Read Weekly India Business News 8th to 12th October 2018:
– Ikea is planning to invest around Rs1,000 crore in its first store in Bengaluru, set to open in 2020. It is also working on to start online retail operations in India by March 2019.
– Paytm is in discussions with UCWeb for acquiring its India business, which emerged as the largest mobile browser in India last year.
– The government has started compiling a list of projects awarded to Anil Ambani’s companies in UPA Government regime, the value of which is coming to around Rs.1 Lakh Crore as per initial enquiries. Data is being collected for all sectors.
– LIC has sought IRDAI permission to allow it to continue holding Tata Sons debt of around Rs.5000 Crore. Tata Sons became a private company in Sept. 2017 and IRDAI rules do not allow insurers to subscribe to financial instruments of private companies.
– Uber is exploring entering into grocery delivery space and may start its pilot in early 2019.
– Supreme Court has extended police custody of the 3 arrested Amrapali directors -Anil Kumar Sharma, Shiv Priya and Ajay Kumar by 15 days. They shall be kept in a hotel and allowed restricted mobile use.
– Godrej Consumers has decided to go slow on acquisitions and take stock of investments made till now. It has acquired 20 firms since 2010.
– Working on to strengthen relationship with vendors, Paytm Mall will not charge commissions from mobile, laptop and large appliance retailers during the festive season sale.
– Supreme Court has directed sealing of 9 properties of Amrapali group, which has liabilities of around Rs.3,000 crore to government agencies and also owes around Rs.1,000 crore to various banks.
IDG Ventures India has rebranded itself to Chiratae Ventures. The move is part of a broader strategy to appeal more to entrepreneurs in India. It is also planning to raise around $300 million under new brand name. IDG Ventures has so far invested in 76 start-ups, including FirstCry, Lenskart and Myntra.
– Amazon India is tripled offerings under private label products to 43,000 in 2018 as compared to 15,000 in 2017. The move is part of strategy to reduce its reliance on large appliances and smartphones.
– Zydus Wellness is said to be close to buying Glucon-D and Complan brands for around Rs.4500 Crores. Zydus Wellness is also reported to be in advance stages of discussions with TrueNorth, ChrysCapital and Multiples who are willing to buyout Zydus at a valuation of Rs.8500 Crores.
– As per RBI directive, Bandhan Bank shall submit its plan to bring down its promoter holding very soon. The plan shall include Offer for Sale and M&A deals.
– P&G India is said to have established a multimillion-dollar fund to invest in Indian start-ups. However, the fund size has not been disclosed yet.
– As required by RBI, WhatsApp has built a system that shall store its payments-related data locally in India. A pilot for this has already started.
– Xander Investment Management, the real estate private equity arm of The Xander Group Inc., shall invest around $350 million for development and acquisition of 4.5 million sq. ft office space in Phoenix Group’s project in Hyderabad.
– Private equity firms Blackstone Group and TPG Capital are reconsidering their plans to purchase Jet Privilege due to Jet Airways’ financial condition. They have offered indicative term sheets valuing Jet Privilege at close to $900 million.
– Cognizant Technologies has laid-off around 200 senior employees at the Director level and above this year. Last year, it had offered 400 senior employees voluntary separation.
– After G+ data leak, Google has changed its Play Store policy to reduce the number of permissions required before downloading any app.
Air India is making another attempt to raise Rs.500 crore in debt. It had also made a similar attempt last month but couldn’t succeed. The airlines need funds to meet working capital needs as also pay interest on the outstanding loans.
– Alphabet will shut down Google+ as data of around 500,000 Google+ users may have been exposed to external developers.
– Google Zoo has developed a voice-based bot for Flipkart which is being made available during the Big Billion Days sale. The bot gets customers into a haggling scenario as if they were at their local market.
– L&T has said that it has bagged orders worth Rs.1,881 crore from the domestic and international markets.
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– Ikea will open its new store in Mumbai by the end of this year and will also hold a ground-breaking ceremony of its Bengaluru store on October 2011.
– After securing a corporate agent license to enter into the insurance segment, Flipkart has partnered with Bajaj Allianz to offer customised insurance solutions for mobile phones.
– Qualcomm is planning to set up its largest campus outside the US in Hyderabad at a cost of around Rs 3,000 crore.
– Greenko Group has yet again started discussions to buy Orange Renewable from AT Capital Group of Singapore for about $925 million. The initial discussions started in June but the group later backed off.
– IKEA is expecting its online sales to be higher than its online sales in other countries, which is around $3.8 billion, 10% of its annual sales.
– A group of online sellers has approached CCI alleging Amazon gives preferential treatment to large sellers.
– Yes Bank promoters Rana Kapoor and Madhu Kapur are said to be in preliminary talks to settle a long-drawn legal case against each other out of court.
– Reliance Industries increased prices of some key petrochemicals by 10-21% in the second quarter of this fiscal year. The y-o-y increase is 17-61%.
