Ahmedabad: Goa based diversified Dempo group controlled Dempo Shipbuilding & Engineering announced to have acquired majority stake of 74% in Modest Infrastructure Ltd, a shipbuilding and ship repairs space in Bhavnagar, Gujarat. The group did not reveal the value of the deal.
Modest Infrastructure is the flagship company of Modest Group promoted by Bhavnagar based first generation entrepreneurs. A recent entrant in the private shipyard space, Modern Infrastructure has expertise to build sophisticated vessels such as product tankers, cement carriers, offshore supply and survey vessels of size up to 6000 dwt.
Apart from the existing Shipyard at Ramsar in Bhavnagar, Modern Infrastructure is in the process of developing a new shipyard at Ratanparwith capability of building and repairing ships up to 50000 dwt.
Dempo Shipbuilding has been engaged in shipbuilding and ship repairs for over four decades. It builds and repairs inland and seagoing vessels of size up to 3500 dwt.
"The acquisition of Modern Infrastructure is in line with the strategic vision of Dempo Group to expand this niche business of the group beyond the shores of Goa. With this acquisition, Dempo Shipbuilding will be able to cater to both international and domestic markets with bigger and technologically advanced vessels to become one of the most prominent shipbuilding organizations in India," read the statement by Dempo Group.
Commenting on the closure of the deal, group chairman Shrinivas Dempo said, "Considering future growth potential of shipbuilding and ship repairs in India, this is a positive development for Indian shipbuilding industry in general and for Dempo Group's shipbuilding business vertical in particular.
Dempo Group is aiming to achieve top line of about Rs 1500 crores in next 5 to 7 years." KPMG Corporate Finance acted as exclusive financial advisor to the Dempo Group whereas J. Sagar & Associates and Fortitude Law Associates were the legal advisors for the transaction.
Success in my Habit
Thursday, August 30, 2012
Rural spending outpaces urban consumption
Mumbai: Rural spending outpaced urban consumption in the two years up to 2011-12, the first time in nearly 25 years, according to a study by Crisil Research. This, according to Crisil, was fuelled by a strong increase in incomes, led by rising non-farm employment opportunities and the government’s focus on rural employment generation schemes.
For India, a young population, rising income and low penetration of many consumer durables means that rural consumption has the potential to remain an important source of demand. To sustain this phenomenon, it is critical to substitute short-term income boosters such as government-sponsored employment guarantee schemes with durable job opportunities in rural areas, said the study.
Crisil said given the size of India’s rural population, the value of goods and services consumed has always been greater in rural India, but urban India had narrowed the differential during most of the last decade by growing at a faster pace. Between 2009-10 and 2011-12, additional spending by rural India was Rs 3,75,000 crore, significantly higher than Rs 2,99,400 crore by urbanites.
Between 2009-10 and 2011-12, rural consumption per person grew annually at 19 per cent — two percentage points higher than its urban counterpart, according to preliminary data released for 2011-12 by the National Sample Survey Organisation.
With rising purchasing power and disposable income, the study said that notable phenomenon that is increasingly discernible in rural consumption is a shift from necessities to discretionary goods. “About one in every two rural households now has a mobile phone. Even in India’s poorest states such as Bihar and Orissa, one in three rural households has a mobile phone,” said the study. Nearly 42 per cent of rural households owned a television in 2009-10, up from 26 per cent five years earlier.
There are also interesting state-wise differences in the ownership of durables in rural India, depending on the differences in purchasing power and cultural preferences. While in rural Bihar, only 6 per cent own a two-four-wheeler, one in two households in rural Punjab has a two-/four-wheeler — a ratio even higher than that in urban Maharashtra and Karnataka.
The boost to rural consumption in recent years was underpinned by an across-the-board rise in household incomes due to increase in non-farm job opportunities and government initiated employment generation schemes. NSSO data shows that during 2004-05 to 2009-10 rural construction jobs rose by 88 per cent and the number of people employed in agriculture fell from 249 million to 229 million.
The study further said the untapped rural potential remains huge. “Over 60 per cent of India’s population in 2026 will continue to reside in rural areas. A large portion of this population will have opportunities to move up the consumption ladder as rural areas of relatively poor states such as Bihar and Uttar Pradesh catch up with today’s income and consumption pattern in relatively affluent states. The pace and depth of rural renaissance, however, will depend on policy initiatives to overcome the challenges faced by rural India,” the study said.
For India, a young population, rising income and low penetration of many consumer durables means that rural consumption has the potential to remain an important source of demand. To sustain this phenomenon, it is critical to substitute short-term income boosters such as government-sponsored employment guarantee schemes with durable job opportunities in rural areas, said the study.
Crisil said given the size of India’s rural population, the value of goods and services consumed has always been greater in rural India, but urban India had narrowed the differential during most of the last decade by growing at a faster pace. Between 2009-10 and 2011-12, additional spending by rural India was Rs 3,75,000 crore, significantly higher than Rs 2,99,400 crore by urbanites.
Between 2009-10 and 2011-12, rural consumption per person grew annually at 19 per cent — two percentage points higher than its urban counterpart, according to preliminary data released for 2011-12 by the National Sample Survey Organisation.
With rising purchasing power and disposable income, the study said that notable phenomenon that is increasingly discernible in rural consumption is a shift from necessities to discretionary goods. “About one in every two rural households now has a mobile phone. Even in India’s poorest states such as Bihar and Orissa, one in three rural households has a mobile phone,” said the study. Nearly 42 per cent of rural households owned a television in 2009-10, up from 26 per cent five years earlier.
There are also interesting state-wise differences in the ownership of durables in rural India, depending on the differences in purchasing power and cultural preferences. While in rural Bihar, only 6 per cent own a two-four-wheeler, one in two households in rural Punjab has a two-/four-wheeler — a ratio even higher than that in urban Maharashtra and Karnataka.
The boost to rural consumption in recent years was underpinned by an across-the-board rise in household incomes due to increase in non-farm job opportunities and government initiated employment generation schemes. NSSO data shows that during 2004-05 to 2009-10 rural construction jobs rose by 88 per cent and the number of people employed in agriculture fell from 249 million to 229 million.
The study further said the untapped rural potential remains huge. “Over 60 per cent of India’s population in 2026 will continue to reside in rural areas. A large portion of this population will have opportunities to move up the consumption ladder as rural areas of relatively poor states such as Bihar and Uttar Pradesh catch up with today’s income and consumption pattern in relatively affluent states. The pace and depth of rural renaissance, however, will depend on policy initiatives to overcome the challenges faced by rural India,” the study said.
Japanese auto parts maker sets up unit at Sri City SEZ
Hyderabad: Automotive components maker Piolax India, a subsidiary of Piolax of Japan, inaugurated its first Indian facility at the Sri City multi-product special economic zone in Andhra Pradesh.
The plant is slated to commence commercial production shortly. Piolax is a global manufacturer of auto parts such as industrial fasteners, coil springs, flat springs and compact units. It has facilities in the US, the UK, China and Thailand.
Sri City, located some 55 km from Chennai, already has about 80 units from 23 countries. Built on the work-live-learn-play concept and designed by Jurong Consultants of Singapore, it has well demarcated industrial zones, including automotive, engineering, logistics & warehousing, aerospace, electronics, biotech/pharma, IT and renewable energy.
“We are happy that out of the 12 Japanese firms setting up units at Sri City, Piolax will be the third to commence production, with the remaining in various stages of construction,” said Ravindra Sannareddy, Managing Director of Sri City.
The unit is expected to hire 200 people.
Sri City is also setting up country-specific enclaves to offer specific and exclusive facilities to companies from these countries, a company statement said.
The plant is slated to commence commercial production shortly. Piolax is a global manufacturer of auto parts such as industrial fasteners, coil springs, flat springs and compact units. It has facilities in the US, the UK, China and Thailand.
Sri City, located some 55 km from Chennai, already has about 80 units from 23 countries. Built on the work-live-learn-play concept and designed by Jurong Consultants of Singapore, it has well demarcated industrial zones, including automotive, engineering, logistics & warehousing, aerospace, electronics, biotech/pharma, IT and renewable energy.
“We are happy that out of the 12 Japanese firms setting up units at Sri City, Piolax will be the third to commence production, with the remaining in various stages of construction,” said Ravindra Sannareddy, Managing Director of Sri City.
The unit is expected to hire 200 people.
Sri City is also setting up country-specific enclaves to offer specific and exclusive facilities to companies from these countries, a company statement said.
India, Australia join hands to develop iron-rich bananas
Hyderabad: Eating bananas could well be the next best thing in the fight against anaemia soon. Indian and Australian researchers have joined hands to develop iron-rich bananas that could help women with iron deficiency.
Bananas contain vitamin B6, fibre and potassium. Globally more than 100 billion bananas are consumed annually, making it the largest agricultural product after wheat, rice and corn.
The joint effort will see the development of new strains of iron-rich bananas. It will offer an affordable option to tackle iron-deficiency anaemia, a major cause of maternal deaths during childbirth, especially in India and other developing countries.
The Biotechnology Industry Research Assistance Council (Birac) under the Department of Biotechnology and the Queensland University of Technology have signed an agreement for the purpose. The project will see an investment of A$2.6 million or about Rs 14.8 crore.
Birac is providing A$1.2 million (Rs 6.8 crore ) to the University and another A$1.4 million (Rs 8 crore) towards the cost of the Indian component of the programme, which will address a nutrition deficiency in Indian population, said Managing Director Renu Swarup.
The project will be led by the University’s Centre for Tropical Crops and Biocommodities Director James Dale and India’s National Agri-Food Biotechnology Institute’s Rakesh Tuli. Other partners include Bhabha Atomic Research Centre, National Research Centre for Bananas, Tamil Nadu Agricultural University and Indian Institute of Horticulture Research.
In a press release, Australian High Commissioner to India Peter Varghese said on Wednesday that it is an important project that would help prevent avoidable maternal mortality in India.
Dales said the project would build upon ongoing research the University was undertaking to increase the nutritional content of bananas in Uganda under the auspices of the Gates Foundation. The Indian banana project would involve an initial four-year development phase. It would then take another four to five years to prepare the bananas for release to Indian farmers.
Bananas contain vitamin B6, fibre and potassium. Globally more than 100 billion bananas are consumed annually, making it the largest agricultural product after wheat, rice and corn.
The joint effort will see the development of new strains of iron-rich bananas. It will offer an affordable option to tackle iron-deficiency anaemia, a major cause of maternal deaths during childbirth, especially in India and other developing countries.
The Biotechnology Industry Research Assistance Council (Birac) under the Department of Biotechnology and the Queensland University of Technology have signed an agreement for the purpose. The project will see an investment of A$2.6 million or about Rs 14.8 crore.
Birac is providing A$1.2 million (Rs 6.8 crore ) to the University and another A$1.4 million (Rs 8 crore) towards the cost of the Indian component of the programme, which will address a nutrition deficiency in Indian population, said Managing Director Renu Swarup.
The project will be led by the University’s Centre for Tropical Crops and Biocommodities Director James Dale and India’s National Agri-Food Biotechnology Institute’s Rakesh Tuli. Other partners include Bhabha Atomic Research Centre, National Research Centre for Bananas, Tamil Nadu Agricultural University and Indian Institute of Horticulture Research.
In a press release, Australian High Commissioner to India Peter Varghese said on Wednesday that it is an important project that would help prevent avoidable maternal mortality in India.
Dales said the project would build upon ongoing research the University was undertaking to increase the nutritional content of bananas in Uganda under the auspices of the Gates Foundation. The Indian banana project would involve an initial four-year development phase. It would then take another four to five years to prepare the bananas for release to Indian farmers.
Indian drug companies break into world's fastest growing list
Mumbai: In yet another instance of India Inc occupying a larger seat in the global league tables, three out of the top 10 fastest-growing generic companies globally are now from India. Besides being an indication of the acceptance of domestic pharmaceutical companies and their growing clout, this is also a stamp of their command on manufacturing processes, innovation and marketing muscle at a global scale.
On the list is Glenmark Pharmaceuticals which, with a growth of 37%, is the fifth fastest-growing generic company globally, followed by Dr Reddy's which grew 34% in FY 2011-12, according to global pharmaceutical research firm, EvaluatePharma. The third domestic company on the list, Sun Pharma witnessed a growth of 29%, occupying the eighth rank, right below its subsidiary Taro which had a 33% growth (Taro reports its own numbers since it's listed in the US, while the domestic company has started combining the Israel-based company's financials since September 2010).
The club of the fastest growing generic companies in the world is dominated by US companies, led by US-based Sagent Pharma, which witnessed a huge growth of 106% during the period, according to the research firm's latest analysis.
Perrigo, another US company, is the world's second fastest-growing company with an 80% growth. Nichi-Iko Pharmaceutical of Japan is on the third slot, posting a growth of 79%, while Watson Pharma of US grew 46% during the period.
Pharma companies have taken advantage of the blockbuster drugs which are losing patent protection, and have already raked in millions of dollars by introducing their copy-cat versions. For instance, Dr Reddy's launched generic versions of blockbuster drugs Zyprexa and Plavix, while Ranbaxy mopped up huge revenues from sales of generic Lipitor.
Significant product launches, market exclusivity of drugs going off-patent, and growth in regulated markets have contributed to the development, industry experts say.
According to Sujay Shetty, India leader for pharma and life sciences at PwC India, "This shows the growing significance of domestic companies in terms of quality, portfolio strategy and certain significant first-to-file (FTF) products. Strong revenues from regulated markets are another factor which contributed to the huge growth. Most of the companies have sales of around 50% coming from US, which is the largest market for generics globally. Domestic companies like Dr Reddy's capitalized on key FTF opportunities, while others including Sun Pharma posted gains on account of US sales."
The growth in domestic companies has also been driven by their robust home businesses. The Indian pharma market is clocking a growth of around 15-20% year-on-year.
Commenting on Glenmark's strategy, CMD Glenn Saldanha says, "The high growth is due to our focus in building a strong emerging markets business in addition to having a significant presence in India and US. The growth from markets, particularly Russia, Brazil and the US, has been exceptional. We have invested in these markets for the last six-seven years and we are just beginning to make huge inroads in these markets. Glenmark will continue to build its presence in markets like Russia, Brazil and Mexico where it has invested for the last five years and these markets will drive strong growth."
On the list is Glenmark Pharmaceuticals which, with a growth of 37%, is the fifth fastest-growing generic company globally, followed by Dr Reddy's which grew 34% in FY 2011-12, according to global pharmaceutical research firm, EvaluatePharma. The third domestic company on the list, Sun Pharma witnessed a growth of 29%, occupying the eighth rank, right below its subsidiary Taro which had a 33% growth (Taro reports its own numbers since it's listed in the US, while the domestic company has started combining the Israel-based company's financials since September 2010).
The club of the fastest growing generic companies in the world is dominated by US companies, led by US-based Sagent Pharma, which witnessed a huge growth of 106% during the period, according to the research firm's latest analysis.
Perrigo, another US company, is the world's second fastest-growing company with an 80% growth. Nichi-Iko Pharmaceutical of Japan is on the third slot, posting a growth of 79%, while Watson Pharma of US grew 46% during the period.
Pharma companies have taken advantage of the blockbuster drugs which are losing patent protection, and have already raked in millions of dollars by introducing their copy-cat versions. For instance, Dr Reddy's launched generic versions of blockbuster drugs Zyprexa and Plavix, while Ranbaxy mopped up huge revenues from sales of generic Lipitor.
Significant product launches, market exclusivity of drugs going off-patent, and growth in regulated markets have contributed to the development, industry experts say.
According to Sujay Shetty, India leader for pharma and life sciences at PwC India, "This shows the growing significance of domestic companies in terms of quality, portfolio strategy and certain significant first-to-file (FTF) products. Strong revenues from regulated markets are another factor which contributed to the huge growth. Most of the companies have sales of around 50% coming from US, which is the largest market for generics globally. Domestic companies like Dr Reddy's capitalized on key FTF opportunities, while others including Sun Pharma posted gains on account of US sales."
The growth in domestic companies has also been driven by their robust home businesses. The Indian pharma market is clocking a growth of around 15-20% year-on-year.
Commenting on Glenmark's strategy, CMD Glenn Saldanha says, "The high growth is due to our focus in building a strong emerging markets business in addition to having a significant presence in India and US. The growth from markets, particularly Russia, Brazil and the US, has been exceptional. We have invested in these markets for the last six-seven years and we are just beginning to make huge inroads in these markets. Glenmark will continue to build its presence in markets like Russia, Brazil and Mexico where it has invested for the last five years and these markets will drive strong growth."
Wednesday, August 29, 2012
Flytxt clinches twin deals in Africa
Thiruvananthapuram: Flytxt, a provider of real-time closed-loop mobile marketing solutions, has won twin deals with African telecom companies Warid Uganda and Warid Congo B.
Based out of Technopark here, Flytxt will provide its campaign management solution to these telcos.
Goes Live
The company’s platform went live on both the operator networks soon after the closure of the deal, a company spokesman said here.
