New Delhi: Honda Car India, the wholly-owned subsidiary of Honda Motor Co. of Japan will set up a greenfield diesel engine factory at its second industrial location in Rajasthan that have largely remained unutilised over the past five years.
The Indian subsidiary will debut Honda's first global compact car in diesel in 2013 fired by the locally-manufactured engines.
This sub-four metre sedan, Amaze, based on its Brio hatchback model - Honda's strategic model for Asia - would have a 1.5-litre i-DTEC diesel based on its 'Earth Dreams' diesel technology.
Honda Car's senior V-P (sales & marketing) Jnaneswar Sen confirmed the corporate plans for a new diesel engine plant exclusively for the Indian market.
"We plan to launch the diesel car at a very aggressive price that would require high level of localisation in the Indian market. We have finalised plans to set up a diesel engine plant at Tapukara in Rajasthan by next year but the finer details regarding capacity and investments are yet to be worked out," he said.
The company would start assembling a 1.5-litre diesel engine by early next year that would initially debut in the Amaze sedan which would compete with Maruti topseller Dzire & Tata Motors' Indigo.
The same engines would also come in Honda's other cars like the new Jazz and the new City sedan that would roll out some time in 2014 for the Indian market.
"The diesel engine would not power any of the existing compact cars like the current models of Brio, Jazz and the City sedan. We will have this diesel technology reserved only for the new cars that would be introduced over the next 2-3 years," Sen added.
According to three different component manufacturers, Honda plans to introduce Amaze in the price range of 5-8 lakh by increasing cost competitiveness through local sourcing and production. "We have been working with Honda to develop components for its new diesel engine.
The component supplies for making these engines would resume early next year as the car (Amaze) is expected to debut in mid-2013," said a Delhi-based auto component maker.
According to company sources, Honda would also supply some of the engine components from the Rajasthan plant to its UK subsidiary. It already makes higher configuration diesel engines in the UK, which are strapped to its popular cars like the Accord and the CR-V sporty utility vehicle.
However, the diesel engine would not be fitted in Accord and CR-V models in India. Amaze, the entry-level sedan, would also be rolled out in a 1.2-litre petrol engine that currently powers its Jazz and the Brio hatchback.
Success in my Habit
Thursday, November 29, 2012
Tata Motors introduces passenger cars in Bangladesh
Mumbai: Tata Motors has introduced two sedans and a hatchback in Bangladesh, marking its foray into the country’s passenger car segment.
The Tata group company has launched its compact sedan Tata Indigo eCS, luxury sedan Tata Indigo Manza and hatchback Tata Indica Vista in the country.
“Our 40-year association with Bangladesh has given us an insight into the aspiration of the country’s motorists. They will be central to our business – we will delight them with the performance of our cars and the comfort and excellence of our service, and establish ourselves as we have in commercial vehicles since 1972,” Tata Motors Managing Director Karl Slym said.
To begin with, the passenger cars will be available at a showroom in the country’s capital, Dhaka. By 2013, three other cities will be covered, with a showroom each, the company said in a statement.
Tata Motors, a market leader in with a 70 per cent market share, has about 53,000 Tata commercial vehicles on Bangladesh roads. The Tata group company had introduced its buses in the country in 1972
The Tata group company has launched its compact sedan Tata Indigo eCS, luxury sedan Tata Indigo Manza and hatchback Tata Indica Vista in the country.
“Our 40-year association with Bangladesh has given us an insight into the aspiration of the country’s motorists. They will be central to our business – we will delight them with the performance of our cars and the comfort and excellence of our service, and establish ourselves as we have in commercial vehicles since 1972,” Tata Motors Managing Director Karl Slym said.
To begin with, the passenger cars will be available at a showroom in the country’s capital, Dhaka. By 2013, three other cities will be covered, with a showroom each, the company said in a statement.
Tata Motors, a market leader in with a 70 per cent market share, has about 53,000 Tata commercial vehicles on Bangladesh roads. The Tata group company had introduced its buses in the country in 1972
Agribusiness: India, New Zealand sign MoU
Chandigarh: India and New Zealand are all set to increase mutual collaboration and partnerships in the agribusiness sector with the signing of Memorandum of Understanding (MoU) on Tuesday in Chandigarh. The collaboration will allow both to share the best practices and technologies, while building agribusiness connections between the two countries.
Through the MoU, CII Agro Tech and Fieldays would avail reciprocal rights to attend and exhibit at each others' agri and business shows, share intellectual property, host VIPs, delegations and promote business collaborations. The signing of MoU recognizes CII and Fieldays status as leading international facilitators of agribusiness expansion and innovation.
New Zealand minister for primary industries David Carter expressed keen desire to setup joint ventures in Punjab in various areas of industry, agriculture and milk processing sector to become partners in the progress of Punjab. He said Punjab and New Zealand share the common expertise in agriculture sector and New Zealand can coordinate with Punjab by offering it latest agriculture technology and techniques to prolong shelf life of agriculture products.
Offering to setup "joint farms" in Punjab, the minister said these agriculture farms could be pilot projects to showcase the latest technology in agriculture sector, adding that the focus of New Zealand agriculture sector was on increasing productivity and profitability to make the sector self-sustaining.
Minister of IT, food, civil supplies and food processing in Punjab, Adaish Partap Singh Kairon said, "By entering into this memorandum we look forward to progress. We will be happy to work for relaxed taxes." He added that the international airport in Amritsar would prove as an outlet for trade. With this CII's Agro Tech 2012 entered into a MoU with the largest agriculture show in the Southern Hemisphere -New Zealand National Agricultural Fieldays.
Through the MoU, CII Agro Tech and Fieldays would avail reciprocal rights to attend and exhibit at each others' agri and business shows, share intellectual property, host VIPs, delegations and promote business collaborations. The signing of MoU recognizes CII and Fieldays status as leading international facilitators of agribusiness expansion and innovation.
New Zealand minister for primary industries David Carter expressed keen desire to setup joint ventures in Punjab in various areas of industry, agriculture and milk processing sector to become partners in the progress of Punjab. He said Punjab and New Zealand share the common expertise in agriculture sector and New Zealand can coordinate with Punjab by offering it latest agriculture technology and techniques to prolong shelf life of agriculture products.
Offering to setup "joint farms" in Punjab, the minister said these agriculture farms could be pilot projects to showcase the latest technology in agriculture sector, adding that the focus of New Zealand agriculture sector was on increasing productivity and profitability to make the sector self-sustaining.
Minister of IT, food, civil supplies and food processing in Punjab, Adaish Partap Singh Kairon said, "By entering into this memorandum we look forward to progress. We will be happy to work for relaxed taxes." He added that the international airport in Amritsar would prove as an outlet for trade. With this CII's Agro Tech 2012 entered into a MoU with the largest agriculture show in the Southern Hemisphere -New Zealand National Agricultural Fieldays.
Mayor of London keen on investments from India
New Delhi: Leading a business delegation to India Mr Boris Johnson, Mayor of London, has sought investments from the country. Mr Johnson also asked India to open more areas like insurance for foreign investors.
As per the Mayor, businessmen of both the countries can collaborate in sectors like education, film-making, medical sciences and infrastructure development. “There is still so much which we can do. In every sector, I see a scope for Indian businessmen,” said Mr Johnson.
Business and financial city of London provides huge opportunities for Indian businessmen, added Mr Johnson. “There is economic complementarity between Britain and India and between London and India. I believe the scope for partnership is limitless. Come to London. This city is open for investments. We are open for trade and investments with India,” said Johnson.
Highlighting on the India-EU free trade pact, Mr Johnson said that the ongoing negotiations between India and European Union (EU) for a comprehensive free trade agreement (FTA) would be mutually beneficial for both sides.
The India-EU free trade agreement, officially termed as the Bilateral Trade and Investment Agreement (BTIA), seeks to greatly reduce the tariffs on goods and liberalise services and investments provisions. The bilateral trade between India and the UK stood at US$ 16.25 billion in 2011-12.
Mr Johnson also expressed his opinion on the visa issue. The Mayor said that London welcomes skilled people from all over the world including India.
According to Mr James Bevan, High Commissioner of UK to India, Britain offers best educational institutes and “a great place to do business’’. Over 70 Indian companies are listed on the London Stock Exchange. Firms like HCL have presence in London.
As per the Mayor, businessmen of both the countries can collaborate in sectors like education, film-making, medical sciences and infrastructure development. “There is still so much which we can do. In every sector, I see a scope for Indian businessmen,” said Mr Johnson.
Business and financial city of London provides huge opportunities for Indian businessmen, added Mr Johnson. “There is economic complementarity between Britain and India and between London and India. I believe the scope for partnership is limitless. Come to London. This city is open for investments. We are open for trade and investments with India,” said Johnson.
Highlighting on the India-EU free trade pact, Mr Johnson said that the ongoing negotiations between India and European Union (EU) for a comprehensive free trade agreement (FTA) would be mutually beneficial for both sides.
The India-EU free trade agreement, officially termed as the Bilateral Trade and Investment Agreement (BTIA), seeks to greatly reduce the tariffs on goods and liberalise services and investments provisions. The bilateral trade between India and the UK stood at US$ 16.25 billion in 2011-12.
Mr Johnson also expressed his opinion on the visa issue. The Mayor said that London welcomes skilled people from all over the world including India.
According to Mr James Bevan, High Commissioner of UK to India, Britain offers best educational institutes and “a great place to do business’’. Over 70 Indian companies are listed on the London Stock Exchange. Firms like HCL have presence in London.
100% FDI Permitted for Cold Storage Facilities
All India Coordinated Research Project on Post-harvest Technology (ICAR) conducted a study at National level and printed the report in September, 2012. As per the study, estimated monetary value of harvest, post-harvest losses of horticultural, agricultural and livestock produce, in the country was Rs. 44143 crore at price and production value for the year 2007 - 08.
In order to increase Foreign Direct Investment (FDI) in cold storage sector, Government has permitted 100% FDI under automatic route as per the extant FDI policy. This policy mandates minimum investment of US$ 100 million with at least 50% of total FDI being invested in 'back-end infrastructure' within three years of the first tranche of FDI, where 'back-end infrastructure' will include capital expenditure on all activities, excluding that on front-end units.
The Government is implementing following schemes which have components for increasing cold storage capacity aimed at checking wastage of horticulture and agriculture produce:
National Horticulture Mission.
Horticulture Mission for North East and Himalayan States.
National Horticulture Board.
Scheme of Ministry of Food Processing Industries.
Scheme of Agricultural Processed Food Products Export Development Authority.
National Cooperative Development Corporation.
Further, Government has included capital investment in creation of modern storage capacity including cold chains and post-harvest storage as an eligible sector for viability gap funding under "support to public private partnership in Infrastructure scheme".
This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.
In order to increase Foreign Direct Investment (FDI) in cold storage sector, Government has permitted 100% FDI under automatic route as per the extant FDI policy. This policy mandates minimum investment of US$ 100 million with at least 50% of total FDI being invested in 'back-end infrastructure' within three years of the first tranche of FDI, where 'back-end infrastructure' will include capital expenditure on all activities, excluding that on front-end units.
The Government is implementing following schemes which have components for increasing cold storage capacity aimed at checking wastage of horticulture and agriculture produce:
National Horticulture Mission.
Horticulture Mission for North East and Himalayan States.
National Horticulture Board.
Scheme of Ministry of Food Processing Industries.
Scheme of Agricultural Processed Food Products Export Development Authority.
National Cooperative Development Corporation.
Further, Government has included capital investment in creation of modern storage capacity including cold chains and post-harvest storage as an eligible sector for viability gap funding under "support to public private partnership in Infrastructure scheme".
This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.
Tuesday, November 27, 2012
Dubai-based Jumeirah inks maiden India luxury hotel management deal
Mumbai: Jumeirah Group, the global hospitality company and a member of Dubai Holding, has forayed into India with its maiden management agreement to operate a luxury hotel at Lower Parel in central Mumbai. The hotel is part of a major new development in the Lower Parel district of the city and is expected to open in 2017, the Dubai-based company said in a release.
The agreement represents the first phase of Jumeirah Group's expansion into India. It is currently in advanced negotiations on potential projects for hotels and resorts in other key destinations in India, Jumeirah said.
The first property will consist of 470 spacious rooms, suites and serviced apartments, along with wide range of restaurants and bars. "We will unveil the name of the hotel and further details about the Mumbai project at the next stage of the property's development in mid-2013," said a company spokesperson.
"The demand for five-star hotels in the Indian market has been robust and we are delighted to have initiated the first phase of our expansion into India with this landmark project in Mumbai," said Gerald Lawless, president and group CEO of Jumeirah Group.
The group currently operates 20 luxury hotels and serviced apartments, including 10 in the UAE, seven in Europe, two in the Maldives and one in China. A further 15 hotels are also under development.
The agreement represents the first phase of Jumeirah Group's expansion into India. It is currently in advanced negotiations on potential projects for hotels and resorts in other key destinations in India, Jumeirah said.
The first property will consist of 470 spacious rooms, suites and serviced apartments, along with wide range of restaurants and bars. "We will unveil the name of the hotel and further details about the Mumbai project at the next stage of the property's development in mid-2013," said a company spokesperson.
"The demand for five-star hotels in the Indian market has been robust and we are delighted to have initiated the first phase of our expansion into India with this landmark project in Mumbai," said Gerald Lawless, president and group CEO of Jumeirah Group.
The group currently operates 20 luxury hotels and serviced apartments, including 10 in the UAE, seven in Europe, two in the Maldives and one in China. A further 15 hotels are also under development.
GlaxoSmithKline to invest Rs 5,215cr in Indian arm
Mumbai: British drug giant GlaxoSmithKline (GSK) will invest around Rs 5,215 crore ($941 million) to increase stake in its Indian consumer healthcare subsidiary, GlaxoSmithKline Consumer Healthcare (GSKCH), to 75% through a voluntary open offer.
This is among the largest MNC share buybacks in the recent past, and also signals GSK's bullish sentiments in a key growth market. Swiss engineering giant ABB had showed up with a $965-million buyback offer two years ago in another instance of an MNC parent boosting its economic interest in the India unit.
GSK, which currently holds 43.2% in GlaxoSmithKline Consumer Healthcare (GSKCH), will pick up 31.8% of the total outstanding shares of the publicly listed Indian company at a price of Rs 3,900 per share. This represents a premium of approximately 28% to the NSE closing share price on Friday and 22% to the 12-month high on the Bombay Stock Exchange.
The announcement sent the GSKCH stock to a record high of Rs 3,652 on the BSE on Monday, up 20% or Rs 609 over the previous close of Rs 3,043.
"GSK Consumer Healthcare is a well established business in India and its leading product, Horlicks, is an iconic household brand. This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," David Redfern, chief strategy officer, GSK, said in a media release.
GSK's consumer healthcare business in India generated over Rs 2,800 crore (approximately £380 million at 2011 average exchange rates) turnover with 19% compound annual growth rate over the past five years. GSK had committed more than $2.5 billion earlier this year to buy back shares in its emerging market units.
"It reflects the confidence that the parent company has in emerging markets as well as in GSKCH, which is growing at a healthy rate. There is no doubt the parent would be looking at further entrenching itself in this market and could even launch more products from its stable going forward," said an analyst from an Indian brokerage.
Besides Horlicks and Boost, which are growing at a healthy pace, the company also manufactures and markets Viva and Maltova apart from other brands in diverse categories, such as Eno, Crocin, Iodex, BreatheRight and Sensodyne. GSKCH has a strong marketing and distribution network in India comprising over 600 distributors and a direct coverage of over 7.5 lakh retail outlets.
Among other multinationals operating in India, GSKCH was the only one where the parent holding was below 51%. Post the offer, GSKCH would change from being an associate company to a subsidiary of GSK.
This is among the largest MNC share buybacks in the recent past, and also signals GSK's bullish sentiments in a key growth market. Swiss engineering giant ABB had showed up with a $965-million buyback offer two years ago in another instance of an MNC parent boosting its economic interest in the India unit.
GSK, which currently holds 43.2% in GlaxoSmithKline Consumer Healthcare (GSKCH), will pick up 31.8% of the total outstanding shares of the publicly listed Indian company at a price of Rs 3,900 per share. This represents a premium of approximately 28% to the NSE closing share price on Friday and 22% to the 12-month high on the Bombay Stock Exchange.
The announcement sent the GSKCH stock to a record high of Rs 3,652 on the BSE on Monday, up 20% or Rs 609 over the previous close of Rs 3,043.
"GSK Consumer Healthcare is a well established business in India and its leading product, Horlicks, is an iconic household brand. This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," David Redfern, chief strategy officer, GSK, said in a media release.
GSK's consumer healthcare business in India generated over Rs 2,800 crore (approximately £380 million at 2011 average exchange rates) turnover with 19% compound annual growth rate over the past five years. GSK had committed more than $2.5 billion earlier this year to buy back shares in its emerging market units.
"It reflects the confidence that the parent company has in emerging markets as well as in GSKCH, which is growing at a healthy rate. There is no doubt the parent would be looking at further entrenching itself in this market and could even launch more products from its stable going forward," said an analyst from an Indian brokerage.
Besides Horlicks and Boost, which are growing at a healthy pace, the company also manufactures and markets Viva and Maltova apart from other brands in diverse categories, such as Eno, Crocin, Iodex, BreatheRight and Sensodyne. GSKCH has a strong marketing and distribution network in India comprising over 600 distributors and a direct coverage of over 7.5 lakh retail outlets.
Among other multinationals operating in India, GSKCH was the only one where the parent holding was below 51%. Post the offer, GSKCH would change from being an associate company to a subsidiary of GSK.
OVL to buy ConocoPhillips’ 8.4% in Kazakh field for $5 bn
New Delhi: In its biggest acquisition ever, ONGC Videsh Ltd (OVL) has agreed to invest around $5 billion to acquire ConocoPhillips’ 8.4 per cent stake in the Kashagan field off North Caspian Sea. The deal is expected to be closed during the first half of next calendar year.
