1. Govt Plans Big Push to Rid Banks of Rotten Assets
The government wants to put together a plan to purge the banking system of bad loans, seen as the single biggest hurdle in the way of an investment revival that's badly needed to push growth. On the table are said to be three possible strategies - asset swaps, a bank-by-bank cleanup and a ‘bad bank’.
The matter is likely to be discussed later this month, a senior government official told ET.
The extent of rotten assets held by banks has been revealed by the Reserve Bank of India's ongoing asset-quality review.
(Source: The Ecoomic Times)
2. Piramal to Buy 5 Janssen Drugs for Rs 1,164 Crore
Piramal Enterprises has agreed to acquire five injectable anesthesia and pain management products of Janssen Pharmaceutica for about $175 million or Rs 1,164 crore.
Mumbai-headquartered Piramal Enterprises will pay $155 million (Rs 1,031crore) upfront in cash and the rest on meeting certain sales-related milestones, the company said in a statement issued on Monday.
The transaction, which is expected to be closed this week, marks the Ajay Piramal-led company's sixth deal in the healthcare space in the past two years. It is seen bolstering its portfolio of critical care drugs.
(Source: The Economic Times)
3. Facebook Rolls out Business Software, Launches Pricing War
Facebook Inc launched a workplace version of its mobile app and website on Monday, marking the social networking company’s first foray into the hotly competitive and crowded enterprise software arena.
The product, called Workplace by Facebook, has been in testing for more than a year and is now available to all businesses. It is designed for workplace communication and collaboration, putting Facebook in direct competition with the fast-growing start-up Slack.
Workplace is a subscription product—a departure for advertising-driven Facebook—with businesses paying $1 to $3 per user. Slack’s least expensive business plan charges about $7 per user.
(Source: Livemint)
4. Samsung Pauses Production of Galaxy Note 7
When Samsung Electronics introduced its sleek, high-end Galaxy Note 7 smartphone in August, one of its senior executives called it “the most intelligent smartphone that we have ever created.”
Today, that model - which the South Korean electronics giant was counting on to help it close the gap with Apple, its biggest rival - looks more like an expensive problem that will not go away.
Samsung has temporarily halted production of the Galaxy Note 7, a person familiar with the decision said on Monday, amid reports that a number of the devices had caught fire. The decision comes just five weeks after Samsung said it would recall 2.5 million Galaxy Note 7 phones after reports of battery fires, suggesting that it has not been able to fix the problem.
(Source: Business Standard)
5. Indirect Tax Collection Jumps 26% in April-September, Direct Tax Collection up 9%
Indirect tax collection during the first half of the current financial year grew an impressive 26 percent year-on-year to Rs 4.08 lakh crore while direct tax collection for the same period rose 9 percent to Rs 3.27 lakh crore, the finance ministry said in two separate statements.
The government aims to mop up Rs 8.47 lakh crore in direct taxes and Rs 7.79 lakh crore from indirect taxes – including excise, customs and service tax – in 2016-17.
The rise in indirect tax was mainly on account of a jump in excise duty mop-up, while the increase direct tax collection was led by increase in personal income tax.
(Source: BloombergQuint)
6. KKR Unit Set to Buy into YuppTV
Emerald Media, a pan-Asian media investment platform set up by US private equity giant KKR, has decided to invest $50 million to buy a significant minority stake in YuppTV , a homegrown version of video streaming site Netflix targetted at non-resident Indians.
The transaction will be one of the first major investments in over-the-top (OTT) video platforms in South Asia and marks KKR's entry into India's highgrowth media and entertainment sector.
(Source: The Economic Times)
7. Grasim Shareholders Approve Increase in FII Investment Limit
Aditya Birla Group company Grasim Industries on Monday said its shareholders have approved raising foreign investment limit in the company to 30 percent.
The increase in the investment limit for Registered Foreign Portfolio Investors (RFPIs)/ Foreign Institutional Investors (FIIs) from the currently approved 24 percent to 30 percent of the company's equity share capital and sub-division of shares will be effective post approval from the Reserve Bank of India, the company said in a statement.
The enhanced limit will create headroom for RFPIs/FIIs allowing them to make further investments in the company's equity shares, a company statement said here.
(Source: BloombergQuint)
8. Number of Credit Cards in India Seen Growing to Record 30 Million by March
The number of credit cards on issue is set to exceed the record 28 million cards it hit in March 2008, bankers said. The banking system adds about 5-6 million cards every year, the lenders said.
As of 31 July, the outstanding number of credit cards was around 25.94 million, according to data from the Reserve Bank of India (RBI). The number rose 18% year-on-year.
“Adjusting for the attrition that usually happens and the current growth rate, in the last six months of this financial year, the banking system should add about 3 million new cards. It could increase, if bankers decide to step on the pedal,” said Vijay Jasuja, chief executive officer, SBI Cards and Payments Services Ltd.
(Source: Livemint)
9. For PE Investors, Craft Beer Emerging as New Area of Interest
Craft beer is emerging as a new area of interest for private equity investors. Last month, Gateway Brewing Co said it is in talks to raise $3.3 million from private equity investors to expand its presence and start bottling operations.
Earlier this year, Mint reported that Hong Kong-based private equity (PE) firm TR Capital Partners LLC is close to investing about $10 million in B9 Beverages Pvt Ltd, maker of the popular Bira 91 craft beer. Founded in 2015 by Ankur Jain, founder and chief executive officer, has angel investors such as Snapdeal founders Kunal Bahl and Rohit Bansal and Zomato founder Deepinder Goyal. Venture capital firm Sequoia Capital invested $6 million in Bira in January.
BTB Marketing Pvt Ltd which runs The Beer Cafe, is looking to raise around $40 million from PE firms to expand its presence across the country, Mint reported in February.
(Source: Livemint)
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