New Delhi: The proposal to set up the port, with an initial capacity of six berths in Prakasam district, has been already placed before the Union Cabinet — the initial investment will be of Rs 8,000 crore.
While the State Government will hold about 11 per cent stake in the project, the rest will be picked by the other PSUs such as NMDC and steel companies, who are the major users of the port facilities.
Once commissioned, the State will have two major ports, the other being the country’s premier Visakhapatnam port, and 14 non-major ports.
Having occupied the top slot amongst all major ports in terms of throughput for six consecutive years, it slipped to the second position, after Kandla, in the last two years.
However, the port, which currently handles about 70 million tonnes of cargo annually, is expanding its capacity, after which it could regain the lost position.
Rs 3,500-cr expansion
The Rs 3,500-crore expansion, which includes setting up three coal berths, a fertiliser berth, a liquid cargo berth and a general cargo berth, are all scheduled for completion within a year.
It is being implemented through the (public-private partnership) PPP route, with private sector port players such as Essar, involved in the capacity building exercise.
The three non-major ports in the State, Gangavaram, Kakinada and Krishnapatnam ports, together handle about 40 million tonnes.
The State Government has prepared a master plan that envisages increasing the capacity of its non-major ports to handle 175 million tonnes in 2020.
Immediate on the anvil are two ports at Machilipatnam and Nizampatnam, with 20 million tonnes and 15 million tonnes capacity respectively.
Gangavaram port is expanding its capacity from 15 million tonnes to 45 million tonnes by adding three multi-purpose berths and a coal handling terminal, which may be commissioned by next year.
Already the port has made waves in the industry due to the natural draft that it has, allowing bigger ships to anchor.
A recently study by trade body Assocham has pointed out that Andhra Pradesh commanded a lion’s share of over 46 per cent in the total basket of new port projects being implemented across Indian maritime States.
The State is currently implementing three projects worth Rs 20,000 crore in the ports sector under the PPP model as on April 2013, according to a study.
However, the study revealed that Andhra Pradesh comes fourth in terms of completion of port-related projects in the Eleventh Plan period — it completed three projects worth Rs 1,425 crore, with a share of 5.8 per cent in the completed projects pie.
Indeed, Andhra Pradesh is well on its way to becoming a major logistics hub not only in the realm of sea transportation but also air cargo.
Air Cargo hub
The Rajiv Gandhi International airport, located at the centre of the country’s production hub with a strong regional connectivity, is gaining ground as India’s first full-fledged air cargo hub.
With more than 20 important domestic and other South Asian cities located less then two hours of flying time away and South-East Asian cities such as Singapore, Kuala Lumpur and Bangkok and Westa Asia cities four hours away, the airport is gearing up to cash in on this natural advantage.
Hyderabad airport currently handles over one lakh tonnes a year, which can be modularly scaled up to 1.5 lakh tonnes.
Lufthansa has already nominated the airport as its pharma hub and Cathay Pacific recently added Hyderabad with a twice-a-week Boeing 747 freighter service. Also Thai Airways and Blue Dart are offering main-deck through their Boeing 747-400F MD-11F and Boeing 757F freighters.
More airlines
In addition, about 18 scheduled airlines, including 13 international, have cargo bases here, offering belly spaces, ranging from 2-3 tonnes in a 737 type aircraft and 20-25 tonnes in the larger 747 type aircraft.
The airport has a 33,000-tonne capacity dedicated temperature-controlled pharma zone, a 20-acre Free Trade Zone with warehousing and distribution and the integrated terminal operated by GMR and Menzies Aviation of the UK.
New initiatives include cool container links for pharma products, general and temperature-controlled warehouses within the cargo village, promotion of road feeder services and 24x7 customs clearance of cargoes.
Success in my Habit
Saturday, August 31, 2013
Reliance Ind, partners get nod to invest $4 billion in D-6 block
New Delhi: Reliance Industries and its partners in the KG-D6 block — BP Plc and Niko Resources — have received Government approval to invest $4 billion in the R-Series gas-field in the block.
R-series is a cluster of four discoveries in the block, of which, D-34 has been declared commercially viable. The block management committee, at its meeting here on Thursday, approved the investments for D-34, an official privy to the development said.
The earlier investment of $3.18 billion has been revised to $4 billion as input costs have gone up, the official told Business Line. This discovery is estimated to hold an in-place reserve of 2.2 trillion cubic feet of gas, while recoverable reserves are estimated at 1.191 trillion cubic feet of gas.
Though the rate of production is not yet known, indications are that it could be close to the combined current production from the block — 13 mmscmd (million standard cubic metre a day) of gas. The partners plan to quickly bring this discovery to production to help reverse the decline in output.
Due to a technical snag, the largest producing fields in the block (D-1 and D-3) reported a significant decline in output after hitting a peak of 61 mmscmd in 2010. RIL has so far made 19 gas discoveries and one oil find in the KG-D6 block. Of these, D-1 and D-3, the largest gas-fields, were brought to production in 2009 while the MA oilfield began pumping crude in September 2008.
On August 23, the Minister of State for Petroleum and Natural Gas, Panabaaka Lakshmi, informed the Lok Sabha that to increase output from the D-6 block, the contractor (RIL) has been asked to drill, complete and connect more wells and undertake appropriate remedial measures to revive the sick wells in the D-1, D-3 and MA fields.
The Minister also said the revised development plan for the MA field and the optimised field development plan of another four discoveries — D-2, D-6, D-19 and D-22 — have been approved.
The gas production from the D-1 and D-3 fields has been much lower than the rates approved in the field development plan, even as facilities for producing 80 mmscmd have been set up, the Minister said.
R-series is a cluster of four discoveries in the block, of which, D-34 has been declared commercially viable. The block management committee, at its meeting here on Thursday, approved the investments for D-34, an official privy to the development said.
The earlier investment of $3.18 billion has been revised to $4 billion as input costs have gone up, the official told Business Line. This discovery is estimated to hold an in-place reserve of 2.2 trillion cubic feet of gas, while recoverable reserves are estimated at 1.191 trillion cubic feet of gas.
Though the rate of production is not yet known, indications are that it could be close to the combined current production from the block — 13 mmscmd (million standard cubic metre a day) of gas. The partners plan to quickly bring this discovery to production to help reverse the decline in output.
Due to a technical snag, the largest producing fields in the block (D-1 and D-3) reported a significant decline in output after hitting a peak of 61 mmscmd in 2010. RIL has so far made 19 gas discoveries and one oil find in the KG-D6 block. Of these, D-1 and D-3, the largest gas-fields, were brought to production in 2009 while the MA oilfield began pumping crude in September 2008.
On August 23, the Minister of State for Petroleum and Natural Gas, Panabaaka Lakshmi, informed the Lok Sabha that to increase output from the D-6 block, the contractor (RIL) has been asked to drill, complete and connect more wells and undertake appropriate remedial measures to revive the sick wells in the D-1, D-3 and MA fields.
The Minister also said the revised development plan for the MA field and the optimised field development plan of another four discoveries — D-2, D-6, D-19 and D-22 — have been approved.
The gas production from the D-1 and D-3 fields has been much lower than the rates approved in the field development plan, even as facilities for producing 80 mmscmd have been set up, the Minister said.
Aegis joint venture firm wins $50-m outsourcing deal
Mumbai: Contact Centre Company (CCC), a joint venture between India’s Aegis and Saudi Telecom Company (STC), has won an outsourcing contract from STC. The company did not disclose the size of the contract, which is to be executed under various phases.
Aegis is Essar Group’s BPO. A spokesperson declined to comment on the contract value. Industry sources have placed the valued at $50 million (about Rs 330 crore).
In a statement, Aegis said CCC would provide recruitment and human resource process outsourcing services for more than 1,000 employees across various STC business units.
CCC, a Saudi Arabia-based company, will also outsource recruitment, core human resource administration, learning services (covering content sourcing) and development for STC. The scope of the contract also includes payroll administration and management.
“This contract represents a new milestone in Aegis–STC collaboration,” Aegis Global Chief Executive Officer Sandip Sen said. At present, CCC employs more than 1,300 personnel across its two locations in Riyadh and Jeddah. It had also won six external clients across media, government, banking, financial services and insurance, healthcare and travel and hospitality verticals.
Aegis was planning to expand operations in Asian geographies, including newer markets such as China and Africa.
The Mumbai-based firm, which had put its earlier stake-sale plans on ice, is also looking at an initial listing by next year.
Aegis is Essar Group’s BPO. A spokesperson declined to comment on the contract value. Industry sources have placed the valued at $50 million (about Rs 330 crore).
In a statement, Aegis said CCC would provide recruitment and human resource process outsourcing services for more than 1,000 employees across various STC business units.
CCC, a Saudi Arabia-based company, will also outsource recruitment, core human resource administration, learning services (covering content sourcing) and development for STC. The scope of the contract also includes payroll administration and management.
“This contract represents a new milestone in Aegis–STC collaboration,” Aegis Global Chief Executive Officer Sandip Sen said. At present, CCC employs more than 1,300 personnel across its two locations in Riyadh and Jeddah. It had also won six external clients across media, government, banking, financial services and insurance, healthcare and travel and hospitality verticals.
Aegis was planning to expand operations in Asian geographies, including newer markets such as China and Africa.
The Mumbai-based firm, which had put its earlier stake-sale plans on ice, is also looking at an initial listing by next year.
Indian pharmaceutical companies bag 40 per cent of ANDAs approved by USFDA: Report
New Delhi: According to a report by CentrumBSE -4.79 % Broking, Indian pharma companies bagged around 40% of all Abbreviated New Drug Approvals (ANDA) approvals from the US Food and Drug Administration (FDA) between January and July 2013. ANDA approval is a pre-requisite for marketing generic products in the US. Among the Indian companies, Sun PharmaBSE 3.03 % and Aurobindo PharmaBSE 1.35 % emerged the winners with 21 and 20 ANDA approvals respectively.
This augurs well for the Indian pharma industry, which is poised to benefit from the approvals coming at a time when rupee has faced its steepest depreciation against the US dollar. The US performance of most export-oriented pharma companies has been quite strong in the last two quarters. In the current scenario of weakening rupee, the export-oriented sector is likely to perform better than most other sectors - thanks to better realisations from the US market. Companies like Sun Pharma, LupinBSE 0.30 %, Ranbaxy and Dr Reddy's Labs earn majority of their revenues from the US.
However, some companies like CiplaBSE 3.86 % have warned that the benefit may not last long since the companies would be expected to give bigger discounts on their generics to remain competitive.
This augurs well for the Indian pharma industry, which is poised to benefit from the approvals coming at a time when rupee has faced its steepest depreciation against the US dollar. The US performance of most export-oriented pharma companies has been quite strong in the last two quarters. In the current scenario of weakening rupee, the export-oriented sector is likely to perform better than most other sectors - thanks to better realisations from the US market. Companies like Sun Pharma, LupinBSE 0.30 %, Ranbaxy and Dr Reddy's Labs earn majority of their revenues from the US.
However, some companies like CiplaBSE 3.86 % have warned that the benefit may not last long since the companies would be expected to give bigger discounts on their generics to remain competitive.
IT spending for banks, securities firms to grow 13%
Mumbai: Indian banking and securities companies will spend about Rs 41,700 crore on IT products and services in 2013, 13 per cent over 2012 revenues of Rs 36,900 crore.
This includes spending by financial institutions on internal IT services (including personnel), IT services, software, data centre technologies, devices and telecom services, according to a study by research and analyst firm Gartner.
IT services will be the largest segment in the overall spending category at Rs 13,100 crore in 2013.
This is due to a strong focus on the financial services sector by IT services providers, which is growing stronger than other segments at nearly 18 per cent compared with 2012, it said.
Expansion
“The focus on expansion and increasing market share remains a top priority for banks in India. As in other emerging markets, the front office gets preference over the back office in major investments,” said Vittorio D’Orazio, research director at Gartner.
Software next
Software is the second fastest growth segment in spending on pace to increase 17.1 per cent, followed by internal services (that includes IT personnel) at 15.7 per cent.
In the software segment, desktop software and enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM) will exceed the 20 per cent growth landmark with 22.1 per cent and 21.7 per cent, respectively.
This includes spending by financial institutions on internal IT services (including personnel), IT services, software, data centre technologies, devices and telecom services, according to a study by research and analyst firm Gartner.
IT services will be the largest segment in the overall spending category at Rs 13,100 crore in 2013.
This is due to a strong focus on the financial services sector by IT services providers, which is growing stronger than other segments at nearly 18 per cent compared with 2012, it said.
Expansion
“The focus on expansion and increasing market share remains a top priority for banks in India. As in other emerging markets, the front office gets preference over the back office in major investments,” said Vittorio D’Orazio, research director at Gartner.
Software next
Software is the second fastest growth segment in spending on pace to increase 17.1 per cent, followed by internal services (that includes IT personnel) at 15.7 per cent.
In the software segment, desktop software and enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM) will exceed the 20 per cent growth landmark with 22.1 per cent and 21.7 per cent, respectively.
BHEL, PowerGrid among 5 PSUs setting up mega solar power project
New Delhi: Five central public sector undertakings (CPSUs) intend to set up a solar power project with a total capacity of 4,000 megawatts.
BHEL, PowerGrid Corporation, Satluj Jal Vidyut Nigam, Solar Energy Corporation, and Hindustan Salts will set up the project on land belonging to Hindustan Salt at Sambhar in Rajasthan.
The operation and management contract for this project, to be commissioned in three years, is to be awarded to another CPSU, Rajasthan Electronics and Instruments.
Investment
“The effort is to set up 1,000 mw capacity initially with an investment of Rs 7,500 crore. Then additional capacity of 3,000 MW will be developed in six phases of 500 MW each,” a person familiar with the development told Business Line, adding that the modalities were being worked out.
The project will be a joint initiative of the Heavy Industries Ministry and the Ministry of New and Renewal Energy and approval to set up a special purpose vehicle will be sought from the Union Cabinet.
A senior Government official said this project would benefit the companies concerned in many ways, apart from financial gain on the basis of equity participation.
For example, Hindustan Salt has a vast area of land in Rajasthan. Over 20,000 acres can now be used for the project, which will give the company additional financial benefits, the official added.
Similarly, power generation equipment manufacturer BHEL, which hopes to expand its manufacturing capacity for photovoltaic module and cells, will also benefit from such a project.
Also, the National Action Plan on Climate Change has targeted 15 per cent of electricity generation by renewables (biomass, small hydro power and wind power apart from solar power) by 2020.
Desert an advantage
The official said two key resources were required for a solar power project. One, lots of sunlight and, two, huge land area, and Rajasthan has both.
According to the Bureau of Investment Promotion of Rajasthan, the State is uniquely placed to tap sunlight with 300-330 clear sunny days and average daily solar incidence of 5-7 kilowatt-hours per square metre per day (kWh/m2).
The total desert area in the State is over two lakh sq km. Also, 60 per cent of the land in the State is arid and semi-arid.
The Government aims to augment solar power capacity to 20,000 MW by 2022 from the current capacity of over 1,600 MW.
BHEL, PowerGrid Corporation, Satluj Jal Vidyut Nigam, Solar Energy Corporation, and Hindustan Salts will set up the project on land belonging to Hindustan Salt at Sambhar in Rajasthan.
The operation and management contract for this project, to be commissioned in three years, is to be awarded to another CPSU, Rajasthan Electronics and Instruments.
Investment
“The effort is to set up 1,000 mw capacity initially with an investment of Rs 7,500 crore. Then additional capacity of 3,000 MW will be developed in six phases of 500 MW each,” a person familiar with the development told Business Line, adding that the modalities were being worked out.
The project will be a joint initiative of the Heavy Industries Ministry and the Ministry of New and Renewal Energy and approval to set up a special purpose vehicle will be sought from the Union Cabinet.
A senior Government official said this project would benefit the companies concerned in many ways, apart from financial gain on the basis of equity participation.
For example, Hindustan Salt has a vast area of land in Rajasthan. Over 20,000 acres can now be used for the project, which will give the company additional financial benefits, the official added.
Similarly, power generation equipment manufacturer BHEL, which hopes to expand its manufacturing capacity for photovoltaic module and cells, will also benefit from such a project.
Also, the National Action Plan on Climate Change has targeted 15 per cent of electricity generation by renewables (biomass, small hydro power and wind power apart from solar power) by 2020.
Desert an advantage
The official said two key resources were required for a solar power project. One, lots of sunlight and, two, huge land area, and Rajasthan has both.
According to the Bureau of Investment Promotion of Rajasthan, the State is uniquely placed to tap sunlight with 300-330 clear sunny days and average daily solar incidence of 5-7 kilowatt-hours per square metre per day (kWh/m2).
The total desert area in the State is over two lakh sq km. Also, 60 per cent of the land in the State is arid and semi-arid.
The Government aims to augment solar power capacity to 20,000 MW by 2022 from the current capacity of over 1,600 MW.
SIDBI, Franchise India tie up to fund franchisee business
New Delhi: Small Industries Development Bank of India (SIDBI) has joined hands with Franchise India to provide financial support to emerging and established franchisors in India.
The tie-up is expected to enable SIDBI create a sustainable and robust financing model for the franchise industry, N.K.Maini, Deputy Managing Director, SIDBI, told Business Line here.
The SIDBI-Franchise India programme has been instituted as a funding initiative to make the franchising model of business less daunting for aspiring entrepreneurs.
Currently, financing is very difficult as the franchisees are often not able to provide any collateral, it was pointed out.
“We are now looking to devise a product that is based not essentially on the collateral but on the cash flows,” Maini said, adding that efforts were only in the pilot stage and the product could be firmed up in the next six months.
Maini said that franchise industry in India is expected to grow by leaps and bounds.
From 1.4 per cent of GDP at present, the franchise industry is likely to account for 4 per cent of GDP by 2017, says a recent report by KPMG.
The tie-up is expected to enable SIDBI create a sustainable and robust financing model for the franchise industry, N.K.Maini, Deputy Managing Director, SIDBI, told Business Line here.
The SIDBI-Franchise India programme has been instituted as a funding initiative to make the franchising model of business less daunting for aspiring entrepreneurs.
