India business news weekly roundup 04th to 09th May 2020. 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 weekly roundup 04th to 09th May 2020
- Google and Facebook have extended work from home plans for most employees for the rest of the year.
- Franklin Templeton India apologized to SEBI over comments made by Jenny Johnson, the company’s global chief executive. The asset manager claims that the comments were taken out of context.
- Vista Equity Partners agreed on buying a 2.32% stake in Jio for Rs 11367 crores.
- Researchers at IIT-Ropar developed a germicidal box that uses ultraviolet light to sanitize every small item brought from outside including groceries, vegetables, and currency notes in 30 minutes. This germicidal box uses UV at a wavelength of under 290 nanometres which modifies the DNA of microorganisms.
- The Ministry of Defence inked a Rs 1200 crore deal with Tata Power SED to upgrade 37 airbases.
- While the overall medicine sales dropped 11.2% y-o-y to Rs 10211 crores, Ipca Laboratories posted a sale growth in April.
- Shree Cement reported an 83% jump in its Q4 net profit to Rs 588 crores.
- Tanishq reopened 40 stores this week and will invite customers by appointment.
- SBI Card’s Q4 net profit dropped to Rs 83.54 crores.
- Mahindra & Mahindra announced the launch of its integrated online platform. This platform allows customers to finance, insure exchange, accessorize, and purchase a company vehicle online.
- Reddy’s Laboratories said it received approval for its facility at Srikakulam in Andhra Pradesh from the US FDA.
- Paytm Payments Bank crossed Rs 600 crores in fixed deposit accounts.
- Samsung commenced operations in its mobile factory in Noida.
- Reliance Industries is considering selling its $989 million worth of stake in Asian Paints.
- Kishore Biyani’s Future Group approached PE firms including Blackstone to reduce debt and to keep control of its group companies.
- RIL appointed nine investment banks for its Rs 53215crores worth of rights issue.
- Icra reported an existential crisis for domestic airlines that are already facing financial stress.
- HCL Tech’s CEO said the company is set to hire 15,000 freshers in 2020 but will place lateral hiring on hold.
- Bombardier said it won the Rs 2577 crore contract to produce transit trains for the Delhi-Ghaziabad-Meerut rail corridor under phase 1 of the Regional Rapid Transit System.
- Tata Motors decided to withdraw the issue of unsecured NCDs of almost Rs 1000 crores.
- BMW India said it resumed operations at its Chennai plant while adhering to lockdown guidelines issued by local authorities.
- Ratan Tata picked up a stake in Generic Aadhaar which is a pharmaceutical startup.
- PCR test for Covid-19: Mylab increases daily production capacity to 2 lakh.
- Mylab Discovery Solutions has expanded its production capacity to manufacture 2 lakh COVID-19 RT-PCR tests in a day from the second week of May.
- Daimler India said it resumed operations at its Chennai plant.
- Amazon is considering adding investment in Future Retail.
- HCL Technologies’ Q4 net profit jumped up to Rs 3154 crores, showing a little impact of COVID-19.
- HMSI restarts rebooting dealership operations.
- LetsVenture launched a growth-stage platform, LetsVenture Plus, to tap domestic capital.
- Vinod Aggarwal, managing director and chief executive of Volvo Eicher Commercial Vehicles said the on-going crisis could throw up new opportunities for the trucking industry with drastic improvement through digitalisation.
- Cochin Shipyard resumed operations in Ernakulam while its units in Kolkata and Mumbai are still shut.
- The Birla family is planning to move to the SC as Harsh Vardhan Lodha gets reinstated as director in two MP Birla group companies.
- Uber said it will cut nearly 3700 full-time jobs while CEO Dara Khosrowshahi will forgo his base salary for the rest of the year.
- Maruti India announced that it will commence manufacturing operations at its Manesar based factory from 12 May onwards. The company also said it will re-open 600 dealerships and start deliveries of vehicles.
- GlaxoSmithKline is selling $3.45 billion worth of stake in Hindustan Unilever.
- Persistent Systems reported a 4.7% dip to Rs 83.82 crores in its net profit between January-March.
- Royal Enfield and TVS Motor said they have resumed operations in their manufacturing facilities.
- Snapdeal and Medlife have partnered for medicine delivery and for users to book health check-ups & diagnostic tests.
Do read: What is Today in History India 9 May
India business news weekly roundup 04th to 09th May 2020
- The Ministry of Corporate Affairs has allowed companies to hold AGMs via video conferencing during 2020.
- Ford India announced its launch of contactless sales and servicing of vehicles as its dealerships resume operations.
- Airtel and Zee5 extended their partnership. Airtel customers will now have free access to Zrr5’s premium content library.
