Smaller cities and towns with less than half-a-million population recorded 1.6 times growth in sales of air-conditioners and 1.2 times in refrigerators between March and May as against last year, according to recent data from market research firm GfK India. Overall AC sales surged 29% and refrigerator sales were up 13% from a year ago during this period. Sales of air-conditioners and refrigerators scaled to a five-year high this summer due to soaring mercury and easy finance seem to have set the sale of white goods on the boil in these markets this summer.
Hyundai is planning to drive in a Rs 10-lakh electric car in India, and will spend over Rs 2,000 crore to develop the vehicle that will be manufactured at its Chennai factory. The car could be a mini SUV, though different body types such as a premium hatchback, are also being considered. It will also be exported across Middle East, Latin America, Africa and Asia. The company recently launched its global electric vehicle Kona SUV in India, but this has been priced upwards of Rs 25 lakh.
The government in the last five years has deregistered over 14,800 NGOs which were registered under the Foreign Contribution Regulation Act (FCRA) and had been receiving funds from abroad. The registrations were cancelled because the NGOs committed violations of the provisions of the FCRA. Rs 16,894.37 crore foreign contribution has been received by various NGOs in 2017-18, Rs 15,343.15 crore foreign contribution was received by them in 2016-17 and Rs 17,803.21 crore in 2015-16.
The government may impose a provisional anti-dumping duty of up to $199 per tonne on imports of aluminium and zinc coated flat products from China, Vietnam and Korea, according to a notification of the commerce ministry. The duty was recommended by the Directorate General of Trade Remedies (DGTR) after conducting a thorough probe, following a complaint from JSW Steel Coated Products Ltd. Aluminium and zinc coated flat products are used in infrastructure projects, solar power plants, roofing, and white goods.
Amid rising trade tensions, American importers of sports goods, toys, stationery, cables and electronics parts have reached out to Indian sellers of these goods as Chinese products have become expensive due to the US-China trade war. The US is looking to replace Chinese exports with Indian products in at least seven product lines including vulcanised rubber, footwear and kitchen accessories. India exported these items worth $1.5 billion in FY19 to the US, and the industry is keen to ramp up capacity to meet the potential demand.
Total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crore in the 2018-19 fiscal on the back of steps taken by the government, Finance Minister Nirmala Sitharaman said. The government has instituted a comprehensive 4R's strategy for recognition of non-performing assets (NPAs) transparently, resolution and recovery of value from stressed assets, recapitalising of public sector banks (PSBs) and reforms in PSBs so as to reduce their bad loans, Sitharaman said.
India’s overseas borrowing is set to rise to a record this year as the government joins Indian Inc to take advantage of declining interest rates globally. Offshore borrowing costs for Indian companies have reduced dramatically this year, on the basis of both yield and spread. Companies have raised $21.64 billion through foreign currency bonds and loans so far this calendar year. Among the corporate borrowers are Reliance Industries, Reliance Jio Infocomm, Adani Ports and SEZ, Vedanta Resources and Shiram Transport Finance.
Half a dozen companies are likely to hit the primary market in the next month or so to raise about Rs 10,000 crore through IPOs. Only eight companies issued IPOs in the first six months of 2019, raising as much as Rs 5,509 crore. Sterling and Wilson Solar, ASK Investment Managers, Spandana Spoorthy Financial, Affle India, AGS Transact Technologies and Mazagon Dock Shipbuilders among other companies planning IPOs by the middle of August.
Stressed wind turbine maker Suzlon Energy said it has failed to make the payment of principal amount of the outstanding Bonds, to the tune of $ 172 million, which was due on Tuesday. Suzlon has told bondholders that they will have to wait until banks accept its proposed one-time settlement plan.
Lenders to India's Dewan Housing Finance (DHFL) are ready to accept limited haircuts in a restructuring plan being worked out for the troubled firm, sources said. The country's fourth largest housing finance company, which warned on Saturday that its financial situation was grim and business had ground to a halt, met lenders and other debt holders last week to discuss the outline of a rescue package.
The eastern region, led by West Bengal, appears to be driving the growth of microfinance in India. Small loans expanded 7-19% faster than the broader industry average in West Bengal, Bihar, Odisha, and Assam between FY16 and FY19, SIDBI-Equifax data showed. These four states account for about 40% of the total MFI loan book. The portfolio stood at Rs 178,547 crore at the end of FY19. The average ticket size of MFI loans stood at Rs 31,623 in FY19.
RBI data shows Indians are spending more on overseas travel and education as spending rose more than 60% year-on-year this May. Expenses on overseas travel under the Liberalised Remittances Scheme (LRS) rose 56% to $568 million in May y-o-y, while spends on education and maintenance of close relatives rose 88% to $334 million and 21% to $ 300 million respectively. These three outgo heads accounted for 80% of $1.5-billion outflows under the LRS. Under this scheme, resident Indians are allowed to spend up to $250,000 a year overseas for a certain permissible current account and capital account expenditure.
IL&FS Engineering and Construction said one of its joint statutory auditors BSR Associates resigned on Sunday with immediate effect. The debt-laden company said the auditor cited reasons such as non-payment of fees for the year ended March 31, 2018 and non-receipt of certain pending information and responses to the audit matters as requested for the audit for the year ended March, 2019, limited reviews for the quarter ended 30,2018 and December, 2018 and responses to queries raised by it.
Cox and Kings defaulted on a Rs 45 crore commercial paper and interest payment on a non-convertible debentures to the tune of Rs. 41,09,589. On Tuesday, its shares fell 4.77% to a record low of Rs 19.95. This was the fourth default by the travel and tour business in last one month. Last week, Cox & Kings defaulted on commercial paper worth Rs 125 crore, a third default of the company in the past fortnight, totaling Rs 325 crore.
About a month after PwC resigned as auditor for Reliance Capital and Reliance Home Finance, the ministry of corporate affairs (MCA) has begun investigation into alleged diversion of funds and suspicious transactions between the two firms and other group companies. The MCA will start questioning the management and the audit committees of both the Reliance group companies. The investigators would also question the current auditor of the companies Pathak HD & Associates.