New Delhi: India’s management education fraternity has delivered its judgment on the country's top business schools. Among the top B-schools in India (mentioned alphabetically here) are the Indian Institutes of Management in Ahmedabad, Bangalore, Kolkata and Indore; Management Development Institute at Gurgaon; National Institute of Industrial Engineering in Mumbai; Xavier Institute of Management, Bhubaneswar; and XLRI, Jamshedpur.
The BS Best B-School Survey 2012 has been conducted by Business Standard in association with IMRB International, a leading market research agency in India, and the results of the thirteenth survey of B-schools are available in the May 2012 issue of the Indian Management, which is now on stands.
The survey does not aim to rank the institutes, but puts them in 14 hierarchical categories: Super League 1, Super League 2, A1 through A8, and B1 through B4. The scores have been allotted on two broad parameters—audit scores and perception scores. The final score is a weighted aggregate, which has been used to put the institutes in one of the 14 categories that have been worked out.
The audit module is comprehensive—it takes into account a range of elements such as intellectual capital, infrastructure, admissions and placements, industry interface, governance and the scale of operations, each of which can be measured objectively. The perception scores take into account the viewpoint of the industry and the alumni.
This makes the survey of B-schools totally objective, unbiased and transparent, and helps benchmark the management institutes in addition to providing authentic information to all the stakeholders.
The survey is open to business schools all over India. The eligibility criterion is that they should be approved by the All India Council for Technical Education or the government or a university. Also, at least two batches of students should have passed out of the institute. This is to assess the placements that happen at the campus. The questionnaires are sent to all approved B-schools, and they are requested to revert with the completed questionnaires to IMRB. Each completed questionnaire is thoroughly scrutinised for missing and misrepresented data, if any. The data are checked against the previous years’ figures to discover and subsequently validate any major changes. Following this, a query sheet is generated for and cross-checked with each institute, through e-mail, phone or personal visits.
For the latest survey, questionnaires were sent to 2,400 business schools. About 200 schools sent their entries within the time limit. We had to drop a few institutions from the final 197 that appear this year because the data supplied by them were incomplete or there were some unexplained deviation from the data presented last year. We are glad to note there were 63 new entrants in the list this year compared to last year.
Success in my Habit
Wednesday, May 30, 2012
Yamaha to scale up R&D ops; cheapest bike on the cards
New Delhi: Japanese two-wheeler maker Yamaha Motor Co Ltd is looking at scaling up research and development (R&D) operations in India, with an aim to designing the country’s cheapest motorcycle indigenously and shoring up volumes in the fast-growing domestic market.
“Until this year, basic development of products was being done by Yamaha at our headquarters in Japan. We have an R&D centre to make minor changes on models in India. In future, our R&D team should be independent and capable of developing a new motorcycle in the commuter segment,” said Hiroyuki Suzuki, chief executive officer and managing director of India Yamaha Motor.
The company is working out the investment required for stepping up R&D activities in the country.
Yamaha’s new low-cost bike is expected to be priced at around $500 (Rs 27,500), cheaper than the entry-level motorcycle ‘Crux’, tagged at Rs 38,365.
Market leader Hero MotoCorp Ltd’s ‘CD Dawn’ is the cheapest product in the category, starting at Rs 36,300 (ex-showroom, Delhi).
Yamaha, at present, has marginal share in the low-cost commuter segment with the ‘YBR110’ and ‘Crux’, which together sells 5000-odd units every month.
The move to develop a low-cost motorcycle comes close on the heels of compatriot Honda Motor Co Ltd (HMC) launching its cheapest motorcycle, the 110 cc ‘Dream Yuga’, in India.
Priced at Rs 44,642 (ex-showroom, Delhi), the bike is expected to shore up Honda’s market share in the seven-million strong commuter segment in the country.
“We will have production volume of two million units in 2016. Scooters will contribute 30 per cent to our overall sales, the 150 cc models will account for 40 per cent and the remaining numbers will come in from entry-level motorcycles,” Suzuki said. Overall, the company is eyeing a 10 per cent share in the Indian two-wheeler market by 2016.
Yamaha recently announced plans to invest around Rs 1,500 crore to set up a new plant in Tamil Nadu and enhance capacity across its existing units. The new low-cost bike will be manufactured at Chennai and exported to markets in Africa.
“Until this year, basic development of products was being done by Yamaha at our headquarters in Japan. We have an R&D centre to make minor changes on models in India. In future, our R&D team should be independent and capable of developing a new motorcycle in the commuter segment,” said Hiroyuki Suzuki, chief executive officer and managing director of India Yamaha Motor.
The company is working out the investment required for stepping up R&D activities in the country.
Yamaha’s new low-cost bike is expected to be priced at around $500 (Rs 27,500), cheaper than the entry-level motorcycle ‘Crux’, tagged at Rs 38,365.
Market leader Hero MotoCorp Ltd’s ‘CD Dawn’ is the cheapest product in the category, starting at Rs 36,300 (ex-showroom, Delhi).
Yamaha, at present, has marginal share in the low-cost commuter segment with the ‘YBR110’ and ‘Crux’, which together sells 5000-odd units every month.
The move to develop a low-cost motorcycle comes close on the heels of compatriot Honda Motor Co Ltd (HMC) launching its cheapest motorcycle, the 110 cc ‘Dream Yuga’, in India.
Priced at Rs 44,642 (ex-showroom, Delhi), the bike is expected to shore up Honda’s market share in the seven-million strong commuter segment in the country.
“We will have production volume of two million units in 2016. Scooters will contribute 30 per cent to our overall sales, the 150 cc models will account for 40 per cent and the remaining numbers will come in from entry-level motorcycles,” Suzuki said. Overall, the company is eyeing a 10 per cent share in the Indian two-wheeler market by 2016.
Yamaha recently announced plans to invest around Rs 1,500 crore to set up a new plant in Tamil Nadu and enhance capacity across its existing units. The new low-cost bike will be manufactured at Chennai and exported to markets in Africa.
GVK Power & Infrastructure gets green nod for $10-bn Australia coal, rail project
Hyderabad: Infrastructure conglomerate GVK has received environmental clearance from the Queensland government in Australia for its Alpha coal and rail project. The company has set aside $ 10 billion for the project.
The approval is crucial to the company as its Alpha Project is now the only Galilee Basin proponent with an approved Environmental Impact Statement (EIS). The project, expected to generate 4,000 jobs at peak, is being run by Hancock Coal, in which 79% is owned by GVK and 21% by Gina Rinehart, the world's richest woman, according to Forbes.
Last year, GVK paid $1.26 billion to buy the coal assets and related logistics infrastructure in Australia from Hancock through group company GVK Coal Developers (Singapore). The three mines - Alpha, Alpha West and Kevin's Corner are known to have total resources of 8 billion tonnes of thermal coal in addition to the rail and port facilities.
The Alpha Coal Project consists of a 30 million tonnes per annum (mtpa) mine, a 495km standard gauge railway with 60mtpa approvals and a terminal and two berths at Abbot Point catering to at least 60mtpa of thermal coal destined for Asian markets.
GVK Reddy, CMD, GVK group, said the latest milestone "paves the way for us to complete financing and secure final mining approvals for the Alpha Project in the second half of 2012. The coordinator-general's report is a major step in finalising the regulatory requirements and enables us to fast track the completion of key construction and operations contracts." In 2011 GVK Hancock delivered the first (and only Galilee Basin) bulk samples from its Alpha site to power stations in South Korea and China.
Commenting on the development, GV Sanjay Reddy, vice- chairman, GVK group, who is spearheading the project, said: "The EIS is yet another milestone towards this goal and the October 2010 declaration of the rail corridor and signing the port framework agreement for T3 at Abbot Point all adds to the advanced nature of the project."
The infrastructure developed by this project - such as the rail, port and power will benefit other local developments. GVK has interests in energy, resources, airports, transportation, hospitality and life sciences. It has projects in the pipeline worth over 30,000 crore ($ 6.6 billion) in India.
The approval is crucial to the company as its Alpha Project is now the only Galilee Basin proponent with an approved Environmental Impact Statement (EIS). The project, expected to generate 4,000 jobs at peak, is being run by Hancock Coal, in which 79% is owned by GVK and 21% by Gina Rinehart, the world's richest woman, according to Forbes.
Last year, GVK paid $1.26 billion to buy the coal assets and related logistics infrastructure in Australia from Hancock through group company GVK Coal Developers (Singapore). The three mines - Alpha, Alpha West and Kevin's Corner are known to have total resources of 8 billion tonnes of thermal coal in addition to the rail and port facilities.
The Alpha Coal Project consists of a 30 million tonnes per annum (mtpa) mine, a 495km standard gauge railway with 60mtpa approvals and a terminal and two berths at Abbot Point catering to at least 60mtpa of thermal coal destined for Asian markets.
GVK Reddy, CMD, GVK group, said the latest milestone "paves the way for us to complete financing and secure final mining approvals for the Alpha Project in the second half of 2012. The coordinator-general's report is a major step in finalising the regulatory requirements and enables us to fast track the completion of key construction and operations contracts." In 2011 GVK Hancock delivered the first (and only Galilee Basin) bulk samples from its Alpha site to power stations in South Korea and China.
Commenting on the development, GV Sanjay Reddy, vice- chairman, GVK group, who is spearheading the project, said: "The EIS is yet another milestone towards this goal and the October 2010 declaration of the rail corridor and signing the port framework agreement for T3 at Abbot Point all adds to the advanced nature of the project."
The infrastructure developed by this project - such as the rail, port and power will benefit other local developments. GVK has interests in energy, resources, airports, transportation, hospitality and life sciences. It has projects in the pipeline worth over 30,000 crore ($ 6.6 billion) in India.
Foreign investor norms eased to accelerate capital inflows
New Delhi: The government today allowed qualified foreign investors (QFIs) from six member-countries of the Gulf Cooperation Council (GCC) and 27 countries of the European Commission (EC) to invest in the Indian capital market to enhance foreign capital inflows.
Saudi Arabia, Bahrain, the United Arab Emirates (UAE), Oman, Qatar and Kuwait are the six countries.
With this, a $1-billion window over and above the current $20-billion limit has been created for QFI investment in corporate bonds and mutual fund debt schemes. The window is meant to test the waters for the time being and could be widened if required. Norms for opening accounts in India and keeping funds in them have also been relaxed substantially.
A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards and is a signatory to the International Organisation of Securities Commission’s (IOSCO’s) Multilateral Memorandum of Understanding (MMoU). QFIs do not include FIIs (foreign institutional investors) or sub-accounts.
The steps are part of the finance ministry’s measures to facilitate a seamless and quick flow of foreign funds into the country by removing bottlenecks identified during recent consultations with the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi) and various market participants to make the existing QFI mechanism more attractive to potential investors.
Announcing the new steps, Thomas Mathew, joint secretary, capital markets, said, “The list of countries from where QFIs could invest in the Indian capital market has been expanded. Originally, it was limited to the 34 countries that are members of the FATF.”
Mathew said as only the residents of these 34 countries were eligible to qualify as QFIs, several enquiries were received from GCC countries and also 27 member-countries of the EC requesting inclusion of their residents as QFIs.
“In view of the possibility of attracting high net-worth entities from these jurisdictions, the definition of QFIs has now been enlarged to cover the residents of FATF member-countries and those from countries of the GCC and the EC,” he said.
On the possibility of round-tripping and manipulations through this mode, Mathew said very strong KYC norms would be there to avoid that.
The steps to ease norms for opening of accounts and keeping funds in them include the decision to allow QFIs to open individual non-interest bearing rupee bank accounts with authorised dealer banks in India for receiving funds and making payments for transactions in securities they are eligible to invest.
QFIs are not allowed to open individual bank accounts currently and they can invest only through a common pooled bank account of their depository participant (DP). The restriction on the number of days funds could be kept in the individual accounts of QFIs has also been dispensed with.
At present, funds remitted by QFIs for investments are required to be transferred to their foreign bank accounts if such funds are not invested, as permitted, within five working days of the receipt of funds in their accounts.
“This restriction was proving to be a dampener for genuine investors in view of the high cost of transfer of funds,” said Mathew.
He added Sebi would issue a circular to provide QFIs with a certain amount of operational flexibility for appointing their custodians and brokers to route their investments.
The RBI and the Sebi are expected to issue relevant circulars, incorporating the changes announced, to operationalise the Budget announcement related to QFI investment in corporate bonds and mutual fund debt schemes within seven days.
The Central Board of Direct Taxes would issue clarifications on tax-related issues pertaining to QFIs shortly, said Mathew, adding the finance ministry was looking at 6-14 months to see the optimisation of QFI inflows through these facilitation measures.
The ministry will conduct roadshows in five Gulf nations, the UAE, Saudi Arabia, Bahrain, Oman and Kuwait, during June 10-15 for this purpose.
Saudi Arabia, Bahrain, the United Arab Emirates (UAE), Oman, Qatar and Kuwait are the six countries.
With this, a $1-billion window over and above the current $20-billion limit has been created for QFI investment in corporate bonds and mutual fund debt schemes. The window is meant to test the waters for the time being and could be widened if required. Norms for opening accounts in India and keeping funds in them have also been relaxed substantially.
A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards and is a signatory to the International Organisation of Securities Commission’s (IOSCO’s) Multilateral Memorandum of Understanding (MMoU). QFIs do not include FIIs (foreign institutional investors) or sub-accounts.
The steps are part of the finance ministry’s measures to facilitate a seamless and quick flow of foreign funds into the country by removing bottlenecks identified during recent consultations with the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi) and various market participants to make the existing QFI mechanism more attractive to potential investors.
Announcing the new steps, Thomas Mathew, joint secretary, capital markets, said, “The list of countries from where QFIs could invest in the Indian capital market has been expanded. Originally, it was limited to the 34 countries that are members of the FATF.”
Mathew said as only the residents of these 34 countries were eligible to qualify as QFIs, several enquiries were received from GCC countries and also 27 member-countries of the EC requesting inclusion of their residents as QFIs.
“In view of the possibility of attracting high net-worth entities from these jurisdictions, the definition of QFIs has now been enlarged to cover the residents of FATF member-countries and those from countries of the GCC and the EC,” he said.
On the possibility of round-tripping and manipulations through this mode, Mathew said very strong KYC norms would be there to avoid that.
The steps to ease norms for opening of accounts and keeping funds in them include the decision to allow QFIs to open individual non-interest bearing rupee bank accounts with authorised dealer banks in India for receiving funds and making payments for transactions in securities they are eligible to invest.
QFIs are not allowed to open individual bank accounts currently and they can invest only through a common pooled bank account of their depository participant (DP). The restriction on the number of days funds could be kept in the individual accounts of QFIs has also been dispensed with.
At present, funds remitted by QFIs for investments are required to be transferred to their foreign bank accounts if such funds are not invested, as permitted, within five working days of the receipt of funds in their accounts.
“This restriction was proving to be a dampener for genuine investors in view of the high cost of transfer of funds,” said Mathew.
He added Sebi would issue a circular to provide QFIs with a certain amount of operational flexibility for appointing their custodians and brokers to route their investments.
The RBI and the Sebi are expected to issue relevant circulars, incorporating the changes announced, to operationalise the Budget announcement related to QFI investment in corporate bonds and mutual fund debt schemes within seven days.
The Central Board of Direct Taxes would issue clarifications on tax-related issues pertaining to QFIs shortly, said Mathew, adding the finance ministry was looking at 6-14 months to see the optimisation of QFI inflows through these facilitation measures.
The ministry will conduct roadshows in five Gulf nations, the UAE, Saudi Arabia, Bahrain, Oman and Kuwait, during June 10-15 for this purpose.
AIF III Mauritius' FDI proposal among 25 cleared
New Delhi: The Government has approved 25 foreign direct investment (FDI) proposals worth Rs 2,973.40 crore including that of AIF III Mauritius.
AIF III Sub Pvt Ltd's proposal to bring in FDI worth Rs 1,000 crore has been approved. The Mauritius-based firm proposes to induct foreign investment in the units of a Fund constituted as a Trust.
The other key proposals included Microqual Techno Ltd's Rs 522.90-crore plan to increase foreign equity to carry out the business of wireless telecommunication.
The applications were cleared after recommendations of the Foreign Investment Promotion Board (FIPB) headed by the Economic Affairs Secretary, Mr R. Gopalan, the Finance Ministry said on Tuesday.
