Expensive capital will slow the green transition 17 Jun 2022 Strategic investors with low-cost, long-term funding have put polluter India on course to hit 2030 goals. TotalEnergies’ plan to help Adani spend $50 bln on green hydrogen hints at ongoing support. But such sponsors may have to step it up as rising rates and risk aversion bite.
Cricket rights will bowl India Inc a new line-up 10 Jun 2022 A third of teams in the sport’s premier league fit poorly with owners like Diageo. One, Reliance, wants the broadcast rights too. CVC’s entry into the club creates more uncanny parallels to a changing corporate India. The outcome of the $6 bln TV auction may spur a clean-up.
Boots deal will add to Reliance’s retail black box 9 Jun 2022 The Indian conglomerate submitted a binding bid for Walgreens’ UK pharmacy chain in a consortium with Apollo. It’s a big pivot for Mukesh Ambani. Opacity around his retail expansion and a determination to win at all costs are a worry. Bulking up will make things worse.
Stability and security trump threat of sanctions 30 May 2022 India is buying more Russian oil and coal, and a state-led group of companies is now eyeing Shell’s stake in an LNG project. Price volatility and climate woes are dictating national priorities. It’ll be thorny for the West to punish poorer countries for putting themselves first.
India’s energy-storage fix has virtue of speed 18 May 2022 As the West obsesses over building the perfect battery, Singapore- and Abu Dhabi-backed Greenko is launching the largest long-lasting renewable power-storage project. It’s a low-tech leap towards a greener energy system. Big customers like ArcelorMittal are lined up too.
Holcim deal cements Adani’s rise at fair price 16 May 2022 The M&A-hungry tycoon is spending up to $10.5 bln to enter India’s building-materials market, despite the construction sector’s mixed outlook. Using a special-purpose vehicle will keep debt at Adani’s listed entities in check. For Swiss seller Holcim, it’s a simpler deal.
India stands between world and food riots 16 May 2022 A ban on wheat exports is a messy but partial U-turn on India’s pledge to feed the world with its grains. The move protects consumers at home at the expense of farmers. Globally, it will exacerbate food security woes and shift the focus onto the country’s critical rice exports.
Xiaomi fight puts China Inc on India red alert 13 May 2022 The country’s tax and financial agencies have tried to block some $1.2 bln of the smartphone maker’s funds. New Delhi engaged Vodafone, Cairn and others in similar battles but its testy relations with Beijing up the ante. Xiaomi and Chinese peers in India face a slow decline.
India heatwave throws food security for loop 12 May 2022 Crops are wilting after weeks of climate change-induced scorching temperatures. On top of domestic pain, it casts doubt on India’s new role exporting grain to replace supplies lost to Russia’s war in Ukraine. That’ll create more dilemmas for political leaders near and far.
Great Resignation programmed into Indian IT deal 21 Apr 2022 As global companies upgrade to the cloud and explore the metaverse, revenues for outsourcing firms are surging. So are employee departures. At this delicate time, the risks of a mooted merger of two services companies of $32 bln Larsen & Toubro could outweigh the benefits.
India’s Reliance is miscast as M&A stalking horse 21 Apr 2022 Mukesh Ambani’s $230 bln conglomerate is touted as a bidder in big deals from Walgreens’ Boots sale to telecom operator BT. Reliance’s record suggests it’s hardly the new dumb money. Bankers trying to fill a void left by sovereign funds and Chinese buyers may be disappointed.
India’s Russian oil binge carries hidden costs 14 Apr 2022 New Delhi is filling its boots with Moscow’s cheap crude, just as Europe and traders like Vitol start to turn away. The aggressive ramp-up carries longer-term risks. As a keen buyer, India will find it hard to get waivers from sanctions if the West targets Russia’s energy trade.
India’s $168 bln bank merger bets the house 4 Apr 2022 HDFC Bank’s plan to buy its mortgage-lender parent at a tiny discount sparked a 10% rally in shares of both. New capital rules enable the long-speculated union. Benefits range from lower funding costs to resolving CEO succession. Preparing for a home-loan boom is the main goal.
Citi exit tests Indian banks’ pulling power 31 Mar 2022 The Wall Street firm, the biggest foreign brand to leave the market, can be happy selling its subscale retail business for $1.6 bln. It’s a fair price for local buyer Axis, too – if it can retain the higher-spending affluent clients who liked the appeal of an overseas bank.
Entertainment war debuts in Indian cinemas 28 Mar 2022 PVR and Inox’s $2.3 bln merger will combine the country’s top multiplex operators as a battle for content intensifies between Amazon, Disney, Sony, and Reliance. It’s not too pricey and just like cinemagoers love war movies, shareholders should enjoy this defensive deal.
Sea’s ‘Free Fire’ churns up Singapore-India ties 25 Mar 2022 New Delhi’s ban on the mobile game persists despite diplomatic intervention. The clash, tangled in Chinese tensions, casts a shadow over India’s relations with one of its biggest foreign investors. Rising nationalist sentiment on both sides will make rifts harder to heal.
India’s foreign IPO freeze fits divided world 24 Mar 2022 New Delhi is pausing plans to allow local companies without a domestic listing to float overseas. A global tech rout, the saga around U.S.-traded Chinese firms, and Russian sanctions all help to make the worrying case. In the long run, it risks driving startups away sooner.
India’s food super-app hits new gluttonous heights 14 Mar 2022 Food delivery group Swiggy’s ramp up of its rapid grocery service is locking in higher-spending users, giving the Prosus-backed firm an edge over Zomato. But the tech rout and ugly economics of speedy deliveries suggest a $10 bln valuation is better served up in private markets.
Disney without cricket risks its streaming game 3 Mar 2022 IPL rights held by the Mouse House are up for grabs. Sony and Reliance are pumped-up contenders, and bids may hit $6 bln – well over double the 2017 price. India is the fastest-growing hub for Disney+ but minus the popular game, boss Bob Chapek can kiss subscriber gains goodbye.
India’s Russian romance will be hard to stifle 2 Mar 2022 New Delhi is under pressure to join others aligning behind Ukraine. Beyond protecting its defence-equipment supplies, however, the ties to Moscow help check China’s influence. And the energy transition even makes a case for the oil-hungry nation to deepen the relationship.