Business News

Subscribe to Business News feed Business News
The Economic Times: Breaking news, views, reviews, cricket from across India
Updated: 2 hours 32 min ago

Bandhan widens acquisition hunt to foray into life insurance business

December 15, 2020 - 11:03pm
KOLKATA: Bandhan Financial Holdings, the promoter of Bandhan Bank, has widened its search for acquiring a controlling stake in a life insurance company even as it has bid for the 51 per cent Reliance Capital's equity shares in Reliance Nippon Life Insurance.The holding company is in talks with two more insurance firms, showing an urgency for its proposed foray into insurance. It has signed non-disclosure agreements with these firms, people familiar with the matter told ET.The holding company would use a part of the Rs 10,600 crore it received by selling 21 per cent stake in the bank in August. Among India's two dozen life insurance firm, DHFL Pramerica, Future Generali India Life Insurance and Reliance Nippon's promoters' stake sale plans are already in the public domain.The bank's managing director Chandra Shekhar Ghosh did not comment on the subject. People tracking the sector said it would be common sense for Bandhan to explore the acquisition route rather than setting up an insurance company on its own. Banking regulation will not allow Bandhan Bank to get into insurance or mutual fund businesses and therefore the group has decided to use its holding structure. According to licensing agreements with Reserve Bank of India, Bandhan Bank can only distribute third party products.Last month, RBI's internal working group on private bank ownership proposed to allow banks, which are currently under the non-operative financial holding company (NOFHC) structure, exit from such an arrangement if they do not have other group entities in their fold. Bandhan Financial Holdings has no other entity under its fold other than Bandhan Bank at this juncture.Ghosh had told ET that the group wants to continue with the holding company structure as it would be keen to foray into insurance and would leverage the bank's elaborate branch network, especially in the rural and semi-urban areas for it.At present, the bank distributes life insurance products of Bajaj Allianz Life and HDFC Life, health insurance of HDFC Ergo, general insurance of Bajaj Allianz General Insurance Co and New India Assurance Co.
Categories: Business News

Wealthy HNIs are making a move to long-term government bonds; here's why

December 15, 2020 - 11:03pm
MUMBAI: Wealthy individuals are buying long-term government bonds with 15-to-30-year maturities as they offer returns nearly double of the available short-term securities, including Treasury Bills and other money market instruments.Bonds yielding more than 6.5% are now sought after as yields from short-term notes have collapsed to 3-3.5%.“Wealthy investors are now seeking higher yields along with safety of investment," said Vikram Dalal, Synergee Capital. "Many of them are seen investing in long term government bonds with very long maturities. Even if an investor needs to exit, they can do so well before the scheduled maturity date as the secondary market is liquid for those papers. Institutions are always willing to buy them.”Yields in long-term government bonds declined up to 15 basis points since November. During the period, yields on the 10-year government benchmark bond rose five basis points. A particular series with 23 years residual maturity is now yielding 6.53 percent compared with 6.68 percent on November 3, show data compiled by JM Financial. These bonds bear a coupon as high as 9.23 percent."Long government bonds are of late back in demand courtesy the wealthy investors," said Ajay Manglunia, managing director at JM Financial. “Investors are sceptical about high yielding short term corporate papers.”Government securities with 40-year residual maturities have yielded 6.55 percent, 14 basis points lower than its early November level. All such yields are payable half yearly.Similarly, a set of bonds maturing in 2050 are now yielding 12 basis points lower at 6.58 percent during the same period.Retail investors can buy those gsecs from stock exchange platforms. NSE offers such a platform called goBID, an online platform through which retail investors can buy sovereign securities.The minimum amount available for bidding will be 100 bonds, i.e. Rs.10,000 (face value) and in multiples of Rs 10,000. 03-Nov-2015-Dec-20Change in Bps7.16% GOI 20506.76.58126.80% GOI 20606.69147.63% GOI 205946.67% GOI 20506.646.5779.23% GOI 20436.68157.06% GOI 204646.22% GOI 20356.226.23-1Data compiled by JM Fin
Categories: Business News

Trade deficit narrows to USD 9.87 bn in Nov

December 15, 2020 - 8:02pm
New Delhi: The country's exports dipped 8.74 per cent to USD 23.52 billion in November on account of contraction in shipments of key sectors like petroleum, engineering, chemicals and gems and jewellery, official data showed on Tuesday. Trade deficit during the month narrowed to USD 9.87 billion as imports too declined by 13.32 per cent to USD 33.39 billion, the data showed. During April-November 2020-21, exports dropped by 17.76 per cent to USD 173.66 billion, while imports contracted by 33.55 per cent to USD 215.69 billion. Trade deficit stood at USD 42 billion for the first eight months of the fiscal as compared to USD 113.42 billion in the same period last year. Oil imports in November dropped by 43.36 per cent to USD 6.27 billion.
Categories: Business News

