Imagine waking up an hour late every morning and logging in to work in your pyjamas with a steaming mug of coffee. Imagine working without having to leave home. In fact, to avoid the dreaded commute, many employees prefer a 20% lower salary for a job next to home. Justifiably so, since nearly 10 hours of commute a week, equivalent to a full working day, is the norm in metros. Is it possible to harbour this Work from Home dream without harming your career? Here is how to make it work for you.
1) Talk to your boss
Check if your company has an official policy to work from home and the permissions that are required. Next, discuss the option with your manager. Most supervisers are hesitant to approve activities that might impact the output or deadline. Negotiate clear, achievable targets and timelines to address his concerns. If you keep delivering on outcomes from home, his confidence will increase. Make sure you keep him in the loop if you are unavailable for a couple of hours because you have stepped out for a parent teacher meeting at your child's school.
2) Designate work space
Keep aside a work area free of personal stuff. A desk, chair, computer, adequate lighting and clear, uncluttered space build the right environment for you to work efficiently. Organise your immediate visual area so that you are not staring out of an open window or worrying about the mess on the floor. Ideally, work in a room with a closed door so that the home environment does not creep in and diminish your productivity.
3) Hour blocks of time
Establish a clear routine for your work day. Most people find it useful to create 4-hour blocks of time to help achieve targets. It is easy to imagine juggling home tasks or kids while you work. But multitasking works well only with activities that require low mental bandwidth. For high bandwidth tasks like writing a report, multitasking will stall your creative flow and increase the time required to finish work.
4) Cut out interruptions
A benefit of working from home is that you eliminate office interruptions like a gossipy colleague. However, a home can be more distracting. Establish clear boundaries for family, kids, friends and maid in terms of time and space, so that you are not disturbed in the midst of important calls or challenging tasks. To remain focused, switch off Facebook, WhatsApp, cell phone and television. Use the office laptop/software to maximise productivity.
5) Master technology
Invest in adequate infrastructure before you start. Set up a working Wi-Fi Internet connection with a back-up Net dongle, a smart phone with e-mail and communication apps, computer with the required software, even a signal booster for your cell phone if call connectivity is poor at home. Master the use of software, which may include Excel, Word, Skype or proprietary project software from workplace. These investments will reduce your downtime and boost output.
6) Start with a checklist
An office environment provides reminders by way of team members or supervisers pushing on urgent tasks. Without these, it is easy to get waylaid and miss out on primary goals. Spend 15 minutes at the start of each day to make a checklist of tasks, goals and deadlines. As you progress, strike out each task. This will keep you on track and give you morale-boosting feedback on the progress you are making.
7) Put on work clothes
Unfortunately, the pyjama-clad dream does not work efficiently for most people. Wear regular work clothes when you sit down at your work area. When you feel professional, you act professionally. The results show immediately in work as well as in your voice when you speak to your team members. A lot more work gets done during the day with this simple change.
8) Avoid loneliness
Human interaction keeps us sane and contributes to our self-esteem. Long stints of work from home without social interaction is the quickest route to professional and personal deterioration. Put a plan in place to visit office and meet colleagues or clients at least once a week. If this is not possible, have an active social life in non-work hours so that you do not turn into a recluse. On a long-term basis, it can keep you away from positions of responsibility that involve dealing with large teams.
9) Combat guilt
Though work from home is mostly challenging from an efficiency perspective, in some cases it leads to guilt at not fulfilling one's responsibilities. This could push you to overwork. To avoid guilt, create a work schedule and shut down your computer at the end of the day. Take a break like stepping out of the house to mentally switch to home mode. In off hours, deal with office crises as you would on a regular day.
10) Review every month
This is the most important step. Ask yourself if your aim has been achieved. Have you reduced unproductive commute time or were you available for a sick family member? Is it impacting your career negatively like not being considered for promotion? Assess the results regularly and act accordingly.
Success in my Habit
Monday, September 30, 2013
Auditor questions Gujarat NRE coking coal’s ‘ability to survive’
MUMBAI: Gujarat NRE Coke's Australian investment has run into serious trouble with the auditor Grant Thornton refusing to give an opinion on the accounts for the year, citing doubts over company's ability to survive as a 'going concern', and inadequate information about its ability to repay debts.
Gujarat NRE Coking Coal, the Australian subsidiary of Kokata-based Gujarat NRE Coke, is being buffeted by losses and workers' strike over unpaid salary after posting pre-tax loss of A$112 million for FY2013 . The metallurgical coal company is also facing financial problems.
Grant Thronton, in a three-page 'basis for disclaimer of opinion', said that it has been unable to "obtain sufficient appropriate audit evidence to provide a basis for an audit opinion".
Thornton says that it has been unable to form an opinion on the valuation and impairment of assets as the management has not submitted an independent valuation to ascertain the extent of impairment. Though the financial report has been prepared on a 'going concern' basis, it is yet unclear whether the firm can survive as a 'going concern' for 12 months from the date of the audit report, August 2013.
The Australian unit has reported a loss of A$112 million and faces a working capital deficit. It has breached loan covenants, owes money to creditors and has not provided any evidence to indicate that it has the ability to raise money to replace existing debts, the auditor says.
The firm owes about A$27.8 million to its ultimate parent and there are doubts whether that money can be recovered. There are similar issues over contingent liabilities, the audit firm has said. Gujarat NRE Coking Coal has to pay A$487.8 million of debts within the year.
Earlier this month, workers at the company's mines in Illawarra, Australia struck work over unpaid salaries. Arun Jagatramka, chairman of Gujarat NRE Coking Coal, told a local newspaper that the firm is recovering and that a proposed $66 million by Jindal SteelBSE -1.48 % & Power would help restore it to financial health.
Delhi-based Jindal Steel and Power owns 31.5% of the Australian unit and has made an offer to increase its stake to 52%. Gujarat NRE Coke's shares have fallen 35% so far this year. They slipped 1% to end at Rs 12.96 on Friday.
Gujarat NRE CokeBSE -4.86 % has not disclosed the adverse audit report of the Australian subsidiary to its shareholders. Its annual accounts for the year-ended March 13 have been prepared only on the basis of unaudited accounts of the subsidiary, which actually accounts for 63% of assets of the Kolkata-based NRE Coke.
"The observations made by the auditors of the Australian subsidiary could not be incorporated in the consolidated statement of the Indian company since financial statements were as on May 2013, whereas the audited accounts of Australian subsidiary are of August 2013," a company spokesperson told ET.
Auditor questions Gujarat NRE coking coal’s ‘ability to survive’ "However, it was transparently disclosed in the consolidated statement of the Indian company that the management committee's approved statement of the Australian subsidiary has been considered," he added.
Gujarat NRE Coking Coal, the Australian subsidiary of Kokata-based Gujarat NRE Coke, is being buffeted by losses and workers' strike over unpaid salary after posting pre-tax loss of A$112 million for FY2013 . The metallurgical coal company is also facing financial problems.
Grant Thronton, in a three-page 'basis for disclaimer of opinion', said that it has been unable to "obtain sufficient appropriate audit evidence to provide a basis for an audit opinion".
Thornton says that it has been unable to form an opinion on the valuation and impairment of assets as the management has not submitted an independent valuation to ascertain the extent of impairment. Though the financial report has been prepared on a 'going concern' basis, it is yet unclear whether the firm can survive as a 'going concern' for 12 months from the date of the audit report, August 2013.
The Australian unit has reported a loss of A$112 million and faces a working capital deficit. It has breached loan covenants, owes money to creditors and has not provided any evidence to indicate that it has the ability to raise money to replace existing debts, the auditor says.
The firm owes about A$27.8 million to its ultimate parent and there are doubts whether that money can be recovered. There are similar issues over contingent liabilities, the audit firm has said. Gujarat NRE Coking Coal has to pay A$487.8 million of debts within the year.
Earlier this month, workers at the company's mines in Illawarra, Australia struck work over unpaid salaries. Arun Jagatramka, chairman of Gujarat NRE Coking Coal, told a local newspaper that the firm is recovering and that a proposed $66 million by Jindal SteelBSE -1.48 % & Power would help restore it to financial health.
Delhi-based Jindal Steel and Power owns 31.5% of the Australian unit and has made an offer to increase its stake to 52%. Gujarat NRE Coke's shares have fallen 35% so far this year. They slipped 1% to end at Rs 12.96 on Friday.
Gujarat NRE CokeBSE -4.86 % has not disclosed the adverse audit report of the Australian subsidiary to its shareholders. Its annual accounts for the year-ended March 13 have been prepared only on the basis of unaudited accounts of the subsidiary, which actually accounts for 63% of assets of the Kolkata-based NRE Coke.
"The observations made by the auditors of the Australian subsidiary could not be incorporated in the consolidated statement of the Indian company since financial statements were as on May 2013, whereas the audited accounts of Australian subsidiary are of August 2013," a company spokesperson told ET.
Auditor questions Gujarat NRE coking coal’s ‘ability to survive’ "However, it was transparently disclosed in the consolidated statement of the Indian company that the management committee's approved statement of the Australian subsidiary has been considered," he added.
RIL cries it is s being penalised twice over
NEW DELHI: Reliance IndustriesBSE -1.27 % has said it is being punished twice over -- first by levy of a USD 1.78 billion penalty and then by being denied a gas price revision, for a single crime of not producing in line with projections that were not even contractual commitments.
RILBSE -1.27 % and its partner BP plc on September 18 made a detailed presentation to Oil Minister M Veerappa Moily on issues around its main D1&D3 fields in its eastern offshore KG-D6 block where output has fallen to less than a one-fifth to 10 million standard cubic meters per day instead of rising to 80 mmscmd.
Moily's ministry sees production not meeting stated targets are breach of contract and has levied USD 1.786 billion in penalty by way of disallowing cost incurred in past three fiscal. Also, it plans to deny RIL benefit of new price after the current USD 4.2 expires in April next year.
"A double penalty to the contractor: On one hand cost recovery being disallowed on the other market price being denied," RIL said in the presentation.
It said under the Production Sharing Contract (PSC), output figures in a development plan are only estimates and not commitments.
"There is no provision in the PSC that allows Government to penalise the contractor if production shortfall is caused by geological complexities," it said adding the contract allows RIL to recover all its costs.
On move to disallow new USD 8.4 per million British thermal unit price for gas from D1&D3 fields, RIL said, "there appears to be significant contradiction to the government's positions with regards to PSUs who have been granted a nearly 2.5 times price increase despite shortfall in production."
RIL said geological surprise has led to decline in production and subsequent downgrading of reserves.
Stating that it had on numerous occasions requested to appoint an independent international expert to verify its claims, the company said, "Reluctance to appoint a third party exert despite repeated requests and delay in approval of revised field development plan has led to a negative propaganda perpetrated by detractors."
The Directorate General of Hydrocarbons had in July recommended to the Oil Ministry that USD 781 million of the cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic meters per day of gas as against the target of 86.73 mmcmd in 2012-13.
This will be in addition to USD 1.005 billion in cost recovery already disallowed for output falling short of targets during 2010-11 and 2011-12.
Parallely, the Ministry is moving Cabinet to deny RIL a higher price of gas produced from D1&D3 fields till the dispute over the reasons for output not matching targets is resolved.
It wants the current rate of USD 4.2 to continue to apply for gas produced from Dhirubhai-1 (D1) and D3 fields even after expiry of the current term on March 31, 2014.
The government had in late June approved pricing of all domestically produced natural gas at an average of international hub rates and actual cost of LNG into India from next fiscal. The new rate, according to this formula, would be around USD 8.4 per mmBtu.
The new rates were to apply uniformly to gas from RIL fields as well as those of state-owned ONGC. Now, the Ministry wants the old rates to continue for D1&D3 fields but the new price would apply to all other fields in the KG-D6 block including the currently producing MA oil and gas fields.
RILBSE -1.27 % and its partner BP plc on September 18 made a detailed presentation to Oil Minister M Veerappa Moily on issues around its main D1&D3 fields in its eastern offshore KG-D6 block where output has fallen to less than a one-fifth to 10 million standard cubic meters per day instead of rising to 80 mmscmd.
Moily's ministry sees production not meeting stated targets are breach of contract and has levied USD 1.786 billion in penalty by way of disallowing cost incurred in past three fiscal. Also, it plans to deny RIL benefit of new price after the current USD 4.2 expires in April next year.
"A double penalty to the contractor: On one hand cost recovery being disallowed on the other market price being denied," RIL said in the presentation.
It said under the Production Sharing Contract (PSC), output figures in a development plan are only estimates and not commitments.
"There is no provision in the PSC that allows Government to penalise the contractor if production shortfall is caused by geological complexities," it said adding the contract allows RIL to recover all its costs.
On move to disallow new USD 8.4 per million British thermal unit price for gas from D1&D3 fields, RIL said, "there appears to be significant contradiction to the government's positions with regards to PSUs who have been granted a nearly 2.5 times price increase despite shortfall in production."
RIL said geological surprise has led to decline in production and subsequent downgrading of reserves.
Stating that it had on numerous occasions requested to appoint an independent international expert to verify its claims, the company said, "Reluctance to appoint a third party exert despite repeated requests and delay in approval of revised field development plan has led to a negative propaganda perpetrated by detractors."
The Directorate General of Hydrocarbons had in July recommended to the Oil Ministry that USD 781 million of the cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic meters per day of gas as against the target of 86.73 mmcmd in 2012-13.
This will be in addition to USD 1.005 billion in cost recovery already disallowed for output falling short of targets during 2010-11 and 2011-12.
Parallely, the Ministry is moving Cabinet to deny RIL a higher price of gas produced from D1&D3 fields till the dispute over the reasons for output not matching targets is resolved.
It wants the current rate of USD 4.2 to continue to apply for gas produced from Dhirubhai-1 (D1) and D3 fields even after expiry of the current term on March 31, 2014.
The government had in late June approved pricing of all domestically produced natural gas at an average of international hub rates and actual cost of LNG into India from next fiscal. The new rate, according to this formula, would be around USD 8.4 per mmBtu.
The new rates were to apply uniformly to gas from RIL fields as well as those of state-owned ONGC. Now, the Ministry wants the old rates to continue for D1&D3 fields but the new price would apply to all other fields in the KG-D6 block including the currently producing MA oil and gas fields.
Oil India bets big on shale assets, to raise US output
MUMBAI: India's second-largest state-run energy explorer Oil IndiaBSE -2.32 % is now betting big on its prospects in the shale oil and gas arena.
Globally, it is on the cusp of raising shale oil production in its acreage in the US, and it will alsobe appointing a newconsultant to advise on its shale exploration strategy in north-east India.
"Our team just visited the US two weeks ago and came back very impressed with the work there. We plan to increase oil production by 8,000-10 ,000 barrels before the end of this year in that acreage. We have charted out a monthly investment plan for this acreage, the full details I can't share right now," said T Ananth Kumar, CFO, Oil India.
Oil India and the Indian Oil (IOC) jointly bought a 30% stake in Houston-basedC arrizoO il &Gas' shale assets in Colorado for $82.5 million in October 2012. Oil India acquired a 20% stakewhileIOC pickedup 10% in this acreage, making it their maiden investment in the shale arena in the US.
Shale oil and gas production in the US is now booming, propelling it todislodgeRussia for thefirsttime in decades and becoming the world's largest liquid fuel producer, said Paris-based energy watchdog InternationalE nergy Agency lastweek.
This has allowed the US to challenge Opec's hegemony in global energy trade ,said the agency.
"We have recently openedour office and posted some personnel in Colorado, our chairman has also visited the Carrizzo office recently. So, we are very excited about the prospects in this acreage ," said another senior Oil India executive.
