QBiz: Passenger Vehicle Sales Rise; ITC to Launch Branded Rice
1. Paytm Set to Launch Wealth Management Products by April
Paytm Money Ltd., a wholly owned subsidiary of e-wallet and payments bank Paytm, has received a nod from Securities and Exchanges Board of India to become a registered investment adviser, paving the way for the firm to improve its fee income.
The company said it will launch investment and wealth management products by April, it said in a statement issued on 7 March.
2. New Metric for Jobs Growth to Include Informal Economy
Expanding the scope of job creation in the country, the National Democratic Alliance (NDA) government has now decided to start counting jobs created in the non-farm informal sector.
The government has asked labour bureau under the Union labour ministry to begin counting jobs created in establishments deploying less than 10 people. Effectively, it means, establishments and shops run by a single owner or with one employee too will be counted as employment generation.
Data from this new measure of employment based on an establishment survey is expected to be released either by the end of this year or in the first half of 2019.
3. ACC, Ambuja to Supply Cement to Each Other at a Discount
ACC Ltd. and Ambuja Cements, which put their planned merger on hold, have agreed to supply cement to each other at a discount. The agreement also provides for supply of clinker and raw materials such as fuel, fly ash, slag and gypsum and spare parts.
Both the companies, controlled by LafargeHolcim, sought approval from their respective shareholders to “enter into, execute and deliver the master supply agreement”, as per the separate regulatory filings. According to the pricing formula, either party would get a 5 percent discount on the average net selling price.
4. Paytm is Umpire Partner, 34 Star India Brands to Sponsor IPL Broadcast
The Vivo Indian Premier League (IPL) has added Paytm as an on-ground sponsor as the mobile wallet brand comes on board as the Official Umpire Partner for the next five years (seasons 2018 through 2022). Paytm is also the Title Sponsor of India Cricket. CEAT Tyres will continue its association with the annual tournament as the official time-out partner for the next five years.
The Board of Control for Cricket in India (BCCI) in January had called for the applicant to three categories of commercial partners – official partner, strategic time-out partner and umpire partner.
Shukla, Chairman of the IPL, said, “Paytm are currently the Title Sponsors of India Cricket and the relationship has now been extended to the IPL. Both Paytm and BCCI share a strong bond and we will continue to provide great value to Paytm”.
(Source: Business Standard)
5. Panel Seeks More Amendments to Insolvency and Bankruptcy Code
The insolvency law committee on Monday recommended that the Insolvency and Bankruptcy Code (IBC) be amended to make eligibility requirements for bidders stricter and give lenders more flexibility in decision-making, said two people aware of the developments.
The panel, chaired by corporate affairs secretary Injeti Srinivas, recommended amendments to Section 29A of the IBC, which bars wilful defaulters, those with non-performing assets for over a year and people connected to these parties from bidding for stressed assets. The panel has suggested a change in the definition of connected party to include a person who along with a resolution applicant picks up an equity stake in the company facing insolvency.
6. Tata Sons to Sell $1.2-Bn Worth TCS Shares in Rs 2,872-Rs 2,925 Price Range
India's Tata Sons is set to sell on Tuesday a roughly 1.5 percent stake in its flagship Tata Consultancy Services for about $1.25 billion.
Tata Sons, which owned 73.5 percent of TCS as of end-December, is selling TCS shares in a price range of Rs 2,872 to Rs 2,925 each, according to a deal term sheet.
That would be a discount of 4.2 to 5.9 percent to TCS's Monday closing price of Rs 3,052.15.
(Source: Business Standard)
7. Domestic Passenger Vehicle Sales Rise 8% in February
Passenger vehicle sales in India rose by 7.77 percent in February, driven by strong offtake of utility vehicles.
According to the data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle (PV) sales rose to 2,75,329 units in February from 2,55,470 units a year ago.
Vehicle sales across categories registered a rise of 22.77 percent to 21,11,383 units, from 17,19,806 units in February 2017.
Domestic car sales were up 3.7 percent to 1,79,122 units last month as against 1,72,737 units a year ago.
Utility vehicle (UV) sales grew by 21.82 percent to 80,254 units, as against 65,877 units a year ago.
8. ITC to Enter Branded Rice Segment by End of This Year
ITC Ltd, the maker of Aashirvaad atta, Sunfeast biscuits and BNatural juices, plans to launch branded packaged rice this year, entering a segment vacated by Hindustan Unilever Ltd two years ago.
The Kolkata-based company will sell both basmati and non-basmati rice and, in future, introduce ready-to-make versions of rice-based dishes.
“(Branded) rice will be launched by end of this year”, S Sivakumar, group head (agriculture and information technology business), ITC, said in an interview.
This marks the entry of the firm into one more low-margin commodity market after atta (wheat flour), which is already crowded with more than 100 brands.
9. Goldman Sachs Names David Solomon as Next in Line to Replace CEO Blankfein
Goldman Sachs Group Inc said on Monday, 12 March, that Harvey Schwartz, the bank's president and co-chief operating officer, will retire, paving the way for David Solomon to become sole president and Chief Operating Officer.
Schwartz will retire on 20 April according to a statement from the bank.
The Wall Street Journal reported on Friday that Goldman Sachs Chief Executive Officer Lloyd Blankfein was expected to retire and the bank was not looking beyond presidents and co-chief operating officers Schwartz and David Solomon to replace him.