1. Toyota, Suzuki in Tie-Up to Sell Each Other’s Cars in India
Toyota Motor Corp. and Suzuki Motor Corp. on Thursday, 29 March, agreed to sell each other’s cars in India, where Suzuki outsells Toyota models 11-to-1, deepening the partnership between the two companies.
While Suzuki will supply its best-selling models such as compact car Baleno and small sports utility vehicle Vitara Brezza to Toyota, small car specialist Suzuki will source Toyota’s popular sedan Corolla and sell it through the dealership network of Maruti Suzuki India Ltd – its local unit.
“Details on each model, such as the schedule of the start of supply, number of supplied units, vehicle specifications, and supply pricing, will be considered at a later stage,” the companies said in a joint statement, adding that the announcement is a part of “a basic agreement toward the mutual supply of hybrid and other vehicles between the two companies for the Indian market”.
(Source: Livemint)
2. Illegal LoUs: PNB May Seek Review of Liability Later
Punjab National Bank (PNB) may have agreed to settle all the claims by other banks, for now, to avoid any interbank spat, but it could seek a review of its liabilities by the regulator if investigations by official agencies conclude that the accused PNB employees were part of a broader interbank nexus on fraudulent credit guarantees issued to the firms of jewellers Nirav Modi and Mehul Choksi, sources told FE.
After a board meeting on Wednesday, PNB said it will settle dues of Rs 6,500 crore with seven banks on such illegally-issued letters of undertakings (LoUs) and foreign letters of credit (FLCs) that are maturing by the end of this month, and that it will “honour all subsequent maturing LoUs and FLCs as and when they are due”.
The total value of the fraudulent LoUs and FLCs have been estimated at Rs 12,656 crore.
(Source: Financial Express)
3. Tata Power to Sell Defence Business to Tata Advanced Systems for Rs 2,230 Cr
Tata Power on said its board has given nod for sale of its defence business to Tata Advance Systems for Rs 2,230 crore.
The move is part of the company’s plan to monetise its non-core assets and improve the balance sheet.
“Tata Power, India’s largest integrated power company, today announced that its board has approved the sale of its defence business to Tata Advance Systems Ltd, a wholly owned subsidiary of Tata Sons at an enterprise value of Rs 2,230 crore,” the company said in a statement.
The deal will be subject to government and other approvals, including the shareholders’ nod.
(Source: Livemint)
4. BMW India to Localise Iconic Mini
India will start selling ‘Made-in-India’ MINI Countryman from June and the production of the same will begin soon. After localising 8 of its products (around 50 percent localisation), the German luxury car major has decided to localise its iconic brand — MINI — with the beginning Countryman.
The company, effective 1 April, it will start selling Euro VI-compliant petrol variants of existing models and will launch diesel variants once the fuel (Euro VI diesel) is made available by the oil marketing companies across the country, said Vikram Pawah, president, BMW Group India.
Speaking at the plant site here after launching ‘Skill Next’, a technical skilling initiative to mark its 11th year of its operations in Inida, Pawah said given the sharp duty hike on imports as well GST blues, the company felt it is wise to make in India to be not only price competitive but also to grow fast.
(Source: Financial Express)
5. Google Invests Undisclosed Amount in Fashion Start-Up Fynd
Asserting its trust in India’s start-up ecosystem, global online search giant Google has invested an undisclosed amount in omnichannel lifestyle platform Fynd.
This is Google’s second direct investment in India. It had earlier invested Rs 650 million in Bengaluru-based hyper-local concierge and delivery player Dunzo in December 2017.
“Fynd’s unique store-driven commerce approach, without inventory or warehouses, gives it a unique position in the marketplace,” said Seema Rao, Head of Corporate Development-India, Google.
(Source: Business Standard)
6. Cyber Security: Telecom Sector Set to Have Own Emergency Response Team
Considering the sensitive and strategic nature of communication networks, the government is working on creating a computer emergency response team (CERT) for the telecom sector.
“Department of Telecom (DoT) is working on creating a CERT. As telecom is one of the core sectors, which is strategic and acts as the backbone for communications, it was felt that there should be an emergency response team to handle cyber threats and breaches,” a DoT official said, adding that it will be on the lines of the finance ministry creating a CERT for that sector.
Elaborating on the need for a CERT in telecom, a senior government official said keeping in view the dynamic nature of technology, organisations and individuals have a limited response window to detect and respond to cyber attacks.
Besides, there is a need for near real-time situational awareness to handle attacks.
(Source: Financial Express)
7. STT Collections Surge in Buoyant Market; Govt Rakes in Rs 111 billion in 2017-18
Buoyancy in the stock markets has helped the government collect a record amount from the securities transaction tax (STT) in 2017-18.
According to an official with the income tax (I-T) department, the STT collection for the fiscal year stood at Rs 111.23 billion, an increase of 24 per cent over 2016-17. The amount is also 43 per cent higher than the Revised Estimates of Rs 77.7 billion.
The increase in STT collection is because of a high trading turnover, particularly in the derivatives segment.
(Source: Business Standard)
8. Volkswagen Eyes 3% Market Share, to Launch Six New Models
German car major Volkswagen is eyeing a market share of 3 percent from the current 1.5 percent in the next five years. Betting big on its growth in the Indian market, the company is planning to introduce six new cars.
Besides, Volkswagen, along with its group company Skoda, is planning expansion of its greenfield manufacturing facility at Chakan in Maharashtra.
It has invested 1 billion euros in the manufacturing unit. “Our vision is to have a 3 percent market share in the next five years. We’re hoping to double our market share with about 1,20,000-1,30,000 cars sales volume over the next five years. For CY 2017, our retail sales figures were about 47,500 units. In CY 2018, we want the figures to be stable,’’ Steffen Knapp, director, Volkswagen Passenger Cars, said.
(Source: Financial Express)
9. Forget Job Growth, Employment in India Fell Between 2014 and 2016
Employment in the total Indian economy shrank by 0.1 percent in financial year 2015-16 and by 0.2 percent in 2014-15. Far from more jobs being created, employment has actually contracted.
That is the finding from the latest KLEMS India database, a research project supported by the Reserve Bank of India (RBI) to analyse the productivity of the Indian economy. It is part of the World KLEMS initiative, supported by several central banks, universities and research institutions to analyse growth and productivity patterns across the world. The data is available on RBI’s website.
The data, recently updated till 2015-16, shows that employment fell in several sectors. ‘Agriculture, forestry, fishing’, mining, manufacture of food products, textiles, leather products, paper, transport equipment and trade are some sectors in which employment contracted in both 2014-15 and 2015-16.
(Source: Livemint)
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