Currently, financing is very difficult as the franchisees are often not able to provide any collateral, it was pointed out.
“We are now looking to devise a product that is based not essentially on the collateral but on the cash flows,” Maini said, adding that efforts were only in the pilot stage and the product could be firmed up in the next six months.
Maini said that franchise industry in India is expected to grow by leaps and bounds.
From 1.4 per cent of GDP at present, the franchise industry is likely to account for 4 per cent of GDP by 2017, says a recent report by KPMG.
Government sets a target of 259 million tonnes of foodgrains of production in 2013-14
Kolkata: Government has set a target of 259 million tonnes of foodgrains production in the year 2013-14. Government of India is implementing various crop development programmes/schemes through State Governments for achieving production targets of various crops.
Programmes like Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Integrated Scheme on Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), Bringing Green Revolution to Eastern India (BGREI), Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP), Nutri-Farms Scheme, Special Programme on Oil Palm Area Expansion (OPAE), Crop Diversification Programme, etc. are being implemented for increasing production and productivity of different field crops.
Under these programmes, various activities like demonstration on high yielding varieties/hybrids, distribution of seed of improved varieties/hybrids, need based plant protection and soil amendments, resource conservation techniques/ energy management, efficient water application tools, and cropping system based trainings, are being taken-up to achieve the production target.
This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.
Programmes like Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Integrated Scheme on Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), Bringing Green Revolution to Eastern India (BGREI), Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP), Nutri-Farms Scheme, Special Programme on Oil Palm Area Expansion (OPAE), Crop Diversification Programme, etc. are being implemented for increasing production and productivity of different field crops.
Under these programmes, various activities like demonstration on high yielding varieties/hybrids, distribution of seed of improved varieties/hybrids, need based plant protection and soil amendments, resource conservation techniques/ energy management, efficient water application tools, and cropping system based trainings, are being taken-up to achieve the production target.
This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.
FM announces Rs 1.83 lakh crore boost for Infrastructure
New Delhi: Finance Minister P Chidambaram announced the Cabinet Committee on Investments (CCI) has given its approval for speedy execution of 36 infrastructure projects entailing investments of Rs 1.83 lakh crore. The approval, aimed at bolstering investor confidence, covers 18 projects in power sector alone.
'The message we are sending through the approval is that we are keen to get the investment cycle restarted. The cycle has started and we are pushing it further,' Chidambaram said. The development comes within a few days of the FM assuring banks and foreign institutions of the government’s intent to expedite clearance for large projects.
Power sector projects cleared by CCI involve investment of Rs 88,773 crore. These include Reliance Power’s 4,000 Mw Sasan Ultra Mega Power project (UMPP) which was stuck up owing to forest clearance and Essar Power’s 1,800 Mw Jharkhand power project.
The FM said banks have already disbursed Rs 30,000 crore for power sector projects and, with clearances in place, more funds for these projects are expected to flow in. He also said Fuel Supply Agreements (FSAs) will be put in place by 6 September for projects stuck for want of coal supply.
Apart from power projects, the CCI has also cleared nine projects with an outlay of Rs 14,084 crore. Additional nine projects reviewed by CCI involve an investment of over Rs 85,000 crore, he informed.
He added approvals have been granted for L&T’s Metro Rail project in Hyderabad. The company is currently obtaining clearance for quarrying for the Rs 16,375 crore project. In road sector, GMR Group’s Kishangarh-Udaipur-Ahmedabad project will be brought to the Cabinet by 15 September.
Other projects which have received the go-ahead from CCI include Hindalco Industries’ manufacturing plant in Odisha which is awaiting Special Economic Zone (SEZ) clearance and Jaiprakash Power’s MP Power plant which is stuck owing to compensatory forestation issues.
'The message we are sending through the approval is that we are keen to get the investment cycle restarted. The cycle has started and we are pushing it further,' Chidambaram said. The development comes within a few days of the FM assuring banks and foreign institutions of the government’s intent to expedite clearance for large projects.
Power sector projects cleared by CCI involve investment of Rs 88,773 crore. These include Reliance Power’s 4,000 Mw Sasan Ultra Mega Power project (UMPP) which was stuck up owing to forest clearance and Essar Power’s 1,800 Mw Jharkhand power project.
The FM said banks have already disbursed Rs 30,000 crore for power sector projects and, with clearances in place, more funds for these projects are expected to flow in. He also said Fuel Supply Agreements (FSAs) will be put in place by 6 September for projects stuck for want of coal supply.
Apart from power projects, the CCI has also cleared nine projects with an outlay of Rs 14,084 crore. Additional nine projects reviewed by CCI involve an investment of over Rs 85,000 crore, he informed.
He added approvals have been granted for L&T’s Metro Rail project in Hyderabad. The company is currently obtaining clearance for quarrying for the Rs 16,375 crore project. In road sector, GMR Group’s Kishangarh-Udaipur-Ahmedabad project will be brought to the Cabinet by 15 September.
Other projects which have received the go-ahead from CCI include Hindalco Industries’ manufacturing plant in Odisha which is awaiting Special Economic Zone (SEZ) clearance and Jaiprakash Power’s MP Power plant which is stuck owing to compensatory forestation issues.
RBI opens window for forex purchase by oil firms
Mumbai: As part of its steps to stabilise the rupee, the Reserve Bank of India has decided to open a foreign exchange swap window to meet the daily dollar requirements of the three public sector oil marketing companies (OMCs).
These three OMCs are the biggest buyers of dollars, requiring $8-8.5 billion every month, for the import of an average of 7.5 million tonnes of crude oil.
Under the facility, RBI will undertake to sell/buy the dollar-rupee forex swaps for a fixed tenure with the companies — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — through a designated bank, went a late evening statement from the central bank. The facility is with immediate effect and is to remain in place until further notice, it said.
Treasury executives and forex dealers said the move would reduce immediate demand pressures for dollar, reduce volatility in the currency market and help restrict the sharp slide in the rupee against the dollar.
According to analysts, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.
However, there is a catch in the arrangement. The OMCs would have to return the dollars they would source from RBI at a later date. The assumption is that dollar flows will improve, helping the OMCs to buy the US currency and return the money to RBI.
A senior State Bank of India official said the RBI step would limit the demand for raising dollars from the market and should take off pressure, since demand from the OMCs has been substantial.
Madan Sabanavis, chief economist, CARE Ratings, said this was a fire-fighting measure on the part of RBI. “It will partly address the panic driving the fall in the rupee value in the last few days,” he said.
S Srinivasaraghavan, head of treasury, Dhanlaxmi Bank, said this was a sentiment-boosting measure and would help the rupee when the market opened on Thursday.
India’s oil import in July was valued at $12.7 billion, about eight per cent lower than the $13.8 bn in the corresponding period a year before. During April-July, oil imports were valued at $54.6 bn, which was 2.65 per cent higher than the $53.2 bn in the corresponding period last year.
These three OMCs are the biggest buyers of dollars, requiring $8-8.5 billion every month, for the import of an average of 7.5 million tonnes of crude oil.
Under the facility, RBI will undertake to sell/buy the dollar-rupee forex swaps for a fixed tenure with the companies — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — through a designated bank, went a late evening statement from the central bank. The facility is with immediate effect and is to remain in place until further notice, it said.
Treasury executives and forex dealers said the move would reduce immediate demand pressures for dollar, reduce volatility in the currency market and help restrict the sharp slide in the rupee against the dollar.
According to analysts, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.
However, there is a catch in the arrangement. The OMCs would have to return the dollars they would source from RBI at a later date. The assumption is that dollar flows will improve, helping the OMCs to buy the US currency and return the money to RBI.
A senior State Bank of India official said the RBI step would limit the demand for raising dollars from the market and should take off pressure, since demand from the OMCs has been substantial.
Madan Sabanavis, chief economist, CARE Ratings, said this was a fire-fighting measure on the part of RBI. “It will partly address the panic driving the fall in the rupee value in the last few days,” he said.
S Srinivasaraghavan, head of treasury, Dhanlaxmi Bank, said this was a sentiment-boosting measure and would help the rupee when the market opened on Thursday.
India’s oil import in July was valued at $12.7 billion, about eight per cent lower than the $13.8 bn in the corresponding period a year before. During April-July, oil imports were valued at $54.6 bn, which was 2.65 per cent higher than the $53.2 bn in the corresponding period last year.
Wednesday, August 28, 2013
Asus opens new centre
Chennai: Asus India has opened its second exclusive store in the city.
The store will feature entire range of ultrabooks, notebooks, netbooks, tablet personal computers and phablets - a smartphone form factor describing devices with a screen between 5 and 6.9 inches in size.
The store will have a range of entertainment, classic, versatile and elite series of products of Asus, a $12-billion Taiwanese computer hardware and electronics manufacturer, says a company press release.
The store will feature entire range of ultrabooks, notebooks, netbooks, tablet personal computers and phablets - a smartphone form factor describing devices with a screen between 5 and 6.9 inches in size.
The store will have a range of entertainment, classic, versatile and elite series of products of Asus, a $12-billion Taiwanese computer hardware and electronics manufacturer, says a company press release.
OVL to buy Anadarko’s 10% stake in Mozambique block for $2.6 billion
Mumbai/ New Delhi: ONGC Videsh Ltd (OVL), the foreign arm of state-run ONGC, on Monday announced signing of a definitive agreement with US firm Anadarko to buy 10 per cent of its stake in a gasfield offshore Mozambique for $2.64 billion in cash.
The latest acquisition, which will take the combined holding of OVL and Oil India in the field to 20 per cent (worth $5.11 billion), will increase OVL’s reserve and resource base significantly. This is expected to boost the firm’s production — eight million tonnes of oil & oil equivalent gas at present — and help it meet its long-term targets of 20 mt by FY18 and 60 mt by FY30. Thanks to its recent discoveries in the Rovuma offshore field, the company is touted to become one of the world’s largest liquefied natural gas (LNG) -producing hubs by 2018. The field is said to be the largest gas discovery off Africa’s east coast with estimated recoverable reserves of 35-65 trillion cubic feet (tcf).
ALSO READ: ONGC dips ahead of Anadarko stake buy
OVL Managing Director D K Sarraf told Business Standard the deal was a strategic investment for the country, with Indian companies together holding a 30 per cent stake in the offshore block. Bharat Petroleum Corp Ltd (BPCL) holds a 10 per cent stake. “The field is not far from India, so the LNG transportation cost will be very cheap. We will start getting gas from 2018 which will help revive gas-based downstream investment in the country.”
Though the OVL deal was sealed after prolonged discussions, at a valuation of $5.11 billion, the 20 per cent stake is being seen as a more prudent investment than BP’s acquisition of a 30 per cent stake in Reliance Industries Ltd’s (RIL’s) 21 Indian blocks for $7.2 billion. Of the 21 blocks, 15 were surrendered due to poor hydrocarbon reserves.
ALSO READ: ONGC, RIL, BG set to invest Rs 950 cr in Panna oil and gas field
Sarraf and bankers said the valuation of the OVL deal was very competitive. On a comparison with RIL, Sarraf said: “I would not like to compare it with BP-RIL. Every exploration & production asset has its own risk and reward perception. Since the Mozambique field is fully discovered, there is no risk.”
In February 2011, when BP had bought a stake in RIL’s blocks for $7.2 billion, besides further performance-related payments of up to $1.8 billion, analysts had valued the deep-water assets between $24 billion and $30 billion. BP is said to have paid $7.2 billion, including $2.5 billion towards goodwill; $4.5 billion for the K-G block and another $200-300 million for the rest of the blocks.
Given that BP has already taken a substantial write-off on the assets and the RIL-BP consortium has relinquished a majority of the blocks, analysts say BP did overpay. In a July 2013 presentation, Bob Dudley, BP’s group chief executive, said: “We are working with RIL to rigorously manage KG-D6 base production to maximise recovery and increase production. We are also planning development of around three tcf of existing discoveries.”
ALSO READ: ONGC's stake sale talks with ConocoPhillips, Shell hit defence ministry roadblock
Production from the KG-D6 asset has seen a significant downgrade — from 10 tcf to around 5.5 tcf. “While BP farmed into an explored block with reserve certification in place, OVL neither has a producing asset nor reserve certification. The LNG plans have also not happened. So, by that account, it can be said OVL has paid a premium. Besides, no one knows the kind of returns OVL will get from this asset, as production will begin five years down the line,” said a senior research analyst at a domestic brokerage.
Industry experts said, while oil majors like Royal Dutch Shell and Chevron Corporation were also in the race for a stake in the Mozambique block, they found the asking price too high. “But in such deals, Royal Dutch Shell usually seeks to be the operator. Besides, the sellers are usually more comfortable with national oil companies, given their track record and experience,” said an investment banker, asking not to be named.
OIL and OVL had in June announced the purchase of Videocon Mauritius Energy Ltd’s 10 per cent stake for $2.47 billion. Anadarko, the stake of which will come down to 26.5 per cent, will remain the operator in the project. Besides BPCL, other partners in the project are: Empresa Nacional de Hidrocarbonetos of Mozambique (15 per cent), Mitsui and Co Ltd of Japan (20 per cent) and PTT Exploration and Production Public Co Ltd of Thailand (8.5 per cent).
ALSO READ: ONGC: Concerns overdone
The acquisition, however, is subject to the approvals of the governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is subject to usual closing conditions and has long stop date of February 28, 2014.
“The acquisition of an interest in Area 1 would mark OVL’s entry into this emerging world-class offshore gas basin with significant future upside potential. It is consistent with the company’s quest for addition of high-quality international assets to its existing E&P portfolio,” the company statement said.
ALSO READ: ONGC signs pact to share RIL's facility in KG basin
OVL Chairman Sudhir Vaudeva said in a statement: “As a result of both transactions, OVL will own a significant interest in this strategic project. Area 1 has potential to become one of the world’s largest LNG projects and today’s acquisition marks a further significant step by OVL/ONGC towards the energy security of our country.”
As of 2011, OVL had invested $17 billion in 32 assets in 15 countries. It has struck deals worth over $11 billion over the past year. Last September, the company had bought Hess Corp’s 2.7 per cent stake in Azerbaijan’s largest oilfield and an associated pipeline for $1 billion.
The latest acquisition, which will take the combined holding of OVL and Oil India in the field to 20 per cent (worth $5.11 billion), will increase OVL’s reserve and resource base significantly. This is expected to boost the firm’s production — eight million tonnes of oil & oil equivalent gas at present — and help it meet its long-term targets of 20 mt by FY18 and 60 mt by FY30. Thanks to its recent discoveries in the Rovuma offshore field, the company is touted to become one of the world’s largest liquefied natural gas (LNG) -producing hubs by 2018. The field is said to be the largest gas discovery off Africa’s east coast with estimated recoverable reserves of 35-65 trillion cubic feet (tcf).
ALSO READ: ONGC dips ahead of Anadarko stake buy
OVL Managing Director D K Sarraf told Business Standard the deal was a strategic investment for the country, with Indian companies together holding a 30 per cent stake in the offshore block. Bharat Petroleum Corp Ltd (BPCL) holds a 10 per cent stake. “The field is not far from India, so the LNG transportation cost will be very cheap. We will start getting gas from 2018 which will help revive gas-based downstream investment in the country.”
Though the OVL deal was sealed after prolonged discussions, at a valuation of $5.11 billion, the 20 per cent stake is being seen as a more prudent investment than BP’s acquisition of a 30 per cent stake in Reliance Industries Ltd’s (RIL’s) 21 Indian blocks for $7.2 billion. Of the 21 blocks, 15 were surrendered due to poor hydrocarbon reserves.
ALSO READ: ONGC, RIL, BG set to invest Rs 950 cr in Panna oil and gas field
Sarraf and bankers said the valuation of the OVL deal was very competitive. On a comparison with RIL, Sarraf said: “I would not like to compare it with BP-RIL. Every exploration & production asset has its own risk and reward perception. Since the Mozambique field is fully discovered, there is no risk.”
In February 2011, when BP had bought a stake in RIL’s blocks for $7.2 billion, besides further performance-related payments of up to $1.8 billion, analysts had valued the deep-water assets between $24 billion and $30 billion. BP is said to have paid $7.2 billion, including $2.5 billion towards goodwill; $4.5 billion for the K-G block and another $200-300 million for the rest of the blocks.
Given that BP has already taken a substantial write-off on the assets and the RIL-BP consortium has relinquished a majority of the blocks, analysts say BP did overpay. In a July 2013 presentation, Bob Dudley, BP’s group chief executive, said: “We are working with RIL to rigorously manage KG-D6 base production to maximise recovery and increase production. We are also planning development of around three tcf of existing discoveries.”
ALSO READ: ONGC's stake sale talks with ConocoPhillips, Shell hit defence ministry roadblock
Production from the KG-D6 asset has seen a significant downgrade — from 10 tcf to around 5.5 tcf. “While BP farmed into an explored block with reserve certification in place, OVL neither has a producing asset nor reserve certification. The LNG plans have also not happened. So, by that account, it can be said OVL has paid a premium. Besides, no one knows the kind of returns OVL will get from this asset, as production will begin five years down the line,” said a senior research analyst at a domestic brokerage.
Industry experts said, while oil majors like Royal Dutch Shell and Chevron Corporation were also in the race for a stake in the Mozambique block, they found the asking price too high. “But in such deals, Royal Dutch Shell usually seeks to be the operator. Besides, the sellers are usually more comfortable with national oil companies, given their track record and experience,” said an investment banker, asking not to be named.
OIL and OVL had in June announced the purchase of Videocon Mauritius Energy Ltd’s 10 per cent stake for $2.47 billion. Anadarko, the stake of which will come down to 26.5 per cent, will remain the operator in the project. Besides BPCL, other partners in the project are: Empresa Nacional de Hidrocarbonetos of Mozambique (15 per cent), Mitsui and Co Ltd of Japan (20 per cent) and PTT Exploration and Production Public Co Ltd of Thailand (8.5 per cent).
ALSO READ: ONGC: Concerns overdone
The acquisition, however, is subject to the approvals of the governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is subject to usual closing conditions and has long stop date of February 28, 2014.
