Tag: reliance jio

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Reliance Jio Launches ‘JioBusiness’ to Digitally Transform MSMEs – Top Indian Market News

Reliance Jio launches ‘JioBusiness’ to digitally transform MSMEs

Reliance Jio has launched an integrated technology solution- JioBusiness to transform around 5 crore micro, small, and medium enterprises (MSMEs) in India. The company will provide enterprise-grade fiber connectivity that offers voice and data services. It will also provide digital solutions that help enterprises manage and grow their businesses. JioBusiness will offer devices to enable leading digital solutions for MSMEs. 

Read more here.

Vehicle registrations fell 13.43% YoY in February: FADA

As per data released by the Federation of Automobile Dealers Associations (FADA), overall vehicle registrations declined by 13.43% year-on-year (YoY) to around 14.99 lakh in February 2021. The figure stood at over 17.31 lakh units in the corresponding period last year (Feb 2020). However, the data shows that registration of passenger vehicles grew by 10.59% YoY to 2.54 lakh units last month. 

Read more here.

Puravankara to invest Rs 450 crore to develop residential project in Mumbai

Puravankara Limited will invest Rs 450 crore to develop a mixed-use residential project in Chembur, Mumbai. The project, named ‘Purva Clermont’, will come under the developer’s luxury portfolio World Home Collection. The project will be built on a 2.25-acre land parcel and will have five towers— four residential buildings with 233 units and one commercial office building. Construction of the project will begin in 3 months and is expected to be completed by 2025.

Read more here.

L&T delivers 700 MW steam generator ahead of schedule

Larsen & Toubro (L&T) has despatched the first out of four 700 MWe (megawatt electrical) steam generators for the Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) ahead of schedule. With this, the company has created a new global benchmark in the nuclear manufacturing industry. The hi-tech equipment was manufactured at L&T’s manufacturing facilities at Hazira and Vadodara Heavy Engineering Works (VHEW).

[GHAVP is a proposed 2,800 MW nuclear power plant that is being built on a 560-hectare area near Gorakhpur village in Haryana]

Read more here.

JMC Projects signs agreement with FDC to construct 2,000 social housing units in Maldives

JMC Projects (India) Limited has signed an agreement with Fahi Dhiriulhun Corporation Ltd (FDC) for the design, finance, and construction of 2,000 social housing units in Hulhumale Island of Maldives. FDC is a state-owned company of the Government of Maldives. The total value for the project is estimated to be around $137 million (~Rs 1,000 crore). Mumbai-based JMC Projects is a leading construction company. It is also a subsidiary of Kalpataru Power Transmission Limited. 

Read more here. 

Inox Wind signs pact for 92 MW-projects with Integrum Energy

Inox Wind Limited has signed an agreement with Integrum Energy Infrastructure to supply, erect, and commission 92 megawatts (MW) of wind power projects. The projects comprise 2 MW turbines with a combination of total turnkey and limited scope supply services. The company will supply and commission wind turbines at Gujarat, Karnataka, Maharashtra, and Tamil Nadu by the third quarter of the next financial year (FY 2021-22). 

Read more here.

Aurionpro Solutions enters into partnership with UK-based Future-Tech

Aurionpro Solutions Ltd has entered into a strategic partnership with UK-based Future-Tech for data center design and consultancy projects in India & South Asia. In recent years, the company has ventured into data centre building, consulting, and hybrid cloud services. Aurionpro will provide consultancy and assistance for rolling out 100 MW data centres for one of its customers within the next few years. Mumbai-based Aurionpro Solutions is an IT services company. It is also engaged in the sale of equipment and software licenses.

Read more here. 

Easy Trip Planners IPO subscribed 7.20 times on second day of bidding

The Rs 510-crore initial public offering (IPO) of Easy Trip Planners was subscribed 7.20 times on the second day of bidding. The issue received bids for 10.85 crore equity shares against an offer size of 1.5 crore shares. The portion reserved for retail investors was subscribed 32.71 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 4.05 times and that of qualified institutional buyers (QIBs) 28%.

To know more about the IPO, click here.

Praj Industries secures order from HPCL for setting up biogas plant

Praj Industries has received an order from Hindustan Petroleum Corporation Ltd (HPCL) for setting up a compressed biogas (CBG) plant at Badaun, Uttar Pradesh. The company will offer its RenGas technology to produce CBG from rice straw. The project will have the capacity to process 35,000 metric tonnes (MT) of rice straw as feedstock to generate 5,250 MT of CBG annually. Praj Industries stated that this project will be completed and commissioned within 12 months.

Read more here.

Indoco Remedies launches Brinzolamide Ophthalmic Suspension in the US

Indoco Remedies Limited has announced the launch of Brinzolamide Ophthalmic Suspension in the United States. The product is developed and manufactured by Indoco Remedies for TEVA Pharmaceuticals at its facility in Goa. It is used to treat high pressure inside the eye due to ocular hypertension and open-angle glaucoma. As per IQVIA data, the US market size of this product stood at $184 million (~Rs 1,343 crore) as of December 2020.

Read more here.

Jubilant Foodworks completes acquisition of 100% stake in Fides Food

Jubilant Foodworks announced that its wholly owned subsidiary, Jubilant Foodworks Netherlands B.V., has successfully completed the acquisition of 100% stake of Fides Food Systems Coöperatief U.A. Fides Food is the beneficial owner of 32.81% equity shares in DP Eurasia, which is the master franchisee of Domino’s Pizza in four countries— Turkey, Azerbaijan, Russia, and Georgia. The total value of the acquisiton was nearly Rs 252 crore.

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Editorial

Reliance Q3 Results: A Quick & Easy Analysis

India’s largest company by market capitalization, Reliance Industries, declared their third-quarter results for FY21. Reliance announced consolidated revenue of Rs 1,37,829 crore, 7.4% higher than what they reported the previous quarter. Even though the revenue increased only marginally from Q2 to Q3, the net profits increased by a massive 40%. How did Reliance achieve such a feat? How did all of their segments perform? Let’s have a look.

Digital Services

Jio declared a consolidated operating revenue at Rs 19,475 crore as compared to Rs 18,496 crore reported in the previous quarter. The net profits also witnessed a QoQ 15% rise to Rs 3,486 crore. As of December 2020, the total customer base increased to 410.8 million after the addition of 25.1 million users. Average Revenue Per Unit (ARPU) increased to Rs 151 from Rs 145 in this quarter. By adding more customers and making more money from each customer, Reliance Jio just had nowhere to go but higher.

Source: Reliance Q3 Investor’s presentation

They had spread their 4G LTE network to new places to serve people with better connectivity. Total data traffic during the quarter increased by almost 5% to reach 1,586 crores GB. The Covid-19 pandemic has forced most of us to get on the digital platforms. JioMeet crossed 15 million users by adding more people from October to December. This digital platform for online meetings is now being used by many large enterprises, healthcare companies and government institutions. 

The chairman and MD of Reliance, Mukesh Ambani, was vocal about the future success of Jio and India together. He said, “India is today among the leaders driving the Digital Revolution in the world. In order to maintain this lead, Jio will continue to accelerate the rollout of its digital platforms and indigenously developed next generation 5G stack and make it affordable and available everywhere. Jio’s 5G service will be a testimony to the vision of AtmaNirbhar Bharat.”

Reliance Retail 

The retail segment of the company was one of the hardest hit in Q1 FY21 due to nation-wide lockdown. But as the restrictions eased up, the retail arm of Reliance kept growing. As of December 2020, 96% of stores of the company are in operation. By the end of the second quarter of this year, only 52% of the stores were operational. Even though more stores were allowed to open, overall footfall remained at 75% of Pre-COVID level. On a positive side, Fashion & Lifestyle performance has surpassed the pre-COVID levels. 

Source: Reliance Q3 Investor’s presentation

The revenue of this segment reported is Rs 37,845 crore, 8% lower when compared to the previous quarter. The main reason for this has been the transfer of Petro Retail dealership to RBML entity (Reliance-BP Joint Venture). Also, we can expect the segment to run at full pace when a few more of the Covid-19 restrictions are eased up. Even though with lower revenue, net profit has jumped by 88% on QoQ, from Rs 973 crore to Rs 1830 crore. The most amazing contribution from Reliance Retail is that they have created 51,000 new jobs created during the COVID period. This is when other business are actually laying off their workers. 

