Flipkart invests Rs 260 crore in Arvind Youth Brands

Flipkart Group bought a minority stake in Arvind Youth Brands, a subsidiary of Arvind Fashions Ltd’s (AFL), for Rs 260 crore (US$ 36.88 million). The company, which owns denim brand Flying Machine, plans to build the brand online and in India's smaller markets.

Flying Machine is a four-decade old brand and has been selling on Walmart-backed Flipkart and Myntra for over six years.

"Through this investment, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points," as per the Arvind Fashions Ltd filing to the exchanges.

Arvind Fashions oversees international and local fashion apparel brands in the country such as US Polo Assn., Arrow, GAP, Tommy Hilfiger, Flying Machine, Aeropostale, The Children’s Place and Ed Hardy. It also operates the value fashion retail chain, Unlimited, apart from a partnership with beauty retailer Sephora for its India business.

The company has been trying to reduce its dependence on physical stores. With this move, it is moving online for its business.

"The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine," said Mr J. Suresh, managing director and chief executive officer, Arvind Fashions.

Mr Suresh added that Flipkart and Myntra will be the brand's preferred online partners, even as it continues to grow offline sales through channels like exclusive brand stores, department stores and multi-brand stores.

Flipkart will leverage the brand's popularity that has over the years moved to India's smaller cities and expand its presence on its platform with value price points for shoppers in that segment.

"Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades, “ said Mr Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group.

In another filing to the exchanges, Arvind Fashions Ltd., said the company and its wholly owned subsidiary, Arvind Lifestyle Brands Limited, have each signed definitive agreements to transfer the wholesale trading and the retail trading business in "Flying Machine" brand to a wholly owned subsidiary, Arvind Youth Brands Private Limited.

In FY19, Flying Machine brand, under Arvind Fashions Ltd., recorded a standalone turnover of Rs 365 crore (US$ 51.78 million).

Flipkart has been gradually growing its presence in India's fashion apparel market.

Fashion retailer Myntra, part of the Flipkart Group, won the rights in 2017 to manage Spanish fashion brand Mango’s offline stores in India, as well as sell the brand exclusively on its online marketplace.

RIL-BP launch fuel and mobility joint venture

Reliance Industries and BP India announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited (RBML).

In August 2019, both the companies had announced their plan to create a new joint venture company, where 51 per cent will be held by RIL and the remainder by BP. BP will acquire 49 per cent stake in RIL’s existing petrol pumps and aviation turbine fuel network by investing about Rs 7,000 crore (US$ 993.05 million).

"Operating under the Jio-BP brand, the joint venture aims to become a leading player in India's fuels and mobility markets," said BP in a press statement adding that it will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform.

BP will add its extensive global experience in high-quality differentiated fuels, lubricants, retail, and advanced low carbon mobility solutions.

The marketing authorization for transportation fuels, amongst other necessary regulatory and statutory approvals has been received by RMBL. It will start selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp" in due course.

It is expected that India will become the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period.

The company targets to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years. This is expected to increase the staff employed in service stations by four-fold, growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years

“Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers," said Mr Mukesh Ambani, Chairman and Managing Director, RIL.

It aims to provide consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time. RBML is also committed to the decarbonization of its own operations as well as that of its wider ecosystem.

Mr Bernard Looney, BP chief executive officer, said, "This new venture is a unique opportunity to build a leading, fast-growing business that can help meet India’s demands and create exciting new digital and low-carbon options for the future."

PM to dedicate to the nation the 750 MW Rewa Solar Project

Prime Minister Shri Narendra Modi will dedicate to the nation the 750 megawatt (MW) Solar Project set up at Rewa, Madhya Pradesh on July 10, 2020.