The proposal of Mauritius-based Mozart for infusion of foreign investment in an existing company in the pharmaceuticals sector (brownfield investments) was also been approved. The company has proposed to bring in investment worth Rs 300 crore.
Other proposals which have been approved are those of Genworth Financial Mortgage Guaranty India (Rs 124 crore), Plethico Pharmaceuticals, Mumbai (Rs 500 crore) and Kintetsu World Express (India), Karnataka (Rs 267.69 crore).
Thirteen proposals, including that of Fabindia Overseas, were deferred while eight proposals were rejected.
Among proposals which were rejected are Budenheim India, New Delhi; Hey House Publishers (I) and Growing Opportunity Finance (India), Chennai.
The next meeting of FIPB is scheduled to be held on Friday.
India allows FDI in most of the sectors through automatic route, but FIPB approval is required in certain sensitive sectors, like telecom.
AIF III Sub Pvt Ltd's proposal to bring in FDI worth Rs 1,000 crore has been approved. The Mauritius-based firm proposes to induct foreign investment in the units of a Fund constituted as a Trust.
The other key proposals included Microqual Techno Ltd's Rs 522.90-crore plan to increase foreign equity to carry out the business of wireless telecommunication.
The applications were cleared after recommendations of the Foreign Investment Promotion Board (FIPB) headed by the Economic Affairs Secretary, Mr R. Gopalan, the Finance Ministry said on Tuesday.
The proposal of Mauritius-based Mozart for infusion of foreign investment in an existing company in the pharmaceuticals sector (brownfield investments) was also been approved. The company has proposed to bring in investment worth Rs 300 crore.
Other proposals which have been approved are those of Genworth Financial Mortgage Guaranty India (Rs 124 crore), Plethico Pharmaceuticals, Mumbai (Rs 500 crore) and Kintetsu World Express (India), Karnataka (Rs 267.69 crore).
Thirteen proposals, including that of Fabindia Overseas, were deferred while eight proposals were rejected.
Among proposals which were rejected are Budenheim India, New Delhi; Hey House Publishers (I) and Growing Opportunity Finance (India), Chennai.
The next meeting of FIPB is scheduled to be held on Friday.
India allows FDI in most of the sectors through automatic route, but FIPB approval is required in certain sensitive sectors, like telecom.
Tuesday, May 29, 2012
Driving to Thailand from India could be a reality by 2016
Nay Pyi Daw: As India sought to expedite its infrastructural projects in Myanmar, PM Manmohan Singh and President U Thein Sein for the first time set a deadline, 2016, for trilateral road connectivity which will make it possible to drive right up to Thailand from India via Myanmar.
After the PM's "restricted" meeting with Thein Sein, who received Singh at his resplendent palace wearing the traditional Burmese gaung baung head gear, foreign secretary Ranjan Mathai announced that "efforts would be made to establish seamless trilateral connectivity by 2016".
Singh, who had a one-on-one with Thein Sein before the delegation talks, said India would undertake the repair of 71 bridges on the Tamu-Kalewa Friendship Road. India had earlier helped Myanmar build this road and the plan now is to link it with a place called Yargyi which will effectively link Moreh in India to Mae Sot in Thailand.
"The two leaders decided that India would undertake upgradation of the Kalewa-Yargyi road segment to highway standard while Myanmar would undertake upgradation of the Yargyi-Monywa stretch to highway standard by 2016," Mathai said, adding that the two leaders welcomed the revival of the Joint Task Force on the trilateral highway.
Indian officials believe that this highway will truly become the bridge between India and Asean countries and place it at the heart of India's Look East policy. Myanmar is the only Asean country with which India shares land boundary.
The two leaders decided to constitute a Joint Working Group to determine the technical and commercial feasibility of cross-border rail links and the commercial feasibility of direct shipping links between the two countries. The two sides also discussed the possibility of Indian participation in development of key infrastructure projects like the Dawei port in Myanmar.
However, one of India's most ambitious projects in Myanmar, Kaladan Multimodal Transport Project which will also link India's northeast with the mainland through Sittwe port in Myanmar, barely found a mention in the joint statement. "They expressed satisfaction at the steady progress being made on the Kaladan Multimodal Transit Transport Project," it said. It is well known though that the road component of the project leading to south Mizoram is getting delayed.
After the PM's "restricted" meeting with Thein Sein, who received Singh at his resplendent palace wearing the traditional Burmese gaung baung head gear, foreign secretary Ranjan Mathai announced that "efforts would be made to establish seamless trilateral connectivity by 2016".
Singh, who had a one-on-one with Thein Sein before the delegation talks, said India would undertake the repair of 71 bridges on the Tamu-Kalewa Friendship Road. India had earlier helped Myanmar build this road and the plan now is to link it with a place called Yargyi which will effectively link Moreh in India to Mae Sot in Thailand.
"The two leaders decided that India would undertake upgradation of the Kalewa-Yargyi road segment to highway standard while Myanmar would undertake upgradation of the Yargyi-Monywa stretch to highway standard by 2016," Mathai said, adding that the two leaders welcomed the revival of the Joint Task Force on the trilateral highway.
Indian officials believe that this highway will truly become the bridge between India and Asean countries and place it at the heart of India's Look East policy. Myanmar is the only Asean country with which India shares land boundary.
The two leaders decided to constitute a Joint Working Group to determine the technical and commercial feasibility of cross-border rail links and the commercial feasibility of direct shipping links between the two countries. The two sides also discussed the possibility of Indian participation in development of key infrastructure projects like the Dawei port in Myanmar.
However, one of India's most ambitious projects in Myanmar, Kaladan Multimodal Transport Project which will also link India's northeast with the mainland through Sittwe port in Myanmar, barely found a mention in the joint statement. "They expressed satisfaction at the steady progress being made on the Kaladan Multimodal Transit Transport Project," it said. It is well known though that the road component of the project leading to south Mizoram is getting delayed.
Ranbaxy gets US FDA nod for acne treatment drug
New Delhi: Ranbaxy Laboratories Ltd on Monday got approval from the US Food and Drug Administration to launch Absorica in the US market.
Through a business agreement with the Canadian firm, Cipher Pharmaceuticals Inc, Ranbaxy Laboratories Inc (RLI), a wholly owned subsidiary of RLL is expected to launch Absorica in the US in fourth quarter.
As per the agreement, Ranbaxy will pay royalties on net sales to Cipher. Absorica, a novel, is patented brand formulation of the acne medication isotretinoin, developed by Cipher, for treatment of severe recalcitrant nodular acne.
“Absorica is a milestone in our commitment to serve the dermatology community and will be the flagship brand for Ranbaxy’s specialised dermatology sales force,” Mr Venkat Krishnan, Senior Vice President and Regional Director, Americas, Ranbaxy said in a company statement.
Canadian delegation in Technopark
Thiruvananthapuram: A high-level delegation from the Canadian High Commission visited the Technopark here this morning.
It comprised Ms Sara Wilshaw, Minister (Commercial) and Ms Ivy Lerner-Frank, First Secretary, Education, Science and Technology, and Trade Commissioner.
Mr Girish Babu, Chief Executive Officer, and Mr M. Vasudevan, Senior Business Development Manager, Technopark, received the delegation.
It visited the Infosys campus here where company officials made presentations on company activities.
Ms Wilshaw said that she was impressed by the infrastructure facilities available in Technopark for IT and ITeS companies.
She promised to bring this to the notice of Canadian High Commission who is looking for investment opportunities in India.
"We had fruitful discussions with the delegation and hope to see some strategic developments based on them," said Mr Girish Babu.
"We are positive that the delegation will carry with them good feedback on Technopark," he added.
Mr Harsh Dhingra, Director, Services, and Head, Business Development at Bombardier Transportation, had accompanied the Canadian delegation.
JSPL buys 10% in Gujarat NRE's Oz unit
Mumbai: Jindal Steel and Power Ltd (JSPL), through its Mauritian unit, bought a 10 per cent stake in Gujarat NRE Coke Ltd’s Australian subsidiary, Gujarat NRE Coking Coal (GNM), for around $25 million (Rs 137.5 crore), the company said on Monday.
JSPL paid $0.25 per share for 100 million shares of GNM, which was a 48 per cent premium to GNM’s closing price of $0.17 per share on May 25.
Apart from the stake sale, the two companies also signed an off-take agreement for supply of five million tonnes (mt) of coking coal for Jindal Steel’s India operations for 10 years.
GNM said: “The off-take agreement over 10 years for a total of 5 mt is based on an annual offtake of 0.5 mt of run-of-mine (ROM) coal with the option for additional quantity of 0.5 mt at benchmark-linked price.”
The Australian firm owns and operates two premium quality hard coking coal mines required in steelmaking. The deal is expected to be completed by May 30.
This is not a huge investment by JSPL, but is in line with the company’s strategy to pick up stakes in firms that can offer raw material security. Sushil Maroo, director (finance) at JSPL, told Business Standard: “This investment is part of our policy to secure coking coal supplies.”
Arun Kumar Jagatramka, executive chairman of Gujarat NRE, said: “This is a win-win deal for both parties since it provides secured supply of premium hard coking coal to Jindal Steel, while it diversifies the customer base of the company.”
On May 8, JSPL had acquired a 9.25 per cent stake in another Australian company, Apollo Minerals, for $1 million.
Gujarat NRE Q4 loss at Rs 45.5 crore
Gujarat NRE Coke posted a stand-alone net loss of Rs 45.51 crore for the quarter ended March 31, due to a host of reasons, including decline in sales, increased interest outgo and forex losses. The Kolkata-based coke producer had reported a net profit of Rs 51.64 crore in the corresponding quarter of 2010-11.
India, Myanmar ink pacts for co-operation, development
Naypyitaw (Myanmar): A new onshore oil block that will be explored by Jubilant Technologies, a paper mill to be set up by JK Mills and a pump plant by Kirloskar are the immediate business gains of Prime Minister Manmohan Singh’s visit to Myanmar, the first by an Indian Prime Minister in 25 years.
A joint statement by the two governments listed a host of other measures to bring India and Myanmar closer together. These included initiatives in economic cooperation, connectivity, development cooperation, trade and investment promotion, capacity building and human resource development, culture & people-to-people contacts, and academic exchanges.
Gaps in connectivity and physical infrastructural linkage with Myanmar in the highways, railways and civil aviation sectors are to be filled.
The scale of most of the projects undertaken is small, in recognition of the capacities of both sides. For instance, $5 million (Rs 27 crore) per year for five years will be allocated for small developmental projects such as schools, small roads & bridges, agriculture and agro-processing projects and related training programmes in the Naga Self Administered Zone (in the Sagaing division, bordering Manipur) and the Chin State (bordering Mizoram) in Myanmar. Road connectivity that will enable the Imphal-Mandalay bus service to be operational through the year (the road is currently unusable during the rainy season) will be undertaken.
An Air Services Agreement was signed, enabling Indian carriers to combine their flights to Myanmar with other destinations in Southeast Asia and elsewhere. A working group will discuss possibilities of enhancing rail connectivity, movement of freight from India to Southeast Asia and cooperation in the railway sector.
At the political level, the Prime Minister and President Thein Sein of Myanmar assured each other that territories of either country would not be allowed to be used for activities inimical to the other. This includes insurgents of all kinds.
A joint statement by the two governments listed a host of other measures to bring India and Myanmar closer together. These included initiatives in economic cooperation, connectivity, development cooperation, trade and investment promotion, capacity building and human resource development, culture & people-to-people contacts, and academic exchanges.
Gaps in connectivity and physical infrastructural linkage with Myanmar in the highways, railways and civil aviation sectors are to be filled.
The scale of most of the projects undertaken is small, in recognition of the capacities of both sides. For instance, $5 million (Rs 27 crore) per year for five years will be allocated for small developmental projects such as schools, small roads & bridges, agriculture and agro-processing projects and related training programmes in the Naga Self Administered Zone (in the Sagaing division, bordering Manipur) and the Chin State (bordering Mizoram) in Myanmar. Road connectivity that will enable the Imphal-Mandalay bus service to be operational through the year (the road is currently unusable during the rainy season) will be undertaken.
An Air Services Agreement was signed, enabling Indian carriers to combine their flights to Myanmar with other destinations in Southeast Asia and elsewhere. A working group will discuss possibilities of enhancing rail connectivity, movement of freight from India to Southeast Asia and cooperation in the railway sector.
At the political level, the Prime Minister and President Thein Sein of Myanmar assured each other that territories of either country would not be allowed to be used for activities inimical to the other. This includes insurgents of all kinds.
Monday, May 28, 2012
India expansion on for global cash & carry chains
New Delhi: International cash and carry chains in the retail sector want to expand through the year in India, despite the economic slowdown and dip in foreign investor confidence.
Having no foreign direct investment (FDI) restriction, these wholesale chains are allowed to sell products only to retailers, professional users, caterers, institutional buyers and other businesses, which need special licences to buy from these outlets.
Walmart, the $446-billion American retail giant, which operates cash and carry outlets in India in a 50-50 joint venture with the Bharti group, expects to open 12 to 15 wholesale outlets in 2012, against 10 in 2011. At an average cost of $6-7 million (Rs 33-38 crore) per store, excluding land and construction cost, 15 outlets would mean an investment of anything between Rs 500 crore and Rs 600 crore. With land and construction cost, total investment could double.
Even as Walmart has been waiting for the government to allow FDI in multi-brand retail, it is bullish on the India market for cash and carry outlets. It has opened two more in India this year and has a total of 17 till now.
Metro, the top German cash and carry group, which has an estimated annual revenue of euro 67 billion, is also planning to stay on the expansion path this year in India. While noting the challenging general economic conditions, a company spokesperson said, “Allocation of capex funds is to be prioritised more strongly.”
He said the Metro group had decided, therefore, “to first concentrate on like-for-like (existing stores) sales growth and to accelerate the expansion in selected countries, where we are already well established with our business model”. India is among the select countries where the German chain wants to continue to expand. As against three store launches in 2011, Metro has opened two (New Delhi and Jaipur) in the first five months of 2012. At around Rs 60-70 crore investment on each wholesale centre, a Metro spokesperson said many more outlets would be opened across the country over the next few years, but did not elaborate on the specifics.
French retail major Carrefour (annual sales worth euro 112 billion), which had launched one cash and carry outlet each in 2010 and 2011, may go for another store opening later this year, sector sources said. The company did not talk about its India plans. Carrefour, like Walmart, wants to set up operations in multi-brand retail in India and is waiting for the government to give a green signal. Its India head, Jean Noel Bironneau, had met commerce and industry minister Anand Sharma a few days before, perhaps to discuss issues related to multi-brand FDI.
UK-based Booker, a $6.5-billion cash and carry chain, has in the first five months of 2012 already surpassed last year’s store launch. This calendar year, it has opened two wholesale centres, with more planned, against just one in 2011. Zunaid Bangee, chief executive officer, Booker India, said the general global and European economic climate had not impacted the store opening plans. When asked if the company’s investment decisions would be influenced by the dip in global investor confidence in India at this point, Bangee replied, “No, this will not have an impact on our expansion plans.” The company plans to open up to 20 stores in India over the next five years. Its first outlet opened in Mumbai in 2009 and it has a total of four wholesale centres in the country.
Walmart, which had opened its first wholesale store in India in 2009, along with Bharti, dismisses the view that the global economic climate could influence its store expansion plans. “Saving people money so they can live better is at the heart of everything we do,” the spokesperson said, adding, “this is especially relevant in an economic slowdown”.
On global investors’ mood, a Bharti-Walmart spokesperson said, “The India story remains strong with the international business community.” Adding, “There is understanding and appreciation of the factors that impact policy making, particularly in India’s vibrant democracy.” Walmart is here in India for the long term, the executive added.
The Metro executive expressed similar sentiments. “We are confident in the big potential of the India market. We are on a growth path and well positioned to expand our presence in other parts of the country,” he said. The oldest international cash and carry chain in India, it opened its first outlet in the country some eight years before. Having picked up speed recently, it has a total of 11 wholesale outlets in India till now. Apart from India, Metro has launched two outlets, in both China and Kazakhstan, and one each in Poland, Russia and Vietnam this calendar year till April. “We will continue to grow in our existing markets, with a focus on Eastern Europe and Asia,” the executive said.
