Kochi: Petronet LNG Ltd is planning to set up its third terminal in the east coast of India. After the terminals at Dahej and Kochi in the west coast, the third one will come up at Gangavaram in Andhra Pradesh.
Petroleum secretary and Petronet LNG chairman G C Chaturvedi said the 100th board meeting of the company held in Kochi on Friday has given sanction for the project. It has entrusted French consultant Tractabel for preparing the detailed feasibility report. The approximate cost of the 5 million tones capacity terminal will be Rs 4500 crore.
For the third quarter ended December 31, 2011, the company's net profit rose 73 % to Rs 295 crore compared with the corresponding quarter of the previous year. The turnover of the company increased by 74 % to Rs 6330 crore during the period. Petronet LNG managing director A K Balyan said higher increase in net profit is on account of additional volumes with better margins along with higher operational efficiency.
The 5 million tonne Kochi terminal of Petronet LNG will be ready by July and will be operational by October. The terminal has a long term contract for the supply of about 1.5 million tones of LNG from Gorgon in Australia from 2015.
According to Balyan the terminal will have to buy from the spot market till then. Though the long term supply prices is $ 16 per mmbtu, it will be still feasible for companies using feedstock naptha or furnace oil, he said.
Success in my Habit
Monday, January 30, 2012
Airport retail business tops $1 billion revenue
Mumbai: Airport retail business in India topped $1 billion in revenue during 2011, on the back of robust growth in passenger traffic and more people shopping on the go, according to a boutique retail consultancy. The business is growing at 17-18 % annually, emerging as a viable platform for retailers and operators of the new airports, according to Bangalore-based consulting firm Asipac Projects.
Beauty, personal care, alcohol and tobacco emerged as the top three categories in the dutyfree section, while food & beverage , books, periodicals and stationery took the top spot within the duty-paid segment. Globally, airports registered approximately $43 billion in sales, with the likes of London Heathrow and Seoul's Incheon being the most lucrative ones.
"Airport stores are twice as productive for us compared to stores outside, in terms of sales per sq ft, though operational costs go up substantially at airports. Internationally, sales per sq ft are four to five times more compared to street stores at some of the busiest airports. We have a long way to go to go to reach those numbers," said Dipak Agarwal, chief executive (operations and strategy), DLF Retail, which runs retail stores like Mango and Boggi Milano at Delhi's IGI Airport.
The Delhi domestic-cum-international terminal (T3) has a retail area of around 2 lakh sq ft and built to tap the potential of retail revenues. No wonder airport operators like GMR and GVK, who started off with exorbitant rental rates, are now moving towards a revenue-share model. Malls still work on a persq-ft rental model, with the exception of a few.
"Rentals were too high in the beginning. Therefore, the revenue-share model works better. It is like a win-win situation for both parties," said Anuj Puri, chairman and country head, JLL India, a real-estate consultancy . While many retailers shut down some of their airport stores as rentals did not justify sales, others stuck to these stores as a great branding tool. "We have been drawing three to four times more sales from our four stores in Mumbai and Delhi airports compared to outside stores. In fact, we are doing better in Mumbai," said Shashi Kapoor of Parcos, which sells fragrances , cosmetics and skincare. What retailers point out is that the positioning of stores is important for the store's success at airports.
This is where an airport like Bangalore scores despite being no match in size and scale to Delhi. That, coupled with the fact that it is on the outskirts of the city, adds to retail section's success. "Flyers hang around more at an airport like Bangalore as it is far away from the city. Also, shopping at airports in India has anovelty attached to it, considering it is a new concept for us," said Amit Bagaria, chairman & CEO of Asipac Projects.
Beauty, personal care, alcohol and tobacco emerged as the top three categories in the dutyfree section, while food & beverage , books, periodicals and stationery took the top spot within the duty-paid segment. Globally, airports registered approximately $43 billion in sales, with the likes of London Heathrow and Seoul's Incheon being the most lucrative ones.
"Airport stores are twice as productive for us compared to stores outside, in terms of sales per sq ft, though operational costs go up substantially at airports. Internationally, sales per sq ft are four to five times more compared to street stores at some of the busiest airports. We have a long way to go to go to reach those numbers," said Dipak Agarwal, chief executive (operations and strategy), DLF Retail, which runs retail stores like Mango and Boggi Milano at Delhi's IGI Airport.
The Delhi domestic-cum-international terminal (T3) has a retail area of around 2 lakh sq ft and built to tap the potential of retail revenues. No wonder airport operators like GMR and GVK, who started off with exorbitant rental rates, are now moving towards a revenue-share model. Malls still work on a persq-ft rental model, with the exception of a few.
"Rentals were too high in the beginning. Therefore, the revenue-share model works better. It is like a win-win situation for both parties," said Anuj Puri, chairman and country head, JLL India, a real-estate consultancy . While many retailers shut down some of their airport stores as rentals did not justify sales, others stuck to these stores as a great branding tool. "We have been drawing three to four times more sales from our four stores in Mumbai and Delhi airports compared to outside stores. In fact, we are doing better in Mumbai," said Shashi Kapoor of Parcos, which sells fragrances , cosmetics and skincare. What retailers point out is that the positioning of stores is important for the store's success at airports.
This is where an airport like Bangalore scores despite being no match in size and scale to Delhi. That, coupled with the fact that it is on the outskirts of the city, adds to retail section's success. "Flyers hang around more at an airport like Bangalore as it is far away from the city. Also, shopping at airports in India has anovelty attached to it, considering it is a new concept for us," said Amit Bagaria, chairman & CEO of Asipac Projects.
Sebi eases preferential allotment norms
Mumbai: The Securities and Exchange Board of India (Sebi), the capital market regulator, today lifted restrictions on broad-based institutions, such as insurance companies and mutual funds, subscribing to preferential issues of companies. The decision was taken at its board meeting in New Delhi today.
According to earlier regulations, these institutions were not allowed to participate in preferential allotments if they had sold holdings in the issuer companies in the preceding six months. Further, on allotment, they were required to lock in their entire pre-preferential holdings in such companies for a period of six months from the date of preferential allotment.
Both these restrictions have now been lifted. “It has been decided to exempt insurance companies and mutual funds, which are broad-based investment vehicles representing public at large, from regulations related to sale and lock-in of their pre-preferential shareholding in issuer companies,” Sebi said in a release. However, the lock-in on shares allotted in the preferential issue, will remain unchanged.
Peerless Mutual Fund MD & CEO Akshay Gupta said: “The move will benefit some of the larger asset management companies (AMCs) that already have significant holdings in companies and want to increase those further through preferential allotments. At present, not many AMCs participate in preferential allotments.”
Quantum Mutual Fund Chief Executive Officer Jimmy Patel added: “The move to ease preferential allotment norms will help promoters more than AMCs, as their investor base will increase. Mutual fund houses will now be able to invest in companies, even if they had sold shares in the companies in the past six months.”
Other key decisions
Amendment to MF Advertisement Code: To provide more flexibility to mutual fund houses, Sebi has decided to amended the advertising code to make it principle-based. “The definition of advertisement shall be broadened to include all forms of communication that may influence investment decisions of any investor,” the regulator said.
“Under the current advertisement code, there are many restrictions. More than 40 per cent of the ad space gets wasted on disclaimers and information that investors don’t even read. I hope the new code would give us more flexibility and reduce the disclaimers, so that we can advertise our products properly,” said Gupta.
PMS investment limit increased: The market regulator has increased the minimum investment amount under portfolio management services from Rs 5 lakh to Rs 25 lakh. Further, portfolio managers have been asked to ensure segregation of holdings in individual demat accounts in respect of unlisted securities, too.
“Raising the PMS limit was long overdue. The move will benefit the mutual fund industry. As portfolio managers, who have better incentive structures, used to lure relatively small high networth individuals (HNIs) away from mutual fund houses. This will bring back a lot of investors to mutual funds,” said Patel.
Reservation for holders of convertible debt securities: Sebi has clarified that reservations to convertible debt holders in rights and bonus issues shall only be available to compulsorily convertible debt holders.
According to earlier regulations, these institutions were not allowed to participate in preferential allotments if they had sold holdings in the issuer companies in the preceding six months. Further, on allotment, they were required to lock in their entire pre-preferential holdings in such companies for a period of six months from the date of preferential allotment.
Both these restrictions have now been lifted. “It has been decided to exempt insurance companies and mutual funds, which are broad-based investment vehicles representing public at large, from regulations related to sale and lock-in of their pre-preferential shareholding in issuer companies,” Sebi said in a release. However, the lock-in on shares allotted in the preferential issue, will remain unchanged.
Peerless Mutual Fund MD & CEO Akshay Gupta said: “The move will benefit some of the larger asset management companies (AMCs) that already have significant holdings in companies and want to increase those further through preferential allotments. At present, not many AMCs participate in preferential allotments.”
Quantum Mutual Fund Chief Executive Officer Jimmy Patel added: “The move to ease preferential allotment norms will help promoters more than AMCs, as their investor base will increase. Mutual fund houses will now be able to invest in companies, even if they had sold shares in the companies in the past six months.”
Other key decisions
Amendment to MF Advertisement Code: To provide more flexibility to mutual fund houses, Sebi has decided to amended the advertising code to make it principle-based. “The definition of advertisement shall be broadened to include all forms of communication that may influence investment decisions of any investor,” the regulator said.
“Under the current advertisement code, there are many restrictions. More than 40 per cent of the ad space gets wasted on disclaimers and information that investors don’t even read. I hope the new code would give us more flexibility and reduce the disclaimers, so that we can advertise our products properly,” said Gupta.
PMS investment limit increased: The market regulator has increased the minimum investment amount under portfolio management services from Rs 5 lakh to Rs 25 lakh. Further, portfolio managers have been asked to ensure segregation of holdings in individual demat accounts in respect of unlisted securities, too.
“Raising the PMS limit was long overdue. The move will benefit the mutual fund industry. As portfolio managers, who have better incentive structures, used to lure relatively small high networth individuals (HNIs) away from mutual fund houses. This will bring back a lot of investors to mutual funds,” said Patel.
Reservation for holders of convertible debt securities: Sebi has clarified that reservations to convertible debt holders in rights and bonus issues shall only be available to compulsorily convertible debt holders.
Chile seeks partnership in renewable energy, lithium
Chennai: Chile wants India to partner with it in the development of renewable energy industry on its soil. Mr Guido Girardi, President of the Senate of the Republic of Chile, today said that India would be welcome to set up power plants that generate energy from renewable sources.
In an interaction with the members of the Confederation of Indian Industry – Southern Region, Mr Girardi pointed out that Chile had 4,000-km-long coastline that afforded possibilities of developing tidal energy, and being a volcanic country, geo-thermal energy was also possible.
A member of the delegation led by Mr Girardi said at the interaction that while everybody knew Chile as a producer of copper, not many knew it was also rich in lithium. Lithium is a metal that is used in the manufacture of batteries for electric vehicles. Chile would welcome any kind of partnership in this area too, he said, noting that the Japanese had formed similar partnerships in the neighbouring Argentina.
Mr Girardi said that the mining sector in Chile would need investments of about $40-50 billion. Such huge mining operations would need energy. “We foresee a tremendous need for solar energy,” he said.
Mr T.T. Ashok, Chairman, CII-Southern Region, said India was set to emerge as a hub of wind, solar, biomass and bio-fuels related manufacturing and exports because of its very strong manufacturing and R&D orientation.
“The two countries need to expedite the proposed Comprehensive Economic Cooperation Agreement that can cover protection of bilateral investments, services, and education,” Mr Ashok said.
In an interaction with the members of the Confederation of Indian Industry – Southern Region, Mr Girardi pointed out that Chile had 4,000-km-long coastline that afforded possibilities of developing tidal energy, and being a volcanic country, geo-thermal energy was also possible.
A member of the delegation led by Mr Girardi said at the interaction that while everybody knew Chile as a producer of copper, not many knew it was also rich in lithium. Lithium is a metal that is used in the manufacture of batteries for electric vehicles. Chile would welcome any kind of partnership in this area too, he said, noting that the Japanese had formed similar partnerships in the neighbouring Argentina.
Mr Girardi said that the mining sector in Chile would need investments of about $40-50 billion. Such huge mining operations would need energy. “We foresee a tremendous need for solar energy,” he said.
Mr T.T. Ashok, Chairman, CII-Southern Region, said India was set to emerge as a hub of wind, solar, biomass and bio-fuels related manufacturing and exports because of its very strong manufacturing and R&D orientation.
“The two countries need to expedite the proposed Comprehensive Economic Cooperation Agreement that can cover protection of bilateral investments, services, and education,” Mr Ashok said.
India signs multilateral pact for tax co-operation
New Delhi: India has signed an international agreement that could be an effective tool to help it combat tax avoidance and evasion.
This agreement — Multilateral Convention on Mutual Administrative Assistance in Tax Matters — is being seen as the ‘gold standard' for co-operation in tax administration.
This pact was signed at the OECD headquarters in Paris by Mr Sanjay Mishra, Joint Secretary, Central Board of Direct Taxes, in the presence of the OECD Deputy Secretary-General, Mr Rintaro Tamakio.
Mr Jeffrey Owens, Director of the OECD Centre for Tax policy and Administration, said India had moved very quickly since its commitment to the convention at the November G20 meet in Cannes. “I expect that India will be the first non-OECD G20 country where the updated Convention is in force,” he said in a statement.
The multilateral convention covers all taxes (direct and indirect), all forms of exchange of information and provides for assistance not just in tax assessment but also in the actual collection.
At the G20 leaders' Summit at Cannes in November last year, India had signed a letter of intent on the multilateral convention.
By signing the convention, India and the other 31 signatories will encourage more countries to join, sending a strong signal that they are acting in unison to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place.
Signatories to the amended convention are Argentina, Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Ireland, Italy, Japan, Korea, Mexico, Moldova, Netherlands, Norway, Poland, Portugal, Russia, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine, the UK, and the US.
This agreement — Multilateral Convention on Mutual Administrative Assistance in Tax Matters — is being seen as the ‘gold standard' for co-operation in tax administration.
This pact was signed at the OECD headquarters in Paris by Mr Sanjay Mishra, Joint Secretary, Central Board of Direct Taxes, in the presence of the OECD Deputy Secretary-General, Mr Rintaro Tamakio.
Mr Jeffrey Owens, Director of the OECD Centre for Tax policy and Administration, said India had moved very quickly since its commitment to the convention at the November G20 meet in Cannes. “I expect that India will be the first non-OECD G20 country where the updated Convention is in force,” he said in a statement.
The multilateral convention covers all taxes (direct and indirect), all forms of exchange of information and provides for assistance not just in tax assessment but also in the actual collection.
At the G20 leaders' Summit at Cannes in November last year, India had signed a letter of intent on the multilateral convention.
By signing the convention, India and the other 31 signatories will encourage more countries to join, sending a strong signal that they are acting in unison to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place.
Signatories to the amended convention are Argentina, Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Ireland, Italy, Japan, Korea, Mexico, Moldova, Netherlands, Norway, Poland, Portugal, Russia, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine, the UK, and the US.
Thursday, January 26, 2012
Reliance Dreamworks' movies bags 11 Oscar nominations
MUMBAI: War Horse, The Help and Real Steel, Hollywood films produced by Reliance Dream-Works, have bagged 11 nominations at this year's Oscars, making it the first time films produced by an Indian company have been nominated in such a big way.
The Steven Spielberg-directed War Horse has been nominated in six categories including the best picture, sound editing, sound mixing, original score (John Williams), art direction and cinematography. War Horse will be released in India on February 10.
The Help has been nominated for the best picture, best actress (Viola Davis), best supporting actress (Jessica Chastain and Octavia Spencer). Hugh Jackman-starrer sci- fi thriller Real Steel has been nominated for Best achievement in Visual Effects. The most prestigious best film category has two films from the Reliance DreamWorks stable.
Reliance DreamWorks is an equal joint venture between Anil Ambani-owned Reliance Entertainment and Steven Spielberg's DreamWorks Studios. The deal was preceded by Reliance Entertainment's foray into Hollywood in early 2009, which saw the company signing a deals with A-list stars including Brad Pitt, George Clooney, Tom Hanks, Jim Carrey and Julia Roberts.
The Steven Spielberg-directed War Horse has been nominated in six categories including the best picture, sound editing, sound mixing, original score (John Williams), art direction and cinematography. War Horse will be released in India on February 10.
The Help has been nominated for the best picture, best actress (Viola Davis), best supporting actress (Jessica Chastain and Octavia Spencer). Hugh Jackman-starrer sci- fi thriller Real Steel has been nominated for Best achievement in Visual Effects. The most prestigious best film category has two films from the Reliance DreamWorks stable.