Oil-to-Chemical (O2C)

The Oil-to-Chemical arm of Reliance continued on the path of resurgence which they started in the second quarter. Total revenue increased by 10% QoQ from Rs 76,184 crore to Rs 83,838 crore. EBITDA, which is Earnings before Interest Tax Depreciation and Amortization, reported a rise of 10.3% QoQ to Rs 9,756 crore. Last quarter, this number was at Rs 8,841 crore.  

Although the numbers have risen as compared to the previous quarter, yearly comparison gives us a completely different outlook. Reliance generated total revenue worth Rs 1,19,121 crore in the same quarter last year. That means, on a year-on-year basis, their revenue has fallen by a massive 30%! Not only this, their EBITDA has taken a huge hit of 28% in one year. Yes, the demand for different fuels are yet to reach the pre-covid levels but such a hefty fall in their core business was not expected at all.

Reliance is willing to incubate New Energy platforms. They aim to maximize downstream production, reduce transportation fuels and create clean and green energy fuels which can aid the country to run in the long term. Thus, this signals that they want to shift from their core business? A few months back, we did discuss Mukesh Ambani’s ambition of making a sustainable India. Does that mean that this giant company wants to move away into a new business? Do they wish to be known as a tech company? You can read more about here.

Reflecting on the future of sustainable energy, Mukesh Ambani said, “I am especially pleased that the world is now closing ranks for a strong global action on Climate Change. This gives Reliance the right opportunity to accelerate our own ambitious New Energy and New Materials business wedded to the vision of clean and green development. In line with this vision, our Oil-to-Chemicals (O2C) business has formally reorganised its reporting segments to reflect our new strategy and management matrix for this enterprise.”

To Sum Up

If you are a Reliance investor, you might be content with their performance. A company facing a dip in revenues has still managed to generate larger profits. This speaks how well they have paid attention to cutting their cost. A perfect example of operational efficiency!

We think that this can be another year where Reliance touches higher highs. If the government allows the roll-out of 5G in 2021, Reliance is at the best spot to take advantage in the Indian telecom sector. Reliance stated that they have already started advance tests to prepare its 5G network. They are only waiting for the government’s approval to the auction of spectrum. 

But it seems like Reliance has not been able to give enough focus to their oil-to-chemicals segment. If any company is not able to generate good numbers in its core business, doubts are bound to arise in their investor’s mind.

What are your opinions on Reliance? Do you think that they will grow even faster in 2021? You can find Reliance Q3 FY21 results here. You can find the investor’s presentation here. 

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Editorial

Reliance vs Farmers’ Protests

Telecom towers are an essential infrastructure that supports the continuous expansion of telecom companies. Major players such as Reliance Jio, Vodafone Idea, and Bharti Airtel operate tens of thousands of towers across urban and rural areas of India. There are over 5 lakh mobile cell towers that play an important role in accelerating the digital revolution in our country. 

Recently, we have come across reports stating that thousands of telecom towers have been vandalized by farmers in Punjab. Most of these towers were operated by Reliance Jio. Let us understand the reasons as to why Reliance has been facing the heat of the farmers’ protests. We shall also discuss the important developments that have taken place over the past few days.

The Telecom Tower Vandalism

On December 28, major news publications came up with a very shocking report: The farmers and support groups protesting against the Government’s new farm laws have damaged around 1,500 mobile towers of Reliance Jio Infocomm Ltd in Punjab. More than 176 signal transmitting sites were vandalised on a single day- December 27. They disconnected the power supply to the towers and cut fibre cables. The mobile and internet services of the company had been disrupted in the state, causing inconvenience to its consumers. The violent act by farmers also became a threat to the employees and technicians who were running the telecom towers.

The Chief Minister of Punjab, Capt. Amarinder Singh, directed the police to take strong action against anyone destroying telecom towers in the state. The Cellular Operators Association of India (COAI) condemned the vandalism of mobile towers by agitating farmers.

Why are Farmers Boycotting Reliance?

The attacks on Jio’s telecom towers comes amid speculation that the new farm laws allegedly benefit Reliance Industries. As we are aware, farmers from Punjab, Haryana, and Uttar Pradesh have been camping at the borders of Delhi for more than a month. They are protesting against three new farm laws that were passed by the Indian Parliament in September. The primary aim of these laws is to allow farmers to sell their produce to any buyer of their choice. Thus, they would be able to bypass middlemen or commission agents at state-controlled markets (mandis). 

Mandis, or marketplaces for selling farm produce, were set up in the 1950s to end the exploitation of farmers. The government would also pay them a Minimum Support Price (MSP) for their agricultural products. Many farmers see the MSP as a vital safety net, and started to become very sceptical of the new laws. One of their biggest fears is that large companies such as Reliance Retail would exploit these laws and drive them out of business. 

The Central Government and PM Modi have repeatedly said that procurement of crops at MSP will continue under the new laws. However, the farmers have stated that they would not stop their protests until these laws are repealed. They have also demanded the government to ensure a legal guarantee of MSP.

Reliance Jio, a subsidiary of Reliance Industries Ltd (RIL), has been facing the heat of the protesters. On December 27, it was reported that over 1.50 lakh Jio sims have been ported to Bharti Airtel and Vodafone Idea at protest sites. Around 500-600 people were getting their Jio sims ported every day. This was primarily seen in states such as Punjab and Haryana, wherein agriculture is the dominant activity. The farmers have also showed their dissent by torching Jio’s banners and advertisements. And then, the protesting farmers started damaging the telecom towers in Punjab.

Jio’s Allegations Against its Rivals

Reliance Jio sent a letter to the Telecom Regulatory Authority of India (TRAI) on December 10. They alleged that two companies had created an impression that Reliance stands to gain from the three new agricultural laws. It asked TRAI to take action against rivals Bharti Airtel and Vodafone Idea, for allegedly running a false propaganda campaign to attract its subscribers. Jio stated that they have been receiving a large number of port-out (cancellation) requests, which was mainly due to false information being spread to the farmers. It is not clear if Reliance had provided substantial evidence to support this extraordinary claim.

Both Bharti Airtel and Vodafone Idea (Vi) completely denied all allegations made against them. “Despite being provoked by some competitors who we know will go to any length to make baseless allegations, adopt bullying tactics and use intimidatory behaviour, we have always conducted our business with character and transparency”, said Bharti Airtel in a statement. Vi also stated that these were baseless allegations that were made to destroy their reputation.

On January 2nd, Bharti Airtel sent a letter to the Department of Telecommunications (DoT). The letter stated that ‘Jio’s allegations against the firm did not demonstrate any evidence that it had any hand in the ongoing issues that the company is facing.’ Bharti Airtel also said that the complaint should be dismissed “with the contempt that it deserves”. The telecom company also urged the DoT to introduce a policy to mandate ICR (Intra-Circle Roaming) in such situations of vandalism and network outages.

RIL Files Petition in Punjab & Haryana HC

On January 4, Reliance Industries Ltd (RIL) filed a petition in the Punjab and Haryana High Court “to bring a complete stop to the illegal acts of vandalism by miscreants”. The petition stated that “vested interests” were engaging in spreading false rumours against the group. RIL ensured that they had nothing whatsoever to do with the three farm laws, and in no way benefited from them.

In the petition, RIL stated that it is committed to empowering and supporting farmers. It highlighted that the Reliance Group never bought agricultural land for corporate farming and has no plans to do so either. RIL further claimed that it does not purchase food grains directly from farmers. In fact, its suppliers buy agricultural produce only at the Minimum Support Price (MSP) level. RIL urged the High Court to issue a suitable order to help protect its employees and property from vandalism.

On January 5, the Punjab and Haryana High Court issued notices to the Punjab Government and the Centre in response to Reliance Jio’s plea. The company’s lawyer, Ashish Chopra, said that the High Court has sought a response from the concerned government officials by February 8.

What Next?

With the destruction of telecom towers, the ongoing protests by farmers have turned out to be violent. Only a few of the damaged towers have been restored so far. Many subscribers or consumers of Reliance Jio are still facing network issues in Punjab. Major telecom companies are blaming each other for inciting such an aggressive act. The destruction of such vital telecom infrastructure needs to be stopped at all costs. Will the protests lead to Jio losing more subscribers? Will the farmers boycott more products of Reliance Industries? Or, will the concerned authorities find the people who damaged the towers and take strict action against them? We will have to wait and watch.