As a part of this deal, Oil India and IOCBSE -0.62 % have also gained a 30% participation in Carrizo's existing production of 1,850 barrels of oil equivalent to a day from 24 gross acres. Carrizo holds 61 ,500 gross acres in the Niobrara basin, of which ,theOilI ndia-IOCconsortium have access to 18,450 acres, spread over three counties in Texas.
In India, after Schlumberger's initial findings regarding the presence of shale formations in its blocks in the north east were not encouraging, Oil India is planning to hire another consultant to chart its exploration and production strategy in its acreages in the north east.
"Earlier, because we had not done any shale-specific work in our acreages, our data was not very reflective of the presence of shale formation. So Schlumberger was not able to give us a correct picture. Now we are doing specialised logging and also looking to hire a new consultant specifically to design a comprehensive shale strategy for us," said the executive.
"We are in the market to hire a new consultant who can give us a clear plan to exploit existing shale resources in our acreages across the North East ," added Ananth Kumar. Last week, the government approved the much-awaited shale gas and oil exploration policy.
In the first phase, the policy only permits staterun energy companies like ONGC and Oil India to explore shale resources in acreages that were allotted to them on a nomination basis.
Globally, it is on the cusp of raising shale oil production in its acreage in the US, and it will alsobe appointing a newconsultant to advise on its shale exploration strategy in north-east India.
"Our team just visited the US two weeks ago and came back very impressed with the work there. We plan to increase oil production by 8,000-10 ,000 barrels before the end of this year in that acreage. We have charted out a monthly investment plan for this acreage, the full details I can't share right now," said T Ananth Kumar, CFO, Oil India.
Oil India and the Indian Oil (IOC) jointly bought a 30% stake in Houston-basedC arrizoO il &Gas' shale assets in Colorado for $82.5 million in October 2012. Oil India acquired a 20% stakewhileIOC pickedup 10% in this acreage, making it their maiden investment in the shale arena in the US.
Shale oil and gas production in the US is now booming, propelling it todislodgeRussia for thefirsttime in decades and becoming the world's largest liquid fuel producer, said Paris-based energy watchdog InternationalE nergy Agency lastweek.
This has allowed the US to challenge Opec's hegemony in global energy trade ,said the agency.
"We have recently openedour office and posted some personnel in Colorado, our chairman has also visited the Carrizzo office recently. So, we are very excited about the prospects in this acreage ," said another senior Oil India executive.
As a part of this deal, Oil India and IOCBSE -0.62 % have also gained a 30% participation in Carrizo's existing production of 1,850 barrels of oil equivalent to a day from 24 gross acres. Carrizo holds 61 ,500 gross acres in the Niobrara basin, of which ,theOilI ndia-IOCconsortium have access to 18,450 acres, spread over three counties in Texas.
In India, after Schlumberger's initial findings regarding the presence of shale formations in its blocks in the north east were not encouraging, Oil India is planning to hire another consultant to chart its exploration and production strategy in its acreages in the north east.
"Earlier, because we had not done any shale-specific work in our acreages, our data was not very reflective of the presence of shale formation. So Schlumberger was not able to give us a correct picture. Now we are doing specialised logging and also looking to hire a new consultant specifically to design a comprehensive shale strategy for us," said the executive.
"We are in the market to hire a new consultant who can give us a clear plan to exploit existing shale resources in our acreages across the North East ," added Ananth Kumar. Last week, the government approved the much-awaited shale gas and oil exploration policy.
In the first phase, the policy only permits staterun energy companies like ONGC and Oil India to explore shale resources in acreages that were allotted to them on a nomination basis.
Tamil Nadu Tea Plantation Corporation to increase retail turnover
COIMBATORE: Tamil Nadu Tea Plantation Corporation (Tantea) is aiming to increase its retail turnover to Rs 5 crore in next three years, a top company official said.
Tantea sell 95 per cent of the produce through auction centres of Coimbatore, Coonoor and Kochi and remaining five per cent was utilised for retail sales, company's Managing Director S Balaji told reporters last night here.
Stating that Tantea has made a turnover of Rs 1.5 crore through its retail business, Balaji, here to attend the annual general meeting of Tea Trade Association of Coimbatore, said that with the introduction of 10 different types of tea, like flavoured and Masala tea, it would increase the turn over to Rs 5 crore within five years.
Besides, it has plans to supply dip tea in large number to Railways and wanted to promote tea as health drink, he said.
Similarly, the company, which made an annual turnover of Rs 75 crore last year, was expected to touch Rs 90 crore this year, he said.
Stating that Tantea, with 4,300 hectare of land, would soon undertake modernisation of the eight factories at a cost of Rs four crore, Balaji said this would help it to meet the consumers' choice and market demand.
Tantea sell 95 per cent of the produce through auction centres of Coimbatore, Coonoor and Kochi and remaining five per cent was utilised for retail sales, company's Managing Director S Balaji told reporters last night here.
Stating that Tantea has made a turnover of Rs 1.5 crore through its retail business, Balaji, here to attend the annual general meeting of Tea Trade Association of Coimbatore, said that with the introduction of 10 different types of tea, like flavoured and Masala tea, it would increase the turn over to Rs 5 crore within five years.
Besides, it has plans to supply dip tea in large number to Railways and wanted to promote tea as health drink, he said.
Similarly, the company, which made an annual turnover of Rs 75 crore last year, was expected to touch Rs 90 crore this year, he said.
Stating that Tantea, with 4,300 hectare of land, would soon undertake modernisation of the eight factories at a cost of Rs four crore, Balaji said this would help it to meet the consumers' choice and market demand.
Hero MotoCorp bets on new Splendor to reclaim lost market share
NEW DELHI: Hero MotoCorpBSE -2.28 % is banking on its revamped existing brands to claw back some of its lost market share, and is debuting an all new indigenously developed Splendor as its first indigenous product after parting ways with its erstwhile partner Honda.
While the product was shown to dealer partners at the annual Hero Global Marketing & Sales Conference in Macau last week, the refurbished bike - called Splendor iSmart - is likely to hit the market in the next few months.
Splendor is world's largest-selling bike and has been the mainstay for Hero MotoCorp, contributing more than 35% to its total annual sales of around 6 million units.
ET independently confirmed the development with three separate Hero dealers, who spoke to this correspondent on condition of anonymity. According to a dealer, who was part of the visiting delegation, "Splendor iSmart" has moved away from the regular bike currently available in the market and comes loaded with an all-new meter console, youthful body graphics, front cowl with wind screen, and split grab rails. The product has been added with new overall design, but would carry the same 100cc engine for the time being as Hero develops new set of engines that would meet the next level of stricter emission norms. In addition to the Splendor, Hero also showcased as many of the 14 new offerings across its current range, including upgrades and variants, which will be launched in the market in a phased manner, starting this festive season.
"The new products demonstrate Hero 'Can Do' approach to have independent strength to develop indigenously. The new line showcases progress Hero has made on its current range, and also indicates the company's plans to bring new platforms in 2014," said one of the Hero dealers.
Another dealer who participated in the annual event told ET from Macau, "The company had promised some breakthrough products and the all new Splendor has surprised us with sharp features and some new design cues. While this is still on the current platform, it is clear that Hero is certainly working on a range of products to be developed on new platforms."
Dealer sources said that the new products are expected to help the company tide over the ongoing fierce competition over market share in the lucrative Indian two-wheeler market.
While Hero have an edge with a 53% market share in the domestic motorcycles market, though its overall market share in two-wheelers has come down to 43% in the current fiscal. Rival Honda at the same time has been on a gaining spree and its market share has touched all-time high of 22%, and has left other rivals like Bajaj AutoBSE 0.49 % and TVS Motors much behind in the Indian market.
At the Global Marketing & Sales Conference in Macau, Hero MotoCorp also showcased a refreshed version of its high-end bike Karizma. This is Hero's first commercial production model that has been developed in technical partnership with its US-based partner Erik Buell Racing (EBR). Most of these products are for the domestic market and are likely to hit the market in the October-December quarter as the company looks to cash in on the festive season demand in India.
Hero MD and CEO Pawan Munjal has already told ET earlier that products on the all new platforms, developed in collaboration with its three new technology partners - Erik Buell Racing of the US, Engines Engineering of Italy and AVL of Austria - will be launched in calendar year 2014.
While the product was shown to dealer partners at the annual Hero Global Marketing & Sales Conference in Macau last week, the refurbished bike - called Splendor iSmart - is likely to hit the market in the next few months.
Splendor is world's largest-selling bike and has been the mainstay for Hero MotoCorp, contributing more than 35% to its total annual sales of around 6 million units.
ET independently confirmed the development with three separate Hero dealers, who spoke to this correspondent on condition of anonymity. According to a dealer, who was part of the visiting delegation, "Splendor iSmart" has moved away from the regular bike currently available in the market and comes loaded with an all-new meter console, youthful body graphics, front cowl with wind screen, and split grab rails. The product has been added with new overall design, but would carry the same 100cc engine for the time being as Hero develops new set of engines that would meet the next level of stricter emission norms. In addition to the Splendor, Hero also showcased as many of the 14 new offerings across its current range, including upgrades and variants, which will be launched in the market in a phased manner, starting this festive season.
"The new products demonstrate Hero 'Can Do' approach to have independent strength to develop indigenously. The new line showcases progress Hero has made on its current range, and also indicates the company's plans to bring new platforms in 2014," said one of the Hero dealers.
Another dealer who participated in the annual event told ET from Macau, "The company had promised some breakthrough products and the all new Splendor has surprised us with sharp features and some new design cues. While this is still on the current platform, it is clear that Hero is certainly working on a range of products to be developed on new platforms."
Dealer sources said that the new products are expected to help the company tide over the ongoing fierce competition over market share in the lucrative Indian two-wheeler market.
While Hero have an edge with a 53% market share in the domestic motorcycles market, though its overall market share in two-wheelers has come down to 43% in the current fiscal. Rival Honda at the same time has been on a gaining spree and its market share has touched all-time high of 22%, and has left other rivals like Bajaj AutoBSE 0.49 % and TVS Motors much behind in the Indian market.
At the Global Marketing & Sales Conference in Macau, Hero MotoCorp also showcased a refreshed version of its high-end bike Karizma. This is Hero's first commercial production model that has been developed in technical partnership with its US-based partner Erik Buell Racing (EBR). Most of these products are for the domestic market and are likely to hit the market in the October-December quarter as the company looks to cash in on the festive season demand in India.
Hero MD and CEO Pawan Munjal has already told ET earlier that products on the all new platforms, developed in collaboration with its three new technology partners - Erik Buell Racing of the US, Engines Engineering of Italy and AVL of Austria - will be launched in calendar year 2014.
Toshiba to slash 3,000 overseas TV production jobs
TOKYO, SEPT 30:
Toshiba Corp said today that it would cut by half the number of employees in its television production outside Japan to 3,000 as part of restructuring.
The Company would close two of its three television production facilities overseas by March 2014, it said in a statement.
The facilities are located in China, Poland and Indonesia, but Toshiba spokesman Atsushi Ido declined to say which ones would be closed.
The move would allow Toshiba to boost the outsourced elements of its television production from the current 40 per cent to 70 per cent by the end of the next financial year, which will end in March 2015, the company said.
The Tokyo-based company has been struggling with poor sales of liquid crystal display televisions and sluggish demand for personal computers amid growing popularity of smartphones and tablet computers.
Toshiba Corp said today that it would cut by half the number of employees in its television production outside Japan to 3,000 as part of restructuring.
The Company would close two of its three television production facilities overseas by March 2014, it said in a statement.
The facilities are located in China, Poland and Indonesia, but Toshiba spokesman Atsushi Ido declined to say which ones would be closed.
The move would allow Toshiba to boost the outsourced elements of its television production from the current 40 per cent to 70 per cent by the end of the next financial year, which will end in March 2015, the company said.
The Tokyo-based company has been struggling with poor sales of liquid crystal display televisions and sluggish demand for personal computers amid growing popularity of smartphones and tablet computers.
Cooper shareholders set to approve $2.5 bn Apollo Tyres deal
Cooper Tire and Rubber Co shareholders will likely approve on Monday the U.S. company's $2.5 billion sale to Apollo TyresBSE -0.07 %, in a transaction that is expected to create the world's seventh-largest tyre maker.
A green light from Cooper shareholders will bring Apollo one step closer to completing the takeover, although hurdles still remain due to opposition from workers at Cooper's joint venture in China and U.S. labour issues which could delay the deal.
Shareholders stand to receive $35 per Cooper share, a premium of more than 40 percent to its price before the acquisition announcement.
"Because this is an all cash deal with a substantial premium to the pre-deal price the vast majority of shareholders will support this deal at this price," said Chris DeMuth Jr, portfolio manager at U.S.-based Rangeley Capital.
Still, Cooper shares have lost nearly 12 percent after rising close to the offer price, as roadblocks to the acquisition emerged due to worries over the debt burden of the new owner.
"You're putting pressure on the company by the amount of debt that they want to use to buy this. And so I think the market will always be skittish in the situation," DeMuth said. Rangeley Capital owns less than 5 percent in Cooper, he said.
Workers at Cooper's China joint venture, Cooper Chengshan Tire Co in China's eastern Shandong province, have been striking against the deal for about three months, while its local partner has filed a lawsuit, seeking to dissolve the business arrangement.
Separately, a U.S arbitrator ruled Cooper cannot sell two of its factories in the country until a collective bargaining agreement is reached between Apollo and members of the plants' union.
The two companies have said they hope the deal will get the final all-clear by the end of the year.
Apollo plans to fund the acquisition entirely through debt, most of which will be raised through Cooper, whose market value is currently nearly four times that of the Indian company.
Apollo, whose shares have lost a quarter of their value since the deal was made public, hopes to gain a foothold in the world's two biggest auto markets - China and the United States - by buying Cooper.
If completed, the deal would be the second-largest U.S. acquisition by an Indian company and one of the top 10 outbound takeovers from Asia's third-largest economy, according to Thomson Reuters data.
A shareholder approval of the deal also means Apollo can start drawing down loans, which are already committed by banks, according to a source with direct knowledge of the matter.
Apollo declined comment on Monday, while Cooper did not immediately respond to an email seeking comment outside U.S. business hours.
The banks financing the deal include Standard Chartered and Morgan Stanley.
A green light from Cooper shareholders will bring Apollo one step closer to completing the takeover, although hurdles still remain due to opposition from workers at Cooper's joint venture in China and U.S. labour issues which could delay the deal.
Shareholders stand to receive $35 per Cooper share, a premium of more than 40 percent to its price before the acquisition announcement.
"Because this is an all cash deal with a substantial premium to the pre-deal price the vast majority of shareholders will support this deal at this price," said Chris DeMuth Jr, portfolio manager at U.S.-based Rangeley Capital.
Still, Cooper shares have lost nearly 12 percent after rising close to the offer price, as roadblocks to the acquisition emerged due to worries over the debt burden of the new owner.
"You're putting pressure on the company by the amount of debt that they want to use to buy this. And so I think the market will always be skittish in the situation," DeMuth said. Rangeley Capital owns less than 5 percent in Cooper, he said.
Workers at Cooper's China joint venture, Cooper Chengshan Tire Co in China's eastern Shandong province, have been striking against the deal for about three months, while its local partner has filed a lawsuit, seeking to dissolve the business arrangement.
Separately, a U.S arbitrator ruled Cooper cannot sell two of its factories in the country until a collective bargaining agreement is reached between Apollo and members of the plants' union.
The two companies have said they hope the deal will get the final all-clear by the end of the year.
