Category: Companies

GMM Pfaudler acquires majority stake in Pfaudler Group

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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GMM Pfaudler’s shares rise in Pfaudler Group as the company acquires majority stake in the global business of the latter. Now, GMM will hold 34.4 percent stake in the Pfaudler Group.

Talking about loan against pledged taken by Pfaudler International, Tarak Patel, Managing Director at GMM Pfaudler, said, “The loan has been transferred to GMM International which is the holding company that we have created. This company is in Luxembourg and the entire facilities will be rolled over to this new company and that has already happened as of yesterday.”

“The current debt for the international business is about $ 55 million, we have cash on hand as well about 30 million, so net debt is around $25 million.”

On Q4 numbers Patel said, “This consolidation will change the Q4 numbers significantly so as a standalone company we are much smaller, on a consolidated basis we are will be about Rs 2,000 crore for FY21. So we will get two months of consolidation February and March so there will be a significant improvement in the Q4 numbers of GMM in consolidated numbers.”

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cairn Energy files case in US to push India to pay $1.2 billion award

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cairn Energy has filed a case in a U.S. district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues.

In December, an arbitration body awarded the British firm damages of more than $1.2 billion plus interest and costs. The tribunal ruled India breached an investment treaty with Britain and said New Delhi was liable to pay.

Cairn asked the U.S. court to recognise and confirm the award, including payments due since 2014 and interest compounded semi-annually, according to the Feb. 12 filing seen by Reuters.

The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the government did not pay, a source with knowledge of the arbitration case told Reuters.

“If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the U.S.,” the source said.

Reuters reported last month that Cairn was identifying India’s overseas assets, including bank accounts and even Air India planes or Indian ships, that could be seized in the absence of a settlement.

Cairn declined to comment but pointed to a Feb. 9 Twitter post where it said Chief Executive Simon Thomson was looking forward to meeting India’s Finance Minister in Delhi next week.

“We would request, along with others, that the Indian government move swiftly to adhere to the award that has been given,” Thomson said in the video posted on Twitter by Cairn.

“It is important for our shareholders who are global financial institutions and who want to see a positive investment climate in India. I am sure that in working together with the government we can swiftly draw this to conclusion and reassure those investors,” he said.

India’s finance and external affairs ministries did not immediately respond to requests for comment.

Cairn aims to enforce the award under international arbitration rules, commonly called the New York Convention, and recover losses caused by India’s “unfair and inequitable treatment of their investments”, the court filing showed.

The company has registered its claim against India in the Netherlands and France, telling regulators in the two countries that they may receive court orders to seize of some Indian assets, and the firm was preparing to do the same in Canada and United States, Reuters reported last month.

India lost another major international arbitration case last year against Vodafone over a $2 billion retrospective tax dispute.

The government has challenged the arbitration verdict in the Vodafone case. It has yet to say how it will proceed in Cairn’s case where it has to make a significant payment.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FMCG industry grew 7.3% in December quarter, smaller companies fared better than large players

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Consumption in India is picking up on the back of a healthy festive period in November-December, and price hikes in some food categories. As more people consume staples, home and personal care products, the Fast Moving Consumer Goods (FMCG) industry grew at 7.3 percent in the October-December quarter as compared to the same period last year, market research firm Nielsen has said.

The report notes that the large FMCG companies, especially those with over Rs 600 crore in annual sales bounced back after two-quarters of decline with a 5 percent value growth and a 4 percent growth in volume. Smaller manufacturers (annual sales less than Rs 100 crore), however, continue to perform better with double-digit growth of 16 percent in the December quarter as compared to the year ago. “Rise in consumption volume and price-led growth have an equal proportion to this growth trajectory among the group of small manufacturers. This group was buoyed due to its higher dependence on Rural India and ‘Staple Foods’, both of which have performed better,” the report stated.

Nielsen’s report evidences what FMCG companies in India have said over the past quarter, which is that urban consumption is picking up, even as rural consumption continues to remain resilient. After two-quarters of decline, the metropolitans, which is cities with more than a million population, grew by 0.8 percent while rural markets grew 14.2 percent in the December quarter as against a 10.6% growth in the September quarter. Nielsen says that the sharper recovery in the rural markets was on the back of favourable agricultural sector performance, government action towards rural employment generation, and rural India had the lesser impact of the COVID19 pandemic.

Within metros, traditional trade channels, which comprises kirana and neighbourhood stores continued to grow clocking a 8 percent growth. Modern Trade, which is supermarkets and large format stores saw a negative growth of 2%. However, Nielsen says this was still a strong recovery from a negative growth of 15% in the September quarter. E-commerce, which saw a spurt in growth through the pandemic in back to pre-covid levels, led by a growth spurt in metros. This is something top management of FMCG  companies such as Britannia and HUL also said during their Q3 earnings.

In terms of categories, the ‘Hygiene & Immunity building’ categories grew 46 percent in value, driven by a consumption growth of 34 percent compared to the same period last year.  The ‘home and personal care’ category recovered too, clocking a 5 percent volume growth. The food categories, meanwhile saw a 10% growth riding on boost in consumption as well as price increase in some food baskets. While the growth was across the food basket, staples, which includes edible oils, spices, packaged rice, etc., grew 18 percent.

