Mumbai: Four international banks have sanctioned Reliance Power $800 million (Rs 4,432 crore) of debt for its ultra mega power project in Sasan. Memoranda of understanding for these loans were signed during US President Barack Obama’s visit to India in 2010.
While US Exim Bank sanctioned $600 million, the remaining would be provided by Standard Chartered Bank, Mizuho Bank and Developmental Bank of Singapore. Reliance Power says it was decided the loans would be provided at a fixed interest rate of 3.6 per cent a year, and this could help the company save on interest costs.
“This financing, along with financing from Chinese banks, would support import of world-class equipment for this prestigious project,” said Reliance Power chief executive J P Chalasani. The loans would be used to refinance the equipment purchased for the 4,000-Mw ultra mega power project’s captive coal mine. Most of the equipment was purchased from Caterpillar Inc in the US.
The first unit of the Sasan project is expected to be commissioned in December and the coal mine is expected to be operational before that. Earlier, the company had earlier tied up about $1.1 billion (Rs 6,094 crore) from Chinese banks. Equipment for the power plant, such as boiler-turbine and generators, has already been purchased from Chinese suppliers.
Success in my Habit
Tuesday, July 31, 2012
PM sets up panel to review taxation of development centres, IT sector
New Delhi: The Prime Minister has constituted a Committee to Review Taxation of Development Centres and the Information Technology Sector.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
FDA nod for GVK Biosciences' Ahmedabad unit
Hyderabad: GVK Biosciences, a contract research organisation, announced on Monday that its clinical pharmacology unit at Ahmedabad has cleared a US drug regulatory audit.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
Small and Light CV Segment to more than double to 8 lakh units by 2015-16: Report
Mumbai: The Indian small and light commercial vehicle segment, which is one of the fastest growing segments in the country is expected to more than double by 2015-16 and grow at 18.5% compounded annual growth rate for the next five years, according to research report published by leading research agency Frost & Sullivan called 'Strategic Assesment of Small and Light Commercial Vehicles Market in India.'
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
India takes the lead in national standards for organic textiles
New Delhi: India has become the first country in the world to introduce national standards for organic textiles. This follows the Commerce, Industry and Textiles Minister, Mr Anand Sharma, on Monday launching the “Indian Standards for Organic Textiles” (ISOT). The standards will be introduced in the National Standards for Organic Production (NPOP) and will be administered by the Commerce and Industry Ministry as part of the Foreign Trade Policy, an official statement said. There are over 1,000 branded organic products produced in India and each one is backed up with certification and traceability. Last year, India supplied certified organic products worth Rs 1,866 crore to Europe, Asia and the US, Mr Sharma said. “The NPOP includes norms for organic production and processing of agriculture crops and certification standards. Certification standards for organic textiles were not a part of it earlier. By introducing ISOT, India took over the long-standing position of the Global Organic Textiles standards (GOTS), a private standards prevailing in the organic textiles industry,” said the Commerce Secretary, Mr S.R. Rao.
Monday, July 30, 2012
Technopark incubator, Oman college ink MoU
Thiruvananthapuram: Technopark-Technology Business Incubator has agreed to help set up an entrepreneurial ecosystem at the Caledonian College of Engineering, Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Crompton Greaves acquires Spanish smart grid provider
Mumbai: Crompton Greaves (CG) has acquired 100 per cent stake in Spain-based ZIV for an enterprise value of €150 million.
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr
Mumbai: Indian Oil Corporation (IOC) will set up its first refinery outside India with an investment of up to Rs 20,000 crore in Sri Lanka. It will thus become the second Indian company to have a refinery abroad.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
Solar photovoltaic installations in India cross 1 GW milestone
Chennai: Solar photovoltaic installations in India have crossed the 1,000 MW or 1 gigawatt (GW) mark, data made available by the Ministry of New and Renewable Energy, show.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
India's GDP will cross the $5 trillion mark by 2020: Report
New Delhi: Business information and knowledge provider Dun & Bradstreet on Friday forecasted that India's GDP will still cross the US$ 5 trillion mark by 2020 despite the economy slowdown, in its second edition of its publication, India 2020 - economy outlook.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
Sunday, July 29, 2012
Kavveri Telecom acquires wireless division of WPCS of United States
Kavveri's strategy is to build its core wireless technology groups and establish itself as a global end to end wireless infrastructure solutions company. The buyout enhances Kavveri's market positioning both in the cellular and public safety market segments in the US.
The acquisition will provide Kavveri with a comprehensive range of wireless systems solutions including in-building for public safety and cellular applications, network solutions, mobile data, asset tracking, radio systems, video solutions, wireless infrastructure and integrated business systems.
Shivakumar Reddy, managing director, Kavveri Telecom Products said, The essence of the WPCS International Incorporated acquisition not only enhances our wireless systems solutions capabilities but will expand and strengthen our sales channels for Kavveri Group products in the US market. ''
Uma Reddy, President of the company said, Kavveri is now well positioned to take advantage of the significant growth opportunities in both public safety and cellular in building applications in the US.
Kavveri has been very bullish about inorganic growth in the last many years. The company had made several acquisitions across Europe in the past.
India Show to promote Indian investments in Sri Lanka
New Delhi: The India Show to be held on August 3-5, 2012, is being organised in Colombo, Sri Lanka. The Show considered to be “land of limitless opportunities” with participation of about 100 Indian companies, will be attended by Mr Anand Sharma, the Union Minister for Commerce and Industry, as per an official.
The event is being organised by the Confederation of Indian Industry (CII) with the support of Ministry of Commerce & Industry, Government of India, India Brand Equity Foundation (IBEF), High Commission of India and the Ceylon Chamber of Commerce, Colombo.
The India Show aims to promote Indian technology and services, and is a platform for Indian companies to showcase their excellence, and to promote Indian investments in Sri Lanka. The exhibition will be followed by a business conference. The bilateral trade between the two countries grew by 65 per cent in 2011 to reach US$ 5 billion.
Automotive, engineering, food & beverage, handicrafts, science and technology, service sectors, telecom, petroleum and natural gas, are some of the key sectors to be represented in the event.
The event is being organised by the Confederation of Indian Industry (CII) with the support of Ministry of Commerce & Industry, Government of India, India Brand Equity Foundation (IBEF), High Commission of India and the Ceylon Chamber of Commerce, Colombo.
The India Show aims to promote Indian technology and services, and is a platform for Indian companies to showcase their excellence, and to promote Indian investments in Sri Lanka. The exhibition will be followed by a business conference. The bilateral trade between the two countries grew by 65 per cent in 2011 to reach US$ 5 billion.
Automotive, engineering, food & beverage, handicrafts, science and technology, service sectors, telecom, petroleum and natural gas, are some of the key sectors to be represented in the event.
Yamaha plans to use India as key global hub
Mr Hiroyuki Suzuki, CEO & Managing Director, India Yamaha Motor, told Business Line that while high-end models could be exported to the Asean region and Japan, low-cost models would be the best bet for emerging nations such as Africa. The idea is to optimise the robust ancillary supplier base here which offers the best in quality and a competitive costing structure.
For the moment, Yamaha has little going for it in India from the viewpoint of market share, but Mr Suzuki said all this was set to change during the course of this decade. The company will focus on gearless scooters as part of its strategy to clock volumes, while 150cc plus motorcycles will contribute to the brand-building effort.
“The scooter market is growing very fast in India and we would like to be part of this segment with the Yamaha DNA. We will focus on young women riders initially (with the Ray) before looking at other user categories,” Mr Suzuki said.
Force to reckon with
While it is still in the process of putting its India house in order, Yamaha has been a force to reckon with in Indonesia, Thailand and Vietnam where it wrapped up last year at 4.6 million units. India’s volumes were more modest at a little over five lakh units of which exports took up a third.
The company has targeted 6.4 lakh two-wheelers this calendar where exports will account for 1.9 lakh units. The one-million-mark has been set for 2015 by which time exports will account for 20 per cent (largely to Latin America and Asia). This component is gradually expected to increase post-2015 as Yamaha will focus on producing more in India for exports to Asean and Africa.
According to Mr Suzuki, India’s ranking in the Yamaha map will climb rapidly in the coming years from its present modest standing. This will go in line with its growing importance as a global production hub which may well see the country overtake traditionally strong Yamaha markets in the Asean region. Incidentally, this is also true for Honda which believes India will become its largest two-wheeler market (ahead of Indonesia and Vietnam) from 2015-16.
Procurement base
Yamaha will also use India as one of its four regional procurement bases to source parts for its global two-wheeler operations, the others being Japan, China and Asean. Its home base, Japan, will focus on technologies, while the global operations (primarily its Asean integrated development centres) will become more proactive in product development. India will join this list in good time as an intensely competitive market will require more local R&D efforts.
Venus Remedies gets third US patent
The patent provides an exclusivity period until May 2027. In addition to this new patent grant, the drug is protected by a number of other patents from across the globe including Australia, New Zealand, South Korea, South Africa and Ukraine.
The new drug is an antibiotic adjuvant entity and is considered effective in case of hospital acquired pneumoniae and febrile neutropenia infections, ouinolones or aminoglycoside resistant cases.
“We see this patent grant as recognition of the capability of not only our company but Indian pharmaceutical industry as a whole in the field of pharmaceutical research. We have already initiated for strategic tie-ups with global pharma giants,’’ said Dr Mufti Suhail Sayeed, Vice President-Venus Medical Research Centre, Venus Remedies.
Infections caused by resistant micro-organisms often fail to respond to conventional treatment, resulting in prolonged illness and greater risk of death. The drug aims to halt the development of bacterial resistance as also its spread.
The company has already been marketing the drug in India and few of the emerging markets around the globe. The product is growing with a CAGR of 50 per cent since the past three years. The company plans to have a pre-IND meeting with the US FDA for fast track approval of the product.
Japanese firms keen on Indian power sector
Hydeabad: Japanese power equipment companies and lenders are keen to work with Indian companies in all spheres of the power sector, according to a senior official from the Japanese Ministry of Economy.
Mr. Tsuneyuki "Hiro" Ito, Deputy Director in Ministry of Economy, Trade and Industry, Japan, said that there is considerable technological and engineering capability that the Japanese companies such as Toshiba, Hitachi and Mitsubishi can offer to Indian companies in the power sector.
Mr. Ito, who was in Hyderabad to speak at the power plant summit, told Business Line that lenders such as Japan International Cooperation Agency and several Japanese banks are keen to take part in some of the power projects being taken up and under implementation directly or through companies.
Already some of the Japanese companies have partnered with Indian companies such as construction major L&T and JSW for power plant equipment and they have managed to bag local orders in the areas of supercritical technology products.
"This engagement will only get stronger as some of the Japanese companies are keen to work in the entire chain of power right from equipment supplies, maintenance, and also refurbishing old plants an upgrading them," he said.
Refraining to comment on quantum of investments or the orders some of these companies are currently working on, he said that the engagement is getting stronger and given the market potential this could help engage more such Japanese companies.
Mr. Tsuneyuki "Hiro" Ito, Deputy Director in Ministry of Economy, Trade and Industry, Japan, said that there is considerable technological and engineering capability that the Japanese companies such as Toshiba, Hitachi and Mitsubishi can offer to Indian companies in the power sector.
Mr. Ito, who was in Hyderabad to speak at the power plant summit, told Business Line that lenders such as Japan International Cooperation Agency and several Japanese banks are keen to take part in some of the power projects being taken up and under implementation directly or through companies.
Already some of the Japanese companies have partnered with Indian companies such as construction major L&T and JSW for power plant equipment and they have managed to bag local orders in the areas of supercritical technology products.
"This engagement will only get stronger as some of the Japanese companies are keen to work in the entire chain of power right from equipment supplies, maintenance, and also refurbishing old plants an upgrading them," he said.
Refraining to comment on quantum of investments or the orders some of these companies are currently working on, he said that the engagement is getting stronger and given the market potential this could help engage more such Japanese companies.
Friday, July 27, 2012
FMCG companies raise ad spends in Q1
Chennai: Going by the reported numbers of three companies—Dabur, Colgate and Hindustan UniLever—it is clear that FMCG companies are increasing their ad spends.
The combined ad spend of these three companies has increased by 33.6 per cent.
These companies have been introducing new products into the market and obviously have felt a need to support them with ads and promos.
