2 COMPANIES

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MUMBAI | 14 DECEMBER 2019 1

IN BRIEF
Amneal beats DRL to launch Bhushan Power resolution Tata Steel needs
limited-competition drug to lay off more to
US-based Amneal Pharmaceuticals beat
Dr Reddy’s Laboratories (DRL) in getting
approval from the US Food and Drug
may have to wait longer cut costs: Experts
Administration (USFDA) for a key limited- Process tied in legal knots even with the latest set of amendments to IBC ADITI DIVEKAR weak economic growth
competition drug that the Hyderabad Mumbai, 13 December damped output of the alloy.
company has been working on. DRL’s ISHITA AYAN DUTT & NAMRATA ACHARYA In the Europe region, Tata
shares on Friday fell as much as 3.3 per Kolkata/Hyderabad, 13 December Tata Steel cutting nearly 3,000 Steel competes with large play-
cent intra-day, ending the day at ~2,827 jobs across its European ers, such as ArcelorMittal and
apiece, down 2.7 per cent. Amneal Pharma, promoted by two he resolution of Bhushan Power & operations may appear a strict ThyssenKrupp. “Tata Steel’s
Indian-American brothers, got the USFDA approval for generic
NuvaRing, a drug used to prevent pregnancy. Merck’s NuvaRing
has an estimated market size of $880 million, and is clocking
T Steel (BPSL), which is tied in legal
knots, may stretch further even with
the latest set of amendments to the
measure but more lay-offs are competition is also battling a
needed in the current market tough market condition but
conditions, given there are few continues to be ebitda positive.
single-digit growth. Some analysts peg the size at over $950 Insolvency and Bankruptcy Code (IBC) options available to the Therefore, in comparison, if
million. Amneal’s EluRyng is the first generic version of this low approved by the Cabinet. company, analysts said. Tata Steel looks like it is taking
competition drug, which the company plans to launch this The National Company Law Appellate “Tata Steel’s UK plant is stricter measures to rein in cost,
month. Amneal will have very limited competition for months Tribunal (NCLAT) that is hearing an appeal Ebitda (earnings before let it be. What needs to be done,
now. Apart from DRL, Teva Pharma and Mayne Pharma are in from JSW Steel — the winning bidder — on interest, taxes, depreciation, needs to be done,” said the for-
the race to launch the drug. In August, DRL got a complete Thursday set a fresh date for hearing on and amortisation) negative. It eign brokerage analyst.
response letter (CRL) from the USFDA on this drug. A CRL is issued January 13. certainly makes sense to have European steel producers
when the FDA decides not to approve new or generic drug Lenders had approached the Supreme deep jobs cut rounds to reduce are currently witnessing a weak
application for marketing in its present form. DRL is yet to Court, which was slated for hearing next the employee cost at this plant, manufacturing sector, includ-
respond to the USFDA on the matter. SOHINI DAS< week. They had moved apex court prima- and eventually idle the unit,” ing a decline in auto consump-
rily on two grounds. They wanted JSW to
implement the resolution plan and the
OVERLAPPING CLAUSES said an analyst with a foreign tion in the region.
brokerage. Even for ArcelorMittal, the
RIL arm acquires Not aware of any Enforcement Directorate (ED) to reverse an Section 71 of PMLA Section 238 of IBC Though the size of world's largest steel player,
51.78% stake in new complaint order attaching assets of BPSL.
