Hyderabad: Real estate consultancy services company Cushman & Wakefield today announced it has entered into an agreement to acquire Singapore-based project management specialist company Project Solution Group (PSG).
This latest acquisition is aligned with the firm's global strategy to strengthen its operations in the Asia-Pacific. When completed, the acquisition will position Cushman & Wakefield as a market leader in Project Management Services.
This acquisition follows Cushman & Wakefield’s announcement earlier this year that it had extended its operations to Taiwan and the Philippines with office openings in Taipei and Manila.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield said: "The acquisition will contribute to C&W India’s project management capabilities and add greater depth and expanse to our service offerings."
Founded in Singapore in 2004, PSG Asia offers professional interior design, project management and construction services to over 40 multinational corporations across the Asia-Pacific.
Headquartered in Singapore, PSG operates from 14 offices in 12 countries with 70 staff in Asia and West Asia.
The company was co-founded by Australian Mike Harrison, who will become the Executive Managing Director of Cushman & Wakefield’s Project Management Services in Asia
Success in my Habit
Sunday, June 30, 2013
Tata launches first white-label ATM
Mumbai: Tata Communications Payment Solutions (TCPS), a wholly owned subsidiary of Tata Communications, today launched first white label ATM (WLA) of the country at Chandrapada, a tier-V town near Mumbai.
It has been branded 'Indicash' by the company.
TCPS has got the license from Reserve Bank of India (RBI) to launch white label ATM operations last month under scheme ‘B’ of the central bank.
In scheme ‘B’ the WLA licensee has to setup a minimum of 5,000 ATMs per year for three years. In this scheme for every two ATMs installed in tier-III to tier-VI centers the company will be able to install one ATM in tier-I and tier-II centers.
The company already operates about 27,000 ATMs for 37 banks in the country. “We look to have 50,000 ATMs including 15,000 WLAs by FY 16” said Sanjeev Patel, chief executive officer, TCPS.
Early this week old generation private sector lender Federal Bank had announced it has signed up as a sponsor bank for TCPS WLAs.
Sponsor bank is the bank which will supply cash to the WLA operator for the ATMs. “We are open to more sponsor banks as it depends on the banks reach in the particular region” Patel added.
“We will leverage Tata group’s retail presence in small centres for the ATMs, however we also would be talking to other corporate houses and government agencies who have vast presence in tier- III to tier-VI centers” said Srinivasa Addepalli, chief strategy officer, Tata Communications.
“Trust is another factor which people look for financial transactions and Tata group does enjoy that trust which will give confidence to people to use Tata ATMs” he said during the presentation at press conference here.
On Tuesday Muthoot Finance, a gold loan company said it had received in principal approval from RBI to set up WLAs
It has been branded 'Indicash' by the company.
TCPS has got the license from Reserve Bank of India (RBI) to launch white label ATM operations last month under scheme ‘B’ of the central bank.
In scheme ‘B’ the WLA licensee has to setup a minimum of 5,000 ATMs per year for three years. In this scheme for every two ATMs installed in tier-III to tier-VI centers the company will be able to install one ATM in tier-I and tier-II centers.
The company already operates about 27,000 ATMs for 37 banks in the country. “We look to have 50,000 ATMs including 15,000 WLAs by FY 16” said Sanjeev Patel, chief executive officer, TCPS.
Early this week old generation private sector lender Federal Bank had announced it has signed up as a sponsor bank for TCPS WLAs.
Sponsor bank is the bank which will supply cash to the WLA operator for the ATMs. “We are open to more sponsor banks as it depends on the banks reach in the particular region” Patel added.
“We will leverage Tata group’s retail presence in small centres for the ATMs, however we also would be talking to other corporate houses and government agencies who have vast presence in tier- III to tier-VI centers” said Srinivasa Addepalli, chief strategy officer, Tata Communications.
“Trust is another factor which people look for financial transactions and Tata group does enjoy that trust which will give confidence to people to use Tata ATMs” he said during the presentation at press conference here.
On Tuesday Muthoot Finance, a gold loan company said it had received in principal approval from RBI to set up WLAs
Gray Matters Capital invests in Unitus Capital
New Delhi: Impact investment bank Unitus Capital has raised an undisclosed sum from a consortium of investors, led by social venture capital firm Gray Matters Capital, the financial services provider to the base-of-the-pyramid population announced on Tuesday.
The proceeds from the second round of institutional funding will be used by the Bangalore-based investment bank to expand its operations in India and South-East Asia, according to Eric Savage, co-founder and president, Unitus Capital.
"Gray Matters Capital's investment is a landmark event for UC. Bob Pattillo is the most active impact investor globally, and we couldn't be more excited to have GMC join our shareholder group," Savage said.
Gray Matters Capital has participated in the capital raising round through its investment firm First Light Ventures. The latter's investment portfolio in India includes domestic services provider Bababjob.com and mobile payment startup Beam Money.
In 2008, Unitus Capital had raised $5.5 million (Rs 32.8 crore).
It also counts William S. Price, the founding partner of global private equity firm TPG, and Steven Funk, founder and chairman of real estate-focused Grand Marais Investments, among its investor list.
The investment bank, which works across sectors including microfinance, renewable energy and healthcare and education, creates financial structures such as non-convertible debentures, securitization and loan portfolio sales, for companies catering to the poor.
It has raised over $75 million of structure products for microfinance institutions such as SKS Microfinance, Janalakshmi Financial Services and Ujjivan Financial Services.
The investment bank has also advised a number of domestic ventures in raising fresh equity capital, including, Bangalore-based Forus Healthcare, which raised $5 million from Accel Partners and IDG Ventures in April last year.
"Because they are in India, and from India, the team at UC can spend time with entrepreneurs and fund managers... It's the difference between incremental increases and quantum leaps in creativity and performance," Robert Pattillo, founder of Gray Matters Capital said
The proceeds from the second round of institutional funding will be used by the Bangalore-based investment bank to expand its operations in India and South-East Asia, according to Eric Savage, co-founder and president, Unitus Capital.
"Gray Matters Capital's investment is a landmark event for UC. Bob Pattillo is the most active impact investor globally, and we couldn't be more excited to have GMC join our shareholder group," Savage said.
Gray Matters Capital has participated in the capital raising round through its investment firm First Light Ventures. The latter's investment portfolio in India includes domestic services provider Bababjob.com and mobile payment startup Beam Money.
In 2008, Unitus Capital had raised $5.5 million (Rs 32.8 crore).
It also counts William S. Price, the founding partner of global private equity firm TPG, and Steven Funk, founder and chairman of real estate-focused Grand Marais Investments, among its investor list.
The investment bank, which works across sectors including microfinance, renewable energy and healthcare and education, creates financial structures such as non-convertible debentures, securitization and loan portfolio sales, for companies catering to the poor.
It has raised over $75 million of structure products for microfinance institutions such as SKS Microfinance, Janalakshmi Financial Services and Ujjivan Financial Services.
The investment bank has also advised a number of domestic ventures in raising fresh equity capital, including, Bangalore-based Forus Healthcare, which raised $5 million from Accel Partners and IDG Ventures in April last year.
"Because they are in India, and from India, the team at UC can spend time with entrepreneurs and fund managers... It's the difference between incremental increases and quantum leaps in creativity and performance," Robert Pattillo, founder of Gray Matters Capital said
India-Israel trade pact will boost volume by $2 b : Envoy
Hyderabad: The India-Israel free trade agreement, which is close to being concluded, will have far reaching implications on both the countries going beyond trade volumes, according to Alon Ushpiz, Israeli Ambassador to India.
Speaking to reporters here, he said that the parleys between the two countries on FTA are currently under way in New Delhi. The agreement is likely to be concluded at the earliest.
“In fact, we were hoping to conclude this a few months ago. The FTA negotiations are pretty complex and take time to conclude as both the parties tend to be firm on their respective stands,” he explained.
The bilateral trade had shot up to about $5 billion in 2011, excluding services, with similar volumes both sides. This registered a slight slowdown in 2012. But the moment the FTA is signed, it could help accelerate trade volumes by at least $2 billion, he said.
IT FUND
Sectors such as information technology, research and development, high-tech areas have immense potential to grow bilaterally. In fact, there have been proposals to set up a separate fund for the IT sector between the two countries to encourage development of products.
Already, several cooperative initiatives are now underway between the two counties and also with some States in the area of agriculture technology, water management, treatment of sewerage and desalination.
ENERGY
Israel has gained considerable expertise in the energy sector, including renewables. We are in talks with the Ministry of New and Renewable Energy and expect to sign an agreement for mutual cooperation for sharing of technology, he said.
Referring to the cooperation in the agriculture sector, he said several projects have been initiated with States focussing on water management and improving productivity. These include technology sharing for production of vegetables, mango, citrus fruits, pomegranates and flowers.
“We are natural friends of water. We can offer technology and share learning with India. This could be through Government, public undertakings and also expertise in the private sector,” he said.
Speaking to reporters here, he said that the parleys between the two countries on FTA are currently under way in New Delhi. The agreement is likely to be concluded at the earliest.
“In fact, we were hoping to conclude this a few months ago. The FTA negotiations are pretty complex and take time to conclude as both the parties tend to be firm on their respective stands,” he explained.
The bilateral trade had shot up to about $5 billion in 2011, excluding services, with similar volumes both sides. This registered a slight slowdown in 2012. But the moment the FTA is signed, it could help accelerate trade volumes by at least $2 billion, he said.
IT FUND
Sectors such as information technology, research and development, high-tech areas have immense potential to grow bilaterally. In fact, there have been proposals to set up a separate fund for the IT sector between the two countries to encourage development of products.
Already, several cooperative initiatives are now underway between the two counties and also with some States in the area of agriculture technology, water management, treatment of sewerage and desalination.
ENERGY
Israel has gained considerable expertise in the energy sector, including renewables. We are in talks with the Ministry of New and Renewable Energy and expect to sign an agreement for mutual cooperation for sharing of technology, he said.
Referring to the cooperation in the agriculture sector, he said several projects have been initiated with States focussing on water management and improving productivity. These include technology sharing for production of vegetables, mango, citrus fruits, pomegranates and flowers.
“We are natural friends of water. We can offer technology and share learning with India. This could be through Government, public undertakings and also expertise in the private sector,” he said.
India-Turkey to enhance cooperation in renewable energy
New Delhi: India and Turkey have agreed to enhance their cooperation in the field of Renewable Energy. This was decided at a meeting held between the Turkish Energy Minister Mr. Taner Yildiz and Dr. Farooq Abdullah, Minister of New and Renewable Energy at Ankara today. Dr. Abdullah is visiting Turkey along with a high level delegation to explore greater opportunities for cooperation and collaboration between Indian and Turkey. Dr. Abdullah briefed his counterpart on the energy situation in India and India’s plans to add over 30 GW of renewable energy to its energy mix in the next 5 years. He also dwelt on the success of the wind programme as well as the significant cost reductions in solar energy through the Jawahar Lal Nehru National Solar Mission (JNNSM).
The Turkish leader said that Ankara hopes to diversify its energy mix by introducing a large component of renewables. It has considerable potential in wind, hydro, solar and geothermal energy. It imports over 90% of its oil, gas and fossil fuel requirement. Mr Yildiz recognized India’s considerable achievements and strengths in renewable energy and noted that India had made large strides in this field. He expressed the Turkish government’s desire to set up large generating as well as manufacturing capacities in renewable energy sources, particularly wind and solar. Dr. Abdullah offered India’s support and expertise to Turkey in setting up projects in wind, solar and hydropower. He also offered training slots in India to Turkish scientists, engineers and technicians through the ITEC programme. The Indian Minister expressed his country’s desire for a serious and meaningful cooperation with Turkey, especially in renewable energy and offered all possible assistance.
The Turkish Foreign Economic Relations Board (DEIK) and the Turkish Confederation of Businessmen and Industrialists (TUSCON) and Federation of Indian Chambers of Commerce and Industry (FICCI) later organized business seminars where business delegations from both countries deliberated in detail on the opportunities and prospects of renewable energy in Turkey. Both sides identified specific areas of scientific cooperation and possibilities of participation in renewable energy projects and investment opportunities.
Earlier in the day, the Minister visited Anitkabir- the Masoleum of Kemal Ataturk, the founder of modern Turkey and paid his respects.
Note: Photographs of the meeting are available on PIB website.
The Turkish leader said that Ankara hopes to diversify its energy mix by introducing a large component of renewables. It has considerable potential in wind, hydro, solar and geothermal energy. It imports over 90% of its oil, gas and fossil fuel requirement. Mr Yildiz recognized India’s considerable achievements and strengths in renewable energy and noted that India had made large strides in this field. He expressed the Turkish government’s desire to set up large generating as well as manufacturing capacities in renewable energy sources, particularly wind and solar. Dr. Abdullah offered India’s support and expertise to Turkey in setting up projects in wind, solar and hydropower. He also offered training slots in India to Turkish scientists, engineers and technicians through the ITEC programme. The Indian Minister expressed his country’s desire for a serious and meaningful cooperation with Turkey, especially in renewable energy and offered all possible assistance.
The Turkish Foreign Economic Relations Board (DEIK) and the Turkish Confederation of Businessmen and Industrialists (TUSCON) and Federation of Indian Chambers of Commerce and Industry (FICCI) later organized business seminars where business delegations from both countries deliberated in detail on the opportunities and prospects of renewable energy in Turkey. Both sides identified specific areas of scientific cooperation and possibilities of participation in renewable energy projects and investment opportunities.
Earlier in the day, the Minister visited Anitkabir- the Masoleum of Kemal Ataturk, the founder of modern Turkey and paid his respects.
Note: Photographs of the meeting are available on PIB website.
Friday, June 28, 2013
Google India ties up with Getit Infomedia
Hyderabad: Google India has tied up with Getit Infomedia to help SMEs in the South to go online.
Google’s Global Channel Sales Managing Director Todd Rows said that the company has so far tied up with 16 partners for this initiative with a total sales force of 3,000.
The company targets to reach out to 10 lakh SMEs. “We have so far covered 2 lakh and will cross 5-lakh mark by 2015,’’ he said.
Google’s Global Channel Sales Managing Director Todd Rows said that the company has so far tied up with 16 partners for this initiative with a total sales force of 3,000.
The company targets to reach out to 10 lakh SMEs. “We have so far covered 2 lakh and will cross 5-lakh mark by 2015,’’ he said.
