Business News - English

After General Motors (GM) cut 164 jobs, Ford, on Monday announced that over 300 workers had been temporarily laid off due to "knock-on effects" from the ongoing strike against the company and two other US automakers. The strike against the "Big Three" car manufacturers -- Ford, Stellantis and General Motors -- began on September 15 when a previous contract expired without a replacement. Instead of calling for all of its 146,000 members to strike at once, the United Auto Workers (UAW) union has deployed a targeted approach, adding more sites as the weeks drag on. "Our production system is highly interconnected, which means the UAW's targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage," Ford said in a statement on Monday. "Approximately 330 employees have been asked not to report to work," the statement added, saying the total number of "strike-related layoffs" at Ford now totalled 930. Ford said its sites impacted by Monday's announcement were in Chicago, Illinois and Lima, Ohio. Stellantis and General Motors have also reduced staff at several sites for the same reasons. Initially, the UAW called on some 13,000 members at the three automakers to stop work, then added another 5,600 a week later due to lack of progress in negotiations. A further 7,000 were added the following week to bring the total to some 25,000.

Work from Office: IT majors Wipro, Capgemini, LTIMindtree have begun nudging their employees to work from office on all or at least 50% of the working days in a week, reported Economic Times. As per the report, this push to return to office is being implemented by IT/BPM and some technology companies across the country through verbal and informal communication channels. This comes as the industry is facing client demand crunch due to the global macroeconomic crisis which is squeezing tech spending. Also Read: TCS abandons hybrid work, mandates full office attendance from October 1 IT Companies' Mandate As per Economic Times, several companies in Bengaluru and Pune have also issued similar mandates to their employees. Among them are the Indian units of Sweden-based Ericsson and US-headquartered Fiserv. Both multinationals have asked their employees to work from office (WFO) at least three and five days a week, respectively, starting from October/November, the report further said. While Ericsson has mandated a 50-50 split, Capgemini's employees in India are required to attend the office thrice a week. As per Economic Times, the firm’s senior management has now requested its managers to send “feelers” on getting their team members back to attending office for all working days. Capgemini's CEO has also told the publication that the company will be taking into account the personal situations of employees and will not be “abrupt” in pushing them to return to office. This move by the IT majors come three years after setting up the hybrid work owing to the covid-19 pandemic. TCS Ends WFH Earlier, TCS has announced that it is discontinuing hybrid working system and mandated all the employees to come to the office for five days a week, starting from October 1, 2023. In its FY23 annual report, TCS emphasized the importance of employees returning to the office. The report noted that more than half of the company's workforce was hired after March 2020, and these newer employees benefit significantly from physical interactions with senior colleagues and leaders to assimilate and learn from their behavior and ways of thinking.

Amazon India is set to kick off its annual festive season sale, the 'Amazon Great Indian Festival,' on October 8, with exclusive early access for its Prime members starting a day earlier. The company will offer products from a staggering 12 lakh sellers during this upcoming festival sale. In a statement, the company expressed, "The highly anticipated festive extravaganza in India, 'Amazon Great Indian Festival' (GIF), is scheduled to commence on October 8, granting 24 hours of early access to Prime members."Deals on smartphones, tablets, earphones, moreShoppers will get significant discounts on a wide range of products, including smartphones, laptops, and home appliances.The company has confirmed that the base variant of the iPhone 13 will be available at an all-time low price of less than Rs 40,000. Similarly, the MacBook Air has also received a massive price reduction and is currently available for Rs 69,990. Interested buyers can expect discounts of up to 89 percent on various gadgets, including the Samsung Galaxy S23 Ultra and Motorola Razr 40 smartphones, as well as laptops, smartwatches, and more. SBI cardholders can enjoy an extra 10 percent discount. Survey on online shoppingAccording to a recent survey conducted by Nielsen Media on behalf of Amazon India, more than 77 percent of consumers emphasized that online festive shopping events enhance the convenience of their online shopping experience, thanks to options like expedited delivery. The survey also revealed that 76 percent of Indian consumers tend to purchase luxury and authentic beauty brands during online festive shopping events. Manish Tiwary, Vice President & Country Manager, India Consumer Business at Amazon, stated, "We are all set to deliver 'boxes of happiness' to our customers all over India. Customers will gain access to thousands of new product launches from top brands and hundreds of thousands of sellers across the country. Our teams, including our dedicated delivery associates, are enthusiastic about making Amazon Great India Festival 2023 the most significant one yet for millions of customers across Bharat."

