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On Slack: India’s Coffee King – VGS, RBLs sixer, Suzlon from ‘D’ to ‘BBB-‘, EM Fire Sales and Patanjali-Future Group marriage and more….


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The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

A brief summary of some of the interesting things discussed there in the last few days:

#general: India’s Coffee King – VG Siddhartha wants to grow Cafe Coffee Day into one of the top café chains in the world

Indias Coffee King

From selling plain vanilla coffee beans and bags for years and years, VG Siddhartha ventured into the café business some 20 years ago. As India’s consumption story blossomed, Siddhartha’s Café Coffee Day became a popular meeting place for professionals and a cool hangout for teenagers. From nothing, Café Coffee Day today has 1,500 cafés across the country serving 200,000 cups of coffee every hour. That translates into ₹1,400 crore in revenues for his diversified group, which is into financial services, software and logistics.

IPO Food chain

#general: Is Foodpanda looking to sell Indian arm?


Online food ordering company Foodpanda Group may be looking to sell its Indian arm as the Rocket Internet-backed firm revisits its strategy in the country amid intense competition in the food-tech sector, according to two people familiar with the development. The Germany-based company has reached out to at least three of its peers in India, said the two people who did not wish to be quoted.

“The talks started sometime in August and are in very early stages,” said one of the two people mentioned above. Both spoke on condition of anonymity.

#general: PFS launches lending scheme for infra projects

PTC India Financial Services Limited (PFS) introduced credit enhancement scheme to step up lending to “quality” infrastructure projects. “PTC India Financial Services Limited (PFS) announced introduction of its Credit Enhancement Scheme as part of its efforts to step up lending to quality infrastructure projects in the country,” it said in a release.

#stocks: RBL scoops up Rs 500 crore, value balloons to 75% of Bank of India

ratnakar bank

RBL has been valued at nearly three-fourths the market cap of public sector biggie Bank of India in a pre-IPO round led by Asian Development Bank (ADB) and existing investor and private equity firm CDC. The Kolhapur-headquartered bank, which turned to Bank of America’s former India chief Vishwavir Ahuja to breathe new life into its operations in 2010, has raised Rs 500 crore from CDC, ADB, family offices and long-only funds such as DVI Fund (Mauritius) Ltd and Rimco (Mauritius) Ltd, valuing the ..

#general: Jubilant Life Gets US Regulator’s Nod for Pain Drug

Jubilant Life Sciences said in a filing to the BSE that it “received Abbreviated New Drug Application (ANDA) final approval from the US Food and Drug Administration (USFDA) for Indomethacin ER Capsule 75mg, which is a non-steroidal anti-inflammatory drug used for treatment of pain.”

#general: UAE money rates hit multi-year highs as oil money dries up

Money market rates in the United Arab Emirates hit their highest levels in roughly two years on Tuesday as low oil prices slashed state oil revenues, leaving banks with less money to lend.

The economies of the rich Gulf Arab oil exporters have so far coped well with the plunge of crude prices since last year. Heavy government spending and strong activity in sectors other than energy have kept economies growing solidly.

#general: Mutual funds see Rs 77,000 crore outflow in September

Mutual funds

Investors pulled out over Rs 77,000 crore from mutual fund schemes in September, making it the highest outflow in six months, with liquid and money markets contributing the most to the outflow. This comes on top of net outflow of about Rs 46,750 crore from mutual fund products in August. According to data from the Association of Mutual Funds in India (Amfi), investors withdrew a net Rs 77,142 crore in MF schemes last month

#general: Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.


#stocks: HC restrains Glenmark from manufacturing, selling anti-diabetes drugs Zita and Zita-Met

In a relief for US drug major Merck Sharp and Dohme (MSD), the Delhi High Court today restrained Glenmark Pharmaceuticals from manufacturing and selling its anti-diabetes drugs Zita and Zita-Met, saying it has infringed the patent of the American company.

“Injunction allowed,” Justice A K Pathak said and added that MSD shall be entitled to actual cost of the proceedings.

#general: Swish Tea Cafes Chasing Riches Reinvent Poor Man’s Chai in India

“If at all any company becomes the Starbucks of India one day, it will be a chai company,” said Saluja, 32, who started his chain in 2012 after quitting a management consultancy job in the U.S. “The reason why Starbucks became so huge in the U.S. is that they started serving a beverage that was already popular in America, but in a better way. We are trying to sell something that is inherent in India’s culture. That is the opportunity we are tapping into.”

#general: Hillary Clinton to Propose High-Frequency Trading Tax, Volcker Rule Changes

Hillary Clinton will propose a tax aimed at penalizing “harmful” high-frequency trading strategies and offer ways to strengthen the Volcker Rule, as she unveils another set of proposals Thursdayaimed at what she has termed risky Wall Street behavior.

The Democratic presidential front-runner plans to call for a tax targeting trading strategies that rely heavily on order cancellations, a Clinton aide said Wednesday, previewing her announcements on the condition of anonymity

HIlary CLintin

#stocks: Suzlon Energy gets investment grade rating after five years

Credit Analysis and Research Ltd or Care Ratings has assigned an investment grade to the Tulsi Tanti-controlled firm’s outstanding bank facilities and to the proposed commercial paper issue.

In 2012, Suzlon Energy’s loan facilities was assigned ‘D’ or default rating by agencies, signalling potential default.

On Thursday, Suzlon Energy said Care Ratings has assigned a ‘CARE BBB-’ credit rating for the company’s long-term bank facilities and fund-based working capital limits worth Rs.4,936 crore.


#general: IMF: Emerging-Market Troubles Risk Triggering Asset Fire Sales

Financial turmoil in emerging markets risks hitting global economic growth and triggering asset fire sales world-wide, especially if the U.S. Federal Reserve raises interest rates prematurely, the International Monetary Fund said Wednesday.

“The U.S. should wait to raise policy rates until there are further signs of inflation rising steadily, with continued strength in the labor market,” José Viñals, the IMF’s top financial counselor, said in remarks prepared for the launch of the IMF’s latest report on the world’s financial system.


#stocks: Patanjali enters big retail with Future Group tie-up

Baba Ramdev’s Patanjali has tied up with Future Group to sell its products through its outlets.

“We are looking at business worth Rs 1,000 crore with Patanjali in 20 months,” Future Group’s Kishore Biyani told ET Now. Announcing the tie-up, Ramdev said: “We were looking for a swadeshi retail chain to sell our products and Future Group’s Big Bazaar fitted the bill

#general: Key Financial Events for October, 2015

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Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

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