New Delhi: India is set to emerge as the manufacturing hub for Chinese consumer durables maker Haier’s exports to the neighbouring markets and African region.
Logistically, it makes sense to make India the production base for this region and Africa, according to Eric Braganza, president, Haier Appliances (India). The company would initially export refrigerators and washing machines, most of which would be produced in India. “Over the next two years, about 25% revenue of Indian operations would come from exports,” he added.
With the Buoyant demand in the domestic market and increasing exports, the company would need to set up a second manufacturing plant in about three years from now, said Braganza. “It would be based in the northern part of India. Before that, the company would expand its production facility at Ranjangaon near Pune by 2014, where it produces refrigerators and few models of washing machines at present.
Haier India, which is a wholly-owned subsidiary of the $20-billion Chinese parent, intends to produce almost all its models across categories in India, including air-conditioning machines and water heaters, going forward, said Braganza. It currently imports all TV panels and water heaters from China.
Quantum of investments for the capacity augmentation at Ranjangaon and the second facility is yet to be firmed up, he added. The company has so far invested about Rs 120 crore at the Ranjangaon factory.
Haier targets revenue at Rs 1,250 crore in 2012, and Rs 1,600 crore in 2013 from Indian market, said Braganza. In 2011, the company had a turnover of more than Rs 970 crore.
At present, the Ranjangaon facility has an installed capacity of 10 lakh units of refrigerators annually, which will be ramped up to 20 lakh units in the next two years at an investment of about Rs 40 crore, he added.
This year, Haier will produce 6.5 lakh units of refrigerators.
In 2012, the company targets to sell about 4.8 lakh units of refrigerators, 2 lakh washing machines, 2.5 lakh TVs, 60,000 ACs and 55,000 water heaters in India.
Haier India currently has 170 exclusive stores, apart from being retailed from 4,500 multi-brand outlets. It is increasing this to 250 exclusive outlets and 6,000 other outlets by 2013. It employs 1,300 people.
Haier, which positions itself as the mid-market brand in India, claims a 12% market share in the deep freeze category, followed by 6% in refrigerator, 4-5% in washing machines and about 3% in the air-conditioning market in India. “We aim to have a three-fold market share within the next three years,” Braganza said.
Success in my Habit
Tuesday, October 30, 2012
Entertainment & media sector to touch Rs 1.75 lakh cr by 2016: Study
New Delhi: The entertainment and media industry in India is set to touch Rs 1.75 lakh crore by 2016, on the back of continued growth in advertising and increasing consumer spend, according to a joint study by industry body Confederation of Indian Industry (CII) and consulting firm PricewaterhouseCoopers (PwC).
The industry, which was estimated at Rs 80,000 crore in 2011, will grow at 17 per cent compounded annual growth rate (CAGR) between 2012 and 2016, according to the ‘Indian Entertainment & Media Outlook 2012’ report.
“The potential game-changers in the industry would be rising advertising and consumer spend, infrastructure and policy support,” it said.
The Indian entertainment and media industry has been identified as the fastest growing, followed by China (14 per cent), Russia (12 per cent) and Brazil (11 per cent).
The advertising segment, which contributes about 35 per cent of revenue in the entertainment and media industry in India, is dominated by television and print that constitute about 80 per cent of the pie, the study said, pointing out that both the segments will continue to dominate the industry over the next five years.
Rising disposable incomes, coupled with macroeconomic stability, will also drive rapid growth in consumer spend in the industry, the study said.
“Increased advertising and consumer spend will take the industry to desired heights. This will be fuelled by technological innovation, leading to better quality of media content being consumed. Internet access will be a key enabler in driving the growth,” said Smita Jha, leader (entertainment and media practice) at PwC India.
However, the study also pointed out that the growth largely came from the escalating internet segment, which has the potential to outshine the print sector by 2014.
“We expect that entertainment content being accessed through different media, and innovation in digital content will drive the advertising spend,” said a statement by CII.
Consumers primarily spend on television subscription, film admissions and print circulation, the study noted. However, the average annual spend per capita in India is just $7, while it is $22 in China and $65 in Brazil, it said. These figures, again, pale in comparison with that of the UK ($566), US ($477) and Japan ($459).
“Working to attain the target of $100 billion in the coming years will not only benefit industry, but also create large-scale employment, and help achieve India’s goal of being a knowledge-driven economy through effective media,” said Chandrajit Banerjee, director-general, CII.
In India, internet access and gaming segments have emerged as the fastest-growing at 57 per cent and 33 per cent CAGR, respectively. Gaming, still a small contributor to the overall industry, has been growing due to the rising popularity of mobile and online and social media gaming, the study noted.
The industry, which was estimated at Rs 80,000 crore in 2011, will grow at 17 per cent compounded annual growth rate (CAGR) between 2012 and 2016, according to the ‘Indian Entertainment & Media Outlook 2012’ report.
“The potential game-changers in the industry would be rising advertising and consumer spend, infrastructure and policy support,” it said.
The Indian entertainment and media industry has been identified as the fastest growing, followed by China (14 per cent), Russia (12 per cent) and Brazil (11 per cent).
The advertising segment, which contributes about 35 per cent of revenue in the entertainment and media industry in India, is dominated by television and print that constitute about 80 per cent of the pie, the study said, pointing out that both the segments will continue to dominate the industry over the next five years.
Rising disposable incomes, coupled with macroeconomic stability, will also drive rapid growth in consumer spend in the industry, the study said.
“Increased advertising and consumer spend will take the industry to desired heights. This will be fuelled by technological innovation, leading to better quality of media content being consumed. Internet access will be a key enabler in driving the growth,” said Smita Jha, leader (entertainment and media practice) at PwC India.
However, the study also pointed out that the growth largely came from the escalating internet segment, which has the potential to outshine the print sector by 2014.
“We expect that entertainment content being accessed through different media, and innovation in digital content will drive the advertising spend,” said a statement by CII.
Consumers primarily spend on television subscription, film admissions and print circulation, the study noted. However, the average annual spend per capita in India is just $7, while it is $22 in China and $65 in Brazil, it said. These figures, again, pale in comparison with that of the UK ($566), US ($477) and Japan ($459).
“Working to attain the target of $100 billion in the coming years will not only benefit industry, but also create large-scale employment, and help achieve India’s goal of being a knowledge-driven economy through effective media,” said Chandrajit Banerjee, director-general, CII.
In India, internet access and gaming segments have emerged as the fastest-growing at 57 per cent and 33 per cent CAGR, respectively. Gaming, still a small contributor to the overall industry, has been growing due to the rising popularity of mobile and online and social media gaming, the study noted.
Indian Institute of Science makes it to Global Employability List, ranked 35th
Bengaluru: The 103-year-old Indian Institute of Science (IISc) is the only Indian institution to figure in the Global Employability List 2012. The Bangalore-based research institution , which first made it to the list in 2011, has moved up from 134 to 35.
The list, which includes top-notch institutions like Harvard, Yale, Cambridge, OxfordBSE 0.00 %, Stanford, MIT, Columbia , Princeton, Imperial College of London and Goethe-University , Frankfurt , in its top 10, was done in collaboration with French consulting firm Emerging and German institute Trendence , which specializes in recruitment. "Employers are always looking for strong skill sets from employees. Since researchers and doctoral students have strong technical skills in specialized areas, they are much sought after by employers," IISc director P Balaram, said on Thursday.
"The strength of IISc lies in its ability to recruit talented faculty and bright students from all over the country . Heterogeneity has always helped the institution in its quest for new and fresh ideas. Our students, who are brilliant , are easily employable after they complete their course," he said. Interestingly, Asian universities , particularly Chinese , are creating an eco-system to foster academic excellence — Peking University is one among four mainland Chinese varsities in the top 100.
Times View
The Indian Institute of Science, Bangalore must be congratulated for not only staying on this elite list, but actually jumping nearly a hundred places up the ranking. At the same time, we must worry about why no other Indian university makes it to the top 150 in the world in terms of the employability of their graduates. In contrast, for instance, China has four. Clearly, much more needs to be done, both in terms of investments in higher education and ensuring that the investment is well-utilised if we are not to miss the bus. Our huge population can be an asset if it is provided the right skills, if not it can become a huge problem.
The list, which includes top-notch institutions like Harvard, Yale, Cambridge, OxfordBSE 0.00 %, Stanford, MIT, Columbia , Princeton, Imperial College of London and Goethe-University , Frankfurt , in its top 10, was done in collaboration with French consulting firm Emerging and German institute Trendence , which specializes in recruitment. "Employers are always looking for strong skill sets from employees. Since researchers and doctoral students have strong technical skills in specialized areas, they are much sought after by employers," IISc director P Balaram, said on Thursday.
"The strength of IISc lies in its ability to recruit talented faculty and bright students from all over the country . Heterogeneity has always helped the institution in its quest for new and fresh ideas. Our students, who are brilliant , are easily employable after they complete their course," he said. Interestingly, Asian universities , particularly Chinese , are creating an eco-system to foster academic excellence — Peking University is one among four mainland Chinese varsities in the top 100.
Times View
The Indian Institute of Science, Bangalore must be congratulated for not only staying on this elite list, but actually jumping nearly a hundred places up the ranking. At the same time, we must worry about why no other Indian university makes it to the top 150 in the world in terms of the employability of their graduates. In contrast, for instance, China has four. Clearly, much more needs to be done, both in terms of investments in higher education and ensuring that the investment is well-utilised if we are not to miss the bus. Our huge population can be an asset if it is provided the right skills, if not it can become a huge problem.
16 States and Union Territories Sign Tripartite Agreements for Laying Digital Highways Under National Optical Fibre Network
New Delhi: The Minister of Communications & IT Sh. Kapil Sibal today called the National Optical Fibre Network (NOFN) ---a project, which would connect all the 2, 50,000 Gram Panchayats (GPs) in the country through Optical Fibre Cable (OFC) in two years—as a paradigm shift which would transform the way India works. Sh Sibal was speaking at a function in New Delhi where 13 State governments and 3 Union territories signed tripartite Memorandums of Understanding for free Right of Way (RoW) with the Central Government and Bharat Broadband Network Limited (BBNL--the SPV incorporated for execution of the project).
Calling it the ‘end of distance”, the Minister said from people reaching out to the government we have now come to the government reaching out to the people. He emphasized that the content that would be “riding” on the virtual highway would be equally important, and its success would lay on it being accessible and affordable to the common man. Sh Sibal said it is now upto the State governments to digitize all data, and make it interoperable not just within the state but also inside the country.
Sh Ashok Gehlot and Sh Vijay Bahuguna, Chief Ministers of Rajasthan and Uttarakhand respectively were among the representatives of State governments and Union Territories who signed the MoUs.
The number of Gram Panchayats covered in these states/UTs are as below.
S.No. State Name No. of Gram Panchayats
1. ANDHRA PRADESH 21,693
2. ARUNACHAL PRADESH 1,756
3. CHHATTISSGARH 9,770
4. DADRA AND NAGAR HAVELI 11
5. DAMAN AND DIU 14
6. JHARKHAND 4,423
7. KARNATAKA 5,631
8. KERALA 977
9. MADHYA PRADESH 23,024
10. MANIPUR 2,795
11. MIZORAM 776
12. PUDUCHERRY 98
13. RAJASTHAN 9,192
14. TRIPURA 1,038
15. UTTAR PRADESH 51,974
16. UTTARAKHAND 7,555
Total 140,727
In all 1,40,727 GPs will get covered by Optical Fibre Network in these States and UTs.
The Central Government, through Universal Service Obligation Fund (USOF), will fund the project while the contribution of State Government would be by providing free Right of Way (RoW) for laying OFC. The Bharat Broadband Network Ld.(BBNL) will soon commence the work in these States/UTs immediately taking OFC to Gram Panchayats and in remaining States work will be taken by BBNL as and when States are ready to sign MoU.
With the availability of NOFN at 2,50,000 Gram Panchayats, a minimum bandwidth of 100 Mbps will be available at each GP and will lead to proliferation of broadband services.
Benefits to States will be as below:
This will empower rural masses by giving them access to information, public services including those of education, health and financial inclusion.
Various applications for Panchayats for planning, management, monitoring and payments under various government schemes (e.g. MNREGA, PDS, Land Records, Birth/Death Certificates, Digital Literacy, etc.), e-Governance, education, health, employment, agriculture and commerce can be launched using this network
As access service providers like Mobile operators, Internet Service Providers, Cable TV operators, content providers etc. launch their access network and services using NOFN, it will result in creation of local employment, revenue generation and growth of GDP leading to overall prosperity of the State.
Sh Sibal also launched the portal of Bharat Broadband Network Ld. The website is www.bbnl.nic.in
Calling it the ‘end of distance”, the Minister said from people reaching out to the government we have now come to the government reaching out to the people. He emphasized that the content that would be “riding” on the virtual highway would be equally important, and its success would lay on it being accessible and affordable to the common man. Sh Sibal said it is now upto the State governments to digitize all data, and make it interoperable not just within the state but also inside the country.
Sh Ashok Gehlot and Sh Vijay Bahuguna, Chief Ministers of Rajasthan and Uttarakhand respectively were among the representatives of State governments and Union Territories who signed the MoUs.
The number of Gram Panchayats covered in these states/UTs are as below.
S.No. State Name No. of Gram Panchayats
1. ANDHRA PRADESH 21,693
2. ARUNACHAL PRADESH 1,756
3. CHHATTISSGARH 9,770
4. DADRA AND NAGAR HAVELI 11
5. DAMAN AND DIU 14
6. JHARKHAND 4,423
7. KARNATAKA 5,631
8. KERALA 977
9. MADHYA PRADESH 23,024
10. MANIPUR 2,795
11. MIZORAM 776
12. PUDUCHERRY 98
13. RAJASTHAN 9,192
14. TRIPURA 1,038
15. UTTAR PRADESH 51,974
16. UTTARAKHAND 7,555
Total 140,727
In all 1,40,727 GPs will get covered by Optical Fibre Network in these States and UTs.
The Central Government, through Universal Service Obligation Fund (USOF), will fund the project while the contribution of State Government would be by providing free Right of Way (RoW) for laying OFC. The Bharat Broadband Network Ld.(BBNL) will soon commence the work in these States/UTs immediately taking OFC to Gram Panchayats and in remaining States work will be taken by BBNL as and when States are ready to sign MoU.
With the availability of NOFN at 2,50,000 Gram Panchayats, a minimum bandwidth of 100 Mbps will be available at each GP and will lead to proliferation of broadband services.
Benefits to States will be as below:
This will empower rural masses by giving them access to information, public services including those of education, health and financial inclusion.
Various applications for Panchayats for planning, management, monitoring and payments under various government schemes (e.g. MNREGA, PDS, Land Records, Birth/Death Certificates, Digital Literacy, etc.), e-Governance, education, health, employment, agriculture and commerce can be launched using this network
As access service providers like Mobile operators, Internet Service Providers, Cable TV operators, content providers etc. launch their access network and services using NOFN, it will result in creation of local employment, revenue generation and growth of GDP leading to overall prosperity of the State.
Sh Sibal also launched the portal of Bharat Broadband Network Ld. The website is www.bbnl.nic.in
India and Spain Sign MOU on Technical Co-Operation in the Field of Railway Sector
New Delhi: Memorandum of Understanding between the Indian Railways and RENFE-Operadora and ADIF (Spanish Railways Infrastructure Manager) of Spain on technical cooperation in the field of Railway sector was signed by the Minister of Road Transport & Highways and Minister of Railways, Dr. C.P.Joshi and visiting Spain Minister of Public Works and Transport, Ms. Ana Pastor Julián, here today.
Under this MOU, both the countries are to promote cooperation and information exchange in the areas of High Speed Railway, upgradation of speed of passenger trains on existing lines, improving safety of train operations, modernization of Rolling Stock, construction and maintenance technologies for fixed infrastructure – Track, Bridges, Tunnels, OHE, Power Supply Systems, Signaling and Telecommunications and other cooperation in railway related technology developments.
Under this MOU, both the countries are to promote cooperation and information exchange in the areas of High Speed Railway, upgradation of speed of passenger trains on existing lines, improving safety of train operations, modernization of Rolling Stock, construction and maintenance technologies for fixed infrastructure – Track, Bridges, Tunnels, OHE, Power Supply Systems, Signaling and Telecommunications and other cooperation in railway related technology developments.
IBS Software Services acquires US-based hospitality company Hotel Booking Solutions
Kochi: IBS Software Services, a leading provider of IT solutions for the travel, transportation and logistic industries, has acquired Atlanta based Hotel Booking Solutions (HBSi).
IBS acquired HBSi by buying over the entire shareholding of Crosslink Capital, the San Francisco based leading private equity and venture capital firm. Crosslinks Capital with over $1.8 billion in investments in around 100 companies, holds around 96% stake in HBSi.
This multi-million dollar acquisition will bring to IBS' fold over hundred leading players in the hospitality industry including Starwood, Harrahs, Raffles, Ramada, Fairmont and Kerzner on the supply partner side as well as Expedia, Orbitz and Travelocity on the distribution partner side.
IBS has made six strategic acquisition - one in India, two in Europe and three in the USA - in its 15 year history, expanding its solution portfolio to cover travel, hospitality and aircraft engineering areas.
"Strategic acquisition of companies in the industry we operate in is a deliberate growth strategy of IBS to widen our bouquet of offerings to the travel, transportation and logistics industries and to helps us gain domain strength, expand our customer base and accelerate adoption of business innovation,'' said Mr. VK Mathews, executive chairman of The IBS Group.
HBSi is a B2B travel technology and services firm that provides distribution services to leading hotel companies and travel suppliers and has over 80 multinational hotel chains and over 30 leading distributers in its expanding client list.
IBS acquired HBSi by buying over the entire shareholding of Crosslink Capital, the San Francisco based leading private equity and venture capital firm. Crosslinks Capital with over $1.8 billion in investments in around 100 companies, holds around 96% stake in HBSi.
This multi-million dollar acquisition will bring to IBS' fold over hundred leading players in the hospitality industry including Starwood, Harrahs, Raffles, Ramada, Fairmont and Kerzner on the supply partner side as well as Expedia, Orbitz and Travelocity on the distribution partner side.
IBS has made six strategic acquisition - one in India, two in Europe and three in the USA - in its 15 year history, expanding its solution portfolio to cover travel, hospitality and aircraft engineering areas.
"Strategic acquisition of companies in the industry we operate in is a deliberate growth strategy of IBS to widen our bouquet of offerings to the travel, transportation and logistics industries and to helps us gain domain strength, expand our customer base and accelerate adoption of business innovation,'' said Mr. VK Mathews, executive chairman of The IBS Group.
