General Awareness

BUSINESS AND ECONOMY - May 2018

May 2018

Jan 04, 2021

Metal Giants in Race for Uttam Galva

Metal billionaires Lakshmi Mittal, brothers Sajjan Jindal & Naveen Jindal, and Anil Agarwal (of Vedanta) have shown an interest in Uttam Galva Steels, which has been put on the block by lenders. Mittal has the highest exposure to Uttam Galva's liabilities of Rs. 9,742 crore, followed by other financial and operational creditors.
Phoenix Asset Reconstruction Company (ARC), owned by Kotak Mahindra, has also thrown in its hat for Uttam Galva, for which the initial bid deadline ended last month. The ARC too has an exposure to the 35-year-old, Mumbai-based company's liabilities.
Uttam Galva, founded by Rajendra Miglani, is among the largest makers of value-added steel in western India with facilities located at Khopoli, about 75 km from Mumbai. Value-added steel is used in automobiles, aerospace and consumer durable industries. The company posted a loss of Rs. 140 crore on a revenue of Rs. 277 crore in the first six months of FY20.

Exports Fall 0.8 per cent in December, Trade Deficit Widens

Contracting for the third straight month, India's exports slipped marginally by 0.8 per cent in December 2020 even as the trade deficit widened to USD 15.71 billion due to the rise in imports.
Exports in December 2020 stood at USD 26.89 billion, as compared to USD 27.11 in the same month of 2019.
The rate of contraction in the country's outbound shipments has improved against a decline of 8.74 per cent in November, mainly due to the increase in shipments of certain sectors such as gems and jewellery, engineering and chemicals.
After a gap of nine months, imports in December recorded a positive growth of 7.6 per cent at USD 42.6 billion. In February 2020, it had registered a rise of 2.48 per cent.

Chinese Firm Bags Rapid Rail Contract

The Centre's strained financial position has compelled it to award a contract to a Chinese company for a vital section of the Delhi-Meerut Regional Rapid Transit System (RRTS).
India has so far borrowed $1.5 billion (over Rs. 10,000 crore) from the Asian Development Bank (ADB), Manila, and the New Development Bank, Shanghai, for the Delhi-Meerut RRTS, the first of its kind in the country on which sleek, aerodynamic trains will attain top speeds of 180 kmph.
Both banks make it conditional that its members must get to participate in tenders. As China is a member of both NDB and ADB, Shanghai Tunnel Engineering Company Limited was permitted to compete, and it won the tender for the construction of a 5.6-km underground stretch, from New Ashok Nagar to Sahibabad. The National Capital Region Transport Corporation (NCRTC), which awarded the tender to the lowest bid among five competitors, suggested the ADB's procurement guidelines for lending do not permit discrimination with member countries in bidding.

ADB to Provide $231 mn Loan to Enhance Power Generation Capacity in Assam

The Asian Development Bank (ADB) will provide a USD 231-million loan to augment electricity generation capacity in Assam through construction of a 120-megawatt (MW) hydroelectric power plant.
ADB and the Government of India signed the loan agreement.
This is the third tranche loan for the ongoing Assam Power Sector Investment Program, which was approved by the ADB board in July 2014. The programme, including its two previous tranches, focuses on enhancing capacity and efficiency of the energy generation and distribution systems in Assam to improve electricity service to end users.
The proposed hydroelectric project is run-of-the-river project over Kopili river which will help increase electricity supplied from clean energy by 469 gigawatt-hour (GWh) by 2025 and reduce greenhouse gas emissions by 3.6 lakh tonnes of carbon dioxide annually.

Jan 03, 2021

TCS Completes Buyout of Postbank Systems

IT major TCS completed acquisition of 100% shares of Postbank Systems AG (PBS) from Deutsche Bank AG.
PBS has been the internal IT provider for Postbank AG, a subsidiary of Deutsche Bank, catering for the German retail banking market. It has approximately 1,500 employees across nine locations in Germany.
The transaction will see the employees of PBS become a part of the Mumbai-based company.

IFSCA Becomes Member of International Organisation of Securities Commissions

International Financial Services Centres Authority (IFSCA) has become an associate member of the International Organisation of Securities Commissions.
The International Organisation of Securities Commissions (IOSCO) works closely with the G20 and the Financial Stability Board in setting up the standards for strengthening the securities markets.
The IOSCO Objectives and Principles of Securities Regulation have been endorsed by Financial Stability Board as one of the key standards for sound financial systems.
The membership of IOSCO would provide IFSCA the platform to exchange information at the global level and regional level on areas of common interests.
The first International Financial Services Centre (IFSC) in the country has been set up at the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.

