The Indian Railways has achieved a robust 36% year-on-year growth in capital expenditure to Rs. 32,000 cr. during April-July 2017, entrenching its status of the last couple of years as a key driver of public capex. The transporter’s Q1FY18 capex jump comes on top of a 19% annual growth in its capital investments in 2016-17 and 59% in 2015-16. The railways has planned a capital expenditure of Rs.1,31,000 cr. for the financial year 2017-18, of which Rs.69,000 cr. needs to be raised through budgetary resources and Rs.62,000 cr. through extra budgetary means. The Centre’s overall budgetary capex for April-June increased 39% y-o-y to Rs.68,328 cr., of which nearly 50% was defence-related. Roads, agriculture, urban development, and housing, apart from railways, were the beneficiaries due to front-loading of expenditure.
Mahindra and Mahindra will exit from its China joint venture for tractor business, Mahindra Yueda Yancheng Tractor Company, by selling entire stake for RMB 82 million (nearly Rs.80 cr.). The Indian conglomerate has plans to independently operate in China. Mahindra and Mahindra holds 51 per cent stake in the Chinese JV through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Limited.
Future Consumer will form a 50:50 joint venture with Bin Ablan Food Industry, a UAE-based bakery products maker for manufacturing and sell its range of premium bakery products as cupcakes, pound cakes, muffins etc. The board also approved an equal joint venture with EK Sons Agro Food, manufacture of wheat and other speciality foods in India and abroad under their flagship brand Dilkush. The Kishore Biyani-led group would sell wheat products, maida, Sooji, whole wheat atta and bran etc through the JV.
Dollar Industries announced a joint venture with Pepe Jeans Europe BV to manufacture and market premium range of innerwear. The tie up will help both the companies to offer an exciting and innovative range of aspirational products to the customers
TVS Motor Company has acquired a 24 per cent stake in RentOnGo, a Bengaluru-based start-up operated by Condivision Solutions and an online marketplace for renting bikes. The two-wheeler and three-wheeler maker invested Rs.1.5 cr. in Condivision Solutions.