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Market News Top 10 News

Bharat Biotech’s Covaxin Gets Approval for Emergency Use – Top Indian Market News

Bharat Biotech’s Covaxin gets approval for restricted emergency use: Report

The Subject Expert Committee of the Central Drugs Standard Control Organisation (CDSCO) on Saturday gave its approval for the restricted emergency use of Covaxin in India. Covaxin is jointly developed by Bharat Biotech and the Indian Council of Medical Research (ICMR). This is the second Covid-19 vaccine that has been recommended for emergency use approval to DCGI, after Serum Institute’s locally produced Oxford-AstraZeneca vaccine ‘Covishield’. The Drug Controller General of India (DCGI) will give the final approval to both the vaccine candidates. [This has been reported by news agencies PTI and ANI, citing government sources]

Read more here.

SEBI fines RIL, Mukesh Ambani for manipulative trades in RPL

The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 25 crore on Reliance Industries Ltd (RIL) and Rs 15 crore on its chairman, Mukesh Ambani, for their alleged role in manipulative trades in Reliance Petroleum Ltd (RPL) in 2007. The penalties imposed pertain to the trading of RPL shares in the cash and futures segments in November 2007. SEBI believes illegal profits were made by RIL and other parties through manipulation of RPL’s share prices. This followed RIL’s decision in March 2007 to sell a 4.1% stake in RPL, a listed subsidiary that was later merged with RIL in 2009.

Read more here.

Tata Steel transfers stake in processing arms to TSDPL

Tata Steel Ltd has transferred the 51% stake it holds in Jamshedpur Continuous Annealing & Processing Company Private Ltd (JCAPCPL) and 50% stake it holds in Tata BlueScope Steel Private Ltd (TBSPL) to Tata Steel Downstream Products Ltd (TSDPL). The company stated that this step was taken to reorganise the company’s India footprint into four clusters to drive scale, synergies, and create value for all stakeholders. The transfer will help consolidate its downstream steel processing services.

Read more here.

EID Parry to close sugar unit in Tamil Nadu

EID Parry India Ltd has decided to close down one of its non-operating sugar units in Tamil Nadu. The company stated that the expectation of revival of cane cultivation in the area is low due to a variety of factors. The company’s sugar mill at Pettavaithalai in Tamil Nadu had not been operational due to the continuous non-availability of adequate sugar cane. East India Distilleries (EID) Parry India Limited is a wholly-owned subsidiary of the Murugappa Group.

Read more here. 

Exports decline by 0.8% in December; trade deficit widens to $15.71 billion

India’s exports declined marginally by 0.8% to $26.89 billion in December 2020 due to contraction in sectors like petroleum, leather, and marine products, according to preliminary data released by the Ministry of Commerce & Industry. The trade deficit in December widened to $15.71 billion, as imports grew by 7.6% to $42.6 billion. During the same period, oil imports declined by 10.37% to $9.61 billion.

Read more here.

Tower damage case: Airtel writes to DoT, says Jio’s charges are baseless

Bharti Airtel has sent a letter to the Department of Telecommunications (DoT), slamming Reliance Jio’s allegations that channel partners of rival telecom companies were inciting and provoking agitators involved in tower disruption. The company stated that Jio’s complaint should be dismissed “with the contempt that it deserves”. Airtel further urged the DoT to bring forth a policy to mandate ICR (Intra circle roaming) in such situations of vandalism and network outages as a matter of course so that customers were never inconvenienced.

Read more here.

Free Covid-19 vaccine for all healthcare workers in first phase: Harsh Vardhan

Union Health Minister Dr. Harsh Vardhan on Saturday said that in the first phase of Covid-19 vaccination, free vaccine shall be provided across the nation to most prioritised beneficiaries that include one crore healthcare and two crore frontline workers. He also said that details of how further 27 crore priority beneficiaries are to be vaccinated until July are being finalised. As India began its nationwide Covid-19 vaccine dry run from today before the rollout of a potential vaccine to the citizens, the health minister appealed to people not to pay heed to rumors about the Covid-19 vaccine.

Read more here.

PFC raises borrowing limit to Rs 1.18 lakh crore

State-owned Power Finance Corporation (PFC) has raised its borrowing limit to Rs 1.18 lakh crore for the ongoing financial year. The company now plans to raise a maximum of Rs 83,000 crore from long-term borrowing, Rs 15,000 crore from long-term foreign currency borrowing, Rs 5,000 crore from short-term borrowing, and Rs 15,000 crore from commercial papers. PFC further stated that it does not see any challenges in raising the borrowing amount, which is being used to lend for various power sector projects in India.

Read more here.

India-UK flights to restart from Jan 6: Puri

Aviation Minister Hardeep Singh Puri on Saturday said that flights from India to the United Kingdom will resume from January 6, while services from that country to here would resume from January 8 onwards. He stated that this schedule is valid till 23 Jan 2021 and further frequency will be determined after reviews. Earlier, India had suspended all passenger flights connecting the two countries from December 23 to January 7, as a new variant of coronavirus emerged in the UK.

Read more here.

TVS reports 17.5% increase in sales in December

TVS Motor Company Ltd, on Saturday, reported a 17.5% YoY increase in total sales to 2,72,084 units in December. The company, which primarily makes two-wheelers and three-wheelers, had sold 2,31,571 units in December 2019. The total two-wheeler sales during the month increased by 20% to 2,58,239 units, as against 2,15,619 in December 2019. The total exports increased by 28% to 94,269 units last month, as against 73,512 in the year-ago period.

Read more here.

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Market News Top 10 News

Reliance Jio Makes All Domestic Voice Calls Free From Jan. 1 – Top Indian Market News

A shopkeeper displays JIO simcards at a mobile phone store in Mumbai on July 19, 2017. Indian oil-to-telecom conglomerate Reliance Industries's first-quarter consolidated profit jumped 28 percent July 20, pumped up by higher margins from its core oil refining business it said, beating analyst estimates. / AFP PHOTO / INDRANIL MUKHERJEE (Photo credit should read INDRANIL MUKHERJEE/AFP via Getty Images)

Reliance Jio to make domestic voice calls free from Jan 1

Reliance Jio announced that all off-net domestic voice calls from its network to other networks anywhere in India will be free from January 1, 2021. This has been done because interconnect usage charges (IUCs) for all domestic voice calls are coming to an end from Friday. In September 2019, telecom regulator TRAI had extended implementation of IUC on mobile-to-mobile calls beyond January 1, 2020, after which Jio began charging its customers for off-net voice calls.

Read more here.

India’s fiscal deficit reaches 135% of budgeted target during April-November

The Union Government’s fiscal deficit soared to Rs 10.75 lakh crore or 135.1% of the 2020-21 Budget Estimates (BE), during April-November 2020. This is mainly on account of the low realisation of revenue due to disruption in business activities amid the Covid-19 pandemic. The government’s total receipts stood at Rs 8.30 lakh crore (37% of BE 2020-21) till the end of November 2020. [Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure] 

Read more here.

Eight core industries’ output contracts 2.6% in November

Contracting for the ninth consecutive month, the output of eight core infrastructure sectors dropped by 2.6% in November. This has been mainly due to a decline in the production of natural gas, refinery products, steel, and cement. The production of eight core sectors had recorded a growth of 0.7% in November 2019, as per data released by the Ministry of Commerce and Industry. The output of crude oil, natural gas, and refinery products declined by (-)4.9%, (-)9.3%, and (-)4.8%, respectively, in November 2020.

Read more here.

L&T Construction wins significant orders in overseas, domestic markets

Larsen & Toubro (L&T) Ltd announced that its construction arm has received orders in the overseas and domestic market. The orders fall under the ‘significant’ category, which ranges between Rs 1,000 crore and Rs 2,500 crore. L&T stated that its power transmission and distribution business has won two transmission line packages in the Kingdom of Saudi Arabia. Its water and effluent treatment business has secured an EPC (engineering, procurement, and construction) order in Gujarat to execute a package in the SAUNI Yojna Link 3. 