Cash-and-carry represents an opportunity worth around $150 billion (Rs 8.25 lakh crore) of the $500-billion (Rs 27.5 lakh crore) annual retail business in India.
Having no foreign direct investment (FDI) restriction, these wholesale chains are allowed to sell products only to retailers, professional users, caterers, institutional buyers and other businesses, which need special licences to buy from these outlets.
Walmart, the $446-billion American retail giant, which operates cash and carry outlets in India in a 50-50 joint venture with the Bharti group, expects to open 12 to 15 wholesale outlets in 2012, against 10 in 2011. At an average cost of $6-7 million (Rs 33-38 crore) per store, excluding land and construction cost, 15 outlets would mean an investment of anything between Rs 500 crore and Rs 600 crore. With land and construction cost, total investment could double.
Even as Walmart has been waiting for the government to allow FDI in multi-brand retail, it is bullish on the India market for cash and carry outlets. It has opened two more in India this year and has a total of 17 till now.
Metro, the top German cash and carry group, which has an estimated annual revenue of euro 67 billion, is also planning to stay on the expansion path this year in India. While noting the challenging general economic conditions, a company spokesperson said, “Allocation of capex funds is to be prioritised more strongly.”
He said the Metro group had decided, therefore, “to first concentrate on like-for-like (existing stores) sales growth and to accelerate the expansion in selected countries, where we are already well established with our business model”. India is among the select countries where the German chain wants to continue to expand. As against three store launches in 2011, Metro has opened two (New Delhi and Jaipur) in the first five months of 2012. At around Rs 60-70 crore investment on each wholesale centre, a Metro spokesperson said many more outlets would be opened across the country over the next few years, but did not elaborate on the specifics.
French retail major Carrefour (annual sales worth euro 112 billion), which had launched one cash and carry outlet each in 2010 and 2011, may go for another store opening later this year, sector sources said. The company did not talk about its India plans. Carrefour, like Walmart, wants to set up operations in multi-brand retail in India and is waiting for the government to give a green signal. Its India head, Jean Noel Bironneau, had met commerce and industry minister Anand Sharma a few days before, perhaps to discuss issues related to multi-brand FDI.
UK-based Booker, a $6.5-billion cash and carry chain, has in the first five months of 2012 already surpassed last year’s store launch. This calendar year, it has opened two wholesale centres, with more planned, against just one in 2011. Zunaid Bangee, chief executive officer, Booker India, said the general global and European economic climate had not impacted the store opening plans. When asked if the company’s investment decisions would be influenced by the dip in global investor confidence in India at this point, Bangee replied, “No, this will not have an impact on our expansion plans.” The company plans to open up to 20 stores in India over the next five years. Its first outlet opened in Mumbai in 2009 and it has a total of four wholesale centres in the country.
Walmart, which had opened its first wholesale store in India in 2009, along with Bharti, dismisses the view that the global economic climate could influence its store expansion plans. “Saving people money so they can live better is at the heart of everything we do,” the spokesperson said, adding, “this is especially relevant in an economic slowdown”.
On global investors’ mood, a Bharti-Walmart spokesperson said, “The India story remains strong with the international business community.” Adding, “There is understanding and appreciation of the factors that impact policy making, particularly in India’s vibrant democracy.” Walmart is here in India for the long term, the executive added.
The Metro executive expressed similar sentiments. “We are confident in the big potential of the India market. We are on a growth path and well positioned to expand our presence in other parts of the country,” he said. The oldest international cash and carry chain in India, it opened its first outlet in the country some eight years before. Having picked up speed recently, it has a total of 11 wholesale outlets in India till now. Apart from India, Metro has launched two outlets, in both China and Kazakhstan, and one each in Poland, Russia and Vietnam this calendar year till April. “We will continue to grow in our existing markets, with a focus on Eastern Europe and Asia,” the executive said.
Cash-and-carry represents an opportunity worth around $150 billion (Rs 8.25 lakh crore) of the $500-billion (Rs 27.5 lakh crore) annual retail business in India.
BHEL commissions 500 MW unit at Rihand
New Delhi: Bharat Heavy Electricals Ltd (BHEL) has commissioned the first 500-MW unit at NTPC’s Rihand Super Thermal Power Station (STPS) stage III in Uttar Pradesh.
With this, 12 million units of electricity will be added to the grid of the power-deficit state everyday, the company said in a statement.
BHEL has earlier commissioned all the four 500-MW units operating at the power project. With the commissioning of the fifth unit, the cumulative generating capacity of Rihand STPS has gone up to 2,500 MW.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of two steam generator and turbine generator sets of 500 MW each.
The steam generator and turbine generator was manufactured at the company’s Tiruchi and Haridwar plants, respectively, BHEL said.
With this, 12 million units of electricity will be added to the grid of the power-deficit state everyday, the company said in a statement.
BHEL has earlier commissioned all the four 500-MW units operating at the power project. With the commissioning of the fifth unit, the cumulative generating capacity of Rihand STPS has gone up to 2,500 MW.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of two steam generator and turbine generator sets of 500 MW each.
The steam generator and turbine generator was manufactured at the company’s Tiruchi and Haridwar plants, respectively, BHEL said.
Sahara inks deal to build Notun Dhaka in Bangladesh
New Delhi: Sahara India Pariwar has signed an agreement with the Bangladesh government to design and develop a new city near Dhaka - Notun Dhaka (New Dhaka).
Sahara Matribhumi Unnayan Corporation has signed a memorandum of understanding with the Bangladesh government to build affordable housing for low income groups with housing finance support and also design- and plan-integrated satellite townships under the ministry of housing & public works (MOHPW) of the Bangladesh government.
Sahara India Pariwar managing worker and chairman Subrata Roy, who met Bangladesh PM Sheikh Hasina, has sought easing of norms on home finance and also suggested changes in tax rules.
In a statement, Sahara said the emphasis will be on development of infrastructure in the proposed townships. "The newly formed company 'Sahara Matribhumi Unnayan Corporation Ltd's plans are to build integrated and satellite townships which will be heavily intensive on infrastructure unlike regional real estate projects," Sahara said in a statement.
During his meetings with Bangladesh central bank governor Atiur Rahman and executive chairman of Board of Investments S A Samad, Roy suggested that a classification of a section be created midway between housing and infrastructure so that the taxation policy is relooked at in Bangladesh, the statement added.
Sahara Matribhumi Unnayan Corporation has signed a memorandum of understanding with the Bangladesh government to build affordable housing for low income groups with housing finance support and also design- and plan-integrated satellite townships under the ministry of housing & public works (MOHPW) of the Bangladesh government.
Sahara India Pariwar managing worker and chairman Subrata Roy, who met Bangladesh PM Sheikh Hasina, has sought easing of norms on home finance and also suggested changes in tax rules.
In a statement, Sahara said the emphasis will be on development of infrastructure in the proposed townships. "The newly formed company 'Sahara Matribhumi Unnayan Corporation Ltd's plans are to build integrated and satellite townships which will be heavily intensive on infrastructure unlike regional real estate projects," Sahara said in a statement.
During his meetings with Bangladesh central bank governor Atiur Rahman and executive chairman of Board of Investments S A Samad, Roy suggested that a classification of a section be created midway between housing and infrastructure so that the taxation policy is relooked at in Bangladesh, the statement added.
Centre promoting pharma cluster in coastal AP
Hyderabad: The Centre is promoting a pharma cluster with an investment of Rs 66.16 crore at the PCPIR in coastal Andhra Pradesh.
The PCPIR (Petroleum, Chemicals, Petrochemical Investment Region) covers East Godavari and Visakhapatnam districts. Andhra Pradesh ranks first in the manufacture of bulk drugs and hence there is a need to push further, said Mr M. Gopinath, Regional Joint Director General of Foreign Trade.
The state ranks third in formulations. It accounts for 40 per cent of the country’s total bulk drugs production and 50 per cent of the bulk drug exports, he said here at a business networking meet on `ChemTech World Expo 2013’.
Pharma sector sales
The country’s pharmaceutical sector is gaining a global position. The domestic pharma sector sales is expected to touch $74 billion by 2020 from the current $11 billion, according to research reports.
Drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth $9,173.50 million between April 2000 to February 2012.
The meet was organised by Jessubhai Media in association with the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
Mr Devendra Surana of FAPCCI said Andhra Pradesh is a hub for pharma and biotech companies because of a large number of research institutes. It has managed to draw several international and domestic companies to set up their base.
The PCPIR (Petroleum, Chemicals, Petrochemical Investment Region) covers East Godavari and Visakhapatnam districts. Andhra Pradesh ranks first in the manufacture of bulk drugs and hence there is a need to push further, said Mr M. Gopinath, Regional Joint Director General of Foreign Trade.
The state ranks third in formulations. It accounts for 40 per cent of the country’s total bulk drugs production and 50 per cent of the bulk drug exports, he said here at a business networking meet on `ChemTech World Expo 2013’.
Pharma sector sales
The country’s pharmaceutical sector is gaining a global position. The domestic pharma sector sales is expected to touch $74 billion by 2020 from the current $11 billion, according to research reports.
Drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth $9,173.50 million between April 2000 to February 2012.
The meet was organised by Jessubhai Media in association with the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
Mr Devendra Surana of FAPCCI said Andhra Pradesh is a hub for pharma and biotech companies because of a large number of research institutes. It has managed to draw several international and domestic companies to set up their base.
Irda caps commission on limited-tenure policies
Mumbai: The insurance regulator has capped the agents’ commission paid by insurers for selling policies with limited premium payment tenure.
The Insurance Regulatory and Development Authority (Irda) said commission paid by insurers to agents selling policies with limited paying tenure should be 10-25 per cent of the first-year premium. The regulator specified the rate of renewal commission for such plans, where the premium paying tenure is lower than the policy term. The move is to discourage policies with limited tenure.
This is the first time the insurance regulator has capped the commission on traditional plans, which include endowment, money-back and term assurance plans. According to the Insurance Act, an insurance company less than 10 years old can pay up to 40 per cent of the premium as commission in the first year to an agent on traditional policies. Companies more than 10 years have first-year commission capped at 35 per cent.
In a recent communication to insurers, Irda has specified the first-year commission would be capped at 10 per cent for policies with a tenure between five and nine years. For the remaining term, the maximum commission payout would be capped at five per cent. For policies with a 10-14-year tenures, the maximum commission would be 20 per cent for the first year, 7.5 per cent for the second and third years and five per cent for the remaining term.
For policies with more than 15 years’ tenure, the regulator has suggested insurers offer a commission of 25 per cent for the first year, 7.5 per cent for second and third years, and five per cent thereafter. Earlier, a renewal commission was not specified by the regulator.
Irda has also mandated that any policy should have a minimum payment tenure of five years. “As insurance is a long-term savings product, the regulator is discouraging products with smaller tenure. Some insurers were giving as high as 35 per cent commission for policies with five-year tenure. Now for shorter tenure policies, the regulator has prescribed lower commission. This would act as a disincentive for agents,” said a senior official at a private life insurance company.
In September 2010, Irda capped charges and commissions on unit-linked products (ulips). As a result, the average commission in ulips as a percentage to premiums collected fell to four per cent in 2011-12, from nearly 10 per cent in 2009-10. Whereas, the average commission in traditional plans as a percentage to premium, which was 8.5 per cent in 2009-10 for the private sector; increased to 12.5 per cent in 2011-12.
“While the average first-year commissions in ulip has shrunk to five to eight per cent because of the cap in commissions, in traditional plans it can go up to 40 per cent. Hence, agents were also pushing traditional plans,” said another insurance official.
During 2011-12, life insurance industry’s policy issuance was down by eight per cent, whereas for the whole private players industry it was down by 24 per cent. As a result the first-year premium collection of life insurers, was down by nine per cent to Rs 1,14,233 crore against Rs 1,25,826 crore in the corresponding period last year. Traditional policies accounted for roughly 60 per cent of the premium.
The Insurance Regulatory and Development Authority (Irda) said commission paid by insurers to agents selling policies with limited paying tenure should be 10-25 per cent of the first-year premium. The regulator specified the rate of renewal commission for such plans, where the premium paying tenure is lower than the policy term. The move is to discourage policies with limited tenure.
This is the first time the insurance regulator has capped the commission on traditional plans, which include endowment, money-back and term assurance plans. According to the Insurance Act, an insurance company less than 10 years old can pay up to 40 per cent of the premium as commission in the first year to an agent on traditional policies. Companies more than 10 years have first-year commission capped at 35 per cent.
In a recent communication to insurers, Irda has specified the first-year commission would be capped at 10 per cent for policies with a tenure between five and nine years. For the remaining term, the maximum commission payout would be capped at five per cent. For policies with a 10-14-year tenures, the maximum commission would be 20 per cent for the first year, 7.5 per cent for the second and third years and five per cent for the remaining term.
For policies with more than 15 years’ tenure, the regulator has suggested insurers offer a commission of 25 per cent for the first year, 7.5 per cent for second and third years, and five per cent thereafter. Earlier, a renewal commission was not specified by the regulator.
Irda has also mandated that any policy should have a minimum payment tenure of five years. “As insurance is a long-term savings product, the regulator is discouraging products with smaller tenure. Some insurers were giving as high as 35 per cent commission for policies with five-year tenure. Now for shorter tenure policies, the regulator has prescribed lower commission. This would act as a disincentive for agents,” said a senior official at a private life insurance company.
In September 2010, Irda capped charges and commissions on unit-linked products (ulips). As a result, the average commission in ulips as a percentage to premiums collected fell to four per cent in 2011-12, from nearly 10 per cent in 2009-10. Whereas, the average commission in traditional plans as a percentage to premium, which was 8.5 per cent in 2009-10 for the private sector; increased to 12.5 per cent in 2011-12.
“While the average first-year commissions in ulip has shrunk to five to eight per cent because of the cap in commissions, in traditional plans it can go up to 40 per cent. Hence, agents were also pushing traditional plans,” said another insurance official.
During 2011-12, life insurance industry’s policy issuance was down by eight per cent, whereas for the whole private players industry it was down by 24 per cent. As a result the first-year premium collection of life insurers, was down by nine per cent to Rs 1,14,233 crore against Rs 1,25,826 crore in the corresponding period last year. Traditional policies accounted for roughly 60 per cent of the premium.
Friday, May 25, 2012
Microsoft gets the Indian developer community ready for Windows 8
umbai: Over 200 hundred developers from across India have camped up for two days at a hotel in south Mumbai for a Windows 8 hackathon. This is the first time that the Indian developer community is getting into the hack mode for Microsoft Windows.
Hackathon, or codefest, is an event in which computer programmers and others in the field of software development, like graphic designers, interface designers and project managers, collaborate intensively on software-related projects.
With Microsoft Corp geared to launch its cloud-connected Windows 8 later this year, the US-based software developer is making sure that the developer community is ready with applications (apps) for the platform.
“India is an incredible bastion of software developers. On a global scale about 25-30 per cent of all the software codes written in the world are written by Indian developers (based out in India and abroad). Certainly galvanising the developer community in India to see the possibility and re-imagine Windows 8 and build next generation businesses is important,” said Steve Ballmer, chief executive officer (CEO) of Microsoft, via a video conference at the Microsoft India Technology Summit.
Atul Gupta, an individual application developer who has been coding for the last 16-17 hours, is elated with his experience on Windows 8. “This is my first time that I have attended a hackathon and the experience was awesome. The application that I developed is consumer oriented,” said Gupta.
But some of the app developers, who are active on the Android and Apple platforms, are yet to test the Windows 8 platform. “We do not see any immediate reason to be part of the Windows 8 environment. What matters is the actual number of people using handset on that platform, as of now they are very small. Besides the Android base is just growing fast,” said Sagar Bedmutha, founder CEO of Optinno Mobitech.
The company has been developing apps for Research in Motion’s (RIM) BlackBerry smartphones and the Android platform.
Noida based OnGraph Technologies is yet another app developer that is staying away from the Windows 8 platform. “Our issue with Windows is that it is not an open source system. Hence, we prefer Android,” said Nikhil Verma, business development manager, OnGraph.
For Microsoft, getting the developer support from India and APAC (Asia Pacific region) will be significant as the region has several hundreds of companies creating application for the Android, Apple and RIM platforms. “For Microsoft, this is crucial as they need to create a market. There is no dispute that Windows has a huge base in the enterprise segment but that’s not the case in the handset and tablet segments. And these are two areas that are growing exponentially,” said an analyst who did not want to be identified.