Among OVL’s other large deals, it had acquired Imperial Energy in 2009 for $2.1 billion. The latest acquisition will help it offset the drop in production from Sudan and Syria which pulled its output down by more than seven per cent in 2011-12.
In a statement, the company said: “ONGC Videsh has finalised definitive agreements for acquisition of the 8.4 per cent participating interest (PI) of ConocoPhillips in the North Caspian Sea production-sharing agreement that includes Kashagan Field in Kazakhstan. The acquisition is subject to relevant government, regulatory approvals, priority rights and consortium pre-emption rights.”
NYSE-listed ConocoPhillips is the third-largest energy company in the US and the fifth-largest refiner in the world. In a statement on its website, it said “expected proceeds are approximately $5 billion, representing the purchase price plus expected working capital and customary adjustments at closing”.
“The proposed sale of its Kashagan interest is part of ConocoPhillips’ plan to increase value for shareholders through focused capital investments and a commitment to deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions,” it added.
“The sale of this quality asset is an important component of our ongoing strategic asset disposition programme,” said Don Wallette, executive vice-president (commercial, business development and corporate planning), ConocoPhillips.
The acquisition would mark OVL’s entry into the largest oil-proven North Caspian Sea of Kazakhstan. The Kashagan field, located in the shallow waters of the Kazakh North Caspian Sea, is the world’s largest current development project. Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz — each with 16.81 per cent PI, while ConocoPhillips has 8.40 per cent and Inpex 7.56 per cent PI.
Among OVL’s other large deals, it had acquired Imperial Energy in 2009 for $2.1 billion. The latest acquisition will help it offset the drop in production from Sudan and Syria which pulled its output down by more than seven per cent in 2011-12.
In a statement, the company said: “ONGC Videsh has finalised definitive agreements for acquisition of the 8.4 per cent participating interest (PI) of ConocoPhillips in the North Caspian Sea production-sharing agreement that includes Kashagan Field in Kazakhstan. The acquisition is subject to relevant government, regulatory approvals, priority rights and consortium pre-emption rights.”
NYSE-listed ConocoPhillips is the third-largest energy company in the US and the fifth-largest refiner in the world. In a statement on its website, it said “expected proceeds are approximately $5 billion, representing the purchase price plus expected working capital and customary adjustments at closing”.
“The proposed sale of its Kashagan interest is part of ConocoPhillips’ plan to increase value for shareholders through focused capital investments and a commitment to deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions,” it added.
“The sale of this quality asset is an important component of our ongoing strategic asset disposition programme,” said Don Wallette, executive vice-president (commercial, business development and corporate planning), ConocoPhillips.
The acquisition would mark OVL’s entry into the largest oil-proven North Caspian Sea of Kazakhstan. The Kashagan field, located in the shallow waters of the Kazakh North Caspian Sea, is the world’s largest current development project. Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz — each with 16.81 per cent PI, while ConocoPhillips has 8.40 per cent and Inpex 7.56 per cent PI.
$6-billion pacts: Reliance Energy, Lanco, NIIT and Ramky group ink agreements with Chinese companies
New Delhi: Indian firms, including Reliance Energy, Lanco Group, NIIT and Ramky group, on Monday inked agreements with Chinese firms for investment worth nearly $6 billion in India and China.
The investments showcase the attempts by the governments of Asia's two largest economies to intensify economic cooperation.
"We must aim at a magnitude and intensity of (economic) engagement appropriate for the world's two most populous nations," said Planning Commission deputy chairman Montek Singh Ahluwalia giving details of the deliberations as part of India-China strategic dialogue.
The agreements include a plan to develop a 2,500 MW renewable energy project envisaging an investment of $3 billion by Reliance Power and China's Ming Yang Wind Power Group.
NIIT and Province of Hainan will together set up an IT technology park in Hainan with an investment of $800 million.
China Development Bank will syndicate a $2 billion (over Rs 11,000 crore) loan for Lanco Infratech's two power projects, which will help the cash-strapped group.
These agreements are part of the business-2-business exchange included in the India-China strategic economic dialogue spearheaded by the Planning Commission and its Chinese counterpart National Development Reform Commission (NDRC).
The development comes in the backdrop of fresh security concerns over Chinese investments in certain strategic sectors such as telecom as well as tension over China showing some parts of India as its own in its maps.
Ahluwalia, however, said both sides discussed deepening of bilateral economic cooperation and security related issues did not figure.
"Security issues are relevant not just with Chinese investment but with that of all other countries. No specific issue regarding security was raised," he said.
The Chinese delegation was headed by NDRC chairman Zhang Ping and the visit is being considered significant in New Delhi as it comes soon after the change in guard in Beijing.
Ahluwalia said there was immense scope for cooperation between the two countries in infrastructure sector. He also pointed at the wide trade imbalance, tilted in favour of China, and said the Five-Year Plan will help address market access challenges. Both sides also signed MoUs to extend technical cooperation in Railways, Planning Commission and NDRC and Nasscom and China Software Industry Association.
The investments showcase the attempts by the governments of Asia's two largest economies to intensify economic cooperation.
"We must aim at a magnitude and intensity of (economic) engagement appropriate for the world's two most populous nations," said Planning Commission deputy chairman Montek Singh Ahluwalia giving details of the deliberations as part of India-China strategic dialogue.
The agreements include a plan to develop a 2,500 MW renewable energy project envisaging an investment of $3 billion by Reliance Power and China's Ming Yang Wind Power Group.
NIIT and Province of Hainan will together set up an IT technology park in Hainan with an investment of $800 million.
China Development Bank will syndicate a $2 billion (over Rs 11,000 crore) loan for Lanco Infratech's two power projects, which will help the cash-strapped group.
These agreements are part of the business-2-business exchange included in the India-China strategic economic dialogue spearheaded by the Planning Commission and its Chinese counterpart National Development Reform Commission (NDRC).
The development comes in the backdrop of fresh security concerns over Chinese investments in certain strategic sectors such as telecom as well as tension over China showing some parts of India as its own in its maps.
Ahluwalia, however, said both sides discussed deepening of bilateral economic cooperation and security related issues did not figure.
"Security issues are relevant not just with Chinese investment but with that of all other countries. No specific issue regarding security was raised," he said.
The Chinese delegation was headed by NDRC chairman Zhang Ping and the visit is being considered significant in New Delhi as it comes soon after the change in guard in Beijing.
Ahluwalia said there was immense scope for cooperation between the two countries in infrastructure sector. He also pointed at the wide trade imbalance, tilted in favour of China, and said the Five-Year Plan will help address market access challenges. Both sides also signed MoUs to extend technical cooperation in Railways, Planning Commission and NDRC and Nasscom and China Software Industry Association.
India and Sweden Sign Social Security Agreement
A social security agreement between India and Sweden was signed here today. The agreement was signed by Shri Vayalar Ravi, Union Minister of Overseas Indian Affairs from the Indian side and Mr. Ulf Kristersson, Minister for Social Security of Sweden from Swedish side. Speaking on the occasion, Shri Ravi said this agreement will help both the countries in more investment and work opportunities for nationals of India and Sweden. The Minister said this agreement will encourage more and more Indians to go to Sweden for employment opportunities. Mr. Kristersson said that 156 Swedish companies are operating in India and expressed the hope that this agreement will encourage Swedish people to come in large numbers to India. He said, India is the first Asian countries with which Sweden has signed this type of agreement.
The Social Security Agreement will enhance cooperation on social security between the two countries. The Agreement will provide following benefits to Indian nationals working in Sweden:
For short term contract up to two years, no social contribution would need to be paid under the Swedish law by the detached workers provided they continue to make social security payment in India.
The above benefits shall be available even when the Indian company sends its employees to Sweden from a third country.
Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Sweden.
The self-employed Indians in Sweden would also be entitled to export of social security benefit of their relocation to India.
The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility of social security benefits.
There are about 18,000 Overseas Indians in Sweden, most of whom are working as professional and self-employed. However, there is a huge potential for Indian workers to take employment in Sweden owing to the huge labour supply gap in the market. As such, a bilateral Social Security Agreement with Sweden is a significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries. India has singed similar agreements with Belgium, Germany, France, Switzerland, Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, the Republic of Korea, Norway, Finland, Canada and Japan.
The Social Security Agreement will enhance cooperation on social security between the two countries. The Agreement will provide following benefits to Indian nationals working in Sweden:
For short term contract up to two years, no social contribution would need to be paid under the Swedish law by the detached workers provided they continue to make social security payment in India.
The above benefits shall be available even when the Indian company sends its employees to Sweden from a third country.
Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Sweden.
The self-employed Indians in Sweden would also be entitled to export of social security benefit of their relocation to India.
The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility of social security benefits.
There are about 18,000 Overseas Indians in Sweden, most of whom are working as professional and self-employed. However, there is a huge potential for Indian workers to take employment in Sweden owing to the huge labour supply gap in the market. As such, a bilateral Social Security Agreement with Sweden is a significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries. India has singed similar agreements with Belgium, Germany, France, Switzerland, Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, the Republic of Korea, Norway, Finland, Canada and Japan.
Monday, November 26, 2012
UK’s CDC Group looks to invest $500 mn through private equity route in India
Bengaluru: The CDC Group , a wholly-owned development finance institution of the UK government’s Department for International Development, is looking to invest around $500 million in India through the private equity route.
The fund, which has had good exposure in India through the fund-of-funds ((FoF) route, would now be parallelly looking to invest directly in Indian businesses.
A spokesperson for the CDC Group said that they were looking to invest $1 billion over the next four-five years in India and the split would be more or less equally distributed between the FoF route and direct investments in Indian companies.
“We have hired a senior private equity professional, Srinivasan Nagarajan , as our regional director in India, who will come on board next year. He will be involved in direct investments into Indian companies and also continue the relationship with the investment community in India,” the spokesperson told Business Standard.
The move to hire Nagarajan comes a few months after CDC’s Asia Managing director Anubha Shrivastava quit the company during early August. Nagarajan, however, is not a replacement for Anubha Shrivastava and CDC is expected to fill that position at the earliest.
CDC’s direct thrust in the Indian private equity sector is part of its recently-announced strategy through which it would provide debt and direct investment to businesses as well as acting as an FoF investor. CDC has net assets of £2.6 billion and invests in developing countries in South Asia and Africa.
CDC currently has capital at work in 152 funds managed by 80 fund managers. Some of the prominent PE funds which are active in India are Actis, New Silk Route, Ascent Capital, Baring Private Equity Partners, India Value Fund Advisors and Multiples Investment Advisors, among others. The spokesperson added that they would continue to work with various private equity funds and would not be competing with them, with CDC possibly be co-investing in some cases as well.
The push into India’s private equity industry by CDC comes at a time when many Indian and global PE funds are struggling to find investments and even if they have found some, it is proving to be difficult to find good exits.
Sanjeev Krishan, leader, private equity, at Pricewaterhouse-Coopers India said the third quarter of 2012 was an important period in which the investor community felt both despair and hope. “Some positive-sounding policy announcements towards the end of the quarter hopefully lifted investor confidence. While that may not result in heightened deal activity in the near term, it may bring the focus back on growth and create enough opportunities for equity investors in the future.
The Shome Committee recommendations have also been positively received by the investor community, and should the government continue to walk the talk, investor interest in India is bound to revive," he said.
The fund, which has had good exposure in India through the fund-of-funds ((FoF) route, would now be parallelly looking to invest directly in Indian businesses.
A spokesperson for the CDC Group said that they were looking to invest $1 billion over the next four-five years in India and the split would be more or less equally distributed between the FoF route and direct investments in Indian companies.
“We have hired a senior private equity professional, Srinivasan Nagarajan , as our regional director in India, who will come on board next year. He will be involved in direct investments into Indian companies and also continue the relationship with the investment community in India,” the spokesperson told Business Standard.
The move to hire Nagarajan comes a few months after CDC’s Asia Managing director Anubha Shrivastava quit the company during early August. Nagarajan, however, is not a replacement for Anubha Shrivastava and CDC is expected to fill that position at the earliest.
CDC’s direct thrust in the Indian private equity sector is part of its recently-announced strategy through which it would provide debt and direct investment to businesses as well as acting as an FoF investor. CDC has net assets of £2.6 billion and invests in developing countries in South Asia and Africa.
CDC currently has capital at work in 152 funds managed by 80 fund managers. Some of the prominent PE funds which are active in India are Actis, New Silk Route, Ascent Capital, Baring Private Equity Partners, India Value Fund Advisors and Multiples Investment Advisors, among others. The spokesperson added that they would continue to work with various private equity funds and would not be competing with them, with CDC possibly be co-investing in some cases as well.
The push into India’s private equity industry by CDC comes at a time when many Indian and global PE funds are struggling to find investments and even if they have found some, it is proving to be difficult to find good exits.
Sanjeev Krishan, leader, private equity, at Pricewaterhouse-Coopers India said the third quarter of 2012 was an important period in which the investor community felt both despair and hope. “Some positive-sounding policy announcements towards the end of the quarter hopefully lifted investor confidence. While that may not result in heightened deal activity in the near term, it may bring the focus back on growth and create enough opportunities for equity investors in the future.
The Shome Committee recommendations have also been positively received by the investor community, and should the government continue to walk the talk, investor interest in India is bound to revive," he said.
ISRO Designing GEO Imaging Satellite
New Delhi: Indian Space Research Organisation (ISRO) is designing a satellite – GEO Imaging Satellite (GISAT), which will be placed in geostationary orbit of 36,000 km. GISAT will provide near real time pictures of large areas of the country, under cloud free conditions, at frequent intervals. That is, selected sector-wise imaging every 5 minutes and entire Indian landmass every 30 minutes at 50m spatial resolution.
GISAT will carry a GEO Imager with multi-spectral (visible, near infra-red and thermal), multi-resolution (50m to 1.5 km) imaging instruments. It will provide pictures of the area of interest on near real time basis including border areas.
The above information was given by the Minister of State in the Ministry Personnel, Public Grievances & Pensions and in the Prime Minister’s Office, Shri V. Narayanasamy to the Parliament.
GISAT will carry a GEO Imager with multi-spectral (visible, near infra-red and thermal), multi-resolution (50m to 1.5 km) imaging instruments. It will provide pictures of the area of interest on near real time basis including border areas.
The above information was given by the Minister of State in the Ministry Personnel, Public Grievances & Pensions and in the Prime Minister’s Office, Shri V. Narayanasamy to the Parliament.
'India to have 54,000 MW renewable energy capacity by end of 12th Plan'
New Delhi: India would take its new and renewable capacities to 54000 MW by 2017, the terminal year of the 12th Five-Year Plan, Gireesh B. Pardhan, Secretary of the Ministry of New and Renewable Energy, said on Saturday. Currently, the country has around 27,000 MW of renewable energy capacity.
India produced solar energy at an average tariff of Rs 18 a unit in 2009, which now stands at Rs 7.40 per unit, Pardhan said at an industry event organised by FICCI.
“This fall in tariff for solar energy witnessed in such a short period has encouraged policy makers to explore greater possibilities to harness solar energy at a faster pace,” he added.
At the same time, India is not in favour of a proposal for setting up of a SAARC Regional Grid to cement energy co-operation among the member nations.
The Secretary said these countries should strive to build blocs for bilateral cooperation with the adoption of a bottom-up approach rather than seeking to establish a SAARC regional grid which seemed impractical.
In July 2004, the SAARC endorsed the concept of an ‘Energy Ring’ of interconnected energy systems in the region.
Vikramjit Singh Sahney, President of the SAARC Chamber of Commerce and Industry, said the member nations should identify commodities of common interest and begin to enhance their trade for mutual benefit.
According to Sahney, the ongoing move on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline could be a model for public-private partnerships in mega infrastructure projects in the SAARC region.
India produced solar energy at an average tariff of Rs 18 a unit in 2009, which now stands at Rs 7.40 per unit, Pardhan said at an industry event organised by FICCI.
“This fall in tariff for solar energy witnessed in such a short period has encouraged policy makers to explore greater possibilities to harness solar energy at a faster pace,” he added.
At the same time, India is not in favour of a proposal for setting up of a SAARC Regional Grid to cement energy co-operation among the member nations.
The Secretary said these countries should strive to build blocs for bilateral cooperation with the adoption of a bottom-up approach rather than seeking to establish a SAARC regional grid which seemed impractical.
In July 2004, the SAARC endorsed the concept of an ‘Energy Ring’ of interconnected energy systems in the region.
Vikramjit Singh Sahney, President of the SAARC Chamber of Commerce and Industry, said the member nations should identify commodities of common interest and begin to enhance their trade for mutual benefit.
According to Sahney, the ongoing move on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline could be a model for public-private partnerships in mega infrastructure projects in the SAARC region.
'India to be 2nd largest manufacturing country'
New Delhi: India is expected to be the second largest economy in manufacturing in next five years, followed by Brazil as the third ranked country, consulting major Deloitte Touche Tohmatsu (Deloitte) has said. China will retain the numero uno position. “The competitiveness of each nation’s manufacturing innovation ecosystem will continue to be a focus area for policymakers, business leaders and much of society,” the 2013 Global Manufacturing Competitiveness Index report done by Deloitte said. It said the main reason will be the recent restrained growth in China, changes in the US, a dark cloud over much of the Euro Zone, trade wars in South America, an ongoing malaise in Japan and the percolating but elusive rise of India. “Brazil’s jump from eighth to third is the largest jump expected over the next five years. And, Vietnam moves into the top 10 as the tenth most competitive nation,” it said. According to the Deloitte’s report, five developed economy nations that were ranked in the top 10 as of this year were Germany (second), the US (third), South Korea (fifth), Canada (seventh) and Japan (tenth). Five emerging economy nations were also ranked in the top 10 including China (first), India (fourth), Taiwan (sixth), Brazil (eighth) and Singapore (ninth). The report included over 550 survey responses from Chief Executive Officers around the world collected throughout 2012.