For instance, Hindustan Unilever has launched products like Axe soap bar, Fair and Lovely advanced multi vitamin, Pepsodent mouthwashes, Vaseline moisture therapy heel cream and Pureit Advanced.
Colgate has brought in a battery toothbrush and a new toothbrush called Max Fresh. Dabur has a huge range of products in healthcare and home care—from toothpastes to fruit juices and nutrition supplements.
Analysts say that most of the ads have gone to the electronic media. “FMCG contributes more than half to TV advertising but only 9% to print advertising. This is the reason why even though the FMCG companies are increasing their ad spends, the print players are faring badly in terms of ad revenue growth,” says Edelweiss Research in a report on ZEE TV’s performance.
The combined ad spend of these three companies has increased by 33.6 per cent.
These companies have been introducing new products into the market and obviously have felt a need to support them with ads and promos.
For instance, Hindustan Unilever has launched products like Axe soap bar, Fair and Lovely advanced multi vitamin, Pepsodent mouthwashes, Vaseline moisture therapy heel cream and Pureit Advanced.
Colgate has brought in a battery toothbrush and a new toothbrush called Max Fresh. Dabur has a huge range of products in healthcare and home care—from toothpastes to fruit juices and nutrition supplements.
Analysts say that most of the ads have gone to the electronic media. “FMCG contributes more than half to TV advertising but only 9% to print advertising. This is the reason why even though the FMCG companies are increasing their ad spends, the print players are faring badly in terms of ad revenue growth,” says Edelweiss Research in a report on ZEE TV’s performance.
FMCG companies raise ad spends in Q1
Chennai: Going by the reported numbers of three companies—Dabur, Colgate and Hindustan UniLever—it is clear that FMCG companies are increasing their ad spends.
The combined ad spend of these three companies has increased by 33.6 per cent.
These companies have been introducing new products into the market and obviously have felt a need to support them with ads and promos.
For instance, Hindustan Unilever has launched products like Axe soap bar, Fair and Lovely advanced multi vitamin, Pepsodent mouthwashes, Vaseline moisture therapy heel cream and Pureit Advanced.
Colgate has brought in a battery toothbrush and a new toothbrush called Max Fresh. Dabur has a huge range of products in healthcare and home care—from toothpastes to fruit juices and nutrition supplements.
Analysts say that most of the ads have gone to the electronic media. “FMCG contributes more than half to TV advertising but only 9% to print advertising. This is the reason why even though the FMCG companies are increasing their ad spends, the print players are faring badly in terms of ad revenue growth,” says Edelweiss Research in a report on ZEE TV’s performance.
The combined ad spend of these three companies has increased by 33.6 per cent.
These companies have been introducing new products into the market and obviously have felt a need to support them with ads and promos.
For instance, Hindustan Unilever has launched products like Axe soap bar, Fair and Lovely advanced multi vitamin, Pepsodent mouthwashes, Vaseline moisture therapy heel cream and Pureit Advanced.
Colgate has brought in a battery toothbrush and a new toothbrush called Max Fresh. Dabur has a huge range of products in healthcare and home care—from toothpastes to fruit juices and nutrition supplements.
Analysts say that most of the ads have gone to the electronic media. “FMCG contributes more than half to TV advertising but only 9% to print advertising. This is the reason why even though the FMCG companies are increasing their ad spends, the print players are faring badly in terms of ad revenue growth,” says Edelweiss Research in a report on ZEE TV’s performance.
BHEL commissions 5 Mw solar power plant
Chennai/ Bangalore: Bharat Heavy Electricals Ltd (BHEL) has commissioned a 5-Mw grid-connected solar power plant at Shivasamudram near Mandya. This is the single largest solar photovoltaic (PV) power plant in Karnataka.
The plant has been set up by BHEL for the state-owned power producer, Karnataka Power Corporation Limited (KPCL), at a cost of Rs 62 crore.
With the commissioning of this unit, the company has set a new record in its solar PV business in a single year, by commissioning 15 Mw of solar power plants in various parts of the country during fiscal 2011-12, marking a significant contribution to the nation’s green initiatives.
For the Shivasamudram project, BHEL’s scope of work included design, manufacture, supply, erection and commissioning of the solar power plant. In addition, BHEL will also operate and maintain the solar power plant for a period of three years.
The solar power plant is operating satisfactorily since synchronising with the main grid and DC power generated by the solar panels is converted into AC by inverters and fed into a 66 kV grid through transformers. Crystalline silicon photovoltaic (C-SI PV) technology has been used for the solar power plant, which is well-proven and has the longest operational experience across the world.
The power plant consists of arrays of photovoltaic panels made of crystalline silicon solar cells that absorb sunlight and convert it into electricity that will be fed into the main grid.
Backed by a vast experience and expertise of nearly three decades in Power Electronics & System integration, BHEL is a leading player in the field of solar photovoltaics, from Solar Cells to System Integration of SPV power plants in India.
The SPV modules are manufactured at its ultra-modern manufacturing facility located at Bangalore. An R&D unit, located in Gurgaon, supports the operations in semi-conductors and solar photovoltaics.
In line with the rapid growth in this field, BHEL is planning to augment its manufacturing facility for Solar PV Modules during the current fiscal. The company’s PV modules are certified to international standards by accredited agencies.
Starting from small applications like solar powered street lighting, rural water pumping systems, railway signaling, offshore drilling platforms, among others, BHEL has supplied and commissioned large size stand-alone as well as grid-interactive solar power plants in a number of cities and remote areas of the country.
The company’s SPV plants have enabled the people of Lakshadweep, Sagar Islands of West Bengal, Andaman & Nicobar Islands, tribal areas of Chhattisgarh, Jharkhand among others to vastly improve their quality of life.
The plant has been set up by BHEL for the state-owned power producer, Karnataka Power Corporation Limited (KPCL), at a cost of Rs 62 crore.
With the commissioning of this unit, the company has set a new record in its solar PV business in a single year, by commissioning 15 Mw of solar power plants in various parts of the country during fiscal 2011-12, marking a significant contribution to the nation’s green initiatives.
For the Shivasamudram project, BHEL’s scope of work included design, manufacture, supply, erection and commissioning of the solar power plant. In addition, BHEL will also operate and maintain the solar power plant for a period of three years.
The solar power plant is operating satisfactorily since synchronising with the main grid and DC power generated by the solar panels is converted into AC by inverters and fed into a 66 kV grid through transformers. Crystalline silicon photovoltaic (C-SI PV) technology has been used for the solar power plant, which is well-proven and has the longest operational experience across the world.
The power plant consists of arrays of photovoltaic panels made of crystalline silicon solar cells that absorb sunlight and convert it into electricity that will be fed into the main grid.
Backed by a vast experience and expertise of nearly three decades in Power Electronics & System integration, BHEL is a leading player in the field of solar photovoltaics, from Solar Cells to System Integration of SPV power plants in India.
The SPV modules are manufactured at its ultra-modern manufacturing facility located at Bangalore. An R&D unit, located in Gurgaon, supports the operations in semi-conductors and solar photovoltaics.
In line with the rapid growth in this field, BHEL is planning to augment its manufacturing facility for Solar PV Modules during the current fiscal. The company’s PV modules are certified to international standards by accredited agencies.
Starting from small applications like solar powered street lighting, rural water pumping systems, railway signaling, offshore drilling platforms, among others, BHEL has supplied and commissioned large size stand-alone as well as grid-interactive solar power plants in a number of cities and remote areas of the country.
The company’s SPV plants have enabled the people of Lakshadweep, Sagar Islands of West Bengal, Andaman & Nicobar Islands, tribal areas of Chhattisgarh, Jharkhand among others to vastly improve their quality of life.
Teva, P&G form JV to set up manufacturing facility in Gujarat
New Delhi: The US-based Procter & Gamble (P&G) and Israel's Teva Pharmaceutical Industries plan to enter India through a joint venture (JV) by setting up their first manufacturing facility at Sanand, Gujarat, with an initial investment of Rs 250 crore (US$ 44.67 million).
The manufacturing facility is planned on 15 acres and is proposed to have two separate lines, one for manufacturing Ayurvedic drugs and another for allopathic medicines. High-tech equipment and adhering to Good Manufacturing Practices (GMP) norms to make products both for Indian and overseas market will be used.
"TPI and P&G joint venture P&G Teva would set up over-the-counter (OTC) drug manufacturing facility at Sanand with an initial investment of US$ 44.67 million," according to H G Kohsia, Commissioner, Food and Drug Control Administration (FDCA), Gujarat.
"The total proposed investment in Gujarat by the venture is around Rs 500 crore (US$ 89.37 million). It would initially hire 500 people, which could go up to 1,000," Kohsia added. In addition, the proposed facility at Sanand would have high-tech equipment and will adhere to Good Manufacturing Practices (GMP) norms to make products both for Indian and overseas market, Mr Koshia said.
A memorandum of understanding (MoU) will be signed with the State Government during the Vibrant Gujarat Global Summit-2013 scheduled in January 2013. NYSE-listed Teva is the top generic pharma company with presence in 60 countries.
The manufacturing facility is planned on 15 acres and is proposed to have two separate lines, one for manufacturing Ayurvedic drugs and another for allopathic medicines. High-tech equipment and adhering to Good Manufacturing Practices (GMP) norms to make products both for Indian and overseas market will be used.
"TPI and P&G joint venture P&G Teva would set up over-the-counter (OTC) drug manufacturing facility at Sanand with an initial investment of US$ 44.67 million," according to H G Kohsia, Commissioner, Food and Drug Control Administration (FDCA), Gujarat.
"The total proposed investment in Gujarat by the venture is around Rs 500 crore (US$ 89.37 million). It would initially hire 500 people, which could go up to 1,000," Kohsia added. In addition, the proposed facility at Sanand would have high-tech equipment and will adhere to Good Manufacturing Practices (GMP) norms to make products both for Indian and overseas market, Mr Koshia said.
A memorandum of understanding (MoU) will be signed with the State Government during the Vibrant Gujarat Global Summit-2013 scheduled in January 2013. NYSE-listed Teva is the top generic pharma company with presence in 60 countries.
Hero MotoCorp to invest Rs 160 crore in the Global Parts Centre in Rajasthan
To be set up with an investment of Rs 160 crore, the Global Part Centre will be spread across 35 acres, said Pawan Munjal, MD & CEO, Hero MotoCorp at the company's Global Supply Chain Partners Conference 2012 in St. Petersburg, Russia.
Over 125 top component supplier of Hero MotoCorp from India, China, Thailand, Japan and Europe participated in the three day global conference held in Russia.
The Global Parts Centre is expected to be operational by Q3 of FY-14 and will initially employ 400 personnel. The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept, said the company in a statement.
"The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational," Munjal said.
The company also informed its supply chain partners that it will set up the fifth plant at Halol in the western India state of Gujarat, in addition to the fourth plant at Neemrana in Rajasthan.
The proposed Global Parts Centre comes close on the heels of HMCL recently announcing an investment of over Rs 2500 crore in setting up two new plants, expanding capacity at existing plants and in building an integrated R&D centre (at Kukas in Rajasthan). With this expansion, total installed capacity of the company would be touching more than nine million units in two years' time - which is in line with the stated objective of reaching 10 million units in the next five years.
The proposed new state-of-the-art integrated R&D centre at Kukas will be set-up over an area of 250-acre and the centre will be the largest two-wheeler R&D set-up in the country, and will employ over 500 engineers.
India Inc keen on Special Economic Zone space in Bangladesh
Confederation of Indian Industry (CII) president Adi Godrej led a delegation of 15 CEOs to Dhaka this week, where meetings were held with Bangladesh's ministers for industry, finance and foreign affairs as well as its central bank governor and industry chambers.
"We have suggested that Bangladesh set up an SEZ for Indian firms that see a big scope for investments in the country across sectors such as oil and gas, infrastructure, consumer and agricultural goods. This could help tap the true potential of bilateral trade and investment flows," Godjrej told ET.
While Bangladesh has responded positively to the idea, most officials and industry leaders that met the Indian delegation expressed unhappiness at India's inability to seal the proposed bilateral Teesta river water-sharing treaty. Godrej assured Dhaka that the industry body would take up the issue with the Indian government.
To help deal with operational issues that arise in Indo-Bangladesh trade and investments, the CII has decided to open a permanent office in Dhaka and put in place an India-Bangladesh CEOs' forum. Similar industry interaction frameworks have been put in place by India with CEOs from the United States, United Kingdom and Africa.