- The distributor body, Foundation of Independent Financial Advisors, has reportedly written a letter to RBI, finance ministry and Sebi requesting that RBI buys illiquid bonds from fund houses as banks are lending only against AAA-rated papers and this may result in a large number of non-AAA segments going for bankruptcies.
- Smartphone manufacturers are expecting to quickly gain sales after an ease in lockdown.
- Airtel Thanks customers will now get free access to ZEE5’s premium content. Depending upon their payment plans, Airtel Thanks subscribers already have access to content from Amazon Prime, HOOQ, Eros Now and Wynk Music, and other providers.
- Wipro has signed a MoU with the Maharashtra government to repurpose one of its IT campuses in Pune, to a 450-bed hospital for Covid-19 patients. The government will be able to use this facility for one year.
- Planning to resume sales of smartphones and accessories, Realme has requested approval from the UP government to re-open limited production lines at its Greater Noida plant.
- Many PE firms in India have been reportedly struggling to reach their targets as investors have chosen to wait out the uncertainty period due to coronavirus outbreak.
- Asian Paints has partially resumed operations at some of its manufacturing locations, offices as also warehouses where lockdown restrictions have now been eased.
- Bajaj Auto has resumed partial operations at its Chakan plant, Pune.
- Ford India announced the launch of contactless sales and service of vehicles when its dealerships resume operations.
- Reportedly over 50% of the banks have agreed to extend the moratorium on loans provided to the micro lenders.
- The Centre for Monitoring Indian Economy has said that the Covid-19 crisis has resulted in a spike in the unemployment rate of the country to 27.11percent for the week ended 3rd May.
- NBFCs have requested RBI to allow them one-time restructuring of all loans till 2021 as the borrowers are facing funding issues due to lockdown amid coronavirus pandemic.
- Indian Medical Association has suggested that based on the available evidence, it is indicated that closed space, especially a centrally a/c building, is unsafe to be opened in the current stage of coronavirus. IMA was responding to a query by IT authorities.
- IATA has favoured wearing masks and face coverings for everyone on board the aircraft, but do not favour leaving one-third seats vacant as that will not be commercially viable and may result in a hike of prices of rest of the 2/3rd seats.
- Nitin Gadkari, the Union Minister, has said that he is expecting the government to soon declare a financial package for the MSME sector.
- The government has allowed companies to conduct this year’s AGMs through video conferencing or other means of audio-visual.
- Hyundai’s MD, SS Kim in a recent interview emphasised that as companies focus on reducing dependencies, manufacturing processes and supply chains will evolve differently in the near term. He also said that the company is on the cusp of a new automation era while mapping the future for the post-covid era.
- IHFL withdrew its plea that seeks protection from any coercive action being taken against the company for not being able to pay dues to NCD holders.
- Citing revenue loss, private hospitals have approached the Maharashtra government to re-consider its order on capping prices of medical procedures during Covid-19.
- KV Subramanian, Chief Economic Advisor said India’s GDP growth is likely to hover between 1-2% in the first quarter (April-June) of this fiscal year (FY21).
- The Mumbai bench of the NCLT approved the sale of Uttam Value Steel and Uttam Galva Metallics to CarVal Investors and Nithia Capital Resources Advisors for Rs 2300 crores.
- Foxconn received an approval to reopen its plant in Andhra Pradesh.
- Hyundai Motor India has commenced preparations to reopen its dealerships.
- MG Motor India said it is planning to sanitise 4,000 police vehicles across India.
- Reliance Industries said it has agreed on selling 1.15% stake in Jio Platforms to Silver Lake Partners for Rs 5655.75 crores.
- A majority of companies are refraining from providing earnings forecasts to investors, citing business uncertainties due to the coronavirus pandemic and its impact on the lockdown and other steps taken by the government to contain the outbreak.
- Diego Graffi, CEO and MD at Piaggio Vehicles said the company will have to make some tough calls as uncertainty looms on resuming operations during the extended lockdown. The company is looking at re-strategizing their procurement process.
- The scarcity of hand sanitizers was the first visible impact of the covid-19 but supply chain disruptions are going deeper with multiple factors including factory closures, halt in international shipping, and government holding down the export of essentials.
- Rakesh Mohan, Former Secretary, Economic Affairs and Dy Governor, RBI said there is a narrow window to enact a fiscal stimulus to revive the economy.
- Uber will be operational in 31 Indian cities with social distancing measures.
- During 2019-20, CEO of country’s top mutual fund houses witnessed salary increments with their robust business’ growth. Milind Barve from HDFC Mutual Fund is the highest-paid executive.
