QBiz: Tata to Increase Stake in AirAsia, Khadi Sale Jumps 60%

Here is The Quint’s round-up of the top business headlines for today.

3 min read
(Photo: Reuters)

1. Tata Group May Increase Stake in AirAsia India

According to a report in The Economic Times, low-fare carrier AirAsia India and Tata Sons are in discussion to increase the conglomerate’s stake in the airline, a senior executive at the airline’s Malaysian parent and another person in the know said.

The Tatas now own 30% stake in AirAsia India while AirAsia Berhad owns 49%. The rest is with private investor Arun Bhatia through his investment holding company, Telestra Tradeplace.

Read the full report here.

2. India Has 4th Largest Ultra-high-net-worth Households

India is home to the fourth largest number of ultra-high-net-worth households that have more than 100 million dollars in private wealth, according to a new report topped by the US, said The Financial Express.

The Boston Consulting Group’s ‘Global Wealth 2015: Winning the Growth Game’ report said continued economic expansion of China and India was driving growth in wealth in the Asia- Pacific region.

Read the full report here.

3. After PM Narendra Modi’s Appeal Khadi Sale Jumps 60%

Sale of khadi products have increased by over 60% after Prime Minister Narendra Modi’s appeal to buy at least one khadi garment, MSME Minister Kalraj Mishra said.

An appeal was made by the Prime Minister in his radio address ‘Mann Ki Baat’ to buy at least one khadi garment. As a result of the appeal, the sale of khadi increased by over 60%.
– Kalraj Mishra

4. More RBI Rate Cuts Unlikely This Year: HSBC

The Reserve Bank of India (RBI) is not likely to go for further easing this year as weak rains may have a tangible impact on food inflation and could directly impact rural household consumption – global financial services HSBC has said in a report.

5. Maggi Ban Hits 1,500 Nestle Employees

The ban on Nestle’s Maggi brand and its recall have affected close to 1,500 direct employees of the company involved in the production of the instant noodles, according to a report in The Economic Times.

Nestle is relocating some of these employees to manufacture other items like dairy products, ketchup and infant nutrition. Most of the employees, who have been jobless since Maggi’s production was suspended on June 5, are being involved in team building and other HR activities.
– A senior executive from Nestle

Read the full report here.

6. Air Seychelles Expands Codeshare Pact with Jet Airways

Expanding its codeshare pact with the Naresh Goyal-promoted Jet Airways, Seychelles national carrier Air Seychelles on Tuesday announced inclusion of New Delhi, Bangalore, Chennai, Hyderabad and Kolkata in its existing route network.

With the addition of codeshare routes, Air Seychelles now offers air services to nine Indian cities on Jet Airways’ domestic network, including Ahmedabad, Jaipur, Kochi and Thiruvananthapuram, an Air Seychelles release said.

7. Why the Dragon and the Democrat Have to Tango

When a global icon of democracy visits China – not exactly known for its democratic credentials understandably – all heads turn.

Singapore-based Sinologist, Anurag Vishwanath writes in The Financial Express that among other things, the China trip is also about Aung San Suu Kyi making a transition from being a champion of democracy to the realpolitik world.

Read the full story here.

8. Two Years After Taper Tantrum

It is now almost two years since the infamous taper tantrum sent the rupee reeling. India at that time had the word fragility written all over it. The fiscal deficit had ballooned, the current account gap was at a record level and inflation was persistently high. These macroeconomic imbalances had been allowed to build up when Pranab Mukherjee was Finance Minister.

That bout of economic instability is now history. The consensus now is that India is in a good position to deal with a new bout of global turbulence when the US begins to increase interest rates. That is only half the story. There is a new class of risks now casting a long shadow on the Indian economy. These risks are to be found in the balance sheets of over-leveraged companies as well as the banks that have lent to them.

Read the full Mint story here.

9. Vodafone Raises Rs 7,700 Crore in its First Rupee Bond Sale

In a first ever rupee bond sale by the British telecom firm, three Vodafone Group companies have raised Rs 7,700 crore in the domestic market with maturities of five years which were mostly grabbed by international investors hungry for yields, said two people familiar with the matter, the Mint reported.

Read the full report here.

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