NEW DELHI: The government will provide cooking gas connections to 7 million rural households, incurring an additional subsidy of Rs 2,700 crore a year to supply villages with the fuel that is predominantly sold in urban areas .
The government will also waive the upfront payment of Rs 1,400 for each customer and minimise paperwork to help villagers switch from firewood and kerosene to liquefied petroleum gas (LPG), two oil ministry official said.
The cabinet had rejected a similar proposal from the oil ministry about three months ago as some ministers were concerned about the subsidy and others demanded a simplified connections.
"The new proposal is made simple so that the poor in villages can get connections without any hassle," an official with direct knowledge of the matter said. The ministry has set a two-year target to connect seven million rural households.
The oil ministry has re-worked the scheme and the same is expected to be placed before the Cabinet for its approval by the end of this month, the official said requesting anonymity.
The oil ministry has argued that fear of subsidy should not deprive rural population from using the clean fuel. Officials said that total LPG subsidy in the current fiscal year is estimated to be Rs 32,000 crore, while the new scheme that would cheer rural people would increase it by only 8.4%.
"Today almost entire urban population is using subsidised LPG (liquefied petroleum gas). Why rural people should not get the same benefit?," a central minister, who did not want to be identified, said. The government must devise ways to exclude rich availing the highly subsidised fuel and it must extend the facility to the poor, the minister said. Fuel subsidy on kerosene, cooking gas and diesel is estimated at Rs 72,800 crore for 2010-11 .
"Local dealers are obliged to give gas connections to villagers by verifying their residence and other details," the official said. State-run oil companies and the ministry will monitor the scheme and any malpractice by dealers would cost them the dealership, the official added.
The government has proposed to provide the new connection along with first cylinder of cooking gas in rural areas at a total cost of just Rs 635 per unit.
The subsidy will be shared between the government and state-run oil companies, which can leverage their funds for corporate social responsibility (CSR). Public sector oil companies, including Indian Oil, Bharat Petroleum and Hindustan Petroleum, mandatorily spend 2% of their net profit on CSR activities. Their combined annual CSR kitty is estimated between Rs 800 and Rs 1,000 crore.
The government proposes to waive off the one-time security deposit of Rs 1,250 for the connection and Rs 150 for the regulator. The beneficiary will pay about Rs 635 per unit for other services, including the cost of a 14.2 kg gas cylinder, which costs approximately Rs 350.
The oil ministry has set a target to provide 10 million (1 crore) new gas connections, mostly in villages, every year till 2015. As per the ministry data, state-run oil companies have so far provided 8.5 million connections this year.
Penetration of clean cooking fuel like piped natural gas (PNG) and liquefied petroleum gas (LPG) will also help the government in proportionately reducing supply of highly subsidised kerosene, which is often misused for adulterating costly fuel such as diesel, an official in the ministry said.
Success in my Habit
Saturday, January 15, 2011
Tata Motors global sales up 21 pc in Dec; JLR flat
NEW DELHI: Tata Motors today said its global sales increased by 21 per cent in December 2010 to 90,294 units on robust demand for commercial vehicles but sales of luxury brands from Jaguar Land Rover remained flat.
Jaguar Land Rover sales were at 21,353 units during December, up just one per cent from the same month in the previous year, Tata Motors said in a statement.
While sales of luxury sedans of Jaguar brand was down by 10 per cent last month at 4,332 units, Land Rover sales was up by 4 per cent at 17,021 units, it added.
Commercial vehicles sales were higher by 29 per cent to 48,168 units from the same month a year ago, it said.
Total passenger vehicle sales stood at 42,126 units in December 2010, up 13 per cent from the corresponding month of the previous year, the company said.
The Tata Motors Group global sales comprises Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with the distributed brands in India--Jaguar and Land Rover.
During the April-December period, total global vehicle sales rose 29 per cent at 7,68,834 units.
While total passenger vehicle sales increased by 30 per cent at 4,06,157 units, commercial vehicle sales jumped 29 per cent at 3,62,677 units in the first nine months of this fiscal.
Jaguar Land Rover sales were at 21,353 units during December, up just one per cent from the same month in the previous year, Tata Motors said in a statement.
While sales of luxury sedans of Jaguar brand was down by 10 per cent last month at 4,332 units, Land Rover sales was up by 4 per cent at 17,021 units, it added.
Commercial vehicles sales were higher by 29 per cent to 48,168 units from the same month a year ago, it said.
Total passenger vehicle sales stood at 42,126 units in December 2010, up 13 per cent from the corresponding month of the previous year, the company said.
The Tata Motors Group global sales comprises Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with the distributed brands in India--Jaguar and Land Rover.
During the April-December period, total global vehicle sales rose 29 per cent at 7,68,834 units.
While total passenger vehicle sales increased by 30 per cent at 4,06,157 units, commercial vehicle sales jumped 29 per cent at 3,62,677 units in the first nine months of this fiscal.
IndiGo orders 180 Airbus A320s worth $15.6 billion
Private low-cost domestic carrier IndiGo has placed a firm order for purchasing 180 single-aisle Airbus A320 passenger jetliners, making it the largest single order for such a large number of jets in commercial aviation history.
IndiGo has signed a memorandum of understanding (MoU) for 180 eco-efficient Airbus A320 aircraft of which 150 will be A320neo's and 30 will be A320s. It will also make IndiGo a launch customer for the A320neo. Engine selection will be announced by the airline at a later date.
At the prevailing catalogue price of Airbus Industrie, the order is estimated to be worth about $15.6 billion.
It is not for the first time that IndiGo has raised eyebrows by placing a huge order for commercial jetliners. In 2005 too, the private airline had created a flutter by ordering 100 Airbus A320 aircraft. It flies 34 Airbus A320s on 25 destinations on the domestic sector and plans to launch international flights by August.
The A320neo, available from 2016, incorporates new more efficient engines and large wing tip devices called Sharklets delivering significant fuel savings of up to 15 per cent.
“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares,'' IndiGo co-founders Rakesh Gangwal and Rahul Bhatia said. “Ordering more A320s is the natural choice to meet India's growing flying needs. The opportunity to reduce costs and to further improve our environmental performance through the A320neo is key to our decision,'' they said.
“The A320 Family is the recognised market leader. The A320neo, offering the maximum benefit for minimum change, will ensure that this continues to be the case for many years to come,'' Airbus Industrie Chief Operating Officer (Customers) John Leahy said.
Some 6,800 Airbus A320 Family aircraft have been ordered and some 4,500 delivered to more than 310 customers and operators worldwide, making it the world's best-selling single-aisle aircraft family. The A320neo will have over 95 per cent airframe commonality with the A320 Family whilst offering up to 950 km more range or two tonnes more payload.
IndiGo has signed a memorandum of understanding (MoU) for 180 eco-efficient Airbus A320 aircraft of which 150 will be A320neo's and 30 will be A320s. It will also make IndiGo a launch customer for the A320neo. Engine selection will be announced by the airline at a later date.
At the prevailing catalogue price of Airbus Industrie, the order is estimated to be worth about $15.6 billion.
It is not for the first time that IndiGo has raised eyebrows by placing a huge order for commercial jetliners. In 2005 too, the private airline had created a flutter by ordering 100 Airbus A320 aircraft. It flies 34 Airbus A320s on 25 destinations on the domestic sector and plans to launch international flights by August.
The A320neo, available from 2016, incorporates new more efficient engines and large wing tip devices called Sharklets delivering significant fuel savings of up to 15 per cent.
“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares,'' IndiGo co-founders Rakesh Gangwal and Rahul Bhatia said. “Ordering more A320s is the natural choice to meet India's growing flying needs. The opportunity to reduce costs and to further improve our environmental performance through the A320neo is key to our decision,'' they said.
“The A320 Family is the recognised market leader. The A320neo, offering the maximum benefit for minimum change, will ensure that this continues to be the case for many years to come,'' Airbus Industrie Chief Operating Officer (Customers) John Leahy said.
Some 6,800 Airbus A320 Family aircraft have been ordered and some 4,500 delivered to more than 310 customers and operators worldwide, making it the world's best-selling single-aisle aircraft family. The A320neo will have over 95 per cent airframe commonality with the A320 Family whilst offering up to 950 km more range or two tonnes more payload.
IL&FS to take over Maytas Properties
The Company Law Board (CLB) on Thursday allowed infrastructure finance company IL&FS to take over Maytas Properties, a company promoted by the family members of disgraced Satyam founder Ramalinga Raju.
IL&FS has been allowed to hold 80 per cent of the equity in Maytas Properties, Corporate Affairs Minister Salman Khurshid told reporters here on Thursday.
The new promoter will pump Rs 150 crore into the crisis-ridden company over the next 18 months, he said.
“I permit the induction of four nominees of IL&FS group as director on the board of Maytas Properties including the Chairman,” CLB chairman Justice D.R. Deshmukh said in the order.
He further said that existing director of Maytas Properties — Rama Raju, D. Gopal Krishnana Raju and D. Venkata Satya Raju — would resign immediately on induction of IL&FS group as the strategic investor in Maytas Properties.
According to the CLB order, IL&FS will be required to hold at least 40 per cent equity in the property company for next three years.
In order to allow IL&FS to take over the company, the paid up capital of Maytas Properties would be raised from Rs 5 lakh to Rs 25 lakh.
IL&FS had already taken over Maytas Infra, another company which was promoted by the kins of Raju.
IL&FS has been allowed to hold 80 per cent of the equity in Maytas Properties, Corporate Affairs Minister Salman Khurshid told reporters here on Thursday.
The new promoter will pump Rs 150 crore into the crisis-ridden company over the next 18 months, he said.
“I permit the induction of four nominees of IL&FS group as director on the board of Maytas Properties including the Chairman,” CLB chairman Justice D.R. Deshmukh said in the order.
He further said that existing director of Maytas Properties — Rama Raju, D. Gopal Krishnana Raju and D. Venkata Satya Raju — would resign immediately on induction of IL&FS group as the strategic investor in Maytas Properties.
According to the CLB order, IL&FS will be required to hold at least 40 per cent equity in the property company for next three years.
In order to allow IL&FS to take over the company, the paid up capital of Maytas Properties would be raised from Rs 5 lakh to Rs 25 lakh.
IL&FS had already taken over Maytas Infra, another company which was promoted by the kins of Raju.
HDFC Q3 net up 33 p.c. at Rs. 891 crore
Mortgage major HDFC today posted 33 per cent rise in third quarter profit at Rs 891 crore, boosted by higher retail sales and one-time income from sale of its investment in IL&FS.
Buoyed by the healthy numbers, the company said that it expects to close the fiscal with around 25 per cent spike in loan book.
The total income rose by 20.2 per cent to Rs. 3,321 crore in the period under review against Rs. 2,762.2 crore in the year-ago quarter.
Significantly, the company’s non-performing asset (NPA) levels came down to 0.85 per cent during the period under review from 0.94 per cent in the same period last fiscal.
HDFC also set aside an additional provision of Rs. 272 crore during October-December period to meet the recently introduced higher provisioning norms set by the home finance regulator National Housing Board (NHB) for dual rate home loans, company Vice-Chairman and Chief Executive Keki M. Mistry said.
NHB increased the provisioning coverage ratio of teaser loans to 2 per cent from 0.4 per cent.
HDFC earned a one-time income of Rs. 167.22 crore from the sale of its investment in IL&FS. In the reporting quarter, the lender had offloaded 2 per cent of its stake in educational arm of IL&FS.
In the same quarter last year, its other income, primarily from treasury operations stood at a lower Rs. 51.3 crore.
HDFC reported a 20.6 per cent increase in its loan book at Rs. 1,09,051 crore at the end of December compared to Rs. 90,110 crore in the same period last fiscal.
HDFC saw a massive 39 per cent jump in retail loan disbursals during the reporting quarter, and the overall loan book rose 27 per cent to Rs. 5,387 crore, Mr. Mistry said.
“We are hopeful of clocking 20-25 per cent rise in the loan book for the full fiscal. We are also hopeful of maintaining a good interest spread and margins in the next quarter,” Mr. Mistry said.
“Our interest spread stood at 2.15 per cent, while net interest margin (NIM) at 4.31 per cent,” he added.
Interest spread refers to the percentage difference between the interest rate charged on a bank loan and the lender’s cost of funds.
The net interest margin (NIM) is the difference between interest income generated by a bank and the interest it pays to its lenders. NIM indicates how successful the investment decisions are in comparison to the debt it raised.
Buoyed by the healthy numbers, the company said that it expects to close the fiscal with around 25 per cent spike in loan book.
The total income rose by 20.2 per cent to Rs. 3,321 crore in the period under review against Rs. 2,762.2 crore in the year-ago quarter.
Significantly, the company’s non-performing asset (NPA) levels came down to 0.85 per cent during the period under review from 0.94 per cent in the same period last fiscal.
HDFC also set aside an additional provision of Rs. 272 crore during October-December period to meet the recently introduced higher provisioning norms set by the home finance regulator National Housing Board (NHB) for dual rate home loans, company Vice-Chairman and Chief Executive Keki M. Mistry said.
NHB increased the provisioning coverage ratio of teaser loans to 2 per cent from 0.4 per cent.
HDFC earned a one-time income of Rs. 167.22 crore from the sale of its investment in IL&FS. In the reporting quarter, the lender had offloaded 2 per cent of its stake in educational arm of IL&FS.
In the same quarter last year, its other income, primarily from treasury operations stood at a lower Rs. 51.3 crore.
