth, mainland China’s expansion slowed, and Brazil faced economic contraction during the survey period, as highlighted by S&P.
The report also underscores the global economic slowdown, which reached its lowest point in eight months by the end of the third quarter. Furthermore, the first contraction in global new orders and a significant decrease in work backlogs suggest potential weaknesses in the coming months.
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