“The matter will come up for hearing Act to have overriding effect Provisions of the Code to override other laws
the recent job cut is
not a confirmed Though the job cut
business
been tough. The
has

Asteria Aerospace
Reliance Industries on
Friday said its wholly-
owned subsidiary Reliance
Strategic Business Ventures
(RSBVL) had acquired more
than 51 per cent stake in
Asteria Aerospace for
~23.12 crore. "RSBVL has
acquired equity shares of
Asteria Aerospace for a cash
consideration of
~23.12 crore. The said
investment represents
51.78 per cent holding in the
equity share capital of
Asteria," Reliance Industries
(RIL) said in a BSE filing. The
investment will further
enable the group’s
initiatives in emerging
technology, it added. PTI<
SpiceJet grounds
three Boeing 737
freighter planes
SpiceJet on Friday said it had
grounded three Boeing 737
freighter aircraft because of a
"potential defect". The move
follows an advice from Israeli
against firm: Infosys
Infosys on Friday said it was not
aware of any additional
complaints made against the
company other than the one it
had disclosed to the bourses in
October this year. The clarifi-
cation comes amid reports of
the US-based Schall Law Firm
saying it has filed a class-
action lawsuit against Infosys
to recover losses suffered by
investors in the wake of
allegations of "unethical
practices" at the IT major.
Infosys, in a regulatory filing on
Friday, said the company is
aware of several reports
referencing an additional
securities class-action lawsuit
against Infosys. PTI<
ZestMoney partners
Northern Arc Capital
to disburse $400 mn
ZestMoney, an artificial
intelligence-driven EMI fina-
ncing platform, said it had
formed a strategic financial
partnership with Northern Arc
Capital to address the growing
next week,” said sources.
Lenders had written to JSW Steel after
the National Company Law Tribunal
(NCLT) approval for closing the transac-
tion. However, the firm was waiting for
the complications around the transaction
to be ironed out.
A lender said once the notification on
the amendments was done the case might
be withdrawn, while another lender point-
ed out that there were some confusions as
to whether it would apply to new cases or
ongoing as well. BPSL owes lenders around
~47,000 crore.
Kumar Saurabh Singh, partner of
Khaitan & Co, however, clarified that it
would be implemented like the last amend-
ment — both for future cases as well as for
the cases that were pending implementa-
tion. Even if lenders decide to withdraw the
Supreme Court appeal, the matter in the
NCLAT would have to be resolved.
Early September, the NCLT had
approved JSW Steel’s ~19,700-crore resolu-
tion plan for BPSL, but with modifications.
The NCLT, while approving JSW Steel’s
K Madhavan is Star-Disney India
The provisions of this Act
shall have effect
notwithstanding anything
inconsistent therewith
contained in any other law
for the time being in force
plan, had disposed of the various reliefs
sought from the statutory authorities
under the Income Tax Act, 1961, the min-
istry of corporate affairs, department of
registration and stamps, Reserve Bank of
India, among others.
It prompted JSW to appeal against the
order in the NCLAT. In its appeal, JSW
sought specific relief from the Prevention of
Money Laundering Act (PMLA), particu-
larly in the context of the banks reporting a
fraud in BPSL.
It also asked for relief from litigations
that could come up from other authorities
and finally a claim on the profits during
CIRP (corporate insolvency resolution
process). Even after JSW’s appeal, in
October, the ED attached assets of BPSL
The provisions of this Code shall have
effect, notwithstanding anything
inconsistent therewith contained in any
other law for the time being in force or
any instrument having effect by virtue of
any such law
worth ~4,025 crore under the PMLA. The
matter is still being heard in the NCLAT.
The attachment of assets came as a jolt
to resolution applicants in other cases. The
Mittals were understood to have sought
indemnity from past criminal liabilities for
Essar Steel.
On Wednesday, the government
sought to allay such apprehensions with
the IBC amendments. One of the amend-
ments aimed to ring-fence the corporate
debtor from criminal proceedings against
offences committed by previous manage-
ment/promoters. However, some industry
sources said in the case of BPSL lenders
and JSW might await clarity on the IBC
versus PMLA issue from the courts before
closing the transaction.
figure, brokerages size is not a company has
were of the view confirmed figure, idled series of
that further job cuts brokerages were of plants across
need to be around the view that Europe, cut pro-
these levels for a further job cuts duction in oth-
meaningful reduc- need to be around ers, and slowed a
tion in costs, the these levels for a planned ramp-
analysts said. meaningful up of production
Tata Steel reduction in costs, at Ilva, Europe's
Europe’s current the analysts said largest steel plant
production capac- that was
ity stands at 12.5 million acquired by it last year.
