For ₹321 crore, Emami will purchase a 60% share in IncNut Digital, a player in personalized beauty.

For a cash consideration of ₹321 crore, FMCG giant Emami Ltd announced on Thursday that it has reached a final agreement to purchase a 60% share in IncNut Digital, which operates in the personalized beauty and personal care sector with flagship brands Vedix and SkinKraft.Emami stated in a stock exchange statement that it will buy the remaining shares in IncNut, a company based in Hyderabad, over the course of the next four and a half years in two tranches from the current closure at a price to be decided based on an agreed-upon matrix on future performances. "The execution of a share subscription and purchase agreement (SSPA) for acquiring a stake in IncNut Digital Private Limited was approved by the board of directors of Emami Limited at its meeting held today," the document stated. The company and its subsidiary IncNut Lifestyle Retail will become subsidiaries of Emami Limited as a result of the acquisition of the 60% stake in IncNut Digital on a fully diluted basis, subject to adjustment based on the second year of performance. IncNut is one of India's pioneers in the personalized beauty and personal care market, and both of its brands—Vedix and SkinKraft—have established robust direct-to-consumer platforms that deliver data-driven, customized haircare and skincare solutions that are tailored to the needs, profiles, and desired results. The company and its subsidiary IncNut Lifestyle Retail will become subsidiaries of Emami Limited as a result of the acquisition. One of the first companies in India to enter the customized beauty and personal care market is IncNut. Both of its brands, Vedix and SkinKraft, have developed robust direct-to-consumer platforms that offer data-driven, customized haircare and skincare solutions catered to specific customer needs, profiles, and desired outcomes. These platforms are built on a foundation of data-driven personalization and scientific formulation.  

Advertisement rates may see correction following Disney-Reliance merger

While the Disney-Reliance  merger will rejig ad rates, experts are unsure if this is necessarily a bad thing. Advertisers are worried that the merged-co would rack up ad rates indiscriminately, especially as they wield a monopoly in live sports and linear programming. However, others argue that this is necessary course correction as far as pricing is concerned. Especially as the current ad rates are deemed too low to recover content costs for broadcasters and streaming firms. Right after the merger was announced, a report by UBS predicted that ad rates will rise by 20-25 per cent across the board. “Bargaining power of the broadcasters (now fewer and larger) would increase at the cost of the advertisers. There would also likely be some rationalization in content costs as well, leading to industry-level margin improvement,” analysts at UBS said in a note. Reacting to the merger, international advertising firm dentsu emphasised the need for 2-3 strong players in the media market to keep ad rates in check. “For the advertising and marketing sector, this presents a dual prospect of opportunities and challenges. On the positive side, it unlocks fresh possibilities for crafting and deploying innovative and compelling campaigns across an extensive and diverse portfolio of channels and platforms, providing us with extensive reach. However, it also heightens competition and enhances the negotiating power of the newly merged entity, enabling it to exert greater control over pricing and inventory. I hope that in the coming years, the merger achieves a balanced outcome. It’s crucial to maintain two or three major players in the market to foster a healthy and competitive environment, which ultimately should serve the end consumer,”  Harsha Razdan, CEO, South Asia, dentsu, explained. On the streaming front, a Disney-Reliance merged co might not necessarily wield a definitive monopoly, as Netflix and Amazon Prime will be able to hold their own against the merged entity. But the same cannot be said about live sports and linear programming according to Santosh N, Managing Partner at D&P Advisory. “Ad rates will certainly go up for sports and linear TV, but that might not necessarily be a bad thing. Moreover, Disney-Reliance cannot increase the rates indiscriminately, especially because advertisers will simply opt out, given that they have many alternative mediums for advertising.” “The coming together of Reliance and Disney will create a very large and dominant player on the supply side. But we conveniently forget that the demand side has always had a very large and dominant Group M with a 50%+ market share. So a strong media entity will now balance the scales. Interesting times ahead!,” Sandeep Goyal, Chairman, Rediffusion, said.      

Uday Shankar to be VC of merged Reliance-Disney media business: Report

Former Walt Disney executive Uday Shankar will be named as vice chairman of the board following a merger between the India media assets of Reliance Industries and Disney, two sources familiar with the matter told Reuters.Reliance and Disney are expected to make a formal announcement on Wednesday after signing a binding pact. Shankar is set to take a stake of around 9% in the new merged entity, Reuters reported in February. Reliance and Disney each have a streaming service and 120 television channels between them and the deal is expected to strengthen Reliance's hold over India's $28 billion media and entertainment market. Reuters on Tuesday reported that the new entity is likely to have Nita Ambani, wife of Indian billionaire Mukesh Ambani, as chair of the board.  