Apollo plans to fund the acquisition entirely through debt, most of which will be raised through Cooper, whose market value is currently nearly four times that of the Indian company.
Apollo, whose shares have lost a quarter of their value since the deal was made public, hopes to gain a foothold in the world's two biggest auto markets - China and the United States - by buying Cooper.
If completed, the deal would be the second-largest U.S. acquisition by an Indian company and one of the top 10 outbound takeovers from Asia's third-largest economy, according to Thomson Reuters data.
A shareholder approval of the deal also means Apollo can start drawing down loans, which are already committed by banks, according to a source with direct knowledge of the matter.
Apollo declined comment on Monday, while Cooper did not immediately respond to an email seeking comment outside U.S. business hours.
The banks financing the deal include Standard Chartered and Morgan Stanley.
Tatas have been superbly transparent: Tony Fernandes, Air Asia
Air Asia's Tony Fernandes can be a difficult man to pin down for an interview, preferring as he does to operate through Twitter to get his views across - in 140-character bursts of ebullience.
When asked for an interview, he said he'd not given one for "three months" but eventually agreed to answer ET's questions. Owner of Queens Park Rangers football club and former team principal of the Caterham Formula 1 team, Fernandes recently added to his resume by becoming a television anchor, helming the Asian version of The Apprentice.
He spoke to ET over the phone about Air Asia, the Tata-SIA venture and Indian aviation in general. Edited excerpts.
What transpired at the board meeting? Things that you can share?
It was an excellent meeting. We discussed strategy and we are very focused on changing Indian aviation. I am not going to share any plans yet.
With Air Asia India getting its most important approval, and the rest expected to be a formality, how soon do you expect the airline to fly?
There is no schedule. We will finalise the schedule once we believe we can fly. But yes, we are getting closer.
Air Asia's strength as you always mention is scaling up rapidly. Do we expect a ramp up of operations quickly?
We have five countries where we operate. We'll be scaling up quite quickly. There's no two ways about it. We will go for aggressive expansion. If we need to buy more aircraft, we'll buy more aircraft. But we are not going to bare all our secrets through the media.
Indian carriers barring one are bleeding. How confident are you about making profits?
I am very confident that we'll make money in the first year.
The ministry has made moves to ease the minimum 20-aircraft, 5-year period for Indian carriers to fly abroad? Are you ready?
We are not going to be a small airline in India anyway. But I don't think airlines should be restricted by those kind of policies. I imagine we'll have 50 aircraft in three years.
So will you also plan international operations for Air Asia India?
I think Indian airlines are at a disadvantage. Foreign airlines have no restriction on flying abroad. I think Indian jobs are being lost and the Indian economy is at a disadvantage because of the five-year limit. Let's hope there is some change.
But would you plan to go international, if rules allow you?
We'll consider for sure.
What would your fleet size be, as we hear that a significant part of the orders may be routed to India?
It depends. If we get an international flying permit quicker we'll grow our fleet size quicker. It also depends on getting the right airport and a more understanding state government... we'll grow quicker...
So we'll wait and see. I'll wait for the Air Asia India management and board to chalk out the plans rather than saying something myself.
When asked for an interview, he said he'd not given one for "three months" but eventually agreed to answer ET's questions. Owner of Queens Park Rangers football club and former team principal of the Caterham Formula 1 team, Fernandes recently added to his resume by becoming a television anchor, helming the Asian version of The Apprentice.
He spoke to ET over the phone about Air Asia, the Tata-SIA venture and Indian aviation in general. Edited excerpts.
What transpired at the board meeting? Things that you can share?
It was an excellent meeting. We discussed strategy and we are very focused on changing Indian aviation. I am not going to share any plans yet.
With Air Asia India getting its most important approval, and the rest expected to be a formality, how soon do you expect the airline to fly?
There is no schedule. We will finalise the schedule once we believe we can fly. But yes, we are getting closer.
Air Asia's strength as you always mention is scaling up rapidly. Do we expect a ramp up of operations quickly?
We have five countries where we operate. We'll be scaling up quite quickly. There's no two ways about it. We will go for aggressive expansion. If we need to buy more aircraft, we'll buy more aircraft. But we are not going to bare all our secrets through the media.
Indian carriers barring one are bleeding. How confident are you about making profits?
I am very confident that we'll make money in the first year.
The ministry has made moves to ease the minimum 20-aircraft, 5-year period for Indian carriers to fly abroad? Are you ready?
We are not going to be a small airline in India anyway. But I don't think airlines should be restricted by those kind of policies. I imagine we'll have 50 aircraft in three years.
So will you also plan international operations for Air Asia India?
I think Indian airlines are at a disadvantage. Foreign airlines have no restriction on flying abroad. I think Indian jobs are being lost and the Indian economy is at a disadvantage because of the five-year limit. Let's hope there is some change.
But would you plan to go international, if rules allow you?
We'll consider for sure.
What would your fleet size be, as we hear that a significant part of the orders may be routed to India?
It depends. If we get an international flying permit quicker we'll grow our fleet size quicker. It also depends on getting the right airport and a more understanding state government... we'll grow quicker...
So we'll wait and see. I'll wait for the Air Asia India management and board to chalk out the plans rather than saying something myself.
Toshiba to cut 3,000 staff in ailing TV division
TOKYO: Toshiba Corp said on Monday it would cut 50 percent of staff in its loss-making TV unit and cease production at two of its three overseas factories before the end of this fiscal year.
Toshiba said it would increase outsourced production to 70 percent from 40 percent and reduce its global staff in the division by 3,000, with two-thirds of those positions overseas. In July it said it would move 400 staff, included in that figure, to other business units.
The company did not say which two of its three factories in China, Indonesia and Poland it would close.
Toshiba's TV segment has been in the red for the past two years due to weak global sales, partly due to a slowdown in Europe and a fall in domestic demand after a short-lived boost from the switch to digital broadcasting.
In July the company announced plans to cut a combined 10 billion yen ($101 million) in costs in its television and PC businesses this fiscal year, and then double that figure in the following year to cope with weak demand.
The company said it expected the measures to help its TV division to swing into the black in the second half of this fiscal year.
Toshiba said it would increase outsourced production to 70 percent from 40 percent and reduce its global staff in the division by 3,000, with two-thirds of those positions overseas. In July it said it would move 400 staff, included in that figure, to other business units.
The company did not say which two of its three factories in China, Indonesia and Poland it would close.
Toshiba's TV segment has been in the red for the past two years due to weak global sales, partly due to a slowdown in Europe and a fall in domestic demand after a short-lived boost from the switch to digital broadcasting.
In July the company announced plans to cut a combined 10 billion yen ($101 million) in costs in its television and PC businesses this fiscal year, and then double that figure in the following year to cope with weak demand.
The company said it expected the measures to help its TV division to swing into the black in the second half of this fiscal year.
Apple upsets Coca-Cola to be most-valuable brand
Apple is the new most valuable brand in the world, according to a closely followed annual report.
The report, to be released Monday, is from Interbrand, a corporate identity and brand consulting company owned by the Omnicom Group that has been compiling what it calls the Best Global Brands report since 2000. The previous No. 1 brand, Coca-Cola, fell to No. 3.
Not only has Apple replaced Coca-Cola as first among the 100 most valuable brands based on criteria that include financial performance, this is the first time that the soft drink known for slogans like "It's the real thing" has not been No. 1.
Apple's arrival in the top spot was perhaps "a matter of time," Jez Frampton, global chief executive at Interbrand, said in a recent interview. Apple was No. 2 last year, climbing from No. 8 in the 2011 report.
"What is it they say, 'Long live the king'?" Frampton asked. "This year, the king is Apple."
The 2013 report begins: "Every so often, a company changes our lives, not just with its products, but with its ethos. This is why, following Coca-Cola's 13-year run at the top of Best Global Brands, Interbrand has a new No. 1 - Apple."
The report estimates the value of the Apple brand at $98.3 billion, up 28 percent from the 2012 report. The value of the Coca-Cola brand also rose, by 2 percent to $79.2 billion, but that was not sufficient to give Coca-Cola a 14th year as Interbrand's most valuable brand.
Although "Coca-Cola is an efficient, outstanding brand marketer, no doubt about it," Frampton said, Apple and other leading technology brands have become "very much the poster child of the marketing community."
That is underscored by the brand in second place in the new report: Google, which rose from fourth place last year. In fact, of the top 10 Best Global Brands for 2013, five are in technology: Apple; Google; Microsoft, No. 5, unchanged from last year; Samsung, 8, compared with 9 last year; and Intel, 9, compared with 8 last year.
Samsung's ascent followed the company's adoption of a new brand strategy called the Brand Ideal, which includes "a greater focus on social purpose," Sue Shim, executive vice president and chief marketing officer at Samsung, said by email. That reflected research indicating American consumers would switch brands to "one that was associated with improving people's lives," she added.
IBM - No. 4 in 2013, down a notch from 2012 - is ranked as a business services brand. Otherwise, technology would account for six of the top 10.
"Brands like Apple and Google and Samsung are changing our behavior: how we buy, how we communicate with each other, even whether we speak with each other," Frampton said. "They have literally changed the way we live our lives."
Among other transformative technology brands that performed well in the new report was Facebook, which climbed to 52 from 69 last year, its first year on the list.
However, not all technology brands fared well. BlackBerry, which tumbled last year to 93 from 56 in 2011, has disappeared from the list. And Nokia, which dropped to 19 from 14 in 2011, finished this year in 57th place - "the biggest faller" among the 100, Frampton said.
Among nontechnology brands, a notable addition to the list was Chevrolet, at 89, the first General Motors brand to rank among the Best Global Brands.
"It feels good to hit the list for the first time," Alan Batey, global head of Chevrolet at GM, said in a telephone interview. "It's a great first step, but we've got a long way to go. There are a lot of big brands in front of us."
The report, to be released Monday, is from Interbrand, a corporate identity and brand consulting company owned by the Omnicom Group that has been compiling what it calls the Best Global Brands report since 2000. The previous No. 1 brand, Coca-Cola, fell to No. 3.
Not only has Apple replaced Coca-Cola as first among the 100 most valuable brands based on criteria that include financial performance, this is the first time that the soft drink known for slogans like "It's the real thing" has not been No. 1.
Apple's arrival in the top spot was perhaps "a matter of time," Jez Frampton, global chief executive at Interbrand, said in a recent interview. Apple was No. 2 last year, climbing from No. 8 in the 2011 report.
"What is it they say, 'Long live the king'?" Frampton asked. "This year, the king is Apple."
The 2013 report begins: "Every so often, a company changes our lives, not just with its products, but with its ethos. This is why, following Coca-Cola's 13-year run at the top of Best Global Brands, Interbrand has a new No. 1 - Apple."
The report estimates the value of the Apple brand at $98.3 billion, up 28 percent from the 2012 report. The value of the Coca-Cola brand also rose, by 2 percent to $79.2 billion, but that was not sufficient to give Coca-Cola a 14th year as Interbrand's most valuable brand.
Although "Coca-Cola is an efficient, outstanding brand marketer, no doubt about it," Frampton said, Apple and other leading technology brands have become "very much the poster child of the marketing community."
That is underscored by the brand in second place in the new report: Google, which rose from fourth place last year. In fact, of the top 10 Best Global Brands for 2013, five are in technology: Apple; Google; Microsoft, No. 5, unchanged from last year; Samsung, 8, compared with 9 last year; and Intel, 9, compared with 8 last year.
Samsung's ascent followed the company's adoption of a new brand strategy called the Brand Ideal, which includes "a greater focus on social purpose," Sue Shim, executive vice president and chief marketing officer at Samsung, said by email. That reflected research indicating American consumers would switch brands to "one that was associated with improving people's lives," she added.
IBM - No. 4 in 2013, down a notch from 2012 - is ranked as a business services brand. Otherwise, technology would account for six of the top 10.
"Brands like Apple and Google and Samsung are changing our behavior: how we buy, how we communicate with each other, even whether we speak with each other," Frampton said. "They have literally changed the way we live our lives."
Among other transformative technology brands that performed well in the new report was Facebook, which climbed to 52 from 69 last year, its first year on the list.
However, not all technology brands fared well. BlackBerry, which tumbled last year to 93 from 56 in 2011, has disappeared from the list. And Nokia, which dropped to 19 from 14 in 2011, finished this year in 57th place - "the biggest faller" among the 100, Frampton said.
Among nontechnology brands, a notable addition to the list was Chevrolet, at 89, the first General Motors brand to rank among the Best Global Brands.
"It feels good to hit the list for the first time," Alan Batey, global head of Chevrolet at GM, said in a telephone interview. "It's a great first step, but we've got a long way to go. There are a lot of big brands in front of us."
Siemens bags Rs 271-cr RINL order
COIMBATORE, SEPT 30:
A consortium of Siemens AG and Siemens Ltd has bagged a huge order from Rashtriya Ispat Nigam Ltd (RINL) to modernise the Visakhapatnam Steel Plant’s blast furnace No 2.
While Siemens Ltd’s share of the order value would be Rs 271 crore, the press release from Siemens Ltd, which is listed in India, did not mention the share of the German company.
The release said that the modernisation would increase the furnace’s inner volume from 3,200 cubic meters to 3,820 cubic meters and the production would go up from 1.7 million tonnes per annum to 2.5 mtpa.
A consortium of Siemens AG and Siemens Ltd has bagged a huge order from Rashtriya Ispat Nigam Ltd (RINL) to modernise the Visakhapatnam Steel Plant’s blast furnace No 2.
While Siemens Ltd’s share of the order value would be Rs 271 crore, the press release from Siemens Ltd, which is listed in India, did not mention the share of the German company.
The release said that the modernisation would increase the furnace’s inner volume from 3,200 cubic meters to 3,820 cubic meters and the production would go up from 1.7 million tonnes per annum to 2.5 mtpa.
Allcargo ventures into US, buys logistics company for $50 mn
Mumbai: Allcargo Logistics has bought US-based Econocaribe Consolidators for about $50 million ( Rs 312.25 crore), an acquisition that enables the Indian firm to enter the North American market, pushing its share price up as much as 13% on the BSE. The buyout gives Allcargo the much-needed access to the world's largest economy, and many big clients.
Econocaribe Consolidators is one of the largest non-vessel operating common carriers (NVOCC) in US, with 9 offices in the country and 22 receiving terminals in the US and Canada. The deal, Allcargo's seventh acquisition in the last eight years, is expected to immediately add to its earnings.
Econocaribe, the revenue of which grew 15% last year, is a zero-debt company. Operators like Econocaribe don't own vessels but buy space in other logistics companies to ship cargo. They are more resilient to economic slowdowns.
"When we don't have a presence in the US, many customers don't want to work with us. There are many global customers who want one company to serve all their requirements," said Shashi Kiran Shetty, executive chairman of Allcargo.
With this buyout, Allcargo, a part of the Avvashya Group, can now tap the US business of big logistics companies like DHL and UPS, the company said. Allcargo already serves these companies elsewhere in the world. Allcargo expects that with the addition of new clients, volume in and out of the US will grow, aiding overall profitability. The acquisition also gives Allcargo a share of the growing trade within the Americas.
Even though the deal comes at a time of severe economic slowdown in India, Shetty is not too worried as slowdown is a thing of the past for most of the developed economy. "The option for us was to build or buy. Although it is a large amount we are paying, we are comfortable. And we have a platform to operate from day one."
Allcargo's appetite for acquisitions is not over yet. The company, in which private equity firms such as Blackstone, New Vernon and Acacia own about 23 %, is in advanced negotiations to buy a company with presence in Australia and Europe in the next two months. Shetty declined to share more details on the acquisition.
