Mumbai firm Darwin Group submits bid to invest in grounded Jet Airways

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Ajay Harinath Singh, a Mumbai-based resident who claims to run diverse businesses across 11 countries, has submitted an offer to invest in Jet Airways.

Singh’s Darwin Platform Group (DPG) is the third unsolicited bidder to stake a claim for revival of the grounded airline. Others include former flight steward-turned-entrepreneur Jason Unsworth and London-based investment firm Adi Partners.Representatives of DPG, including its Chief Executive Officer Rahul Ganpule met executives of SBI Capital Markets on Wednesday. The meeting took place a day after top-level exits at Jet, which is seen as a pointer to airline’s uncertain future.

Lenders had called for bids last month and among qualified parties, only Etihad Airways submitted a conditional investment offer. The Abu Dhabi airline has said anyone investing more than 5 per cent in Jet should have its approval. Lenders continue to seek investors to turn around the airline and are meeting those making unsolicited bids.A report on Moneycontrol.com said a Russian aviation professional named Oleg Evdokimov, too, has submitted his expertise to turn around Jet but he is not interested in picking up a stake.

While continuing to engage with unsolicited parties lenders are taking their offers with a pinch of salt. “Discussions are going on to ascertain their seriousness. We have asked them for documents and proofs of investible funds,” said a source from the banking industry.


 DPG representatives told SBI Capital Markets they could invest Rs 14,000 crore in the airline and sought details of the company’s assets, liabilities and litigation. DPG website says Singh is a native of Sultanpur (Uttar Pradesh), with a royal-cum-business background and can speak Dutch, French and Russian language, along with other Indian languages. Singh’s business interests span across various areas like finance, farming and film production.

Hinduja group keen on Jet Airways takeover; seeks Naresh Goyal's consent

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The Hinduja group would be keen to take over Jet Airways, provided lenders agree to take a substantial haircut on their dues and founder Naresh Goyal gives his consent to the takeover. A top official of the group said it sees value in the airline, which is going through a crisis.

“We may look at the airline provided banks agree to take a haircut on debt. The high debt is unsustainable,” said a source close to the development. Jet Airways owes Rs 9,000 crore to banks and has defaulted to banks, suppliers and employees. Its operations have shut down due to lack of funds.
If both banks and Goyal agree, the group will start talks with Etihad, which had made a bid for the airline last week. Goyal owned 51 per cent stake in the airline of which 41 per cent stake is pledged with the lenders. “Goyal has run the airline like his own baby and we do not want to take any action unless he agrees,” the source said.

“Traffic from India is growing substantially and we think, in association with Etihad, we can turn around the airline,” the official said, adding that the group was contacted three days ago for a joint venture.

The airline industry in India has already witnessed similar meltdowns with SpiceJet making a spectacular turnaround after a similar situation. “The airline would need a professional management like other Hinduja group companies where the family members do not interfere in the day-to-day operations of any company,” said the source. Traffic from India is growing and there is a need for an another airline to meet the demand, he added.


The Hinduja group runs successful companies in India, including in commercial vehicle major Ashok Leyland, lubricants player Gulf Oil and has stake in IndusInd Bank. Jet Airways stock was down 4.18 per cent on Wednesday to close at Rs 123.7 a share.

Tata Chemicals transfers food and beverages business to Tata Global

Company News

The $104-billion Tata group on Wednesday announced that it was demerging the consumer products business of Tata Chemicals into Tata Global Beverages as part of a larger mandate to bring food and beverages under one unit.

The announcement brings to an end days of speculation and comes nearly two months after Tata Sons Chairman N Chandrasekaran restructured operations under 10 verticals at the conglomerate in a bid to streamline its business.

Tata Global will be renamed Tata Consumer Products after the demerger and will see its turnover rise 25 per cent to Rs 9,099 crore with earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 1,154 crore. The market capitalisation of the new entity will be Rs 18,000 crore at the current share price of Tata Global, said analysts, which is an increase of nearly Rs 5,800 crore over its Wednesday’s market capitalisation, which stood at Rs 12,500 crore.

Under the demerger process, 114 shares of Tata Global will be issued for every 100 shares of Tata Chemicals, taking the latter’s post-demerger share base to 920 million from 631 million now.
Also, Tata Chemicals will see its revenue (including inter-segment sales) decline by 15 per cent to Rs 10,336 crore.


 Apart from Tata Salt and Tata Sampann, which is into spices, pulses and snacks, the demerger will see the transfer of a little-known brand called Tata Dx, a detergent powder, to Tata Global. Launched by Tata Chemicals on a pilot basis in West Bengal in the March quarter, this brand is likely to get an aggressive push from Tata Global in future as it eyes a foray into home care. Top sources in the group say this is one of the key legs of the consolidation drive in consumer, which will unfold in the months ahead.

Jet lenders make last push to find investors to pick up stake in airline

Company News

Etihad Airways’ conditional offer to be a minority stakeholder in Jet Airways has thrown lenders into a tizzy. With little signs of any investor willing to buy 76 per cent, the lenders’ consortium led by State Bank of India has now initiated a process to find investors who could hold small stakes along with Etihad.

The lenders are of the opinion that the ownership of Jet Airways can be divided between three entities, each holding 20 per cent, while Etihad could keep 24 per cent. If the lenders fail to find such investors in the next few days, the only option would be to take the airline to an NCLT-led insolvency process, a source in the know said.

Sources pegged the total investment required by Jet Airways to restart operations at Rs 5,950 crore. Etihad, in its offer, said it would be able to invest only Rs 1,700 crore and acquire only 24 per cent stake. “The total equity need has been assessed at Rs 5,950 crore, of which Rs 1,700 crore can come from Etihad.