Bilateral Investment Promotion & Protection Agreements Signed with 82 Countries
New Delhi: Government of India has signed Bilateral Investment Promotion and Protection Agreements (BIPA) with 82 countries, of which BIPAs with 72 countries have come into force. The list of all the 82 countries with whom India has signed BIPA along with the text of 72 BIPAs, which are currently in force is available at http://finmin.nic.in/bipa/bipa_index.asp. These Agreements are intended to promote bilateral investment flows by assuring fair and equitable treatment to investments on post establishment basis. These agreements contain provisions relating, inter-alia, to National Treatment, Most Favoured Nation Treatment and mechanism for dispute resolution on reciprocal basis.
These Agreements require the concerned Governments to handle a dispute notice by a foreign investor from the other country, covered by the Agreement, in terms of the provisions of the Agreement, which may also entail international arbitration. In view of the dispute notices received by the Government of India recently, Government has been taking steps to handle the specific dispute notices, in terms of the provisions of the applicable Agreement and the facts of the case. The generic issues arising from the said dispute notices are also being handled appropriately.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
These Agreements require the concerned Governments to handle a dispute notice by a foreign investor from the other country, covered by the Agreement, in terms of the provisions of the Agreement, which may also entail international arbitration. In view of the dispute notices received by the Government of India recently, Government has been taking steps to handle the specific dispute notices, in terms of the provisions of the applicable Agreement and the facts of the case. The generic issues arising from the said dispute notices are also being handled appropriately.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
Friday, November 23, 2012
GE to invest Rs 331 lakh in research & engineering
Bengaluru: GE, adding 400 people every year for 10 years at the John F Welch Technology Center (JFWTC), will be expanding the capabilities of the centre at an investment of Rs 331 lakh ($60 million).
The investment, which is focused on expanding the technology centre here includes setting up experimental labs and its infrastructure includes leading-edge research and engineering in areas of critical importance, the company said here on Thursday.
The centre would conduct research and engineering in cancer treatment and radiochemistry and other technology applications in healthcare, locomotive engines, heavy earth moving equipment and equipment for the energy sector, said Gopichand Katragadda , MD, GE India Technology Center (John F Welch Technology Centre).
The centre, established in September, 2000 here, is GE's first and largest integrated multi-disciplinary R&D and engineering centre outside the US. Investing heavily in advanced IT-enabled laboratories, the centre is among the leading engineering innovation across GE's diverse businesses.
The GE's John F Welch Technology Centre is set to touch 5,000 employees by the end of the year, according to Katragadda. Meanwhile, over the last decade, the Centre alone has contributed to over 1,850 patents being filed by GE, the parent company.
GE has been trying to get to 15-20 per cent savings in many of the devices it has been manufacturing. According to industry sources, the cost savings on many of the products through defeaturing has been to the tune of 50 per cent or more in many products. The company has particularly been aggressive in the healthcare sector. It has been able to remove two-thirds on the costs in the case of many devices.
Meanwhile, the company is investing about $200 million in a manufacturing facility in Pune.
The investment, which is focused on expanding the technology centre here includes setting up experimental labs and its infrastructure includes leading-edge research and engineering in areas of critical importance, the company said here on Thursday.
The centre would conduct research and engineering in cancer treatment and radiochemistry and other technology applications in healthcare, locomotive engines, heavy earth moving equipment and equipment for the energy sector, said Gopichand Katragadda , MD, GE India Technology Center (John F Welch Technology Centre).
The centre, established in September, 2000 here, is GE's first and largest integrated multi-disciplinary R&D and engineering centre outside the US. Investing heavily in advanced IT-enabled laboratories, the centre is among the leading engineering innovation across GE's diverse businesses.
The GE's John F Welch Technology Centre is set to touch 5,000 employees by the end of the year, according to Katragadda. Meanwhile, over the last decade, the Centre alone has contributed to over 1,850 patents being filed by GE, the parent company.
GE has been trying to get to 15-20 per cent savings in many of the devices it has been manufacturing. According to industry sources, the cost savings on many of the products through defeaturing has been to the tune of 50 per cent or more in many products. The company has particularly been aggressive in the healthcare sector. It has been able to remove two-thirds on the costs in the case of many devices.
Meanwhile, the company is investing about $200 million in a manufacturing facility in Pune.
IT solutions provider BS Software inks deal with Lufthansa Cargo AG for implementation of its air cargo solution iCargo
New Delhi: Leading IT solutions provider to the aviation industry, IBS Software, has entered into a contract with Lufthansa Cargo AG for the implementation of its air cargo solution, iCargo.
The air cargo solution will manage the entire air cargo movement of Lufthansa Cargo AG worldwide. Lufthansa Cargo AG is the airline cargo service provider in the Lufthansa Group.
The deal worth Rs 700 crore has three segments and IBS Software has major share of the contract. The contract is one of the largest IT system deals by Lufthansa Group, the spokesmen of IBS Software and Lufthansa Group said in a joint press conference at Thiruvananthapuram.
"IBS being an IT product company, we consider this as a landmark agreement", V K Mathews, executive chairman of IBS said. IBS was selected from among 400 solution providers after a selection process that lasted 18 months, he pointed out. The contract is for a period of ten years.
IBS Software's new generation iCargo will be deployed globally across 100 stations and will have user base of over 4000 staff members. Lufthansa Systems will provide comprehensive consulting services during and after the implementation phase. IBM is in charge of system integration.
The air cargo solution will manage the entire air cargo movement of Lufthansa Cargo AG worldwide. Lufthansa Cargo AG is the airline cargo service provider in the Lufthansa Group.
The deal worth Rs 700 crore has three segments and IBS Software has major share of the contract. The contract is one of the largest IT system deals by Lufthansa Group, the spokesmen of IBS Software and Lufthansa Group said in a joint press conference at Thiruvananthapuram.
"IBS being an IT product company, we consider this as a landmark agreement", V K Mathews, executive chairman of IBS said. IBS was selected from among 400 solution providers after a selection process that lasted 18 months, he pointed out. The contract is for a period of ten years.
IBS Software's new generation iCargo will be deployed globally across 100 stations and will have user base of over 4000 staff members. Lufthansa Systems will provide comprehensive consulting services during and after the implementation phase. IBM is in charge of system integration.
Unilever opens technology center in Bangalore
Bengaluru: Consumer products maker Unilever on Thursday said it has opened a technology support and innovation center in Bangalore to provide IT services for its global operations as well as explore innovative ways of using technology to improve its business.
The 220,000 sq ft center in the outskirts of Bangalore, which currently houses 1400 staff, will be its largest technology center.
Unilever, which operates in India as Hindustan Unilever Ltd that sells popular brands such as Lipton, Sunsilk and Lux said the new center will provide services such as IT and information management services to both Unilever as well as its Indian arm. Unilever owns 52% stake in BSE-listed HUL , which also makes Kwality Wall's ice creams and Close Up toothpaste.
Unilever CEO Paul Polman said the Bangalore center will leverage the information technology ecosystem in India. The company said it plans to further scale up the capacity of its Bangalore center. The IT services from the center include building and supporting global SAP platforms for both companies.
Some of Unilever's existing IT services vendors such as Infosys and Accenture will continue to support the company and will have their staff based at the new center.
Unilever had recently shut four of its plants and cut close to 800 jobs in the UK.
Last month, the Anglo-Dutch company had reported its third quarter revenues 13.4 billion, aided by strong sales from developing markets. Emerging markets, which includes India, China, Indonesia etc, contributes about 55% of Unilever's revenues at present.
The 220,000 sq ft center in the outskirts of Bangalore, which currently houses 1400 staff, will be its largest technology center.
Unilever, which operates in India as Hindustan Unilever Ltd that sells popular brands such as Lipton, Sunsilk and Lux said the new center will provide services such as IT and information management services to both Unilever as well as its Indian arm. Unilever owns 52% stake in BSE-listed HUL , which also makes Kwality Wall's ice creams and Close Up toothpaste.
Unilever CEO Paul Polman said the Bangalore center will leverage the information technology ecosystem in India. The company said it plans to further scale up the capacity of its Bangalore center. The IT services from the center include building and supporting global SAP platforms for both companies.
Some of Unilever's existing IT services vendors such as Infosys and Accenture will continue to support the company and will have their staff based at the new center.
Unilever had recently shut four of its plants and cut close to 800 jobs in the UK.
Last month, the Anglo-Dutch company had reported its third quarter revenues 13.4 billion, aided by strong sales from developing markets. Emerging markets, which includes India, China, Indonesia etc, contributes about 55% of Unilever's revenues at present.
PPP in railways allowed for better connectivity
New Delhi: The government today approved a private investment policy in the railways and the revised cost estimate of Rs 2,325 crore for modernising Kolkata ’s Netaji Subhash Chandra Bose International Airport .
The railways, whose performance in public-private partnership projects has been dismal, will try five different models for inviting private sector participation for last-mile connectivity projects. From generating funding by customers and joint venture projects with equity participation by the railways to projects on a build-operate-transfer ( BOT ) and BOT annuity basis, the government hopes it will be able to have speedier implementation.
The proposed framework is also expected to help the railways increase freight volumes. Over two dozen projects in the mining and power sector have been identified for providing rail connectivity.
In a late evening Cabinet meeting, the government also approved expansion of Kolkata’s international airport, including construction of an integrated terminal building. The formal inauguration is likely on January 23, birthday of Subhash Chandra Bose.
Ethanol, posts
The government today also made five per cent ethanol blending with petrol mandatory. The Cabinet Committee on Economic Affairs ( CCEA ) said the procurement price of ethanol would now be decided between oil marketing companies and the supplier and in case of any shortfall in domestic supply, the OMCs and chemical companies are free to import. The ethanol blending programme is being implemented in 13 states, with a blending level of about two per cent against the compulsory target of five per cent.
A proposal for modernisation of the department of posts was also approved by the CCEA. It okayed Rs 4,909 crore for modernisation and computerisation of all post offices (POs), including branch ones in rural areas. There are 155,000 POs across the country. The information technology project of the department is a part of the Mission Mode Project included in the National e-Governance Plan.
The Cabinet Committee on Infrastructure also approved a project for single point mooring and allied facilities for import of crude oil at Kandla port, on a BOT basis for a period of 30 years at an estimated cost of Rs 622 crore.
The railways, whose performance in public-private partnership projects has been dismal, will try five different models for inviting private sector participation for last-mile connectivity projects. From generating funding by customers and joint venture projects with equity participation by the railways to projects on a build-operate-transfer ( BOT ) and BOT annuity basis, the government hopes it will be able to have speedier implementation.
The proposed framework is also expected to help the railways increase freight volumes. Over two dozen projects in the mining and power sector have been identified for providing rail connectivity.
In a late evening Cabinet meeting, the government also approved expansion of Kolkata’s international airport, including construction of an integrated terminal building. The formal inauguration is likely on January 23, birthday of Subhash Chandra Bose.
Ethanol, posts
The government today also made five per cent ethanol blending with petrol mandatory. The Cabinet Committee on Economic Affairs ( CCEA ) said the procurement price of ethanol would now be decided between oil marketing companies and the supplier and in case of any shortfall in domestic supply, the OMCs and chemical companies are free to import. The ethanol blending programme is being implemented in 13 states, with a blending level of about two per cent against the compulsory target of five per cent.
A proposal for modernisation of the department of posts was also approved by the CCEA. It okayed Rs 4,909 crore for modernisation and computerisation of all post offices (POs), including branch ones in rural areas. There are 155,000 POs across the country. The information technology project of the department is a part of the Mission Mode Project included in the National e-Governance Plan.
The Cabinet Committee on Infrastructure also approved a project for single point mooring and allied facilities for import of crude oil at Kandla port, on a BOT basis for a period of 30 years at an estimated cost of Rs 622 crore.
Government clears the National Pharmaceuticals Pricing PolicyGovernment clears the National Pharmaceuticals Pricing Policy
New Delhi: The Government of India has cleared the National Pharmaceutical Pricing Policy. The policy aims to bring 348 essential drugs under price control, which will lead to average reduction of around 20 percent in prices.
“The National Pharmaceutical Pricing Policy has been approved by the Cabinet with an objective to put in place a regulatory framework for pricing of drugs to ensure their availability at reasonable prices,” as per an official source.
Currently, prices of 74 bulk drugs and their formulations is controlled by the Government of India with the help of the National Pharmaceutical Pricing Authority (NPPA).
Earlier, the fix prices based on weighted average of brands which have more than 1 per cent market share was proposed by the Group of Ministers (GoM), headed by Mr Sharad Pawar, Union Minister for Agriculture and Food Processing Industries.The Government has also considered providing sufficient opportunity for innovation and competition to support growth of the Indian pharmaceutical industry.
"Pharma industry allows for an increase in prices of 2-3 per cent every year. If an average 20 per cent reduction in prices of essential drugs happens, it means buying at 2004 prices. This will benefit consumers," as per Ameesh Masurekar, Director, All Indian Origin Chemists & Distributors Ltd (AIOCD).
The scope of the policy is estimated to be around 17 per cent of the total pharmaceutical market, while coupling it with the existing medicines under price control, the coverage increases to around 30 per cent.
“The National Pharmaceutical Pricing Policy has been approved by the Cabinet with an objective to put in place a regulatory framework for pricing of drugs to ensure their availability at reasonable prices,” as per an official source.
Currently, prices of 74 bulk drugs and their formulations is controlled by the Government of India with the help of the National Pharmaceutical Pricing Authority (NPPA).
Earlier, the fix prices based on weighted average of brands which have more than 1 per cent market share was proposed by the Group of Ministers (GoM), headed by Mr Sharad Pawar, Union Minister for Agriculture and Food Processing Industries.The Government has also considered providing sufficient opportunity for innovation and competition to support growth of the Indian pharmaceutical industry.
"Pharma industry allows for an increase in prices of 2-3 per cent every year. If an average 20 per cent reduction in prices of essential drugs happens, it means buying at 2004 prices. This will benefit consumers," as per Ameesh Masurekar, Director, All Indian Origin Chemists & Distributors Ltd (AIOCD).
The scope of the policy is estimated to be around 17 per cent of the total pharmaceutical market, while coupling it with the existing medicines under price control, the coverage increases to around 30 per cent.
JLR to invest Rs 18,000 crore a year on capex
Chennai: Jaguar Land Rover will incur capital expenditure of £ 2 billion (Rs 18,000 crore) a year over the medium term. This will be mainly on product development, according to the ratings agency CRISIL.
In a recent conference call with analysts on November 7, the company said that it had spent £ 2 billion last year on product development. Now, according to CRISIL, the company will continue to incur this level of expenditure each year, over the next few years.
“JLR will continue to incur capex about £ 2 billion per annum over the medium term to enhance and diversify its product range, meet stringent emission norms, improve engine manufacturing capabilities, and expand manufacturing footprint in the developing world,” CRISIL said.
The success of this capex programme is critical for JLR to achieve diversified growth, strengthen its business risk profile and maintain its competitive position, the rating agency noted.
JLR’s capex as a percentage of sales is expected to be higher than that of JLR’s larger peer brands such as BMW, Audi and Benz over the medium term increasing the balance sheet risks. However, CRISIL notes that JLR’s capex is modular in nature and in case of volume slowdown due to weak macroeconomic scenario in its key markets, JLR “would prudently defer part of its capex.”
JLR, the company that manufactures the two British iconic brands, Jaguar and Land Rover, was acquired by the Tata group in 2008.
In the second quarter of the current year, JLR sold 86,000 units, 37 per cent higher than in the same period last year. China accounted for the bulk (21 per cent) of the sales.
JLR’s sales for the quarter rose to £ 3.6 billion compared with £ 2.7 billion in the same quarter last year. Net profit also increased 16 per cent to £ 232 million.
In a rating exercise done in July, the ratings agency Standard & Poor commented that JLR’s had “significantly outperformed our base-case expectations.”
It said that while JLR’s investments would “impair profitability”, these investments were needed to support future growth of the Land Rover brand, allow the repositioning of the Jaguar brand and help JLR’s progress towards complying with CO2 regulations.
In a recent conference call with analysts on November 7, the company said that it had spent £ 2 billion last year on product development. Now, according to CRISIL, the company will continue to incur this level of expenditure each year, over the next few years.
“JLR will continue to incur capex about £ 2 billion per annum over the medium term to enhance and diversify its product range, meet stringent emission norms, improve engine manufacturing capabilities, and expand manufacturing footprint in the developing world,” CRISIL said.
The success of this capex programme is critical for JLR to achieve diversified growth, strengthen its business risk profile and maintain its competitive position, the rating agency noted.
JLR’s capex as a percentage of sales is expected to be higher than that of JLR’s larger peer brands such as BMW, Audi and Benz over the medium term increasing the balance sheet risks. However, CRISIL notes that JLR’s capex is modular in nature and in case of volume slowdown due to weak macroeconomic scenario in its key markets, JLR “would prudently defer part of its capex.”
JLR, the company that manufactures the two British iconic brands, Jaguar and Land Rover, was acquired by the Tata group in 2008.
In the second quarter of the current year, JLR sold 86,000 units, 37 per cent higher than in the same period last year. China accounted for the bulk (21 per cent) of the sales.
JLR’s sales for the quarter rose to £ 3.6 billion compared with £ 2.7 billion in the same quarter last year. Net profit also increased 16 per cent to £ 232 million.
In a rating exercise done in July, the ratings agency Standard & Poor commented that JLR’s had “significantly outperformed our base-case expectations.”
It said that while JLR’s investments would “impair profitability”, these investments were needed to support future growth of the Land Rover brand, allow the repositioning of the Jaguar brand and help JLR’s progress towards complying with CO2 regulations.
Greenko buys hydel projects for Rs 132 cr
Hyderabad: Renewable energy company Greenko has acquired three hydel power projects based in Himachal Pradesh for about Rs 132 crore (€18.7 million).
The Hyderabad-based company, listed on the London Stock Exchange’s AIM, has a generating portfolio of over 275 MW and is on track to set up total installed capacity of 1,000 MW by 2015, including wind power projects.