HBSi is a B2B travel technology and services firm that provides distribution services to leading hotel companies and travel suppliers and has over 80 multinational hotel chains and over 30 leading distributers in its expanding client list.
Sanjiv Goenka group to pick 49.5% in Firstsource BPO for Rs 400 cr
Kolkata: RP-Sanjiv Goenka group has announced plans to acquire 49.5 per cent stake in Firstsource Solutions Ltd — an IT BPO firm — for around Rs 400 crore. Firstsource was promoted by ICICI Bank and other ICICI-group companies.
The acquisition will be made through Spen Liq Private Ltd, a wholly-owned subsidiary of RP-Sanjiv Goenka group flagship CESC Ltd. Firstsource operates in verticals such as banking and financial services, healthcare and telecommunications and media.
The BPO firm will issue 22.69 crore equity shares (of Rs 10 face value) at Rs 12.10 to Spen Liq on a preferential basis. This will offer Spen Liq over 34.5 per cent stake at around Rs 274 crore.
Share purchase
In a separate arrangement, Spen Liq will acquire five per cent stake from each of the three major shareholders — ICICI (promoter), Aranda (step-down subsidiary of Temasek) and Metavante (Fidelity arm) — in Firstsource.
This will lead to acquisition of 15 per cent of the expanded capital base at around Rs 120 crore.
Open offer
The RP-Sanjiv Goenka group also announced a mandatory open offer for acquisition of another 19.8 crore equity shares — totalling 26 per cent of its expanded capital base — at Rs 12.20 a share.
The offer may cost Spen Liq a maximum of Rs 240 crore. Firstsource shares closed at Rs 14.24, up by nearly 8 per cent at BSE on Thursday.
Business Interests
“Given the current limitations of growth opportunities in the power sector, we have been looking at entering the BPO space for a while,” Sanjiv Goenka said.
The acquisition will be made through Spen Liq Private Ltd, a wholly-owned subsidiary of RP-Sanjiv Goenka group flagship CESC Ltd. Firstsource operates in verticals such as banking and financial services, healthcare and telecommunications and media.
The BPO firm will issue 22.69 crore equity shares (of Rs 10 face value) at Rs 12.10 to Spen Liq on a preferential basis. This will offer Spen Liq over 34.5 per cent stake at around Rs 274 crore.
Share purchase
In a separate arrangement, Spen Liq will acquire five per cent stake from each of the three major shareholders — ICICI (promoter), Aranda (step-down subsidiary of Temasek) and Metavante (Fidelity arm) — in Firstsource.
This will lead to acquisition of 15 per cent of the expanded capital base at around Rs 120 crore.
Open offer
The RP-Sanjiv Goenka group also announced a mandatory open offer for acquisition of another 19.8 crore equity shares — totalling 26 per cent of its expanded capital base — at Rs 12.20 a share.
The offer may cost Spen Liq a maximum of Rs 240 crore. Firstsource shares closed at Rs 14.24, up by nearly 8 per cent at BSE on Thursday.
Business Interests
“Given the current limitations of growth opportunities in the power sector, we have been looking at entering the BPO space for a while,” Sanjiv Goenka said.
Honda Cars India begins exporting Brio to S. Africa
Mumbai: Honda Cars India intends to export 1,600 units of its hatchback Brio to the South African markets by the end of this financial year.
The passenger car manufacturer is also gearing up to launch a diesel sedan, its first in India, and next generation of its sports utility vehicle (SUV) Honda CR-V next year.
Honda Cars India Ltd (HCIL) today flagged off the first consignment of 390 units of Honda Brio to South Africa. The company had exported a total of 1,028 cars, including the City, Jazz and Accord, to the SAARC countries, in the past 14 years, and now has added Brio to the export portfolio.
“Honda Brio is the first car to be exported to South Africa by HCIL and today's consignment of 390 cars is a significant milestone in our journey. We are planning to export more than 1,600 units of Brio to South Africa and Southern African Development Community (SADC) countries by March,” said HCIL President and Chief Executive Officer Hironori Kanayama.
On the launch of diesel car, HCIL Senior Vice-President (sales and marketing) Jnaneswar Sen said it would be an entry-level sedan.
The company would then look at launching other diesel models.
HCIL would also launch its next generation Honda CR-V, which will replace the existing version.
He, however, did not divulge a specific date for the launch nor other features of both the sedan and the CR-V.
The passenger car manufacturer is also gearing up to launch a diesel sedan, its first in India, and next generation of its sports utility vehicle (SUV) Honda CR-V next year.
Honda Cars India Ltd (HCIL) today flagged off the first consignment of 390 units of Honda Brio to South Africa. The company had exported a total of 1,028 cars, including the City, Jazz and Accord, to the SAARC countries, in the past 14 years, and now has added Brio to the export portfolio.
“Honda Brio is the first car to be exported to South Africa by HCIL and today's consignment of 390 cars is a significant milestone in our journey. We are planning to export more than 1,600 units of Brio to South Africa and Southern African Development Community (SADC) countries by March,” said HCIL President and Chief Executive Officer Hironori Kanayama.
On the launch of diesel car, HCIL Senior Vice-President (sales and marketing) Jnaneswar Sen said it would be an entry-level sedan.
The company would then look at launching other diesel models.
HCIL would also launch its next generation Honda CR-V, which will replace the existing version.
He, however, did not divulge a specific date for the launch nor other features of both the sedan and the CR-V.
Cabinet nod for rail link project to connect Imphal
New Delhi: The Cabinet Committee on Infrastructure (CCI) on Thursday approved the Railway Ministry’s proposal to extend the new broad gauge rail-link from Imphal Road (Tupul) to Imphal and the updated cost of the entire project as Rs 4,444 crore.
The project, on which Rs 682 crore has been spent till March 31, 2011, will be funded 25 per cent from General Budgetary Support (GBS) for Railways and 75 per cent from the Finance Ministry. The project will be completed by March 2016.
This project will cover Imphal East, Tamenglong and Senapati districts of Manipur. This Jiribam-Imphal new line project, on completion, will provide rail connectivity to Imphal with the national mainstream. It would also make possible direct movement of freight/passenger from this region to other parts of the country.
The project, on which Rs 682 crore has been spent till March 31, 2011, will be funded 25 per cent from General Budgetary Support (GBS) for Railways and 75 per cent from the Finance Ministry. The project will be completed by March 2016.
This project will cover Imphal East, Tamenglong and Senapati districts of Manipur. This Jiribam-Imphal new line project, on completion, will provide rail connectivity to Imphal with the national mainstream. It would also make possible direct movement of freight/passenger from this region to other parts of the country.
Approval of National Policy on Electronics 2012
The Union Cabinet today approved the National Policy on Electronics 2012. The draft National Policy on Electronics was released for public consultation and it has now been finalized based on comments from various stakeholders.
India is one of the fastest growing markets of electronics in the world. There is potential to develop the Electronic System and Design and Manufacturing (ESDM) sector to meet our domestic demand as well as to use the capabilities so created to successfully export ESDM products from the country. The National Policy on Electronics aims to address the issue with the explicit goal of transforming India into a premier ESDM hub.
The strategies include setting up of a National Electronics Mission with industry participation and renaming the Department of Information Technology as Department of Electronics and Information Technology (Deity). The Department has since been renamed on February 26, 2012.
The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips creating a more cyber secure ecosystem in the country. It will enable India to tap the great economic potential that this knowledge sector offers. The increased development and manufacturing in the sector will lead to greater economic growth through more manufacturing and consequently greater employment in the sector.
The Policy envisages that a turnover of USD 400 billion will create an employment for two million people.
ESDM is of strategic importance as well. Not only in internal security and defence, the pervasive deployment of electronics in civilian domains such as telecom, power, railways, civil aviation, etc. can have serious consequences of disruption of service. This renders tremendous strategic importance to the sector. The country, therefore, cannot be totally dependent on imported electronic components and products.
The key objectives of the Policy are:
To create an eco-system for a globally competitive Electronic System Design and Manufacturing (ESDM) sector in the country to achieve a turnover of about USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million people at various levels.
To build on the emerging chip design and embedded software industry to achieve global leadership in Very Large Scale Integration (VLSI), chip design and other frontier technical areas and to achieve a turnover of USD 55 billion by 2020.
To build a strong supply chain of raw materials, parts and electronic components to raise the indigenous availability of these inputs from the present 20-25 per cent to over 60 per cent by 2020.
To increase the export in ESDM sector from USD 5.5 billion to USD 80 billion by 2020.
To significantly enhance availability of skilled manpower in the ESDM sector. Special focus for augmenting postgraduate education and to produce about 2500 PhDs annually by 2020.
To create an institutional mechanism for developing and mandating standards and certification for electronic products and services to strengthen quality assessment infrastructure nationwide.
To develop an appropriate security ecosystem in ESDM.
To create long-term partnerships between ESDM and strategic and core infrastructure sectors - Defence, Atomic Energy, Space, Railways, Power, Telecommunications, etc.
To become a global leader in creating Intellectual Property (IP) in the ESDM sector by increasing fund flow for R&D, seed capital and venture capital for start-ups in the ESDM and nanoelectronics sectors.
To develop core competencies in strategic and core infrastructure sectors like telecommunications, automotive, avionics, industrial, medical, solar, Information and Broadcasting, Railways, etc through use of ESDM in these sectors.
To use technology to develop electronic products catering to domestic needs, including rural needs and conditions, as well as international needs at affordable price points.
To become a global leader in the Electronic Manufacturing Services (EMS) segment by promoting progressive higher value addition in manufacturing and product development.
To expedite adoption of best practices in e-waste management.
To source, stockpile and promote indigenous exploration and mining of rare earth metals required for manufacture of electronic components.
To achieve these objectives, the policy proposes the following strategies:
Creating eco-system for globally competitive ESDM sector: The strategies include provision of fiscal incentives for investment, setting up of electronic manufacturing clusters, preferential market access to domestically manufactured electronic products, setting up of semiconductor wafer fabrication facilities, industry friendly and stable tax regime. Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs).
Promotion of Exports: The strategies include aggressive marketing of India as an investment destination and providing incentives for export,
Human Resource Development: The strategies include involvement of private sector, universities and institutions of learning for scaling up of requisite capacities at all levels for the projected manpower demand. A specialized Institute for semiconductor chip design is also proposed.
Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards.
Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous appropriate products through frontier technology/product oriented research, testing and validation of security of products.
Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products.
Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nanoelectronics. The strategy includes creation of an Electronic Development Fund.
Electronics in other sectors: The strategy includes supporting and : developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys.
Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e-waste handling policies.
Background:
The Electronics industry reported at USD 1.75 trillion is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2.4 trillion by 2020. The demand in the Indian market was USD 45 billion in 2008-09 and is expected to reach USD 400 billion by 2020. Domestic demand is expected to be driven by growth in income levels leading to higher off-take of electronics products, automation demands of corporate sector and the government's focus on e-governance. The domestic production in 2008-09 was about USD 20 billion. However, the actual value-addition in the domestically produced electronic product is very low, ranging between 5 to 10 percent in most cases. At the current rate of growth, domestic production can cater to a demand of USD 100 billion in 2020 as against a demand of USD 400 billion and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly USD 300 billion by 2020. Unless the situation is corrected, it is likely that by 2020, electronics import may far exceed oil imports. This fact goes unnoticed because electronics, as a "meta resource" forms a significant part of all machines and equipment imported, which are classified in their final sectoral forms, for example, automobiles, aviation, health equipment, media and broadcasting, defence armaments, etc.
Electronics is characterized by high velocity of technological change. Consequently the life cycle of products is declining. As a result, the value of design and development in the product has increased quite significantly. Given India's growing strength in chip design and embedded software, the increasing importance of design in product development has potential to make India a favoured destination for ESDM.
Electronic components, which are the basis of an electronic product, are low volume-low weight, cheap and easy to transport across the globe. Moreover, under the Information Technology Agreement-1 (ITA-1) of the World Trade Organization (WTO), which came into force in 1997, a large number of electronic components and products are bound with zero tariffs making trade unrestricted across international borders. Under the Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with various countries, the import of electronics hardware from these countries is allowed either at zero duty or at a duty which is lower than the normal duty rate.
India is one of the fastest growing markets of electronics in the world. There is potential to develop the Electronic System and Design and Manufacturing (ESDM) sector to meet our domestic demand as well as to use the capabilities so created to successfully export ESDM products from the country. The National Policy on Electronics aims to address the issue with the explicit goal of transforming India into a premier ESDM hub.
The strategies include setting up of a National Electronics Mission with industry participation and renaming the Department of Information Technology as Department of Electronics and Information Technology (Deity). The Department has since been renamed on February 26, 2012.
The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips creating a more cyber secure ecosystem in the country. It will enable India to tap the great economic potential that this knowledge sector offers. The increased development and manufacturing in the sector will lead to greater economic growth through more manufacturing and consequently greater employment in the sector.
The Policy envisages that a turnover of USD 400 billion will create an employment for two million people.
ESDM is of strategic importance as well. Not only in internal security and defence, the pervasive deployment of electronics in civilian domains such as telecom, power, railways, civil aviation, etc. can have serious consequences of disruption of service. This renders tremendous strategic importance to the sector. The country, therefore, cannot be totally dependent on imported electronic components and products.
The key objectives of the Policy are:
To create an eco-system for a globally competitive Electronic System Design and Manufacturing (ESDM) sector in the country to achieve a turnover of about USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million people at various levels.
To build on the emerging chip design and embedded software industry to achieve global leadership in Very Large Scale Integration (VLSI), chip design and other frontier technical areas and to achieve a turnover of USD 55 billion by 2020.
To build a strong supply chain of raw materials, parts and electronic components to raise the indigenous availability of these inputs from the present 20-25 per cent to over 60 per cent by 2020.
To increase the export in ESDM sector from USD 5.5 billion to USD 80 billion by 2020.
To significantly enhance availability of skilled manpower in the ESDM sector. Special focus for augmenting postgraduate education and to produce about 2500 PhDs annually by 2020.
To create an institutional mechanism for developing and mandating standards and certification for electronic products and services to strengthen quality assessment infrastructure nationwide.
To develop an appropriate security ecosystem in ESDM.
To create long-term partnerships between ESDM and strategic and core infrastructure sectors - Defence, Atomic Energy, Space, Railways, Power, Telecommunications, etc.
To become a global leader in creating Intellectual Property (IP) in the ESDM sector by increasing fund flow for R&D, seed capital and venture capital for start-ups in the ESDM and nanoelectronics sectors.
To develop core competencies in strategic and core infrastructure sectors like telecommunications, automotive, avionics, industrial, medical, solar, Information and Broadcasting, Railways, etc through use of ESDM in these sectors.
To use technology to develop electronic products catering to domestic needs, including rural needs and conditions, as well as international needs at affordable price points.
To become a global leader in the Electronic Manufacturing Services (EMS) segment by promoting progressive higher value addition in manufacturing and product development.
To expedite adoption of best practices in e-waste management.
To source, stockpile and promote indigenous exploration and mining of rare earth metals required for manufacture of electronic components.
To achieve these objectives, the policy proposes the following strategies:
Creating eco-system for globally competitive ESDM sector: The strategies include provision of fiscal incentives for investment, setting up of electronic manufacturing clusters, preferential market access to domestically manufactured electronic products, setting up of semiconductor wafer fabrication facilities, industry friendly and stable tax regime. Based on Cabinet approval, a high level Empowered committee has been constituted to identify and shortlist technology and investors for setting up two semiconductor wafer manufacturing fabrication facilities. Based on another Cabinet approval a policy for providing preference to domestically manufactured electronic goods has been announced. Separate proposals have also been considered by the Cabinet for approval of Modified Special Incentive Package for the ESDM Sector and for setting up of Electronics Manufacturing Clusters (EMCs).
Promotion of Exports: The strategies include aggressive marketing of India as an investment destination and providing incentives for export,
Human Resource Development: The strategies include involvement of private sector, universities and institutions of learning for scaling up of requisite capacities at all levels for the projected manpower demand. A specialized Institute for semiconductor chip design is also proposed.
Developing and mandating standards to curb inflow of sub-standard and unsafe electronic products by mandating technical and safety standards which conform to international standards.
Cyber security: To create a complete secure cyber eco-system in the country, through suitable design and development of indigenous appropriate products through frontier technology/product oriented research, testing and validation of security of products.
Strategic electronics: The strategies include creating long-term partnerships between domestic ESDM industry and strategic sectors for sourcing products domestically and providing Defense Offset obligations for electronic procurements through ESDM products.
Creating ecosystem for vibrant innovation and R&D in the ESDM sector including nanoelectronics. The strategy includes creation of an Electronic Development Fund.
Electronics in other sectors: The strategy includes supporting and : developing expertise in the electronics in the following sectors of economy: automotive, avionics, Light Emitting Diodes (LEDs), Industrial, medical, solar photovoltaics, Information and Broadcasting, Telecommunications, Railways, Intelligent Transport Systems, and Games and Toys.
Handling e-waste: The strategy includes various initiatives to facilitate environment friendly e-waste handling policies.
Background:
The Electronics industry reported at USD 1.75 trillion is the largest and fastest growing manufacturing industry in the world. It is expected to reach USD 2.4 trillion by 2020. The demand in the Indian market was USD 45 billion in 2008-09 and is expected to reach USD 400 billion by 2020. Domestic demand is expected to be driven by growth in income levels leading to higher off-take of electronics products, automation demands of corporate sector and the government's focus on e-governance. The domestic production in 2008-09 was about USD 20 billion. However, the actual value-addition in the domestically produced electronic product is very low, ranging between 5 to 10 percent in most cases. At the current rate of growth, domestic production can cater to a demand of USD 100 billion in 2020 as against a demand of USD 400 billion and the rest would have to be met by imports. This aggregates to a demand supply gap of nearly USD 300 billion by 2020. Unless the situation is corrected, it is likely that by 2020, electronics import may far exceed oil imports. This fact goes unnoticed because electronics, as a "meta resource" forms a significant part of all machines and equipment imported, which are classified in their final sectoral forms, for example, automobiles, aviation, health equipment, media and broadcasting, defence armaments, etc.
Electronics is characterized by high velocity of technological change. Consequently the life cycle of products is declining. As a result, the value of design and development in the product has increased quite significantly. Given India's growing strength in chip design and embedded software, the increasing importance of design in product development has potential to make India a favoured destination for ESDM.
Electronic components, which are the basis of an electronic product, are low volume-low weight, cheap and easy to transport across the globe. Moreover, under the Information Technology Agreement-1 (ITA-1) of the World Trade Organization (WTO), which came into force in 1997, a large number of electronic components and products are bound with zero tariffs making trade unrestricted across international borders. Under the Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with various countries, the import of electronics hardware from these countries is allowed either at zero duty or at a duty which is lower than the normal duty rate.