Its technology brings out subscriber insights based on service consumption patterns and helps cellular service providers to highly customise service offerings. The integrated reward-churn-intent-and-offer management functionality of the Flytxt marketing suite helps build an efficient closed-loop marketing process.
Shailendra Naidu, Chief Commercial Officer at Warid Uganda said pre-paid markets were changing and required not just real-time insights about mobile subscribers but also the ability to communicate with them in an interactive and personalised fashion.
Loyal Partnership
Innovations such as these help mobile operators to forge a strong bond with their subscribers and develop a loyal, long-term relationship with them. “We are delighted to bring technology purpose-built by Flytxt for telcos,” Naidu said.
Imossio Begoume, Chief Marketing Officer at Warid Congo B said he wanted to create newer and richer experiences for the people of Congo.
Warid had partnered with Flytxt with a view to benefiting from its innovative approach to mobile marketing technology and services space.
Vinod Vasudevan, Group Chief Executive Officer, Flytxt said his company was extremely happy about partnering with Warid Uganda and Warid Congo B.
“We look forward to working with them to enable personalised communications and improved experience for their mobile subscriber base.
Based out of Technopark here, Flytxt will provide its campaign management solution to these telcos.
Goes Live
The company’s platform went live on both the operator networks soon after the closure of the deal, a company spokesman said here.
Its technology brings out subscriber insights based on service consumption patterns and helps cellular service providers to highly customise service offerings. The integrated reward-churn-intent-and-offer management functionality of the Flytxt marketing suite helps build an efficient closed-loop marketing process.
Shailendra Naidu, Chief Commercial Officer at Warid Uganda said pre-paid markets were changing and required not just real-time insights about mobile subscribers but also the ability to communicate with them in an interactive and personalised fashion.
Loyal Partnership
Innovations such as these help mobile operators to forge a strong bond with their subscribers and develop a loyal, long-term relationship with them. “We are delighted to bring technology purpose-built by Flytxt for telcos,” Naidu said.
Imossio Begoume, Chief Marketing Officer at Warid Congo B said he wanted to create newer and richer experiences for the people of Congo.
Warid had partnered with Flytxt with a view to benefiting from its innovative approach to mobile marketing technology and services space.
Vinod Vasudevan, Group Chief Executive Officer, Flytxt said his company was extremely happy about partnering with Warid Uganda and Warid Congo B.
“We look forward to working with them to enable personalised communications and improved experience for their mobile subscriber base.
WBSEDCL mandates IL&FS Engineering Services to build 3 power projects in West Bengal
Kolkata: State-run power utility West Bengal State Electricity Distribution Company Ltd has mandated IL&FS Engineering & Construction Company or IL&FS Engineering Services to build three rural power projects worth Rs 331 crore in the state.
The projects involve supply and delivery of equipment and build the infrastructure for rural electrification. The projects will be carried out in South 24-Paraganas, which is one of most backward districts in the state. IL&FS Engineering said on Tuesday.
The projects is slated to be completed simultaneously in 24 months. The debt-laden state plans to use the centre's Backward Region Grant Fund to meet the cost of the projects.
IL&FS Engineering Services is one of the leading multinational infrastructure development, construction and project management companies.
Villages in Thakurpukur, Maheshola, Budge Budge, Kultali, Basanti, Sonarpur, Bhangar, Canning, Canning, Baruipur, Joynagar, Mathurapur will be covered under this plan.
The projects involve supply and delivery of equipment and build the infrastructure for rural electrification. The projects will be carried out in South 24-Paraganas, which is one of most backward districts in the state. IL&FS Engineering said on Tuesday.
The projects is slated to be completed simultaneously in 24 months. The debt-laden state plans to use the centre's Backward Region Grant Fund to meet the cost of the projects.
IL&FS Engineering Services is one of the leading multinational infrastructure development, construction and project management companies.
Villages in Thakurpukur, Maheshola, Budge Budge, Kultali, Basanti, Sonarpur, Bhangar, Canning, Canning, Baruipur, Joynagar, Mathurapur will be covered under this plan.
Govt maps road for electric vehicles
New Delhi: In a move to reduce dependence on fossil fuels for vehicles, government plans to push the supply of vehicles powered by electricity over the next eight years. A report prepared by the Centre projects that there would be demand of 5-7 million electricity-operated vehicles, and over 50% of them would be battery electric vehicle (BEV).
The report, which will be discussed at a meeting on National Electric Mobility 2020 on Wednesday, pegs investment of Rs 20,000-23,000 crore for the initiative. Funds will be needed for initiatives including additional power generation and attendant infrastructure to charge batteries.
The meeting, involving key Central ministers headed by heavy industries minister Praful Patel, on Wednesday will firm up the plan to make the transformation of public and private vehicles. Government estimates suggest that the transport sector in India accounts for about one-third of total crude oil consumption, with road transport guzzling more than 80%.
The Centre is looking at electric-operated vehicles in a bid to decrease the over dependence on scarce fossil fuel. The report claims that sale of 6-7 million units of electric vehicles, including two-wheelers, will help save 2.2-2.25 million tonne fossil fuel consumption by 2020. Sources said that the National Electric Mobility Plan has components like cash subsidy and financing facilities for the end consumers, creating a network for charging of the vehicles, research and development as well as (R&D) incentives for the companies.
Many countries such as Japan, France and the US have set targets to bring electric vehicles on their roads. France aims to get two million BEVs and plug-in hybrid electric vehicle (PHEVs) with an investment of $380-$400 million. Japan is looking at two million electric vehicles by 2025, and has earmarked $250 million for the venture.
In India, vehicle manufacturers such as Mahindra & Mahindra, Maruti and Tata have announced to launch cars on electric mode soon.
Electric vehicles for mobility have gained importance in light of growing pollution across the globe. International Energy Agency (IEA) in its 2009 report had mentioned that fossil fuel based transportation is the second largest source of carbon dioxide emission.
The report, which will be discussed at a meeting on National Electric Mobility 2020 on Wednesday, pegs investment of Rs 20,000-23,000 crore for the initiative. Funds will be needed for initiatives including additional power generation and attendant infrastructure to charge batteries.
The meeting, involving key Central ministers headed by heavy industries minister Praful Patel, on Wednesday will firm up the plan to make the transformation of public and private vehicles. Government estimates suggest that the transport sector in India accounts for about one-third of total crude oil consumption, with road transport guzzling more than 80%.
The Centre is looking at electric-operated vehicles in a bid to decrease the over dependence on scarce fossil fuel. The report claims that sale of 6-7 million units of electric vehicles, including two-wheelers, will help save 2.2-2.25 million tonne fossil fuel consumption by 2020. Sources said that the National Electric Mobility Plan has components like cash subsidy and financing facilities for the end consumers, creating a network for charging of the vehicles, research and development as well as (R&D) incentives for the companies.
Many countries such as Japan, France and the US have set targets to bring electric vehicles on their roads. France aims to get two million BEVs and plug-in hybrid electric vehicle (PHEVs) with an investment of $380-$400 million. Japan is looking at two million electric vehicles by 2025, and has earmarked $250 million for the venture.
In India, vehicle manufacturers such as Mahindra & Mahindra, Maruti and Tata have announced to launch cars on electric mode soon.
Electric vehicles for mobility have gained importance in light of growing pollution across the globe. International Energy Agency (IEA) in its 2009 report had mentioned that fossil fuel based transportation is the second largest source of carbon dioxide emission.
India PC market grows 17% in Q2
Mumbai: The combined desk-based and mobile personal computer market in India grew to about 2.9 million units in the second quarter of 2012, a 17 per cent rise over the same period a year ago.
Mobile personal computers, which grew 54 per cent, helped in driving the overall market growth, according to a study by global research and advisory firm Gartner.
White boxes (including parallel import), which accounted for 45 per cent of the overall desktop market, declined 18 per cent during the reporting period, it said.
“Consumer buying accounted for 50 per cent of total PC sales in the second quarter of 2012. Consumer PC sales grew 24 per cent sequentially, which emphasises the fact that media tablets are not yet cannibalising the PC market in India like in the West,” Vishal Tripathi, principal research analyst at Gartner, said.
Consumer segment
Consumer growth is primarily being driven by entry level products. Vendors such as HP, Lenovo, Asus and Samsung registered more than 50 per cent growth in the consumer segment.
“Ultrabooks are still finding it difficult to penetrate the market. However, with the availability of the new Intel processor and declining price points, we expect adoption to increase in the coming quarters,” Tripathi added. Gartner expects PC shipment growth to continue in the third quarter of 2012 due to the festive season and education buying, the report said.
Mobile personal computers, which grew 54 per cent, helped in driving the overall market growth, according to a study by global research and advisory firm Gartner.
White boxes (including parallel import), which accounted for 45 per cent of the overall desktop market, declined 18 per cent during the reporting period, it said.
“Consumer buying accounted for 50 per cent of total PC sales in the second quarter of 2012. Consumer PC sales grew 24 per cent sequentially, which emphasises the fact that media tablets are not yet cannibalising the PC market in India like in the West,” Vishal Tripathi, principal research analyst at Gartner, said.
Consumer segment
Consumer growth is primarily being driven by entry level products. Vendors such as HP, Lenovo, Asus and Samsung registered more than 50 per cent growth in the consumer segment.
“Ultrabooks are still finding it difficult to penetrate the market. However, with the availability of the new Intel processor and declining price points, we expect adoption to increase in the coming quarters,” Tripathi added. Gartner expects PC shipment growth to continue in the third quarter of 2012 due to the festive season and education buying, the report said.
We can double exports by 2015, says Commerce Secretary
New Delhi: The Government’s target of doubling exports to $500 billion by 2015 is achievable, said S.R. Rao, Commerce Secretary.
Speaking on the sidelines of a Confederation of Indian Industry Export summit here, he said, “The country can expect some policy announcements in the next 3-4 weeks which would encourage the industry and exporters.”
When asked whether India will be able to achieve the $360-billion export target for this fiscal, he said, “it is difficult.”
Underlining the significance of emerging economies in global trade flows, he said their share in global trade flows had risen to 42 per cent with South-South trade accounting for a large portion.
“South-South trade has multiplied more than 10 times in the last two decades as compared to global trade which grew four-fold in this period,” said Rao.
Adi Godrej, President, CII, and Chairman, Godrej Group, said if supply chains currently based in China are relocated, India needs to take advantage of that by finding ways to integrate itself more effectively in the new value chain.
T.C.A. Ranganathan, CMD of Exim Bank of India, said that while the Government and industry have an equally important role to play in formulating an effective strategy, it is the strategy of individual corporations that will play a bigger role in achieving the export target.
Last year India’s external merchandise trade was close to $780 billion contributing close to 47 per cent of the national GDP.
“Our exports have breached the $300-billion mark though our imports remain a hefty $470 billion generating a large trade deficit, which is a matter of concern,” the Commerce Secretary said.
Speaking on the sidelines of a Confederation of Indian Industry Export summit here, he said, “The country can expect some policy announcements in the next 3-4 weeks which would encourage the industry and exporters.”
When asked whether India will be able to achieve the $360-billion export target for this fiscal, he said, “it is difficult.”
Underlining the significance of emerging economies in global trade flows, he said their share in global trade flows had risen to 42 per cent with South-South trade accounting for a large portion.
“South-South trade has multiplied more than 10 times in the last two decades as compared to global trade which grew four-fold in this period,” said Rao.
Adi Godrej, President, CII, and Chairman, Godrej Group, said if supply chains currently based in China are relocated, India needs to take advantage of that by finding ways to integrate itself more effectively in the new value chain.
T.C.A. Ranganathan, CMD of Exim Bank of India, said that while the Government and industry have an equally important role to play in formulating an effective strategy, it is the strategy of individual corporations that will play a bigger role in achieving the export target.
Last year India’s external merchandise trade was close to $780 billion contributing close to 47 per cent of the national GDP.
“Our exports have breached the $300-billion mark though our imports remain a hefty $470 billion generating a large trade deficit, which is a matter of concern,” the Commerce Secretary said.
Tuesday, August 28, 2012
L&T secures Rs 1302 crore order from Petroleum Development Oman
The order was won against stiff competition from nine international EPC bidders.
Petroleum Development Oman (PDO) is the leading exploration and production company in the Sultanate.
It accounts for more than 70% of the country's crude-oil production and nearly all of its natural-gas supply. Production from the Saih Rawl (SR) Gas Fields commenced ln 1999. However due to declining reservoir pressure in Saih Rawl Main (SRM) Field, the Saih Rawl Main wells Flowing Tubing Pressure will continuously decline until it reaches 35 bars in first quarter 2015.
In order to continue to produce on-spec gas through the CPP in first quarter 2015, second stage depletion compressors (SRDC2) are required to be installed upstream of the SRDC1. L & T has been chosen to execute this part of the project.
The SRDC2 involves installation of 76 MW of gas compression capacity with 4 trains, and modification of the condensate handling system at CPR. This will enable the Saih Rawl Main field to produce Maximum Annual Daily Load (MADL) of 30 MMSCMD gas.
LEET's EPC expertise in this refdion has been earlier roped in for executing around 150 MUSD, Lekhwair Gas Field Development Project for PDO.
Indian cloud market to grow 70pc in 2012, over 2011
New Delhi: After being on the fringes for quite some time, cloud computing is set for a major leap. In these tough times, companies have been proactively looking at various 'disruptive technologies' that will ensure that technology is elastic enough to meet the business growth needs. Cloud models and the flexibility they bring are featuring high here.
International Data Corporation (IDC) estimates the Indian Cloud market to be in the region of $535m in 2011, with a growth of more than 70 per cent expected for 2012 and almost 50 per cent growth forecasted for the next three years. It is a market that is fast maturing and seeing many new entrants with a broad range of investments/solutions taking key roles in the cloud ecosystem. Public cloud still lags way behind the private cloud adoption for a number of factors.
IDC has just released a cloud research report, titled 'India Cloud Market Overview-2011-16'. The research provides insights on how the cloud market landscape is evolving and how companies are taking advantage of the new mode of IT usage.
"We have definitely seen cloud cross the inflexion point in end 2011; use cases especially in IasS & SaaS areas provide testimony to that. With proper messaging from key vendors and due diligence of opportunities which exist in the cloud delivery models, the market will grow much faster in the coming years"" says Nirupam Chaudhuri, Research manager - Software & IT Services, IDC India, in a release.
"Alliance with key channels and enablement will further intensify the growth for major cloud providers and gradually we will see even core applications moving to cloud much faster. Users need to feel much more comfortable with fewer inhibitions like security and ownership concerns" added Nirupam.
Cloud providers also need to strengthen their capabilities to understand the business requirements of the organizations and come up with apt value propositions. "Organizations are more likely to work with firms that understand their business processes better and industry dynamics, and hence are better suited to overseeing the transition of the organization to a cloud environment without disruption of the business processes," says Sandeep Kumar Sharma, senior market analyst - IT services, IDC India.
It is also imperative for the cloud providers to act as partners for the organizations in assessing their cloud readiness, and accordingly recommending a cloud adoption roadmap. This is absolutely essential for a seamless integration of the IT infrastructure into the cloud environment. "Organizations, even the larger ones, are on an increasing level feeling the pinching need to assess their cloud readiness and maturity levels. This would provide a boost to cloud consulting services in the coming 12-24 months. A direct corollary is that vendors need to have robust cloud consulting capabilities in place for making a foray into this space," Sandeep added.
International Data Corporation (IDC) estimates the Indian Cloud market to be in the region of $535m in 2011, with a growth of more than 70 per cent expected for 2012 and almost 50 per cent growth forecasted for the next three years. It is a market that is fast maturing and seeing many new entrants with a broad range of investments/solutions taking key roles in the cloud ecosystem. Public cloud still lags way behind the private cloud adoption for a number of factors.
IDC has just released a cloud research report, titled 'India Cloud Market Overview-2011-16'. The research provides insights on how the cloud market landscape is evolving and how companies are taking advantage of the new mode of IT usage.
"We have definitely seen cloud cross the inflexion point in end 2011; use cases especially in IasS & SaaS areas provide testimony to that. With proper messaging from key vendors and due diligence of opportunities which exist in the cloud delivery models, the market will grow much faster in the coming years"" says Nirupam Chaudhuri, Research manager - Software & IT Services, IDC India, in a release.
"Alliance with key channels and enablement will further intensify the growth for major cloud providers and gradually we will see even core applications moving to cloud much faster. Users need to feel much more comfortable with fewer inhibitions like security and ownership concerns" added Nirupam.
Cloud providers also need to strengthen their capabilities to understand the business requirements of the organizations and come up with apt value propositions. "Organizations are more likely to work with firms that understand their business processes better and industry dynamics, and hence are better suited to overseeing the transition of the organization to a cloud environment without disruption of the business processes," says Sandeep Kumar Sharma, senior market analyst - IT services, IDC India.
It is also imperative for the cloud providers to act as partners for the organizations in assessing their cloud readiness, and accordingly recommending a cloud adoption roadmap. This is absolutely essential for a seamless integration of the IT infrastructure into the cloud environment. "Organizations, even the larger ones, are on an increasing level feeling the pinching need to assess their cloud readiness and maturity levels. This would provide a boost to cloud consulting services in the coming 12-24 months. A direct corollary is that vendors need to have robust cloud consulting capabilities in place for making a foray into this space," Sandeep added.
