Mahindra First Choice hopes to expand used-car dealership network

Mangalore: The multi-brand used-car marketer, Mahindra First Choice, is planning to increase its dealerships by 100 during 2013-14.

Addressing presspersons on the sidelines of the inauguration of a dealership in Mangalore, Yatendra Chada, Vice-President, Retail (Franchisee), Mahindra First Choice Wheels Ltd, said the company has around 260 dealership outlets in the country. Around 100 more outlets would be opened during the current financial year, he said.

The company, which aims to expand the number of outlets to 500 in the next three years, wants to ensure its presence in each district in the years to come, he said.

At present, the company has a presence in 162 towns. This would be increased to 200 towns during the current financial year, he said.

To a query on its presence in Karnataka, Chada said the company has around seven dealership outlets in the State. It wants to have a total of 12 such outlets by the end of this fiscal, he said.

The company sold around 46,000 used cars during 2012-13, recording a growth of 35 per cent over the previous fiscal. It achieved this growth in spite of a slowdown in the economy, Chada said.

During the current year, the company wants to reach the target of selling around 60,000 used cars, he said.

Mahindra First Choice offers warranty on the cars it sells. In its ‘Warrantyfirst’ scheme, components concerned are covered for 12 months or 15,000 km, whichever is earlier. In its ‘Certifirst’ scheme, the warranty covers the car’s engine and transmission for six months or 7,500 km, whichever is earlier, he said.

Desmond Miranda and Praveen Pinto, Partners of Car Square (the authorised dealership of Mahindra First Choice), were present on the occasion.

Punjab approves four milk plants worth Rs 250 crore each

New Delhi: The Government of Punjab gave its approval to the expansion plan of state-owned Milkfed entailing setting up of four mega milk plants worth Rs 250 crore (US$ 44.83 million) each in the state.

The aim is to make Verka as a largest selling brand and that could be realised only by giving a big push to expansion of Milkfed, said Mr Sukhbir Singh Badal, Deputy Chief Minister of Punjab, Government of India.

The expansion plan would focus on right from encouraging dairy sector, setting up organised dairy farms, reorienting procurement of raw milk, scientific collection and chilling chain, ultra-modern milk processing facilities, value addition of milk products and effective marketing network to exploit the brand image of Verka, added Mr Badal.

In order to strengthen dairy sector at the grass root level, a specialised scheme for encouraging women in the sector that would provide subsidised loan to them to set up farms, technical help for setting up of dairy farms and support to such units by providing veterinary care and farm feed to dairy entrepreneurs in order to strengthen dairy sector from grass root level has also been approved.

Mr Badal asked Mr S K Sandhu, Principal Secretary Cooperative to put up a proposal for giving dairy sector an equivalent status as of agriculture for the purpose of bank credit.

“We have to increase the processing capacity four-fold and these plants should be of international standards with ISO 9002 specifications,” said Mr Badal. He further highlighted that the new diversification plan has a special incentive for the farmers who would switch over from paddy or wheat farming to complete fodder farming.

Shree Ganesh Jewellery House enters into joint venture with Rocks Creation of Bangladesh

Kolkata: Shree Ganesh Jewellery House (SGJH) has entered into a joint venture with Rocks Creation Limited of Dhaka, Bangladesh for manufacture of gold jewellery, both plain and studded with diamonds and other precious and semi-precious stones.

SGJH has clocked a 28% increase in turnover to Rs 12971 crore and a net profit of Rs 462 crore in FY13 as compared to Rs 461 crore in FY12.

During the fourth quarter of FY13, Alex Astral Power Private Limited, Group Company of SGJHL has received Indian Industrial Excellence Award organized by IREDA towards one of the best PLF (Power Load Factor) generating Company.

The company has formed a 100% subsidiary in Ghana for procurement of Dore Gold / Unrefined gold for further refining in India. Current order book size stands at Rs 2500 crore.

Commenting on the performance of FY13, Mr Umesh Parekh, managing director of said,: 'I am happy to inform that we had a great financial year as company revenue increased by 28%. The market witnessed dynamism this year with gold price fluctuations. Retail sales in India picked up significantly in the third quarter, with Diwali and a prolonged marriage season driving growth. Middle East continues to be our global market focus. To explore the emerging market in Bangladesh we have entered into a joint venture to set up a manufacturing unit at Dhaka in Bangladesh. Also, through our subsidiary at Ghana, we are planning for procurement of dore gold for refining in India."

Gujarat SMEs increase IT spending by 20%

Ahmedabad: While their larger counterparts may be going slow on information technology (IT) spending, small and medium enterprises (SMEs) in Gujarat are raising their IT spend. According to IT hardware and software component providers, there has been a 15-20 per cent increase in IT spending among SMEs in the state in the past six months.

"These days, large industries are pretty cautious as far as increasing their IT spending is concerned. However, SMEs are not so prone to global economic upheavals and are growing domestically. Hence, they have increased their expenditure on IT infrastructure in a bid to become more competitive," says K J Thakker, committee member and immediate past president of the Ahmedabad Computer Manufacturers' Association.

Having increased their IT infrastructure budgets, in both hardware and software, a typical SME with sales revenues of Rs 50-100 lakh now spends around Rs 100,000 a year on IT. Further, an SME with a turnover of Rs 5-10 crore spends around Rs 10-12 lakh per year on IT expansion.

According to Rushabh Mehta of Ahmedabad-based Techniks Infotech, the rise in IT spending is also explained by clients' demands for advanced automation and operational efficiency through the use of industry-specific software.

Among SMEs, auto-ancillaries and engineering industries, followed by BFSI (banking, financial services and insurance), pharmaceuticals, telecom and textiles have seen some of the highest increases in IT spending.

"Both overseas and domestic clients have been demanding use of advanced ERP systems and other software. Plus, SMEs in Gujarat have become more aware of international standards in software upgradation, and are leaving no stone unturned to match those standards. Moreover, SMEs are more flexible than large enterprises as far as hiking the IT budget is concerned," Thakker added.

Investing in IT infrastructure has become an integral part of doing business today, said Himanshu Nandasana, managing director of Rajkot-based Bhavani Industries, which makes transmission components. "We are continuously investing in IT infrastructure. It improves our operational efficiency, and we keep ourselves abreast of new software available in the market, especially in the engineering and designing space."

He added that apart from the bigger companies, even smaller and medium-sized component manufacturers and engineering firms in Rajkot are changing with the times and investing in IT.

Govt gets 12 proposals worth Rs 5,000 cr

Mumbai: The proposals are from telecom equipment, consumer electronics, solar panels, LED manufacturing and semi-conductor assembly-test-mark-pack companies, Ajay Kumar, Joint IT Secretary, Department of Electronics and Information Technology, told Business Line.

These were received under the Department’s Modified Special Incentive Package Scheme (M-SIPS), he added.

“When I say proposals, these are proposals for which funds are tied up. In fact, Rs 2,000 crore worth of proposals were received last week. There are several other companies that are in advanced stages of finalising their proposals, but we have not considered them yet,” said Kumar.

He, however, did not name the 12 companies.

Recently, telecom minister Kapil Sibal was quoted as saying that Bosch Electronics and Samsung have applied for the M-SIPS scheme.

Target set
The Department has set a target of accepting proposals worth Rs 25,000 crore by the current fiscal-end, Kumar said. By 2020, the Government intends to bring in investments of about $100 billion in the electronic equipment manufacturing industry, through its ‘National Policy on Electronics 2012’.

Under the M-SIPS, the Government will provide up to Rs 10,000 crore in benefits to the industry between 2012 and 2017 for promoting the production of electronics products and components.

The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in the Special Economic Zone and 25 per cent in non-SEZs. Investors will also get reimbursement of countervailing duties and excise for capital equipment for units set up outside the SEZs. The incentives would be provided for firms engaged in electronic design and manufacturing.

According to a 2009 task force report, the demand for electronics hardware in India is set to go up to $400 billion by 2020, but at the current growth rate, the domestic industry would be able to cater to demand worth $104 billion, while the rest would need to be imported.

Italian shoemakers eye India

New Delhi: High-end and super-expensive Italian shoemakers are looking at India as a replacement for their production base in Europe, increasingly a high-cost location for them. These brand manufacturers are also scouting for local partners. Some of these are leading brands such as Baldinini, LORIBLU, Giovanni Fabiani, NeroGiardini, Janet & Janet, FABI and Fratesi.

Another attraction is growing demand here for their products, unlike in Europe, though their footwear could cost anything between Rs 29,000 to Rs 1 lakh for a pair.

“Italian producers and manufacturers are looking for countries where the labour cost is lower, which is why they are looking at India,” Amedeo Scarpa, trade promotion attaché at the Italian embassy, told Business Standard.

He said these brands were exploring markets in the BRICS (Brazil, Russia, India. China and South Africa) countries, where the raw material cost is lower than in Europe. Analysts said China could give competition to India in this respect but India was increasingly having the advantage in terms of cost of labour.

“We are looking at more and more joint ventures and collaborations with Indian producers because Indian industry gives us the volume that these companies are now looking for,” said Scarpa. Around 40 high-end European leather and footwear brands, including those from Italy, Germany, France, the UK, Spain and Austria, are going to showcase their products at the Expo Riva Schuh India, an international shoes and leather accessories show, here on July 4-6.

“We want to shift from a concept of ‘Made in Italy’ to ‘Made with Italy’ as we go for more and more joint collaborations. This will be our way in entering the market,” said Scarpa. Adding, however, that the Indian market had a lot of trade barriers which sometimes affect the ease of doing business here.

“We have to find the part of the global value chain and where there is competitiveness. So, the more you lower your barriers, the more attractive investment destination you will be,” he said. Italian companies, said Scarpa, were also eagerly waiting for the India-European Union free trade agreement (FTA), under negotiation for a long while, to be signed. It could help them get more access to the Indian market, with the lowering of tariffs.

According to Carla Costa, fair manager of Riva Del Garda Fierecongressi, the demand for shoes of this type which can cost ¤^400-2,000 (Rs 28,780-144,000) each, was growing in India.

In Europe, the number of buyers are declining. Besides shoes, these brands also produce luxury bags, belts and wallets.

“India has a huge population and demand for such goods is on a rise here compared to Europe, where buyers are not ready to buy these costly shoes. So, we are now looking to go out of Europe. Prices in Europe are very high. The real demand is here,” adds Costa.

Overall, the Indian footwear market is estimated at about Rs 19,900 crore, with a yearly growth rate of eight to 10 per cent. The market includes casual, formal, semi-formal and sports shoes, along with sandals for men and women.

The men’s segment is 59 per cent of the market. The overall share of organised retail is 20 per cent and is expected to reach 25-30 per cent by 2015.

Of the total market, the super-rich segment might constitute only a small portion but Italians believe it would still be higher than demand for their products in Europe, facing low economic growth.

Bharti Airtel bags most new rural subscribers, India adds 3.5 million

Mumbai: India added net 3.5 million GSM subscribers in April largely driven by increase in rural areas, according to two statements released by the Cellular Operators Association of India on Friday.

The association said rural India added 3.8 million subscribers, of which 1.66 million joined Bharti Airtel, making the Indian bellwether the largest rural player again. However, on an all-India basis, Bharti added merely 601,252 subscribers in April, and the GSM industry association said the Sunil Mittal-promoted telco had lost around a million customers in urban areas.

Vodafone had pipped Bharti Airtel as the largest rural operator last month, but in April it had 83.8 million rural subscribers compared with 83.4 million of Vodafone.

In March Vodafone, which had tweaked its distribution model to boost sales in the villages, had 82.24 million, a shade above Bharti Airtel at 82.16 million.

For a few operators like Aircel and Tata Teleservices subscriber figures fell because customers stopped using their second mobile connection. Typically in rural areas many users take two connections to avail of discount plans offered by newer operators.

The overall largest gainers continue to be Vodafone India and Idea Cellular with 1.4 million and 1.3 million subscribers.

Subscribers on the network have long been a yardstick for growth and profitability of telecom operators. But in recent months the focus has shifted to revenue figures as a higher number of subscriber additions may also result in added costs for the operator due to initial plans and processing. Given the high churn and dual phone connection phenomenon in India some of these customers leave the operator's network before they start making a profitable contribution to revenue.

In terms of overall subscribers however, Bharti continues to be the leader with 188 million users, Vodafone 153 million and Idea Cellular 122 million.

In the first couple of months of 2013 several operators pared low-revenue customers to focus on more loyal ones.

Rural subscriber addition is a sign of revival of investment in those areas from operators.

Societe Generale's ALD Automotive bullish on India car lease biz

Mumbai: It is the world’s third largest player in car leasing, with nearly a million vehicles in 37 countries. Yet, ALD Automotive, the 100 per cent arm of the Societe Generale Group, has little to show in India, with just 8,000 cars leased over the past seven years.

All that is going to change, reiterates Tim Albertsen, Deputy CEO of ALD International, who was here recently to review operations. “We plan to double our size to over 15,000 units in the next three years given India’s potential,” he told Business Line.

While Western Europe accounts for a lion’s share of the ALD fleet with nearly 8.5 lakh leased cars, Albertsen says things will change dramatically during the course of this decade. Brazil, Mexico, Turkey, Russia and India are now seen as countries with tremendous potential.

Oddly enough, China has not taken off even though it is the world’s largest car market today. ALD started operations there in 2005 - around the same time as India. Yet, the country accounts for only 1,500 cars. “China is still five years behind India because the company car market has not developed. Only the top management gets a vehicle,” Albertsen says. He also believes India will catch up with Russia (which is comfortably ahead now) and actually beat it in five years.

Admitting that the market here is “not where it should be,” Albertsen says the time has come to take business to the next level.

Indian companies are going global and increasingly seeking ALD’s leasing services in other countries. In addition, the SME (small and medium enterprise) market here is promising. “We need to target them as they are critical growth drivers,” he says.

Suvajit Karmakar, CEO of ALD’s Indian operations, says it is important to reach out to SMEs and explain the benefits of leasing, especially from the viewpoint of better cash flows. “We are seeing a good response to this effort,” he points out.

According to him, in the West, mobility is imperative for sales personnel, rather than for the CEO. In India, conventional hierarchy allows the top management a car while the sales team uses public transport.

Karmakar makes an interesting point on some Indian pharmaceutical companies with operations in Russia. “They give cars to each of their medical representatives in the country while it is the exact opposite in India, where only the senior management is entitled to this, ” he says.

However, things are gradually changing. “We are seeing a trend where companies are leasing cars for their sales people because they realise employee retention is important,” Karmakar says.

Another critical customer base for ALD in India comprises agriculture companies whose operations are largely in rural areas and employees “cannot wait forever for a bus”. This perhaps explains why ALD has a sizable fleet in Andhra Pradesh, which is home to many agriculture ventures.

AP gets 3rd national investment, manufacturing zone

Hyderabad: Andhra Pradesh will get its third National Investment Manufacturing Zone (NIMZ) in Prakasam district.

“Andhra Pradesh will be the second state in the country to have more than two NIMZs being set up in line with National Manufacturing Policy of 2011,’’ Anand Sharma, Union Minister for Commerce told newspersons here on Saturday.

The other two zones are being set up in Medak and Chittor districts.

With this, the total number of zones being set up would go to 13 in the country. A host of incentives such as exemption from capital gains tax and liberalised labour and environmental norms are being offered to these zones.

When asked on the investments being mobilised under the initiative, the Minister said its quantification could not be done at this juncture.

“We have made good progress over last year. Japan, Germany, the UK, Russia and China have shown keen interest in investing and things are moving towards paper work,’’ he said.

To create necessary talent for increasing exports an Indian Institute of Foreign Trade would be set up in Visakhapatnam besides a world pharma trade centre at Hyderabad, he added.

Earlier, while speaking after laying the foundation stone for the National Institute of Design at Gachibowli here, Sharma said job-creation was a priority.

“Services sector cannot grow beyond a point. Given the fact that over 150 million youth will be joining the workforce by 2025, jobs will come only from manufacturing sector,” he added.

Indo-Dutch agri initiative plans 10 centres of excellence

New Delhi: The Indo-Dutch joint initiative in agriculture envisages setting up about 10 centres of excellence (CoEs) in Punjab, Gujarat, Kerala, Maharashtra and Karnataka in the next few years, a move that could help raise output and yields.

dairy, banana
Of this, three CoEs are to come up in the dairy sector in Kerala, Punjab and Gujarat, showcasing the latest processing technologies.

Four CoEs are to be set up in horticulture in Maharashtra, Karnataka, Gujarat and Punjab.

“One centre each for piggery and banana ripening will be set up in Kerala,” said Arie Veldhuizen, Counsellor for Agriculture, Embassy of the Netherlands, in New Delhi.

Speaking to reporters on the sidelines of a seminar on ‘How to double food production in five years,’ organised by Confederation of Indian Industry and the Netherlands Embassy, Veldhuizen said the State governments had shown keen interest in setting up these centres.

improving yield
“We will showcase our technology in these centres and see how we can help the Indian farmers in improving the yield,” he added.

Alphonsus Stoelinga, Ambassador of the Netherlands, said India had to intensify its agriculture to enhance output and at the same time prevent losses in the food supply chain.

The joint initiative is all about the Indian and Dutch authorities and the private sector sharing technology know-how and developing skills to double food output here, he added.

Daimler to develop India ops as export hub

Chennai: As part of an integrated Asia strategy, German automobile giant Daimler is developing its Indian commercial vehicle operation as an export hub. Daimler India Commercial Vehicles (DICV), its truck and bus making Indian subsidiary, will export locally assembled trucks from the conglomerate's Mitsubishi Fuso range in 15 markets in Asia and Africa like Indonesia , Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles.

The first export market will be Sri Lanka in June 2013, followed by Bangladesh, Zambia , Kenya and Brunei later this year. DICV launched the local production of its new product range under the Fuso brand on Thursday at its Oragadam plant, near Chennai.

Said Albert Kirchmann, head, Daimler Trucks Asia and president & CEO, Mitsubishi Fuso Truck and Bus Corporation (MFTBC): "We are developing India as an export hub under our Asia strategy. Currently 19 plants across the world produce 1,75,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be our two global competence centers." Although the new lineup will be branded Mitsubishi Fuso in export markets, in India they will be badged Bharat Benz, Daimler's Indian brand. "There will be some product differences too - though they will be from the same platforms , the products will be market specific," said Kirchmann .

India's status as an export hub will also offer the opportunity for global sourcing of components. "We are working on it and India will become more important for parts supply globally as the first and second phase of localization kicks in," said Kirchmann.

Daimler has a range of global brands including Mitsubishi Fuso in its truck and bus stable. However, said Kirchmann, there are no plans to introduce any of those brands in India. But, he said, the Actros truck will continue to be branded Mercedes Benz. "It's a high horsepower , high payload, low volume , low localization niche product whereas our Bharat Benz range has 80-90 % local content and targets big volumes so that it can be badged differently," said Marc Llistosella , MD and CEO, DICV. The Fuso range to be manufactured at DICV's Oragadam plant will comprise five models spanning medium/heavyduty (25-49 tonne referred to as 'FJ' , 'FO' & 'FZ' ) and light/ medium-duty (9-16 tonne referred to as 'FA' & 'FI' ).

DICV's truck focus means it's not thinking buses right now. Nor will it even consider the newly introduced category of quadricycle. "Buses for now are not a part of our strategy as we are focussed on truck launches," said Llistosella . "As for quadricycles, that's not even something we're thinking about."

IT spending by banking, securities firms to touch Rs 42,200 crore

Mumbai: Indian banking and securities companies will spend Rs 42,200 crore ($422 billion) on IT products and services in 2013 — a 13 per cent rise from Rs 37,300 crore a year ago.

IT services is the largest overall spending category at Rs 13,200 crore in 2013. This confirms the strong focus on the financial services sector by IT service providers, according to a study by research and analyst firm Gartner.

Software is forecast to achieve the highest growth rate among the top-level IT spending categories at about 18 per cent in 2013. The forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

“The expansion strategy of banks is still paramount in India, as well as in other countries of the APAC region. The Reserve Bank of India is making plans to increase the penetration of banks across the country and even opening up the market to new entrants,” said Gartner Research Director, Vittorio D’Orazio.

