WHAT HAPPENED LAST WEEKSectors at a glance

16th December – 22nd December 2018

What is inside this week’s newsletter?

Chemical And Paints - Payal Jhawar and Sukriti HatgaonkarThe ONGC Board has approved a buyback of worth ?4022 crore

Banking - Sarthak KrishnaIncrease of 25% in corporate loan book of Kotak Mahindra Bank

Real Estate, Infrastructure & Cement -Arpit Daga & Akshit Batra

No relief on cement under GST Council tax rate cuts

Pharmaceuticals -Dixit SambyalAurobindo gets approval for Potassium Chloride pills in US

IT & Telecom - Gaurav PatoleWipro acquired Australian based firm, Syfte

Metals & Mining - Siddharth Toshniwal

Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels

Auto & Aviation - Chirag GoyalMahindra announced to launch XUV300 in compact SUV segment

FMCG - Shruti KajariaITC Pilots the Rice market with ‘Sona Masoori’

Consumer Durables - Prateek SinghalGST Council cuts rates on TVs, movie tickets; cement, ACs left untouched

Auto Ancillary - Suraj MGST Council likely to slash tax rates on automobile tyres to 18%

Textiles & Retail - Anoop Krishnan KUnion Minister for Textiles, said that the ministry has been striving hard for providing a conducivepolicy environment, to facilitate setting up of newer units through newer initiatives and schemes

NBFC - Aashpreet Giddey

BSE received Sebi's permission to increase trading hours by an hour in the commodity derivatives segment w.e.f December 31, 2018

Ports And Logistics - Snigdha BaidyaTop level organisational changes at Delhivery

What is inside this week’s newsletter?

Tata Motors to deploy 500 EVs in partnership with Zoomcar

Mahindra announced to launch XUV300 in compact SUV segment

Tata Motors, in partnership with Zoomcar, announced the launch of the first batch of Tigor EV.As part of this partnership, the two companies plan to deploy 500 electric vehicles in 20 Indiancities next year. Tata Tigor EV is now available on the self-drive rental platform offered byZoomcar. Last year, Zoomcar also deployed Mahindra's e2O plus in Mysore, Hyderabad andBangalore. Tata and Mahindra are currently the only companies producing electric cars in India.The two companies won part of the 10,000-unit tender for electric vehicles launched by EESL in2017.Tata Motors to deploy 500 EVs in partnership with Zoomcar

Mahindra and Mahindra, the country's third-largest automaker, have announced their nextproduct, the XUV 300, which will be included in the fast-growing and highly competitivecompact SUV segment. This product has been developed from the beginning taking into accountthe characteristics of the XUV 500. The XUV 300 will be manufactured at the company’s NashikPlant. At its launch, Mahindra plans to sell at least 5,000 units of the car every month. This willbe the third new product Mahindra brings to the market during this fiscal.Mahindra announced to launch XUV300 in compact SUV segment

AUTO & AVIATION

By Chirag Goyal

Powertrain (drivetrain): The combination of the engine, transmission, driveshaft, differential and axles that deliver power to the wheels.

Ashok Leyland to offer mobility solutions to global OEMs

Ashok Leyland, the flagship of Hinduja, is in advanced talks with a select few defence players(OEMs) in the United States and Europe to offer a wide range of cost-effective mobilitysolutions. The company, which has been the largest provider of mobility / logistics solutions tothe Indian military for more than three decades, sees tremendous opportunities, not only inIndia but overseas as well, given the wide offerings as well cost advantage it holds among peers.Ashok Leyland is the only player in India with experience in the design, development andmanufacture of logistics vehicles, combat support HMVs, the 350 HP Neptune Engine, andarmoured vehicles for defence forces.Ashok Leyland to offer mobility solutions to global OEMs

AUTO & AVIATION

By Chirag Goyal

Brake Caliper: The hydraulic assembly that contains the brake pads and applies them against the brake rotor to slow or stop the car.

