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Your daily dose of crisp, spicy financial news in 80 words.
A month has passed since the release of the e-Rupee in the wholesale segment. Today, the retail segment shall receive the digital currency through a pilot phase. The four banks that will participate in the first phase of the retail launch will be SBI, ICICI Bank, Yes Bank and IDFC First Bank.
The digital rupee shall be a cash equivalent, and won't earn any interest when in the user's wallet. It can, however, be converted to other forms and deposits.
Tata gained its prodigal airline back, and it seems intent on taking over India's skies now.✈
Tata Sons and Singapore Airlines (SIA) declared that they will merge Vistara into Air India by 2024. Post-merger, Tata Sons will hold a 74.9% stake, and SIA will be a 25.1% stakeholder in the new entity.
The merged entity, named AI-Vistara-AI Express-AirAsia India Pvt Ltd (AAIPL) will be worth around $1 billion with SIA investing $250 million in the entity.
While experts may claim that the Indian economy will come out of the possible global recession unscathed, the various startups in India sing a different song.
The company behind media and news aggregator platforms Josh, PublicVibe and Dailyhunt, VerSe Innovations, is set to lay off 150 employees. This layoff will compromise 5% of the company's current workforce. The company is also going to be reducing salaries by 11% for personnel with annual incomes above ₹10 lakh per annum.
Apple's manufacturing partner, Foxconn, is looking to hike employee salaries by up to $1,800 to retain them amidst violent protests in China against the rising Covid threat. Foxconn reported around 20,000 employees leaving after the protests.
Due to Apple's dependence on a single point of production, the phone manufacturer has warned customers of reduced shipments. As the peak holiday season approaches, this fall in sales is expected to cut Foxconn's iPhone revenue by 36% and overall sales by 20%.
No Bullets posted in this week.
Paytm might be losing the game as a payment aggregator, but it's banking its hopes on loans now.
While the fintech company's history has not been the greatest since it was listed, its loan distribution network has scaled up to reach 3.4 million loans disbursed during October 2022 worth ₹3,056 crore. The number of loans experienced a Y-oY increase of 161%, and the value rose by 387% Y-o-Y.
Merchant payments volume rose by 42%, reaching ₹1.18 lakh crore for October.
Zomato shareholders might finally experience an end to the bitter taste left by the food-delivery company in their portfolios. Zomato experienced a 62% YoY increase in its operating revenue reaching ₹1,661 crore for the last quarter ended September 2022.
The company's Total Adjusted Revenue (Revenue from Operations+Delivery Charges), jumped by 48% YoY to reach ₹2,107 crore. At an average exchange rate of $1=₹80, Zomato's annualised return crossed the $1.05 billion threshold, making the stocks climb by 15% over the week.
HUL and GSK are ending their distribution contract initiated after HUL acquired GSK Consumer in 2020 in a deal worth ₹31,700 crore. As a result of the termination, GSK Consumer's products, such as Crocin, Eno, Iodex, Ostocalcium, Otrivin, and Sensodyne, will no longer be sold by HUL.
The termination shall have a notice period of 1 year starting from November 9th, 2022.
Is HUL losing valuable products from its offerings? Or is GSK losing a strong distribution channel?
Reliance Industries Limited's wholly-owned subsidiary, Model Economic Township (MET), has started developing a Greenfield Smart City near Gurugram, Haryana. The smart city shall be developed on a property of over 8,000 acres.
MET city will be a Japan Industrial Township that will house four Japanese companies; namely, Nihon Kohden, Panasonic, Denso and T-Suzuki. Nihon Kohden is looking to build its biggest medical facility in MET city, which would be 4 times bigger than its establishment in Gujarat.
Edtech is in for a bitter lesson. Unacademy has decided to fire 350 employees in the second round of layoffs as it struggles to maintain its financial health.
Citing financial shortfalls, the edtech platform implemented pay cuts for management and employees as well as scaled-down operations by stopping global test preps, complimentary meals etc.
“We need to keep optimising and building efficient systems for leaner and unprecedented times,” these words by the CEO do not bode well for the employees.
Reliance Retail is looking to enter the beauty and salon space by acquiring a 49% stake in the Chennai-based Naturals Salon & Spa. Naturals aims to open 3,000 stores by the year 2025, a goal that seems more achievable with this improvement in funding.
Reliance seems really bent on making its portfolio beautiful as it is reported to be in deals to acquire Indian rights to LVMH's Sephora as well as opening its first in-house fashion and lifestyle store, Azorte.💅
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