Japanese consumer electronics giant Panasonic Corp will slash 40,000 jobs over the next two years in a bid to pare costs and keep up with ever-harsher competition from Asian rivals, a source said.
The company, which employs about 380,000 people, will incur more than 100 billion yen ($1.22 billion) in expenses this year related to the job cuts and a reorganisation of production facilities, the Nikkei newspaper reported earlier.
Once unrivalled, Japan's consumer electronic firms are facing increasing competition from Korean and Chinese producers in particular. Panasonic is seeking to shift its focus to environmental and energy-related businesses such as rechargeable batteries in order to duck competition fromSamsung Electronics, LG Electronics and others in consumer technology.
As part of that strategy, it announced last year it would make Panasonic Electric Works and Sanyo Electric Co wholly owned units last year, absorbing a combined 160,000 workers, the Nikkei reported.
Panasonic is now seeking to shed staff in overlapping businesses, particularly abroad, it added. The units make a wide range of products including rechargeable batteries, factory robots, electronic components, lighting and solar panels.
Panasonic announces its earnings for the year ended on March 31 at 0600 GMT on Thursday. President Fumio Ohtsubo will speak to the media about the company's future direction from 0810 GMT.
Success in my Habit
Friday, April 29, 2011
HP bags $2.5bn NASA contract
Technology company Hewlett-Packard says it has been awarded a multi-year contract worth up to $2.5 billion to provide technology services to NASA.
Hewlett-Packard Co said the contract has a four-year base period with two additional three-year option periods.
The deal is the latest sign of an economic recovery and a pickup in government spending.
HP says it will provide personal computing services so that NASA employees can collaborate more easily in a secure computing environment.
The company says it will provide computing services and devices to more than 60,000 users as part of the deal. It will modernize the space agency's computer systems used by employees.
Hewlett-Packard Co said the contract has a four-year base period with two additional three-year option periods.
The deal is the latest sign of an economic recovery and a pickup in government spending.
HP says it will provide personal computing services so that NASA employees can collaborate more easily in a secure computing environment.
The company says it will provide computing services and devices to more than 60,000 users as part of the deal. It will modernize the space agency's computer systems used by employees.
Infosys staff want founders to stay, want Nandan Nilekani back
A near majority, 50%, think that the company is losing ground to TCS , while 29% attribute poor performance to poor leadership.
Employees of Infosys, which is being criticised for giving CEO positions to founders rather than professionals, have voiced strong support for the practice, an exclusive opinion poll commissioned by ET has found.
The poll, conducted among 201 Infosys employees in Bangalore by market research firm AZ Research , has found that more than a simple majority of employees (61%) want founders to become CEOs and think that it is a perfect arrangement.
About 75% of those surveyed think that Nandan Nilekani, one of the founders and former CEO, who quit two years ago to join the government, should come back as the CEO. A big majority, (74%), feels that Narayana Murthy , the iconic chairman, who is set to step down from his executive role in August this year, should continue to play an active role and not retire from the company.
But the poll, which was conducted over Wednesday and Thursday, also found a strong level of concern over the company's financial performance and its ability to keep up with competition. A near majority, 50%, think that the company is losing ground to TCS. About 29% attribute the poor performance to poor leadership, while 43% blame lack of aggression.
Nearly four in ten employees admitted that Infosys lacked the imagination to fire up its numbers and that Infosys had lost some of its past glory under Kris Gopalakrishnan , the current CEO of Infosys who is widely believed to succeed as chairman or vice-chairman.
Support for Mohandas Pai , the former HR director, whose abrupt resignation earlier this month and caustic comments about founders rotating the CEO role among themselves triggered a controversy, is also quite high.
Employees of Infosys, which is being criticised for giving CEO positions to founders rather than professionals, have voiced strong support for the practice, an exclusive opinion poll commissioned by ET has found.
The poll, conducted among 201 Infosys employees in Bangalore by market research firm AZ Research , has found that more than a simple majority of employees (61%) want founders to become CEOs and think that it is a perfect arrangement.
About 75% of those surveyed think that Nandan Nilekani, one of the founders and former CEO, who quit two years ago to join the government, should come back as the CEO. A big majority, (74%), feels that Narayana Murthy , the iconic chairman, who is set to step down from his executive role in August this year, should continue to play an active role and not retire from the company.
But the poll, which was conducted over Wednesday and Thursday, also found a strong level of concern over the company's financial performance and its ability to keep up with competition. A near majority, 50%, think that the company is losing ground to TCS. About 29% attribute the poor performance to poor leadership, while 43% blame lack of aggression.
Nearly four in ten employees admitted that Infosys lacked the imagination to fire up its numbers and that Infosys had lost some of its past glory under Kris Gopalakrishnan , the current CEO of Infosys who is widely believed to succeed as chairman or vice-chairman.
Support for Mohandas Pai , the former HR director, whose abrupt resignation earlier this month and caustic comments about founders rotating the CEO role among themselves triggered a controversy, is also quite high.
Mahindra Satyam to hire 18,000 employees in FY 2012
IT firm Mahindra Satyam said it plans to hire about 18,000 people during this fiscal.
'We have plans of hiring about 18,000 people this year (FY'12). Over 5,000 are from campuses and the rest are from lateral hiring or recruitment of experienced hands,' Mahindra Satyam Head Recruitment and Media Sridhar Maturi told PTI.
At the end of the third quarter (October-December period), Mahindra Satyam's headcount stood at 28,832, an increase of 764 personnel from 28,068 employees on September 30, 2010.
Maturi further added, 'The campus hiring will be predominantly in India and the lateral hiring is from across the world.'
The company has its development and delivery centres in the US, Canada, Brazil, the UK, Hungary,Egypt, UAE, India, China, Malaysia, Singapore and Australia by which the company serves numerous clients, including several Fortune 500 companies.
Mahindra Satyam, formerly Satyam Computer Services , in September last year had announced its first audited financial results for 2009-10 after its founder B Ramalinga Raju admitted to multi-crore accounting fraud in January 2009.
'We have plans of hiring about 18,000 people this year (FY'12). Over 5,000 are from campuses and the rest are from lateral hiring or recruitment of experienced hands,' Mahindra Satyam Head Recruitment and Media Sridhar Maturi told PTI.
At the end of the third quarter (October-December period), Mahindra Satyam's headcount stood at 28,832, an increase of 764 personnel from 28,068 employees on September 30, 2010.
Maturi further added, 'The campus hiring will be predominantly in India and the lateral hiring is from across the world.'
The company has its development and delivery centres in the US, Canada, Brazil, the UK, Hungary,Egypt, UAE, India, China, Malaysia, Singapore and Australia by which the company serves numerous clients, including several Fortune 500 companies.
Mahindra Satyam, formerly Satyam Computer Services , in September last year had announced its first audited financial results for 2009-10 after its founder B Ramalinga Raju admitted to multi-crore accounting fraud in January 2009.
Thursday, April 21, 2011
TCS Q4 net profit surges 31% on higher IT spends
Mumbai, Apr 21: An increase in IT-spends by clients across key business segments, coupled with favourable currency movements, has propelled Tata Consultancy Services to report a 31.1 per cent surge in net profit for the fourth quarter ended March 31, 2010.
Net profits for the quarter under review stood at Rs 2,623 crore, as against Rs 2,001 crore recorded in the same quarter a year ago. Revenues grew by 31.3 per cent to cross the Rs 10,000-crore mark for the first time (in a quarter) at Rs 10,157 crore. Revenues in the corresponding period last year stood at Rs 7,738 crore.
“TCS has developed a reputation for superior execution and that is why it is seeing traction with customers. The company has managed to drive processes that insulate the quality of services rendered to clients from vagaries such as attrition, technology changes etc,” said Mr Vikash Jain, Partner of outsourcing advisory firm Everest Group.
The country's largest software exporter added 39 new customers in the quarter gone by. In the last two quarters, TCS has been successful in pushing customers to increase the pricing of both new and existing IT contracts, said Mr N. Chandrasekaran, Managing Director and Chief Executive Officer.
The deal closures have come across verticals of financial services, retail, hi-tech amongst others. A good chunk of the IT spends, both from new and existing customers, is coming from the ‘discretionary' budgets of clients, said Mr Chandrasekaran.
(Discretionary spending is done by the CIO, or IT decision maker, at his discretion – and this falls outside the annual IT budget.)
In constant currency terms, the US market grew by 31.3 per cent for TCS. Its bread-and-butter financial services business growth was in line with the company growth rate.
TCS' numbers were aided by the Indian rupee which had depreciated against the US dollar and other global currencies in the fourth quarter. The forex environment had a positive impact of Rs 120 crore on TCS' topline, said Mr S. Mahalingam, Executive Director and Chief Financial Officer.
All these factors helped the company maintain its operating profit margins at 28.3 per cent. Since the company has announced plans to give wage hikes to all its staffers, analysts feel TCS' margins will come under pressure in the current quarter.
However, Mr Mahalingam is confident that the current margin levels could be maintained over a ‘period of time'. Volume growth, at 2.9 per cent, was lower compared to the last few quarters.
For fiscal 2012, TCS – which counts bellwethers like Citigroup, General Electric and British Airways as clients – is confident of maintaining the growth momentum.
“A poll that we conducted with our customers shows that their IT spend this year is going to be higher than last year. Moreover, we are chasing more deals this time than we were last year around the same time,” said Mr Chandrasekaran.
For the full year ended March 31, 2011, TCS' net profit grew by 29.9 per cent to Rs 9,068 crore (Rs 7,001crore) while revenues grew 24.3 per cent to Rs 37,325 crore (Rs 30,029 crore)
TCS will give a total dividend of Rs 14 per share, including a proposed final dividend of Rs 8.
The company scrip was down by over 2 per cent to close at Rs 1,191.65 on the Bombay Stock Exchange on Thursday.
Net profits for the quarter under review stood at Rs 2,623 crore, as against Rs 2,001 crore recorded in the same quarter a year ago. Revenues grew by 31.3 per cent to cross the Rs 10,000-crore mark for the first time (in a quarter) at Rs 10,157 crore. Revenues in the corresponding period last year stood at Rs 7,738 crore.
“TCS has developed a reputation for superior execution and that is why it is seeing traction with customers. The company has managed to drive processes that insulate the quality of services rendered to clients from vagaries such as attrition, technology changes etc,” said Mr Vikash Jain, Partner of outsourcing advisory firm Everest Group.
The country's largest software exporter added 39 new customers in the quarter gone by. In the last two quarters, TCS has been successful in pushing customers to increase the pricing of both new and existing IT contracts, said Mr N. Chandrasekaran, Managing Director and Chief Executive Officer.
The deal closures have come across verticals of financial services, retail, hi-tech amongst others. A good chunk of the IT spends, both from new and existing customers, is coming from the ‘discretionary' budgets of clients, said Mr Chandrasekaran.
(Discretionary spending is done by the CIO, or IT decision maker, at his discretion – and this falls outside the annual IT budget.)
In constant currency terms, the US market grew by 31.3 per cent for TCS. Its bread-and-butter financial services business growth was in line with the company growth rate.
TCS' numbers were aided by the Indian rupee which had depreciated against the US dollar and other global currencies in the fourth quarter. The forex environment had a positive impact of Rs 120 crore on TCS' topline, said Mr S. Mahalingam, Executive Director and Chief Financial Officer.
All these factors helped the company maintain its operating profit margins at 28.3 per cent. Since the company has announced plans to give wage hikes to all its staffers, analysts feel TCS' margins will come under pressure in the current quarter.
However, Mr Mahalingam is confident that the current margin levels could be maintained over a ‘period of time'. Volume growth, at 2.9 per cent, was lower compared to the last few quarters.
For fiscal 2012, TCS – which counts bellwethers like Citigroup, General Electric and British Airways as clients – is confident of maintaining the growth momentum.
“A poll that we conducted with our customers shows that their IT spend this year is going to be higher than last year. Moreover, we are chasing more deals this time than we were last year around the same time,” said Mr Chandrasekaran.
For the full year ended March 31, 2011, TCS' net profit grew by 29.9 per cent to Rs 9,068 crore (Rs 7,001crore) while revenues grew 24.3 per cent to Rs 37,325 crore (Rs 30,029 crore)
TCS will give a total dividend of Rs 14 per share, including a proposed final dividend of Rs 8.
The company scrip was down by over 2 per cent to close at Rs 1,191.65 on the Bombay Stock Exchange on Thursday.
Reliance Industries' record profit challenges ONGC's top rank
NEW DELHI: Billionaire Mukesh Ambani-led Reliance Industries today came close to challenging PSU giant ONGC's position as the country's most profitable company, with a record net profit of Rs 20,211 crore for the fiscal 2010-11.
RIL's consolidated net profit for the fiscal ended March 31, 2011, grew by over 27 per cent to Rs 20,211 crore.
The company had recorded profit of Rs 15,898 crore in the previous fiscal 2009-10, making it second most profitable company after ONGC.
Oil and Natural Gas Corp (ONGC), the nation's largest oil and gas explorer, had recorded net profit of Rs 16,767.55 crore in 2009-10. The PSU major is yet to announce its figures for the fiscal 2010-11.
In the first nine months of 2010-11 fiscal, ONGC has reported a net profit of Rs 16,133.13 crore.
Analysts expect that the full-year profits of the two companies could be very close to each other and it would be interesting to see whose figures are higher, although not by any big margin.
They said that RIL's figures for the last quarter would have been much higher, but for a decline in the production from its main gas field KG-D6.
Commenting on the results, RIL Chairman and MD Mukesh Ambani said: "Reliance had a record year with strong financial and operating performance. Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings."
"We are fully geared to participate in India's growth and continued global recovery in the coming years. Our committed investments in core business and new initiatives are expected to result in sustained earnings growth," he added.
In the league of five most profitable companies, ONGC and RIL are followed by Indian Oil (Rs 10,220 crore), Bharti Airtel (Rs 9,426 crore) and SBI (Rs 9,166 crore), based on their comparable latest available fiscal year results.
In terms of turnover, RIL is ranked second after Indian Oil and is followed by BPCL, HPCL, SBI and ONGC.
RIL's consolidated net profit for the fiscal ended March 31, 2011, grew by over 27 per cent to Rs 20,211 crore.
The company had recorded profit of Rs 15,898 crore in the previous fiscal 2009-10, making it second most profitable company after ONGC.
Oil and Natural Gas Corp (ONGC), the nation's largest oil and gas explorer, had recorded net profit of Rs 16,767.55 crore in 2009-10. The PSU major is yet to announce its figures for the fiscal 2010-11.
In the first nine months of 2010-11 fiscal, ONGC has reported a net profit of Rs 16,133.13 crore.
Analysts expect that the full-year profits of the two companies could be very close to each other and it would be interesting to see whose figures are higher, although not by any big margin.
They said that RIL's figures for the last quarter would have been much higher, but for a decline in the production from its main gas field KG-D6.
Commenting on the results, RIL Chairman and MD Mukesh Ambani said: "Reliance had a record year with strong financial and operating performance. Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings."
"We are fully geared to participate in India's growth and continued global recovery in the coming years. Our committed investments in core business and new initiatives are expected to result in sustained earnings growth," he added.
In the league of five most profitable companies, ONGC and RIL are followed by Indian Oil (Rs 10,220 crore), Bharti Airtel (Rs 9,426 crore) and SBI (Rs 9,166 crore), based on their comparable latest available fiscal year results.
In terms of turnover, RIL is ranked second after Indian Oil and is followed by BPCL, HPCL, SBI and ONGC.
Refining margin, petrochem biz boost Reliance's Q4 net
Mumbai, Apr 21:
Improved gross refining margin – the highest in the last eight quarters – and increased profits from its petrochemical's business has led to a 14 per cent rise in Reliance Industries Ltd's (RIL) net profit for the fourth quarter of fiscal 2011.
Net profit for the quarter ended March 31, 2010 stood at Rs 5,376 crore (Rs 4,710 crore).
RIL's turnover for the quarter grew by 25 per cent to Rs 75,238 crore, from Rs 60,267 crore in the corresponding quarter last year.
“Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings,” said Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, in a statement from the company.
Exports during the fiscal 2011 grew by 33 per cent to Rs 1,46,667 crore (Rs 1,10,176 crore).
Refining segment
For the quarter, RIL's gross refining margin (GRM) stood at $9.2 per barrel as against $7.5 per barrel in the same quarter last year. Revenues in the refining and marketing segment for the fourth quarter stood at Rs 62,704 crore (Rs 51,250 crore), up 22 per cent.
Earnings before interest and tax from this segment grew 26 per cent to Rs 2,509 crore; EBIT for the fiscal grew 53 per cent to Rs 9,172 crore.