Allcargo is buying Econocaribe through its wholly-owned subsidiary, ECU Line, in Belgium. Almost 70% of the funding for the deal is coming from Belgium banks, while the rest of it is being funded by ECU Line's internal accruals.
Allcargo raised funds from Belgium banks at less than 3% interest.
Allcargo shares closed 11.42% up on Friday. The stock has shed more than 15% of its value in the last six months due to a slump in cargo volumes.
Econocaribe Consolidators is one of the largest non-vessel operating common carriers (NVOCC) in US, with 9 offices in the country and 22 receiving terminals in the US and Canada. The deal, Allcargo's seventh acquisition in the last eight years, is expected to immediately add to its earnings.
Econocaribe, the revenue of which grew 15% last year, is a zero-debt company. Operators like Econocaribe don't own vessels but buy space in other logistics companies to ship cargo. They are more resilient to economic slowdowns.
"When we don't have a presence in the US, many customers don't want to work with us. There are many global customers who want one company to serve all their requirements," said Shashi Kiran Shetty, executive chairman of Allcargo.
With this buyout, Allcargo, a part of the Avvashya Group, can now tap the US business of big logistics companies like DHL and UPS, the company said. Allcargo already serves these companies elsewhere in the world. Allcargo expects that with the addition of new clients, volume in and out of the US will grow, aiding overall profitability. The acquisition also gives Allcargo a share of the growing trade within the Americas.
Even though the deal comes at a time of severe economic slowdown in India, Shetty is not too worried as slowdown is a thing of the past for most of the developed economy. "The option for us was to build or buy. Although it is a large amount we are paying, we are comfortable. And we have a platform to operate from day one."
Allcargo's appetite for acquisitions is not over yet. The company, in which private equity firms such as Blackstone, New Vernon and Acacia own about 23 %, is in advanced negotiations to buy a company with presence in Australia and Europe in the next two months. Shetty declined to share more details on the acquisition.
Allcargo is buying Econocaribe through its wholly-owned subsidiary, ECU Line, in Belgium. Almost 70% of the funding for the deal is coming from Belgium banks, while the rest of it is being funded by ECU Line's internal accruals.
Allcargo raised funds from Belgium banks at less than 3% interest.
Allcargo shares closed 11.42% up on Friday. The stock has shed more than 15% of its value in the last six months due to a slump in cargo volumes.
Gold supply policy for jewellery exporters liberalised
Mumbai: With the relaxation in gold supply norms, jewellery exports from India are set to rebound in the coming months.
On Friday, the Directorate General of Foreign Trade (DGFT) agreed to all the suggestions of the Gems & Jewellery Export Promotion Council (GJEPC) for smooth supply of gold to exporters.
In the April-August 2013 period, gold jewellery exports from India fell 57.12 per cent to Rs 15,609.54 crore from Rs 36,404.17 crore in the corresponding period last year, primarily due to unavailability of gold for exporters. The unavailability had resulted from import restrictions by the government, aimed at containing the country's current account deficit.
Now, jewellery exporters would have easy access to gold, and this would help increase exports. Since the supply restrictions were implemented on July 22, a huge quantity of imported gold has been held at ports. Importers continued to pay demurrages; a number of export orders were cancelled, leading to huge losses for jewellers. This led to losses of at least Rs 25,000 for jewellery exporters for every Rs 1 crore of exports. The loss multiplied for diamond jewellery exporters, owing to higher costs of manufacturing.
"The gold export business will come on track now, with the fresh clarifications issued by DGFT. We will be able to receive gold smoothly, as all hazards have been cleared," said Pankaj Parekh, vice-chairman of GJEPC. A recent Reserve Bank of India (RBI) circular mandates the supply of 20 per cent imported gold to exporters. Jewellery exporters were afraid a higher quantity would be denied to them. And, banks were keen to supply only 20 per cent under the central bank's 20:80 formula. But now, jewellers would be able to secure higher quantities if they needed to, Parekh said.
Another major issue was documentary evidence proving inward remittance of foreign receivables of jewellery exports, showing the use of the first lot of gold procured from banks. This was required to secure a third lot of gold for jewellery exports, irrespective of the quantity. GJEPC argued exporters would have to wait for at least 280 days from the date the first lot was secured; this included 90 days of jewellery making, 180 days of inward remittance and 10 days of procedural delays. This would not only make business unviable; also, exporters would have to opt for new business. Now, DGFT has clarified a proof of exports would suffice and make jewellers eligible for a third lot.
"Another big hurdle was the supply of gold from bonded warehouses. Since the record is maintained both by customs and banks, the onus of the proof of gold supply should not lie on customers. With the undertaking given by customers, banks will now be able to supply gold without seeking clearances from multiple authorities every time," said Vipul Shah, chairman, GJEPC.
Now, the ex-bond bill of entry wouldn't have to be filed every time, as mandated by the Customs earlier; a one time receipt would suffice, said Shah. With these clarifications, both gold and diamond jewellery exports were expected to pick up soon, Parekh said.
On Friday, the Directorate General of Foreign Trade (DGFT) agreed to all the suggestions of the Gems & Jewellery Export Promotion Council (GJEPC) for smooth supply of gold to exporters.
In the April-August 2013 period, gold jewellery exports from India fell 57.12 per cent to Rs 15,609.54 crore from Rs 36,404.17 crore in the corresponding period last year, primarily due to unavailability of gold for exporters. The unavailability had resulted from import restrictions by the government, aimed at containing the country's current account deficit.
Now, jewellery exporters would have easy access to gold, and this would help increase exports. Since the supply restrictions were implemented on July 22, a huge quantity of imported gold has been held at ports. Importers continued to pay demurrages; a number of export orders were cancelled, leading to huge losses for jewellers. This led to losses of at least Rs 25,000 for jewellery exporters for every Rs 1 crore of exports. The loss multiplied for diamond jewellery exporters, owing to higher costs of manufacturing.
"The gold export business will come on track now, with the fresh clarifications issued by DGFT. We will be able to receive gold smoothly, as all hazards have been cleared," said Pankaj Parekh, vice-chairman of GJEPC. A recent Reserve Bank of India (RBI) circular mandates the supply of 20 per cent imported gold to exporters. Jewellery exporters were afraid a higher quantity would be denied to them. And, banks were keen to supply only 20 per cent under the central bank's 20:80 formula. But now, jewellers would be able to secure higher quantities if they needed to, Parekh said.
Another major issue was documentary evidence proving inward remittance of foreign receivables of jewellery exports, showing the use of the first lot of gold procured from banks. This was required to secure a third lot of gold for jewellery exports, irrespective of the quantity. GJEPC argued exporters would have to wait for at least 280 days from the date the first lot was secured; this included 90 days of jewellery making, 180 days of inward remittance and 10 days of procedural delays. This would not only make business unviable; also, exporters would have to opt for new business. Now, DGFT has clarified a proof of exports would suffice and make jewellers eligible for a third lot.
"Another big hurdle was the supply of gold from bonded warehouses. Since the record is maintained both by customs and banks, the onus of the proof of gold supply should not lie on customers. With the undertaking given by customers, banks will now be able to supply gold without seeking clearances from multiple authorities every time," said Vipul Shah, chairman, GJEPC.
Now, the ex-bond bill of entry wouldn't have to be filed every time, as mandated by the Customs earlier; a one time receipt would suffice, said Shah. With these clarifications, both gold and diamond jewellery exports were expected to pick up soon, Parekh said.
Government approves fifteen (15) proposals of foreign direct investment amounting to about Rs 2000.49 crore
New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on August 27, 2013, the Central Government has approved 15 proposals of Foreign Direct Investment (FDI) amounting to Rs. 2000.49 crore approximately.
In addition, two proposals viz., M/s IDFC Trustee Company Ltd., as proposed Trustee for India Infrastructure Fund II, Mumbai and M/s Mylan Inc. USA amounting to Rs.10668.00 crore, have been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 27th August, 2013 :
Following 15 (Fifteen) proposals have been approved :
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. In crore)
1 M/s Grupo Massimo Dutti, S.A. M/s Grupo Massimo Dutti S.A., Spain proposes to form a JV in India to engage in retail trading of Massimo Dutti brand clothing, apparel, footwear, accessories, fragrances and cosmetic products. 2.13
2 M/s Michelin India Tamil Nadu Tyres Pvt. Ltd., Tamil Nadu An LLP with 99% FDI is proposed to be set up in tyre-related R&D and testing by a Swiss Company investing in Michelin tyre companies. 0.049
3 M/s Universal Salvage Limited, England M/s Universal Salvage Ltd., proposes to set up an LLP with 99.999% FDI in its own business domain of provision of auctioneering services of total loss/ used/damaged vehicles. 6.38 ($ 9,99,990)
4 M/s Deep Care Health Pvt. Ltd., Gujarat Fresh issue of 40% equity shares in an existing Pharma Company, M/s Deep Care Health Private Limited to a foreign investor, M/s Rohto Pharmaceutical Company Limited, Japan for product diversification. 15.33
5 M/s Jubilant Pharma Pte Ltd., Singapore M/s Jubilant Pharma Pte Ltd, Singapore has sought approval for setting up a wholly owned subsidiary in India, which will engage in brownfield pharma activities. 1145.10
6 M/s Laurus Labs Pvt. Ltd., Hyderabad M/s Laurus Labs Private Limited, Hyderabad, a foreign owned and controlled Indian company proposes to acquire shares held by two non-resident entities in an existing pharma company, M/s Viziphar Biosciences Private Limited. 0.45
7 M/s Premier Medical Corporation Limited, Mumbai A brownfield Pharma company proposes infusion of further capital from its existing foreign investor. 90.00
8 M/s Advanced Enzyme Technologies Ltd., Mumbai M/s Advanced Enzymes Technologies Limited, an existing Pharma Company, proposes to receive foreign investment pursuant to an IPO and an offer for sale. 200.00
9 M/s Ferring Pharmaceuticals Pvt. Ltd. M/s Ferring BV (Foreign company) proposes to infuse additional capital into M/s Ferring Therapeutics Pvt. Ltd. through its 100 % subsidiary M/s Ferring Pharmaceuticals Pvt. Ltd. 48.90
10 M/s Pama Machine Tools India Pvt. Ltd., New Delhi M/s PAMA Machine Tools India Pvt. Ltd., a heavy engineering sector company, has sought post facto approval for issuance of partly paid up shares to its foreign parent, M/s PAMA Spa, Italy. 0.77
11 M/s Axiom Consulting Pvt. Ltd. Approval has been sought for issue of shares at a pre-agreed priceof an IT company to a director who is a foreign national. 0.19
12 M/s Endeka Ceramics India Pvt. Ltd., Bangalore M/s Endeka Ceramics India Private Limited, Karnataka is a WOS of M/s Endeka Ceramics Holding 1 SLU, Spain. It proposes to issue Compulsory Convertible Preference Shares (CCPS) in lieu of its parent meeting the expenses of its offshore bank guarantees being invoked. Nil
13 M/s Fresenius Kabi India Private Limited M/s Fresenius Kabi India Private Limited, an existing pharma company proposes to issue equity shares to Fresenius Kabi AG, Germany, its parent company. 35.00
14 M/s Symbiotec Pharmalab Limited, Madhya Pradesh An existing pharma sector company proposes to transfer and issue equity shares upto a maximum of 70.86% to a foreign company. 306.19
15 M/s Lotus Surgical Specialities Private Limited, Mumbai M/s Lotus Surgical Specialities Private Limited, an investing company proposed to issue/transfer of shares to M/s Samara Capital Partners Fund II Limited (foreign investor) and make downstream investment in M/s Lotus Surgical Private Limited. 150.00
The following10 (Ten) proposals have been deferred :
Sl. No Name of the applicant Particulars of the proposal
1 M/s XeoInfosoft Pvt. Ltd., Bangalore A software consultancy Company proposes to grant 50% ownership of equity to a Bangladeshi IT professional in order to tap his expertise.
2 M/s Australia Asia Resources LLP, USA M/s Australia Asia Resources LLC, USA proposes to set up an LLP to carry out marketing and technical support services for sale of thermal and metallurgical coals and related commodities.
3 M/s Marketvistas Consumer Insights Pvt. Ltd., (SoniyaMahajani), Mumbai M/s Marketvistas Consumer Insights Private Limited, Mumbai, the Investee company, engaged in market research has sought post-facto approval for issuance of partly paid up shares to M/s Rewhyer Limited, UK.
4 M/s JM Financial Limited, Mumbai M/s JM Financial Limited, an Indian Core Investment company proposes to issue warrants to Mr. Vikram Shankar Pandit, an NRI, on a preferential basis.
5 M/s OriflameIndia Pvt Ltd Post facto approval has been sought by M/s Oriflame India Pvt Ltd for amalgamation with its own group company M/s Silver Oak Laboratories Pvt Ltd, both involved in direct marketing of cosmetics and toiletries.
6 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius The applicant, a NR entity proposes to purchase 50% of the shares in an existing broadcasting company with 100% FDI, from another existing NR investor.
7 M/s HBO India Pvt. Ltd., New Delhi An Indian company, viz., M/s HBO India Pvt. Ltd, New Delhi having foreign investment proposes to engage in the activities of down-linking non-news and current affairs television channels.
8 M/s INX Music Pvt. Ltd., Mumbai M/s INX Music Private Limited, a company which aggregates and distributes music content for TV channels, having 70.85% indirect foreign investment proposes to undertake the additional activity of broadcasting of non-news and current affairs channels.
9 M/s Hindustan Coca-Cola Holdings Pvt. Ltd. The Coca-Cola Holding company in India, which is fully foreign owned, is seeking post-facto approval for FDI inducted in the holding company during 2010-2011.
10 M/s Dhanlaxmi Infrastructure Pvt. Ltd., Gujarat A NR company proposes to transfer its holding in an Indian Infrastructure company to its own group company before the completion of the 3 year lock-in-period.
The following 3 (Three) proposals have been rejected :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Rational Resources Ltd., Malta M/s Rational Resources Ltd., Malta proposes to set up a WoS in India to support adapting and localising land-based, mobile and online poker game.
2 M/s India- Pacific Alliance Pvt. Ltd., Mumbai M/s India- Pacific Alliance Pvt Ltd has sought post facto approval for issuance of shares to Pacific Alliance Capital Group, USA against pre-operative expenses borne by its erstwhile group company, M/s Pacific Alliance International.
3 M/s Financial software and Systems Pvt. Ltd., Chennai M/s Financial Software and Systems Private Limited, an Indian financial software transaction processing solutions company, having 43.56% FDI proposes to engage in the additional activity of setting up, owning and operating White Label ATMs.
