Malaysian tycoon's $7 billion wipeout turns his India dream into nightmare

Bloomberg
March 2, 2018

New Delhi, Mar 2: It was supposed to be the crowning achievement of Malaysian tycoon T Ananda Krishnan's five-decade career.

But his $7 billion bet on mobile carrier Aircel Ltd may instead go down as one of the biggest-ever flops by a foreign investor in India, a stark reminder that doing business in the world's fastest-growing major economy is often a lot tougher than it looks.

Krishnan's holding company stands to lose all the money it poured into Aircel over the past 12 years, people with knowledge of the matter said, after the carrier filed to start bankruptcy proceedings this week. Buffeted by intense competition and regulatory uncertainty, Aircel is the latest in a long list of casualties in an Indian telecom market that only a few years ago was luring foreign entrants in droves.

While international companies have fared much better in India's buoyant consumer products and financial services industries, the turmoil in telecom is unlikely to help Prime Minister Narendra Modi's campaign to lure more foreign capital. In January, his government eased restrictions on foreign direct investment in several sectors, including single brand retail, real estate brokerages and power exchanges.

"India has always been a difficult market, even as it offers the prospects of great demographics and a billion-plus population," Sampath Reddy, chief investment officer at Pune-based Bajaj Allianz Life Insurance Co, said by phone. "The Aircel episode definitely has lessons in the offing for anyone who starts a business in the country."

Krishnan, 79, spent about $800 million to purchase Aircel in 2006, when less than 10 percent of India's 1.1 billion people owned a mobile phone and the scope for growth looked nearly limitless.

By that time, the Harvard Business School graduate had already established himself as one of Malaysia's most powerful billionaires, with controlling stakes in the country's biggest mobile-phone and pay-television operators and close ties to former Prime Minister Mahathir Mohamad.

India Allure

Faced with lackluster growth at home, Krishnan saw India's booming market as key to his empire's future. And he was willing to invest big to make Aircel a success.

Over the years, Maxis Communications Bhd, the holding company in which Krishnan owns a 45 percent stake, made about $3.4 billion of shareholder advances to Aircel, one of the people with knowledge of the matter said. Maxis Communications also bought $1.2 billion of common stock and subscribed to $1.6 billion of redeemable preference shares, the person said.

While he had deep pockets, Krishnan failed to anticipate how cutthroat India's telecom market would become. With nearly a dozen players jockeying for market share, call rates in the country plunged to some of the lowest levels worldwide. Competition has only intensified since 2016, when Reliance Jio Infocomm Ltd., owned by India's richest man, stormed into the market and offered free calls.

Aircel made a last-ditch effort to gain scale by attempting a merger with Reliance Communications Ltd. A setback came in January 2017, when India's highest court barred Aircel from selling or leasing its airwaves amid a broader graft lawsuit. The deal eventually collapsed in October last year.

The company summed up its dire situation in a Twitter post on Wednesday announcing the bankruptcy filing, saying Aircel had been "facing troubled times in a highly financially stressed industry, owing to intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses."

A representative for Maxis Communications declined to comment.

After Aircel, Krishnan is likely to spend more time focusing on his other businesses, which include Malaysian carrier Maxis Bhd. and pay-TV operator Astro Malaysia Holdings Bhd., the person with knowledge of the matter said. Both companies are still profitable, though their stock prices have dropped by an average 10 percent over the past year, versus a 9.6 percent gain in Malaysia’s benchmark equity index, according to data compiled by Bloomberg.

That doesn’t mean Krishnan is giving up on India entirely. He still controls a stake in South Asia FM Ltd., a radio broadcaster, and TV service provider Sun Direct. The businesses are performing well, and Krishnan currently has no plans to sell, the person said.

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News Network
January 12,2020

Ahmedabad, Jan 12: Union Home Minister Amit Shah on Saturday unveiled over 5.5 lakh postcards written by Ahmedabad residents to Prime Minister Narendra Modi, thanking him for the Citizenship (Amendment) Act.

The postcards were stacked on the dais as Shah addressed a gathering of BJP workers who formed letters `C A A’ in front of him.

The state BJP claimed that the party’s “largest awareness campaign” in support of the CAA had found a place in Limca Book of Records and World Record of India.

“It is not just words but a letter of thanks written from the heart. Our public outreach programme is a reply to the lies being spread against the CAA,” Shah said addressing BJP workers from his former Assembly constituency Naranpura.

The BJP had promised to enact the CAA in its manifesto, he said, asking why the Congress did not oppose it then.

Targeting Rajasthan Chief Minister Ashok Gehlot, Shah said, “Congress has a government in Rajasthan. The Congress party in that state had promised that Hindus and Sikhs from Pakistan would be given citizenship.

“Why do you oppose it when we fulfill the promise made by you?” the Union home minister asked.

“In 2006 and 2009, Ashok Gehlot wrote a letter for the same. We covered Hindus, Sikhs, Parsis, Christians, all of them under the Act, you had only mentioned Hindus and Sikhs,” Shah claimed.

Saying that Prime Minister Narendra Modi, by bringing in the CAA, granted “human rights to lakhs of people”, he asked why opposition was against it.