BPCL evaluation committee to iron out technical aspects on bids

December 15, 2020 - 8:02pm
The evaluation committee on Bharat Petroleum Corporation will hold additional meetings to iron out the technical aspects before financial bids are sought, said people aware of the development.The committee which met on Tuesday looked into the scrutiny report by transaction advisor Deloitte on bids received from Vedanta, Apollo Global and I-Squared Capital owned Think Gas, which is a Noida-based gas distribution company.“The TA has given its report, now we will have to see if the bids are in order, if some additional information is needed from the bidders… there will be more meetings,” a senior official said.A second official said that matters of valuation will only be taken up after few months as qualified bidders will be identified first and then asked to submit financial bids. The government has not specified dates by when it will intimate qualified bidders, and has given interested parties 45 days after submitting bids to put together a consortium.The committee will put in its report to the inter-ministerial group (IMG) which consists of several ministries including public sector enterprises, petroleum and natural gas and department of investment and public asset management.Separately, BPCL’s board will meet on Thursday to consider the proposal to acquire 36.62 per cent stake in Bharat Oman Refineries (BORL) from Oman Oil Company. Currently, India’s second-largest oil marketing company holds 63.38 per cent in BORL and OQ owns 36.62 per cent.BORL, a joint venture between BPCL and OQ, owns and operates Bina Refinery, located at Bina in the Sagar district of the state of Madhya Pradesh.The government plans to sell its entire holding of 52.98 per cent in BPCL to private investors, as one of the key strategic divestments. The proceeds of this sale, which the government expected to conclude before the end of the financial year, will go towards meeting the ambitious divestment target of Rs 2.1 lakh crore set for FY 2020-21. The government has so far received Rs 6311.64 crore from disinvestment proceeds.Apart from Bina refinery, BPCL operates three others in Mumbai (Maharashtra), Kochi (Kerala) and and Numaligarh (Assam) with a combined capacity of 38.3 million tonnes per annum.The government has carved out BPCL's unit Numaligarh refinery from the stake sale and therefore will remain with the government. Therefore, the new buyer of the company will get 35.3 million tonnes of refining capacity.The company’s scrip closed 1.74 per cent higher at Rs 398.7 on the Bombay Stock Exchange on Tuesday.
Categories: Business News

Lockdown impact: Automotive industry suffered Rs 2,300 crore loss per day, says par panel

December 15, 2020 - 8:02pm
New Delhi: In the wake of the COVID-19 pandemic and subsequent lockdowns, the automotive industry suffered Rs 2,300 loss crore per day and an estimated job loss in the sector was about 3.45 lakh, according to a parliamentary panel report submitted to Rajya Sabha Chairman M Venkaiah Naidu on Tuesday. The Parliamentary Standing Committee On Commerce, chaired by Telangana Rashtra Samithi (TRS) MP Keshav Rao, has also suggested a slew of measures for attracting investment in the automotive sector in the country, including overhauling of prevalent land and labour laws. "The committee was informed by the auto industry associations that all the major original equipment manufacturers (OEM) have cut down their production by 18-20 per cent due to low demand and decline in sales of vehicles. As a result, the employment scenario in the automobile sector has been affected and an estimated job loss in the auto sector at 3.45 lakh," the panel said in its report. Hiring of manpower has been stopped in the auto industry sector. Besides that, 286 auto dealers have been closed. Further, production cuts in the automobile sector have a percolating negative impact on the component industry adversely affecting the Micro, Small and Medium Enterprises (MSME) engaged in the automobile spare parts manufacturing, the report states. "As informed by the Automobile Industry Associations, the production stoppage at the automotive OEM and component supplier due to the COVID-19 pandemic and subsequent lockdowns led to a loss of approximately Rs 2,300 crore per day to the automotive sector," according to the report. The standing committee further said the actual magnitude of the impact depends on the duration of lockdown period, the intensity and extent of spread of the COVID-19 outbreak. Considering the crisis, it is predicted that the automobile industry is likely to go through at least two consecutive years of severe contraction, leading to low levels of capacity utilisation, lack of future CAPEX investment, high risk of bankruptcy and job losses across the entire automotive value chain, the committee said.
Categories: Business News

Mrs Bectors IPO subscribed nearly 4 times on Day 1

December 15, 2020 - 8:02pm
Mumbai: The Rs 541-crore Mrs Bectors Food Specialties’ initial public offer (IPO) on Tuesday witnessed robust response and was subscribed nearly 4 times on the day one of the bidding process.The issue received bids for 4,92,53,700, which was 3.72 times the issue size of 1,32,36,211 shares.The quota for retail investors was filled in 6.83 times, while that for employees’ quota received 9.46 times bids. The portion reserved for high net worth individuals (HNIs) was subscribed 1.37 times, while that for qualified institutional buyers (QIB) was filled in only 2 per cent.The IPO is being sold in Rs 286-288 price band and comprises an offer for sale (OFS) of Rs 500 crore and a fresh issue of Rs 40.5 crore. Investors can bid for a minimum of 50 equity shares and thereafter in multiples of 50 equity shares.Ahead of the opening of the IPO, the company raised Rs 162 crore from anchor investors. The buns and biscuit maker allotted a total of 56,25,415 shares at Rs 288 per share to anchor investors including Nomura, Goldman Sachs India, HDFC Life Insurance Co, Sundaram Mutual Fund, Bajaj Allianz Life Insurance Co and Aditya Birla Sun Life Insurance Co, among others.Of the total anchor allotment, 29,75,850 shares were allotted to 7 mutual funds who had applied through a total of 23 schemes.A host of brokerages have recommended a 'subscribe' on Mrs Bectors' Rs 541 crore initial public offer (IPO) that hit the Street on Tuesday. Analysts said the company's financials have improved, net debt has declined and free cash flows have turned positive. The fact that the demand outlook for the biscuit and buns maker looks decent and the IPO is priced at a steep discount to listed peers leaves enough on the table, they said.Geojit is expecting healthy future growth prospects in packaged biscuits and QSR segment and is thus recommending a “Subscribe” rating to the issue with a long-term perspective.This brokerage noted that the revenue for the company grew 5 per cent over FY18-FY20 while PAT de-grew 8 per cent."Financial performance has started to improve in FY21, reporting PAT of Rs 39 crore on a revenue of Rs 431 crore in H1FY21, up by 284 per cent on a YoY basis. Mrs Bectors has maintained a high average gross margins of 44 per cent for Biscuits, which is higher compared to peers owing to its in-house manufacturing and 51 per cent for bakery segment, in the past three and half years," it noted.Prabhudas Lilladher said that even as the brand is well known in north India, it has just 4.5 per cent market share in key states. The brokerage said that the strong margin expansion in the first half of the ongoing financial year seems unsustainable, although a bounce back in institutional business will provide reasonable profit growth in FY22."We believe that the company is well placed to grow in the bread and buns business but needs to scale up in the biscuits business, given its smaller size than Britannia, Parle and Sunfeast," it said.
Categories: Business News

