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HNG Insolvency Case: Exposing Major Conflicts And Quid Pro Quo Deals

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The HNG insolvency case uncovers deep conflicts of interest and potential quid pro quo deals, revealing Edelweiss Group’s controversial dual role as a funder and creditor. Legal experts highlight the troubling implications for India’s debt resolution process

Conflict of interest galore in the long pending debt resolution case involving Hindustan National Glass (HNG), India’s oldest glass-making company. It has come to light that Edelweiss Group, Mumbai’s leading financial services company, was a funding partner of AGI Greenpac, one of the bidders in the race to acquire HNG. The same Edelweiss Group was also on the other side of the deal and cast its vote in favour of AGI’s bid to acquire HNG, making it a case of grave conflict of interest, said legal experts involved with the deal. The sensational revelations have come to light as the proceedings in the National Company Law Tribunal (NCLT) revealed a letter (in possession of BW) from Edelweiss Alternative Asset Advisors to AGI promising Rs 1100 crores in funding to acquire HNG. The plot thickens as the legal proceedings also show that Edelweiss was a key member of the Committee of Creditors (CoC), which is mandated to approve or reject the bids, and could swing the insolvency deal in favour of AGI – a quid pro quo.

One of the key clauses in the letter of funding issued by Edelweiss to AGI says that funding would be provided only if AGI’s plan was approved by the CoC. But there was no chance of rejection of AGI’s bid since on the other side Edelweiss also managed to break into the CoC club with a 24 per cent voting right, after it acquired HNG’s debt from L&T, HSBC, HDFC and Axis in a structured arrangement, the records show. Among the only two bidders for HNG in the debt recovery tribunal, AGI’s bid won 98 per cent of votes from the CoC while the other bidder secured 88 per cent vote. In this, while all the other COC members voted similarly for the two bidders, a vote from Edelweiss could have swung the deal in favour of AGI – the letter of funding reveals the plot.

As part of the funding deal, Edelweiss was to get debentures of HNG, which would be later converted into equity shares – a sweet deal.

An email sent to Edelweiss Group, COC and the RP has remained unanswered. Will add their responses as when received.

How objection was raised on Edelweiss voting in COC
Edelweiss wanted to be the part of the lead COC, which is authorised to take various decisions to close the deal. Further, minutes of the COC meeting also show that someone had objected to Edelweiss’ presence in the committee during voting but it was overlooked. These details have come out in the copy of the minutes of the meeting filed with the adjudicating authority of Kolkata NCLT.

The minutes of the meeting show that RP Girish Juneja informed the CoC members that Edelweiss ARC had submitted four different claims and hence was entitled to have four separate voting rights and had requested the RP to provide four separate voting rights instead of one combined voting right. Then, the RP requested Edelweiss to share authorisation for four separate voting rights.

“One lender raised the concern about the validity of the votes already cast by Edelweiss. To this, the RP after taking the legal opinion of the COC counsel requested Edelweiss to share a letter along with revised authorizations stating the validity of the earlier votes cast,” says the copy of the minutes of the meeting, which is in possession of BW.

Intriguingly, the RP is a person appointed by the COC, of which Edelweiss is a part, something that only deepens the conflict. COC consisted of three lead lenders including SBI with 38 per cent voting rights, Edelweiss with 24 per cent voting rights and DBS having 14 per cent voting rights. Clearly, Edelweiss had the second-largest voting rights in the COC, which gave it the power to swing the deal. Hence, when only two bidders got equal votes from the other COC members, AGI got 98 per cent votes. This suited Edelweiss Group since it was to earn a fat interest commission on a lending deal it had cut with AGI.

HNG insolvency matter is among the longest pending debt resolutions in India and has been marred by several controversies, mainly due to the highly vitiating process followed by the Resolution Professional (RP). India’s two Supreme Court judges NV Ramana and AK Sikri have given a detailed opinion on the dubious role of the RP in the HNG resolution matter.

Questions over RP’s role

“The actions of the RP have given an undue advantage to AGI (one of the applicants) over remaining resolution applicants, especially INSCO. The prejudiced and partisan conduct of the RP can be seen from the following: The RP watered down the requirements under the RFRP (request for resolution plan) through email dated 25.08.2022 by allowing the CCI approval to be availed after approval of the plans by the COC but before application to the NCLT.  The RP, contrary to his own decision communicated through email dated 25.08.2022, submitted the Resolution Plan of AGI, without there being any CCI approval on that date. It is noteworthy that AGI did not have any CCI approval on the following dates: On the date of submission of the Resolution Plan on 26.09.2022. On the date of CoC approval on 28.10.2022. On the date of application of AGI’s Resolution Plan for approval before NCLT Kolkata,” Justice Sikri has said in his opinion.