The company processed 16.7 million tonnes of crude oil reflecting a utilisation rate of more than 100 per cent.
GRM for the 2010-11 fiscal stood at $8.4/barrel as against $6.6/barrel in the previous year. The company processed 66.7 million tonnes of crude during the fiscal which it said is the highest in its history.
Oil and Gas E&P segment
The Oil and Gas (Exploration and Production) segment revenues dipped by 5 per cent during the quarter at Rs 4,104 crore (Rs 4,318 crore). For the full fiscal, segment revenues were up 36 per cent at Rs 17,250 crore.
Crude oil and gas production from KG-D6 in the fiscal stood at 8 million barrels and 720 billion cubic feet, a growth of 98 per cent and 42 per cent respectively. During the fiscal, RIL achieved sales of 20.2 billion cubic meters.
Crude oil produced from the block was sold to domestic refineries and achieved an average realisation of $85/barrel. RIL did not provide the quarterly gas production figures for KG-D6.
Petrochemicals
Fourth quarter revenue in the petrochemicals segment was up 18 per cent, at Rs 18,194 crore (Rs 15,448 crore). Full year revenue for the segment stood at Rs 63,155 crore (Rs 55,251 crore), a growth of 14 per cent.
“Performance of the segment reflects the strong demand across the petrochemical range during the quarter,” said the company in its statement.
The company announced a dividend of Rs 8 per fully paid up equity share of Rs 10 each, aggregating to Rs 2,772 crore. Its shares closed 1.39 per cent higher on BSE at Rs 1,039.95 on Thursday; the results were announced after the stock markets closed.
Improved gross refining margin – the highest in the last eight quarters – and increased profits from its petrochemical's business has led to a 14 per cent rise in Reliance Industries Ltd's (RIL) net profit for the fourth quarter of fiscal 2011.
Net profit for the quarter ended March 31, 2010 stood at Rs 5,376 crore (Rs 4,710 crore).
RIL's turnover for the quarter grew by 25 per cent to Rs 75,238 crore, from Rs 60,267 crore in the corresponding quarter last year.
“Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings,” said Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, in a statement from the company.
Exports during the fiscal 2011 grew by 33 per cent to Rs 1,46,667 crore (Rs 1,10,176 crore).
Refining segment
For the quarter, RIL's gross refining margin (GRM) stood at $9.2 per barrel as against $7.5 per barrel in the same quarter last year. Revenues in the refining and marketing segment for the fourth quarter stood at Rs 62,704 crore (Rs 51,250 crore), up 22 per cent.
Earnings before interest and tax from this segment grew 26 per cent to Rs 2,509 crore; EBIT for the fiscal grew 53 per cent to Rs 9,172 crore.
The company processed 16.7 million tonnes of crude oil reflecting a utilisation rate of more than 100 per cent.
GRM for the 2010-11 fiscal stood at $8.4/barrel as against $6.6/barrel in the previous year. The company processed 66.7 million tonnes of crude during the fiscal which it said is the highest in its history.
Oil and Gas E&P segment
The Oil and Gas (Exploration and Production) segment revenues dipped by 5 per cent during the quarter at Rs 4,104 crore (Rs 4,318 crore). For the full fiscal, segment revenues were up 36 per cent at Rs 17,250 crore.
Crude oil and gas production from KG-D6 in the fiscal stood at 8 million barrels and 720 billion cubic feet, a growth of 98 per cent and 42 per cent respectively. During the fiscal, RIL achieved sales of 20.2 billion cubic meters.
Crude oil produced from the block was sold to domestic refineries and achieved an average realisation of $85/barrel. RIL did not provide the quarterly gas production figures for KG-D6.
Petrochemicals
Fourth quarter revenue in the petrochemicals segment was up 18 per cent, at Rs 18,194 crore (Rs 15,448 crore). Full year revenue for the segment stood at Rs 63,155 crore (Rs 55,251 crore), a growth of 14 per cent.
“Performance of the segment reflects the strong demand across the petrochemical range during the quarter,” said the company in its statement.
The company announced a dividend of Rs 8 per fully paid up equity share of Rs 10 each, aggregating to Rs 2,772 crore. Its shares closed 1.39 per cent higher on BSE at Rs 1,039.95 on Thursday; the results were announced after the stock markets closed.
Wednesday, April 20, 2011
Renault-Nissan Chennai plant gets new chief
Mumbai, April 20: Renault-Nissan Automotive India (RNAIPL) announced on Wednesday the appointment of Mr Kou Kimura as the new CEO & Managing Director of its manufacturing facility at Oragadam, near Chennai. With effect from April 1, Mr Kimura will replace Mr Akira Sakurai as the head of the plant. Mr Kimura has been promoted from his previous position of SVP – Plant Operations of the Oragadam facility, which he held since 2008.
Mr Kimura is a Graduate in Mechanical Engineering from Touhoku University, Japan. He started his career in Nissan's Oppama Plant in Japan in 1977. Prior coming to India, Mr Kimura has held various positions in Nissan headquarters in Japan and in the UK. Mr Marc Nassif, MD & Country General Manager for Renault in India, continues in his role as Deputy CEO of RNAIPL.
Mr Kimura is a Graduate in Mechanical Engineering from Touhoku University, Japan. He started his career in Nissan's Oppama Plant in Japan in 1977. Prior coming to India, Mr Kimura has held various positions in Nissan headquarters in Japan and in the UK. Mr Marc Nassif, MD & Country General Manager for Renault in India, continues in his role as Deputy CEO of RNAIPL.
Muthoot IPO fully subscribed
Mumbai, Apr 20: The initial public offer (IPO) of country’s largest gold financing company, Muthoot Finance, got over subscribed 7.09 times till 1500 hrs on the third day of issue on Wednesday.
The company’s IPO received bids worth 31.04 crore equity shares as against 4.3 crore shares on offer, as per a data available with the National Stock Exchange till 1500 hrs.
Muthoot Finance has entered the capital market with a price band of Rs 160—175 a share for the IPO of 5.15 crore equity shares.
At the lower end of the price band, the company will raise Rs 824 crore, while on the upper end it will mop up Rs 901.25 crore.
The bid, which opened for subscription on April 18 will close today for QIB bidders and tomorrow for retail and non-institutional investors.
The IPO proceeds will be utilised to augment the company’s capital base for meeting future capital needs, for funding of loans and for general corporate purposes.
ICICI Securities, Kotak Mahindra Capital Co are the book running lead managers to the issue, while HDFC Bank is the co-book running lead manager.
Kerala based Muthoot Finance is a non-deposit taking, non-banking finance company.
The company’s IPO received bids worth 31.04 crore equity shares as against 4.3 crore shares on offer, as per a data available with the National Stock Exchange till 1500 hrs.
Muthoot Finance has entered the capital market with a price band of Rs 160—175 a share for the IPO of 5.15 crore equity shares.
At the lower end of the price band, the company will raise Rs 824 crore, while on the upper end it will mop up Rs 901.25 crore.
The bid, which opened for subscription on April 18 will close today for QIB bidders and tomorrow for retail and non-institutional investors.
The IPO proceeds will be utilised to augment the company’s capital base for meeting future capital needs, for funding of loans and for general corporate purposes.
ICICI Securities, Kotak Mahindra Capital Co are the book running lead managers to the issue, while HDFC Bank is the co-book running lead manager.
Kerala based Muthoot Finance is a non-deposit taking, non-banking finance company.
Maruti trains 98,000 underprivileged people in 2 years
New Delhi, Apr 20: Maruti Suzuki India said on Wednesday that it has given training to 98,000 people from the underprivileged section of the society in the last two years.
Under its National Road Safety Mission, launched in December, 2008, the company has trained a total of 3.58 lakh people so far, Maruti Suzuki India (MSI) said in a statement.
“Of these, over 98,000 people are from the underprivileged section of society, who are keen to take driving as a profession,” it added.
The company had set a target to train at least five lakh drivers over a three year period under the mission, out of which over one lakh would be from economically weaker section.
MSI currently operates 4 Institute of Driving Training & Research (IDTR) and 166 Maruti Driving Schools in the country.
The company’s training initiatives have benefited about 7 lakh people so far. To promote safe driving, the company today announced a driving competition in the 18—30 years of age group.
The contest — Young Driver 2011 — will be held at 63 Maruti Driving Schools across 34 cities in the country, the statement said.
“Though we are trying to educate different sections of the society through programmes and infrastructure like IDTRs and Maruti Driving Schools, we believe that the young population of the country holds the key to road safety promotion.
“Therefore, Maruti Suzuki has chosen the youth of India to be its brand ambassadors for this cause,” MSI Chief General Manager (Marketing), Mr Shashank Srivastava, said.
The preliminary rounds of the competition will be held at different regional centres. The final is scheduled in IDTR, Delhi, and the winner will be gifted MSI’s small car A—Star.
Under its National Road Safety Mission, launched in December, 2008, the company has trained a total of 3.58 lakh people so far, Maruti Suzuki India (MSI) said in a statement.
“Of these, over 98,000 people are from the underprivileged section of society, who are keen to take driving as a profession,” it added.
The company had set a target to train at least five lakh drivers over a three year period under the mission, out of which over one lakh would be from economically weaker section.
MSI currently operates 4 Institute of Driving Training & Research (IDTR) and 166 Maruti Driving Schools in the country.
The company’s training initiatives have benefited about 7 lakh people so far. To promote safe driving, the company today announced a driving competition in the 18—30 years of age group.
The contest — Young Driver 2011 — will be held at 63 Maruti Driving Schools across 34 cities in the country, the statement said.
“Though we are trying to educate different sections of the society through programmes and infrastructure like IDTRs and Maruti Driving Schools, we believe that the young population of the country holds the key to road safety promotion.
“Therefore, Maruti Suzuki has chosen the youth of India to be its brand ambassadors for this cause,” MSI Chief General Manager (Marketing), Mr Shashank Srivastava, said.
The preliminary rounds of the competition will be held at different regional centres. The final is scheduled in IDTR, Delhi, and the winner will be gifted MSI’s small car A—Star.
RCom ties up with SBI to provide financial services
New Delhi, Apr 20: Private telecom operator, Reliance Communications, on Wednesday launched — Mobile Banking Services — in association with country’s largest public sector lender State Bank of India (SBI) to provide facilities including balance inquiry, mini statement, fund transfer and cheque book issuance.
“This mobile banking service is yet another useful service for our customers, they can now avoid those long queues at the SBI branches,” Reliance Communications President—Wireless Business, Mr Mahesh Prasad, said in a statement.
Reliance consumers can use facilities like balance inquiry, mini statement, fund transfer, cheque book issuance, mobile recharge and bill payment at any time and place through the use of their cell phones, Reliance Communications said in a statement.
Reliance Subscribers will not require any special mobile application or GPRS to use the service, but they should have an active current or savings account with SBI.
“This mobile banking service is yet another useful service for our customers, they can now avoid those long queues at the SBI branches,” Reliance Communications President—Wireless Business, Mr Mahesh Prasad, said in a statement.
Reliance consumers can use facilities like balance inquiry, mini statement, fund transfer, cheque book issuance, mobile recharge and bill payment at any time and place through the use of their cell phones, Reliance Communications said in a statement.
Reliance Subscribers will not require any special mobile application or GPRS to use the service, but they should have an active current or savings account with SBI.
Intel Q1 net up 29% on higher sales
New York, April 20:
Chip maker Intel Corp has reported a 29 per cent rise in net income to $3.16 billion in the first quarter of 2011 on higher sales across its product line coupled with robust growth across all geographies.
In the year-ago period, it had a net income of $2.44 billion, Intel said in a statement. Its total revenue rose by 25 per cent from year-ago period to $12.8 billion in the quarter ended April 2, 2011.
Chip maker Intel Corp has reported a 29 per cent rise in net income to $3.16 billion in the first quarter of 2011 on higher sales across its product line coupled with robust growth across all geographies.
In the year-ago period, it had a net income of $2.44 billion, Intel said in a statement. Its total revenue rose by 25 per cent from year-ago period to $12.8 billion in the quarter ended April 2, 2011.
Western India Shipyard bags Rs 60 cr order from Aban Offshore
MUMBAI: Western India Shipyard, a group firm of ABG Shipyard, today said it has bagged an order worth Rs 60 crore for repair of Aban-II jack-up oil rig from Aban Offshore.
In a filing to the Bombay Stock Exchange, the company said it has signed the repair order for the jack-up oil rig and the scope of work includes steel renewal, pipe renewal, paint protection, supply of various machinery and equipment.
The filing added that the repair work will be taken up after detailed inspection and assessment on arrival of the rig in the shipyard.
Yesterday, Aban had said that it has bagged firm orders worth USD 138 million (Rs 620 crore) from ONGC for the deployment of two jack-up rigs for three years period each.
Following the announcement of the news, scrips of Western India Shipyard closed 4.06 per cent up today on the Bombay Stock Exchange at Rs 13.83 apiece, while shares of Aban Offshore were down by 2.72 per cent at Rs 664.45 apiece.
In a filing to the Bombay Stock Exchange, the company said it has signed the repair order for the jack-up oil rig and the scope of work includes steel renewal, pipe renewal, paint protection, supply of various machinery and equipment.
The filing added that the repair work will be taken up after detailed inspection and assessment on arrival of the rig in the shipyard.
Yesterday, Aban had said that it has bagged firm orders worth USD 138 million (Rs 620 crore) from ONGC for the deployment of two jack-up rigs for three years period each.
Following the announcement of the news, scrips of Western India Shipyard closed 4.06 per cent up today on the Bombay Stock Exchange at Rs 13.83 apiece, while shares of Aban Offshore were down by 2.72 per cent at Rs 664.45 apiece.
Eurocopter looking to set up helicopter emergency medical services in India
NEW DELHI: Aiming at establishing helicopter emergency medical services (HEMS) in the country, Eurocopter is planning a pilot project for a pan- India network with the help of a consortium of government institutions, private hospitals and other stakeholders.
"India urgently needs dedicated HEMS to cater to large populations spread across the vast region. The need of the hour is to step up investment in building pan-India network and infrastructure to promote HEMS," Erwin Stople, co-founder of European HEMS and chief flight surgeon and medical director of Germany's ADAC Air Rescue , said.
He said that HEMS can help save many lives, permanent disabilities and long medical treatment in the case of stroke, heart attacks if appropriate action was taken in the "golden hour".
In emergency medicine, the "golden hour" refers to a time period lasting from a few minutes to several hours following traumatic injury during which there is the highest likelihood that prompt medical treatment will prevent death.
Stressing the need for a dedicated and efficient air medical services, Stople said for a billion-plus population, which is spread at places that are far away from any modern medical facilities such Helicopter Air Ambulance services could help in providing better treatment to time-critical patients.
As Eurocopter's air medical consultant , Stople will be meeting a host of government institutions, private hospitals and other stakeholders to understand the needs and requirment of air medical services.
Elaborating about the air ambulances, Michael Rudolph, head of HEMS in Eurocpoter said, "India has emerged as a mature market especially for new age medical facilities.
"Operators, helicopter manufacturer and association were looking forward to support implementation of HEMS in India by setting up pilot project together with a consortium of government institutions, private hospitals, insurance companies," he said.
He said that implementation of helicopter air ambulance services starting from Delhi, Mumbai, Bangalore and Hyderabad would become one of the most demanding projects in the coming decades.
"India urgently needs dedicated HEMS to cater to large populations spread across the vast region. The need of the hour is to step up investment in building pan-India network and infrastructure to promote HEMS," Erwin Stople, co-founder of European HEMS and chief flight surgeon and medical director of Germany's ADAC Air Rescue , said.
He said that HEMS can help save many lives, permanent disabilities and long medical treatment in the case of stroke, heart attacks if appropriate action was taken in the "golden hour".
In emergency medicine, the "golden hour" refers to a time period lasting from a few minutes to several hours following traumatic injury during which there is the highest likelihood that prompt medical treatment will prevent death.
Stressing the need for a dedicated and efficient air medical services, Stople said for a billion-plus population, which is spread at places that are far away from any modern medical facilities such Helicopter Air Ambulance services could help in providing better treatment to time-critical patients.
As Eurocopter's air medical consultant , Stople will be meeting a host of government institutions, private hospitals and other stakeholders to understand the needs and requirment of air medical services.
Elaborating about the air ambulances, Michael Rudolph, head of HEMS in Eurocpoter said, "India has emerged as a mature market especially for new age medical facilities.
"Operators, helicopter manufacturer and association were looking forward to support implementation of HEMS in India by setting up pilot project together with a consortium of government institutions, private hospitals, insurance companies," he said.
