Tougher Times Ahead, Says RBI – D Subbarao, RBI Governor, today said that the next financial year could be a more difficult year. This is the first statement from the central bank indicating a tougher future. IMF has revised its forecast for the growing economies reflecting that India would be doing its own numbers in its policy estimates in January. RBI also said that it would not interfere with any decisions of the central or the state governments to relax the timeline or agenda of the Fiscal Responsibility & Budget Management (FRBM) Bill to put state finances in order.
Future Group Announces Price Cuts As Opposed To FMCG Companies – Future group announced that it will cut prices of private labels across all product categories as opposed to the decision of other FMCG companies, including Hindustan Lever (HUL) and Marico to hold prices eve n after governments decision to cut excise duty to stimulate demand in the economy. The central govt. announced 4% cut in cenvat on Sunday, expecting the companies to pass on the benefit to the consumers. The Future group has already cut prices of utensils, plasticware, and synthetic textiles after the sharp drop in prices of raw material inputs like metals, chemicals, and crude oil among others.
Multinational Cement Makers in the Race to Acquire ACL – A number of international cement makers including Lafarge, CRH Plc and Italcementi are in the race to acquire Andhra cements (ACL), the south based company of the GP Goenka Group. The could also witness Goenka Group selling their entire 73% holding that they had acquired 14 years ago. The deal will also include a follow on 20% open offer for ACL share holders.
Amas Bank Acquires 40% Stake In Chennai Broking Firm – Amas bank, owned by the Hinduja Group has acquired 40 per cent stake in Patco Investments and Consultancy Services, a Chennai-based broking firm, for an undisclosed amount. The acquisition is a part of the bank’s strategy to expand its presence in the Indian capital market. The acquisition would also help the lender to build access to onshore wealth management and corporate advisory services.
HCL to Close Axon Acquisition on Monday – HCL Technologies, India’s fifth largest IT company will complete its £441-million acquisition of Axon Group on December 15. With this deal, HCL will become one of the largest SAP mplementation companies in the world and the contribution of expertise application services in HCL technologies is expected to go up from its current 11% to about 30%. Infosys, the second largest IT company in India, was also in the race to acquire Axon group and had made a cash offer of £407.1 million for the same but it was outbid by HCL Technologies.
Bajaj Holdings Buys Additional 5% Stake in Group Company Finserv – Bajaj Holdings and Investment (formerly Bajaj Auto) has bough an additional 5% stake in the group company Bajaj finserv, through creeping acquisition route through two lots in the past two months. These open market purchases have led to an increase in the total promoter holding in the group’s financial services arm to 55% of the equity capital. The creeping acquisition is expected to bring down the public holding in Bajaj Finserv, which offers services like life insurance, general insurance and consumer finance.
GCPL Acquires Godrej SCA Through Remaining 50% Stake Buyout – Godrej Consumer Products (GCPL) has bought the remaining 50% stake in Godrej SCA Hygiene (GSH) from SCA Hygiene products (of Sweden), its joint venture partner. Post the acquisition, the JV that owns the ‘Snuggy’ brand of baby diapers will become a 100% GCPL subsidiary. GCPL stock closed at Rs 120.25 on the BSE on Wednesday, marginally down 1% from its previous close. Reports suggest that SCA Hygiene Products moved out of its JV owing to the challenging business scenario in Sweden. The Godrej group sees a high growth potential in the segment.
Leave Your Comment
9 years ago
The Reserve Bank of India (RBI) said on Monday the balance of risks on the...
3 years ago
The Reserve Bank of India (RBI) on Tuesday held interest rates steady to guard...
3 years ago
India is likely to see deficient monsoon this year raising the spectre of...