New Delhi: Delhi and the adjoining National Capital Region (NCR) has seen a 20 per cent rise in property prices over the past year, the highest among all metropolitan regions in the country, according to a report.
The highest growth was seen in Sector 112 of Gurgaon, where capital values rose 72 per cent in the first quarter of 2013 over the same quarter in 2012, said the report by 99acres.com, which has taken into account seven major cities across India.
In Delhi, the localities to see the highest rise were Vasundara Enclave and Sector 13, Dwarka, with around 28 per cent and 25 per cent appreciation, respectively, in the first quarter of 2013 when compared to 2012.
The seven cities covered in the report are Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune.
After Delhi-NCR, Kolkata saw the highest appreciation in prices, at 17 per cent in the same period. The other metros seeing double-digit percentage growth in property prices were Mumbai, Bangalore, Pune and Hyderabad, with 12-15 per cent more in the first quarter, compared to last year.
The report also said the Indian real estate market in 2013 continued to grow, despite subdued GDP growth trends and economic conditions. A drop in home loan rates and a dip in domestic inflationary numbers has infused a sense of buoyancy among buyers.
Housing rentals in the Delhi-NCR rose eight per cent in the first quarter. The highest appreciation during this period was seen in Sector 44, Noida, and Sector 54, Gurgaon, with 70 per cent increase in rentals.
The property market in Delhi-NCR has been upbeat for a while and is expected to see a similar trend on account of low supply and huge latent demand. However, a few localities in South Delhi such as Saket, Vasant Vihar and Greater Kailash saw a price correction of six to eight per cent.
Vineet Singh, business head at 99acres.com, said: “While in Delhi, the prices are averaging or growing slowly, the NCR area is witnessing a price appreciation owing to increased movement of people preferring improved connectivity and affordable housing. The areas closer to Delhi like Sector 44, Noida and Sector 112, Gurgaon, are seeing appreciation in both sale and rentals.”
Success in my Habit
Saturday, April 27, 2013
NTPC to complete 1,500 MW Haryana plant today
New Delhi: NTPC would complete the commercial operation of 1,500 MW Indira Gandhi Super Thermal Power Project at Jharli in Haryana after commissioning the third 500 MW unit on Friday.
With this, all the three units in the first stage shall be commissioned and commercial operation started. There is a future provision for further expansion of 2 x 660MW under the second stage, said a senior NTPC official.
The project Aravali Power Company Pvt Ltd is jointly held by NTPC with 50 per cent share and the remaining equally shared between Haryana Power Generation Corporation Ltd and Indraprastha Power Generation Company Ltd.
The electricity from the unit is supplied to Haryana, Delhi and other northern States. The coal-fired stations received fuel from Mahanadi Coalfields in Odisha. Power evacuation from the project takes place through two associated 400 KV double circuit transmission system to Daultabad in Haryana and Mundka in Delhi.
The first unit was commissioned on October 31, 2010, after 39 months from the date of investment approval. The second unit was commissioned on November 5, 2011.
With this, all the three units in the first stage shall be commissioned and commercial operation started. There is a future provision for further expansion of 2 x 660MW under the second stage, said a senior NTPC official.
The project Aravali Power Company Pvt Ltd is jointly held by NTPC with 50 per cent share and the remaining equally shared between Haryana Power Generation Corporation Ltd and Indraprastha Power Generation Company Ltd.
The electricity from the unit is supplied to Haryana, Delhi and other northern States. The coal-fired stations received fuel from Mahanadi Coalfields in Odisha. Power evacuation from the project takes place through two associated 400 KV double circuit transmission system to Daultabad in Haryana and Mundka in Delhi.
The first unit was commissioned on October 31, 2010, after 39 months from the date of investment approval. The second unit was commissioned on November 5, 2011.
NIIT Tech bags Rs 344-cr AAI deal
New Delhi: NIIT Technologies has bagged a multi-year contract from the Airports Authority of India worth Rs 344 crore for the implementation of Airport Operations Control Centres. This will be in partnership with SITA, a provider of global information and telecommunication solutions for the air transport industry, to streamline operations at the customer touch points. For example, instead of getting boarding gate number and luggage belt number, a customer can get such information through SMS on real time basis. The project is an initiative undertaken by Civil Aviation Ministry towards modernisation of Indian airports to improve capacity utilisation, passenger throughput enhancement, stakeholder management and process standardisation, NIIT Technologies said. The project will be executed within the next 15 months at the airports in Chennai, Kolkata, Ahmedabad, Pune, Tiruchi, Thiruvananthapuram, Kozhikode, Mangalore, Guwahati and Jaipur. The project has a provision for extending the solution to additional 25 airports in India, it said. NIIT Technologies has also provided similar solutions at 12 airports globally, including Hong Kong, Singapore and Abu Dhabi.
Bosch Rexroth starts production at its new plant in Sanand
Ahmedabad: Bosch Rexroth has started operation at its new plant in Sanand with an investment of Rs 280 crore. The company wants to address the specific regional product and system requirements from its facility and it is not only expanding production but also stepping up sales and development.
The company also plans to set up an additional project at its old site in Vatva in Ahmedabad and the parent company will take a decision about the product category.
""Going beyond production, we have developed the Sanand plant more and more into a technology center,"" said Johannes T. Grobe, MD of Bosch Rexroth in India. Based on the product platforms, engineers develop regional product variations at the plant which meet the specific requirements of the local customers.
Bosch Rexroth manufactures hydraulics components and systems at the site, which are used in machinery applications and engineering, factory automation and mobile applications. The new plant has a total area of around 37,000 square meters.
The company employs around 880 associates in India and 550 of them are working in Ahmedabad. The company registered a turnover of Rs 600 crore in 2012. Bosch Rexroth has been present in India for over 35 years and since 2007, the company has almost doubled its transaction volume. ""With our strategy ""local for local"", we are opening up additional market segments that we would not be able to reach from Germany. In the long run, this also ensures higher capacity utilization in Germany,"" said Wolfgang Horn, senior vice president technical of the Industrial Applications business unit at Bosch Rexroth AG.
In March 2013, the company expanded its presence in Fountain Inn in the US and doubled its production capacity there. In 2012, Bosch Rexroth put into operation new production facilities and offices as well as an R&D center in Wujin, China.
The company also plans to set up an additional project at its old site in Vatva in Ahmedabad and the parent company will take a decision about the product category.
""Going beyond production, we have developed the Sanand plant more and more into a technology center,"" said Johannes T. Grobe, MD of Bosch Rexroth in India. Based on the product platforms, engineers develop regional product variations at the plant which meet the specific requirements of the local customers.
Bosch Rexroth manufactures hydraulics components and systems at the site, which are used in machinery applications and engineering, factory automation and mobile applications. The new plant has a total area of around 37,000 square meters.
The company employs around 880 associates in India and 550 of them are working in Ahmedabad. The company registered a turnover of Rs 600 crore in 2012. Bosch Rexroth has been present in India for over 35 years and since 2007, the company has almost doubled its transaction volume. ""With our strategy ""local for local"", we are opening up additional market segments that we would not be able to reach from Germany. In the long run, this also ensures higher capacity utilization in Germany,"" said Wolfgang Horn, senior vice president technical of the Industrial Applications business unit at Bosch Rexroth AG.
In March 2013, the company expanded its presence in Fountain Inn in the US and doubled its production capacity there. In 2012, Bosch Rexroth put into operation new production facilities and offices as well as an R&D center in Wujin, China.
TN to strengthen power infrastructure with Japanese aid
Chennai: Electricity transmission and distribution infrastructure in Tamil Nadu will be strengthened at a cost of Rs 8,000 crore with 56 more sub-stations being set up this year, Chief Minister J. Jayalalithaa announced in the Assembly today.
The sub-stations will improve the quality of power in Chennai, industrial hubs in the State and south Tamil Nadu. Wind power evacuation capacity will also be increased.
She also said the State will enter into long-term, 15-year power purchase agreements through the Case-1 bidding route to bridge electricity shortfall.
Stored hydel power
A 2,000 MW pumped storage hydro power project will be established at a cost of Rs 7,000 crore in the Nilgiris, she said. The Sillahalla hydroelectric project will be established in stages over the next 8-10 years.
In the first stage, a 91-metre high reservoir will be created across the Sillahalla, a tributary of Kundah, and linked to the Avalanche-Emerald reservoirs. In the next stage a 2,000-MW underground power station will be set up between the proposed Sillahalla reservoir and Pillur reservoir 1,500 metres below. The power will be generated when the water flows through an underground tailrace tunnel.
Surplus power during off peak hours will be used from various sources to lift the water again to the upper reservoir to generate power during the peak demand period.
The State Government has formulated an Rs 5,000-crore plan to strengthen the transmission and distribution infrastructure with Rs 3,572 crore special funding from Japan. The loan will carry 0.55 per cent interest and can be repaid over 20 years with repayment starting after 10 years.
Global funding
The sub-stations planned with the international funding include five 400 kV sub-stations and related distribution lines with Rs 2,750-crore assistance from the Japan International Cooperation Agency. These are to come up in Chennai and Coimbatore.
Work on setting up 14, 230 kV sub-stations will be started to support power supply in Chennai, Tiruppur, Madurai, Thanjavur, Ariyalur, Virudhunagar, Erode and Kanchipuram districts.
A 400 kV sub-station will come up in Thiruvallam, Vellore district, at a cost of Rs 1,000 crore. This will help Tamil Nadu share power with other Southern States with the Power Grid Corporation setting up a 765 kV in Thiruvallam.
Tamil Nadu has over 7,140 MW of wind power generation capacity. To address the evacuation capacity shortage from wind generation in South Tamil Nadu, Rs 1,230-crore 400 kV sub-stations with 788 km length of transmission lines will be set to evacuate wind power from Coimbatore, Udumalpet, and Theni region. A similar project is on to evacuate power from Kayathar, Tirunelveli district, with a 400 kV sub-station and transmission lines at a cost of Rs 2,300 crore to bring the power to Chennai.
The State Government has a target of setting up 3,000 MW of solar power capacity over the next three years.
The Government hopes to make solar power generation a people’s movement. It had announced an incentive of Rs 2 a unit in the initial two years, Re 1 in the next two years and Rs 0.50 for two more years for those setting up rooftop solar power generation facilities. Following demand for more incentives, the Chief Minister said buyers can now avail themselves of an alternative option to get an incentive of Rs 20,000 a kw.
The sub-stations will improve the quality of power in Chennai, industrial hubs in the State and south Tamil Nadu. Wind power evacuation capacity will also be increased.
She also said the State will enter into long-term, 15-year power purchase agreements through the Case-1 bidding route to bridge electricity shortfall.
Stored hydel power
A 2,000 MW pumped storage hydro power project will be established at a cost of Rs 7,000 crore in the Nilgiris, she said. The Sillahalla hydroelectric project will be established in stages over the next 8-10 years.
In the first stage, a 91-metre high reservoir will be created across the Sillahalla, a tributary of Kundah, and linked to the Avalanche-Emerald reservoirs. In the next stage a 2,000-MW underground power station will be set up between the proposed Sillahalla reservoir and Pillur reservoir 1,500 metres below. The power will be generated when the water flows through an underground tailrace tunnel.
Surplus power during off peak hours will be used from various sources to lift the water again to the upper reservoir to generate power during the peak demand period.
The State Government has formulated an Rs 5,000-crore plan to strengthen the transmission and distribution infrastructure with Rs 3,572 crore special funding from Japan. The loan will carry 0.55 per cent interest and can be repaid over 20 years with repayment starting after 10 years.
Global funding
The sub-stations planned with the international funding include five 400 kV sub-stations and related distribution lines with Rs 2,750-crore assistance from the Japan International Cooperation Agency. These are to come up in Chennai and Coimbatore.
Work on setting up 14, 230 kV sub-stations will be started to support power supply in Chennai, Tiruppur, Madurai, Thanjavur, Ariyalur, Virudhunagar, Erode and Kanchipuram districts.
A 400 kV sub-station will come up in Thiruvallam, Vellore district, at a cost of Rs 1,000 crore. This will help Tamil Nadu share power with other Southern States with the Power Grid Corporation setting up a 765 kV in Thiruvallam.
Tamil Nadu has over 7,140 MW of wind power generation capacity. To address the evacuation capacity shortage from wind generation in South Tamil Nadu, Rs 1,230-crore 400 kV sub-stations with 788 km length of transmission lines will be set to evacuate wind power from Coimbatore, Udumalpet, and Theni region. A similar project is on to evacuate power from Kayathar, Tirunelveli district, with a 400 kV sub-station and transmission lines at a cost of Rs 2,300 crore to bring the power to Chennai.
The State Government has a target of setting up 3,000 MW of solar power capacity over the next three years.
The Government hopes to make solar power generation a people’s movement. It had announced an incentive of Rs 2 a unit in the initial two years, Re 1 in the next two years and Rs 0.50 for two more years for those setting up rooftop solar power generation facilities. Following demand for more incentives, the Chief Minister said buyers can now avail themselves of an alternative option to get an incentive of Rs 20,000 a kw.
DC Design to manufacture luxury cars in Gujarat
Ahmedabad: Automobile designer Dilip Chhabria's DC Design would set up a manufacturing facility in Gujarat by 2014. The new facility with a capacity to produce 3,500 units of DC's supercars would come up at Sanand, the designer indicated on Wednesday. The new facility that would entail investment of Rs 60 crore would be developed in a year's time and would manufacture super car DC Avanti and eventually the super SUV, Chhabria said.
"I want DC Design to manufacture limited edition cars. Once we are done with 4000 units of one variant, we would phase that out and introduce a new model in the market. With aspirational young executives getting on board to own their sports car and luxury cars, we have decided to operate in the 25-30 lakh segment," he said.
Chhabria said considering he is close to the launch of DC Avanti, a super car, he would soon require a new facility apart from the one in Pune that would manufacture the super car. DC Design customises and manufactures automotives out of its Pune, Mumbai and Gaziabad plants currently. The Ahmedabad facility will be its fourth facility where it would have dedicated capacity to manufacture 1000 units of DC's existing car variants, while additional 2500 would cater to either DC Avanti or the new SUV DC proposes to showcase in Auto Expo 2014.
DC Design has opened its luxury car showroom in Ahmedabad and expects to sell 40 units in the state every month, said Shaunak Shah, director of Abhidev Automotives that has partnered with DC for Gujarat. DC Design has retail outlets across Delhi, Chennai, Hyderabad, Surat, Mumbai, Pune, Kochi, Raipur and Bengaluru.
"I want DC Design to manufacture limited edition cars. Once we are done with 4000 units of one variant, we would phase that out and introduce a new model in the market. With aspirational young executives getting on board to own their sports car and luxury cars, we have decided to operate in the 25-30 lakh segment," he said.
Chhabria said considering he is close to the launch of DC Avanti, a super car, he would soon require a new facility apart from the one in Pune that would manufacture the super car. DC Design customises and manufactures automotives out of its Pune, Mumbai and Gaziabad plants currently. The Ahmedabad facility will be its fourth facility where it would have dedicated capacity to manufacture 1000 units of DC's existing car variants, while additional 2500 would cater to either DC Avanti or the new SUV DC proposes to showcase in Auto Expo 2014.
DC Design has opened its luxury car showroom in Ahmedabad and expects to sell 40 units in the state every month, said Shaunak Shah, director of Abhidev Automotives that has partnered with DC for Gujarat. DC Design has retail outlets across Delhi, Chennai, Hyderabad, Surat, Mumbai, Pune, Kochi, Raipur and Bengaluru.
KSIDC inks pact with Korean firm to produce solar equipment
Thiruvananthapuram: The Kerala State Industrial Development Corporation has signed a memorandum of understanding with Jusung Engineering, a Korean company for setting up a solar cell and module manufacturing facility in the State.
The MoU was signed by KSIDC Managing Director Tom Jose and the company Vice-President Tae Kwang Kang in the presence of Industries Minister P.K. Kunhalikutty here on Wednesday evening.
Location
Kunhalikutty told reporters that it has been proposed to set up the facility at the United Electricals Ltd premises in Kollam.
A pre-feasibility study will be carried out to establish the techno-economic viability of the project. After that the joint venture will prepare a detailed project report.
It will also prepare a marketing plan for the project. KSIDC will assist to tie-up land, power and other infrastructural support.
It has been proposed to manufacture solar cells and modules of 6-inch dimension and 20 per cent efficiency. The annual capacity in the first phase will be about 100 MW.
The cost of the project is estimated at Rs 500 crore. KSIDC has already engaged the Centre for Management Development for conducting the pre-feasibility study. The study will be completed in May.
The MoU was signed by KSIDC Managing Director Tom Jose and the company Vice-President Tae Kwang Kang in the presence of Industries Minister P.K. Kunhalikutty here on Wednesday evening.
Location
Kunhalikutty told reporters that it has been proposed to set up the facility at the United Electricals Ltd premises in Kollam.
A pre-feasibility study will be carried out to establish the techno-economic viability of the project. After that the joint venture will prepare a detailed project report.
It will also prepare a marketing plan for the project. KSIDC will assist to tie-up land, power and other infrastructural support.
It has been proposed to manufacture solar cells and modules of 6-inch dimension and 20 per cent efficiency. The annual capacity in the first phase will be about 100 MW.
The cost of the project is estimated at Rs 500 crore. KSIDC has already engaged the Centre for Management Development for conducting the pre-feasibility study. The study will be completed in May.
DSK Motowheels picks land near Pune for assembly line
Chennai: Super-bike retailer DSK Motowheels is planning a new manufacturing facility near Pune.
The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the Rs 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months, said Shirish Kulkarni, Managing Director, at the launch of the company’s 25 {+t} {+h} retail showroom in the country.
Pune-based DSK Motowheels, part of the diversified Rs 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India.
DSK acquired the super-bike business from Garware Motors in June last year. Since then, it has sold 1,200 bikes, clocking Rs 42 crore. DSK also acquired Garware’s assembling facility in Wai near Pune. This facility assembles around 250 bikes a month (10 bikes in a shift).
After the Shalgaon facility begins operations, DSK plans to convert the Wai facility into a warehouse. The new facility is expected to assemble 18 bikes a shift. Exports could be looked into in the future.
At present, most components are imported from South Korea, through S&T Motors, which owns the Hyosung brand. Over a period of time, DSK expects to get into full-fledged manufacturing and sourcing components locally.
Whether the Korean company S&T Motors will look at investing in the Indian venture, Kulkarni said this is unlikely to happen now.
The Hyosung range in India includes sports and cruiser bikes in the 250-700 cc range, priced Rs 2.8 -Rs 5.8 lakh. DSK is looking at introducing commuter bikes in the 125-150 cc range next year or in 2015.
Super-bikes are high-performance motorcycles used for adventure riding, not daily commuting. This segment is growing at 25 per cent year-on-year. The major players are Harley-Davidson, Honda and Yamaha.
The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the Rs 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months, said Shirish Kulkarni, Managing Director, at the launch of the company’s 25 {+t} {+h} retail showroom in the country.
Pune-based DSK Motowheels, part of the diversified Rs 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India.
DSK acquired the super-bike business from Garware Motors in June last year. Since then, it has sold 1,200 bikes, clocking Rs 42 crore. DSK also acquired Garware’s assembling facility in Wai near Pune. This facility assembles around 250 bikes a month (10 bikes in a shift).
After the Shalgaon facility begins operations, DSK plans to convert the Wai facility into a warehouse. The new facility is expected to assemble 18 bikes a shift. Exports could be looked into in the future.
At present, most components are imported from South Korea, through S&T Motors, which owns the Hyosung brand. Over a period of time, DSK expects to get into full-fledged manufacturing and sourcing components locally.
Whether the Korean company S&T Motors will look at investing in the Indian venture, Kulkarni said this is unlikely to happen now.
The Hyosung range in India includes sports and cruiser bikes in the 250-700 cc range, priced Rs 2.8 -Rs 5.8 lakh. DSK is looking at introducing commuter bikes in the 125-150 cc range next year or in 2015.
Super-bikes are high-performance motorcycles used for adventure riding, not daily commuting. This segment is growing at 25 per cent year-on-year. The major players are Harley-Davidson, Honda and Yamaha.
Luxembourg tool maker to make Bengal an export hub
Kolkata: Luxembourg-headquartered cutting tool maker CERATIZIT S.A. plans to make its second plant in Bengal an export hub for other Asian markets. It currently has a local arm – CERATIZIT India Pvt Ltd (a 95 per cent subsidiary), which operates its first plant in South Kolkata. The new plant is located at Uluberia, nearly 40 km west of Kolkata and will cost around Rs 100 crore. The company said that the unit would export 40 per cent of its products to China and other Asian countries.
“Once this unit becomes fully operational, we will export to our sister firms in China and other countries such as Indonesia, Singapore and Malaysia. The plants in India and US could be export hubs for some of our products,” Thierry Wolter, Member of the Executive Board of CERATIZIT S.A., told reporters. The company’s products are primarily meant for the automotive, aerospace and transport sectors.
“Once this unit becomes fully operational, we will export to our sister firms in China and other countries such as Indonesia, Singapore and Malaysia. The plants in India and US could be export hubs for some of our products,” Thierry Wolter, Member of the Executive Board of CERATIZIT S.A., told reporters. The company’s products are primarily meant for the automotive, aerospace and transport sectors.
India enhances bilateral traffic rights with Abu Dhabi
New Delhi: Brushing aside opposition from state-owned Air India, other domestic carriers and private airports, India today enhanced traffic rights for Abu Dhabi to 50,000 seats a week, against the current 13,000 seats. The expansion in bilaterals would virtually put Etihad Airways in the same league as Dubai-based Emirates, which is entitled to about 54,000 seats a week.
Today, the Naresh Goyal-promoted Jet Airways sealed a deal with Abu Dhabi-based Etihad Airways. Under the deal, Etihad would acquire a 24 per cent stake in Jet for Rs 2,054 crore ($379 million).
A press release issued by the civil aviation ministry today said, “After present negotiations, both sides have agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of three years — 11,000 seats per week in 2013, 12,800 seats a week up to the winter schedule for 2014 and 12,870 seats a week up to the winter schedule for 2015.”
Opposition to enhanced bilateral traffic rights wasn’t restricted to aviation circles. In a meeting of an inter-ministerial group, the finance ministry had expressed reservations, saying such a move would take away Indian air traffic and harm not just airports, but also airlines, especially Air India. It added the move would also cannibalise the traffic share of Indian airlines by flying passengers to various parts of the world through its hub airport in Abu Dhabi, as was the case with Emirates.
Last week, at a meeting of the parliamentary standing committee on tourism, transport and culture, headed by Sitaram Yechury, Members of Parliament (MPs) from various political parties voiced concern over Abu Dhabi getting increased access to India through its proposed equity participation with Jet Airways. Trinamool Congress MP Dinesh Trivedi wrote a letter to the prime minister, seeking immediate intervention to suspend talks of increasing bilateral flying rights between India and Abu Dhabi.
Today, the Naresh Goyal-promoted Jet Airways sealed a deal with Abu Dhabi-based Etihad Airways. Under the deal, Etihad would acquire a 24 per cent stake in Jet for Rs 2,054 crore ($379 million).
A press release issued by the civil aviation ministry today said, “After present negotiations, both sides have agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of three years — 11,000 seats per week in 2013, 12,800 seats a week up to the winter schedule for 2014 and 12,870 seats a week up to the winter schedule for 2015.”
Opposition to enhanced bilateral traffic rights wasn’t restricted to aviation circles. In a meeting of an inter-ministerial group, the finance ministry had expressed reservations, saying such a move would take away Indian air traffic and harm not just airports, but also airlines, especially Air India. It added the move would also cannibalise the traffic share of Indian airlines by flying passengers to various parts of the world through its hub airport in Abu Dhabi, as was the case with Emirates.
Last week, at a meeting of the parliamentary standing committee on tourism, transport and culture, headed by Sitaram Yechury, Members of Parliament (MPs) from various political parties voiced concern over Abu Dhabi getting increased access to India through its proposed equity participation with Jet Airways. Trinamool Congress MP Dinesh Trivedi wrote a letter to the prime minister, seeking immediate intervention to suspend talks of increasing bilateral flying rights between India and Abu Dhabi.
Thursday, April 25, 2013
Reliance Jio inks pact with Bharti for cable network
New Delhi: Bharti Airtel will share part of its submarine cable network with Reliance Industries' telecom arm, a rare partnership between two firms not known for their camaraderie.
The country's largest telco will provide Reliance Jio Infocomm data capacity on its undersea cable that links India and Singapore, enabling the Mukesh Ambani-owned venture to connect its proposed 4G network to the Asia-Pacific region.
The old rivals also held out the intriguing possibility of greater cooperation in the future. "Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience," said a statement issued by both the companies, without specifying what these areas could be.
Two executives aware of the development said Bharti and Reliance were in discussions for an optic fibre-sharing deal that could be similar to the recent agreement between Reliance Jio Infocomm and Anil Ambani's Reliance Communications. Both Bharti and RIL declined comment on this.
Tuesday's pact marks a break in a narrative of rivalry between the two companies dating back to the early 2000s.
Analytsts welcome connectivity agreement
In the early 2000s, Bharti and Reliance Industries fought a lengthy battle over allowing CDMA operators to offer full-fledged mobile services.
This was followed by a period of truce as the ownership of RIL's telecom business was transferred to Anil Ambani as part of the family settlement of 2005.
But RIL's ambitious re-entry into the telecom sector has reignited the old rivalry, with analysts anticipating a dramatic confrontation both within and outside the marketplace between the country's largest private company and the largest telecom company.
The two groups also compete against each other in retail. RIL's retail business crossed the Rs 10,000-crore revenue mark in 2012-13. While Bharti is a much smaller player in this business, the group is expected to grow it aggressively along with partner Walmart, now that the government has allowed foreign investments in the sector.
Analysts were quick to welcome the data connectivity agreement between the two. "Such deals are good from the industry point of view as they result in sharing of infrastructure, which is costly to build. It is a part of industry consolidation and could be a win-win for all, including the ultimate consumer," said Hemant Joshi, partner, Deloitte Haskins & Sells.
Executives close to Bharti said the company had a history of sharing infrastructure with competitors. They point out the company had taken the initiative to merge its towers with those of Vodafone and Idea to form Indus Towers.
The country's largest telco will provide Reliance Jio Infocomm data capacity on its undersea cable that links India and Singapore, enabling the Mukesh Ambani-owned venture to connect its proposed 4G network to the Asia-Pacific region.
The old rivals also held out the intriguing possibility of greater cooperation in the future. "Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience," said a statement issued by both the companies, without specifying what these areas could be.
Two executives aware of the development said Bharti and Reliance were in discussions for an optic fibre-sharing deal that could be similar to the recent agreement between Reliance Jio Infocomm and Anil Ambani's Reliance Communications. Both Bharti and RIL declined comment on this.
Tuesday's pact marks a break in a narrative of rivalry between the two companies dating back to the early 2000s.
Analytsts welcome connectivity agreement
In the early 2000s, Bharti and Reliance Industries fought a lengthy battle over allowing CDMA operators to offer full-fledged mobile services.
This was followed by a period of truce as the ownership of RIL's telecom business was transferred to Anil Ambani as part of the family settlement of 2005.
But RIL's ambitious re-entry into the telecom sector has reignited the old rivalry, with analysts anticipating a dramatic confrontation both within and outside the marketplace between the country's largest private company and the largest telecom company.
The two groups also compete against each other in retail. RIL's retail business crossed the Rs 10,000-crore revenue mark in 2012-13. While Bharti is a much smaller player in this business, the group is expected to grow it aggressively along with partner Walmart, now that the government has allowed foreign investments in the sector.
Analysts were quick to welcome the data connectivity agreement between the two. "Such deals are good from the industry point of view as they result in sharing of infrastructure, which is costly to build. It is a part of industry consolidation and could be a win-win for all, including the ultimate consumer," said Hemant Joshi, partner, Deloitte Haskins & Sells.
Executives close to Bharti said the company had a history of sharing infrastructure with competitors. They point out the company had taken the initiative to merge its towers with those of Vodafone and Idea to form Indus Towers.
RBI eases norms for PSU investment in oil sector overseas
Mumbai: The Reserve Bank of India on Tuesday said Navratna Public Sector Undertakings — ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) — will be allowed to make overseas investments in the incorporated Joint Ventures/Wholly Owned Subsidiaries in the oil sector.
These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, duly approved by the Government of India, will be without any limits under the automatic route, the RBI said in a notification.
So far, OVL and OIL were allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas), which are duly approved by the Government of India, without any limits under the automatic route.
Separate legal entity
An incorporated organisation is a separate legal entity from the people owning it. The board members do not normally have personal financial responsibility for contracts and debts incurred.
In the case of an unincorporated organisation, the owners/partners are personally liable for any debts or claims against the organisation.
These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, duly approved by the Government of India, will be without any limits under the automatic route, the RBI said in a notification.
So far, OVL and OIL were allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas), which are duly approved by the Government of India, without any limits under the automatic route.
Separate legal entity
An incorporated organisation is a separate legal entity from the people owning it. The board members do not normally have personal financial responsibility for contracts and debts incurred.
In the case of an unincorporated organisation, the owners/partners are personally liable for any debts or claims against the organisation.
Integrated textile parks to generate 10 lakh jobs
New Delhi: The 61 textile parks approved under the Scheme for Integrated Textile Parks (SITP) are expected to generate over 10 lakh jobs. These parks will have total estimated investment of Rs 27,562 crore.
Commerce, Industry and Textiles Minister Anand Sharma launched 21 new Textile Parks on Tuesday. With these the total number parks go up to 61.
This scheme has been instrumental in development of wide range of models for greenfield clusters, including 1,000-acre FDI driven integrated clusters, 100-acre powerloom clusters and 20-acre handloom clusters.
Of the 61 parks sanctioned – 40 projects were started in the 11th Plan and another 21 projects are to be implemented in the 12th Plan.
Out of the 40 parks sanctioned earlier, 25 are operational. The others are expected to be completed during this financial year.
State break-up
Out of 21 new parks, six are in Maharashtra, four in Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat, Himachal Pradesh and Jammu & Kashmir.
In this year’s Budget speech, the Finance Minister announced an additional amount of up to Rs 10 crore per park for setting up apparel manufacturing units for the projects under the SITP.
Commerce, Industry and Textiles Minister Anand Sharma launched 21 new Textile Parks on Tuesday. With these the total number parks go up to 61.
This scheme has been instrumental in development of wide range of models for greenfield clusters, including 1,000-acre FDI driven integrated clusters, 100-acre powerloom clusters and 20-acre handloom clusters.
Of the 61 parks sanctioned – 40 projects were started in the 11th Plan and another 21 projects are to be implemented in the 12th Plan.
Out of the 40 parks sanctioned earlier, 25 are operational. The others are expected to be completed during this financial year.
State break-up
Out of 21 new parks, six are in Maharashtra, four in Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat, Himachal Pradesh and Jammu & Kashmir.
In this year’s Budget speech, the Finance Minister announced an additional amount of up to Rs 10 crore per park for setting up apparel manufacturing units for the projects under the SITP.
Indian economy is expected to grow at 6.4 per cent during 2013-14: PMEAC
New Delhi: The improvement in performance of agriculture and manufacturing sectors is expected to boost the economic growth rate to 6.4 per cent in 2013-14 from 5 per cent during 2012-13, according to Prime Minister’s Economic Advisory Panel.
"Economy will grow at higher rate from now. We projected growth rate of 6.4% in the current fiscal", said Mr C Rangarajan, Chairman, Prime Minister's Economic Advisory Council (PMEAC), during the release the Economic Review for 2012-13.
The improvement in the growth rate in the current fiscal, will be on the back of better performance of agriculture, industry and services sectors, he added.
The agriculture sector is expected to grow at 3.5 per cent in 2013-14 as compared to 1.8 per cent during previous fiscal. The industry and services sectors are expected to grow at 4.9 per cent (3.1 per cent in 2012-13) and 7.7 per cent (6.6 per cent in 2012-13) respectively.
The policy and administrative actions such as the recently constituted Cabinet Committee on Investment can help overcome obstacles in the speedy execution of projects. The existing rates of investment should enable us to grow at 7.5 per cent to 8 per cent over the short term, a return to higher levels of savings and investment can take India back to the very high levels of growth, said Mr Rangarajan.
If India grows at 8 per cent-9 per cent per annum, "we will graduate to the level of a middle income country by 2025," he added.
The PMEAC has projected higher inbound foreign direct investment (FDI) at US$ 36 billion during 2013-14. The net FDI inflow in 2012-13 was US$ 18 billion (US$ 26 billion inbound and US$ 8 billion outbound). Outbound FDI is also expected to increase, resulting in net FDI inflow of US$ 24 billion in 2013-14, highlighted the PMEAC.
The action taken by the Government of India to speed up project clearances since September would be visible in the current fiscal, said Mr Rangarajan.
The Government of India will have to maintain an attractive return in financial assets for bringing down the demand of gold. The price and subsidy reforms in petroleum products is also needed to be completed to control oil import bill, he added.
"Non-food manufacturing inflation remains around the comfort zone. As inflation comes down, it will create more space for monetary policy to support growth," he said.
"Economy will grow at higher rate from now. We projected growth rate of 6.4% in the current fiscal", said Mr C Rangarajan, Chairman, Prime Minister's Economic Advisory Council (PMEAC), during the release the Economic Review for 2012-13.
The improvement in the growth rate in the current fiscal, will be on the back of better performance of agriculture, industry and services sectors, he added.
The agriculture sector is expected to grow at 3.5 per cent in 2013-14 as compared to 1.8 per cent during previous fiscal. The industry and services sectors are expected to grow at 4.9 per cent (3.1 per cent in 2012-13) and 7.7 per cent (6.6 per cent in 2012-13) respectively.
The policy and administrative actions such as the recently constituted Cabinet Committee on Investment can help overcome obstacles in the speedy execution of projects. The existing rates of investment should enable us to grow at 7.5 per cent to 8 per cent over the short term, a return to higher levels of savings and investment can take India back to the very high levels of growth, said Mr Rangarajan.
If India grows at 8 per cent-9 per cent per annum, "we will graduate to the level of a middle income country by 2025," he added.
The PMEAC has projected higher inbound foreign direct investment (FDI) at US$ 36 billion during 2013-14. The net FDI inflow in 2012-13 was US$ 18 billion (US$ 26 billion inbound and US$ 8 billion outbound). Outbound FDI is also expected to increase, resulting in net FDI inflow of US$ 24 billion in 2013-14, highlighted the PMEAC.
The action taken by the Government of India to speed up project clearances since September would be visible in the current fiscal, said Mr Rangarajan.
The Government of India will have to maintain an attractive return in financial assets for bringing down the demand of gold. The price and subsidy reforms in petroleum products is also needed to be completed to control oil import bill, he added.
"Non-food manufacturing inflation remains around the comfort zone. As inflation comes down, it will create more space for monetary policy to support growth," he said.
India, Norway to set up think-tank on biodiversity
Chennai: The National Biodiversity Authority and Norway Government’s Division of Nature Management will set up a Centre for Biodiversity Policy and Law.
Addressing media persons after signing the agreement that provides for the Norwegian Government’s support to setting up the Centre here in Chennai, the Biodiversity Authority’s Chairman P. Balakrishna, said the Centre is a pioneering initiative in addressing biodiversity related policies and issues.
The Biodiversity Authority set up under a Central law, the Biological Diversity Act 2002, for conservation and management of the diverse forms of life and to act as a regulator to prevent over exploitation, will work with its Norwegian counterpart, the Division of Nature Management, to shape policies and laws to manage global biodiversity.
Biodiversity is key to life and livelihood, whether for healthcare, agriculture, food or any other industry the diverse life forms are a valuable resource.
A fungus was the source of the first antibiotic to be discovered, penicillin; high yielding, disease resistant crop varieties, wood for making paper, medicines from plants… all of these benefit humans thanks to the diverse life forms in nature.
India is in the process of revising its National Biodiversity Action Plan to make it more responsive to present day needs. The action plan is expected to be ready by the middle of next year.
The Centre will work towards bringing biodiversity issues to the mainstream of debate and informed decision making, Balakrishna said.
Addressing media persons after signing the agreement that provides for the Norwegian Government’s support to setting up the Centre here in Chennai, the Biodiversity Authority’s Chairman P. Balakrishna, said the Centre is a pioneering initiative in addressing biodiversity related policies and issues.
The Biodiversity Authority set up under a Central law, the Biological Diversity Act 2002, for conservation and management of the diverse forms of life and to act as a regulator to prevent over exploitation, will work with its Norwegian counterpart, the Division of Nature Management, to shape policies and laws to manage global biodiversity.
Biodiversity is key to life and livelihood, whether for healthcare, agriculture, food or any other industry the diverse life forms are a valuable resource.
A fungus was the source of the first antibiotic to be discovered, penicillin; high yielding, disease resistant crop varieties, wood for making paper, medicines from plants… all of these benefit humans thanks to the diverse life forms in nature.
India is in the process of revising its National Biodiversity Action Plan to make it more responsive to present day needs. The action plan is expected to be ready by the middle of next year.
The Centre will work towards bringing biodiversity issues to the mainstream of debate and informed decision making, Balakrishna said.
Monday, April 22, 2013
KidZania Mumbai gears up for soft launch
Mumbai: Mexican edutainment theme park brand KidZania is set to see the soft launch of its property here in June. Its Indian franchisee, ImagiNation Edutainment India, in which Bollywood actor Shah Rukh Khan owns 26 per cent stake, has entered into a partnership with Birla Sun Life Insurance for an employment centre at the park.
KidZania offers a variety of activities to suit multiple interests of children. The facility has various establishments with specific role-playing activities that kids can take up as jobs. Viraj Jit Singh, chief marketing officer of ImagiNation Edutainment told Business Standard the construction of the property, to come up in the R City Mall in Mumbai, was in the last stages. It would be soft-launched in mid-June. “We are in the final stage before the launch; recruitments are on and so are talks with advertisers for partnerships.”
Birla Sun Life Insurance is the company’s fourth partner. YES Bank, Central and Big Bazaar have already come on board. The Birla Sun Life Insurance employment centre establishment would provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. Supervisors would help children identify their aptitude and make their first résumé, based on their interests.
Ajay Kakar, chief marketing officer (financial services), Aditya Birla Group, said, “At Birla Sun Life Insurance, we recognise the fact that today, children have many career options to choose from and so, it becomes difficult for them to recognise their real passion. KidZania gives the children an opportunity to explore and experience many career options in a fun way. We support this platform because it helps children and parents recognise their real passion and talent.”
Singh said ImagiNation Edutainment was looking at 10-15 partners; this would rise to 40 in 12-15 months. “We have 60 establishments, which provide about 75 activities. Right now, we are looking at 10-15 partners and once the concept picks up, more would join,” he said.
Children would be handed a report card at the end of their experience at KidZania and this would mention the activities they were involved in. Through the résumé and the report card, the Birla Sun Life Insurance employment centre would act as a facilitator for parents to discover and support their children.
“As a brand, we are in a space to win hearts, and what better way to win hearts of parents than to bring a smile on their kid’s face,” said Kakar. Birla Sun Life Insurance also has a microsite designed to help those looking for information related to any career avenue across diverse fields of interest.
KidZania Mumbai, being built at a cost of Rs 100 crore, expects to recover 30-35 per cent of the cost from partners and 60-70 per cent from tickets.
KidZania offers a variety of activities to suit multiple interests of children. The facility has various establishments with specific role-playing activities that kids can take up as jobs. Viraj Jit Singh, chief marketing officer of ImagiNation Edutainment told Business Standard the construction of the property, to come up in the R City Mall in Mumbai, was in the last stages. It would be soft-launched in mid-June. “We are in the final stage before the launch; recruitments are on and so are talks with advertisers for partnerships.”
Birla Sun Life Insurance is the company’s fourth partner. YES Bank, Central and Big Bazaar have already come on board. The Birla Sun Life Insurance employment centre establishment would provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. Supervisors would help children identify their aptitude and make their first résumé, based on their interests.
Ajay Kakar, chief marketing officer (financial services), Aditya Birla Group, said, “At Birla Sun Life Insurance, we recognise the fact that today, children have many career options to choose from and so, it becomes difficult for them to recognise their real passion. KidZania gives the children an opportunity to explore and experience many career options in a fun way. We support this platform because it helps children and parents recognise their real passion and talent.”
Singh said ImagiNation Edutainment was looking at 10-15 partners; this would rise to 40 in 12-15 months. “We have 60 establishments, which provide about 75 activities. Right now, we are looking at 10-15 partners and once the concept picks up, more would join,” he said.
Children would be handed a report card at the end of their experience at KidZania and this would mention the activities they were involved in. Through the résumé and the report card, the Birla Sun Life Insurance employment centre would act as a facilitator for parents to discover and support their children.
“As a brand, we are in a space to win hearts, and what better way to win hearts of parents than to bring a smile on their kid’s face,” said Kakar. Birla Sun Life Insurance also has a microsite designed to help those looking for information related to any career avenue across diverse fields of interest.
KidZania Mumbai, being built at a cost of Rs 100 crore, expects to recover 30-35 per cent of the cost from partners and 60-70 per cent from tickets.
KidZania Mumbai gears up for soft launch
Mumbai: Mexican edutainment theme park brand KidZania is set to see the soft launch of its property here in June. Its Indian franchisee, ImagiNation Edutainment India, in which Bollywood actor Shah Rukh Khan owns 26 per cent stake, has entered into a partnership with Birla Sun Life Insurance for an employment centre at the park.
KidZania offers a variety of activities to suit multiple interests of children. The facility has various establishments with specific role-playing activities that kids can take up as jobs. Viraj Jit Singh, chief marketing officer of ImagiNation Edutainment told Business Standard the construction of the property, to come up in the R City Mall in Mumbai, was in the last stages. It would be soft-launched in mid-June. “We are in the final stage before the launch; recruitments are on and so are talks with advertisers for partnerships.”
Birla Sun Life Insurance is the company’s fourth partner. YES Bank, Central and Big Bazaar have already come on board. The Birla Sun Life Insurance employment centre establishment would provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. Supervisors would help children identify their aptitude and make their first résumé, based on their interests.
Ajay Kakar, chief marketing officer (financial services), Aditya Birla Group, said, “At Birla Sun Life Insurance, we recognise the fact that today, children have many career options to choose from and so, it becomes difficult for them to recognise their real passion. KidZania gives the children an opportunity to explore and experience many career options in a fun way. We support this platform because it helps children and parents recognise their real passion and talent.”
Singh said ImagiNation Edutainment was looking at 10-15 partners; this would rise to 40 in 12-15 months. “We have 60 establishments, which provide about 75 activities. Right now, we are looking at 10-15 partners and once the concept picks up, more would join,” he said.
Children would be handed a report card at the end of their experience at KidZania and this would mention the activities they were involved in. Through the résumé and the report card, the Birla Sun Life Insurance employment centre would act as a facilitator for parents to discover and support their children.
“As a brand, we are in a space to win hearts, and what better way to win hearts of parents than to bring a smile on their kid’s face,” said Kakar. Birla Sun Life Insurance also has a microsite designed to help those looking for information related to any career avenue across diverse fields of interest.
KidZania Mumbai, being built at a cost of Rs 100 crore, expects to recover 30-35 per cent of the cost from partners and 60-70 per cent from tickets.
KidZania offers a variety of activities to suit multiple interests of children. The facility has various establishments with specific role-playing activities that kids can take up as jobs. Viraj Jit Singh, chief marketing officer of ImagiNation Edutainment told Business Standard the construction of the property, to come up in the R City Mall in Mumbai, was in the last stages. It would be soft-launched in mid-June. “We are in the final stage before the launch; recruitments are on and so are talks with advertisers for partnerships.”
Birla Sun Life Insurance is the company’s fourth partner. YES Bank, Central and Big Bazaar have already come on board. The Birla Sun Life Insurance employment centre establishment would provide career development guidance and assistance to kids looking for role-playing opportunities at KidZania. Supervisors would help children identify their aptitude and make their first résumé, based on their interests.
Ajay Kakar, chief marketing officer (financial services), Aditya Birla Group, said, “At Birla Sun Life Insurance, we recognise the fact that today, children have many career options to choose from and so, it becomes difficult for them to recognise their real passion. KidZania gives the children an opportunity to explore and experience many career options in a fun way. We support this platform because it helps children and parents recognise their real passion and talent.”
Singh said ImagiNation Edutainment was looking at 10-15 partners; this would rise to 40 in 12-15 months. “We have 60 establishments, which provide about 75 activities. Right now, we are looking at 10-15 partners and once the concept picks up, more would join,” he said.
Children would be handed a report card at the end of their experience at KidZania and this would mention the activities they were involved in. Through the résumé and the report card, the Birla Sun Life Insurance employment centre would act as a facilitator for parents to discover and support their children.
“As a brand, we are in a space to win hearts, and what better way to win hearts of parents than to bring a smile on their kid’s face,” said Kakar. Birla Sun Life Insurance also has a microsite designed to help those looking for information related to any career avenue across diverse fields of interest.
KidZania Mumbai, being built at a cost of Rs 100 crore, expects to recover 30-35 per cent of the cost from partners and 60-70 per cent from tickets.
Adventz Group to invest Rs 4,000 cr in urea plant in Gulf
Kolkata: After acquiring a 10 per cent stake in UB Group's Mangalore Chemicals & Fertilizers recently, Adventz Group chairman Saroj Poddar is now set to invest Rs 4,000 crore in Gulf region's Ras al Khaimah for a urea plant.
The pre feasibility study was going on and a detailed project report (DPR) was underway, Poddar said.
“Once the DPR is final the group will approach banks for financing. We already have the land,” he said.
The plant is expected to have an annual capacity of around 1.5 million tonne, but it will be finalized after the final DPR is ready.The new Fertilizer Policy 2012 has also several enabling provisions to encourage investment in the urea fertilizer arena.
Poddar, who is at the helm of the $ 3 billion Adventz Group, said the agro chemical and fertiliser business contributed the major chunk of its total revenue and this vertical would remain the priority in coming years.
“Over 75 per cent of our revenues come from this business and this will be critical to our growth as a group so we will allot most importance in this business,” he said. Zuari Industries is the flagship company of the group which looks after the fertiliser business. Poddar pointed out that Rs 100 crore had been invested in the Goa unit while Rs 500 crore has been pumped into the Paradip outfit recently.
Owing to volatile prices of raw material in the global market the fertiliser industry had seen poor growth in the last fiscal. “Volatile prices, weak rupee and such issues had made a strong impact on the industry. We too were not out of this, but now prices have stabilized and hopefully this year would be better than last one,” he said.
The group also has other business verticals like infrastructure, services and emerging lifestyle.
Texmaco Rail & Engineering is another company, according to Poddar, which will play a significant role in the companies growth map. The company has started work in Sodepur unit and around Rs 100 crore have been invested already.
“We are the biggest private rail wagon builder and have invested in excess of Rs 100 crore in the Sodepur property. First Rail coaches (in middle of current financial year) and then metro coaches will be built there,” he added.
Ruling out reports of a stake sale in the wagon building business by the promoters, Poddar said, “It is true that railways order inflow has been dry for quite some time but we are committed to this business.”
Speaking of his proposed food park project in West Bengal the chairman said the ball was now in the state government's court and as company he had done everything that was required. “It has been there for quite sometime now. I have met everybody but I am yet to get any response from them. The project is still alive and we will move forward once state gives any further direction,” added Poddar.
The pre feasibility study was going on and a detailed project report (DPR) was underway, Poddar said.
“Once the DPR is final the group will approach banks for financing. We already have the land,” he said.
The plant is expected to have an annual capacity of around 1.5 million tonne, but it will be finalized after the final DPR is ready.The new Fertilizer Policy 2012 has also several enabling provisions to encourage investment in the urea fertilizer arena.
Poddar, who is at the helm of the $ 3 billion Adventz Group, said the agro chemical and fertiliser business contributed the major chunk of its total revenue and this vertical would remain the priority in coming years.
“Over 75 per cent of our revenues come from this business and this will be critical to our growth as a group so we will allot most importance in this business,” he said. Zuari Industries is the flagship company of the group which looks after the fertiliser business. Poddar pointed out that Rs 100 crore had been invested in the Goa unit while Rs 500 crore has been pumped into the Paradip outfit recently.
Owing to volatile prices of raw material in the global market the fertiliser industry had seen poor growth in the last fiscal. “Volatile prices, weak rupee and such issues had made a strong impact on the industry. We too were not out of this, but now prices have stabilized and hopefully this year would be better than last one,” he said.
The group also has other business verticals like infrastructure, services and emerging lifestyle.
Texmaco Rail & Engineering is another company, according to Poddar, which will play a significant role in the companies growth map. The company has started work in Sodepur unit and around Rs 100 crore have been invested already.
“We are the biggest private rail wagon builder and have invested in excess of Rs 100 crore in the Sodepur property. First Rail coaches (in middle of current financial year) and then metro coaches will be built there,” he added.
Ruling out reports of a stake sale in the wagon building business by the promoters, Poddar said, “It is true that railways order inflow has been dry for quite some time but we are committed to this business.”
Speaking of his proposed food park project in West Bengal the chairman said the ball was now in the state government's court and as company he had done everything that was required. “It has been there for quite sometime now. I have met everybody but I am yet to get any response from them. The project is still alive and we will move forward once state gives any further direction,” added Poddar.
Apollo Tyres sets up unit in Thailand to tap Asean markets
Kolkata: After Europe and West Asia, Apollo Tyres is expanding its market reach in Asean (Association for South East Asian Nations). The Rs 12,000-crore group will open its outfit in Bangkok on May 2 to spearhead sales in the free trade region.
The trade block includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
The company is already exporting tyres from India to Indonesia, Thailand and Philippines. However, due to their voluminous nature, exports are not considered a viable option for tyre sector to gain market share overseas. So Apollo is nurturing a plan to set up manufacturing base in the region. “We have hired a team of 20 under the Bangkok-based subsidiary. We may follow it up with a manufacturing base in the region after two years (depending on viability),” Satish Sharma, Chief, India operations, told Business Line.
While the subsidiary will primarily explore market opportunities in the auto-hub in Thailand, Apollo is also bullish on demand for cross ply (BIAS) truck tyres, especially off-the-road tyres (OTR), used in Indonesia’s booming coal mining industry.
“A senior technical person has been hired to understand the cross-ply market potential in Indonesia,” Sharma said.
Foray in Australia
The company is making steady progress in establishing its distribution footprint in theAustralian market.
“We have already appointed a CEO and a couple of professionals to develop the Australian business, directly under the Indian operations,” the official said.
The job is not easy but, Apollo is confident that its European connections will be of major help in gaining confidence of Australian buyers.
Having acquired the Netherlands-based Vredestein in 2009, the company has launched its home grown brands in the European market. As a follow-up initiative, Apollo had set up its global research and development centre in Europe.
Fresh launches in India
As a result of this, Apollo’s fresh launches, even in the Indian market, are now developed and tested abroad.
“We will launch three passenger vehicle tyres in standard (Amazer 4G), high performance (Apollo Alnac 4G) and ultra-high performance (Aspire 4G) categories for the Indian market, next week. And, two of the products — targeting sedans and luxury cars — are already selling in the European markets,” Sharma said.
The trade block includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
The company is already exporting tyres from India to Indonesia, Thailand and Philippines. However, due to their voluminous nature, exports are not considered a viable option for tyre sector to gain market share overseas. So Apollo is nurturing a plan to set up manufacturing base in the region. “We have hired a team of 20 under the Bangkok-based subsidiary. We may follow it up with a manufacturing base in the region after two years (depending on viability),” Satish Sharma, Chief, India operations, told Business Line.
While the subsidiary will primarily explore market opportunities in the auto-hub in Thailand, Apollo is also bullish on demand for cross ply (BIAS) truck tyres, especially off-the-road tyres (OTR), used in Indonesia’s booming coal mining industry.
“A senior technical person has been hired to understand the cross-ply market potential in Indonesia,” Sharma said.
Foray in Australia
The company is making steady progress in establishing its distribution footprint in theAustralian market.
“We have already appointed a CEO and a couple of professionals to develop the Australian business, directly under the Indian operations,” the official said.
The job is not easy but, Apollo is confident that its European connections will be of major help in gaining confidence of Australian buyers.
Having acquired the Netherlands-based Vredestein in 2009, the company has launched its home grown brands in the European market. As a follow-up initiative, Apollo had set up its global research and development centre in Europe.
Fresh launches in India
As a result of this, Apollo’s fresh launches, even in the Indian market, are now developed and tested abroad.
“We will launch three passenger vehicle tyres in standard (Amazer 4G), high performance (Apollo Alnac 4G) and ultra-high performance (Aspire 4G) categories for the Indian market, next week. And, two of the products — targeting sedans and luxury cars — are already selling in the European markets,” Sharma said.
Holland extends help to produce crop protection solutions
Bangalore: Koppert, a Dutch company specialising in biological crop protection, has partnered with Namdhari Fresh to develop crop protection suitable to Indian conditions.
The main aim of the partnership is to meet the global standards on pesticide residue and minimise the impact of pesticides on people. To achieve this, a demonstration plot on Namdhari’s land in Bidadi near Bangalore has been set up to develop crop protection solutions under protected (polyhouse) conditions.
“The project is being supported by Dutch government through the public-private partnership through its FoodtechHolland,” Arie Veldhuizen, Agriculture Attaché, Royal Dutch Embassy, told Business Line.
“The relevance of this project is linked to India promoting integrated pest management and greenhouse cultivation to improve productivity and quality of the fresh produce, thereby to drive higher export volumes,” he added.
Gets authorisation
As part of the project, Koppert India has been granted authorisation for five biological beneficial to combat the most common pests, including thrips, spider mite and aphids, in vegetable and ornamental crops.
“Adopting biological crop protection has several benefits.
“It is a small market at present but it is growing. This system has social benefit, which is more than commercial,” explained Uday Singh, Managing Director, Namdhari group.
Koppert is experimenting on Indian soil the application of Spical (Neoseiulus californicus), Spidex (Phytoseiulus persimilis), Swirski-Mite (Amblyseius swirskii), Aphipar (Aphidius colemani), and Thripor-L (Orius laevigatus).
‘Huge demand’
“We see there is a huge demand for natural and biological solutions in India and the market in which the majority of the population is vegetarian,” said Robert Pathuis Director, Koppert.
“We are exploring a number of States around Karnataka — such as Tamil Nadu, Kerala and Maharashtra — to offer biological crop protection systems,” he added.
According to Wouter van Vliet, Managing Director, Larive, the agency assisting companies with doing business in emerging markets, “This initiative is a follow-up on the Memorandum of Understanding signed by the Indo-Dutch Joint Agriculture working group between India and the Netherlands signed on May 24, 2012.”
“The MoU addresses knowledge transfer in horticultural practice and the project aims to contribute directly to India’s export of fresh produce and polyhouse cultivation,” he added.
The main aim of the partnership is to meet the global standards on pesticide residue and minimise the impact of pesticides on people. To achieve this, a demonstration plot on Namdhari’s land in Bidadi near Bangalore has been set up to develop crop protection solutions under protected (polyhouse) conditions.
“The project is being supported by Dutch government through the public-private partnership through its FoodtechHolland,” Arie Veldhuizen, Agriculture Attaché, Royal Dutch Embassy, told Business Line.
“The relevance of this project is linked to India promoting integrated pest management and greenhouse cultivation to improve productivity and quality of the fresh produce, thereby to drive higher export volumes,” he added.
Gets authorisation
As part of the project, Koppert India has been granted authorisation for five biological beneficial to combat the most common pests, including thrips, spider mite and aphids, in vegetable and ornamental crops.
“Adopting biological crop protection has several benefits.
“It is a small market at present but it is growing. This system has social benefit, which is more than commercial,” explained Uday Singh, Managing Director, Namdhari group.
Koppert is experimenting on Indian soil the application of Spical (Neoseiulus californicus), Spidex (Phytoseiulus persimilis), Swirski-Mite (Amblyseius swirskii), Aphipar (Aphidius colemani), and Thripor-L (Orius laevigatus).
‘Huge demand’
“We see there is a huge demand for natural and biological solutions in India and the market in which the majority of the population is vegetarian,” said Robert Pathuis Director, Koppert.
“We are exploring a number of States around Karnataka — such as Tamil Nadu, Kerala and Maharashtra — to offer biological crop protection systems,” he added.
According to Wouter van Vliet, Managing Director, Larive, the agency assisting companies with doing business in emerging markets, “This initiative is a follow-up on the Memorandum of Understanding signed by the Indo-Dutch Joint Agriculture working group between India and the Netherlands signed on May 24, 2012.”
“The MoU addresses knowledge transfer in horticultural practice and the project aims to contribute directly to India’s export of fresh produce and polyhouse cultivation,” he added.
New SEZ norms to help real estate and IT sector, say experts
Mumbai: The government's move to do away with the mandatory requirement of 10 hectares of minimum land area for setting up an information technology/IT-enabled services special economic zone is likely to prove a major boon for the real estate and IT sector.
On Thursday, the government announced the minimum built-up area requirements to be met by SEZ developers will be 100,000 square meters for the seven major cities, 50,000 square meters for Category B cities and only 25,000 square meters for the remaining cities.
"Some IT SEZ developers who have already met the 100,000 square meter built-up area criteria will now convert the balance land for residential use, giving the mixed-use edge while also making the formation of many more walk-to-work residential projects possible," says Ramesh Nair, Managing Director - West, Jones Lang LaSalle India.
Real estate developers will now be able to divide up their land holdings and allocate smaller parts to IT companies to construct their own IT SEZs.
With new announcements, it will now become easier to exit from SEZs given that transfer of ownership of SEZ units - including sale - has now been allowed. Moreover, Real Estate Private Equity Funds with foreign capital will now be able to do smaller deals, and this is bound to bring in more FDI into the sector, Nair says.
According to experts, with these amendments many more IT companies will be able to launch their own SEZs as against only large IT companies managing to do so due to capital required to buy minimum 25 acres.
National Association of Software and Service Companies (NASSCOM) also welcomed the annual supplement to the Foreign Trade Policy aimed at enhancing exports and easing export procedures.
Large mandatory land requirements made it difficult for small companies to take advantage of the SEZ policy. Waiving away land requirement and reducing minimum built up area will now make it feasible for IT SEZs to come up in Tier II/Tier III locations. These changes are likely to make the SEZ policy more inclusive by attracting SMEs to consider their options, NASSCOM said in a release.
"We are delighted that the government recognizes IT exports as a key growth driver for India's exports and the SEZ scheme. Removing the minimum land requirement and reducing the built up area will enable the SEZ scheme to realise its true potential," said Som Mittal, president, NASSCOM.
On Thursday, the government announced the minimum built-up area requirements to be met by SEZ developers will be 100,000 square meters for the seven major cities, 50,000 square meters for Category B cities and only 25,000 square meters for the remaining cities.
"Some IT SEZ developers who have already met the 100,000 square meter built-up area criteria will now convert the balance land for residential use, giving the mixed-use edge while also making the formation of many more walk-to-work residential projects possible," says Ramesh Nair, Managing Director - West, Jones Lang LaSalle India.
Real estate developers will now be able to divide up their land holdings and allocate smaller parts to IT companies to construct their own IT SEZs.
With new announcements, it will now become easier to exit from SEZs given that transfer of ownership of SEZ units - including sale - has now been allowed. Moreover, Real Estate Private Equity Funds with foreign capital will now be able to do smaller deals, and this is bound to bring in more FDI into the sector, Nair says.
According to experts, with these amendments many more IT companies will be able to launch their own SEZs as against only large IT companies managing to do so due to capital required to buy minimum 25 acres.
National Association of Software and Service Companies (NASSCOM) also welcomed the annual supplement to the Foreign Trade Policy aimed at enhancing exports and easing export procedures.
Large mandatory land requirements made it difficult for small companies to take advantage of the SEZ policy. Waiving away land requirement and reducing minimum built up area will now make it feasible for IT SEZs to come up in Tier II/Tier III locations. These changes are likely to make the SEZ policy more inclusive by attracting SMEs to consider their options, NASSCOM said in a release.
"We are delighted that the government recognizes IT exports as a key growth driver for India's exports and the SEZ scheme. Removing the minimum land requirement and reducing the built up area will enable the SEZ scheme to realise its true potential," said Som Mittal, president, NASSCOM.
Saturday, April 20, 2013
Orchid Chem in pact with European firm for antibiotics
Chennai: Chennai-based Orchid Chemicals and Pharmaceuticals has entered into a partnership with Europe-based Allecra Therapeutics to develop antibiotics to combat multi-drug resistant bacterial infections.Orchid will give Allecra intellectual property related to an antibiotic discovery programme.
Orchid has been engaged in pre-clinical trials of this molecule with which Allecra will carry out further trials, said a press release.
Under the terms of the agreement, Orchid will be paid $1 million up front and is eligible to receive further royalties and exit bonuses based on Allecra’s progress.
Allecra has bagged €15 million in a Series A financing round, co-led by Edmond de Rothschild Investment Partners and Forbion Capital Partners. EMBL Ventures also participated.
When the funding comes through, Orchid will receive 20 per cent stake in Allecra.
Orchid was represented by the law firm Latham and Watkins in this agreement.
Orchid’s shares closed 1.35 per cent higher on the BSE, on Thursday, at Rs 67.80.
VW sets up unit to export parts of Vento, Polo
Pune: Volkswagen India Pvt Ltd has set up a unit to manufacture and package parts of the Vento and Polo for export at its Pune plant.
Announcing the inauguration of the parts and components Business Unit, the company said it has invested around Rs 56 crore to develop it.
The company added that it will begin with export to Malaysia.
The Indian export parts will contribute to approximately 70 per cent of the car which will then be assembled for the local market at the DRB Hicom Plant.
Volkswagen India has been exporting cars from Pune since last year as fully built units to markets such as South Africa, Sri Lanka, Nepal, Bangladesh, Malaysia and the left-hand drive version of the VW Vento to West Asia.
About 215 new jobs will be created in the parts and components BU at Volkswagen and its suppliers.
“Apart from the Malaysian market, if there is a demand from any other region for parts and components, we are on the pole position to support,” said Andreas Lauenroth, Executive Director Technical, Volkswagen India.
Localisation
Currently, Volkswagen cars in India are localised to the extent of 70 per cent, and the company has plans to localise further by building engines and gear boxes, if the volumes support this.
“It will be the next logical step if the numbers grow,” said Alexander Skibbe, spokesperson for VW India.
RINL to set up Rs 1,000-cr plant in AP
Visakhapatnam: Rashtriya Ispat Nigam Ltd will set up a Rs 1,000-crore beneficiation plant at Bayyaram in Khammam district of Andhra Pradesh, as the State Government has agreed in-principle to allot 5,342 hectares of iron ore mines to the Visakhapatnam steel plant.
In a statement issued here on Thursday, RINL Chairman and Managing Director A.P Choudhary, hailed the decision of Chief Minister N. Kiran Kumar Reddy.
The State Govenment will allot iron ore mines to RINL-VSP, spread over an area of 2,500 hectares at Guduru in Warangal district, 2,500 hectares at Bayyaram in Khammam district and 342 hectares at Bheemadevarapalli in Karimnagar district.
He described it as “a historic moment for RINL’’ and recalled the positive response by the Chief Minister when the RINL had approached the State Government for allotment of captive iron ore mines.
He said the CM had taken special interest for the benefit of RINL and for the rapid growth of steel industry in Andhra Pradesh.
Choudhary further said that the move would strengthen RINL’s expansion plans to become 20 mtpa plant, the largest plant in a single location.
He said that as there was no scientific exploration taken up by any of the Government agencies in these allotted mining areas, it would be taken up shortly by RINL-VSP to assess the quantity and quality of iron ore available.
He said RINL would be investing around Rs 1,000 crore for the development of mines which would create employment for around 1,000 people, both direct and indirect.
Choudhary also requested the State Government to take forward the proposal to the Union Government as early as possible for getting the necessary clearances from the Union Ministry of Mines.
In a statement issued here on Thursday, RINL Chairman and Managing Director A.P Choudhary, hailed the decision of Chief Minister N. Kiran Kumar Reddy.
The State Govenment will allot iron ore mines to RINL-VSP, spread over an area of 2,500 hectares at Guduru in Warangal district, 2,500 hectares at Bayyaram in Khammam district and 342 hectares at Bheemadevarapalli in Karimnagar district.
He described it as “a historic moment for RINL’’ and recalled the positive response by the Chief Minister when the RINL had approached the State Government for allotment of captive iron ore mines.
He said the CM had taken special interest for the benefit of RINL and for the rapid growth of steel industry in Andhra Pradesh.
Choudhary further said that the move would strengthen RINL’s expansion plans to become 20 mtpa plant, the largest plant in a single location.
He said that as there was no scientific exploration taken up by any of the Government agencies in these allotted mining areas, it would be taken up shortly by RINL-VSP to assess the quantity and quality of iron ore available.
He said RINL would be investing around Rs 1,000 crore for the development of mines which would create employment for around 1,000 people, both direct and indirect.
Choudhary also requested the State Government to take forward the proposal to the Union Government as early as possible for getting the necessary clearances from the Union Ministry of Mines.
Hennes and Mauritz seeks FIPB nod to invest Rs 720 crore in retail business in India
Mumbai/ New Delhi: Swedish fast-fashion retail giant Hennes and Mauritz, or H&M, has sought permission from the Foreign Investment Promotion Board to invest Rs 720 crore (approx 100 million) in India to start a fully-owned company that will open 50 H&M stores.
Faced with stagnating or slowing sales in key European and US markets, the world's second-largest apparel retailer by sales, has been eyeing emerging economies, including India, for a while.
If the proposal is approved, India will be the 50th market for H&M that had sales of $18 billion in 2012 from its over 2,800 stores globally. The application was filed with FIPB, a unit of the finance ministry that clears foreign direct investment proposals, on Thursday through law firm Titus and Co.
The retail giant says in its application it will fulfil all conditions of the country's single-brand retail policy that includes sourcing locally 30% of the total value of the goods purchased.
It also assured it will not retail goods using the e-commerce platform. During his visit in February, while meeting commerce and industry minister Anand Sharma, H&M chief executive Karl-Johan Persson labelled India as a "very interesting" market.
"It's a huge market. We are not there yet. More than a billion people live in India and in Sweden we are only 9 million but we have 150 stores (in Sweden)," Persson had said.
H&M will engage in import, export, marketing, distribution, warehousing, manufacture, production and retail trade of products carrying the H&M brand. If its application is approved, it will sell 10 categories of products in India such as clothes, footwear, cosmetics, handbags and fashion accessories, home furnishing, home decoration, toys, kitchen utensils and cutlery among others.
In India, H&M's biggest rival and world leader in sales, Zara achieved break-even within the first year of its launch and has annual sales of Rs 260 crore from nine stores. Several other brands such as Levi's haven't been so lucky and are still reeling under losses despite their decade old presence.
Experts feel that H&M's global model is very similar to Zara —that of quickly duplicating and replicating fast fashion —a key reason why even the Swedish brand should click with the Indian consumers.
"They cater to the mid-premium apparel segment which is one of the fastest growing categories even with a high base. H&M's global supply chain model is amenable to the Indian context from shorter cycle replenishment and local sourcing," said Abheek Singhi, partner and director at Boston Consulting Group.
H&M follows in the footsteps of its Scandinavian peer, IKEA, which is currently waiting for the final approval to open 25 stores with an investment of Rs 10,500 crore.
After six years of restricting foreign ownership in single-brand retail companies to 51%, India removed this sectoral cap in January and allowed global brands such as IKEA and Zara, which sell a variety of products under a single label to set up fully-owned companies in India. The original policy change came with a requirement of 30% local sourcing, but the government diluted that condition after overseas firms said it was not feasible.
More than one dozen single brand retailers are said to be sizing up the Indian market for entry, many of them in various stages of researching, partner scouting or filing for government approvals. Some of these are direct rivals of H&M including the largest casual wear retailer in the United States, Gap Inc, French apparel retailer Celio and Japanese fashion brand Uniqlo.
Faced with stagnating or slowing sales in key European and US markets, the world's second-largest apparel retailer by sales, has been eyeing emerging economies, including India, for a while.
If the proposal is approved, India will be the 50th market for H&M that had sales of $18 billion in 2012 from its over 2,800 stores globally. The application was filed with FIPB, a unit of the finance ministry that clears foreign direct investment proposals, on Thursday through law firm Titus and Co.
The retail giant says in its application it will fulfil all conditions of the country's single-brand retail policy that includes sourcing locally 30% of the total value of the goods purchased.
It also assured it will not retail goods using the e-commerce platform. During his visit in February, while meeting commerce and industry minister Anand Sharma, H&M chief executive Karl-Johan Persson labelled India as a "very interesting" market.
"It's a huge market. We are not there yet. More than a billion people live in India and in Sweden we are only 9 million but we have 150 stores (in Sweden)," Persson had said.
H&M will engage in import, export, marketing, distribution, warehousing, manufacture, production and retail trade of products carrying the H&M brand. If its application is approved, it will sell 10 categories of products in India such as clothes, footwear, cosmetics, handbags and fashion accessories, home furnishing, home decoration, toys, kitchen utensils and cutlery among others.
In India, H&M's biggest rival and world leader in sales, Zara achieved break-even within the first year of its launch and has annual sales of Rs 260 crore from nine stores. Several other brands such as Levi's haven't been so lucky and are still reeling under losses despite their decade old presence.
Experts feel that H&M's global model is very similar to Zara —that of quickly duplicating and replicating fast fashion —a key reason why even the Swedish brand should click with the Indian consumers.
"They cater to the mid-premium apparel segment which is one of the fastest growing categories even with a high base. H&M's global supply chain model is amenable to the Indian context from shorter cycle replenishment and local sourcing," said Abheek Singhi, partner and director at Boston Consulting Group.
H&M follows in the footsteps of its Scandinavian peer, IKEA, which is currently waiting for the final approval to open 25 stores with an investment of Rs 10,500 crore.
After six years of restricting foreign ownership in single-brand retail companies to 51%, India removed this sectoral cap in January and allowed global brands such as IKEA and Zara, which sell a variety of products under a single label to set up fully-owned companies in India. The original policy change came with a requirement of 30% local sourcing, but the government diluted that condition after overseas firms said it was not feasible.
More than one dozen single brand retailers are said to be sizing up the Indian market for entry, many of them in various stages of researching, partner scouting or filing for government approvals. Some of these are direct rivals of H&M including the largest casual wear retailer in the United States, Gap Inc, French apparel retailer Celio and Japanese fashion brand Uniqlo.
D Purandeswari inaugurates India Show in Panama
New Delhi: The Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari today inaugurated the India Show in Panama. Speaking during the inauguration, the Indian Minister emphasised on enhanced cooperation and engagements between India and Panama. She exhorted the business leaders of both the sides to increase the trade and investments to next level.
She also emphasised that the visa regime between two countries should be liberalised besides a general Memorandum of Understanding (MoU) for trade and economic cooperation between both the countries may be signed.
Mr. Ricardo Antonio Quijano Jimenez, Commerce and Industry Minister of Panama, Mr. Irvin A. Halman, President of Panama Chambers of Commerce, and Indian Ambassador to Panama Mr. Yogeshwar Varma, were also present during the inauguration of India Show.
Before the India Show, Dr. D Purandeswari also participated in the Expocomer Fair 2013 of Panama. Expocomer fair was inaugurated by Mr. Ricardo Martinelli, President of Panama. Others present included Governor of Pueto Rico, various ministers of government of Panama and representatives of Panama Chambers of Commerce and CII.
Dr. D Purandeswari also expressed that Panama should conduct a road show in India shortly and exchange of business delegations between both the countries should also take place.
She also emphasised that the visa regime between two countries should be liberalised besides a general Memorandum of Understanding (MoU) for trade and economic cooperation between both the countries may be signed.
Mr. Ricardo Antonio Quijano Jimenez, Commerce and Industry Minister of Panama, Mr. Irvin A. Halman, President of Panama Chambers of Commerce, and Indian Ambassador to Panama Mr. Yogeshwar Varma, were also present during the inauguration of India Show.
Before the India Show, Dr. D Purandeswari also participated in the Expocomer Fair 2013 of Panama. Expocomer fair was inaugurated by Mr. Ricardo Martinelli, President of Panama. Others present included Governor of Pueto Rico, various ministers of government of Panama and representatives of Panama Chambers of Commerce and CII.
Dr. D Purandeswari also expressed that Panama should conduct a road show in India shortly and exchange of business delegations between both the countries should also take place.
Thursday, April 18, 2013
BMW to make MINI Countryman in Chennai
Chennai: BMW’s Chennai plant will soon become the first one outside Europe to manufacture the luxury car maker’s compact sports utility vehicle (SUV) the MINI Countryman.
Production of the compact SUV will start next month and it will start hitting the roads by the end of the year, said Robert Frittrang, managing director, BMW India. The move to expand the company’s international production network is in response to the growing demand for premium MINI cars, BMW said in a statement.
When the company starts production, MINI will be India’s first locally-manufactured premium small car. The firm expects significant growth over the medium- and long-term. According to the company, Chennai-manufactured MINI will fulfil the same quality standards that apply to BMW Group models worldwide. BMW also expects local production of MINI could improve its demand in India.
“It is a very good product for Indian road condition, with high ground clearance. It is also a car in which five persons can travel comfortably,” Frittrang told reporters on the sidelines of the convocation ceremony of Indo-German Training Centre, Chennai.
The locally-produced vehicle will be introduced in two diesel variants - MINI Cooper D Countryman and MINI Cooper D Countryman High. Another petrol variant, MINI One Countryman, will also be produced at Chennai. Since 2007, the company has invested around ^60 million in India.
The other petrol variants - MINI Cooper S Countryman and MINI Cooper S Countryman High – will be imported in India as completely built-up units (CBUs).
The price of the vehicles range from Rs 26.60 lakh to Rs 37.50 lakh.
At present, the compact SUV is manufactured at Oxford in UK and in Austria.
India is the 100th market in the global MINI sales network and has become increasingly significant for the BMW Group since establishing its presence in India from 2007. From January 2012, MINI has continued to grow its presence in India and has established five exclusive outlets across Delhi, Mumbai, Hyderabad and Bangalore.
In March 2007, BMW India officially opened its production plant in Chennai. The existing facility in a 40-acre land in Mahindra World City, about 50 kms away from Chennai city, has a capacity to manufacture 11,000 units a year, in two shifts, said Frittrang.
At present, BMW’s Chennai plant produces BMW 3 Series, BMW 5 Series, BMW X1, and BMW X3. In 2013, the plant will also produce BMW 7 series and BMW 1 series.
Coca-Cola to set up Rs 600 crore plant near Dehradun
Dehradun: Uttarakhand government on Wednesday oversaw the signing of a Memorandum Of Understanding between State Industrial and Infrastructure Development Corporation of Uttarakhand Ltd (SIDCUL) and Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL).
The MOU was signed to set up Rs 600 crore manufacturing plant in Dehradun's Vikas Nagar Tehsil. The manufacturing plant will be spread over 60 acres producing non-alcoholic carbonated beverages, juices, fruit-based drinks and packages of drinking water.
The MOU was signed between SIDCUL's managing director Rakesh Sharma and HCCBPL's executive director Shukla Wasan.
Chief minister Bahuguna was present at the event and said that the government has already allotted land for setting up the manufacturing plant. HCCBPL will invest Rs 6000 crore to establish the plant in two phases, he added.
Bahuguna further added that this deal will attract more business houses and mega companies to invest in state. He said that the government launched SIDCUL- phase 2 to attract investment for development of Uttarakhand and that several there is considerable interest in the state as the crime rate is low.
"We hope to attract more investment in state in the days to come," he said.
HCCBPL vice-president Patrick George handed over a check of Rs 1.60 crore as earnest money and processing charges to Bahuguna.
The MOU was signed to set up Rs 600 crore manufacturing plant in Dehradun's Vikas Nagar Tehsil. The manufacturing plant will be spread over 60 acres producing non-alcoholic carbonated beverages, juices, fruit-based drinks and packages of drinking water.
The MOU was signed between SIDCUL's managing director Rakesh Sharma and HCCBPL's executive director Shukla Wasan.
Chief minister Bahuguna was present at the event and said that the government has already allotted land for setting up the manufacturing plant. HCCBPL will invest Rs 6000 crore to establish the plant in two phases, he added.
Bahuguna further added that this deal will attract more business houses and mega companies to invest in state. He said that the government launched SIDCUL- phase 2 to attract investment for development of Uttarakhand and that several there is considerable interest in the state as the crime rate is low.
"We hope to attract more investment in state in the days to come," he said.
HCCBPL vice-president Patrick George handed over a check of Rs 1.60 crore as earnest money and processing charges to Bahuguna.
Essar Energy joins UN corporate responsibility project
Mumbai: Essar Energy has announced that it has become a signatory to the United Nations Global Compact (UNGC), which is a voluntary corporate responsibility initiative, with over 10,000 corporate participants and other stakeholders from over 130 countries.
The UNGC is also a strategic policy measure for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.
The company, in a press release, said that it is committed to adopting a globally recognised policy framework, for the development, implementation and disclosure of environmental, social and governance policies and practices.
The UNGC is also a strategic policy measure for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.
The company, in a press release, said that it is committed to adopting a globally recognised policy framework, for the development, implementation and disclosure of environmental, social and governance policies and practices.
Cipla launches first biosimilar for rheumatic disorders
Mumbai: Drug maker Cipla has locally rolled out its first biosimilar, Etanercept, used to treat rheumatic disorders.
Formed through a partnership alliance, the drug sold under the Etacept brandname will be manufactured by China-based Shanghai CP Guojian Pharmaceutical Co and marketed by Cipla in India, a note from Cipla said.
Rheumatic disorders
The introduction of Etacept now signals Cipla’s entry into the biologics segment offering an option to the patients suffering from rheumatic disorders at a lower cost.
Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints. It can lead to joint damage and deformities.
If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality. However, rheumatic disorders can be controlled by early diagnosis and treatment, the note explained.
Etacept is available as a powder to be given by subcutaneous injection, and is available with stockists across the country at Rs 6,150.
Cipla’s Medical Director Dr Jaideep Gogtay said: “The higher cost of biologics has been a major hindrance, limiting its affordability and accessibility to millions of patients. We believe that introducing Etacept at a lower cost (30 per cent lesser compared to the innovator) will enable access of this drug to a greater number of patients in India. This can be enhanced further if we consider the results of a recent study that showed in patients, who were successfully treated with Etanercept for six months, a 50 per cent reduced dose worked just as well as continuing the current dose.”
Anti-rheumatic drugs
At present, there are disease-modifying anti-rheumatic drugs which are considered to be the first line of treatment for rheumatic disorders. However, approximately 40 per cent of the patients are not controlled on these drugs.
In such cases, biologics like Etanercept play a significant role in controlling the disease activity and make a positive difference in the lives of these patients, the company said.
Inflammation, joint damage
Etacept contains Etanercept, a biologic produced by recombinant DNA technology. Etacept (Etanercept) binds to TNF-α, a cytokine that plays a very important role in inflammation and joint damage in rheumatic disorders. It helps in modifying the course of the disease and prevents further damage to the joints.
Etacept (Etanercept) is approved in the management of rheumatic disorders like Rheumatoid Arthritis, Ankylosing Spondylitis, Juvenile Idiopathic Rheumatoid Arthritis and Psoriatic Arthritis, the company said.
Since its launch in 2006 in China by Shanghai CP Guojian Pharmaceutical Co, over 50,000 patients have been treated with Etanercept. Clinical efficacy and safety of the drug have also been well established in Indian patients, Cipa said.
What is rheumatic disorder?
Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints.
It can lead to joint damage and deformities.
If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality.
However, rheumatic disorders can be controlled by early diagnosis and treatment, the company explained. At present, there are disease modifying anti-rheumatic drugs which are considered to be the first line of treatment for the problem.
However, approximately 40 per cent of the patients are not on these drugs.
In such cases, biologics like Etanercept play a significant role in controlling the disease and make a positive difference in the lives of these patients.
Formed through a partnership alliance, the drug sold under the Etacept brandname will be manufactured by China-based Shanghai CP Guojian Pharmaceutical Co and marketed by Cipla in India, a note from Cipla said.
Rheumatic disorders
The introduction of Etacept now signals Cipla’s entry into the biologics segment offering an option to the patients suffering from rheumatic disorders at a lower cost.
Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints. It can lead to joint damage and deformities.
If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality. However, rheumatic disorders can be controlled by early diagnosis and treatment, the note explained.
Etacept is available as a powder to be given by subcutaneous injection, and is available with stockists across the country at Rs 6,150.
Cipla’s Medical Director Dr Jaideep Gogtay said: “The higher cost of biologics has been a major hindrance, limiting its affordability and accessibility to millions of patients. We believe that introducing Etacept at a lower cost (30 per cent lesser compared to the innovator) will enable access of this drug to a greater number of patients in India. This can be enhanced further if we consider the results of a recent study that showed in patients, who were successfully treated with Etanercept for six months, a 50 per cent reduced dose worked just as well as continuing the current dose.”
Anti-rheumatic drugs
At present, there are disease-modifying anti-rheumatic drugs which are considered to be the first line of treatment for rheumatic disorders. However, approximately 40 per cent of the patients are not controlled on these drugs.
In such cases, biologics like Etanercept play a significant role in controlling the disease activity and make a positive difference in the lives of these patients, the company said.
Inflammation, joint damage
Etacept contains Etanercept, a biologic produced by recombinant DNA technology. Etacept (Etanercept) binds to TNF-α, a cytokine that plays a very important role in inflammation and joint damage in rheumatic disorders. It helps in modifying the course of the disease and prevents further damage to the joints.
Etacept (Etanercept) is approved in the management of rheumatic disorders like Rheumatoid Arthritis, Ankylosing Spondylitis, Juvenile Idiopathic Rheumatoid Arthritis and Psoriatic Arthritis, the company said.
Since its launch in 2006 in China by Shanghai CP Guojian Pharmaceutical Co, over 50,000 patients have been treated with Etanercept. Clinical efficacy and safety of the drug have also been well established in Indian patients, Cipa said.
What is rheumatic disorder?
Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints.
It can lead to joint damage and deformities.
If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality.
However, rheumatic disorders can be controlled by early diagnosis and treatment, the company explained. At present, there are disease modifying anti-rheumatic drugs which are considered to be the first line of treatment for the problem.
However, approximately 40 per cent of the patients are not on these drugs.
In such cases, biologics like Etanercept play a significant role in controlling the disease and make a positive difference in the lives of these patients.
Commodity-wise freight revenue by Railways goes up by 22.95 per cent during fiscal2012-13
New Delhi: The Railways have generated Rs. 84791.06 crore of revenue earnings from commodity-wise freight traffic during fiscal 2012-13 as compared to Rs. 68965.44 crore during the corresponding period last year, registering an increase of 22.95 per cent. Railways carried 1009.83 million tonnes of commodity-wise freight traffic during financial year 2012-13 as compared to 969.78 million tonnes carried during the corresponding period last year, registering an increase of 4.13 per cent.
Out of the total earnings of Rs. 7749.94 crore from commodity-wise freight traffic during the month of March 2013, Rs. 3608.30 crore came from transportation of 48.79 million tonnes of coal, followed by Rs. 738.58 crore from 10.35 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 876.12 crore from 11.05 million tonnes of cement, Rs. 744.77 crore from 5.24 million tonnes of foodgrains, Rs. 409.49 crore from 3.55 million tonnes of petroleum oil and lubricant (POL), Rs. 506.98 crore from 3.37 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 313.09 crore from 3.10 million tonnes of fertilizers, Rs. 139.51 crore from 1.56 million tonnes of raw material for steel plants except iron ore, Rs. 393.70 crore from 3.85 million tonnes by container service and Rs. 630.04 crore from 7.46 million tonnes of other goods.
Out of the total earnings of Rs. 7749.94 crore from commodity-wise freight traffic during the month of March 2013, Rs. 3608.30 crore came from transportation of 48.79 million tonnes of coal, followed by Rs. 738.58 crore from 10.35 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 876.12 crore from 11.05 million tonnes of cement, Rs. 744.77 crore from 5.24 million tonnes of foodgrains, Rs. 409.49 crore from 3.55 million tonnes of petroleum oil and lubricant (POL), Rs. 506.98 crore from 3.37 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 313.09 crore from 3.10 million tonnes of fertilizers, Rs. 139.51 crore from 1.56 million tonnes of raw material for steel plants except iron ore, Rs. 393.70 crore from 3.85 million tonnes by container service and Rs. 630.04 crore from 7.46 million tonnes of other goods.
Steelcase opens manufacturing unit in India
Pune: Steelcase, a Michigan USA-based manufacturer of office furniture, has opened its first manufacturing facility in India. Located in Chakan, the new plant will employ approximately 100 people.Steelcase sees the plant as a vital step in enhancing the services and logistics it provides to its growing Indian customer base.
Uli Gwinner, President, Steelcase Asia-Pacific, said: “We need to be where our customers are, so this is a critical long-term investment for Steelcase.”
Jeff Ge, Vice-President of Operations, Asia-Pacific, added that the new plant will produce a range of Steelcase products specifically for the Indian market.
“It signifies the importance that we place on servicing India, as part of our goal of strengthening Steelcase’s overall presence in Asia,” he added.
With the new plant, Steelcase aims to reduce delivery times and expand the range of products available to customers in India.
Honda's Rajasthan plant to roll out cars in 2014-15
Ahmedabad: Honda Cars India Ltd (HCIL) will roll out the first cars from its Rajasthan plant in the next financial year, 2014-15, a senior company official said on Tuesday.
HCIL will also launch five new models by 2015.
Honda’s plant at Tappugada, in Alwar district of Rajasthan, which has started making various components, will begin car production in the next financial year, said Shigeru Yamazaki, Senior Vice-President and Director, Marketing and Sales.
Rs 2,500-cr investment
HCIL has invested Rs 2,500 crore on this plant, spread over 450 acres. Its capacity will be 440 cars, or 120,000 units a year, the same as that of Honda’s other plant in Greater Noida, Yamazaki said.
The plant procures 80-90 per cent of its components from local vendors, and has begun exporting its products. Last year, it exported Honda Brio to South Africa.
He said Honda India, which sold 73,000 units last fiscal, expects to use the full capacity at its Greater Noida plant soon, given increased demand. In 2012-13, the company grew 35 per cent, a pace that it expects to sustain.
Yamazaki, who launched family sedan Honda Amaze here, said the company has introduced this diesel car for the first time in India.
Wider choice
So far, Honda has been selling diesel cars only in Europe. Amaze has been developed at the Honda R&D Asia Pacific Company Ltd, Bangkok (Thailand). India is the first country to launch Amaze with Honda’s latest i-DTEC diesel engine technology.
It has introduced the diesel variant to provide customers a wider choice. In India, 70 per cent of car market is for the diesel variant, which Honda did not have until it launched Amaze.
HCIL is increasing the number of its dealers from 150 to 162 across India this year to promote the sale of Amaze, whose typical buyers seem to be middle-income and middle-aged businessmen.
The company is now focusing on tier-2 and tier-3 towns and cities for prospective buyers.
HCIL will also launch five new models by 2015.
Honda’s plant at Tappugada, in Alwar district of Rajasthan, which has started making various components, will begin car production in the next financial year, said Shigeru Yamazaki, Senior Vice-President and Director, Marketing and Sales.
Rs 2,500-cr investment
HCIL has invested Rs 2,500 crore on this plant, spread over 450 acres. Its capacity will be 440 cars, or 120,000 units a year, the same as that of Honda’s other plant in Greater Noida, Yamazaki said.
The plant procures 80-90 per cent of its components from local vendors, and has begun exporting its products. Last year, it exported Honda Brio to South Africa.
He said Honda India, which sold 73,000 units last fiscal, expects to use the full capacity at its Greater Noida plant soon, given increased demand. In 2012-13, the company grew 35 per cent, a pace that it expects to sustain.
Yamazaki, who launched family sedan Honda Amaze here, said the company has introduced this diesel car for the first time in India.
Wider choice
So far, Honda has been selling diesel cars only in Europe. Amaze has been developed at the Honda R&D Asia Pacific Company Ltd, Bangkok (Thailand). India is the first country to launch Amaze with Honda’s latest i-DTEC diesel engine technology.
It has introduced the diesel variant to provide customers a wider choice. In India, 70 per cent of car market is for the diesel variant, which Honda did not have until it launched Amaze.
HCIL is increasing the number of its dealers from 150 to 162 across India this year to promote the sale of Amaze, whose typical buyers seem to be middle-income and middle-aged businessmen.
The company is now focusing on tier-2 and tier-3 towns and cities for prospective buyers.
Rs 1,000-cr desalination plant for Chennai
Chennai: A 150-million-litre-a-day desalination plant to convert sea water to drinking water is to come up adjacent to the Nemmeli desalination plant, announced the Chief Minister, J. Jayalalithaa in the Assembly today.
The additional capacity will come up at a cost of about Rs 1,000 crore on the 10.5-acre vacant plot next to the existing desalination plant which was formally inaugurated in February.
The plant, which is in operation, about 35 km South of Chennai on the East Coast Road, now supplies about 100 million litres of fresh water daily.
The additional capacity will supply drinking water to over 6.46 lakh residents in the suburbs to the south of Chennai which were added to the City Corporation limits.
A 200-million-litre-a-day desalination plant will also be established at Pattipulam to the south of Chennai with provision to expand to 400 million litres.
This unit will be set up within four years, she said.
The expanded portions of the city will also get over 225 km length of integrated roads at a cost of Rs 290 crore, 1.10 lakh energy efficient street lights at a cost of Rs 300 crore, and sewerage treatment plants at a cost of Rs 121 crore.
The additional capacity will come up at a cost of about Rs 1,000 crore on the 10.5-acre vacant plot next to the existing desalination plant which was formally inaugurated in February.
The plant, which is in operation, about 35 km South of Chennai on the East Coast Road, now supplies about 100 million litres of fresh water daily.
The additional capacity will supply drinking water to over 6.46 lakh residents in the suburbs to the south of Chennai which were added to the City Corporation limits.
A 200-million-litre-a-day desalination plant will also be established at Pattipulam to the south of Chennai with provision to expand to 400 million litres.
This unit will be set up within four years, she said.
The expanded portions of the city will also get over 225 km length of integrated roads at a cost of Rs 290 crore, 1.10 lakh energy efficient street lights at a cost of Rs 300 crore, and sewerage treatment plants at a cost of Rs 121 crore.
India's semiconductor consumption to grow over 20% this year: Gartner
Mumbai: In contrast with the global trend, India’s semiconductor consumption rose 7.4 per cent to touch $8 billion in 2012 from that a year ago.
Worldwide semiconductor revenues fell 2.6 per cent to touch $299.9 billion in 2012, according to a study by research and analysis firm Gartner.
“The worldwide semiconductor industry suffered serious disruption in 2012. Excess inventory in the supply chain was the key factor,” said Ganesh Ramamoorthy, research director at Gartner.
“High inventory levels impacted semiconductor consumption in India as well during 2012. However, a relatively better domestic economic climate and growth in consumer spending helped semiconductor consumption growth in India,” he added.
Of the three key electronic devices — mobile phones, PCs and LCD TVs, LCD TVssaw the biggest growth of nearly 45 per cent in terms of semiconductor consumption.
Demand for mobile phones grew 5.7 per cent and that of personal computers fell 0.3 per cent during 2012.
The three key electronic devices account for more than 70 per cent of India’s overall semiconductor consumption.
Consumption to rise
“With the global semiconductor industry poised for a rebound starting in the second quarter of 2013, we expect the semiconductor consumption in India to also grow. Semiconductor consumption in India will reach $9.6 billion in 2013, an increase of 20 per cent over 2012,” said Ramamoorthy.
“Mobile phones, PCs and LCD TVs will account for 74 per cent of India’s total semiconductor consumption in 2013,” he added.
Worldwide semiconductor revenues fell 2.6 per cent to touch $299.9 billion in 2012, according to a study by research and analysis firm Gartner.
“The worldwide semiconductor industry suffered serious disruption in 2012. Excess inventory in the supply chain was the key factor,” said Ganesh Ramamoorthy, research director at Gartner.
“High inventory levels impacted semiconductor consumption in India as well during 2012. However, a relatively better domestic economic climate and growth in consumer spending helped semiconductor consumption growth in India,” he added.
Of the three key electronic devices — mobile phones, PCs and LCD TVs, LCD TVssaw the biggest growth of nearly 45 per cent in terms of semiconductor consumption.
Demand for mobile phones grew 5.7 per cent and that of personal computers fell 0.3 per cent during 2012.
The three key electronic devices account for more than 70 per cent of India’s overall semiconductor consumption.
Consumption to rise
“With the global semiconductor industry poised for a rebound starting in the second quarter of 2013, we expect the semiconductor consumption in India to also grow. Semiconductor consumption in India will reach $9.6 billion in 2013, an increase of 20 per cent over 2012,” said Ramamoorthy.
“Mobile phones, PCs and LCD TVs will account for 74 per cent of India’s total semiconductor consumption in 2013,” he added.
India expected to export 7.5 MT of wheat by June 2013
New Delhi: Wheat exports from India is expected to touch a record high of 7.5 million tonnes (MT) in the current marketing year ending June 2013, on the back of record crop and larger carry over stocks, while many other exporting nations are expected to face tight supplies, according to a report by Food and Agriculture Organisation (FAO).
Shipments from India remained lower in marketing year 2011-12, as wheat export was allowed via private trade only after lifting the ban on the same in September 2011, as per the market experts.
To reduce stocks built up due to record harvest, India is promoting export of government-held stocks. It has already allowed state-run firms to export 4.5 MT of wheat. Additionally, the Government permitted private traders to ship additional grain.
Wheat plantings in India are close to previous year’s levels and another bumper crop is in prospect, although forecast is slightly below the 2012 record (93.90 MT) because of limited rainfall in some important producing areas.
While, Russian Federation, European Union (EU), Australia are forecast to face tight supplies which will lead to reduced exports from these countries, larger exports by India will help in easing the market situation.
Shipments from India remained lower in marketing year 2011-12, as wheat export was allowed via private trade only after lifting the ban on the same in September 2011, as per the market experts.
To reduce stocks built up due to record harvest, India is promoting export of government-held stocks. It has already allowed state-run firms to export 4.5 MT of wheat. Additionally, the Government permitted private traders to ship additional grain.
Wheat plantings in India are close to previous year’s levels and another bumper crop is in prospect, although forecast is slightly below the 2012 record (93.90 MT) because of limited rainfall in some important producing areas.
While, Russian Federation, European Union (EU), Australia are forecast to face tight supplies which will lead to reduced exports from these countries, larger exports by India will help in easing the market situation.
Tuesday, April 16, 2013
Subhash Chandra's Essel Group launches Rs 1,000-cr realty fund
Mumbai: The $4-billion Essel Group has launched a Rs 1,000-crore real estate private equity (PE) fund as part of its asset management foray. The fund will have a corpus of Rs 500 crore, with an option to have an additional Rs 500 crore.
Subhash Chandra-promoted media company Zee Entertainment is the principal sponsor and anchor investor in the PE fund. Zee has put in Rs 100 crore and Chandra’s family office trust gave Rs 100 crore as part of the initial closure of the fund, which took place last week, said Amit Goenka, managing director and chief executive of Essel Financial Services, the new financial services arm of Essel Group.
The group got a licence for the fund called ‘India Asset Growth Fund Series I’, which will essentially do debt funding for the residential projects in top six metros, said Goenka.
“We will do last-mile funding and bridge financing facilities to developers and target 20-22 per cent internal rate of returns from our investments,” Goenka added. The group is also looking to launch an offshore fund of $100 million in the next three-four months to augment the first fund.
After Series I, which is focusing on residential assets, the group is also looking to launch Series II sometime next year, which will invest in education assets.
The Series I fund has already deployed some funds and it is in the process of deploying the rest over the next couple of weeks.
The fund has deployed Rs 40 crore in a residential project in Chennai and plans to invest Rs 80 crore in a project in Mumbai next week, followed by a Rs 60 crore investment in a residential project in Gurgaon, he said. “We will mainly compete with non banking finance companies (NBFCs) and PE funds, which do mezzanine financing (a hybrid of debt and equity financing),” he added.
The Essel Group has appointed a six-member investment committee and a 12-member investment committee to manage the fund.
The group has proposed the names of former chairman of Knight Frank, Pranay Vakil, former chairman of Bank of Baroda, Anil Harish, former chairman of PwC, Jairaj Purandhare, and former chief of the Institute of Chartered Accountants India, Mukund Chitale, on its investment committee.
The fund-raising scenario in real estate is bouncing back in 2013. According to data from VCCedge, 15 India-dedicated realty funds have raised $1 billion in 2012, against $911 million by eight funds in 2011.
In 2013, two funds have raised $91 million. Avenue Real Estate Fund has closed its fund by raising $64 million, while ArthVeda Star Fund has raised $26.8 million in 2013.
Indiareit Fund Advisors, the PE arm of Ajay Piramal’s Piramal Enterprises, announced plans to raise Rs 200 crore over the next three months for its fifth domestic real estate fund.
The domestic fund has a total corpus of Rs 750 crore with an option to expand by Rs 250 crore. Indiareit is also planning to launch an offshore fund of $300 million (Rs 1,632 crore) next month from investors in Europe, Asia and Australia.
Other major funds in fund-raising mode include Redfort India Real Estate Fund ($500 million), Shapoorji Pallonji Real Estate Fund ($500 million) and ASK Real Estate Special Opportunities Fund ($220 million)
Subhash Chandra-promoted media company Zee Entertainment is the principal sponsor and anchor investor in the PE fund. Zee has put in Rs 100 crore and Chandra’s family office trust gave Rs 100 crore as part of the initial closure of the fund, which took place last week, said Amit Goenka, managing director and chief executive of Essel Financial Services, the new financial services arm of Essel Group.
The group got a licence for the fund called ‘India Asset Growth Fund Series I’, which will essentially do debt funding for the residential projects in top six metros, said Goenka.
“We will do last-mile funding and bridge financing facilities to developers and target 20-22 per cent internal rate of returns from our investments,” Goenka added. The group is also looking to launch an offshore fund of $100 million in the next three-four months to augment the first fund.
After Series I, which is focusing on residential assets, the group is also looking to launch Series II sometime next year, which will invest in education assets.
The Series I fund has already deployed some funds and it is in the process of deploying the rest over the next couple of weeks.
The fund has deployed Rs 40 crore in a residential project in Chennai and plans to invest Rs 80 crore in a project in Mumbai next week, followed by a Rs 60 crore investment in a residential project in Gurgaon, he said. “We will mainly compete with non banking finance companies (NBFCs) and PE funds, which do mezzanine financing (a hybrid of debt and equity financing),” he added.
The Essel Group has appointed a six-member investment committee and a 12-member investment committee to manage the fund.
The group has proposed the names of former chairman of Knight Frank, Pranay Vakil, former chairman of Bank of Baroda, Anil Harish, former chairman of PwC, Jairaj Purandhare, and former chief of the Institute of Chartered Accountants India, Mukund Chitale, on its investment committee.
The fund-raising scenario in real estate is bouncing back in 2013. According to data from VCCedge, 15 India-dedicated realty funds have raised $1 billion in 2012, against $911 million by eight funds in 2011.
In 2013, two funds have raised $91 million. Avenue Real Estate Fund has closed its fund by raising $64 million, while ArthVeda Star Fund has raised $26.8 million in 2013.
Indiareit Fund Advisors, the PE arm of Ajay Piramal’s Piramal Enterprises, announced plans to raise Rs 200 crore over the next three months for its fifth domestic real estate fund.
The domestic fund has a total corpus of Rs 750 crore with an option to expand by Rs 250 crore. Indiareit is also planning to launch an offshore fund of $300 million (Rs 1,632 crore) next month from investors in Europe, Asia and Australia.
Other major funds in fund-raising mode include Redfort India Real Estate Fund ($500 million), Shapoorji Pallonji Real Estate Fund ($500 million) and ASK Real Estate Special Opportunities Fund ($220 million)
Sun Pharma gets FDA nod for generic version of Januvia
New Delhi: Indian drugmaker Sun Pharma received a tentative approval from the US drug regulator for generic version of Januvia late last week, fuelling speculation among analysts that the company has challenged the patent on the blockbuster anti-diabetes drug.
This comes as a surprise as Sun has partnered the US based multinational Merck Sharp & Dohme (MSD) in the domestic market to sue Glenmark for the patent infringement on the same drug. While confirming the tentative approval from US Food and Drug Administration (US FDA), a Sun Pharma spokesperson told ET that it can't comment on the nature of filing.
The earliest that Sun can launch the generic version of the drug is in 2022. However, industry experts say an application filed 12 to 14 years before the patents for the drug are set to expire is most likely to be a Para IV application. Apara IV filing means Sun has either challenged the validity of MSD's patent on Januvia (on the monophosphate or the product it markets) or submitted that its generic version wouldn't infringe MSD's patent.
While patent related to Januvia basic compound is set to expire on 2022, patents related to the salt or product (the monophosphate version that is marketed) will only expire in 2026 in the US. "If you check the date on which Sun Pharma filed its abbreviated new drug application for the salt Januvia, it is 18 October 2010, which is two days after NCE-1 date, a cut-off date for filing a Para IV application," an analyst said on condition of anonymity.
Two other generic players which have filed their application around the same time are US based generic giant Mylan and Sandoz, the generic arm of Swiss drugmaker Novartis. Sun Pharma's India strategy on Januvia got firmed up only in 2011 when it entered into an agreement with MSD for marketing, promoting and distributing MSD's diabetes products, including Januvia.
"We are not in litigation with Sun Pharma in the US for sitagliptin (generic name for Januvia). Filing of or tentative approval by USFDA does not provide a right to put the generic product sought in the ANDA on the market till the patent expiry date, which in this case is 2022. We have not taken any legal action against Sun, nor any other generic in the US, as they have taken a position of respect for the basic sitagliptin compound patent," a MSD spokesperson said.
"Assuming, Sun's application is of para IV type, MSD can still legally challenge Sun Pharma before 2022 and if it doesn't, it would have to be ready for a generic version of the drug in the US market, at least four years before its patent on the salt (Januvia) actually expires," the analyst said. Earlier this month, MSD sued Glenmark alleging that two its recently launched anti-diabetes drugs infringe its patent coverage of drugs Januvia and Janumet.
This comes as a surprise as Sun has partnered the US based multinational Merck Sharp & Dohme (MSD) in the domestic market to sue Glenmark for the patent infringement on the same drug. While confirming the tentative approval from US Food and Drug Administration (US FDA), a Sun Pharma spokesperson told ET that it can't comment on the nature of filing.
The earliest that Sun can launch the generic version of the drug is in 2022. However, industry experts say an application filed 12 to 14 years before the patents for the drug are set to expire is most likely to be a Para IV application. Apara IV filing means Sun has either challenged the validity of MSD's patent on Januvia (on the monophosphate or the product it markets) or submitted that its generic version wouldn't infringe MSD's patent.
While patent related to Januvia basic compound is set to expire on 2022, patents related to the salt or product (the monophosphate version that is marketed) will only expire in 2026 in the US. "If you check the date on which Sun Pharma filed its abbreviated new drug application for the salt Januvia, it is 18 October 2010, which is two days after NCE-1 date, a cut-off date for filing a Para IV application," an analyst said on condition of anonymity.
Two other generic players which have filed their application around the same time are US based generic giant Mylan and Sandoz, the generic arm of Swiss drugmaker Novartis. Sun Pharma's India strategy on Januvia got firmed up only in 2011 when it entered into an agreement with MSD for marketing, promoting and distributing MSD's diabetes products, including Januvia.
