WHAT HAPPENED LAST WEEK Sectors at a glance

16th December – 22nd December 2018 What is inside this week’s newsletter?

Auto & Aviation - Chirag Goyal Mahindra announced to launch XUV300 in compact SUV segment

Real Estate, Infrastructure & Cement -Arpit Daga & Akshit Batra No relief on cement under GST Council tax rate cuts

Pharmaceuticals -Dixit Sambyal Aurobindo gets approval for Potassium Chloride pills in US

IT & Telecom - Gaurav Patole Wipro acquired Australian based firm, Syfte

Metals & Mining - Siddharth Toshniwal Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels

Banking - Sarthak Krishna Increase of 25% in corporate loan book of Kotak Mahindra Bank

Chemical And Paints - Payal Jhawar and Sukriti Hatgaonkar The ONGC Board has approved a buyback of worth ?4022 crore What is inside this week’s newsletter?

FMCG - Shruti Kajaria ITC Pilots the Rice market with ‘Sona Masoori’

Textiles & Retail - Anoop Krishnan K Union Minister for Textiles, said that the ministry has been striving hard for providing a conducive policy environment, to facilitate setting up of newer units through newer initiatives and schemes

Consumer Durables - Prateek Singhal GST Council cuts rates on TVs, movie tickets; cement, ACs left untouched

NBFC - Aashpreet Giddey BSE received Sebi's permission to increase trading hours by an hour in the commodity derivatives segment w.e.f December 31, 2018

Auto Ancillary - Suraj M GST Council likely to slash tax rates on automobile tyres to 18%

Ports And Logistics - Snigdha Baidya Top level organisational changes at Delhivery AUTO & AVIATION to deploy 500 EVs in partnership with Zoomcar By Chirag Goyal Tata Motors, in partnership with Zoomcar, announced the launch of the first batch of Tigor EV. As part of this partnership, the two companies plan to deploy 500 electric vehicles in 20 Indian cities next year. Tata Tigor EV is now available on the self-drive rental platform offered by Zoomcar. Last year, Zoomcar also deployed Mahindra's e2O plus in Mysore, and . Tata and Mahindra are currently the only companies producing electric in . The two companies won part of the 10,000-unit tender for electric vehicles launched by EESL in 2017. Tata Motors to deploy 500 EVs in partnership with Zoomcar

Powertrain (drivetrain): The combination of the engine, transmission, driveshaft, Mahindra announced to launch XUV300 in compact SUV segment differential and axles that deliver power to the wheels. Mahindra and Mahindra, the country's third-largest automaker, have announced their next product, the XUV 300, which will be included in the fast-growing and highly competitive compact SUV segment. This product has been developed from the beginning taking into account the characteristics of the XUV 500. The XUV 300 will be manufactured at the company’s Nashik Plant. At its launch, Mahindra plans to sell at least 5,000 units of the every month. This will be the third new product Mahindra brings to the market during this fiscal. Mahindra announced to launch XUV300 in compact SUV segment AUTO & AVIATION Ashok Leyland to offer mobility solutions to global OEMs By Chirag Goyal Ashok Leyland, the flagship of Hinduja, is in advanced talks with a select few defence players (OEMs) in the United States and Europe to offer a wide range of cost-effective mobility solutions. The company, which has been the largest provider of mobility / logistics solutions to the Indian military for more than three decades, sees tremendous opportunities, not only in India but overseas as well, given the wide offerings as well cost advantage it holds among peers. Ashok Leyland is the only player in India with experience in the design, development and manufacture of logistics vehicles, combat support HMVs, the 350 HP Neptune Engine, and armoured vehicles for defence forces. Ashok Leyland to offer mobility solutions to global OEMs Brake Caliper: The hydraulic assembly that contains the brake pads and applies them against the brake rotor to slow or stop the car. REAL ESTATE, INFRASTRUCTURE & CEMENT No relief on cement under GST Council tax rate cuts By Arpit Daga & Akshit Batra The GST council on Saturday cut tax rates on 17 goods and 6 services. The rate cuts will hit the exchequer by Rs. 5500 crore on annual basis and Rs. 1375 crore in the remaining three months of the current FY. However, the council did not slash tax on cement which was anticipated to be reduced from the current tax rate of 28%. The council stated that the tax cut on cement will hit the exchequer by approximately Rs. 130 billion. Lowering the tax rate for cement is the target and rate rationalization is an ongoing process. The tax rate slash on cement will be done when affordability improves. MNRE – Ministry of New and No relief on cement under GST Council tax rate cuts Renewable Energy,. It is headed by R.K Singh , a Minister of State-In Charge GOI sets target for installing 175 GW of renewable energy capacity by 2022 High tariffs and costly infrastructure in 2018 has mulled government to increase the share of green energy in 2019 to combat climate change. According to MNRE, a renewable energy capacity of 73.5 GW had been installed till October 31, 2018. The government has set a target of installing 175 GW of renewable energy capacity by 2022. This will comprise of 60 GW from wind, 100 GW from solar, 10 GW from biomass and 5GW from hydropower. GOI sets target for installing 175 GW of renewable energy capacity by 2022 PHARMACEUTICALS Aurobindo gets approval for Potassium Chloride pills in US Aurobindo Pharma Ltd has got the US Food and Drug Administration approval to manufacture By Dixit Sambyal and market Potassium Chloride tablets in US market. The drug will be available in 600mg and 750 mg dosages. It is used for the treatment of hypokalaemia( a condition in which the potassium level drops in the blood). The drug is the generic version of Klor-Con by Upsher- Smith’s and has an estimated market size of $60 million. Aurobindo gets approval for Potassium Chloride pills in US

