Kochi: The Tea Trade Association of Cochin has decided to set up a state-of-the-art Tea Trade centre at an estimated cost of Rs 100 crore. This will be funded partly through the Union Commerce Ministry and partly through equity contribution from various stakeholders. The proposal is supported by The Tea Board of India.
It will be set up at 10 acres provided by the Cochin Port Trust. The association's managing committee has approved the feasibility study for establishing the centre and has decided to identify the potential investors among its members.
The Tea centre will aim at consolidation of various activities connected with tea trade under one roof with key focus on centralizing the warehousing operations, which is presently done by 40 independent warehouse operators.
In addition, the tea centre plans to introduce the concept of common processing facilities, which will be used by various stakeholders as an initiative to promote production of value added tea in the domestic market dominated by trading in dust variety of tea for domestic consumption.
According to V Unnikrishnan, outgoing chairman of the association, the centre could lead to enhancement of tea exports from the centre taking advantage of the facilities of Kochi port.
The Cochin Port Trust chairman Paul Antony said Willingdon Island in Kochi port is the main tea auction centre in South India with large number of brokers, buyers, and sellers transacting about 70 million kg of tea every year.
Success in my Habit
Friday, September 28, 2012
MyTVS, ABC Bearings joint venture to offer 'one-stop' solution for cars
hmedabad: In what is seen as the equivalent of bigger retail stores possibly ‘edging out’ the neighborhood kirana kiosks, MyTVS, leading multi-brand car service provider from the TVS Group, on Thursday announced to set up about 15 workshops across Gujarat by 2015 to provide one-stop solutions to car owners, post-warranty period.
This may impact the roadside garages, spare part shops and mechanics.
R Srivatchan, President, TVS Automobile Solutions Ltd, said here that these state-of-the-art workshops would provide a “retail experience” to car owners. The after-market industry in this sector isworth Rs 24,000 crore, 50% of which is in the organised sector, he said.
Across India, MyTVS plans to set up nearly 100 such workshops by 2014 whose expected revenues would be around Rs 500 crore per annum, he said.
Srivatchan said that his company has tied up with the promoters of ABC Bearings Ltd, a BSE-listed company in a 70:30 joint venture to set up the first outlet in Vadodara in October. The JV aims to be the
largest multi-brand car service network in Gujarat, providing integrated car service solutions.
Earlier, MyTVS had tied up with the Rajgarhia Group in Kolkata for a similar business. The TVS Group would be expanding this network through such local joint ventures and franchisees, and soon enter the NCR region.
Excluding the cost of land, a workshop would cost Rs two crore each, he said. The JV business would also be entering into annual maintenance contracts (AMCs) with car owners for up to Rs 3,000 per annum.
MyTVS has a brand presence across India through its 24x7 emergency roadside assistance service business. It provides telematics-based vehicle tracking system and immobilizer, car diagnostics, insurance claims management services etc. It currently has 32 own outlets and another 40 franchisee outlets in the four southern states.
The 50-year-old ABC Bearings has three manufacturing facilities in Chennai, Bharuch (Gujarat) and Dehradun, said Sahil Patel, Director.
The 101-year-old, Chennai-based TVS Group had a turnover of $ 6 billion with a workforce of 39,000 in the last fiscal.
TVS Automobile Solutions Ltd (TASL), a subsidiary of TVS & Sons, the holding company, has been in the business of multi-brand car servicing and 24x7 emergency roadside assistance for the last nine years.
This may impact the roadside garages, spare part shops and mechanics.
R Srivatchan, President, TVS Automobile Solutions Ltd, said here that these state-of-the-art workshops would provide a “retail experience” to car owners. The after-market industry in this sector isworth Rs 24,000 crore, 50% of which is in the organised sector, he said.
Across India, MyTVS plans to set up nearly 100 such workshops by 2014 whose expected revenues would be around Rs 500 crore per annum, he said.
Srivatchan said that his company has tied up with the promoters of ABC Bearings Ltd, a BSE-listed company in a 70:30 joint venture to set up the first outlet in Vadodara in October. The JV aims to be the
largest multi-brand car service network in Gujarat, providing integrated car service solutions.
Earlier, MyTVS had tied up with the Rajgarhia Group in Kolkata for a similar business. The TVS Group would be expanding this network through such local joint ventures and franchisees, and soon enter the NCR region.
Excluding the cost of land, a workshop would cost Rs two crore each, he said. The JV business would also be entering into annual maintenance contracts (AMCs) with car owners for up to Rs 3,000 per annum.
MyTVS has a brand presence across India through its 24x7 emergency roadside assistance service business. It provides telematics-based vehicle tracking system and immobilizer, car diagnostics, insurance claims management services etc. It currently has 32 own outlets and another 40 franchisee outlets in the four southern states.
The 50-year-old ABC Bearings has three manufacturing facilities in Chennai, Bharuch (Gujarat) and Dehradun, said Sahil Patel, Director.
The 101-year-old, Chennai-based TVS Group had a turnover of $ 6 billion with a workforce of 39,000 in the last fiscal.
TVS Automobile Solutions Ltd (TASL), a subsidiary of TVS & Sons, the holding company, has been in the business of multi-brand car servicing and 24x7 emergency roadside assistance for the last nine years.
Arvind acquires ops of Debenhams, Next, Nautica
Ahmedabad: Arvind Lifestyle Brands, a subsidiary of the Ahmedabad-based denim major Arvind, has acquired the business operations of British fashion retailers Debenhams, Next and American lifestyle brand Nautica in India from Planet Retail.
"The acquisition signals our entry into the department store segment and also the globally fast-growing apparel speciality retail segment. American sportwear lifestyle brand Nautica makes us the dominant player in the sportswear segment. With this, we have taken a big step towards strengthening our position in the Indian fashion industry,” said Sanjay Lalbhai, chairman and managing director, Arvind.
These acquisitions will accelerate our growth and contribute to our vision of achieving sales of Rs 5,000 crore over the next five years," he said.
Added J Suresh, managing director and chief executive officer of Arvind Lifestyle Brands: “We plan to achieve Rs 500 crore revenues over the next five years from the current Rs 70 crore by investing Rs 150 crore in these three brands."
The company termed the acquisition of Debenhams as significant mainly because it gives Arvind an entry into the luxury department store segment. Arvind plans to increase the current number of Debenhams stores in India from two to eight over the next three years. While through acquisition of Indian businesses of Next, Arvind will enter the fast-growing segment of the apparel specialty retail. It plans to increase the number of Next stores from three to 12 in the next three years.
Commenting on the acquisition, a Next spokesperson said: "We are very positive about the new franchise partnership and we are looking forward to Arvind Brands re-launching the Next brand in India."
The licensing arrangement with Nautica is believed to further strengthen Arvind's position in high potential sportswear segment of the market. The company plans to set up additional 30 Nautica stores in India, taking the total number of free-standing Nautica stores to 41 in three years.
The company's stock on Thursday ended at Rs 78.65, up 0.32 per cent from Wednesday's close, while the benchmark Sensex shed 0.28 per cent to close at 18,579.50 points.
"The acquisition signals our entry into the department store segment and also the globally fast-growing apparel speciality retail segment. American sportwear lifestyle brand Nautica makes us the dominant player in the sportswear segment. With this, we have taken a big step towards strengthening our position in the Indian fashion industry,” said Sanjay Lalbhai, chairman and managing director, Arvind.
These acquisitions will accelerate our growth and contribute to our vision of achieving sales of Rs 5,000 crore over the next five years," he said.
Added J Suresh, managing director and chief executive officer of Arvind Lifestyle Brands: “We plan to achieve Rs 500 crore revenues over the next five years from the current Rs 70 crore by investing Rs 150 crore in these three brands."
The company termed the acquisition of Debenhams as significant mainly because it gives Arvind an entry into the luxury department store segment. Arvind plans to increase the current number of Debenhams stores in India from two to eight over the next three years. While through acquisition of Indian businesses of Next, Arvind will enter the fast-growing segment of the apparel specialty retail. It plans to increase the number of Next stores from three to 12 in the next three years.
Commenting on the acquisition, a Next spokesperson said: "We are very positive about the new franchise partnership and we are looking forward to Arvind Brands re-launching the Next brand in India."
The licensing arrangement with Nautica is believed to further strengthen Arvind's position in high potential sportswear segment of the market. The company plans to set up additional 30 Nautica stores in India, taking the total number of free-standing Nautica stores to 41 in three years.
The company's stock on Thursday ended at Rs 78.65, up 0.32 per cent from Wednesday's close, while the benchmark Sensex shed 0.28 per cent to close at 18,579.50 points.
Tata buys out Croma Oz back-end supplier
Mumbai: Tata Sons-owned electronics and durables retailer Infiniti Retail Ltd on Thursday said it would acquire Woolworths Wholesale (India) Pvt Ltd, the Indian subsidiary of Australian retail chain Woolworths, for A$35 million (Rs 193.5 crore).
Woolworths Wholesale has been a back-end supplier to Infiniti’s Croma retail stores since 2006. Woolworths move to exit the partnership with Infiniti follows its decision to get out of the consumer durable business in Australia and New Zealand.
"Both parties entered into this venture with the intention of merging the wholesale and retail businesses once FDI (foreign direct investment) regulations were relaxed. However, with our decision to exit the consumer electronics specialty store sector in Australia and New Zealand, we have now decided to sell the wholesale business in India to Infiniti," Ramnik Narsey, India chairman, Woolworths Wholesale, said.
Tata Sons invested Rs 220 crore in Infiniti on Wednesday, which will enable the company to buy out Woolworths Wholesale and expand the Croma business, said Ajit Joshi, chief executive officer and managing director of Infiniti Retail.
Tata Sons has invested a total of Rs 700 crore in Infiniti so far. Infiniti did a business of Rs 1,972 crore last year and plans to add 20 stores to its tally of 85 stores.
“We used to go as two separate teams to vendors and suppliers for our front-end and back-end needs. Now we can go as a united entity and common team,” Joshi said.
Woolworths’ Hong Kong office used to source Chinese products for Infiniti. “We have that option to use their services depending on the commercial terms worked out between them and us,” he said.
Infiniti is already buying 70 per cent of its private lable needs from Indian manufactures now compared to similar number of products from China earlier, he added.
Upon completion of the transaction, the activities and employees of Woolworths Wholesale will be merged with those of Infiniti.
Woolworths Wholesale has been a back-end supplier to Infiniti’s Croma retail stores since 2006. Woolworths move to exit the partnership with Infiniti follows its decision to get out of the consumer durable business in Australia and New Zealand.
"Both parties entered into this venture with the intention of merging the wholesale and retail businesses once FDI (foreign direct investment) regulations were relaxed. However, with our decision to exit the consumer electronics specialty store sector in Australia and New Zealand, we have now decided to sell the wholesale business in India to Infiniti," Ramnik Narsey, India chairman, Woolworths Wholesale, said.
Tata Sons invested Rs 220 crore in Infiniti on Wednesday, which will enable the company to buy out Woolworths Wholesale and expand the Croma business, said Ajit Joshi, chief executive officer and managing director of Infiniti Retail.
Tata Sons has invested a total of Rs 700 crore in Infiniti so far. Infiniti did a business of Rs 1,972 crore last year and plans to add 20 stores to its tally of 85 stores.
“We used to go as two separate teams to vendors and suppliers for our front-end and back-end needs. Now we can go as a united entity and common team,” Joshi said.
Woolworths’ Hong Kong office used to source Chinese products for Infiniti. “We have that option to use their services depending on the commercial terms worked out between them and us,” he said.
Infiniti is already buying 70 per cent of its private lable needs from Indian manufactures now compared to similar number of products from China earlier, he added.
Upon completion of the transaction, the activities and employees of Woolworths Wholesale will be merged with those of Infiniti.
Dubai-India trade reaches US$ 20.5 billion in first-half of 2012
New Delhi: The total trade value between India and Dubai has reached US$ 20.5 billion in the first half of 2012, accounting for 13 per cent of Dubai's total foreign trade.
The total value of Dubai’s imports from India reached US$ 9.5 billion during the first six months of 2012. The imports comprise diamonds, jewellery, electronic devices and mineral oil, according to Mr Ahmed Butti Ahmed, Executive Chairman, Ports, Customs and Free Zone, and the Director-General of Dubai Customs.
During the same period the value of exports to, India comprising mainly gold, diamonds, jewellery and copper wires, stood at US$ 5.17 billion. Dubai's re-exports to India stood at US$ 5.98 billion.
The Dubai-India trade relationship is witnessing a significant growth, due to the distinctive ties between the Governments and people of the two countries and the joint economic agreements, as per Mr T Tiju Ahmed, Indian Economic Consul to Dubai.
The total value of Dubai’s imports from India reached US$ 9.5 billion during the first six months of 2012. The imports comprise diamonds, jewellery, electronic devices and mineral oil, according to Mr Ahmed Butti Ahmed, Executive Chairman, Ports, Customs and Free Zone, and the Director-General of Dubai Customs.
During the same period the value of exports to, India comprising mainly gold, diamonds, jewellery and copper wires, stood at US$ 5.17 billion. Dubai's re-exports to India stood at US$ 5.98 billion.
The Dubai-India trade relationship is witnessing a significant growth, due to the distinctive ties between the Governments and people of the two countries and the joint economic agreements, as per Mr T Tiju Ahmed, Indian Economic Consul to Dubai.
Thursday, September 27, 2012
Norwest Venture Partners invests Rs 120 cr in Thyrocare
Mumbai:Thyrocare Technologies, a Mumbai-based medical diagnostics services provider, has raised about Rs 120 crore from private equity (PE) firm Norwest Venture Partners (NVP). Through the deal, Thyrocare has diluted about 10 per cent stake in the company, it is learnt. As part of the agreement, Sohil Chand, managing director of NVP India, would join Thyrocare’s board of directors.
The diagnostics market in India is estimated at Rs 10,000 crore. Thyrocare’s network of 20,000 service centres across 1,000 cities and towns in India accounts for about 1,00,000 doctors, through 600 franchisees. For Thyrocare, this is the second PE investment. In 2010, CX Partners had invested Rs 188 crore for a 30 per cent stake in the company.
A Velumani, managing director and chief executive of Thyrocare Technologies, said, “When CX Partners invested, we were motivated and ventured into Nueclear, (the in-vivo segment). Now, with NVP’s investment, we would explore global markets.” NVP manages about $3.7 billion in capital and has funded 500 companies.
India’s diagnostics sector has been in the radar of PE majors for some time. Early this year, Singapore-based GIC had invested $100 million in Vasan Healthcare, while last year, Goldman Sachs invested about Rs 300 crore for a six per cent stake in Max India.
In 2010, US-based TA Associates had invested $35 million in Dr Lal Pathlabs.
Last year, PE fund Avigo Capital Partners had acquired 9.27 per cent stake in Super Religare Laboratories for Rs 100 crore.
The diagnostics market in India is estimated at Rs 10,000 crore. Thyrocare’s network of 20,000 service centres across 1,000 cities and towns in India accounts for about 1,00,000 doctors, through 600 franchisees. For Thyrocare, this is the second PE investment. In 2010, CX Partners had invested Rs 188 crore for a 30 per cent stake in the company.
A Velumani, managing director and chief executive of Thyrocare Technologies, said, “When CX Partners invested, we were motivated and ventured into Nueclear, (the in-vivo segment). Now, with NVP’s investment, we would explore global markets.” NVP manages about $3.7 billion in capital and has funded 500 companies.
India’s diagnostics sector has been in the radar of PE majors for some time. Early this year, Singapore-based GIC had invested $100 million in Vasan Healthcare, while last year, Goldman Sachs invested about Rs 300 crore for a six per cent stake in Max India.
In 2010, US-based TA Associates had invested $35 million in Dr Lal Pathlabs.
Last year, PE fund Avigo Capital Partners had acquired 9.27 per cent stake in Super Religare Laboratories for Rs 100 crore.
L&T Construction gets orders worth Rs 1,241 cr
Coimbatore/Mumbai: L&T Construction has got new orders worth Rs 1,241 crore during the month.
The company's buildings and factories division has got orders totalling Rs 697 crore for building residential towers and factories.
The railways business division has received orders worth Rs 544 crore from Rail Vikas Nigam Ltd.
These include railway electrification work between Guntakal-Raichur-Wadi stations of the South Central Railway and another order for construction, track work, signaling and telecommunication in the Lucknow and Izatnagar divisions of the North Eastern Railway.
The company's buildings and factories division has got orders totalling Rs 697 crore for building residential towers and factories.
The railways business division has received orders worth Rs 544 crore from Rail Vikas Nigam Ltd.
These include railway electrification work between Guntakal-Raichur-Wadi stations of the South Central Railway and another order for construction, track work, signaling and telecommunication in the Lucknow and Izatnagar divisions of the North Eastern Railway.
UP CM Akhilesh Yadav approves setting up two leather parks in Kanpur and Hardoi to attract investment of Rs 2,000 crores
Lucknow: Chief Minister Akhilesh Yadav has given an in principle approval for two mega leather cluster projects in Hardoi and Kanpur districts.
In a meeting with leather industrialists from Kanpur, the Chief Minister assured all possible help from the state government to develop these green field mega clusters which would bring an investment of around Rs 2,000 crores.
The CM also directed officials of UP State Industrial Development Corporation (UPSIDC) to make available land for these projects.
According to Industrial and Infrastructure Development Commissioner, Anil Kumar Gupta one of the proposed leather parks would come up on 300 acres of land in Sandila Industrial Area of Hardoi district. The second would come up in Ramaipur area of Kanpur. About 625 acres of land in Kuraina, Bahadurnagar and Senpurabpara villages has been identified for this project.
Gupta said that the proposed integrated leather parks would have world class infrastructure with latest technology equipped production chain to meet the demands of both the domestic as well as export market.
He said that the parks will generate employment opportunity for 10,000 persons and 50 per cent of the factories would belong to the small and medium enterprises sector.
In a meeting with leather industrialists from Kanpur, the Chief Minister assured all possible help from the state government to develop these green field mega clusters which would bring an investment of around Rs 2,000 crores.
The CM also directed officials of UP State Industrial Development Corporation (UPSIDC) to make available land for these projects.
According to Industrial and Infrastructure Development Commissioner, Anil Kumar Gupta one of the proposed leather parks would come up on 300 acres of land in Sandila Industrial Area of Hardoi district. The second would come up in Ramaipur area of Kanpur. About 625 acres of land in Kuraina, Bahadurnagar and Senpurabpara villages has been identified for this project.
Gupta said that the proposed integrated leather parks would have world class infrastructure with latest technology equipped production chain to meet the demands of both the domestic as well as export market.
He said that the parks will generate employment opportunity for 10,000 persons and 50 per cent of the factories would belong to the small and medium enterprises sector.
Tax residency certificate now mandatory for foreign investors
New Delhi: India has made it mandatory for all foreigners to furnish a tax residency certificate of their home country to claim benefits under the double taxation avoidance agreement. This will make the process of claiming tax credit easier for foreigners by removing the arbitrariness in the earlier regime.
The Central Board of Direct Taxes, the apex direct taxes body, has notified changes to the income tax act prescribing a tax residency certificate. All non residents are entitled to claim benefits under the domestic tax law or the relevant tax treaty to the extent it is more beneficial to them.
Treaty benefits in India is available to a person who is a resident of the treaty country. While there was no requirement prescribed under the law to furnish a Tax Residency Certificate (TRC) from the country of residence to claim treaty benefits, the revenue authorities were asking for such a certificate wherever treaty benefit was claimed.
Tax experts say this will also makes life easier for Indian companies having overseas operations as well and foreign investors in India. A prescribed format will allow foreign residents to know in advance the essentials required to claim tax credits, said said Sudhir Kapadia, national tax leader, Ernst & Young.
"This would be very useful for Indian multinationals as they will be able to get a TRC in a speedy manner as there is a benchmark template prescribed unlike at present depending on the discretion of tax officers," he said.
The TRC for availing tax benefits was proposed in the 2012-13 budget. "It is noticed that in many instances the taxpayers who are not tax resident of a contracting country do claim benefit under the DTAA entered into by the Government with that country. Thereby, even third party residents claim unintended treaty benefits," said the memorandum to the 2012-13 Budget.
The TRC would have the tax identification number of the assessee, its residential status for the purposes of tax, period for which the TRC is applicable and address of the assessee during that period. However, experts are skeptical about TRCs effectiveness.
"While the notification specifies the details that a TRC of another country should have, it would be worthwhile to wait and watch whether the country issuing such a TRC would be willing to specify all such details in the TRC.
Further, in case the assessee is not able to obtain all details as specified in the TRC, would the Indian Revenue authorities deny the exemption which otherwise would be available to them?," said Homi Mistry. Partner, Deloitte Haskins & Sells.
The Central Board of Direct Taxes, the apex direct taxes body, has notified changes to the income tax act prescribing a tax residency certificate. All non residents are entitled to claim benefits under the domestic tax law or the relevant tax treaty to the extent it is more beneficial to them.
Treaty benefits in India is available to a person who is a resident of the treaty country. While there was no requirement prescribed under the law to furnish a Tax Residency Certificate (TRC) from the country of residence to claim treaty benefits, the revenue authorities were asking for such a certificate wherever treaty benefit was claimed.
Tax experts say this will also makes life easier for Indian companies having overseas operations as well and foreign investors in India. A prescribed format will allow foreign residents to know in advance the essentials required to claim tax credits, said said Sudhir Kapadia, national tax leader, Ernst & Young.
"This would be very useful for Indian multinationals as they will be able to get a TRC in a speedy manner as there is a benchmark template prescribed unlike at present depending on the discretion of tax officers," he said.
The TRC for availing tax benefits was proposed in the 2012-13 budget. "It is noticed that in many instances the taxpayers who are not tax resident of a contracting country do claim benefit under the DTAA entered into by the Government with that country. Thereby, even third party residents claim unintended treaty benefits," said the memorandum to the 2012-13 Budget.
The TRC would have the tax identification number of the assessee, its residential status for the purposes of tax, period for which the TRC is applicable and address of the assessee during that period. However, experts are skeptical about TRCs effectiveness.
"While the notification specifies the details that a TRC of another country should have, it would be worthwhile to wait and watch whether the country issuing such a TRC would be willing to specify all such details in the TRC.
Further, in case the assessee is not able to obtain all details as specified in the TRC, would the Indian Revenue authorities deny the exemption which otherwise would be available to them?," said Homi Mistry. Partner, Deloitte Haskins & Sells.
India Malaysia to Achieve Trade Target of USD 15 Billion by 2013
New Delhi: The Union Minister of Commerce, Industry and Textiles, Shri Anand Sharma informed here today that India’s bilateral trade with Malaysia stood at nearly USD 13 billion last year registering a growth of 34% over the previous year. Addressing the members of India-Malaysia CEO Forum, Shri Sharma said, “while we had set a trade target of US$ 15 billion by 2015, I am confident that we will be able to achieve this target definitely by 2013 if not this year. I will be proposing to my counterpart Minister Mustapa Mohamed that we revise this target upwards.”
Recalling his visits to Malaysia in July 2010 and February 2011, Shri Sharma said that he had sought investment from Khazanah Nasional Berhad (Government of Malaysia's strategic investment fund) into Indian infrastructure sector through a collaborative venture with IDFC. Shri Sharma informed that a SPV has been created between Khazanah and a subsidiary of IDFC with an equity base of Rs. 830 crores for financing the national highway construction projects.
The Minister said that during his visits, he identified priority sectors of engagement including Roads & highways, Railways, Airports, IT &ITES, Biotechnology, Tourism, Health Services and JV projects in third countries. Subsequently, the two countries have entered into a Comprehensive Economic Cooperation Agreement which was signed in February 2011. The signing of this Agreement has provided considerable momentum to trade and investment on both sides.
Members and the Minister also expressed happiness on the robust investment front. Malaysian investment in India stands at US$ 7.8 billion while Indian investments in Malaysia are in the range of USD 3 billion. Indian investments in Malaysia are growing steadily. At present, there are more than 100 Indian companies including 61 Indian joint ventures operating in Malaysia. In the past three years alone, about USD 2 billion have been invested by our companies making it the 7th largest investor in Malaysia.
The India Malaysia CEO forum is co-chaired by Shri Malvinder Mohan Singh from India and Mr Tan Sri Krishnan Tan Boon Seng from Malaysia.
Recalling his visits to Malaysia in July 2010 and February 2011, Shri Sharma said that he had sought investment from Khazanah Nasional Berhad (Government of Malaysia's strategic investment fund) into Indian infrastructure sector through a collaborative venture with IDFC. Shri Sharma informed that a SPV has been created between Khazanah and a subsidiary of IDFC with an equity base of Rs. 830 crores for financing the national highway construction projects.
The Minister said that during his visits, he identified priority sectors of engagement including Roads & highways, Railways, Airports, IT &ITES, Biotechnology, Tourism, Health Services and JV projects in third countries. Subsequently, the two countries have entered into a Comprehensive Economic Cooperation Agreement which was signed in February 2011. The signing of this Agreement has provided considerable momentum to trade and investment on both sides.
Members and the Minister also expressed happiness on the robust investment front. Malaysian investment in India stands at US$ 7.8 billion while Indian investments in Malaysia are in the range of USD 3 billion. Indian investments in Malaysia are growing steadily. At present, there are more than 100 Indian companies including 61 Indian joint ventures operating in Malaysia. In the past three years alone, about USD 2 billion have been invested by our companies making it the 7th largest investor in Malaysia.
The India Malaysia CEO forum is co-chaired by Shri Malvinder Mohan Singh from India and Mr Tan Sri Krishnan Tan Boon Seng from Malaysia.
Nissan to launch 10 new vehicles by FY16
Nissan recently announced the revival of the Datsun brand to develop new car platforms for India, Indonesia and Russia
New Delhi: In a bid to ramp up volumes in the country, Japanese auto major Nissan plans to introduce ten new passenger-vehicles by the end of March 2016.
Of the 10 vehicle models it plans to launch by early 2016, at least two would belong to the Datsun brand. Nissan recently announced the revival of the Datsun brand to develop new car platforms for India, Indonesia and Russia.
“The India market has a very big opportunity. The car population in India is less than 20 per 1,000 people, compared with 200 in Malaysia and 150 in Thailand,” said Toru Hasegawa, corporate vice-president (Africa, Middle East and India), Nissan Motor Company.
Nissan India is aiming to double its vehicle sales in the current financial year from last year's 33,000 vehicles. The company aims to have eight per cent share in the domestic market by 2016.
Apart from small cars under the Datsun brand, Nissan is also looking at introducing a sports utility vehicle in the country. Some of the vehicles slated for introduction may be based on platforms developed by partner Renault, Hasegawa said.
Nissan on Tuesday introduced multi-purpose vehicle Evalia priced between Rs 8.49 lakh and Rs 10.99 lakh. The Evalia has a 1.5-liter diesel engine that Nissan says will deliver 19.3 kilometers to a litre. Hasegawa said Nissan is aiming to sell 2,000 to 2,500 Evalia vehicles each month in India.
Nissan currently manufactures small car Micra and sedan Sunny at its Chennai facility. The plant is owned jointly with Renault S.A. Nissan also imports sports utility vehicle X-Trail, premium sedan Teana and sports car 370Z.
New Delhi: In a bid to ramp up volumes in the country, Japanese auto major Nissan plans to introduce ten new passenger-vehicles by the end of March 2016.
Of the 10 vehicle models it plans to launch by early 2016, at least two would belong to the Datsun brand. Nissan recently announced the revival of the Datsun brand to develop new car platforms for India, Indonesia and Russia.
“The India market has a very big opportunity. The car population in India is less than 20 per 1,000 people, compared with 200 in Malaysia and 150 in Thailand,” said Toru Hasegawa, corporate vice-president (Africa, Middle East and India), Nissan Motor Company.
Nissan India is aiming to double its vehicle sales in the current financial year from last year's 33,000 vehicles. The company aims to have eight per cent share in the domestic market by 2016.
Apart from small cars under the Datsun brand, Nissan is also looking at introducing a sports utility vehicle in the country. Some of the vehicles slated for introduction may be based on platforms developed by partner Renault, Hasegawa said.
Nissan on Tuesday introduced multi-purpose vehicle Evalia priced between Rs 8.49 lakh and Rs 10.99 lakh. The Evalia has a 1.5-liter diesel engine that Nissan says will deliver 19.3 kilometers to a litre. Hasegawa said Nissan is aiming to sell 2,000 to 2,500 Evalia vehicles each month in India.
Nissan currently manufactures small car Micra and sedan Sunny at its Chennai facility. The plant is owned jointly with Renault S.A. Nissan also imports sports utility vehicle X-Trail, premium sedan Teana and sports car 370Z.
Ramky Enviro wins Unido project
Hyderabad: Ramky Enviro Engineers Limited has bagged a project from United Nations Industrial Development Organisation (UNIDO), Austria.
REEL will be working with Kinetrics International Inc., Canada on the project to be implemented for Bhilai Steel Plant.
The project seeks to provide "Sound Environmental Management and Final Disposal of Polychlorinated Biphenyls (PCBs)" in accordance with the Stockholm Convention.
The project was bagged against stiff competition from established International companies. It envisages setting up of an ultra modern automated plant using Non-combustion technology for the decontamination of PCB Oil, PCB Contaminated Oils, and wastes and used power transformers. This will be the first of its kind in India.
This is a turnkey project where in Ramky Enviro Engineers will be responsible for technology, supply and installation of the project facilities, testing, commissioning and training of plant personnel.
Project will be implemented in Bhilai Steel Plant located in Chhattisgarh State. The tenure of the project is two years. Detailed Engineering and project implementation will be done in-house by REEL.
UNIDO is funding this project under Global Environmental Facility (GEF). The $ 4.2 million project is expected to create capacity for disposal of Polychlorinated Biphenyls in future.
The Stockholm Convention is a global treaty to protect human health and the environment from persistent organic pollutants (POPs). Over 150 countries signed the Convention.
Ramky Enviro Engineers is part of the Rs. 7000 crore Ramky Group.
REEL will be working with Kinetrics International Inc., Canada on the project to be implemented for Bhilai Steel Plant.
The project seeks to provide "Sound Environmental Management and Final Disposal of Polychlorinated Biphenyls (PCBs)" in accordance with the Stockholm Convention.
The project was bagged against stiff competition from established International companies. It envisages setting up of an ultra modern automated plant using Non-combustion technology for the decontamination of PCB Oil, PCB Contaminated Oils, and wastes and used power transformers. This will be the first of its kind in India.
This is a turnkey project where in Ramky Enviro Engineers will be responsible for technology, supply and installation of the project facilities, testing, commissioning and training of plant personnel.
Project will be implemented in Bhilai Steel Plant located in Chhattisgarh State. The tenure of the project is two years. Detailed Engineering and project implementation will be done in-house by REEL.
UNIDO is funding this project under Global Environmental Facility (GEF). The $ 4.2 million project is expected to create capacity for disposal of Polychlorinated Biphenyls in future.
The Stockholm Convention is a global treaty to protect human health and the environment from persistent organic pollutants (POPs). Over 150 countries signed the Convention.
Ramky Enviro Engineers is part of the Rs. 7000 crore Ramky Group.
Mahindra & Mahindra opens technical centre in Troy, Michigan
Mumbai: In order to tap into highly skilled automotive talent pool of United States, India's largest utility vehicle and tractor maker has started a technical centre in Troy, Michigan to leverage on the regions design and consulting service resources.
M&M intends to use this centre to support the company's automotive and tractor engineering requirement in India. This new facility will initially employ 25 engineers and has been designed to accommodate double that number in the future.
Rajan Wadhera, chief executive — technology, product development and sourcing, Automotive & Farm Equipment Sectors, Mahindra Group said, "This new Technology Center will serve as a base for Mahindra to address the engineering demand for our automotive & farm engineering requirements together with our Global Development Center in India. The Troy Center is the latest addition to our 'neural network' of innovation which also comprises of our other research facilities in India, US, China and Korea."
Rajan Wadhera, chief executive — technology, product development and sourcing, Automotive & Farm Equipment Sectors, Mahindra Group inaugurated the facility along with Micheal Finney, president & CEO, Michigan Economic Development Corporation, Janice Daniels, Mayor, City of Troy and Prashant Kamat, CEO, Mahindra Engineering, India.
"Mahindra is a global provider for automotive engineering services, and we are thrilled with the company's decision to locate its first North American technical center and new jobs in Troy," said MEDC President and CEO Michael A. Finney. "This investment shows our highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading-edge companies."
"Our number one goal is to help new and existing businesses locate, grow and expand within the City of Troy," Troy City Manager Mike Culpepper said. "This is testimony to the fact that Troy is Michigan's top location for Automotive Research and Development facilities due to the presence of local talent, our business friendly policies, and proximity to important markets in the northeastern United States."
According to Kamat, the technical centre in Michigan will enable M&M to leverage local R&D talent to deliver innovative solutions to its customers in the region.
"We also plan to scale up the Center in due course and will establish a dedicated recruiting department in the US office to meet this goal. We currently have a workforce of about 100 in North America with over 60% comprising US nationals hired locally. Hence, wherever we are located, our priority is to contribute to the local community and economy," said Kamat.
Mahindra & Mahindra already has a significant presence in North America with businesses ranging from IT to tractors to aerospace.
M&M had set up its tractor subsidiary in continent called Mahindra USA way back in 1994, and over the past decade its IT companies, Mahindra Satyam, Tech MahindraBSE 0.73 % and Bristlecone have made deeper inroads in the IT sector providing variety of solutions ranging from Enterprise Business Solutions, Testing, Infrastructure Management Services, network security, Value Added Services and Application Development Maintenance and Support (ADMS) Solutions.
M&M intends to use this centre to support the company's automotive and tractor engineering requirement in India. This new facility will initially employ 25 engineers and has been designed to accommodate double that number in the future.
Rajan Wadhera, chief executive — technology, product development and sourcing, Automotive & Farm Equipment Sectors, Mahindra Group said, "This new Technology Center will serve as a base for Mahindra to address the engineering demand for our automotive & farm engineering requirements together with our Global Development Center in India. The Troy Center is the latest addition to our 'neural network' of innovation which also comprises of our other research facilities in India, US, China and Korea."
Rajan Wadhera, chief executive — technology, product development and sourcing, Automotive & Farm Equipment Sectors, Mahindra Group inaugurated the facility along with Micheal Finney, president & CEO, Michigan Economic Development Corporation, Janice Daniels, Mayor, City of Troy and Prashant Kamat, CEO, Mahindra Engineering, India.
"Mahindra is a global provider for automotive engineering services, and we are thrilled with the company's decision to locate its first North American technical center and new jobs in Troy," said MEDC President and CEO Michael A. Finney. "This investment shows our highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading-edge companies."
"Our number one goal is to help new and existing businesses locate, grow and expand within the City of Troy," Troy City Manager Mike Culpepper said. "This is testimony to the fact that Troy is Michigan's top location for Automotive Research and Development facilities due to the presence of local talent, our business friendly policies, and proximity to important markets in the northeastern United States."
According to Kamat, the technical centre in Michigan will enable M&M to leverage local R&D talent to deliver innovative solutions to its customers in the region.
"We also plan to scale up the Center in due course and will establish a dedicated recruiting department in the US office to meet this goal. We currently have a workforce of about 100 in North America with over 60% comprising US nationals hired locally. Hence, wherever we are located, our priority is to contribute to the local community and economy," said Kamat.
Mahindra & Mahindra already has a significant presence in North America with businesses ranging from IT to tractors to aerospace.
M&M had set up its tractor subsidiary in continent called Mahindra USA way back in 1994, and over the past decade its IT companies, Mahindra Satyam, Tech MahindraBSE 0.73 % and Bristlecone have made deeper inroads in the IT sector providing variety of solutions ranging from Enterprise Business Solutions, Testing, Infrastructure Management Services, network security, Value Added Services and Application Development Maintenance and Support (ADMS) Solutions.
Biocon among world's top pharma employers
Bangalore: Bangalore based biotechnology firm Biocon has been named by 'Science' magazine as one of the top 20 employers in global pharma sector. The 2012 Top Biotech and pharma employers survey, has rankled Biocon in the 19 thposition and it is the only Asian firm to be in the top 20.
"We are in the distinguished company of leading global Biotech companies and we will wear this badge of honour with a sense of leadership and responsibility that will enable us to take greater strides to move up the leader board," said MD Kiran Mazumdar-Shaw.
Some of the criteria included loyalty of employees and quality of work done. . "The Biocon employer brand has been growing stronger with each passing year, and our increased success in attracting and retaining top talent in the sector is a testimony to this," said Ravi C Dasgupta, HR Head of the company
US-based Regeneron Pharmaceuticals topped the list .
"We are in the distinguished company of leading global Biotech companies and we will wear this badge of honour with a sense of leadership and responsibility that will enable us to take greater strides to move up the leader board," said MD Kiran Mazumdar-Shaw.
Some of the criteria included loyalty of employees and quality of work done. . "The Biocon employer brand has been growing stronger with each passing year, and our increased success in attracting and retaining top talent in the sector is a testimony to this," said Ravi C Dasgupta, HR Head of the company
US-based Regeneron Pharmaceuticals topped the list .
Seychelles, Mauritius keen on attracting Indian investments
New Delhi: Seychelles can be an important partner for India and China, the country’s Minister for Finance, Trade and Investment Pierre Laporte said here on Tuesday.
“We consider ourselves as potential gateways to Africa because of our position in the Eastern African bloc. We could provide opportunities through our geographical location and through the free trade zones to Indian companies to invest in Seychelles,” the Minister said.
He was speaking at a seminar on ‘Indian Ocean Global Forum – Enhancing partnership for trade, infrastructure and resources development’, organised by the Ministries of External Affairs and Commerce and Confederation of Indian Industry.
Laporte said India and Seychelles had recently signed a bilateral investment promotion agreement.
Marc Hein, Chairman, Financial Services Commission, Mauritius, said while a lot had been said about inbound investment from Mauritius into India, in future India should look at using Mauritius as a platform to invest in Africa.
“There are over 900 funds based in Mauritius. A lot of them are servicing India but more and more of them are geared towards Africa,” he said.
The fact that a number of African countries are growing at 6-8 per cent annually is the reason why people should invest there, he said.
“(These are) unusual figures, which were only heard of from Asian tigers. Now such things are happening in Africa,” Hein added.
“We consider ourselves as potential gateways to Africa because of our position in the Eastern African bloc. We could provide opportunities through our geographical location and through the free trade zones to Indian companies to invest in Seychelles,” the Minister said.
He was speaking at a seminar on ‘Indian Ocean Global Forum – Enhancing partnership for trade, infrastructure and resources development’, organised by the Ministries of External Affairs and Commerce and Confederation of Indian Industry.
Laporte said India and Seychelles had recently signed a bilateral investment promotion agreement.
Marc Hein, Chairman, Financial Services Commission, Mauritius, said while a lot had been said about inbound investment from Mauritius into India, in future India should look at using Mauritius as a platform to invest in Africa.
“There are over 900 funds based in Mauritius. A lot of them are servicing India but more and more of them are geared towards Africa,” he said.
The fact that a number of African countries are growing at 6-8 per cent annually is the reason why people should invest there, he said.
“(These are) unusual figures, which were only heard of from Asian tigers. Now such things are happening in Africa,” Hein added.
Tuesday, September 25, 2012
IVRCL bags orders worth Rs 959 cr
Mumbai: IVRCL said that it has received orders worth Rs 959.04 crore in water, irrigation and power businesses.
The company has bagged an order worth Rs 471.52 crore for the construction of a rehabilitation project from the National Irrigation Board, Kenya.
It has bagged another order for the construction of water tanks, infrastructure and related buildings from Kuwait worth Rs 124.70 crore.
The company’s water division has been awarded orders worth Rs 314.75 crore. One contract is from PHED, Bharatpur, for the construction of a transmission main pipeline for 97 villages, which includes operation and maintenance.
Another order is for a cluster distribution system for 71 villages. The order is from PHED, Jodhpur.
In the power division, IVRCL has got an order worth Rs 48.07 crore for the construction of transmission lines in Bhopal Circle from the Madhya Pradesh Power Transmission Company.
The company has bagged an order worth Rs 471.52 crore for the construction of a rehabilitation project from the National Irrigation Board, Kenya.
It has bagged another order for the construction of water tanks, infrastructure and related buildings from Kuwait worth Rs 124.70 crore.
The company’s water division has been awarded orders worth Rs 314.75 crore. One contract is from PHED, Bharatpur, for the construction of a transmission main pipeline for 97 villages, which includes operation and maintenance.
Another order is for a cluster distribution system for 71 villages. The order is from PHED, Jodhpur.
In the power division, IVRCL has got an order worth Rs 48.07 crore for the construction of transmission lines in Bhopal Circle from the Madhya Pradesh Power Transmission Company.
State-run banks asked to settle bilateral trade deals in local currency
New Delhi: The government has directed state-run banks to encourage local currency payments for bilateral trade transactions, a move that will cut down transaction costs and help mitigate currency risks along with spurring regional trade.
"The move is expected to curb the risk of exchange rate volatility and also ensure closer relations among the banking systems in the two countries," said a finance ministry official, requesting anonymity. Under the proposed mechanism, Indian exporters will be allowed to raise invoices and receive payments in Indian rupees while payments for imports will be made by the partner country's bank in its local currency. The two banks will then settle the transactions among themselves.
For instance, an Indian exporter will raise his invoice in rupees and get paid by his bank in India in rupees after submitting documents. The documents will then be sent to the importer's bank in the partner country which will remit an equivalent amount in the local currency to the Indian bank's branch in the partner country. The Indian bank will then convert it into Indian rupees at a pre-determined exchange rate and remit it to its international services branch in Mumbai for being credited in the vostro account. For importing into India, the same mechanism will be followed in reverse.
"It is an ideal way of reducing banking charges of exporters and importers. While trading in currencies other than the US dollar or the euro, the exporters and importer have to first convert the local currency into the dollar or the euro and then into the Indian rupee. The conversion costs are, therefore, double," points out Ajay Sahai, director-general of Fieo.
To begin with, the mechanism will be put in place in countries where Indian banks have a presence. "We are going to start with a country such as South Africa, where not only Indian banks have a good presence but also our exports and imports are more or less balanced. Gradually, we want to cover all countries," a commerce department official said.
"The move is expected to curb the risk of exchange rate volatility and also ensure closer relations among the banking systems in the two countries," said a finance ministry official, requesting anonymity. Under the proposed mechanism, Indian exporters will be allowed to raise invoices and receive payments in Indian rupees while payments for imports will be made by the partner country's bank in its local currency. The two banks will then settle the transactions among themselves.
For instance, an Indian exporter will raise his invoice in rupees and get paid by his bank in India in rupees after submitting documents. The documents will then be sent to the importer's bank in the partner country which will remit an equivalent amount in the local currency to the Indian bank's branch in the partner country. The Indian bank will then convert it into Indian rupees at a pre-determined exchange rate and remit it to its international services branch in Mumbai for being credited in the vostro account. For importing into India, the same mechanism will be followed in reverse.
"It is an ideal way of reducing banking charges of exporters and importers. While trading in currencies other than the US dollar or the euro, the exporters and importer have to first convert the local currency into the dollar or the euro and then into the Indian rupee. The conversion costs are, therefore, double," points out Ajay Sahai, director-general of Fieo.
To begin with, the mechanism will be put in place in countries where Indian banks have a presence. "We are going to start with a country such as South Africa, where not only Indian banks have a good presence but also our exports and imports are more or less balanced. Gradually, we want to cover all countries," a commerce department official said.
ONGC to invest Rs 11 lakh crore over the next 17 years
Chennai: India’s premier oil exploration and production company, ONGC, intends to invest Rs 11 lakh crore between 2013 and 2030. (In the last 15 years, the company had invested Rs 5 lakh crore.)
Thanks to this, ONGC expects to be producing 130 million tonnes of oil and oil equivalent hydrocarbons in 2030. Half of this will come from assets abroad. (Last year, it produced 27 million tonnes of oil and 25 million cubic metres a day of natural gas.)
A ‘perspective plan’ drawn up by the public sector oil major says the company would invest in petrochemicals, LNG re-gasification and alternative energy, so that 30 per cent of its revenues in 2030 comes from non exploration and production activities. It mentions wind, solar and nuclear as the areas of alternative energy it would get into.
A good part of the investments will go into “unlocking domestic yet-to-find reserves”. What this means is, ONGC will step up exploration. “With more than 28 billion tonnes of prognosticated reserves, Indian sedimentary basis has potential. Extra exploratory miles may give desired results,” says ONGC’s Chairman and Managing Director, Mr Sudhir Vasudeva.
The company expects to add 450 million tonnes of oil and oil equivalent hydrocarbons from yet-to-find reserves.
Thanks to this, ONGC expects to be producing 130 million tonnes of oil and oil equivalent hydrocarbons in 2030. Half of this will come from assets abroad. (Last year, it produced 27 million tonnes of oil and 25 million cubic metres a day of natural gas.)
A ‘perspective plan’ drawn up by the public sector oil major says the company would invest in petrochemicals, LNG re-gasification and alternative energy, so that 30 per cent of its revenues in 2030 comes from non exploration and production activities. It mentions wind, solar and nuclear as the areas of alternative energy it would get into.
A good part of the investments will go into “unlocking domestic yet-to-find reserves”. What this means is, ONGC will step up exploration. “With more than 28 billion tonnes of prognosticated reserves, Indian sedimentary basis has potential. Extra exploratory miles may give desired results,” says ONGC’s Chairman and Managing Director, Mr Sudhir Vasudeva.
The company expects to add 450 million tonnes of oil and oil equivalent hydrocarbons from yet-to-find reserves.
Engineering R&D services mkt to reach $42 bn by 2020
Mumbai: After a lull of almost three years, multinationals are back to spending on engineering research and development (R&D). The impact of this is showing on the Indian captive engineering R&D centres’ growth.
In last one-and-a-half years, about 39 captive centres were set up by MNCs in India. Some of these were MNCs like Hitachi, Panasonic, Ricoh, Faurecia, Peugeot among others, said a study by Zinnov Management Consulting.
According to the study, ‘Engineering R&D: Advantage India’, India is one of the leading offshore destinations in delivering engineering R&D services with a market share of 22 per cent. The market in India is expected to grow at a compound annual growth rate of 14 per cent from $14.7 billion in FY12 to $42 billion by 2020 and is also expected to outpace the information technology growth rate in India.
“The period of 2004-08 saw the maximum growth of captive centres in India. At least 15-20 captive centres were being set-up every year. But since 2008, several companies went slow on capex spends, with many putting it on hold. Over the last one year we are seeing spends back, especially to target growth in the emerging market,” said Sundaraman Viswanathan, manager (consulting), Zinnov.
Pari Natarajan, chief executive officer, Zinnov said the current shift to set up captive centres is because of strong focus on emerging nations as target markets across major verticals. For instance, while Europe and North America are currently the leading markets in Aerospace, this is likely to change significantly by 2030, with countries outside these regions expected to own about half the commercial aircraft service.
Even in the telecom sector for that matter, deregulation in India and China is fuelling the future growth prospects of the industry. Similarly, in the medical devices and consumer electronics segments, markets like India and China are expected to lead the consumption, said the study.
Viswanathan added that the captive centres are also growing in maturity. “Several companies are now setting up centres of excellence for specific verticals. From a services provider landscape, earlier they would depend on certification as a selling point. But now they are moving beyond and looking at partnering with business houses and driving decisions,” he added.
Some of the instances where companies are using their India unit for core research include GE, which has been focusing on areas like material design, electromagnetic analytics, among others. General Motors is focused on smart system modelling, vehicle structure and safety and chemical reaction modelling.
While MNC captives today drive the Indian Product Engineering growth story in almost all verticals except Aerospace where service providers have a 76 per cent share, service providers are upping their game and in fact grew faster in FY2012, at 16 per cent CAGR compared to 11 per cent growth for captives. Rather the product engineering business at the top Indian IT services players like TCS, Wipro and HCL Technologies is already a $1 billion business.
“India is well-poised to contribute to Global ER&D as the ecosystem of captive centres, service providers and startups, increasingly work together to drive innovation. As relationships mature, service providers and customers will enter into pricing models based on market outcomes. Further, with emerging nations growing in importance as key markets, MNCs are set to leverage the inherent competencies in India to build products for local and global markets,” said Viswanathan.
In last one-and-a-half years, about 39 captive centres were set up by MNCs in India. Some of these were MNCs like Hitachi, Panasonic, Ricoh, Faurecia, Peugeot among others, said a study by Zinnov Management Consulting.
According to the study, ‘Engineering R&D: Advantage India’, India is one of the leading offshore destinations in delivering engineering R&D services with a market share of 22 per cent. The market in India is expected to grow at a compound annual growth rate of 14 per cent from $14.7 billion in FY12 to $42 billion by 2020 and is also expected to outpace the information technology growth rate in India.
“The period of 2004-08 saw the maximum growth of captive centres in India. At least 15-20 captive centres were being set-up every year. But since 2008, several companies went slow on capex spends, with many putting it on hold. Over the last one year we are seeing spends back, especially to target growth in the emerging market,” said Sundaraman Viswanathan, manager (consulting), Zinnov.
Pari Natarajan, chief executive officer, Zinnov said the current shift to set up captive centres is because of strong focus on emerging nations as target markets across major verticals. For instance, while Europe and North America are currently the leading markets in Aerospace, this is likely to change significantly by 2030, with countries outside these regions expected to own about half the commercial aircraft service.
Even in the telecom sector for that matter, deregulation in India and China is fuelling the future growth prospects of the industry. Similarly, in the medical devices and consumer electronics segments, markets like India and China are expected to lead the consumption, said the study.
Viswanathan added that the captive centres are also growing in maturity. “Several companies are now setting up centres of excellence for specific verticals. From a services provider landscape, earlier they would depend on certification as a selling point. But now they are moving beyond and looking at partnering with business houses and driving decisions,” he added.
Some of the instances where companies are using their India unit for core research include GE, which has been focusing on areas like material design, electromagnetic analytics, among others. General Motors is focused on smart system modelling, vehicle structure and safety and chemical reaction modelling.
While MNC captives today drive the Indian Product Engineering growth story in almost all verticals except Aerospace where service providers have a 76 per cent share, service providers are upping their game and in fact grew faster in FY2012, at 16 per cent CAGR compared to 11 per cent growth for captives. Rather the product engineering business at the top Indian IT services players like TCS, Wipro and HCL Technologies is already a $1 billion business.
“India is well-poised to contribute to Global ER&D as the ecosystem of captive centres, service providers and startups, increasingly work together to drive innovation. As relationships mature, service providers and customers will enter into pricing models based on market outcomes. Further, with emerging nations growing in importance as key markets, MNCs are set to leverage the inherent competencies in India to build products for local and global markets,” said Viswanathan.
No roaming charges within India from 2013, says Telecom minister Kapil Sibal
New Delhi: Mobile phone users will not have to pay roaming charges when traveling within India from next year, telecom ministerKapil Sibal said Monday, but telcos say abolishing these charges could lead to higher call rates.
The minister also said that the government was did not want to control or govern the internet and added that the Centre would enter into dialogue with all stakeholders to deal with malicious use of cyber space.
"Our (telecom) secretary has told you that it will be free from next year,"" Sibal said when asked to specify timeline for implementation for the 'one-nation-free roaming' that he had announced earlier this year.
ET reported Friday that India would do away with roaming charges in 2013. The Cabinet has already approved the new telecom policy whose guidelines include doing away with roaming charges.
Last week, telecom secretary R Chandrasekhar told ET that this consumer centric move would be implemented next year. ""Our first priority is the upcoming spectrum auctions. At the same time, we are working on the Unified Licence (UL) and we want to finalise this by December.
Once the UL regime is rolled out post December, concepts like 'One nation-free roaming' that is part of it will be introduced. This will happen sometime next year (2013). At this stage it will be impossible to specify the exact time frame,"" Chandrasekhar had said.
Roaming charges account for about 10% of the sector's revenues, and Director General of Cellular Operators Association of India, Rajan S Mathews said that telcos were likely to offset this loss by increasing call rates.
"It is a fact that STD and ISD calls cross subsidize local calls. This comes at a time when the industry has to pay thousands of crore for airwaves, higher diesel costs and as other new costs are imposed on the sector," Mathews said.
The COAI, which represents operators on the GSM platform such as Vodafone and Bharti Airtel, is also of the view that the government must sort out a slew of policy related issues, including migration to the unified licence, before abolishing roaming charges.
"Since it is a tariff related issue, sector regulator Trai must have a consultation process and issue its recommendations first," Mathews added.
On internet governance, Sibal said freedom of speech protected some aspects of online expression, but pointed out that free speech could not be extended to all online activities.
The minister also said that the government was did not want to control or govern the internet and added that the Centre would enter into dialogue with all stakeholders to deal with malicious use of cyber space.
"Our (telecom) secretary has told you that it will be free from next year,"" Sibal said when asked to specify timeline for implementation for the 'one-nation-free roaming' that he had announced earlier this year.
ET reported Friday that India would do away with roaming charges in 2013. The Cabinet has already approved the new telecom policy whose guidelines include doing away with roaming charges.
Last week, telecom secretary R Chandrasekhar told ET that this consumer centric move would be implemented next year. ""Our first priority is the upcoming spectrum auctions. At the same time, we are working on the Unified Licence (UL) and we want to finalise this by December.
Once the UL regime is rolled out post December, concepts like 'One nation-free roaming' that is part of it will be introduced. This will happen sometime next year (2013). At this stage it will be impossible to specify the exact time frame,"" Chandrasekhar had said.
Roaming charges account for about 10% of the sector's revenues, and Director General of Cellular Operators Association of India, Rajan S Mathews said that telcos were likely to offset this loss by increasing call rates.
"It is a fact that STD and ISD calls cross subsidize local calls. This comes at a time when the industry has to pay thousands of crore for airwaves, higher diesel costs and as other new costs are imposed on the sector," Mathews said.
The COAI, which represents operators on the GSM platform such as Vodafone and Bharti Airtel, is also of the view that the government must sort out a slew of policy related issues, including migration to the unified licence, before abolishing roaming charges.
"Since it is a tariff related issue, sector regulator Trai must have a consultation process and issue its recommendations first," Mathews added.
On internet governance, Sibal said freedom of speech protected some aspects of online expression, but pointed out that free speech could not be extended to all online activities.
Funding platform for start-ups to be launched in three cities
Bangalore: The Indian start-up scene is set to take a big step forward with the launch of the Global Superangels Forum’s (GSF) Accelerator programme across three cities — Delhi, Mumbai and Bangalore. The programme is seen as the single-largest funding platform for Indian start-ups.
GSF Accelerator is the initiative of Rajesh Sawhney, founder of GSF, a network of 30 leading digital founders and investors. Earlier, as president of Reliance Entertainment, Sawhney had led Reliance Group’s foray into media & entertainment — the film eco-system, broadcasting and new media. He had founded leading web portal Indiatimes.com and pioneered mobile value-added services in India.
Sawhney said the programme would create a global springboard for the next generation of Indian start-ups, especially product-oriented technology ones in mobile, social, local and cloud areas. “There is no reason why Indian entrepreneurs cannot create the next Instagram, or the next Twitter, or the next Inmobi,” he said.
Key advisors to GSF include Naveen Tewari, chief executive and founder of Inmobi (a global mobile platform), Avnish Bajaj, founder of venture capital fund Matrix Partners, Saul Klein, partner at Index Ventures and co-founder of TAG and Seedcamp, and Dave McClure, founder of 500 Startups, an early stage investor in the Silicon Valley.
The programme would be held simultaneously in Delhi, Mumbai and Bangalore through October-November, with each city hosting four start-ups. Extensive coaching would be provided to the 12 GSF start-ups through seven weeks by a mentor pool of about 200 leading global co-founders and digital masterminds.
Sawhney says, “Twelve start-ups would receive initial funding from GSF this year. This is the single largest funding platform for Indian start-ups. GSF Superangels would provide additional funding to a few start-ups at the end of the programme. The 12 start-ups would also be showcased at the GSF 2012 (the second Global Superangels Forum) on Nov 26/27, in which 400 leading early stage investors from across the world would interact with officials from these start-ups.”
Thirty leading founders are funding GSF Superangels and the GSF Accelerator. Leading Indian funds such as Kae Capital and Blume Venture have also partnered the GSF programme. Sawhney says, “GSF has tied up with 500 renowned start-ups by Dave McClure to provide access to its Silicon Valley networks. Similarly, European mentorship platform Seedcamp would provide access to GSF start-ups in Europe. GSF’s relationship with Singapore-based fund Ruvento would create cross-border fertilisation of businesses and capital between India, Singapore and Russia.”
Dave McClure says, “India is booming with innovation, and 500 Startups is excited to partner GSF Accelerator in one of the world’s most exciting entrepreneurial ecosystems. 500 Startups has already made several investments in India, and we plan more investments in the future.”
Seedcamp partner Reshma Sohoni says, “We started five years ago, with the objective of accelerating founders across Europe. We broadened this to include EMEA (Europe, Middle East and Asia) and beyond, and are now happy to put a strong stake in the ground in India with GSF.”
GSF Accelerator is the initiative of Rajesh Sawhney, founder of GSF, a network of 30 leading digital founders and investors. Earlier, as president of Reliance Entertainment, Sawhney had led Reliance Group’s foray into media & entertainment — the film eco-system, broadcasting and new media. He had founded leading web portal Indiatimes.com and pioneered mobile value-added services in India.
Sawhney said the programme would create a global springboard for the next generation of Indian start-ups, especially product-oriented technology ones in mobile, social, local and cloud areas. “There is no reason why Indian entrepreneurs cannot create the next Instagram, or the next Twitter, or the next Inmobi,” he said.
Key advisors to GSF include Naveen Tewari, chief executive and founder of Inmobi (a global mobile platform), Avnish Bajaj, founder of venture capital fund Matrix Partners, Saul Klein, partner at Index Ventures and co-founder of TAG and Seedcamp, and Dave McClure, founder of 500 Startups, an early stage investor in the Silicon Valley.
The programme would be held simultaneously in Delhi, Mumbai and Bangalore through October-November, with each city hosting four start-ups. Extensive coaching would be provided to the 12 GSF start-ups through seven weeks by a mentor pool of about 200 leading global co-founders and digital masterminds.
Sawhney says, “Twelve start-ups would receive initial funding from GSF this year. This is the single largest funding platform for Indian start-ups. GSF Superangels would provide additional funding to a few start-ups at the end of the programme. The 12 start-ups would also be showcased at the GSF 2012 (the second Global Superangels Forum) on Nov 26/27, in which 400 leading early stage investors from across the world would interact with officials from these start-ups.”
Thirty leading founders are funding GSF Superangels and the GSF Accelerator. Leading Indian funds such as Kae Capital and Blume Venture have also partnered the GSF programme. Sawhney says, “GSF has tied up with 500 renowned start-ups by Dave McClure to provide access to its Silicon Valley networks. Similarly, European mentorship platform Seedcamp would provide access to GSF start-ups in Europe. GSF’s relationship with Singapore-based fund Ruvento would create cross-border fertilisation of businesses and capital between India, Singapore and Russia.”
Dave McClure says, “India is booming with innovation, and 500 Startups is excited to partner GSF Accelerator in one of the world’s most exciting entrepreneurial ecosystems. 500 Startups has already made several investments in India, and we plan more investments in the future.”
Seedcamp partner Reshma Sohoni says, “We started five years ago, with the objective of accelerating founders across Europe. We broadened this to include EMEA (Europe, Middle East and Asia) and beyond, and are now happy to put a strong stake in the ground in India with GSF.”
BPCL plans Rs 45,000-cr investment for capacity expansion
Mumbai: Public sector Bharat Petroleum Corporation Ltd plans to invest about Rs 45,000 crore in the next four to five years to expand its refinery capacity and upstream operations.
Addressing the media after the company’s 59{+t}{+h} Annual General Meeting held in Mumbai on Friday, Chairman and Managing Director R.K. Singh said: “In the next four to five years, our company is going to change completely with BPCL emerging as a major player in the exploration and production field.”
The company is riding high on its discovery in Mozambique and plans to monetise the gas finds by proposing to set up two LNG plant of 5 mtpa capacity each.
Also on the anvil is its Integrated Refinery Expansion Project that envisages increasing the Kochi refinery capacity from 9.5 mtpa to 15.5 mtpa and diversification into the petrochemical sector to manufacture niche products.
The entire outlay for this project has been pegged at Rs 20,000 crore.
Singh said: “We are also committed to spend Rs 10,000 crore towards the marketing of Mozambique gas in the next four to five years.
By 2017-18 we are hopeful of get getting gas, of which a part would be brought to India.”
The company chairman also expressed his confidence at being able to mobilise the resources for its ambitious plans.
“We do not believe we would have any problem in mobilising resources to meet our capex requirement as we are tying up with banks for our loan arrangements in the upstream sector through reserve base lending,” added Singh.
The company may also go in for a foreign borrowing to finance its petro chemical project in Kerala. With the Government reducing the withholding tax from 20 per cent to five per cent, “We need to study the fine print to know what would be the benefit”, said S. Varadarajan, Director Finance.
BPCL has tied up with LG Chemicals of South Korea for the petro chemical project.
The company’s board has approved a new R&D project to produce diesel from bio-mass jointly with Shell and another Hyderabad based company, Chairman said.
Addressing the media after the company’s 59{+t}{+h} Annual General Meeting held in Mumbai on Friday, Chairman and Managing Director R.K. Singh said: “In the next four to five years, our company is going to change completely with BPCL emerging as a major player in the exploration and production field.”
The company is riding high on its discovery in Mozambique and plans to monetise the gas finds by proposing to set up two LNG plant of 5 mtpa capacity each.
Also on the anvil is its Integrated Refinery Expansion Project that envisages increasing the Kochi refinery capacity from 9.5 mtpa to 15.5 mtpa and diversification into the petrochemical sector to manufacture niche products.
The entire outlay for this project has been pegged at Rs 20,000 crore.
Singh said: “We are also committed to spend Rs 10,000 crore towards the marketing of Mozambique gas in the next four to five years.
By 2017-18 we are hopeful of get getting gas, of which a part would be brought to India.”
The company chairman also expressed his confidence at being able to mobilise the resources for its ambitious plans.
“We do not believe we would have any problem in mobilising resources to meet our capex requirement as we are tying up with banks for our loan arrangements in the upstream sector through reserve base lending,” added Singh.
The company may also go in for a foreign borrowing to finance its petro chemical project in Kerala. With the Government reducing the withholding tax from 20 per cent to five per cent, “We need to study the fine print to know what would be the benefit”, said S. Varadarajan, Director Finance.
BPCL has tied up with LG Chemicals of South Korea for the petro chemical project.
The company’s board has approved a new R&D project to produce diesel from bio-mass jointly with Shell and another Hyderabad based company, Chairman said.
Wipro recognised as leader in Computer Services and Internet in Dow Jones Sustainability Index-2012
Bengaluru: Software services exporter Wipro has been recognized as leader in the 'Computer Services and Internet' sector in the Dow Jones Sustainability Index (DJSI) - 2012, for the third time in a row.
Wipro is one among the four companies worldwide and the only one from India in the Computer services and Internet sector of the DJSI World 2012.
"Sustainability is integral to all that Wipro does as an organization," said Anurag Behar, Wipro's chief sustainability officer. "We view frameworks like the DJSI as valuable platforms for benchmarking and holding ourselves up to scrutiny."
Some of Wipro's sustainability initiatives are in areas such as improving energy efficiency, reducing carbon footprint, as well extensive work in the education sector.
DJSI evaluated some 1544 companies out of which 340 made it to the final ranking. In the sector where Wipro emerged as the leader, four companies were selected from 32 nominations. Companies were assessed on various indicators including climate strategy, eco-efficiency, environmental reporting, labor and human rights, human capital development, talent attraction & retention, digital inclusion and corporate governance.
Wipro is one among the four companies worldwide and the only one from India in the Computer services and Internet sector of the DJSI World 2012.
"Sustainability is integral to all that Wipro does as an organization," said Anurag Behar, Wipro's chief sustainability officer. "We view frameworks like the DJSI as valuable platforms for benchmarking and holding ourselves up to scrutiny."
Some of Wipro's sustainability initiatives are in areas such as improving energy efficiency, reducing carbon footprint, as well extensive work in the education sector.
DJSI evaluated some 1544 companies out of which 340 made it to the final ranking. In the sector where Wipro emerged as the leader, four companies were selected from 32 nominations. Companies were assessed on various indicators including climate strategy, eco-efficiency, environmental reporting, labor and human rights, human capital development, talent attraction & retention, digital inclusion and corporate governance.
Government cuts tax to make foreign debt attractive
New Delhi: In a move to lower the cost of borrowings for Indian companies and spur investment, the government on Friday cut the tax it levies on the interest paid on foreign loans to 5% from 20% earlier. Although the move had been announced in the Budget, it came at a time when the government is unleashing a series of measures to get the economy back on track.
So far, if a company was borrowing overseas at 5%, the cost went up to 6% due to the 20% levy. But with the reduced rate of tax, the cost of the same loan would be 5.25%, excluding other costs such as those to hedge interest rate and currency risks.
"This lower rate of taxation will apply to interest paid to a non-resident by an Indian company for money borrowed in foreign currency from a source outside India, either under a loan agreement or by way of long-term infrastructure bonds," the finance ministry said in a statement. As a result, the rate of withholding tax, or the income to withhold or deduct tax from the payment made by a company and transfer the amount to the government, has also been lowered to 5%.
Simultaneously, finance minister P Chidambaram announced that companies that meet specified criteria will now get automatic approval instead of a case-by-case approach. There was almost an immediate cheer from the industry. "The reduction in withholding tax from 20% to 5% will enable corporates to access funds at a cheaper cost. Also, the automatic approval provision makes the process less time-consuming," said Sunil Agarwal, head of Deutsche Bank's institutional client group.
"Reduction in the applicable tax rate and withholding tax will reinforce the overall positivity from the reform measures announced recently. In a global scenario of competing capital destinations, this maintains attractiveness of Indian risk, while giving some advantage to the borrowers. Hopefully, this will provide some more push to investment activity in the country," added Saket Misra, MD (strategic equity solutions) at RBS.
The announcement comes at a time when the government is trying to create conditions - by improving the fiscal situation - to prod RBI into cutting policy rates in its October monetary policy review.
So far, if a company was borrowing overseas at 5%, the cost went up to 6% due to the 20% levy. But with the reduced rate of tax, the cost of the same loan would be 5.25%, excluding other costs such as those to hedge interest rate and currency risks.
"This lower rate of taxation will apply to interest paid to a non-resident by an Indian company for money borrowed in foreign currency from a source outside India, either under a loan agreement or by way of long-term infrastructure bonds," the finance ministry said in a statement. As a result, the rate of withholding tax, or the income to withhold or deduct tax from the payment made by a company and transfer the amount to the government, has also been lowered to 5%.
Simultaneously, finance minister P Chidambaram announced that companies that meet specified criteria will now get automatic approval instead of a case-by-case approach. There was almost an immediate cheer from the industry. "The reduction in withholding tax from 20% to 5% will enable corporates to access funds at a cheaper cost. Also, the automatic approval provision makes the process less time-consuming," said Sunil Agarwal, head of Deutsche Bank's institutional client group.
"Reduction in the applicable tax rate and withholding tax will reinforce the overall positivity from the reform measures announced recently. In a global scenario of competing capital destinations, this maintains attractiveness of Indian risk, while giving some advantage to the borrowers. Hopefully, this will provide some more push to investment activity in the country," added Saket Misra, MD (strategic equity solutions) at RBS.
The announcement comes at a time when the government is trying to create conditions - by improving the fiscal situation - to prod RBI into cutting policy rates in its October monetary policy review.
India South Africa to meet USD 15 Billion Trade Target this Year Ahead of 2014 Timeline
Commerce, Industry and Textiles Minister Anand Sharma visited South Africa on 21-22 September 2012 for bilateral meetings with his counterpart. During his visit, he also called on President Jacob Zuma and discussed global and regional developments and areas of bilateral cooperation. President Zuma conveyed his deep respect for Prime Minister Manmohan Singh as well as Congress President Smt. Sonia Gandhi and mentioned that there was a meeting of mind between the two countries and they had common approach on issues of global importance. He mentioned that South Africa will be hosting the next BRICS Summit next year. Minister Sharma informed him that India was preparing to host the IBSA Summit in June next year. Minister Sharma emphasized the need for early conclusion of the India-SACU Preferential Trade Agreement as it would complete IBSA-SACU-Mercosur trilateral.
Earlier in the day, Minister Sharma met Rob Davies, South African Trade Minister. Both Ministers expressed satisfaction at the fact that the bilateral trade had crossed US$14 billion last year and that we would be able to meet the target of US$ 15 billion this year itself, well ahead of the 2014 timeline. They also took stock of the ongoing India-SACU negotiations on Preferential Trade Agreement. Both Ministers noted the growing private investments on both sides. Indian companies had already invested over US$ 8 billion in South Africa.
Earlier in the day, Minister Sharma met Rob Davies, South African Trade Minister. Both Ministers expressed satisfaction at the fact that the bilateral trade had crossed US$14 billion last year and that we would be able to meet the target of US$ 15 billion this year itself, well ahead of the 2014 timeline. They also took stock of the ongoing India-SACU negotiations on Preferential Trade Agreement. Both Ministers noted the growing private investments on both sides. Indian companies had already invested over US$ 8 billion in South Africa.
Saturday, September 22, 2012
Mahindra Insurance Brokers ties up with LeapFrog
Bharat Doshi, executive director & group chief financial officer of Mahindra & Mahindra and chairman of Mahindra Finance, said despite substantial growth in rural areas, markets in rural India were still under-served. “Considering our large network and LeapFrog Investments’ experience in regions like Africa and Asia, we believe we would be able to have a different approach to serve that market,” he said.
“The goal of the new partnership would be to introduce new suites of products for people who don’t have any access to insurance services. The first product in the offing would be health insurance. A pilot study has already been initiated by the two parties for health insurance,” said Andrew Kuper, president and founder of LeapFrog.
Through this initiative, MIBL aims to be India’s leading insurance broker by 2015. Doshi said the partnership was a step towards MIBL’s expansion in the insurance sector. Ramesh G Iyer, managing director, Mahindra Fina-nce, said as a non-banking financial company, MIBL already knew the cash flow of its customers. Now, it would focus on increasing its presence using customer insights.
“Now, our focus, through MIBL, would be on offering additional rural and livelihood products at affordable prices. The key is to make people understand insurance is a security product, not an investment product,” Iyer said.
This is LeapFrog’s second investment in the Indian market in a year. In September 2011, it had invested Rs 67 crore in Shriram Credit. As an impact investment fund, LeapFrog targets both robust financial returns and significant social impact. Currently, about eight million people across six countries in Africa and Asia have access to LeapFrog products.
Italy's Maschio Gaspardo Group enters India
The company has invested Rs 200 crore in this facility and will invest additional Rs 100 crore in the next five years.
At the beginning the Pune plant will manufacture at the beginning rotary tillers, mulchers and seeders for the domestic market.
The annual capacity of this plant is 20,000 units. Initially, it will manufacture over 500 machines per month. Maschio Gaspardo group specializes in the production of agricultural machinery for tillage, sowing, seeding, landscaping, forage-making, sprayers and crop care. It has also set up an R & D centre in India. Over 60 per cent localization has been achieved in this plant and remaining will be imported from Italy and China. The Pune plant will currently employ 120 people and will be increased to 250.
To start with, the new plant will manufacture products for Mahindra & Mahindra and New Holland India. Plans are also underway to serve the needs of Maschio Gaspardo Group's other global customers, by providing local supply to their India and Asia Pacific facilities. It has already sold over 17 thousand units to Mahindra and Mahindra since 2010. Gaspardo had a partnership with M & M for its OEMs.
Commenting on this, Alessio Riulini, director, Maschio Gaspardo India, said, “The growing importance of Indian agricultural market gives this country a central position in Maschio Gaspardo Group’s global strategy. Pune is an ideal location for our new plant because the city provides a strong infrastructure and a rich talent pool of skilled workforce in the manufacturing sector. Our new plant represents a key milestone in Maschio Gaspardo Group’s long-term vision of investing in fast growing markets and aligning our manufacturing footprint with the needs of our global customer base.”
He added, “Indian market requirements are very limited as compare to USA or Europe as field sizes, conditions of soil, power of tractors are lesser than other markets. The new plant will aid Maschio Gaspardo Group to achieve its aim for 2012; to exceed 280 million USD turn over.”
Dr Reddy’s launches Amoxicillin tablets, capsules in US market
The product is a bio-equivalent generic version of Amoxil (Amoxicillin) tablets, capsules, and oral suspension.
Officially launched on September 17 in the US, Amoxicillin tablets (500 mg and 875 mg), capsules (250 mg and 500 mg), and oral suspension (125 mg/5 ml, 200 mg/5 ml, 250 mg/5 ml, and 400 mg/5 ml) are approved by the United States Food and Drug Administration (US FDA).
In a press release, the Hyderabad-based pharma major said the Amoxil brand and generic tablets (875 mg) has US sales of approximately $22.2 million, capsules ($67.2 m), and oral suspension ($89.5 m), for the 12 months ended June 30, 2012 quoting IMS Health.
Dr. Reddy’s Amoxicillin tablets will be available in bottle counts of 20 and 100; Amoxicillin capsules in bottle counts of 100 and 500 and oral suspension in 200 mg/5 ml and 400 mg/5 ml, in three counts of 50 ml, 75 ml, and 100 ml.
Amoxicillin oral suspension in 125 mg/5 ml and 250 mg/5 ml will be available in bottle sizes of 80 ml, 100 ml, and 150 ml.
9 road projects of Rs 11,600 cr get nod
New Delhi: Government on Thursday approved nine road projects, which are estimated to cost around Rs 11,600 crore and to be executed by state governments on public private partnership (PPP) mode. These projects, which add up to 1,226 km, are at an advance stage of bidding in Andhra Pradesh, Uttar Pradesh and Bihar.
The finance ministry provides 20% of the total project cost, and another 20% assistance comes from the highways ministry to make these ventures financially viable in the form of viability gap funding (VGF), which was devised by the Centre in 2005. The finance ministry has approved Rs 2,295 crore under VGF and Rs 500 crore will be disbursed this fiscal.
The approval was granted by the Empowered Committee headed by economic affairs secretary Arvind Mayaram. Sources said raising concern on poor bidding of highway projects, Planning Commission's deputy chairman Montek Singh Ahluwalia has recently written to the highways ministry to hold talks with the contractors. Government has set an ambitious task of awarding 9,500 km highway during this fiscal. Construction is on track, but awarding has left a lot to be desired.
The finance ministry provides 20% of the total project cost, and another 20% assistance comes from the highways ministry to make these ventures financially viable in the form of viability gap funding (VGF), which was devised by the Centre in 2005. The finance ministry has approved Rs 2,295 crore under VGF and Rs 500 crore will be disbursed this fiscal.
The approval was granted by the Empowered Committee headed by economic affairs secretary Arvind Mayaram. Sources said raising concern on poor bidding of highway projects, Planning Commission's deputy chairman Montek Singh Ahluwalia has recently written to the highways ministry to hold talks with the contractors. Government has set an ambitious task of awarding 9,500 km highway during this fiscal. Construction is on track, but awarding has left a lot to be desired.
India and United Kingdom ink MoU on Urban Regeneration and Development
Shri Kamal Nath, Union Minister of Urban Development and Dr. Vince Cable, the British Secretary of State for Business, Innovation and Skills signed an MoU on Urban Regeneration and Development in London today.
Speaking on the occasion, Shri Kamal Nath expressed appreciation of the urban regeneration works carried out in London and felt that India could benefit from the British experience. The Minister also highlighted the immense challenges and opportunities in the urban sector in India. He informed that India would soon launch the next phase of the Jawaharlal Nehru Urban Renewal Mission and that the Government of India is keen to encourage PPP in urban sector especially in larger cities. He invited the international firms including British firms to participate in the process.
Shri Kamal Nath stated that both India and Britain would benefit from the MoU, as it would provide an enabling platform for the officials, professionals and business leaders to meet and share knowledge and best practices in the urban sector. He expressed the hope that this joint declaration would lead to enhanced cooperation and deepen the engagement between the two countries.
The MoU envisages promotion of cooperation in the areas of sustainable master planning; transport planning; land economics; heritage management; regeneration governance; Regeneration capacity building and public private partnership financing arrangements.
Shri Kamal Nath also participated in a business roundtable organized by the UK India Business Council. The roundtable was attended by leading infrastructure companies such as Aecom, Arup, Balfour Beatty Plc, HOK, JCB, Mott MacDonald etc. Shri Kamal Nath also met Mr. George Osborne, Chancellor of the Exchequer UK.
Speaking on the occasion, Shri Kamal Nath expressed appreciation of the urban regeneration works carried out in London and felt that India could benefit from the British experience. The Minister also highlighted the immense challenges and opportunities in the urban sector in India. He informed that India would soon launch the next phase of the Jawaharlal Nehru Urban Renewal Mission and that the Government of India is keen to encourage PPP in urban sector especially in larger cities. He invited the international firms including British firms to participate in the process.
Shri Kamal Nath stated that both India and Britain would benefit from the MoU, as it would provide an enabling platform for the officials, professionals and business leaders to meet and share knowledge and best practices in the urban sector. He expressed the hope that this joint declaration would lead to enhanced cooperation and deepen the engagement between the two countries.
The MoU envisages promotion of cooperation in the areas of sustainable master planning; transport planning; land economics; heritage management; regeneration governance; Regeneration capacity building and public private partnership financing arrangements.
Shri Kamal Nath also participated in a business roundtable organized by the UK India Business Council. The roundtable was attended by leading infrastructure companies such as Aecom, Arup, Balfour Beatty Plc, HOK, JCB, Mott MacDonald etc. Shri Kamal Nath also met Mr. George Osborne, Chancellor of the Exchequer UK.
Gamesa to supply wind generators to Indo Rama Renewables
This marks the entry of Indo Rama into the renewable energy market.
The order from Indo Rama Renewables involves supply of 15 wind mills, G97-2.0 MW units, which Gamesa will erect and commission in Jath, Maharashtra, by December end this year, according to a press release from Gamesa.
“The Indo Rama Renewable contract strengthens the Gamesa 2.0 MW portfolio in Maharashtra,” said Ramesh Kymal, Chairman and Managing Director of Gamesa in India.
“The company is fast emerging a market leader with the Gamesa 2.0 MW platform among the growing IPP segment.”
The release quoting Vishal Lohia, Executive Director, Indo Rama Synthetics, said, “Indo Rama has made its entry into the Indian renewable energy arena with the 30 MW order for Gamesa 2.0 MW turbines in Maharashtra. This is the first of several investment plans that have been chalked out, we have aggressive plans to be a leading renewable Independent Power Producer (IPP) and an active participant in the Indian renewable energy platform.”
Renew Power
To Gamesa, this contract comes weeks after the announcement of the single largest 75 MW order with another IPP, ReNew Power, in Maharashtra.
India contributed 14 per cent of Gamesa’s total sales in the first half of 2012.
International calls set to become cheaper on new TRAI rule
New Delhi: International long distance call charges are set to come down with the telecom regulator introducing a new measure that will intensify competition in this segment. TRAI has allowed telephone users of one operator to use calling cards issued by another operator.
For example, a Vodafone user will now be able to make calls to the US or UK using Reliance’s global calling card. Until now, a Vodafone subscriber was forced to make ISD calls using only Airtel’s network.
The new system also opens up the game for foreign giants such as BT, AT&T and Orange which can now sell their voice calling cards to retail and enterprise users in India. These multinational firms, at present are offering only data services to large corporates.
TRAI has directed all operators to open up their access networks to enable customers to make the choice and use calling cards of other players.
According to industry watchers, this could trigger a price war in a segment, where tariffs have remained flat over the past few years. In addition, consumers could also get dynamic pricing on various international routes. An operator with more traffic to the Gulf region could offer cheaper calls than another player which has heavy traffic on the US route. Although there are 27 companies in the country with a licence to offer international long distance services, most of them are not offering voice calling facility to retail users. That’s because the telecom company which owns the subscriber does not allow another operator to give access to their services. As a result, ISD tariffs in the country have not declined for many years. A call to the US, for instance, is priced at around Rs 7, which has been at the same level since 2008.
The TRAI is examining a number of other aspects in the long distance telephony segment, including ways to bring competition in the cable landing station segment. There are 12 undersea cables landing on Indian shores but most of the landing stations are controlled by just two players — Bharti Airtel and Tata Communications. According to other ILD players, this has kept the landing charges artificially high which in turn is adding to the bandwidth cost.
For example, a Vodafone user will now be able to make calls to the US or UK using Reliance’s global calling card. Until now, a Vodafone subscriber was forced to make ISD calls using only Airtel’s network.
The new system also opens up the game for foreign giants such as BT, AT&T and Orange which can now sell their voice calling cards to retail and enterprise users in India. These multinational firms, at present are offering only data services to large corporates.
TRAI has directed all operators to open up their access networks to enable customers to make the choice and use calling cards of other players.
According to industry watchers, this could trigger a price war in a segment, where tariffs have remained flat over the past few years. In addition, consumers could also get dynamic pricing on various international routes. An operator with more traffic to the Gulf region could offer cheaper calls than another player which has heavy traffic on the US route. Although there are 27 companies in the country with a licence to offer international long distance services, most of them are not offering voice calling facility to retail users. That’s because the telecom company which owns the subscriber does not allow another operator to give access to their services. As a result, ISD tariffs in the country have not declined for many years. A call to the US, for instance, is priced at around Rs 7, which has been at the same level since 2008.
The TRAI is examining a number of other aspects in the long distance telephony segment, including ways to bring competition in the cable landing station segment. There are 12 undersea cables landing on Indian shores but most of the landing stations are controlled by just two players — Bharti Airtel and Tata Communications. According to other ILD players, this has kept the landing charges artificially high which in turn is adding to the bandwidth cost.
Future Group buys convenience store chain Big Apple for Rs 62 crore
Apple stores into its KB's Fair Price stores - the group's neighbourhood store format - to consolidate its operations in the NCR, one of its largest market in the country. The country's largest retailer closed the deal through Future Ventures India LtdBSE -0.88 %, the investment arm of the group which builds and operates innovative and emerging businesses.
"The acquisition will help Future Group to significantly grow presence in the convenience store format in NCR where it already operates 100 KB's Fair Price neighborhood stores and have a ready operational and administrative infrastructure," a person close to the deal said, requesting anonymity.
Big Apple is owned by Express Retail Services Ltd, which sells groceries and food products for over six years. The Big Apple stores generate annual revenue of around Rs 120 crore and is a debt-free company.
Incidentally, Future group has recently transferred its 180-plus KB's Fair Price stores from Pantaloon Retail India to Future Consumer Enterprises, which is a wholly-owned subsidiary of Future Ventures. While Express Retail Services will become a wholly-owned subsidiary of Future Ventures, there are possibilities that it might be later merged into Future Consumer Enterprises to consolidate the convenience store operations under a single holding company.
Big Apple has direct tie-up with farmers in Haryana, Rajasthan, HP and Uttar Pradesh, which provides consumers with uninterrupted and qualitative product supply, according to the company website.
HCL Tech signs five-year deal with Freescale
HCL will be managing desktop support, computer, storage, database, telecom (network and security) and process automation. It will deliver services to Freescale across 20 countries, handling a user base of 19,000 employees spread across 80 locations.
Freescale will also leverage HCL’s global delivery centres in Poland and Shanghai for multilingual helpdesk support. It will develop more resilient systems, optimise its operational costs, increase visibility into IT operations, experience reduced technology complexity and drive innovation to existing and new initiatives.
“HCL will be sharing our vision of building a robust and agile IT environment required to keep pace with the growing technological innovation demands of the business and creating new ideas and technologies for the next generation opportunities,” Hal Yarbrough, Director of IT Infrastructure at Freescale Semiconductor, said.
HCL Technologies infrastructure services division (ISD) manages mission critical environments and handles over three million devices for over 1.7 million end users.
The ISD business contributes 26 per cent to the overall revenue of $4.2 billion as of June 30.
India-Pakistan commerce secretaries likely to discuss new trade routes, air links, petro trade
Opening of new trade routes for boosting bilateral trade via land with Pakistan, including the Khokrapar-Munabao link, would feature in the commerce secretary-level talks with India over the next two days.
Commerce Secretary S R Rao, who is leading a 10-member delegation on a two-day visit to the neighbouring country, would review the progress in bilateral trade with his counterpart Munir Qureshi.
Issues such as increasing air connectivity and starting trade in petroleum products are expected to figure in the talks beginning tomorrow in Islamabad. The last commerce secretary-level talks were held in November 2011 here.
During the meeting, which aims at further boosting trade relations, matters that might get prominence include trade in electricity and opening of bank branches in each other’s country, said an official at the ministry of commerce and industry. Both sides might also sign the Customs cooperation and redressal of trade-related grievances agreement.
India was also keen to export petrol and diesel through the land route. New Delhi had also expressed its desire to supply 500 Mw of power.
India and Pakistan recently inked a visa liberalisation agreement to increase movement of businessmen and professionals between the two countries.
In a joint press statement in April after the meeting between the commerce ministers of both countries, the two sides had desired that discussions continue at the official level for possibilities of opening more land Customs stations for bilateral trade, which stands at around $3 billion.
Two-way trade between India and Pakistan is estimated to increase to $6 billion by 2013-14.
Commerce Secretary S R Rao, who is leading a 10-member delegation on a two-day visit to the neighbouring country, would review the progress in bilateral trade with his counterpart Munir Qureshi.
Issues such as increasing air connectivity and starting trade in petroleum products are expected to figure in the talks beginning tomorrow in Islamabad. The last commerce secretary-level talks were held in November 2011 here.
During the meeting, which aims at further boosting trade relations, matters that might get prominence include trade in electricity and opening of bank branches in each other’s country, said an official at the ministry of commerce and industry. Both sides might also sign the Customs cooperation and redressal of trade-related grievances agreement.
India was also keen to export petrol and diesel through the land route. New Delhi had also expressed its desire to supply 500 Mw of power.
India and Pakistan recently inked a visa liberalisation agreement to increase movement of businessmen and professionals between the two countries.
In a joint press statement in April after the meeting between the commerce ministers of both countries, the two sides had desired that discussions continue at the official level for possibilities of opening more land Customs stations for bilateral trade, which stands at around $3 billion.
Two-way trade between India and Pakistan is estimated to increase to $6 billion by 2013-14.
Wednesday, September 19, 2012
IndiGo emerges top carrier for 2nd month
New Delhi: Domestic airlines carried 43.69 lakh passengers in August this year, a decline of over 8.6 per cent compared with the same period last year.
According to the latest data from the Directorate General of Civil Aviation (DGCA), for the second consecutive month, the low-cost airline IndiGo carried the maximum number of domestic passengers at 12.05 lakh.
Market Share
In terms of market share, IndiGo again took the top spot with 27.6 per cent.
In August, Jet Airways flew 8.16 lakh passengers while SpiceJet carried 8.07 lakh.
The number of passengers flown by Jet Airways will be more if the 2.85 lakh passengers flown by its low-cost arm, JetLite (2.85 lakh), is also considered.
In addition, Air India carried 7.94 lakh passengers, GoAir (3.24 lakh) and Kingfisher (1.38 lakh).
Jet Airways enjoyed a market share of 18.7 per cent, followed by SpiceJet (18.5 per cent) and Air India (18.2 per cent).
Meanwhile, Air India has been asked to submit within a week a plan to enhance its domestic market share.
A Civil Aviation Ministry statement said the airline had been asked to include month-wise targets of market share along with the corresponding strategy to achieve these targets for the next one year.
According to the latest data from the Directorate General of Civil Aviation (DGCA), for the second consecutive month, the low-cost airline IndiGo carried the maximum number of domestic passengers at 12.05 lakh.
Market Share
In terms of market share, IndiGo again took the top spot with 27.6 per cent.
In August, Jet Airways flew 8.16 lakh passengers while SpiceJet carried 8.07 lakh.
The number of passengers flown by Jet Airways will be more if the 2.85 lakh passengers flown by its low-cost arm, JetLite (2.85 lakh), is also considered.
In addition, Air India carried 7.94 lakh passengers, GoAir (3.24 lakh) and Kingfisher (1.38 lakh).
Jet Airways enjoyed a market share of 18.7 per cent, followed by SpiceJet (18.5 per cent) and Air India (18.2 per cent).
Meanwhile, Air India has been asked to submit within a week a plan to enhance its domestic market share.
A Civil Aviation Ministry statement said the airline had been asked to include month-wise targets of market share along with the corresponding strategy to achieve these targets for the next one year.
IAN invests in Mexican food chain Poncho
ndian Angel Network (IAN), a network of over 200 business angels investing in start-ups and early stage ventures, made an undisclosed investment in Poncho, a Mumbai-based Mexican quick service restaurant. IAN investor Kaushal Aggarwal led the investment and investors like Saurabh Srivastava have invested in this round in Poncho.
IAN’s investment will help Poncho, founded by IITians Amit Raj and Anshul Gupta in August 2011, to scale up by opening new outlets, strengthening the back-end operations and ramping up the core team, a company statement said. Poncho has opened 6 outlets since its inception and plans to reach 15 by the end of this year.
The entry of renowned international brands and celebrities and rapidly growing eating-out habit have made restaurant sector a hot investment destination for Indian private equity/venture capital investors.
Major Indian PE/VC firms already have wider exposure to small and mid-sized QSRs. The Chennai-based TVS Capital has investments in Om Pizza (runs Papa John’s pizza chain) and Indian Cookery (runs the Yellow Chilli brand of restaurants of chef Sanjeev Kapoor). New Silk Route (NSR) is planning an investment to the tune of $100 million to expanding its food and restaurant portfolio. In May 2012, NSR invested in Bangalore-based restaurant chain Adiga’s.
Kaushal Aggarwal, an IAN member and co-founder & Managing Director, Avendus Capital said, “Food and beverage space has lately gained a lot of attention from the investors. Exclusive services and products are being offered by the start-ups in this sector.”
Other PE/VC deals that took place in restaurants space this year include Navis Asia’s investment in Nirulas Corner House, Verlinvest SA’s investment in Cuisine Asia. Last year, ICICI Ventures invested in RJ Corp’s Devyani International that runs KFC, Pizza Hut and Costa Coffee chains. The Delhi-based Sagar Ratna, a restaurant chain serving South Indian cuisine across the National Capital Region, raised $35 million from India Equity Partners.
IAN’s investment will help Poncho, founded by IITians Amit Raj and Anshul Gupta in August 2011, to scale up by opening new outlets, strengthening the back-end operations and ramping up the core team, a company statement said. Poncho has opened 6 outlets since its inception and plans to reach 15 by the end of this year.
The entry of renowned international brands and celebrities and rapidly growing eating-out habit have made restaurant sector a hot investment destination for Indian private equity/venture capital investors.
Major Indian PE/VC firms already have wider exposure to small and mid-sized QSRs. The Chennai-based TVS Capital has investments in Om Pizza (runs Papa John’s pizza chain) and Indian Cookery (runs the Yellow Chilli brand of restaurants of chef Sanjeev Kapoor). New Silk Route (NSR) is planning an investment to the tune of $100 million to expanding its food and restaurant portfolio. In May 2012, NSR invested in Bangalore-based restaurant chain Adiga’s.
Kaushal Aggarwal, an IAN member and co-founder & Managing Director, Avendus Capital said, “Food and beverage space has lately gained a lot of attention from the investors. Exclusive services and products are being offered by the start-ups in this sector.”
Other PE/VC deals that took place in restaurants space this year include Navis Asia’s investment in Nirulas Corner House, Verlinvest SA’s investment in Cuisine Asia. Last year, ICICI Ventures invested in RJ Corp’s Devyani International that runs KFC, Pizza Hut and Costa Coffee chains. The Delhi-based Sagar Ratna, a restaurant chain serving South Indian cuisine across the National Capital Region, raised $35 million from India Equity Partners.
TCS opens new centre in Minneapolis
New Delhi: Tata Consultancy Services has opened a new facility in Minnesota, which will serve as a hub for delivering technology services to customers in the region. The 50,000-square foot facility will house roughly 300 employees.
“The decision to open a new TCS facility in the Minneapolis region is part of our company’s on-going commitment to grow our presence in each and every market we serve,” said N. Chandrasekaran, TCS’ Chief Executive Officer and Managing Director.
“Over the past few years, Minnesota has put an emphasis on technological innovation that aligns with TCS’ breadth of industry expertise, innovative engineering strength and commitment to providing cutting-edge solutions, and will only enhance the scope and scale of our customer offerings in North America,” he added.
TCS, which had set up operations in New York City in 1979, now has 18 offices in the US.
“The decision to open a new TCS facility in the Minneapolis region is part of our company’s on-going commitment to grow our presence in each and every market we serve,” said N. Chandrasekaran, TCS’ Chief Executive Officer and Managing Director.
“Over the past few years, Minnesota has put an emphasis on technological innovation that aligns with TCS’ breadth of industry expertise, innovative engineering strength and commitment to providing cutting-edge solutions, and will only enhance the scope and scale of our customer offerings in North America,” he added.
TCS, which had set up operations in New York City in 1979, now has 18 offices in the US.
Bajaj inks distribution deal with Kawasaki for Indonesian market
Pune: Bajaj Auto has inked an alliance with Kawasaki Heavy Industries, under which Bajaj motorcycles will be assembled and sold in Indonesia through the latter’s distribution network as co-branded products.
The BAL board accorded its approval to the deal this morning, while the KHI had approved it on September 12.
The first product under this alliance will be the newly launched Bajaj Pulsar 200 NS and shipments to Indonesia will begin
in the middle of 2013, Rajiv Bajaj, Managing Director, BAL said. The bikes will be made in India and assembled overseas from SKD units.
Bajaj already exports variants of the Pulsar to Indonesia and has sold nearly 50,000 units here over the years. But given that the big four Japanese bike makers have a virtual stronghold over this 0.5 million units per annum market, the company required an entry strategy that was sustainable, Bajaj explained, adding “otherwise you can make a lot of losses.”
Bajaj and Kawasaki have had a similar partnership in the Philippines since 2004, and together command 45 per cent market share here. After Indonesia, the Indian company hopes to extend such a marketing arrangement to another six to seven markets globally, including Brazil, in the next 3-5 years’ time.
Elaborating on BAL’s strategy, Bajaj said it was clearly to stay specialised. “We have decide
d to be a global company and sell motorcycles all over the world. We want to stay in a narrow band as far as products are concerned,” he said.
Speaking at the company’s AGM here in July, Bajaj had told shareholders that the company wanted to achieve 10 million units in annual sales by 2016 and estimated that 50 per cent or more of this would come from exports.
Last year, Bajaj Auto sold 1.2 million motorbikes in overseas markets, representing 70 per cent of total motorcycle exported from India. In every market where sales exceed 10,000 units, the company sets up assembly units, Rakesh Sharma, President, International Business said, adding that the company has 14 such units so far in Africa, South Asia and Latin America. It is in the process of setting up six more in Kenya, Tanzania, Ethiopia, Egypt, and two more in West Africa.
The BAL board accorded its approval to the deal this morning, while the KHI had approved it on September 12.
The first product under this alliance will be the newly launched Bajaj Pulsar 200 NS and shipments to Indonesia will begin
in the middle of 2013, Rajiv Bajaj, Managing Director, BAL said. The bikes will be made in India and assembled overseas from SKD units.
Bajaj already exports variants of the Pulsar to Indonesia and has sold nearly 50,000 units here over the years. But given that the big four Japanese bike makers have a virtual stronghold over this 0.5 million units per annum market, the company required an entry strategy that was sustainable, Bajaj explained, adding “otherwise you can make a lot of losses.”
Bajaj and Kawasaki have had a similar partnership in the Philippines since 2004, and together command 45 per cent market share here. After Indonesia, the Indian company hopes to extend such a marketing arrangement to another six to seven markets globally, including Brazil, in the next 3-5 years’ time.
Elaborating on BAL’s strategy, Bajaj said it was clearly to stay specialised. “We have decide
d to be a global company and sell motorcycles all over the world. We want to stay in a narrow band as far as products are concerned,” he said.
Speaking at the company’s AGM here in July, Bajaj had told shareholders that the company wanted to achieve 10 million units in annual sales by 2016 and estimated that 50 per cent or more of this would come from exports.
Last year, Bajaj Auto sold 1.2 million motorbikes in overseas markets, representing 70 per cent of total motorcycle exported from India. In every market where sales exceed 10,000 units, the company sets up assembly units, Rakesh Sharma, President, International Business said, adding that the company has 14 such units so far in Africa, South Asia and Latin America. It is in the process of setting up six more in Kenya, Tanzania, Ethiopia, Egypt, and two more in West Africa.
India fourth most economically confident country in world: Ipsos
India's economic confidence, said a report by Ipsos, has got a major boost due to recent big-bang economic reforms such as the hike in diesel prices, FDI in retail, aviation and broadcasting, disinvestment in 4 public sector undertakings and cut in cash reserve ratio (CRR) by the Reserve Bank of India (RBI).
Mick Gordon, CEO of Ipsos in India said, Union Government of India unleashed a burst of economic policy reforms that included steep rise in heavily subsidized diesel price, limit on cooking gas subsidy for consumers and foreign investments into critical sectors such as aviation and retail, raising the hope that expected fiscal breach will now be lower and investments will pick up. Borrowers could see better days ahead as banks are expected to cut lending rates following the RBI's decision to unlock Rs 17,000 crore by slashing CRR by 25 basis points. The liquidity infusion would ensure adequate flow of credit to productive sectors of the economy.''
Slightly less than a half of Indian citizens (48%) believe their local economy which impacts their personal finance is good, a marginal rise of 2 points and an optimistic 53% people expect that the economy in their local area will be stronger in next six months.
The online Ipsos Economic Pulse of the World survey was conducted in August 2012 among 20,915 people in 24 countries.
The average global economic assessment of national economies remains static from last month as 38% of global citizens rate their national economies to be 'good'. Countries with the strongest proportion of citizens expecting their local economies to be 'stronger' six months from now include Brazil (65%) followed by India (53%), Saudi Arabia (47%), Mexico (41%), Argentina (40%) and China (38%).
Tuesday, September 18, 2012
CSIR-NIIST to transfer tech for making wood substitute
Thiruvananthapuram: The CSIR-National Institute for Interdisciplinary Science and Technology-Thiruvananthapuram (NIIST) is ready to transfer the latest home-grown technology.
NIIST will sign a memorandum of understanding with Kerala Furniture Consortium Pvt Ltd (KFCPL) for the purpose on Wednesday.
This is for transfer of the technology for making wood substitute from natural fibre composites, an official spokesman said here.
KFCPL will use the coir composite developed by CSIR-NIIST as a raw material to be used as an alternative substitute for hardwood.
The natural fibre polymer composite named ‘polycoir’ has been found to be suitable as a substitute for wood-based or alternative products, the spokesman said.
The process for making ‘polycoir’ utilises coir fibre as well as other natural fibres such as banana, jute, sisal etc.
Further technical development required for commercialisation of fibre composites will be undertaken jointly by the parties to the MoU.
The composite will be converted by KFCPL into unique design formats of furniture and accessories on market requirements.
Great Potential
According to Suresh Das, director, CSIR-NIIST, there is great potential for employing unutilised or underutilised lingo-cellulosic fibres for making composite material.
The material can be engineered as per requirement and possesses several unique properties like fire, termite and water resistance.
Surface properties as well as physical and mechanical attributes may also be fine-tuned as per requirement.
KFCPL now joins hands with CSIR-NIIST for employing natural resources in the making of alternate materials, which can substitute wood, the spokesman said.
K.P. Raveendran, managing director, KFCPL, said that a range of knocked-down furniture series would be brought out using this material by the end of this year.
Benchmarked Cluster
KFCPL is one of the seven clusters benchmarked by the National Innovation Council under the chairmanship of Sam Pitroda.
It is a common facility centre to pursue seasoning, designing, standardising, testing and finishing of rubber woods for manufacturing furniture.
As an innovation cluster of national importance, KFCPL is dedicated to develop patented alternate substitutes for the deficient rainforest hardwood.
The cluster is destined to boost innovation and competitiveness in the micro, small and medium enterprises sector in the State.
This is sought to be done by upgrading the quality of the furniture and related industry business environment.
NIIST will sign a memorandum of understanding with Kerala Furniture Consortium Pvt Ltd (KFCPL) for the purpose on Wednesday.
This is for transfer of the technology for making wood substitute from natural fibre composites, an official spokesman said here.
KFCPL will use the coir composite developed by CSIR-NIIST as a raw material to be used as an alternative substitute for hardwood.
The natural fibre polymer composite named ‘polycoir’ has been found to be suitable as a substitute for wood-based or alternative products, the spokesman said.
The process for making ‘polycoir’ utilises coir fibre as well as other natural fibres such as banana, jute, sisal etc.
Further technical development required for commercialisation of fibre composites will be undertaken jointly by the parties to the MoU.
The composite will be converted by KFCPL into unique design formats of furniture and accessories on market requirements.
Great Potential
According to Suresh Das, director, CSIR-NIIST, there is great potential for employing unutilised or underutilised lingo-cellulosic fibres for making composite material.
The material can be engineered as per requirement and possesses several unique properties like fire, termite and water resistance.
Surface properties as well as physical and mechanical attributes may also be fine-tuned as per requirement.
KFCPL now joins hands with CSIR-NIIST for employing natural resources in the making of alternate materials, which can substitute wood, the spokesman said.
K.P. Raveendran, managing director, KFCPL, said that a range of knocked-down furniture series would be brought out using this material by the end of this year.
Benchmarked Cluster
KFCPL is one of the seven clusters benchmarked by the National Innovation Council under the chairmanship of Sam Pitroda.
It is a common facility centre to pursue seasoning, designing, standardising, testing and finishing of rubber woods for manufacturing furniture.
As an innovation cluster of national importance, KFCPL is dedicated to develop patented alternate substitutes for the deficient rainforest hardwood.
The cluster is destined to boost innovation and competitiveness in the micro, small and medium enterprises sector in the State.
This is sought to be done by upgrading the quality of the furniture and related industry business environment.
Tech Mahindra buys 51% stake in Comviva
Tech Mahindra, on Monday announced the acquisition of 51 per cent stake in mobile value-added services (VAS) provider Comviva Technologies, a Bharti Group company, for Rs 260 crore. The acquisition is expected to shore Tech Mahindra’s top line.
With the new brand identity, Mahindra Comviva, the mobility business of Tech Mahindra and Mahindra Satyam combined is expected to clock revenues of Rs 1,000 crore by March 2013.
At present, Tech Mahindra and Mahindra Satyam get around Rs 500 crore of revenues from their telecom mobility business, which includes providing software and billing systems. Comviva gets an annual revenue of Rs 400 crore. The operating margins of the company are in mid-teens.
“By March 2013, the combined mobility practice of the group, which will include revenue of Tech Mahindra, Mahindra Satyam and Comviva, along with CanvasM (another group company), should be around Rs 1,000 crore,” C P Gurnani, managing director, Tech Mahindra, said. The deal will be earnings per share-accretive from the first year.
As part of the deal, Tech Mahindra, the country’s sixth-largest software provider, is making an up-front payment of Rs 125 crore for the stake and the remaining Rs 135 crore will be paid over a five-year period based on the company achieving mutually-agreed performance targets. The deal will be funded through internal accruals.
"It is a positive move. Tech Mahindra has not been able to grow organically, and has been building on competencies outside its domain, inorganically. This acquisition will give Tech Mahindra a foothold in mobile payment and solutions. The top-10 clients account for almost 85 per cent of the company's revenue. They also get to expand into markets like Africa and Latin America. The only concern is Comviva is a Bharti Group company, and Airtel is the top client, " said Ankita Somani, an information technology analyst at Angel Broking.
The current promoter Bharti Group will continue to hold a 20 per cent stake on a fully-diluted basis in Comviva after the deal closure. Investors Sequoia Capital and Cisco Systems, which had nine per cent and six per cent stake in the company, respectively, have exited fully. Another investor, WestBridge Capital, will have a nine per cent stake in Mahindra Comviva.
The deal comes two weeks after the Mahindra group bought the India-based call-centre operations of Hutchison Whampoa for $87.1 million (Rs 484.03 crore), a deal the software services provider said will give it a revenue leg-up of $845 million over the next five years. This deal was financed by funds borrowed from Mahindra Satyam.
This acquisition will significantly enhance Tech Mahindra’s capabilities in the mobile VAS domain, and will provide access to a marquee client base, enabling significant cross-selling opportunities. Tech Mahindra will enable Comviva’s entry into developed markets such as the US and the Europe.
Comviva was founded in 1999 as Bharti Telesoft Limited. It changed its name to Comviva Technologies in 2009. The company’s solutions are deployed with over 130 service providers and banks in over 90 countries across Asia, Africa, Middle East, Latin America and Europe. It gives services to more than a billion mobile subscribers.
“This is a significant step forward, in our vision of being a complete and comprehensive partner to our clients and, like always, we are confident of making this a successful venture for our stakeholders. In addition to the market leading capabilities, this will also add to our relationship with large operator groups across the world,” said Vineet Nayyar, executive vice-chairman, Tech Mahindra.
Shares of Tech Mahindra on Monday closed at Rs 903.45, down 0.69 per cent from the previous close.
With the new brand identity, Mahindra Comviva, the mobility business of Tech Mahindra and Mahindra Satyam combined is expected to clock revenues of Rs 1,000 crore by March 2013.
At present, Tech Mahindra and Mahindra Satyam get around Rs 500 crore of revenues from their telecom mobility business, which includes providing software and billing systems. Comviva gets an annual revenue of Rs 400 crore. The operating margins of the company are in mid-teens.
“By March 2013, the combined mobility practice of the group, which will include revenue of Tech Mahindra, Mahindra Satyam and Comviva, along with CanvasM (another group company), should be around Rs 1,000 crore,” C P Gurnani, managing director, Tech Mahindra, said. The deal will be earnings per share-accretive from the first year.
As part of the deal, Tech Mahindra, the country’s sixth-largest software provider, is making an up-front payment of Rs 125 crore for the stake and the remaining Rs 135 crore will be paid over a five-year period based on the company achieving mutually-agreed performance targets. The deal will be funded through internal accruals.
"It is a positive move. Tech Mahindra has not been able to grow organically, and has been building on competencies outside its domain, inorganically. This acquisition will give Tech Mahindra a foothold in mobile payment and solutions. The top-10 clients account for almost 85 per cent of the company's revenue. They also get to expand into markets like Africa and Latin America. The only concern is Comviva is a Bharti Group company, and Airtel is the top client, " said Ankita Somani, an information technology analyst at Angel Broking.
The current promoter Bharti Group will continue to hold a 20 per cent stake on a fully-diluted basis in Comviva after the deal closure. Investors Sequoia Capital and Cisco Systems, which had nine per cent and six per cent stake in the company, respectively, have exited fully. Another investor, WestBridge Capital, will have a nine per cent stake in Mahindra Comviva.
The deal comes two weeks after the Mahindra group bought the India-based call-centre operations of Hutchison Whampoa for $87.1 million (Rs 484.03 crore), a deal the software services provider said will give it a revenue leg-up of $845 million over the next five years. This deal was financed by funds borrowed from Mahindra Satyam.
This acquisition will significantly enhance Tech Mahindra’s capabilities in the mobile VAS domain, and will provide access to a marquee client base, enabling significant cross-selling opportunities. Tech Mahindra will enable Comviva’s entry into developed markets such as the US and the Europe.
Comviva was founded in 1999 as Bharti Telesoft Limited. It changed its name to Comviva Technologies in 2009. The company’s solutions are deployed with over 130 service providers and banks in over 90 countries across Asia, Africa, Middle East, Latin America and Europe. It gives services to more than a billion mobile subscribers.
“This is a significant step forward, in our vision of being a complete and comprehensive partner to our clients and, like always, we are confident of making this a successful venture for our stakeholders. In addition to the market leading capabilities, this will also add to our relationship with large operator groups across the world,” said Vineet Nayyar, executive vice-chairman, Tech Mahindra.
Shares of Tech Mahindra on Monday closed at Rs 903.45, down 0.69 per cent from the previous close.
Spices Board joins hands with CII, USFDA for training centre
Kochi: The Spices Board has decided to partner with CII and USFDA to set up a collaborative training centre for food safety and supply chain management. This is to clear apprehension and concern on quality of spices and spices products exported from India.
Inaugurating the collaborative training centre here on Monday, A. Jayathilak, Chairman, Spices Board, said that the centre, the first of its kind in India, is the culmination of the decision taken in the aftermath of the World Spice Congress held in Pune in February this year.
The collaborative training centre for food safety and supply chain management in spices/botanical ingredients is being set up to facilitate capacity building and developing product specific testing procedures in the sector of spices and botanical ingredients.
Spices Board and CII – FACE (Jubilant Bhartia Food and Agriculture Centre of Excellence) is partnering with JIFSAN (The Joint Institute for Food Safety and Applied Nutrition) / USFDA (US Food and Drug Administration) in establishing the centre.
The first phase of the training has commenced in Kochi on Monday being attended by over 60 officials and functionaries from 50 organisations from both the Government and non government sector consisting of processors, trader, exporters, etc.
The phase two for selected deleparticipants attending phase two would be involved in a series of workshop and gates will be held in the US for two weeks. In phase three, training programmes in different regions of India.
Supply chain help
The training centre assumes importance in the context of most of the countries especially the US and EU bringing in stringent legislations regarding the standards of spices imported to respective countries. This will give producing countries like India, an edge over the other competitors on the export front.
The centre would strengthen the supply chain management for both domestic and international trade through providing technical support to organisations through training, information sharing and technical consultancy to organisations selected by the Board, in the upgradation of their manufacturing, processing facilities, quality control assurance system, implementing hygiene and food safety management system, etc.
Various stakeholders in the supply chain will be provided with training, counselling, consultancy, etc to build up their capabilities and enable them to be globally competitive.
Inaugurating the collaborative training centre here on Monday, A. Jayathilak, Chairman, Spices Board, said that the centre, the first of its kind in India, is the culmination of the decision taken in the aftermath of the World Spice Congress held in Pune in February this year.
The collaborative training centre for food safety and supply chain management in spices/botanical ingredients is being set up to facilitate capacity building and developing product specific testing procedures in the sector of spices and botanical ingredients.
Spices Board and CII – FACE (Jubilant Bhartia Food and Agriculture Centre of Excellence) is partnering with JIFSAN (The Joint Institute for Food Safety and Applied Nutrition) / USFDA (US Food and Drug Administration) in establishing the centre.
The first phase of the training has commenced in Kochi on Monday being attended by over 60 officials and functionaries from 50 organisations from both the Government and non government sector consisting of processors, trader, exporters, etc.
The phase two for selected deleparticipants attending phase two would be involved in a series of workshop and gates will be held in the US for two weeks. In phase three, training programmes in different regions of India.
Supply chain help
The training centre assumes importance in the context of most of the countries especially the US and EU bringing in stringent legislations regarding the standards of spices imported to respective countries. This will give producing countries like India, an edge over the other competitors on the export front.
The centre would strengthen the supply chain management for both domestic and international trade through providing technical support to organisations through training, information sharing and technical consultancy to organisations selected by the Board, in the upgradation of their manufacturing, processing facilities, quality control assurance system, implementing hygiene and food safety management system, etc.
Various stakeholders in the supply chain will be provided with training, counselling, consultancy, etc to build up their capabilities and enable them to be globally competitive.
Federation of Hotel & Restaurant Associations of India joins hand with four International Hospitality Associations
The apex hospitality industry body, Federation of Hotel & Restaurant Associations of India (FHRAI) has signed four Memorandum of Understandings (MoUs) with its international counterparts, spanning in USA, Europe, Middle East, UK, China and UNWTO fostering a new relationship between the Indian and foreign hoteliers to exchange expertise and fraternity strategy evolution.
The international associations including, the Hospitality Financial and Technology Professionals (HFTP), the Asian American Hotel Owners Association (AAHOA), the International Hotel & Restaurant Association (IH&RA), United Nations World Tourism Organization (UNWTO) and American Hotel & Lodging Educational Institute (AHLEI) were present at the recently held 47 thAnnual FHRAI Convention at Goa.
FHRAI adopted IH&RA's iconic programme, Evolution (Global sustainability management platform) for its members in India. FHRAI has become the first Association in India adopting this exclusive programme that was adopted by thousands of hoteliers Worldwide.
Mr. Kamlesh Barot, President, FHRAI, said, "Indian Hospitality industry is on its growth trajectory and the leaders of this industry are committed to the cause of tourism promotion in this country tapping the huge potential of cultural diversity to offer as a showcase to tourists . IH&RA has also invited FHRAI members to join their Emeraude Hotel program."
"With these 2 programs, FHRAI will be the FIRST association in Asia to promote active sustainability at their member hospitality establishments," added Mr. Barot.
The international associations including, the Hospitality Financial and Technology Professionals (HFTP), the Asian American Hotel Owners Association (AAHOA), the International Hotel & Restaurant Association (IH&RA), United Nations World Tourism Organization (UNWTO) and American Hotel & Lodging Educational Institute (AHLEI) were present at the recently held 47 thAnnual FHRAI Convention at Goa.
FHRAI adopted IH&RA's iconic programme, Evolution (Global sustainability management platform) for its members in India. FHRAI has become the first Association in India adopting this exclusive programme that was adopted by thousands of hoteliers Worldwide.
Mr. Kamlesh Barot, President, FHRAI, said, "Indian Hospitality industry is on its growth trajectory and the leaders of this industry are committed to the cause of tourism promotion in this country tapping the huge potential of cultural diversity to offer as a showcase to tourists . IH&RA has also invited FHRAI members to join their Emeraude Hotel program."
"With these 2 programs, FHRAI will be the FIRST association in Asia to promote active sustainability at their member hospitality establishments," added Mr. Barot.
RBI cuts CRR; home, auto loans set to become cheaper
MUMBAI: Home and auto loans will gradually become cheaper over the next few months with the Reserve Bank of India announcing a cut in the cash reserve ratio (CRR) by a quarter of a percentage point (25 basis points) to 4.5% in its policy review meeting on Monday. The central bank, however disappointed industry by leaving its key policy rates —repo and reverse repo —unchanged, mainly because of a sudden spike in the rate of inflation for August.
Repo rate is the rate at which banks borrow money from RBI in case they are short of funds, while reverse repo rate is the rate of interest banks get when they park their surplus funds with the central bank. CRR, on the other hand is the liquid cash that banks need to keep with the RBI to meet any emergency cash requirement and the central bank does not pay any interest to banks on this money.
Once rate of inflation starts falling, which corporate heads and economists believe could happen around Diwali in November, interest rates would come down at a faster clip, benefiting consumers, home and car buyers as well as corporate entities.
Chances of a cut in interest rates by banks for consumers lifted stocks of consumer industries like automobiles and real estate and led to a 78-point rise in the sensex. The rupee too reacted positively, breaking above the 54 mark to the dollar, a 4-month high, in intra-day trades but closed at 54.01 to a dollar, compared to 54.31 on Friday.
The RBI, in its statement said that the cut in CRR would release around Rs 17,000 crore into the economy, meaning banks will have this much extra money to lend to their borrowers. "Given the comfortable liquidity and the recent reduction in deposit rates by banks, interest rates in general could be expected to trend downwards gradually," said Chanda Kochhar, MD & CEO, ICICI Bank. "However, we will have to continue to keep an eye on funding costs given the level of CASA deposit growth in the system," Kochhar said.
India Inc could also take succour from finance MinisterP Chidambaram statement that the government would take further steps in the next one and a half months to bring more fiscal discipline, while indicating that the response of the central bank on October 30 will be more supportive of growth. Corporates still want more. "A major stimulus in reduction of interest rate and implementation of these policy changes hold the key to long-term sustainable growth," Harsh Goenka, chairman, RPG Enterprises, said.
Economists expect that the RBI will soon decide to buy government securities from the market, called open market operations (OMOs), which would leave even more funds with banks to lend. At a time when credit offtake is slow, the combined impact of CRR cut and OMOs could eventually lead to much greater availability of funds in the system, which in turn could lead to a 50-100 basis points (bps) drop in the rates of interest in the economy, economists TOI spoke to said.
"The policy stance remains cautious given the current high headline inflation and the high chance of the headline print going up further in coming months," said Siddhartha Sanyal, India economist, Barclays Capital. Of late the central bank has been using the liquidity enhancement measures more often (it cut CRR in January, March and now in September and cut SLR in April and exports credit refinance in June) than going for a cut in key policy rates. "The RBI policy of late suggests its hesitation to use the headline repo rate at the moment, while the central bank remains more comfortable easing the liquidity measures further," Sanyal said.
Economists also believe that the cut in CRR has the potential to boost the profitability of banks by about Rs 2,000 crore, since this would lower the amount of non-interest earning cash with the RBI.
In addition to the increasing chances of a fall in rate of interest, the corporate sector is also enthused by RBI's slightly dovish statement now, which accommodates the general concern about the slowdown in economic growth, compared to its earlier stance that earned it the sobriquet of an inflation hawk. "RBI's mid quarter policy statement appears more dovish than its previous statements this year, possibly resulting from recent positive fiscal actions," said Ajay Srinivasan, chief executive—financial services, Aditya Birla Group.
In its statement, the central bank acknowledged that monetary policy also had an important role in supporting the revival of growth in the economy, but given the persistently high inflation, along with risks emerging from twin deficits (current account and fiscal), a stronger monetary policy to perk up growth may even backfire.
Repo rate is the rate at which banks borrow money from RBI in case they are short of funds, while reverse repo rate is the rate of interest banks get when they park their surplus funds with the central bank. CRR, on the other hand is the liquid cash that banks need to keep with the RBI to meet any emergency cash requirement and the central bank does not pay any interest to banks on this money.
Once rate of inflation starts falling, which corporate heads and economists believe could happen around Diwali in November, interest rates would come down at a faster clip, benefiting consumers, home and car buyers as well as corporate entities.
Chances of a cut in interest rates by banks for consumers lifted stocks of consumer industries like automobiles and real estate and led to a 78-point rise in the sensex. The rupee too reacted positively, breaking above the 54 mark to the dollar, a 4-month high, in intra-day trades but closed at 54.01 to a dollar, compared to 54.31 on Friday.
The RBI, in its statement said that the cut in CRR would release around Rs 17,000 crore into the economy, meaning banks will have this much extra money to lend to their borrowers. "Given the comfortable liquidity and the recent reduction in deposit rates by banks, interest rates in general could be expected to trend downwards gradually," said Chanda Kochhar, MD & CEO, ICICI Bank. "However, we will have to continue to keep an eye on funding costs given the level of CASA deposit growth in the system," Kochhar said.
India Inc could also take succour from finance MinisterP Chidambaram statement that the government would take further steps in the next one and a half months to bring more fiscal discipline, while indicating that the response of the central bank on October 30 will be more supportive of growth. Corporates still want more. "A major stimulus in reduction of interest rate and implementation of these policy changes hold the key to long-term sustainable growth," Harsh Goenka, chairman, RPG Enterprises, said.
Economists expect that the RBI will soon decide to buy government securities from the market, called open market operations (OMOs), which would leave even more funds with banks to lend. At a time when credit offtake is slow, the combined impact of CRR cut and OMOs could eventually lead to much greater availability of funds in the system, which in turn could lead to a 50-100 basis points (bps) drop in the rates of interest in the economy, economists TOI spoke to said.
"The policy stance remains cautious given the current high headline inflation and the high chance of the headline print going up further in coming months," said Siddhartha Sanyal, India economist, Barclays Capital. Of late the central bank has been using the liquidity enhancement measures more often (it cut CRR in January, March and now in September and cut SLR in April and exports credit refinance in June) than going for a cut in key policy rates. "The RBI policy of late suggests its hesitation to use the headline repo rate at the moment, while the central bank remains more comfortable easing the liquidity measures further," Sanyal said.
Economists also believe that the cut in CRR has the potential to boost the profitability of banks by about Rs 2,000 crore, since this would lower the amount of non-interest earning cash with the RBI.
In addition to the increasing chances of a fall in rate of interest, the corporate sector is also enthused by RBI's slightly dovish statement now, which accommodates the general concern about the slowdown in economic growth, compared to its earlier stance that earned it the sobriquet of an inflation hawk. "RBI's mid quarter policy statement appears more dovish than its previous statements this year, possibly resulting from recent positive fiscal actions," said Ajay Srinivasan, chief executive—financial services, Aditya Birla Group.
In its statement, the central bank acknowledged that monetary policy also had an important role in supporting the revival of growth in the economy, but given the persistently high inflation, along with risks emerging from twin deficits (current account and fiscal), a stronger monetary policy to perk up growth may even backfire.
NSL to set up 75 MW wind farm in Maharashtra, secures IFC loan
Hyderabad: NSL Renewable Power Private Ltd, a subsidiary of NSL Group, is setting up a 75 MW wind farm in Maharashtra in two phases.
It has secured a $19 million (about Rs 100 crore) loan from International Finance Corporation for its wind power farm.
International Finance Corporation, World Bank Group, which had also earlier invested in NSL firm, recently approved the investment to part fund the wind project estimated to cost about Rs 500 crore.
The Hyderabad-based diversified group is setting up several wind farms including a 75 MW wind power project in Chilarwadi village in Satara district of Maharashtra. This is being implemented by its step down subsidiary NSL Wind Power Company (Satara) Private Ltd.
The company proposes to implement the project in two phases with 25.5 MW in the first phase. Each phase will have a construction period of six months from the commencement of work.
For NSL arm, the project involves supply, erection and operations and maintenance of 50 wind turbines with each unit generating 1.5 mw. This is to be supplied by ReGen under a supply pact with NSL Wind. ReGen, a group firm, is also operations and maintenance operator of the project. It has constructed a 220 kV transmission line from pooling station to Maharashtra State transmission company.
The diversified NSL group has interests in seeds, power including renewable energy, sugar and infrastructure.
It has secured a $19 million (about Rs 100 crore) loan from International Finance Corporation for its wind power farm.
International Finance Corporation, World Bank Group, which had also earlier invested in NSL firm, recently approved the investment to part fund the wind project estimated to cost about Rs 500 crore.
The Hyderabad-based diversified group is setting up several wind farms including a 75 MW wind power project in Chilarwadi village in Satara district of Maharashtra. This is being implemented by its step down subsidiary NSL Wind Power Company (Satara) Private Ltd.
The company proposes to implement the project in two phases with 25.5 MW in the first phase. Each phase will have a construction period of six months from the commencement of work.
For NSL arm, the project involves supply, erection and operations and maintenance of 50 wind turbines with each unit generating 1.5 mw. This is to be supplied by ReGen under a supply pact with NSL Wind. ReGen, a group firm, is also operations and maintenance operator of the project. It has constructed a 220 kV transmission line from pooling station to Maharashtra State transmission company.
The diversified NSL group has interests in seeds, power including renewable energy, sugar and infrastructure.
ITC flags off world's largest green hotel
Chennai: ITC today launched its imposing Grand Chola, a 600-key luxury hotel in Chennai. Inaugurated by J. Jayalalithaa, Chief Minister of Tamil Nadu, this hotel is the company’s biggest property in the country and “the world’s largest LEED Platinum green hotel (an eco certificate).”
Third largest hotel in India
In terms of room inventory, this will be the third largest hotel in the country, after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai.
The company has invested over Rs 1,200 crore in the property which spreads over eight acres of land.
Designed to “recall the grandeur and lifestyle of the imperial Chola dynasty,” the integrated upmarket hotel complex also houses one lakh sq.ft. of conference and exhibition facilities, which, according to the company, is by far the biggest in the country — 10 food and beverage outlets, a spa, a preview theatre and 40,000 sq.ft. of retail space. It will carry the tag of ‘Luxury Collection’ — one of the brands franchised from the US-based international hospitality group, Starwood Hotels. This is the ninth ‘Luxury Collection’ hotel of the group.
Addressing the media at a conference organised here to mark the launch of the property today, Y.C. Deveshwar, Chairman, ITC Ltd, said this kind of banqueting space will market Chennai in a big way, and will bring in a lot of new businesses.
Though at present, Chennai seems to be a little “over-supplied market,” the city needs such a product, “as we see greater demand in the months to come,” he said. According to industry experts, with 0.55 rooms per every 1,000 people, Chennai has the lowest hotel room penetration among the major cities. For example, Mumbai has 0.57 rooms, New Delhi has 0.59; Hyderabad 0.62 and Bangalore 0.84 room per 1,000 people.
Intended to be a game-changer, will Grand Chola cannibalise ITC’s other properties in the city, and eat into the market share of other brands for the time being? “Yes, it will. But, every brand has to compete,” said Deveshwar.
Third largest hotel in India
In terms of room inventory, this will be the third largest hotel in the country, after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai.
The company has invested over Rs 1,200 crore in the property which spreads over eight acres of land.
Designed to “recall the grandeur and lifestyle of the imperial Chola dynasty,” the integrated upmarket hotel complex also houses one lakh sq.ft. of conference and exhibition facilities, which, according to the company, is by far the biggest in the country — 10 food and beverage outlets, a spa, a preview theatre and 40,000 sq.ft. of retail space. It will carry the tag of ‘Luxury Collection’ — one of the brands franchised from the US-based international hospitality group, Starwood Hotels. This is the ninth ‘Luxury Collection’ hotel of the group.
Addressing the media at a conference organised here to mark the launch of the property today, Y.C. Deveshwar, Chairman, ITC Ltd, said this kind of banqueting space will market Chennai in a big way, and will bring in a lot of new businesses.
Though at present, Chennai seems to be a little “over-supplied market,” the city needs such a product, “as we see greater demand in the months to come,” he said. According to industry experts, with 0.55 rooms per every 1,000 people, Chennai has the lowest hotel room penetration among the major cities. For example, Mumbai has 0.57 rooms, New Delhi has 0.59; Hyderabad 0.62 and Bangalore 0.84 room per 1,000 people.
Intended to be a game-changer, will Grand Chola cannibalise ITC’s other properties in the city, and eat into the market share of other brands for the time being? “Yes, it will. But, every brand has to compete,” said Deveshwar.
Dubai-based KEF Company to invest Rs 1,600 cr in Kerala
Kochi: The Dubai-based KEF Company has unveiled plans for three projects in the State, involving an investment of Rs 1,600 crore.
They include a luxury hotel, integrated manufacturing facilities with pre-cast concrete technology and a super speciality hospital in Kozhikode.
Faizal Kottikollon, chairman, told reporters here that a modern integrated manufacturing facility, specialising in precast concrete technology, is the first project being planned.
A world-class 500-bed tertiary care hospital and a five-star hotel are next in line. These projects are expected to create 5,000 to 10,000 jobs in the State, he said.
Integrated Factories
Three factories will have integrated manufacturing facilities with pre-cast concrete technology for making kitchens, toilets, doors and windows at an investment of Rs 300 crore.
The precast plant, he said, is envisaged as a high-tech, quality-controlled facility for the development of infrastructure sector. It will ensure enhanced quality and expediting on-time project execution.
Quoting studies, he said that precast technology provides significant benefits in early completion of the project, with time savings of up to 40 per cent over conventional methods of construction.
Hospital Project
The 500-bed super-specialty hospital is being built as a joint venture with the PeeKay Group, a leading business group in Kerala and Ali Faizal, a renowned cardiologist in Kozhikode.
The facility, which is expected to open by the end of next year, will primarily focus on cardiac sciences, neurosciences and orthopaedics, along with a world-class rehabilitation programme. The company is aiming to create a research based centre of excellence and establish it as a novel centre of medical tourism in the region.
5-Star Hotel
The hotel will be set up on 30 acres at Chelambra in Kozhikode with a modern convention centre to accommodate 3,500 people.
The KEF Company that operates out of Dubai International Financial Centre is a multi-tiered holding company with interests across eight verticals that include infrastructure, healthcare, hospitality, education, investments, agriculture, metals and sports.
They include a luxury hotel, integrated manufacturing facilities with pre-cast concrete technology and a super speciality hospital in Kozhikode.
Faizal Kottikollon, chairman, told reporters here that a modern integrated manufacturing facility, specialising in precast concrete technology, is the first project being planned.
A world-class 500-bed tertiary care hospital and a five-star hotel are next in line. These projects are expected to create 5,000 to 10,000 jobs in the State, he said.
Integrated Factories
Three factories will have integrated manufacturing facilities with pre-cast concrete technology for making kitchens, toilets, doors and windows at an investment of Rs 300 crore.
The precast plant, he said, is envisaged as a high-tech, quality-controlled facility for the development of infrastructure sector. It will ensure enhanced quality and expediting on-time project execution.
Quoting studies, he said that precast technology provides significant benefits in early completion of the project, with time savings of up to 40 per cent over conventional methods of construction.
Hospital Project
The 500-bed super-specialty hospital is being built as a joint venture with the PeeKay Group, a leading business group in Kerala and Ali Faizal, a renowned cardiologist in Kozhikode.
The facility, which is expected to open by the end of next year, will primarily focus on cardiac sciences, neurosciences and orthopaedics, along with a world-class rehabilitation programme. The company is aiming to create a research based centre of excellence and establish it as a novel centre of medical tourism in the region.
5-Star Hotel
The hotel will be set up on 30 acres at Chelambra in Kozhikode with a modern convention centre to accommodate 3,500 people.
The KEF Company that operates out of Dubai International Financial Centre is a multi-tiered holding company with interests across eight verticals that include infrastructure, healthcare, hospitality, education, investments, agriculture, metals and sports.
Biocon and Manipal Education Malaysia ink pact for talent management program
Bengaluru: Bangalore-based biotechnology firm Biocon entered into a partnership with Manipal Education Malaysia (MEMp) for a graduate program on Talent Management in biotech sector. The MOU will include an internship and graduate employment program for students of Manipal International University who will be trained and employed in Biocon's Malaysian factory.
"As we expand our footprint into Malaysia, we want to ensure that we play our part in the development of the Malaysian Human Resource for the biopharmaceutical industry. Our biopharma facility in Bio-XCell, Iskandar Malaysia will be a fully-integrated manufacturing and R&D facility which will require many talented graduates, not just in biotechnology, but also in other management disciplines. We would like to hire a large number of good local talent and nurture them further to shape up into fine biotech professionals, " said CMD Kiran Mazumdar Shaw.
Biocon is developing its manufacturing and R&D facility in Iskandar Malaysia, Johor with an investment of over RM 500 million, which will be operational in 2014.
"Universities cannot operate in isolation. Industry linkages are crucial to ensure continuous relevance between syllabus with industry development and latest R&D. Industry linkages also provide our students with industrial training and employment opportunities, thus, it is our aim to forge linkages with global industry leaders, like Biocon."
"As we expand our footprint into Malaysia, we want to ensure that we play our part in the development of the Malaysian Human Resource for the biopharmaceutical industry. Our biopharma facility in Bio-XCell, Iskandar Malaysia will be a fully-integrated manufacturing and R&D facility which will require many talented graduates, not just in biotechnology, but also in other management disciplines. We would like to hire a large number of good local talent and nurture them further to shape up into fine biotech professionals, " said CMD Kiran Mazumdar Shaw.
Biocon is developing its manufacturing and R&D facility in Iskandar Malaysia, Johor with an investment of over RM 500 million, which will be operational in 2014.
"Universities cannot operate in isolation. Industry linkages are crucial to ensure continuous relevance between syllabus with industry development and latest R&D. Industry linkages also provide our students with industrial training and employment opportunities, thus, it is our aim to forge linkages with global industry leaders, like Biocon."
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