Read more here.

Jubilant FoodWorks to acquire 10.76% stake in Barbeque Nation for Rs 92 crore

Jubilant FoodWorks Ltd (JFL), on Thursday, said it will invest Rs 92 crore into Barbeque Nation Hospitality Limited for an equity stake of 10.76%. The company will acquire 36,50,794 fully paid-up equity shares of the face value of Rs 5 per share in the casual dining restaurant chain. The transaction is expected to be completed by January 25.

Read more here.

BHEL receives orders worth Rs 3,200 crore for hydro projects

Bharat Heavy Electricals Ltd (BHEL) has secured orders valued at Rs 3,200 crore for Electro-Mechanical (E&M) works for a Hydro Electric Project (HEP) in Andhra Pradesh and E&M works of pump-motor sets for lift irrigation schemes (LIS) in Telangana. BHEL’s scope of work in the above projects includes design, engineering, manufacturing, supply, and supervision of erection, testing & commissioning of the equipment. The above orders have been received from the EPC contractor for these projects- Megha Engineering & Infrastructure Ltd.

Read more here.

IRCTC launches upgraded version of e-ticketing website and app

Union Railway Minister Piyush Goyal, on Thursday, unveiled a more passenger-friendly and upgraded version of the IRCTC e-ticketing website and mobile application. Passengers will now be able to book tickets, meals, and accommodations at the same time. The website has in-built features for enhancing cybersecurity by using appropriate captchas. Predictive entry suggestions using AI will be given to the passengers when they enter a station. The website will also have simpler checking of the refund status on the user accounts page.

Read more here.

Tejas Networks wins international order worth $13 million

Tejas Networks Ltd has received a purchase order amounting to $13 million (~Rs 94 crore) from a leading telecommunications service provider in South East Asia. As per the contract, Tejas Networks will supply and install its TJ1400 ultra-converged broadband products to extend high-speed broadband services to underserved rural communities in the region. The project is expected to be executed within the next 12 months.

Read more here.

CCI gives nod to Jamnalal Sons to acquire 51% stake in Mukand Sumi Specialty Steel

The Competition Commission of India (CCI) has approved the acquisition of 51% of the equity share capital of Mukand Sumi Special Steel Ltd (MSSSL) by Jamnalal Sons Private Ltd (JSPL). The proposed combination entails the acquisition of 51% of the equity share capital of MSSSL from Mukand Limited and its nominees by JSPL. A nominal number of equity shares of MSSSL (not more than 60), which are being acquired by JSPL, shall be held jointly by JSPL and certain individuals. This is to comply with the minimum shareholding requirements under the Companies Act, 2013.

Glenmark Pharma receives USFDA approval for Tadalafil tablets

Glenmark Pharmaceuticals Ltd has received final approval from the United States Food & Drug Administration (USFDA) for Tadalafil tablets USP. The tablets are indicated for the treatment of erectile dysfunction and enlarged prostate. The approved product is a generic version of Cialis tablets of Eli Lilly and Company. According to IQVIA sales data for the 12 months ending November 2020, Cialis tablets achieved annual sales of approximately $125.5 million (~Rs 913 crore).

Read more here.

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Market News Top 10 News

Protesting Farmers Damage 1,400 Jio Towers in Punjab – Top Indian Market News

Protesting farmers damage more than 1,400 Jio towers in Punjab

Farmers and support groups protesting against the Government’s new farm laws have damaged around 1,450 mobile towers of Reliance Jio in Punjab. More than 176 signal transmitting sites were vandalised in 24 hours on Sunday alone. The mobile and internet services of the company have been disrupted in the state, causing inconvenience to the consumers. The attacks on Jio towers comes amid speculation that the new farm laws allegedly benefit Reliance Industries and Adani Group. Reliance had approached Punjab police regarding alleged vandalism of its towers. The executives of Reliance Jio are also set to meet Punjab state government officials to discuss the matter.

In other news, the Central Government has called a meeting with farmers on December 30 (Wednesday). The government stated that they are committed to finding a logical solution and ending the deadlock.

Read more here.

Coal India plans 21 additional railway sidings

Coal India Ltd (CIL) announced that it is constructing 21 additional sidings at an estimated investment of Rs 3,370 crore across 4 of its subsidiaries. [A siding is a short railway track beside the main tracks, where engines and carriages are left when they are not being used]. CIL stated that it currently has around 152 rail sidings, and the tally would go up to 173 by 2024. These new projects will be commissioned by FY 2023-24.

Read more here.

Tips Industries signs global licensing deal with Facebook

Tips Industries Ltd has announced a global deal with Facebook to license its music for videos and other social experiences across Facebook and Instagram. The users of both social media platforms will be able to add Tips’ music catalog to their posts and stories. The deal comes in the wake of Bollywood music labels (such as T-Series) sending copyright infringement notices to content sharing mobile applications such as Josh and Mitron for using its music without permission.

Read more here.

Dixon Technologies’ subsidiary enters into agreement with Motorola for manufacturing smartphones

Dixon Technologies’ wholly-owned subsidiary, Padget Electronics, entered into an agreement with Motorola Mobility LLC for the manufacturing of smartphones. The products will be manufactured at Padget’s facility situated at Noida, Uttar Pradesh. Padget Electronics is among five domestic manufacturers who have been approved to receive benefits of the government’s production linked incentive (PLI) scheme for smartphones.

Read more here.

Equitas SFB levies penalty on designated persons for violating insider trading norms

Equitas Small Finance Bank announced that its Vice President-Internal Audit, N Ganesan, violated the code of conduct for the prevention of insider trading by selling 1,000 shares during the window closure period. The bank also stated that its Deputy Vice President of Information Security, G Thanikachalam, violated the code of conduct for the prevention of insider trading by selling 1,181 shares during the window closure period. The small finance bank said that its disciplinary action committee had levied a penalty of 10% of the traded value on both parties.

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Adani Group’s container terminal subsidiary raises $300 million via dollar bonds

Adani International Container Terminal Pvt Ltd has raised $300 million (~Rs 2,207 crore) by issuing dollar bonds to international investors. The company’s 10-year bond was priced at par to yield 3%, which is also the lowest coupon achieved by any corporate Indian issuer in the last 5 years. The issue received interest from around 220 accounts and was oversubscribed almost 10 times.

Read more here.

Cadila Health seeks approval to start Phase-3 clinical trials of ZyCoV-D

Cadila Healthcare Ltd announced that its plasmid DNA vaccine to prevent Covid-19, ZyCoV-D, was found to be safe and immunogenic in Phase 1 & 2 clinical trials. The reports of the clinical trials have been submitted to the Central Drugs Standard Control Organisation (CDSCO). The company is now planning to initiate Phase-3 clinical trials in around 30,000 volunteers upon receiving necessary approvals.

Read more here.

Apax to buy software business of 3i Infotech for Rs 1,000 crore

Apax Partners is all set to acquire the software business of IT services company 3i Infotech Ltd for Rs 1,000 crore. The software business, which generates $60 million (~Rs 441 crore) in revenue, will be carved out of 3i Infotech through a business transfer agreement. The deal values the software arm higher than the current market capitalization of the entire company at Rs 908 crore.

Read more here.

Biocon launches Tacrolimus capsules in the US

Biocon Ltd, on Monday, announced that it has launched Tacrolimus capsules in the US. Tacrolimus is an immunosuppressant used for the treatment of organ transplant patients. It reduces the body’s ability to reject a transplanted organ. The biopharmaceutical firm stated that the launch of Tacrolimus capsules is a part of its mission to make affordable healthcare more accessible. 

Read more here.

NTPC declares Dulanga coal mine commercially operational

NTPC Limited announced that its Dulanga coal mine is commercially operational from October 1, 2020. The Central Government has allocated nine coal blocks– Pakri-Barwadih, Chatti-Bariatu & Chatti-Bariatu (South), Kerandari, Dulanga, Talaipalli, Banai, Bhalumuda, Mandakini-B, and Badam– directly to NTPC. The state-owned power giant is planning to produce about 103 million metric tonnes (MMT) of coal per annum from these mines when all the mines reach the peak-rated capacity.

Read more here.

