British Banking giant HSBC has said that it will end its private banking business in India. The move is said to be because of ongoing investigation by Income Tax department against individuals who have undeclared accounts in Swiss Bank . The company plans to complete this move by first quarter of 2016 and move some its customers to premier banking . According to a HSBC spokesperson ” We will work closely with our clients to minimize the impact of this decision on them, offering them the choice to move to HSBC Premier, our global banking and wealth management proposition, wherever appropriate. n view of the tax evasion inquiry, HSBC’s private banking compliance was enhanced, as a result of which it became impossible for them to do business with these very demanding high net worth clients
The move can be attributed to the names of the account holder the Income Tax department revealed who have undisclosed amount and swiss bank accounts. Names of almost 1200 account holders were revealed by a investigative journalist in February this year.
The closure of the bank would not lead to any job losses as according to senior executive of the bank ” There are about 70 people in the business here. Some of them will move out and likely take their clients with them. We are already exploring what opportunities it holds for us.
HSBC is said to be one of the top private banker of the country as it managed funds of worth more than $2 billion . It had about 1000 clients and was among the top banker in the country. It will be interesting to see how this move effects the global business of the bank.
E-commerce giant Snap deal has helped Aamir Khan to grow his ad volume by 441% in last one year. His rank improved from mere 57th to 19th in terms of total amount of time he was seen in Television . The actor has endorsed 10 brands from January to October 2014 while this year he endorsed only 2 brands Incredible India and Snapdeal in the same period .
It was not easy for Snap deal to rope in Khan as they had to convince the actor with various factors and trust quotients before he signed with them. According to a senior snap deal executive “We wanted to change Snapdeal’s branding and Khan was the right candidate for the job. He decided to do it after a very long presentation.” It is believed that the actor charged 15 crores for a four day shoot with the company. According to sources he is one of the highest paid endorser of the country .Salman Khan is the costliest as he charges Rs 6 crore a day for a brand campaign.
The current controversy made Snap deal’s story a bit difficult as he people took on google play store and social media to decrease the app Star rating and also uninstall the application. People started a campaign naming #appwapsi and uninstalled the application in the protest to what the star said about growing in tolerance in the country .Snap deal later issued a statement stating that they distance itself from the star and his opinion in this topic.
The controversy won’t affect the star much as he has said that he will stand by his words. According to brand expert Harish Bijoor “Contrary to public opinion, Aamir Khan’s brand value will not suffer because of this one incident. He did a good thing by standing by his statement. People expect their heroes to do the same. One more hit, and he will be up there. The share in ad volumes for Aamir Khan in 2015 between Incredible India and Snapdeal is around 55:45”.
Tata steel has decided to cut 1,200 jobs from its British entity . The company blames cheap imports from China as the major reason for decrease in revenue from the company .The company laid off 4000 UK steel jobs this month and there might be some more pink slips in the near future. The company is blaming on Chinese steel imports as the steel manufactured in Britain cost much higher as compared to its Chinese counterpart. China manufactures 1.6 billion tonnes of steel e very year with 100 million off steel in exported . Chinese manufactured as blamed for selling their steel at much lower prices than the fair value and this has caused the native steel manufacturers great amount of losses. The lay off comes at time when Chinese Primere Presedent Xi is set to travel to Britain this month.
Ina statement issued by Business Secretary Sajid Javid ” We will demand action wherever there is evidence of unfair trade. We will … look at what the government can to do to boost productivity and to cut production costs. There are limits to what the government can do. No government can change the price of steel. No government can dictate foreign exchange rates and no government can simply disregard international regulations on free trade and state aid”.
The steel union of the country is very angry with the present government with Roy Rickhuss, General Secretary of steel union Community issuing a strong statement against the Prime Minister David Cameroon ” The government should hang its head in shame. It is not enough for David Cameron to “raise” the issue of steel dumping with the Chinese, he should be telling them what action he will be taking to stop steel dumping.”
Labour party’s business spokesman Kevin Brennan added ” While the Chinese president is riding down the mall in a gilded state coach, British workers are being laid off because our government is not standing up for them.”