He said that implementation of helicopter air ambulance services starting from Delhi, Mumbai, Bangalore and Hyderabad would become one of the most demanding projects in the coming decades.
Delhi governmet gives approval for Rs 30,000cr Metro Phase-III
NEW DELHI: The Delhi government gave the approval for Phase III of the Delhi Metro network on Monday, paving the way for the Centre to give its sanction to the project plan.
The third phase, which covers 108km, including the extension of the Dwarka line to Najafgarh, will cost Rs 30,000 crore with taxes, said Delhi government.
The alignment of Phase III remains the same as reported earlier this month. From Mukundpur to Yamuna Vihar and Janakpuri (west) to Noida Botanical Garden , the alignment covers a large part of the city, much along the same route as the Ring Road.
This is expected to ease the traffic situation with easy connectivity between the Metro network and the surface-level Ring Road. The cabinet approval came in on Monday. The plan will now be sent to the empowered committee in the ministry of urban development for approval, to be sent thereafter to the group of ministers (GoM) for final sanction. Said CM Sheila Dikshit , "Delhi is lagging behind in terms of having an adequate coverage by Metro network. The two new lines and extension of the existing three lines will go a long way in addressing the issue ."
The two new lines commissioned are the Mukundpur-Yamuna Vihar and Janakpuri West-Noida Botanical Garden, while the three lines being extended include Badarpur-Central Secretariat line going up to Kashmere Gate, the HUDA City Centre-Jehangirpuri going till Badli and the Dwarka line getting extended up to Najafgarh. Added the official, "Incidentally, under Phase II, route length of 108km has almost been commissioned except a section of 3.32km from Kirti Nagar to Ashok Park, which is likely to be commissioned in the next two months."
The cabinet decided to get the DPR (detailed project report) prepared on a priority basis for extension of the existing Dilshad Garden-Rithala line up to Bawana.
The third phase, which covers 108km, including the extension of the Dwarka line to Najafgarh, will cost Rs 30,000 crore with taxes, said Delhi government.
The alignment of Phase III remains the same as reported earlier this month. From Mukundpur to Yamuna Vihar and Janakpuri (west) to Noida Botanical Garden , the alignment covers a large part of the city, much along the same route as the Ring Road.
This is expected to ease the traffic situation with easy connectivity between the Metro network and the surface-level Ring Road. The cabinet approval came in on Monday. The plan will now be sent to the empowered committee in the ministry of urban development for approval, to be sent thereafter to the group of ministers (GoM) for final sanction. Said CM Sheila Dikshit , "Delhi is lagging behind in terms of having an adequate coverage by Metro network. The two new lines and extension of the existing three lines will go a long way in addressing the issue ."
The two new lines commissioned are the Mukundpur-Yamuna Vihar and Janakpuri West-Noida Botanical Garden, while the three lines being extended include Badarpur-Central Secretariat line going up to Kashmere Gate, the HUDA City Centre-Jehangirpuri going till Badli and the Dwarka line getting extended up to Najafgarh. Added the official, "Incidentally, under Phase II, route length of 108km has almost been commissioned except a section of 3.32km from Kirti Nagar to Ashok Park, which is likely to be commissioned in the next two months."
The cabinet decided to get the DPR (detailed project report) prepared on a priority basis for extension of the existing Dilshad Garden-Rithala line up to Bawana.
Even after poll, Kochi Metro project may fail to roll out
NEW DELHI: Making the Kochi Metro rail project a reality is the one common promise made by all political formations in Kerala - be it the Congress-led UDF, the CPM-centric LDF and even the BJP. But the alliance that gets the people's mandate in the state polls on Wednesday would find the Metro project promise a tough one to keep.
The urban development ministry at the Centre has written to the Kerala government asking it to justify the need for a Metro rail project in Kochi.
"As per the Centre's policy for metro rail projects, attention has to be focused on cities with population of 3 million and more," a senior government official told ET. "But Census 2011 pegs Kochi's population at somewhere between 1.3 million and 1.4 million, he said.
The ministry has cited the Census data in a missive to the state administration and asked it to justify Kochi's demand for a metro rail project. "It is not that exceptions can't be made. But they have to be backed up with some logic," the official said. For instance, the Delhi metro rail network was extended to Gurgaon, though Gurgaon does not have a 3 million-plus population. But Gurgaon's proximity to the national capital and the heavy commuter traffic between Delhi and Gurgaon helped its case.
First floated in Congress-led UDF's previous reign in Kerala under former chief minister Oommen Chandy, the Kochi Metro project has been a matter of Centre-state suspense during the VS Achutanandan government's tenure from 2006 till date. "There have not been any favourable steps from the Centre," Achutanandan said in a recent interview about why the Kochi Metro project was going nowhere.
CPM general secretary Prakash Karat recently slammed defence minister A K Antony for a statement that the UPA government has offered maximum help to the LDF government.
"In that case why is the Kochi metro rail project languishing without permission from the central government, despite the state government setting aside Rs 150 crore for preparatory work on this project," Karat had countered.
According to the 2011 census data, Ernakulam district, which includes Kochi city, has a population of over 3.2 million. The rate of population growth in the city has virtually halved from 9.35% in the decade between 1991 and 2001, to about 5.6% from 2001 to 2011. The BJP, hoping to open its account in Kerala in this assembly election, has not only promised vigorous pursuit of the Kochi metro project but also promised a rail link to the Sabarimala temple.
The urban development ministry at the Centre has written to the Kerala government asking it to justify the need for a Metro rail project in Kochi.
"As per the Centre's policy for metro rail projects, attention has to be focused on cities with population of 3 million and more," a senior government official told ET. "But Census 2011 pegs Kochi's population at somewhere between 1.3 million and 1.4 million, he said.
The ministry has cited the Census data in a missive to the state administration and asked it to justify Kochi's demand for a metro rail project. "It is not that exceptions can't be made. But they have to be backed up with some logic," the official said. For instance, the Delhi metro rail network was extended to Gurgaon, though Gurgaon does not have a 3 million-plus population. But Gurgaon's proximity to the national capital and the heavy commuter traffic between Delhi and Gurgaon helped its case.
First floated in Congress-led UDF's previous reign in Kerala under former chief minister Oommen Chandy, the Kochi Metro project has been a matter of Centre-state suspense during the VS Achutanandan government's tenure from 2006 till date. "There have not been any favourable steps from the Centre," Achutanandan said in a recent interview about why the Kochi Metro project was going nowhere.
CPM general secretary Prakash Karat recently slammed defence minister A K Antony for a statement that the UPA government has offered maximum help to the LDF government.
"In that case why is the Kochi metro rail project languishing without permission from the central government, despite the state government setting aside Rs 150 crore for preparatory work on this project," Karat had countered.
According to the 2011 census data, Ernakulam district, which includes Kochi city, has a population of over 3.2 million. The rate of population growth in the city has virtually halved from 9.35% in the decade between 1991 and 2001, to about 5.6% from 2001 to 2011. The BJP, hoping to open its account in Kerala in this assembly election, has not only promised vigorous pursuit of the Kochi metro project but also promised a rail link to the Sabarimala temple.
Punj Lloyd bags Rs 114 crore order for building railway siding
NEW DELHI: Infrastructure developer Punj Lloyd today said it has bagged a Rs 114 contract from Uttar Pradesh Rajya Vidyut Utpadan Nigam for building a railway siding at the state-run utility's Anpara plant.
"It is our first-ever railway contract. The contract is scheduled to be completed within fifteen months," Punj Lloyd said in a statement.
The scope of the work includes improving ground, workshop building and construction of railway siding for supply of coal to two 500-MW thermal power plants at Anpara in the state.
"The contract is an extremely important entry point into the vital railways sector; the potential for the company henceforth is huge," S S Raju, President and CEO, Buildings and Infrastructure (India), Punj Lloyd, said.
The current order backlog for the Punj Lloyd Group on a consolidated basis, including this order, stands at Rs 21,512 crore, the statement said.
"It is our first-ever railway contract. The contract is scheduled to be completed within fifteen months," Punj Lloyd said in a statement.
The scope of the work includes improving ground, workshop building and construction of railway siding for supply of coal to two 500-MW thermal power plants at Anpara in the state.
"The contract is an extremely important entry point into the vital railways sector; the potential for the company henceforth is huge," S S Raju, President and CEO, Buildings and Infrastructure (India), Punj Lloyd, said.
The current order backlog for the Punj Lloyd Group on a consolidated basis, including this order, stands at Rs 21,512 crore, the statement said.
Mobile towers cannot come up without permissions: HC
MUMBAI: Mobile phones have become a necessity but that does not mean that cellphone towers should be put up anywhere without authorisation, the Bombay High Court remarked.
The division bench of justices Ranjana Desai and R G Ketkar was hearing a petition filed by a mobile tower company, 21st Century Infra Tele Ltd, challenging the penalty imposed on it by the Pune Municipal Corporation.
The corporation had asked the company to pay a double tax as a penalty for setting up an unauthorised mobile tower.
"You have to follow rules. Just because you are a reputed mobile phone company, you put up towers anywhere?" Justice Desai said.
The court also rapped the corporation after lawyers appearing for the petitioner said the civic body did not decide applications for permission to set up towers in time.
"Make your procedures simple. Specify what documents are required. The companies cannot be expected to wait for years," the bench said, pointing out that there were number of petitions before the court, regarding disputes between tower companies and civic bodies.
The High Court will hear the case next on April 27.
The division bench of justices Ranjana Desai and R G Ketkar was hearing a petition filed by a mobile tower company, 21st Century Infra Tele Ltd, challenging the penalty imposed on it by the Pune Municipal Corporation.
The corporation had asked the company to pay a double tax as a penalty for setting up an unauthorised mobile tower.
"You have to follow rules. Just because you are a reputed mobile phone company, you put up towers anywhere?" Justice Desai said.
The court also rapped the corporation after lawyers appearing for the petitioner said the civic body did not decide applications for permission to set up towers in time.
"Make your procedures simple. Specify what documents are required. The companies cannot be expected to wait for years," the bench said, pointing out that there were number of petitions before the court, regarding disputes between tower companies and civic bodies.
The High Court will hear the case next on April 27.
Will partner Mukesh Ambani if there's threat from ITC: Leela
NEW DELHI: The hospitality chain Leela Group Chairman C P Krishnan Nair , who is set to retire from active management this June, today said he will consider partnering Mukesh Ambani if there are hostile takeover threats from rival ITC.
"If at all, there is a threat from ITC, Mukesh is available...If at any point of time I want (a partner), Mukesh will be my ideal partner," Nair said.
He was responding to a query if the Leela Group was uncomfortable with ITC gradually increasing stake in his firm.
ITC has been slowly increasing its stake in Hotel Leelaventure Ltd. As of the quarter ended December 2010, ITC and its investment arm Russell Credit Ltd together hold 11.7 per cent stake in the company.
Nair said that while the Leela Group did not expect ITC to make any attempt for a hostile bid, "you never know in the corporate relationships".
In such a scenario, friends will come to help, he said, highlighting the personal relationship that the promoter Nair family has with senior Ambani.
Mukesh Ambani's Reliance Industries had last year picked up 14.80 per cent stake in EIH Ltd that runs the Oberoi and Trident brands of hotels and resorts.
On his succession plans, Nair---the 90-year-old hospitality veteran--- said he will be retiring from active management by June and his sons Vivek and Dinesh will be elevated.
"My son Vivek will take over as the Chairman and I will become the Chairman Emeritus. The younger son Dinesh will be the Managing Director. This will be put up for shareholders' approval at the Annual General Meeting of the company to be held in June," he said.
At present, Vivek Nair is the Vice-Chairman and Managing Director, while Dinesh Nair is the Joint Managing Director of the company.
The Nair family will together continue to run Leela and even the third generation will join the business, he added.
"I have already put my will in place. The family will continue to run the business together. My sons will have equal stake in the company and if at all, any one of them wants to exit, then the first right to buy the stake will be with the other," he said.
Nair also said that his grandchildren were already involved in the business and they would be elevated to the level of Executive Directors when the change of guard takes place in June this year.
"If at all, there is a threat from ITC, Mukesh is available...If at any point of time I want (a partner), Mukesh will be my ideal partner," Nair said.
He was responding to a query if the Leela Group was uncomfortable with ITC gradually increasing stake in his firm.
ITC has been slowly increasing its stake in Hotel Leelaventure Ltd. As of the quarter ended December 2010, ITC and its investment arm Russell Credit Ltd together hold 11.7 per cent stake in the company.
Nair said that while the Leela Group did not expect ITC to make any attempt for a hostile bid, "you never know in the corporate relationships".
In such a scenario, friends will come to help, he said, highlighting the personal relationship that the promoter Nair family has with senior Ambani.
Mukesh Ambani's Reliance Industries had last year picked up 14.80 per cent stake in EIH Ltd that runs the Oberoi and Trident brands of hotels and resorts.
On his succession plans, Nair---the 90-year-old hospitality veteran--- said he will be retiring from active management by June and his sons Vivek and Dinesh will be elevated.
"My son Vivek will take over as the Chairman and I will become the Chairman Emeritus. The younger son Dinesh will be the Managing Director. This will be put up for shareholders' approval at the Annual General Meeting of the company to be held in June," he said.
At present, Vivek Nair is the Vice-Chairman and Managing Director, while Dinesh Nair is the Joint Managing Director of the company.
The Nair family will together continue to run Leela and even the third generation will join the business, he added.
"I have already put my will in place. The family will continue to run the business together. My sons will have equal stake in the company and if at all, any one of them wants to exit, then the first right to buy the stake will be with the other," he said.
Nair also said that his grandchildren were already involved in the business and they would be elevated to the level of Executive Directors when the change of guard takes place in June this year.
Leela to raise Rs 1,950 crore via stake, asset sale to repay debt
NEW DELHI: Hospitality firm Hotel Leelaventure today said it will raise Rs 1,950 crore through sale of equity and assets, and foreign currency convertible bonds to partly repay its debt of Rs 3,800 crore.
"We expect an inflow of Rs 1,950 crore, which will be primarily used to reduce the current debt of Rs 3,800 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.
He said the company was close to concluding a preferential allotment of equity shares in the next 6-8 weeks time to private equity investors.
"There would be stake sale of about 14.95 per cent to either one or two players for about Rs 600 crore," Nair said.
The stake sale will bring down promoters' equity in the company from 55 per cent at present to about 50.5 per cent.
He, however, said the promoters will try to maintain their stake holding in the company to around 55 per cent in future through creeping acquisitions as per SEBI guidelines.
"We have also created business parks in Chennai and Bangalore next to our hotels, which we intend to sell in the next two months. The company is also building upmarket residential complexes in Pune, Hyderabad and Bangalore for selling," Nair said.
Asset sales would bring in another Rs 950 crore into the company, he added.
Besides, in the next 5-6 years the company expects to raise Rs 400 crore through FCCBs, Nair added.
The proceeds from the stake and asset sales along with that from FCCBs would be utilised to serve the current debt, he said, adding post the reduction, the company would have a debt equity ratio of 1.5:1.
Hotel Leelaventure had taken debt to the tune of Rs 3,800 crore to finance setting up of new properties, including those in Udaipur and Chennai.
The company scrip closed at Rs 43.05 per piece, up 4.36 percent from its previous close on Bombay Stock Exchange .
7.53 lakh applicants are vying for the flats, located in areas like Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli. There are one, two and three bedroom flats with the prices ranging from Rs 9 lakh to Rs Rs 1.12 crore.
The housing scheme was launched on November 25, 2010. Asked about the allegations of irregularities that had cropped up during the last draw of lots for its housing scheme, Delhi Development Authority officials had earlier said that all necessary checks and balances were in place.
"The draw is being held in Noida only due to the fact that the number of applicants and the number of flats being allotted under the scheme is high as compared to earlier schemes. CDAC has better wherewithal and expertise to conduct the draw of such a magnitude and it is not possible to transport the equipment from there," an official had said.
"We expect an inflow of Rs 1,950 crore, which will be primarily used to reduce the current debt of Rs 3,800 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.
He said the company was close to concluding a preferential allotment of equity shares in the next 6-8 weeks time to private equity investors.
"There would be stake sale of about 14.95 per cent to either one or two players for about Rs 600 crore," Nair said.
The stake sale will bring down promoters' equity in the company from 55 per cent at present to about 50.5 per cent.
He, however, said the promoters will try to maintain their stake holding in the company to around 55 per cent in future through creeping acquisitions as per SEBI guidelines.
"We have also created business parks in Chennai and Bangalore next to our hotels, which we intend to sell in the next two months. The company is also building upmarket residential complexes in Pune, Hyderabad and Bangalore for selling," Nair said.
