The latest report from the World Gold Council says that gold demand from India was what supported global gold demand in the first quarter of 2017. Indian purchases of gold jewellery in the first quarter of 2017 accounted for a little over a fifth of world jewellery demand. That is completely out of proportion to India’s share of world gross domestic product (GDP), which is around 3% or so, in current US dollars. During Q1, 2017, India’s demand for gold jewellery was 92.3 tonnes, compared to 22.9 tonnes for the US. Investment demand for gold in the form of bars and coins was 31.2 tonnes in Q1 2017, compared to 16.2 tonnes for the US. India’s hunger for gold is not surprising—people have been complaining about the “drain of gold” into India for ages, starting with Pliny the Elder, the Roman writer of the 1st century AD. But where in India does the gold go to? And who are the people who buy all this gold jewellery? Read more here.
Snapdeal receives Rs113 crore from Nexus, founders in surprise funding
Struggling online marketplace Snapdeal has received Rs113 crore in an emergency financing round from existing investor Nexus Venture Partners and the company’s founders. The funding will not affect Snapdeal’s proposed sale to Flipkart, three people familiar with the matter said, on condition of anonymity. Snapdeal (Jasper Infotech Ltd) has been in talks to sell itself to bigger rival Flipkart amid a boardroom battle involving its three most powerful investors and its co-founders Kunal Bahl and Rohit Bansal. Read original article here.
W, Aurelia brands owner TCNS Clothing may file for IPO this year
TCNS Clothing Co. Pvt. Ltd, which sells women’s apparel under the W, Aurelia and Wishful brands, has started discussions on an initial public offering (IPO), two people aware of the development said. New Delhi-based TCNS Clothing is backed by US-based private equity firm TA Associates. “TCNS Clothing has started meeting investment banks to discuss an IPO. They plan to file for the IPO by the end of the year,” said one of the persons cited above, requesting anonymity as the talks are private. “However, talks with the banks are at a very early stage right now. The company is yet to decide on the stake that it would look to dilute in the offering, and whether it would be a pure primary offering or a mix of primary and secondary share sale,” this person said. Read original article here.
ChrysCapital close to buying Mufti denims brand for Rs460-500 crore
Private equity firm ChrysCapital Advisors LLP is in advanced talks to buy Credo Brands Marketing Pvt. Ltd, which owns denim wear brand Mufti, two people aware of the development said. The deal is likely to be signed for Rs460-500 crore, the first person said on condition of anonymity. Mumbai-based Credo Brands, founded by Kamal Khushlani in 1998, makes T-shirts, shorts, sportswear and blazers. Khushlani holds a 65% stake in the company while private investors hold the rest. Read original article here.
To promote its flagship Make In India programme, the Narendra Modi government has cleared its own version of the US’s Buy American policy through a national government procurement policy, giving preference to locally made goods and services. Titled “Government procurement preference to Make In India order, 2017”, the new policy, cleared by the Union cabinet on Wednesday, is expected to give a substantial boost to local manufacturing and services sectors, thereby creating jobs. “It will also stimulate the flow of capital and technology into domestic manufacturing and services... (and) provide a further thrust towards manufacture of parts, components, sub-components etc. of these items, in line with the vision of ‘Make in India’,” a cabinet statement said. Read original article here.
Ikea to follow three-step retail strategy in India: CEO Juvencio Maeztu
Swedish furniture retailer Ikea will follow a three-step retail strategy in India, Ikea India Pvt. Ltd chief executive Juvencio Maeztu said. The first priority is to build the brand in India through large-format stores, said Maeztu, adding that this is important for companies that place a huge emphasis on the so-called touch-and-feel aspect of retailing. The next step will be e-commerce, but “always over the base of an Ikea store,” he added. Read original article here.
Modi government mulls allowing 100% FDI in retail, with caveats
To promote its flagship Make In India scheme with job creation at its core, the Narendra Modi government is considering allowing 100% foreign direct investment (FDI) in multi-brand retail—as long as the products are made in India. A government official familiar with the matter, who spoke on condition of anonymity, said the proposal is being considered. “A final decision on the matter will be taken after wider consultation,” he added. Read original article here.
Manyavar parent Vedant Fashions may sell 15% stake to L Catterton, Kedaara Capital
Private equity (PE) funds Kedaara Capital and L Catterton are in separate discussions to buy a minority stake in Vedant Fashions, the owner of ethnic wear brand Manyavar, according to two people aware of the development. The PE firms plan to acquire about 15% stake in Vedant Fashions for Rs450-500 crore, said one of the two people on condition of anonymity. Read original article here.
Paytm raises $1.4 billion from SoftBank, valuation soars to $7 billion
Paytm has raised $1.4 billion from SoftBank Group Corp. in the largest funding round by a single investor in India, making the digital payments firm the Japanese company’s biggest bet in India’s start-up ecosystem. The deal includes $400 million worth of shares that SoftBank will buy largely from Paytm’s early investor SAIF Partners in a secondary transaction, and a minor stake from founder Vijay Shekhar Sharma, according to two persons close to the development. Read original article here.
Snapdeal effect? Ola restricts SoftBank rights, strengthens those of founders
Cab-hailing firm Ola has made sweeping changes in its shareholder terms, strengthening the rights of its founders and restricting those of its largest investor SoftBank Group Corp. and others. It’s the first instance of start-up leaders shielding themselves against potentially hostile action by powerful shareholders after some of the country’s top entrepreneurs lost control of their companies this year. Read original article here.