Thursday, October 25, 2012
Genpact signs deal with Diageo to offer FandA services
Bengaluru: Genpact, the business process outsourcing services provider has bagged a contract from Diageo, the world’s biggest distiller. This is to provide the company financial and accounting processing services, by establishing a near-shore shared services centre.
The company did not disclose the financial details of the contract. As part of the deal, Genpact has set up a shared services centre in Bogota, the capital of Colombia, where the employees of both the companies will work alongside.
The centre will initially house 65 employees and then gradually be ramped up to 200 by the end of 2013. According to Diageo Commercial Director Gregorio Gutierrez, by developing the shared services centre model in partnership with Genpact, the company will be able to consolidate and improve its F&A functions in Latin America. This will enable the company to focus on its core business.
The shared services centre is located in the Bogota Free Trade Zone, in the Zona Franca business park.
“Genpact and Diageo are partnering to optimise Diageo’s comprehensive F&A operations and consolidating these operations into the new centre in Bogotá, which to date have been managed across multiple Latin American countries,” a joint statement from both the companies said.
The company did not disclose the financial details of the contract. As part of the deal, Genpact has set up a shared services centre in Bogota, the capital of Colombia, where the employees of both the companies will work alongside.
The centre will initially house 65 employees and then gradually be ramped up to 200 by the end of 2013. According to Diageo Commercial Director Gregorio Gutierrez, by developing the shared services centre model in partnership with Genpact, the company will be able to consolidate and improve its F&A functions in Latin America. This will enable the company to focus on its core business.
The shared services centre is located in the Bogota Free Trade Zone, in the Zona Franca business park.
“Genpact and Diageo are partnering to optimise Diageo’s comprehensive F&A operations and consolidating these operations into the new centre in Bogotá, which to date have been managed across multiple Latin American countries,” a joint statement from both the companies said.
Refinery expansion can transform Kochi into petrochemical hub
Mumbai: BPCL is undertaking a major expansion of its Kochi Refinery at a cost of over Rs 14,000 crore. Along with this, the corporation is also setting up a Rs 4,500-crore petrochemical complex jointly with the LG Chem of South Korea.
According to John Minu Mathew, Executive Director, Kochi Refinery, these projects could pave the way for development of a host of downstream units in and around Kochi and other parts of Kerala.
In a conversation with Business Line, Mathew said the expansion is also aimed at improving the quality of the fuels produced by the refinery as auto fuels in Kerala is expected to be Euro IV-compliant by 2015.
On refinery expansion
The expansion consists of three different sets of projects. I would like to call them three envelopes with each envelope consisting of different units.
The first one in envelope A is a new crude unit: We are expanding the refinery capacity from 9.5 million tonnes a year to 15.5 mt.
In fact, we are setting up a 10.5-mt a year crude unit. This is because our existing 4.5 million crude unit set up in 1966 is not so fuel-efficient. We will discontinue operation of this unit and put up a modern 10.5 million unit. So the net addition would be 6 million.
Second unit in envelope A will be a fluid catalytic cracking unit (FCCU). This petrochemical unit can produce a significant quantity of propylene. Currently, we are producing about 50,000 tonnes a year and after the expansion our propylene capacity will go up to five lakh tonnes a year. This will be a major addition to our product portfolio.
The third is the delayed coker unit. This is meant for upgrading the bottom products. We would be producing about 1.5 million tonnes of petroleum coke from this unit.
Besides, auto fuels, we will also produce LPG, the production capacity of which will more than double from the present five lakh tonnes a year to 11 lt.
The first set of projects in envelope A, estimated to cost Rs 14,250 crore, is scheduled to be completed by fiscal 2015-16 and will be funded by BPCL.
On Euro compliance
This expansion is also aimed at improving the quality of the motor fuels we produce. By 2015, the auto fuels used in Kerala is expected to be Euro IV compliant. By then, all our auto fuels will also be meeting Euro IV and partly Euro V specifications.
On Petrochemical JV
In the Envelope B, the main project will be a joint venture petrochemicals complex, estimated at Rs 4,500 crore. We have signed an MoU with LG Chemicals of South Korea. It will be located near our exiting refinery. Our refinery will supply propylene for the joint venture through a pipeline. B
On downstream units
In the envelope C, there will be units for producing down stream products.
Using our products as inputs, they can manufacture at least 25 different products.
These units are expected to come up in the petrochemical park being proposed by KSIDC.
Petroleum coke can be used by cement and power plants as fuel.
It is possible to put up a 400-MW power plant using petroleum coke from our unit as fuel and the cost of production of power will be attractive.
We will produce about 1,000 tonnes per day of sulphur. This can be used for making fertilisers.
We are in discussion with FACT for supplying this. Right now, they are importing more or less the same quantity of sulphur. We would be able to supply it through pipeline as molten sulphur.
On State support
The State Government has agreed to give fiscal concessions for our projects through deferment/waiver of VAT, CST and Works Contract Tax, which make our project financially viable.
BPCL’s major foray into petrochemicals could transform Kochi into a petrochemical hub with the setting up of various downstream/ancillary units.
According to John Minu Mathew, Executive Director, Kochi Refinery, these projects could pave the way for development of a host of downstream units in and around Kochi and other parts of Kerala.
In a conversation with Business Line, Mathew said the expansion is also aimed at improving the quality of the fuels produced by the refinery as auto fuels in Kerala is expected to be Euro IV-compliant by 2015.
On refinery expansion
The expansion consists of three different sets of projects. I would like to call them three envelopes with each envelope consisting of different units.
The first one in envelope A is a new crude unit: We are expanding the refinery capacity from 9.5 million tonnes a year to 15.5 mt.
In fact, we are setting up a 10.5-mt a year crude unit. This is because our existing 4.5 million crude unit set up in 1966 is not so fuel-efficient. We will discontinue operation of this unit and put up a modern 10.5 million unit. So the net addition would be 6 million.
Second unit in envelope A will be a fluid catalytic cracking unit (FCCU). This petrochemical unit can produce a significant quantity of propylene. Currently, we are producing about 50,000 tonnes a year and after the expansion our propylene capacity will go up to five lakh tonnes a year. This will be a major addition to our product portfolio.
The third is the delayed coker unit. This is meant for upgrading the bottom products. We would be producing about 1.5 million tonnes of petroleum coke from this unit.
Besides, auto fuels, we will also produce LPG, the production capacity of which will more than double from the present five lakh tonnes a year to 11 lt.
The first set of projects in envelope A, estimated to cost Rs 14,250 crore, is scheduled to be completed by fiscal 2015-16 and will be funded by BPCL.
On Euro compliance
This expansion is also aimed at improving the quality of the motor fuels we produce. By 2015, the auto fuels used in Kerala is expected to be Euro IV compliant. By then, all our auto fuels will also be meeting Euro IV and partly Euro V specifications.
On Petrochemical JV
In the Envelope B, the main project will be a joint venture petrochemicals complex, estimated at Rs 4,500 crore. We have signed an MoU with LG Chemicals of South Korea. It will be located near our exiting refinery. Our refinery will supply propylene for the joint venture through a pipeline. B
On downstream units
In the envelope C, there will be units for producing down stream products.
Using our products as inputs, they can manufacture at least 25 different products.
These units are expected to come up in the petrochemical park being proposed by KSIDC.
Petroleum coke can be used by cement and power plants as fuel.
It is possible to put up a 400-MW power plant using petroleum coke from our unit as fuel and the cost of production of power will be attractive.
We will produce about 1,000 tonnes per day of sulphur. This can be used for making fertilisers.
We are in discussion with FACT for supplying this. Right now, they are importing more or less the same quantity of sulphur. We would be able to supply it through pipeline as molten sulphur.
On State support
The State Government has agreed to give fiscal concessions for our projects through deferment/waiver of VAT, CST and Works Contract Tax, which make our project financially viable.
BPCL’s major foray into petrochemicals could transform Kochi into a petrochemical hub with the setting up of various downstream/ancillary units.
Plans worth Rs 392 cr cleared in Bengal, Jharkhand, U.P.
New Delhi: Proposals worth over Rs 392 crore for 29 minority districts in Uttar Pradesh, West Bengal and Jharkhand have been approved by the Empowered Committee for multi-sectoral development programme in the Ministry of Minority Affairs.
Of the 29 district plans that were approved for the 12 {+t} {+h} Plan period, 16 were from Uttar Pradesh, nine from West Bengal and four from Jharkhand, according to an official release here.
The minority districts in U.P. that stand to gain are Pilibhit, Moradabad, Sambhal, Muzaffarnagar, Shamli, Balrampur, Barabanki, Bareilly, Bijnor, Budaun, Lucknow, Rampur, Shahjahanpur, Shrawasti, Siddharth Nagar, J.P. Nagar, Meerut, Ghaziabad and Hapur.
In West Bengal, the plans were approved for Birbhum, Burdwan, Murshidabad, Nadia, Uttar Dinajpur, South 24 Parganas, Cooch Behar, North 24 Parganas and Dakshin Dinajpur. In Jharkhand, the districts whose plans were cleared are Sahibganj, Simdega, Pakur and Khunti.
The two districts whose proposals were not approved are Bahraich from U.P. and Sirsa from Haryana.
Of the 29 district plans that were approved for the 12 {+t} {+h} Plan period, 16 were from Uttar Pradesh, nine from West Bengal and four from Jharkhand, according to an official release here.
The minority districts in U.P. that stand to gain are Pilibhit, Moradabad, Sambhal, Muzaffarnagar, Shamli, Balrampur, Barabanki, Bareilly, Bijnor, Budaun, Lucknow, Rampur, Shahjahanpur, Shrawasti, Siddharth Nagar, J.P. Nagar, Meerut, Ghaziabad and Hapur.
In West Bengal, the plans were approved for Birbhum, Burdwan, Murshidabad, Nadia, Uttar Dinajpur, South 24 Parganas, Cooch Behar, North 24 Parganas and Dakshin Dinajpur. In Jharkhand, the districts whose plans were cleared are Sahibganj, Simdega, Pakur and Khunti.
The two districts whose proposals were not approved are Bahraich from U.P. and Sirsa from Haryana.
Six Indian energy firms in Platts’ top 50 global rankings
New Delhi: Indian firms have pride of place at the 2012 Platts Top 250 Global Energy Company RankingsTM.
Of the 12 Indian companies represented in the 250, six are have also made to the list of top 50 fastest growing companies.
All eyes were on China, India and the wider Asia-Pacific region when it came to rapid financial growth and fast rising energy companies. A statement said that 70 companies from the region were in the spotlight when the 2012 Platts 250 Global Energy Companies Rankings were released in Singapore on Tuesday.
According to Platts, Cairn India took the top slot as the fastest-growing company not just in Asia but the world. With a 119.8 per cent three-year compounded growth rate (CGR), Cairn India was far ahead in the field.
The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset worth, revenues, profits and return on invested capital (ROIC).
Indian companies surged ahead in both the independent power producers (IPP) and gas utility categories, with NTPC Ltd and GAIL (India) topping their respective regional segments, Platts ranking showed.
A surprise entry at number two in ROIC rankings was Coal India Ltd with 35.3 per cent, it said. A new entrant to the rankings in 2010, when the company listed, Coal India has posted strong returns on invested capital in both years, an achievement given the challenges it faces, Platts said
China continues to grow in the energy business with 23 Chinese companies on the 2012 roster, giving it more companies in the Top 250 than any other country, except the US.
PetroChina Company Ltd took over the 9th position and China Petroleum & Chemical Corp acquired the 12th position in the global Top 250 list.
However, in an East-West comparison, Western majors still reign the rankings. Western companies took all top 10 spots on the 2012 list, except for one – ninth place – which went to PetroChina Co Ltd.
ExxonMobil retained the number one spot of the Top 250 roster for the eighth consecutive year. Anglo-Dutch major Royal Dutch Shell moved up from sixth position to second, displacing US major Chevron to third. ConocoPhillips dropped one place from seventh to eighth.
Of all the Indian companies in the top 250, Power Grid Corp improved its overall ranking, rising from 232 {+n} {+d} in 2010 to 172 {+n} {+d} in 2011. Other significant moves include a rise of 21 places for power producer NHPC Ltd to 195 {+t} {+h} {+.}
Among electric utilities, Reliance Infrastructure Ltd gained 17 places to 215 {+t} {+h}.
“India’s enormous growth in energy demand has led to its rise as the emerging energy leader on the global front,” said Vandana Hari, Asia Editorial Director, Platts. “Although these represent the bright spots for financial performance in 2011, 2012 may prove more challenging for India’s power generators,” she added. richa.mishra
Of the 12 Indian companies represented in the 250, six are have also made to the list of top 50 fastest growing companies.
All eyes were on China, India and the wider Asia-Pacific region when it came to rapid financial growth and fast rising energy companies. A statement said that 70 companies from the region were in the spotlight when the 2012 Platts 250 Global Energy Companies Rankings were released in Singapore on Tuesday.
According to Platts, Cairn India took the top slot as the fastest-growing company not just in Asia but the world. With a 119.8 per cent three-year compounded growth rate (CGR), Cairn India was far ahead in the field.
The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset worth, revenues, profits and return on invested capital (ROIC).
Indian companies surged ahead in both the independent power producers (IPP) and gas utility categories, with NTPC Ltd and GAIL (India) topping their respective regional segments, Platts ranking showed.
A surprise entry at number two in ROIC rankings was Coal India Ltd with 35.3 per cent, it said. A new entrant to the rankings in 2010, when the company listed, Coal India has posted strong returns on invested capital in both years, an achievement given the challenges it faces, Platts said
China continues to grow in the energy business with 23 Chinese companies on the 2012 roster, giving it more companies in the Top 250 than any other country, except the US.
PetroChina Company Ltd took over the 9th position and China Petroleum & Chemical Corp acquired the 12th position in the global Top 250 list.
However, in an East-West comparison, Western majors still reign the rankings. Western companies took all top 10 spots on the 2012 list, except for one – ninth place – which went to PetroChina Co Ltd.
ExxonMobil retained the number one spot of the Top 250 roster for the eighth consecutive year. Anglo-Dutch major Royal Dutch Shell moved up from sixth position to second, displacing US major Chevron to third. ConocoPhillips dropped one place from seventh to eighth.
Of all the Indian companies in the top 250, Power Grid Corp improved its overall ranking, rising from 232 {+n} {+d} in 2010 to 172 {+n} {+d} in 2011. Other significant moves include a rise of 21 places for power producer NHPC Ltd to 195 {+t} {+h} {+.}
Among electric utilities, Reliance Infrastructure Ltd gained 17 places to 215 {+t} {+h}.
“India’s enormous growth in energy demand has led to its rise as the emerging energy leader on the global front,” said Vandana Hari, Asia Editorial Director, Platts. “Although these represent the bright spots for financial performance in 2011, 2012 may prove more challenging for India’s power generators,” she added. richa.mishra
India seeks Israeli expertise in renewable energy sector
Mumbai: Almost 12 per cent of the energy generated in India is through renewable sources, comprising small hydro, bio-mass, wind and solar power. Now, the Government is keen that electricity produced from large hydro should be included in this category so that the share of renewables in the overall energy mix rises to about 31 per cent, stressed Gireesh Pradhan, Secretary, Ministry of New and Renewable Energy.
He was addressing officials from about 50 Israeli renewable energy companies and members of the Federation of Israeli Chambers of Commerce in Tel Aviv, on his maiden visit to the country.
At the meet, with representatives from both the Indian and Israeli Governments, India has sought Israel’s expertise in the renewable energy sector to meet its ambitious target of 30,000 MW of power over the next five years.
Stating that 40 per cent of the Indian population does not have access to energy, Pradhan spoke about India’s ambitious plans to generate another 30,000 MW of grid-connected projects by 2017, which would take the country to 55,000 MW from renewable sources of energy.
He was addressing officials from about 50 Israeli renewable energy companies and members of the Federation of Israeli Chambers of Commerce in Tel Aviv, on his maiden visit to the country.
At the meet, with representatives from both the Indian and Israeli Governments, India has sought Israel’s expertise in the renewable energy sector to meet its ambitious target of 30,000 MW of power over the next five years.
Stating that 40 per cent of the Indian population does not have access to energy, Pradhan spoke about India’s ambitious plans to generate another 30,000 MW of grid-connected projects by 2017, which would take the country to 55,000 MW from renewable sources of energy.
Wednesday, October 24, 2012
Sri City to set up new cluster for Japanese SMEs
Chennai: South India’s largest special economic zone (SEZ), Sri City, is planning to set up a new cluster that will accommodate Japanese small and medium enterprises (SMEs). It is also setting up ready-built factories (RBF), which will help these companies bring down capital costs and get their businesses off the ground quickly.
Sri City Managing Director Ravindra Sannareddy said the concept is similar to the plug-and-play concept adopted by the IT (information technology) industry, where an office building is developed complete with all infrastructure, so that the occupants can start their businesses from day one.
The RBFs will ensure quicker delivery time, fewer approvals, minimal paper work, adequate power and water. This will help MSMEs (micro, small and medium enterprises) reduce capital costs, since RBFs can be leased on payment of monthly rentals, said Shinya Fujii, director general, Japan External Trade Organisation (Jetro), Chennai.
Sannareddy said an entrepreneur starting a business with a capital of Rs 2 crore has to invest half of the money in machinery, people and raw material, and the remainder in buying land and meeting the construction costs. This will increase his debt burden and the outgo on interest. Now, the investment in setting up the factory will be saved, and can be pumped back into the business, he noted.
Ravi Menon, CEO, Premium Ingredients — a Spanish company that plans to invest Rs 30 crore in a facility to manufacture 2,000 tonnes of food ingredients per year — said a major advantage of this model is it offers flexibility in the event that a company wants to scale up or scale down its operations. Besides, it does away with the need to invest in land, leaving companies free to focus on operations. Sri City also secures all regulatory approvals.
The RBFs will be built in three different sizes — 5,000, 10,000 and 20,000 sq ft. In the first phase, the company is planning to build two RBFs. When demand increases, it plans to build 200,000 sq ft across 20 acres of land, which can accommodate up to 40 units. The company will invest around Rs 1 crore to set up each RBF, said Sannareddy.
He said he had targeted Japanese companies because Tamil Nadu is becoming a hub for automobile majors, and many Japanese suppliers have shown interest in the SEZ. Besides, Sri City has a Japanese enclave established in 2010 and currently has 14 Japanese customers with three companies of the Kobelco group (part of Kobe Steel), and other companies such as Metal One, NHK Springs, Unicharm, Piolax, AISAN and Kusakabe. The majority of the Japanese companies are in the engineering and auto components sector.