SEBI moots zero fee demat account for small investors
Mumbai: To reduce cost of maintaining securities in demat accounts for retail investors, SEBI has decided to introduce a “Basic Services Demat Account” (BSDA).
All depository participants have to make available a BSDA with limited services, said SEBI.
Individuals opting for BSDA are eligible for one demat account across all depositories where they are the sole or the first holder.
The maximum value of securities in a BSDA should not exceed Rs 2 lakh and at any point of time. Annual maintenance charges would not be levied for value of securities held in a BSDA up to Rs 50,000. Anything above Rs 50,000 and up to Rs 2 lakh would attract annual maintenance charges of Rs 100.
All beneficial owners for BSDA, have to register their mobile number for availing themselves the SMS alert facility for debit transactions. They will be issued at least two delivery instruction slips (DIS) at the time of account opening.
The BSDA value would be determined everyday according to the daily closing price of securities or daily closing NAV.
If the value of the holding in the BSDA exceeds the prescribed criteria as on a particular date, charges applicable to a normal DP account would apply from that date.
Quarterly transaction statement would be sent to the beneficial owner only if the demat account holder has transacted. Similarly holding statements would be sent once in a year to beneficial owners according to their option — in physical or electronic format. While electronic statements would be free of charge, additional physical statements would cost investors Rs 25 each.
Accounts with zero balance and credit balance with nil transactions shall receive only one physical holding statement.
Transaction statements shall not be provided for accounts that becomes zero balance or remains zero balance during the year.
The circular comes into effect from October 1.
All depository participants have to make available a BSDA with limited services, said SEBI.
Individuals opting for BSDA are eligible for one demat account across all depositories where they are the sole or the first holder.
The maximum value of securities in a BSDA should not exceed Rs 2 lakh and at any point of time. Annual maintenance charges would not be levied for value of securities held in a BSDA up to Rs 50,000. Anything above Rs 50,000 and up to Rs 2 lakh would attract annual maintenance charges of Rs 100.
All beneficial owners for BSDA, have to register their mobile number for availing themselves the SMS alert facility for debit transactions. They will be issued at least two delivery instruction slips (DIS) at the time of account opening.
The BSDA value would be determined everyday according to the daily closing price of securities or daily closing NAV.
If the value of the holding in the BSDA exceeds the prescribed criteria as on a particular date, charges applicable to a normal DP account would apply from that date.
Quarterly transaction statement would be sent to the beneficial owner only if the demat account holder has transacted. Similarly holding statements would be sent once in a year to beneficial owners according to their option — in physical or electronic format. While electronic statements would be free of charge, additional physical statements would cost investors Rs 25 each.
Accounts with zero balance and credit balance with nil transactions shall receive only one physical holding statement.
Transaction statements shall not be provided for accounts that becomes zero balance or remains zero balance during the year.
The circular comes into effect from October 1.
India set to become second largest steel producer
New Delhi: India is poised to become the world's second largest steel producer. However, this is subject to companies finding the right technology to produce special categories of steel. Currently, with 74 million tonnes annual production in 2011, India is the fourth largest producer. Per capita steel consumption went up to 59 kg in 2011-12, from 34 kg in 2004-05. With the modernisation programmes of various public and private companies, the country will soon rise to second place, Prime Minister Manmohan Singh said in his address to the steel industry, after giving away trophies for the best integrated steel plant here on Monday. However, he noted that despite impressive data, per capita steel production was much lower than the global average of 215 kg. Also, the country was one of the importers of special category of steel. The Prime Minister’s trophy was awarded to SAIL's Bhilai Steel Plant for 2009-10. Tata Steel got the trophy for 2008-09.
India, China plan to set up joint working group to boost trade
New Delhi: India and China are working to set up a joint working group aimed at giving a fillip to bilateral investment and also to address trade related matters.
The two countries also evinced interest in fostering favourable investment climate including greater market access and speedy visa facilitation.
Commerce and Industry Ministry Anand Sharma and his Chinese counterpart Chen Deming led their business teams at the ninth session of the India-China Joint Group on Economic Relations, Trade, Science and Technology.
Sharma, while briefing reporters, said, “The joint working group will be established soon and it will give its recommendations and assessments in 90 days...We have also agreed to work on a five-year plan on economic cooperation. These have been proposed by China and we have welcomed and endorsed it”.
While Sharma raised concerns over widening trade deficit in favour of China and restricted market access in areas such as IT, pharmaceutical and agricultural products, Chen raised issues pertaining to visas and the recent import duty hike on power equipment by India.
Sharma said, those projects which already have got approval for the 12{+t}{+h} Plan period will be continue to enjoy the exemption.
Sharma said the two sides had touched upon issues that were hampering trade and investments. India had asked leading Chinese companies to set up manufacturing bases in India.
“We have invited China to participate and support in the establishment of one or more of the National Investment and Manufacturing Zones,” the Minister said.
The Chinese Trade Minister said both India and China could help in a global economic recovery and it is important to strengthen ties between the two nations. He also expressed hope of achieving $100-billion trade target by 2013.
The total bilateral trade between India and China for 2011-12, stood at $75,457.42 million as compared with $59,000.36 million in 2010-11.
During 2011-12, the exports were $17,902.98 million while the imports stood at $57,554.44 million. The provisional trade deficit for 2011-12 was $39,651.46 million.
The two countries also evinced interest in fostering favourable investment climate including greater market access and speedy visa facilitation.
Commerce and Industry Ministry Anand Sharma and his Chinese counterpart Chen Deming led their business teams at the ninth session of the India-China Joint Group on Economic Relations, Trade, Science and Technology.
Sharma, while briefing reporters, said, “The joint working group will be established soon and it will give its recommendations and assessments in 90 days...We have also agreed to work on a five-year plan on economic cooperation. These have been proposed by China and we have welcomed and endorsed it”.
While Sharma raised concerns over widening trade deficit in favour of China and restricted market access in areas such as IT, pharmaceutical and agricultural products, Chen raised issues pertaining to visas and the recent import duty hike on power equipment by India.
Sharma said, those projects which already have got approval for the 12{+t}{+h} Plan period will be continue to enjoy the exemption.
Sharma said the two sides had touched upon issues that were hampering trade and investments. India had asked leading Chinese companies to set up manufacturing bases in India.
“We have invited China to participate and support in the establishment of one or more of the National Investment and Manufacturing Zones,” the Minister said.
The Chinese Trade Minister said both India and China could help in a global economic recovery and it is important to strengthen ties between the two nations. He also expressed hope of achieving $100-billion trade target by 2013.
The total bilateral trade between India and China for 2011-12, stood at $75,457.42 million as compared with $59,000.36 million in 2010-11.
During 2011-12, the exports were $17,902.98 million while the imports stood at $57,554.44 million. The provisional trade deficit for 2011-12 was $39,651.46 million.
Monday, August 27, 2012
Smaller cities favoured for upcoming logistic hubs
An acre of land in Oragadam, near Chennai, today costs Rs 2.50 crore, while it used to be around Rs 80 lakh three years ago. With the auto sector turning Oragadam into its hub, not only has the price of land gone up in and around the area, but it has also opened enormous business opportunities for logistics and warehousing operations.
Once the Goods and Service Tax (GST) is implemented there will be a great demand for logistic and warehouse operations, said V.N. Sridharan, Chief Executive Officer, Shri Kailash Logistics, which has a large logistics park in Oragadam. He said goods worth Rs 5,000 crore are manufactured in the zone every month.
The latest findings of C.B. Richard Ellis (CBRE), an international real estate consulting firm, validates Sridharan’s views on the demand for logistics space not only in Oragadam but across the country.
Tier-II catches up
The report India Logistics Market View says that India witnessed increased market activity in the first half of 2012.
Demand for logistic and warehousing spaces was not only limited to leading cities, such as Delhi-NCR, Mumbai and Bangalore, but was spread across tier II cities.
E-tailers are investing heavily in strategically-located assets and are taking up quality warehousing space.
However, availability of large land parcels at low cost, connectivity to multiple markets across states and industrial clusters, has led to the emergence of some tier II and III cities as favoured destinations for the development of logistics parks and warehouses.
Anshuman Magazine, Chairman and Managing Director of CBRE South Asia Pvt Ltd, said, “The rising level of activity in logistics and warehousing space across metros as well as tier II cities is testimony to the growing confidence of domestic and international retailers in India. Factors such as enhanced connectivity, various reforms and completion of major infrastructure projects are expected to further augment the logistics sector.”
Expansion spree
FMCG majors, white goods and consumer electronics firms are on an expansion spree and are increasing their footprint in India. Built-to-suit options have been the preferred mode of expansion for most occupiers, with large transactions of warehousing space of 10,000 –15,000 sq ft being reported in the first half of 2012, he said.
Tax reforms, such as the GST, will replace a host of indirect taxes, Central Excise, Service Tax, and various State-level duties with a single levy. This is expected to bring significant reorganisation into the warehousing industry and network planning by organisations, says the report.
Over the last few months, growth in domestic consumption, coupled with better efficiency in containerised transportation, has led to an increase in demand for high-quality warehouses. A popular trend across key micro markets has been consolidation of multiple facilities in the same region into a single warehouse. Rental values are expected to remain stable in the next two quarters across most micro-markets in the region, says the report.
Once the Goods and Service Tax (GST) is implemented there will be a great demand for logistic and warehouse operations, said V.N. Sridharan, Chief Executive Officer, Shri Kailash Logistics, which has a large logistics park in Oragadam. He said goods worth Rs 5,000 crore are manufactured in the zone every month.
The latest findings of C.B. Richard Ellis (CBRE), an international real estate consulting firm, validates Sridharan’s views on the demand for logistics space not only in Oragadam but across the country.
Tier-II catches up
The report India Logistics Market View says that India witnessed increased market activity in the first half of 2012.
Demand for logistic and warehousing spaces was not only limited to leading cities, such as Delhi-NCR, Mumbai and Bangalore, but was spread across tier II cities.
E-tailers are investing heavily in strategically-located assets and are taking up quality warehousing space.
However, availability of large land parcels at low cost, connectivity to multiple markets across states and industrial clusters, has led to the emergence of some tier II and III cities as favoured destinations for the development of logistics parks and warehouses.
Anshuman Magazine, Chairman and Managing Director of CBRE South Asia Pvt Ltd, said, “The rising level of activity in logistics and warehousing space across metros as well as tier II cities is testimony to the growing confidence of domestic and international retailers in India. Factors such as enhanced connectivity, various reforms and completion of major infrastructure projects are expected to further augment the logistics sector.”
Expansion spree
FMCG majors, white goods and consumer electronics firms are on an expansion spree and are increasing their footprint in India. Built-to-suit options have been the preferred mode of expansion for most occupiers, with large transactions of warehousing space of 10,000 –15,000 sq ft being reported in the first half of 2012, he said.
Tax reforms, such as the GST, will replace a host of indirect taxes, Central Excise, Service Tax, and various State-level duties with a single levy. This is expected to bring significant reorganisation into the warehousing industry and network planning by organisations, says the report.
Over the last few months, growth in domestic consumption, coupled with better efficiency in containerised transportation, has led to an increase in demand for high-quality warehouses. A popular trend across key micro markets has been consolidation of multiple facilities in the same region into a single warehouse. Rental values are expected to remain stable in the next two quarters across most micro-markets in the region, says the report.
FIPB gives nod to eight pharma FDI proposals
New Delhi: India's foreign investment approval authority has cleared eight pending proposals of foreign drug companies to buy stakes in local companies which have been pending for several months due to lack of clarity on the new FDI norms for pharmaceuticals sector.
The eight proposals that the Foreign Investment Promotion Board (FIPB) cleared at its meeting on Friday include those of Pfizer Limited, B Braun, Sutures India and Ordain Health Care Global, two government officials who attended the meeting told ET.
Sutures India's plans to raise Rs 199 crore by selling 40% stake to Mauritius-based Ambrose Pvt Ltd and Spain's Chemo Group's proposal to buy a 100% stake in Ordain Healthcare Global for Rs 58 crore have been stuck since March.
Organisation of Pharmaceutical Producers of India (OPPI), the lobby body of foreign pharma companies in India, has welcomed the move.
"This is a one small step for encouraging FDI in India," said OPPI president Ranjit Shahani, adding that similar delays should not be repeated for future investments. The FIPB, however, deferred two fresh proposals of Advanced Enzyme Technologies and UK-based Dashtag. But this was because the health ministry did not get their applications and were not related to the new guidelines, one of the officials said.
Foreign investment in pharmaceuticals came to a standstill last year delaying expansion plans of foreign drug makers after the government decided to impose conditions holding up Rs 3,000-crore worth of FDI proposals.
The restrictions were raised after health ministry, some parliamentarians, NGOs and section of the industry expressed fears that the spate of buyouts by multinationals in recent years would threaten availability of low-cost medicines for Indians and increase dependence on costly imported drugs. Only few FDI proposals in the sector, mainly financial investments have been approved since then.
In last four years, MNCs have bought out several Indian firms which include Daiichi Sankyo's purchase of Ranbaxy and Abbott's buyout of domestic formulation business of Piramal Healthcare.
An inter-ministerial panel had finalised the new FDI guidelines for the pharmaceuticals industry in July paving the way for clearing the backlog. The panel suggested conditions such as commitment by the buyer to manufacture and make available essential drugs post acquisition for five years and also to increase R&D expenditure by 5% for diseases prevalent in India to allow foreign firms buy Indian companies. It left it to DIPP to decide if the riders be imposed only for acquisition of more than 49% or management control. The new guidelines are awaiting approval of PMO. But FIPB meeting that was held three days later decided to put off FDI proposals in pharma sector.
The eight proposals that the Foreign Investment Promotion Board (FIPB) cleared at its meeting on Friday include those of Pfizer Limited, B Braun, Sutures India and Ordain Health Care Global, two government officials who attended the meeting told ET.
Sutures India's plans to raise Rs 199 crore by selling 40% stake to Mauritius-based Ambrose Pvt Ltd and Spain's Chemo Group's proposal to buy a 100% stake in Ordain Healthcare Global for Rs 58 crore have been stuck since March.
Organisation of Pharmaceutical Producers of India (OPPI), the lobby body of foreign pharma companies in India, has welcomed the move.
"This is a one small step for encouraging FDI in India," said OPPI president Ranjit Shahani, adding that similar delays should not be repeated for future investments. The FIPB, however, deferred two fresh proposals of Advanced Enzyme Technologies and UK-based Dashtag. But this was because the health ministry did not get their applications and were not related to the new guidelines, one of the officials said.
Foreign investment in pharmaceuticals came to a standstill last year delaying expansion plans of foreign drug makers after the government decided to impose conditions holding up Rs 3,000-crore worth of FDI proposals.
The restrictions were raised after health ministry, some parliamentarians, NGOs and section of the industry expressed fears that the spate of buyouts by multinationals in recent years would threaten availability of low-cost medicines for Indians and increase dependence on costly imported drugs. Only few FDI proposals in the sector, mainly financial investments have been approved since then.
In last four years, MNCs have bought out several Indian firms which include Daiichi Sankyo's purchase of Ranbaxy and Abbott's buyout of domestic formulation business of Piramal Healthcare.
An inter-ministerial panel had finalised the new FDI guidelines for the pharmaceuticals industry in July paving the way for clearing the backlog. The panel suggested conditions such as commitment by the buyer to manufacture and make available essential drugs post acquisition for five years and also to increase R&D expenditure by 5% for diseases prevalent in India to allow foreign firms buy Indian companies. It left it to DIPP to decide if the riders be imposed only for acquisition of more than 49% or management control. The new guidelines are awaiting approval of PMO. But FIPB meeting that was held three days later decided to put off FDI proposals in pharma sector.
Indian app software market will cross $227 m this year: Gartner
Mumbai: The Indian application development software market is expected to cross $227 million in 2012, a 22.6 per cent rise over 2011.
Growth will be driven by evolving software delivery models, new development methodologies, emerging mobile application development and open source software, according to a study by research and analyst firm Gartner.
Emerging trends
“Application modernisation and increasing agility will continue to be a solid driver for app development spending, apart from other emerging dynamics of cloud, mobility and social computing,” said Asheesh Raina, principal research analyst at Gartner.
“These emerging trends are directing app demand towards newer architectures, programming languages, business model and user skills,” he added.
According to Gartner, cloud is changing the way applications are designed, tested and deployed, resulting in a significant shift in app priorities. About 90 per cent of large, mainstream enterprises and government agencies will use some aspect of cloud computing by 2015. Gartner predicts that mobile AD projects targeting smart phones and tablets will outnumber native personal computer projects by a ratio of 4:1 by 2015. Emerging mobile applications, systems and devices are transforming the app development space rapidly, and are one of the top three CIO priorities at the enterprise level.
The research also found that CIOs expect more than 20 per cent of their employees to use tablets instead of laptops by 2013, hastening the process of change as app tools and applications evolve to address the requirements of these new devices.
