Weekly India Business News from 2nd July to 6th July 2018

Read Weekly India Business News from 2nd July to 6th July 2018.

India Business News from 2nd July to 6th July 2018

Corporates:

GST collections rose to Rs 95,610 crore in June. The collections in the previous month were Rs94,016 crore. Hasmukh Adhia, the Finance Secretary says if fake bills are not issued, then GST revenues would improve further.

Walmart has set a target of June 7, 2019 to complete the Flipkart deal. The share purchase pact completion deadline has been put as March 9, 2019.

Tata Motors has edged out Mahindra & Mahindra to become No.3 passenger vehicle maker in India in June. Tata Motors sold 18,213 units against 18,137 units sold by M&M.

ATM Industry has sought immediate intervention to correct the fee structure in loss-making ATM deployer industry. The latest RBI directions to reconfigure cash vending machines will increase the cost by around 25%.

Facebook confirmed to sharing user data with 52 companies, including Apple, Amazon, BlackBerry, Samsung, Alibaba, Qualcomm and Pantech and said that it shared data to improve integrations and user experience across various platforms and devices.

Hindustan Unilever is aggressively suing smaller consumer goods makers for trademark violation to safeguard its brands. It has so far filed around 30 cases since the beginning of 2018, to restrain copycats from manufacturing and marketing identically packaged products.

Godrej Appliances is pushing for sales through its exclusive outlets in small towns to drive growth. It currently gets around 3-4% of its revenue from exclusive brand outlets in tier-II, III and IV cities, which it is now targetting to push up to 10%.

Four companies – Chalet Hotels, The LaLiT hotel chain owner Bharat Hotels, Milltec Machinery and IndiaMART InterMESH, have filed draft share sale documents with Sebi to raise a total of around ₹4,300 crore.

Everfoods, the packaged foods platform of Everstone Group, has entered into an agreement to acquire Australian Foods India, selling fresh baked cookies under the Cookie Man brand through its network of 50 plus stores/kiosks in malls and airports in over 20 cities across India, for an undisclosed amount. Everfoods had earlier acquired Modern brand, the bread and bakery business of HUL.

Volkswagen group shall invest Rs7,900 crore (€1 billion) under its India 2.0 plan through its sister brand Skoda. The two brands are targetting to have a combined market share of 5% by 2025.

Competition Commission of India has given its approval to the proposed merger of Bharti Infratel and Indus Towers, the tower arm of Bharti Airtel. This approval was the first step among several other requirements for the merger.

Nestle has now entered into the packaged breakfast market with its brand – Nesplus offering cereals in four multigrain variants. India’s breakfast cereal market is projected to touch ₹2,610 crore by 2020.

As per the reports, Tencent is working on to bring its could service – Tencent Cloud, to India. To differentiate itself from competition, Tencent will initially focus on niche offerings for video and live streaming products.

As per a study carried out by security experts from the Horst Görtz Institute at Ruhr-Universität Bochum, all 4G mobile phone users are at the risk of hacking. Hackers can identify the web pages you visit and re-route them to a scam website.

Everstone Capital has now put off its plan to acquire Kenstar, a Videocon Group-owned home appliances brand. Insolvency proceedings against Videocon are said to be the reason for PE’s decision to back out.

IFC has invested ₹640 crore in Mahindra and Mahindra Financial Services, which will enable growth for Mahindra by extending loans to farmers and enable them to buy vehicles, tractors and other equipment.

InCred gets RBI nod for wholesale lending business. It plans to begin wholesale lending from August and is in talks to raise fresh funding of around ₹600 crore for the same.

Automation Anywhere, a robotics process automation firm, has raised $250 million in a series A round led by New Enterprise Associates and Goldman Sachs. The funding values the company at $1.8 billion. RPA is a fast-evolving technology which uses bots to automate business processes.

MacroWagon Retail, one of Flipkart’s largest vendors, has sent a legal notice to Flipkart on non-payment of dues and damages of around Rs.20 Crores.

As per the details shared by Facebook, Airtel and Saavn had access to FB user data even after 2015. Airtel had said that the access ended in 2013.

Government’s flagship scheme to go paperless at airports has hit a hurdle as UIDAI has refused to share biometric data with the aviation authorities. The aviation authorities are now exploring other identity options.

