India Business News Weekly Roundup 11th to 16th May 2020

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India business news weekly roundup 11th to 16th 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 11th to 16th may 2020

Corporates: India business news weekly roundup 11th to 16th May 2020

  • ITC has launched Savlon hand sanitizers at 50 paise per sachet.
  • Maruti Suzuki India has issued guidelines for employees to reduce interaction with customers at service stations. So far, the company has trained almost 80000 service staff at its 3800 service centers across the country.
  • Christiane Hamacher, CEO Biocon Biologics, said the company is expecting to recover its earnings in April-June, post the COVID-19 disruption.
  • Harley Davidson said it will now provide home delivery for its motorcycles. The company has also claimed that it will extend service warranties in most of the major cities of the country.
  • Dabur India, with inspiration from PM Narendra Modi’s speech, launched a #Vocalforlocal series of campaigns on Facebook, Instagram, and Twitter for its various brands including ayurvedic Red toothpaste, Amla hair oil, Real fruit juices, Chyawanprash and Hajmola digestive tablets.
  • Unichem Laboratories received the EIR (establishment inspection report) from the US FDA for its active pharmaceutical ingredients unit in Roha.
  • Zomato is set to lay off 13% of its workforce as the COVID-19 induced lockdowns have hit its food delivery business. The company also plans to temporarily cut 50% pay for the rest of the employees, starting from June.
  • IT firms and banks are vacating their rented offices or renegotiating their leases in bid to cut fixed costs and rework expansion plans.
  • After giants like Facebook, Google, and Twitter announced work from home till 2021, Unacademy, an ed-tech startup in India also announced 60% of its 1,000-strong workforce to work from home permanently.
  • The Delhi High Court on Thursday restrained Zydus Wellness from airing its Complan ad that compared its health drink with Horlicks.
  • The Federal Bank has tied up with MoneyGram, a global leader in cross-border P2P payments and money transfers, to expand Account Deposit Capabilities to millions of consumers in India.
  • Credit rating agency – Icra said Indian airlines will need Rs 35,000 crores of fund infusions till FY23 to stay afloat, as lower revenue and higher fixed costs erode their profitability.
  • According to India Inc, the proposed labor code which advocates universal minimum wage and promotes formalization of the workforce, is a step in the right direction. The code also intends to modify the definition of inter-state migrant workers, which will allow welfare benefits to move with the movement of labor.
  • Tata Trusts is upgrading 4 government hospitals to convert them into COVID-19 treatment centers. This process to develop four hospitals – 2 in Maharashtra and 2 in Uttar Pradesh will complete by June.
  • Tough scrutiny of foreign investment in India has upset Xiaomi and Oppo who were seeking to expand beyond selling hardware for a bigger share of the South Asian country’s competitive financial services market.
  • Cognizant sees another churn among VP and SVP levels, where employees are making exits from the firm.
  • Real Estate players in Kolkata lauded the rental housing initiative announced by Finance Minister Nirmala Sitharaman on Thursday.