Asset sales would bring in another Rs 950 crore into the company, he added.
Besides, in the next 5-6 years the company expects to raise Rs 400 crore through FCCBs, Nair added.
The proceeds from the stake and asset sales along with that from FCCBs would be utilised to serve the current debt, he said, adding post the reduction, the company would have a debt equity ratio of 1.5:1.
Hotel Leelaventure had taken debt to the tune of Rs 3,800 crore to finance setting up of new properties, including those in Udaipur and Chennai.
The company scrip closed at Rs 43.05 per piece, up 4.36 percent from its previous close on Bombay Stock Exchange .
7.53 lakh applicants are vying for the flats, located in areas like Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli. There are one, two and three bedroom flats with the prices ranging from Rs 9 lakh to Rs Rs 1.12 crore.
The housing scheme was launched on November 25, 2010. Asked about the allegations of irregularities that had cropped up during the last draw of lots for its housing scheme, Delhi Development Authority officials had earlier said that all necessary checks and balances were in place.
"The draw is being held in Noida only due to the fact that the number of applicants and the number of flats being allotted under the scheme is high as compared to earlier schemes. CDAC has better wherewithal and expertise to conduct the draw of such a magnitude and it is not possible to transport the equipment from there," an official had said.
Jammu & Kashmir gets its first ritzy 5-star hotel
SRINAGAR: In the backdrop of political uncertainty and to the annoyance of environmentalists, Jammu & Kashmir got its first five-star hotel on the hilltop at Karalsangri in Nishat. Built by Saifco Hill Crest, the new hotel will be managed by the international chain, Taj Group .
After lesser luxury hotels like the Lalit and Centaur Lake View on the banks of Dal Lake, Saifco Hill Crest Hotel, spread over six acres on the hilltop overlooking the Dal Lake has 89 rooms and six suites, including a 2,500 sq feet presidential suite. Besides, it has restaurants, spa, fitness centres, banquet facilities and a business centre.
"It took us more than two decades to complete this hotel with state-of-the-art facilities. There were many glitches along the way after it was conceived in the early 1980s," said Altaf Ahmad, partner, Saifco Group. It was only after they got into an agreement with Vivanta, a brand owned by Taj group's upscale chain, that things fructified.
"It was impossible to think that the hotel could be ready in 2010 summer when there was widespread unrest. We also had the final facelift of the hotel stopped. But now we are ready," Ahmad said.
Owing to its location on a hilltop surrounded by forests, and overlooking the Mughal gardens, the Dal lake and historical monuments around it, former governor Jagmohan had its construction stopped in 1986 for environmental reasons.
Work began again in stops and starts during Farooq Abdullah government in 1987 with Saifco getting favorable court orders.
The owner of Saifco group of industries, Saif-ud-Din, said, "The plan to build a hotel at Kralsangri was conceived by Sheikh Abdullah. Its foundation stone was laid by Farooq Abdullah and it was inaugurated by his son, Omar Abdullah."
Addressing concerns of environmentalists Saif-ud-din said the hotel area is polythene free and a no-smoking zone. Union energy minister Farooq Abdullah, who was present for the inauguration, said the hotel came up after facing a plethora of problems including insurgency. "It will help boost our tourism sector," he said.
After lesser luxury hotels like the Lalit and Centaur Lake View on the banks of Dal Lake, Saifco Hill Crest Hotel, spread over six acres on the hilltop overlooking the Dal Lake has 89 rooms and six suites, including a 2,500 sq feet presidential suite. Besides, it has restaurants, spa, fitness centres, banquet facilities and a business centre.
"It took us more than two decades to complete this hotel with state-of-the-art facilities. There were many glitches along the way after it was conceived in the early 1980s," said Altaf Ahmad, partner, Saifco Group. It was only after they got into an agreement with Vivanta, a brand owned by Taj group's upscale chain, that things fructified.
"It was impossible to think that the hotel could be ready in 2010 summer when there was widespread unrest. We also had the final facelift of the hotel stopped. But now we are ready," Ahmad said.
Owing to its location on a hilltop surrounded by forests, and overlooking the Mughal gardens, the Dal lake and historical monuments around it, former governor Jagmohan had its construction stopped in 1986 for environmental reasons.
Work began again in stops and starts during Farooq Abdullah government in 1987 with Saifco getting favorable court orders.
The owner of Saifco group of industries, Saif-ud-Din, said, "The plan to build a hotel at Kralsangri was conceived by Sheikh Abdullah. Its foundation stone was laid by Farooq Abdullah and it was inaugurated by his son, Omar Abdullah."
Addressing concerns of environmentalists Saif-ud-din said the hotel area is polythene free and a no-smoking zone. Union energy minister Farooq Abdullah, who was present for the inauguration, said the hotel came up after facing a plethora of problems including insurgency. "It will help boost our tourism sector," he said.
Engineers, Women Retain Strength at IIM-Ahmedabad
AHMEDABAD: Engineers have retained their strength at the Indian Institute of Management , Ahmedabad (IIM-A ) for the new 2011-13 batch. The percentage of women candidates , too, has been the same at 10.9% like last year in the 380-strong batch. The batch size for both the years has been the same.
IIMs traditionally see engineers dominating the list of candidates shortlisted for the two-year post-graduate programme in management course. The flagship programme has 94% engineers this year, a marginal drop from 95% admitted last year. The institute has offered seats to 3.5% students from commerce background and to 2% from science stream.
The institute has given 380 offers and has asked the candidates to take decision on joining IIM-A till May 13. CAT scores, performance in group discussion and personal interview apart from educational background form the basis for admission to the IIMs.
"This year too, engineers have performed better," IIM-A admission chairperson Professor Diptesh Ghosh told ET. The 2009-11 batch had 91% engineers and 2010-12 batch had around 95% engineers . IIM-A started its admission process on January 12 and interview rounds on February 23 that ended on March 24.
The institute has interviewed 918 students. There are 52 students who have been put on the waiting list. The institute released the list of its first offer to the students for the 2011-13 batch on Monday. For the 2009-11 batch, the institute had the highest proportion of 19% women students , a significant jump from the 6% admitted in the year before (2008-10 ).
"There would be a number of students who would secure offers from more than one IIM and those joining elsewhere will be replaced from the waiting list," Ghosh said. This year almost 70% have work experience. The number of experienced candidates stood at around 60% in the previous two batches.
"The average age of the batch is 23 years and 19% of the students have experience of more than two years," Ghosh said. This year, IIM-A , IIM-Bangalore and IIM-Calcutta coordinated with each other to hold interviews at the same centre for students who received interview calls from all the three IIMs. "Earlier , they had to visit their respective cities. This year, the coordination helped them save time and money," he said.
IIMs traditionally see engineers dominating the list of candidates shortlisted for the two-year post-graduate programme in management course. The flagship programme has 94% engineers this year, a marginal drop from 95% admitted last year. The institute has offered seats to 3.5% students from commerce background and to 2% from science stream.
The institute has given 380 offers and has asked the candidates to take decision on joining IIM-A till May 13. CAT scores, performance in group discussion and personal interview apart from educational background form the basis for admission to the IIMs.
"This year too, engineers have performed better," IIM-A admission chairperson Professor Diptesh Ghosh told ET. The 2009-11 batch had 91% engineers and 2010-12 batch had around 95% engineers . IIM-A started its admission process on January 12 and interview rounds on February 23 that ended on March 24.
The institute has interviewed 918 students. There are 52 students who have been put on the waiting list. The institute released the list of its first offer to the students for the 2011-13 batch on Monday. For the 2009-11 batch, the institute had the highest proportion of 19% women students , a significant jump from the 6% admitted in the year before (2008-10 ).
"There would be a number of students who would secure offers from more than one IIM and those joining elsewhere will be replaced from the waiting list," Ghosh said. This year almost 70% have work experience. The number of experienced candidates stood at around 60% in the previous two batches.
"The average age of the batch is 23 years and 19% of the students have experience of more than two years," Ghosh said. This year, IIM-A , IIM-Bangalore and IIM-Calcutta coordinated with each other to hold interviews at the same centre for students who received interview calls from all the three IIMs. "Earlier , they had to visit their respective cities. This year, the coordination helped them save time and money," he said.
Ahluwalia Contracts bags Rs 535 cr projects
MUMBAI: Ahluwalia Contracts (India) has bagged orders worth Rs 535 crore from different vendors for construction related projects .
"The company has secured new orders worth Rs 141.50 crore and Rs 184 crore for construction of residential and commercial buildings in major cities from leading developers," Ahluwalia Contracts said in a filing to the Bombay Stock Exchange (BSE).
Further, the company has obtained an order valued at Rs 142.18 crore for construction of hotels and a Rs 34-crore order for construction of institutional buildings.
A Rs 33.02-crore order has also been bagged in the services segment, it added.
Meanwhile, shares of the company were trading at Rs 137, up by 2.47 per cent from the previous close on the BSE.
"The company has secured new orders worth Rs 141.50 crore and Rs 184 crore for construction of residential and commercial buildings in major cities from leading developers," Ahluwalia Contracts said in a filing to the Bombay Stock Exchange (BSE).
Further, the company has obtained an order valued at Rs 142.18 crore for construction of hotels and a Rs 34-crore order for construction of institutional buildings.
A Rs 33.02-crore order has also been bagged in the services segment, it added.
Meanwhile, shares of the company were trading at Rs 137, up by 2.47 per cent from the previous close on the BSE.
Lupin gets USFDA approval for diabetes drug
NEW DELHI: Drug maker Lupin today said it has received tentative approval from US health regulator for its generic Metformin Hydrochloride extended-release tablets, used in the treatment of diabetes, in the American market.
The company's US arm Lupin Pharmaceuticals Inc has received approval from the US Food and Drug Administration for Metformin Hydrochloride extended-release tablets in the strengths of 500 mg and 1000 mg, Lupin said in a statement.
The company's product is generic equivalent of Andrx Labs LLC's Fortamet 500 mg and 1000 mg tablets and is indicated as an supplement to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus, it said.
Commenting on the approval, Lupin Pharmaceuticals CEO Vinita Gupta said: "This product approval demonstrates our commitment to enhance our generic pipeline, leveraging our development and manufacturing strengths in extended-release dosage forms."
The company believes it is the first applicant to file an abbreviated new drug application for Fortamet 500 mg and 1,000 mg and that could translate into 180 days of marketing exclusivity for its product.
"Upon receiving final approval by the FDA, Lupin believes that the 500 mg and 1,000 mg strengths of its product will be entitled to 180 days of marketing exclusivity," it said.
As per IMS Health data, annual sales for Fortamet in the US stood at USD 83 million for the 12 months ending December, 2010, it added.
Shares of Lupin were today trading at Rs 411.90 on the Bombay Stock Exchange in the late afternoon trade, up 0.99 per cent from its previous close.
The company's US arm Lupin Pharmaceuticals Inc has received approval from the US Food and Drug Administration for Metformin Hydrochloride extended-release tablets in the strengths of 500 mg and 1000 mg, Lupin said in a statement.
The company's product is generic equivalent of Andrx Labs LLC's Fortamet 500 mg and 1000 mg tablets and is indicated as an supplement to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus, it said.
Commenting on the approval, Lupin Pharmaceuticals CEO Vinita Gupta said: "This product approval demonstrates our commitment to enhance our generic pipeline, leveraging our development and manufacturing strengths in extended-release dosage forms."
The company believes it is the first applicant to file an abbreviated new drug application for Fortamet 500 mg and 1,000 mg and that could translate into 180 days of marketing exclusivity for its product.
"Upon receiving final approval by the FDA, Lupin believes that the 500 mg and 1,000 mg strengths of its product will be entitled to 180 days of marketing exclusivity," it said.
As per IMS Health data, annual sales for Fortamet in the US stood at USD 83 million for the 12 months ending December, 2010, it added.
Shares of Lupin were today trading at Rs 411.90 on the Bombay Stock Exchange in the late afternoon trade, up 0.99 per cent from its previous close.
Banking on the future with stem cells
PUNE: How do you improve your child's life quality when she turns 70 by investing Rs 1 lakh now? We are not talking insurance, but about creation of a stem cell bank when the child was young and accessed when she grows old.
Deepak Ghaisas -- former chief executive and finance head of i-flex -- is doing just that with his biotechnology firm Stemade. Stemade banks stem cells from your child's teeth when she is eight - or from the wisdom tooth when she is a little older - and allow it to be used even 50 years later.
A bean counter at heart, becoming a biotech entrepreneur is Ghaisas' third avatar, after starting off as a chartered accountant in a food firm and then moving to a very successful stint in technology services. His holding company is called Gencoval (generating companion value, in short) Strategic Services, which runs three subsidiaries: Stemade, Healthbridge, a business process re-engineering programme for hospitals and GCVLife, that is working on a technology that addresses diseases resulting from sleep apnoea.
He explains the stem cell foray in pure accounting terms: "This is the best kind of derivate product, where the downside is capped at Rs 1 lakh, while the upside is huge," Ghaisas said adding "we are addressing health and disease management using solutions based on stem cells and delivered through hospitals."
Ghaisas' logic for a biotech foray is that India is the market for such therapeutic products, unlike information technology.
"The market for IT remains the US, the Indian IT market is much smaller. However, when it comes to biotech and healthcare, the market is here, in India. The delivery is expensive now but that it should come down," he says. Stemade's products will eventually be delivered through hospitals while Healthbridge is working on improving process efficiencies.
Ghaisas, however, is not focusing on India alone: he plans to offer storage services for stem cells in India for customers in Singapore shortly and later for customers in Middle East too. "India can become the world's stem cell storage centre," he says.
The initial Rs 10-crore investment has been made by Ghaisas himself. And he might need venture capital or private equity of around Rs 40-45 crore when he sets up a research centre for which he is scouting for land in the Pune region.
In the four cities that Stemade has been launched, they have 300 registrations and 100 teeth banked. Ghaisas now plans to take the company to another six cities. "We charge Rs 10,000 at the time of registration and 50% of the total amount, Rs 45,000 at the time of the actual deposition of the teeth.
The balance, which is another Rs 45,000, is paid a month after the extraction, when the certification process is completed. We tell parents that if the child is 10-year-old, it would amount to paying Rs 1,000 a month till the child turns 21, although we take the money upfront. After 21, they pay Rs 6,000 annually" Ghaisas said.
There is another, bigger market that opens up with this, that of genomics. Around 10% stem cells have been found to match parents while the success rate in matching siblings is 30-40% but there is also an opportunity to generate matches for people around the world.
A database is being created under the genetic registry and while there are six types of genes, a match of even four of the six is alright with doctors. Ghaisas said he was looking at office space without divulging more.
For Stemade, the focus is on the autologous stem cell market, where a patient is treated using his/her own stem cells. This strategy is much in sync with the global focus on personalised medicine.
"There has been no blockbuster drug which is worth $1 billion, after Viagra. And there is a drying up of the pipeline for new molecule development in the pharma industry. Pharma companies are now eyeing biotechnology, just look at the acquisitions they are making," Ghaisas says explaining his new bet.
These autologous cells are multipotential stem cells which means that they can create tissue, unlike umbilical cord stem cells which are used to treat blood cell- related diseases. For storage purposes, the teeth are broken under a proprietary technology of French firm, Institute Clinident Biopharma, and stored at LifeCell's lab in Chennai for the next 40-50 years.
Deepak Ghaisas -- former chief executive and finance head of i-flex -- is doing just that with his biotechnology firm Stemade. Stemade banks stem cells from your child's teeth when she is eight - or from the wisdom tooth when she is a little older - and allow it to be used even 50 years later.
A bean counter at heart, becoming a biotech entrepreneur is Ghaisas' third avatar, after starting off as a chartered accountant in a food firm and then moving to a very successful stint in technology services. His holding company is called Gencoval (generating companion value, in short) Strategic Services, which runs three subsidiaries: Stemade, Healthbridge, a business process re-engineering programme for hospitals and GCVLife, that is working on a technology that addresses diseases resulting from sleep apnoea.
He explains the stem cell foray in pure accounting terms: "This is the best kind of derivate product, where the downside is capped at Rs 1 lakh, while the upside is huge," Ghaisas said adding "we are addressing health and disease management using solutions based on stem cells and delivered through hospitals."
Ghaisas' logic for a biotech foray is that India is the market for such therapeutic products, unlike information technology.
"The market for IT remains the US, the Indian IT market is much smaller. However, when it comes to biotech and healthcare, the market is here, in India. The delivery is expensive now but that it should come down," he says. Stemade's products will eventually be delivered through hospitals while Healthbridge is working on improving process efficiencies.