This Project comprises of three solar generating units of 250 MW each located on a 500-hectare plot of land situated inside a Solar Park (total area 1500 hectare). The Solar Park was developed by the Rewa Ultra Mega Solar Limited (RUMSL), a Joint Venture Company of Madhya Pradesh UrjaVikas Nigam Limited (MPUVN), and Solar Energy Corporation of India (SECI), a Central Public Sector Undertaking.  Central Financial Assistance of Rs 138 crore (US$ 19.58 million) has been provided to RUMSL for development of the Park. After the Park had been developed, Mahindra Renewables Private Ltd., ACME Jaipur Solar Power Private Ltd., and Arinsun Clean Energy Private Ltd were selected by RUMSL through reverse auction for developing three solar generating units of 250 MW each inside the Solar Park. Rewa Solar Project is an example of the excellent results that can be achieved if there is synergy between Central and State Governments.

The Rewa Solar Project was the first solar project in the country to break the grid parity barrier. Compared to prevailing solar project tariffs of approx. Rs 4.50 (US$ 0.06)/unit in early 2017, the Rewa project achieved historic results: a first-year tariff of Rs 2.97 (US$ 0.04)/unit with a tariff escalation of Rs 0.05 (US$ 0.0007)/unit over 15 years and a levelized rate of Rs 3.30 (US$ 0.046)/unit over the term of 25 years.  This project will reduce carbon emission equivalent to approx. 15 lakh ton of CO2 per year.

The Rewa Project has been acknowledged in India and abroad for its robust project structuring and innovations. Its payment security mechanism for reducing risks to power developers has been recommended as a model to other States by MNRE.  It has also received World Bank Group President’s Award for innovation and excellence and was included in the book “A Book of Innovation: New Beginnings” released by Prime Minister.  The project is also the first renewable energy project to supply to an institutional customer outside the State, i.e. Delhi Metro, which will get 24 per cent of energy from the project with remaining 76 per cent being supplied to the State DISCOMs of Madhya Pradesh.

The Rewa Project also exemplifies India’s commitment to attain the target of 175 GW of installed renewable energy capacity by the year 2022, including 100 GW of Solar installed capacity.

PM addresses the inaugural session of India Global week

Prime Minister Shri Narendra Modi today addressed the inaugural session of India Global week via videoconference.

Referring to the current times of crisis, the Prime Minister said India would play a leading role in the global revival. He said that this is closely linked with two factors. First is - Indian talent and second is India's ability to reform and rejuvenate. He elaborated that world over, the contribution of India's talent-force is highly recognised, especially the contribution of the Indian tech industry and tech professionals.

He described India as a powerhouse of talent that is eager to contribute. He added that Indians are natural reformers and history has shown that India has overcome every challenge, be it social or economic.

He said that when India talks of revival it is:  Revival with care, Revival with compassion, Revival which is sustainable - both for the environment and the economy.

The Prime Minister listed the gains made during the last six years such as: total financial inclusion, record housing and infra construction, Ease of Doing Business, bold tax reforms including the GST.

PM said that the green-shoots of economic recovery could already be seen as owing to the indomitable Indian spirit.

He said that technology today helps the Government every benefit to the beneficiaries directly, including, providing free cooking gas, cash in the bank accounts, free food grains to millions of people and many other things.

PM said India is one of the most open economies in the World and is inviting all the Multinational Companies to set up their business in India. The Prime Minister described India as a land of many possibilities and opportunities.

He described the various reforms initiated in the Agriculture Sector and said that it provides a very attractive investment opportunity for the global industry. 

The Prime Minister said that the latest reforms are providing a boost to the MSME Sector and that they would be complimenting the big industry.

He said that there are investment opportunities in the defence sector and the space sector. 

The Prime Minister said that the pandemic has once again shown that India's Pharma industry is an asset not just for India but for the entire world. It has played a leading role in reducing the cost of medicines especially for developing countries.

He said that Atma Nirbhar Bharat is not about being self-contained or being closed to the world but about being self-sustaining and self-generating.

This is an India that is reforming, performing, and transforming. This is an India that offers new economic opportunities. This is an India that is adopting a human-centric and inclusive approach to development.  India awaits you all, he said.

He expressed happiness that the Forum was also marking the 100th birth anniversary of Pandit Ravi Shankar, who took the beauty of Indian classical music to the world. He also highlighted how Namaste has gone global as a form of greeting. He said that India is ready to do whatever it can to further global good and prosperity. 

