General Awareness

BUSINESS AND ECONOMY - February 2017

Feb 2017

Apr 10, 2019

YouTube's Largest and Fastest Growing Market

With substantial growth in India's internet coverage and data growth, India has become YouTube's largest and fastest growing market with 265 million Indians watching the video-sharing website every month.

TechM to Buy Stake in lnfotek and Vitaran

Tech Mahindra will acquire 18.1% stake each in Infotek Software and Systems (ISS) and Vitaran Electronics for a consideration of up to Rs. 13 crore.
Tech Mahindra intends to leverage the presence of the firms in the radio-frequency identification (RFID) space in building a strong footprint in the asset monitoring, tracking and automated billing solutions space.
The investment will also help expand Tech Mahindra's solution portfolio to cater to the smart city projects.

Tata Sponge Iron Ltd. Completes Acquisition

Tata Sponge Iron Ltd. (TSIL), a Tata Steel subsidiary, has announced the completion of its acquisition of the steel business of Usha Martin Ltd.
TSIL said that it completed the acquisition, which included UML's steel business undertaking along with captive power plants.
The acquired business comprises a one million tonne per annum (mtpa) alloy-based long products making facility in Jamshedpur, an operational iron ore mine, a coal mine under development, and captive power plants.

Adani Closer to Mine Construction

Adani Enterprises has taken a step closer to the construction of its coal mine in Australia after the Federal government gave a green light to the multi-billion dollar project's groundwater management plans.
Adani Group entered Australia in 2010 with the purchase of the greenfield Carmichael coal mine in the Galilee Basin and the Abbot Point Port, near Bowen.
The mine had been a controversial topic with the project expected to produce 2.3 billion tonnes of low-quality coal.

Lending Rates Being Slashed

Equated monthly instalments (EMIs) are set to fall with banks announcing a cut in their lending rates.
The country's largest lender, State Bank of India (SBI) led the way cutting the interest rate on its loans by 5 basis points (bps).
As a result, the one year marginal cost of funds based lending rate (MCLR) of SBI, to which most loans are linked, will now drop to 8.5%.

Apr 09, 2019

India Highest Recipient of Remittances

According to the World Bank report, India retained its position as the world's top recipient of remittances with its diaspora sending a whopping USD 79 billion back home in 2018.
India was followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion).

Terms for Jet Airways Sale

State Bank of India invited bids from strategic and financial investors for stake sale in the cash-strapped Jet Airways.
SBI, the lead bank of the consortium of lenders of Jet Airways (India) Ltd. has offered bidders a maximum of 75% stake (8,51,98,037 shares). The minimum stake on offer is 31.2% (3,45,42,383 shares).
SBI Capital Markets Ltd. on behalf of the SBI, has invited expression of interest (EoI) for a change in control and management of Jet Airways. The last date for receipt of EoI is April 10.
Selected bidders are required to submit binding bids by April 30, 2019.
A competitive bidding process would be followed for identification of a suitable investor to acquire ownership of the company on as-is where-is basis.
The winning bidder is expected to settle the obligations of the company in relation to existing bank loan facilities.

RIL Denies Links to Money Laundering Probe

Reliance Industries Limited (RIL) has denied any links to a $1.2-billion money-laundering case being probed in the Netherlands.
The allegation was Dutch pipeline company, A Hak, NL, earned $1.2 billion in profit by over-invoicing its services and works rendered to Reliance Gas Transportation Infrastructure Ltd. (RTGIL), now known as East West Pipeline Ltd. (EWPL).
This money was allegedly 'creamed-off' to Singapore-based Biometrix Marketing Limited, a company reportedly linked to RIL.
Biometrix is the same firm that the Indian tax authorities are probing for the Rs. 6,500 crore investments made in firms belonging to RIL or its promoter group in 2007-08.

ThoughtSpot to Invest in India Centre

ThoughtSpot, a U.S.-based company that is into artificial intelligence (AI) and helps organisations empower their employees with the ability to quickly uncover data-driven insights through a Google-like search, has announced plans to invest $25 million at its engineering centre in Bengaluru to hire talent and support its global business.
With the new funding, ThoughtSpot would be able to expand its engineering centre in India.