Greenko has acquired companies , apart from setting up its own portfolio of projects, including wind power generation farms in Maharashtra and Andhra Pradesh.
In March 2012, Greenko had announced the acquisition of a 32 MW cluster of operating hydel power projects in Himachal Pradesh and concluded the transaction in April. It had committed to acquire another 15 MW subject to certain conditions being fulfilled.
Sustainable hydel power assets
Anil Chalamalasetty, Chief Executive Officer and MD, Greenko, said these are amongst sustainable hydel power assets. The company has 151 MW of operational hydel assets, another 189 MW is under construction, and an additional 182 MW is under various stages of development.
The company is also evaluating more companies for acquisition. The Greenko management anticipates growing opportunity to increase hydel power portfolio through acquisition, be it operational, in construction, or at advanced stages of development.
The power generated from the hydel power plants will be sold to the State electricity board through the power purchase agreement. The company expects an average plant load factor of 60 per cent with the purchase price of Rs 2.95 per unit. These projects are registered under the clean development mechanism.
The Hyderabad-based company, listed on the London Stock Exchange’s AIM, has a generating portfolio of over 275 MW and is on track to set up total installed capacity of 1,000 MW by 2015, including wind power projects.
Greenko has acquired companies , apart from setting up its own portfolio of projects, including wind power generation farms in Maharashtra and Andhra Pradesh.
In March 2012, Greenko had announced the acquisition of a 32 MW cluster of operating hydel power projects in Himachal Pradesh and concluded the transaction in April. It had committed to acquire another 15 MW subject to certain conditions being fulfilled.
Sustainable hydel power assets
Anil Chalamalasetty, Chief Executive Officer and MD, Greenko, said these are amongst sustainable hydel power assets. The company has 151 MW of operational hydel assets, another 189 MW is under construction, and an additional 182 MW is under various stages of development.
The company is also evaluating more companies for acquisition. The Greenko management anticipates growing opportunity to increase hydel power portfolio through acquisition, be it operational, in construction, or at advanced stages of development.
The power generated from the hydel power plants will be sold to the State electricity board through the power purchase agreement. The company expects an average plant load factor of 60 per cent with the purchase price of Rs 2.95 per unit. These projects are registered under the clean development mechanism.
Russia's NIS Glonass to partner BSNL, MTNL to deliver GPS-like services in India
Kolkata: The governmment will shortly clear a three-way partnership between Russia's NIS Glonass, BSNL and MTNLBSE for delivering satellite-based navigation services in India, top officials in the telecom department told ET.
"A draft memorandum of understanding (MoU) between NIS Glonass, BSNL and MTNL for provision of satellite navigation services is being considered by the government," says an internal telecom department note reviewed by ET, which adds that the Russian government recently informed the foreign ministry about making the Glonass system available to the global community for free use.
The development comes on the heels of Russia's plans to roll out satellite-based information services akin to `GPS' on the Glonass system in international markets like India. Glonass is a Russian space-based system with 23 operational satellites deployed for delivering information services.
NIS Glonass is a wholly-owned subsidiary of the Russian public-private partnership company, Navigation-Information Systems, whose main stakeholders are Russian conglomerate JSFC Sistema (70.01%) and JSC Russian Space Systems (29.99%) .
Details of this tripartite alliance remain under wraps, but a top official in the Russian Embassy said formation of this three-way partnership with India's leading telecom PSUs would reinforce Indo-Russian collaborations in advanced technology.
"We hope the Indian government will issue the necessary clearances expeditiously to NIS Glonass for this crucial telecoms partnership to take flight. It is an important milestone in Indo-Russian collaboration in advanced technology and space research," said this official who did not wish to be named.
Glonass or "Global Navigation Satellite System" was only used by the Russian military for years and was made available to civilians only in 2007. Similar to the US's Global Positioning System (GPS), it is also a radio-based satellite navigation system that provides location and time information anywhere in the planet, and is equipped to lend critical support to military, civil and commercial users worldwide.
NIS Glonass has earlier reportedly indicated plans to participate in Indian government projects relating to passenger information system, fleet management systems and modernising the police forces. It is also planned to develop telematics terminals in India that can work on both GPS and Glonass satellite navigation systems, said two people familiar with developments. Company executives could not be reached for comment.
Though the Glonass satellite constellation offers global coverage, its commercialisation, especially development of the user segment, it has been lacking compared to the US's GPS system. Recently, the Russian government reportedly imposed an import duty on all GPS-capable devices, including mobile phones, unless they also supported the Glonass system.
"A draft memorandum of understanding (MoU) between NIS Glonass, BSNL and MTNL for provision of satellite navigation services is being considered by the government," says an internal telecom department note reviewed by ET, which adds that the Russian government recently informed the foreign ministry about making the Glonass system available to the global community for free use.
The development comes on the heels of Russia's plans to roll out satellite-based information services akin to `GPS' on the Glonass system in international markets like India. Glonass is a Russian space-based system with 23 operational satellites deployed for delivering information services.
NIS Glonass is a wholly-owned subsidiary of the Russian public-private partnership company, Navigation-Information Systems, whose main stakeholders are Russian conglomerate JSFC Sistema (70.01%) and JSC Russian Space Systems (29.99%) .
Details of this tripartite alliance remain under wraps, but a top official in the Russian Embassy said formation of this three-way partnership with India's leading telecom PSUs would reinforce Indo-Russian collaborations in advanced technology.
"We hope the Indian government will issue the necessary clearances expeditiously to NIS Glonass for this crucial telecoms partnership to take flight. It is an important milestone in Indo-Russian collaboration in advanced technology and space research," said this official who did not wish to be named.
Glonass or "Global Navigation Satellite System" was only used by the Russian military for years and was made available to civilians only in 2007. Similar to the US's Global Positioning System (GPS), it is also a radio-based satellite navigation system that provides location and time information anywhere in the planet, and is equipped to lend critical support to military, civil and commercial users worldwide.
NIS Glonass has earlier reportedly indicated plans to participate in Indian government projects relating to passenger information system, fleet management systems and modernising the police forces. It is also planned to develop telematics terminals in India that can work on both GPS and Glonass satellite navigation systems, said two people familiar with developments. Company executives could not be reached for comment.
Though the Glonass satellite constellation offers global coverage, its commercialisation, especially development of the user segment, it has been lacking compared to the US's GPS system. Recently, the Russian government reportedly imposed an import duty on all GPS-capable devices, including mobile phones, unless they also supported the Glonass system.
Krishnapatnam port commissions cranes to handle export of cars
Krishnapatnam: The privately-run Krishnapatnam Port in Andhra Pradesh is likely to compete with Chennai and Ennore ports to handle export of cars that are manufactured in the Chennai and Bangalore regions.
The port, located 180 km north of Chennai, is constructing a roll-on roll-off berth in the south terminal.
“We hope to have the berth ready to handle cars by the first quarter of 2013-14,” said Anil Yendluri, Chief Executive Officer, Krishnapatnam Port and Director, Krishnapatnam Rail Co Ltd.
The port is in discussion with all the car manufacturers, he said but did not divulge their names. Hyundai, Ford, Nissan and Renault make cars in the Chennai region. Many officials of the manufacturers have already visited the port, he said. The Chennai port annually handles over three lakh cars while at Ennore Port, the cumulative car handling has crossed two lakhs. The Ennore port commenced car handling in September 2010.
Yendluri claimed that Krishnapatnam being a private port, there is an advantage for customers in getting flexibility in rates.
However, since there is a space constraint in Chennai and Ennore ports, for manufacturers, the next available option is Krishnapatnam, which is accessible through both rail and road. The port has nearly 45 km of railway line inside the campus, he said.
He felt that distance was not an issue that will stop the manufacturers looking at Krishnapatnam. If they want space and cost advantages, they will consider this port, he said. The port is promoted by the Hyderabad-based C.V.R. Group. The group’s flagship company, Navayuga Engineering Company Ltd, is the EPC contractor for the port.
Meanwhile, the port has commissioned five super post Panamax rail-mounted quay cranes at its container terminal. The all-weather terminal can handle 1.2 million TEUs (twenty foot equivalent units) annually. With a draft of 18 metres, the port is capable of handling largest container vessels, he said. The cranes were commissioned for the container vessel Buxhill, an MSC-operated weekly service connecting Krishnapatman port and Colombo.
Yendluri said there is a plan to increase the container handling capacity to six million TEUs in the next four years — making it one of the largest container terminals on the East Coast.
The port, located 180 km north of Chennai, is constructing a roll-on roll-off berth in the south terminal.
“We hope to have the berth ready to handle cars by the first quarter of 2013-14,” said Anil Yendluri, Chief Executive Officer, Krishnapatnam Port and Director, Krishnapatnam Rail Co Ltd.
The port is in discussion with all the car manufacturers, he said but did not divulge their names. Hyundai, Ford, Nissan and Renault make cars in the Chennai region. Many officials of the manufacturers have already visited the port, he said. The Chennai port annually handles over three lakh cars while at Ennore Port, the cumulative car handling has crossed two lakhs. The Ennore port commenced car handling in September 2010.
Yendluri claimed that Krishnapatnam being a private port, there is an advantage for customers in getting flexibility in rates.
However, since there is a space constraint in Chennai and Ennore ports, for manufacturers, the next available option is Krishnapatnam, which is accessible through both rail and road. The port has nearly 45 km of railway line inside the campus, he said.
He felt that distance was not an issue that will stop the manufacturers looking at Krishnapatnam. If they want space and cost advantages, they will consider this port, he said. The port is promoted by the Hyderabad-based C.V.R. Group. The group’s flagship company, Navayuga Engineering Company Ltd, is the EPC contractor for the port.
Meanwhile, the port has commissioned five super post Panamax rail-mounted quay cranes at its container terminal. The all-weather terminal can handle 1.2 million TEUs (twenty foot equivalent units) annually. With a draft of 18 metres, the port is capable of handling largest container vessels, he said. The cranes were commissioned for the container vessel Buxhill, an MSC-operated weekly service connecting Krishnapatman port and Colombo.
Yendluri said there is a plan to increase the container handling capacity to six million TEUs in the next four years — making it one of the largest container terminals on the East Coast.
Remittances flow to India expected to reach US$ 70 billion in 2012: World Bank
New Delhi: India is expected to receive remittances worth US$ 70 billion in 2012, emerging on top of the list of developing countries which are expected to receive a total of US$ 406 billion remittances in 2012, according to the World Bank.
China will stand second with US$ 66 billion, followed by Mexico and Philippines with US$ 24 billion each, as per the latest report by the Bank.
Nigeria (US$ 21 billion), Egypt (US$ 18 billion), US$ 14 billion each for Pakistan and Bangladesh, followed by Vietnam (US$ 9 billion) and Lebanon (US$ 7 billion) are the other large recipients of remittances.
The total worldwide remittances—including high income countries—is expected to reach US$ 534 billion in 2015 and including those to high-income countries, are projected to grow to US$ 685 billion in 2015.
The true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger, the report highlighted.
“Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance,” as per the Bank.
China will stand second with US$ 66 billion, followed by Mexico and Philippines with US$ 24 billion each, as per the latest report by the Bank.
Nigeria (US$ 21 billion), Egypt (US$ 18 billion), US$ 14 billion each for Pakistan and Bangladesh, followed by Vietnam (US$ 9 billion) and Lebanon (US$ 7 billion) are the other large recipients of remittances.
The total worldwide remittances—including high income countries—is expected to reach US$ 534 billion in 2015 and including those to high-income countries, are projected to grow to US$ 685 billion in 2015.
The true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger, the report highlighted.
“Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance,” as per the Bank.
Wednesday, November 21, 2012
Zuari Agro to invest Rs 4,400 cr in UAE fertiliser facility
Mumbai: Zuari Agro Chemicals has signed an agreement with Ras Al Khaimah Maritime City to set up an integrated one million tonne a year diammonium phosphate manufacturing facility in the UAE.
The project, being developed with an investment of $800 million (about Rs 4,400 crore), includes a power plant, private jetty and desalination plant. It is planned to be built over 400 acres in the free trade zone of RAK Maritime City.
Suresh Krishnan, Managing Director, Zuari Agro, said the project would play a key role in the backward integration programme and help tap the fast growing global fertiliser market.
Part of the $3-billion Adventz Group, Zuari has an annual installed capacity of 946,000 tonnes of fertiliser in Goa. The manufacturing facility comprises four separate plants, namely ammonia, urea, NPK A and NPK B. The plants employ the latest in pipe-reactor technology and are based on the slurry granulation process.
The project in the UAE will further strengthen the company’s manufacturing foothold outside India. Last year, the company formed a joint venture with Mitsubishi Corporation, Japan, to form a new rock phosphate manufacturing company, MCA Phosphates Pte Ltd. Since then, MCA Phosphates acquired 30 per cent equity stake in Fosfatos del Pacifico of Peru for $46.12 million.
Zuari Maroc Phosphates, a joint venture with Maroc Phosphore S.A., Morocco, acquired Paradeep Phosphates (PPL). At present, the company holds 80 per cent of the equity stake in PPL.
PPL manufactures and markets complex phosphatic fertilisers and intermediary products such as phosphoric acid and sulphuric acid, which are crucial in the manufacture of phosphatic fertilisers.
It has a plant located in the port town of Paradeep in Odisha, with an installed annual capacity of 720,000 tonnes of DAP and other phosphatic fertilisers. The off-site facilities comprise a 3.4-km closed conveyor from port to plant site, a railway siding, raw material storage yards and a 3.1-km long pipe rack.
The project, being developed with an investment of $800 million (about Rs 4,400 crore), includes a power plant, private jetty and desalination plant. It is planned to be built over 400 acres in the free trade zone of RAK Maritime City.
Suresh Krishnan, Managing Director, Zuari Agro, said the project would play a key role in the backward integration programme and help tap the fast growing global fertiliser market.
Part of the $3-billion Adventz Group, Zuari has an annual installed capacity of 946,000 tonnes of fertiliser in Goa. The manufacturing facility comprises four separate plants, namely ammonia, urea, NPK A and NPK B. The plants employ the latest in pipe-reactor technology and are based on the slurry granulation process.
The project in the UAE will further strengthen the company’s manufacturing foothold outside India. Last year, the company formed a joint venture with Mitsubishi Corporation, Japan, to form a new rock phosphate manufacturing company, MCA Phosphates Pte Ltd. Since then, MCA Phosphates acquired 30 per cent equity stake in Fosfatos del Pacifico of Peru for $46.12 million.
Zuari Maroc Phosphates, a joint venture with Maroc Phosphore S.A., Morocco, acquired Paradeep Phosphates (PPL). At present, the company holds 80 per cent of the equity stake in PPL.
PPL manufactures and markets complex phosphatic fertilisers and intermediary products such as phosphoric acid and sulphuric acid, which are crucial in the manufacture of phosphatic fertilisers.
It has a plant located in the port town of Paradeep in Odisha, with an installed annual capacity of 720,000 tonnes of DAP and other phosphatic fertilisers. The off-site facilities comprise a 3.4-km closed conveyor from port to plant site, a railway siding, raw material storage yards and a 3.1-km long pipe rack.
VayuGrid inks MoU with Ethiopia for biofuel park
Bengaluru: VayuGrid, a biofuel supply chain company based in Bangalore, has signed a memorandum of understanding to create a biofuel cluster for its VayuSap — high-yield Pongamia — in Ethiopia.
The company said the cluster will create a $2.5-million biofuel investment opportunity and is part of a larger government plan to develop a biofuel park in Ethiopia. Starting with a 2,000 acre, the long-term goal is to create a cluster of 100,000 acres under a collaborative model.
The biofuel park is a critical step to reduce the country’s commitment of 87 per cent of free cash on imported crude while at the same time creating local job opportunities and an ecosystem of value-added businesses.
Ethiopia was chosen strategically based on the economics and agriculture. Its large land bank of arid and unproductive land lends itself perfectly to creating a green energy supply base for local and global markets.
Phase 1 is a 2,000-acre footprint under a collaborative model involving the participation of a local partner bringing in land and labour, investors putting the capital and VayuGrid providing the IP and downstream contracts, thereby creating a sustainable and replicable business model.
“VayuGrid is bringing together local and global businesses that are dependent on crude and looking for ways to hedge against currency fluctuations while ensuring a predictable supply of green energy,” said Doug Peterson, CEO, VayuGrid.
“Our biofuel clusters ensure a sustainable biofuel supply for downstream markets and high returns for governments, land owners and investors,” he added.
The company said the cluster will create a $2.5-million biofuel investment opportunity and is part of a larger government plan to develop a biofuel park in Ethiopia. Starting with a 2,000 acre, the long-term goal is to create a cluster of 100,000 acres under a collaborative model.
The biofuel park is a critical step to reduce the country’s commitment of 87 per cent of free cash on imported crude while at the same time creating local job opportunities and an ecosystem of value-added businesses.
Ethiopia was chosen strategically based on the economics and agriculture. Its large land bank of arid and unproductive land lends itself perfectly to creating a green energy supply base for local and global markets.
Phase 1 is a 2,000-acre footprint under a collaborative model involving the participation of a local partner bringing in land and labour, investors putting the capital and VayuGrid providing the IP and downstream contracts, thereby creating a sustainable and replicable business model.
“VayuGrid is bringing together local and global businesses that are dependent on crude and looking for ways to hedge against currency fluctuations while ensuring a predictable supply of green energy,” said Doug Peterson, CEO, VayuGrid.
“Our biofuel clusters ensure a sustainable biofuel supply for downstream markets and high returns for governments, land owners and investors,” he added.
Private equity investments up 4% in Q3: PwC study
Mumbai: Private equity firms invested $2.5 billion in the country across 97 deals in the third quarter of this year.
The quarterly PE investments increased four per cent in terms of value, while deal volume fell by 20 per cent ($2.4 billion from 121 deals in Q3 of 2011).
With 45 deals worth $1.3 billion in Q3 of 2012, the IT and ITeS sector maintained its position as the leader in both value as well as volume.