Reliance DreamWorks is an equal joint venture between Anil Ambani-owned Reliance Entertainment and Steven Spielberg's DreamWorks Studios. The deal was preceded by Reliance Entertainment's foray into Hollywood in early 2009, which saw the company signing a deals with A-list stars including Brad Pitt, George Clooney, Tom Hanks, Jim Carrey and Julia Roberts.
Essar Projects bags a Rs 286 crores contract from Gujarat Water Infrastructure Limited
NEW DELHI: Essar Projects, India's second largest EPC company and part of the Essar Group, was awarded Rs 286 crores Contract from Gujarat Water Infrastructure Limited to Engineer, Procure, Construct & Commission (EPCC) a water pipeline system.
This is part of the ambitious Bulk Water Transmission System Project being implemented by the Gujarat Government. The project is scheduled for completion in 12 months.
It is one of the eight packages of Sardar Sarovar Narmada Canal-based drinking water supply project, which aims at supplying water to all the rural and urban areas of the seven districts of Saurashtra, Kachchh region and parts of Ahemdabad, Sabarakantha, Mehsana districts of North Gujarat and Panchmahals.
"Essar Projects has been successfully bidding and winning new business in the open market. This award from GWIL is a testimony to our competitive capabilities in the EPC space in India," said Mr MS Ambegaonkar, Director Business Development, Essar Projects.
Essar Projects is increasingly expanding its global footprint. Currently the company is bidding as well as executing multi-million dollar contracts in SE Asia, Australasia, Middle East & Africa.
The company's revenue for FY2011 was US$ 1.7 billion and Order Book stood in excess of US$ 6 billion.
This is part of the ambitious Bulk Water Transmission System Project being implemented by the Gujarat Government. The project is scheduled for completion in 12 months.
It is one of the eight packages of Sardar Sarovar Narmada Canal-based drinking water supply project, which aims at supplying water to all the rural and urban areas of the seven districts of Saurashtra, Kachchh region and parts of Ahemdabad, Sabarakantha, Mehsana districts of North Gujarat and Panchmahals.
"Essar Projects has been successfully bidding and winning new business in the open market. This award from GWIL is a testimony to our competitive capabilities in the EPC space in India," said Mr MS Ambegaonkar, Director Business Development, Essar Projects.
Essar Projects is increasingly expanding its global footprint. Currently the company is bidding as well as executing multi-million dollar contracts in SE Asia, Australasia, Middle East & Africa.
The company's revenue for FY2011 was US$ 1.7 billion and Order Book stood in excess of US$ 6 billion.
Only 53% of Indian businesses aware of new international accounting standards
NEW DELHI: Only 53 per cent of Indian businesses are aware of the impending global changes in the existing accounting standards that will impact the way they recognise and report revenue, according to a survey.
Besides, of the 2,800 businesses surveyed by Grant Thornton, nearly 60 per cent believed that existing accounting standards, which are almost two decades old, need to be improved or replaced.
The new accounting standard IFRS is scheduled to be implemented next year. Areas that may be affected because of the new rules include multiple element arrangements, sales incentives, contingent pricing arrangements and contracts with a significant financing element.
Sai Venkateshwaran, Partner and IFRS Practice Leader of Grant Thornton India, said: "The proposals will change the amount or timing or revenue in some cases, although the impact will differ for companies applying IFRS, US GAAP and Indian GAAP."
He added, "The changes could be more significant for Indian companies considering that they are moving from a state where there is diversity in practice due to the limited guidance available under Indian GAAP."
Meanwhile, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are developing a joint proposal for converged revenue recognition standard.
The IASB and FASB's joint latest proposal was published in November, 2011, following a previous Exposure Draft in June 2010 and a Preliminary Views document in 2008.
However, more than three quarters (78 per cent) of the survey respondents believe that the latest joint proposals would lead to increased costs and 57 per cent said it would lead to more complexity.
Support for change was lowest in the US, the UK, and South Africa, while support was greatest in India, the ASEAN countries and Latin America.
Ed Nusbaum, CEO of Grant Thornton International said: "Revenue is a key performance measure for every business and a single, global accounting standard in this area is critical.
"The US literature suffers from the opposite problem of excessive guidance - much of which is specific to particular industries. The regional variations in attitude to the Boards' proposals are no doubt affected by these different starting points."
Besides, of the 2,800 businesses surveyed by Grant Thornton, nearly 60 per cent believed that existing accounting standards, which are almost two decades old, need to be improved or replaced.
The new accounting standard IFRS is scheduled to be implemented next year. Areas that may be affected because of the new rules include multiple element arrangements, sales incentives, contingent pricing arrangements and contracts with a significant financing element.
Sai Venkateshwaran, Partner and IFRS Practice Leader of Grant Thornton India, said: "The proposals will change the amount or timing or revenue in some cases, although the impact will differ for companies applying IFRS, US GAAP and Indian GAAP."
He added, "The changes could be more significant for Indian companies considering that they are moving from a state where there is diversity in practice due to the limited guidance available under Indian GAAP."
Meanwhile, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are developing a joint proposal for converged revenue recognition standard.
The IASB and FASB's joint latest proposal was published in November, 2011, following a previous Exposure Draft in June 2010 and a Preliminary Views document in 2008.
However, more than three quarters (78 per cent) of the survey respondents believe that the latest joint proposals would lead to increased costs and 57 per cent said it would lead to more complexity.
Support for change was lowest in the US, the UK, and South Africa, while support was greatest in India, the ASEAN countries and Latin America.
Ed Nusbaum, CEO of Grant Thornton International said: "Revenue is a key performance measure for every business and a single, global accounting standard in this area is critical.
"The US literature suffers from the opposite problem of excessive guidance - much of which is specific to particular industries. The regional variations in attitude to the Boards' proposals are no doubt affected by these different starting points."
HR industry grows at 21% over 4 years: Executive Recruiters Association and E&Y report
BANGALORE: The human resource industry in India has grown at a compounded annual growth rate of 21% over the past four years and is pegged to be around Rs 22,800 crore, according to a report by Executive Recruiters Association and Ernst & Young. As the industry gets more organised, new players, emerging sectors and multinationals are dropping anchor, and a changing mindset in traditional companies makes space for HR firms rather than referrals for hiring, it adds.
The 'Human Resource Industry Solutions Report 2012' indicates a maturing industry which is moving from being fragmented to getting more organised. The industry has players that are segregated into recruitment , temporary staffing and executive search. HR consultants' image has moved many notches up from being a vendor to that of a partner who plays a key role in the company's growth trajectory , says the report.
While the permanent recruitment in India is estimated at Rs 3,000 crore, the search industry is pegged to have a market size of Rs 600 crore to Rs 700 crore. The search sector gets its boost from foreign players entering Indian markets and expanding into different geographies and industries. Companies that deal with the automobile, luxury , agricultural and food business that have entered India in the past few years have used search firms to expand further.
"The Indian economic, social and cultural landscape is in the middle of unprecedented change. The need for solutions for complex problems of growth, innovation, and professionalisation is driving the opportunity for the HR solutions industry in a way that has never been seen before," says Amit Zutshi, Partner in Ernst & Young's Transaction Advisory Services practice. Temporary hiring has a 73% market share while permanent staffing has 13% of the pie, says the report.
The temporary recruitment industry is expected to be at around Rs 17,200 crore in which professional staffing accounts for Rs 5,300 crore and general staffing is at Rs 11,900 crore. Firms that are into professional staffing have a margin as high as 30% to 35%. Temporary staffing globally is at $140 billion but on the domestic front, with more companies leasing out job requirements, 2.5% to 3% of the workforce is expected to be on contracts in India in the near future.
The 'Human Resource Industry Solutions Report 2012' indicates a maturing industry which is moving from being fragmented to getting more organised. The industry has players that are segregated into recruitment , temporary staffing and executive search. HR consultants' image has moved many notches up from being a vendor to that of a partner who plays a key role in the company's growth trajectory , says the report.
While the permanent recruitment in India is estimated at Rs 3,000 crore, the search industry is pegged to have a market size of Rs 600 crore to Rs 700 crore. The search sector gets its boost from foreign players entering Indian markets and expanding into different geographies and industries. Companies that deal with the automobile, luxury , agricultural and food business that have entered India in the past few years have used search firms to expand further.
"The Indian economic, social and cultural landscape is in the middle of unprecedented change. The need for solutions for complex problems of growth, innovation, and professionalisation is driving the opportunity for the HR solutions industry in a way that has never been seen before," says Amit Zutshi, Partner in Ernst & Young's Transaction Advisory Services practice. Temporary hiring has a 73% market share while permanent staffing has 13% of the pie, says the report.
The temporary recruitment industry is expected to be at around Rs 17,200 crore in which professional staffing accounts for Rs 5,300 crore and general staffing is at Rs 11,900 crore. Firms that are into professional staffing have a margin as high as 30% to 35%. Temporary staffing globally is at $140 billion but on the domestic front, with more companies leasing out job requirements, 2.5% to 3% of the workforce is expected to be on contracts in India in the near future.
World Economic Forum Davos 2012: HCL Technologies to create 10,000 jobs in US & Europe over 5 years
DAVOS: In one of the biggest announcements related to job creation here at the World Economic Forum, Indian IT major HCL Technologies on Thursday said the company will create 10,000 local jobs in Europe and the US over the next five years.
Terming it a socially responsible business model for growth, HCL Tech Vice Chairman and CEO Vineet Nayar said the company would create these jobs for fresh engineers through partnerships with educational institutes, local governments, local communities, customers and others in these regions.
The announcement came a day after German Chancellor Angela Merkel said here at the WEF Annual Meeting 2012 that Europe would work toward becoming a benchmark investment destination on the global arena, but she would want foreign companies coming there to create jobs as well.
"In the context of a rapidly changing world, the expectation from businesses is evolving to balance pursuits of profit with social and individual imperatives in order to create a sustainable growth model," Nayar said.
"HCL is now taking those efforts to the next level by positively impacting the communities through local job creation and development of an ecosystem to support and encourage innovation. This initiative inverts some fundamental operational assumptions of the industry. HCL operates in by changing the prevalent dynamics around cost, skill base and innovation," he added.
"As our unique 'Employees First' culture has continued to grow and evolve, we've seen more and more HCL employees expressing the desire to see a truly socially responsible business model," he noted.
Nayar said HCL is taking various initiatives led by its investments in building Global Centres of Excellence, running dedicated recruitment and training programmes for college graduates and providing platforms for developing IT skill pool in local communities through collaboration with anchor customers and universities.
"In the months ahead, HCL will be working with 12 universities to offer a six-month elective course, as well as workshops on technology and management, and encouraging innovation through contests," he said.
"HCL's technology partners will also join hands in this initiative to provide training in upcoming technologies so that the talent deficit in these areas gets addressed. The company is working closely with government agencies to enlist their support in developing these ecosystems," he added.
The company said that a pilot programme started on these lines across five HCL centres in the US and EU has already shown early signs of success.
HCL group is a USD 6 billion, leading global technology and IT enterprise comprising two companies listed in India, HCL Technologies and HCL Infosystems.
Terming it a socially responsible business model for growth, HCL Tech Vice Chairman and CEO Vineet Nayar said the company would create these jobs for fresh engineers through partnerships with educational institutes, local governments, local communities, customers and others in these regions.
The announcement came a day after German Chancellor Angela Merkel said here at the WEF Annual Meeting 2012 that Europe would work toward becoming a benchmark investment destination on the global arena, but she would want foreign companies coming there to create jobs as well.
"In the context of a rapidly changing world, the expectation from businesses is evolving to balance pursuits of profit with social and individual imperatives in order to create a sustainable growth model," Nayar said.
"HCL is now taking those efforts to the next level by positively impacting the communities through local job creation and development of an ecosystem to support and encourage innovation. This initiative inverts some fundamental operational assumptions of the industry. HCL operates in by changing the prevalent dynamics around cost, skill base and innovation," he added.
"As our unique 'Employees First' culture has continued to grow and evolve, we've seen more and more HCL employees expressing the desire to see a truly socially responsible business model," he noted.
Nayar said HCL is taking various initiatives led by its investments in building Global Centres of Excellence, running dedicated recruitment and training programmes for college graduates and providing platforms for developing IT skill pool in local communities through collaboration with anchor customers and universities.
"In the months ahead, HCL will be working with 12 universities to offer a six-month elective course, as well as workshops on technology and management, and encouraging innovation through contests," he said.
"HCL's technology partners will also join hands in this initiative to provide training in upcoming technologies so that the talent deficit in these areas gets addressed. The company is working closely with government agencies to enlist their support in developing these ecosystems," he added.
The company said that a pilot programme started on these lines across five HCL centres in the US and EU has already shown early signs of success.
HCL group is a USD 6 billion, leading global technology and IT enterprise comprising two companies listed in India, HCL Technologies and HCL Infosystems.
Wednesday, January 25, 2012
Stronger Rupee brings relief to Paint companies
KOLKATA: The strengthening of the rupee has brought some respite to paint manufacturers. The price of titanium dioxide, one of the key ingredients of paint, is expected to come down which will bring some relief to paint companies. In December 2011, most of the paint companies had taken a price hike between 2%-4 %.
The size of the Indian paint industry is around Rs 23,000 crore. Of this, decorative paint constitutes Rs 17,000 crore while the industrial paint constitutes Rs 7,000 crore. On an average , raw materials constitute 56% of the total expenditure in paint companies. Titanium dioxide is one of the major raw materials and fluctuations in its prices have a direct impact on the cost of production.
Talking to ET, Ramanath V Akula, president (decorative) at Nippon Paint (India), said: "The strengthening of the rupee has to some extent brought some relief but the impact will not much at this level. If rupee comes down to Rs 45-46 level against dollar, we will have considerable benefit. The currency has depreciated by 15% in the October-December 2011 period , which has significantly affected the third quarter performance of the companies."
The companies had witnessed a 20-22 % growth in the first half. "But in the third quarter, demand slumped due to inflation and a high interest rate. A high input cost added to the woes which forced the companies to take a price hike. This had an impact on demand in the third quarter and it went down to 18%," said Akula, the president of Indian Paints Association.
Abhijit Roy, chief operating officer of Rs 2,500-crore Berger Paints, said that though the price of titanium dioxide had cooled off in November last, it started firming up from the middle of December. "The price of titanium dioxide is hovering around $3,600 per tonne, which is on the higher side.
Though we had expected that the strengthening of rupee would have some impact on input cost but a sudden price rise in titanium dioxide is likely to negate that. Even price of pthalic anhydride, which is also imported, is on the rise. If rupee strengthens further it will be good for us. Otherwise we will have to take a price hike in April depending on the impact of Union budget which will be tables in March.
Already our margins are under pressure." Roy said.Sandeep Sarda, executive director and CEO of Shalimar Paints feel that an appreciating rupee will definitely have a positive impact on the company's import bill. "If this trend continues, the fourth quarter will be a better one," Sarda said.
The size of the Indian paint industry is around Rs 23,000 crore. Of this, decorative paint constitutes Rs 17,000 crore while the industrial paint constitutes Rs 7,000 crore. On an average , raw materials constitute 56% of the total expenditure in paint companies. Titanium dioxide is one of the major raw materials and fluctuations in its prices have a direct impact on the cost of production.
Talking to ET, Ramanath V Akula, president (decorative) at Nippon Paint (India), said: "The strengthening of the rupee has to some extent brought some relief but the impact will not much at this level. If rupee comes down to Rs 45-46 level against dollar, we will have considerable benefit. The currency has depreciated by 15% in the October-December 2011 period , which has significantly affected the third quarter performance of the companies."
The companies had witnessed a 20-22 % growth in the first half. "But in the third quarter, demand slumped due to inflation and a high interest rate. A high input cost added to the woes which forced the companies to take a price hike. This had an impact on demand in the third quarter and it went down to 18%," said Akula, the president of Indian Paints Association.
Abhijit Roy, chief operating officer of Rs 2,500-crore Berger Paints, said that though the price of titanium dioxide had cooled off in November last, it started firming up from the middle of December. "The price of titanium dioxide is hovering around $3,600 per tonne, which is on the higher side.
Though we had expected that the strengthening of rupee would have some impact on input cost but a sudden price rise in titanium dioxide is likely to negate that. Even price of pthalic anhydride, which is also imported, is on the rise. If rupee strengthens further it will be good for us. Otherwise we will have to take a price hike in April depending on the impact of Union budget which will be tables in March.
Already our margins are under pressure." Roy said.Sandeep Sarda, executive director and CEO of Shalimar Paints feel that an appreciating rupee will definitely have a positive impact on the company's import bill. "If this trend continues, the fourth quarter will be a better one," Sarda said.
Bihar emerging as brewery hub
JAIPUR: Bihar is emerging as a brewery hub with major domestic and foreign firms setting up production units in the state due to availability of cheap labour and raw materials coupled with improved law and order and investment-friendly government policies.