No relief on cement under GST Council tax rate cuts

GOI sets target for installing 175 GW of renewable energy capacity by 2022

The GST council on Saturday cut tax rates on 17 goods and 6 services. The rate cuts will hit theexchequer by Rs. 5500 crore on annual basis and Rs. 1375 crore in the remaining three monthsof the current FY. However, the council did not slash tax on cement which was anticipated to bereduced from the current tax rate of 28%. The council stated that the tax cut on cement will hitthe exchequer by approximately Rs. 130 billion. Lowering the tax rate for cement is the targetand rate rationalization is an ongoing process. The tax rate slash on cement will be done whenaffordability improves.No relief on cement under GST Council tax rate cuts

High tariffs and costly infrastructure in 2018 has mulled government to increase the share ofgreen energy in 2019 to combat climate change. According to MNRE, a renewable energycapacity of 73.5 GW had been installed till October 31, 2018. The government has set a target ofinstalling 175 GW of renewable energy capacity by 2022. This will comprise of 60 GW from wind,100 GW from solar, 10 GW from biomass and 5GW from hydropower.GOI sets target for installing 175 GW of renewable energy capacity by 2022

MNRE – Ministry of New and Renewable Energy,. It is headed by R.K Singh , a Minister of State-In Charge

REAL ESTATE,

INFRASTRUCTURE &

CEMENT

By Arpit Daga &

Akshit Batra

Form 83: A Form 483, is issued by the USFDA to notify a company's

management of any objectionable condition in its manufacturing facility. The form is issued after

completing the inspection.

Aurobindo gets approval for Potassium Chloride pills in US

No USFDA observations for Biocon’s Telangana Plant

Aurobindo Pharma Ltd has got the US Food and Drug Administration approval to manufactureand market Potassium Chloride tablets in US market. The drug will be available in 600mg and750 mg dosages. It is used for the treatment of hypokalaemia( a condition in which thepotassium level drops in the blood). The drug is the generic version of Klor-Con by Upsher-Smith’s and has an estimated market size of $60 million.Aurobindo gets approval for Potassium Chloride pills in US

USFDA, the US health regulator completed the inspection of Biocon’s Telangana manufacturingplant with pointing out an observation and no Form 483* was issued. The inspection was carriedout from 12th to 14th December to check the manufacturing practices of the activepharmaceutical ingredients manufacturing facility.No USFDA observations for Biocon’s Telangana Plant

PHARMACEUTICALS

By Dixit Sambyal

Glenmark Pharma gets USFDA approval for ear drops

Glenmark pharma received the final approval from USFDA to market Fluocinolone Acetonide Oil.It is the generic version of DemOtic Oil, 0.01 percent of Hill Dermaceuticals Inc. , used for thetreatment of eczema of the ear. The oil has an annual market of $18.1 million. The companycurrently has a portfolio of 146 products which is approved for distribution in US markets and

there are 54 pending abbreviated new drug applications (ANDAs) for approvals.Glenmark Pharma gets USFDA approval for ear drops

PHARMACEUTICALS

By Dixit Sambyal

TCS appoints two new independent Director on its Board

Wipro acquired Australian based firm, Syfte

Tata Consultancy Services has added two independent directors to its board, taking the totalnumber of independent directors to six. Hanne Birgitte Breinbjerg Sorensen and Keki M Mistrywill join the board on a five-year contract, subject to stakeholders’ approval.Sorseen is Aarhus University graduate in Economics and Management with professional workingexperience for more than two decades.Keki Mistry has been the Vice Chairman for HDFC since 2007 and has also served Torrent PowerBoard.TCS appoints two new independent Director on its Board

Wipro has taken the step to increase its presence in the Australian Market. Syfte will beintegrated with Wipro’s wing Designit as both of them work on same area. The focus area forboth the verticals is human centred products, service and systems.Wipro acquired Australian based firm, Syfte

IT & Telecom

By Gaurav Patole

*In India, fiscal period starts from 1st April and ends on 31st March. This period in which the income is earned is known as the Financial Year or Fiscal Year.

Infosys appoints Nilanjan Roy as the new CFO

Nilanjan Roy has served in the position of CFO for Airtel previously. He served Airtel for 13 yearsbefore moving to IT industry. He has been appointed the CFO role replacing Infosys’ interim CFO,Jayesh Sanghrajka, making Roy the first outsider to hold the post of Infosys CFO. The mostimportant point to note from investor point is that he is the 3rd CFO in three years.Infosys appoints Nilanjan Roy as the new CFO

IT & Telecom

By Gaurav Patole

Sarda Energy & Minerals is in talks with Hong Kong based SSG Capital Management to acquiredistressed companies- Uttam Value Steel & Uttam Galva Metallics. The two companies togetherowe Rs. 5,400/- crore to lenders . Sarda Energy is based in Raipur with a 20 MT iron ore mine inRajnandgaon. It specializes in making niche grade manganese based ferro alloys. Other biddersfor Uttam group companies include JSW Steel, Liberty House, Aion Capital, Pheonix ARC. Thedeadline for final bids was 21st December, 2018.Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels

METALS & MINING

By Siddharth Toshniwal

IBC - Insolvency and Bankruptcy Code,2016 - The Insolvency and Bankruptcy Code, 2016 is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.