HDFC reported a 20.6 per cent increase in its loan book at Rs. 1,09,051 crore at the end of December compared to Rs. 90,110 crore in the same period last fiscal.
HDFC saw a massive 39 per cent jump in retail loan disbursals during the reporting quarter, and the overall loan book rose 27 per cent to Rs. 5,387 crore, Mr. Mistry said.
“We are hopeful of clocking 20-25 per cent rise in the loan book for the full fiscal. We are also hopeful of maintaining a good interest spread and margins in the next quarter,” Mr. Mistry said.
“Our interest spread stood at 2.15 per cent, while net interest margin (NIM) at 4.31 per cent,” he added.
Interest spread refers to the percentage difference between the interest rate charged on a bank loan and the lender’s cost of funds.
The net interest margin (NIM) is the difference between interest income generated by a bank and the interest it pays to its lenders. NIM indicates how successful the investment decisions are in comparison to the debt it raised.
Starbucks, Tata Coffee sign pact for collaboration
In a significant step toward market entry in India, U.S.-based Starbucks Coffee Company on Thursday signed a non-binding memorandum of understanding (MoU) with Tata Coffee, one of the region's leading providers of premium Arabica coffee beans.
The MoU will create avenues of collaboration between the two companies for sourcing and roasting high-quality green coffee beans in Tata Coffee's facility in Coorg in south India. In addition, Tata and Starbucks will jointly explore the development of Starbucks retail stores in associated retail outlets and hotels.
The two companies also will explore social projects to positively impact communities in coffee growing regions where Tata operates.
Commenting on the announcement, Tata Coffee Chairman R. K. Krishnakumar said, “We welcome Starbucks entry into India because of its unique experience with the store format and for its commitment to society, values that we share.”
“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential,” said Starbucks Coffee Company Chairman, President and CEO Howard Schultz.
“This MoU is the first step in our entry to India. We are focused on exploring local sourcing and roasting opportunities with the thousands of coffee farmers within the Tata ecosystem. We believe India can be an important source for coffee in the domestic market, as well as across the many regions globally where Starbucks has operations.”
Tata Coffee, with its large Arabica coffee production base spread over different growing districts of the South, has supplied premium coffee beans for Starbucks in the past and is now building a structure for a long-term relationship.
In the areas of sourcing and roasting, Tata Coffee and Starbucks will explore procuring green coffee from Tata Coffee estates and roasting in Tata Coffee's existing roasting facilities. At a later phase, both will consider jointly investing in additional facilities and roasting green coffee for export to other markets.
The MoU will create avenues of collaboration between the two companies for sourcing and roasting high-quality green coffee beans in Tata Coffee's facility in Coorg in south India. In addition, Tata and Starbucks will jointly explore the development of Starbucks retail stores in associated retail outlets and hotels.
The two companies also will explore social projects to positively impact communities in coffee growing regions where Tata operates.
Commenting on the announcement, Tata Coffee Chairman R. K. Krishnakumar said, “We welcome Starbucks entry into India because of its unique experience with the store format and for its commitment to society, values that we share.”
“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential,” said Starbucks Coffee Company Chairman, President and CEO Howard Schultz.
“This MoU is the first step in our entry to India. We are focused on exploring local sourcing and roasting opportunities with the thousands of coffee farmers within the Tata ecosystem. We believe India can be an important source for coffee in the domestic market, as well as across the many regions globally where Starbucks has operations.”
Tata Coffee, with its large Arabica coffee production base spread over different growing districts of the South, has supplied premium coffee beans for Starbucks in the past and is now building a structure for a long-term relationship.
In the areas of sourcing and roasting, Tata Coffee and Starbucks will explore procuring green coffee from Tata Coffee estates and roasting in Tata Coffee's existing roasting facilities. At a later phase, both will consider jointly investing in additional facilities and roasting green coffee for export to other markets.
Nokia Siemens expands delivery centre
Nokia Siemens Networks expanded its global service delivery centre and relocated it to a new site in Chennai.
Addressing a press conference here on Thursday, Armando Almeida, Head of Global Services, said the new facility, in 90,000 sq. ft., would manage over 87,000 base station sites.
Mr. Almeida said the Chennai centre was the first one set up by Nokia Siemens in 2007 to pioneer its global service delivery model providing remote delivery support across its services. It was one of the three centres operating now, the other two being in Noida and Lisbon, Portugal.
He said two other service delivery centres were now being set up in Russia and Brazil and these would become operational before the end of 2011.
Mr. Almeida said the Chennai facility, with its vast engineering and telecom talent, had played a significant role in the success of the company's alternative service delivery model. This model allowed the company to centralise and consolidate operations for customers around the world. It provided significant cost savings and improved operational efficiency, freeing up resources to allow operators to focus on the business goals.
Since 2007, the team in Chennai had grown from 120 people to over 1,000 supporting staff, 77 million subscribers and 87,000 base stations on customers' networks globally. The centre at present provides remote services including planning, optimisation services and complete network operations. It also emerged as a centre of competence for 3G and, together with the Noida centre, had delivered 90 projects in 3G globally.
Addressing a press conference here on Thursday, Armando Almeida, Head of Global Services, said the new facility, in 90,000 sq. ft., would manage over 87,000 base station sites.
Mr. Almeida said the Chennai centre was the first one set up by Nokia Siemens in 2007 to pioneer its global service delivery model providing remote delivery support across its services. It was one of the three centres operating now, the other two being in Noida and Lisbon, Portugal.
He said two other service delivery centres were now being set up in Russia and Brazil and these would become operational before the end of 2011.
Mr. Almeida said the Chennai facility, with its vast engineering and telecom talent, had played a significant role in the success of the company's alternative service delivery model. This model allowed the company to centralise and consolidate operations for customers around the world. It provided significant cost savings and improved operational efficiency, freeing up resources to allow operators to focus on the business goals.
Since 2007, the team in Chennai had grown from 120 people to over 1,000 supporting staff, 77 million subscribers and 87,000 base stations on customers' networks globally. The centre at present provides remote services including planning, optimisation services and complete network operations. It also emerged as a centre of competence for 3G and, together with the Noida centre, had delivered 90 projects in 3G globally.
Godrej Properties-Jet Airways land deal likely by end Q4
Adi Godrej-led Godrej Properties on Friday said it will close a deal to buy private air carrier Jet Airways 2.5-acre plot at the Bandra Kurla Complex (BKC) here during the ongoing quarter of the 2010-11 financial year.
“We will close the deal in this fiscal itself. However, we can’t provide any further details on this,” a top Godrej Properties official said on condition of anonymity.
Jet Airways, the owner of the land parcel at the BKC, wants to sell the property so that it can pay off the Rs. 400 crore it had borrowed from HDFC Bank to buy the land from the Maharashtra government.
While the official did not divulge the financial details of the deal, it is understood that Godrej is willing to pay around Rs. 500 crore for the land parcel.
Godrej plans to develop a commercial property on the site, the official said, adding this would be done in a timeframe of 2-3 years.
“We will close the deal in this fiscal itself. However, we can’t provide any further details on this,” a top Godrej Properties official said on condition of anonymity.
Jet Airways, the owner of the land parcel at the BKC, wants to sell the property so that it can pay off the Rs. 400 crore it had borrowed from HDFC Bank to buy the land from the Maharashtra government.
While the official did not divulge the financial details of the deal, it is understood that Godrej is willing to pay around Rs. 500 crore for the land parcel.
Godrej plans to develop a commercial property on the site, the official said, adding this would be done in a timeframe of 2-3 years.
3 Cummins plants inaugurated
Cummins in India on Friday inaugurated three plants at its Phaltan, Pune, Megasite. The company invested Rs.500 crore in these plants. The 300-acre project qualifies for ‘mega project' of the Maharashtra Government.
Half of the acreage is set up as a Domestic Tariff Area and the other half as a Special Economic Zone (SEZ) for exports.
The first three plants that were launched today [Friday] were Tata Cummins' second manufacturing facility producing engines for commercial vehicles, power generation and industrial markets, an engine rebuild centre and a reconditioning facility for remanufacturing engines and components.
According to Tim Solso, Chairman and CEO, Cummins Inc., “… the concept of co-locating our businesses at a common campus offers the advantage of scale and greater synergy to our operations. We believe a project of the scale of the Megasite involving investments of about $300 million spanning the next few years, is a demonstration of our commitment to further strengthen our long and valued association with India.”
Anant Talaulicar, Managing Director of Cummins Group in India, said, “We have significantly and profitably grown our businesses in India over the last few years and we expect this positive trend to continue in future.”
Over the last few years, the Cummins Group in India has been executing an aggressive growth plan involving all nine affiliated companies. The second Tata Cummins plant, The Cummins India rebuild centre for high horsepower engines and Cummins Technologies India's ReCon plant are the first of several forthcoming projects to come up at the Megasite.
Tata Cummins, one of Cummins Group's nine affiliated companies, is a joint venture between Cummins Inc. and Tata Motors and was formed in 1993. The joint venture's existing Jamshedpur plant produces the B series and ISB electronic engines for commercial vehicles, power generation and industrial markets.
The new plant at the Megasite will make the B Series mechanical engine, a cost-effective BS-III compliant solution for the Indian market and the ISB electronic engines for the BS-IV norms. The facility has been designed to make 90,000 units annually, and can expand to 1.20 lakh units.
The high horsepower rebuild centre will rebuild engines from 19 litres (K19) up to 60 litres (QSK60 series) and also repair all other Cummins manufactured engine models.
The third facility, ReCon India, introduces the new concept of remanufacturing in India, which requires 85 per cent lesser energy than making the very same product from new parts. The facility will offer professionally remanufactured, high quality engines and components built in accordance with stringent functional specifications of the original product. The business will offer the latest emissions capable products, covered under Cummins warranty.
Half of the acreage is set up as a Domestic Tariff Area and the other half as a Special Economic Zone (SEZ) for exports.
The first three plants that were launched today [Friday] were Tata Cummins' second manufacturing facility producing engines for commercial vehicles, power generation and industrial markets, an engine rebuild centre and a reconditioning facility for remanufacturing engines and components.
According to Tim Solso, Chairman and CEO, Cummins Inc., “… the concept of co-locating our businesses at a common campus offers the advantage of scale and greater synergy to our operations. We believe a project of the scale of the Megasite involving investments of about $300 million spanning the next few years, is a demonstration of our commitment to further strengthen our long and valued association with India.”
Anant Talaulicar, Managing Director of Cummins Group in India, said, “We have significantly and profitably grown our businesses in India over the last few years and we expect this positive trend to continue in future.”
Over the last few years, the Cummins Group in India has been executing an aggressive growth plan involving all nine affiliated companies. The second Tata Cummins plant, The Cummins India rebuild centre for high horsepower engines and Cummins Technologies India's ReCon plant are the first of several forthcoming projects to come up at the Megasite.
Tata Cummins, one of Cummins Group's nine affiliated companies, is a joint venture between Cummins Inc. and Tata Motors and was formed in 1993. The joint venture's existing Jamshedpur plant produces the B series and ISB electronic engines for commercial vehicles, power generation and industrial markets.
The new plant at the Megasite will make the B Series mechanical engine, a cost-effective BS-III compliant solution for the Indian market and the ISB electronic engines for the BS-IV norms. The facility has been designed to make 90,000 units annually, and can expand to 1.20 lakh units.
The high horsepower rebuild centre will rebuild engines from 19 litres (K19) up to 60 litres (QSK60 series) and also repair all other Cummins manufactured engine models.
The third facility, ReCon India, introduces the new concept of remanufacturing in India, which requires 85 per cent lesser energy than making the very same product from new parts. The facility will offer professionally remanufactured, high quality engines and components built in accordance with stringent functional specifications of the original product. The business will offer the latest emissions capable products, covered under Cummins warranty.
Intel reports record profit of $3.4 bn in Q4
Bolstered by increased demand from enterprises, Intel’s profit surged 48 per cent to a record of $3.4 billion for the three months ended December 2010.
In the year-ago period, the global chip maker had a profit of $2.3 billion.
“2010 was the best year in Intel’s history. We believe that 2011 will be even better,” Intel President and CEO Paul Otellini said.
Intel’s huge fourth-quarter profit came on record revenues of $11.5 billion.
“PC client group revenue flat, data centre group revenue up 15 per cent, other Intel architecture group flat and Intel Atom microprocessor and chipset revenue of $391 million flat, all sequentially,” Intel said in a statement on Thursday.
Even though, revenues from consumer PC was almost flat, the sluggishness was mostly offset by higher demand from businesses.
The fourth quarter also saw a net gain of $140 million from equity investments and interest.
For the full year, the company reported a profit of $11.7 billion on revenues of $43.6 billion.
Intel said that it expects revenues of $11.5 billion - which could be plus or minus $400 million - in the first quarter of 2011.
Tuesday, January 11, 2011
Haryana to set up Carbon Credit Cell
New Delhi/ Chandigarh: Haryana Government has decided to setup a Carbon Credit Cell, which would guide the local entrepreneurs to adopt the relevant technology to earn carbon credits.
While starting this here today, a spokesman of Haryana Industries and Commerce Department said a pilot project for development of Eco-City at a few brown-field locations was being taken up on pilot basis within the Manesar-Bawal Investment Region of Delhi-Mumbai Industrial Corridor (DMIC) by a consortium of Japanese companies.
The Government aims to encourage Environment Management by rational use of resources, environment audit and taking measures to reduce pollution load, waste recovery, recycling and waste recharge besides focusing on adoption of clean process technology.
