Weekly Capsule of India Business News Headlines (2nd – 8th) June 2018

Weekly India Business News 2nd to 8th June 2018.


weekly india business news 2nd to 8th june 2018




– Big Basket is preparing to launch a new private label for beauty products and fresh meat on its platform. They will be giving competition of Nykaa, which is dominating the online beauty and cosmetic market and Licious and Zappfresh in the fresh meat segment.


– After Indigo, now other airlines are also looking to raise flight ticket prices, cut non-fuel costs and boost non-aeronautical revenue to set off the impact of the rising fuel cost and weakening rupee


– Oman India Joint Investment Fund has invested Rs.100 Crore in Divgi Torq, a component manufacturer to funds its capacity expansion and diversification into new categories. This is the first investment from group’s second fund.


– Nexus Venture, India’s largest venture capital fund, has raised around $313 million for its $450 million Investment Fund. The corpus has been raised from around 29 investors. Nexus Ventures has investments in firms like Snapdeal and ShopClues.


– Idea Cellular has got approval from DoT for 100% FDI limit for its merger with Vodafone India.


– As per a report by Aviation consultant CAPA India, Air India has experienced a loss of direction, with no major strategic decisions being taken since the divestment process was announced. The report also states that if the Government doesn’t pursue the disinvestment with greater determination, it might eventually lead to its closure.


– As per the data released by data from Prime Database, a primary market tracker, 32 auditors at listed firms have resigned in last 5 months due to lack of adequate information on the company’s businesses, revenues, and tax observations.


– Mirae Asset Global Investments of South Korea is set to launch a $100 million alternate investment fund in India with a focus to primarily invest in residential projects and has already secured the AIF license.


– Locus, a Logistics platform, has raised $4 million in a fresh round of funding from Rocketship.vc, Recruit Strategic Partners, and others. Locus optimizes logistics operations for firms in various sectors and has clients like Lenskart, Urban Ladder, Licious, Tata Group.


– Tata Motors has created an electric mobility business vertical and appointed Shailesh Chandra, currently head of the business strategy, as its President.


– UltraTech Cement won the copyright infringement case against Everest Industries for using the marks ‘Ultratruf’ and ‘A One Ultratruf’ which were similar to its own registered mark ‘UltraTech’.


– GIC Holdings, the Sovereign wealth fund and Abu Dhabi Investment Authority will together invest $450 million in Greenko Energy. The funds will help in the funding of setting up of India’s first large integrated clean energy storage project, the investment for which is estimated to be around Rs50,000 crore.


– Toshiba is expected to complete the sale of 80% of its personal computer business to Sharp for $36 million, by 1st October 2018.


– India and China have failed to resolve differences on trade tariffs even after two days of talks in New Delhi. China demanded the elimination of tariff in more than 90% of the traded goods for granting non-reciprocal market access to India, while India has offered tariff elimination for 73% of traded goods


– Vijay Shekhar Sharma, CEO of Paytm and venture capitalist Shailesh Vickram Singh have launched an environmental protection fund. The fund, which aims to invest up to $150 million, will target environmental problems in the areas of food and agriculture, air and water pollution, renewable energy, recyclables such as e-waste and plastic, mobility, and sustainable development.


– Hindustan Copper is looking to restart its redundant smelter at Khetri in Rajasthan, due to the shortage of copper production, after the closure of the Tamil Nadu unit of Sterlite Industries Ltd.


– Orient Cement is planning to invest Rs3,600 crore to expand its capacity over the next 5 years. The group recently bought 2 cement units from the distressed Jaypee group.


– Ministry of Defence has given its approval for construction of a port on Subarnarekha river, Bay of Bengal in Balasore district, Odisha and the construction will start soon. This port will spur faster economic development of northern Odisha.


– Temasek and Ascendas-Singbridge Group have decided to invest $300 million in logistics and real estate projects in India. The industrial real estate is fast emerging as the go-to asset class for investors and developers.


– China announced that it was halting approvals of some new solar projects and cutting subsidies to developers in order to ease its pace of expansion. India may be the biggest beneficiary of solar industry reforms in China after its implementation.


– India’s gold import has shrunk 39% in May. It is the fifth month of decline and is said to be the highest so far this year.


– Electrosteel Steels has allotted equity shares of about Rs7,400 crore to its lenders. It has also spelled out steps to be taken for completion of its takeover by Vedanta and subsequent delisting from stock exchanges.


– Qatar Airways will “soon” move an application to launch a full-service airline in India for domestic operations which would be fully financed by Qatar’s sovereign fund.


– Adidas gears up to promote FIFA World Cup in India by leveraging digital, outdoor and on-ground activations across cities like Delhi, Mumbai, Pune, Cochin, Kolkata, Chennai, and Guwahati.


– Hindustan Construction along with its JV with MAX Group has won a Rs737 crore contract from Russia for a nuclear power plant in Bangladesh.


– Air India has delayed payment of salaries to its employees for the third consecutive month. The airline management has also not communicated to the staff as to when the salaries for the month of May will be paid.


– Sebi has increased the maximum investment limit by angel funds in venture capital undertakings to Rs10 crore from the current Rs5 crore. The minimum investment by an angel investor, however, will continue to be Rs25 lakh.


– Meesho, an online marketplace using social media platforms to drive sales, has raised $11.5 million in a series-B round led by Sequoia India. Meesho has so far raised $15 million including the latest funding.


– PremjiInvest, the family office of Azim Premji, has picked up 6% stake in Future Retail Ltd. The transaction is valued at ₹1,700 crores.Hines India has decided to sell its 50% stake in One Horizon Centre in Gurugram, which may fetch them around ₹700-800 crore. The other half of One Horizon is owned by DLF.