Reliance, Disney sign $8.5 bn deal to form JV, to merge media ops in India

India's top conglomerate Reliance Industries and Walt Disney on Wednesday announced the merger of their India TV and streaming media assets, creating an $8.5 billion entertainment juggernaut far ahead of rivals in the world's most populous nation.Reliance, led by Asia's richest man Mukesh Ambani, will inject $1.4 billion in the merged entity, with the company and its affiliates holding a more than 63% stake. Disney will hold about 37%, the companies said in a joint statement. For Disney, the merger follows its long-drawn struggle to arrest a user exodus from its bleeding India streaming business and financial strain caused by billions of dollars in Indian cricket rights payments, in another example how foreign businesses can struggle to grow in India.  The merger values the India business of the US entertainment giant at just around a quarter of the $15 billion valuation when Disney acquired it as part of its Fox deal in 2019, sources have said.The companies said the transaction values the merged venture at around $8.5 billion on a post-money basis. They did not explain how they arrived at such valuation.  Together, the Reliance-Disney merged entity will have 120 TV channels and two streaming platforms, helping Ambani eclipse rivals such as Japan's Sony, India's Zee Entertainment and Netflix in the country's $28 billion media and entertainment sector. Reliance said Nita Ambani, wife of Reliance boss Mukesh Ambani, would chair the board of the combined entity, and former top Disney executive Uday Shankar would serve as vice chair.  "The JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment," the companies said in a joint statement. The deal comes when Disney is facing pressure globally to streamline its businesses. Bob Iger returned as Disney chief executive in November 2022, less than a year after he retired, and has since restructured the company to make the business more cost effective.    

NCLT approves Hinduja Group’s resolution plan for Reliance Capital takeover

National Company Law Tribunal has approved IndusInd International Holdings’ resolution proposal for the acquisition of Reliance Capital. The Hinduja Group company has been given 90 days to implement the resolution, subject to regulatory and other approvals.“The RBI and SEBI approvals are expected to come by next week or so but the IRDAI application is in the process of being filed and might take some time,” sources told businessline. The NCLT application was made by RCap administrator Nageswara Rao Y, who took charge of the company in November 2021 when RBI superseded the erstwhile board of directors and initiated insolvency proceedings against the company. The CoC was constituted in December 2021 and met a total of 49 times starting January 2022, before the final proposal was submitted to the NCLT for its approval. “The resolution plan provides for the implementation of the terms thereof within a period of 90 days from the approval of the Resolution Plan by the Adjudicating Authority and receipt of certified copy of the order approving the Resolution Plan,” the NCLT notice said, adding that the 90-day timeline may be extended if required. IndusInd International has submitted a proposal that includes upfront cash payment of ₹9,650 crore, accounting for 37.03 per cent of the initial amount claimed. The company has also proposed an amount net of ₹50 crore for the benefit of the CoC, which will be part of the upfront cash and an additional Rs 11 crore over and above the proposed amount. On successful completion of the resolution plan, the Hinduja Group will acquire majority shares in Reliance Capital and the company will cease to be listed on stock exchange. Existing shareholding of the company will be cancelled and new shares will be issued to the companies nominated by Hinduja Group. The proposed acquisition is now awaiting the approval of the RBI for Reliance Capital and Reliance Asset Reconstruction,  Company Limited, IRDAI for Reliance General Insurance and Reliance Nippon Life Insurance, CCI for the takeover, and SEBI for Reliance Securities and other entities. The deal is also subject to sale of shares of Reliance Home Finance held by Reliance Capital in the open market on various dates.      

AIUBEA’s General Secretary N Shankar

The merger of public sector banks signals the initial step towards privatization and potentially leads to its acquisition by foreign entities, according to N Shankar, the general secretary of the All India Union Bank Employees Association.Criticizing the lack of clarity in Parliament regarding the rationale behind these mergers, he said the amalgamation of public sector banks is driven by clear political agendas.  While labour unions are actively protesting against further mergers, the central government appears inclined to pursue its policies of merger, especially in the lead-up to the Lok Sabha elections, he said. Shankar was speaking at the inauguration of the 37th state conference of the Union Bank of India Employees Union in Kochi.The state conference gains significance as it is the first to be held post the merger of Union, Andhra, and Corporation Banks. C Ananthakrishnan, President of the Union Bank Employees Union (Kerala), presided over the conference. The conference’s delegate session highlighted the staffing challenges faced by bank branches across the country and criticized management’s reluctance to appoint sub-staff/part-time sweepers, despite government directives. B Ramprakash, general secretary, All Kerala Bank Employees Federation, inaugurated the session.Additionally, the escalating issue of non-performing assets, reaching ₹4.28 lakh crore, drew condemnation, with the delegate session accusing the central government of inaction. Amidst these challenges, the conference celebrated Union Bank of India’s achievement in surpassing its business target of ₹19 trillion and called for collective employee cooperation to achieve the ambitious goal of ₹21.5 trillion business by the end of the first quarter in March 2024.    

