Bhatinda: Mr L.N. Mittal, Chairman and CEO, ArcelorMittal, said that the capacity of Bhatinda refinery could be raised to 18 million tonne per annum (mtpa) in future.
The 9 mtpa Guru Gobind Singh Refinery at Phulkori, Bhatinda, has been built by Hindustan Petroleum Corporation-Mittal Energy joint venture, HPCL-Mittal Energy Ltd.
The $4-billion refinery was dedicated to the nation on Saturday by the Prime Minister, Dr Manmohan Singh.
This established Mr L.N. Mittal as one of the players in the country’s refining segment. With the full commissioning of the refinery, the country’s refining capacity has gone up to 213 mtpa. Bhatinda is the 24th refinery in the country.
Speaking at the occasion, Mr Mittal said, this refinery will not only increase energy security but also establish Punjab as a petrochem hub.
He said a decision on initial public offering will be taken by the joint venture board. "It will eventually happen."
The Government had approved the joint venture in July 2007, and work on construction of the refinery started in early 2008. It started refining crude oil in August 2011 and recently achieved commissioning of the entire project.
The refinery’s first liquid sales happened in December 2011 with dispatch of kerosene and the first solid sales in February 2012 with sale of petroleum coke. The company has 80 per cent offtake agreement with HPCL.
Both the joint venture partners hold 49 per cent each in the company. The rest is held by Indian financial institutions.
HMEL has the capability to cater to Punjab's entire fuel needs and meet the demands of North India. Actual sales will, however, evolve through the sponsor and marketer HPCL. HMEL can also explore the possibility of exports to Pakistan due to its strategic location.
Engineers India Ltd was the project management consultant. It was financed by a consortium of Indian banks led by State Bank of India.
Success in my Habit
Monday, April 30, 2012
India accounts for half of global IT-BPO outsourcing
New Delhi: India is the global leader in the outsourcing industry with half of the world's back office being located here. Indian outsourcing revenue at $59 billion for 2011, accounts for 51% of the global offshore market share, says a report from Tholons Research, a Bangalore based advisory firm.
The report further notes that over the past decade, developing economies such as India and the Philippines have propelled themselves to become leaders in the global outsourcing industry - making them the top two countries in terms of global offshore revenue share and employment. The total direct employment by Indian IT-BPO sector (as of 2011) was 1.98 million and indirect employment was 7.5 million.
Similarly for Philippines, where total outsourcing revenue was $11 billion in 2011, direct IT-BPO employment was 640,000 and indirect at 1.3 million. Philippines has gained a lot in recent years as lot of voice work (call center type of work) has shifted from India to Philippines.
The trend to outsource is likely to accelerate as companies seek third party firms in offshore locations to cut costs and improve performance in global large and small firms.
The figures from India's National Association of Software and Services Companies ( NASSCOM) show worldwide IT and BPO spending in 2011 reached about $574 billion and $158 billion, respectively. From a total of $732 billion only about 15% (or $110 billion) is currently outsourced by global firms to destinations like India, Philippines, China and Malaysia leaving lot of headroom for growth.
Given this potential, several developing economies - particularly in South East Asia as well as Latin America and Africa - have shown interest in actively pursuing the industry given the significant potential of its addressable market.
For instance the Malaysian government and its IT-BPO association-Outsource to Malaysia-have actively reinvented the country's marketing strategy to attract IT-BPO companies in the country when it established the Multi-media Super Corridor (MSC). Under this companies get a tax incentive for a period of 10 years, special telecom and electricity tariffs, R&D grants and so on. Time for India to scale up the game.
The report further notes that over the past decade, developing economies such as India and the Philippines have propelled themselves to become leaders in the global outsourcing industry - making them the top two countries in terms of global offshore revenue share and employment. The total direct employment by Indian IT-BPO sector (as of 2011) was 1.98 million and indirect employment was 7.5 million.
Similarly for Philippines, where total outsourcing revenue was $11 billion in 2011, direct IT-BPO employment was 640,000 and indirect at 1.3 million. Philippines has gained a lot in recent years as lot of voice work (call center type of work) has shifted from India to Philippines.
The trend to outsource is likely to accelerate as companies seek third party firms in offshore locations to cut costs and improve performance in global large and small firms.
The figures from India's National Association of Software and Services Companies ( NASSCOM) show worldwide IT and BPO spending in 2011 reached about $574 billion and $158 billion, respectively. From a total of $732 billion only about 15% (or $110 billion) is currently outsourced by global firms to destinations like India, Philippines, China and Malaysia leaving lot of headroom for growth.
Given this potential, several developing economies - particularly in South East Asia as well as Latin America and Africa - have shown interest in actively pursuing the industry given the significant potential of its addressable market.
For instance the Malaysian government and its IT-BPO association-Outsource to Malaysia-have actively reinvented the country's marketing strategy to attract IT-BPO companies in the country when it established the Multi-media Super Corridor (MSC). Under this companies get a tax incentive for a period of 10 years, special telecom and electricity tariffs, R&D grants and so on. Time for India to scale up the game.
Forex reserves up $1.4 billion
Mumbai: India's foreign exchange reserves increased $1.4 billion to $294 billion in the week ended April 20. The reserves have increased $205 million since the start of this financial year.
Data released by the Reserve Bank of India (RBI) on Friday showed the rise was on the back of foreign currency assets that grew $1.4 billion to $260 billion as on April 20. Foreign currency assets have increased $149 million since the start of this financial year. RBI said the data includes the effect of appreciation or depreciation of non-US currencies held in reserves, such as the euro, sterling and yen.
Gold remained unchanged at $27 billion in the week.
India’s special drawing rights were up $5.2 million to $4.4 billion while the position at International Monetary Fund was also up $3.4 million to $2.9 billion in the same period.
Data released by the Reserve Bank of India (RBI) on Friday showed the rise was on the back of foreign currency assets that grew $1.4 billion to $260 billion as on April 20. Foreign currency assets have increased $149 million since the start of this financial year. RBI said the data includes the effect of appreciation or depreciation of non-US currencies held in reserves, such as the euro, sterling and yen.
Gold remained unchanged at $27 billion in the week.
India’s special drawing rights were up $5.2 million to $4.4 billion while the position at International Monetary Fund was also up $3.4 million to $2.9 billion in the same period.
Allow customers to transfer accounts within bank: RBI to banks
Mumbai: Bank customers who change jobs or locations will find it easier to shift their bank account to the new location now. The Reserve Bank of India (RBI) has made it mandatory for banks to allow transfer of accounts from one branch to another without insisting on opening a fresh account or making the customer undergo the full know your customer process again.
Earlier, since the account holder's information was maintained with local branches, banks used to insist that customers go through the account opening procedure all over again when they shifted to a different location.
"It has been brought to our notice that some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their accounts from one branch of the bank to another branch of the same bank. Such insistence on opening of fresh account or making the customer undergo full KYC process again causes inconvenience to them resulting in poor customer service," RBI said in a circular to all banks. The circular added that given that most bank branches are now on core banking solution, records of a particular customer can be accessed by any branch of the bank.
An official with a new generation private bank, however, said, "We provide 'at par' cheque books to our account holders, which means that the cheques will be treated as local cheques no matter which part of the country they are deposited in. So, it really does not matter if the home branch is in a different city."
With all banks having put in place a core banking solution ( CBS) through which all account holder information is maintained in a centralized database accessible across branches, ATMs and internet, the home branch concept has lost relevance. But some private banks charge high fees for services accessed outside the home branch. For instance, most new generation private banks charge a fee for cash withdrawal at branches other than the home branch. Also, some lenders insist that changes in account services or document submission has to be done at the home branch.
In its monetary policy on April 17, RBI had asked banks to have a central customer ID to facilitate portability of accounts and ensure that all customer information is centralized. Some banks are seeing this as a precursor to having a central identity which will help customers transfer accounts across banks without having to repeat the KYC procedure.
"Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC has been done for the concerned account. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him/her upon such transfer by the transferee branch," RBI said.
Earlier, since the account holder's information was maintained with local branches, banks used to insist that customers go through the account opening procedure all over again when they shifted to a different location.
"It has been brought to our notice that some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their accounts from one branch of the bank to another branch of the same bank. Such insistence on opening of fresh account or making the customer undergo full KYC process again causes inconvenience to them resulting in poor customer service," RBI said in a circular to all banks. The circular added that given that most bank branches are now on core banking solution, records of a particular customer can be accessed by any branch of the bank.
An official with a new generation private bank, however, said, "We provide 'at par' cheque books to our account holders, which means that the cheques will be treated as local cheques no matter which part of the country they are deposited in. So, it really does not matter if the home branch is in a different city."
With all banks having put in place a core banking solution ( CBS) through which all account holder information is maintained in a centralized database accessible across branches, ATMs and internet, the home branch concept has lost relevance. But some private banks charge high fees for services accessed outside the home branch. For instance, most new generation private banks charge a fee for cash withdrawal at branches other than the home branch. Also, some lenders insist that changes in account services or document submission has to be done at the home branch.
In its monetary policy on April 17, RBI had asked banks to have a central customer ID to facilitate portability of accounts and ensure that all customer information is centralized. Some banks are seeing this as a precursor to having a central identity which will help customers transfer accounts across banks without having to repeat the KYC procedure.
"Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC has been done for the concerned account. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him/her upon such transfer by the transferee branch," RBI said.
Indian construction companies exploring opportunities in Lanka
Colombo: Sri Lankan growth rate has slightly dipped, it also has a draconian Non Performing Assets Bill, but these have not stood in the way of many companies betting on the country.
Construction is booming – not in the same manner as in India – but still big enough for some of the big names to have a look.
Showcasing profiles
Joining the exploration fray in the construction sector, for the past three days, were about 50 Indian companies.
They participated in the exposition showcasing their profile in building materials, construction equipment and technologies, electrical and sanitary fittings, flooring and roofing material landscaping, consultancy, property development and financial services for construction.
3-day event
The three-day event comprised exhibition, conference and buyer-seller meet.
The purpose of the event was to promote and facilitate trade and business in construction and construction materials sector, provide a platform to introduce the Indian entrepreneurs with their Sri Lankan counterparts, exchange of ideas and facilitate G2G, G2B and B2B interaction on various issues pertaining to the construction industry of both the countries.
On Lankan NPAs
The concerns for foreign investment here is a draconian law, which allows the State to take over non-performing assets if the company had availed of any concessions from the State. The other is the experience of the Indian engineering giant L&T.
Last year, L&T withdrew its country representative from Colombo following the inability of the company to begin a construction project about three years, after it was first conceived.
It decided to base the representative in Chennai, from where he can monitor developments in Sri Lanka.
L&T experience
L&T had come into Sri Lanka before the conclusion of the war with the LTTE and offered to build the biggest commercial/residential complex in the country.
The company was enthusiastically received and it even bought a chunk of land (1.33 acres) before it ran into trouble which resulted in the project being held up inordinately.
Trade up 65% y-o-y
India-Sri Lanka bilateral trade has increased by over 65 per cent last year to reach close to $5 billion, the Indian High Commissioner to Sri Lanka, Mr Ashok K. Kantha, has said.
Indian companies have invested about $150 million in Sri Lanka last year. Both countries are witnessing a boom in real estate segment and construction industry, which provides opportunities for enhanced cooperation.
He outlined the opportunities for Indian companies in Sri Lanka and vice-versa.
India Investrade 2012
Mr Kantha was speaking at the recently concluded ‘India Investrade 2012: An exposition and buyer seller meet on realty construction & construction materials,' organised here by the Indian Chamber of Commerce, Kolkata.
The event is supported by the Union Ministry of Commerce & Industry, and the Sri Lankan Ministry of Construction, Engineering Services, Housing & Common Amenities, Federation of Chambers of Commerce and Industry of Sri Lanka and The National Chamber of Commerce of Sri Lanka.
At the inauguration, Mr Basil Rajapaksa, Sri Lankan Minister of Economic Development, said that the Sri Lankan economy has been growing over eight per cent in the past two years.
He said India has achieved a lot in the construction sector and the Indian companies can play a role in the Sri Lankan market by partnering with Sri Lankan companies.
Commenting on the India-Sri Lanka Free Trade Agreement, Mr Rajapaksa said the FTA has been helpful in rapid growth of bilateral trade and invited the Indian companies to invest in Sri Lanka in sectors such as construction, tourism, education and skill development.
Construction is booming – not in the same manner as in India – but still big enough for some of the big names to have a look.
Showcasing profiles
Joining the exploration fray in the construction sector, for the past three days, were about 50 Indian companies.
They participated in the exposition showcasing their profile in building materials, construction equipment and technologies, electrical and sanitary fittings, flooring and roofing material landscaping, consultancy, property development and financial services for construction.
3-day event
The three-day event comprised exhibition, conference and buyer-seller meet.
The purpose of the event was to promote and facilitate trade and business in construction and construction materials sector, provide a platform to introduce the Indian entrepreneurs with their Sri Lankan counterparts, exchange of ideas and facilitate G2G, G2B and B2B interaction on various issues pertaining to the construction industry of both the countries.
On Lankan NPAs
The concerns for foreign investment here is a draconian law, which allows the State to take over non-performing assets if the company had availed of any concessions from the State. The other is the experience of the Indian engineering giant L&T.
Last year, L&T withdrew its country representative from Colombo following the inability of the company to begin a construction project about three years, after it was first conceived.
It decided to base the representative in Chennai, from where he can monitor developments in Sri Lanka.
L&T experience
L&T had come into Sri Lanka before the conclusion of the war with the LTTE and offered to build the biggest commercial/residential complex in the country.