- SAS Institute’s billionaire owner said that this would be a terrible time to lay people off. The company will also probably end its streak of recording profits every year since it was founded in 1976.
- Flipkart said it is working with sellers across India to help them prepare their businesses after the govt. allowed e-commerce companies to offer non-essential products in the orange and green zones.
- Coal India April shipments fell down 25.5% to 39.1 million tons in the month as lockdown scrapes demand.
India business news weekly roundup 04th to 09th May 2020
Start-up world, funds, funding and investments
- PE firm Carlyle agreed to acquire up to 74% stake in SeQuent Scientific, an animal health-focused pharmaceutical company, for Rs 1580 crores.
- IIT Kanpur’s incubated start-up; Nocca Robotics developed an ICU-grade ventilator for coronavirus patients. This ventilator is 90% cheaper than the imported ones.
- LoadShare, a logistics start-up, raised Rs 100 crores in a Series B round of funding led by BEENEXT.
- PhonePe launched a new invest product – Super Funds, which will invest across equity, gold, and debt funds of mutual fund companies. It will help in diversifying the risk to help investors create long-term wealth.
- fit, a fitness start-up, has downsized its operations and laid off trainers in Tier-2 markets in India citing impact of coronavirus pandemic. The company has laid off nearly 800 employees and has also permanently closed a number of fitness centres to cut costs.
- Classplus, a B2B Edtech start-up, raised $9 million in a Series A round of funding led by RTP Global.
- HDFC is planning to rise around ₹8,000 crores to increase its capital buffer as also prepare for any future uncertainties.
- Cognizant has entered into an agreement for acquiring Collaborative Solutions, a consultancy firm, for an undisclosed amount.
- Sequoia Capital India said founders of start-ups are struggling with tough choices and are looking for ways to make their organisations recession-proof.
- Dream Sports appointed its new chief corporate development officer, Dev Bajaj from Kalaari Capital.
- The board of Tata Motors has approved a proposal to raise ₹1,000 crores through NCD issuance.
- ai raised $5.1 million in a Series A round of funding led by Exfinity Ventures and Kalaari Capital.
- To meet its business requirements, HDFC is planning to raise nearly Rs 5000 crores via bonds on private placement basis.
Ongoing cases- India business news weekly roundup 04th to 09th May 2020
- FMCG firm Marico reported a 50.62% decline in consolidated net profit at Rs 199 crores for the quarter ending March 2020.
- RBL Bank reported a 54% decline in its Q4 net profit to Rs 114.3crores.
- Vedanta is planning to sell a minority stake of 20% in its Cairn Oil & Gas business to rise over $1 billion.
- Yes Bank reported Rs 2629 crores net profit for Jan-Mar 2020.
- Adani Ports reported a 74% dip in net profit between Jan-Mar to Rs 340.21 crores.
- After the resignation of Emily McNeal, Flipkart has appointed Sriram Venkataraman as CFO for its e-comm divisions – Flipkart and Myntra. Venkataraman will be reporting to Executive VP and CFO, Walmart International, Chris Nicholas.
- Volkswagen India announced the appointment of Abbey Thomas as head of marketing.
- Freshworks has appointed Tyler Sloat as its Chief Financial Officer.
- Rahul Jaimini, co-founder & chief technology officer at Swiggy resigned to join Pesto Tech as co-founder.
- Tata Steel has withdrawn its membership from the Steel Industry Body, Indian Steel Association. TV Narendran, Company’s CEO & MD has also resigned from his post as President of the Association.
- Max Bupa Health Insurance has appointed Krishnan Ramchandran as its new CEO & MD.
Airlines – India business news weekly roundup 04th to 09th May 2020
- GoAir will part-pay salaries to a majority of its staff due to revenue constraints amid lockdown.
- IndiGo said it operated 3 international cargo flights carrying over 50 tonnes of cargo. This included pharmaceutical products, fruits & vegetables, to and from Singapore and Maldives.
- Vistara has asked his senior employees to go on four days compulsory leave without pay in both May and June. The move is to conserve cash flow. They were earlier sent on 6 days compulsory LWP in April also.
- Vistara established a compulsory “no-pay” leave for a section of its employees and also reduced the monthly base flying allowance for pilots during May and June.
- Ronojoy Dutta, IndiGo CEO said the company has decided to cut salaries of senior employees from May onwards. It will also implement a ‘limited, graded leave without pay program’ during the months of May, June, and July.
- JSW Steel’s output collapsed nearly 60% in April as the lockdown extended.
IL&FS – India business news weekly roundup 04th to 09th May 2020
- The High Court has cancelled interim bail granted to Hari Sankaran, Vice Chairman of IL&FS by a trial court in an alleged fraud case in the company.