Amazon is looking to leverage its Prime Now app in top four cities during its Prime Day sale to offer ultra-fast two-hour delivery. It will offer 200 new launches across categories during its Prime Day sales to be held on 16th and 17th July.

The Bank of China has received a license from RBI to launch its operations in India. Of late, India and China have been focusing on expanding their economic ties despite several issues like the boundary dispute.

SEBI has approved Yes bank to start its mutual fund business. This approval is subsequent to RBI’s approval granted to Yes Bank to sponsor mutual fund.

The Supreme Court has asked Jaiprakash Associates to deposit ₹650 crore to prove it is bona fide after it failed to deposit ₹1,000 crore. Supreme Court had directed JAL to deposit ₹1,000 crore by 15 June to avoid liquidation of its subsidiary, Jaypee Infratech.

SEBI has issued final show cause notice to NSE for allowing preferential access to some brokers in Aglo trading case. Algorithmic trading refers to use of electronic systems to execute thousands of orders in a split second.

Future Lifestyle Fashions has reached a conditional agreement to buy 29.9% stake in Koovs, online fashion retailer, for ₹140 crore. The move is part of Group’s plan become one of the largest online fashion retailers.

Inventus Capital is in the process of making a first close for its third fund of Rs175 crore by early next month. Inventus is targeting a total corpus of Rs325 crore for the fund. The firm plans to stick to investing in series A companies, investing in around 12-15 companies.

At the 41st AGM of Reliance Industries, Mr. Mukesh Ambani, announced the rollout of Reliance JioGigaFiber, a wired broadband service. The services will be rolled out across 1,100 cities in India. A new Jio Phone, the Jio Phone 2 was also announced. Reliance is also planning to enter into the e-commerce sector.

Asia Healthcare has raised $50 million from Sheares Healthcare, a Temasek-owned Singapore state investor, and is planning to use the money to grow and diversify the platform. AHH invests in single-specialty healthcare businesses in India and South Asia.

PAG, an alternative investment firm from Hong Kong, is planning to enter India. PAG invests in distressed assets, real estate, asset-backed lending, pre-IPO financing and investment in high-yield bonds.

Liberty House says that its resolution plan for Adhunik Metaliks and its sister concern Zion Steel has received lenders support. The deal of approx. Rs.600 Crore is said to be approved with a 99% majority.

Supreme court has approved the auction of three Unitech properties, estimated to be worth ₹600 crore. 4,688 homebuyers have lodged claims for the refund of approx. ₹1,865 crore from Unitech.

Bid for Assam Co., currently undergoing insolvency resolution under NCLT, is expected to be opened in a week’s time. The acquisition race has narrowed down to just four contenders. Speculations are high that the firm may go to B R Shetty, the Abu Dhabi based billionaire, who has put a bid of around Rs.700 Crore for the firm through his investment arm.

Artha India Ventures, a Mumbai-based seed-stage investor, has made the first close for its maiden fund, Artha Venture Fund, at ₹40 crore. AVF is an early stage fund targeting a total corpus of ₹200 crore with a green shoe option of another ₹100 crore in next 6-12 months. The first close saw participation from listed companies, domestic family offices and HNIs.

Ginger chain of hotels is planning to sell six properties in various locations like Goa, Bengaluru, Pondicherry, etc. The move is part of the strategy of its parent company, Indian Hotels Company, to become less ownership driven.

Nykaa, the online grooming platform, has launched its an exclusive men-only platform called Nykaa Man. The move is to get a sizeable market share in the $1.4 billion men’s grooming market in India.

Policies & Practices:

The Government will soon come out with a definition for shell companies. Although it has an action plan ready to fight the black money menace, the absence of a definition for shell companies under the legal framework is hampering investigations.

M&As:

Traders and shopkeepers have threatened to move Supreme Court against Flipkart Walmart deal arguing that the deal would drive small and medium-sized offline retailers and traders out of business. However, the Walmart says the Flipkart acquisition will boost manufacturing in India by providing thousands of local suppliers access to consumers through the marketplace model. Most of the analysts and experts expect that despite traders’ protests, the Flipkart-Walmart deal will go through.

Paytm has acquired NightStay, a hotel booking platform for around $20 million signaling their entry into the hospitality sector. NightStay is a members’ only app selling the unsold inventory of hotels at huge discounts.