The company was enthusiastically received and it even bought a chunk of land (1.33 acres) before it ran into trouble which resulted in the project being held up inordinately.
Trade up 65% y-o-y
India-Sri Lanka bilateral trade has increased by over 65 per cent last year to reach close to $5 billion, the Indian High Commissioner to Sri Lanka, Mr Ashok K. Kantha, has said.
Indian companies have invested about $150 million in Sri Lanka last year. Both countries are witnessing a boom in real estate segment and construction industry, which provides opportunities for enhanced cooperation.
He outlined the opportunities for Indian companies in Sri Lanka and vice-versa.
India Investrade 2012
Mr Kantha was speaking at the recently concluded ‘India Investrade 2012: An exposition and buyer seller meet on realty construction & construction materials,' organised here by the Indian Chamber of Commerce, Kolkata.
The event is supported by the Union Ministry of Commerce & Industry, and the Sri Lankan Ministry of Construction, Engineering Services, Housing & Common Amenities, Federation of Chambers of Commerce and Industry of Sri Lanka and The National Chamber of Commerce of Sri Lanka.
At the inauguration, Mr Basil Rajapaksa, Sri Lankan Minister of Economic Development, said that the Sri Lankan economy has been growing over eight per cent in the past two years.
He said India has achieved a lot in the construction sector and the Indian companies can play a role in the Sri Lankan market by partnering with Sri Lankan companies.
Commenting on the India-Sri Lanka Free Trade Agreement, Mr Rajapaksa said the FTA has been helpful in rapid growth of bilateral trade and invited the Indian companies to invest in Sri Lanka in sectors such as construction, tourism, education and skill development.
Sunday, April 29, 2012
MRF starts production at Rs 900-cr plant in TN
Chennai: MRF has started production at its new plant in Tiruchi (Tamil Nadu).
The company has invested around Rs 900 crore on the 200-acre plant, which will manufacture a full range of tyres, including truck tyres and radials. It will cater to both domestic and export requirements.
The plant has just begun rolling out tyres, for both commercial and non-commercial vehicles. “Ramp-up is happening. We expect it to reach full capacity in six months,” said Mr Koshy Varghese, Executive Vice-President – Marketing.
This facility was proposed as its existing six manufacturing units were operating at full capacity.
MRF's other manufacturing units are in Arakonam, Tiruvottiyur (Tamil Nadu), Medak (Andhra Pradesh), Goa, Kottayam (Kerala) and Puducherry.
Net sales, profit up
The company has posted a 25 per cent increase (year-on-year) in net sales at Rs 3,264 crore. Net profit rose 68 per cent to Rs 150 crore.
Mr Varghese says the driver of growth this quarter has been the replacement market. According to an analyst, the after-market sales give pricing power to companies, enabling them to post high margins.
Rubber prices have also cooled off substantially, from the peak of Rs 240 a kg to Rs 190 now.
This has had a positive impact on operating margins which have grown from 8.4 per cent a year ago to 10 per cent now.
MRF's share price was down 1.77 per cent to close at Rs 11,234.20 on the BSE on Thursday.
Morgan Stanley study indicates India's urbanisation trend intact
Morgan Stanley today announced the findings of its latest AlphaWise work concluding that India continues to urbanize at a strong pace driven by a combination of uptrending consumption, robust job creation and growing financial penetration.
The study showed that India's urban population has grown by 2.8ppt annually over the last decade. Urbanization is driven by job offerings and infrastructure creation that lead to population growth. With this growth, it creates income, savings and consumption. "The findings will form the basis for medium-long term sector trends," says Ridham Desai, Head of India Research at Morgan Stanley. "These growth drivers will play a key role in forming investment views at the sector and stock levels."
The research notes that at the aggregate level, the Morgan Stanley's proprietary AlphaWise City Vibrancy Index reported growth of 5 percentage points. Within the top 50 cities, consumer services like retail book stores, restaurants (including fast-food chains) and multiplexes have seen the fastest growth during the past six-month period within the consumption component of the vibrancy index. To us, this reaffirms the underlying growth in discretionary consumption.
Among other key findings of the report, all three vibrancy index components (consumption, job opportunities, and financial penetration) reported sequential acceleration pointing that urbanization trends are still intact in India. Also, the pace of growth of each of the components has been 8%, 4% and 3%, respectively. Of the three components, job opportunities index has grown the fastest. The report reveals that Bangalore, Chandigarh, Hyderabad, Pune and Chennai are the top 5 vibrant cities. The relative vibrancy score for cities like Ludhiana and Meerut is inching close to scores of cities like Mumbai and Delhi, respectively.
Gujarat CM inaugurates food processing plant at Vadnagar
Gandhinagar: Himalaya Industries Ltd on Thursday launched India's biggest food processing plant set up at an investment of Rs 170 crore at Vadnagar, the home town of the Chief Minister, Mr Narendra Modi.
Branded as ‘Himalaya Fresh' the products will be manufactured at the company's plant at Sultanpur near Vadnagar. This is the first industrial project in this unindustrialised area, Mr Modi said while inaugurating the facility set up by the Himachal Pradesh-based Himalaya International, an official release said here.
The plant will process eatables such as mushroom, yoghurt, milk cheese and potato chips, French Fries etc.
Branded as ‘Himalaya Fresh' the products will be manufactured at the company's plant at Sultanpur near Vadnagar. This is the first industrial project in this unindustrialised area, Mr Modi said while inaugurating the facility set up by the Himachal Pradesh-based Himalaya International, an official release said here.
The plant will process eatables such as mushroom, yoghurt, milk cheese and potato chips, French Fries etc.
Karnataka exploring high-speed rail connectivity with Japanese help
Bangalore: Karnataka is exploring high speed rail connectivity between Bangalore — Belgaum, and Gulbarga.
Addressing a press conference to announce the Global Investors Meet (GIM) to be held during June 7-8 in Bangalore, Mr Murgesh R. Nirani, Karnataka's Minister for Large and Medium Industries, said: “During our investment road show in Japan, we invited the Japanese to invest, especially in high speed rail connectivity, and welcomed Japanese expertise in consultancy and execution of rail and road projects.”
“The high speed rail projects on public-private partnership (PPP) mode is being explored to connect Bangalore – Belgaum along the existing National Highway 4 there by linking Tumkur, Chitradurga, Davanagere, Hubli-Dharwad and Belgaum and another rail project linking Bangalore and Gulbarga,” he added.
Delegation
During the road show, the delegation met Dr Diazo Nozawa, who is associated with the first Bullet Train in Japan (since 1964) and Japan International Consultants for Transportation which provides technical consultancy for projects.
“There is a possibility of high speed connectivity between Bangalore-Belgaum, Bangalore-Gulbarga in future and this would reduce the travel time to the state capital significantly from these Tier II cities,” Mr Nirani said.
Tunnel
For better connectivity to Mangalore port from Bangalore, Hassan and Mysore, Japan International Consultants has been approached to construct a tunnel from Sakleshpur to Mangalore to avoid going up the Western Ghats.
Mr Nirani said the tunnel can reduce the travel time sharply and cut down the distance by 30 kilometres.
Japanese city
During the road show in Japan, the Karnataka delegation met Jetro officials. Mr Nirani said the Government has assured all assistance for setting up Japanese city in and around Bangalore.
Since there is huge Japanese investment in Bangalore such as Toyota Motors and now Honda Motors, the Japanese investors have approached the Government for land to develop a dedicated Japanese township.
The State is the third highest in foreign direct investment (FDI) inflow from Japan and already there is a presence of around 182 Japanese companies in Karnataka. Many Japanese companies are looking at Asia as a potential market and Karnataka is the preferred destination.
Mr Nirani said: “We have identified three locations for them and they are to come back to us for firming up the proposal.” The Karnataka government has identified land in Narsapura, Vemgal and near Tumkur.
“They have sought 500 to 1,000 acres for setting up residences, schools, hotels and recreation areas,” he added.
Peripheral ring road
Mr Nirani said preliminary talks were held with infrastructure companies to explore construction of a peripheral ring road around Bangalore.
A few Japanese companies have already built the Hyderabad Growth Corridor Limited (HGCL) in Hyderabad. We are exploring a similar one for Karnataka, he added.
Addressing a press conference to announce the Global Investors Meet (GIM) to be held during June 7-8 in Bangalore, Mr Murgesh R. Nirani, Karnataka's Minister for Large and Medium Industries, said: “During our investment road show in Japan, we invited the Japanese to invest, especially in high speed rail connectivity, and welcomed Japanese expertise in consultancy and execution of rail and road projects.”
“The high speed rail projects on public-private partnership (PPP) mode is being explored to connect Bangalore – Belgaum along the existing National Highway 4 there by linking Tumkur, Chitradurga, Davanagere, Hubli-Dharwad and Belgaum and another rail project linking Bangalore and Gulbarga,” he added.
Delegation
During the road show, the delegation met Dr Diazo Nozawa, who is associated with the first Bullet Train in Japan (since 1964) and Japan International Consultants for Transportation which provides technical consultancy for projects.
“There is a possibility of high speed connectivity between Bangalore-Belgaum, Bangalore-Gulbarga in future and this would reduce the travel time to the state capital significantly from these Tier II cities,” Mr Nirani said.
Tunnel
For better connectivity to Mangalore port from Bangalore, Hassan and Mysore, Japan International Consultants has been approached to construct a tunnel from Sakleshpur to Mangalore to avoid going up the Western Ghats.
Mr Nirani said the tunnel can reduce the travel time sharply and cut down the distance by 30 kilometres.
Japanese city
During the road show in Japan, the Karnataka delegation met Jetro officials. Mr Nirani said the Government has assured all assistance for setting up Japanese city in and around Bangalore.
Since there is huge Japanese investment in Bangalore such as Toyota Motors and now Honda Motors, the Japanese investors have approached the Government for land to develop a dedicated Japanese township.
The State is the third highest in foreign direct investment (FDI) inflow from Japan and already there is a presence of around 182 Japanese companies in Karnataka. Many Japanese companies are looking at Asia as a potential market and Karnataka is the preferred destination.
Mr Nirani said: “We have identified three locations for them and they are to come back to us for firming up the proposal.” The Karnataka government has identified land in Narsapura, Vemgal and near Tumkur.
“They have sought 500 to 1,000 acres for setting up residences, schools, hotels and recreation areas,” he added.
Peripheral ring road
Mr Nirani said preliminary talks were held with infrastructure companies to explore construction of a peripheral ring road around Bangalore.
A few Japanese companies have already built the Hyderabad Growth Corridor Limited (HGCL) in Hyderabad. We are exploring a similar one for Karnataka, he added.
India launches all-weather satellite RISAT-1
New Delhi: India's first indigenous all-weather Radar Imaging Satellite (Risat-1) was launched successfully on board the Polar Satellite Launch Vehicle (PSLV)-C19 from Sriharikota in Andhra Pradesh, on April 26, 2012. Its images will facilitate agriculture and disaster management.
In a textbook launch, the 1,858 kg spacecraft, the country's first microwave remote sensing satellite was injected into orbit from Satish Dhawan Space Centre, Sriharikota, around 90 km from Chennai.
RISAT-1, a result of 10 years of effort by the Indian Space Research Organisation (ISRO), has the capability to take images of the earth during day and night as well as in cloudy conditions. The heaviest satellite ever lifted, RISAT-1 through its microwave image sensing technology would assist in crop prediction.
"I am extremely happy to announce that the PSLV C-19 mission is a grand success…It injected precisely India's first radar imaging satellite into the desired orbit," as per K Radhakrishnan, Chairman, ISRO.
The approved cost of Risat-1, including its development, is Rs 378 crore (US$ 72.00 million), while Rs 120 crore (US$ 22.84 million) has been spent to build the rocket (PSLV-C19), making it a Rs 498 crore (US$ 94.83 million) mission. The spacecraft, which would be parked at its final orbit of 536 km altitude, has a mission life of five years and would circle the earth 14 times a day.
In a textbook launch, the 1,858 kg spacecraft, the country's first microwave remote sensing satellite was injected into orbit from Satish Dhawan Space Centre, Sriharikota, around 90 km from Chennai.
RISAT-1, a result of 10 years of effort by the Indian Space Research Organisation (ISRO), has the capability to take images of the earth during day and night as well as in cloudy conditions. The heaviest satellite ever lifted, RISAT-1 through its microwave image sensing technology would assist in crop prediction.
"I am extremely happy to announce that the PSLV C-19 mission is a grand success…It injected precisely India's first radar imaging satellite into the desired orbit," as per K Radhakrishnan, Chairman, ISRO.
The approved cost of Risat-1, including its development, is Rs 378 crore (US$ 72.00 million), while Rs 120 crore (US$ 22.84 million) has been spent to build the rocket (PSLV-C19), making it a Rs 498 crore (US$ 94.83 million) mission. The spacecraft, which would be parked at its final orbit of 536 km altitude, has a mission life of five years and would circle the earth 14 times a day.
Made-in-India Google Drive set to roam worldwide web
Mumbai: After years of speculation, internet search giant Google has announced the launch of Google Drive. The cloud storage service will be rolled out globally in the next few weeks.
The launch is special for India, as Google’s engineering teams in Bangalore and Hyderabad conceptualised and built the centralised management tools, security features, ability to search within a document and billing systems for Google Drive.
For those already using Google Docs, using Drive will be easier. Google Docs is built into Google Drive. Users can share content with others, and add and reply to comments on PDFs, images, video files, etc. They can receive notifications when others comment on the items shared.
