Flipkart gets US$ 1 bn from Tencent, Microsoft at US$ 11-bn valuation

Bengaluru: India's largest e-commerce marketplace Flipkart has closed a $1 billion funding round with backing from Chinese Internet giant Tencent and participation from Microsoft, just two months after former Tiger Global executive Kalyan Krishnamurthy took over as CEO of the company.
This latest round of funding brings down the valuation of India's most highly valued startup to $11 billion from a previous high of $15 billion according to sources close to the development. While the round has been completed, the company has so far not disclosed any details on the investment.
Flipkart declined to comment on "market speculations" citing company policy.
Apart from the $1 billion, Flipkart is also looking at an additional $500 million investment from eBay which is in talks to merge its India entity with the company and exit the business. The investments will give Flipkart the firepower it needs to take on a fast-growing Amazon and also a potential entry into the peer-to-peer e-commerce market. Amazon owns peer to peer marketplace Junglee and has integrated its services on its main platform.
After asserting his dominance in the boardroom earlier this year and pushing for the appointment of key aide Krishnamurthy to the position of CEO, Lee Fixel has not participated in the latest funding round. After sinking over $1 billion into Flipkart, Tiger Global seems to be prepping for an exit from India's most successful startup according to one of the sources.
Flipkart is engaged in a heated battle with US-based rival Amazon in India which has committed to investing $5 billion into the country over the next few years. Before Krishnamurthy's arrival at Flipkart in mid-2016, the company suffered nearly 12 months of stalled growth that made investors jittery.
In the meantime, Amazon had grabbed a big chunk of the market at the expense of number two Indian rival Snapdeal, burning huge amounts of money on discounting products and rolling out loyalty services such as Prime. Flipkart saw some respite in the festive season sales of 2016, where it is believed to have outperformed Amazon by a large margin.
With Krishnamurthy at the helm of the company, some sense of positivity has returned at Flipkart. The latest round of funding shows the return of investor confidence, with the drop in valuation suggesting a return of sensibility in the market rather than skepticism of the company's future.
Some industry watchers are however seeing this as the second big battle in the war to dominate India's fast-growing e-commerce market. The entry of Chinese online retail giant Alibaba through a recent $200 million investment in Paytm E-commerce could challenge even Amazon's seemingly endless supply of cash.
While Flipkart seems to have built up on its war chest with the latest and planned investments, the future of Softbank-backed Snapdeal seems bleak. The company has been struggling to raise funds for itself as well as attract external funding for its digital payments arm Freecharge, despite payments being the hottest sector in India's startup space right now.

Larsen arm wins Rs 1,656 crore contract from ONGC

Mumbai: The order, which was bagged and will be executed by L&T’s subsidiary, L&T Hydrocarbon Engineering relates to ONGC’s Neelam Re-Development & B173AC projects. It entails building of one
Larsen & Toubro has bagged an offshore project order worth Rs 1,656 crore from state-run ONGC, the engineering major said in a statement Monday.
The order, which was bagged and will be executed by L&T’s subsidiary, L&T Hydrocarbon Engineering relates to ONGC’s Neelam Re-Development & B173AC projects. It entails building of one new process platform having gas processing and compression facilities, three new well head platforms, 32 km pipeline, clamp-on on three existing platforms and modification work on eight existing platforms in the Neelam Field in western offshore basin in India.
The project, part of ONGC’s strategy to enhance the field life and increase recovery of Neelam field, is scheduled to be completed by April 2019. The incremental gain from the field after implementation of project till 2034-35 is pegged at 2.76 million ton crude oil and 4.786 BCM gas, L&T said. Neelam Offshore field is situated in the Heera-Panna block in Mumbai Offshore, located at about 45 km South-West of Mumbai city.

