Top headlines: States on GST compensation, Emami questions HUL & more

From states divided on alternative GST compensation, Emami questioning changing of 'Fair and Handsome' name to startups helping tenant amid Covid-19, here are the top headlines of the day

As the negative China sentiment intensifies, JSW Group's Partth Jindal has said the company will bring down imports to zero in the next two years. Private equity firm KKR has picked up controlling stake in JB Chemicals. CARE Ratings has predicted 6.4% contraction in India GDP in FY21. Here are top headlines of the day:

KKR to acquire 54% controlling stake in JB Chemicals for Rs 3,750 crore

Global investment firm KKR & Co. Inc. will pick up a controlling stake in Mumbai-based branded formulation player JB Chemicals and Pharmaceuticals (JB Chemicals). As part of the deal, KKR will acquire stake from the founding Mody family at Rs 745 per share (or 5 per cent premium to the closing price of Rs 715 on the BSE). According to a BSE notification, KKR has entered into an agreement to acquire 41.7 million equity shares of JB Chemicals, representing 54 per cent, from the promoters of the company, said a company statement on Thursday. Read More...

These co-living startups are helping tenants sail through Covid-19

The Nexus Venture Partners-backed platform has so far waived the rents of 600 such persons who’ve lost their jobs since the Covid outbreak. The open-ended offer at its properties around the country has meant a Rs 1-crore hit for the start-up, and the figure could well rise. Bengaluru-headquartered Colive, which has an inventory of 26,000 beds in Bengaluru, Hyderabad, Chennai and Pune, is coming out with a similar plan. A tenant who’s lost his/her job in the past two months will get a rent waiver of 45 to 60 days. “We sent the invoice for July to our 7,000 residents but they can raise a concern on our app if they face difficulty in paying the rent,” said a company spokesperson. Read More...

Clermont Group likely to join Clix Capital in Lakshmi Vilas Bank deal

As negotiations progress between capital-starved Lakshmi Vilas Bank (LVB) and AION Capital-backed Clix Capital over a merger, sources in the know say Singapore-based private equity player Clermont Group has also joined the talks to pick up a sizeable stake in the bank. With an investment of $150-200 million (Rs 1,100-1,500 crore), Clermont is eyeing a 15-20 per cent stake in LVB, say sources. Read More...

Covid-19 crisis: States divided on alternative GST compensation mechanism

States might not arrive at a consensus on an alternative mechanism to compensate them for the shortfall in goods and services tax (GST) collection at the council meeting, expected to be held in a couple of weeks, as divergent views have emerged on the issue. While Punjab and Kerala will press the GST Council to borrow in order to compensate states, Bihar Deputy Chief Minister Sushil Kumar Modi called the idea “wishful thinking”, arguing that states will need to “learn to live with the revenue shortfall”. Read More...

JSW group will bring down China imports to zero in 2 years: Parth Jindal

As the clamour to boycott Chinese products grows amid a stand-off between the Indian and Chinese armies in eastern Ladakh, several companies have indicated they would cut imports from the neighbouring country and support the government’s self-reliance theme. Parth Jindal, managing director of JSW Cement, said on Thursday that the JSW group, promoted by his family, would be bringing down its imports from China to zero within two years. While Jindal was not available to share the detailed strategy to achieve this, he made the group’s plans public via Twitter. “The unprovoked attack by the Chinese on Indian soil on our brave jawans has been a huge wake-up call and a clarion call for action. We @TheJSWGroup have a net import of $400 million from China annually and we pledge to bring this down to zero in the next 24 months,” he tweeted. Read More...

Emami questions Hindustan Unilever's fairness over skin cream rebranding

Consumer goods company Emami, which is the maker of the ‘Fair & Handsome’ brand of products, on Thursday said it was shocked to know that competitor Hindustan Unilever (HUL) had rebranded its men’s skincare range as ‘Glow & Handsome’. Emami said it had trademark rights over the name and that it was consulting legal experts on the matter. “We are shocked to learn of HUL’s decision to rename its men’s range of Fair & Lovely as Glow & Handsome. We are the market leaders in the men’s fairness cream with legal ownership of the trademark,” Emami said in a statement. “We have already launched a week back our brand ‘Emami Glow & Handsome’ digitally and necessary application has already been made to the relevant authorities,” it said. Read More...

Ban on China companies unlikely to hit ongoing highway contracts

The government’s crackdown on Chinese companies may not hit ongoing highway contracts as any disruption at this juncture can potentially derail these projects. The National Highways Authority of India (NHAI) will complete these contracts but will not award fresh projects to Chinese firms. “There are 10-12 projects being executed by Chinese companies in joint ventures with Indian firms. They will be allowed to function but there will be no new contract for Chinese firms,” an official said. Read More...

Axis Bank gets approval to raise up to Rs 15,000 cr to tide over Covid-19

Axis Bank’s board on Thursday approved the plan to raise Rs 15,000 crore through a variety of instruments to shore up its capital base amid the Covid-19 disruptions. These instruments could represent either equity shares or convertible securities linked to equity shares, including through qualified institutional placement (QIP), American depository receipts (ADRs), global depository receipts (GDRs), preferential allotment or such other permissible mode or combinations as may be considered appropriate by the board, the bank said in an exchange filing. The capital adequacy ratio of Axis bank stood at 17.53 per cent as of March 31, with CET-I ratio at 13.34 per cent. Read More...

India's GDP likely to contract by 6.4% in FY21, says Care Ratings

Care Ratings on Thursday revised India's GDP growth forecast for the current financial year to (-) 6.4 per cent as economic activity continues to be under restriction due to the lockdown on account of the Covid-19 pandemic. The rating agency, in May, had projected a decline in GDP growth of 1.5-1.6 per cent in FY21. It said given that the nation is into a lockdown for July too with several restrictions on resumption of services in particular as well as movement of people, the cutoff date for normalcy will spread into the latter part of the third quarter and more likely to the fourth quarter. Read More...

Mobility cos may downsize fleet as rides thin out 

Shared mobility companies like Ola and Zoomcar may downsize their fleets, as demand stagnates amid rising cases of Covid-19 infections across the country. These companies have approached leading pre-owned car dealers, such as Mahindra First Choice (MFC) and Maruti True Value, to find prospective buyers for their vehicles, multiple people in the know told ET. The plan is start unloading a large number of vehicles starting from end of this month, they added. Ola Fleet Technologies has around 30,000 cars which it leases out to drivers on its platform. Zoomcar owns more than 10,000 cars that customers rent on a self-drive basis A large portion of their fleets has been unused since the beginning of the lockdown, reported the Economic Times.