Category — Economy

Mondelez, Colgate Upbeat about India in 2018

Reporting significant sales growth in the latest quarter, global companies such as Mondelez, ColgatePalmolive and Unilever are upbeat about opportunities in India and said the country remains a bright spot. Several companies posted a double digit year-on-year volume growth for the December quarter.

“India is very strong, we had a 27 percent growth in Q4, but that’s of course lapping the demonetization. Still, we grew double-digits without that, and overall for the year India is up 12%,” Brian Gladden, CFO at Mondelez, said in an earnings call. “We see a growing middle class, we still have a low per capita consumption of chocolates, and the GDP growth rates are pretty strong. So we are overall very bullish on India,” he added.

Toblerone by Mondelez

Companies expect a volume boost from price-cuts that started in July last year and were further accelerated after the GST Council dropped tax rates on 200 products, including chocolates, toothpaste, shampoo, washing powder, and shaving creams, to 18 percent from 28 percent.

February 17, 2018   No Comments

American Energy Exports to India Grow

U.S. Energy Secretary Rick Perry will visit India this month to further enhance a recently added component in bilateral ties — energy trade. Last year India bought $2 billion worth of American crude oil from the  via  India’s state-owned Bharat Petroleum Corporation Limited, Indian Oil Corporation, and Hindustan Petroleum Corporation Limited

Rick Perry

Rick Perry, U.S. Energy Secretary

The Trump administration removed regulations that had restricted oil and coal production, leading to a ramping up of fossil fuels production in the last year. “Energy is an important area to focus on to reduce the trade imbalance between the two countries. India needs a lot of energy and the U.S. has it in abundance,” pointed out Nisha Biswal, president of the U.S.-India Business Council.

Both state-owned and private sector companies in India have invested approximately $5 billion in shale assets in the U.S. Natural gas imports from the U.S. are also on the rise. “The U.S. India Strategic and Partnership Forum (USISPF) believes natural gas generation can be integrated with renewable energy to increase energy reliability and advance economic development in India and we’ve advocated for this discussion to be raised during the upcoming bilateral discussions in Delhi,” said Nolty Theriot, USISPF vice president of Policy & Advocacy.

February 5, 2018   No Comments

India Registered 379 M&A Transactions in 2017

In 2017, India’s mergers and acquisitions activity reached the second highest annual deal value since 2001, according to London based  deals tracker Mergermarket, with 379 deals worth $54.7 billion. This is only slightly less than the peak registered in 2016, which saw 421 deals worth $59.7 billion. Telecommunications, technology, and financial services were the top sectors in terms of deal value for the year.

A handshake

 

Sectors Deal Value in $ Billion
  2017 2016
Telecom 20.4 0.7
Technology 9.6 5.6
Financial Services 6.9 5.1
Energy, Mining, Utilities 5.3 17.2
Industrials, Chemicals 2.9 3.5
Pharma, Med, Biotech 1.9 3.9
Real Estate 1.8 0.3

February 2, 2018   No Comments

Western Union Launches India R&D, Tech Center

Englewood, CO-headquartered financial services and communications company, Western Union, announced the launch of its Western Union Technology Engineering Center (WUTEC) in Pune, 75 miles east of Mumbai, in the state of Maharashtra, India. The new research center will serve as Western Union’s innovation and engineering hub in the region.  It will focus on developing and building technology aimed at improving digital retail customer experiences around the globe.

“Innovation is hardwired in our DNA. As the company that invented the concept of digitizing money, Western Union is uniquely positioned at the intersection of money and technology. WUTEC India will join our other key technology centers across the world to expand the reach of our omnichannel platform, integrating our digital efforts with our iconic physical agent network to serve a vast global customer base,” said Hikmet Ersek, president and CEO of Western Union.

Picture of cash, calculator and laptop

“On the anniversary of 25 years of our service in India, this is a fitting start to a new chapter. We are extremely proud to have connected Indian diaspora from nearly every country in the world by enabling money movement to their families and loved ones,” added Ersek. “Over this time frame, Western Union has formalized money movement into urban, semi-urban and rural India, giving millions of consumers the assurance of receiving cash or money deposited directly into millions of bank accounts. This new tech center is the continuation of our transformation journey.”

January 31, 2018   No Comments

Private Equity Funds in India to Increase in 2018

2017 was one of the strongest years for private equity funds and venture capital investments in India, and 2018 is poised to exceed the previous year figures as more than 20 India based funds have in principle secured and closed cumulative fund raising of approximately $3 billion. 80 other companies in the process of roadshows are expected to raise an additional $15 billion. Another key trend is that promoters are willing to dilute management stakes.

Road infrastructure, consumer lending, fintech, healthcare, consumer goods and disruptive technologies will continue to attract strong investment. There will be a lot of positive activity around IPOs, and mergers and acquisitions in 2018, specifically in the financial sector.  M&A will pick up given the amendments to the insolvency and bankruptcy codes recently passed by the parliament in India.

A case of dollar bills

The article also says that global private equity funds and strategic investors are looking to invest over $8 billion in 10-12 large  Indian  companies that are going insolvent.

January 31, 2018   No Comments