In a tragic incident, Indian billionaire and Mining tycoon Harpal Randhawa, his 21 year old son Amer and four others were killed in a plane crash in Zimbabwe along with four others on Friday. According to media reports, their private flight crashed near a diamond mine in Southwestern Zimbabwe. The plane crashed in the Zvamahande area of Mashava, reported news media website, iHarare. The report further states that the crash happened due to a technical fault that might have led to mid-air explosion. Also Read: Titan submersible: Victims' families can still sue owner OceanGate, despite liability waivers Randhawa and his son were travelling in a Cessna 206 aircraft, privately owned by RioZim. As per PTI, the single-engined aircraft crashed near the Murowa Diamonds mine, which is partly owned by RioZim Zimbabwe journalist Hopewell Chin’ono who is also a friend of Randhawa posted in X that Randhawa's family has arranged for a memorial service on Wednesday in Zimbabwe. The family of Harpal Randhawa who died with his son Amer on Friday in a plane crash, respectfully invite all his friends and associates to celebrate his life and that of his son Amer at a memorial service at Raintree on Wednesday the 4th of October, 2023.Arrival time is 3PM.… pic.twitter.com/cWF0kPhe7G — Hopewell Chin’ono (@daddyhope) October 1, 2023 Meanwhile, the police are yet to release the names of the deceased. As per the Herald, the police have only confirmed that two Zimbabweans and four foreigners were killed in the crash. “The Zimbabwe Republic Police reports a plane crash which occurred on September 29 between 7.30 am and 8 am, where six people are confirmed dead,” police said. Harpal Randhawa's company RioZim also confirmed the plane crash said it was working with relevant authorities to gather more information. Harpal Randhawa Harpal Randhawa is the owner of of RioZim, a diversified mining company producing gold and coal as well as refining nickel and copper. RioZim partly owns the Murowa diamond mine in Zimbabwe. Harpal was also serving as the Chairman of GEM Holdings, founded by him in July 1993. GEM Holdings, a private equity firm, is now worth $4 billion. Meanwhile, his son Amer Randhawa is a trained pilot

Gold rate today slipped further and hit seven month low in both domestic and international markets on Tuesday. The average price of 1 gram of 22K Gold stood at ₹5,260 while the 24K gold prices stood at ₹5,738. The rate of 10 grams of 24K gold in Chennai stood at ₹57,710, which was followed by Delhi and Lucknow where the gold costs ₹57,380. The average price of 10gm of Silver was at ₹710 and 1 kg of silver stood at ₹71,000. However, in Chennai, Hyderabad and Kerala the metal was sold at ₹77,500, followed by Mumbai and Delhi where the metal was sold at ₹74,700 Indian Major Cities 24 Carat Gold Rate per 10gm Today October 03 Delhi - ₹57,530Chennai - ₹57,710Mumbai - ₹57,380Kolkata - ₹57,380Bengaluru - ₹57,380 Indian Major Cities 1 KG Silver Rate Today October 03 Delhi - ₹71,000Chennai - ₹73,500Mumbai - ₹71,000Kolkata - ₹71,000Bengaluru - ₹71,500