Indian fantasy sports platforms report three-fold jump in FY20 revenue: Study

According to the joint report released by the Federation of Indian Fantasy Sports (FIFS) and KPMG, the Indian online fantasy sports industry was booming vastly, before the COVID-19 pandemic wreaked havoc across the world. As per the data, the gross revenue of online fantasy sports (OFS) operators including Dream11 increased threefold to Rs 2,470 (US$ 350.40 million) in FY20 versus Rs 920 crore (US$ 130.51 million) in the previous fiscal. The increase of three-fold was registered despite the impact of the pandemic on the revenues for the last 15 days of March when government restricted businesses activities and announced the nationwide lockdown.

The OFS market attracted Contest Entry Amount (CEA) worth Rs 16,500 crore (US$ 2.34 billion) in FY20 versus Rs 6,000 crore (US$ 851.18 million) in previous financial year. CEA is the amount of money paid by a user to the operator to play a match on its platform. Thus, increase in CEA denotes that the number of players on various platforms have significantly increased.

This growth was led by the increase in overall userbase and the number platforms. Users have increased from two million in 2016 to 90 million in 2019, the OFS platforms grew from less than 10 operators in 2016 to over 140 by 2019.

Indian online sports fantasy industry indirectly generated Rs 2,600 crore (US$ 368.85 million) revenue for the secondary industries as well including payment gateways, technology providers, media platforms and agencies. Around 3,400 direct and over 5,000 indirect jobs have been created so far. The top OFS operators have ventured into team-based sports such as cricket, football, and kabaddi, bringing seasonality and reducing over dependence on a single sport. The share of cricket as a percentage CEA has seen a decrease from 95 per cent in 2016 to 85 per cent in 2019.

According to the report, some of the growth drivers responsible for the space are growth in digital infrastructure, increase in online transactions, growing popularity of sports leagues, operator investments in technology and reaffirmation of the legality of the fantasy sports format in India.

“While COVID-19 may result in a temporary blip in the upward trajectory of the fantasy sports segment, the medium to long term growth prospects of the segment remain robust, with the gradual return of international sport. Further, in a post COVID world, with social distancing measures in place, fantasy sports is likely to play an increasingly important role in connecting fans to their favourite sports and increasing fan engagement," said Mr Girish Menon, partner and head, media and entertainment, KPMG in India.

Although, global football leagues like Bundesliga, English Premier League, Serie A and La Liga have started, and it is estimated that Indian Premier League (IPL) might start towards the fag end of the year. This is likely to provide relief to the online fantasy sports industry in the country.

"In absence of live events in the last few months, the business has taken a massive hit. With football and basketball leagues starting globally, I feel the worst is behind us. Hopefully, sports tournaments in India including IPL will also resume. The recovery will be quick as there is immense pent up demand for sports," said Mr Amrit Mathur, strategic advisor, FIFS.

The user base has been showing interest in online fantasy sports as revealed a dipstick survey by KPMG conducted on 763 respondents across 10 cities. Out of these 253 were OFS users (having played OFS in the last one year) and the rest were categorized as non-OFS users. Total, 65 per cent of the respondents indicated sports was among the top three genres they watched on TV and OTT platforms.

As per the data, a total of 32 per cent were engaged with more than one sport on the OFS platforms; incentivizing operators to expand their sports offerings. Over 65 per cent of these respondents revealed that there is a direct increase in the time spent in analysing, watching, and reading about the Sport once they start playing fantasy sports online.

Though, there are crucial challenges which involves high dependency on cricket, seasonality, consumer perception of OFS being a game of skill, low entry barriers, play store listing limitation and low women participation.

Cabinet approves extension of time limit for availing the benefits of "Pradhan Mantri Garib Kalyan Yojana" for Ujjwala beneficiaries by three months w.e.f. 01.07.2020

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the proposal of Ministry of Petroleum & Natural Gas for extension of time limit by three months w.e.f. 01.07.2020 for availing the benefits of “Pradhan Mantri Garib Kalyan Yojana" for Ujjwala beneficiaries

The Government had announced a relief package " Pradhan Mantri Garib Kalyan Yojana" aimed at providing a safety net to the poor and vulnerable who had been hit the hardest by the pandemic. The package also included relief for poor families who had availed of an LPG connection under PMUY. Under the PMGKY-Ujjwala, it was decided to provide free of cost refills for PMUY consumers for a period of 3 months w.e.f. 01.04.2020.