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Cabinet Approves Rs 3,500 crore Sugar Export Subsidy – Top Indian Market News

Cabinet approves Rs 3,500 crore sugar export subsidy

Union Minister Prakash Javadekar announced that the Cabinet Committee on Economic Affairs (CCEA) has approved a Rs 3,500 crore subsidy for sugar farmers. The subsidy will be given on 60 lakh tonnes of sugar exports at the rate of Rs 6,000 per tonne. He stated that 5 crore sugarcane farmers will benefit from this Cabinet decision. The subsidy will be directly transferred to the farmers’ accounts.

In other news, the Cabinet has also approved a project for establishing 2,100 km of additional transmission lines and 36 new Sub Stations in 6 North-Eastern states.

Read more here.

Laxmi Organics files draft papers for Rs 800-crore IPO

Laxmi Organics has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 800 crore as its initial public offering (IPO). The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 300 crore by its promoter, Yellow Stone Trust. Laxmi Organic is a Mumbai-based specialty chemicals manufacturer. The company will utilise the proceeds from the issue for setting up a manufacturing facility for fluorospecialty chemicals, working capital requirements, and purchase of plant and machinery. 

Read more here.

SEBI eases profitability criteria for mutual fund sponsors

The Securities and Exchange Board of India (SEBI) has decided to relax profitability criteria for becoming a mutual fund sponsor. This is to facilitate innovation and expansion in the mutual fund sector. The SEBI board also approved proposals which include dispensing with the requirement to issue physical unit certificates, reducing maximum permissible exit load, and reducing the timeline for payment of dividend.

Read more here.

Jio fastest network in 4G download in November: TRAI

According to the latest data update from telecom regulator TRAI, Reliance Jio has topped the 4G speed chart with a data download rate of 20.8 megabits per second (Mbps) in November. This was followed by Vodafone at 9.8 Mbps and Bharti Airtel at 8 Mbps. Vodafone was ahead of others in upload speed at 6.5 Mbps, during the same month. Jio’s upload speed was recorded at 3.7 Mbps.

Read more here.

Future Enterprises Q2 Results: Net Loss at Rs 320 crore

Future Enterprises Ltd reported a consolidated net loss of Rs 320 crore, for the quarter ended September (Q2). The company had posted a net profit of Rs 21.78 crore in Q2 of the previous financial year. Its revenue from operations declined to Rs 237.88 crore in Q2 FY21, as compared to Rs 1,699.84 crore in the corresponding quarter in FY20. Future Enterprises develops, owns, and leases retail infrastructure for the Future Group.

Read more here.

Ratnamani Metals & Tubes secures order worth Rs 105 crore

Ratnamani Metals & Tubes Ltd (RMTL) has received a domestic order of Rs 105 crore for coated carbon steel pipes from the Oil and Gas sector. The company stated that the order will be executed between May 2021 and September 2021. Gujarat-based RMTL is a leading producer of stainless steel and titanium welded tubes. It also provides total piping solutions to a diverse range of industries.

Read more here.

Cipla launches Covid-19 diagnostic test kit ‘CIPTest’

Cipla Limited has partnered with Premier Medical Corporation Pvt Ltd to launch ‘CIPTest’- a rapid antigen Covid-19 testing kit. While Premier Medical Corp will manufacture the kits, Cipla will be responsible for marketing and distribution. The pharma company stated that the testing kit will be able to generate results in 15-20 minutes.

Read more here.

Jubilant Foodworks launches biryani brand ‘Ekdum!’

Jubilant Foodworks announced the expansion of its portfolio with a new biryani brand- Ekdum! The company stated that Ekdum! will offer 20 different varieties of biryanis curated from different parts of India. In addition to biryanis, customers will also be able to choose from an extensive range of kebabs, curries, desserts, and beverages. Currently, Ekdum! has opened three restaurants in Gurgaon, and has plans to launch more in NCR over the next few months.

Read more here.

Indian Bank declares IL&FS Financial Services account as fraud

State-owned Indian Bank has declared the account of IL&FS Financial Services Ltd (IFIN), as fraud. The bank has fully provided for the non-performing account of IFIN with outstanding dues of Rs 408 crore. The lender has reported the account to the Reserve Bank of India (RBI), as per regulatory requirements. In October, Punjab and Sind Bank had also reported the account of IFIN as fraud, with outstanding dues of over Rs 561 crore. 

Read more here.

Vedanta to raise $8 billion for BPCL bid: Report

According to a report from Livemint, Vedanta Group plans to raise as much as $8 billion (~Rs 58,913 crore) to secure funds for the acquisition of state-run Bharat Petroleum Corp. Ltd (BPCL). It has been reported that Vedanta Resources Plc has already started talks with banks, and discussions with JP Morgan are at an advanced stage. The report states that funds will be raised through a mix of debt and equity instruments, to acquire a 52.98% stake in BPCL.

Read more here.

RBL Bank migrates to Infosys Finacle’s digital banking solution

RBL Bank announced that it will migrate its systems to Infosys Finacle, a digital banking solutions platform developed by EdgeVerve Systems. Finacle’s extensive open API (application programming interface) repository will provide the agility required to seamlessly integrate and co-innovate with ecosystem partners, which is one of the key focus areas for the bank. EdgeVerve Systems is a wholly-owned subsidiary of Infosys Ltd.

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Market News Top 10 News

Jio & Facebook to Accelerate India’s $5 trillion Economy Push – Top Indian Market News

Jio and Facebook to accelerate India’s $5 trillion economy push: Mukesh Ambani

Facebook founder Mark Zuckerberg and Reliance Industries Chairman Mukesh Ambani, on Tuesday, spoke about the partnership between Facebook and Jio- highlighting how each company benefits from the association. They were speaking at the Facebook Fuel for India 2020 event. Opening up on the potential of a technology-enabled ecosystem in propelling the economic growth of India, Ambani said that he sees the country accelerating as a premier digital society. He stated that both Jio and Facebook will work hand-in-hand to make this a reality. The partnership will also focus on digitizing small businesses.

In April 2020, Facebook purchased a 9.9% stake in RIL’s telecom unit Jio for $5.7 billion (Rs 43,574 crore).

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Mrs Bectors IPO subscribed nearly 4 times on Day 1

Mrs Bectors Food Specialties’ initial public offering (IPO) was subscribed nearly 4 times on the first day of the bidding process. The issue received bids for 4.92 crore shares, which was 3.72 times the issue size of 1.32 crore shares. The quota for retail investors was filled in 6.83 times, while that for employees’ quota received 9.46 times bids. The price band of the Rs 541-crore IPO was fixed at Rs 286-288 per equity share.

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M&M subsidiary SsangYong fails to repay loans worth Rs 408 crore

SsangYong Motor Company, the South Korean subsidiary of Mahindra and Mahindra Ltd (M&M), has missed repayment of Rs 480 crore to JP Morgan Chase Bank. The amount was due and payable on 14 December 2020. M&M clarified that the missed loan repayment is part of SsangYong’s outstanding loans aggregating to Rs 680 crore, which will be covered under M&M’s commitments to the subsidiary’s lenders.

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Adani Ports’ joint venture to raise $300 million to retire debt

Adani Ports and Special Economic Zone Ltd (APSEZ) said that its joint venture firm, Adani International Container Terminal Pvt Ltd (AICTPL), will raise $300 million (~Rs 2,207 crore) to retire some of its debt. AICTPL intends to use the funds to repay all of its existing senior debts. Senior debt refers to borrowings that are prioritized for repayment in the case of bankruptcy. Such debts have the highest priority, as compared to other types of borrowings.

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Kalpataru Power secures orders worth Rs 1,300 crore

Kalpataru Power Transmission Ltd announced that it has secured orders worth Rs 1,300 crore in India and overseas. The orders include an engineering, procurement, and construction (EPC) job for pipeline laying and associated works in India. It also includes an order for railway electrification by the Central Organization for Railway Electrification (CORE). The firm also stated that its international subsidiary has secured new T&D (transmission & distribution) projects in Europe.

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Majesco announces interim dividend of Rs 974 per share

Majesco Limited announced that its board has approved payment of an interim dividend of Rs 974 per equity share for the financial year 2020-21. The interim dividend is at the rate of 19,480% of the face value of the company. Majesco’s dividend payment translates to an amount of Rs 2,788.4 crore, on a shareholder base of 2.85 crore shares. The record date for the dividend is December 25.

