Daily Economic News - 13 August 2014

Chinese brands Konka, TCL plan re-entry into Indian duables market
Chinese brands Konka, TCL, Haier and Midea are preparing to make a dent in the Rs 40,000-crore Indian durables market through brand licensing and joint ventures, where Koreans and Japanese firms enjoy brand equity. In India, most Chinese brands have underperformed because of perception regarding product quality. These brands are now trying to overcome this with higher investments
TCL, which had entered India a few years ago with lowpriced TV sets, currently, sells its Alcatel brand mobile phones in India. Haier India has 4-5 per cent market share in India. The company will invest Rs 100 crore by 2015 to expand capacity at its Pune plant, launch brand stores and premium models like side-byside refrigerators and wine cellars. Haier India, which reported Rs1,500 crore sales last fiscal, aims to break into the top five durable makers in the country in two years by setting up a second plant in north India.
(Source: The Economic Times)

Infrastructure sector high on M&A, fund-raising deals
The sector — which has been struggling for years due to slowdown in government's decision making, issues over land acquisition and environment, and poor financial health of private sector developers — is suddenly abuzz with activity.
Over the past three months, companies such as Jaiprakash Associates, GMR InfrastructureBSE -2.96 % and J Kumar Infrastructure have together raised Rs 5,000 crore through qualified institutional placement (QIP), or share sale to qualified institutional buyers (QIBs).
RBI's decision to exempt long-term bonds raised for infrastructure projects from the mandatory regulatory norms such as the cash reserve ratio, the statutory liquidity ratio and priority sector lending will go a long way in pumping fresh funds into the sector. National Highways Authority of India plans to award more cash contracts for building roads, in a deviation from its strategy of awarding projects under the PPP model, to boost activity.
(Source: The Economic Times)

July retail inflation inches up to 7.96 %
The moderation in prices witnessed in June did not hold up in the month of July. Pushed up by a steep rise in vegetable and fruit prices, the rate of growth of retail inflation inched up to 7.96 per cent. The renewed trend in price rise was seen even as the Modi government launched in July a multi-pronged attack to cool food prices including a move to make hoarding a non-bailable offence and export curbs. The government has declared price control a top priority. Some improvement was seen in July with higher rainfall reducing the deficit from 44 per cent to 18 per cent as of August 6. The progress and distribution of rainfall, however, remains uneven.
(Source: The Hindu)

Industrial output growth slows to 3.4% in June
Showing signs of sluggishness inthe economy, growth rate of industrial production slowed to 3.4% in June, as against 5% in May, mainly due to lower output of consumer goods. However, the factory output number has remained in the positive territory for the third month in a row mainly due to a better show by manufacturing, mining and power sectors and higher output of capital goods. Manufacturing, which constitutes over 75% of the index, grew 1.8% in June, compared to decline in output by 1.7% a year ago. For April-June, the sector grew at 3.1% growth, compared to the contraction of 1.1% in the year-ago period.
(Source: Hindustan Times)

Thaiindianet. Team

13 August 2014