Companies and Markets

Companies & Markets

Tata Comm may buy Tele’s enterprise biz

Tata Communications on Thursday said it will explore the possibility of acquiring the enterprise business of Tata group firm, Tata Teleservices.

This follows Bharti Airtel announcing that the consumer mobile business of (CMB) of Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML)’s will merge with it on a cash-free, debt-free deal.

"Tata Communications proposes to engage in exploratory discussions with TTSL and TTML regarding the potential acquisition of its enterprise business,” Tata Communications said in a regulatory filing.

Kumar mangalam may tap markets amid telecom shakeout

Billionaire Kumar Mangalam Birla, whose Idea Cellular is poised to become India’s top carrier, sees only a handful of businesses surviving a price war roiling the world’s second largest telecom market.

The chairman of the Aditya Birla Group also won’t hazard a guess on when the industry shakeout will end in a country where calls already cost less than two cents a minute — and are sometimes offered free.

“The telecom sector is undergoing a very turbulent and difficult phase,” Birla said in an interview this week. “Probably the fittest three will survive.”

Retail inflation remains steady in September, hopes for rate cut bleak

India’s annual consumer price inflation remained steady in September from the previous month, but hopes of a rate cut by the Reserve Bank of India remain bleak as it expects higher inflation in coming months.​​​​
India’s annual consumer inflation (CPI) in September rose to 3.28 percent from a year earlier, government data showed on Thursday.

Analysts polled by Reuters had expected September’s CPI inflation rate would edge up to 3.60 percent from August’s downwardly revised 3.28 percent.

Ola gets $1.1b funding; along with Uber, faces Meru hurdle

In order to continue its aggressive growth in the taxi market, Ola has raised $1.1 billion in its latest round of funding from Tencent Holdings and Softbank. It is also in the process of raising another $1 billion.

The latest round of funding in Ola was led by Tencent, a leading internet company in China, and was participated by existing investor Softbank. With additional funding coming in, the total funding in the current round would be over $2 billion. But despite the latest round of funding, things are not exactly hunky dory both for Ola and its rival Uber in India.

Weak recovery likely in September quarter

Performance of the banking & financial service (BFS) sector is likely to remain under stress in 2QFY18, led by: (a) higher provisioning for ageing of existing NPAs; (b) sharp decline in profitability from treasury operations; (c) muted growth in core operating income; and (d) weaker system-level credit growth.

However, the banks/ NBFCs with relatively higher exposure to retail and MSME segments will continue to deliver strong numbers.

Country has to go slow on Basel III, IFRS

The first challenge is to fully implement Basel III regulation by March 2019, but it needs huge capital infusion. The report seeks extension of the deadline beyond March 2019 as suggested by the government to extend help to banks to meet the capital needs.

Dhoot Transmission, US firm in JV

Dhoot Transmission, the auto components manufacturer, has forayed into the electro-mechanical and electronic switches for the two and three-wheeler industry through an equal JV with the US-based a Carling Technologies, with an initial investment of Rs 65 crore for a 1-million unit factory.

The Aurangabad-based firm, which is also in the final stage of acquiring a wiring harnessing firm in Europe this fiscal with ticket size of Rs 100 crore, is also eying to increase its overseas sales to 25 per cent from the present 18 per cent.

Airtel answers Jio with Karbonn 4G phone

Bharti Airtel has tied-up with Karbonn Mobiles to bring bundled 4G smartphone at an "effective price" of Rs 1,399, a move aimed at taking on rival Reliance Jio ahead of the festive season.

This is the first of multiple partnerships India’s la­rgest telecom firm is lining up with mobile handset-makers to bring such bundled 4G smartphone options to the market, Airtel said on Wednesday. Shares of Bharti Airtel jumped 5.04 per cent to Rs 403.40 on the BSE after the announcement. Du­ring the day, the stock soared 5.97 per cent to Rs 407.

Rupee may weaken on higher US rates: Mizuho Bank

Rupee, the worst-performing currency in Asia last month, is likely to weaken further as higher US interest rates boost the dollar, according to Mizuho Bank.

“Some rupee slippage looks unavoidable in the coming months as dollar bulls take charge,” said Singapore-based Vishnu Varathan, head of economics and strategy at Mizuho, the third most-accurate rupee forecaster in Bloomberg’s quarterly rankings. While his year-end rupee forecast is 65.8 per dollar, the currency could potentially drop past 66 during the quarter before finding an initial support at 67, he said.