The Government also intended to gain carbon credits and reduce carbon footprints in the industrial sectors. It would provide greater opportunity to the people willing to take the benefit of green business like carbon credit earning.
The official added, at conservation and efficient management of water resources has been declared as the focus area and priority of the Government.
The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) would lay dual pipelines for supply of fresh and treated water so as to target a situation of zero discharge from its specific industrial sectors within a reasonable time-frame.
While starting this here today, a spokesman of Haryana Industries and Commerce Department said a pilot project for development of Eco-City at a few brown-field locations was being taken up on pilot basis within the Manesar-Bawal Investment Region of Delhi-Mumbai Industrial Corridor (DMIC) by a consortium of Japanese companies.
The Government aims to encourage Environment Management by rational use of resources, environment audit and taking measures to reduce pollution load, waste recovery, recycling and waste recharge besides focusing on adoption of clean process technology.
The Government also intended to gain carbon credits and reduce carbon footprints in the industrial sectors. It would provide greater opportunity to the people willing to take the benefit of green business like carbon credit earning.
The official added, at conservation and efficient management of water resources has been declared as the focus area and priority of the Government.
The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) would lay dual pipelines for supply of fresh and treated water so as to target a situation of zero discharge from its specific industrial sectors within a reasonable time-frame.
9 solar power projects approved for Haryana
New Delhi/Chandigarh: The Government of India has approved nine solar power projects of 8.8 Mw capacity to be set up in Haryana by independent power producers. These projects will get commissioned by September 2011.
Haryana Power Minister Mahender Partap Singh said the Haryana Renewable Energy Development Agency (Hareda) had invited proposals from independent power producers for the installation of solar power generation plants of 100 Kw to 2 Mw capacities in the state under the Jawaharlal Nehru National Solar Mission. After the approval of the state government, Hareda issued pre-registration certificates to the 22 developers for setting up of solar power projects of 20 Mw capacity, of which nine projects had been approved by the Government of India.
He said as part of energy conservation drive launched by the state government, two projects of 100 Kw Rooftop Solar Photovoltaic had been commissioned at M/s Omax Auto Ltd, Manesar and Daruhera units at a cost of Rs 260 lakh each. Ministry of New Renewable Energy have provided a total financial assistance of Rs 150 lakh for these projects. One such project of 50 Kw had also been commissioned recently at Retreat, Teri, Gawal Pahari and Gurgaon.
A small hydro project of 6 Mw was commissioned at Dadupur, Yamuna Nagar in March 2010 and a small hydro plant of 2 Mw commissioned at Gogripur, Karnal in September 2010, said the Minister, adding, a 1 Mw distillery effluents-based power project have also been commissioned at M/s Ashoka Distilleries, Hathin, district Palwal at a cost of Rs 4 crore.
Besides, three biomass co-generation projects of 2.5 Mw capacity were being setup at a cost of Rs 11.25 crore in private industries and were likely to be commissioned by the end of the current financial year. Biogas-based power project of 200 Kw was also being setup at Dera Sacha Sauda, Sirsa which was likely to be completed by March 2011.
Haryana Power Minister Mahender Partap Singh said the Haryana Renewable Energy Development Agency (Hareda) had invited proposals from independent power producers for the installation of solar power generation plants of 100 Kw to 2 Mw capacities in the state under the Jawaharlal Nehru National Solar Mission. After the approval of the state government, Hareda issued pre-registration certificates to the 22 developers for setting up of solar power projects of 20 Mw capacity, of which nine projects had been approved by the Government of India.
He said as part of energy conservation drive launched by the state government, two projects of 100 Kw Rooftop Solar Photovoltaic had been commissioned at M/s Omax Auto Ltd, Manesar and Daruhera units at a cost of Rs 260 lakh each. Ministry of New Renewable Energy have provided a total financial assistance of Rs 150 lakh for these projects. One such project of 50 Kw had also been commissioned recently at Retreat, Teri, Gawal Pahari and Gurgaon.
A small hydro project of 6 Mw was commissioned at Dadupur, Yamuna Nagar in March 2010 and a small hydro plant of 2 Mw commissioned at Gogripur, Karnal in September 2010, said the Minister, adding, a 1 Mw distillery effluents-based power project have also been commissioned at M/s Ashoka Distilleries, Hathin, district Palwal at a cost of Rs 4 crore.
Besides, three biomass co-generation projects of 2.5 Mw capacity were being setup at a cost of Rs 11.25 crore in private industries and were likely to be commissioned by the end of the current financial year. Biogas-based power project of 200 Kw was also being setup at Dera Sacha Sauda, Sirsa which was likely to be completed by March 2011.
Green construction gaining traction in India
The physics of geothermal energy is tweaked in many ways by modern air conditioning systems
Bangalore: The overgrowth of reeds at Good Earth Orchard, a colony of 60 homes in Bangalore, is actually part of a labyrinthine water-treatment system. Gallons of used water from the colony enter it every day to be pumped out for reuse a week later, good enough at least to water the bushes.
The system recovers about 80% of wastewater without using power or chemicals. A chamber skims off lightweight waste and settles the heavy parts. Another sealed chamber uses bacteria to break down organic waste. Finally, plants such as canna at the surface aerate the water through nitrogen fixation. All this happens without a single watt of power consumed, except for the irrigation pump. What you see on the surface is lush reeds speckled by red cannas, making it a rather pretty treatment plant.
Growing use of such technologies has put India on the green-building leaderboard with countries such as the US. “About 2-3% of all construction in India is green, as good as (in) the US. In the next two or three years, we want to bring it up to 10%, which will put us on top,” says S. Srinivas, principal counsellor the Indian Green Building Council (IGBC), a body that certifies green constructions.
Not all these technologies are 21st century innovations. Green construction in India uses a liberal mix of modern science and methods that are nearly 400 years old. Take wind towers, for example, a system used for decades by Arabs in West Asian deserts to keep buildings cool. The Confederation of Indian Industry’s (CII) Institute of Quality in Bangalore uses this technology to continuously supply air in the building. So do the office of the inspector general of police (IGP) in Gulbarga, and Aquamall Water Solutions building in Dehradun.
Wind towers are a series of concrete or fly ash towers. Every morning, these draw in hot air, which passes through channels splashed with water at night so cooled air is circulated through a building. The combination of increased airflow and contact with water brings down the temperature by 8-10 degrees Celsius, which in cities such as Bangalore does away with the need of air conditioning. “Warmer cities like Hyderabad can use hybrid systems,” says Srinivas.
Wind towers were often augmented in Persian architecture with geothermal systems that exploit the difference in temperature between the earth’s surface and 5-6 metres below. At this depth, across the planet, temperature is almost constant in a range of 10-15 degree Celsius. Towers connected to underground pipes would cool air even further beyond plain-vanilla wind towers.
The physics of geothermal energy is tweaked in many ways by modern air conditioning systems in Indian green buildings—another throwback to an ancient practice. Both cooling and heating can be achieved, though heating often requires a supplemental system. Geothermal systems are a major money-saver because almost 70% of the energy used by most buildings is for air conditioning.
“Geothermal systems haven’t really caught on in individual homes in India,” says Srinivas, “but corporations have started using it.” Dr Reddy’s Laboratories Ltd’s factory in Hyderabad is an example.
Conventional technologies have also kept pace. Efficiencies, or the ability of air conditioning systems to convert electricity into cooling power, are far higher today than a decade ago. “Today, we focus on part-load efficiency of an air conditioner when we certify a green building,” says Srinivas. Part-load refers to the time of the day when cooling requirements are not the highest. This is the case for most part of the day, and therefore, air conditioning efficiency during this time is more crucial than during peak-load hours.
Chandrashekar Hariharan, founder of Biodiversity Conservation India (Pvt.) Ltd (BCIL), takes another angle. BCIL uses ammonia-based air conditioning systems that are a lot less-polluting than the ozone-depleting chlorofluorocarbons used in regular air conditioners.
BCIL is an extreme example of using multiple micro-technologies to achieve tiny improvements that add up. Its complexes typically have banana and areca nut groves because of their high rate of water-vapour expiration.
The company also restricts the numbers of buildings on an acre of land depending on its water holding capacity. If the industry norm is about 90 houses per acre, BCIL would keep it at 46-48 because that is how much the rainfall on the land can sustain. “A patch of land is like your bank account,” says Hariharan. “Just like you cannot draw money without putting in, you cannot draw water without recharging it.”
BCIL only uses shallow wells instead of deep-water borewells. These are continuously recharged by rainwater.
Materials and designs at BCIL are also optimized to improve air quality. “Bangalore lies at about 13 degree north on the grid, the same latitude that passes through Mexico. Any building here would face the maximum heat on its south and west during the day. So we add more protection on these walls—non heat-transmitting materials and hollow bricks,” says Hariharan.
The use of fine controls and technologies cannot be emphasised enough. “This is why building management systems (BMS) have become so important,” says Srinivas. “They allow you to operate many energy-consuming devices in large buildings from a single switchboard. A chiller would be remotely shut down if not needed, and power would be switched off in rooms not used, for example.” An IGBC study shows energy savings from BMS can be up to 13%.
Over the years, with more green construction happening in India, an industry catering to this has sprung up. High performance glass, which can arrest almost 30% of heat in windows, is manufactured by Saint-Gobain and Asahi (India Glass Ltd), while waterless urinals, which use concepts of specific gravity, are manufactured by Parryware, Hindware, etc.
As demand grows, these technologies get cheaper. Waterless urinals now cost only Rs6,000 a piece compared with Rs15,000-16,000 some years ago. “It’s a virtuous cycle,” says an optimistic Srinivas. “As the tech gets cheaper, adoption rises.”
Bangalore: The overgrowth of reeds at Good Earth Orchard, a colony of 60 homes in Bangalore, is actually part of a labyrinthine water-treatment system. Gallons of used water from the colony enter it every day to be pumped out for reuse a week later, good enough at least to water the bushes.
The system recovers about 80% of wastewater without using power or chemicals. A chamber skims off lightweight waste and settles the heavy parts. Another sealed chamber uses bacteria to break down organic waste. Finally, plants such as canna at the surface aerate the water through nitrogen fixation. All this happens without a single watt of power consumed, except for the irrigation pump. What you see on the surface is lush reeds speckled by red cannas, making it a rather pretty treatment plant.
Growing use of such technologies has put India on the green-building leaderboard with countries such as the US. “About 2-3% of all construction in India is green, as good as (in) the US. In the next two or three years, we want to bring it up to 10%, which will put us on top,” says S. Srinivas, principal counsellor the Indian Green Building Council (IGBC), a body that certifies green constructions.
Not all these technologies are 21st century innovations. Green construction in India uses a liberal mix of modern science and methods that are nearly 400 years old. Take wind towers, for example, a system used for decades by Arabs in West Asian deserts to keep buildings cool. The Confederation of Indian Industry’s (CII) Institute of Quality in Bangalore uses this technology to continuously supply air in the building. So do the office of the inspector general of police (IGP) in Gulbarga, and Aquamall Water Solutions building in Dehradun.
Wind towers are a series of concrete or fly ash towers. Every morning, these draw in hot air, which passes through channels splashed with water at night so cooled air is circulated through a building. The combination of increased airflow and contact with water brings down the temperature by 8-10 degrees Celsius, which in cities such as Bangalore does away with the need of air conditioning. “Warmer cities like Hyderabad can use hybrid systems,” says Srinivas.
Wind towers were often augmented in Persian architecture with geothermal systems that exploit the difference in temperature between the earth’s surface and 5-6 metres below. At this depth, across the planet, temperature is almost constant in a range of 10-15 degree Celsius. Towers connected to underground pipes would cool air even further beyond plain-vanilla wind towers.
The physics of geothermal energy is tweaked in many ways by modern air conditioning systems in Indian green buildings—another throwback to an ancient practice. Both cooling and heating can be achieved, though heating often requires a supplemental system. Geothermal systems are a major money-saver because almost 70% of the energy used by most buildings is for air conditioning.
“Geothermal systems haven’t really caught on in individual homes in India,” says Srinivas, “but corporations have started using it.” Dr Reddy’s Laboratories Ltd’s factory in Hyderabad is an example.
Conventional technologies have also kept pace. Efficiencies, or the ability of air conditioning systems to convert electricity into cooling power, are far higher today than a decade ago. “Today, we focus on part-load efficiency of an air conditioner when we certify a green building,” says Srinivas. Part-load refers to the time of the day when cooling requirements are not the highest. This is the case for most part of the day, and therefore, air conditioning efficiency during this time is more crucial than during peak-load hours.
Chandrashekar Hariharan, founder of Biodiversity Conservation India (Pvt.) Ltd (BCIL), takes another angle. BCIL uses ammonia-based air conditioning systems that are a lot less-polluting than the ozone-depleting chlorofluorocarbons used in regular air conditioners.
BCIL is an extreme example of using multiple micro-technologies to achieve tiny improvements that add up. Its complexes typically have banana and areca nut groves because of their high rate of water-vapour expiration.
The company also restricts the numbers of buildings on an acre of land depending on its water holding capacity. If the industry norm is about 90 houses per acre, BCIL would keep it at 46-48 because that is how much the rainfall on the land can sustain. “A patch of land is like your bank account,” says Hariharan. “Just like you cannot draw money without putting in, you cannot draw water without recharging it.”
BCIL only uses shallow wells instead of deep-water borewells. These are continuously recharged by rainwater.
