21/01/2026

BIZ & FINANCE WEDNESDAY | JAN 21, 2026

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BHP achieves record first-half iron ore output

IKEA plans to more than double investment in India over 5 years CHENNAI: Sweden’s IKEA will more than double its investment in India to over 200 billion rupees (RM8.9 billion) in the next five years as the furniture retailer plans to open more stores and increase sourcing locally, a top executive said on Monday. IKEA, which opened its first India store in 2018 in the southern city of Hyderabad, will begin accepting online orders in four other cities where it currently does not have a physical presence, including Chennai and Coimbatore, in Tamil Nadu state. “(India) is not a large IKEA country yet ... but the belief in India is very strong that it will be one of our top markets,” said Patrik Antoni, CEO of IKEA India, in an interview with Reuters. The retailer’s India sales rose 6% to 18.61 billion rupees in the year ended August 2025, and Antoni said it plans to quadruple it, including by expanding store count to 30 from six. The company plans to start online operations before opening a brick-and mortar store in new cities – a first for IKEA globally – as young consumers shop online more to beat traffic, said Bhavana Jaiswal, country e-commerce integration manager. Its online sales account for over 30% of the total India sales. The retailer aims to raise the share to 40% of total sales. IKEA will also double production for domestic stores and exports to €800 million (RM3.78 billion), said Antoni. The company’s move comes as global brands ramp up export production in India to cut costs, while consumer majors from shoemaker Asics to carmaker VinFast Auto also step up sourcing to meet domestic demand. US President Donald Trump doubled tariffs on imports from India to as much as 50% last year on some goods, forcing many industries to find new clients in other countries. Antoni, however, said it has not affected IKEA’s Indian suppliers much, as the brand, which has most of its stores in Europe, ships more to other markets. – Reuters South Korean watchdog: Intervention in private equity industry inevitable SEOUL: The head of South Korea’s financial market watchdog yesterday said authorities would respond sternly to the business practices of private equity funds that undermined fairness and credibility. “The market order has been disrupted recently by the illegal and unfair behaviours of some private equity firms, with infringements on investor interests greatly undermining social confidence in the industry,” Lee Chan-jin, governor of the Financial Supervisory Service, said during a meeting with local private equity firms. Lee said public intervention in the market was inevitable to restore the industry after recent instances of illegal and unfair practices. He vowed to sternly respond to such practices, without specifying any examples. The meeting with 12 local private equity firms was held as MBK Partners, a pioneer in North Asian markets with more than US$32 billion (RM129.6 billion) in capital, is being investigated by South Korean prosecutors and financial authorities over its sale of troubled supermarket chain Homeplus. MBK Partners was not one of the 12 attendees at the meeting with Lee. – Reuters

increase to US$8.4 billion (RM34 billion) from a previously estimated range of US$7 billion to US$7.4 billion reported in July 2025. It said the cost increase reflected con struction hours and quantities of materials that were not included in previous estimates. When the project was approved in August 2021, the initial investment cost for Jansen stage one was US$5.7 billion. BHP said iron ore production from its Western Australia operations on a 100% basis was a record-high 146.6 million metric tonnes in the six months ended Dec 31, a 1% increase from the same period last year. For the December quarter, iron ore production on a 100% basis was 76.3 million metric tonnes, up from 70.2 million tonnes in the September quarter. The second-quarter iron ore production beat a Visible Alpha consensus estimate of 74.3 million tonnes. The miner kept its full-year iron ore output forecast unchanged at 284 million to 296 million tonnes, noting the strong first-half production had put BHP in a solid position ahead of the typically wet third quarter. – Reuters

preserve and productivity,” BHP said in a statement. “This has seen some impact to realised price.” The statement is a rare acknowledgement from the world’s biggest listed miner about the impact of its protracted negotiations with CMRG, which has been trying to extract better terms for Chinese steelmakers, in an unfolding scenario that will be closely watched by its peers. While BHP has been raising its production of copper, iron ore is still its biggest profit generator. Since September, China’s state-owned iron ore buyer has ordered steel mills and traders to stop purchasing multiple types of BHP iron ore, sources have told Reuters. RBC Capital Markets analyst Kaan Peker said CMRG’s restrictions on purchases by Chinese steelmakers were likely to tighten spot market availability and support the headline index price, offsetting the higher discounts BHP was facing. BHP shares were down 2% yesterday amid weakness in the broader mining sector. BHP separately said the total investment estimate for its Jansen stage one project would operational flexibility

