India business news headlines weekly roundup 20th to 24th May. News on Corporates, policies, budget, start-up world, funds, funding. Here’s a roundup of all the India business news that created the buzz in India this week:
India business news headlines weekly roundup 20th to 24th May
- Reliance Industries has toppled IOCL to become the country’s biggest company by revenue. It reported a turnover of Rs.6.23 lakh crore in fy 18-19 compared to Rs.6.17 Lakh Crore by IOCL.
- Instagram is investigating the massive data leak by Chtrbox, a Mumbai based social media marketing firm. Reportedly data of over 49 Million people have been leaked. The leaked data is reported to include personal data like email id and phone numbers. The company has, however, denied leak of any sensitive personal data.
- Around 40 pension and PF trusts, mainly from the public sector, have a combined exposure of approx. Rs.3,300 crores to Dewan Housing Finance.
- Air Asia is reportedly planning to double its fleet size as also launch international operations by October 2019.
- TPG Growth has signed a definitive agreement with Varian Medical Systems of the US to sell its chain of cancer treatment hospitals, Cancer Treatment Services International, for $283 million.
- Ola has suspended the food delivery business being delivered through Foodpanda. It has reportedly laid off around 40 mid- to entry-level employees as also terminated contracts of most of its 1,500 food delivery executives. Ola had acquired Foodpanda around 18 months back.
- Tech Mahindra has signed a defense contract to implement Radio Frequency Identification-based access control system across all naval bases and ships worth Rs.300 crores. This is firm’s biggest defense contract till date.
- Huawei will continue to provide security updates and after-sales services to its existing smartphones and tablets. The future of products remain uncertain after the cancellation of its Android license. Google is said to be ending the transfer of hardware, software, and technical services to Huawei due to the ongoing trade war between the US and China.
- IRDAI is planning to raise third-party motor insurance rates by around 10-20% for bikes, cars, and taxis.
- Flash Electronic, a Pune based electrical auto component maker, has filed a lawsuit in the US against Royal Enfield for patent infringement for one of its patents. Royal Enfield has, however, denied the allegation.
- Digital payment start up BharatPe has started offering small value, short duration loans to merchants in partnership with NBFCs. It is planning to apply for its own lending license.
- The board of Infosys has rewarded its CEO, Salil Parekh, by slashing a vesting period of shares to one year. Parekh can sell his performance-based shares every year, rather than the earlier stricture of 3 years. He drew a total pay package of Rs.24.67 Crores in fy 18-19.
More in India business news headlines weekly roundup 20th to 24th May
- NeSL is planning to offer its platform to insolvency professionals to store data during the bankruptcy resolution process. NeSL has plans to become a platform for data integration from banks, IPs and liquidators.
- Nippon Life of Japan is reportedly looking out to buy a stake of Reliance Group in Reliance Mutual Fund for around Rs.4500 crores. Nippon is an equal partner in the Reliance MF.
- Amazon had to withdraw 33 products showing Hindu gods after around 1.47 Lakh people lodged their protest online.
- MoC is planning to introduce an AI system in MCA 21 portal to make the compliance process easier as also to ensure that routine enforcement activities go on 24×7 on autopilot.
- ONGC, Global Infrastructure Partners and Tripura government are planning to buy a 26% stake in IL&FS in ONGC Tripura Power, which runs the Palatana power project in Tripura.
- Orix Corp. of Japan has expressed interest to buy out the remaining 51% stake held by IL&FS Wind Energy. Orix owns a 49% stake in each of the seven operating wind power plants of the IL&FS group.
M&As and tie-ups
- HIPL, a JV between DP World and National Investment and Infrastructure Fund, has acquired 76 percent stake in KRIBHCO Infrastructure for an undisclosed amount. KRIBHCO operates 3 major private freight terminals in Haryana, UP and Gujarat.
- Snapdeal has reportedly started due diligence process to acquire ShopClues. Snapdeal is also looking to raise fresh funding at a valuation of around $2 billion.
- Myntra is reportedly in an advanced stage of discussions with Under Armour, top US sportswear brand, to manage its offline India stores.
Start-up world, funds, funding and investments
- Endiya Partners has put a first close of its 2nd fund at $40 Million. The fund is looking to raise up to $70 Million by the end of 2019.
- Sundara (Mauritius) Ltd, an affiliate of PE firm Creador, has invested $18 million in iValue. iValue is a valued added distributor which provides solutions for businesses around data, network and application areas.
- Spinny, a used car online retailing platform, has raised $13.2 million in a Series a round of funding led by Accel Partners and SAIF Partners.
- Tiger Global is said to be in advance discussions for investing in Cred, a Kunal Shah startup. Cred is looking to raise around $100 million.
- Vian Systems, an AI startup set up by Vishal Sikka, former Infosys CEO, has raised a funding of $50 million from US Securities and Exchange Commission.
- KaHa, a smart wearable startup, has raised $6.2 million in a Series B round of funding led by ICT Fund. KaHa operates an end-to-end I0T platform.
Interesting read: बीजेपी के इन दिग्गजों ने दी विपक्षी नेताओं को पटखनी
- As per a reported Facebook Ad Library Report, total spending on political ads in India during Feb and May 2019 were more than Rs.26.5 Crores. Ad spends on Google and its partner properties like YouTube during this period were reported to be around Rs.27.36 Crores.
- Jet Airways update
- Hinduja Group has taken the approval of key stakeholders and Etihad Airways to bid for Jet Airways and the process is expected to start this week.
- Essar Steel update- ArcelorMittal has told NCLAT that it would pay Rs.42, 000 crores, including a minimum of guarantee of ₹2,500 crore as working capital, for acquiring Essar Steel.
- Bimal Dayal and Hemant Ruia, currently CEO and CFO of Indus Towers respectively will be appointed as CEO and CFO of the merged entity of Indus Towers and Bharti Infratel.
- Pratik Pal, VP of TCS Retail Group, has moved to Tata Sons, reportedly for driving the Digital Play business.
- ByteDance, the parent company of TikTok app, has announced the appointment of Sameer Singh as VP-monetization (India). Singh was recently CEO South Asia Operations of GroupM..