Do read: What is Today in History India 16 May

India business news weekly roundup 11th to 16th May 2020

  • ONGC awarded 49 marginal producing oil and gas fields to 7 companies under a government plan to raise production amid the coronavirus crisis.
  • Maharashtra FDA urges NPPA to cap prices of N95 masks/PPE kits to ensure availability.
  • Adidas on Thursday announced to hold a sporting event – #hometeamhero challenge to unite and help make a difference by dedication their workouts for good. The company will donate $1 to the WHO’s Covid-19 Solidarity Response Fund for every hour of tracked activity between May 29 and June 7.
  • Finance Minister Nirmala Sitharaman on Wednesday said the union government will extend the Vivad se Vishwas scheme till the end of December. This means businesses have been offered six more months to settle their direct tax disputes.
  • FMCG firms are hoping that measures announced by Finance Minister Nirmala Sitharaman on Wednesday might generate demand as consumers will now have cash, which has been made available in the form of cuts in the TDS and contribution towards EPF.
  • Finance Minister on Wednesday offered relief to real estate developers by asking the states and UTs to extend registration and completion date by 6 months of all projects under the RERA. This applies to all real estate project registrations that expire on or after 25 March.
  • Maruti Suzuki India will retain its Rs 2700 crores capital expenditure plan for this financial year despite a slowdown due to the coronavirus outbreak.
  • To aim at curbing the spread of the coronavirus, Uber Technologies on Wednesday said that it has globally made it mandatory for drivers, delivery workers, and riders to wear a mask.
  • Vedanta’s delisting plans from Indian bourses via his Singapore holding company – Vedanta Resources, may see minority investors feeling shortchanged.
  • Hewlett Packard Enterprise deployed 4 COVID-19 test labs and 4 OPD centers across the country to assist central and state governments in curbing the coronavirus outbreak.
  • Maruti Suzuki India on Wednesday said that its board approved the supply of SUV Vitara Brezza to Toyota Kirloskar Motor.
  • LG Polymers on Wednesday said it sent an 8-member technical team from Seoul to India.
  • Tata Motors on Wednesday announced that it commenced operations at its Pantnagar and Sanand facilities post approvals from relevant government authorities.
  • According to a survey by IP-driven incubation lab BridgeLabz Solutions LLP, over 84.48% of engineers and tech graduates are utilizing the lockdown to reskill or up-skill themselves to stay updated.
  • Glenmark Pharmaceuticals on Tuesday said it began phase 3 clinical trials for its generic antiviral drug favipiravir in India to treat mild to moderate COVID-19. The company expects to complete the study by August.
  • Siddharth Shah and Aakash Choubey, partners at Khaitan & Co. said the future of private equity seems to be positive and the industry is most likely to be a net-gainer during the pandemic.
  • Twitter on Tuesday became the first major tech company to allow some employees to work from home permanently.
  • Gilead Sciences has signed non-exclusive voluntary licensing agreements to give royalty-free licenses for remdesivir to Cipla, Jubilant Life, Hetero Labs, Mylan, and Ferozsons Laboratories. The company in a release on Tuesday said the royalty-free license will last until a new drug or vaccine is developed against Covid-19.
  • Arvind Lal, chairman of Dr Lal PathLabs said revenue for India’s diagnostic labs from regular (non-covid-19) testing procedures have crashed as COVID-19 soars.
  • Cognizant defers joining date of campus recruits from India to the September quarter of 2020 and assures students that it will honor the offers the company made.
  • Vedanta on Tuesday announced its plans to delist itself from the stock exchanges.
  • TCS iON launched a platform for students to find virtual internships. The internship projects will address the needs of graduate students from engineering, science, and business streams.
  • Honda Cars and Toyota on Tuesday announced their decision to reopen showrooms and service centers across the country with set operating procedures to adhere to social distancing norms.
  • Biocon Biologics received EU certification for its Bengaluru plant.

Must read: Coronavirus: Do you know how challenging it is for Doctors and healthcare workers to work while wearing a PPE Suit?

India business news weekly roundup 11th to 16th May 2020

  • Maruti Suzuki India on Tuesday said it will resume operations at its Manesar plant on a single shift basis from today onwards.
  • Rahul Bhatia IndiGo’s biggest shareholder is considering a bid for Virgin Australia.
  • Piaggio Vehicles on Monday resumed operations at all its 3 Baramati plants.
  • Maruti Suzuki India is planning to restart production with 50% workforce from today onwards.
  • Sanjiv Chadha, CEO of Bank of Baroda said that after RBI permitted banks to provide a 3-month moratorium, 90% of eligible borrowers of Bank of Baroda opted for it.
  • The government is likely to issue clarifications to its recent notification on Chinese FDI norms.
  • The SC on Monday dismissed the Birla family petition on a 4 May Calcutta high court order that sought reappointment of Harsh Vardhan as director in 2 MP Birla companies.
  • Daimler India Commercial Vehicles on Monday announced new appointments of two senior executives Karl-Alexander Seidel and Muthu Maruthachalam C.
  • General Atlantic may invest up to Rs 10000 crores for a 2% stake in Jio Platforms. This is among a series of stake sale initiatives by Reliance Industries to build confidence among potential investors as it heads for India’s biggest rights issue.
  • Ratan Tata on Monday said that entrepreneurs must look for opportunities to innovate, adapt, and find new solutions to make businesses disaster-proof amid the ongoing coronavirus pandemic.
  • E-commerce platforms including Amazon and Flipkart are scaling back fast to pre-lockdown levels as people have started buying apparel, smartphones, and grooming products among other items.
  • Deepinder Goyal, the Zomato CEO, announced an extension of all Gold memberships by 4 more months across countries that include India, UAE, Australia, New Zealand, Portugal, Philippines, Indonesia, Turkey, and Lebanon.
  • General Atlantic and Saudi Arabia are among firms that are exploring to invest in Mukesh Ambani’s digital business as he seeks to expand his operations outside oil and petrochemicals.
  • Indian airlines warned that a prolonged lockdown would cripple flight operations forever. Knowing the circumstances, they are pushing for an early resumption of domestic flights from key metros.
  • Infosys is reopening its offices but with caution. In the first phase of resuming operations, about 5% of staff will return to work.
  • Tech Mahindra has been issued a notice by the Pune Labour Commisioner’s office. This was because an IT employee welfare organization filed a complaint claiming that the company reduced salaries to maintain profitability.
  • Reliance Industries has fixed 14 May as the record date for the rights issue. This is going to be India’s biggest rights issue of Rs 53,125 crores.
  • Senapathy Kris Gopalakrishnan, a veteran from the information technology industry believes that a quarter of Indian startups would be in serious trouble if adverse consequences of COVID-19 persist for long.
  • Nasscom on Sunday announced the successful delivery of its end-to-end COVID-19 platform creation to the Telangana government.
  • REITs is likely to suffer lower yields on deferment of new office leases and zero rent escalation in the near future.
  • Following relaxations in Covid-19 lockdown rules, IT companies in Hyderabad were allowed to resume operations with a 33% workforce while on Saturday, the police asked them to gradually ramp up operations without rushing.
  • Credai on Saturday said cement and steel rates hiked 40-50% in the last few weeks despite lockdown and alleged price cartelization & unfair trade practices by manufacturers.
  • After announcing a paycut of up to 25% on Friday, IndiGo airlines said the reduction would remain effective throughout FY 2020-21.
  • Panasonic India resumed the sale and service of appliances in green and orange zones.

