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Jottings: The Fiscal And NPAs

While Singhania elder is in hospital, it is business as usual for the son. Raymonds recently bought the Ansell’s stake in the company’s joint venture, JK Ansell

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All eyes will be on the amount of capital that North Block and Mint Road set aside for the recapitalisation of banks. Last week, Reserve Bank of India (RBI) governor, Urjit Patel, noted that the success and credibility of all resolution efforts (dud-loans) would be critically contingent on the strength of the state-run banks’ balance sheets to absorb the costs. “It is clear they will need to take haircuts on current exposures under any resolution plan agreed within or outside the IBC (Insolvency and Bankruptcy Code (2016)”.

Given the pressures on the fisc, it is anybody’s guess where the Centre will pull the money in from. While Patel said that the Centre and the RBI are in a dialogue to prepare a package of measures to enable these banks to shore up the requisite capital in a time-bound manner, perhaps it is also a good time to have a look at the concept of the “Golden Share” — whereby the Centre will be able to cut its holding to less than 51 per cent and yet retain its hold.
— Raghu Mohan

Not An Easy Chase
Since it split from Hero MotoCorp in 2011, Japanese two-wheeler manufacturer, Honda Motorcycles, has recorded a consistently high growth in the Indian two-wheeler market. The two-wheeler now sells more than five million units every month and is striving to become the number one player in the market by 2020, overtaking Hero MotoCorp, which sells more than six million units every month.

Even if the current growth rate of the Honda bike indicates that chasing Hero was possible, it may effectively prove difficult at the marketplace. In the last three months, Hero MotoCorp has had a great run in the Indian automotive market and the trend is likely to continue. The world’s largest two-wheeler manufacturer is all set to come up with six to seven new products in the next two years to cement its leadership position. Of these new launches, three will be in the fast growing scooter segment which would in a way, counter Honda Active’s magnificent sales. 
— Arshad Khan

The Complete Man?
The Raymonds man, if  you believe the long-running advertising campaign of the suitings brand, is the “complete man”. Two complete men of the worsted suitings empire are now part of a dispute that is the stuff that television serials and movies are made of.  Raymonds Ltd. founder Vijaypat Singhania and his son and chairman and managing director of Raymond Ltd., Gautam Hari Singhania are locked in a court battle that could dent the brand’s image and goodwill.

While Singhania elder is in hospital, it is business as usual for the son. Raymonds recently bought the Ansell’s stake in the company’s joint venture, JK Ansell. The acquisition of the Ansell stake in JK Ansell, takes the consumer value of Raymond’s combined FMCG business to close to Rs 800 crore in FY18.
— Monica Behura


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