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News digest: Flipkart-Walmart deal, Essar Steel, smart TV market, and more

The group may even explore relocating the entire Walmart India operation to Bengaluru in the near future

News digest
Business Standard
Last Updated : May 07 2018 | 2:55 AM IST
1. Walmart, Flipkart work on synergies; merger may result in common leadership

With just the formal signatures pending for a deal with Flipkart, Walmart has begun its search for real estate, mostly in Bengaluru, to have synergies with the e-commerce company headquartered there, sources said. 

The American retail major is looking at shifting some critical divisions such as information technology (IT) and e-commerce to Bengaluru from Walmart India’s Gurugram office. The group may even explore relocating the entire Walmart India operation to Bengaluru in the near future. “If Walmart is spending more than $12 billion on acquiring Flipkart, it only makes sense for them to relocate to Bengaluru,” a source said. Read more...

2. Essar Steel resolution case: ArcelorMittal, Numetal get 7 days to pay dues

The committee of creditors (CoC) in the Essar Steel resolution case met on Saturday and considered giving ArcelorMittal and Numetal seven days to clear outstanding dues to become eligible.

The CoC would, however, have to vote on the resolution to complete the process and notices to the companies would be issued thereafter, said sources close to the development. The voting could take place on Monday. 

If the resolution goes through, ArcelorMittal would have to make payments on account of Uttam Galva Steels and KSS Petron to become eligible. Read more...

3. E-bidding: Govt to explore English auction system for disinvestment

In a departure from physical bids, the Centre is working on an online portal for selling state-owned entities. The portal, which is being developed by state-owned Metal and Scrap Trading Corporation (MSTC), will redesign the process of privatisation. E-bidding will also change the sales process from sealed bidding to an English auction system, which is an open ascending system under which participants bid against one another, with each subsequent bid required to be higher.               

The auction ends when no participant is willing to bid further, and then the highest bidder is declared the winner. Read more...

4. Centre plans to make 2% CSR spending mandatory for Life Insurance Corp

The government is planning to bring state-owned insurer Life Insurance Corporation (LIC) under the ambit of corporate social responsibility (CSR). This would lead the insurance behemoth to spend at least 2 per cent of its surplus fund on social activities.

According to a senior government official, the Centre is of the view that LIC, the country’s largest insurer, should contribute a portion of the surplus fund on social welfare. At present, there is no obligation on the insurer to spend a fixed amount on such activities. The parliamentary committee, which met in Mumbai on April 25, reviewed the compliance of CSR rules by banks and other financial institutions including LIC, sources said. Read more...

5. India's smart TV market gets a price flick; TCL launching low-cost models

A silent revolution is on in India’s smart television market, which threatens to upend the pecking order in one of the largest domestic durables categories. Global majors such as Xiaomi, Thomson, and TCL have entered the domestic smart television market in the past two months with low-cost and feature-rich models.

This, in many ways, mirrors what happened in the domestic mobile phone market a few years ago, when affordable smartphones changed the market dynamics. Read more...

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