India

Vedanta’s tin ear is a problem for shareholders

30 May 2018

After deadly protests forced the closure of a plant, Chairman Anil Agarwal is blaming a foreign conspiracy. That is no way to reassure rattled investors in the Indian miner, especially given Vedanta’s controversial history. At least a new incoming CEO can set a better tone.

Oil rally puts New Delhi in a bind

29 May 2018

As a major energy importer, India is in a tight spot. Taxes introduced when crude was cheap are now squeezing consumers. The government can’t reverse course without creating a budget hole – unless it makes up the shortfall by taxing ONGC and other producers instead.

Indian hospital deal merits a second opinion

24 May 2018

A Fortis Healthcare director was ousted by shareholders after three others facing a similar fate resigned a day earlier. It’s a rebuke of the decision to sell a minority stake to local tycoons. A fresh review of four other offers by a new board should lead to a better prognosis.

ArcelorMittal paying an odd bid “premium” in India

21 May 2018

The world's largest steelmaker is ready to cover $1 bln of debt in a tiny rival it no longer backs so it can buy bankrupt Essar. A quirky rule bans owners of defaulting companies from acquiring distressed assets. It's a sign of how India’s bankruptcy law is a work in progress.

Settling 1MDB scores will be easier than debts

18 May 2018

Malaysia’s new government can reopen investigations in the state fund but they are stuck with its debt. Reckless promises of support, and a previous desperate clean-up, put the state on the hook for about $8 bln. Trying to dodge these obligations would do more harm than good.

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.

India Insight: Narendra Modi has lost the boardroom

14 May 2018

Executives who once touted him as a three-term prime minister are grumbling and wondering if he can even win a second. Modi still has broad popular support. But the relationship between New Delhi and bollygarchs is one he can’t afford to let sour for too long.

Hardy Indian hospital auction takes sickly turn

11 May 2018

A divided Fortis board chose selling a minority stake to two investors with little experience running hospitals over four other offers, including a $1.3 bln takeover. Half the directors may be gone before shareholders vote. The disarray leaves room for a hostile bid.

Walmart wages dangerously big online war in India

9 May 2018

Even as an e-commerce push at home stumbles, the mega-retailer is plowing $16 bln into Flipkart. It pits Walmart against Amazon in a huge unprofitable market, and also challenges Alibaba, which backs Paytm Mall. After missteps in China, this will be a make-or-break overseas deal.

Indian hospital penta-scrum poses board quandary

9 May 2018

Five bidders want to invest in ailing Fortis, valuing it at up to $1.4 bln. Offers range from small stakes to a full takeover. Lenders and hedgies may want a quick exit, but in a critical care business, directors would do well to consider a treatment that works for the long term.

Flipkart bid would be rare defensive one by Amazon

3 May 2018

It'd be a coup if the e-commerce titan took control of its larger rival in India. Chasing the business started by former Amazon employees would suggest boss Jeff Bezos is worried by the idea of Flipkart uniting with Walmart. The battle underscores the significance of the market.

India’s top builder starts useful renovation

2 May 2018

Larsen & Toubro is selling its electrical and automation unit to Schneider and Singapore's Temasek for $2.1 bln. It reduces the sprawl of a $30 bln group with lacklustre returns. To achieve ambitious targets could require more remodelling from a CEO less than a year into the job.

Indian telecom tower M&A leaves room for more

25 April 2018

A union of Bharti Infratel and Indus Towers creates a $15 bln company with more masts than heavyweight rival American Tower. This paves the way for indebted telecoms backers, including Vodafone, to take out a special dividend or sell part of the merged group to a buyout firm.

India is prize worth keeping for Uber

20 April 2018

The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.

Hadas: Knowledge is better shared than patented

18 April 2018

China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.

India’s cash shortage may be charged to Modi

18 April 2018

ATMs in several states have run out of money amid a spurt in demand. Officials say there is no need to panic. Indeed, cash in circulation is back to where it was before Prime Minister Narendra Modi's bold experiment with large notes. That suggests bad planning is to blame.

Ailing Indian hospitals warrant healthy bid action

16 April 2018

Buyout firm TPG is backing one of three rival offers valuing scandal-hit Fortis at up to $1.3 bln. Private services are in demand with rising incomes and an increase in lifestyle diseases set against New Delhi's failure to provide decent healthcare. Medical tourism helps, too.

Time is right for Asia’s richest banker to pounce

12 April 2018

Uday Kotak has long had an eye on Axis Bank. Now a leadership void could make it easier to forge a union with his own Kotak Mahindra to create a $54 bln Indian banking giant. A deal would allow the tycoon to lead consolidation and meet ownership rules without selling shares.

CEO exit signals new era for star Indian banks

10 April 2018

The boss of Axis Bank is unexpectedly on the way out after almost ten years running the $20 bln private-sector lender. The boss of rival ICICI could follow. This heralds an era of tougher oversight from the central bank, which could put some of these institutions in play.

Indian cricket plays well for Disney and Murdoch

6 April 2018

Fox’s Star India is paying almost $1 bln to secure its monopoly over Indian cricket. It is unusual to see a company in play splashing the cash so freely. That suggests Disney, which is keen to buy parts of Rupert Murdoch's empire, shares his enthusiasm for this growth market.