“Over 150 acres in the 300-acre SEZ has been allocated to existing Japanese customers and we plan to increase the size of the enclave to 500 acres to meet the increasing demand,” Sannareddy added. Some of the SMEs that have shown interest in the SEZ are from light engineering and toy manufacturing, among others, said Sannareddy.
Sri City is a private sector multi-product SEZ with a Domestic Tariff Zone (DTZ) and a Free Trade and Warehousing Zone (FTWZ) built in functional partnership with the government of Andhra Pradesh. The SEZ is strategically located on the border of Tamil Nadu and Andhra Pradesh, and houses around 80 companies from 23 countries, according to Sri City.
Sri City Managing Director Ravindra Sannareddy said the concept is similar to the plug-and-play concept adopted by the IT (information technology) industry, where an office building is developed complete with all infrastructure, so that the occupants can start their businesses from day one.
The RBFs will ensure quicker delivery time, fewer approvals, minimal paper work, adequate power and water. This will help MSMEs (micro, small and medium enterprises) reduce capital costs, since RBFs can be leased on payment of monthly rentals, said Shinya Fujii, director general, Japan External Trade Organisation (Jetro), Chennai.
Sannareddy said an entrepreneur starting a business with a capital of Rs 2 crore has to invest half of the money in machinery, people and raw material, and the remainder in buying land and meeting the construction costs. This will increase his debt burden and the outgo on interest. Now, the investment in setting up the factory will be saved, and can be pumped back into the business, he noted.
Ravi Menon, CEO, Premium Ingredients — a Spanish company that plans to invest Rs 30 crore in a facility to manufacture 2,000 tonnes of food ingredients per year — said a major advantage of this model is it offers flexibility in the event that a company wants to scale up or scale down its operations. Besides, it does away with the need to invest in land, leaving companies free to focus on operations. Sri City also secures all regulatory approvals.
The RBFs will be built in three different sizes — 5,000, 10,000 and 20,000 sq ft. In the first phase, the company is planning to build two RBFs. When demand increases, it plans to build 200,000 sq ft across 20 acres of land, which can accommodate up to 40 units. The company will invest around Rs 1 crore to set up each RBF, said Sannareddy.
He said he had targeted Japanese companies because Tamil Nadu is becoming a hub for automobile majors, and many Japanese suppliers have shown interest in the SEZ. Besides, Sri City has a Japanese enclave established in 2010 and currently has 14 Japanese customers with three companies of the Kobelco group (part of Kobe Steel), and other companies such as Metal One, NHK Springs, Unicharm, Piolax, AISAN and Kusakabe. The majority of the Japanese companies are in the engineering and auto components sector.
“Over 150 acres in the 300-acre SEZ has been allocated to existing Japanese customers and we plan to increase the size of the enclave to 500 acres to meet the increasing demand,” Sannareddy added. Some of the SMEs that have shown interest in the SEZ are from light engineering and toy manufacturing, among others, said Sannareddy.
Sri City is a private sector multi-product SEZ with a Domestic Tariff Zone (DTZ) and a Free Trade and Warehousing Zone (FTWZ) built in functional partnership with the government of Andhra Pradesh. The SEZ is strategically located on the border of Tamil Nadu and Andhra Pradesh, and houses around 80 companies from 23 countries, according to Sri City.
Suzlon gets contract in Romania
Pune: Wind energy business company Suzlon Group has won a contract with P E Deus Ex SRL., a project company (SPV) of WSB International GmbH, to deliver eight wind turbines to Romania. The contract was concluded by group subsidiary REpower Systems SE.
The REpower 3.2M114 turbines, each with a rated power of 3.2 megawatts (MW), a hub height of 93 metres and a rotor diameter of 114 metres, are destined for a wind farm project near Margineni (Neamt county), Romania.
REpower has already concluded several contracts for projects in Poland and the Czech Republic with the parent company and owner, WSB Neue Energien GmbH. The wind farm is set to be constructed and commissioned by autumn 2013.
The wind farm in north-east Romania and the launch of the wholly owned subsidiary mark REpower s entry into the Romanian market. We are pleased to be working with WSB International GmbH as an experienced partner to implement our very first project in Romania, says Jan Gasche, managing director of REpower Systems DTE Romania SRL. The Romanian market boasts tremendous potential that we want to take advantage of for REpower in the coming years, says Gasche.
The REpower 3.2M114 turbines, each with a rated power of 3.2 megawatts (MW), a hub height of 93 metres and a rotor diameter of 114 metres, are destined for a wind farm project near Margineni (Neamt county), Romania.
REpower has already concluded several contracts for projects in Poland and the Czech Republic with the parent company and owner, WSB Neue Energien GmbH. The wind farm is set to be constructed and commissioned by autumn 2013.
The wind farm in north-east Romania and the launch of the wholly owned subsidiary mark REpower s entry into the Romanian market. We are pleased to be working with WSB International GmbH as an experienced partner to implement our very first project in Romania, says Jan Gasche, managing director of REpower Systems DTE Romania SRL. The Romanian market boasts tremendous potential that we want to take advantage of for REpower in the coming years, says Gasche.
New textile policy brings in Rs 3,800 cr investment
Mumbai: The textile sector is on the upswing in Maharashtra due to the new textile policy. Since April, the State has managed to attract Rs 3,834 crore in investments in 411 new textile projects, said State Textile Minister Arif Naseem Khan on Monday.
Addressing the media after reviewing the process of policy implementation, Khan said that the new projects would provide about 30,000 jobs in the State. Most of the investment has happened in cotton spinning and ginning units. Textile companies are keen to set up units in Vidarbha, Marathwada and the Khandesh due to the ready supply of cotton, he said.
“Due to the policy, the sector is likely to get Rs 40,000 crore investment in the next five years and generate employment for 11 lakh people,” Khan said.
Khan said that the policy was not a single-window policy but a ‘zero-window policy,’ in which projects would not come to the Government for clearance,
The due diligence is done by banks. If a company manages to get its loan sanctioned under the Technology Upgradation Fund Scheme from banks, then it is eligible for subsidy, he said.
The Union Government initiated the Scheme in 1999, and it has attracted over Rs 4 lakh crore investments in the sector, as of date.
Textile Secretary Sunil Porwal said that all the 411 projects have achieved financial closure. For the Rs 3,834 crore investments, about Rs 400 crore will be the subsidy outgo spread over seven years.
The policy has been attracting investment because of the capital and interest subsidy component built into the scheme. Due to the zero-window policy, clearance is quick.
Khan also added that 18 spinning mills are keen to set up their units in the State, which would attract Rs 2,000 crore in investments. However, since they don’t fit in the Scheme, their projects are awaiting approval from banks, he said.
Addressing the media after reviewing the process of policy implementation, Khan said that the new projects would provide about 30,000 jobs in the State. Most of the investment has happened in cotton spinning and ginning units. Textile companies are keen to set up units in Vidarbha, Marathwada and the Khandesh due to the ready supply of cotton, he said.
“Due to the policy, the sector is likely to get Rs 40,000 crore investment in the next five years and generate employment for 11 lakh people,” Khan said.
Khan said that the policy was not a single-window policy but a ‘zero-window policy,’ in which projects would not come to the Government for clearance,
The due diligence is done by banks. If a company manages to get its loan sanctioned under the Technology Upgradation Fund Scheme from banks, then it is eligible for subsidy, he said.
The Union Government initiated the Scheme in 1999, and it has attracted over Rs 4 lakh crore investments in the sector, as of date.
Textile Secretary Sunil Porwal said that all the 411 projects have achieved financial closure. For the Rs 3,834 crore investments, about Rs 400 crore will be the subsidy outgo spread over seven years.
The policy has been attracting investment because of the capital and interest subsidy component built into the scheme. Due to the zero-window policy, clearance is quick.
Khan also added that 18 spinning mills are keen to set up their units in the State, which would attract Rs 2,000 crore in investments. However, since they don’t fit in the Scheme, their projects are awaiting approval from banks, he said.
TRAI allows Service Providers to Offer Combo Vouchers
New Delhi: Telecom Regulatory Authority of India (TRAI) today issued “The Telecom Consumer Protection (Fourth Amendment) Regulations, 2012”, permitting access service providers to offer Combo Vouchers. The Telecom Consumer Protection Regulation, 2012 (TCPR) permitted only three categories of vouchers-- Plan Vouchers, Top-ups and STVs. There were demands from several service providers and Cellular Operators Association of India to allow a fourth category of vouchers--Combo Vouchers—which would provide monetary value and tariff concessions through a single voucher.
Such vouchers would provide more flexibility to the service providers to offer innovative bundling of the products based on market segmentation. Further, use of Combo Vouchers afford the subscriber convenience of purchasing additional monetary value as well as well as getting benefit of special tariffs through a single transaction.
Keeping in view these facts, the Authority has decided, through the Fourth Amendment to the TCPR, to permit the Combo Vouchers as a fourth category of vouchers with certain safeguards to ensure that Top Up Vouchers are clearly distinguishable to subscribers. Top-Up Vouchers will be exclusively available in denomination of Rs.10 and multiples thereof. The Combo Vouchers will be available only in denomination other than Rs.10 and multiples thereof. The Combo Vouchers which are in physical form will bear a blue colour band whereas the Top-Up Vouchers will bear a green colour band. The Combo Vouchers will also clearly mention the terms and conditions of offer so that consumers can make an informed choice. In addition, service providers will also mention the availability of standalone top up vouchers whenever combo vouchers are publicised.
Such vouchers would provide more flexibility to the service providers to offer innovative bundling of the products based on market segmentation. Further, use of Combo Vouchers afford the subscriber convenience of purchasing additional monetary value as well as well as getting benefit of special tariffs through a single transaction.
Keeping in view these facts, the Authority has decided, through the Fourth Amendment to the TCPR, to permit the Combo Vouchers as a fourth category of vouchers with certain safeguards to ensure that Top Up Vouchers are clearly distinguishable to subscribers. Top-Up Vouchers will be exclusively available in denomination of Rs.10 and multiples thereof. The Combo Vouchers will be available only in denomination other than Rs.10 and multiples thereof. The Combo Vouchers which are in physical form will bear a blue colour band whereas the Top-Up Vouchers will bear a green colour band. The Combo Vouchers will also clearly mention the terms and conditions of offer so that consumers can make an informed choice. In addition, service providers will also mention the availability of standalone top up vouchers whenever combo vouchers are publicised.
India Inc to make 3 buys for Rs 5,200 cr; set up Rs 80-cr plant
Chennai: Corporate India is in a festive mood, making acquisitions for over Rs 5,200 crore and announcing a greenfield plant in the Navratri week.
The stock market gave the thumbs down to one acquisition, was lukewarm to another and slightly positive to the third.
The company that announced a new plant was greeted with a near four per cent increase in its share price.
The Sensex ended the day 111 points, or 0.59 per cent, higher.
Rain Commodities
Hyderabad-based Rain Commodities made the biggest acquisition when it announced to the stock exchanges that its subsidiary would buy a 100 per cent stake in Rutgers, a Belgium-based coal tar pitch manufacturer, for about Rs 4,920 crore ( €702 million).
The wholly-owned step-down subsidiary Rain CII Carbon LLC had signed a share-purchase agreement with Triton, an investment firm in Europe, to buy Rutgers. It expected to close the transaction in the first quarter of 2013.
Rain CII, the announcement said, planned to fund the deal through a €533-million long-term bonds issue, and with owned funds.
Dr Reddy’s Lab
Dr Reddy’s Laboratories said it would pay about Rs 190 crore (€27.39 million) for a 100 per stake in OctoPlus N.V., a service-based Dutch specialty pharmaceutical company.
The Hyderabad-headquartered Dr Reddy’s Labs and its subsidiaries announced an intended public offer to buy the outstanding shares of OctoPlus.
L&T Finance
L&T Finance Holdings said it would spend Rs 120 crore to buy from Societe Generale Consumer Finance, FamilyCredit Ltd, an established non-banking finance company with presence across two-wheeler and auto financing.
Lumax Auto New plant
Announcing that it would invest Rs 80 crore in a new plant in Bangalore, Lumax Auto Technologies said the plant would supply plastic moulded parts exclusively to Honda Motorcycle & Scooters India. Lumax would finance the new plant mainly from its own resources.
The plant is likely to go on stream in the first quarter of 2013-14.
While Rain Commodities’ shares were down 5.44 per cent on the BSE, to close at Rs 40.85, L&T Finance Holdings’ fell marginally to Rs 54.
Dr Reddy’s ended 1.20 per cent higher at Rs 1,721.50, and Lumax Auto rose 3.6 per cent at Rs 169.95.
The stock market gave the thumbs down to one acquisition, was lukewarm to another and slightly positive to the third.
The company that announced a new plant was greeted with a near four per cent increase in its share price.
The Sensex ended the day 111 points, or 0.59 per cent, higher.
Rain Commodities
Hyderabad-based Rain Commodities made the biggest acquisition when it announced to the stock exchanges that its subsidiary would buy a 100 per cent stake in Rutgers, a Belgium-based coal tar pitch manufacturer, for about Rs 4,920 crore ( €702 million).
The wholly-owned step-down subsidiary Rain CII Carbon LLC had signed a share-purchase agreement with Triton, an investment firm in Europe, to buy Rutgers. It expected to close the transaction in the first quarter of 2013.
Rain CII, the announcement said, planned to fund the deal through a €533-million long-term bonds issue, and with owned funds.
Dr Reddy’s Lab
Dr Reddy’s Laboratories said it would pay about Rs 190 crore (€27.39 million) for a 100 per stake in OctoPlus N.V., a service-based Dutch specialty pharmaceutical company.
The Hyderabad-headquartered Dr Reddy’s Labs and its subsidiaries announced an intended public offer to buy the outstanding shares of OctoPlus.
L&T Finance
L&T Finance Holdings said it would spend Rs 120 crore to buy from Societe Generale Consumer Finance, FamilyCredit Ltd, an established non-banking finance company with presence across two-wheeler and auto financing.
Lumax Auto New plant
Announcing that it would invest Rs 80 crore in a new plant in Bangalore, Lumax Auto Technologies said the plant would supply plastic moulded parts exclusively to Honda Motorcycle & Scooters India. Lumax would finance the new plant mainly from its own resources.
The plant is likely to go on stream in the first quarter of 2013-14.
While Rain Commodities’ shares were down 5.44 per cent on the BSE, to close at Rs 40.85, L&T Finance Holdings’ fell marginally to Rs 54.
Dr Reddy’s ended 1.20 per cent higher at Rs 1,721.50, and Lumax Auto rose 3.6 per cent at Rs 169.95.
Reliance Power commissions boiler of Sasan UMPP's first unit
New Delhi: Reliance Power said it has commissioned boiler of the first unit of the Rs 20,000 crore ultra mega power project at Sasan in Madhya Pradesh.
The project's first unit of 660-mw capacity is expected to begin power generation in the next few weeks, an official statement said on Friday.
"This is a critical milestone of the boiler commissioning activities for the unit. The boiler light up was achieved in a record time of just 15 months and the unit is expected to be commissioned five months ahead of schedule," the statement said.
Reliance Power said it has begun mining 20 million tonnes of coal from Moher and Moher-Amlohri mines attached to the project. The plant has also been connected to the national grid by 400 KV transmission lines of Power Grid Corporation, the statement said.
The project's first unit of 660-mw capacity is expected to begin power generation in the next few weeks, an official statement said on Friday.
"This is a critical milestone of the boiler commissioning activities for the unit. The boiler light up was achieved in a record time of just 15 months and the unit is expected to be commissioned five months ahead of schedule," the statement said.
Reliance Power said it has begun mining 20 million tonnes of coal from Moher and Moher-Amlohri mines attached to the project. The plant has also been connected to the national grid by 400 KV transmission lines of Power Grid Corporation, the statement said.
Onco Therapies gets 2 more ANDA approvals from USFDA
Bengaluru: Onco Therapies Ltd, a wholly owned subsidiary of Strides Arcolab Ltd (Strides), has announced that it has received two more Abbreviated New Drug Application (ANDA) approvals for Fludarabine Phosphate Injection and Idarubicin Hydrochloride Injection.
The company has got approvals from the US Food and Drugs Administration (USFDA) and the combined market for the two drugs is about $20 million.
Fludarabine is a chemotherapy drug used to treat chronic lymphocytic leukaemia (a type of cancer of the white blood cells) in adults while Idarubicin belongs to the group of cancer-fighting medications known as antineoplastics. Idarubicin is used alone or in combination with other antineoplastic medications to treat leukaemia.
The company has got approvals from the US Food and Drugs Administration (USFDA) and the combined market for the two drugs is about $20 million.
Fludarabine is a chemotherapy drug used to treat chronic lymphocytic leukaemia (a type of cancer of the white blood cells) in adults while Idarubicin belongs to the group of cancer-fighting medications known as antineoplastics. Idarubicin is used alone or in combination with other antineoplastic medications to treat leukaemia.
Blah's KWAN in JV with Los Angeles firm
Mumbai: Los Angeles-headquartered entertainment and sports agency Creative Artists Agency (CAA) is entering the Indian market in partnership with KWAN Entertainment & Marketing Solutions. The two companies have formed a 50:50 joint venture (JV) — CAA KWAN.
The JV will represent local talent in India and SAARC nations, and create global opportunities for clients in areas such as motion pictures and television (including packaging and sales), music, commercial endorsements, sports consulting, licensing and merchandising, live events and business development.
CAA's David Taghioff and Caleb Franklin and KWAN' chief executive and managing director Anirban Das Blah and chief operating officer (CEO) Indranil "Niel" Blah will jointly lead CAA KWAN. The new company, with more than 60 employees, will be based in Mumbai, with offices in Delhi, Bangalore, and Hyderabad.
CAA, which has offices in London, Beijing, New York, Chicago, Nashville and other locations in the US and worldwide, had signed Bollywood actor Priyanka Chopra in February. It also works with director Shekhar Kapur, apart from over 2,000 celebrities from the world of entertainment and sports.
This is not the first time an international agency has come to India. Recently, American agency Platinum Rye Entertainment had picked up 50 per cent stake in Mahesh Bhupathi-promoted Globosport's Brand Advisory Business. Incidentally, Anirban Das Blah had co-founded Globosport and was the CEO of the company till 2009, when he started KWAN.
Earlier, New York-based fashion, sports and talent management company IMG Worldwide had entered into a 50:50 JV with Reliance Industries to form IMG Reliance.
“India’s robust entertainment industry offers CAA KWAN tremendous opportunities for talent across multiple platforms,” said Richard Lovett, president of CAA. “In a very short time, KWAN has intelligently scaled and diversified their business to maximise this thriving marketplace for their clients. KWAN’s deep network of relationships, local-market knowledge, and collaborative business philosophy make them a powerful partner in furthering CAA’s existing business in India and providing our clients with more opportunities.”