Open source software
Gartner expects open source software to continue to broaden its presence and create pressure on market leaders during the next 3-5 years. It predicts that at least 70 per cent of new enterprise Java applications will be deployed on an open source Java application server by 2017-end.
Growth will be driven by evolving software delivery models, new development methodologies, emerging mobile application development and open source software, according to a study by research and analyst firm Gartner.
Emerging trends
“Application modernisation and increasing agility will continue to be a solid driver for app development spending, apart from other emerging dynamics of cloud, mobility and social computing,” said Asheesh Raina, principal research analyst at Gartner.
“These emerging trends are directing app demand towards newer architectures, programming languages, business model and user skills,” he added.
According to Gartner, cloud is changing the way applications are designed, tested and deployed, resulting in a significant shift in app priorities. About 90 per cent of large, mainstream enterprises and government agencies will use some aspect of cloud computing by 2015. Gartner predicts that mobile AD projects targeting smart phones and tablets will outnumber native personal computer projects by a ratio of 4:1 by 2015. Emerging mobile applications, systems and devices are transforming the app development space rapidly, and are one of the top three CIO priorities at the enterprise level.
The research also found that CIOs expect more than 20 per cent of their employees to use tablets instead of laptops by 2013, hastening the process of change as app tools and applications evolve to address the requirements of these new devices.
Open source software
Gartner expects open source software to continue to broaden its presence and create pressure on market leaders during the next 3-5 years. It predicts that at least 70 per cent of new enterprise Java applications will be deployed on an open source Java application server by 2017-end.
Swedish Energy Agency, CII, Cleantech Scandinavia ink cooperation pact
Hyderabad: The Swedish Energy Agency, the Confederation of Indian Industry and Cleantech Scandinavia have entered into a memorandum of understanding for cooperation in the energy sector. The agreement was signed at the 11th Energy Efficiency Summit here today.
The MoU was inked by Karl Edberg, Counsellor-Environment, Climate Change and Energy, Embassy of Sweden; S. Raghupathy, Executive Director and Head of CII Sohrabji Godrej Green Business Centre; and Alexander Lindgren, Chairman of Cleantech Scandinavia.
The focus of the cooperation will be on technology exchange and facilitating the development of better energy management by engaging companies and research organisations.
Cleantech Scadinavia, the Sweden-based network for investors, Governmental organisations and professionals, contributes to business and development.
The cooperation is of significance in the backdrop of Indian industry seeking to improve energy efficiency by adopting new technologies and processes in their plants.
With the perform, achieve and trade (PAT) scheme in place adding to interest from companies, several global companies are keen to take part in the Indian power sector.
The MoU was inked by Karl Edberg, Counsellor-Environment, Climate Change and Energy, Embassy of Sweden; S. Raghupathy, Executive Director and Head of CII Sohrabji Godrej Green Business Centre; and Alexander Lindgren, Chairman of Cleantech Scandinavia.
The focus of the cooperation will be on technology exchange and facilitating the development of better energy management by engaging companies and research organisations.
Cleantech Scadinavia, the Sweden-based network for investors, Governmental organisations and professionals, contributes to business and development.
The cooperation is of significance in the backdrop of Indian industry seeking to improve energy efficiency by adopting new technologies and processes in their plants.
With the perform, achieve and trade (PAT) scheme in place adding to interest from companies, several global companies are keen to take part in the Indian power sector.
Swedish Energy Agency, CII, Cleantech Scandinavia ink cooperation pact
Hyderabad: The Swedish Energy Agency, the Confederation of Indian Industry and Cleantech Scandinavia have entered into a memorandum of understanding for cooperation in the energy sector. The agreement was signed at the 11th Energy Efficiency Summit here today.
The MoU was inked by Karl Edberg, Counsellor-Environment, Climate Change and Energy, Embassy of Sweden; S. Raghupathy, Executive Director and Head of CII Sohrabji Godrej Green Business Centre; and Alexander Lindgren, Chairman of Cleantech Scandinavia.
The focus of the cooperation will be on technology exchange and facilitating the development of better energy management by engaging companies and research organisations.
Cleantech Scadinavia, the Sweden-based network for investors, Governmental organisations and professionals, contributes to business and development.
The cooperation is of significance in the backdrop of Indian industry seeking to improve energy efficiency by adopting new technologies and processes in their plants.
With the perform, achieve and trade (PAT) scheme in place adding to interest from companies, several global companies are keen to take part in the Indian power sector.
The MoU was inked by Karl Edberg, Counsellor-Environment, Climate Change and Energy, Embassy of Sweden; S. Raghupathy, Executive Director and Head of CII Sohrabji Godrej Green Business Centre; and Alexander Lindgren, Chairman of Cleantech Scandinavia.
The focus of the cooperation will be on technology exchange and facilitating the development of better energy management by engaging companies and research organisations.
Cleantech Scadinavia, the Sweden-based network for investors, Governmental organisations and professionals, contributes to business and development.
The cooperation is of significance in the backdrop of Indian industry seeking to improve energy efficiency by adopting new technologies and processes in their plants.
With the perform, achieve and trade (PAT) scheme in place adding to interest from companies, several global companies are keen to take part in the Indian power sector.
Saturday, August 25, 2012
US cancer hospital to be set up in Hyderabad
Hyderabad: American Oncology Institute (AOI, the US) and Cyberabad Citizens Health Services, have invested Rs 220 crore ($40 million) to set up a cancer institute with 350 beds here. After two subsequent phases, it would have 1,000 beds with a total investment of Rs 1,000 crore.
“The incidence of cancer is going up in India because of industrialisation and changes in lifestyle. About 25 lakh people are afflicted with cancer and this number is underreported. Every year, about 10 lakh new cases are being reported,” said Joseph A. Nicholas, President and Chief Executive Officer of CTSE, and member on the AOI Board.
AOI is the first overseas cancer centre of the Pittsburgh (US)-based Cancer Treatment Services International (CTSI).
“We will have 350 beds in the first phase by the year end. We will develop a hub-spoke model of medical services in India. Our next centre will be in Vijayawada, in association with Nagarjuna Hospital,” R. P. Raju, Executive Vice-Chairman of the Citizens Hospital and Executive Director of CTSI (India), said.
Addressing a press conference here on Thursday, the CTSI officials said the Hyderabad campus will have multi-specialty facilities apart from cancer specialties. “We will bring in standardised protocols and advanced equipment for diagnosis and treatment from the US,” Raju said.
“The incidence of cancer is going up in India because of industrialisation and changes in lifestyle. About 25 lakh people are afflicted with cancer and this number is underreported. Every year, about 10 lakh new cases are being reported,” said Joseph A. Nicholas, President and Chief Executive Officer of CTSE, and member on the AOI Board.
AOI is the first overseas cancer centre of the Pittsburgh (US)-based Cancer Treatment Services International (CTSI).
“We will have 350 beds in the first phase by the year end. We will develop a hub-spoke model of medical services in India. Our next centre will be in Vijayawada, in association with Nagarjuna Hospital,” R. P. Raju, Executive Vice-Chairman of the Citizens Hospital and Executive Director of CTSI (India), said.
Addressing a press conference here on Thursday, the CTSI officials said the Hyderabad campus will have multi-specialty facilities apart from cancer specialties. “We will bring in standardised protocols and advanced equipment for diagnosis and treatment from the US,” Raju said.
Ramco Systems forays into Australia
Chennai: Ramco Systems has forayed into the Australian market by setting up a subsidiary to drive business. The Chennai-based enterprise software company has set up a wholly-owned subsidiary in Australia under the name Ramco Systems Australia Pty Ltd.
Currently, Ramco has 17 offices spread across India, the US, Canada, Europe, West Asia, South Africa and APAC, according to a company press release.
Virender Aggarwal, CEO, Ramco Systems, said the company has a good presence and has been looking at expanding into new markets to help the company become a global brand.
Australian companies have been early adopters of SaaS and Cloud technologies. “We believe, Ramco ERP on cloud, a comprehensive ERP offering available on cloud and accessible on iPAD, will find ready acceptance among Australian enterprises,” he said.
Ramco will be marketing its offerings through key partners which will drive business in the region to gain a strong foothold.
Currently, Ramco has 17 offices spread across India, the US, Canada, Europe, West Asia, South Africa and APAC, according to a company press release.
Virender Aggarwal, CEO, Ramco Systems, said the company has a good presence and has been looking at expanding into new markets to help the company become a global brand.
Australian companies have been early adopters of SaaS and Cloud technologies. “We believe, Ramco ERP on cloud, a comprehensive ERP offering available on cloud and accessible on iPAD, will find ready acceptance among Australian enterprises,” he said.
Ramco will be marketing its offerings through key partners which will drive business in the region to gain a strong foothold.
Dahej SEZ makes it to world's top 50 free zones
Ahmedabad: The multi-product Special Economic Zone (SEZ) at Dahej has made it to the world's top-50 'free zones'. The ranking has been granted following a survey of over 600 free zones in 120 countries by the prestigious FDI Magazine.
Gujarat's minister of state for industries Saurabh Patel has said that Dahej SEZ stood 26th among the top-50 and is the only SEZ from India to have figured in the list from 24 countries for the year 2012-13. The selection was made by the jury on various parameters. He said that Dahej SEZ has achieved this for the second consecutive year. Earlier, it had figured in FDI Magazine's top-25 free zones. The Da-hej SEZ has been jointly developed by Gujarat Industrial Develop-ment Corporation (GIDC) and Oil and Natural Gas Corporation.
It is spread over 1,732 hectares and plots have been allotted to 68 units who have invested Rs.35,000-crore. About 26,500 people have been employed at the SEZ. The commercial units have exported goods worth Rs 865 crores. Dahej SEZ Ltd (DSL) is a company registered under the Companies Act, 1956 and is promoted jointly by Gujarat Industrial Develop-ment Corporation (GIDC) and Oil & Natural Gas Corporation ltd. (ONGC) for development of Special Economic Zone (SEZ). DSL is developing a multi-product SEZ at Dahej in Vagra Taluka of Bharuch district in Gujarat, India.
Gujarat's minister of state for industries Saurabh Patel has said that Dahej SEZ stood 26th among the top-50 and is the only SEZ from India to have figured in the list from 24 countries for the year 2012-13. The selection was made by the jury on various parameters. He said that Dahej SEZ has achieved this for the second consecutive year. Earlier, it had figured in FDI Magazine's top-25 free zones. The Da-hej SEZ has been jointly developed by Gujarat Industrial Develop-ment Corporation (GIDC) and Oil and Natural Gas Corporation.
It is spread over 1,732 hectares and plots have been allotted to 68 units who have invested Rs.35,000-crore. About 26,500 people have been employed at the SEZ. The commercial units have exported goods worth Rs 865 crores. Dahej SEZ Ltd (DSL) is a company registered under the Companies Act, 1956 and is promoted jointly by Gujarat Industrial Develop-ment Corporation (GIDC) and Oil & Natural Gas Corporation ltd. (ONGC) for development of Special Economic Zone (SEZ). DSL is developing a multi-product SEZ at Dahej in Vagra Taluka of Bharuch district in Gujarat, India.
$2-b fund proposed for electronics development
Bangalore: The Government has proposed to create an electronics development fund of $2 billion to promote innovation, intellectual property, research and development (R&D), nano electronics and help commercialise made-in-India products.
Announcing the plans for this proposed fund at the Freescale Technology Forum, Ajay Kumar, Joint Secretary, Department of Electronics and Information Technology, said this fund will be made available for companies in the Electronics Systems Design and Manufacturing clusters all across India.
As a part of this, the Government is planning to participate with private players and will contribute 25-75 per cent to co-fund manufacturing initiatives.
A policy will be announced shortly, said Kumar. Walden International, a venture capital fund, is in talks with the Government to be a part of this fund, said Kumar.
Five clusters
Already, five clusters have come up or have advanced much, in Andhra Pradesh, Kerala, Haryana, Punjab and Bangalore.
In these clusters, the Government plans to set up an ecosystem that would involve skill development and the Government would give preference to products made out of these clusters, said Kumar.
Having missed the bus in manufacturing to China, the Government is increasingly looking to build the ecosystem that will help the growing domestic electronics demand in India, say industry watchers.
According to data, chip design and embedded software market in India is estimated to reach $55 billion in 2020, medical electronics equipment market is pegged at $5 billion.
Announcing the plans for this proposed fund at the Freescale Technology Forum, Ajay Kumar, Joint Secretary, Department of Electronics and Information Technology, said this fund will be made available for companies in the Electronics Systems Design and Manufacturing clusters all across India.
As a part of this, the Government is planning to participate with private players and will contribute 25-75 per cent to co-fund manufacturing initiatives.
A policy will be announced shortly, said Kumar. Walden International, a venture capital fund, is in talks with the Government to be a part of this fund, said Kumar.
Five clusters
Already, five clusters have come up or have advanced much, in Andhra Pradesh, Kerala, Haryana, Punjab and Bangalore.
In these clusters, the Government plans to set up an ecosystem that would involve skill development and the Government would give preference to products made out of these clusters, said Kumar.
Having missed the bus in manufacturing to China, the Government is increasingly looking to build the ecosystem that will help the growing domestic electronics demand in India, say industry watchers.
According to data, chip design and embedded software market in India is estimated to reach $55 billion in 2020, medical electronics equipment market is pegged at $5 billion.
Zambia keen on more investments by India
Kolkata: The Republic of Zambia plans to attract Indian investments in energy, agro processing, manufacturing, construction and tourism. Investments are also invited in developing its national parks.
Opportunities
“There are a lot of investment opportunities in agriculture, manufacturing, energy, agro processing industries and construction of bridges and roads,” Susan Sikaneta, High Commissioner of the Republic of Zambia, told reporters here on Thursday.
She was addressing an interactive session organised by city-based Indian Chamber of Commerce.
The bilateral trade between Zambia and India stood at $190 million in 2011.
“We would like to see the number go up by three times over the next few years,” Sikaneta said.
Infrastructure development
According to Sikaneta, the country has also been focusing on infrastructure development for tourism. She emphasised on developing places like South Luangwa National Park, Kafue National Park, Liuwa Plain National Park as tourist attractions.
The Zambian Government is also working on creating key policies to support infrastructure development at Kasaba Bay. The country has identified 20 investment sites in the Province, located in Northern Zambia.
“We need more and more investments in the cement industry as a lot of construction works are under way,” Sikaneta said.
FDI
Stating that the country would not restrict 100 per cent foreign direct investment, she said: “We will always encourage investors to have partnerships either with the Government or any Zambian company.”
A Zambian delegation including Sikaneta is likely to meet the West Bengal Commerce and Industries minister, Partha Chatterjee, on Friday.
Opportunities
“There are a lot of investment opportunities in agriculture, manufacturing, energy, agro processing industries and construction of bridges and roads,” Susan Sikaneta, High Commissioner of the Republic of Zambia, told reporters here on Thursday.
She was addressing an interactive session organised by city-based Indian Chamber of Commerce.
The bilateral trade between Zambia and India stood at $190 million in 2011.
“We would like to see the number go up by three times over the next few years,” Sikaneta said.
Infrastructure development
According to Sikaneta, the country has also been focusing on infrastructure development for tourism. She emphasised on developing places like South Luangwa National Park, Kafue National Park, Liuwa Plain National Park as tourist attractions.
The Zambian Government is also working on creating key policies to support infrastructure development at Kasaba Bay. The country has identified 20 investment sites in the Province, located in Northern Zambia.
“We need more and more investments in the cement industry as a lot of construction works are under way,” Sikaneta said.
FDI
Stating that the country would not restrict 100 per cent foreign direct investment, she said: “We will always encourage investors to have partnerships either with the Government or any Zambian company.”
A Zambian delegation including Sikaneta is likely to meet the West Bengal Commerce and Industries minister, Partha Chatterjee, on Friday.
Thursday, August 23, 2012
German firm launches products targeting Govt sector
Bangalore: German software major SAP has announced a slew of products for the Indian Government sector.
The company has launched its Hindi version of ERP solutions as a part of its localisation initiative. This ERP software will enable the Government to update and manage documents, help users transact various processes and generate reports to deliver better citizen services.
ERP in Hindi
Along with this solution, SAP has also launched its File Lifecycle Management solution to improve the file management processes for public sectors in English and Hindi. This solution digitises file management encompassing all stages of the conventional file management process including filing of documents, workflow management, document uploads, file movement, correspondence, administrative and access regulations, alerts and analytics. According to the company, the Lifecycle Management solution was developed by SAP Labs India.
SAP ERP in Hindi will target business areas such as taxation, accounting, employee data, provident fund, payroll, loans, claims and employee self-services.
This solution was also developed by SAP Labs India, along with government agencies, including the Centre for Development of Advanced Computing (CDAC), and language experts and covered 4.5 million coding lines, according to SAP officials. SAP is not the first to come out with a solution aimed at the Government sector. In May, EMC came out with an automated solution at the launch.
Market size
The company said the market size for workflow management solutions in the government sector is pegged at $104 million and growing at 25 per cent every year.