Chinese investment under Make in India

New Delhi: Chinese companies have shown significant interest to invest in India in a wide range of sectors since the launch of Make in India campaign. As per data maintained by DIPP/RBI, between April,2000 and December,2016, cumulative FDI inflows from China were INR 9,933.87 crores. Of the cumulative FDI equity inflows, 77.9% have been received since 2014 as detailed below :-
2014-2015 : INR 3,066.24 Crores
2015-2016 : INR 2,975.14 Crores
2016-2017(till December,2016) : INR 1,696.96 Crores
An MoU between the Ministry of Commerce of the People’s Republic of China and Ministry of Commerce & Industry of India has been signed on cooperation on Industrial Parks in India on 30th June,2014 in Beijing.
Pursuant thereto, Joint Working Group (JWG) of the Indian side was constituted on 16th July,2014 to act as the nodal point to identify and agree upon the detailed modalities for implementing cooperation under the said agreement, and to periodically review progress. Three JWG meetings have so far been held. The last meeting of JWG was held on 2.11.2016 at Beijing, China. It was decided during the meeting that both sides will encourage all stakeholders to expedite the implementation for which all necessary facilitation would be provided.
Following MoUs have so far been signed between Indian State Government Agencies and Chinese Investors for development of Industrial Parks in States :-
a. MoU between Maharashtra Industrial Development Corporation (MIDC), Govt. of Maharashtra and Beiqi Foton Motors, China for Auto Industrial Park in Pune;
b. MoU between Industrial Extension Bureau (iNDEXTb), Govt. of Gujarat and China Development Bank Corporation (CDB), China for supporting the setting up of Industrial Parks in Gujarat;
c. MoU between Industrial Extension Bureau (iNDEXTb), Govt. of Gujarat and China Small and Medium Enterprises (Chengdu) Investment Limited (CSME) to set up multi-purpose Chinese Industrial Park in Gujarat;
d. MoU between HSIIDC, Govt. of Haryana and Dalian Wanda Group for development of an integrated Entertainment Park-cum-Industrial township in Haryana;
e. MoU between HSIIDC, Govt. of Haryana and China Fortune Land Development (CFLD) for development of an Industrial Park in Haryana.
This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

India seeks to jump 40 places in World Bank's Doing Business rankings

New Delhi: India is targeting an ambitious 40-notch jump in the World Bank’s Doing Business survey this year. Last year, its rank rose by just one place to 130 in the survey that measures the ease of doing business in various countries.
According to an output-outcome framework document prepared by the government, India wants to reach the 90th rank in 2017-18 and 30th by 2020.
“Better rank in ease of doing business and greater awareness about opportunities in India in manufacturing sector would lead to growth in the manufacturing sector,” the document said.
Department of industrial policy and promotion (DIPP) secretary Ramesh Abhishek said the targets are feasible.
“We are hoping to do extremely well in five categories: starting a business, construction permits, paying taxes, trading across borders, and resolving insolvency. We are already in the top 50 in three parameters out of 10. We are facing challenges in two criteria: enforcing contracts and registering property because of the complexity involved,” he said.
India was ranked within the top 50 countries in parameters such as protecting minority investors (13th), getting electricity (26th) and getting credit (44th), among the 190 countries surveyed. India’s worst rank was in dealing with construction permits, where it was placed 185th. It ranked 136th in resolving insolvency, 138th in registering property, 143rd in trading across borders and 172nd in both paying taxes and enforcing contracts.
Arindam Guha, partner at Deloitte Touche Tohmatsu, said it will be an uphill task to achieve the targets since it involves many stakeholders other than the central government.
“Government has to proactively pursue with the state governments and local bodies as well as the Supreme Court and high courts for necessary reforms. Between Delhi and Mumbai, the former has been an underperformer though the latter has picked up in recent times, especially in dealing with construction permits. This may prove to be a drag on India’s overall ranking,” he added.
This year’s budget allocated Rs272.48 crore under the scheme of investment promotion that will be spent on launching a 360 degree awareness campaign for better ease of doing business ranking and to attract investment in 25 sectors selected under Make in India.
DIPP has also involved the National Productivity Council and the United Nations Development Programme to conduct user feedback to evaluate the effectiveness of its reform measures.
To break into the top 50 in the World Bank ranking, India needs to set up fast-track commercial courts, dispose of cases quickly with minimum adjournments and establish e-courts for electronic filing of complaints, summons and payments, a government official said on condition of anonymity.
Aiming to make it easier to do business in India, finance minister Arun Jaitley in his 2017-18 budget presented on 1 February promised to simplify labour laws and abolish the foreign investment and promotion board (FIPB).
Jaitley announced legislative reforms to simplify, rationalize and amalgamate existing labour laws into four codes—wages, social security and welfare, industrial relations, and safety and working conditions.
The finance minister said a road map for scrapping the FIPB that scrutinizes foreign investment proposals will be announced soon as part of the government’s financial sector reforms.
The National Democratic Alliance (NDA) government at the centre plotted an eight-point strategy to make it easier to do business in India. Departments will now hold stakeholder consultations for feedback on reforms undertaken, and also engage with respondents to ensure the reforms are implemented at the ground level. Each department will review progress every week in carrying out the necessary reforms.