“We believe the combination of CAA’s experience, influence, and expertise, with KWAN’s extensive knowledge of the Indian entertainment industry, will enable us to provide an unmatched spectrum of services for our clients,” said Anirban Das Blah.
The JV will represent local talent in India and SAARC nations, and create global opportunities for clients in areas such as motion pictures and television (including packaging and sales), music, commercial endorsements, sports consulting, licensing and merchandising, live events and business development.
CAA's David Taghioff and Caleb Franklin and KWAN' chief executive and managing director Anirban Das Blah and chief operating officer (CEO) Indranil "Niel" Blah will jointly lead CAA KWAN. The new company, with more than 60 employees, will be based in Mumbai, with offices in Delhi, Bangalore, and Hyderabad.
CAA, which has offices in London, Beijing, New York, Chicago, Nashville and other locations in the US and worldwide, had signed Bollywood actor Priyanka Chopra in February. It also works with director Shekhar Kapur, apart from over 2,000 celebrities from the world of entertainment and sports.
This is not the first time an international agency has come to India. Recently, American agency Platinum Rye Entertainment had picked up 50 per cent stake in Mahesh Bhupathi-promoted Globosport's Brand Advisory Business. Incidentally, Anirban Das Blah had co-founded Globosport and was the CEO of the company till 2009, when he started KWAN.
Earlier, New York-based fashion, sports and talent management company IMG Worldwide had entered into a 50:50 JV with Reliance Industries to form IMG Reliance.
“India’s robust entertainment industry offers CAA KWAN tremendous opportunities for talent across multiple platforms,” said Richard Lovett, president of CAA. “In a very short time, KWAN has intelligently scaled and diversified their business to maximise this thriving marketplace for their clients. KWAN’s deep network of relationships, local-market knowledge, and collaborative business philosophy make them a powerful partner in furthering CAA’s existing business in India and providing our clients with more opportunities.”
“We believe the combination of CAA’s experience, influence, and expertise, with KWAN’s extensive knowledge of the Indian entertainment industry, will enable us to provide an unmatched spectrum of services for our clients,” said Anirban Das Blah.
Government clears three FDI proposals in single brand retail
New Delhi: The government on Friday gave permission to British footwear retailer Pavers England, US-based clothing company Brooks Brothers and Italian jeweller brand Damiani to set up stores in India under the single brand retail policy.
The Foreign Invstment Promotion Board (FIPB) also allowed construction and engineering major Larsen & Toubro to induct foreign investment in its defence production venture.
The FIPB, the apex body for clearing foreign investment proposals, gave its go ahead to Pavers at its meeting chaired by Arvind Mayaram, secretary, department of economic affairs.The three retail ventures are expected to bring in FDI worth over Rs 106 crore.
"It has been cleared," Mayaram said after the meeting.
Pavers' intends to set up 100% -owned subsidiary and is the first company to apply and receive nod under the new regime for single-brand retail sector that permits foreign direct investment upto 100% in a retail venture but with conditions such as mandatory 30% domestic sourcing from India.
The FIPB has allowed Brooks Brothers to invest Rs 6.22 crore in its recently announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries, and Italy's Damiani to set up a 51:49 joint venture with Mehta's Pvt Ltd, a finance ministry official said.
At present, Pavers sells products through its Chennai-based master franchisee Triton Retail in 28 exclusive stores across India and also through retail outlets of Reliance Footprint, Lifestyle, Shoppers Stop and Westside.
The government had revamped its single-brand retail policy in September making it easier for foreign retailers to comply with domestic sourcing norms. Pavers was the first foreign retailer to apply after the government in January notified its decision to raise FDI limit in single-brand retail from 51% to 100%. But, the proposal was delayed as the earlier norms allowed only the brand owner to set up shop in India.
Under the new rules, the brand owner can licence out the brand to one single entity for opening stores in India.
Pavers' application was made by Pavers Foresight Smart Ventures, a $60-million equal joint venture between Pavers and the Foresight Group based in Mauritius.
The Foreign Invstment Promotion Board (FIPB) also allowed construction and engineering major Larsen & Toubro to induct foreign investment in its defence production venture.
The FIPB, the apex body for clearing foreign investment proposals, gave its go ahead to Pavers at its meeting chaired by Arvind Mayaram, secretary, department of economic affairs.The three retail ventures are expected to bring in FDI worth over Rs 106 crore.
"It has been cleared," Mayaram said after the meeting.
Pavers' intends to set up 100% -owned subsidiary and is the first company to apply and receive nod under the new regime for single-brand retail sector that permits foreign direct investment upto 100% in a retail venture but with conditions such as mandatory 30% domestic sourcing from India.
The FIPB has allowed Brooks Brothers to invest Rs 6.22 crore in its recently announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries, and Italy's Damiani to set up a 51:49 joint venture with Mehta's Pvt Ltd, a finance ministry official said.
At present, Pavers sells products through its Chennai-based master franchisee Triton Retail in 28 exclusive stores across India and also through retail outlets of Reliance Footprint, Lifestyle, Shoppers Stop and Westside.
The government had revamped its single-brand retail policy in September making it easier for foreign retailers to comply with domestic sourcing norms. Pavers was the first foreign retailer to apply after the government in January notified its decision to raise FDI limit in single-brand retail from 51% to 100%. But, the proposal was delayed as the earlier norms allowed only the brand owner to set up shop in India.
Under the new rules, the brand owner can licence out the brand to one single entity for opening stores in India.
Pavers' application was made by Pavers Foresight Smart Ventures, a $60-million equal joint venture between Pavers and the Foresight Group based in Mauritius.
India-UK trade registered 30 per cent growth in last 12 months
New Delhi: Trade between India and the United Kingdom (UK) has registered a growth of 30 per cent in the last 12 months. There is opportunity to do more and add more value, according to Mr Jaimini Bhagwati, Indian High Commissioner to UK.
“India-UK relations are close, whether in the area of people to people, governance or corporate affairs. There has been intense exchange at every level including visits of CEOs of companies,” said Mr Bhagwati during a reception he hosted for international media at the India House.
Bilateral trade between the two countries crossed US$ 16 billion last year. The UK comprises more than 700 of the 1,200 Indian businesses in the European Union (EU).
Currently, the Government of India's 25 officers from various departments are on a week-long programme at the School of Business at Cambridge.
“India-UK relations are close, whether in the area of people to people, governance or corporate affairs. There has been intense exchange at every level including visits of CEOs of companies,” said Mr Bhagwati during a reception he hosted for international media at the India House.
Bilateral trade between the two countries crossed US$ 16 billion last year. The UK comprises more than 700 of the 1,200 Indian businesses in the European Union (EU).
Currently, the Government of India's 25 officers from various departments are on a week-long programme at the School of Business at Cambridge.
Friday, October 19, 2012
GVK partners Samsung, Smithbridge for Oz project
Hyderabad: Hyderabad-based GVK Power & Infrastructure Ltd (GVKPIL) plans to tie up $10 billion of funds for its Australian pit-to-port project in a year's time.
With all approvals in place, the company has awarded a contract to Korea-based Samsung C&T and Smithbridge Group Pvt Ltd of Australia for the port component.
GVKPIL, through its subsidiary, Hancock Coal Infrastructure, is erecting the $10-billion project at Abbot Point in North Queensland. "We got all our approvals last week. From this week, we are starting our financing programme and construction contracts. The third quarter of the next calendar year will see financial closure and construction would start,” G V Sanjay Reddy, vice-chairman, GVKPIL, said. He did not give details of the financing.
The Terminal-III port is being built with an investment of $2 billion for the Alpha Coal project, involving onshore and offshore infrastructure.
With all approvals in place, the company has awarded a contract to Korea-based Samsung C&T and Smithbridge Group Pvt Ltd of Australia for the port component.
GVKPIL, through its subsidiary, Hancock Coal Infrastructure, is erecting the $10-billion project at Abbot Point in North Queensland. "We got all our approvals last week. From this week, we are starting our financing programme and construction contracts. The third quarter of the next calendar year will see financial closure and construction would start,” G V Sanjay Reddy, vice-chairman, GVKPIL, said. He did not give details of the financing.
The Terminal-III port is being built with an investment of $2 billion for the Alpha Coal project, involving onshore and offshore infrastructure.
IOC ties up with Korea Gas for LNG venture
New Delhi: Flagship refiner IndianOil Corporation on Wednesday signed an MoU with Korea Gas Corporation (Kogas) to jointly explore opportunities in oil and gas, including liquid gas transported in ships or LNG.
"IOC and Kogas signed an MoU for joint participation in exploration and production of gas and oil at the global level and developing natural gas infrastructure projects and LNG sourcing," company's director (business development) A M K Sinha said on the sidelines of Petrotech 2012 conference.
The team of Kogas executives under its executive vice-president (LNG) Hyun Kun Shin met IndianOil chairman R S Butola who emphasized the need for time-bound progress in areas identified in the MoU.
Butola later said IOC was looking at Kogas' strength for LNG swaps. One of the possibilities was to source LNG from US through Kogas. Since US laws bar gas exports to non-FTA countries, Indian companies are barred from accessing US gas. But Korea being a free trade partner of US, Kogas imports LNG from US, which can be swapped.
Kogas is the national gas company of Korea and the world's largest single importer of LNG, clocking about 33 million tonnes in 2011. Kogas is the developer, owner and operator of three large-scale LNG receiving terminals as well as an extensive nationwide pipeline network in Korea.
It has equity investments in LNG liquefaction projects and 20 overseas E&P projects and has lined up LNG sourcing contracts from several countries.
"IOC and Kogas signed an MoU for joint participation in exploration and production of gas and oil at the global level and developing natural gas infrastructure projects and LNG sourcing," company's director (business development) A M K Sinha said on the sidelines of Petrotech 2012 conference.
The team of Kogas executives under its executive vice-president (LNG) Hyun Kun Shin met IndianOil chairman R S Butola who emphasized the need for time-bound progress in areas identified in the MoU.
Butola later said IOC was looking at Kogas' strength for LNG swaps. One of the possibilities was to source LNG from US through Kogas. Since US laws bar gas exports to non-FTA countries, Indian companies are barred from accessing US gas. But Korea being a free trade partner of US, Kogas imports LNG from US, which can be swapped.
Kogas is the national gas company of Korea and the world's largest single importer of LNG, clocking about 33 million tonnes in 2011. Kogas is the developer, owner and operator of three large-scale LNG receiving terminals as well as an extensive nationwide pipeline network in Korea.
It has equity investments in LNG liquefaction projects and 20 overseas E&P projects and has lined up LNG sourcing contracts from several countries.
Luxembourg invites Indian investments
Mumbai: Luxembourg, the small European nation, has offered Indian companies a favourable investment climate to tap the European Union’s markets effectively.
Gaston Stronck, Luxembourg Ambassador to India, said the country has the most efficient processes in place to set up a new company. In fact, he said, with all the required papers in place and a clear intention, one could get the clearance for setting up a company in just 48 hours. Among European countries, Luxembourg has the lowest corporate tax rate of 29 per cent and has halved the value added tax to 5.7 per cent for corporates that register their intellectual property rights there.
It also exempts Value Added Tax (VAT) on commodities at the entry point. Companies can set up warehouses in Luxembourg and pay VAT when goods are moved out of the country.
On the potential investment from Luxembourg in India, Stronck said the country’s assets under management total €2,225 billion of which only €45 billion is invested in India.
More reforms like the recent Government measure to allow foreign direct investment in retail could improve the flow of investments into India, he said.
Global depository receipts of 150 Indian companies are already traded on the Luxembourg Stock Exchange. In the manufacturing sector, the country has much to offer as it is considered the pioneer in steel making technology and houses the largest steel manufacturing company, Arcelor Mittal.
Luxembourg has managed to register GDP growth of two per cent despite the slowdown in economic activity due to the ongoing euro crisis, said Stronck.
“We have managed to beat the economic slowdown in other European nations as our country is more aligned to Germany which has been the bright spot amongst the European economy,” he said.
Hoping the free trade agreement with India would be signed by the end of this year, Stronck said it would be a comprehensive and competitive and would benefit both countries.
Gaston Stronck, Luxembourg Ambassador to India, said the country has the most efficient processes in place to set up a new company. In fact, he said, with all the required papers in place and a clear intention, one could get the clearance for setting up a company in just 48 hours. Among European countries, Luxembourg has the lowest corporate tax rate of 29 per cent and has halved the value added tax to 5.7 per cent for corporates that register their intellectual property rights there.
It also exempts Value Added Tax (VAT) on commodities at the entry point. Companies can set up warehouses in Luxembourg and pay VAT when goods are moved out of the country.
On the potential investment from Luxembourg in India, Stronck said the country’s assets under management total €2,225 billion of which only €45 billion is invested in India.
More reforms like the recent Government measure to allow foreign direct investment in retail could improve the flow of investments into India, he said.
Global depository receipts of 150 Indian companies are already traded on the Luxembourg Stock Exchange. In the manufacturing sector, the country has much to offer as it is considered the pioneer in steel making technology and houses the largest steel manufacturing company, Arcelor Mittal.
Luxembourg has managed to register GDP growth of two per cent despite the slowdown in economic activity due to the ongoing euro crisis, said Stronck.
“We have managed to beat the economic slowdown in other European nations as our country is more aligned to Germany which has been the bright spot amongst the European economy,” he said.
Hoping the free trade agreement with India would be signed by the end of this year, Stronck said it would be a comprehensive and competitive and would benefit both countries.
Turkey aims to boost trade ties with India
Turkey aims to boost trade ties with India
The Hindu Business Line: October 18, 2012
Hyderabad: Investment opportunities in Turkey were highlighted by a Turkish delegation at a seminar organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here on Tuesday.
Ceylan Özen Erien, Consul General, Consulate General of Turkey, who led the delegation, said that bilateral trade between India and Turkey, which was only $505 million in 2000, rose to almost $ 7 billion last year.
Turkey is aiming at raising the trade volume with India to $10 billion within a few years. “The Free Trade Agreement that the two countries were working on would go a long way in achieving this target,” she said. Bi-lateral trade was skewed in India’s favour, with export from the country to Turkey totalling over $ 6 billion, while Turkey’s exports to India was about $ 750 million, she added.
Exports
India’s exports to Turkey include petroleum products, vaccines, cotton yarn, organic chemicals, denim, steel, granite and cars, while Turkey’s exports to India include poppy seeds, auto components, marble, textile machinery, cumin seeds and copper ores.
Ceylan said Turkey was now looking at new markets in Asia and Africa. Turkey is holding an international business summit in November, which will cover sectors such as ready wear, textile, leather, and textile machinery.
The Hindu Business Line: October 18, 2012
Hyderabad: Investment opportunities in Turkey were highlighted by a Turkish delegation at a seminar organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here on Tuesday.
Ceylan Özen Erien, Consul General, Consulate General of Turkey, who led the delegation, said that bilateral trade between India and Turkey, which was only $505 million in 2000, rose to almost $ 7 billion last year.
Turkey is aiming at raising the trade volume with India to $10 billion within a few years. “The Free Trade Agreement that the two countries were working on would go a long way in achieving this target,” she said. Bi-lateral trade was skewed in India’s favour, with export from the country to Turkey totalling over $ 6 billion, while Turkey’s exports to India was about $ 750 million, she added.
Exports
India’s exports to Turkey include petroleum products, vaccines, cotton yarn, organic chemicals, denim, steel, granite and cars, while Turkey’s exports to India include poppy seeds, auto components, marble, textile machinery, cumin seeds and copper ores.
Ceylan said Turkey was now looking at new markets in Asia and Africa. Turkey is holding an international business summit in November, which will cover sectors such as ready wear, textile, leather, and textile machinery.
India and New Zealand Sign "Arrangement for Cooperation on Civil Aviation
New Delhi: India and New Zealand today signed the “Arrangement for Cooperation on Civil Aviation”. The document was signed in the presence of Union Minister of Civil Aviation Shri Ajit Singh and Minister of Economic Development and Tertiary Education Mr. Steven Joyce of New Zealand by Secretary Civil Aviation Shri K.N, Shrivastava and High Commissioner of New Zealand to India Ms. Jan Henderson.
Under the Arrangement the two countries will promote and support the development of training and technical cooperation in the field of Civil Aviation. The type of cooperative activities will include civil aviation programmes; sending and receiving experts or instructors for training purposes; acceptance of licenses; acceptance of aeronautical products including but not limited to aircraft, engines, propellers and parts, and aviation services; organization of seminars; exchanging information on activities, policies, practices and laws and regulations concerning civil aviation, including but not limited to safety and environmental matters; and visits and exchanges of technical personnel or other experts. A Joint committee of the two countries will be formed to determine and oversee mutually acceptable cooperation activities. The committee will also develop a Programme of Cooperation.
Speaking on the occasion Shri Singh said the designated airlines of both sides are entitled to seven services per week in each direction, however, neither side is operating at present. Underlining that a sizeable population of Indian origin stays in New Zealand, Shri Singh added that the growth of air services between the two countries will greatly facilitate in enhancing cordial relationship, connectivity, trade and tourism.
Later the business delegations of two countries interacted on possible areas of cooperation in civil aviation sector between the two countries.
Under the Arrangement the two countries will promote and support the development of training and technical cooperation in the field of Civil Aviation. The type of cooperative activities will include civil aviation programmes; sending and receiving experts or instructors for training purposes; acceptance of licenses; acceptance of aeronautical products including but not limited to aircraft, engines, propellers and parts, and aviation services; organization of seminars; exchanging information on activities, policies, practices and laws and regulations concerning civil aviation, including but not limited to safety and environmental matters; and visits and exchanges of technical personnel or other experts. A Joint committee of the two countries will be formed to determine and oversee mutually acceptable cooperation activities. The committee will also develop a Programme of Cooperation.
Speaking on the occasion Shri Singh said the designated airlines of both sides are entitled to seven services per week in each direction, however, neither side is operating at present. Underlining that a sizeable population of Indian origin stays in New Zealand, Shri Singh added that the growth of air services between the two countries will greatly facilitate in enhancing cordial relationship, connectivity, trade and tourism.
Later the business delegations of two countries interacted on possible areas of cooperation in civil aviation sector between the two countries.
Thursday, October 18, 2012
DHL Supply Chain to invest Rs 680 crore for India expansion
Mumbai: DHL Supply Chain, a division of global logistics provider DHL, will invest more than Rs 680 crore (100 million euros) in India as part of its expansion drive. According to the company, DHL Supply Chain will invest in developing an additional 5 million square feet of warehousing space across India and eight world class multi-client sites across the country. Multi-client sites are large scale warehousing spaces at strategic locations to help different companies.
It will also invest in improving its transportation business.