India also raised problems faced by its companies on Bangladeshi soil with regards to remittance and repatriation of income.
"There are practical issues with the repatriation of income from Bangladesh and remitting salaries to Indian executives working there," Godrej said.
"The country's central bank has promised to look into resolving them positively," he said.Bangladesh expressed concerns about the trade imbalance it faces with India and said that non-tariff barriers imposed by India were restricting its opportunities for exports.
"India has already allowed zero-duty imports for Bangladesh's products. We will request the government to review some of the non-tariff barriers cited by Dhaka," Godrej said.
Eicher Motors signs strategic joint venture with Polaris Industries
Mumbai: Eicher Motors has signed a strategic joint venture agreement with US based powersports major, Polaris Industries, to set up a greenfield project in the automotive sector.
The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.
The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility, with production expected to start in 2015.
Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crores.
"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.
Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment, Lal said.
"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe." said Scott W Wine, CEO, Polaris Industries.
The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.
The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility, with production expected to start in 2015.
Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crores.
"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.
Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment, Lal said.
"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe." said Scott W Wine, CEO, Polaris Industries.
ONGC, Australian varsity ink pact to tap unconventional oil resources
Hyderabad: ONGC and an Australian University have set their eyes on tapping oil resources in some tough and challenging locales in India.
These are called basement reservoirs. The research initiative will evaluate the potential of these unconventional oil resources.
The School of Petroleum Engineering at the UNSW (University of New South Wales) and the ONGC have forged a research agreement.
The project will assess the feasibility of recovering hydrocarbon fuel from these hard to access, offshore geological structures called basement reservoirs. ONGC is keen on its Mumbai offshore basin, a report from the University said.
The $2.05-million project would be executed over the next two-and-a-half years. This is the fourth major project between UNSW and ONGC since first signing a memorandum of understanding in 2002.
“These are very hard rocks that contain fractures, which in turn, contain oil that is very difficult to extract,” explains Professor Val Pinczewski, Head of the School of Petroleum Engineering. “This is an important partnership for UNSW that has grown with time,” says Mr Pinczewski.
After developing suitable mathematical models, experiments with rock samples provided by ONGC will be conducted on field to test how much oil is recoverable.
These are called basement reservoirs. The research initiative will evaluate the potential of these unconventional oil resources.
The School of Petroleum Engineering at the UNSW (University of New South Wales) and the ONGC have forged a research agreement.
The project will assess the feasibility of recovering hydrocarbon fuel from these hard to access, offshore geological structures called basement reservoirs. ONGC is keen on its Mumbai offshore basin, a report from the University said.
The $2.05-million project would be executed over the next two-and-a-half years. This is the fourth major project between UNSW and ONGC since first signing a memorandum of understanding in 2002.
“These are very hard rocks that contain fractures, which in turn, contain oil that is very difficult to extract,” explains Professor Val Pinczewski, Head of the School of Petroleum Engineering. “This is an important partnership for UNSW that has grown with time,” says Mr Pinczewski.
After developing suitable mathematical models, experiments with rock samples provided by ONGC will be conducted on field to test how much oil is recoverable.
United Group opens design institute in Ahmedabad
Ahmedabad: Filling the gap in the design talent pool for industrial and non-industrial sector, Kolkata-headquartered United Group on Tuesday opened United Institute of Design in Ahmedabad.
Affiliated to the Gulbarga University, the institute will contribute in shaping the skills of talented designers in various design disciplines. The new campus located in Karnavati Knowledge Village, on the outskirts of Ahmedabad, has commenced from Tuesday.
United Institute of Design will offer four-year full-time degree programme in five disciplines of design namely fashion design, lifestyle and accessories design, product design, interior design, fine arts (visual communications & graphic design) and post graduation in fashion retail management area.
The institute will be mentored by alumni of National Institute of Design (NID), Centre for Environmental Planning and Technology (CEPT) University and Faculty of Fine Arts, M.S.University Vadodara. United Group MD Ritesh Hada said the institute would attempt to bridge the gap in the availability of design talent due to handful design institutes and the need from the industry.
Affiliated to the Gulbarga University, the institute will contribute in shaping the skills of talented designers in various design disciplines. The new campus located in Karnavati Knowledge Village, on the outskirts of Ahmedabad, has commenced from Tuesday.
United Institute of Design will offer four-year full-time degree programme in five disciplines of design namely fashion design, lifestyle and accessories design, product design, interior design, fine arts (visual communications & graphic design) and post graduation in fashion retail management area.
The institute will be mentored by alumni of National Institute of Design (NID), Centre for Environmental Planning and Technology (CEPT) University and Faculty of Fine Arts, M.S.University Vadodara. United Group MD Ritesh Hada said the institute would attempt to bridge the gap in the availability of design talent due to handful design institutes and the need from the industry.
Abhijeet Power, CLSA among 14 FDI proposals cleared
New Delhi: The Government has given a green signal to a Rs 674-crore foreign investment proposal by Abhijeet Power Ltd and another CLSA Singapore’s proposal to invest Rs 225 crore in the country.
These are among the 14 foreign direct investment proposals approved by the Government amounting to Rs 1,584.11 crore.
According to an official statement, Bajaj Finserv Ltd’s Rs 100-crore proposal relating to issue and allotment of equity shares to carry out business relating to NBFC activities also received the Government’s approval.
FIPB deferred 15 proposals and rejected seven. Among those rejected include Zara Holding’s proposal to set up joint venture with 51 per cent foreign equity participation for single brand retail. Appu Ghar Holdings proposal to make downstream investments was also turned down.
Among the proposals deferred include NYK Line Ltd setting up a limited liability partnership by indirect investment and Vyome Biosciences proposal to infuse foreign equity.
Three proposals have been advised that FIPB approval is not required. These include retailer Fabindia Overseas’ proposal to change shareholding structure of existing foreign investors within the approved holding limit of 51 per cent.
These are among the 14 foreign direct investment proposals approved by the Government amounting to Rs 1,584.11 crore.
According to an official statement, Bajaj Finserv Ltd’s Rs 100-crore proposal relating to issue and allotment of equity shares to carry out business relating to NBFC activities also received the Government’s approval.
FIPB deferred 15 proposals and rejected seven. Among those rejected include Zara Holding’s proposal to set up joint venture with 51 per cent foreign equity participation for single brand retail. Appu Ghar Holdings proposal to make downstream investments was also turned down.
Among the proposals deferred include NYK Line Ltd setting up a limited liability partnership by indirect investment and Vyome Biosciences proposal to infuse foreign equity.
Three proposals have been advised that FIPB approval is not required. These include retailer Fabindia Overseas’ proposal to change shareholding structure of existing foreign investors within the approved holding limit of 51 per cent.
Govt plans business index for industry
Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
Govt plans business index for industry
Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
Tuesday, July 24, 2012
Juice production picks up in the year 2012: CMIE
Chennai: Fruit juice production has witnessed a smart recovery since its sudden drop in production last June, shows data collected by the Centre for Monitoring Indian Economy (CMIE). Back then, fruit juice production suddenly dropped from a high of 6.77 crore litre to nearly half that amount at 3.41 crore litre. Since then, though, juice production has been following more or less an upward curve with consistent increases right through since the beginning of this year. Juice production in January 2012 climbed to 2.04 crore litre, up more than 50% from the December 2011 tally of 1.32 crore litre.
February saw production zoom upwards once again by more than 50% to hit 3.09 crore litre, says CMIE. March and April clocked even higher numbers - 4.64 crore litre and a huge6.09 crore litre respectively. The April tally in fact was the closest the industry has come to the May 2011 high and the second highest tally in 14 months. Though juice production in May 2012 is lower than April, at 5.79 crore litre, it is still the third highest since last March.
Part of the skew can be contributed to seasonality of the raw material and the fact that fruit juice consumption typically hits a peak in summer months so production peaks accordingly. That explains why October and November are dull months for juice production - a trend borne out in 2011. July and August, being bang in the middle of the rainy season, are also dull months for juice consumption and therefore juice production. Fruit pulp production also follows a similar pattern, peaking at the height of summer when demand for fruit juice is the highest. Production jumped in May 2011, zoomed upwards to a yearly high in June, remained high in July and then petered off only to pick up in May 2012. Of course the onset and volume of the monsoon also play a part and fruit pulp production this year will doubtless be impacted by the patchy rains.
February saw production zoom upwards once again by more than 50% to hit 3.09 crore litre, says CMIE. March and April clocked even higher numbers - 4.64 crore litre and a huge6.09 crore litre respectively. The April tally in fact was the closest the industry has come to the May 2011 high and the second highest tally in 14 months. Though juice production in May 2012 is lower than April, at 5.79 crore litre, it is still the third highest since last March.
Part of the skew can be contributed to seasonality of the raw material and the fact that fruit juice consumption typically hits a peak in summer months so production peaks accordingly. That explains why October and November are dull months for juice production - a trend borne out in 2011. July and August, being bang in the middle of the rainy season, are also dull months for juice consumption and therefore juice production. Fruit pulp production also follows a similar pattern, peaking at the height of summer when demand for fruit juice is the highest. Production jumped in May 2011, zoomed upwards to a yearly high in June, remained high in July and then petered off only to pick up in May 2012. Of course the onset and volume of the monsoon also play a part and fruit pulp production this year will doubtless be impacted by the patchy rains.
India gets $5 million in first QFI investment; Kotak Mahindra Bank seals deal for US-based client
New Delhi: India has received its first investment through the qualified framework investor (QFI) route, putting an end to doubts that the country's attempt to get investors to buy shares directly will be a non-starter.
Kotak Mahindra Bank has concluded the deal worth $5 million for a US-based client, said a finance ministry official.
The finance ministry expects the scheme to attract investment worth about $30 billion over next 15-18 months, helping the country fund a chunk of the current account deficit pegged at 4.2% of GDP in 2011-12.
The finance ministry had held extensive road shows in five countries in the Gulf region--Riyadh, Dubai, Muscat, Kuwait and Bahrain - to project India as the incredible investment destination for wealthy investors. "There is tremendous interest in this scheme...We expect it to get investment worth 30-40 billion dollar over next 2 years," he said.
The ministry is now working on all tax related issues with regard to the scheme and will issue a detailed clarification in a fortnight, the official said.
Kotak Mahindra Bank has concluded the deal worth $5 million for a US-based client, said a finance ministry official.
The finance ministry expects the scheme to attract investment worth about $30 billion over next 15-18 months, helping the country fund a chunk of the current account deficit pegged at 4.2% of GDP in 2011-12.
The finance ministry had held extensive road shows in five countries in the Gulf region--Riyadh, Dubai, Muscat, Kuwait and Bahrain - to project India as the incredible investment destination for wealthy investors. "There is tremendous interest in this scheme...We expect it to get investment worth 30-40 billion dollar over next 2 years," he said.
The ministry is now working on all tax related issues with regard to the scheme and will issue a detailed clarification in a fortnight, the official said.
Rural India epicentre of the India growth story: HUL
Mumbai: Despite global commodity prices coming down, consumer goods maker Hindustan Unilever (HUL) is unlikely to pass on the benefits to the consumers soon.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
RBI eases derivative contract norm
Mumbai: Banks need not classify hedging of derivative contracts that are terminated partially or fully as restructured accounts. The move, announced by the Reserve Bank of India (RBI) on Monday, would ease banks’ provisioning burden.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
Pearson and Government of Assam announces initiative for vocational training
New Delhi: The Government of Assam (GoA) and education services provider Pearson have announced a joint initiative to provide vocational skills training to school students in Assam, the company said in a press release.
This public-private partnership will serve as a platform for the introduction of the national vocational education qualification framework, a national program to integrate skills, training and qualifications in schools.
Under this initiative, Pearson will set up vocational skills centers in 10 selected government schools, initially offering training in streams like retail and computer hardware and IT. The courses will be introduced for students in standard IX in August 2012, before moving into higher classes with a wider portfolio.
"We are grateful for the opportunity to work collaboratively with GoA. We believe that young people in Assam deserve to be fully prepared for the challenges of an incredibly different and dynamic world of work and our common endeavor will be to achieve that objective," said Khozem Merchant, Pearson India in a statement.