Tata to execute Rs 70,000-crore infra projects in five years
Mumbai: The Tata Group today announced its three unlisted companies — Tata Housing, Tata Realty and Tata Projects — would execute projects worth at least Rs 70,000 crore in the next five years. These companies have projects worth Rs 15,000-20,000 crore under execution in 2013-14. Figures for the previous years are unavailable.
This is probably for the first time the companies of the group in the infrastructure segment have come together for a unified goal.
A Tata Group senior, who did not wish to be identified, said, “On internal forums, there is a lot more emphasis on the infrastructure business now.” Besides, there is a clear opportunity in the market to be tapped.
“There is a large opportunity for Tata Group companies to participate in sectors such as roads and highways, in which investments are expected to grow at 16 per cent a year,” says Siddhartha Roy, Tata Group’s economic advisor.
Tata Realty and Infrastructure, a wholly owned subsidiary of group holding firm Tata Sons, is scouting for new highway projects to benefit from increasing investment in road infrastructure. It constructed the 110-km Pune-Solapur four-lane project under the National Highways Development Programme this year.
The company acquired three road projects from infrastructure firm IVRCL this year. Now, it is looking at road projects worth Rs 7,500 crore in the next five years. “We are looking for more growth through projects in airport development and urban transport,” said Sanjay G Ubale, managing director and chief executive officer, Tata Realty.
This is probably for the first time the companies of the group in the infrastructure segment have come together for a unified goal.
A Tata Group senior, who did not wish to be identified, said, “On internal forums, there is a lot more emphasis on the infrastructure business now.” Besides, there is a clear opportunity in the market to be tapped.
“There is a large opportunity for Tata Group companies to participate in sectors such as roads and highways, in which investments are expected to grow at 16 per cent a year,” says Siddhartha Roy, Tata Group’s economic advisor.
Tata Realty and Infrastructure, a wholly owned subsidiary of group holding firm Tata Sons, is scouting for new highway projects to benefit from increasing investment in road infrastructure. It constructed the 110-km Pune-Solapur four-lane project under the National Highways Development Programme this year.
The company acquired three road projects from infrastructure firm IVRCL this year. Now, it is looking at road projects worth Rs 7,500 crore in the next five years. “We are looking for more growth through projects in airport development and urban transport,” said Sanjay G Ubale, managing director and chief executive officer, Tata Realty.
Customers Bancorp Inc to invest in Religare Enterprises
New Delhi: US-based Customers Bancorp Inc (CUBI) has agreed to invest $51 million (about Rs 300 crore) in various securities of banking licence aspirant Religare Enterprises Ltd. The investments will take place through a combination of primary and secondary market transactions.
The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.
It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions.
The CUBI Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the company.
Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI guidelines for licensing of new banks in the private sector.
Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt.
“We are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global banking will be extremely supportive in our banking foray. We are confident that the proposed association will further strengthen Religare’s endeavour to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statement on Wednesday.
The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.
It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions.
The CUBI Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the company.
Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI guidelines for licensing of new banks in the private sector.
Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt.
“We are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global banking will be extremely supportive in our banking foray. We are confident that the proposed association will further strengthen Religare’s endeavour to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statement on Wednesday.
Customers Bancorp Inc to invest in Religare Enterprises
New Delhi: US-based Customers Bancorp Inc (CUBI) has agreed to invest $51 million (about Rs 300 crore) in various securities of banking licence aspirant Religare Enterprises Ltd. The investments will take place through a combination of primary and secondary market transactions.
The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.
It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions.
The CUBI Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the company.
Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI guidelines for licensing of new banks in the private sector.
Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt.
“We are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global banking will be extremely supportive in our banking foray. We are confident that the proposed association will further strengthen Religare’s endeavour to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statement on Wednesday.
The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million, investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-million investment in new equity shares to be issued by Religare.
It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions.
The CUBI Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the company.
Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI guidelines for licensing of new banks in the private sector.
Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt.
“We are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global banking will be extremely supportive in our banking foray. We are confident that the proposed association will further strengthen Religare’s endeavour to create a distinctive and diversified financial services conglomerate that believes in the Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statement on Wednesday.
Reliance building on real estate interests in Kenya
Mumbai: Reliance Industries is expanding its presence in the real estate sector in Africa.
In its second major foray, the Mukesh Ambani-owned Reliance Industries has acquired 10 prime plots of land in Kenya’s capital, Nairobi, for around Rs 202 crore ($33.9 million).
The land, which has a developable area of about 1.2 million sq. ft., has been acquired for commercial and residential property development.
Reliance Industries’ (RIL) real estate interests in Africa started around 2008, through Delta Corporation East Africa, a local subsidiary.
According to people familiar with the development, RIL entered Africa’s real estate market with a few small buys. In 2011, the company extended its foray into Kenya’s real estate market with a series of office and residential property developments. The company bought prime plots of land in Nairobi, and developed them for residential and commercial use.
In some instances, it also sold or rented plots to global agencies, private firms and some government organisations.
For the 10 Nairobi plots, Reliance Industries is the major stakeholder with a 60 per cent shareholding, while Delta Corp has a 40 per cent holding.
Through Delta Corporation, RIL is currently building office towers in Nairobi’s Upper Hill and Westlands areas. Delta Corporation is also developing a multi-million dollar residential estate along the Athi River.
Nilesh Shah, executive director, Delta Corporation East Africa, could not be reached for comment.
In a recent annual report, Delta Corporation said it has four projects under development. The company owns around 27.5 acres of land.
Real estate major Knight Frank has ranked Nairobi as the city with the fastest growth rate in rentals for high-end commercial property in 2012.
In its second major foray, the Mukesh Ambani-owned Reliance Industries has acquired 10 prime plots of land in Kenya’s capital, Nairobi, for around Rs 202 crore ($33.9 million).
The land, which has a developable area of about 1.2 million sq. ft., has been acquired for commercial and residential property development.
Reliance Industries’ (RIL) real estate interests in Africa started around 2008, through Delta Corporation East Africa, a local subsidiary.
According to people familiar with the development, RIL entered Africa’s real estate market with a few small buys. In 2011, the company extended its foray into Kenya’s real estate market with a series of office and residential property developments. The company bought prime plots of land in Nairobi, and developed them for residential and commercial use.
In some instances, it also sold or rented plots to global agencies, private firms and some government organisations.
For the 10 Nairobi plots, Reliance Industries is the major stakeholder with a 60 per cent shareholding, while Delta Corp has a 40 per cent holding.
Through Delta Corporation, RIL is currently building office towers in Nairobi’s Upper Hill and Westlands areas. Delta Corporation is also developing a multi-million dollar residential estate along the Athi River.
Nilesh Shah, executive director, Delta Corporation East Africa, could not be reached for comment.
In a recent annual report, Delta Corporation said it has four projects under development. The company owns around 27.5 acres of land.
Real estate major Knight Frank has ranked Nairobi as the city with the fastest growth rate in rentals for high-end commercial property in 2012.
NASA to partner ISRO in India's Mars mission
Mumbai: The US would support India in its much-awaited Rs 450-crore Mars Orbiter Mission (MOM) slated for lift off from Sriharikota in October-November 2013.
"Nasa is providing the deep space navigation and tracking support to this mission during the non-visible period of the Indian Deep Space Network," said a US state department announcement.
The decision to cooperate was taken at the fourth meeting of the US-India joint working group on civil space co-operation held in Washington on March 21. But the details of the meeting were made public on Monday through the US-India joint fact sheet. Its release coincided with the Indo-US Strategic dialogue, and the talks between Isro chairman K Radhakrishnan and Nasa administrator Charles Bolden in New Delhi.
Nasa will provide support from its facilities at Goldstone in the US, Madrid in Spain and Canberra in Australia.
The teaming up for the Mars mission assumes significance in the context of Bolden calling for strengthened co-operation in this programme, when he addressed Isro staffers nationwide on Tuesday afternoon from the Ahmedabad-based Space Applications Centre.
The American state department document also stated that both countries have "agreed to co-operate in potential future missions to the moon and Mars".
Isro officials have not ruled out a second mission to Mars, which they said will have more scientific content. TOI has also learnt that Nasa was keen on participating with Isro in the analysis of data from the Methane Sensor For Mars, which is one of the five instruments on board the present Indian Mars orbiter.
But Isro has not given any firm response so far.
"Nasa is providing the deep space navigation and tracking support to this mission during the non-visible period of the Indian Deep Space Network," said a US state department announcement.
The decision to cooperate was taken at the fourth meeting of the US-India joint working group on civil space co-operation held in Washington on March 21. But the details of the meeting were made public on Monday through the US-India joint fact sheet. Its release coincided with the Indo-US Strategic dialogue, and the talks between Isro chairman K Radhakrishnan and Nasa administrator Charles Bolden in New Delhi.
Nasa will provide support from its facilities at Goldstone in the US, Madrid in Spain and Canberra in Australia.
The teaming up for the Mars mission assumes significance in the context of Bolden calling for strengthened co-operation in this programme, when he addressed Isro staffers nationwide on Tuesday afternoon from the Ahmedabad-based Space Applications Centre.
The American state department document also stated that both countries have "agreed to co-operate in potential future missions to the moon and Mars".
Isro officials have not ruled out a second mission to Mars, which they said will have more scientific content. TOI has also learnt that Nasa was keen on participating with Isro in the analysis of data from the Methane Sensor For Mars, which is one of the five instruments on board the present Indian Mars orbiter.
But Isro has not given any firm response so far.
Oil India, OVL agree to buy stake in Mozambique gas field for $2.47 billion
Mumbai: State exploration firms ONGC and Oil IndiaBSE 2.23 % (OIL) have signed a $2.48-billion deal to acquire 10% stake from Videocon in a giant gas project in Mozambique, which may help ship an estimated 6 million tonnes a year of liquefied natural gas (LNG) to India.
ONGCBSE -0.18 % Videsh (OVL), the overseas arm of the state explorer, said the deal marks its entry into a world-class project with significant upside potential, and would help it achieve long-term production targets of 20 million tonnes of oil equivalent by 2018 and 60 million tonnes by 2030.
"Considering the growing importance of natural gas in the primary energy basket, this acquisition is a significant step by OVL/ONGC group towards the energy security of our country," said OVL Chairman Sudhir Vasudeva.
This is ONGC's third significant global acquisition since it bought Hess Corp's 2.7% stake in Azerbaijan's largest oil field and an associated pipeline for $1 billion. It also signed a deal to buy ConocoPhillips's 8.4% stake in Kazakhstan's Kashagan project for $5 billion last November, but the deal is facing obstacles from China.
Oil India officials said gas from the project would be shipped to India. "Gas production from the Rovuma basin should commence by 2018 with an initial production of 10 million tonnes per annum, which will go up to around 30 mtpa by 2024. So, with our 10% stake now and Bharat Petroleum's 10% stake in the basin, we can easily ship close to 6 mtpa to India," said Oil India CFO T Ananth Kumar.
"Over the next five years, we will be investing an additional $2.5 billion in this project as we will also be partnering in the upcoming LNG infrastructure," he said.
He also said that Oil India will be borrowing abroad to fund this acquisition, "We will be raising around $800 million of the total $1 billion that we will be investing from overseas investors and will exercise the external commercial borrowing option and also launch an overseas bond issue," he added.
"We are satisfied with this valuation, as in the Mozambique energy asset our entire business model was to build value and exit, but this does not mean that we will exit our Brazil assets also. Decision to use this cash to retire our debt will be taken shortly by our advisors Standard Chartered Bank," said VideoconBSE 5.30 % Industries CMD Venugopal Dhoot.
Bankers involved in the transaction lauded the deal. "This is a great transaction and reinforces Videocon's track record of investing in world-class assets across Ravva, Brazil and East Africa. For OVL and OIL, this provides an entry into a very strategic asset," said Gaurav Mehta, Executive Director, UBS, Videocon's Advisor.
"From a logistics point of view, we are the most natural home market for this gas, and that suits the energy security objective of the Indian consortium," said Raj Balakrishnan, head of M&A at Bank of America Merrill Lynch, which advised OVL.
ONGCBSE -0.18 % Videsh (OVL), the overseas arm of the state explorer, said the deal marks its entry into a world-class project with significant upside potential, and would help it achieve long-term production targets of 20 million tonnes of oil equivalent by 2018 and 60 million tonnes by 2030.
"Considering the growing importance of natural gas in the primary energy basket, this acquisition is a significant step by OVL/ONGC group towards the energy security of our country," said OVL Chairman Sudhir Vasudeva.
This is ONGC's third significant global acquisition since it bought Hess Corp's 2.7% stake in Azerbaijan's largest oil field and an associated pipeline for $1 billion. It also signed a deal to buy ConocoPhillips's 8.4% stake in Kazakhstan's Kashagan project for $5 billion last November, but the deal is facing obstacles from China.
Oil India officials said gas from the project would be shipped to India. "Gas production from the Rovuma basin should commence by 2018 with an initial production of 10 million tonnes per annum, which will go up to around 30 mtpa by 2024. So, with our 10% stake now and Bharat Petroleum's 10% stake in the basin, we can easily ship close to 6 mtpa to India," said Oil India CFO T Ananth Kumar.
"Over the next five years, we will be investing an additional $2.5 billion in this project as we will also be partnering in the upcoming LNG infrastructure," he said.
He also said that Oil India will be borrowing abroad to fund this acquisition, "We will be raising around $800 million of the total $1 billion that we will be investing from overseas investors and will exercise the external commercial borrowing option and also launch an overseas bond issue," he added.
"We are satisfied with this valuation, as in the Mozambique energy asset our entire business model was to build value and exit, but this does not mean that we will exit our Brazil assets also. Decision to use this cash to retire our debt will be taken shortly by our advisors Standard Chartered Bank," said VideoconBSE 5.30 % Industries CMD Venugopal Dhoot.
Bankers involved in the transaction lauded the deal. "This is a great transaction and reinforces Videocon's track record of investing in world-class assets across Ravva, Brazil and East Africa. For OVL and OIL, this provides an entry into a very strategic asset," said Gaurav Mehta, Executive Director, UBS, Videocon's Advisor.
"From a logistics point of view, we are the most natural home market for this gas, and that suits the energy security objective of the Indian consortium," said Raj Balakrishnan, head of M&A at Bank of America Merrill Lynch, which advised OVL.
Easier entry, faster registration for foreign institutions
Mumbai: Foreign institutional investors (FIIs) will now be able to enter Indian markets faster and register themselves more quickly with the regulator accepting the recommendations of the Chandrasekhar committee report.