Start-up world, funds, funding and investments – India business news weekly roundup 11th to 16th May 2020

  • InterGlobe Enterprises Pvt Ltd has expressed its interest in bidding for the bankrupt airline, Virgin Australia Holdings in the first round of a sale process that concluded on Friday.
  • Cipla on Friday said its boards approved a proposal to raise up to Rs 3000 crores via the sale of equity shares or equity-linked instruments.
  • Stepathlon Lifestyle, a fitness startup, on Friday said it raised an undisclosed amount from nine investors across India, Australia, the US, UK, and Canada.
  • ZiffyHomes, a Gurugram-based home rental startup, deferred payments of several vendors and are yet to pay for their leased properties amid the COVID-19 crisis.
  • ACT Grants, a not-for-profit grant created to fight COVID-19, got fresh funding from Bill and Melinda Gates, Michael and Susan Dell, and Wadhwani foundations.
  • SirionLabs, a SaaS startup, raised $44 million as part of a Series C round of funding led by Tiger Global and Avatar Growth Capital.
  • Intello Labs, an Agritech startup, raised $5.9 million in a Series A round of funding led by Saama Capital.
  • Kotak Mahindra Bank on Wednesday reported a fall of 10.03% in its net profit for the March quarter due to higher provisioning.
  • Jet Airways insolvency resolution professional on Wednesday invited fresh bidding.

Do read: India News Headlines: Latest India Business News 16th May 2020

Finance and Stats – India business news weekly roundup 11th to 16th May 2020

  • Biocon reported a 42% fall in profit in Q4 to Rs 123 crores as COVID-19 disrupts the biologics business.
  • Cipla posted a 33% decline in its consolidated net profit for Q4 to Rs 246 crores as the company’s operational performance was weakened by the COVID-19 disruption and high base for sales last year.
  • Manappuram Finance’s total gold loan disbursements during fiscal 2020 rose to Rs 1.7 trillion from Rs 89649 crores last year.
  • Siemens reported a 39% drop in its March net profit at Rs 172 crores as customers postpone CAPEX.
  • Godrej on Wednesday reported a 75% drop in its consolidated net profit at Rs 229.90 crores in the fourth quarter ending March 2020.
  • Maruti Suzuki India on Wednesday reported a 28% year-on-year decline in its Q4 net profit to Rs 1292 crores.
  • Nestle India’s net profit for the March quarter jumped up to 13.5% at Rs 525 crores.
  • Havells’ Q4 net profit dropped 10.7% to Rs 177.7 crores.
  • Urban Company has reported a 103% jump to Rs 216 crores in its FY20 revenue led by demand in beauty and wellness.
  • Piramal Enterprises on Monday reported a Q4 consolidated net loss of Rs 1703 crores.
  • Shiprocket raised $13 million in a Series C round of funding led by Tribe Capital, Innoven Capital, and Bertelsmann India Investments.
  • Adani Transmission on 9th May reported a Q4 net fall by 60% at Rs 58.97 crores.
  • ICICI on Saturday reported its Q4 net profit of Rs 1221.36 crores.

Must read: Latest India News: Today News Headlines 16th May 2020

People – India business news weekly roundup 11th to 16th May 2020

  • Vijay Mallya has been denied the right to appeal for his extradition to India in the UK Supreme Court.
  • Nirav Modi will face a second extradition hearing on 7 September on two charges of intimidating witnesses and destroying evidence by the Indian government.

Do read: Indian Batsmen with the most ODI run records in SENA Countries

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