NCLT Delhi approves JSW Steel’s plan for VIL

Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels

NCLT New Delhi has given its nod to JSW Steel’s plan as approved by the CoC of VardhamanIndustries Ltd. (VIL), which is under Insolvency & Bankruptcy Code,2016. JSW Steel shall infuseRs.63.5 crores either by equity or debt within 30 days of the NCLT order. Of this 63.5 crores 62.5crores would go to the financial creditors & the operational creditors would receive the balanceRs.1 crore for settlement of existing debt of VIL. As per the IBC,2016 liquidation value payable toshareholders after paying off of dues is nil, therefore entire share capital of VIL shall be reducedto nil w.e.f from effective date.NCLT Delhi approves JSW Steel’s plan for VIL

Vedanta to move to Supreme Court against Madras HC order on Sterlite copper plant: CEO

METALS & MINING

By Siddharth Toshniwal

NGT – National Green Tribunalis responsible for effective and

expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto.

The Vedanta group would move to Supreme court to implement the NGT order to reopen theSterlite Copper plant in Tuticorin. The Madras high court has asked the Tamil Nadugovernment to clear its position on whether it wants to file an appeal against the NGT orderby 21st January,2019. On December 15, the NGT had set aside the Tamil Nadu governmentorder for closure of the Sterlite copper plant at Tuticorin, which was at the centre of massiveprotests over alleged pollution, saying it was "non-sustainable" and "unjustified."Vedanta to move to Supreme Court against Madras HC order on Sterlite copper plant: CEO

Increase of 25% in corporate loan book of Kotak Mahindra Bank

24% rise in farm loan NPA after loan waiver promises made

Owing to issues like NBFC crisis, cap on lending by almost half of the PSB’s, private sector bankKotak Mahindra has revised its targets for corporate lending from 15-20% growth to 20-25%growth. However, the bank will remain choosy as it itself is being brought down by the high NPAof ING Vysya which it acquired last year.Increase of 25% in corporate loan book of Kotak Mahindra Bank

Anticipating loan waivers from the government, farmers in MP have stopped making paymentsfor the loans they took, resulting in 24% increase in the NPA. This also has led to slow loangrowth of banks as they are waiting for reimbursements from the government, which may takeup to several years.24% rise in farm loan NPA after loan waiver promises made

BANKING SECTOR

By Sarthak Krishna

ONGC approves ₹4,022 crore share buyback

Mangalore Chemicals spikes as promoter releases pledge

The ONGC Board has approved a buyback of worth ₹4022 crore. It will repurchase 25.29 crorescrips about 1.97% of equity at ₹159 per scrip. The government has been persuading the cash-rich public sector undertakings (PSUs) to use their funds to buyback shares or pay a higherdividend, to achieve its fiscal deficit target of 3.3% for 2018-19. Earlier last week, the Indian Oilcorporation announced to buy 29.76 crore shares for about ₹4436 crore. The government isexpected to take part in each of these share buyback programmes. The Department ofInvestment and Public Asset Management (DIPAM), has set a target to raise ₹80,000 crore forthe government through stake sale in PSUs, had prodded all cash-rich PSUs to go for sharebuybacks. According to it, PSUs having a net worth of at least Rs 2,000 crore and a cash balanceof more than Rs 1,000 crore have to mandatorily go in for share buyback.ONGC approves ₹4,022 crore share buyback

The promoters of the company have released a pledge on 80 lakh shares of Mangalore Chemicaland Fertilisers Limited (MCF). The company's promoter Zuari Agro Chemicals Limited released80 lakh shares pledged with HDFC for repayment of a loan on December 7. MCF is the subsidiaryof Zuari Agrochemicals which holds a 53.03% stakes in the company. Recently, CARE Ratingagency revised the rating of the company's Long-term/ Short-term Bank Facilities to the CAREBBB+; Stable / CARE A3+ from the CARE BBB; Stable / CARE A3. The stock is buzzing and hasmoved up by 3%Mangalore Chemicals spikes as promoter releases pledge

CHEMICALS AND

PAINTS

By Payal Jhawar and Sukriti Hatgoankar

*Share buyback: It is the re-acquisition by a company of itsown stock. It reduces theoutstanding shares of thecompany in the open market.