Embassy REIT to raise $500 million QIP to fund Embassy TechVillage acquisition

December 15, 2020 - 8:02pm
MUMBAI | BENGALURU: Embassy Office Parks REIT is looking to raise $500 million through a Qualified Institutional Placement (QIP), said two persons with direct knowledge of the development.This will be the first fund raising exercise being undertaken by the Blackstone Group and Embassy Group-backed REIT since its listing in April 2019.The funds raised through this institutional placement will be utilised to support the proposed $1.3 billion acquisition of the Embassy TechVillage, an integrated office park in Bengaluru.“The fundraising will be done through international and domestic institutions starting tonight itself. The indicative price for the issue will be in the range of Rs 331 to Rs 335 per REIT unit,” said one of the persons mentioned above.On Tuesday, units of Embassy Office Parks REIT closed at Rs 356, up 0.2% over previous close. The issues opens tonight and allotment for the same will be completed within this week itself.Embassy Office Parks REIT has already entered into an agreement to acquire Embassy TechVillage assets from affiliates of its sponsors--Embassy Group, Blackstone Group and other selling shareholders--for $1.3 billion or Rs 9,782 crore.Last week, 99.94% of unrelated unit holders had given approval for raising funds for the acquisition of this large-scale integrated office park situated on the Outer Ring Road in Bengaluru.The 9.2-million-sq ft office park houses over 45,000 employees of over 40 corporate occupiers. It spans over 84 acres and derives 88% of its rents from multinational occupiers. The park is 97.3% occupied, and has a 9.7 year Weighted Average Lease Expiry (WALE) with a 33.7% mark-to-market potential.The REIT proposes to fund this acquisition by issuing equity worth $812 million through a combination of this institutional placement of $500 million, and by way of a preferential issue of units to third-party selling shareholders of $312 million.The proposed placement of units is expected to increase the REIT’s public float and liquidity. The REIT also plans to refinance existing Embassy TechVillage’s debt of up to $492 million through a combination of equity and issuance of new coupon bearing debt.Embassy Office Parks REIT declined to comment for the story.The integrated office park has additional development potential of 3.1 million sq ft, of which 36% space has already been pre-leased to JP Morgan. The overall campus also has two proposed Hilton hotels with a total 518 keys. Embassy REIT is exercising its right to acquire the asset under the Right Of First Offer (ROFO) agreement. Morgan Stanley India Company, Kotak Mahindra Capital Company, BofA Securities India, J.P. Morgan India, Axis Capital, HSBC Securities and Capital Markets (India) and IIFL Securities are bankers to the QIP issue. Global institutional investors' interest in Indian commercial real estate remains robust even during the ongoing pandemic. In an indication of the appetite for commercial rental yield, India’s second Real Estate Investment Trust (REIT), K Raheja Corp and Blackstone Group-backed Mindspace Business Parks REIT received record subscription in July for the Rs 4,500-crore issue.In the last few weeks too, right in the middle of the ongoing pandemic, Blackstone Group and Brookfield Asset Management have entered into separate deals worth over $1.5 billion and $2 billion for office assets portfolios of Prestige Group and RMZ Corp.
Categories: Business News

Govt helping farmers, oppn misguiding: Modi

December 15, 2020 - 5:02pm
GUJARAT: Prime Minister Narendra Modi on Tuesday said his government is addressing the concerns of farmers over the new agri laws and accused the opposition parties of misguiding them. Modi was speaking after laying foundation stones of a desalination plant, a hybrid renewable energy park, and a fully automated milk processing and packing plant in his home state Gujarat. "Farmers gathered near Delhi are being misled as part of a conspiracy. Farmers are told that their land will be grabbed by others if new farm reforms get implemented. I want to ask you, did the dairy owner take your cattle because you are selling milk to him?" the prime minister said. "Opposition parties, when they were in power, were in favour of these farm sector reforms, but did not take any decision back then. Now when the country has decided to embrace these reforms, these people are spreading falsehood and misleading farmers. I want to reiterate that my government is ready 24 hours to resolve all your doubts," Modi said. Thousands of farmers from Punjab, Haryana and elsewhere have been protesting near various border points of Delhi including Singhu and Tikri for over a fortnight demanding the Centre repeal three new farm laws.
Categories: Business News

