Page 729 - Business Finance
Emissions squeeze sparks electric surge for Volkswagen
Mammoth German carmaker Volkswagen massively expanded Tuesday its plans for electric car sales in the coming decade, as its scramble to meet tougher greenhouse emissions targets has already begun weighing on profitability. Higher unit sales and increased revenues in 2018 helped VW to a net profit 6.0 per cent higher, at 12.15 billion euros (USD 13.7 billion), the group said. But profit margins were squeezed as the group with its 12 brands struggled with new EU emissions tests - introduced following its "dieselgate" emissions cheating scandal broke in 2015 - and massive investments in the switch to electric. The costs did not put bosses off doubling down on their battery-powered ambitions, saying they now plan 70 new electric models by 2028 rather than 50 and lifting sales targets by seven million, to 22 million vehicles by the same date. In 2018, "pressure on our profit margins grew, not least because of electric mobility," Volkswagen finance chief Frank Witter told business daily ...
Daimler Buses eyeing sustainable growth in 2019: Top executive
: Daimler Buses India, a subsidiary of Germany-headquartered Daimler AG, is eyeing sustainable growth in revenue as it expects a rise in volumes this year, a top official of the company said Tuesday. "We are still in the growth phase. It is sustainable growth, we expect good growth this year," managing director of Daimler Buses India Thomas Fricke said here. The company recorded a 60 per cent rise in revenue while the sales in the domestic market witnessed a 70 per cent increase and exports grew by 50 per cent in 2018, he said. Asked about the factors that would contribute to the growth in 2019, he told PTI: "Firstly, we have a wide product range. We cover a lot of different segments. Secondly, we expand our network and have better customer-reach. And thirdly, we expect the overall industry volume to go up this year." To a query on the financial show of Daimler Buses in 2018, Fricke declined to share the details. However, he said the company had sold 1,555 units of ...
Array Networks to invest USD 20 mn in 2019, increase workforce fivefold
Silicon Valley-based IT firm Array Networks Tuesday said it is planning to invest USD 20 million (about Rs 140 crore) this year to increase its research and development (R&D) workforce by about fivefold in India. "We started R&D work in India in 2012. Now, we think Indian R&D team can develop product on their own and sell to other parts of the world. We will invest USD 20 million this year to increase our headcount in India by 500 per cent," Michael Zhao, Array Networks President and CEO said here. The company provides IT security solutions, optimise application performance and facilitate related transactions. "We will continue to focus on government business which is the biggest contributor to our business, we are going to build partner community for opportunities in enterprise segment," Zhao said. The company would invest to enhance marketing activities to tap into growth potential in enterprise segments, Zhao added. Its hyper conversion business jumped 275 per cent last
HC asks RPL, Edelweiss to try resolving share sale issue
The Bombay High Court on Tuesday suggested Reliance Power and Edelweiss Group to resolve their dispute over sale of pledged shares amicably while posting the matter for hearing after two weeks. A division bench of Chief Justice N H Patil and Justice N M Jamdar was hearing a petition by Reliance Power's promoter company Reliance Project Ventures and Management Pvt Ltd. The promoter entity has challenged a single judge bench's order that refused to stop sale of pledged shares by Edelweiss Group or grant any relief to Reliance Power Ltd (RPL). The division bench suggested the parties concerned to try resolving the dispute out of court and said it would hear the petition after two weeks. "Such matters can be resolved amicably...outside of court...consider it," Chief Justice Patil said. On February 13, a single bench presided by Justice K R Shriram said it found no merits in RPL's arguments prima facie and the entire pleadings made by RPL "smacked of deceit". RPL argued before Justice ...
Sebi lifts foreign investment cap in corporate bonds
Markets regulator Sebi on Tuesday withdrew the 20 per cent limit on investments by Foreign Portfolio Investors in corporate bonds of an entity. In a notification, the regulator said the restriction is being withdrawn in accordance with a circular issued by the Reserve Bank of India (RBI). In June last year, the Securities and Exchange Board of India (Sebi) had mandated that no Foreign Portfolio Investors (FPIs) shall have an exposure of more than 20 per cent of its corporate bond portfolio to a single corporate. However, the central bank in February lifted the restriction in view of market feedback. To give effect to the directions of the RBI, the regulator said provisions of its June 2018 circulars with respect to exposure of more than 20 per cent "stands withdrawn with immediate effect".
OYO to invest Rs 1,400 cr in India and Nepal operations in 2019
Hospitality firm OYO will invest Rs 1,400 crore in India and Nepal markets in 2019 as part of efforts to increase infrastructure, strengthen technology and internal capability, it said Tuesday. The company also announced the launch of a new brand, Collection O hotels, to its existing portfolio of the budget- to mid-segment hotel chain brands. "Rs 1,400 crore will go in capex, technology and leadership," OYO India and South Asia CEO Aditya Ghosh told reporters here. The idea is to further deepen and widen presence across India while focusing on aggressive capacity building to bring the choice of an OYO hotel to every corner of the country, he added. The company is currently present in over 259 cities in India with over 8,700 buildings (hotels and homes) and more than 173,000 rooms. "As we expand our presence in the market, consistency of quality is key. As a customer first company, we are heavily invested in ensuring customer responsiveness," he added. OYO also launched an in-app SoS ..
