Hydearbad: In its efforts to provide hearing aid to the needy, Apollo Hospitals has achieved a milestone of implanting 700 cochlear devices.
A cochlear implant is a small, complex electronic device that can help to give a sense of sound to a person who is severely hard-of-hearing. Unlike a hearing aid, these implants bypass damaged portions of the ear and directly stimulate the auditory nerve.
The Executive Director of the Hospital, Sangita Reddy today announced the accomplishment of the Cochlear Implant clinic at the Apollo Health City.
She said the implant is expensive and appealed to donors and corporates to come forward and support several others who are in need of cochlear implants. Of the 700 patients treated till now 300 were supported by Arogyasree and 350 others got support from SAHI (Society to Aid the Hearing Impaired, Apollo Hospitals and donors.
Success in my Habit
Wednesday, July 31, 2013
GE Energy invests Rs 257 cr in Gati’s Sikkim hydel project
Hyderabad: GE Energy Financial Services India has invested Rs 257 crore in the Sikkim hydro-power project developed by Gati Ltd.
The investment was made through a share subscription agreement, according to Gati.
Gati Infrastructure Pvt Ltd, the energy initiative of Mahendra Agarwal, Founder and CEO of Gati Ltd, has developed the 110-megawatt Chuzachen hydro-electric project in east Sikkim to harness the water flow from the rivers Rangpo and Rongli. The project was commissioned in May.
The run-of-river hydel project has turbines and generators from Alstom India Ltd. The project built at a cost of Rs 1,188 crore is the first one of such size under private ownership in the North_East. IDFC is the lead financier with a loan at the project level. Capital Fortunes Pvt Ltd, Hyderabad, are the advisors and sole arrangers.
Mahendra Agarwal said, “Sikkim is a growing economy in the North-East with average rainfall higher than in several other Himalayan States. With glacial melt and the perennial rivers, Sikkim has a peak potential capacity of 8,000 megawatts of hydro-electric power.”
The investment was made through a share subscription agreement, according to Gati.
Gati Infrastructure Pvt Ltd, the energy initiative of Mahendra Agarwal, Founder and CEO of Gati Ltd, has developed the 110-megawatt Chuzachen hydro-electric project in east Sikkim to harness the water flow from the rivers Rangpo and Rongli. The project was commissioned in May.
The run-of-river hydel project has turbines and generators from Alstom India Ltd. The project built at a cost of Rs 1,188 crore is the first one of such size under private ownership in the North_East. IDFC is the lead financier with a loan at the project level. Capital Fortunes Pvt Ltd, Hyderabad, are the advisors and sole arrangers.
Mahendra Agarwal said, “Sikkim is a growing economy in the North-East with average rainfall higher than in several other Himalayan States. With glacial melt and the perennial rivers, Sikkim has a peak potential capacity of 8,000 megawatts of hydro-electric power.”
Government calls upon industry to invest in R&D in agrochemicals sector
New Delhi: The Government has called upon agrochemicals industry to invest in Research & Development and innovations in agrochemicals sector. Delivering the inaugural address at a two-day Third National Conference here today, the Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Shri Indrajit Pal said that in order to remain globally competitive, the industry needs to innovate in products, for which innovative state-of-the-art R&D laboratories and financial resources would be required. Shri Indrajit Pal said that the Indian chemical sector spends 1-2% of their total turnover on R&D as compared to around 5-10% by the chemical industry in the developed countries. One of the emerging areas for R & D is green agrochemicals and the Indian industry is the development of eco-friendly green agrochemicals, he added.
The Secretary informed that for ensuring quality of agrochemicals, the Government has set up 71 pesticides testing laboratories across the country that include 68 state laboratories, 2 regional laboratories and 1 central laboratory. Manufacturing units should adopt GMP (good manufacturing practices) and take all such measures that are necessary to ensure delivery of quality products to the farmers. Shri Indrajit Pal also informed that the Institute of Agrochemicals Formulation Technology (IPFT), an autonomous body of the Department of Chemicals and Petrochemicals, has been developing state-of-the-art user and environment friendly formulations for the agrochemicals industry. During the last 5-6 years, IPFT has developed many formulations and transferred them to the industries. He urged the industry to take full advantage of the facilities offered by the institute.
The Conference has been organised jointly by Federation of Indian Chambers of Commerce and Industry (FICCI), Departments of Chemicals & Petrochemicals, Department of Fertilizers and the Department of Agriculture & cooperation, Government of India. Tata Strategic Management Services (TSMG) are Knowledge and Strategy Partners and a Knowledge Paper on the sector was also released.
With nearly a 1.2 billion population, India requires a robust, modernized agriculture sector to ensure the food security for its population. Scope for further increasing cultivable land is limited. In order to meet the food grain requirements of the country, the agricultural productivity and its growth needs to be sustained and further improved. Pesticides or Agrochemicals are recognized as an essential input for increasing agricultural production and preventing crop loss before and after harvesting. Their judicious usage is very important for the sustained growth of Indian agriculture and economy.
India has low crop productivity as compared to other countries. Average productivity in India stands at 2 MT/ha as compared to 6 MT/ha in USA and world average of 3 MT/ha. At the same time, India’s pesticide consumption is also low at 0.60 kg/ha as compared to the world average of 3 kg/ha and for Japan 10.80 kgm. Hence, increased usage of pesticides could help the farmers to improve crop productivity. This also portrays the huge growth potential as the Indian economy moves forward.
The two-day conference will cover topics of relevance to the sector, incl. new developments, innovations, export potential as also issues such as spurious pesticides, regulatory regime etc. A large number of Captains of the chemical industry, academia, policy makers as also the end-users viz: the farmers were present.
The Secretary informed that for ensuring quality of agrochemicals, the Government has set up 71 pesticides testing laboratories across the country that include 68 state laboratories, 2 regional laboratories and 1 central laboratory. Manufacturing units should adopt GMP (good manufacturing practices) and take all such measures that are necessary to ensure delivery of quality products to the farmers. Shri Indrajit Pal also informed that the Institute of Agrochemicals Formulation Technology (IPFT), an autonomous body of the Department of Chemicals and Petrochemicals, has been developing state-of-the-art user and environment friendly formulations for the agrochemicals industry. During the last 5-6 years, IPFT has developed many formulations and transferred them to the industries. He urged the industry to take full advantage of the facilities offered by the institute.
The Conference has been organised jointly by Federation of Indian Chambers of Commerce and Industry (FICCI), Departments of Chemicals & Petrochemicals, Department of Fertilizers and the Department of Agriculture & cooperation, Government of India. Tata Strategic Management Services (TSMG) are Knowledge and Strategy Partners and a Knowledge Paper on the sector was also released.
With nearly a 1.2 billion population, India requires a robust, modernized agriculture sector to ensure the food security for its population. Scope for further increasing cultivable land is limited. In order to meet the food grain requirements of the country, the agricultural productivity and its growth needs to be sustained and further improved. Pesticides or Agrochemicals are recognized as an essential input for increasing agricultural production and preventing crop loss before and after harvesting. Their judicious usage is very important for the sustained growth of Indian agriculture and economy.
India has low crop productivity as compared to other countries. Average productivity in India stands at 2 MT/ha as compared to 6 MT/ha in USA and world average of 3 MT/ha. At the same time, India’s pesticide consumption is also low at 0.60 kg/ha as compared to the world average of 3 kg/ha and for Japan 10.80 kgm. Hence, increased usage of pesticides could help the farmers to improve crop productivity. This also portrays the huge growth potential as the Indian economy moves forward.
The two-day conference will cover topics of relevance to the sector, incl. new developments, innovations, export potential as also issues such as spurious pesticides, regulatory regime etc. A large number of Captains of the chemical industry, academia, policy makers as also the end-users viz: the farmers were present.
Global Healthcare Summit 2014 aims at bringing affordable healthcare to India
New Delhi: The Indian-American doctors’ community plans to organise the “Global Healthcare Summit” in Ahmedabad, Gujarat, from January 3-5, 2014, to bring affordable world class healthcare for Indians.
“The Association of American Physicians of Indian Origin (AAPI) would like to make a positive and meaningful impact on the healthcare in India,” said Dr Jayesh Shah, President, AAPI.
Global Healthcare Summit 2014 aims at advancing the accessibility, affordability and quality of world-class healthcare to the Indian people. The Summit will also focus on prevention, diagnosis, treatment options and share ways to truly improve healthcare transcending global boundaries, Dr Shah added.
Healthcare in India is one of the largest sectors in terms of revenue and employment. “AAPI has been engaged in harnessing the power of Indian diaspora to bring the most innovative, efficient, cost effective healthcare solutions to India,” Dr Shah further highlighted.
AAPI has organised seven Indo-US Global Healthcare Summits and has also developed strategic alliances with various organisations.
“The Association of American Physicians of Indian Origin (AAPI) would like to make a positive and meaningful impact on the healthcare in India,” said Dr Jayesh Shah, President, AAPI.
Global Healthcare Summit 2014 aims at advancing the accessibility, affordability and quality of world-class healthcare to the Indian people. The Summit will also focus on prevention, diagnosis, treatment options and share ways to truly improve healthcare transcending global boundaries, Dr Shah added.
Healthcare in India is one of the largest sectors in terms of revenue and employment. “AAPI has been engaged in harnessing the power of Indian diaspora to bring the most innovative, efficient, cost effective healthcare solutions to India,” Dr Shah further highlighted.
AAPI has organised seven Indo-US Global Healthcare Summits and has also developed strategic alliances with various organisations.
Second India-US-Africa triangular agricultural training program launched
Kolkata: The United States and India, on Tuesday (July 30), launched the second India-US-Africa triangular agricultural training program supported by the US government's global hunger and food security initiative Feed the Future. This partnership aims to improve agricultural productivity and support market insti-tutions in Kenya, Liberia, and Malawi, according to an email statement from the US Consulate General's office in Kolkata.
United States Agency for International Development (USAID) Food Security Office director Bahiru Duguma kicked off this initiative. Mr Duguma explained that, as part of the broader US-India global partnership, the triangular engagement "will share proven innovations from India's private and public sector to address food insecurity, malnutrition, and poverty in the target African countries."
The program will train 180 agricultural professionals from these three African countries by providing marketing and extension management training at the Chaudhury Charan Singh National Institute of Agricultural Marketing (NIAM) in Jaipur and at the National Institute of Agricultural Extension Management in Hyderabad. The initiative, led by USAID and NIAM, is part of a three-year training program and one of several activities resulting from the global strategic partnership announced by Indian Prime Minister Manmohan Singh and US President Barak Obama in 2010.
United States Agency for International Development (USAID) Food Security Office director Bahiru Duguma kicked off this initiative. Mr Duguma explained that, as part of the broader US-India global partnership, the triangular engagement "will share proven innovations from India's private and public sector to address food insecurity, malnutrition, and poverty in the target African countries."
The program will train 180 agricultural professionals from these three African countries by providing marketing and extension management training at the Chaudhury Charan Singh National Institute of Agricultural Marketing (NIAM) in Jaipur and at the National Institute of Agricultural Extension Management in Hyderabad. The initiative, led by USAID and NIAM, is part of a three-year training program and one of several activities resulting from the global strategic partnership announced by Indian Prime Minister Manmohan Singh and US President Barak Obama in 2010.
Tuesday, July 30, 2013
L&T bags Rs 8,250 crore job in Riyadh metro project
New Delhi: Larsen & Toubro has bagged an order worth $1.4 billion (Rs 8,250 crore) from ArRiyadh Development Authority, Kingdom of Saudi Arabia for the design, construction and commissioning of a metro project in Riyadh, Saudi Arabia, the Mumbai-headquartered engineering major said Monday.
The project would be executed by the heavy civil infrastructure business unit of the construction division of L&T. L&T bagged the project as a part of a consortium that included Ansaldo STS of Italy, Bombardier Transportation of UK, Impregilo S.p.A of Italy, Nesma & Partners of Saudi Arabia. The total value of order is $5.94 billion (approximately Rs 35,000 crore), of which the job to be done by L&T is worth $1.4 billion.
The project will be executed in four years, which will be preceded by eight months to prepare the detailed designs and to carry out the enabling works, the coordination for utilities diversion and the site preparation works. Upon completions, the consortium would have four months for system demonstration, trial runs and project handing over. The scope of the order entails design, construction and commissioning of a 41 km-driverless train operation that can carry around 5,000 passengers every hour.
"This order was won against stiff global competition. It aligns well with L&T's expansion plans in the international arena," the company said in a release.
At 12:40 IST, shares of L&T were trading at Rs 853 on the Bombay Stock Exchange, up around 0.9% from Friday.
The project would be executed by the heavy civil infrastructure business unit of the construction division of L&T. L&T bagged the project as a part of a consortium that included Ansaldo STS of Italy, Bombardier Transportation of UK, Impregilo S.p.A of Italy, Nesma & Partners of Saudi Arabia. The total value of order is $5.94 billion (approximately Rs 35,000 crore), of which the job to be done by L&T is worth $1.4 billion.
The project will be executed in four years, which will be preceded by eight months to prepare the detailed designs and to carry out the enabling works, the coordination for utilities diversion and the site preparation works. Upon completions, the consortium would have four months for system demonstration, trial runs and project handing over. The scope of the order entails design, construction and commissioning of a 41 km-driverless train operation that can carry around 5,000 passengers every hour.
"This order was won against stiff global competition. It aligns well with L&T's expansion plans in the international arena," the company said in a release.
At 12:40 IST, shares of L&T were trading at Rs 853 on the Bombay Stock Exchange, up around 0.9% from Friday.
One-fourth of MF assets now via direct plans
Mumbai:
ALSO READ: Mutual funds lick wounds after mass redemption
“Higher returns from direct plans are an outcome of lower expense ratio for these plans as distribution costs are excluded,” said Sandeep Sabharwal, senior director, capital markets, CRISIL.
A comparison of returns between direct and regular plans for the quarter ended June shows long-term income funds category outperformed by 0.76 per cent on an annualised basis. Investment through direct plans of tax-saver equity linked savings scheme (ELSS) and monthly income plans (MIPs) helped investors clock better returns of roughly 0.65 percent.
Mutual fund officials said so far, institutional investors and high net worth individuals were shifting to direct plans mainly for liquid scheme investments. Though the cost under direct plans of liquid schemes is just about 0.05 percent cheaper, the savings are sizable for corporate investors because they invest thousands of crores.
ALSO READ: Sebi rejigs its advisory committee on mutual fund
“In future, more institutional investors and high net worth individuals are likely to shift to direct plans as these investors are far more capable at taking informed investment decisions. Retail investors, too, could start shifting to these plans as awareness about the benefits of these plans increases,” said Sabharwal.
The AUM of debt funds under the direct plans nearly tripled to Rs 69,500 crore as of June 30 from Rs 24,700 crore in the previous quarter. Within the debt fund fold, money market funds were the
Investors are increasingly opting to put money in debt mutual fund schemes through direct plans, rather than tapping the services of distributors. A study by CRISIL Research shows direct plans, introduced on January 1, constitute 25 per cent of the mutual fund sector’s total average assets under management (AUM) for the quarter ended June 30, against 15 per cent in the previous quarter. AUMs under direct plans rose almost 70 per cent to Rs 2.14 lakh crore during the June quarter, compared with the March quarter-end, according to CRISIL. Debt schemes constituted 98 per cent of the total AUM under direct plans, it said.
Through direct plans, investors can put money in schemes at a lower cost because there are no distributor charges. This boosts the returns of the schemes over the long run because of cost savings.
highest contributors to the direct plan AUM in absolute terms. Liquid funds’ AUM rose by Rs 24,400 crore to touch the Rs 1 lakh crore at the end of the June quarter. AUM under ultra short-term funds rose by Rs 16,200 crore to Rs 35,900 crore.
ALSO READ: Mutual funds lick wounds after mass redemption
“Higher returns from direct plans are an outcome of lower expense ratio for these plans as distribution costs are excluded,” said Sandeep Sabharwal, senior director, capital markets, CRISIL.
A comparison of returns between direct and regular plans for the quarter ended June shows long-term income funds category outperformed by 0.76 per cent on an annualised basis. Investment through direct plans of tax-saver equity linked savings scheme (ELSS) and monthly income plans (MIPs) helped investors clock better returns of roughly 0.65 percent.
Mutual fund officials said so far, institutional investors and high net worth individuals were shifting to direct plans mainly for liquid scheme investments. Though the cost under direct plans of liquid schemes is just about 0.05 percent cheaper, the savings are sizable for corporate investors because they invest thousands of crores.
ALSO READ: Sebi rejigs its advisory committee on mutual fund
“In future, more institutional investors and high net worth individuals are likely to shift to direct plans as these investors are far more capable at taking informed investment decisions. Retail investors, too, could start shifting to these plans as awareness about the benefits of these plans increases,” said Sabharwal.
The AUM of debt funds under the direct plans nearly tripled to Rs 69,500 crore as of June 30 from Rs 24,700 crore in the previous quarter. Within the debt fund fold, money market funds were the
Investors are increasingly opting to put money in debt mutual fund schemes through direct plans, rather than tapping the services of distributors. A study by CRISIL Research shows direct plans, introduced on January 1, constitute 25 per cent of the mutual fund sector’s total average assets under management (AUM) for the quarter ended June 30, against 15 per cent in the previous quarter. AUMs under direct plans rose almost 70 per cent to Rs 2.14 lakh crore during the June quarter, compared with the March quarter-end, according to CRISIL. Debt schemes constituted 98 per cent of the total AUM under direct plans, it said.
Through direct plans, investors can put money in schemes at a lower cost because there are no distributor charges. This boosts the returns of the schemes over the long run because of cost savings.
highest contributors to the direct plan AUM in absolute terms. Liquid funds’ AUM rose by Rs 24,400 crore to touch the Rs 1 lakh crore at the end of the June quarter. AUM under ultra short-term funds rose by Rs 16,200 crore to Rs 35,900 crore.
.Wind sector attracted $ 210 mn VC funding during April-June: Mercom
New Delhi: The wind sector attracted about $ 210 million investments globally from venture capital (VC) funds during April-June. This is against $16 million investments in the sector during the previous three months of January-March.
The investments have picked up with the help of some large deals going to project developers in India, said Mercom Capital Group, llc, a global clean energy communications and consulting firm.
The funds investing in India include ReNew Power where Goldman Sachs has invested $135 million. This has raised the total investment by the global investment banking, securities and management firm in the Indian company to $385 million.
Another project developer from India, NSL Renewable Power, received $60 million in funding from multiple investors. Further, in two smaller funding deals, IDEOL, a designer and installer of foundations for offshore wind projects, raised $9.1 million, and $6.2 million was received by ROMO Wind, a wind technology company focused on improving wind turbine rotor function.
Mercom Capital said that large-scale project funding during April-June totalled $3.2 billion in 24 deals compared to $ 6.2 billion in 29 deals in January-March. There were a total of 42 investors that participated in project funding deals during April-June.
