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News Roundup: Vishal Retail To Sell Stake, Fidelity To Sell Tech Arm

15 December, 2008

Vishal Retail To Sell Stake – Vishal Retail, the country’s second largest listed retailer, is evaluating several options to raise capital to sustain the company’s current operations and planned expansion. One possibility could be a strategic alliance with another retailer or a business house with interests in retail, it is learnt. Those in the race inclucde top corporates, retailers and large PE funds. In October Vishal had obtained shareholder’s approval to raise Rs 250 crore through further issue of securities.

Fidelity To Sell Tech Arm – Fidelity Investments, the global financial services behemoth, has put its captive technology solutions unit on the block. The possible suitors include large Indian IT majors like Infosys, Wipro, Satyam and transnational peers like Accenture and IBM. The successful bidder will acquire the company’s employees and facilities located in Bangalore and Chennai through an upfront cash transaction, but will also walk away with a committed multi-year outsourcing contract from Fidelity. The development follows Citigroup and insurance giant Aviva off-loading their captive back-office operations in India.

GHCL Eyes Italian Buy – The home retail arm of Sanjay Dalmia’s GHCL is eyeing an Italian home furnishing brand and is likely to sign up the deal in the next three to five months. GHCL has earlier acquired Rosebys (UK) and Dan River (US). Meanwhile, Rosebys UK is facing tough times due to negative market conditions. The company is now planning to revive a chunk of its 320-odd stores through the franchisee model.

Bajaj Ups Stake in Austrian Firm – Bajaj Auto Ltd has increased its stake in Austrian sports bike maker KTM to 25%, and is planning to increase it further. Bajaj had last year announced acquisition of 14.5% stake in the Austrian firm for about Rs 300 crore. It was further increased to 20.9% earlier this year.

Assocham Asks Govt To Raise FDI In Defence To 49% – Industry body Assocham has asked the government to raise the foreign direct investment (FDI) cap in the defence sector to 49% for enabling indigenisation and the transfer of latest technology. Presently the FDI limit in this sector is 26%. India is the world’s largest importer of defence equipment.

Cable industry to protest against Govt.’s decision to raise FDI for DTH service providers – Government’s decision to raise FDI (Foreign Direct Investment) limit for DTH (Direct To Home) service providers to 74% from the existing 49%, without doing the same for the cable operators is being strongly opposed by the cable operators. The cable industry, which reaches India’s 80 million homes out of its 130 million T.V owing homes is set to protest against the govt.’s decision.

Hit by Slowdown, Hoteliers Seek Tax Exemptions – The hospitality industry is now seeking a bailout package from the govt. as it ha been hit by the economic slowdown. Though the FHRAI (Federation of Hotels and Restaurants Association of India) has not appealed for any financial assistance, it has requested the govt. for certain tax exemptions including exemption from the luxury tax and value-added tax (VAT) for the next two years.

Snowberry to Invest $50million in India By 2010 – Snowberry USA (SUI) an American ice cream retailer, plans toinvest $50 million  by 2010 to start its business in India. It will enter India through a franchisee, which will be called Snowberry India Pvt. Ltd. Snowberry intends to have 50 outlets in Delhi and NCR by March 2009. The company expects to generate a business of $25,000 million a day, from each outlet within 6 months of its opening.

Bangalore Ranks no.1 in PwC’s Apac Realty Chart – In a report prepared by Pricewaterhouse Coopers and Urban Land Institute, Bangalore and New Delhi’s rankings as the investment and property development destinations in 2009 have improved while Mumbai still holds on to its previous position. Bangalore has been ranked No.1 on development prospects and No.4 on investments prospects among Asia Pacific cities  in 2009 from 13th position in 2008.

PNB to Hire 2,000 People in 4 Months Time – Punjab national bank plans tohire 2000 additional employees in the next four months. The bank would be looking for people with specific skills and will be recruiting for the credit, treasury, corporate communication and marketing departments. PNB also announced that it will hire 377 managers and officers to support its expansion plans.

Yamaha Motors Appoints New CEO – Yamaha motors, India has put his Manufacturing head Y Tsuji, as the new CEO in place of Tsutomu Mabuchi. The CEO has been replaced in hope of turning its losses around. Yamaha motors today has less than 3% share in the motorcycle market while it held 25% share in it during the 1990’s. Company spokesman, however, refused to comment on the new CEO, saying he has not received any official communication to this effect.

 

 


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News Roundup: Vishal Retail To Sell Stake, Fidelity To Sell Tech Arm

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