Weekly India Business News from (23rd July – 27th July)
Infosys is concerned with the increasing rejection of work visa application and said that this may result in increase in project and delays in the project implementation.
BSNL has sold 4,000 satellite phones and aims to bring up the number to 10,000 by March 2019 as there is high demand from corporates and states for the premium service. BSNL has earned ₹100 crore in revenue in one year from the satellite phone business.
DoT has told RCom that its licenses will be canceled unless it pays ₹774 crore in bank guarantees for the upcoming spectrum payment dues. This has threatened RComs deal with Reliance Jio.
Treebo group of hotels has laid off around 70-80 employees out of its total workforce of 800. The company stated that layoff is the result of Treebo doubling down on its technology products and processes, as the company looks to rationalize costs.
Wipro has won a $1 billion contract, the biggest order in four years, from Alight Solutions. With this contract, Wipro is expected to get around $70 million in additional revenue in the current financial year.
Piramal Capital and Housing Finance has invested around ₹650 crore in Samhi Group, which owns several hotels like Four Points by Sheraton and Hyatt Regency, etc. Samhi will use the funds to support its growth plans and refinance existing lenders of its three hotels —The Courtyard and Fairfield – Bengaluru, Sheraton – Hyderabad and Hyatt Regency in Pune.
Ace Turtle, which enables brick-and-mortar-brands to sell online, is now expanding into FMCG and electronics retail. They are looking to reach a GMV of ₹1,000 crore by the end of 2018. Ace Turtle is a technology-focused platform offering full stack of e-commerce operations and its customers include Max, Puma, US Polo and the likes.
Walmart India is planning to double its wholesale store presence in the next three years with 20 new stores in various cities in India. It currently operates 21 cash and carry stores in 19 cities. It has also opened its second fulfillment center in Lucknow.
RCom has got a temporary relief from TDSAT till August 10 on license and spectrum cancellation show cause notice issued by DoT.
As per the statement given by M.S. Sahoo, chairperson of Insolvency and Bankruptcy Board of India, they will soon lay down ground rules for professionals to assess value of businesses, including those going into bankruptcy. The new valuation rules will apply to corporate transactions like M&As, assets of companies responsible for over ₹8.3 trillion of bad debts.
CAIT, the traders’ body, has said that it will approach the Supreme Court if the government allows Walmart-Flipkart deal to go through. CAIT will also discuss this matter with Smriti Irani, Nirmala Sitharaman and Suresh Prabhu during a National Traders’ Conclave being organized by it.
Maruti Suzuki has crossed its production of 20 million vehicles in India from its Gurugram and Manesar facilities. The MD and CEO, Kenichi Ayukawa said that it is a testimony of the trust in the brand.
22 public sector banks, 19 private sector banks, and 32 foreign banks have signed an inter-creditor agreement to fast-track the resolution process of stressed assets under consortium lending from Rs.500 million to 5 bn.
BSNL has tied up with two Singapore based virtual network operators Plintron and AdPay, as it aims to generate additional revenue of ₹650 crore.
HDFC bank has made a change in its share sale plan, which now includes 80% of ADRs amounting to ₹15,500 cr, in the hope that it would attract more investors without Indian registration and better pricing.
Barbeque Nation has raised around ₹80-90 crore in a pre-IPO placement from Alchemy Capital Management, founded by Rakesh Jhunjhunwala. The company operates more than 80 restaurants across 42 cities in India and one in Dubai.
Online pharmacy LifCare has raised $11 million in a Series B round led by its existing investors SAIF Partners and Nexus Venture Partners. The firm claims to have over 1.5 lakh active subscribers.
Financial creditors have recovered over ₹47,000 crore in 26 cases under Insolvency and Bankruptcy Code. Corporate affairs ministry has struck off names of around 2,26,166 companies from official records for being inactive and not making statutory filings for a long time.
Delhi Metro has launched new app with additional features. The new app allows passengers to easily find out the nearest metro station and shorter routes.
