Trackpad
IOCL forms JV with Total SA to Provide Bitumen Derivatives
Indian Oil Corporation Limited (IOCL) has formed a 50:50 joint venture (JV) company with French multinational integrated oil & gas company- Total SA, to manufacture and market high-quality bitumen derivatives and speciality products for the growing road infrastructure industry in India. The manufacturing and marketing of innovative bitumen formulations and superior quality products such as polymer-modified bitumen, crumb rubber-modified bitumen, bitumen emulsions, and other speciality products would be carried out by utilising both the companies’ R&D as well as marketing strengths. Bitumen is a black viscous mixture of hydrocarbons obtained naturally or as a residue from petroleum distillation which is used for road surfacing and roofing.
IOCL’s management informed that the JV company would cater to B2B customers involved in road infrastructure development both in the government and private sectors. In the first four years, six new greenfield plants would be set up at Panipat (Haryana), Koyali (Gujarat), Haldia (West Bengal), Barauni (Bihar), Visakhapatnam (Andhra Pradesh) and Chennai (Tamil Nadu) for which, Rs226 crore would be invested. The JV has plans to set up manufacturing units across India with cost-effective logistics solutions along with keeping innovation by maintaining the safety and sustainability of its operations. It will also be catering to the South Asian markets.
The demand for aggregate material and manufactured material for the highway construction and rehabilitation sector in India is very high as the Indian government has been initiating huge projects like Bharatmala, which envisages the development of 34,800 km of roads at an estimated investment of over Rs5 lakh crore in the first phase.
BEML bags order worth Rs557 crore from Defence Ministry
BEML Limited announced that it signed a contract with the acquisition wing of Ministry of Defence (MoD) for the procurement of 1,512 mine plough (MP) for tank T-90 S/SK at an approximate cost of Rs557 crore. The contract has ‘Buy and Make Indian’ categorisation with a minimum of 50 per cent indigenous content in the make portion of the contract. These mine ploughs will be fitted on T-90 tanks of Indian Armoured Corps, which will facilitate individual mobility to tanks while negotiating a minefield. The mobility of the tank fleet will enhance manifold, which in turn, would extend the reach of armoured formation deep into enemy territory without becoming mine causality.
With the induction of these 1,512 mine ploughs, which is scheduled to be completed by 2027, the combat capability of the army will be further enhanced. These mine ploughs will be fitted on T-90 tanks of Indian Armoured Corps that will facilitate individual mobility to tanks while negotiating minefields. BEML, a leading mining and construction equipment manufacturer, has designed and developed indigenously over 40 products through its R&D; not only in India but also in 65 countries around the world.
Tata Communications obtain local telecom license in Saudi Arabia
Tata Communications secured Type B licence in Kingdom of Saudi Arabia (KSA). Type B licence would enable Tata Communications to provide internet service provider (ISP) and other related telecom services to enterprises as well as end-customers in KSA. It would also help the company in shifting from offering services as a foreign carrier in Middle East to a local licenced service provider. Through this licence, Tata Communications will now become a carrier-neutral service provider to the OTTs, large enterprises and MNCs in the region. It will thus be able to offer network transformation services in KSA and address internet, network security, and private cloud along with software-defined wide-area network (SDWAN) requirements across the region. The continuously changing business regulations of KSA make the region an epicentre for the businesses globally to invest in the region. The latest development of securing the licence will enable the company to further expand its reach in Middle East by leveraging its global expertise and capabilities to cater to the customer requirements. Tata Communications Limited is a telecommunications services company providing international telephone, telex and telegraphy services, international maritime mobile communications, Intelsat business service and bureau fax and t-fax services. In addition, it also provides internet access; electronic mail and electronic data interchange services. The company owns and operates the world’s only wholly-owned subsea network that encircles the globe, reaching more than 200 countries and territories.
Hero MotoCorp increases stake to 34.58 per cent in Ather Energy
The country’s leading two-wheeler manufacturer, Hero MotoCorp announced that it has invested Rs84 crore (US$ 11 million) into Ather Energy, an Indian electric vehicle (EV) company, thus taking its shareholding in the company up to 34.58 per cent. Hero MotoCorp has been a part of Ather’s growth story since 2016 when it had first invested as a part of Series B funding. Prior to this investment, the shareholding of Hero MotoCorp in Ather Energy stood at 31.27 per cent. Bangalore-based electric smart scooter maker, Ather Energy, is now entering an aggressive expansion phase, under which, it aims to scale to 20 cities by the end of 2021.
To meet projected demand in the coming years, the company is opening a new manufacturing facility in Hosur (Tamil Nadu), which is designed to produce 1,00,000 units annually, scalable to half-a-million units. Furthermore, it has also set up Ather Grid fast charging points across the country to make public charging easy and accessible to all EV owners. The investment by Hero MotoCorp will aid the company in these expansion plans. Commenting on the investment, Rajat Bhargava, Head of emerging mobility business unit (EMBU), global business & strategy at Hero MotoCorp stated that the company sees immense potential for Ather Energy to expand its market even further.
Info Edge invests US$ 6.33 million in Bulbulive Shopping Network
Info Edge (India), one of the most active investors among early-stage tech start-ups in the country, is investing around US$ 6.33 million in Bulbulive Shopping Network Private Limited, a video and live stream-led commerce platform. The IE Venture Fund of the company agreed to invest US$ 6.33 million in equity through a mix of primary and secondary modes of acquisition, thus taking the total shareholding in the commerce platform to 17.82 per cent on fully converted and diluted basis. The company has informed about the investment part of a larger round of about US$ 8.7 million with existing investors contributing the balance amount. Incorporated in July 2019, Bulbulive Shopping Network aims to make online shopping engaging and social while offering consumers the opportunity to discover new products. The company features influencers who explain the product features and interact with customers to clarify their queries helping them decide during a live broadcast.
Info Edge accelerated its investment cycle in the Indian start-ups' ecosystem when it launched its maiden venture capital fund- Info Edge Venture Fund (IEVF) earlier this year. The fund has already invested in more than 50 start-ups across the B2B and B2C segments.
ITC acquires Sunrise Foods for Rs2,150 crore
ITC acquired spices maker Sunrise Foods Private Limited (SWPL) in an all-cash deal valued at Rs2,150 crore. The shares of SFPL have been acquired at an 'upfront consideration of Rs2,150 crore on a cash-free, debt-free basis', the company stated in a filing to the exchanges. As a result of the transaction, Sunrise and its two subsidiaries, Sunrise Sheetgrah Private Ltd and Hobbits International Foods Pvt Ltd, have become wholly-owned subsidiaries of ITC, it further added.
SFPL is a Kolkata-based family-owned company, engaged primarily in the business of spices and is a market leader in eastern India in the fast-growing spices category. ITC’s Aashirvaad range of spices is already a market leader in Telangana and Andhra Pradesh and the acquisition will further augment ITC’s product portfolio and expand its footprint across the country. It is expected that the acquisition will create significant value creation opportunities through synergies arising out of the sourcing and supply chain capabilities.
The acquisition further aligns with ITC’s strategy of scaling up its fast-moving consumer goods (FMCG) businesses in a profitable manner thereby, leveraging its institutional strengths of deep consumer insight, a deep and wide distribution network, agricommodity sourcing expertise, cuisine knowledge, strong rural linkages as well as packaging know-how.