Policies & Practices:
– RBI is unlikely to extend deadline on data localization regulations for foreign payment companies like Visa, PayPal and Mastercard. Firms have to submit a compliance report by 15th October 2018.
– CCI has made amendments in regulations to make it easier for corporations to secure approvals for M&As. The amended regulations allow parties to voluntarily suggest changes in deal structure to address competition issues.
– The government has cut excise duty on jet fuel from 14% to 11%. The move is aimed to help airlines troubled by high fuel prices.
– SBI will triple its target of buying standard loans from NBFCs to up to ₹45,000 crore in FY19. The move shall give additional liquidity to NBFCs who will gain by selling these loans on full-cash basis.
– Govt may widen basket of essential drugs and medical products. sub-committees shall be formed to categorize products according to how essential they are for healthcare.
– The due date for businesses to file their ITRs and audit reports for 2017-18 has been extended to 31st October.
– US government’s development finance institution Opic is keen to back Indian start-ups looking for Series B, C and D round of funding instead of early start-ups. Opic has a $23 billion portfolio across 90 countries and offers political risk insurance, private equity and project finance.
– 1.8 million directors have been struck off MCA rolls due to KYC failure. Around 3.2 million updated their KYC forms.
M&As and tie-ups:
– Advent International has bought Kedaara Capital’s entire 40% stake in Manjushree Technopack. The deal is said to have valued Manjushree at Rs.2,440 crore.
– Future Enterprises has acquired a 55% stake in LivQuik Technology, a Mumbai-based fintech startup operating QuikWallet mobile app. It will pay Rs.20 crore for the stake and Rs.5 crore additionally if required.
– Mercer, the Global consulting firm has acquired Mettl, an online assessment SaaS platform, for an undisclosed amount. Mettl offers solutions to track and measure technical, aptitude and psychometric skills of potential and existing employees.
– A 10-member Government panel will examine steep discounts being offered by e-tailers and whether they are subject to any restrictions in their access to dealerships from manufacturers.
Start-up world and funds:
– As per a report from KPMG, VC funding in the third quarter of 2018 has doubled to around $2.5 billion compared to the previous quarter.
– Nykaa is in early stage talks with SoftBank to raise up to $200 million. If the deal goes through, it will take Nykaa’s valuation to around $700 – $800 million.
– Alpha Capital Advisors, an investment management firm catering to HNIs and family offices, shall invest Rs.1,500 crore in consumer facing businesses over the next three to four years. The average investment is likely to be between Rs.100-150 crore in each project.
– Suminter India Organics has raised an undisclosed sum from responsAbility Investments AG’s private equity arm. Average ticket size of responsAbility can be anywhere between $5 million to $25 million.
– Salesforce Ventures, the corporate venture investment arm of US-based technology company Salesforce Inc., is keen to evaluate investment opportunities in India. Salesforce Ventures has invested in around 275 companies across 17 countries since 2009.
– Aye Finance, the small business loans provider, is looking to raise Rs.250-300 crore in a Series D funding round from new overseas investors. It has raised around ₹ 242 crore in external funding so far.
– Blackbuck, a logistics startup, has received Rs.202 Crores in a fresh round of funding with Sequoia Capital coming on board as a new investor.
Updates on ongoing cases:
– Fortis case update – Shivinder Singh has offered Delhi HC to allow him to mediate with Daiichi Sankyo in the ongoing arbitration case. HC has asked him to come up with a proposal to pay his share out of the arbitral award of Rs.3,500 crores by 30th October.
– Vijay Mallya case – Delhi court has ordered attachment of Vijay Mallya’s properties in Bengaluru. Bengaluru Police had earlier informed the court that it could not attach any of the 159 identified properties.
– Videocon update – A consortium of lenders led by SBI has sought expressions of interest from companies to monetize the assets of VOVL in Brazil, Indonesia and East Timor. It plans to get around 50-55% of the total loan value of $4.5 billion lent to VOVL.
– Essar Steel update – VTB, Russia’s second largest banking group, is set to bid solo for the Essar Steel. The Supreme Court had allowed Numatel consortium led by VTB to bid for Essar Steel.
– The government has extended tenure of P.S. Jayakumar, MD & CEO of Bank of Baroda by one year. It has already announced merger of Bank of Baroda, Dena Bank and Vijaya Bank into one entity.
– IT department searched home and office of Raghav Bahl in connection with a case of alleged tax evasion. Bahl is the founder of Quint news portal and Network18 group and is a known media entrepreneur.
– AirAsia India has appointed Tata Steel’s Sunil Bhaskaran as CEO effective 15th Nov.18. Bhaskaran is currently VP corporate affairs at Tata Steel.
– Sachin Bansal is reportedly close to investing $100 Million in Ola. If the deal goes through, it will be the largest personal investment in the Indian internet space.
– ChrysCapital, the largest India-focussed PE firm, has appointed Arundhati Bhattacharya, former SBI chairperson, as advisor. ChrysCapital manages assets of around $4billion.
News credit: Livemint, Economic Times, Business Standard