Materials and designs at BCIL are also optimized to improve air quality. “Bangalore lies at about 13 degree north on the grid, the same latitude that passes through Mexico. Any building here would face the maximum heat on its south and west during the day. So we add more protection on these walls—non heat-transmitting materials and hollow bricks,” says Hariharan.
The use of fine controls and technologies cannot be emphasised enough. “This is why building management systems (BMS) have become so important,” says Srinivas. “They allow you to operate many energy-consuming devices in large buildings from a single switchboard. A chiller would be remotely shut down if not needed, and power would be switched off in rooms not used, for example.” An IGBC study shows energy savings from BMS can be up to 13%.
Over the years, with more green construction happening in India, an industry catering to this has sprung up. High performance glass, which can arrest almost 30% of heat in windows, is manufactured by Saint-Gobain and Asahi (India Glass Ltd), while waterless urinals, which use concepts of specific gravity, are manufactured by Parryware, Hindware, etc.
As demand grows, these technologies get cheaper. Waterless urinals now cost only Rs6,000 a piece compared with Rs15,000-16,000 some years ago. “It’s a virtuous cycle,” says an optimistic Srinivas. “As the tech gets cheaper, adoption rises.”
SBI to set up 600 financial inclusion centres
Mumbai: In a bid to give back-end support to business correspondents operating in rural areas and also exercise administrative control on them, State Bank of India has decided to set up 600 financial inclusion centres across the country.
The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages (identified according to 2001 census) having a population of over 2,000 by March-end 2012.
According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, between them have to ensure that all identified villages have appropriate banking services by March-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up.
As the FICs have been envisaged by SBI, each centre will provide the BCs back-end support services for opening ‘no frills account', processing applications for micro-credit (up to Rs 25,000) sourced by them, and cash management. Further, the centre will also keep tabs on the progress made by the BC in furthering the bank's financial inclusion plan.
Each FIC will support and control 25 BCs. India's biggest lender has marshalled the services of 14,000 odd BCs, including those working with third-party technology service providers, for fulfilling its financial inclusion mandate.
By March-end 2011, SBI will have 300 FICs. Last month, the bank set up 22 FICs in Andhra Pradesh and four in the National Capital Region. Overall, it will establish 600 FICs by March-end 2012.
Basic banking services
“Under the financial inclusion plan, our bank is currently providing basic banking services in 1,300 villages. This number will jump to 5,300 by March-end 2011. We will complete the target of providing banking outreach in 12,421 villages by March-end 2012,” said Mr M.I. Dholakia, Deputy General Manager, SBI.
A BC undertakes activities such as identification of borrowers; collection and preliminary processing of loan applications including verification of primary information/ data; creating awareness about savings and other products and advice on managing money and debt counselling; submit loan applications to banks; disbursal of small value credit, recovery of principal/ collection of interest, collection of small value deposits, sale of micro insurance/ mutual fund products/ pension products/ other third party products and receipt and delivery of small value remittances/ other payment instruments.
Among others, the entities that can function as BCs include NGOs/ MFIs set up under Societies/ Trust Acts, Post Offices, retired bank employees, ex-servicemen, retired teachers, retired government employees, individual kirana/ medical/ fair price shop owners, Public Call Office operators, agents of small savings schemes of Government of India/ Insurance Companies, individuals who own petrol pumps, and authorised functionaries of well run Self Help Groups (SHGs) linked to banks.
The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages (identified according to 2001 census) having a population of over 2,000 by March-end 2012.
According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, between them have to ensure that all identified villages have appropriate banking services by March-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up.
As the FICs have been envisaged by SBI, each centre will provide the BCs back-end support services for opening ‘no frills account', processing applications for micro-credit (up to Rs 25,000) sourced by them, and cash management. Further, the centre will also keep tabs on the progress made by the BC in furthering the bank's financial inclusion plan.
Each FIC will support and control 25 BCs. India's biggest lender has marshalled the services of 14,000 odd BCs, including those working with third-party technology service providers, for fulfilling its financial inclusion mandate.
By March-end 2011, SBI will have 300 FICs. Last month, the bank set up 22 FICs in Andhra Pradesh and four in the National Capital Region. Overall, it will establish 600 FICs by March-end 2012.
Basic banking services
“Under the financial inclusion plan, our bank is currently providing basic banking services in 1,300 villages. This number will jump to 5,300 by March-end 2011. We will complete the target of providing banking outreach in 12,421 villages by March-end 2012,” said Mr M.I. Dholakia, Deputy General Manager, SBI.
A BC undertakes activities such as identification of borrowers; collection and preliminary processing of loan applications including verification of primary information/ data; creating awareness about savings and other products and advice on managing money and debt counselling; submit loan applications to banks; disbursal of small value credit, recovery of principal/ collection of interest, collection of small value deposits, sale of micro insurance/ mutual fund products/ pension products/ other third party products and receipt and delivery of small value remittances/ other payment instruments.
Among others, the entities that can function as BCs include NGOs/ MFIs set up under Societies/ Trust Acts, Post Offices, retired bank employees, ex-servicemen, retired teachers, retired government employees, individual kirana/ medical/ fair price shop owners, Public Call Office operators, agents of small savings schemes of Government of India/ Insurance Companies, individuals who own petrol pumps, and authorised functionaries of well run Self Help Groups (SHGs) linked to banks.
Tata, partner to hold 100% in African unit
Mumbai: Tata Steel and its Australian joint venture partner Riversdale Mining is acquiring full ownership of the $1-billion Benga power plant in Mozambique for an undisclosed amount. They are buying out Elgas’ 50% stake in Benga, which is expected to generate electricity in the next two years.
Riversdale, in which Tata Steel is the largest shareholder , said that moving to full control in the Benga power plant would accelerate the development of the project. It also would help in bringing in new strategic investors to the project.
Riversdale is subject to a takeover from Rio Tinto , which has offered $3.9 billion.
The coal-fired Benga power project is expected to produce 500 to 600 MW in the first phase and thereafter to 2,000 MW. After buying out Elgas in the Benga power project, the new shareholding pattern will be Tata Steel with a 35% and Riversdale with 65%.
Coal for the power plant will be provided from Riversdale’s coal mine, which is also in Benga. And the electricity generated from the power plant would be used to feed Riversdale’s Zambeze project and distribute it to South Africa’s power network.
Riversdale, in which Tata Steel is the largest shareholder , said that moving to full control in the Benga power plant would accelerate the development of the project. It also would help in bringing in new strategic investors to the project.
Riversdale is subject to a takeover from Rio Tinto , which has offered $3.9 billion.
The coal-fired Benga power project is expected to produce 500 to 600 MW in the first phase and thereafter to 2,000 MW. After buying out Elgas in the Benga power project, the new shareholding pattern will be Tata Steel with a 35% and Riversdale with 65%.
Coal for the power plant will be provided from Riversdale’s coal mine, which is also in Benga. And the electricity generated from the power plant would be used to feed Riversdale’s Zambeze project and distribute it to South Africa’s power network.
Surya acquires US drug brand ActivOn
New Delhi/ Chandigarh: Chandigarh-based Surya Pharmaceutical Ltd, a premier integrated pharmaceutical company in India, has acquired ActivOn, a leading OTC analgesic drug brand in the USA, with global marketing rights.
The brand comes with the acquisition of Ameshire Investment Corp, USA through its 100% subsidiary based out of Singapore. The company has funded the investment of US$ 22 million through a mix of internal accrual and debt financing from EXIM Bank.
ActivOn is a leading OTC analgesic brand in the topical analgesic category in the US market. It is used to provide relief of joint and muscle pain associated with arthritis, backache, strains, bruises and sprains.
Through the acquisition, the company also adds to its portfolio brands namely, PREFERON, FIRSTON and RENEWIN. The company would also have the global marketing rights for HEADON, another leading brand, except USA.
Commenting on the development, Hari Om Bhatia, CEO, Surya Pharma said, “This acquisition will not only entitle us to ready shelf space with leading retailers like Walmart, Walgreen, CVS, RiteAid, etc. but also will be instrumental in establishing our presence in the US markets. Our presence in the coming years will offer attractive opportunity to launch our OTC/FMCG products, using ActivOn’s distribution set-up.”
The brand comes with the acquisition of Ameshire Investment Corp, USA through its 100% subsidiary based out of Singapore. The company has funded the investment of US$ 22 million through a mix of internal accrual and debt financing from EXIM Bank.
ActivOn is a leading OTC analgesic brand in the topical analgesic category in the US market. It is used to provide relief of joint and muscle pain associated with arthritis, backache, strains, bruises and sprains.
Through the acquisition, the company also adds to its portfolio brands namely, PREFERON, FIRSTON and RENEWIN. The company would also have the global marketing rights for HEADON, another leading brand, except USA.
Commenting on the development, Hari Om Bhatia, CEO, Surya Pharma said, “This acquisition will not only entitle us to ready shelf space with leading retailers like Walmart, Walgreen, CVS, RiteAid, etc. but also will be instrumental in establishing our presence in the US markets. Our presence in the coming years will offer attractive opportunity to launch our OTC/FMCG products, using ActivOn’s distribution set-up.”
HCL Infosys acquires 20% in Dubai firm
New Delhi: Noida-based IT hardware firm HCL Infosystems on Thursday expanded its distribution business in Middle East by acquiring a 20% stake in Dubai-based Techmart Telecom Distribution FZCO, the Nokia distributor for Gulf and Africa.
The buyout is expected to add 20% of Techmart Telecom’s profits to HCL Infosystem’s bottoml ine next year. Techmart Telecom generates sales of about $40-50 million per month.
Post the deal announcement, HCL Infosystems stock moved up marginally by 0.8% to Rs 115 on the Bombay Stock Exchange
“We are consulting our advisors (PricewaterhouseCoopers) on how to consolidate revenues and profits of the new minority subsidiary to our financials. The buyout will give us a presence in almost 50 countries spread across Africa and Middle East,” HCL Infosystems CEO Harsh Chitale told ET.
The agreement provides an option to the Company to increase the equity stake in Techmart Telecom upto 51%. There is no deadline to the execution of the agreement to buy rest of the stake in Techmart Telecom. HCL Infosystems will also provide consultancy and operational services to the Dubai-based firm.
Chris Braam, VP-Sales Nokia Middle East and Asia said that HCL Infosystems is a key partner of Nokia globally. “We look forward to work with HCL Infosytems and Techmart Telecom, to expand our smartphone business in Middle East and Africa.”
The amount spent on the share purchase, executed through a special purpose vehicle set up in Singapore was not disclosed. The share purchase was funded through the cash reserves HCL Infosystems generated via a Rs 500 crore share issue to qualified institutional buyers, last year.
HCL Infosystems’ generated just Rs 242 crore of net profit on sales of Rs 12,159 crore, for the year ended June 30, 2010. About Rs 8,000 crore was earned from the IT distribution business, of which Nokia phone sales in north and east India accounted for maximum contribution. The company also distributes Apple, Nintendo and HP products in India.
The buyout is expected to add 20% of Techmart Telecom’s profits to HCL Infosystem’s bottoml ine next year. Techmart Telecom generates sales of about $40-50 million per month.
Post the deal announcement, HCL Infosystems stock moved up marginally by 0.8% to Rs 115 on the Bombay Stock Exchange
“We are consulting our advisors (PricewaterhouseCoopers) on how to consolidate revenues and profits of the new minority subsidiary to our financials. The buyout will give us a presence in almost 50 countries spread across Africa and Middle East,” HCL Infosystems CEO Harsh Chitale told ET.
The agreement provides an option to the Company to increase the equity stake in Techmart Telecom upto 51%. There is no deadline to the execution of the agreement to buy rest of the stake in Techmart Telecom. HCL Infosystems will also provide consultancy and operational services to the Dubai-based firm.
Chris Braam, VP-Sales Nokia Middle East and Asia said that HCL Infosystems is a key partner of Nokia globally. “We look forward to work with HCL Infosytems and Techmart Telecom, to expand our smartphone business in Middle East and Africa.”
The amount spent on the share purchase, executed through a special purpose vehicle set up in Singapore was not disclosed. The share purchase was funded through the cash reserves HCL Infosystems generated via a Rs 500 crore share issue to qualified institutional buyers, last year.
HCL Infosystems’ generated just Rs 242 crore of net profit on sales of Rs 12,159 crore, for the year ended June 30, 2010. About Rs 8,000 crore was earned from the IT distribution business, of which Nokia phone sales in north and east India accounted for maximum contribution. The company also distributes Apple, Nintendo and HP products in India.
Sahara buys UK hotel for Rs 3,275cr
Mumbai: In the first crossborder deal for the Indian hospitality sector this year and also the first one for Subrata Roy's Sahara India, the Lucknow-based financial services-to-real estate conglomerate has acquired UK's iconic Grosvenor House hotel for a knock-down price of £470 million (Rs 3,275 crore) from the Royal Bank of Scotland (RBS).
The UK has been a favourite shopping destination for Indian companies, with several well-known assets like Tetley and Typhoo in the tea category, Cuticura, Erasmic and Nulon in cosmetics and premier auto brands Jaguar & Land Rover having been snapped up.
The 494-room luxury property on London's Park Lane, which was once home to the Duke of Westminster, is Sahara India's second acquisition in the hospitality sector after its 2006 buyout of Sahara Star hotel, earlier known as Airport Centaur, in Mumbai.
"This acquisition is part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures internationally," said Subrata Roy Sahara, managing worker & chairman, Sahara Group.