“The acquisition of an interest in Area 1 would mark OVL’s entry into this emerging world-class offshore gas basin with significant future upside potential. It is consistent with the company’s quest for addition of high-quality international assets to its existing E&P portfolio,” the company statement said.
ALSO READ: ONGC signs pact to share RIL's facility in KG basin
OVL Chairman Sudhir Vaudeva said in a statement: “As a result of both transactions, OVL will own a significant interest in this strategic project. Area 1 has potential to become one of the world’s largest LNG projects and today’s acquisition marks a further significant step by OVL/ONGC towards the energy security of our country.”
As of 2011, OVL had invested $17 billion in 32 assets in 15 countries. It has struck deals worth over $11 billion over the past year. Last September, the company had bought Hess Corp’s 2.7 per cent stake in Azerbaijan’s largest oilfield and an associated pipeline for $1 billion.
Aegis bags BPO contract from Saudi Telecom Company
Aegis bags BPO contract from Saudi Telecom CompanyPune: Aegis, the global outsourcing and technology services company from Essar Group, has bagged a human resources outsourcing contract from Saudi Telecom Company, further extending its existing relation with the company. Though the company did not disclose the deal size, sources confirmed the deal to be in the range of $50-60 million (around Rs 320 crore to Rs 384 crore).
The deal, that will provide human resources business process outsourcing services, has been won by the joint venture--Call Centre Company (CCC)--set up by Aegis and STC in 2011. As part of the JV, Aegis was to get business worth $2 billion from STC. The current deal is part of the extended work being transferred to the JV.
The scope of the contract includes recruitment, reward and core HR administration, learning services covering content sourcing and development, program planning and delivery, learning system hosting, payroll administration and management. The engagement will impact more than four business units of STC covering over 1,000 employees, and introduce a series of HR process improvements focused on enhancing the user experience.
When contacted, Sandip Sen, global CEO, Aegis confirmed the development, "This is part of the deal we signed in 2011. It started with customer care and now we have moved into other aspects on the company's business. With this they have completely outsources their HR functions. We will be involved in hiring planning, retaining talent within the company," said Sen.
Additionally, Aegis will introduce a more proactive recruiting approach, including future staffing predictive modeling coupled with an intrinsic and deep client domain understanding. Proactive sourcing tools, automation will support more effective, forecasting-led recruiting methods and will result in a broader, more appropriate candidate pool for STC.
Aegis that started this JV with 250 employees have also managed to increase the headcount to 1,300. Going ahead Sen said that the JV will also work towards doing outbound work for STC. "STC is the largest telecom player in Saudi Arabia, we still have huge scope of extending our relationship with the company. I think we can manage some of their foreign language work. We are also looking to get into technology contract of the company," he added.
Apart from Saudi Telecom Company, CCC has also been successful in winning over 6 new external clients across Media, Government, BFSI, Healthcare and Travel & Hospitality verticals. As an outsourcing leader within GCC region, CCC’s strategy aims at providing a holistic business process outsourcing solution encompassing Customer Lifecycle Management, domain specific back office, transformational HR and Procurement, Consulting and Technology.
Apart from Saudi Telecom Company, CCC has also been able to add over six new external clients across media, government, BFSI, healthcare and travel & hospitality vertical.
The deal, that will provide human resources business process outsourcing services, has been won by the joint venture--Call Centre Company (CCC)--set up by Aegis and STC in 2011. As part of the JV, Aegis was to get business worth $2 billion from STC. The current deal is part of the extended work being transferred to the JV.
The scope of the contract includes recruitment, reward and core HR administration, learning services covering content sourcing and development, program planning and delivery, learning system hosting, payroll administration and management. The engagement will impact more than four business units of STC covering over 1,000 employees, and introduce a series of HR process improvements focused on enhancing the user experience.
When contacted, Sandip Sen, global CEO, Aegis confirmed the development, "This is part of the deal we signed in 2011. It started with customer care and now we have moved into other aspects on the company's business. With this they have completely outsources their HR functions. We will be involved in hiring planning, retaining talent within the company," said Sen.
Additionally, Aegis will introduce a more proactive recruiting approach, including future staffing predictive modeling coupled with an intrinsic and deep client domain understanding. Proactive sourcing tools, automation will support more effective, forecasting-led recruiting methods and will result in a broader, more appropriate candidate pool for STC.
Aegis that started this JV with 250 employees have also managed to increase the headcount to 1,300. Going ahead Sen said that the JV will also work towards doing outbound work for STC. "STC is the largest telecom player in Saudi Arabia, we still have huge scope of extending our relationship with the company. I think we can manage some of their foreign language work. We are also looking to get into technology contract of the company," he added.
Apart from Saudi Telecom Company, CCC has also been successful in winning over 6 new external clients across Media, Government, BFSI, Healthcare and Travel & Hospitality verticals. As an outsourcing leader within GCC region, CCC’s strategy aims at providing a holistic business process outsourcing solution encompassing Customer Lifecycle Management, domain specific back office, transformational HR and Procurement, Consulting and Technology.
Apart from Saudi Telecom Company, CCC has also been able to add over six new external clients across media, government, BFSI, healthcare and travel & hospitality vertical.
Increase in the Number of Foreign Tourist Visits in the Country
New Delhi: The number of foreign tourists visiting India has shown a steady increase in the past three years. The number of foreign tourist visits has increased to 207.31 lakh in 2012 as compared to 194.97 lakh in 2011 and 179.10 lakh during 2010. This shows an increase of almost 16 per cent in the past two years.
The highest number of foreign tourists inflow was recorded in Maharashtra at 51.20 lakh followed by Tamilnadu at 35.62 lakh and Delhi at 23.46 lakh in the year 2012.
The Foreign Exchange Earnings (FEEs) from tourism has also shown a significant growth rising to Rs.94,487 crores in 2012 as compared to Rs.77,591 crores in 2011 and Rs.64,889 crores in 2010. This marks an increase of around 46 per cent in the three year period from 2010 to 2012. The Foreign Exchange Earnings (FEEs) is estimated as Rs.50,448 crores in the period January to June, 2013.
The number of Domestic Tourist Visits(DTVs) to States/UTs has also shown an impressive growth of around 39 per cent in the past three years. The number of DTVs in 2012 is estimated at 103.64 crores as compared to 74.77 crores in the year 2010.
The highest number of foreign tourists inflow was recorded in Maharashtra at 51.20 lakh followed by Tamilnadu at 35.62 lakh and Delhi at 23.46 lakh in the year 2012.
The Foreign Exchange Earnings (FEEs) from tourism has also shown a significant growth rising to Rs.94,487 crores in 2012 as compared to Rs.77,591 crores in 2011 and Rs.64,889 crores in 2010. This marks an increase of around 46 per cent in the three year period from 2010 to 2012. The Foreign Exchange Earnings (FEEs) is estimated as Rs.50,448 crores in the period January to June, 2013.
The number of Domestic Tourist Visits(DTVs) to States/UTs has also shown an impressive growth of around 39 per cent in the past three years. The number of DTVs in 2012 is estimated at 103.64 crores as compared to 74.77 crores in the year 2010.
‘California keen on tie-ups with Indian companies’
Bangalore: The US State of California is keen on partnering with Indian companies in education, agriculture and technology sectors.
Addressing students and business leaders in a town hall meeting at Dayananda Sagar Institutions, Ami Bera, Congressman from the 7th District of California, urged States to deepen tie-ups to drive growth for all the stakeholders.
Bera, a doctor by profession and the only Indian American in the US House of Representatives, said that encouraging innovation and cross country collaboration is the need of the hour as a lot of ground-up innovation can come from emerging economies such as India at a time when the US-India economic relationship has recently entered choppy waters.
Addressing students and business leaders in a town hall meeting at Dayananda Sagar Institutions, Ami Bera, Congressman from the 7th District of California, urged States to deepen tie-ups to drive growth for all the stakeholders.
Bera, a doctor by profession and the only Indian American in the US House of Representatives, said that encouraging innovation and cross country collaboration is the need of the hour as a lot of ground-up innovation can come from emerging economies such as India at a time when the US-India economic relationship has recently entered choppy waters.
Saturday, August 24, 2013
L&T wins orders worth Rs 1,504 cr
Mumbai: L&T has secured orders valued at Rs 1,504 crore across business segments in August.
The power transmission and distribution segment got orders worth Rs 1,071 crore.
A major order is from the Tamil Nadu Transmission Corporation for supply, erection and commissioning of a 400 kV double circuit line of 274 km in Tamil Nadu. Another order involves turnkey construction along with supply of towers, conductors and insulators. The orders are slated for completion in 18 months.
A turnkey order from the Purvanchal Vidyut Vitran Nigam Ltd is for carrying out rural electrification works in Jaunpur district of Uttar Pradesh under the Rajiv Gandhi Grameen Vidyutikaran Yojna Phase –II.
L&T’s buildings and factories division also bagged additional orders worth Rs 433 crore in ongoing projects.
The power transmission and distribution segment got orders worth Rs 1,071 crore.
A major order is from the Tamil Nadu Transmission Corporation for supply, erection and commissioning of a 400 kV double circuit line of 274 km in Tamil Nadu. Another order involves turnkey construction along with supply of towers, conductors and insulators. The orders are slated for completion in 18 months.
A turnkey order from the Purvanchal Vidyut Vitran Nigam Ltd is for carrying out rural electrification works in Jaunpur district of Uttar Pradesh under the Rajiv Gandhi Grameen Vidyutikaran Yojna Phase –II.
L&T’s buildings and factories division also bagged additional orders worth Rs 433 crore in ongoing projects.
Coca-Cola bullish on long-term growth in India
Company hopes that India could become one of top five markets for world's largest soft drink maker
New Delhi: Soft drinks major Coca-Cola said on Thursday it would not scale down its proposed investments in India, despite the slowing economic conditions.
The company had announced investments of $5 billion between 2012 and 2020. It said the amount of investment might even go up, in unlocking the growth opportunities in the packaged beverages market. The company has, so far, invested $2 bn in India. “Our investments in India are on track as we build scale, manufacturing capacity, distribution capability and a robust product portfolio to realise our business goals in India.
The ongoing investment in the country is focused on delivering innovation, partnerships and a beverage portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth,” said Ahmet C Bozer, president, Coca-Cola International. Adding: “If we continue to focus on doing the right things in this market, India could emerge as a top-five market for the Coca-Cola Company by 2020.”
At present, India is its seventh largest market. Coca-Cola has completed 20 years of operations in India since its return after it exited the country in the late 70s. The company inaugurated a franchisee bottling plant at Greater Noida on Thursday. It now has 57 plants in India, of which 22 are franchises, 23 are company-owned and 12 are contract packaging units. The new plant would be owned and operated by Moon Beverages, which has invested Rs 140 crore in setting up the plant.
Coca-Cola has registered volume growth in India for 28 consecutive quarters, 19 of which have seen double-digit growth.
New Delhi: Soft drinks major Coca-Cola said on Thursday it would not scale down its proposed investments in India, despite the slowing economic conditions.
The company had announced investments of $5 billion between 2012 and 2020. It said the amount of investment might even go up, in unlocking the growth opportunities in the packaged beverages market. The company has, so far, invested $2 bn in India. “Our investments in India are on track as we build scale, manufacturing capacity, distribution capability and a robust product portfolio to realise our business goals in India.
The ongoing investment in the country is focused on delivering innovation, partnerships and a beverage portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth,” said Ahmet C Bozer, president, Coca-Cola International. Adding: “If we continue to focus on doing the right things in this market, India could emerge as a top-five market for the Coca-Cola Company by 2020.”
At present, India is its seventh largest market. Coca-Cola has completed 20 years of operations in India since its return after it exited the country in the late 70s. The company inaugurated a franchisee bottling plant at Greater Noida on Thursday. It now has 57 plants in India, of which 22 are franchises, 23 are company-owned and 12 are contract packaging units. The new plant would be owned and operated by Moon Beverages, which has invested Rs 140 crore in setting up the plant.
Coca-Cola has registered volume growth in India for 28 consecutive quarters, 19 of which have seen double-digit growth.
Zensar signs new deals in US
Pune: Software services provider Zensar Technologies has signed two new contracts in the US, including a five-year total infrastructure outsourcing deal with a global direct selling company for five of its remote sites.
As part of this agreement, Zensar will establish a shared service and offshore support centre to support the client’s IT infrastructure across locations and also provide a co-location environment by hosting the client’s primary hardware and systems.
Zensar will also be working with a healthcare management organisation providing them infrastructure services for migration of its data centres to the cloud, involving assessment of infrastructure and applications; consolidation, optimization and migration of data and monitoring services.
Ganesh Natarajan, Vice-Chairman and CEO, said, “The second Quarter has been good with large strategic deals in the pipeline getting converted, across the applications and infrastructure businesses.
The key amongst them include multimillion dollar deals with a large direct selling company and a care management organisation.”
As part of this agreement, Zensar will establish a shared service and offshore support centre to support the client’s IT infrastructure across locations and also provide a co-location environment by hosting the client’s primary hardware and systems.
Zensar will also be working with a healthcare management organisation providing them infrastructure services for migration of its data centres to the cloud, involving assessment of infrastructure and applications; consolidation, optimization and migration of data and monitoring services.
Ganesh Natarajan, Vice-Chairman and CEO, said, “The second Quarter has been good with large strategic deals in the pipeline getting converted, across the applications and infrastructure businesses.
The key amongst them include multimillion dollar deals with a large direct selling company and a care management organisation.”
German Railways group lays tracks to expand India investments
New Delhi: The €39-billion Deutsche Bahn Group, or the German Railways, has identified India as a place for future investments, Reiner Allgeier, Managing Director, DB Schenker Logistics (India), a group company of Deutsche Bahn, told Business Line. He, however, declined to divulge details.
DB Schenker Logistics, the service providing arm of DB Group, will expand its presence in India.
“This year, we will grow our footprint by 50 per cent — from 1.3 million square feet in the beginning of the year to two million square feet by year-end,” Allgeier said.
The firm manages exports and import of goods, and within India, it functions primarily in the contract logistics space, which includes managing warehousing and distribution business. DB Schenker’s customers belong to the hi-tech goods, engineering machinery, automotive, retail and healthcare segments.
Staff strength
It has a staff strength of about 2,200 in India, of which, 1,200 are on contract. The staff strength will go up, but not at the same rate as expansion in footprint, the company said.
While the firm has seen its export-import business from India stagnating, it expects the intra-India business to grow. “The export and import business has stagnatedwith imports going down. But, in our export ocean freight, we have been able to increase our volume this year compared with last year, which is good given the market conditions. Also, in intra-India logistics business, which is contract logistics, we are seeing growth,” Allgeier said.
Export-import
In the export-import segment, DB Schenker handles about 80,000 tonnes of air cargo and 79,000-80,000 twenty foot equivalent unit (TEU) of ocean containers a year.
“The contract logistics market in India is growing at 10-15 per cent, as companies are increasingly outsourcing their logistics and warehousing functions. We are registering better growth,” said Allgeier.
Allgeier added that India plays a major role in DB Schenker’s global network. “Our global head office, which is in Germany, and our mother company, the DB Group, has also identified India as a growing market and as a place for future investments,” he said.
DB Schenker Logistics, the service providing arm of DB Group, will expand its presence in India.
“This year, we will grow our footprint by 50 per cent — from 1.3 million square feet in the beginning of the year to two million square feet by year-end,” Allgeier said.
The firm manages exports and import of goods, and within India, it functions primarily in the contract logistics space, which includes managing warehousing and distribution business. DB Schenker’s customers belong to the hi-tech goods, engineering machinery, automotive, retail and healthcare segments.
Staff strength
It has a staff strength of about 2,200 in India, of which, 1,200 are on contract. The staff strength will go up, but not at the same rate as expansion in footprint, the company said.
While the firm has seen its export-import business from India stagnating, it expects the intra-India business to grow. “The export and import business has stagnatedwith imports going down. But, in our export ocean freight, we have been able to increase our volume this year compared with last year, which is good given the market conditions. Also, in intra-India logistics business, which is contract logistics, we are seeing growth,” Allgeier said.
Export-import
In the export-import segment, DB Schenker handles about 80,000 tonnes of air cargo and 79,000-80,000 twenty foot equivalent unit (TEU) of ocean containers a year.
“The contract logistics market in India is growing at 10-15 per cent, as companies are increasingly outsourcing their logistics and warehousing functions. We are registering better growth,” said Allgeier.
Allgeier added that India plays a major role in DB Schenker’s global network. “Our global head office, which is in Germany, and our mother company, the DB Group, has also identified India as a growing market and as a place for future investments,” he said.
FDI in news channels, FM radios may be raised to 49%: TRAI
New Delhi: The Telecom Regulatory Authority of India (TRAI) has recommended that the foreign direct investment limit in news channels and FM radio services be raised from 26% to 49%, subject to clearance by the Foreign Investment Promotion Board (FIPB).
It has also suggested that the limit for FDI in broadcast carriage services such as cable TV, direct-to-home, IPTV, mobile TV, HITS and Teleport be enhanced to 100%, up from the current limit of 74%. However, companies in these businesses can avail of the automatic route as long as the FDI is not higher than 49%.
For FDI components higher than 49%, they would need the approval of the FIPB, the telecom regulator said as part of its recommendations that were made public on Thursday. The regulator made these recommendations based on the responses of industry stakeholders to a consultation paper that was put up by the authority on July 30, 2013.
It also recommended maintaining of status quo with respect to FDI limits for uplinking of non-news and current affairs TV channels as well as downlinking of TV channels, but FDI should go through FIPB. These segments are currently allowed to have 100% FDI.
Trai said that several stakeholders have stated that the present cap of 26% for uplinking of news and current affairs channels acts as a disincentive to prospective investors from infusing funds as they do not find it economically and financially beneficial.
"This is the reason cited for the fact that hardly any news broadcasting company has been able to fully utilise its existing FDI limit. They have further commented that the survival of Indian news channels in the long run has become a matter of serious concern as today the Indian e-News sector does not have the necessary wherewithal to even compete nationally and no Indian news channel has been able to set up an international bureau abroad," the authority said in its recommendations.