The company has launched its Hindi version of ERP solutions as a part of its localisation initiative. This ERP software will enable the Government to update and manage documents, help users transact various processes and generate reports to deliver better citizen services.
ERP in Hindi
Along with this solution, SAP has also launched its File Lifecycle Management solution to improve the file management processes for public sectors in English and Hindi. This solution digitises file management encompassing all stages of the conventional file management process including filing of documents, workflow management, document uploads, file movement, correspondence, administrative and access regulations, alerts and analytics. According to the company, the Lifecycle Management solution was developed by SAP Labs India.
SAP ERP in Hindi will target business areas such as taxation, accounting, employee data, provident fund, payroll, loans, claims and employee self-services.
This solution was also developed by SAP Labs India, along with government agencies, including the Centre for Development of Advanced Computing (CDAC), and language experts and covered 4.5 million coding lines, according to SAP officials. SAP is not the first to come out with a solution aimed at the Government sector. In May, EMC came out with an automated solution at the launch.
Market size
The company said the market size for workflow management solutions in the government sector is pegged at $104 million and growing at 25 per cent every year.
Mahindra launches a new Reva plant
Bangalore: Mahindra Reva Electric Vehicles, part of the $15.4 billion Mahindra Group, inaugurated a new manufacturing facility in Bommasandra on the outskirts of Bangalore on Wednesday. In May 2010, Mahindra had acquired a majority stake in Reva Electric Car Company, subsequent to which the company was renamed Mahindra Reva Electric Vehicles.
The new manufacturing facility has an installed capacity to produce 30,000 vehicles annually, and is expected to reach full production capacity over the next three years. The company said the facility, which is scheduled to begin production in September, will produce around 6,000 vehicles to begin with.
Till date the Reva brand has sold 4,500 cars. The new facility will see the production of Mahindra Reva's new two-door electric car that it had showcased in the beginning of the year at the auto expo in Delhi. The new car is yet to get a name and a price tag. The current Reva vehicles retail between Rs 4.2 lakh and Rs 5.2 lakh (on road prices Bangalore). The combined investment into the plant and the new product range is over Rs 100 crore, the company said.
"This plant was conceived even before we came on board," Anand Mahindra, CMD of Mahindra Group, said. "Mahindra has turned this plant into a reality, from our expertise of putting up plants in record time and making them cost effective. This is the greenest plant in the Mahindra group," he said. The new manufacturing facility has been awarded the platinum rating from the Indian Green Building Council, becoming the first automobile manufacturing facility in India to receive this certification.
Electric vehicles like Reva are high priced because of battery and other equipments that are imported from around the world. But Mahindra said, "Those costs are now being driven down. In the mean time we will focus on the cost per kilometre." The company says that its electric vehicle technology gives buyers a cost per kilometre of 50 paise to 60 paise, which is 10 times lower than conventional gasoline vehicles.
Mahindra said that the government must put in place a road map for electric vehicles and should emulate the policies seen in countries such as Norway. In the last quarter, 2.6% of cars sold in Norway were electric vehicles, a sector which 18 months ago had a 0.01% share of the country's automobile market. In 1999, China had 40,000 electric two wheelers; today that number has crossed 100 million.
Mahindra said he was also keen to approach enlightened state governments that have strong leaderships, who understand the perils of urbanization and the need to cope with them quickly. "We should treat them as different countries. We should approach these leaders and ask them to put in place a comprehensive policy that would ensure that a particular percentage of vehicles would use alternate fuels by a certain time."
Delhi gives a 15% subsidy for electric vehicles as well as reductions on VAT and road tax. Chhattisgarh and Gujarat have also reduced taxes on electric vehicles, while Karnataka gives a 5% reduction on VAT and has a lower road tax.
The new manufacturing facility has an installed capacity to produce 30,000 vehicles annually, and is expected to reach full production capacity over the next three years. The company said the facility, which is scheduled to begin production in September, will produce around 6,000 vehicles to begin with.
Till date the Reva brand has sold 4,500 cars. The new facility will see the production of Mahindra Reva's new two-door electric car that it had showcased in the beginning of the year at the auto expo in Delhi. The new car is yet to get a name and a price tag. The current Reva vehicles retail between Rs 4.2 lakh and Rs 5.2 lakh (on road prices Bangalore). The combined investment into the plant and the new product range is over Rs 100 crore, the company said.
"This plant was conceived even before we came on board," Anand Mahindra, CMD of Mahindra Group, said. "Mahindra has turned this plant into a reality, from our expertise of putting up plants in record time and making them cost effective. This is the greenest plant in the Mahindra group," he said. The new manufacturing facility has been awarded the platinum rating from the Indian Green Building Council, becoming the first automobile manufacturing facility in India to receive this certification.
Electric vehicles like Reva are high priced because of battery and other equipments that are imported from around the world. But Mahindra said, "Those costs are now being driven down. In the mean time we will focus on the cost per kilometre." The company says that its electric vehicle technology gives buyers a cost per kilometre of 50 paise to 60 paise, which is 10 times lower than conventional gasoline vehicles.
Mahindra said that the government must put in place a road map for electric vehicles and should emulate the policies seen in countries such as Norway. In the last quarter, 2.6% of cars sold in Norway were electric vehicles, a sector which 18 months ago had a 0.01% share of the country's automobile market. In 1999, China had 40,000 electric two wheelers; today that number has crossed 100 million.
Mahindra said he was also keen to approach enlightened state governments that have strong leaderships, who understand the perils of urbanization and the need to cope with them quickly. "We should treat them as different countries. We should approach these leaders and ask them to put in place a comprehensive policy that would ensure that a particular percentage of vehicles would use alternate fuels by a certain time."
Delhi gives a 15% subsidy for electric vehicles as well as reductions on VAT and road tax. Chhattisgarh and Gujarat have also reduced taxes on electric vehicles, while Karnataka gives a 5% reduction on VAT and has a lower road tax.
StanChart PE invests Rs 250 cr in Inox India
Mumbai: Standard Chartered Private Equity (SCPE) has invested Rs 250 crore in Inox India Ltd (INOXCVA).
INOXCVA is a global manufacturer of cryogenic (low temperature) storage and transportation equipment. The company plans to use this money to fund its organic expansion plans and potential acquisitions.
“Over the next few years, we aim to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships,” said Siddharth Jain, Sponsor, INOX India Ltd.
Standard Chartered Private Equity has investments in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation.
INOXCVA is a global manufacturer of cryogenic (low temperature) storage and transportation equipment. The company plans to use this money to fund its organic expansion plans and potential acquisitions.
“Over the next few years, we aim to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships,” said Siddharth Jain, Sponsor, INOX India Ltd.
Standard Chartered Private Equity has investments in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation.
Overseas borrowing norms eased
New Delhi: The government and RBI on Wednesday further eased overseas borrowing norms for Indian companies by allowing those in the infrastructure and manufacturing space to refinance a higher level of their rupee loans using external loans.
While the government had earlier decided to allow these companies to borrow up to 50% of the forex earnings of the last three years, the cap has now been hiked to 75%. In addition, special purpose vehicles of these companies set up over a year ago will also be eligible to tap this route to raise resources at a lower cost.
The rule relaxation is in line with the finance ministry's thrust to prop up manufacturing activity and boost infrastructure construction.
To lower the cost of funds for the small scale sector too, Sidbi has been allowed to raise ECB (external commercial borrowings) that can be then lent to the segment that accounts for a large chunk of manufacturing as well as exports.
Similarly, National Housing Bank and housing finance companies have been allowed to use the ECB route to raise funds for low-cost housing projects.
While these steps were announced after a meeting of the high-level committee on ECBs, which met here, a move has also been initiated to get foreign institutional investors (FIIs) to invest up to $5 billion in rupee bonds, which will be within the overall corporate bond limit of $45 billion.
In a statement, the finance ministry further said refinancing of buyer's credit for import of capital goods in the infrastructure sector will be placed under automatic route. In addition, the high-level committee decided to increase the maturity period of buyer's credit to maximum of five years, giving companies more time to repay.
ECBs are considered attractive as cost of raising the loan is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amounts of funds from international financial markets.
While the government had earlier decided to allow these companies to borrow up to 50% of the forex earnings of the last three years, the cap has now been hiked to 75%. In addition, special purpose vehicles of these companies set up over a year ago will also be eligible to tap this route to raise resources at a lower cost.
The rule relaxation is in line with the finance ministry's thrust to prop up manufacturing activity and boost infrastructure construction.
To lower the cost of funds for the small scale sector too, Sidbi has been allowed to raise ECB (external commercial borrowings) that can be then lent to the segment that accounts for a large chunk of manufacturing as well as exports.
Similarly, National Housing Bank and housing finance companies have been allowed to use the ECB route to raise funds for low-cost housing projects.
While these steps were announced after a meeting of the high-level committee on ECBs, which met here, a move has also been initiated to get foreign institutional investors (FIIs) to invest up to $5 billion in rupee bonds, which will be within the overall corporate bond limit of $45 billion.
In a statement, the finance ministry further said refinancing of buyer's credit for import of capital goods in the infrastructure sector will be placed under automatic route. In addition, the high-level committee decided to increase the maturity period of buyer's credit to maximum of five years, giving companies more time to repay.
ECBs are considered attractive as cost of raising the loan is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amounts of funds from international financial markets.
India is world leader in concentrated solar heating, says Ministry
Chennai: With some 80 different applications of concentrated solar heating in practice in the country, India is the world leader in CSH, the Ministry of New and Renewable Energy has said.
When you speak of solar energy, you think mainly of solar panels and electricity flowing from them. Then you would think of appliances such as solar water heaters and solar lamps.
But the big use of solar energy lies in directly using the sun’s heat for use in industry. Lots of manufacturing units require just low-to-medium temperature heat, up to 250 degrees Celsius, mostly for drying stuff. Today, this heating is done by burning fuel oil, coal or biomass.
Here is where India scores, both in terms of potential and also applications developed, says the Ministry.
“India is leading the world with around 80 CSH applications,” it has said in a background note to UNDP-GEF sponsored project for nurturing CSH technologies in India.
Without going into details of the 80 applications, the Ministry has noted that the predominant use of concentrated solar heating is in “institutional cooking”.
In India, the current CSH market is about 2,000-3,000 square metres a year (of the concentrated area), says MNRE. The Global Environment Fund project will complement MNRE’s efforts of CSH technology, awareness, capacity, market and financial barriers and increase CSH sales to 15,000 square metres by 2016.
Direct emission reductions from the demonstration and replication projects during the 5-year project duration will be 39,200 tonnes of carbon-dioxide equivalent.
Over the economic lifetime of 20 years for the project supported CSH applications, cumulative direct emission reductions will be 315,000 tonnes of CO2, the Ministry says.
When you speak of solar energy, you think mainly of solar panels and electricity flowing from them. Then you would think of appliances such as solar water heaters and solar lamps.
But the big use of solar energy lies in directly using the sun’s heat for use in industry. Lots of manufacturing units require just low-to-medium temperature heat, up to 250 degrees Celsius, mostly for drying stuff. Today, this heating is done by burning fuel oil, coal or biomass.
Here is where India scores, both in terms of potential and also applications developed, says the Ministry.
“India is leading the world with around 80 CSH applications,” it has said in a background note to UNDP-GEF sponsored project for nurturing CSH technologies in India.
Without going into details of the 80 applications, the Ministry has noted that the predominant use of concentrated solar heating is in “institutional cooking”.
In India, the current CSH market is about 2,000-3,000 square metres a year (of the concentrated area), says MNRE. The Global Environment Fund project will complement MNRE’s efforts of CSH technology, awareness, capacity, market and financial barriers and increase CSH sales to 15,000 square metres by 2016.
Direct emission reductions from the demonstration and replication projects during the 5-year project duration will be 39,200 tonnes of carbon-dioxide equivalent.
Over the economic lifetime of 20 years for the project supported CSH applications, cumulative direct emission reductions will be 315,000 tonnes of CO2, the Ministry says.
Essar Oil in $1.2-b pact with Colombia to buy crude oil
Mumbai: Colombia's Ecopetrol is to sell 12 million barrels of its Castilla crude oil to Essar Oil over one year, in a deal worth $1.2 billion (around Rs 6,720 crore).
In a bid to reduce its dependence on oil from Iran, Essar Oil has entered into an agreement with the largest and primary petroleum company in Colombia.
The Colombian giant is the fourth largest oil and gas company in Latin America and accounts for 60 per cent of Colombia’s production.
According to the company's financial report released on July 24 and on its Web site, Ecopetrol’s total unconsolidated sales climbed from $7.74 billion last year to $8.26 billion this year.
Analysts said Essar’s interest in Colombian oil reflects a recent boom, with production of crude in the South American nation almost doubling over the past six years.
The first shipment of two million barrels has already been dispatched from Colombia's Covenas Port on July 29. It would take 35 days for the vessel to berth in Vadinar, Gujarat.
New sources
Essar has significantly enhanced processing of heavy and ultra heavy crude oil at its Vadinar refinery to improve refining margins, Essar Oil CEO L. K. Gupta told participants in the first quarter FY13 earnings conference call on August 14.
Gupta said the company was “developing new and new sources of crude oil as a matter of our strategy to diversify the crude oil sources. It is a continuous on-going exercise”.
The April-June quarter was significant for Essar Oil with the company completing the optimisation project of its Vadinar refinery four months ahead of schedule. This facility is now India’s second largest single location refinery with an annual capacity of 20 million tonnes (4005000 barrels per day).
Iran contract
Refusing to be drawn in on the Iran oil contract at the earnings call, Gupta had said, “We are working with the Government of India guidelines”. He did not say any thing beyond that the company was meeting its “contractual commitments and that Iran is making its contractual commitments.”
In May, the company said it aims to buy 15-20 per cent of its crude oil needs from the domestic market, 35-40 per cent from Latin America and 30-40 per cent from West Asia.
In a bid to reduce its dependence on oil from Iran, Essar Oil has entered into an agreement with the largest and primary petroleum company in Colombia.
The Colombian giant is the fourth largest oil and gas company in Latin America and accounts for 60 per cent of Colombia’s production.
According to the company's financial report released on July 24 and on its Web site, Ecopetrol’s total unconsolidated sales climbed from $7.74 billion last year to $8.26 billion this year.
Analysts said Essar’s interest in Colombian oil reflects a recent boom, with production of crude in the South American nation almost doubling over the past six years.
The first shipment of two million barrels has already been dispatched from Colombia's Covenas Port on July 29. It would take 35 days for the vessel to berth in Vadinar, Gujarat.
New sources
Essar has significantly enhanced processing of heavy and ultra heavy crude oil at its Vadinar refinery to improve refining margins, Essar Oil CEO L. K. Gupta told participants in the first quarter FY13 earnings conference call on August 14.
Gupta said the company was “developing new and new sources of crude oil as a matter of our strategy to diversify the crude oil sources. It is a continuous on-going exercise”.
The April-June quarter was significant for Essar Oil with the company completing the optimisation project of its Vadinar refinery four months ahead of schedule. This facility is now India’s second largest single location refinery with an annual capacity of 20 million tonnes (4005000 barrels per day).
Iran contract
Refusing to be drawn in on the Iran oil contract at the earnings call, Gupta had said, “We are working with the Government of India guidelines”. He did not say any thing beyond that the company was meeting its “contractual commitments and that Iran is making its contractual commitments.”
In May, the company said it aims to buy 15-20 per cent of its crude oil needs from the domestic market, 35-40 per cent from Latin America and 30-40 per cent from West Asia.
Cipla partners Aspen for Australia foray
New Delhi: Drug maker Cipla is partnering South Africa’s Aspen Pharmacare to cater to the Australian market, it is learnt. Under the pact, Cipla would develop generic products, to be launched by Aspen in Australia.
A source privy to the development told Business Standard, currently, the two companies were identifying products for commercialisation.
The move follows a recent buyout by Aspen in the Australian pharmaceutical space. The company had acquired the over-the-counter and pharmaceutical divisions of Australian drug maker Sigma Pharmaceuticals for $800 million. Analysts suggest such a deal with Cipla could help Aspen augment its offerings, while keeping the development cost low.
Cipla, which has traditionally supplied low-cost generic drugs to foreign partners, may see a rise in its export revenue once the joint venture is operational. In 2011-12, Cipla’s formulation exports stood below expectations, growing a mere seven per cent.
Cipla did not respond to an e-mail questionnaire sent to it.
Shares of Cipla on Tuesday closed at Rs 359.90 on the BSE, up 1.4 per cent from Friday’s close.
Analysts say the deal is significant for Cipla, as this would give the company “the first mover advantage”, since most pharmaceutical companies are still focused on developed markets like the US and Japan. Africa, Russia and Brazil are likely to be the next destinations for Indian pharmaceutical majors. “Not many Indian companies are present in Australia. So, Cipla would have that advantage, and its strategy has always been to look at emerging markets. Though there may not be a significant gain for Cipla in the near future, it will definitely benefit from the deal in the longer term,” a sector analyst said.