The findings are part of the third PwC MoneyTree India report.
Sanjeev Krishan, Leader, Private Equity, PwC, said, “With the year having entered its last lap, it is quite unlikely that PE investments in 2012 will be on par with those in 2011.
“However, as we approach the year-end, the sentiment seems to be reviving and this augurs well for 2013.”
The opening up of the multi-brand retail sector to foreign investment is expected to generate investments in due course, and the requirement for 50 per cent investment in back-end operations and 30 per cent procurement from SMEs is set to boost private equity investments in the logistics, agri/food and consumer goods sectors in the times to come, he added.
The IT and ITeS sector attracted investments worth $1.3 billion from 45 deals, constituting more than 50 per cent of the total investment value and nearly 47 per cent of the total number of deals in this quarter.
The average deal size for the sector too, has shown an increase from $13 million in Q3 of 2011 to $29 million in this quarter.
In Q3 of 2012, PE exits were worth $1.5 billion from 26 deals compared with $809 million from 25 deals in the same quarter last year.
The quarterly PE investments increased four per cent in terms of value, while deal volume fell by 20 per cent ($2.4 billion from 121 deals in Q3 of 2011).
With 45 deals worth $1.3 billion in Q3 of 2012, the IT and ITeS sector maintained its position as the leader in both value as well as volume.
The findings are part of the third PwC MoneyTree India report.
Sanjeev Krishan, Leader, Private Equity, PwC, said, “With the year having entered its last lap, it is quite unlikely that PE investments in 2012 will be on par with those in 2011.
“However, as we approach the year-end, the sentiment seems to be reviving and this augurs well for 2013.”
The opening up of the multi-brand retail sector to foreign investment is expected to generate investments in due course, and the requirement for 50 per cent investment in back-end operations and 30 per cent procurement from SMEs is set to boost private equity investments in the logistics, agri/food and consumer goods sectors in the times to come, he added.
The IT and ITeS sector attracted investments worth $1.3 billion from 45 deals, constituting more than 50 per cent of the total investment value and nearly 47 per cent of the total number of deals in this quarter.
The average deal size for the sector too, has shown an increase from $13 million in Q3 of 2011 to $29 million in this quarter.
In Q3 of 2012, PE exits were worth $1.5 billion from 26 deals compared with $809 million from 25 deals in the same quarter last year.
Specialist coffee chains in India expected to double to 4,000 by 2015, report says
Mumbai: Riding on a newfound coffee culture and specialist coffee chains opening outlets in India, consumption of coffee is expected to get a major boost. According to a new report by Rabobank, specialist coffee shop chains, which target the out-of-home consumption of urban youth, are projected to double to 4,000 in numbers by 2015 (CAGR of 21%).
At present, there are around 2,100 specialist coffee shops in India. Given the multiple international coffee shop chains trying to expand their base in India, consumers are likely to have even more options within the next three years, the report said.
This growth is a result of favourable demographics, rising income levels, rise of mid-sized cities and high population density. However, high real estate costs, manpower attrition and difficulties in managing the supply chain will continue to be the key challenges.
Sourcing coffee beans, the report said, is not the key barrier for specialist coffee chains, with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. For example, the cost of coffee beans in a 'Cappuccino' is about 8% of the sale price. The report said to be successful, operational efficiency (e.g. managing rent and manpower costs) is more important than focusing solely on raw material costs.
The impressive growth expected of specialist coffee chains in India offers numerous opportunities for both local and international players, provided that they can overcome inherent obstacles,'' said Nitin Kalani, beverage analyst at Rabobank International.
For a burgeoning segment of the Indian population, coffee chains are also offering a new snacking/leisure experience, which is similar to that in developed markets. The opportunities for coffee chain growth arise from the favourable demographics with low per capita consumption and increasing income levels, the rise of mid-sized cities and a high population density with its associated potential for the expansion of the coffee shop network.
The report said although specialist coffee chains' contribution to India's total coffee consumption by volume may not be significant, but they have added more visibility to the coffee culture.
However, India remains a tea drinking country with sales of the traditional beverage still larger than that of coffee.
At present, there are around 2,100 specialist coffee shops in India. Given the multiple international coffee shop chains trying to expand their base in India, consumers are likely to have even more options within the next three years, the report said.
This growth is a result of favourable demographics, rising income levels, rise of mid-sized cities and high population density. However, high real estate costs, manpower attrition and difficulties in managing the supply chain will continue to be the key challenges.
Sourcing coffee beans, the report said, is not the key barrier for specialist coffee chains, with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. For example, the cost of coffee beans in a 'Cappuccino' is about 8% of the sale price. The report said to be successful, operational efficiency (e.g. managing rent and manpower costs) is more important than focusing solely on raw material costs.
The impressive growth expected of specialist coffee chains in India offers numerous opportunities for both local and international players, provided that they can overcome inherent obstacles,'' said Nitin Kalani, beverage analyst at Rabobank International.
For a burgeoning segment of the Indian population, coffee chains are also offering a new snacking/leisure experience, which is similar to that in developed markets. The opportunities for coffee chain growth arise from the favourable demographics with low per capita consumption and increasing income levels, the rise of mid-sized cities and a high population density with its associated potential for the expansion of the coffee shop network.
The report said although specialist coffee chains' contribution to India's total coffee consumption by volume may not be significant, but they have added more visibility to the coffee culture.
However, India remains a tea drinking country with sales of the traditional beverage still larger than that of coffee.
New major Indo-Nepal power transmission line agreed upon by both countries
Siliguri: The handshaking gets stronger. India, with its high power demand in one side and Nepal in the other end with high power potential have come closer with the recently agreed planning for a new major trans-border 400 KVA power transmission line that can handle 1200MW power.
The other and upcoming major Indo-Nepal power transmission line is excepted to become operational by 2015 between Dhalkebar in Nepal and Muzaffarpur in India.
According to Mr. H Koirala, Secretary, Energy Department of Nepal, a new cross border transmission line will be set up from west Nepal to India. After having the issue discussed with Indian authority through Nepal's External Affairs Ministry, both the countries have come to a final agreement on the matter in recently concluded meeting of Energy Group under the South Asian Sub-Regional Cooperation.
As per the feasibility study, the new transmission lineis going to be a 125km long one between Butwal in West Nepal and Gorakhpur in the state of UP in India. Though initially planned to be a 132KV one, it was further upgraded to 400KV. As estimated the line needs a financial support of around INR 300 Crore.
More than five big hydropower projects with a collective capacity of around 20,000 MW are under feasibility study in West Nepal at present. Nepal cannot consume the output of those. On the other side, export of the surplus power, generated out of these projects with renewable source of the country to India, can get the financially crunched Nepal into a more comfortable situation.
India had always been interested in importing power from Nepal. "We are keen on harvesting Nepal's untapped Hydropower. A proper handshaking between Nepal and India in power sector can bring in significant benefits," said Indian Union Home Minister Mr. S K Shinde told ET earlier during his tenure as Union Power minister.
The other and upcoming major Indo-Nepal power transmission line is excepted to become operational by 2015 between Dhalkebar in Nepal and Muzaffarpur in India.
According to Mr. H Koirala, Secretary, Energy Department of Nepal, a new cross border transmission line will be set up from west Nepal to India. After having the issue discussed with Indian authority through Nepal's External Affairs Ministry, both the countries have come to a final agreement on the matter in recently concluded meeting of Energy Group under the South Asian Sub-Regional Cooperation.
As per the feasibility study, the new transmission lineis going to be a 125km long one between Butwal in West Nepal and Gorakhpur in the state of UP in India. Though initially planned to be a 132KV one, it was further upgraded to 400KV. As estimated the line needs a financial support of around INR 300 Crore.
More than five big hydropower projects with a collective capacity of around 20,000 MW are under feasibility study in West Nepal at present. Nepal cannot consume the output of those. On the other side, export of the surplus power, generated out of these projects with renewable source of the country to India, can get the financially crunched Nepal into a more comfortable situation.
India had always been interested in importing power from Nepal. "We are keen on harvesting Nepal's untapped Hydropower. A proper handshaking between Nepal and India in power sector can bring in significant benefits," said Indian Union Home Minister Mr. S K Shinde told ET earlier during his tenure as Union Power minister.
FC Barcelona to start FCBEscola India Clinics from December
New Delhi: Football club FC Barcelona plans to set up training clubs in the country, making it the first foreign club to do so, a press statement said. The FCB clinics will start mid-December. "With six FCBEscola camps completed across the country, the clinics will be the honing ground for serious footballers to qualify for the academy. The coming up of the clinics and academy will pave way for creating footballers of tomorrow," the statement said.
Anu Jain, director, Conscient Football said: "We will help in creating footballers whose skill and talent will be at par with any top international football playing nation." The clinics will be conducted by Antonio Claveria, technical director - FCBEscola India. The training will be on the Barca module and entrants to the academy will be handpicked. Conscient Football is a grassroots development organisation for football in the country and official partner of FCBarcelona.
Jain added: "Marketing of football in India is still at a nascent stage. Though the market is pegged around US$ 410 million, people are apprehensive about investing in football. We need to develop infrastructure for the sport." The last FIFA World Cup saw growth of 35% viewership in India, most of it from the youth.
Anu Jain, director, Conscient Football said: "We will help in creating footballers whose skill and talent will be at par with any top international football playing nation." The clinics will be conducted by Antonio Claveria, technical director - FCBEscola India. The training will be on the Barca module and entrants to the academy will be handpicked. Conscient Football is a grassroots development organisation for football in the country and official partner of FCBarcelona.
Jain added: "Marketing of football in India is still at a nascent stage. Though the market is pegged around US$ 410 million, people are apprehensive about investing in football. We need to develop infrastructure for the sport." The last FIFA World Cup saw growth of 35% viewership in India, most of it from the youth.
Biocon gets US firm on board for trials of oral insulin
Bengaluru: Publicly-held biotechnology major Biocon Ltd on Friday announced it had entered into an agreement with the US-based $21-billion Bristol-Myers Squibb (BMS) to further develop its IN-105, an oral insulin product candidate.
Biocon will use BMS’ expertise in clinical trials and get help in redesigning Phase-II trials of the blockbuster drug. Biocon has been working on this drug since 2004 and has so far spent close to $20 million. It had started the programme by partnering US-based Nobex, but later taken control as the latter declared bankruptcy in late 2005.
BMS has a strong presence in the diabetes segment, but in the space of drugs that enable delay in insulin intake. As the partnership goes further, it will possibly mark its entry into the insulin space.
Oral insulin is a drug that has been elusive for many players globally. Only a handful of global majors, including Novo Nordisk, are working in this space. When this product comes into the market , it will bring about a big change, not only to the companies but also the millions of diabetics who have to go through the pain of injection pricks very frequently.
“While there are difficulties in developing an oral insulin, the principle aspect is that insulin is a difficult drug to ingest orally. It is a protein that degrades in the stomach and small intestine. This makes it difficult to design oral delivery. So, companies have to work on mechanisms on how to protect this protein in the human system until it starts to work,” an industry analyst detailed.
Biocon, too, had stumbled on its trials in early 2011, when the initial data analysis showed IN-105 did not meet its primary end point of lowering the average level of blood sugar by 0.7 per cent.
Under its agreement with Biocon, BMS will have the right to exercise an option to obtain an exclusive worldwide licence to the programme. Biocon will conduct clinical studies to further characterise IN-105’s clinical profile according to a pre-agreed development programme up to the completion of Phase II. “BMS will invest a substantial majority in our Phase-II trials, while there will be some contribution from us as well,” Biocon CMD Kiran Mazumdar-Shaw said. Industry analysts indicated Phase II trials in such scenarios would cost around $15 million.
The Phase-II trials will be spread over two years and there will subsequently be Phase-III trials for around three years, during which there will be pivotal and multiple tests.
If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase-II trial, BMS will assume full responsibility for the programme, including all development and commercialisation activities outside India.
Biocon will receive a licence fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India.
Biocon will use BMS’ expertise in clinical trials and get help in redesigning Phase-II trials of the blockbuster drug. Biocon has been working on this drug since 2004 and has so far spent close to $20 million. It had started the programme by partnering US-based Nobex, but later taken control as the latter declared bankruptcy in late 2005.
BMS has a strong presence in the diabetes segment, but in the space of drugs that enable delay in insulin intake. As the partnership goes further, it will possibly mark its entry into the insulin space.
Oral insulin is a drug that has been elusive for many players globally. Only a handful of global majors, including Novo Nordisk, are working in this space. When this product comes into the market , it will bring about a big change, not only to the companies but also the millions of diabetics who have to go through the pain of injection pricks very frequently.
“While there are difficulties in developing an oral insulin, the principle aspect is that insulin is a difficult drug to ingest orally. It is a protein that degrades in the stomach and small intestine. This makes it difficult to design oral delivery. So, companies have to work on mechanisms on how to protect this protein in the human system until it starts to work,” an industry analyst detailed.
Biocon, too, had stumbled on its trials in early 2011, when the initial data analysis showed IN-105 did not meet its primary end point of lowering the average level of blood sugar by 0.7 per cent.
Under its agreement with Biocon, BMS will have the right to exercise an option to obtain an exclusive worldwide licence to the programme. Biocon will conduct clinical studies to further characterise IN-105’s clinical profile according to a pre-agreed development programme up to the completion of Phase II. “BMS will invest a substantial majority in our Phase-II trials, while there will be some contribution from us as well,” Biocon CMD Kiran Mazumdar-Shaw said. Industry analysts indicated Phase II trials in such scenarios would cost around $15 million.
The Phase-II trials will be spread over two years and there will subsequently be Phase-III trials for around three years, during which there will be pivotal and multiple tests.
If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase-II trial, BMS will assume full responsibility for the programme, including all development and commercialisation activities outside India.
Biocon will receive a licence fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India.
L&T Hyderabad Metro awards contracts to Thales
Hyderabad: L&T Hyderabad Metro Ltd has awarded signalling and train control contracts to Thales Canada & Thales India and a communications system deal to Thales Portugal. The €13-billion defence, aerospace and transport major Thales has outbid Siemens and Bombardier, which were also in the fray.
V.B. Gadgil, Chief Executive and Managing Director, LTMRHL, said, “The Hyderabad metro project will be first in the country to run on a communication-based train control system. Our endeavour is to bring the best of international players in metro rail technology to make the project world-class.”
Addressing a press conference along with N.V.S. Reddy, Managing Director, Hyderabad Metro Rail, he said: “L&T is committed to completing the project ahead of July 2017. The 72-km elevated metro rail project will be executed in six phases and we will commence operations once some of these phases are completed.”
Reliable system
“The advanced communication system deployed in several projects across the world will provide a secure and reliable communication system. It will have the capability to run one train every 90 seconds, each side. Each train, with three coaches initially, can take about 1,000 people and with six coaches 2,000 people,” Reddy explained.
Gadgil said L&T has thus far invested Rs 850 crore on the project. Recently, bankers have re-appraised the debt component of the project, which achieved financial closure last year.
Of the Rs 16,500-crore project, about Rs 2,000 crore is being deployed by the Government for facilitation work.
The L&T team indicated that the complex viaduct erection work will commence shortly.
Other Contracts
Gadgil said three other contracts will be finalised by December-end. These include an automatic fare collection facility, contract for supply and erection of elevators at entry and exit points of stations and workshop equipment.
Designs for about 18.5 million sq. ft of transit-oriented development are being assessed. This was taken up after a detailed study, Gadgil said.
Reddy said most of the land acquisition has been concluded and was confident that the remaining part would be completed as work progresses. He said efforts have been made to ensure no heritage or religious structure is impacted by the project.
V.B. Gadgil, Chief Executive and Managing Director, LTMRHL, said, “The Hyderabad metro project will be first in the country to run on a communication-based train control system. Our endeavour is to bring the best of international players in metro rail technology to make the project world-class.”
Addressing a press conference along with N.V.S. Reddy, Managing Director, Hyderabad Metro Rail, he said: “L&T is committed to completing the project ahead of July 2017. The 72-km elevated metro rail project will be executed in six phases and we will commence operations once some of these phases are completed.”
Reliable system
“The advanced communication system deployed in several projects across the world will provide a secure and reliable communication system. It will have the capability to run one train every 90 seconds, each side. Each train, with three coaches initially, can take about 1,000 people and with six coaches 2,000 people,” Reddy explained.
Gadgil said L&T has thus far invested Rs 850 crore on the project. Recently, bankers have re-appraised the debt component of the project, which achieved financial closure last year.
Of the Rs 16,500-crore project, about Rs 2,000 crore is being deployed by the Government for facilitation work.
The L&T team indicated that the complex viaduct erection work will commence shortly.
Other Contracts
Gadgil said three other contracts will be finalised by December-end. These include an automatic fare collection facility, contract for supply and erection of elevators at entry and exit points of stations and workshop equipment.
Designs for about 18.5 million sq. ft of transit-oriented development are being assessed. This was taken up after a detailed study, Gadgil said.
Reddy said most of the land acquisition has been concluded and was confident that the remaining part would be completed as work progresses. He said efforts have been made to ensure no heritage or religious structure is impacted by the project.
JLR, Chery start work on China plant
Pune: Jaguar Land Rover, a wholly-owned subsidiary of Tata Motors, and Chinese car maker Chery Automobile Company Ltd, have received approval to set up a new manufacturing facility in China. The equal partnership, to be called Chery Jaguar Land Rover Automotive Company Ltd, will manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.
JLR and Chery will accelerate plans to build the plant in Changshu, near Shanghai, as part of a 10.9-billion yuam (RMB) investment that will include a new research and development centre and an engine facility for production of fuel-efficient engines.
A Reuters report said that Jaguar Land Rover and Chery Automobile had laid the foundation stone for a new car factory in Changshu, China, near Shanghai. The two companies plan to complete work on the facility in 2014.
The project includes creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including their marketing and distribution.
The partnership follows the rapid expansion of marquee British brands Jaguar and Land Rover in China, where sales rose 80 per cent in the first 10 months of the current calendar year.