Sunil Lulla, managing director and chief executive officer of Times Television Network, which runs Times Now, ET Now and Movies Now channels said, "We applaud Trai for endorsing the industry's view. We believe capital investment will enable growth and expansion in cable and news television. It will bring in quality players and create a global standard for India."
In June this year, a committee that is led by economic affairs secretary Arvind Mayaram had recommended upping FDI limits for television news and FM Radio to 49% while it had said that where control by foreign or local players is not of consequence, like in the case of broadcast carriage services, 100% FDI should be allowed. Trai's recommendations are in line with those of this committee.
It has also suggested that the limit for FDI in broadcast carriage services such as cable TV, direct-to-home, IPTV, mobile TV, HITS and Teleport be enhanced to 100%, up from the current limit of 74%. However, companies in these businesses can avail of the automatic route as long as the FDI is not higher than 49%.
For FDI components higher than 49%, they would need the approval of the FIPB, the telecom regulator said as part of its recommendations that were made public on Thursday. The regulator made these recommendations based on the responses of industry stakeholders to a consultation paper that was put up by the authority on July 30, 2013.
It also recommended maintaining of status quo with respect to FDI limits for uplinking of non-news and current affairs TV channels as well as downlinking of TV channels, but FDI should go through FIPB. These segments are currently allowed to have 100% FDI.
Trai said that several stakeholders have stated that the present cap of 26% for uplinking of news and current affairs channels acts as a disincentive to prospective investors from infusing funds as they do not find it economically and financially beneficial.
"This is the reason cited for the fact that hardly any news broadcasting company has been able to fully utilise its existing FDI limit. They have further commented that the survival of Indian news channels in the long run has become a matter of serious concern as today the Indian e-News sector does not have the necessary wherewithal to even compete nationally and no Indian news channel has been able to set up an international bureau abroad," the authority said in its recommendations.
Sunil Lulla, managing director and chief executive officer of Times Television Network, which runs Times Now, ET Now and Movies Now channels said, "We applaud Trai for endorsing the industry's view. We believe capital investment will enable growth and expansion in cable and news television. It will bring in quality players and create a global standard for India."
In June this year, a committee that is led by economic affairs secretary Arvind Mayaram had recommended upping FDI limits for television news and FM Radio to 49% while it had said that where control by foreign or local players is not of consequence, like in the case of broadcast carriage services, 100% FDI should be allowed. Trai's recommendations are in line with those of this committee.
Thursday, August 22, 2013
McNally Bharat wins Rs 532-cr contract from DVC
Kolkata: McNally Bharat Engineering Co Ltd has obtained a Rs 532-crore contract from Damodar Valley Corporation (DVC) for civil and structural work, as well as chimney and elevator construction package at the energy company’s proposed thermal power project in West Bengal.
The 2X600 MW is coming up at Raghunathpur in Purulia district.
The package has to be complete within next 45 months, McNally Bharat said on Wednesday. The McNally stock was down 2 per cent at Rs 45 on the BSE at 3 p.m.
The 2X600 MW is coming up at Raghunathpur in Purulia district.
The package has to be complete within next 45 months, McNally Bharat said on Wednesday. The McNally stock was down 2 per cent at Rs 45 on the BSE at 3 p.m.
McNally Bharat wins Rs 532-cr contract from DVC
Kolkata: McNally Bharat Engineering Co Ltd has obtained a Rs 532-crore contract from Damodar Valley Corporation (DVC) for civil and structural work, as well as chimney and elevator construction package at the energy company’s proposed thermal power project in West Bengal.
The 2X600 MW is coming up at Raghunathpur in Purulia district.
The package has to be complete within next 45 months, McNally Bharat said on Wednesday. The McNally stock was down 2 per cent at Rs 45 on the BSE at 3 p.m.
The 2X600 MW is coming up at Raghunathpur in Purulia district.
The package has to be complete within next 45 months, McNally Bharat said on Wednesday. The McNally stock was down 2 per cent at Rs 45 on the BSE at 3 p.m.
Mahindra World City to set up more integrated business cities
Chennai: The success of the integrated business city model here has prompted Mahindra World City to look at more such projects.
Addressing media persons, Sangeeta Prasad, Chief Executive Officer, Integrated Cities & Industrial Clusters, Mahindra Lifespace Developers, said that over the next three years the company would launch at least two integrated business cities — a second facility to the north of Chennai and another in a different State where land acquisition is on at an undisclosed location. There are two Mahindra World City projects in operation now. While one is to the south of Chennai, near Chinglepet, the other is in Jaipur.
The Chennai facility with three SEZs for the IT, apparels and automotive industry and a Domestic Tariff Area is home to over 60 manufacturing units and accounted for exports of over Rs 6,000 crore in 2012-13. It employs over 33,000 people.
The focus here is now on strengthening the social infrastructure and residential facilities.
S. Chandru, COO, Mahindra World City Developers, said over 6,000 homes are planned at Chennai and 1,500 are under development. A 30-bed hospital and a 140-room Holiday Inn Express will be ready later this year.
Addressing media persons, Sangeeta Prasad, Chief Executive Officer, Integrated Cities & Industrial Clusters, Mahindra Lifespace Developers, said that over the next three years the company would launch at least two integrated business cities — a second facility to the north of Chennai and another in a different State where land acquisition is on at an undisclosed location. There are two Mahindra World City projects in operation now. While one is to the south of Chennai, near Chinglepet, the other is in Jaipur.
The Chennai facility with three SEZs for the IT, apparels and automotive industry and a Domestic Tariff Area is home to over 60 manufacturing units and accounted for exports of over Rs 6,000 crore in 2012-13. It employs over 33,000 people.
The focus here is now on strengthening the social infrastructure and residential facilities.
S. Chandru, COO, Mahindra World City Developers, said over 6,000 homes are planned at Chennai and 1,500 are under development. A 30-bed hospital and a 140-room Holiday Inn Express will be ready later this year.
Manchester United signs Apollo Tyres as its
Mumbai: Making apparent its global ambitions, India's second largest tyre maker Apollo TyresBSE -1.51 % on Wednesday announced that it is tying up with Manchester United, to become the football club's 'official tyre partner' in UK and India.
The company did not disclose the financial consideration of the tie-up.
The new initiative with Manchester United will see Apollo produce football based play zones constructed from used tyres. These rubber-based pitches will be open to young people from local communities in the UK and India, with the aim of encouraging them to take up sports and have a more active lifestyle.
While the Apollo Tyres logo would not sport on the Manchester United Jersey, the Indian company's logo will be there on the club's website and Apollo Tyres will be free to use certain players of Manchester United for their marketing and promotion campaign.
The Indian tyre maker's global ambitions took a huge leap when it announced in June, its plan to acquire US -based Cooper Tire for $2.5 billion.
Speaking about the tie-up, Onkar S Kanwar, chairman, Apollo Tyres Ltd said, "This is a very important partnership for us as a company and clearly demonstrates our global ambitions for our business, and the brand. Very few sports platforms deliver a global profile and awareness and we believe the impact of this relationship will be significant in helping to make Apollo a globally recognisable brand."
A key element of the partnership will be a joint community commitment to encourage healthy lifestyles and develop sporting skills in young people. Drawing on the company's heritage and established CSR programmes.
Prior to Cooper Tire acquisition, Apollo earned 65% of its revenues from India, 23% from Europe and 13% from rest of the world, but post the acquisition the revenue from the three geographies will change. On the completion of the acquisition, Apollo will get 43% of its turnover from North America, 22% from India, 18% from China, 12% from Europe and balance from the rest of the world.
A tyre industry analyst on a condition of anonymity said, "With the kind of widespread distribution, Apollo Tyres will have to look at taking the brand on a global scale. The tie-up with Manchester United is a step in that direction. With this tie-up, they can leverage on Manchester United's strong fan following in India and UK."
The analyst however cautioned that the move would definitely help the company in building the brand, but they will have to do it in a very cost effective way, considering the debt on its book post the Cooper acquisition.
To be sure, while India comes 10th as a country that loves Football in a global study, another Nielsen survey in 2010 found that 47% of India's 1.2 billion population would describe themselves as football fans.
Not only will Apollo and the football club provide kids with a safe soccer pitch but will get kids "offline" again, playing and socializing outside & motivating and triggering kids to get active, work on their soccer skills based upon the 10.000 Hour Rule to mastery and health.
The first of these pitches will be built within the grounds of Old Trafford and include some specific Apollo 'Go The Distance' skills challenges, before they are rolled out across the country and then in other markets around the world, the company said.
According to Alpana Parida, president at DY Works, a leading brand firm, it is a smart move by Apollo Tyres. The tie up will attract attention of young male audience, who is increasingly interested in football.
"It is a brilliant move. Rather than simply rubber stamping the logo, Apollo is actually engaging with audiences with such grassroots initiative, which will have a greater impact on the brand image. The tie-up has a potential to build deeper relationship with young people. It will pay off for the brand and this could lead to customer acquisition instead of just customer awareness and builds a long term relationship with the brand," added Parida.
Kanwar expressed pride of introducing a new healthy living initiative under our corporate social responsibility (CSR), to create new play zones for the youth in the UK and India. "In its aim to stimulate the next generations to go the distance, this association really brings to life our brand values of high performance, quality and excellence,"added Kanwar.
Commenting on the tie-up, Manchester United Group MD, Richard Arnold said, "Apollo Tyres is a leading player in the tyre industry and its rate of growth and development into new territories made it an attractive partner for the Club. With a combined fan base close to 46 million followers in both the UK and India, we are confident in providing Apollo with a captive audience.
"This partnership will allow Apollo not only to promote its brand, but also to engage and communicate with our fans, like we observed today with the skills demonstration.
"Manchester United is dedicated to youth investment and development, whether through our Academy or via the work we do in the community," added Arnold.
The company did not disclose the financial consideration of the tie-up.
The new initiative with Manchester United will see Apollo produce football based play zones constructed from used tyres. These rubber-based pitches will be open to young people from local communities in the UK and India, with the aim of encouraging them to take up sports and have a more active lifestyle.
While the Apollo Tyres logo would not sport on the Manchester United Jersey, the Indian company's logo will be there on the club's website and Apollo Tyres will be free to use certain players of Manchester United for their marketing and promotion campaign.
The Indian tyre maker's global ambitions took a huge leap when it announced in June, its plan to acquire US -based Cooper Tire for $2.5 billion.
Speaking about the tie-up, Onkar S Kanwar, chairman, Apollo Tyres Ltd said, "This is a very important partnership for us as a company and clearly demonstrates our global ambitions for our business, and the brand. Very few sports platforms deliver a global profile and awareness and we believe the impact of this relationship will be significant in helping to make Apollo a globally recognisable brand."
A key element of the partnership will be a joint community commitment to encourage healthy lifestyles and develop sporting skills in young people. Drawing on the company's heritage and established CSR programmes.
Prior to Cooper Tire acquisition, Apollo earned 65% of its revenues from India, 23% from Europe and 13% from rest of the world, but post the acquisition the revenue from the three geographies will change. On the completion of the acquisition, Apollo will get 43% of its turnover from North America, 22% from India, 18% from China, 12% from Europe and balance from the rest of the world.
A tyre industry analyst on a condition of anonymity said, "With the kind of widespread distribution, Apollo Tyres will have to look at taking the brand on a global scale. The tie-up with Manchester United is a step in that direction. With this tie-up, they can leverage on Manchester United's strong fan following in India and UK."
The analyst however cautioned that the move would definitely help the company in building the brand, but they will have to do it in a very cost effective way, considering the debt on its book post the Cooper acquisition.
To be sure, while India comes 10th as a country that loves Football in a global study, another Nielsen survey in 2010 found that 47% of India's 1.2 billion population would describe themselves as football fans.
Not only will Apollo and the football club provide kids with a safe soccer pitch but will get kids "offline" again, playing and socializing outside & motivating and triggering kids to get active, work on their soccer skills based upon the 10.000 Hour Rule to mastery and health.
The first of these pitches will be built within the grounds of Old Trafford and include some specific Apollo 'Go The Distance' skills challenges, before they are rolled out across the country and then in other markets around the world, the company said.
According to Alpana Parida, president at DY Works, a leading brand firm, it is a smart move by Apollo Tyres. The tie up will attract attention of young male audience, who is increasingly interested in football.
"It is a brilliant move. Rather than simply rubber stamping the logo, Apollo is actually engaging with audiences with such grassroots initiative, which will have a greater impact on the brand image. The tie-up has a potential to build deeper relationship with young people. It will pay off for the brand and this could lead to customer acquisition instead of just customer awareness and builds a long term relationship with the brand," added Parida.
Kanwar expressed pride of introducing a new healthy living initiative under our corporate social responsibility (CSR), to create new play zones for the youth in the UK and India. "In its aim to stimulate the next generations to go the distance, this association really brings to life our brand values of high performance, quality and excellence,"added Kanwar.
Commenting on the tie-up, Manchester United Group MD, Richard Arnold said, "Apollo Tyres is a leading player in the tyre industry and its rate of growth and development into new territories made it an attractive partner for the Club. With a combined fan base close to 46 million followers in both the UK and India, we are confident in providing Apollo with a captive audience.
"This partnership will allow Apollo not only to promote its brand, but also to engage and communicate with our fans, like we observed today with the skills demonstration.
"Manchester United is dedicated to youth investment and development, whether through our Academy or via the work we do in the community," added Arnold.
Welspun launches 55-MW solar plant in Rajasthan
Rawra: Welspun Energy Ltd on Wednesday unveiled a 55-MW solar plant in Rajasthan.
The Rs 500-crore project, stated to be Asia's largest single-location solar plant, was inaugurated by Union Minister for New and Renewable Energy, Farooq Abdullah, and Rajasthan Chief Minister Ashok Gehlot.
Welspun said it had a target to invest Rs 15,000 crore to set up 1,750 MW of renewable energy projects in the next three years.
At present, it has an operating capacity of around 150 MW. This would go up to 400 MW by the end of the current fiscal, Vineet Mittal, co-founder and Managing Director of Welspun, told Business Line.
The company would raise domestic loans to fund the expansion plans, Mittal said without divulging further details.
“We are seeing tariffs going up. If you see last year, the tariff was around Rs 8.50 a unit in Maharashtra and in Punjab it was around Rs 8.70 a unit,” Mittal said.
Welspun's project build-up plan includes 850 MW wind and 550 MW solar plants in Karnataka. In Rajasthan, the privately-held company aims to develop wind capacity of around 300 MW.
Signs deals
In addition, Welspun has signed MoUs with Andhra Pradesh and Chhattisgarh to set up 500 MW wind and 100 MW solar capacities.
The new solar project, located near Phalodi in Jodhpur District, was developed in three phases of 15, 15 and 20 MW. The project was completed in five months.
“The project is one of the highest plant load factor generating plants of the country. It touched 26 per cent DC plant load factor, a figure much higher than those of its neighbouring plants,” Welspun said.
The solar farm will generate 90 million units of electricity annually.
Welspun bagged the project under the National Solar Mission, where NTPC Vidyut Vyapar Nigam Ltd is the nodal agency for the bidding process.
The Rs 500-crore project, stated to be Asia's largest single-location solar plant, was inaugurated by Union Minister for New and Renewable Energy, Farooq Abdullah, and Rajasthan Chief Minister Ashok Gehlot.
Welspun said it had a target to invest Rs 15,000 crore to set up 1,750 MW of renewable energy projects in the next three years.
At present, it has an operating capacity of around 150 MW. This would go up to 400 MW by the end of the current fiscal, Vineet Mittal, co-founder and Managing Director of Welspun, told Business Line.
The company would raise domestic loans to fund the expansion plans, Mittal said without divulging further details.
“We are seeing tariffs going up. If you see last year, the tariff was around Rs 8.50 a unit in Maharashtra and in Punjab it was around Rs 8.70 a unit,” Mittal said.
Welspun's project build-up plan includes 850 MW wind and 550 MW solar plants in Karnataka. In Rajasthan, the privately-held company aims to develop wind capacity of around 300 MW.
Signs deals
In addition, Welspun has signed MoUs with Andhra Pradesh and Chhattisgarh to set up 500 MW wind and 100 MW solar capacities.
The new solar project, located near Phalodi in Jodhpur District, was developed in three phases of 15, 15 and 20 MW. The project was completed in five months.
“The project is one of the highest plant load factor generating plants of the country. It touched 26 per cent DC plant load factor, a figure much higher than those of its neighbouring plants,” Welspun said.
The solar farm will generate 90 million units of electricity annually.
Welspun bagged the project under the National Solar Mission, where NTPC Vidyut Vyapar Nigam Ltd is the nodal agency for the bidding process.
India, Iraq to ink pact for energy cooperation
New Delhi: India plans to strengthen its ties in the energy sector with Iraq, the second largest crude oil supplier to the country.
The Cabinet on Thursday is expected to consider a proposal from the Petroleum and Natural Gas Ministry seeking approval for enhancing cooperation with Iraq in the sector.
Besides, a formal memorandum of understanding on cooperation in the sector would be signed during the four-day visit of the Iraqi Prime Minister Nouri al-Maliki to India starting on Thursday.
Nomination basis
Last month, Petroleum and Natural Gas Minister M. Veerappa Moily, on his return from Baghdad after attending the 17 {+t} {+h} Joint Commission Meeting between India and Iraq, had said that the Gulf nation has offered three discovered blocks in Middle Furat oil fields on nomination basis to Indian companies, particularly national oil companies.
Giving blocks on nomination basis would mean offering India access on a preferential basis, and the Indian companies need not compete with other international players in the bidding rounds to acquire stake.
Iraq has also committed to meet the long-term crude oil requirements of India and is open to consider more favourable commercial terms including extending the interest free credit period from 30 to 60 days.
In 2012-13 (provisional), India’s imports from Iraq stood at 24.04 million tonnes, of the total crude oil imports of 186.3 million tonnes.
Opportunities in gas
Moily had said that possibilities for cooperation in the gas sector could include LNG imports from the gulf nation an issue which was also discussed at the Joint Commission Meeting. Indian companies were also keen to participate in the Nassiriya integrated project in Iraq.
It has also agreed to restart negotiation with ONGC Videsh Ltd on the long pending contract for oil Block 8 in Iraq. ONGC Videsh has invested about $2 million till March 31, 2012.