MELBOURNE: BHP Group has accepted lower prices for some iron ore sales while it negotiates a 2026 supply deal with China, it said yesterday, as it reported record first-half production of the key steelmaking ingredient. The Melbourne-headquartered miner also flagged a 20% jump in costs for its Jansen potash project in Canada. BHP is hammering out annual contract terms with state iron ore buyer China Mineral Resources Group (CMRG). It flagged it is looking to sell more of its products in other markets. “During negotiations, we continue to opti mise product placement distribution channels and take actions within our operations to o Miner flags price concessions as it negotiates 2026 supply contract with top China buyer

China snacks firm Busy Ming eyes US$428m in HK IPO BEIJING/SINGAPORE: Chinese retailer Busy Ming is seeking to raise up to US$428 million (RM1.73 billion) in a Hong Kong initial public offering (IPO), betting that its strategy of offering snacks and beverages at ultra-low prices will help it win over investors as it has done with customers.

Its pitch comes at an opportune time for discount retailers as consumers remain wary amid sluggish economic growth that has stoked concerns about job and income stability. Retail sales in the world’s second-largest economy grew 3.7% last year, far below pre-pandemic levels. Headquartered in Changsha and in business since 2017, Busy Ming has grown into a national player in China’s fragmented snack market by focusing on small pack sizes and budget-friendly pricing. It operates the Busy for You and Super Ming chains. Both offer similar product line-ups, with Busy for You concentrated in south China and Super Ming concentrated in north China. The offering will consist of 14.1 million shares priced between HK$229.60 and HK$236.60 (RM119.39 and RM123). At the top of the range, it would bring in about HK$3.3 billion and value the company at about HK$50.7 billion. There is also an overallotment option of up to 15% more shares. Cornerstone investors include Tencent, Temasek, BlackRock and FIL Investment, according to its prospectus. The company said proceeds will go towards supply chain improvements and product development, as well as upgrading its store network and supporting franchisees. It also plans to invest in brand building, technology and selective acquisitions. Unlike many retailers chasing e-commerce growth, Busy Ming sells exclusively offline, aiming to drive foot traffic with prices about 25% below the average of comparable supermarket offerings. At its stores – which number just over 19,500 and are almost all franchised, there are egg tarts at 1.65 yuan apiece, Coca-Cola at 1.8 yuan a bottle, self-branded oolong tea at 1.9 yuan, and single servings of snacks like quail eggs and chicken feet. Its shelves include goods from more than

A customer shops for snacks while an employee restocks products on a shelf at a Zhaoyiming Snacks store, also known as Super Ming, a chain operated by snack and beverage retailer Busy Ming Group, in Beijing. – REUTERSPIC

Ben Cavender, managing director at Shanghai-based China Market Research Group, said its business model looks durable because it attracts traffic across small and big cities alike and offers a broad range of snacks. Busy Ming’s offering is expected to price on January 26 and the shares are due to begin trading on Jan 28. Goldman Sachs and Huatai International are acting as joint sponsors. – Reuters

750 multinational and domestic brands such as Mars, Pepsi, Starbucks and Genki Forest. A Beijing store manager, Chi Huanhuan, said the biggest draw is affordability.“We save money for our customers and that’s why they come to us.” According to its prospectus, in the first nine months of 2025 revenue climbed 75% to 66.1 billion yuan from a year earlier. Busy Ming estimated 2025 profit at not less than 2.3 billion yuan.