The situation is not standalone in UK as steel manufacturer in USA are also reeling under to cut jobs as profits have been shrinking recently due to cheap Chinese imports
Sports Ecommerce company Sports 365 which is backed by Indian Tennis legend Mahesh Bhupathi plans to be a 1,000 crore entity in next five years. The company is focusing on new in – house brands and new institutional clients. Company’s co – founder Aashutosh Chaidhari is quite happy with the growth the company has shows since incubation . According to him ” We would be adding new business on top of the existing ones as we are creating various small online portals. Apart from that we are also building our in-house brands in areas such as fitness. We are looking at shoes, apparels, accessories etc. We are tying up with at least 15 brands, which are not present in India but they are big.”
The company is backed by top sports icons like Yuvraj Singh , Deepika Palikal and Bollywood star Lara Dutta . Mahesh Bhupathi is one of the director of the company . Both Mahesh and Lara are partnering with Indian and International sports brands and focussing on tapping the great Indian Ecommerce market .
The company plans to increase its turn over by 40-45 crore and is growing rapidly with 100 % growth rate. The company is trying to capture market share by acquiring small partners and has recently acquired tennishub.in , an online tennis store. According to the CEO of the company Chandra Shekhar ” Last December, we raised USD one million and now we are in active conversations to raise between USD five to eight million in next eight to ten weeks. Presently, we have around 250 institutional customers at Bengaluru, Hyderabad and Chennai and we have plans to expand to six to seven cities going forward, as Delhi and Mumbai.”
The company is also providing sports infrastructure and sports consulting to various schools and colleges and local clubs across the country.
Air Asia India reports a quarterly loss of 41.3 million between the period July & September .The amount has trebled as compared to last year in the same period. The company doubled its revenue to 131 .2 crore . The airline carried 4,16,182 passengers in the period while it increased its net passenger carrying capacity by 221% to 545,760 seats. The load factor increase was low at 1 % though which shows that the airline is not in great demand as compared to other airlines. These results are not in sync with the company’s esteemed founder Tony Fernandes who said that the company will make some profit in October December period. Earlier he said “There is only one profit in my mind and that is net profit.”
These are not the good times of the company as the airline as posted losses in most of its sectors in various countries like Malaysia, Indonesia, Phillipines and Japan. The company made profit only in Thai Air Asia only .
Dell ventures , the venture capital firm of Computing giant Dell Is planning to invest in Indian startups as part of its strategy to get an stronger footprint in India. Dell believes that by investing in Indian stratup ecosystem they would be able to gain a global footprint and the move would help them cater the Asian market well. The company plans to formally announce this move soon and officially announce the strategy to move in this direction.
In an interview given to ET , Amit Midha, president of Asia-Pacific and Japan said “”We’re investing to innovate in India, to innovate in Asia, to create an outreaching ecosystem in Asia which is different. We announced Dell Ventures in China, we announced a $125-million investment in China and we’ve also announced a continued expansion in India, from a 27,000-people perspective.”
“We are looking at cloud, IoT (internet of things), big data and security. We like to look at startups that have gone beyond the 5-people operation stage. Otherwise it becomes too much of a headache for us. The company needs to have some sort of momentum, some customer traction — we are not an accelerator, we are more interested in companies that are growing their businesses. And our involvement will help them grow even faster and also give them credibility points”
The investment arm Dell venture was established in early 2000 but has been in a dormant state in recent times. The company would like to focus on startups which are creating solutions in newer technologies such as cloud computing, security and analytics.They would invest in both early stage and later stage companies.
According to Midha companies iconic founder Michael Dell is very keen to invest in Indian market and would monitor the deals very closely.
Spice jet has becomes world’s top performing aviation stock in last one year by increasing four fold from its current value. Aviation industry has benfitted to a greater extent in recent times due to lower crude oil prices and a big boost in passenger traffic.
The company outperformed its international customers like El Al Israel Airlines, Hawaiian Holdings, China Southern Airlines and Qantas Airways. Among other aviation players , the freshly listed Indigo also realized a 42% increase in its stock from the day of its filing on the stock exchange. All the aviation companies are positive that they will have a happy end to the year with increase in passenger traffic and advance booking numbers which are on a high. The management is on high because of the surge but various research companies advice not to go on a buying spree as the stock has risen sharply in recent times and would correct soon.
In an interview given to ET G Chokkalingam, founder and managing director of Equinomics Research & Advisory said “I would advise existing investors to book profits in phases in SpiceJet stock, while newcomers should avoid this company because the stock has already run up sharply. Some of the global airline stocks have seen re-rating because of lower jet fuel prices, while domestic airlines are benefiting from the fact that India is becoming the fastest-growing airline market.”