The following 3 (Three) proposals have been advised to access automatic route:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs.in crore)
1 M/s Quest Global Defence Engineering Services Pvt. Ltd., Bengaluru M/s Quest Global Defence Engineering Services Pvt Ltd, Bengaluru (Investee Company) proposes to issue 26% equity to M/s Quest Global Services Pte Ltd. (foreign investor) to engage in defence-related IT and ITES engineering services. 0.26
2 M/s Boeing Cyprus Holdings Ltd., Cyprus M/s Boeing Cyprus Holdings Ltd, Cyprus proposes to form a WoS in India, to engage in technical and consultancy services in the defence sector. 2.5
3 M/s Eurocopter India Pvt. Ltd. (FC.II: 86/2012) M/s Eurocopter India Private Limited, a WoS of the French helicopter manufacturer, having obtained FC approval for 100% FDI in helicopter-related IT services, requests for deletion of two of the conditions mentioned in FC approval which were imposed as their clients included defence sector clients. Nil
The following 02 (Two) proposals were withdrawn:
Sl. No. Name of the applicant
1 M/s Aluchem Inc., USA
2 M/s Metalsa India Pvt. Ltd., New Delhi
The following 02 (Two) proposals have been recommended for the consideration of CCEA, as the investment involved in the proposals is above Rs.1200.00 crore:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s IDFC Trustee Company Ltd. As Proposed Trustee for India Infrastructure Fund II, Mumbai An Indian company (M/s IDFC Trustee Company Ltd.) has sought approval to set up an AIF category I and for receiving contributions from international investors. 5500.00
2 M/s Mylan Inc. USA A major US pharma group having Indian subsidiaries proposes to acquire another Indian pharma company engaged in manufacture of generic pharmaceutical products. 5168.00
Decision in the following 1 (One) proposal has been kept in abeyance :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Cardolite Specialty Chemicals India Pvt. Ltd., Chennai Conversion of a wholly foreign owned Indian Company into an LLP to be engaged in making industrial products using cashew nutshell liquid technology, followed by further infusion of capital.
In addition, two proposals viz., M/s IDFC Trustee Company Ltd., as proposed Trustee for India Infrastructure Fund II, Mumbai and M/s Mylan Inc. USA amounting to Rs.10668.00 crore, have been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 27th August, 2013 :
Following 15 (Fifteen) proposals have been approved :
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. In crore)
1 M/s Grupo Massimo Dutti, S.A. M/s Grupo Massimo Dutti S.A., Spain proposes to form a JV in India to engage in retail trading of Massimo Dutti brand clothing, apparel, footwear, accessories, fragrances and cosmetic products. 2.13
2 M/s Michelin India Tamil Nadu Tyres Pvt. Ltd., Tamil Nadu An LLP with 99% FDI is proposed to be set up in tyre-related R&D and testing by a Swiss Company investing in Michelin tyre companies. 0.049
3 M/s Universal Salvage Limited, England M/s Universal Salvage Ltd., proposes to set up an LLP with 99.999% FDI in its own business domain of provision of auctioneering services of total loss/ used/damaged vehicles. 6.38 ($ 9,99,990)
4 M/s Deep Care Health Pvt. Ltd., Gujarat Fresh issue of 40% equity shares in an existing Pharma Company, M/s Deep Care Health Private Limited to a foreign investor, M/s Rohto Pharmaceutical Company Limited, Japan for product diversification. 15.33
5 M/s Jubilant Pharma Pte Ltd., Singapore M/s Jubilant Pharma Pte Ltd, Singapore has sought approval for setting up a wholly owned subsidiary in India, which will engage in brownfield pharma activities. 1145.10
6 M/s Laurus Labs Pvt. Ltd., Hyderabad M/s Laurus Labs Private Limited, Hyderabad, a foreign owned and controlled Indian company proposes to acquire shares held by two non-resident entities in an existing pharma company, M/s Viziphar Biosciences Private Limited. 0.45
7 M/s Premier Medical Corporation Limited, Mumbai A brownfield Pharma company proposes infusion of further capital from its existing foreign investor. 90.00
8 M/s Advanced Enzyme Technologies Ltd., Mumbai M/s Advanced Enzymes Technologies Limited, an existing Pharma Company, proposes to receive foreign investment pursuant to an IPO and an offer for sale. 200.00
9 M/s Ferring Pharmaceuticals Pvt. Ltd. M/s Ferring BV (Foreign company) proposes to infuse additional capital into M/s Ferring Therapeutics Pvt. Ltd. through its 100 % subsidiary M/s Ferring Pharmaceuticals Pvt. Ltd. 48.90
10 M/s Pama Machine Tools India Pvt. Ltd., New Delhi M/s PAMA Machine Tools India Pvt. Ltd., a heavy engineering sector company, has sought post facto approval for issuance of partly paid up shares to its foreign parent, M/s PAMA Spa, Italy. 0.77
11 M/s Axiom Consulting Pvt. Ltd. Approval has been sought for issue of shares at a pre-agreed priceof an IT company to a director who is a foreign national. 0.19
12 M/s Endeka Ceramics India Pvt. Ltd., Bangalore M/s Endeka Ceramics India Private Limited, Karnataka is a WOS of M/s Endeka Ceramics Holding 1 SLU, Spain. It proposes to issue Compulsory Convertible Preference Shares (CCPS) in lieu of its parent meeting the expenses of its offshore bank guarantees being invoked. Nil
13 M/s Fresenius Kabi India Private Limited M/s Fresenius Kabi India Private Limited, an existing pharma company proposes to issue equity shares to Fresenius Kabi AG, Germany, its parent company. 35.00
14 M/s Symbiotec Pharmalab Limited, Madhya Pradesh An existing pharma sector company proposes to transfer and issue equity shares upto a maximum of 70.86% to a foreign company. 306.19
15 M/s Lotus Surgical Specialities Private Limited, Mumbai M/s Lotus Surgical Specialities Private Limited, an investing company proposed to issue/transfer of shares to M/s Samara Capital Partners Fund II Limited (foreign investor) and make downstream investment in M/s Lotus Surgical Private Limited. 150.00
The following10 (Ten) proposals have been deferred :
Sl. No Name of the applicant Particulars of the proposal
1 M/s XeoInfosoft Pvt. Ltd., Bangalore A software consultancy Company proposes to grant 50% ownership of equity to a Bangladeshi IT professional in order to tap his expertise.
2 M/s Australia Asia Resources LLP, USA M/s Australia Asia Resources LLC, USA proposes to set up an LLP to carry out marketing and technical support services for sale of thermal and metallurgical coals and related commodities.
3 M/s Marketvistas Consumer Insights Pvt. Ltd., (SoniyaMahajani), Mumbai M/s Marketvistas Consumer Insights Private Limited, Mumbai, the Investee company, engaged in market research has sought post-facto approval for issuance of partly paid up shares to M/s Rewhyer Limited, UK.
4 M/s JM Financial Limited, Mumbai M/s JM Financial Limited, an Indian Core Investment company proposes to issue warrants to Mr. Vikram Shankar Pandit, an NRI, on a preferential basis.
5 M/s OriflameIndia Pvt Ltd Post facto approval has been sought by M/s Oriflame India Pvt Ltd for amalgamation with its own group company M/s Silver Oak Laboratories Pvt Ltd, both involved in direct marketing of cosmetics and toiletries.
6 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius The applicant, a NR entity proposes to purchase 50% of the shares in an existing broadcasting company with 100% FDI, from another existing NR investor.
7 M/s HBO India Pvt. Ltd., New Delhi An Indian company, viz., M/s HBO India Pvt. Ltd, New Delhi having foreign investment proposes to engage in the activities of down-linking non-news and current affairs television channels.
8 M/s INX Music Pvt. Ltd., Mumbai M/s INX Music Private Limited, a company which aggregates and distributes music content for TV channels, having 70.85% indirect foreign investment proposes to undertake the additional activity of broadcasting of non-news and current affairs channels.
9 M/s Hindustan Coca-Cola Holdings Pvt. Ltd. The Coca-Cola Holding company in India, which is fully foreign owned, is seeking post-facto approval for FDI inducted in the holding company during 2010-2011.
10 M/s Dhanlaxmi Infrastructure Pvt. Ltd., Gujarat A NR company proposes to transfer its holding in an Indian Infrastructure company to its own group company before the completion of the 3 year lock-in-period.
The following 3 (Three) proposals have been rejected :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Rational Resources Ltd., Malta M/s Rational Resources Ltd., Malta proposes to set up a WoS in India to support adapting and localising land-based, mobile and online poker game.
2 M/s India- Pacific Alliance Pvt. Ltd., Mumbai M/s India- Pacific Alliance Pvt Ltd has sought post facto approval for issuance of shares to Pacific Alliance Capital Group, USA against pre-operative expenses borne by its erstwhile group company, M/s Pacific Alliance International.
3 M/s Financial software and Systems Pvt. Ltd., Chennai M/s Financial Software and Systems Private Limited, an Indian financial software transaction processing solutions company, having 43.56% FDI proposes to engage in the additional activity of setting up, owning and operating White Label ATMs.
The following 3 (Three) proposals have been advised to access automatic route:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs.in crore)
1 M/s Quest Global Defence Engineering Services Pvt. Ltd., Bengaluru M/s Quest Global Defence Engineering Services Pvt Ltd, Bengaluru (Investee Company) proposes to issue 26% equity to M/s Quest Global Services Pte Ltd. (foreign investor) to engage in defence-related IT and ITES engineering services. 0.26
2 M/s Boeing Cyprus Holdings Ltd., Cyprus M/s Boeing Cyprus Holdings Ltd, Cyprus proposes to form a WoS in India, to engage in technical and consultancy services in the defence sector. 2.5
3 M/s Eurocopter India Pvt. Ltd. (FC.II: 86/2012) M/s Eurocopter India Private Limited, a WoS of the French helicopter manufacturer, having obtained FC approval for 100% FDI in helicopter-related IT services, requests for deletion of two of the conditions mentioned in FC approval which were imposed as their clients included defence sector clients. Nil
The following 02 (Two) proposals were withdrawn:
Sl. No. Name of the applicant
1 M/s Aluchem Inc., USA
2 M/s Metalsa India Pvt. Ltd., New Delhi
The following 02 (Two) proposals have been recommended for the consideration of CCEA, as the investment involved in the proposals is above Rs.1200.00 crore:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s IDFC Trustee Company Ltd. As Proposed Trustee for India Infrastructure Fund II, Mumbai An Indian company (M/s IDFC Trustee Company Ltd.) has sought approval to set up an AIF category I and for receiving contributions from international investors. 5500.00
2 M/s Mylan Inc. USA A major US pharma group having Indian subsidiaries proposes to acquire another Indian pharma company engaged in manufacture of generic pharmaceutical products. 5168.00
Decision in the following 1 (One) proposal has been kept in abeyance :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Cardolite Specialty Chemicals India Pvt. Ltd., Chennai Conversion of a wholly foreign owned Indian Company into an LLP to be engaged in making industrial products using cashew nutshell liquid technology, followed by further infusion of capital.
Government approves fifteen (15) proposals of foreign direct investment amounting to about Rs 2000.49 crore
New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on August 27, 2013, the Central Government has approved 15 proposals of Foreign Direct Investment (FDI) amounting to Rs. 2000.49 crore approximately.
In addition, two proposals viz., M/s IDFC Trustee Company Ltd., as proposed Trustee for India Infrastructure Fund II, Mumbai and M/s Mylan Inc. USA amounting to Rs.10668.00 crore, have been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 27th August, 2013 :
Following 15 (Fifteen) proposals have been approved :
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. In crore)
1 M/s Grupo Massimo Dutti, S.A. M/s Grupo Massimo Dutti S.A., Spain proposes to form a JV in India to engage in retail trading of Massimo Dutti brand clothing, apparel, footwear, accessories, fragrances and cosmetic products. 2.13
2 M/s Michelin India Tamil Nadu Tyres Pvt. Ltd., Tamil Nadu An LLP with 99% FDI is proposed to be set up in tyre-related R&D and testing by a Swiss Company investing in Michelin tyre companies. 0.049
3 M/s Universal Salvage Limited, England M/s Universal Salvage Ltd., proposes to set up an LLP with 99.999% FDI in its own business domain of provision of auctioneering services of total loss/ used/damaged vehicles. 6.38 ($ 9,99,990)
4 M/s Deep Care Health Pvt. Ltd., Gujarat Fresh issue of 40% equity shares in an existing Pharma Company, M/s Deep Care Health Private Limited to a foreign investor, M/s Rohto Pharmaceutical Company Limited, Japan for product diversification. 15.33
5 M/s Jubilant Pharma Pte Ltd., Singapore M/s Jubilant Pharma Pte Ltd, Singapore has sought approval for setting up a wholly owned subsidiary in India, which will engage in brownfield pharma activities. 1145.10
6 M/s Laurus Labs Pvt. Ltd., Hyderabad M/s Laurus Labs Private Limited, Hyderabad, a foreign owned and controlled Indian company proposes to acquire shares held by two non-resident entities in an existing pharma company, M/s Viziphar Biosciences Private Limited. 0.45
7 M/s Premier Medical Corporation Limited, Mumbai A brownfield Pharma company proposes infusion of further capital from its existing foreign investor. 90.00
8 M/s Advanced Enzyme Technologies Ltd., Mumbai M/s Advanced Enzymes Technologies Limited, an existing Pharma Company, proposes to receive foreign investment pursuant to an IPO and an offer for sale. 200.00
9 M/s Ferring Pharmaceuticals Pvt. Ltd. M/s Ferring BV (Foreign company) proposes to infuse additional capital into M/s Ferring Therapeutics Pvt. Ltd. through its 100 % subsidiary M/s Ferring Pharmaceuticals Pvt. Ltd. 48.90
10 M/s Pama Machine Tools India Pvt. Ltd., New Delhi M/s PAMA Machine Tools India Pvt. Ltd., a heavy engineering sector company, has sought post facto approval for issuance of partly paid up shares to its foreign parent, M/s PAMA Spa, Italy. 0.77
11 M/s Axiom Consulting Pvt. Ltd. Approval has been sought for issue of shares at a pre-agreed priceof an IT company to a director who is a foreign national. 0.19
12 M/s Endeka Ceramics India Pvt. Ltd., Bangalore M/s Endeka Ceramics India Private Limited, Karnataka is a WOS of M/s Endeka Ceramics Holding 1 SLU, Spain. It proposes to issue Compulsory Convertible Preference Shares (CCPS) in lieu of its parent meeting the expenses of its offshore bank guarantees being invoked. Nil
13 M/s Fresenius Kabi India Private Limited M/s Fresenius Kabi India Private Limited, an existing pharma company proposes to issue equity shares to Fresenius Kabi AG, Germany, its parent company. 35.00
14 M/s Symbiotec Pharmalab Limited, Madhya Pradesh An existing pharma sector company proposes to transfer and issue equity shares upto a maximum of 70.86% to a foreign company. 306.19
15 M/s Lotus Surgical Specialities Private Limited, Mumbai M/s Lotus Surgical Specialities Private Limited, an investing company proposed to issue/transfer of shares to M/s Samara Capital Partners Fund II Limited (foreign investor) and make downstream investment in M/s Lotus Surgical Private Limited. 150.00
The following10 (Ten) proposals have been deferred :
Sl. No Name of the applicant Particulars of the proposal
1 M/s XeoInfosoft Pvt. Ltd., Bangalore A software consultancy Company proposes to grant 50% ownership of equity to a Bangladeshi IT professional in order to tap his expertise.
2 M/s Australia Asia Resources LLP, USA M/s Australia Asia Resources LLC, USA proposes to set up an LLP to carry out marketing and technical support services for sale of thermal and metallurgical coals and related commodities.
3 M/s Marketvistas Consumer Insights Pvt. Ltd., (SoniyaMahajani), Mumbai M/s Marketvistas Consumer Insights Private Limited, Mumbai, the Investee company, engaged in market research has sought post-facto approval for issuance of partly paid up shares to M/s Rewhyer Limited, UK.
4 M/s JM Financial Limited, Mumbai M/s JM Financial Limited, an Indian Core Investment company proposes to issue warrants to Mr. Vikram Shankar Pandit, an NRI, on a preferential basis.
5 M/s OriflameIndia Pvt Ltd Post facto approval has been sought by M/s Oriflame India Pvt Ltd for amalgamation with its own group company M/s Silver Oak Laboratories Pvt Ltd, both involved in direct marketing of cosmetics and toiletries.
6 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius The applicant, a NR entity proposes to purchase 50% of the shares in an existing broadcasting company with 100% FDI, from another existing NR investor.
7 M/s HBO India Pvt. Ltd., New Delhi An Indian company, viz., M/s HBO India Pvt. Ltd, New Delhi having foreign investment proposes to engage in the activities of down-linking non-news and current affairs television channels.
8 M/s INX Music Pvt. Ltd., Mumbai M/s INX Music Private Limited, a company which aggregates and distributes music content for TV channels, having 70.85% indirect foreign investment proposes to undertake the additional activity of broadcasting of non-news and current affairs channels.
9 M/s Hindustan Coca-Cola Holdings Pvt. Ltd. The Coca-Cola Holding company in India, which is fully foreign owned, is seeking post-facto approval for FDI inducted in the holding company during 2010-2011.
10 M/s Dhanlaxmi Infrastructure Pvt. Ltd., Gujarat A NR company proposes to transfer its holding in an Indian Infrastructure company to its own group company before the completion of the 3 year lock-in-period.
The following 3 (Three) proposals have been rejected :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Rational Resources Ltd., Malta M/s Rational Resources Ltd., Malta proposes to set up a WoS in India to support adapting and localising land-based, mobile and online poker game.
2 M/s India- Pacific Alliance Pvt. Ltd., Mumbai M/s India- Pacific Alliance Pvt Ltd has sought post facto approval for issuance of shares to Pacific Alliance Capital Group, USA against pre-operative expenses borne by its erstwhile group company, M/s Pacific Alliance International.
3 M/s Financial software and Systems Pvt. Ltd., Chennai M/s Financial Software and Systems Private Limited, an Indian financial software transaction processing solutions company, having 43.56% FDI proposes to engage in the additional activity of setting up, owning and operating White Label ATMs.
The following 3 (Three) proposals have been advised to access automatic route:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs.in crore)
1 M/s Quest Global Defence Engineering Services Pvt. Ltd., Bengaluru M/s Quest Global Defence Engineering Services Pvt Ltd, Bengaluru (Investee Company) proposes to issue 26% equity to M/s Quest Global Services Pte Ltd. (foreign investor) to engage in defence-related IT and ITES engineering services. 0.26
2 M/s Boeing Cyprus Holdings Ltd., Cyprus M/s Boeing Cyprus Holdings Ltd, Cyprus proposes to form a WoS in India, to engage in technical and consultancy services in the defence sector. 2.5
3 M/s Eurocopter India Pvt. Ltd. (FC.II: 86/2012) M/s Eurocopter India Private Limited, a WoS of the French helicopter manufacturer, having obtained FC approval for 100% FDI in helicopter-related IT services, requests for deletion of two of the conditions mentioned in FC approval which were imposed as their clients included defence sector clients. Nil
The following 02 (Two) proposals were withdrawn:
Sl. No. Name of the applicant
1 M/s Aluchem Inc., USA
2 M/s Metalsa India Pvt. Ltd., New Delhi
The following 02 (Two) proposals have been recommended for the consideration of CCEA, as the investment involved in the proposals is above Rs.1200.00 crore:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s IDFC Trustee Company Ltd. As Proposed Trustee for India Infrastructure Fund II, Mumbai An Indian company (M/s IDFC Trustee Company Ltd.) has sought approval to set up an AIF category I and for receiving contributions from international investors. 5500.00
2 M/s Mylan Inc. USA A major US pharma group having Indian subsidiaries proposes to acquire another Indian pharma company engaged in manufacture of generic pharmaceutical products. 5168.00
Decision in the following 1 (One) proposal has been kept in abeyance :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Cardolite Specialty Chemicals India Pvt. Ltd., Chennai Conversion of a wholly foreign owned Indian Company into an LLP to be engaged in making industrial products using cashew nutshell liquid technology, followed by further infusion of capital.
In addition, two proposals viz., M/s IDFC Trustee Company Ltd., as proposed Trustee for India Infrastructure Fund II, Mumbai and M/s Mylan Inc. USA amounting to Rs.10668.00 crore, have been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 27th August, 2013 :
Following 15 (Fifteen) proposals have been approved :
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. In crore)
1 M/s Grupo Massimo Dutti, S.A. M/s Grupo Massimo Dutti S.A., Spain proposes to form a JV in India to engage in retail trading of Massimo Dutti brand clothing, apparel, footwear, accessories, fragrances and cosmetic products. 2.13
2 M/s Michelin India Tamil Nadu Tyres Pvt. Ltd., Tamil Nadu An LLP with 99% FDI is proposed to be set up in tyre-related R&D and testing by a Swiss Company investing in Michelin tyre companies. 0.049
3 M/s Universal Salvage Limited, England M/s Universal Salvage Ltd., proposes to set up an LLP with 99.999% FDI in its own business domain of provision of auctioneering services of total loss/ used/damaged vehicles. 6.38 ($ 9,99,990)
4 M/s Deep Care Health Pvt. Ltd., Gujarat Fresh issue of 40% equity shares in an existing Pharma Company, M/s Deep Care Health Private Limited to a foreign investor, M/s Rohto Pharmaceutical Company Limited, Japan for product diversification. 15.33
5 M/s Jubilant Pharma Pte Ltd., Singapore M/s Jubilant Pharma Pte Ltd, Singapore has sought approval for setting up a wholly owned subsidiary in India, which will engage in brownfield pharma activities. 1145.10
6 M/s Laurus Labs Pvt. Ltd., Hyderabad M/s Laurus Labs Private Limited, Hyderabad, a foreign owned and controlled Indian company proposes to acquire shares held by two non-resident entities in an existing pharma company, M/s Viziphar Biosciences Private Limited. 0.45
7 M/s Premier Medical Corporation Limited, Mumbai A brownfield Pharma company proposes infusion of further capital from its existing foreign investor. 90.00
8 M/s Advanced Enzyme Technologies Ltd., Mumbai M/s Advanced Enzymes Technologies Limited, an existing Pharma Company, proposes to receive foreign investment pursuant to an IPO and an offer for sale. 200.00
9 M/s Ferring Pharmaceuticals Pvt. Ltd. M/s Ferring BV (Foreign company) proposes to infuse additional capital into M/s Ferring Therapeutics Pvt. Ltd. through its 100 % subsidiary M/s Ferring Pharmaceuticals Pvt. Ltd. 48.90
10 M/s Pama Machine Tools India Pvt. Ltd., New Delhi M/s PAMA Machine Tools India Pvt. Ltd., a heavy engineering sector company, has sought post facto approval for issuance of partly paid up shares to its foreign parent, M/s PAMA Spa, Italy. 0.77
11 M/s Axiom Consulting Pvt. Ltd. Approval has been sought for issue of shares at a pre-agreed priceof an IT company to a director who is a foreign national. 0.19
12 M/s Endeka Ceramics India Pvt. Ltd., Bangalore M/s Endeka Ceramics India Private Limited, Karnataka is a WOS of M/s Endeka Ceramics Holding 1 SLU, Spain. It proposes to issue Compulsory Convertible Preference Shares (CCPS) in lieu of its parent meeting the expenses of its offshore bank guarantees being invoked. Nil
13 M/s Fresenius Kabi India Private Limited M/s Fresenius Kabi India Private Limited, an existing pharma company proposes to issue equity shares to Fresenius Kabi AG, Germany, its parent company. 35.00
14 M/s Symbiotec Pharmalab Limited, Madhya Pradesh An existing pharma sector company proposes to transfer and issue equity shares upto a maximum of 70.86% to a foreign company. 306.19
15 M/s Lotus Surgical Specialities Private Limited, Mumbai M/s Lotus Surgical Specialities Private Limited, an investing company proposed to issue/transfer of shares to M/s Samara Capital Partners Fund II Limited (foreign investor) and make downstream investment in M/s Lotus Surgical Private Limited. 150.00
The following10 (Ten) proposals have been deferred :
Sl. No Name of the applicant Particulars of the proposal
1 M/s XeoInfosoft Pvt. Ltd., Bangalore A software consultancy Company proposes to grant 50% ownership of equity to a Bangladeshi IT professional in order to tap his expertise.
2 M/s Australia Asia Resources LLP, USA M/s Australia Asia Resources LLC, USA proposes to set up an LLP to carry out marketing and technical support services for sale of thermal and metallurgical coals and related commodities.
3 M/s Marketvistas Consumer Insights Pvt. Ltd., (SoniyaMahajani), Mumbai M/s Marketvistas Consumer Insights Private Limited, Mumbai, the Investee company, engaged in market research has sought post-facto approval for issuance of partly paid up shares to M/s Rewhyer Limited, UK.
4 M/s JM Financial Limited, Mumbai M/s JM Financial Limited, an Indian Core Investment company proposes to issue warrants to Mr. Vikram Shankar Pandit, an NRI, on a preferential basis.
5 M/s OriflameIndia Pvt Ltd Post facto approval has been sought by M/s Oriflame India Pvt Ltd for amalgamation with its own group company M/s Silver Oak Laboratories Pvt Ltd, both involved in direct marketing of cosmetics and toiletries.
6 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius The applicant, a NR entity proposes to purchase 50% of the shares in an existing broadcasting company with 100% FDI, from another existing NR investor.
7 M/s HBO India Pvt. Ltd., New Delhi An Indian company, viz., M/s HBO India Pvt. Ltd, New Delhi having foreign investment proposes to engage in the activities of down-linking non-news and current affairs television channels.
8 M/s INX Music Pvt. Ltd., Mumbai M/s INX Music Private Limited, a company which aggregates and distributes music content for TV channels, having 70.85% indirect foreign investment proposes to undertake the additional activity of broadcasting of non-news and current affairs channels.
9 M/s Hindustan Coca-Cola Holdings Pvt. Ltd. The Coca-Cola Holding company in India, which is fully foreign owned, is seeking post-facto approval for FDI inducted in the holding company during 2010-2011.
10 M/s Dhanlaxmi Infrastructure Pvt. Ltd., Gujarat A NR company proposes to transfer its holding in an Indian Infrastructure company to its own group company before the completion of the 3 year lock-in-period.
The following 3 (Three) proposals have been rejected :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Rational Resources Ltd., Malta M/s Rational Resources Ltd., Malta proposes to set up a WoS in India to support adapting and localising land-based, mobile and online poker game.
2 M/s India- Pacific Alliance Pvt. Ltd., Mumbai M/s India- Pacific Alliance Pvt Ltd has sought post facto approval for issuance of shares to Pacific Alliance Capital Group, USA against pre-operative expenses borne by its erstwhile group company, M/s Pacific Alliance International.
3 M/s Financial software and Systems Pvt. Ltd., Chennai M/s Financial Software and Systems Private Limited, an Indian financial software transaction processing solutions company, having 43.56% FDI proposes to engage in the additional activity of setting up, owning and operating White Label ATMs.
The following 3 (Three) proposals have been advised to access automatic route:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs.in crore)
1 M/s Quest Global Defence Engineering Services Pvt. Ltd., Bengaluru M/s Quest Global Defence Engineering Services Pvt Ltd, Bengaluru (Investee Company) proposes to issue 26% equity to M/s Quest Global Services Pte Ltd. (foreign investor) to engage in defence-related IT and ITES engineering services. 0.26
2 M/s Boeing Cyprus Holdings Ltd., Cyprus M/s Boeing Cyprus Holdings Ltd, Cyprus proposes to form a WoS in India, to engage in technical and consultancy services in the defence sector. 2.5
3 M/s Eurocopter India Pvt. Ltd. (FC.II: 86/2012) M/s Eurocopter India Private Limited, a WoS of the French helicopter manufacturer, having obtained FC approval for 100% FDI in helicopter-related IT services, requests for deletion of two of the conditions mentioned in FC approval which were imposed as their clients included defence sector clients. Nil
The following 02 (Two) proposals were withdrawn:
Sl. No. Name of the applicant
1 M/s Aluchem Inc., USA
2 M/s Metalsa India Pvt. Ltd., New Delhi
The following 02 (Two) proposals have been recommended for the consideration of CCEA, as the investment involved in the proposals is above Rs.1200.00 crore:
Sl. No Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s IDFC Trustee Company Ltd. As Proposed Trustee for India Infrastructure Fund II, Mumbai An Indian company (M/s IDFC Trustee Company Ltd.) has sought approval to set up an AIF category I and for receiving contributions from international investors. 5500.00
2 M/s Mylan Inc. USA A major US pharma group having Indian subsidiaries proposes to acquire another Indian pharma company engaged in manufacture of generic pharmaceutical products. 5168.00
Decision in the following 1 (One) proposal has been kept in abeyance :
Sl. No Name of the applicant Particulars of the proposal
1 M/s Cardolite Specialty Chemicals India Pvt. Ltd., Chennai Conversion of a wholly foreign owned Indian Company into an LLP to be engaged in making industrial products using cashew nutshell liquid technology, followed by further infusion of capital.
FIIs infused Rs 13,000 crore in the Indian stock market during September 2013
New Delhi: Foreign institutional investors (FIIs) have invested Rs 13,000 crore in the Indian stock market during September 2013, after the announcement of new measures to boost the economic growth by Mr Raghuram Rajan, Governor, Reserve Bank of India (RBI). Moreover, the US Federal Reserve’s decision to leave its stimulus programme unchanged also encouraged foreign investors to park funds in the Indian equities.
Inflows in equities were about Rs 13,228 crore during September 2-27, 2013. There is just one trading session left for this month.
Renewed buying by FIIs was witnessed after Mr Rajan took over as the RBI chief and announced a slew of measures to attract dollar inflows, including enhanced limits for exporters to re-book the cancelled forward exchange contracts and a window for banks to swap the foreign currency deposits.
Besides, Federal Reserve’s decision to continue with its monthly US$ 85 billion bond-buying programme and wait for more signs of growth recovery have encouraged FIIs to invest in the Indian equity market.
Since the beginning of 2013, FIIs have infused Rs 73,398 crore in equities.
Inflows in equities were about Rs 13,228 crore during September 2-27, 2013. There is just one trading session left for this month.
Renewed buying by FIIs was witnessed after Mr Rajan took over as the RBI chief and announced a slew of measures to attract dollar inflows, including enhanced limits for exporters to re-book the cancelled forward exchange contracts and a window for banks to swap the foreign currency deposits.
Besides, Federal Reserve’s decision to continue with its monthly US$ 85 billion bond-buying programme and wait for more signs of growth recovery have encouraged FIIs to invest in the Indian equity market.
Since the beginning of 2013, FIIs have infused Rs 73,398 crore in equities.
Asean and India to explore areas of cooperation in agriculture
Agriculture Minister to Participate in Asean-India Meet in Agriculture, in Kuala Lumpur
Minister for Agriculture and Food Processing Industries, Shri Sharad Pawar, has left for Kuala Lumpur to participate in the third ASEAN-India Ministerial Meeting on Agriculture. He will address the meet tomorrow.
The 2nd Ministerial Meeting was held in New Delhi in October 2012. After that, a number of exchanges between researchers and policy makers have taken place. A group of farmers also recently visited Malaysia under the cooperation.
The meeting is expected to strengthen cooperation between the ASEAN nations and India. The ASEAN and India have, in the recent years, worked on many areas of cooperation, especially in research and education. These include:
Fellowships for higher education in the field of agriculture and allied sciences
Exchange of scientists between agricultural education, research and extension institutions of ASEAN member states and India
Information Technology Applications for Agricultural Extension (e-Extension)
Organic certification for fruit and vegetables
Organizing and implementing an effective National Seed Quality Control System, and
Spatial and temporal dynamics of avian influenza viruses in wild and aquatic migratory birds of India.
Minister for Agriculture and Food Processing Industries, Shri Sharad Pawar, has left for Kuala Lumpur to participate in the third ASEAN-India Ministerial Meeting on Agriculture. He will address the meet tomorrow.
The 2nd Ministerial Meeting was held in New Delhi in October 2012. After that, a number of exchanges between researchers and policy makers have taken place. A group of farmers also recently visited Malaysia under the cooperation.
The meeting is expected to strengthen cooperation between the ASEAN nations and India. The ASEAN and India have, in the recent years, worked on many areas of cooperation, especially in research and education. These include:
Fellowships for higher education in the field of agriculture and allied sciences
Exchange of scientists between agricultural education, research and extension institutions of ASEAN member states and India
Information Technology Applications for Agricultural Extension (e-Extension)
Organic certification for fruit and vegetables
Organizing and implementing an effective National Seed Quality Control System, and
Spatial and temporal dynamics of avian influenza viruses in wild and aquatic migratory birds of India.
Sunday, September 29, 2013
Mitsubishi Electric plans Rs 300 cr investments
Mumbai: Japanese electronics and electrical equipments manufacturer, Mitsubishi Electric is planning to invest about Rs 300 crore by 2016. The investment would be mainly for equity infusion and capital expenditure, a company senior official told Business Line.
The official said that out of the total investment about Rs 80 crore would be invested in Chennai for manufacturing elevators and another Rs 100 crore for making air-conditioning equipment. The site for the air-conditioning unit has not been decided but it would be in North India.
The official said that out of the total investment about Rs 80 crore would be invested in Chennai for manufacturing elevators and another Rs 100 crore for making air-conditioning equipment. The site for the air-conditioning unit has not been decided but it would be in North India.
Luxury retail space in India to rise to 1.44% by 2015: Cushman & Wakefield
Mumbai: Global real estate consultants, Cushman & Wakefield has estimated that the share of luxury retail space in India will be a modest 1.44% by 2015 as against the current 1% even as total retail malls stock is set to increase by 27% by 2015.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
Luxury retail space in India to rise to 1.44% by 2015: Cushman & Wakefield
Mumbai: Global real estate consultants, Cushman & Wakefield has estimated that the share of luxury retail space in India will be a modest 1.44% by 2015 as against the current 1% even as total retail malls stock is set to increase by 27% by 2015.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
The report released on Thursday highlights the changing luxury retail scenario in India. It said that of the total current operational mall space in the organized retail sector across the top seven cities of India is estimated at 66 million sq. ft. of which luxury retail space is only 770,000 sq. ft.
The relative reach of luxury brands present in the malls of top seven cities in India is the highest in NCR at 38%, followed by 21% in Mumbai and 17% in Bengaluru.
"NCR and Mumbai have been favoured destinations for luxury retailers as they have marked the evolution of mall culture in the country. However, lately luxury retailers have started focusing on Bengaluru as the next upcoming destination with its development as an IT Hub and higher disposable income," it said.
Meanwhile, cities like Pune, Chennai and Hyderabad are yet to gain traction from luxury retailers in malls as they have relatively low luxury brand reach and are yet to catch up with the mall culture to the extent witnessed in NCR, Mumbai and Bengaluru. A similar trend was observed while analyzing penetration of luxury retailers in each of these cities.
On the other hand, the reach of luxury brands in the prominent main streets of the top seven cities in the country was led by Mumbai and NCR each having 30% reach, followed by Hyderabad with 16% reach. Hyderabad emerged as an exception in wake of low vacancy and limited mall supply in the city, thus resulting in increased presence of luxury retailers on its main street.
Six airports to get Rs 4k-cr private investment
new Delhi: Airports at Chennai, Lucknow, Kolkata, Ahmedabad, Guwahati and Jaipur, identified for privatisation in the current financial year, are likely to see fresh investments of Rs 4,250 crore from selected private concessionaires.
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage.
The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively. The investments at Chennai include resources required for constructing a new domestic terminal, a parallel taxi track, re-carpeting the main runway, modification of old international terminal building, connectivity of metro rail, construction of common user cargo terminal and multi-level car park. The investment will have to be made in three-four years.
The concessionaire would have to re-carpet the runway, expand the terminal building, relocate the car park, construct cargo terminal, three additional hangars, boundary wall, perimeter road, new fire station, CISF barracks and administrative block at Lucknow. The bidders shortlisted for the privatisation of the Lucknow airport will be announced on
October 28. As many as 11 companies, including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports last week. At Kolkata airport, the private concessionaire would have to make investments of Rs 700 crore among others for extension of air-side corridor to cater to additional aerobridges and modification of old domestic terminal building, strengthening the main runway, metro connectivity, including covered link till the terminal buildings, construction of domestic cargo terminal. The private parties would have to invest Rs 700 crore at Ahmedabad, Rs 550 crore at Jaipur and Rs 600 crore at Guwahati for development and upgrade works, including expansion, upgrade or construction of new passenger terminals.
The government is working with a tight schedule awarding these projects before the end of the current financial year, based on a deadline set by the Prime Minister's Office. To address concerns that privatisation of the six old airports might result in higher charges for passengers, the tariff to be levied after privatisation would be determined before awarding the projects. A price increase would be linked to the wholesale price index to ensure certainty regarding charges even after the private concessionaire takes over operations.
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage.
The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively. The investments at Chennai include resources required for constructing a new domestic terminal, a parallel taxi track, re-carpeting the main runway, modification of old international terminal building, connectivity of metro rail, construction of common user cargo terminal and multi-level car park. The investment will have to be made in three-four years.
The concessionaire would have to re-carpet the runway, expand the terminal building, relocate the car park, construct cargo terminal, three additional hangars, boundary wall, perimeter road, new fire station, CISF barracks and administrative block at Lucknow. The bidders shortlisted for the privatisation of the Lucknow airport will be announced on
October 28. As many as 11 companies, including Infrastructure Leasing and Finance Services, Essar Infrastructure, Tata Projects, Tata Realty and Infrastructure, GMR Group and Anil Ambani’s Reliance Group evinced interest in bidding for the privatisation programme of the Chennai and Lucknow airports last week. At Kolkata airport, the private concessionaire would have to make investments of Rs 700 crore among others for extension of air-side corridor to cater to additional aerobridges and modification of old domestic terminal building, strengthening the main runway, metro connectivity, including covered link till the terminal buildings, construction of domestic cargo terminal. The private parties would have to invest Rs 700 crore at Ahmedabad, Rs 550 crore at Jaipur and Rs 600 crore at Guwahati for development and upgrade works, including expansion, upgrade or construction of new passenger terminals.
The government is working with a tight schedule awarding these projects before the end of the current financial year, based on a deadline set by the Prime Minister's Office. To address concerns that privatisation of the six old airports might result in higher charges for passengers, the tariff to be levied after privatisation would be determined before awarding the projects. A price increase would be linked to the wholesale price index to ensure certainty regarding charges even after the private concessionaire takes over operations.
Indian Railways’ DLW produces world’s first ever 5500 HP locomotive as a pilot project
Year 2014 - A Glory of ‘Golden Jubilee’ Year for Diesel Locomotives Works
New Delhi: In continuing with its technological upgradation programme, Indian Railways has produced the prototype 5500 HP diesel locomotives (WDG5) which are already running as a pilot project in North Central Railway. This Loco is developed by Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways. This is so because no locomotive manufacturer in the entire world has attempted more than 4000 HP on 22 tonne axle load and also because of the smaller moving dimension of locomotive as compared to USA and Canada. The 5500 HP WDG5 is primarily aimed at improving the throughput with higher balancing speeds. The locomotive will be able to achieve 100 Kmph speed on level track with higher axle load. WDG5 brings to Indian Railways advanced technologies such as Electronic Fuel Injection (for higher fuel efficiency and emission control). DLW’s locomotive designs implement collision protection, provision for heating, ventilation and air conditioning, task lighting, improved visibility, ergonomic seating and a soothing and aesthetic visual TFT based display (similar to that used in aircrafts), thereby setting up new standards for crew comport and safety. Today DLW is able to manufacture locomotives with a wide horsepower range, from 1400 HP to 5500 HP for multiple track gauges. Thus, besides meeting the needs of non-railway customers in India, DLW is exporting locomotives to Bangladesh, Sri Lanka, Vietnam, Malaysia, Tanzania, Sudan, Senegal, Mozambique and Myanmar in addition to DLW has also diversifies into manufacture of Diesel Generator (DG) sets and is the proud supplier of the extremely critical back up DG sets to Nuclear Power Corporation India Limited’s nuclear power plants at Kota, Narora, Kaiga and Kalpakkam. DLW’s which is the only manufacture of mainline diesel electric locomotives not only in India but in the whole South and Southeast Asia has grown and transformed over the years to meet the nation’s changing transportation needs. Having manufactured over 6700 locomotives till date, DLW is now one of the biggest locomotive manufacturers in the world. In the year 2012-13, DLW manufactured an unprecedented 294 locomotives, thereby increasing its production nearly three times from 112 locomotives manufactured in the year 2002-03. Diesel Locomotive Works (DLW), Varanasi will be shining in the glory of ‘Golden Jubilee’ year when it will be completing 50 years of its production service next year i.e 2014 since its inception in 1964.
New Delhi: In continuing with its technological upgradation programme, Indian Railways has produced the prototype 5500 HP diesel locomotives (WDG5) which are already running as a pilot project in North Central Railway. This Loco is developed by Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways. This is so because no locomotive manufacturer in the entire world has attempted more than 4000 HP on 22 tonne axle load and also because of the smaller moving dimension of locomotive as compared to USA and Canada. The 5500 HP WDG5 is primarily aimed at improving the throughput with higher balancing speeds. The locomotive will be able to achieve 100 Kmph speed on level track with higher axle load. WDG5 brings to Indian Railways advanced technologies such as Electronic Fuel Injection (for higher fuel efficiency and emission control). DLW’s locomotive designs implement collision protection, provision for heating, ventilation and air conditioning, task lighting, improved visibility, ergonomic seating and a soothing and aesthetic visual TFT based display (similar to that used in aircrafts), thereby setting up new standards for crew comport and safety. Today DLW is able to manufacture locomotives with a wide horsepower range, from 1400 HP to 5500 HP for multiple track gauges. Thus, besides meeting the needs of non-railway customers in India, DLW is exporting locomotives to Bangladesh, Sri Lanka, Vietnam, Malaysia, Tanzania, Sudan, Senegal, Mozambique and Myanmar in addition to DLW has also diversifies into manufacture of Diesel Generator (DG) sets and is the proud supplier of the extremely critical back up DG sets to Nuclear Power Corporation India Limited’s nuclear power plants at Kota, Narora, Kaiga and Kalpakkam. DLW’s which is the only manufacture of mainline diesel electric locomotives not only in India but in the whole South and Southeast Asia has grown and transformed over the years to meet the nation’s changing transportation needs. Having manufactured over 6700 locomotives till date, DLW is now one of the biggest locomotive manufacturers in the world. In the year 2012-13, DLW manufactured an unprecedented 294 locomotives, thereby increasing its production nearly three times from 112 locomotives manufactured in the year 2002-03. Diesel Locomotive Works (DLW), Varanasi will be shining in the glory of ‘Golden Jubilee’ year when it will be completing 50 years of its production service next year i.e 2014 since its inception in 1964.
India and US to chart out future cooperation
New Delhi: In order to chart a course for future cooperation in areas including civil nuclear technology, trade, investment and defence, Dr Manmohan Singh, Prime Minister of India and Mr Barack Obama, President of United States of America (USA) will meet on September 27, 2013, at the Oval Office in the White House.
It is also expected that some agreements including in the field of defence will be signed after the summit meeting between the two leaders.
Dr Singh is expected to raise India’s concerns over the proposed changes in US visa norms which would affect the highly-skilled IT professionals from India.
“Over the past decade, our relationship with the US, which is one of our most important relationships, has transformed into a global strategic partnership” highlighted Dr Singh before the meeting. He further added, “The intensive, high—level bilateral visits over the last few months reflect the strong momentum of bilateral engagement. We have also registered impressive progress in our cooperation across the full spectrum of the relationship. My visit is an opportunity to review our joint efforts and chart a course for our future cooperation. ”India sees the US as a long term partner in the country’s development efforts, and in fostering a global environment that is conducive to its growth. The US remains a key source of technology, investment, innovation, resources and one of the most important destinations for our goods and services, said Dr Singh.
President Obama is also looking forward to his meeting with Dr Singh, said Mr Jay Carney, Press Secretary, White House.
It is also expected that some agreements including in the field of defence will be signed after the summit meeting between the two leaders.
Dr Singh is expected to raise India’s concerns over the proposed changes in US visa norms which would affect the highly-skilled IT professionals from India.
“Over the past decade, our relationship with the US, which is one of our most important relationships, has transformed into a global strategic partnership” highlighted Dr Singh before the meeting. He further added, “The intensive, high—level bilateral visits over the last few months reflect the strong momentum of bilateral engagement. We have also registered impressive progress in our cooperation across the full spectrum of the relationship. My visit is an opportunity to review our joint efforts and chart a course for our future cooperation. ”India sees the US as a long term partner in the country’s development efforts, and in fostering a global environment that is conducive to its growth. The US remains a key source of technology, investment, innovation, resources and one of the most important destinations for our goods and services, said Dr Singh.
President Obama is also looking forward to his meeting with Dr Singh, said Mr Jay Carney, Press Secretary, White House.
Schneider Electric starts support facility for data centres
Hyderabad: Schneider Electric has commissioned a services bureau in Bangalore as a nerve centre and a support facility for data centres in India and the Asia-Pacific region.
The French major, which provides energy management solutions, describes the new services bureau as a Centre of Excellence. This centre integrates information management systems, monitoring solutions, data science, technical and operational expertise.
This bureau will address the requirement of its data centre services clients in verticals such as telecom, retail banking, healthcare, manufacturing. It has been set up to help customers optimise their infrastructure, senior company officials told Business Line.
Philippe Arsonneau, Senior Vice-President APJ Schneider Electric, IT Business Unit said: “Data centres are becoming increasingly complex to manage and operate, as the business risks associated with failure of such critical infrastructure equipment is too significant to disregard. Schneider Electric through this bureau will help customers optimise their investments without any problems.”
Nikhil Pathak, Vice-President, Schneider Electric IT Business, India & SAARC said: “Over the last two years, our India team has built the expertise and experience in offering complete services for all critical environments. Energy management is a major driver for addressing efficiency as a whole.”
The corporation seeks to build on its close relationship with customers and help them by offering services both on site and through such centres.
For the company, its large installed base provides an opportunity to offer services, spanning energy, IT infrastructure and data centre management. Technical experts, business analysts will facilitate better management of critical data of companies.
The French major, which provides energy management solutions, describes the new services bureau as a Centre of Excellence. This centre integrates information management systems, monitoring solutions, data science, technical and operational expertise.
This bureau will address the requirement of its data centre services clients in verticals such as telecom, retail banking, healthcare, manufacturing. It has been set up to help customers optimise their infrastructure, senior company officials told Business Line.
Philippe Arsonneau, Senior Vice-President APJ Schneider Electric, IT Business Unit said: “Data centres are becoming increasingly complex to manage and operate, as the business risks associated with failure of such critical infrastructure equipment is too significant to disregard. Schneider Electric through this bureau will help customers optimise their investments without any problems.”
Nikhil Pathak, Vice-President, Schneider Electric IT Business, India & SAARC said: “Over the last two years, our India team has built the expertise and experience in offering complete services for all critical environments. Energy management is a major driver for addressing efficiency as a whole.”