“Sustained interest in health and hygiene products signifies a defining trend that the behaviour is now getting deeply ingrained as a habit. In addition, people stepping out of home with caution and disrupted commutes have caused huge shifts in retail sales of FMCG categories, especially in bigger cities in India. These trends will have big implications for brands and retailers in the years to come,” Sameer Shukla, Executive Director, Retail Intelligence, India, Nielsen IQ said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Group to buy majority stake in BigBasket for approx Rs 9,100 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Tata Group and leading e-grocer Bigbasket have finally inked a deal, with the former set to acquire a 68 percent stake in the Bengaluru-headquartered startup. The companies are now awaiting approval from the Competition Commission of India (CCI) before the deal is formally announced, according to sources.

CNBC TV 18 has learned that the Tata Group will pick up the majority stake for around Rs 9,100- Rs 9,200 crore, buying out investors Alibaba and Abraham Group completely.

Tata Group and BIGBASKET did not offer comments on queries around the deal.

The deal will value BigBasket at Rs 13,300 odd crore (around $1.8 billion), higher than the $1.23 billion that the startup was valued at as of March 2020, as per data from Tracxn.

Alibaba held a 29.1 percent stake in BIGBASKET, while the Abraham Group held a 16.3 percent stake, as per data from Tracxn.

The Bigbasket leadership, led by CEO Hari Menon are set to continue in their roles under the new structure.

Bigbasket is currently seeing over 3 lakh orders daily, as per market research firm Forrester.

The company’s B2C business (Innovative Retail Concepts) saw revenues grow 44 percent in FY20 to Rs 3418 crore, though losses also shot up 22 percent to Rs 424 crore.

BigBasket’s wholesale business Supermarket Grocery Supplies saw a 36 percent jump in revenues for FY20 to Rs 3818 crore, with losses shooting up by 26 percent to Rs 710 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect margin to improve from Q3 level of 6.3%, says Shalimar Paints’ Ashok Gupta

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shalimar Paints reported its second consecutive cash positive quarter after 14 quarters despite the bottomline being impacted by tax expenses. Ashok Gupta, Managing Director of the company spoke to CNBC-TV18 to give Q3 fineprint and outlook for 2021.

Talking about the topline, Gupta said, “We have reported second consecutive quarter of cash positive and our revenues in this quarter are flat as compared to last year even though they have been growing quarter-on-quarter (QoQ). This quarter we had a good growth of around 10 percent in the decorative segment, but on the industrial segment we have not been able to grow much.”

On margin outlook, he said we are looking at good growth as compared to last year. “Margins we had 6.3 percent EBITDA last quarter, margins will improve from here onwards.”

While on raw material cost, “There has been some increase in the cost of raw materials, we have been able to pass part of it to the market, and balance part has still to be passed on. However, because of the rise in revenues, our margins will continue to grow.”

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Clariant Chemicals to buy 51% in India Glycols’ specialty chemical biz

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As far as specialty chemicals space has been buzzing for some time now and we learnt that Clariant Chemicals is likely to acquire about 51 percent stake in India Glycols’ specialty chemical business.

India Glycols is currently present in three verticals, i.e., natural active pharma, nutraceuticals, and specialty chemicals. Clariant Chemicals is eyeing a 51 percent stake in the last vertical.

In terms of valuation, this transaction is likely to value at about Rs 1,000 crore and through this stake sale India Glycols would be raising approximately Rs 500 crore.

Watch the video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bosch and Siemens to foray into new home appliance segments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Riding on the surge in demand over the past two quarters, German home appliances maker Bosch and Siemens is drawing up ambitious plans to become a formidable premium home appliance player in India.

When the world worked from home throughout the COVID19 pandemic in 2020, the demand for home appliances shot up within months of the lockdown. People began cooking more at home due to fears of infection and as a result, the demand for refrigerators, mixer grinders, and dishwashers among others shot up. Bosch and Siemens said it registered its best-ever growth, nearly 25 percent, in the appliances segment in 2020.

“This was the best year ever for BSH not just in India, but across the world. After zero turnover in April, we were worried about a 20-25 percent de-growth, but the business pulled up so well that we saw good growth over 2019 as well. From June to December we recorded over 40 percent growth. People were looking for premium quality appliances,” Neeraj Bahl, MD and CEO, Bosch and Siemens Home Appliances said.

The growth was led by mixer grinders, front-load washing machines and dishwashers. According to Bahl, the company sold over 1.5 lakh units of mixer grinders, around 2.5 lakh units of front-load washing machines and nearly 55,000 units of dishwashers. Mixer grinders, he says, contributed to over 55 percent of their sales.

The growth trajectory, Bahl says continues into 2021. The company expects the growth of 35-40 percent in January to March quarter, and over 50 percent growth in the following quarter.

Enthused by the demand in 2020, the company has now lined up launches across product segments in 2021. The company will be foraying into categories such as standalone hoods, chimneys and cooktops. From August 2021, the company plans to launch over 25 models of chimneys and hoods with premium features such as auto cleaning, and various models of cooktops and gas burners.