The Google search option, too, is built in. It will allow search by keyword and filter by file type, owner and more. Drive can recognise text in scanned documents using Optical Character Recognition (OCR) technology. “We also use image recognition so that if you drag and drop photos from your Grand Canyon trip into Drive, you can later search [for grand canyon] and photos of its gorges should pop up. This technology is still in its early stages, and we expect it to get better over time,” said Sunder Pichai, SVP, Chrome and Apps, in his blog.
A free account of Google Drive will give users five-GB space. For more space, users would have to pay. One can upgrade to 25 GB for $2.49/month, 100 GB for $4.99/month or even one TB for $49.99/month. Those who upgrade to a paid account, their Gmail account storage will expand to 25 GB.
This time, Google has been a tad late in coming out with its offering. Apple’s iCloud, Dropbox and Microsoft’s Skydrive have been around for some time.
Mark Little, principal analyst at Ovum, said with Drive, Google recognised the potential of shared cloud storage as a consumer hub or open platform. That, he said, could be central to developing third-party apps such as video editing, sending faxes and creating websites, with potential for a far greater range of applications from its busy community of third-party developers.
“For Google, the platform potential of Drive is of strategic importance, leveraging its developer strengths and competitive pricing (50 per cent cheaper than Apple’s iCloud in some cases) to drive penetration of its cloud offering via both consumer and enterprise channels. This is a major challenge to Apple’s iCloud and others whose propositions are selling cloud storage as a useful ancillary to using their applications,” said Little.
The launch is special for India, as Google’s engineering teams in Bangalore and Hyderabad conceptualised and built the centralised management tools, security features, ability to search within a document and billing systems for Google Drive.
For those already using Google Docs, using Drive will be easier. Google Docs is built into Google Drive. Users can share content with others, and add and reply to comments on PDFs, images, video files, etc. They can receive notifications when others comment on the items shared.
The Google search option, too, is built in. It will allow search by keyword and filter by file type, owner and more. Drive can recognise text in scanned documents using Optical Character Recognition (OCR) technology. “We also use image recognition so that if you drag and drop photos from your Grand Canyon trip into Drive, you can later search [for grand canyon] and photos of its gorges should pop up. This technology is still in its early stages, and we expect it to get better over time,” said Sunder Pichai, SVP, Chrome and Apps, in his blog.
A free account of Google Drive will give users five-GB space. For more space, users would have to pay. One can upgrade to 25 GB for $2.49/month, 100 GB for $4.99/month or even one TB for $49.99/month. Those who upgrade to a paid account, their Gmail account storage will expand to 25 GB.
This time, Google has been a tad late in coming out with its offering. Apple’s iCloud, Dropbox and Microsoft’s Skydrive have been around for some time.
Mark Little, principal analyst at Ovum, said with Drive, Google recognised the potential of shared cloud storage as a consumer hub or open platform. That, he said, could be central to developing third-party apps such as video editing, sending faxes and creating websites, with potential for a far greater range of applications from its busy community of third-party developers.
“For Google, the platform potential of Drive is of strategic importance, leveraging its developer strengths and competitive pricing (50 per cent cheaper than Apple’s iCloud in some cases) to drive penetration of its cloud offering via both consumer and enterprise channels. This is a major challenge to Apple’s iCloud and others whose propositions are selling cloud storage as a useful ancillary to using their applications,” said Little.
Nissan to make India export hub
New Delhi: Japanese auto major Nissan Motor wants to become the largest car exporter from India, a senior executive said.
The second largest carmaker in Japan is also planning to make India the launch pad for its entry level low-cost brand Datsun.
Nissan is the fastest growing exporter of cars from India, in a country where South Korean Hyundai Motor and Maruti Suzuki India are now the leading car exporters. Nissan exports have doubled to 1,00,909 cars in the last fiscal driven by strong demand for compact cars from Europe and Latin American markets.
Nissan began to export cars in 2010 from Chennai and currently ships 85% of its production to overseas markets. Its wholly-owned Indian subsidiary, Nissan Motor India (NMIPL), has now started shipping its sedan model Nissan Sunny after the huge success of its 'made in India' Micra hatchback, which is now sold in over 100 countries.
It exports fully-built cars such as Micra from Chennai, its strategic production hub for Africa, Europe and other Western markets. The company has now started exporting completely knocked down kits of its sedan, Sunny, to Egypt. These kits from India would be assembled by the local Nissan subsidiary abroad.
Speaking to ET, NMIPL Managing Director Takayuki Ishida said: "We have ambitious plans for India. Exports from India have been a huge success so far, and we want to increase it with new models, as trans-continental markets post stronger demand for smaller cars. We plan to increase our production to over four lakh cars, most of which would be meant for exports."
Currently, the company produces three lakh units under the Renault-Nissan global alliance joint plant in Chennai. About 85% of the production is meant to be exported to markets in Europe, Asia and Africa. It eventually aims to pip South Korean carmaker Hyundai as the largest exporter from India, which has shipped 2.37 lakh last fiscal.
"We are readying several markets to increase export of cars manufactured in India. We will also expand our product portfolio by launching several new cars. Many of these would be targeting overseas market and India could be the sole production centre in Asia," Ishida said.
Analysts say that many car companies in India have great potential to tap overseas markets. "India enjoys tremendous advantages of cost competitiveness due to cheaper labour. The added advantage of huge volumes enjoyed by Hyundai and Maruti Suzuki allow them to export more and take competitive advantage in overseas market. Likewise, Nissan also has a huge product portfolio and eventually would become a major player in exports market," said a Mumbai-based auto analyst with a brokerage firm.
Nissan is currently developing a small car of Rs 2-4 lakh to take on models such as Maruti Suzuki Alto and Hyundai Eon. Its manufacturing plant at Oragadam in Chennai would make Datsun cars for local and export markets, even as the company is considering a new factory to manufacture the new low-cost brand.
Datsun, expected to be a high-volume product targeting emerging economies, is expected to roll out by mid-2014. "We are developing the car keeping in mind the needs of emerging markets such as India, Brazil and Russia. The production base here is expected to meet the overseas demand for Nissan cars," Ishida added.
The second largest carmaker in Japan is also planning to make India the launch pad for its entry level low-cost brand Datsun.
Nissan is the fastest growing exporter of cars from India, in a country where South Korean Hyundai Motor and Maruti Suzuki India are now the leading car exporters. Nissan exports have doubled to 1,00,909 cars in the last fiscal driven by strong demand for compact cars from Europe and Latin American markets.
Nissan began to export cars in 2010 from Chennai and currently ships 85% of its production to overseas markets. Its wholly-owned Indian subsidiary, Nissan Motor India (NMIPL), has now started shipping its sedan model Nissan Sunny after the huge success of its 'made in India' Micra hatchback, which is now sold in over 100 countries.
It exports fully-built cars such as Micra from Chennai, its strategic production hub for Africa, Europe and other Western markets. The company has now started exporting completely knocked down kits of its sedan, Sunny, to Egypt. These kits from India would be assembled by the local Nissan subsidiary abroad.
Speaking to ET, NMIPL Managing Director Takayuki Ishida said: "We have ambitious plans for India. Exports from India have been a huge success so far, and we want to increase it with new models, as trans-continental markets post stronger demand for smaller cars. We plan to increase our production to over four lakh cars, most of which would be meant for exports."
Currently, the company produces three lakh units under the Renault-Nissan global alliance joint plant in Chennai. About 85% of the production is meant to be exported to markets in Europe, Asia and Africa. It eventually aims to pip South Korean carmaker Hyundai as the largest exporter from India, which has shipped 2.37 lakh last fiscal.
"We are readying several markets to increase export of cars manufactured in India. We will also expand our product portfolio by launching several new cars. Many of these would be targeting overseas market and India could be the sole production centre in Asia," Ishida said.
Analysts say that many car companies in India have great potential to tap overseas markets. "India enjoys tremendous advantages of cost competitiveness due to cheaper labour. The added advantage of huge volumes enjoyed by Hyundai and Maruti Suzuki allow them to export more and take competitive advantage in overseas market. Likewise, Nissan also has a huge product portfolio and eventually would become a major player in exports market," said a Mumbai-based auto analyst with a brokerage firm.
Nissan is currently developing a small car of Rs 2-4 lakh to take on models such as Maruti Suzuki Alto and Hyundai Eon. Its manufacturing plant at Oragadam in Chennai would make Datsun cars for local and export markets, even as the company is considering a new factory to manufacture the new low-cost brand.
Datsun, expected to be a high-volume product targeting emerging economies, is expected to roll out by mid-2014. "We are developing the car keeping in mind the needs of emerging markets such as India, Brazil and Russia. The production base here is expected to meet the overseas demand for Nissan cars," Ishida added.
Mini-trucks to drive commercial vehicles sales
Chennai: Commercial vehicle sales in India are set to double to 1.6 million units by 2016-17, driven by mini trucks, says Ernst & Young.
Last year, the commercial vehicle industry in the country grew at 8 per cent to 809,000 units. This year it is expected to post 10 per cent growth, said Mr Rakesh Batra, National Leader - Automotive Sector, Ernst & Young. “Things will pick up after the second quarter. The third and fourth quarters, especially, will see strong growth.”
In the next five years, the commercial vehicle industry is expected to grow at a CAGR of 15 per cent, according to an E&Y report ‘Mega trends shaping the Indian commercial vehicle industry’. A chunk of this growth will come from mini trucks or small commercial vehicles, said Mr Batra.
In the last three-four years, the SCV segment (sub 1-tonne load factor) has been growing at 30 per cent, though on a small base. The major players in the space are Tata Ace and Mahindra Maximo. Ashok Leyland too launched the light commercial vehicle Dost early this year (1.25 tonne).
“In the next few years, SCV growth will settle down to 20 per cent.”
The ratio of mini trucks to the overall number of trucks is 1.25 in India. In the developed countries, it is around 10:1, says Mr Batra. The ration is 4:1 in the emerging markets of Russia and Brazil.
Although one cannot predict the SCV density in India in the coming years, the experience of emerging markets suggests a similar story evolving here too, said Mr Batra.
Last year, the commercial vehicle industry in the country grew at 8 per cent to 809,000 units. This year it is expected to post 10 per cent growth, said Mr Rakesh Batra, National Leader - Automotive Sector, Ernst & Young. “Things will pick up after the second quarter. The third and fourth quarters, especially, will see strong growth.”
In the next five years, the commercial vehicle industry is expected to grow at a CAGR of 15 per cent, according to an E&Y report ‘Mega trends shaping the Indian commercial vehicle industry’. A chunk of this growth will come from mini trucks or small commercial vehicles, said Mr Batra.
In the last three-four years, the SCV segment (sub 1-tonne load factor) has been growing at 30 per cent, though on a small base. The major players in the space are Tata Ace and Mahindra Maximo. Ashok Leyland too launched the light commercial vehicle Dost early this year (1.25 tonne).
“In the next few years, SCV growth will settle down to 20 per cent.”
The ratio of mini trucks to the overall number of trucks is 1.25 in India. In the developed countries, it is around 10:1, says Mr Batra. The ration is 4:1 in the emerging markets of Russia and Brazil.
Although one cannot predict the SCV density in India in the coming years, the experience of emerging markets suggests a similar story evolving here too, said Mr Batra.
Ranbaxy launches anti-malaria drug
New Delhi: Ranbaxy Laboratories, India’s top drug maker by sales, today launched a drug to treat malaria. Claimed to be the first original drug developed by an Indian entity, Synriam, the branded anti-malarial combination, will offer a more effective and shorter drug regimen to patients. The drug has been approved for use on adults.
According to Ranbaxy, the product is undergoing final stages of clinical trials in Africa, a region that accounts for 90 per cent of malaria-related deaths globally. India, however, accounts for 75 per cent of the 2.5 million cases of malaria reported in the Southeast Asia. Synriam would cost Rs 130 for a complete course (one tablet each for three days), Arun Sawhney, chief executive officer and managing director of Ranbaxy, said.
The company did not disclose the market potential of the medicine, as malaria medicines, by and large, are supplied through government channels. Ranbaxy expects the product to be included in government supplies soon. “We do not expect revenues from Synriam to have a major impact on our balance sheet. It is our CSR (corporate social responsibility) drug, as our prices will be the lowest among similar drugs,” Sawhney said.
Of the 17 medicines approved by the World Health Organisation for treatment of malaria, more than half are supplied by Indian drug companies such as Cipla, Ipca Laboratories and Ajanta Pharma. Other players include multinationals such as Sanofi Aventis and Novartis. A WHO pre-qualification is essential for including a malaria drug under any global programme. Ranbaxy also needs this international approval, if it has to supply its medicine for the treatment of one of the most fatal forms of malaria, falciparum malaria infection.
Ranbaxy got involved with the research project initiated by Medicines for Malaria Venture (MMV), a Geneva-based not-for-profit foundation, when Swiss drug multinational Roche, the original industry partner, decided to hand over the potential drug candidate to it.
Four years later, MMV stopped funding the project and transferred the rights for development and marketing of the medicine to Ranbaxy after it reviewed the progress of clinical trials in November 2006. According to MMV’s annual report for 2006, the decision was taken after “the review of the preliminary data and other portfolio priorities”. Ranbaxy roped in the department of science and technology (DST) to part fund the project.
Sawhney said the development cost of the drug was $30 million (Rs 150 crore). Of this, Rs 5 crore came in as DST grant.
The Ranbaxy-DST agreement necessitates the company supplying the medicine for use by government channels at a much lower rate. While Sawhney said the company was yet to work out the pricing formula with DST, government sources said Ranbaxy had to supply the drug at a price 10 per cent more than the actual cost of production. If the drug is exported, DST would be entitled to three per cent of the net profit earned by Ranbaxy.