tonnes and it has 21,000 Tata Steel's overseas
employees. Of this, Port Talbot employee cost as a per cent of
(UK) has a capacity of 5 mil- its total expenses has been
lion tonnes, employing 8,500 quite erratic since the acquisi-
people, while Ijmuiden (the tion of erstwhile Corus. This
Netherlands) has a capacity of parameter showed the highest
7.5 million tonne. The contribution to total expenses
Netherlands operations have at 20.5 per cent in FY18, from
10,000 employees at present. the lowest 13.5 per cent in FY09.
According to the European Analysts are of the view that
Steel Association's latest such is the market condition in
reports, steel production fell Europe that Tata Steel could
8.7 per cent in the European not have escaped job cuts even
Union region in October; com- if its planned merger with
panies have announced Thyssenkrupp would have
production cuts of at least been a success.
15 million tonnes this year. Both companies had
Also, global crude steel pro- released statements to this
duction has declined 2.8 per effect in 2017 when the merger
cent year-on-year in October as talks were initiated.

Aerospace Industries (IAI),

which had converted these
planes into freighters,
demand for EMI financing in
India. Under the partnership,
Northern Arc Capital has depl-
head, Shankar to oversee Hotstar
according to a regulatory oyed $14 million and plans to VIVEAT SUSAN PINTO Star eventually took full control
filing. "During an internal fund various products offered Mumbai, 13 December and ownership of the channel in
examination of IAI's by ZestMoney in a phased 2014 by which time Madhavan
manufacturing facilities, a manner. ZestMoney aims to Media veteran K Madhavan has had taken Asianet to other mar-
potential defect was disburse $400 million in the been appointed the country kets in the south, sources said.
discovered in the process used next year to improve access to head of Star and Disney India in But handling national tele-
to manufacture the 9G rigid credit in India where credit a top-level reorganisation vision operations will not be easy
barrier installed on these card penetration remains very announced on Friday. at a time when the broadcasting STATE OF OVERSEAS OPERATIONS (~ crore)
aircraft. PTI< low. BS REPORTER< The rejig will also see Uday market in India is heading Year-end Net Employee Emp cost/ Total
Shankar, chairman of Star and towards a consolidation. Sony (Mar) sales cost total exp % expenditure
Disney in India, directly over- Pictures Network is talking to
2007 7,659 433 5.7 7,646
seeing Hotstar, pitting him billionaire Mukesh Ambani’s
Vote for NBCC offer: Jaypee against former colleagues Sanjay
Gupta and Ajit Mohan, who now
K Madhavan (left) has been MD of Star’s south business since
2016; Uday Shankar’s appointment pits him against his
Network18 Media & Investments
for a possible stake buy. Some
2008 1,11,846 15,096 14.6 1,03,678
2009 1,23,016 15,680 13.5 1,15,860
buyers' body to flat owners head Google and Facebook,
respectively. Madhavan’s appoi-
former colleagues Sanjay Gupta and Ajit Mohan, who now
head Google and Facebook, respectively
other options on the table
include a merger of the enter-
2010 77,371 14,121 17.8 79,439
Jaypee Infratech's homebuyers association has urged all flat ntment is effective from January tainment businesses of Sony 2011 89,357 13,003 15.2 85,275
owners and lenders to vote in favour of state-owned NBCC's 1. In an internal note to employ- directly to Gupta, who was ele- Hindi and regional languages, and Network18. The latter has a 2012 98,966 14,181 14.4 98,651
bid to acquire debt-laden realty firm as the public sector firm ees, Shankar, who is also presi- vated to country manager of as part of his new role. 51 per cent stake in Viacom18,
has experience to develop large projects and townships in the dent of The Walt Disney Star and Disney in April. He was “Star is seeking continuity the joint venture that runs the 2013 96,512 15,310 15.1 1,01,163