Government Aims To Make India A Global Biotech Hub By 2020

New Delhi: The Minister of State for Science and Technology & Earth Sciences, Mr. Y. S. Chowdary, has said that biotechnology will be the leader among the knowledge based industries of the 21st century. He said producing affordable products will be major issue for India. He called for efforts to set up a proper ecosystem with sustainable systems, particularly in hubs of rural India. The Minister was speaking after inaugurating the 5th Foundation Day of Biotechnology Industry Research Assistance Council (BIRAC), Department of Bio-Technology at New Delhi today.
Mr. Y. S. Chowdary, further said that – “Research and innovation has been one of the key areas emphasized by the Prime Minister. Globally, BIRAC has been hailed as one of the most effective government measures to create an enabling environment for research and development to flourish in a country. We aim to develop India into a global innovation hub by 2020 and BIRAC has paved the way to deliver on that mandate.”
The 5th Foundation Day themed ‘Impacting the Biotech Innovation Ecosystem’ was presided over by and attended by a large number of dignitaries from the scientific and industry sectors both from within the country and oversees.
BIRAC is a not-for-profit public sector enterprise, set up by the Department of Biotechnology (DBT), Government of India which acts as an interface agency to support emerging biotech enterprises to undertake strategic research and innovation, to address nationally relevant product development needs. Through the course of five years, BIRAC has supported over 618 projects, 850 start-ups, entrepreneurs, biotech companies and organizations and 20 incubators across the country, resulting in over 66 products and technologies and 120 Intellectual property rights being generated.
BIRAC supports entrepreneurs and start-ups at different stages of innovation – from the ideation stage to managing intellectual property rights and finally to the commercialization of products. Different initiatives of BIRAC target different stages of the innovation ecosystem from ideation stages to proof-of-concept and late stage validation to product development. BIRAC has 9 flagship schemes that are supported by funding from the Department of Biotechnology, and manages 7 collaboratively funded programs with international partners, such as the Bill & Melinda Gates Foundation, Nesta, the Wellcome Trust and USAID, among others. Social Innovation is a key focus for affordable and accessible product development.
Dr. K. Vijay Raghavan, Secretary, Department of Biotechnology and Chairman, BIRAC said that Innovation and research must be directed toward addressing the most pressing problems of society. We’re proud that BIRAC and the Department of Biotechnology are spearheading this effort in the biotechnology domain. Since its inception in 2012, BIRAC has created nearly two dozen incubators across the country and supported over 350 start-ups. We firmly believe that social entrepreneurship is the key to creating an inclusive society and our government is committed to providing all the necessary support.
The science and technology sector will play a key role in the government’s Start-Up India Action Plan. The DBT, in line with the Start-Up India Action Plan has undertaken a number of initiatives centered on the three pillars of an ideal innovation ecosystem – funding, mentoring and capacity building, and the infrastructure to translate scientific research into commercial products. To this end, BIRAC implements its mandate through a wide range of high impact initiatives, providing access to risk capital through targeted funding, facilitating technology transfer, and supporting intellectual property management and handholding schemes for biotech firms to make them globally competitive.
Dr. Renu Swarup, Senior Adviser, Department of Biotechnology and Managing Director, BIRAC said that through initiatives such as Start-Up India and the Science and Technology for Harnessing Innovations or SATHI, the government is ushering in supportive policies and removing regulatory barriers to create an atmosphere of innovation and entrepreneurship in the country. The world as a whole stands to gain with Indian innovators stepping up and changing the way we address the grand challenges we face today. We are proud that BIRAC has created an enabling environment for the biotechnology industry to prosper.
The BIRAC Foundation will be followed by the Grand Challenges India Meeting to be held from 21st to 24th March, 2017 which will have the participation of BMGF, Wellcome Trust, USAID and Grand Challenges Innovators from Brazil, Canada, Bangladesh, Korea, South Africa, Kenya, Switzerland.