He challenged “Rahul Baba” (Congress leader Rahul Gandhi), Mamata Banerjee and Arvind Kejriwal to show if any provision of the CAA took away the citizenship of Indian Muslims.

“There is no such provision. Lakhs and crores of people have come to India from Pakistan, Bangladesh to save their religion, their self-respect, to save themselves. Where else will they go?” he asked.

“From the first prime minister of the country Jawaharlal Nehru to the first home minister, first president of the country, and Mahatma Gandhi himself had said that whoever comes to India from Pakistan will be granted citizenship. Hindus, Sikhs, Buddhists and Jains coming from Pakistan have nowhere else to go,” he said.

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sompady
 - 
Sunday, 12 Jan 2020

From this figure its clear that most of BJP mebers are aganst CAA, Becuase its below 0.5% from Indian population.

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News Network
February 13,2020

New Delhi, Feb 13: Tibetan spiritual leader the Dalai Lama has congratulated AAP supremo Arvind Kejriwal for his party's stupendous victory in the Delhi Assembly polls, saying the people of the national capital will continue to benefit from his leadership.

Responding to the Dalai Lama's statement, Kejriwal in a tweet on Wednesday said, "Am humbled by the kind words and blessings from His Holiness The Dalai Lama. Thank you very much @DalaiLama."

Referring to the Happiness Curriculum for government schools in Delhi, the Dalai Lama said he has a deep admiration for the efforts the AAP government has made towards "shaping better, happier human beings with improved values".

"These measures will have a positive impact on children's overall education, as well as helping the poor to fulfil their dreams of improving their lives," he said.

He also lauded the AAP government's initiative to incorporate aspects of inner mental development into the school curriculum.

"Through such initiatives, you are showing a path to the rest of India," the Dalai Lama added.

In a near-repeat performance of 2015, the Aam Aadmi Party on Tuesday retained power with a stunning victory, winning 62 of the 70 assembly seats and leaving the BJP with just eight seats.

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News Network
February 12,2020

Saint Martin's Island, Feb 12: At least 15 women and children drowned and more than 50 others were missing after a boat overloaded with Rohingya refugees sank off southern Bangladesh as it tried to reach Malaysia Tuesday, officials said.

Some 138 people -- mainly women and children -- were packed on a trawler barely 13 metres (40 feet) long, trying to cross the Bay of Bengal, a coast guard spokesman told news agency.

"It sank because of overloading. The boat was meant to carry maximum 50 people. The boat was also loaded with some cargo," another coast guard spokesman, Hamidul Islam, added.

Nearly one million Rohingya live in squalid camps near Bangladesh's border with Myanmar, many fleeing the neighbouring country after a 2017 brutal military crackdown.

With few opportunities for jobs and education in the camps, thousands have tried to reach other countries like Malaysia and Thailand by attempting the hazardous 2,000-kilometre journey.

In the latest incident, 71 people have been rescued including 46 women. Among the dead, 11 were women and the rest children.

Anwara Begum said two of her sons, aged six and seven, drowned in the tragedy.

"We were four of us in the boat... Another child (son, aged 10) is very sick," the 40-year-old told news agency.

Fishermen tipped off the coast guard after they saw survivors swimming and crying for help in the sea.

The boat's keel hit undersea coral in shallow water off Saint Martin's Island, Bangladesh's southernmost territory, before it sank, survivors said.

"We swam in the sea before boats came and rescued us," said survivor Mohammad Hossain, 20.

Coast guard commander Sohel Rana said three survivors, including a Bangladeshi, were detained over human trafficking allegations.

An estimated 25,000 Rohingya left Bangladesh and Myanmar on boats in 2015 trying to get to Thailand, Malaysia and Indonesia. Hundreds drowned when overloaded boats sank.

Begum said her family paid a Bangladeshi trafficker $450 per head to be taken to Malaysia.

"We're first taken to a hill where we stayed for five days. Then they used three small trawlers to take us to a large trawler, which sank," she said.

Shakirul Islam, a migration expert whose group works with Rohingya to raise awareness against trafficking, said desperation in the camps was making refugees want to leave.

"It was a tragedy waiting to happen," he said.

"They just want to get out, and fall victim to traffickers who are very active in the camps."

Islam said in the past two months dozens of Rohingya reported approaches from traffickers to his OKUP migration rights group.

"Human smuggling and trafficking in the Bay of Bengal is particularly difficult to address as it requires concerted effort from multiple states," the Bangladesh head of UN agency the International Organization for Migration, Giorgi Gigauri, told news agency.

"The gaps in coordination are easily exploited by criminal networks."

Since last year, Bangladeshi authorities have picked up over 500 Rohingya from rickety fishing trawlers or coastal villages as they waited to board boats.

Trafficking often increases during the November-March period when the sea is safest for the small trawlers used by traffickers.

Bangladesh and Myanmar signed a repatriation deal to send back some Rohingya to their homeland, but none have agreed to return because of safety fears.

The charity Save the Children called on Myanmar to "take all necessary steps to ensure the Rohingya community can return to their homes in a safe and dignified manner".

"The tragic drowning of women and children... should be a wake-up call for us all," the group's Athena Rayburn said in a statement.

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