It is a discovered block estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable.
The gulf nation has also shown interest in Indian Oil Corporation’s 15-million-tonne Paradip refinery project in Odisha.
The Cabinet on Thursday is expected to consider a proposal from the Petroleum and Natural Gas Ministry seeking approval for enhancing cooperation with Iraq in the sector.
Besides, a formal memorandum of understanding on cooperation in the sector would be signed during the four-day visit of the Iraqi Prime Minister Nouri al-Maliki to India starting on Thursday.
Nomination basis
Last month, Petroleum and Natural Gas Minister M. Veerappa Moily, on his return from Baghdad after attending the 17 {+t} {+h} Joint Commission Meeting between India and Iraq, had said that the Gulf nation has offered three discovered blocks in Middle Furat oil fields on nomination basis to Indian companies, particularly national oil companies.
Giving blocks on nomination basis would mean offering India access on a preferential basis, and the Indian companies need not compete with other international players in the bidding rounds to acquire stake.
Iraq has also committed to meet the long-term crude oil requirements of India and is open to consider more favourable commercial terms including extending the interest free credit period from 30 to 60 days.
In 2012-13 (provisional), India’s imports from Iraq stood at 24.04 million tonnes, of the total crude oil imports of 186.3 million tonnes.
Opportunities in gas
Moily had said that possibilities for cooperation in the gas sector could include LNG imports from the gulf nation an issue which was also discussed at the Joint Commission Meeting. Indian companies were also keen to participate in the Nassiriya integrated project in Iraq.
It has also agreed to restart negotiation with ONGC Videsh Ltd on the long pending contract for oil Block 8 in Iraq. ONGC Videsh has invested about $2 million till March 31, 2012.
It is a discovered block estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable.
The gulf nation has also shown interest in Indian Oil Corporation’s 15-million-tonne Paradip refinery project in Odisha.
Venus Pharma gets approval to sell meropenem in France
une: Venus Pharma GmbH, a subsidiary of Venus Remedies Ltd, has bagged market authorisation approval from France for meropenem, a generic injectable broad spectrum antibiotic.
It has signed a non-exclusive marketing rights deal with generic giant Mylan to sell meropenem in France, the world’s fifth largest pharma market with a share of 3.8 per cent.
During FY’13, the company generated €5 million from meropenem exports and expects to double this figure by the end of this year. Sales of the formulation around the globe, currently at $906 million, are poised to cross $1,000 million by the end of 2013.
In association with partners, Venus offers meropenem to 35 countries. It aims to penetrate the market in 15 more countries in the first quarter of 2014, the company said in a filing to the BSE.
It has signed a non-exclusive marketing rights deal with generic giant Mylan to sell meropenem in France, the world’s fifth largest pharma market with a share of 3.8 per cent.
During FY’13, the company generated €5 million from meropenem exports and expects to double this figure by the end of this year. Sales of the formulation around the globe, currently at $906 million, are poised to cross $1,000 million by the end of 2013.
In association with partners, Venus offers meropenem to 35 countries. It aims to penetrate the market in 15 more countries in the first quarter of 2014, the company said in a filing to the BSE.
Kirloskar arm opens new unit in Atlanta
Pune: SPP Pumps, a subsidiary of Kirloskar Brothers Ltd (KBL), has inaugurated its most advanced facility at Atlanta, USA. This is KBL’s seventh manufacturing facility worldwide.
With an investment of $6 million, the new plant has an installed capacity of 2,500 units annually. The latest engineering, testing and training facility in Atlanta will manufacture and assemble end suction, horizontal split case, multi-stage and vertical turbine pumps.
The new vertical turbine test facility will enhance its capability to expand in the power sector and increase the dominance in the fire market.
With the opening of the new facility, SPP Pumps’ production capacity will increase by 30 per cent and the turnover is expected to reach $ 40 million in the next three years.
John Kahren, President of SPP Pumps Inc., said: “With this new investment, we are eyeing to expand into new markets and continue our dominance in the fire pump markets. The Atlanta facility will be instrumental in achieving our projected growth for years to come.”
The new plant will strengthen SPP Pumps’ growth in the industries such as municipal, commercial, industrial, HVAC, process, power and fire pump markets.
With an investment of $6 million, the new plant has an installed capacity of 2,500 units annually. The latest engineering, testing and training facility in Atlanta will manufacture and assemble end suction, horizontal split case, multi-stage and vertical turbine pumps.
The new vertical turbine test facility will enhance its capability to expand in the power sector and increase the dominance in the fire market.
With the opening of the new facility, SPP Pumps’ production capacity will increase by 30 per cent and the turnover is expected to reach $ 40 million in the next three years.
John Kahren, President of SPP Pumps Inc., said: “With this new investment, we are eyeing to expand into new markets and continue our dominance in the fire pump markets. The Atlanta facility will be instrumental in achieving our projected growth for years to come.”
The new plant will strengthen SPP Pumps’ growth in the industries such as municipal, commercial, industrial, HVAC, process, power and fire pump markets.
LandT bags Rs 1,500-cr EPC order from Omani company
Mumbai: L&T has bagged an engineering, procurement and construction (EPC) order worth about Rs 1,500 crore ($250 million) from Petroleum Development Oman (PDO).
The order is for a project at the Yibal-Natih gas reservoir in Oman. It is scheduled for completion in 39 months. The reservoir has been in production since 1972 and has undergone a series of expansions.
“With significant growth potential for the natural gas market in the Gulf, this order is strategic for L&T and reflects its capability to execute such projects in an extremely competitive environment,” L&T said.
L&T is currently executing two projects — the Lekhwair Gas Field Development Project and the Saih Rawl Depletion Compression Project for PDO.
PDO is a leading exploration and production company in the Sultanate and accounts for over 70 per cent of the country’s crude oil production and almost all its natural gas supply.
The Government of Oman has 60 per cent stake and Royal Dutch Shell 34 per cent in the PDO.
The order is for a project at the Yibal-Natih gas reservoir in Oman. It is scheduled for completion in 39 months. The reservoir has been in production since 1972 and has undergone a series of expansions.
“With significant growth potential for the natural gas market in the Gulf, this order is strategic for L&T and reflects its capability to execute such projects in an extremely competitive environment,” L&T said.
L&T is currently executing two projects — the Lekhwair Gas Field Development Project and the Saih Rawl Depletion Compression Project for PDO.
PDO is a leading exploration and production company in the Sultanate and accounts for over 70 per cent of the country’s crude oil production and almost all its natural gas supply.
The Government of Oman has 60 per cent stake and Royal Dutch Shell 34 per cent in the PDO.
L&T bags Rs 1,500-cr EPC order from Omani company
Mumbai: L&T has bagged an engineering, procurement and construction (EPC) order worth about Rs 1,500 crore ($250 million) from Petroleum Development Oman (PDO).
The order is for a project at the Yibal-Natih gas reservoir in Oman. It is scheduled for completion in 39 months. The reservoir has been in production since 1972 and has undergone a series of expansions.
“With significant growth potential for the natural gas market in the Gulf, this order is strategic for L&T and reflects its capability to execute such projects in an extremely competitive environment,” L&T said.
L&T is currently executing two projects — the Lekhwair Gas Field Development Project and the Saih Rawl Depletion Compression Project for PDO.
PDO is a leading exploration and production company in the Sultanate and accounts for over 70 per cent of the country’s crude oil production and almost all its natural gas supply.
The Government of Oman has 60 per cent stake and Royal Dutch Shell 34 per cent in the PDO.
The order is for a project at the Yibal-Natih gas reservoir in Oman. It is scheduled for completion in 39 months. The reservoir has been in production since 1972 and has undergone a series of expansions.
“With significant growth potential for the natural gas market in the Gulf, this order is strategic for L&T and reflects its capability to execute such projects in an extremely competitive environment,” L&T said.
L&T is currently executing two projects — the Lekhwair Gas Field Development Project and the Saih Rawl Depletion Compression Project for PDO.
PDO is a leading exploration and production company in the Sultanate and accounts for over 70 per cent of the country’s crude oil production and almost all its natural gas supply.
The Government of Oman has 60 per cent stake and Royal Dutch Shell 34 per cent in the PDO.
FDI proposals worth US$ 173 million in single brand retail were approved till May 2013
New Delhi: The Government of India approved 18 foreign direct investment (FDI) proposals worth US$ 173 million in the single brand retail sector during April 2010 and May 2013. Out of these, five proposals worth US$ 137.68 million were approved during the first two months of 2013-14.
Fashion brand Promod, France-based crockery maker Le Creuset, accessories firm Fossil Inc and French sports giant Decathlon are some of the firms which have received approvals to open retail stores under the single-brand retail policy.
The Government had raised the FDI cap in single-brand retail to 100 per cent from 51 per cent in January 2012.
The country also attracted FDI worth US$ 256.7 million in agriculture services during April 2010 and May 2013, said Mr Anand Sharma, Union Minister for Commerce and Industry, Government of India.
Fashion brand Promod, France-based crockery maker Le Creuset, accessories firm Fossil Inc and French sports giant Decathlon are some of the firms which have received approvals to open retail stores under the single-brand retail policy.
The Government had raised the FDI cap in single-brand retail to 100 per cent from 51 per cent in January 2012.
The country also attracted FDI worth US$ 256.7 million in agriculture services during April 2010 and May 2013, said Mr Anand Sharma, Union Minister for Commerce and Industry, Government of India.
India-Indonesian trade to touch $ 45 b by 2015
Hyderabad: Bilateral trade between India and Indonesia is set to increase to $45 billion by 2015 from the current level of $16.80 billion, according to Hariyanta Soetarto, Consul and Head of Chancery, Consulate General of Indonesia.
Addressing members of the Federation of Andhra Pradesh Chambers of Commerce and Industry here today, he said implementation of the ASEAN-India Free Trade Agreement was driving trade between the two countries.
He pointed out that the Indonesian Government was implementing a master plan for expansion of the Indonesian economy, focussing on 22 sectors, including shipping, textiles, steel, defence equipment, palm oil, animal husbandry, oil and gas, coal and tourism.
He wanted Indian entrepreneurs to participate in the forthcoming investment event, Jakarta Investment Expo 2013, to be held at Tangerang from October 21-23. The event will feature an investment exhibition and B2B meetings.
India is the largest buyer of crude palm oil from Indonesia. At present, India exports refined petroleum products, wheat, rice, sugar and steel to Indonesia. The country’s imports stood at $11 billion, primarily based on natural resources such as coal, crude palm oil, wood, rubber and furniture. A major player in the global coal market, Indonesia is today the second largest thermal coal exporting country, with a production of over 274 million tonnes.
Addressing members of the Federation of Andhra Pradesh Chambers of Commerce and Industry here today, he said implementation of the ASEAN-India Free Trade Agreement was driving trade between the two countries.
He pointed out that the Indonesian Government was implementing a master plan for expansion of the Indonesian economy, focussing on 22 sectors, including shipping, textiles, steel, defence equipment, palm oil, animal husbandry, oil and gas, coal and tourism.
He wanted Indian entrepreneurs to participate in the forthcoming investment event, Jakarta Investment Expo 2013, to be held at Tangerang from October 21-23. The event will feature an investment exhibition and B2B meetings.
India is the largest buyer of crude palm oil from Indonesia. At present, India exports refined petroleum products, wheat, rice, sugar and steel to Indonesia. The country’s imports stood at $11 billion, primarily based on natural resources such as coal, crude palm oil, wood, rubber and furniture. A major player in the global coal market, Indonesia is today the second largest thermal coal exporting country, with a production of over 274 million tonnes.
Tuesday, August 20, 2013
Zydus to invest Rs 100 crore in Vadodara unit, expand hospital business
Ahmedabad: Zydus Cadila will set up an injectible facility at Vadodara at an investment of Rs 100 crore by 2015, a senior company official said, adding that land has been acquired. The Ahmedabad-based company also plans to expand its hospital business across Gujarat in the next three years.
"We are coming up with a USFDA-approved injectible facility at Vadodara to cater to the high-value US market. Regulated markets like Brazil and Europe would be the next focus," chief operating officer Ganesh Nayak of the Rs 6,300-crore company said on the sidelines of Nirma University's marketing conclave, Ayatana-2013.
The new facility would be commenced by 2015 and it is meant only for therapeutic segments other than oncology. Zydus Cadila already has a joint venture with US-based Hospira for manufacturing anti-oncology injectibles at Matoda SEZ plant, near Ahmedabad, where the company has another joint venture with Bharat Serum and Vaccine.
Zydus Hospitals & Healthcare Research recently started its first hospital operations at Anand, better known as Amul's hometown. "We would add four hospitals in the next three years at Surat, Vadodara, Ahmedabad and Rajkot," says Mr Nayak. The second hospital would come up at Ahmedabad and have a helipad on the rooftop for air-ambulance services. However, Mr Nayak declined to disclose the quantum of investment for the hospitals' expansion.
Apart from the two new projects, Zydus is also looking at co-marketing or in-licensing of patented drugs for domestic markets. "A drug company has three ways to sustain its growth trajectory - own patent products, off patent (generic products) and the third way is through co-marketing or in-licensing."
Elaborating on co-marketing or in-licensing strategy, Mr Nayak says that the company has three co-marketing patented products-pantoprazole ( Nycomed Pharma, now acquired by Takeda Pharma), xarelto (Bayer Healthcare) and nexavar (Bayer Healthcare). Zydus has joint venture units with the patent holder companies and produces locally. "We are further seeking new co-marketing or in-licensing of patented products for our future growth," added Mr Nayak.
The company is also pining hopes on its indigenously developed dual-action diabetic drug-lipalyn-that can lower both blood sugar and cholesterol levels. Usually, a diabetic patient runs the risk of dyslipidemia (abnormal lipid/cholesterol accumulation). According to Mr Nayak, lipalyn drug addresses the problem of dyslipidemia in diabetic patients.
"We are coming up with a USFDA-approved injectible facility at Vadodara to cater to the high-value US market. Regulated markets like Brazil and Europe would be the next focus," chief operating officer Ganesh Nayak of the Rs 6,300-crore company said on the sidelines of Nirma University's marketing conclave, Ayatana-2013.
The new facility would be commenced by 2015 and it is meant only for therapeutic segments other than oncology. Zydus Cadila already has a joint venture with US-based Hospira for manufacturing anti-oncology injectibles at Matoda SEZ plant, near Ahmedabad, where the company has another joint venture with Bharat Serum and Vaccine.
Zydus Hospitals & Healthcare Research recently started its first hospital operations at Anand, better known as Amul's hometown. "We would add four hospitals in the next three years at Surat, Vadodara, Ahmedabad and Rajkot," says Mr Nayak. The second hospital would come up at Ahmedabad and have a helipad on the rooftop for air-ambulance services. However, Mr Nayak declined to disclose the quantum of investment for the hospitals' expansion.
Apart from the two new projects, Zydus is also looking at co-marketing or in-licensing of patented drugs for domestic markets. "A drug company has three ways to sustain its growth trajectory - own patent products, off patent (generic products) and the third way is through co-marketing or in-licensing."
Elaborating on co-marketing or in-licensing strategy, Mr Nayak says that the company has three co-marketing patented products-pantoprazole ( Nycomed Pharma, now acquired by Takeda Pharma), xarelto (Bayer Healthcare) and nexavar (Bayer Healthcare). Zydus has joint venture units with the patent holder companies and produces locally. "We are further seeking new co-marketing or in-licensing of patented products for our future growth," added Mr Nayak.
The company is also pining hopes on its indigenously developed dual-action diabetic drug-lipalyn-that can lower both blood sugar and cholesterol levels. Usually, a diabetic patient runs the risk of dyslipidemia (abnormal lipid/cholesterol accumulation). According to Mr Nayak, lipalyn drug addresses the problem of dyslipidemia in diabetic patients.
Private equity flows into water sector
Mumbai: Private equity funds are eyeing investments in the country’s water sector. Singapore-based CLSA Capital Partners invested $9.2 million (Rs 55 crore) in Gurgaon-based Luminous Water Technologies in end-July, through its two funds.
Last year, the alternative asset management firm had invested $15 million in Delhi-based Earth Water Group, which is into water and wastewater treatment projects.
Similarly, Capvent AG, a Switzerland-based private equity (PE) fund, picked up 51 per cent stake for Rs 12 crore in Morf India Ltd, a Chennai-based water engineering company.
Earlier this month, Organica Water, which is into treatment and recycling of wastewater, completed a Series B round of financing. Led by the International Finance Corporation and WLR China Energy Infrastructure Fund, existing investors RNK Capital and Gamma Capital Partners also participated in the funding.
The Hungarian firm has offices in New Delhi, and has signed contracts with several Indian water companies for design and equipment supply of water treatment plants.
Currently pegged at Rs 3,500 crore, analysts estimate by 2015, private equity investment in the water sector is set to touch Rs 7,500 crore.
A report by TechSci Research has noted that India’s water purifiers market is expected to grow at a compounded annual growth rate of 24 per cent between 2013-18. Approximately 70 per cent of the country’s water purifier market is dominated by organised players such as Eureka Forbes, Hindustan Unilever, Tata Chemicals and Kent.
With the level of water contamination considerably higher in Rajasthan, Andhra Pradesh, and Odisha, the report said the demand for water purifiers was bound to increase there.
Kent, the largest water purifier manufacturer in the Reverse Osmosis (RO) segment, is not looking at raising funds through the PE route, for now. However, Managing Director Mahesh Gupta said that of late, there has been a lot of activity in the water space, with many new players entering the segment.
Hot property
“We have been approached by several players (for a stake), but we are not looking at it right now. But I am not totally against the idea too,” Gupta told Business Line, adding that some 30-40 companies in Ahmedabad and Delhi dealing in water, were indeed looking for funds.
Gupta said PEs would not provide any technical expertise to these companies, but help them expand faster.
An IDFC official told Business Line that foreign PE consider India’s water sector as “hot property” and many Indian water and wastewater companies have raised funds to fuel their expansion activities.
Last year, the alternative asset management firm had invested $15 million in Delhi-based Earth Water Group, which is into water and wastewater treatment projects.