“In these cases, the front office technologies for the branch will be very attractive. However, to increase their penetration in India, banks will follow the leverage your customer device (LYCD) trend. This will evolve the relationship between the bank and its customers over the mobile channel without remarkably increasing IT costs. In fact, we see the penetration rates of the smartphone devices in the triple digits range, which is far greater than any branch expansion rate,” D’Orazio said.

Insurers in operation for 3 years eligible to set up foreign office: Irda

Mumbai: Indian insurance companies in operation for at least three years will be eligible for opening offices outside the country. In a set of fresh guidelines, the Insurance Regulatory and Development Authority (Irda) said life insurance, non-life insurance and reinsurance companies should have a net worth of Rs 500 crore, Rs 250 crore and Rs 750 crore, respectively, to apply for opening offices abroad.

According to Irda, the term ‘foreign insurance company’ would mean a company registered outside India, whose paid-up capital was subscribed to by an Indian insurance company. It shall include a foreign subsidiary company wherein the Indian insurance firm has a holding of more than 50 per cent of its paid-up capital or is in a position to control the composition of its board of directors. It shall also include a branch office of the Indian insurance company.

The guidelines said the registered Indian insurance company should not suffer from any adverse report of the authority on its record of regulatory compliances, for three years out of the past five years from the date of application.

The applicants would need to have booked profits for the three years out of the past five years. “Indian insurers should formulate an ‘investment policy’ to suit the scale, nature and area of operations of the foreign branch offices apart from business considerations and submit the same before its board of directors for approval,” Irda said.

Apart from compliance with the host country solvency requirements, Irda has asked the companies to comply with the know your customer (KYC) and anti-money laundering (AML) guidelines.

On a quarterly basis, these insurers should report business numbers of foreign branch offices, claims performance and expenses incurred.

Irda said the company board should be responsible for monitoring the functioning of its foreign operations at regular levels and report to the regulator any event/development, which could impair the functioning of foreign operations.

"Any foreign insurance company with the approval of the Authority shall be closed only with the prior approval of the Authority and subject to compliance of the host country rules and regulations," said Irda.

MSMEs share in exports to grow to 50 per cent by 2017

New Delhi: The contribution of micro, small and medium enterprises (MSME) in India’s total exports in the 12th Five Year Plan (2012-17) is expected to grow to 50 per cent from 36 per cent, according to Mr K H Muniyappa, Minister of State (Independent Charge) for MSME, Government of India.

The growth is expected on back of increasing demand from the western and emerging markets.

MSMEs contribute 8 per cent to India’s gross domestic product (GDP) and 45 per cent to its manufactured output. It provides employment to over 80 million people engaged in over 36 million units, producing more than 6,000 products.

Adequate credit is paramount to the success of micro and small units, said Mr Muniyappa. To ensure better flow of credit to MSMEs by minimising risk perception of banks/ financial institutions in lending without collateral security, the Government is implementing the Credit Guarantee Scheme, further added Mr Muniyappa. The scheme provides guarantee cover of up to 85 per cent on collateral free credit facility and is extended by lending institutions to new and existing units for loans up to Rs 10 million (US$ 179,663).

Till April 2013, more than 1.1 million proposals have been approved under the scheme providing guarantee cover for total sanctioned amount of Rs 54,322 crore (US$ 9.76 billion), said Mr Muniyappa.

Indo-Australia pact to train farm workers

Chennai: India and Australia have signed a memorandum of understanding (MoU) to strengthen cooperation in training farm workers that could grow to 12-15 million in the coming decades. The training will be an industry-oriented one. The MoU was signed between the Agriculture Skills Council of India and AgriFood Skills, Australia. It also aims to set benchmarks for certification and information.

A brainchild of the Prime Ministers of both the countries, the MoU is part of a larger collaboration in other fields such as telecommunication, retail, mining, media and entertainment. Satender Arya, CEO, Agriculture Skill Council of India, and Arthur Belwitt, CEO, Agrifood Skills Australia, signed the partnership pact in the presence of Patrick Suckling and Dilip Chenoy, CEO of the National Skills Development.

Reliance Jio to roll out 4G services in metros by March

Kolkata: Reliance Jio Infocomm, the Telecom arm of Reliance Industries, plans to roll out fourth generation (4G) services in Metros by the end of this financial year. The company aims to do so at affordable prices, a senior executive said here on Wednesday.

“Kolkata will be among the first few cities where we will launch 4G services. The roll-out will happen simultaneously in Delhi, Mumbai and Jamnagar. Our aim is to start 4G services in metros by the end of the first quarter of 2014,” said Tarun Jhunjhunwala, business head and state mentor (East), Reliance Jio. “We want to take this technology to your living room at a very affordable price. We will change the game.”

Jhunjhunwala, however, didn’t provide details of the pricing strategy.

The company might also offer devices supporting 4G services to its customers, at nominal costs. It is in discussions with manufacturers to identify appropriate devices. It is likely 4G services would be available on smartphones, smart televisions, internet dongles and tablets.

To launch 4G services in eastern and northeastern states, the company would invest about Rs 7,000 crore through the next two to three years.

“We plan to invest Rs 3,000 crore in West Bengal. We will also invest Rs 3,000-4,000 crore to launch 4G services in other eastern and northeastern states,” Jhunjhunwala said. He did not disclose the company’s investment plan to roll out 4G services across the country.

In West Bengal, the company plans to lay optical fibre cables across 5,500 km. It would use 3,500 telecom towers to support its 4G services in the state. “The work has already started. We have laid cables across 300 km. We expect to create around 5,000 jobs in West Bengal,” Jhunjhunwala said.

He added Reliance Jio might take on lease 25-30 per cent of its telecom infrastructure requirements from Reliance Communications.

Mumbai best for realty investment

New Delhi: Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent likely in the next five years, according to a study by Knight Frank.

Bangalore and Delhi-National Capital Region (NCR) come second and third on the list, with returns of 12-12 per cent and 8-11 per cent, respectively, according to the report, Top Business Districts in India to invest In.

In Mumbai, central and suburban business district (SBD)-west have grabbed the top two spots, according to Knight Frank.

Office space in Mumbai had more than doubled between 2008 and 2012 from 47.4 million sq ft to 95.1 million sq ft. But demand remained bleak, the report said. Vacancy rose sharply from 4.3 per cent in 2008 to 23.2 per cent in 2012, and office rentals declined 10-40 per cent during this period.

Delhi-NCR was the biggest office market in India with 110 million sq ft, out of which 88 million sq ft was occupied, IT said. Information technology and information technology-enabled services (IT/ITeS); manufacturing; banking, financial services and insurance (BFSI) and other service sectors accounted for 42 per cent, 22 per cent, 15 per cent and 21 per cent, respectively, of the occupied office space. The report covered 33 business districts.

Bangalore was one of the key office markets in southern India. A number of industries such as manufacturing, automobile and biotechnology have a stake in the economy of the city. But the IT/ITeS sector was the primary driver for office space demand, said the report. Of late, online retailing companies such as Amazon, eBay, Flipkart and Snapdeal have turned to Bangalore for their office space requirements.

IT/ ITeS accounted for 57 per cent of the office space in the southern city, followed by BFSI and manufacturing sectors at 18 per cent and 15 per cent, respectively. The office space stock in Bengaluru was 99.3 million sq ft, of which 86.3 million sq ft was occupied. A steadier demand during 2013-17 would ensure that the vacancy level reached 12 per cent by 2017 and rentals continued to be stable without much drastic variations, added the Knight Frank report.

Mobile data usage up 92% as telcos sweeten offers

New Delhi: Mobile data traffic has increased 92 per cent, as telecom companies offer low value packs for adding new users. A study carried out by Nokia Siemens reveals that 3G data consumption has gone up from 338 MB/month in December 2011 to 434 MB/month in December 2012. Data consumption on 2G has gone up from 87 MB to 115 MB during the same period.

“The 3G tariff reduction by operators in mid 2012 led to the significant growth in 3G data consumption across the country. 3G services generated one-third of the total mobile data in the country in the second half of the year — up from one-fourth in the first half,” Nokia Siemens said while releasing the study.

Telecom operators are going the sachet way, launching low-cost packs to woo the new cell phone-Netizen. From one rupee a day to Rs 25 for seven days’ usage, telecom service providers are coming up with novel plans to attract mobile Internet users.

Aircel, Idea Cellular and Vodafone India have launched, or are launching, inexpensive data packs aimed at students and those who have never logged in via their smartphone.

The Nokia Siemens study further reveals that there is a very strong tendency to access mobile data using smartphones. Forty nine per cent of the total data is accessed by smartphone users across the country. Tablet users account for only 3 per cent of data users, mostly concentrated in metro regions. This underscores the need for operators to make networks more smartphone friendly to ensure a better customer experience.

“The fact that data consumption by 3G users has tripled in one year clearly shows the rapid and steady increase in mobile data consumption in India. This translates into the need for high-quality mobile broadband services with improved speed and service quality to satisfy mobile broadband users,” said Sandeep Girotra, head of India region at Nokia Siemens Networks.

The trend in mobile data growth in India is in line with other high growth mobile data markets around the world. According to Nokia Siemens, operators worldwide will need to be prepared to provide 1GB of personalised data per user by 2020.

Govt opens up healthcare to private sector in a big way

Mumbai: The state government has entered into a partnership with global healthcare giant GE Healthcare for setting up advanced diagnostic and imaging facilities in 22 hospitals.

A consortium of Wipro GE Healthcare will run these 24/7 diagnostic facilities.

Patients from below the poverty line, orphan and senior citizens, will get free services at these centres. Also, patients admitted to these hospitals and outpatients can get the services at subsidized rates. But the private partner can charge private patients as per market rates. CM Prithviraj Chavan on Friday announced the arrangement and termed it a giant leap in advancing healthcare to people.

However, questions have been raised that the private partner was being allowed access at dirt-cheap rates. For 10 hospitals in the Marathwada belt, it will be paying the government Rs 22 lakh and Rs 32 lakh for facilities at the remaining 12 hospitals.

Public health minister Suresh Shetty said revenue was never the motivating factor behind the partnership. "Our intention is to provide quality diagnostic services at concessional rates to common citizens." He pointed out that the consortium was selected through a transparent bidding process.

Shetty also said that owing to a dearth of diagnostic facilities, patients from government hospitals were often referred to private clinics and ended up paying more. "A decision to outsource imaging facilities was taken three years ago owing to a dearth of such facilities and shortage of radiologists and technicians. Procurement of modern-day diagnostic facilities on its own would have cost the government Rs 200 crore," Shetty said.

A separate tender will be floated for hospitals in the Vidarbha region, which are not covered under this arrangement.

The public health department has 19 CT scans and X-ray machines at present. It does not have any MRI or mammography machine. Shetty said that the existing facilities will be shifted to rural and peripheral hospitals.

Visa-on-arrival facility to be available at Hyderabad airport

Hyderabad: The Rajiv Gandhi International Airport in Hyderabad is set to offer ‘visa on arrival’ facility, following an approval from the Centre.

International passengers travelling through the airport can now have a more convenient transit with this new offering.

Visitors from 11 countries will be eligible to get a visa on arrival with effect from May 31, an airport spokesman said.

The Government had introduced an Indian tourist visa-on-arrival scheme on January 1, 2010, at certain airports, which was initiated for citizens of five countries. Subsequently, it was extended to 6 more countries.

The ‘tourist visa on arrival’ with a maximum validity of 30 days and single entry facility shall be granted by the immigration officers at the airport to the citizens of 11 countries-- Finland, Japan, Luxembourg, New Zealand, Singapore, Cambodia, Laos, Vietnam, Philippines, Myanmar and Indonesia.

SGK Kishore, CEO-GMR Hyderabad International Airport Ltd, said, "The introduction of this ‘Visa on Arrival’ scheme will facilitate enhanced tourism opportunities to India and specifically to Andhra Pradesh. This initiative by the Government of India will position RGIA as a preferred point of entry for foreign tourists planning to visit India."

This facility falls in line with the airport’s strategy to transform itself into a gateway for passengers from south and central India. Recently, the airport has been ranked No. 2 by the Airport Council International in the Airport Service Quality survey in the 5-15 million passengers per annum category.

The airport was commissioned in March 2008 with an initial capacity of 12 million passengers and 150,000 tonnes of cargo handling capacity per annum. It has the flexibility to increase capacity to accommodate over 40 million passengers.

Gulf Ispat to set up a Rs 3,500 crore integrated steel plant in MP

Bhopal: Gulf Ispat Limited will set up a Rs 3500 crore integrated steel plant in Madhya Pradesh, according to press release here on Monday. Company director Ayush Goyal met MP chief minister Shivraj Singh Chouhan here on Monday. The integrated steel plant would be located at village Ghughra in Jabalpur district.

Chouhan said that investors and investment are welcome in the state. Industry-friendly atmosphere is prevailing in the state. Transparent procedures have been laid down for investors coming to the state. Special attention is paid to ensure that investors do not face any problem.

Along with Goyal, BLA Power managing director Anoop Agrawal also met Chouhan. BLA power has set up a Rs 440 crore 135 MW thermal power plant in village Niwari in Narsinghpur district. It has commenced power generation in May 2012.

StanChart acquires Morgan Stanley’s local wealth business

New Delhi: Standard Chartered Bank will buy US-based Morgan Stanley’s domestic private wealth management business. The deal will be completed by the end of 2013, said Morgan Stanley.

The deal will boost Standard Chartered’s private wealth assets under management by 25 per cent or roughly $750 million (Rs 3,750 crore), a source in the know told Business Standard. The UK bank will buy Morgan Stanley’s private wealth business for about two per cent of its total assets, valuing the transaction at roughly Rs 75 crore, the source said.

A Standard Chartered spokesperson declined to comment on the financial details. Morgan Stanley officials also did not disclose the particulars. In an emailed statement, the Standard Chartered spokesman said, “The acquisition complements Standard Chartered Bank’s existing private banking onshore business in India.”

Morgan Stanley said the private wealth management business represented less than five per cent of its India revenue in 2012. The US bank, which had surrendered its banking licence in India earlier this year, will continue to focus on its core institutional securities, investment banking and asset management businesses in the country, it stated.

Morgan Stanley employs about 400 people across businesses, including capital markets, equity and fixed-income sales and trading, research, asset management and private wealth management. It had set up the wealth management unit about five years earlier. Standard Chartered started its private banking business in India in 2007. Wealth management sector officials said Morgan Stanley’s private banking arm was one of the biggest in India but the business had turned unviable due to high costs and absence of commensurate revenues.

Many companies, including foreign investment banks, have been pruning or selling their wealth management business in India and Asia in recent months. Private banks, which came to India on the expectation that they would grow 20 per cent every year by servicing the nation’s growing rich, have been disappointed at the pace of growth.

In October last year, Switzerland’s Julius Baer Group announced the acquisition of Bank of America’s wealth management businesses outside America.

It is not clear whether Standard Chartered would absorb all of Morgan Stanley’s wealth management executives as part of the deal. Wealth management officials said it would be imperative for the UK Bank to retain the staff, as relationship managers will be important for bringing in a major chunk of the assets of Morgan Stanley’s wealth management division.

Earlier, L&T Finance, a unit of engineering conglomerate Larsen & Toubro, was in talks to buy out Morgan Stanley’s wealth management business. The talks fell through, as L&T did not agree on the price Morgan Stanley wanted, said a person familiar with the matter.

Hexaware sets up onshore delivery centre in Texas

Mumbai: Mid-size IT solutions company Hexaware Technologies has set up an onshore delivery centre in Texas, US.

The centre, which has a capacity of 150 engineers, will support clients in all major services lines offered by the company.

Hexaware has commenced operations with two anchor customers in the banking and financial services domain, the company said in a press statement.

The company will commence recruitment from engineering schools next year for the centre. Hiring of experienced professionals will continue on an on-going basis from the local market, the statement said.

“Dallas is recognised as one of the fastest growing hubs for the hi-tech industry, providing us with access to a great talent pool to add to our global human capital,” said P.R. Chandrasekar, Chief Executive Officer & Vice Chairman, Hexaware Technologies.

The Texas centre will be the company’s third onshore delivery centre in the US. It already operates two centres in New Jersey.

India and United Kingdom sign MoU on cooperation in health sector

New Delhi: Union Minister of Health & Family Welfare India, ShriGhulamNabi Azad and Secretary of State for Health, UK, Mr. Jeremy Richard Hunt signed an MOU on cooperation in the field of health sector last evening at Geneva between the Government of India and the Government of the United Kingdom of Great Britain and Northern Ireland.

Describing the agreement as a historic event and a great milestone, Shri Azad noted with optimism that this agreement is going to usher in a new era of cooperation in the health sector between the two countries.

Shri Azad stated that the agreement between India and UK will promote wide-ranging cooperation in the health sector between the two countries and spur the exchange of information and expertise for the common good of people.

The areas identified for cooperation in the MOU include:

Promoting exchange on healthcare policy in India and the UK;
Human resources for Health;
Regulatory issues;
Health technology development:
Primary healthcare;
Strengthening of public infrastructure and capacity;
Health security, including cooperation on infectious diseases, emerging infections and drug resistance.
It is worthwhile to mention that India is a strategic partner to the UK and has been a recipient of UK’s bilateral assistance in the form of grants since 1975. The aid agency of the UK is Department for International Development (DFID). The priority for the DFID (UK)- Government of India partnership has been improvement of maternal & child health and reducing the burden of communicable diseases.

Shri Azad also noted with satisfaction that Department of Health Research, GOI and National Institute of Clinical Excellence (NICE), UK are in the process of signing an agreement for collaboration in areas relating to medical and health technology assessment.

Recalling the historic relations that the two countries share, Sh Azad noted that the signing of this agreement demonstrates the commitment of both the countries to work closely with each other to further cement their strong relations.

India, China set $100-bn target for FY15

New Delhi: The Indian and Chinese governments agreed today to scale up two-way trade to $100 billion by 2015 from $67.8 bn in 2012-13.

Bilateral trade went from $2.1 bn in 2001-02 to $75.6 bn in 2011-12; it then came down to $67.8 bn during 2012-13. Simultaneously, India’s trade deficit increased from $1.1 bn in 2001-02 to $40.8 bn in 2012-13. In 2012-13, China became India’s fourth largest trading partner from third largest in 2011-2012. Our exports fell from $18.1 bn in 2011-12 to $13.5 bn in 2012-13.

The surging deficit is a big cause of concern and Commerce and Industry Minister Anand Sharma took up the matter with Chinese counterpart Gao Hucheng. Sharma today urged greater work on some of the steps suggested in the earlier communiqué issued by the Premiers of the two governments, to allow our exports to increase.

In 2010, both sides had set a trade turnover target of $60 bn, which was achieved. However, India was not able increase its exports to China, while imports from there kept rising. The only exception was in 2012-13, when imports from China fell to $54.3 bn from $57.5 bn in FY2012.

The joint communiqué issued then had suggested measures for India to increase its exports, including enhancing exchange and cooperation in pharmaceutical products, stronger relationships between information technology (IT) companies, and speedier completion of phyto-sanitary negotiations on agro products.

“Targets do get achieved but that always happens in their (China’s) favour,” said Biswajit Dhar of Delhi-based think tank RIS. “This is now an opportunity for us to pull up our socks and look at the Chinese market seriously, and understand areas where they need us. We must realise that China is gradually becoming a high-cost economy, and there are labour and wage issues that are affecting their market. Indian industry has to stop being defensive and work out a well-thought strategy.”

According to exporters, increasing of market access to China is vital for a jump in India’s exports as the country endeavours to change its export profile from raw materials to finished and value-added products.

“While bilateral trade of $100 bn by 2015 is within the realm of reality, I would like India’s exports to touch $40 bn by 2015, so as to bring the trade deficit within a narrow zone,” said M Rafeeque Ahmed, president, Federation of Indian Export Organisations.

An India-China CEOs’ Forum has been constituted to deliberate on business issues and make recommendations on expansion of trade and investment cooperation. The India side would be chaired by Anil Ambani, chairman, Reliance ADAG Group. Chen Yuan, chairman of the China Development Bank will head the other side.

For five years, India had been making efforts to enter the Chinese IT and pharmaceuticals sectors. However, Indian IT faces problems in work permits and business tax regulations. In pharma, too, Indian industry faces several barriers in the form of delay in approvals and a complex registration process.

To address the trade deficit issue, both sides today signed three agreements, on buffalo meat, fisheries and pharmaceuticals, and one agreement on feed and feed ingredients. The export of buffalo meat had not been allowed from India to China and this has been a long-pending issue. With the resumption, India hopes a big merchandise flow would be helpful in reducing trade imbalance.

Harvard University students to get tips from Indian public enterprises

New Delhi: Students at the prestigious Harvard University will soon get tips on becoming socially responsible corporate citizens from Indian Central Public Sector Enterprises.

The Department of Public Enterprises (DPE) has been invited to a talk on the new guidelines on ‘Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises’, which came into effect from April 1. A Joint Secretary in the department, Ashok Pavadia, will do the honours on May 23.

Confirming the development, O.P. Rawat, Secretary in the department, told Business Line, “Corporate social behaviour is key to corporate social responsibility and a part of the net profit (for CSR activities) is just a component of the entire CSR exercise.”

This is a shift from the previous guidelines, which focussed on CSR activities for external stakeholders, that is addressing social causes and environmental concerns through CSR projects funded by an earmarked budget.

Earlier, CSR and sustainable development were treated as separate subjects, posing practical difficulties for companies. Now, keeping in line with international practice, these two have been clubbed together.

Now the thrust of CSR and sustainability is on capacity building, empowerment of communities, inclusive socio-economic growth, environment protection, promotion of green and energy-efficient technologies, development of backward regions, and uplift of the marginalised and under-privileged sections of the society.

Major project
Also, Central enterprises will have to mandatorily take up at least one major project for development of a backward district. This has the potential of contributing significantly to socio-economic growth in all backward regions in the long run.

For CSR activities, the World Bank has been providing technical support to DPE in areas such as capacity building, sharing of international best practices and advocacy. This has helped include strategic philanthropy, sustainability and creating shared value, with CSR being made part of business strategy.

“Corporate social responsibility is not just about writing a cheque of a fixed amount. It has many dimensions. These include actual change in the lives of the people through contributing to human development and social inclusion,” Shabnam Sinha, Senior Education and Institutional Development Specialist with the World Bank, said.

Sinha complimented the CSR activities by some Central enterprises such as NMDC, GAIL, ONGC and Rashtriya Chemicals and Fertilisers.

Dutch firm Coram to use India as base

New Delhi: Coram International, the Netherlands-based coordinated design bathroom company, is set to start operations in India from July this year.

The company, which set up a wholly-owned subsidiary in India in 2012, also has plans to set up a manufacturing facility for its flagship products in India, which is identified as the “sweet spot” for Coram. “There is good potential. But we would put up the plant once there is certain scale. India is likely to emerge as the manufacturing base for our operations in Asia over the next few years,” said Niels Pilaar, CEO, Coram International.

Huge population, coupled with affinity towards European designs, are the key reasons why Coram has decided to shift focus to India, said Pilaar. “Europe has become saturated and is declining as a market. Though China has the advantage of being the world’s largest population, it is not an easy market because of excessive Government interference,” he added.

The company would require about $10 million to set up a manufacturing unit which can be expanded depending on requirement. “The investment in India for a possible manufacturing unit is yet to be firmed up. It would depend on the time and scale. However, investments would come from the parent firm,” said the CEO.

India would be the first country outside Europe where Coram is planning to establish a manufacturing facility. At present, it has production units in Holland, Poland, the

UK, Germany, France and Italy. It also has an assembly unit in Malaysia. Pilaar said Coram’s India unit could initially target markets like Indonesia and Vietnam.

By July, the company will set up two experience zones, to have direct consumer connect, in Delhi and the National Capital region. Later, it would look at other parts of the country, starting with cities like Ludhiana, targeting bungalows and other residences.

Coram’s Xtreme wellness bathroom set up costs about Rs 15 lakh, while its product range starts from Rs 2 lakh.

Coram offers the coordinated design bathroom solutions with the possibility of added sustainable Xtreme wellness. Pilaar said annual sales of more than 5,000 units would make manufacturing viable in India.

At present, Coram gets about 90 per cent of its revenue from European markets.

ZTE in pact with Calyx to sell smartphones

Pune: Chinese telecom player ZTE Corporation, hitherto a supplier of handsets to mobile operators in India, is entering the Indian open market with smartphones and tablets.

ZTE has entered into an exclusive agreement with Pune-based Calyx Group to market and distribute its products across the country.

Xu Dejun, CEO, ZTE India, said India contributed 10 per cent to the Chinese company’s revenues and was a key growth propeller. “We are now changing our business area,” he said, adding that ZTE was targeting a place amongst the top three players in the Indian smartphones segment in the next three years.

Distribution
With a turnover of Rs 450 crore, the Calyx Group, which has interests in real estate and textiles, said it will invest Rs 500-600 crore in setting up a distribution network to sell mobiles and build the ZTE brand identity.

“We expect to sell a million units during this fiscal,” Gaurav Somani, Executive Director, Calyx Telecommunications, said. The initial plan is to launch five smartphone models priced Rs 5,000 to Rs 15,000, to be followed with high-end tablets around Diwali, Xu said.

India M&A deals record US$ 1.66 billion in April 2013: Grant Thornton

New Delhi: The total mergers and acquisitions (M&A) in April 2013 were valued at US$ 1.66 billion through 39 deals as compared to US$ 1.97 billion by way of 60 transactions during the same period last year, according to the data released by Grant Thornton. There has been a significant increase in inbound deals and this trend is likely to continue in the coming months.

“Cross border deals and in particular inbound deals are seeing strong resurgence. Unilever’s investment announcement preceded the Diageo transaction, which is now in its final legs. These are two significant transactions,” as per Mr Harish HV, Partner, India Leadership Team at Grant Thornton India LLP.

During April 2013, cross border deals were valued at US$ 1,121 million, followed by domestic deals (US$ 488 million) and mergers and internal restructuring at US$ 60 million.

“We expect significant uptick in the inbound arena. Similarly, we are seeing resurgence in outbound transactions and expect to see significant uptick in this area from both, IT and manufacturing sectors,” said Mr Harish.

The deal of the month was Etihad Airways acquiring 24 per cent of Jet Airways for US$ 379 million.

Other major M&A deals in April 2013 include Bharti Airtel, acquiring 100 per cent stake in Bangladesh’s Warid Telecom, followed by Aditya Birla Nuvo selling its carbon black business to group firm SKI Carbon Black for Rs 1,451 crore (US$ 263.70 million) and Qatar-based investment firm Hassad Food buying majority stake in basmati rice company Bush Foods for over US$ 100 million.

“We continue to see Indian corporates focused to divest non-core assets to enhance liquidity such as DLF stake sale in wind power assets for over $ 100 million,” said Mr Raja Lahiri, Partner, Transaction Advisory Services at Grant Thornton India LLP.

The foreign direct investment (FDI) regulatory changes in sectors and government’s push to attract FDI, the Etihad-Jet transaction is good for the aviation sector and we believe that more such inbound deals are expected to play out in sectors such as aviation, retail and broadcasting, added Mr Lahiri.

Anand Sharma meets Japan Prime Minister Shinzo Abe

New Delhi: The Union Minister for Commerce, Industry and Textiles Shri Anand Sharma is on a two-day visit to Tokyo for a comprehensive review of bilateral economic engagement with Japan, ahead of Dr. Manmohan Singh’s visit to Tokyo.

Today, he called upon Japanese PM Mr. Shinzo Abe, and apprised him of the progress made in the implementation of the Delhi Mumbai Industrial Corridor (DMIC) project, which was conceptualised in the 2007 visit of Mr. Abe to India. Mr Abe expressed satisfaction on the amount of work put into the project and mentioned that Japanese companies are looking forward to partner with India in project implementation. Japan has already committed USD 4.5 billion in the first phase of project implementation. The Government of India has committed an equal amount for development of trunk infrastructure for creation of new industrial townships along the corridor. Shri Sharma informed the Japanese Prime Minister that currently Japan has already taken 26% equity in the Delhi Mumbai Industrial Corridor Development Corporation creating a new paradigm of economic cooperation based on collaboration in innovation, technology and manufacturing under the framework of the strategic global partnership between the two countries. Shri Sharma mentioned that India was looking forward to welcoming the Emperor and Empress of Japan to India during this year.

Shri Sharma also met Japanese Foreign Minister Fumio Kishida and expressed satisfaction on the healthy growth of trade after the signing of Comprehensive Economic Partnership Agreement (CEPA) between the two countries. However, he flagged concerns of India relating to mounting trade deficit and specially urged for market access for Indian agricultural and marine produce and Indian pharmaceuticals. The Japanese pharma market is projected to grow to USD 100 billion and Indian generics can play a key role in providing affordable healthcare.

Shri Sharma also met the Japanese Minister of Economy Trade and Industry, Mr. Toshimitsu Motegi, which provided an opportunity for a comprehensive review of the DMIC project including the implementation of the early bird projects.

Top Japanese company CEOs including those from Mitsubishi, Hitachi, New Energy and Industrial Technology Development Organization (NEDO) made a detailed presentation to Shri Sharma on the progress of the project implementation. The CEO of Japan Bank of International Cooperation (JBIC), Mr. Hiroshi Watanabe also met Shri Sharma assuring him of full financial support for the DMICDC project and other infrastructure projects in India.

Manipal Health Enterprises acquires Ankur Healthcare

Bangalore: Manipal Health Enterprises (MHE) has forayed into andrology and reproductive medicine services by acquiring Ankur Healthcare.

Ankur Healthcare is a speciality centre focusing in the areas of reproductive medicine – In Vitro Fertilisation, andrology and men’s Health.

MHE has invested Rs 40 crore so far in this speciality healthcare outfit founded by Vasan S. S., Uro Andrologist, and Bina Vasan, specialist in reproductive medicine, a decade ago. Further, MHE has also committed Rs 3 crore to strengthen its medical infrastructure and plans to bring in Rs 100 crore for expansion in the next three to four years.

“This investment marks the beginning of Manipal’s foray into allied healthcare delivery formats in partnership with established players in specified clinical areas,” said Rajen Padukone, Managing Director and Chief Executive Officer, Manipal Health Enterprises.

The new entity will be called Manipal-Ankur Andrology & Reproductive Services and called so even after Manipal Hospital’s investment. Vasan will lead the new entity as the Chief Executive Officer and Medical Director while Bina will head the Reproductive Medicine Division.

Upgradation of existing facility and creation of new facility at Visakhapatnam Port Trust for iron ore handling

New Delhi: The Cabinet Committee on Economic Affairs has approved the project for upgradation of existing facility and creation of a new facility at Visakhapatnam Port Trust for iron ore handling in two phases on Design, Build, Finance, Operate and Transfer (DBFOT) basis at an estimated cost of Rs. 845.41 crore. The project will be taken up for implementation under Private Public Partnership (PPP) mode on DBFOT basis, that is, the entire investment on the project will be made by the concessionaire.

The project is envisaged to be implemented in two phases. In Phase-l, upgradation of existing mechanized iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs.580.89 crore. This will involve capacity addition of 16.2 MTPA. In Phase II, creation of new mechanized facility at West Quay-1 (WQ-1) berth in inner harbour at an estimated cost of Rs. 264.52 crore involving capacity addition of 6.8 MTPA will be taken up. Phase-ll facility at Inner Harbour would be taken up after attaining the threshold limit of 12.5 million tonnes of cargo handling at Outer Harbour or two million tonnes of cargo handling at Inner Harbour, whichever is earlier. However, there is no bar on the operator to commence Phase - II on the date of award of concession. Phase I of the project will be completed by June 2015 and Phase II, within two years of its commencement.

This project will create additional employment opportunities and lead to the socio-economic development of the region.

Tecpro signs pact with Japanese major for better thermal power tech

Chennai: Chennai-headquartered Tecpro Systems Ltd has entered into an agreement with Mitsubishi Heavy Industries Mechatronics Systems Ltd (MHI) of Japan for technology for manufacturing electro-static precipitators (ESPs) for thermal power projects.

With MHI technology, Tecpro will make the ESPs at its Rs 25-crore plant that is coming up in the Sri City industrial estate near Chennai. The tie-up could potentially result in business prospects of about Rs 500 crore a year, Tecpro Systems’ Chairman and Managing Director, Ajay Kumar Bishnoi, told Business Line today.

Electrostatic precipitators are nothing new in India —all coal-based thermal power projects here are equipped with them.

These are needed to trap and remove particulate matter from the exhaust gases from boilers. So what makes MHI technology any different?

Arvind Bishnoi, Director at Tecpro, observed that there were two major advantages to MHI technology. Typically, an ESP system costs Rs 50 crore. With MHI, the costs would be significantly lower and the size of the equipment much smaller. Second, emissions from their ESP systems will be contained well within the 30 mg/cubic nm norm.

Tecpro mainly offers coal and ash handling systems for thermal power projects. It also provides full ‘balance of plant’ solutions on turnkey basis. In 2012-13, the company was able to book orders worth Rs 2,552 crore. It has orders on hand of around Rs 4,000 crore.

The Sri City plant would be production-ready in a few months and Tecpro Systems has started offering its products from here. It has, for instance, participated in an NTPC tender for two plants of 800 MW each in the Garadwara project.

This is, incidentally, the second tie-up that the Japanese major has entered into with an Indian company recently.

Last month, MHI signed a similar technology agreement with public sector power equipment major BHEL for imparting know-how to make flue-gas desulphurisation systems for power projects.

In FY13, NRI deposits climb 19%

Mumbai: Lured by higher returns offered by banks in their homeland, non-resident Indians (NRIs) placed deposits aggregating $14.18 billion in the financial year ended March 2013, an increase of 19 per cent over the previous year.

In the previous year, NRIs parked deposits aggregating $11.92 billion with banks in India. NRIs placed deposits predominantly in non-resident (external) rupee account or NRE account. NRE deposits with the banking system jumped 85 per cent (rising by $15.81 billion in FY13 compared to $8.53 billion in FY12), according to Reserve Bank of India data.

The attractiveness of NRE deposits lies in the fact that banks quote the same interest rate on these as on domestic deposits. For example, State Bank of India is quoting 8.75 per cent on NRE deposits of one- to 10-year duration. Also, the principal and interest are fully repatriable and the interest earned is exempt from Indian income-tax.

“The rising trend in NRE deposits is an indication that the NRIs expect the rupee to appreciate down the line. So, the NRIs are not only gaining by way of interest rate but also on account of favourable exchange rate conversion factor,” said a banker.

In FY13, the banking system’s NRO (non-resident ordinary deposits) shrunk by $1.8 billion (against an accretion of $4 billion). Since NRO deposits are non-repatriable and require submission of tax-residency certificate and self-declaration, bankers say these deposits have become unattractive.

Paraguay keen on partnering India

Chennai: Paraguay hopes to partner with India on a diverse range of industries including natural resources, agriculture and education said the Ambassador of Paraguay to India, Genaro Vicente Pappalardo.

Addressing a meeting organised by the Southern India Chamber of Commerce and Industry, he said the cost of living in Asuncion, the country’s capital, is the lowest among capital cities in the world. Paraguay has also business-friendly policies and easy to settle in.

Education is an important area with its young population going out to study in Europe and the US. Also in the last three decades, Paraguay has set up more than 50 universities.

R. Thandavan, Vice-Chancellor, University of Madras, said the institution set up in 1857 has tie-ups with over 200 universities across the globe and is keen to partner with its counterparts in Paraguay.

Student and faculty exchange and research collaborations could be explored, he said

InOpen Technologies ties up with Japanese firm

Bangalore: Education content maker InOpen Technologies is partnering with a Japanese firm to deliver game-based computer science lessons to students in Silicon Valley schools. The IIT-Bombay incubated company has entered into a partnership with education company Benesse Holdings, to take its product, Computer Masti, to global markets.

"We will pilot the programme in seven Silicon Valley schools in the coming academic year," said Rupesh Shah, co-founder and CEO of Inopen. "We hope to later take the programme to other schools in the US, to the UK and Europe."

Masahiro Yachi, a researcher at Benesse Corporation where he coordinates business-academia collaboration, said it was InOpen's extensive curriculum that led to the partnership. "Computer Masti already has a year-long curriculum for 1 to 8 graders. Even in the US, we see few textbooks that cover that range," said Yachi.

The increasing thrust on online and technology-based education, say industry analysts, is opening up markets for Indian ventures. "The gamification of education and other innovations are still nascent, so quality solutions will find a market," said Chandramouli CS, a director at advisory firm Zinnov.

A few other Indian startups are taking the mobile application route to target global markets. June Software, which was incubated in Silicon Valley's Y Combinator, has created game-based apps for geography, maths and vocabulary under the brand name TapToLearn. The apps are being used in 1000 schools in the US, India and other countries.

InOpen, which is targetting 11 crore in revenue in FY14, is running this programme in 200 private schools in India and 30 gover ment-aided schools in Maharashtra. The company is also providing this training to around 4 lakh government school students in Assam.

Baring Pvt Equity picks up 14% stake in Lafarge Indian unit

Mumbai: In what is being termed the largest private equity investment in the cement sector, Baring Private Equity Asia has picked up a 14 per cent minority stake in the India unit of cement major Lafarge for € 200 million (around Rs 1,427 crore).

The deal values the Indian arm at $1.86 billion.

The transaction through capital increase is subject to approval of the regulatory authorities.

It is set to accelerate Lafarge's growth plans in India in all its product lines such as cement, aggregates and concrete.

India is the second largest producer of cement after China.

Analysts tracking the company said this would also be the first time a multinational (French cement maker Lafarge SA) has divested a minority stake in its India operations to a private equity (PE) firm to fund growth.

The Lafarge deal tops the $175-million infusion in the unlisted cement business of Dalmia Cement by PE major KKR in 2010.

Lafarge entered the Indian market in 1999 through its cement business and now operates four cement plants, two in Chhattisgarh and grinding units in Jharkhand and West Bengal.

Growth story
In a statement, the company said the group would continue to grow in India and provide innovative products and solutions to accompany India's urbanisation needs, particularly in the housing and infrastructure sectors.

Incidentally, Lafarge has grown in the country following several acquisitions.

The company started its India operations after buying Tata Steel’s cement business in 1999, and later Raymond’s cement division in 2000.

It had also entered into a deal with Larsen and Toubro.

Bosch Electrical Drives opens bigger facility near Chennai

Chennai: Bosch Electrical Drives India, which makes electrical motors for automobiles, has expanded its production capacity with a larger factory near Chennai.

Addressing media persons to formally announce the inauguration of its 9,000 sq. m factory at Oragadam, the automobile manufacturing hub to the west of the city, its Managing Director, Subramanya Ullal said the unit is about one-third larger than its earlier facility.

The new factory, which it started in March this year, employs over 260 people including 130 workers in production, and will nearly double its work force to about 500 soon. More than 90 per cent of the shop floor workers are women.

The production facility is on 10 acres which offers more scope for expansion. It has invested over Rs 35 crore in land and building, about Rs 85 crore in machinery over the last four years, which have been shifted from the earlier rented facility to the south of Chennai. The company plans to invest an additional Rs 25 crore.

The Bosch Electrical Drives’ sales were about Rs 157 crore last year and will reach about Rs 200 crore in the current year. The market for electrical drives in India is estimated at Rs 800 crore a year. Its motors are used by leading automobile manufacturers including Maruti Suzuki, Hyundai, Renault Nissan, Mahindra and Volkswagen.

Manfred Baden, Executive Vice-President, Electrical Drives, Robert Bosch GmbH, said the €52-billion multinational company in automobile components, energy and building and consumers goods business, sees India as a key market in the Asean region.

India and US identify eight projects in education sector worth US$ 250,000 each

New Delhi: The collaboration between India and the US in the education sector is gaining momentum with the two countries identifying eight joint projects worth US$ 250,000 each.

A total of 125 faculties and another 100 teachers in India have been identified who would be coming to the US for training, said Mr M M Pallam Raju, Union Minister for Human Resources and Development (MHRD), Government of India.

Both the countries have also identified eight joint projects between India and the US under the Obama-Singh initiative with about US$ 250,000 each, the details of which would be announced during the fourth India-US Strategic Dialogue in New Delhi this summer for which the US Secretary of State would travel to India, highlighted Mr Raju.

Mr Raju met Mr Arne Duncan, Education Secretary, US, and discussed issues relating to improvement of school education, teacher educators, assessment of schools and teachers and community participation in school education.

“He (Duncan) was very appreciative of the challenge ahead of us,” added Mr Raju.

Mr Raju also met Mr Mulyani Indrawati, Managing Director, World Bank and discussed issues of primary education in India.

Describing his Washington trip as “very, very fruitful and engaging,” Mr Raju said that he is looking towards much greater cooperation and collaboration from the US in the education sector of India.

Petroleum Minister announces launch of Direct Benefit Transfer for LPG scheme in 20 districts

New Delhi: Government of India is launching Direct Benefit Transfer for LPG (DBTL) scheme in 20 high Aadhaar coverage districts (as annexed) from 1.6.13. The scheme aims to curb leakages and prevent black-marketing and provide subsidy to consumers in their bank accounts.

All LPG consumers are advised to immediately do the following to avail of subsidy in their bank accounts:

Get an Aadhaar number if they don’t have one at Aadhaar enrollment centers.
Open a bank account with Aadhaar number if they do not have one by going to a bank branch with Aadhaar number.
OR
If they already a bank account then link their Aadhaar number with their bank account by visiting their branch or through a request form available with LPG distributors and deposit it in the drop boxes placed at LPG distributors premises.
Provide Aadhaar numbers to LPG distributors for linking with LPG consumer number.
For the benefit of LPG consumers, OMCs have provided the facility on their web-sites to check whether the Aadhaar number has been attached to LPG consumer number/bank account.

For the benefit of LPG consumers, who cannot complete formalities by 1.6.13, a grace period of three months is being given to complete the formalities. After this period, all consumers who have not completed the formality will get LPG cylinders at market price, without any subsidy, till they complete the same.

The salient features of the DBTL scheme are described below:

All LPG consumers desirous of availing subsidy will have to provide the Aadhaar number to Oil Marketing Companies and also to their bank accounts for linking with their LPG consumer numbers and bank accounts respectively.
All Aadhaar linked domestic LPG consumers will get an advance in their bank account as soon as they book the first subsidized cylinder even before delivery. This is to reduce their financial burden when they purchase the first LPG cylinder after launch of scheme at market rate.
As soon as, the first cylinder is delivered to such consumers, subsidy eligible on date of delivery will again get credited in the bank account, which will then be available for the purchase of the next cylinder at market rate.
Thus, subsidy eligible on each such domestic cylinder, up to the cap of 9 cylinders per year will be directly transferred to the Aadhaar enabled bank account of the consumer.
All LPG consumers who are not Aadhaar linked will have three month grace period to link LPG consumer number and bank account with Aadhaar number and during this period they will continue to get the LPG cylinders at subsidized rate, as they are getting today, up to their entitlement.
After the grace period, LPG cylinders will be sold to all domestic LPG consumers at market price. However, the subsidy will be transferred to only those who have linked Aadhaar in LPG database and Bank account. Others will not get any subsidy.
After the grace period, as soon as a consumer links the Aadhaar number to bank account and in LPG database, one-time advance and subsidy transfer will re-commence as per balance entitlement.
Consumers who do not provide Aadhaar will continue to get LPG cylinders at market price.
Annexure

List of 20 DBTL districts

State District
Andhra Pradesh Anantpur
Chittoor
East Godavari
Hyderabad
Ranga Reddy
Daman and Diu Diu
Goa North Goa
Himachal Pradesh Bilaspur
Hamirpur
Mandi
Una
Karnataka Mysore
Tumkur
Kerala Pathanamthitta
Wayanad
Maharashtra Wardha
Pondicherry Pondicherry
Punjab SBS Nagar / Nawanshahar
Madhya Pradesh East Nimar (Khandwa)
Harda

Tiffany may invest Rs 100 cr in diamond unit in Nagpur's SEZ

Mumbai: Premier jeweller Tiffany & Co is planning to set up a diamond processing unit in Maharashtra with an investment of about Rs 100 crore. The unit, spread over two lakh sq ft, would be the first major investment in the country.

The unit would be located inside the Special Economic Zone (SEZ) at the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN), which is spread over 4,354 hectares.

The Maharashtra Airport Development Company (MADC), a special purpose company of the Maharashtra Government, is the project developer.

Senior Marketing Manager of MADC S. Sittarasu told Business Line that his company is in advanced talks with Tiffany for setting up the unit. The plot of land required to set up the unit has been identified and Tiffany could commence construction by January 2014. The company will bring the diamonds by air to Nagpur, process it and then ship it back to various destinations, he said.

Sittarasu said that MADC has assured Tiffany of the security of its precious goods.

MIHAN is an ambitious integrated project of the Maharashtra Government. Nagpur was chosen to set up international aviation hub because of its strategic location.

Numerous flights from US and Europe pass over Nagpur, following which they move on to destinations in South-East Asia and Australia. Once the cargo hub gets developed, planes would be allowed to land there to refill their tanks and also transport the goods produced at the SEZ.

Marketing strategy
Rashmi Upadhya, Associate Director (Strategy) at audit and research firm PwC India, said new multinational companies entering the jewellery market would need to tweak their products and marketing strategy to appeal to the country’s high net-worth individuals .

The Indian luxury market is growing at a compounded annual growth rate of 25 to 30 per cent and jewellery forms the largest segment. It accounts for nearly 50 per cent of the total luxury products sold in the country, she said.

Jaguar Land Rover opens test centre in Dubai

Mumbai: Jaguar Land Rover has enhanced its West Asia test programme by opening a new engineering test centre in Dubai, UAE, to conduct extreme hot weather vehicle research, development and testing.

The new 11,120-sq. ft. facility in the Al Barsha area of Dubai, UAE, is to offer a comprehensive range of tests including durability, calibration and hot weather testing for heat and humidity.

The engineering team at the new centre, which replaces a smaller facility in Dubai, will also test powertrains, chassis and heat and ventilation systems, as well as the off-road and sand-driving capability of Land Rover’s unique terrain response system.

Jaguar Land Rover has a network of five global test facilities at Nurburgring, Germany; Arjeplog, Sweden; Phoenix and International Falls, US, and Dubai, UAE.

Jaguar Land Rover Director of Engineering Technical Services Martyn Hollingsworth said: “Jaguar Land Rover has ambitious plans for growth. Since 2008 we have been investing to enhance our engineering capability.''

The new facility in Dubai is four times the size of the previous test centre and is to enable the company to enhance its testing of future products and technologies.

Robin Colgan, Managing Director, Jaguar Land Rover MENA (Middle East and North Africa), added that Dubai offers some unique and challenging environmental conditions.

Goldman Sachs picks up 49% stake in BPL Med

Mumbai: Global financial powerhouse Goldman Sachs has picked up a 49 per cent stake in Bangalore-based BPL Medical Technologies, the health care arm of BPL Ltd, for Rs 110 crore.

BPL, which was once the market leader in the consumer electronics segment, recently spun off its medical equipment business into a separate entity, potentially opening the gates for private equity investment into this fast-growing segment. In addition to this business, BPL has presence in the smart home equipment, power generation and telecom equipment businesses.

The fresh infusion will be used to further expand the company’s medical device business into areas such as imaging and neo-natal care. Established in 1963, BPL started

manufacturing precision electrical instrumentation and diversified into medical devices in 1967. Over its 46-year history, BPL has developed a strong brand and a robust distribution and service network for the medical device business.

BPL currently has a turnover of Rs 100 crore and is operationally profitable, but due to legacy debt issues, it has been posting losses for the past many years.

“We are keen to partner with Goldman Sachs to expand our product range and geographic footprint. Goldman Sachs brings a global perspective, coupled with extensive experience investing in India,” said Ajit Nambiar, chairman and managing director of BPL.

Added Ankur Sahu, co-head of private equity in Asia at Goldman Sachs: “This investment reflects our continued focus on the Indian health care sector, where we will continue to fund segments. Leveraging our global health care expertise and relationships, we are excited to partner with the BPL group.” Sahu and Harsh Nanda, an executive director at Goldman Sachs, will join the board of BPL Med.

Goldman is an active investor in India. Since 2006, the firm has deployed more than $2 billion (Rs 10,950 crore on Monday) in the country. Globally, Goldman has invested over $8 billion in the health care sector spread across 30 companies, including Biomet, iHealth Technologies and AssuraMed in the US; Mindray Medical and iKang Guobin in China and Nova Medical Centers and Max India locally.

BPL currently has a turnover of Rs 100 crore and is operationally profitable, but due to legacy debt issues, it has been posting losses for the past many years. BPL, however, during the past two quarters has managed to settle the long-standing legacy debt issues consolidated with Deutsche Bank by hiving off majority of its expansive land bank.

In addition to the medical equipment business, BPL is in the final stages of setting up its thermal power plant in Andhra Pradesh and this vertical is expected to start contributing to revenues by 2015-16. It is understood that BPL is exploring an option of divesting stake in this project, in which the company has invested close to Rs 150 crore as equity.

BPL is also betting on another sector — smart home solutions. "We are among the early movers in this segment, and going forward, solutions such as the ones provided by us will be a standard fittment in most of the residential flats,” a senior company executive said.

Nasscom targets $10 billion from software products by 2020

Bangalore: India's information technology industry body Nasscom has created a separate unit to drive its newfound enthusiasm for software products, and has set a target of increasing by nearly five-fold revenues from products by 2020.

The product council of the National Association of Software and Services Companies will be chaired by Ravi Gururaj, a serial entrepreneur who is the cofounder of a seed-stage angel fund Frictionless Ventures. The formation of a product council is one of the measures proposed by a committee headed by NR Narayana Murthy, the chief mentor of Infosys. The panel was established to bring Nasscom up to date with the current needs of the industry.

In 2012-13, Indian software products notched up around $2.2 billion (Rs 12,000 crore) in revenue, of which 30% came from the domestic market. The aim is for $10 billion (Rs 55,000 crore) in sales by 2020.

"Product companies and startups are the next growth engines for the industry," said Krishnakumar Natarajan, Nasscom chariman and CEO of software firm Mindtree. Nasscom, which represents India's $108 billion (Rs 5.9 lakh crore) software services sector, has been facing criticism from smaller and newer members for its inability to adequately address the aspirations of software product companies. In February, around 30 product companies formed a separate grouping called Indian Software Product Round Table (iSpirt). "We are a think-tank; we frame policies. As a trade body, Nasscom can lobby with the government to make them happen," said Sharad Sharma, one of the founder-members of iSpirt, welcoming Nasscom's move.