“The strong project acquisition activity shows how wind has evolved into a mature and mainstream energy source and an attractive investment for both private and public firms alike,” said Raj Prabhu, CEO of Mercom Capital.
M&A deals
There were six mergers and acquisitions (M&A) transactions during April-June, amounting to $ 328 million.
These include acquisition of Salus Fundos de Investimento em Participacoes (Salus) by Copel for nearly $128 million. PNE WIND purchased a 54 per cent share in WKN from former shareholder Volker Friedrichsen Beteiligungs for $122 million. Aksa Energy acquired 93 percent stake in Kapidag Ruzgar Enerjisi Elektrik Uretim for $67 million. Marmen, a high-precision machining, fabrication and mechanical assembly company, acquired a wind tower plant from Broadwind Energy, an independent services provider for $11.7 million. Makani Power was acquired by Google for an undisclosed amount reportedly for its secret Google X skunkworks lab and Urban Wind acquired Myriad Wind for an undisclosed amount.
The investments have picked up with the help of some large deals going to project developers in India, said Mercom Capital Group, llc, a global clean energy communications and consulting firm.
The funds investing in India include ReNew Power where Goldman Sachs has invested $135 million. This has raised the total investment by the global investment banking, securities and management firm in the Indian company to $385 million.
Another project developer from India, NSL Renewable Power, received $60 million in funding from multiple investors. Further, in two smaller funding deals, IDEOL, a designer and installer of foundations for offshore wind projects, raised $9.1 million, and $6.2 million was received by ROMO Wind, a wind technology company focused on improving wind turbine rotor function.
Mercom Capital said that large-scale project funding during April-June totalled $3.2 billion in 24 deals compared to $ 6.2 billion in 29 deals in January-March. There were a total of 42 investors that participated in project funding deals during April-June.
“The strong project acquisition activity shows how wind has evolved into a mature and mainstream energy source and an attractive investment for both private and public firms alike,” said Raj Prabhu, CEO of Mercom Capital.
M&A deals
There were six mergers and acquisitions (M&A) transactions during April-June, amounting to $ 328 million.
These include acquisition of Salus Fundos de Investimento em Participacoes (Salus) by Copel for nearly $128 million. PNE WIND purchased a 54 per cent share in WKN from former shareholder Volker Friedrichsen Beteiligungs for $122 million. Aksa Energy acquired 93 percent stake in Kapidag Ruzgar Enerjisi Elektrik Uretim for $67 million. Marmen, a high-precision machining, fabrication and mechanical assembly company, acquired a wind tower plant from Broadwind Energy, an independent services provider for $11.7 million. Makani Power was acquired by Google for an undisclosed amount reportedly for its secret Google X skunkworks lab and Urban Wind acquired Myriad Wind for an undisclosed amount.
India and Senegal sign executive programme for cultural cooperation
New Delhi: India and Senegal enjoy age-old friendly relations and to reaffirm their commitment to have sustained cultural exchanges by signing “Executive Programme for Cultural Cooperation” between India and Senegal for the period 2013-2015 on 29th July 2013 at New Delhi. The Executive Programme for Cultural Cooperation was signed by Smt. Chandresh Kumari Katoch, Minister of Culture on behalf of Government of India and by H.E. Mr. Adboul Aziz Mbaye, Minister of Culture, on behalf of Government of Republic of Senegal. The Executive Programme for Cultural Cooperation is valid for three years. Thereafter, however, it will continue to be in force till a fresh Exchange Programme is signed.
The Executive Programme for Cultural Cooperation seeks to:
Exchange the Experts in the field of theatre.
Encourage Training in the areas of artistic heritage, creative activities, audio visual, music, dance, theatre and puppetry
Exchange the publications on cultural heritage.
Exchange canvas works and grounding mats for exhibition.
Exchange experts in the field of prehistoric archaeology; provide Laboratory training in the field of restoration of cultural properties and monuments.
Exchange experts reciprocally with a view to promoting library activities and expertise in the fields of publishing, printing and binding.
Exchange programmes depicting various facets of life and culture in the two parties through their respective Radio and TV organizations.
Exchange experiences in the field of sports and explore the possibilities of exchanging sports teams/coaches in diverse disciplines.
Organize cultural week featuring various aspects of its culture
Exchange1-2 experts in the field of Performing Arts and literature.
The Executive Programme for Cultural Cooperation seeks to:
Exchange the Experts in the field of theatre.
Encourage Training in the areas of artistic heritage, creative activities, audio visual, music, dance, theatre and puppetry
Exchange the publications on cultural heritage.
Exchange canvas works and grounding mats for exhibition.
Exchange experts in the field of prehistoric archaeology; provide Laboratory training in the field of restoration of cultural properties and monuments.
Exchange experts reciprocally with a view to promoting library activities and expertise in the fields of publishing, printing and binding.
Exchange programmes depicting various facets of life and culture in the two parties through their respective Radio and TV organizations.
Exchange experiences in the field of sports and explore the possibilities of exchanging sports teams/coaches in diverse disciplines.
Organize cultural week featuring various aspects of its culture
Exchange1-2 experts in the field of Performing Arts and literature.
Prime Minister's Council on trade & industry
New Delhi: The Prime Minister's Council on Trade & Industry met today to discuss issues concerning the Indian economy. The agenda focused on measures to correct the Current Account Deficit; the slowdown of industrial growth and measures to revive it; depreciation of the Rupee and its impact on trade and industry; skill development and development of industrial corridors.
The meeting was attended by the Finance Minister, the Commerce & Industries Minister, Deputy Chairman of the Planning Commission, Chairman of the National Manufacturing Competitiveness Council, Chairman of PM's Economic Advisory Council, senior officials of the government and from the industry, Shri Rahul Bajaj, Dr. Ashok Ganguly, Shri Mukesh D. Ambani, Shri Narayana Murthy, Shri Azim Premji, Ms. Swati Piramal, Shri Deepak Parekh, Shri Jamshyd N. Godrej, Ms. Chanda Kochhar, Shri Venu Srinivasan, Shri Sunil Kant Munjal, Shri S. Gopalakrishnan, Dr. Rana Kapoor, Shri Sunil B. Mittal, Smt. Naina Lal Kidwai.
The Prime Minister welcomed the gathering and invited the captains of industry to give suggestions to improve the economy and remove the mood of pessimism that has unnecessarily spread in some quarters. The Finance and Commerce Ministers then briefed the Council on the government's thoughts on the agenda.
There was a detailed and lengthy discussion on the issues. While some expressed their concerns, some gave concrete suggestions on how to improve matters.
The overall sentiment was on the need to bring back the mood, converting decisions to action and taking the country back to a growth path of 8% or more.
The Prime Minister concluded by thanking the Council for its suggestions. He said it was a rewarding discussion. The Prime Minister wanted a report to be submitted within one month on what can be done in the next 2-3 months.
S.No CAD Reviving growth Industrial Corridors Skill Development
1 Raising duties on consumers and luxury goods Focus as much on growth as on inclusion Have sector specific zones and clusters Need good certification on a vast scale
2 Innovative ways of reducing gold imports through bonds, etc Extend accelerated depreciation to SMEs Have effcient single window clearances and good facilitation Focus on home service market
3 Reducing conditions on FDI and speed up FIPB Removing bottlenecks of pharma sector and increasing R&D Give out pre-cleared projects Using NREGA for skill development
4 Have a sovereign bond and reciprocal swaplines Moratorium on loan repayment for delayed projects Accelerate the Amritsar-Delhi-Kolkatta Corridor as this region is vital for growth
5 Accelerate software exports by easing domestic movement of people, resolve the tax issues, make inward visas easier and taking up the Visa Bill with USA Focussing on annuity based PPP Projects.
6 Raise easy resources by selling SUUTI, BALCO, HZL shares. Restore cash flows of firms by paying receivables
7 Boost agriculture exports Boosting domestic electronic manufacture
8 Bringing off shore Rupee market on shore Use PSU land for industrial parks
9 Improve Coal India operations through PPP Restart renewable energy projects
10 Boost textile exports Focus on incumbent investors for the short run
11 Resolve the tax issues and remove tax uncertainty
12 Using Government procurement to boost local Industry
13 Focusing on urban infrastructure
The meeting was attended by the Finance Minister, the Commerce & Industries Minister, Deputy Chairman of the Planning Commission, Chairman of the National Manufacturing Competitiveness Council, Chairman of PM's Economic Advisory Council, senior officials of the government and from the industry, Shri Rahul Bajaj, Dr. Ashok Ganguly, Shri Mukesh D. Ambani, Shri Narayana Murthy, Shri Azim Premji, Ms. Swati Piramal, Shri Deepak Parekh, Shri Jamshyd N. Godrej, Ms. Chanda Kochhar, Shri Venu Srinivasan, Shri Sunil Kant Munjal, Shri S. Gopalakrishnan, Dr. Rana Kapoor, Shri Sunil B. Mittal, Smt. Naina Lal Kidwai.
The Prime Minister welcomed the gathering and invited the captains of industry to give suggestions to improve the economy and remove the mood of pessimism that has unnecessarily spread in some quarters. The Finance and Commerce Ministers then briefed the Council on the government's thoughts on the agenda.
There was a detailed and lengthy discussion on the issues. While some expressed their concerns, some gave concrete suggestions on how to improve matters.
The overall sentiment was on the need to bring back the mood, converting decisions to action and taking the country back to a growth path of 8% or more.
The Prime Minister concluded by thanking the Council for its suggestions. He said it was a rewarding discussion. The Prime Minister wanted a report to be submitted within one month on what can be done in the next 2-3 months.
S.No CAD Reviving growth Industrial Corridors Skill Development
1 Raising duties on consumers and luxury goods Focus as much on growth as on inclusion Have sector specific zones and clusters Need good certification on a vast scale
2 Innovative ways of reducing gold imports through bonds, etc Extend accelerated depreciation to SMEs Have effcient single window clearances and good facilitation Focus on home service market
3 Reducing conditions on FDI and speed up FIPB Removing bottlenecks of pharma sector and increasing R&D Give out pre-cleared projects Using NREGA for skill development
4 Have a sovereign bond and reciprocal swaplines Moratorium on loan repayment for delayed projects Accelerate the Amritsar-Delhi-Kolkatta Corridor as this region is vital for growth
5 Accelerate software exports by easing domestic movement of people, resolve the tax issues, make inward visas easier and taking up the Visa Bill with USA Focussing on annuity based PPP Projects.
6 Raise easy resources by selling SUUTI, BALCO, HZL shares. Restore cash flows of firms by paying receivables
7 Boost agriculture exports Boosting domestic electronic manufacture
8 Bringing off shore Rupee market on shore Use PSU land for industrial parks
9 Improve Coal India operations through PPP Restart renewable energy projects
10 Boost textile exports Focus on incumbent investors for the short run
11 Resolve the tax issues and remove tax uncertainty
12 Using Government procurement to boost local Industry
13 Focusing on urban infrastructure
Monday, July 29, 2013
ITC aims Rs 1-lakh-cr turnover from new FMCG biz by '25
The company is aiming to create global Indian brands in the years to come
Kolkata: Diversified conglomerate ITC is aiming to clock in a turnover of Rs 1 lakh crore from its brands in the new fast-moving consumer goods (FMCG) businesses by 2025.
“It is within the realm of possibility that your company can achieve a turnover of over Rs 1 lakh crore from its brands in the new FMCG businesses by 2025/30,” Chairman Y C Deveshwar, said addressing shareholders at the company’s annual general meeting.
The company is aiming to create global Indian brands in the years to come. Its new FMCG businesses have gained traction with the top line having exceeded Rs 7,000 crore in the year gone by, Deveshwar said. The non-cigarette FMCG business will break-even this year and will hopefully be profitable from next year.
ALSO READ: Tobacco, agri businesses push ITC net up 18%
There were, however, problems in the growth path, as Deveshwar pointed out the company has still not been able to invest the Rs 26,000 crore it had outlined three years back. The main stumbling block happened to be land.
“We have invested Rs 2,000 crore in FY13 and should invest about Rs 6,000-7,000 crore this year,” Deveshwar told reporters later in the day.
All the projects of ITC have got delayed primarily due to delay in possession of land. “First, getting land is a problem and then once you get it, conversion for manufacturing is another issue,” he said.
ALSO READ: ITC dips on profit booking post June quarter earnings
Unlike other companies, Deveshwar pointed out, ITC would not have to go to banks for funds, it was cash-rich. “We are just waiting to invest,” he said.
As on March 31, ITC’s reserves and surplus stood at Rs 21,497 crore.
Deveshwar said the cigarette business provided the basis for cash flows that were enabling the creation of world class Indian brands in multiple consumer segments.
“They are also the basis for building capital intensive hotels and paperboard businesses,” he added.
ALSO READ: Tobacco, agri businesses push ITC net up 18%
Executive Director Nakul Anand said the hotel business would see an addition of 600-700 rooms in the current financial year. “Five to six properties will be added this year. A total of 15-18 projects are underway which would be a mix of owned and managed hotels,” he said.
The company has recently launched personal care brands such as Essenza Di Wills, Fiama Di Wills, Vivel and Superia which have been well received by the consumer, indicated Deveshwar.
Stressing on the need for having a global identity, Deveshwar said, “The mission is to create unique products, born out of deep consumer insight to win growing consumer franchise and build world class brands that would progressively dominate the Indian global market.”
ITC’s brands such as Aashirvaad and Sunfeast have already garnered annualised consumer spends of over Rs 2,000 crore each. While the former brand is a clear market leader in its segment, Sunfeast Dark Fantasy has emerged as a leader in the premium cream biscuits category, the chairman claimed.
According to him brands like Bingo!, Candyman, and Vivel were estimated to have attracted consumer spends of over Rs 500 crore each.
Kolkata: Diversified conglomerate ITC is aiming to clock in a turnover of Rs 1 lakh crore from its brands in the new fast-moving consumer goods (FMCG) businesses by 2025.
“It is within the realm of possibility that your company can achieve a turnover of over Rs 1 lakh crore from its brands in the new FMCG businesses by 2025/30,” Chairman Y C Deveshwar, said addressing shareholders at the company’s annual general meeting.
The company is aiming to create global Indian brands in the years to come. Its new FMCG businesses have gained traction with the top line having exceeded Rs 7,000 crore in the year gone by, Deveshwar said. The non-cigarette FMCG business will break-even this year and will hopefully be profitable from next year.
ALSO READ: Tobacco, agri businesses push ITC net up 18%
There were, however, problems in the growth path, as Deveshwar pointed out the company has still not been able to invest the Rs 26,000 crore it had outlined three years back. The main stumbling block happened to be land.
“We have invested Rs 2,000 crore in FY13 and should invest about Rs 6,000-7,000 crore this year,” Deveshwar told reporters later in the day.
All the projects of ITC have got delayed primarily due to delay in possession of land. “First, getting land is a problem and then once you get it, conversion for manufacturing is another issue,” he said.
ALSO READ: ITC dips on profit booking post June quarter earnings
Unlike other companies, Deveshwar pointed out, ITC would not have to go to banks for funds, it was cash-rich. “We are just waiting to invest,” he said.
As on March 31, ITC’s reserves and surplus stood at Rs 21,497 crore.
Deveshwar said the cigarette business provided the basis for cash flows that were enabling the creation of world class Indian brands in multiple consumer segments.
“They are also the basis for building capital intensive hotels and paperboard businesses,” he added.
ALSO READ: Tobacco, agri businesses push ITC net up 18%
Executive Director Nakul Anand said the hotel business would see an addition of 600-700 rooms in the current financial year. “Five to six properties will be added this year. A total of 15-18 projects are underway which would be a mix of owned and managed hotels,” he said.
The company has recently launched personal care brands such as Essenza Di Wills, Fiama Di Wills, Vivel and Superia which have been well received by the consumer, indicated Deveshwar.
Stressing on the need for having a global identity, Deveshwar said, “The mission is to create unique products, born out of deep consumer insight to win growing consumer franchise and build world class brands that would progressively dominate the Indian global market.”
ITC’s brands such as Aashirvaad and Sunfeast have already garnered annualised consumer spends of over Rs 2,000 crore each. While the former brand is a clear market leader in its segment, Sunfeast Dark Fantasy has emerged as a leader in the premium cream biscuits category, the chairman claimed.
According to him brands like Bingo!, Candyman, and Vivel were estimated to have attracted consumer spends of over Rs 500 crore each.
Natco ready to launch generic Copaxone in US
Launch, however, subject to approval of US Food and Drug Administration
New Delhi: Hyderabad-based drug maker Natco Pharma said a US court of appeals for the federal circuit ruling had paved the way for it to launch the generic Copaxone through its marketing partner Mylan during May 2014.
The launch is, however, subject to the approval of the US Food and Drug Administration. Natco said in Hyderabad on Saturday the US court had reversed a district court’s finding related to Teva’s US patent for Copaxone.
This means it may launch generic version of the drug. Copaxone (glatiramer acetate) is used in the treatment of relapsing-remitting multiple sclerosis. The product is estimated to have had sales in the US of $3.45 billion during 2012.
New Delhi: Hyderabad-based drug maker Natco Pharma said a US court of appeals for the federal circuit ruling had paved the way for it to launch the generic Copaxone through its marketing partner Mylan during May 2014.
The launch is, however, subject to the approval of the US Food and Drug Administration. Natco said in Hyderabad on Saturday the US court had reversed a district court’s finding related to Teva’s US patent for Copaxone.
This means it may launch generic version of the drug. Copaxone (glatiramer acetate) is used in the treatment of relapsing-remitting multiple sclerosis. The product is estimated to have had sales in the US of $3.45 billion during 2012.
India firms line up $100-m investments in Bangladesh
New Delhi: A number of Indian and Bangladeshi companies signed proposals for setting up projects in sectors such as limousine services, manufacturing three-wheelers and software development during road shows held in Chennai and Mumbai recently, officials of the Confederation of Indian Industry (CII) told Business Line.
The private sector initiative comes even as the Indian Government is doing its bit to bolster relations between the two countries.
Foreign Secretary Ranjan Mathai had told newspersons ahead of the President’s visit to Bangladesh earlier this year that Indian trade and industry had told the Government that it continues to see Bangladesh as a “very, very important partner”, and it would like to take forward plans for investment, trade and joint ventures between the two countries.
In March, senior officials of the Ministry of External Affairs had told newspersons that in the last six months or so 38 Indian investments had been registered with the Board of Investments in Bangladesh for about $183 million.
Major Indian companies such as Bharti Airtel, Tata Motors, Sun Pharma, Asian Paints, Marico, Godrej, Venky’s Hatcheries, Parle Products, Forbes and Marshall had invested in Bangladesh in the recent past.
Further, 14 projects worth nearly $736 million out of the $800-million Line of Credit which was signed between the two countries in 2010 have been approved. These include 11 projects valued at about $630 million in the railways sector for supply of locomotives, tank wagons, flat wagons and brake wagons to Bangladesh.
The private sector initiative comes even as the Indian Government is doing its bit to bolster relations between the two countries.