Further, Justice Sikri also said that the decision taken by the RP was categorically to favour an applicant. “Considering there were only two bidders, INSCO and AGI, and since INSCO already had the approval under green channel on the date of submission of its final Resolution Plan,  the decision taken by the RP was categorically only in favour of AGI being the only other bidder and who did not have a CCI approval. Had the decision of the RP not been taken, AGI’s Resolution Plan would not have been eligible for voting. It is also pointed out that on the dates of submission of Resolution Plan as well as voting, AGI did not even have an application before CCI pending, yet the RP has reposed utmost confidence in the Resolution Plan of AGL Perusal of the above events shows that action of the RP was to give special preference to one bidder as opposed to the remaining bidder and the same ought to be examined by the NCLT Kolkata under Regulation 36 of the CIRP .; Regulations and prevalent judicial precedents.

What did Justice Justice Ramana say?

In the view of Justice NV Ramana, the former chief justice of SC, the RP’s actions may have given an undue advantage to a party AGI. Justice Ramanna gave his opinion in June 2023.

“The actions of the RP have given an undue advantage to a bidder. In fact, considering there were only two bidders and since one already had (CCI) approval under the green channel under the date of submission of its final resolution plan, the decision taken by the RP was categorically only in favour of AGI being the only bidder who did not have a CCI approval,” Ramana said.

Interestingly, Ramana also said that AGI’s resolution plan would not have been eligible for voting in the first place since on the date of submission of the plan as well as voting, AGI did not have any application pending before the CCI. “Yet, the RP has reposed utmost confidence in the resolution plan of AGI. There is merit in the arguments that actions of RP were to give special preference to one bidder and the same ought to be examined by the NCLT under regulation 36 of CIRP and prevalent precedents,” Ramana said.

Mystery of conditional CCI approval

The CCI order dated 15 March 2023 reveals that CCI is of the prima facie opinion that the combination of HNG and AGI is likely to result in an ‘appreciable adverse effect on competition’ in the overall container glass packaging in general and in the sub-segments of alco-beverage and F&B in particular.

However, CCI proposed modifications by AGI that involved divestment of the Rishikesh plant of HNG, which in the submission of AGI would reduce the impact on the competition. Thus, the CCI granted approval to AGI only on the basis of this modification.

“Modifications were only submitted (by AGI) on March 10 and 14 and CCI order was passed on March 15. Thus it is clear that the CCI order is completely based on the submission of AGI and it has not had a chance to verify and examine the submissions. The submission of AGI, if proved to be false, would render the basis of the CCI order as wrong and liable to be set aside,” Ramana noted.

Further, since AGI’s plan was not disclosed to the RP, CoC on the submission of the resolution plan and its voting and on the date of filing of application by the RP to the NCLT for final approval, it is a clear case of non-disclosure and concealment by AGI. It would be tantamount to misrepresentation, Ramana noted. “A resolution plan discussed and approved on the basis of such non-disclosure should be set aside and sent back to the CoC as being violative of various sections,” Ramana said.

PwC india

PwC India Launches New GenAI-Powered Tools For CFOs

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This cutting-edge features are likely to transform how CFOs manage data, providing quicker processes and improved decision-making skills

PwC India, a leading professional services business, has launched a range of innovative products designed for chief financial officers (CFOs) that incorporate GenAI technology.

The GenAI-powered suite offers various advantages for CFOs:

Simplifying complicated financial procedures through effective data processing.

Responding to stakeholders more quickly ensures better communication.

Reduced process risks by accurately identifying and validating transactions.

This suite, which has already been used by 700 clients in 16 countries, addresses a wide range of financial demands, including operational finance, tax management, compliance, control effectiveness, and contract management.

Here’s a look at some significant offerings:

Integrated Accounts Payable Engine

A comprehensive solution for touchless and paperless invoice processing, including built-in tax compliance features. It incorporates AI-based invoice reading and processing capabilities, as well as a feature-rich supplier site.

Compliance Insights

This product is designed to centralise enterprise-wide compliances by keeping an updated compliance register and using GenAI to provide responses to complex compliance papers.