– CDC Group of UK has invested in IDFC arm’s third private equity fund, which will allow exit to some existing partners of IDFC Alternatives.


– IL&FS Transportation Networks has raised ₹186.11 crore in debt financing from KfW IPEX-Bank. KfW IPEX-Bank is a German Exim bank which offers financing for international projects as also offers export finance.


– IIFL Holdings has registered a real estate investment trust (REIT) with Sebi to enable the firm to raise funds. REITs are entities which primarily invest in leased office and retail assets and allow developers to raise funds by selling completed, rent-generating buildings to investors.


– Auction of Taj Mansingh hotel, Delhi, may be stalled again as Indian Hotels Company is the only bidder for the hotel. The previous auction scheduled to be held on 30th January was scrapped after criticism that the tender terms kept many potential bidders out.


– Air India is seeking short-term loans of around Rs 10 billion to meet “urgent” working capital requirements. Air India failed to pay salaries to its employees on time for the third month in a row.


– Sri Sri Tattva, the FMCG brand of Sri Sri Ravi Shankar, has earmarked Rs.200 Crore for advertising and promotion. The amount will be spent on mass media advertising, outdoor campaigns and BTL marketing. The spend will support brand’s expansion plan of opening 1000 stores in India.


– Metro Shoes has filed a case against Flipkart for selling products under a private brand – Metronaut, which is deceptively similar to their brand.


Policies & Practices:


– More than 90 cases against errant companies and individuals have been filed after the financial services dept has asked banks to review all NPA accounts of more than Rs.50 crore. Banks have also directed to get copies of passports of all individuals linked to companies where loans above Rs50 crore have been given.


– NCLT has admitted insolvency plea against Videocon filed by SBI




– India Resurgent Fund, a joint venture between Bain Capital Credit and Piramal Enterprises has invested about Rs 800 crore in a structured credit transaction and bought the existing loans of Archean Chemical from a group of public sector banks.


– The Govt is exploring possibilities of a merger of 4 state owned entities – Bank of Baroda, IDBI Bank, Oriental Bank and Central Bank. If the merger goes through, the resulting entity will become the second largest bank in India after SBI.


– The Board of Whirlpool India has approved a proposal to acquire 49% stake in Elica PB. As part of the joint JV, Elica PB India will manufacture and distribute cooking and built-in appliances under the Whirlpool brand in India. Elica PB India is a subsidiary of Elica SpA Italy operating in India since 2010.


– Eternis Fine Chemicals, an aroma chemicals company founded by Rajen Mariwala of Marico promoter family, has acquired AIMS Impex for an undisclosed sum. AIMS is a market leader in India for a popular fragrance ingredient called synthetic coumarin.


– Vedanta has paid Rs 5,320 crore and completed the acquisition of Electrosteel Steels. Vedanta, which now owns 90% in the firm, has also appointed a new board of directors.


– Mercer, the Global consulting firm, has acquired India Life Capital, the investment advisory firm. Mercer offers advice and technology-driven solutions helping firms to meet health, wealth and career needs of their employees. It operates in over 130 countries and employs more than 23,000 people.


– Kolkata based McLeod Russel India has entered into an agreement with M.K. Shah Exports Ltd, another tea producer, to sell 8 tea estates for Rs331 crore. It’s the biggest sale of tea plantations in India in decades.


– RBI said that it has ‘No-Objection’ in the merger of Capital First, Capital First Home Finance and Capital First Securities with IDFC Bank.


– ITC group has acquired Nimyle, a Kolkata based agro products company, for an undisclosed amount. The buyout will help ITC to enter into the homecare segment.




– Walmart India is planning to scale up its Kirana store programme called ‘Mera Kirana’ that helps small family-owned grocery stores modernize and now wants to make it part of its mainstream business.


– The merger of Bharat Financial and IndusInd Bank has received a no objection from BSE and NSE.


Ongoing cases:


– Binani Cement update – Supreme Court has directed lenders of Binani Cement to proceed with debt resolution process but has said that no final order to be passed till 2nd July, the next date of hearing. Meanwhile, lenders of Binani Cement have approved Ultratech’s plan to take over the firm




– The Board of ICICI has started looking for a new Chairman who can pull out the bank from its current mess. The term of the current Chairman, Mr. M.K. Sharma expires at the end of this month and he may not obtain a second term.


– Howard Schultz, the chief of Starbucks, announced his retirement from the company. He has been serving as executive chairman of Starbucks since April, last year.


– GoAir has appointed former EasyJet executive, Cornelis Vrieswijk as the CEO, after the resignation of Wolfgang Prock-Schauer in December.


– Nikon appoints Sajjan Kumar as first Indian MD and expects India to contribute around 5% of its global sales in the next two financial years.


– Infosys CEO Salil Parekh said that stricter work visa across various markets like US and Australia will not “constrain” it’s business growth as it is focussing on hiring locals and training workforce in these places.


– Lavasa Corp., which is building its first mountain city near Pune is struggling to find its new Directors after its three directors – Sharad Naik, Edna Maclaine, and Deepak Shah, resigned last month. Lavasa owes lenders more than Rs5,000 crore.


– Tariq Premji, 40, the youngest son of Azim Premji has joined the board of Wipro Enterprises as an additional director. He has been on the board of two philanthropic arms of Wipro — Azim Premji Philanthropic Initiatives and Azim Premji Foundation since 2016.


Here we cover the essential weekly India business news 2nd to 8th June 2018, hope it is helpful for you. Don’t forget to give your feedback.


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