"With government investments in infrastructure on the rise coupled with streamlining of regulatory policies, we are enthusiastic about the fast growth in the logistics market," said Paul Graham, CEO, Asia Pacific, DHL Supply Chain.
DHL Supply Chain, which started operations in India in 1997, currently has more than 103 warehouses spread across more than 50 cities. Indian logistics firms had grown at over 25% in fiscal 2011-12 led by large-scale outsourcing of logistics services by manufacturing and services sector and a steady rise in rural consumption, say industry experts.
The growth comes at time when the sector has been witnessing a paradigm shift with many small-scale and large-scale firms trying to improve their presence in the 3PL (third party logistics) market.
3PL players are outsourced to provide an integrated end-to-end logistics solutions such as warehousing, transportation and inventory management ensuring safe delivery and storage of goods. Logistics giants have also shown interest in the domestic logistics sector with foreign firms acquiring Indian companies in the past few years.
It will also invest in improving its transportation business.
"With government investments in infrastructure on the rise coupled with streamlining of regulatory policies, we are enthusiastic about the fast growth in the logistics market," said Paul Graham, CEO, Asia Pacific, DHL Supply Chain.
DHL Supply Chain, which started operations in India in 1997, currently has more than 103 warehouses spread across more than 50 cities. Indian logistics firms had grown at over 25% in fiscal 2011-12 led by large-scale outsourcing of logistics services by manufacturing and services sector and a steady rise in rural consumption, say industry experts.
The growth comes at time when the sector has been witnessing a paradigm shift with many small-scale and large-scale firms trying to improve their presence in the 3PL (third party logistics) market.
3PL players are outsourced to provide an integrated end-to-end logistics solutions such as warehousing, transportation and inventory management ensuring safe delivery and storage of goods. Logistics giants have also shown interest in the domestic logistics sector with foreign firms acquiring Indian companies in the past few years.
ExlService acquires US-based Landacorp
Mumbai: Business process outsourcing firm ExlService Holdings on Tuesday announced the acquisition of Landacorp, significantly increasing its capabilities in the healthcare industry. The financial details of the deal were not disclosed.
Landacorp, a provider of healthcare solutions and technology, with more than 50 million members under management on its platforms, has developed services and technology solutions that share clinical data with payers, providers, plan participants and accountable care organisations.
“The acquisition provides Exl with an end-to-end solution for the healthcare industry which is consistent with our strategy of building deep domain expertise in select industry verticals and offering platform-based solutions. It gives us access to proprietary technology platform, embedded analytics and healthcare domain expertise. Equally important are Landacorp’s strong relationships with many leading health insurers and its strong culture of client centricity,” said Rohit Kapoor, vice-chairman and CEO, ExlService.
Exl has been acquiring small companies with niche focus and capabilities over the last few quarters. Last year, it acquired Trumbull Services, which gave it a stronghold in the insurance space. In 2011, it also closed the acquisition of Outsource Partners International that has a significant presence in the finance and accounting space with 3,700 employees.
With this acquisition, Exl also gets Landacorp’s flagship CareRadius suite, a platform designed to integrate a payer’s internal and external data to streamline workflows, support collaboration among healthcare professionals and drive health decision making with analytics.
For several years, healthcare has been a dynamic and rapidly growing domain for Exl. The Landacorp acquisition strengthens Exl's ability to support the healthcare industry with better outcomes by combining technology, operational efficiency and analytics.
Healthcare offers an attractive growth opportunity for the IT and BPO industry. According to research firm NelsonHall, the market for outsourced services to healthcare payers should increase to $15 billion in 2016 from $9 billion in 2011.
Prior to this acquisition, Landacorp was a subsidiary of SHPS, Inc. Following its acquisition by Exl, Landacorp will be known as Exl Landa.
Landacorp, a provider of healthcare solutions and technology, with more than 50 million members under management on its platforms, has developed services and technology solutions that share clinical data with payers, providers, plan participants and accountable care organisations.
“The acquisition provides Exl with an end-to-end solution for the healthcare industry which is consistent with our strategy of building deep domain expertise in select industry verticals and offering platform-based solutions. It gives us access to proprietary technology platform, embedded analytics and healthcare domain expertise. Equally important are Landacorp’s strong relationships with many leading health insurers and its strong culture of client centricity,” said Rohit Kapoor, vice-chairman and CEO, ExlService.
Exl has been acquiring small companies with niche focus and capabilities over the last few quarters. Last year, it acquired Trumbull Services, which gave it a stronghold in the insurance space. In 2011, it also closed the acquisition of Outsource Partners International that has a significant presence in the finance and accounting space with 3,700 employees.
With this acquisition, Exl also gets Landacorp’s flagship CareRadius suite, a platform designed to integrate a payer’s internal and external data to streamline workflows, support collaboration among healthcare professionals and drive health decision making with analytics.
For several years, healthcare has been a dynamic and rapidly growing domain for Exl. The Landacorp acquisition strengthens Exl's ability to support the healthcare industry with better outcomes by combining technology, operational efficiency and analytics.
Healthcare offers an attractive growth opportunity for the IT and BPO industry. According to research firm NelsonHall, the market for outsourced services to healthcare payers should increase to $15 billion in 2016 from $9 billion in 2011.
Prior to this acquisition, Landacorp was a subsidiary of SHPS, Inc. Following its acquisition by Exl, Landacorp will be known as Exl Landa.
Indo-African Millet Network to work with farmers for boosting output
Hyderabad: A group of environmental organisations and NGOs from India and West Africa launched the Indo-African Millet Network at a side-meeting of the on-going UN conference on biological diversity.
The initiatives will aim at working with farmers groups across India and West Africa to boost production and demand of millets.
These groups see millets as a bonding crop between India and Africa, especially because of nutritional values.
The groups are led by Millet Network of India, Deccan Development Society, Coalition to Protect African Genetic Heritage (Copagen) based in Benin, Organic Farming Association of India and Paryavarana Vikas Kendra of Gujarat.
National Convenor of Millet Network of India P.V. Satheesh said that millet production in India has declined by 50 per cent in the last two decades, primarily due to lack of incentives to farmers and adequate policy backing.
“We have been seeking inclusion of millets in the public distribution system as one way to boost production,” he told media persons here.
The organisation has brought back about 5,000 acres under millet cultivation across eight States, including Karnataka, Andhra Pradesh, Gujarat and Rajasthan through farmers programmes.
Rene Segbenou of Copagen said millet production had fallen in certain parts of Africa and through this initiative, efforts would be made to boost production of this crop.
The initiatives will aim at working with farmers groups across India and West Africa to boost production and demand of millets.
These groups see millets as a bonding crop between India and Africa, especially because of nutritional values.
The groups are led by Millet Network of India, Deccan Development Society, Coalition to Protect African Genetic Heritage (Copagen) based in Benin, Organic Farming Association of India and Paryavarana Vikas Kendra of Gujarat.
National Convenor of Millet Network of India P.V. Satheesh said that millet production in India has declined by 50 per cent in the last two decades, primarily due to lack of incentives to farmers and adequate policy backing.
“We have been seeking inclusion of millets in the public distribution system as one way to boost production,” he told media persons here.
The organisation has brought back about 5,000 acres under millet cultivation across eight States, including Karnataka, Andhra Pradesh, Gujarat and Rajasthan through farmers programmes.
Rene Segbenou of Copagen said millet production had fallen in certain parts of Africa and through this initiative, efforts would be made to boost production of this crop.
Turkmenistan invites India to invest in Caspian Offshore
New Delhi: Turkmenistan has invited Indian companies to explore hydrocarbon at its Caspian Offshore region.
"Many international companies are already working. We want Indian companies also to participate," Kakageldy Abdullaev, Acting Minister of Oil and Gas Industry and Mineral Resources of Turkmenistan, told media persons at Petrotech 2012.
The companies that evinced interest from India include ONGC Videsh and GAIL (India). Abdullaev discussed the opportunities with India's Petroleum Minister S. Jaipal Reddy on Tuesday.
"We want India to increase its presence in Turkmenistan soil," Abdullaev added.
Mozambique
India has told Mozambique that it would like to set up fertiliser and petrochemical units in the country.
India has asked at what price Mozambique can make gas available to Indian companies," a Petroleum Ministry official told media persons.
Next year, Mozambique may put its hydrocarbon assets for bidding, the official said.
Malaysia
India has sought more gas from Malaysia.
"We would be interested in LNG from their global assets. They are willing to consider. India has also discussed if EIL, which has presence in Malaysia, can participate in petrochemical and upgradation projects," the official said.
Sudan
The Government of Sudan has formed a committee to look at the pipeline that would help OVL and others to transport gas.
Already a proposal has been put up that determines the charges at $11 a barrel. This includes transportation fee of $8.40 plus processing fee of $1.60 and a transit fee of $1.
India is seeking exemption of the transit fee, the official said.
"Many international companies are already working. We want Indian companies also to participate," Kakageldy Abdullaev, Acting Minister of Oil and Gas Industry and Mineral Resources of Turkmenistan, told media persons at Petrotech 2012.
The companies that evinced interest from India include ONGC Videsh and GAIL (India). Abdullaev discussed the opportunities with India's Petroleum Minister S. Jaipal Reddy on Tuesday.
"We want India to increase its presence in Turkmenistan soil," Abdullaev added.
Mozambique
India has told Mozambique that it would like to set up fertiliser and petrochemical units in the country.
India has asked at what price Mozambique can make gas available to Indian companies," a Petroleum Ministry official told media persons.
Next year, Mozambique may put its hydrocarbon assets for bidding, the official said.
Malaysia
India has sought more gas from Malaysia.
"We would be interested in LNG from their global assets. They are willing to consider. India has also discussed if EIL, which has presence in Malaysia, can participate in petrochemical and upgradation projects," the official said.
Sudan
The Government of Sudan has formed a committee to look at the pipeline that would help OVL and others to transport gas.
Already a proposal has been put up that determines the charges at $11 a barrel. This includes transportation fee of $8.40 plus processing fee of $1.60 and a transit fee of $1.
India is seeking exemption of the transit fee, the official said.
India Germany Discuss Cooperation in Shipping Sector
New Delhi: Mr. Olaf Scholz, First Mayor (Chief Minister) of Hamburg, Federal Republic of Germany called on the Minister of Shipping, Shri G.K.Vasan today in New Delhi.
During the meeting, the Minister recalled the long association with Germany in maritime sector and informed that an Agreement between India and the Federal Republic of Germany on Maritime Transport Relations was signed on 15 June, 1966 in New Delhi.
The Minister said that India values its strategic partnership with Germany and stands ready to broaden and deepen it in all its aspects. The Minister enquired about the strengths of Hamburg City in logistics and maritime industry sector. Possible areas of cooperation were discussed during the meeting. India would like to seek German expertise in areas in areas such as decongestion of ports; information technology for the movement of container traffic and maritime training.
The Minister recalled that the India participated at the Hamburg Port Festival 2012 held between 11-13 May, 2012, as partner country and featured a variety of activities dealing with Indian culture and provided visitors with information on the country's culture, cuisine and ways to travel to India. Senior officials from the Directorate General of Light houses and Lightships, Inland Waterways Authority of India, Indian Ports Association, Shipping Corporation of India, Cochin Port, New Mangalore Port and Mumbai Port Trust also took part in the Festival to highlight the recent developments in the logistics sector in India and highlighted the investment opportunities in the port sector in India. The Minister also thanked Mr. Scholz for his extensive support for a successful participation by India in the Hamburg Port Festival which signaled the launching of Days of India in Germany.
The Minister stated that the areas identified could be explored further by a team of officers from respective sides who could draw up the plan for further cooperation. The Minister expressed hope that since 100% FDI is allowed in the shipping sector in India and keeping in view that India is emerging as a logistics hub and cruise destination, investments in maritime sector from German companies would be mutually beneficial for both the countries.
During the meeting, the Minister recalled the long association with Germany in maritime sector and informed that an Agreement between India and the Federal Republic of Germany on Maritime Transport Relations was signed on 15 June, 1966 in New Delhi.
The Minister said that India values its strategic partnership with Germany and stands ready to broaden and deepen it in all its aspects. The Minister enquired about the strengths of Hamburg City in logistics and maritime industry sector. Possible areas of cooperation were discussed during the meeting. India would like to seek German expertise in areas in areas such as decongestion of ports; information technology for the movement of container traffic and maritime training.
The Minister recalled that the India participated at the Hamburg Port Festival 2012 held between 11-13 May, 2012, as partner country and featured a variety of activities dealing with Indian culture and provided visitors with information on the country's culture, cuisine and ways to travel to India. Senior officials from the Directorate General of Light houses and Lightships, Inland Waterways Authority of India, Indian Ports Association, Shipping Corporation of India, Cochin Port, New Mangalore Port and Mumbai Port Trust also took part in the Festival to highlight the recent developments in the logistics sector in India and highlighted the investment opportunities in the port sector in India. The Minister also thanked Mr. Scholz for his extensive support for a successful participation by India in the Hamburg Port Festival which signaled the launching of Days of India in Germany.
The Minister stated that the areas identified could be explored further by a team of officers from respective sides who could draw up the plan for further cooperation. The Minister expressed hope that since 100% FDI is allowed in the shipping sector in India and keeping in view that India is emerging as a logistics hub and cruise destination, investments in maritime sector from German companies would be mutually beneficial for both the countries.
Tuesday, October 16, 2012
KEC International bags Rs 868 crore contracts
New Delhi: RPG Group's KEC International LtdBSE 1.23 % has bagged Rs 868 crore fresh orders for supply and laying of transmission, power systems and telecom lines.
The company has secured transmission orders in India, Abu Dhabi, Tunisia and Philippines. These include Rs 227 crore order from Power Grid CorporationBSE 0.13 % of India (PGCIL) for supply and erection of transmission lines in Jharkhand on turnkey basis and Rs 278 crore order for laying transmission line between Ruwais and Bab grid stations in Abu Dhabi on a turnkey basis, an official statement said.
KEC has received Rs 62 crore order from PGCIL for supply and establishment of fibre optic communication system in the western region in India.
The company has secured various orders for supply of power and telecom cables. The total value of these orders is Rs 39 crore.
The company has secured transmission orders in India, Abu Dhabi, Tunisia and Philippines. These include Rs 227 crore order from Power Grid CorporationBSE 0.13 % of India (PGCIL) for supply and erection of transmission lines in Jharkhand on turnkey basis and Rs 278 crore order for laying transmission line between Ruwais and Bab grid stations in Abu Dhabi on a turnkey basis, an official statement said.
KEC has received Rs 62 crore order from PGCIL for supply and establishment of fibre optic communication system in the western region in India.
The company has secured various orders for supply of power and telecom cables. The total value of these orders is Rs 39 crore.
Tata Capital, Century Tokyo join hands for leasing solutions
New Delhi: Tata Capital aims to create assets worth Rs 2,500 crore over next five years through its business partnership with Japan’s Century Tokyo Leasing Corporation.
The Indian company, through its wholly-owned subsidiary Tata Capital Financial Services, has entered into a business partnership with the Japanese company. The venture will offer leasing solutions through a separate ‘Leasing Division’ in TCFSL — Tata Capital Leasing Solutions.
At present, the equipment leasing market in India is estimated at Rs 20,000 crore and is expected to grow at an annual rate of 25-30 per cent over the next few years.
Services to be offered
The services proposed to be offered include a full spectrum of leasing solutions from plain vanilla to complex structures, across diverse industries and for all equipment.
Under the agreement, it is proposed to launch a ‘Japan-Desk’, which will be represented by senior officials of TC-Lease who will be based in India as part of the Leasing Division. The primary responsibility of the Japan Desk will be to source business from Japanese companies based in India.
Tata Capital’s Managing Director and Chief Operating Officer Praveen P. Kadle said, “It gives us expertise in lease operations. In many countries, leasing accounts for huge amount of capital formation. In advanced countries, leasing contributes almost 20 per cent of capital formation, in India it is just 1.5 per cent. So, in the time to come, we will see leasing playing an important role in capital formation.”
Century Tokyo’s President Shunichi Asada said, “Our experience in the field of leasing solutions and Tata Capital’s extensive network in India would help provide the right financing solutions and guidance to Japanese and other companies in India.”
The business partnership intends to form a joint venture once asset creation of Rs 2,500 crore is reached. However, no decision has been taken about the equity structure in the proposed joint venture.
The Indian company, through its wholly-owned subsidiary Tata Capital Financial Services, has entered into a business partnership with the Japanese company. The venture will offer leasing solutions through a separate ‘Leasing Division’ in TCFSL — Tata Capital Leasing Solutions.
At present, the equipment leasing market in India is estimated at Rs 20,000 crore and is expected to grow at an annual rate of 25-30 per cent over the next few years.
Services to be offered
The services proposed to be offered include a full spectrum of leasing solutions from plain vanilla to complex structures, across diverse industries and for all equipment.
Under the agreement, it is proposed to launch a ‘Japan-Desk’, which will be represented by senior officials of TC-Lease who will be based in India as part of the Leasing Division. The primary responsibility of the Japan Desk will be to source business from Japanese companies based in India.
Tata Capital’s Managing Director and Chief Operating Officer Praveen P. Kadle said, “It gives us expertise in lease operations. In many countries, leasing accounts for huge amount of capital formation. In advanced countries, leasing contributes almost 20 per cent of capital formation, in India it is just 1.5 per cent. So, in the time to come, we will see leasing playing an important role in capital formation.”
Century Tokyo’s President Shunichi Asada said, “Our experience in the field of leasing solutions and Tata Capital’s extensive network in India would help provide the right financing solutions and guidance to Japanese and other companies in India.”
The business partnership intends to form a joint venture once asset creation of Rs 2,500 crore is reached. However, no decision has been taken about the equity structure in the proposed joint venture.
Private equity deals rise 16% in July-Sept
Mumbai: Private equity deals jumped 16 per cent in the July-September quarter, driven by large deals like Bain Capital’s investment in Genpact at $1 billion, Flipkart’s fund raising of $150 million and Ashoka’s Concessions’ fund raise of $150 million.
Even as deal-making gathered momentum, the IT and ITES sector appear to have contributed 59 per cent of PE deal activity, mainly driven by the Genpact deal and deals in the e-commerce sector.
While the pharma, healthcare and biotech sectors saw a lot of activity, PE deals in the banking and financial services sector too showed an uptrend, according to a report on mergers and acquisition and PE by advisory firm Grant Thornton.
Three large PE deals were reported in August. Bain Capital's 30 per cent stake in Genpact, a billion-dollar transaction, enabling an exit to Oak Hill Partners, was the highlight. Flipkart raised $150 million from Naspers. PE deals totalling $1.8 billion were concluded in August, the highest-ever this year.