Ballmer also reiterated that the launch of Windows 8 is a “rebirth” of the company. “While Windows 7 was one of the best products, with Windows 8 we are re-imagining Windows from ground up,” he said.
Agrees Alok Shende, principal analyst, Ascentius Consulting: “For Microsoft Windows 8 is one of the most important product. The company has a dominant position in the desktop environment, the challenge will be in the mobile category. With Blackberry losing sheen in the enterprise segment perhaps Microsoft can address that market too. But consumers already have too much to choose from,” added Shende.
Vishal Tripathi, principal research analyst, Gartner, believes that Windows 8 has its benefits as security, application store and delivery models and app contracts. It will also support broader devices where users can have same seamless experience on tablet, Phone and PC. “But one of the challenges for Windows 8 is the Metro UI. While they have developed plenty of desktop applications but the catalogue of Metro is limited. Though Microsoft is encouraging developers to build applications and apps acquired through the app store are free for a limited time. In India Windows 8 adoption will face some resistance enterprise who have recently migrated to Windows7 so moving to to a new platform is a huge cost in terms of license, manpower, application testing etc. The change in OS in the enterprise environment happens every three to four years in India and in case of small businesses perhaps up to five to years. It might make sense of companies who are still on XP to move to Windows 8,” said Tripathi.
IIFT signs MOU with Singapore Management University on training and research programs
Kolkata: The Indian Institute of Foreign Trade (IIFT) and Singapore Management University ( SMU) have signed an MoU to collaborate on conducting training programs and research relating to international trade and business from an Asian perspective.
Under the partnership, the two institutions will jointly design and launch management development programs as well as offer postgraduate certificate programs in areas related to international trade, business and management.
Both parties also agreed to conduct joint research, case writing in the area of international trade and business, especially related to the Asian region. The MoU also covers student exchanges between the two institutions.
"With the shift in growth and centre of economic gravity towards emerging economies in Asia, it is becoming increasingly important for international trade professionals to be trained both inside and outside India to take full advantage of India's business opportunities. That Singapore is a trading and logistics hub, as well as a major financial centre in the region makes the SMU-IIFT or Singapore-Delhi educational axis a good mechanism for fostering both education and trade," said Professor Srivastava, SMU's provost and deputy president (academic affairs) in a statement.
IIFT director K. T. Chacko said, "The joining of hands between Singapore Management University and the Indian Institute of Foreign Trade, India would go a long way in enriching the research and collaborative educational programmes. SMU's academic strength and in depth understanding of South East Asia and IIFT's core strength in International Business will prove a win-win situation for both."
India's first solar Renewable Energy Certificates issued, to MandB Switchgear
Chennai: The country’s first solar ‘Renewable Energy Certificates’ were issued today.
NSE and BSE-listed M and B Switchgear Ltd was issued 249 RECs by the National Load Despatch Centre in New Delhi.
RECs are generation-based ‘certificates’ awarded (electronically, in demat form) to those generating electricity from renewable sources such as wind, biomass, hydro and solar, if they opt not to sell the electricity at a preferentially higher tariff.
These certificates are tradeable on the power exchanges and are bought by ‘obligated entities’ that are either specified consumers or electricity distribution companies. These obligated entities may be required to purchase a certain quantum of either green power or RECs.
The obligations are split into non-solar and solar — which means the obligated entities have to purchase either power from solar power projects or RECs generated by them.
M and B Switchgear, headquartered in Indore, is a manufacturer of transformers. In 2010-11, the company’s turnover was Rs 37 crore on which it made a net profit of Rs 77 lakh. For the first nine months of 2011-12, its turnover was Rs 18 crore, and net profit, Rs 32 lakh. M and B’s shares closed on the CSE on Wednesday at Rs 76.85.
The company also has a 2 MW solar photovoltaic power plant. In 2012-13, this plant is expected to generate close to 3,250 RECs, says Mr Vishal Pandya, Director, REConnect, M and B Switchgear’s consultants for REC-related matters.
The government fixes the floor and ceiling prices of RECs for a specified period. The minimum and maximum prices for solar RECs for 2012-17 are Rs 9,300 and Rs 13,400 respectively. Therefore, if M and B’s solar plant generates 3,250 RECs, the company could be richer by anywhere between Rs 3 crore and Rs 4.35 crore.
Getting the certificates is a two-step process — first ‘registration’ with the state load despatch centre and then ‘accreditation’ by NLDC. While M and B Switchgear is the only one to be accredited so far, four other solar power developers have been registered for RECs. They are: Jain Irrigation – 8.5 MW Maharashtra; Kanoria Chemicals – 5 MW, Rajasthan; Gupta Suns – 0.5 MW, Madhya Pradesh; and Numeric Power Systems – 1.0555 MW, Tamil Nadu, according to information provided by REConnect.
Japan likes to be a partner in national manufacturing policy: JETRO India chief
New Delhi: Japan wants to be a partner while rolling out India's national manufacturing policy which aims at creating 100 million jobs and enhancing the country's share in the GDP to 25 per cent in 10 years.
Japan External Trade Organization ( JETRO), an arm of the ministry of economy, trade and commerce is likely to propose to Indian government that Japan should be declared a partner country while promoting India's manufacturing policy.
N Noguchi, JETRO's chief director general in India told ET that most of 820 Japanese companies which are active in India are in manufacturing sector, and many more such companies are willing to shift their bases to India. Hit by economic downturn, the Japanese market is shrinking every day and most of the Japanese companies want to shift bases outside the country.
"After the disastrous flood in Thailand last year, many Japanese companies realized they should not concentrate their manufacturing centers only in one place. They want to set up manufacturing facilities in India so as to minimize risks", Noguchi said.
Noguchi who had an earlier innings in India between 2005 and 2010, said many Japanese companies were also enthused by the success story of the newly developed Neemrana industrial area in Rajasthan. Over 30 Japanese companies including Daikin Air-conditioning, Nissin Brake, Mitsui Chemical etc. are setting up their plants in Neemrana area.
"Japanese companies are already contributing to manufacturing sector in India. But if we officially partner with India's national manufacturing policy, the process will get a momentum," said Noguchi.
Japan External Trade Organization ( JETRO), an arm of the ministry of economy, trade and commerce is likely to propose to Indian government that Japan should be declared a partner country while promoting India's manufacturing policy.
N Noguchi, JETRO's chief director general in India told ET that most of 820 Japanese companies which are active in India are in manufacturing sector, and many more such companies are willing to shift their bases to India. Hit by economic downturn, the Japanese market is shrinking every day and most of the Japanese companies want to shift bases outside the country.
"After the disastrous flood in Thailand last year, many Japanese companies realized they should not concentrate their manufacturing centers only in one place. They want to set up manufacturing facilities in India so as to minimize risks", Noguchi said.
Noguchi who had an earlier innings in India between 2005 and 2010, said many Japanese companies were also enthused by the success story of the newly developed Neemrana industrial area in Rajasthan. Over 30 Japanese companies including Daikin Air-conditioning, Nissin Brake, Mitsui Chemical etc. are setting up their plants in Neemrana area.
"Japanese companies are already contributing to manufacturing sector in India. But if we officially partner with India's national manufacturing policy, the process will get a momentum," said Noguchi.
Thursday, May 24, 2012
Consumption market to grow by Rs 110 trillion: Kotak Institutional Equities report
Mumbai: The Indian consumption market will grow two-and-a-half times by 2025, to Rs110 tn from Rs43 tn in FY 2010, according to a Kotak Institutional Equities report.
More Indians will have a pocketful of money and a long shopping list, spending disproportionately on leisure, hotels, housing, household goods, healthcare and more, but less on bare necessities and staples, as a proportion of consumption.
The study classifies households into: Real-rich, Upper class, Prospering, Evolving, Emerging and Surviving.
Prosperity changes spend trends according to the report. With increased prosperity, societies spend less on staples and increase discretionary spends as a percentage of their expenditure. By 2025E the Indian consumption market will be two-and-a-half times bigger than it is today.
The top three classes will account for about half the consumption, from less than a third currently and the Surviving class will emerge from a base of deprivation. Over our forecast period, we model consumption at 59-62% of GDP and assume long-term real growth of 7% on a population increase of 1% a year.
The urban market will account for more than 55% of the consumption market by FY2025E from less than half today and urban households will account for about 40% of the total number of households, up from 30% currently.
The push towards urbanization will not come from an overspill into metros, but development of tier-II and tier-III cities. The emergence of growth hubs can offer stability to the growth story, the report says.
More Indians will have a pocketful of money and a long shopping list, spending disproportionately on leisure, hotels, housing, household goods, healthcare and more, but less on bare necessities and staples, as a proportion of consumption.
The study classifies households into: Real-rich, Upper class, Prospering, Evolving, Emerging and Surviving.
Prosperity changes spend trends according to the report. With increased prosperity, societies spend less on staples and increase discretionary spends as a percentage of their expenditure. By 2025E the Indian consumption market will be two-and-a-half times bigger than it is today.
The top three classes will account for about half the consumption, from less than a third currently and the Surviving class will emerge from a base of deprivation. Over our forecast period, we model consumption at 59-62% of GDP and assume long-term real growth of 7% on a population increase of 1% a year.
The urban market will account for more than 55% of the consumption market by FY2025E from less than half today and urban households will account for about 40% of the total number of households, up from 30% currently.
The push towards urbanization will not come from an overspill into metros, but development of tier-II and tier-III cities. The emergence of growth hubs can offer stability to the growth story, the report says.
Kalyani Steel's Rs 12,000-cr project among 31 plans cleared
Bangalore: Karnataka's state high-level clearance committee (SHLCC) on Wednesday cleared Kalyani Steel's Rs 12,000 crore carbon alloy steel project and JK Cement's Ltd's Rs 2,327 crore new cement plant at its meeting.
A total of 31 projects worth over Rs 1,46,656 crore were cleared by the SHLCC, which was chaired by the Chief Minister, Mr D.V. Sadananda Gowda. These projects will lead to over three lakh jobs in the state.
Prominent projects cleared today are: J K Cement Ltd proposal to set up a plant to produce ordinary Portland cement (OPC), Portland Pozzolana cement (PPC), Portland slag cement (PSC) at Chitapur in Gulbarga district with an investment of Rs 2,326.65 crore.
Shivashankar Minerals Ltd proposes to set up 3.5 million tonne cement plant at Chincholi in Gulbarga with an investment of Rs 2,250 crore.
BMM Isapt plans to set up 3 MW gas-based integrated iron and steel plant at Dhanapura Village, Mariiyammanahalli Hobli, Hospet Taluk, Bellary District at a cost of Rs 16,229.68 crore.
Kalyani Steel Ltd plans to set up plant to make carbon alloy steel and stainless steel at Yadgir district with an investment of Rs 12,000 crore.
Atria Power Corporation, with an investment of Rs 4,905 crore, is planning to set up a 5 MW mega solar thermal power units spread over 75 taluks in 13 districts in the state.
Sun Forest City Ventures Ltd is planning to build Project Vayu – which will offer a complete ecosystem for aerospace industries in Bangalore Aerospace Park near Bangalore International Airport Ltd (BIAL) at Devanahalli.
The project will involve an investment of Rs 9,394 crore.
The project will be executed in three phases, spread over 12 years and is likely to offer employment to 2.42 lakh people.
According to the current status, there are 39 projects which have been implemented since the last Globla Investors Meet held in 2010 and involve a total investment of Rs 5,370 crore.
About 277 projects are in the various stages of implementation with an investment of Rs 2.94 lakh crore.
SHLCC meet was also attended by the Industries Minister, Mr Murugesh Nirani; the Chief Secretary, Mr Ranganath; the Principal Secretary, Mr K. Jyothiramalingam; and the Commissioner, Industries Department, Mr Maheshwar Rao.
A total of 31 projects worth over Rs 1,46,656 crore were cleared by the SHLCC, which was chaired by the Chief Minister, Mr D.V. Sadananda Gowda. These projects will lead to over three lakh jobs in the state.
Prominent projects cleared today are: J K Cement Ltd proposal to set up a plant to produce ordinary Portland cement (OPC), Portland Pozzolana cement (PPC), Portland slag cement (PSC) at Chitapur in Gulbarga district with an investment of Rs 2,326.65 crore.
Shivashankar Minerals Ltd proposes to set up 3.5 million tonne cement plant at Chincholi in Gulbarga with an investment of Rs 2,250 crore.
BMM Isapt plans to set up 3 MW gas-based integrated iron and steel plant at Dhanapura Village, Mariiyammanahalli Hobli, Hospet Taluk, Bellary District at a cost of Rs 16,229.68 crore.
Kalyani Steel Ltd plans to set up plant to make carbon alloy steel and stainless steel at Yadgir district with an investment of Rs 12,000 crore.
Atria Power Corporation, with an investment of Rs 4,905 crore, is planning to set up a 5 MW mega solar thermal power units spread over 75 taluks in 13 districts in the state.
Sun Forest City Ventures Ltd is planning to build Project Vayu – which will offer a complete ecosystem for aerospace industries in Bangalore Aerospace Park near Bangalore International Airport Ltd (BIAL) at Devanahalli.
The project will involve an investment of Rs 9,394 crore.
The project will be executed in three phases, spread over 12 years and is likely to offer employment to 2.42 lakh people.
According to the current status, there are 39 projects which have been implemented since the last Globla Investors Meet held in 2010 and involve a total investment of Rs 5,370 crore.
About 277 projects are in the various stages of implementation with an investment of Rs 2.94 lakh crore.
SHLCC meet was also attended by the Industries Minister, Mr Murugesh Nirani; the Chief Secretary, Mr Ranganath; the Principal Secretary, Mr K. Jyothiramalingam; and the Commissioner, Industries Department, Mr Maheshwar Rao.
Fiat signs MoU with Mazda Motor Corporation for development and manufacturing of new roadster
Mumbai: Italian auto major Fiat and Mazda Motor Corporation have signed a non-binding Memorandum of Understanding for the development and manufacturing of a new roadster for the Mazda and Alfa Romeo marques based on Mazda's next-generation MX-5 rear-wheel-drive architecture.
The study calls for both Fiat and Mazda to develop two differentiated, distinctly styled, brand-specific light weight, roadsters featuring rear-wheel drive. The Alfa Romeo and Mazda variants will each be powered by specific proprietary engines unique to each brand.
The project assumption is that both vehicles will be manufactured at Mazda's Hiroshima, Japan, plant with production for Alfa Romeo envisaged starting in 2015.
"Establishing technology and product development alliances is one of Mazda's corporate objectives and this announcement with Fiat is an important first step in that direction. It is especially exciting to be collaborating with such a prestigious marque as Alfa Romeo on a new roadster based on the next-generation MX-5, which is such an iconic vehicle for Mazda and recognized as the best-selling roadster of all time." said Takashi Yamanouchi, Mazda's Representative Director and Chairman of the Board, President and CEO.
"This agreement clearly demonstrates our commitment to Alfa Romeo and the determination to grow it into a truly global brand. By partnering with Mazda, we will be co-operating with the recognized leader in compact rear-drive vehicle architectures in order to deliver an exciting and stylish roadster in the Alfa Romeo tradition,." said Fiat CEO Sergio Marchionne.
The Final Agreement is expected be signed in the second-half of 2012. Fiat and Mazda have also agreed to discuss further opportunities for co-operation in Europe and other emerging markets, industry experts said.
The study calls for both Fiat and Mazda to develop two differentiated, distinctly styled, brand-specific light weight, roadsters featuring rear-wheel drive. The Alfa Romeo and Mazda variants will each be powered by specific proprietary engines unique to each brand.
The project assumption is that both vehicles will be manufactured at Mazda's Hiroshima, Japan, plant with production for Alfa Romeo envisaged starting in 2015.
"Establishing technology and product development alliances is one of Mazda's corporate objectives and this announcement with Fiat is an important first step in that direction. It is especially exciting to be collaborating with such a prestigious marque as Alfa Romeo on a new roadster based on the next-generation MX-5, which is such an iconic vehicle for Mazda and recognized as the best-selling roadster of all time." said Takashi Yamanouchi, Mazda's Representative Director and Chairman of the Board, President and CEO.