Electric cars, buses and metros could help India save US$ 60 billion in 2030: Niti Aayog report

New Delhi: India could save up to Rs 3.9 lakh crore ($60 billion) in 2030, if the country switches to greener mobility solutions such as public transport, electric vehicles and car-pooling, according to a report by government think tank NITI Aayog.
“India’s current mobility system reflects many of the underlying properties of the emerging mobility paradigm. India could leapfrog the conventional mobility model and achieve a shared, electric and connected mobility future by capitalising on these existing conditions and building on foundational government programmes and policies,” the report “India leaps ahead: Transformative mobility solutions for all” released on Friday said.
The report is based on a workshop convened by NITI Aayog and a US-based think tank Rocky Mountain Institute (RMI) in February when 75 executives from public and private sectors discussed ways to decongest the present public mobility by designing a sustainable model for the next 15 years.
It said India could save 64% energy in 2030 by shifting to shared electric mobility. The subsequent drop in petrol and diesel consumption would be 156 million tonnes of oil equivalent (MTOE) or 1.8 tera watt-hour energy -- enough to power 1,796.3 million homes in the country.
Also, by pursuing a future powered by electric mobility, carbon dioxide emissions would drop by 37% in 2030, the report said. It also suggested ways of reducing carbon footprint by measures such as limiting registrations of petrol and diesel vehicles by incorporating a lottery system; a system prevalent in China.
Power minister Piyush Goyal had already announced in April to have an all-electric car fleet in India by 2030. “The idea is that by 2030, not a single petrol or diesel car should be sold in the country,” he had said.
But the idea of electric vehicles never picked up pace in India, mostly driven by lack of favourable policy and recharging infrastructure, and scepticism about how long would an electric vehicle go on one charge.
Inadequate public transportation facilities in major cities has also prompted more and more private vehicles sales in the country. In FY2017, roughly 17.7million bikes and scooters were sold in India, making it the largest two-wheeler market on the planet. That’s over 48,000 vehicles per day.
With cities growing faster than the infrastructural development, more traffic congestion and subsequent pollution has called for urgent measures like car pooling as mentioned in the Niti Aayog - RMI report.
UberPOOL, a ride-sharing service introduced in 2015 by cab-aggregator Uber in Bengaluru, saved over 32 million vehicle-kilometres, 15 lakh litre of fuel and reduced 35 lakh kg CO2 emissions, the report highlights. The service is now available in major cities across .
The study further recommends policy changes such as “mobility-oriented development” of towns and cities by focussed local civic bodies, introduction of zero-emission vehicle credits to incentivise electric and hybrid-energy mobility, setting up a grid for ubiquitous and affordable EV charging, and encourage makers of battery cell technology and electric mobility ancillary industries.

