QBiz: MRPs to Update Post GST Rate Cut; 8.5% Growth Rate for India
Find top business headlines from around the country in QBiz.
1. GST Rate Cut: FMCG Firms Asked to Update MRPs Immediately
Central Board of Excise and Customs (CBEC) chairperson Vanaja Sarna has written to fast-moving consumer goods (FMCG) companies asking them to immediately revise the maximum retail price (MRP) on all products in line with the GST rate cut announced by the GST Council on 10 November.
The GST Council, in its Guwahati meeting on 10 November, announced GST rate cut for 178 items, leaving only 57 products in the top tax slab of 28 percent. The GST rate cut was to implemented from 15 November.
In her letter to all the major FMCG companies, Sarna pointed out the need to immediately revise the MRP on all the products for which the tax reductions have been announced by the GST Council, according a statement by the finance ministry.
2. India Can Return to 8.5% Growth Rate: Arvind Subramanian
India has the ability to realize its economic growth potential of 8.5 percent per year, chief economic adviser Arvind Subramanian said in an interview, laying down two caveats for it to do so.
This is presaged on India overcoming challenges posed by weak demand and the twin balance-sheet problem of highly leveraged corporate entities and bad-loan-ridden banks, Subramanian said.
“And here the recapitalisation of the public sector banks that the government has recently announced is a very critical step forward,” he said, a day after Moody’s Investors Service on Friday upgraded India’s sovereign rating for the first time in 14 years.
3. Boeing to Hire 800 Direct Employees in India Over Next Two Years
American plane maker Boeing Co. is looking at hiring around 800 direct employees in India over the next two years, with a view to tap further into the country’s booming aerospace industry.
Boeing plans to take new people on board for job functions ranging from core engineering to frontline factory workers, and also support functions such as human resources, top company executives said.
The company currently has 1,200 direct employees and 7,000 of those who work on its projects at its partner firms in India. While Boeing’s India operations will likely have 1,500 direct employees by the end of this year, the company also expects its partner firms to increase the number of people working on its projects.
4. Riding With Bajaj, Triumph Hopes to Win Over India
British premium motorcycle maker Triumph expects the partnership with Bajaj Auto to more than double its global business and make India its largest market. The maker of Tiger off-road bikes, growing at a compounded annual growth rate of over 20 percent with sales of over 64,000 units at the end of 2016, expects mid-sized motorcycles planned for India and other emerging markets to bring in incremental sales of 1,00,000 bikes.
The finer elements of the formal agreement with Bajaj Auto is being discussed and it is likely to be signed soon, Triumph Motorcycles’ chief commercial officer Paul Stroud told ET. India currently accounts for merely 2% of Triumph’s global volume of 64,300 units. But Stroud believes India may well turn out to be the largest market for the brand once the tie-up is institutionalised.
5. ‘India Doing Better Than Others in Hiring Woman Techies’
India Inc must involve male managers in efforts towards better gender diversity at the workplace, and conversations around unconscious bias can help move the needle, said the chief executive of Anita-B.org, a not-for-profit that advocates for woman technologists.
The technology sector is the second-largest employer of women in India, behind the pharmaceutical and care sector, according to a study earlier this year by Nasscom in partnership with The Open University in the UK. India’s IT-BPM (business process management) industry employs nearly 3.9 million people, of which over 1.3 million are women.
6. SoftBank Set to Take Driver's Seat in Ola
Japanese investment giant SoftBank is close to acquiring an additional 10-12 percent stake in ANI Technologies, the parent company of Ola, to increase its holding in the ride-hailing firm to around 50 percent ahead of its planned investment in global rival Uber.
SoftBank will pay between $400 million and $500 million to Tiger Global, the second-largest backer of Ola, to give the US firm a partial exit, people familiar with the development told Business Standard on condition of anonymity.
7. Vedanta Set to Overtake Aditya Birla Group as Largest Aluminium Maker
Vedanta, which produced 0.96 million tonne of aluminium across its two facilities in Odisha and Chhattisgarh, is on course to clock an annual output of 1.6 million tonne this year.
As against this, the combined capacity of Aditya Aluminium and Hindalco, subsidiaries of Birla group, across four locations in Odisha, Madhya Pradesh and Uttar Pradesh is 1.32 million tonne. The group, as a whole produced 1.26 million tonne aluminium in FY17.
8. ‘Non-Existent’ Tata, RIL And SBI Firms Among Entities Struck Off By Government
Eight firms linked to India’s largest conglomerate, the richest man and the biggest bank were among more than two lakh companies struck off by the government after its crackdown on suspected shell entities.
There’s a catch though: These companies no longer exist as they were merged with other group subsidiaries years ago. Among the deregistered entities are five from the Tata Group, one from Mukesh Ambani’s Reliance Industries Ltd. and two subsidiaries of the State Bank of India.
9. The Indian Truckmaker That Got Hotter Than Tesla Selling Bikes
It’s no secret that Elon Musk’s Tesla Inc. is a Wall Street darling. Then there’s India’s Eicher Motors Ltd.
Best known for its Royal Enfield brand of motorcycles common across India and occasionally seen in Miami or Los Angeles, Eicher over the past seven years – since the time that Tesla has gone public – has produced superior returns for investors.
The stock has appreciated 3,270 percent, much higher than Tesla’s 1,533 percent gains since the electric carmaker’s listing in mid-2010.
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