Compared to those in the US and other developed markets, the pharmaceutical market in Australia is relatively smaller, at about $20 billion annually, and is growing at single-digit rate. However, analysts say it could be a lucrative market for companies manufacturing low-cost products. “So far, Australia has been largely an innovator-product driven market and has mostly been dominated by multinational companies. But, with a large number of branded drugs facing patent expiry in the immediate future, it presents opportunities for the generic sector. Also, there is an increasing attempt to keep the prices of medicines low,” says Ashish Mehra, managing director, Strategic Decision Group.
As in the US, pharmaceutical benefit managers are promoting generic medicines in Australia to reduce healthcare costs. “They are even incentivising pharmacies to substitute expensive drugs with generics. More than 90 per cent of the doctors are comfortable with this,” says Mehra.
“For a company like Cipla, which has developed brands in generics, this is a very good opportunity. Now, with their new SEZ (special economic zone) manufacturing facility, they can quickly pick up volumes and get operating leverage,” another analyst said. Unlike other Southeast Asian countries that have local generic players, Australia has very few generic drug makers, says Mehra. This creates an opportunity for Cipla, which is among the early entrants there.
According to the source, Cipla was also eying similar deals in the near future.
A source privy to the development told Business Standard, currently, the two companies were identifying products for commercialisation.
The move follows a recent buyout by Aspen in the Australian pharmaceutical space. The company had acquired the over-the-counter and pharmaceutical divisions of Australian drug maker Sigma Pharmaceuticals for $800 million. Analysts suggest such a deal with Cipla could help Aspen augment its offerings, while keeping the development cost low.
Cipla, which has traditionally supplied low-cost generic drugs to foreign partners, may see a rise in its export revenue once the joint venture is operational. In 2011-12, Cipla’s formulation exports stood below expectations, growing a mere seven per cent.
Cipla did not respond to an e-mail questionnaire sent to it.
Shares of Cipla on Tuesday closed at Rs 359.90 on the BSE, up 1.4 per cent from Friday’s close.
Analysts say the deal is significant for Cipla, as this would give the company “the first mover advantage”, since most pharmaceutical companies are still focused on developed markets like the US and Japan. Africa, Russia and Brazil are likely to be the next destinations for Indian pharmaceutical majors. “Not many Indian companies are present in Australia. So, Cipla would have that advantage, and its strategy has always been to look at emerging markets. Though there may not be a significant gain for Cipla in the near future, it will definitely benefit from the deal in the longer term,” a sector analyst said.
Compared to those in the US and other developed markets, the pharmaceutical market in Australia is relatively smaller, at about $20 billion annually, and is growing at single-digit rate. However, analysts say it could be a lucrative market for companies manufacturing low-cost products. “So far, Australia has been largely an innovator-product driven market and has mostly been dominated by multinational companies. But, with a large number of branded drugs facing patent expiry in the immediate future, it presents opportunities for the generic sector. Also, there is an increasing attempt to keep the prices of medicines low,” says Ashish Mehra, managing director, Strategic Decision Group.
As in the US, pharmaceutical benefit managers are promoting generic medicines in Australia to reduce healthcare costs. “They are even incentivising pharmacies to substitute expensive drugs with generics. More than 90 per cent of the doctors are comfortable with this,” says Mehra.
“For a company like Cipla, which has developed brands in generics, this is a very good opportunity. Now, with their new SEZ (special economic zone) manufacturing facility, they can quickly pick up volumes and get operating leverage,” another analyst said. Unlike other Southeast Asian countries that have local generic players, Australia has very few generic drug makers, says Mehra. This creates an opportunity for Cipla, which is among the early entrants there.
According to the source, Cipla was also eying similar deals in the near future.
India implementing 14,000 km natural gas pipelines: RPN Singh
New Delhi: India is currently implementing about 14,000 km of natural gas pipelines projects, which is in addition to over 11,000 km of existing cross-country pipelines, Minister of State for Petroleum & Natural Gas RPN Singh said.
"Another 14,000 km of pipelines infrastructure is under various stages of implementation," an oil ministry statement quoting Singh said. The development of pipeline infrastructure is an ongoing process which will progress with increase in demand of natural gas, Singh told the Rajya Sabha on Tuesday.
The government has initiated multi-pronged measures to increase availability of natural gas in the country including intensifying domestic exploration and expeditious production of coal bed methane (CBM), he said.
Singh also clarified that the government was not planning to deregulate diesel, cooking gas and kerosene rates. The government is providing Rs 0.82 a litre subsidy on kerosene and Rs 22.58 per cylinder on cooking gas from the budget, besides subsidy by state oil firms, he said. In 2011-12, state oil marketing firms lost Rs 138,541 crore revenue on selling diesel, cooking gas and kerosene below market rates.
"Another 14,000 km of pipelines infrastructure is under various stages of implementation," an oil ministry statement quoting Singh said. The development of pipeline infrastructure is an ongoing process which will progress with increase in demand of natural gas, Singh told the Rajya Sabha on Tuesday.
The government has initiated multi-pronged measures to increase availability of natural gas in the country including intensifying domestic exploration and expeditious production of coal bed methane (CBM), he said.
Singh also clarified that the government was not planning to deregulate diesel, cooking gas and kerosene rates. The government is providing Rs 0.82 a litre subsidy on kerosene and Rs 22.58 per cylinder on cooking gas from the budget, besides subsidy by state oil firms, he said. In 2011-12, state oil marketing firms lost Rs 138,541 crore revenue on selling diesel, cooking gas and kerosene below market rates.
Iran emerges largest buyer of Indian soyameal
New Delhi: After basmati and crude oil, it is soyameal that’s getting India closer to Iran.
The West Asian country has emerged as the largest buyer of soyameal from India in recent months displacing Japan from the top slot. Until now, Iran has been largely sourcing soyameal from Latin American countries such as Brazil and Argentina.
Soyameal is used for live stock feed in sectors such as poultry, piggery and fisheries.
In the April-July period, Iran imported 4.4 lakh tonnes of soya meal accounting for over half of the India’s exports of 8.25 lakh tonne for the period. This is according to the data collated by Soyabean Processors Association of India (SOPA).
"Iran's buying has provided a fillip to our exports," said Rajesh Agrawal, spokesperson for SOPA. "They (Iran) have come at a time when no other country is buying in such large quantities due to prevailing high prices".
Bilateral payments
The recent bilateral payment mechanism that allows importers in Iran to make payments in Indian rupees is aiding the soyameal exports. Iran’s total requirement of soyameal is estimated to be between 1.2 and 1.5 million tonnes. “We are in a position to supply at least 40-50 per cent of their demand,” Agarwal said.
Price rally
Soyameal prices have more than doubled in the past 10-12 months from the levels of around $280 a tonne to a high of $680. This price rally was triggered by the drought-reduced crop size in Brazil and Argentina last year.
Further, prices continue to rule high as the worst drought in 56 years faced by the US, the largest producer, has shrunk this year crop by 12 per cent. The contracts for the new season starting October have been settled at $610 a tonne.
"We have a good window till January-February next year, when the South American crop comes into the market. Also the firm domestic demand is expected to keep prices firm," Agarwal said.
Exports
India exported 40 lakh tonnes of soyameal worth Rs 7,017 crore in 2011-12. Japan, which accounted for 30 per cent of the India’s exports last year, has been the largest buyer for the past five years. Vietnam, China, Korea, Myanmar and the Philippines are the other large buyers of India soyameal.
The West Asian country has emerged as the largest buyer of soyameal from India in recent months displacing Japan from the top slot. Until now, Iran has been largely sourcing soyameal from Latin American countries such as Brazil and Argentina.
Soyameal is used for live stock feed in sectors such as poultry, piggery and fisheries.
In the April-July period, Iran imported 4.4 lakh tonnes of soya meal accounting for over half of the India’s exports of 8.25 lakh tonne for the period. This is according to the data collated by Soyabean Processors Association of India (SOPA).
"Iran's buying has provided a fillip to our exports," said Rajesh Agrawal, spokesperson for SOPA. "They (Iran) have come at a time when no other country is buying in such large quantities due to prevailing high prices".
Bilateral payments
The recent bilateral payment mechanism that allows importers in Iran to make payments in Indian rupees is aiding the soyameal exports. Iran’s total requirement of soyameal is estimated to be between 1.2 and 1.5 million tonnes. “We are in a position to supply at least 40-50 per cent of their demand,” Agarwal said.
Price rally
Soyameal prices have more than doubled in the past 10-12 months from the levels of around $280 a tonne to a high of $680. This price rally was triggered by the drought-reduced crop size in Brazil and Argentina last year.
Further, prices continue to rule high as the worst drought in 56 years faced by the US, the largest producer, has shrunk this year crop by 12 per cent. The contracts for the new season starting October have been settled at $610 a tonne.
"We have a good window till January-February next year, when the South American crop comes into the market. Also the firm domestic demand is expected to keep prices firm," Agarwal said.
Exports
India exported 40 lakh tonnes of soyameal worth Rs 7,017 crore in 2011-12. Japan, which accounted for 30 per cent of the India’s exports last year, has been the largest buyer for the past five years. Vietnam, China, Korea, Myanmar and the Philippines are the other large buyers of India soyameal.
PC sales will remain buoyant in Q3: IDC
New Delhi: Personal computer (PC) sales in India will continue to grow in the coming quarter owing to the festive season and buying by educational institutes, independent research firm IDC said on Tuesday.
However, going ahead, barring fulfilment for the largest deal noted so far — Electronics Corporation of Tamil Nadu (ELCOT), which looks to extend into 2013, IDC observes commercial PC spending to be badly affected by the prolonged crisis in the Euro Zone and other global markets.
"Rupee depreciation has further diluted the decision-making process among enterprises and small and medium businesses, which is stalling the growth, as noted in the recent past," Adwaita Govind Menon, Associate Research Director, IDC, said.
Meanwhile, the India PC market shipments for the second quarter (April – June) stood at 2.86 million units, a year-on-year growth of 15.7 per cent and 8.6 per cent over the previous quarter.
Lenovo sustained its leadership with a 17.1 per cent market share during the quarter. Hewlett-Packard tipped Dell to take the second place with 13.7 per cent market share. "Despite the environment around costs being volatile and unpredictable, consumers continued to be demanding, which has largely enabled the PC growth in second quarter 2012," Kiran Kumar, Senior Analyst, IDC, said.
Further, introduction of a new series of budget laptops coupled with a good balance of the product mix continued to boost their growth during the quarter, he said.
However, going ahead, barring fulfilment for the largest deal noted so far — Electronics Corporation of Tamil Nadu (ELCOT), which looks to extend into 2013, IDC observes commercial PC spending to be badly affected by the prolonged crisis in the Euro Zone and other global markets.
"Rupee depreciation has further diluted the decision-making process among enterprises and small and medium businesses, which is stalling the growth, as noted in the recent past," Adwaita Govind Menon, Associate Research Director, IDC, said.
Meanwhile, the India PC market shipments for the second quarter (April – June) stood at 2.86 million units, a year-on-year growth of 15.7 per cent and 8.6 per cent over the previous quarter.
Lenovo sustained its leadership with a 17.1 per cent market share during the quarter. Hewlett-Packard tipped Dell to take the second place with 13.7 per cent market share. "Despite the environment around costs being volatile and unpredictable, consumers continued to be demanding, which has largely enabled the PC growth in second quarter 2012," Kiran Kumar, Senior Analyst, IDC, said.
Further, introduction of a new series of budget laptops coupled with a good balance of the product mix continued to boost their growth during the quarter, he said.
Tuesday, August 21, 2012
Technopark launches software testing lab
Thiruvananthapuram: Technopark technology business incubator (T-TBI) has launched a software testing lab and certification centre.
This is a joint venture with SE Mentor Solutions and enjoys funding support from the Department of Science and Technology, Government of India.
K. C. Chandrasekharan Nair, Managing Director, T-TBI, inaugurated the facility here on Monday.
It will work as an apex entity with a strong testing arm to define quality standards to rate software projects and products.
It will also certify software products, which could be deployed as a marketing tool by respective companies.
The centre is equipped with facilities to test software products, projects and packages to be assessed on parameters such as usability, reliability and performance.
The centre will have high-end servers which will mainly focus on performance, load and volume testing.
It has a resource pool of various software testing tools globally used by professionals and open to companies in and outside Technopark.
Business start-ups and micro, small and medium enterprises (MSMEs) too may take advantage of the same.
Girish Babu, Chief Executive Officer, Technopark said that the centre would be a major boost to companies, especially start-ups planning to come up with own software products in the market.
It will offer services in key quality activities, including requirements, test and defects management, functional testing and business process testing. The centre will also help create value for companies experiencing difficulty in bringing in the required credibility to their software product/service.
This is a joint venture with SE Mentor Solutions and enjoys funding support from the Department of Science and Technology, Government of India.
K. C. Chandrasekharan Nair, Managing Director, T-TBI, inaugurated the facility here on Monday.
It will work as an apex entity with a strong testing arm to define quality standards to rate software projects and products.
It will also certify software products, which could be deployed as a marketing tool by respective companies.
The centre is equipped with facilities to test software products, projects and packages to be assessed on parameters such as usability, reliability and performance.
The centre will have high-end servers which will mainly focus on performance, load and volume testing.
It has a resource pool of various software testing tools globally used by professionals and open to companies in and outside Technopark.
Business start-ups and micro, small and medium enterprises (MSMEs) too may take advantage of the same.
Girish Babu, Chief Executive Officer, Technopark said that the centre would be a major boost to companies, especially start-ups planning to come up with own software products in the market.
It will offer services in key quality activities, including requirements, test and defects management, functional testing and business process testing. The centre will also help create value for companies experiencing difficulty in bringing in the required credibility to their software product/service.
International lace trade centre to be set up at Narsapuram in AP
Hyderabad: The Export Promotion Council for Handicrafts is setting up an international lace trade centre at Narsapuram in Andhra Pradesh with an outlay of Rs 15.33 crore.
This infrastructure is being created to facilitate the development and marketing of lace products.
N. Kiran Kumar Reddy, Chief Minister of Andhra Pradesh, will lay the foundation stone on Sunday at Narsapuram in West Godavari district.
Panabaka Lakshmi, Union Minister of State for Textiles, and State ministers will be present at the inauguration, according to a statement.
“The lace centre will be a great boon to persons involved with the work of producing, designing and exporting of lace products. Periodic visit of designers will enable the artisans, entrepreneurs and exporters to develop new product lines,’’ according to Rakesh Kumar, Executive Director, EPCH.
“EPCH is working actively to promote the handicrafts clusters at Narsapur region,’’ he said.
The project is a part of the Comprehensive Handicrafts Cluster Development Scheme of the Ministry of Textiles.
Narsapur is an important location for lace products. Over one lakh women are involved in making of lace products.
More than 80 per cent of the exports of lace products originate from the East and West Godavari region. Their workmanship is known in India and major markets of the US, Europe and Japan.
The council has already set up successful projects for cluster development at Saharanpur, Moradabad and Jodhpur.
During the first quarter this fiscal, handicraft exports touched Rs 4222.38 crore, registering a growth over 30 per cent. Export target for 2012-13 has been set as Rs 15,500 crore.
This infrastructure is being created to facilitate the development and marketing of lace products.
N. Kiran Kumar Reddy, Chief Minister of Andhra Pradesh, will lay the foundation stone on Sunday at Narsapuram in West Godavari district.
Panabaka Lakshmi, Union Minister of State for Textiles, and State ministers will be present at the inauguration, according to a statement.
“The lace centre will be a great boon to persons involved with the work of producing, designing and exporting of lace products. Periodic visit of designers will enable the artisans, entrepreneurs and exporters to develop new product lines,’’ according to Rakesh Kumar, Executive Director, EPCH.
“EPCH is working actively to promote the handicrafts clusters at Narsapur region,’’ he said.
The project is a part of the Comprehensive Handicrafts Cluster Development Scheme of the Ministry of Textiles.
Narsapur is an important location for lace products. Over one lakh women are involved in making of lace products.
More than 80 per cent of the exports of lace products originate from the East and West Godavari region. Their workmanship is known in India and major markets of the US, Europe and Japan.
The council has already set up successful projects for cluster development at Saharanpur, Moradabad and Jodhpur.
During the first quarter this fiscal, handicraft exports touched Rs 4222.38 crore, registering a growth over 30 per cent. Export target for 2012-13 has been set as Rs 15,500 crore.
Ranbaxy Laboratories launches authorized generic Actos in US
New Delhi: Ranbaxy Laboratories has launched authorized pioglitazone hydrochloride tablets, generic version of Takeda's diabetes drug sold under the brand Actos in the US, a Ranbaxy release said.
The Indian company shares 180-day marketing exclusivity with Mylan and Teva. Ranbaxy could rake in $208 million and $63 million in sales and profit respectively, according to Fortune Equity Brokers.
The product is used to improve glycemic controls in adults with type 2 diabetes mellitus. The drug has total annual sales of $2.7 billion in the US, according to drug market research firm IMS Health data.
Bill Winter, VP, Trade Sales and Distribution, North America, Ranbaxy said, "Ranbaxy is making available the full range of generic pioglitazonein 15 mg, 30 mg, and 45 mg tablets."
Ranbaxy Laboratories' share price closed at Rs 515.05, up 0.94% at the BSE on Friday.
The Indian company shares 180-day marketing exclusivity with Mylan and Teva. Ranbaxy could rake in $208 million and $63 million in sales and profit respectively, according to Fortune Equity Brokers.
The product is used to improve glycemic controls in adults with type 2 diabetes mellitus. The drug has total annual sales of $2.7 billion in the US, according to drug market research firm IMS Health data.
Bill Winter, VP, Trade Sales and Distribution, North America, Ranbaxy said, "Ranbaxy is making available the full range of generic pioglitazonein 15 mg, 30 mg, and 45 mg tablets."
Ranbaxy Laboratories' share price closed at Rs 515.05, up 0.94% at the BSE on Friday.
Sebi IPO norms to help SME bourses
New Delhi: The new profitability clause for firms planning to list on the main stock exchanges will help boost the Small and Medium Enterprises (SME) platforms launched by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Securities and Exchange Board of India (Sebi), last week, added the minimum profitability clause for firms wanting to list on the main stock exchanges. Accordingly, only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be allowed to make initial public offerings on the main exchanges.
Investment bankers said this provision would help SME exchanges attract companies.
Dara Kalyaniwala, vice-president (investment banking), Prabhudas Lilladher, said the move would push more smaller companies to seek listing on the SME exchange. Kalyaniwala cited some recent examples, where several companies barely crossed the new profitability limits. According to BS Research Bureau, at least 25 companies listed in 2011 had net profit figures less than Rs 15 crore. In 2012, at least three IPOs saw issuers with net profits below this number.
“Only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be able to come through this route,” Sebi decided in its board meeting last week. The move will be beneficial to both companies and investors, as the SME Exchange had more safeguards in place to support the smaller IPOs.
The smaller bourse keeps away very small investors, as minimum investment is pegged at Rs 1 lakh. Further, there are market makers and anchor investors for each scrip who ensure liquidity by giving two-way quotes.
Lakshman Gugulothu, chief executive officer, BSE SME Exchange, said the move would help make a clear demarcation between the main board and the SME exchange. “There was a lot of lot of overlap because even very small companies were going to the main board and raising Rs 30-40 crore. This had to be minimised. The Sebi move is a market development measure which will be positive for both the main exchange and the SME platform.”
This will induce investor appetite in the main exchange also, as only companies with considerable size and profit track record will be present there, say experts. Companies with paid-up capital of up to Rs 25 crore can be listed on the SME Exchange. Considering companies list at a premium, they could look at a market capitalisation of around Rs 250 crore. Usually companies look to divest up to 40 per cent of the equity. Thus, issuers looking to raise up to Rs 100 crore could come to the SME platform, say experts.
Gugulothu said the SME Exchange was picking up well and such moves would help add to the momentum. “Every week, we are seeing one or two companies coming for listing and few others filing prospectuses. In the next two months we will have 10-15 companies listed on the platform,” he added.
The Securities and Exchange Board of India (Sebi), last week, added the minimum profitability clause for firms wanting to list on the main stock exchanges. Accordingly, only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be allowed to make initial public offerings on the main exchanges.
Investment bankers said this provision would help SME exchanges attract companies.
Dara Kalyaniwala, vice-president (investment banking), Prabhudas Lilladher, said the move would push more smaller companies to seek listing on the SME exchange. Kalyaniwala cited some recent examples, where several companies barely crossed the new profitability limits. According to BS Research Bureau, at least 25 companies listed in 2011 had net profit figures less than Rs 15 crore. In 2012, at least three IPOs saw issuers with net profits below this number.
“Only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be able to come through this route,” Sebi decided in its board meeting last week. The move will be beneficial to both companies and investors, as the SME Exchange had more safeguards in place to support the smaller IPOs.
The smaller bourse keeps away very small investors, as minimum investment is pegged at Rs 1 lakh. Further, there are market makers and anchor investors for each scrip who ensure liquidity by giving two-way quotes.
Lakshman Gugulothu, chief executive officer, BSE SME Exchange, said the move would help make a clear demarcation between the main board and the SME exchange. “There was a lot of lot of overlap because even very small companies were going to the main board and raising Rs 30-40 crore. This had to be minimised. The Sebi move is a market development measure which will be positive for both the main exchange and the SME platform.”
This will induce investor appetite in the main exchange also, as only companies with considerable size and profit track record will be present there, say experts. Companies with paid-up capital of up to Rs 25 crore can be listed on the SME Exchange. Considering companies list at a premium, they could look at a market capitalisation of around Rs 250 crore. Usually companies look to divest up to 40 per cent of the equity. Thus, issuers looking to raise up to Rs 100 crore could come to the SME platform, say experts.
Gugulothu said the SME Exchange was picking up well and such moves would help add to the momentum. “Every week, we are seeing one or two companies coming for listing and few others filing prospectuses. In the next two months we will have 10-15 companies listed on the platform,” he added.
CRO market to double to $1 billion by 2016: Frost & Sullivan
New Delhi: Driven by a large, easy-to-access population, cost arbitrage of up to 30-50% over US and improved regulations, the Indian clinical research market is set to more than double to cross $1 billion by 2016 according to Frost & Sullivan.
The local $485 million clinical research market is growing at a 11-13% as the country gains increasing favour as a base for global clinical trials (phase I-IV), it said.
Multinational CROs still dominate the nation's CRO market. While foreign and local CROs and foreign MNCs focus on global trials, Indian pharma companies look at conducting local trials.
"Therapeutic areas in which research can be conducted in India are varied, and this is likely to result in more number of studies in the country," a Frost & Sullivan release said. "Emerging areas, such as diagnostic research are also expected to drive the India CRO market," it added.
The growth is further bolstered by the Drug Controller General of India's (DCGI) efforts to create a favourable environment for clinical trials. The improved regulatory environment with stringent enforcement laws will also bring more credibility to trials in India, the release said.
However, increasing competition, quality concerns and lack of quality infrastructure in smaller tier II sites are some factors that impede the growth rate of the CRO market.
The local $485 million clinical research market is growing at a 11-13% as the country gains increasing favour as a base for global clinical trials (phase I-IV), it said.
Multinational CROs still dominate the nation's CRO market. While foreign and local CROs and foreign MNCs focus on global trials, Indian pharma companies look at conducting local trials.
"Therapeutic areas in which research can be conducted in India are varied, and this is likely to result in more number of studies in the country," a Frost & Sullivan release said. "Emerging areas, such as diagnostic research are also expected to drive the India CRO market," it added.
The growth is further bolstered by the Drug Controller General of India's (DCGI) efforts to create a favourable environment for clinical trials. The improved regulatory environment with stringent enforcement laws will also bring more credibility to trials in India, the release said.
However, increasing competition, quality concerns and lack of quality infrastructure in smaller tier II sites are some factors that impede the growth rate of the CRO market.
Friday, August 17, 2012
iGATE to open new facility in US, create 250 jobs
Bangalore: Nasdaq-listed iGATE will invest $1 million to open a new facility in Loudoun County in Washington DC, which will create 250 new jobs over the next 2-3 years.
Increasing visa costs and access to government projects have prompted iGATE to open a development centre in the US. In this development centre, the company will design, build and operate US Federal Government-related outsourcing projects. Additionally, it will create 250 new jobs over the next two to three years, according to company officials.
According to US laws, federal government projects cannot be done out of the US for security purposes. Some other reasons for iGATE to open a development centre in the US are political proximity and adequate skilled technical manpower. This is the fourth facility in the US for iGATE.
“This facility enhances our ability to deliver top-quality, innovative IT solutions to our government customers,” said Timothy Coffin, President, iGate Government Solutions.
Washington DC, which has 900 federal government contractors, employs 20 per cent of the county’s IT workforce, according to Loudoun county officials.
In an election year in the US, the topic of jobs in the US is increasingly coming to the fore and this investment by iGate will help to quell concerns around Indian companies taking away US jobs, according to industry watchers. “Also, Indian IT companies have to be more global and clients are increasingly asking them to deliver out of different geographies,” said Sanjoy Sen, Senior Director, Deloitte.
Companies such as HCL Technologies plans to create 10,000 jobs by 2015 in the US and European markets and others such as WNS Holdings set up an office in South Carolina from July. Similarly, TCS, Infosys and Wipro have a presence in the American continent.
Increasing visa costs and access to government projects have prompted iGATE to open a development centre in the US. In this development centre, the company will design, build and operate US Federal Government-related outsourcing projects. Additionally, it will create 250 new jobs over the next two to three years, according to company officials.
According to US laws, federal government projects cannot be done out of the US for security purposes. Some other reasons for iGATE to open a development centre in the US are political proximity and adequate skilled technical manpower. This is the fourth facility in the US for iGATE.
“This facility enhances our ability to deliver top-quality, innovative IT solutions to our government customers,” said Timothy Coffin, President, iGate Government Solutions.
Washington DC, which has 900 federal government contractors, employs 20 per cent of the county’s IT workforce, according to Loudoun county officials.
In an election year in the US, the topic of jobs in the US is increasingly coming to the fore and this investment by iGate will help to quell concerns around Indian companies taking away US jobs, according to industry watchers. “Also, Indian IT companies have to be more global and clients are increasingly asking them to deliver out of different geographies,” said Sanjoy Sen, Senior Director, Deloitte.
Companies such as HCL Technologies plans to create 10,000 jobs by 2015 in the US and European markets and others such as WNS Holdings set up an office in South Carolina from July. Similarly, TCS, Infosys and Wipro have a presence in the American continent.
Piramal Enterprises picks up 27% stake in Bluebird Aero Systems
Mumbai: Piramal Enterprises, of the Ajay Piramal-led group, joins the list of Indian companies that see a growing opportunity in the Defence sector.
It has picked up a 27.83 per cent stake in Bluebird Aero Systems, an Israel-based unmanned air systems manufacturer, for about Rs 40 crore ($7 million). Bluebird is set to bid for contracts in India.
Piramal’s deal with Bluebird Aero Systems is considered unique as the company is an initiative of former engineers of the Israel Defence Forces. Bluebird has an agreement with Bangalore’s Dynamatic Technologies for manufacturing and marketing mini and micro tactical, unmanned aerial vehicles in India.
Companies such as Tata Motors, Mahindra and Mahindra and L&T have a presence in the Defence sector, as they hope to capitalise on the offset clause — foreign suppliers must have a percentage of local content in the orders they bag to supply to the sector. India’s Defence budget for this year is up 17 per cent to $38 billion.
BSE-listed Rossell India, which recently diversified into Defence procurement, has floated a joint venture with CAE, Canada, for simulation training solutions for the Defence sector. Following FIPB approval, Rossell India is to hold 74 per cent, with CAE holding 26 per cent share in the venture.
The venture will focus on providing training solutions for Defence procurement. An official said the Defence Ministry has specifically recognised simulation and training services as being eligible under the Indian offset criteria for Defence programmes.
Early this month, Mahindra and Mahindra and New York-headquartered Telephonics Corporations announced a joint venture to provide advanced airborne surveillance and communication systems to the Defence Ministry and Civil sector. The tie-up envisages establishing a plant at Bangalore, which will initially manufacture and service airborne radar systems being supplied to Hindustan Aeronautics.
Tata Motors will invest around Rs 600 crore on developing Futuristic Infantry Combat Vehicles. The company’s current market share in the wheeled military segment is approximately 40 per cent, and in the internal security segment is 75 per cent. “We work very closely with the Defence Research and Development Organisation on the potential needs of the forces,” said a company spokesperson.
It has picked up a 27.83 per cent stake in Bluebird Aero Systems, an Israel-based unmanned air systems manufacturer, for about Rs 40 crore ($7 million). Bluebird is set to bid for contracts in India.
Piramal’s deal with Bluebird Aero Systems is considered unique as the company is an initiative of former engineers of the Israel Defence Forces. Bluebird has an agreement with Bangalore’s Dynamatic Technologies for manufacturing and marketing mini and micro tactical, unmanned aerial vehicles in India.
Companies such as Tata Motors, Mahindra and Mahindra and L&T have a presence in the Defence sector, as they hope to capitalise on the offset clause — foreign suppliers must have a percentage of local content in the orders they bag to supply to the sector. India’s Defence budget for this year is up 17 per cent to $38 billion.
BSE-listed Rossell India, which recently diversified into Defence procurement, has floated a joint venture with CAE, Canada, for simulation training solutions for the Defence sector. Following FIPB approval, Rossell India is to hold 74 per cent, with CAE holding 26 per cent share in the venture.
The venture will focus on providing training solutions for Defence procurement. An official said the Defence Ministry has specifically recognised simulation and training services as being eligible under the Indian offset criteria for Defence programmes.
Early this month, Mahindra and Mahindra and New York-headquartered Telephonics Corporations announced a joint venture to provide advanced airborne surveillance and communication systems to the Defence Ministry and Civil sector. The tie-up envisages establishing a plant at Bangalore, which will initially manufacture and service airborne radar systems being supplied to Hindustan Aeronautics.
Tata Motors will invest around Rs 600 crore on developing Futuristic Infantry Combat Vehicles. The company’s current market share in the wheeled military segment is approximately 40 per cent, and in the internal security segment is 75 per cent. “We work very closely with the Defence Research and Development Organisation on the potential needs of the forces,” said a company spokesperson.
Cairn India buys 60% in South African gas block
New Delhi: In its first deal since being acquired by Vedanta Resources, Cairn India has acquired a 60 per cent stake from PetroSA in an oil and gas exploration block on the west coast of South Africa. With this, Cairn India’s presence abroad would now be extended beyond Sri Lanka.
The block comprises an existing gas field, discovered in 1987. Cairn India would conduct seismic surveys and carry out initial exploration drilling. The time taken to begin production would depend on the nature and volume of hydrocarbons found.
“This is an important step for the company’s growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region,” said P Elango, Cairn India director (strategy).
Elango is scheduled to take over as officiating chief executive from September 1. He would replace Rahul Dhir, who had resigned a week earlier.
Cairn India would be the operator in the block, while PetroSA, owned by the government of that country, would hold the remaining interest, said a company statement. The closure of the transaction is subject to regulatory approvals from the South African government.
Cairn India would hold the stake through a wholly-owned South African subsidiary. The company has made no payment for the deal. However, in the initial phase, it would carry PetroSA’s share of investment towards the work programme. The consideration for the stake acquired in the block would be through investment linked to the work programme for developing the asset. A company statement said it had signed a farm-in agreement for exploration in offshore Block 1. The block would be an anchor exploration asset in South Africa, and would augment Cairn India’s existing portfolio, the company said.
Block 1 covers 19,922 sq km and currently, initial stages of exploration are underway there. The block has an existing gas discovery, as well as identified oil and gas leads and prospects. It is located in the Orange Basin, along the north-western maritime border between South Africa and Namibia.
The block comprises an existing gas field, discovered in 1987. Cairn India would conduct seismic surveys and carry out initial exploration drilling. The time taken to begin production would depend on the nature and volume of hydrocarbons found.
“This is an important step for the company’s growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region,” said P Elango, Cairn India director (strategy).
Elango is scheduled to take over as officiating chief executive from September 1. He would replace Rahul Dhir, who had resigned a week earlier.
Cairn India would be the operator in the block, while PetroSA, owned by the government of that country, would hold the remaining interest, said a company statement. The closure of the transaction is subject to regulatory approvals from the South African government.
Cairn India would hold the stake through a wholly-owned South African subsidiary. The company has made no payment for the deal. However, in the initial phase, it would carry PetroSA’s share of investment towards the work programme. The consideration for the stake acquired in the block would be through investment linked to the work programme for developing the asset. A company statement said it had signed a farm-in agreement for exploration in offshore Block 1. The block would be an anchor exploration asset in South Africa, and would augment Cairn India’s existing portfolio, the company said.
Block 1 covers 19,922 sq km and currently, initial stages of exploration are underway there. The block has an existing gas discovery, as well as identified oil and gas leads and prospects. It is located in the Orange Basin, along the north-western maritime border between South Africa and Namibia.
Abhijeet Group in $7-bn coal deal with US firm
New Delhi: The Nagpur-based Abhijeet Group on Thursday signed a $7-billion (Rs 39,069 crore) deal with US-based FJS Energy LLC for coal supply to fire its steel and power units in India. The New Jersey-based company said it would supply coal from its affiliates, FJSE Marshall Inc and FJSE River Coal, for 25 years.
“The deal would benefit both companies optimally,” said M P Narayanan, chairman of the FJS Energy board. “Abhijeet Group is a major client for coal producers and suppliers in the US.”
Abhijeet, led by Manoj Jayaswal, has significant presence in the core sector areas of power, roads, mining, engineering procurement and construction, ferro alloys, steel and cement. It has a power generation capacity of 2,671 Mw — the 271-Mw Mihan project in Nagpur, the 1,080-Mw Chandwa project in Jhark-hand and the 1,320-Mw Banka project in Bihar. It is also setting up 10-million-tonne per annum (mtpa) steel-making capacity over three states — Jharkhand, West Bengal and Maharashtra.
The Group’s Executive Director, Anand Kumar, said, “FJS Energy is a reliable and high-quality coal producer in the US. The import will help us meet the increasing demand for energy and steel here.”
FJS Energy was founded in 2011 by energy sector professionals from India and North America as a global resource and energy enterprise. The company aims to secure five per cent market share in the Indian coal import business.
“The deal would benefit both companies optimally,” said M P Narayanan, chairman of the FJS Energy board. “Abhijeet Group is a major client for coal producers and suppliers in the US.”
Abhijeet, led by Manoj Jayaswal, has significant presence in the core sector areas of power, roads, mining, engineering procurement and construction, ferro alloys, steel and cement. It has a power generation capacity of 2,671 Mw — the 271-Mw Mihan project in Nagpur, the 1,080-Mw Chandwa project in Jhark-hand and the 1,320-Mw Banka project in Bihar. It is also setting up 10-million-tonne per annum (mtpa) steel-making capacity over three states — Jharkhand, West Bengal and Maharashtra.
The Group’s Executive Director, Anand Kumar, said, “FJS Energy is a reliable and high-quality coal producer in the US. The import will help us meet the increasing demand for energy and steel here.”
FJS Energy was founded in 2011 by energy sector professionals from India and North America as a global resource and energy enterprise. The company aims to secure five per cent market share in the Indian coal import business.
India's grassroot products find market on foreign shores
Ahmedabad: Unique, innovative products and practices by grassroot innovators of India are seeing a surge demand in foreign countries. The Honey Bee Network (HBN) and National Innovation Foundation (NIF), which scout and document innovations from remote areas in the country, have received enquiry from 40 countries for 27 products. Out of these, the innovators have sold nine innovations to individuals or companies in many countries.
Mitticool, a clay refrigerator that works without electricity, has attracted companies in the US and Spain. The green innovator, Mansukh Prajapati, has already sold several units of the refrigerator to companies in these countries.
The refrigerator is among eight other products, which have been sold to countries like UK, Germany, Sri Lanka, Philippines, Pakistan, South Africa and several other African countries.
"Biomass gassifier, food processing machine, onion transplanter, milking machine, coconut tree climber, sanitary napkin machine, eczema cream, sugar cane bud chipper are the products, which have been sold to many countries," said Anil Gupta, founder of HBN and a professor at the Indian Institute of Management Ahmedabad.
Other products like Ajooba tubelight, clay cooker, gas iron, hydro electric turbine, natural water cooler, pole climber and solar mosquito destroyer are among those that have invited queries and are under various stages of discussion.
"Our focus is not just to sell products or practices to these countries but also to learn from them. For instance, HBN's newsletter has published innovative practices from many African countries. Our focus is not only to give them but also learn from them," said Gupta.
Mitticool, a clay refrigerator that works without electricity, has attracted companies in the US and Spain. The green innovator, Mansukh Prajapati, has already sold several units of the refrigerator to companies in these countries.
The refrigerator is among eight other products, which have been sold to countries like UK, Germany, Sri Lanka, Philippines, Pakistan, South Africa and several other African countries.
"Biomass gassifier, food processing machine, onion transplanter, milking machine, coconut tree climber, sanitary napkin machine, eczema cream, sugar cane bud chipper are the products, which have been sold to many countries," said Anil Gupta, founder of HBN and a professor at the Indian Institute of Management Ahmedabad.
Other products like Ajooba tubelight, clay cooker, gas iron, hydro electric turbine, natural water cooler, pole climber and solar mosquito destroyer are among those that have invited queries and are under various stages of discussion.
"Our focus is not just to sell products or practices to these countries but also to learn from them. For instance, HBN's newsletter has published innovative practices from many African countries. Our focus is not only to give them but also learn from them," said Gupta.
Thursday, August 16, 2012
Volvo-Eicher JV to drive in new-generation trucks
Mumbai: Volvo, the world's second-largest truck maker, will soon renew its global rivalry with top player Daimler on the Indian roads through its joint venture with Eicher Motors.
Even as Daimler India gears up to launch its BharatBenz range of trucks within a few months, the Volvo-Eicher venture is readying a whole new range of trucks right from 5 tonne to 49 tonne and above with new platforms, engines and cabins.
"We want to make a big breakthrough in the heavy duty trucks," Siddhartha Lal, MD of Eicher Motors, said. "We have new engines from Volvo's global platform and we will have full new modern truck product range powered by these engines," he added.
While Lal declined to share the specifics, industry insiders said the new trucks will be based on Volvo's UD platform (from Nissan Diesel) and will be priced at a 10% premium to the existing range.
The new range is expected to help VE Commercial Vehicles, the joint venture between Volvo and Eicher, expand its presence in medium and heavy truck segments (25-49 tonne), where the company has minimal share. VECV showcased its entire range-which will take 2-3 years to hit the road-to dealers and suppliers in May. Industry sources say they will match BharatBenz trucks in quality and cost parameters.
One of the suppliers working on the project says the new Volvo range will offer stiff competition to Tata Motors Prima and Ultra trucks as well as Ashok Leyland's U Truck. Industry experts say Eicher's attempt to enter the heavy-duty truck space in 2005-06 did not get a good response from the market and that's how the tie-up with Volvo came about four years ago. "With Volvo's global platform and engines, VECV could now have a compelling product proposition in the core medium and heavy duty truck market, which will bridge the critical gap in the portfolio and could make the company a serious player," V G Ramakrishnan, senior director, Frost & Sullivan said.
VECV has already invested 700 crore in the business and it has lined up another 1,000 crore for the next few years, which will go into R&D, engine manufacturing facility, bus body building plant and new paint shop. Lal, the company MD, said VECV targets 15% share in the Indian heavy-duty truck market by 2015, up from 3.4% now. It has 11% share in the overall truck market, thanks to 31% share in the light duty and medium duty segment of 5-12 tonne.
Even as Daimler India gears up to launch its BharatBenz range of trucks within a few months, the Volvo-Eicher venture is readying a whole new range of trucks right from 5 tonne to 49 tonne and above with new platforms, engines and cabins.
"We want to make a big breakthrough in the heavy duty trucks," Siddhartha Lal, MD of Eicher Motors, said. "We have new engines from Volvo's global platform and we will have full new modern truck product range powered by these engines," he added.
While Lal declined to share the specifics, industry insiders said the new trucks will be based on Volvo's UD platform (from Nissan Diesel) and will be priced at a 10% premium to the existing range.
The new range is expected to help VE Commercial Vehicles, the joint venture between Volvo and Eicher, expand its presence in medium and heavy truck segments (25-49 tonne), where the company has minimal share. VECV showcased its entire range-which will take 2-3 years to hit the road-to dealers and suppliers in May. Industry sources say they will match BharatBenz trucks in quality and cost parameters.
One of the suppliers working on the project says the new Volvo range will offer stiff competition to Tata Motors Prima and Ultra trucks as well as Ashok Leyland's U Truck. Industry experts say Eicher's attempt to enter the heavy-duty truck space in 2005-06 did not get a good response from the market and that's how the tie-up with Volvo came about four years ago. "With Volvo's global platform and engines, VECV could now have a compelling product proposition in the core medium and heavy duty truck market, which will bridge the critical gap in the portfolio and could make the company a serious player," V G Ramakrishnan, senior director, Frost & Sullivan said.
VECV has already invested 700 crore in the business and it has lined up another 1,000 crore for the next few years, which will go into R&D, engine manufacturing facility, bus body building plant and new paint shop. Lal, the company MD, said VECV targets 15% share in the Indian heavy-duty truck market by 2015, up from 3.4% now. It has 11% share in the overall truck market, thanks to 31% share in the light duty and medium duty segment of 5-12 tonne.
Indirect tax collections up 23% in July
New Delhi: Indirect tax collections rose 23 per cent to Rs 39,787 crore in July, against Rs 32,289 crore in the corresponding month last year. For this financial year, the government has set an indirect tax target of Rs 5.05 lakh crore, 27 per cent more than the mop-up in 2011-12.
A meagre eight per cent growth in customs collections, owing to contraction in imports, pulled down the overall indirect tax mop-up. Collections from levy of customs duty stood at Rs 12,486 crore in July, against Rs 11,540 crore in the year-ago period.
Excise and service tax collections, however, recorded 27.6 per cent and 37.4 per cent growth, respectively, owing to a two-percentage point rise in both excise and service tax in the Budget. The growth in these collections was also aided by the introduction of a negative list for services, which helped widen the tax base. Excise duty collections in July stood at Rs 15,715 crore, against Rs 12,316 crore in the year-ago period. This was despite official data showing industrial production contracted 0.1 per cent in the quarter ended June. Service tax collections rose to Rs 11,586 crore, compared with Rs 8,433 crore in the corresponding month last year.
Source: Venture Intelligence
For the April-July period, indirect tax collections rose 14.5 per cent to Rs 1.25 lakh crore, against Rs 1.09 lakh crore in the year-ago period. While service tax collections rose about 40 per cent to Rs 30,917 crore in this period from Rs 21,100 crore in the year-ago period, excise duty collections rose 18.4 per cent to Rs 42,934 crore. Customs duty collections increased just 0.8 per cent to Rs 51,173 crore.
A meagre eight per cent growth in customs collections, owing to contraction in imports, pulled down the overall indirect tax mop-up. Collections from levy of customs duty stood at Rs 12,486 crore in July, against Rs 11,540 crore in the year-ago period.
Excise and service tax collections, however, recorded 27.6 per cent and 37.4 per cent growth, respectively, owing to a two-percentage point rise in both excise and service tax in the Budget. The growth in these collections was also aided by the introduction of a negative list for services, which helped widen the tax base. Excise duty collections in July stood at Rs 15,715 crore, against Rs 12,316 crore in the year-ago period. This was despite official data showing industrial production contracted 0.1 per cent in the quarter ended June. Service tax collections rose to Rs 11,586 crore, compared with Rs 8,433 crore in the corresponding month last year.
Source: Venture Intelligence
For the April-July period, indirect tax collections rose 14.5 per cent to Rs 1.25 lakh crore, against Rs 1.09 lakh crore in the year-ago period. While service tax collections rose about 40 per cent to Rs 30,917 crore in this period from Rs 21,100 crore in the year-ago period, excise duty collections rose 18.4 per cent to Rs 42,934 crore. Customs duty collections increased just 0.8 per cent to Rs 51,173 crore.
Green nod for 2,040 projects in last 3 years, says Govt
New Delhi: In the past three years, projects in Gujarat received the highest number environmental clearances, followed by Andhra Pradesh and Maharashtra.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
Green nod for 2,040 projects in last 3 years, says Govt
New Delhi: In the past three years, projects in Gujarat received the highest number environmental clearances, followed by Andhra Pradesh and Maharashtra.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
Outbound deals push up PE, M&A values in July
New Delhi: An increase in outbound deals led to a jump in the total M&A and PE deal value in July 2012 to $2 billion, from $1.4 billion in the previous month.
Raja Lahiri, Partner, Transaction Advisory Services, Grant Thornton India, said this is a welcome surprise, given the overall economic head-winds.
The total number of deals in July, though, posted a slight decline to 75, compared with 83 deals in June.
Outbound value
The total value of outbound deals in July was $1.30 billion (17 deals), higher than the corresponding values of $0.85 billion (12 deals) and $0.14 billion (8 deals) during the same month in 2011 and 2010, respectively.
Inbound deals in July were worth $0.13 billion (8 deals) as compared with $1.50 billion (10 deals) and $1.15 billion (5 deals) during the corresponding month in 2011 and 2010, respectively
July witnessed increase in M&As — $1.9 billion, from 44 deals, compared with $0.7 billion/48 deals in June 2012. This was largely driven by outbound transactions such as the GMR-UFS deal ($0.6 billion), Grasim-Terrace Bay Pulp ($0.36 billion) and Crompton Greaves-ZIV Group ($0.19 billion), Lahiri said.
Though PE/VC activity was good in terms of number of deals ($166 million/31 deals), values declined over June ($762 million).
Average deal sizes have fallen following increased activity in the VC deal space.
PE activity
“PE/VC deal space continued to see activity in the e-commerce / Internet space and in renewable energy. Companies which have cash will drive M&A deal momentum going forward, since the time offers good deal opportunities in terms of valuation,” Lahiri said.
PE deal values amounted to $0.17 billion (31 deals) in July 2012, lower than the $0.74 billion (35 deals) and $0.76 billion (21 deals) garnered during the corresponding month in 2011 and 2010, respectively
Also, there were two IPOs listed in July, that raised $13.40 million from the public.
The total amount raised through IPOs during January-December 2011 was $1.20 billion, from 30 IPOs.
Raja Lahiri, Partner, Transaction Advisory Services, Grant Thornton India, said this is a welcome surprise, given the overall economic head-winds.
The total number of deals in July, though, posted a slight decline to 75, compared with 83 deals in June.
Outbound value
The total value of outbound deals in July was $1.30 billion (17 deals), higher than the corresponding values of $0.85 billion (12 deals) and $0.14 billion (8 deals) during the same month in 2011 and 2010, respectively.
Inbound deals in July were worth $0.13 billion (8 deals) as compared with $1.50 billion (10 deals) and $1.15 billion (5 deals) during the corresponding month in 2011 and 2010, respectively
July witnessed increase in M&As — $1.9 billion, from 44 deals, compared with $0.7 billion/48 deals in June 2012. This was largely driven by outbound transactions such as the GMR-UFS deal ($0.6 billion), Grasim-Terrace Bay Pulp ($0.36 billion) and Crompton Greaves-ZIV Group ($0.19 billion), Lahiri said.
Though PE/VC activity was good in terms of number of deals ($166 million/31 deals), values declined over June ($762 million).
Average deal sizes have fallen following increased activity in the VC deal space.
PE activity
“PE/VC deal space continued to see activity in the e-commerce / Internet space and in renewable energy. Companies which have cash will drive M&A deal momentum going forward, since the time offers good deal opportunities in terms of valuation,” Lahiri said.
PE deal values amounted to $0.17 billion (31 deals) in July 2012, lower than the $0.74 billion (35 deals) and $0.76 billion (21 deals) garnered during the corresponding month in 2011 and 2010, respectively
Also, there were two IPOs listed in July, that raised $13.40 million from the public.
The total amount raised through IPOs during January-December 2011 was $1.20 billion, from 30 IPOs.
Govt approves Mars Orbitter Mission
New Delhi: India plans to send a mission to the Red Planet, Mars. This will be a huge step for India in the area of science and technology, according to Dr Manmohan Singh, Prime Minister of India.
The Government of India has approved Mars Orbitter Mission to collect important scientific information including climate, geology, origin, evolution and sustainability of life on the planet. The mission was announced during a speech marking the 66th anniversary of India's independence.
India will be sixth country to launch a mission to Mars, after US, Russia, Europe, Japan and China. India will be the first Asian country to do so because the probes sent by China and Japan had to be abandoned en route.
The Mars Orbiter Mission is expected to be launched in November 2013 with a 25 kg scientific payload from Indian Space Research Organisation (ISRO), Sriharikota, Andhra Pradesh, by the Polar Satellite Launch Vehicle (PSLV). It will take around 300 days to reach Martian orbit. It will be placed in an orbit of 500 x 80,000 km around Mars.
The Government of India has approved Mars Orbitter Mission to collect important scientific information including climate, geology, origin, evolution and sustainability of life on the planet. The mission was announced during a speech marking the 66th anniversary of India's independence.
India will be sixth country to launch a mission to Mars, after US, Russia, Europe, Japan and China. India will be the first Asian country to do so because the probes sent by China and Japan had to be abandoned en route.
The Mars Orbiter Mission is expected to be launched in November 2013 with a 25 kg scientific payload from Indian Space Research Organisation (ISRO), Sriharikota, Andhra Pradesh, by the Polar Satellite Launch Vehicle (PSLV). It will take around 300 days to reach Martian orbit. It will be placed in an orbit of 500 x 80,000 km around Mars.
Tuesday, August 14, 2012
L&T secures orders worth over Rs 2,008 cr
In power transmission and distribution, it has secured orders worth Rs 607 crore.
Major orders include one from Chamundeshwari Electricity Supply Corporation Ltd for linking of feeders to rural areas to provide continuous supply to installations at Hassan, HN Pura and CR Patna Divisions.
Another order is for construction of 220kV &765 kV switchyards in Uttar Pradesh.
On the international front, it has secured an order for supply and installation of a 20/33 kV grid station in UAE.
L&T’s buildings & factories division has got orders worth Rs 674 crore, which includes a contract from the Airports Authority of India for the construction of a new integrated terminal building at Chandigarh Airport.
It has also secured an order for the construction of an IT campus in Hyderabad.
L&T’s construction division has secured a turnkey order worth Rs 155 crore from Greater Mohali Area Development Authority for the construction of roads, water supply, electrical services (street-lighting) and development of parks.
L&T has also bagged orders worth Rs 275 crore from the Kolkata Metropolitan Development Authority for design and construction of a four-lane flyover, rail overbridge and viaduct.
In addition, the company’s construction arm has got additional orders worth Rs 297 crore in various ongoing projects.
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