Business Roundup # Week 47

Business this week

Hyperloop MoU

The Maharshtra Government has signed a Memorandum of Understanding (MoU) with the Richard Branson-led Hyperloop One for a pre-feasibility study on building a hyperloop, says a report.

If the hyperloop study is positive then travelling to Mumbai from Pune could be completed in just 10 minutes. The hyperloop can hit speeds of 1,100 kmph. The study will identify probable routes.

Fat Packages For Top Jobs

Attractive salary packages are being offered by technology firms to graduates from top engineering companies in India for specialised, new age IT posts, according to a report.

The move comes despite muted hiring in the IT sector. Indian Institutes of Technology as well as top engineering colleges say that these firms, including start-ups, are offering at least 60 per cent more from last year for key IT placements.

BharatNet Deals

Top telecom firms have signed up government optic fibre network operator BharatNet to spread their wings to rural India, says a report.

The operators plan to take their high speed data services to thousands of villages in India after the Centre launched the second phase of the project which aims to connect 2.5 lakh gram panchayats by March 2019.

Zara-Malls In Tax Row

Top malls and their premium retailer Zara are at loggerheads over the payment tax on rent, reveals a report.

High Street Phoenix and National Capital Region’s Select Citywalk, Promenade and Pacific have said they will not continue with a special arrangement with the Spanish retailer whereby the malls paid half of the 15% service tax on the rent paid by Zara. They claim that with the introduction of the 18% Goods and Services Tax (GST) superseding the service tax since Zara gets input credit for the same.

Entry Charge Set

Future Group is planning to introduce an entry charge of 100-200 rupees during its five-day promotional campaign at its Brand Factory outlets from November 22-26, says a report.

However, customers can redeem the entry fee against purchases at the outlets. The store said that it was introducing the cover charge to encourage serious shoppers and bring exclusivity to their shopping experience.

Samsung Plan

South Korea-based Samsung Electronics has decided to strengthen some of its Galaxy brand smartphones to take on rising competition from China’s Xiaomi in the country, according to a report.

Samsung will focus on its J and ON series which are in the 8,000-15,000 rupees range, with new aggressive model launches which will have advanced configuration and competitive prices. The parent company is upset with the way Samsung has lost ground to Xiaomi, says the report.

KTM Eyes India Push

European motorcycle maker KTM is seeking to double its output in India, says a report.

The company, in which Bajaj Auto has a stake, is targeting a total of 1.8-1.9 lakh units over the next three to five years in India. The country will also contribute 45% of the firm’s global sales.

Aircel Defaults

Aircel has become the second telecom company after Reliance Communications to default on debt repayment obligations, reflecting the severe competition faced by smaller players in the sector, a report says.

This has led to company being downgraded by the State Bank of India. The firm is majority-owned by Malaysian company Maxis. The company has delayed its payments due its weak liquidly position.

Vadilal Blow

The promoters of Vadilal may exit the company, according to sources.

India’s oldest ice-cream maker is owned by the Ahmedabad- based Gandhi family. A family dispute was recently resolved paving the way for the promoters to sell their stake. The promoters hold about 65% of the stake. The eight-decade-old Vadilal has appointed Lincoln International to seek potential buyers.

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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