RBS took over Grosvenor House in 2001 after Le Meridien collapsed into administrative receivership. The bank had been looking for a buyer for Grosvenor House for the last three years. At that time, the hotel was "valued for more than £1 billion." However, unfavourable economic conditions hit valuations hard. Roy said, "The valuation, even today, is quite high but due to a highly satisfactory due diligence by RBS and after long and strict negotiations, we have purchased it for £470 million."
Richard Lewczynski of Blandford Goldsmith put the deal together for Sahara India, which has acquired the property through Amby Valley Ltd. Grosvenor House, which has the largest banquet hall in London, is managed by the US-based Marriott International and is positioned as a JW Marriott hotel since September 2008. However, following the change in ownership, Sahara and Marriott will jointly manage the property.
The conglomerate plans to refurbish Grosvenor House by offering several facilities such as an Indian restaurant under the name Namak, a night club, swimming pool and spa.
When Subrata Roy took over Sahara Star, he gave the property a complete makeover. The five-star hotel boasts of being the world's largest pillar-less clear-tosky dome structure complemented by India's biggest marine aquarium.
Kaushik Vardharajan, MD of HVS, a global hospitality consultancy firm, said, "The US and European hospitality sector continues to be under pressure with low room occupancy levels and dropping tariffs. As a result, valuation of hotels has declined significantly. This helps companies like Sahara to acquire properties at a discount."
Vardharajan added that in terms of capital investment, it works out better to acquire hotels abroad at a discount compared to building one in India. The cash flows kicks in immediately in a running hotel compared to a greenfield one.
The UK has been a favourite shopping destination for Indian companies, with several well-known assets like Tetley and Typhoo in the tea category, Cuticura, Erasmic and Nulon in cosmetics and premier auto brands Jaguar & Land Rover having been snapped up.
The 494-room luxury property on London's Park Lane, which was once home to the Duke of Westminster, is Sahara India's second acquisition in the hospitality sector after its 2006 buyout of Sahara Star hotel, earlier known as Airport Centaur, in Mumbai.
"This acquisition is part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures internationally," said Subrata Roy Sahara, managing worker & chairman, Sahara Group.
RBS took over Grosvenor House in 2001 after Le Meridien collapsed into administrative receivership. The bank had been looking for a buyer for Grosvenor House for the last three years. At that time, the hotel was "valued for more than £1 billion." However, unfavourable economic conditions hit valuations hard. Roy said, "The valuation, even today, is quite high but due to a highly satisfactory due diligence by RBS and after long and strict negotiations, we have purchased it for £470 million."
Richard Lewczynski of Blandford Goldsmith put the deal together for Sahara India, which has acquired the property through Amby Valley Ltd. Grosvenor House, which has the largest banquet hall in London, is managed by the US-based Marriott International and is positioned as a JW Marriott hotel since September 2008. However, following the change in ownership, Sahara and Marriott will jointly manage the property.
The conglomerate plans to refurbish Grosvenor House by offering several facilities such as an Indian restaurant under the name Namak, a night club, swimming pool and spa.
When Subrata Roy took over Sahara Star, he gave the property a complete makeover. The five-star hotel boasts of being the world's largest pillar-less clear-tosky dome structure complemented by India's biggest marine aquarium.
Kaushik Vardharajan, MD of HVS, a global hospitality consultancy firm, said, "The US and European hospitality sector continues to be under pressure with low room occupancy levels and dropping tariffs. As a result, valuation of hotels has declined significantly. This helps companies like Sahara to acquire properties at a discount."
Vardharajan added that in terms of capital investment, it works out better to acquire hotels abroad at a discount compared to building one in India. The cash flows kicks in immediately in a running hotel compared to a greenfield one.
Drug retail sales up 18% in 2010 as cos take rural roads
New Delhi: Sales in the domestic drug retail market rose a healthy 18.36% during 2010, making India an attractive destination for foreign players who have been looking to buy local companies to increase exposure in one of the fastest growing healthcare markets globally.
The size of Indian drug retail market crossed Rs 46,500 crore for the 12 months ended November 2010, according to research firm IMS Health Information and Consulting Services. The stock market also captured the double digit growth in the pharma market with BSE Healthcare, a share index of drugmakers generating 31% returns for shareholders, better than the market benchmark Sensex.
Ranjit Kapadia, VP Institutional Sales at brokerage HDFC Securities who tracks pharma companies said, "Many companies forayed in rural market through new marketing teams and channels expanding the overall market."
American drugmaker Abbott Laboratories, which acquired Mumbai-based Piramal Healthcare's domestic branded medicines business for $3.7 billion in May this year, held on to its top position with a 6.9% market share despite a sluggish growth of its new business.
The acquired business, grew a meagre 12.7% for the 12-month ended November 2010 over the year-ago period. For November alone, it was the worst performer among the top 20 drugmakers with a mere 1.1% growth.
Sales of its best selling brand cough syrup Phensedyl fell as much as 72% to Rs 5.4 crore in November, due to shortage of raw materials. This has pushed Phensedyl down to the fourth position among the top selling medicine brands in the country. Till recently, it used to compete closely with Pfizer's cough syrup Corex, the best selling drug in India.
The size of Indian drug retail market crossed Rs 46,500 crore for the 12 months ended November 2010, according to research firm IMS Health Information and Consulting Services. The stock market also captured the double digit growth in the pharma market with BSE Healthcare, a share index of drugmakers generating 31% returns for shareholders, better than the market benchmark Sensex.
Ranjit Kapadia, VP Institutional Sales at brokerage HDFC Securities who tracks pharma companies said, "Many companies forayed in rural market through new marketing teams and channels expanding the overall market."
American drugmaker Abbott Laboratories, which acquired Mumbai-based Piramal Healthcare's domestic branded medicines business for $3.7 billion in May this year, held on to its top position with a 6.9% market share despite a sluggish growth of its new business.
The acquired business, grew a meagre 12.7% for the 12-month ended November 2010 over the year-ago period. For November alone, it was the worst performer among the top 20 drugmakers with a mere 1.1% growth.
Sales of its best selling brand cough syrup Phensedyl fell as much as 72% to Rs 5.4 crore in November, due to shortage of raw materials. This has pushed Phensedyl down to the fourth position among the top selling medicine brands in the country. Till recently, it used to compete closely with Pfizer's cough syrup Corex, the best selling drug in India.
India to become fourth largest passenger vehicle market in three years
New Delhi: India is poised to become the world's fourth largest passenger vehicles (PV) market in three years, with an investment requirement of around US$ 20 billion for the construction of nine new plants to address the growing demand, according to global consulting firm Booz&Co.
The Indian PV market is expected to touch 3.5 million units mark in the next three years.
Booz&Co Partner Vikas Sehgal said that the Indian PV market, currently the seventh largest, is expected to grow at 15-20 per cent every year till 2013. He added that India will even cross Japan by selling about five million PVs by 2017-18. He further said that in the next three years, India will need 6 to 9 new car plants with an average annual capacity of 1.5 lakh units, requiring an investment of at least US$ 15-20 billion.
According to Society of Indian Automobile Manufacturers, the PV market stood at about 2 million units in 2009-10 and is expected to reach 2.4 million units in this fiscal.
The Indian market had earlier set a target to become a US$ 145 billion market by 2016, under the Automotive Mission Plan (AMP).
The Indian PV market is expected to touch 3.5 million units mark in the next three years.
Booz&Co Partner Vikas Sehgal said that the Indian PV market, currently the seventh largest, is expected to grow at 15-20 per cent every year till 2013. He added that India will even cross Japan by selling about five million PVs by 2017-18. He further said that in the next three years, India will need 6 to 9 new car plants with an average annual capacity of 1.5 lakh units, requiring an investment of at least US$ 15-20 billion.
According to Society of Indian Automobile Manufacturers, the PV market stood at about 2 million units in 2009-10 and is expected to reach 2.4 million units in this fiscal.
The Indian market had earlier set a target to become a US$ 145 billion market by 2016, under the Automotive Mission Plan (AMP).
Exports at 33 month high, touch US$ 22.5 billion in December 2010
New Delhi: India's exports recorded strongest growth in last 33 months. Exports grew by a significant 36.4 per cent on an annual basis – raising prospects that US$ 215 to US$ 225 billion worth of merchandise will be exported in 2010-11.
Furthermore, in December 2010, the exporting sectors registered higher growth, which includes engineering (112 per cent), electronics (88 per cent), man-made fibres (30 per cent), yarns (65 per cent) and drugs (810 per cent).
"The US markets have been (doing) pretty good, even EU markets are good," according to Mr Rahul Khullar, the Commerce Secretary. Mr Khullar further added that the "remarkable job by exports" was also attributed to the diversification of India's export markets. For instance, 112 per cent rise in engineering exports was helped much by orders from Latin American countries like Columbia.
The Government had set an export target of US$ 200 billion for 2010-11. "It is quite clear that the Indian exports are on a rebound," according to Rakesh Mohan Joshi, Indian Institute of Foreign Trade (IIFT).
Furthermore, in December 2010, the exporting sectors registered higher growth, which includes engineering (112 per cent), electronics (88 per cent), man-made fibres (30 per cent), yarns (65 per cent) and drugs (810 per cent).
"The US markets have been (doing) pretty good, even EU markets are good," according to Mr Rahul Khullar, the Commerce Secretary. Mr Khullar further added that the "remarkable job by exports" was also attributed to the diversification of India's export markets. For instance, 112 per cent rise in engineering exports was helped much by orders from Latin American countries like Columbia.
The Government had set an export target of US$ 200 billion for 2010-11. "It is quite clear that the Indian exports are on a rebound," according to Rakesh Mohan Joshi, Indian Institute of Foreign Trade (IIFT).
Power tariff policy amended to boost clean energy usage
New Delhi: To enhance green energy proportion in the energy basket, the Government has amended the Power Tariff Policy to stipulate that the States' solar power purchase obligation should go up to 3 per cent by 2022.
A decision to this effect was taken by the Cabinet on Thursday. “The solar power purchase obligation for States may start with 0.25 per cent in Phase I (by 2013) and go up to 3 per cent by 2022,” an official statement said adding that, “This will be complemented by solar specific Renewable Energy Certificate (REC) mechanism to allow solar power generation companies to sell certificates to the utilities to meet their solar power purchase obligations.”
The present amendment is in accordance with the National Solar Mission strategy. The amendment will come into effect from the date of its publication in the official gazette, the statement added.
“A need was felt to prescribe specific percentages in the Tariff Policy, which would guide the State Electricity Regulators to meet the requirements under the National Solar Mission,” a senior official said.
To ensure that the State Electricity Regulators could fix a percentage of energy purchase from solar power under the renewable purchase obligation, the Ministry of Power had proposed amendment to the Tariff Policy, 2006.
A decision to this effect was taken by the Cabinet on Thursday. “The solar power purchase obligation for States may start with 0.25 per cent in Phase I (by 2013) and go up to 3 per cent by 2022,” an official statement said adding that, “This will be complemented by solar specific Renewable Energy Certificate (REC) mechanism to allow solar power generation companies to sell certificates to the utilities to meet their solar power purchase obligations.”
The present amendment is in accordance with the National Solar Mission strategy. The amendment will come into effect from the date of its publication in the official gazette, the statement added.
“A need was felt to prescribe specific percentages in the Tariff Policy, which would guide the State Electricity Regulators to meet the requirements under the National Solar Mission,” a senior official said.
To ensure that the State Electricity Regulators could fix a percentage of energy purchase from solar power under the renewable purchase obligation, the Ministry of Power had proposed amendment to the Tariff Policy, 2006.
Govt resolves tax issues, clears way for IFRS launch by April deadline
Mumbai: The ministry of corporate affairs has resolved tax hurdles to the implementation of the International Financial Reporting Standard (IFRS) with the tax department, Salman Khurshid, the Minister of State for Corporate Affairs and Minority Affairs said on Wednesday.
“The ministry was getting positive response from companies in regards to the implementation,” Mr Khurshid said in a summit at the Bombay Stock Exchange (BSE), a day after the minister said the deadline of April 2011 for the transition to the new international accounting norms will be met. He did not disclose details.
Recently, industry body Federation of Indian Chambers of Commerce and Industry (Ficci) sought to defer the IFRS implementation beyond the deadline.
According to the road map laid out by the corporate affairs ministry , companies will have to prepare their accounts as per the new norm in a phased manner, beginning with companies that have a net worth of over Rs 1,000 crore. BSE is planning to launch a platform for SME by end of 2011, said Madhu Kannan, the exchange’s chief executive officer, in the summit. He did not give further details.
The bourse sought the Securities and Exchange Board of India’s (Sebi) approval earlier this year to launch the SME exchange. Currently, there are almost 3,000 small- and medium-sized companies that trade on BSE.
Mr Khurshid said the company law board is not in a position to take a stand in the recent Citibank fiasco, as it comes under the Indian Penal Code (IPC).
“The fraud has been committed by the irresponsibility of a few people involved and not the whole organisation, unlike Satyam . So, it has to be tried under IPC,” said the minister.
Last week, Shivraj Puri, an employee of Citibank’s Gurgaon branch, was arrested on accusations of duping some wealthy investors and diverting around Rs 350 crore.
“The ministry was getting positive response from companies in regards to the implementation,” Mr Khurshid said in a summit at the Bombay Stock Exchange (BSE), a day after the minister said the deadline of April 2011 for the transition to the new international accounting norms will be met. He did not disclose details.
Recently, industry body Federation of Indian Chambers of Commerce and Industry (Ficci) sought to defer the IFRS implementation beyond the deadline.