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Dilip Buildcon receives letter of acceptance from NHAI for Gujarat project

Dilip Buildcon Ltd has received a letter of acceptance (LOA) from the National Highway Authority of India (NHAI) for a hybrid annuity mode project in Gujarat. The project includes four-laning of Dhrol-Bhadra Patiya section of NH-151A and Bhadra Patiya-Pipaliya Section of NH-151A in Gujarat. The cost of the project has been estimated at Rs 880 crore, and it will be completed in 2 years. 

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IDBI Bank opens QIP to raise Rs 6,000 crore

The Qualified Institutions Placement (QIP) committee of IDBI Bank’s Board of Directors has authorised the opening of the bank’s QIP issue on December 15. IDBI Bank plans to raise up to Rs 6,000 crore via the QIP issue. The floor price of the issue has been fixed at Rs 40.63 per equity share.  QIP is a method by which listed companies can raise funds by issuing shares to certain institutions, without going through standard regulatory approvals.

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Mindtree accelerates cloud business through Global Microsoft Azure Experience Center

Mindtree Limited announced the launch of a dedicated Microsoft go-to-market business unit. The unit will be centered on building new solutions based on Microsoft platforms and technologies. The new business unit is a component of Mindtree’s multi-tiered initiative to support the continued demand for cloud services and solutions. It will also expand its Global Azure Experience Center in Washington, to ensure that all technical professionals are proficient and certified on Microsoft Azure technologies.

Cyient signs MoU with Australian firm Decipher

Cyient Limited has signed a Memorandum of Understanding (MoU) with Decipher, an Australian company that provides cloud monitoring and governance platform for tailing storage facilities. Tailings are the mineral waste remaining after ore processing to extract mineral concentrates. It is typically stored within an engineered containment structure known as a tailing storage facility (TSF).

Under the agreement, Cyient will help Decipher with the global rollout of its cloud mining platform for tailings and rehabilitation monitoring. Hyderabad-based Cyient Ltd is an outsourcing company, which is focused on engineering, manufacturing, data analytics, and networks & operations. 

Read more here.

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India’s Retail Inflation Eases to 6.93% in November – Top Indian Market News

India’s retail inflation declines to 6.93% in November

India’s retail inflation, which is measured by the Consumer Price Index (CPI), declined to 6.93% in November. The CPI for the month of October was 7.61%. Vegetable inflation for November came in at 15.63%, oils & fat at 17.86%, and meat & fish at 16.67%. The RBI expects retail inflation to ease to 5.4% in the third quarter and 4.5% in the fourth quarter of FY2021.

India’s inflation based on the wholesale price index (WPI) increased to 1.55% in November, as manufactured products turned costlier. The WPI inflation was 1.48% in October 2020.

Read more here.

Reliance Jio asks TRAI to take strict action against Vi, Bharti Airtel for spreading rumors

Reliance Jio has asked the Telecom Regulatory Authority of India (TRAI) to take strict action against Vodafone Idea (Vi) and Bharti Airtel for resorting to “unethical” ways and spreading “frivolous rumors” that Jio will gain from the Farm Bills. The company stated that retailers in certain cities in Punjab and NCR have seen an increase in customers porting out of Reliance Jio and joining either Vi or Bharti Airtel. This comes on the back of more than 50,000 farmers calling for a national boycott of Reliance products, including Jio Sim cards and phones.

Read more here.

Infosys partners with El Paso Water for customer service transformation

Infosys Ltd has entered into a strategic partnership with El Paso Water to improve the latter’s customer service systems. The IT major will help transform EP Water’s legacy customer information systems (CIS) with Oracle Utilities Customer to Meter (C2M). EP Water stated that this project will help them increase efficiency and customer satisfaction. EP Water is a municipal utility in El Paso, Texas.

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Tata Sons, Air India employees submits expression of interest for struggling airline

As per reports, Tata Sons, US-based Interups Inc, and a consortium of Air India employees have placed an expression of interest (EoI) for the national carrier (Air India). Air India’s employee group, which consists of 219 members, submitted a bid to purchase 51% of the loss-making state-owned carrier. Today is the last day for submission of expression of interest. According to the latest government notification, the qualified institutional bidders (if any) will be invited to start bidding for the airline from December 28.

Burger King India’s share debut becomes biggest since 2017

The shares of Burger King India Ltd surged 131% on its first day of trading, making it one of the biggest share debuts since Aston Paper & Board Ltd in 2017. The company’s stock began trading at Rs 115, which was a 92.25% premium against its issue price of Rs 60. With restaurants reopening and vaccines on the way, investors are betting that Indians will be thronging fast-food chains.

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Schindler partners with L&T Tech for digital & engineering transformation

L&T Technology Services (LTTS) said that it has been selected by Schindler as one of its key partners to provide innovative digital engineering capabilities. LTTS will provide product development, innovation, and engineering solutions that will help Schindler to accelerate its digitization and connectivity initiatives. The Schindler Group is a Swiss multinational company that manufactures escalators, moving walkways, and elevators.

Read more here.

Delta Corp receives approval for resort in Goa

Delta Corp Limited has received in-principle approval from the Goa Investment Promotion and Facilitation Board for setting up an integrated resort. The company stated that its new resort in Pernem (Goa) will consist of hotels, convention centres, multiplex cinema halls, a retail area, an electronic casino, a water park, and other facilities. Delta Corp is the only listed company engaged in the casino (live, electronic, and online) gaming industry in India.

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L&T Construction secures contracts worth up to Rs 2,500 crore

Larsen & Toubro Ltd’s construction arm said that it has secured contracts in the range of Rs 1,000 crore- Rs 2,500 crore for its various businesses. The orders were secured from clients for two of L&T Construction’s businesses: Building & Factories (B&F) Business and Power Transmission & Distribution Business. The company has also secured a design & build order from a reputed client to construct a multi-specialty hospital at Nagpur.

Read more here.

Ramco Systems bags multi-million dollar orders from foreign companies

Ramco Systems Ltd announced that its various businesses have signed multi-million dollar agreements with multiple companies based in Europe, Asia, and America. However, the company did not disclose the value of the orders. Ramco Aviation, Aerospace & Defense signed an agreement with a leading European MRO (Maintenance, Repair & Overhaul) to digitally transform their business. Ramco ERP has signed an agreement with Agrifields DMCC for providing modules for inventory, procurement, production, and maintenance for its operations in the Philippines.

Read more here.

KEC International secures orders worth Rs 1,438 crore

KEC International Ltd announced that it has secured orders worth Rs 1,438 crore across its various businesses. The company’s railways business has secured orders worth Rs 475 crore in the urban infrastructure segment in India. KEC’s civil business has secured orders of Rs 383 crore for infra works from reputed private players in the chemical and cement segments. The cables business has secured orders of Rs 218 crore for various types of cabling projects in India and overseas.

Read more here.

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Market News Top 10 News

Reliance Jio to Launch 5G Services in India by Second Half of 2021 – Top Indian Market News

Reliance Jio to launch 5G services in India by second half of 2021: Mukesh Ambani

RIL chief Mukesh Ambani, on Tuesday, said that Reliance Jio will pioneer the 5G revolution in India by the second half of 2021. He was speaking at the fourth edition of the India Mobile Congress. The solution for the fifth-generation wireless service will be built indigenously, said the RIL chairman. Ambani further said that India requires policy developments for the early implementation of 5G services.

Read more here.

ICICI Bank to sell 2.21% equity stake in ICICI Securities via OFS

ICICI Bank said that it will be selling up to 71.21 lakh shares (2.21% equity) in ICICI Securities through an offer for sale (OFS). An OFS is a method by which a promoter of a listed company sell their shares and reduce their holdings. The floor price of the OFS has been set at Rs 440 per share. The lender stated that this move is to meet the minimum public shareholding (MPS) norm.

Read more here.

Godrej Properties acquires 18-acre land in Bengaluru to build housing project

Godrej Properties Ltd has bought an 18-acre land parcel in Bengaluru to develop a housing project. The project will offer 2.4 million square feet of saleable area, comprising primarily residential apartments. The site, located in Whitefield, offers a well-developed social and civic infrastructure with multiple schools, hospitals, and commercial spaces in close proximity.

