Evonik to Acquire Monarch Catalyst of India

Evonik Industries   to strengthen its global catalysts business, has signed an agreement with Monarch Catalyst Pvt. Ltd., India to acquire 100% of the company’s shares. The transaction is expected to close during the first half year of 2015 subjected to  regulatory approvals.

Evonik with its Business Line Catalysts is a global leader in producing specialty catalysts, custom catalysts and catalysts components for the Life Sciences & Fine Chemicals, Industrial & Petrochemical and Polyolefines market segments. This bolt-on acquisition in India with annual sales in the low double-digit million € range complements Evonik’s leading positions in activated base metal catalysts and precious metal catalysts. Monarch’s global oils & fats hydrogenation catalysts business is a broadening of the Evonik catalysts portfolio. Monarch Catalyst has about 300 employees.

Indian Budget Highlights ( FY 2015-16)

PERSONAL INCOME TAX

•    No revision of income tax brackets.
•  Limit of deduction of health insurance premium increased to INR 25,000 from 15,000; limit increased to  INR 30,000 from 20,000 for the elderly People.
•  People aged above 80 and not covered by health insurance to be allowed deduction of  INR 30,000  for medical expenses.
•  Additional deduction of  INR 25,000 for the disabled.
•  Limit on deduction for contributions to pension fund and new pension scheme increased to 150,000  from 100,000.
•  Additional deduction of 50,000 rupees for contribution to new pension scheme under section 80CCD.
•  Monthly transport allowance exemption doubled to 1,600.

FISCAL DEFICIT

• Fiscal deficit seen at 3.9 percent of GDP in 2015/16.
• Remain committed to meeting medium term fiscal deficit target of 3 percent of  GDP. ( By FY 2017-18).
  

GROWTH

• GDP growth seen at between 8 - 8.5 % y/y.
• Expects consumer inflation to remain close to 5% by March.

REVENUES

• Revenue deficit seen at 2.8 percent of GDP.
• Non tax revenue seen at 2.21 trillion rupees.

MARKET REFORMS

• Propose to merge  FMC  with SEBI.
• Bankruptcy code to be brought by FY 2015-16.
• Public Debt Management Agency (PDMA) bringing both external and domestic borrowings under one roof to be set up this year.
• Proposes to introduce a public contract resolution of disputes bill.

POLICY REFORMS

•  To enact a comprehensive new law on black money.
•  Propose to create a social security system for  all Indians.
•  To raise visa-on-arrival facility to 150 countries from 43.
  

GENERAL ANTI-AVOIDANCE RULES (GAAR).

• Government defers rollout of anti-tax avoidance rules GAAR by two years.
• GAAR to apply prospectively from April 1, 2017.
• Retrospective tax provisions will be avoided.

TAXATION

• To abolish wealth tax.
• Replaces wealth tax with additional 2 pct surcharge on super rich.
• Proposes to cut Corporate tax  to 25 % over next four  years from 30%.
• Net gain from tax proposals seen at 150.68 billion rupees.
• Expects to implement goods and services tax by April 2016.
• To reduce custom duty on 22 items.
• Basic custom duty on commercial vehicle doubled to 20%.
• Proposes to increase service tax rate and education cess to 14% from 12.36 %.

IMPORT TAX

• Import tax on iron and steel increased to 15 %from 10 %.
• Import tax on metallurgical coke increased to 5 % from 2.5 %.

INFRASTRUCTURE

• Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year
• Plans to set up national investment infrastructure fund ( NIIF).
• Ports in public sector will be encouraged to corporatize under Companies Act.
• Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects.
• 5 New  "ultra mega" power projects for 4,000 MW each to be set up.
  

EXPENDITURE

•  Plan expenditure estimated at about 4.65 trillion rupees.
• Non-plan expenditure seen at about 13.12 trillion rupees.
• Allocates 2.46 trillion rupees for Defence.
• Allocates 331.5 billion rupees for health sector.

SUBSIDIES

• Food subsidy seen at 1.24 trillion rupees
• Fertiliser subsidy seen at 729.69 billion rupees
• Fuel subsidy seen at 300 billion rupees
• Major subsidies estimated at 2.27 trillion rupees.