A round-up of the biggest articles from newspapers.
Tata Group said to be in talks with Microsoft for digital venture
The Tata Group has held talks with Microsoft to bring it on board as an anchor investor in its new digital platform, The Economic Times reported.
Why it’s important: The conglomerate is keen to rope in one or two strategic investors and launch a full-blown fundraising drive.
Group insiders said Tata Sons Chairman N Chandrasekaran is keen to replicate the Reliance Jio playbook, which saw it raise $ 20 billion from investors last year, with social media giant Facebook and tech firm Google acting as strategic equity partners for the telco.
The discussions with Microsoft may, however, not lead to a transaction.
Beyond Grocery, Grofers to deliver anything in 10 minutes
Grofers repositions itself as a quick-commerce platform to deliver anything a consumer might need in 10 minutes, The Economic Times reported.
Why it’s important: The firm has four months back pivoted to 10 minutes grocery delivery, is going beyond selling grocery.
This can include anything like a phone charger, stationery, over-the-counter medicines and others.
It’s backed by SoftBank and Zomato.
Grofers on Monday rebranded itself as Blinkit.
The platform is aiming to hit an annual gross merchandise value run rate of $ 1 billion by March.
Founder Albinder Dhindsa said: “When we moved to the 10-minute space, the thing we realised is that it is about quick commerce and not category-specific.”
Banks seek more time for borrowers to meet norms
Banks have approached the RBI seeking time till March 2023 for borrowers to meet the financial parameters prescribed for loans, The Economic Times reported.
Why it’s important: These loans were restructured under the Kamath committee’s framework for Covid-related stress.
Lenders have argued that the restructuring of accounts is still underway.
Therefore, borrowers may not be able to meet the financial threshold prescribed by even the extended October 2022 deadline.
If borrowers miss the deadline, the accounts will turn into bad loans which lenders want to avoid.
Banks have cited a slower-than-expected recovery in some sectors, as well as the uncertainty caused by the new Omicron variant.
RBI may let the rupee slide further
The Reserve Bank of India may let the rupee slide further against the US dollar, The Economic Times reported.
Why it’s important: A weaker currency could help exports with the government pushing manufacturing with special incentives.
A weaker currency also means improvement in the central bank’s finances.
The local currency is likely to touch the 76.30/50-level by the end of December if the US Federal Reserve accelerates the unwinding of bond purchases.
The likely widening of the negative interest rate would add further pressure on the currency.
Consumers feel the inflation pinch, cut down on purchases
Rising prices of everything from computers to cooking oils are reshaping how Indians consume goods, Mint reported.
Why it’s important: The country’s poor and middle-income households are opting for smaller packs and postponing purchases of costly items such as electronics and appliances, several companies said.
The main reasons for the price hike are the cost of manufacturing and transporting goods has risen sharply.
This is amid disruptions in global supply chains and a surge in fuel prices even as demand for goods and services increases as the pandemic ebbs.
As a result, many companies are selling smaller packs or cheaper versions of products to soften the blow.
Prices of some raw materials are at a 40-year high.
‘See multiple growth triggers for tyre industry’
Onkar S Kanwar, chairman, Apollo Tyres, in an interview with Business Standard said that the domestic tyre industry will have multiple growth triggers in the years to come.
What he says: The most notable will be the government’s flagship infrastructure project.
The movement of goods and people via road increases significantly. And, this is certainly beneficial for the growth of the tyre industry.
The relentless commodity inflation is the biggest pain point.
Seeing revival in the truck side original equipment manufacturers, which is positive.
The share of high margins in passenger car sales mix has increased now to much over 30 per cent.
The current focus is on ramping up the Andhra facility, which along with Chennai and Hungary units, is servicing the demands of all geographies.
‘India much more attractive than any other emerging market’
Ritu Arora, CEO and chief information officer, Asia, Allianz Investment Management-Singapore, in an interview with Business Standard said that the long-term trajectory of the Indian markets remains intact.
What the CEO says: High-quality equity investments are the best asset class to allocate long-term growth capital.
The constituents of Indian benchmark indices are industry-leading large-caps with robust business models.
The country is in the middle of a compelling multiyear investment cycle and good investment opportunities should not be missed.
India is a uniquely attractive investment destination, much more attractive than any other EM.
The inflation-growth dynamic is evolving.