Sudershan Arora, president of R&D, Ranbaxy, said the company expected to complete the final clinical trials by the first quarter of 2013.
Ports may get Rs 1.8 lakh crore investment in 12th plan
New Delhi: The government is looking at an investment of over Rs 1,83,000 crore in ports in the 12th Five-Year Plan, most of which will come from the private sector, for a capacity addition of 1,440 million tonnes. According to the shipping ministry, the country's 13 major ports will require about Rs 77,000 crore to raise capacity by 527 million tonnes.
The requirement of minor ports is estimated atRs 1,04,808 crore for a capacity addition of 913 million tonnes. The investment plan, which is double the funds the sector received in the 11th Plan period, is likely to be approved by the Planning Commission in a few weeks, an official told ET. Of the envisaged investment in major ports, Rs 15,000 crore is likely to be generated through internal resources, Rs 6,294 crore through extra budgetary resources and Rs 4,338 crore through government funding.
The private sector is expected to pump inRs 51,000 crore. The capacity of Indian ports at the end of fiscal 2011-12 stood at 1,247 million tonnes, which is likely to go up to 2,686 million tonnes by 2017, the end of current Five-year Plan period. Experts say that if policy and clearance issues do not play spoilsport, as was the case in the first three years of the 11th Plan, the government will be on track to add 3.2 billion tonnes in capacity by 2020, a target set under its Maritime Agenda 2020.
"The proportion of investment in 10th Plan was only 50% of the target, as compared to 125% capacity addition. Given the delay in implementation of projects, capacity addition and investment is likely to be in the range of 70-80% of the target for next Plan," said Samir Kanabar, partner at Ernst and Young. Essar Ports, one of the biggest private players in the sector, plans to raise capacity by 70 million tonnes over the next two years with an investment of over Rs 4,000 crore.
"Government has to play a major role in materialisation of these planned investments, as its role will be more as a facilitator for formulating investment-friendly policies and in expediting process of clearances and approvals for port development," Essar Ports managing director Rajiv Agarwal said. He said that 80% of the funds required for capacity expansion in both major and minor ports is expected from the private sector.
The requirement of minor ports is estimated atRs 1,04,808 crore for a capacity addition of 913 million tonnes. The investment plan, which is double the funds the sector received in the 11th Plan period, is likely to be approved by the Planning Commission in a few weeks, an official told ET. Of the envisaged investment in major ports, Rs 15,000 crore is likely to be generated through internal resources, Rs 6,294 crore through extra budgetary resources and Rs 4,338 crore through government funding.
The private sector is expected to pump inRs 51,000 crore. The capacity of Indian ports at the end of fiscal 2011-12 stood at 1,247 million tonnes, which is likely to go up to 2,686 million tonnes by 2017, the end of current Five-year Plan period. Experts say that if policy and clearance issues do not play spoilsport, as was the case in the first three years of the 11th Plan, the government will be on track to add 3.2 billion tonnes in capacity by 2020, a target set under its Maritime Agenda 2020.
"The proportion of investment in 10th Plan was only 50% of the target, as compared to 125% capacity addition. Given the delay in implementation of projects, capacity addition and investment is likely to be in the range of 70-80% of the target for next Plan," said Samir Kanabar, partner at Ernst and Young. Essar Ports, one of the biggest private players in the sector, plans to raise capacity by 70 million tonnes over the next two years with an investment of over Rs 4,000 crore.
"Government has to play a major role in materialisation of these planned investments, as its role will be more as a facilitator for formulating investment-friendly policies and in expediting process of clearances and approvals for port development," Essar Ports managing director Rajiv Agarwal said. He said that 80% of the funds required for capacity expansion in both major and minor ports is expected from the private sector.
Publicis Groupe acquires India's Indigo Consulting
Mumbai: Global communications giant Publicis Groupe has acquired Indigo Consulting, one of the leading digital marketing and web development agencies in India, for an undisclosed amount on Tuesday.
While Indigo will operate as a unit within the Leo Burnett Group in India and will retain its name, its founder, Vikas Tandon, will remain as MD and would report to Arvind Sharma, chairman of Leo Burnett for the Indian Subcontinent, said Publicis in an official statement.
"All the 150-plus people (size of Indigo) are happy and rich, is all I can say," said Sharma.
The agency founded by the IIM-A alumnus Tandon in 2000 has an impressive client roster that includes brands such as Thomas Cook, HDFC Bank, Tata AIG General Insurance, Asian Paints and DSP Blackrock Mutual Funds. The maverick entrepreneur also runs Cashcow, India's first blog on Financial Services marketing.
In fact, even before the formal deal was sealed, Indigo had started helping the Publicis agency in making joint pitches and workshops, according to sources.
An elated Tandon shares, "This deal would surely help us leapfrog our growth. Digital world is very amorphous and we have built our business from early on with a very consulting approach."
Jarek Ziebinski, President of Leo Burnett Asia Pacific said in the press release, "Our growth strategy for Leo Burnett in India and Asia Pacific is based on two core pillars: digital and shopper-marketing" We want to make sure Leo Burnett has the right infrastructure in place to meet the needs of tomorrow. I also see Indigo Consulting developing beyond India, to become an important player within our network in Asia Pacific and globally."
This acquisition could well be an important step for Leo Burnett India's roadmap towards becoming a fully integrated communications company including the digital capability.
According to Sharma, "After this acquisition, every fourth employee of The Leo Burnett Group in India will be from the digital background."
Indigo provides website design and development, search engine optimisation, usability research and testing, and online marketing, on mobiles and in social media.
Cipla to launch combination anti-malarial drug in Africa, South-East Asian countries
Mumbai: Drug-maker Cipla is set to launch a fixed-dose combination of Artesunate (AS) and Mefloquine (MQ) medicines for the treatment of falciparum malaria.
The two-in-one combination targeting drug-resistant falciparum malaria has been developed by Cipla in collaboration with the Drugs for Neglected Diseases Initiative (DNDi).
The combination therapy simplifies a patient's treatment to a single dose of one or two tablets for three days — ensuring that the patient adheres to the treatment regime and the medicines are taken in correct proportions.
In 2010, about 3.3 billion people — almost half of the world's population — were at risk of malaria. And every year, this leads to about 216 million malaria cases, and an estimated 6,55 000 deaths, said the World Health Organisation (WHO), adding that people living in the poorest countries are the most vulnerable.
Cipla's announcement on the combination drug comes on the eve of World Malaria Day on April 25th.
The combination drug awaits WHO approval, Cipla Chairman and Managing Director, Dr Y.K. Hamied, told Business Line. Cipla will sell the drug in African and the South-East Asian markets, he said, adding that it has already been purchased in Malaysia. It has also got regulatory approvals in India and will be available at the retail chemist shops by mid-May, he added.
The drug will be bought by private and other purchasing agencies and governments through the tender-process of sourcing, where medicines are bought at “humanitarian” prices, Dr Hamied said.
Cipla, he pointed out, is a leading supplier of not just anti-retroviral (anti-AIDS) drugs, but anti-malarials, as well. Last year, Cipla supplied 50 million anti-malarial doses to Africa, he said. Also in the pipeline, in collaboration with the DNDi, are a couple of anti-retrovirals, he added. The drugs for the fixed-dose combination are being manufactured at Cipla's manufacturing unit in Patalganga.
Innovative partnership
The combination anti-malarial drug was developed through non-exclusive deals that DNDi had with Cipla and the Brazilian government-owned pharmaceutical company Farmanguinhos/Fiocruz, Dr Hamied said, adding that no royalty payments were involved.
Through an innovative partnership supported and facilitated by DNDi in 2008, Cipla entered into an agreement with the Brazilian pharmaceutical company to introduce the new fixed-dose combination in Asian and African countries.
Germany is India's first choice for business travel
New Delhi: Germany has emerged as the most preferred destination for India's corporate sector. According to a survey conducted by Synovate Business Consulting on the Indian outbound MICE (meetings, incentives, conferencing, exhibitions) market, which was commissioned by the German National Tourist Office (GNTO), India, 62% of the Indian corporate companies have chosen Germany as the most preferred destination for business-related travelling.
The report states that out of the mid-sized and large corporate companies who have organized MICE trips in Europe during 2010-11, 73% opted for Germany, followed by 52% for the United Kingdom. The most preferred city for business-related gatherings was Frankfurt with 54% companies voting for it, followed by Berlin at 51% and Munich at 44%.
The report highlights lower hotel rates and carrier options in Europe, robust infrastructure, reliable and professional partners, superior technology and good-quality service as key factors driving Germany's success as a business travel destination.
Indian outbound MICE market was estimated to be around USD 550-600 million in 2011. It grew strongly and resulted in an outbound trip volume of 6.2 million, with around 1.5-1.8 million passengers travelling outbound only for MICE. Industry verticals like Pharmaceutical, Cement, FMCG, IT and Financial services are the major contributors to the Indian outbound MICE sector.
The report states that out of the mid-sized and large corporate companies who have organized MICE trips in Europe during 2010-11, 73% opted for Germany, followed by 52% for the United Kingdom. The most preferred city for business-related gatherings was Frankfurt with 54% companies voting for it, followed by Berlin at 51% and Munich at 44%.
The report highlights lower hotel rates and carrier options in Europe, robust infrastructure, reliable and professional partners, superior technology and good-quality service as key factors driving Germany's success as a business travel destination.
Indian outbound MICE market was estimated to be around USD 550-600 million in 2011. It grew strongly and resulted in an outbound trip volume of 6.2 million, with around 1.5-1.8 million passengers travelling outbound only for MICE. Industry verticals like Pharmaceutical, Cement, FMCG, IT and Financial services are the major contributors to the Indian outbound MICE sector.
Norms eased for setting up power units in SEZs
New Delhi: In a boost to power firms with plans to set up units in Special Economic Zones (SEZ), the Government has exempted them from the positive net foreign exchange (NFE) obligation applicable to regular units in such enclaves.
The decision will help power companies such as Torrent Energy, Welspun Energy and AES.
Most power firms have been reluctant to set up plants in SEZs due to feasibility concerns arising from the positive NFE norm. The positive net NFE norm stipulates that foreign exchange earned from exports should exceed foreign exchange spent on imports.
According to the new guidelines, power plants can be set up by developers and co-developers in the processing area (where export units are present) as well as in the non-processing area with social infrastructure, including houses, schools and hospitals.
Power plants in the processing area can also avail themselves of fiscal benefits under the SEZ Act. These include benefits for initial setting up, such as duty-free import of raw materials, components and consumables for operation and maintenance of the power plant as well as generation of power. According to the norms, power plants in both the processing and non-processing areas will have no obligation to achieve positive NFE status.
However, if a power plant is set up as part of infrastructure facility in the non-processing area, it will be entitled to fiscal benefits only for the initial setting up and not for operation and maintenance.
The new norms also allow transfer of surplus power to the Domes Tariff Area (the area outside the SEZ) on payment of duty as applicable on import of such power.
These activities — generation, transmission and distribution of power — will be governed by the Electricity Act and Electricity Rules as well as the Power Ministry's resolutions.
Ambiguity cleared
Reacting to the new guidelines, Mr Ashok Khurana, Director General, Association of Power Producers, said, “This circular clears the ambiguity regarding the benefits available to power units in the processing zone.” Earlier, the Revenue Department was treating a power plant in the processing area just as any other export unit and not as an infrastructure facility/developer/co-developer. This meant its output was considered as ‘goods' attracting the positive NFE obligation.
Power companies had claimed that unlike manufacturing/IT/ITES units, it is not possible for them to achieve a positive NFE. Though the supply of power to units within the SEZ is treated as exports and counted towards calculation of positive NFE, achieving economies of scale is difficult by just supplying to SEZ units.
The only option is to sell the surplus electricity generated to units in the domestic tariff area (area outside the SEZs where all taxes and duties apply) by paying the applicable levies.
Power companies were not bothered about paying levies, but were concerned about the positive NFE condition. Even if all their supplies to the SEZ units are deemed as exports, it would have been difficult for them to meet the positive NFE norm due to the high capex.
The decision will help power companies such as Torrent Energy, Welspun Energy and AES.
Most power firms have been reluctant to set up plants in SEZs due to feasibility concerns arising from the positive NFE norm. The positive net NFE norm stipulates that foreign exchange earned from exports should exceed foreign exchange spent on imports.
According to the new guidelines, power plants can be set up by developers and co-developers in the processing area (where export units are present) as well as in the non-processing area with social infrastructure, including houses, schools and hospitals.
Power plants in the processing area can also avail themselves of fiscal benefits under the SEZ Act. These include benefits for initial setting up, such as duty-free import of raw materials, components and consumables for operation and maintenance of the power plant as well as generation of power. According to the norms, power plants in both the processing and non-processing areas will have no obligation to achieve positive NFE status.
However, if a power plant is set up as part of infrastructure facility in the non-processing area, it will be entitled to fiscal benefits only for the initial setting up and not for operation and maintenance.
The new norms also allow transfer of surplus power to the Domes Tariff Area (the area outside the SEZ) on payment of duty as applicable on import of such power.
These activities — generation, transmission and distribution of power — will be governed by the Electricity Act and Electricity Rules as well as the Power Ministry's resolutions.