Form 83: A Form 483, is issued by No USFDA observations for Biocon’s Telangana Plant the USFDA to notify a company's management of any objectionable USFDA, the US health regulator completed the inspection of Biocon’s Telangana manufacturing condition in its manufacturing plant with pointing out an observation and no Form 483* was issued. The inspection was carried facility. The form is issued after out from 12th to 14th December to check the manufacturing practices of the active completing the inspection. pharmaceutical ingredients manufacturing facility. No USFDA observations for Biocon’s Telangana Plant PHARMACEUTICALS Glenmark Pharma gets USFDA approval for ear drops

By Dixit Sambyal Glenmark pharma received the final approval from USFDA to market Fluocinolone Acetonide Oil. It is the generic version of DemOtic Oil, 0.01 percent of Hill Dermaceuticals Inc. , used for the treatment of eczema of the ear. The oil has an annual market of $18.1 million. The company currently has a portfolio of 146 products which is approved for distribution in US markets and there are 54 pending abbreviated new drug applications (ANDAs) for approvals. Glenmark Pharma gets USFDA approval for ear drops IT & Telecom

By Gaurav Patole TCS appoints two new independent Director on its Board

Tata Consultancy Services has added two independent directors to its board, taking the total number of independent directors to six. Hanne Birgitte Breinbjerg Sorensen and Keki M Mistry will join the board on a five-year contract, subject to stakeholders’ approval. Sorseen is Aarhus University graduate in Economics and Management with professional working experience for more than two decades. Keki Mistry has been the Vice Chairman for HDFC since 2007 and has also served Torrent Power *In India, fiscal period starts Board. from 1st April and ends on TCS appoints two new independent Director on its Board 31st March. This period in which the income is earned is known as the Financial Year or Wipro acquired Australian based firm, Syfte Fiscal Year. Wipro has taken the step to increase its presence in the Australian Market. Syfte will be integrated with Wipro’s wing Designit as both of them work on same area. The focus area for both the verticals is human centred products, service and systems. Wipro acquired Australian based firm, Syfte IT & Telecom

By Gaurav Patole Infosys appoints Nilanjan Roy as the new CFO

Nilanjan Roy has served in the position of CFO for Airtel previously. He served Airtel for 13 years before moving to IT industry. He has been appointed the CFO role replacing Infosys’ interim CFO, Jayesh Sanghrajka, making Roy the first outsider to hold the post of Infosys CFO. The most important point to note from investor point is that he is the 3rd CFO in three years. Infosys appoints Nilanjan Roy as the new CFO METALS & MINING NCLT approves JSW Steel’s plan for VIL

