A round-up of the biggest articles from newspapers.
iPhone-maker Wistron to make other products
The main maker of iPhones in the country, the Taiwanese major Wistron, is planning to manufacture other products in India, reports Business Standard.
Why it’s important: It’s partnering with Delhi-based Optiemus Electronics to manufacture mobile devices, IT hardware, and possibly electric vehicles.
Optiemus is getting sops under the production-linked incentive scheme.
This will give impetus to Wistron to make mass-priced products for global customers.
Govt ready accept demands of Air India employees before privatisation
To speed up the process of privatisation, the government is ready to accept some of the main demands of Air India employees, reports Business Standard.
Why it’s important: The Centre has agreed to accept the cost of liquidation loss on account of transfer to EPFO as well as encashment of leaves.
They are already to accept the inclusion of employees in CGHS too.
This will be the model for other PSU sell-off plans later.
Centre likely to allow FDI in LIC
The government is planning to permit foreign direct investment in LIC to augment the process of privatisation, reports Business Standard.
Why it’s important: The move will help foreign investors to buy stakes in the insurer.
This will also enable strategic investors like pension funds or insurance firms to take part in LIC IPO.
It is roughly estimated that the listing could value LIC at as much as $ 261 billion.
‘Focus on balance-sheet management is a core philosophy for Tata Steel’
Koushik Chatterjee, executive director and chief financial officer of Tata Steel, in an interview with Business Standard said that global steel margins will continue to sustain in the near future.
What he says: Tata Steel is leveraging the global trading conditions and cost take-out plans to boost competitiveness.
The company has a deep and integrated scenario-based approach to plan for emerging situations.
The focus on balance-sheet management is a core philosophy for Tata Steel.
In 2021, Tata Steel improved the credit and balance-sheet metrics sharply.
Tata Steel has a robust organic growth pipeline in India, which will be cost-competitive and value-accretive.
‘Foreign reinsurers are gaining speed in the Indian market’
Munich Re India CEO Hitesh Kotak, in an interview with Business Standard said a reinsurer is the last end of the chain in the insurance business.
What the CEO says: There is no room for the reinsurer to pass on the risk and should be clear of the dynamics of the risk.
Foreign reinsurers are gaining speed in the Indian market.
Crop is an important part of the company’s business and invested a huge talent into this business, including agro scientists, specialists from the India Meteorological Department, and actuaries.
‘We have now become somewhat cautious about Indian markets’
Anil Sarin, chief investment officer of Centrum PMS, in an interview with Business Standard said the company has become more cautious in the Indian market because of the large number of IPOs that are sucking out liquidity.
What the CIO says: The markets are likely to remain choppy till 2021-end.
The central banks across the world are now more sensitive to market conditions.
The volatility is on the rise in the global markets that would affect investor sentiment.
We have now become somewhat cautious, given the frequency and size of IPOs that are sucking out liquidity.
We remain bullish on a stock-by-stock basis.
RBI puts new digital payment platforms on hold
The RBI has put its plans on hold to permit new firms to set up digital payment platforms in the country for the time being, reports Mint.
Why it’s important: The move is due to the worries of data safety concerns involving foreign entities.
RBI wanted to end the National Payments Council of India’s dominance in online transactions.
Amazon, Google, Facebook and the Tata group, are eyeing the segment.
Jeh Wadia exits Bombay Burmah, Britannia boards
Nusli Wadia’s younger son Jehangir Wadia has exited the boards of Britannia Industries Ltd and Bombay Burmah Trading Corp., reports Mint.
Why the decision: The reason is unknown for the exit for once considered as Nusli Wadia’s successor though sources say it is connected to differences with father.
The 48-year-old has also stepped down from responsibilities at all listed businesses of the $ 15 billion Wadia Group.
Jeh Wadia also quit Go Air and Bombay Dyeing in March.
Logistics firms will be out of new e-com rules
The government is planning to keep out logistics suppliers to e-commerce companies as “related parties” in the new e-commerce rules, reports Mint.
Why it’s important: This has been a major demand of retailers.
The main reason cited by retail entities is that a ‘related party’ may not have any online business at all.
So, coming under e-com platform will be another burden for them.
NIIF plans to invest in L&T’s Hyderabad Metro
National Investment and Infrastructure Fund is in talks with L&T to invest up to Rs 4,000 crore in Hyderabad Metro, reports The Economic Times.
Why it’s important: L&T wants to focus on its core engineering activities and deleverage the balance sheet.
The venture is loss-making for L&T.
The project is suffering from cost and time overruns.
The lockdowns hit the company badly.
NIIF may form a consortium for the investment plan.L&T is also looking for a Rs 5,000 crore soft loan from the Telangana government.