ITC Pilots the Rice market with ‘Sona Masoori’

FMCG

By Shruti Kajaria

Pilot Project is a small scale preliminary study conducted to evaluate the feasibility, time, cost, and adverse events, to improve upon the design and performance prior to the full-scale launch.

ITC made a quiet entry into the Packaged, Non-Basmati Rice Market with the ‘sona masoori’rice brand in Bengaluru. ‘Sona Masoori’ is a fine non-basmati variety consumed mainly inSouth India, and grown in the Tungabhadra Belt of Karnataka. It plans to leverage it’s pre-existing widespread distribution network to venture into the rice market which ischaracterised by tough competition from players like, KRBL, LT Foods, Kohinoor and Patanjali.ITC plans to start this pilot run in Bengaluru, with 25kg packs, offering free home delivery at aprice of Rs. 1400 per bag. Sources reveal ITC’s presence in the rice export market to someAfrican and West Asian Markets, which suggests that it has its procurement and logisticsnetwork in place.ITC Pilots the Rice market with Sona Masoori

India should focus more on export to SAARC countries: Suresh Prabhu

Textile Ministry focusing on ensuring conducing environment

Union minister of Commerce & Industry, Suresh Prabhu said that India is not utilizing its fullpotential in exporting and cooperating with neighboring SAARC countries like Bangladesh andSri Lanka. He also added that these countries have become integral part of the global valuechain and the ministry is involved in supporting the industry in exports by creating new policies,improving Ease of Doing Business (EoDB), scrapping irrelevant regulations and formulating theconcept of growth of GDP in every district of the country.The Minister believes that the country needs to target on maximizing local value add andexplore newer avenues for expanding their target markets.India must increase exports to SAARC countries: Minister

TEXTILES & RETAIL

By Anoop Krishnan K

Smriti Irani, Union Minister for Textiles, said that the ministry has been striving hard forproviding a conducive policy environment, to facilitate setting up of newer units by privateentrepreneurs through newer initiatives and schemes. She also highlighted that the ministry isworking hard towards providing more opportunities for employment, production and exports.The ministry is also planning to focus more along the promotion of technical textiles.Textiles ministry ensuring conducive environment

GST Council cuts rates on TVs, movie tickets; cement, ACs left untouched

Micromax strengthens international play, to foray into South Africa

The GST council has announced to cut rates on 23 items. The cuts will be imposed from Jan 1 of nextyear. Monitors and TV screens up to 32 inches and power banks will attract 18% GST, as against 28%earlier. The rates have been kept constant for goods like tobacco, aerated drinks, and automobile andauto parts, generally considered as luxury goods. Also, the GST on the supply of gold by Nominatedagencies have been exempted which was done to exporters of articles of gold jewelry.GST Council cuts rates on TVs, movie tickets; cement, ACs left untouched

Micromax is foraying in the South African market to bolster its international presence. Afterfacing competition from the Chinese brands like Vivo, Xiomi and Oppo in the Indian market ithas decided to take such action. The company is confident of getting a contribution of about20% revenue from this market by next fiscal.Micromax strengthens international play, to foray into South Africa

CONSUMER

DURABLE GOODS

By Prateek Singhal

The consumer durabe is expected to increase at a 9 per cent CAGR to reach Rs 3.15 trillion (US$ 48.37 billion) in 2022

BSE gets SEBI's approval to increase trading hours in commodity derivatives

DHFL To Sell Entire Stake In Asset Management JV to Pramerica

BSE received Sebi's permission to increase trading hours by an hour in the commodity derivativessegment.The extended timing will be effective from December 31, 2018. For non-agricultural commodities, therevised timings would be from 9 am to 11:30/ 11.55 pm. For agricultural commodities, the tradinghours would be from 9 am to 9 pm. The BSE marked its entry into the commodity derivatives segmentwith gold and silver contracts on October 1, 2018. This was done in order to deepen the commodityderivatives market as well as enhance the participation of stakeholders and hedgers. Extended tradinghours will encourage hedgers, corporate, institutions and foreign investors to use exchange tradedcommodity derivatives as a preferred hedging platform. Commodity trading on the BSE has beengaining momentum as the transaction charges have been waived for one year.BSE gets Sebi's approval to increase trading hours in commodity derivatives