RBI launches Digital Payments Index

The Reserve Bank of India has constructed a composite Digital Payments Index (DPI) with March 2018 as the base period to capture the extent of digitization of payments across the country.
The DPI for March 2019 and March 2020 work out to 153.47 and 207.84, respectively, indicating (an) appreciable growth. Going forward, RBI-DPI will be published on the central bank's website on a semi-annual basis from March 2021 onwards with a lag of four months.

Ford and Mahindra Call Off Deal

Ford Motor Co said that it was calling off its automotive joint venture with India's Mahindra and Mahindra Ltd due to the challenges caused by the COVID-19 pandemic.
The companies said in separate statements that the decision was driven by changes in the global economy over the last 15 months, causing both to reassess their capital allocation priorities.
The deadline to finalise a joint venture between the companies was Dec. 31, and both made the decision to end the agreement rather than close a deal or extend the timetable to do so.

Jan 02, 2021

Zhong Shanshan Replaces Mukesh Ambani as Asia's Richest Man

Zhong Shanshan, founder of bottled water company Nongfu Spring, has overtaken Reliance Industries Chairman Mukesh Ambani as the richest person in Asia, with a net worth of USD 77.8 billion.
As per Bloomberg Billionaires Index, Zhong's net worth has surged USD 70.9 billion making him the richest man in Asia above both Mukesh Ambani and China's Jack Ma.
It has been one of the fastest growth in wealth. Two major factors behind the surge in his wealth are the mega listings of his vaccine manufacturing company Beijing Wantai Biological Pharmacy Enterprise Co in April followed by that of his bottled water company Nongfu on the stock markets.
Globally, he is the 11th richest individual, just a rank above Ambani, who is the 12th richest in the world now with a net worth of USD 76.9 billion. Ambani's net worth has grown by USD 18.3 billion.

Interest Rate on PPF, NSC, Other Small Savings Schemes Unchanged for Q4

The government kept the interest rates on small savings schemes, including PPF and NSC, unchanged for the January-March quarter amid moderating bank deposit rates. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 % and 6.8 %, respectively. Interest rates for small savings schemes are notified by the Finance Ministry on a quarterly basis.
"The rates of interest on various small savings schemes for the fourth quarter of 2020-21 ending on March 31 shall remain unchanged from those notified for the third quarter (October 1-December 31, 2020)", the Finance Ministry said in a notification.

IDBI Bank Sells Stake in its Life Insurance Arm to Ageas

Private lender IDBI Bank has concluded the sale of 23 per cent stake in IDBI Federal Life Insurance Company Ltd (IFLI) to Ageas Insurance International NV for a consideration of Rs. 507 crore. With this, Ageas will hold 49 per cent stake in the insurance venture, which is now being rebranded as Ageas Federal Life Insurance Company.
In August 2020, IDBI Bank had inked a pact to sell up to 27 per cent in IDBI Federal Life to venture partners Ageas and Federal Bank. Of the total shareholding to be divested, 23 per cent was to be sold to Ageas while Federal Bank would acquire up to four per cent stake.

ICICI Bank and Google Pay Collaborate to Bring Digital Registration of FASTag

ICICI Bank has announced that it is collaborating with Google to issue FASTag. It has become the first bank to join hands with Google Pay for the issuance of FASTag.
Customers will now be able to order, track and recharge ICICI Bank FASTag via the Google Pay app. Currently, Google Pay users could recharge their FASTag on the app, but purchasing one directly from the Google app was not possible.
The new partnership will now allow users to conveniently order, track, and recharge ICICI Bank FASTags from the app itself. The government has made January 1, 2021, as the new date for mandatorily adding FASTags to vehicles.

Jan 01, 2021

JMC Projects Bags Building Orders Orders Worth Rs. 698 crore

Engineering firm JMC Projects bagged orders worth Rs. 698 crore in the South India.
As per the company's CEO and Deputy Managing Director S. K. Tripathi, order inflows for the current year have crossed Rs. 6,700 crore, and the company remains confident to achieve the targeted numbers for the financial year 2020-21.
JMC Projects (India) Limited is a subsidiary of Kalpataru Power Transmission Ltd.

