India

Digital viewers add cash to Bollywood’s glitz

19 September 2019

After two decades abroad, India's Oscars swept into Mumbai this week. It's a timely homecoming for the world's busiest film industry. Box office receipts are booming and the sale of rights to Amazon, Netflix and others have helped earnings too. Everyone is winning, for now.

Vaping isn’t dead, just prematurely haggard

18 September 2019

Juul Labs started as a safer alternative to smoking, but now lawmakers are treating it as a menace. Its recent $38 bln valuation has likely gone up in flames. That doesn’t mean e-cigarettes won’t be profitable. Margins could even be higher as a niche health aid.

The Exchange: The Asianisation of the world

17 September 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

A little sunlight would help India’s shadow banks

13 September 2019

Alternative lenders have grown rapidly, providing loans for cars and homes. Now many are struggling to secure funds and share prices have plunged. A central bank-led review to expose the weakest would restore confidence and help reverse India's sharp consumption-led slowdown.

Indian bank merger extravaganza will hurt first

3 September 2019

New Delhi wants to combine 10 state-owned lenders into four, as it cleans up a sector weighed down by bad debt. But job cuts are ruled out, putting synergies out of reach, and a recent combination of three others destroyed value. It's a costly distraction for a flailing economy.

India gives markets two unwanted presents

30 August 2019

A 5% reported GDP growth rate will fuel fear of a return to the dreaded “Hindu rate of growth”. In a frantic attempt to boost confidence, New Delhi unveiled mergers of 10 state banks. India needs a radical financial overhaul to fix its home-grown economic woes. This isn’t it.

India’s coal-fired growth requires some shovelling

30 August 2019

New Delhi, trying to juice the economy, will allow 100% foreign investment in the fuel. Local demand is rising, but resource giants have had bad experiences on the ground, and big miners are pulling out of thermal coal. India will have to work hard to make its tardy policy work.

Toyota and Suzuki make a virtue of cross-holdings

29 August 2019

The carmakers are buying small stakes in each other, four years after Suzuki ended a rocky ride with Volkswagen. Although such deals are being unwound across Japan, this one holds promise. It may pave the way for a deeper alliance in an industry increasingly dependent on scale.

Vodafone races against time to salvage India deal

28 August 2019

Since the British mobile giant unveiled a merger of its local business with Idea in early 2017, 90% of the equity value has vanished. As it tries to deliver $10 bln of promised synergies, rivals including Jio are adding 4G users faster. Another cash call may be needed.

New Delhi’s central bank raid helps by half

27 August 2019

The record $25 bln being transferred to the government should help Prime Minister Narendra Modi’s stimulus plans. State lenders could use the funds more than the well-cushioned RBI. It would be imprudent to recapitalise them, however, without accompanying governance changes.

India gets stuck in anti-corruption crossfire

23 August 2019

After tycoons, authorities are turning to politicians, arresting opposition veteran and former finance minister P. Chidambaram. The move, months after Narendra Modi's big win, fuels fears of factionalism; it also raises concerns about the unwanted consequences of a cleanup.

India could use a good economic crisis

21 August 2019

Car sales are down, unemployment is up and new investment proposals are at a 15-year low. There may be a silver lining: India has a record of bold reforms in times of stress, as when the country opened up in 1991. Prime Minister Narendra Modi has the mandate to repeat the trick.

Viewsroom: WeWork unfurls the red flags

15 August 2019

The shared-office provider’s long-awaited IPO filing is packed with pointless life-affirming tropes. But it also details a host of conflicts of interest and other risks that should send investors running. Plus: India’s powerhouse Reliance is building a war chest for dominance.

Aramco stocks Reliance’s war chest for disruption

12 August 2019

Mukesh Ambani says the Saudi giant will buy 20% of his oil-to-chemicals unit at a healthy $75 bln valuation. The billionaire is adding cheap broadband to a revolutionary telecoms offering, and aims to reinvent Indian retail too. The Aramco sale hints at how far he'll go to win.

India’s bold Kashmir grab raises economic stakes

6 August 2019

New Delhi says an abrupt move to end special rights for the disputed territory will aid development. Kashmir could use more state funds and private cash, but gains will be limited without peace. Serious unrest would also hit a $3 trln Indian economy already in the doldrums.

Father of Indian TV muddies deal transmission

1 August 2019

Subhash Chandra is selling 11% of Zee Entertainment to Invesco to pay down debt. The transaction values the top broadcaster at $5.6 bln and fends off a mooted Comcast-led bid. Shareholders miss out on a control premium and face more uncertainty before Zee can realise its value.

India’s richest man closes in on Jeff Bezos

30 July 2019

Mukesh Ambani’s Jio has defied expectations. Three years in, the upstart has become the country’s top mobile telco. That puts $111 bln parent Reliance Industries, an oil giant with retail ambitions, on track to conquer consumers with its heady blend of AT&T and Amazon.

Indian mogul’s ode to Anglo ends on duff note

26 July 2019

Anil Agarwal is dumping his roughly 20% stake in miner Anglo American. The complex holding structure, dubbed “poems” by creator JPMorgan, meant he only partly profited as the target’s shares soared. The bigger prize, meshing it with his Vedanta empire, also proved elusive.

Tata adds fuel to India’s automotive misery

25 July 2019

Cars are a potent symbol of rising wealth, and Indians are buying fewer of them. Tata Motors’ earnings add to fears of a deep slowdown. There are various causes, from mounting ownership costs to adoption of Uber. Yet the automobile still looms large in the country’s future.

India unlocks a $200 bln stressed debt market

22 July 2019

The country’s first comprehensive bankruptcy code has hit bumps with cases like the drawn-out takeover of Essar Steel. But the framework is starting to offer better recovery, prompting creditors to act sooner. That’s good news for lenders and investors like Apollo and Oaktree.