"Big investments are coming up in this sector. In the coming years we will emerge as a big player in brewery business," said C.K. Mishra, principal secretary, department of industries, Bihar.
He said major domestic and foreign brewery firms are in the process to set up new production units in the state.
"Three major firms - United Breweries, Danish Brewery Company Carlsberg Group and Cobra Beer - are in the process to set up new units and will start production this year," Mishra told reporters. Mishra was in Jaipur to attend the three-day Pravasi Bharatiya Divas, the annual congregation of the Indian diaspora.
Vijay Mallya-promoted United Breweries (UB), which controls nearly half of India's beer market, is setting up a new unit near Bihar capital Patna.
"Construction on the new unit has already started," said Mishra.
United Breweries is also setting up a production unit to make litchi-flavoured wine. The company has leased litchi gardens and is setting up processing units in Muzaffarpur district of Bihar.
Almost 70 per cent of litchis produced in India come from Muzaffarpur and neighbouring districts. Litchi is a sweet, pulpy and juicy fruit. The most popular variety of the fruit called "shahi litchi" is largely grown in the Muzaffarpur area.
The company plans to produce litchi-flavoured wine by mixing pulpy extracts of the fruit with various types of spirits.
Cobra Beer, a company run by London-based NRI Lord Karan Bilimoria, is in an advanced state of setting up a new unit and targets more than tripling its production capacity in the state by next year.
"We are upgrading and expanding our brewery in Bihar. We are increasing the capacity to four million cases by February from two million now. By the same time next year the capacity will more than triple to seven million cases," Bilimoria told IANS.
Danish brewing company Carlsberg Group also plans to set up a production unit in the state.
"Carlsberg is looking for land near Hajipur in Vaishali district," said Mishra, adding the government was helping the company in getting land and setting up the unit.
On proposed investments by these companies, Mishra said, "Normally Rs.300 crore to Rs.400 crore investments is required for setting up a brewery plant in the state. In each of these plants, the investment will be in this range."
Brewery companies are investing heavily in Bihar because of abundance of grains and cheap labour available in the state. Grains like barley and wheat, largely used in brewing beer, is produced in abundance in the state.
Chief Minister Nitish Kumar's effort to improve law and order in the state has sent a positive signal to investors.
Companies like Cobra Beer plan to make Bihar its production hub and supply the produce in other states.
Beer consumption in domestic markets in Bihar has increased sharply in the last few years. Beer consumption in the state has risen 10 times in the past seven years. As per industry estimates, annual consumption is 700,000 cases.
"Big investments are coming up in this sector. In the coming years we will emerge as a big player in brewery business," said C.K. Mishra, principal secretary, department of industries, Bihar.
He said major domestic and foreign brewery firms are in the process to set up new production units in the state.
"Three major firms - United Breweries, Danish Brewery Company Carlsberg Group and Cobra Beer - are in the process to set up new units and will start production this year," Mishra told reporters. Mishra was in Jaipur to attend the three-day Pravasi Bharatiya Divas, the annual congregation of the Indian diaspora.
Vijay Mallya-promoted United Breweries (UB), which controls nearly half of India's beer market, is setting up a new unit near Bihar capital Patna.
"Construction on the new unit has already started," said Mishra.
United Breweries is also setting up a production unit to make litchi-flavoured wine. The company has leased litchi gardens and is setting up processing units in Muzaffarpur district of Bihar.
Almost 70 per cent of litchis produced in India come from Muzaffarpur and neighbouring districts. Litchi is a sweet, pulpy and juicy fruit. The most popular variety of the fruit called "shahi litchi" is largely grown in the Muzaffarpur area.
The company plans to produce litchi-flavoured wine by mixing pulpy extracts of the fruit with various types of spirits.
Cobra Beer, a company run by London-based NRI Lord Karan Bilimoria, is in an advanced state of setting up a new unit and targets more than tripling its production capacity in the state by next year.
"We are upgrading and expanding our brewery in Bihar. We are increasing the capacity to four million cases by February from two million now. By the same time next year the capacity will more than triple to seven million cases," Bilimoria told IANS.
Danish brewing company Carlsberg Group also plans to set up a production unit in the state.
"Carlsberg is looking for land near Hajipur in Vaishali district," said Mishra, adding the government was helping the company in getting land and setting up the unit.
On proposed investments by these companies, Mishra said, "Normally Rs.300 crore to Rs.400 crore investments is required for setting up a brewery plant in the state. In each of these plants, the investment will be in this range."
Brewery companies are investing heavily in Bihar because of abundance of grains and cheap labour available in the state. Grains like barley and wheat, largely used in brewing beer, is produced in abundance in the state.
Chief Minister Nitish Kumar's effort to improve law and order in the state has sent a positive signal to investors.
Companies like Cobra Beer plan to make Bihar its production hub and supply the produce in other states.
Beer consumption in domestic markets in Bihar has increased sharply in the last few years. Beer consumption in the state has risen 10 times in the past seven years. As per industry estimates, annual consumption is 700,000 cases.
UB Group won't use alcohol assets for Kingfisher: CFO
MUMBAI: UB Group's overseas alcohol assets won't be used to raise funds for the Indian conglomerate's struggling Kingfisher Airlines Ltd subsidiary, a UB executive said on Monday, adding that the long-planned share listing was not imminent.
UB, whose interests span alcohol, airlines and sports teams, is under pressure to find a solution to Kingfisher's financial troubles as the carrier struggles to meet interest payments.
"Each of our businesses operates independently and no transfer of resources is envisaged from one operating entity to another," UB Group Chief Financial Officer Ravi Nedungadi told Reuters. "From the day we acquired Whyte & Mackay, we said we would consider listing it at some point. The point is not now."
UB, controlled by the flamboyant Indian businessman Vijay Mallaya, acquired Scottish whisky brand Whyte & Mackay (W&M) in 2007 for 595 million pounds ($909 million).
Kingfisher, hit by rising costs, fierce competition and a slowdown in the Indian economy, was forced to cancel flights late last year and is having trouble making interest payments and paying salaries to employees.
The airline owed 600 million rupees ($11.6 million) in service taxes as of last Tuesday. It also owes the government about 1.3 billion rupees of income tax deducted from employee salaries.
"Any plans we may have for W&M have nothing to do with Kingfisher Airlines," UB Group spokesman Prakash Mirpuri told Reuters. "However, there are no immediate plans in the offing."
Shares in United Breweries Ltd, the UB Group's flagship company, were up 5.3 percent at 468 rupees at 1230 (0630 GMT), having risen as much as 6 percent in early trading. The overall market was down 0.34 percent.
Shares in Kingfisher, which lost almost 70 percent of their value in 2011, were down 2.7 percent at 23.10 rupees.
UB, whose interests span alcohol, airlines and sports teams, is under pressure to find a solution to Kingfisher's financial troubles as the carrier struggles to meet interest payments.
"Each of our businesses operates independently and no transfer of resources is envisaged from one operating entity to another," UB Group Chief Financial Officer Ravi Nedungadi told Reuters. "From the day we acquired Whyte & Mackay, we said we would consider listing it at some point. The point is not now."
UB, controlled by the flamboyant Indian businessman Vijay Mallaya, acquired Scottish whisky brand Whyte & Mackay (W&M) in 2007 for 595 million pounds ($909 million).
Kingfisher, hit by rising costs, fierce competition and a slowdown in the Indian economy, was forced to cancel flights late last year and is having trouble making interest payments and paying salaries to employees.
The airline owed 600 million rupees ($11.6 million) in service taxes as of last Tuesday. It also owes the government about 1.3 billion rupees of income tax deducted from employee salaries.
"Any plans we may have for W&M have nothing to do with Kingfisher Airlines," UB Group spokesman Prakash Mirpuri told Reuters. "However, there are no immediate plans in the offing."
Shares in United Breweries Ltd, the UB Group's flagship company, were up 5.3 percent at 468 rupees at 1230 (0630 GMT), having risen as much as 6 percent in early trading. The overall market was down 0.34 percent.
Shares in Kingfisher, which lost almost 70 percent of their value in 2011, were down 2.7 percent at 23.10 rupees.
No immediate plans to list Whyte & Mackay: UB Group
NEW DELHI: Vijay Mallya-led UB Group today said the company has no immediate plans to list its UK-based arm Whyte & Mackay although it had in the past stated such a step was a part of an overall future strategy.
"We have talked about listing W&M right from the time of acquisition. However, there are no immediate plans in the offing," a spokesperson of the UB Group told PTI.
United Spirits Ltd, a UB Group firm, had acquired Whyte & Mackay for 595 million pounds in 2007.
Reacting to reports of the group leveraging on the proceeds from a possible listing of W&M to bail out ailing group firm Kingfisher Airlines, the spokesperson said: "We would like to clarify that any plans we may have for Whyte & Mackay has nothing to do with Kingfisher Airlines."
The group, which has interests in diverse verticals including alcohol, airlines and sports teams, is under stress to find a solution for Kingfisher Airlines' financial troubles as the carrier struggles to meet interest payments.
In December 2011, the government had informed Parliament that Kingfisher Airlines has an outstanding loan of about Rs 6,419 crore, and the lenders include SBI, IDBI Bank, Punjab National Bank, Bank of India and Bank of Baroda.
Recently Mallya, who is also a Rajya Sabha MP, has held a series of meetings with top government functionaries, including Finance Minister Pranab Mukherjee, to work out steps to keep the airline afloat.
Shares of United Spirits Ltd were trading at Rs 630.50 on the BSE in the late afternoon, up 5.03 per cent from its previous close.
"We have talked about listing W&M right from the time of acquisition. However, there are no immediate plans in the offing," a spokesperson of the UB Group told PTI.
United Spirits Ltd, a UB Group firm, had acquired Whyte & Mackay for 595 million pounds in 2007.
Reacting to reports of the group leveraging on the proceeds from a possible listing of W&M to bail out ailing group firm Kingfisher Airlines, the spokesperson said: "We would like to clarify that any plans we may have for Whyte & Mackay has nothing to do with Kingfisher Airlines."
The group, which has interests in diverse verticals including alcohol, airlines and sports teams, is under stress to find a solution for Kingfisher Airlines' financial troubles as the carrier struggles to meet interest payments.
In December 2011, the government had informed Parliament that Kingfisher Airlines has an outstanding loan of about Rs 6,419 crore, and the lenders include SBI, IDBI Bank, Punjab National Bank, Bank of India and Bank of Baroda.
Recently Mallya, who is also a Rajya Sabha MP, has held a series of meetings with top government functionaries, including Finance Minister Pranab Mukherjee, to work out steps to keep the airline afloat.
Shares of United Spirits Ltd were trading at Rs 630.50 on the BSE in the late afternoon, up 5.03 per cent from its previous close.
Amul to hot up frozen yogurt market
VADODARA: Dairy major Amul is now eyeing the growing frozen yogurt market in the country. The Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets brand Amul has launched frozen yogurt - a first-of-its-kind product offering from Amul's basket. Frozen yogurt, a tangy combination of ice-cream with probiotic yogurt, is a globally established category.
Amul's move comes at a time when a string of frozen yogurt chains are entering the country riding on the healthier , guilt-free dessert plank creating a space within the traditional ice-cream market.
If US-based yogurt brand Red Mango has made a debut in the Indian market this month following the Canadian yogurt chain Kiwi Kiss, which had forayed in the Indian market last year, Singapore-headquartered yogurt brand Berrylite is firming up its plans to open outlets soon.
But home-grown Amul is set to give these brands a run for their money as it plans to launch the new product across 70,000 outlets across the country in the first week of February against nearly 40 outlets managed by the international brands. India's organized ice-cream market is estimated at Rs 1,200 crore and Amul currently commands 40% market share.
With the launch of this new product under the brand name - Amul Flaavyo - Amul wants to revolutionize the ice-cream market while becoming the "first mover" in this new category among Indian companies. "We are expecting that the frozen yogurt highway would account for 5% of total ice-cream sales," GCMMF's managing director R S Sodhi told reporters.
"As many are becoming health conscious, the market for frozen yoghurt is going to grow. We estimate that it would expand the market by increasing customer base. Essentially it would not only convert non-consumers of icecream into eaters but also increase frequency of ice-cream consumption," Sodhi said.
The Amul frozen yoghurt is presently available at select Amul scooping parlours. Amul has a chain of 500 scooping parlours across the country. Initially, the dairy giant has introduced the product at its scooping parlours at Rs 35 per scoop (against Rs 100 per scoop charged by international brands).
"In February first week, we will launch consumer packs across the country while making Amul Flaavyo Frozen Yogurt available in smaller packs in two flavours - mango and strawberry," Sodhi said.
Amul's move comes at a time when a string of frozen yogurt chains are entering the country riding on the healthier , guilt-free dessert plank creating a space within the traditional ice-cream market.
If US-based yogurt brand Red Mango has made a debut in the Indian market this month following the Canadian yogurt chain Kiwi Kiss, which had forayed in the Indian market last year, Singapore-headquartered yogurt brand Berrylite is firming up its plans to open outlets soon.
But home-grown Amul is set to give these brands a run for their money as it plans to launch the new product across 70,000 outlets across the country in the first week of February against nearly 40 outlets managed by the international brands. India's organized ice-cream market is estimated at Rs 1,200 crore and Amul currently commands 40% market share.
With the launch of this new product under the brand name - Amul Flaavyo - Amul wants to revolutionize the ice-cream market while becoming the "first mover" in this new category among Indian companies. "We are expecting that the frozen yogurt highway would account for 5% of total ice-cream sales," GCMMF's managing director R S Sodhi told reporters.
"As many are becoming health conscious, the market for frozen yoghurt is going to grow. We estimate that it would expand the market by increasing customer base. Essentially it would not only convert non-consumers of icecream into eaters but also increase frequency of ice-cream consumption," Sodhi said.
The Amul frozen yoghurt is presently available at select Amul scooping parlours. Amul has a chain of 500 scooping parlours across the country. Initially, the dairy giant has introduced the product at its scooping parlours at Rs 35 per scoop (against Rs 100 per scoop charged by international brands).
"In February first week, we will launch consumer packs across the country while making Amul Flaavyo Frozen Yogurt available in smaller packs in two flavours - mango and strawberry," Sodhi said.
Branded pulses being launched by Adani Wilmar, Lakshmi Energy Foods
After Tata's it is now Adani Wilmar, Lakshmi Energy Foods which will be launching varieties of branded pulses/ dals on a pan India basis. Pulses are a rich source of protein and an integral part of an Indian meal. The sector is in the novice stage with a strong presence of regional players who are also on an expansion spree.
Pulsesconsumption in India is currently about 17.5 million tonne annually, of which, negligible quantity of pulsesare sold in branded form. Further,small quantity is sold by Kirana stores and modern trade as their in-store brands.
"We see big future in branding of all commodities . Just as we have witnessed consumption of edible oil in branded form, we anticipate a similar conversion from purchase of loose unbranded pulsesto branded form," said Adani Wilmar, MD, Pranav Adani.
The company will be launching the brand in north India,selling under the Jubilee brand name. Moong, Masoor, Arhar, Urad, Chana and Rajma pulses(including both whole and split variants) that cumulatively comprise over 80% of the market would be initially launched.
Eventually the company plan to extend the portfolio to include besan and other value added products. As per industry source Adani is planning to invest Rs 100 crore for the processing unit with a capacity to mill 600 tonnes per day at either Kolkata or Kanpur.
Similarly, leading basmati player from Punjab ,Lakshmi Overseas Industries Ltd will be investing Rs 50 crore to set up a pulse processing mill of 200 TPD at Khamanon near Ludhiana.
"India is the largest producer,consumer and importer of pulses. The regional players limit themselves to one or two types of pulsesin their portfolio leaving a huge scope for a national player to enter and revolutionize the way the industry works," said Lakshmi Overseas Industries Ltd, MD, Balbir Singh Uppal.
In December 2010, Tata Chemicals launched popular varieties of pulses- chana, toor, urad and moong (including whole green moong and green chilka) under the i-Shakti Dals.Working along with farmers the company targeted to increase production of pulsesin India and help bridge the existing gap between demand and supply of pulsesin the country.
"We are providing consumer un-polished pulseswith low moisture content ensuring speedy cooking and increased shelf life of 6 months," said Tata Chemicals, consumer products business, chief operating officer, Ashvini Hiran who added that the demand was good across tier 1 and tier 2 cities where sales were through modern trade channels and malls.
Established regional players charge Rs 6 to Rs 10 a kg as a premium. With no major value addition apart from cleaning and polishing (leather polishing or water based polishing) to bring the shine in the pulse, more investment is coming in the sector.
In northern India the major pulsesbrand were Rajdhani, Mangat Ram Dal Mills, in Eastern India Taj agro international, Daily were popular whereas Lakshmi, Angur and Rantio were popular varieties of Western India.
