Weekly media update 07 03_2022

670
(This document comprises news clips from various media in which Balmer Lawrie is mentioned, news
related to GOI and PSEs, and news from the verticals that we do business in. This will be uploaded on
intranet and website every Monday.)
Q3 GDP growth slower than expected,
rises 5.4%
India’s economy grew by a slower-than-expected
5. 4% in the December quarter, pushing down the
fullyear estimate for FY22 to 8. 9% from 9. 2%
previously, data released by the government on
Monday showed. An ET poll of economists had last
week forecast a median 6% growth in gross
domestic product (GDP) in the third quarter of the
current fiscal year. Rating agency ICRA said the
estimate was “sorely below” its expectations of a
6. 2% rise in the quarter. Oxford Economics said,
“India’s GDP growth slowed to 5. 4% y/y in Q4
2021 from 8. 5% in Q3, confirming our view that
the recovery lost momentum in the last quarter of
the year. “The third-quarter growth number and
prospects of an even weaker fourth quarter have
triggered further downgrades in full-year
estimates by independent economists. ICRA
lowered its estimate to 8. 5% from 8. 5-8. 9%.
Barclays cut its full-year growth forecast to 8. 8%
from 10%. Economists called for monetary and
fiscal support to the economy that now faces
downside risks from the spiralling geopolitical
situation that has spiked crude and commodity
prices.
The Economic Times - 01.03.2022
https://epaper.timesgroup.com/article-
share?article=01_03_2022_001_011_etkc_ET
Sales of manufacturing cos grow
27.3% in Q3: RBI data
Aggregate sales of 1,701 listed manufacturing
companies recorded a growth of 27.3 per cent
in the third quarter of 2021-22 on an annual
basis, aided by high sales growth in petroleum,
non-ferrous metals, iron and steel, chemicals
and textiles industries, according to RBI data
released on Monday. RBI released the data on
the performance of the private corporate sector
during the third quarter of 2021-22 drawn from
abridged quarterly financial results of 2,744
listed Non-Government Non-Financial (NGNF)
companies. "Sales of listed private non-financial
companies increased (y-o-y) by 25.3 per cent
in the third quarter of 2021-22 as compared
with 31.8 per cent in the previous quarter and
4 per cent in the corresponding quarter a year
ago," the RBI said. As per the data, aggregate
sales of 1,701 listed manufacturing companies
recorded steady growth (y-o-y) of 27.3 per
cent, aided by high sales growth in petroleum,
non-ferrous metals, iron and steel, chemicals
and textiles industries.
Millennium Post - 01.03.2022
http://www.millenniumpost.in/business/sales-
of-manufacturing-cos-grow-273-in-q3-rbi-
data-469794
Factory activity grows in Feb on better
demand
India’s manufacturing sector activity bounced
back in February buoyed by an accelerated pace
of new orders supported by favourable demand
conditions and higher production, a private survey
showed Wednesday. The IHS Markit India
Manufacturing Purchasing Managers’ Index (PMI)
rose to 54. 9 in February from 54 in January. A
reading above 50 on the index shows expansion
and below that indicates contraction. The February
PMI data pointed to an improvement in overall
operating conditions for the eighth straight month.
“Growth has now been seen in each of the latest
eight months, with the headline figure remaining
above its long-run average of 53. 6,” IHS Markit
said in a report. Shreeya Patel, economist at IHS
Markit said the Indian manufacturing sector had
Services activity up in February as
curbs are lifted, PMI at 51.8
India's services activity improved slightly in
February as Covid-19 cases declined and
restrictions were lifted, and an uptick in
business confidence was seen though firms
continued to shed jobs, a private survey showed
on Friday. The seasonally adjusted India
Services Business Activity Index rose to 51. 8
from 51. 5 in January. A reading above 50 in
the index shows expansion and below that
indicates contraction. “Growth in the service
sector failed to rebound as meaningfully as
many would have hoped given that Covid-19
cases receded considerably from January's new
wave and restrictions were lifted,” said
Pollyanna De Lima, economics associate
director at IHS Markit. While several firms
WEEKLY MEDIA UPDATE
Issue 543
07 March, 2022
Monday