"We are not in litigation with Sun Pharma in the US for sitagliptin (generic name for Januvia). Filing of or tentative approval by USFDA does not provide a right to put the generic product sought in the ANDA on the market till the patent expiry date, which in this case is 2022. We have not taken any legal action against Sun, nor any other generic in the US, as they have taken a position of respect for the basic sitagliptin compound patent," a MSD spokesperson said.
"Assuming, Sun's application is of para IV type, MSD can still legally challenge Sun Pharma before 2022 and if it doesn't, it would have to be ready for a generic version of the drug in the US market, at least four years before its patent on the salt (Januvia) actually expires," the analyst said. Earlier this month, MSD sued Glenmark alleging that two its recently launched anti-diabetes drugs infringe its patent coverage of drugs Januvia and Janumet.
Swedish retailer Rusta sets up India operations
New Delhi: With the Indian retail sector having opened up to foreign players, it is Swedish retailer Rusta that has now announced its plans to set up its operations in the country. While the company has been sourcing finished products from India for the past one decade, the furniture and leisure products manufacturer has now come up with plans to set up its office in India as also up its imports from the country.
""We are very positive about India. India is a huge country and we realized it had to contribute to our growth more than what it is currently,"" said Goran Westerberg, CEO, Rusta.
The company, which has been sourcing goods worth $10 million from India until now, will now increase the same to around $40 million per year as well as increase its manpower as it seeks to buy products directly from suppliers now. ""We realized that running our business by way of third party agents was not a sustainable model...obviously we will grow in terms of the number of offices here too,"" Westerberg said.
The $450 million company deals in a wide range of products including furniture, decorative items, home textiles etc. While the company currently has stores only in Sweden, almost 50% of its products are sourced from other countries in Asia and Europe.
With the new investments in place, Westerberg said India will rank as the company's second biggest market for sourcing after China in the next few years. Currently India remains at the tenth position, ranking after China, Indonesia, Vietnam and others. Almost 45% of products for the company is being sourced from China.
Despite the government allowing 100% foreign direct investment ( FDI) in the single brand retail sector, the company said it is not keen on setting up its stores in the country. Even as opening of the sector will provide India with the necessary skills and competence, Westerberg said the company will first explore Scandinavian countries for expansion before looking at Asia.
""We are looking at India as a long term market. It is a huge challenge to get known here, both as an importer and a retailer,"" he said.
Rusta currently has 67 stores in Sweden and plans to add 10-12 stores every year. The company has five offices in Asia, including in China, Bangkok, Shanghai and now India.
""We are very positive about India. India is a huge country and we realized it had to contribute to our growth more than what it is currently,"" said Goran Westerberg, CEO, Rusta.
The company, which has been sourcing goods worth $10 million from India until now, will now increase the same to around $40 million per year as well as increase its manpower as it seeks to buy products directly from suppliers now. ""We realized that running our business by way of third party agents was not a sustainable model...obviously we will grow in terms of the number of offices here too,"" Westerberg said.
The $450 million company deals in a wide range of products including furniture, decorative items, home textiles etc. While the company currently has stores only in Sweden, almost 50% of its products are sourced from other countries in Asia and Europe.
With the new investments in place, Westerberg said India will rank as the company's second biggest market for sourcing after China in the next few years. Currently India remains at the tenth position, ranking after China, Indonesia, Vietnam and others. Almost 45% of products for the company is being sourced from China.
Despite the government allowing 100% foreign direct investment ( FDI) in the single brand retail sector, the company said it is not keen on setting up its stores in the country. Even as opening of the sector will provide India with the necessary skills and competence, Westerberg said the company will first explore Scandinavian countries for expansion before looking at Asia.
""We are looking at India as a long term market. It is a huge challenge to get known here, both as an importer and a retailer,"" he said.
Rusta currently has 67 stores in Sweden and plans to add 10-12 stores every year. The company has five offices in Asia, including in China, Bangkok, Shanghai and now India.
Public sector units spent $8.5 b on IT in FY12: Zinnov
Mumbai: Public sector units (PSUs) spent $8.5 billion in FY12 on IT, more than 2 per cent of their total revenues. It was higher compared with other verticals and mainly for the energy and banking, financial services and insurance (BFSI) verticals, according to a study by market research firm Zinnov.
“IT is viewed to be a major cost reduction enabler in many PSUs, given the automation of processes and integrated IT set-ups. Today, PSUs are looking at IT to analyse customer information efficiently and develop targeted and customised offerings for customers,” said Praveen Bhadada, Director (Market Expansion) at Zinnov.
The PSUs, with revenue growths of 11 per cent since 2009, posted a total turnover of $383 billion in FY12 and employ 1.4 million personnel. About 40 per cent of the PSUs are in the manufacturing sector.
The investment in technology is shaping the growth of the PSUs. Government companies are investing in technology to help address the challenges they faced in the early years of transition towards establishing a transparent and accountable organisation, reducing cost of production and enhancing productivity and customer reach.
“India is a hub of 225 PSUs operating across verticals, with 16 of these companies featuring in the global list of top 2,000 companies. With their growing size and dominance, PSUs have started looking at IT to address global competition,” added Bhadada. Examples include that of State Bank of India and the public sector oil marketing company Bharat Petroleum Corporation Ltd (BPCL). SBI, the country’s largest banker, implemented a global core banking solution, while BPCL made early investments in big data.
The PSUs will post a turnover of more than $1 trillion by 2020. A large part of this will be invested in IT including cloud, big data and mobility.
“IT is viewed to be a major cost reduction enabler in many PSUs, given the automation of processes and integrated IT set-ups. Today, PSUs are looking at IT to analyse customer information efficiently and develop targeted and customised offerings for customers,” said Praveen Bhadada, Director (Market Expansion) at Zinnov.
The PSUs, with revenue growths of 11 per cent since 2009, posted a total turnover of $383 billion in FY12 and employ 1.4 million personnel. About 40 per cent of the PSUs are in the manufacturing sector.
The investment in technology is shaping the growth of the PSUs. Government companies are investing in technology to help address the challenges they faced in the early years of transition towards establishing a transparent and accountable organisation, reducing cost of production and enhancing productivity and customer reach.
“India is a hub of 225 PSUs operating across verticals, with 16 of these companies featuring in the global list of top 2,000 companies. With their growing size and dominance, PSUs have started looking at IT to address global competition,” added Bhadada. Examples include that of State Bank of India and the public sector oil marketing company Bharat Petroleum Corporation Ltd (BPCL). SBI, the country’s largest banker, implemented a global core banking solution, while BPCL made early investments in big data.
The PSUs will post a turnover of more than $1 trillion by 2020. A large part of this will be invested in IT including cloud, big data and mobility.
India, Finland to explore solar energy applications for oil & gas projects
New Delhi: India and Finland have identified several key areas of collaboration in sustainable development for mutual benefits in the oil & gas sector, which includes specific projects in solar energy applications for oil & gas Projects, biofuels & algae based biofuels research and water and waste water management.
Other areas indentified are carbon capture and reformation, Finland's Green Growth & Groove programme for suitable application to Indian scenario and academic institutions/universities for collaborative R&D projects in areas of low carbon growth technologies and sustainable development, oil ministry said in a statement.
An agreement between the two countries on these matters are expected, it said after a bilateral meeting between delegations of the two countries. Indian delegation was represented by Petroleum Minister for State Lakshmi Panabaka and Marja Rislakki, State Secretary, Ministry of Employment & Economy of Finland.
Other areas indentified are carbon capture and reformation, Finland's Green Growth & Groove programme for suitable application to Indian scenario and academic institutions/universities for collaborative R&D projects in areas of low carbon growth technologies and sustainable development, oil ministry said in a statement.
An agreement between the two countries on these matters are expected, it said after a bilateral meeting between delegations of the two countries. Indian delegation was represented by Petroleum Minister for State Lakshmi Panabaka and Marja Rislakki, State Secretary, Ministry of Employment & Economy of Finland.
Monday, April 15, 2013
L&T to acquire Komatsu stake in joint venture
Mumbai: Larsen and Toubro will acquire the 50 per cent stake held by Komatsu Asia & Pacific in L&T-Komatsu Ltd (LTK).
Komatsu Asia & Pacific is a wholly-owned subsidiary of Komatsu Ltd, Japan.
L&T declined to furnish details of the transaction and said the value was insignificant. L&T holds the balance stake.
Komatsu is the largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide.
With this buy-out, LTK will become a wholly owned subsidiary of L&T.
L&T Komatsu will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said.
L&T will continue to extend marketing, sales and product support in India for the Komatsu range of products.
L&T started the Bangalore unit to make hydraulic excavators in 1975. It inked the joint venture in 1998.
The Bangalore facility comprises machinery and hydraulic works. The products manufactured at L&T-Komatsu are supplied to domestic and overseas customers.
Komatsu Asia & Pacific is a wholly-owned subsidiary of Komatsu Ltd, Japan.
L&T declined to furnish details of the transaction and said the value was insignificant. L&T holds the balance stake.
Komatsu is the largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide.
With this buy-out, LTK will become a wholly owned subsidiary of L&T.
L&T Komatsu will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said.
L&T will continue to extend marketing, sales and product support in India for the Komatsu range of products.
L&T started the Bangalore unit to make hydraulic excavators in 1975. It inked the joint venture in 1998.
The Bangalore facility comprises machinery and hydraulic works. The products manufactured at L&T-Komatsu are supplied to domestic and overseas customers.
Outbound tourism market from India grows: Four emerging trends
New Delhi: Foreign tourist boards are gearing up to meet the growing number of Indians who are travelling abroad and splurging. Starting direct flights is the first step.
Never mind the sluggish economy and poor sentiments, there's good news from the world of travel and tourism. India has emerged as the world's fastest-growing outbound market and in absolute numbers it is second only to China. The number of Indians travelling overseas is set to rise from around 15 million today to 50 million by 2020, according to Tourism Australia.
This will mean a big growth in spending overseas. According to a recently released Amadeus-Frost & Sullivan tourism industry report, Indians travelling to Asia-Pacific alone spent $13.3 billion in 2011. This figure is set to zoom to $91 billion by 2030, making Indians the second-biggest spenders, after China, in the world on overseas travel.
Not surprisingly, the world is taking note. Tourism Australia hopes to get 300,000 Indian tourists by 2020. South Africa Tourism Board too says India has become one of the key tourism generating nations for their country. Indian tourist arrivals to Thailand crossed the 1-million mark for the first time in 2012.
Thai Airways have recently started direct flights between Delhi and Phuket and Mumbai and Phuket to cater to the surging demand from Indians looking for wedding destinations and holidays. "Direct flights are a good precursor to the growth in tourist numbers," says Deep Kalra, founder, Makemytrip.com.
The introduction of direct flights between India and Istanbul has led to a sharp rise in Indian tourists travelling to Istanbul, Kalra notes. Spotting demand, Turkish Airlines today connects many Indian cities including Delhi, Mumbai and Hyderabad with Istanbul.
Travel to Meet Family
In pre-liberalisation days, with little disposable income and fewer options, holidays for most middle-class Indians were about visiting friends and families in India. It is a trend that is playing out well overseas among globetrotting Indians.
According to the Amadeus-Frost & Sullivan report, a high 43% of leisure travellers from India say visiting friends and relatives (VFR) was the main reason behind their overseas travel.
Partly this has to do with the growing diaspora — estimated by the government at 25 million but Kalra puts it at around 100 million. The VFR travellers behave differently than standard vacation travellers, says Ankur Bhatia, director, Amaedus India. "They travel for longer periods, and typically do not book hotels but stay with friends and relatives," he says.
Extended Weekends — Abroad
Weekend holidays in nearby hill stations are passe. Now with direct flights to a number of foreign tourist destinations, Indians would rather spend their extended weekends overseas.
Short-haul direct international flights — anything around five hours of flight time — are seeing the biggest growth, says Kalra. Maldives, Thailand, Hong Kong, the UAE and Dubai are some of the important emerging destinations.
The fact that it is cheaper to travel and holiday in Thailand than in Kerala, and stay in better hotels, is a big incentive. Also noticeable is the fact that Indians are taking more frequent holidays.
According to the Makemytrip data, while Indians would typically take an international holiday once in 18-24 months five years back, the frequency is now once in 12-18 months.
New Niches, Customised Offerings
Of course the demand for packaged tours offered by companies like Cox & Kings is growing among Indians travelling overseas for the first time. But more and more globetrotting Indians are turning experimental, looking to customise trips, opting for offbeat destinations and newer experiences.
According to the Amadeus-Frost & Sullivan report, while the number of solo women and senior Indians (65 years-plus) travelling overseas is still a small category in both the business and leisure segments, it is likely to grow many fold by 2030.
Women business travellers, today pegged at 25% of the total, are set to rise by 891% by 2030. And senior travellers, currently pegged at 1.3 million, are set to rise to 7.3 million by 2030.
There is a small but growing category of Indian food lovers, says Himmat Anand, founder of Tree of Life Resort, who is a travel industry veteran having worked with Sita Travels and Kuoni India.
"Earlier, it was an afterthought. But now, food is becoming very important, especially at the upper end," he says. All this means that the companies in travel and tourism will have plenty of opportunities to differentiate themselves and customise their offerings to lure international travellers from India.
Growth at the Top and BOP
Experts see two categories of Indian travellers growing — at the top end and the bottom end — as incomes rise. This isn't true just for India but Asia Pacific at large.
From around 700 million people in the middle class in 2011, the number is set to touch 2.1 billion by 2030, signalling the rise of what is called the consuming class (annual household income of $5,000 plus). The biggest chunk of this growth will come from China and India.
India's middle class, the report estimates, will grow from the present 5% to 50% by 2030. Similarly, HNIs are expected to grow six fold by 2030 — from around 0.2 million in 2011 to over 1.2 million by 2030. This segment will fuel growth at the luxury end of the market.
Never mind the sluggish economy and poor sentiments, there's good news from the world of travel and tourism. India has emerged as the world's fastest-growing outbound market and in absolute numbers it is second only to China. The number of Indians travelling overseas is set to rise from around 15 million today to 50 million by 2020, according to Tourism Australia.
This will mean a big growth in spending overseas. According to a recently released Amadeus-Frost & Sullivan tourism industry report, Indians travelling to Asia-Pacific alone spent $13.3 billion in 2011. This figure is set to zoom to $91 billion by 2030, making Indians the second-biggest spenders, after China, in the world on overseas travel.
Not surprisingly, the world is taking note. Tourism Australia hopes to get 300,000 Indian tourists by 2020. South Africa Tourism Board too says India has become one of the key tourism generating nations for their country. Indian tourist arrivals to Thailand crossed the 1-million mark for the first time in 2012.
Thai Airways have recently started direct flights between Delhi and Phuket and Mumbai and Phuket to cater to the surging demand from Indians looking for wedding destinations and holidays. "Direct flights are a good precursor to the growth in tourist numbers," says Deep Kalra, founder, Makemytrip.com.
The introduction of direct flights between India and Istanbul has led to a sharp rise in Indian tourists travelling to Istanbul, Kalra notes. Spotting demand, Turkish Airlines today connects many Indian cities including Delhi, Mumbai and Hyderabad with Istanbul.
Travel to Meet Family
In pre-liberalisation days, with little disposable income and fewer options, holidays for most middle-class Indians were about visiting friends and families in India. It is a trend that is playing out well overseas among globetrotting Indians.
According to the Amadeus-Frost & Sullivan report, a high 43% of leisure travellers from India say visiting friends and relatives (VFR) was the main reason behind their overseas travel.
Partly this has to do with the growing diaspora — estimated by the government at 25 million but Kalra puts it at around 100 million. The VFR travellers behave differently than standard vacation travellers, says Ankur Bhatia, director, Amaedus India. "They travel for longer periods, and typically do not book hotels but stay with friends and relatives," he says.
Extended Weekends — Abroad
Weekend holidays in nearby hill stations are passe. Now with direct flights to a number of foreign tourist destinations, Indians would rather spend their extended weekends overseas.
Short-haul direct international flights — anything around five hours of flight time — are seeing the biggest growth, says Kalra. Maldives, Thailand, Hong Kong, the UAE and Dubai are some of the important emerging destinations.
The fact that it is cheaper to travel and holiday in Thailand than in Kerala, and stay in better hotels, is a big incentive. Also noticeable is the fact that Indians are taking more frequent holidays.
According to the Makemytrip data, while Indians would typically take an international holiday once in 18-24 months five years back, the frequency is now once in 12-18 months.
New Niches, Customised Offerings
Of course the demand for packaged tours offered by companies like Cox & Kings is growing among Indians travelling overseas for the first time. But more and more globetrotting Indians are turning experimental, looking to customise trips, opting for offbeat destinations and newer experiences.
According to the Amadeus-Frost & Sullivan report, while the number of solo women and senior Indians (65 years-plus) travelling overseas is still a small category in both the business and leisure segments, it is likely to grow many fold by 2030.
Women business travellers, today pegged at 25% of the total, are set to rise by 891% by 2030. And senior travellers, currently pegged at 1.3 million, are set to rise to 7.3 million by 2030.
There is a small but growing category of Indian food lovers, says Himmat Anand, founder of Tree of Life Resort, who is a travel industry veteran having worked with Sita Travels and Kuoni India.
"Earlier, it was an afterthought. But now, food is becoming very important, especially at the upper end," he says. All this means that the companies in travel and tourism will have plenty of opportunities to differentiate themselves and customise their offerings to lure international travellers from India.
Growth at the Top and BOP
Experts see two categories of Indian travellers growing — at the top end and the bottom end — as incomes rise. This isn't true just for India but Asia Pacific at large.