Read more here.

Canara Bank sets floor price of Rs 103.50 per share for QIP

Canara Bank Ltd has set a floor price of Rs 103.50 per share for its proposed Rs 2,000 crore qualified institutional placement (QIP). A QIP allows a listed company to raise capital from domestic markets without the need to submit any pre-issue filings to market regulators. A meeting of the sub-committee of Canara Bank’s board is scheduled to be held on December 10. At the meeting, the board will determine the issue price for the equity shares, as well as the number of shares to be allotted to the qualified institutional buyers.

Read more here.

Passenger vehicle retail sales rise 4% in November on festive demand: FADA

The Federation of Automobile Dealers Association (FADA) said that passenger vehicle retail sales saw an increase of 4.17% YoY in November. The number of units sold in November increased to 2,91,001, as compared to 2,79,365 units in November 2019. FADA stated that there had been a rise in vehicle registrations over the Diwali-Dhanteras period. However, two-wheeler sales declined 21.4% YoY to 14.13 lakh units during the same month.

Read more here.

Indoco Remedies wins tenders worth Rs 140 crore in Germany for Allopurinol tablets

Indoco Remedies Ltd said that it has won tenders worth Rs 140 crore in Germany, for the supply of Allopurinol tablets. The tablets are used to treat gout and kidney stones. The drug firm has stated that the revenue expected from this business is Rs 70 crore per annum. The supplies to Germany will begin from January 2021 and continue till the end of 2022.

Read more here.

TVS Srichakra to invest Rs 1,000 crore to expand manufacturing capacity

TVS Srichakra Ltd will invest around Rs 1,000 crore to ramp up manufacturing at its Madurai and Pantnagar plants. The investment will increase its two and three-wheeler tyre capacity by 25%-30% and double the off-highway tyre capacity. The proposed investment will be made over a three-year period. The company stated that this expansion programme is aimed at meeting the growing demand across its customer base- both domestically and globally.

Read more here.

Mindspace REIT to raise Rs 200 crore via debentures

Mindspace Business Parks REIT said it will raise up to Rs 200 crore through the issuance of debentures on a private placement basis. The decision was taken at an executive committee meeting of K Raheja Corp Investment Managers LLP, which is the manager of Mindspace REIT. Mindspace Business Parks is India’s second Real Estate Investment Trust (REIT), after Embassy Office Parks. 

Read more here.

Cupid wins order to supply Covid-19 Antigen Based Rapid Test Kits

Cupid Ltd has received a purchase order from Uttar Pradesh Medical Supplies Corporation for the supply of Covid-19 Antigen Based Rapid Test Kits. The estimated value of the order has been set at Rs 8.27 crore. This is the company’s first order to supply its specialised test kits.

Read more here.

NBCC bagged orders worth Rs 325 crore in November

NBCC (India) Ltd said that it secured a total business of Rs 324.81 crore in November 2020. The construction services company is a Government of India Navaratna enterprise. The firm operates through 3 segments- project management consultancy (PMC), real estate development, and engineering, procurement & construction (EPC).

Read more here.

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Editorial

Reliance NextGen: Who after Mukesh Ambani?

Reliance has turned into an empire within a span of a few decades. Mukesh Ambani, the Chairman of Reliance Industries, is now the world’s 6th richest man. At the age of 63, he has taken Reliance to the heights one can only dream of. The oil-to-telecom company has a strong grip in several sectors, thus becoming a very important entity from the nation’s perspective. That is why the question of who after Mukesh Ambani is important.

Mukesh Ambani will be hoping that his family has a shared vision for Reliance’s future. Thus, learning from the lessons he learnt from the rivalry with his brother after the death of their father, Dhirubhai Ambani at the age of 69 years. He will be hoping that nothing of that sort happens in his family. To make this happen, it is important for him to process a seamless transition of Reliance into the new hands. Before that, let’s have a look at the family of this Indian business tycoon and try to understand the possible heirs of his business.

Mukesh and Nita Ambani have three kids. Anant Ambani (25) is the youngest of three children. Akash Ambani (29) and Isha Ambani (29) are the older twins who were born in 1991. All three children are working at Reliance in senior posts. Probably, Mukesh Ambani will be passing the baton to them as he prepares Reliance for the NextGen.

Ambani Family | marketfeed

Isha Ambani and Reliance Retail

Isha received her undergraduate degree in Psychology and South Asian studies from the prestigious Yale University. She went on to do her MBA from Stanford University. She also has experience working at McKinsey & Company in New York before joining Reliance. 

Isha joined the family’s telecom and retail businesses as a director in 2014. As per the rumours, she is the one who gave her father the idea to launch Reliance Jio in 2016 after facing problems with slow internet speed. It is widely believed that she has been a central figure for the latest developments in the Jio and Reliance Retail segment over the past two years.

She was one of the lead negotiators in the deal through which Facebook acquired a 9.99% stake in Jio for Rs 43,574 crore. Along with her brother, Akash Ambani, she flew to the US in December last year for the negotiations. The trust in Isha’s leadership can be seen from the fact that it was she and not her father who announced Reliance Retail’s deal with Future Retail. She is likely to lead Reliance Retail in the future.

Akash Ambani and Reliance Jio

After completing his schooling in India, Akash went to the US to get his undergraduate degree in Economics. Just like Isha, Akash also joined his father’s company in 2014. Currently, he is the Director and Head of Strategy and a member of the Executive Committee at Reliance Jio.

Akash played a key role in completing Jio’s recent mega-deals with big tech companies like Google, Qualcomm and Intel. He is more involved in the digital services applications side of Reliance Jio and Reliance Retail. Apart from business, Akash has a keen interest in sports. This can be seen by his huge involvement in the Indian Premier League (IPL) and Indian Super League (ISL).

Reliance’s 43rd AGM showed how the two twins were launching the new Jio products. This tells that the future of tech-related Reliance adventures will be in the hands of these youngsters. Recently, Isha and Akash Ambani debuted in the technology list of Fortune’s ‘40 Under 40’ list of influential people around the globe.

Anant Ambani and Petrochemicals

Anant is the youngest of the three siblings. He followed his elder brother Akash and went to Brown University in the US to pursue his graduation. He made headlines after losing 108 kg in 18 months. 

Anant Ambani currently serves as an Additional Director on the board of Jio. More of his contribution has come in social and foundational work at the Jamnagar refinery. He was the one to represent the Ambanis when they handed over Rs 5 crore towards Maharashtra flood relief work. After taking care of his health in recent years, Anant might now be pushed to work at significant roles at Reliance, just like her other two siblings.

Interestingly, Reliance’s annual report 2019-20 consists of pictures of all three siblings in the Reliance Retail and Reliance Jio domain but the Refining & Marketing (R&M) and Petrochemicals segments consist only of Anant’s image. This might be due to the involvement of the youngest one in the core business of Reliance, which is oil & gas.

At the Reliance at 40 years celebration, Anant Ambani also presented himself as one who deeply loves the environment. We can’t help but wonder if Anant Ambani is the force behind Reliance’s shifting to renewable energy from Petrochemicals. You can read all about it here.

Reliance and India’s Future

The Indian business tycoon, Mukesh Ambani, has huge faith that his children will be taking Reliance even higher. Trusting and bestowing responsibility to the youth in their 20s shows that the power decisions of Reliance will be taken by the Ambanis in the future as well. These NextGen stars are well aware of the changing environment of the world. They are expected to come up with more innovative ideas and execute them with more efficiency to maintain the legacy of Reliance in future years.

Reliance Industries is at a crossroads. They are venturing rapidly into different sectors. Also, they are planning to expand massively in the technology segment. Another domain where Reliance will move is into the renewable energy sector. These changes will be led by the three children of Mukesh and Nita Ambani. Will they be able to match the legacy of their father? Can they take the Reliance brand to even higher highs? It has also been made clear that Reliance will be playing an important role in the growth of the Indian economy, as well. Can these three youngsters handle the pressure of running the business and taking up the country’s economy? All to be seen!