“weathered the storm” of the Omicron-variant-led
third wave. As per the report, rates of expansion
picked up at intermediate and capital goods firms
but eased for consumer goods makers. Demand
from international clients rose at the quickest pace
in three months but employment decreased in
February.
suggested that marketing efforts, demand
resilience and new client wins boosted sales,
there were signs that growth was hampered by
input shortages, the pandemic and local
elections. As per the survey report,
international demand for Indian services
remained subdued in February, as indicated by
a further decline in new business from abroad.
Exports rise 22% to $33.8b in Feb
India's exports rose by 22. 36% to $33. 81 billion
in February on account of healthy growth in
sectors like engineering, petroleum and chemicals,
even as the trade deficit widened to USD 21. 19
billion, according to preliminary data released by
the commerce ministry on Wednesday. Imports
during the month too jumped by about 35 per cent
to USD 55 billion. The trade deficit, the difference
between imports and exports, stood at USD 13. 12
billion in February 2021. “India's merchandise
export in April 2021-February 2022 was USD 374.
05 billion, an increase of 45. 80 per cent over USD
256. 55 billion in April 2020-February 2021,” it
said. Imports during the 11 month period rose by
59. 21 per cent to USD 550. 12 billion. Trade
deficit during this period widened to USD 176. 07
billion as against USD 88. 99 billion during April -
February 2020-21.
EPFO goes long on top PSU bonds
The Employees’ Provident Fund Organisation
(EPFO) is estimated to have invested at least Rs
10,000 crore in top-rated public-sector
company bonds, including Indian Oil Corp,
Hindustan Petroleum and National Bank for
Agriculture and Rural Development (NABARD),
some of which have offered rates up to 9 basis
points less than similar maturity government
bonds, three people with the knowledge of the
matter told ET. A short supply of dated
sovereign securities coupled with lower
issuances of corporate bonds by government
backed entities may have forced the country’s
largest institutional debt investor to take these
unusual bets with three and five-year
maturities, sources said. Those deals were
sealed in about two weeks towards end of
February. State-owned oil refiner HPCL raised
five-year money offering 6. 09%, which is about
9 basis points lower than similar maturity
sovereign bonds maturing in 2027.
To put it crudely, we need to brace for
inflation
The Russia-Ukraine conflict has thrown the global
oil market into turmoil, threatening an extended
period of price volatility as crippling sanctions on
Russia, the world’s largest oil exporter, raise the
prospect of a realignment in global energy routes.
Benchmark Brent crude, accounting for 50% of the
global oil trade, has rocketed to $117/barrel, the
highest since February 2013, in a week since the
conflict began. Spot prices of natural gas have
followed suit. The ‘Indian Basket’, or the mix of
crude bought by Indian refiners, too has spiked to
$111. 99/barrel, the highest since September
2012 as Brent makes up 25% of the basket. India
cannot escape the ripples since it imports 85% of
its oil and 50% of gas requirements. The key areas
of concern are: impact on fuel prices and economic
growth, and Indian investments in Russia.
However, there is no fear of supply disruption as
More Ind Directors Board India Inc
despite rise in financial frauds
Corporate frauds that snowball into
controversies, putting the company boards
under the spotlight, have become more and
more common. But while it might seem like
being an independent director on a company
board would be an unattractive proposition,
with the danger of reputational damage, or
coming under the watch of regulatory bodies,
the reality on the ground is starkly different.
Boards are no longer struggling to appoint
independent directors. Many independent
directors are willing to join even if they are
aware that the company has been engaged in
fraud. The corporate spectrum has seen a jump
in appointments of independent directors even
as cases of financial statement fraud, bribery,
corruption or technology-related fraud are
emerging as Covid has made companies