Ghaisas, however, is not focusing on India alone: he plans to offer storage services for stem cells in India for customers in Singapore shortly and later for customers in Middle East too. "India can become the world's stem cell storage centre," he says.
The initial Rs 10-crore investment has been made by Ghaisas himself. And he might need venture capital or private equity of around Rs 40-45 crore when he sets up a research centre for which he is scouting for land in the Pune region.
In the four cities that Stemade has been launched, they have 300 registrations and 100 teeth banked. Ghaisas now plans to take the company to another six cities. "We charge Rs 10,000 at the time of registration and 50% of the total amount, Rs 45,000 at the time of the actual deposition of the teeth.
The balance, which is another Rs 45,000, is paid a month after the extraction, when the certification process is completed. We tell parents that if the child is 10-year-old, it would amount to paying Rs 1,000 a month till the child turns 21, although we take the money upfront. After 21, they pay Rs 6,000 annually" Ghaisas said.
There is another, bigger market that opens up with this, that of genomics. Around 10% stem cells have been found to match parents while the success rate in matching siblings is 30-40% but there is also an opportunity to generate matches for people around the world.
A database is being created under the genetic registry and while there are six types of genes, a match of even four of the six is alright with doctors. Ghaisas said he was looking at office space without divulging more.
For Stemade, the focus is on the autologous stem cell market, where a patient is treated using his/her own stem cells. This strategy is much in sync with the global focus on personalised medicine.
"There has been no blockbuster drug which is worth $1 billion, after Viagra. And there is a drying up of the pipeline for new molecule development in the pharma industry. Pharma companies are now eyeing biotechnology, just look at the acquisitions they are making," Ghaisas says explaining his new bet.
These autologous cells are multipotential stem cells which means that they can create tissue, unlike umbilical cord stem cells which are used to treat blood cell- related diseases. For storage purposes, the teeth are broken under a proprietary technology of French firm, Institute Clinident Biopharma, and stored at LifeCell's lab in Chennai for the next 40-50 years.
Biocon's drug development partner Optimer receives US patent for Fidaxomicin
BANGALORE: Bangalore-based biotechnogy firm Biocon's drug development partner Optimer has received US patent for drug Fidaxomicin. The drug is used to treat diarrhea and intestinal diseases.
"We are the single source of supply of drug substance for Optimer which will certainly boost Biocon's sales this coming fiscal," Kiran Mazumdar-Shaw, CMD of Biocon, said. "I would say that the significant impact will be felt from Q1 FY12," she added.
Analysts expect the company to start the supply within a couple of months.
The closest competitor for Fidaxomicin is vancomycin - an antibiotec injectable manufactured and supplied by Strides Arcolabs . The market size is expected to be around $350 million but the margins for Biocon's drug could be bigger because Fidaxomicin is a novel product while vancomycin is a generic one, analysts said.
A generic drug is produced and distributed widely without patent protection and tends to be cheaper than the discovered product. It contains the same active ingredients as the original formulation. For example, paracetamol is the active ingredient of crocin. Paracetamol can therefore be the generic when sold without the brand name as well. The patent lease for Fidoxamicin is expected to last till March 2027.
Biocon shares rose 3% to end at 330 in a weak market.
"We are the single source of supply of drug substance for Optimer which will certainly boost Biocon's sales this coming fiscal," Kiran Mazumdar-Shaw, CMD of Biocon, said. "I would say that the significant impact will be felt from Q1 FY12," she added.
Analysts expect the company to start the supply within a couple of months.
The closest competitor for Fidaxomicin is vancomycin - an antibiotec injectable manufactured and supplied by Strides Arcolabs . The market size is expected to be around $350 million but the margins for Biocon's drug could be bigger because Fidaxomicin is a novel product while vancomycin is a generic one, analysts said.
A generic drug is produced and distributed widely without patent protection and tends to be cheaper than the discovered product. It contains the same active ingredients as the original formulation. For example, paracetamol is the active ingredient of crocin. Paracetamol can therefore be the generic when sold without the brand name as well. The patent lease for Fidoxamicin is expected to last till March 2027.
Biocon shares rose 3% to end at 330 in a weak market.
Gates Foundation to fund two cos for vaccine research
NEW DELHI: Bill and Melinda Gates Foundation will fund two Indian firms- Serum Institute of India and Bharat Biotech- to develop and sell vaccines for pneumonia and diarrhea that kills thousands of children every year, at less than half the current market price.
"The foundation will fund part of the cost for the clinical trials," Cyrus Poonawalla, chairman and MD of Serum Institute of India told ET. He did not say how much money the foundation will contribute but it costs about $10-20 million and $20-30 million to conduct clinical studies for pneumococcal and rotavirus vaccine, respectively. Both Serum Institute and Bharat Biotech are privately held local firms and will separately develop their vaccines.
Bill Gates, co-chair of the Bill and Melinda Gates Foundation and co-founder of IT giant Microsoft, said on Thursday in a media briefing, "We are giving grants to Bharat Biotech for a new rotavirus vaccine." According to estimates, nearly six lakh children die of rotavirus that causes diarrhea among infants each year globally.
The philanthropic organisation will fund as much as $30 million in the phase III trials for rotavirus vaccine that will allow firms like Serum to offer the vaccine 'at the best possible price'. Gates did not say how much of this money will be separately granted to the two Indian vaccine makers.
Krishna Ella, managing director of Bharat Biotech, said it has already started phase III trials of the rotavirus vaccine being developed from an indigenously discovered human strain. He declined to share details.
While both the local firms will work on developing cost rotavirus vaccines , Serum will also be involved in the vaccine for pneumonia.
Under the agreement with Serum, the country's largest vaccine maker will set up the manufacturing plant on its own and supply the two vaccines globally at an affordable price. The company plans to launch the drug in three years at less than half the prices of exiting brands marketed by American drugmaker Merck & Co and UK-based GlaxoSmithKline sell rotavirus vaccines. Some reports say existing drugs cost about $200-250 per dosage in North America.
"We will have a capacity of 80-100 million dosage for each vaccine," said Serum Institute's Poonawalla. The Pune-based firm has been supplying other vaccines for diseases such as menangitis besides pentavalent vaccines at just about one-fourth the price of its competitors, he said. The vaccines will be supplied to international procuring and supply agencies such as the UNICEF. These sourcing agencies can buy a larger number of such low cost vaccines with the same money and thus supply more dosages for underpriviledged children in other needy countries.
Bill Gates said India will be a source of lot of important innovations because it has great scientists and universities with understanding of the local needs. The Foundation plans to work with partners in India at basic research level, drug and vaccine development, manufacture of drugs and vaccines to leverage its low-cost capabilities.
"The foundation will fund part of the cost for the clinical trials," Cyrus Poonawalla, chairman and MD of Serum Institute of India told ET. He did not say how much money the foundation will contribute but it costs about $10-20 million and $20-30 million to conduct clinical studies for pneumococcal and rotavirus vaccine, respectively. Both Serum Institute and Bharat Biotech are privately held local firms and will separately develop their vaccines.
Bill Gates, co-chair of the Bill and Melinda Gates Foundation and co-founder of IT giant Microsoft, said on Thursday in a media briefing, "We are giving grants to Bharat Biotech for a new rotavirus vaccine." According to estimates, nearly six lakh children die of rotavirus that causes diarrhea among infants each year globally.
The philanthropic organisation will fund as much as $30 million in the phase III trials for rotavirus vaccine that will allow firms like Serum to offer the vaccine 'at the best possible price'. Gates did not say how much of this money will be separately granted to the two Indian vaccine makers.
Krishna Ella, managing director of Bharat Biotech, said it has already started phase III trials of the rotavirus vaccine being developed from an indigenously discovered human strain. He declined to share details.
While both the local firms will work on developing cost rotavirus vaccines , Serum will also be involved in the vaccine for pneumonia.
Under the agreement with Serum, the country's largest vaccine maker will set up the manufacturing plant on its own and supply the two vaccines globally at an affordable price. The company plans to launch the drug in three years at less than half the prices of exiting brands marketed by American drugmaker Merck & Co and UK-based GlaxoSmithKline sell rotavirus vaccines. Some reports say existing drugs cost about $200-250 per dosage in North America.
"We will have a capacity of 80-100 million dosage for each vaccine," said Serum Institute's Poonawalla. The Pune-based firm has been supplying other vaccines for diseases such as menangitis besides pentavalent vaccines at just about one-fourth the price of its competitors, he said. The vaccines will be supplied to international procuring and supply agencies such as the UNICEF. These sourcing agencies can buy a larger number of such low cost vaccines with the same money and thus supply more dosages for underpriviledged children in other needy countries.
Bill Gates said India will be a source of lot of important innovations because it has great scientists and universities with understanding of the local needs. The Foundation plans to work with partners in India at basic research level, drug and vaccine development, manufacture of drugs and vaccines to leverage its low-cost capabilities.
Tata Steel signs pact with Rio Tinto on HIsarna iron smelting
NEW DELHI: Tata Steel today said it has signed a licensing agreement with mining major Rio Tinto for commercial development of environment-friendly direct iron smelting process , called HIsarna.
"The agreement covers how both parties will work together, sharing their existing knowledge of the two technologies that are combined in the new process," it said in a statement.
The HIsarna iron-making process consists of cyclone pre-reduction technology (CCF), owned by Tata Steel, and bath smelting technology (HIsmelt), owned by Rio Tinto.
"This combination offers excellent opportunities for the collection and geological storage of carbon-di-oxide, ability to utilise lower-cost raw material feeds and the prospect of energy savings through the elimination of stages in the ironmaking process," the statement added.
The HIsarna technology has long-term potential to replace conventional blast furnaces, coke ovens and sinter plants and to reduce carbon-di-oxide emissions by more than 50 per cent if combined with Carbon Capture and Storage (CCS).
Funded jointly by the consortium of European steelmakers' ULCOS, the European Commission and the Dutch Economic Affairs Ministry, a HIsarna pilot plant is being commissioned at Tata Steel's IJmuiden steelworks in the Netherlands.
The six lakh tonne per annum plant is intended to allow the two constituent technologies to be tested in combination.
"The agreement covers how both parties will work together, sharing their existing knowledge of the two technologies that are combined in the new process," it said in a statement.
The HIsarna iron-making process consists of cyclone pre-reduction technology (CCF), owned by Tata Steel, and bath smelting technology (HIsmelt), owned by Rio Tinto.
"This combination offers excellent opportunities for the collection and geological storage of carbon-di-oxide, ability to utilise lower-cost raw material feeds and the prospect of energy savings through the elimination of stages in the ironmaking process," the statement added.
The HIsarna technology has long-term potential to replace conventional blast furnaces, coke ovens and sinter plants and to reduce carbon-di-oxide emissions by more than 50 per cent if combined with Carbon Capture and Storage (CCS).
Funded jointly by the consortium of European steelmakers' ULCOS, the European Commission and the Dutch Economic Affairs Ministry, a HIsarna pilot plant is being commissioned at Tata Steel's IJmuiden steelworks in the Netherlands.
The six lakh tonne per annum plant is intended to allow the two constituent technologies to be tested in combination.
L&T to seek shareholders' nod to demerge electrical business
NEW DELHI: Leading private infrastructure firm Larsen and Toubro today said it has sought shareholders' approval to transfer its electrical and automation business to a subsidiary.
"The Board of Directors of the company at its meeting held on April 6, 2011, has approved seeking of shareholders approval for transfer of the Electrical & Automation (E&A) Business to a subsidiary and / or associate company or to any other entity," the company said in a regulatory filing.
The filing added that the restructuring will be done as per the relevant sections and rules of the Companies Act, 1956.
The company in a separate notice to shareholders today said that the proposed restructuring would not include the medical equipment business.
In January, Larsen and Toubro group had announced that it would restructure its operations into nine independent entities, including the electrical and automation business.
According to media reports, the company is planning to sell this division and is in talks with Schneider Electric and Eaton Corporation. The reports also suggested that L&T is looking at valuation of Rs 12,000-14,000 crore for the electrical and automation business.
This could not be verified independently with Larsen. Bank of America Merrill Lynch recently valued Larsen's Electrical and Automation business at about Rs 8,900 crore.
Industry experts said that L&T is trying to sell its non-core businesses and wants to focus more on engineering and construction segment which accounted for more than 85 per cent of sales in 2009-10 at Rs 31,650 crore.
On the other hand, Electrical and Automation's (formerly Electrical and Electronics) gross sales were reported at Rs 3675 crore with profit before interest and tax (PBIT).
The proposed to be demerged business of the L&T, which employs approximately 5328 persons, has manufacturing facilities at Mumbai, Ahmednagar and at several locations abroad, while its portfolio covers a big range of electrical equipments, including low and medium-voltage switch-gears.
Following the announcement of the news, scrips of the company were up by 1.62 per cent today on the Bombay Stock Exchange, at Rs 1,706.80 apiece.
"The Board of Directors of the company at its meeting held on April 6, 2011, has approved seeking of shareholders approval for transfer of the Electrical & Automation (E&A) Business to a subsidiary and / or associate company or to any other entity," the company said in a regulatory filing.
The filing added that the restructuring will be done as per the relevant sections and rules of the Companies Act, 1956.
The company in a separate notice to shareholders today said that the proposed restructuring would not include the medical equipment business.
In January, Larsen and Toubro group had announced that it would restructure its operations into nine independent entities, including the electrical and automation business.
According to media reports, the company is planning to sell this division and is in talks with Schneider Electric and Eaton Corporation. The reports also suggested that L&T is looking at valuation of Rs 12,000-14,000 crore for the electrical and automation business.
This could not be verified independently with Larsen. Bank of America Merrill Lynch recently valued Larsen's Electrical and Automation business at about Rs 8,900 crore.
Industry experts said that L&T is trying to sell its non-core businesses and wants to focus more on engineering and construction segment which accounted for more than 85 per cent of sales in 2009-10 at Rs 31,650 crore.
On the other hand, Electrical and Automation's (formerly Electrical and Electronics) gross sales were reported at Rs 3675 crore with profit before interest and tax (PBIT).
The proposed to be demerged business of the L&T, which employs approximately 5328 persons, has manufacturing facilities at Mumbai, Ahmednagar and at several locations abroad, while its portfolio covers a big range of electrical equipments, including low and medium-voltage switch-gears.
Following the announcement of the news, scrips of the company were up by 1.62 per cent today on the Bombay Stock Exchange, at Rs 1,706.80 apiece.
L&T to hive off electrical & automation business
MUMBAI: Larsen & Toubro will hive off its electrical and automation business as a part of its restructuring, the company said on Tuesday.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
LandT, Bhel to gain from new PGCIL norm
MUMBAI: Competition for high-voltage power sub-station projects is heating up after state-run Power Grid Corporation of India (PGCIL) altered the eligibility criteria for the bidding process for the segment.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
GMR Infra eyes $150 mn private equity cash
BANGALORE: GMR Infrastructure Ltd , which develops airports and power projects, is looking to raise $150 million through private equity for its airport arm, its group chief financial officer said on Tuesday.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
KEC International bags Rs 550-cr orders from India, Brazil
NEW DELHI: RPG Group company KEC International today said it has bagged orders worth Rs 550 crore from India and Brazil for the construction of transmission network.
"The company has secured a turnkey contract for construction of transmission lines from Maharashtra State Electricity Transmission Company Ltd (Mahatransco)," KEC International said in a statement.
Total order value is Rs 367 crore and the completion period is 18 months, the statement said.
SAE Towers, the wholly-owned subsidiary of KEC International has secured Rs 183 crore tower supply order in Brazil.
"We are seeing huge demand for transmission towers in American markets, KEC and SAE Towers have secured total Rs 1,350 crore tower supply orders post acquisition," Ramesh Chandak, MD and CEO, KEC International said.
Shares of KEC International were trading at Rs 88.80 in the afternoon trade on the Bombay Stock Exchange today, up 3.32 per cent from its previous close.
"The company has secured a turnkey contract for construction of transmission lines from Maharashtra State Electricity Transmission Company Ltd (Mahatransco)," KEC International said in a statement.
Total order value is Rs 367 crore and the completion period is 18 months, the statement said.
SAE Towers, the wholly-owned subsidiary of KEC International has secured Rs 183 crore tower supply order in Brazil.
"We are seeing huge demand for transmission towers in American markets, KEC and SAE Towers have secured total Rs 1,350 crore tower supply orders post acquisition," Ramesh Chandak, MD and CEO, KEC International said.
Shares of KEC International were trading at Rs 88.80 in the afternoon trade on the Bombay Stock Exchange today, up 3.32 per cent from its previous close.