National Capital Region. NBCC and Suraksha Realty are in the Company Asia-Pacific, said: managing director of Star India with the elevation of Madhavan. Colors entertainment channel. 2014 1,06,903 16,630 16.1 1,03,572
race to acquire Jaypee Infratech through the ongoing “For the time being, I shall have earlier. Madhavan, the Number He is a seasoned hand, who’s According to the data by the 2015 97,719 16,806 16.9 99,546
insolvency process. On December 7, a committee of creditors a direct oversight on Hotstar. 3 in the pecking order at Star, been in the system for long,” Broadcast Audience Research
(CoC) decided that homebuyers and lenders of Jaypee And the Hotstar leadership will has been managing director of said a media industry executive, Council, Star’s All-India viewer- 2016 63,696 13,268 20.3 65,415
Infratech will vote on the bids of NBCC and Suraksha Realty at work directly with me.” its south business since 2016. In who knows Madhavan well. ship (excluding news) stands at 2017 64,306 12,647 18.1 69,977
the same time. The voting process started on December 10 and Both Gupta and Mohan have April, he was elevated to run all Formerly with Asianet, 20 per cent, Zee Entertainment
2018 63,632 12,141 20.5 59,309
will continue till December 16. As many as 13 banks and over worked on the Hotstar business regional language channels Madhavan joined Star in 2008 comes close at 18 per cent, while
23,000 homebuyers have voting rights in the CoC. Buyers have while at Star. Mohan was the within the Star network. He will after the latter acquired a 51 per Sony Pictures Network and 2019 87,058 13,628 17.5 78,014
around 58 per cent votes. For a bid to be approved, 66 per chief executive officer of Hotstar oversee all television operations cent stake in the channel, pop- Viacom18 have a 9 per cent share Above figures include South East Asia business, which has miniscule
contribution to overseas operations
cent votes are required. PTI< till the end of 2018, reporting for the broadcaster, including ular in the Kerala market then. each in the market. Source: Capitaline; Compiled by BS Research

RedBus riding on transport Porsche’s bet: Rich Indians will show off EVs
corporations to drive growth ANURAG KOTOKY
13 December

Porsche plans to start selling its

SAMREEN AHMAD
Bengaluru, 13 December
Online bus ticketing platform RedBus
has set its sights on the untapped road
transport corporations, which do not
have the technology backbone to
support online bookings from
third-party channels.
Over the next four years, the
Bengaluru-headquartered firm is
expecting to derive 25 per cent of its
revenues from government transport
corporations, as compared to 9-10 per
cent now, said Prakash Sangam, chief
executive officer of RedBus.
Despite the online travel booking
in the country seeing a huge surge in
the past years, the corporations rely
heavily on offline ticket booking that
accounts for 90 per cent of their busi-
ness. RedBus, which has tied up with
22 such corporations, is pushing to
make further inroad into this segment
by offering technology solutions for
monitoring of the fleet and passenger
safety in addition to the core invento-
ry management platform.
The firm plans to engage with the
Karnataka State Road Transport
Corporation and the Punjab State Bus
Stand Management Company to bring
them on its platform. According to
Aryaman Tandon, director at Praxis
Global Alliance, bus transport market
stands at $100 billion. “Players like
RedBus have a significant opportuni-
ty at hand not only for booking but
many other business opportunities
within the road public transportation
segment,” he said. About three years
ago, when MakeMyTrip was in talks
to merge with the Ibibo Group, the idea
was to consolidate operations in the
online accommodation booking space.
RedBus, which was part of Ibibo,
was also brought on board to be a part
of this three-dimensional combined
entity as Nasdaq-listed MakeMyTrip
saw it as a complimentary product to
the travel and hotel bookings space.