Russian crude was only 2% of India’s total oil
purchase in the current fiscal. This can be
replaced, especially if a breakthrough in US-Iran
nuclear talks allows Iranian crude to flow. Refiners
source Russian oil from traders and not directly
from Russia.
The Times of India - 06.03.2022
share?article=06_03_2022_024_005_toikc_TOI
increasingly rely on technology. According to
data provided by Prime Infobase, more
independent directors have joined boards in
2021 at 1,150 compared to 1,018 in 2020. The
data also shows fewer vacant seats and
resignations of independent directors.
Resignations fell to 778 from 995 earlier and
vacancies dropped from 309 seats 242 in 2021
for the same period.
India to miss its revised disinvestment
target this year amid Russia-Ukraine
crisis
India will miss its revised disinvestment target for
the second time in the past eight years by a wide
margin, as the government may not be able to
raise an expected over Rs 60,000 crore from the
IPO of insurance behemoth LIC in 2021-22. Since
the Modi government came to power in 2014, it
was only in the financial year 2019-20 that it failed
to achieve the revised CPSE disinvestment target
of Rs 65,000 crore. The mop-up during the year
was only Rs 50,304 crore. In the ongoing financial
year 2021-22, the government was all set to go
ahead with the share sale of Life Insurance
Corporation (LIC) this month and draft papers for
the same were also filed with markets regulator
Sebi. However, the Russia-Ukraine war has
severely impacted the stock markets forcing the
government to rethink about the timing of the IPO.
If the IPO fails to hit the market by March 31, the
government will stare at a huge shortfall in the
disinvestment mop-up. So far, the government
has collected Rs 12,400 crore and was banking on
LIC IPO to achieve the revised target of Rs 78,000
crore.
The Financial Express - 06.03.2022
https://www.financialexpress.com/economy/disin
vestment-proceeds-to-fall-short-of-revised-
estimates-for-second-time-since-2014/2452168/
IEA bid to ease oil price shock
Member countries of the International Energy
Agency (IEA), including India, late on Tuesday
agreed to release 60 million barrels of oil from
their emergency stockpiles as a message to the
global oil markets that there will be no shortfall
in supplies as a result of the conflict between
Ukraine and Russia. The decision was taken at
a ministerial level extraordinary meeting of the
31-member governing board chaired by US
energy secretary Jennifer Granholm in her
capacity as chair of this year’s IEA ministerial
meeting. IEA members hold emergency
reserves of 1. 5 billion barrels. The 60 million
barrels amounts to 4% of those stock-piles. This
is equivalent to two million barrels a day for 30
days against a daily global supply of
approximately 100 million barrels before the
pandemic. The coordinated drawdown is the
fourth in the history of the IEA, which was
created in 1974. Previous collective actions
were taken in 2011, 2005 and 1991. India has
a daily consumption of 4. 5 million barrels per
day of crude and has a stockpile of 39 million
barrels, or 8-9 days’ supply, across three
locations.
share?article=02_03_2022_016_014_toikc_TO
I
India to raise fuel prices from next week
amid concern over inflation
India will raise petrol and diesel prices next week
for the first time in more than four months as
global crude prices soar after Russia's invasion of
Ukraine last week, three government officials said,
amid growing concern about inflation. Asia's third-
largest economy, which imports 80% of its oil
needs, faces retail inflation staying above the
central bank's tolerance limit of 6% as companies
pass on a nearly 40% rise in crude prices since
November, as well as rises in prices for other
imported raw materials, economists said. State-
run oil companies, which control the domestic
Rs 12 hike in petrol and diesel price is
needed to break even
Petrol and diesel prices, which have been on a
freeze for the past four months in view of
assembly elections in states like Uttar Pradesh,
need to be increased by over Rs 12 per litre by
March 16 for fuel retailers to break even.
International crude oil prices shot above USD
120 a barrel for the first time in nine years on
Thursday before retreating a little to USD 111
on Friday, but the gulf between cost and retail
rates has only widened. With international oil
prices - on which domestic fuel retails are
directly benchmarked - spiking in the last two

market, have not raised prices since November 4,
aiming to help the BJP in crucial state assembly
elections including in the most populous state of
Uttar Pradesh. "The oil companies would be free
to raise prices in a phased manner once the
election is over on March 7," a senior government
official with the knowledge of internal discussions
on oil prices told Reuters.
https://energy.economictimes.indiatimes.com/ne
ws/oil-and-gas/india-to-raise-fuel-prices-from-
next-week-amid-concern-over-
inflation/90005024
months, state-owned fuel retailers "need a
massive price hike of Rs 12.1 per litre on or
before March 16, 2022, just to breakeven and a
price hike of Rs 15.1 is required" after including
margins for oil firms, ICICI Securities said in a
report. The basket of crude oil India buys rose
to USD 117.39 per barrel on March 3, the
highest since 2012, according to information
from the Petroleum Planning and Analysis Cell
(PPAC) of the oil ministry.
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/a-rs-12-hike-in-petrol-and-
diesel-price-is-needed-to-break-
even/89992028
Fuel prices poised to flare up as oil hits
8-year high of $113
Global benchmark Brent crude spurted to
$113/barrel on Wednesday, unimpressed by a US-
led initiative for a co-ordinated release of 60
million barrels from emergency stockpiles of 31
International Energy Agency member-countries,
as sanctions force consumers to shun Russian oil.
Brent, accounting for 50% of globally traded oil,
was last seen at this level in July 2014. India’s
crude cost also shot up $2 since February 24 to
$102/barrel as Brent makes up 25% of the barrels
bought by domestic refiners, making a fuel price
shock inevitable after the last phase of polling in
UP ends on March 7. India’s crude cost was
$83/barrel on November 4, when the Centre cut
excise duty by Rs 10 on diesel and Rs 5 on petrol
to give relief ahead of polls in five states. Pump
prices have remained unchanged since then under
an informal government diktat. The political
expediency of keeping fuel prices under check will
end with the polls. With the dollar also
appreciating to Rs 75. 71, the gap between the
cost and retail prices of petrol and diesel is too
wide for the freeze to continue, without hurting
bottomlines of retailers.
Steel prices jump up to ₹5,000 per
tonne amid Russia-Ukraine conflict:
Report
Domestic steel makers have hiked the prices of
hot-rolled coil (HRC) and TMT bars by up to
₹5,000 per tonne as supply chain is being
impacted amid ongoing Russia-Ukraine conflict,
news agency PTI reported. After Russia invaded
Ukraine, supply disruptions have hit global
prices of wheat, soybean, fertiliser and metals
like copper, steel and aluminium - raising
worries about prices and economic recovery.
According to the PTI report, the prices have
been increased in the past few days and are
expected to go up further in the coming weeks
with the crisis deepening between the two
countries. After the price revision, a tonne of
HRC will cost around ₹66,000, while the buyers
will get TMT bars for about ₹65,000 per tonne,
the report noted. Meanwhile, Nifty Metal index
has surged about 12% in the last five trading
sessions as compared to a 2% fall in Nifty 50.
Domestic brokerage house Motilal Oswal
believes that sanctions on Russia will impact the
prices of aluminium, nickel, steel, thermal coal,
and PCI coal positively.
Mint - 04.03.2022
https://www.livemint.com/market/commoditie
s/steel-prices-jump-up-to-rs-5-000-per-tonne-
amid-russia-ukraine-conflict-
11646389859290.html
Int’l airfares up as Ukraine crisis sends
oil price soaring
Airfares to international destinations have soared
along with the rise in oil prices following the
Russia-Ukraine crisis, but on the domestic routes,
the recent hike in airfares can be attributed to an
increase in bookings, said travel industry officials
on Friday. In January, during the third Covid wave,
domestic airfares crashed with a drop in demand.
Currently, airfares are capped up to 15 days, so
Mahindra Logistics acquires last-mile
delivery firm ZipZap for Rs 72 crore
Mahindra Logistics, a third-party logistics
solutions provider said it has acquired a
majority stake in ZipZap Logistics, a last-mile
logistics service provider that operates under its
brand ‘Whizzard.’ Mahindra will acquire 60 per
cent in the Hyderabad-based firm for Rs 71.73
crore through primary and secondary purchases
in two phases. It would also buy out the