Nandi brand and Shree Gold brand of the Kaleesuwari Refinery Pvt Ltd were household name in South India. Central Indian pulse brand included Hasty Tasty, Swach and Mani.
Processing over 65 tpd pulses, Gujarat based Patel Chaturbhai Ranchhodbhai & Co, is the market leader in pigeon peas (tur dal/arhar dal) in the state selling under the brand name of Angur.
"We see an annual growth of 10% to 15% and are expanding our capacity," said the company's partner, Piyush Ratilal Patel.He added that the company was only focusing on selling pigeon peas and were not expanding the portfolio. The company is selling the branded pulse in retail outlets of Reliance, Big Bazaar, Star Bazaar, Dmart and others.
Pulsesconsumption in India is currently about 17.5 million tonne annually, of which, negligible quantity of pulsesare sold in branded form. Further,small quantity is sold by Kirana stores and modern trade as their in-store brands.
"We see big future in branding of all commodities . Just as we have witnessed consumption of edible oil in branded form, we anticipate a similar conversion from purchase of loose unbranded pulsesto branded form," said Adani Wilmar, MD, Pranav Adani.
The company will be launching the brand in north India,selling under the Jubilee brand name. Moong, Masoor, Arhar, Urad, Chana and Rajma pulses(including both whole and split variants) that cumulatively comprise over 80% of the market would be initially launched.
Eventually the company plan to extend the portfolio to include besan and other value added products. As per industry source Adani is planning to invest Rs 100 crore for the processing unit with a capacity to mill 600 tonnes per day at either Kolkata or Kanpur.
Similarly, leading basmati player from Punjab ,Lakshmi Overseas Industries Ltd will be investing Rs 50 crore to set up a pulse processing mill of 200 TPD at Khamanon near Ludhiana.
"India is the largest producer,consumer and importer of pulses. The regional players limit themselves to one or two types of pulsesin their portfolio leaving a huge scope for a national player to enter and revolutionize the way the industry works," said Lakshmi Overseas Industries Ltd, MD, Balbir Singh Uppal.
In December 2010, Tata Chemicals launched popular varieties of pulses- chana, toor, urad and moong (including whole green moong and green chilka) under the i-Shakti Dals.Working along with farmers the company targeted to increase production of pulsesin India and help bridge the existing gap between demand and supply of pulsesin the country.
"We are providing consumer un-polished pulseswith low moisture content ensuring speedy cooking and increased shelf life of 6 months," said Tata Chemicals, consumer products business, chief operating officer, Ashvini Hiran who added that the demand was good across tier 1 and tier 2 cities where sales were through modern trade channels and malls.
Established regional players charge Rs 6 to Rs 10 a kg as a premium. With no major value addition apart from cleaning and polishing (leather polishing or water based polishing) to bring the shine in the pulse, more investment is coming in the sector.
In northern India the major pulsesbrand were Rajdhani, Mangat Ram Dal Mills, in Eastern India Taj agro international, Daily were popular whereas Lakshmi, Angur and Rantio were popular varieties of Western India.
Nandi brand and Shree Gold brand of the Kaleesuwari Refinery Pvt Ltd were household name in South India. Central Indian pulse brand included Hasty Tasty, Swach and Mani.
Processing over 65 tpd pulses, Gujarat based Patel Chaturbhai Ranchhodbhai & Co, is the market leader in pigeon peas (tur dal/arhar dal) in the state selling under the brand name of Angur.
"We see an annual growth of 10% to 15% and are expanding our capacity," said the company's partner, Piyush Ratilal Patel.He added that the company was only focusing on selling pigeon peas and were not expanding the portfolio. The company is selling the branded pulse in retail outlets of Reliance, Big Bazaar, Star Bazaar, Dmart and others.
MandhanaIndustries, Landmark Group ink deal to sell Being Human apparel
NEW DELHI: Mumbai-based textile firm Mandhana Industries, which has the exclusive license for Salman Khan's 'Being Human' apparel range worldwide, has signed up with Dubai-based Landmark Group to sell the clothing line in Middle East from April this year.
Mandhana Industries that has rights to manufacture, distribute and retail 'Being Human' range of garments, is also in talks with retailers in Europe while it gets ready to open flagship stores for the brand in India by March this year.
"We have tied up with Landmark Group to retail 'Being Human' apparel at over 200 stores operated by Landmark under Iconic and Splash brands (in Middle East)," Mandhana Industries, Senior-Vice President Finance and Corporate Affairs Mitesh Shah told PTI.
The brand will be launched in the region by April this year but before that it will be launched in India, he added.
As a part of an agreement between Mandhana and Landmark, the range will be sold countries in the region, including UAE, Egypt, Bahrain, Saudi Arabia, Oman, Kuwait, Jordan, Lebanon and Qatar.
Commenting on other overseas plans, Shah said: "We are also engaged in discussions with few retailers in Europe and expect to launch the label in countries like France, Germany and UK within this year."
In India, the company had planned to launch the brand last year but after delays it is likely to take place by March this year.
"To begin with we plan to open 6-7 flagship stores in India which will be operated by Mandhana and we are also in talks with other retailers to sell the range," Shah added.
The Being Human Foundation is founded by Bollywood actor Salman Khan to uplift the underprivileged. Mandhana, on the other hand supplies textiles and garments to leading Indian and international apparel manufacturers and retailers.
Mandhana Industries that has rights to manufacture, distribute and retail 'Being Human' range of garments, is also in talks with retailers in Europe while it gets ready to open flagship stores for the brand in India by March this year.
"We have tied up with Landmark Group to retail 'Being Human' apparel at over 200 stores operated by Landmark under Iconic and Splash brands (in Middle East)," Mandhana Industries, Senior-Vice President Finance and Corporate Affairs Mitesh Shah told PTI.
The brand will be launched in the region by April this year but before that it will be launched in India, he added.
As a part of an agreement between Mandhana and Landmark, the range will be sold countries in the region, including UAE, Egypt, Bahrain, Saudi Arabia, Oman, Kuwait, Jordan, Lebanon and Qatar.
Commenting on other overseas plans, Shah said: "We are also engaged in discussions with few retailers in Europe and expect to launch the label in countries like France, Germany and UK within this year."
In India, the company had planned to launch the brand last year but after delays it is likely to take place by March this year.
"To begin with we plan to open 6-7 flagship stores in India which will be operated by Mandhana and we are also in talks with other retailers to sell the range," Shah added.
The Being Human Foundation is founded by Bollywood actor Salman Khan to uplift the underprivileged. Mandhana, on the other hand supplies textiles and garments to leading Indian and international apparel manufacturers and retailers.
Godrej Consumer plans to raise Rs 685 cr from Temasek
MUMBAI: Personal care products maker Godrej Consumer Ltd had decided to sell a 4.9% stake to Baytree Investments, an arm of Singapore-based investment firm Temasek, to raise Rs 685 crore for acquisitions and reduce debts.
Baytree will subscribe over 1.67 crore shares at Rs 410 a share on a preferential allotment basis, subject to the signing of a share subscription agreement and shareholders approval.
"The fund will be used for further acquisitions as well as reduce debt in the company," chairman Adi Godrej said on Saturday. "If we had to do QIP, there would have been significant cost. Hence, we chose the preferential allotment route," he said.
The fund raising plans followed after the maker of Cinthol and Goodknight announced on Saturday it will acquire 60 % stake in Latin America's Cosmetica Nacional, a hair care and cosmetics company for an undisclosed sum. However, the company said the deal is nine times the company's Ebitda of 20% and with its annual sales of 36 million, the deal size comes to roughly Rs 200 crore.
The Chilean firm, which owns brands such as Ilicit, U2 and Pamela Grant exports to over seven countries in the region and will serve as another distribution platform in Latin America. This is GCPL's third buy in Latin America after acquisition of Argencos and Issue two years ago. Godrej also said he continues to look for buys in Africa, Asia and Latin America.
"The acquisition will give the company a strong leadership position in the particular region. In addition, the fund raising plan will help them acquire more companies," said Anand Mour, senior analyst at Ambit Capital.
In the last four years, the Indian soaps, deodorants and hair colour maker has acquired nine firms including Indonesia's household care firm PT Megasari Makmur Group, Nigerian personal care company Tura and two South African haircare brands, Rapidol and Kinky.
Apart from acquisitions, GCPL also merged Godrej Household Products with itself and earned profits by selling Sara Lee's brands where it was a licensee. The company also announced its third quarter numbers posting a higher-than-estimated 41% rise in October-December quarter profit despite foreign exchange losses.
The company posted a net profit after minority interest of Rs 272 crore during the quarter. Its revenue rose 36% from a year ago to Rs 1,344 crore helped by global acquisitions and new product launches in domestic business.
The company incurred a foreign exchange loss of `6 crore compared with a forex loss of Rs 1 crore a year ago. Godrej Consumer had 20% sales growth in its domestic business on account of higher volume or consumer demand with net profit increase of 12%.
Baytree will subscribe over 1.67 crore shares at Rs 410 a share on a preferential allotment basis, subject to the signing of a share subscription agreement and shareholders approval.
"The fund will be used for further acquisitions as well as reduce debt in the company," chairman Adi Godrej said on Saturday. "If we had to do QIP, there would have been significant cost. Hence, we chose the preferential allotment route," he said.
The fund raising plans followed after the maker of Cinthol and Goodknight announced on Saturday it will acquire 60 % stake in Latin America's Cosmetica Nacional, a hair care and cosmetics company for an undisclosed sum. However, the company said the deal is nine times the company's Ebitda of 20% and with its annual sales of 36 million, the deal size comes to roughly Rs 200 crore.
The Chilean firm, which owns brands such as Ilicit, U2 and Pamela Grant exports to over seven countries in the region and will serve as another distribution platform in Latin America. This is GCPL's third buy in Latin America after acquisition of Argencos and Issue two years ago. Godrej also said he continues to look for buys in Africa, Asia and Latin America.
"The acquisition will give the company a strong leadership position in the particular region. In addition, the fund raising plan will help them acquire more companies," said Anand Mour, senior analyst at Ambit Capital.
In the last four years, the Indian soaps, deodorants and hair colour maker has acquired nine firms including Indonesia's household care firm PT Megasari Makmur Group, Nigerian personal care company Tura and two South African haircare brands, Rapidol and Kinky.
Apart from acquisitions, GCPL also merged Godrej Household Products with itself and earned profits by selling Sara Lee's brands where it was a licensee. The company also announced its third quarter numbers posting a higher-than-estimated 41% rise in October-December quarter profit despite foreign exchange losses.
The company posted a net profit after minority interest of Rs 272 crore during the quarter. Its revenue rose 36% from a year ago to Rs 1,344 crore helped by global acquisitions and new product launches in domestic business.
The company incurred a foreign exchange loss of `6 crore compared with a forex loss of Rs 1 crore a year ago. Godrej Consumer had 20% sales growth in its domestic business on account of higher volume or consumer demand with net profit increase of 12%.
ITC may invest up to Rs 1,000 cr in 4 years on FMCG business
NEW DELHI: Diversified business group ITC is understood to be gearing up to invest up to Rs 1,000 crore in the FMCG segment in the next four years which will include setting up new facilities and enhancing existing capacities.
According to UBS Investment Research, which had met the company's top management recently, ITC is planning to invest Rs 600 crore to Rs 1,000 crore in the next three years.
The Kolkata-based company did not confirm the figure but said it will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity.
"Given the rapid growth of the fast moving consumer goods segment in India which is expected to triple in size in the next 10 years, ITC is pursuing an aggressive investment led growth strategy,"ITC Executive Director Kurush Grant told PTI.
Without confirming how much the company plans to invest, Grant said ITC is investing heavily in technology and manufacturing, fixed assets, brand building, R&D, product development and consumer insights to build market standing.
"We will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity," he added.
The UBS Investment Research report, however, said "(ITC's) losses in other FMCG are coming down, but they (ITC management) warn that the new food businesses will involve higher investments; Rs600 crore to Rs 1,000 crore over the next 3-4 years."
Under the FMCG division, ITC sells branded packaged foods under the brands Bingo, Sunfeast and Yippee among others, personal care range like Vivel and Fiama di Wills apart from stationery products, cigarettes and lifestyle apparel.
Over the last few years company has rapidly scaled up its FMCG businesses and has entered in new categories over the last few years like instant noodles, pasta, biscuits among others. In the quarter ended December 31, 2011 its FMCG business registered a revenue of Rs 4,603.66 crore, witnessing a growth of 19 per cent over the previous fiscal.
"This expansion of the FMCG portfolio not only requires establishment of new manufacturing operations but also creation of efficient supply chain, enhancement of logistics infrastructure and efficient multiple distribution channels across multiple locations," Grant said.
According to UBS Investment Research, which had met the company's top management recently, ITC is planning to invest Rs 600 crore to Rs 1,000 crore in the next three years.
The Kolkata-based company did not confirm the figure but said it will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity.
"Given the rapid growth of the fast moving consumer goods segment in India which is expected to triple in size in the next 10 years, ITC is pursuing an aggressive investment led growth strategy,"ITC Executive Director Kurush Grant told PTI.
Without confirming how much the company plans to invest, Grant said ITC is investing heavily in technology and manufacturing, fixed assets, brand building, R&D, product development and consumer insights to build market standing.
"We will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity," he added.
The UBS Investment Research report, however, said "(ITC's) losses in other FMCG are coming down, but they (ITC management) warn that the new food businesses will involve higher investments; Rs600 crore to Rs 1,000 crore over the next 3-4 years."
Under the FMCG division, ITC sells branded packaged foods under the brands Bingo, Sunfeast and Yippee among others, personal care range like Vivel and Fiama di Wills apart from stationery products, cigarettes and lifestyle apparel.
Over the last few years company has rapidly scaled up its FMCG businesses and has entered in new categories over the last few years like instant noodles, pasta, biscuits among others. In the quarter ended December 31, 2011 its FMCG business registered a revenue of Rs 4,603.66 crore, witnessing a growth of 19 per cent over the previous fiscal.
"This expansion of the FMCG portfolio not only requires establishment of new manufacturing operations but also creation of efficient supply chain, enhancement of logistics infrastructure and efficient multiple distribution channels across multiple locations," Grant said.
Kelme to enter India, appoints Global Overseas as partner
NEW DELHI: Spanish sportswear and fashion brand Kelme is entering India through a licensing and distribution agreement with Global Overseas and plans to open up to 10 stores during the first year of operations.
"India has been a part of our international plan for the last 3-4 years. Now, we are entering India in partnership with Global Overseas through a licensing and distribution arrangement," Kelme Director International Business Luca Gios told reporters.
Ghaziabad headquartered Global Overseas is a part of the Singapore-based Sports Fashion (SF). Kelme is owned by New Millennium Sports that has tie up with SF for Asia Pacific region. Elaborating on the plans for the Indian market, where the government had recently allowed 100 foreign direct investment in single brand retail, he said: "In the first year we plan to open 7-10 stores in the country. The first one has been set up in Delhi."
Gios said the decision to partner a local firm despite the opportunity to do it on its own is a part of Kelme's global strategy.
"We follow distribution and licensing model worldwide. You have to think globally and act locally," he said.
The agreement with Global Overseas also covers local manufacturing, he said.
"We will also give license to our partner here to locally manufacture some of the products. Local production should start in the next two to three months," he said.
The brand is present in 45 countries worldwide. Established in 1977, Kelme was the equipment sponsor of the Spanish Olympic team in 1992 Barcelona Olympic Games. It was also the sponsor of the Real Madrid football club from 1994 to 1998.
"India has been a part of our international plan for the last 3-4 years. Now, we are entering India in partnership with Global Overseas through a licensing and distribution arrangement," Kelme Director International Business Luca Gios told reporters.
Ghaziabad headquartered Global Overseas is a part of the Singapore-based Sports Fashion (SF). Kelme is owned by New Millennium Sports that has tie up with SF for Asia Pacific region. Elaborating on the plans for the Indian market, where the government had recently allowed 100 foreign direct investment in single brand retail, he said: "In the first year we plan to open 7-10 stores in the country. The first one has been set up in Delhi."
Gios said the decision to partner a local firm despite the opportunity to do it on its own is a part of Kelme's global strategy.
"We follow distribution and licensing model worldwide. You have to think globally and act locally," he said.
The agreement with Global Overseas also covers local manufacturing, he said.
"We will also give license to our partner here to locally manufacture some of the products. Local production should start in the next two to three months," he said.
The brand is present in 45 countries worldwide. Established in 1977, Kelme was the equipment sponsor of the Spanish Olympic team in 1992 Barcelona Olympic Games. It was also the sponsor of the Real Madrid football club from 1994 to 1998.
Canali buys 51% stake in Genesis JV
NEW DELHI: Italian luxury brand Canali has picked up 51% stake to form a joint venture with its Indian franchise, Genesis Luxury Fashion, two persons familiar with the matter said.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
Though Canali had the option to set up a wholly-owned subsidiary, following the government's decision last month to allow 100% foreign direct investment in single-brand retail, it has opted to stick to the previous ceiling.