Ambiguity cleared
Reacting to the new guidelines, Mr Ashok Khurana, Director General, Association of Power Producers, said, “This circular clears the ambiguity regarding the benefits available to power units in the processing zone.” Earlier, the Revenue Department was treating a power plant in the processing area just as any other export unit and not as an infrastructure facility/developer/co-developer. This meant its output was considered as ‘goods' attracting the positive NFE obligation.
Power companies had claimed that unlike manufacturing/IT/ITES units, it is not possible for them to achieve a positive NFE. Though the supply of power to units within the SEZ is treated as exports and counted towards calculation of positive NFE, achieving economies of scale is difficult by just supplying to SEZ units.
The only option is to sell the surplus electricity generated to units in the domestic tariff area (area outside the SEZs where all taxes and duties apply) by paying the applicable levies.
Power companies were not bothered about paying levies, but were concerned about the positive NFE condition. Even if all their supplies to the SEZ units are deemed as exports, it would have been difficult for them to meet the positive NFE norm due to the high capex.
New Zealand keen on free trade pact with India
Kolkata: Mr Richard White, New Zealand Trade Commissioner to India, has said his country is expecting to conclude the Free Trade Agreement (FTA) with India by next year.
FTA is a treaty between two or more countries to create a free trade zone. According to Mr White, New Zealand was not only “determined to conclude a successful FTA in the next year or so”, but also develop a collaborative and coordinated strategy for political, economic and trade ties between the two countries.
Mr White was here to address an interactive session organised by the Bengal National Chamber of Commerce and Industry.
The bilateral trade between India and New Zealand, which stood at $1 billion in 2011-12, is expected to double by 2015, Mr White said.
In view of India's growing demand for information and communication technology (ICT) services, many ICT companies have been eyeing to enter the Indian marketplace, he said. A number of New Zealand-based companies were also planning to partner with major Indian firms like CMC Ltd and HCL, he added.
FTA is a treaty between two or more countries to create a free trade zone. According to Mr White, New Zealand was not only “determined to conclude a successful FTA in the next year or so”, but also develop a collaborative and coordinated strategy for political, economic and trade ties between the two countries.
Mr White was here to address an interactive session organised by the Bengal National Chamber of Commerce and Industry.
The bilateral trade between India and New Zealand, which stood at $1 billion in 2011-12, is expected to double by 2015, Mr White said.
In view of India's growing demand for information and communication technology (ICT) services, many ICT companies have been eyeing to enter the Indian marketplace, he said. A number of New Zealand-based companies were also planning to partner with major Indian firms like CMC Ltd and HCL, he added.
LinkedIn: India becomes second largest market
Social networking site LinkedIn's Indian user base has grown 300% in the three years it has had a marketing presence in India. The firm, today, has about 14 million users from India, which has quickly become its second-largest market globally, bigger than China and only behind the United States, according to Jeff Weiner, LinkedIn's chief executive.
Those 14 million Indian users join another 135 million-odd who are tapping into some 2 million companies and many more individuals to seek out jobs (or be sought out for one), organise conferences and network with a broad spectrum of people. On a recent trip to India to keynote his firm's B2B conference in Mumbai, Weiner-the 42-year-old former executive-in-residence, with two venture capital firms in Silicon Valley-said the firm's mobile business accounts for a fifth of its user base today, compared to 8% in January 2011.
"Mobile is our fastest-growing business," says Weiner. "LinkedIn connects talent with opportunity at a massive scale. Ultimately, our vision is to create an economic opportunity for every professional," he adds. The stage may now be set for monetisation. In February, on an earnings call after announcing the company's fourth-quarter results of 2011, Weiner had said that now that LinkedIn had got the product and user experience right, the time was ripe to test ads in the mobile environment.
India's booming mobile user base-around 700-plus million and growing rapidly-is a clear opportunity for LinkedIn. More importantly, according to estimates of GSMA, a global mobile services lobby, India is expected to become the second-largest mobile broadband market globally, with 367 million connections in four years, compared to 20-30 million today.
"The Indian market has shown a real propensity for social connectivity," says Weiner. "So, in that regard, it is not surprising." He adds that LinkedIn has been able to reach critical mass with English - unlike other markets such as China, where local language is the key to building a successful Internet business.
That may explain why India is a larger market for LinkedIn than China, where it has barely a million members. LinkedIn has also been trying to promote its B2B business. Homegrown firms such as Wipro and the Indian arm of multinationals such as Cisco, SAP and Huawei use LinkedIn as a platform to connect with employees, vendors and business partners. Weiner will be keen to press home this advantage as he seeks a stronger foothold in this market.
Unlike many other software firms that hire in the hundreds, if not thousands, LinkedIn has been flying below the radar in India. It barely has a 100 people across its offices in Mumbai, Delhi and its R&D unit in Bangalore. This number will only rise incrementally, rather than in the dozens. The strategy is not to focus on R&D (like many of its larger rivals), but on India as a market.
For the moment, the US accounts for two-thirds of LinkedIn's business and "international", including fast-growing businesses in India, account for the rest. To drive its international business, LinkedIn wants to not just increase the number of users, but also deepen its relationships with them.
For example, this February, it launched India-specific pricing for some of its recruitment products such as LinkedIn Recruiter, Jobs Network and Talent Direct. LinkedIn wants to mine the mountain of data it generates to improve the quality of its recommendations (who to connect to on the site), as well as convert its recruiting business-the firm's mainstay in India-into a more dynamic one.
Suzuki to construct new motorcycle plant in Haryana
Mumbai: Suzuki Motorcycle India (SMIPL), a subsidiary of Suzuki Motor Corporation, Japan has decided to build a new two wheeler plant at Rohtak in state of Haryana, India.
The Haryana chief minister Bhupinder Singh Hooda laid the foundation stone at the planned site.
In 2004, Suzuki Motor Corporation, Japan (SMC) had set up SMIPL for manufacturing and sales of two wheeler. SMIPL started producing two wheelers from 2006 at Gurgaon plant in Haryana state.
Two wheeler market in India has been expanding and crossed 13.4 million units in the last financial year 2011-2012.
The market is expected to further increase and SMIPL has taken an approval from Haryana Government to build an additional two wheeler and components plant by using 4 lakh land that is a part of land allotted to Maruti Suzuki India Limited (MSIL), subsidiary of SMC in India.
Planned production capacity of this plant is 5 lakh units, and the plant is expected to be completed in the year 2014. Further expansion of the plant will be planned according to the expansion of the two wheeler market in India.
In SMIPL, the product portfolio includes 2 models of scooter, 2 models of motorcycle, being produced in Gurgaon Plant and production stood at 3.5 lakh units in 2011, a 122% increase over the previous year.
HDFC Bank partners Wells Fargo for US-India remittance service
Mumbai: HDFC Bank on Monday said it had partnered Wells Fargo for remittance services between America and India. This would allow Indians residing there to remit money to their beneficiaries’ HDFC Bank savings accounts in India. Wells Fargo has 6,000 branches in the US, while HDFC has 2,544 branches in India.
“While we are a major player in the Gulf-India remittance market, this alliance will help us consolidate in the US-India sector, which has been growing exponentially. Given our reach and the web-based nature of the service, this will allow people to send money back home in one of the safest and fastest possible ways,” said Harish Engineer, executive director at HDFC Bank.
Wells Fargo has a similar partnership with ICICI Bank in India.
TCS beats $10-bn revenue mark in FY12
Mumbai: For India’s largest IT services firm Tata Consultancy Services (TCS), the fourth-quarter and annual results for financial year 2012 were about setting milestones. TCS became the first IT services company in the country to cross the $10-billion mark (according to IFRS) in revenues for the year ended March 31. By reporting a 22.6 per cent increase in its net profit on a year-on-year basis for the fourth quarter ended March, TCS gave an upbeat outlook and reiterated it was better placed to manage growth compared to its peers, especially Infosys.The better than expected numbers also put to rest some of the concerns over the demand environment for IT services.
“We have good momentum. We have a good pipeline and the traction in business is positive. We do see a good year ahead and we are sure growth for the next fiscal will be even across quarters,” said CEO & MD N Chandrasekaran. Though the company does not give any guidance, Chandrasekaran said it would do better than the Nasscom prediction of growth for the industry at 11-14 per cent.
TCS saw its revenues rise to Rs 13,259.30 crore in the quarter under review with y-o-y growth of 30.5 per cent, backed by ramping up of existing clients and steady growth of its business across major geographies.
The company’s growth during the quarter was also driven by a volume growth of 3.3 per cent. In US dollar terms, the company's revenue for the full year was $10.17 billion.
In the results announced so far by tier-1 IT services firms, TCS sounded far more bullish than Infosys and HCL Technologies on the demand environment. While both Infosys and HCL indicated discretionary spends were going to be an area of concern and already there were some project ramp-downs, the TCS management said discretionary spends had been easing since Feburary.
On a sequential quarterly basis, the company’s net profit went up marginally by 1.6 per cent and revenues grew 0.4 per cent.
"The TCS results were in line with estimates on the revenue and profit fronts. The 3.3 per cent volume growth was encouraging in a tough macro environment,” said Dipen Shah, head of fundamental research, Kotak Securities.
Margins for the quarter decreased 155 basis points (bps) to 27.7 per cent. This was largely due to the negative 71-bp impact of forex loss (Rs 125 crore) and an 11-bp fall due to offshore moves. During the quarter, the company's productivity was up 47 bps.
Rs 10,000-cr incentive package for electronics manufacture on the anvil
New Delhi: The Government is formulating a special incentive package to encourage local manufacturing of electronic goods including mobile handsets, semiconductor wafer fab, consumer electronics and telecom network equipment.
The package includes reimbursement of indirect taxes and a subsidy of 20 per cent on capital expenditure made by high-tech manufacturers in SEZ units. Investments made in non-SEZ units could get a subsidy of 25 per cent. The Ministry of Finance has agreed to the proposal with a ceiling of Rs 10,000 crore during the 12th Plan.
The subsidy element may be linked to the project outcome in a bid to ensure that companies invest in cutting edge technologies that's marketable.
For example, in the case of semiconductor wafer fab, 75 per cent of the overall subsidy could be linked to production milestones.
The incentive package was discussed on Monday at a meeting between the Department of Electronics and IT (DEITy) and the Planning Commission. A senior official told Business Line, “The Planning Commission is in favour of such a policy. It will take some more meetings to finalise the draft.”
According to top Government sources, the Department of Commerce has also concurred with the proposal, confirming compatibility to India's commitment to various international bodies including the WTO on subsidies.
In order to raise the initial corpus for the project, the DEITy has proposed to levy a cess on all electronic products sold in the country. The revenue earned from the cess will be put into the National Electronics Mission fund. According to estimates made by DEITy, the Government will end up being a net revenue earner by 2020.
The department has presented three scenarios with different production targets. If the production reaches $400 billion by 2020, then the Government subsidy will amount to $32.85 billion while the revenue accruals will be $58.52 billion according to the projections made by DEITy.
This is part of Government's efforts to boost manufacturing in the country. Over the past few months, the Government has taken a series of steps including formulating a National Policy on Electronics. The policy had made it mandatory for Government agencies to give preferential access to electronic products made in the country.
The package includes reimbursement of indirect taxes and a subsidy of 20 per cent on capital expenditure made by high-tech manufacturers in SEZ units. Investments made in non-SEZ units could get a subsidy of 25 per cent. The Ministry of Finance has agreed to the proposal with a ceiling of Rs 10,000 crore during the 12th Plan.
The subsidy element may be linked to the project outcome in a bid to ensure that companies invest in cutting edge technologies that's marketable.
For example, in the case of semiconductor wafer fab, 75 per cent of the overall subsidy could be linked to production milestones.
The incentive package was discussed on Monday at a meeting between the Department of Electronics and IT (DEITy) and the Planning Commission. A senior official told Business Line, “The Planning Commission is in favour of such a policy. It will take some more meetings to finalise the draft.”
According to top Government sources, the Department of Commerce has also concurred with the proposal, confirming compatibility to India's commitment to various international bodies including the WTO on subsidies.
In order to raise the initial corpus for the project, the DEITy has proposed to levy a cess on all electronic products sold in the country. The revenue earned from the cess will be put into the National Electronics Mission fund. According to estimates made by DEITy, the Government will end up being a net revenue earner by 2020.
The department has presented three scenarios with different production targets. If the production reaches $400 billion by 2020, then the Government subsidy will amount to $32.85 billion while the revenue accruals will be $58.52 billion according to the projections made by DEITy.
This is part of Government's efforts to boost manufacturing in the country. Over the past few months, the Government has taken a series of steps including formulating a National Policy on Electronics. The policy had made it mandatory for Government agencies to give preferential access to electronic products made in the country.
Tesco's e-tail rollout has India as its innovation hub
Mumbai: Bangalore research centre at work to marry mobile technology to offerings in diverse apps
Imagine a scenario where you are browsing through a recipe are also able to buy all the ingredients for the dish at a tab of your figure.
This is what Tesco allows its buyers to do in the UK and elsewhere with help from its India technology centre. The application (app) for the iPad has been developed by the UK retailer’s India captive unit based out of Bangalore.
Tesco Hindustan Service Centre, is helping the world’s third largest and Britian’s leading retailer in going global with its e-commerce roll-out. After successfully running its e-commerce site in the UK, the retailer is now planning to take its online stores to other regions. The first successful roll out of its online grocery shopping services outside the UK happened in the Czech Republic.
The technology team from Tesco HSC based out of Bangalore is a part of Tesco’s online foray. The team has developed the online platform that supports 25 countries and allows shoppers to browse the site in multiple languages.