In the pharma space, Goldman Sachs invested $40 million in Bangalore-based Nova Medical Centers Pvt Ltd, which also saw an investment of $14 million by New Enterprise Associates in August.
The very next month, short-stay surgical care and fertility clinic company Nova Medical Centers said it would acquire a majority interest in Excel Hospitals, Kanpur, for an undisclosed amount. Given the investment, the company said it was well on its way to achieving its commitment of setting up 25 centres across India and West Asia by this year.
PE firm Proparco, a French development financing firm, invested $12.50 million for a 20 per cent stake in Strides Arcolab’s African business. Bangalore-based Strides Arcolab has been in Africa for some years now.
Global investment firm Norwest Venture Partner invested $21.82 million for a 10 per cent stake in Thyrocare Technologies and invested $4.50 million in Bangalore-based NationWide Primary Health Services, a retail chain of primary care clinics.
In the travel and tourism space, Citigroup Venture Capital International invested $137.75 million in Cox and King's unit Prometheon Holdings. In September last year, Prometheon had bought UK-based tour operator Holidaybreak for Rs 2,300 crore.
In early September, Cox and King announced plans of a stake sale in Prometheon Holdings for $137.75 million in a move to reduce its debt.
Even as deal-making gathered momentum, the IT and ITES sector appear to have contributed 59 per cent of PE deal activity, mainly driven by the Genpact deal and deals in the e-commerce sector.
While the pharma, healthcare and biotech sectors saw a lot of activity, PE deals in the banking and financial services sector too showed an uptrend, according to a report on mergers and acquisition and PE by advisory firm Grant Thornton.
Three large PE deals were reported in August. Bain Capital's 30 per cent stake in Genpact, a billion-dollar transaction, enabling an exit to Oak Hill Partners, was the highlight. Flipkart raised $150 million from Naspers. PE deals totalling $1.8 billion were concluded in August, the highest-ever this year.
In the pharma space, Goldman Sachs invested $40 million in Bangalore-based Nova Medical Centers Pvt Ltd, which also saw an investment of $14 million by New Enterprise Associates in August.
The very next month, short-stay surgical care and fertility clinic company Nova Medical Centers said it would acquire a majority interest in Excel Hospitals, Kanpur, for an undisclosed amount. Given the investment, the company said it was well on its way to achieving its commitment of setting up 25 centres across India and West Asia by this year.
PE firm Proparco, a French development financing firm, invested $12.50 million for a 20 per cent stake in Strides Arcolab’s African business. Bangalore-based Strides Arcolab has been in Africa for some years now.
Global investment firm Norwest Venture Partner invested $21.82 million for a 10 per cent stake in Thyrocare Technologies and invested $4.50 million in Bangalore-based NationWide Primary Health Services, a retail chain of primary care clinics.
In the travel and tourism space, Citigroup Venture Capital International invested $137.75 million in Cox and King's unit Prometheon Holdings. In September last year, Prometheon had bought UK-based tour operator Holidaybreak for Rs 2,300 crore.
In early September, Cox and King announced plans of a stake sale in Prometheon Holdings for $137.75 million in a move to reduce its debt.
Government working on fiscal incentives for gas sector: President Pranab Mukherjee
New Delhi: The government is planning to incentivize energy firms to explore and produce natural gas domestically by extending them similar fiscal incentives currently available to only crude oil production, President Pranab Mukherjee said on Monday.
"The government is working towards extending fiscal incentives similar to those provided for exploration of oil to all forms of natural gas exploration and exploitation," Mukherjee said on Monday while inaugurating Petrotech conference. Currently, India provides tax incentives on crude oil production but similar fiscal concession is denied to gas producers.
President said the policy change is in tune with rapidly changing hydrocarbons sector where share of gas has increased because of commercial development of coal bed methane, shale gas, underground coal gas and gas hydrates.
Mukherjee said the natural gas use is expected to increase in years to come and stressed on the need to connect various parts of India with gas pipelines so that economic benefits of natural gas reach to all. "Government of India is also currently extending full support to companies acquiring overseas oil and gas assets and imports of LNG (liquefied natural gas). It would, in this context, be necessary to accord due priority to the development of a countrywide gas pipeline transportation infrastructure," he said.
President said discoveries of new oil and gas reserves in the recent past in India had been encouraging. "Government of India's New Exploration Licensing Policy launched in 1997-98 has seen investment of over $14 billion and has resulted in 87 oil and gas discoveries. Nelp has all the ingredients of a favourable investment climate, fiscal stability, transparency of the rule of law, contract stability, minimal policy induced uncertainties and a stable legal and regulatory framework," he said.
The refining sector in India, too, has witnessed a silent revolution, he said. "India has, over the years, developed into a major export hub. With a refining capacity of 215 million metric tonnes per annum, exports of petroleum products have now crossed 60 million tonnes, fetching revenue of close to $60 billion. It has emerged as the single largest component of merchandise exports from India," he said.
Mukherjee also gave advice to the oil and gas industry. "I expect the domestic oil and gas industry to place sustainable development at the core of its business decisions. This means placing safety, environment, and community interest at the centre of its policies," he said.
"The government is working towards extending fiscal incentives similar to those provided for exploration of oil to all forms of natural gas exploration and exploitation," Mukherjee said on Monday while inaugurating Petrotech conference. Currently, India provides tax incentives on crude oil production but similar fiscal concession is denied to gas producers.
President said the policy change is in tune with rapidly changing hydrocarbons sector where share of gas has increased because of commercial development of coal bed methane, shale gas, underground coal gas and gas hydrates.
Mukherjee said the natural gas use is expected to increase in years to come and stressed on the need to connect various parts of India with gas pipelines so that economic benefits of natural gas reach to all. "Government of India is also currently extending full support to companies acquiring overseas oil and gas assets and imports of LNG (liquefied natural gas). It would, in this context, be necessary to accord due priority to the development of a countrywide gas pipeline transportation infrastructure," he said.
President said discoveries of new oil and gas reserves in the recent past in India had been encouraging. "Government of India's New Exploration Licensing Policy launched in 1997-98 has seen investment of over $14 billion and has resulted in 87 oil and gas discoveries. Nelp has all the ingredients of a favourable investment climate, fiscal stability, transparency of the rule of law, contract stability, minimal policy induced uncertainties and a stable legal and regulatory framework," he said.
The refining sector in India, too, has witnessed a silent revolution, he said. "India has, over the years, developed into a major export hub. With a refining capacity of 215 million metric tonnes per annum, exports of petroleum products have now crossed 60 million tonnes, fetching revenue of close to $60 billion. It has emerged as the single largest component of merchandise exports from India," he said.
Mukherjee also gave advice to the oil and gas industry. "I expect the domestic oil and gas industry to place sustainable development at the core of its business decisions. This means placing safety, environment, and community interest at the centre of its policies," he said.
India and Bulgaria to Explore Cooperation in Tourism Sector
New Delhi: India and Bulgaria will explore the possibilities of cooperation in Tourism Sector. This was decided at a meeting held between Tourism Minister of Bulgaria Mr. Delian Dobrev and Union Tourism Minister Shri Subodh Kant Sahai here today.
It was decided in the meeting that both the countries will identify areas for working together and explore new opportunities in Tourism sector especially in the field of Hospitality Training, Promotion, Marketing, Development and management of Tourist destinations. Both sides gave an overview of the “Tourism Sector” in their respective countries and re-emphasised on its potential for employment generation and economic growth. It was also agreed that increased tourist traffic between the two countries could strengthen the bilateral relations at people to people level. Both sides also exchanged views to explore the possibilities of promoting investment in the field of hotel industry tourism and infrastructural development. India allows 100% FDI in Hotel sector on automated basis.
India and the Bulgaria emphasised upon the need of exchange of visits of tour operators and opinion makers to promote tourism between the two countries. The importance of interaction between the tour operators and destination managers of the two countries was stressed upon to develop better packages for tourists. The information about investment of opportunities in the tourism sector in both the countries was also shared. Both the countries agreed that growing opportunities in tourism sector should be showcased to attracts investments from the private stake-holders of the two countries. It was also agreed to explore the possibilities of enhancing air-connectivity between both the countries as lack of direct air connectivity between India and Bulgaria is one of the major reasons for small number of tourists traveling between the two countries.
Erlier in his welcome address Shri Sahai said that India and Bulgaria have enjoyed traditionally close and cordial bilateral relations sustained through regular high level political contacts.
Mr. Delian Dobrev in his address appreciated the friendly relations between the two countries and emphasised upon the importance of pursuing a closer relationship based on the emerging potential in the tourism sector in the two countries. He said Bulgaria with its beautiful mountains, the Black-Sea coast boasting of cities like Varna has become an attractive destination for Indian film Industry.
Mr. Delian Dobrev is on a visit to India in connection with the 17th session of the Indo-Bulgarian Joint Commission on Economic, Scientific and Technical Cooperation of which he is the co-chairman.
It was decided in the meeting that both the countries will identify areas for working together and explore new opportunities in Tourism sector especially in the field of Hospitality Training, Promotion, Marketing, Development and management of Tourist destinations. Both sides gave an overview of the “Tourism Sector” in their respective countries and re-emphasised on its potential for employment generation and economic growth. It was also agreed that increased tourist traffic between the two countries could strengthen the bilateral relations at people to people level. Both sides also exchanged views to explore the possibilities of promoting investment in the field of hotel industry tourism and infrastructural development. India allows 100% FDI in Hotel sector on automated basis.
India and the Bulgaria emphasised upon the need of exchange of visits of tour operators and opinion makers to promote tourism between the two countries. The importance of interaction between the tour operators and destination managers of the two countries was stressed upon to develop better packages for tourists. The information about investment of opportunities in the tourism sector in both the countries was also shared. Both the countries agreed that growing opportunities in tourism sector should be showcased to attracts investments from the private stake-holders of the two countries. It was also agreed to explore the possibilities of enhancing air-connectivity between both the countries as lack of direct air connectivity between India and Bulgaria is one of the major reasons for small number of tourists traveling between the two countries.
Erlier in his welcome address Shri Sahai said that India and Bulgaria have enjoyed traditionally close and cordial bilateral relations sustained through regular high level political contacts.
Mr. Delian Dobrev in his address appreciated the friendly relations between the two countries and emphasised upon the importance of pursuing a closer relationship based on the emerging potential in the tourism sector in the two countries. He said Bulgaria with its beautiful mountains, the Black-Sea coast boasting of cities like Varna has become an attractive destination for Indian film Industry.
Mr. Delian Dobrev is on a visit to India in connection with the 17th session of the Indo-Bulgarian Joint Commission on Economic, Scientific and Technical Cooperation of which he is the co-chairman.
Monday, October 15, 2012
Lemken sets up first non-European manufacturing plant in Nagpur
Nagpur: In a bid to take a slice of the estimated Rs 3,000-crore agro equipment market in India, Germany-based manufacturer Lemken GmbH and Co KG has set up its first non-European manufacturing unit at Butibori, Nagpur.
In the first phase of operations, its wholly-owned subsidiary Lemken India Agro Equipment Pvt Ltd, will make hydraulic reversible ploughs that can be used on tractors over 40 HP in power.
The company has invested Rs 60 crore to set up this facility and plans to implement a second phase, involving an equal amount, to make seedbed preparation implements, cultivators and disc harrows a year or so later.
Nicola Lemken, Partner, Lemken, and the seventh generation of ownership of the family-run-business, said the Nagpur plant will cater to the growing demand for agro equipment in India. Lemken also plans to export to countries in South-East Asia and Africa form here.
The Nagpur facility has the capacity to make 3,000 units annually in the first phase, which will be scaled up to 5,000 units in the second phase.
“All the equipment will be locally made from imported boron steel, Arvind Kumar, CEO, Lemken India said, adding local manufacture will make equipment 40 per cent cheaper in comparison to importing it. Initially, the company is setting up 35 dealerships in Maharashtra, Punjab, Karnataka, Andhra Pradesh and Tamil Nadu in the next one year, and plans a stage-wise national roll-out subsequently.
The Indian agro-equipment market is largely unorganised but estimated at Rs 3,000 crore annually, he said, pointing out that with 43 per cent of area under cultivation against 11 per cent world wide, the potential to increase productivity through mechanisation was high.
Lemken GmbH has three plants in Germany and is setting up an assembly plant in China that will become operational in 2013.
In the first phase of operations, its wholly-owned subsidiary Lemken India Agro Equipment Pvt Ltd, will make hydraulic reversible ploughs that can be used on tractors over 40 HP in power.
The company has invested Rs 60 crore to set up this facility and plans to implement a second phase, involving an equal amount, to make seedbed preparation implements, cultivators and disc harrows a year or so later.
Nicola Lemken, Partner, Lemken, and the seventh generation of ownership of the family-run-business, said the Nagpur plant will cater to the growing demand for agro equipment in India. Lemken also plans to export to countries in South-East Asia and Africa form here.
The Nagpur facility has the capacity to make 3,000 units annually in the first phase, which will be scaled up to 5,000 units in the second phase.
“All the equipment will be locally made from imported boron steel, Arvind Kumar, CEO, Lemken India said, adding local manufacture will make equipment 40 per cent cheaper in comparison to importing it. Initially, the company is setting up 35 dealerships in Maharashtra, Punjab, Karnataka, Andhra Pradesh and Tamil Nadu in the next one year, and plans a stage-wise national roll-out subsequently.
The Indian agro-equipment market is largely unorganised but estimated at Rs 3,000 crore annually, he said, pointing out that with 43 per cent of area under cultivation against 11 per cent world wide, the potential to increase productivity through mechanisation was high.
Lemken GmbH has three plants in Germany and is setting up an assembly plant in China that will become operational in 2013.
Nelp-X will be launched by December 2012: Jaipal Reddy
New Delhi: India plans to launch the tenth bidding round of oil and gas exploration blocks by the end of this calendar year after making some investor-friendly changes, oil minister Jaipal Reddy said.
"Before the next round (of new exploration licensing policy) we would like to put in place a more investor friendly regime both for investment and from point of view of pricing," Reddy told reporters on Sunday at Petrotech-2012 conference.
The basis of change would be recommendations of the Rangarajan committee, which is examining existing production sharing contracts and matters related to pricing of gas, he said. "The committee is expected to submit its recommendations in next few weeks, the oil ministry will take a view and place it before the cabinet," he said.
Reddy assured that there would not be any change retrospectively. India has auctioned more than 250 blocks under nine rounds of new exploration licensing policy ( Nelp). The ninth round was launched in October 2010.
He declined to give details. "We can't anticipate what recommendations Dr Rangarajan would give," Reddy said. Oil ministry officials said oil and gas sector investors were worried about unpredictable fiscal regime and attempts of the government to alter contractual terms such as pricing and marketing freedoms.
The oil minister said the policy, which would be framed on the basis of the expert panel, would address concers of investors.
Reddy said better inter-departmental coordination would help investors in getting regulatory approvals.
It has been decided that the oil ministry would first take inter-departmental clearances before inviting bids for blocks in the 10 thround, oil secretary GC Chaturvedi said.
Out of about 70 blocks facing regulatory hassles from defence and environment departments, problems of more than 50 are resolved, he said.
"A high level committee headed by the cabinet secretary and comprising of officials of ministries such as defence and environment, has been set up to give clearances for exploration blocks," he told reporters.
"We have been clearing blocks and I believe only 11-12 are pending for clearances now," Chaturvedi added.
"Before the next round (of new exploration licensing policy) we would like to put in place a more investor friendly regime both for investment and from point of view of pricing," Reddy told reporters on Sunday at Petrotech-2012 conference.
The basis of change would be recommendations of the Rangarajan committee, which is examining existing production sharing contracts and matters related to pricing of gas, he said. "The committee is expected to submit its recommendations in next few weeks, the oil ministry will take a view and place it before the cabinet," he said.
Reddy assured that there would not be any change retrospectively. India has auctioned more than 250 blocks under nine rounds of new exploration licensing policy ( Nelp). The ninth round was launched in October 2010.
He declined to give details. "We can't anticipate what recommendations Dr Rangarajan would give," Reddy said. Oil ministry officials said oil and gas sector investors were worried about unpredictable fiscal regime and attempts of the government to alter contractual terms such as pricing and marketing freedoms.
The oil minister said the policy, which would be framed on the basis of the expert panel, would address concers of investors.
Reddy said better inter-departmental coordination would help investors in getting regulatory approvals.
It has been decided that the oil ministry would first take inter-departmental clearances before inviting bids for blocks in the 10 thround, oil secretary GC Chaturvedi said.
Out of about 70 blocks facing regulatory hassles from defence and environment departments, problems of more than 50 are resolved, he said.
"A high level committee headed by the cabinet secretary and comprising of officials of ministries such as defence and environment, has been set up to give clearances for exploration blocks," he told reporters.
"We have been clearing blocks and I believe only 11-12 are pending for clearances now," Chaturvedi added.
West Bengal clears investments of Rs 6050cr by 4 firms
Kolkata: The Bengal government's standing committee on infrastructure development and industry on Saturday approved investments to the tune of Rs 6,050 crore by four companies in the manufacturing sector. The companies are Power Grid Corporation, SPS Steel and Power Ltd, ACC Cement and Ankit Metals and Power Ltd.
Industries minister Partha Chatterjee said after the meeting the group of ministers responded positively to the applications of the four companies for setting up industrial units in the state. "We are also reconsidering the application of Sobha Ispat," Chatterjee said. Chief minister Mamata Banerjee presided over the meeting at Writers' Buildings.
"We have already said that the government will not acquire land forcibly. But the government will always encourage those who have land and who want to set up industries here. We have been saying that if the projects are acceptable to the chief minister, all applications to set up industries will be approved," Chatterjee said.
Industries minister Partha Chatterjee said after the meeting the group of ministers responded positively to the applications of the four companies for setting up industrial units in the state. "We are also reconsidering the application of Sobha Ispat," Chatterjee said. Chief minister Mamata Banerjee presided over the meeting at Writers' Buildings.
"We have already said that the government will not acquire land forcibly. But the government will always encourage those who have land and who want to set up industries here. We have been saying that if the projects are acceptable to the chief minister, all applications to set up industries will be approved," Chatterjee said.
India to host world farm congress next year
Hyderabad: After the prestigious 19-day Convention on Biological Diversity (CBD), India is set to host the World Agriculture Congress next year. The theme will be ‘reshaping agriculture for a sustainable future’. It will become the first Asian nation to host the biennial Congress.
A Group of Ministers from the State, formed to oversee the event, met on Saturday to discuss a plan of action for its smooth conduct , slated for November 2013.
They were briefed about the upcoming event and its objectives by V. Nagi Reddy, Principal Secretary (Agriculture) and Aldas Janaiah, who is a member of the Agricultural Forum and a senior scientist with Acharya N. G. Ranga Agriculture University .