Johnson and Johnson has been asked by India’s drug regulator, Central Drugs Standard Control Organisation, to reveal the composition of its talcum powder. This move came after J&J’s parent company was asked to pay $4.7 billion to 22 women who claimed they got ovarian cancer by using the talc.
NCLAT has dismissed plea of the cement firms challenging the penalty imposed by CCI. CCI had imposed a penalty of ₹ 6,700 crores on 11 cement companies including ACC, Ambuja Cement, JK Cement, UltraTech Cement, and Ramco Cements for alleged cartelization in August 2016.
NCLT has approved the bid of Liberty House to acquire the assets of debt-laden Amtek Auto Ltd. Amtek auto lenders had initiated insolvency proceedings last July whom the firm owed more than ₹12,300 crore. The company was among the first 12 large bad loan accounts, identified by RBI.
The US market regulator SEC has intensified the investigation into ICICI bank’s alleged wrongdoings. SEC, which started the probe in June 2016, sought details about the bank’s accounting practices, especially those related to loans disbursed between 2010 and 2016.
Nagarjuna Oil Corporation may be heading towards liquidation in spite of NCLT giving it a second chance for revival.
Aye Finance, a small business loan provider, has raised $10 million in debt funding from Triple Jump BV and MicroVest Funds. The firm has cumulatively raised ₹255 crore of debt since January.
Kishlay Foods, a Guwahati-based snack maker, has raised $15 million from Norwest Venture Partners and D.K. Surana, promoter of Intensive Software Services. The large organized snacks market in India is estimated to be $8 billion, growing at 20% CAGR.
NCLT Mumbai bench has rejected Jyoti Structures’ debt resolution plan and ordered the firm to file a liquidation report. Jyoti Structures is among the first 12 large corporate defaulters identified by RBI.
PMLA court in Mumbai has issued fresh summon to Nirav Modi and Mehul Choksi to appear before the court on 25th and 26th September, respectively, failing which they would be declared as fugitive economic offenders.
After Nissan, now Tech Mahindra will build IT centre in Kerala, which has allocated about 12,000 sq feet in Thiruvananthapuram. The office will start functioning within the next three months generating around 200 immediate jobs and about 2000 by the time the office is fully functional.
Social media platforms like Facebook, Instagram and Twitter have taken down a number of posts alleging that Kurkure corn puff contains plastic. Youtube has also deleted hundreds of such videos. The move comes after an interim order released by the Delhi High Court directing all the social media platforms to either remove or block access to them.
Policies & Practices:
EPFO’s payroll data suggest that around 4.4 million jobs were created in the last 9 months till May. May being the highest so far with over 7 lakh enrolments.
SEBI is keen on making it mandatory for the companies having more than ₹100 crore as long-term borrowings to compulsorily raise at least 25% of their funding needs by selling bonds. This will help reduce the concentration risk on bank balance sheets as also instill the credit discipline among borrowers.
Flipkart is planning to triple its delivery and warehousing workforce to 100,000, apart from increasing its storage capacity before its Big Billion Day sale in October.
The government is not likely to go ahead with the merger of trading firms MMTC and STC as proposed by the commerce ministry. The merger of these two firms would result in a synergy of operations, which somewhat overlap as of now.
The government informed the Parliament that RBI has the power to regulate and supervise the public sector banks. This could be an indication that the Government is unlikely to take any action to address the problem of dual regulation flagged by RBI.
RBI is going to shut down the corporate debt restructuring system following its latest framework on stressed asset resolution. It has asked the CDR cell to transfer all the pending cases to respective lead banks to complete the resolution
Hindalco Industries is closing in on $2.3-2.5 billion acquisition of Aleris Corp. The discussions are now being headed by Kumar Mangalam Birla, the Chairman of Aditya Birla Group.
