Overstaying our welcome

Rs 43,000 crore

What is it? The value of the Sahara Group’s flagship project, Aamby Valley, in Lonavala, Maharashtra, estimated by the official liquidator appointed by the Bombay High Court for an imminent auction.

Why is it important? The updated value, in recent reports, is a little higher than the range of Rs 37,00039,000 crore previously stipulated. However, it is still much less than the value claimed by the group of late: Rs 1 lakh-crore. The market value is expected to be higher than the estimate.

Tell me more: The group has said there would be no auctions, as it had paid the Rs 1,500-crore cheque it scheduled for June. However, its failure to deposit Rs 5,092.64 crore with the market regulator, Sebi, had led the Supreme Court to order its auction in April. The apex court had attached the property in February to recover the dues, whose main claimant Sebi is now joined by the Income Tax department as well.

 

19

What is it? The number of people killed in an explosion in a concert arena, being suspected as a terror attack, in Manchester, UK.

Why is it important? If it is confirmed as an attack by terrorists, this would be the second deadliest in the UK after London’s July-2005train and bus bombings. The 2005 attack had claimed the lives of over 50 people.

Tell me more: The explosion occurred at the end of a concert, as the audience was exiting the building, injuring over 50 people as well.

 

18,000

What is it? Estimated stock of General Motors (GM) vehicles with various dealers in India.

Why is it important? Dealers are unlikely to get any buyers for these vehicles, as the American automaker decided to exit India by December this year. GM’s dealers also warn of 15,000 job losses.

Tell me more: Suzuki Motor Corp, which sells every second car in India, had quit US market in 2012 because of low sales volume.

 

100%

What is it? The percentage of Foreign Direct Investment (FDI) that government is planning to allow in multi brand retail in India.

Why is it important? If permitted, this represents a change in the thinking of Bharatiya Janata Party, which has opposed such moves when the Congress-led United Progressive Alliance was in power. Domestic retail market is estimated at $ 630 billion market and employs around 5% of labour force.

Tell me more: At present, 51% FDI is allowed in multi brand retail in cities with population of more than a million, and with approval of state governments. Current proposal bans selling of imported products.

 

30,399

What is it? The number of Indians who have overstayed in US, beyond what was permitted under different visa categories.

Why is it important? Indians account for 4.8% of total number of people who have overstayed, estimated at 628,799 at the end of September 2016. Around 1.4 million Indians holding various visas (business, tourism, student, and others) were expected to leave US by September 2016.

Tell me more: 50.43 million people who entered US were expected to depart in 2016, and out of which, 1.47% overstayed. Overstay rate for Indians is 2.1%.

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GM drives away

1,211

What is it? The number of items of goods and services for which taxation rates have been fixed by the Goods and Services Tax (GST) Council – a forum for finance ministers from the states and the centre.

Why is it important? The agreement on taxation rates is a step forward to implementing the GST, which brings most taxes under a single tax, from July 1. The central government claims the rates would not fuel inflation, as overall incidence of taxation would be lower compared to current rates. Food items like cereals will not attract GST.

Tell me more: There are five rates of taxation (zero, 5%, 12%, 18% and 28%) and more than three-fifths of the goods and services will be taxed at 18% and 28%.

 

 

$1.4 billion

What is it? The amount of money raised by One97 Communications Ltd, the parent company of Paytm, from Japan-based SoftBank Group Corp.

Why is it important? The funding is the largest funding round by a single investor in India. The investment will help Paytm to build its payments bank, which will be launched later this month. Paytm plans to invest Rs 10,000 crore over the next three to five years, and acquire 500 million customers.

Tell me more: The latest investment values One97 at $7 billion, an increase of $1 billion in less than two months. In March this year, three existing investors sold 4.3% equity stake at a valuation of $6 billion.

 

 

17 million

What is it? The number of user records of Zomato, a food technology start-up, stolen by hackers and put up on sale online.

Why is it important? The breach reflects weak protection of consumer data by Zomato, which claims to have 120 million monthly user visits. Email addresses and hashed passwords (not the actual ones entered by users) were stolen by hackers. Zomato has reset passwords for all affected accounts.

Tell me more: Zomato has agreed to start a bug bounty programme, where people receive recognition and money for reporting bugs and security gaps, at Hackerone — a digital platform for bounty programmes.

 

 

20 years

What is it? General Motors will stop selling of cars in India by this year-end, after entering India almost 20 years back.

Why is it important? GM has 5,000 employees in India. In addition, there are 150 dealerships and 200 service centres. Each showroom and service service centre employs around 50 people. The resale value of Chevrolet cars is likely to decline sharply after this announcement.

Tell me more: The American company says it will continue the technical centre in Bengaluru and the Talegaon plant in Maharashtra, which will be used to export cars from India.

 

 

Rs 15.06 crore

What is it? The amount spent by the Akhilesh Yadav government in Uttar Pradesh in organising functions to distribute Rs 20.58 crore worth of unemployment assistance, between 2012 and 2013.

Why is it important? The amount has to be deposited directly into the beneficiaries accounts as per the rules of the scheme. The disproportionate expenses in organising the functions were revealed in an audit report by the Comptroller and Auditor General of India.

Tell me more: Unemployed people in the age group of 30-40 years with family income less than Rs 36,000 were eligible to receive Rs 1,000 per month under this scheme.

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PoS-itive additions 💳📊

1.4 billion

What is it? The amount e-commerce firm Flipkart raised from eBay, Microsoft and Tencent

Why is it important? It’s the biggest amount raised in a single funding round by an Indian start-up. It came at a pre-money valuation of $10.2 billion, signalling the confidence investors have showed in the company that saw a series of markdowns in the last couple of years. The funding – and acquisition of eBay India, that was a part of the deal – will strengthen Flipkart as it fights its aggressive and better endowed competitor Amazon.