“If another three investors can pick up 20 per cent each, a resolution can be possible. But I reiterate that the situation seems to be extremely difficult,” a senior bank executive said. SBI Caps has been told to reach out to prospective investors including companies which have submitted unsolicited bid, another source in a public sector bank pointed out.

“There are quite a few interested parties who have evinced interest to invest in the company. Etihad’s bid to acquire 24 per cent can form the basis for guidance and can be treated as some sort of a floor for other investors,” he said. However, the authenticity of the bids needs to be checked before taking a decision, sources close to the development said.


 “The situation looks to be extremely difficult with Etihad unwilling to relax its conditions.

Terry Gou must name his successor: iPhone maker Foxconn needs another CEO

Company News

Before Terry Gou received a divine message to run for Taiwan’s presidency, the Foxconn founder said that he had stayed awake at night wondering what he could do for today’s youth.

That’s an admirable sentiment, but doesn’t much help his own shareholders when they need him most. The company’s major client, accounting for half of sales, is facing the biggest challenge in more than a decade. The tech sector overall is wrestling with a slowdown. And a trade war between China and the US puts Foxconn directly in the crossfire.

Flagship Hon Hai Precision Industry Co. reported earnings late Tuesday. The maker of Apple Inc. iPhones posted operating income that didn’t even match the lowest of analyst estimates, dropping 35% from a year earlier. That’s the biggest miss for a March quarter since Hon Hai started reporting consolidated numbers 11 years ago.

The results were bad across the board. Gross margin was the lowest in seven years, and operating margin fell near historic lows. Judging by the stock’s drop Wednesday morning, investors didn’t see this coming any more than analysts.

Gou loves to talk. He is happy to chat about his trip to the White House and meeting President Donald Trump. He loves to ponder what Taiwan needs from a president. He is keen to share his twin passions of charity and cancer research. But what he doesn’t like to discuss are the inner workings of his own $34 billion business.


 In situations like this, a CEO should be on a conference call explaining the situation to investors. Executives would do the rounds of financial media to calm shareholders. Yet Gou isn’t doing that. Hon Hai’s investor relations team offers the scantest of information in a single earnings table sent from a Gmail account.

Business class at budget price: How Indigo plans to lure Europe-Asia fliers

Company News

Low-cost airlines, the pioneers of brief discomfort at bargain prices, have struggled to master long-haul flights. Now one of the world’s most successful budget carriers is considering cut-price business class seats as a way into the Europe-Asia market.

India’s IndiGo, which currently flies as far as Istanbul, is mapping out an ambitious long-distance network. The airline aims to start one-stop trips further into Europe within six months, Chief Executive Officer Ronojoy Dutta said in an interview in New Delhi last week.

IndiGo has captured almost half the Indian market in just over a decade by offering cheap, punctual flights -- and charging extra for almost anything else. Dutta’s long-haul plans are forcing a product overhaul to help passengers endure longer flights and he’s considering everything from extra snacks to a brand-new business class.

“Once you get to six, seven, eight hours, the body gets tired, people need to use the washrooms more, people need to eat more frequently, all of those things change,” Dutta said. “We have to redesign our product. Is it more pitch, is it more food, is it more hot towels, is it a business class?”

Patchy legacy

Success could upend a long-haul market between Asia and Europe that’s long been the preserve of full-service carriers from Singapore Airlines Ltd. and British Airways to Emirates Airline and Cathay Pacific Airways. While IndiGo has become Asia’s largest low-cost carrier by market value, other no-frills rivals that have tried to go long-haul have left a hit-and-miss legacy.


 Discount carrier Norwegian Air Shuttle ASA, which launched services on intercontinental routes, has been weighed down by losses after a rapid expansion.

Flipkart is back with 'Big Shopping Days' sale, here are the best deals

Company News

India's largest e-commerce firm Flipkart is back with its 'Big Shopping Days' sale. The five-day mega-sale from 15 to 19 May has brought a number of offers and discounts from various brands on appliances, smartphones, television, laptops, speakers, headphones and other products.
The Walmart-owned online marketplace offered early access to Flipkart Plus members at 8 pm on Tuesday and for others, the sale went live at midnight.

Flipkart has mentioned several deals and offers with price cuts and buying benefits on its official website. The e-commerce firm has partnered with HDFC Bank to offer 10 per cent instant discount on using the bank's debit and credit card and EMI transactions. The company is offering Xiaomi’s Mi TV at a discounted price alongside Asus Zenfone Max Pro M2, Nokia 6.1 Plus, iPhone XR, and more.

Here are some of the best deals on the first day of the sale:

Smartphones

Under the 'Mobiles' category, Flipkart has top offers on various smartphones with attractive deals and mobile protection.

Samsung Galaxy J6 (4GB|64GB) has got a massive price cut and will be sold at Rs 9,490. Redmi Note 7 (4GB|64GB) at Rs 11,999 and Oppo K1 (in-display Fingerprint Sensor) at Rs 14,490. Among smartphones under the ‘best price ever’ category are Nokia 6.1 Plus (16MP Selfie) at Rs 12,999 and Infinix Note 5 at Rs 8,999.

 Asus Zenfone Lite L1, which is at Rs 6,999 will be available at a discounted price of Rs 4,999 during the sale. The Lenovo A5 will be priced at Rs 5,499, down from Rs 6,999. The ZenFone Max Pro M2 will be sold at Rs 9,999 than previous of Rs 15,999. Honor 8X will be available at Rs 14,999 as compared to its original Rs 19,999.