The program curriculum will be designed and administered by two Pearson companies: IndiaCan, and Edexcel, the UK based qualification awarding body.
The skills courses will be held in classrooms and learning labs presided over by trainers especially prepared for the programme. The curriculum will incorporate audio-visual aids, and includes lectures by industry experts and visits to factories to familiarize students with real working situations. The skills training sessions will be held after school hours.
This public-private partnership will serve as a platform for the introduction of the national vocational education qualification framework, a national program to integrate skills, training and qualifications in schools.
Under this initiative, Pearson will set up vocational skills centers in 10 selected government schools, initially offering training in streams like retail and computer hardware and IT. The courses will be introduced for students in standard IX in August 2012, before moving into higher classes with a wider portfolio.
"We are grateful for the opportunity to work collaboratively with GoA. We believe that young people in Assam deserve to be fully prepared for the challenges of an incredibly different and dynamic world of work and our common endeavor will be to achieve that objective," said Khozem Merchant, Pearson India in a statement.
The program curriculum will be designed and administered by two Pearson companies: IndiaCan, and Edexcel, the UK based qualification awarding body.
The skills courses will be held in classrooms and learning labs presided over by trainers especially prepared for the programme. The curriculum will incorporate audio-visual aids, and includes lectures by industry experts and visits to factories to familiarize students with real working situations. The skills training sessions will be held after school hours.
With 54% green cover, Gandhinagar India's tree capital
Ahmedabad: Gujarat's capital - Gandhinagar - could well be India's tree capital. The latest figures of a census conducted by the state government show that 53.9% of its 5,700-hectare area is covered with trees.
Effectively, there are 416 trees for every 100 people in the city. This is more than any other city in the country. The census was conducted by the social forestry department along with various municipal corporations and urban development authorities.
Drive 35 km out of Gandhinagar and the scenario changes drastically in Ahmedabad where there are just 11 trees for every 100 people. While there are as many as 8.66 lakh trees in the state capital, the population is just 2.08 lakh people. At this rate, there is 15 sq m land of trees for every person. The smaller municipal corporations in the state like Vadodara, Junagadh and Bhavnagar have better average than Ahmedabad.
According to Forest Survey of India, Bangalore, Chandigarh and Delhi have a green cover of 18.9%, 14.9% and 11.9%, respectively.
H S Singh, additional principal chief conservator of forests, social forestry, said, "Gandhinagar's tree cover is comparable with the best in the world. Atlanta in the US, for instance, is considered among the greenest cities globally and has exactly the same percentage of land under tree cover as Gandhinagar's."
"Gandhinagar was just a barren piece of land when work first started to turn it into a state capital in 1965," Singh added. "The social forestry division was given the task of greening the area. Ever since, more than 35 lakh trees have been planted and their survival rate has been very high. Also, in 1991 land reserved for development was used for plantation, making the city one of the greenest."
The eight municipal corporations in Gujarat have 33.01 lakh trees over an area of 1.33 lakh hectares. The overall tree density in the municipal corporations was just 22 trees for every 100 persons on an average.
Effectively, there are 416 trees for every 100 people in the city. This is more than any other city in the country. The census was conducted by the social forestry department along with various municipal corporations and urban development authorities.
Drive 35 km out of Gandhinagar and the scenario changes drastically in Ahmedabad where there are just 11 trees for every 100 people. While there are as many as 8.66 lakh trees in the state capital, the population is just 2.08 lakh people. At this rate, there is 15 sq m land of trees for every person. The smaller municipal corporations in the state like Vadodara, Junagadh and Bhavnagar have better average than Ahmedabad.
According to Forest Survey of India, Bangalore, Chandigarh and Delhi have a green cover of 18.9%, 14.9% and 11.9%, respectively.
H S Singh, additional principal chief conservator of forests, social forestry, said, "Gandhinagar's tree cover is comparable with the best in the world. Atlanta in the US, for instance, is considered among the greenest cities globally and has exactly the same percentage of land under tree cover as Gandhinagar's."
"Gandhinagar was just a barren piece of land when work first started to turn it into a state capital in 1965," Singh added. "The social forestry division was given the task of greening the area. Ever since, more than 35 lakh trees have been planted and their survival rate has been very high. Also, in 1991 land reserved for development was used for plantation, making the city one of the greenest."
The eight municipal corporations in Gujarat have 33.01 lakh trees over an area of 1.33 lakh hectares. The overall tree density in the municipal corporations was just 22 trees for every 100 persons on an average.
Govt approves ninth manufacturing zone at Nagpur
New Delhi: The Minister of Commerce, Industry and Textiles Mr Anand Sharma announced the plan to set up of India’s ninth National Investment and Manufacturing Zone (NIMZ) at Nagpur on Saturday.
The proposed NIMZ, the third in Maharashtra, would be situated in Kuhi and Umred Taluka of Nagpur district on 6,280 hectares, an official release said.
Further, it is likely to attract investment of Rs 25,000 crore and provide direct and indirect employment to about 2,60,000 people, the statement added.
“I am happy to inform that ‘in-principle’ approval has been accorded to the proposal given its significance,” Mr Sharma said, after inaugurating the National Institute of Intellectual Property Management (NIIPM) in Nagpur.
Later in the day, the Minister also announced that the Technology Upgradation Fund Scheme for the textile industry has been extended for the 12th Five Year Plan.
“There will be more allocation under the 12th Plan than under the 11th Plan, so those in textiles sector must feel assured that the Government is conscious what their needs are,” he said.
The proposed NIMZ, the third in Maharashtra, would be situated in Kuhi and Umred Taluka of Nagpur district on 6,280 hectares, an official release said.
Further, it is likely to attract investment of Rs 25,000 crore and provide direct and indirect employment to about 2,60,000 people, the statement added.
“I am happy to inform that ‘in-principle’ approval has been accorded to the proposal given its significance,” Mr Sharma said, after inaugurating the National Institute of Intellectual Property Management (NIIPM) in Nagpur.
Later in the day, the Minister also announced that the Technology Upgradation Fund Scheme for the textile industry has been extended for the 12th Five Year Plan.
“There will be more allocation under the 12th Plan than under the 11th Plan, so those in textiles sector must feel assured that the Government is conscious what their needs are,” he said.
Pranab Mukherjee elected 13th President of India
New Delhi: Pranab Mukherjee was on Sunday elected the 13th President of India, capping the long innings of the veteran Congress leader and the party's chief troubleshooter over the past eight years. The former finance minister and the candidate of the ruling UPA, who garnered 69.3% votes, defeated his rival PA Sangma, the candidate backed by AIADMK, BJD and NDA (minus Shiv Sena and JD-U), by a bigger than expected margin.
Mukherjee's victory, though expected, turned out to be sweeter for Congress because not only did it end up with a show of a united alliance but also managed to drill a few more holes into the rival camp. While Congress expected its candidate to win 102 votes in BJP-ruled Karnataka, Mukherjee ended up with 117 votes in the 224-member assembly as a few BJP members appeared to have voted against the party line. Sangma got 103 votes, while three votes were declared invalid and one MLA did not vote.
"I would like to thank people of this great country for conferring this distinction by electing me to the high office," Mukherjee said after results. "Now, they have entrusted me with the responsibility to protect, to defend and to preserve the Constitution as President of the Republic. I will try to justify, in a modest way as I can, to be trustworthy to the people."
Mukherjee, who was leader of the Lok Sabha for the past eight years and held the portfolios of external affairs and defence, besides finance, in his career spanning more than four decades, will be sworn in as President on Wednesday. The Chief Justice of India will administer the oath of office to the President-elect, who will take over from Pratibha Patil, at a ceremonial function at 11.30 am in the Central Hall of Parliament.
Sangma while congratulating his rival alleged that the government had induced opposition-ruled states through financial packages to garner support for Mukherjee. "We need election code of conduct for presidential poll," he said. Sangma said the country had lost the opportunity to support the tribals of India.
Mukherjee won 69.3% votes in all. Of the 748 members of Parliament who voted, Mukherjee won 527 votes with a value of 3,73,116 while Sangma got 206 votes with a value of 1,45,848. Fifteen votes, including that of SP chief Mulayam Singh Yadav, were declared invalid. Of these, nine would have gone in favour of Mukherjee.
Besides Congress and its partners in the ruling coalition, Mukherjee won the support of UPA's outside supporters, including SP and BSP, and even a few opposition parties, such as CPM, JD(U), Shiv Sena, AIFB and JMM.
Sangma scored in BJP-ruled states, including Gujarat, Madhya Pradesh, Chhattisgarh, Himachal Pradesh and Goa. However, in Jharkhand, where BJP shares power with JMM, Sangma got fewer than expected votes of only 20 MLAs. Despite campaigning as a tribal candidate, Sangma also lost out to Mukherjee in the northeastern states, including his home state of Meghalaya. He drew a blank in Nagaland, where 58 MLAs voted for Mukherjee. In Mizoram, Mukherjee got 32 votes while Sangma polled 7; in Manipur, Mukherjee won 58 votes compared with just one for Sangma; Meghalaya yielded 34 votes for Mukherjee while Sangma got 23 votes.
Mukherjee swept Kerala and his home state of West Bengal. "In the last one month I have been privileged to visit a large number of states...The warmth of the ordinary people was really remarkable. I have received much more from the people of this great country than I have given," he said.
Mukherjee's victory, though expected, turned out to be sweeter for Congress because not only did it end up with a show of a united alliance but also managed to drill a few more holes into the rival camp. While Congress expected its candidate to win 102 votes in BJP-ruled Karnataka, Mukherjee ended up with 117 votes in the 224-member assembly as a few BJP members appeared to have voted against the party line. Sangma got 103 votes, while three votes were declared invalid and one MLA did not vote.
"I would like to thank people of this great country for conferring this distinction by electing me to the high office," Mukherjee said after results. "Now, they have entrusted me with the responsibility to protect, to defend and to preserve the Constitution as President of the Republic. I will try to justify, in a modest way as I can, to be trustworthy to the people."
Mukherjee, who was leader of the Lok Sabha for the past eight years and held the portfolios of external affairs and defence, besides finance, in his career spanning more than four decades, will be sworn in as President on Wednesday. The Chief Justice of India will administer the oath of office to the President-elect, who will take over from Pratibha Patil, at a ceremonial function at 11.30 am in the Central Hall of Parliament.
Sangma while congratulating his rival alleged that the government had induced opposition-ruled states through financial packages to garner support for Mukherjee. "We need election code of conduct for presidential poll," he said. Sangma said the country had lost the opportunity to support the tribals of India.
Mukherjee won 69.3% votes in all. Of the 748 members of Parliament who voted, Mukherjee won 527 votes with a value of 3,73,116 while Sangma got 206 votes with a value of 1,45,848. Fifteen votes, including that of SP chief Mulayam Singh Yadav, were declared invalid. Of these, nine would have gone in favour of Mukherjee.
Besides Congress and its partners in the ruling coalition, Mukherjee won the support of UPA's outside supporters, including SP and BSP, and even a few opposition parties, such as CPM, JD(U), Shiv Sena, AIFB and JMM.
Sangma scored in BJP-ruled states, including Gujarat, Madhya Pradesh, Chhattisgarh, Himachal Pradesh and Goa. However, in Jharkhand, where BJP shares power with JMM, Sangma got fewer than expected votes of only 20 MLAs. Despite campaigning as a tribal candidate, Sangma also lost out to Mukherjee in the northeastern states, including his home state of Meghalaya. He drew a blank in Nagaland, where 58 MLAs voted for Mukherjee. In Mizoram, Mukherjee got 32 votes while Sangma polled 7; in Manipur, Mukherjee won 58 votes compared with just one for Sangma; Meghalaya yielded 34 votes for Mukherjee while Sangma got 23 votes.
Mukherjee swept Kerala and his home state of West Bengal. "In the last one month I have been privileged to visit a large number of states...The warmth of the ordinary people was really remarkable. I have received much more from the people of this great country than I have given," he said.
Friday, July 20, 2012
Strides Arcolab unit gets USFDA nod for anti-cancer injection
angalore: Onco Therapies, a wholly owned subsidiary of pharma company Strides Arcolab, has received two US FDA (Food and Drug Administration) approvals for ‘Fluorouracil Injection USP’.
Fluorouracil is part of the oncology portfolio licensed to Pfizer for the US market and expected to be launched shortly, a press statement said.
