- Friday, February 28, 2025
By: Shubham Ghosh
Here are news in brief related to Indian economy and business for Friday, June 9, 2023:
India’s Enforcement Directorate (ED) has taken action against Chinese mobile manufacturer Xiaomi by issuing showcause notices to its top officials, including CFO Sameer Rao and former MD Manu Jain, along with three banks, Moneycontrol reported. The notices are related to an alleged foreign exchange violation amounting to Rs 5,551.27 crore (£535.3 million). The ED’s action is based on a complaint filed by the agency regarding illegal remittances made by Xiaomi Technology India Private Limited. Sources have confirmed that the showcause notices were served to Xiaomi Technology India Private Limited, the two executives, as well as CITI Bank, HSBC Bank, and Deutsche Bank AG. Previously, the ED had seized funds worth Rs 5,551.27 crore from the bank accounts of Xiaomi Technology India Private Limited, citing unauthorized remittance of this amount disguised as royalty payments abroad.
BYJU’S, a leading Indian edtech company, is reportedly planning to lay off an additional 1,000 employees, following the previous layoff of 5,000 employees just six months ago. The move is part of BYJU’S cost-cutting efforts and aims to streamline operations, particularly within the marketing department. While the exact number of affected employees is yet to be confirmed, reports suggest that 1,000 individuals will be laid off. The company has instructed managers at its 280 tuition centers to terminate two employees each from the marketing and sales teams, and approximately 150 marketing managers are expected to be asked to leave. Employees who are laid off will be offered a severance package equivalent to two months’ salary. These measures come as BYJU’S faces financial challenges, including defaulting on a $1.2 billion (£954 million) loan and taking legal action against investment firm Redwood.
India’s chief economic advisor V Anantha Nageswaran expressed his opposition to Universal Social Security, stating that it would create perverse incentives and discourage individuals from seeking income-generating opportunities, PTI reported. He argued that India, as a developing country, should prioritise economic growth to fulfill the aspirations of its people rather than implementing Universal Social Security. Nageswaran suggested that support should be limited to those who are unable to participate in economic activities, bringing them to a point where they can meaningfully engage in the economy. He also discussed the importance of maintaining fiscal sustainability and achieving a lower fiscal deficit through steady nominal GDP growth. Nageswaran emphasized the need for India to improve its credit rating to stimulate fiscal health, which would lead to lower interest rates and more money in the hands of citizens.
SpiceJet, the Indian low-cost carrier, announced on Friday that it will be adding 10 Boeing 737 aircraft to its fleet between September and October, Reuters reported. This move is aimed at meeting the increasing passenger traffic in the country. The fleet expansion will include five Boeing 737 Max aircraft, although the exact list price was not disclosed by the Gurugram-based airline. As of June 2023, SpiceJet’s fleet consisted of 91 aircraft, but it is unclear whether this figure includes the 25 planes that were grounded. To revive the grounded fleet, SpiceJet has recently partnered with FTAI Aviation for the lease of 20 engines. The airline expects the grounded planes to resume services soon.
The India D2C Summit & Awards 2023, presented by DHL and powered by GreenHonchos, commenced its second edition with a keynote address by Mohit Rana from Redseer, emphasising India’s digital progress and its leading position in technology adoption, NewsVoir said. The D2C landscape is witnessing significant growth, with 9,000 brands operating and a projected revenue of USD 25 billion. The event featured sessions by industry experts, covering various topics such as the future of FMCG brands in digital-first India, the power of social media influencers in driving D2C businesses, and creating exceptional customer experiences. The release of the book ‘D2C Evolve’ showcased the struggles and success stories of notable D2C brands. The event culminated in the IMAGES India D2C Awards 2023, recognizing exceptional achievements in the industry.
Aether Industries, a specialty and fine chemical manufacturer, announced on Friday that it has entered into a license agreement with Saudi Aramco Technologies Company for the commercialisation of the sustainable converge polyols technology, PTI reported. The converge polyols technology is a cutting-edge method for producing more sustainable polyols that contain up to 40 percent carbon dioxide by weight. Aether Industries expressed its delight at being chosen to commercialize this technology after years of collaborative development with Saudi Aramco. Aman Desai, the promoter and director of Aether Industries, stated that these novel polyols have promising applications in the field of CASE (coatings, adhesives, sealants, and elastomers) and hold significant potential for commercialization and revenue generation.
(With agency inputs)