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Editorial Editorial of the Day

Why did Reliance Fall? In-Depth Q2 Results Analysis

Probably, the most eagerly awaited results came out late on Friday night. Mukesh Ambani led Reliance Industries reported a 15.05% year-on-year (YoY) drop in consolidated net profit at Rs 9,567 crore. This number was at Rs 11,262 crore for the corresponding quarter last year. The consolidated revenue from operations also fell by 24% to Rs 1,16,000 crore from Rs 1,53,000 crore reported a year ago.

Mukesh Ambani, Chairman and Managing Director of RIL, said: “We delivered strong overall operational and financial performance compared to the previous quarter with recovery in petrochemicals and retail segment and sustained growth in the digital services business. Domestic demand has sharply recovered across our O2C business and is now near the pre-Covid level for most products.”

Let’s have a deeper look at each segment.

Refining & Marketing (R&M)

Economic activity in the R&M segment was highly impacted by Covid-19. EBITDA fell by 50% YoY and 21% QoQ to Rs 3,002 crore. This was because the Gross refining margins (GRM) fell to $5.7/bbl from $9.4/bbl from the same quarter last year. (GRM refers to the earning on turning every barrel of crude oil into fuel.)

[Source: Quarterly Presentation] (Global oil demand growth)

Due to the easing of lockdown & preference for personal travel rising, demand for refined oil products like jet fuel saw an increase. The company is positive that the demand for fuels like gasoline and jet fuels will further increase in the third quarter. Even with lower margins, Reliance was able to outperform in the Asia Pacific and European refining margins in the challenging business environment. But with negative global sentiments in the oil market which leads to low GRM, the company might struggle in the longer run.

Reliance Jio

The telecom arm of Reliance reported another dominant result. Their market share in India’s mobile market reached 35.03%. Reliance Jio declared a 13% quarter-on-quarter (QoQ) and 185% year-on-year (YoY) rise in net profit. EBITDA rose by 8.7% QoQ to reach at Rs 7,971 crore.

Amidst the pandemic, Jio became the first mobile service provider to cross the 40-crore customer mark in India. According to the Telecom Regulatory Authority of India (TRAI), Jio added over 35 lakh subscribers which helped it cross the 40 crore mark. As of September 30, 2020, their total customer base stood at 40.56 crores which 1.8% higher than the previous quarter. Their total wireless traffic also grew by 1.5% and amassed to 1,442 crore GB.

ARPU or Average Revenue per User is an important metric for telecom companies. It helps them to get an idea of how much they are earning from a customer on an average. Jio’s ARPU touched Rs 145 per month this quarter. Last quarter, this metric was at Rs 140 per month. Also, there has been a constant uptrend in Jio’s ARPU from the past four quarters.

Q2FY20Q3FY20Q4FY20Q1FY21Q2FY21
120128130.6140.3145
(Jio’s ARPU in rupees over the quarters)

Without a doubt, Reliance Jio has been a constant driver for RIL as a whole. Thus, it tells how Reliance wants to position itself as a tech player in the future.

Reliance Retail

The retail segment of the company rebounded sharply in the second quarter after a huge slump in Q1 due to lockdown. Revenue from operations rose by 30% QoQ to reach at Rs 36,566 crore. Last quarter was marred by the shutdown of retail shops and fears of people venturing out of their home.

In Q1FY20, Reliance Retail reported an EBITDA of Rs 1,079 crores. This quarter, EBITDA has increased by a whopping 86% to Rs 2,006 crores. When compared to last year, the operating profit of the segment fell by 14% as normalcy is yet to be achieved during these COVID times. With easing restrictions, Reliance Retail was able to operate 85% of its stores. 

A huge jump in the revenue was noticed in the consumer electronics products. Revenue increased by 2X over the last quarter. The apparel segment of Reliance Retail also registered amazing growth. Revenue from Fashion & Lifestyle was almost at 3X over the previous quarter.

“Increased footfall and store openings have contributed to the rebound in retail revenues, with 85% of stores now open,” V. Srikanth, the joint chief financial officer of RIL. 

Apart from the results, RIL has seen some huge investments in their retail arm. Around 8% of the stake has been sold to prominent global investors like Silver Lake, General Atlantic, KKR, Mubadala and a few more. The total investment is amassed to Rs 37,710 crore. At the same time, Reliance Retail has acquired companies like Netmeds, Grab, Nowfloats, C-Square and Shopsense (Fynd).

Petrochemical

The petrochemical segment experienced a resurgence in the second quarter. EBITDA reported a rise of 35% QoQ to Rs 5,964. This is still significantly below than Rs 8,964 crore what the company recorded in the same quarter last year.

The overall increase in household spending helped the company to record a 17.8% growth in the total revenue. Q2’s segment revenue stood at Rs 29,665 crore as compared to Q1’s Rs 25,192 crore.

The sequential rise can be attributed to an increase in demand in the agriculture, auto and FMCG sector. The lockdown forced many labours to lose their jobs. This raised the presence of labours in the market, thus, driving the wages expectations lower. It helped the Indian textile industry to get cheaper labour and cut their cost of production.

To sum up

The company showed a strong rebound in its performance when compared to the previous quarter. Yet, it was below what they produced in the same quarter previous year. But that was expected due to Covid-19, right?

Reliance Jio performed better than what the market estimated. Reliance Retail also contributed to give a positive outlook to the market. Petrochemicals displayed a robust fight to give good numbers. But two of the core segments of the company, refining & marketing and oil & gas (upstream), have struggled for another quarter. Main reason? Lockdowns all over the world due to Covid-19.

On one hand, Covid-19 has raised the demand of digitalization which has aided the Jio segment. On the other side, the core business of Reliance, oil & gas continues to struggle. Reliance owns the largest refinery in the world in Jamnagar. It was their oil & gas business which helped them become what it is today. This quarter, the EBITDA through the oil & gas sector (upstream segment) was reported to be – Rs 194 crore. This is way below than Rs 128 crore EBITDA recorded in the same quarter previous year. This has led to some serious concerns on the oil & gas segment of Reliance.

A few days back, Mukesh Ambani displayed his desire to spearhead India’s fight towards renewable energy. How often have you heard a company dealing with crude oil talking about a move to renewable energy at such a massive scale? Mukesh Ambani insisted that shifting towards renewable energy does not mean leaving the oil & gas business completely. But, is it so easy to make such a large shift? You can read more about this here. 

Halloween Horror Show! Why Did Reliance Fall?

Halloween is celebrated each year on October 31. Seems like it came on 2nd November for Reliance. You can find how the market performed today here. Reliance’s share price fell by a massive 8.69% to close at Rs 1876. This fall of Rs 178.50 in one day took Reliance on their lowest share price in the past three months. What were the reasons behind such a fall that eroded more than Rs 1 lakh crore of market capitalization?

We can understand three possible reasons behind this. Firstly, negative sentiments due to holding off of Reliance-Future Retail deal. The big bull Amazon has insisted that the deal between the two cannot go ahead as it violates Future’s commitment towards them. Read about this war here. The deal with Future group has huge importance for Reliance to take the next step in the retail segment. If this deal collapses, the speed of growth for Reliance Retail in that sector will be hugely affected.

Secondly, unsatisfactory results. Reliance’s oil business is really struggling due to COVID-19. Demand for oil is struggling to revive. Yesterday, the UK government announced that the second wave of infections has been increasing rapidly. To contain the spread, the UK government has declared another four-week lockdown. Before them, Spain and France have also announced lockdowns in their country. With an increase in cases worldwide and no vaccine as of now, the oil & gas companies may find themselves in a very bad situation once again. 

Thirdly, profit booking kicking in. Reliance has been on a relentless upside rally from the past 7 months. With every major announcement of investment, Reliance has gone up rapidly. But this pattern stopped in the previous month when major investments in the Retail segment failed to boost up the price. Thus, there might be a feeling among the investors that Reliance won’t be going up so easily now.

With a subdued performance in a few segments this quarter, people might have just booked their profits rather than hoping that Mukesh Ambani can turn around again. Also, Rs 2,000, being a round number, was a very solid support for investors. As soon as the stock went below it, many stop losses would have been triggered which created a panic among the shareholders to sell the stock. 

There are also rumours floating around about Ambani’s health. While this has not been verified, stock prices may crash further if this is verified. It will be very interesting to see where Reliance goes from here. Any negative news will be forcing another big fall in its share price. But can Mukesh Ambani do his magic again?