Agrochemicals Firm UPL Completes Pre-payment of $410 Million Senior Notes

Agrochemicals manufacturer UPL completed the pre-payment of USD 410 million of 3.25 per cent senior notes due in October 2021.
The pre-payment, which concluded on December 28, was done using the cash on its balance sheet. This pre-payment is in line with its commitment to reduce debt.
UPL, earlier known as United Phosphorus Ltd, is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates and specialty chemicals besides offering crop protection solutions.

Ahmedabad, Pune, Chennai most Affordable Housing Markets of 2020

Ahmedabad is the most affordable housing market in the country with an affordability ratio of 24 per cent followed by Pune and Chennai at 26 per cent each in 2020.
While Mumbai is the most expensive market, with affordability ratio of (61 per cent), other cities like Ahmedabad, Chennai and Pune are relatively more affordable.
The affordability ratio for Mumbai has improved from a high of 93 per cent in 2010 to 61 per cent in 2020.
According to Knight Frank's proprietary Affordability Index 2020, which tracks the EMI (Equated Monthly Installment) to income ratio for an average household, has shown improvement in affordability over the last decade.
The Knight Frank Affordability index captures movement in key constituents like property prices, home loan interest rate and household income that determine the buyer's ability to purchase a house.

Dec 31, 2020

Kalpataru Power Transmission Bags Orders

Kalpataru Power Transmission Ltd (KPTL) secured new orders worth Rs. 900 crore in the domestic and overseas markets. The company won orders in the T&D (transmission and distribution) business from the overseas market.
KPTL also bagged engineering, procurement and construction orders for pipeline laying and associated works in India.

Chhattisgarh Signs MoU to Set Up India's 1st Ethanol Plant under PPP Model

Chhattisgarh government signed a contract execution (MoU) for the country's first ethanol plant to be set up in the state under the public-private partnership (PPP) model.
The contract was signed by Bhoramdev Cooperative Sugar Factory Kawardha and Chhattisgarh Distillery Limited's subsidiary NKJ Biofuel for a period of 30 years.
Chief Minister Bhupesh Baghel said that setting up of ethanol plant will prove to be important in ensuring timely payment of sugarcane price to farmers and ensuring full utilisation of sugar factory capacity.
The establishment of the ethanol plant will generate direct and indirect employment opportunities and will form the basis for economic prosperity in the region.
The present government of Chhattisgarh has kept the issues related to farmers and their development work paramount. The State government was the first to waive the agricultural loans and in view of the interest of the sugarcane farmers, the ethanol plant is being set up by the PPP model as a permanent solution to the economic hardship of sugar factories.

RIL Completes Acquisition of IMG Worldwide's Stake in Sports Management JV

Reliance Industries Ltd has completed acquisition of IMG Worldwide LLC's stake in their sports management joint venture IMG Reliance Ltd (IMG-R). Accordingly, IMG-R has become a wholly-owned subsidiary of Reliance Industries.
Reliance Industries Ltd announced that it will buy out IMG Worldwide LLC from their sports management joint venture (JV) for Rs. 52.08 crore.
RIL had formed an equal joint venture with IMG Worldwide, an international sports marketing and management company, in 2010 to develop, market and manage sports and entertainment in India.
IMG is a global leader in sports, fashion, events and media, operating in more than 30 countries, and is a part of the Endeavor network.

Godrej Consumer Forays into Home Cleaning Products

FMCG maker Godrej Consumer Products Limited (GCPL) forayed into home cleaning products, a segment which is witnessing fast growth after the pandemic.
The Godrej group firm would provide surface cleaning and disinfecting solution under its newly-launched brand Godrej ProClean.
According to the marketing research firm AC Nielsen, the home cleaning products segment, which includes branded floor, toilet and bathroom cleaners, is estimated to be around Rs. 2,600 crore.
ProClean aims to cater to the rising demand for home hygiene products especially in the current context where there is emphasis on products that offer protection against germs.

Reliance-BP Consortium Invites Bidders for Gas from KG D6 Basin

Reliance Industries Ltd and UK's BP Plc have invited companies to bid for the sale of gas produced from the KG D6 basin, which will be available from February 1. Both the energy giants have formed a joint venture to develop and produce gas from deep water fields in the KG-D6 block off the Kakinada coast.
The gas produced for KG D6 will be available for sale at the delivery point at Gadimoga near Kakinada, Andhra Pradesh tentatively from 01 February 2021.
The KG D6 field is located about 60km from the existing KG D6 Control & Riser Platform off the Kakinada coast. It comprises a subsea production system tied back to CRP via a subsea pipeline.

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