A higher shareholding would have required it to mandatorily source 30% of its products from Indian small and medium enterprises, the persons quoted earlier explained.
Small and medium enterprises are defined as companies that have a total investment in plant and machinery not exceeding $1 million.
A Genesis Luxury Fashion spokesperson declined to comment on the JV plan, which is awaiting the government's clearance.
Canali is the first luxury brand to invest in India since the government removed the cap for foreign companies. Genesis, a franchise for several global luxury brands, has been operating five Canali stores in India - two in the National Capital Region, at the DLF Emporio Mall and at the Oberoi hotel in Gurgaon, and one each in Mumbai's Palladium mall, Hyderabad's Taj Krishna hotel and Bangalore's UB City mall.
"Canali is bullish about India and it might also venture into some of the smaller cities if good retail infrastructure comes up there," an industry expert, who works with various global luxury brands, said on condition of anonymity.
Global brands are increasingly eyeing India where the luxury market is growing at 20% a year and is expected to expand to $14.7 billion by 2015, from $5.8 billion, according to a recent report by CII and AT Kearney.
India has three million affluent households, defined as those with more than $100,000 (about Rs 50 lakh) of investable surplus, a global affluence study by research firm TNS said. The number of high net worth individuals, who have assets of $1 million or more, will more than double to 403,000 by 2015, Swiss wealth manager Julius Baer recently forecast.
LVMH co Sephora set for India foray
MUMBAI: French luxury goods conglomerate Moet Hennessy Louis Vuitton SA (LVMH) is likely to clinch a multi-brand retail deal with New Delhi-based Genesis Luxury Fashion, in which the former's private equity arm L Capital holds a significant minority stake. Genesis Luxury is expected to open doors for LVMH's subsidiary Sephora, a multi-brand beauty and personal care retailer, with a licensing deal as talks failed with other contenders like Reliance Retail and Parcos, said two separate sources familiar with the matter.
LVMH is finalizing plans for Sephora a little over a month after India deferred foreign direct investment (FDI) in multi-brand retail. The 20-billion-euro luxury group's discussion with Genesis also signals its deepening ties with the Indian company after L Capital last year picked up 25.5% equity in the Sanjay Kapoorowned firm, which operates single-brand stores Just Cavalli, Canali, Paul Smith and Jimmy Choo. LVMH has independent operations of its flagship Louis Vuitton stores in the country. When contacted by TOI, a spokesperson for Genesis Luxury Fashion declined comment on its partnership with LVMH to bring Sephora to India, adding they would talk about their plans in time.
Industry observers said Sephora's deal-making with Genesis would be innovative following the L Capital investment in the latter. L Capital is sponsored by LVMH and Groupe Arnault-the private holding company of business tycoon and LVMH chairman Bernard Arnault-managing assets worth over 900 million euros. The Sephora stores are likely to open by end of this year offering cosmetic, skin care, fragrance, bath and body, hair care across multiple brands. The retail chain also has a hugely popular private label brand in its name which is moderately priced as well as a strong online presence across markets. Sephora has over 1,200 stores globally.
LVMH has been scouting for a partner to unfurl its multibrand retail operations in India, and had held discussions with multiple suitors, including Reliance Retail, a part of India's largest private sector company Reliance Industries. One of the sources mentioned earlier said LVMH always seeks control over retail operations, and would have preferred Genesis given its existing investment ties. This would also provide the group enough flexibility to expand Sephora's India business.
Sephora and DFS (a dutyfree store chain) are the two multi-brand retail businesses of LVMH. The Paris-based group is betting big on the potential of its multi-brand channels in emerging markets like India. DFS has been in talks with the country's swanky new airports to start operations. The Indian beauty retail market is largely unorganized with department store chain such as Shoppers Stop and Lifestyle offering shop-in-shop outlets for most of the high-end brands operating in the segment. "The key challenges facing the industry are low consumer awareness, limited supply side push and product, infrastructure/retail channel availability. This is where a multi-brand outlet which offers a plethora of choices has a huge potential to succeed," said Neelesh Hundekari, principal at consulting firm AT Kearney.
An AT Kearney-CII report on the luxury market said the personal care segment in India is estimated at $280 million as of 2010 and growing at 22%. Typically, a female consumer dominated market in other countries, with a significant share of cosmetics and skin care, the Indian market stands out for its fragrance domination.
LVMH is finalizing plans for Sephora a little over a month after India deferred foreign direct investment (FDI) in multi-brand retail. The 20-billion-euro luxury group's discussion with Genesis also signals its deepening ties with the Indian company after L Capital last year picked up 25.5% equity in the Sanjay Kapoorowned firm, which operates single-brand stores Just Cavalli, Canali, Paul Smith and Jimmy Choo. LVMH has independent operations of its flagship Louis Vuitton stores in the country. When contacted by TOI, a spokesperson for Genesis Luxury Fashion declined comment on its partnership with LVMH to bring Sephora to India, adding they would talk about their plans in time.
Industry observers said Sephora's deal-making with Genesis would be innovative following the L Capital investment in the latter. L Capital is sponsored by LVMH and Groupe Arnault-the private holding company of business tycoon and LVMH chairman Bernard Arnault-managing assets worth over 900 million euros. The Sephora stores are likely to open by end of this year offering cosmetic, skin care, fragrance, bath and body, hair care across multiple brands. The retail chain also has a hugely popular private label brand in its name which is moderately priced as well as a strong online presence across markets. Sephora has over 1,200 stores globally.
LVMH has been scouting for a partner to unfurl its multibrand retail operations in India, and had held discussions with multiple suitors, including Reliance Retail, a part of India's largest private sector company Reliance Industries. One of the sources mentioned earlier said LVMH always seeks control over retail operations, and would have preferred Genesis given its existing investment ties. This would also provide the group enough flexibility to expand Sephora's India business.
Sephora and DFS (a dutyfree store chain) are the two multi-brand retail businesses of LVMH. The Paris-based group is betting big on the potential of its multi-brand channels in emerging markets like India. DFS has been in talks with the country's swanky new airports to start operations. The Indian beauty retail market is largely unorganized with department store chain such as Shoppers Stop and Lifestyle offering shop-in-shop outlets for most of the high-end brands operating in the segment. "The key challenges facing the industry are low consumer awareness, limited supply side push and product, infrastructure/retail channel availability. This is where a multi-brand outlet which offers a plethora of choices has a huge potential to succeed," said Neelesh Hundekari, principal at consulting firm AT Kearney.
An AT Kearney-CII report on the luxury market said the personal care segment in India is estimated at $280 million as of 2010 and growing at 22%. Typically, a female consumer dominated market in other countries, with a significant share of cosmetics and skin care, the Indian market stands out for its fragrance domination.
Tiffany's in talks with Reena Wadhwa for India entry
NEW DELHI: Iconic US jeweller Tiffany & Co is in talks to enter India through a 51% joint venture with actress-turned-luxury entrepreneur Reena Wadhwa, who already has a joint venture with Italian luxury brand Gucci, a person familiar with the negotiations said. "The deal is on the table now and could be signed soon," the person said.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Aditya Birla Nuvo contests tax liability
MUMBAI: Aditya Birla Nuvo, part of the $35 billion Aditya Birla Group, has filed a petition against the Income tax department over the tax liability of around Rs 8 crore.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
Nokia, Tata and LG are most trusted brands in India
NEW DELHI: Nokia, Tata and LG are amongst most trusted brands in India, said a survey Tuesday.
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
Blue Star expects financials to take a hit in next two quarters
HYDERABAD: Blue Star, India's largest central air-conditioning company, anticipates its financials in the next two quarters to be affected by the downtrend in commercial construction activity.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
India taken aback by Ikea reaction
NEW DELHI: India has expressed surprise at top homeware retailer Ikea's purported thumbs-down on setting up shop in the country, saying the Swedish firm's misgivings about local sourcing clauses in the recent policy on single-brand retail needn't be a deal breaker.
Commerce and Industry Minister Anand Sharma, whose ministry put together the new policy that permits 100% foreign ownership in the single-brand retail sector, appeared taken aback by reports that suggested Ikea was considering withholding its entry into India because of requirements such as sourcing of 30% goods from local small and medium companies.
"I don't know where the problem is. The chief of Ikea had told me only last year that they were already sourcing 30% of their global wares from India and the figure will only increase in the future," he told ET.
On Tuesday, news reports suggested that Ikea, which for long symbolised the type of overseas company that would be attracted by the policy change, had found the conditions on local sourcing as "concerning".
Ikea CEO Mikael Ohlsson was quoted in one report as saying while the outright ownership of operations granted to foreign single-brand retailers earlier this month was "a very positive change", the local sourcing rules were more easily met by food retailers than single-brand companies with established, global product ranges.
A company spokeswoman was quoted as saying: "We have found that the conditions applied to local sourcing from small and mid-size enterprises might be difficult for us to live up to."
Sharma said nobody had approached him, specifically mentioning these sourcing rules as an impediment. But he hinted that the government could be flexible. Ikea and other overseas retailers such as Wal-Mart, Carrefour and Tesco already source a range of items such as clothes, rugs, toothpastes and dog food from Indian companies, with many of them having done so for years. These companies also want to sell in India, the third biggest retail market in Asia.
Supermarket chains such as Wal-Mart, Carrefour and Tesco, which sell products of multiple brands, cannot set up stores yet as foreign direct investment is barred in multi-brand retail. At the start of 2012, the government notified 100% foreign investment in single brand retail with a key condition mandating all proposals involving FDI beyond 51% to source at least 30% of the value of products sold from 'Indian small industries/village and cottage industries, artisans and craftsmen'.
Some retail industry experts have also suggested that overseas retailers had a bigger problem with the definition of SMEs, which could automatically disqualify several vendors.
Commerce and Industry Minister Anand Sharma, whose ministry put together the new policy that permits 100% foreign ownership in the single-brand retail sector, appeared taken aback by reports that suggested Ikea was considering withholding its entry into India because of requirements such as sourcing of 30% goods from local small and medium companies.
"I don't know where the problem is. The chief of Ikea had told me only last year that they were already sourcing 30% of their global wares from India and the figure will only increase in the future," he told ET.
On Tuesday, news reports suggested that Ikea, which for long symbolised the type of overseas company that would be attracted by the policy change, had found the conditions on local sourcing as "concerning".
Ikea CEO Mikael Ohlsson was quoted in one report as saying while the outright ownership of operations granted to foreign single-brand retailers earlier this month was "a very positive change", the local sourcing rules were more easily met by food retailers than single-brand companies with established, global product ranges.
A company spokeswoman was quoted as saying: "We have found that the conditions applied to local sourcing from small and mid-size enterprises might be difficult for us to live up to."
Sharma said nobody had approached him, specifically mentioning these sourcing rules as an impediment. But he hinted that the government could be flexible. Ikea and other overseas retailers such as Wal-Mart, Carrefour and Tesco already source a range of items such as clothes, rugs, toothpastes and dog food from Indian companies, with many of them having done so for years. These companies also want to sell in India, the third biggest retail market in Asia.
Supermarket chains such as Wal-Mart, Carrefour and Tesco, which sell products of multiple brands, cannot set up stores yet as foreign direct investment is barred in multi-brand retail. At the start of 2012, the government notified 100% foreign investment in single brand retail with a key condition mandating all proposals involving FDI beyond 51% to source at least 30% of the value of products sold from 'Indian small industries/village and cottage industries, artisans and craftsmen'.
Some retail industry experts have also suggested that overseas retailers had a bigger problem with the definition of SMEs, which could automatically disqualify several vendors.
Indian tyre industry facing threat from cheap Chinese imports
AGARTALA: The Chairman of Rubber Board, Sheila Thomas, said that India's rubber industry is facing a threat due to cheap import of products from China, adding that the country could easily overcome this problem since the quality of products manufactured in India are superior as compared to other countries.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
Tyre makers' rubber import plans go awry on faltering demand
KOCHI: A slack demand in the tyre market has upset tyre companies' plans to import rubber and take advantage of low international prices. Tyre consumption recorded a marginal improvement in November but remained flat in December. This has forced tyre makers to adopt a wait-and-watch policy before adding to their inventory through imports.
With global rubber prices likely to remain subdued for some more time, tyre makers were gearing up for more import of natural rubber. The import of 40,000 tonne of rubber sanctioned by government at the reduced duty of 7.5% has more or less been completed.
"The tyre industry has decided to wait and watch before going for further imports as demand has not rebounded fully. Since there was some improvement in November sales, we were hoping it would be better in December. But the demand was flat last month," said Rajiv Budhraja, director general, Automotive Tyre Manufacturers' Association.
During the period from August to October, truck and bus tyre sales dropped 12% over the April-July period. Passenger car sales fell 8% in the period.
Overall, tyre production slid by 7% in the three months ended October 2011. The scenario has not changed much in the subsequent two months and the industry doesn't have high hopes for January.
Global rubber prices hovered around Rs 180 per kg in December while domestic prices remained around Rs 200 per kg. Even after considering the depreciation in rupee, imports are viable, say tyre industry sources.
"At the present international price, the landed cost of imported rubber will be around Rs 205 per kg. On the other hand, buying rubber from the local market and transporting it to the factories will take the cost to Rs 212 per kg," said George Valy, president of Rubber Dealers Association. The industry had earlier considered asking the government for duty-free imports factoring in the depreciation in rupee. But it now looks unlikely.
The sovereign debt crisis in Europe and lower offtake by China have kept the global rubber prices depressed. Chinese buying is expected to improve after their new year in January.
In Indian market, the future contracts are showing a bearish phase. The January contract for delivery is ruling at Rs 197. According to George Valy, growers may be reluctant to sell below Rs 200 per kg.
With global rubber prices likely to remain subdued for some more time, tyre makers were gearing up for more import of natural rubber. The import of 40,000 tonne of rubber sanctioned by government at the reduced duty of 7.5% has more or less been completed.
"The tyre industry has decided to wait and watch before going for further imports as demand has not rebounded fully. Since there was some improvement in November sales, we were hoping it would be better in December. But the demand was flat last month," said Rajiv Budhraja, director general, Automotive Tyre Manufacturers' Association.
During the period from August to October, truck and bus tyre sales dropped 12% over the April-July period. Passenger car sales fell 8% in the period.
Overall, tyre production slid by 7% in the three months ended October 2011. The scenario has not changed much in the subsequent two months and the industry doesn't have high hopes for January.
Global rubber prices hovered around Rs 180 per kg in December while domestic prices remained around Rs 200 per kg. Even after considering the depreciation in rupee, imports are viable, say tyre industry sources.
"At the present international price, the landed cost of imported rubber will be around Rs 205 per kg. On the other hand, buying rubber from the local market and transporting it to the factories will take the cost to Rs 212 per kg," said George Valy, president of Rubber Dealers Association. The industry had earlier considered asking the government for duty-free imports factoring in the depreciation in rupee. But it now looks unlikely.
The sovereign debt crisis in Europe and lower offtake by China have kept the global rubber prices depressed. Chinese buying is expected to improve after their new year in January.
In Indian market, the future contracts are showing a bearish phase. The January contract for delivery is ruling at Rs 197. According to George Valy, growers may be reluctant to sell below Rs 200 per kg.
Rubber board to focus on non-tyre sector
KOCHI: The Rubber Board will focus its promotion activities on consumption by the non-tyre sectors as offtake has dropped over 5% in the last six months.
Usually, this sector absorbs almost a third of production. Lacking the financial strength of tyre companies, the 4,000-plus units in the non-tyre sector are vulnerable to the changes in rubber prices and duties.
The sector was hit by a sharp rise in rubber prices and a low import duty on finished products last year. The downturn in the rubber prices towards the end of the year has brought some relief for the sector, which comprises many small-scale units.
As part of efforts to promote the sector, Rubber Board is taking an initiative to set up a product testing laboratory in Chennai. Rubber Board is hoping to get funds for the laboratory next fiscal.
Usually, this sector absorbs almost a third of production. Lacking the financial strength of tyre companies, the 4,000-plus units in the non-tyre sector are vulnerable to the changes in rubber prices and duties.
The sector was hit by a sharp rise in rubber prices and a low import duty on finished products last year. The downturn in the rubber prices towards the end of the year has brought some relief for the sector, which comprises many small-scale units.
As part of efforts to promote the sector, Rubber Board is taking an initiative to set up a product testing laboratory in Chennai. Rubber Board is hoping to get funds for the laboratory next fiscal.
TVS to scale up operations in West Bengal
KOLKATA: TVS Motor would ramp up its existing operations of manufacturing two-wheelers at Uluberia in Howrah over the next three years, a senior official of the company said.
