Business Roundup #Week39

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Xiaomi Enters Consumer Finance Sector

Xiaomi is entering into the consumer finance and business-to-business lending by floating a non-banking financial company (NBFC), according to a report.

The Chinese smartphone and electronics major said in its latest regulatory disclosure that the new company, Xiaomi Financial Services India, will soon seek the Reserve Bank of India’s approval to operate as an NBFC.

Xiaomi Financial Services plans to provide loans to consumers for purchasing electronics, home appliances, lifestyle products, vehicles, furniture, tools, utensils and office equipment, and give credit to firms, corporates or any other entity “for the purpose of purchase and acquisition of goods, merchandise, assets of any nature”, according to the Chinese firm’s disclosure.

Paytm Boosts UPI Payments

Digital payments major Paytm has set aside Rs 200 crore to promote unified payments interface-based (UPI) transactions this festive season, says a report.

According to a senior company executive, the company has more than 33% market share in UPI payments, and with its marketing initiatives, it aims to position Paytm UPI as the leading payments and gifting solution.

The company hopes to promote UPI as a mode for instant funds transfer as well.

Fare Discounts May Hit Airline Margins

Airfares for the upcoming Dussera season and thereafter are at a five-year low, leading to a bonanza for flyers, but the soft pricing in the peak festival season could dent margins at Indian carriers, says a report.

The airlines are already battling rising jet-fuel costs, stiff competition, and capacity addition beyond existing demand. “Yields will be much weaker than last year on most routes due to excessive capacity addition, and slowing economy/less willingness to spend money,” said a senior executive at a leading Indian carrier.

He added that yields are the weakest “since at least 2013” and that revenue per average seat kilometre would be down by as much as a fifth.

Lenovo Eyes Comeback With Flipkart Deal

Chinese handset maker Lenovo is eyeing a comeback into the Indian smartphone market as an online-exclusive brand through a tie-up with ecommerce major Flipkart, says a report.

“The Indian market was getting more challenging with the entry of new players, so we decided to work on our long-term strategy for the Indian market and to get back the credibility for the Lenovo brand,” Edward Chang, head, Lenovo Mobiles division, said.

The handset and PC maker had earlier softened focus on its Lenovo-branded phones from the Indian market following intense competition from Chinese peers like Xiaomi, Oppo and Vivo. However, Lenovo continued its Motorola brand which has been active in both online and offline channels.

IT Companies To Hire Senior Executives

IT services companies are looking to boost the number of senior executives who can sell their services to a growing number of clients who are assigning such work to in-house units based in India, according to a report.

Companies are increasingly using their global in-house centres (GIC) or setting up such units to handle their IT requirements, taking away work from IT services companies and cutting their revenues.

But as new GICs – also called captives – are built and older ones scale up and focus on newer technologies, there is still work potential for third-party providers.

Hyundai To Bring Back Santro

India’s second largest manufacturer Hyundai, will be bringing back its popular hatchback Santro later this month, says a report.

It expects to capture a 25% market share in the mid-compact segment with it. The company will launch the car for the global market on October 23.

They are currently one of the best car manufacturers to buy shares in because they have seen a lot of growth in recent years and their affordable prices make them a popular pick of some of the other major brands. In a first for Hyundai, Santro will offer in-house automated manual transmission or AMT technology and will also come with a factory fitted CNG variant.

Volvo Eyes Smaller Cities In India

Swedish luxury car maker Volvo is eyeing prospective customers living in the smaller metros and tier-two cities in India as it bids to double its market share in the country to 10% by 2020, says a report.

Volvo Cars, owned by Chinese carmaker Geely, now plans to increase its dealership network with a focus on smaller cities.

Volvo Cars has already opened showrooms in Noida, Indore, Raipur and Kozhikode, and plans to open dealerships in Hubli, Thiruvananthapuram and Rajkot.

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Babu Kalyanpur

Babu Kalyanpur, ( Consulting Editor) has rich experience in both sports and business journalism. Babu has led news desks in Pune and Bahrain and writes extensively on his passion, sports and business besides current affairs and matters of importance to Pune.

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