"This agreement clearly demonstrates our commitment to Alfa Romeo and the determination to grow it into a truly global brand. By partnering with Mazda, we will be co-operating with the recognized leader in compact rear-drive vehicle architectures in order to deliver an exciting and stylish roadster in the Alfa Romeo tradition,." said Fiat CEO Sergio Marchionne.
The Final Agreement is expected be signed in the second-half of 2012. Fiat and Mazda have also agreed to discuss further opportunities for co-operation in Europe and other emerging markets, industry experts said.
EU to invest Rs 42 cr in skills development project in India
New Delhi: The European Union and India joined hands to launch a skill development project in India on Wednesday, towards which EU will invest €6 million over the next four- and-a-half years.
Emphasising the need for such a project, the Ambassador of EU, Dr João Cravinho, said that by 2020 the world is likely to face a shortfall of 47 million skilled workers, while India is estimated to have a surplus of 56 million workers.
“For India to realise the demographic dividend, the young people need to be properly skilled. If India achieves that there will be no stopping India in the 21st century,” he said.
This assistance from EU is part of the memorandum of understanding (MoU) signed by India and EU on exchange in the field on employment and social policy and for technical assistance n skills development.
Further, Dr Cravinho said that the India-EU partnership is at a moment of transformation. “Perhaps we are moving from a development assistance character in the past towards becoming partners,” he said.
The Indian government aims to skill 500 million workers by 2022.
“No country has taken up the task of skilling 500 million people in the span of six to seven years. This is an important partnership for India, said Mr Dilip Chenoy, Chief Executive Officer of the National Skill Development Corp.
He added that the focus will be on three segments — training and skilling the trainers for the project, developing the National Skills Qualification Framework and on the on developing a national information system for the labour market.
Emphasising the need for such a project, the Ambassador of EU, Dr João Cravinho, said that by 2020 the world is likely to face a shortfall of 47 million skilled workers, while India is estimated to have a surplus of 56 million workers.
“For India to realise the demographic dividend, the young people need to be properly skilled. If India achieves that there will be no stopping India in the 21st century,” he said.
This assistance from EU is part of the memorandum of understanding (MoU) signed by India and EU on exchange in the field on employment and social policy and for technical assistance n skills development.
Further, Dr Cravinho said that the India-EU partnership is at a moment of transformation. “Perhaps we are moving from a development assistance character in the past towards becoming partners,” he said.
The Indian government aims to skill 500 million workers by 2022.
“No country has taken up the task of skilling 500 million people in the span of six to seven years. This is an important partnership for India, said Mr Dilip Chenoy, Chief Executive Officer of the National Skill Development Corp.
He added that the focus will be on three segments — training and skilling the trainers for the project, developing the National Skills Qualification Framework and on the on developing a national information system for the labour market.
Tapi agreement set to expand India's gas basket
New Delhi: India on Wednesday signed the gas sale purchase agreement (GSPA) for the Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline, which upon completion would diversify its gas basket. With domestic gas output stagnating, the $7.6-billion Tapi gas project provides a ray of hope.
In five years, the country would have access to imported natural gas, in addition to imported liquefied natural gas and domestic sources, including coal bed methane gas.
However, despite the increased supply, prices would inch higher. Though Reliance Industries (RIL)’s gas price of $4.2 a million British thermal units (mBtu) is the current benchmark for domestic natural gas, it is due for revision in 2014. Petronet LNG (PLL), the only importer of long-term natural gas, would also see a price rise by its Qatari suppliers.
While the government statement did not mention the price at which gas would be imported, the landed price of gas would be cheaper than the import price of Qatari gas in 2018. Qatar’s RasGas charges 12.67 per cent of Japanese crude cocktail and Petronet pays an additional $0.26 per mBtu for shipping the gas in its liquid form from Qatar. This currently costs $8-10 per mBtu. “Different sources will come at different price, but the availability is important from a future perspective,” said Dilip Khanna, partner (oil & gas practice), Ernst & Young.
Securing gas from external sources has become crucial for India, as the nation faces a sharp rise in demand from sectors like power and fertilisers, while no major increase in domestic production is lined up. The $7.6-billion Tapi project envisages building 1,680 km of pipeline, with a total gas capacity of 90 million standard cubic metres per day (mscmd). Afghanistan and Pakistan have committed to the safety and security of the pipeline.
Of the 90 mscmd gas the pipeline would carry from Turkmenistan, Afghanistan would consume 14 mscmd, while India and Pakistan would account for 38 mscmd each. GAIL would import Turkmenistan gas for India, once the pipeline becomes operational in 2018. The gas would be supplied for a 30-year period.
The Indian market is eagerly awaiting the commissioning of the Tapi pipeline. India’s natural gas sector is projected to grow at a compounded annual growth rate of 19.5 per cent over the next five years. Consumption is expected to grow from the current 166.2 mscmd to 473 mscmd in 2017, Petroleum Minister Jaipal Reddy said at the GSPA signing ceremony in Turkmenistan.
Industry experts, however, say India should have negotiated for a higher quantity, considering the widening demand-supply gap. A K Balyan, managing director and chief executive, Petronet LNG, the country’s biggest gas importing company, said, “I think the country should have sought higher volumes. When it actually comes in the next five years or so, this quantity would be small to make a huge impact on the domestic gas availability. It does not impact companies like us. Considering the opportunities available, we welcome more pipelines and gas terminals.”
In five years, the country would have access to imported natural gas, in addition to imported liquefied natural gas and domestic sources, including coal bed methane gas.
However, despite the increased supply, prices would inch higher. Though Reliance Industries (RIL)’s gas price of $4.2 a million British thermal units (mBtu) is the current benchmark for domestic natural gas, it is due for revision in 2014. Petronet LNG (PLL), the only importer of long-term natural gas, would also see a price rise by its Qatari suppliers.
While the government statement did not mention the price at which gas would be imported, the landed price of gas would be cheaper than the import price of Qatari gas in 2018. Qatar’s RasGas charges 12.67 per cent of Japanese crude cocktail and Petronet pays an additional $0.26 per mBtu for shipping the gas in its liquid form from Qatar. This currently costs $8-10 per mBtu. “Different sources will come at different price, but the availability is important from a future perspective,” said Dilip Khanna, partner (oil & gas practice), Ernst & Young.
Securing gas from external sources has become crucial for India, as the nation faces a sharp rise in demand from sectors like power and fertilisers, while no major increase in domestic production is lined up. The $7.6-billion Tapi project envisages building 1,680 km of pipeline, with a total gas capacity of 90 million standard cubic metres per day (mscmd). Afghanistan and Pakistan have committed to the safety and security of the pipeline.
Of the 90 mscmd gas the pipeline would carry from Turkmenistan, Afghanistan would consume 14 mscmd, while India and Pakistan would account for 38 mscmd each. GAIL would import Turkmenistan gas for India, once the pipeline becomes operational in 2018. The gas would be supplied for a 30-year period.
The Indian market is eagerly awaiting the commissioning of the Tapi pipeline. India’s natural gas sector is projected to grow at a compounded annual growth rate of 19.5 per cent over the next five years. Consumption is expected to grow from the current 166.2 mscmd to 473 mscmd in 2017, Petroleum Minister Jaipal Reddy said at the GSPA signing ceremony in Turkmenistan.
Industry experts, however, say India should have negotiated for a higher quantity, considering the widening demand-supply gap. A K Balyan, managing director and chief executive, Petronet LNG, the country’s biggest gas importing company, said, “I think the country should have sought higher volumes. When it actually comes in the next five years or so, this quantity would be small to make a huge impact on the domestic gas availability. It does not impact companies like us. Considering the opportunities available, we welcome more pipelines and gas terminals.”
Wednesday, May 23, 2012
Nasscom to push industry's agenda with PMO
Thiruvananthapuram: An inter-ministerial forum has roped in National Association of Software and Service Companies (Nasscom) to push IT industry's case with the Prime Minister's Office.
The ministries involved are IT, Commerce and Finance, Mr V. K. Mathews, member of the Nasscom Executive Committee, told Business Line here.
The forum intends to take up with the PMO policy aspects with respect to taxation, policy and governance issues, Mr Mathews said.
He is also the executive chairman of the IBS group based here, which is a leading player in the global travel, transport and logistics sector.
“The forum has already met with the Prime Minister, and it has been getting positive vibes from the Government,” Mr Mathews said.
The forum intends to take up with the PMO and ministries concerned the need to increasingly implement the reform agenda in governance.
“There is a huge opportunity to tap from the glaring weaknesses in the system. Opportunities are abound in every sector where reforms have lagged.”
Mr Mathews described e-governance initiatives as a major enabler of result-oriented, transparent and accountable administration.
There would be regular interaction between the Nasscom and the ministries involved, and the PMO would be directly kept in the loop.
Mr Mathews said that the inter-ministerial forum would work on the lines of the Government of Kerala-Confederation of Indian Industry Consultative Forum (GCCF).
Chaired by the State Chief Secretary, it has principal secretaries on board, and meets once every two months to brainstorm on developmental and socio-economic issues.
The ministries involved are IT, Commerce and Finance, Mr V. K. Mathews, member of the Nasscom Executive Committee, told Business Line here.
The forum intends to take up with the PMO policy aspects with respect to taxation, policy and governance issues, Mr Mathews said.
He is also the executive chairman of the IBS group based here, which is a leading player in the global travel, transport and logistics sector.
“The forum has already met with the Prime Minister, and it has been getting positive vibes from the Government,” Mr Mathews said.
The forum intends to take up with the PMO and ministries concerned the need to increasingly implement the reform agenda in governance.
“There is a huge opportunity to tap from the glaring weaknesses in the system. Opportunities are abound in every sector where reforms have lagged.”
Mr Mathews described e-governance initiatives as a major enabler of result-oriented, transparent and accountable administration.
There would be regular interaction between the Nasscom and the ministries involved, and the PMO would be directly kept in the loop.
Mr Mathews said that the inter-ministerial forum would work on the lines of the Government of Kerala-Confederation of Indian Industry Consultative Forum (GCCF).
Chaired by the State Chief Secretary, it has principal secretaries on board, and meets once every two months to brainstorm on developmental and socio-economic issues.
Warburg Pincus leads $32 million investment in Quikr's parent company
Bangalore: Quickr, the internet and mobile based classified leader, on Tuesday announced that its parent received investment of $32 million ( Rs 176 crore) from a clutch of private equity investors.
Warburg Pincus has led this round of fund raising-- fifth and the largest for Quickr-- with participation from existing investors such as Matrix Partners India, Nowest Venture Partners and ebay Inc.,
Launched nearly two-and-a-half decades ago, Quickr helps people buy, sell and rent things in 165 categories across 83 cities in India. It's a wholly-owned subsidiary of Quickr Maurities Holding Pvt Ltd. The list of its investors include Matrix Partners India, Omidyar Network, Norwest Venture Partners, Nokia Growth Partners, Warburg and eBay Inc.
Pranay Chulet, co-founder and CEO, Quickr, said the company will use the money to diversify into online and mobile platforms, intensify product development and strengthen marketing capabilities.
Since its launch in 2008, Quikr has raised around $50 million in funding. Two other investors in the company, Nokia Growth Partners and Omidyar Networks, did not participate in this round.
Quikr, which was called Kijiji India, was launched in February 2008 as a partnership between eBay Inc and Matrix Partners. In August the same year it was spun out as a separate entity and re-launched as Quikr.
The company is an online marketplace for buyers and sellers to connect. However, transactions are concluded offline. The company claims to have 17 million unique users a month and lists advertisements across 165 categories in over 80 Indian cities.
Nitin Nayar, Warburg Pincus' Managing Director in India said it was the company's leadership position as an innovative online marketplace that resulted in the investment. "We look forward to working closely with the management team to build on the company's success and accelerate its growth plans," Nayar added.
The company is intending to strengthen its technology back-end. "We have grown very fast. We will aggressively invest in technology, product, team and marketing," said Chulet, adding that they will also invest in their mobile platform. In the past year, Quikr has paid greater attention to mobile users as well. CEO Chulet said they get around 5-10 million users through their mobile site, mobile app and sms.
Venture capital and private equity funds have been aggressively investing in internet-based companies. A number of these investments have been in the online commerce segment. Ascent Capital pumped in $10 million in online grocery shopping site Big Basket in February. The same month Tiger Global and Accel Partners put in $6 million in home and garden online retailer Zansaar. BrainBees Solutions, which runs baby-care portal First Cry and beauty and wellness retail site GoodLife, raised $14 million from IDG Ventures India and SAIF Partners.
In fact Quikr is also exploring the e-commerce segment. "We are in a sense the nursery of e-commerce in India. A number of mass market users who are not comfortable transacting online start with us and then graduate to e-commerce," said Chulet. "Pure play e-commerce is definitely on our radar."
The company is also looking at acquisitions to speed up growth. "We have a large platform with a large number of users. We will look at companies who can build more sophisticated plays on top of our platform," said Chulet, who declined to reveal revenue details.
Warburg Pincus has led this round of fund raising-- fifth and the largest for Quickr-- with participation from existing investors such as Matrix Partners India, Nowest Venture Partners and ebay Inc.,
Launched nearly two-and-a-half decades ago, Quickr helps people buy, sell and rent things in 165 categories across 83 cities in India. It's a wholly-owned subsidiary of Quickr Maurities Holding Pvt Ltd. The list of its investors include Matrix Partners India, Omidyar Network, Norwest Venture Partners, Nokia Growth Partners, Warburg and eBay Inc.
Pranay Chulet, co-founder and CEO, Quickr, said the company will use the money to diversify into online and mobile platforms, intensify product development and strengthen marketing capabilities.
Since its launch in 2008, Quikr has raised around $50 million in funding. Two other investors in the company, Nokia Growth Partners and Omidyar Networks, did not participate in this round.
Quikr, which was called Kijiji India, was launched in February 2008 as a partnership between eBay Inc and Matrix Partners. In August the same year it was spun out as a separate entity and re-launched as Quikr.
The company is an online marketplace for buyers and sellers to connect. However, transactions are concluded offline. The company claims to have 17 million unique users a month and lists advertisements across 165 categories in over 80 Indian cities.
Nitin Nayar, Warburg Pincus' Managing Director in India said it was the company's leadership position as an innovative online marketplace that resulted in the investment. "We look forward to working closely with the management team to build on the company's success and accelerate its growth plans," Nayar added.
The company is intending to strengthen its technology back-end. "We have grown very fast. We will aggressively invest in technology, product, team and marketing," said Chulet, adding that they will also invest in their mobile platform. In the past year, Quikr has paid greater attention to mobile users as well. CEO Chulet said they get around 5-10 million users through their mobile site, mobile app and sms.
Venture capital and private equity funds have been aggressively investing in internet-based companies. A number of these investments have been in the online commerce segment. Ascent Capital pumped in $10 million in online grocery shopping site Big Basket in February. The same month Tiger Global and Accel Partners put in $6 million in home and garden online retailer Zansaar. BrainBees Solutions, which runs baby-care portal First Cry and beauty and wellness retail site GoodLife, raised $14 million from IDG Ventures India and SAIF Partners.
In fact Quikr is also exploring the e-commerce segment. "We are in a sense the nursery of e-commerce in India. A number of mass market users who are not comfortable transacting online start with us and then graduate to e-commerce," said Chulet. "Pure play e-commerce is definitely on our radar."
The company is also looking at acquisitions to speed up growth. "We have a large platform with a large number of users. We will look at companies who can build more sophisticated plays on top of our platform," said Chulet, who declined to reveal revenue details.
Apollo Tyres invests $35 million in component preparation unit in South Africa
Kochi: As part of the efforts to strengthen its presence in South Africa, Apollo Tyres has installed a component preparation unit at Ladysmith tyre manufacturing facility in South Africa. The unit with a potential for further expansion to facilitate future growth has been installed at an investment of $35 million.
According to Apollo Tyres chairman Onkar S Kanwar the new unit will feed both the Durban and Ladysmith manufacturing units of the company in South Africa. This is expected to raise the commercial vehicle capacity at Durban by 20 % and the Ladysmith passenger vehicle and light truck tyre capacity by 30 %.
Since the acquisition of the former Dunlop Tyre facilities in South Africa, the company has invested $ 85 million for upgrading machinery and increasing manufacturing efficiencies in both plants.
The company plans to invest more in its units South Africa for expansion into the African continent despite challenges facing the tyre manufacturers in the country like high manufacturing and wage costs and the threat of cheaper imports.