airlines offered dirt cheap tickets for travel two
weeks out. That is, if you look up domestic fares
today, you will find comparatively cheaper fares
on dates 15 days out, from March 20 onwards. Till
recently a Mumbai-Delhi return ticket booked 15
days or more in advance cost Rs 5,500, but now it
costs Rs 10,500. Similarly, the cheapest 15-day
advance purchase return fare on the Mumbai-
Kochi flights was priced around Rs 4,300; it costs
over Rs 15,000 now. Fares on travel within 15
days are much higher. “Some of the international
carriers were fast enough to increase their airfares
due to the fuel price increase during this week and
the same is expected to rise further, in an event
the fuel prices go up more.
reminder of the stake at a later stage and make
it a fully-owned subsidiary. MLL will complete
the acquisition before November 30 2023. The
acquisition will help MLL make deeper inroads
into smaller towns and cities where Whizzard
has a strong presence. It will help the company
tap into the multiple formats for last-mile
delivery like quick commerce that are coming
up in a big way, Rampraveen Swaminathan, MD
and CEO Mahindra Logistics. “The last mile is
very important for us from a growth
perspective. Overall, from the industry
perspective, Last-mile accounts for only 15 per
cent of the kilometres but contributes 40 per
cent of the cost for a company.
Business Standard - 01.03.2022
https://www.business-
standard.com/article/companies/mahindra-
logistics-to-buy-majority-stake-in-zipzap-
logistics-whizzard-122022800792_1.html
Bhaskar Jyoti Phukan to be the next Managing Director of NRL
Public Enterprises Selection Board (PESB) on Friday 4 March 2022, recommended the name of Mr.
Bhaskar Jyoti Phukan for the post of Managing Director, Numaligarh Refinery Ltd. Currently, he is
serving as, Director (Technical) in the same company. PESB interviewed two other applicants apart
from him in the selection meeting. Mr. Gopal Chandra Sikder, Executive Director, Indian Oil Corporation
Ltd., and Mr. Vivek Jaiswal, General Manager, Bharat Sanchar Nigam Limited (BSNL) were also
interviewed in the meeting. Moreover, Mr. Jyoti Phukan can assume the charge of the post, after the
Appointments Committee of Cabinet (ACC) nod.
PSU Connect - 05.03.2022
https://www.psuconnect.in/news/pesb-recommends-next-managing-director-of-nrl/31583

Weekly media update 07 03_2022

More Related Content

What's hot

Similar to Weekly media update 07 03_2022

More from BalmerLawrie

Recently uploaded

Weekly media update 07 03_2022