Foreign Secretary Ranjan Mathai had told newspersons ahead of the President’s visit to Bangladesh earlier this year that Indian trade and industry had told the Government that it continues to see Bangladesh as a “very, very important partner”, and it would like to take forward plans for investment, trade and joint ventures between the two countries.
In March, senior officials of the Ministry of External Affairs had told newspersons that in the last six months or so 38 Indian investments had been registered with the Board of Investments in Bangladesh for about $183 million.
Major Indian companies such as Bharti Airtel, Tata Motors, Sun Pharma, Asian Paints, Marico, Godrej, Venky’s Hatcheries, Parle Products, Forbes and Marshall had invested in Bangladesh in the recent past.
Further, 14 projects worth nearly $736 million out of the $800-million Line of Credit which was signed between the two countries in 2010 have been approved. These include 11 projects valued at about $630 million in the railways sector for supply of locomotives, tank wagons, flat wagons and brake wagons to Bangladesh.
CIL signs 82 FSAs for about 34,793 MW capacity power plants
New Delhi: Providing a big boost to the power sector, Coal India Limited (CIL) has signed 82 FSAs as on 25.07.2013, with power stations with a capacity of 34,793 MW. This includes 16 power stations belonging to NTPC and its Joint Venture companies (JVs).
11 more FSAs are ready to be signed shortly with NTPC or its JVs, while another 23 FSAs with State and private sector entities are in the pipeline. These FSAs were part of the 131 FSAs for a capacity of 60,678 MW which CIL was directed to sign in February, 2012. This will substantially increase the power generation during the current and subsequent years.
In yet another fillip to the power sector, Ministry of Coal has issued another Presidential Directive to CIL on 17.07.2013 for signing of FSAs for a capacity of 78,000 MW instead of the earlier 60,678 MW. This will not only increase the power generation further but will also fast track several power projects which are under development.
11 more FSAs are ready to be signed shortly with NTPC or its JVs, while another 23 FSAs with State and private sector entities are in the pipeline. These FSAs were part of the 131 FSAs for a capacity of 60,678 MW which CIL was directed to sign in February, 2012. This will substantially increase the power generation during the current and subsequent years.
In yet another fillip to the power sector, Ministry of Coal has issued another Presidential Directive to CIL on 17.07.2013 for signing of FSAs for a capacity of 78,000 MW instead of the earlier 60,678 MW. This will not only increase the power generation further but will also fast track several power projects which are under development.
Over 1759 MW of projects commissioned under National Solar Mission
Chennai: Over 1759.43 megawatts (MW) of grid connected solar power projects have been commissioned in the country as on 31 May 2013, under the Jawaharlal Nehru National Solar Mission (JNNSM).
The JNNSM programme is the ministry of new and renewable energy's three-phase approach to encourage the adoption of solar power in India, and is being done in different batches under the three broad phases.
Eleven projects of 50.50 MW capacity under migration scheme, 26 projects of 130 MW capacity under Batch-I of the solar mission and 69 projects totalling 88.80 MW of small capacity power projects have been commissioned, according to a statement from the press information bureau (PIB).
A total capacity of 252.50 MW off-grid solar power projects has been sanctioned and 60 MW have been commissioned. About 70.01 lakh sq. meter of collector area of solar thermal systems have been installed against a target of 70 lakh sq. meter of collector area, the PIB statement said.
The JNNSM was launched on 11January 2010 with the target of deploying 20,000 MW of grid connected solar power by 2022. The first phase of this mission aims to commission 1000MW of grid-connected solar power projects by 2013, having been launched last year. The second phase is to last until 2017 and the third will be on till 2022 with the aim of reaching 20 gigawatt (GW).
The Batch-I of the second phase, which includes off-grid projects, was expected to begin by April 1 2013, but has been delayed.
The JNNSM programme is the ministry of new and renewable energy's three-phase approach to encourage the adoption of solar power in India, and is being done in different batches under the three broad phases.
Eleven projects of 50.50 MW capacity under migration scheme, 26 projects of 130 MW capacity under Batch-I of the solar mission and 69 projects totalling 88.80 MW of small capacity power projects have been commissioned, according to a statement from the press information bureau (PIB).
A total capacity of 252.50 MW off-grid solar power projects has been sanctioned and 60 MW have been commissioned. About 70.01 lakh sq. meter of collector area of solar thermal systems have been installed against a target of 70 lakh sq. meter of collector area, the PIB statement said.
The JNNSM was launched on 11January 2010 with the target of deploying 20,000 MW of grid connected solar power by 2022. The first phase of this mission aims to commission 1000MW of grid-connected solar power projects by 2013, having been launched last year. The second phase is to last until 2017 and the third will be on till 2022 with the aim of reaching 20 gigawatt (GW).
The Batch-I of the second phase, which includes off-grid projects, was expected to begin by April 1 2013, but has been delayed.
Friday, July 26, 2013
Fashion designing in vogue
Mumbai: India's management education segment isn't the only attraction for national and international players; fashion designing also ranks high on their popularity lists.
After France-based Lisaa School of Design, which opened a centre in India two years ago, the latest entrant in the segment is Italy-based Istituto Marangoni, which set up an office in Mumbai, the first in India, last week. The institute's liaison office would help Indian student secure admissions to its campuses in Milan, London, Shanghai and Paris, and forge partnerships in fashion and design with the entities concerned in India.
Another recent entrant was film-maker Subhash Ghai-promoted Whistling Woods International, which set up a fashion school in partnership with fashion designer Neeta Lulla. The school, Whistling Woods-Neeta Lulla School of Fashion, would commence classes next month in Mumbai. The school, of which Lulla would be the dean, would offer a one-year diploma in fashion design for Rs 5 lakh and a two-year advanced diploma for Rs 8.36 lakh.
These schools, in addition to the existing National Institute of Fashion Technology (NIFT) (which has 15 centres), National Institute of Design (three centres) and Pearl Academy of Fashion, would cater to the growing demands of India's fashion industry. According to estimates, the Indian design and fashion industry is worth Rs 20,000 crore. Of this, branded wear accounts for about a fifth. Over and above this, there are segments such as footwear design, product design and accessories design, which are yet to be fully tapped.
Dario Cattaneo, group sales director at Istituto Marangoni, said, "We are looking to expand our business outside Europe. We have seen a 20 per cent growth year-on-year in the number of Indian students coming to our campus."
Lisaa School of Design provides an exchange programme and an option for students to complete their final course year or the final project in France. "The art and design scene in Europe, especially Paris, is more culturally and deeply entrenched. We can't separate Lisaa from the essence of French art and design, which is exactly the flavour we wish for our Indian students to experience," said Sarabjit Singh, chief executive of Lisaa School of Design, India.
Lisaa France, which has been around for about 30 years, has campuses in Paris, Nantes, Rennes and Strasbourg.
The school, which began operations in India with four students, now has 100 students across many of its programmes. In terms of placements, it partners about 200 brands, firms and design houses, including Eurodisney, Alstom, Habitat, Ikea, BNP Paribas, Louis Vuitton Moet Hannessy, Hermes Paris, Prada, Alcatel, Saatchi & Saatchi and Christian Dior.
Growing fashion awareness among Indians, good placements and the ease of launching one's own label in fashion designing makes this segment exciting and popular. Yashika Rama (name changed), who graduated from NIFT-Delhi two years ago, has set up her own boutique in South Delhi. The boutique records an annual turnover of Rs 6 crore.
"These days, being fashion-conscious means being aware. I have clients as young as 14 who know what fashion is all about. Growing awareness means more business for fashion designers," said Rama. She aims to double her turnover in the 18-24 months.
As many students graduating from design schools join companies that have design divisions, placements aren't an issue. While the salary packages varies, the list of companies keeps increasing, institutes say. For instance, at Pearl Academy in Delhi, while the count of recruiters was about 70 last year, about 100 companies came to the campus this year. At NIFT, Trident, a first-time recruiter, offered salaries of Rs 15 lakh a year to master's degree holders and Rs 9 lakh a year to bachelor's students, in the first round of placements. New firms visiting the campus included Adidas, Samsung, Hennes & Mauritz and Brand Marketing India.
The average salary for an entry-level position for a fashion technology or design student ranges from Rs 3 lakh to Rs 6 lakh, depending on the size of the firm. If a student manages to secure a job at a design company run by celebrity designers such as Satya Paul, Ritu Kumar and Tarun Tahiliani, the starting salary is 20-30 per cent higher, experts say. An average fashion design course costs between Rs 5 lakh and Rs 20 lakh, depending on whether it is a national or an international institution.
Cattaneo says while the number of players in this segment is increasing, a better location and teaching methodology would be Istituto Marangoni's unique selling point. While several fashion companies from Europe came to the institute's campus, he said several students were interested in setting up their own ventures. The institute has offered ^1 million worth of scholarships and is looking at similar schemes for the design school, too.
"Studies show in the next five years, the fashion industry in India would record average 15 per cent growth. Corporations have understood this potential well and, hence, the spurt in the number of institutes," said an education consultant with a global consulting firm.
After France-based Lisaa School of Design, which opened a centre in India two years ago, the latest entrant in the segment is Italy-based Istituto Marangoni, which set up an office in Mumbai, the first in India, last week. The institute's liaison office would help Indian student secure admissions to its campuses in Milan, London, Shanghai and Paris, and forge partnerships in fashion and design with the entities concerned in India.
Another recent entrant was film-maker Subhash Ghai-promoted Whistling Woods International, which set up a fashion school in partnership with fashion designer Neeta Lulla. The school, Whistling Woods-Neeta Lulla School of Fashion, would commence classes next month in Mumbai. The school, of which Lulla would be the dean, would offer a one-year diploma in fashion design for Rs 5 lakh and a two-year advanced diploma for Rs 8.36 lakh.
These schools, in addition to the existing National Institute of Fashion Technology (NIFT) (which has 15 centres), National Institute of Design (three centres) and Pearl Academy of Fashion, would cater to the growing demands of India's fashion industry. According to estimates, the Indian design and fashion industry is worth Rs 20,000 crore. Of this, branded wear accounts for about a fifth. Over and above this, there are segments such as footwear design, product design and accessories design, which are yet to be fully tapped.
Dario Cattaneo, group sales director at Istituto Marangoni, said, "We are looking to expand our business outside Europe. We have seen a 20 per cent growth year-on-year in the number of Indian students coming to our campus."
Lisaa School of Design provides an exchange programme and an option for students to complete their final course year or the final project in France. "The art and design scene in Europe, especially Paris, is more culturally and deeply entrenched. We can't separate Lisaa from the essence of French art and design, which is exactly the flavour we wish for our Indian students to experience," said Sarabjit Singh, chief executive of Lisaa School of Design, India.
Lisaa France, which has been around for about 30 years, has campuses in Paris, Nantes, Rennes and Strasbourg.
The school, which began operations in India with four students, now has 100 students across many of its programmes. In terms of placements, it partners about 200 brands, firms and design houses, including Eurodisney, Alstom, Habitat, Ikea, BNP Paribas, Louis Vuitton Moet Hannessy, Hermes Paris, Prada, Alcatel, Saatchi & Saatchi and Christian Dior.
Growing fashion awareness among Indians, good placements and the ease of launching one's own label in fashion designing makes this segment exciting and popular. Yashika Rama (name changed), who graduated from NIFT-Delhi two years ago, has set up her own boutique in South Delhi. The boutique records an annual turnover of Rs 6 crore.
"These days, being fashion-conscious means being aware. I have clients as young as 14 who know what fashion is all about. Growing awareness means more business for fashion designers," said Rama. She aims to double her turnover in the 18-24 months.
As many students graduating from design schools join companies that have design divisions, placements aren't an issue. While the salary packages varies, the list of companies keeps increasing, institutes say. For instance, at Pearl Academy in Delhi, while the count of recruiters was about 70 last year, about 100 companies came to the campus this year. At NIFT, Trident, a first-time recruiter, offered salaries of Rs 15 lakh a year to master's degree holders and Rs 9 lakh a year to bachelor's students, in the first round of placements. New firms visiting the campus included Adidas, Samsung, Hennes & Mauritz and Brand Marketing India.
The average salary for an entry-level position for a fashion technology or design student ranges from Rs 3 lakh to Rs 6 lakh, depending on the size of the firm. If a student manages to secure a job at a design company run by celebrity designers such as Satya Paul, Ritu Kumar and Tarun Tahiliani, the starting salary is 20-30 per cent higher, experts say. An average fashion design course costs between Rs 5 lakh and Rs 20 lakh, depending on whether it is a national or an international institution.
Cattaneo says while the number of players in this segment is increasing, a better location and teaching methodology would be Istituto Marangoni's unique selling point. While several fashion companies from Europe came to the institute's campus, he said several students were interested in setting up their own ventures. The institute has offered ^1 million worth of scholarships and is looking at similar schemes for the design school, too.
"Studies show in the next five years, the fashion industry in India would record average 15 per cent growth. Corporations have understood this potential well and, hence, the spurt in the number of institutes," said an education consultant with a global consulting firm.
Videocon Mobile Service to invest Rs 800 crore in Gujarat
Ahmedabad: Telecom service provider Videocon Mobile Services will invest Rs 800 crore in Gujarat for opening over 500 towers and 150 exclusive outlets in the current fiscal. The company is looking at regaining its lost ground after it lost the 2G licence. It achieved a five fold increase in Mobile Number Portability in last three months, claimed the official.
"We have 4,096 towers in the state and will add another 500 in the current fiscal. Another 1,000 will be added in the next fiscal," company CEO Arvind Bali told media persons in the city. The company already added 1,291 towers in June 2013. It also plans to increase its exclusive stores from 42 to 200 in Gujarat. It has decided to open 500 dedicated stores in the country by March 2014. It has already invested Rs 400 crore in Gujarat.
The company registered the second highest number of new subscribers in May and June in Gujarat, bringing its total subscriber base in the state to 8.5 lakh. "About 20- 25% of new subscribers were migrants from other service providers who have availed of Mobile Number Portability (MNP) facility. This was a five-times increase in MNP subscribers in the last three months. Within 6 months of comeback we have added second highest net subscriber additions in the state for last 2 consecutive months," he said.
Videocon is now focusing of increasing the consumption of data by its consumers. It claims that its GPRS service is one of the major reasons for growing its subscriber base in the state.
"We have 4,096 towers in the state and will add another 500 in the current fiscal. Another 1,000 will be added in the next fiscal," company CEO Arvind Bali told media persons in the city. The company already added 1,291 towers in June 2013. It also plans to increase its exclusive stores from 42 to 200 in Gujarat. It has decided to open 500 dedicated stores in the country by March 2014. It has already invested Rs 400 crore in Gujarat.
The company registered the second highest number of new subscribers in May and June in Gujarat, bringing its total subscriber base in the state to 8.5 lakh. "About 20- 25% of new subscribers were migrants from other service providers who have availed of Mobile Number Portability (MNP) facility. This was a five-times increase in MNP subscribers in the last three months. Within 6 months of comeback we have added second highest net subscriber additions in the state for last 2 consecutive months," he said.
Videocon is now focusing of increasing the consumption of data by its consumers. It claims that its GPRS service is one of the major reasons for growing its subscriber base in the state.
India’s longest bridge to come up in North-East by 2016
New Delhi: India’s longest bridge is being planned across the Brahmaputra at Bogibeel in Assam. The 4.94 km rail-cum-road bridge, expected to be a lifeline for the Northeastern states, is scheduled to be completed in 2016.
The bridge is a product of the 1985 Assam Accord and is being implemented by the North East Frontier Railway. The bridge will provide connectivity to upper Assam and Arunachal Pradesh.
The rail link would connect the two existing railway networks running along south and north banks of the river, according to the Railway officials. The rail link will begin from Chaulkhowa and Moranhat stations at south bank and joins in between Sisibargaon and Siripani stations of Rangiya-Murkongselek section in north bank.
The travel time is expected to be reduced to a few minutes, from the current one-and-a-half hour, to cross the river once the bridge is inaugurated; besides the movement of goods will also be possible on a larger scale.
The bridge is a product of the 1985 Assam Accord and is being implemented by the North East Frontier Railway. The bridge will provide connectivity to upper Assam and Arunachal Pradesh.
The rail link would connect the two existing railway networks running along south and north banks of the river, according to the Railway officials. The rail link will begin from Chaulkhowa and Moranhat stations at south bank and joins in between Sisibargaon and Siripani stations of Rangiya-Murkongselek section in north bank.
The travel time is expected to be reduced to a few minutes, from the current one-and-a-half hour, to cross the river once the bridge is inaugurated; besides the movement of goods will also be possible on a larger scale.
Railways expects Rs 1 lakh cr investment in PPP projects
Kolkata: The Indian Railways expects Rs 1 lakh crore investment in PPP projects in the 12th Plan period (2012-17), said Manoj Singh, Advisor-Transport, Planning Commission of India, on Wednesday.
“During the 11th Plan period, the Railways received a mere Rs 3,000 crore investment through public-private partnership route. We expect PPP investments in the current plan Period to be worth Rs 1 lakh crore," Singh said while addressing a CII seminar on logistics here.
The Government has chalked out six unique models to relax the norms to attract more PPP investments.
Singh added "underfunding" has been a major challenge in expanding rail connectivity.
“During the 11th Plan period, the Railways received a mere Rs 3,000 crore investment through public-private partnership route. We expect PPP investments in the current plan Period to be worth Rs 1 lakh crore," Singh said while addressing a CII seminar on logistics here.
The Government has chalked out six unique models to relax the norms to attract more PPP investments.
Singh added "underfunding" has been a major challenge in expanding rail connectivity.
India, Belarus Sign Protocol to Boost Trade Ties
New Delhi: The 6th Session of the India-Belarus Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held today here. The session was co-chaired from the Indian Side by Dr. E.M. Sudarsana Natchiappan, Minister of State for Commerce and Industry and Mr. Dmitry S. Katerinich, Minister of Industry of the Republic of Belarus.
Highlighting that the meeting is yet another step in the direction of strengthening trade and economic relations between the two countries, Dr. Natchiappan said that “sectors like pharmaceutical, fertilizers, information technology and research & development offer tremendous potential for cooperation between India and Belarus.” Elaborating on the fertilizer sector, the Indian Minister conveyed that “India is looking for long-term contracts for supply of potash to meet its growing requirements.” He also added that Indian companies can also look for “opportunities for setting up joint ventures in Belarus for production of potash-based fertilizers.” The Belarusian side recommended India to determine an Indian counterpart deputed to negotiate on the long-term cooperation agreement, take decisions and signing of the agreement for the full volume of the deliveries. The JSC “Belaruain Potash Company” and an Indian counterpart to be nominated by the Government of India should finalise the volumes, terms and conditions of the long-term cooperation agreement for MOP deliveries to India within specified time period.
The two Ministers also signed a Protocol after the Meeting. It was decided by both the sides that necessary steps will be taken to sign the Memorandum of Understanding between the Ministry of Textiles, India and the Belarusian State Concern for Manufacturing and Marketing of Light Industry Goods (concern “Bellegprom”) on Cooperation in the Field of Textiles, Clothing and Fashion Industries.
The Republic of Belarus also asked India to recognise Belarus as a market economy country. The Indian side responded that the matter is under active correspondence between the sides. India is considering the issue of grant of market economy status to Belarus within the framework of India’s Antidumping Rules. The Indian side stated that the matter is being examined positively and the official decision would be taken before the next session of the Commission.
The Belarusian side flagged the issue related to the introduction and long duration of action of antidumping duties on a number of products of the petrochemical complex: tire cord fabric manufactured by JSC “Grodno Azot” and acrylics fibers manufactured by the plant “Polymir” of the OJSC “Naftan”. Belarus advocated for revocation of the antidumping duties on these goods and expressed the intension to maintain the export of the products to India, mostly of interest to Indian consumers.
Both the sides also agreed to create a Certification Centre of Belarusian companies and professionals in the field of software at the earliest possible time. The Belarusian Side will provide a draft concept of the Certification Centre of Belarusian companies and professionals in the field of software to initiate negotiations with the Indian Side.
The Belarusian delegation proposed to hold the 9th meeting of the Business Council “India-Belarus” in 2013 to promote the collaboration of business representatives, as well as agreed to define the dates of the National Exhibition (exposition) of the Republic of India during 2013-2014 in Minsk.
Highlighting that the meeting is yet another step in the direction of strengthening trade and economic relations between the two countries, Dr. Natchiappan said that “sectors like pharmaceutical, fertilizers, information technology and research & development offer tremendous potential for cooperation between India and Belarus.” Elaborating on the fertilizer sector, the Indian Minister conveyed that “India is looking for long-term contracts for supply of potash to meet its growing requirements.” He also added that Indian companies can also look for “opportunities for setting up joint ventures in Belarus for production of potash-based fertilizers.” The Belarusian side recommended India to determine an Indian counterpart deputed to negotiate on the long-term cooperation agreement, take decisions and signing of the agreement for the full volume of the deliveries. The JSC “Belaruain Potash Company” and an Indian counterpart to be nominated by the Government of India should finalise the volumes, terms and conditions of the long-term cooperation agreement for MOP deliveries to India within specified time period.
The two Ministers also signed a Protocol after the Meeting. It was decided by both the sides that necessary steps will be taken to sign the Memorandum of Understanding between the Ministry of Textiles, India and the Belarusian State Concern for Manufacturing and Marketing of Light Industry Goods (concern “Bellegprom”) on Cooperation in the Field of Textiles, Clothing and Fashion Industries.
The Republic of Belarus also asked India to recognise Belarus as a market economy country. The Indian side responded that the matter is under active correspondence between the sides. India is considering the issue of grant of market economy status to Belarus within the framework of India’s Antidumping Rules. The Indian side stated that the matter is being examined positively and the official decision would be taken before the next session of the Commission.
The Belarusian side flagged the issue related to the introduction and long duration of action of antidumping duties on a number of products of the petrochemical complex: tire cord fabric manufactured by JSC “Grodno Azot” and acrylics fibers manufactured by the plant “Polymir” of the OJSC “Naftan”. Belarus advocated for revocation of the antidumping duties on these goods and expressed the intension to maintain the export of the products to India, mostly of interest to Indian consumers.
Both the sides also agreed to create a Certification Centre of Belarusian companies and professionals in the field of software at the earliest possible time. The Belarusian Side will provide a draft concept of the Certification Centre of Belarusian companies and professionals in the field of software to initiate negotiations with the Indian Side.
The Belarusian delegation proposed to hold the 9th meeting of the Business Council “India-Belarus” in 2013 to promote the collaboration of business representatives, as well as agreed to define the dates of the National Exhibition (exposition) of the Republic of India during 2013-2014 in Minsk.
ArcelorMittal gets 2,000 acres to set up steel plant in Bellary
Bangalore: The Karnataka government has handed over 2,000 acres at Kuditini in the Bellary district to global steel giant ArcelorMittal to set up a six-million tonne-per-annum (mtpa) plant. The company had signed a memorandum of understanding (MoU) with the state government to set up the plant at an investment of Rs 30,000 crore.
Chief Minister Siddaramaiah said at a meeting of global investors in June 2010, the government had approved the company’s proposal for 4,800 acres to set up a steel plant. So far, the Karnataka Industrial Areas Development Board has acquired 2,000 acres and handed over the land to the company.
Replying to a question from Shivalingegowda K M in the legislative assembly on Tuesday, the chief minister clarified the proposal to acquire land for South Korean steel major Posco was dropped, following resistance from farmers and religious heads in Gadag district.
In 2010, Posco had signed an MoU with the state government to set up a six-mtpa steel plant at a cost of Rs 32,300 crore. Recently, the company announced it had withdrawn its proposal, following delay in land acquisition. Subsequently, ArcelorMittal also announced the withdrawal of its proposal to set up a steel plant in Odisha.
Siddaramaiah said so far, the government had handed over 1,274.53 acres to industries that had signed MoUs at the investors’ meeting in 2010 (excluding ArcelorMittal) and 794.45 acres to those that had signed such pacts at a similar meeting in 2012. Of the companies that had signed MoUs in 2010, 22 had commenced manufacturing, while nine companies that had signed pacts with the state government in 2012 had started manufacturing, he added.
He said so far, Rs 18,061 crore committed in 2010 and Rs 3,363 crore committed in 2012 had been invested in the state. Major companies to have invested in the state are Mangalore Refinery and Petrochemicals (Rs 15,798 crore), Honda Motorcycle and Scooter India (Rs 1,350 crore), J K Tyre & Industries (Rs 476 crore), Jindal Aluminium (Rs 370 crore), Starragheckert Machine Tools (Rs 215 crore), Hindustan Coca-Cola Beverages (Rs 250 crore), Aradya Steel (Rs 427 crore) and Shahi Exports (Rs 533 crore).
Chief Minister Siddaramaiah said at a meeting of global investors in June 2010, the government had approved the company’s proposal for 4,800 acres to set up a steel plant. So far, the Karnataka Industrial Areas Development Board has acquired 2,000 acres and handed over the land to the company.
Replying to a question from Shivalingegowda K M in the legislative assembly on Tuesday, the chief minister clarified the proposal to acquire land for South Korean steel major Posco was dropped, following resistance from farmers and religious heads in Gadag district.
In 2010, Posco had signed an MoU with the state government to set up a six-mtpa steel plant at a cost of Rs 32,300 crore. Recently, the company announced it had withdrawn its proposal, following delay in land acquisition. Subsequently, ArcelorMittal also announced the withdrawal of its proposal to set up a steel plant in Odisha.
Siddaramaiah said so far, the government had handed over 1,274.53 acres to industries that had signed MoUs at the investors’ meeting in 2010 (excluding ArcelorMittal) and 794.45 acres to those that had signed such pacts at a similar meeting in 2012. Of the companies that had signed MoUs in 2010, 22 had commenced manufacturing, while nine companies that had signed pacts with the state government in 2012 had started manufacturing, he added.
He said so far, Rs 18,061 crore committed in 2010 and Rs 3,363 crore committed in 2012 had been invested in the state. Major companies to have invested in the state are Mangalore Refinery and Petrochemicals (Rs 15,798 crore), Honda Motorcycle and Scooter India (Rs 1,350 crore), J K Tyre & Industries (Rs 476 crore), Jindal Aluminium (Rs 370 crore), Starragheckert Machine Tools (Rs 215 crore), Hindustan Coca-Cola Beverages (Rs 250 crore), Aradya Steel (Rs 427 crore) and Shahi Exports (Rs 533 crore).
Ford's project B562 to make India a compact car global production base
Mumbai: US carmaker Ford Motor Company is making India as a compact car global production base once its Sanand plant in Gujarat comes on stream in 2014, under a project codenamed B562 that may spawn three different compact cars from the same platform.
ET learns the move is part of Ford's larger global production restructuring plan which places greater responsibility on India versus its other base in Europe and across the world. Four people close to the development told ET, a project codenamed B562 is currently under development.
A small hatchback, a sub-4 metre sedan and a midsize compact sedan are being considered to be rolled out over the next two three years.
The development work of hatchback and mid-size compact sedan is gathering speed, however sub-4 metre sedan is still at a consideration stage, said people in the know of the development.
Underlining the growing significance of India as a base Alan Mulally, Global CEO of Ford Motor Company in a recent media interaction in India said, "The demand is dramatically down for cars in Europe, like it was in United States. So we are moving production, consolidating our facilities, but at the same time, we are accelerating the new vehicles. Customers want value, so it is going to take us a couple of years to finish that restructuring, we are doing the right thing for the customers and right thing for Ford,"
The hatchback may be placed alongside the existing Figo, the sub-4 metre sedan if given a go ahead will take on Maruti SuzukiBSE -3.00 % Dzire and Honda Amaze and the mid-size compact sedan will replace Fiesta classic. Globally the hatchback is expected to replace the Ka small car, people close to the company told ET.
"The company plans to produce over 2,00,000 cars on B562 platform by 2015-16 and over 30-50% is planned to be exported to the overseas markets over a period of time. The company tested the overseas markets with Figo, they now plan to aggressively expand exports with the EcoSport and with the B562 cars, the company intends to make the best use of its competitive production base in India," said one of the four people cited above on condition on anonymity.
When contacted, Ford India's spokesperson said, "We would not speculate about our future product strategy and business operations. Ford India's product-led transformation continues with the introduction of the EcoSport and currently we have a laser sharp focus to deliver it for our customers."
While the company terms EcoSport as a game changer, people involved with the company believe, the B562 is a even bigger deal. "The cars are being developed with an aim of garnering profits quicker than some of the earlier projects. In terms of volumes, the platform will deliver largest volumes for Ford India going ahead and is expected to come with a localisation level of over 90%."
According to V G Ramakrishnan, MD, Frost & Sullivan, South Asia, a big exports push helps Ford in not only getting the pricing right for the domestic market like it did with EcoSport, but it helps the company democratize some of the high end technology at affordable price.
ET learns the move is part of Ford's larger global production restructuring plan which places greater responsibility on India versus its other base in Europe and across the world. Four people close to the development told ET, a project codenamed B562 is currently under development.
A small hatchback, a sub-4 metre sedan and a midsize compact sedan are being considered to be rolled out over the next two three years.
The development work of hatchback and mid-size compact sedan is gathering speed, however sub-4 metre sedan is still at a consideration stage, said people in the know of the development.
Underlining the growing significance of India as a base Alan Mulally, Global CEO of Ford Motor Company in a recent media interaction in India said, "The demand is dramatically down for cars in Europe, like it was in United States. So we are moving production, consolidating our facilities, but at the same time, we are accelerating the new vehicles. Customers want value, so it is going to take us a couple of years to finish that restructuring, we are doing the right thing for the customers and right thing for Ford,"
The hatchback may be placed alongside the existing Figo, the sub-4 metre sedan if given a go ahead will take on Maruti SuzukiBSE -3.00 % Dzire and Honda Amaze and the mid-size compact sedan will replace Fiesta classic. Globally the hatchback is expected to replace the Ka small car, people close to the company told ET.
"The company plans to produce over 2,00,000 cars on B562 platform by 2015-16 and over 30-50% is planned to be exported to the overseas markets over a period of time. The company tested the overseas markets with Figo, they now plan to aggressively expand exports with the EcoSport and with the B562 cars, the company intends to make the best use of its competitive production base in India," said one of the four people cited above on condition on anonymity.
When contacted, Ford India's spokesperson said, "We would not speculate about our future product strategy and business operations. Ford India's product-led transformation continues with the introduction of the EcoSport and currently we have a laser sharp focus to deliver it for our customers."
While the company terms EcoSport as a game changer, people involved with the company believe, the B562 is a even bigger deal. "The cars are being developed with an aim of garnering profits quicker than some of the earlier projects. In terms of volumes, the platform will deliver largest volumes for Ford India going ahead and is expected to come with a localisation level of over 90%."
According to V G Ramakrishnan, MD, Frost & Sullivan, South Asia, a big exports push helps Ford in not only getting the pricing right for the domestic market like it did with EcoSport, but it helps the company democratize some of the high end technology at affordable price.
ONGC, partners to invest Rs 1,100 cr in Cambay block
Mumbai: State-run Oil and Natural Gas Corp (ONGC) and its partners — Tata Petrodyne and Hindustan Oil Exploration Co — will invest Rs 1,100 crore in developing an offshore block in the Gulf of Cambay, off the west coast of India.
The area is an extension of the onshore Cambay basin in Gujarat where major oil and gas fields like Gandhar are located.
“The operating committee (of the block) met last week and agreed for the development plan. We are now awaiting a meeting of the managing committee. Once an approval is obtained, we will flag off work on the block,” said a senior official from Tata Petrodyne.
The official, who did not want to be named, added the partners would bring in Rs 1,100 crore in proportion to their participating interest in the the the CB-OS/1 block.
ONGC, with a 55.26 per cent stake, is the operator of the block. It bought the stake from BG Exploration and Production (India) Ltd in January 2005. While Tata Petrodyne holds a participating interest of 6.70 per cent, Hindustan Oil holds 38.04 per cent.
According to Tata Petrodyne's website, the minimum work obligation of drilling seven wells in the phase I of block exploration was completed in 2002. The consortium decided not to proceed to the phase II of exploration and retained only three discovery areas — A, D and Harinagar structures.
Feasibility studies conducted to develop the ‘A’ and ‘D’ structures indicated developing the ‘A’ structure was commercially viable, while the ‘D’ structure was not so viable. Accordingly, the operating committee of the block approved the commerciality of the Gulf ‘A’ discovery with initial oil reserves of 48 million barrels, of which 11 million barrels are recoverable as of now.
Production from this block is expected to commence in 2015. "The operating committee of the block CB-OS/1 has approved on July 17, 2013, the revised plan of development submitted by the operator, entailing offshore development scheme for Gulf A discovery,” said Hindustan Oil in its June quarter report. ONGC is also pursuing with the government of India for approval of commercial discovery report for Harinagar area, it added.
Hindustan Oil posted a net loss at Rs 18.3 crore in the first quarter against a profit of Rs 1.48 crore a year ago. It had posted a loss of Rs 28.33 crore in the previous quarter.
The area is an extension of the onshore Cambay basin in Gujarat where major oil and gas fields like Gandhar are located.
“The operating committee (of the block) met last week and agreed for the development plan. We are now awaiting a meeting of the managing committee. Once an approval is obtained, we will flag off work on the block,” said a senior official from Tata Petrodyne.
The official, who did not want to be named, added the partners would bring in Rs 1,100 crore in proportion to their participating interest in the the the CB-OS/1 block.
ONGC, with a 55.26 per cent stake, is the operator of the block. It bought the stake from BG Exploration and Production (India) Ltd in January 2005. While Tata Petrodyne holds a participating interest of 6.70 per cent, Hindustan Oil holds 38.04 per cent.
According to Tata Petrodyne's website, the minimum work obligation of drilling seven wells in the phase I of block exploration was completed in 2002. The consortium decided not to proceed to the phase II of exploration and retained only three discovery areas — A, D and Harinagar structures.
Feasibility studies conducted to develop the ‘A’ and ‘D’ structures indicated developing the ‘A’ structure was commercially viable, while the ‘D’ structure was not so viable. Accordingly, the operating committee of the block approved the commerciality of the Gulf ‘A’ discovery with initial oil reserves of 48 million barrels, of which 11 million barrels are recoverable as of now.
Production from this block is expected to commence in 2015. "The operating committee of the block CB-OS/1 has approved on July 17, 2013, the revised plan of development submitted by the operator, entailing offshore development scheme for Gulf A discovery,” said Hindustan Oil in its June quarter report. ONGC is also pursuing with the government of India for approval of commercial discovery report for Harinagar area, it added.
Hindustan Oil posted a net loss at Rs 18.3 crore in the first quarter against a profit of Rs 1.48 crore a year ago. It had posted a loss of Rs 28.33 crore in the previous quarter.
Indian auto components industry may invest around Rs 70 billion over the next three years: ICRA
New Delhi: The Indian auto components industry may invest around Rs 70 billion over the next three years on new projects, according to a study by ICRA.
Automobile manufacturers such as Hero MotoCorp, Maruti Suzuki and Ford, plans to establish greenfield facilities in Gujarat, encouraging auto component makers to invest around these facilities. “The above greenfield investments may entail total investments of Rs 7,000 crore to be incurred by auto component manufacturers over the next three years,” highlighted ICRA.
“Over the near term, the trepidation of auto part makers arising from dull automobile demand is likely to remain...the profitability of auto component manufacturers may be hit harder due to their smaller scale of operations and limited operational and financial flexibility,” as per the study.
However, over the medium term factors such as growing thrust on localisation and expanding business in new geographies should allow the industry to grow at a relatively faster pace than the auto OEM segment, the study added.
Automobile manufacturers such as Hero MotoCorp, Maruti Suzuki and Ford, plans to establish greenfield facilities in Gujarat, encouraging auto component makers to invest around these facilities. “The above greenfield investments may entail total investments of Rs 7,000 crore to be incurred by auto component manufacturers over the next three years,” highlighted ICRA.
“Over the near term, the trepidation of auto part makers arising from dull automobile demand is likely to remain...the profitability of auto component manufacturers may be hit harder due to their smaller scale of operations and limited operational and financial flexibility,” as per the study.
However, over the medium term factors such as growing thrust on localisation and expanding business in new geographies should allow the industry to grow at a relatively faster pace than the auto OEM segment, the study added.
Govt to fund start-ups in electronics space
New Delhi: The Government will soon unveil guidelines for financially supporting start-ups in the field of electronics. It may chip in with 15-25 per cent of the total investment for such projects through fund managers including banks or any large IT company.
“This will be the first time in the country when we will have a system by which the Government can effectively stimulate the private sector in R&D work, because we have one of the lowest intensities of R&D relative to the GDP (less than 1 per cent),” a senior official at the Department of Electronics and Information Technology (DeitY) told Business Line.
Mission mode
Once the guidelines are finalised, the Government will also fix its return on investment (at around 5 per cent). A high-level committee under the chairmanship of R. Chidambaram, Principal Scientific Adviser to the Government, is working on preparing the guidelines.
This will be part of the National Electronics Mission under the National Policy on Electronics 2012, and the investments will be routed through the Government’s ‘Electronic Development Fund’ scheme, which aims to invest $2 billion (around Rs 12,000 crore) by 2020, the official said.
“We expect additional mobilisation of around Rs 30,000 crore — to be raised from the industry by 2020. The industry is nascent right now, so we expect it to start slowly and invest around Rs 50 crore or Rs 100 crore to start with,” he said.
There are many small companies in India which are on the verge of shutting down . The proposed initiative will help such companies survive , he said.
The official said the Government is also open to working with Nasscom to support the start-ups.
He said even though institutions such as the Centre for Development of Advanced Computing , and the IITs are doing their bit it may not be sufficient.
“We need to plant thousands of trees; out of which only a few may survive, but one or two that do survive will give sufficient returns; and that is what venture capitalists do,” he said.
Under the NPE, the Government is hoping the electronics sector will achieve a turnover of around $400 billion by 2020. This involves investment of around $100 billion. It will also help employ around 28 million people by 2020.
The policy includes achieving a turnover of $55 billion for the chip design and embedded software industry, and $80 billion of exports in the sector. Over 200 electronic manufacturing clusters are also proposed to be set up.
“This will be the first time in the country when we will have a system by which the Government can effectively stimulate the private sector in R&D work, because we have one of the lowest intensities of R&D relative to the GDP (less than 1 per cent),” a senior official at the Department of Electronics and Information Technology (DeitY) told Business Line.
Mission mode
Once the guidelines are finalised, the Government will also fix its return on investment (at around 5 per cent). A high-level committee under the chairmanship of R. Chidambaram, Principal Scientific Adviser to the Government, is working on preparing the guidelines.
This will be part of the National Electronics Mission under the National Policy on Electronics 2012, and the investments will be routed through the Government’s ‘Electronic Development Fund’ scheme, which aims to invest $2 billion (around Rs 12,000 crore) by 2020, the official said.
“We expect additional mobilisation of around Rs 30,000 crore — to be raised from the industry by 2020. The industry is nascent right now, so we expect it to start slowly and invest around Rs 50 crore or Rs 100 crore to start with,” he said.
There are many small companies in India which are on the verge of shutting down . The proposed initiative will help such companies survive , he said.
The official said the Government is also open to working with Nasscom to support the start-ups.
He said even though institutions such as the Centre for Development of Advanced Computing , and the IITs are doing their bit it may not be sufficient.
“We need to plant thousands of trees; out of which only a few may survive, but one or two that do survive will give sufficient returns; and that is what venture capitalists do,” he said.
Under the NPE, the Government is hoping the electronics sector will achieve a turnover of around $400 billion by 2020. This involves investment of around $100 billion. It will also help employ around 28 million people by 2020.
The policy includes achieving a turnover of $55 billion for the chip design and embedded software industry, and $80 billion of exports in the sector. Over 200 electronic manufacturing clusters are also proposed to be set up.
Tuesday, July 23, 2013
IT's back: Outsourcing volumes of Indian firms on the upswing
Bangalore: Outsourcing volumes of Indian IT companies in the first quarter have gone up, indicating early signs of bullishness in the $100-billion sector.
This is the first time in the last eight quarters that the volume of outsourcing work has gone up for large and medium-size companies. For example, TCS reported that volumes went up by 6.1 per cent, its largest in the past seven quarters.
Similarly, Infosys, which has had trouble in maintaining volume growth over the past quarters, surprised market watchers by posting a 4.1 per cent rise in its volumes. Cognizant, Wipro and HCL Tech are yet to announce June ending quarter results.
Industry watchers opine that these positive results bode well for the sector but added that regulatory changes such as US Immigration Bill in its current form can have a negative effect. Earlier this month, India Ratings and Research maintained its stable outlook on the Indian IT services industry for the second half of 2013.
Mid-size firms
However, analysts maintain that sustaining this growth momentum and impact of wage hikes would determine whether companies can continue this run. “While volume growth is positive, the key thing to watch out is whether this momentum can be sustained consistently,” said A.K. Prabhakar, Senior Vice- President-Equity Research at Anand Rathi.
Mid-size companies also saw decent volume momentum. iGATE reported 4 per cent growth and MindTree posted 4.1 per cent growth. Hexaware, another mid-size company, saw muted 1.5 per cent increase in its volumes when compared to the previous quarter but said that some of the deals that it is negotiating will spill into the next couple of quarters.
The June quarter also saw management bullish on the deal pipeline across most IT companies and some stability on the pricing it charges to its clients. TCS CEO Chandrasekaran pointed out that the company is seeing a pickup in discretionary IT spending, which comes with better margins.
Mid-size companies also indicated a better deal pipeline and some like Hexaware have indicated an upward revenue guidance for the next quarter, said Rumit Dugar, IT analyst with Religare Institutional Research.
This is the first time in the last eight quarters that the volume of outsourcing work has gone up for large and medium-size companies. For example, TCS reported that volumes went up by 6.1 per cent, its largest in the past seven quarters.
Similarly, Infosys, which has had trouble in maintaining volume growth over the past quarters, surprised market watchers by posting a 4.1 per cent rise in its volumes. Cognizant, Wipro and HCL Tech are yet to announce June ending quarter results.
Industry watchers opine that these positive results bode well for the sector but added that regulatory changes such as US Immigration Bill in its current form can have a negative effect. Earlier this month, India Ratings and Research maintained its stable outlook on the Indian IT services industry for the second half of 2013.
Mid-size firms
However, analysts maintain that sustaining this growth momentum and impact of wage hikes would determine whether companies can continue this run. “While volume growth is positive, the key thing to watch out is whether this momentum can be sustained consistently,” said A.K. Prabhakar, Senior Vice- President-Equity Research at Anand Rathi.
Mid-size companies also saw decent volume momentum. iGATE reported 4 per cent growth and MindTree posted 4.1 per cent growth. Hexaware, another mid-size company, saw muted 1.5 per cent increase in its volumes when compared to the previous quarter but said that some of the deals that it is negotiating will spill into the next couple of quarters.
The June quarter also saw management bullish on the deal pipeline across most IT companies and some stability on the pricing it charges to its clients. TCS CEO Chandrasekaran pointed out that the company is seeing a pickup in discretionary IT spending, which comes with better margins.
Mid-size companies also indicated a better deal pipeline and some like Hexaware have indicated an upward revenue guidance for the next quarter, said Rumit Dugar, IT analyst with Religare Institutional Research.
Corona ties up with Spanish company to sell ORS gel
Ahmedabad: Corona Remedies Pvt Ltd on Monday announced a tie up with Spain’s Medical Diagnostics Aragon (MDA) for the pan-India launch of ‘Rehidrata-T,’ an oral rehydration salt (ORS) formulation in gel form.
The Ahmedabad-based company, whose turnover is expected to increase from Rs 100 crore in 2012-13 to Rs 150 crore in the current fiscal, will import Rehidrata-T for exclusive marketing in India where the ORS market size is about Rs 2,000 crore per annum with a CAGR of 10 per cent. “We are targeting a 10 per cent of this market in the first year,” said Nirav K. Mehta, Marketing Director, Corona Remedies.
Corona, mainly a drug marketing company, which signed a 10-year exclusivity agreement with MDS , is banking on Rehidrata-T’s hydrogel technology recommended by the WHO. The shelf-life of this product is 24 months. The ORS sachet will be available in two palatable tastes with a price tag of Rs 35 each. MDS has a 25 per cent market share of Rehidrata-T in Spain, he said, adding the product is already available in over 30 countries.
Jose Ignacio, CEO of MDA, said Rehidrata-T is a rehydration product with an edge over conventional solid ORS or tetra packs available. Its gel format permits it to be eaten in frozen form also, making it easily consumable by children and patients as a dessert or ice cream. This makes the intake of ORS easier and safer for even chemotherapy radiation patients with mouth sores and is also suitable for certain diabetics.
Corona is also looking to address the bed-wetting problem of children and the elderly by marketing another product imported from MDA.
The company, which also has a manufacturing plant at Solan, Himachal Pradesh, plans to set up another plant at Changodar near Ahmedabad where it has acquired land.
The Ahmedabad-based company, whose turnover is expected to increase from Rs 100 crore in 2012-13 to Rs 150 crore in the current fiscal, will import Rehidrata-T for exclusive marketing in India where the ORS market size is about Rs 2,000 crore per annum with a CAGR of 10 per cent. “We are targeting a 10 per cent of this market in the first year,” said Nirav K. Mehta, Marketing Director, Corona Remedies.
Corona, mainly a drug marketing company, which signed a 10-year exclusivity agreement with MDS , is banking on Rehidrata-T’s hydrogel technology recommended by the WHO. The shelf-life of this product is 24 months. The ORS sachet will be available in two palatable tastes with a price tag of Rs 35 each. MDS has a 25 per cent market share of Rehidrata-T in Spain, he said, adding the product is already available in over 30 countries.
Jose Ignacio, CEO of MDA, said Rehidrata-T is a rehydration product with an edge over conventional solid ORS or tetra packs available. Its gel format permits it to be eaten in frozen form also, making it easily consumable by children and patients as a dessert or ice cream. This makes the intake of ORS easier and safer for even chemotherapy radiation patients with mouth sores and is also suitable for certain diabetics.
Corona is also looking to address the bed-wetting problem of children and the elderly by marketing another product imported from MDA.
The company, which also has a manufacturing plant at Solan, Himachal Pradesh, plans to set up another plant at Changodar near Ahmedabad where it has acquired land.
Italian co Streparava buys out Indian joint venture partner Sansera Engg
Mumbai: Italian auto component maker Streparava Holding SPA said it has bought out its Indian partner Sansera Engineering from the joint venture that makes engine parts. The financials of the deal were not disclosed.
Streparava earlier held 49 per cent equity in the company and the remaining 51 per cent was held by Sansera Engineering Pvt Ltd.
Sansera Engineering is located in Bangalore and will now be Streparava’s wholly-owned Indian venture. Streparava is an Italian manufacturer of auto components and makes rocker arms, chassis components, bearing cups, valve bridges and other powertrain components for the commercial vehicle industry.
Streparava was founded in 1951 and has been operating in Italy for over 60 years. Apart from Italy, Streparava has a presence in Brazil, Spain and China.
The Indian company Sansera Engineering’s commercial production started in 1987. It supplies products to more than 20 customers in India and globally. Its reported consolidated revenue was about Rs 550 crore for the year ended March 31.
In a statement, a spokesperson of Streparava said, “Streparava is committed to strengthening its presence in India beyond the current range of products being produced in the Bangalore facility, to other areas such as driveline and chassis components.”
Tecnova India, a Delhi-based consulting company, was the advisor to the deal.
Streparava earlier held 49 per cent equity in the company and the remaining 51 per cent was held by Sansera Engineering Pvt Ltd.
Sansera Engineering is located in Bangalore and will now be Streparava’s wholly-owned Indian venture. Streparava is an Italian manufacturer of auto components and makes rocker arms, chassis components, bearing cups, valve bridges and other powertrain components for the commercial vehicle industry.
Streparava was founded in 1951 and has been operating in Italy for over 60 years. Apart from Italy, Streparava has a presence in Brazil, Spain and China.
The Indian company Sansera Engineering’s commercial production started in 1987. It supplies products to more than 20 customers in India and globally. Its reported consolidated revenue was about Rs 550 crore for the year ended March 31.
In a statement, a spokesperson of Streparava said, “Streparava is committed to strengthening its presence in India beyond the current range of products being produced in the Bangalore facility, to other areas such as driveline and chassis components.”
Tecnova India, a Delhi-based consulting company, was the advisor to the deal.
OnMobile completes $17.8-m Livewire deal
Mumbai: Bangalore-based value-added services company OnMobile Global Ltd, which had entered into an agreement to acquire the business assets of Boston-based mobile entertainment firm Livewire Mobile for $17.8 million (around Rs 105 crore), has closed the transaction.
Livewire Mobile’s portfolio of mobile music and gaming solutions and its client base, including Sprint, US Cellular and Cricket, will combine with OnMobile’s American customer base, including AT&T, T-Mobile and Rogers, to establish a footprint at six of the top ten mobile operators in North America.
The new combined entity presents a single source solution for integrated value added services (VAS) that will cater to high value subscriber segments, including youth and upwardly mobile professionals.
With global mobile operators struggling to monetise mobile data beyond core data plans, the going would not be easy for the company, given the aggressive competition in the market.
However, Harry Wang, lead mobile analyst from international market research firm, Parks Associates, said that the mobile VAS market represents an attractive opportunity for operators, who need to find an efficient means to aggregate, package, distribute, and manage content and services in order to create a differentiated user experience.
Onmobile Global Ltd is a B2B digital VAS provider, providing mobile entertainment services for top telecom operators in Asia, Africa and Europe.
Livewire Mobile’s portfolio of mobile music and gaming solutions and its client base, including Sprint, US Cellular and Cricket, will combine with OnMobile’s American customer base, including AT&T, T-Mobile and Rogers, to establish a footprint at six of the top ten mobile operators in North America.
The new combined entity presents a single source solution for integrated value added services (VAS) that will cater to high value subscriber segments, including youth and upwardly mobile professionals.
With global mobile operators struggling to monetise mobile data beyond core data plans, the going would not be easy for the company, given the aggressive competition in the market.
However, Harry Wang, lead mobile analyst from international market research firm, Parks Associates, said that the mobile VAS market represents an attractive opportunity for operators, who need to find an efficient means to aggregate, package, distribute, and manage content and services in order to create a differentiated user experience.
Onmobile Global Ltd is a B2B digital VAS provider, providing mobile entertainment services for top telecom operators in Asia, Africa and Europe.
Foodgrain production estimated at 255.36 MT
Pulses Production Estimated at Record 18.45 MT
4th Advance Estimates Of Foodgrain Production for 2012-13 Released
New Delhi: The Government today released the 4th advance estimates of foodgrain production for 2012-13. As per the latest estimates, India has produced 255.36 million tonnes of foodgrains during 2012-13 compared to 259.29 million tonnes in the previous year.
The production estimates for major crops for 2012-13 are as follows:
Total foodgrains – 255.36 million tonnes
Rice – 104.40 million tonnes
Wheat – 92.46 million tonnes
Coarse Cereals – 40.06 million tonnes
Maize – 22.23 million tonnes
Pulses – 18.45 million tonnes
Tur – 3.07 million tonnes
Urad – 1.90 million tonnes
Moong – 1.20 million tonnes
Gram – 8.88 million tonnes
Oilseeds – 31.01 million tonnes
Soyabean – 14.68 million tonnes
Groundnut – 4.75 million tonnes
Rapeseed & mustard – 7.82 million tonnes
Cotton – 34.00 million bales (of 170 kg each)
Sugarcane – 338.96 million tonnes
MP:SS: BK:CP: fourth advance estimates (22.7.2013)
4th Advance Estimates Of Foodgrain Production for 2012-13 Released
New Delhi: The Government today released the 4th advance estimates of foodgrain production for 2012-13. As per the latest estimates, India has produced 255.36 million tonnes of foodgrains during 2012-13 compared to 259.29 million tonnes in the previous year.
The production estimates for major crops for 2012-13 are as follows:
Total foodgrains – 255.36 million tonnes
Rice – 104.40 million tonnes
Wheat – 92.46 million tonnes
Coarse Cereals – 40.06 million tonnes
Maize – 22.23 million tonnes
Pulses – 18.45 million tonnes
Tur – 3.07 million tonnes
Urad – 1.90 million tonnes
Moong – 1.20 million tonnes
Gram – 8.88 million tonnes
Oilseeds – 31.01 million tonnes
Soyabean – 14.68 million tonnes
Groundnut – 4.75 million tonnes
Rapeseed & mustard – 7.82 million tonnes
Cotton – 34.00 million bales (of 170 kg each)
Sugarcane – 338.96 million tonnes
MP:SS: BK:CP: fourth advance estimates (22.7.2013)
Monday, July 22, 2013
Apollo Hospitals to expand capacity in East
Kolkata: Apollo Hospitals plans to add another 1,500 beds in Eastern and North Eastern India and, Bangladesh in next five years. On the cards are opening of four new hospitals – one each in Kolkata, Patna, Raipur and Guwahati.
The Chennai-based healthcare major has 1,500-bed capacity in the East and North East. This includes a 510-bed super-specialty hospital in Eastern Kolkata.
According to the company, plans are afoot to add 200 beds to the existing hospital in Kolkata and build another hospital in western part of the city. The expansion of the existing capacity will be completed by this year-end. “We expect to double our capacity in the East in the next four to five years. In addition to our existing units, we would like to be present in Patna, Raipur and Guwahati,” Rupali Basu, Chief Executive Officer, Eastern Region, Apollo Hospitals, told Business Line on the sidelines of a CII seminar on scope of venture capital and private equity fund in healthcare, on Saturday.
According to Sanjay K. Randhar, President, IndiaVenture Advisors Pvt Ltd, a Piramal Group company, estimated the cost of setting up super-specialty units at Rs 50 lakh to Rs 1 crore per bed in tier-I cities. The cost would vary between Rs 30 lakh and Rs 50 lakh in the tier-II and tier-III cities.
Currently, Apollo Hospitals has six tele-medicine (through video-conferencing system) centres in the region. Plans are afoot to add another 24 over the next couple of years.
The Chennai-based healthcare major has 1,500-bed capacity in the East and North East. This includes a 510-bed super-specialty hospital in Eastern Kolkata.
According to the company, plans are afoot to add 200 beds to the existing hospital in Kolkata and build another hospital in western part of the city. The expansion of the existing capacity will be completed by this year-end. “We expect to double our capacity in the East in the next four to five years. In addition to our existing units, we would like to be present in Patna, Raipur and Guwahati,” Rupali Basu, Chief Executive Officer, Eastern Region, Apollo Hospitals, told Business Line on the sidelines of a CII seminar on scope of venture capital and private equity fund in healthcare, on Saturday.
According to Sanjay K. Randhar, President, IndiaVenture Advisors Pvt Ltd, a Piramal Group company, estimated the cost of setting up super-specialty units at Rs 50 lakh to Rs 1 crore per bed in tier-I cities. The cost would vary between Rs 30 lakh and Rs 50 lakh in the tier-II and tier-III cities.
Currently, Apollo Hospitals has six tele-medicine (through video-conferencing system) centres in the region. Plans are afoot to add another 24 over the next couple of years.
RIL to invest $5.1 bn in US shale gas biz
Mumbai: Reliance Industries Ltd (RIL) will invest $5.1 billion (Rs 30,290 crore) in the next three years in its US shale gas business, taking the total investment in the business to $10.8 billion.
The Mukesh Ambani-promoted conglomerate acquired shale gas assets in the US in 2010 for $3.45 billion and has invested $5.7 billion in shale gas joint ventures till the June 2013 quarter.
Shale gas is natural gas found trapped within shale formations.
“RIL has emerged as a serious shale gas player. We expect RIL to spend another $5.1 billion during calendar years 2013-2016 and the joint ventures will drill 3,846 wells during the life of the project against 514 drilled till 2012-end,” said Niraj Mansingka and Kiran Tulasi of Edelweiss Securities in a report.
The company, which reported its June quarter earnings last week, posted an 84 per cent rise in revenue from its shale gas venture in the US on rising production.
RIL’s shale gas business in the US comprises three upstream joint ventures with Chevron Corp, Pioneer Natural Resources and Carrizo Oil and Gas Inc, and a midstream joint venture with Pioneer.
RIL holds a 40 per cent stake in Atlas Energy; 45 per cent in Pioneer Natural Resources and 60 per cent in Carrizo Oil.
It also holds a 49.9 per cent stake in its midstream project with Pioneer.