In 2011, Jaguar Land Rover sales jumped over 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.
Chery is the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, with 15 years’ experience in the automobile industry.
In 2005, sales in China accounted for 1 per cent of combined Jaguar and Land Rover sales. It is now one of Jaguar Land Rover’s main markets and is still growing.
JLR and Chery will accelerate plans to build the plant in Changshu, near Shanghai, as part of a 10.9-billion yuam (RMB) investment that will include a new research and development centre and an engine facility for production of fuel-efficient engines.
A Reuters report said that Jaguar Land Rover and Chery Automobile had laid the foundation stone for a new car factory in Changshu, China, near Shanghai. The two companies plan to complete work on the facility in 2014.
The project includes creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including their marketing and distribution.
The partnership follows the rapid expansion of marquee British brands Jaguar and Land Rover in China, where sales rose 80 per cent in the first 10 months of the current calendar year.
In 2011, Jaguar Land Rover sales jumped over 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.
Chery is the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, with 15 years’ experience in the automobile industry.
In 2005, sales in China accounted for 1 per cent of combined Jaguar and Land Rover sales. It is now one of Jaguar Land Rover’s main markets and is still growing.
Govt plans easier funding for solar, wind projects
New Delhi: The Government is looking at adopting the viability gap funding model for the second phase of the National Solar Mission, said Gireesh B. Pradhan, Secretary, Ministry for New and Renewable Energy.
Implementing this model would mean a developer will be asked to state the amount the company would require to meet the designated tariff, Pradhan said at an industry event organised by the Centre for Science and Environment. The draft policy for the second phase of solar mission would be released in a week, Pradhan said.
The solar market in India can reach 68 GW by 2022, unlike the Jawaharlal Nehru National Solar Mission target of 20 GW, said Alan Rosling, Chairman and Founder of Kiran Energy.
In addition, the MNRE is also in the process of unveiling an incentivised package for wind energy. The Government is looking at increasing the generation-based incentive for wind energy producers, Pradhan indicated.
Implementing this model would mean a developer will be asked to state the amount the company would require to meet the designated tariff, Pradhan said at an industry event organised by the Centre for Science and Environment. The draft policy for the second phase of solar mission would be released in a week, Pradhan said.
The solar market in India can reach 68 GW by 2022, unlike the Jawaharlal Nehru National Solar Mission target of 20 GW, said Alan Rosling, Chairman and Founder of Kiran Energy.
In addition, the MNRE is also in the process of unveiling an incentivised package for wind energy. The Government is looking at increasing the generation-based incentive for wind energy producers, Pradhan indicated.
Friday, November 2, 2012
LOTS Shipping Ltd is entering coastal shipping with M V Beypore Sultan
Kochi: LOTS Shipping Ltd, India's premier inland water transport company, is entering coastal shipping with M V Beypore Sultan, the first indigenously built Type IV river sea container vessel in the country.
The ship built at the company-owned yard at Edakochi called Master Shipyard Pvt Ltd is capable of carrying 81 TEUs (Twenty Foot Equivalent units). It is being launched into the water on November 2. The coastal shipping is expected to benefit exporters and importers from the hinterland of minor ports in Kerala such as Beypore, Azhikkal, Thangassery, Vizinjam, Mangalore and Tuticorin apart from reducing the pressure on roads.
Capt Philip Mathews, managing director, Lots Shipping said that M V Beypore Sultan is the first river sea type IV container vessel to be introduced in the West Coast of India. The vessel will carry containers from Mangalore to Kochi at a lower cost. "There will be a savings of 30 to 35 % in the cost of cargo movement if river sea vessels are employed", he said.
Lots Shipping will be add 10 more vessels to its fleet in the next 3 years. The cost of a container cargo vessel would be above Rs 15 crore whereas the case of river sea container vessel was built at a cost of Rs 12 crore only, company spokesmen said. This will be brought down further to Rs 10 crore per vessel in the coming days.
The Type IV river sea vessel is an all weather vessel that can go any port in the country. The M V Beypore Sultan is the first such vessel being built as the India river sea rules announced in 2008. As the service is being provided at a reduced rate the relaxation of Cabotage law will not affect the company, Capt. Philip Mathews said.
The ship built at the company-owned yard at Edakochi called Master Shipyard Pvt Ltd is capable of carrying 81 TEUs (Twenty Foot Equivalent units). It is being launched into the water on November 2. The coastal shipping is expected to benefit exporters and importers from the hinterland of minor ports in Kerala such as Beypore, Azhikkal, Thangassery, Vizinjam, Mangalore and Tuticorin apart from reducing the pressure on roads.
Capt Philip Mathews, managing director, Lots Shipping said that M V Beypore Sultan is the first river sea type IV container vessel to be introduced in the West Coast of India. The vessel will carry containers from Mangalore to Kochi at a lower cost. "There will be a savings of 30 to 35 % in the cost of cargo movement if river sea vessels are employed", he said.
Lots Shipping will be add 10 more vessels to its fleet in the next 3 years. The cost of a container cargo vessel would be above Rs 15 crore whereas the case of river sea container vessel was built at a cost of Rs 12 crore only, company spokesmen said. This will be brought down further to Rs 10 crore per vessel in the coming days.
The Type IV river sea vessel is an all weather vessel that can go any port in the country. The M V Beypore Sultan is the first such vessel being built as the India river sea rules announced in 2008. As the service is being provided at a reduced rate the relaxation of Cabotage law will not affect the company, Capt. Philip Mathews said.
Tripura to take 10% stake in ONGC-Tata Chemicals Rs 5,000-cr urea plant
Bengaluru: Tripura will pick up 10% stake in the proposed joint venture of ONGC and Tata Chemicals for setting up a Rs 5,000-crore gas-based urea plant in Tripura.
In the project, Tata Chemicals and ONGC will have 50% and 40% stake, respectively. Tripura Chief Minister Manik Sarkar, after the cabinet meeting, said in Agartala that ONGC has sought expression of interest for setting up of the urea plant.
The chief minister said that Rs 2,000 crore of total project cost would be raised from equities. "We will provide land of about 800-1000 acre for the establishment."
He said: "The ONGC has decided to set up a methanol-urea plant using natural gas available in north Tripura. The plant is expected to start using gas deposits of Khubal of Dhalai district, location of the plant is yet to be finalised."
The CM has directed district magistrates of both districts to choose the locations after discussion of forest officials. According to Sarkar, the plant would immensely benefit Bihar, Jharkhand, West Bengal and several other states. Neighbouring Bangladesh is also likely to receive urea from the plant.
The project would take 44-48 months to start operation. ONGC had engaged Noidabased Projects & Development India (PDIL) to study the feasibility of the proposed project. Public sector unit Brahmaputra Valley Fertiliser Corporation (BVFCL), which is the only urea producing unit in the entire Northeast, is witnessing plummeting production. Northeast requires 2.5 lakh tonne urea annually.
In the project, Tata Chemicals and ONGC will have 50% and 40% stake, respectively. Tripura Chief Minister Manik Sarkar, after the cabinet meeting, said in Agartala that ONGC has sought expression of interest for setting up of the urea plant.
The chief minister said that Rs 2,000 crore of total project cost would be raised from equities. "We will provide land of about 800-1000 acre for the establishment."
He said: "The ONGC has decided to set up a methanol-urea plant using natural gas available in north Tripura. The plant is expected to start using gas deposits of Khubal of Dhalai district, location of the plant is yet to be finalised."
The CM has directed district magistrates of both districts to choose the locations after discussion of forest officials. According to Sarkar, the plant would immensely benefit Bihar, Jharkhand, West Bengal and several other states. Neighbouring Bangladesh is also likely to receive urea from the plant.
The project would take 44-48 months to start operation. ONGC had engaged Noidabased Projects & Development India (PDIL) to study the feasibility of the proposed project. Public sector unit Brahmaputra Valley Fertiliser Corporation (BVFCL), which is the only urea producing unit in the entire Northeast, is witnessing plummeting production. Northeast requires 2.5 lakh tonne urea annually.
TN to get Rs 20,925-cr investment from 12 major projects
Chennai: Tamil Nadu is to attract a cumulative investment of Rs 20,925 crore from 12 major industrial projects. This includes new and expansion projects. This investment is likely to give direct employment to 36,855 people and indirectly to about a lakh.
On November 5, the 12 companies will sign agreements with the State Government said J. Jayalalithaa in the State Assembly.
The State Cabinet, which met on October 27, cleared five major projects. This includes the Rs 4,000-crore expansion project of Hyundai at its Sriperumbudur plant; the Rs 4,500-crore synthetic fibre manufacturing facility of Indo Rama and the Rs 2,325-crore joint venture between BGR Energy and Hitachi group for turbine manufacturing, said a State Government press release.
The Cabinet also cleared the setting up of a textile park in Coimbatore by ADD Industrial Park in 2,200 acres. In the first year of operations, the park will provide jobs for nearly 2,000 people and in the seventh year to around 25,000.
Saint Gobain is expanding its facility at Sriperumbdur at a cost of Rs 400 crore to provide employment to around 500 people, the release said.
The Cabinet, which met on October 26, cleared the Rs 4,100-crore fibre glass and float glass manufacturing facility of the US-based PPG Industries in joint venture with Harsha Exito Engineering Private Ltd (India). The company will establish a 50-50 joint venture for the manufacture and sale of fibre glass reinforcement product in the Sipcot industrial park in Kancheepuram district.
A State Government press release says that the facility will create a direct employment of around 1,850 people.
The projects to be cleared by the State Cabinet are of the TVS group (Rs 700 crore), Murugappa group (Rs 500 crore), Danfoss (Rs 500 crore), Sanmina-SCI (Rs 250 crore), Nokia (Rs 250 crore) and Alticor Inc (Rs 300 crore), the release said.
On November 5, the 12 companies will sign agreements with the State Government said J. Jayalalithaa in the State Assembly.
The State Cabinet, which met on October 27, cleared five major projects. This includes the Rs 4,000-crore expansion project of Hyundai at its Sriperumbudur plant; the Rs 4,500-crore synthetic fibre manufacturing facility of Indo Rama and the Rs 2,325-crore joint venture between BGR Energy and Hitachi group for turbine manufacturing, said a State Government press release.
The Cabinet also cleared the setting up of a textile park in Coimbatore by ADD Industrial Park in 2,200 acres. In the first year of operations, the park will provide jobs for nearly 2,000 people and in the seventh year to around 25,000.
Saint Gobain is expanding its facility at Sriperumbdur at a cost of Rs 400 crore to provide employment to around 500 people, the release said.
The Cabinet, which met on October 26, cleared the Rs 4,100-crore fibre glass and float glass manufacturing facility of the US-based PPG Industries in joint venture with Harsha Exito Engineering Private Ltd (India). The company will establish a 50-50 joint venture for the manufacture and sale of fibre glass reinforcement product in the Sipcot industrial park in Kancheepuram district.
A State Government press release says that the facility will create a direct employment of around 1,850 people.
The projects to be cleared by the State Cabinet are of the TVS group (Rs 700 crore), Murugappa group (Rs 500 crore), Danfoss (Rs 500 crore), Sanmina-SCI (Rs 250 crore), Nokia (Rs 250 crore) and Alticor Inc (Rs 300 crore), the release said.
Indian investment in Canada at $14 billion
New Delhi: Indian investment in Canada stands at $14 billion, while Canadian investment in India stands at around $5 billion.
The Canadian Prime Minister Stephen Harper will undertake a state visit to India between November 4 and 9. He will be accompanied by three ministers.
The Canadian Prime Minister will visit Delhi, Agra, Chandigarh and Bangalore during his visit, his second visit to the country in the last three years. Bilateral trade between the two countries stands at around $5 billion.
The Canadian Prime Minister Stephen Harper will undertake a state visit to India between November 4 and 9. He will be accompanied by three ministers.
The Canadian Prime Minister will visit Delhi, Agra, Chandigarh and Bangalore during his visit, his second visit to the country in the last three years. Bilateral trade between the two countries stands at around $5 billion.
India-Germany to Achieve Trade Target of 20 Billion Euro this Year: Anand Sharma
New Delhi: The Union Minister of Commerce Industry and Textiles Shri Anand Sharma has said that India and Germany will achieve the trade target of Euro 20 billion (USD 26.16 billion) this year. The trade between the two countries stood at USD 23.566 in 2011. “India and Germany have set a trade target of Euro 20 billion (US$ 26.16 billion) to be achieved by 2012 and I am sure that we will be able to reach this target if not cross it with efforts from both sides,” said Shri Sharma after the meeting with Dr. Phillipp Roesler, Minister of Economic and Technology and Vice Chancellor of the Federal Republic of Germany, here today.
Both the leaders also reviewed the progress of India EU BTIA and expressed the desire that it a balanced and ambitious agreement be reached soon. The Chief negotiators are meeting in Brussels on 8th November and a delegation is coming to this month to pursue the issue of declaring India Data Secure which is an important demand from Indian side. "We have proposed the principal of incremental approach so that what may not happen now can be included later. But what we have on the table from both the sides, it is fairly robust. We will now leave it to negotiators to bring it to its early conclusion .... We will have a ministerial scheduled either for December or January, depends on how fast they (Chief Negotiators) work. That time, hopefully, we will announce the conclusion of the negotiations," Minister Sharma told reporters after the meeting.
Dr Roseler underlined the concerns of their Pharmaceutical industry in the wake of granting of compulsory licence of a cancer medicine to Natco recently. Shri Sharma assured the visiting Minister that India’s action was well within the parameters of TRIPS commitments and the flexibility of compulsory licensing has been used more than 50 times by the developed countries while this was the first time India resorted to this. He said India’s IP structure is fully compliant with its international commitments.
In 2011 Indian export to Germany stood at USD 8.25 billion and import were USD 15.31 billion. FDI inflows from Germany into India is around US$ 4.9 billion and it ranks 8th among investors in India. FDI flow from India into Germany is US $ 5.9 billion in 2011.
The German Minister is participating in 13th Asia-Pacific Conference of German Business which is being held in Gurgaon during 1-3 November, 2012.
Both the leaders also reviewed the progress of India EU BTIA and expressed the desire that it a balanced and ambitious agreement be reached soon. The Chief negotiators are meeting in Brussels on 8th November and a delegation is coming to this month to pursue the issue of declaring India Data Secure which is an important demand from Indian side. "We have proposed the principal of incremental approach so that what may not happen now can be included later. But what we have on the table from both the sides, it is fairly robust. We will now leave it to negotiators to bring it to its early conclusion .... We will have a ministerial scheduled either for December or January, depends on how fast they (Chief Negotiators) work. That time, hopefully, we will announce the conclusion of the negotiations," Minister Sharma told reporters after the meeting.
Dr Roseler underlined the concerns of their Pharmaceutical industry in the wake of granting of compulsory licence of a cancer medicine to Natco recently. Shri Sharma assured the visiting Minister that India’s action was well within the parameters of TRIPS commitments and the flexibility of compulsory licensing has been used more than 50 times by the developed countries while this was the first time India resorted to this. He said India’s IP structure is fully compliant with its international commitments.
In 2011 Indian export to Germany stood at USD 8.25 billion and import were USD 15.31 billion. FDI inflows from Germany into India is around US$ 4.9 billion and it ranks 8th among investors in India. FDI flow from India into Germany is US $ 5.9 billion in 2011.
The German Minister is participating in 13th Asia-Pacific Conference of German Business which is being held in Gurgaon during 1-3 November, 2012.
German certification firm TUV SUD sets up lab in Gurgaon
Mumbai: German testing and certification company TÜV SÜD has set up a laboratory in India, equipped to meet requirements across sectors, from nutritional products and food supplements to leather and toys to jewellery.
Touted to be the company’s largest testing laboratory across India, Bangladesh and Sri Lanka, the lab comes at a time there is greater consumer and regulatory concern on the presence of pesticide residues in food or trace elements in toys, Ishan Palit , Chief Executive of TUV SUD’s product service division told Business Line.
The €1.7 billion company has 10 labs in the country, but the new lab located in Gurgaon will be a hub to service companies in North India, similar to an existing hub in Bangalore for companies in South India. Its other labs are located close to industrial clusters, like Ambur in Tamil Nadu that exports leather products; or labs to certify textile and apparel, located in Mumbai, Delhi and Bangalore.
The company, that has been present in India since 1994, will invest € 5 million (about 35 crore) in the new lab and the other satellite labs, he said. The company clocked revenues of € 20 million (Rs 140 crore) in 2011.
An accredited lab for food testing, the company is also notified to certify medical equipment, he said. The new lab is equipped with technology ranging from handling the physical and chemical aspects of testing, he said. So in food or textile, it would be testing products to check their packaging or ability to withstand handling pressures, and these would be handled separately for different products, he explained. The chemical analysis would involve more sensitive and dedicated equipment to check for antibiotic or pesticide residues in food, azo dyes in textile or lead in toys, he added.
Touted to be the company’s largest testing laboratory across India, Bangladesh and Sri Lanka, the lab comes at a time there is greater consumer and regulatory concern on the presence of pesticide residues in food or trace elements in toys, Ishan Palit , Chief Executive of TUV SUD’s product service division told Business Line.
The €1.7 billion company has 10 labs in the country, but the new lab located in Gurgaon will be a hub to service companies in North India, similar to an existing hub in Bangalore for companies in South India. Its other labs are located close to industrial clusters, like Ambur in Tamil Nadu that exports leather products; or labs to certify textile and apparel, located in Mumbai, Delhi and Bangalore.
The company, that has been present in India since 1994, will invest € 5 million (about 35 crore) in the new lab and the other satellite labs, he said. The company clocked revenues of € 20 million (Rs 140 crore) in 2011.
An accredited lab for food testing, the company is also notified to certify medical equipment, he said. The new lab is equipped with technology ranging from handling the physical and chemical aspects of testing, he said. So in food or textile, it would be testing products to check their packaging or ability to withstand handling pressures, and these would be handled separately for different products, he explained. The chemical analysis would involve more sensitive and dedicated equipment to check for antibiotic or pesticide residues in food, azo dyes in textile or lead in toys, he added.