India best equity story in EMs, says Chris Wood

New Delhi: “India is the most preferred equity story in the emerging markets universe on a 10year view,” says Christopher Wood, managing director and equity strategist at CLSA in his weekly note, GREED & fear.
“A belief that has been strengthened by evidence that the Modi government is showing a renewed focus to address the asset quality problem in the banking sector,” he explains. That move has triggered an investment rejig in his portfolio, with the addition of State Bank of India with a three per cent weight; a further one percentage point will be added to the existing investment in HDFC. As a result, the investment in Naver in the Asia ex-Japan long-only portfolio will be removed.
The positive stance on India is despite the market’s rich valuations, up nearly 19 per cent since the December 2016 low.
“GREED & fear remains constructive even if the Indian stock market is certainly expensive on a forward earnings basis. The continuing rise in the stock market year-to-date, and the resulting re-rating, has been triggered primarily by ongoing strong inflows into domestic equity mutual funds,” says Wood.
In the first three months of calendar year 2017, mutual funds have invested ~11,469 crore in the Indian equity market. The flow continued in April, with MFs putting ~9,917 crore, compared to ~4,196 crore in March. In the seven months between October 2016 and April 2017, they have invested ~53,469 crore in equities, compared to ~16,527 crore in the previous corresponding period, the data shows. New bank regulations Last week, the government had notified an ordinance to amend the Banking Regulation Act. This brings a new framework to deal with the ~6 lakh crore worth of non-performing assets (NPA) in the banking system.
The regulator has also been empowered to decide on dealing with toxic assets and instructing banks to act accordingly. The Reserve Bank of India (RBI) will also set up multiple oversight committees to direct banks and joint-lending forums to deal with stressed assets.
“The other aim of this amendment is to remove a concern shared by all bankers, that if they agree to a haircut (write-off) on a specific loan, they will be at risk of future investigation by the judiciary or an investigative agency. It is the reluctance of banks to take haircuts which has been the key cause of India’s long festering banking problem,” says Wood.
The lack of progress in addressing this legacy problem, he feels, is the main reason why India is still seeing no evidence of a renewed private sector-driven investment cycle. Once the NPA issue is resolved, the way will be clear for public sector banks to raise capital. A process which should also lead, with the encouragement of both RBI and the government, to the consolidation of these banks, Wood feels. GST Implementation of the goods and services tax (GST) laws, according to Wood, is a landmark achievement that will help end inter-state barriers to trade and increase tax revenues.
“The rest of the Indian story under the extraordinary Modi remains as vibrant as ever. While it is true that the Aadhaar programme was launched under the previous government, the real roll-out and practical application of the programme has been massively leveraged since Modi assumed power. The benefits of direct electronic payments are hard to exaggerate in terms of reduced leakages and the like,” he says.

Narendra Modi to inaugurate India's longest bridge in Assam near China border

Dibrugarh: Prime Minister of India, Mr Narendra Modi, will inaugurate the longest river bridge in India, called 'Dhola-Sadiya' bridge, that is built over the Brahmaputra river in Assam near the China border, with a length of 9.15 km, on May 26, 2017. The bridge can hold the weight of a 60-tonne battle tank and will enable easy movement of military troops due to its proximity to the China border, thereby strengthening India's defence needs along the Shino-Indian border. The bridge will also provide quick access to the people of Assam and Arunachal Pradesh, as it will reduce the travel time between the two states by about four hours. In the absence of a civilian airport in Arunachal Pradesh, this bridge will enable people from this state to go to the closest rail head in Tinsukia as well as the airport in Dibrugarh. The bridge is 540 km from Dispur, the capital of Assam, 300 km from Itanagar, the capital of Arunachal Pradesh and less than 100 km aerial distance from the China border.

India and UK to cooperate in urban transport sector

New Delhi: India & UK today agreed to sign a memorandum of understanding (MOU) on bilateral cooperation in urban transport policy planning, technology transfer and institutional organization of transport.
The decision to enter into a bilateral cooperation arrangement between the Transport For London (TFL) and the Indian Ministry of Road Transport and Highways on a wide range of transport mobility solutions and associated activities in urban environments was taken during the three-day official visit of the Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari to Britain.
During his visit to the headquarters of Transport For London (TFL) , Shri Gadkari was given a presentation on strategy and policy reforms, customer experience and data analysis in respect of London buses and other integrated modes of public transport in Greater London area.
Under the proposed MOU, the TFL will share with the Ministry of Road Transport and Highways its expertise on the mobility and efficiency of transport system and methodologies to facilitate the planning and delivery of mobility solutions including ticketing , passenger information, major project financing, infrastructure maintenance strategies and behavioural change and public transport promotion.
Shri Gadkari later said the signing of the MOU will be done through diplomatic channels shortly. Possibilities of further cooperation on electric buses, bus innovation and capacity augmentation and water transport were also explored during his interaction with the TFL authorities.
The TFL provides world class services that keep the British capital better equipped with public transport. The TFL virtually coordinates all the London transport, including London metro, the bus network, Dockland Light Rail, water transport and cable car.