Railways plans to take over debt-ridden RINL’s forged wheel plant

New Delhi, Feb 24 The Railways has emerged as the likely front-runner for takeover of the Rae Bareli forged wheel unit of Rashtriya Ispat Nigam Ltd (RINL), officials involved in discussions told businessline. While the Railways has agreed “in-principle” to take over the unit and ramp-up capacities, discussions are on regarding the “consideration” for such a “transfer”. The proposal is likely to be placed for Cabinet approval “soon”, officials across the two ministries said. There could be an outright purchase, or an outsourcing agreement (payment made depending on production basis), or “any other form of agreement, details of which are being finalised”. RINL’s forged wheel plant at Uttar Pradesh has already seen an investment of over Rs 2,250 crore. The plant has an installed capacity of 80,000 forged wheels annually, and was commissioned in 2021. Although initial orders for around 2,000 wheels was delivered in FY23, “the plant is unable to operate at full capacity for several reasons” it was noted at internal meetings across ministries. It was also held that the company does not have the requisite expertise to ensure profitability of operations there. The Railways internal projections state that it can take up production of 40,000 units in the first phase, and by 60,000 in phase two, with the excess stock being exported in future. A turnaround of the unit is also projected in the next few years. “It is a high-cost plant simply because the forged wheel unit is unable to produce more than 10,000 units annually (on a run-rate basis). But, as numbers increase, there will be economies of scale. Some investments could also happen in the coming days,” an official said. While piecemeal disinvestment of the forged wheel unit is expected to help bring down debt levels at RINL, which stood at Rs 20,400 crore in FY23 (as per the company’s annual report), a takeover by the Railways will help the Ministry bring down its annual import bill. Indian Railways has been importing various types of forged wheels required for locomotives and coaching stock (LHB) since the 1960s from the UK, the Czech Republic, Brazil, Romania, Japan, China, Ukraine and Russia. Due to the Russia-Ukraine crisis, all wheel import requirements are being met from China, sources said. In FY23, 80,000 wheels, estimated at Rs 520 crore, were imported from China & Russia, with the remaining 40,000 being sourced from SAIL, which supplies at an average rate of Rs 1,87,000 per tonne.  

Best Havells fans: Upgrade to modern models this summer with top 7 picks

As the mercury climbs and summer makes its presence felt, it's the opportune moment to consider upgrading your cooling solutions. Havells, a brand synonymous with reliability and quality, stands at the forefront of providing innovative air circulation options to beat the heat. With an extensive line-up that spans from classic ceiling fans to those equipped with remote controls, Havells fans caters to diverse preferences and needs, adding a contemporary flair to any space. This article will highlight the top seven Havells fans, carefully selected to enhance your home's comfort and style this summer. Whether you're drawn to the timeless elegance of traditional ceiling fans or seek the convenience and sophistication of remote-controlled models, Havells offers something for everyone. Dive into our selection to discover how you can bring a breath of fresh air into your home, combining functionality with aesthetic appeal. Havells fans not only promise efficient cooling, but also aim to complement your home decor, making them a smart addition to your summer readiness checklist. The Havells Ambrose Decorative BLDC ceiling fan combines elegance with functionality, making it a must-have for those seeking both style and energy efficiency. This 5-star rated fan is equipped with an energy-saving BLDC motor and comes with a remote control for convenience. Its ECO ACTIVE technology ensures lesser power consumption, while the built-in voltage stabilization guarantees consistent performance even at lower voltages. The wider blades offer better air delivery, and the RF type remote control operation enhances user experience with all-direction sensing. However, the premium features come at a higher price point, and the fan's decorative aspect might not blend with all interior designs.  