Under the Scheme, Rs 9,709.86 crore (US$ 1.38 billion) was transferred directly into the bank accounts of Ujjwala beneficiaries during April- June 2020 and 11.97 crore cylinders were delivered to the PMUY beneficiaries. The scheme went a long way to ameliorate the suffering and disruption caused due to the Coronavirus pandemic.

On review of the scheme, it has been observed that a section of PMUY beneficiaries are yet to utilize the advance credited into their account to purchase the cylinder refill within the scheme period. Hence, the Cabinet has approved the proposal of the Ministry of Petroleum & Natural Gas to extend the time-limit for availing the advance by three months. This will benefit those PMUY beneficiaries who have been credited with the advance for buying the cylinder but have not been able to purchase the refill. Thus, the beneficiaries who already have the advance transferred to their account can now take the free refill delivery till 30th September.

Cabinet approves developing of Affordable rental housing Complexes for urban migrants / poor

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY – U) by:

• existing vacant government funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years. Concessionaire will make the complexes liveable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc. States/UTs will select concessionaire through transparent bidding. Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
• special incentives like use permission, 50 per cent additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing etc. will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.

 

A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

An expenditure of Rs 600 crore (US$ 85.12 million) is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction. Approximately, three lakh beneficiaries will be covered initially under ARHCs.

ARHCs will create new ecosystem in urban areas making housing available at affordable rent close to the place of work. Investment under ARHCs is expected to create new job opportunities. ARHCs will cut down unnecessary travel, congestion, and pollution.

 Government funded vacant housing stock will be converted into ARHCs for economically productive use. The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.

 Background:

Ministry of Housing and Urban Affairs (MoHUA) has initiated an Affordable Rental Housing Complexes (ARHCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana (Urban). The scheme was announced by the Hon'ble Finance Minister on 14 May 2020. This scheme seeks to fulfill the vision of 'AtmaNirbhar Bharat’.

COVID-19 pandemic has resulted in massive reverse migration of workers/ urban poor in the country who come from rural areas or small towns for seeking better employment opportunities in urban areas. Usually, these migrants live in slums, informal/ unauthorized colonies, or peri-urban areas to save rental charges. They spend lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.

 

Cabinet approves capital infusion for the three Public Sector General Insurance Companies - Oriental Insurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited

The Union Cabinet chaired by the Prime Minister; Mr Narendra Modi has approved the capital infusion for an overall value of Rs 12,450 crore (US$ 1.77 billion); (including Rs 2,500 crore (US$ 354.66 million) infused in FY20) in the three Public Sector General Insurance Companies (PSGICs) namely Oriental Insurance Company Limited (OlCL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIICL) but of which Rs 3,475 crore (US$ 492.98 million) will be released immediately; while the balance Rs 6,475 crore (US$ 918.57 million) will be infused later. Cabinet also approved increase in authorised share capital of NICL to Rs 7,500 crore (US$ 1.06 billion) and that of UIICL and OlCL to Rs 5,000 crore (US$ 709.32 million) respectively to give effect to the capital infusion. Further, the process of merger has been ceased so far in view of the current scenario and instead, the focus shall be on their profitable growth. 

Impact

The capital infusion will enable the three PSGICs to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes, and enhance the capacity to raise resources and improved risk management.

Financial implications:

In the current financial year, the immediate financial implication would be Rs 3,475 crore (US$ 492.98 million) as a result of capital infusion in three PSGICs namely OlCL, NICL and UIICL as the first tranche which will be followed by Rs 6,475 crore (US$ 918.57 million).

Way forward:

To ensure optimum utilization of the capital being provided, the Government has issued guidelines in the form of KPIs aimed at bringing business efficiency and profitable growth. In the meanwhile, given the current scenario, the process of merger has been ceased so far and/instead focus shall be on their solvency and profitable growth, post capital infusion.

