India-UK deals worth $13.5 billion explained

India-UK deals worth $13.5 billion explained

India’s Prime Minister Narendra Modi is in United Kingdom for a state visit. He travels with a contingent of business personalities who announce deals. According to the joint statement issued, deals worth $13.5 billion were announced.

Here are some important ones explained:

Telecom:

Vodafone has officially announced its investment plans of Rs 13,000 crore (£1.3 billion) in India. Such investments will open doors to 6,000 job opportunities. The company is spending money to upgrade the national network, set up high-end technology centres in Pune and Ahmedabad. A new data centre and create a payment bank. Bharti Airtel plans to issue sterling bonds of up to $750 million to be listed on the London Stock Exchange.

Financial services:

Housing Development Finance Corporation (HDFC) has also proposed to issue Rupee denominated bonds overseas up to $750 million under the Reserve Bank of India guidelines. HDFC also intends to list the initial issue of bonds for trading on the London Stock Exchange.

Indiabulls Housing Finance Limited has invested £66 million into OakNorth Bank Limited. Indiabulls will hold a 40% stake in OakNorth. This investment will also allow OakNorth will likely increase lending to UK growth SMEs to over $0.76 billion. This will create around 150 new jobs in Britain.

State Bank of India (SBI) will soon be opening two new branches in Hounslow and Ilford. SBI and London Stock Exchange Group have announced a collaboration to create the “FTSE-SBI India Bonds Indices”. To be launched in the first half of 2016, it will facilitate investment into India’s bondmarkets and support market liquidity and pricing.

Yes Bank will sign a memorandum of understanding (MoU) and focus on Green Infrastructure Finance. It also plans to raise further capital in London potentially through the listing of Global Depository Receipt (GDR) as part of its overall $1billion of equity capital raising plans. Additionally, Yes Bank plans to list a Green Bond of up to $500 million on the London Stock Exchange by December 2016.

Healthcare:

A bilateral India/UK initiative which will involve the government representatives will boost the proposal of eleven UK-Indo Institutes for Health. King’s College Hospital NHS Foundation Trust and Indo-U K Healthcare Pvt Ltd will open King’s College Hospital, Chandigarh.Advantech also plans to invest $7.6 million and create 30 UK jobs delivering IT to ambulances in the UK.

Holland & Barrett International has tied up with Apollo Hospitals to open 1,000 Holland & Barrett outlets in India over the next five years. The first store will open in New Delhi in January 2016 with 115 outlets open at the end of the year.

Logistics

TVS is opening a £20 million advanced logistics facility in Barnsley. This will definitely create 100 new jobs. As part of Team LEIDOS, the company is integral to delivering £500 million worth of procurement savings to MoD over 13 years.

Energy

Lightsource Renewable Energy Holdings has also announced a $3.04 billion investment in India. They will design, install and manage around three gigawatts of solar power infrastructure in India over the next five years. This investment will create an expected 300 jobs and £42 million of revenue in the UK and benefit hundreds of families in India.

Skills development (Education):

HSBC has launched its new ‘Skills for Life’ initiative in India. This programme will focus on three major areas - employment and entrepreneurship-linked skills training for disadvantaged youth, upskilling of teachers and educators, and financial literacy and entrepreneurship development of women.

HSBC Skills for Life programme will also focus on nine other sectors - retail, transportation and logistics, beauty and wellness, tourism, hospitality and travel, IT and IT enabled services, electronic and IT hardware; healthcare, banking, financial services and insurance, and education.

Happy Investing

Source:Yahoofinance.com