1. Wipro Bags Over $1.5 Billion Deal From Alight Solutions
Wipro Ltd has won its largest information technology (IT) outsourcing contract, valued at $1.6 billion over 10 years from Alight Solutions LLC, the former benefits administration and human-resources outsourcing business of Aon Plc. Starting next year, Wipro is assured of at least $150 million in annual revenue, a shot in the arm for Abidali Neemuchwala, who since taking over as chief executive officer in February 2016 has been trying to put Wipro back on the growth path.
Mint first reported about the mega deal (more than $1 billion) win by Wipro in its edition dated 23 July, when the two companies were in final stages of closing the deal.
“For now, Wipro and Alight are in final stages of closing this partnership, and the duration of the contract could be extended beyond seven years, depending on the final negotiations currently underway between the two firms,” the Mint report said.
(Source: Livemint)
2. SC Construction Ban in MP, Maharashtra, Uttarakhand ‘Will Ruin Real Estate Recovery’
The Supreme Court ban on all construction activities in Maharashtra, Madhya Pradesh, Uttarakhand and Union Territory of Chandigarh will increase property prices and adversely affect infrastructure development at a time when the real estate sector is already reeling from its worst slowdown since 2008.
A bench, led by Justice Madan Lokur, on Friday announced the ban citing the failure of these States and the UT to implement a solid waste management policy. The ban may have dimmed hopes of a revival for the sector.
“The ban has the effect of bringing an entire industry to a standstill. Nearly a thousand industries are interlinked with construction and real estate. While the ruling will have far-reaching economic and social impact, any cessation of housing supply will lead to an escalation of property prices, hurting the government’s target of Housing for All,” Liases Foras MD Pankaj Kapoor told BusinessLine.
(Source: The Hindu Business Line)
3. As Rupee Slides, SBI Sees One More Rate Hike
Continued rupee depreciation and the significant costs of Reserve Bank of India intervention in the forex market could result in at least one more rate hike, possibly front-loaded, according to State Bank of India’s research report ‘EcoWrap’.
The RBI had raised the policy repo rate (the rate at which it provides funding to banks to overcome short-term liquidity mismatches) twice, by 25 basis points each, in the June (second bi-monthly monetary policy review) and August (third) bi-monthly monetary policy review to 6.50 percent.
“The RBI’s successive rate hikes will have a heavy toll on private consumption expenditure. During FY14 three successive rate hikes led to a collapse of private consumption expenditure to 2 percent in Q3 FY15,” said Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India.
(Source: The Hindu Business Line)
4. Vedanta To Be Among World’s Largest Resource Companies, Says New CEO
Vedanta Resources Plc’s new Chief Executive Officer Srinivasan Venkatakrishnan believes the oil-to-aluminum group can turn into one of the world’s largest resource companies by expanding outside India without compromising on growth within the country.
Venkatakrishnan, a mining executive, took over as the chief executive officer of Vedanta Resources on 31 August, replacing Tom Albanese, the former head of Rio Tinto.
The 53-year-old, who worked for 18 years at AngloGold, one of the world’s biggest gold producers, with a five-year stint as the company’s CEO, wants to build the company into a giant producer of commodities that India needs to curb its reliance on imports, create jobs and reduce poverty.
(Source: BloombergQuint)
5. Now, Exams For Those Looking To Become Independent Directors
The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, said Union Minister of State for Corporate Affairs PP Chaudhary.
While there are stringent provisions under the Companies Act, 2013, to ensure good governance standards, the roles of independent directors has come under the scanner in certain instances of corporate misdeeds.
Also, the role of independent directors is more vital at a time when the government is making efforts to make its role minimal in the affairs of corporates.
Asserting that the government is committed to improve the fabric of corporate governance in the country, Chaudhary said strengthening the role of independent directors in the affairs of companies is a step in that direction.
(Source: BloombergQuint)
6. HPCL Plans to Invest ₹1,000 Crore for LPG Cavern in Mangaluru
State-run oil marketing company Hindustan Petroleum Corp. Ltd (HPCL) is planning to build an underground liquefied petroleum gas (LPG) storage facility in Mangaluru, said a top company executive. “We are reviewing the proposal and seriously thinking of setting up a facility. An announcement will be made soon,” said M.K. Surana, chairman and managing director at HPCL.
It may set up the facility with France’s Total SA, or may venture alone, added Surana. The cavern, will be second such facility in India, to be set up at about ₹ 1,000 crore. Total SA and HPCL both have an LPG import facility in Mangaluru.
HPCL and Total SA, through their joint venture, South Asia LPG (SALPG), operate a 60,000-tonne capacity underground LPG storage facility in Visakhapatnam, in Andhra Pradesh. The facility was commissioned in 2007 at an investment of ₹ 333 crore. The Mangaluru facility may have a capacity of over 60,000 tonne.
(Source: Livemint)
7. Emaar to Partner with Indian Firms to Monetize Land Bank
Sitting on a huge land bank of 4,500 acres across India, Dubai-based Emaar Properties is looking for partners to develop some of the land parcels that it does not intend to construct.
Emaar India’s new CEO Prashant Gupta said the company has also chalked out plan to launch 7-8 projects in 2019 calendar year, even as its current focus is to complete 10,000 pending units by end of the next year at a cost of about Rs 1,000 crore.
“We have a land bank of 4,500 acres across India. We will not sell land as we are not allowed to do so as per the FDI law. We will go for partnership for land parcels which we dont want to develop,” he told PTI. Gupta said the company will provide the land to its joint venture partners, who would develop projects on their own brand. “These projects will not be developed under Emaar brand. No co-branding as well,” he said, adding that the company would just share revenue with its partners.
(Source: Livemint)
8. India Inc’s Foreign Borrowing Rises 74% to $2.18 Billion in July
India Inc raised USD 2.18 billion from overseas markets in July through external commercial borrowing, up 74 per cent from a year ago, RBI data showed. In July 2017, the companies raised USD 1.89 billion by tapping foreign markets. Of the total borrowings (ECB), USD 1.75 billion was raised through automatic route and rest from approval route of the ECB.
Reliance Jio Infocom was the only company to have raised over USD 1 billion via the approval route. Among the major borrowers in the automatic route included JSW Steel USD 165 million for modernisation project, Dewan Housing Finance Corporation USD 240 million for refinancing of earlier ECB and GE Diesel Locomotive USD 121 million for refinancing of rupee loan.
Prodair Air Products India Ltd USD 72.28 million for new project and BMW India Financial Services USD 48.68 million for the purpose of on lending. No money was raised through the way of Rupee denominated bonds (RDB) during the month, showed the data.
(Source: The Financial Express)
9. India’s Coal Imports Rise 12% to 79 Mt
India’s coal imports rose 11.9 percent to 78.7 million tonnes in the first four months of the current fiscal.
The country had imported 70.3 million tonnes (MT) coal in the April-July period of last fiscal, according to mjunction services, a joint venture between Tata Steel and SAIL.
“Overall, coal and coke imports during the first 4 months (April-July) of 2018-19 stood at 78.79 MT, about 12 percent higher than 70.33 MT recorded for the same period last year,” it said. The country’s coal import in July increased by 42 percent to 20.79 MT (provisional), over 14.64 MT (revised) in the same month previous year.
The increase in coal and coke imports in July is mainly due to a 12.9 percent growth in non-coking coal shipments.
(Source: The Hindu Business Line)
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