Fluorouracil is a chemotherapy drug which interferes with cells making DNA and RNA, and stops the growth of cancer cells. It is used to treat several types of cancer including colon, rectum, and head and neck cancers.
According to the statement, Fluorouracil is among the products in the drug shortage list of USFDA. According to IMS data, the US market for generic Fluorouracil is approximately $14 million.
Fluorouracil is part of the oncology portfolio licensed to Pfizer for the US market and expected to be launched shortly, a press statement said.
Fluorouracil is a chemotherapy drug which interferes with cells making DNA and RNA, and stops the growth of cancer cells. It is used to treat several types of cancer including colon, rectum, and head and neck cancers.
According to the statement, Fluorouracil is among the products in the drug shortage list of USFDA. According to IMS data, the US market for generic Fluorouracil is approximately $14 million.
Pratt Whitney Opens full-time research office at Indian Institute of Science (IISc), Bangalore
New Delhi: Pratt & Whitney, a United Technologies company, opened an office at the Indian Institute of Science to increase its long-term commitment to conduct advanced research in gas turbine jet engine technology in India. The office will support a full-time endowed professorship in gas turbine engineering at the institute and visiting Pratt & Whitney employees and executives who conduct research at the institute. The company recently increased its funding commitment to the professorship to make the chair self-sustaining and will announce a full-time professor in the near future. The company works with the IISc on advanced research initiatives that support the design and development of more efficient and environmentally friendly gas turbine engines. The work is focused on advanced research in propulsion system technology.
"IISc has outstanding technical capabilities that complement our research needs. This is an excellent opportunity for Pratt & Whitney to partner with the institute to develop advanced technologies for future generations of our environmentally friendly propulsion systems," said Al Brockett, VP, Pratt & Whitney Engineering-Module Centers. "Our research at the institute further strengthens the relationships between Pratt & Whitney, United Technologies, the Indian educational system and the Indian government." He added.
The research will help Pratt & Whitney develop advanced technologies for future generations of its new PurePower geared Turbofan engine, which sets a new standard of performance for aircraft engines with double-digit reductions in fuel consumption, emissions, engine noise, and operating costs for airline customers. Pratt & Whitney recently signed agreements with two airlines in India - IndiGoand GoAir - to provide PurePower engines for their Airbus A320neo family aircraft. It is is supplying F117 engines to the IAF to power Boeing C-17 Globemaster III airlifters purchased by India.
"By opening a full-time office at the institute and increasing its long-term commitment to the Indian Institute of Science, Pratt & Whitney will have a visible presence here to attract talent to the gas turbine engine field. We expect to be in a position to train and recommend future engineers to key Indian R&D organizations, national laboratories and business partners, including Infotech," said Prof BN Raghunandan, former Chairman of the department of aerospace engineering, IISc.
"IISc has outstanding technical capabilities that complement our research needs. This is an excellent opportunity for Pratt & Whitney to partner with the institute to develop advanced technologies for future generations of our environmentally friendly propulsion systems," said Al Brockett, VP, Pratt & Whitney Engineering-Module Centers. "Our research at the institute further strengthens the relationships between Pratt & Whitney, United Technologies, the Indian educational system and the Indian government." He added.
The research will help Pratt & Whitney develop advanced technologies for future generations of its new PurePower geared Turbofan engine, which sets a new standard of performance for aircraft engines with double-digit reductions in fuel consumption, emissions, engine noise, and operating costs for airline customers. Pratt & Whitney recently signed agreements with two airlines in India - IndiGoand GoAir - to provide PurePower engines for their Airbus A320neo family aircraft. It is is supplying F117 engines to the IAF to power Boeing C-17 Globemaster III airlifters purchased by India.
"By opening a full-time office at the institute and increasing its long-term commitment to the Indian Institute of Science, Pratt & Whitney will have a visible presence here to attract talent to the gas turbine engine field. We expect to be in a position to train and recommend future engineers to key Indian R&D organizations, national laboratories and business partners, including Infotech," said Prof BN Raghunandan, former Chairman of the department of aerospace engineering, IISc.
New body for faster clearance of infra projects
New Delhi: To expedite project implementation, the government on Thursday announced a single-window mechanism under the Cabinet secretary for review and issue of clearances associated with major projects.
After putting in place a problem-resolution mechanism for infrastructure projects and an investment tracking system for projects over Rs 1,000 crore directly under the Prime Minister’s Office (PMO), the government has decided to set up a project clearance board, on the lines of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet secretary, for review and issue of one-time clearances, including security clearance.
The Board will include representatives from the ministries of home, defence, environment and forests, commerce, coal, departmenmt of space and other infrastructure and energy-related ministries and departments. The decision was taken at a meeting held at the PMO to review the status of clearances of oil and gas blocks awarded under the New Exploration Licensing Policy.
The Board will meet monthly. Ministries would report to the Board on the status of clearances after following their internal processes.
For the petroleum and natural gas sector, the special cell for clearances being set up in the Directorate General of Hydrocarbons will act as the secretariat. A common mechanism for all sectors will be evolved soon and the Board set up in the coming weeks, said a government.
Explaining the need for such an entity, the PMO said one of the biggest hurdles to speedy implementation of projects was the delays faced by project implementing agencies and private companies with concessions, in obtaining security-related clearances from diverse agencies.
“For example, progress in exploration work in over 70 oil blocks awarded under Nelp has slowed due to lack of clearances. There are similar problems in other areas such as ports and infrastructure sectors,” it stressed.
There was a need to have an institutionalised mechanism for issuing time-bound clearances on the lines of the model for clearing foreign investments in the form of the FIPB, where foreign investment clearances were given through regular meetings, outlined the PMO. “A need for a similar mechanism was felt for other clearances, so that the issue of delayed clearances is resolved.”
After putting in place a problem-resolution mechanism for infrastructure projects and an investment tracking system for projects over Rs 1,000 crore directly under the Prime Minister’s Office (PMO), the government has decided to set up a project clearance board, on the lines of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet secretary, for review and issue of one-time clearances, including security clearance.
The Board will include representatives from the ministries of home, defence, environment and forests, commerce, coal, departmenmt of space and other infrastructure and energy-related ministries and departments. The decision was taken at a meeting held at the PMO to review the status of clearances of oil and gas blocks awarded under the New Exploration Licensing Policy.
The Board will meet monthly. Ministries would report to the Board on the status of clearances after following their internal processes.
For the petroleum and natural gas sector, the special cell for clearances being set up in the Directorate General of Hydrocarbons will act as the secretariat. A common mechanism for all sectors will be evolved soon and the Board set up in the coming weeks, said a government.
Explaining the need for such an entity, the PMO said one of the biggest hurdles to speedy implementation of projects was the delays faced by project implementing agencies and private companies with concessions, in obtaining security-related clearances from diverse agencies.
“For example, progress in exploration work in over 70 oil blocks awarded under Nelp has slowed due to lack of clearances. There are similar problems in other areas such as ports and infrastructure sectors,” it stressed.
There was a need to have an institutionalised mechanism for issuing time-bound clearances on the lines of the model for clearing foreign investments in the form of the FIPB, where foreign investment clearances were given through regular meetings, outlined the PMO. “A need for a similar mechanism was felt for other clearances, so that the issue of delayed clearances is resolved.”
SEBI sets guidelines for offer-for-sale by promoters
Mumbai: The Securities and Exchange Board of India has laid down comprehensive guidelines for promoters seeking to offload stake via offer-for-sale (OFS).
The guidelines incorporate all representations and suggestions received from marketmen.
Thursday’s OFS guidelines replace all the three SEBI circulars dated February 1, February 23 and February 27.
Norms
SEBI has mandated that the OFS facility would be available only on the NSE and the BSE.
OFS can be used by promoters of companies who wish to attain minimum public shareholding of 25 per cent by June 2013.
Eligible promoters should not have bought or sold the company shares 12 weeks before and should not buy or sell shares 12 weeks after the OFS.
Within this cooling off period of plus-12 weeks, promoters can sell through OFS or institutional placement programme (IPP) with a gap of two weeks between successive offers, said SEBI.
This is also applicable to promoters who had already offered shares through OFS/IPP.
All non-promoter entities are eligible to buy under the OFS. The offer size will be a minimum of Rs 25 crore or that amount which enables the promoter to achieve a minimum public shareholding of 25 per cent in a single tranche.
The advertisement and offer expenses related to the OFS shall be borne by the seller (promoter).
No part cancellation
OFS can be withdrawn before opening and another offer can be made by the promoter only after a cooling off period of 10 trading days.
The seller cannot cancel the offer when bidding is on. In case of insufficient demand at or above the floor price, the seller has the choice to either conclude the offer or cancel it in full.
The seller may also choose to conclude or fully cancel the offer in case of default in settlement.
Floor price is the minimum price at which the seller wishes to sell a share.
SEBI has directed exchanges to amend by-laws rules and regulations; notify member brokers and disseminate the circular on their Web sites.
The guidelines incorporate all representations and suggestions received from marketmen.
Thursday’s OFS guidelines replace all the three SEBI circulars dated February 1, February 23 and February 27.
Norms
SEBI has mandated that the OFS facility would be available only on the NSE and the BSE.
OFS can be used by promoters of companies who wish to attain minimum public shareholding of 25 per cent by June 2013.
Eligible promoters should not have bought or sold the company shares 12 weeks before and should not buy or sell shares 12 weeks after the OFS.
Within this cooling off period of plus-12 weeks, promoters can sell through OFS or institutional placement programme (IPP) with a gap of two weeks between successive offers, said SEBI.
This is also applicable to promoters who had already offered shares through OFS/IPP.
All non-promoter entities are eligible to buy under the OFS. The offer size will be a minimum of Rs 25 crore or that amount which enables the promoter to achieve a minimum public shareholding of 25 per cent in a single tranche.
The advertisement and offer expenses related to the OFS shall be borne by the seller (promoter).
No part cancellation
OFS can be withdrawn before opening and another offer can be made by the promoter only after a cooling off period of 10 trading days.
The seller cannot cancel the offer when bidding is on. In case of insufficient demand at or above the floor price, the seller has the choice to either conclude the offer or cancel it in full.
The seller may also choose to conclude or fully cancel the offer in case of default in settlement.
Floor price is the minimum price at which the seller wishes to sell a share.
SEBI has directed exchanges to amend by-laws rules and regulations; notify member brokers and disseminate the circular on their Web sites.
Anand Sharma annouces Rs 70,000 crore infrastructure projects in Haryana
Chandigarh: Union Minister for Commerce, Industry and Textiles, Anand Sharma announced investment of Rs 70,000 crore entailed in projects coming up in Haryana including National Manufacturing Investment Zone at Manesar-Bawal Investment Region, setting up of a National Institute of Design at Kurukshetra, National Institute of Fashion Technology (NIFT) in Panchkula and an International Horticulture Hub, Gannaur.
"The progress in Manesar-Bawal region will see total infrastructure investments of over Rs 71,000 crore and total estimated investments in the region will be in the range of 2.5 lakh crores," the Union minister said after meeting heads of the state in Haryana and Punjab. He said that the over the next 30 years it would provide employment to over 28 lakh people.
He said that Delhi Mumbai Industrial Corridor project has reached implementation stage. "The infrastructure project would be get fund of Rs 18,500 crore from the Government of India, JBIC has forwarded a fund of $4.5 billion," the minister said.
"The states have initiated measures like zoning of land for the project. Manesar-Bawal Investment Region has been declared as one of the first eight National Manufacturing Investment Zones to be developed as green field integrated industrial townships. "The National Manufacturing Zones would create 100 million jobs in one decade," he said.
A state of the art multi-modal logistic hub will be established near Panchgaon Chowk at an estimated cost of nearly Rs 2000 crores of which Government of India will contribute Rs.300 crore. This logistic hub will transform Haryana into a regional logistics centre for the entire northern region.
A Mass Rapid Transit System will be established in the Manesar-Bawal investment region at a projected cost of Rs.13580 crores. This will be developed in PPP mode. The Minister had a high level review meeting on the project implementation, land acquisition and a joint centre-state task force for monitoring the timelines of the project that has been agreed upon to ensure that the road map drawn for project implementation is followed through.
He said that the Government of India would support the establishment of a Global City spread over a large area of land which will be developed as a hi-tech city with a central business district, finance centre and an integrated exhibition-cum convention facility at Garhi-Harsaru.