Anomaly Detection Platform: An award-winning technology that helps CFOs automate reconciliations and cash applications using unsupervised machine learning. It includes GenAI-powered algorithms for effective anomaly detection and translation into plain English.

Contract insights

This solution, which includes a digital contract lifecycle management platform, speeds transaction closure by integrating with CRM and ERP systems. GenAI assists with risk analysis.

Business Risk Analytics and information Platform

With over 800 algorithms, this platform offers complete ERP transaction monitoring, providing controllers and auditors with actionable information.

Navigate Tax Suite 

This suite addresses the issues provided by tax compliances and regulations, providing solutions for GST, income tax, and transfer pricing. GenAI integration helps with rate identification, code validation, tax research, and litigation preparation.

textile

Indian Textile & Apparel Market To Reach $350 Bn By 2030: Report

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The transformational change for textile industry at large would need to be based on manufacturing excellence, responsible production, embracing sustainable practices, leveraging technological capacities, and developing assurances in product and process by collaborative efforts of us all,” said Ms Roop Rashi, Textile Commissioner, Ministry of Textiles, Government of India

The market for Indian textiles and apparel manufacturers could reach USD 350 billion by 2030, owing to the long-term positive outlook for the Indian economy and a strong focus on emerging areas such as technical textiles, home furnishing, specialised fabrics and fashion apparels, according to the FICCI-Wazir Advisors report.

“The transformational change for textile industry at large would need to be based on manufacturing excellence, responsible production, embracing sustainable practices, leveraging technological capacities, and developing assurances in product and process by collaborative efforts of us all,” said Ms Roop Rashi, Textile Commissioner, Ministry of Textiles, Government of India.

The global apparel market is anticipated to be worth over USD 1.7 trillion in 2022, with a CAGR of around 8 per cent expected to reach USD 2.37 trillion by 2030. The global textile and apparel trade were worth approximately USD  910 billion in 2021 and it is predicted to expand at a CAGR of 4 per cent to reach  USD 1.2 trillion by 2030.

The Indian textile and apparel sector are expected to be worth USD  165 billion in 2022, with a domestic market of USD  125 billion and exports of USD  40 billion. Given the optimistic long-term outlook, the industry is expected to increase at a 10 per cent CAGR to USD  350 billion by 2030, the report said.

coal

Mineral Production Goes Up By 12.3% In August 2023: Report

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At the same time, the cumulative growth for the period April- August 2023-24 over the corresponding period of the previous year is 8.3 per cent

The index of mineral production of the mining and quarrying sector for the month of August 2023 (Base: 2011-12=100) at 111.9, is 12.3 per cent higher as compared to the level in the month of August 2022, As per the provisional data of the Indian Bureau of Mines (IBM).

At the same time, the cumulative growth for the period April- August 2023-24 over the corresponding period of the previous year is 8.3 per cent. The production level of important minerals in August 2023 were: Coal 684 lakh tonne, Lignite 28 lakh tonne, Natural gas (utilised) 3110 million cu. m., Petroleum (crude) 25 lakh tonne, Bauxite 1428 thousand tonne, Chromite 148 thousand tonne, Copper conc. 10 thousand tonnes, Gold 113 kg, Iron ore 181 lakh tonne, Lead conc. 30 thousand tonnes, Manganese ore 233 thousand tonnes, Zinc conc. 132 thousand tonnes, Limestone 365 lakh tonne, Phosphorite 107 thousand tonnes, and Magnesite 10 thousand tonnes,.

Important minerals showing positive growth during August 2023 over August 2022 include Gold (46.8 per cent), Phosphorite (40.7 per cent), Manganese Ore (36.9 per cent), Copper Conc. (18.9 per cent), Coal (17.8 per cent), Iron Ore (14.9 per cent), Limestone(13.8 per cent), Natural gas (U) (9.9 per cent), Magnesite (4.5 per cent), Petroleum(crude) (2.1 per cent), Chromite (1.4 per cent ). While minerals like Bauxite (-1.5 per cent), Zinc Conc.(-4.1 per cent), Lignite(-5.4 per cent ) and Lead Conc. (-15.1 per cent) show negative growth.