India M&A activity jumps 78% to touch $6.3 billion in January 2024

After hitting a three-year low in 2023, India-involvement announced M&A activity came back in January 2024, jumping 78 per cent in deal value to touch $ 6.3 billion ($ 3.6 billion), the latest LSEG Deals Intelligence data showed. Deal value in January 2024 was led by telecommunications, industrials and consumer staples. However, the number of M&A deals for the month under review saw a 48 per cent decline to 137 in January 2024 from 263 in January 2023. The latest M&A activity in value terms is a strong start since January 2022, when deal value had touched a four-year high of nearly $10 billion. M&A activity fell to a three-year low in 2023 at $83.8 billion in 2023, down 50.6 per cent from a year ago. In 2022, the total M&A activity stood at $169.70 billion and $123.14 billion in 2021. Elaine Tan, Senior Analyst at LSEG Deals Intelligence, said, “At least two deals above $ 1 billion from the telecommunications and infrastructure sectors kicked off the start of the year in 2024. This was unlike the start of 2023, where no deal above $ 1 billion was announced until the second quarter of 2023”. Despite uncertainty due to lingering macroeconomic and geopolitical challenges, several factors underline cautious optimism as one enters 2024, according to Tan. The expectations for lower interest rates in 2024, the use of M&A to accelerate the adoption of technology and technology-enabled processes, energy transition and decarbonisation, pressure to deploy capital, and corporate portfolio transformation to address supply chain and reduce reliance in one country are just some of the potential drivers that could drive activity in India, Tan added. “However, the upcoming elections in India as well as the US could still temper deal making in the short term”, Tan said. By value, India-involvement deals targeting telecommunications accounted for 39.7 per cent of the market share worth $ 2.5 billion in January 2024, up 697 percent from a year ago. Industrials captured a 20.6 per cent market share worth $ 1.4 billion, more than a five-fold increase compared to January 2023. In 2023, India-involvement M&A witnessed a record number of deals with more than 2600 transactions announced. This is the busiest annual period by number of announced deals involving India since records began in 1980, according to LSEG Deals Intelligence.  

UST acquires Australian process transformation company Leonardo

Digital transformation solutions company UST has acquired Leonardo, a business process improvement, automation, and integration services provider in the Australia and New Zealand (ANZ) region. This will help Leonardo expand its reach and enhance its service offerings by combining its process expertise with UST’s technology leadership, digital transformation capabilities, and global credentials. UST has served clients across industries in this market for eight years, providing solutions focused on customer experience and operating model design, product engineering and organisational efficiencies through process transformation, Gen AI and data services, SaaS, cloud, intelligent automation, and cyber security solutions. Leonardo strengthens the organisational efficiency offering by bringing on board its expertise, client references, and local partnerships, a UST spokesperson said. Headquartered in Melbourne, Leonardo’s 70+ team has a presence across key Australian cities and joins UST to strengthen the combined capability of delivering comprehensive digital solutions at scale throughout the ANZ region. A trusted partner of Red Hat, Software AG, Automation Anywhere, Workato, and UiPath, Leonardo has made a mark by driving comprehensive intelligent process improvements using cutting-edge technology. It traces its origins to a humble Brisbane home in 1999 and has since extended its presence across Melbourne, Sydney, and Perth. Stephen Chetcuti, Chief Executive Officer, Leonardo, said joining UST is a significant milestone. “Our partnership opens up a realm of new possibilities. It signifies our commitment to growing alongside our customers, providing them unparalleled digital solutions, and harnessing the power of AI to unlock new levels of productivity and insight into their business.”  

Capital One to Acquire Discover in $35.3 Billion Deal

Capital One announced Monday that it would acquire Discover Financial Services in an all-stock transaction valued at $35.3 billion, a deal that would merge two of the largest credit card companies in the United States.Capital One announced on Monday that it would acquire Discover Financial Services in an all-stock transaction valued at $35.3 billion, a deal that would merge two of the largest credit card companies in the United States. “A space that is already dominated by a relatively small number of megaplayers is about to get a little smaller,” said Matt Schulz, chief credit analyst at LendingTree. Capital One, with $479 billion in assets, is one of the nation’s largest banks, and it issues credit cards on networks run by Visa and Mastercard. Acquiring Discover will give it access to a credit card network of 305 million cardholders, adding to its base of more than 100 million customers. The country’s four major networks are American Express, Mastercard, Visa and Discover, which has far fewer cardholders than its competitors. But consumer advocates pushed back on the possible deal, saying it posed antitrust concerns. “It is very difficult to imagine how federal regulators could allow Capital One to buy Discover given the requirement that mergers benefit the public as well as insiders,” Jesse Van Tol, the chief executive of the National Community Reinvestment Coalition, said in a statement.  

Mitsubishi to pick up 32% in TVS Mobility’s new arm

The investment is intended to develop comprehensive mobility solutions spanning after-sales service and multi-brand sales, besides leasing and other operations TVS Mobility and Japan-based Mitsubishi Corp are to enter into an agreement under which Mitsubishi Corp will pick up close to one-third stake in a new company, a spin-off of the business of the former. Mitsubishi Corporation has agreed to subscribe to shares (about 32%) in TVS Vehicle Mobility Solutions Pvt Ltd (TVS VMS) through private placement. The completion of these transactions is subject to approval by the relevant regulatory authorities, the Japanese company said a statement. This investment is intended to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also leasing and other automotive operations by utilising the extensive customer base and digital technology of TVS Mobility’s arm, it added Mitsubishi had invested in TVS Automobile Solutions (TASL), a network of roughly 700 service centres, and partnerships with 16,000 retailers of wholesale auto parts connected through digital technology.