The Group of Ministers has decided to convene a meeting of all State Agriculture Ministers in the country on October 24 to discuss the event to mark the visit of James B. Bolger, Honorary Chairman of the World Agriculture Forum, to Hyderabad. The ministers have asked the officials to prepare an agenda for the meeting.
Agriculture Minister Kanna Lakshminarayana and Information Technology Minister Ponnala Lakshmaiah participated in the meeting.
A Group of Ministers from the State, formed to oversee the event, met on Saturday to discuss a plan of action for its smooth conduct , slated for November 2013.
They were briefed about the upcoming event and its objectives by V. Nagi Reddy, Principal Secretary (Agriculture) and Aldas Janaiah, who is a member of the Agricultural Forum and a senior scientist with Acharya N. G. Ranga Agriculture University .
The Group of Ministers has decided to convene a meeting of all State Agriculture Ministers in the country on October 24 to discuss the event to mark the visit of James B. Bolger, Honorary Chairman of the World Agriculture Forum, to Hyderabad. The ministers have asked the officials to prepare an agenda for the meeting.
Agriculture Minister Kanna Lakshminarayana and Information Technology Minister Ponnala Lakshmaiah participated in the meeting.
India-Egypt bilateral stood at US$ 4.2 bn last fiscal
New Delhi: Bilateral trade between India and Egypt stood at US$ 4.2 billion from US$ 3.2 billion, registering an increase of 33 per cent, as per data released by the Egyptian Government for the financial year ended June 30, 2012.
Further, export to Egypt from India increased by 29.36 per cent, rising from US$ 1.5 billion to US$ 1.94 billion during the last year. Some of major items exported to Egypt included frozen meat, milled rice, cotton and synthetic yarn, light oils, sesame seeds, cathodes, carbon electrodes, and pneumatic rubber tyres.
During the same period, India's imports from Egypt grew 36.41 per cent from US$ 1.7 billion to US$ 2.3 billion. Crude oil and liquefied natural gas (LNG) accounted for almost US$ 1.97 billion.
Currently, India is Egypt’s seventh largest trading partner.
Further, export to Egypt from India increased by 29.36 per cent, rising from US$ 1.5 billion to US$ 1.94 billion during the last year. Some of major items exported to Egypt included frozen meat, milled rice, cotton and synthetic yarn, light oils, sesame seeds, cathodes, carbon electrodes, and pneumatic rubber tyres.
During the same period, India's imports from Egypt grew 36.41 per cent from US$ 1.7 billion to US$ 2.3 billion. Crude oil and liquefied natural gas (LNG) accounted for almost US$ 1.97 billion.
Currently, India is Egypt’s seventh largest trading partner.
Saturday, October 13, 2012
Potential customers change mind after online research
Mumbai: Seven out of 10 users change their mind about financial products and brands after they research about the products on the Internet, says a study by Google India.
The category most affected due to online research is loans. As many as 75 per cent prospective home loan customers change their decision after a thorough research on the Net. This is 73 per cent in case of personal loans, the Google study notes. Insurance is another category influenced by online research, with 70 per cent customers changing their insurers for motor insurance, 70 per cent for health insurance and 69 per cent for life insurance.
The report was compiled by Google India by combining the Google search trends in India and an independent research report conducted by TNS Australia on the influence of Internet on the purchase decision of financial products by Indian Internet users.
“Given the reach of Internet to high-value customers and its influence on the decision making for financial products, we believe that financial services can create significant value by innovating on the digital medium and adopting an ‘online first’ approach to serve the needs of the digitally savvy customers,” said Rajan Anandan, managing director and VP sales and operations at Google India.
India has about 137 million Internet users, according to iCube-IMRB survey for July 2012. Of this, 99 million urban India users are active on the Internet. With users shifting their buying patterns based on online research, financial services need to adopt a new approach to engage and serve the needs of the digitally savvy customers.
The study points out that 25 million Internet users have bought at least one product online. Out of this, about 15 million do online banking. Banking queries have also grown significantly. Since 2008, banking queries have grown by 345 per cent, insurance by 265 per cent and investing by 268 per cent.
The BFSI (banking, financial services and insurance) sector spends about Rs 1,500 crore in advertisements annually. Of this, less than 10 per cent is for digital advertisement. Seventy-one per cent of Internet users who saw an ad on the TV opt for further research online, and 30 per cent end up buying a product. Whereas, 87 per cent who saw an advertisement on the Internet further researched the product on the web and 39 per cent actually bought it.
The other significant aspect of the study is the increasing use of mobile for finding about financial products. One in every 10 financial query comes from a mobile phone. In terms of percentage growth for search queries coming from mobile phones (banking queries grew at 85 per cent year-on-year (y-o-y), investment related queries grew 105 per cent y-o-y and insurance queries grew 75 per cent y-o-y). Investment-related queries in the mobile space are also the biggest category by search volume in the finance vertical.
The category most affected due to online research is loans. As many as 75 per cent prospective home loan customers change their decision after a thorough research on the Net. This is 73 per cent in case of personal loans, the Google study notes. Insurance is another category influenced by online research, with 70 per cent customers changing their insurers for motor insurance, 70 per cent for health insurance and 69 per cent for life insurance.
The report was compiled by Google India by combining the Google search trends in India and an independent research report conducted by TNS Australia on the influence of Internet on the purchase decision of financial products by Indian Internet users.
“Given the reach of Internet to high-value customers and its influence on the decision making for financial products, we believe that financial services can create significant value by innovating on the digital medium and adopting an ‘online first’ approach to serve the needs of the digitally savvy customers,” said Rajan Anandan, managing director and VP sales and operations at Google India.
India has about 137 million Internet users, according to iCube-IMRB survey for July 2012. Of this, 99 million urban India users are active on the Internet. With users shifting their buying patterns based on online research, financial services need to adopt a new approach to engage and serve the needs of the digitally savvy customers.
The study points out that 25 million Internet users have bought at least one product online. Out of this, about 15 million do online banking. Banking queries have also grown significantly. Since 2008, banking queries have grown by 345 per cent, insurance by 265 per cent and investing by 268 per cent.
The BFSI (banking, financial services and insurance) sector spends about Rs 1,500 crore in advertisements annually. Of this, less than 10 per cent is for digital advertisement. Seventy-one per cent of Internet users who saw an ad on the TV opt for further research online, and 30 per cent end up buying a product. Whereas, 87 per cent who saw an advertisement on the Internet further researched the product on the web and 39 per cent actually bought it.
The other significant aspect of the study is the increasing use of mobile for finding about financial products. One in every 10 financial query comes from a mobile phone. In terms of percentage growth for search queries coming from mobile phones (banking queries grew at 85 per cent year-on-year (y-o-y), investment related queries grew 105 per cent y-o-y and insurance queries grew 75 per cent y-o-y). Investment-related queries in the mobile space are also the biggest category by search volume in the finance vertical.
Dolce & Gabbana, Stella McCartney and Alexander McQueen plan JVs in India to open exclusive stores
New Delhi: Luxury fashion and lifestyle brands Dolce & Gabbana, Stella McCartney and Alexander McQueen are in talks to form joint ventures in India to sell their clothing, bags and shoes through exclusive stores.
"Dolce & Gabbana, Stella McCartney and Alexander McQueen want to have standalone stores in India and we are in talks with them to form joint ventures as these brands have cult following," Priya Sachdev, creative director of TSG International Marketing that operates multi-brand stores chain Kitsch, said. Kitsch is the exclusive distributor of all the three luxury brands in India.
"As consumer demand grows here, they want to have mono-brand stores for bigger presence, business and visibility," said Sachdev, a modelturned-entrepreneur who recently introduced Italian label Dolce & Gabanna in India with her sister Charu Sachdev. "We have been giving them good business."
Sachdev, however, clarified that the joint venture talks with the three brands at a preliminary stage. Italian designers Domenico Dolce and Stefano Gabbana started Dolce & Gabanna in 1985, while British designer Lee McQueen launched Alexander McQueen in 1992. Another British designer Stella McCartney, who does not use any leather or fur in her designs, launched her own fashion house in 2001.
Today, PPR Group owns Stella McCartney brand and owns 51 % in Alexander McQueen. The Indian luxury market is thriving. It is projected to reach $14.7 billion (Rs 81,423 crore) in 2015 from $5.8 billion (Rs 32,126 crore) in 2011, according to a CII-AT Kearney report on Indian Luxury. Analysts say there is an opportunity for international luxury companies to tap India's potential.
"The market is growing steadily and many brands want to have bigger businesses here," Arvind Singhal, chairman of consulting firm Technopak Advisors, said. "Unfortunately, in India there are very few multi-brand luxury formats," he added.
Meanwhile, TSG International Marketing plans to open two outlets by next year. Started in 2005, Kitsch currently has three outlets in Delhi, Mumbai and Pune. "By the end of this year we will have another store in Hyderabad and one more in Chennai by next year," Sachdev said. "We are also planning to bring more brands," she added.
Besides Dolce & Gabbana, Stella McCartney and Alexander McQueen, Kitsch's portfolio also includes YSL, Diane Von Furstenberg, Halston Heritage, Lanvin, Celine, MCQ, Herve Leger and Catherine Malandrino.
"Dolce & Gabbana, Stella McCartney and Alexander McQueen want to have standalone stores in India and we are in talks with them to form joint ventures as these brands have cult following," Priya Sachdev, creative director of TSG International Marketing that operates multi-brand stores chain Kitsch, said. Kitsch is the exclusive distributor of all the three luxury brands in India.
"As consumer demand grows here, they want to have mono-brand stores for bigger presence, business and visibility," said Sachdev, a modelturned-entrepreneur who recently introduced Italian label Dolce & Gabanna in India with her sister Charu Sachdev. "We have been giving them good business."
Sachdev, however, clarified that the joint venture talks with the three brands at a preliminary stage. Italian designers Domenico Dolce and Stefano Gabbana started Dolce & Gabanna in 1985, while British designer Lee McQueen launched Alexander McQueen in 1992. Another British designer Stella McCartney, who does not use any leather or fur in her designs, launched her own fashion house in 2001.
Today, PPR Group owns Stella McCartney brand and owns 51 % in Alexander McQueen. The Indian luxury market is thriving. It is projected to reach $14.7 billion (Rs 81,423 crore) in 2015 from $5.8 billion (Rs 32,126 crore) in 2011, according to a CII-AT Kearney report on Indian Luxury. Analysts say there is an opportunity for international luxury companies to tap India's potential.
"The market is growing steadily and many brands want to have bigger businesses here," Arvind Singhal, chairman of consulting firm Technopak Advisors, said. "Unfortunately, in India there are very few multi-brand luxury formats," he added.
Meanwhile, TSG International Marketing plans to open two outlets by next year. Started in 2005, Kitsch currently has three outlets in Delhi, Mumbai and Pune. "By the end of this year we will have another store in Hyderabad and one more in Chennai by next year," Sachdev said. "We are also planning to bring more brands," she added.
Besides Dolce & Gabbana, Stella McCartney and Alexander McQueen, Kitsch's portfolio also includes YSL, Diane Von Furstenberg, Halston Heritage, Lanvin, Celine, MCQ, Herve Leger and Catherine Malandrino.
'India mobile handset sales to touch 251 million units in 2013'
Mumbai: Mobile device sales in India are forecast to reach 251 million units in 2013, a 13.5 per cent rise over 2012 sales of 221 million units. The mobile handset market is expected to show steady growth through 2016 when end-user sales will surpass 326 million units, according to a study by Gartner.
“The Indian mobile phone market is competitive with more than 150 device manufacturers selling devices to consumers. Most of these manufacturers remain focussed on the low-cost feature phone market, which still constitutes over 91 per cent of overall mobile phone sales, offering a huge market to compete in,” said Anshul Gupta, principal research analyst at Gartner.
“The increase in share of smartphone device sales, declining sales to first-time buyers and the continuous focus of global manufacturers on the low-cost feature phone market, has put many of the 150-plus local and Chinese device manufacturers in survival mode. Many of them are already struggling to maintain a share in the growing market,” Gupta added.
Some of these local and Chinese manufacturers are building capabilities, distribution and brands as they prepare to compete with the big global players at a larger level covering broader consumer segments.
Manufacturers such as ZTE, Micromax, Karbonn Mobile, Huawei stand at sixth, seventh and twelfth in the Indian smartphone market in 1H12 and are constantly expanding their smartphone portfolio to compete at a larger level, with big global manufacturers Samsung and Nokia, which held the first and second position respectively.
Samsung’s brand strength and wide device portfolio has allowed it to take advantage of the high growth opportunities in Indian market. Samsung’s share has risen from 15 per cent in the first quarter of 2011 to 49.8 per cent in 2Q12. If Samsung continues this strong growth, it could end 2012 with more than 60 per cent share — exactly where Nokia was at the start of 2011.
“The Indian mobile phone market is competitive with more than 150 device manufacturers selling devices to consumers. Most of these manufacturers remain focussed on the low-cost feature phone market, which still constitutes over 91 per cent of overall mobile phone sales, offering a huge market to compete in,” said Anshul Gupta, principal research analyst at Gartner.
“The increase in share of smartphone device sales, declining sales to first-time buyers and the continuous focus of global manufacturers on the low-cost feature phone market, has put many of the 150-plus local and Chinese device manufacturers in survival mode. Many of them are already struggling to maintain a share in the growing market,” Gupta added.
Some of these local and Chinese manufacturers are building capabilities, distribution and brands as they prepare to compete with the big global players at a larger level covering broader consumer segments.
Manufacturers such as ZTE, Micromax, Karbonn Mobile, Huawei stand at sixth, seventh and twelfth in the Indian smartphone market in 1H12 and are constantly expanding their smartphone portfolio to compete at a larger level, with big global manufacturers Samsung and Nokia, which held the first and second position respectively.
Samsung’s brand strength and wide device portfolio has allowed it to take advantage of the high growth opportunities in Indian market. Samsung’s share has risen from 15 per cent in the first quarter of 2011 to 49.8 per cent in 2Q12. If Samsung continues this strong growth, it could end 2012 with more than 60 per cent share — exactly where Nokia was at the start of 2011.
Telecom tower business gets infrastructure status, investments may soar
New Delhi: The government has granted infrastructure status to the telecom tower provider industry, a move that is likely to ensure multiple benefits to the sector as well as boost investments.
Announcing the decision, telecom ministerKapil Sibal said the infrastructure status will make tower providers eligible for viability gap funding, higher limit on external commercial borrowing, lower import duties and exemptions on excise duty on telecom infrastructure equipment.
Companies like Bharti Infratel, Indus Towers and Reliance Infratel will get accelerated depreciation, which will encourage more investments in the sector, he said. Tower providers will also get softer lending rates at 3-4% on loan terms of 10-15 years compared to the market borrowing rates of 12-13% over 5-7 years. Companies will be given a tax holiday under section 80-IA of the Income Tax Act, the minister said, adding that the industry body will have to talk to the Reserve Bank of India to ensure the benefits.
"We have kept the door wide open and now it is for you to negotiate and explain your position to the institutions concerned that you have put in place a system that will give great encouragement to the industry," Sibal said. The Cabinet Committee on Infrastructure has included telecom towers along with fixed line in the harmonised list of sub sectors. An implementation committee comprising representatives of RBI, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and the Planning Commission has been formed.
Industry body Tower and Infrastructure Provider's Association (Taipa) will work with the implementation committee to bring in commonality of interest to ensure rapid progression, chairman Akhil Gupta said.
He said the move to include tower companies in the unified licensing regime, under which they would have to pay part of their revenues as licence fee, was welcome. He, however, said tower companies should left out of the licensing regime completely.
"By December, the unified licence regime will be in place and all issues will be resolved," Sibal said, indicating that issues including that of double taxation emerging from bringing tower companies under the licensing regime, would be sorted out.
The telecom department has also issued draft guidelines for the states to follow a harmonised approach to levy penalties on mobile phone companies. "Madhya Pradesh came out with a comprehensive policy, which can become a benchmark for other states. We have asked DoT to convene a meeting with all state secretaries," Gupta said, adding that a standardised policy could be put in place for all states within two months.
He said the tower industry was looking at eliminating the usage of diesel to power telecom towers. It has begun the process by conducting a pilot programme at 1,000 sites that will bring back results of using alternate energy resources like solar power and natural gas by March next year. Taipa also issued two letters of intent to Mahindra & Mahindra and Creative Mark Engineering Solutions, which will work as renewable energy service companies to set up renewable energy-based power plants near the telecom towers sites and sell them power on a pay-per-use model.
Announcing the decision, telecom ministerKapil Sibal said the infrastructure status will make tower providers eligible for viability gap funding, higher limit on external commercial borrowing, lower import duties and exemptions on excise duty on telecom infrastructure equipment.
Companies like Bharti Infratel, Indus Towers and Reliance Infratel will get accelerated depreciation, which will encourage more investments in the sector, he said. Tower providers will also get softer lending rates at 3-4% on loan terms of 10-15 years compared to the market borrowing rates of 12-13% over 5-7 years. Companies will be given a tax holiday under section 80-IA of the Income Tax Act, the minister said, adding that the industry body will have to talk to the Reserve Bank of India to ensure the benefits.
"We have kept the door wide open and now it is for you to negotiate and explain your position to the institutions concerned that you have put in place a system that will give great encouragement to the industry," Sibal said. The Cabinet Committee on Infrastructure has included telecom towers along with fixed line in the harmonised list of sub sectors. An implementation committee comprising representatives of RBI, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and the Planning Commission has been formed.
Industry body Tower and Infrastructure Provider's Association (Taipa) will work with the implementation committee to bring in commonality of interest to ensure rapid progression, chairman Akhil Gupta said.
He said the move to include tower companies in the unified licensing regime, under which they would have to pay part of their revenues as licence fee, was welcome. He, however, said tower companies should left out of the licensing regime completely.
"By December, the unified licence regime will be in place and all issues will be resolved," Sibal said, indicating that issues including that of double taxation emerging from bringing tower companies under the licensing regime, would be sorted out.
The telecom department has also issued draft guidelines for the states to follow a harmonised approach to levy penalties on mobile phone companies. "Madhya Pradesh came out with a comprehensive policy, which can become a benchmark for other states. We have asked DoT to convene a meeting with all state secretaries," Gupta said, adding that a standardised policy could be put in place for all states within two months.
He said the tower industry was looking at eliminating the usage of diesel to power telecom towers. It has begun the process by conducting a pilot programme at 1,000 sites that will bring back results of using alternate energy resources like solar power and natural gas by March next year. Taipa also issued two letters of intent to Mahindra & Mahindra and Creative Mark Engineering Solutions, which will work as renewable energy service companies to set up renewable energy-based power plants near the telecom towers sites and sell them power on a pay-per-use model.
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