FSS Makes Strategic Investment in Ecentric to Accelerate Growth Momentum in Africa
/ -- Acquires 46% stake with a clear intent to expand its market presence in Africa FSS (Financial Software and Systems), a global payments technology company, has announced a strategic investment in Ecentric Payment Systems, a Standard Bank subsidiary and a leading payment processor in South Africa. FSS has acquired a 46% stake in Ecentric through a combination of primary and secondary investments, with a potential to further its stake holding. (Logo: https://mma.prnewswire.com/media/682112/FSS_Logo.jpg ) FSS is a global leader in delivering integrated payment solutions with a portfolio of 130 customers globally and with two decades of experience in the payment's domain. The company's product portfolio spans the complete payments spectrum including Issuance, Acquiring, Smart Reconciliation, Digital Banking, Digital Security, Payment Processing and Switching and Payment Analytics. Headquartered in South Africa, Ecentric, a Standard Bank subsidiary, is a leading payment switching and .
Rupee spurts to over 2-month high on unabated foreign fund inflows
The rupee on Tuesday gained 18 paise to close at more than two-month high of 69.71 against the US dollar propelled by foreign capital inflows and a weaker greenback in overseas markets. Dollar selling by exporters and banks also supported the domestic currency, forex dealers said. Foreign investors continued to pour in capital into Indian markets Tuesday amid growing risk appetite for riskier assets. According to provisional exchange data, FPIs put in Rs 2,477 crore on a net basis in capital markets Tuesday. They had invested a net Rs 3,810.60 crore on Monday. "Rupee gains for a second day as risk-on sentiment boosts hopes of more inflows into the domestic equity and debt market. The benchmark BSE Sensex closed at five-month high with whopping gain of 1.30 per cent," V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities observed. The US dollar index -- a measure of the greenback's strength against a basket of major global currencies -- was lower by 0.17 per cent at ...
Mahindra CIE to acquire Aurangabad Electricals for Rs 875.6 cr
Auto component firm Mahindra CIE Automotive Tuesday said its board has approved to buy Aurangabad Electricals Ltd (AEL) for Rs 875.6 crore. The company's board has resolved to acquire the business of AEL through acquisition of 100 per cent of equity shares for an enterprise value of Rs 875.6 crore, which includes a future deferred payment estimated up to Rs 62.2 crore, Mahindra CIE Automotive (MCIE) said in a regulatory filing. The acquisition is proposed to be completed on or before April 10, it added. "This acquisition allows MCIE to enter the aluminum die casting technology," MCIE Chief Executive Officer Ander Arenaza said. AEL's complementary product and customer mix leads to further diversification of the business portfolio of MCIE India, strengthening especially its presence in the two-wheeler space, he added. MCIE is part of the Spanish group CIE Automotive. Currently, Mahindra group owns around 11.5 per cent stake in MCIE. "We are convinced that the partnership with MCIE and ..
Tax-free, deficit budget presented in Meghalaya Assembly
Meghalaya Chief Minister Conrad K Sangma Tuesday tabled a Rs 1,223 crore tax-free, deficit budget in the Assembly for 2019-2020. Sangma, who holds the Finance portfolio, said the government has accorded highest priority to improve revenue collection and a committee has been set up to methodically look into all issues of collections. The government has also given priority to human development and health, besides livelihood programmes and improvement of connectivity. The government intends to set up IT-enabled systems for weighing of vehicles at gates and QR codes for transport challans in the next fiscal year to improve tax collections which are estimated at Rs 2,090 crore for tax revenue and Rs 601 crore for non-tax revenue, Sangma said. He said the new GST regime has started to stabilise and has contributed to the ease of doing business. The government has also created a window agency for ease of doing business and it approved 59 projects with investments of Rs 2,830 ...
Retail inflation rises to 4-month high of 2.57 pc in Feb
Retail inflation rose to four-month high of 2.57 per cent in February, mainly driven by higher food prices. The retail inflation based on Consumer Price Index (CPI) stood at 1.97 per cent in January and 4.44 per cent in February 2018. Food inflation based on CPI, however was in negative at 0.66 per cent. The latest print is higher than (-) 2.24 per cent in January. The earlier lowest inflation was 2.33 per cent in November 2018. The Reserve Bank factors in retail inflation while deciding at its monetary policy.