National COVID-19 Recovery Rate continues to sharply improve; touches 61.53 per cent

The number of samples being tested for detection of COVID-19 is substantially growing every day. During the last 24 hours, 2,62,679 samples have been tested of which more than 53,000 samples have been tested in private labs. The cumulative number of samples tested, as of now is 1,04,73,771. As a result, the tests per million today stand at 7180. This is because of the sharply focussed “Test, Trace, Treat” strategy of the central Government, in coordination with the States/UTs.

A crucial component in the appreciable growth in the COVID-19 testing is the increased number of diagnostic labs across the country. With 795 labs in the government sector and 324 private labs, there are as many as 1119 labs in the country. These include:

• Real-Time RT PCR based testing labs: 600 (Govt: 372 + Private: 228)
• TrueNat based testing labs: 426 (Govt: 390 + Private: 36)
• CBNAAT based testing labs: 93 (Govt: 33 + Private: 60)

Growing healthcare infrastructure of various types of COVID facilities adequately supported by ICU and oxygen supported beds, ventilators and other equipment has facilitated and ensured timely detection and effective clinical management of COVID-19 positive cases. With more COVID-19 patients recovering, the gap between the number of recovered cases and active cases has increased by 1,91,886 as on date.

During the last 24 hours, a total of 16,883 COVID-19 patients have been cured, taking the cumulative figure of recovered cases to 4,56,830 so far.

The rate of recovery among COVID-19 patients continues to increase over the days. It has touched 61.53 per cent today.

Presently, there are 2,64,944 active cases and all are under medical supervision.

For all authentic and updated information on COVID-19 related technical issues, guidelines & advisories please regularly visit: https://www.mohfw.gov.in/ and @MoHFW_INDIA.

Technical queries related to COVID-19 may be sent to technicalquery.covid19@gov.in and other queries on ncov2019@gov.in and @CovidIndiaSeva.

In case of any queries on COVID-19, please call at the Ministry of Health & Family Welfare helpline no.: +91-11-23978046 or 1075 (Toll-free).

List of helpline numbers of States/UTs on COVID-19 is also available at

https://www.mohfw.gov.in/pdf/coronvavirushelplinenumber.pdf.

India Post adds highest number of outlets in five years in FY19

India Post is establishing itself further in Bharat (the hinterland) by stepping up network expansion to take advantage of the rising demand for e-commerce and financial services.

According to its latest annual report (FY20), India Post (also known as the Department of Posts) opened 1,119 rural post offices (RPOs) in FY19, the highest in the last five years, against 815 in FY18 and 112 in FY17.

At the same time, the number of urban post offices (UPOs) decreased by 50 in FY19 against 249 in FY18 and 57 in FY17.

As of March-end 2019, the RPOs and UPOs stood at 1,41,001 (1,39,882 as of March-end 2018) and 15,599 (15,649), respectively.

India Post has a network of 1,56,600 post-offices, as of March-end 2019. It has presence bigger on-the-ground across the country as compared to the branches (1,45,426) of all scheduled commercial banks put together.

According to the postal department, India has the largest postal network in the world and the demand continues increase for opening of post offices.

The Department of Posts (DoP) plans to develop infrastructure, including post offices, and those relating to transportation and delivery of parcels/packets with online payment or cash on delivery, to expand the reach of the e-commerce industry to Tier II and III towns as well as to rural areas.

As per the report, the deposits (current account, savings account) of India Post Payments Bank’s (IPPB) as of December-end 2019 increased to Rs 527.15 crore (US$ 74.78 million) from Rs 94.40 crore (US$ 13.19 million) as of March-end 2019.

Each post office operates both as a postal outlet and an access point for the Payments Bank. IPPB was established in 2016 as a public limited company with 100 per cent government equity under DoP.

The bank mainly focusses on serving social sector beneficiaries, migrant labourers, unorganised sector employees, Micro-Small and Medium Enterprises (MSMEs), low-income households, and the unbanked and under-banked segments in both the rural and urban areas.

IPPB’s product suite includes savings account and current account; money transfer; direct benefit transfer; distribution of third-party products; bill and utility payments; and enterprise and merchant payments