FMCG firm HCCB presses 7 new renewable energy projects into service

December 15, 2020 - 5:02pm
New Delhi: Hindustan Coca-Cola Beverages (HCCB) on Tuesday announced that it has pressed seven additional renewable energy projects into service to source 23.5 million units of electricity from clean energy. "Hindustan Coca-Cola Beverages (HCCB) successfully pressed 7 additional renewable energy projects into service," a company statement said. Installed in different factories of the company, these projects are designed to source 23.5 million units of power by way of Purchase Power Agreement (PPA) through various state grids, it added. Powered essentially by wind, solar and biomass, the renewable energy projects are likely to achieve a reduction of around 2 lakh tonnes of carbon emission every year. The total installed annual power generation from renewable energy sources in HCCB has now increased from around 70 million units in 2019 to 93 million units this year. Alok Sharma, Executive Director, Supply-Chain, HCCB said, in the statement, "The success of these projects is indeed a major milestone in our quest to be a sustainable driven company. The team is fully geared up to constantly keep looking at opportunities to exploit renewable energy sources. This is part of our commitment to do business in the right way and we believe use of clean and green energy is a step in the right direction to contribute towards mitigating the impact of climate change." One of the projects commissioned was a solar roof top panel at the Sanand factory in Gujarat. Executed by Tata Solar, the solar panel has an installed capacity of around 1000 KWp. The company also installed similar solar roof top panel at two other factories at Wada near Mumbai (1000KWp) in Maharashtra and Ameenpur near Hyderabad (800KWp) in Telangana, the statement said. Besides, HCCB entered into a power purchase agreement with Slylandro Power Pvt Ltd to supply 6 million units of solar power to its factory at Vijayawada, it added. The HCCB also entered into a power purchase agreement with two separate private players for sourcing 1.8 MW of wind energy for its factory at Goblej near Ahmedabad in Gujarat and 8 million units of wind energy for two of its factories at Bidadi near Bangalore in Karnataka every year, it said. An important highlight of these projects is the commissioning of two Vapour Absorption Machines (VAM) for chilling operations at the Goblej factory near Ahmedabad and the Wada factory near Mumbai, the company said. Using Lithium Bromide as a refrigerant, the machines use waste steam as a green source of energy generated by briquette boilers as an alternative to the conventional grid power which was used to run the compressor. Earlier, 13 out of the total 15 factories of HCCB achieved 100 per cent LED lighting in 2019. Besides, the company has also adopted CNG (compressed natural gas) fuel to operate its boilers. The HCCB manufactures, packages and sells- Minute Maid, Maaza, SmartWater, Kinley, Thums Up, Sprite, Coca-Cola, Limca, Fanta, Georgia and several others.
Categories: Business News

SBI Card, BPCL jointly launch credit card offering benefits to high fuel spending customers

December 15, 2020 - 5:02pm
SBI Card on Tuesday announced launch of 'BPCL SBI Card Octane' in association with Bharat Petroleum Corporation Ltd (BPCL), offering maximum savings to consumers who spend a significant amount on fuel. The credit card has been designed to offer maximum savings to the well-heeled consumer segment which spends a significant amount on fuel. The BPCL SBI Card Octane brings 25X reward points on spends for BPCL fuel and MAK Lubricants, Bharat Gas (LPG) spends (website and app only) and BPCL's 'In & Out' convenience store spends, SBI Card said in a release. The card offers 7.25 per cent value back (including 1 per cent surcharge waiver) on fuel and lubricant spends at BPCL fuel stations and 6.25 per cent value back on Bharat Gas spends, it added. It also bundles in accelerated savings on other regular spend categories, including departmental store and grocery, dining and movies. Card holders can avail the benefit from over 17,000 BPCL fuel stations across the country, and there will be no minimum transaction threshold for fuel spends, enabling customers to save with every transaction, the pure-play credit card company said. "Launch of this BPCL SBI Card Octane bolsters partnership of SBI Card with BPCL. The card will bring consumers the highest savings proposition on fuel in the industry, thus making it a preferred choice in the segment. This launch will surely aid and bolster digital payments growth in India," SBI Chairman Dinesh Khara said. Among others, the card holders can get exclusive benefits such as complimentary domestic airport lounge access, milestone benefits worth Rs 2,000 on annual spends of Rs 3 lakh, in the form of e-gift vouchers. The card also comes with a complimentary fraud liability cover of Rs 1 lakh. "This launch is in line with our continued endeavour to offer our customers the best-in-class products with superior value. In addition to the savings on fuel and lubricants across Bharat Petroleum's vast network across India, the card will also offer accelerated reward points on major spend categories," said Ashwini Kumar Tewari, MD & CEO, SBI Card. One can get 6,000 bonus points worth Rs 1,500 on payment of annual membership of Rs 1,499. However, there will be a fee reversal in case of yearly spends of Rs 2 lakh or more in the previous year, the release said. "Our partnership with SBI Card ensures that we continuously endeavour to provide value to our customers through innovative products and offerings. The BPCL SBI Card Octane is one of our contributions towards digitally empowering society," BPCL Chairman & Managing Director K Padmakar said.
Categories: Business News