“According to a consumer survey, gas burners are the first product any Indian buyer purchases when they buy or renovate a home. So we are launching four models of this at very competitive prices. We will be producing this in Chennai, and have set up a production line for this as well,” Bahl said.

The company also plans on launching several new models of front-loading washing machines, 8-9 new models in the above 8-kg washing machine segment, and over 25 new models of refrigerators, where it also plans to foray into the frost-free segment.

Apart from the chimneys and hoods,  the company will be producing all the other home appliances in India at its Chennai plant that it set up last year at an investment of Rs 300 crore.

“We want to be a significant player in the consumer durable segment. People know Bosch appliances now as a washing machine company or a built-in appliances company. We want to change that image to a big home appliance company. But we will not move away from being a premium player, but we want to enter every India household with premium products, but far superior quality,” he said.

The company is also planning to expand its luxury home appliances segment with its luxury brand Gaggenau. It has opened an experience centre in Mumbai for customers to try these products out. “We will be having a high focus on the premium and luxury segment. We opened the experience centre UnserHaus, and we want to expand the retail network for Gaggenau. Earlier we were only focused on projects and select kitchen dealers, but now we want to take the brand to the next level. We are looking at 150-200 percent growth in Gaggenau this year and will be expanding the retail network across the major 10-15 cities,” Bahl added.

Despite ambitious growth plans, the company says that inventory, supply chain and input cost pressures continue to impact costs of the company. BSH, which saw an input cost pressure of over 5 percent already hiked prices of its appliances by 2 percent and could take another 2-3 percent hike should costs pressures remain.

“From a sales point of view, we are facing an acute shortage in washing machines, dishwashers and mixer grinders. I don’t see inventory and supply chain pressures going down any time soon, but things might ease by end of April. The input cost pressure of around 5 percent on us, could result in a 10% increase for the end consumer. But we are trying to contain costs. We will absorb some, and pass on some costs,” Bahl added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Growth in absolute demand leads to higher trading: PTC India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It has been a good quarter and a better nine months that we could have expected sitting in April 2020 when we had seen sudden fall in the demand across board, said Deepak Amitabh, CMD of PTC India.

Speaking to CNBC-TV18, he said, “This transition period led to changes in demand patterns and the demand supply mismatch. The demand supply mismatches led to a growth in the opportunity for traded power and this transitioned more than growth in absolute demand increases their space for trading.”

He said, “Prior to June 20, we used to have day ahead market, from June 20 the real time market started and therefore the mismatches also, the time constraints also became. In a 6.6 billion unit on the real time market which has been done, PTC has contributed more than 45-48 percent out of this real time market.”

On PTC, Amitabh said, “The preliminary discussions have been going on and responses have been evaluated also. So, we believe that in the next financial year we should be able to divest PTC Energy Limited.”

“In PTC Financial Services, so here the divestment process has begun but it is taking some time, we would have liked to see more progress and a definite outcomes by March-end,” he added.

Watch this video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CEAT ropes in Rana Daggubati as brand ambassador for new range of bike tyres

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tyre maker CEAT has roped in actor Rana Daggubati as its brand ambassador for promoting the ‘Puncture Safe’ range of bike tyres. As part of an integrated marketing campaign across all five southern states, Daggubati will feature in the new commercial for these tyres to be aired across TV and digital platforms, CEAT said in a release.

The company has launched the tyres for motorcycles in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Kerala, it said. The new commercial will also be aired during the ongoing India-England Test series, it added.

“We are delighted to have Rana Daggubati on board for this campaign. The India-England test series offers an ideal opportunity for us to connect with our customers as it is one of the most widely watched events in India with a massive viewership,” said Arnab Banerjee, chief operating officer, CEAT.

“These tyres don’t lose air by sealing themselves on their own even after getting punctured, it said adding the technology can seal punctures for nails up to 2.5 mm in diameter. I am proud to be associated with one of the most respected brands in India. I am looking forward to an exciting journey with CEAT Tyres,” said Daggubati.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Future Group case: NCLT says Amazon should not be a perpetual objector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Company Law Tribunal (NCLT) on Friday told e-commerce Amazon that they have no ‘locus standi’ in Future Group calling for the shareholder meeting. It added that Amazon should not be a perpetual objector.

NCLT heard Future Group’s plea to call for a shareholder meeting.

Amazon had, meanwhile, sought to file an ‘interlocutory application’ in NCLT proceedings

NCLT will now resume hearing at 4 pm today.

On Thursday, Amazon had moved to Supreme Court against Future-Reliance Retail deal, challenging the lifting of “status quo” orders by the division bench of Delhi High Court.

Amazon, locked in legal disputes with Future, alleged the Indian firm violated contracts by agreeing to sell its retail assets to Reliance Industries last year. Future denies any wrongdoing.

The Delhi High Court dealt a blow to the US firm by revoking a previous court decision that effectively blocked the deal, and Amazon had filed an appeal against it in the Supreme Court in the capital city.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow