Bengaluru: The National Council for Work Experience (NCWE) Awards 2013, which are in their tenth year of recognising and rewarding employers who provide high quality internships to students and graduates, has awarded this accolade to Infosys, according to a company statement.
The Infosys InStep programme, which commenced in 2009 and offers students a three-month placement in India, has won the Work Placement of the Year crown in the category for best large organisation (more than 250 employees) with short-term placements of up to three months. The judges praised Infosys for providing cultural diversity opportunities and commended a three-tier support system and for putting considerable consideration into engaging students over the longer term despite it being a short-term placement.
Carol McCarthy, Head of Human Resources in EMEA for Infosys said: “The Infosys InStep programme is designed to provide a forum for cultural exchange and helps bring fresh ideas into the company. As well as raising awareness of the Infosys brand among future leaders, we hope to prepare a younger generation for the global marketplace in which they will forge their careers.”
Categories in NCWE cover organisations large and small, and all sectors including charities and public sector companies.
Success in my Habit
Thursday, March 28, 2013
Vizag port to take up 3 development projects worth Rs 1,800 crore
Visakhapatnam: Three major projects, with an investment of Rs 1,800 crore, are being taken up in Visakhapatnam port and the finalisation of bids is being undertaken this week.
The bids for extension of container terminal, involving an investment of Rs 633 crore, were opened on Wednesday. The bids for mechanisation and upgradation of existing facilities at iron ore handling complex (OHC) and West Quay North (WQ-7 and 8 berths) are to be opened on Thursday.
The OHC and WQ North projects will involve an investment of Rs 845 crore and Rs 393 crore respectively according to the revised estimates. The cargo mix for WQ North berths will be for handling bulk cargoes like bauxite, gypsum, blast furnace slag, manganese and other categories of ore.
“The finalisation will be based on revenue sharing offered to us subject to approval by the committee of experts set up by Visakhapatnam Port Trust (VPT) and the board of trustees,” a senior official said. The OHC project has to get the nod from the Union Cabinet. These projects, as part of Ministry of Shipping’s decision, will be taken up under Design, Build, Finance, Operate and Transfer basis.
Sources said OHC mechanisation was initially planned by VPT on its own to increase handling of iron ore by taking loan from Japan Bank for International Cooperation (JBIC).
This was dropped due to some technical problems. However, part of the originally proposed loan may be taken from the JBIC to fund dredging.
VPT will be spending Rs 13,940 crore on the several ongoing projects to take the capacity to 149 million tonnes by 2019-20.
The bids for extension of container terminal, involving an investment of Rs 633 crore, were opened on Wednesday. The bids for mechanisation and upgradation of existing facilities at iron ore handling complex (OHC) and West Quay North (WQ-7 and 8 berths) are to be opened on Thursday.
The OHC and WQ North projects will involve an investment of Rs 845 crore and Rs 393 crore respectively according to the revised estimates. The cargo mix for WQ North berths will be for handling bulk cargoes like bauxite, gypsum, blast furnace slag, manganese and other categories of ore.
“The finalisation will be based on revenue sharing offered to us subject to approval by the committee of experts set up by Visakhapatnam Port Trust (VPT) and the board of trustees,” a senior official said. The OHC project has to get the nod from the Union Cabinet. These projects, as part of Ministry of Shipping’s decision, will be taken up under Design, Build, Finance, Operate and Transfer basis.
Sources said OHC mechanisation was initially planned by VPT on its own to increase handling of iron ore by taking loan from Japan Bank for International Cooperation (JBIC).
This was dropped due to some technical problems. However, part of the originally proposed loan may be taken from the JBIC to fund dredging.
VPT will be spending Rs 13,940 crore on the several ongoing projects to take the capacity to 149 million tonnes by 2019-20.
Abu Dhabi based Etihad Airways inks wet lease pact with Jet Airways
Mumbai: Jet Airways, India's second largest airline by market share, has leased a wide body aircraft along with 60 of its cabin crew to Abu Dhabi based Etihad Airways, a move that indicates a burgeoning partnership, even before the two airlines ink an equity stake sale.
In aviation parlance, a wet lease of an aircraft is an arrangement whereby the lessor, in this instance Jet, provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.
The cabin crew will be trained by Etihad in Mumbai over the next three months. This is the second such collaborative agreement between the two carriers who are engaged in protracted discussions for over three months for an equity partnership and a strategic alliance. Jet had earlier announced a sale and lease back of Jet's Heathrow-London slots for $70 million in February to Etihad. Confirming this, Jet CEO Nikos Kardassis said the crew was surplus with Jet as it has withdrawn flights to its European hub in Brussels originating from Chennai.
"We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis texted in response to ET's query over the issue.
Jet has a fleet of over 100 aircraft, including the 11 Airbus A330-200 type that it deploys on long haul international flights. Jet took delivery of a different series of this aircraft, the A330-300 in December last year and said it will induct another three soon to expand its Airbus wide body aircraft fleet. Jet deployed the 300 series aircraft on the Mumbai-Brussels route. The A330-300 will also replace two leased A330-200 type, the airline had said.
Aviation analysts see this move by Jet to wet lease aircraft to Etihad as the beginning of many more of such initiatives to be announced by the Naresh Goyal-promoted carrier as the deal between the two is seen as a more comprehensive strategic and collaborative alliance and not just an equity deal.
The airline has sought additional seats to Abu Dhabi for its summer schedule (some reports suggest 10,000 more seats) and according to the civil aviation minster Ajit Singh, the ministry is also considering a more comprehensive code-share request by Jet with Etihad. Some aviation analysts see the manpower supply from India to Middle Eastern countries as a crucial part of the tie-up between the Indian carrier and the fast expanding Etihad.
"The HR is critical part of this deal and we expect Etihad will increasingly depend on Jet to supply trained manpower for their expansion.
The wet leasing of the crew is the just the beginning. India provides low cost and trained manpower with ability to deliver higher productivity to the Middle East (ME) carriers and is vital component of their business model. Given the size of their (ME carriers) expansion, sourcing manpower from India/south Asia will increase significantly in the near term," said Kapil Kaul, CEO, South Asia, Centre for Asia-Pacific Aviation. He added that Jet has always very successfully managed to sub-lease their wide body aircraft as and when required. "Etihad will continue to provide strategic support to Jet," said Kaul.
In aviation parlance, a wet lease of an aircraft is an arrangement whereby the lessor, in this instance Jet, provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.
The cabin crew will be trained by Etihad in Mumbai over the next three months. This is the second such collaborative agreement between the two carriers who are engaged in protracted discussions for over three months for an equity partnership and a strategic alliance. Jet had earlier announced a sale and lease back of Jet's Heathrow-London slots for $70 million in February to Etihad. Confirming this, Jet CEO Nikos Kardassis said the crew was surplus with Jet as it has withdrawn flights to its European hub in Brussels originating from Chennai.
"We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis texted in response to ET's query over the issue.
Jet has a fleet of over 100 aircraft, including the 11 Airbus A330-200 type that it deploys on long haul international flights. Jet took delivery of a different series of this aircraft, the A330-300 in December last year and said it will induct another three soon to expand its Airbus wide body aircraft fleet. Jet deployed the 300 series aircraft on the Mumbai-Brussels route. The A330-300 will also replace two leased A330-200 type, the airline had said.
Aviation analysts see this move by Jet to wet lease aircraft to Etihad as the beginning of many more of such initiatives to be announced by the Naresh Goyal-promoted carrier as the deal between the two is seen as a more comprehensive strategic and collaborative alliance and not just an equity deal.
The airline has sought additional seats to Abu Dhabi for its summer schedule (some reports suggest 10,000 more seats) and according to the civil aviation minster Ajit Singh, the ministry is also considering a more comprehensive code-share request by Jet with Etihad. Some aviation analysts see the manpower supply from India to Middle Eastern countries as a crucial part of the tie-up between the Indian carrier and the fast expanding Etihad.
"The HR is critical part of this deal and we expect Etihad will increasingly depend on Jet to supply trained manpower for their expansion.
The wet leasing of the crew is the just the beginning. India provides low cost and trained manpower with ability to deliver higher productivity to the Middle East (ME) carriers and is vital component of their business model. Given the size of their (ME carriers) expansion, sourcing manpower from India/south Asia will increase significantly in the near term," said Kapil Kaul, CEO, South Asia, Centre for Asia-Pacific Aviation. He added that Jet has always very successfully managed to sub-lease their wide body aircraft as and when required. "Etihad will continue to provide strategic support to Jet," said Kaul.
Government Approves 6 Proposals of Foreign Direct Investment Amounting to Rs. 732.77 Crore Approximately
New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 6, 2013, the Government has approved six (6) Proposals of Foreign Direct Investment (FDI) amounting toRs.732.77 crore approximately.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 06.03.2013:
Following Six (6) proposals have been approved.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows(` In crore)
ECONOMIC AFFAIRS (CM DIVISION)
1 M/s SIDBI Social Venture Trust, Mumbai To allot Class A units of the Fund to bring foreign investment. 285.00
ROAD TRANSPORT & HIGHWAYS
2 M/s Navayuga Road Projects Pvt. Ltd., Hyderabad To act as an investing company and to make downstream investments in its Special Purpose Companies. 357.60
CIVIL AVIATION
3 M/s AirAsia Investment Ltd., Malaysia To set up a JV company to undertake the business of operation of scheduled passenger airlines. 80.98
4 M/s Farnair Switzerland A.G., Switzerland To increase FDI in an Air Transport Business Company by purchase of shares from Indian shareholder. 1.35
PHARMACEUTICALS
5 M/s AET Laboratories Pvt. Ltd., Hyderabad Induction of additional foreign equity in a pharmaceutical company. 5.34
DEFENCE PRODUCTION
6 M/s Bharat Electronics Limited, Bangalore To set up a JV company to carry out the business of Design, Development, marketing, supply and support of civilian and select defence Radars for Indian and global markets. 2.5
2. The following Seven (7) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s ICICI Venture Funds Management Company Ltd., Mumbai To bring fund from a foreign limited liability company FVCI for making investment in the units of a Trust for making investments in Portfolio companies in India.
2 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius NR to NR transfer of shares to carry out the business of (a) Broadcasting a non- news and current affairs television channel namely “StarCJ alive” Channel; (b) wholesale cash and carry trading of products; and (c) creation of home shopping content for broadcast through any and all mediums, including the channel, all within India.
3 M/s Premier Medical Corporation Limited, Mumbai Induction of foreign equity in a pharmaceutical company.
4 M/s Fullife Healthcare Pvt. Ltd., Mumbai Induction of foreign equity in a pharmaceutical company to carry out the business of in-licensing, developing, getting products manufactured from third party and out-licensing the marketing rights of unique healthcare solution in the field of food supplements, non-critical diagnostics and pharma products.
5 M/s Barefoot Resorts & Leisure India Pvt. Ltd., Chennai Post facto approval for issuance of partly paid up shares to carry out the business of leisure tourist resorts both on wholesome basis and on time share basis.
6 M/s Highdell Investment Ltd., Mauritius Induction of foreign equity in an investment holding company.
7 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune To set up a new JV company to be engaged in design, development, manufacturing of defence related products.
3. The following one (1) proposal has been rejected:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Prithvi Information Solutions Ltd., Andhra Pradesh Issue of warrants to carry out the business of end-to-end solutions in information technology, RF engineering and knowledge service apart from providing consulting and staff augmentation.
4. The following one (1) proposal has been recommended to advise the applicant to approach the Reserve Bank of India (RBI).
Sl. No Name of the applicant Particulars of the proposal
1 M/s Copper Beech Infrastructure Pvt. Ltd., New Delhi Request for deletion of compounding condition. The company is engaged in the business of setting up of Educational Infrastructure.
5. The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Chennai Post facto approval for issuance of shares in a pharmaceutical company.
6. The following one (1) proposal has been advised to access automatic route.
Sl. No Name of the applicant Particulars of the proposal
1 M/s Woory Automotives India Pvt. Ltd., Chennai An operating cum investing company to make downstream investment.
7. The following Two (2) proposals have been withdrawn from the Agenda:
Sl. No Name of the applicant
1 M/s NA Pali Europe SARL
2 Mrs. Jayalakshmi Jagannathan
8. Decision in the following six (6) proposals will be communicated separately:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Yes Bank Limited, Mumbai To increase foreign equity participation through a qualified institutional placement (QIP) of Equity shares to eligible NRs and/or issue of GDRs to FIIs.
2 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
3 M/s Indian Energy Exchange Limited, Mumbai Post facto approval for the issue of compulsory convertible preference shares and equity shares to foreign investors. The company is engaged in the business of exchange of electricity.
4 M/s Sunij Pharma Pvt. Ltd., Ahmedabd Induction of additional foreign equity in a pharmaceutical company.
5 M/s WCP Holdings III, Mauritius Acquisition of shares of an Indian stock exchange (NSE) from an existing financial institution shareholder.
6 M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 06.03.2013:
Following Six (6) proposals have been approved.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows(` In crore)
ECONOMIC AFFAIRS (CM DIVISION)
1 M/s SIDBI Social Venture Trust, Mumbai To allot Class A units of the Fund to bring foreign investment. 285.00
ROAD TRANSPORT & HIGHWAYS
2 M/s Navayuga Road Projects Pvt. Ltd., Hyderabad To act as an investing company and to make downstream investments in its Special Purpose Companies. 357.60
CIVIL AVIATION
3 M/s AirAsia Investment Ltd., Malaysia To set up a JV company to undertake the business of operation of scheduled passenger airlines. 80.98
4 M/s Farnair Switzerland A.G., Switzerland To increase FDI in an Air Transport Business Company by purchase of shares from Indian shareholder. 1.35
PHARMACEUTICALS
5 M/s AET Laboratories Pvt. Ltd., Hyderabad Induction of additional foreign equity in a pharmaceutical company. 5.34
DEFENCE PRODUCTION
6 M/s Bharat Electronics Limited, Bangalore To set up a JV company to carry out the business of Design, Development, marketing, supply and support of civilian and select defence Radars for Indian and global markets. 2.5
2. The following Seven (7) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s ICICI Venture Funds Management Company Ltd., Mumbai To bring fund from a foreign limited liability company FVCI for making investment in the units of a Trust for making investments in Portfolio companies in India.
2 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius NR to NR transfer of shares to carry out the business of (a) Broadcasting a non- news and current affairs television channel namely “StarCJ alive” Channel; (b) wholesale cash and carry trading of products; and (c) creation of home shopping content for broadcast through any and all mediums, including the channel, all within India.
3 M/s Premier Medical Corporation Limited, Mumbai Induction of foreign equity in a pharmaceutical company.
4 M/s Fullife Healthcare Pvt. Ltd., Mumbai Induction of foreign equity in a pharmaceutical company to carry out the business of in-licensing, developing, getting products manufactured from third party and out-licensing the marketing rights of unique healthcare solution in the field of food supplements, non-critical diagnostics and pharma products.