US court terminates lawsuit against PM Modi

December 15, 2020 - 2:01pm
Washington: A US court has dismissed a USD 100-million lawsuit filed against Prime Minister Narendra Modi and Union Home Minister Amit Shah after the litigants - a separatist Kashmir Khalistan outfit and two associates - failed to appear before it at two scheduled hearings. The suit was filed on September 19, 2019, days before Modi's historic "Howdy, Modi!" event in Houston, Texas. It challenged the Indian Parliament's decision on Jammu and Kashmir that abrogated the special privileges of the state and carved out two union territories and sought a compensation of USD 100 million from Modi, Shah and Lt. Gen. Kanwal Jeet Singh Dhillon. Dhillon is currently serving as the Director-General Defence Intelligence Agency and Deputy Chief of Integrated Defence Staff under the Chief of Defence Staff. "Other than that attempted service," Kashmir Khalistan Referendum Front "have done nothing to prosecute this case", and have now failed to appear at two duly set Scheduling Conferences, US District Court Southern District of Texas Judge Frances H Stacy said in his order dated October 6 and recommended that the case be dismissed. The case was terminated by Judge Andrew S Hanen of the US District Court in Texas on October 22. Apart from the Kashmir Khalistan Referendum Front, the other two complainants have not been identified, other than the acronyms 'TFK' and 'SMS'. The suing party was represented by separatist lawyer Gurpatwant Singh Pannun. The Indian Parliament passed legislation last year changing the status of the state of Jammu and Kashmir, modifying provisions that have been an obstacle to economic development and promoted a sense of separatism. Prime Minister Modi, accompanied by US President Donald Trump, had addressed a crowd of over 50,000 Indian-Americans at the "Howdy, Modi!" event in Houston on September 22, 2019. As per court records, Kashmir Khalistan Referendum Front was able to serve the summons to Modi, Shah and Dhillon at the Indian Consulate in Houston on February 18, 2020. A conference was set by the court for August 2. A second conference was scheduled on October 6. Judge Stacy said that representatives of the Kashmir Khalistan Referendum Front failed to appear for the conference as such he recommended that the lawsuit be dismissed. Two weeks later, Judge Hanen terminated the case.
Categories: Business News

Neelesh Misra flags off new venture: Slow Products

December 15, 2020 - 2:01pm
NEW DELHI: Entrepreneur and storyteller Neelesh Misra has launched a new venture, Slow Products, which the company said will connect products created by farmers, honey keepers and artisans directly with consumers.Slow Products will share 10% of net profits with farmers and creators on their products, provide consumers with healthy products and will not mislead on labels, a statement issued by the company said. “This will incentivise farmers to keep the quality of products high and give them a sense of participation. In spirit, it is like ESOPS for farmers,” the statement added.The product portfolio will include honey, cookies, edible oils, grains and flour, and available on e-commerce platform Slow Bazaar, to begin with.The pandemic has triggered a wave of new products and categories with a specific focus on packaged foods and hygiene products. A report by market researcher Nielsen released two weeks back said as many as 9,700 products and variants were launched in the country in the period between April-September, as companies responded rapidly to evolving consumer preferences with a surge in in-home consumption and products catering to health and hygiene.
Categories: Business News

FM Logistic India and Welspun One Logistics Parks sign 9 lakh sq. ft lease for Bhiwandi Park

December 15, 2020 - 2:01pm
3PL service provider, FM Logistic India, has entered into a contract with Welspun One Logistics Parks to lease around 9 lakh sqft of warehousing space at Bhiwandi for expansion and future consolidation. The Rs 900 crore facility is Welspun One’s flagship project is spread over 110 acres. Welspun One Logistics parks is also in advanced discussions for another 1.5Mn sqft with other E-commerce and 3PL companies for their park in Bhiwandi.Anshul Singhal, Managing Director, Welspun One Logistics Parks said, “At our first park in Bhiwandi, we are delighted to partner with a globally reputed company like FM Logistic. We share similar values of strong emphasis on quality, solving customers’ needs, and a long term vision of continued excellence. We are certain that our association with the leading international logistics provider of their repute is a long term relationship as we buy, build, and lease properties across India that are aligned with global standards as well as our tenants’ requirements and aspirations.”FM Logistic India added 10 lakh sq. ft. of warehousing space under its operations this year despite the outbreak of COVID-19, to cater to the growing demand from e-commerce, omnichannel, FMCG, food and Pharma sector.Alexandre Amine Soufiani, MD - FM Logistic India, expressed, “We are committed to providing our customers with the best-in-class warehousing infrastructure. Through the said warehouse in Bhiwandi, we will provide our customers with faster connectivity to the major consumption markets in the West. With this new leased space, FM Logistic India will have a total of 7.0 million sq. ft. of warehousing space across India. The 3PL player provides Warehousing & Distribution services for FMCG, Food, Retail, Automotive, Consumer Durables, E-commerce, Engineering, Telecom, Pharma and other sectors.Last year, Welspun Group Promoters, through a closely held family office investment has acquired majority stake in warehousing platform - One Industrial Spaces, an integrated fund, development and asset management organization focused on the warehousing sector in India. The warehousing and logistics sector will be one of the fastest asset classes to recover from the Covid-19 pandemic due to the sharp increase in domestic demand and a possible major manufacturing shift to India as global manufacturers de-risk their supply chains, according to a report that outlined post-Covid sector outlook.
Categories: Business News