“The user response has been excellent. It is one of the five most visited retail websites and on average processes 500,000 orders a week across its online businesses. With the demographic of the buyer changing, we now need to fulfil the customer expectation and reach out to various touch points,” said Sandeep Dhar, CEO of Tesco HSC.
For Tesco, its online and mobile foray is crucial as it increases revenue via online services. According to the 2010-11 annual report, online sales grew 15 per cent. More, 12 per cent of customer traffic to the tesco.com site is coming via the mobile-based grocery app.
Last year, the Bangalore-based team produced an online application called Click & Collect, that allows customers to collect rather than wait for the delivery.
“We found customers wanted flexibility even when they shop online. Based on customer feedback, we launched our Click & Collect services. Customers can browse and select their items and place the order online. The order is put together and kept ready for collection by the customer at a defined store location; the customer can simply drive in and collect the shopping and be on their way,” explains Dhar.
While this might sound simple, the Bangalore-based team was responsible for every detail of the Click & Collect platform. Some key challenges include a single core code base to support multiple (25) countries, ability for the platform to serve more than one country from a single deployed instance, allow customers to browse the site in multiple languages, allow for the site to be hosted across multiple data centres, be flexible enough to support variations in business processes, and product data and legal/compliance requirements of each country.
“We have come up with a unique architect for the online platform. It works just like an application store. You can use the App store to download an application to enhance the iPhone usage. We have used a similar concept but on the server side and we call it ‘internal AppStore’. We have created an internal suite of applications, which can be part of the platform, depending on the country it is being rolled out in and the customer experience that Tesco’s local arm in that region wants to give customers,” said Dhar.
By bringing in a plug-and-play format to the server and application side, Dhar and his team do not need to reprogramme the applications each time, thus reducing the time of deployment.
Tesco HSC’s overall headcount is 6,300. Of this, a team of 500 employees work on the online solutions and mobile platform. About 75 per cent of Tesco’s IT core sits in Tesco HSC that includes- infrastructure management, application support and development of architecture. The HSC team support 14 operations in countries — the UK, Ireland, America, Korea, China, Japan, Malaysia, Thailand, Turkey, Poland, Hungary, Slovakia, Czech Republic and India.
Mobile is another big focus for the Bangalore team. They have also developed applications for both Apple’s AppStore and for Android. Its mobile shopping application has seen half a million downloads so far.
One application the team is working on is a voice-based search app.
“Instead of you typing the product’s name and searching for it on Tesco’s website, buyers will be able to just speak out the product and get the various options. For instance, one can just say milk and the application will list out the variety of milk brands to choose from. We are still working on the voice accuracy. We also intend to roll this cout in at least eight-nine languages,” said Dhar.
Imagine a scenario where you are browsing through a recipe are also able to buy all the ingredients for the dish at a tab of your figure.
This is what Tesco allows its buyers to do in the UK and elsewhere with help from its India technology centre. The application (app) for the iPad has been developed by the UK retailer’s India captive unit based out of Bangalore.
Tesco Hindustan Service Centre, is helping the world’s third largest and Britian’s leading retailer in going global with its e-commerce roll-out. After successfully running its e-commerce site in the UK, the retailer is now planning to take its online stores to other regions. The first successful roll out of its online grocery shopping services outside the UK happened in the Czech Republic.
The technology team from Tesco HSC based out of Bangalore is a part of Tesco’s online foray. The team has developed the online platform that supports 25 countries and allows shoppers to browse the site in multiple languages.
“The user response has been excellent. It is one of the five most visited retail websites and on average processes 500,000 orders a week across its online businesses. With the demographic of the buyer changing, we now need to fulfil the customer expectation and reach out to various touch points,” said Sandeep Dhar, CEO of Tesco HSC.
For Tesco, its online and mobile foray is crucial as it increases revenue via online services. According to the 2010-11 annual report, online sales grew 15 per cent. More, 12 per cent of customer traffic to the tesco.com site is coming via the mobile-based grocery app.
Last year, the Bangalore-based team produced an online application called Click & Collect, that allows customers to collect rather than wait for the delivery.
“We found customers wanted flexibility even when they shop online. Based on customer feedback, we launched our Click & Collect services. Customers can browse and select their items and place the order online. The order is put together and kept ready for collection by the customer at a defined store location; the customer can simply drive in and collect the shopping and be on their way,” explains Dhar.
While this might sound simple, the Bangalore-based team was responsible for every detail of the Click & Collect platform. Some key challenges include a single core code base to support multiple (25) countries, ability for the platform to serve more than one country from a single deployed instance, allow customers to browse the site in multiple languages, allow for the site to be hosted across multiple data centres, be flexible enough to support variations in business processes, and product data and legal/compliance requirements of each country.
“We have come up with a unique architect for the online platform. It works just like an application store. You can use the App store to download an application to enhance the iPhone usage. We have used a similar concept but on the server side and we call it ‘internal AppStore’. We have created an internal suite of applications, which can be part of the platform, depending on the country it is being rolled out in and the customer experience that Tesco’s local arm in that region wants to give customers,” said Dhar.
By bringing in a plug-and-play format to the server and application side, Dhar and his team do not need to reprogramme the applications each time, thus reducing the time of deployment.
Tesco HSC’s overall headcount is 6,300. Of this, a team of 500 employees work on the online solutions and mobile platform. About 75 per cent of Tesco’s IT core sits in Tesco HSC that includes- infrastructure management, application support and development of architecture. The HSC team support 14 operations in countries — the UK, Ireland, America, Korea, China, Japan, Malaysia, Thailand, Turkey, Poland, Hungary, Slovakia, Czech Republic and India.
Mobile is another big focus for the Bangalore team. They have also developed applications for both Apple’s AppStore and for Android. Its mobile shopping application has seen half a million downloads so far.
One application the team is working on is a voice-based search app.
“Instead of you typing the product’s name and searching for it on Tesco’s website, buyers will be able to just speak out the product and get the various options. For instance, one can just say milk and the application will list out the variety of milk brands to choose from. We are still working on the voice accuracy. We also intend to roll this cout in at least eight-nine languages,” said Dhar.
Hospitality sector upbeat on domestic tourist flow
Mumbai: Notwithstanding the increase in rates of tour packages and high air ticket prices, hospitality players are upbeat about the summer tourist season.
Occupancy levels have been stable and demand from domestic travellers has seen a steady increase, say industry players.
“The hotel industry in India is on a growth trajectory. We feel that demand in the market has kept pace with incoming supply. Occupancy levels pan-industry, including Taj Hotels, are either at the same levels as last year owing to increase in supply or have improved in certain key destinations,” said Ms Deepa Harris, Senior Vice-President, Sales and Marketing, Taj Group of Hotels.
According to Crisil Research, occupancy levels are expected to scale back to the pre-crisis levels and are expected to touch 65 per cent by 2014. A steady rise in domestic tourist spending has also brought cheer to the industry with a 13.7 per cent compound annual growth rate (CAGR) from 2010 to 2012, according to a report by World Travel and Tourism Council.
The country had 740 million domestic travellers across segments in 2011 and the figure is set to grow. Younger demographics of the travellers and their changing preferences have opened many opportunities for the hospitality sector. For example, recently Vivanta by Taj opened its new hotel at Bekal in Kerala and Srinagar, which are some of the emerging destinations for the Indian holiday goers.
“Shorter duration of holidays is a trend observed during summer travel. However, occupancy levels in hill stations and popular summer destinations such as Goa are 100 per cent for the season,” said Mr Manmeet Ahluwalia of Expedia – India, travel portal.
Occupancy levels
Hotel Leela has seen steady occupancy level at its hotels in Goa, Udaipur and Kovalam. The group is upbeat about its recently renovated Goa property. “This summer, we are looking to boost our revenues from the Goa property by 25 per cent over last year,” said Mr Sanjoy Pasricha, Vice-President, Sales and Marketing, The Leela Palaces, Hotels and Resorts. Yatra.com also expects tourist traffic at popular summer destinations to grow. “The economy is positive and the domestic market is very receptive,” said Mr Pratik Mazumder, Head Marketing, Strategic Alliance at Yatra.com.
On inbound travel segment, hospitality industry experts say that as compared to the situation in Europe and US, economic activity in India has not decreased drastically. This has sustained international business travel into the county, albeit with compromises on hotel spends. “The western economies are yet to see recovery. With a partial positive mood in the US economy and the concurrent pressure on European economies, the travel and tourism sector is seeing reduced spends,” Mr Dipak Haksar, COO, ITC Hotels.
Occupancy levels have been stable and demand from domestic travellers has seen a steady increase, say industry players.
“The hotel industry in India is on a growth trajectory. We feel that demand in the market has kept pace with incoming supply. Occupancy levels pan-industry, including Taj Hotels, are either at the same levels as last year owing to increase in supply or have improved in certain key destinations,” said Ms Deepa Harris, Senior Vice-President, Sales and Marketing, Taj Group of Hotels.
According to Crisil Research, occupancy levels are expected to scale back to the pre-crisis levels and are expected to touch 65 per cent by 2014. A steady rise in domestic tourist spending has also brought cheer to the industry with a 13.7 per cent compound annual growth rate (CAGR) from 2010 to 2012, according to a report by World Travel and Tourism Council.
The country had 740 million domestic travellers across segments in 2011 and the figure is set to grow. Younger demographics of the travellers and their changing preferences have opened many opportunities for the hospitality sector. For example, recently Vivanta by Taj opened its new hotel at Bekal in Kerala and Srinagar, which are some of the emerging destinations for the Indian holiday goers.
“Shorter duration of holidays is a trend observed during summer travel. However, occupancy levels in hill stations and popular summer destinations such as Goa are 100 per cent for the season,” said Mr Manmeet Ahluwalia of Expedia – India, travel portal.
Occupancy levels
Hotel Leela has seen steady occupancy level at its hotels in Goa, Udaipur and Kovalam. The group is upbeat about its recently renovated Goa property. “This summer, we are looking to boost our revenues from the Goa property by 25 per cent over last year,” said Mr Sanjoy Pasricha, Vice-President, Sales and Marketing, The Leela Palaces, Hotels and Resorts. Yatra.com also expects tourist traffic at popular summer destinations to grow. “The economy is positive and the domestic market is very receptive,” said Mr Pratik Mazumder, Head Marketing, Strategic Alliance at Yatra.com.
On inbound travel segment, hospitality industry experts say that as compared to the situation in Europe and US, economic activity in India has not decreased drastically. This has sustained international business travel into the county, albeit with compromises on hotel spends. “The western economies are yet to see recovery. With a partial positive mood in the US economy and the concurrent pressure on European economies, the travel and tourism sector is seeing reduced spends,” Mr Dipak Haksar, COO, ITC Hotels.
ISRO plans biggest ever spacecraft by 2014
Bangalore: ISRO plans to launch its biggest ever spacecraft, the 5,000-kg GSAT-11, by 2014.
The advanced communication satellite, GSAT-11, will be double the capacity and size of the present buses, and will be built over the next two years.
GSAT-11 will have 32 transponders in the Ka and Ku bands, ISRO's just-released annual report for 2011-12, has revealed.
ISRO is banking on this large, one-shot boost to its flagging capacity. Only half of its present capacity — or 80 transponders — comes from its fleet of INSAT /GSAT communications satellites. The rest are leased on foreign satellites.
The present capacity of 175 transponders is around half of its requirement. It has been looking around to fill it. To date, GSAT-8 is the biggest national craft to be built. The 3,600-kg piece was launched by a European Ariane rocket last May.
Formal approval
Mr S. Satish, ISRO's spokesman, said the spacecraft proposal was due for formal approval. He said the 5k advanced craft would go up on a ‘procured' or outside launch. ISRO has traditionally used European Ariane launchers to put its larger satellites into orbit.
A normal 2-3k satellite costs around Rs 200 crore to assemble; and around the same for launch. For GSAT-11 and its launch, it could be an estimated Rs 700-800 crore.
“Subsystem level preliminary design review has been completed. The qualification programme for all new elements onboard GSAT-11 has been initiated,” the report says.
ISRO's medium-lift rocket under development, the GSLV, can launch up to 2,000-kg satellites into the middle-earth orbits that are suited for communication satellites — 36,000 km up above the earth.
The rocket is being perfected and has yet to be put fully in service. The GSLV MkIII, meant to lift heavier satellites of 4-6 tonne, looks far from GSAT-11's schedule.
Upcoming satellites would be a mix of 1k, 2k and 3k satellites, so that smaller ones like the 1,400-kg GSAT-12 can be launched quickly on the PSLV, he said.
The advanced communication satellite, GSAT-11, will be double the capacity and size of the present buses, and will be built over the next two years.
GSAT-11 will have 32 transponders in the Ka and Ku bands, ISRO's just-released annual report for 2011-12, has revealed.
ISRO is banking on this large, one-shot boost to its flagging capacity. Only half of its present capacity — or 80 transponders — comes from its fleet of INSAT /GSAT communications satellites. The rest are leased on foreign satellites.
The present capacity of 175 transponders is around half of its requirement. It has been looking around to fill it. To date, GSAT-8 is the biggest national craft to be built. The 3,600-kg piece was launched by a European Ariane rocket last May.
Formal approval
Mr S. Satish, ISRO's spokesman, said the spacecraft proposal was due for formal approval. He said the 5k advanced craft would go up on a ‘procured' or outside launch. ISRO has traditionally used European Ariane launchers to put its larger satellites into orbit.
A normal 2-3k satellite costs around Rs 200 crore to assemble; and around the same for launch. For GSAT-11 and its launch, it could be an estimated Rs 700-800 crore.
“Subsystem level preliminary design review has been completed. The qualification programme for all new elements onboard GSAT-11 has been initiated,” the report says.
ISRO's medium-lift rocket under development, the GSLV, can launch up to 2,000-kg satellites into the middle-earth orbits that are suited for communication satellites — 36,000 km up above the earth.
The rocket is being perfected and has yet to be put fully in service. The GSLV MkIII, meant to lift heavier satellites of 4-6 tonne, looks far from GSAT-11's schedule.
Upcoming satellites would be a mix of 1k, 2k and 3k satellites, so that smaller ones like the 1,400-kg GSAT-12 can be launched quickly on the PSLV, he said.
Shantha Bio's project among 22 FDI proposals cleared
New Delhi: A Rs 514-crore proposal by Shantha Biotechnics for setting up a brownfield bio-genetics project was among the 22 foreign direct investment (FDI) proposals worth Rs 586.13 crore cleared on Friday by the Foreign Investment Promotion Board. Among other proposals which got approval for FDI infusion include Bhushan Steel's rights issue worth Rs 8.17 crore and Mahindra and Mahindra's Rs 25.99-crore proposal to set up a joint venture to develop, manufacture and provide service support for radar systems and various kind of defence electronics systems. FIPB also approved Ashok Leyland Defence Systems' proposal to undertake defence related activities. The proposal will see a FDI infusion of Rs 10 crore. Additionally, publisher Springer Editorial Service is looking to increase its foreign equity up to 100 per cent to carry on the business of publishing services. It is looking at an equity infusion of Rs 12.87 crore. At least 18 proposals were deferred on various grounds, while five proposals have been rejected.
Indonesia looks to Indian investments beyond natural resources
Chennai: Indonesia is keen on attracting Indian investments in manufacturing and value added processing than just in exploitation of its natural resources, according to Mr Andi M. Ghalib, the Indonesian Ambassador to India.
The trade between the two countries had reached about $20 billion in 2011-12 against about $13 billion two years earlier.
This growth has encouraged Indonesia to hike the targeted growth in bilateral trade to $45 billion against $25 billion previously. The target had been revised last month, he said.
The Indonesian national carrier, Garuda, is set to launch direct flights to India from June.
The Indonesian embassy here has suggested that the carrier link the four major metropolitan cities – Delhi, Kolkata, Mumbai and Chennai.
Indonesia's exports to India was $11 billion primarily based on natural resources such as coal, crude palm oil, wood, rubber, gold and copper.
Value addition
Indonesia had hiked the levy on coal mined by foreign companies there to benchmark Indonesian coal price to international market prices and to promote investments in value addition and manufacturing sector, he said.
According to Mr Leonard F. Hutabarat, Counsellor, Embassy of Indonesia, when companies invest in value addition the levy is lower.
For instance, taxes for a company sourcing crude palm oil will be halved if it sets up a refinery in Indonesia. The same applies to other resources like coal.
This follows demands by local governments in Indonesia that saw no economic benefit in foreign companies exploiting their natural resources.
Investments in factories in Indonesia will generate jobs and support the local economy, he said.
Trade delegation
Next month the Embassy has organised a 40-50 member trade delegation of potential Indian investors to Indonesia to showcase the business opportunities there. Representatives from agriculture, plantation, textiles, telecom, education and IT sectors were on the delegation, he said.
India and Indonesia, the second and third largest economies in Asia after China, have signed 33 agreements to promote trade.
They are also partners through the free trade agreement signed by the Association of South East Asian Nations.
This is the ideal time to promote investments between the two countries, the Ambassador said.
The trade between the two countries had reached about $20 billion in 2011-12 against about $13 billion two years earlier.
This growth has encouraged Indonesia to hike the targeted growth in bilateral trade to $45 billion against $25 billion previously. The target had been revised last month, he said.
The Indonesian national carrier, Garuda, is set to launch direct flights to India from June.
The Indonesian embassy here has suggested that the carrier link the four major metropolitan cities – Delhi, Kolkata, Mumbai and Chennai.
Indonesia's exports to India was $11 billion primarily based on natural resources such as coal, crude palm oil, wood, rubber, gold and copper.
Value addition
Indonesia had hiked the levy on coal mined by foreign companies there to benchmark Indonesian coal price to international market prices and to promote investments in value addition and manufacturing sector, he said.
According to Mr Leonard F. Hutabarat, Counsellor, Embassy of Indonesia, when companies invest in value addition the levy is lower.
For instance, taxes for a company sourcing crude palm oil will be halved if it sets up a refinery in Indonesia. The same applies to other resources like coal.
This follows demands by local governments in Indonesia that saw no economic benefit in foreign companies exploiting their natural resources.
Investments in factories in Indonesia will generate jobs and support the local economy, he said.
Trade delegation
Next month the Embassy has organised a 40-50 member trade delegation of potential Indian investors to Indonesia to showcase the business opportunities there. Representatives from agriculture, plantation, textiles, telecom, education and IT sectors were on the delegation, he said.
India and Indonesia, the second and third largest economies in Asia after China, have signed 33 agreements to promote trade.
They are also partners through the free trade agreement signed by the Association of South East Asian Nations.
This is the ideal time to promote investments between the two countries, the Ambassador said.
Saturday, April 21, 2012
PandG to build largest Indian plant in Hyderabad
Hyderabad/ Mumbai: Procter & Gamble, the world's largest consumer goods company, will build its largest manufacturing plant in the Indian sub-continent in Hyderabad by investing 345 crore.
The plant, to be spread across 170 acres at Mahbubnagar district, will make products across categories such as laundry, personal and baby care, a person, who is the know said on condition of anonymity.
P&G India's associate director, product supply, Madhav Rao confirmed that the maker of Tide detergent and Head & Shoulder shampoo will build a manufacturing facility in Hyderabad. The plant will start commercial production in two years.
Andhra Pradesh industries secretary TS Appa Rao said P&G has awarded the construction contract to L&T. "They have asked for a tailor made package of tax breaks and the state investment promotion board is considering it," Rao said.
The $82.6-billion (sales in FY11) US giant had considered Chennai too as a possible site for its plant. Building the plant in Hyderabad will make it eligible for a 100% stamp duty reimbursement and fixed power allocation as per Andhra Pradesh's newly-revised industrial policy. The company has also asked for a 75% reimbursement on VAT for five years.
The move is in line with the Cincinatti-based firm's global mandate to set up over 20 production centres and acquire one billion new consumers in emerging markets by 2015. P&G is looking to catch up with archrival Unilever in India and most emerging markets. Making more products locally and reducing imports will help it speed up product launches and cut costs.
It currently has five plants and over nine contract manufacturing sites in India.
Last year, P&G approved an investment plan of over 900 crore in its unlisted arm Procter & Gamble Home Products. Most of this money will go into powering P&G's 'Project 2-3-4,' which is aimed at doubling the number of Indians who use its products, trebling per capita spending by Indians on its products and quadrupling net sales of its India operations by 2015.
Anand Mour, senior analyst at brokerage firm Ambit Capital, said P&G will need to spruce up production to quadruple its sales. "Making products locally will help P&G in economies of scale to localise and price their products aggressively," he said.
P&G is also expanding its existing multi-product manufacturing facility in Bhopal. It has doubled its distribution reach over the past couple of years and now has a direct reach of 1.3 million outlets, against HUL's direct reach of 2 million outlets.
At present, India is one of the smallest markets for P&G with just $1-billion sales across three subsidiaries -Procter & Gamble Health & Hygiene, Gillette India and Procter & Gamble Home Products.
Intel enters smartphone market in India with Xolo
New Delhi: At last, there is 'Intel Inside' in a smartphone. Intel entered the smartphone market on Thursday, launching Xolo X900 in partnership with India's Lava Mobiles. The company, dubbed 'chipzill', makes processors that power over 80% computers in the world.
Xolo X900 is the world's first Android phone powered by an Intel processor and represents the chip manufacturer's first attempt to take on ARM Holdings, a British firm that makes technology, powering virtually all smartphone and tablets in the world.
The launch of Xolo X900 is a significant moment for both Lava and Intel. While Lava, which is better known for its budget phones, is trying to enter the premium segment, for Intel it's the beginning of the company's new future where traditional computers may not matter much. "The boundaries of personal computing are expanding. Xolo X900 showcases rich capabilities of Intel computing and highlights possibilities of what's still to come," said Mike Bell, Intel's corporate V-P.
The Xolo X900 is based on Intel's reference design and features Atom processor (Z2460) running at 1.6Ghz. It will be available in the market from April 23 at Rs 22,000.
"We know that we can't be big overnight but we believe that in Xolo X900 we have a smartphone that is faster compared to the competition due to Intel processor," said Vishal Sehgal, director of Lava International. Lower-priced Xolo phones would come in future and Xolo owners will get premium support, including onsite warranty, a first for phones in India, Sehgal added.
Despite smartphones and tablets becoming a force to reckon with, so far Intel has failed to get a foothold in the market. Patrick Moorhead, who recently started his consulting firm Moor Insights & Strategy after decade-long stint with AMD, Intel's lead rival, said the 'chipzilla' has a good chance of success.
"I believe Intel can attain at least 10-20% unit share in smartphones and 50% unit share in tablets costing $299 and above by 2014," said Moorhead. "Medfield (the processor that powers Xolo X900) is very competitive on delivering a good experience at low power and will get even more competitive as Intel moves to 22nm and new architectures. At 14nm, the company will be aforce to reckon with."
Traditionally, Intel has held a massive advantage in manufacturing of silicon chip and has used it to the good effect in traditional computer market. This is something Prashanth Adiraju, director for new platforms at Intel (South Asia) highlighted. "Unlike competition (read ARM) we design, optimize and manufacture the complete chip. This is our competitive advantage," he said.
The world of technology is in state of flux. Last year, Microsoft had announced that Windows 8 would run on ARM processors, ending the decades-old Microsoft-Intel partnership, often dubbed Wintel by analysts. On the same day, Intel announced it would partner with Google to bring Android to X86 platform, something that set in motion the process which led to the launch of Xolo X900
Strides Arcolab unit gets USFDA nod for cancer injection
Bangalore: Onco Therapies, a subsidiary of Strides Arcolab, has received US Food and Drug Administration (FDA) approvals for anti-cancer Cisplatin injection.
The company's shares on the BSE rose slightly over 3 per cent to close at Rs 653 a share following the announcement.
Cisplatin is a chemotherapy drug and is used to treat various types of cancers, including sarcomas, some carcinomas (example small cell lung cancer, and ovarian cancer), lymphomas, and germ cell tumours. The company in a release said approvals is for Cisplatin injection of one mg/ml packages in 50 ml and 100 ml multiple dose vials.
It is amongst the products in the drug shortage list of USFDA. According to the IMS data, the US market for generic Cisplatin is about $10 million.
Aviation sector allowed to raise up to $1 bn in ECB
New Delhi: After clearing the implementation of relaxed external commercial borrowing (ECB) norms to meet capital requirements in the power and road sectors yesterday, the finance ministry today paved the way for implementing the measures announced in the Budget for the airline sector.
Keeping in mind the immediate financing concerns of the civil aviation sector, Finance Minister Pranab Mukherjee, in his Budget speech, had announced companies in the aviation sector would be allowed to avail of ECBs for one year for working capital and refinancing of working capital rupee loans.
ECBs under this provision would have a ceiling of $1 billion for the entire civil aviation sector. The cap for individual airline companies has been fixed at $300 million. This may be availed either in a lump sum or in tranches, depending upon the utilisation of the limit during a particular financial year.
Saying the Reserve Bank of India (RBI) would come out with the relevant circulars and notification for implementing these measures within a week, Joint Secretary, (capital markets), Thomas Mathew, said the proposals of individual companies would be considered by RBI under the approval route, based on parameters such as cash flows and the capacity of individual companies to repay these loans from their foreign exchange earnings.
To increase access to ECBs, RBI would consider relaxation in the average maturity period for ECBs above $20 million from five to three years, he said, adding the central bank would also keep a tab on the utilisation of the funds.
“Working capital loans are short-term and attract higher interest rates. Raising these through ECBs would reduce costs by 200 basis points,” said an Air India official, on condition of anonymity.
On the possibility of raising the $1-billion limit, Mathew said, “We will answer this issue when we reach such a situation.” The civil aviation ministry has already demanded this limit be raised to $2 billion.
Keeping in mind the immediate financing concerns of the civil aviation sector, Finance Minister Pranab Mukherjee, in his Budget speech, had announced companies in the aviation sector would be allowed to avail of ECBs for one year for working capital and refinancing of working capital rupee loans.
ECBs under this provision would have a ceiling of $1 billion for the entire civil aviation sector. The cap for individual airline companies has been fixed at $300 million. This may be availed either in a lump sum or in tranches, depending upon the utilisation of the limit during a particular financial year.
Saying the Reserve Bank of India (RBI) would come out with the relevant circulars and notification for implementing these measures within a week, Joint Secretary, (capital markets), Thomas Mathew, said the proposals of individual companies would be considered by RBI under the approval route, based on parameters such as cash flows and the capacity of individual companies to repay these loans from their foreign exchange earnings.
To increase access to ECBs, RBI would consider relaxation in the average maturity period for ECBs above $20 million from five to three years, he said, adding the central bank would also keep a tab on the utilisation of the funds.
“Working capital loans are short-term and attract higher interest rates. Raising these through ECBs would reduce costs by 200 basis points,” said an Air India official, on condition of anonymity.
On the possibility of raising the $1-billion limit, Mathew said, “We will answer this issue when we reach such a situation.” The civil aviation ministry has already demanded this limit be raised to $2 billion.
India emerges as the most optimistic nation in Asia: Survey
New Delhi: India has been ranked as the most optimistic nation in Asia, according to a global consumer confidence survey, titled 'MasterCard Worldwide Index of Consumer Confidence'.
India at 81.2 - in an index which is calculated with 100 as the most optimistic - emerged as the leader in Asia.
The index is based on a survey which measures consumer confidence on prevailing expectations in the market over the next six months, based on indicators such a economic growth, employment, stock market, regular income and quality of life.
The survey was carried out between December 5, 2011 and February 8, 2012 and involved 12,915 respondents in 25 countries.
India at 81.2 - in an index which is calculated with 100 as the most optimistic - emerged as the leader in Asia.
The index is based on a survey which measures consumer confidence on prevailing expectations in the market over the next six months, based on indicators such a economic growth, employment, stock market, regular income and quality of life.
The survey was carried out between December 5, 2011 and February 8, 2012 and involved 12,915 respondents in 25 countries.
VA Tech Wabag launches pipeline to draw sea water
Chennai: Come September Chennai's residents will have a new source of drinking water, a 100-million litre a day desalination plant that will produce fresh water from sea water.
The Rs 1,000-crore plant being set up by VA Tech Wabag for the Chennai Metropolitan Water Supply and Sewerage Board, the public sector water utility, achieved an important milestone on April 16 when a km-long, 1.6-metre pipeline was launched into the sea to take in over 300 million litres of sea water a day.
For VA Tech Wabag and the water business in India this is a major development, says Mr Rajiv Mittal, Managing Director, VA Tech Wabag.
It is the largest desalination plant in India and the largest contract for the company.
Others Exploring options
This is the first time a water utility is putting up the plant directly and this project is being watched by many coastal State Governments that are exploring options of setting up a desalination plant. States such as Gujarat, Andhra Pradesh and Maharashtra are water starved and considering desalination as an option.
VA Tech Wabag, the Chennai-based multinational player in water and waste water management, bagged the contract to set up the desalination plant and operate and maintain it for seven years after completion.
Mega project
Work on the project started early in 2010 and once implemented, in three months' time, it will put the company among the few with a capacity to handle mega projects.
Also, over the next seven years the company will handle the operation and maintenance which represents a steady revenue of about Rs 70 crore a year.
VA Tech Wabag, listed on the stock exchanges BSE and NSE, is collaborating with IDE Technologies of Israel to set up the project funded by the Government of India. The facility is coming up about 50 km south Chennai on the East Coast Road.
This is the second desalination plant to supply water to the city with the first in operation at Minjur to the North of Chennai as a private sector project on design-build-own-operate-transfer basis by IVRCL, Hyderabad.
Daimler sets up truck factory in TN
Chennai: German auto maker Daimler AG has decided to consolidate its truck manufacturing operations in India. As part of the plan, it will shift the production of Actros from Pune to Oragadam in Tamil Nadu.
The company launched the facility in Oragadam on Wednesday. It will manufacture the BharatBenz trucks and all commercial vehicles there.
The Rs 4,400-crore facility will have an initial capacity of 36,000 units, including 24,000 units for heavy duty trucks and 12,000 for light duty trucks under the BharatBenz brand.
The capacity could be raised to 70,000 units per annum, said Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz cars. The facility is spread over 400 acres.
Zetsche said India was not just emerging, but thriving. The exceptional role of the economy was a matter of fact — not next decade, not next year, but today. “If India’s economy were in Mercedes, it would have to be an SLS AMG super sports car.
“If you don’t make it here, you won’t make it at all. Because a strong position in the global market requires a strong position in India and at Daimler, we always go for the leading position in our industry. That’s why India will play an increasingly important role in our business”.
The company said it could join hands with the Renault-Nissan alliance for commercial vehicles in India, although there was no immediate plan.
Zetsche said, “Though we don’t have any plan now, we don’t rule out the possibility. Our partnership is not restricted to any region. It is possible to do something together in India as well”.
Daimler and Renault-Nissan build commercial vehicles together in Europe.
The Oragadam facility can roll out one heavy duty vehicle every 11 minutes and one light duty vehicle every 22 minutes. The new plant will make light and heavy duty trucks in the 7-49-tonne range and is meant for both domestic and international markets, including Asean and Africa.
“Our priority is the domestic market, once we address the domestic market, we will look at exports,” said Andres Renschler, member of the board of management at Daimler AG and head of Daimler Trucks and Daimler Buses.
The first of these trucks, used in construction, mining and on highways, will be rolled out in September, he added.
According to compay sources, the vehicles will have 85 per cent localisation. Besides assembling, the facility will also have a power train facility to cater to heavy duty trucks, with a capacity of 24,000 engines. For light duty vehciles, the engines will be manufactured at Pithampur in Madhya Pradesh.
A separate facility, within the Oragdam plant, will be created to manufacture the Actros trucks, which are high-end heavy duty trucks and the largest-selling truck model worldwide.
According to a Daimler India Commercial Vehicles (DICV) official, the company wants to have all truck manufacturing in one location while cars will be rolled out of the Pune plant.
DICV will also shift its research and development (R&D) team to the plant site though from a different location in Oragadam. Currently, the auto major employees around 1,000 people in its R&D unit.
The official said 85 per cent of the components were locally sourced.
Korean Woori Bank opens first India branch in Chennai
Chennai: Seoul-headquartered, South Korean Government-owned Woori Bank has opened its maiden India branch in Chennai with a capital of $35 million.
Mr Soon Woo Lee, president and CEO of the bank, told ET via a translator, "We will provide assistance to Korean companies that have entered the market ahead of us. Once that is done, we will focus on localisation, accommodating the needs of the India companies and customers."
He said the bank was on the verge of starting operations in 2007 but had to put it off after the global financial crisis struck.
Chennai houses more than 170 Korean companies, including big names such as Hyundai Motors, Lotte and Samsung. Apart from this, many local Indian vendors in Chennai are working together with Korean companies. The number of Koreans in Chennai has also doubled in the last three years. It has gone up to 4,000 from 1,500.
A lot of Korean shops and restaurants have also emerged in and around Sriperumbudur, the industrial hub.
"Two Korean firmsDoosan and Mando are opening operations in India and they focus on infrastructure. We see the opportunity in taking up state or government projects through them," said Lee.
Moo Soo Kim, chief executive officer of the bank's Indian operations, said," The opening of Woori Bank will also ensure that there is mutual development and cooperation between Korea and India. We would also be of good support in the local development of Tamil Nadu with the help of Korean firms."
West Bengal government joins hand with UK to develop fiscal instruments for climate change
Kolkata: British Deputy High Commission-Kolkata and CII along with West Bengal Industrial Development Corporation (WBIDC) are working with technical partners CII-Sohrabji Godrej Green Business Centre, Eunomia Research and Consulting, UK and Jadavpur University on a first-of-its-kind project in India titled "Fiscal Instruments for Climate - Friendly Industrial Development in West Bengal and Odisha."
This project is being funded by UK FCO's Prosperity Fund India programme, to help develop low carbon industrial policies of the states. The project objective is to help West Bengal and other states adopt appropriate fiscal instruments by 2013 to mobilize low carbon investment and facilitate low carbon industrial development.
In this regard, CII together with British Deputy High Commission, Kolkata, will be organising a session on UK-India partnership: Fiscal Instruments for Low Carbon Business to launch the project reports on national and international review of lessons learnt from fiscal instruments for low carbon industrial development.
Mr Gregory Barker minister of department of energy and climate change, UK, Mr Partha Chatterjee, West Bengal commerce and industry minister and Dr Sudarsan Ghosh Dastidar, the state environment minister will hold a discussion on this issue.
This project is being funded by UK FCO's Prosperity Fund India programme, to help develop low carbon industrial policies of the states. The project objective is to help West Bengal and other states adopt appropriate fiscal instruments by 2013 to mobilize low carbon investment and facilitate low carbon industrial development.
In this regard, CII together with British Deputy High Commission, Kolkata, will be organising a session on UK-India partnership: Fiscal Instruments for Low Carbon Business to launch the project reports on national and international review of lessons learnt from fiscal instruments for low carbon industrial development.
Mr Gregory Barker minister of department of energy and climate change, UK, Mr Partha Chatterjee, West Bengal commerce and industry minister and Dr Sudarsan Ghosh Dastidar, the state environment minister will hold a discussion on this issue.
Budget proposals on ECBs for power, road sectors take off
New Delhi: The Union finance ministry on Wednesday began implementing the Budget proposals on external commercial borrowing (ECB) for capital needs of the power and roads sectors. It also indicated the same thing would be done for the airline sector later this month.
This comes a day after Finance Minister Pranab Mukherjee’s assertion that the 50-basis-point repo rate cut by the Reserve Bank of India (RBI) would be followed by policy steps in tandem. RBI, too, had made it publicly clear that its monetary policy initiatives needed to be backed by government policy action.
On on Wednesday’s changes, the ministry’s joint secretary, capital markets, Thomas Mathew, said RBI would be issuing the relevant circulars and notifications within a week.
Power companies have now been allowed ECB to finance their rupee debt up to a maximum of 40 per cent, provided the remaining 60 per cent of ECB raised is utilised for investment in a new project. “This would increase access to cheaper funds for companies in the power sector,” said Mathew.
Currently, Indian companies in the infrastructure sector are permitted to use 25 per cent of fresh ECB raised by them towards refinancing of rupee loans under the approval route.
To also provide a fillip to road construction, the Budget for 2012-13 proposed allowing ECB for capital expenditure on the maintenance and operations of toll systems, provided these were part of the original project. “Implementation of this policy decision will provide an additional source of low-cost capital,” said Mathew on Wednesday.
Other measures proposed in this year’s Budget included permitting ECB for working capital requirements of the airline industry for a year, subject to a ceiling of $1 billion and allowing ECB for low-cost affordable housing projects. Also proposed were reduction in the rate of withholding tax on interest payments on ECB from 20 per cent to five per cent for three years for power, airlines, roads and bridges, ports and shipyards, affordable housing, fertilisers and dam projects.
Mathew said implementation of the step proposed for meeting the capital requirement of the airline sector was next. And, all the other measures announced in the Budget would be implemented soon.
He said there was no proposal to raise the ECB ceiling for 2012-13 but the existing limit would be adequate, not a hindrance. The ECB ceiling for 2011-12 had been enhanced from $20 bn to $30 bn.
This comes a day after Finance Minister Pranab Mukherjee’s assertion that the 50-basis-point repo rate cut by the Reserve Bank of India (RBI) would be followed by policy steps in tandem. RBI, too, had made it publicly clear that its monetary policy initiatives needed to be backed by government policy action.
On on Wednesday’s changes, the ministry’s joint secretary, capital markets, Thomas Mathew, said RBI would be issuing the relevant circulars and notifications within a week.
Power companies have now been allowed ECB to finance their rupee debt up to a maximum of 40 per cent, provided the remaining 60 per cent of ECB raised is utilised for investment in a new project. “This would increase access to cheaper funds for companies in the power sector,” said Mathew.
Currently, Indian companies in the infrastructure sector are permitted to use 25 per cent of fresh ECB raised by them towards refinancing of rupee loans under the approval route.
To also provide a fillip to road construction, the Budget for 2012-13 proposed allowing ECB for capital expenditure on the maintenance and operations of toll systems, provided these were part of the original project. “Implementation of this policy decision will provide an additional source of low-cost capital,” said Mathew on Wednesday.
Other measures proposed in this year’s Budget included permitting ECB for working capital requirements of the airline industry for a year, subject to a ceiling of $1 billion and allowing ECB for low-cost affordable housing projects. Also proposed were reduction in the rate of withholding tax on interest payments on ECB from 20 per cent to five per cent for three years for power, airlines, roads and bridges, ports and shipyards, affordable housing, fertilisers and dam projects.
Mathew said implementation of the step proposed for meeting the capital requirement of the airline sector was next. And, all the other measures announced in the Budget would be implemented soon.
He said there was no proposal to raise the ECB ceiling for 2012-13 but the existing limit would be adequate, not a hindrance. The ECB ceiling for 2011-12 had been enhanced from $20 bn to $30 bn.
Friday, April 20, 2012
Lanco Infra completes 56 MW grid connected solar photovoltaic power plants in Gujarat
Ahmedabad: Lanco Infratech subsidiary Lanco Solar announced the completion of 56 mw grid connected solar photovoltaic power plants in Gujarat.
It includes three plants of 35 MW owned by Lanco Infra and additional 21 MW built as turnkey EPC for Gujarat Power Corporation Ltd (GPCL), GSPC Pipavav Power Company Ltd, GHI Energy and Gujarat State Electricity Corporation.
These Power Plants will generate upto 90 million units of green electricity annually resulting in reduction of CO2 emissions by 85757 tonnes annually, claimed Lanco Infra in its media statement.
"We look forward to our continued growth here over our existing 56 MW, that we have built as a Developer & an EPC player in the last one and a half years in Gujarat, said Lanco Solar CEO V Saibaba. GPCL partnered with Lanco for its 5 MW PV Project in Gujarat Solar Park at Charanka village.
On Thursday, the state government will dedicate 600 mw of solar power generation capacity, including 214 mw at Gujarat Solar Park. Recently, NKG Infra also announced commissioning of 10 mw of solar project at Solar Park.
Lanco Solar is claiming to be building more than 350 mw of solar farms as a developer and an EPC player. More than 90 MW solar PV is currently operational at different locations in India, Europe and USA. The company is also currently bidding and working on solar projects in Middle East and Africa, read the statement.
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