5 M/s Barefoot Resorts & Leisure India Pvt. Ltd., Chennai Post facto approval for issuance of partly paid up shares to carry out the business of leisure tourist resorts both on wholesome basis and on time share basis.
6 M/s Highdell Investment Ltd., Mauritius Induction of foreign equity in an investment holding company.
7 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune To set up a new JV company to be engaged in design, development, manufacturing of defence related products.
3. The following one (1) proposal has been rejected:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Prithvi Information Solutions Ltd., Andhra Pradesh Issue of warrants to carry out the business of end-to-end solutions in information technology, RF engineering and knowledge service apart from providing consulting and staff augmentation.
4. The following one (1) proposal has been recommended to advise the applicant to approach the Reserve Bank of India (RBI).
Sl. No Name of the applicant Particulars of the proposal
1 M/s Copper Beech Infrastructure Pvt. Ltd., New Delhi Request for deletion of compounding condition. The company is engaged in the business of setting up of Educational Infrastructure.
5. The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Chennai Post facto approval for issuance of shares in a pharmaceutical company.
6. The following one (1) proposal has been advised to access automatic route.
Sl. No Name of the applicant Particulars of the proposal
1 M/s Woory Automotives India Pvt. Ltd., Chennai An operating cum investing company to make downstream investment.
7. The following Two (2) proposals have been withdrawn from the Agenda:
Sl. No Name of the applicant
1 M/s NA Pali Europe SARL
2 Mrs. Jayalakshmi Jagannathan
8. Decision in the following six (6) proposals will be communicated separately:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Yes Bank Limited, Mumbai To increase foreign equity participation through a qualified institutional placement (QIP) of Equity shares to eligible NRs and/or issue of GDRs to FIIs.
2 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
3 M/s Indian Energy Exchange Limited, Mumbai Post facto approval for the issue of compulsory convertible preference shares and equity shares to foreign investors. The company is engaged in the business of exchange of electricity.
4 M/s Sunij Pharma Pvt. Ltd., Ahmedabd Induction of additional foreign equity in a pharmaceutical company.
5 M/s WCP Holdings III, Mauritius Acquisition of shares of an Indian stock exchange (NSE) from an existing financial institution shareholder.
6 M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.
India to be Third Largest Aviation Market by 2020
New Delhi: Speaking at a function in the capital on the occasion of Aviation Day, the Minister for Civil Aviation, Shri Ajit Singh said that, India would be the third largest aviation market by 2020. Addressing senior representatives of the aviation industry, Shri Ajit Singh informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion by 2020.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
Wednesday, March 27, 2013
Tata Power commissions fifth unit of Mundra project
Ahmedabad: With Tata Power Company Ltd completing commercial operation of the fifth and last unit of 800 MW at Mundra in Gujarat, India’s first, greenest, 4,000 MW UMPP has become fully commercial.
Tata Power, India’s largest integrated power utility, which developed the project through its wholly-owned subsidiary Coastal Gujarat Power Ltd (CGPL), announced on Monday the commissioning of the fifth unit. With this, the entire UMPP has become commercially operational, according to a statement here.
The Mundra UMPP is the first of the UMPPs in India that heralds the entry of 800 MW supercritical boiler technology in India, which is environment friendly and efficient. The total power generation capacity of Tata Power currently stands at 8,500 MW, reinforcing its position as the largest integrated power company in India.
Tata Power’s Mundra UMPP has been completed in a record time of one year from the date of commissioning of the first 800 MW unit in March 2012.
The average gap taken between synchronisation of two units has been 3.5 months which is better than the baseline schedule of four months and is much better than the five months provided in original PPA, said Anil Sardana, Managing Director.
The technology used for the 4,000-MW Mundra UMPP and the choice of unit sizes will help save fuel.
Tata Power, India’s largest integrated power utility, which developed the project through its wholly-owned subsidiary Coastal Gujarat Power Ltd (CGPL), announced on Monday the commissioning of the fifth unit. With this, the entire UMPP has become commercially operational, according to a statement here.
The Mundra UMPP is the first of the UMPPs in India that heralds the entry of 800 MW supercritical boiler technology in India, which is environment friendly and efficient. The total power generation capacity of Tata Power currently stands at 8,500 MW, reinforcing its position as the largest integrated power company in India.
Tata Power’s Mundra UMPP has been completed in a record time of one year from the date of commissioning of the first 800 MW unit in March 2012.
The average gap taken between synchronisation of two units has been 3.5 months which is better than the baseline schedule of four months and is much better than the five months provided in original PPA, said Anil Sardana, Managing Director.
The technology used for the 4,000-MW Mundra UMPP and the choice of unit sizes will help save fuel.
Agri & processed food export to set record
Mumbai: Agricultural and processed food exports from India are likely to set a record this financial year, despite unfavourable global economic sentiment.
These exports had already surpassed last year’s annual figure in the first 10 months of the current financial year, witnessing a strong demand for India’s ready-to-eat and raw food products from foreign markets. Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in the first 10 months of 2012-13, as compared to Rs 62,244 crore in the corresponding period of last year.
“Overall exports of agri and processed foods might surpass Rs 125,000 crore by the end of this financial year,” said a senior Apeda official.
Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.
Dietmar Eiden, vice-president (trade fair management) at Koelnmesse GmbH, the organiser of the world’s largest food and beverage exhibition, the Anuga International Fair, said: “An unfavourable global economic climate is unlikely to hurt consumer demand for food and agri products. That’s the reason we have got overwhelming response from Indian food and agri exporters, who have already set their foothold in European countries and want to strengthen their presence.”
The commerce ministry took initiatives to promote India’s agri and processed food products in European countries in recent years, boosting India’s significance in Anuga events. Exports of these products haven’t been hit by the unfavourable global economic sentiment. As a result, these exports has risen ten-fold in four years, from Rs 11,178 crore in 2009-10.
In Europe, Germany continues to remain a major destination for rice products, coffee, dried and preserved vegetables and poultry products. America is a major importer of India’s cereal preparations, guar gum, cocoa products, natural honey and milled products. Asian countries are also major export destinations for a number of agri products.
These exports had already surpassed last year’s annual figure in the first 10 months of the current financial year, witnessing a strong demand for India’s ready-to-eat and raw food products from foreign markets. Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in the first 10 months of 2012-13, as compared to Rs 62,244 crore in the corresponding period of last year.
“Overall exports of agri and processed foods might surpass Rs 125,000 crore by the end of this financial year,” said a senior Apeda official.
Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.
Dietmar Eiden, vice-president (trade fair management) at Koelnmesse GmbH, the organiser of the world’s largest food and beverage exhibition, the Anuga International Fair, said: “An unfavourable global economic climate is unlikely to hurt consumer demand for food and agri products. That’s the reason we have got overwhelming response from Indian food and agri exporters, who have already set their foothold in European countries and want to strengthen their presence.”
The commerce ministry took initiatives to promote India’s agri and processed food products in European countries in recent years, boosting India’s significance in Anuga events. Exports of these products haven’t been hit by the unfavourable global economic sentiment. As a result, these exports has risen ten-fold in four years, from Rs 11,178 crore in 2009-10.
In Europe, Germany continues to remain a major destination for rice products, coffee, dried and preserved vegetables and poultry products. America is a major importer of India’s cereal preparations, guar gum, cocoa products, natural honey and milled products. Asian countries are also major export destinations for a number of agri products.
CARE launches ‘fundamental grading’ of SMEs
New Delhi: Credit Analysis & Research Limited (CARE Ratings) has launched a new product called "SME fundamental grading", which, it said will aid investors in taking informed investment decisions based on the fundamentals of small and medium enterprises (SMEs). It will also assist SMEs to differentiate themselves from others, thereby facilitating the raising of funds.
With the introduction of SME platforms on the stock exchanges - BSE SME Exchange and NSE Emerge - SMEs are now able to raise equity capital by listing on these platforms. With this development, it was important to classify entities with better business fundamentals for taking a long-term investment view, the agency said. This product is expected to fill this gap, it said.
SME fundamental grading will be an independent and professional opinion on the fundamentals of a SME. It will be a relative assessment in relation to other Indian SMEs, involving an in-depth assessment of various quantitative and qualitative parameters of the entity.
Quantitative parameters include growth prospects of the industry, financial strength and operating performance of the entity. Qualitative parameters primarily include management capability, an evaluation of the promoters, accounting policies and corporate governance practices.
CARE will grade the SMEs' fundamentals on a five-point scale, from fundamental grade 5/5 (the highest grade, indicating 'strong fundamentals') to the lowest score, fundamental grade 1/5 (indicating 'weak fundamentals'). A score of 4/5 will indicate very good fundamentals; 3/5 will indicate good fundamentals, and 2/5 will indicate modest fundamentals.
The first two companies to be rated on the new scale are Ashapura Intimate Fashions Limited (AIFL) and Sarda Energy & Minerals Ltd (SEML).
With the introduction of SME platforms on the stock exchanges - BSE SME Exchange and NSE Emerge - SMEs are now able to raise equity capital by listing on these platforms. With this development, it was important to classify entities with better business fundamentals for taking a long-term investment view, the agency said. This product is expected to fill this gap, it said.
SME fundamental grading will be an independent and professional opinion on the fundamentals of a SME. It will be a relative assessment in relation to other Indian SMEs, involving an in-depth assessment of various quantitative and qualitative parameters of the entity.
Quantitative parameters include growth prospects of the industry, financial strength and operating performance of the entity. Qualitative parameters primarily include management capability, an evaluation of the promoters, accounting policies and corporate governance practices.
CARE will grade the SMEs' fundamentals on a five-point scale, from fundamental grade 5/5 (the highest grade, indicating 'strong fundamentals') to the lowest score, fundamental grade 1/5 (indicating 'weak fundamentals'). A score of 4/5 will indicate very good fundamentals; 3/5 will indicate good fundamentals, and 2/5 will indicate modest fundamentals.
The first two companies to be rated on the new scale are Ashapura Intimate Fashions Limited (AIFL) and Sarda Energy & Minerals Ltd (SEML).
Mobile value-added services market will touch $9.5 b in 2 years
New Delhi: Wipro Technologies and the Internet and Mobile Association of India (IAMAI) in a joint research report said the mobile value-added services (MVAS) market will reach $9.5 billion in 2015, from $4.9 billion in 2012.
The report — Future Thought of Business: MVAS — predicts that the Indian MVAS market will grow at a compounded annual growth rate of 25 per cent between 2012 and 2015.
It said there are opportunities for different participants in the Indian MVAS market, including domestic mobile operators, which could focus on providing better network and connectivity, and global operators that can increase their base by testing new VAS offerings in the Indian market.
Also, content and VAS technology providers can focus on developing personalised content based on consumer experience, and original equipment manufacturers that can innovate with low-cost smartphones and mobile devices to drive penetration, the report said.
Largest contributor
“India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services,” Ayan Mukerji, Senior Vice-President, Global Head - Media and Telecom, Wipro Technologies, said.
The research found that mEntertainment is the largest contributor to operators’ MVAS revenues and provides key opportunities in localised vernacular content, on-demand music and video content and live TV shows and events.
On the other hand, mEducation can play a key role in expanding the reach and quality of education in India through interactive English language learning services, competitive examination preparation solutions, tutor-on-call and vocational training.
mHealth has the potential to improve healthcare access and affordability in India, especially through remote diagnostics, chronic disease management and maternal care, it said.
Mobile phones will also play a key role in extending financial services to 40 per cent of India’s population who are unbanked.
mFinance through mobile wallet services, mobile remittance services and business correspondence model-based services will contribute to MVAS revenues, it said.
“By forging mutually agreeable partnerships, we can improve customisation and localisation of content and create services with a compelling consumer value proposition,” Subho Ray, President, IAMAI, said.
The research involved over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market.
The report — Future Thought of Business: MVAS — predicts that the Indian MVAS market will grow at a compounded annual growth rate of 25 per cent between 2012 and 2015.
It said there are opportunities for different participants in the Indian MVAS market, including domestic mobile operators, which could focus on providing better network and connectivity, and global operators that can increase their base by testing new VAS offerings in the Indian market.
Also, content and VAS technology providers can focus on developing personalised content based on consumer experience, and original equipment manufacturers that can innovate with low-cost smartphones and mobile devices to drive penetration, the report said.
Largest contributor
“India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services,” Ayan Mukerji, Senior Vice-President, Global Head - Media and Telecom, Wipro Technologies, said.
The research found that mEntertainment is the largest contributor to operators’ MVAS revenues and provides key opportunities in localised vernacular content, on-demand music and video content and live TV shows and events.
On the other hand, mEducation can play a key role in expanding the reach and quality of education in India through interactive English language learning services, competitive examination preparation solutions, tutor-on-call and vocational training.
mHealth has the potential to improve healthcare access and affordability in India, especially through remote diagnostics, chronic disease management and maternal care, it said.
Mobile phones will also play a key role in extending financial services to 40 per cent of India’s population who are unbanked.
mFinance through mobile wallet services, mobile remittance services and business correspondence model-based services will contribute to MVAS revenues, it said.
“By forging mutually agreeable partnerships, we can improve customisation and localisation of content and create services with a compelling consumer value proposition,” Subho Ray, President, IAMAI, said.
The research involved over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market.
India among top 20 global real estate investment markets: Cushman & Wakefield
Mumbai: According to Cushman & Wakefield's latest report International Investment Atlas, the global property investment market recorded a modest 6% rise in activity during 2012 with volumes reaching US$929bn (714bn).
In what was a difficult year in most markets, investment volumes rallied in Q4 signaling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14% to exceed US$1 trillion mark (815bn) for the first time since 2007.
India was (20th) among the top 20 real estate investment markets globally with investment volume of INR 190 billion (USD 3466 million) recorded in 2012. Majority of the investment in India were through institutional sales (67%) while remaining were through private equity (PE) investments (33%). The market witnessed institutional sales (excluding apartments) of INR 128 billion, concentrated in commercial development sites and office segment including stand-alone and pre-leased office buildings. However the investments in institutional sales saw a decline of 37 % over last year. On the other hand private equity investment in India increased by 7% in 2012 and was noted at INR 62.0 billion.
In terms of value, majority of the Private Equity in Real Estate (PERE) investments were noted in ready income generating / operational office assets at INR 32.3 billion saw an increase of 34% over 2011. Under construction residential projects continued to witness the highest number (25) of PERE deals in 2012 and witnessed private equity investments at INR 28.5 billion.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, "Investment in ready income generating / operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment. With increase in number of high value transactions in this sector, the market is moving towards a mature phase."
China remained the largest global investment market overall thanks to the surge in land sales seen in late 2012. Nevertheless, the US began to close the gap at 2nd position followed by the UK in 3rd place.
statement over last year , South Asia, Cushman & Wakefield, Source: Cushman & Wakefield, RCA, KTI and Property Data: Deals over US$5mn including land
In 2012, China and the USA were two key engines of the strong finish - the former benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes. However growth was far from limited to these two global heavyweights and a range of other markets in all regions saw a final quarter rally notably Spain, Poland, Norway, Switzerland, India Indonesia, Thailand, India and Australia.
India City Performance in PERE market
Bengaluru witnessed the highest number and value of private equity investments at INR 32.5 billion in 2012, recording more than double of investment over last year, followed by Mumbai with INR 13 billion and NCR with INR 7 billion of investments. However, Mumbai witnessed a marginal decline of 2% while NCR witnessed a decline of 44% in total value of investments compared to 2011.
Sanjay Dutt added, "Bangalore witnessed some high value investments in pre-leased office asset which has led it to be the top runner in the PERE market. However NCR and Mumbai continue to be preferred locations for investments due to the opportunity they offer. NCR market in 2012 saw lower number of investments, as it is an active residential sales market, which obviated the need for PE funding in many projects."
Announced PE Deals Volume - INR billion
City 2011 2012
Bengaluru 16.1 32.5
Mumbai 13.2 13
NCR 12.6 7
Others 15.9 9.6
Total 57.8 62.0Source: Cushman & Wakefield Research
Asia Pacific - investment activity to rise 15-20% in 2013
Improved macroeconomic conditions with sustainable growth across the region will boost activity and performance resulting in 15-20% increase in investment activity forecast. Investment demand will increase as faith grows in China's soft landing but demand will also broaden and other markets such as Australia and Japan will be an increasing target for overseas investors while markets such as India and Indonesia are likely to be on the rise.
In what was a difficult year in most markets, investment volumes rallied in Q4 signaling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14% to exceed US$1 trillion mark (815bn) for the first time since 2007.
India was (20th) among the top 20 real estate investment markets globally with investment volume of INR 190 billion (USD 3466 million) recorded in 2012. Majority of the investment in India were through institutional sales (67%) while remaining were through private equity (PE) investments (33%). The market witnessed institutional sales (excluding apartments) of INR 128 billion, concentrated in commercial development sites and office segment including stand-alone and pre-leased office buildings. However the investments in institutional sales saw a decline of 37 % over last year. On the other hand private equity investment in India increased by 7% in 2012 and was noted at INR 62.0 billion.
In terms of value, majority of the Private Equity in Real Estate (PERE) investments were noted in ready income generating / operational office assets at INR 32.3 billion saw an increase of 34% over 2011. Under construction residential projects continued to witness the highest number (25) of PERE deals in 2012 and witnessed private equity investments at INR 28.5 billion.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, "Investment in ready income generating / operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment. With increase in number of high value transactions in this sector, the market is moving towards a mature phase."
China remained the largest global investment market overall thanks to the surge in land sales seen in late 2012. Nevertheless, the US began to close the gap at 2nd position followed by the UK in 3rd place.
statement over last year , South Asia, Cushman & Wakefield, Source: Cushman & Wakefield, RCA, KTI and Property Data: Deals over US$5mn including land
In 2012, China and the USA were two key engines of the strong finish - the former benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes. However growth was far from limited to these two global heavyweights and a range of other markets in all regions saw a final quarter rally notably Spain, Poland, Norway, Switzerland, India Indonesia, Thailand, India and Australia.
India City Performance in PERE market
Bengaluru witnessed the highest number and value of private equity investments at INR 32.5 billion in 2012, recording more than double of investment over last year, followed by Mumbai with INR 13 billion and NCR with INR 7 billion of investments. However, Mumbai witnessed a marginal decline of 2% while NCR witnessed a decline of 44% in total value of investments compared to 2011.
Sanjay Dutt added, "Bangalore witnessed some high value investments in pre-leased office asset which has led it to be the top runner in the PERE market. However NCR and Mumbai continue to be preferred locations for investments due to the opportunity they offer. NCR market in 2012 saw lower number of investments, as it is an active residential sales market, which obviated the need for PE funding in many projects."
Announced PE Deals Volume - INR billion
City 2011 2012
Bengaluru 16.1 32.5
Mumbai 13.2 13
NCR 12.6 7
Others 15.9 9.6
Total 57.8 62.0Source: Cushman & Wakefield Research
Asia Pacific - investment activity to rise 15-20% in 2013
Improved macroeconomic conditions with sustainable growth across the region will boost activity and performance resulting in 15-20% increase in investment activity forecast. Investment demand will increase as faith grows in China's soft landing but demand will also broaden and other markets such as Australia and Japan will be an increasing target for overseas investors while markets such as India and Indonesia are likely to be on the rise.
Tuesday, March 26, 2013
Costa Coffee to add 200 stores in India by 2015
Chennai: Costa Coffee, the coffee shop chain brand under the UK-based multinational hotel, coffee shop and restaurant company Whitbread, is looking at expanding its presence in India with another 200 outlets within 2015, which would require an investment of around Rs 200 crore. The company, which claims as the world's second largest coffee chain,is planning to add around 1,000 outlets across the country by 2015-16, according to company officials.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
Cairn India to invest $2 b in Rajasthan in two years
Barmer: Cairn India, a Vedanta Group Company, on Saturday said it would invest $2 billion in the next two years to develop its Barmer block in Rajasthan.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
Government issues norms for setting up manufacturing zones
New Delhi: The government has issued norms for setting up of manufacturing zones under the national manufacturing policy, giving them many benefits, including tax sops.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
Govt eases norms to attract foreign investors
New Delhi: The government on Saturday announced simplification of removal of norms for foreign institutional investors (FIIs) to invest in government and corporate bonds, in its latest attempt to woo overseas investors to finance the widening current account deficit.
The move, which will be applicable from April 1, was among the major demands made by FIIs during their recent interaction with finance minister P Chidambaram and his team. From next month, the government, Sebi and the Reserve Bank of India (RBI) have decided to remove sub-limits for FIIs within the overall cap for bonds.
From now on, there will only be two ceilings — a $25-billion limit for investment in government securities that has been formed by merging g-secs (old) and g-secs (long term). In addition, there will be a $51-billion sub-limit for corporate bonds that will include the existing one for FIIs ($25 billion), qualified foreign investors ($1 billion) and $25 billion for FIIs in long term infrastructure bonds.
Chidambaram told the National Editors' Conference here that Sebi's current mechanism for allocating debt limits for corporate bonds will be replaced by the 'on tap system' that is used for infrastructure bonds. To make the regime more predictable, the government said that the corporate bond ceiling when 80% of the limit was exhausted.
In case of g-secs, however, the government appeared more cautious and decided to limit the annual enhancement within 5% of Centre's gross borrowings during a fiscal. The government has budgeted for borrowings of Rs 5.79 lakh crore, which means that the government can at best enhance the ceiling for the current fiscal by around $5 billion.
"The current account deficit (CAD) can be financed only through foreign inflows and that is why I am happy to announce a major rationalization of foreign investment in government securities and corporate bonds," the minister said. FII flows and foreign direct investment are crucial for India to fund its current account deficit that is expected to hit 4.5% of GDP during the current financial year. Large inflows would check against a steep depreciation of the rupee and ensure that there are sufficient foreign exchange reserves to cover for imports.
The move, which will be applicable from April 1, was among the major demands made by FIIs during their recent interaction with finance minister P Chidambaram and his team. From next month, the government, Sebi and the Reserve Bank of India (RBI) have decided to remove sub-limits for FIIs within the overall cap for bonds.
From now on, there will only be two ceilings — a $25-billion limit for investment in government securities that has been formed by merging g-secs (old) and g-secs (long term). In addition, there will be a $51-billion sub-limit for corporate bonds that will include the existing one for FIIs ($25 billion), qualified foreign investors ($1 billion) and $25 billion for FIIs in long term infrastructure bonds.
Chidambaram told the National Editors' Conference here that Sebi's current mechanism for allocating debt limits for corporate bonds will be replaced by the 'on tap system' that is used for infrastructure bonds. To make the regime more predictable, the government said that the corporate bond ceiling when 80% of the limit was exhausted.
In case of g-secs, however, the government appeared more cautious and decided to limit the annual enhancement within 5% of Centre's gross borrowings during a fiscal. The government has budgeted for borrowings of Rs 5.79 lakh crore, which means that the government can at best enhance the ceiling for the current fiscal by around $5 billion.
"The current account deficit (CAD) can be financed only through foreign inflows and that is why I am happy to announce a major rationalization of foreign investment in government securities and corporate bonds," the minister said. FII flows and foreign direct investment are crucial for India to fund its current account deficit that is expected to hit 4.5% of GDP during the current financial year. Large inflows would check against a steep depreciation of the rupee and ensure that there are sufficient foreign exchange reserves to cover for imports.
Government approves 12 proposals of foreign direct investment amounting to Rs 2609.27 crore approximately
New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on February 13, 2013, the Government has approved 12 Proposals of Foreign Direct Investment amounting to Rs.2609.27 crore approximately.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 13.02.2013 are as follows:
1. Following twelve (12) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (` in crore)
COMMERCE
1 M/s Promod S.A.S France Induction of foreign equity in the equity share capital of an Indian JV company proposed to be engaged in single brand retail trading. 29.69
2 M/s Le Creuset India Trading Pvt. Ltd. WOS of a foreign company to undertake the business of single brand retail trading. No fresh inflow
3 M/s Fossil India Pvt. Ltd. WOS of a foreign company to undertake the business of single brand retail trading. 22.53
4 M/s Decathlon Sports India Pvt. Ltd. Induction of foreign equity in the equity share capital of its WOS to undertake the business of single brand retail trading. 700.00
PHARMACEUTICALS
5 M/s Claris Otsuka Limited, Ahmedabad An existing Indian pharma company is hiving off its Infusions Business in to a new JV with FDI. 1050.00
INDUSTRIAL POLICY & PROMOTION
6 M/s Menarini Raunaq Pharma Ltd. Induction of foreign equity in an existing pharma sector company by its existing foreign promoter. 2.00
7 M/s Al Shukur Company for Engineering & Construction Ltd. Induction of further foreign capital contribution in an LLP engaged in engineering services. 0.90
ELECTRONICS & INFORMATION TECHNOLOGY
8 M/s Yalamanchili Software Export Ltd., Chennai Conversion of non-repatriable equity held by majority shareholder to repatriable equity and share swap of this holding to shares of a foreign company. Nil
FINANCIAL SERVICES
9 M/s Aon Holdings B.V., Netherlands Post facto approval for induction of foreign equity to carry out the business of Insurance broking, and risk advisory services. 0.65 (already brought)
COMMERCE
10 M/s ToCheungLee Stationery Mfg. Co. Pvt. Ltd., Delhi A foreign owned company engaging in manufacturing metal components for stationery item is collaborating with another company to set up an LLP to be engaged in the same business. 3.5
INDUSTRIAL POLICY & PROMOTION
11 M/s Glynwed Pipe Systems India Private Limited, Mumbai Foreign Owned Indian company to receive foreign investment for making downstream investments. 800.00
ECONOMIC AFFARIS (CM DIVISION)
12 M/s Gagil FDI Limited, Cyprus Transfer of shares of an Indian stock exchange from its present foreign holder, which is an FII, to another foreign company which is wholly owned subsidiary of the present foreign holder and which will be an FDI holding. No fresh inflow
2. The following nine (9) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s GeoPost S.A. France Acquisition of shares of an Indian company engaged in the business of commercial express and parcel delivery business segment.
2 Md. Rabiul Alam, Bangladesh To set up a new company in India with 100 percent FDI to carry out the business of production of engineering products.
3 M/s Sunil Hitech Engineers Limited, Nagpur To issue warrants to FIIs to carry out the business of execution of projects in the power and infrastructure sector.
4 M/s Vijay Television Pvt. Ltd. The existing domestic shareholding in the non-news channel business is being acquired by the foreign promoters.
5 M/s Sutures (I) Pvt. Ltd. Induction of foreign equity in an existing pharma sector company.
6 M/s DPD Continental Ltd. Increase in foreign equity participation from 60% to 100% to carry out the business of Courier services other than post.
7 M/s Selex Galileo Ltd., England To set up a JV to undertake the business of marketing, development, final assembly and test, system integration, in country support and other services to those products, primarily in defence electronics sector.
8 M/s Alliance Insurance Brokers Private Limited, Mumbai Induction of foreign equity by way of issue and transfer of equity shares to carry out the business of insurance broking.
9 M/s Shaastra Securities Trading Pvt. Ltd., Gurgaon To make downstream investment in the proposed Wholly Owned Subsidiary to undertake the activity of Commodity broking & trading in the commodity exchanges.
3. The following one (1) proposal has been rejected:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Erica Healthcare Pvt. Ltd., Mumbai Increase in foreign equity engaged in the pharmaceutical sector.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 13.02.2013 are as follows:
1. Following twelve (12) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (` in crore)
COMMERCE
1 M/s Promod S.A.S France Induction of foreign equity in the equity share capital of an Indian JV company proposed to be engaged in single brand retail trading. 29.69
2 M/s Le Creuset India Trading Pvt. Ltd. WOS of a foreign company to undertake the business of single brand retail trading. No fresh inflow
3 M/s Fossil India Pvt. Ltd. WOS of a foreign company to undertake the business of single brand retail trading. 22.53
4 M/s Decathlon Sports India Pvt. Ltd. Induction of foreign equity in the equity share capital of its WOS to undertake the business of single brand retail trading. 700.00
PHARMACEUTICALS
5 M/s Claris Otsuka Limited, Ahmedabad An existing Indian pharma company is hiving off its Infusions Business in to a new JV with FDI. 1050.00
INDUSTRIAL POLICY & PROMOTION
6 M/s Menarini Raunaq Pharma Ltd. Induction of foreign equity in an existing pharma sector company by its existing foreign promoter. 2.00
7 M/s Al Shukur Company for Engineering & Construction Ltd. Induction of further foreign capital contribution in an LLP engaged in engineering services. 0.90
ELECTRONICS & INFORMATION TECHNOLOGY
8 M/s Yalamanchili Software Export Ltd., Chennai Conversion of non-repatriable equity held by majority shareholder to repatriable equity and share swap of this holding to shares of a foreign company. Nil
FINANCIAL SERVICES
9 M/s Aon Holdings B.V., Netherlands Post facto approval for induction of foreign equity to carry out the business of Insurance broking, and risk advisory services. 0.65 (already brought)
COMMERCE
10 M/s ToCheungLee Stationery Mfg. Co. Pvt. Ltd., Delhi A foreign owned company engaging in manufacturing metal components for stationery item is collaborating with another company to set up an LLP to be engaged in the same business. 3.5
INDUSTRIAL POLICY & PROMOTION
11 M/s Glynwed Pipe Systems India Private Limited, Mumbai Foreign Owned Indian company to receive foreign investment for making downstream investments. 800.00
ECONOMIC AFFARIS (CM DIVISION)
12 M/s Gagil FDI Limited, Cyprus Transfer of shares of an Indian stock exchange from its present foreign holder, which is an FII, to another foreign company which is wholly owned subsidiary of the present foreign holder and which will be an FDI holding. No fresh inflow
2. The following nine (9) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s GeoPost S.A. France Acquisition of shares of an Indian company engaged in the business of commercial express and parcel delivery business segment.
2 Md. Rabiul Alam, Bangladesh To set up a new company in India with 100 percent FDI to carry out the business of production of engineering products.
3 M/s Sunil Hitech Engineers Limited, Nagpur To issue warrants to FIIs to carry out the business of execution of projects in the power and infrastructure sector.
4 M/s Vijay Television Pvt. Ltd. The existing domestic shareholding in the non-news channel business is being acquired by the foreign promoters.
5 M/s Sutures (I) Pvt. Ltd. Induction of foreign equity in an existing pharma sector company.
6 M/s DPD Continental Ltd. Increase in foreign equity participation from 60% to 100% to carry out the business of Courier services other than post.
7 M/s Selex Galileo Ltd., England To set up a JV to undertake the business of marketing, development, final assembly and test, system integration, in country support and other services to those products, primarily in defence electronics sector.
8 M/s Alliance Insurance Brokers Private Limited, Mumbai Induction of foreign equity by way of issue and transfer of equity shares to carry out the business of insurance broking.
9 M/s Shaastra Securities Trading Pvt. Ltd., Gurgaon To make downstream investment in the proposed Wholly Owned Subsidiary to undertake the activity of Commodity broking & trading in the commodity exchanges.
3. The following one (1) proposal has been rejected:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Erica Healthcare Pvt. Ltd., Mumbai Increase in foreign equity engaged in the pharmaceutical sector.
Friday, March 22, 2013
Mumbai among world’s 10 most pocket-friendly tourist destinations
New Delhi: Mumbai is among the 10 most affordable destinations, according to a cost comparison study on common incidental items and services that travellers purchase while staying at a hotel. The study was done by travel review Web site TripAdvisor.
The study, which covered four-star hotels in 46 destinations, found Africa as the most pocket-friendly for Indian travellers.
TripAdvisor’s TripIndex Room Service tracked against the rupee the combined cost of a club sandwich ordered on room service, a bottle of water, peanuts from mini bar, a mini bottle of vodka, a can of coke from the mini bar, and the dry cleaning of one shirt.
Nikhil Ganju, Country Manager, TripAdvisor (India), said, “While we bear in mind the cost of a room night when planning our travel, we often forget to account for incidentals such as in-room dining and laundry. Mumbai has emerged as the third-most affordable destination on the TripIndex Room Service. As the focus on in-bound tourism grows, this works in our favour since affordability has been an important factor in drawing leisure travellers to India.”
Ordering a club sandwich in Zurich can cost you as much as Rs 1,551.69 while in Sofia (Bulgaria) about Rs 294. A bottle of water can cost you Rs 435.15 in Oslo while Hong Kong and Kuala Lumpur offer free bottled water at the hotels. Peanuts from mini bar in Moscow could burn a hole in your pocket of about Rs 662.56 while you can get it for just about Rs 85.21 in Puerto Vallarta (Mexico). A can of coke from the hotel mini-bar will cost you a bomb in Oslo at Rs 421.61, while it is available nearly four times cheaper in Cape Town (Africa). A mini-bottle of vodka will cost you a little less than Rs 1,000 in Stockholm, while it is the cheapest at Rs 165.15 in Cape Town.
Just based on the price of the incidental costs, African cities such as Cape Town, Sharm el-Sheikh in Egypt and Marrakech (Morocco) emerged as the most affordable destination for Indian travellers.
In Asia, Jakarata and Taiwan are among the least expensive for Indian travellers. Meanwhile, European cities such as Paris, Stockholm, Oslo, Zurich and Helsinki emerged as the key expensive cities, while Istanbul, Budapest and Sofia (Bulgaria) emerged as relatively more affordable.
The study, which covered four-star hotels in 46 destinations, found Africa as the most pocket-friendly for Indian travellers.
TripAdvisor’s TripIndex Room Service tracked against the rupee the combined cost of a club sandwich ordered on room service, a bottle of water, peanuts from mini bar, a mini bottle of vodka, a can of coke from the mini bar, and the dry cleaning of one shirt.
Nikhil Ganju, Country Manager, TripAdvisor (India), said, “While we bear in mind the cost of a room night when planning our travel, we often forget to account for incidentals such as in-room dining and laundry. Mumbai has emerged as the third-most affordable destination on the TripIndex Room Service. As the focus on in-bound tourism grows, this works in our favour since affordability has been an important factor in drawing leisure travellers to India.”
Ordering a club sandwich in Zurich can cost you as much as Rs 1,551.69 while in Sofia (Bulgaria) about Rs 294. A bottle of water can cost you Rs 435.15 in Oslo while Hong Kong and Kuala Lumpur offer free bottled water at the hotels. Peanuts from mini bar in Moscow could burn a hole in your pocket of about Rs 662.56 while you can get it for just about Rs 85.21 in Puerto Vallarta (Mexico). A can of coke from the hotel mini-bar will cost you a bomb in Oslo at Rs 421.61, while it is available nearly four times cheaper in Cape Town (Africa). A mini-bottle of vodka will cost you a little less than Rs 1,000 in Stockholm, while it is the cheapest at Rs 165.15 in Cape Town.
Just based on the price of the incidental costs, African cities such as Cape Town, Sharm el-Sheikh in Egypt and Marrakech (Morocco) emerged as the most affordable destination for Indian travellers.
In Asia, Jakarata and Taiwan are among the least expensive for Indian travellers. Meanwhile, European cities such as Paris, Stockholm, Oslo, Zurich and Helsinki emerged as the key expensive cities, while Istanbul, Budapest and Sofia (Bulgaria) emerged as relatively more affordable.
Amway to foray into consumer durables business in India
Kolkata: In what it sees as a natural progression to growth in India, US-based Amway Corp, one of the world's largest direct selling companies, is planning to enter the consumer durables business by rolling out cookware, water purifiers and air purifiers, global president Douglas L. DeVos said.
The durables business of Amway globally contributes around 20% of its turnover, with brands like Amway Queen for cookware, Atmosphere for air purifiers and eSpring range of water purifiers. The largest sales contributor is the nutrition business led by the Nutrilite brand that accounts for 45% of revenue.
"The durable business is complicated since it requires capable manufacturing and service back-up. But it will be a natural progression for us to grow Amway in India," said DeVos, the youngest son of co-founder Rich DeVos.
The company's plans to enter the Rs 4,000 crore water purifier space is going to stir up excitement in a category that has seen recent expansion by leading companies such as Unilever, Tata Group, LG and Panasonic. Amway would even consider acquiring brands in the cookware or water purifier segment if it saw a strategic fit, DeVos said.
"India is currently the seventh largest market for Amway. It can potentially become the second largest after China due to sheer size of the population and with rapid expansion into newer categories driving the growth," said DeVos.
At present, India contributes 7% to Amway's global revenue. It is the 11th largest FMCG company in the country with revenue of Rs 2,288 crore in 2012. Its top brands include Nutrilite Protein, Nutrilite Daily and Glister and SA8.
DeVos makes an annual India visit. This year, he first flew into Chennai to oversee Amway's first proposed FMCG plant in the country built and then came to Kolkata on Tuesday evening. "The Chennai plant will primarily cater to the Indian market but we expect it will eventually become a global sourcing hub," said DeVos.
Amway wants to use India to expand into the SAARC region and enter markets like Pakistan, Bangladesh and Sri Lanka. "Hence, we want to rapidly expand the Indian operations so that it can become the hub," he said.
Amway is the largest direct selling company in the country and has been championing the cause of regulation. "We are presenting laws on direct selling in the US, Malaysia and Singapore to the Indian government. A regulation for the industry will help in legitimate growth and will remove the misconception with which our competitors misrepresent us," says DeVos.
The durables business of Amway globally contributes around 20% of its turnover, with brands like Amway Queen for cookware, Atmosphere for air purifiers and eSpring range of water purifiers. The largest sales contributor is the nutrition business led by the Nutrilite brand that accounts for 45% of revenue.
"The durable business is complicated since it requires capable manufacturing and service back-up. But it will be a natural progression for us to grow Amway in India," said DeVos, the youngest son of co-founder Rich DeVos.
The company's plans to enter the Rs 4,000 crore water purifier space is going to stir up excitement in a category that has seen recent expansion by leading companies such as Unilever, Tata Group, LG and Panasonic. Amway would even consider acquiring brands in the cookware or water purifier segment if it saw a strategic fit, DeVos said.
"India is currently the seventh largest market for Amway. It can potentially become the second largest after China due to sheer size of the population and with rapid expansion into newer categories driving the growth," said DeVos.
At present, India contributes 7% to Amway's global revenue. It is the 11th largest FMCG company in the country with revenue of Rs 2,288 crore in 2012. Its top brands include Nutrilite Protein, Nutrilite Daily and Glister and SA8.
DeVos makes an annual India visit. This year, he first flew into Chennai to oversee Amway's first proposed FMCG plant in the country built and then came to Kolkata on Tuesday evening. "The Chennai plant will primarily cater to the Indian market but we expect it will eventually become a global sourcing hub," said DeVos.
Amway wants to use India to expand into the SAARC region and enter markets like Pakistan, Bangladesh and Sri Lanka. "Hence, we want to rapidly expand the Indian operations so that it can become the hub," he said.
Amway is the largest direct selling company in the country and has been championing the cause of regulation. "We are presenting laws on direct selling in the US, Malaysia and Singapore to the Indian government. A regulation for the industry will help in legitimate growth and will remove the misconception with which our competitors misrepresent us," says DeVos.
Groupon opens R&D centre in Chennai
Chennai: Groupon’s R&D centre in Chennai builds tools and software for customer service, supply chain management and managing deals offered by merchants.
Started six months ago, the 25,000 sq ft facility, at an IT park in Chennai, employs 200 people. This is the company’s fifth R&D centre worldwide, after Chicago, Palo Alto, Santiago and Berlin, and was inaugurated formally today.
Groupon is an online commerce site that promotes deals and discounts from small merchants. Globally, the company has over 200 million subscribers. In India, Groupon has sold five lakh vouchers; 15,000 merchants are registered on the site.
Global online retailers eBay and Amazon also have development centres in Chennai.
Started six months ago, the 25,000 sq ft facility, at an IT park in Chennai, employs 200 people. This is the company’s fifth R&D centre worldwide, after Chicago, Palo Alto, Santiago and Berlin, and was inaugurated formally today.
Groupon is an online commerce site that promotes deals and discounts from small merchants. Globally, the company has over 200 million subscribers. In India, Groupon has sold five lakh vouchers; 15,000 merchants are registered on the site.
Global online retailers eBay and Amazon also have development centres in Chennai.
Software exports to LatAm nations to double in 2 years
Kolkata: India’s computer software and services export to Latin American countries would double in the next two years, D.K. Sareen, Executive Director, Electronics and Computer Software Export Promotion Council (ESC), said on Thursday.
In 2011-12, the export value stood at $563 million (approximately Rs 2,700 crore).
According to Sareen, the small-scale software and ITeS firms in India are looking forward to a substantial spending on information technology for developing the infrastructure for the upcoming Football World Cup and Olympics in Brazil.
“We have a lot of opportunities coming up in the Latin American countries. And, India has the potential to double its exports to these countries over the next two years,” Sareen told reporters here after inaugurating the 13th edition of IndiaSoft 2013 — an international IT exhibition and conference.
In 2011-12, the export value stood at $563 million (approximately Rs 2,700 crore).
According to Sareen, the small-scale software and ITeS firms in India are looking forward to a substantial spending on information technology for developing the infrastructure for the upcoming Football World Cup and Olympics in Brazil.
“We have a lot of opportunities coming up in the Latin American countries. And, India has the potential to double its exports to these countries over the next two years,” Sareen told reporters here after inaugurating the 13th edition of IndiaSoft 2013 — an international IT exhibition and conference.
Switzerland keen to strike ventures with Indian firms
Visakhapatnam: Visakhapatnam as a fast-developing city can look to Switzerland and the local companies can form joint ventures with Swiss companies in many sectors to mutual advantage, Bangalore-based Consulate-General of Switzerland Rolf Frei said.
He was interacting with the local industrialists and investors at a session organised here by the Vizagapatam Chamber of Commerce and Industry.
On his maiden visit to the city, he said he was very impressed with the facilities and the beauty of the city. “The way I am being received is quite amazing. The city and its people are very warm and beautiful,” he added.
Frei said the Switzerland Government was looking at strengthening the bilateral ties in trade and commerce.
The Consulate office was opened in Bangalore two years ago recognising the investment potential in and from South India.
Frei said they were looking at investment opportunities in tourism, infrastructure, information and communication technology, retail, life sciences, clean technologies, research and development and education.
“Many from South India are investing in Switzerland because it’s the gateway to the Europe and has excellent infrastructure and tax incentives,” he stated.
Biotech and IT offices have been opened with an investment of $1 billion by Indians in Switzerland. The Swiss investment in India is of the order of $4 billion.
Thirty Indian companies with interest in Europe have so far opened their offices in Switzerland.
“We have stable political environment, skilled manpower and excellent infrastructure. Low taxes are the main attraction,” he said.
Chamber president K. Ramabrahmam, Symbiosys CEO O. Naresh Kumar and others spoke on the advantages of investing in Visakhapatnam and urged the Consul-General to bring in a delegation of Swiss industrialists and others the next time with him to showcase Vizag.
He was interacting with the local industrialists and investors at a session organised here by the Vizagapatam Chamber of Commerce and Industry.
On his maiden visit to the city, he said he was very impressed with the facilities and the beauty of the city. “The way I am being received is quite amazing. The city and its people are very warm and beautiful,” he added.
Frei said the Switzerland Government was looking at strengthening the bilateral ties in trade and commerce.
The Consulate office was opened in Bangalore two years ago recognising the investment potential in and from South India.
Frei said they were looking at investment opportunities in tourism, infrastructure, information and communication technology, retail, life sciences, clean technologies, research and development and education.
“Many from South India are investing in Switzerland because it’s the gateway to the Europe and has excellent infrastructure and tax incentives,” he stated.
Biotech and IT offices have been opened with an investment of $1 billion by Indians in Switzerland. The Swiss investment in India is of the order of $4 billion.
Thirty Indian companies with interest in Europe have so far opened their offices in Switzerland.
“We have stable political environment, skilled manpower and excellent infrastructure. Low taxes are the main attraction,” he said.
Chamber president K. Ramabrahmam, Symbiosys CEO O. Naresh Kumar and others spoke on the advantages of investing in Visakhapatnam and urged the Consul-General to bring in a delegation of Swiss industrialists and others the next time with him to showcase Vizag.
Nasscom launches programme to incubate 10,000 start-ups
Bangalore: To give a boost to the entrepreneurial ecosystem in the country, Nasscom has announced the launch of ‘10,000 start-ups’ programme.
This programme aims to incubate, fund and mentor start-ups in the next 10 years.
While Nasscom has been running such entrepreneurial activities in the past, this time it has sought to involve all the stakeholders – from venture capitalists to product companies that can help foster the start-up ecosystem. They will be provided with tools consisting of hosting credits and other technology and business tools valued at $25000.
As a part of this, Nasscom has partnered by Indian Angel Network, Google, Microsoft and Verisign.
Further, the industry body has ambitious plans of creating $15 billion firms in the next 10 years, which eventually would be a part of the $300-billion Indian IT industry.
Som Mittal, President, Nasscom, said this will create a significant national impact on employment, GDP, innovation, entrepreneurship and will be vital to realise the industry vision.
Tech events
“Start-ups need handholding in the initial stages in areas like monetising of business, especially in technology and mentorship helps,” said M.K. Sridhar, Member-Secretary and executive director, Karnataka Knowledge Commission.
In line with this, the programme will facilitate 7,000 start-up-related events such as hackathons, investor roadshows and best practices workshops across 30 cities. Tech talks and white space discussions will help young entrepreneurs identify global technology trends and needs, according to Mittal.
While these are noteworthy objectives, some start-ups still are sceptical and concerned that this does not turn into a lobby for start-ups affiliating with the key technology partners.
“We are concerned that we might get sidelined if we are not working in areas that Microsoft and Google have interests,” said an educational start-up which works on open source technologies.
Further, Nasscom plans to create awareness about technology entrepreneurship as a career option. India has 3 million professionals working in the IT sector.
This programme aims to incubate, fund and mentor start-ups in the next 10 years.
While Nasscom has been running such entrepreneurial activities in the past, this time it has sought to involve all the stakeholders – from venture capitalists to product companies that can help foster the start-up ecosystem. They will be provided with tools consisting of hosting credits and other technology and business tools valued at $25000.
As a part of this, Nasscom has partnered by Indian Angel Network, Google, Microsoft and Verisign.
Further, the industry body has ambitious plans of creating $15 billion firms in the next 10 years, which eventually would be a part of the $300-billion Indian IT industry.
Som Mittal, President, Nasscom, said this will create a significant national impact on employment, GDP, innovation, entrepreneurship and will be vital to realise the industry vision.
Tech events
“Start-ups need handholding in the initial stages in areas like monetising of business, especially in technology and mentorship helps,” said M.K. Sridhar, Member-Secretary and executive director, Karnataka Knowledge Commission.
In line with this, the programme will facilitate 7,000 start-up-related events such as hackathons, investor roadshows and best practices workshops across 30 cities. Tech talks and white space discussions will help young entrepreneurs identify global technology trends and needs, according to Mittal.
While these are noteworthy objectives, some start-ups still are sceptical and concerned that this does not turn into a lobby for start-ups affiliating with the key technology partners.
“We are concerned that we might get sidelined if we are not working in areas that Microsoft and Google have interests,” said an educational start-up which works on open source technologies.
Further, Nasscom plans to create awareness about technology entrepreneurship as a career option. India has 3 million professionals working in the IT sector.
Luxury market to reach $15 bn by 2015 in India, marketers try new ways to woo buyers in non-metros
New Delhi: If you were to name the country's most fashionable cities, Indore is unlikely to make the list. But luxury handbag brand Judith Leiber, which sells just about 300 of its pricey bags in the whole of India in a year, recently sold 30 pieces priced anywhere from 25,000 to over 3 lakh in this central Indian city through a special sale event held in partnership with an existing client.
"It was a unique experience for the people of Indore, which worked well for the brand," says HarshvardhanBhatia, founder of HI Diamonds, who partnered the trunk show. Buoyed, the American brand will return to the city next month with a similar event with the same partner.
Judith Leiber is part of a growing club of luxury goods and service providers that finds innovative ways to reach small towns and cities where there is no luxury infrastructure but people have as much money and taste for luxury as those in the metros.
If Judith Leiber uses local influence groups to cosy up to buyers in the hinterland, BMW dealer Bird Automotive interacts with school and college students to popularise the German luxury car brand in cities such as Agra, Meerut, Karnal and Faridabad, where demand for luxury cars is on the rise. "We organise brand connect programmes for students with an aim to motivate them to become a customer at a later stage. It is a long-term approach," says Gaurav Bhatia, director at Bird Automotive.
Bird Automotive sells BMW luxury cars in Delhi and the NCR region. "Educating the consumer is the key to success in these (hinterland) markets," he says, adding that his firm sells up to 70 cars in a year in smaller cities around the Capital. India's luxury market is expected to reach $14.73 billion by 2015 from an estimated $8.21 billion this year, with about 30% of the customers coming from smaller cities.
According to a recent survey by YES Bank, new pockets of regional growth have led to a rise in the number of first-time luxury consumers from smaller cities and towns. This made 36% of the 300 responding CEOs of luxury brands see themselves increasingly using social media platforms as a brand connect and 38% saying they were trying to reach out to these markets through e-commerce.
So the potential is big. And so is the challenge of wooing these new luxury lovers.
Abraham Koshy, professor of marketing at IIM-Ahmedabad, says small-town consumers need to be treated differently. "There is no point explaining what it means to buy a Louis Vuitton bag to a well-heeled shopper in Delhi or Mumbai. But in smaller locations, it is important to stimulate demand by informing a consumer about the badge value of an expensive brand and how it adds to the image," he says. To communicate well, brands need to talk consumers' language.
Rajeev Wadhwa, chairman of Mumbai-based luxury charter services provider Baron Aviation, says that recently a client had called in at two in the night with a demand to fly out to London in a private charter the next morning. "We knew it was not possible and it took one hour for the relationship manager to finally make him understand how numerous permissions were required to be taken," he says.
"It was a unique experience for the people of Indore, which worked well for the brand," says HarshvardhanBhatia, founder of HI Diamonds, who partnered the trunk show. Buoyed, the American brand will return to the city next month with a similar event with the same partner.
Judith Leiber is part of a growing club of luxury goods and service providers that finds innovative ways to reach small towns and cities where there is no luxury infrastructure but people have as much money and taste for luxury as those in the metros.
If Judith Leiber uses local influence groups to cosy up to buyers in the hinterland, BMW dealer Bird Automotive interacts with school and college students to popularise the German luxury car brand in cities such as Agra, Meerut, Karnal and Faridabad, where demand for luxury cars is on the rise. "We organise brand connect programmes for students with an aim to motivate them to become a customer at a later stage. It is a long-term approach," says Gaurav Bhatia, director at Bird Automotive.
Bird Automotive sells BMW luxury cars in Delhi and the NCR region. "Educating the consumer is the key to success in these (hinterland) markets," he says, adding that his firm sells up to 70 cars in a year in smaller cities around the Capital. India's luxury market is expected to reach $14.73 billion by 2015 from an estimated $8.21 billion this year, with about 30% of the customers coming from smaller cities.
According to a recent survey by YES Bank, new pockets of regional growth have led to a rise in the number of first-time luxury consumers from smaller cities and towns. This made 36% of the 300 responding CEOs of luxury brands see themselves increasingly using social media platforms as a brand connect and 38% saying they were trying to reach out to these markets through e-commerce.
So the potential is big. And so is the challenge of wooing these new luxury lovers.
Abraham Koshy, professor of marketing at IIM-Ahmedabad, says small-town consumers need to be treated differently. "There is no point explaining what it means to buy a Louis Vuitton bag to a well-heeled shopper in Delhi or Mumbai. But in smaller locations, it is important to stimulate demand by informing a consumer about the badge value of an expensive brand and how it adds to the image," he says. To communicate well, brands need to talk consumers' language.
Rajeev Wadhwa, chairman of Mumbai-based luxury charter services provider Baron Aviation, says that recently a client had called in at two in the night with a demand to fly out to London in a private charter the next morning. "We knew it was not possible and it took one hour for the relationship manager to finally make him understand how numerous permissions were required to be taken," he says.
SIDBI signs tripartite MoU with Egyptian body, World Bank
New Dehi: Small Industries Development Bank of India (SIDBI) has signed a tripartite Memorandum of Understanding (MOU) with Social Fund for Development (SFD) Egypt and the World Bank.
The MOU was signed in the presence of visiting Egyptian President Mohamed Morsi and Commerce and Industry Minister Anand Sharma here today.
Under the MOU, SIDBI and its associates will provide consultancy for three year period to SFD and establish credit guarantee system for micro, small and medium enterprises in Egypt, Sushil Muhnot, Chairman & Managing Director, SIDBI told Businessline.
SIDBI will also help SFD in cluster development, introduction of venture capital and risk capital products in Egypt besides developing responsible micro-finance in that country, Muhnot said.
World Bank is carrying out a SME development project in Egypt and will fund the technical assistance/consultancy to be provided by SIDBI, it is learnt.
The MOU was signed in the presence of visiting Egyptian President Mohamed Morsi and Commerce and Industry Minister Anand Sharma here today.
Under the MOU, SIDBI and its associates will provide consultancy for three year period to SFD and establish credit guarantee system for micro, small and medium enterprises in Egypt, Sushil Muhnot, Chairman & Managing Director, SIDBI told Businessline.
SIDBI will also help SFD in cluster development, introduction of venture capital and risk capital products in Egypt besides developing responsible micro-finance in that country, Muhnot said.
World Bank is carrying out a SME development project in Egypt and will fund the technical assistance/consultancy to be provided by SIDBI, it is learnt.
Sebi allows FIIs to offer G-secs, corporate bonds as collateral
Mumbai: Following last month’s Budget announcement, market regulator Sebi today allowed foreign institutional investors (FIIs) to offer government securities and corporate bonds as collateral for their transactions in both cash and futures and options (F&O) segments.
Sebi has said such bonds will need a minimum rating of AA by recognised credit rating agencies. Also, these bonds will have to be in dematerialised form. The regulator has directed clearing corporations to have an enabling framework for acceptance of such bonds as collateral.
“The bonds shall be treated as part of the non-cash component of the liquid assets of the clearing member and shall not exceed 10 per cent of the total liquid assets of the clearing member,” Sebi said in a circular.
“The bonds shall have a fixed percentage based or VaR (value at risk) based haircut. A higher haircut may be considered to cover the expected time frame for liquidation. To begin with, the haircut shall be a minimum of 10 per cent,” it added.
Earlier, FIIs were allowed to offer cash and foreign sovereign securities with AAA rating as collateral in the F&O segment, while cash, foreign sovereign securities with AAA rating and government securities were allowed in the cash segment.
Sebi has said such bonds will need a minimum rating of AA by recognised credit rating agencies. Also, these bonds will have to be in dematerialised form. The regulator has directed clearing corporations to have an enabling framework for acceptance of such bonds as collateral.
“The bonds shall be treated as part of the non-cash component of the liquid assets of the clearing member and shall not exceed 10 per cent of the total liquid assets of the clearing member,” Sebi said in a circular.
“The bonds shall have a fixed percentage based or VaR (value at risk) based haircut. A higher haircut may be considered to cover the expected time frame for liquidation. To begin with, the haircut shall be a minimum of 10 per cent,” it added.
Earlier, FIIs were allowed to offer cash and foreign sovereign securities with AAA rating as collateral in the F&O segment, while cash, foreign sovereign securities with AAA rating and government securities were allowed in the cash segment.
Cabinet panel approves five oil, gas blocks operations
New Delhi: Reliance Industries Ltd, Cairn India and ONGC, contractors of five oil and gas blocks in the East Coast, can continue with their exploration and development activity following the Cabinet Committee on Investment (CCI) nod on Thursday.
Work on these blocks, where investment close to $10.7 billion has already been made, was stuck because of inter-ministerial differences, particularly relating to Defence issues.
Work on these blocks was affected due to issues raised by the Navy, DRDO and the Air Force.
The blocks include the Krishna-Godavari Basin D6 block operated by Reliance.
Though no official communication was available, sources said CCI had approved five blocks, two with conditions.
The Petroleum and Natural Gas Ministry had sought approval for eight blocks, of which one was already relinquished by the contractor, Reliance Industries Ltd.
Out of the remaining seven, conditional clearance for four blocks – two of Reliance Industries, one each of ONGC consortium and Cairn India – were sought.
The Ministry had also sought CCI approval to declare three blocks as ‘no go’ areas.
Two blocks belonged to the ONGC-led consortium and one to the Oil India Ltd-led consortium.
The CCI, headed by Prime Minister Manmohan Singh, was set up to fast-track clearances to infrastructure projects involving investments of over Rs 1,000 crore.
In addition, Jayanthi Natarajan, Minister of State (Independent Charge) for Environment and Forests, apprised the high-level panel on the steps taken by her Ministry to streamline the processes relating to seeking various clearances.
Work on these blocks, where investment close to $10.7 billion has already been made, was stuck because of inter-ministerial differences, particularly relating to Defence issues.
Work on these blocks was affected due to issues raised by the Navy, DRDO and the Air Force.
The blocks include the Krishna-Godavari Basin D6 block operated by Reliance.
Though no official communication was available, sources said CCI had approved five blocks, two with conditions.
The Petroleum and Natural Gas Ministry had sought approval for eight blocks, of which one was already relinquished by the contractor, Reliance Industries Ltd.
Out of the remaining seven, conditional clearance for four blocks – two of Reliance Industries, one each of ONGC consortium and Cairn India – were sought.
The Ministry had also sought CCI approval to declare three blocks as ‘no go’ areas.
Two blocks belonged to the ONGC-led consortium and one to the Oil India Ltd-led consortium.
The CCI, headed by Prime Minister Manmohan Singh, was set up to fast-track clearances to infrastructure projects involving investments of over Rs 1,000 crore.
In addition, Jayanthi Natarajan, Minister of State (Independent Charge) for Environment and Forests, apprised the high-level panel on the steps taken by her Ministry to streamline the processes relating to seeking various clearances.
Wednesday, March 20, 2013
Tata Consulting Engineers bags Nigerian contract for fertiliser plant
Mumbai: Tata Consulting Engineers, a unit of Tata Sons, has been appointed as the management consultant for a $1.9-billion fertiliser plant being constructed by pan-African conglomerate Dangote Group in Nigeria.
TCE will assist the Dangote Group with review engineering, construction management, quality management, health and safety management and other project management services, as per details on the Dangote website.
In a written response to Business Line, J. P. Haran, Managing Director, Tata Consulting Engineers, said the contract with Dangote is for a period of three years. However, Haran did not disclose the commercial terms of the engagement citing 'contractual agreements'.
The plant, to be erected in Nigeria’s Edo state, is set to be Africa’s largest fertiliser unit in terms of production capacity. It will be able to produce 2,200 tonnes per day (TPD) of ammonia and 7,700 TPD of granulated urea (two 3,850 TPD-capacity trains), according to a statement from the Dangote Group.
The privately held TCE is an integrated engineering consultancy solutions provider. It offers engineering services in industry segments such as power, nuclear energy, chemicals and infrastructure, among others. Globally, it has delivered over 7,000 projects. The company was established as Tata-Ebasco Consulting Engineering Services in 1962.
Headquartered in Lagos, Nigeria, the $2-billion Dangote Group is a diversified conglomerate, with interests in cement, sugar, flour, salt, pasta, beverages, chemicals, oil and gas and telecommunications.
TCE will assist the Dangote Group with review engineering, construction management, quality management, health and safety management and other project management services, as per details on the Dangote website.
In a written response to Business Line, J. P. Haran, Managing Director, Tata Consulting Engineers, said the contract with Dangote is for a period of three years. However, Haran did not disclose the commercial terms of the engagement citing 'contractual agreements'.
The plant, to be erected in Nigeria’s Edo state, is set to be Africa’s largest fertiliser unit in terms of production capacity. It will be able to produce 2,200 tonnes per day (TPD) of ammonia and 7,700 TPD of granulated urea (two 3,850 TPD-capacity trains), according to a statement from the Dangote Group.
The privately held TCE is an integrated engineering consultancy solutions provider. It offers engineering services in industry segments such as power, nuclear energy, chemicals and infrastructure, among others. Globally, it has delivered over 7,000 projects. The company was established as Tata-Ebasco Consulting Engineering Services in 1962.
Headquartered in Lagos, Nigeria, the $2-billion Dangote Group is a diversified conglomerate, with interests in cement, sugar, flour, salt, pasta, beverages, chemicals, oil and gas and telecommunications.
Omidyar Network invests $100-200 mn in Indian companies
Bengaluru: US-based philanthropic investment firm Omidyar Network is looking to invest $100-$200 million in for-profit and non-profit ventures in the country over the next 3-5 years.
Founded by eBay founder Pierre Omidyar and his wife Pam, the firm has invested $113 mn across 35 companies in India since 2010. Omidyar investments are focused around consumer internet and mobile, entrepreneurship, financial inclusion, government transparency and property rights. The firm invests in firms where social impact is the unifying criterion for investments.
A few months back, the company invested in Kolkata-based IT-enabled services firm iMerit Technology Services. The investment will help iMerit scale its operations, open additional project centres and expand its senior management team. Omidyar's portfolio of companies includes online classifieds Quickr, online pharmacy and medical store HealthKart and civic affair NGO Janaagraha.
Omidyar invests $1mn to$10 mn in for-profit companies and $500,000 to $5mn in non-profit companies. "Like a series A investor or an early-stage VC firm, our stake in for-profit companies varies between 10-15% and 25-40%. For non-profit,we will not support any organisation for more than 25%-33% of its funding. We want to make sure that there is a robust donor base supporting them," said Jayant Sinha, partner and managing director, Omidyar Network India Advisors.
Sinha said his portfolio companies are technology-oriented. "It's is a great way to scale and be non-linear. We look for companies that use technology innovatively," he said.
Last year, Omidyar has invested in companies like Bangalore-based enterprise financing firm Vistaar and Mumbai-based strategic philanthropy foundation Dasra. It has also granted $950,000 to Akshara Foundation and $1.5 million to Consortium for Affordable Medical Technologies (CamTech). Globally, the firm has committed about $608 mn since its inception with $277 mn as for-profit investments and $331 mn as non-profit grants.
Founded by eBay founder Pierre Omidyar and his wife Pam, the firm has invested $113 mn across 35 companies in India since 2010. Omidyar investments are focused around consumer internet and mobile, entrepreneurship, financial inclusion, government transparency and property rights. The firm invests in firms where social impact is the unifying criterion for investments.
A few months back, the company invested in Kolkata-based IT-enabled services firm iMerit Technology Services. The investment will help iMerit scale its operations, open additional project centres and expand its senior management team. Omidyar's portfolio of companies includes online classifieds Quickr, online pharmacy and medical store HealthKart and civic affair NGO Janaagraha.
Omidyar invests $1mn to$10 mn in for-profit companies and $500,000 to $5mn in non-profit companies. "Like a series A investor or an early-stage VC firm, our stake in for-profit companies varies between 10-15% and 25-40%. For non-profit,we will not support any organisation for more than 25%-33% of its funding. We want to make sure that there is a robust donor base supporting them," said Jayant Sinha, partner and managing director, Omidyar Network India Advisors.
Sinha said his portfolio companies are technology-oriented. "It's is a great way to scale and be non-linear. We look for companies that use technology innovatively," he said.
Last year, Omidyar has invested in companies like Bangalore-based enterprise financing firm Vistaar and Mumbai-based strategic philanthropy foundation Dasra. It has also granted $950,000 to Akshara Foundation and $1.5 million to Consortium for Affordable Medical Technologies (CamTech). Globally, the firm has committed about $608 mn since its inception with $277 mn as for-profit investments and $331 mn as non-profit grants.
Dairy research body produces world’s 2nd cloned male calf Swaran
Karnal: A male buffalo calf has been produced through at the Karnal-based National Dairy Research Institute (NDRI). This is the world’s second male cloned calf.
The calf, named Swaran, was born through the new and advanced ‘hand-guided cloning technique’.
The calf, born by normal parturition and weighs 55 kg, is reported to be normal and healthy.
“Swaran” is keeping good health and has started suckling milk, said A.K. Srivastava, Director, National Dairy Research Institute.
This cloned buffalo calf is unique and different from the earlier clones because, in this case, the donor somatic cell used was isolated from the seminal plasma of a bull which is currently being used for donating semen at the Animal Breeding Research Centre of NDRI, Karnal, said Srivastava.
Achievement
The scientists said that this achievement was of particular interest to them because, using the same approach, they expect to re-create highly valuable progeny tested bulls, which may have died long ago, using their frozen semen available at breeding centre.
Srivastava said that there is an acute shortage of bulls and that this amay enable scientists to shrink the gap between the demand and supply of the bulls in a short time.
Swaran is the second male cloned calf in the world. Before Swaran, Shreshth was born on August 26, 2010 at NDRI.
Shresth was the first male buffalo born through the “hand-guided cloning technique" developed at NDRI.
Earlier this year, on January 25, the cloned buffalo Garima II gave birth to a calf and she was named Mahima.
The calf, named Swaran, was born through the new and advanced ‘hand-guided cloning technique’.
The calf, born by normal parturition and weighs 55 kg, is reported to be normal and healthy.
“Swaran” is keeping good health and has started suckling milk, said A.K. Srivastava, Director, National Dairy Research Institute.
This cloned buffalo calf is unique and different from the earlier clones because, in this case, the donor somatic cell used was isolated from the seminal plasma of a bull which is currently being used for donating semen at the Animal Breeding Research Centre of NDRI, Karnal, said Srivastava.
Achievement
The scientists said that this achievement was of particular interest to them because, using the same approach, they expect to re-create highly valuable progeny tested bulls, which may have died long ago, using their frozen semen available at breeding centre.
Srivastava said that there is an acute shortage of bulls and that this amay enable scientists to shrink the gap between the demand and supply of the bulls in a short time.
Swaran is the second male cloned calf in the world. Before Swaran, Shreshth was born on August 26, 2010 at NDRI.
Shresth was the first male buffalo born through the “hand-guided cloning technique" developed at NDRI.
Earlier this year, on January 25, the cloned buffalo Garima II gave birth to a calf and she was named Mahima.
Karnataka clears 37 projects worth Rs 34,702 crore
Bangalore: The State high-level clearance committee (SHLCC) chaired by Chief Minister Jagadish Shettar has cleared 37 projects with an investment of over Rs 3,4702.09 crore.
The SHLCC cleared projects are expected to create 1.58 lakh jobs spread across 18 districts. The clearance committee meet was attended by Industries Minister Murgesh Nirani, Principal Secretary (Industries and Commerce) M.N. Vidyashankar and officials from other allied departments.
Following are the sector-wise projects approved: agri-based three projects - investment Rs 704.79 crore - employment offered for 5,325 people; Cement two projects - investment Rs 1,848.14 crore - employment offered for 377 people; Chemicals two projects - investment Rs 2,798 crore - employment offered for 1,345 people; Power three projects - investment Rs 5,052.25 crore - employment offered for 2,875 people; Engineering five projects - investment Rs 6,912 crore - employment offered for 7,696 people; Infrastructure five projects - investment Rs 4,096.6 crore - employment offered for 1.03 lakh people; Iron and steel five projects - investment Rs 8,658.02 crore - employment offered for 4,917 people; IT Park four projects - investment Rs 3,008.83 crore - employment offered for 24,000 people; Others three project - investment Rs 321.72 crore - employment offered for 1,000 people; SEZ one projects - investment Rs 472 crore - employment offered for 1,000 people; Sugar three projects - investment Rs 580 crore - employment offered for 974 people; Textiles one projects - investment Rs 249.74 crore - employment offered for 835 people.
Bagalkot – one project - investments Rs 495.24 crore - employment for 145 people; Bangalore (rural) – four projects - investments Rs 1,593.22 crore - employment for 5,936 people; Bangalore (city) – four projects - investments Rs 4,063.83 crore - employment for 20,195 people; Belgaum – two projects - investments Rs 4,182 crore - employment 2,331 people; Bellary - two project - investment Rs 7,273 crore - employment for 3,291 people; Bijapur – five projects - investments Rs 3,695.78 crore - employment for 2,790 people; Chikkaballapur - two projects - investments Rs 2,654.5 crore - employment for one lakh people; Chitradurga – one project - investments Rs 247.6 crore - employment for 800 people; Dharwad – two projects - investments Rs 712 crore - employment for 2,580 people; Gulbarga – two projects - investments Rs 1,562.9 crore - employment for 569 people; Kolar – one project - investments Rs 63 crore, employment for 70 people; Koppal – two projects - investments Rs 892 crore, employment for 1,276 people; Mandya – one project - investments Rs 493.02 crore - employment for 350 people; Mysore – one project - investments Rs 2,650 crore employment for 1,000 people; Ramnagar – two projects - investments Rs 1,382 crore employment for 5,875 people; Tumkur – three projects - investments Rs 642 crore employment for 9,345 people; Yadgir - one project - investments Rs 210 crore - employment for 337 people.
The SHLCC cleared projects are expected to create 1.58 lakh jobs spread across 18 districts. The clearance committee meet was attended by Industries Minister Murgesh Nirani, Principal Secretary (Industries and Commerce) M.N. Vidyashankar and officials from other allied departments.
Following are the sector-wise projects approved: agri-based three projects - investment Rs 704.79 crore - employment offered for 5,325 people; Cement two projects - investment Rs 1,848.14 crore - employment offered for 377 people; Chemicals two projects - investment Rs 2,798 crore - employment offered for 1,345 people; Power three projects - investment Rs 5,052.25 crore - employment offered for 2,875 people; Engineering five projects - investment Rs 6,912 crore - employment offered for 7,696 people; Infrastructure five projects - investment Rs 4,096.6 crore - employment offered for 1.03 lakh people; Iron and steel five projects - investment Rs 8,658.02 crore - employment offered for 4,917 people; IT Park four projects - investment Rs 3,008.83 crore - employment offered for 24,000 people; Others three project - investment Rs 321.72 crore - employment offered for 1,000 people; SEZ one projects - investment Rs 472 crore - employment offered for 1,000 people; Sugar three projects - investment Rs 580 crore - employment offered for 974 people; Textiles one projects - investment Rs 249.74 crore - employment offered for 835 people.
Bagalkot – one project - investments Rs 495.24 crore - employment for 145 people; Bangalore (rural) – four projects - investments Rs 1,593.22 crore - employment for 5,936 people; Bangalore (city) – four projects - investments Rs 4,063.83 crore - employment for 20,195 people; Belgaum – two projects - investments Rs 4,182 crore - employment 2,331 people; Bellary - two project - investment Rs 7,273 crore - employment for 3,291 people; Bijapur – five projects - investments Rs 3,695.78 crore - employment for 2,790 people; Chikkaballapur - two projects - investments Rs 2,654.5 crore - employment for one lakh people; Chitradurga – one project - investments Rs 247.6 crore - employment for 800 people; Dharwad – two projects - investments Rs 712 crore - employment for 2,580 people; Gulbarga – two projects - investments Rs 1,562.9 crore - employment for 569 people; Kolar – one project - investments Rs 63 crore, employment for 70 people; Koppal – two projects - investments Rs 892 crore, employment for 1,276 people; Mandya – one project - investments Rs 493.02 crore - employment for 350 people; Mysore – one project - investments Rs 2,650 crore employment for 1,000 people; Ramnagar – two projects - investments Rs 1,382 crore employment for 5,875 people; Tumkur – three projects - investments Rs 642 crore employment for 9,345 people; Yadgir - one project - investments Rs 210 crore - employment for 337 people.
Bahrain announces big ticket investment plans for Kerala
Kochi: Bahrain is planning to invest in various sectors in Kerala in a big way.
Bahraini Minister for Transportation Kamal bin Ahmed Mohamed said here on Monday that his country had identified various sectors, including real estate, healthcare and infrastructure, in the State for investment.
Discussions on
“We had a series of discussions and B2B meetings with government and other private firms in this regard. Some of the projects are expected to be finalised in the next round of discussions,” the Minister told reporters here.
However, he refused to divulge the volume of investments. It is too early to give any figures, he said. The Minister was part of a business delegation to Kerala from Bahrain led by Prince Salman Bin Hamad Al-Khalifa, the first Deputy Prime Minister and Chairman of the Bahrain Economic Development Board.
The visit aims to strengthen bilateral, political and trade relations between the two countries.
The delegation visited Kochi and conducted a series of meetings with senior officials and members of the private sector in order to demonstrate Bahrain’s position as a gateway to the Gulf.
Bahrain also evinced interest in the Financial City project announced by the Kerala Government in the recent budget.
An MoU was also signed between the Kozhikode-based Baby Memorial Hospital and VKL Group, a member of Al Namal Group in Bahrain. Baby Memorial Hospital will manage two hospitals and one medical centre being promoted by VKL group in Bahrain.
The visit also provided an opportunity to boost links between the two countries who have always maintained a friendly and stable relationship, he said.
He pointed out that total trade between India and Bahrain in 2011 was $ 1.7 billion and is looking at a growth rate of 3-4 per cent in 2013.
Crisis impact
On the global economic crisis, especially its impact on the Gulf countries, he said Bahrain was one of the countries in the Gulf region not affected by the crisis. There was only a slowdown in the economy at the time of the crisis in 2008 with a growth rate of 3.9 per cent.
However, the country maintained a growth rate of 5 per cent in 2012 and would go up further in 2013, he said.
“We are not looking at an artificial growth rate but a sustainable one”, he said. The financial sector contributed more to the country’s economy followed by logistics and tourism.
Bahraini Minister for Transportation Kamal bin Ahmed Mohamed said here on Monday that his country had identified various sectors, including real estate, healthcare and infrastructure, in the State for investment.
Discussions on
“We had a series of discussions and B2B meetings with government and other private firms in this regard. Some of the projects are expected to be finalised in the next round of discussions,” the Minister told reporters here.
However, he refused to divulge the volume of investments. It is too early to give any figures, he said. The Minister was part of a business delegation to Kerala from Bahrain led by Prince Salman Bin Hamad Al-Khalifa, the first Deputy Prime Minister and Chairman of the Bahrain Economic Development Board.
The visit aims to strengthen bilateral, political and trade relations between the two countries.
The delegation visited Kochi and conducted a series of meetings with senior officials and members of the private sector in order to demonstrate Bahrain’s position as a gateway to the Gulf.
Bahrain also evinced interest in the Financial City project announced by the Kerala Government in the recent budget.
An MoU was also signed between the Kozhikode-based Baby Memorial Hospital and VKL Group, a member of Al Namal Group in Bahrain. Baby Memorial Hospital will manage two hospitals and one medical centre being promoted by VKL group in Bahrain.
The visit also provided an opportunity to boost links between the two countries who have always maintained a friendly and stable relationship, he said.
He pointed out that total trade between India and Bahrain in 2011 was $ 1.7 billion and is looking at a growth rate of 3-4 per cent in 2013.
Crisis impact
On the global economic crisis, especially its impact on the Gulf countries, he said Bahrain was one of the countries in the Gulf region not affected by the crisis. There was only a slowdown in the economy at the time of the crisis in 2008 with a growth rate of 3.9 per cent.
However, the country maintained a growth rate of 5 per cent in 2012 and would go up further in 2013, he said.
“We are not looking at an artificial growth rate but a sustainable one”, he said. The financial sector contributed more to the country’s economy followed by logistics and tourism.
Tuesday, March 19, 2013
Eco Rent a Car, Estee Lauder join hands for Limousine launch in India
Kolkata: India's premium car rental company Eco Rent a Car has launched two co branded stretched limousines in Delhi and Mumbai respectively with leading American personal care and glamour brand Estee Lauder.
Eco Rent a Car director Rajesh Loomba feels that the premium car user segment is recession proof and is confident that the top end of the Indian retail market will spend on such experiential travel products as travelling in a Limousine.
With the wedding season just around the corner, Eco's alliance with Estee Lauder is significant. Chrysler Limousine and Estee Lauder is trying to find common consumers in the wedding segment. It has become an essential ingredient to add glamour and class to the wedding, making it a perfect choice for the bride & groom.
"Limousine is also a perfect gift to make someone feel special, it can be customised to offer a personalised service and clients can also order fine wine, flowers, cake or balloons, to be included with the Limo. The Limo is slated to replace the conventional doli," Mr Loomba added.
The wedding packages start at Rs 51,000 for four hours for a decorated Limousine.
Imported from USA and manufactured by Chrysler Corporation, USA, these limousines shall be parked in prominent locations in Delhi and Mumbai respectively and shall be available on hire for as less as Rs 30,000 for a four hours nightlife or corporate package and Rs 6000 for each extra hour and 10 kms.
Elaborating further, Mr Loomba said, "We are witnessing unprecedented response to our limousines in Delhi and NCR. The fact that it is an original American made Chrysler Stretch Limousine and not a country made copy-cat limo, has wedding organisers contacting us for bookings months in advance. Delhi's elite socialites and urban youth along with corporate, and hotels are those who have already made bookings with us and we expect this demand to multiply as we approach the festive season."
Eco Rent A Car has close to 1100 vehicles in its fleet and is one of the largest luxury car rental companies in India with office in all major metro cities providing services in 45 cities in India. The company plans to import several such super luxury vehicles for the automobile lovers and offer them through their outlets in Hyderabad, Bangalore, Pune, Chandigarh and Chennai.
Eco Rent a Car director Rajesh Loomba feels that the premium car user segment is recession proof and is confident that the top end of the Indian retail market will spend on such experiential travel products as travelling in a Limousine.
With the wedding season just around the corner, Eco's alliance with Estee Lauder is significant. Chrysler Limousine and Estee Lauder is trying to find common consumers in the wedding segment. It has become an essential ingredient to add glamour and class to the wedding, making it a perfect choice for the bride & groom.
"Limousine is also a perfect gift to make someone feel special, it can be customised to offer a personalised service and clients can also order fine wine, flowers, cake or balloons, to be included with the Limo. The Limo is slated to replace the conventional doli," Mr Loomba added.
The wedding packages start at Rs 51,000 for four hours for a decorated Limousine.
Imported from USA and manufactured by Chrysler Corporation, USA, these limousines shall be parked in prominent locations in Delhi and Mumbai respectively and shall be available on hire for as less as Rs 30,000 for a four hours nightlife or corporate package and Rs 6000 for each extra hour and 10 kms.
Elaborating further, Mr Loomba said, "We are witnessing unprecedented response to our limousines in Delhi and NCR. The fact that it is an original American made Chrysler Stretch Limousine and not a country made copy-cat limo, has wedding organisers contacting us for bookings months in advance. Delhi's elite socialites and urban youth along with corporate, and hotels are those who have already made bookings with us and we expect this demand to multiply as we approach the festive season."
Eco Rent A Car has close to 1100 vehicles in its fleet and is one of the largest luxury car rental companies in India with office in all major metro cities providing services in 45 cities in India. The company plans to import several such super luxury vehicles for the automobile lovers and offer them through their outlets in Hyderabad, Bangalore, Pune, Chandigarh and Chennai.
AP unveils country's 1st 'action plan' for farm sector
Hyderabad: The Andhra Pradesh Government has come out with the country’s first Budget proposals for the agriculture sector. It has proposed an action plan of Rs 25,962 crore for agriculture and allied subjects for the 2012-13 financial year.
The programme earmarks Rs 17,694 crore for the Plan component, with the rest being allotted for non-expenditure.
Action plan
Presenting the exclusive ‘Action Plan’ for the primary sector at the Legislative Assembly here on Monday, Agriculture Minister Kanna Lakshminarayana pegged the total investments for the sector at Rs 98,940 crore against Rs 79,924 crore, an increase of 24 per cent over the last year. Investments included Rs 72,450-crore planned under the agriculture credit plan.
The Agriculture Minister announced a Rs 100-crore fund for market intervention to ensure minimum support price for crops such as paddy, jowar, maize, ragi and pulses.
A Rs 590-crore Natural Calamities Fund to provide farmers immediate relief in times of distress has also been proposed.
The other major allocation is for agriculture power. The Government would provide Rs 3,622 crore to power distribution companies (discoms) towards power subsidy.
It also talked about high-voltage distribution systems to about 2.50 lakh connections in 16 districts at a cost of Rs 1,115 crore.
With a view to add value to fams products, the plan allotted Rs 120 crore to set up oil palm processing units, rice bran oil mills, oleoresins and spice oil (chillies and turmeric) units.
Faux pas
Though the Government went to town about the first ever Budget for agriculture and allied subjects in the last few weeks, it finally came out with an Action Plan and not with a Budget.
The printed material suggested that it is Budget Speech but officials, at the last moment, struck off the word ‘Budget’ with a pen and mentioned ‘Action Plan’.
Another version doing rounds was, the Government had decided to avoid using the word ‘Budget’ as it could pose technical problems.
The Major Irrigation Ministry, too, objected to play a subservient role, claiming agriculture is a much smaller subject financially speaking.
The programme earmarks Rs 17,694 crore for the Plan component, with the rest being allotted for non-expenditure.
Action plan
Presenting the exclusive ‘Action Plan’ for the primary sector at the Legislative Assembly here on Monday, Agriculture Minister Kanna Lakshminarayana pegged the total investments for the sector at Rs 98,940 crore against Rs 79,924 crore, an increase of 24 per cent over the last year. Investments included Rs 72,450-crore planned under the agriculture credit plan.
The Agriculture Minister announced a Rs 100-crore fund for market intervention to ensure minimum support price for crops such as paddy, jowar, maize, ragi and pulses.
A Rs 590-crore Natural Calamities Fund to provide farmers immediate relief in times of distress has also been proposed.
The other major allocation is for agriculture power. The Government would provide Rs 3,622 crore to power distribution companies (discoms) towards power subsidy.
It also talked about high-voltage distribution systems to about 2.50 lakh connections in 16 districts at a cost of Rs 1,115 crore.
With a view to add value to fams products, the plan allotted Rs 120 crore to set up oil palm processing units, rice bran oil mills, oleoresins and spice oil (chillies and turmeric) units.
Faux pas
Though the Government went to town about the first ever Budget for agriculture and allied subjects in the last few weeks, it finally came out with an Action Plan and not with a Budget.
The printed material suggested that it is Budget Speech but officials, at the last moment, struck off the word ‘Budget’ with a pen and mentioned ‘Action Plan’.
Another version doing rounds was, the Government had decided to avoid using the word ‘Budget’ as it could pose technical problems.
The Major Irrigation Ministry, too, objected to play a subservient role, claiming agriculture is a much smaller subject financially speaking.
IT market will touch Rs 1.75 lakh cr in 3 years
Bengaluru: Despite a sharp slowdown in economic growth, India’s domestic IT market will touch Rs 1.75 lakh crore by 2016, according to a Boston Consulting Group and CII study.
This is expected to go up as companies based in the country look at increasingly embracing IT. The report pegs IT services sector to grow at 14 per cent and touch Rs 96,600 crore by 2016.
The domestic IT sector was worth Rs 99,700 crore in 2011 with IT services contributing Rs 49,400 crore followed by contribution from hardware such as PCs, estimated at Rs 32,500 crore. Software services contributed Rs 17,800 crore of the overall pie, according to the report.
According to Infosys Co-founder and CII President, Kris Gopalakrishnan, the IT sector should focus on doing projects with Indian companies.
Rise in IT adoption
The report said that IT services and software products will lead this growth due to an increase in IT adoption by companies, shift towards outsourcing and emergence of new technologies such as social media and cloud computing. Sectors such as education, healthcare, media and retail are relatively low IT spenders currently, but are expected to significantly increase their expenditure on this front in the future, the report added.
According to Microsoft Corporation India Chairman Bhaskar Pramanik - who is the Chairman of CII National Committee on IT, ITeS and e-commerce, there is an opportunity for the IT sector to work with the Government sector, going forward. Companies such as TCS and HCL work with Indian companies but have the found the going tough in the last couple of years as companies have held back IT spending on the back of economic uncertainty coupled with slowdown in growth.
Last year, Infosys bagged projects from Ministry of Corporate Affairs to maintain their IT systems.
IMF estimates that India will grow at 5.4 per cent and the IT sector has contributed 7.5 per cent to India’s GDP, according to the report.
This is expected to go up as companies based in the country look at increasingly embracing IT. The report pegs IT services sector to grow at 14 per cent and touch Rs 96,600 crore by 2016.
The domestic IT sector was worth Rs 99,700 crore in 2011 with IT services contributing Rs 49,400 crore followed by contribution from hardware such as PCs, estimated at Rs 32,500 crore. Software services contributed Rs 17,800 crore of the overall pie, according to the report.
According to Infosys Co-founder and CII President, Kris Gopalakrishnan, the IT sector should focus on doing projects with Indian companies.
Rise in IT adoption
The report said that IT services and software products will lead this growth due to an increase in IT adoption by companies, shift towards outsourcing and emergence of new technologies such as social media and cloud computing. Sectors such as education, healthcare, media and retail are relatively low IT spenders currently, but are expected to significantly increase their expenditure on this front in the future, the report added.
According to Microsoft Corporation India Chairman Bhaskar Pramanik - who is the Chairman of CII National Committee on IT, ITeS and e-commerce, there is an opportunity for the IT sector to work with the Government sector, going forward. Companies such as TCS and HCL work with Indian companies but have the found the going tough in the last couple of years as companies have held back IT spending on the back of economic uncertainty coupled with slowdown in growth.
Last year, Infosys bagged projects from Ministry of Corporate Affairs to maintain their IT systems.
IMF estimates that India will grow at 5.4 per cent and the IT sector has contributed 7.5 per cent to India’s GDP, according to the report.
Signing of MoUs between Ministry of Corporate Affairs and financial intelligence unit & NIELIT
New Delhi: Giving a fillip to the early establishment of a state-of-art Forensic Lab within the premises of Serious Fraud Investigation Office (SFIO) in the national capital; and the development of a Comprehensive Early Warning System (EWS) for detection of corporate fraud and malfeasance at the earliest, three important MoUs were signed here today in the Ministry of Corporate Affairs in the presence of Shri Sachin Pilot, Minister of Corporate Affairs.
The MoUs signed were:
1. Between Director, SFIO ( which functions under the Ministry of Corporate Affairs) and Director, National Institute of Electronics and Information Technology (NIELIT), a scientific organization under the Ministry of Communications and Information Technology;
2. Between Joint Secretary, Ministry of Corporate Affairs and Director, Financial Intelligence Unit (FIU-IND), an agency under the Ministry of Finance; and 3. Director, SFIO and Director, FIU-IND.
Shri. Naved Masood, Secretary, Ministry of Corporate Affairs was also present on the occasion.
As per the Memorandum, NIELIT will set up a state-of-art Forensic Lab within the premises of SFIO - with a total outlay of Rs. 3.80 Crore on a turnkey basis, to be completed in two phases.
The MoUs signed with FIU-IND will lead to better and faster exchange of information between the 3 Govt. of India entities. FIU has been playing a pivotal role in the collection and dissemination of information on suspicious banking transactions under the Prevention of Money Laundering Act, 2002. FIU-IND has been helping both the Ministry and SFIO from time to time by supplying information on suspicious banking transactions. Having access to banking information as well as expertise of FIU, the MoU will help SFIO in conducting its investigation in a more effective manner. These initiatives will facilitate development of a comprehensive EWS for detection of fraud and malfeasance at the earliest.
The MoUs signed were:
1. Between Director, SFIO ( which functions under the Ministry of Corporate Affairs) and Director, National Institute of Electronics and Information Technology (NIELIT), a scientific organization under the Ministry of Communications and Information Technology;
2. Between Joint Secretary, Ministry of Corporate Affairs and Director, Financial Intelligence Unit (FIU-IND), an agency under the Ministry of Finance; and 3. Director, SFIO and Director, FIU-IND.
Shri. Naved Masood, Secretary, Ministry of Corporate Affairs was also present on the occasion.
As per the Memorandum, NIELIT will set up a state-of-art Forensic Lab within the premises of SFIO - with a total outlay of Rs. 3.80 Crore on a turnkey basis, to be completed in two phases.
The MoUs signed with FIU-IND will lead to better and faster exchange of information between the 3 Govt. of India entities. FIU has been playing a pivotal role in the collection and dissemination of information on suspicious banking transactions under the Prevention of Money Laundering Act, 2002. FIU-IND has been helping both the Ministry and SFIO from time to time by supplying information on suspicious banking transactions. Having access to banking information as well as expertise of FIU, the MoU will help SFIO in conducting its investigation in a more effective manner. These initiatives will facilitate development of a comprehensive EWS for detection of fraud and malfeasance at the earliest.
India ups trade target with Africa to $100 b by 2015
New Delhi: India has raised the trade target with Africa to $100 billion to be achieved over the next two years encouraged by the growth in bilateral exports and imports in the current fiscal.
This is despite a dip in the country’s overall trade numbers.
“Despite the gloomy global environment, where there has been a contraction of trade, and with India’s own trade contracting with major trading blocks, we are upwardly revising the target with Africa to at least $100 billion by 2015 because I feel that it is achievable,” Commerce and Industry Minister Anand Sharma said addressing trade ministers from Africa in a ministers’ round table meeting organised by the CII.