Dispute settlement gives this stock an edge over peers in pharma pack

December 15, 2020 - 2:01pm
NEW DELHI: As the pharma sector continued to see a stupendous rally this calendar, one stock moved one step ahead of its peers, for what analysts attributed to a dispute settlement.Cipla claims it has settled its dispute with Bristol Myers-owned Celgene over the drug, revlimid. Following the deal, which analysts had not accounted for, price targets for the stock rose to factor in the development.Details of the dispute settlement are still confidential. What is known is that Cipla will launch the generic drug and will have a volume-limited licence to sell it sometime after March, 2022, and can launch unlimited quantities after January, 2026.“We welcome the dispute settlement, as it provides visibility to the revenues expected in FY23 and FY24. While a rising number of settlements crowd this lucrative market, we do not foresee any impact to our base case at this stage,” said Kunal Randeria, analyst at Edelweiss Securities.He sees Rs 35 per share gain from this settlement and hence raised the price target to Rs 945, suggesting a 20 per cent upside from current levels. Cipla shares have already surged over 120 per cent from March lows.Revlimid is a lucrative drug and Bristol Myers, which invented it, generates $7.8 billion annually from it. Cipla has become the fourth player to settle the dispute after Natco Pharma, Alvogen and Dr Reddy’s Labs. Six more drug firms are still in dispute, awaiting settlement.“The key point is there are volume market share constraints in all settlements, which would help limit the impact of growing competition. However, price erosion could be higher than prior estimates,” said Sriraam Rathi, analyst at ICICI Securities.At this stage, there is no clarity on the eventual number of competitors. If it gets bigger, then that could be a risk. Besides, lower-than-expected growth in India, slower ramp-up in Albuterol, delay in resolution of the warning letter over Goa facility, higher price erosion in the US market are other key risks for Cipla.Kunal Dhamesha of Emkay Global raised his price target for the stock to Rs 1,000 and sees potential gain of Rs 45 per share from the settlement. His assessment is based on the assumption that Cipla’s settlement terms are in line with those of Alvogen.“Cipla is in a sweet spot with key businesses witnessing strong growth momentum. While Covid drug sales could normalise in India, recovery in ex-Covid prescription business, structural cost savings and rampup in gAlbuterol share in the US are likely to drive earnings growth of about 28 per cent CAGR over FY20-23,” said Bansi Desai of HDFC Securities. However, the deal may prove negative to other pharma firms, which have the same product. Hence, brokerages have adjusted price targets for Cipla’s competitors.ICICI Securities downgraded Natco Pharma to ‘hold’ from ‘add’ earlier and reduced price target to Rs 974 from Rs 998. Similarly, it has revised the target for Dr Reddy’s Labs to Rs 5,412 from Rs 5,485 earlier, though it maintained an ‘add’ rating on that stock.
Categories: Business News

Eateries to now count calories in your order

December 15, 2020 - 11:01am
New Delhi: Food service establishments with central license or outlets at 10 or more locations will have to mention the calorific value (in kcal per serving and serving size) against the food items displayed on the menu cards or boards or booklets, according to the government of India's newly notified labelling and display regulations."Additionally, reference information on calorie requirements shall also be displayed clearly and prominently as “An average active adult requires 2,000 kcal energy per day, however, calorie needs may vary”," the notification said.The Food Safety and Standards Authority of India (FSSAI) was in the process of overhauling the labelling regulations for packaged food products, which have now been notified.The notification further states that, "E-commerce Food Business Operators shall get the above mentioned information from respective Food Business Operators and provide on their website wherever applicable."The regulation has, however, done with the proposed colour-coded labelling which was intended to enable consumers to identify products that are high in fat, salt and sugar (HFSS) products, according to the newly notified labelling and display regulations. The proposal had raised concerns that if implemented, it would require majority of products to display red-colour coding on their labels.Through these regulations the food regulator has for the first time defined children for the packaged food industry. "Children or child” means a person under the age of 18 years as defined in Juvenile Justice Act, 2015. Explanation- The applicability of the age limit for specific category of food may be indicated in the relevant regulation, under the broad category of children," the newly notified Food Safety and Standards (Labelling and Display) Regulations 2020 said.
Categories: Business News