By Siddharth Toshniwal NCLT New Delhi has given its nod to JSW Steel’s plan as approved by the CoC of Vardhaman Industries Ltd. (VIL), which is under Insolvency & Bankruptcy Code,2016. JSW Steel shall infuse Rs.63.5 crores either by equity or debt within 30 days of the NCLT order. Of this 63.5 crores 62.5 crores would go to the financial creditors & the operational creditors would receive the balance Rs.1 crore for settlement of existing debt of VIL. As per the IBC,2016 liquidation value payable to shareholders after paying off of dues is nil, therefore entire share capital of VIL shall be reduced to nil w.e.f from effective date. NCLT Delhi approves JSW Steel’s plan for VIL IBC - Insolvency and Bankruptcy Code,2016 - The Insolvency and Bankruptcy Code, 2016 is the bankruptcy law of India which seeks to Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels consolidate the existing framework by creating a single Sarda Energy & Minerals is in talks with Hong Kong based SSG Capital Management to acquire law for insolvency and distressed companies- Uttam Value Steel & Uttam Galva Metallics. The two companies together bankruptcy. owe Rs. 5,400/- crore to lenders . Sarda Energy is based in Raipur with a 20 MT iron ore mine in Rajnandgaon. It specializes in making niche grade manganese based ferro alloys. Other bidders for Uttam group companies include JSW Steel, Liberty House, Aion Capital, Pheonix ARC. The deadline for final bids was 21st December, 2018. Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels METALS & MINING Vedanta to move to Supreme Court against Madras HC order on Sterlite copper By Siddharth Toshniwal plant: CEO

The Vedanta group would move to Supreme court to implement the NGT order to reopen the Sterlite Copper plant in Tuticorin. The Madras high court has asked the Tamil Nadu government to clear its position on whether it wants to file an appeal against the NGT order by 21st January,2019. On December 15, the NGT had set aside the Tamil Nadu government order for closure of the Sterlite copper plant at Tuticorin, which was at the centre of massive protests over alleged pollution, saying it was "non-sustainable" and "unjustified." NGT – National Green Tribunal Vedanta to move to Supreme Court against Madras HC order on Sterlite copper plant: CEO is responsible for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto. BANKING SECTOR Increase of 25% in corporate loan book of Kotak Mahindra Bank By Sarthak Krishna

Owing to issues like NBFC crisis, cap on lending by almost half of the PSB’s, private sector bank Kotak Mahindra has revised its targets for corporate lending from 15-20% growth to 20-25% growth. However, the bank will remain choosy as it itself is being brought down by the high NPA of ING Vysya which it acquired last year. Increase of 25% in corporate loan book of Kotak Mahindra Bank

24% rise in farm loan NPA after loan waiver promises made

Anticipating loan waivers from the government, farmers in MP have stopped making payments for the loans they took, resulting in 24% increase in the NPA. This also has led to slow loan growth of banks as they are waiting for reimbursements from the government, which may take up to several years. 24% rise in farm loan NPA after loan waiver promises made CHEMICALS AND PAINTS ONGC approves ₹4,022 crore share buyback By Payal Jhawar and Sukriti Hatgoankar The ONGC Board has approved a buyback of worth ₹4022 crore. It will repurchase 25.29 crore scrips about 1.97% of equity at ₹159 per scrip. The government has been persuading the cash- rich public sector undertakings (PSUs) to use their funds to buyback shares or pay a higher dividend, to achieve its fiscal deficit target of 3.3% for 2018-19. Earlier last week, the Indian Oil corporation announced to buy 29.76 crore shares for about ₹4436 crore. The government is expected to take part in each of these share buyback programmes. The Department of Investment and Public Asset Management (DIPAM), has set a target to raise ₹80,000 crore for *Share buyback: It is the re- the government through stake sale in PSUs, had prodded all cash-rich PSUs to go for share acquisition by a company of its buybacks. According to it, PSUs having a net worth of at least Rs 2,000 crore and a cash balance own stock. It reduces the of more than Rs 1,000 crore have to mandatorily go in for share buyback. outstanding shares of the ONGC approves ₹4,022 crore share buyback company in the open market. Mangalore Chemicals spikes as promoter releases pledge

