India

Viewsroom: Is Silicon Valley getting nervous yet?

4 July 2018

The tech hub is getting squeezed by new policy restrictions amid a looming trade war between the U.S. and China. How is the Valley holding up? Plus: India's state lenders are losing CEOs. Is running these banks into the ground part of the plan?

Agarwal’s Anglo American carve-up looks a stretch

4 July 2018

The Indian billionaire is mulling a merger of his Vedanta empire with the global miner’s South African arm, Mint reports. The valuation case for a breakup is less compelling than it was. If Agarwal acts, it looks more logical to target the miner’s non-South African assets.

Chairman’s death intensifies HNA uncertainty

4 July 2018

The accidental death of co-founder Wang Jian adds to questions about the future of the embattled conglomerate. His precise remit at the closely held group was not clear. Unlike some other big private Chinese outfits, however, HNA was not reliant on a single leader.

WhatsApp hits limits of technology in India plight

4 July 2018

Just as the Facebook-owned messaging app pushes into payments in its biggest market, it has been warned by New Delhi about false information linked to mob killings. The service’s encryption means new code will be of little help. WhatsApp requires a different sort of innovation.

Vedanta digs just deep enough to leave London

2 July 2018

Chairman Anil Agarwal’s offer of a 28 pct premium for the mining group’s 2.3 bln pound UK unit is probably enough for investors spooked by deadly protests. They can invest directly in the Indian operations anyway. And a simpler structure paves the way for more dealmaking.

Steel pact lets Thyssen/Tata tackle wider problems

2 July 2018

Tweaking the terms of their September joint venture gives the German steelmaker a bigger share of a future IPO. It could have driven a harder bargain, but Tata had limited wiggle room. Besides, ThyssenKrupp needed a deal to kickstart its own much-needed overhaul.

India’s banking zombies pose a problem

28 June 2018

Of 21 state lenders, half face growth restrictions and half will soon be without a CEO. Letting these entities run into the ground could be privatisation by stealth. Given $150 billion of bad debts in the system, real sell-offs would be less embarrassing and more efficient.

Viewsroom: Disney, Comcast go from zero to berserk

21 June 2018

The Magic Kingdom and the cable company are driving up the price for parts of Twenty-First Century Fox in a global M&A battle that throws financial logic out the window. But does it make sense strategically? Plus: India’s cricket league takes a few pages from the NFL playbook.

India will test Xiaomi’s two-pronged strategy

21 June 2018

The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.

Air India sale could take off again

20 June 2018

New Delhi has shelved the disposal of the indebted national carrier after failing to attract bidders. It’s a bad time to push privatisation, with a general election looming. If Premier Narendra Modi wins the poll, though, the p-word could still be his big reform set piece.

Bank exits leave India lacking female role models

19 June 2018

The boss of $30 bln ICICI Bank is on leave pending a misconduct inquiry. If she departs, the sector will lose its third female CEO in just months. That is an unhelpful coincidence in a country where far too few women work, creating a dire shortage of senior figures to emulate.

India’s taxi-app war enters China territory

15 June 2018

Local operator Ola lost over $700 mln in the year to March 2017 despite growing revenue 70 pct. That’s nearly as much as Uber was burning when it was battling China’s Didi. The U.S. company’s commitment to India suggests losses will keep piling up for both SoftBank-backed firms.

ThyssenKrupp can forge better steel deal with Tata

14 June 2018

The German group has outperformed its Indian rival since they agreed a European steel joint venture last year, and now produces more than twice as much EBITDA. Tata could pay cash or give up dividends to close the gap. Walking away from the hefty synergies would be too painful.

India Insight: IPL bats for global sports crown

11 June 2018

More people may have tuned in for the final of the 11th season of the Indian cricket league than the NFL’s Super Bowl. Salaries are starting to rival English soccer’s Premier League, and advertising dollars are rising fast too. It’s a stunning Indian growth story with room to run.

India’s central bank finds comfort in the crowd

6 June 2018

A 25 basis point hike in the main rate comes as the rupee is one of the worst performing regional currencies this year. By acting now, the Reserve Bank of India ensures it doesn’t look like a laggard. But higher rates and oil prices mean the recent growth spurt may soon wane.

Indian growth spurt could prove fleeting

31 May 2018

The economy outpaced China by growing 7.7 pct in the three months to March. The fastest annual rate of growth since New Delhi scrapped high-value bank notes in 2016 is unlikely to last. Higher oil prices are bad for the current account. And more inflation will force a rate hike.

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.