Tell me more: There have also been talks that Snapdeal, the third largest commerce player in the country will be merged with Flipkart, along with additional funding from SoftBank.

 

21%

What is it? The share of the Europe, Middle East, India and Africa (EMEIA) region in the global IPOs (initial public offerings) in first three months of 2017.

Why is it important? India with 26 IPOs accounted for nearly 34% of the region’s activity that ranked it second to Asia-Pacific in IPO numbers. EMEIA ranked third with 15% share in global proceeds, behind Asia-Pacific and the Americas.

Tell me more: The EMEIA region had 77 IPOs, raising $5.2 billion in all in Jan-Mar, 2017.

 

>2.5 million

What is it? The number of point-of-sale (PoS) machines at merchant establishments/shops.

Why is it important? PoS machine availability in India trails that of BRIC nations such as Brazil and China where per capita PoS availability for swiping plastic money is higher. Demonetisation had brought the scarcity into focus as people had to do less cash transactions. The numbers inched from 1.5 million swipe machines in October, 2016, to 1.7 million in December, 2.2 million in February, 2017, to over 2.5 million now. SBI has led with installation of 124,000 machines.

Tell me more: The count, shared by a National Payments Corporation of India official, is a little less than Niti Aayog’s estimate of 2.8 million PoS machines in February.

 

17 days

What is it? The time the UK-to-China freight train would take to reach its destination in Zhejiang, travelling along the ancient ‘Silk Road’ route.

Why is it important? The time taken by the train between the two countries, spanning a route along seven other countries, is still half the duration at sea. It is also cheaper than sending goods by air. While the train had brought household items, clothes, and consumer fashion goods from China, it is transporting soft drinks, baby products and pharmaceuticals on the maiden return journey.

Tell me more: Chinese premier, Xi Jinping’s 2013 “One Belt, One Road” policy to revive land-routes for trading with the West, has made London the 15th European city with a direct rail connection.

 

$50.9 billion

What is it? Tesla’s market cap at the end of trading on Monday

Why is it important? It is now the most valued car company in the US, beating General Motors, the 108 year old giant, by 64 million dollars. Tesla’s position is seen more as a reflection of investors’ faith in Elon Musk’s vision for the future of electric cars, than the present financials of the companies. GM earned $9 billion in 2016, and Teslalost $674 million. GM sold nearly 10 million vehicles, and Tesla sold 80,000 globally.

Tell me more: Toyota, with its  $172 billion market cap, is the biggest carmaker by market value at present. Volkswagen, with a sale of 10.31 million vehicles in 2016, is the largest carmaker by sales volume, closely followed by Toyota.

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News in Numbers, Mar 07, 2017: Landing in a small town ✈

Rs 4,500 crore

What is it? The amount the government plans to spend on developing or upgrading 50 airports which were either underserved or unserved.

Why is it important? The government is going ahead with its plans to equip small regional airports/airstrips to ferry traffic, even as only 13 out of 125 airports under the Airports Authority of India’s (AAI) are profitable. Besides the funding for developing the new airports, the authorities will also spend further on incentivising flight operators with gap-funding. Fifteen more regional airports have to be upgraded besides the 50, according to AAI’s Regional Connectivity Scheme (named UDAN).

Tell me more: Fifteen airports will be refurbished in FY18 and FY19, and 20 more in FY20.

 

2 paise

What is it? The rate for one megabyte (MB) of data over WiFi at local public hotspots, as proposed by Trai, the telecom regulator.

Why is it important? This would help increase the demand and setting up of local public hotspots. With one-sixth of the world’s population, India’s share in WiFi hotspots is less than one-thousandth. By reducing the price of wireless Internet access from the existing 10 paise an MB in mobile telecom services, Trai is looking provide 800,000 additional hotspots to equal the global average of one hotspot for every 150 people.

Tell me more: Trai’s proposed local hotspots could be maintained by small entities, from small businesses, communities, individuals, to application providers. Local players’ involvement would also reduce the load on strained spectrum of established mobile operators.

 

$2.3 billion

What is it? The value of the sale of General Motors’ Opel/Vauxhall unit and its European financial arm to Peugeot-maker PSA Group.

Why is it important? It shows one of the largest car manufacturers in the world is changing lanes from a widespread but unprofitable presence to a less-global, but profitable one. A few years ago, the top three — Volkswagen, Toyota and GM — would eye the world-leader crown every year with units of cars sold. Selling its Europe unit would increase the gap between GM and the other two, but it would also free it of an arm that has incurred losses since 1999.

Tell me more: The Opel/Vauxhall brand contributed 11% of GM’s total revenue in 2016. After bankruptcy in 2009, GM’s home market in North America has done well.

 

Rs 259.8 per hour

What is it? The median gross hourly salary of women in India in 2016, according to the Monster Salary Index.

Why is it important? That is about 25% less than what men earned at Rs 345.8 per hour. While the gap has come down marginally compared to a year before, it highlights the ground that needs to be covered before India has fair and non-discriminatory workplace.

Tell me more: The gender gap is just one of the many indicators of gender inequality in the country. Infant mortality rate for female is higher, the expected years of schooling is lower, unemployment rates are higher, access to finance in terms of loans and deposits are lower.

 

$2.46 billion

What is it? Value of investments in Indian startups by private equity and venture capital firms in 2016, according to Grant Thornton.

Why is it important? This is down by about half from $4.97 billion in 2015, and indicates that investors are more cautious about the expectations of growth in the market. It also reflects the valuation markdowns that unicorns such as Flipkart faced in the recent months.

Tell me more: Overall investments by PE and VC investors dropped in 2016, with $14 billion invested across in 971 deals in 2016, from $16 billion invested in 1,045 deals a year before.

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