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RBI gives “big” booster dose
At last the RBI also felt the need for the Indian economy to receive a booster dose of cheaper loans as advocated by the finance minister and the government for quite some time. In a surprising move, the RBI on September 29 slashed its repo rate by 50 basis points to 6.75 per cent on the heels of sustained lowering inflation. This has really boosted the sentiments of the markets which celebrated this action with a robust bounce-back on September 29. Interestingly, since January 2015 the RBI has slashed interest rates thrice to cut them by 75 basis points in total, yet the industry and government kept demanding further rate cuts. This time the RBI acknowledged this demand.
While announcing its bimonthly monetary review, the RBI remarked, “Headline consumer price index (CPI) inflation reached its lowest level in August since November 2014. The ebbing of inflation in the year so far is due to a combination of low month-on-month increase in prices and favourable base effects.” As per the RBI estimate, inflation is expected to reach 5.8 per cent in January 2016 and the “knock-on effect of the recent depreciation of the rupee will have to be carefully monitored.” A big respite for the RBI is that the wholesale prices are falling more rapidly in line with the global trend due to slowdown concerns in China. Now it will be interesting to see how banks reacts to this announcement in terms of passing the benefit to the industry and common man.
Rate cut, combined with government actions, will boost economic confidence and investment: FM
Finance Minister Arun Jaitley welcomed the Reserve Bank of India (RBI)’s decision to reduce the repo rate to 6.75 per cent from 7.25 per cent. He was reacting to the monetary policy announcement made by the Reserve Bank of India in Delhi. While reiterating the government’s commitment to meet its fiscal deficit target to consolidate the gains achieved in reducing the inflation, FM said that constant vigilance is warranted on the inflation front and this action signals that inflationary pressures have moderated significantly and are within the RBI’s comfort zone.
Jaitley remarked that this action also signals the fact that the RBI is able to provide policy support to the real economy and help its recovery while the government looks forward to the transmission of these cuts to the rest of the economy. “We will work to facilitate this transmission, including through a review of the framework of small savings. Rate cut, combined with actions taken and planned by the government, will help boost confidence and investment, and help realise the economy’s medium-term potential growth rate,” he added. Further boosting the sentiments, the FM said that the Indian corporates would now be able to raise External Commercial Borrowings (ECB) through rupee-denominated offshore bonds with no end use restrictions, which will provide additional source of raising resources that would be fully hedged as they are denominated in rupees.
Steel and mines industry to brainstorm at 53rd National Metallurgist Day
India’s leading industry leaders from the steel and mines sector like SAIL, TATA Steel, JSW, ESSAR, JSPL, etc. would participate and brainstorm at the largest metallurgical conclave – 53rd National Metallurgist Day (NMD) and 69th Annual Technical Meeting (ATM), which is being organised at the industrial hub of Coimbatore in Tamil Nadu from November 13 – 16, 2015. The steel industry is currently facing tough times, braving global volatility in demand-supply and prices as well. Considering this, the conclave comes at an apt time when discussions on the Indian steel industry’s challenges, emerging technologies, etc. will prove beneficial for the industry. The ATM will focus on presentations about cutting-edge and emerging technologies. This year the event assumes greater significance in view of the thrust for ‘Make in India’, and will attract large number of professionals and students. The prestigious NMD awards shall also be presented during the conclave.
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Make in India: L&T outguns global rivals to bag Rs 5,000-crore Indian Army deal
India is finally set to get its own mobile howitzers that will reverse the longheld Pakistani battlefield edge on artillery guns. In a deal that would also fit the 'Make in India' mandate, domestic manufacturer Larsen and Toubro has emerged as the finalist for a USD 750 million (about Rs 5,000 crore) contract to supply 100 self-propelled artillery guns to the Indian Army. The 155 mm artillery guns are specially designed for operation in the desert areas bordering Pakistan and have been a longstanding requirement of the Army. L& T will be making the Vajra, which would be the first new artillery gun to be produced in India since the 1980s. Not even a single new modern system has been purchased since. Another parallel effort to procure M777 ultra-light howitzers from the US is under process. The Vajra beat its Russian competitor on several technical grounds, including rate of fire, accuracy and mobility trials.
Vivimed to sell some speciality chemicals products to Clariant
On wednesday Vivimed Labs has entered into a definitive agreement for selling some of its specialty chemical products to Clariant Chemicals (India) Ltd, a subsidiary of Switzerland based Clariant AG, for Rs 380 crore.
Acording to the management of the company, The deal will be used to reduce debts thereby saving substantial interest costs going forward. Further, it will provide increased financial flexibility to pursue profitable growth across businesses in regulated markets. The definitive agreement is for the transfer and sale of identified products along with their associated trademarks and assets within the specialty chemicals division, as part of the transaction, the company will divest certain products to Clariant Chemicals.
The division makes ingredients for haircare, home-care and industrial segments. It counts supplier to leading global brands such as Novartis, P&G, Gilead, GSK, J&J among others.
At the end of last fiscal, Vivimed Labs had Rs 1386 crore, and about 10% was contributed by the specialty chemicals business division.