RedBus, which had higher volume of
transactions than the combined
“OVER THE NEXT FOUR YEARS,
THE FIRM IS EXPECTING TO
DERIVE 25% OF ITS REVENUES
FROM GOVERNMENT
TRANSPORT CORPORATIONS,
AS COMPARED TO
9-10 % NOW”
PRAKASH SANGAM, CEO, RedBus
MakeMyTrip and Ibibo, was growing
25 per cent year on year. The compa-
ny’s growth rate is now 40 per cent
year on year with compound annual
growth rate of 50 per cent for the past
two financial years. “When we were
part of Ibibo, the real focus was on
growing hotels, but after merger, the
combined resource was put to drive
growth opportunities in RedBus as
well,” said Sangam. RedBus is looking
at providing the road transport cor-
porations with inventory manage-
ment and ticketing tool that helps
them distribute the inventory to book-
ing agents, connect with booking
counters, and online platforms.
electric Taycan model in India
next year, in a bet that ultra-rich
Indians are willing to splash
out as much as $370,000 on
an electric car to boost their
street cred.
Local duties in India make
imported luxury cars about 2.5
times more expensive than what
they cost in Europe — a reason
cited by Elon Musk for ignoring
the market so far — but that’s no
deterrent for prospective buyers,
accordion to Pavan Shetty,
director at Porsche India.
The Taycan “will open up a
completely new segment of
customers, who are not only
sport-car owners, but people who
are sport-car owners and also
want to be clean and
environmentally friendly,” Shetty
said in an interview in New Dehli.
“We all want to be responsible,
but it’s more prevalent in the rich
because they have an option and
the resources.”
India churned out
millionaires at the fastest pace in
Asia in 2017, according to a
Capgemini SE report released last
year, but its economy has slowed
since then, hitting everything
from the purchase of cars to
consumption of cookies. Auto
sales in India — where cleaner
vehicles have yet to make a dent
on the industry — extended their
longest-ever losing streak in
November, falling for 13
consecutive months, although
new sport-utility vehicles
still surged.
Porsche, which sells 350-450
cars a year in India, is looking for a
boost to those figures when it
launches its new Cayenne Coupe
on Friday, followed by the Taycan
by July. It unveiled the latter in
China, Germany and Niagara
Falls in September, with a starting
price outside India of $150,900
and a potential base version
costing below $100,000. That
underscores the model’s central
Porsche launches Cayenne Coupe
role in parent Volkswagen AG‘s Luxury sports carmaker Porsche on Friday launched
push to become a leader in Cayenne Coupe, priced up to ~1.98 crore. The model shares the
battery-powered vehicles. same technical attributes as the third generation Cayenne, and two
Musk, the billionaire founder derivatives of it — Cayenne Coupe and Cayenne Turbo Coupe — will
of Tesla Inc, has in the past cited be available, the company said in a statement. While the Cayenne
challenging government Coupe is priced at ~1.32 crore, the Cayenne Turbo Coupe is tagged at
regulations as a hurdle in India, ~1.98 crore, it added. The vehicle is powered by a three-litre V6 turbo
and is holding out for a temporary engine with an output of 340 hp, able to accelerate from 0 to 100 km/h
waiver on import penalties and in 6 seconds. PTI
other restrictions before agreeing
to build a local plant. Musk said in
March he would “love to be” in Iconic British brand MG “I strongly believe that luxury
India this year or next, but a firm Motor, now owned by Chinese adopts technology much faster
plan has yet to be announced. giant SAIC Motor Corp, and South than general automobiles,”
“That is Elon Musk’s Korea’s Hyundai Motor Co are the Shetty said. “We’re entering a
problem,” Shetty said. “We are only international carmakers that phase where the rich are
not a blind volume chaser. You currently sell electric vehicles in necessarily global citizens. If you
can’t change the laws of the land. India, where the best-selling gas own a Porsche, you don’t need an
The question is do you want to do guzzler costs just $4,000, still introduction. You’re already
business or do you not want to do double what an average Indian someone, it becomes your
business. I want to do business.” earns in a year. identity.” BLOOMBERG