Stanchart, Jacob Ballas, Old Lane to invest $150 mn in GMR airport business
Bangalore based GMR Group is all set to raise $150 million from three PE firms. A consortium of three PE firms that include, Standard Charted Bank's private equity arm, Jacob Ballas & Old Lane will be investing in the company according to two sources familiar with the deal.
This is the second round of private equity fund raising by GMR for its airport arm, GMR Airports Holding. Last month, it had raised $200 million from SBI Macquarie Infrastructure Fund .
The company is awaiting government approval for the deal. According to the current regulations, any investment of or above Rs 1,200 crore in the aviation sector needs government approval. Since SBI Macquarie's investment was through an offshore vehicle, the new deal will breach the upper limit. However sources said that the company is optimistic that it will get the necessary approval.
The investments would be in the form of a compulsorily convertible structured product that will be convertible when the unit goes public. The private equity investment by SBI Macquarie was also through compulsory convertible preference shares.
'The approval process is underway. I am bond by the confidentiality agreement, so I won't comment on the names. As if now we are waiting for the FIBP approval.' said A Subba, chief financial officer of GMR Infra.
Standard Charted Bank declined to comment on the story.
GMR Airport Holdings operates two airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul). The airport arm accounts for as much as 46 per cent of GMR Infra's revenues. The private equity investment will be used to develop new projects.
GMR Infra has been battling a high debt of around Rs 15,300 crore, while its airport business itself has a debt of around Rs 9,200 crore. The fresh equity infusion could come handy in bringing down the company's debt-equity ratio.
This is the second round of private equity fund raising by GMR for its airport arm, GMR Airports Holding. Last month, it had raised $200 million from SBI Macquarie Infrastructure Fund .
The company is awaiting government approval for the deal. According to the current regulations, any investment of or above Rs 1,200 crore in the aviation sector needs government approval. Since SBI Macquarie's investment was through an offshore vehicle, the new deal will breach the upper limit. However sources said that the company is optimistic that it will get the necessary approval.
The investments would be in the form of a compulsorily convertible structured product that will be convertible when the unit goes public. The private equity investment by SBI Macquarie was also through compulsory convertible preference shares.
'The approval process is underway. I am bond by the confidentiality agreement, so I won't comment on the names. As if now we are waiting for the FIBP approval.' said A Subba, chief financial officer of GMR Infra.
Standard Charted Bank declined to comment on the story.
GMR Airport Holdings operates two airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul). The airport arm accounts for as much as 46 per cent of GMR Infra's revenues. The private equity investment will be used to develop new projects.
GMR Infra has been battling a high debt of around Rs 15,300 crore, while its airport business itself has a debt of around Rs 9,200 crore. The fresh equity infusion could come handy in bringing down the company's debt-equity ratio.
IRB Infra bags Rs 3,600-cr NHAI project in Gujarat
MUMBAI: Construction and engineering firm IRB Infrastructure Developers Ltd on Friday said it has bagged the Rs 3,600-crore first ultra mega project of National Highway Authority of India (NHAI).
The company has emerged as the preferred bidder for six-laning of Ahmedabad to Vadodara section of National Highway-8 on Design Build Finance Operate Transfer (DBFOT) Toll basis, IRB Infrastructure Developers said in a filing with the Bombay Stock Exchange.
The project involves building over 102 km of the highway and improving another over 93 km stretch of the existing Ahmedabad Vadodara Expressway under Phase-V, it said. The project, costing approximately Rs 3600 crore, would be built in three years under the terms of the contract, it said.
IRB would get tolling rights on Ahmedabad Vadodara expressway from the appointed date and has a concession period of 25 years. The premium offered to NHAI in the first year is Rs 309.60 crore which will increase by 5 per cent YoY, it added.
The work involves upgradation of existing section of NH-8 between Ahmedabad and Vadodara from existing two-lane highway to a six-lane super expressway and value addition to the existing Ahmedabad Vadodara Expressway, it said.
Shares of the company closed today at Rs 213.65 on the BSE, up 1.11 per cent from its previous close.
The company has emerged as the preferred bidder for six-laning of Ahmedabad to Vadodara section of National Highway-8 on Design Build Finance Operate Transfer (DBFOT) Toll basis, IRB Infrastructure Developers said in a filing with the Bombay Stock Exchange.
The project involves building over 102 km of the highway and improving another over 93 km stretch of the existing Ahmedabad Vadodara Expressway under Phase-V, it said. The project, costing approximately Rs 3600 crore, would be built in three years under the terms of the contract, it said.
IRB would get tolling rights on Ahmedabad Vadodara expressway from the appointed date and has a concession period of 25 years. The premium offered to NHAI in the first year is Rs 309.60 crore which will increase by 5 per cent YoY, it added.
The work involves upgradation of existing section of NH-8 between Ahmedabad and Vadodara from existing two-lane highway to a six-lane super expressway and value addition to the existing Ahmedabad Vadodara Expressway, it said.
Shares of the company closed today at Rs 213.65 on the BSE, up 1.11 per cent from its previous close.
NTC eyes Rs 2,000 cr sales turnover by 2013-14
NEW DELHI: State-owned National Textiles Corporation (NTC) today said its sales turnover is likely to touch the Rs 2,000-crore mark by 2013-14 from Rs 675 crore in last fiscal.
"We aim to Rs 2,000 crore turnover from core business by 2013-14. The way we are moving, it is not an impossible task," NTC Chairman K Ramachandran Pillai told PTI.
NTC had reoported nearly four-fold increase in its total income in FY'11 to Rs 2,741 crore. However, a lion's share in that (Rs 2,011 crore) was contributed by proceeds of sales of mill lands in Mumbai and Ahmedabad.
Revenue from its core operation though grew by 40 per cent over the previous fiscal to Rs 675 crore.
Pillai said decks are ready for the company to move from a single product firm (yarn) to the entire spectrum of textile business -- spinning, processing, garmenting and weaving.
Apart from spending Rs 1,000 crore capex in the current fiscal to jack up spinning capacity to 7.8 lakh spindles from 6.4 lakh now, NTC is also set to expand its business in the ready-made garment business by this fiscal-end.
"We will produce garments in our integrated units in Hassan (Karnataka) and in Amravati (Maharastra)," Pillai said.
Sensing that the expansion into the growing business will provide the much-needed boost on its topline, NTC also plans to revamp its 92 retail outlets, 37 of which are profit-making now.
The company would also invest Rs 425 crore in association with a joint venture partner to foray into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and infrastructure sectors.
Pillai said the joint venture firm would set up two units -- one each in Northern and Southern India -- and the land required for putting up the plants have already been acquired.
"We aim to Rs 2,000 crore turnover from core business by 2013-14. The way we are moving, it is not an impossible task," NTC Chairman K Ramachandran Pillai told PTI.
NTC had reoported nearly four-fold increase in its total income in FY'11 to Rs 2,741 crore. However, a lion's share in that (Rs 2,011 crore) was contributed by proceeds of sales of mill lands in Mumbai and Ahmedabad.
Revenue from its core operation though grew by 40 per cent over the previous fiscal to Rs 675 crore.
Pillai said decks are ready for the company to move from a single product firm (yarn) to the entire spectrum of textile business -- spinning, processing, garmenting and weaving.
Apart from spending Rs 1,000 crore capex in the current fiscal to jack up spinning capacity to 7.8 lakh spindles from 6.4 lakh now, NTC is also set to expand its business in the ready-made garment business by this fiscal-end.
"We will produce garments in our integrated units in Hassan (Karnataka) and in Amravati (Maharastra)," Pillai said.
Sensing that the expansion into the growing business will provide the much-needed boost on its topline, NTC also plans to revamp its 92 retail outlets, 37 of which are profit-making now.
The company would also invest Rs 425 crore in association with a joint venture partner to foray into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and infrastructure sectors.
Pillai said the joint venture firm would set up two units -- one each in Northern and Southern India -- and the land required for putting up the plants have already been acquired.
Jaypee to foray into dairy business, invest Rs 100cr initially
NEW DELHI: After making a mark in almost all areas it has touched so far, diversified conglomerate Jaypee Group has now set its eyes on the dairy sector, where the growing demand-supply gap is only set to widen further.
The group, founded by Jaiprakash Gaur, initially plans to set up a one million litre per day milk processing plant near Mathura in Uttar Pradesh with an investment of Rs 100 crore.
The group, founded by Jaiprakash Gaur, initially plans to set up a one million litre per day milk processing plant near Mathura in Uttar Pradesh with an investment of Rs 100 crore.
Coca-Cola to take on Rasna at 5 price point
MUMBAI: Coca-Cola India is re-entering the Rs 300 crore branded powdered ready-to drink market after it pulled the plug on its Sunfill brand six years ago.
Interestingly, the global beverage maker has chosen the Rs 5 price point to make a comeback to the space dominated by home-grown brand Rasna. Coca-Cola will hitch a ride on its orange soft drink brand Fanta for its return. However, the company plans to test market the product before going pan-India.
India is the only market where the world's largest beverage maker is getting into the concentrate category with Fanta and only the fifth market where a powdered offering of any of its brands would be made available.
Confectionery maker Cadbury India , part of Kraft Foods , has also recently upped its ante with its Tang brand in this market. The orange flavour is also the largest segment in the powdered soft drink industry where Rasna controls over 90 % of the market.
Talking to TOI, Srinivas Murthy, director, marketing (flavours), Coca-Cola India, said, "We are targeting the consumer segment at the bottom of the socio-economic pyramid as we will introduce the product at an attractive price point. Even the retail touch points chosen for the product will be the traditional FMCG outlets where you do not need refrigeration to store the product the way it is for bottled soft-drinks."
Coca-Cola introduced the Sunfill brand in 2001 to take on Rasna but withdrew the product after four years. The company said it was ahead of the time then. After taking a timeoff, it now intends to use the learnings of its past venture for the launch of this new product-Fanta Fun Times. This was also the time when the 200 ml soft-drink used to be priced at Rs 5.
"The market wasn't ready then and the segment was yet to evolve to the level where a ready-to-drink as well as powdered offering for the same brand could exist," Murthy said. The company may look at launching more brands in this category if the script goes according to plan.
Fanta has 9% share of the Rs 9,000 crore soft drink market and stacks up below Thums Up, Coca-Cola and Sprite in the Cola-Cola portfolio. Along with rival PepsiCo's Mirinda, the orange flavoured drinks have a combined market share of 15%.
Coca-Cola is globally present in the powdered beverage market with brands like Eight O' Clock juice and juice drink in Philippines and the Sunfill brand in Hong Kong, Kenya and the US.
The Rs 5 entry level price point was first introduced by soft drinks makers in early 2000 but was raised to Rs 8-9 a few years later as it put strain on their bottomlines.
"For FMCG companies, these lowunit packs have been used as a strategy to build the brand appeal. They act like brand ambassadors even as they contribute a major chunk of volume sales," said Harish Bijoor, a brand consultant. The Rs 5 entry price point has been traditionally used by pure play FMCG companies to penetrate households in the lower income group seen as a large opportunity for marketers. Categories such as tea, shampoo, biscuits, chips, soaps have proved commercially viable for companies.
Interestingly, the global beverage maker has chosen the Rs 5 price point to make a comeback to the space dominated by home-grown brand Rasna. Coca-Cola will hitch a ride on its orange soft drink brand Fanta for its return. However, the company plans to test market the product before going pan-India.
India is the only market where the world's largest beverage maker is getting into the concentrate category with Fanta and only the fifth market where a powdered offering of any of its brands would be made available.
Confectionery maker Cadbury India , part of Kraft Foods , has also recently upped its ante with its Tang brand in this market. The orange flavour is also the largest segment in the powdered soft drink industry where Rasna controls over 90 % of the market.
Talking to TOI, Srinivas Murthy, director, marketing (flavours), Coca-Cola India, said, "We are targeting the consumer segment at the bottom of the socio-economic pyramid as we will introduce the product at an attractive price point. Even the retail touch points chosen for the product will be the traditional FMCG outlets where you do not need refrigeration to store the product the way it is for bottled soft-drinks."
Coca-Cola introduced the Sunfill brand in 2001 to take on Rasna but withdrew the product after four years. The company said it was ahead of the time then. After taking a timeoff, it now intends to use the learnings of its past venture for the launch of this new product-Fanta Fun Times. This was also the time when the 200 ml soft-drink used to be priced at Rs 5.
"The market wasn't ready then and the segment was yet to evolve to the level where a ready-to-drink as well as powdered offering for the same brand could exist," Murthy said. The company may look at launching more brands in this category if the script goes according to plan.
Fanta has 9% share of the Rs 9,000 crore soft drink market and stacks up below Thums Up, Coca-Cola and Sprite in the Cola-Cola portfolio. Along with rival PepsiCo's Mirinda, the orange flavoured drinks have a combined market share of 15%.
Coca-Cola is globally present in the powdered beverage market with brands like Eight O' Clock juice and juice drink in Philippines and the Sunfill brand in Hong Kong, Kenya and the US.
The Rs 5 entry level price point was first introduced by soft drinks makers in early 2000 but was raised to Rs 8-9 a few years later as it put strain on their bottomlines.
"For FMCG companies, these lowunit packs have been used as a strategy to build the brand appeal. They act like brand ambassadors even as they contribute a major chunk of volume sales," said Harish Bijoor, a brand consultant. The Rs 5 entry price point has been traditionally used by pure play FMCG companies to penetrate households in the lower income group seen as a large opportunity for marketers. Categories such as tea, shampoo, biscuits, chips, soaps have proved commercially viable for companies.
Henkel AG set to sell off stake to Jyothy
NEW DELHI: German firm Henkel AG will sell its entire stake in Henkel India to Jyothy Laboratories , maker of Ujala fabric whitener, in a rare instance of a local firm buying out an international brand in India.
Henkel AG's board last week approved the sale of its 50.97% stake in its Indian arm to Jyothy, two officials in direct knowledge of the development told ET.
"The legal formalities and due diligence of the deal are on and a formal announcement is expected within the next couple of weeks," one of them said on condition of anonymity.
The officials said the sale will be at substantial discount to Henkel's current market price.
The negotiated price is speculated to be 50% cheaper than what Jyothy last month paid Tamil Nadu Petro Products for its 14.9% stake in Henkel India. That deal was for about Rs 60.7 crore, at a discounted Rs 35 per share.
An email sent to Henkel AG on the matter remained unanswered till the time of going to press. Top Jyothy officials too declined comment on the development.
It is not yet certain if Henkel will license its global brands such as Fa, Pril and Bref to different owners. Henkel brands have been losing share and accumulating losses in the country.
Analysts tracking the sector say Jyothy Labs' buy is unlikely to spur a revival of Henkel's brands in the short term.
"Even at a discounted price, Jyothy will find it tough competing with players like Hindustan Unilever and P&G in the detergents space (with Henko)," an analyst at a leading Mumbai-based brokerage house said. "The Rs 445-crore Jyothy, which has extended its Ujala brand to detergents, too, hasn't been able to make a dent in market share of the big players," the person said, requesting anonymity.
A Mumbai-based investment banker said that Jyothy will stop being a debt-free company after the deal since Henkel has Rs 520 crore debt on its books. "This may impact the financial performance of the firm," the person added.
Besides declining market share, Henkel's sales in calendar year 2010 dropped 10% to Rs 534 crore.
Meanwhile, Jyothy is learnt to have got a line of credit for about Rs 600 crore from ICICI Bank in expectation of the buyout. Jyothy has Rs 210 crore of cash and it raised Rs 228 crore through qualified institutional placements last year.
Henkel and Jyothy have overlapping portfolios in categories such as fabric care and dish wash.
Henkel's brand basket includes Henko, Mr White and Chek detergents, Pril and Bref household cleaners, Margo soaps, Fa deodorants and Neem toothpaste. Jyothy's key brands are Ujala fabric whitener, Maxo household insecticide, and Exo dish wash.
The deal marks a phase of consolidation in the Indian FMCG space, as companies have been looking for buyouts, both in local and international markets. Last year, British firm Reckitt Benckiser bought Paras Pharmaceuticals, maker of Moov, Krack and DermiCool brands, for Rs 3,260 crore.
And Parachute maker Marico sold off its Sweekar edible oils brand to Cargill India last month.
In February this year, Henkel India's German parent Henkel AG had mandated HSBC to divest its assets across personal care, laundry and home care categories.
While Emami, Wipro and Dabur initially expressed interest in Henkel's brands, they later pulled out.
Henkel AG's board last week approved the sale of its 50.97% stake in its Indian arm to Jyothy, two officials in direct knowledge of the development told ET.
"The legal formalities and due diligence of the deal are on and a formal announcement is expected within the next couple of weeks," one of them said on condition of anonymity.
