General Awareness

BUSINESS AND ECONOMY - August 2020

Aug 2020

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.

Dec 30, 2020

Future Group Firms Receive Large Orders from Reliance

According to Future Group founder Kishore Biyani, the group's fast-moving consumer goods firm, Future Consumer, and apparel manufacturing company Future Enterprises have received large orders from Reliance Retail.
Reliance Retail, a unit of Reliance Industries, agreed to buy the retail assets of the Future Group on a slump sale basis for about Rs. 25,000 crore, it was announced in August. The deal is yet to be closed.
The Competition Commission of India has already approved the deal, which also requires clearance from the SEBI and the NCLT, in addition to NOCs from creditors and minority shareholders. Meanwhile, Amazon, which owns a 49% stake in Future Coupons, a Future Group holding company, has won a stay on the deal from the Singapore International Arbitration Centre last month, and has asked Indian regulators to consider the interim order before clearing the transaction.

Tata Sons to Buy Stake in AirAsia India

Tata Sons Ltd. has agreed to buy an additional 32.67% stake in AirAsia India Ltd. from its joint venture partner for $37.66 million, increasing its stake in the budget airline to 83.67%.
Tata Sons, which owns a 51% stake in the Indian joint venture, also has the option to buy out AirAsia Bhd's remaining 16.33% stake after the closure of the deal.
AirAsia Bhd had in June approached the Tata group to sell its stake, as mandated by the terms of the joint venture under which Tata Sons has the first right to buy out the shares.
This (Tata Sons) transaction will reduce cash burn of the company in the short term and allow AirAsia to concentrate on the recovery of its key ASEAN markets in Malaysia, Thailand, Indonesia and the Philippines in the long run.

Rule of 1% GST Liability Payable in Cash May Impact 45,000 Units

The mandatory requirement of 1% cash payment of GST liability effective January 1 would be applicable to about 45,000 taxpayers. This comes to only 0.37% of the total businesses registered in the Goods and Services Tax system.
To curb tax evasion by way of fake invoicing, the Central Board of Indirect Taxes and Customs (CBIC) had recently made it mandatory for businesses with monthly turnover of more than Rs. 50 lakh to pay at least 1% of their GST liability in cash. The new rule restricts use of input tax credit (ITC) for discharging GST liability to 99% effective January 1, 2021.
However, this restriction will not apply in cases where the managing director or any partner has paid more than Rs. 1 lakh as income tax or the registered person has received a refund amount of more than Rs. 1 lakh in the preceding financial year on account of unutilised input tax credit.
Data analysis showed that of the total GST taxpayer base of 1.2 crore, only about 4 lakh have monthly supply value greater than Rs. 50 lakh. Of these, only about 1.5 lakh pay less than 1% of their GST liability in cash. When exclusions in the rule are applied, around 1.05 lakh taxpayers get further excluded from these 1.5 lakh taxpayers. Thus, the rule would apply only to 40,000 to 45,000 taxpayers.

Dec 29, 2020

Axis Bank Prunes Overseas Business

Axis Bank is pruning its overseas operation as part of a strategy of focusing on Indian market.
It closed branches in Shanghai and Colombo last month while it is in the process of winding up Hong Kong branch.
It is also looking to surrender its UK banking subsidiary license and close operations by April 2021.

LIC Sells 2% Stake in ICICI Bank

Country's largest insurer Life Insurance Corporation (LIC) has sold 2 per cent stake in private sector lender ICICI Bank through open market transactions.
The insurer sold 13.8 crore shares, representing 2.002 per cent stake of ICICI Bank, over a period of November 27 to December 24, 2020.
Following the stake sale, LIC's holding in the bank has reduced to 6.74 per cent from 8.74 per cent earlier.

Electric Car Major Tesla to Enter India in 2021

Union Minister Nitin Gadkari said that American electric car major Tesla is set to start its operations in India next year (2021) and would also look at setting up of a manufacturing unit based on demand.
The Road, Transport and Highways Minister has been pushing for green fuel and electric vehicles for cutting India's huge Rs. 8 lakh crore crude imports.
Tesla Inc. co-founder and chief executive Elon Musk had in October said the company will enter the Indian market in 2021.

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