DLF Project: DLF's Panipat project reportedly was sold out within an hour of launch generating Rs 200 crore. The biggest realty developer in National Capital Region has ventured into the tier 3 market with a 10-acre plotted development project in Panipat, Haryana. Demand for Plotted Projects As per Economic Times, DLF project was sold at 15-25% premium compared to its competitors. DLF is also pushing large-scale projects for the second half of the financial years and is focusing on plotted and low-rise developments to generate revenue. Also Read: 670 Godrej Properties' Apartments worth Rs 2,000 crore sold in Noida “DLF is already there in Panchkula, and the Panipat land was old, which it monetised at the right time. The project was sold at a 15–25% premium compared with its competitors. There is a lot of demand for plotted projects in these small towns within 2-3 hours driving distance from Delhi”, a market expert told Economic Times “There are two big projects coming up in Gurgaon, while another project is lined up for launch in Mumbai. Since there was no major launch in the first two quarters, DLF focused on clearing small projects and generating cash flow to meet the guidance for the year,” another market expert tolf Economic Times. DLF has sold low-rise apartments worth Rs 7,650 crore in the NCR and Panchkula, since october 2020. The real-estate giant is also set to launch projects worth Rs 20,000 crore this fiscal year, with the combined value of two upcoming projects in Gurgaon estimated to be Rs 15,000 crore. Projects in Tier-3 Cities Realty developers including Godrej, Eldeco, Trident Realty, Mapsko, M3M, and Alpha have also initiated projects in smaller towns such as Alwar, Sonepat, Panipat, and Meerut, among others. The smaller cities around Delhi like Meerut, Karnal, and Alwar will soon connect to Delhi and Noida via brand new rapid train corridors that are separate from the congested century old rail roads. As per Economic Times, experts globally said that many buyers seek destinations within 2-3 hours by car from their main city base for a spacious second home. With hybrid work cultures becoming more prevalent, many people are moving back to their hometowns, driving residential property demand.

Stake Sale: The promoters of India's largest luggage and travel accessories maker VIP Industries are considering to sell the company's stake reported Mint. As per the report the deal which includes a potential open offer could be worth as much as $1 billion. The deal will see the exit of the promoters from the business. The promoters have roped in the investment banking team of InCred Capital to manage the sale. Booming Travel Sector Mint quoted an Investment Banker who is aware of the deal and said that Private Equity firms are most likely interested in the deal due to India's growing travel market. Also Read: Saregama acquires majority stake in Pocket Aces, a digital entertainment company The travel industry in India is growing rapidly due to increased income, an expanding travel infrastructure and growing online booking. This leads to a rise in demand for luggage. As per Mint, VIP Industries, which holds a substantial market share in this rapidly growing sector, offers a lucrative opportunity for PE firms to tap the burgeoning demand for travel-related products from India’s increasingly mobile middle class. “Indians are travelling more. Having a single suitcase or satchel for travel at home will no longer suffice for the growing Indian middle class. PE firms interested in the Indian consumer will consider this aspect when bidding for the asset," an investment banker aware of the deal told Mint. The banker further added that the deal might take a few months to complete the transaction. VIP Indsutries Over 50% of VIP Industries is owned by Dilip Paramal led promoters group. The market value of VIP Industries is around ₹9,310 crore, valuing the promoters’ stake at about ₹4,650 crore. Funds acquired by Premji Invest acquired a 1.66% stake from the promoters of VIP Industries in September 2021. As per ICICI Securities analyst report, VIP has close to 44% market share in the organized luggage category.

The deadline for the exchange and deposits of the ₹2000 notes has been extended to the 7th of October. In a notification the Reserve Bank of India said, "As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit / exchange of Rs 2000 banknotes until October 07, 2023. RBI's press release also pointed out that out of the total value of ₹3.56 lakh crore of ₹2000 banknotes in circulation as on May 19, 2023, ₹3.42 lakh crore has been received back leaving only ₹0.14 lakh crore in circulation as at the close of business on September 29, 2023. This means that effectively 96% of ₹2000 notes have since been returned. Importantly, the RBI has also reiterated that Rs 2000 banknotes will continue to be legal tender. RBI's earlier deadline for deposits & exchange of ₹2000 notes was September 30, 2023. It was on May 19, RBI announced the withdrawal of Rs 2,000 currency bills from circulation as part of its clean-note policy.