The Government of India will establish a National Institute of Design at Kurukshetra for which the State Government has offered land. This Institute will be modeled on the NID, Ahmedabad and will be amongst one of the four national institute being established across the country.
The Government of India will provide Rs.135 crores for the entire project. He said that the Government will support an International Horticulture Hub, Gannaur for which a detailed project report has been prepared. He said that a hub for perishable with cold storage and related infrastructure would be set up at Chandigarh -Mohali airport.
"The progress in Manesar-Bawal region will see total infrastructure investments of over Rs 71,000 crore and total estimated investments in the region will be in the range of 2.5 lakh crores," the Union minister said after meeting heads of the state in Haryana and Punjab. He said that the over the next 30 years it would provide employment to over 28 lakh people.
He said that Delhi Mumbai Industrial Corridor project has reached implementation stage. "The infrastructure project would be get fund of Rs 18,500 crore from the Government of India, JBIC has forwarded a fund of $4.5 billion," the minister said.
"The states have initiated measures like zoning of land for the project. Manesar-Bawal Investment Region has been declared as one of the first eight National Manufacturing Investment Zones to be developed as green field integrated industrial townships. "The National Manufacturing Zones would create 100 million jobs in one decade," he said.
A state of the art multi-modal logistic hub will be established near Panchgaon Chowk at an estimated cost of nearly Rs 2000 crores of which Government of India will contribute Rs.300 crore. This logistic hub will transform Haryana into a regional logistics centre for the entire northern region.
A Mass Rapid Transit System will be established in the Manesar-Bawal investment region at a projected cost of Rs.13580 crores. This will be developed in PPP mode. The Minister had a high level review meeting on the project implementation, land acquisition and a joint centre-state task force for monitoring the timelines of the project that has been agreed upon to ensure that the road map drawn for project implementation is followed through.
He said that the Government of India would support the establishment of a Global City spread over a large area of land which will be developed as a hi-tech city with a central business district, finance centre and an integrated exhibition-cum convention facility at Garhi-Harsaru.
The Government of India will establish a National Institute of Design at Kurukshetra for which the State Government has offered land. This Institute will be modeled on the NID, Ahmedabad and will be amongst one of the four national institute being established across the country.
The Government of India will provide Rs.135 crores for the entire project. He said that the Government will support an International Horticulture Hub, Gannaur for which a detailed project report has been prepared. He said that a hub for perishable with cold storage and related infrastructure would be set up at Chandigarh -Mohali airport.
Mankind Pharma set to tap core drugs market
New Delhi: Mankind Pharma is set for a major turnaround over the next two to three years. The Rs 2,000-crore company, best known for its consumer brands like Prega News, Manforce, Unwanted-72 and Kaloree-1, is now eyeing the market for diabetes and cardiovascular drugs to record growth in both turnover and profit.
Mankind Pharma, India’s seventh-largest drug maker, aims to rise to the second or third position over three to four years, says chief executive and Chairman R C Juneja. “We are planning to launch 15-16 products in the chronic therapy segment this financial year. Currently, our profit margins are very low compared to the industry, primarily because most of our products are in the low-margin segments, and these are priced low. Introducing drugs in the chronic segment would not only contribute to the turnover, but also boost profit,” he told Business Standard.
The acute segment includes diseases that usually last for a short duration and require therapies like anti-infectives, pain-killers or analgesics. The chronic segment includes diseases that are recurring in nature and include lifestyle diseases. It includes therapies anti-diabetics, cardiovascular, cancer etc.
The company is targeting a growth of 28-30 per cent this financial year, which would raise its turnover to about Rs 2,500 crore, Juneja said. Driven by robust growth in the consumer brand segment, the company’s pharmaceutical business has been growing about 18 per cent annually, compared with the industry average of 13-14 per cent. However, the company’s net profit margins, growing at 12-13 per cent, are slightly below the industry average of about 20 per cent. The chronic segment foray would help boost this, Juneja adds.
Ashish Mehra, managing director, Strategic Decisions Group, says Mankind’s entry into chronic therapy is essential for it to expand beyond small town to big cities. “It started with acute therapy in rural areas, and then moved to towns. Now, when it wishes to enter big cities, there are big players dominating the market. These companies are already strong in the acute segment. So, to compete with these, Mankind needs to tap the chronic segment,” he said.
A source close to the company said Mankind also planned to divest stake in its personal care business, which primarily comprises products like ‘Adiction’ deodorant and ‘Don’t Worry’ sanitary napkins. The move would help the company concentrate on the pharmaceuticals and the over-the-counter (OTC) businesses, he said.
Juneja, however, said this was a “tentative plan”. “We have decided to watch for a year and then take a final call,” he added. For now, the company is not adding any product to the segment.
Analysts say the personal care business could be a roadblock to the company’s ambitious plans and this could be a reason why it is considering selling the business.
Sanjiv D Kaul, Managing Director, ChrysCapital, which holds 11 per cent stake in the company, agrees. “After pharmaceuticals and OTC, personal care was an obvious move. This was also complemented by the company’s huge sales network. However, it does not want to be diverted from its aim of becoming a leading pharmaceutical company. So, at some point it may divest the personal care business,” he says.
Currently, Mankind has a sales force of about 7,000, and the company is steadily increasing this number. “We would hire about 700 people by March,” says Juneja. “We would record growth only by introducing new products and strengthening sales and marketing,” he adds.
Juneja started his career in 1975 as a medical representative with Lupin. In 1984, he, along with two of his brothers, decided to start a formulation business called Bestochem. In 1995, Juneja and his brother, Rajeev, set up Mankind Pharma. Rajeev Juneja now looks after the company’s marketing division.
“I started the company with merely Rs 5,00,000 and no loan,” says Juneja. His son, Arjun Juneja, has now joined the company’s operations team.
Unlike its counterparts, Mankind started by focusing on rural areas, tier-II and tier-III cities. “They understood the DNA of the Indian pharmaceutical market very well. That is why their business model is very unique. At a time when no pharmaceutical company saw value at the bottom of the pyramid, Mankind started from the outskirts, and gradually moved to the centre. They created the market there and later, others joined the bandwagon,” says Kaul.
However, some feel the transition to selling products in the chronic segment in big cities may not be easy, and the company may have to put in place a stronger and more effective strategy. “So far, Mankind has opted for a price-penetration strategy. They launched most of their products with very low prices compared to others, acquiring a significant market share. But gradually, they increased prices. However, this strategy may not work for essential products in the chronic segment,” said a sector analyst. He added the company would have to develop innovative therapies, backed with science and quality, to capture the chronic market.
While the company has received offers from major multinational companies for its pharmaceutical business, Juneja asserts there was absolutely no reason or plan to sell, even if the valuation was huge. “I do not want to leave money for my kids. I would like to leave an asset which they can run and serve the country with,” he says.
The company has 10 manufacturing plants in the country. Recently, it built a research and development centre in Manesar.
Mankind Pharma, India’s seventh-largest drug maker, aims to rise to the second or third position over three to four years, says chief executive and Chairman R C Juneja. “We are planning to launch 15-16 products in the chronic therapy segment this financial year. Currently, our profit margins are very low compared to the industry, primarily because most of our products are in the low-margin segments, and these are priced low. Introducing drugs in the chronic segment would not only contribute to the turnover, but also boost profit,” he told Business Standard.
The acute segment includes diseases that usually last for a short duration and require therapies like anti-infectives, pain-killers or analgesics. The chronic segment includes diseases that are recurring in nature and include lifestyle diseases. It includes therapies anti-diabetics, cardiovascular, cancer etc.
The company is targeting a growth of 28-30 per cent this financial year, which would raise its turnover to about Rs 2,500 crore, Juneja said. Driven by robust growth in the consumer brand segment, the company’s pharmaceutical business has been growing about 18 per cent annually, compared with the industry average of 13-14 per cent. However, the company’s net profit margins, growing at 12-13 per cent, are slightly below the industry average of about 20 per cent. The chronic segment foray would help boost this, Juneja adds.
Ashish Mehra, managing director, Strategic Decisions Group, says Mankind’s entry into chronic therapy is essential for it to expand beyond small town to big cities. “It started with acute therapy in rural areas, and then moved to towns. Now, when it wishes to enter big cities, there are big players dominating the market. These companies are already strong in the acute segment. So, to compete with these, Mankind needs to tap the chronic segment,” he said.
A source close to the company said Mankind also planned to divest stake in its personal care business, which primarily comprises products like ‘Adiction’ deodorant and ‘Don’t Worry’ sanitary napkins. The move would help the company concentrate on the pharmaceuticals and the over-the-counter (OTC) businesses, he said.
Juneja, however, said this was a “tentative plan”. “We have decided to watch for a year and then take a final call,” he added. For now, the company is not adding any product to the segment.
Analysts say the personal care business could be a roadblock to the company’s ambitious plans and this could be a reason why it is considering selling the business.
Sanjiv D Kaul, Managing Director, ChrysCapital, which holds 11 per cent stake in the company, agrees. “After pharmaceuticals and OTC, personal care was an obvious move. This was also complemented by the company’s huge sales network. However, it does not want to be diverted from its aim of becoming a leading pharmaceutical company. So, at some point it may divest the personal care business,” he says.
Currently, Mankind has a sales force of about 7,000, and the company is steadily increasing this number. “We would hire about 700 people by March,” says Juneja. “We would record growth only by introducing new products and strengthening sales and marketing,” he adds.
Juneja started his career in 1975 as a medical representative with Lupin. In 1984, he, along with two of his brothers, decided to start a formulation business called Bestochem. In 1995, Juneja and his brother, Rajeev, set up Mankind Pharma. Rajeev Juneja now looks after the company’s marketing division.
“I started the company with merely Rs 5,00,000 and no loan,” says Juneja. His son, Arjun Juneja, has now joined the company’s operations team.
Unlike its counterparts, Mankind started by focusing on rural areas, tier-II and tier-III cities. “They understood the DNA of the Indian pharmaceutical market very well. That is why their business model is very unique. At a time when no pharmaceutical company saw value at the bottom of the pyramid, Mankind started from the outskirts, and gradually moved to the centre. They created the market there and later, others joined the bandwagon,” says Kaul.
However, some feel the transition to selling products in the chronic segment in big cities may not be easy, and the company may have to put in place a stronger and more effective strategy. “So far, Mankind has opted for a price-penetration strategy. They launched most of their products with very low prices compared to others, acquiring a significant market share. But gradually, they increased prices. However, this strategy may not work for essential products in the chronic segment,” said a sector analyst. He added the company would have to develop innovative therapies, backed with science and quality, to capture the chronic market.
While the company has received offers from major multinational companies for its pharmaceutical business, Juneja asserts there was absolutely no reason or plan to sell, even if the valuation was huge. “I do not want to leave money for my kids. I would like to leave an asset which they can run and serve the country with,” he says.
The company has 10 manufacturing plants in the country. Recently, it built a research and development centre in Manesar.
Saint-Gobain plans solar energy solutions
Chennai: Saint-Gobain India is looking at supplying solar systems here, backed by the group’s solar energy equipment production facilities in Europe.
A division of the company, Saint-Gobain Solar Solutions, will offer and set up rooftop solar photovoltaic systems of a wide range of capacities, according to Mr S. Eisenhower, Director-Operations, Saint Gobain India.
The Indian subsidiary of the multinational Saint-Gobain will import the solar modules from group company Avancis Solar in Torgau, Germany. The facility makes thin film photovoltaic modules.
In recent years, the factory’s capacity has increased from about 30 MW to over 200 MW and is growing, he said.
The factory is being expanded to produce about 300 MW of solar modules annually.
Mr Eisenhower was speaking to Business Line on the sidelines of a seminar on renewable energy on Tuesday.
A company official said the solar division is in talks with integrators – people assembling solar energy rooftop equipment – to offer the Avancis range of modules. The company hopes to build a network of integrators who will use the modules, besides acting as a distribution chain. Saint-Gobain sees particular potential in the hospitality and healthcare segment, where there is keen interest for solar photovoltaic and solar powered-steam generation applications.
The policy environment for distributed energy generation capacity is slowly falling in place, with support for solar power generation as a part of renewable energy options. Also, grid power shortage in many States is driving residential and industrial consumers to set up backup power.
