Here’s a look at this week’s top 10 Indian business news.
- 1 Air India finally receives the Dreamliner and sells 50% stake in business making Rs. 40-45 crore
- 2 Tech Mahindra acquires Hutchison Global Service for $87.1 million
- 3 Gold prices surpass Rs. 32,000 for first time ever
- 4 Levi’s trimming India operations amidst sluggish economic environment
- 5 Axis Bank launches Happy Ending Home Loan
- 6 Reliance Cement Company (RCC) commences production at first plant in Butibori
- 7 Jindal Steel and Power Ltd buys CIC Energy for $115 million
- 8 Mallya gives Rs. 5,904 crore guarantee and reassurance as auditors widen Kingfisher Airlines’ losses
- 9 Renault India launches Scala sedan at Rs. 6.99 lakh
- 10 Investors gain Rs. 84,000 crore as Sensex surges 337 points on Friday
Air India finally receives the Dreamliner and sells 50% stake in business making Rs. 40-45 crore
After a long wait fuelled by disputes and compensation settlements, Air India finally got delivery of its first Boeing 787 Dreamliner aircraft. "I am sure Air India and their customers will be thrilled to experience the revolutionary features on the 787, an airplane that will be the key focus of the airline’s turnaround plan," said Dinesh Keskar, Sr VP Asia Pacific, Boeing.
Meanwhile, the cash strapped government airline let go of 50% stake in an aircraft ground handling business that generated yearly profits in excess of Rs. 40 crore, reported TOI.
Tech Mahindra acquires Hutchison Global Service for $87.1 million
Earlier during the week Tech Mahindra announced its acquisition of Hutchison Global Services (HGS) in a deal worth more than Rs. 480 crore. By making the $87.1 million deal, Tech Mahindra has secured revenues in excess of $845 million over the next 5 years in form of clients’ commitments to procure services from HGS.
"This acquisition is in line with our growth plans and is a logical next step in extending our relationship with Hutchison. We are committed to this opportunity and excited about the possibilities this acquisition opens up" said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, in a news release.
Gold prices surpass Rs. 32,000 for first time ever
Gold prices surged beyond Rs. 32,000 for the first time as the price of 10 grams increased by Rs. 320 to Rs. 32,300 in Delhi-NCR.
Dhanteras, marriage season and an uncertain global economic environment are believed to be the reasons behind this spurt.
Levi’s trimming India operations amidst sluggish economic environment
Levi Strauss & Co is trimming down its operations in India by restructuring, cutting down jobs and closing non-performing outlets. "Like all retailers, we continually evaluate our store portfolio to ensure we have the right stores in the right locations and to best serve the needs of our consumers. This is a routine part of doing business." said a spokesperson, reported TOI.
Axis Bank launches Happy Ending Home Loan
Axis Bank has launched Happy Ending Home Loan, a product that will see the last 12 months of EMI waived off if customers remain loyal and free of default. The EMI waiver is given in 20 year loans if customers complete at least 15 years of regular payments.
Borrowers should not have been in default for more than 90 days during the tenure of the loan. For a Rs. 50 lakh loan, the EMI waiver will approximately be worth Rs. 6.2 lakh explained Jairam Sridharan, Head of Consumer and Lending Payments, Axis Bank, to NDTV Profit.
Reliance Cement Company (RCC) commences production at first plant in Butibori
"Commissioning of Butibori unit is a landmark event in the cement industry, marking the entry of one of the largest business groups of India into the sector. Reliance’s foray in cement industry is a natural extension of its interests in power and infrastructure businesses. Reliance Cement aspires to be amongst the top five cement companies in India in the next 5 years." said Sumit Banerjee, Vice Chairman of Reliance Cement as the company announced the commencement of RCC’s plant in Butibori, Nagpur. Upon commencement RCC is executing two projects of 5 million tonnes each.
Jindal Steel and Power Ltd buys CIC Energy for $115 million
Jindal Steel and Power Ltd (JSPL) has acquired Canada’s CIC Energy for $115 million.
"This will enable JSPL in becoming a more self-reliant and fuel secure enterprise" said Sushil Maroo, Director and CFO, JSPL, reported Moneycontrol.com.
The over Rs. 600 crore acquisition will give JSPL access to CIC’s Mmamabula Coalfields which are a source of thermal coal, used mainly for power generation.
Mallya gives Rs. 5,904 crore guarantee and reassurance as auditors widen Kingfisher Airlines’ losses
Chairman Vijay Mallya has reassured shareholders in a note stating that recapitalization and phased recovery will be KFA’s focus in FY 2012-13. ET also reported that Dr. Mallya has given guarantees exceeding Rs. 5,900 crore and has had to forgo commissions for the same.
Meanwhile, auditors raised Kingfisher Airlines’ losses from Rs. 2,328 crore, reported for FY ending 31 March 2012, to Rs. 3,444 crore.
Renault India launches Scala sedan at Rs. 6.99 lakh
Renault India has unveiled Scala, its latest sedan with ex-showroom prices starting from Rs. 6.99 lakh. There will be petrol and diesel variants of the sedan which is expected to compete with Nissan’s Sunny.
The company hopes to nearly triple its overall sales to 1 lakh units annually in 2013. "Scala will consolidate what Renault has brought to India. It will enter a very competitive segment. With the launch of this car, we are completing the first cycle of introducing five products in India" said Marc Nassif, MD, Renault India, reported The Hindu.
Investors gain Rs. 84,000 crore as Sensex surges 337 points on Friday
The markets closed the week on a high as Sensex surged nearly 2% by 337 points to 17,683.73. Friday witnessed the biggest daily gain for the index in over 2 months after a 439 point uptick on 29 June 2012.
Strong global cues and the European Central Bank’s announcement of a bond buying plan to pump life back into ailing European economies, are said to have driven the surge.