The officials said the sale will be at substantial discount to Henkel's current market price.
The negotiated price is speculated to be 50% cheaper than what Jyothy last month paid Tamil Nadu Petro Products for its 14.9% stake in Henkel India. That deal was for about Rs 60.7 crore, at a discounted Rs 35 per share.
An email sent to Henkel AG on the matter remained unanswered till the time of going to press. Top Jyothy officials too declined comment on the development.
It is not yet certain if Henkel will license its global brands such as Fa, Pril and Bref to different owners. Henkel brands have been losing share and accumulating losses in the country.
Analysts tracking the sector say Jyothy Labs' buy is unlikely to spur a revival of Henkel's brands in the short term.
"Even at a discounted price, Jyothy will find it tough competing with players like Hindustan Unilever and P&G in the detergents space (with Henko)," an analyst at a leading Mumbai-based brokerage house said. "The Rs 445-crore Jyothy, which has extended its Ujala brand to detergents, too, hasn't been able to make a dent in market share of the big players," the person said, requesting anonymity.
A Mumbai-based investment banker said that Jyothy will stop being a debt-free company after the deal since Henkel has Rs 520 crore debt on its books. "This may impact the financial performance of the firm," the person added.
Besides declining market share, Henkel's sales in calendar year 2010 dropped 10% to Rs 534 crore.
Meanwhile, Jyothy is learnt to have got a line of credit for about Rs 600 crore from ICICI Bank in expectation of the buyout. Jyothy has Rs 210 crore of cash and it raised Rs 228 crore through qualified institutional placements last year.
Henkel and Jyothy have overlapping portfolios in categories such as fabric care and dish wash.
Henkel's brand basket includes Henko, Mr White and Chek detergents, Pril and Bref household cleaners, Margo soaps, Fa deodorants and Neem toothpaste. Jyothy's key brands are Ujala fabric whitener, Maxo household insecticide, and Exo dish wash.
The deal marks a phase of consolidation in the Indian FMCG space, as companies have been looking for buyouts, both in local and international markets. Last year, British firm Reckitt Benckiser bought Paras Pharmaceuticals, maker of Moov, Krack and DermiCool brands, for Rs 3,260 crore.
And Parachute maker Marico sold off its Sweekar edible oils brand to Cargill India last month.
In February this year, Henkel India's German parent Henkel AG had mandated HSBC to divest its assets across personal care, laundry and home care categories.
While Emami, Wipro and Dabur initially expressed interest in Henkel's brands, they later pulled out.
Reliance Trends to launch 'Spinner by Shane Warne' in India
MUMBAI: Mukesh Ambani-led Reliance Retail's fashion apparel business--Reliance Trends--has tied- up with Australian firm lime door brands ( LMB )) to launch 'Spinner by Shane Warne' a lifestyle and sportswear collection, in the India . market.
Designed by cricketing sensation Shane Warne , the brand was created in 2009 along with local brand strategist Michele Hamdorf of lime door brands, which owns a major stake in the sports and fashion brand.
" Reliance Trends is privileged to be an exclusive partner of 'Spinners by Shane Warne' in India. We are very confident that this brand will be well-received in the Indian retail market. With cricket in the air, we believe the brand will be a great offering for our cricket-loving nation. Spinners will available at all Reliance Trends stores," Reliance Trends' CEO, Arun Sirdeshmukh, said in a statement here.
Reliance Retail is a subsidiary of Mukesh Ambani-run Reliance Industries Limited.
"Reliance Trends has a strong reputation in the global retail sector for being a progressive, growing company. It is fashion-led and value-driven with superior capabilities, including its efficiency in delivering product to market," lime door brand's CEO, Michele Hamdorf, said.
Designed by cricketing sensation Shane Warne , the brand was created in 2009 along with local brand strategist Michele Hamdorf of lime door brands, which owns a major stake in the sports and fashion brand.
" Reliance Trends is privileged to be an exclusive partner of 'Spinners by Shane Warne' in India. We are very confident that this brand will be well-received in the Indian retail market. With cricket in the air, we believe the brand will be a great offering for our cricket-loving nation. Spinners will available at all Reliance Trends stores," Reliance Trends' CEO, Arun Sirdeshmukh, said in a statement here.
Reliance Retail is a subsidiary of Mukesh Ambani-run Reliance Industries Limited.
"Reliance Trends has a strong reputation in the global retail sector for being a progressive, growing company. It is fashion-led and value-driven with superior capabilities, including its efficiency in delivering product to market," lime door brand's CEO, Michele Hamdorf, said.
Canon India to spend Rs 100 cr on advertisement this year
NEW DELHI: Digital imaging firm Canon India on Tuesday said it has earmarked Rs 100 crore for various marketing and promotional activities this year.
"Canon is undertaking various innovative marketing strategies and plans to invest approximately Rs 100 crore for advertising this year," the company said in a statement.
The company, which today announced the launch of 29 digital imaging products, said it plans to expand its customer base to five million people from one million this year.
"While last year, we acquired one million customers, we are aiming to acquire two million customers in 2011 to reach a customer base of five million," Canon India Senior Vice President Alok Bharadwaj said.
Besides, the company is also gearing up to launch its new television commercial featuring cricket icon and its brand ambassador Sachin Tendulkar on April 25, 2011.
The company today launched seven new entry-level digital cameras in the sub - Rs 10,000 category, besides it also unveiled six compact cameras from the PowerShot range, three lifestyle cameras from its IXUS range, six HD Camcorder, two Digital SLR from the EOS range among others.
"Canon is undertaking various innovative marketing strategies and plans to invest approximately Rs 100 crore for advertising this year," the company said in a statement.
The company, which today announced the launch of 29 digital imaging products, said it plans to expand its customer base to five million people from one million this year.
"While last year, we acquired one million customers, we are aiming to acquire two million customers in 2011 to reach a customer base of five million," Canon India Senior Vice President Alok Bharadwaj said.
Besides, the company is also gearing up to launch its new television commercial featuring cricket icon and its brand ambassador Sachin Tendulkar on April 25, 2011.
The company today launched seven new entry-level digital cameras in the sub - Rs 10,000 category, besides it also unveiled six compact cameras from the PowerShot range, three lifestyle cameras from its IXUS range, six HD Camcorder, two Digital SLR from the EOS range among others.
Panasonic eyeing 65% jump in revenue from India in FY 12
MUMBAI: Japanese consumer durables major Panasonic is targeting a nearly 65 per cent jump in revenue from ts India operations in FY 12 to Rs 9,000 crore, a top company executive said today.
"We are aiming to achieve 200-billion yen (Rs 9,000 crore) in sales in India by fiscal 2012. Going forward, we will certainly continue to make our best efforts in India," Panasonic President Fumio Ohtsubo told reporters here.
The company''s head of marketing in India, Manish Sharma, said they will be focusing on product differentiation from competitors, developing India-specific products which cater to domestic needs and communicating in the right way to achieve the targeted Rs 9,000-crore revenues.
"200 billion yen or $2 billion is stiff but definitely achievable," he told PTI.
Panasonic India is currently in the midst of executing a Rs 1,400-crore capex programme, which includes investment in a manufacturing plant at Haryana''s Jhajjar which also has a dedicated R&D facility, Sharma said, stressing that products like an air-conditioner and LCD, which were designed for Indian market, have been met with good response.
Panasonic today launched a new range of smart television, VIERA, which has Internet surfing capabilities.
Sharma said Panasonic''s TV line, which comprises LCD TVs, high definition TVs and 3D TVs, should account for 15 per cent of the 4.5-million TV set sales by end-FY 12.
"We are aiming to achieve 200-billion yen (Rs 9,000 crore) in sales in India by fiscal 2012. Going forward, we will certainly continue to make our best efforts in India," Panasonic President Fumio Ohtsubo told reporters here.
The company''s head of marketing in India, Manish Sharma, said they will be focusing on product differentiation from competitors, developing India-specific products which cater to domestic needs and communicating in the right way to achieve the targeted Rs 9,000-crore revenues.
"200 billion yen or $2 billion is stiff but definitely achievable," he told PTI.
Panasonic India is currently in the midst of executing a Rs 1,400-crore capex programme, which includes investment in a manufacturing plant at Haryana''s Jhajjar which also has a dedicated R&D facility, Sharma said, stressing that products like an air-conditioner and LCD, which were designed for Indian market, have been met with good response.
Panasonic today launched a new range of smart television, VIERA, which has Internet surfing capabilities.
Sharma said Panasonic''s TV line, which comprises LCD TVs, high definition TVs and 3D TVs, should account for 15 per cent of the 4.5-million TV set sales by end-FY 12.
Samsung eyes $4.9 bn sales in India, launches 60 new items
NEW DELHI: Korean consumer durables major Samsung on Wednesday introduced 60 new products across all categories in India with an eye on achieving a 40 per cent jump in sales to $4.9 billion in the country by year-end.
The company also said it is expanding its portfolio across all categories with special focus on pushing products with more advanced technologies, such as smart TVs, 3D televisions, Blu-ray players and its Galaxy Tabs.
"We expect a growth of 40 per cent in sales this year in India. This will be over $3.5 billion, which we did last year," Samsung West Asia Operations President and CEO Jung Soo Shin told reporters here. The strategy for the region is to strengthen market leadership while identifying new opportunities, he added.
Samsung today introduced around 35 new models of television, expanding its 3D range. It also introduced advanced version of Galaxy Tab, which it is planning to introduce in June this year. Besides it has brought a new range of cameras, refrigerator and washing machine among others totaling to 60 new products.
"Definitely our focus will be on this smart categories across all our product range. We want to leverage on the smart technology and drive our growth in future," Samsung India Deputy Managing Director Ravinder Zutshi said.
With more products being introduced, Shin, who is also President and CEO of Samsung India, said the company "will establish an optimum distribution network and additional emphasize on our flagship products and customer marketing activities".
Asked about the company's budget on marketing the new range this year, Zutshi said every year Samsung India spends around 3-4 per cent of the total revenue various marketing initiatives.
"3-4 per cent of our revenue goes on marketing our products. We are already doing a lot of work on promoting our smart products in the electronics and appliances category. we will continue to do more," he said.
The company also said it is expanding its portfolio across all categories with special focus on pushing products with more advanced technologies, such as smart TVs, 3D televisions, Blu-ray players and its Galaxy Tabs.
"We expect a growth of 40 per cent in sales this year in India. This will be over $3.5 billion, which we did last year," Samsung West Asia Operations President and CEO Jung Soo Shin told reporters here. The strategy for the region is to strengthen market leadership while identifying new opportunities, he added.
Samsung today introduced around 35 new models of television, expanding its 3D range. It also introduced advanced version of Galaxy Tab, which it is planning to introduce in June this year. Besides it has brought a new range of cameras, refrigerator and washing machine among others totaling to 60 new products.
"Definitely our focus will be on this smart categories across all our product range. We want to leverage on the smart technology and drive our growth in future," Samsung India Deputy Managing Director Ravinder Zutshi said.
With more products being introduced, Shin, who is also President and CEO of Samsung India, said the company "will establish an optimum distribution network and additional emphasize on our flagship products and customer marketing activities".
Asked about the company's budget on marketing the new range this year, Zutshi said every year Samsung India spends around 3-4 per cent of the total revenue various marketing initiatives.
"3-4 per cent of our revenue goes on marketing our products. We are already doing a lot of work on promoting our smart products in the electronics and appliances category. we will continue to do more," he said.
HSIL eyes acquisitions valued at up to Rs 400 cr
NEW DELHI: Sanitary ware and bathroom equipment maker HSIL today said it is eyeing acquisitions, which could be worth Rs 80 crore to Rs 400 crore to strengthen business.
The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.
"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.
Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.
Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.
HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.
Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.
The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.
Meanwhile, the company is currently working on expanding production capacity.
"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.
Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.
Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.
HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.
Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.
"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.
The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.
"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.
Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.
Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.
HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.
Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.
The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.
Meanwhile, the company is currently working on expanding production capacity.
"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.
Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.
Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.
HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.
Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.
"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.
Mukesh Ambani plans big for financial business, non-traditional way
NEW DELHI: Billionaire industrialist Mukesh Ambani-led Reliance Industries group is planning a big splash in financial services sector, but may take a path different than those adopted traditionally in the business of money.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
Anand Automotive Group aims $ 2 billion sales by 2014
NEW DELHI: Auto component maker Anand Automotive Group today said it targets a sales turnover of $ 2 billion (about Rs 10,000 crore) by 2014 and will invest up to Rs 1,500 crore in the next five years for expansion.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
Tata Chemicals acquires 25% stake in Gabon fertiliser complex for $290 mn
Mumbai: Tata Chemicals has acquired 25.1 per cent stake in the ammonia-urea fertiliser complex at Gabon in Africa for $290 million (Rs 1,300 crore).
The company acquired stake as a strategic investor in stream 1 of a greenfield port-based ammonia-urea fertilizer manufacturing complex in the Republic of Gabon.
The project comprises setting up of 1.3 million tonnes per annum (MTPA) of urea plant in the first phase (stream 1). There is an option to expand into another stream (stream 2) of 1.3 MTPA.
Other shareholders in the project are Olam with 63 per cent stake and the Republic of Gabon with 12 per cent stake.
The plant is strategically located near Gabon’s main port and it enables efficient and cost-effective material handling and proximity to large markets such as Africa, North America, Latin America and India, the statement said.
The company acquired stake as a strategic investor in stream 1 of a greenfield port-based ammonia-urea fertilizer manufacturing complex in the Republic of Gabon.
The project comprises setting up of 1.3 million tonnes per annum (MTPA) of urea plant in the first phase (stream 1). There is an option to expand into another stream (stream 2) of 1.3 MTPA.
Other shareholders in the project are Olam with 63 per cent stake and the Republic of Gabon with 12 per cent stake.
The plant is strategically located near Gabon’s main port and it enables efficient and cost-effective material handling and proximity to large markets such as Africa, North America, Latin America and India, the statement said.
Dr Reddy's expands R&D centre in Cambridge
Chennai/Hyderabad: Dr Reddy's Laboratories has opened its newly expanded Chirotech Technology Centre, a purpose-built facility to house its laboratories and offices, at the Cambridge Science Park, UK.
“Being located in this historic university city and in one of the leading European centres for science and innovation makes it the ideal location to expand and develop our research, development and technology capabilities. The facility will be a centre of excellence for chemistry and reinforces our commitment to building a leading edge research organisation to meet the innovation needs of our customers,” GV Prasad, vice chairman and CEO of the company, said in a release.
Dr Reddy’s had acquired the Chirotech R&D facility from Dow Pharma along with its manufacturing facility in Mirfield, UK, in 2008 at $32 million. The additional capacity of 33,000 ft built at the centre helps to house more number of scientists and laboratory facilities. The company has already increased the number of scientists to 40 from the previous 30, according to a company spokesman.
The additional capacity will help facilitate an initial doubling of scientific staff in Chirotech while providing for further capacity additions in future, the company said. It is expected to strengthen core capabilities in biocatalysis and chemocatalysis, build capacities in fast growing segments and allow development of other areas of expertise in chemistry and processing for use in the pharmaceutical industry. The new facility is part of the custom pharmaceutical services business unit of Dr Reddy's and will offer these expanded services to its customers worldwide.
“Being located in this historic university city and in one of the leading European centres for science and innovation makes it the ideal location to expand and develop our research, development and technology capabilities. The facility will be a centre of excellence for chemistry and reinforces our commitment to building a leading edge research organisation to meet the innovation needs of our customers,” GV Prasad, vice chairman and CEO of the company, said in a release.
Dr Reddy’s had acquired the Chirotech R&D facility from Dow Pharma along with its manufacturing facility in Mirfield, UK, in 2008 at $32 million. The additional capacity of 33,000 ft built at the centre helps to house more number of scientists and laboratory facilities. The company has already increased the number of scientists to 40 from the previous 30, according to a company spokesman.
The additional capacity will help facilitate an initial doubling of scientific staff in Chirotech while providing for further capacity additions in future, the company said. It is expected to strengthen core capabilities in biocatalysis and chemocatalysis, build capacities in fast growing segments and allow development of other areas of expertise in chemistry and processing for use in the pharmaceutical industry. The new facility is part of the custom pharmaceutical services business unit of Dr Reddy's and will offer these expanded services to its customers worldwide.
ONGC Videsh buys into Kazakh oilfield
New Delhi: ONGC Videsh, the foreign arm of India's largest energy explorer ONGC, has signed 'definitive' agreements with Kazakhstan's state-run KazMunaiGas to acquire a 25% stake in the Satpayev exploration block, which has estimated 1.85 billion barrel oil reserves.