According to Apollo Tyres chairman Onkar S Kanwar the new unit will feed both the Durban and Ladysmith manufacturing units of the company in South Africa. This is expected to raise the commercial vehicle capacity at Durban by 20 % and the Ladysmith passenger vehicle and light truck tyre capacity by 30 %.
Since the acquisition of the former Dunlop Tyre facilities in South Africa, the company has invested $ 85 million for upgrading machinery and increasing manufacturing efficiencies in both plants.
The company plans to invest more in its units South Africa for expansion into the African continent despite challenges facing the tyre manufacturers in the country like high manufacturing and wage costs and the threat of cheaper imports.
UK looking to invest in select sectors in Kerala
Thiruvananthapuram: The UK has expressed keen interest in some big ticket projects in the IT, healthcare, infrastructure and education sectors in the state.
Visiting British Deputy High Commissioner in Chennai Mr Mike Nithavrianakis conveyed this to Chief Minister Mr Ommen Chandy during a meeting here.
Sharing Profiles
The Deputy High Commissioner, who was accompanied by a team of officials, also promised to share project profiles with major companies in the UK.
Mr Nithavrianakis held a string of high-level meetings with senior officials here to discuss investment opportunities planned here in the core sectors.
The Kerala team apprised him of a number of major upcoming projects, including the NIMZ (national investment manufacturing zone) and development of minor ports. Opportunities in the higher education sector, LNG-based power plants and development of inland waterways were also discussed.
Mr V. Somasundaran, additional chief secretary (industries), said that plans were afoot to bring a ministerial-level representative from the UK.
Major Sectors
The UK is looking at sectors such as information technology, healthcare, infrastructure and education.
Incidentally, they are the core sectors of the ‘Emerging Kerala' global connect event, which is slated to be held in Kochi during September.
Visiting British Deputy High Commissioner in Chennai Mr Mike Nithavrianakis conveyed this to Chief Minister Mr Ommen Chandy during a meeting here.
Sharing Profiles
The Deputy High Commissioner, who was accompanied by a team of officials, also promised to share project profiles with major companies in the UK.
Mr Nithavrianakis held a string of high-level meetings with senior officials here to discuss investment opportunities planned here in the core sectors.
The Kerala team apprised him of a number of major upcoming projects, including the NIMZ (national investment manufacturing zone) and development of minor ports. Opportunities in the higher education sector, LNG-based power plants and development of inland waterways were also discussed.
Mr V. Somasundaran, additional chief secretary (industries), said that plans were afoot to bring a ministerial-level representative from the UK.
Major Sectors
The UK is looking at sectors such as information technology, healthcare, infrastructure and education.
Incidentally, they are the core sectors of the ‘Emerging Kerala' global connect event, which is slated to be held in Kochi during September.
India, Switzerland may conclude FTA by year-end
Hyderabad: The Free Trade Agreement between India and Switzerland is expected to be concluded by the end of 2012, Mr Rolf Frei, Consul General of Switzerland for India, said.
“Both the countries were keen on having the FTA at the earliest. The agreement will give a significant boost to bilateral trade between India and Switzerland,” he said at an interactive meeting on business opportunities in Switzerland, organised by the Federation of Andhra Pradesh Chamber of Commerce and Industry here.
Mr Frei said “despite the global economic slowdown, our trade graph has been looking upwards.”
The two-way trade expanded from $7 billion in 2005-06 to $35 billion in 2009-10, with India being one of the most important investment destinations for Switzerland.
Switzerland has always been amongst the top foreign investors in India. It stands at the eleventh position overall and sixth in Europe in terms of investments, with a cumulative FDI inflow of $1,804.63 million from April 2000 to December 2010.
The Swiss capital stock in India is estimated at $3.5 billion while Indian capital stock in Switzerland was in the range of $550 million.
Eurozone crisis
Referring to the eurozone crisis, Mr Frei said the economic situation had resulted in a drop in exports from Switzerland. But recession was less substantial in Switzerland than in Europe, he pointed out.
He said the areas where the two countries could engage in included infrastructure, clean-tech, lifesciences, automotive, food processing, retail and precision engineering.
Earlier, Mr Frei met with the Andhra Pradesh Minister for Major Industries, Dr J. Geetha Reddy.
He expressed interest in bringing a trade delegation from Switzerland to Andhra Pradesh to explore the possibilities of expanding trade ties, especially in sectors such as chemicals, petrochemicals, biotechnology, pharmaceuticals and food processing.
“Both the countries were keen on having the FTA at the earliest. The agreement will give a significant boost to bilateral trade between India and Switzerland,” he said at an interactive meeting on business opportunities in Switzerland, organised by the Federation of Andhra Pradesh Chamber of Commerce and Industry here.
Mr Frei said “despite the global economic slowdown, our trade graph has been looking upwards.”
The two-way trade expanded from $7 billion in 2005-06 to $35 billion in 2009-10, with India being one of the most important investment destinations for Switzerland.
Switzerland has always been amongst the top foreign investors in India. It stands at the eleventh position overall and sixth in Europe in terms of investments, with a cumulative FDI inflow of $1,804.63 million from April 2000 to December 2010.
The Swiss capital stock in India is estimated at $3.5 billion while Indian capital stock in Switzerland was in the range of $550 million.
Eurozone crisis
Referring to the eurozone crisis, Mr Frei said the economic situation had resulted in a drop in exports from Switzerland. But recession was less substantial in Switzerland than in Europe, he pointed out.
He said the areas where the two countries could engage in included infrastructure, clean-tech, lifesciences, automotive, food processing, retail and precision engineering.
Earlier, Mr Frei met with the Andhra Pradesh Minister for Major Industries, Dr J. Geetha Reddy.
He expressed interest in bringing a trade delegation from Switzerland to Andhra Pradesh to explore the possibilities of expanding trade ties, especially in sectors such as chemicals, petrochemicals, biotechnology, pharmaceuticals and food processing.
Tuesday, May 22, 2012
Gujarat tourism gets tech-savvy
Gandhinagar: The Tourism Corporation of Gujarat Limited (TCGL) is all set to provide not just better infrastructure facilities to those coming to the state, but has also decided to woo the tourists through internet and mobile services.
The tourism department has decided to have a 24x7 call centre, a mobile application and GIS mapping of the tourist destinations of the state to help the tourists get information about the destinations, facilities and hotels. It will also help them in arranging taxi services and online bookings.
The TCGL will provide the services through the Gujarat Info Petro Limited (GIPL). V K Sharma, the chief executive officer of GIPL said, "We are in the midst of developing the facilities for the Tourism Corporation of Gujarat and the facilities, if everything goes as per plan, will be launched next week."
Navjeet Khokhar, business development officer at GIPL, said that they have been given three projects by TCGL and all of them are in the last stages. These include a 24-hour helpline where the operator would give information based on the queries, while the second would be a website for online booking and the third a mobile application.
GIS and mobile applications: As soon as one enters Gujarat with a mobile number which is outside the Gujarat circle, he would be greeted by the Gujarat tourism department and will be prompted to download an application which would not only give directions within the state but would also facilitate him to book hotels and taxi from his mobile (using mobile internet) and even book hotels. The software will be different for iPhone, Android and Blackberry mobiles. The download would be free. Also there would be a link to download it directly from the TCGL website.
Call centre: GIPL will facilitate a five seated call centre exclusively for the TCGL. It will not only give information about the places to visit in the nearby areas, but will also suggest where to stay and will also help the person choose the hotel as per his choice. The call centre will help the person by giving him the taxi operator's number and the prevalent rate in the region. The operators at the centre will also design the package if the person was willing to give out his package. Information about the various modes of travel to the tourist destinations will also be given.
Website: The TCGL official website will not only provide pictures of the facilities at the tourist destination but will also facilitate online booking. This facility will be for the properties owned by the Tourism Corporation of Gujarat and for the other hoteliers at the tourist destination.
The tourism department has decided to have a 24x7 call centre, a mobile application and GIS mapping of the tourist destinations of the state to help the tourists get information about the destinations, facilities and hotels. It will also help them in arranging taxi services and online bookings.
The TCGL will provide the services through the Gujarat Info Petro Limited (GIPL). V K Sharma, the chief executive officer of GIPL said, "We are in the midst of developing the facilities for the Tourism Corporation of Gujarat and the facilities, if everything goes as per plan, will be launched next week."
Navjeet Khokhar, business development officer at GIPL, said that they have been given three projects by TCGL and all of them are in the last stages. These include a 24-hour helpline where the operator would give information based on the queries, while the second would be a website for online booking and the third a mobile application.
GIS and mobile applications: As soon as one enters Gujarat with a mobile number which is outside the Gujarat circle, he would be greeted by the Gujarat tourism department and will be prompted to download an application which would not only give directions within the state but would also facilitate him to book hotels and taxi from his mobile (using mobile internet) and even book hotels. The software will be different for iPhone, Android and Blackberry mobiles. The download would be free. Also there would be a link to download it directly from the TCGL website.
Call centre: GIPL will facilitate a five seated call centre exclusively for the TCGL. It will not only give information about the places to visit in the nearby areas, but will also suggest where to stay and will also help the person choose the hotel as per his choice. The call centre will help the person by giving him the taxi operator's number and the prevalent rate in the region. The operators at the centre will also design the package if the person was willing to give out his package. Information about the various modes of travel to the tourist destinations will also be given.
Website: The TCGL official website will not only provide pictures of the facilities at the tourist destination but will also facilitate online booking. This facility will be for the properties owned by the Tourism Corporation of Gujarat and for the other hoteliers at the tourist destination.
Dr Reddy's launches Lansoprazole capsules in US
Hyderabad: Pharma major Dr Reddy’s Laboratories has launched over-the-counter Lansoprazole delayed-release capsules in the US market.
The Hyderabad-based company will market the product under store brand labels in the US market.
The product is the bioequivalent version of Novartis Consumer Health’s Prevacid 24 HR capsule. It had brand sales of approximately $115 million in the 12 months ending March 31, 2012, according to market estimates.
The tablets are generally indicated for treating rheumatoid arthritis and osteoarthritis.
The Hyderabad-based company will market the product under store brand labels in the US market.
The product is the bioequivalent version of Novartis Consumer Health’s Prevacid 24 HR capsule. It had brand sales of approximately $115 million in the 12 months ending March 31, 2012, according to market estimates.
The tablets are generally indicated for treating rheumatoid arthritis and osteoarthritis.
Fairbridge to buy Thomas Cook's stake in India operations for Rs 817 cr
Mumbai: Fairbridge Capital (Mauritius) will buy 77 per cent of Thomas Cook Group’s stake in its India operations for Rs 817.4 crore.
Fairbridge is a subsidiary of Fairfax Financial Holdings.
The agreement for sale was reached following an auction process, Thomas Cook said.
In a filing to the stock exchanges, Thomas Cook India said the agreed price is equivalent to Rs 50 per share which represents an 11 per cent premium to the market price immediately prior to announcement of the auction process.
Thomas Cook Group will grant Fairbridge licence over the Thomas Cook brand for 12.5 years in the countries in which Thomas Cook India operates.
The sale is subject to shareholders and regulatory approvals. It is expected to be completed in the current fiscal.
Fairbridge is a subsidiary of Fairfax Financial Holdings.
The agreement for sale was reached following an auction process, Thomas Cook said.
In a filing to the stock exchanges, Thomas Cook India said the agreed price is equivalent to Rs 50 per share which represents an 11 per cent premium to the market price immediately prior to announcement of the auction process.
Thomas Cook Group will grant Fairbridge licence over the Thomas Cook brand for 12.5 years in the countries in which Thomas Cook India operates.
The sale is subject to shareholders and regulatory approvals. It is expected to be completed in the current fiscal.
Essar Oil - L&T sign MoU for bitumen supply
Mumbai: Essar Oil, amongst India's top private sector refiners, and Larsen & Toubro (L&T), amongst India's top engineering and construction companies, have signed a Memorandum of Understanding (MoU) for supplies of high quality bitumen for key infrastructure projects in Gujarat undertaken by the engineering giant.
The initial supply agreement is for a quantity of 15,000 metric tonnes over the course of the project and is likely to be extended to other projects in and around the state.
Essar Oil will provide supplies for the Kandla - Mundra Road Project (KMRP) and the Samakhaiyali - Gandhidham Road Project (SGRP), both in the state of Gujarat from its state-of-the-art refinery in Vadinar. This cooperation will soon be extended to projects like the Kishangarh - Udaipur - Ahmedabad Road Project, among others.
Essar Oil has existing relationship with L&T under which it supplied about 60,000 metric tonnes of high quality bitumen over the last 18 months for L&T's various road projects.
The new MoA is over and above that quantity. Essar Oil will ensure availability of quality product for the projects and the relationship with L&T will open up avenues for sales of its refinery product.
"We are happy to be associated with L&T and in essence be a part of the infrastructure development of the country. Essar Oil is fully geared to meet the supply for increased demand of high quality bitumen for road construction," said Mr. S. Thangapandian, CEO - Marketing, Essar Oil.
The initial supply agreement is for a quantity of 15,000 metric tonnes over the course of the project and is likely to be extended to other projects in and around the state.
Essar Oil will provide supplies for the Kandla - Mundra Road Project (KMRP) and the Samakhaiyali - Gandhidham Road Project (SGRP), both in the state of Gujarat from its state-of-the-art refinery in Vadinar. This cooperation will soon be extended to projects like the Kishangarh - Udaipur - Ahmedabad Road Project, among others.
Essar Oil has existing relationship with L&T under which it supplied about 60,000 metric tonnes of high quality bitumen over the last 18 months for L&T's various road projects.
The new MoA is over and above that quantity. Essar Oil will ensure availability of quality product for the projects and the relationship with L&T will open up avenues for sales of its refinery product.
"We are happy to be associated with L&T and in essence be a part of the infrastructure development of the country. Essar Oil is fully geared to meet the supply for increased demand of high quality bitumen for road construction," said Mr. S. Thangapandian, CEO - Marketing, Essar Oil.
After Stockholm, Mumbai is most liveable city: Survey
Coimbatore: Mumbai has emerged as the second-most liveable city in the world, according to an Ericsson ConsumerLab survey. The liveability factor has been tied to connectivity. Stockholm topped the list.
India's business capital has in the survey outranked cities such as New York, London and Los Angeles.
The 30-minute online survey (with 1,500 participants per city) was carried out in Cairo, Johannesburg, Mumbai, Stockholm, Beijing, Moscow, Sao Paulo, Tokyo, Seoul, London, Los Angeles, New York and Hong Kong.
“Urbanization is a global mega-trend. City populations grow by 7500 people per hour, and people are clearly feeling some stress from overcrowding. We also saw how with the use of ICT, (Information and Communication Technology) people in cities alleviated such feelings and got on with city life,” said the Head of Research at Ericsson ConsumerLab, Mr Michael Bjorn.
The survey found that the average commute time in the 13 cities was two hours, twenty minutes per day.
“People are more relaxed when they know how long their commute will take, as this enables them to use their time more efficiently. Smart-phones are becoming an invaluable tool on the daily commute,' said Mr Bjorn.
“Big cities are hotbeds for creativity, bringing together people from different walks of life. The sheer number of social opportunities is what makes life alluring in such cities,” he said.
Some issues
City dwellers seemed most satisfied with the abundance of restaurants, pubs, cafes, shopping malls, supermarkets and entertainment facilities, apart from mobile network and water distribution.
Traffic and parking, air quality, overall cleanliness and the manner of communication by authorities frustrated city dwellers the most, according to the survey.
The findings further revealed that women in Mumbai and Tokyo were slightly happier living in cities than men; and young people were found happier than the old in Cairo and Seoul. This was in contrast to Mumbai, Stockholm and Tokyo, where the aged ones were most content.
India's business capital has in the survey outranked cities such as New York, London and Los Angeles.
The 30-minute online survey (with 1,500 participants per city) was carried out in Cairo, Johannesburg, Mumbai, Stockholm, Beijing, Moscow, Sao Paulo, Tokyo, Seoul, London, Los Angeles, New York and Hong Kong.
“Urbanization is a global mega-trend. City populations grow by 7500 people per hour, and people are clearly feeling some stress from overcrowding. We also saw how with the use of ICT, (Information and Communication Technology) people in cities alleviated such feelings and got on with city life,” said the Head of Research at Ericsson ConsumerLab, Mr Michael Bjorn.