Tata Group is evaluating a proposal to merge its food and beverage businesses into a single company. The move is aimed at increasing efficiency and to simplify the group operations that include around 100 independent operating companies.

Anil Agarwal’s Volcan Investments is planning to acquire Anglo American Plc’s South African business by merging it with Vedanta Resources through a share swap. The merger, if goes through, will create an entity valued at about $7 billion.

Manappuram Finance has acquired an 85% stake in Indian School Finance Co. from existing impact investors Gray Matters Capital and Caspian. The deal values Indian School Finance Co., focussed on education sector lending, at ₹248.5 crore.

Shareholding of ICICI Prudential AMC in NTPC has increased to more than 5% after it purchased shares under the fund house’s various schemes, including ICICI Prudential Bluechip Fund, Bharat 22 ETF.

Alchemist ARC is planning to acquire control and restructuring stressed companies admitted to NCLT for insolvency by tying up with strategic players with relevant industry and operational experience.

Start-ups:

HungerBox, a food tech start-up, has raised $4.5 million in a Series A funding round led by Neoplux, a South Korean investment firm and India’s PE fund, Sabre Partners. HungerBox, which is said to clock six million orders a month in over 160 digital cafeterias caters to clients including Microsoft, McKinsey, Qualcomm, and Accenture.

Ongoing cases:

PNB scam- Sunil Mehta, MD of PNB bank has said that there are positive developments in Bank’s favour and if it is proved that the fraud money was used to run the operations of Firestar Diamond, then PNB will be able to get something out of insolvency proceedings.

Vijay Mallya case – In a more to recover some amount from the asset sale, India’s service tax authorities, after four failed attempts, have succeeded in selling the private luxury jet of Vijay Mallya for Rs.38.4 Crore to US-based Aviation Management Sales.

Binani case: SC has directed NCLAT to adjudicate upon all issues and transferred the matter from NLCT Kolkata bench to the insolvency appellate authority in Delhi.

Fortis case – Prospective bidders are unlikely to bid aggressively for Fortis due to the ongoing investigation into its financial irregularities. Fortis is running on an emergency cash infusion as of now. The last date for bidding is today.

Essar Steel update – NCLT has sought an explanation from the insolvency resolution professional of Essar Steel Ltd for rejecting the first round of bids. ArcelorMittal had challenged disqualification for rejection on the grounds that it had exited Uttam Galva before submitting Essar Steel bid.

Fortis update – IHH Healthcare and TPG-Manipal are the only two bidders left for Fortis. Hero-Burman and Radiant Healthcare have opted out of the process. The binding bids will be evaluated by the board of directors in consultation with its advisors.

Essar steel update – NCLAT wants to decide whether the resolution applicants ArcelorMittal India and Numetal were eligible during the first round of bidding for Essar Steel before it proceeds to other insolvency issues.

Vijay Mallya case update – The Bangalore police informed that it has identified 159 properties belonging to Vijay Mallya but they were unable to attach it to them as some of them were already attached by ED of Mumbai Zone and remaining were part of the liquidation proceedings.

People:

The Bank Boards Bureau has recommended Anshula Kant, deputy managing director of SBI for the post of MD in the bank. It has further recommended names of 15 officials for the posts of managing director and chief executive officers in several public sector banks.

Swiggy has appointed Vivek Sunder, ex MD of P&G’s East Africa operations, as its first Chief Operating Officer.

Zomato has hired Mohit Gupta, former COO MakeMyTrip, as CEO of its online food delivery business. Zomato witnessed exit of several senior executives in the recent past.

Wipro promoted Rajan Kohli, its digital business head, to the rank of President. He will also continue to be global head of Wipro Digital and report to Abidali Neemuchwala, the CEO.

The Chief Minister of Kerala, Pinarayi Vijayan, convinced Nissan to build their global technology hub in Thiruvananthapuram. He believes that it will pave way for other major companies like Tech Mahindra and Microsoft, who have already hinted their interest, to set up facilities in Kerala.

Hinting at the impending retirement of Mr. Aditya Puri, the CEO of HDFC Bank, Mr. Deepak Parekh, the Chairman said that the Board will look at both internal and external candidates to fill up the position.

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