The company is also a major supplier of components the for solar power generation capacities being set up under the Jawaharlal Nehru National Urban Renewal Mission.
It manufactures curved mirrors for solar concentrators and flat mirrors used in solar thermal applications. It has supplied mirrors to power over 150 MW of such applications under the scheme, the official said.
A division of the company, Saint-Gobain Solar Solutions, will offer and set up rooftop solar photovoltaic systems of a wide range of capacities, according to Mr S. Eisenhower, Director-Operations, Saint Gobain India.
The Indian subsidiary of the multinational Saint-Gobain will import the solar modules from group company Avancis Solar in Torgau, Germany. The facility makes thin film photovoltaic modules.
In recent years, the factory’s capacity has increased from about 30 MW to over 200 MW and is growing, he said.
The factory is being expanded to produce about 300 MW of solar modules annually.
Mr Eisenhower was speaking to Business Line on the sidelines of a seminar on renewable energy on Tuesday.
A company official said the solar division is in talks with integrators – people assembling solar energy rooftop equipment – to offer the Avancis range of modules. The company hopes to build a network of integrators who will use the modules, besides acting as a distribution chain. Saint-Gobain sees particular potential in the hospitality and healthcare segment, where there is keen interest for solar photovoltaic and solar powered-steam generation applications.
The policy environment for distributed energy generation capacity is slowly falling in place, with support for solar power generation as a part of renewable energy options. Also, grid power shortage in many States is driving residential and industrial consumers to set up backup power.
The company is also a major supplier of components the for solar power generation capacities being set up under the Jawaharlal Nehru National Urban Renewal Mission.
It manufactures curved mirrors for solar concentrators and flat mirrors used in solar thermal applications. It has supplied mirrors to power over 150 MW of such applications under the scheme, the official said.
Madhucon arm commissions second unit in Nellore
Hyderabad: Simhapuri Energy, a subsidiary of Madhucon Projects Ltd, has commenced commercial operations of the second unit of 150 MW in Nellore district of Andhra Pradesh. With this, the first phase of 300 MW has gone on stream.
The diversified Hyderabad-based infrastructure holding company, Madhucon is implementing 1,920-MW thermal power plant with a total outlay of Rs 11,270 crore. The company expects to complete phase II of 300 MW by November-December.
Seventy per cent of the capacity will be supplied to Power Trading Corporation under tolling agreement and the balance goes towards merchant power. Once both the phases are implemented, they are expected to contribute about Rs 600 crore to the company’s revenue.
The company has long-term imported coal supply pact for the plant located close to the Krishnapatnam port.
Madhucon's subsidiary PT Madhucon Sriwijaya Power in Indonesia has signed a power purchase agreement with PT PLN (Persero) for supply of power for 25 years from its proposed 300 MW mine mouth coal plant to be set up in south Sumatra. The company hopes to tie up funds for the Rs 2,100 crore Indonesia project by the year end.
COAL mines
The company’s coal subsidiary PT Madhucon Indonesia has rights for three coal mines. One of the mines located at Diwas in South Sumatra has commenced commercial production with an output of 25,000 tonnes a month.
The diversified Hyderabad-based infrastructure holding company, Madhucon is implementing 1,920-MW thermal power plant with a total outlay of Rs 11,270 crore. The company expects to complete phase II of 300 MW by November-December.
Seventy per cent of the capacity will be supplied to Power Trading Corporation under tolling agreement and the balance goes towards merchant power. Once both the phases are implemented, they are expected to contribute about Rs 600 crore to the company’s revenue.
The company has long-term imported coal supply pact for the plant located close to the Krishnapatnam port.
Madhucon's subsidiary PT Madhucon Sriwijaya Power in Indonesia has signed a power purchase agreement with PT PLN (Persero) for supply of power for 25 years from its proposed 300 MW mine mouth coal plant to be set up in south Sumatra. The company hopes to tie up funds for the Rs 2,100 crore Indonesia project by the year end.
COAL mines
The company’s coal subsidiary PT Madhucon Indonesia has rights for three coal mines. One of the mines located at Diwas in South Sumatra has commenced commercial production with an output of 25,000 tonnes a month.
Maharashtra tops in number of foreign tourist visits
Mumbai: Maharashtra topped the list in number of foreign tourist visits, followed by Tamil Nadu and New Delhi. While Maharashtra received nearly 4.8 million tourists, Tamil Nadu welcomed 3.4 million people and New Delhi played host to 2.2 million foreigners, according to the latest report from the Union Ministry of Tourism.
The statistics released by the Ministry for 2011, says the number of Foreign Tourist Visits (FTVs) to Indian states/union territories was 19.5 million as compared to 17.9 million in 2010 and 14.4 million in 2009. This year, the number of FTVs registered a growth of 8.85 percent over 2010 as compared to a growth of 24.6 percent in 2010 over 2009. It is the third consecutive year where the number of foreign tourist visitors has increased.
"Our campaign Maharashtra Unlimited has been successful in reaching out to the globe. We lay emphasis on leisure tours, beach tours, rural tourism and heritage tourism among others. As Maharashtra is an all season-destination our next goal is to reach the topmost slot in the country in terms of domestic tourists' arrival," said Chhagan Bhujbal, Minister of Tourism.
The report said, the contribution of top 10 States was about 90.1 per cent to the total number of foreign tourists visits in the country for 2011.
The percentage shares of top 5 States were Maharashtra 24.7 per cent, Tamil Nadu 17.3 per cent, Delhi 11.1 per cent, Uttar Pradesh 9.7 per cent and Rajasthan 6.9 per cent.
The statistics released by the Ministry for 2011, says the number of Foreign Tourist Visits (FTVs) to Indian states/union territories was 19.5 million as compared to 17.9 million in 2010 and 14.4 million in 2009. This year, the number of FTVs registered a growth of 8.85 percent over 2010 as compared to a growth of 24.6 percent in 2010 over 2009. It is the third consecutive year where the number of foreign tourist visitors has increased.
"Our campaign Maharashtra Unlimited has been successful in reaching out to the globe. We lay emphasis on leisure tours, beach tours, rural tourism and heritage tourism among others. As Maharashtra is an all season-destination our next goal is to reach the topmost slot in the country in terms of domestic tourists' arrival," said Chhagan Bhujbal, Minister of Tourism.
The report said, the contribution of top 10 States was about 90.1 per cent to the total number of foreign tourists visits in the country for 2011.
The percentage shares of top 5 States were Maharashtra 24.7 per cent, Tamil Nadu 17.3 per cent, Delhi 11.1 per cent, Uttar Pradesh 9.7 per cent and Rajasthan 6.9 per cent.
Electronics manufacturing units get Rs 30k-cr worth incentives and subsidies
New Delhi: India has set aside Rs 30,000 crore worth of incentives and subsidies to encourage firms to set up electronics manufacturing units in the country. Startups interested in creation of apps for mobile phones, tablets and other electronic hardware will also benefit, as a package of Rs 10,000 crore is in the offing for them.
"About Rs 20,000 crore has already been approved. While the rest has been put forth for approval by the Cabinet for startups interested in IP creation, as an electronic development fund," J Satyanarayana, who took over this year as the new IT secretary, at department of electronics and IT told ET.
The fund will also be used for providing incentives to the tune of 20-25% as subsidy for capital expenditure incurred. Firms such as Nokia, Samsung, LG, Dell, Lenovo, who are already manufacturing in India, will also benefit from the new fund.
Government has also drafted a marketing plan to encourage 'Made in India' electronics in the global market.
"We will visit global trade fairs and exhibitions and invite component and electronic makers in Korea, Taiwan, China, Japan, Germany and US, to locate units in India," Satyanarayana added.
A delegation of Ministry officials is visiting a trade fair in Germany next month to scout for potential candidates. The Union Cabinet last month approved Rs 10,000 crore, as financial support for the development of electronic manufacturing clusters.
"About Rs 20,000 crore has already been approved. While the rest has been put forth for approval by the Cabinet for startups interested in IP creation, as an electronic development fund," J Satyanarayana, who took over this year as the new IT secretary, at department of electronics and IT told ET.
The fund will also be used for providing incentives to the tune of 20-25% as subsidy for capital expenditure incurred. Firms such as Nokia, Samsung, LG, Dell, Lenovo, who are already manufacturing in India, will also benefit from the new fund.
Government has also drafted a marketing plan to encourage 'Made in India' electronics in the global market.
"We will visit global trade fairs and exhibitions and invite component and electronic makers in Korea, Taiwan, China, Japan, Germany and US, to locate units in India," Satyanarayana added.
A delegation of Ministry officials is visiting a trade fair in Germany next month to scout for potential candidates. The Union Cabinet last month approved Rs 10,000 crore, as financial support for the development of electronic manufacturing clusters.
Tuesday, July 17, 2012
Ramky Infra to invest Rs 1,000-cr in industrial park
Hyderabad: Ramky Infrastructure Ltd is planning to replicate the Pharma City near Visakhapatnam with a multi-product industrial park near Hyderabad.
This time around, the company is handling the land acquisition directly. Earlier, the company had acquired the land allocated by Andhra Pradesh Industrial Infrastructure Corporation.
The Hyderabad-based Rs 6,000-crore diversified infrastructure and waste management solutions provider, Ramky group, plans to invest up to Rs 1,000 crore in the 2,000-acre park at Choutuppal on the busy Hyderabad-Vijayawada highway 60 km from here.
The Executive Director of Ramky Infrastructure, Mr M.Goutham Reddy, told Business Line, “The park will encourage projects from the textile, biochemical and other sectors offering them an integrated infrastructure. They would just have to come in and commence work.”
“Thus far, we have acquired over 1,000 acres and expect to complete the acquisition of the rest soon. We are looking at developing the project beginning this year end”, he said.
“We are not considering it as a Special Economic Zone. The entire land we have acquired is through direct purchase and we hope to invest about Rs 250 crore,” he explained.
The company is planning to phase out the development of the industrial park over 5-6 years, with the first phase coming up on a 2,000-acre site within 2-3 years.
IPO Move
“We are finalising the initial public offer for Ramky Enviro Engineers Ltd (REEL), a Ramky Group company engaged in management of environment offering services,” Mr Reddy said.
The company, known for NIMBY (not in my backyard) projects, is planning capital market entry to part fund its expansion and diversification plans.
“Consultants have been entrusted with the task to finalise the structure and the details to enter the market are being frozen. The market has to be conducive and must have appetite,” he said.
This time around, the company is handling the land acquisition directly. Earlier, the company had acquired the land allocated by Andhra Pradesh Industrial Infrastructure Corporation.
The Hyderabad-based Rs 6,000-crore diversified infrastructure and waste management solutions provider, Ramky group, plans to invest up to Rs 1,000 crore in the 2,000-acre park at Choutuppal on the busy Hyderabad-Vijayawada highway 60 km from here.
The Executive Director of Ramky Infrastructure, Mr M.Goutham Reddy, told Business Line, “The park will encourage projects from the textile, biochemical and other sectors offering them an integrated infrastructure. They would just have to come in and commence work.”
“Thus far, we have acquired over 1,000 acres and expect to complete the acquisition of the rest soon. We are looking at developing the project beginning this year end”, he said.
“We are not considering it as a Special Economic Zone. The entire land we have acquired is through direct purchase and we hope to invest about Rs 250 crore,” he explained.
The company is planning to phase out the development of the industrial park over 5-6 years, with the first phase coming up on a 2,000-acre site within 2-3 years.
IPO Move
“We are finalising the initial public offer for Ramky Enviro Engineers Ltd (REEL), a Ramky Group company engaged in management of environment offering services,” Mr Reddy said.
The company, known for NIMBY (not in my backyard) projects, is planning capital market entry to part fund its expansion and diversification plans.
“Consultants have been entrusted with the task to finalise the structure and the details to enter the market are being frozen. The market has to be conducive and must have appetite,” he said.
Gujarat Pipavav Port to invest Rs 1,097 cr on capacity expansion
Ahmedabad: Gujarat Pipavav Port Ltd (GPPL) on Monday said it plans to invest Rs 1,097 crore on expansion of Pipavav Port in Gujarat and has also concluded a capital-raising exercise of Rs 350 crore through Qualified Institutional Placement (QIP) and a preferential issue to its promoter, mainly to prepay the existing loan.