A survey of 100 product companies by Nasscom found that 68% felt market access and customer acquisition were key concerns. Raising funds and other capital related issues came second, followed by finding the right talent and scaling operations. Gururaj said the Nasscom product council would help in establishing large one, with small and medium businesses adopting locallydeveloped software products.

Areas such as cloud, softwareas-a-service, big data and analytics, social and mobility are large global opportunities.

"Technology is getting consumerised and this is where the numbers are," said Som Mittal, Nasscom's president. "If you solve a problem, you have a ready market," he observed, citing InMobi, Zoho and Slideshare as examples.

India's entry into Europe club to help SMEs expand footprint

New Delhi: India has become a member of the Enterprise Europe Network (EEN) - the 54th country to do so - in a bid to facilitate the flow of trade, investment and technology between SMEs in India and the European Union (EU), according to a recent issue of the CII newsletter, MSME Business.

The EEN works through local business organisations to help SMEs make the most of the European marketplace. India's entry into the EEN will give the country's SMEs access to Europe's large database of cutting-edge technologies, with companies from the 27-member bloc both offering and seeking research and commercial applications in 17 sectors, including agro-food, automotive, transportation and logistics, biotech and health care.

The EU has been a difficult market for Indian SMEs, given its complexities, stringent rules and protectionist tendencies, but India's membership of the EEN is expected to make a difference. CII, along with the European Business and Technology Centre (EBTC) and the Federation of Indian Export Organisations are partners in this initiative, and contact points for Indian SMEs.

The network serves as a one-stop shop for enterprises looking to go global with their innovative ideas. The EEN can provide insights on sources of venture capital and loans; the best way to sell a business plan to investors; getting aid from regional, national or EU authorities; and accessing public funds and grants for research and development.

The EEN's business cooperation database of some 23,000 profiles and business support organisations from 54 countries enables SMEs to utilise it to search for international business partners and sourcing new technologies and advisory services on issues such as intellectual property, going international, or EU laws and standards. The network ensures that SMEs looking to expand their business to another country find competent and trustworthy partners, as well as assess how EU laws and regulations affect businesses.

Essel Pallavapuram bags Rs 100-cr waste management project

New Delhi: Essel Pallavapuram and Tambaram MSW Private Ltd (EPTMPL) will set up a Rs 100-crore municipal solid waste management project to handle household waste generated in Pallavaram and Tambaram municipalities.

The company bagged the contract from Pallavaram Municipality to set up the integrated municipal solid waste management project in a Public-Private Partnership (PPP).

Clean energy
The waste management plant will come up at Vengadamangalam on a Design, Build, Operate and Transfer (DBOT) basis.

Essel Pallavapuram will treat 300 tonnes of municipal solid waste daily and handle the operations and maintenance for 20 years. The plant is expected to be commissioned by April 2014. The project includes a 2.9-MW waste to energy project and disposal of waste from 3.5 lakh households.

It will use biological treatment, non-incineration-based waste-to-energy technology, construct a transfer station-cum-material recovery facility in Ganapathipuram and Kannadapalayam using technologies to generate refuse-derived fuel and eco-bricks from inert materials and organic compost at the processing facility.

The company will also take up the scientific closure of the existing dump yard at Ganapathipuram and Kannadapalayam as per MSW rules 2000.

Piramal buys 10% stake in Shriram Transport

Mumbai: Diversified conglomerate Piramal Enterprises on Friday purchased 10 per cent stake in Shriram Transport Finance Company Limited.

Piramal bought 22 million shares of Shriram Transport, part of the $9-billion Shriram Group, in a deal worth Rs 1,652 crore through an open market transaction. Piramal Enterprises bought the stake from private equity major TPG.

Shares of Shriram Transport closed at Rs 760.5, up 3.6 per cent on the BSE. Piramal paid Rs 723 a share, a 1.15 per cent discount to the closing price of Rs 734.1 on Thursday.

In February, TPG sold half of its 20 per cent stake in Shriram Transport to a clutch of institutional investors and raised about $305 million. TPG Capital, through its arm Newbridge India Investments-II, owned 10.07 per cent stake in Shriram Transport before Friday’s sale.

The stake buyout is in line with Piramal’s strategy to strengthen presence in the NBFC business. Ajay Piramal, chairman, Piramal Enterprises, said, “We took interest in this company because we are interested in the financial services sector. We have made a significant investment already with our NBFC which is lending on Friday to real estate.”

Piramal has an NBFC, with a loan book of Rs 1,000 crore, focused on real estate, education-related infrastructure and medical equipment. The cash-rich group recently struck deals with infrastructure company Navayuga Road Projects and renewable energy firm Green Infra. Piramal Enterprises also bought 11 per cent stake in Vodafone India, the second largest telecom firm in the country by revenues, for Rs 5,863 crore last year.

Shriram Transport, one of India’s largest player in commercial vehicle finance, had revenues of Rs 7,014 crore and net profit of Rs 1,463 crore for the financial year ended March 31. The company had assets of over Rs 52,717 crore under management as of March 31, 2013.

Piramal said, “We believe in the strategy of the company and we are long-term investors in this. We were till now only in the wholesale space. This gives us an exposure to the retail space.” According to him, there is no immediate plan to increase stake in Shriram Transport.

Piramal’s NBFC business is spearheaded by A K Purwar, former chairman of State Bank of India, and Sudha Ravi, who had managed the Washington operations of State Bank of India.

Purwar, who was heading the private equity business of Piramal Group, was recently promoted as head of Piramal Capital, the holding company which runs the finance business of Ajay Piramal Group.

Piramal Group, which sold its domestic pharmaceutical business to Abbott for Rs 17,500 crore, had floated NBFC arm Piramal Finance in 2011.

India Venture Advisors, the private equity arm of Piramal Enterprises Ltd, is raising Rs 1,000 crore for a healthcare-focused fund. India Venture, founded in 2007 by Ajay and Purwar, focuses on health care and life sciences investments.

Tata Power in pact to set up $700 million -hydro power projects in Georgia via JV

New Delhi: Tata Power Co is in pact with Clean Energy Invest AS and IFC InfraVentures to develop two hydro power projects totalling 400 mw in Georgia at an estimated cost of $ 700 million, the Tata group power utility said Friday.

Tata Power and Clean Energy would hold 40% stake each in the joint venture.

The hydro projects would be developed in three phases with the first phase expected to be completed before mid-2016. They will primarily supply electricity to Turkey.

"We are delighted to be broadening our foothold in key international markets through this development. Georgia is a great country to work in and Turkey is a fast evolving energy market in Europe," Anil Sardana, Managing Director, Tata Power, was quoted as saying in a statement.

Tata Power aims to generate 20-25 % of its total generation capacity from clean energy sources. It has an installed generation capacity of 8,521 mw in India and a presence in all the segments of the power sector-- generation (thermal, hydro, solar and wind), transmission, distribution and trading. Tata Power has been exploring opportunities aboard disappointed at the slowdown in the Indian power se

SBI signs pact with Korea bank to support SMEs

New Delhi: State Bank of India has signed a memorandum of understanding with Industrial Bank of Korea to support the business activities of Korean small and medium enterprises entering or already operating in India.

The MoU would assist the Korean companies in meeting their financial requirements from SBI.

Currently, there are 480 Korean SMEs operating in India. Industrial Bank of Korea currently does not have any branch presence in India.

SBI is also setting up a representative office in Seoul. The MoU will help SBI get more Korean business not only for domestic branches, but also in that country.

The MoU was signed last week by Hemant Contractor, Managing Director & Group Executive on behalf of State Bank of India and Jun-Hee Cho, Chairman and Chief Executive Officer of Industrial Bank of Korea.

India in sharp focus at Dubai investment fair

Dubai: A few moves by the RBI to facilitate investments by NRIs as well as by foreign nationals could be a game-changer for those looking to invest in India. Speaking at a seminar at the Business Line Investment Opportunities Fair presented by NSE in Dubai recently, Krishnan Ramachandran, CEO, Barjeel Geojit Securities, said the deregulation of interest rates for NRE accounts in India has allowed NRIs a solid tax-free avenue of investments. The opening of up new avenues for investments, especially for foreign retail investors through the qualified foreign investors (QFI) route, enables them to take direct exposure in the Indian equity and debt markets, where the returns are much higher than in their own domestic markets, he said.

Ramachandran pointed out that almost all nationals from the UAE can now invest directly in Indian markets like any other NRI. He was emphatic that the government can do better if it allowed a freer rein for NRIs to invest. K. Hari, Vice President, National Stock Exchange, who spoke on investor protection for those who trade on the NSE, said the exchange handles 250 million messages and 10 million trades a day. “What this means for an investor, be it an FII or retail investor, if this is the volume of trade that happens, it gives you liquidity and that is best for an investor.”

Usha Martin to invest Rs 30 cr in Thai unit

Kolkata: Steel wire rope maker Usha Martin Ltd will invest Rs 30 crore for the equal joint venture between its existing Thai subsidiary Usha Siam Steel Industries Public Co Ltd and Tesac Wire Rope Co of Japan.

Rajeev Jhawar, MD, Usha Martin, said the construction for the proposed 1,000 tonnes-a-day greenfield facility in Thailand was on and the unit would be in operation by April. Usha Siam has it 3,000-tpd unit in an industrial park off Bangkok. The new unit will also come up in the same area.

At a press conference on Thursday, Jhawar said that Usha Martin was expanding its marketing to Russia, South Africa and Latin America.

The company has two marketing

subsidiaries in Europe and a R&D arm.
At home, its expansion plans are nearing completion. It has commissioned a coke oven battery with 17.5 MW waste heat-recovered power unit in March at its Jamshedpur complex. The second battery along with 17.5 MW unit would be ready by August, he said. “In September, the 1.2-mt pellet plant will be ready,” Jhawar added.

The company reported a net profit of Rs 9 crore in Q4 to March 31, 2013, against Rs 76 lakh in the corresponding quarter in 2011-12. The annual (FY2013) net profit stood at Rs 7.05 crore (net loss of Rs 32.77 crore).

The board recommended dividend of 15 paise a share of Rs 1 each. The stock on Thursday closed at Rs 26.5 on the BSE, up three per cent.