Adani Power Gets LoI to Buy Korba West

Adani Power has been awarded a letter of intent (LoI) to acquire debt-laden Korba West Power Company.
The company has been awarded the letter of intent for Korba West Power Company Ltd. (KWPCL).
The committee of creditors of KWPCL, a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, has approved the resolution plan submitted by Adani Power.

Apr 08, 2019

IRDAI Eyes Instalment Mode Of Insurance Claim Settlement

Insurance regulator IRDAI is planning to give policyholders an option to receive payment of claims in instalments under certain policies like personal accident (PA) and benefit-based health insurance.
The regulator had set up a working group to study a proposal in this regard and the panel had submitted its report in January 2019 after examining the concept of settlement of PA and benefit based health insurance claims in instalments.
Now, the IRDAI has come out with draft guidelines and sought comments from stakeholders.
It is of the view that the option of settlement of claims in instalments will ensure that claimants have regular income for a reasonable period of time upon happening of a contingent event.
The draft guidelines said the policyholders may be provided an option of choosing either settlement of claim
in lump sum or in equated instalments, or both in parts.
Further, insurers should put in place a procedure to capture the option exercised by the policyholder at the point of sale and at various stages of the policy.

Valecha Engineering Arm Headed for Insolvency

The dedicated bankruptcy court has admitted an insolvency plea filed by India's third largest private sector lender Axis Bank against Valecha LM Toll, a subsidiary of infrastructure firm Valecha Engineering, for defaulting on about Rs. 105 crore of loans.
Axis Bank had given term loans of ₹100 crore to the company in November 2010. However, the company was declared a non performing asset (NPA) in November 2016.
The lender has annexed the annual report for the year ending March 2017 to show that liability has been admitted by the company and to show that the erosion of substantial net worth raises doubt about the company's ability to continue as a going concern.
The tribunal has also appointed Udayraj Patwardhan as interim resolution professional (IRP) for the resolution of the company.
Valecha LM Toll is primarily a road infrastructure company that works on the 'build, operate and transfer' (BOT) model.

Everstone to Acquire Controlling Stake in Sahyadri Hospitals

Private equity firm Everstone Group has signed an agreement to acquire a controlling stake in Sahyadri Hospitals Ltd, the largest hospital chain in Maharashtra.
Founded in 1994, Pune-based Sahyadri Hospitals currently operates five tertiary care and three secondary care hospitals with 750 beds across Pune (Deccan Gymkhana, Nagar Road, Kothrud, Bibwewadi, Kasba Peth and Hadapsar), Nashik and Karad. Sahyadri has more than 1,000 clinicians and 2,300 supporting staff, providing medical services.
A combination of primary and secondary capital outlay is expected to increase the bed count significantly in the next five years.
The investment will help Sahyadri to cement its position as the leading healthcare chain in Maharashtra. Financial details of the transaction were, however, not disclosed.
Everstone, which manages $4 billion in assets, is one of the largest India-and South East Asia-focused healthcare investor, specializing in rolling up assets on their platforms.
In 2015, Everstone had successfully exited Global Hospitals, a large multi-speciality tertiary hospital chain, generating strong returns.

China to Step Up Bank Reserve Ratio Cuts to Help Small Firms

China will step up its policy of targeted cuts to banks' required reserve ratios to encourage financing for small and medium-sized businesses that play a key role in economic growth.
Beijing has been urging banks to continue lending to struggling businesses, especially smaller private concerns that account for more than half the country's economic growth and most of its jobs.

Professional CEO to Run Bisleri Int'l

Bisleri International is close to hiring an external CEO for spearheading the company. Michael Page India, which is working on the mandate, is expected to conclude the CEO search soon.
This will be for the first time that Bisleri International is run by a professional CEO.
Chauhan, who has turned 78 years, has helmed the operations of the company for over four decades, ever since he founded Bisleri International.
His daughter Jayanti is not keen on taking on the mantle.
Even after a professional CEO takes charge, Chauhan said he would continue as chairman.
The business of bottled water is galloping at a growth rate of over 20% annually.