From around 700 million people in the middle class in 2011, the number is set to touch 2.1 billion by 2030, signalling the rise of what is called the consuming class (annual household income of $5,000 plus). The biggest chunk of this growth will come from China and India.
India's middle class, the report estimates, will grow from the present 5% to 50% by 2030. Similarly, HNIs are expected to grow six fold by 2030 — from around 0.2 million in 2011 to over 1.2 million by 2030. This segment will fuel growth at the luxury end of the market.
Farm output may rise 130% in 20 years: CII-McKinsey report
New Delhi: India can achieve a leadership position in the world food market and also meet its growing domestic demand, promises a report by CII-McKinsey, issued today.
The assurance is based, it says, on various steps to be taken on policy, with the active involvement of the private sector. Termed the third Food and Agriculture Integrated Development Action Report (Faida), it has been jointly prepared by the Confederation of Indian Industry (CII) and consultants McKinsey & Company.
The report says India has the potential to increase its value of agricultural output by 130 per cent (at farmgate prices), from Rs 12.7 lakh crore in 2011 to Rs 29.3 lakh crore in 2030, if it follows a 12-point plan to improve yields across all crops, augmenting processing capability and strengthening the quality of farm produce. It wants a mix of business participation, technology-oriented productivity growth, food processing and exports, over the next 20 years.
"Agriculture needs to get into a mission mode and our analysis shows that instead of focusing on grains and cereals, the first step should be for perishables. Both Centre and states need to move fast in this sector, to create an enabling policy environment by keeping perishable commodities out of the ambit of the Agriculture Produce Marketing Committee Act," said Adil Zainulbhai, chairman-India of McKinsey.
‘A high-value powerhouse’
Titled ‘India as an agriculture and high value food powerhouse: A new vision for 2030’, the report said processing of farm items have the potential to grow by 414 per cent to Rs 5.7 lakh crore in 2030 from Rs 1.1 lakh crore in 2011. And, food exports to rise 452 per cent, from Rs 1.4 lakh crore in 2011 to Rs 7.7 lakh crore in 2030. "All these are conservative estimates and Indian agriculture has much more potential," said Rakesh B Mittal, past chairman of the CII National Council on Agriculture and chairman of Faida-3.
“As an outcome (of all this), the sector could grow by 5.2-5.7 per cent (in real terms, annually) over the next 20 years,” the 100-plus page report said.
It identified mango, banana, potato, soybean and poultry as five items to drive the next wave of growth in Indian agriculture.
The report says India presently achieves just 50-60 per cent of the potential yield for most crops. The reasons include poor technology adoption, weak links between farmers and industry, unexplored opportunities in branding, marketing and exports, lack of infrastructure support and dearth of extension support.
As a direct correlation of the high growth it promises, it says farmer income will rise by over four times in real terms, while consumers will also benefit from the increase in supplies, which in turn will help match India’s estimated per capita consumption of food items in 2030. It estimates the latter figure to increase from Rs 9,360 to Rs 15,390 (an annual increase of three per cent at 2010 prices) in the next 20 years.
In the past decade,consumption of food items has moved more towards high-value ones such as fruits, vegetables, milk, meat and fish.
"The ratio tof cereals and pulses in the overall food budget of the average Indian consumer has dropped by more than 25 per cent in the last one decade," the report said. In 2000, basic foodgrains formed 60 per cent of the total agricultural produce by weight, with high-value produce constituting 38 per cent. By 2010, high-value food formed 45 per cent of total production and this proportion will increase.
How
To achieve its target, the report has a list of 12 key points. It wants, for instance, a National Farm Gate to Market Infrastructure Authority, on the lines of the National Highways Authority of India, to integrate the working of multiple authorities in the logistics segments.
“There are many bodies like the National Centre for Cold Chain Development Authority, National Horticulture Board, APEDA, Ministry of Food Processing, etc, involved in building and managing the farm gate infrastructure in terms of sorting, packaging, storage and transportation. Due to multiple players, there is fragmentation and insufficient accountability for an integrated solution,” the report said.
"This all encompassing authority will clearly define what each of the above mentioned bodies needs to do so, as to provide a seamless cold chain infrastructure in the country," said Zainulbhai.
It also advocated a favourable policy regime for agriculture marketing, through removal of caps on subsidies for essential agriculture investments, review of taxation structures and stock limits and a unified regulatory mechanism for organised input retail, which would provide farmers with a one-stop shop for all farm inputs and amendments to the land ceiling Aact, to promote corporate farming and aggregation of land through long-tenure leases, say for a period of 10 years.
The report also called for starting two separate missions, one on agricultural technology and the other on sustainable farming, to promote high-quality seeds, scientific farming and yield improvement mechanisms. The sustainability mission, the report said, should create a national map of soil type and water availability, to identify areas that need to replenish specific nutrients.
For ensuring consumers and farmers develop a taste for branded food products, the report has advocated creation of a new segment called ‘branded food’, which would be led by the industry, be voluntary and on the lines of the ‘Woolmark’ brand for wool items.
Brands, flows
“The development of branded food would assure consumers of its freshness, healthiness, quality and traceability,” the report said. To promote export of select items, the government should set up a National Agriculture and Food Export Mission, with the help of private players that would identify the right products and markets, invest in market creation, ensure adherence to international quality benchmarks. "The first Faida report said India's food processing sector would become a Rs 215,000-225,000 crore industry by 2005 but till 2010, it has become only a Rs 66,000 crore industry, thus realising only 10 per cent of its potential," the report said.
India should learn from countries who have successfully marketed their farm produce worldwide, like ‘Florida Oranges’, the report said.
On extension services, the report asked for participation of private entities. “The Agricultural Technology Management Agency has only 100,000 extension workers, which is 10 per cent of the requirement. The Krishi Vigyan Kendras (KVKs) have a similar story to tell, with only one KVK per district, each with about 20 scientific staff members.”
It also called for setting up an Indian Institute of Agriculture Technology, on the lines of IITs and IIMs, and a network of four or five world-class food and agriculture institutes across the country. “There is a need to create a new generation of agri-entrepreneurs who will lead this next wave of growth,” it recommends. It also advocated more industry-farmer partnerships, through established models like farmer-producer organisations and farmer-producer companies.
The assurance is based, it says, on various steps to be taken on policy, with the active involvement of the private sector. Termed the third Food and Agriculture Integrated Development Action Report (Faida), it has been jointly prepared by the Confederation of Indian Industry (CII) and consultants McKinsey & Company.
The report says India has the potential to increase its value of agricultural output by 130 per cent (at farmgate prices), from Rs 12.7 lakh crore in 2011 to Rs 29.3 lakh crore in 2030, if it follows a 12-point plan to improve yields across all crops, augmenting processing capability and strengthening the quality of farm produce. It wants a mix of business participation, technology-oriented productivity growth, food processing and exports, over the next 20 years.
"Agriculture needs to get into a mission mode and our analysis shows that instead of focusing on grains and cereals, the first step should be for perishables. Both Centre and states need to move fast in this sector, to create an enabling policy environment by keeping perishable commodities out of the ambit of the Agriculture Produce Marketing Committee Act," said Adil Zainulbhai, chairman-India of McKinsey.
‘A high-value powerhouse’
Titled ‘India as an agriculture and high value food powerhouse: A new vision for 2030’, the report said processing of farm items have the potential to grow by 414 per cent to Rs 5.7 lakh crore in 2030 from Rs 1.1 lakh crore in 2011. And, food exports to rise 452 per cent, from Rs 1.4 lakh crore in 2011 to Rs 7.7 lakh crore in 2030. "All these are conservative estimates and Indian agriculture has much more potential," said Rakesh B Mittal, past chairman of the CII National Council on Agriculture and chairman of Faida-3.
“As an outcome (of all this), the sector could grow by 5.2-5.7 per cent (in real terms, annually) over the next 20 years,” the 100-plus page report said.
It identified mango, banana, potato, soybean and poultry as five items to drive the next wave of growth in Indian agriculture.
The report says India presently achieves just 50-60 per cent of the potential yield for most crops. The reasons include poor technology adoption, weak links between farmers and industry, unexplored opportunities in branding, marketing and exports, lack of infrastructure support and dearth of extension support.
As a direct correlation of the high growth it promises, it says farmer income will rise by over four times in real terms, while consumers will also benefit from the increase in supplies, which in turn will help match India’s estimated per capita consumption of food items in 2030. It estimates the latter figure to increase from Rs 9,360 to Rs 15,390 (an annual increase of three per cent at 2010 prices) in the next 20 years.
In the past decade,consumption of food items has moved more towards high-value ones such as fruits, vegetables, milk, meat and fish.
"The ratio tof cereals and pulses in the overall food budget of the average Indian consumer has dropped by more than 25 per cent in the last one decade," the report said. In 2000, basic foodgrains formed 60 per cent of the total agricultural produce by weight, with high-value produce constituting 38 per cent. By 2010, high-value food formed 45 per cent of total production and this proportion will increase.
How
To achieve its target, the report has a list of 12 key points. It wants, for instance, a National Farm Gate to Market Infrastructure Authority, on the lines of the National Highways Authority of India, to integrate the working of multiple authorities in the logistics segments.
“There are many bodies like the National Centre for Cold Chain Development Authority, National Horticulture Board, APEDA, Ministry of Food Processing, etc, involved in building and managing the farm gate infrastructure in terms of sorting, packaging, storage and transportation. Due to multiple players, there is fragmentation and insufficient accountability for an integrated solution,” the report said.
"This all encompassing authority will clearly define what each of the above mentioned bodies needs to do so, as to provide a seamless cold chain infrastructure in the country," said Zainulbhai.
It also advocated a favourable policy regime for agriculture marketing, through removal of caps on subsidies for essential agriculture investments, review of taxation structures and stock limits and a unified regulatory mechanism for organised input retail, which would provide farmers with a one-stop shop for all farm inputs and amendments to the land ceiling Aact, to promote corporate farming and aggregation of land through long-tenure leases, say for a period of 10 years.
The report also called for starting two separate missions, one on agricultural technology and the other on sustainable farming, to promote high-quality seeds, scientific farming and yield improvement mechanisms. The sustainability mission, the report said, should create a national map of soil type and water availability, to identify areas that need to replenish specific nutrients.
For ensuring consumers and farmers develop a taste for branded food products, the report has advocated creation of a new segment called ‘branded food’, which would be led by the industry, be voluntary and on the lines of the ‘Woolmark’ brand for wool items.
Brands, flows
“The development of branded food would assure consumers of its freshness, healthiness, quality and traceability,” the report said. To promote export of select items, the government should set up a National Agriculture and Food Export Mission, with the help of private players that would identify the right products and markets, invest in market creation, ensure adherence to international quality benchmarks. "The first Faida report said India's food processing sector would become a Rs 215,000-225,000 crore industry by 2005 but till 2010, it has become only a Rs 66,000 crore industry, thus realising only 10 per cent of its potential," the report said.
India should learn from countries who have successfully marketed their farm produce worldwide, like ‘Florida Oranges’, the report said.
On extension services, the report asked for participation of private entities. “The Agricultural Technology Management Agency has only 100,000 extension workers, which is 10 per cent of the requirement. The Krishi Vigyan Kendras (KVKs) have a similar story to tell, with only one KVK per district, each with about 20 scientific staff members.”
It also called for setting up an Indian Institute of Agriculture Technology, on the lines of IITs and IIMs, and a network of four or five world-class food and agriculture institutes across the country. “There is a need to create a new generation of agri-entrepreneurs who will lead this next wave of growth,” it recommends. It also advocated more industry-farmer partnerships, through established models like farmer-producer organisations and farmer-producer companies.
Visa on Arrival Scheme registers a growth of 63 percent
New Delhi: The Visa on Arrival (VOA) scheme of the Government for foreign tourists registered a growth of 63% during March, 2013. During the month, a total number of 2,107 VoAs were issued as compared to 1,287 VoAs issued during March, 2012.
The following are the other important highlights of VoAs issued during March, 2013:
During the period January to March 2013, a total number of 5,744 VoAs were issued as compared to 3,905 VoAs during corresponding period of 2012 registering a positive growth of 47.1%.
The number of VoAs issued under this scheme during March 2013 for nationals of the eleven countries were Japan (848), New Zealand (332), Indonesia (312), the Philippines (225), Singapore (214), Finland (109), Luxembourg (32), Vietnam (20), Myanmar (8), Cambodia (7) and Laos (0).
The number of VoAs issued under the Scheme during January to March 2013 were Japan (2251), New Zealand (985), Indonesia (739), the Philippines (631), Singapore (571), Finland (386), Luxembourg (61), Vietnam (53), Cambodia (42), Myanmar (22) and Laos (3).
During the period January to March 2013, the highest number of VoAs were issued at Delhi airport (3371) followed by Mumbai (1239), Chennai (778) and Kolkata (356).
The following are the other important highlights of VoAs issued during March, 2013:
During the period January to March 2013, a total number of 5,744 VoAs were issued as compared to 3,905 VoAs during corresponding period of 2012 registering a positive growth of 47.1%.
The number of VoAs issued under this scheme during March 2013 for nationals of the eleven countries were Japan (848), New Zealand (332), Indonesia (312), the Philippines (225), Singapore (214), Finland (109), Luxembourg (32), Vietnam (20), Myanmar (8), Cambodia (7) and Laos (0).
The number of VoAs issued under the Scheme during January to March 2013 were Japan (2251), New Zealand (985), Indonesia (739), the Philippines (631), Singapore (571), Finland (386), Luxembourg (61), Vietnam (53), Cambodia (42), Myanmar (22) and Laos (3).
During the period January to March 2013, the highest number of VoAs were issued at Delhi airport (3371) followed by Mumbai (1239), Chennai (778) and Kolkata (356).
India and Mauritius sign memorandum of understanding on electoral cooperation
New Delhi: India and Mauritius have signed a Memorandum of Understanding (MoU) in New Delhi, for cooperation in the field of election management and administration.
The MoU was signed by the Chief Election Commissioner of India, Shri V.S. Sampath and the Electoral Commissioner of Mauritius, Mr. Mohammad Irfan Abdool Rahman. Election Commissioners of India, Shri H. S. Brahma and Dr. Nasim Zaidi; diplomats and senior officials of the Election Commission of India and Government of India were present at the signing ceremony.
The major aims of MoU are: promotion of exchanges of knowledge and experience in electoral processes; exchange of information, materials, expertise and training of personnel; production and distribution of materials pertaining to electoral systems, voting technology, voters’ education and awareness, and participation of women and minorities in electoral process.
Shri Sampath described the MoU as a great landmark and an important mechanism for strengthening and deepening mutual collaboration between ECI and the Electoral Commissioner’s Office of Mauritius. He expressed the confidence that the MoU would facilitate sharing of best practices, skills and experiences between the two institutions for mutual benefit. He stated that the partnership between two important Democracies – India and Mauritius – is a very good augury not only for the region but for the whole world.
Election Commissioner, Mr. Brahma offered the available expertise and facilities in India for strengthening the electoral system in Mauritius.
Mr. Abdool Rahman praised the expertise and experience gained by ECI over six decades in conducting the largest elections in the world in a peaceful, transparent and credible manner. He also stated that this MoU would formalize the very special relationship between the two Commissions and will strengthen the ongoing cooperation between them. He commended ECI’s initiative in setting up India Institute of Democracy and Election Management (IIIDEM), which is a world-class training and resource centre and stated that his office would be very interested in utilizing its training facilities. He also acknowledged that the Model Electoral Code of Mauritius has drawn inspiration from India’s Model Code of Conduct.
Election Commission of India has so far signed seventeen MOUs with Election Management Bodies and international organizations across the world. Some of the MoU signed recently are with Egypt, Venezuela, Republic of Korea and UNDP.
The MoU was signed by the Chief Election Commissioner of India, Shri V.S. Sampath and the Electoral Commissioner of Mauritius, Mr. Mohammad Irfan Abdool Rahman. Election Commissioners of India, Shri H. S. Brahma and Dr. Nasim Zaidi; diplomats and senior officials of the Election Commission of India and Government of India were present at the signing ceremony.
The major aims of MoU are: promotion of exchanges of knowledge and experience in electoral processes; exchange of information, materials, expertise and training of personnel; production and distribution of materials pertaining to electoral systems, voting technology, voters’ education and awareness, and participation of women and minorities in electoral process.
Shri Sampath described the MoU as a great landmark and an important mechanism for strengthening and deepening mutual collaboration between ECI and the Electoral Commissioner’s Office of Mauritius. He expressed the confidence that the MoU would facilitate sharing of best practices, skills and experiences between the two institutions for mutual benefit. He stated that the partnership between two important Democracies – India and Mauritius – is a very good augury not only for the region but for the whole world.
Election Commissioner, Mr. Brahma offered the available expertise and facilities in India for strengthening the electoral system in Mauritius.
Mr. Abdool Rahman praised the expertise and experience gained by ECI over six decades in conducting the largest elections in the world in a peaceful, transparent and credible manner. He also stated that this MoU would formalize the very special relationship between the two Commissions and will strengthen the ongoing cooperation between them. He commended ECI’s initiative in setting up India Institute of Democracy and Election Management (IIIDEM), which is a world-class training and resource centre and stated that his office would be very interested in utilizing its training facilities. He also acknowledged that the Model Electoral Code of Mauritius has drawn inspiration from India’s Model Code of Conduct.
Election Commission of India has so far signed seventeen MOUs with Election Management Bodies and international organizations across the world. Some of the MoU signed recently are with Egypt, Venezuela, Republic of Korea and UNDP.
Subscribe to:
Posts (Atom)