India Shows the Way to the World in Fight Against Climate Change

New Delhi: Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Shri Piyush Goyal presided over the launch of World’s largest efficient lighting programme, UJALA – UK (UK Joins Affordable LEDs for All) by Energy Efficiency Services Ltd. (EESL) in London, United Kingdom today. Talking about the philosophy of the Prime Minister of India, Shri Narendra Modi about preventing wastage of all resources especially electricity, Shri Goyal said that, “a sustainable lifestyle is important for the future of the planet and if the planet has to be saved for the future generations, it is I, you and we all who have to collectively make a difference and act today itself. We are running out of time.”
Informing the august gathering about the scale at which the EESL LED programme is expanding, the Minister said that, “the EESL LED programme in India has grown 140 times in less than 2 years and I don't think we will find any parallel to that anywhere in the world. EESL would achieve the turnover target of $1.5 million by 2019, concomitant with the Government of India’s target under the UDAY scheme and 100% rural household electrification”. Shri Goyal further stated that even in the Developed countries like the US and Europe, there is a great potential for incorporating energy efficiency measures like the EESL LED programme, especially looking at the climate change scenario in the present context. India's share in the Global LED market has increased from a mere 0.1% a few years back to around 16% today, it was informed.
Talking about the potential energy savings by implementing the LED programme in India, Shri Goyal said that lighting alone consists of 15% of the total energy needs of the population across the country, especially the lower middle class families, which is about 180 billion units of energy. As India moves towards becoming a 100% LED Nation, the potential savings would be around 112 billion units, in other terms reducing carbon dioxide emissions by nearly 79 million tonnes every year. Consequently, India’s peak load will reduce by about 20 GW and our consumers will save around $6.5 billion worth in electricity bills annually, the Minister added.
Describing the strategy for scaling up the LED penetration in UK, Shri Goyal said that India was able to significantly reduce the purchase price of the LED by increasing efficiency and not giving subsidies to the consumers. The scheme has sustained itself on the savings achieved by increasing energy efficiency in the whole lifecycle of the LED bulbs. “Government of India has fine tuned the process, brought down the costs of manufacturing and sold nearly 230 million LED bulbs whereas the private sector, in the same period, sold about 330 million LED bulbs, effectively replacing about 560 million incandescent bulbs in the last 2 years. The consumers are the direct beneficiaries by saving on electricity bills and reducing the carbon footprint on the environment for the future generations, he added.
The Minister requested the Government of UK to get EESL in touch with all the stakeholders like local distribution companies, e-commerce companies, hotels, industry, large businesses, supermarket chains etc. and replicate India's model in the UK so as to achieve a similar kind of scale up that the programme has witnessed in India as a zero investment model. He stressed that a massive deployment of this LED programme throughout the world will go a long way in fighting climate change and make the world a better place to live in for the future generations. The Minister urged all the dignitaries present to become ambassadors of this Energy Efficiency programme for a better tomorrow. “I hope that we all will come together in a mission mode to adopt Energy Efficiency as a way of life in the future”, Shri Goyal added.
The Minister also suggested to the Government of the UK a target of replacing at least 100 million incandescent bulbs with LEDs by March 2019 and reduce the individual household consumption of energy by at least half. Further, it was informed that as a beginning to UJALA-UK operations, EESL has started the retrofitting of the facade and other lights of the High Commission of India in UK and the India House which would lead to considerable energy savings. EESL’s engagement with the UK will cover a broad spectrum including marketing of the world class energy efficiency products, services, investments and raising capital, scouting for new energy efficiency technologies and partnering with British companies to establish presence in third world country markets.
During the event, MoUs were signed between Indian High Commission and EESL and between the British Electrotechnical and Allied Manufacturers Association (BEAMA) and the Indian Electrical and Electronic Manufacturers Association (IEEMA) to strengthen bilateral industry cooperation and exchanges between India and the UK.
Dignitaries present during the event were Shri Y.K. Sinha, the High Commissioner of India to the UK, Shri Dinesh Patnaik, Deputy High Commissioner of India in UK, Pankaj Patel, President, FICCI along with other dignitaries from Governments of India and UK, FICCI and other stakeholders from the industry.