"We are going to increase production of motorcycles at the Uluberia plant from 1600 units per year to 2.4 lakh units per year over a period of three years", TVS chairman Venu Srinivasan told reporters on the concluding day of Bengal Leads 2012 here today.
He said that total investment would around Rs 400 crore to be spent over three years.
Earlier, TVS had entered into a JV with Mahabharat Motors of Universal Success to manufacture two-wheelers on 44 acres of land.
Srinivasan said that on the remaining 56 acres, the JV would set up an auto ancillary unit.
Talks with vendors were on, he said.
"We are going to increase production of motorcycles at the Uluberia plant from 1600 units per year to 2.4 lakh units per year over a period of three years", TVS chairman Venu Srinivasan told reporters on the concluding day of Bengal Leads 2012 here today.
He said that total investment would around Rs 400 crore to be spent over three years.
Earlier, TVS had entered into a JV with Mahabharat Motors of Universal Success to manufacture two-wheelers on 44 acres of land.
Srinivasan said that on the remaining 56 acres, the JV would set up an auto ancillary unit.
Talks with vendors were on, he said.
KTM Duke 200 launched by Bajaj Auto at Rs 1.18 lakh
NEW DELHI: The country's second-largest two-wheeler maker Bajaj Auto on Tuesday launched a sports bike, 'Duke 200', from Austrian partner KTM's portfolio and said it plans to roll out three more products in as many years.
The domestic auto major is looking to strengthen its position as a sportsbike major in partnership with KTM and for this, it is converting its Probiking showrooms selling premium products across the country into KTM outlets.
"The launch of 'Duke' is one of the many steps in our association with KTM over the last five years. Between Bajaj Pulsar and KTM Duke, we intend to further strengthen our position in the sports motorcycle segment in India," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here. The company will launch at least one new KTM bike every year in India, he added.
The Duke 200 developed jointly by the two firms has been launched at an introductory price of Rs 1.18 lakh (ex-showroom Delhi). This is the first bike from their collaboration to be launched in India. Last year, a jointly developed 125-cc version of the Duke was launched in Europe.
All the KTM products for India will be assembled locally at BAL's facility in Chakan.
Talking about its future products, KTM Sportsmotorcycle AG Chief Executive Officer Stefan Pierer said: "Next year, we will launch a 350-cc bike and it will be followed by two more bikes in the next three years. So, it will be three bikes in three years."
BAL is already exporting India-assembled KTM bikes. It supplied around 11,000 units of the Duke 125 in 2011. "In a very short span of time, KTM will be the largest premium bike-maker in the world with entry into many mass markets like India and Malaysia. This year, we are expecting to double exports from India," Bajaj said.
KTM, which reported revenues of 526 million euros in 2011, sold over 81,000 units last year, compared to about 2,00,000 units by the world largest premium bike maker Harley Davidson, he added.
Elaborating on the domestic plans, Bajaj said: "Bajaj Auto has decided to sell the Duke through all 32 Probiking showrooms, which have now been transformed into exclusive KTM outlets. Besides, there will be 40 service centres dedicated only for KTM bikes."
As a result, all Bajaj branded products like the Pulsar 220 will no longer be sold at the former Probiking showrooms, but the Ninja models from Kawasaki will continue to be retailed from there, he added.
He said all the products from the foreign partner's stable will continue to be sold under the KTM marque as it is a specialist brand in the sports motorcycle segment.
The domestic auto major is looking to strengthen its position as a sportsbike major in partnership with KTM and for this, it is converting its Probiking showrooms selling premium products across the country into KTM outlets.
"The launch of 'Duke' is one of the many steps in our association with KTM over the last five years. Between Bajaj Pulsar and KTM Duke, we intend to further strengthen our position in the sports motorcycle segment in India," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here. The company will launch at least one new KTM bike every year in India, he added.
The Duke 200 developed jointly by the two firms has been launched at an introductory price of Rs 1.18 lakh (ex-showroom Delhi). This is the first bike from their collaboration to be launched in India. Last year, a jointly developed 125-cc version of the Duke was launched in Europe.
All the KTM products for India will be assembled locally at BAL's facility in Chakan.
Talking about its future products, KTM Sportsmotorcycle AG Chief Executive Officer Stefan Pierer said: "Next year, we will launch a 350-cc bike and it will be followed by two more bikes in the next three years. So, it will be three bikes in three years."
BAL is already exporting India-assembled KTM bikes. It supplied around 11,000 units of the Duke 125 in 2011. "In a very short span of time, KTM will be the largest premium bike-maker in the world with entry into many mass markets like India and Malaysia. This year, we are expecting to double exports from India," Bajaj said.
KTM, which reported revenues of 526 million euros in 2011, sold over 81,000 units last year, compared to about 2,00,000 units by the world largest premium bike maker Harley Davidson, he added.
Elaborating on the domestic plans, Bajaj said: "Bajaj Auto has decided to sell the Duke through all 32 Probiking showrooms, which have now been transformed into exclusive KTM outlets. Besides, there will be 40 service centres dedicated only for KTM bikes."
As a result, all Bajaj branded products like the Pulsar 220 will no longer be sold at the former Probiking showrooms, but the Ninja models from Kawasaki will continue to be retailed from there, he added.
He said all the products from the foreign partner's stable will continue to be sold under the KTM marque as it is a specialist brand in the sports motorcycle segment.
KTM Duke 200 launched by Bajaj Auto at Rs 1.18 lakh
NEW DELHI: Bajaj Auto will convert its niche pro-biking stores across India into exclusive KTM stores to sell the newly launched sports bike, Duke 200 that comes at an invitation price of 1.17 lakh (ex-showroom) Delhi.
The country's second-largest two-wheeler maker holds a 40% stake in KTM Power Sports AG, Europe largest sports bike maker, and will distribute the high-end European bikes from existing 34 pro-biking showroom that would be done up with orange KTM livery and six new ones will added in 2012.
Besides, there would be 40 service centers dedicated for KTM bikes. Bajaj would assemble the new bike at its Chakan plant and market it across the country through KTM stores. The bikes can be booked across these outlets and deliveries would start from early February.
"We plan to establish KTM as a sporty motorcycle brand that would offer niche European features to Indian users. Between the Bajaj Pulsar and the KTM Duke, we intend to further strengthen our dominant position in the sports motorcycle segment in India," Bajaj Auto MD Rajiv Bajaj said.
Following the multi-brand concept, Bajaj would continue to sell Kawasaki Ninja bikes through these KTM branded stores, but would shift its high-end bikes like the Pulsar 200 and Avenger cruiser range to regular Bajaj Auto dealerships that sells its other volume bikes.
The country's second-largest two-wheeler maker holds a 40% stake in KTM Power Sports AG, Europe largest sports bike maker, and will distribute the high-end European bikes from existing 34 pro-biking showroom that would be done up with orange KTM livery and six new ones will added in 2012.
Besides, there would be 40 service centers dedicated for KTM bikes. Bajaj would assemble the new bike at its Chakan plant and market it across the country through KTM stores. The bikes can be booked across these outlets and deliveries would start from early February.
"We plan to establish KTM as a sporty motorcycle brand that would offer niche European features to Indian users. Between the Bajaj Pulsar and the KTM Duke, we intend to further strengthen our dominant position in the sports motorcycle segment in India," Bajaj Auto MD Rajiv Bajaj said.
Following the multi-brand concept, Bajaj would continue to sell Kawasaki Ninja bikes through these KTM branded stores, but would shift its high-end bikes like the Pulsar 200 and Avenger cruiser range to regular Bajaj Auto dealerships that sells its other volume bikes.
'World's cheapest car' tag backfires for Tata Nano
NEW DELHI: When Tata Motors launched the Nano in 2009, the concept of the " world's cheapest car" in one of the world's fastest growing auto markets seemed pre-destined for commercial success.
Logically, the strategy appeared faultless -- offering an affordable solution to millions of aspirational lower-middle class Indian families wanting to make the social and practical leap from two wheels to four.
But after several years of disappointing sales, it has now become clear that the snubnosed hatchback's unique selling point -- it's price -- was actually a commercial sticking point.
Rather than embracing the Nano, the status-conscious consumer base that was its prime target has largely shunned the "cheap" tag of the $2,800 vehicle and opted for slightly pricier rivals, or second-hand vehicles costing the same.
"A Nano is always bandied about as a poor man's car. Nobody wants to be caught with it," said Punnoose Tharyan, editor of India's Motown magazine.
Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R Ramakrishnan, business head of Tata Motors passenger cars.
"The car didn't project the right image," said automobile expert Murad Ali Baig. "Also, for the same cost as the Nano there are quite respectable second-hand cars -- with air conditioning."
The base model, sold without air conditioning which is a disadvantage in India's searing heat, costs 140,880 rupees ($2,800). The premium version -- air conditioning, central locking and power front windows -- is 196,959 rupees.
The Nano ran into trouble from the start when a land acquisition row forced Tata to abandon a nearly completed plant and build another, badly delaying production.
There were also safety concerns after a number of cars burst into flames.
Now Tata Motors, which also produces the British luxury Jaguar and Land Rover brands, has gone into damage control mode.
Tata boss Ratan Tata conceded this month that mistakes had been made, which had fuelled the perception of the Nano as a "poor man's" vehicle.
"Whatever stigma has been attached to it, we will undo," Tata said, insisting that the Nano had always been intended as an "affordable, all-weather, family car."
To get sales on track, Tata has given the car a makeover, making it available in more colours, including "champagne gold" and "papaya orange," and sprucing up the interiors while keeping prices unchanged.
It has also offered a "Tata Nano Happiness Guarantee", which more than doubles the car's warranty to four years from 18 months, and throwing in a maintenance contract for just 99 rupees a month.
It is offering "fast-track" financing for buyers wanting loans to purchase the car -- with loan approvals in 48 hours. Also, buyers can put down just 15,000 rupees ($300) to drive a Nano out of the showroom.
"Let's say at first it moved a little slowly in the market place, but now we have understood what the customer requirements are," said Tata Motors India managing director Prakash Telang.
And Telang remains convinced that the potential Nano market remains as vast as its makers originally predicted.
"Car penetration in India is 10 to 11 per 1,000 people as compared to Western economies where it is as high as about 400 per 1,000 people," Telang said. "The market will continue to grow rapidly."
Typical of the buyers Telang has in mind is Dira Singh, who has a wife and two children and recently upgraded from a motorcycle to a shiny blue Nano.
"The Nano was in my budget. It wasn't costly and that's why I took it," Singh said, standing proudly beside the vehicle. "It will protect my family."
Logically, the strategy appeared faultless -- offering an affordable solution to millions of aspirational lower-middle class Indian families wanting to make the social and practical leap from two wheels to four.
But after several years of disappointing sales, it has now become clear that the snubnosed hatchback's unique selling point -- it's price -- was actually a commercial sticking point.
Rather than embracing the Nano, the status-conscious consumer base that was its prime target has largely shunned the "cheap" tag of the $2,800 vehicle and opted for slightly pricier rivals, or second-hand vehicles costing the same.
"A Nano is always bandied about as a poor man's car. Nobody wants to be caught with it," said Punnoose Tharyan, editor of India's Motown magazine.
Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R Ramakrishnan, business head of Tata Motors passenger cars.
"The car didn't project the right image," said automobile expert Murad Ali Baig. "Also, for the same cost as the Nano there are quite respectable second-hand cars -- with air conditioning."
The base model, sold without air conditioning which is a disadvantage in India's searing heat, costs 140,880 rupees ($2,800). The premium version -- air conditioning, central locking and power front windows -- is 196,959 rupees.
The Nano ran into trouble from the start when a land acquisition row forced Tata to abandon a nearly completed plant and build another, badly delaying production.
There were also safety concerns after a number of cars burst into flames.
Now Tata Motors, which also produces the British luxury Jaguar and Land Rover brands, has gone into damage control mode.
Tata boss Ratan Tata conceded this month that mistakes had been made, which had fuelled the perception of the Nano as a "poor man's" vehicle.
"Whatever stigma has been attached to it, we will undo," Tata said, insisting that the Nano had always been intended as an "affordable, all-weather, family car."
To get sales on track, Tata has given the car a makeover, making it available in more colours, including "champagne gold" and "papaya orange," and sprucing up the interiors while keeping prices unchanged.
It has also offered a "Tata Nano Happiness Guarantee", which more than doubles the car's warranty to four years from 18 months, and throwing in a maintenance contract for just 99 rupees a month.
It is offering "fast-track" financing for buyers wanting loans to purchase the car -- with loan approvals in 48 hours. Also, buyers can put down just 15,000 rupees ($300) to drive a Nano out of the showroom.
"Let's say at first it moved a little slowly in the market place, but now we have understood what the customer requirements are," said Tata Motors India managing director Prakash Telang.
And Telang remains convinced that the potential Nano market remains as vast as its makers originally predicted.
"Car penetration in India is 10 to 11 per 1,000 people as compared to Western economies where it is as high as about 400 per 1,000 people," Telang said. "The market will continue to grow rapidly."
Typical of the buyers Telang has in mind is Dira Singh, who has a wife and two children and recently upgraded from a motorcycle to a shiny blue Nano.
"The Nano was in my budget. It wasn't costly and that's why I took it," Singh said, standing proudly beside the vehicle. "It will protect my family."
Low-cost amphibian car conceptualised by engg students
NAGAPATTINAM: Engineering students of a university in Thanjavur have designed two types of light weight, eco-friendly and low-cost cars, including an amphibian one capable of travelling on road and floating on water.
While one type of car runs on petrol and LPG, the other one is an electric car operated using a battery tapping solar energy, capable of travelling on road and water.
Two groups of final year engineering students of PRIST University, Thanjavur, have designed the cars in collaboration with Hi-Tech Project Industries, a private Engineering Services company at Tarangambadi in Nagapattinam district.
Both the cars have been fabricated using steel, Aluminium alloys, plastics and other locally available material and cost below Rs 35,000, researchers at Hi-Tech Project Industries, Tarangambadi said.
The electric car was designed by Rajendra Kumar, Nitesh Kumar, Sanjay Kumar, Abhishek Raj, Roopak Kumar, Sanjay Kumar Yadav and Chandrakanth. The car was capable of running on road as well as on water with a slight modification and could carry two persons, researchers said.
When it runs on water, it will act more like a boat. The car can run at a top speed of 30 kmph on road and at 15 kmph on water and is totally eco-friendly, they said.
The 110-CC petrol/LPG car weighing just 135-kg was designed by Alok Kumar, Amith Kumar, Ananth Kumar and Ajay Kumar. The car runs at a top speed of 50 kmph and is very fuel efficient at 65 km per litre of petrol,they claimed. When running on LPG, it gives a mileage of 110 km per kg.
Gear system and suspension mechanism in both the vehicles, had been meticulously designed, said Jayaraj, Murali and Balasundaram, researchers at Hi-Tech Project Industries.
District Collector T Munusamy visited Tarangambadi today and witnessed a demonstration of the cars.
While one type of car runs on petrol and LPG, the other one is an electric car operated using a battery tapping solar energy, capable of travelling on road and water.
Two groups of final year engineering students of PRIST University, Thanjavur, have designed the cars in collaboration with Hi-Tech Project Industries, a private Engineering Services company at Tarangambadi in Nagapattinam district.
Both the cars have been fabricated using steel, Aluminium alloys, plastics and other locally available material and cost below Rs 35,000, researchers at Hi-Tech Project Industries, Tarangambadi said.
The electric car was designed by Rajendra Kumar, Nitesh Kumar, Sanjay Kumar, Abhishek Raj, Roopak Kumar, Sanjay Kumar Yadav and Chandrakanth. The car was capable of running on road as well as on water with a slight modification and could carry two persons, researchers said.
When it runs on water, it will act more like a boat. The car can run at a top speed of 30 kmph on road and at 15 kmph on water and is totally eco-friendly, they said.
The 110-CC petrol/LPG car weighing just 135-kg was designed by Alok Kumar, Amith Kumar, Ananth Kumar and Ajay Kumar. The car runs at a top speed of 50 kmph and is very fuel efficient at 65 km per litre of petrol,they claimed. When running on LPG, it gives a mileage of 110 km per kg.
Gear system and suspension mechanism in both the vehicles, had been meticulously designed, said Jayaraj, Murali and Balasundaram, researchers at Hi-Tech Project Industries.
District Collector T Munusamy visited Tarangambadi today and witnessed a demonstration of the cars.
TVS Motor launches upgraded TVS Star City model
CHENNAI: TVS Motor Company Ltd, which manufactures two- and three-wheelers on Tuesday announced the launch of an upgraded version of its 110cc motorcycle TVS Star City.
In a statement, the company said the model will now be available with executive bike segment features like dual tone body colours, and an all-new stylish headlamp.
The bike will come in six new colour combinations.
"This new motorcycle is a winning combination of executive class features and vibrant styling. The backing of high fuel efficiency and toughness will make TVS Star City a much sought after motorcycle," H.S. Goindi, president - marketing, was quoted in the company statement as saying.