The survey found that the average commute time in the 13 cities was two hours, twenty minutes per day.
“People are more relaxed when they know how long their commute will take, as this enables them to use their time more efficiently. Smart-phones are becoming an invaluable tool on the daily commute,' said Mr Bjorn.
“Big cities are hotbeds for creativity, bringing together people from different walks of life. The sheer number of social opportunities is what makes life alluring in such cities,” he said.
Some issues
City dwellers seemed most satisfied with the abundance of restaurants, pubs, cafes, shopping malls, supermarkets and entertainment facilities, apart from mobile network and water distribution.
Traffic and parking, air quality, overall cleanliness and the manner of communication by authorities frustrated city dwellers the most, according to the survey.
The findings further revealed that women in Mumbai and Tokyo were slightly happier living in cities than men; and young people were found happier than the old in Cairo and Seoul. This was in contrast to Mumbai, Stockholm and Tokyo, where the aged ones were most content.
Monday, May 21, 2012
Indian e-commerce sector to witness robust hiring this fiscal
New Delhi: The e-commerce industry in India is expected to witness increase in hiring, with online retailers being bullish about their employment plans during 2012-13, according to various industry players.
"With the growing e-commerce industry in the country and major international players entering the market, the number of job offers would certainly look up," Sundeep Malhotra, CEO and Founder, Homeshop18.com. The company has grown by over 70 per cent in headcount terms in 2011.
The online retail segment is expected to report strong growth in the coming years, on the back of growing Internet consumer base, increasing use of smartphones, laptops/PCs and availability of Internet in the remotest part of the country. The segment is expected to grow from Rs 2,000 crore (US$ 366.03 million) during 2012 to Rs 7,000 crore (US$ 1.28 billion) by 2015. It is growing at an annual rate of 35 per cent, according to report by a leading industry body.
"e-commerce space is a booming space as Internet audience are likely to double in the next two-three years and this industry will require talent from various sectors like technology, product, analytics, sourcing, general management talent, merchandising and marketing," according to Pearl Uppal, Co-Founder and Chief Executive Officer (CEO), Fashionandyou.com.
Due to the growth in the sector, e-commerce companies are recruiting the best talent available from premier institutions such as the Indian Institute of Management (IIM) and the Indian Institute of Technology (IIT).
Some of India's leading e-commerce portals are Flipkart.com, Futurebazaar.com, eBay.in, Snapdeal.com, Homeshop18.com, Fashionandyou.com and Rediffshopping.com.
"With the growing e-commerce industry in the country and major international players entering the market, the number of job offers would certainly look up," Sundeep Malhotra, CEO and Founder, Homeshop18.com. The company has grown by over 70 per cent in headcount terms in 2011.
The online retail segment is expected to report strong growth in the coming years, on the back of growing Internet consumer base, increasing use of smartphones, laptops/PCs and availability of Internet in the remotest part of the country. The segment is expected to grow from Rs 2,000 crore (US$ 366.03 million) during 2012 to Rs 7,000 crore (US$ 1.28 billion) by 2015. It is growing at an annual rate of 35 per cent, according to report by a leading industry body.
"e-commerce space is a booming space as Internet audience are likely to double in the next two-three years and this industry will require talent from various sectors like technology, product, analytics, sourcing, general management talent, merchandising and marketing," according to Pearl Uppal, Co-Founder and Chief Executive Officer (CEO), Fashionandyou.com.
Due to the growth in the sector, e-commerce companies are recruiting the best talent available from premier institutions such as the Indian Institute of Management (IIM) and the Indian Institute of Technology (IIT).
Some of India's leading e-commerce portals are Flipkart.com, Futurebazaar.com, eBay.in, Snapdeal.com, Homeshop18.com, Fashionandyou.com and Rediffshopping.com.
India's gem & jewellery sector to obtain orders in US show, says GJEPC
Mumbai: India's gems and jewellery industry is all set to make an impact in the upcoming jewellery show in the US and expect to obtain huge export orders for this fiscal. The industry will showcase its designs and innovations in this mega event at the JCK Las Vegas jewellery show to be scheduled from June 1 to 4.
"We expect to get large size jewellery and diamond orders for the next couple of months that will boost the overall sentiments. It is an opportunity to further accentuate India's growing recognition in the international arena as the global destination of gems and jewellery," says Rajiv Jain, chairman of Gems and jewellery export promotion council ( GJEPC).
The council has invited country's leading manufacturers and retailers to display their latest designer jewellery in the categories of mass produced, couture and further that of gold, platinum and silver.
The council has joined hands with the country's successful campaign- India Incredible and signed 'Sonam Kapoor' as brand ambassador for the event. The gems and jewellery industry in the last fiscal has gone up by 5% at Rs 2.04 lakh crore against Rs 1.95 lakh crore in previous fiscal.
The gems and jewellery sector accounted for India's 14% total merchandise exports. On the contrary, the imports of raw materials for making gems and jewellery stood up at 32% at Rs 72,160 crore in Fy 12 over Rs 54,564 crore last fiscal.
"We expect to get large size jewellery and diamond orders for the next couple of months that will boost the overall sentiments. It is an opportunity to further accentuate India's growing recognition in the international arena as the global destination of gems and jewellery," says Rajiv Jain, chairman of Gems and jewellery export promotion council ( GJEPC).
The council has invited country's leading manufacturers and retailers to display their latest designer jewellery in the categories of mass produced, couture and further that of gold, platinum and silver.
The council has joined hands with the country's successful campaign- India Incredible and signed 'Sonam Kapoor' as brand ambassador for the event. The gems and jewellery industry in the last fiscal has gone up by 5% at Rs 2.04 lakh crore against Rs 1.95 lakh crore in previous fiscal.
The gems and jewellery sector accounted for India's 14% total merchandise exports. On the contrary, the imports of raw materials for making gems and jewellery stood up at 32% at Rs 72,160 crore in Fy 12 over Rs 54,564 crore last fiscal.
Coconut Development Board signs MoU with Trinidad & Tobago
Kochi: Coconut Development Board (CDB)and the Republic of Trinidad and Tobago has signed a MoU to encourage and develop technical collaboration between India and the latter for the development of coconut industry. This is the first time the board is entering into an agreement with a commonwealth country for transfer of technology.
The thrust areas in the MoU are identification and supply of 60,000 coconut seedlings within a period of two years, transfer of technology , post harvest management and primary processing, production of value added products from coconut and mechanized palm climbing.
Skilled and trained man power outsourcing have also been envisaged for short duration. It is expected to provide India to explore more marketing opportunities in coconut in Trinidad and Tobago.
CDB chairman T K Jose said the board will give technical support to rehabilitate 10,000 acres over a period of two years for which nearly 6 lakh superior quality seedlings will be produced.
The MoU was signed between CDB chairman and Pranesh Maharaj, chairman of St.Patrick Coconut Growers Co-operative Society of Trinidad and Tobago, who is on a visit to the country, on Thursday. A team of officials from Coconut Development Board will visit Trinidad and Tobago to make an assessment of the coconut industry there.
The thrust areas in the MoU are identification and supply of 60,000 coconut seedlings within a period of two years, transfer of technology , post harvest management and primary processing, production of value added products from coconut and mechanized palm climbing.
Skilled and trained man power outsourcing have also been envisaged for short duration. It is expected to provide India to explore more marketing opportunities in coconut in Trinidad and Tobago.
CDB chairman T K Jose said the board will give technical support to rehabilitate 10,000 acres over a period of two years for which nearly 6 lakh superior quality seedlings will be produced.
The MoU was signed between CDB chairman and Pranesh Maharaj, chairman of St.Patrick Coconut Growers Co-operative Society of Trinidad and Tobago, who is on a visit to the country, on Thursday. A team of officials from Coconut Development Board will visit Trinidad and Tobago to make an assessment of the coconut industry there.
Adi Godrej leading CEOs team to Japan
Bangalore: The Confederation of Indian Industry (CII) is organising a 19-member CEOs' delegation visit to Japan as part of the celebration of 60 years of diplomatic relations between the two countries.
“The intensity of involvement or engagement from Japan in Indian companies has increased over the years,” Mr Vikram S. Kirloskar, co-leader and Vice-Chairman, Toyota Kirloskar Motor, told Business Line.
The three-day visit will be led by Mr Adi Godrej, President - CII, and Chairman, Godrej Group.
Mr Kirloskar pointed out that bilateral investments have surged in the last three years, and total FDI from Japan was $12.2 billion between April 2000 and February 2012.
Japan has emerged as the third largest source of FDI for India, he said.
Total trade between the two countries in 2010-11 was $13.8 billion. India's exports stood at $5.2 billion and imports from Japan were at $8.6 billion in 2010-11.
Some of the sectors where the delegation will look for engagement include infrastructure, services including finance, legal and ICT, electronic hardware, heavy industries, environmental management technology, telecom and life sciences.
Mr Kirloskar said that India is the largest recipient of overseas development assistance from Japan in keynote projects such as the Delhi Metro.
He added that Japan's involvement in the upcoming $90-billion Delhi-Mumbai Industrial Corridor, which would see development of industrial clusters in six states, and the Bangalore-Chennai corridor project were noteworthy.
Japan would also fund the hi-speed rail project between Chennai and Bangalore, which could go up to Mysore, he added.
According to him, a third highway was also being planned between the two cities, besides a Japanese township was also being planned in Karnataka.
The services sector was also looking for business opportunities in Japan, and many IT/ITeS companies were now expanding quite rapidly in Japan, said Mr Kirloskar.
In the life-sciences space, the Daiichi Sankyo acquisition of Ranbaxy has paved the way for Japanese interest in the Indian life-sciences sector, he added.
A delegation of small-scale companies also would visit Japan, he said.
“We are trying to get small-scale companies involved in Japan, and help them overcome the language and cultural barriers. We want to push the co-operation that we get from Japanese companies to smaller companies as well,” said Mr Kirloskar.
A two-day India-Japan Business Summit, organised by the CII and Japanese industry body Kaidanren, will also be held from May 23, which will also see participation from the Union Minister of Commerce, Mr Kamal Nath.
“The intensity of involvement or engagement from Japan in Indian companies has increased over the years,” Mr Vikram S. Kirloskar, co-leader and Vice-Chairman, Toyota Kirloskar Motor, told Business Line.
The three-day visit will be led by Mr Adi Godrej, President - CII, and Chairman, Godrej Group.
Mr Kirloskar pointed out that bilateral investments have surged in the last three years, and total FDI from Japan was $12.2 billion between April 2000 and February 2012.
Japan has emerged as the third largest source of FDI for India, he said.
Total trade between the two countries in 2010-11 was $13.8 billion. India's exports stood at $5.2 billion and imports from Japan were at $8.6 billion in 2010-11.
Some of the sectors where the delegation will look for engagement include infrastructure, services including finance, legal and ICT, electronic hardware, heavy industries, environmental management technology, telecom and life sciences.
Mr Kirloskar said that India is the largest recipient of overseas development assistance from Japan in keynote projects such as the Delhi Metro.
He added that Japan's involvement in the upcoming $90-billion Delhi-Mumbai Industrial Corridor, which would see development of industrial clusters in six states, and the Bangalore-Chennai corridor project were noteworthy.
Japan would also fund the hi-speed rail project between Chennai and Bangalore, which could go up to Mysore, he added.
According to him, a third highway was also being planned between the two cities, besides a Japanese township was also being planned in Karnataka.
The services sector was also looking for business opportunities in Japan, and many IT/ITeS companies were now expanding quite rapidly in Japan, said Mr Kirloskar.
In the life-sciences space, the Daiichi Sankyo acquisition of Ranbaxy has paved the way for Japanese interest in the Indian life-sciences sector, he added.
A delegation of small-scale companies also would visit Japan, he said.
“We are trying to get small-scale companies involved in Japan, and help them overcome the language and cultural barriers. We want to push the co-operation that we get from Japanese companies to smaller companies as well,” said Mr Kirloskar.
A two-day India-Japan Business Summit, organised by the CII and Japanese industry body Kaidanren, will also be held from May 23, which will also see participation from the Union Minister of Commerce, Mr Kamal Nath.
Talks on Indo-US bilateral investment treaty at advanced stag
Chennai: The US ambassador to India, Ms Nancy Powell, has said the Bilateral Investment Treaty between India and the US has reached an advanced stage of negotiation.
“This treaty would enhance transparency and predictability for investors, and support economic growth and job creation in both countries,” said Ms Powell on a visit to Chennai.
“We expect a new round (of negotiations) to kick off very soon.”
The Ambassador said the US is committed to working with the Indian Government in resolving the challenges to trade and investment. The challenges include high tariff and non-tariff barriers, restrictions on foreign investment and policy decisions.”
In her address to the Indian business community, organised by the Indo-American Chamber of Commerce, Ms Powell said the adoption of manufacturing policies discriminatory to foreign companies and the inclusion of retroactive tax provisions in the Finance Bill by India are two examples of policy decisions that could dampen business sentiment.
Ms Powell said her primary purpose was to ensure bilateral business ties get a big boost. In 1995, the value of US goods exports to India was just above $3 billion. Last year, it topped $21 billion and this year it is expected to touch $100 billion. In 1995, when Ms Powell left India as Minister-Counsellor for Political Affairs in Delhi, US FDI into India was negligible. Now it’s near $30 billion. Indian FDI in the US tops $3 billion.
While US software and auto companies have made good headway in India, the emerging opportunities are in the areas of nano-technology, biotechnology and homeland security.
“This treaty would enhance transparency and predictability for investors, and support economic growth and job creation in both countries,” said Ms Powell on a visit to Chennai.
“We expect a new round (of negotiations) to kick off very soon.”
The Ambassador said the US is committed to working with the Indian Government in resolving the challenges to trade and investment. The challenges include high tariff and non-tariff barriers, restrictions on foreign investment and policy decisions.”
In her address to the Indian business community, organised by the Indo-American Chamber of Commerce, Ms Powell said the adoption of manufacturing policies discriminatory to foreign companies and the inclusion of retroactive tax provisions in the Finance Bill by India are two examples of policy decisions that could dampen business sentiment.
Ms Powell said her primary purpose was to ensure bilateral business ties get a big boost. In 1995, the value of US goods exports to India was just above $3 billion. Last year, it topped $21 billion and this year it is expected to touch $100 billion. In 1995, when Ms Powell left India as Minister-Counsellor for Political Affairs in Delhi, US FDI into India was negligible. Now it’s near $30 billion. Indian FDI in the US tops $3 billion.
While US software and auto companies have made good headway in India, the emerging opportunities are in the areas of nano-technology, biotechnology and homeland security.
Friday, May 18, 2012
Aurobindo gets USFDA nod for anti-HIV drugs
Hyderabad: Aurobindo Pharma Ltd has received final approval from the US Food and Drug Administration to manufacture and market Lamivudine and Zidovudine tablets.
The tablets are the generic equivalent of ViiV Healthcare Company’s Combivir tablets and are indicated for the treatment of Human Immunodeficiency Virus (HIV) infected adults and children.
The product, which was approved out of Unit VII formulations facility of the company here, was ready for launch, Aurobindo Pharma said in a release on Thursday.
The tablets are the generic equivalent of ViiV Healthcare Company’s Combivir tablets and are indicated for the treatment of Human Immunodeficiency Virus (HIV) infected adults and children.
The product, which was approved out of Unit VII formulations facility of the company here, was ready for launch, Aurobindo Pharma said in a release on Thursday.
Angel investors launch first online platform for start-ups
New Delhi: Here's some good news for start-ups. With a goal to connect entrepreneurs with investors, a group of angel investors, including Google India Managing Director Rajan Anandan, has come together to launch an online platform — VentureFund.com — with an initial corpus of $100 million. The founding team members include Lord Alli, co-founder and chairman of www.asos.com, Ashok Kurien, director in the boards of Zee TV, Sun TV and Playwin, and Paul Shoker, a serial investor who has interests in Indian ventures such as thePrivateSales.com and Koovs.com. Shoker would lead the fund as its vice-chairman. Anandan, also a member of the Indian Angel Network, is part of the venture in his personal capacity.
VentureFund.com, a brainchild of Shoker, aims to connect entrepreneurs of early stage companies with qualified investors from around the world. The site will go live later this week.
