Colao trades one Vodafone risk for another 20 Mar 2017 The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.
Indian tycoon bets house on Africa in Anglo raid 16 Mar 2017 Anil Agarwal's personal 2 bln pound raid on Anglo American reveals a wish to build a global mining giant. There is little overlap with his London-listed Vedanta. But Agarwal has a keen interest in Southern Africa - and a 12 pct stake would give him prime position in any break-up.
Modi’s state poll victory will keep India moving 13 Mar 2017 A big win by Prime Minister Narendra Modi’s BJP after a disruptive currency overhaul shows Indians are willing to endure pain for progress. It gives a green light for more reforms that benefit the poor, like simpler subsidies. A major shift towards free markets is less likely.
India becomes front in global e-commerce proxy war 5 Mar 2017 Alibaba is leading a $200 mln investment into Paytm’s marketplace, creating a new Indian unicorn. That confirms the Chinese juggernaut's decision to take on Amazon, which is investing $5 bln in India. As homegrown rivals flail, tech's big boys will duke it out. Only one will win.
Vodafone’s Indian deal has an elephant in the room 13 Feb 2017 Tycoon Kumar Mangalam Birla wants to combine his Idea Cellular with Vodafone's local arm, in a merger "based on equal rights". Given a jump in the shares since announcing it was in talks, Idea could have half the $25 bln giant – but Birla would still be reduced to a bit part.
Apple sows seeds for India iPhone awakening 10 Feb 2017 The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.
Indian bank is right to think big in microfinance 7 Feb 2017 A mooted $1.7 bln takeover of Bharat Financial Inclusion would help IndusInd Bank sustain rapid growth and boost profitability. It would also help secure the bank's already high valuation. However, the buyer will also inherit the political risks of lending to the very poor.
India state firm fusion is marriage of convenience 3 Feb 2017 A push to create national champions starting with the oil sector pairs industrial logic with Prime Minister Narendra Modi’s propensity for grand gestures, and desire to compete globally. Selling off small stakes in bigger players will also be easier than full privatisations.
India favours poor with damage-control budget 1 Feb 2017 Finance Minister Arun Jaitley is relaxing a bit on deficit reduction, while taxing the rich more to fund big outlays for the rural poor. There are few benefits for corporate India. But the budget will help to limit the political fallout from India's big currency experiment.
Vodafone dials for backup in India telco fight 30 Jan 2017 The UK-based group is discussing an all-share merger of its India business with Idea Cellular, part-owned by cement-to-retail Aditya Birla Group. Combined, they could take the fight to sector upstart Jio. Vodafone might also be better-placed for M&A back in Europe.
Tata’s new chief is good step toward redemption 13 Jan 2017 IT whizz Natarajan Chandrasekaran is the closest thing to an outsider to lead the Indian group; he gives Tata Sons a real shot at fixing thorny governance issues. He can also help his successor at cash cow Tata Consultancy tackle a tough job as the U.S. cools on visas.
Amazon doormat spat reveals nationalist wild card 12 Jan 2017 An Indian minister threatened to rescind visas of Amazon staff unless its Canadian website halted sales of doormats resembling the country's flag. The doormats quickly vanished, but politicians pandering to jingoist Twitter shaming is a real and rising global business risk.
India’s next big experiment could be basic income 10 Jan 2017 A direct cash transfer to citizens could replace a plethora of subsidies and benefits. That would reduce corruption and waste, especially if the handout only goes to the poor. But identifying the worthy will be tough, even with India’s impressive biometric identity database.
Bank rate cuts are a key step in India’s recovery 3 Jan 2017 Admonished by Prime Minister Narendra Modi, banks are slashing lending rates up to 90 basis points. That is critical to kick-starting credit growth and thus the economy. But all the uncertainties created by a nationwide cash crunch mean it is too soon to cheer a revival.
Best of Breakingviews 2016: Our readers’ top picks 30 Dec 2016 You demonstrated a varied, voracious appetite for insight in 2016. The most-clicked columns, podcasts and graphics encompassed the rise of Trump and Brexit Britain to Singapore, Saudi Arabia, negative rates, tech titans and an ethical dilemma for Harvard's business school dean.
India is gearing up to recapitalise its big banks 30 Dec 2016 The country's lenders already need $27 bln or more of capital. Now Premier Narendra Modi's scrapping of high-value banknotes could lead to a spike in bad loans at small businesses. That might rally support for a move and help Modi as he repositions himself as a champion of the poor.
Lucky unicorn cashes in on India’s money madness 21 Dec 2016 Usage of Paytm, a mobile wallet, has soared among a nationwide cash crunch. The challenge will be to keep up the momentum. India is pushing digital payments hard but a government-backed rival looms. And having Alibaba as a backer could eventually backfire.
Asia’s pollution problem is choking off talent 21 Dec 2016 Poisonous air has caused major disruption in recent weeks in China and India. Public awareness of the pollution problem is growing too. Employers will need to factor in a fatter premium in 2017 if they want to attract and retain the best brains in dynamic but dirty markets.
Tata is $10 bln poorer post-Mistry 20 Dec 2016 Ousted Chairman Cyrus Mistry has ended his boardroom battles at India's Tata. The value of Tata's main listed firms has shrunk over the two-month saga, underperforming a weak market. The damage illustrates the value of good governance and a strong reputation to public companies.
Outside shareholders tell Tata to shape up 14 Dec 2016 Almost half of minority investors in Tata Consultancy Services voted against removing Cyrus Mistry as a director of the Indian conglomerate's crown jewel. The rebuke sends a clear message to patriarch Ratan Tata: either fix governance or take tighter control of group companies.