India Inc seeks to use CSR funds for staff vaccination

December 15, 2020 - 11:01am
MUMBAI: Indian companies want the government to approve their corporate social responsibility (CSR) funds deployed to vaccinate employees and to let them choose the vaccine after regulatory approvals are cleared saying this would be an ideal scenario for a public private partnership for the expansion of the Covid-19 vaccination drive.The recommendation came from the industry association FICCI and consultancy firm EY, who have estimated that 30 crore (22% of population) prioritised individuals will be inoculated by August 2021 and another 50 crore by the end of 2022.A study titled ‘Protecting India: Public Private Partnership for vaccinating against COVID-19’, released on Monday has also recommended that those people who have the ability and are willing to pay for the vaccine should be permitted to do so, irrespective of government definition of priority population.“While India has been a powerhouse for vaccine production and distribution, vaccinating over a billion people is a first, and appears to be a daunting task which requires current capacities to be scaled up extremely fast,” said Sangeeta Reddy, Chairman FICCI. Ms Reddy is also the joint MD of Apollo Hospitals.The government has encouraged private sector to help the vaccine roll out and the study found 81% of survey respondents from private healthcare industry were willing to inoculate front line workers in local areas and 75% were willing to inoculate their local communities."The challenge of producing, distributing and administering the vaccine to the population in the shortest possible time is formidable, more so for a country like India given our population, geographical spread and skewed health infrastructure across urban and rural areas and between the states," said Kaivaan Movadawala, partner, healthcare, EY.As long as the supply of vaccine is controlled and also specifically earmarked by the government for such private sector use, any kind of hoarding should be prevented, the EY-FICCI report said.India currently has three vaccine candidates in advance stage of development, with two more reaching the phase stage 3 by March. The task of vaccinating the initial 20% of the population alone will require 1.3 lakh-1.4 lakh vaccination centres, nearly one lakh healthcare professionals to carry the vaccination drive and two lakh support staff/ volunteers to support the vaccination programme.
Categories: Business News

Oaktree, Piramal trump Adani with new DHFL bids

December 15, 2020 - 8:00am
Mumbai: It’s a toss-up between Oaktree Capital and Piramal Enterprises after they trumped Adani Properties in the fourth round of bids submitted on Monday for the troubled mortgage lender Dewan Housing Finance Corporation (DHFL).Multiple people involved in the discussions said that Oaktree’s ₹36,646-crore offer has the quickest repayment timelines and a higher overall recovery but the equity infusion is only about ₹1,500 crore.Piramal Group has offered to make the highest cash payment upfront of ₹12,700 crore to DHFL creditors and a higher equity contribution of ₹2,500 crore. The group has also reiterated its offer to merge its flagship finance firm Piramal Capital and Housing Finance with DHFL, thereby swelling the combined entity’s net worth to more than ₹18,000 crore and cushioning its ability to issue debt. Piramal’s bid comprises deferred payment of ₹19,550 crore payable but it is payable over a longer tenure of 10 years in the form of bonds. Its earlier bid was only for the retail book. The NYSE-listed asset management firm Oaktree, in comparison, has offered a higher deferred payment of ₹21,000 crore worth of bonds over 7 years and an upfront payout of ₹11,646 crore.Adani, which had emerged as the highest bidder after a late, unsolicited bid after round-3, has offered ₹10,750 crore upfront and ₹19,110 crore as deferred payment over a seven-year horizon. SC Lowy, the fourth contender, also submitted a bid but only for the wholesale book. Adani’s conservative revision has raised eyebrows considering its late entry in the third round had created furore among other suitors. 79731874Adani, Piramal Bid for Multiple OptionsOaktree declined to comment. DHFL, Adani and Piramal didn't reply to ET's query.People close to the situation said Oaktree’s offer also includes ₹1,000 crore of gains from the sale of the DHFL stake in insurance business. Since Oaktree cannot own the stake due to foreign investment restrictions, it has proposed that lenders sell the stake and keep the gains but within a stipulated deadline of March 31, 2021. Oaktree has also proposed some options in case this deadline is not met.Piramal and Adani have bid around ₹300 crore and ₹250 crore, respectively, for the insurance stake. Each bidder did a detailed presentation after the bids were opened. Both Adani and Piramal bid for multiple options, along with their offer for the whole company. While Adani also bid for the wholesale and slum rehabilitation book, Piramal made a separate bid for just the retail book.Lenders are, however, likely to prefer bids for the whole company in order to maximise value rather than part sales.The home financier had borrowed about ₹88,000 crore from lenders, depositors and bondholders. With the current highest offer at ₹36,646 crore, the lenders would have to take a large haircut of ₹50,385 crore, or almost 58%.The lenders are likely to meet in the next few days to vote for the highest bid. Predicting the winner is extremely difficult considering the different parameters involved such as net present value, cash component, bonds and gross interest revenue during the period of corporate insolvency resolution process, sources said.SBI Caps, the adviser to the lenders, is in the process of submitting a report on bids based on net present value, a key gauge to assess bids.
Categories: Business News

