Kotak’s IT slap-down points to a system weakness 25 Apr 2024 Shares of the $44 bln bank fell 13% after the regulator barred it from acquiring new customers online following tech failures. Kotak's rich valuation is slipping away. Targeting growth is a smart punishment but the RBI may need to be tougher. Digital weakness appears widespread.
Reliance’s efficiency may be New Delhi’s problem 23 Apr 2024 Completing the rollout of its 5G service helped Mukesh Ambani’s $240 bln oil-to-data conglomerate reduce capex by 7%. That’s good for shareholders. But Modi needs companies to boost spending to meet his administration’s deficit reduction goal without compromising on GDP growth.
Stakes for India’s election outcome widen 22 Apr 2024 Prime Minister Modi’s BJP and rival Congress party promise to create jobs in their manifestos but differ somewhat on how to achieve the goal and on government spending. As India's bonds are added to global indices, a return to profligacy would be extra painful.
Remaking Made in India will be a long slog 19 Apr 2024 Despite capturing iPhone production, a $24 bln scheme to become the world's factory is ripe for a reset. Officials are learning the hard way that subsidies and cheap labour aren't enough to lure investment. Lower import tariffs would help, cooperation with China is a necessity.
MUFG and Indian credit scratch each other’s backs 15 Apr 2024 Taking a $2 bln stake in an Indian shadow lender backed by HDFC would be punchy at five times book value. Still, the South Asian country's non-banks are growing super fast. Japan's financial institutions aren’t waiting around for a payday at home from rising borrowing costs.
India can grow fast with or without Narendra Modi 10 Apr 2024 The prime minister is hot favourite to secure a third term, and to lead the country into another decade of economic expansion. Yet projections of 6%-plus annual GDP growth are below the country’s own track record. And hitting the mark does not depend on one man.
India’s tech engine is primed for an AI boost 9 Apr 2024 Companies like BMW are deepening ties to the country’s IT services sector, which boasts low costs and a steady supply of engineers. As global businesses adopt artificial intelligence, Tata and peers look well placed to capture a larger share of the $4 trln tech services trade.
Blackstone dodges worst of Asia’s exit angst 8 Apr 2024 It plans to float more businesses in India this year, including a diamond certification firm at up to 6 times the value it paid last year. Apart from being one of the region’s biggest private equity investors, it is one of the least exposed to China. That strategy is paying off nicely.
Tata’s forced IPO will only bring problems 28 Mar 2024 A central bank decision requires the $194 bln holding company of the Indian cars-to-tech conglomerate to list. It could lump Tata Sons with a huge discount and also spotlight the special tax treatment the group’s ultimate owners enjoy. That could force an even bigger upheaval.
LNG angst seeps from consumers to producers 27 Mar 2024 A few years ago, supplies of liquefied natural gas were scarce and prices sky-high. Extra capacity arriving this decade means there could soon be a price-sapping glut. Big suppliers like Qatar and Shell have long-term contracts that can ease the pain, but only up to a point.
Cars are moving into the fast lane for Tata 15 Mar 2024 Autos were once group Chair Natarajan Chandrasekaran’s top headache. Now he’s splitting $43 bln Tata Motors into commercial and passenger vehicles. That's doable because luxury unit Jaguar Land Rover no longer burns cash. The rejig paves the way for more dealmaking too.
Ambani wedding puts new spin on Indian business 4 Mar 2024 CEOs of BP, Brookfield and Meta were among those attending Anant Ambani’s pre-nuptials bash in Jamnagar, Gujarat. Rich families are answering premier Narendra Modi’s call to shun overseas extravaganzas. For India, the prize goes well beyond the $50 bln marriage industry.
Make in India can dial up Chinese characteristics 1 Mar 2024 India's $300 bln electronics dream is stuck on low-end work like assembling iPhones. To climb the manufacturing ladder, it can improve market access for its neighbour's firms in exchange for expertise. That will require officials to lower tariffs and open up to Chinese investment.
Post-crisis Adani is cranking up his IPO factory 29 Feb 2024 Indian tycoon Gautam Adani is on a comeback from a short-seller attack that stress-tested his $200 bln empire. In this Viewsroom podcast, Breakingviews columnists explain how the spotlight impacted his group and look at the next crop of listed companies it is set to produce.
Disney gets second mouse role in Reliance show 29 Feb 2024 The duo are merging their Indian TV and streaming assets into a $8.5 bln joint venture. It's a welcome end to an unnecessary distraction for Disney boss Bob Iger. After forcing the US firm into missteps, Mukesh Ambani's Reliance is winning control of a powerful entity at a steal.
India’s startups will no longer price perfection 22 Feb 2024 Fintech firm Paytm and online educator Byju’s were two of the country's hottest tech companies but their valuations have been crushed and they are flailing around. Bad governance is to blame. The upshot? Investors will receive the coming wave of fundraisings and IPOs cautiously.
Kotak’s boardroom rejig hints at succession pain 20 Feb 2024 Four months after Asia’s richest banker Uday Kotak anointed an ex-Citi veteran and outsider to take over his $41 bln bank, the new boss is ceding part of his role to a snubbed insider. It’s a messy, indecisive and reactive development at India’s most richly valued big bank.
Adani is a gift that will keep on giving 14 Feb 2024 Its flagship company is a top coal trader and is incubating new businesses from green power to airports. That will soon produce a wave of IPOs. Asia's richest man will keep testing and shaping India's $4 trln stock market for years to come.
Hyundai’s India IPO will crush Korean discount 9 Feb 2024 A Mumbai listing of its local unit at a $30 bln valuation would secure an earnings multiple many times its parent. Proceeds will fuel blistering growth and enable Hyundai to cut more deals. It rarely makes sense to float subsidiaries but this plan looks more than roadworthy.
India needs less Tesla, more Toyota 6 Feb 2024 Hybrids - like those made by the Japanese marque - are taxed as luxuries, at a far higher rate than pure electric vehicles. As global EV sales growth falters and companies around the world slam the brakes on investments, India has fresh reason to level the playing field.