Ambedkar memorial to fetch Rs 90 cr annually: MMRDA tells HC
The Mumbai Metropolitan Region Development Authority (MMRDA) told the Bombay High Court on Tuesday that Maharashtra is likely to generate Rs 90 crore annually from the proposed memorial and statue of Dr B R Ambedkar in the metropolis. A bench of Chief Justice Naresh Patil and Justice N M Jamdar directed the MMRDA to file an affidavit detailing the state's plan to generate revenue and attract visitors to the project. MMRDA's counsel S B Talekar told the bench that the proposed memorial was not a "wasteful" project, as alleged in a public interest litigation filed in the high court. Instead, the memorial will be "a major tourist attraction, and help earn the state a revenue of Rs 90 crore each year," Talekar said. He was responding to a PIL filed by city-based activist Bhagvanji Raiyani, challenging the state government's decision to construct the memorial across a 125-acre mill plot in Dadar area. The project is likely to cost around Rs 700 crore. Raiyani sought directions from the ...
Adidas elevates India head Dave Thomas, assigns him to look emerging markets
German footwear and accessories major Adidas has elevated its India head Dave Thomas as the managing director for emerging markets as part of its top-level reshuffle, said an official. Thomas' new assignment would be effective from April 1 and the company is now looking for his successor in India. He is replacing Martin Shankland, who has been elevated to the Adidas executive board responsible for global operations effective. Adidas Head of Media Relations Claudia Lange said: "Dave Thomas, at Adidas currently managing director India, was promoted and appointed managing director emerging markets, effective April 1st." In his new role, Thomas would handle emerging market portfolio at Adidas, which comprises growing regions such as Middle East, Turkey, India and Africa. "In his new role, Dave will report to Roland Auschel, executive board member, global sales at Adidas," she added. Over Thomas successor in India, she said Thomas would continue to oversee the Indian operations till his ...
DPIIT extends deadline for public comments on draft e-commerce policy
Deadline for public comments on draft national e-commerce policy has been extended till March 29, according to Department for Promotion of Industry and Internal Trade (DPIIT). The earlier deadline was March 9. "Comments/suggestions on the draft policy are hereby invited from stakeholders with the last date for receiving comments being March 29, 2019," DPIIT, which comes under the commerce ministry, said. The draft seeks to provide a policy framework that will enable the country to benefit from rapid digitisation of the domestic, as well as global economy, it said. The draft addresses six broad issues of the e-commerce ecosystem -- data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy and export promotion through e-commerce.
US warns of WTO action over 'discriminatory' new digital taxes
The US is weighing a complaint at the World Trade Organisation against "discriminatory" new taxes on digital giants such as a Facebook and Google which are being planned by France and other EU nations, a top US trade official said Tuesday. "Various parts of our government are studying whether that discriminatory impact would give us rights under trade agreements and WTO treaties," Chip Harter, a Treasury official and US delegate for global tax talks, said in Paris.
Malaysia Airlines could be sold or shut down: PM
Malaysia Airlines may be sold or shut down, Malaysia's leader said Tuesday, the latest bad news for a carrier that has been in crisis since suffering the loss of two planes. The 71-year-old airline has been on the ropes since 2014 when Flight MH370 disappeared and MH17 was shot down by a Russian-made missile over war-torn Ukraine. With the carrier teetering on the brink of bankruptcy, sovereign wealth fund Khazanah stepped in to take it over several years ago and major reforms were instituted, including cutting thousands of staff. But it has continued to fare poorly and its performance was blamed in large part for a set of poor financial results released by Khazanah last week. Responding to questions about the airline's future, Prime Minister Mahathir Mohamad told reporters in parliament: "I think it is a very serious matter, to shut down the national airline. "We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it off or we should
Sensex jumps 482 points after FIIs pour in funds, closes at 37,536
Equity benchmark indices moved up sharply again on Tuesday as inflows from foreign institutional investors turned on the market mood with a focus on prospects of the current government in the ensuing General Elections.The sentiment also got a boost by a strong rupee and gains in Asian stocks after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament..
Resolver launches portal to address consumer grievances in India
Start-up Resolver India Tuesday launched a portal to help in speedier resolution of consumer complaints. Speaking at the launch here, Resolver India co-founder and Chief Executive Officer (CEO) Pratyush Singh said the company's goal is to break down the walls between consumers and businesses by building trust and understanding through a speedy and jargon-free process. "Resolver.in is powered by machine learning and artificial intelligence (AI) which guides consumers and supports organisations by making recommendations on what their next steps should be and when to take them," Singh said. Resolver said it has a proven track record and is the preferred resolution tool of millions of consumers in the UK with over 3 million case files closed and a customer satisfaction rate of over 98 per cent in the UK. Resolver India (previously known as Expertily), which is an Indian start-up, has received funding from Resolver Group UK. "With India leading to grow into one of the top-3 consumer ...
Australia Market falls 0.1%
Energy stocks were up after oil prices rose following Saudi Arabia declaring it would cut production. Woodside Petroleum was up 0.75%, Beach Energy up three% and Santos was up 1.9%.
Japan Nikkei rises on upbeat offshore lead, weaker yen
All 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Securities & Commodities Futures, Electric Appliances, Real Estate, Precision Instruments, Machinery, Glass & Ceramics Products, and Iron & Steel issues being notable gainers.