According to the road map laid out by the corporate affairs ministry , companies will have to prepare their accounts as per the new norm in a phased manner, beginning with companies that have a net worth of over Rs 1,000 crore. BSE is planning to launch a platform for SME by end of 2011, said Madhu Kannan, the exchange’s chief executive officer, in the summit. He did not give further details.
The bourse sought the Securities and Exchange Board of India’s (Sebi) approval earlier this year to launch the SME exchange. Currently, there are almost 3,000 small- and medium-sized companies that trade on BSE.
Mr Khurshid said the company law board is not in a position to take a stand in the recent Citibank fiasco, as it comes under the Indian Penal Code (IPC).
“The fraud has been committed by the irresponsibility of a few people involved and not the whole organisation, unlike Satyam . So, it has to be tried under IPC,” said the minister.
Last week, Shivraj Puri, an employee of Citibank’s Gurgaon branch, was arrested on accusations of duping some wealthy investors and diverting around Rs 350 crore.
SEBI approves NSE tie-ups with regional bourses
New Delhi: Securities and Exchange Board of India (SEBI) has approved the National Stock Exchange’s (NSE) tie-ups with a number of regional exchanges.
The regional trading platform approved for the tie-ups include Calcutta, Vadodara, Jaipur and Madhya Pradesh (MP). The approval would enable the members from the respective exchanges to operate on a country-wide trading platform, according to a NSE release.
The regional trading platform approved for the tie-ups include Calcutta, Vadodara, Jaipur and Madhya Pradesh (MP). The approval would enable the members from the respective exchanges to operate on a country-wide trading platform, according to a NSE release.
GDP to grow by 8.6 per cent in 2010-11: CRISIL
New Delhi: The leading credit rating agency, CRISIL Research expects India's gross domestic product (GDP) to expand by 8.6 per cent in 2010-11 and is likely to sustain an annual average of 8.4 per cent over 2010-11 to 2015-16. The growth would be driven by domestic demand spurred by a growing young population, rising middle-class consumption and increasing investment and savings.
CRISIL released its report titled 'India: Raising the bar' on January 4, 2011. The report highlighted that in order to attain a growth of 10 per cent, India will have to undertake structural reforms in infrastructure, agriculture and education and involve increased private sector participation.
CRISIL released its report titled 'India: Raising the bar' on January 4, 2011. The report highlighted that in order to attain a growth of 10 per cent, India will have to undertake structural reforms in infrastructure, agriculture and education and involve increased private sector participation.
Monday, January 10, 2011
iGate acquires majority stake in Patni Computer for USD1.22 bn
Bangalore, Jan 10 (PTI) US-based iGate today said it has acquired nearly 63 per cent stake in country''s sixth largest IT firm Patni Computer Systems for USD 1. 22 billion.
iGate will buy 45.6 per cent of the shares of the three founders of Patni -- Narendra Patni, Gajendra Patni and Ashok Patni-- along with the 17.4 per cent stake of private equity firm General Atlantic, iGate CEO Phaneesh Murthy told reporters here.
The transaction is valued at approximately USD 1.22 billion, including the mandatory 20 per cent open offer to be made to the public shareholders of Patni, he added.
The deal is expected to be completed in the first half of 2011, after acquiring all the regulatory approvals.
Shares of Patni Computer were trading at about Rs 466.80, up 1.46 per cent on the Bombay Stock Exchange
iGate will buy 45.6 per cent of the shares of the three founders of Patni -- Narendra Patni, Gajendra Patni and Ashok Patni-- along with the 17.4 per cent stake of private equity firm General Atlantic, iGate CEO Phaneesh Murthy told reporters here.
The transaction is valued at approximately USD 1.22 billion, including the mandatory 20 per cent open offer to be made to the public shareholders of Patni, he added.
The deal is expected to be completed in the first half of 2011, after acquiring all the regulatory approvals.
Shares of Patni Computer were trading at about Rs 466.80, up 1.46 per cent on the Bombay Stock Exchange
Sunday, January 2, 2011
Happy and Healthy New Year T11 ( 2011 ) & Winning Formula
Dear Think Tank,
Sam Walton, the founder of Wal-Mart ( The World's No.1 Retailer with Sales of $405.61 Billion per Year) grew up poor during the Great Depression(1930’s) , yet rose to start the biggest retail store Wal-Mart.
- - - -
Learn Sam Walton's winning formula :
Rule 1: Commit to your business / Job : Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don't know if you're born with this kind of passion, or if you can learn it. But I do know you need it. If you love your work, you'll be out there every day trying to do it the best you possibly can, and pretty soon everybody around will catch the passion from you — like a fever.
Rule 2: Share your profits/Benefits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave as a servant leader in your partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It's the single best thing we ever did.
Rule 3: Motivate your all Your associates. Money and ownership alone aren't enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your associates. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged. Keep everybody guessing as to what your next trick is going to be. Don't become too predictable.
Rule 4: Communicate everything you possibly can to your associates.. The more they know, the more they'll understand. The more they understand, the more they'll care. Once they care, there's no stopping them. If you don't trust your associates to know what's going on, they'll know you really don't consider them partners. Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.
Rule 5: Appreciate everything your associates do for the business/Job. A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often, and especially when we have done something we're really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They're absolutely free — and worth a fortune.
Rule 6: Celebrate your success. Find some humor in your failures. Don't take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm — always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Don't do a hula on Wall Street. It's been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools competition. "Why should we take those cornballs at Wal-Mart seriously?"
Rule 7: Listen to everyone in your company and figure out ways to get them talking. The folks on the front lines — the ones who actually talk to the customer — are the only ones who really know what's going on out there. You'd better find out what they know. This really is what total quality is all about. To push responsibility down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.
Rule 8: Exceed your customer's expectations. If you do, they'll come back over and over. Give them what they want — and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses — apologize. Stand behind everything you do. The two most important words I ever wrote were on that first Wal-Mart sign: "Satisfaction Guaranteed." They're still up there, and they have made all the difference.
Rule 9: Control your expenses better than your competition. This is where you can always find the competitive advantage. For twenty-five years running — long before Wal-Mart was known as the nation's largest retailer — we've ranked No. 1 in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient.
Rule 10: Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, there's a good chance you can find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you you're headed the wrong way. I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long.
Sam Walton, the founder of Wal-Mart ( The World's No.1 Retailer with Sales of $405.61 Billion per Year) grew up poor during the Great Depression(1930’s) , yet rose to start the biggest retail store Wal-Mart.
- - - -
Learn Sam Walton's winning formula :
Rule 1: Commit to your business / Job : Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don't know if you're born with this kind of passion, or if you can learn it. But I do know you need it. If you love your work, you'll be out there every day trying to do it the best you possibly can, and pretty soon everybody around will catch the passion from you — like a fever.
Rule 2: Share your profits/Benefits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave as a servant leader in your partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It's the single best thing we ever did.
Rule 3: Motivate your all Your associates. Money and ownership alone aren't enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your associates. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged. Keep everybody guessing as to what your next trick is going to be. Don't become too predictable.
Rule 4: Communicate everything you possibly can to your associates.. The more they know, the more they'll understand. The more they understand, the more they'll care. Once they care, there's no stopping them. If you don't trust your associates to know what's going on, they'll know you really don't consider them partners. Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.
Rule 5: Appreciate everything your associates do for the business/Job. A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often, and especially when we have done something we're really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They're absolutely free — and worth a fortune.
Rule 6: Celebrate your success. Find some humor in your failures. Don't take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm — always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Don't do a hula on Wall Street. It's been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools competition. "Why should we take those cornballs at Wal-Mart seriously?"
Rule 7: Listen to everyone in your company and figure out ways to get them talking. The folks on the front lines — the ones who actually talk to the customer — are the only ones who really know what's going on out there. You'd better find out what they know. This really is what total quality is all about. To push responsibility down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.
Rule 8: Exceed your customer's expectations. If you do, they'll come back over and over. Give them what they want — and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses — apologize. Stand behind everything you do. The two most important words I ever wrote were on that first Wal-Mart sign: "Satisfaction Guaranteed." They're still up there, and they have made all the difference.
Rule 9: Control your expenses better than your competition. This is where you can always find the competitive advantage. For twenty-five years running — long before Wal-Mart was known as the nation's largest retailer — we've ranked No. 1 in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient.
Rule 10: Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, there's a good chance you can find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you you're headed the wrong way. I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long.
Saturday, January 1, 2011
Tata Motors sales rise 31% in December, sells 5784 units of Nano
NEW DELHI: Automaker Tata Motors today reported 30.63 per cent increase in its December sales last year at 67,441 units sold as compared to 51,627 units sold in the same month in 2009.
The homegrown firm's total passenger vehicles sales in the domestic market in December 2010 stood at 19,706 units, which is a jump of 34.48 per cent from the same month previous year, the company said in a statement.
The company's latest offering Nano's sales during the month stood at 5,784 units, up by 60 per cent.
'Indica' reported sales of 5,923 units, which is 40 per cent up from the units sold in December 2009, Tata Motors said.
'Indigo' family recorded sales of 5,234 units, a rise of 3 per cent over the same month in the previous year. Sales of 'Sumo' and 'Safari' increased by 62 per cent to 2,765 units.
In the domestic commercial vehicles segment, the company sales increased by 25.08 per cent, as it sold 41,926 units last month compared with 33,519 units sold in December during 2009.
Light commercial vehicles' sales during the month were at 24,558 units, a growth of 35 per cent over the previous year, while medium and heavy commercial vehicle sales stood at 17,368 units, a growth of 14 per cent compared with the year-ago period.
The company exports grew by 69.18 per cent to 5,809 units sold last month compared to 3,454 units sold in December 2009.
Govt collects Rs 73.73 cr as penalty from new telcos
NEW DELHI: The government has collected Rs 73.73 crore as penalty from new telecom operators for missing the network roll-out deadline, but is still keeping open the option of cancelling the licences.
"Total penalty is about Rs 219 crore for missing roll-out obligations. We had generated demand for over Rs 78 crore of which the operators have submitted Rs 73.73 crore," Telecom Minister Kapil Sibal told reporters here.
Etisalat DB, Loop Telecom, Uninor, Sistema-Shyam and Aircel are among the operators who have submitted the liquidated damages (penalty), the minister said, adding that more notices are going to operators.
Asked whether the matter would end with the payment of penalty or licences could still be cancelled, Sibal said: "A decision will be taken after due consideration."
Etisalat DB Telecom, a Joint Venture between realty major Swan and UAE-based Etisalat, has paid Rs 9.9 crore for missing roll-out deadline in four circles. The company, however, stated that it was paying the penalty "under protest."
Uninor, a joint venture between another realty player Unitech and Telenor of Norway, has also made payment but did not disclose the amount of penalty.
Uninor had said that various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll-out and were beyond the company's control.
Sistema-Shyam, a CDMA mobile operator, has also paid about Rs 11 crore to the Department of Telecom (DoT) towards missing the roll-out obligations.
All operators are given 15-days time to respond to DoT's notice for paying penalty. The DoT is hoping to get more money in the next few days when the 15-day period would lapse in the case of other service providers.
As per the conditions of licence, the licencees are required to roll out the services in 90 per cent of the service area in metros and 10 per cent in district headquarters within 12 months from the date of award of licences.
Total penalty cannot exceed Rs 7 crore per licensing area and the telecom companies get 52 weeks before their licences are cancelled
"Total penalty is about Rs 219 crore for missing roll-out obligations. We had generated demand for over Rs 78 crore of which the operators have submitted Rs 73.73 crore," Telecom Minister Kapil Sibal told reporters here.
Etisalat DB, Loop Telecom, Uninor, Sistema-Shyam and Aircel are among the operators who have submitted the liquidated damages (penalty), the minister said, adding that more notices are going to operators.
Asked whether the matter would end with the payment of penalty or licences could still be cancelled, Sibal said: "A decision will be taken after due consideration."
Etisalat DB Telecom, a Joint Venture between realty major Swan and UAE-based Etisalat, has paid Rs 9.9 crore for missing roll-out deadline in four circles. The company, however, stated that it was paying the penalty "under protest."
Uninor, a joint venture between another realty player Unitech and Telenor of Norway, has also made payment but did not disclose the amount of penalty.
Uninor had said that various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll-out and were beyond the company's control.
Sistema-Shyam, a CDMA mobile operator, has also paid about Rs 11 crore to the Department of Telecom (DoT) towards missing the roll-out obligations.
All operators are given 15-days time to respond to DoT's notice for paying penalty. The DoT is hoping to get more money in the next few days when the 15-day period would lapse in the case of other service providers.
As per the conditions of licence, the licencees are required to roll out the services in 90 per cent of the service area in metros and 10 per cent in district headquarters within 12 months from the date of award of licences.
Total penalty cannot exceed Rs 7 crore per licensing area and the telecom companies get 52 weeks before their licences are cancelled
Carrefour enters India; opens first cash-and-carry store
NEW DELHI: The world's second-largest retailer, Carrefour, today announced that it has opened its first 'cash-and-carry' outlet in the country in New Delhi.
"The opening of this first store marks Carrefour's entry into the Indian market and will be followed shortly by the opening of other cash-and-carry stores," Carrefour CEO Lars Olofsson said in a statement.
Carrefour has made its intent to enter the multi-brand retail segment in the country known and is understood to be at an advanced stage of talks with home-grown retail giant, Future Group .
However, the existing policy of the Indian government does not permit FDI in multi-brand retail, as it is feared that traditional kirana ('mom-and-pop') outlets would be wiped out.