Vodafone India and Idea Cellular have made a joint payment of ₹ 7,248.78 crores under protest for the merger of their mobile business to the DoT, out of which ₹3,926.34 crores have been paid in cash and ₹ 3,322.44 crores have been furnished as bank guarantee.
The Chairman of JSW Steel, Mr. Sajjan Jindal, says that JSW will turn around and merge the bankrupt Monnet Ispat, within a year. The Company is investing ₹45,000 crore over a period of four years from FY2017-18 to FY2020-21 in order to expand its steelmaking capacities and modernize and expand its capacities of downstream businesses.
Bharti Airtel, Infratel has received clearance from SEBI for its merger with Indus Towers. It has now approached NCLT for approval. Post the deal, Bharti Airtel and Vodafone shall be in joint control of the company and the transaction will close by the end of 2018-19, subject to statutory approvals.
DoT has given its final approval to the Vodafone and Idea merger after its dues towards one-time spectrum charges were paid by the telecom firms through ₹3,900 crores in cash and ₹3,300 crores in bank guarantees.
Hindalco has agreed to buy Aleris at a value of $2.58 billion after which Hindalco-Novelis will become world’s largest aluminium downstream player. This is Hindalco’s second major overseas acquisition after acquiring Novelis for $6 billion in 2007.
Vokal, a voice-based knowledge sharing platform, has raised $5 million in its Series A investment round from Shunwei and others. It plans to invest the fund in product development, hiring and growth in other languages. Vokal is a peer-to-peer knowledge-sharing platform that was created specifically for India’s non-English internet users.
Toutiao, one of world’s most valuable starup, has launched an app called Helo in India to take on the digital media startups like Dailyhunt, ShareChat and Clip. It also targets to take on Facebook.
LoginRadius, a cloud-based customer identity platform, has raised $17 million in a funding round led by ForgePoint Capital and Microsoft’s Venture Fund M12. Cloud-hosting platform allows businesses to securely manage and transact with customer identities.
Vijay Mallya update- Vijay Mallya has informed the ED about his willingness to return to India after the agency has begun to confiscate his assets in India and abroad under the Fugitive Economic Offenders Ordinance.
PNB fraud case- CBI has asked Antigua to provide details of Choksi’s whereabouts. As per the latest revelation to CBI, Mehul Choksi has fled to Antigua after securing a local passport, which will now prevent the Indian investigating agencies from closing in on him as India does not have an extradition treaty with Antigua.
PNB Fraud update- Mehul Choksi took his oath for Antiguan citizenship 15 days before CBI filed its first case against him in the PNB fraud. With Antiguan citizenship, Choksi can now travel to 132 countries on his Antiguan passport including EU and UK.
Shyam Prabhakar Mardikar, CTO of Bharti Airtel, has resigned. CTO of Reliance Jio, Jagbir Singh, has also resigned from his position.
The majority of IHH Board has approved its decision of buying out Fortis Healthcare but it was not a unanimous decision. The Chairman of the audit and risk management committee voted against the plan.
Mehul Choksi has moved Prevention of Money Laundering Act court in Mumbai seeking cancellation of non-bailable warrant issued against him. He has claimed that he risks the chance of being ‘physically harmed’ if he returns to India.
Tata AIA Life has elevated Rishi Srivastava as new CEO & MD we.f. August 01. He will replace Naveen Tahilyani who is moving to AIA Group Hong Kong as CEO.
Mobikwik restructured its senior management team by appointing three new executives. Deepak Batra has been appointed as the head of online business, Chandan Joshi as head of organized retail and Jalaj Khurana as head of unorganized retail.
Tata Sons has brought Amit Chandra, the nominee director of Tata trusts, on to a committee that will review a proposal on funding expansion of Vistara, its venture with Singapore Airlines, indicating that the policy followed by Cyrus Mistry might be reversed.
Sergio Marchionne, Ex-Fiat Chrysler CEO and a supporter of Ratan Tata, died on Wednesday, from complications arising out of his shoulder surgery.