Similarly, Capvent AG, a Switzerland-based private equity (PE) fund, picked up 51 per cent stake for Rs 12 crore in Morf India Ltd, a Chennai-based water engineering company.
Earlier this month, Organica Water, which is into treatment and recycling of wastewater, completed a Series B round of financing. Led by the International Finance Corporation and WLR China Energy Infrastructure Fund, existing investors RNK Capital and Gamma Capital Partners also participated in the funding.
The Hungarian firm has offices in New Delhi, and has signed contracts with several Indian water companies for design and equipment supply of water treatment plants.
Currently pegged at Rs 3,500 crore, analysts estimate by 2015, private equity investment in the water sector is set to touch Rs 7,500 crore.
A report by TechSci Research has noted that India’s water purifiers market is expected to grow at a compounded annual growth rate of 24 per cent between 2013-18. Approximately 70 per cent of the country’s water purifier market is dominated by organised players such as Eureka Forbes, Hindustan Unilever, Tata Chemicals and Kent.
With the level of water contamination considerably higher in Rajasthan, Andhra Pradesh, and Odisha, the report said the demand for water purifiers was bound to increase there.
Kent, the largest water purifier manufacturer in the Reverse Osmosis (RO) segment, is not looking at raising funds through the PE route, for now. However, Managing Director Mahesh Gupta said that of late, there has been a lot of activity in the water space, with many new players entering the segment.
Hot property
“We have been approached by several players (for a stake), but we are not looking at it right now. But I am not totally against the idea too,” Gupta told Business Line, adding that some 30-40 companies in Ahmedabad and Delhi dealing in water, were indeed looking for funds.
Gupta said PEs would not provide any technical expertise to these companies, but help them expand faster.
An IDFC official told Business Line that foreign PE consider India’s water sector as “hot property” and many Indian water and wastewater companies have raised funds to fuel their expansion activities.
AP preferred for UK investments
Hyderabad: For UK companies Andhra Pradesh continues to be one of the preferred states in India for investments.
An action plan for exchange of delegations in the select sectors would soon be worked out in consultation with the UK Trade and Investment Office in Hyderabad so that British companies can find appropriate partners and locations in Andhra Pradesh for investments.
This emerged after a meeting between the Director-General of UK Trade and Investment Department and State industry department officials. Areas of life sciences, aviation, defence and high-tech manufacturing, green technologies, gas and energy, IT hardware and food processing were identified as potential sectors for mutual cooperation. Kumar Iyer, Deputy High Commissioner and Director-General of UK Trade and Investment accompanied by Andrew McAllister, British Deputy High Commissioner in Hyderabad met K. Pradeep Chandra, Principal Secretary, Industries and Commerce Department in the Secretariat today.
Kumar Iyer informed that the British Government has identified Andhra Pradesh as one of the preferred states in India for investments.
In turn, the State officials explained the advantages of Andhra Pradesh as an investment destination with a natural resource base and industrial parks spread all over the State.
An action plan for exchange of delegations in the select sectors would soon be worked out in consultation with the UK Trade and Investment Office in Hyderabad so that British companies can find appropriate partners and locations in Andhra Pradesh for investments.
This emerged after a meeting between the Director-General of UK Trade and Investment Department and State industry department officials. Areas of life sciences, aviation, defence and high-tech manufacturing, green technologies, gas and energy, IT hardware and food processing were identified as potential sectors for mutual cooperation. Kumar Iyer, Deputy High Commissioner and Director-General of UK Trade and Investment accompanied by Andrew McAllister, British Deputy High Commissioner in Hyderabad met K. Pradeep Chandra, Principal Secretary, Industries and Commerce Department in the Secretariat today.
Kumar Iyer informed that the British Government has identified Andhra Pradesh as one of the preferred states in India for investments.
In turn, the State officials explained the advantages of Andhra Pradesh as an investment destination with a natural resource base and industrial parks spread all over the State.
Commodity-wise freight revenue by railways goes up by 7.90 per cent during April-July 2013
New Delhi: The Railways have generated Rs. 29690.16 crore of revenue earnings from commodity-wise freight traffic during 1st April to 31st July 2013 as compared to Rs. 27515.90 crore during the corresponding period last year, registering an increase of 7.90 per cent. Railways carried 343.00 million tonnes of commodity-wise freight traffic during April-July 2013 as compared to 327.02 million tonnes carried during the corresponding period last year, registering an increase of 4.89 per cent.
Out of the total earnings of Rs. 6894.61 crore from commodity-wise freight traffic during the month of July 2013, Rs. 3023.64 crore came from transportation of 42.36 million tonnes of coal, followed by Rs. 625.98 crore from 9.97 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 564.47 crore from 7.98 million tonnes of cement, Rs. 539.66 crore from 4.34 million tonnes of foodgrains, Rs. 447.44 crore from 3.81 million tonnes of petroleum oil and lubricant (POL), Rs. 413.24 crore from 3.09 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 369.53 crore from 4.09 million tonnes of fertilizers, Rs. 112.12 crore from 1.38 million tonnes of raw material for steel plants except iron ore, Rs. 373.29 crore from 3.66 million tonnes by container service and Rs. 425.24 crore from 5.53 million tonnes of other goods.
Out of the total earnings of Rs. 6894.61 crore from commodity-wise freight traffic during the month of July 2013, Rs. 3023.64 crore came from transportation of 42.36 million tonnes of coal, followed by Rs. 625.98 crore from 9.97 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 564.47 crore from 7.98 million tonnes of cement, Rs. 539.66 crore from 4.34 million tonnes of foodgrains, Rs. 447.44 crore from 3.81 million tonnes of petroleum oil and lubricant (POL), Rs. 413.24 crore from 3.09 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 369.53 crore from 4.09 million tonnes of fertilizers, Rs. 112.12 crore from 1.38 million tonnes of raw material for steel plants except iron ore, Rs. 373.29 crore from 3.66 million tonnes by container service and Rs. 425.24 crore from 5.53 million tonnes of other goods.
NMIMS varsity teams up with UK’s Warwick
Mumbai: SVKM’S Narsee Monjee Institute of Management Studies has set up a centre for manufacturing excellence in collaboration with UK's Warwick University. The programmes are being designed and will be started shortly. The faculty of NMIMS University’s School of Business Management and Mukesh Patel School of Technology Management and Engineering are to work along with the faculty of the Warwick University, UK, to deliver the programmes and carry out research and consultancy.
In a statement, Rajan Saxena, Vice-Chancellor, NMIMS University, said: “India can strengthen its competitive position in the world economy only when all three engines of its economy - namely manufacturing, agriculture and services, are boosted and they work in tandem.''
The centre will offer specially designed Master’s and Doctoral programmes. It will also have partnerships with leading manufacturing corporate, to educate and train engineers, managers and leaders in manufacturing, as well as to carry out research in manufacturing excellence and to develop leadership in the sector.
In a statement, Rajan Saxena, Vice-Chancellor, NMIMS University, said: “India can strengthen its competitive position in the world economy only when all three engines of its economy - namely manufacturing, agriculture and services, are boosted and they work in tandem.''
The centre will offer specially designed Master’s and Doctoral programmes. It will also have partnerships with leading manufacturing corporate, to educate and train engineers, managers and leaders in manufacturing, as well as to carry out research in manufacturing excellence and to develop leadership in the sector.
Anti-infectives, respiratory drugs drive pharma growth in July
New Delhi: Despite the implementation of the new drug pricing policy, secondary drug sales remained resilient in July, growing 9.3 per cent (excluding free units) over the previous year. This is according to data compiled by pharma research firm AIOCD AWACS. Higher sales of anti-infective and respiratory drugs helped the growth, even as chronic (long-duration) therapies such as anti-diabetes and cardiovascular lagged.
In the listed space, the highest growth was clocked by Biocon (48.7 per cent) and AstraZeneca (44.3 per cent), albeit on a low base. A good monsoon aided demand for anti-infective, respiratory and anti-malarial drugs. Anti-infective drug producer Alembic Pharma (18.4 per cent), and respiratory players Cipla (18 per cent) and Glenmark Pharma (18.4 per cent) posted healthy growth during the month, ahead of the market. This also helped anti-malarial drug major IPCA Labs post 16.7 per cent growth for the month.
The ban on anti-diabetic drug pioglitazone in June impacted the growth of the anti-diabetes segment. Companies such as Sun Pharma and Lupin, which derive significant sales from pioglitazone, were affected by the move.
However, with the revocation of the ban earlier this month, growth may improve hereon.
Elder Pharma and Panacea Biotech topped the losers’ list, declining 13.1 per cent and 7.7 per cent respectively. Drug sales by multinationals — GlaxoSmithkline Pharma and Sanofi India — declined during the month due to price cuts under the new pricing policy.
The Government has extended the deadline for re-labelling the drugs, to adjust for the price declines under the new policy, by an additional 30 days. This, along with the revocation of ban on piogliatzone, should provide some respite to the Indian pharma market.
In the listed space, the highest growth was clocked by Biocon (48.7 per cent) and AstraZeneca (44.3 per cent), albeit on a low base. A good monsoon aided demand for anti-infective, respiratory and anti-malarial drugs. Anti-infective drug producer Alembic Pharma (18.4 per cent), and respiratory players Cipla (18 per cent) and Glenmark Pharma (18.4 per cent) posted healthy growth during the month, ahead of the market. This also helped anti-malarial drug major IPCA Labs post 16.7 per cent growth for the month.
The ban on anti-diabetic drug pioglitazone in June impacted the growth of the anti-diabetes segment. Companies such as Sun Pharma and Lupin, which derive significant sales from pioglitazone, were affected by the move.
However, with the revocation of the ban earlier this month, growth may improve hereon.
Elder Pharma and Panacea Biotech topped the losers’ list, declining 13.1 per cent and 7.7 per cent respectively. Drug sales by multinationals — GlaxoSmithkline Pharma and Sanofi India — declined during the month due to price cuts under the new pricing policy.
The Government has extended the deadline for re-labelling the drugs, to adjust for the price declines under the new policy, by an additional 30 days. This, along with the revocation of ban on piogliatzone, should provide some respite to the Indian pharma market.
Green infra acquires majority stake in TVS Energy
New Delhi: Green Infra Limited (Green Infra), the renewable energy arm of IDFC acquired a majority stake in TVS Energy. Through this acquisition, Green Infra has added to its portfolio 59.75 mw of windfarms across Tamil Nadu and Maharashtra with a commitment to continue to supply power to the TVS Group. This acquisition takes Green Infra's operating capacity to 377 mw and the company is on track to reach 500 mw by March 2014.
"We are delighted to partner with TVS Group and to become the provider of clean, green energy to the group. We remain extremely bullish on the future of renewable energy in the country and are aggressively investing in expanding our footprint"", said Shiv Nimbargi, MD and CEO of Green Infra.
Incorporated in April 2008 by the private equity funds of IDFC Alternatives, Green Infra is one of the leading clean energy independent power producer in both solar and wind segment in the country.
"We are delighted to partner with TVS Group and to become the provider of clean, green energy to the group. We remain extremely bullish on the future of renewable energy in the country and are aggressively investing in expanding our footprint"", said Shiv Nimbargi, MD and CEO of Green Infra.
Incorporated in April 2008 by the private equity funds of IDFC Alternatives, Green Infra is one of the leading clean energy independent power producer in both solar and wind segment in the country.
Bombardier to explore market for CSeries in India
Chennai: Commercial aircraft manufacturer Bombardier Inc has said its 100-160-seater CSeries is expected to take off soon in the Indian skies and that the company is working with the government to find ways for financial institutions to become lessors for airlines.
This comes at a time when Indian airlines are looking at expanding operations to more Tier-II and -III cities.
“I am very excited that eventually we can bring in the CSeries into India. It can offer the latest technology with lower cost of operation, especially as the aviation industry is developing to Tier-II and -III cities,” said Mike Arcamone, president-commercial aircraft, Bombardier.
According to reports, the company has pushed back the first flight of the CSeries three times and recently said it was ready to fly in weeks.
The company has not revealed any timeline to launch the new product in India, but said it would be launched soon, “if the customer demands it”.
Bombardier has already started talks with Indian airlines on the advantages of CSeries aircraft, said Arcamone, who was here.
Advantages
The company claims the CSeries has 12 per cent cost advantage, compared with the new generation aircraft, and compared to old generation plans, the cost advantage is 20 per cent.
So far, Bombardier Commercial Aircraft, which opened its regional sales office in Mumbai three years ago, has handed over 15 aircraft to SpiceJet and three CRJ 700 carriers to Air India. “Right now, SpiceJet is a great advocate for our aircraft,” Arcamone said. The airline has an option to buy 15 more aircraft from Bombardier. Asked about the company’s market share in India, Torbjorn Karlsson, vice-president, sales, Asia Pacific of Bombardier Commercial Aircraft, said: “We don’t calculate the market share per country. We have the 15 aircraft with SpiceJet, and three CRJ 700 with Air India. If you look at what same type of product with our competition, we have a market of 45-50 per cent.” The company, which sees a consolidation in the aviation sector in the US and a rather mature market in Europe, is focusing on three countries inclduing India for its future business.
“India is very important for our future growth because of the opportunities that are present. Outside North America, South America and Europe, there are three areas I am really focusing — India, Russia and China,” said Arcamone. However, one of the developments the company expects to happen in India is the financial support, which could be in a way of banks acting as lessors.
Though there are some small scale lessors in India, the banks in the country are yet to play a major role in the sector. “I would like to see one of my top 15 lessors to be from India,” he said.
This comes at a time when Indian airlines are looking at expanding operations to more Tier-II and -III cities.
“I am very excited that eventually we can bring in the CSeries into India. It can offer the latest technology with lower cost of operation, especially as the aviation industry is developing to Tier-II and -III cities,” said Mike Arcamone, president-commercial aircraft, Bombardier.
According to reports, the company has pushed back the first flight of the CSeries three times and recently said it was ready to fly in weeks.
The company has not revealed any timeline to launch the new product in India, but said it would be launched soon, “if the customer demands it”.
Bombardier has already started talks with Indian airlines on the advantages of CSeries aircraft, said Arcamone, who was here.
Advantages
The company claims the CSeries has 12 per cent cost advantage, compared with the new generation aircraft, and compared to old generation plans, the cost advantage is 20 per cent.
So far, Bombardier Commercial Aircraft, which opened its regional sales office in Mumbai three years ago, has handed over 15 aircraft to SpiceJet and three CRJ 700 carriers to Air India. “Right now, SpiceJet is a great advocate for our aircraft,” Arcamone said. The airline has an option to buy 15 more aircraft from Bombardier. Asked about the company’s market share in India, Torbjorn Karlsson, vice-president, sales, Asia Pacific of Bombardier Commercial Aircraft, said: “We don’t calculate the market share per country. We have the 15 aircraft with SpiceJet, and three CRJ 700 with Air India. If you look at what same type of product with our competition, we have a market of 45-50 per cent.” The company, which sees a consolidation in the aviation sector in the US and a rather mature market in Europe, is focusing on three countries inclduing India for its future business.
“India is very important for our future growth because of the opportunities that are present. Outside North America, South America and Europe, there are three areas I am really focusing — India, Russia and China,” said Arcamone. However, one of the developments the company expects to happen in India is the financial support, which could be in a way of banks acting as lessors.
Though there are some small scale lessors in India, the banks in the country are yet to play a major role in the sector. “I would like to see one of my top 15 lessors to be from India,” he said.
Investments via P-Notes grew to Rs 1.48 trillion in July 2013
New Delhi: Investments in Indian markets (equity, debt and derivatives) through participatory notes (P-Notes) increased to Rs 1.48 trillion (US$ 23.74 billion) at the end of July 2013, according to the data released by Securities and Exchange Board of India (SEBI).
P-Notes allows high networth individuals (HNI), hedge funds and other foreign institutions to invest in Indian markets through registered foreign institutional investors (FII), while saving on time and costs associated with direct registrations.
The FIIs investments through P-Notes registered a growth of 11.45 per cent in July 2013 as compared to 10.93 per cent in June 2013.
The value of P-Notes issue
P-Notes allows high networth individuals (HNI), hedge funds and other foreign institutions to invest in Indian markets through registered foreign institutional investors (FII), while saving on time and costs associated with direct registrations.
The FIIs investments through P-Notes registered a growth of 11.45 per cent in July 2013 as compared to 10.93 per cent in June 2013.
The value of P-Notes issue
SingTel to pay $302 m for a larger slice of Bharti Airtel
New Delhi: Singapore Telecommunications Ltd (SingTel) will increase its effective stake in Bharti Airtel to 32.34 per cent from 30.76 per cent. South-East Asia’s biggest telecom company will buy 3.62 per cent share of Bharti Telecom for $302 million (Rs 1,851 crore). Bharti Telecom holds 43.57 per cent stake in Bharti Airtel.
“The acquisition would allow SingTel to increase its effective stake in Bharti Airtel, and is in line with SingTel’s strategic focus on maximising the value of its existing businesses, which includes reviewing opportunities to increase shareholdings in existing associates,” the Singapore firm said in a statement
SingTel will buy 788,538 shares of Bharti Telecom from MacRitchie Investments Pte. This will increase SingTel’s share in the Indian holding company to 39.78 per cent from 36.16 per cent. The deal is expected to be completed by August 28, according to SingTel.
This is the second equity deal for Bharti Airtel this year. In May, Qatar Foundation picked up 5 per cent in Bharti Airtel for $1.26 billion. Bharti had issued 19.9 crore new shares to the Foundation at Rs 340 a share.
The SingTel deal indicates that foreign investors still see the Indian telecom sector as an attractive destination despite the regulatory uncertainties. Bharti Airtel will see at least one more equity deal in the next 12 months when Vodafone decides to sell the 4.4 per cent stake it holds in Airtel. Under the new mergers and acquisitions rules governing the telecom sector, a company cannot hold stake in two different operating firms.
“The acquisition would allow SingTel to increase its effective stake in Bharti Airtel, and is in line with SingTel’s strategic focus on maximising the value of its existing businesses, which includes reviewing opportunities to increase shareholdings in existing associates,” the Singapore firm said in a statement
SingTel will buy 788,538 shares of Bharti Telecom from MacRitchie Investments Pte. This will increase SingTel’s share in the Indian holding company to 39.78 per cent from 36.16 per cent. The deal is expected to be completed by August 28, according to SingTel.
This is the second equity deal for Bharti Airtel this year. In May, Qatar Foundation picked up 5 per cent in Bharti Airtel for $1.26 billion. Bharti had issued 19.9 crore new shares to the Foundation at Rs 340 a share.
The SingTel deal indicates that foreign investors still see the Indian telecom sector as an attractive destination despite the regulatory uncertainties. Bharti Airtel will see at least one more equity deal in the next 12 months when Vodafone decides to sell the 4.4 per cent stake it holds in Airtel. Under the new mergers and acquisitions rules governing the telecom sector, a company cannot hold stake in two different operating firms.
Tata Steel to launch 30 new products in Europe this financial year
Mumbai: Tata Steel is set to launch 30 new products in Europe this financial year. “We launched 17 steel products in the European market in FY13 and we will launch 30 more products this year,” Chairman Cyrus Mistry said at the company’s 106th annual general meeting here on Wednesday.
In Europe, demand for steel has been declining since Tata Steel acquired Corus, now Tata Steel Europe, in 2007. Following the acquisition, Tata Steel has about 45 subsidiaries. “We plan to rationalise the subsidiaries acquired,” Mistry said. The company also planned to increase steel deliveries to customers in the small and medium enterprise segment, Mistry added.
Tata Steel has commissioned a three-million-tonne (mt) plant in Jamshedpur. On the first phase of another three-mt plant in Kalinganagar, Odisha, it has spent Rs 10,000 crore so far. The plant was scheduled to be commissioned in the latter part of FY15, Mistry told shareholders at the meeting.
The company reported a consolidated net profit of about Rs 1,000 crore for the quarter ended Jun, primarily owing to high deferred tax.
In Europe, demand for steel has been declining since Tata Steel acquired Corus, now Tata Steel Europe, in 2007. Following the acquisition, Tata Steel has about 45 subsidiaries. “We plan to rationalise the subsidiaries acquired,” Mistry said. The company also planned to increase steel deliveries to customers in the small and medium enterprise segment, Mistry added.
Tata Steel has commissioned a three-million-tonne (mt) plant in Jamshedpur. On the first phase of another three-mt plant in Kalinganagar, Odisha, it has spent Rs 10,000 crore so far. The plant was scheduled to be commissioned in the latter part of FY15, Mistry told shareholders at the meeting.
The company reported a consolidated net profit of about Rs 1,000 crore for the quarter ended Jun, primarily owing to high deferred tax.
Ministry of Power and Ministry of Water Resources to work jointly on speedy technical clearances of power projects
New Delhi: Ministry of Power and Ministry of Water Resources have drawn up a framework for speedy technical clearances to power projects by Central Electricity Authority (CEA) and Central Water Commission (CWC). A high level meeting was held between M/o State for Power (I/c) , Mr Jyotiraditya M. Scindia and Minister of Water Resources, Mr Harish Rawat in New Delhi today.
It was decided that issues pertaining to 24 items like hydrology, dam design, inter state, gates etc should be cleared immediately through close coordination between CEA and CWC.
It was also decided to hold joint monthly reviews with the developers of the projects to resolve their pending issues in the implementation of the power projects. Timelines for clearances to various components are to be decided at the next joint meeting between CEA, CWC and the developers.
The progress report of the clearances should be submitted to the ministries concerned.
Periodic meetings will be held with all the stakeholders in order to have a proactive approach to clearances. Also, the process of consultations will be continuous to ensure timely technical clearances to the projects.
It was decided that issues pertaining to 24 items like hydrology, dam design, inter state, gates etc should be cleared immediately through close coordination between CEA and CWC.
It was also decided to hold joint monthly reviews with the developers of the projects to resolve their pending issues in the implementation of the power projects. Timelines for clearances to various components are to be decided at the next joint meeting between CEA, CWC and the developers.
The progress report of the clearances should be submitted to the ministries concerned.
Periodic meetings will be held with all the stakeholders in order to have a proactive approach to clearances. Also, the process of consultations will be continuous to ensure timely technical clearances to the projects.
Govt plans Rs 43,000-cr green energy corridor
New Delhi: To facilitate flow of renewable energy into the national grid, the Government plans to roll out a Rs 43,000-crore ‘green energy corridor’ project.
The project will be implemented with the assistance of Germany, which has promised to provide development and technical assistance of €1 billion as soft credit,” said Ratan P. Watal, Secretary, Ministry of New & Renewable Energy.
Speaking at the ‘National Consultation of Stakeholders regarding Development of Offshore Wind Energy in India’ here on Wednesday, he said the Government is committed to providing a conducive environment for harnessing offshore wind energy.
He said India’s onshore wind energy deployment had crossed 19.6 GW attracting $16.5 billion of investment in 2012 and it is estimated that by 2030 installed capacity will reach 191 GW.
He further said a National Offshore Wind Energy Authority, under the aegis of MNRE, will be constituted shortly. The authority will act as the nodal agency for offshore wind projects.
The authority will carry out resource assessment and surveys in the Exclusive Economic Zones (EEZ) and simultaneously enter into contracts with project developers for offshore wind energy projects within the territorial waters (12 nautical miles).
Single window
A single window agency, it will coordinate with Ministries/Departments concerned for clearances. However, the authority will only act as a facilitator for getting clearance and application for clearance will be dealt in entirety by the Ministry/Department concerned, Watal said.
A January 2012 study by Scottish Development International had indicated the potential to establish around one GW wind farm each along the coastline of Rameswaram and Kanyakumari in Tamil Nadu. India’s offshore wind energy capacity is estimated at 350 GW.
The project will be implemented with the assistance of Germany, which has promised to provide development and technical assistance of €1 billion as soft credit,” said Ratan P. Watal, Secretary, Ministry of New & Renewable Energy.
Speaking at the ‘National Consultation of Stakeholders regarding Development of Offshore Wind Energy in India’ here on Wednesday, he said the Government is committed to providing a conducive environment for harnessing offshore wind energy.
He said India’s onshore wind energy deployment had crossed 19.6 GW attracting $16.5 billion of investment in 2012 and it is estimated that by 2030 installed capacity will reach 191 GW.
He further said a National Offshore Wind Energy Authority, under the aegis of MNRE, will be constituted shortly. The authority will act as the nodal agency for offshore wind projects.
The authority will carry out resource assessment and surveys in the Exclusive Economic Zones (EEZ) and simultaneously enter into contracts with project developers for offshore wind energy projects within the territorial waters (12 nautical miles).
Single window
A single window agency, it will coordinate with Ministries/Departments concerned for clearances. However, the authority will only act as a facilitator for getting clearance and application for clearance will be dealt in entirety by the Ministry/Department concerned, Watal said.
A January 2012 study by Scottish Development International had indicated the potential to establish around one GW wind farm each along the coastline of Rameswaram and Kanyakumari in Tamil Nadu. India’s offshore wind energy capacity is estimated at 350 GW.
Reliance Industries to explore investment opportunities in Iraqi oil fields
Mumbai: Reliance Industries, the country's largest privately owned company, is exploring investment opportunities in the oil and gas fields of Iraq, chairman Mukesh Ambani said. The move comes exactly a year after the company divested its holding in two blocks in Kurdistan amid threats of blacklisting by the war-torn country.
"Petroleum minister Veerappa Moily has asked us to consider investing in Iraq," Ambani said on the sidelines of a programme in Mumbai on Wednesday, which was attended by Iraq's deputy prime minister Hussain Saleh al-Shahristani. "We are looking at the Nasiriya giant oilfield and three other oil and gas blocks in the Middle Furat region," Ambani said.
He, however, stressed that Reliance was only evaluating the possibilities and that no decision has yet been taken.
"We are keenly looking at Iraq's resources...we have not yet decided on investing in the Nasiriya giant oil field and the accompanying refinery project but all options are being evaluated," Ambani said.
In March, Iraq had shortlisted Reliance IndustriesBSE -2.54 % and six other global energy firms for developing the Nasiriya oilfield and building an associated 300,000 barrels per day refinery.
"We are glad that companies like Reliance Industries are taking a keen interest in Iraq, the bidding process for these blocks has started and we hope to close it soon," Shahristani said. After beating sanction-hit Iran to become the second-largest crude oil supplier to India, Iraq is suddenly shining bright on the Indian energy radar. Petroleum minister M Veerappa Moily, who visited Iraq last month, came back with a bagful of Iraqi offers to invest in local oil and gas acreages.
On top of the list were three discovered oil blocks — Kifil, West Kifil and Merjan — in the Middle Furat oilfields, which Iraq offered to Indian energy companies on a nomination basis, which means there will be no bidding for these blocks. This is the first instance in the recent past that an oil-rich Middle East nation has offered oilfields to India without mandating a formal bidding process.
Ambani said that his company is interested in Iraq's resources. "We are interested in Iraq's resources as we are the world over, but we remain India focused as 90% of our energy needs are imported," he said.
In 2007, Reliance Industries' Dubai-based arm, Reliance Exploration and Production, had acquired 100% stake in Rovi and Sarta blocks of Kurdistan. But the then Iraqi government did not appreciate the award of contract to Reliance by the autonomous Kurdistan region and threatened to blacklist the company.
In July last year, Reliance sold its entire holding in the two blocks to Chevron. "We have divested all our assets in Kurdistan," Ambani said.
"Petroleum minister Veerappa Moily has asked us to consider investing in Iraq," Ambani said on the sidelines of a programme in Mumbai on Wednesday, which was attended by Iraq's deputy prime minister Hussain Saleh al-Shahristani. "We are looking at the Nasiriya giant oilfield and three other oil and gas blocks in the Middle Furat region," Ambani said.
He, however, stressed that Reliance was only evaluating the possibilities and that no decision has yet been taken.
"We are keenly looking at Iraq's resources...we have not yet decided on investing in the Nasiriya giant oil field and the accompanying refinery project but all options are being evaluated," Ambani said.
In March, Iraq had shortlisted Reliance IndustriesBSE -2.54 % and six other global energy firms for developing the Nasiriya oilfield and building an associated 300,000 barrels per day refinery.
"We are glad that companies like Reliance Industries are taking a keen interest in Iraq, the bidding process for these blocks has started and we hope to close it soon," Shahristani said. After beating sanction-hit Iran to become the second-largest crude oil supplier to India, Iraq is suddenly shining bright on the Indian energy radar. Petroleum minister M Veerappa Moily, who visited Iraq last month, came back with a bagful of Iraqi offers to invest in local oil and gas acreages.
On top of the list were three discovered oil blocks — Kifil, West Kifil and Merjan — in the Middle Furat oilfields, which Iraq offered to Indian energy companies on a nomination basis, which means there will be no bidding for these blocks. This is the first instance in the recent past that an oil-rich Middle East nation has offered oilfields to India without mandating a formal bidding process.
Ambani said that his company is interested in Iraq's resources. "We are interested in Iraq's resources as we are the world over, but we remain India focused as 90% of our energy needs are imported," he said.
In 2007, Reliance Industries' Dubai-based arm, Reliance Exploration and Production, had acquired 100% stake in Rovi and Sarta blocks of Kurdistan. But the then Iraqi government did not appreciate the award of contract to Reliance by the autonomous Kurdistan region and threatened to blacklist the company.
In July last year, Reliance sold its entire holding in the two blocks to Chevron. "We have divested all our assets in Kurdistan," Ambani said.
Isuzu to start production at Chennai plant of HM
Kolkata: Isuzu Motors India would start contract manufacturing of its sports utility vehicles and pick-up trucks at Hindustan Motors’ Chennai plant from December.
Hind Motors in a note to the accounts for April-June quarter said the manufacturing was expected to start from December this year. In June, both the companies had signed an agreement for this.
Hind Motors in a note to the accounts for April-June quarter said the manufacturing was expected to start from December this year. In June, both the companies had signed an agreement for this.
Ashwagandha gets US patent for vaccine adjuvant
Mumbai: A group of researchers from Pune University and Serum Institute have received a patent on the use of Ashwagandha as a vaccine adjuvant, or component that helps improve its efficacy.
A medicinal herb, Ashwagandha is also referred to as Indian Gensing.
In a project supported by the Department of Science and Technology, the research was part of a project to develop “botanical immunomodulators” as adjuvants to improve vaccine efficacy, said a researcher from Serum.
In the past, the industry used aluminium salts as an adjuvant, but as newer vaccines are developed, industry is also looking for alternatives, he added.
In fact, the finding would be used in new vaccines such as the pentavalent vaccine targeting meningitis, or those against dengue and pneumococcal diseases, said Serum Executive Director Suresh Jadhav.
About nine herbs were studied, before research found the required property in ashwagandha (Withania somnifera) and more work was done to understand in what ratio it could be used in a vaccine, a researcher said.
Unlike earlier instances where companies tried to patent turmeric, for example, the researcher clarified, the patent here was in an area not claimed by ayurveda.
VACCINE APPLICATIONS
Further, he said, that all known claims on herbs have been digitised and a patent would not have been granted in the US, if the latest claim was similar to existing knowledge in India or China.
The adjuvant showed properties where it could be used with other licensed adjuvants in T-cell dependent antigens such as diphtheria, tetanus and pertusssis group of vaccines.
The project was supported by DST and Serum Institute of India with total financial outlay of Rs 90 lakh spread over 3 years.
The research project was completed in 2007, but development work continued at Serum Institute.
Patents were filed in India and in the US.
The researchers receive their patent in India in 2007, but the US patent was granted on August 6.
A medicinal herb, Ashwagandha is also referred to as Indian Gensing.
In a project supported by the Department of Science and Technology, the research was part of a project to develop “botanical immunomodulators” as adjuvants to improve vaccine efficacy, said a researcher from Serum.
In the past, the industry used aluminium salts as an adjuvant, but as newer vaccines are developed, industry is also looking for alternatives, he added.
In fact, the finding would be used in new vaccines such as the pentavalent vaccine targeting meningitis, or those against dengue and pneumococcal diseases, said Serum Executive Director Suresh Jadhav.
About nine herbs were studied, before research found the required property in ashwagandha (Withania somnifera) and more work was done to understand in what ratio it could be used in a vaccine, a researcher said.
Unlike earlier instances where companies tried to patent turmeric, for example, the researcher clarified, the patent here was in an area not claimed by ayurveda.
VACCINE APPLICATIONS
Further, he said, that all known claims on herbs have been digitised and a patent would not have been granted in the US, if the latest claim was similar to existing knowledge in India or China.
The adjuvant showed properties where it could be used with other licensed adjuvants in T-cell dependent antigens such as diphtheria, tetanus and pertusssis group of vaccines.
The project was supported by DST and Serum Institute of India with total financial outlay of Rs 90 lakh spread over 3 years.
The research project was completed in 2007, but development work continued at Serum Institute.
Patents were filed in India and in the US.
The researchers receive their patent in India in 2007, but the US patent was granted on August 6.
M&M plans Rs 10,000-cr investment, net rises
Mumbai: Tractor and utility vehicle market leader Mahindra & Mahindra (M&M) on Tuesday posted a 29 per cent rise in net profit for the quarter ended June, helped by higher sales of tractors and tighter control measures. The Mumbai-based company reported a standalone net profit of Rs 937 crore during the quarter against Rs 725 crore in the same quarter last year.
The fall in its passenger vehicle’s sales was made up by a buoyant demand for tractors. Helped by a favourable monsoon, M&M tractor sales rose 26 per cent in the first quarter at 71,696 units against 56,861 units in the same quarter last year.
ALSO READ: q1-profits-113081301186_1.html" target="_blank">M&M: Growth in tractor sales & other income drive Q1 profits
Pawan Goenka, president (automotive and farm equipment sectors), said, “The tractor segment was pegged to post a growth of five-six per cent for the year, but we now expect it to finish with a double digit growth. However, we have no clear sign of any turnaround in the passenger vehicle segment.”
Other factors such as no increase in commodity prices, lesser focus on discounting and marginal price hike during the quarter helped the company in improving margins. In line with other companies, M&M, too, got a boost from income received as dividend during the quarter. Together with the dividend, a total of Rs 164 crore was received under the head ‘other income’ against Rs 60 crore in the year-ago period. The company posted net sales of Rs 9,906 crore for the reporting quarter as compared to Rs 9,247 crore posted in the same quarter last year. Operating margins stood at 14.4 per cent as against 13.9 per cent.
ALSO READ: M&M gains 3.8% amid MSCI addition talk
At the 67th annual general meeting, Anand Mahindra, the new chairman, said the company would invest Rs 10,000 crore in the next three years towards new product development and the setting up of a new plant. The company is making investments towards new products including a new compact sports utility vehicle, a new Scorpio, electric variants of some of the existing models and new models in partnership with its Korean subsidiary.
The fall in its passenger vehicle’s sales was made up by a buoyant demand for tractors. Helped by a favourable monsoon, M&M tractor sales rose 26 per cent in the first quarter at 71,696 units against 56,861 units in the same quarter last year.
ALSO READ: q1-profits-113081301186_1.html" target="_blank">M&M: Growth in tractor sales & other income drive Q1 profits
Pawan Goenka, president (automotive and farm equipment sectors), said, “The tractor segment was pegged to post a growth of five-six per cent for the year, but we now expect it to finish with a double digit growth. However, we have no clear sign of any turnaround in the passenger vehicle segment.”
Other factors such as no increase in commodity prices, lesser focus on discounting and marginal price hike during the quarter helped the company in improving margins. In line with other companies, M&M, too, got a boost from income received as dividend during the quarter. Together with the dividend, a total of Rs 164 crore was received under the head ‘other income’ against Rs 60 crore in the year-ago period. The company posted net sales of Rs 9,906 crore for the reporting quarter as compared to Rs 9,247 crore posted in the same quarter last year. Operating margins stood at 14.4 per cent as against 13.9 per cent.
ALSO READ: M&M gains 3.8% amid MSCI addition talk
At the 67th annual general meeting, Anand Mahindra, the new chairman, said the company would invest Rs 10,000 crore in the next three years towards new product development and the setting up of a new plant. The company is making investments towards new products including a new compact sports utility vehicle, a new Scorpio, electric variants of some of the existing models and new models in partnership with its Korean subsidiary.