Hindustan Copper to invest Rs 1,856 crore in MP mine project
Kolkata: Hindustan Copper, the country's largest state-owned copper company is planning to invest Rs 1,856 crore in the Malanjkhand Copper project at Madhya Pradesh.
A memorandum of understanding on this was signed between K D Diwan, chairman-cum-managing director of Hindustan CopperBSE 0.88 % Limited (HCL), and Arun Kumar Bhatt, managing director, MP Trade & Investment Facilitation Corporation Ltd (TRIFAC), government of Madhya Pradesh at the Global Investor Summit 2012 at Indore earlier this week.
The project envisages facilitation of the proposed investment of Rs 1,856 crore in Malanjkhand, where the company wants to construct an underground mine of 5 million tonne facility. It is the single largest copper deposit of India and is estimated to have around 221 million tonne of reserves.
The MoU will enable HCL to obtain necessary clearances, concessions and waivers for the Malanjkhand underground mine project from the state government. The MoU documents were exchanged between Mr Diwan and Mr P K Dash, additional chief secretary, commerce, industry & employment of Madhya Pradesh in the presence of the state's chief minister, Shivraj Singh Chouhan and industry minister, Kailash Vijayvargiya. Mr Diwan had attended the Global Investor Summit 2012 between October 28-30 as a guest of honour at the invitation of Madhya Pradesh state government.
A memorandum of understanding on this was signed between K D Diwan, chairman-cum-managing director of Hindustan CopperBSE 0.88 % Limited (HCL), and Arun Kumar Bhatt, managing director, MP Trade & Investment Facilitation Corporation Ltd (TRIFAC), government of Madhya Pradesh at the Global Investor Summit 2012 at Indore earlier this week.
The project envisages facilitation of the proposed investment of Rs 1,856 crore in Malanjkhand, where the company wants to construct an underground mine of 5 million tonne facility. It is the single largest copper deposit of India and is estimated to have around 221 million tonne of reserves.
The MoU will enable HCL to obtain necessary clearances, concessions and waivers for the Malanjkhand underground mine project from the state government. The MoU documents were exchanged between Mr Diwan and Mr P K Dash, additional chief secretary, commerce, industry & employment of Madhya Pradesh in the presence of the state's chief minister, Shivraj Singh Chouhan and industry minister, Kailash Vijayvargiya. Mr Diwan had attended the Global Investor Summit 2012 between October 28-30 as a guest of honour at the invitation of Madhya Pradesh state government.
GE Capital invests Rs 125cr in Biocon arm
Bangalore: GE Capital, the investment arm of General Electric, has picked up a 7.69% stake for Rs 125 crore in Syngene, a subsidiary of Biocon. The deal values the biotech company's subsidiary at about Rs 1,624 crore. Syngene, a contract research organization, is into drug discovery and development services. Its client list includes Bristol-Myers Squibb, Abbott, Endo Pharma and DuPont.
"This stake investment is not just a financial investment. GE has leading edge expertise in lifescience technologies and we believe that through this investment Syngene has the opportunity to engage with different parts of the GE organization," said Kiran Mazumdar Shaw, CMD, Biocon. She added that the investment would take Biocon closer to its commitment of taking Syngene through an IPO.
Peter Bains, director in Syngene, said GE Capital's investment would "enable the company to expand its integrated discovery and development services platform and help foster strategic partnerships with leading global pharma and biotech companies". Syngene has over 1,500 scientists and reported revenues of Rs 400 crore in 2011-12. In the second half of this financial year, the company had revenues of Rs 250 crore.
"This stake investment is not just a financial investment. GE has leading edge expertise in lifescience technologies and we believe that through this investment Syngene has the opportunity to engage with different parts of the GE organization," said Kiran Mazumdar Shaw, CMD, Biocon. She added that the investment would take Biocon closer to its commitment of taking Syngene through an IPO.
Peter Bains, director in Syngene, said GE Capital's investment would "enable the company to expand its integrated discovery and development services platform and help foster strategic partnerships with leading global pharma and biotech companies". Syngene has over 1,500 scientists and reported revenues of Rs 400 crore in 2011-12. In the second half of this financial year, the company had revenues of Rs 250 crore.
Fidelity Growth Partners injects Rs 400 crore in medical technology firm Trivitron Healthcare
Bangalore: Fidelity Growth Partners India (FGPI), the India-focused private equity arm of Fidelity Worldwide Investment has invested Rs 400 crore in Chennai-headquartered medical technology firm Trivitron Healthcare.
Trivitron will use the funding on acquisitions of companies and technologies in Europe and the United States. The funds will also be used used to enhance the company's distribution operations in South East Asia, Middle East and Africa.
"We aim to become a global player in the imaging and lab diagnostics segment," said Dr GSK Velu, who founded the company in 1997 after a stint at Chiron Diagnostics as country head.
He said Fidelity's knowledge in the medical devices space in China, USA, and Europe will also help the firm to become a global player .
This investment also provides partial exits for ePlanet Ventures and Headland Capital, which have been investors in Trivitron since 2007.
Trivitron has become India's largest distributor and after-sales support provider of medical equipment and devices. These are used in areas such as imaging, cardiology, renal care and ophthalmology.
The medical equipment sector in the country is still nascent and dominated by imports.Fidelity invested in Trivitron, as it expects India will follow the same evolution trajectory as other emerging markets such as China where large, indigenous manufacturers of medical equipment have emerged over the past decade.
"Trivitron is well positioned to capitalize on this trend ," said Raj Dugar, senior managing director at FIL Capital Advisors (India), the advisory team for FGPI.
Trivitron will also use the funding to scale up research and development activities. It has setup medical technology park in Chennai which manufactures medical equipment.
The company recently set up centres of innovation for biomedical equipment in collaboration with the Indian Institute of Technology (IIT), Chennai.
Trivitron aims to clock revenues of Rs 700 crore for FY2012-13 through organic and inorganic routes enabled through this investment round.
This year, the healthcare and life sciences sector has received the maximum investment from private equity and venture capital players, attracting $817 million across 29 investments till August, according to data from private equity focused research firm Venture Intelligence. Last year, there were 38 deals in the sector worth $421 million.
Trivitron will use the funding on acquisitions of companies and technologies in Europe and the United States. The funds will also be used used to enhance the company's distribution operations in South East Asia, Middle East and Africa.
"We aim to become a global player in the imaging and lab diagnostics segment," said Dr GSK Velu, who founded the company in 1997 after a stint at Chiron Diagnostics as country head.
He said Fidelity's knowledge in the medical devices space in China, USA, and Europe will also help the firm to become a global player .
This investment also provides partial exits for ePlanet Ventures and Headland Capital, which have been investors in Trivitron since 2007.
Trivitron has become India's largest distributor and after-sales support provider of medical equipment and devices. These are used in areas such as imaging, cardiology, renal care and ophthalmology.
The medical equipment sector in the country is still nascent and dominated by imports.Fidelity invested in Trivitron, as it expects India will follow the same evolution trajectory as other emerging markets such as China where large, indigenous manufacturers of medical equipment have emerged over the past decade.
"Trivitron is well positioned to capitalize on this trend ," said Raj Dugar, senior managing director at FIL Capital Advisors (India), the advisory team for FGPI.
Trivitron will also use the funding to scale up research and development activities. It has setup medical technology park in Chennai which manufactures medical equipment.
The company recently set up centres of innovation for biomedical equipment in collaboration with the Indian Institute of Technology (IIT), Chennai.
Trivitron aims to clock revenues of Rs 700 crore for FY2012-13 through organic and inorganic routes enabled through this investment round.
This year, the healthcare and life sciences sector has received the maximum investment from private equity and venture capital players, attracting $817 million across 29 investments till August, according to data from private equity focused research firm Venture Intelligence. Last year, there were 38 deals in the sector worth $421 million.
Convention on avoidance of double taxation amended by India and UK
New Delhi: India and the United Kingdom (UK) have made amendments to the convention on avoidance of double taxation, by signing a protocol. The pact will streamline the provisions on partnerships and dividends, besides enhancing the information flow between tax authorities of the two countries.
The pact was signed by Mr Jaimini Bhagwati, High Commissioner of India to the UK, and Mr David Gauke, Exchequer Secretary to the Treasury. The pact relates to the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.
Firms partnering with UK would benefit from the amendment. Further, the withholding taxes on the dividends would be 10 per cent or 15 per cent and would be equally applicable in the UK and India.
Post the amendment, the convention will provide tax stability to the residents of India and the UK and will facilitate economic cooperation between the two nations. It will also encourage the flow of investment, technology and services.
The pact incorporates the provisions for effective exchange of information between the tax authorities of the two countries in line with latest international standards, including exchange of banking information and supplying of information irrespective of domestic interest. It also provides for sharing of information to other agencies with the consent of the supplying state.
The pact further includes the anti-abuse (limitation of benefits) provisions to ensure that the benefits of the convention are not misused.
Further, both the countries would enter into memorandums of understanding (MoUs) to expedite exchange of information and assistance in collection of taxes.
The pact was signed by Mr Jaimini Bhagwati, High Commissioner of India to the UK, and Mr David Gauke, Exchequer Secretary to the Treasury. The pact relates to the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.
Firms partnering with UK would benefit from the amendment. Further, the withholding taxes on the dividends would be 10 per cent or 15 per cent and would be equally applicable in the UK and India.
Post the amendment, the convention will provide tax stability to the residents of India and the UK and will facilitate economic cooperation between the two nations. It will also encourage the flow of investment, technology and services.
The pact incorporates the provisions for effective exchange of information between the tax authorities of the two countries in line with latest international standards, including exchange of banking information and supplying of information irrespective of domestic interest. It also provides for sharing of information to other agencies with the consent of the supplying state.
The pact further includes the anti-abuse (limitation of benefits) provisions to ensure that the benefits of the convention are not misused.
Further, both the countries would enter into memorandums of understanding (MoUs) to expedite exchange of information and assistance in collection of taxes.
Voltech, NanoPV venture to build solar module plant near Chennai
Chennai: The Voltech group of Chennai and the US-based NanoPV have joined hands to put up a 100 MW solar module manufacturing plant near Chennai and a solar park near Tuticorin.
Voltech is a medium-sized group that is into the manufacture of transformers.
Setting up a cell and module manufacturing plant may appear foolhardy at a time when global majors are being toppled by the Chinese companies’ onslaught and the slowdown in the European economy. But NanoPV’s President and CTO, Dr Anna Selvan John, says that the company has unique and patented technology that enables it to be competitive even in this market.
“NanoPV has unique technology based on amorphous and nano-crystalline silicon and proprietary light-trapping and ‘transparent conductive light-trapping oxide’ technologies,” says the company’s Web site. Because of this, compared with conventional solar cells, NanoPV’s cell manufacturing involves one-third the process and takes one-third the cost, and “300 times less amount of material consumption.”
Voltech’s Managing Director, M. Umapathi, said that the group has near Chennai a factory building where it once produced textiles. NanoPV intends to bring in plant and machinery from the US and set up a production line here.
The initial capacity would be 10 MW and would gradually be ramped up. Umapathi estimates the cost of the project to be Rs 100 crore.
Solar farm near Tuticorin
Another joint venture of Voltech and NanoPV is putting up a 100 MW solar farm near Tuticorin. The project will be implemented in phases, and work has begun on the first 10 MW.
In this venture, a UAE-based company called Arab Gulf Pearl Trading is also participating. It has taken 50 per cent of the equity. This project too would cost Rs 100 crore.
Work has commenced on the first 2 MW, which will be completed by March 2013. The other 8 MW will be ready to produce power by the end of 2013, Umapathi said.
NanoPV says that its modules can generate 1.8 million units of electricity per MW each year.
The joint venture intends to enter into power purchase agreements with industrial consumers in the state, forming a ‘group-captive’ structure.
Voltech is a medium-sized group that is into the manufacture of transformers.
Setting up a cell and module manufacturing plant may appear foolhardy at a time when global majors are being toppled by the Chinese companies’ onslaught and the slowdown in the European economy. But NanoPV’s President and CTO, Dr Anna Selvan John, says that the company has unique and patented technology that enables it to be competitive even in this market.
“NanoPV has unique technology based on amorphous and nano-crystalline silicon and proprietary light-trapping and ‘transparent conductive light-trapping oxide’ technologies,” says the company’s Web site. Because of this, compared with conventional solar cells, NanoPV’s cell manufacturing involves one-third the process and takes one-third the cost, and “300 times less amount of material consumption.”
Voltech’s Managing Director, M. Umapathi, said that the group has near Chennai a factory building where it once produced textiles. NanoPV intends to bring in plant and machinery from the US and set up a production line here.
The initial capacity would be 10 MW and would gradually be ramped up. Umapathi estimates the cost of the project to be Rs 100 crore.
Solar farm near Tuticorin
Another joint venture of Voltech and NanoPV is putting up a 100 MW solar farm near Tuticorin. The project will be implemented in phases, and work has begun on the first 10 MW.
In this venture, a UAE-based company called Arab Gulf Pearl Trading is also participating. It has taken 50 per cent of the equity. This project too would cost Rs 100 crore.
Work has commenced on the first 2 MW, which will be completed by March 2013. The other 8 MW will be ready to produce power by the end of 2013, Umapathi said.
NanoPV says that its modules can generate 1.8 million units of electricity per MW each year.
The joint venture intends to enter into power purchase agreements with industrial consumers in the state, forming a ‘group-captive’ structure.
AkzoNobel sets up analytical centre
Kolkata: AkzoNobel India has set up a well-equipped ‘analytical centre” to provide better products and faster services to its customers.
The centre has been located at the company’s international research lab in Bangalore, according to AkzoNobel spokesperson.
Called India Analytical Centre (IAC), the centre will leverage AkzoNobel’s global and local resources to provide quality analytical services to meet the needs of AkzoNobel India’s coatings businesses.
The centre will have the ability to evaluate and certify raw materials, intermediates and products used within the country.
IAC will help in evaluating AkzoNobel products to meet local regulations and specifications. It will also support in making the company a leader in coatings industry in India by providing the right colour solutions.
Instrument technologies
The centre is equipped with instrument technologies like spectroscopy, critical in maintaining the quality standards in raw materials such as resins; rheology used to study the flow and viscosity profile of products in product development and application, and those for thermal analysis and corrosion studies which allow technicians to evaluate product durability under different conditions and over different substrates.
The centre has been located at the company’s international research lab in Bangalore, according to AkzoNobel spokesperson.
Called India Analytical Centre (IAC), the centre will leverage AkzoNobel’s global and local resources to provide quality analytical services to meet the needs of AkzoNobel India’s coatings businesses.
The centre will have the ability to evaluate and certify raw materials, intermediates and products used within the country.
IAC will help in evaluating AkzoNobel products to meet local regulations and specifications. It will also support in making the company a leader in coatings industry in India by providing the right colour solutions.
Instrument technologies
The centre is equipped with instrument technologies like spectroscopy, critical in maintaining the quality standards in raw materials such as resins; rheology used to study the flow and viscosity profile of products in product development and application, and those for thermal analysis and corrosion studies which allow technicians to evaluate product durability under different conditions and over different substrates.
SP Jain School to open its third international campus at Sydney
Mumbai: SP Jain School of Global Management on Monday announced the launch of its third international campus at the Sydney Olympic Park in Australia. "Business has gone global and business schools need to go global too," said Nitish Jain, president of SP Jain, at the launch.
Earlier, the global business school opened campuses in Dubai in 2004 and Singapore in 2006. The tri-city model of SP Jain will offer students an opportunity to understand global business at an early age, Jain said.
"We have chosen three of the most iconic cities for students, all of which are world-class and home to several multinational companies, but are different culturally. The choice of locations was based on the fact that it should give maximum diversity of learning to students."
The Sydney campus will be inaugurated on December 1, and will start with 150 students, including 50 undergrads. It will offer a four-year Bachelor of Business Administration (BBA), 12-month Master of Global Business (MGB) and 12-month Global MBA. A 12-month MBA programme will cost about $30,000 and a four-year BBA programme will cost around $16,000-17,000, and students will spend part of the course in each of the three global campuses.
Earlier, the global business school opened campuses in Dubai in 2004 and Singapore in 2006. The tri-city model of SP Jain will offer students an opportunity to understand global business at an early age, Jain said.
"We have chosen three of the most iconic cities for students, all of which are world-class and home to several multinational companies, but are different culturally. The choice of locations was based on the fact that it should give maximum diversity of learning to students."
The Sydney campus will be inaugurated on December 1, and will start with 150 students, including 50 undergrads. It will offer a four-year Bachelor of Business Administration (BBA), 12-month Master of Global Business (MGB) and 12-month Global MBA. A 12-month MBA programme will cost about $30,000 and a four-year BBA programme will cost around $16,000-17,000, and students will spend part of the course in each of the three global campuses.
L&T Infra inks Rs 100-cr deal with Australian software firm
Mumbai: L&T Infrastructure Development Projects (L&T IDPL) has signed an Rs 100-crore MoU with Australian software company Sensen Networks for implementing a closed circuit TV-based data analytics technology.
The technology uses optical character recognition to read (number plates of vehicles at a toll plaza) all fonts in various languages. The deal would be spread over three years and the technology would be implemented at 35 toll plazas that L&T IDPL handles.
The MoU was facilitated by the trade delegation of the state of Victoria, Australia. The delegation was led by Victoria’s Minister Louise Asher. The technology is expected to substantially bring down leakage in revenue for the concession holder of a toll plaza.
The technology uses optical character recognition to read (number plates of vehicles at a toll plaza) all fonts in various languages. The deal would be spread over three years and the technology would be implemented at 35 toll plazas that L&T IDPL handles.
The MoU was facilitated by the trade delegation of the state of Victoria, Australia. The delegation was led by Victoria’s Minister Louise Asher. The technology is expected to substantially bring down leakage in revenue for the concession holder of a toll plaza.