 

 

chat gpt

OpenAI Engages In Discussions For Employee Share Sale At $86 Bn Valuation: Report

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Earlier this year, OpenAI conducted a USD 300 million share sale, placing the company’s value at USD 30 billion

OpenAI is reportedly in discussions to sell shares owned by its existing employees, aiming for a valuation of approximately USD 86 billion. This revelation follows earlier reports from the Wall Street Journal that OpenAI, with backing from Microsoft, was eyeing a valuation as high as USD 90 billion for this shares sale. 

While OpenAI has yet to officially respond to media inquiries regarding this matter, these talks further underscore the meteoric rise in the company’s worth, largely driven by the remarkable success of ChatGPT.

ChatGPT, a conversational AI chatbot capable of generating human-like responses based on user input, has played a pivotal role in boosting the popularity and significance of artificial intelligence. This technology has not only redefined human-computer interactions but has also been instrumental in propelling OpenAI’s valuation to new heights.

Earlier this year, OpenAI conducted a USD 300 million share sale, placing the company’s value at USD 30 billion. However, the recent discussions indicate a significant shift in perspective, with the potential for OpenAI’s valuation to almost triple in a relatively short span of time. 

OpenAI is presently engaged in negotiations with potential investors for a tender offer. According to reports from Bloomberg, the allocation of shares and the specific terms of the transaction have not been finalised, which means that the situation remains fluid, and details could change as negotiations progress.

 

 

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India’s FY24 GDP Forecast: 6.3% Growth Fueled By 5.6% Industry And 7.3% Services Expansion, Survey Reveals

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The survey reveals ongoing obstacles to this trajectory of progress. Potential hindrances include geopolitical unrest, China’s economic slowdown, the sluggish impacts of monetary tightening, and poor monsoon patterns

 
 
 

The latest findings from the FICCI’s Economic Outlook Survey have projected a median annual GDP growth rate of 6.3 per cent for the fiscal year 2023-2024, encompassing a range from a minimum estimate of 6.0 per cent to a maximum estimate of 6.6 percent.

The median growth prediction for agriculture and related activities during the same time period is 2.7 per cent. This reflects a moderated rise when compared to the about 4.0 per cent growth seen in the preceding fiscal year of 2022-2023. The El Nino effect, which altered the distribution of rainfall throughout the monsoon season, is blamed by the survey for this decline.

“The key factors contributing to the GDP growth projection of 6.3 per cent for 2023-24 are anticipated growth in the industry and services sectors. This growth is supported by improved consumption and investment activity, especially in the non-industrial sector, thanks to the government’s focus on capital expenditure. Additionally, the contact-intensive services sector is expected to play a crucial role in driving growth,” stated economists participating in the survey.

The industry and services sectors are anticipated to grow by 5.6  per cent and 7.3  per cent, respectively, in the current fiscal year.

“The primary drivers of this growth are the industry and services sectors, with expected growth rates of 5.6  per cent and 7.3  per cent, respectively. The growth in these sectors is fueled by improved consumption and investment activities, particularly in infrastructure and non-industrial areas,” added experts from the survey.

Prominent economists from the banking, financial services, and industrial sectors participated in the Economic Outlook Survey, which was conducted in September 2023. These experts were asked for their opinions on the most important macroeconomic factors for 2023-24 as well as for the second and third quarters of the same fiscal year.

As a result, after a strong 7.8 per cent rise in the first quarter, the median GDP growth is forecast to fall down to 6.1 and 6.0 per cent in the second and third quarters of 2023-24.

The survey reveals ongoing obstacles to this trajectory of progress. Potential hindrances include geopolitical unrest, China’s economic slowdown, the sluggish impacts of monetary tightening, and poor monsoon patterns.

“While India continues to shine on the global economic stage, the survey findings emphasise the need for vigilance due to persistent challenges. Geopolitical tensions, the deceleration of growth in China, the delayed impact of monetary tightening, and below-average monsoons all pose significant downside risks to India’s economic growth,” as mentioned in the survey.

Survey participants also highlighted that the CPI inflation rate is expected to remain above the Reserve Bank of India’s targeted level for the remainder of the financial year. Regarding policy action by the Reserve Bank of India (RBI), economists believe that a repo rate cut is unlikely until the end of the first or second quarter of the next fiscal year, 2024-25.

The statement from the survey underlined, “The government and RBI can collaborate to control inflation through coordinated measures such as supply-side management and ensuring uninterrupted supply of essential commodities. This suggests that, given the supply-side-driven nature of inflation, monetary policy might have a limited role, and the focus should be on managing supply-side factors.”