The promoters of the company have released a pledge on 80 lakh shares of Mangalore Chemical and Fertilisers Limited (MCF). The company's promoter Zuari Agro Chemicals Limited released 80 lakh shares pledged with HDFC for repayment of a loan on December 7. MCF is the subsidiary of Zuari Agrochemicals which holds a 53.03% stakes in the company. Recently, CARE Rating agency revised the rating of the company's Long-term/ Short-term Bank Facilities to the CARE BBB+; Stable / CARE A3+ from the CARE BBB; Stable / CARE A3. The stock is buzzing and has moved up by 3% Mangalore Chemicals spikes as promoter releases pledge FMCG

By Shruti Kajaria ITC Pilots the Rice market with ‘Sona Masoori’

ITC made a quiet entry into the Packaged, Non-Basmati Rice Market with the ‘sona masoori’ rice brand in Bengaluru. ‘Sona Masoori’ is a fine non-basmati variety consumed mainly in South India, and grown in the Tungabhadra Belt of Karnataka. It plans to leverage it’s pre- existing widespread distribution network to venture into the rice market which is characterised by tough competition from players like, KRBL, LT Foods, Kohinoor and Patanjali. ITC plans to start this pilot run in Bengaluru, with 25kg packs, offering free home delivery at a Pilot Project is a small scale price of Rs. 1400 per bag. Sources reveal ITC’s presence in the rice export market to some preliminary study conducted African and West Asian Markets, which suggests that it has its procurement and logistics to evaluate the feasibility, network in place. time, cost, and adverse events, ITC Pilots the Rice market with Sona Masoori to improve upon the design and performance prior to the full-scale launch. TEXTILES & RETAIL

By Anoop Krishnan K India should focus more on export to SAARC countries: Suresh Prabhu

Union minister of Commerce & Industry, Suresh Prabhu said that India is not utilizing its full potential in exporting and cooperating with neighboring SAARC countries like Bangladesh and Sri Lanka. He also added that these countries have become integral part of the global value chain and the ministry is involved in supporting the industry in exports by creating new policies, improving Ease of Doing Business (EoDB), scrapping irrelevant regulations and formulating the concept of growth of GDP in every district of the country. The Minister believes that the country needs to target on maximizing local value add and explore newer avenues for expanding their target markets. India must increase exports to SAARC countries: Minister

Textile Ministry focusing on ensuring conducing environment

Smriti Irani, Union Minister for Textiles, said that the ministry has been striving hard for providing a conducive policy environment, to facilitate setting up of newer units by private entrepreneurs through newer initiatives and schemes. She also highlighted that the ministry is working hard towards providing more opportunities for employment, production and exports. The ministry is also planning to focus more along the promotion of technical textiles. Textiles ministry ensuring conducive environment CONSUMER DURABLE GOODS GST Council cuts rates on TVs, movie tickets; cement, ACs left untouched By Prateek Singhal The GST council has announced to cut rates on 23 items. The cuts will be imposed from Jan 1 of next year. Monitors and TV screens up to 32 inches and power banks will attract 18% GST, as against 28% earlier. The rates have been kept constant for goods like tobacco, aerated drinks, and automobile and auto parts, generally considered as luxury goods. Also, the GST on the supply of gold by Nominated agencies have been exempted which was done to exporters of articles of gold jewelry. The consumer durabe is GST Council cuts rates on TVs, movie tickets; cement, ACs left untouched expected to increase at a 9 per cent CAGR to reach Rs 3.15 trillion (US$ 48.37 billion) in 2022 Micromax strengthens international play, to foray into South Africa

Micromax is foraying in the South African market to bolster its international presence. After facing competition from the Chinese brands like Vivo, Xiomi and Oppo in the Indian market it has decided to take such action. The company is confident of getting a contribution of about 20% revenue from this market by next fiscal. Micromax strengthens international play, to foray into South Africa NBFC