CDC and Abraaj Group invest $17.5 million in AP-based Rainbow Hospitals chain
New Delhi: Global development finance institution CDC Group and Dubai-based private equity investor Abraaj Group have jointly invested Rs. 107.3 crore ($17.5 million), for an undisclosed stake, in Rainbow Hospitals, the UK-based government-owned institution announced on Tuesday.
Proceeds from the investment will be used by the Hyderabad-based Rainbow Hospitals to expand its presence beyond Andhra Pradesh.
The 450-bed paediatric and maternity healthcare-focused hospital chain will set up hospitals in Chennai, Pune, Visakhapatnam and Kurnool, and increase its number of beds to 1,000 by 2017. The capital infusion is also expected to support the creation of as many as 3000 new jobs, up from its present employment figure of about 1,000.
"In parallel, we would also like to develop tertiary paediatric care in tier-2 like Vizag and Kurnool," said Ramesh Kancharla, chairman and managing director, Rainbow Hospitals.
Established in 1999, Rainbow Hospitals is India's largest specialized paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units, and one outpatient clinic in Hyderabad. The business has expanded with four centres added in the last six years.
"With employment in the group currently at around 1,000 people, we expect this to grow as much as four times over the course of our investment, led by the rapid growth in the Indian healthcare market," pointed out Srini Nagarajan, regional director for CDC's South Asia operations.
He also added that with demand expected to grow at around 15% per annum over the next decade, it was clear that the gap in provision of healthcare in India will need to be plugged by the private sector.
The latest transaction is CDC's first direct equity investment in India since the launch of its new investment strategy in late 2012.
Under its new strategy, announced in September last year, CDC now provides direct debt and equity investment to businesses in South Asia and Africa, while continuing to act as a fund-of-funds investor.
From 2004 to 2010, it operated primarily as a fund-of-funds investor, investing in companies through intermediary fund managers.
The Rainbow Hospitals investment also builds upon Abraaj Group's long-standing partnerships with healthcare institutions in South Asia and represents its sixth healthcare investment in the region.
"The Abraaj Group has been an early and committed investor in the healthcare space and this transaction represents our 28th investment globally in this sector," said Balaji Srinivas, managing director at the Abraaj Group.
Proceeds from the investment will be used by the Hyderabad-based Rainbow Hospitals to expand its presence beyond Andhra Pradesh.
The 450-bed paediatric and maternity healthcare-focused hospital chain will set up hospitals in Chennai, Pune, Visakhapatnam and Kurnool, and increase its number of beds to 1,000 by 2017. The capital infusion is also expected to support the creation of as many as 3000 new jobs, up from its present employment figure of about 1,000.
"In parallel, we would also like to develop tertiary paediatric care in tier-2 like Vizag and Kurnool," said Ramesh Kancharla, chairman and managing director, Rainbow Hospitals.
Established in 1999, Rainbow Hospitals is India's largest specialized paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units, and one outpatient clinic in Hyderabad. The business has expanded with four centres added in the last six years.
"With employment in the group currently at around 1,000 people, we expect this to grow as much as four times over the course of our investment, led by the rapid growth in the Indian healthcare market," pointed out Srini Nagarajan, regional director for CDC's South Asia operations.
He also added that with demand expected to grow at around 15% per annum over the next decade, it was clear that the gap in provision of healthcare in India will need to be plugged by the private sector.
The latest transaction is CDC's first direct equity investment in India since the launch of its new investment strategy in late 2012.
Under its new strategy, announced in September last year, CDC now provides direct debt and equity investment to businesses in South Asia and Africa, while continuing to act as a fund-of-funds investor.
From 2004 to 2010, it operated primarily as a fund-of-funds investor, investing in companies through intermediary fund managers.
The Rainbow Hospitals investment also builds upon Abraaj Group's long-standing partnerships with healthcare institutions in South Asia and represents its sixth healthcare investment in the region.
"The Abraaj Group has been an early and committed investor in the healthcare space and this transaction represents our 28th investment globally in this sector," said Balaji Srinivas, managing director at the Abraaj Group.
CDC and Abraaj Group invest $17.5 million in AP-based Rainbow Hospitals chain
New Delhi: Global development finance institution CDC Group and Dubai-based private equity investor Abraaj Group have jointly invested Rs. 107.3 crore ($17.5 million), for an undisclosed stake, in Rainbow Hospitals, the UK-based government-owned institution announced on Tuesday.
Proceeds from the investment will be used by the Hyderabad-based Rainbow Hospitals to expand its presence beyond Andhra Pradesh.
The 450-bed paediatric and maternity healthcare-focused hospital chain will set up hospitals in Chennai, Pune, Visakhapatnam and Kurnool, and increase its number of beds to 1,000 by 2017. The capital infusion is also expected to support the creation of as many as 3000 new jobs, up from its present employment figure of about 1,000.
"In parallel, we would also like to develop tertiary paediatric care in tier-2 like Vizag and Kurnool," said Ramesh Kancharla, chairman and managing director, Rainbow Hospitals.
Established in 1999, Rainbow Hospitals is India's largest specialized paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units, and one outpatient clinic in Hyderabad. The business has expanded with four centres added in the last six years.
"With employment in the group currently at around 1,000 people, we expect this to grow as much as four times over the course of our investment, led by the rapid growth in the Indian healthcare market," pointed out Srini Nagarajan, regional director for CDC's South Asia operations.
He also added that with demand expected to grow at around 15% per annum over the next decade, it was clear that the gap in provision of healthcare in India will need to be plugged by the private sector.
The latest transaction is CDC's first direct equity investment in India since the launch of its new investment strategy in late 2012.
Under its new strategy, announced in September last year, CDC now provides direct debt and equity investment to businesses in South Asia and Africa, while continuing to act as a fund-of-funds investor.
From 2004 to 2010, it operated primarily as a fund-of-funds investor, investing in companies through intermediary fund managers.
The Rainbow Hospitals investment also builds upon Abraaj Group's long-standing partnerships with healthcare institutions in South Asia and represents its sixth healthcare investment in the region.
"The Abraaj Group has been an early and committed investor in the healthcare space and this transaction represents our 28th investment globally in this sector," said Balaji Srinivas, managing director at the Abraaj Group.
Proceeds from the investment will be used by the Hyderabad-based Rainbow Hospitals to expand its presence beyond Andhra Pradesh.
The 450-bed paediatric and maternity healthcare-focused hospital chain will set up hospitals in Chennai, Pune, Visakhapatnam and Kurnool, and increase its number of beds to 1,000 by 2017. The capital infusion is also expected to support the creation of as many as 3000 new jobs, up from its present employment figure of about 1,000.
"In parallel, we would also like to develop tertiary paediatric care in tier-2 like Vizag and Kurnool," said Ramesh Kancharla, chairman and managing director, Rainbow Hospitals.
Established in 1999, Rainbow Hospitals is India's largest specialized paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units, and one outpatient clinic in Hyderabad. The business has expanded with four centres added in the last six years.
"With employment in the group currently at around 1,000 people, we expect this to grow as much as four times over the course of our investment, led by the rapid growth in the Indian healthcare market," pointed out Srini Nagarajan, regional director for CDC's South Asia operations.
He also added that with demand expected to grow at around 15% per annum over the next decade, it was clear that the gap in provision of healthcare in India will need to be plugged by the private sector.
The latest transaction is CDC's first direct equity investment in India since the launch of its new investment strategy in late 2012.
Under its new strategy, announced in September last year, CDC now provides direct debt and equity investment to businesses in South Asia and Africa, while continuing to act as a fund-of-funds investor.
From 2004 to 2010, it operated primarily as a fund-of-funds investor, investing in companies through intermediary fund managers.
The Rainbow Hospitals investment also builds upon Abraaj Group's long-standing partnerships with healthcare institutions in South Asia and represents its sixth healthcare investment in the region.
"The Abraaj Group has been an early and committed investor in the healthcare space and this transaction represents our 28th investment globally in this sector," said Balaji Srinivas, managing director at the Abraaj Group.
Cabinet approves setting up of Tax Administration Commission
New Delhi: The Union Cabinet today approved the proposal for setting up of the Tax Administration Reform Commission (TARC).
Finance Minister P. Chidambaram in his Budget Speech 2013-14 had announced a proposal to set up the Commission.
The Commission will consist of a Chairman, two full-time members and four part-time members, of which at least will be from the private sector.
The Chairman will be an eminent person having wide experience of tax administration and policy making. The two full-time members will be with a background in revenue service pertaining to Income Tax and Central Excise and Customs respectively. The term of the Commission will be 18 months.
The Commission will review the application of tax policies and tax laws in India in the context of global best practices and recommend measures to strengthen the capacity of the tax system in India that would reflect best global practices.
The Commission will help in removing ambiguity in application of tax policy and tax laws, thereby establishing a stable tax regime and a non-adversarial tax administration. The Commission will facilitate an efficient tax administrative system that would enhance the tax base as well as tax payer base.
The Union Cabinet also approved a proposal for exemption of prior approval of Cabinet for disposal/auction of immovable properties acquired by the Union Government under the provisions of Chapter XX-C of the Income Tax Act 1961.
Finance Minister P. Chidambaram in his Budget Speech 2013-14 had announced a proposal to set up the Commission.
The Commission will consist of a Chairman, two full-time members and four part-time members, of which at least will be from the private sector.
The Chairman will be an eminent person having wide experience of tax administration and policy making. The two full-time members will be with a background in revenue service pertaining to Income Tax and Central Excise and Customs respectively. The term of the Commission will be 18 months.
The Commission will review the application of tax policies and tax laws in India in the context of global best practices and recommend measures to strengthen the capacity of the tax system in India that would reflect best global practices.
The Commission will help in removing ambiguity in application of tax policy and tax laws, thereby establishing a stable tax regime and a non-adversarial tax administration. The Commission will facilitate an efficient tax administrative system that would enhance the tax base as well as tax payer base.
The Union Cabinet also approved a proposal for exemption of prior approval of Cabinet for disposal/auction of immovable properties acquired by the Union Government under the provisions of Chapter XX-C of the Income Tax Act 1961.
VLCC acquires Singapore-based wellness firm GVig
New Delhi: Making its second overseas acquisition this year, the home-grown wellness and slimming firm VLCC has bought controlling stake in Singapore-based Global Vantage Innovative Group (GVig), which manufacturers and retails beauty and wellness products.
VLCC did not disclose the deal size, but industry insiders note that the deal is in the Rs 100-Rs 120 crore range. The company had earlier this year acquired Malaysian slimming and personal care firm Wyann International. It said the latest acquisition would help in expanding its presence in the South-East Asian region.
Mukesh Luthra, Chairman, VLCC Group, told Business Line, “We have acquired 80 per cent stake in GVig. The acquisition will give us a foothold in dermatological solutions. It will also help us gain access into GVig’s wellness products, research and development laboratory and manufacturing facilities.”
GVig provides wellness solutions through its subsidiaries BelleWave Cosmetics in the skin and haircare category, Celblos Dermal Research Centre, which offers dermatological solutions, and Enavose Life Science Research, offers a range of Swiss-made skincare and body wellness solutions.
Luthra said the acquisition has been funded through a mix of debt and internal accruals.
Asked on the products positioning in the India’s $5.7 billion beauty and wellness segment, Luthra said the products would be in the masstige (mass+ prestige) category.
He said VLCC had reported a turnover of Rs 1,000 crore in fiscal year ending March 2013. “We hope to touch a turnover of Rs 1,500 crore”.
PE investor Everstone Capital has been an investor in VLCC since 2007. It has 15 per cent stake and their funds were used for scaling up its India wellness services business and VLCC’s personal care business. CLSA had exited VLCC through a management buyout.
VLCC did not disclose the deal size, but industry insiders note that the deal is in the Rs 100-Rs 120 crore range. The company had earlier this year acquired Malaysian slimming and personal care firm Wyann International. It said the latest acquisition would help in expanding its presence in the South-East Asian region.
Mukesh Luthra, Chairman, VLCC Group, told Business Line, “We have acquired 80 per cent stake in GVig. The acquisition will give us a foothold in dermatological solutions. It will also help us gain access into GVig’s wellness products, research and development laboratory and manufacturing facilities.”
GVig provides wellness solutions through its subsidiaries BelleWave Cosmetics in the skin and haircare category, Celblos Dermal Research Centre, which offers dermatological solutions, and Enavose Life Science Research, offers a range of Swiss-made skincare and body wellness solutions.
Luthra said the acquisition has been funded through a mix of debt and internal accruals.
Asked on the products positioning in the India’s $5.7 billion beauty and wellness segment, Luthra said the products would be in the masstige (mass+ prestige) category.
He said VLCC had reported a turnover of Rs 1,000 crore in fiscal year ending March 2013. “We hope to touch a turnover of Rs 1,500 crore”.
PE investor Everstone Capital has been an investor in VLCC since 2007. It has 15 per cent stake and their funds were used for scaling up its India wellness services business and VLCC’s personal care business. CLSA had exited VLCC through a management buyout.
Govt eases land requirement norms for SEZ to attract more investors
New Delhi: Government made the special economic zones attractive for the investors by notifying relaxations in the minimum area requirements and easing the exit clause for developers on Monday. In line with the announcement made by the commerce and industry minister in April, the amendment in SEZ rules will allow SEZ developers to add one product category on each additional 50 hectares of land.
There will be no minimum area required for IT SEZs, but only a minimum built up area of 1 lakh square meters for the top-7 cities, 50,000 square meters for the next 15 cities and 25,000 square meters for the rest of the cities. "The idea is to give incentives to push these IT SEZs out of the big cities and explore the less dense cities," said a commerce department official.
Multi-product SEZ's minimum land requirement has been cut to 500 hectares from 1,000 hectares. Single product SEZ's minimum land requirement has been cut to 50 hectares from 100 hectares. Multi-services SEZs will be treated on a par with single-product SEZs, with the minimum area being slashed to half from 100 hectare. This will allow multi-product SEZ developers with a minimum land requirement of 500 hectare to set up multi-services SEZ on an additional 50 hectare of land.
For SEZs to be set up exclusively for electronics hardware, agro-based food processing, biotechnology, handicrafts, the minimum area required will be 10 hectares.
Agro-based food processing SEZs are being introduced following demands by the agrarian states. SEZs allow duty-free imports or domestic procurement of goods and also provide 100% income tax exemption on export income for SEZ units for the first five years.
There will be no minimum area required for IT SEZs, but only a minimum built up area of 1 lakh square meters for the top-7 cities, 50,000 square meters for the next 15 cities and 25,000 square meters for the rest of the cities. "The idea is to give incentives to push these IT SEZs out of the big cities and explore the less dense cities," said a commerce department official.
Multi-product SEZ's minimum land requirement has been cut to 500 hectares from 1,000 hectares. Single product SEZ's minimum land requirement has been cut to 50 hectares from 100 hectares. Multi-services SEZs will be treated on a par with single-product SEZs, with the minimum area being slashed to half from 100 hectare. This will allow multi-product SEZ developers with a minimum land requirement of 500 hectare to set up multi-services SEZ on an additional 50 hectare of land.
For SEZs to be set up exclusively for electronics hardware, agro-based food processing, biotechnology, handicrafts, the minimum area required will be 10 hectares.
Agro-based food processing SEZs are being introduced following demands by the agrarian states. SEZs allow duty-free imports or domestic procurement of goods and also provide 100% income tax exemption on export income for SEZ units for the first five years.
India Inc’s Europe investments stood at $56 bn in 2003-12
Mumbai: Indian companies have invested €43 billion ($56 billion) across Europe between 2003-2012, of which €29 billion was mergers & acquisitions of 411 companies.
About €14 billion was invested across 511 projects during the decade, according to a report by the Europe India Chamber of Commerce (EICC), a body that promotes bilateral trade between the European Union and India.
The primary driver behind this investment is the rapid growth of Indian Multinational Corporations (MNC) which is seeking new markets for growth and diversifying risks, access to new technologies, R&D capabilities and leveraging their cash rich positions against low valuations in today’s financial market, it said in the report.
The report – ‘Indian Companies in the European Union: Reigniting Economic Growth’ – also said that Indian companies employ 1.34 lakh professionals in Europe, including 40,000 new jobs created by 511 greenfield investments.
The biggest pan-European employer is the Tata group, which counts about 80,000 employees across its 19 companies in Europe, including the IT giant Tata Consultancy Services.
“Indian Businesses have shown an extremely good track record in turning around troubled companies and that has made their investments even in existing European enterprises as both job protecting and job creating ones,” said Sunil Prasad, Secretary General of the EICC.
A dominant 47 per cent of the Indian greenfield investment and 63 per cent of the employment creation was accrued to the United Kingdom – with which India has strong historic, social and economic ties.
This was followed by Germany, the Netherlands, France, Belgium and Italy – which jointly accounted for 41 per cent of investment and 25 per cent of employment creation.
About €14 billion was invested across 511 projects during the decade, according to a report by the Europe India Chamber of Commerce (EICC), a body that promotes bilateral trade between the European Union and India.
The primary driver behind this investment is the rapid growth of Indian Multinational Corporations (MNC) which is seeking new markets for growth and diversifying risks, access to new technologies, R&D capabilities and leveraging their cash rich positions against low valuations in today’s financial market, it said in the report.
The report – ‘Indian Companies in the European Union: Reigniting Economic Growth’ – also said that Indian companies employ 1.34 lakh professionals in Europe, including 40,000 new jobs created by 511 greenfield investments.
The biggest pan-European employer is the Tata group, which counts about 80,000 employees across its 19 companies in Europe, including the IT giant Tata Consultancy Services.
“Indian Businesses have shown an extremely good track record in turning around troubled companies and that has made their investments even in existing European enterprises as both job protecting and job creating ones,” said Sunil Prasad, Secretary General of the EICC.
A dominant 47 per cent of the Indian greenfield investment and 63 per cent of the employment creation was accrued to the United Kingdom – with which India has strong historic, social and economic ties.
This was followed by Germany, the Netherlands, France, Belgium and Italy – which jointly accounted for 41 per cent of investment and 25 per cent of employment creation.
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