Business & Finance
Business Today

Business Today 16-Dec-2018

A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

Living Media India Limited
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26 Issues

in this issue

3 min.
the $16-billion gamble

SIXTEEN BILLION US DOLLARS is a lot of money to pay to take control of an Indian company. It is $4 billion more than what Rosneft and its partners paid a year ago to buy Essar Oil with its 20-million tonne refinery in Vadinar, captive power plants, a port and a network of 3,500 petrol pumps. Essar Oil was profitable but had big debt. The Rosneft-led consortium got 98.2 per cent of Essar Oil for $12.9 billion. Similarly, all three big steel plant assets being sold in the bankruptcy proceedings currently on – Essar Steel, Bhushan Power & Steel and Bhushan Steel – are likely to fetch less than $10 billion together, once the process is complete. But Walmart was desperate enough to take control of Flipkart to pay $16 billion for…

1 min.
threatened turf

THERE IS AN UNEASY calm to the new working arrangement between the government and the Reserve Bank of India (RBI). So far, the government has dialled down its aggression and the RBI, which had gone public about the undermining of its autonomy, has also ceded some ground; they agreed to set up a committee to look into the government’s claim on surplus capital. RBI refused to budge on relaxing minimum capital adequacy requirement of 9 per cent but agreed to extend by a year, the requirement for creating a capital conservation buffer. The board prevailed on the RBI to come up with a restructuring scheme for MSMEs with aggregate loan exposure of ₹25 crore, while the government gave up its rigidity for a higher loan threshold. The main friction between the government…

1 min.
window of opportunity

AT THE MARGIN, sentiment is improving for Indian pharma, analysts say, and with good reason. Leading global players such as Teva, Mylan, and even India’s biggest, Sun Pharma, are opting out of products that aren’t commercially viable. Coupled with temporary shortages in the US market owing to regulatory challenges affecting supplies from some companies, this is opening up options for others to step in. Aurobindo Pharma has a term for it too – New Business Opportunities. And, recovery is expected in the domestic market after two years of slow growth. The domestic market growth is expected to stabilise between 10 to 12 per cent. Not surprising then that over the past six months the Nifty pharma index has outperformed the Nifty Fifty, posting growth of over 17 per cent as…

1 min.
generic boost

AFTER A SERIES of bad news hits from the US, India’s generic drug makers have finally had some good news. The US Food and Drug Administration (FDA) is coming out with clear guidelines for clearing complex generics. Ordinarily these are difficult to copy, and consequently exorbitantly priced. A recent review by the agency promised to come up with clear guidelines on scientific data and regulatory guidelines on complex generics. This is good news for Indian companies such as Sun Pharma, Lupin and others who are migrating to complex generics, branded specialty drugs, and reverse engineered biotech drugs or bio-similars. Of late, Indian companies are migrating to high value generics with less competition, instead of selling large volume low value simple generics. The FDA move will expedite approval for pending marketing applications…

1 min.
royal dilemma

A SERIES OF ‘NOT-quite-in-agreement’ meetings between the finance ministry and the ministry of commerce on royalty payment caps, and technical fees for multinational companies, ended up at the Prime Minister’s doorstep. The finance ministry earlier said companies shouldn't have to seek prior approval for royalty payment repatriation. The commerce ministry, however, has been demanding a strict system of caps be imposed after reports that royalty repatriations to parent companies abroad were very high, especially from auto companies. Finance ministry officials say a cap may deter investors, commerce ministry officials assert that the caps as suggested are within the framework agreed upon at WTO and will serve to curb forex outflow. Who the PMO finally sides with remains to be seen.…

1 min.
passenger rights

THE WAIT FOR THE air passenger charter is getting longer. Reports suggest that domestic airlines have objected to the charter’s extreme focus on passenger rights. The draft charter imposes strict penalties on airlines for delays and cancellations. It also mandates that airlines make compensation payouts for any inconvenience to passengers. With emphasis on provision for facilities such as in-flight wifi, experts argue that this may see airlines increasing fees – something that they can’t afford to do in the current climate. The other objection arises from determining the reasons behind flight delays, which are increasingly becoming common at metro airports because of congestion and, occasionally, weather conditions. Competitive air fares have made flying more accessible to the masses and also resulted in stupendous growth in domestic air traffic – 20.94 per…