In the wake of a liquidity crunch in NBFC and HFC space, Dewan Housing Finance Corporation(DHFL) will sell its entire stake in the mutual fund business, DHFL Pramerica Asset Managers, to itsjoint venture partner Prudential Finance. The stock gained 5 percent . DHFL currently holds a 50percent stake in DHFL Pramerica Asset Managers (DPAM), with 17.12 percent directly and 32.88percent through subsidiary DHFL Advisory and Investments. Pramerica Financial and DHFL haveentered into a binding term sheet to acquire DHFL's stake in their 50:50 joint venture assetmanagement company, DHFL Pramerica Asset Managers.DHFL To Sell Entire Stake In Asset Management JV to Pramerica

NBFC

By Aashpreet Giddey

Liquidity crisis occurs whenthe otherwise solvent businessdoes not have the liquidassets (i.e., cash) necessary tomeet its short-termobligations, such as repayingits loans, paying its bills andpaying its employees.

Endurance Technologies ends Manesar plant operations

Cummins India Ltd appoints Mrs. Anjuly Chib Duggal as director

Endurance technologies has announced closing of its Manesar plant operations withimmediate effect . The move is part of the company's plan to consolidate plant operations andconsequent discontinuation of manufacturing operations at Manesar, which it had announcedon September 10, 2018. The company will announce a suitable compensation for all itspermanent workmen employed on the rolls of the plant. The said package, to be offered, willbe consistent with the industrial practices followed by the company.Endurance Technologies ends Manesar plant operations

Mrs. Anjuly Chib Duggal has been appointed as an Additional Director (Non-executive andIndependent) of Cummins India Ltd w.e.f December 19, 2018. She has worked previously inareas relating to Financial Services, Corporate Affairs, Expenditure, Foreign Direct Investment,Industry and Personnel management, amongst others. She has also ran a leadership programmein Environmentally Sustainable Development, for mid-career professionals.Cummins India Ltd appoints Mrs. Anjuly Chib Duggal as director

AUTO ANCILLARIES

By Suraj M

*An independent director is a director of a board of directors who does not have a material or pecuniary relationship with company or related persons, except sitting fees.

GST Council likely to slash tax rates on automobile tyres to 18%

AUTO ANCILLARIES

By Suraj M

The Goods and Services Tax (GST) Council is likely to slash tax rates of automobile tyres to 18 per cent from 28 per cent currently from its next meeting onwards. This news has already led to stock prices of tyre companies surging. This move is a part of the Indian Government’s move to rationalize items that are currently present in the 28 percent GST bracket and reduce the burden on the common man.GST Council likely to slash tax rates on automobile tyres to 18%

Government forming Integrated Logistics Plan to decrease logistics charges

Top level organisational changes at Delhivery

Indian Logistics Industry is around USD 215 billion and is growing approximately at 10 percentannually. The cost of logistics of India is around 14 percent of its GDP, whereas that of developedcountries is 7-8 percent. So the government is preparing a plan of integrated logistics system tocut costs and increase the pace of logistics movement, said Suresh Prabhu, Commerce andIndustry Minister. This plan will integrate rail, road, air and ship. There has been disruptions inthe global supply chain because of US-China trade war. This is creating large opportunities forthe Indian Logistics sector and the government is planning to exploit this opportunity. Variousdevelopments in rail, road and shipping industries has already been started for the same.Government forming Integrated Logistics Plan to decrease logistics charges

Sandeep Barasia, former joint MD at Delhivery has been designated as Chief Business Officer.He will take care of all three major profit and loss items viz parcel, warehousing and freight.Ajith Pai has been designated as COO, who was finance chief. He will lead engineering,operations, HR and finance. Amit Agrawal will assume the role of CFO. Sahil Barua, co-founderand CEO of Delhivery, rolled out the notice to all the employees. According to Barua, thechanges have been made to guide the organization’s aggressive plans for 2019 and beyond.Delhivery is diversifying into other areas like cross-border, B2B logistics to decrease itsdependence on e-commerce sector.Top level organisational changes at Delhivery

PORTS & LOGISTICS

By Snigdha Baidya

Back Haul- The return trip of a truck transporting cargo or freight.