1. Flipkart to reposition its brand
What's the news?
Flipkart is in the process of repositioning its brand as India’s largest online retailer looks to capture the next 100 million customers, a majority of which would come from tier-II and III towns. The company will continue to drive more usage among the existing 100 million users, who are present in metros and tier-I markets.
What's this brand?
The new brand called ‘Naye India ke Saath’, will focus on rolling out several ‘progressive India’ initiatives to create a more ‘relatable Indian brand’, as Flipkart will dial up on adding more affordability instruments which currently contribute to 15% of the overall gross merchandise volume (GMV). Read more.
2. Tata Sons sell stake in TCS to raise Rs 8,127 crore
What's the news?
Tata Sons on Monday sold a 1.48% stake in Tata Consultancy Services, its flagship IT services firm, to raise Rs 8,127 crore ($1.25 billion) as it looks to retire debt and invest in group firms across sectors such as auto and steel.
The stake sale — on Monday evening — was made through a block trade on the National Stock Exchange. The transaction was at a discount of between 4.17% and 5.9% to the stock’s closing price of Rs 3,052.15 on the NSE on Monday.
What could the money be used for?
Experts are of the view that the proceeds can be used to deleverage the balance sheet of Tata Sons, which paid $1.27 billion to Docomo to settle a dispute with the Japanese telecom giant after it exited their joint venture in 2013.
Tata Sons also has to repay debt of around Rs 35,000 crore owed by Tata Teleservices, which is now expected to merge with Airtel, industry sources said.
Tata Sons could also fund group companies such as Tata Steel, which is looking to purchase two steel firms — Bhushan Steel and Bhushan Power and Steel — both of which are admitted to the bankruptcy court. Read more.
3. IBM to increase mainframe business in India
What's the news?
Tech giant IBM has taken a strategic decision to increase its footprint in India through its mainframe business. The technology currently is available in two forms which is encrypted and open source.
How does IBM plan to do this?
To cater to Indian enterprises, IBM had beefed up its security features, which allows Mainframe users to encrypt data which is crucial to combat cyber attacks. However, the company claims that it has seen a double-digit growth over the last two years in its open source mainframe business. Read more.
4. A mechanism to compensate for fake products
What's the news?
The government is considering a mechanism to compensate consumers who happen to get a counterfeit product from an online platform, an official said on Monday.
The talks for such a system, which may be called ‘cashback’, is at a conceptual stage, the official, who did not wish to be named, said.
What issues are being considered?
The mechanism which the government is considering would be voluntary in nature. The issues which are under discussions including the mechanism to file a complaint for a counterfeit product and to establish whether the product is counterfeit.
The discussions for this are going on between e-commerce companies, the Department of Industrial Policy and Promotion (DIPP) and the Consumer Affairs Ministry. Read more.
What's the news?
Flipkart is in the process of repositioning its brand as India’s largest online retailer looks to capture the next 100 million customers, a majority of which would come from tier-II and III towns. The company will continue to drive more usage among the existing 100 million users, who are present in metros and tier-I markets.
What's this brand?
The new brand called ‘Naye India ke Saath’, will focus on rolling out several ‘progressive India’ initiatives to create a more ‘relatable Indian brand’, as Flipkart will dial up on adding more affordability instruments which currently contribute to 15% of the overall gross merchandise volume (GMV). Read more.
2. Tata Sons sell stake in TCS to raise Rs 8,127 crore
What's the news?
Tata Sons on Monday sold a 1.48% stake in Tata Consultancy Services, its flagship IT services firm, to raise Rs 8,127 crore ($1.25 billion) as it looks to retire debt and invest in group firms across sectors such as auto and steel.
The stake sale — on Monday evening — was made through a block trade on the National Stock Exchange. The transaction was at a discount of between 4.17% and 5.9% to the stock’s closing price of Rs 3,052.15 on the NSE on Monday.
What could the money be used for?
Experts are of the view that the proceeds can be used to deleverage the balance sheet of Tata Sons, which paid $1.27 billion to Docomo to settle a dispute with the Japanese telecom giant after it exited their joint venture in 2013.
Tata Sons also has to repay debt of around Rs 35,000 crore owed by Tata Teleservices, which is now expected to merge with Airtel, industry sources said.
Tata Sons could also fund group companies such as Tata Steel, which is looking to purchase two steel firms — Bhushan Steel and Bhushan Power and Steel — both of which are admitted to the bankruptcy court. Read more.
3. IBM to increase mainframe business in India
What's the news?
Tech giant IBM has taken a strategic decision to increase its footprint in India through its mainframe business. The technology currently is available in two forms which is encrypted and open source.
How does IBM plan to do this?
To cater to Indian enterprises, IBM had beefed up its security features, which allows Mainframe users to encrypt data which is crucial to combat cyber attacks. However, the company claims that it has seen a double-digit growth over the last two years in its open source mainframe business. Read more.
4. A mechanism to compensate for fake products
What's the news?
The government is considering a mechanism to compensate consumers who happen to get a counterfeit product from an online platform, an official said on Monday.
The talks for such a system, which may be called ‘cashback’, is at a conceptual stage, the official, who did not wish to be named, said.
What issues are being considered?
The mechanism which the government is considering would be voluntary in nature. The issues which are under discussions including the mechanism to file a complaint for a counterfeit product and to establish whether the product is counterfeit.
The discussions for this are going on between e-commerce companies, the Department of Industrial Policy and Promotion (DIPP) and the Consumer Affairs Ministry. Read more.