Nevertheless, it is understood the two companies could sign a deal as early as next year for a partnership in India.
Olafsson said opening of the first store was essential to allow Carrefour's teams to fully understand the modalities of doing business in the India market before building the company's presence in other formats. The company however, did not disclose investment details.
The new store -- Carrefour Wholesale Cash&Carry -- in Seelampur area of New Delhi is spread across 5,200 square meter and will house over 10,000 stock-keeping units to cater to professional businesses, institutions, restaurants and local retailers.
Since the FDI policy in India does not allow foreign companies to open multi-brand retail stores in the country, global retailers have opted for the cash-and-carry route to establish their presence here.
India currently allows 51 per cent foreign direct investment (FDI) in single-brand retail and 100 per cent in the cash-and-carry segment, but none in multi-brand retail.
The world's largest retailer, Wal-Mart, announced a joint venture with Bharti Enterprises in 2007 and set up the 'Best Price Modern Wholesale' cash-and-carry store in Amritsar in May, 2009.
The Bharti Wal-Mart joint venture operates four such stores in Amritsar, Zirakpur, Jalandhar and Kota and is expected to open up to 15 more wholesale cash-and-carry stores over the next three years.
German company Metro made an entry into the India market even earlier, in 2003. It currently operates six cash-and-carry stores in Hyderabad, Bangalore, Mumbai and Koltata.
Even Mukesh Ambani-led Reliance Industries Ltd's retail arm, Reliance Retail , is understood to be chalking out plans to enter the cash-and-carry business by opening at least three outlets next year
Sibal announces additional 200,000 engineering seats
NEW DELHI: In a pleasant surprise for students, Human Resource Development Minister Kapil Sibal Thursday announced an increase of almost 200,000 seats in engineering courses in India.
As part of reforms in All India Council for Technical Education ( AICTE )) norms, the minister also announced additional 80,000 seats in management and 2,200 seats in architecture courses.
The norms for land requirement for engineering colleges were also liberalised, with Sibal saying that lesser space will be needed for establishing technical institutes.
While an engineering college in rural India will need 10 acres of land, just 2.5 acres of land will be needed in urban areas.
As part of reforms in All India Council for Technical Education ( AICTE )) norms, the minister also announced additional 80,000 seats in management and 2,200 seats in architecture courses.
The norms for land requirement for engineering colleges were also liberalised, with Sibal saying that lesser space will be needed for establishing technical institutes.
While an engineering college in rural India will need 10 acres of land, just 2.5 acres of land will be needed in urban areas.
FICCI demands delay in implementation of IFRS
NEW DELHI: Industry body FICCI has asked the government to delay implementation of international accounting norms, IFRS, beyond April 2011, saying the deadline is "highly unworkable" and "unfair".
In a representation to the Corporate Affairs Ministry , FICCI has said that the transition should be brought in when companies are better equipped to deal with the new envisaged accounting concepts and standards.
"Industry (should) be provided at least one year's preparatory time from the date when the harmonised, notified and legislated converged accounting standards and other related matters are in place," FICCI said.
It pointed out that at the current juncture, global standards themselves are up for revision.
Listing the changes, FICCI said that financial instruments, like derivatives, loans, and investments, accounting and reporting framework, accounting for income taxes, revenue recognition, and accounting for employee benefits, are undergoing a major revamp.
FICCI noted that the new Companies Bill is pending finalisation, and so is the Draft Tax Code.
Further, it said that there seems to be some thinking on asking companies to prepare dual set of financial statements, one as per erstwhile Indian GAAP and another as per IFRS.
"This would lead to immense confusion and increase the hardship and cost for these companies," it said.
According to the roadmap laid out by the MCA , companies with a networth of over Rs 1,000 crore will have to prepare their account books as per the IFRS by April 2011.
Further, while scheduled commercial banks and urban cooperative banks will adopt it from April 1, 2013, all insurance companies will convert their opening balance sheets with IFRS from April 2012, while large listed non-banking finance companies (NBFCs), will converge their opening books of accounts with IFRS norms from April 1, 2013.
Lakshya Media bags ad rights at Delhi Airport's T3
NEW DELHI: A private media organisation, which owns exclusive advertising rights at airports in Colombo and Hyderabad , has been awarded these rights at the new Terminal-3 at Delhi airport .
Laqshya Media has been granted rights for promotions at T3, which is the eighth largest airport terminal of the world, a company statement said here.
It quoted company CEO Indrajit Sen as saying that the Laqshya Media understood how flyers move through airport networks and the advertising they engage with.
"Having profiled distinct flyer groups to identify mood, mindset, activities, dwell time and media engagement, we will provide advertisers with highly targeted opportunities".
The marketing campaigns will primarily target business travellers and professionals by engaging them at a time and place where they have the time to truly experience the product, Sen said.
T3 has outlets of most of the leading global luxury brands in its 20,000 square feet duty-free area, selling a wide range of items -- from chocolates and confectionery to liquor, tobacco, confectionery, perfumes, cosmetics and destination products.
Laqshya owns exclusive advertising rights at Rajiv Gandhi International Airport in Hyderabad) and the Bandaranaike International Airport at Colombo, the statement added.
Laqshya Media has been granted rights for promotions at T3, which is the eighth largest airport terminal of the world, a company statement said here.
It quoted company CEO Indrajit Sen as saying that the Laqshya Media understood how flyers move through airport networks and the advertising they engage with.
"Having profiled distinct flyer groups to identify mood, mindset, activities, dwell time and media engagement, we will provide advertisers with highly targeted opportunities".
The marketing campaigns will primarily target business travellers and professionals by engaging them at a time and place where they have the time to truly experience the product, Sen said.
T3 has outlets of most of the leading global luxury brands in its 20,000 square feet duty-free area, selling a wide range of items -- from chocolates and confectionery to liquor, tobacco, confectionery, perfumes, cosmetics and destination products.
Laqshya owns exclusive advertising rights at Rajiv Gandhi International Airport in Hyderabad) and the Bandaranaike International Airport at Colombo, the statement added.
BHEL eyes overseas markets for exports
TIRUCHIRAPALLI: PSU power equipment manufacturer BHEL is eyeing overseas markets for exports, a top company official today said.
"BHEL is looking at the markets of South Africa, Zambia, Belarus, Indonesia, Libya and Bangladesh", Executive Director of BHEL Trichy Complex A V Krishnan told reporters here.
"We have participated in the tenders," he said, adding that Indonesia was a big market.
To a query, he said that BHEL was looking at inorganic and organic growth.
"We do not want to enter into any JV with any other company for boiler manufacturing," he said.
Krishnan said that the Trichy complex of BHEL, which manufactures boilers, was eyeing a turnover of Rs 12,765 crore during the current fiscal, and Rs 16,000 crore by 2011-12.
He said that BHEL's Trichy complex was currently undergoing a capital expenditure of Rs 750 crore.
Krishnan said that the third boiler unit would be ready by March 2012, adding that annual capacity would rise to 15,000 MW at Trichy from 10,000 MW at present.
Overall, BHEL's total annual capacity would rise to 20,000 MW by 2012, the balance 5000 MW of which would come from solar, hydel, and nuclear. Besides this, BHEL was also coming up with a new piping plant at Thirumiyam near Trichy and upgrading its steel tube manufacturing plant.
Krishnan said that BHEL was also outsourcing some components to reduce costs and importing non-critical items from China
L&T's subsidiary bags Rs.2,503 crore-worth orders
NEW DELHI: Construction and engineering major Larsen & Toubro's (L&T) subsidiary Electrical and Gulf Projects Operating Company has bagged orders worth Rs.2,503 crore for transmission, substation and railway construction projects during the third quarter of 2010-11.
"Electrical & Gulf Projects Operating Company (E&GP OC) has secured orders aggregating to Rs.2,503 crore from transmission, substation and railway construction projects in the domestic and international markets during the third quarter of 2010-11," the company said in a regulatory filling.
According to the filling, the company secured orders worth Rs.1,516 crore in the domestic markets, which included projects for laying down of transmission lines, manufacturing of electrical equipment used in energy generation and railway construction activity.
The company's international segment bagged Rs.987 crore in the middle east region for seven substation projects and 153 km of transmission line projects.
The company's shares closed at Rs.1,979.05 at the Bombay Stock Exchange (BSE), 0.35 per cent higher than Thursday
After Dabur, Pepsi faces raids in Nepal
KATHMANDU: Four days after Dabur India’s factory in Nepal was raided by anti-corruption watchdogs over allegations of manufacturing irregularities , another Indian multinational’s corporate office and factory in Kathmandu were raided by revenue officials .
Varun Beverages , the bottler of Pepsi and related soft drinks in India and Nepal, and an associate company of India’s RKJ Group chaired by Ravi Jaipuria, was raided Friday by the newly-formed flying squads under the finance ministry that have begun scrutinising corporate houses for evasion of VAT (Value-added Tax), excise duty and other taxes.
Along with Varun, its subsidiary company and the distributor of Budweiser Beer in Nepal, Arctic International, was also raided. However, the raids failed to unearth any incriminating evidence.
“Our factory in Sinamangal and corporate office in Baluwatar were raided Friday,” Surajan De, CEO of Varun, said. “The factory was given a clean chit and is functioning as usual. Though the search at the corporate office continued till late at night, the squad could not find anything incriminatory.”
De said that since raids had started on many other companies, Varun was not taking it as an untoward incident. However, given the recent campaign against Indian multinationals, that led to the raid by the Commission of Investigation of Abuse of Authority on the godown of Dabur Nepal Monday, Indian investors were watching the developments closely to see whether it was a routine move or an attack targeting Indian companies.
Last year, Varun and another of its subsidiary companies, Devyani International, opened the first international fast-food chain outlets in Nepal with the inauguration of Pizza Hut and KFC in the capital. But just a month later, their plans to take the chains to Pokhara city and other locations had to be put on hold after labour unrest fomented by the opposition Maoist party’s trade union.
Varun Beverages , the bottler of Pepsi and related soft drinks in India and Nepal, and an associate company of India’s RKJ Group chaired by Ravi Jaipuria, was raided Friday by the newly-formed flying squads under the finance ministry that have begun scrutinising corporate houses for evasion of VAT (Value-added Tax), excise duty and other taxes.
Along with Varun, its subsidiary company and the distributor of Budweiser Beer in Nepal, Arctic International, was also raided. However, the raids failed to unearth any incriminating evidence.
“Our factory in Sinamangal and corporate office in Baluwatar were raided Friday,” Surajan De, CEO of Varun, said. “The factory was given a clean chit and is functioning as usual. Though the search at the corporate office continued till late at night, the squad could not find anything incriminatory.”
De said that since raids had started on many other companies, Varun was not taking it as an untoward incident. However, given the recent campaign against Indian multinationals, that led to the raid by the Commission of Investigation of Abuse of Authority on the godown of Dabur Nepal Monday, Indian investors were watching the developments closely to see whether it was a routine move or an attack targeting Indian companies.
Last year, Varun and another of its subsidiary companies, Devyani International, opened the first international fast-food chain outlets in Nepal with the inauguration of Pizza Hut and KFC in the capital. But just a month later, their plans to take the chains to Pokhara city and other locations had to be put on hold after labour unrest fomented by the opposition Maoist party’s trade union.
DTH industry to rev up as subscribers rise, costs ease
MUMBAI: After years of depressed growth, the direct-to-home industry is likely to improve over the next two years as costs decline, companies aggressively increase their subscriber base and the market leader nears breakeven.
However, profits at loss-making DTH providers, bogged down by high subscriber acquisition costs, selling and marketing expenses and low revenue per user, might take longer, analysts said.
"Like in a lot of businesses, the first round of economic destruction has happened, the business has bled, but from here on, the industry will take off," IDFC Securities analyst Nikhil Vora said.
Salil Kapoor, chief operating officer at Dish TV, said the Indian DTH industry should have 33 million subscribers by the end of this fiscal and expects it to be the largest globally, overtaking the U.S., much earlier than analysts' projections of 2012.
The historically high subscriber acquisition costs -- cost the DTH provider records for each subscriber -- have stabilised over the last one year.
Subscriber acquisition costs, which were initially as high as 6,000 rupees, have now stabilised at somewhere between 3,000 rupees and 4,000 rupees, Anil Khera, chief executive at Videocon D2H, a unit of Videocon Industries , said.
Subscriber acquisition costs should fall by 20 per cent in the next two years, an analyst, who did not wish to be named, said.
"Subscriber acquisition costs should definitely come down because of stabilisation in price war and reduction in the price of set-top boxes," the analyst added.
Dish TV launched its DTH services in 2005, becoming the first entrant in the Indian market. Tata Sky, Sun TV Network's Sun Direct, Reliance Big TV, Bharti Airtel's Airtel Digital TV and Videocon D2H jumped in later, setting off a price war to gain subscribers in an analog-dominated market.
Prices of set-top boxes, a large chunk of the subscriber acquisition cost, have dropped considerably over the years, especially in markets such as China and Taiwan. Service providers such as Videocon D2H are also manufacturing their own set-top boxes to cut down on costs and avoid import duty.
Additionally, the rupee's appreciation against the dollar is also pushing the cost down. The rupee has appreciated 3.2 per cent against the dollar so far this year.
MUTED ARPUs COULD EDGE UP
Cut-throat competition has so far kept average revenue per user (ARPU) subdued, but going forward DTH companies could see ARPU rising to 225-260 rupees in the next three years from the current 140-150 rupees, Vora said.