By Aashpreet Giddey BSE gets SEBI's approval to increase trading hours in commodity derivatives BSE received Sebi's permission to increase trading hours by an hour in the commodity derivatives segment. The extended timing will be effective from December 31, 2018. For non-agricultural commodities, the revised timings would be from 9 am to 11:30/ 11.55 pm. For agricultural commodities, the trading hours would be from 9 am to 9 pm. The BSE marked its entry into the commodity derivatives segment with gold and silver contracts on October 1, 2018. This was done in order to deepen the commodity derivatives market as well as enhance the participation of stakeholders and hedgers. Extended trading hours will encourage hedgers, corporate, institutions and foreign investors to use exchange traded Liquidity crisis occurs when commodity derivatives as a preferred hedging platform. Commodity trading on the BSE has been the otherwise solvent business gaining momentum as the transaction charges have been waived for one year. does not have the liquid BSE gets Sebi's approval to increase trading hours in commodity derivatives assets (i.e., cash) necessary to DHFL To Sell Entire Stake In Asset Management JV to Pramerica meet its short-term obligations, such as repaying In the wake of a liquidity crunch in NBFC and HFC space, Dewan Housing Finance Corporation its loans, paying its bills and (DHFL) will sell its entire stake in the mutual fund business, DHFL Pramerica Asset Managers, to its paying its employees. joint venture partner Prudential Finance. The stock gained 5 percent . DHFL currently holds a 50 percent stake in DHFL Pramerica Asset Managers (DPAM), with 17.12 percent directly and 32.88 percent through subsidiary DHFL Advisory and Investments. Pramerica Financial and DHFL have entered into a binding term sheet to acquire DHFL's stake in their 50:50 joint venture asset management company, DHFL Pramerica Asset Managers. DHFL To Sell Entire Stake In Asset Management JV to Pramerica AUTO ANCILLARIES Endurance Technologies ends Manesar plant operations By Suraj M Endurance technologies has announced closing of its Manesar plant operations with immediate effect . The move is part of the company's plan to consolidate plant operations and consequent discontinuation of manufacturing operations at Manesar, which it had announced on September 10, 2018. The company will announce a suitable compensation for all its permanent workmen employed on the rolls of the plant. The said package, to be offered, will be consistent with the industrial practices followed by the company. Endurance Technologies ends Manesar plant operations *An independent director is a director of a board of directors who does not have a material or pecuniary relationship with company or related persons, Cummins India Ltd appoints Mrs. Anjuly Chib Duggal as director except sitting fees. Mrs. Anjuly Chib Duggal has been appointed as an Additional Director (Non-executive and Independent) of Cummins India Ltd w.e.f December 19, 2018. She has worked previously in areas relating to Financial Services, Corporate Affairs, Expenditure, Foreign Direct Investment, Industry and Personnel management, amongst others. She has also ran a leadership programme in Environmentally Sustainable Development, for mid-career professionals. Cummins India Ltd appoints Mrs. Anjuly Chib Duggal as director AUTO ANCILLARIES

By Suraj M GST Council likely to slash tax rates on automobile tyres to 18%

The Goods and Services Tax (GST) Council is likely to slash tax rates of automobile tyres to 18 per cent from 28 per cent currently from its next meeting onwards. This news has already led to stock prices of tyre companies surging. This move is a part of the Indian Government’s move to rationalize items that are currently present in the 28 percent GST bracket and reduce the burden on the common man. GST Council likely to slash tax rates on automobile tyres to 18% PORTS & LOGISTICS

By Snigdha Baidya Government forming Integrated Logistics Plan to decrease logistics charges

Indian Logistics Industry is around USD 215 billion and is growing approximately at 10 percent annually. The cost of logistics of India is around 14 percent of its GDP, whereas that of developed countries is 7-8 percent. So the government is preparing a plan of integrated logistics system to cut costs and increase the pace of logistics movement, said Suresh Prabhu, Commerce and Industry Minister. This plan will integrate rail, road, air and ship. There has been disruptions in the global supply chain because of US-China trade war. This is creating large opportunities for the Indian Logistics sector and the government is planning to exploit this opportunity. Various Back Haul- The return trip of a developments in rail, road and shipping industries has already been started for the same. truck transporting cargo or Government forming Integrated Logistics Plan to decrease logistics charges freight. Top level organisational changes at Delhivery Sandeep Barasia, former joint MD at Delhivery has been designated as Chief Business Officer. He will take care of all three major profit and loss items viz parcel, warehousing and freight. Ajith Pai has been designated as COO, who was finance chief. He will lead engineering, operations, HR and finance. Amit Agrawal will assume the role of CFO. Sahil Barua, co-founder and CEO of Delhivery, rolled out the notice to all the employees. According to Barua, the changes have been made to guide the organization’s aggressive plans for 2019 and beyond. Delhivery is diversifying into other areas like cross-border, B2B logistics to decrease its dependence on e-commerce sector. Top level organisational changes at Delhivery