Shoker, who claims this is the first online platform for entrepreneurs and angel investors, started working on this concept six months back when his younger son wanted to invest in start-ups. “There was no authentic platform from where you could get details about start-ups,” Shoker said. He was quick to spot this problem and wrapped an online solution around it, in the form of the VentureFund platform.(WEB OF INVESTMENTS)
“The response we have had from entrepreneurs and investors clearly demonstrates that we are building upon a need to help the start-up community to get their ideas off the ground and succeed. Within six weeks, we have been able to get $100 million,” said Shoker. “By the end of the year, we expect this to be a $500-million fund.”
Besides, VentureFund.com would also act as an e-commerce platform. It has already tied up with the US-based e-retailer Amazon.com to offer a reading list for its users.
Though the platform would be free for investors, entrepreneurs would have to pay a one-time fee of around $100 (about Rs 5,400) after being contacted by a prospective investor.
“With over 100 million start-ups coming up every year worldwide, this market is very fragmented. But, most of these start-ups look for mentoring and funding. We wanted to create a platform for both entrepreneurs and investors,” said Kurien.
“Qualified deal flow is essential for any investor, and for that to happen we have to educate and mentor the best ideas and start-ups,” he added.
VentureFund.com, a brainchild of Shoker, aims to connect entrepreneurs of early stage companies with qualified investors from around the world. The site will go live later this week.
Shoker, who claims this is the first online platform for entrepreneurs and angel investors, started working on this concept six months back when his younger son wanted to invest in start-ups. “There was no authentic platform from where you could get details about start-ups,” Shoker said. He was quick to spot this problem and wrapped an online solution around it, in the form of the VentureFund platform.(WEB OF INVESTMENTS)
“The response we have had from entrepreneurs and investors clearly demonstrates that we are building upon a need to help the start-up community to get their ideas off the ground and succeed. Within six weeks, we have been able to get $100 million,” said Shoker. “By the end of the year, we expect this to be a $500-million fund.”
Besides, VentureFund.com would also act as an e-commerce platform. It has already tied up with the US-based e-retailer Amazon.com to offer a reading list for its users.
Though the platform would be free for investors, entrepreneurs would have to pay a one-time fee of around $100 (about Rs 5,400) after being contacted by a prospective investor.
“With over 100 million start-ups coming up every year worldwide, this market is very fragmented. But, most of these start-ups look for mentoring and funding. We wanted to create a platform for both entrepreneurs and investors,” said Kurien.
“Qualified deal flow is essential for any investor, and for that to happen we have to educate and mentor the best ideas and start-ups,” he added.
Banks can set up biz correspondent outlets in rural areas
Mumbai: The Reserve Bank of India (RBI) on Thursaday allowed banks to establish outlets for business correspondents (BC) in rural centres to drive the government’s financial inclusion programme.
“It is advised that for further financial inclusion, banks may establish outlets in rural centres from which BCs may operate. These BC outlets may be in the form of low cost simple brick and mortar structures,” the RBI said in a statement.
Currently, every BC is attached to and is under the oversight of a base branch of a bank. The base branch will now supervise the BC outlets, including periodic visits by officers of the base branch to these outlets.
RBI also said that BCs can operate from ultra-small branches of banks as their association with the branch will increase the “legitimacy and credibility” in the area and give people confidence to use their services. Banks, however, should ensure that such arrangements must not lead to BCs servicing customers at these branches only.
“It is advised that for further financial inclusion, banks may establish outlets in rural centres from which BCs may operate. These BC outlets may be in the form of low cost simple brick and mortar structures,” the RBI said in a statement.
Currently, every BC is attached to and is under the oversight of a base branch of a bank. The base branch will now supervise the BC outlets, including periodic visits by officers of the base branch to these outlets.
RBI also said that BCs can operate from ultra-small branches of banks as their association with the branch will increase the “legitimacy and credibility” in the area and give people confidence to use their services. Banks, however, should ensure that such arrangements must not lead to BCs servicing customers at these branches only.
Shipping ministry to invest Rs 73,793.95 crore for projects in port sector
The Shipping ministry will invest Rs.73,793.95 crore for development of various projects in the port sector as part of the 12th Five Year Plan.
India has a total of 187 minor ports and 13 major ports spread across the nine maritime states and the national maritime agenda is looking at raising the total port traffic to about 2500 million tonnes by 2020 as compared to the current levels of less than 800 million tonnes. In addition, the maritime agenda also estimates that the total capacity at all the ports will rise to 3130 million tonnes as compared to 900 million tonnes now.
The shipping ministry had earlier said that it was looking to award 24 public-private partnership projects in the port sector worth Rs 17,000 crore in 2011-12, but it could not award more than one project. While some of the port projects had been faced with security hurdles and is awaiting the clearance from the defence ministry, the shipping ministry is certain that the target will be achieved.
" We are sure that the target can be achieved. The sector has huge potential and both Indian and foreign companies are keen on developing projects," said Rakesh Shrivastava, Joint Secretary (Ports), Ministry of Shipping had earlier told ET.
The ministry also said that by the end of March, 2012 the existing capacity at Major Ports was 689.83 million tonnes per annum As per 12th Five year plan the capacity of Major Ports will be increased to 1229.24 million tonnes per annum by the end of March, 2017.
India has a total of 187 minor ports and 13 major ports spread across the nine maritime states and the national maritime agenda is looking at raising the total port traffic to about 2500 million tonnes by 2020 as compared to the current levels of less than 800 million tonnes. In addition, the maritime agenda also estimates that the total capacity at all the ports will rise to 3130 million tonnes as compared to 900 million tonnes now.
The shipping ministry had earlier said that it was looking to award 24 public-private partnership projects in the port sector worth Rs 17,000 crore in 2011-12, but it could not award more than one project. While some of the port projects had been faced with security hurdles and is awaiting the clearance from the defence ministry, the shipping ministry is certain that the target will be achieved.
" We are sure that the target can be achieved. The sector has huge potential and both Indian and foreign companies are keen on developing projects," said Rakesh Shrivastava, Joint Secretary (Ports), Ministry of Shipping had earlier told ET.
The ministry also said that by the end of March, 2012 the existing capacity at Major Ports was 689.83 million tonnes per annum As per 12th Five year plan the capacity of Major Ports will be increased to 1229.24 million tonnes per annum by the end of March, 2017.
Capital Goods sector may get Rs 2,360-cr under 12th Plan: Patel
New Delhi: The capital goods sector may be allocated Rs 2,360 crore under the 12th Five Year Plan. This is part of a scheme to provide technical support and to develop manufacturing expertise through modern industrial parks.
This information was provided by the Union Minister for Heavy Industries, Mr Praful Patel in the Lok Sabha on Thursday.
“The Planning Commission has formulated a ‘Manufacturing Plan’ for the five year plan under which capital goods is one of the
focus sectors. The scheme includes R&D and technology support, common facility support, skill development and interest subvention,” the Minister said.
A feasibility study for the planned scheme was prepared during the 11th Five Year Plan, but the financial approval was deferred to the 12th Five Year Plan.
The Manufacturing Plan proposes policies and technology support in order to provide a level playing field to domestic manufacturers vis-a-vis foreign companies. The aim is to enhance growth, global competitiveness and reduce import dependence. It also envisages common facility and product development Centres in and around capital goods industrial clusters.
Additionally, the Government has also set up development councils for important sectors like machine tools, textile machines and heavy electrical equipment.
This information was provided by the Union Minister for Heavy Industries, Mr Praful Patel in the Lok Sabha on Thursday.
“The Planning Commission has formulated a ‘Manufacturing Plan’ for the five year plan under which capital goods is one of the
focus sectors. The scheme includes R&D and technology support, common facility support, skill development and interest subvention,” the Minister said.
A feasibility study for the planned scheme was prepared during the 11th Five Year Plan, but the financial approval was deferred to the 12th Five Year Plan.
The Manufacturing Plan proposes policies and technology support in order to provide a level playing field to domestic manufacturers vis-a-vis foreign companies. The aim is to enhance growth, global competitiveness and reduce import dependence. It also envisages common facility and product development Centres in and around capital goods industrial clusters.
Additionally, the Government has also set up development councils for important sectors like machine tools, textile machines and heavy electrical equipment.
Thursday, May 17, 2012
TimesDeal registers record 70,000 deals in a day
New Delhi: TimesDeal.com, the group buying portal of The Times of India Group, set a new record with 70,000 mobile recharge deals in a day. The portal outdid its own feat of 50,000 orders in a day established on December 1, 2011.
The portal offered a special mobile recharge deal on May 9 that allowed users to pay just 50 and get a mobile recharge voucher from PayTM worth 100, doubling the value of their money. The portal got 70,000 orders in a single day, a new record in terms of number of online orders in the e-commerce space in India.
Rishi Khiani, CEO of Times Internet, said, "Offering maximum value for money to customers is core to the deals business. Therefore, the primary focus of TimesDeal has always been to offer users such relevant high value-for-money deals. The repeated overwhelming response bears testimony to this."
Paytm.com, a subsidiary of One97 Communications, is the partner in the deal. It's a leading online company for mobile, DTH and data card recharge. The offer generated an overwhelming response for both Paytm and Timesdeal on the day of the offer.
TimesDeal.com deals include tickets to events, places to see, restaurant deals, shopping deals, etc, across nine cities - Mumbai, Delhi-NCR, Kolkata, Chennai, Bangalore, Pune, Chandigarh, Hyderabad and Ahmedabad.
The portal offered a special mobile recharge deal on May 9 that allowed users to pay just 50 and get a mobile recharge voucher from PayTM worth 100, doubling the value of their money. The portal got 70,000 orders in a single day, a new record in terms of number of online orders in the e-commerce space in India.
Rishi Khiani, CEO of Times Internet, said, "Offering maximum value for money to customers is core to the deals business. Therefore, the primary focus of TimesDeal has always been to offer users such relevant high value-for-money deals. The repeated overwhelming response bears testimony to this."
Paytm.com, a subsidiary of One97 Communications, is the partner in the deal. It's a leading online company for mobile, DTH and data card recharge. The offer generated an overwhelming response for both Paytm and Timesdeal on the day of the offer.
TimesDeal.com deals include tickets to events, places to see, restaurant deals, shopping deals, etc, across nine cities - Mumbai, Delhi-NCR, Kolkata, Chennai, Bangalore, Pune, Chandigarh, Hyderabad and Ahmedabad.
Piramal Health buys US data firm for $635 mn
Mumbai: The cash-rich Piramal Healthcare has closed its second deal in the past month to strengthen its pharma research and development business. The company has said it would acquire the US-based Decision Resources Group (DRG) for a consideration of nearly $635 million (Rs 3,400 crore).
DRG provides web-enabled research and consulting services to the global health care industry. It has projected a revenue of $160 million for 2012.
At present, the US-based PE major Providence Equity Partners holds a majority stake in DRG. Previously owned by private equity firms Castanea Partners and Boston Ventures Management, DRG was acquired by Providence in 2007.
With this deal, Piramal has entered the $5.7-billion global health care information management business. The transaction was expected to be closed by June 30, 2012, subject to customary regulatory approvals and closing conditions, Piramal Healthcare said in a statement. Piramal Healthcare shares on Wednesday went down 0.95 per cent to close at Rs 427 on the Bombay Stock Exchange. Barclays was the advisor on the deal.
Piramal Healthcare Chairman Ajay Piramal said, “The need for specialist information is critical and the demand is growing. DRG's portfolio of products is widely regarded as the gold standard of information.”
He said nearly 300 analysts with a strong track record in their field would be part of the acquisition. “The global health care industry is facing several challenges, including rising research costs, lower drug approval rates, mounting regulatory pressures and increasingly complex reimbursement models,” he said.
Following the completion of the acquisition, Piramal will operate DRG as a stand-alone business. The company will continue to be led by the existing senior management team.
Since the Rs 17,000-crore sale of its domestic formulation business to the US-based Abbott in September 2010, Piramal Healthcare has been expanding its pharma business, with a focus on research and development.
In April, Piramal Healthcare had entered into an agreement to acquire worldwide rights to the molecular imaging research and development portfolio of Bayer Pharma AG. As part of expanding its business into molecular imaging, Piramal Healthcare had set up a subsidiary, Piramal Imaging SA.
Piramal Healthcare invested about Rs 6,400 crore in telecom company Vodafone India to pick up about 11 per cent stake. It had also set up a financial services subsidiary, Piramal Finance, to enter the non-banking financial company space. In 2011, the group floated Piramal Systems and Technologies to foray into the defence security space.
Piramal said to a TV channel on Wednesday he was not worried about the investment made in Vodafone, as he had the option to sell it back or find a third alternative party if need be. Piramal said it would be a short-term investment, for two-three years.
Escorts in technical pact with Italy's Locatelli for large cranes
New Delhi: Just about a week is left for Escorts' merger plan of its subsidiaries to come through. However, the Group is already busy shoring up its engineering capabilities by acquiring new technology from overseas.
In March, it entered into a tie-up with Italian cranemaker Locatelli. With this, it will widen its construction equipment portfolio by locally manufacturing large skew (360 degree rotation) cranes of 60-80 tonnes capacity.
Production of the cranes, which are used in material handling for large infrastructure projects such as power plants, metro and bridges, is likely to begin in a year and half.
“This is the genesis of the merger that we're doing. By combining the group entities, we see a lot of efficiency in the combined research and sourcing. We're look at ourselves as an engineering company in the medium to long-term perspective,” said Mr Nikhil Nanda, Joint Managing Director.
The Faridabad-based Group hopes to get a court approval on April 20 for the merger of Escorts Construction Equipment, Escotrac Finance and Investments and Escorts Finance Investment and Leasing, into Group flagship Escorts Ltd. This move is expected to add over Rs 1,000 crore into its Rs 3,200 crore topline.
With demand from the construction equipment business on a high, the company is now searching for about 35 acres for capacity expansion over the next two years. “With the Ballabhgarh plant operating at 100 per cent, we need to take up more land on a lease basis. This will happen very soon,” Mr Nanda said.
The Locatelli tie-up is just the first of multiple such technical collaborations currently in the works across the construction and farm equipment businesses. For the first vertical, at least 15 new products are planned in the next 18 months for areas such as mine equipment and asphalt handling.
Jumping the R&D ladder by acquiring new technology is not new to the Group though.
Early support for tractors came from Ford, while Yamaha used to be a partner for an erstwhile motorcycle range it produced.
More mainstream products, such as trucks and dumpers, have also been thought about.
“There is a lot of technology coming cheap from the East European corridor. We had done a study, but are not going there right now,” another company official said.
Escorts shares on the BSE were up 1.51 per cent to Rs 67.35 on Tuesday.
In March, it entered into a tie-up with Italian cranemaker Locatelli. With this, it will widen its construction equipment portfolio by locally manufacturing large skew (360 degree rotation) cranes of 60-80 tonnes capacity.
Production of the cranes, which are used in material handling for large infrastructure projects such as power plants, metro and bridges, is likely to begin in a year and half.
“This is the genesis of the merger that we're doing. By combining the group entities, we see a lot of efficiency in the combined research and sourcing. We're look at ourselves as an engineering company in the medium to long-term perspective,” said Mr Nikhil Nanda, Joint Managing Director.
The Faridabad-based Group hopes to get a court approval on April 20 for the merger of Escorts Construction Equipment, Escotrac Finance and Investments and Escorts Finance Investment and Leasing, into Group flagship Escorts Ltd. This move is expected to add over Rs 1,000 crore into its Rs 3,200 crore topline.
With demand from the construction equipment business on a high, the company is now searching for about 35 acres for capacity expansion over the next two years. “With the Ballabhgarh plant operating at 100 per cent, we need to take up more land on a lease basis. This will happen very soon,” Mr Nanda said.
The Locatelli tie-up is just the first of multiple such technical collaborations currently in the works across the construction and farm equipment businesses. For the first vertical, at least 15 new products are planned in the next 18 months for areas such as mine equipment and asphalt handling.
Jumping the R&D ladder by acquiring new technology is not new to the Group though.
Early support for tractors came from Ford, while Yamaha used to be a partner for an erstwhile motorcycle range it produced.
More mainstream products, such as trucks and dumpers, have also been thought about.
“There is a lot of technology coming cheap from the East European corridor. We had done a study, but are not going there right now,” another company official said.
Escorts shares on the BSE were up 1.51 per cent to Rs 67.35 on Tuesday.
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