Here are the Business Headlines as on 4th May 2017:
- Online travel company, MakeMyTrip, is raising $330 million (Rs 2,110 crore) through a share sale to existing investors Ctrip and Naspers to consolidate its dominant position in the Indian market. Fresh funds would be used for business expansion, strategic investments, technology and product development apart from working capital purposes.
- Facebook Inc reported a 76.6 per cent surge in quarterly profit fueled by robust growth in its mobile ad business. Mobile ad revenue accounted for about 85% of the company’s total advertising revenue of $7.86 billion in the first quarter ended March 31, 2017.It is is expected to generate $31.94 billion in mobile ad revenue globally in 2017.
- Cognizant Technology Solutions has floated a voluntary separation option for its employees at the senior management level – from director level to senior vice-president. Depending on the executive’s post.A minimum of nine-month salary will be paid as compensation.
- Mahindra and Mahindra SmartShift, an aggregator for cargo owners and transporters is working on plans to enter at least five-six cities within this financial year. It is currently operating in only three major cities — Hyderabad, Mumbai and Bangalore.
- The Enforcement Directorate (ED) arrested Vijay Choudhary, promoter of Zoom Developers,a project development and management company, in connection with a bank loan fraud case to the tune of Rs 2,650 crore under the Prevention of Money Laundering Act (PMLA). Choudhary is charged with money laundering through various shell companies in UK and Switzerland.Zoom developer’s projects include process plants and industrial & engineering projects.
- BPL, the Consumer electronics brand, has scrapped its three-year partnership with Flipkart and has inked a deal with Amazon India to sell TVs, air-conditioners, washing machines and other large appliances. BPL was unhappy with the lack of visibility for their brand on Flipkart and believed the e-commerce firm did not promote BPL, resulting in lower-than-expected sales.
- Madison World, the largest independent media company in India, has acquired a controlling stake in Integrated Brand-comm Pvt. Ltd., the Bengaluru-based brand consulting and public relations firm.
- Investment unit of global private equity firm KKR & Co.LP, invested about Rs.1,000 crore in three real estate projects last month. The investments were made in 3 projects; about Rs500 crore in a township project of Bhartiya City Developers Pvt. Ltd in Bengaluru, Rs200 crore in Signature Global’s affordable housing project in Gurugram and Rs300 crore in three projects of Chennai-based Prince Foundations Ltd.
- Fortis, India’s 2nd largest chain by market value, shall soon see a change of ownership with two suitors in the fray. Funds TPG and GA have joined hands at one end and IHH Healthcare, Asia’s largest healthcare group, is the other contender for the USD 2.8 billion deal.
- Growth in India recovers after the currency swap uncertainty and is visible in consumer demand patterns. A Nielsen report indicated that daily groceries and home and personal products have shown the highest growth in March quarter over the last 2 years.
- Automobile sector is upbeat in view of the normal monsoon projection and hopes to get equally distributed sales in urban and rural India.
- PepsiCo has started regional language labeling in a bid to boost up its flattening carbonated soft drinks category.
- Amtek Group promoter’s (part)stake is being put up for auction by lenders to raise about Rs.5000 Crores.
- Dodla Dairy has raised $50 million through Rise Fund of TPG Growth. Dodla sells about 9 lakh litres of milk and 6 tonnes of milk products everyday through 50,000 outlets in 66 regions of South India, Maharashtra, MP, Rajasthan, Gujarat and West Bengal.
- Ratan Tata’s RNT Capital Advisers and existing investor Falcon Edge Capital invested Rs670 crore in Ola in the November funding round in which it raised Rs1,675 crore from SoftBank Group Corp.
- Online automobile segment, contributing less than 1% to the $125 billion Automobile sector, is seeing action from CarTrade and CarDekho. CarTrade recently acquired Adroit Inspection and had earlier acquired CarWale. CarDekho has made nine acquisitions over two years.
- Online driver aggregator services have started aggressive action in recent months. DriveU has acquired DriversKart to grow its drivers pool to 2000. There are others like Zuver, Party Hard Drivers Ezi Drives competing in the space.
- Trupay, Fintech startup, has moved to offline payment solutions and has seen decent growth in recent months.