The company is proposing an expansion of the infrastructure facilities at APM Terminals at Pipavav in Gujarat to increase capacity and enhance operational efficiencies. “We propose to increase capacity for container cargo to about 1.5 million TEUs and the capacity for bulk cargo to 10 million tonnes,” said Mr Prakash Tulsiani, Managing Director.
The proposed expansion plans for container cargo include a new container berth of 348 meters to provide a contiguous berth of 735 meters to enable the port to simultaneously handle two post-Panamax vessels, dredging in berth pockets, three new post-Panamax cranes, increasing the yard capacity to 1.5 million TEUs and 10 new Rubber Tyred Gantry Cranes, besides internal roads.
For bulk cargo the plans include construction of a new container berth to enable the port to dedicate the existing multi-purpose berth exclusively for bulk cargo services, additional berth extension by 110 meters to provide a contiguous berth of 800 meters, dredging, new Gottwald crane, and a dedicated conveyor system for coal.
These proposed expansion activities for bulk cargo services will be undertaken based on customer requirements by entering into commercial arrangements with the customers.
The QIP was of 3.41 crore shares at a price of Rs 58.45 per share aggregating Rs 199.48 crore to institutional investors. The preferential issue was of 2.58 crore shares to the company’s promoter, APM Terminals Mauritius Ltd, at a price of Rs 58.45 per share, aggregating to Rs 150.52 crore. The promoter’s shareholding in the company has been maintained at 43.01 per cent post the QIP and the preferential issuance.
Kotak Mahindra Capital Company Ltd and IDFC Capital Ltd acted as the book-running lead managers for the company’s first QIP, said Mr Hariharan Iyer, CFO, GPPL/APM Terminals Pipavav.
Those allotted shares included institutions such as Bajaj Life Insurance, SBI Life Insurance, Franklin Templeton, Kotak Mahindra, Vanguard International Explorer Fund, Schroder Asia Pacific Fund PLC and Jardine Fleming.
The funds raised will be largely used to prepay the existing loan in order to strengthen the company’s balance sheet and to facilitate funding options for its expansion plans.
Gujarat Pipavav Port Ltd is the developer and operator of APM Terminals Pipavav located in Gujarat. The promoters, APM Terminals, bought a majority stake in the company in 2005, and the port began marketing its services to clients based in North-West India. In 2010, the company launched its IPO and improved cargo volumes, the number of clients, road and rail connectivity and storage facilities. The port is part of an international network of ports and terminals belonging to APM Terminals, which is part of the AP Moller-Maersk group.
The company is proposing an expansion of the infrastructure facilities at APM Terminals at Pipavav in Gujarat to increase capacity and enhance operational efficiencies. “We propose to increase capacity for container cargo to about 1.5 million TEUs and the capacity for bulk cargo to 10 million tonnes,” said Mr Prakash Tulsiani, Managing Director.
The proposed expansion plans for container cargo include a new container berth of 348 meters to provide a contiguous berth of 735 meters to enable the port to simultaneously handle two post-Panamax vessels, dredging in berth pockets, three new post-Panamax cranes, increasing the yard capacity to 1.5 million TEUs and 10 new Rubber Tyred Gantry Cranes, besides internal roads.
For bulk cargo the plans include construction of a new container berth to enable the port to dedicate the existing multi-purpose berth exclusively for bulk cargo services, additional berth extension by 110 meters to provide a contiguous berth of 800 meters, dredging, new Gottwald crane, and a dedicated conveyor system for coal.
These proposed expansion activities for bulk cargo services will be undertaken based on customer requirements by entering into commercial arrangements with the customers.
The QIP was of 3.41 crore shares at a price of Rs 58.45 per share aggregating Rs 199.48 crore to institutional investors. The preferential issue was of 2.58 crore shares to the company’s promoter, APM Terminals Mauritius Ltd, at a price of Rs 58.45 per share, aggregating to Rs 150.52 crore. The promoter’s shareholding in the company has been maintained at 43.01 per cent post the QIP and the preferential issuance.
Kotak Mahindra Capital Company Ltd and IDFC Capital Ltd acted as the book-running lead managers for the company’s first QIP, said Mr Hariharan Iyer, CFO, GPPL/APM Terminals Pipavav.
Those allotted shares included institutions such as Bajaj Life Insurance, SBI Life Insurance, Franklin Templeton, Kotak Mahindra, Vanguard International Explorer Fund, Schroder Asia Pacific Fund PLC and Jardine Fleming.
The funds raised will be largely used to prepay the existing loan in order to strengthen the company’s balance sheet and to facilitate funding options for its expansion plans.
Gujarat Pipavav Port Ltd is the developer and operator of APM Terminals Pipavav located in Gujarat. The promoters, APM Terminals, bought a majority stake in the company in 2005, and the port began marketing its services to clients based in North-West India. In 2010, the company launched its IPO and improved cargo volumes, the number of clients, road and rail connectivity and storage facilities. The port is part of an international network of ports and terminals belonging to APM Terminals, which is part of the AP Moller-Maersk group.
CBSE agrees to introduce financial education in school curriculum
Kolkata: The Central Board of Secondary Education or CBSE is likely to take the lead in introducing financial education in its post primary level curriculum after taking a leaf out of Reserve Bank of India's financial literacy goal.
RBI recognises that basic knowledge about monetary aspects play a key role in financial inclusion and inclusive growth. Imparting financial education among the masses at the early stage of a life cycle can make a real difference in a country where many do not get the opportunity to study beyond school level.
"This is truer in case of girl students. One must keep it in mind that for such students, this could be the last opportunity in life to get formal inputs on financial education," RBI said in a draft guidelines on financial education released on Monday..
In step with this goal, CBSE has formed a panel to facilitate this integration.
"Financial education is important life skill. Therefore, our educational system should equip students with these necessary life skills, without which, education will be incomplete," RBI said in the draft National Strategy for Financial Education.
The banking watchdog wants integration of financial education into school curriculum instead of introduction of a separate subject.
RBI recognises that basic knowledge about monetary aspects play a key role in financial inclusion and inclusive growth. Imparting financial education among the masses at the early stage of a life cycle can make a real difference in a country where many do not get the opportunity to study beyond school level.
"This is truer in case of girl students. One must keep it in mind that for such students, this could be the last opportunity in life to get formal inputs on financial education," RBI said in a draft guidelines on financial education released on Monday..
In step with this goal, CBSE has formed a panel to facilitate this integration.
"Financial education is important life skill. Therefore, our educational system should equip students with these necessary life skills, without which, education will be incomplete," RBI said in the draft National Strategy for Financial Education.
The banking watchdog wants integration of financial education into school curriculum instead of introduction of a separate subject.
India must explore investment potential in Philippines
Kolkata: Mr Amit Dasgupta, Ambassador-designate of India to the Philippines, on Monday said that India should explore investment and business opportunities in the Philippines.
Information technology, education, transportation, telecommunication and tourism could be some of the key areas for co-operation between the two countries, Mr Dasgupta said at an interactive session organised by the Confederation of Indian Industry here on Monday .
He also deliberated and interacted on business and investment opportunities in New South Wales and Australia.
“The global economy is going through a stressful and difficult period and every country is facing the stress. In such a situation, what is most required for India to tackle the economic downturn is to discover new markets and strengthen existing markets and focus on creation of wealth,” he said.
Information technology, education, transportation, telecommunication and tourism could be some of the key areas for co-operation between the two countries, Mr Dasgupta said at an interactive session organised by the Confederation of Indian Industry here on Monday .
He also deliberated and interacted on business and investment opportunities in New South Wales and Australia.
“The global economy is going through a stressful and difficult period and every country is facing the stress. In such a situation, what is most required for India to tackle the economic downturn is to discover new markets and strengthen existing markets and focus on creation of wealth,” he said.
Indian Biotech Industry's five year growth at 19%: E&Y
Hyderabad: The biotechnology industry in India is at a critical juncture. While the industry has been growing at a CAGR of 19% rate over the last five years, it has concurrently been facing diverse challenges that have prevented the industry from transcending to the next level, says a report by the global audit and advisory firm Ernst & Young.
The industry size stood at US$4 billion for FY 2010 - 2011. The biopharmaceutical industry constitutes 60% of the biotech industry in India and grew at 21% y-o-y to reach US$2.3 billion in 2010-11, which is approximately 15% of the Indian pharmaceutical industry in value terms. Vaccines, insulin, erythropoietin and monoclonal antibodies have been the mainstay of the biopharma segment.
The E&Y report, while noting the significant growth of the industry, highlights the reasons that are hindering further growth of the industry in India. According to it, within the domestic market, companies have not been able to launch new products at a pace that they would have liked.
Dealing with multiple regulatory bodies typically results in serious delays. Parallely, companies focused on innovation have not been able to make a sizeable impact on the industry. Many of them are facing funding constraints as the investor community has shied away from investing in early stage ventures, said the report.
Ajit Mahadevan, Partner, Ernst & Young said, "India is already facing stiff competition from China, Korea, Singapore, and more recently Malaysia, in terms of attracting investments from MNCs. This has been enabled due to better technological and scientific competence, better infrastructure, tax and duty exemptions, and easier regulatory procedures as compared to India. Thus, there is strong call for action for the government to act swiftly to carry out regulatory reforms, develop infrastructure and provide more incentives to the biotech industry to remain competitive and spur growth in the industry."
The report also calls for more action on part of the industry to come up with a concerted action plan to utilize the available infrastructure and resources more efficiently and focus on innovation to take the biotech industry to new heights.
The government, on its part, has introduced several schemes to fund biotech start-ups. As an incentive for in house R&D, the government also provides 200% weighted tax deduction, which has been extended till 2017 in this year's budget. In terms of infrastructure, several biotech parks have been set up in India in the last five years with public private partnerships.
The industry, however, believes that most of biotech parks are more congenial to biotech services and diagnostics firms rather than pure-play biotech manufacturing companies. To support bio-manufacturing activities, they want the government to evaluate the feasibility of making available land at subsidized rates, uninterrupted power at competitive prices, good quality water supply and effluent treatment facilities to improve the efficiency and productivity of pharmaceutical companies.
Globally, the biotech industry achieved revenues of US$83.4 billion in 2011, a 10% increase from 2010 on a normalized basis.
The industry size stood at US$4 billion for FY 2010 - 2011. The biopharmaceutical industry constitutes 60% of the biotech industry in India and grew at 21% y-o-y to reach US$2.3 billion in 2010-11, which is approximately 15% of the Indian pharmaceutical industry in value terms. Vaccines, insulin, erythropoietin and monoclonal antibodies have been the mainstay of the biopharma segment.
The E&Y report, while noting the significant growth of the industry, highlights the reasons that are hindering further growth of the industry in India. According to it, within the domestic market, companies have not been able to launch new products at a pace that they would have liked.
Dealing with multiple regulatory bodies typically results in serious delays. Parallely, companies focused on innovation have not been able to make a sizeable impact on the industry. Many of them are facing funding constraints as the investor community has shied away from investing in early stage ventures, said the report.
Ajit Mahadevan, Partner, Ernst & Young said, "India is already facing stiff competition from China, Korea, Singapore, and more recently Malaysia, in terms of attracting investments from MNCs. This has been enabled due to better technological and scientific competence, better infrastructure, tax and duty exemptions, and easier regulatory procedures as compared to India. Thus, there is strong call for action for the government to act swiftly to carry out regulatory reforms, develop infrastructure and provide more incentives to the biotech industry to remain competitive and spur growth in the industry."
The report also calls for more action on part of the industry to come up with a concerted action plan to utilize the available infrastructure and resources more efficiently and focus on innovation to take the biotech industry to new heights.
The government, on its part, has introduced several schemes to fund biotech start-ups. As an incentive for in house R&D, the government also provides 200% weighted tax deduction, which has been extended till 2017 in this year's budget. In terms of infrastructure, several biotech parks have been set up in India in the last five years with public private partnerships.
The industry, however, believes that most of biotech parks are more congenial to biotech services and diagnostics firms rather than pure-play biotech manufacturing companies. To support bio-manufacturing activities, they want the government to evaluate the feasibility of making available land at subsidized rates, uninterrupted power at competitive prices, good quality water supply and effluent treatment facilities to improve the efficiency and productivity of pharmaceutical companies.
Globally, the biotech industry achieved revenues of US$83.4 billion in 2011, a 10% increase from 2010 on a normalized basis.
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