India-Africa bilateral trade was $67 billion in 2011-12, registering a growth of 28 per cent over the preceding year. But what is interesting is the fact that in the first 10 months of this fiscal where India’s over-all trade declined 1.28 per cent, the country’s trade with Africa posted a 8.32 per cent growth.
The increase in trade with Africa is partly due to shrinking demand in the Western countries due to continuing global economic crisis and partly due to incentives given by the Government to diversify exports particularly to countries in Africa and Latin America.
India is conducting a feasibility study for a Free Trade Agreement with the Common Market for Eastern and Southern Africa (COMESA) members, the largest economic group in Africa and negotiations on a Preferential Trade Agreement (an FTA involving a limited number of goods) with the South Africa Customs Union, Sharma said.
This is despite a dip in the country’s overall trade numbers.
“Despite the gloomy global environment, where there has been a contraction of trade, and with India’s own trade contracting with major trading blocks, we are upwardly revising the target with Africa to at least $100 billion by 2015 because I feel that it is achievable,” Commerce and Industry Minister Anand Sharma said addressing trade ministers from Africa in a ministers’ round table meeting organised by the CII.
India-Africa bilateral trade was $67 billion in 2011-12, registering a growth of 28 per cent over the preceding year. But what is interesting is the fact that in the first 10 months of this fiscal where India’s over-all trade declined 1.28 per cent, the country’s trade with Africa posted a 8.32 per cent growth.
The increase in trade with Africa is partly due to shrinking demand in the Western countries due to continuing global economic crisis and partly due to incentives given by the Government to diversify exports particularly to countries in Africa and Latin America.
India is conducting a feasibility study for a Free Trade Agreement with the Common Market for Eastern and Southern Africa (COMESA) members, the largest economic group in Africa and negotiations on a Preferential Trade Agreement (an FTA involving a limited number of goods) with the South Africa Customs Union, Sharma said.
Small-scale units promised help to step up exports
New Delhi: Cabinet Secretary Ajit Seth has assured the micro, small and medium enterprises (MSME) that the Government would soon take steps to increase exports from the sector.
In a review meeting of the export scenario that focussed on the MSME sector, Seth said that small enterprises were the backbone of the country and needed to be encouraged.
The Cabinet Secretary said that he would form two-three groups to look at ways suggested by the industry to increase exports from the MSME sector and would hold another review meeting with other Secretaries in three weeks to see what could be done quickly.
Secretaries from the ministries of finance, commerce, industry, steel and food processing attended the meeting on Friday, an official release said. Industry representatives focused on areas such as cost of credit, technology upgradation, skill training, packaging and export incentives.
In a review meeting of the export scenario that focussed on the MSME sector, Seth said that small enterprises were the backbone of the country and needed to be encouraged.
The Cabinet Secretary said that he would form two-three groups to look at ways suggested by the industry to increase exports from the MSME sector and would hold another review meeting with other Secretaries in three weeks to see what could be done quickly.
Secretaries from the ministries of finance, commerce, industry, steel and food processing attended the meeting on Friday, an official release said. Industry representatives focused on areas such as cost of credit, technology upgradation, skill training, packaging and export incentives.
Isuzu to invest Rs 1,500 crore over 5-7 years for a plant in AP
Hyderabad: Isuzu Motors, the Japanese car, commercial vehicle and heavy truck manufacturer, has agreed to set up its Greenfield manufacturing facility for pickup trucks or light commercial vehicles and sports utility vehicles in Andhra Pradesh, India's southern state, to roll out vehicles by sometime late 2015.
The Isuzu Deputy Managing Director Shigeru Wakabayashi, said the project, involving an investment of Rs 1,500 crore over 5-7 years, would have an installed capacity of 1.2 lakh units, a fourth of which would be exported.
"We plan to sell some 80,000 units in the domestic market, which is growing at a healthy pace on the back of steady economic growth, and export some 40,000 units," he told reporters after signing agreements with the AP government and Sri City, a special economic zone in South of AP's Chittoor district, where the facility would be set up.
The Tokyo headquartered company currently with manufacturing facilities in Thailand and China has been exporting its vehicles to over 100 countries across the globe.
AP, which could not succeed for long in roping in major automobile manufacturers into the state in the absence of supplier or component manufactures' network, now hopes the Isuzu facility to help it build a suppliers' cluster, said the industries secretary Pradeep Chandra.
"While Toyota facility helped Karnataka attract some 150 auto component manufacturers, it was Nissan and Hyundai that facilitated Tamil Nadu build a network of over 250 auto part suppliers. We hope a similar success in establishing auto component manufacturers' cluster in AP," he said.
Isuzu officials said they had zeroed in on Sri City, which is some 50km from Chennai that houses many automobile related industries, apart from the proximity to seaports for imports and exports.
"We plan to produce pickup truck D-MAX and pick up derivative MU-7 from the AP facility and we are currently studying details pertaining stamping, welding, painting, assembling, engine manufacturing and transmission assembling," said Wakabayashi.
Terming Isuzu's entry into the Indian market as right timed, he said, "The Indian automobile industry is estimated to expand to some 10-15 million units from the current 3.6 million over the next 10 years."
In the interim period till late 2015, Isuzu Motors plans to import completely knocked down (CKD) units from its Thailand facility and get them assembled at the facility of one of the automobile players in the domestic market. "We have been talking to some players in the market and Hindustan Motors is one among them," he said.
The Isuzu top executive said the company is currently importing completely built units (CBUs) from Thailand and launched them in couple of Indian markets of Hyderabad and Coimbatore to understand the customer preferences and experience.
Further, Wakabayashi said Isuzu was also looking at supporting its Thailand manufacturing facility by exporting cost competitive quality automobile components procured from the Indian market.
The Isuzu Deputy Managing Director Shigeru Wakabayashi, said the project, involving an investment of Rs 1,500 crore over 5-7 years, would have an installed capacity of 1.2 lakh units, a fourth of which would be exported.
"We plan to sell some 80,000 units in the domestic market, which is growing at a healthy pace on the back of steady economic growth, and export some 40,000 units," he told reporters after signing agreements with the AP government and Sri City, a special economic zone in South of AP's Chittoor district, where the facility would be set up.
The Tokyo headquartered company currently with manufacturing facilities in Thailand and China has been exporting its vehicles to over 100 countries across the globe.
AP, which could not succeed for long in roping in major automobile manufacturers into the state in the absence of supplier or component manufactures' network, now hopes the Isuzu facility to help it build a suppliers' cluster, said the industries secretary Pradeep Chandra.
"While Toyota facility helped Karnataka attract some 150 auto component manufacturers, it was Nissan and Hyundai that facilitated Tamil Nadu build a network of over 250 auto part suppliers. We hope a similar success in establishing auto component manufacturers' cluster in AP," he said.
Isuzu officials said they had zeroed in on Sri City, which is some 50km from Chennai that houses many automobile related industries, apart from the proximity to seaports for imports and exports.
"We plan to produce pickup truck D-MAX and pick up derivative MU-7 from the AP facility and we are currently studying details pertaining stamping, welding, painting, assembling, engine manufacturing and transmission assembling," said Wakabayashi.
Terming Isuzu's entry into the Indian market as right timed, he said, "The Indian automobile industry is estimated to expand to some 10-15 million units from the current 3.6 million over the next 10 years."
In the interim period till late 2015, Isuzu Motors plans to import completely knocked down (CKD) units from its Thailand facility and get them assembled at the facility of one of the automobile players in the domestic market. "We have been talking to some players in the market and Hindustan Motors is one among them," he said.
The Isuzu top executive said the company is currently importing completely built units (CBUs) from Thailand and launched them in couple of Indian markets of Hyderabad and Coimbatore to understand the customer preferences and experience.
Further, Wakabayashi said Isuzu was also looking at supporting its Thailand manufacturing facility by exporting cost competitive quality automobile components procured from the Indian market.
Domestic pharma sales grow 7.7% in February
New Delhi: After a recovery in January, drug sales to retailer rose by a modest 7.7 per cent in February, according to a data compiled by market research firm AIOCD AWACS.
This was probably due to a high base given the strong performance last year and higher substitution of branded drugs with their unbranded equivalents.
While 59 out of the top 150 companies managed to grow faster than the industry average, 51 companies reported year-on-year decline in sales during the month.
Among the listed companies, Zydus Cadila topped the list recording 25.3 per cent growth in February. Other companies that managed to grow faster than the industry include Sun Pharma (14.8 per cent), JB Chemicals (13.7 per cent), IPCA Labs (13 per cent), Lupin (11.6 per cent), Glenmark (10.3 per cent) and Cipla (9 per cent).
Even as AstraZeneca (26.8 per cent decline) continued to witness decline for over a year now, Claris topped the losers’ list reporting a 55.9 per cent year-on-year decline in sales. Other listed companies such as Orchid Pharma (26.2 per cent decline), Ind Swift (14.4 per cent), Panacea (8.1 per cent) and Indoco Remedies (2.4 per cent) also figure in the losers’ list.
Anti-infective drugs which account for almost 18 per cent of the market grew at a tardy 5.1 per cent during the month.
Drugs used to treat chronic diseases such as cardio-vascular disorders and diabetes grew by a slow 8.2 per cent and 9.5 per cent, respectively.
This is lower than the healthy double digit growth witnessed in the last few months. But, drugs catering to therapies such as gynaecology (10.8 per cent) and Ophthalmology (10.7 per cent) grew faster than the market.
This was probably due to a high base given the strong performance last year and higher substitution of branded drugs with their unbranded equivalents.
While 59 out of the top 150 companies managed to grow faster than the industry average, 51 companies reported year-on-year decline in sales during the month.
Among the listed companies, Zydus Cadila topped the list recording 25.3 per cent growth in February. Other companies that managed to grow faster than the industry include Sun Pharma (14.8 per cent), JB Chemicals (13.7 per cent), IPCA Labs (13 per cent), Lupin (11.6 per cent), Glenmark (10.3 per cent) and Cipla (9 per cent).
Even as AstraZeneca (26.8 per cent decline) continued to witness decline for over a year now, Claris topped the losers’ list reporting a 55.9 per cent year-on-year decline in sales. Other listed companies such as Orchid Pharma (26.2 per cent decline), Ind Swift (14.4 per cent), Panacea (8.1 per cent) and Indoco Remedies (2.4 per cent) also figure in the losers’ list.
Anti-infective drugs which account for almost 18 per cent of the market grew at a tardy 5.1 per cent during the month.
Drugs used to treat chronic diseases such as cardio-vascular disorders and diabetes grew by a slow 8.2 per cent and 9.5 per cent, respectively.
This is lower than the healthy double digit growth witnessed in the last few months. But, drugs catering to therapies such as gynaecology (10.8 per cent) and Ophthalmology (10.7 per cent) grew faster than the market.
15780 off-grid SPV power plants sanctioned in 2012-13
New Delhi: The Ministry has sanctioned 15780 off-grid solar photovoltaic (SPV) power plants of total capacity of 13.25 MWp to be installed on individual houses in the country during 2012-13.
Under the Off-grid and Decentralized Solar Applications Scheme of Jawaharlal Nehru National Solar Mission the Ministry of New & Renewable Energy is providing a subsidy of 30% of the project cost limited to Rs. 72 per Wp for installation of standalone power plants having module capacity upto 1 kWp on the roof tops of individual houses in the country including rural areas.
This information was given by Minister for New & Renewable Energy, Dr. Farooq Abdullah in Lok Sabha today.
Under the Off-grid and Decentralized Solar Applications Scheme of Jawaharlal Nehru National Solar Mission the Ministry of New & Renewable Energy is providing a subsidy of 30% of the project cost limited to Rs. 72 per Wp for installation of standalone power plants having module capacity upto 1 kWp on the roof tops of individual houses in the country including rural areas.
This information was given by Minister for New & Renewable Energy, Dr. Farooq Abdullah in Lok Sabha today.
Favourable demographics make India an attractive destination for M&A activities: E&Y
New Delhi: Favourable demographics and growth opportunities are the factors that make India an “attractive” destination for merger and acquisition (M&A) activities across diverse sectors including consumer goods and pharmaceuticals, according to Ernst & Young (E&Y), a global consultancy.
“Catering to a growing, expanding and spending population is what every organisation wants to do. So, there is a lot of interest from outside India to come inbound,” as per Ms Phillipa McCrostie, Global Vice Chair (Transaction Advisory Services), E&Y.
“I don’t think India’s growth is based on one factor or bubble that has evaporated and gone away. It is exciting time in India for M&A growth,” Ms McCrostie added.
India’s wonderful population and demographics are attracting a huge amount of interest around industries such as consumer goods, pharmaceuticals and life sciences, among others.
She expects India to continue to be an attractive M&A destination in a sustainable way going forward as there is widespread interest from the US, Europe and others.
She noted that the country is becoming all the more attractive destination with reforms coming through.
“India has to be one of the most attractive investment destinations. Look historically, what India has achieved... If you compare other countries, many don’t have the population, stability that India has been trying to produce in the last ten years,” she added.
McCrostie said that investor pressure is also steadily growing over the time on companies’ growth strategies. “It is translating into what we see as green shoots for some more M&A activities. So to be clear, no boom activity, no bubble activity... But a slow, steady increase in M&A activities is one of the means of achieving growth,” she said.
The “green shoots” for M&A also depends on sectors as well as geographies, she added. Going by E&Y, India is poised to be among the top five M&A destinations this year.
In 2012, BRIC (Brazil, Russia, India and China) nations together accounted for about 15 per cent of global M&A market by value.
“Catering to a growing, expanding and spending population is what every organisation wants to do. So, there is a lot of interest from outside India to come inbound,” as per Ms Phillipa McCrostie, Global Vice Chair (Transaction Advisory Services), E&Y.
“I don’t think India’s growth is based on one factor or bubble that has evaporated and gone away. It is exciting time in India for M&A growth,” Ms McCrostie added.
India’s wonderful population and demographics are attracting a huge amount of interest around industries such as consumer goods, pharmaceuticals and life sciences, among others.
She expects India to continue to be an attractive M&A destination in a sustainable way going forward as there is widespread interest from the US, Europe and others.
She noted that the country is becoming all the more attractive destination with reforms coming through.
“India has to be one of the most attractive investment destinations. Look historically, what India has achieved... If you compare other countries, many don’t have the population, stability that India has been trying to produce in the last ten years,” she added.
McCrostie said that investor pressure is also steadily growing over the time on companies’ growth strategies. “It is translating into what we see as green shoots for some more M&A activities. So to be clear, no boom activity, no bubble activity... But a slow, steady increase in M&A activities is one of the means of achieving growth,” she said.
The “green shoots” for M&A also depends on sectors as well as geographies, she added. Going by E&Y, India is poised to be among the top five M&A destinations this year.
In 2012, BRIC (Brazil, Russia, India and China) nations together accounted for about 15 per cent of global M&A market by value.
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