According to TVS Motor, under standard test conditions the model gives a mileage of 83.9 km per litre.
The base version TVS Star City 110cc starts at Rs. 38,650/- (ex Delhi) with a five-year warranty.
In a statement, the company said the model will now be available with executive bike segment features like dual tone body colours, and an all-new stylish headlamp.
The bike will come in six new colour combinations.
"This new motorcycle is a winning combination of executive class features and vibrant styling. The backing of high fuel efficiency and toughness will make TVS Star City a much sought after motorcycle," H.S. Goindi, president - marketing, was quoted in the company statement as saying.
According to TVS Motor, under standard test conditions the model gives a mileage of 83.9 km per litre.
The base version TVS Star City 110cc starts at Rs. 38,650/- (ex Delhi) with a five-year warranty.
Nissan to begin export of Sunny from March
CHENNAI: Japanese automaker Nissan would begin exports of its latest sedan 'Sunny' in March, a top company official said today.
After foraying into Indian market through its completely-built units SUV X-Trail and Teana, Nissan in 2005 inked an agreement with France-automaker Renault to set up a manufacturing unit at an investment of Rs 4,500 crore spread over a period of seven years.
It currently manufactures cars Micra and Sunny from their facility at Oragadam near here which has a capacity of producing two lakh units.
After beginning exports of its first hatchback Micra, Nissan Motor India Managing Director and CEO Kiminobu Tokuyama today said they would be commencing exports of "Sunny".
"We will be exporting Sunny by March-end. Already we were exporting Micra to many countries. Initially, Sunny will be exported to Middle East market, Tokuyama told reporters here.
Currently, Nissan sold 25,000 units of Micra while the Sunny diesel version has got over 4,000 bookings so far, he said.
On their future plans, he said the company would also increase its capacity of the Chennai plant owing to increase in production. "Initially the plant's annual capacity is two lakh units. We will increase it to four lakh units by March..", he said.
Asked whether the company would be required to make additional investments, he said so far Nissan has invested Rs 2,800 Crore at the Chennai facility and this would be sufficient for the plant expansion.
After foraying into Indian market through its completely-built units SUV X-Trail and Teana, Nissan in 2005 inked an agreement with France-automaker Renault to set up a manufacturing unit at an investment of Rs 4,500 crore spread over a period of seven years.
It currently manufactures cars Micra and Sunny from their facility at Oragadam near here which has a capacity of producing two lakh units.
After beginning exports of its first hatchback Micra, Nissan Motor India Managing Director and CEO Kiminobu Tokuyama today said they would be commencing exports of "Sunny".
"We will be exporting Sunny by March-end. Already we were exporting Micra to many countries. Initially, Sunny will be exported to Middle East market, Tokuyama told reporters here.
Currently, Nissan sold 25,000 units of Micra while the Sunny diesel version has got over 4,000 bookings so far, he said.
On their future plans, he said the company would also increase its capacity of the Chennai plant owing to increase in production. "Initially the plant's annual capacity is two lakh units. We will increase it to four lakh units by March..", he said.
Asked whether the company would be required to make additional investments, he said so far Nissan has invested Rs 2,800 Crore at the Chennai facility and this would be sufficient for the plant expansion.
Denso to invest Rs 300 crore for new plant at Gurgaon
EW DELHI: Japan-based auto component maker Denso Corporation plans to invest Rs 300 crore to set up a new manufacturing facility at Gurgaon in Haryana as it looks to augment its production capabilities in India.
The company, which is present in India through its unit 'Denso International India', is also scouting for land in South India to set up a manufacturing plant to cater to the increasing demand.
"About Rs 300 crore will be invested to build a new plant in Gurgaon, Haryana. Denso has already acquired 1.5 lakh sq meter site for this plant, and we are now preparing to start production by the end of 2013," Denso International India Chairman and CFO Yasushi Nei told PTI.
The company would utilise the new plant to produce air- conditioning components like heat exchangers and various kinds of motors, Nei added.
The company has four manufacturing facilities in India. The company which started operations in the country in 1984 with the production of starters and alternators, is now looking to enhance its presence in the country by 2015.
"We will enhance our production, marketing and developing capabilities with a goal to increase fiscal year 2015 sales by 2.5 times the level of fiscal year 2010," Nei said.
The company's investments in the country -- Gurgaon, Bangalore and technical centre -- are all part of its efforts to enhance production capacities in the country, Nei added.
Denso has invested Rs 100 crore in February 2010 in a new plant in Bangalore and is also coming up with a technical centre in Gurgaon at an investment of Rs 150 crore.
Further, the company is also scouting for land in South India to cater to its various customers in the region.
"We are conducting a feasibility study to select a southern area to set up a manufacturing plant. This plant will help us expand customer base in South India," Nei said.
The company has various customers like Toyota, Hyundai and Ford which are based in southern part of the country.
In India, Denso manufactures car air-conditioning systems, radiators and products for two-wheelers such as generators and capacitor discharge ignition systems (CDIs).
Denso, which has technical collaborations with Subros, Pricol and Lucas TVS in India, also plans to add around 600 employees by 2015 to its existing strength of 3000 employees in India.
Globally, the company employs over one lakh employees and has posted net sales of $ 37.7 billion in 2010-11
The company, which is present in India through its unit 'Denso International India', is also scouting for land in South India to set up a manufacturing plant to cater to the increasing demand.
"About Rs 300 crore will be invested to build a new plant in Gurgaon, Haryana. Denso has already acquired 1.5 lakh sq meter site for this plant, and we are now preparing to start production by the end of 2013," Denso International India Chairman and CFO Yasushi Nei told PTI.
The company would utilise the new plant to produce air- conditioning components like heat exchangers and various kinds of motors, Nei added.
The company has four manufacturing facilities in India. The company which started operations in the country in 1984 with the production of starters and alternators, is now looking to enhance its presence in the country by 2015.
"We will enhance our production, marketing and developing capabilities with a goal to increase fiscal year 2015 sales by 2.5 times the level of fiscal year 2010," Nei said.
The company's investments in the country -- Gurgaon, Bangalore and technical centre -- are all part of its efforts to enhance production capacities in the country, Nei added.
Denso has invested Rs 100 crore in February 2010 in a new plant in Bangalore and is also coming up with a technical centre in Gurgaon at an investment of Rs 150 crore.
Further, the company is also scouting for land in South India to cater to its various customers in the region.
"We are conducting a feasibility study to select a southern area to set up a manufacturing plant. This plant will help us expand customer base in South India," Nei said.
The company has various customers like Toyota, Hyundai and Ford which are based in southern part of the country.
In India, Denso manufactures car air-conditioning systems, radiators and products for two-wheelers such as generators and capacitor discharge ignition systems (CDIs).
Denso, which has technical collaborations with Subros, Pricol and Lucas TVS in India, also plans to add around 600 employees by 2015 to its existing strength of 3000 employees in India.
Globally, the company employs over one lakh employees and has posted net sales of $ 37.7 billion in 2010-11
Paracoat Products to achieve sales of Rs 250 crore by 2014
NEW DELHI: Automotive component maker Paracoat Products (PCP) today said it expects to achieve the sales of Rs 250 crore in next two years on back of capacity expansion and entry into new verticals.
"From current sales of Rs 150 crore we expect to reach the sales of Rs 250 crore by 2014," Paracoat Products Director (Business Development) Rajesh Poddar told PTI.
For this, apart from entering new verticals the company will strengthen its noise, vibration, and harshness (NVH) business by opening a new facility for EPP moulding at Ranipet in Tamilnadu and strengthening its Bhiwadi facilities, he added.
Paracoat has also entered into a new vertical of motor home project and has set up a plant near Haridwar in Uttarakhand for assembling PCP Terra Home Cars.
"The company plans to roll out 90 PCP Terra vehicles by the end of FY 2012-13," Poddar said.
PCP Terra motor home cum office is based on a standard pick-up truck, like Mahindra Genio, installed with frame made of fibre glass (FRP) and is fitted with all required facilities for seven persons, the company said.
The Uttarakhand plant has an assembling capacity of 300 PCP Terra home cars in a year and the company plans to expand the capacity.
"We intend to expand our capacity and by 2016 based on the market. We intend to make 500 vehicles by 2016," he added.
On being asked about how the firm is planning to raise the finances for its expansion plans Poddar said: "We plan to raise funds by internal accrual, debt from bank and PE funding".
At a later stage, the company also intends to open Caravan parks across the country through a group firm that will provide parking space to these motor homes.
"From current sales of Rs 150 crore we expect to reach the sales of Rs 250 crore by 2014," Paracoat Products Director (Business Development) Rajesh Poddar told PTI.
For this, apart from entering new verticals the company will strengthen its noise, vibration, and harshness (NVH) business by opening a new facility for EPP moulding at Ranipet in Tamilnadu and strengthening its Bhiwadi facilities, he added.
Paracoat has also entered into a new vertical of motor home project and has set up a plant near Haridwar in Uttarakhand for assembling PCP Terra Home Cars.
"The company plans to roll out 90 PCP Terra vehicles by the end of FY 2012-13," Poddar said.
PCP Terra motor home cum office is based on a standard pick-up truck, like Mahindra Genio, installed with frame made of fibre glass (FRP) and is fitted with all required facilities for seven persons, the company said.
The Uttarakhand plant has an assembling capacity of 300 PCP Terra home cars in a year and the company plans to expand the capacity.
"We intend to expand our capacity and by 2016 based on the market. We intend to make 500 vehicles by 2016," he added.
On being asked about how the firm is planning to raise the finances for its expansion plans Poddar said: "We plan to raise funds by internal accrual, debt from bank and PE funding".
At a later stage, the company also intends to open Caravan parks across the country through a group firm that will provide parking space to these motor homes.
Apollo Tyres fined Rs 30 crore on cartelisation charge in South Africa
NEW DELHI: Apollo Tyres has been been asked to cough up 45 million rands (about Rs 30 crore) as penalty for indulging in cartelisation in South Africa, a dispute which the company said relates to period when the firm was managed by Dunlop.
South African Competition Commission said Apollo Tyres (formerly Dunlop) has admitted that it took part in the tyre manufacturers' cartel and agreed on pricing and price hikes.
"Apollo Tyres has agreed to pay a penalty of R45 million which represents 4.75 per cent of its 2008 total turnover and admits that it was involved in price fixing conduct," the Commission said in its order.
When asked about the allegations, Apollo Tyres said it has agreed to pay up the fine in the interest of shareholders although the period referred to by the Commission belonged to the erstwhile management.
"In the interest of business and its various stakeholders, Apollo Tyres South Africa Pty Ltd (previously Dunlop Tyres International Pty Ltd), has amicably settled allegations of cartelisation by the South African Competition Commission."
"During the period referred to by the Competition Commission, the company was led by the previous management, and a management change took place post the acquisition by Apollo Tyres. The current management had no involvement in, or knowledge of, the anti-competitive conduct identified by the Commission. The company has decided to settle this and move forward in the best interest of all stakeholders," a spokesperson of Apollo Tyres said.
The agreement followed the South African Commission's investigation against South African Tyre Manufacturers Conference (Pty) Ltd (SATMC) and four local tyre manufacturers and suppliers -- Apollo, Goodyear South Africa (Pty) Ltd, Continental Tyre South Africa (Pty) Ltd and Bridgestone South Africa (Pty) Ltd ("Bridgestone").
The Commission had initiated this case following a complaint lodged by a fleet owner, alleging that the local tyre manufacturers simultaneously adjusted their prices around the same time and within the same parameters.
South African Competition Commission said Apollo Tyres (formerly Dunlop) has admitted that it took part in the tyre manufacturers' cartel and agreed on pricing and price hikes.
"Apollo Tyres has agreed to pay a penalty of R45 million which represents 4.75 per cent of its 2008 total turnover and admits that it was involved in price fixing conduct," the Commission said in its order.
When asked about the allegations, Apollo Tyres said it has agreed to pay up the fine in the interest of shareholders although the period referred to by the Commission belonged to the erstwhile management.
"In the interest of business and its various stakeholders, Apollo Tyres South Africa Pty Ltd (previously Dunlop Tyres International Pty Ltd), has amicably settled allegations of cartelisation by the South African Competition Commission."
"During the period referred to by the Competition Commission, the company was led by the previous management, and a management change took place post the acquisition by Apollo Tyres. The current management had no involvement in, or knowledge of, the anti-competitive conduct identified by the Commission. The company has decided to settle this and move forward in the best interest of all stakeholders," a spokesperson of Apollo Tyres said.
The agreement followed the South African Commission's investigation against South African Tyre Manufacturers Conference (Pty) Ltd (SATMC) and four local tyre manufacturers and suppliers -- Apollo, Goodyear South Africa (Pty) Ltd, Continental Tyre South Africa (Pty) Ltd and Bridgestone South Africa (Pty) Ltd ("Bridgestone").
The Commission had initiated this case following a complaint lodged by a fleet owner, alleging that the local tyre manufacturers simultaneously adjusted their prices around the same time and within the same parameters.
Kinetic Engineering to launch two new gearboxes
NEW DELHI: Auto component manufacturer Kinetic Engineering on Tuesday said it will role out two new gearboxes for different customers.
"We have two very important programmes which are ready to role out. We have finished the developments in the last 18 months," Sulajja Firodia Motwani, vice chairperson, Kinetic Engineering, told IANS.
"One (product) is the gearbox for Piaggio Ape four wheeler. It's a new platform which will be launched. And a second new completely assembled gearbox for Mahindra Navistar trucks which will roll out in the next two-three months," Motwani said on the sidelines of a FICCI event.
The company did not divulge the investments made for the products, but said existing facilities and synergies were utilised in developing the new offerings.
According to Motwani, the company is focusing on bring in new technologies in the powertrain and transmission segments in the next few months because the Indian markets is changing. "Our focus is on the transmission (segment) and we do hope to bring out new technologies in this areas. And in the next few months you may see some new announcement."
Bullish on the Indian automobile market, she said, "Indian auto industry remains a very attractive markets for us. We mainly serve segments like two wheelers, three wheelers and commercial vehicles which are growing quite well."
On the Nano project in which the company supplies the complete shaft, gears and transmissions components to Tata Motors, Motwani said the company had been invited to quote for the diesel version of the car. "Nano is growing well and we are very bullish on the car. We have been invited to quote on the diesel Nano as well."
The company had invested Rs.60 crore for setting up a component line for the Nano at its Ahmadnagar facility. "We are supplying from Ahmadnagar. We had discussed with Tata Motors for a potential assembly unit in Sanand. Discussion are still on."
On exports, the company said its main markets in US and Europe have stabilised after the free fall of 2008-09. "I would say it (exports) went through a difficult period in 2008-09, but exports have been stabilised now," added Motwani.
"We have two very important programmes which are ready to role out. We have finished the developments in the last 18 months," Sulajja Firodia Motwani, vice chairperson, Kinetic Engineering, told IANS.
"One (product) is the gearbox for Piaggio Ape four wheeler. It's a new platform which will be launched. And a second new completely assembled gearbox for Mahindra Navistar trucks which will roll out in the next two-three months," Motwani said on the sidelines of a FICCI event.
The company did not divulge the investments made for the products, but said existing facilities and synergies were utilised in developing the new offerings.
According to Motwani, the company is focusing on bring in new technologies in the powertrain and transmission segments in the next few months because the Indian markets is changing. "Our focus is on the transmission (segment) and we do hope to bring out new technologies in this areas. And in the next few months you may see some new announcement."
Bullish on the Indian automobile market, she said, "Indian auto industry remains a very attractive markets for us. We mainly serve segments like two wheelers, three wheelers and commercial vehicles which are growing quite well."
On the Nano project in which the company supplies the complete shaft, gears and transmissions components to Tata Motors, Motwani said the company had been invited to quote for the diesel version of the car. "Nano is growing well and we are very bullish on the car. We have been invited to quote on the diesel Nano as well."
The company had invested Rs.60 crore for setting up a component line for the Nano at its Ahmadnagar facility. "We are supplying from Ahmadnagar. We had discussed with Tata Motors for a potential assembly unit in Sanand. Discussion are still on."
On exports, the company said its main markets in US and Europe have stabilised after the free fall of 2008-09. "I would say it (exports) went through a difficult period in 2008-09, but exports have been stabilised now," added Motwani.
Antrix-Devas deal: 4 former ISRO officials barred from holding Govt jobs
NEW DELHI, JAN 25:
As a fallout of the controversial Antrix-Devas deal, the Government has barred former ISRO chief, Mr G. Madhavan Nair, and three other space scientists from holding any Government jobs.
The action comes in the wake of the controversial deal in which Bangalore-based Devas got into an exclusive deal with Antrix, which in effect gave the private firm control over a large chunk of valuable S-band spectrum. The deal was annulled after an expose by Business Line. The contract with Devas was signed during the tenure of Mr Nair as the Chairman of ISRO.
