1. Flipkart’s Myntra Pips Rivals, Buys Jabong for $70 Million
Flipkart Group’s company, Myntra, acquired Jabong from Global Fashion Group (GFG) for $70 million in cash.
The move has created one of the largest online fashion destinations in the country as well as the largest e-commerce marketplace in India. The acquisition has made Flipkart stronger to compete with global rival Amazon, which continues to make a larger market for itself in India as well.
In India, Myntra and parent Flipkart together held 60 percent share of the online fashion and lifestyle market. With Jabong on the wagon, the three will together command 75 percent.
Source: Hindu Business Line
2. Auditor Finds Flaws in Government’s Coal Auction Process
The Comptroller and Auditor General (CAG), has found flaws in the procedure of allocation of coal mines to companies by the Narendra Modi government.
The audit body pointed out issues in the first round of coal block and mining e-auctions conducted by the government.
There were concerns in the criteria for bidder selection in e-auction of coal mines, according to the audit body’s report.
Pointing out that the bids were not competitive, the auditor observed that a number of Qualified Bidders (QBs) in the e-auction stage were either from the same company, or from the parent, subsidiary companies.
Source: BloombergQuint
3. Govt Must Protect Central Banks’ Independence, Says Rajan
As his term ends, outgoing RBI governor has in the recent period been more vocal in his attack on his critics, who repeatedly antagonised the central bank for not slashing rates, which they argue would trigger rapid growth.
To illustrate his point, an exhibit presented by Rajan during his address at the 10th Statistics Day Conference depicted India’s real interest rate (interest rate minus inflation) as lower than one percent. In China, one of the fastest growing major economies, the rate of interest is close to 2.5 percent.
He therefore argued that India’s real interest rate was actually in the middle-of-rates prevailing in the world, and lower than China’s
Source: Business Standard
4. Maruti Suzuki Q1 Profit Zooms 23%, Beats Estimates
On Tuesday, India’s largest passenger car maker Maruti Suzuki India (MSIL) reported a standalone net profit of Rs 1,486 crore for the first quarter ended 30 June, up 23 percent, compared with Rs 1,208 crore in the corresponding period last year. The performance has beat all market estimates.
The profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation. Adverse foreign exchange movement reduced profits to some extent.MSIL Statement
Source: Hindu Business Line
5. 25 Years of Reforms: Meet Indian Banking Sector’s Poster Boys of Liberalisation
C Rangarajan, among others, must widely be credited for creating an environment conducive for the economic reforms of 1991.
In the period prior to ‘91, the state of Indian banking was different. There was no concept of profit or losses for banks as a financial marketplace didn’t exist.
RBI dictated the exchange rate, based on what the ruling class and bureaucrats discretion. The Indian elite also decided who got loans, until Rangarajan became the RBI governor.
If individuals have made fortunes by buying bank stocks in the last two decades, credit is due to the banking reforms Rangarajan led from 1992 to 1997.
Source: Economic Times
6. Headway on Key GST Issues, but Sore Points Remain
In a meeting between Union Finance Minister Arun Jaitley and his counterparts from the states on Tuesday, a broad consensus on dropping the proposed 1 percent tax on inter-state supply of goods was reached, resulting in some progress on the goods and service tax deadlock.
There was also consensus on putting an upper limit on rates outside the Constitution amendment Bill, broad principles on the tariffs and “categorical wording on fully compensating states for five years, in case of loss.”
However, the conflicts between the Centre and states continued over administrative powers on assessment and adjudication of entities.
Source: Business Standard
7. Tata Sons Agrees to Pay DOCOMO $1.17 Billion
Tata Sons Ltd agreed to pay $1.17 billion to Japan’s NTT DOCOMO Inc, saying it will submit fixed deposit receipts for the amount to the Delhi High Court’s registrar by the following Tuesday.
Japan’s DOCOMO had earlier filed a plea in the high court seeking enforcement of the London Court of International Arbitration’s order, claiming that Tata Sons had failed to get a buyer for DOCOMO’s stake in their joint venture – Tata Teleservices Ltd.
On 24 June, the arbitration court had ruled in favour of DOCOMO and directed Tata Sons to pay $1.17 billion, approximately Rs 8,000 crore, for breach of contract.
Source: BloombergQuint
8. Labour Min Awaits EPFO Panel Nod on Doubling Equity Investments
The Labour Ministry is leaning closer toward doubling incremental employee provident fund investments in equity to 10 percent, despite opposition from central trade unions.
An expert committee set up by the Finance, Audit and Investment Committee (FAIC) of retirement fund body Employees’ Provident Fund Organisation (EPFO) has voted for this increase. The government has now asked FAIC to take a decision.
Once approved, the ministry will present the decision before the next board meeting of EPFO for information, before notifying the new rate of investment.
Source: Economic Times
9. Apollo Global Invests Rs 400 Crore in Noida-Based Logix Group
Apollo Global Management LLC, the global alternative asset manager, has invested Rs 400 crore in Noida-based developer Logix Group through the structured debt route. This is the New York-based investor’s first real estate transaction in India.
The money will be put into funding the completion of the construction of four ongoing residential developments and a commercial office projects in Noida.
The investment has been made through Apollo Global’s new Asia fund that is currently raising to deploy capital in India, China and South-East Asia.
Source: Livemint
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