Tata Consultancy Services (TCS), India's largest IT company, is discontinuing its hybrid working policy. As per a report by CNBC-TV18, an internal communication was circulated earlier this month wherein the company has mandated that all employees must return to the office for five days a week, starting from October 1, 2023. Currently, employees are required to be in the office for only three days a week. The official communication states, "As communicated by the CEO and Chief Human Resources Officer (CHRO) in various town hall meetings, it is now mandatory for all associates to be present in the office on all working days (5 days per week if there are no holidays) starting October 1, 2023." In its FY23 annual report, TCS emphasized the importance of employees returning to the office. The report noted that more than half of the company's workforce was hired after March 2020, and these newer employees benefit significantly from physical interactions with senior colleagues and leaders to assimilate and learn from their behavior and ways of thinking. It's worth noting that TCS allocates more than half of its revenue to cover employee benefits. In FY23, the company dedicated as much as 56.6 percent of its revenue to employee benefit expenses. TCS is the largest private employer in India, with a workforce of over six lakh (600,000) employees as of March 2023. Consequently, this change in policy may have a significant impact on a large number of employees who will now need to commute to the office. Previously, in May 2020 during the first wave of the pandemic, TCS's then-CEO, Rajesh Gopinathan, introduced the "25x25 model," with the goal of bringing back 25 percent of the workforce to the office by the year 2025.

Vedanta Limited, led by billionaire Anil Agarwal, has announced a significant move towards value creation by demerging its business units. The conglomerate plans to establish six separate listed companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited.This decision aims to create independent verticals for metals, power, aluminium, and oil and gas businesses. The demerger is structured as a vertical split, with shareholders receiving 1 additional share of each of the five newly listed companies for every 1 share of Vedanta Limited they hold. The move is anticipated to unlock the potential value of each business unit, allowing for faster growth and independent management strategies. Anil Agarwal, Chairman of Vedanta, highlighted the rationale behind the decision, stating, “By demerging our business units, we believe that will unlock value and potential for faster growth in each vertical. While they all come under the larger umbrella of natural resources, each has its own market, demand and supply trends, and potential to deploy technology to raise productivity.” The appointed leaders for the new entities include John Slaven for Vedanta Aluminium, Vibhav Agarwal for Vedanta Power, Chris Griffith for Vedanta Base Metals, and Arun Misra for Vedanta Limited. The conglomerate, known for its diverse portfolio in metals and minerals, oil and gas, traditional ferrous vertical, and power, is also venturing into the manufacturing of semiconductors and display glass. Emphasizing their commitment to sustainability, Vedanta stated that each company resulting from the demerger aims to achieve net-zero carbon emissions by 2050 and net water positivity by 2030. They plan to invest $5 billion over the next decade to accelerate this transition. Notably, Hindustan Zinc, a Vedanta subsidiary, also disclosed plans for corporate restructuring to unlock growth, focusing on separate entities for zinc, lead, silver, and recycling businesses. Hindustan Zinc experienced a surge of almost 6 percent. Vedanta holds a 64.92 percent stake in Hindustan Zinc as of the June quarter shareholding pattern.Shares of Vedanta had ended 7 percent higher on Friday in what was its best single-day performance in 2023. Shares of the Anil Agarwal-led mining conglomerate fell to a 31-month low earlier this week following Moody's Investors Service's downgrade of some of the bonds issued by its parent company Vedanta Resources Ltd. and its wholly-owned subsidiaries, as per a CNBC-TV18 report. Vedanta's parent company faces repayment of notes worth nearly $2 billion in 2025. Including these bonds, the company is facing debt repayment worth $3.6 billion in the next financial year, according to Kotak Institutional Equities.