In terms of investments, the survey noted the government’s emphasis on capital expenditure, which has positively influenced private investments and bolstered growth. Nevertheless, a complete recovery in private investments is expected to take more time and will likely be led by increased consumption activity, both domestically and externally.

 

 

retail inflation

India’s Wholesale Inflation Stays In Negative Zone For 6th Month

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Deflation in September is primarily due to a fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year

Wholesale inflation in India based on the wholesale price index (WPI) continued to stay in the negative zone for the sixth straight month through September, official data showed on Monday.

In April this year, it went into negative territory. Similarly, in the initial days of Covid, in July 2020, the WPI was reported to be negative.

The September wholesale inflation came in at (-) 0.26 per cent against (-) 0.52 per cent in August, and against (-) 1.23 the previous month of July, official data released by the Ministry of Commerce and Industry showed.

Deflation in September is primarily due to a fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year.

The WPI data comes after the statistics ministry had said on 12 October that headline retail inflation had fallen to a three-month low of 5.02 per cent in September.

The government releases index numbers of wholesale prices on a monthly basis on the 14th of every month (or the next working day). The index numbers are compiled with data received from institutional sources and selected manufacturing units across the country.

Overall wholesale inflation was 8.39 per cent in October 2022 and has fallen since then. Notably, the wholesale price index (WPI)–based inflation had been in double digits for 18 months in a row till September last year.

Meanwhile, the retail inflation in India is again back in RBI’s two to six per cent comfort level in September but is above the ideal 4 per cent scenario. September retail inflation was at 5.02 per cent.

Barring the recent pauses, the RBI has raised the repo rate by 250 basis points cumulatively since May 2022 in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline. (ANI)     

 

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Data Centre Investment To Exceed By $10 Bn In Next 3 Years: CII- Colliers

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The report projected that 60 per cent of the new additions will be housed by Mumbai and Chennai over the next three years along with tier two cities also expected to experience consistent growth as businesses and startups establish bases there

Investments in data centres is predicted to exceed by USD 10 billion over the next three years, according to the latest CII-Colliers report. This investment will be led by use of cloud computing, IoT and 5G as well as expanded internet access and government digitalisation programmes.

The report projected that 60 per cent of the new additions will be housed by Mumbai and Chennai over the next three years. Tier two cities will also experience consistent growth as businesses and startups establish bases there.

Investors are taking advantage of the data centre revolution brought on by national data localisation initiatives, attracted by the potential of steady returns and higher yields.

The report also highlighted that edge data centres offer a significant investment opportunity as the need for lower-latency computing increases. Due to India’s impending 5G adoption boom, major data centre providers are preparing to open a number of edge centres in the country.

This is likely to make edge data centres a top choice for investments, which will also help them gradually enter tier two cities. Since there is still a high demand for data centres in prime locations, developers are likely to adopt a land-banking strategy. They will be able to acquire land in key places for future projects thanks to this.

India has more than 880 million internet users, nearly twice as many as the United States and approximately 12 times as many as the United Kingdom. In contrast to the developed markets, India has a substantially lower ratio of data centre space per million internet users. After the pandemic, the market for data centres in India grew remarkably, bringing in roughly USD 7.0 billion in investments since 2020.

steel

CareEdge Ratings Upgrades Outlook On Jindal Stainless To AA/Stable

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The rating on the short-term bank facilities has been reaffirmed at CARE A1+

Rating agency CareEdge on Wednesday upgraded Jindal Stainless’s credit ratings from AA-/stable to AA/stable on the long-term bank facilities and non-convertible debentures. 

The rating on the short-term bank facilities has been reaffirmed at CARE A1+.

Abhyuday Jindal, Managing Director, Jindal Stainless, said, “We look forward to sustaining this momentum through operational excellence, besides fostering an ecosystem dedicated to stainless steel for increased awareness and adoption in the country.”

The ratings agency has revised its outlook in view of the performance of the company demonstrated by its consistently improving sales volumes and higher than envisaged Profit Before Interest, Lease rentals, Depreciation and Taxation (PBILDT) per tonne over the last two years. The agency also considered the company’s persistent improvement in its debt coverage metrics. It noted that Jindal Stainless has recorded “steady-state improvement” in its sales volumes over the last three years and that it expects the likely continuation of increase in sales volume over the next two years with the commissioning of an additional one million tonnes per annum (mtpa) capacity at Jajpur, Odisha.

