Online retailer eBay is planning to close the sale of its India unit to Flipkart. The deal involves the US-based ecommerce firm investing $500 million for a minority stake in the Indian company.

The deal will give buyers on its platform access to Indian inventory and global sellers access to the growing base of buyers in India that shop online, eBay said.

Scott Schenkel, CFO at eBay, said: “We believe our $500 million investment along with the contribution of our eBay India business, significantly improves our competitive position in a strategically important market.”

eBay’s sale of its India unit to Flipkart was part of a $1.4 billion investment round in the Indian company by Tencent, Microsoft and eBay ($500 million). While eBay will retain a stake in the Indian market with its stake in Flipkart, the local company will get a foothold in the customer-to-customer online retail market where Amazon is aiming for leadership through Junglee.

India Investment Journal’ has in-depth coverage on related topics.

Indian engineering conglomerate Larsen and Toubro (L&T) has announced a partnership with South Korea’s Hanwha Techwin to manufacture self-propelled battle guns for the Indian Army.

Both sides signed a contract for the execution of at least 100 ‘K-9 Vajra’ 155mm/52-calibre tracked self-propelled howitzers, nearly 10 years after the first request-for-proposal was floated in 2007. The latest move comes after the Indian government’s Cabinet Committee on Security (CCS), headed by Prime Minister Narendra Modi, cleared the multi-million-dollar proposal.

"L&T plans to begin production of this vital weapon system at its strategic systems complex at Talegaon near Pune. L&T has initiated the setting up of a greenfield manufacturing line at Hazira, Gujarat, to produce, test and qualify the K9 Vajra-T guns," said Jayant Patil, Head of Defence and Aerospace and Member of the Heavy Engineering Board, L&T, told reporters.

Under the present arrangement with Hanwha Techwin, 50 per cent of the gun will be indigenised in India.

India Investment Journal’ has in-depth coverage on related topics.

India is set to overtake Germany to rank fourth globally by 2022, pushing the UK down to sixth place, according to the International Monetary Fund (IMF).

Britain is set to drop out of the world’s five largest economies based on gross domestic product in nominal terms, according to IMF assessment this week.

The slide in Britain’s relative size comes as the nation sets out to redefine its trading relationship with the rest of the world after Brexit.

The rankings also highlight India’s rapid rise, with the economy expanding 9.9 per cent per year. By contrast, the IMF projects the UK will grow just 2 per cent this year and 1.8 per cent in 2018, impeded in part by “the negative effects of the UK’s decision to leave the European Union”.

India will not have to surrender its fastest growing major economy tag to China in the near future as it is expected to record a slightly higher growth rate than its bigger neighbour for the previous year despite a slowdown due to demonetisation.

'India Global Business’ has in-depth coverage on related topics.

German auto parts’ maker Bosch expects to invest around $156 million (Rs 1,000 crore) on a yearly basis for the next few years on plant and machinery.

This investment is aimed at covering the company’s transition from BS-IV to BS-VI emission standards and the production of some of the mechanical products will be reduced as part of the transition.

The government has announced its plans to skip BS-V norms and has asked the industry to comply with BS-VI emission norms by 2020.

Bosch Ltd Managing Director Soumitra Bhattacharya said: “The advancement of emission norms would, however, require Bosch to have higher-than-expected investment and higher import content from its parent, which could increase its cost thereby impacting the margins.”

The company will hire 3,000 employees for its engineering operations across India as part of its technology development at its Bengaluru centre, its biggest engineering facility outside parent country Germany.

India Investment Journal’ has in-depth coverage on related topics.

The Indian government has cleared the way for Indian companies to merge with companies overseas with the prior approval of the Reserve Bank of India (RBI).

Indian companies will now be able to merge into foreign companies based in Mauritius, the Netherlands, Singapore, UK, US, Abu Dhabi, DIFC (Dubai) and UAE. India’s Corporate Affairs Ministry (MCA) has passed the necessary executive orders under the new Companies Act 2013 to bring this into effect from April 13.

While explicitly allowing Indian companies to merge with companies abroad, the Ministry of Corporate Affairs has also reaffirmed the existing legal position of allowing foreign companies to merge with Indian firms here through a scheme of arrangement (inbound mergers).

The erstwhile Companies Act 1956 had no specific provision allowing Indian companies to go for outbound mergers. Only inbound mergers (foreign companies merging into Indian companies) were allowed under this law, which was replaced by the new Companies Act 2013.

India Global Business’ has in-depth coverage on related topics.

Tata Steel is seeking out opportunities in the South East Asian market, given the strong export prices for the region.

Tata Steel MD T.V. Narendran said on the sidelines of the India Steel Expo: "We are looking at higher exports in the current year as the South East Asian market is growing quite well and there is no reason why we should not participate in that.”

The company said it expects a lot of investment to drive growth in the steel sector and the growth of India's steel industry will be a great opportunity for the capital equipment market across the world.

Narendran said this made it feasible for investors them to invest in India.

The Indian steel giant also bagged the Prime Minister’s Trohpy for the best performing integrated steel plant. The PM’s trophy recognises companies that display outstanding performance in a vital sector of the Indian economy, which draws heavily on national resources of capital and skilled manpower.

Narendran said: “Tata Steel has always focused on operational excellence and delivering value to all its stakeholders.”

India Global Business’ has in-depth coverage on related topics.

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