Lets hope that this blue run continues for a longer period and help investors earn some good money in the near future.
The celebrated Yahoo’s chief executive Marissa Mayer is finding it difficult to generate support to continue her term. In a report which might be ahead of its time but is inevitable Marissa is not able to turn around the company as the board expected from her. The company’s stock has fallen almost 35 % in last one year and investors are not very optimistic with the leader’s initiatives. According to a hedge fund analyst Eric Jackson, This is like an ’emperor has no clothes’ situation. The company and the shareholders would be better served with her leaving.”
There have been a strong voice to fire Marissa from the board and Sun Trust Analyst Robert Peck even wrote a letter to the shareholders to do the “necessary” before it is too late. The company has not been able to make inroads to a profitable path accept for the Alibaba IPO which was a money spin off and made the company rich . Yahoo has a $30 billion stake of Alibaba.
Marissa’s rating has also decrease rapidly in recent times from 99% to 73% as reported by Employer review website glassdoor. This comes at a time when lot of senior executives left yahoo in last one year.
Marissa seems to be positive though and believe that company is in right direction and would turn around in near future . In a statement issued to shareholders she said “I have very aggressive expectations for Yahoo’s core business,” she said. “We have the right talent, the right strategy, and the right assets to drive long-term sustainable growth for our investors”.
The biggest cause of worry for the company is steep fall in Yahoo’s revenue from its core products . The company reported a 8% loss in the revenues other than adverting money that it is receiving.This is the steepest fall in Yahoo’s revenue in recent times. The company is not very positive in near future and there is belif that the revenue may decrease more to 20. This is a big blow to Mayer’s reputation as she came from an astounding background , google and was touted to be the next big thing in the Tech Circuit.
Marissa did tried her best to change the fortunes of the company by acquiring and investing in multiple startups like Flickr and even hiring celebrity News anchor Katie Couric to handle online video reports. She also acquired blogging service Tumblr for $1.1 but these moves are yet to pay her the dividends of the costly efforts.
It will be interesting to see in which direction the story goes as Yahoo’s previous Chief Executives have either been dumped or resigned .
Bollywood actress Shilpa Shetty along with her husband Raj Kundra today launched Viaan Mobile Phones. The brand is named after their three year old son Viaan. The couple launched five variants of the brand with a personalized service. The phones are priced between Rs 849 and Rs 12999.
According to Shilpa Shetty “The stats say that India happens to be the second-largest consumer of mobile phones. And that was the deal-clincher for us to even make a foray here. I’ve also heard that we buy around 2 crore phones in a month in just India and 80 percent of those phones are below 10,000 rupees. And we cater to that market. I think even if we are able to conquer around 2-3 percent, which is about 5 lakh mobiles in a month, we’ll be home and that’s what we’ve stepped out to do. For us in India, the choice was mass or class and we decided with Viaan to bring the class to the mass.”
Mr Kundra added that “I get to launch not only a mobile phone in this booming mobile phone market but it’s also on my son’s name. I’ve been part of this since inception and we’ve made sure that in this cluttered phone market, what could we do different than what’s been there and done already, We are the first Indian phone brand to launch simultaneously in seven countries”.
Viaan mobiles come with a personalized concierge service V assist that will help users 24 X 7 and offer it customers services in travel, entertainment, shopping, gifting and utilities – Assist will also promote services through their flagship shopping brand Raj Best Deal TV. According to Kundra “resonating with the brand name Viaan, meaning full of life and energy, we hope to provide consumers with smart phones that not only help them connect with loved ones but also take complete care of their needs. Viaan mobiles are trendy, strong and work on the latest technology”.
The phones will be initially launched in five variants V-1.8, V-Emerge, V-Empower, V-Encore and V-Eternal.
Ola has named Infosys vetran Rajiv Bansal as its chief financial officer . Bansal has a rich experience of 21 years and will join the on demand transporation major in January 2016. The current CFO Mitsh Shah will head the strategic finance team and will report to Bansal for various financial measures.
In an interview given to ET ,” Bhavish Aggarwal CEO of the company has said Rajiv’s understanding and expertise in the finance domain is extremely valuable for us at this juncture of growth.”
Ola recently received its final round of funding of $500 million from Baillie Gifford, China’s biggest taxi aggregator Didi Kuaidi and existing investors Falcon Edge, Tiger Global, SoftBank, and DST Global. The company is currently worth over $5 billion and has raised $1.3 billion so far.