Changes in the content sharing agreements between broadcasters and service providers are also helping DTH companies reduce costs to a certain extent.
Earlier, the broadcasters' fee would change depending on the DTH companies' total subscriber pool, but of late, many DTH providers have worked out fixed-pay agreements with broadcasters.
Dish TV, which recently crossed the 9-million-subscriber mark, is leading the way to recovery. The company is aiming at profitability in the coming months and analysts expect the firm to break even in calendar year 2011.
"Others should be able to breakeven by FY13 or FY14 because you need to have more subscribers to breakeven faster," K.R. Choksey analyst Rohit Maheshwari said
However, profits at loss-making DTH providers, bogged down by high subscriber acquisition costs, selling and marketing expenses and low revenue per user, might take longer, analysts said.
"Like in a lot of businesses, the first round of economic destruction has happened, the business has bled, but from here on, the industry will take off," IDFC Securities analyst Nikhil Vora said.
Salil Kapoor, chief operating officer at Dish TV, said the Indian DTH industry should have 33 million subscribers by the end of this fiscal and expects it to be the largest globally, overtaking the U.S., much earlier than analysts' projections of 2012.
The historically high subscriber acquisition costs -- cost the DTH provider records for each subscriber -- have stabilised over the last one year.
Subscriber acquisition costs, which were initially as high as 6,000 rupees, have now stabilised at somewhere between 3,000 rupees and 4,000 rupees, Anil Khera, chief executive at Videocon D2H, a unit of Videocon Industries , said.
Subscriber acquisition costs should fall by 20 per cent in the next two years, an analyst, who did not wish to be named, said.
"Subscriber acquisition costs should definitely come down because of stabilisation in price war and reduction in the price of set-top boxes," the analyst added.
Dish TV launched its DTH services in 2005, becoming the first entrant in the Indian market. Tata Sky, Sun TV Network's Sun Direct, Reliance Big TV, Bharti Airtel's Airtel Digital TV and Videocon D2H jumped in later, setting off a price war to gain subscribers in an analog-dominated market.
Prices of set-top boxes, a large chunk of the subscriber acquisition cost, have dropped considerably over the years, especially in markets such as China and Taiwan. Service providers such as Videocon D2H are also manufacturing their own set-top boxes to cut down on costs and avoid import duty.
Additionally, the rupee's appreciation against the dollar is also pushing the cost down. The rupee has appreciated 3.2 per cent against the dollar so far this year.
MUTED ARPUs COULD EDGE UP
Cut-throat competition has so far kept average revenue per user (ARPU) subdued, but going forward DTH companies could see ARPU rising to 225-260 rupees in the next three years from the current 140-150 rupees, Vora said.
Changes in the content sharing agreements between broadcasters and service providers are also helping DTH companies reduce costs to a certain extent.
Earlier, the broadcasters' fee would change depending on the DTH companies' total subscriber pool, but of late, many DTH providers have worked out fixed-pay agreements with broadcasters.
Dish TV, which recently crossed the 9-million-subscriber mark, is leading the way to recovery. The company is aiming at profitability in the coming months and analysts expect the firm to break even in calendar year 2011.
"Others should be able to breakeven by FY13 or FY14 because you need to have more subscribers to breakeven faster," K.R. Choksey analyst Rohit Maheshwari said
Sony India eyes 54% sales growth to Rs 5700 cr this fiscal
NEW DELHI: Consumer electronics giant Sony India today said it expects to witness a 54 per cent jump in sales to Rs 5,700 crore this fiscal on the back of its enhanced distribution network, aggressive marketing campaign and newly launched products.
The company said it clocked sales worth Rs 2,600 crore in the first half of the 2010-11 financial year, a 46 per cent increase compared to the same period last fiscal.
"Sony aims to clock a turnover of Rs 5,700 crore this financial year, which would be a 54 per cent increase over the last fiscal," the company said in a statement. Sony India had reported sales worth Rs 3,700 crore last fiscal.
The key strategic pillars of growth include sales channel expansion, service operation enhancement, aggressive brand promotion and introduction of an innovative product line-up, it said.
The company said a major chunk of its overall sales revenue during the first six months of the current fiscal came from its 'Bravia' range of televisions and 'Vaio' computers and laptops. It also witnessed a 54 per cent surge in sales during the festive season this year vis-a-vis the year-ago period.
"All key categories of Sony have achieved very aggressive growth figures, with 'Bravia' registering 65 per cent growth from corresponding period last year, 'Vaio' growing by 160 per cent and digital imaging ('Cyber-shot' and 'Handycam') by 20 per cent," the firm said.
It also attributed the robust growth to expansion of its distribution network to 4,000 channels in the first half of FY'11, compared to 3,000 at the end of the previous financial year.
"India is amongst the top 10 priority markets for Sony and we eagerly look forward to expand our operations here... We aim to attain No 1 position in terms of market share, brand value and customer satisfaction in the Indian market," Sony India Managing Director Masaru Tamagawa said.
Sony also undertook an aggressive advertising campaign this year, which featured Bollywood superstar Kareena Kapoor in its 'Go Vivid' campaign to promote the Vaio range of laptops and computers and Deepika Padukone for the 'Superzoom' campaign promoting its Cyber-shot range of digital cameras
NTC raises Rs 1.46 bn via land auction
MUMBAI: India's state-run National Textile Corporation has raised 1.46 billion rupees ($32.46 million) by selling two of its surplus mill lands in the western Indian city of Gujarat via e-auctions.
NTC had fixed a reserve price of 687.4 million rupees for both the assets.
Gujarat-based firm Ahmedabad Advance Mills Ltd paid 1.18 billion rupees for a 33,222 sq meters plot while Lok Prakashan paid 412.7 million rupees for a 61,040 sq meters plot, the firm said in a statement to the exchange.
It has so far raised 19.79 billion rupees via two auctions earlier.
NTC, which has about 1,300 acres of land in various cities across India, is modernising 24 mills at a total estimated cost of 91.02 billion rupees.
An improvement in demand for textile products and apparel has prompted the federal government to spend more on reviving and modernising dormant textile mills
NTC had fixed a reserve price of 687.4 million rupees for both the assets.
Gujarat-based firm Ahmedabad Advance Mills Ltd paid 1.18 billion rupees for a 33,222 sq meters plot while Lok Prakashan paid 412.7 million rupees for a 61,040 sq meters plot, the firm said in a statement to the exchange.
It has so far raised 19.79 billion rupees via two auctions earlier.
NTC, which has about 1,300 acres of land in various cities across India, is modernising 24 mills at a total estimated cost of 91.02 billion rupees.
An improvement in demand for textile products and apparel has prompted the federal government to spend more on reviving and modernising dormant textile mills
After Honda split, Munjals to focus on exports
NEW DELHI: Hero Honda managing director Pawan Kumar Munjal has told vendors that exports will get sharp focus after the formal split with Japanese partner Honda Motor Company. “Work hard. We are planning to build a new brand and market it internationally," Munjal told vendors on Tuesday.
Exports account for a meagre 2.6% of Hero Honda's production of 34.48 lakh units as the 26-yearold joint venture put restriction on entry into key overseas markets. The Hero group will compete with partner Honda in global markets once the definitive pact to dissolve the partnership is signed in four weeks. A Hero Honda spokesperson declined comment.
Executives from key suppliers such as Rico Auto, Motherson Sumi, Sandhar Technologies, Minda Industries , Sunbeam Auto, Lumax Industries , Omax, Excide Batteries, Sriram Pistons, MRF Tyres, and Falcon Tyres attended the first vendors' conference after the announcement of split. The Munjals will buy 26% stake from Honda, taking their total stake in Hero Honda to 52%.
The Hero Group will export bikes and scooters under its new global 'Hero' brand in places such as Latin America, Africa, East Europe and Asia. It now sells in countries such as Nepal, Bhutan, Bangladesh, and Myanmar.
"The company is yet to harvest its full potential of 5.4 million capacity. Hero Honda aims to be a major players in exports," said a Delhi-based supplier.
"Exports to emerging markets like Africa and Latin America are more lucrative in terms of margins, but would be a challenge to find space in the crowded South East Asia which is one of the largest block in terms of sales. Brand visibility and product positioning would be a challenge for the Hero Group," Mahantesh Sabarad, a Mumbai-based analyst at Fortune Equity said.
Exports account for a meagre 2.6% of Hero Honda's production of 34.48 lakh units as the 26-yearold joint venture put restriction on entry into key overseas markets. The Hero group will compete with partner Honda in global markets once the definitive pact to dissolve the partnership is signed in four weeks. A Hero Honda spokesperson declined comment.
Executives from key suppliers such as Rico Auto, Motherson Sumi, Sandhar Technologies, Minda Industries , Sunbeam Auto, Lumax Industries , Omax, Excide Batteries, Sriram Pistons, MRF Tyres, and Falcon Tyres attended the first vendors' conference after the announcement of split. The Munjals will buy 26% stake from Honda, taking their total stake in Hero Honda to 52%.
The Hero Group will export bikes and scooters under its new global 'Hero' brand in places such as Latin America, Africa, East Europe and Asia. It now sells in countries such as Nepal, Bhutan, Bangladesh, and Myanmar.
"The company is yet to harvest its full potential of 5.4 million capacity. Hero Honda aims to be a major players in exports," said a Delhi-based supplier.
"Exports to emerging markets like Africa and Latin America are more lucrative in terms of margins, but would be a challenge to find space in the crowded South East Asia which is one of the largest block in terms of sales. Brand visibility and product positioning would be a challenge for the Hero Group," Mahantesh Sabarad, a Mumbai-based analyst at Fortune Equity said.
TVS Motors December sales up 42% y-o-y
MUMBAI: TVS Motor Co Ltd , India's No. 3 two-wheeler maker, said on Saturday total sales for December rose 42 percent to 171,790 units.
Total two-wheeler sales alone for the month stood at 168,359 units from 119,701 units a year ago, it said
Total two-wheeler sales alone for the month stood at 168,359 units from 119,701 units a year ago, it said
HMSI sales up 20 pc in December
NEW DELHI: Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) today reported 20 per cent growth in sales at 1,40,642 units in December 2010 over the same month previous year.
In a statement, HMSI said the overall growth during the month stood at 20 per cent in December 2010 and the motorcycle segment contributed the most.
In the domestic market, the company sold 53,821 units of motorcycles, 76,263 units scooters.
The exports contributed 10,558 units in December 2010, it added
In a statement, HMSI said the overall growth during the month stood at 20 per cent in December 2010 and the motorcycle segment contributed the most.
In the domestic market, the company sold 53,821 units of motorcycles, 76,263 units scooters.
The exports contributed 10,558 units in December 2010, it added
SEBI officials to question Puri in Citibank fraud
GURGAON: A two-member team of capital market regulator Securities and Exchange Board of India (SEBI) has arrived here to question Shivraj Puri , the mastermind behind the Rs 300 crore Citibank fraud .
Officials from investigation department of SEBI will question the accused as the fund raised from High Networth Individual (HNIs) were diverted into the stock market, said Gurgaon Police Commissioner S S Deswal.
Puri, Relationship Manager employed with Citibank's Gurgaon branch allegedly collected fund from HNIs and corporates by showing a forged notification of SEBI to lure them into investments on promise of unusually high returns.
Among other things the SEBI team may try to figure whether the fund was invested in share price rigging or manipulation, sources said.
Meanwhile, Gurgaon Police yesterday questioned senior officials of brokerage firms Religare and Bonanza through which diverted money was invested into the stock market.
Religare Securities said that Puri has been a client since December 2009.
As on October 15, 2010, there is balance of Rs. 0.30 in his account, Religare said, adding, there has been no trading transaction in his account since October 1 2010.
Since the investigating agencies are already seized of the matter Religare is in the process of providing the details as are required by investigating agencies, it said.
According to Police, Rs 200 crore belonged to corporates including Hero Group and Rs 100 crore to individuals.
Brijmohan Lal Munjal-led Hero Group meanwhile admitted that its exposure to the fraud is to the tune of Rs 28.75 crore and it was done through its entities.
The fraud was detected when there was default in payments in later part of this year. The number of investors could be 18 to 20 including corporates and HNIs who are both local.
Officials from investigation department of SEBI will question the accused as the fund raised from High Networth Individual (HNIs) were diverted into the stock market, said Gurgaon Police Commissioner S S Deswal.
Puri, Relationship Manager employed with Citibank's Gurgaon branch allegedly collected fund from HNIs and corporates by showing a forged notification of SEBI to lure them into investments on promise of unusually high returns.
Among other things the SEBI team may try to figure whether the fund was invested in share price rigging or manipulation, sources said.
Meanwhile, Gurgaon Police yesterday questioned senior officials of brokerage firms Religare and Bonanza through which diverted money was invested into the stock market.
Religare Securities said that Puri has been a client since December 2009.
As on October 15, 2010, there is balance of Rs. 0.30 in his account, Religare said, adding, there has been no trading transaction in his account since October 1 2010.
Since the investigating agencies are already seized of the matter Religare is in the process of providing the details as are required by investigating agencies, it said.
According to Police, Rs 200 crore belonged to corporates including Hero Group and Rs 100 crore to individuals.
Brijmohan Lal Munjal-led Hero Group meanwhile admitted that its exposure to the fraud is to the tune of Rs 28.75 crore and it was done through its entities.
The fraud was detected when there was default in payments in later part of this year. The number of investors could be 18 to 20 including corporates and HNIs who are both local.
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