The agreements were signed on Saturday during Prime Minister Manmohan Singh's Kazakhstan visit, the company said. The cabinet had approved the deal in July 2009. ONGC Videsh already has stakes in oilfields in several countries including Russia, Sudan and Vietnam, apart from exploration blocks. In a separate development, Kazakhstan announced that it will supply 2100 tonnes of uranium to India's nuclear plants by 2014.
The agreements were signed on Saturday during Prime Minister Manmohan Singh's Kazakhstan visit, the company said. The cabinet had approved the deal in July 2009. ONGC Videsh already has stakes in oilfields in several countries including Russia, Sudan and Vietnam, apart from exploration blocks. In a separate development, Kazakhstan announced that it will supply 2100 tonnes of uranium to India's nuclear plants by 2014.
Retail investors bet big on ETFs, especially those in gold
Mumbai: Underperforming equities drive push, trend seems likely to continue
Indian retail investors are betting big on Exchange Traded Funds (ETFs). The category emerged as an outperformer during financial year 2010-11, even as the mutual fund sector witnessed erosion of assets in other categories.
ETFs were the only category which registered a four-fold increase in influx of funds. Net inflows here were Rs 3,638 crore, compared with a meagre Rs 784 crore in the previous financial year. The number of folios jumped from a little over 200,000 to 420,000. The funds thus mobilised were Rs 7,709 crore against Rs 3,535 crore earlier, up 118 per cent.
On the other hand, overall industry folios dropped two per cent, while the average of assets under management slipped 5.6 per cent to Rs 7.05 lakh crore during the year, against Rs 7.47 lakh crore in the previous year.
Rajan Mehta, executive director, Benchmark Asset Management, says, “Investors’ base in ETFs have gone up as the visibility of these products increased. More, investors' mindset is aligning to the fact that it's a simple, suitable product for them and an investor-centric instrument, with a low cost attached to it.”
The industry added seven more ETF schemes in 2010-11, taking the total to 28. Ten of these are Gold ETFs. Says Nitin Rakesh, managing director and CEO of Motilal Oswal Mutual Fund: “The number of retail investors putting money in ETFs is probably the highest at this point of time.”
Interestingly, it is the gold ETFs which have attracted much of the investor attention. Net inflow in gold ETFs has gone up close to three-fold last year, to Rs 2,250 crore.
“With the kind of rally seen in gold prices over the last three years, investors have understood that gold investment could give better returns at a time when equities are underperforming,” explains Mehta. He says lesser returns from equities last year also contributed to the rising number of retail investors in gold ETFs.
“Investors are now willing to put in 10-20 per cent of their overall investments in ETFs,” adds Mehta. The gold ETFs saw investor folios reach 320,000 in 2010-11, compared with 160,000 in 2009-10.
Fund houses are optimistic about continuation of the high trajectory of growth in the ETF category, which has also attracted global MF players to India. The recent deal of Goldman Sachs taking over Benchmark AMC is one signal in this regard.
Indian retail investors are betting big on Exchange Traded Funds (ETFs). The category emerged as an outperformer during financial year 2010-11, even as the mutual fund sector witnessed erosion of assets in other categories.
ETFs were the only category which registered a four-fold increase in influx of funds. Net inflows here were Rs 3,638 crore, compared with a meagre Rs 784 crore in the previous financial year. The number of folios jumped from a little over 200,000 to 420,000. The funds thus mobilised were Rs 7,709 crore against Rs 3,535 crore earlier, up 118 per cent.
On the other hand, overall industry folios dropped two per cent, while the average of assets under management slipped 5.6 per cent to Rs 7.05 lakh crore during the year, against Rs 7.47 lakh crore in the previous year.
Rajan Mehta, executive director, Benchmark Asset Management, says, “Investors’ base in ETFs have gone up as the visibility of these products increased. More, investors' mindset is aligning to the fact that it's a simple, suitable product for them and an investor-centric instrument, with a low cost attached to it.”
The industry added seven more ETF schemes in 2010-11, taking the total to 28. Ten of these are Gold ETFs. Says Nitin Rakesh, managing director and CEO of Motilal Oswal Mutual Fund: “The number of retail investors putting money in ETFs is probably the highest at this point of time.”
Interestingly, it is the gold ETFs which have attracted much of the investor attention. Net inflow in gold ETFs has gone up close to three-fold last year, to Rs 2,250 crore.
“With the kind of rally seen in gold prices over the last three years, investors have understood that gold investment could give better returns at a time when equities are underperforming,” explains Mehta. He says lesser returns from equities last year also contributed to the rising number of retail investors in gold ETFs.
“Investors are now willing to put in 10-20 per cent of their overall investments in ETFs,” adds Mehta. The gold ETFs saw investor folios reach 320,000 in 2010-11, compared with 160,000 in 2009-10.
Fund houses are optimistic about continuation of the high trajectory of growth in the ETF category, which has also attracted global MF players to India. The recent deal of Goldman Sachs taking over Benchmark AMC is one signal in this regard.
Bank loans grow 21.4% in 2010-11, deposits rise 15.8%
Mumbai: Bank loans registered a growth of 21.38 per cent in 2010-11, while deposit growth stood at 15.84 per cent, according to data released by the Reserve Bank of India (RBI).
While credit growth was higher than RBI’s projection of 20 per cent in 2010-11, deposit growth fell short of the 18 per cent projection. Deposit growth for 2009-10 was 17 per cent, while the growth in credit was 16 per cent.
The growth in loans came off sharply in the last fortnight of the financial year ended March 25, compared to the previous fortnight, in which credit growth was 23.20 per cent. In the fortnight ended March 25, banks disbursed Rs 82,593 crore worth of loans. Deposits grew by Rs 64,333 crore in the fortnight.
Analysts and bankers said a growth rate of 18 per cent in deposits and 20 per cent in credit should be sustainable for banks in 2011-12. With policy rates expected to rise further, banks may not be willing to raise loan rates, owing to liquidity coming back into the system. Typically in the beginning of a financial year, the demand for loans is slack.
“We feel interest rates have peaked. But since inflation is still high, there is a chance of RBI raising policy rates further in May. However, a rise in policy rates will not necessarily mean an immediate hike in deposit and lending rates,” said RK Bansal, executive director and group head (retail banking), IDBI Bank. He said IDBI Bank had no plans to cut retail term deposit rates, nor to raise lending rates. “For the current financial year, because of a low-base, I expect around 20 per cent growth in deposits. I also expect 18-20 per cent growth in credit,” Bansal said.
Liquidity concerns have also ebbed since the beginning of the financial year, as banks become net lenders to the central bank’s liquidity adjustment facility. Liquidity was in deficit mode during the second half of the current financial year, which saw rates heading north.
“Currently, there are no liquidity pressures. Hence, banks may want to withdraw their special rates on deposits. But banks may not reduce rates, as deposits from retail segment are yet to pick up. So they may want to wait and watch before slashing interest rates on deposits,” said a official from a public sector bank.
While credit growth was higher than RBI’s projection of 20 per cent in 2010-11, deposit growth fell short of the 18 per cent projection. Deposit growth for 2009-10 was 17 per cent, while the growth in credit was 16 per cent.
The growth in loans came off sharply in the last fortnight of the financial year ended March 25, compared to the previous fortnight, in which credit growth was 23.20 per cent. In the fortnight ended March 25, banks disbursed Rs 82,593 crore worth of loans. Deposits grew by Rs 64,333 crore in the fortnight.
Analysts and bankers said a growth rate of 18 per cent in deposits and 20 per cent in credit should be sustainable for banks in 2011-12. With policy rates expected to rise further, banks may not be willing to raise loan rates, owing to liquidity coming back into the system. Typically in the beginning of a financial year, the demand for loans is slack.
“We feel interest rates have peaked. But since inflation is still high, there is a chance of RBI raising policy rates further in May. However, a rise in policy rates will not necessarily mean an immediate hike in deposit and lending rates,” said RK Bansal, executive director and group head (retail banking), IDBI Bank. He said IDBI Bank had no plans to cut retail term deposit rates, nor to raise lending rates. “For the current financial year, because of a low-base, I expect around 20 per cent growth in deposits. I also expect 18-20 per cent growth in credit,” Bansal said.
Liquidity concerns have also ebbed since the beginning of the financial year, as banks become net lenders to the central bank’s liquidity adjustment facility. Liquidity was in deficit mode during the second half of the current financial year, which saw rates heading north.
“Currently, there are no liquidity pressures. Hence, banks may want to withdraw their special rates on deposits. But banks may not reduce rates, as deposits from retail segment are yet to pick up. So they may want to wait and watch before slashing interest rates on deposits,” said a official from a public sector bank.
India, US pursue sustainable alliance in coal sector
Mumbai: After the civil nuclear agreement, India and the US are pursuing an alliance in the coal sector. Both the countries, which met recently in New Delhi, are considering encouraging equity partnerships with offtake in expansion projects, long term offtake arrangement and equity in new projects.
India’s premier coal producer, Coal India (CIL), has identified 142 new projects, comprising 35 under ground (UG) and 107 opencast (OC) for ultimate capacity of 380.22 million tonnes with an estimated capex of $7.7 billion.
Besides, CIL is setting up 20 washeries with a capacity of 111.1 million tonnes, with estimated capex of $510 million. India is expected to have a coal production of 447 million tonnes by the end of the 11th plan and 633 million tons by end of the 12th plan. According to Centre’s estimates, the coal shortage is expected to be 85 million tonnes by end of 2011-12.
The alliance is crucial to tackle constraints in exploration of coal. Of 277 billion tonnes geological reserves, only 110 billion tonnes reserves are in “proved category”. Besides, there are problems and constraints in underground mining, mainly because of use of old technology, and labour-intensive processes and safety issues.
A coal ministry official told Business Standard, “In equity model, it is proposed to acquire stakes in operating mines or greenfield coal blocks and import produce from such acquisitions to India. In the off-take model, it is proposed to enter into long-term offtake contract (10 years) with coal companies for procurement of imported coal. USA has been identified as a preferred country for both the equity and off-take models.”
At present, Coal India (CIL) is in an advanced stage of creating strategic alliance with a large US company through the “equity model”. In “off-take model”, several US coal companies have qualified to participate in the final stage of the process and price bids shall be shortly invited from those coal companies.
The official argued: “Thermal coal exports from USA at a competitive price can potentially bridge India’s demand-supply gap. Competitive model for maritime freight needs to be explored for making the landed cost of US coal in India attractive. Indo-US bilateral platform can be leveraged to sensitise stake holders at the government level to create an enabling situation for CIL to strike deals with US coal companies. Several responses were received from US-based coal companies. Discussions are in progress with Peabody, and Massey Energy Corporation.”
US side may come up with new technologies and expertise to take part in mechanisation of UG mines, keeping in view the production, productivity, safety and economics.
India and US are also looking at financing of capacity building and skill development in the area of geospatial technology application in mine land reclamation for sustainable coal mining in India.
Besides, funds can be available to develop core competence of technical experts through training and site visits to make them capable of taking inferred decisions for addressing land reclamation challenges.
India’s premier coal producer, Coal India (CIL), has identified 142 new projects, comprising 35 under ground (UG) and 107 opencast (OC) for ultimate capacity of 380.22 million tonnes with an estimated capex of $7.7 billion.
Besides, CIL is setting up 20 washeries with a capacity of 111.1 million tonnes, with estimated capex of $510 million. India is expected to have a coal production of 447 million tonnes by the end of the 11th plan and 633 million tons by end of the 12th plan. According to Centre’s estimates, the coal shortage is expected to be 85 million tonnes by end of 2011-12.
The alliance is crucial to tackle constraints in exploration of coal. Of 277 billion tonnes geological reserves, only 110 billion tonnes reserves are in “proved category”. Besides, there are problems and constraints in underground mining, mainly because of use of old technology, and labour-intensive processes and safety issues.
A coal ministry official told Business Standard, “In equity model, it is proposed to acquire stakes in operating mines or greenfield coal blocks and import produce from such acquisitions to India. In the off-take model, it is proposed to enter into long-term offtake contract (10 years) with coal companies for procurement of imported coal. USA has been identified as a preferred country for both the equity and off-take models.”
At present, Coal India (CIL) is in an advanced stage of creating strategic alliance with a large US company through the “equity model”. In “off-take model”, several US coal companies have qualified to participate in the final stage of the process and price bids shall be shortly invited from those coal companies.
The official argued: “Thermal coal exports from USA at a competitive price can potentially bridge India’s demand-supply gap. Competitive model for maritime freight needs to be explored for making the landed cost of US coal in India attractive. Indo-US bilateral platform can be leveraged to sensitise stake holders at the government level to create an enabling situation for CIL to strike deals with US coal companies. Several responses were received from US-based coal companies. Discussions are in progress with Peabody, and Massey Energy Corporation.”
US side may come up with new technologies and expertise to take part in mechanisation of UG mines, keeping in view the production, productivity, safety and economics.
India and US are also looking at financing of capacity building and skill development in the area of geospatial technology application in mine land reclamation for sustainable coal mining in India.
Besides, funds can be available to develop core competence of technical experts through training and site visits to make them capable of taking inferred decisions for addressing land reclamation challenges.
BRICS to trade in own currencies
China: The settlement in local currencies will be subject to national laws.
India on Thursday agreed to an arrangement to facilitate and expand the system of settling in local currencies all trade transactions among members of the BRICS group of countries. The agreement followed consultations among development banks representing Brazil, Russia, India, China and South Africa, held here with a view to strengthening the BRICS inter-bank cooperation.
At $4.6 trillion, the five BRICS countries account for almost 15 per cent of global trade volume, but trade among them is only about $230 billion a year. The expanded system of settling trade in local currencies would boost intra-BRICS trade, a senior Chinese government official said.
While the China Development Bank led the discussion at the meeting, held concurrently with the BRICS Summit, the Exim Bank represented the Indian side. A key element in the new arrangement, a senior Indian government official explained, was that the settlement in local currencies would be subject to national laws.
The annual BRICS development banks’ meeting, that began here yesterday, also formalised three other cooperation arrangements among the member countries. To start with, the participating banks agreed to enhance co-operation in cross-border investments and financing of companies and projects.
The development banks also agreed to take pro-active steps in expediting capital market reforms in the BRICS countries, particularly with regard to issuance of bonds and listing of stocks. India, the officials said, would play a major role in this area as it has one of the most developed and active capital markets within the BRICS region.
The fourth element in the inter-bank co-operation mechanism pertains to the development banks’ commitment to promote exchange of information on financing and investments.
The absence of an established system of flow of financial information among the BRICS countries has hindered faster growth of intra-BRICS trade and investments.
The BRICS countries are the most representative countries among emerging markets. The combined population of the five countries is close to three billion, accounting for 43 per cent of the world total. Their combined gross domestic product, or GDP, is $11 trillion, or 16 per cent of the world’s total GDP. Their GDP share in the global pie, however, goes up to almost 25 per cent when compared against their GDP on a purchasing-power-parity basis.
India on Thursday agreed to an arrangement to facilitate and expand the system of settling in local currencies all trade transactions among members of the BRICS group of countries. The agreement followed consultations among development banks representing Brazil, Russia, India, China and South Africa, held here with a view to strengthening the BRICS inter-bank cooperation.
At $4.6 trillion, the five BRICS countries account for almost 15 per cent of global trade volume, but trade among them is only about $230 billion a year. The expanded system of settling trade in local currencies would boost intra-BRICS trade, a senior Chinese government official said.
While the China Development Bank led the discussion at the meeting, held concurrently with the BRICS Summit, the Exim Bank represented the Indian side. A key element in the new arrangement, a senior Indian government official explained, was that the settlement in local currencies would be subject to national laws.
The annual BRICS development banks’ meeting, that began here yesterday, also formalised three other cooperation arrangements among the member countries. To start with, the participating banks agreed to enhance co-operation in cross-border investments and financing of companies and projects.
The development banks also agreed to take pro-active steps in expediting capital market reforms in the BRICS countries, particularly with regard to issuance of bonds and listing of stocks. India, the officials said, would play a major role in this area as it has one of the most developed and active capital markets within the BRICS region.
The fourth element in the inter-bank co-operation mechanism pertains to the development banks’ commitment to promote exchange of information on financing and investments.
The absence of an established system of flow of financial information among the BRICS countries has hindered faster growth of intra-BRICS trade and investments.
The BRICS countries are the most representative countries among emerging markets. The combined population of the five countries is close to three billion, accounting for 43 per cent of the world total. Their combined gross domestic product, or GDP, is $11 trillion, or 16 per cent of the world’s total GDP. Their GDP share in the global pie, however, goes up to almost 25 per cent when compared against their GDP on a purchasing-power-parity basis.
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