Sweden, India seek to share energy tech know-how
Hyderabad: Swedish energy technology companies are keen to collaborate and mutually share know-how with Indian companies apart from learning some of the best practices followed here.
Addressing the CII Green Business Congress here today, Marita Ljung, State Secretary, Ministry of Enterprise, Energy and Communication, Sweden, said that global warming continue to be a major challenge and there is immense pressure on natural resources.
The climate change poses a great challenge for all of us with the immediate target are to bring down by at least 2 per cent. We cannot go on this way. Innovation is key to address this and ensure sustainability. This will be possible only by research and development, she felt.
She said there is need to change norms and attitude of people towards conservation.
Later, speaking at the Swedish Energy Agency stall at the exposition, she said that there is heightened interest in cooperation between Indian and Swedish technology companies.
Ludvig Lindstorm, Senior Program Manager, Swedish Energy Agency, said that the potential for cooperation is huge following the National Innovation Council visit to Sweden last year. Apart from potential to work together by forming joint venture companies, there are opportunities for collaboration between companies in both the countries. This will also lead to investments as companies collaborate.
Referring to some of the companies which are keen to work with Indian companies, he said Absolicon Solar is into solar collectors, ClimaCheck is into tech for heating and cooling systems, Nlab Solar is focussing on due sensitised solar cells. Several others are also keen to learn from Indian companies, he said.
Addressing the CII Green Business Congress here today, Marita Ljung, State Secretary, Ministry of Enterprise, Energy and Communication, Sweden, said that global warming continue to be a major challenge and there is immense pressure on natural resources.
The climate change poses a great challenge for all of us with the immediate target are to bring down by at least 2 per cent. We cannot go on this way. Innovation is key to address this and ensure sustainability. This will be possible only by research and development, she felt.
She said there is need to change norms and attitude of people towards conservation.
Later, speaking at the Swedish Energy Agency stall at the exposition, she said that there is heightened interest in cooperation between Indian and Swedish technology companies.
Ludvig Lindstorm, Senior Program Manager, Swedish Energy Agency, said that the potential for cooperation is huge following the National Innovation Council visit to Sweden last year. Apart from potential to work together by forming joint venture companies, there are opportunities for collaboration between companies in both the countries. This will also lead to investments as companies collaborate.
Referring to some of the companies which are keen to work with Indian companies, he said Absolicon Solar is into solar collectors, ClimaCheck is into tech for heating and cooling systems, Nlab Solar is focussing on due sensitised solar cells. Several others are also keen to learn from Indian companies, he said.
TCS to set up software development campus in Indore
Mumbai/ Pune: IT services company Tata Consultancy Services has announced that it will set up operations in Madhya Pradesh by building a new integrated campus in Indore for IT and BPO.
The initial investment in the project will be Rs 550 crore in the first phase. The total development area of the campus is expected to be around 1.5 million square feet. Once all the applicable permissions are received, the construction of Phase I is expected to be completed by March 2016.
The campus will be located on a 100-acre property allotted by the Madhya Pradesh Government.
“Indore has the potential to become another big hub for knowledge-based industries like IT and BPO with its strong eco-system of universities and talented people. Our investment will help catalyse further development of the talent ecosystem as well as help upgrade the civic infrastructure in the area,” TCS Chief Financial Officer and Executive Director S. Mahalingam said.
“We remain committed to working in close collaboration with all stakeholders in the State to help the development of local talent and provide our customers with world-class IT and BPO solutions from this location,” it added.
On completion, the Tata group company expects to offer direct jobs to 10,000 associates in phase-I, it said in a statement.
There is an estimated indirect job opportunity for another 10,000 people in supporting functions and professions such as e-waste management, facilities management, transportation, hotels and hospitality, restaurants, utilities and financial, banking and other services.
Moreover, during the design and construction phase of about four years, there will be employment opportunities for about 2,500 construction workers.
The initial investment in the project will be Rs 550 crore in the first phase. The total development area of the campus is expected to be around 1.5 million square feet. Once all the applicable permissions are received, the construction of Phase I is expected to be completed by March 2016.
The campus will be located on a 100-acre property allotted by the Madhya Pradesh Government.
“Indore has the potential to become another big hub for knowledge-based industries like IT and BPO with its strong eco-system of universities and talented people. Our investment will help catalyse further development of the talent ecosystem as well as help upgrade the civic infrastructure in the area,” TCS Chief Financial Officer and Executive Director S. Mahalingam said.
“We remain committed to working in close collaboration with all stakeholders in the State to help the development of local talent and provide our customers with world-class IT and BPO solutions from this location,” it added.
On completion, the Tata group company expects to offer direct jobs to 10,000 associates in phase-I, it said in a statement.
There is an estimated indirect job opportunity for another 10,000 people in supporting functions and professions such as e-waste management, facilities management, transportation, hotels and hospitality, restaurants, utilities and financial, banking and other services.
Moreover, during the design and construction phase of about four years, there will be employment opportunities for about 2,500 construction workers.
MP signs deals worth Rs 35,936 crore
Indore: Participants at the Global Investors Summit here were pleasantly surprised at the “rocket-like” speed of the state administration to clear business proposals.
A five-star hotel has become the makeshift secretariat of the Madhya Pradesh government during the two-day summit. Work was on 24x7 to facilitate meetings between the government officials and investors.
On Sunday night, the officials, especially of the industries department, reviewed preparations for the inaugural function of the meet at Labh Ganga Convention Centre, situated close to the hotel. Hindustan Copper and SEL Manufacturing expressed surprise at the speed with which their proposals were scanned by the state government officials. The investors signed memoranda of understanding (MoUs) at 12 midnight.Hindustan Copper proposes to invest Rs 2,000 crore at Balaghat in Madhya Pradesh. SEL Manufacturing has firmed up plans to invest Rs 7,000 crore in the state. A visibly charged chief minister, Shivraj Singh Chouhan, and the additional chief secretary (industries), P Dash, said they were happy at the flow of investors and their confidence in the leadership and administration.
“There is a single-table model, where any investor can meet me on Monday with my officials to discuss investment proposals and the problems faced by them. There is no donation business. All decisions are taken in a transparent manner,” said Chouhan. During the first day of the summit, Reliance ADAG Chairman Anil Ambani announced an investment of Rs 20,000 crore in power and cement, in addition to the proposed Rs 30,000 crore in coal mining, power and cement sectors in the state. The company would soon enter into an MoU with the state government.
Similarly, Procter & Gamble CEO Shantanu Khosla also announced an investment of Rs 1,000 crore in health care. This is in addition to a plant in operation near Bhopal.
Further, the government signed MoUs worth Rs 24,370 crore in integrated steel, food processing, urea production, hospital and auto components sectors. Some of the agreements signed include Amtek Metal & Mining for an integrated steel plant and an auto park (Rs 9,000 crore); Future Ventures for an integrated food park (Rs 2,500 crore); SAIL for an iron ore beneficiation plant (Rs 5,000 crore); Zuari Fertilisers & Chemicals for urea production (Rs 5,150 crore); Bharat Forge for an auto component plant (Rs 1,880 crore); DMUL Asia Solar Energy for a 100-MW project (Rs 1,000 crore); Cadbury India (Rs 550 crore); TCS for an IT unit (Rs 410 crore); Hudco for infrastructure project (Rs 2,000 crore).
During the session on infrastructure development, the government signed facilitation MoUs worth Rs 11,566 crore, apart from Hudco’s investment to strengthen urban water supply and urban infrastructure.
A five-star hotel has become the makeshift secretariat of the Madhya Pradesh government during the two-day summit. Work was on 24x7 to facilitate meetings between the government officials and investors.
On Sunday night, the officials, especially of the industries department, reviewed preparations for the inaugural function of the meet at Labh Ganga Convention Centre, situated close to the hotel. Hindustan Copper and SEL Manufacturing expressed surprise at the speed with which their proposals were scanned by the state government officials. The investors signed memoranda of understanding (MoUs) at 12 midnight.Hindustan Copper proposes to invest Rs 2,000 crore at Balaghat in Madhya Pradesh. SEL Manufacturing has firmed up plans to invest Rs 7,000 crore in the state. A visibly charged chief minister, Shivraj Singh Chouhan, and the additional chief secretary (industries), P Dash, said they were happy at the flow of investors and their confidence in the leadership and administration.
“There is a single-table model, where any investor can meet me on Monday with my officials to discuss investment proposals and the problems faced by them. There is no donation business. All decisions are taken in a transparent manner,” said Chouhan. During the first day of the summit, Reliance ADAG Chairman Anil Ambani announced an investment of Rs 20,000 crore in power and cement, in addition to the proposed Rs 30,000 crore in coal mining, power and cement sectors in the state. The company would soon enter into an MoU with the state government.
Similarly, Procter & Gamble CEO Shantanu Khosla also announced an investment of Rs 1,000 crore in health care. This is in addition to a plant in operation near Bhopal.
Further, the government signed MoUs worth Rs 24,370 crore in integrated steel, food processing, urea production, hospital and auto components sectors. Some of the agreements signed include Amtek Metal & Mining for an integrated steel plant and an auto park (Rs 9,000 crore); Future Ventures for an integrated food park (Rs 2,500 crore); SAIL for an iron ore beneficiation plant (Rs 5,000 crore); Zuari Fertilisers & Chemicals for urea production (Rs 5,150 crore); Bharat Forge for an auto component plant (Rs 1,880 crore); DMUL Asia Solar Energy for a 100-MW project (Rs 1,000 crore); Cadbury India (Rs 550 crore); TCS for an IT unit (Rs 410 crore); Hudco for infrastructure project (Rs 2,000 crore).
During the session on infrastructure development, the government signed facilitation MoUs worth Rs 11,566 crore, apart from Hudco’s investment to strengthen urban water supply and urban infrastructure.
India to become teleport hub: I&B secy
New Delhi: The government is planning to make India a teleport hub, enabling it to become an up-linking/downlinking centre, such as Hong Kong and Singapore.
The Ministry of Information and Broadcasting (I&B) will hold consultations with industry very soon to explore modalities, challenges and finalise the road map for the same, said I&B secretary Uday Kumar Verma, at the CII Media & Entertainment Summit, here today.
“The initiative will bring on foreign investment, better technology and sustainable employment opportunities,” Verma said. The government’s recent decision to allow 74 per cent of foreign direct investment (FDI) in DTH, IPTV, mobile TV and so on are some of the steps that have been taken in this direction, he added.
Varma also said that the empowered group of ministers (EGoM) is looking into some of the grey areas in the auction of 839 new FM radio stations across over 290 towns and cities in the country. “We hope to complete the auction of the first tranche of stations by the end of the financial year,” he added.
The proposed National Film Heritage Mission (NFHM), which would undertake frame-by-frame picture and sound restore more than 2,500 important films, would have a budget of Rs 400 crore, and would also look at constructing preservation vaults to international standards for archiving the restored material and for conducting workshops and training, Verma said.
The ministry is also planning to set up a Film Commission that would enable institution of a single window clearance system for shooting in India. The ministry has already signed an agreement with the Ministry of Tourism to work towards promoting India as a global film shooting destination.
On digitization, Verma said that about 45,000-50,000 set top boxes are being installed every day, and the first phase of digitization would be completed within the stipulated dateline.
The Ministry of Information and Broadcasting (I&B) will hold consultations with industry very soon to explore modalities, challenges and finalise the road map for the same, said I&B secretary Uday Kumar Verma, at the CII Media & Entertainment Summit, here today.
“The initiative will bring on foreign investment, better technology and sustainable employment opportunities,” Verma said. The government’s recent decision to allow 74 per cent of foreign direct investment (FDI) in DTH, IPTV, mobile TV and so on are some of the steps that have been taken in this direction, he added.
Varma also said that the empowered group of ministers (EGoM) is looking into some of the grey areas in the auction of 839 new FM radio stations across over 290 towns and cities in the country. “We hope to complete the auction of the first tranche of stations by the end of the financial year,” he added.
The proposed National Film Heritage Mission (NFHM), which would undertake frame-by-frame picture and sound restore more than 2,500 important films, would have a budget of Rs 400 crore, and would also look at constructing preservation vaults to international standards for archiving the restored material and for conducting workshops and training, Verma said.
The ministry is also planning to set up a Film Commission that would enable institution of a single window clearance system for shooting in India. The ministry has already signed an agreement with the Ministry of Tourism to work towards promoting India as a global film shooting destination.
On digitization, Verma said that about 45,000-50,000 set top boxes are being installed every day, and the first phase of digitization would be completed within the stipulated dateline.
India sees deals of $437.3 million in Q3 in the wind energy sector
Kolkata: Amidst rough winds in the global wind energy sector and transition in Indian wind energy markets, deals of $437.3 million (Rs 2348.30 crore) struck during the third quarter.
According to Mercom Capital Group notable Indian transactions included a $15.3 million corporate venture capital funding raised by Trishe Developers, a Chennai-based renewable energy infrastructure company with a focus on wind-power infrastructure development: a $141 million large-scale project funding raised by NuPower Renewables for its 150 MW wind power project in Tamil Nadu: A $281 million debt funding raised by Suzlon EnergyBSE -0.32 % in short-term loans to repay holders of its foreign convertible bonds, signing an 18 month loan facility with 11 lenders.
It also saw acquisition of National Wind, a US-based wind project developer by the Chennai-based Trishe Wind Energy, an international wind energy project developer.
Venture Capital (VC) funding in the third quarter of 2012 amounted to $57 million in six deals compared to a weak second quarter where $17 million went into three deals. Disclosed VC deals this quarter included $21.5 million raised by Mainstream Renewable Power and $15.3 million raised by Trishe Developers, both wind project developers.
Announced large-scale project funding in Q3 2012 totaled $1.1 billion in 11 deals, all going to onshore projects.
Top large-scale project funding deals announced in the third quarter included $350 million raised by Nareva Renouvelables and Kharabel FZE for its 300 MW Tarfaya Wind Project in Morocco, $165 million raised by Alto Holding for its 120 MW Karaburun Wind Farm in Turkey, and $141 million raised by NuPower Renewables for its 150 MW onshore wind farm in India. Other top deals were $86 million raised by InfraVest and wpd for its 53 MW Tongyuan Wind Project in Taiwan and the $85 million loan to Newcom for its 50 MW Salkhit Wind Farm in Mongolia.
Only one of 18 large-scale project funding investors, KfW IPEX-Bank, was involved in multiple deals in Q3 2012. KfW IPEX-Bank was also involved in multiple deals in Q2 2012.
Corporate Merger and Acquisition (M&A) activity in Q3 2012 amounted to $53 million in 11 transactions compared to $93 million in five transactions in Q2 2012. Disclosed M&A transactions this quarter were the $33.2 million acquisition of Shear Wind, a developer of wind energy properties in Canada, by Sprott Power Corp, and the $20 million acquisition of certain assets of Otter Tail Corporation's DMI Industries, a manufacturer of wind towers, by Trinity Industries.
There were four debt funding deals announced in Q3 2012 totaling $359 million. Suzlon Energy raised $281 million in short-term loans to repay holders of its foreign convertible bonds, signing an 18 month loan facility with 11 lenders. Mainstream Renewable Power secured a credit facility of $51 million from Macquarie Group. Finally, Broad Wind Energy closed on a $20 million credit facility with AloStar Business Credit, and Wind Power Energia received a $7 million loan from Inter-American Investment Corporation
According to Mercom Capital Group notable Indian transactions included a $15.3 million corporate venture capital funding raised by Trishe Developers, a Chennai-based renewable energy infrastructure company with a focus on wind-power infrastructure development: a $141 million large-scale project funding raised by NuPower Renewables for its 150 MW wind power project in Tamil Nadu: A $281 million debt funding raised by Suzlon EnergyBSE -0.32 % in short-term loans to repay holders of its foreign convertible bonds, signing an 18 month loan facility with 11 lenders.
It also saw acquisition of National Wind, a US-based wind project developer by the Chennai-based Trishe Wind Energy, an international wind energy project developer.
Venture Capital (VC) funding in the third quarter of 2012 amounted to $57 million in six deals compared to a weak second quarter where $17 million went into three deals. Disclosed VC deals this quarter included $21.5 million raised by Mainstream Renewable Power and $15.3 million raised by Trishe Developers, both wind project developers.
Announced large-scale project funding in Q3 2012 totaled $1.1 billion in 11 deals, all going to onshore projects.
Top large-scale project funding deals announced in the third quarter included $350 million raised by Nareva Renouvelables and Kharabel FZE for its 300 MW Tarfaya Wind Project in Morocco, $165 million raised by Alto Holding for its 120 MW Karaburun Wind Farm in Turkey, and $141 million raised by NuPower Renewables for its 150 MW onshore wind farm in India. Other top deals were $86 million raised by InfraVest and wpd for its 53 MW Tongyuan Wind Project in Taiwan and the $85 million loan to Newcom for its 50 MW Salkhit Wind Farm in Mongolia.
Only one of 18 large-scale project funding investors, KfW IPEX-Bank, was involved in multiple deals in Q3 2012. KfW IPEX-Bank was also involved in multiple deals in Q2 2012.
Corporate Merger and Acquisition (M&A) activity in Q3 2012 amounted to $53 million in 11 transactions compared to $93 million in five transactions in Q2 2012. Disclosed M&A transactions this quarter were the $33.2 million acquisition of Shear Wind, a developer of wind energy properties in Canada, by Sprott Power Corp, and the $20 million acquisition of certain assets of Otter Tail Corporation's DMI Industries, a manufacturer of wind towers, by Trinity Industries.
There were four debt funding deals announced in Q3 2012 totaling $359 million. Suzlon Energy raised $281 million in short-term loans to repay holders of its foreign convertible bonds, signing an 18 month loan facility with 11 lenders. Mainstream Renewable Power secured a credit facility of $51 million from Macquarie Group. Finally, Broad Wind Energy closed on a $20 million credit facility with AloStar Business Credit, and Wind Power Energia received a $7 million loan from Inter-American Investment Corporation
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