'Unfair decision'
Reacting to the Government’s move, Mr Nair said that the decision was unfair as he had not been given a hearing on the issue. The Prime Minister had on May 31, last year, constituted a five-member high-level team under the chairmanship of former Central Vigilance Commissioner, Mr Pratyush Sinha, to examine the aspects of the agreement between Antrix and Devas.
Business Line had a series of stories on this deal on how crucial information about the deal was withheld by the Department of Space.
Cabinet note
According to a note prepared for the Cabinet Committee on Security (CCS), the Department withheld from the Space Commission as well as the Government vital information that the two satellites, GSAT-6 and GSAT-6A, were being built for Devas.
“Though the GSAT-6 and GSAT-6A satellites were being built by ISRO to meet the requirements of PS-1 and PS-2 specified in the Antrix-Devas Agreement,” the note said, “the proposals from the Department for approval...did not reflect the conclusion of such an arrangement in January 2005 itself.”
While Antrix signed the agreement on January 28, 2005, it was not until July 2, 2010 — weeks after Business Line revealed the nature of the deal to build the two S-band satellites and lease capacity from them to Devas — that the Space Commission was briefed on the agreement.
“Taking note of the fact that Government policies with regard to allocation of spectrum have undergone a change in the last few years and there has been an increased demand for allocation of spectrum for national needs, including for the needs of defence, paramilitary forces, railways and other public utility services as well as for societal needs, and having regard to the needs of the country’s strategic requirements, the Government will not be able to provide orbit slot in S-band to Antrix for commercial activities, including for those which are the subject matter of existing contractual obligations for S-band,” the note added.
Keywords: Antrix-Devas deal, ex-ISRO chief, scientists, government jobs, S band spectrum allocation
As a fallout of the controversial Antrix-Devas deal, the Government has barred former ISRO chief, Mr G. Madhavan Nair, and three other space scientists from holding any Government jobs.
The action comes in the wake of the controversial deal in which Bangalore-based Devas got into an exclusive deal with Antrix, which in effect gave the private firm control over a large chunk of valuable S-band spectrum. The deal was annulled after an expose by Business Line. The contract with Devas was signed during the tenure of Mr Nair as the Chairman of ISRO.
'Unfair decision'
Reacting to the Government’s move, Mr Nair said that the decision was unfair as he had not been given a hearing on the issue. The Prime Minister had on May 31, last year, constituted a five-member high-level team under the chairmanship of former Central Vigilance Commissioner, Mr Pratyush Sinha, to examine the aspects of the agreement between Antrix and Devas.
Business Line had a series of stories on this deal on how crucial information about the deal was withheld by the Department of Space.
Cabinet note
According to a note prepared for the Cabinet Committee on Security (CCS), the Department withheld from the Space Commission as well as the Government vital information that the two satellites, GSAT-6 and GSAT-6A, were being built for Devas.
“Though the GSAT-6 and GSAT-6A satellites were being built by ISRO to meet the requirements of PS-1 and PS-2 specified in the Antrix-Devas Agreement,” the note said, “the proposals from the Department for approval...did not reflect the conclusion of such an arrangement in January 2005 itself.”
While Antrix signed the agreement on January 28, 2005, it was not until July 2, 2010 — weeks after Business Line revealed the nature of the deal to build the two S-band satellites and lease capacity from them to Devas — that the Space Commission was briefed on the agreement.
“Taking note of the fact that Government policies with regard to allocation of spectrum have undergone a change in the last few years and there has been an increased demand for allocation of spectrum for national needs, including for the needs of defence, paramilitary forces, railways and other public utility services as well as for societal needs, and having regard to the needs of the country’s strategic requirements, the Government will not be able to provide orbit slot in S-band to Antrix for commercial activities, including for those which are the subject matter of existing contractual obligations for S-band,” the note added.
Keywords: Antrix-Devas deal, ex-ISRO chief, scientists, government jobs, S band spectrum allocation
'Investor-friendly' Sebi to launch ad campaign next month
Mumbai: After a series of investor-friendly measures, the Securities and Exchange Board of India (Sebi), the capital market regulator, plans to back it up with a first-of-its-kind advertising campaign, expected to be launched next month. The primary objective will be spreading investor awareness and increasing penetration.
Sebi plans to do so by trying to demystify the securities market and highlighting some recent initiatives, such as the toll-free helpline. The campaign will be in various languages and across platforms like print, radio and television.
“We intend to launch the media campaign within a month,” said a senior Sebi official, without specifying the date.
The regulator has earmarked about Rs 12 crore for the media campaign and investor awareness programmes for 2011-12.
In the past, the Reserve Bank of India has regularly used the print and electronic media to alert the public about various fictitious schemes and fake currencies.
“The level of retail investor participation in the Indian market is far less than what we aspire. Despite some downsides, our economy and market have been growing, but the benefits are not reaching households,” Sebi Chairman U K Sinha had said earlier this month. “The level of financial literacy and market awareness in this country are the major drawbacks.”
The Sebi boss intends to increase awareness and education among investors and simplify investing to improve investor experience. The media campaign is part of this agenda.
The regulator introduced several initiatives in the new year to make investors’ lives easier. It has set up a 14-language toll-free helpline to assist investors on various market-related issues and complaints. To make switching trading accounts hassle-free, it has introduced one-time know your client (KYC) rules, which enable investors to change their brokerages without having to go through the KYC process. To curb listing-day volatility, it has introduced circuit filters for IPOs and relisted stocks on the first day.
Sebi plans to do so by trying to demystify the securities market and highlighting some recent initiatives, such as the toll-free helpline. The campaign will be in various languages and across platforms like print, radio and television.
“We intend to launch the media campaign within a month,” said a senior Sebi official, without specifying the date.
The regulator has earmarked about Rs 12 crore for the media campaign and investor awareness programmes for 2011-12.
In the past, the Reserve Bank of India has regularly used the print and electronic media to alert the public about various fictitious schemes and fake currencies.
“The level of retail investor participation in the Indian market is far less than what we aspire. Despite some downsides, our economy and market have been growing, but the benefits are not reaching households,” Sebi Chairman U K Sinha had said earlier this month. “The level of financial literacy and market awareness in this country are the major drawbacks.”
The Sebi boss intends to increase awareness and education among investors and simplify investing to improve investor experience. The media campaign is part of this agenda.
The regulator introduced several initiatives in the new year to make investors’ lives easier. It has set up a 14-language toll-free helpline to assist investors on various market-related issues and complaints. To make switching trading accounts hassle-free, it has introduced one-time know your client (KYC) rules, which enable investors to change their brokerages without having to go through the KYC process. To curb listing-day volatility, it has introduced circuit filters for IPOs and relisted stocks on the first day.
Smartphone shipments cross 10-mn mark in 2011
Mumbai: Smartphone shipments touched 10 million units in the first eleven months of the calendar year 2011, estimates CyberMedia Research (CMR). In its report titled 'India Monthly Mobile Handsets Market Review', CMR claims that November last year was the third consecutive month when smartphone shipments in India crossed one million units and saw the launch of 23 smartphone models.
"The launch of dual-SIM smartphones is a new trend," said Tarun Pathak, telecom analyst (Monthly Mobile Phones Market Review Program), CMR.
For November last year, CMR estimates that Indian mobile handsets' market recorded sales of 15.4 million units. Nokia retained leadership position in the overall mobile handsets' market, with 28 per cent share, followed by Samsung (12 per cent) and Micromax (four per cent), in November.
CMR's lead analyst (telecoms practice), Naveen Mishra, says as the device side of the data services ecosystem, signified by the growth in shipments of smartphones and 3G-enabled handsets, reaches a critical mass, telcos in India will need to beef up networks and tie with publishing companies and content developers. "It is important for the three-part ecosystem of device vendors, content companies and telecom service providers to invest in attractive and relevant content packages for the growing segment of 3G-device and smartphone users. This will help grow data consumption and lead to improvement in telco ARPUs," Mishra said.
Total 3G phone shipments touched 15.5 million in the first eleven months of CY 2011, according to CMR analysts, with close to 224 models launched by 26 vendors.
Multi-SIM mobile handset shipments accounted for 54 per cent of the total India mobile handsets market in November 2011. Nokia, a late entrant to the multi-SIM device category, made up by having as many as seven models on offer by November 2011 and now leads the category with 19 per cent market share, followed by Micromax with 7.1 per cent and Karbonn with 6.9 per cent.
"The launch of dual-SIM smartphones is a new trend," said Tarun Pathak, telecom analyst (Monthly Mobile Phones Market Review Program), CMR.
For November last year, CMR estimates that Indian mobile handsets' market recorded sales of 15.4 million units. Nokia retained leadership position in the overall mobile handsets' market, with 28 per cent share, followed by Samsung (12 per cent) and Micromax (four per cent), in November.
CMR's lead analyst (telecoms practice), Naveen Mishra, says as the device side of the data services ecosystem, signified by the growth in shipments of smartphones and 3G-enabled handsets, reaches a critical mass, telcos in India will need to beef up networks and tie with publishing companies and content developers. "It is important for the three-part ecosystem of device vendors, content companies and telecom service providers to invest in attractive and relevant content packages for the growing segment of 3G-device and smartphone users. This will help grow data consumption and lead to improvement in telco ARPUs," Mishra said.
Total 3G phone shipments touched 15.5 million in the first eleven months of CY 2011, according to CMR analysts, with close to 224 models launched by 26 vendors.
Multi-SIM mobile handset shipments accounted for 54 per cent of the total India mobile handsets market in November 2011. Nokia, a late entrant to the multi-SIM device category, made up by having as many as seven models on offer by November 2011 and now leads the category with 19 per cent market share, followed by Micromax with 7.1 per cent and Karbonn with 6.9 per cent.
Strides sells Australia, SE Asia business to Watson Pharma
Bangalore: As part of a larger plan to focus on high-margin injectables, mid-tier pharmaceutical company Strides Arcolab has begun to exit branded generics. The publicly held company on Tuesday announced the sale of its subsidiary, Ascent Pharmahealth Ltd, with operations in Australia and Southeast Asia, to Australia-based Watson Pharmaceuticals for A$375 million (Rs 1,965 crore, approx). Through 2008-10, Strides invested close to $113 million in the asset, with a top line of close to Rs 750 crore, and is exiting at a phenomenal valuation of nearly 2.5 times its top line and 20 times its Ebitda.
The Strides stock gained as much as 17.5 per cent to close at Rs 478.30 a share on the Bombay Stock Exchange after touching a 52-week high of Rs 488 a share in intra-day trading.
Ascent is among the top five generic pharma companies in Australia and is present across several countries in Southeast Asia, including Singapore where it has a manufacturing unit. The unit employs a little over 300 people, has 116 products, mostly in the over-the-counter segment. Watson is an integrated global speciality pharma company engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and branded products focused on urology and women’s health. Strides Arcolab will use the proceeds of this sale to pare its debt of $500 million in half by the end of 2012, including FCCBs of $117 million due by June 2012.
Commenting on the transaction, Arun Kumar, Executive Vice-chairman and Group CEO of Strides Arcolab, said, “The sale of Ascent is a value-enhancing and forward-looking initiative. We have been clear about our intention to focus on our highly attractive steriles segment, which we expect to be our growth engine going forward. The transaction further facilitates the execution of this strategy and unlocks significant value. Further, the proceeds from the transaction considerably strengthen our balance sheet.”
Paul Bisaro, President and CEO of Watson, said, “The acquisition provides Watson a commercial structure in both Australia and Southeast Asia and a broader pipeline of products to support continued growth.” Jefferies International Ltd was the sole financial advisor to Strides Arcolab. Middletons, Herbert Smith LLP and DSK Legal acted as legal counsel.
The Strides stock gained as much as 17.5 per cent to close at Rs 478.30 a share on the Bombay Stock Exchange after touching a 52-week high of Rs 488 a share in intra-day trading.
Ascent is among the top five generic pharma companies in Australia and is present across several countries in Southeast Asia, including Singapore where it has a manufacturing unit. The unit employs a little over 300 people, has 116 products, mostly in the over-the-counter segment. Watson is an integrated global speciality pharma company engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and branded products focused on urology and women’s health. Strides Arcolab will use the proceeds of this sale to pare its debt of $500 million in half by the end of 2012, including FCCBs of $117 million due by June 2012.
Commenting on the transaction, Arun Kumar, Executive Vice-chairman and Group CEO of Strides Arcolab, said, “The sale of Ascent is a value-enhancing and forward-looking initiative. We have been clear about our intention to focus on our highly attractive steriles segment, which we expect to be our growth engine going forward. The transaction further facilitates the execution of this strategy and unlocks significant value. Further, the proceeds from the transaction considerably strengthen our balance sheet.”
Paul Bisaro, President and CEO of Watson, said, “The acquisition provides Watson a commercial structure in both Australia and Southeast Asia and a broader pipeline of products to support continued growth.” Jefferies International Ltd was the sole financial advisor to Strides Arcolab. Middletons, Herbert Smith LLP and DSK Legal acted as legal counsel.
12th Plan to see Rs 1 lakh-cr rise in private investment
New Delhi: In what could mean a big investment opportunity for the construction industry in the years to come, the road transport ministry plans to more than double private participation in highway construction during the 12th Five Year Plan starting April 2012.
The overall investment in the sector will also double to Rs 323,000 crore, but the share of private sector is expected to increase by 10 percentage points.
The working group for the Twelfth Plan has recommended the government to increase private investment in the road sector to Rs 166,738 crore from Rs 62,630 crore in the ongoing 11th five year plan.
This projected increase in private investment will raise the percentage of private-sector contribution in the highway sector to 51 from the present 41. The expenditure in road sector in the 12th Plan will double from Rs 152,201 crore to Rs 323,000 crore.
Recently, the National Highways Authority of India has seen increased interest for road projects, and has been able to award 21 out of 33 projects on a premium. The premium income from these 21 projects would come in between Rs 2,500 crore and Rs 3,000 crore per year — and will increase by five per cent every year till the concession period ends..
A company offering a premium means it is committing to an annual payment to the government over a period of time, instead of seeking a grant for building a road.
A substantial increase in premium income has slashed NHAI’s borrowing requirement by half. The B K Chaturvedi committee had said the highway authority would need to raise Rs 191,000 crore by 2030-31, but now the requirement stands reduced by Rs 1 lakh crore to Rs 83,000 crore.
Industry executives also feel that it will not be difficult for the government to achieve the target of increased private participation. “We (the private sector) are ready to invest money in highway projects because they are least risky,” said a senior executive of a Mumbai-based infrastructure company. “Also, other sectors are neither offering much, and they have lot of policy issues. I think the government’s target of 51 per cent from us is easily achievable.”
India has a highway length of 71,772 km. Of the total length, 24 per cent is of 4-lane and above standard, 52 per cent is of 2-lane standard and 24 per cent length of single and intermediate standard.
The government has also proposed an increase in the existing highway network of 71,772 km to about 85,000 km in the 12th Plan period.
The overall investment in the sector will also double to Rs 323,000 crore, but the share of private sector is expected to increase by 10 percentage points.
The working group for the Twelfth Plan has recommended the government to increase private investment in the road sector to Rs 166,738 crore from Rs 62,630 crore in the ongoing 11th five year plan.
This projected increase in private investment will raise the percentage of private-sector contribution in the highway sector to 51 from the present 41. The expenditure in road sector in the 12th Plan will double from Rs 152,201 crore to Rs 323,000 crore.
Recently, the National Highways Authority of India has seen increased interest for road projects, and has been able to award 21 out of 33 projects on a premium. The premium income from these 21 projects would come in between Rs 2,500 crore and Rs 3,000 crore per year — and will increase by five per cent every year till the concession period ends..
A company offering a premium means it is committing to an annual payment to the government over a period of time, instead of seeking a grant for building a road.
A substantial increase in premium income has slashed NHAI’s borrowing requirement by half. The B K Chaturvedi committee had said the highway authority would need to raise Rs 191,000 crore by 2030-31, but now the requirement stands reduced by Rs 1 lakh crore to Rs 83,000 crore.
Industry executives also feel that it will not be difficult for the government to achieve the target of increased private participation. “We (the private sector) are ready to invest money in highway projects because they are least risky,” said a senior executive of a Mumbai-based infrastructure company. “Also, other sectors are neither offering much, and they have lot of policy issues. I think the government’s target of 51 per cent from us is easily achievable.”
India has a highway length of 71,772 km. Of the total length, 24 per cent is of 4-lane and above standard, 52 per cent is of 2-lane standard and 24 per cent length of single and intermediate standard.
The government has also proposed an increase in the existing highway network of 71,772 km to about 85,000 km in the 12th Plan period.
Subscribe to:
Posts (Atom)