Group CFO and Executive Director, Jindal Stainless, Anurag Mantri, said, “Jindal Stainless’ improved ratings is testimony to our prudent capital allocation policy and robust balance sheet management. Despite being in organic and inorganic capex cycle, our leverage ratios are amongst the best in the industry. We continue to focus on efficient working capital management and financial discipline to maximize value for all our stakeholders.”

Within the corporate sector, CareEdge Ratings rate debt instruments and bank facilities of manufacturing entities, service entities, trading entities, PSUs, etc. While evaluating, CareEdge Ratings also considered the company’s increasing focus to diversify its product portfolio by including long stainless steel products through the acquisition of Rathi Super Steel Limited, entering into a collaboration agreement with New Yaking Pte Ltd to obtain 49 per cent stake in a Nickel Pig Iron smelter facility in Indonesia, the successful merger of Jindal Stainless (Hisar) Limited into Jindal Stainless, the expansion to achieve a melt capacity of ~3 million tonnes per anum, and acquisition of remaining 74 per cent stake in Jindal United Steel Limited (JUSL), thereby making JUSL a wholly-owned subsidiary.

In a separate development, CareEdge Ratings also revised the long-term bank facilities of JUSL from CARE AA-; Stable to CARE A+; Positive. This rating upgrade was carried out on the basis of “sustained improvement in the operational performance, expanded capacity, and envisaged growth in tolling volumes”.

 

 

gartner report

Global PC Market Sees 9% Decline In Q3 2023, But Signs Of Recovery Emerge: Report

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This is eighth consecutive quarter of decline for the industry, signaling a prolonged period of contraction

The global PC market experienced a nine per cent decrease in shipments, totaling 64.3 million units in the third quarter of 2023, according to Gartner. This is eighth consecutive quarter of decline for the industry, signaling a prolonged period of contraction.

However, analysts suggest that there are glimmers of hope on the horizon, as signs of a potential recovery emerge. Mikako Kitagawa, Director Analyst at Gartner, commented on the findings. He said, “There is evidence that the PC market’s decline has finally bottomed out.”

Kitagawa attributed a portion of this quarter’s shipment boost to seasonal demand from the education sector. This surge, however, was partially offset by persistently weak demand in the enterprise PC market. Vendors have also made strides in reducing PC inventory levels, with expectations of a return to normalcy by the close of 2023, provided holiday sales remain steady.

Lenovo Maintains Its Lead

Lenovo maintained its dominance in the market, holding the top spot in shipments with a 25.1 per cent market share. Though Lenovo did experience a year-over-year decline in shipments, it was a moderated single-digit decrease. In contrast, HP stood out as the only vendor to exhibit growth, reporting increased shipments across all regions. Meanwhile, Dell faced its sixth consecutive quarter of shipment decline, impacted by sluggish demand in the enterprise PC sector, where it maintains a strong presence.

Apple, on the other hand, saw a sharp decline in shipments compared to the previous year. This dip can be attributed, in part, to a surge in shipment volume in Q3 2022, following supply disruptions caused by China’s lockdown in early 2022. In the third quarter of 2023, Apple’s shipments adhered to typical seasonal trends, primarily driven by demand from students and educators.

Looking ahead, Kitagawa said, “The good news for PC vendors is that the worst could be over by the end of 2023.” The business PC market is poised for an upgrade cycle, driven by the anticipated adoption of Windows 11. Consumer demand is also projected to rebound as PCs purchased during the pandemic reach the early stages of their refresh cycle.

Regional Trends

The US PC market experienced a 9.3 per cent decline in the third quarter of 2023, primarily attributed to weak enterprise PC demand. However, growth in Chromebook sales driven by replacement demand in K-12 educational institutions helped offset some of the decline. In EMEA, the PC market declined by 3.6 per cent year-over-year, with factors such as political unrest, inflationary pressures and interest rate increases contributing to the drop.

In the Asia Pacific region, a steep 20 per cent decline in China led to an overall 13 per cent year-over-year drop. In China, both consumer and enterprise PC spending remained weak, largely due to unemployment concerns and government spending cuts.

In India, new restrictions on device imports announced in August 2023 initially caused disruptions, but a revised announcement later extended the deadline to November 2023, minimising the impact on the Indian PC market for the remainder of the year.

Gartner projects a 4.9 per cent growth for the worldwide PC market in 2024, with anticipated growth in both the business and consumer segments.

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