The Mumbai-based company has invested in these ventures through its subsidiary, Reliance Holdings USA.
While low natural gas prices post acquisition has dented RIL’s business returns, higher earnings from liquid-rich assets and enhanced capital expenditure efficiency have offset most of the impact, Edelweiss added in its report released after the company announced its results. “RIL is pursuing a high leverage strategy to enhance equity returns in the shale business.”
RIL expects shale gas to contribute 8-10 per cent to consolidated earnings before interest, tax, depreciation and amortisation in 2014-15.
On the domestic front, the company has told analysts it will commence development on coalbed methane (CBM) blocks and the R-series in the eastern offshore KG Basin block after a final approval on the gas price hike.
Though the government has decided to adopt the Rangarajan committee proposal on raising the gas price, companies like RIL are waiting for an official notification on the matter. Indicative pricing has suggested that domestic gas could rise to around $8.4-8.5 a unit with the new mechanism from the current $4.2 unit now.
Batlivala and Karani in their report said RIL expected approval for the R-series to come in three week. “With the satellite field approval already in place, the company plans to commence the development post the final approval on gas price hike. Production from CBM is expected to peak at 5-7 million standard cubic metres per day and will take three years from commencement but will be taken up only after the gas price hike.”
The Mukesh Ambani-promoted conglomerate acquired shale gas assets in the US in 2010 for $3.45 billion and has invested $5.7 billion in shale gas joint ventures till the June 2013 quarter.
Shale gas is natural gas found trapped within shale formations.
“RIL has emerged as a serious shale gas player. We expect RIL to spend another $5.1 billion during calendar years 2013-2016 and the joint ventures will drill 3,846 wells during the life of the project against 514 drilled till 2012-end,” said Niraj Mansingka and Kiran Tulasi of Edelweiss Securities in a report.
The company, which reported its June quarter earnings last week, posted an 84 per cent rise in revenue from its shale gas venture in the US on rising production.
RIL’s shale gas business in the US comprises three upstream joint ventures with Chevron Corp, Pioneer Natural Resources and Carrizo Oil and Gas Inc, and a midstream joint venture with Pioneer.
RIL holds a 40 per cent stake in Atlas Energy; 45 per cent in Pioneer Natural Resources and 60 per cent in Carrizo Oil.
It also holds a 49.9 per cent stake in its midstream project with Pioneer.
The Mumbai-based company has invested in these ventures through its subsidiary, Reliance Holdings USA.
While low natural gas prices post acquisition has dented RIL’s business returns, higher earnings from liquid-rich assets and enhanced capital expenditure efficiency have offset most of the impact, Edelweiss added in its report released after the company announced its results. “RIL is pursuing a high leverage strategy to enhance equity returns in the shale business.”
RIL expects shale gas to contribute 8-10 per cent to consolidated earnings before interest, tax, depreciation and amortisation in 2014-15.
On the domestic front, the company has told analysts it will commence development on coalbed methane (CBM) blocks and the R-series in the eastern offshore KG Basin block after a final approval on the gas price hike.
Though the government has decided to adopt the Rangarajan committee proposal on raising the gas price, companies like RIL are waiting for an official notification on the matter. Indicative pricing has suggested that domestic gas could rise to around $8.4-8.5 a unit with the new mechanism from the current $4.2 unit now.
Batlivala and Karani in their report said RIL expected approval for the R-series to come in three week. “With the satellite field approval already in place, the company plans to commence the development post the final approval on gas price hike. Production from CBM is expected to peak at 5-7 million standard cubic metres per day and will take three years from commencement but will be taken up only after the gas price hike.”
Nissan inks 10-year export agreement with Ennore Port
Chennai: Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd, today entered into an agreement with Ennore Port Ltd (EPL), according to which it will export at least 60,000 cars a year through the port for the next 10 years.
According to the agreement, signed here today in the presence of Union Shipping Minister G K Vasan, Nissan will get concessions in the wharfage for up to 60,000 cars a year at the rate of 0.36 per cent for every unit. Its cars will be offered free parking space for the first 15 days and will be handled in priority basis in the port.
Nissan exported 54,000 cars in 2010-11, which were increased to 96,000 in 2011-12 and further to 98,000 in 2012-13. In the first quarter of the current financial year (April-June), the company shipped out 14,000 cars.
The company is selling cars in about 100 countries, said Kenichiro Yomura, managing director and chief executive, Nissan Motor India. It hopes to maintain around 100,000 units per annum for exports.
M A Bhaskarachar, chairman and managing director of EPL, said Nissan would get benefits ranging between 10 per cent and 40 per cent of a car value (sliding rates or volume discount). The port, located about 40 km north of Chennai, has developed a general cargo-cum-car terminal at a cost of Rs 140 crore, including a car yard of 35 acres, facilitating the parking of 10,000 cars.
The agreement can be terminated by both parties with a notice of three months from either side. In 2008, Nissan had signed a memorandum of understanding with EPL without any commitment of exports. Nissan was the first exporter of cars since 2010 from the port, which handled about 336,000 cars till now. The port can handle up to 300,000 units a year.
Port to scale down fund-raising plan
Ennore Port Ltd has decided to scale down its fund-raising plan. The port, which originally planned to raise Rs 1,000 crore through tax bonds, decided to raise only Rs 500 crore, said M A Bhaskarachar, chairman and managing director. The port is waiting for the government’s notification, which it hopes to get in two to three months. The funds to be raised would be used to buy 700 acres from the salt department land in and around the Port for future expansions and other activities, he added.
According to the agreement, signed here today in the presence of Union Shipping Minister G K Vasan, Nissan will get concessions in the wharfage for up to 60,000 cars a year at the rate of 0.36 per cent for every unit. Its cars will be offered free parking space for the first 15 days and will be handled in priority basis in the port.
Nissan exported 54,000 cars in 2010-11, which were increased to 96,000 in 2011-12 and further to 98,000 in 2012-13. In the first quarter of the current financial year (April-June), the company shipped out 14,000 cars.
The company is selling cars in about 100 countries, said Kenichiro Yomura, managing director and chief executive, Nissan Motor India. It hopes to maintain around 100,000 units per annum for exports.
M A Bhaskarachar, chairman and managing director of EPL, said Nissan would get benefits ranging between 10 per cent and 40 per cent of a car value (sliding rates or volume discount). The port, located about 40 km north of Chennai, has developed a general cargo-cum-car terminal at a cost of Rs 140 crore, including a car yard of 35 acres, facilitating the parking of 10,000 cars.
The agreement can be terminated by both parties with a notice of three months from either side. In 2008, Nissan had signed a memorandum of understanding with EPL without any commitment of exports. Nissan was the first exporter of cars since 2010 from the port, which handled about 336,000 cars till now. The port can handle up to 300,000 units a year.
Port to scale down fund-raising plan
Ennore Port Ltd has decided to scale down its fund-raising plan. The port, which originally planned to raise Rs 1,000 crore through tax bonds, decided to raise only Rs 500 crore, said M A Bhaskarachar, chairman and managing director. The port is waiting for the government’s notification, which it hopes to get in two to three months. The funds to be raised would be used to buy 700 acres from the salt department land in and around the Port for future expansions and other activities, he added.
Private equity investment gaining traction in agri-business
Chennai: Private equity and venture capital firms invested $126 million across nine Indian agri-business companies during the first six months of 2013, 75% more than the $72 million (invested across six companies) during the same period last year, as per data from Venture Intelligence which specializes in private company financials, transactions and valuations in India.
The largest private equity investment in the industry during H1 2013 was Multiples Private Equity's Rs 250 crore ($43.24 million) investment in Bangalore-based Milltec Group which develops technology and machinery for rice milling, roller flour milling, maize (corn) milling and agro processing plants.
Another buyout focused PE firm, India Value Fund, has committed $40 million to pick up a majority stake in Kochi-based spices firm VKL Seasoning. VKL, a spin out from the Vallabhdas Kanji Group, provides seasonings and flavors to customers - typically quick service restaurants (QSR) - in India, the Middle East and Africa.
In February, Qatar-based Hassad Food had acquired a 69% stake in PE-backed rice exporter Bush Foods Overseas for $135 million, fetching StanChart PE a 2.5 times return on its investment. And just last week, the publicly listed rice exporter Kohinoor Foods agreed to sell a 20% stake for almost Rs 113 crore ($18.8 million) to Al Dahra Holdings, an Abu Dhabi-based agriculture focused investment firm.
"The rising appetite for such companies among overseas investors and also the higher prices being enjoyed by agri commodities in recent years could continue to sustain private equity interest in the industry," Arun Natarajan, chief executive officer, Venture Intelligence said.
The largest private equity investment in the industry during H1 2013 was Multiples Private Equity's Rs 250 crore ($43.24 million) investment in Bangalore-based Milltec Group which develops technology and machinery for rice milling, roller flour milling, maize (corn) milling and agro processing plants.
Another buyout focused PE firm, India Value Fund, has committed $40 million to pick up a majority stake in Kochi-based spices firm VKL Seasoning. VKL, a spin out from the Vallabhdas Kanji Group, provides seasonings and flavors to customers - typically quick service restaurants (QSR) - in India, the Middle East and Africa.
In February, Qatar-based Hassad Food had acquired a 69% stake in PE-backed rice exporter Bush Foods Overseas for $135 million, fetching StanChart PE a 2.5 times return on its investment. And just last week, the publicly listed rice exporter Kohinoor Foods agreed to sell a 20% stake for almost Rs 113 crore ($18.8 million) to Al Dahra Holdings, an Abu Dhabi-based agriculture focused investment firm.
"The rising appetite for such companies among overseas investors and also the higher prices being enjoyed by agri commodities in recent years could continue to sustain private equity interest in the industry," Arun Natarajan, chief executive officer, Venture Intelligence said.
Natural gas output will rise by 66% in 4 years: Moily
New Delhi: Gas output from all sources is expected to be around 105 million metric standard cubic metres per day (mmscmd) in 2013-14. By 2016-17, this is expected to touch 175 mmscmd, Petroleum and Natural Gas Minister M. Veerappa Moily told media-persons here on Friday. Moily also said the increased production of domestic gas and higher availability of imported gas was bound to result in a reduction in gas prices.
The additional gas sources also include ONGC’s block in the KG basin (KG-DWN 98/2), where it has projected to pump out 29 mmscmd of gas in 2016-17.
“One of the remarkable features is the finding in North East. Jubilant Energy had already declared the discovery of 0.7 trillion cubic feet (tcf) in Tripura. There are huge prospects in Manipur, which can go up to as high as 7 tcf,” Moily added.
However, the exploration is yet to take place due to unapproachable terrain. “I am taking this up with the Manipur Government and the Planning Commission to ensure that a few bridges are constructed to enable the rig to reach to the gas field,” the Minister said.
Last month, the Cabinet Committee on Economic Affairs gave its go-ahead for a gas pricing formula suggested by the C. Rangarajan panel. This would come into effect from April 2014 and is expected to offer the explorers nearly double the price for natural gas than at present.
The additional gas sources also include ONGC’s block in the KG basin (KG-DWN 98/2), where it has projected to pump out 29 mmscmd of gas in 2016-17.
“One of the remarkable features is the finding in North East. Jubilant Energy had already declared the discovery of 0.7 trillion cubic feet (tcf) in Tripura. There are huge prospects in Manipur, which can go up to as high as 7 tcf,” Moily added.
However, the exploration is yet to take place due to unapproachable terrain. “I am taking this up with the Manipur Government and the Planning Commission to ensure that a few bridges are constructed to enable the rig to reach to the gas field,” the Minister said.
Last month, the Cabinet Committee on Economic Affairs gave its go-ahead for a gas pricing formula suggested by the C. Rangarajan panel. This would come into effect from April 2014 and is expected to offer the explorers nearly double the price for natural gas than at present.
BPCL to invest Rs 900 cr to set up new LPG pipeline
Kochi: Bharat Petroleum Corporation will invest Rs 900 crore to set up a new LPG pipeline from its Kochi refinery to Coimbatore and to enhance the storage capacity at its Irumpanam installation.
The 229-km pipeline, at an investment of Rs 600 crore, will not only minimise transportation of gas through road but also connect the company’s bottling plants in Palakkad and Coimbatore, thereby improving the distribution network, Prasad K. Panicker, Executive Director, BPCL Kochi Refinery, said.
The company would invest another Rs 300 crore at its Irumpanam unit near Kochi Refinery to increase the storage capacity by four million tonnes, Panicker told Business Line.
The storage capacitywill be increased to 8 million tonnes with the completion of Integrated Refinery Expansion Project (IREP), he said.
The funds for both these projects will be in addition to the Rs 14,225-crore investments set apart by the company for IREP, which envisages increasing the refining capacity to 15.5 mmtpa from 9.5 mmtpa.
According to Panicker, the company intends to launch both these projects simultaneously with the IREP project scheduled to be commissioned by September 2015.
LPG requirement in Kerala is estimated at 60,000 tonnes a month and BPCL produces 45,000 tonnes. On completion of the project, Kerala will have surplus LPG, he said.
There are also plans to extend its Cochin-Coimbatore-Karur (CCK) pipeline to Bangalore to move various auto fuel products.
Once the work is complete, more products such as petrol, diesel and kerosene can be moved via the pipeline to Karur, Coimbatore and Bangalore.
It may be recalled that BPCL had recently commissioned a 35-km ATF pipeline to Cochin International Airport from Kochi refinery at an investment of Rs 41 crore. Earlier, ATF used to be supplied by tanker trucks.
The 229-km pipeline, at an investment of Rs 600 crore, will not only minimise transportation of gas through road but also connect the company’s bottling plants in Palakkad and Coimbatore, thereby improving the distribution network, Prasad K. Panicker, Executive Director, BPCL Kochi Refinery, said.
The company would invest another Rs 300 crore at its Irumpanam unit near Kochi Refinery to increase the storage capacity by four million tonnes, Panicker told Business Line.
The storage capacitywill be increased to 8 million tonnes with the completion of Integrated Refinery Expansion Project (IREP), he said.
The funds for both these projects will be in addition to the Rs 14,225-crore investments set apart by the company for IREP, which envisages increasing the refining capacity to 15.5 mmtpa from 9.5 mmtpa.
According to Panicker, the company intends to launch both these projects simultaneously with the IREP project scheduled to be commissioned by September 2015.
LPG requirement in Kerala is estimated at 60,000 tonnes a month and BPCL produces 45,000 tonnes. On completion of the project, Kerala will have surplus LPG, he said.
There are also plans to extend its Cochin-Coimbatore-Karur (CCK) pipeline to Bangalore to move various auto fuel products.
Once the work is complete, more products such as petrol, diesel and kerosene can be moved via the pipeline to Karur, Coimbatore and Bangalore.
It may be recalled that BPCL had recently commissioned a 35-km ATF pipeline to Cochin International Airport from Kochi refinery at an investment of Rs 41 crore. Earlier, ATF used to be supplied by tanker trucks.
Lupin to market MSD’s pneumococcal vaccine in India
New Delhi: US-based drug maker MSD has tied up with Mumbai-based Lupin to market MSD’s 23-valent Pneumococcal Polysaccharide Vaccine in India. Under the agreement, Lupin would have a non-exclusive licence to market, promote and distribute the vaccine under a different brand name.
After the announcement, the Lupin stock touched an all-time high of Rs 904.95 in morning trade on the BSE. It closed at Rs 890.1, up 1.9 per cent.
Currently, MSD India operates in various therapeutic segments, including metabolics, cardiovascular, vaccines, critical care and oncology and accounts for a product portfolio of about 75 brands in India.
Pneumococcal disease kills more patients worldwide than any other vaccine-preventable disease. Globally, 1.6 million people die of pneumococcal disease every year — three people die every minute.
“Adults with comorbid conditions such as chronic lung disease, diabetes, chronic heart diseases, chronic liver diseases and immune compromised diseases, as well as adults aged more than 65, are at increased risk of pneumococcal disease, compared to healthy adults,” stated a Lupin release.
KG Ananthakrishnan, managing director, MSD India, said, “It is a perfect amalgamation, as MSD brings the research and scientific excellence for Pneumococcal Polysaccharide Vaccines and Lupin brings its marketing excellence and significant reach among key clinician categories to drive product access.”
After the announcement, the Lupin stock touched an all-time high of Rs 904.95 in morning trade on the BSE. It closed at Rs 890.1, up 1.9 per cent.
Currently, MSD India operates in various therapeutic segments, including metabolics, cardiovascular, vaccines, critical care and oncology and accounts for a product portfolio of about 75 brands in India.
Pneumococcal disease kills more patients worldwide than any other vaccine-preventable disease. Globally, 1.6 million people die of pneumococcal disease every year — three people die every minute.
“Adults with comorbid conditions such as chronic lung disease, diabetes, chronic heart diseases, chronic liver diseases and immune compromised diseases, as well as adults aged more than 65, are at increased risk of pneumococcal disease, compared to healthy adults,” stated a Lupin release.
KG Ananthakrishnan, managing director, MSD India, said, “It is a perfect amalgamation, as MSD brings the research and scientific excellence for Pneumococcal Polysaccharide Vaccines and Lupin brings its marketing excellence and significant reach among key clinician categories to drive product access.”
U.P. to focus on economic infra in Rs 69,200-cr Plan outlay
New Delhi: The Plan outlay for Uttar Pradesh for 2013-14 was on Thursday finalised at Rs 69,200 crore, including Central assistance of about Rs 11,225 crore. The Plan size was finalised at a meeting between Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, and Chief Minister of Uttar Pradesh Akhilesh Yadav.
In addition, Rs 18,000crore is likely to flow from the Centre to the State through various Centrally-sponsored schemes.
Briefing the Commission on the State’s development strategy, Yadav said infrastructure and industrial policies were being implemented to attract private investment and all district headquarters are being connected by four-lane roads. By the end of the Plan, all 500 plus habitations will be connected with all-weather roads in two years, Yadav said.
The Chief Minister said the State Government will earmark more than 20 per cent of the outlay for economic infrastructure. On social infrastructure, the State Government proposed to spend 32 per cent of the outlay.
Ahluwalia complemented the State Government for restoring economic activity and focusing on the development of social and physical infrastructure. He said the State needed to further encourage private participation by creating an atmosphere conducive to investment. Education and health should be given priority while working out the development strategy, he added.
Ahluwalia drew attention to the share of manufacturing sector/industry in gross state domestic product and pointed out that it was declining due to unfavourable macro-economic conditions. The proposed new industrial policy aimed at creating investor- friendly environment was a step in the right direction, but private investment had to be incentivised to revive the industrial, he added.
Regarding the State Government’s proposal to connect all district headquarters by four-lane roads and construct 300 bridges, Ahluwalia suggested that State may use PPP (public-private partnership) mode for these projects so that they could avail of benefits under Viability Gap Funding Scheme.
In addition, Rs 18,000crore is likely to flow from the Centre to the State through various Centrally-sponsored schemes.
Briefing the Commission on the State’s development strategy, Yadav said infrastructure and industrial policies were being implemented to attract private investment and all district headquarters are being connected by four-lane roads. By the end of the Plan, all 500 plus habitations will be connected with all-weather roads in two years, Yadav said.
The Chief Minister said the State Government will earmark more than 20 per cent of the outlay for economic infrastructure. On social infrastructure, the State Government proposed to spend 32 per cent of the outlay.
Ahluwalia complemented the State Government for restoring economic activity and focusing on the development of social and physical infrastructure. He said the State needed to further encourage private participation by creating an atmosphere conducive to investment. Education and health should be given priority while working out the development strategy, he added.
Ahluwalia drew attention to the share of manufacturing sector/industry in gross state domestic product and pointed out that it was declining due to unfavourable macro-economic conditions. The proposed new industrial policy aimed at creating investor- friendly environment was a step in the right direction, but private investment had to be incentivised to revive the industrial, he added.
Regarding the State Government’s proposal to connect all district headquarters by four-lane roads and construct 300 bridges, Ahluwalia suggested that State may use PPP (public-private partnership) mode for these projects so that they could avail of benefits under Viability Gap Funding Scheme.
IIM-C sets up business incubation centre
Kolkata: The Indian Institute of Management – Calcutta has signed an agreement with four enterprises to set up a business incubation centre in its campus. The incubation unit is a part of Centre for Entrepreneurship and Innovation of the Institute. The incubation centre, as the name suggests, will be used to promote entrepreneurship.
According to a release issued by the IIM-(C), the institute has entered into agreements with SAARC-award winning non-governmental organisation Doctors For You, a hybrid social enterprise start-up called SwitchON-ONergy, an IT-based tuition centre enterprise Edelwell Solutions and social enterprise Utopia.
These social enterprises have been chosen from the ventures which had qualified for the final rounds of the Tata Social Enterprise Challenge, a joint initiative of the Tata Group and IIM – C. Professor Ashok Banerjee, who is the Dean of new initiatives and external relations, will be the principal mentor of the incubation unit.
"The incubation facilities at IIM Calcutta will include mentorship support of faculty and alumni. We have developed a unique model of mentorship to ensure better monitoring and effectiveness of the programme," Banerjee was quoted in the release.
According to a release issued by the IIM-(C), the institute has entered into agreements with SAARC-award winning non-governmental organisation Doctors For You, a hybrid social enterprise start-up called SwitchON-ONergy, an IT-based tuition centre enterprise Edelwell Solutions and social enterprise Utopia.
These social enterprises have been chosen from the ventures which had qualified for the final rounds of the Tata Social Enterprise Challenge, a joint initiative of the Tata Group and IIM – C. Professor Ashok Banerjee, who is the Dean of new initiatives and external relations, will be the principal mentor of the incubation unit.
"The incubation facilities at IIM Calcutta will include mentorship support of faculty and alumni. We have developed a unique model of mentorship to ensure better monitoring and effectiveness of the programme," Banerjee was quoted in the release.
PM clears additional funds for Railways and Power sectors in the North East; Directs Planning Commission to call a meeting of all NE Chief Ministers
New Delhi: The Prime Minister chaired a meeting to review the status of infrastructure development in the North Eastern region. The meeting was attended by the Finance Minister, the Civil Aviation Minister, the Railway Minister, the Minister for Road Transport and Highways, the Telecom Minister, the Minister for Power, the Minister for DONER and the Deputy Chairman of the Planning Commission.
The review covered the railway, road, airport, power, and telecom projects in the region. The focus was on speeding up implementation of ongoing projects and also fill-in gaps to ensure full physical and electronic connectivity to and in the North Eastern region. The Deputy Chairman of the Planning Commission emphasised that on the Prime Minister's direction a special section was for the first time included in the XI Plan document on North Eastern Region which has accelerated the growth process in the North Eastern States. This section is continued in the XII Plan. He reported the eight states of the region grew at 9.95% during the XI plan period, well above the national average of 8%.
At the meeting, it was agreed that the Finance Ministry will provide an additional Rs. 400 crores to complete three critical rail projects before March 2014. These are i) the Harmati- Naharlagun project to provide the first rail connectivity to Arunachal Pradesh. ii) the Dudhnoi- Mendipathar project to connect Meghalaya and iii) the Rangapara- North Lakhimpur gauge conversion project. The Ministry of Railways committed that the first trial runs will begin on these lines in January 2014. The Finance Ministry will also provide upto Rs 200 crore for two more projects i) the Lumding – Silchar gauge conversion and ii) the Bogibeel bridge.
It was also decided to provide additional funds from the NLCPR for Intra- State Transmission line networks in Arunachal Pradesh and Sikkim. The Ministry of Power will expedite work on many hydro-projects which are held up due to various reasons. Priority will be given to building strong transmission capacities to transmit power from this potential power rich region, both in hydro and gas based power.
An Empowered Committee will be set up to monitor progress on all infrastructure projects in the North East region.
The Prime Minister has also directed the Planning Commission to call a meeting of all the Chief Ministers of the North Eastern States to improve inter-state coordination for speedy completion of the Infrastructure projects.
The review covered the railway, road, airport, power, and telecom projects in the region. The focus was on speeding up implementation of ongoing projects and also fill-in gaps to ensure full physical and electronic connectivity to and in the North Eastern region. The Deputy Chairman of the Planning Commission emphasised that on the Prime Minister's direction a special section was for the first time included in the XI Plan document on North Eastern Region which has accelerated the growth process in the North Eastern States. This section is continued in the XII Plan. He reported the eight states of the region grew at 9.95% during the XI plan period, well above the national average of 8%.
At the meeting, it was agreed that the Finance Ministry will provide an additional Rs. 400 crores to complete three critical rail projects before March 2014. These are i) the Harmati- Naharlagun project to provide the first rail connectivity to Arunachal Pradesh. ii) the Dudhnoi- Mendipathar project to connect Meghalaya and iii) the Rangapara- North Lakhimpur gauge conversion project. The Ministry of Railways committed that the first trial runs will begin on these lines in January 2014. The Finance Ministry will also provide upto Rs 200 crore for two more projects i) the Lumding – Silchar gauge conversion and ii) the Bogibeel bridge.
It was also decided to provide additional funds from the NLCPR for Intra- State Transmission line networks in Arunachal Pradesh and Sikkim. The Ministry of Power will expedite work on many hydro-projects which are held up due to various reasons. Priority will be given to building strong transmission capacities to transmit power from this potential power rich region, both in hydro and gas based power.
An Empowered Committee will be set up to monitor progress on all infrastructure projects in the North East region.
The Prime Minister has also directed the Planning Commission to call a meeting of all the Chief Ministers of the North Eastern States to improve inter-state coordination for speedy completion of the Infrastructure projects.
Saturday, July 20, 2013
Opportunities for foreign players in power exchanges
New Delhi: The Government’s decision to allow foreign direct investment through automatic route in power exchanges while retaining the cap at 49 per cent will open up opportunities for overseas players to participate in the growth and development of the sector, especially the exchanges.
“Introduction of global best practices, especially in the areas of technology, products, modern management skills etc, as a result of foreign collaboration are expected to lead to higher service standards at power exchanges,” said Pawan Kumar Agarwal, CFO and Company Secretary of Power Exchange India Ltd.
The share of power exchanges in the total short-term market has more than doubled over the last five years.
“Introduction of global best practices, especially in the areas of technology, products, modern management skills etc, as a result of foreign collaboration are expected to lead to higher service standards at power exchanges,” said Pawan Kumar Agarwal, CFO and Company Secretary of Power Exchange India Ltd.
The share of power exchanges in the total short-term market has more than doubled over the last five years.
Blackstone picks up 97.9% in Agile Electric for Rs 600 cr
Chennai: Blackstone Group has acquired a 97.9 per cent stake in Chennai-based Agile Electric Sub Assembly Pvt Ltd for about Rs 600 crore.
Following the deal, the US-based private equity investor will also control a 58 per cent stake in Igarashi Motors India, a listed subsidiary of Agile Electric.
Blackstone and other investors will have to make an open offer to Igarashi shareholders.
According to a BSE notification by Igarashi, Agile Electric and certain shareholders of Agile have entered into agreements with investors Blackstone Capital Partners and Blackstone Family Investment Partnership (Cayman).
Agile Electric is a manufacturer of building machinery, assembly lines and industrial feeders for the automotive industry.
Igarashi Motors was originally a Japanese auto components company before it exited the country. It is currently a subsidiary of Agile Electric and specialises in design and manufacture of DC motors and gear motors.
Following the deal, the US-based private equity investor will also control a 58 per cent stake in Igarashi Motors India, a listed subsidiary of Agile Electric.
Blackstone and other investors will have to make an open offer to Igarashi shareholders.
According to a BSE notification by Igarashi, Agile Electric and certain shareholders of Agile have entered into agreements with investors Blackstone Capital Partners and Blackstone Family Investment Partnership (Cayman).
Agile Electric is a manufacturer of building machinery, assembly lines and industrial feeders for the automotive industry.
Igarashi Motors was originally a Japanese auto components company before it exited the country. It is currently a subsidiary of Agile Electric and specialises in design and manufacture of DC motors and gear motors.
L&T bags Rs 2,085-cr order to construct expressway in Oman
Mumbai: The transportation infrastructure business of L&T has bagged an order worth Rs 2,085 crore from the Transport Ministry of Oman for the construction of the Al Batinah Expressway package 4.
The project is scheduled for completion in 36 months and involves building a 50-km, four-lane dual carriage expressway, two grade-separated interchanges, seven overpasses and five bridges.
The project is scheduled for completion in 36 months and involves building a 50-km, four-lane dual carriage expressway, two grade-separated interchanges, seven overpasses and five bridges.
Italian luxury brand Furla to expand its presence in India
New Delhi: Italian high-end accessories brand Furla plans to expand its presence in the Indian market once the government clears its joint venture with Genesis Luxury Fashion, a top official said.
"We are yet to get a go ahead from the Foreign Investment Promotion Board of India to have a joint venture here. The moment it happens, our investments will be made at a super-fast speed," Eraldo Poletto, CEO of the Italian firm, told ET. Poletto, 51, was in Delhi on an official visit.
Furla, known for its handbags and shoes, has sought the government's approval to operate single-brand retail outlets through a 51:49 joint venture with Gurgaon-based Genesis, which currently runs two Furla stores as a franchisee and plans to open a third one in either Kolkata or Bangalore.
The joint venture plans to invest about Rs 13 crore in the first four years to open stores, with Furla bringing in Rs 6.6 crore, according to the application submitted to FIPB.
Poletto sees India as a unique market where one requires a lot of patience to establish a brand in the minds of people and expect financial returns. "The value of time here is different from anywhere else in the world," he said. "I think a brand has to wait to evolve in India, but once it does the growth is faster." He expects Furla stores in India to break even in 2-3 years of operations.
The Bologna-based, family-owned brand is on an aggressive expansion drive in Asia. Earlier this year it announced a joint venture with China's Fung Group to open 100 boutiques there in four years.
Japan is Furla's biggest market, accounting for 27% of its total sales, ahead of home market Italy that contributes 25% of the firm's turnover. The company reported 18% jump in its turnover last calendar at 212 million (approx Rs 1,650 crore).
"Asia (excluding Japan) is around 13% of the total business and we have very aggressive plans to become much bigger in the next two years," Poletto said. Furla is present in more than 90 countries with about 325 single-brand stores. It produces about 2.5 million pieces every year, mostly in Italy. Some items sourced from China as well.
When asked about India as a sourcing destination, Poletto said Furla did buy some jewellery and accessories from India some time back, but not at the moment. "India is competitive if we use Indian leather but it is different from the kind of products we do," he said.
"We are yet to get a go ahead from the Foreign Investment Promotion Board of India to have a joint venture here. The moment it happens, our investments will be made at a super-fast speed," Eraldo Poletto, CEO of the Italian firm, told ET. Poletto, 51, was in Delhi on an official visit.
Furla, known for its handbags and shoes, has sought the government's approval to operate single-brand retail outlets through a 51:49 joint venture with Gurgaon-based Genesis, which currently runs two Furla stores as a franchisee and plans to open a third one in either Kolkata or Bangalore.
The joint venture plans to invest about Rs 13 crore in the first four years to open stores, with Furla bringing in Rs 6.6 crore, according to the application submitted to FIPB.
Poletto sees India as a unique market where one requires a lot of patience to establish a brand in the minds of people and expect financial returns. "The value of time here is different from anywhere else in the world," he said. "I think a brand has to wait to evolve in India, but once it does the growth is faster." He expects Furla stores in India to break even in 2-3 years of operations.
The Bologna-based, family-owned brand is on an aggressive expansion drive in Asia. Earlier this year it announced a joint venture with China's Fung Group to open 100 boutiques there in four years.
Japan is Furla's biggest market, accounting for 27% of its total sales, ahead of home market Italy that contributes 25% of the firm's turnover. The company reported 18% jump in its turnover last calendar at 212 million (approx Rs 1,650 crore).
"Asia (excluding Japan) is around 13% of the total business and we have very aggressive plans to become much bigger in the next two years," Poletto said. Furla is present in more than 90 countries with about 325 single-brand stores. It produces about 2.5 million pieces every year, mostly in Italy. Some items sourced from China as well.
When asked about India as a sourcing destination, Poletto said Furla did buy some jewellery and accessories from India some time back, but not at the moment. "India is competitive if we use Indian leather but it is different from the kind of products we do," he said.
Steel Minister leads a delegation to Canada for acquisition of minerals
RINL inks MOU with Mc Master University to strengthen R&D
New Delhi: A High Level delegation led by the Union Minister of Steel Shri Beni Prasad Verma, currently on a week-long tour to Canada, reached Toronto on 15th July with an objective to have cooperation between organizations of both the countries for sourcing/acquisition of minerals, viz. coking coal and iron ore, as a long term perspective for sustained growth of Indian Steel industry. Acquisition of intellectual property and cooperation in R&D activities are also part of the agenda.
On the first day of the visit, the delegation concluded an MoU between RINL and McMaster University, Hamilton, Canada, to collaborate and strengthen Research cooperation, in the areas of Steel making, Beneficiation and Pellet making from low grade magnetite and also towards training, exchange of research, etc. An MoU got signed by Sri A P Choudhary, CMD, Rashtriya Ispat Nigam Limited (RINL), with Dr Peter Mascher, McMaster University on 16th July.
Shri Beni Prasad Verma mentioned that such cooperation with leading University will strengthen R&D activities in steel sector which is a must to achieve Government’s planned level of over 200 million tonnes of capacity during next few years. On a query by a Canadian organization about export of iron ore from India, Sri Beni Prasad Verma mentioned that Government has already taken action which has resulted in sharp decline of exports by 75%. He also mentioned that although India has rich reserves of iron ore, it is opportune time for Indian steel industry to acquire more iron ore mines to meet the requirement of next generation, the country being populous.
Shri Verma is also visiting mineral rich State of British Columbia and will have discussions with the Premier of British Columbia and other concerned Ministers and organizations on the subject during the visit.
The Secretary, Ministry of Steel, Shri DRS Chaudhary and Joint Secretary (Steel) Sri Lokesh Chandra are also accompanying the Minister as part of the delegation.
New Delhi: A High Level delegation led by the Union Minister of Steel Shri Beni Prasad Verma, currently on a week-long tour to Canada, reached Toronto on 15th July with an objective to have cooperation between organizations of both the countries for sourcing/acquisition of minerals, viz. coking coal and iron ore, as a long term perspective for sustained growth of Indian Steel industry. Acquisition of intellectual property and cooperation in R&D activities are also part of the agenda.
On the first day of the visit, the delegation concluded an MoU between RINL and McMaster University, Hamilton, Canada, to collaborate and strengthen Research cooperation, in the areas of Steel making, Beneficiation and Pellet making from low grade magnetite and also towards training, exchange of research, etc. An MoU got signed by Sri A P Choudhary, CMD, Rashtriya Ispat Nigam Limited (RINL), with Dr Peter Mascher, McMaster University on 16th July.
Shri Beni Prasad Verma mentioned that such cooperation with leading University will strengthen R&D activities in steel sector which is a must to achieve Government’s planned level of over 200 million tonnes of capacity during next few years. On a query by a Canadian organization about export of iron ore from India, Sri Beni Prasad Verma mentioned that Government has already taken action which has resulted in sharp decline of exports by 75%. He also mentioned that although India has rich reserves of iron ore, it is opportune time for Indian steel industry to acquire more iron ore mines to meet the requirement of next generation, the country being populous.
Shri Verma is also visiting mineral rich State of British Columbia and will have discussions with the Premier of British Columbia and other concerned Ministers and organizations on the subject during the visit.
The Secretary, Ministry of Steel, Shri DRS Chaudhary and Joint Secretary (Steel) Sri Lokesh Chandra are also accompanying the Minister as part of the delegation.
Electrotherm launches advanced induction furnace unit
Hyderabad: Equipment-maker for steel industry Electrotherm (India) has launched an advanced induction furnace unit that provides for simultaneous dephosphorisation and desulphrisation.
Dephosphorisation and desulphrisation are important in steel-making as high content of phosphorus and sulphur makes steel very brittle.
The Bureau of Indian Standards’ new rules on limiting phosphorus and sulphur in steel will come into force from October 1, 2013.
“Our new product, EldFOS, will help secondary steel manufacturers to comply with the new BIS rules and also international standards,’’ Sharat Chojar, General Manager, Electrotherm, told newspersons here on Tuesday.
The Ahmedabad-based company had also applied for patent on the product recently, he added.
There are about 2,500 induction steel units in the country. “Out of this, 800 use our equipment," he added.
The steel production in India was 76 million tonnes during 2012-13 and 25 million tonnes of this was produced through secondary route using induction furnaces.
Dephosphorisation and desulphrisation are important in steel-making as high content of phosphorus and sulphur makes steel very brittle.
The Bureau of Indian Standards’ new rules on limiting phosphorus and sulphur in steel will come into force from October 1, 2013.
“Our new product, EldFOS, will help secondary steel manufacturers to comply with the new BIS rules and also international standards,’’ Sharat Chojar, General Manager, Electrotherm, told newspersons here on Tuesday.
The Ahmedabad-based company had also applied for patent on the product recently, he added.
There are about 2,500 induction steel units in the country. “Out of this, 800 use our equipment," he added.
The steel production in India was 76 million tonnes during 2012-13 and 25 million tonnes of this was produced through secondary route using induction furnaces.
Dutch firm inks services pact with Maheshwari Electronics
Bangalore: The Netherlands-based Exset B.V. and Bangalore-based Maheshwari Electronics and Cable TV Pvt Ltd (Maheshwari Electronics) have partnered to tap the digitisation landscape across South India.
“As the country goes into the final phases of digitisation, this partnership will ensure delivery of service and a next generation content protection system to the cable fraternity in the region,” said Anil Kabra, Managing Director of Maheshwari Electronics.
Under the agreement, Exset B.V. will be responsible for providing DMS, CAS and Middleware to customers/cable operators of Maheshwari Electronics for its Digital Cable Platform.
This association aims to drive governance, television commerce, advertising and magazine services in a predominantly one–way environment for its end–consumers.
DMS will allow Maheshwari Electronics to offer new services to its customers in a one-way broadcast environment; these could include magazine, shopping, Government apps.
Alex Borland, Managing Director and CEO, Exset B.V. said, “We are proud to be associated with Maheshwari Electronics as their content protection and monetisation partner. This reinforces our commitment to the last cable operator wanting to digitise and I am glad and proud that an able partner like them has joined hands with us.”
“As the country goes into the final phases of digitisation, this partnership will ensure delivery of service and a next generation content protection system to the cable fraternity in the region,” said Anil Kabra, Managing Director of Maheshwari Electronics.
Under the agreement, Exset B.V. will be responsible for providing DMS, CAS and Middleware to customers/cable operators of Maheshwari Electronics for its Digital Cable Platform.
This association aims to drive governance, television commerce, advertising and magazine services in a predominantly one–way environment for its end–consumers.
DMS will allow Maheshwari Electronics to offer new services to its customers in a one-way broadcast environment; these could include magazine, shopping, Government apps.
Alex Borland, Managing Director and CEO, Exset B.V. said, “We are proud to be associated with Maheshwari Electronics as their content protection and monetisation partner. This reinforces our commitment to the last cable operator wanting to digitise and I am glad and proud that an able partner like them has joined hands with us.”
Tour operators bet big on luxury domestic travel
Mumbai: Enjoying the sunset on a private yacht or hopping on a heli-taxi service to some of the lesser-known pockets of the country, Indian travellers are seeking to explore the most exquisite travel ideas.
While luxury tourism caters to a niche market in India, tour operators expect this segment to grow by 25 per cent annually, heightened by the depreciating rupee making outbound travel costlier and an array of offers dished out by tour operators for domestic travellers.
Travel spends
“We expect the luxury domestic travel sector to grow by 20-25 per cent. In next 5-10 years, India will see a greater amount of travel spends,” said Sunil Hasija, Executive Director, TUI India. A Barclays report highlighted that lifestyle experiences such as travel have become the most popular use of wealth. About 43 per cent of high net worth individuals (HNIS) in India cited travel as their first option, the report added. The trend is bringing cheer among the travel and tourism players who are betting big on the domestic travel space.
According to industry body Assocham, the tourism industry saw a growth of 35 per cent in domestic tourists in the first six months of 2013 compared with a drop of 20 per cent during the same period last year.
Tour operators say that there is an increasing demand seen for newer destinations in the domestic circuit. Luxury villas and spas have come up to cater to this demand.
“We have seen bookings go up for regions such as Rajasthan, Andaman, Kerala, North-east and Kashmir for luxury holidays,” said Rajeev Kale, Chief Operating Officer – Domestic, Sports and Cruises, Thomas Cook (India).
Thomas Cook (India)’s domestic luxury brand ‘Indian Indulgence’ includes activities such as wildlife safaris with trained naturalists, decadent spa and wellness programmes, luxury train experiences and unique accommodation.
Travel metasearch site Wego.com has also seen a surge in domestic travel searches. “The search volumes for domestic getaways to places such as Srinagar, Mahabaleshwar, Ooty, Kumarakom, Kovalam and Darjeeling have shown an increase,” said Ashwin Jayasankar, Head – Product and Marketing, Wego India.
A luxury domestic tour package costs on an average Rs 2 lakh per couple for a five to seven-day trip, which includes hotel stay, food, other activities.
With the emphasis shifting more on unexplored and offbeat destinations and unique experience-based itineraries, hospitality players such as the Taj Group are also capitalising on this growing segment. ‘Powerfly Vacations’ of the Taj Air and Deccan Charters enables travellers to hire an aircraft for a vacation and fly straight to some of the luxury properties of Taj hotels, resorts and palaces. The services costs anything between Rs 80,000 to Rs 3 lakh per flying hour.
While luxury tourism caters to a niche market in India, tour operators expect this segment to grow by 25 per cent annually, heightened by the depreciating rupee making outbound travel costlier and an array of offers dished out by tour operators for domestic travellers.
Travel spends
“We expect the luxury domestic travel sector to grow by 20-25 per cent. In next 5-10 years, India will see a greater amount of travel spends,” said Sunil Hasija, Executive Director, TUI India. A Barclays report highlighted that lifestyle experiences such as travel have become the most popular use of wealth. About 43 per cent of high net worth individuals (HNIS) in India cited travel as their first option, the report added. The trend is bringing cheer among the travel and tourism players who are betting big on the domestic travel space.
According to industry body Assocham, the tourism industry saw a growth of 35 per cent in domestic tourists in the first six months of 2013 compared with a drop of 20 per cent during the same period last year.
Tour operators say that there is an increasing demand seen for newer destinations in the domestic circuit. Luxury villas and spas have come up to cater to this demand.
“We have seen bookings go up for regions such as Rajasthan, Andaman, Kerala, North-east and Kashmir for luxury holidays,” said Rajeev Kale, Chief Operating Officer – Domestic, Sports and Cruises, Thomas Cook (India).
Thomas Cook (India)’s domestic luxury brand ‘Indian Indulgence’ includes activities such as wildlife safaris with trained naturalists, decadent spa and wellness programmes, luxury train experiences and unique accommodation.
Travel metasearch site Wego.com has also seen a surge in domestic travel searches. “The search volumes for domestic getaways to places such as Srinagar, Mahabaleshwar, Ooty, Kumarakom, Kovalam and Darjeeling have shown an increase,” said Ashwin Jayasankar, Head – Product and Marketing, Wego India.
A luxury domestic tour package costs on an average Rs 2 lakh per couple for a five to seven-day trip, which includes hotel stay, food, other activities.
With the emphasis shifting more on unexplored and offbeat destinations and unique experience-based itineraries, hospitality players such as the Taj Group are also capitalising on this growing segment. ‘Powerfly Vacations’ of the Taj Air and Deccan Charters enables travellers to hire an aircraft for a vacation and fly straight to some of the luxury properties of Taj hotels, resorts and palaces. The services costs anything between Rs 80,000 to Rs 3 lakh per flying hour.
Essar Projects wins its maiden EPC contract from BPCL worth Rs 550 crores
Kolkata: Essar Projects Limited (EPL), a Global EPC engineering, procurement, construction company headquartered in Dubai, on Tuesday announced that it has secured a contract valued at over Rs 550 crore from Bharat Petroleum Corporation Ltd ( BPCLBSE -1.07 %) to participate in its major refinery expansion project in Kochi.
EPL has won the contract in a consortium with GR Engineering of Mumbai for the engineering, procurement & construction (EPC) of the reactor regenerator package of 2.2 MMTPA fluid catalytic cracking unit (FCCU) at the Kochi refinery, which is set to expand to 15.5 MMTPA. The project is scheduled to be completed in 24 months. Technip Shaw is the Process Licensor of this package.
With this the total number of major projects secured by EPL both domestic and overseas has gone up to eight, taking the total order book to about USD 4.1 billion. EPL is executing significant hydrocarbon projects for major companies like IOCL, Jurong Aeromatics, Matix fertilizers to name a few.
Alwyn Bowden, President & CEO, Essar Projects said in a statement, "This order from BCPL further consolidates our position in the hydrocarbons sector in India."
The scope of work and obligations comprise of project management, residual process design, residual engineering of reactor regenerator, procurement & supply of all materials, stage wise inspection including third party inspection, transportation of all the equipment & materials to work site, erection, installation, pre-commissioning, commissioning, commissioning assistance, testing for performance guarantee in presence of licensor and owner representative etc.
On the occasion Amit Gupta- CEO, hydrocarbons business of Essar Projects said, "Essar Projects secured this order amidst extremely stiff competition and demonstrates our competence and capability in delivering complex projects to our key clients in the Hydrocarbons sector."
Bharat Petroleum Corporation Limited (BPCL) - Kochi is in the process of expanding the refinery facilities from 9.5 to 15.5 MMTPA as part of the Integrated Refinery Expansion Project ( IREP) for which Engineers India Limited ( EIL) has been appointed as Project Management Consultant (PMC) for the project.
EPL has won the contract in a consortium with GR Engineering of Mumbai for the engineering, procurement & construction (EPC) of the reactor regenerator package of 2.2 MMTPA fluid catalytic cracking unit (FCCU) at the Kochi refinery, which is set to expand to 15.5 MMTPA. The project is scheduled to be completed in 24 months. Technip Shaw is the Process Licensor of this package.
With this the total number of major projects secured by EPL both domestic and overseas has gone up to eight, taking the total order book to about USD 4.1 billion. EPL is executing significant hydrocarbon projects for major companies like IOCL, Jurong Aeromatics, Matix fertilizers to name a few.
Alwyn Bowden, President & CEO, Essar Projects said in a statement, "This order from BCPL further consolidates our position in the hydrocarbons sector in India."
The scope of work and obligations comprise of project management, residual process design, residual engineering of reactor regenerator, procurement & supply of all materials, stage wise inspection including third party inspection, transportation of all the equipment & materials to work site, erection, installation, pre-commissioning, commissioning, commissioning assistance, testing for performance guarantee in presence of licensor and owner representative etc.
On the occasion Amit Gupta- CEO, hydrocarbons business of Essar Projects said, "Essar Projects secured this order amidst extremely stiff competition and demonstrates our competence and capability in delivering complex projects to our key clients in the Hydrocarbons sector."
Bharat Petroleum Corporation Limited (BPCL) - Kochi is in the process of expanding the refinery facilities from 9.5 to 15.5 MMTPA as part of the Integrated Refinery Expansion Project ( IREP) for which Engineers India Limited ( EIL) has been appointed as Project Management Consultant (PMC) for the project.
Govt allows 100% FDI in telecom
Inflow norms for defence and single-brand retail also eased; Mayaram suggestions partially accepted
New Delhi: Amid concerns over a weakening rupee, dwindling capital inflows and a widening current account deficit, the country on Tuesday moved a step closer to overhauling its foreign direct investment (FDI) policy as it lifted caps for the telecom sector and asset reconstruction firms, besides tweaking norms for 13 sectors. The limit for defence production companies was also virtually raised to 100 per cent, subject to approval from the Cabinet Committee on Security (CCS).
The decision was taken at a meeting of senior Cabinet ministers with Prime Minister Manmohan Singh.
Also decided at the meeting was that FDI cap for private insurers would be raised to 49 per cent but that would need Parliament’s approval. The FDI limit for credit information firms was raised from 49 per cent to 74 per cent — all of it may come through the automatic route, against the requirement for clearance from the Foreign Investment Promotion Board (FIPB) at present. (EASING FDI INFLOWS)
Besides these, the ministers eased FDI procedures for seven other sectors. But they stopped a little short of accepting all recommendations of the Arvind Mayaram committee, including those to raise FDI cap for news & media (current affairs) to 49 per cent from 26 per cent.
After the meeting, Commerce Minister Anand Sharma said a Cabinet note on Tuesday’s recommendations would soon be prepared. He, however, clarified that these proposals would not be taken up at the Cabinet meeting on Wednesday.
He also assured investors that their concerns over multi-brand retail would be allayed and clarifications would soon be issued. He added that his ministry’s concern over acquisition of Indian pharma companies by foreign ones would be discussed separately.
Though FDI in telecom services will be raised to 100 per cent, only up to 49 per cent could come via the automatic route. Beyond that, permission of FIPB will have to be sought.
So far as FDI in defence is concerned, it has been left to CSS to decide which FDI proposals will bring in state-of-the-art technology into the country. That way, even the proposals for foreign investment beyond 26 per cent could be considered on a case-by-case basis.
In single-brand retail, though there is no FDI limit at present, the investment has come only after FIPB clearance. This has been eased to allow up to 49 per cent investment through the automatic route. Similarly, up to 49 per cent FDI is currently allowed in petroleum and natural gas refinery, but with FIPB approval.
This, too, has been changed to automatic route, without any modification in cap. The caps on FDI in commodity exchanges, power exchanges, stock exchanges, depositories and clearing houses have been retained at 49 per cent (26 per cent FDI and 23 per cent foreign institutional investments). But procedures of approval have been eased and investments can now come through the automatic route.
The meeting also decided to remove a clause that tea and other plantation companies — in which 100 per cent FDI is allowed — have to divest 26 per cent equity in favour of Indians within five years. For this sector, up to 49 per cent FDI could come via automatic route, while that below this threshold will have to be vetted by FIPB. Courier services already enjoy 100 per cent FDI but now full investment could come via automatic route.
New Delhi: Amid concerns over a weakening rupee, dwindling capital inflows and a widening current account deficit, the country on Tuesday moved a step closer to overhauling its foreign direct investment (FDI) policy as it lifted caps for the telecom sector and asset reconstruction firms, besides tweaking norms for 13 sectors. The limit for defence production companies was also virtually raised to 100 per cent, subject to approval from the Cabinet Committee on Security (CCS).
The decision was taken at a meeting of senior Cabinet ministers with Prime Minister Manmohan Singh.
Also decided at the meeting was that FDI cap for private insurers would be raised to 49 per cent but that would need Parliament’s approval. The FDI limit for credit information firms was raised from 49 per cent to 74 per cent — all of it may come through the automatic route, against the requirement for clearance from the Foreign Investment Promotion Board (FIPB) at present. (EASING FDI INFLOWS)
Besides these, the ministers eased FDI procedures for seven other sectors. But they stopped a little short of accepting all recommendations of the Arvind Mayaram committee, including those to raise FDI cap for news & media (current affairs) to 49 per cent from 26 per cent.
After the meeting, Commerce Minister Anand Sharma said a Cabinet note on Tuesday’s recommendations would soon be prepared. He, however, clarified that these proposals would not be taken up at the Cabinet meeting on Wednesday.
He also assured investors that their concerns over multi-brand retail would be allayed and clarifications would soon be issued. He added that his ministry’s concern over acquisition of Indian pharma companies by foreign ones would be discussed separately.
Though FDI in telecom services will be raised to 100 per cent, only up to 49 per cent could come via the automatic route. Beyond that, permission of FIPB will have to be sought.
So far as FDI in defence is concerned, it has been left to CSS to decide which FDI proposals will bring in state-of-the-art technology into the country. That way, even the proposals for foreign investment beyond 26 per cent could be considered on a case-by-case basis.
In single-brand retail, though there is no FDI limit at present, the investment has come only after FIPB clearance. This has been eased to allow up to 49 per cent investment through the automatic route. Similarly, up to 49 per cent FDI is currently allowed in petroleum and natural gas refinery, but with FIPB approval.
This, too, has been changed to automatic route, without any modification in cap. The caps on FDI in commodity exchanges, power exchanges, stock exchanges, depositories and clearing houses have been retained at 49 per cent (26 per cent FDI and 23 per cent foreign institutional investments). But procedures of approval have been eased and investments can now come through the automatic route.
The meeting also decided to remove a clause that tea and other plantation companies — in which 100 per cent FDI is allowed — have to divest 26 per cent equity in favour of Indians within five years. For this sector, up to 49 per cent FDI could come via automatic route, while that below this threshold will have to be vetted by FIPB. Courier services already enjoy 100 per cent FDI but now full investment could come via automatic route.
Monday, July 15, 2013
Dabur India, Hindustan Unilever's tech route to rural markets
New Delhi: With urban consumers cutting back on their spending spree, fast-moving consumer goods companies have redoubled efforts to tap into rural India in 2012-13. In their latest annual reports, Dabur India and Hindustan Unilever (HUL) have both highlighted why the rural markets are so critical and what they are doing to better their rural sales.
Going technical
HUL’s decade-old Project Shakti received a technology boost in 2012. About 40,000 Shakti Ammas were equipped with a basic smartphone. These smartphones had specifically designed software enabled them to take and bill orders, manage inventory and receive updates on promotional schemes run by the company. This improved their efficiency The Shakti workforce rose to 48,000 in 2012, up by around 3,000 from the year before. Project Shakti equips women with the basic entrepreneurial skills and facilities needed to set up and market FMCG products.
If HUL depended on its Shakti Ammas to connect with consumers, Dabur India embraced the idea of getting rural folk to sample products and experience the benefits for themselves. The idea was to get word-of-mouth advertising of product benefits.
The company made the most of fairs and melas around the harvest seasons when purchasing power is high. It also conducted school health camps to boost its toothpaste and chyawanprash portfolio and beauty pageants, to showcase its ayurvedic beauty products.
That’s not to say the company ignored the power of the mobile phone. Dabur’s rural sales force used mobile phones to report sales. Phones were equipped with maps showing the demographics and market potential of each locality, to improve rural coverage. Over two years, Dabur’s rural strategies saw it doubling the villages under its coverage to 30,091.
Distribution
For any FMCG company, the efficiency and reach of its distribution systems is the most important tool to improve profits and drive sales. In this regard, HUL has a giant coverage reaching out to over 2 million outlets. To improve connect and with its distributors , HUL set up a helpline for its distributors and retailers to address problems or questions quickly.
Dabur, meanwhile, armed more than half of its urban sales force with hand-held devices to generate data, which is then used to decipher buying patterns and customise selling strategies. IT has also been used to provide information to, and generate feedback from doctors on Dabur’s formulations and ayurvedic products.
Going technical
HUL’s decade-old Project Shakti received a technology boost in 2012. About 40,000 Shakti Ammas were equipped with a basic smartphone. These smartphones had specifically designed software enabled them to take and bill orders, manage inventory and receive updates on promotional schemes run by the company. This improved their efficiency The Shakti workforce rose to 48,000 in 2012, up by around 3,000 from the year before. Project Shakti equips women with the basic entrepreneurial skills and facilities needed to set up and market FMCG products.
If HUL depended on its Shakti Ammas to connect with consumers, Dabur India embraced the idea of getting rural folk to sample products and experience the benefits for themselves. The idea was to get word-of-mouth advertising of product benefits.
The company made the most of fairs and melas around the harvest seasons when purchasing power is high. It also conducted school health camps to boost its toothpaste and chyawanprash portfolio and beauty pageants, to showcase its ayurvedic beauty products.
That’s not to say the company ignored the power of the mobile phone. Dabur’s rural sales force used mobile phones to report sales. Phones were equipped with maps showing the demographics and market potential of each locality, to improve rural coverage. Over two years, Dabur’s rural strategies saw it doubling the villages under its coverage to 30,091.
Distribution
For any FMCG company, the efficiency and reach of its distribution systems is the most important tool to improve profits and drive sales. In this regard, HUL has a giant coverage reaching out to over 2 million outlets. To improve connect and with its distributors , HUL set up a helpline for its distributors and retailers to address problems or questions quickly.
Dabur, meanwhile, armed more than half of its urban sales force with hand-held devices to generate data, which is then used to decipher buying patterns and customise selling strategies. IT has also been used to provide information to, and generate feedback from doctors on Dabur’s formulations and ayurvedic products.
Subscribe to:
Posts (Atom)