Netflix Pulls Support for AirPlay

San Francisco Netflix has withdrawn support for Apple's AirPlay, a feature that let people watching Netflix on their iPads and iPhones to instantly play the content on their TVs
The move came as a shock to fans as Netflix for iOS had been supporting AirPlay since 2013.
The news comes after Apple in March, announced Apple TV+, a subscription-based streaming service scheduled to launch soon.

Apr 07, 2019

Boeing Set to Cut 737 MAX Production

Boeing will cut production of its troubled 737 MAX airliner in April, underscoring the growing financial risk it faces the longer that its best-selling plane remains grounded after two deadly crashes.
The company said that starting in mid-April it will cut production of the plane to 42 from 52 planes per month so it can focus its attention on fixing the flight-control software that has been implicated in the crashes.
The move was not a complete surprise. Boeing had already suspended deliveries of the MAX in March, after regulators around the world grounded the jet.
Preliminary reports into accidents in Indonesia and Ethiopia found that faulty sensor readings erroneously triggered an anti-stall system that pushed the plane's nose down. Pilots of each plane struggled in vain to regain control over the automated system.
In all, 346 people died in the crashes. Boeing faces a growing number of lawsuits filed by families of the victims.
Boeing also announced it is creating a special board committee to review airplane design and development.
The announcement to cut production comes after Boeing acknowledged that a second software issue has emerged that needs fixing on the MAX - a discovery that explained why the aircraft maker had pushed back its ambitious schedule for getting the planes back in the air.

Apr 06, 2019

Panel to Oversee Essar Steel's Operations

Essar Steel's committee of creditors (CoC) has set up a monitoring committee to oversee the operations of the steel firm and ensure smooth transition to ArcelorMittal, the successful resolution applicant.
The monitoring committee is headed by resolution professional Satish Gupta and has four members from the lenders and three from ArcelorMittal.
The lenders, SBI, IDBI Bank, ICICI and Edelweiss Asset Reconstruction Company, have their representatives as members of the monitoring committee.
The development comes after the National Company Law Appellate Tribunal (NCLAT) asked the CoC to set up a monitoring committee to oversee the operations of the steel firm and smooth transition to ArcelorMittal.

Lakshmi Vilas and Indiabulls Merger

Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance (IBHF) boards approved merger of the two entities.
The merger would solve LVB's capital needs as its capital adequacy ratio will go up to 20.6%, post the merger, due to the mortgage lender's strong capital position.
IBHF, which has a loan book three times bigger than LVB, and was unsuccessful in getting a bank licence earlier, will now get access to the low-cost funds of the bank.

Britannia Eyes to Generate Turnover

As per Jayant Kapre, Business Head, Adjacencies and New Business, Britannia Industries Ltd. (BIL) is aiming to generate Rs. 500-crore turnover from three new non-biscuit snack products it launched recently.
The new products are cream-wafers, salted snacks and croissants.
The company is trying to increase the share of non-biscuit segments in its turnover. While biscuits account for about 70% of BIL's turnover, non-biscuit products such as cakes, rusk, bread and dairy have a share of about 23%.

CII Gives Approval for Proposed L&T-Mindtree Deal

The Competition Commission of India (CCI) approved diversified group Larsen & Toubro's (L&T) proposed acquisition of up to 66.15% stake in IT firm Mindtree Ltd. L&T has made an unsolicited offer to acquire a majority stake in Mindtree. CII approved acquisition of up to 66.15% of the total equity shareholding of Mindtree Ltd, on a fully diluted basis, by Larsen and Toubro Ltd.

Government Sells Enemy Shares in Wipro

The Centre sold enemy shares worth Rs. 1,150 crore in IT major Wipro to Life Insurance Corporation, General Insurance Corporation and The New India Assurance Co Ltd. The Custodian of Enemy Property for India offloaded more than 4.43 crore shares of the company at a price of Rs. 258.90 apiece, data available with the BSE showed. The proceeds would add to the government's disinvestment kitty.

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