WCA September 2020

India Insight

Jobs and infrastructure get government boost A total of 59.8 million days of work have been created across 25 schemes from the Indian government. Most of the work through the Garib Kalyan Rojgar Yojna, the jobs-for-migrants scheme, is an optic fibre cable-laying programme. The new cable laying comes at a time when many daily activities have moved online, even in rural India, in the wake of the coronavirus pandemic. Polycab results Polycab India reported a healthy performance for the first quarter of 2020, with net profit increasing by over 50 per cent compared to the same period in 2019. Revenue grew 11 per cent, year on year, and the wire and cables business grew nine per cent, driven by new products and exports. Commenting on the results, Polycab India’s chairman and MD, Inder T Jaisinghani, said: “We achieved healthy underlying performance with improved profitability. … Polycab maintained its dominant position in wires and cables and continues to expand its presence in the electricals ecosystem. “The year was marked with strong business momentum despite significant headwinds, however the outbreak of COVID-19 and its severe economic implications partly tapered growth. “Our financial stability, in-house backward integration, wide distribution channels and quality human capital position us well to deal with any challenge. … Government reforms and initiatives will certainly help the broader economy and people, [and] Polycab, being a true example of Made in India, will continue to contribute to [the] nation’s growth and government’s vision to make India a self-reliant economy.” Polycab India www.polycab.com Operator changes hands IndiGrid, an infrastructure investment trust for power transmission lines, has made a share purchase agreement with Kalpataru Power Transmission and Techno Electric and Engineering Company for the power transmission line operator Jhajjar KT Transco Pvt Ltd. The deal will increase IndiGrid’s 14-state portfolio to ten power transmission projects with a total network of 23 power transmission lines of over 6,000 circuit kilometres. “This acquisition is in line with our strategy to acquire

accretive operational assets with long term and stable cash flows, thereby growing returns for unit holders,” said Harsh Shah, chief executive officer of IndiGrid. IndiGrid www.indigrid.co.in Name change and new arrivals PolyOne has completed its acquisition of the colour masterbatch businesses of Clariant and the Clariant Chemicals India affiliate. PolyOne has also announced its change of name to Avient. “We proudly welcome our newest associates and valued customers from Clariant Masterbatch. They are joining us on day one of this new era for our company, which, as of today, will be named Avient,” said Robert M Patterson, chairman, president and chief executive officer, Avient. The agreement to acquire the Clariant Masterbatch business was originally announced in December 2019. The business includes 46 manufacturing operations and technology centres in 29 countries and approximately 3,500 employees, who will join Avient’s colour, additives and inks segment. “With this acquisition, Avient now expects over 85 per cent of adjusted EBITDA to be generated from speciality applications,” said Mr Patterson. “This is up from less than ten per cent, when our speciality journey began over a decade ago.” PolyOne Corporation www.polyone.com Investigation underway The Indian government has begun an anti-subsidy investigation into imports of aluminium wire and wire rods from Malaysia. The applicants for the investigation, Vedanta Ltd and Bharat Aluminium Company Ltd, have alleged that some Malaysian producers and exporters of the goods have benefitted from actionable subsidies provided by local and national govern- ment, causing material injury to India’s domestic industry. “Consultation was held on June 29, 2020, ... the government of Malaysia denied existence and applicability of certain programmes and non-availment of some of the programme by producers/exporters of the product under consideration,” the Directorate General of Trade Remedies (DGTR) said. The statement continued that if it is established that subsidies by Malaysia are impacting domestic industry, the directorate will recommend the amount of countervailing duty that, if levied, would be adequate to remove the injury to the domestic industry.

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