While the time required for registration is supposed to be a week or less, the need for documentation can push it to over six months, according to those in the know. The new norms are expected to significantly reduce the time required to do so. The Securities and Exchange Board of India (Sebi) has given its nod to the suggestions of the committee, which include lower Know Your Client (KYC) requirements for entities backed by governments and doing away with the need for registration with the regulator, according to a press release following a board meeting today.
Sebi has said FIIs, sub-accounts and qualified foreign investors (QFIs) are to be merged into a new investor class to be termed “foreign portfolio investors” (FPIs). Neither FIIs nor their sub-accounts will require prior registration with the regulator. Instead, they would register themselves directly with designated depository participants (DDPs).
The regulator has also adopted a risk-based approach to KYC, dividing it into three categories on the basis of perceived risk. The first will cover organisations backed by the government, such as sovereign wealth fund. The second will cover regulated entities such as foreign mutual funds, while all other entities would fall in the third category.
Also, it has clearly defined foreign direct investment as any investment exceeds 10 per cent stake in the company.
Richie Sancheti, senior associate at Nishith Desai Associates, indicated the move would do much towards rationalisation of foreign inflows.
"The move to harmonise and streamline the KYC norms will ease the process of entry of foreign portfolio investors into India. Sovereign wealth funds and institutional investors can invest more easily on a disintermediated basis. While the complete committee report is awaited, the earlier press release did clarify that other investors that get categorised under category III portfolio investors on the basis of risk weightage, may not be permitted to issue participatory notes,” he said.
Yogesh Chande, consultant, Economic Laws Practice, suggested entities already registered might have some leeway. “It will be good to see how existing FII and FII sub-accounts would glide into the new regime. My sense is, perhaps they will be automatically grandfathered. The risk based-approach to KYC is a welcome move,” he said.
Other recommendations would likely require a move from the government, according to the Sebi statement.
The committee had also suggested the category III entities should not be allowed to issue participatory notes. This did not find a mention in the press release following the Sebi board meet.
While the time required for registration is supposed to be a week or less, the need for documentation can push it to over six months, according to those in the know. The new norms are expected to significantly reduce the time required to do so. The Securities and Exchange Board of India (Sebi) has given its nod to the suggestions of the committee, which include lower Know Your Client (KYC) requirements for entities backed by governments and doing away with the need for registration with the regulator, according to a press release following a board meeting today.
Sebi has said FIIs, sub-accounts and qualified foreign investors (QFIs) are to be merged into a new investor class to be termed “foreign portfolio investors” (FPIs). Neither FIIs nor their sub-accounts will require prior registration with the regulator. Instead, they would register themselves directly with designated depository participants (DDPs).
The regulator has also adopted a risk-based approach to KYC, dividing it into three categories on the basis of perceived risk. The first will cover organisations backed by the government, such as sovereign wealth fund. The second will cover regulated entities such as foreign mutual funds, while all other entities would fall in the third category.
Also, it has clearly defined foreign direct investment as any investment exceeds 10 per cent stake in the company.
Richie Sancheti, senior associate at Nishith Desai Associates, indicated the move would do much towards rationalisation of foreign inflows.
"The move to harmonise and streamline the KYC norms will ease the process of entry of foreign portfolio investors into India. Sovereign wealth funds and institutional investors can invest more easily on a disintermediated basis. While the complete committee report is awaited, the earlier press release did clarify that other investors that get categorised under category III portfolio investors on the basis of risk weightage, may not be permitted to issue participatory notes,” he said.
Yogesh Chande, consultant, Economic Laws Practice, suggested entities already registered might have some leeway. “It will be good to see how existing FII and FII sub-accounts would glide into the new regime. My sense is, perhaps they will be automatically grandfathered. The risk based-approach to KYC is a welcome move,” he said.
Other recommendations would likely require a move from the government, according to the Sebi statement.
The committee had also suggested the category III entities should not be allowed to issue participatory notes. This did not find a mention in the press release following the Sebi board meet.
Govt extends 24x7 Customs clearance for exports
New Delhi: The government will provide Customs clearance for all exports 24x7 from four major airports in Bangalore, Chennai, Delhi and Mumbai from July.
“All exports, including those made under the export incentives scheme as well as duty drawback scheme, will now be able to be move out of the country on a 24x7 basis,” the finance ministry said in a statement.
The expansion of the 24x7 facility at the four major air cargo complexes/airports follows closely on the heels of similar Customs clearance facility for exports under Free Shipping Bills (without claiming export incentives), made available this month at Ahmedabad, Amritsar, Coimbatore, Goa, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Kozhikode, Nashik, Vishakhapatnam and Thiruvananthapuram.
“All exports, including those made under the export incentives scheme as well as duty drawback scheme, will now be able to be move out of the country on a 24x7 basis,” the finance ministry said in a statement.
The expansion of the 24x7 facility at the four major air cargo complexes/airports follows closely on the heels of similar Customs clearance facility for exports under Free Shipping Bills (without claiming export incentives), made available this month at Ahmedabad, Amritsar, Coimbatore, Goa, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Kozhikode, Nashik, Vishakhapatnam and Thiruvananthapuram.
Indo-US higher education dialogue for growing together as two leading knowledge societies of the world
New Delhi: India-U.S. Higher Education Dialogue-2013 was convened on 25th June, 2013 at New Delhi. The Dialogue was Co-Chaired by Minister of Human Resource Development, Dr. M.M. PallamRaju and U.S. Secretary of State Mr. John F. Kerry. The Dialogue is the third major event in a row after the India-US Higher Education Summit held on 13th October, 2011 and the HE Dialogue held on 12th June, 2012 at at Washington DC. The Dialogue was attended by Ms. Tara Sonenshine, US Under Secretary of State, Ms Martha Kanter, US Under Secretary of Education, US Ambassador to India, Ms. Nancy Powell other officials and academics from different institutions and Community Colleges from US side and Mr. Sam Pitroda, Advisor to Prime Minister, Ms. NirupamaRao, Ambassador of India to US, Mr. Ashok Thakur, Secretary, Higher Education, Dr. T. Ramasami, Secretary, Department of Science and Technology and Vice Chancellors, Directors of IITs, other Academics and representatives of industry including CII, FICCI and ASSOCHAM.
Opening the Dialogue along with Secretary Kerry, Minister Dr M. M. PallamRaju emphasized the need to look for and work upon new avenues for collaboration so that the two countries could grow together as two leading knowledge societies in the world.
HRM Dr M. M. PallamRaju said that his vision is to transform the country’s educational institutions into hubs of knowledge creation and promoters of innovation as also provide opportunities to its youth for their skill development and employment. The Minister added that overall during the XII Five Year Plan 2012-2017, we intend to achieve an additional enrolment capacity of 10 million students in higher education including 1 million in open and distance learning so as to raise the country’s Gross Enrolment Ratio (GER) in Higher Education from 18.1% at present to 25.2% by 2017 and reach the target of 30% GER by 2020. HRM also said that skill development and vocational education should be, in his view, an integral part of our education system and the role of business and industry would be of great relevance. He expressed deep satisfaction at the initiatives taken recently and hoped that the Dialogue would provide more opportunities for mutual engagement.
Secretary Kerry in his opening remarks said the two countries need to focus on providing education, skills and cultural values to the children who form the most valuable part of the future world population. He remarked that technology should be used as a tool to instill values in children so that they are able to use the information and education they receive for the betterment of the society and nation building. Secretary Kerry also outlined the contours of the broad relations between the two countries upon which the Higher Education Dialogue need to be carried forward.
The India-US Higher Education dialogue has been very instrumental in strengthening educational Collaborations between the two countries. President Obama and Prime Minister Dr. Singh have termed the collaboration between India and US as “defining partnership of the century” and have outlined that knowledge sharing is an important component of it. The major initiatives include enhanced two-way student mobility, research collaborations, faculty development, collaborations for establishment of Community colleges, collaborations for Cyber Systems, and Technology Enabled Learning including Massive Open On-Line Courses (MOOCs).
The major announcements made during the Dialogue include 8 Joint Research partnerships under Singh-Obama 21st century Knowledge Initiative; announcing the final list of 126 Raman Fellows, supported by the University Grants Commission (UGC), who are ready to travel to US Institutions for Post-Doctoral research and “Connect India” Programme aimed at inviting students from US institutions for short term courses in India. The following four MoUs were also signed during the Dialogue:
1. MoU between IIT Delhi and University of Nebraska on Cyber Systems
2. MoU between IIT Bombay and edX on Massive Open On-Line Courses (MOOCs)
3. MoU between AICTE and American Association of Community Colleges on cooperation for establishment of Community Colleges
4. MoU between ITM Group of Institutions and Montgomery College on Cooperation in Capacity Development
The deliberations in the Dialogue focused on enhancing opportunities for student/scholar mobility and collaboration, Community Colleges and Technology Enabled Learning and Massive open On-Line Courses (MOOCs) during the working sessions Co-Chaired by Mr. Ashok Thakur, Secretary, Higher Education and U.S. Under Secretary of State Ms. Tara Sonenshine.Ways for working together and collaborations were discussed for maximum leveraging of resources, competence and knowledge. Some of the important ideas that emerged from the Dialogue include:
1. Deepen educational relations on a sustainable basis in the areas of skill development, learner centric technology integrated education, building human capital for meeting skill requirements at all levels from elementary to tertiary liberal education and establishing stronger and larger people and institutional linkages, We would upscale the Raman Fellowships to encourage more students for their post- doctoral studies.
2. Create a single-point/ nodal agency in select institutions to meet the needs of international students and facultyto upgrade infrastructure.
3. Workshops to be held to promote Twinning arrangements between Indian and US institutions as per UGC Regulations.
4. Sharing best practices through joint workshops in the collaborative domains of community colleges, vocational education, MOOCs and other models of online education, UGC and AICTE to develop frameworks for using MOOCs.
5. UGC and AICTE to work with their counterparts to embed mechanisms for standard setting and quality assurance mechanisms and vocational education and skills.
6. Greater involvement of industry in both countries to develop strong industry-academia linkages.
7. Develop better understanding of mutual strengths and leverage them to our mutual advantage for sustainable relationships across the three major themes discussed working sessions, i.e. research collaborations and student/ scholar mobility; community colleges; and Technology Enabled Education.
Six students from U.S. and India who are beneficiaries of Passport to India and Fulbright-Nehru Scholarship Programmes also shared their experiences.
The Dialogue, which has now become an annual event along with the India-US Strategic Dialogue, will be taken forward in the coming years for improved relations between India and the United States.
Earlier, before start of the India-US Higher Education Dialogue, HRM Dr. M. M. PallamRaju also had a very fruitful bilateral one-on-one meeting with Secretary of State Mr. John Kerry.
Opening the Dialogue along with Secretary Kerry, Minister Dr M. M. PallamRaju emphasized the need to look for and work upon new avenues for collaboration so that the two countries could grow together as two leading knowledge societies in the world.
HRM Dr M. M. PallamRaju said that his vision is to transform the country’s educational institutions into hubs of knowledge creation and promoters of innovation as also provide opportunities to its youth for their skill development and employment. The Minister added that overall during the XII Five Year Plan 2012-2017, we intend to achieve an additional enrolment capacity of 10 million students in higher education including 1 million in open and distance learning so as to raise the country’s Gross Enrolment Ratio (GER) in Higher Education from 18.1% at present to 25.2% by 2017 and reach the target of 30% GER by 2020. HRM also said that skill development and vocational education should be, in his view, an integral part of our education system and the role of business and industry would be of great relevance. He expressed deep satisfaction at the initiatives taken recently and hoped that the Dialogue would provide more opportunities for mutual engagement.
Secretary Kerry in his opening remarks said the two countries need to focus on providing education, skills and cultural values to the children who form the most valuable part of the future world population. He remarked that technology should be used as a tool to instill values in children so that they are able to use the information and education they receive for the betterment of the society and nation building. Secretary Kerry also outlined the contours of the broad relations between the two countries upon which the Higher Education Dialogue need to be carried forward.
The India-US Higher Education dialogue has been very instrumental in strengthening educational Collaborations between the two countries. President Obama and Prime Minister Dr. Singh have termed the collaboration between India and US as “defining partnership of the century” and have outlined that knowledge sharing is an important component of it. The major initiatives include enhanced two-way student mobility, research collaborations, faculty development, collaborations for establishment of Community colleges, collaborations for Cyber Systems, and Technology Enabled Learning including Massive Open On-Line Courses (MOOCs).
The major announcements made during the Dialogue include 8 Joint Research partnerships under Singh-Obama 21st century Knowledge Initiative; announcing the final list of 126 Raman Fellows, supported by the University Grants Commission (UGC), who are ready to travel to US Institutions for Post-Doctoral research and “Connect India” Programme aimed at inviting students from US institutions for short term courses in India. The following four MoUs were also signed during the Dialogue:
1. MoU between IIT Delhi and University of Nebraska on Cyber Systems
2. MoU between IIT Bombay and edX on Massive Open On-Line Courses (MOOCs)
3. MoU between AICTE and American Association of Community Colleges on cooperation for establishment of Community Colleges
4. MoU between ITM Group of Institutions and Montgomery College on Cooperation in Capacity Development
The deliberations in the Dialogue focused on enhancing opportunities for student/scholar mobility and collaboration, Community Colleges and Technology Enabled Learning and Massive open On-Line Courses (MOOCs) during the working sessions Co-Chaired by Mr. Ashok Thakur, Secretary, Higher Education and U.S. Under Secretary of State Ms. Tara Sonenshine.Ways for working together and collaborations were discussed for maximum leveraging of resources, competence and knowledge. Some of the important ideas that emerged from the Dialogue include:
1. Deepen educational relations on a sustainable basis in the areas of skill development, learner centric technology integrated education, building human capital for meeting skill requirements at all levels from elementary to tertiary liberal education and establishing stronger and larger people and institutional linkages, We would upscale the Raman Fellowships to encourage more students for their post- doctoral studies.
2. Create a single-point/ nodal agency in select institutions to meet the needs of international students and facultyto upgrade infrastructure.
3. Workshops to be held to promote Twinning arrangements between Indian and US institutions as per UGC Regulations.
4. Sharing best practices through joint workshops in the collaborative domains of community colleges, vocational education, MOOCs and other models of online education, UGC and AICTE to develop frameworks for using MOOCs.
5. UGC and AICTE to work with their counterparts to embed mechanisms for standard setting and quality assurance mechanisms and vocational education and skills.
6. Greater involvement of industry in both countries to develop strong industry-academia linkages.
7. Develop better understanding of mutual strengths and leverage them to our mutual advantage for sustainable relationships across the three major themes discussed working sessions, i.e. research collaborations and student/ scholar mobility; community colleges; and Technology Enabled Education.
Six students from U.S. and India who are beneficiaries of Passport to India and Fulbright-Nehru Scholarship Programmes also shared their experiences.
The Dialogue, which has now become an annual event along with the India-US Strategic Dialogue, will be taken forward in the coming years for improved relations between India and the United States.
Earlier, before start of the India-US Higher Education Dialogue, HRM Dr. M. M. PallamRaju also had a very fruitful bilateral one-on-one meeting with Secretary of State Mr. John Kerry.
India, Hungary join hands for 'gas monitoring system'
Gandhinagar: Gujarat Info Petro Ltd, a subsidiary of Gujarat State Petroleum Corporation, has signed an agreement with Cason Engineering Plc, Hungary, in pursuant to the MoU signed during the Vibrant Gujarat Summit-2013, for a gas monitoring system.
The agreement was signed by V. K. Sharma, CEO, Gujarat Info, and Ferenc Szakács, Chairman and CEO of Cason, according to a release here.
Gujarat Info provides IT services to government departments, boards, corporations and corporate houses as an apex consultant and total solutions provider.
User-friendly
Cason is a Hungary-based technology company having experience in developing, manufacturing and implementing systems for gas distribution network monitoring.
It has developed and installed new solutions with leading technologies for large oil pipeline operators in Europe and other countries worldwide.
The agreement aims to provide automation services for gas and oil companies in India.
The joint technical solutions generate easy and fast accessibility to the latest leading technologies for the rapidly developing city gas distributor industry.
Advantages
The main advantages of the offered solutions are to provide tool to control the procurement and sales procedures of daily purchased gas volume and to provide access for stakeholders to the relevant daily business data with technology reports and alarms via Web-based applications.
Safety measures
The consortium will also offer a special pipeline monitoring system and leak detection to leading oil pipeline operators to decrease the number of accidents and incidences such as thefts and pilferages caused by third parties in the pipelines.
This will provide solutions for disaster management and security issues of cross-country pipelines.
The agreement was signed by V. K. Sharma, CEO, Gujarat Info, and Ferenc Szakács, Chairman and CEO of Cason, according to a release here.
Gujarat Info provides IT services to government departments, boards, corporations and corporate houses as an apex consultant and total solutions provider.
User-friendly
Cason is a Hungary-based technology company having experience in developing, manufacturing and implementing systems for gas distribution network monitoring.
It has developed and installed new solutions with leading technologies for large oil pipeline operators in Europe and other countries worldwide.
The agreement aims to provide automation services for gas and oil companies in India.
The joint technical solutions generate easy and fast accessibility to the latest leading technologies for the rapidly developing city gas distributor industry.
Advantages
The main advantages of the offered solutions are to provide tool to control the procurement and sales procedures of daily purchased gas volume and to provide access for stakeholders to the relevant daily business data with technology reports and alarms via Web-based applications.
Safety measures
The consortium will also offer a special pipeline monitoring system and leak detection to leading oil pipeline operators to decrease the number of accidents and incidences such as thefts and pilferages caused by third parties in the pipelines.
This will provide solutions for disaster management and security issues of cross-country pipelines.
Monday, June 24, 2013
Daimler India Commercial Vehicles exports first batch of 64 Fuso trucks to Sri Lanka
Chennai: Daimler India Commercial Vehicles (DICV), a wholly owned subsidiary of German automotive giant Daimler AG, exported the first lot of 64 Fuso trucks manufactured at its Oragadam plant in the outskirts of Chennai. These trucks are headed towards Sri Lanka as part of the company's commitment to export to various countries in Asia and Africa. Last month DICV along with Mitsubishi Fuso Truck and Bus Corporation, another entity of Daimler Trucks based in Japan, launched the new Fuso range of trucks at DICV's plant at Oragadam. The Oragadam plant has been identified by Daimler as one of its production hubs in the Asia-Pac region with significant export commitments.
Said Marc Llistosella, MD & CEO, DICV: "The export of the first Fuso trucks to Sri Lanka is a realisation of our promise to export from DICV, Chennai. The quality standards at our state-of-the-art plant in Chennai combined with the quality of parts from Indian suppliers has made this possible. Going forward, more trucks will be exported to other Asian and African markets." The FUSO trucks range manufactured at DICV's Oragadam plant comprise 5 models spanning medium/heavy-duty (25 - 49 tonne referred to as 'FJ', 'FO' & 'FZ') and light/medium-duty (9 - 16 tonne referred to as 'FA'& 'FI').
DICV will export locally assembled trucks from the Mitsubishi Fuso range to 15 markets in Asia and Africa like Indonesia, Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles. Sri Lanka will be followed by Bangladesh, Zambia, Kenya and Brunei later this year Currently 19 plants across the world produce 175,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be Daimler's 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 Marc Llistosella, MD & CEO, DICV: "The export of the first Fuso trucks to Sri Lanka is a realisation of our promise to export from DICV, Chennai. The quality standards at our state-of-the-art plant in Chennai combined with the quality of parts from Indian suppliers has made this possible. Going forward, more trucks will be exported to other Asian and African markets." The FUSO trucks range manufactured at DICV's Oragadam plant comprise 5 models spanning medium/heavy-duty (25 - 49 tonne referred to as 'FJ', 'FO' & 'FZ') and light/medium-duty (9 - 16 tonne referred to as 'FA'& 'FI').
DICV will export locally assembled trucks from the Mitsubishi Fuso range to 15 markets in Asia and Africa like Indonesia, Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles. Sri Lanka will be followed by Bangladesh, Zambia, Kenya and Brunei later this year Currently 19 plants across the world produce 175,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be Daimler's 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.
ibiboGroup acquires redBus.in at estimated $100 mn
Bengaluru: ibiboGroup, a joint venture between Naspers, a South African media power house, and Chinese internet company Tencent, has acquired Pilani Soft Labs, which has redBus.in as its flagship platform.
The company did not disclose the size of the acquisition but industry sources estimated it at slightly over $100 million (about Rs 600 crore).
Pilani Soft Labs was founded in 2006 by three BITS Pilani graduates - Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri. redBus.in, the company's flagship product today, has grown to become one of the largest bus ticketing platforms, issuing a little over 12 million tickets annually, with around 600 staffers.
In 2011, Pilani had raised $6.5 million in a series-C round of funding from Helion Venture Partners, SeedFund and Inventus Capital Partners.
As per ibiboGroup, the acquisition of redBus will help it to expand and diversify its existing travel assets such as Goibibo.com (online travel aggregators) and TravelBoutiqueOnline (a business-to-business online travel platform for agents). The combined volumes of redBus.in and ibiboGroup's existing travel assets would make the group one of the biggest online travel companies in India.
"This acquisition catapults us to become a stronger online travel player in India," said Ashish Kashyap, chief executive of ibiboGroup. After the acquisition, redBus will continue to run it as an independent operation, he added.
"We are excited to be a part of ibiboGroup. Naspers' strong belief in the internet industry and operating experience in multiple countries will help redBus grow into a renowned brand in the coming years," said Phanindra Sama, co-founder and chief executive of redBus.in.
Apart from, redBus.in, the other products of Pilani, including BOSS, a cloud-based enterprise resource planning software for bus operators and SeatSeller, an inventory distribution platform for agents, will also become part of ibiboGroup.
"We are excited to be a part of ibiboGroup. Naspers' strong belief in the internet industry and operating experience in multiple countries will help redBus grow into a renowned brand in the coming years," said Phanindra Sama, co-founder and chief executive of redBus.in.
Avendus Capital was advisor to both sides for this transaction.
The company did not disclose the size of the acquisition but industry sources estimated it at slightly over $100 million (about Rs 600 crore).
Pilani Soft Labs was founded in 2006 by three BITS Pilani graduates - Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri. redBus.in, the company's flagship product today, has grown to become one of the largest bus ticketing platforms, issuing a little over 12 million tickets annually, with around 600 staffers.
In 2011, Pilani had raised $6.5 million in a series-C round of funding from Helion Venture Partners, SeedFund and Inventus Capital Partners.
As per ibiboGroup, the acquisition of redBus will help it to expand and diversify its existing travel assets such as Goibibo.com (online travel aggregators) and TravelBoutiqueOnline (a business-to-business online travel platform for agents). The combined volumes of redBus.in and ibiboGroup's existing travel assets would make the group one of the biggest online travel companies in India.
"This acquisition catapults us to become a stronger online travel player in India," said Ashish Kashyap, chief executive of ibiboGroup. After the acquisition, redBus will continue to run it as an independent operation, he added.
"We are excited to be a part of ibiboGroup. Naspers' strong belief in the internet industry and operating experience in multiple countries will help redBus grow into a renowned brand in the coming years," said Phanindra Sama, co-founder and chief executive of redBus.in.
Apart from, redBus.in, the other products of Pilani, including BOSS, a cloud-based enterprise resource planning software for bus operators and SeatSeller, an inventory distribution platform for agents, will also become part of ibiboGroup.
"We are excited to be a part of ibiboGroup. Naspers' strong belief in the internet industry and operating experience in multiple countries will help redBus grow into a renowned brand in the coming years," said Phanindra Sama, co-founder and chief executive of redBus.in.
Avendus Capital was advisor to both sides for this transaction.
RBI relaxes norms for residential real estate
Mumbai: The Reserve Bank of India (RBI) has decided to relax norms for residential housing projects by lowering the standard asset provisioning requirement and risk weight for loans given to those projects. The move is aimed at boosting demand for this segment. With risk weight and provisioning requirement coming down, banks will now charge lower interest rates for such loans.
Earlier, residential housing projects were under the commercial real estate (CRE) category, which attracted higher risk weight and standard asset provisioning because the regulator considered it a sensitive sector. Now, RBI has decided to carve out a sub-sector within CRE as Residential Housing (CRE-RH).
CRE-RH would consist of loans to builders and developers for residential housing projects (except for captive consumption).
“As loans to residential housing projects under the commercial real estate sector exhibit lesser risk and volatility than the CRE sector taken as a whole, it has been decided to carve out a separate sub-sector called Commercial Real Estate-Residential Housing,” said RBI.
Loans to the new sub-sector will attract a risk weight of 75 per cent, compared to 100 per cent for CRE. Standard asset provisioning requirement will be 0.75 per cent, compared to 1 per cent in CRE. For individual housing loans, standard asset provisioning is 0.4 per cent, while risk weight is 50 per cent for loans up to Rs 75 lakh and 75 per cent above Rs 75 lakh.
“It's a very good move. Banks will be able to lend more money to developers. It will encourage supply and have cooling impact on prices,” said Rajeev Talwar, executive director, DLF.
RBI also said integrated housing projects comprising some commercial space (shopping complex, school, for example) can also be classified as CRE-RH, provided that the commercial area in the residential housing project does not exceed 10 per cent of the total floor space index (FSI) of the project.
“In case the FSI of the commercial area in the predominantly residential housing complex exceeds the ceiling of 10 per cent, the project loans should be classified as CRE and not CRE-RH,” said RBI.
Some of the realty players, however, have demanded for opening of more sources of funding from RBI.
“It is too small a cut to make any impact. RBI should open other sources of funding,” said Ashish Raheja, managing director of Raheja Universal.
Earlier, residential housing projects were under the commercial real estate (CRE) category, which attracted higher risk weight and standard asset provisioning because the regulator considered it a sensitive sector. Now, RBI has decided to carve out a sub-sector within CRE as Residential Housing (CRE-RH).
CRE-RH would consist of loans to builders and developers for residential housing projects (except for captive consumption).
“As loans to residential housing projects under the commercial real estate sector exhibit lesser risk and volatility than the CRE sector taken as a whole, it has been decided to carve out a separate sub-sector called Commercial Real Estate-Residential Housing,” said RBI.
Loans to the new sub-sector will attract a risk weight of 75 per cent, compared to 100 per cent for CRE. Standard asset provisioning requirement will be 0.75 per cent, compared to 1 per cent in CRE. For individual housing loans, standard asset provisioning is 0.4 per cent, while risk weight is 50 per cent for loans up to Rs 75 lakh and 75 per cent above Rs 75 lakh.
“It's a very good move. Banks will be able to lend more money to developers. It will encourage supply and have cooling impact on prices,” said Rajeev Talwar, executive director, DLF.
RBI also said integrated housing projects comprising some commercial space (shopping complex, school, for example) can also be classified as CRE-RH, provided that the commercial area in the residential housing project does not exceed 10 per cent of the total floor space index (FSI) of the project.
“In case the FSI of the commercial area in the predominantly residential housing complex exceeds the ceiling of 10 per cent, the project loans should be classified as CRE and not CRE-RH,” said RBI.
Some of the realty players, however, have demanded for opening of more sources of funding from RBI.
“It is too small a cut to make any impact. RBI should open other sources of funding,” said Ashish Raheja, managing director of Raheja Universal.
CCEA approves mechanism for coal supply to power producers
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved the following mechanism for supply of coal to power producers:
Coal India Ltd. (CIL) to sign Fuel Supply Agreements (FSA) for a total capacity of 78000 MW including cases of tapering linkage, which are likely to be commissioned by 31.03.2015. Actual coal supplies would however commence when long term Power Purchase Agreements (PPAs) are tied up.
Taking into account the overall domestic availability and actual requirements, FSAs to be signed for domestic coal quantity of 65 percent, 65 percent, 67 percent and 75 percent of Annual Contracted Quantity (ACQ) for the remaining four years of the 12th Five Year Plan.
To meet its balance FSA obligations, CIL may import coal and supply the same to the willing Thermal Power Plants (TPPs) on cost plus basis. TPPs may also import coal themselves. MoC to issue suitable instructions.
Higher cost of imported coal to be considered for pass through as per modalities suggested by CERC. MoC to issue suitable orders supplementing the New Coal Distribution Policy (NCDP). MoP to issue appropriate advisory to CERC/SERCs including modifications if any in the bidding guidelines to enable the appropriate Commissions to decide the pass through of higher cost of imported coal on case to case basis.
Mechanism will be explored to supply coal subject to its availability to the TPPs with 4660 MW capacity and other similar cases which are not having any coal linkage but are likely to be commissioned by 31.03.2015, having long term PPAs and a high Bank exposure and without affecting the above decisions.
Background
A proposal had earlier been moved for approval of CCEA for import of coal by CIL in order to meet the shortfall in the domestic coal requirement of the thermal power plants (TPPs) from time to time.
In the meeting held on 05.02.2013, the CCEA had laid down certain guidelines for import of coal on cost plus basis/pooling of prices and also directed formation of an Inter-Ministerial Committee (IMC) to consider the cases of power plants with aggregate capacity of about 16000 MW which would be commissioned by 31.03.2015 but are not having any linkage for supply of coal. On the basis of the recommendations of IMC, the matter was further considered by CCEA in the meeting held on 22.04.2013. The CCEA inter-alia directed to consider the feasibility of higher cost of imported coal being allowed as a pass through in case of PPAs signed on competitive bid basis.
The revised proposals submitted by Ministry of Coal (MoC) in pursuance of the above directions and in consultation with Ministry of Power and other Ministries were considered by the CCEA at its meeting today.
Coal India Ltd. (CIL) to sign Fuel Supply Agreements (FSA) for a total capacity of 78000 MW including cases of tapering linkage, which are likely to be commissioned by 31.03.2015. Actual coal supplies would however commence when long term Power Purchase Agreements (PPAs) are tied up.
Taking into account the overall domestic availability and actual requirements, FSAs to be signed for domestic coal quantity of 65 percent, 65 percent, 67 percent and 75 percent of Annual Contracted Quantity (ACQ) for the remaining four years of the 12th Five Year Plan.
To meet its balance FSA obligations, CIL may import coal and supply the same to the willing Thermal Power Plants (TPPs) on cost plus basis. TPPs may also import coal themselves. MoC to issue suitable instructions.
Higher cost of imported coal to be considered for pass through as per modalities suggested by CERC. MoC to issue suitable orders supplementing the New Coal Distribution Policy (NCDP). MoP to issue appropriate advisory to CERC/SERCs including modifications if any in the bidding guidelines to enable the appropriate Commissions to decide the pass through of higher cost of imported coal on case to case basis.
Mechanism will be explored to supply coal subject to its availability to the TPPs with 4660 MW capacity and other similar cases which are not having any coal linkage but are likely to be commissioned by 31.03.2015, having long term PPAs and a high Bank exposure and without affecting the above decisions.
Background
A proposal had earlier been moved for approval of CCEA for import of coal by CIL in order to meet the shortfall in the domestic coal requirement of the thermal power plants (TPPs) from time to time.
In the meeting held on 05.02.2013, the CCEA had laid down certain guidelines for import of coal on cost plus basis/pooling of prices and also directed formation of an Inter-Ministerial Committee (IMC) to consider the cases of power plants with aggregate capacity of about 16000 MW which would be commissioned by 31.03.2015 but are not having any linkage for supply of coal. On the basis of the recommendations of IMC, the matter was further considered by CCEA in the meeting held on 22.04.2013. The CCEA inter-alia directed to consider the feasibility of higher cost of imported coal being allowed as a pass through in case of PPAs signed on competitive bid basis.
The revised proposals submitted by Ministry of Coal (MoC) in pursuance of the above directions and in consultation with Ministry of Power and other Ministries were considered by the CCEA at its meeting today.
President commissions first unit of ONGC Tripura plant
Agartala: When Prime Minister Manmohan Singh laid the foundation stone for the 726.6-MW gas-based ONGC Tripura Power Company at Palatana in Tripura in 2005 – barely kilometres away from the Bangladesh border – not many, even in ONGC boardroom, were convinced if the project would take off.
Never before had power equipment weighing up to 280 tonne been brought to this land-locked State, which suffers from poor connectivity. All the power projects commissioned here so far were only of 10-30 MW capacity each.
About eight years later, President Pranab Mukherjee dedicated to the nation the first 363.3 MW unit on Friday. He was all praise for the role of Bangladesh in making this happen.
“India has many power generation utilities. Many more are coming up. But this one is special. Because if Bangladesh had not extended exemplary co-operation in allowing transit of the heavy equipment through their territories, OTPC would have never been a reality,” Mukherjee said in the presence of Bangladeshi diplomats in India.
He stressed on extending the scope of such initiatives for mutual benefit.
“We are trying to set up a common grid (through West Bengal border) to supply power (to Dhaka). NTPC is also setting up a thermal power station in Bangladesh,” the President said.
Fillip to North-East
Gas was discovered in Tripura as early as in 1974. The state-owned ONGC had established production potential to the tune of 5 million standard cubic metres or more.
According to the State Chief Minister, Manik Sarkar, two more E&P companies, engaged in exploration in Tripura, recently reported encouraging results. But in the absence of consumption base, exploration and production activities never gained pace in the State until the late Subir Raha, then ONGC chairman, responded positively to a proposal from the State Government to set up a power generation utility.
For ONGC, this opened the prospect to monetise the gas and step up exploration in the State.
For Tripura and the entire North Eastern region, this was the single largest investment. “From power-starved we are now power surplus. The changed status evinced interest among business,” said Manik Sarkar.
The ONGC company recently agreed to set up a 1.3 million tonne a year fertiliser plant jointly with Chambal Fertiliser and the Tripura Government to monetise its fresh gas discovery at Khubal.
This means that Tripura will witness Rs 5,000 crore of investment in the next three years. This is over and above an approximately Rs 10,000 crore investment in the last couple of years involving the power project.
Never before had power equipment weighing up to 280 tonne been brought to this land-locked State, which suffers from poor connectivity. All the power projects commissioned here so far were only of 10-30 MW capacity each.
About eight years later, President Pranab Mukherjee dedicated to the nation the first 363.3 MW unit on Friday. He was all praise for the role of Bangladesh in making this happen.
“India has many power generation utilities. Many more are coming up. But this one is special. Because if Bangladesh had not extended exemplary co-operation in allowing transit of the heavy equipment through their territories, OTPC would have never been a reality,” Mukherjee said in the presence of Bangladeshi diplomats in India.
He stressed on extending the scope of such initiatives for mutual benefit.
“We are trying to set up a common grid (through West Bengal border) to supply power (to Dhaka). NTPC is also setting up a thermal power station in Bangladesh,” the President said.
Fillip to North-East
Gas was discovered in Tripura as early as in 1974. The state-owned ONGC had established production potential to the tune of 5 million standard cubic metres or more.
According to the State Chief Minister, Manik Sarkar, two more E&P companies, engaged in exploration in Tripura, recently reported encouraging results. But in the absence of consumption base, exploration and production activities never gained pace in the State until the late Subir Raha, then ONGC chairman, responded positively to a proposal from the State Government to set up a power generation utility.
For ONGC, this opened the prospect to monetise the gas and step up exploration in the State.
For Tripura and the entire North Eastern region, this was the single largest investment. “From power-starved we are now power surplus. The changed status evinced interest among business,” said Manik Sarkar.
The ONGC company recently agreed to set up a 1.3 million tonne a year fertiliser plant jointly with Chambal Fertiliser and the Tripura Government to monetise its fresh gas discovery at Khubal.
This means that Tripura will witness Rs 5,000 crore of investment in the next three years. This is over and above an approximately Rs 10,000 crore investment in the last couple of years involving the power project.
President commissions first unit of ONGC Tripura plant
Agartala: When Prime Minister Manmohan Singh laid the foundation stone for the 726.6-MW gas-based ONGC Tripura Power Company at Palatana in Tripura in 2005 – barely kilometres away from the Bangladesh border – not many, even in ONGC boardroom, were convinced if the project would take off.
Never before had power equipment weighing up to 280 tonne been brought to this land-locked State, which suffers from poor connectivity. All the power projects commissioned here so far were only of 10-30 MW capacity each.
About eight years later, President Pranab Mukherjee dedicated to the nation the first 363.3 MW unit on Friday. He was all praise for the role of Bangladesh in making this happen.
“India has many power generation utilities. Many more are coming up. But this one is special. Because if Bangladesh had not extended exemplary co-operation in allowing transit of the heavy equipment through their territories, OTPC would have never been a reality,” Mukherjee said in the presence of Bangladeshi diplomats in India.
He stressed on extending the scope of such initiatives for mutual benefit.
“We are trying to set up a common grid (through West Bengal border) to supply power (to Dhaka). NTPC is also setting up a thermal power station in Bangladesh,” the President said.
Fillip to North-East
Gas was discovered in Tripura as early as in 1974. The state-owned ONGC had established production potential to the tune of 5 million standard cubic metres or more.
According to the State Chief Minister, Manik Sarkar, two more E&P companies, engaged in exploration in Tripura, recently reported encouraging results. But in the absence of consumption base, exploration and production activities never gained pace in the State until the late Subir Raha, then ONGC chairman, responded positively to a proposal from the State Government to set up a power generation utility.
For ONGC, this opened the prospect to monetise the gas and step up exploration in the State.
For Tripura and the entire North Eastern region, this was the single largest investment. “From power-starved we are now power surplus. The changed status evinced interest among business,” said Manik Sarkar.
The ONGC company recently agreed to set up a 1.3 million tonne a year fertiliser plant jointly with Chambal Fertiliser and the Tripura Government to monetise its fresh gas discovery at Khubal.
This means that Tripura will witness Rs 5,000 crore of investment in the next three years. This is over and above an approximately Rs 10,000 crore investment in the last couple of years involving the power project.
Never before had power equipment weighing up to 280 tonne been brought to this land-locked State, which suffers from poor connectivity. All the power projects commissioned here so far were only of 10-30 MW capacity each.
About eight years later, President Pranab Mukherjee dedicated to the nation the first 363.3 MW unit on Friday. He was all praise for the role of Bangladesh in making this happen.
“India has many power generation utilities. Many more are coming up. But this one is special. Because if Bangladesh had not extended exemplary co-operation in allowing transit of the heavy equipment through their territories, OTPC would have never been a reality,” Mukherjee said in the presence of Bangladeshi diplomats in India.
He stressed on extending the scope of such initiatives for mutual benefit.
“We are trying to set up a common grid (through West Bengal border) to supply power (to Dhaka). NTPC is also setting up a thermal power station in Bangladesh,” the President said.
Fillip to North-East
Gas was discovered in Tripura as early as in 1974. The state-owned ONGC had established production potential to the tune of 5 million standard cubic metres or more.
According to the State Chief Minister, Manik Sarkar, two more E&P companies, engaged in exploration in Tripura, recently reported encouraging results. But in the absence of consumption base, exploration and production activities never gained pace in the State until the late Subir Raha, then ONGC chairman, responded positively to a proposal from the State Government to set up a power generation utility.
For ONGC, this opened the prospect to monetise the gas and step up exploration in the State.
For Tripura and the entire North Eastern region, this was the single largest investment. “From power-starved we are now power surplus. The changed status evinced interest among business,” said Manik Sarkar.
The ONGC company recently agreed to set up a 1.3 million tonne a year fertiliser plant jointly with Chambal Fertiliser and the Tripura Government to monetise its fresh gas discovery at Khubal.
This means that Tripura will witness Rs 5,000 crore of investment in the next three years. This is over and above an approximately Rs 10,000 crore investment in the last couple of years involving the power project.
Tuesday, June 11, 2013
Oaktree Capital acquires majority stake in Cogent Glass
Hyderabad: Oaktree Capital Management, a Los Angeles-based investment firm, has acquired majority shares of Cogent Glass Ltd, a packaging company based in Hyderabad.
The US firm has acquired approximately 60 per cent stake of Cogent at an estimated enterprise value of Rs 200 crore.
Cogent, founded by a group of Indian promoters in 2010, commissioned the plant in February. The plant located in Addakal near Hyderabad produces moulded glass and tubular vials and ampoules for the pharmaceutical industry.
The plant is integrated with the automated converting equipment to convert the tube into vials and ampoules.
Oaktree Capital Management is a leading investment firm managing over $80 billion in assets, with a global portfolio of companies with several investments in the packaging sector.
Jean Rollier of Oaktree, who has been appointed non-executive chairman of the board of Cogent Glass, in a statement said: “We are pleased to invest in Cogent, because it provides us an entry into the fast-growing Indian market for pharmaceutical packaging.”
“The investment in Cogent together with our previous investment in SGD, a manufacturer of glass for the pharmaceutical and cosmetics industries, reaffirms our belief that this sector will provide opportunities for growth, globally,” he further said. SGD, a France-based manufacturer of glass packaging with operations in Europe, North and South America and China has simultaneously signed a cooperation agreement with Cogent that provides for technology sharing as well as marketing and management support.
Ashok Sudan, CEO of SDG, and board member of Cogent, based in Paris, told Business Line over phone that both the companies, SDG and Cogent, are now part of the same principal. Cogent will continue to support local companies with its products and explore opportunities to export.
The US firm has acquired approximately 60 per cent stake of Cogent at an estimated enterprise value of Rs 200 crore.
Cogent, founded by a group of Indian promoters in 2010, commissioned the plant in February. The plant located in Addakal near Hyderabad produces moulded glass and tubular vials and ampoules for the pharmaceutical industry.
The plant is integrated with the automated converting equipment to convert the tube into vials and ampoules.
Oaktree Capital Management is a leading investment firm managing over $80 billion in assets, with a global portfolio of companies with several investments in the packaging sector.
Jean Rollier of Oaktree, who has been appointed non-executive chairman of the board of Cogent Glass, in a statement said: “We are pleased to invest in Cogent, because it provides us an entry into the fast-growing Indian market for pharmaceutical packaging.”
“The investment in Cogent together with our previous investment in SGD, a manufacturer of glass for the pharmaceutical and cosmetics industries, reaffirms our belief that this sector will provide opportunities for growth, globally,” he further said. SGD, a France-based manufacturer of glass packaging with operations in Europe, North and South America and China has simultaneously signed a cooperation agreement with Cogent that provides for technology sharing as well as marketing and management support.
Ashok Sudan, CEO of SDG, and board member of Cogent, based in Paris, told Business Line over phone that both the companies, SDG and Cogent, are now part of the same principal. Cogent will continue to support local companies with its products and explore opportunities to export.
Godrej Interio targets Rs 5,000 crore revenue; to invest more than Rs 300 crore
Kolkata: Godrej Interio, the furniture retailing arm of Godrej Group, is eyeing Rs 5,000 crore turnover by 2016-17, with plans to invest more than Rs 300 crore to expand manufacturing capacity and retail stores.
Addressing a press conference here on Monday, Godrej Interio chief operating officer Anil S. Mathur said the company plans to set up more than 75 stores this year itself with focus on tier II and III cities. Godrej Interio in 2012-13 clocked Rs 1,500 crore revenue.
"We are aiming to become a solution provider rather than a product provider," said Mathur. Godrej Interio at present has 49 exclusive stores and also operates through 800 dealers.
The size of the branded furniture market in India is about Rs 10,000 crore out of which Godrej Interio has around 15% share. Mathur said the company also plans to set up 200 speciality stores which will design and built products as per the consumer's convenience.
"We would also partner with global brands to bring them to India. This could also involve local manufacturing, exports and co-branding of the products. We are in talks with Italian firms apart from our existing partnership with an US and Japanese brand," said Mr Mathur.
Addressing a press conference here on Monday, Godrej Interio chief operating officer Anil S. Mathur said the company plans to set up more than 75 stores this year itself with focus on tier II and III cities. Godrej Interio in 2012-13 clocked Rs 1,500 crore revenue.
"We are aiming to become a solution provider rather than a product provider," said Mathur. Godrej Interio at present has 49 exclusive stores and also operates through 800 dealers.
The size of the branded furniture market in India is about Rs 10,000 crore out of which Godrej Interio has around 15% share. Mathur said the company also plans to set up 200 speciality stores which will design and built products as per the consumer's convenience.
"We would also partner with global brands to bring them to India. This could also involve local manufacturing, exports and co-branding of the products. We are in talks with Italian firms apart from our existing partnership with an US and Japanese brand," said Mr Mathur.
Biz intelligence software revenue to touch $113 m this year
Mumbai: Indian business intelligence (BI) software revenue is forecast to rise 16 per cent to reach $113 million in 2013 from $98.1 million in 2002, according to a study by Gartner.
"Pressures from consumers, environmental policies, government and industry regulations, international standards of quality and internal operational efficiency are forcing enterprises to improve their operations and processes to become both agile and efficient in a volatile marketplace," said Bhavish Sood, research director at Gartner.
“These internal and external pressures are driving increased adoption of analytics solutions across the country,” he added.
The forecast includes revenue for BI platforms, analytic applications and corporate performance management software.
"Pressures from consumers, environmental policies, government and industry regulations, international standards of quality and internal operational efficiency are forcing enterprises to improve their operations and processes to become both agile and efficient in a volatile marketplace," said Bhavish Sood, research director at Gartner.
“These internal and external pressures are driving increased adoption of analytics solutions across the country,” he added.
The forecast includes revenue for BI platforms, analytic applications and corporate performance management software.
Spices exports cross Rs 10,000-cr mark
Kochi: Despite the continuance of global recession and economic slump in the overseas markets, India’s spices exports have crossed the Rs 10,000-crore mark.
A total of 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) has been exported in FY13 against 5,75,270 tonnes valued Rs 97,83.42 crore ($2,037.76 million) in FY12.
It is for the first time that the growth in volume of exports registered an all time high of 22 per cent and 14 per cent in value. The total exports have exceeded the target in terms of both quantity and value.
Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value.
As the exports of cumin, mint and chillies show sharp improvements during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A. Jayathilak, Chairman of Spices Board said.
Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds such as mustard, aniseed, ajwain seed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins, etc are the star performers recording rise in exports both in terms of volume and value.
Traditional spices such as pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year.
The export of seed spices witnessed a phenomenal growth both in terms of quantity and value. A total of 1,86,075 tonnes of seed spices valued at Rs 1,672.99 crore was exported in FY 13.
Break up
In the case of cumin, a total quantity of 79,900 tonnes valued Rs 1,093.17 crore was exported against 45,500 tonnes valued at Rs 644.42 crore.
Fennel showed an increase of 80 per cent in terms of quantity and 58 per cent in terms of value whereas fenugreek marked a rise of 43 per cent in quantity and 49 per cent in value terms. In terms of coriander, 37,100 tonnes valued at Rs 210.77 crore have been exported.
With high demand for its value-added products, mint continued to mark an increase of 49 per cent in value and 35 per cent in volume. A total of 19,980 tonnes of mint products were exported at a value of Rs 3,321.79 crore.
Garlic showed a whopping increase both in terms of quantity and value when 24,000 tonnes (2,200 tonne in FY 12) were exported at a value of Rs 74.49 crore (Rs 14.15 crore).
Chilli continued to remain upbeat when a total quantity of 2,81,000 tonnes of chilli valued at Rs 2,261.44 crore have been exported against 2,41,000 tonnes valued at Rs 2,144.08 crore.
While the export of small cardamom declined both in terms of volume and value, large cardamom showed a rising trend in the export market with an increase of 18 per cent in quantity and 8 per cent in value.
A total of 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) has been exported in FY13 against 5,75,270 tonnes valued Rs 97,83.42 crore ($2,037.76 million) in FY12.
It is for the first time that the growth in volume of exports registered an all time high of 22 per cent and 14 per cent in value. The total exports have exceeded the target in terms of both quantity and value.
Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value.
As the exports of cumin, mint and chillies show sharp improvements during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A. Jayathilak, Chairman of Spices Board said.
Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds such as mustard, aniseed, ajwain seed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins, etc are the star performers recording rise in exports both in terms of volume and value.
Traditional spices such as pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year.
The export of seed spices witnessed a phenomenal growth both in terms of quantity and value. A total of 1,86,075 tonnes of seed spices valued at Rs 1,672.99 crore was exported in FY 13.
Break up
In the case of cumin, a total quantity of 79,900 tonnes valued Rs 1,093.17 crore was exported against 45,500 tonnes valued at Rs 644.42 crore.
Fennel showed an increase of 80 per cent in terms of quantity and 58 per cent in terms of value whereas fenugreek marked a rise of 43 per cent in quantity and 49 per cent in value terms. In terms of coriander, 37,100 tonnes valued at Rs 210.77 crore have been exported.
With high demand for its value-added products, mint continued to mark an increase of 49 per cent in value and 35 per cent in volume. A total of 19,980 tonnes of mint products were exported at a value of Rs 3,321.79 crore.
Garlic showed a whopping increase both in terms of quantity and value when 24,000 tonnes (2,200 tonne in FY 12) were exported at a value of Rs 74.49 crore (Rs 14.15 crore).
Chilli continued to remain upbeat when a total quantity of 2,81,000 tonnes of chilli valued at Rs 2,261.44 crore have been exported against 2,41,000 tonnes valued at Rs 2,144.08 crore.
While the export of small cardamom declined both in terms of volume and value, large cardamom showed a rising trend in the export market with an increase of 18 per cent in quantity and 8 per cent in value.
New US biz centre to boost ties with Indian SMEs
Chandigarh: Some 450 SMEs in Mohali, Punjab, adjoining Chandigarh, are upbeat over the setting up of the American Business Corner (ABC) in the Mohali Industrial Area by the US government's department of commerce. This is northern India's first such facility, and is expected to help create business links between US and Indian SMEs.
ABC's activities will include dissemination of catalogues of US and Indian products to potential buyers, and holding of workshops and seminars on topics ranging from trade and finance to IPR (Intellectual Property Rights). It will also act as a clearing house that will connect the 450 members of the Mohali Industries Association (MIA) with US companies.
Anurag Aggarwal, president of MIA, told Business Standard, "In order to set up ABC, Mohali Industries Association signed a MoU with the US commerce department. This is for the first time that American SMEs are reaching out to Indian SMEs and this can prove to be an historic step towards enhancing trade relations between the two countries."
He added, "ABC is a novel concept as, to date, SMEs of the two countries did not have an opportunity to connect with each other. The setting up of ABC will be beneficial for all members who are looking for an opportunity to do business with the US. It will not only boost Indian exports to the US but will also help Indian SMEs to reach out to the best technology."
Mohali, a planned satellite town of Chandigarh, has a large concentration of SMEs which manufacture a wide range of products including railway components, auto parts, tractor parts, sanitary fittings, furniture, PVC pipes, chemicals, corrugated boxes, rubber and silicon material, precision parts, industrial gases, engineering items and electronic goods. The SMEs also manufacture TV sets, transformers, electronic sockets, mini computers, electronic telecom equipment, dish antennas and computer peripherals.
In a press statement, Nancy J Powell, US Ambassador to India, said the ABC in Mohali will act as a clearing house to connect its 450 member firms with US companies interested in doing business with them. Karan Avtar Singh, Punjab's principal secretary, industries and commerce, assured American and Indian SMEs that the Punjab government would help them to connect, so that trade between the two countries increase
ABC's activities will include dissemination of catalogues of US and Indian products to potential buyers, and holding of workshops and seminars on topics ranging from trade and finance to IPR (Intellectual Property Rights). It will also act as a clearing house that will connect the 450 members of the Mohali Industries Association (MIA) with US companies.
Anurag Aggarwal, president of MIA, told Business Standard, "In order to set up ABC, Mohali Industries Association signed a MoU with the US commerce department. This is for the first time that American SMEs are reaching out to Indian SMEs and this can prove to be an historic step towards enhancing trade relations between the two countries."
He added, "ABC is a novel concept as, to date, SMEs of the two countries did not have an opportunity to connect with each other. The setting up of ABC will be beneficial for all members who are looking for an opportunity to do business with the US. It will not only boost Indian exports to the US but will also help Indian SMEs to reach out to the best technology."
Mohali, a planned satellite town of Chandigarh, has a large concentration of SMEs which manufacture a wide range of products including railway components, auto parts, tractor parts, sanitary fittings, furniture, PVC pipes, chemicals, corrugated boxes, rubber and silicon material, precision parts, industrial gases, engineering items and electronic goods. The SMEs also manufacture TV sets, transformers, electronic sockets, mini computers, electronic telecom equipment, dish antennas and computer peripherals.
In a press statement, Nancy J Powell, US Ambassador to India, said the ABC in Mohali will act as a clearing house to connect its 450 member firms with US companies interested in doing business with them. Karan Avtar Singh, Punjab's principal secretary, industries and commerce, assured American and Indian SMEs that the Punjab government would help them to connect, so that trade between the two countries increase
Aurobindo Pharma to launch 20 drugs in US this year
Hyderabad: Aurobindo Pharma Ltd has lined up about 20 product launches in the US market in the current financial year which may improve its margins.
This was disclosed by Robert Cunard, Chief Executive Officer, Aurobindo Pharma, US, in the recent earnings call.
“A big question is what the Food and Drug Administration (FDA) does as far as the review time is concerned. But for FY 14, we expect 16 to 20 oral solid launches in the US market,” he said.
Of these, three products were expected from the Hyderabad-based company’s Aurolife facilities in the controlled substance area and one in the over the counter segment, he added.
“We do expect that some the molecules/key launches will be of little higher margins and continue to drive our growth,” he said.
The revenue to be generated on the new product side should be similar to what was witnessed last year which was about 14 per cent of the company’s total revenue in the US.
LOSSES IN EUROPE
On the improvement in the performance of European subsidiaries which were incurring losses in the last two years, N. Govindarajan, Managing Director, said there could be some improvement.
The subsidiaries in the UK and the Netherlands became profitable last year and Spain and Germany would become positive during the current financial year.
The performance in Italy and Portugal might take some more time.
“Over all, all European subsidiaries put together, we will be making a profit in the next year,” he said.
Aurobindo Pharma posted consolidated net profit of Rs 108.6 crore for the fourth quarter ended March 31, 2013, almost same as in the year-ago period.
Its scrip dropped 0.83 per cent on the BSE on Friday to close at Rs 184.15.
This was disclosed by Robert Cunard, Chief Executive Officer, Aurobindo Pharma, US, in the recent earnings call.
“A big question is what the Food and Drug Administration (FDA) does as far as the review time is concerned. But for FY 14, we expect 16 to 20 oral solid launches in the US market,” he said.
Of these, three products were expected from the Hyderabad-based company’s Aurolife facilities in the controlled substance area and one in the over the counter segment, he added.
“We do expect that some the molecules/key launches will be of little higher margins and continue to drive our growth,” he said.
The revenue to be generated on the new product side should be similar to what was witnessed last year which was about 14 per cent of the company’s total revenue in the US.
LOSSES IN EUROPE
On the improvement in the performance of European subsidiaries which were incurring losses in the last two years, N. Govindarajan, Managing Director, said there could be some improvement.
The subsidiaries in the UK and the Netherlands became profitable last year and Spain and Germany would become positive during the current financial year.
The performance in Italy and Portugal might take some more time.
“Over all, all European subsidiaries put together, we will be making a profit in the next year,” he said.
Aurobindo Pharma posted consolidated net profit of Rs 108.6 crore for the fourth quarter ended March 31, 2013, almost same as in the year-ago period.
Its scrip dropped 0.83 per cent on the BSE on Friday to close at Rs 184.15.
RCom to lease out telecom towers to Reliance Jio in Rs 12,000-cr pact
Mumbai: The Ambani brothers are getting closer, firming up on Friday a Rs 12,000-crore telecom tower deal. Anil Ambani promoted Reliance Communications will lease some 45,000 mobile masts to Reliance Jio Infocomm, run by his once estranged brother Mukesh.
Prelude to 4G
The latest deal with RCom is one of the several arrangements being put in place by Mukesh Ambani’s Reliance Industries to launch fourth generation, or 4G, telecom services next year
via Reliance Jio Infocomm.
Reliance Jio has pan-India licences to launch 4G services which, once deployed, will enable users to download a 10-megabyte piece of software in two seconds, and a two-gigabyte HD movie in minutes.
Reliance Jio will use 45,000 of RCom’s 50,000 ground and rooftop-based towers so that the rollout of 4G services can be accelerated, the two companies said in a press statement.
The deal will increase RCom’s average tenancy ratio, or tenants per tower to 2.7 per cent from 1.7 per cent, market sources said. The deal is said to be part of an ongoing ‘comprehensive framework of business co-operation’ between Reliance Industries and RCom.
The first commercial accord between the two firms was signed in April when RIL agreed to use RCom’s fibre optic network for a one-time payment of Rs 1,200 crore.
Interestingly, this time around, the companies have chosen not to disclose the tenure of the engagement. All they have said is that the deal is valid ‘for the lifetime of the agreement’. Company executives, who declined to be identified, say the two companies have contracted for 15 years.
Validity
Reliance Industries will pay an average of Rs 800 crore a year, but the payout in the first few years will be around Rs 200 crore, they said.
The broadband wireless access licence won by Infotel Broadband, and later acquired by RIL, is valid for 20 years starting 2010.
“RIL is known to be a tough negotiator. Since the company had not disclosed the tenure of the engagement, in all probability RIL would have got a good deal on the valuation side. However, the deal is good news for RCom as it will help it reduce debt and stabilise cash-flows,” said Alok Shende, Principal Analyst, Ascentius Consulting.
As on March 31, 2013, RCom had a net debt of Rs 38,864 crore. A deal with Reliance Jio, which means assured business, increases the chances of RCom finding a strategic investor.
Brokerages too are taking a cautious view on the RIL and RCom stocks as no details are available on the deal. “We continue to remain neutral on the stock as of now and wait for clarity on the nature of payments, rentals, etc,” Angel Broking’s Telecom Analyst Ankita Somani said in a research note.
The Reliance Industries scrip closed down 0.97 per cent at Rs 784.6 on the BSE, while the RCom ended at Rs 116.1, 1.1 per cent lower than Thursday’s closing price.
Prelude to 4G
The latest deal with RCom is one of the several arrangements being put in place by Mukesh Ambani’s Reliance Industries to launch fourth generation, or 4G, telecom services next year
via Reliance Jio Infocomm.
Reliance Jio has pan-India licences to launch 4G services which, once deployed, will enable users to download a 10-megabyte piece of software in two seconds, and a two-gigabyte HD movie in minutes.
Reliance Jio will use 45,000 of RCom’s 50,000 ground and rooftop-based towers so that the rollout of 4G services can be accelerated, the two companies said in a press statement.
The deal will increase RCom’s average tenancy ratio, or tenants per tower to 2.7 per cent from 1.7 per cent, market sources said. The deal is said to be part of an ongoing ‘comprehensive framework of business co-operation’ between Reliance Industries and RCom.
The first commercial accord between the two firms was signed in April when RIL agreed to use RCom’s fibre optic network for a one-time payment of Rs 1,200 crore.
Interestingly, this time around, the companies have chosen not to disclose the tenure of the engagement. All they have said is that the deal is valid ‘for the lifetime of the agreement’. Company executives, who declined to be identified, say the two companies have contracted for 15 years.
Validity
Reliance Industries will pay an average of Rs 800 crore a year, but the payout in the first few years will be around Rs 200 crore, they said.
The broadband wireless access licence won by Infotel Broadband, and later acquired by RIL, is valid for 20 years starting 2010.
“RIL is known to be a tough negotiator. Since the company had not disclosed the tenure of the engagement, in all probability RIL would have got a good deal on the valuation side. However, the deal is good news for RCom as it will help it reduce debt and stabilise cash-flows,” said Alok Shende, Principal Analyst, Ascentius Consulting.
As on March 31, 2013, RCom had a net debt of Rs 38,864 crore. A deal with Reliance Jio, which means assured business, increases the chances of RCom finding a strategic investor.
Brokerages too are taking a cautious view on the RIL and RCom stocks as no details are available on the deal. “We continue to remain neutral on the stock as of now and wait for clarity on the nature of payments, rentals, etc,” Angel Broking’s Telecom Analyst Ankita Somani said in a research note.
The Reliance Industries scrip closed down 0.97 per cent at Rs 784.6 on the BSE, while the RCom ended at Rs 116.1, 1.1 per cent lower than Thursday’s closing price.
Govt appoints council of experts for financial sector
New Delhi: The Finance Ministry has constituted a standing council of experts to assess the international competitiveness of the Indian financial sector.
The council will be headed by the Secretary, Department of Economic Affairs.
The Council will examine various monetary and non-monetary transaction costs or burden of doing business in the Indian market, and make recommendations for enhancing its competitiveness.
It will have Chief Economic Adviser as alternate chairman and member. The council will also have Prithvi Haldea (Chairman, Prime Database), Madhav Dhar (Board Member, GTI Group), Nachiket Mor (Chairman, CARE India), Shumeet Banerji (ex-CEO, Booz and Company), Jahangir Aziz (JP Morgan), Ravi Narain (former MD & present Vice-Chairman, NSE), Vikram Gandhi (CEO, VSG Capital Advisors), Susan Thomas (Assistant Professor, IGIDR), Shubhashis Gangopadhyay (Director, India Development Foundation) and V. Ravi Anshuman (IIM, Bangalore) as the members. According to the terms of reference of the Council, it will look at issues relating to transacting business through Indian capital markets, including brokerage fee, applicable tax rates, documentation requirements etc, vis-à-vis other competing destinations, and make recommendations aimed at achieving competitiveness.
The council has been asked to examine related policy or operating frameworks and the performance of various segments of the Indian capital market. It will make recommendations aimed at improving their competitiveness and efficiency, as also the completeness of these markets in terms of fully meeting client needs according to global standards through provision of requisite services and financial instruments.
Reform measures
The council will also examine possibilities for and suggest reform measures aimed at enhancing transparency, promoting development and strengthening of governance in the Indian capital markets, while ensuring that risks are contained and investor interests are protected.
The council has been constituted after an announcement was made in the Budget. In his budget speech, the Finance Minister P. Chidambaram had said, "I propose to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector, periodically examine the transaction costs of doing business in the Indian market, and provide inputs to Government for necessary action."
The council will be headed by the Secretary, Department of Economic Affairs.
The Council will examine various monetary and non-monetary transaction costs or burden of doing business in the Indian market, and make recommendations for enhancing its competitiveness.
It will have Chief Economic Adviser as alternate chairman and member. The council will also have Prithvi Haldea (Chairman, Prime Database), Madhav Dhar (Board Member, GTI Group), Nachiket Mor (Chairman, CARE India), Shumeet Banerji (ex-CEO, Booz and Company), Jahangir Aziz (JP Morgan), Ravi Narain (former MD & present Vice-Chairman, NSE), Vikram Gandhi (CEO, VSG Capital Advisors), Susan Thomas (Assistant Professor, IGIDR), Shubhashis Gangopadhyay (Director, India Development Foundation) and V. Ravi Anshuman (IIM, Bangalore) as the members. According to the terms of reference of the Council, it will look at issues relating to transacting business through Indian capital markets, including brokerage fee, applicable tax rates, documentation requirements etc, vis-à-vis other competing destinations, and make recommendations aimed at achieving competitiveness.
The council has been asked to examine related policy or operating frameworks and the performance of various segments of the Indian capital market. It will make recommendations aimed at improving their competitiveness and efficiency, as also the completeness of these markets in terms of fully meeting client needs according to global standards through provision of requisite services and financial instruments.
Reform measures
The council will also examine possibilities for and suggest reform measures aimed at enhancing transparency, promoting development and strengthening of governance in the Indian capital markets, while ensuring that risks are contained and investor interests are protected.
The council has been constituted after an announcement was made in the Budget. In his budget speech, the Finance Minister P. Chidambaram had said, "I propose to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector, periodically examine the transaction costs of doing business in the Indian market, and provide inputs to Government for necessary action."
Enterprise software market to reach $ 3.92 bn in 2013: Gartner
New Delhi: Despite challenging economic conditions, the enterprise software market in India is projected to reach $3.92 billion in 2013, a 13.9% growth over 2012 revenue of $3.45 billion, according to analyst firm Gartner. In 2013, India will be the fourth largest enterprise software market in Asia-Pacific region.
"Growing maturity of Indian users is an important driver for overall growth. Compounding the demand is the ongoing tendency for greater customer services, drive for IT cost savings, as well as the incorporation of emerging technologies such as mobility, social, cloud and business process management," said Asheesh Raina, principal research analyst at Gartner, in a release.
India also enjoys a rich presence of international software and hardware vendors, including HP, dell, Microsoft, IBM backed by an ecosystem of system integrators, service providers and business partners. The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (Gartner defines it as the convergence of new mobile, social, cloud and information computing environments) are the key drivers for high sustainable growth for India.
India is forecast to account for 11.6% of the region's total revenue of $33.73 billion in 2013, the equivalent to 1.32% of the total worldwide software market of $296 billion. By 2017, India's share of the software market in Asia-Pacific is expected to reach 13.11%, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion.
"End users in Asia-Pacific are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore," said Mr. Raina. "Increased budgets in India are expected because of the growing economy, increased globalization, foreign direct investment ( FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination."
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
"Growing maturity of Indian users is an important driver for overall growth. Compounding the demand is the ongoing tendency for greater customer services, drive for IT cost savings, as well as the incorporation of emerging technologies such as mobility, social, cloud and business process management," said Asheesh Raina, principal research analyst at Gartner, in a release.
India also enjoys a rich presence of international software and hardware vendors, including HP, dell, Microsoft, IBM backed by an ecosystem of system integrators, service providers and business partners. The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (Gartner defines it as the convergence of new mobile, social, cloud and information computing environments) are the key drivers for high sustainable growth for India.
India is forecast to account for 11.6% of the region's total revenue of $33.73 billion in 2013, the equivalent to 1.32% of the total worldwide software market of $296 billion. By 2017, India's share of the software market in Asia-Pacific is expected to reach 13.11%, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion.
"End users in Asia-Pacific are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore," said Mr. Raina. "Increased budgets in India are expected because of the growing economy, increased globalization, foreign direct investment ( FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination."
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
India offers US$ 150 million for SEZ in Sittwe
Indian Banks Make Inroads in Myanmar
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
Saturday, June 8, 2013
GAIL, SCI sign MoU for LNG transportation
New Delhi: Gail India and the Shipping of Corporation India (SCI) today signed a memorandum of understanding (MOU) to cooperate for transportation of LNG sourced by Gail from the United States.
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
RIL will invest Rs1.5 lakh crore in next 3 years
Mumbai: Reliance Industries (RIL) has lined up an investment of Rs 1.5 lakh crore over the next three years across its business from oil and gas to petrochemicals and from retail to telecommunications, making it the largest capital investment in India by any enterprise.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
India leads among BRIC nations: HSBC survey
New Delhi: India expanded at a better rate than the three BRIC peers China, Russia and Brazil in May 2013, according to a survey by HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
India, S. Africa may sign preferential trade pact this year
Hyderabad:India and South Africa may conclude a Preferential Trade Agreement by the end of this year, which would significantly boost bi-lateral trade, according to Moketsa Ramasodi, Chief Director, Department of Agriculture, Republic of South Africa.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
India committed to be a steadfast partner of Myanmar: Anand Sharma
New Delhi:The Union Minister of Commerce, Industry & Textiles Shri Anand Sharma today asserted that with democracy tightening its grip in Myanmar, which has provided a right enabling environment to inspire investors’ confidence, India remains committed "to be a steadfast partner of Myanmar as it charters its path to growth and progress." Speaking during a session entitled "The Long-Term View" at the World Economic Forum on East Asia 2013 in Nay Pyi Taw, Myanmar today, Shri Sharma highlighted that India’s engagement with Myanmar is premised on a strong development partnership and that India would like to align its cooperation with the economic priorities of Myanmar.
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
Friday, June 7, 2013
Ruchi Soya partners Japan cos for edible oil
Mumbai:To introduce a super premium edible oil brand which Indian consumers have never witnessed, Ruchi Soya Industries, India’s leading food and agro-based FMCG player, has inked a joint venture with J-Oil Mills Inc and Toyota Tsusho Corporation (TTC), both from Japan.
Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC.
“This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network,” said Dinesh Shahra, Founder and Managing Director, Ruchi Soya.
In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the company’s existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore.
The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said.
The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014.
Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.”
"Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field,” said Yoshiki Miura, Managing Director, TTC.
Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC.
“This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network,” said Dinesh Shahra, Founder and Managing Director, Ruchi Soya.
In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the company’s existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore.
The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said.
The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014.
Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.”
"Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field,” said Yoshiki Miura, Managing Director, TTC.
Amazon clicks into Indian online marketplace
New Delhi: Amazon, the world’s largest online retail company, has entered the Indian e-commerce space, promising low price for users and a better platform for sellers. India is the tenth market where Amazon has launched a country-specific retail Web site.
But unlike Amazon sites in other countries, the Indian venture is limited to third-party sellers. Amazon will not sell its own inventory due to foreign direct investment (FDI) regulations prohibiting foreign retailers from selling their own products online.
To start with, consumers will be able to buy books, movies and TV shows. Amazon.in will introduce additional categories including mobile phones and cameras in the coming weeks. On Day 1, the book store featured over seven million print books across 200 plus categories while the video store featured a collection of over 12,000 titles in English and Hindi.
While Amazon has not previously had a branded presence in India, in February 2012, it made its foray into the Indian market with the launch of Junglee.com, which connects buyers with online and offline retailers but with no sales transactions.
Real challenges
The launch of Amazon.in comes at a time when other e-commerce sites in the country have not been doing well. There are challenges including customer suspicion towards the quality of products sold online and lack of trust in payment mechanism.
Amit Agarwal, Vice-President, International Expansion, Amazon.com, told Business Line that while these challenges are real, other markets have shown similar trends at the nascent stage. “When you make your investment decision with a timeframe of 10 years then these things do not matter,” he said. From the consumer point of view, Amazon offers a platform that is aimed at offering a low price on any product by allowing sellers to compete.
For the seller, Amazon is offering unlimited shelf space with no listing fees. “From packaging to taxation to delivery logistics we are offering all of it in a simple package to sellers,” said Agarwal.
Pan-INDIA REACH
“Selling on Amazon presents an exciting opportunity as it opens up a new sales channel with pan-India reach at virtually no investment,” said M. S. Jaya Prakash, Proprietor, EducationSupplies. “Prior to this, I did not sell online and was apprehensive about how to fulfil online orders in a timely manner, handle customer service and manage returns.”
But unlike Amazon sites in other countries, the Indian venture is limited to third-party sellers. Amazon will not sell its own inventory due to foreign direct investment (FDI) regulations prohibiting foreign retailers from selling their own products online.
To start with, consumers will be able to buy books, movies and TV shows. Amazon.in will introduce additional categories including mobile phones and cameras in the coming weeks. On Day 1, the book store featured over seven million print books across 200 plus categories while the video store featured a collection of over 12,000 titles in English and Hindi.
While Amazon has not previously had a branded presence in India, in February 2012, it made its foray into the Indian market with the launch of Junglee.com, which connects buyers with online and offline retailers but with no sales transactions.
Real challenges
The launch of Amazon.in comes at a time when other e-commerce sites in the country have not been doing well. There are challenges including customer suspicion towards the quality of products sold online and lack of trust in payment mechanism.
Amit Agarwal, Vice-President, International Expansion, Amazon.com, told Business Line that while these challenges are real, other markets have shown similar trends at the nascent stage. “When you make your investment decision with a timeframe of 10 years then these things do not matter,” he said. From the consumer point of view, Amazon offers a platform that is aimed at offering a low price on any product by allowing sellers to compete.
For the seller, Amazon is offering unlimited shelf space with no listing fees. “From packaging to taxation to delivery logistics we are offering all of it in a simple package to sellers,” said Agarwal.