International flights on mind, aviation ministry to meet airlines today

December 15, 2020 - 8:00am
New Delhi: As the UK, the US and Canada start their Covid-19 vaccination programmes, India’s aviation ministry has called a meeting with airlines on Tuesday to discuss resuming international flights.“The issue of resumption of international flights and expansion of existing air bubble flights will be discussed with all airlines,” said a person aware of the matter who did not want to be identified.This is the first time that the aviation ministry has started discussions on restarting international flights and it takes place over six months since it allowed domestic flight operations in May.Regular domestic flight operations restarted in a staggered manner with the government first allowing airlines to operate 33% of their pre-Covid-19 capacity and then increasing it in phases to 80% currently.However, a similar model won’t be followed for international flights because that would depend on countries allowing flights from India, people familiar with the matter said.“There are several countries that would like resumption of regular flight connectivity with India and some may not. So, resumption of international flights would depend on that,” one person said.India banned regular international and domestic flights in March as part of its measures to control the spread of the coronavirus. 79731696Flight FaresLimited international flights by Air India were allowed under the Vande Bharat Scheme in early May and they were later expanded to allow flights by foreign carriers under the bubble arrangement.India has bubble flight agreements with 23 countries including the US and the UK. While the government has set lower and upper limits for fares in the domestic sector, it’s unlikely that it can regulate international flight fares.Some airlines told ET they are not very hopeful of an early resumption of flights. “It will depend a lot on the agreement from the other government. At this stage there is hope with the vaccine, but no government has started allowing free movement internationally,” said a senior airline executive who did not want to be identified.Another executive said there are countries that would be interested in allowing flights from India.“Some countries need passengers from India to run their airlines. Such countries or regions may allow regular international flights from India but not others because cases are rising in our country,” said the other executive on condition of anonymity.
Categories: Business News

Should you look at Mrs Bectors IPO?

December 15, 2020 - 8:00am
ET Intelligence Group: Mrs Bectors Food Specialties (MBFS), a biscuit and bakery products manufacturer, is hitting the Street with an IPO comprising of a fresh issue of Rs 40.5 crore to be used for financing the expansion of its Rajpura project and an offer for sale of Rs 500 crore providing a partial exit to the strategic investors.A nationwide distribution network, in-house manufacturing, a strong presence in the export market, double-digit margin profile and lower debt-equity ratio are some of the key positives for the company. However, given its smaller size of operations amid the intense competition from established large players and the short-term uncertainty over the demand scenario due to the pandemic, the IPO looks more suitable for long-term investors with a high-risk appetite.Business and financialsCremica and English Oven are among the leading brands of the company in the north Indian market.The first half of the current fiscal year has been exceptionally good for biscuit companies on account of high household consumption and hardly any marketing and travel expenses during the lockdown to curtail the pandemic.This enabled Mrs Bectors to reduce the net debt to Rs 107 crore at the end of September 2020 from around Rs 133 crore in FY18 while the working capital days reduced to 25 from 33 during the period. At Rs 38.8 crore, net profit for the first half of FY21 exceeded the previous year’s profit of Rs 30.4 crore.79731670ValuationBased on the post-IPO equity and FY21 expected net profit, the price-earnings (P/E) multiple works out to be 27.7. This is much lower than its FY20 trailing P/E of 54 due to the exceptionally high profit in the first half of the current fiscal, which may not be reflective of the company’s performance over the medium term. Besides, high competition from larger players such as Britannia, ITC and Parle may pose a challenge to the company as its business scales up.
Categories: Business News

Sebi likely to relax norms for investing in insolvent firms

December 15, 2020 - 8:00am
Mumbai: The capital markets regulator is likely to ease rules on investing in insolvent companies. The Securities and Exchange Board of India (Sebi) is likely to relax the one-year lock-in requirement for incoming investors and revise rules on minimum public holding for companies emerging out of the insolvency process. These proposals, among some others, are expected to be discussed in the the Sebi board meeting scheduled on December 16.Typically, preferential shares are issued to incoming investor under the insolvency resolution plan. Such shares are currently required to be under lock-in.The regulator has been receiving feedbacks that this rule makes such investments illiquid as investors struggle to offload such shares within one year to comply with minimum public holding norms.Sebi could also ask companies undergoing insolvency resolution under the Insolvency and Bankruptcy Code(IBC) to improve disclosures. These firms could be asked to disclose details of funds infused, creditors paid-off, additional liability on the incoming investors due to the transaction, source of funding and pre- and post-net worth, resolution plan and shareholding of company among others.“Proposal of Sebi doing away with the lock-in period of one year for the resolution applicant, to the extent of complying with the MPS (minimum public shareholding) norm is a welcome measure,” said Sumit Agrawal, founder, Regstreet Law Advisors & former Sebi officer.“In the insolvency process, resolution plan is not publicly available even though the order approving the plan is available publicly. Therefore, mandating disclosures regarding the details of funds infused, amounts paid to creditors, impact on the investors such as revised Price to Earnings ratio, Return on Net Worth, and also the resolution plan without the confidential information and commercial secrets is a good measure. However, it will bring different challenges in the IBC process,” Agrawal said.In August, the regulator had considered three options to increase public holding after the resolution process. Sebi had proposed that companies may be mandated to achieve 10 per cent public shareholding within six months and 25 per cent within three years from the date of breach of the norm. The other two options were that companies may be required to have at least 5 per cent or 10 per cent public holding at the time of re-listing.“Sebi has received public suggestions giving both pros and cons on all the three options. The Sebi board will take a call,” said a person with direct knowledge of the matter.At present, all listed companies are required to maintain a minimum public shareholding of at least 25 per cent. But, companies undergoing insolvency resolution have been given certain relaxations. If the public holding for such companies falls below 10 per cent, they need to bring it to 10 per cent and 25 per cent within a period of 18 months and three years, respectively.In case, the public holding falls below 25 per cent but it is above 10 per cent, then it has to bring it to 25 per cent within three years from the date of such fall.
Categories: Business News

Pages

  Udhyog Mitra, Bihar   Trade Mark Registration   Bihar : Facts & Views   Trade Fair  


  Invest Bihar