Pan-INDIA REACH
“Selling on Amazon presents an exciting opportunity as it opens up a new sales channel with pan-India reach at virtually no investment,” said M. S. Jaya Prakash, Proprietor, EducationSupplies. “Prior to this, I did not sell online and was apprehensive about how to fulfil online orders in a timely manner, handle customer service and manage returns.”
TCS, Cognizant bag mega deal from UK Rail
Mumbai:UK's Network Rail has given out IT outsourcing deals worth £360 million to Tata Consultancy Services (TCS), Cognizant Technology Solutions and three other multinational companies as it prepares to work with a smaller set of technology vendors.
The five ‘framework agreements’ will enable Network Rail, which owns and operates Britain's railway infrastructure, in ‘simplifying its computing relationships’ with over 270 individual IT suppliers, according to a press statement from the London-headquartered company.
The five ‘framework agreements’ will enable Network Rail, which owns and operates Britain's railway infrastructure, in ‘simplifying its computing relationships’ with over 270 individual IT suppliers, according to a press statement from the London-headquartered company.
UK to double trade with India
Kochi: The United Kingdom (UK) is attempting to double its trade with India by 2015, said Eric Pickles, British cabinet minister for communities and local government.
Pickles, who is leading a 20-member business delegation, was talking in Kochi on Wednesday in a seminar on UK-built environment expertise. The delegation is also exploring partnerships with the state government in environment, infrastructure, construction and water sectors.
"Close relationships are already paying off. In the national level, we collaborate closely on everything from energy security to climate change and healthcare," Pickles said. The relationship is benefiting the UK too, he noted.
"Like you, we are in the midst of an infrastructure boom, rolling out superfast broadband and laying down a national high-speed rail network, to give us the backbone to compete on the global stage," he noted.
The positive aspect of India is "the sort of inward investment that saw Tata transforming iconic British brand Jaguar Land Rover into a runaway success," he said.
UK-India partnerships are also blossoming in Kerala, Pickles observed. "The special-purpose vessels built at Cochin Shipyard Ltd ( CSL) to ensure safe marine navigation along the Indian coast were designed and powered by Rolls Royce Marine. HR Wallingford has developed the liquefied natural gas terminal for Petronet LNG Ltd in Kochi," he highlighted.
"We are now looking at doubling our trade by 2015," he added.
Meanwhile, 40,000 Indian students are studying in the UK. And the British Council has trained nearly 1 million English language teachers, reaching over 17 million aspirational Indians who know that speaking English will help them to get on in life.
According to the British government's website, the bilateral trade between India and the UK touched 16.4 billion pounds in the fiscal year 2011 - 2012.
Pickles, who is leading a 20-member business delegation, was talking in Kochi on Wednesday in a seminar on UK-built environment expertise. The delegation is also exploring partnerships with the state government in environment, infrastructure, construction and water sectors.
"Close relationships are already paying off. In the national level, we collaborate closely on everything from energy security to climate change and healthcare," Pickles said. The relationship is benefiting the UK too, he noted.
"Like you, we are in the midst of an infrastructure boom, rolling out superfast broadband and laying down a national high-speed rail network, to give us the backbone to compete on the global stage," he noted.
The positive aspect of India is "the sort of inward investment that saw Tata transforming iconic British brand Jaguar Land Rover into a runaway success," he said.
UK-India partnerships are also blossoming in Kerala, Pickles observed. "The special-purpose vessels built at Cochin Shipyard Ltd ( CSL) to ensure safe marine navigation along the Indian coast were designed and powered by Rolls Royce Marine. HR Wallingford has developed the liquefied natural gas terminal for Petronet LNG Ltd in Kochi," he highlighted.
"We are now looking at doubling our trade by 2015," he added.
Meanwhile, 40,000 Indian students are studying in the UK. And the British Council has trained nearly 1 million English language teachers, reaching over 17 million aspirational Indians who know that speaking English will help them to get on in life.
According to the British government's website, the bilateral trade between India and the UK touched 16.4 billion pounds in the fiscal year 2011 - 2012.
MoU signed between Competition Commission of India and Australian Competition and Consumer Commission (ACCC)
New Delhi: Competition Commission of India (CCI) and Australian Competition and Consumer Commission (ACCC) signed a Memorandum of Understanding (MOU) on Cooperation at Canberra, Australia. The MOU was signed by Mr. Ashok Chawla, Chairperson, CCI and Mr. Rod Sims, Chairman, ACCC on 3rd June,2013. The signing took place in the presence of Mr. Sachin Pilot, Hon’ble State Minister of Corporate Affairs (Independent Charge).
The MOU provides for sharing information on significant developments in competition policy and enforcement developments in the respective jurisdictions. It is recognised that it may be in common interest of both the parties to work together in technical cooperation activities as well as cooperate in appropriate cases, consistent with the respective enforcement interests, legal constraints, and available resources. It is planned to evaluate the effectiveness of the cooperation under the Memorandum on a regular basis to ensure that the expectations and needs are being met. MOU is expected to further strengthen existing cooperation between CCI and ACCC
The MOU provides for sharing information on significant developments in competition policy and enforcement developments in the respective jurisdictions. It is recognised that it may be in common interest of both the parties to work together in technical cooperation activities as well as cooperate in appropriate cases, consistent with the respective enforcement interests, legal constraints, and available resources. It is planned to evaluate the effectiveness of the cooperation under the Memorandum on a regular basis to ensure that the expectations and needs are being met. MOU is expected to further strengthen existing cooperation between CCI and ACCC
OnMobile to buy US-based Livewire for $18 mn
Bengaluru:Mobile value-added services provider OnMobile Global Ltd has entered into a definitive agreement to acquire Boston-headquartered Livewire Mobile, a provider of managed mobile entertainment solutions for network operators and device manufacturers. It will pay $17.8 million (around Rs 100 crore on Tuesday) for the purchase of LiveWire’s business assets and some liabilities, subject to certain contingent payments, the Bangalore-based company said on Tuesday. As part of the agreement, OnMobile will also purchase stocks of Fonestarz Media Ltd, the managed services arm of Livewire based in the UK. With the completion of the acquisition, the new entity will be called OnMobile Live Inc, a fully owned subsidiary of OnMobile LLC, US. Established in 1983, Livewire Mobile provides a suite of solutions such as full track music, ringback tones, ringtones and infotainment services.
The company currently powers ringback tone and mobile music solutions for Sprint, MetroPCS and Public Mobile, among others.
With the acquisition of Livewire Mobile, OnMobile will now expand its music and ringback tone services to leading operators in North America.
“The acquisition augments our strong market presence in mobile cloud services that we currently provide to major mobile operators in North America. By successfully integrating OnMobile and Livewire’s products and by extending OnMobile’s proven managed services model, we believe we can create a truly compelling value proposition for the telecom operators and consumers worldwide,” said Mouli Raman, chief executive officer and co-founder of OnMobile Global.
The company currently powers ringback tone and mobile music solutions for Sprint, MetroPCS and Public Mobile, among others.
With the acquisition of Livewire Mobile, OnMobile will now expand its music and ringback tone services to leading operators in North America.
“The acquisition augments our strong market presence in mobile cloud services that we currently provide to major mobile operators in North America. By successfully integrating OnMobile and Livewire’s products and by extending OnMobile’s proven managed services model, we believe we can create a truly compelling value proposition for the telecom operators and consumers worldwide,” said Mouli Raman, chief executive officer and co-founder of OnMobile Global.
Lanco Infra bags Rs 3,294-cr EPC contract
Hyderabad: Lanco Infratech has been awarded a major EPC (engineering, procurement and construction) contract by Gujarat Industries Power Company.
The diversified infrastructure player won the deal amidst stiff competition , according to T. Adibabu, Chief Operating Officer, Finance, Lanco Infratech.
The order for setting up of 2x300 MW lignite-based thermal power project includes offshore and onshore supplies, civil and structuring works and engineering and procurement.
The contract worth Rs 3,294 crore is to be executed within 42 months. Work on the project site, including soil testing, will begin soon, Adibabu told Business Line.
With this deal, the company’s order book has gone up to Rs 30,000 crore.
On Tuesday, Lanco Infra shares closed at Rs 9.06, up 3.42 per cent on the BSE.
The diversified infrastructure player won the deal amidst stiff competition , according to T. Adibabu, Chief Operating Officer, Finance, Lanco Infratech.
The order for setting up of 2x300 MW lignite-based thermal power project includes offshore and onshore supplies, civil and structuring works and engineering and procurement.
The contract worth Rs 3,294 crore is to be executed within 42 months. Work on the project site, including soil testing, will begin soon, Adibabu told Business Line.
With this deal, the company’s order book has gone up to Rs 30,000 crore.
On Tuesday, Lanco Infra shares closed at Rs 9.06, up 3.42 per cent on the BSE.
CapVent AG buys 51% stake in Morf India
Chennai:Switzerland-based PE fund, Capvent AG has picked up a majority stake of 51% in Morf India, a Chennai based water engineering company which has operations throughout South India. The capital will be deployed to develop new and innovative products, brand campaigns and expansion plans.
"Given the rapidly growing size of our industry, it's time for us to reinvent ourselves and scale up faster," MV Praveen, managing director, Morf India said. The company has also embarked on a multi-tier business network, comprising distributors , channel partners and lead generators to reach out to its customers.
Last year, Morf entered in to a brand licensing agreement with Electrolux Home Products to manufacture and market their Kelvinator range of home water purifiers and air purifiers in India and Sri Lanka. Their first RO (reverse osmosis) water purifier model Kelvinator Ayoni has already been launched in Tamil Nadu, Karnataka and Andhra Pradesh.
"Given the rapidly growing size of our industry, it's time for us to reinvent ourselves and scale up faster," MV Praveen, managing director, Morf India said. The company has also embarked on a multi-tier business network, comprising distributors , channel partners and lead generators to reach out to its customers.
Last year, Morf entered in to a brand licensing agreement with Electrolux Home Products to manufacture and market their Kelvinator range of home water purifiers and air purifiers in India and Sri Lanka. Their first RO (reverse osmosis) water purifier model Kelvinator Ayoni has already been launched in Tamil Nadu, Karnataka and Andhra Pradesh.
CapVent AG buys 51% stake in Morf India
Chennai:Switzerland-based PE fund, Capvent AG has picked up a majority stake of 51% in Morf India, a Chennai based water engineering company which has operations throughout South India. The capital will be deployed to develop new and innovative products, brand campaigns and expansion plans.
"Given the rapidly growing size of our industry, it's time for us to reinvent ourselves and scale up faster," MV Praveen, managing director, Morf India said. The company has also embarked on a multi-tier business network, comprising distributors , channel partners and lead generators to reach out to its customers.
Last year, Morf entered in to a brand licensing agreement with Electrolux Home Products to manufacture and market their Kelvinator range of home water purifiers and air purifiers in India and Sri Lanka. Their first RO (reverse osmosis) water purifier model Kelvinator Ayoni has already been launched in Tamil Nadu, Karnataka and Andhra Pradesh.
"Given the rapidly growing size of our industry, it's time for us to reinvent ourselves and scale up faster," MV Praveen, managing director, Morf India said. The company has also embarked on a multi-tier business network, comprising distributors , channel partners and lead generators to reach out to its customers.
Last year, Morf entered in to a brand licensing agreement with Electrolux Home Products to manufacture and market their Kelvinator range of home water purifiers and air purifiers in India and Sri Lanka. Their first RO (reverse osmosis) water purifier model Kelvinator Ayoni has already been launched in Tamil Nadu, Karnataka and Andhra Pradesh.
Suzlon bags orders in Burgundy
Suzlon Group-subsidiary, REpower Systems, has concluded two contracts with ABO Wind for the supply of 13 wind turbines that will be installed for two wind farms in Burgundy. The wind farms will generate a total output of over 26 MW.
Olivier Perot, REpower S.A.S. Managing Director, said: “These wind farms Pune:strengthen our position in the Burgundy region which is very dynamic in wind energy.”
Clamecy wind farm with six MM 92 type wind turbines is located in la Nièvre department, while seven turbines are destined for the wind farms of Migé and Escamps, located in Yonne departement. The first machines will be delivered for fall 2013 and the commissioning is planned for winter 2013/14. REpower will also provide the full maintenance of the wind farms for 15 years.
“Both wind farms in Burgundy are consequently realising the idea of citizen participation," Patrick Bessière, Manager of ABO Wind SARL in Toulouse, said. Two turbines of the project Migé-Escamps will be owned by ABO Invest, held by 20 per cent of its shares by ABO Wind and the remaining 80 per cent by more than 2,000 citizens. The company operates seven wind farms in France, Germany and Ireland.
ABO Invest will further acquire 65 per cent of the wind farm Clamecy. The remaining 35 per cent will be held by a local corporation consisting of municipalities as well as citizens and the local energy utility Intercommunal d'Energies d'Equipement et d'Environnement dela Nièvre (SIEEEN).
The Suzlon stock hit a new 52-week low of Rs 10.40 on the BSE in morning trade today.
Keywords: Suzlon, REpower Systems, ABO Wind, Suzlon bags new wind farms order, Suzlon Burgundy order, Suzlon stock, Suzlon shares
Olivier Perot, REpower S.A.S. Managing Director, said: “These wind farms Pune:strengthen our position in the Burgundy region which is very dynamic in wind energy.”
Clamecy wind farm with six MM 92 type wind turbines is located in la Nièvre department, while seven turbines are destined for the wind farms of Migé and Escamps, located in Yonne departement. The first machines will be delivered for fall 2013 and the commissioning is planned for winter 2013/14. REpower will also provide the full maintenance of the wind farms for 15 years.
“Both wind farms in Burgundy are consequently realising the idea of citizen participation," Patrick Bessière, Manager of ABO Wind SARL in Toulouse, said. Two turbines of the project Migé-Escamps will be owned by ABO Invest, held by 20 per cent of its shares by ABO Wind and the remaining 80 per cent by more than 2,000 citizens. The company operates seven wind farms in France, Germany and Ireland.
ABO Invest will further acquire 65 per cent of the wind farm Clamecy. The remaining 35 per cent will be held by a local corporation consisting of municipalities as well as citizens and the local energy utility Intercommunal d'Energies d'Equipement et d'Environnement dela Nièvre (SIEEEN).
The Suzlon stock hit a new 52-week low of Rs 10.40 on the BSE in morning trade today.
Keywords: Suzlon, REpower Systems, ABO Wind, Suzlon bags new wind farms order, Suzlon Burgundy order, Suzlon stock, Suzlon shares
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