The corporation seeks to build on its close relationship with customers and help them by offering services both on site and through such centres.
For the company, its large installed base provides an opportunity to offer services, spanning energy, IT infrastructure and data centre management. Technical experts, business analysts will facilitate better management of critical data of companies.
Swedish hygiene products company SCA to set up Rs 145-crore manufacturing facility in India
Chennai: Global hygiene and forest products company SCA will set up a manufacturing facility for hygiene products with an investment of about Rs 145 crore in India. The facility is expected to commence production in 2015, a statement from the company said.
The brands that SCA intends to launch in India over the coming months are TENA - for incontinence care, Libero baby care, Tempo - for hand and face hygiene and Tork, a range of away-from-home tissues.
"SCA aims to grow organically and has extensive experience in the hygiene business, which should help to provide better hygiene for the Indian consumer. The large population and the low penetration of hygiene products provide the potential for SCA's future growth," adds Cecilia Edebo - Vice President Consumer Goods SCA India, said in a statement.
"In order to achieve this goal we have done thorough research of the Indian market and developed a solid plan that takes into account regional specifics as well as preferences of our target audiences," Milind Pingle - managing director of SCA said.
The Swedish company will now compete with Procter & Gamble's Pampers, Kimberly Clarke's Huggies and Unicharm's Mamy Poko Pants in the Rs 4,000-crore baby diaper market in India.
"The investment is in line with our strategy of strengthening SCA's presence in emerging markets", Jan Johansson, president and CEO of SCA said.
The brands that SCA intends to launch in India over the coming months are TENA - for incontinence care, Libero baby care, Tempo - for hand and face hygiene and Tork, a range of away-from-home tissues.
"SCA aims to grow organically and has extensive experience in the hygiene business, which should help to provide better hygiene for the Indian consumer. The large population and the low penetration of hygiene products provide the potential for SCA's future growth," adds Cecilia Edebo - Vice President Consumer Goods SCA India, said in a statement.
"In order to achieve this goal we have done thorough research of the Indian market and developed a solid plan that takes into account regional specifics as well as preferences of our target audiences," Milind Pingle - managing director of SCA said.
The Swedish company will now compete with Procter & Gamble's Pampers, Kimberly Clarke's Huggies and Unicharm's Mamy Poko Pants in the Rs 4,000-crore baby diaper market in India.
"The investment is in line with our strategy of strengthening SCA's presence in emerging markets", Jan Johansson, president and CEO of SCA said.
CARE Ratings to enter Europe via Singapore consortium
New Delhi: Credit rating agency Credit Analysis & Research Ltd (CARE) is entering the European market through a Singapore-based international arm.
It has joined hands with credit rating agencies in four other countries — Brazil, Malaysia, South Africa and Portugal — to set up a Singapore-based entity called ARC Rating Holding.
CARE will hold 20 per cent stake in this Singapore entity, which will hold 100 per cent in ARC Rating Europe, D. R. Dogra, Managing Director and CEO, CARE Ratings, told Business Line. “We can’t go international on our own and that is why the joint venture route. But we see lot of growth opportunities for us in Europe. ARC Rating Europe will have an office in London,” Dogra said.
ARC Rating Europe will cater only to large companies and not offer rating services for small businesses.
CARE, which had launched an initial public offering in December 2012, is the country’s second largest credit rating agency by revenue.
A presence in London will help it serve Indian corporate clients, which have spread their wings in Europe, better.
Indian companies need not only look to entrenched foreign credit rating players in those markets for their needs, it was pointed out. Dogra also said that CARE will set up an entity in Mauritius this fiscal, in which it would have a controlling interest of 51 per cent.
The remaining stake may be picked up by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
CARE would look to enter Africa through the Mauritius entity.
In Africa, plans are afoot to offer rating services for large companies as well as small and medium businesses, he said.
It has joined hands with credit rating agencies in four other countries — Brazil, Malaysia, South Africa and Portugal — to set up a Singapore-based entity called ARC Rating Holding.
CARE will hold 20 per cent stake in this Singapore entity, which will hold 100 per cent in ARC Rating Europe, D. R. Dogra, Managing Director and CEO, CARE Ratings, told Business Line. “We can’t go international on our own and that is why the joint venture route. But we see lot of growth opportunities for us in Europe. ARC Rating Europe will have an office in London,” Dogra said.
ARC Rating Europe will cater only to large companies and not offer rating services for small businesses.
CARE, which had launched an initial public offering in December 2012, is the country’s second largest credit rating agency by revenue.
A presence in London will help it serve Indian corporate clients, which have spread their wings in Europe, better.
Indian companies need not only look to entrenched foreign credit rating players in those markets for their needs, it was pointed out. Dogra also said that CARE will set up an entity in Mauritius this fiscal, in which it would have a controlling interest of 51 per cent.
The remaining stake may be picked up by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
CARE would look to enter Africa through the Mauritius entity.
In Africa, plans are afoot to offer rating services for large companies as well as small and medium businesses, he said.
Foreign currency bank borrowings norms eased
Mumbai: The Reserve Bank of India (RBI) on Wednesday eased the norms for banks borrowing through foreign currency. For bank borrowings exceeding half the unimpaired tier-I capital made on or before November 30 for availing of RBI’s swap facility, the central bank lowered the maturity requirement from three years to a year.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
Target to develop 10,000 MW power through solar energy by 2017
New Delhi: Ministry of New and Renewable Energy has set a target of generation of 10,000 Megawatt of power through solar energy by the year 2017. Addressing the Solar Power Developers Meet in the Capital today, the Minister for New and Renewable Energy Dr. Farooq Abdullah said that the Phase I of the Jawaharlal Nehru National Solar Mission has been very successful wherein 1685 MW of solar power was generated as against the target of 1100 MW.
The Minister informed that large tracks of land have been identified in Rajasthan, Kargil and Ladakh which have immense potential of generation of solar power. Dr. Abdullah said that the main challenge was starting a transmission line in the areas of Kargil and Ladakh so that power could be evacuated to the other parts of the country. He also focused on the need for breakthrough in new research to ensure storage of solar energy for greater time period. The Minister highlighted the new initiatives for ensuring greater use of solar power in the Government buildings and also said that the Ministry planned to use mobile towers in a way that they could generate power through solar and wind energy.
On this occasion, the Minister gave awards to 13 organisations/ companies for having done commendable work in the first phase of the Jawaharlal Nehru National Solar Mission. He expressed the hope that the corporate sector will continue to contribute in a major way to the efforts of the Government in making India one of the leading producers of solar energy.
Mr. Ratan P.Watal, Secretary, MNRE, highlighted importance of development of solar power for meeting the solar requirements of around 40% of the population which lacked access to energy resources. Even providing one unit of power to such houses throughout the year would in itself need a generation of 15,000 MW of solar power. The Jawaharlal Nehru National Solar Mission was launched on 11th January, 2010 by the Prime Minister. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. The Mission has targeted a capacity of grid connected solar power generation of 1000 MW within three years of its launch and to reach installed power capacity of 10,000 MW by the year 2017. The target of 20,000 MW for 2022, which if successful, could lead to conditions of grid-competitive solar power.
The Minister informed that large tracks of land have been identified in Rajasthan, Kargil and Ladakh which have immense potential of generation of solar power. Dr. Abdullah said that the main challenge was starting a transmission line in the areas of Kargil and Ladakh so that power could be evacuated to the other parts of the country. He also focused on the need for breakthrough in new research to ensure storage of solar energy for greater time period. The Minister highlighted the new initiatives for ensuring greater use of solar power in the Government buildings and also said that the Ministry planned to use mobile towers in a way that they could generate power through solar and wind energy.
On this occasion, the Minister gave awards to 13 organisations/ companies for having done commendable work in the first phase of the Jawaharlal Nehru National Solar Mission. He expressed the hope that the corporate sector will continue to contribute in a major way to the efforts of the Government in making India one of the leading producers of solar energy.
Mr. Ratan P.Watal, Secretary, MNRE, highlighted importance of development of solar power for meeting the solar requirements of around 40% of the population which lacked access to energy resources. Even providing one unit of power to such houses throughout the year would in itself need a generation of 15,000 MW of solar power. The Jawaharlal Nehru National Solar Mission was launched on 11th January, 2010 by the Prime Minister. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. The Mission has targeted a capacity of grid connected solar power generation of 1000 MW within three years of its launch and to reach installed power capacity of 10,000 MW by the year 2017. The target of 20,000 MW for 2022, which if successful, could lead to conditions of grid-competitive solar power.
Parle Agro launches India’s first coffee carbonated drink
New Delhi: Two decades after Parle sold marquee soft drinks brands such as Thums Up, Limca and Gold Spot to Coca-Cola, one of the Parle brothers, Prakash Chauhan, is returning to the carbonated soft drinks segment. Chauhan's Parle Agro on Tuesday launched Cafe Cuba, the country's first coffee-flavoured carbonated beverage.
The product, available in 250 ml cans priced Rs 20, was recently test-marketed in big cities and is now being taken to smaller towns and rural markets. The maker of juices and fruit drinks such as Frooti, Appy and Hippo expects the new coffee drink to record Rs 1,000-crore sales in the first 12-18 months of its launch.
In an exclusive interaction with ET, Prakash Chauhan said his firm is initially targeting 5% share of the Rs 15,000-crore carbonated soft drinks (CSD) market with Cafe Cuba. Edited excerpts:
Was the decision to re-enter CSD emotional?
It was more business than emotional. Emotions will come in after the product is put in the market. The product is more a strategic one, which we feel has a greater chance of success in a big category.
Cola segment is big in soft drinks, while tea is the preferred choice in the hot beverages space in India. Both your beverage and its name are completely different...
When we were thinking about what could be a possible product, there were many options, including tea and coffee. We decided on coffee and started working with flavour houses to blend the product, which came out good. If we had created another cola, then we would have spent lots of money to compete with rivals. But we created coffee and are not competing with any other products in the market. We are targeting a 5% market share initially.
Will you replicate similar strategy you had for Thums Up and other popular brands?
We will bring a strong character and an identifiable taste, which is not common. Even today, Thums Up has its identity and taste. We don't want a wishywashy personality of the product and have to be focused on what this product is without wavering from it. We will follow everything same as earlier because we should never deviate from a success story.
Won't you feel bad when the new product competes with brands you created years ago?
Not at all. Within our company, if this brand competes with Appy Fizz, it's not a problem. Our focus is on creating strong character and personality and identifiable taste.
The product, available in 250 ml cans priced Rs 20, was recently test-marketed in big cities and is now being taken to smaller towns and rural markets. The maker of juices and fruit drinks such as Frooti, Appy and Hippo expects the new coffee drink to record Rs 1,000-crore sales in the first 12-18 months of its launch.
In an exclusive interaction with ET, Prakash Chauhan said his firm is initially targeting 5% share of the Rs 15,000-crore carbonated soft drinks (CSD) market with Cafe Cuba. Edited excerpts:
Was the decision to re-enter CSD emotional?
It was more business than emotional. Emotions will come in after the product is put in the market. The product is more a strategic one, which we feel has a greater chance of success in a big category.
Cola segment is big in soft drinks, while tea is the preferred choice in the hot beverages space in India. Both your beverage and its name are completely different...
When we were thinking about what could be a possible product, there were many options, including tea and coffee. We decided on coffee and started working with flavour houses to blend the product, which came out good. If we had created another cola, then we would have spent lots of money to compete with rivals. But we created coffee and are not competing with any other products in the market. We are targeting a 5% market share initially.
Will you replicate similar strategy you had for Thums Up and other popular brands?
We will bring a strong character and an identifiable taste, which is not common. Even today, Thums Up has its identity and taste. We don't want a wishywashy personality of the product and have to be focused on what this product is without wavering from it. We will follow everything same as earlier because we should never deviate from a success story.
Won't you feel bad when the new product competes with brands you created years ago?
Not at all. Within our company, if this brand competes with Appy Fizz, it's not a problem. Our focus is on creating strong character and personality and identifiable taste.
TCS, GE join hands to create first all-women BPO in Saudi
Pune: India’s largest information technology services provider, Tata Consultancy Services (TCS), and GE have entered into a joint venture to set up the first all-women business process services centre in Riyadh, Saudi Arabia.
TCS and GE will have 76 per cent and 24 per cent equity, respectively. The first anchor customers would be Saudi Aramco, the kingdom’s national oil company, and GE. The new centre is to serve as a building block to localise a business process outsourcing (BPO) industry in Saudi Arabia. The three partners (Saudi Aramco being the third) are to scale up the new venture, to create up to 3,000 jobs for Saudi female professionals. GE will create up to 1,000 employment opportunities for this initiative.
Cyrus Mistry, chairman of Tata Group, present at the inaugural event, said: “The Tata Group has a long history of encouraging women to achieve their potential and contribute to the community...Saudi Arabia is a focus market for the Tata Group, where we have built strong partnerships, and this ambitious initiative is an example of our commitment to this market.” The Saudi Arabian government is trying to diversify its economy away from a dependence on petroleum, encouraging localisation and growth of a viable employment sector.
“In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide-ranging employment...In recent decades, the world, including Saudi Arabian enterprises, has been outsourcing these functions offshore. It’s time to bring those jobs home,” said Khalid A Al Falih, president and chief executive of Saudi Aramco. GE chairman Jeffrey Immelt said: “We are proud to be supporting female employment opportunities in the kingdom.”
Initially providing services to the anchor clients, the centre is to eventually expand the customer base. In due course, GE and TCS will work with leading Saudi educational institutions for specialised training.
N Chandrasekaran, CEO and MD, Tata Consultancy Services said: “This unique initiative will leverage a new talent pool in the Kingdom to meet the business needs of corporations in the region. It is an example of our long-term commitment to this market. By drawing on our proven global expertise in business process services, our ability to partner with corporations as well as develop talented professionals, we will help achieve the goals of this pioneering venture.”
TCS and GE will have 76 per cent and 24 per cent equity, respectively. The first anchor customers would be Saudi Aramco, the kingdom’s national oil company, and GE. The new centre is to serve as a building block to localise a business process outsourcing (BPO) industry in Saudi Arabia. The three partners (Saudi Aramco being the third) are to scale up the new venture, to create up to 3,000 jobs for Saudi female professionals. GE will create up to 1,000 employment opportunities for this initiative.
Cyrus Mistry, chairman of Tata Group, present at the inaugural event, said: “The Tata Group has a long history of encouraging women to achieve their potential and contribute to the community...Saudi Arabia is a focus market for the Tata Group, where we have built strong partnerships, and this ambitious initiative is an example of our commitment to this market.” The Saudi Arabian government is trying to diversify its economy away from a dependence on petroleum, encouraging localisation and growth of a viable employment sector.
“In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide-ranging employment...In recent decades, the world, including Saudi Arabian enterprises, has been outsourcing these functions offshore. It’s time to bring those jobs home,” said Khalid A Al Falih, president and chief executive of Saudi Aramco. GE chairman Jeffrey Immelt said: “We are proud to be supporting female employment opportunities in the kingdom.”
Initially providing services to the anchor clients, the centre is to eventually expand the customer base. In due course, GE and TCS will work with leading Saudi educational institutions for specialised training.
N Chandrasekaran, CEO and MD, Tata Consultancy Services said: “This unique initiative will leverage a new talent pool in the Kingdom to meet the business needs of corporations in the region. It is an example of our long-term commitment to this market. By drawing on our proven global expertise in business process services, our ability to partner with corporations as well as develop talented professionals, we will help achieve the goals of this pioneering venture.”
Kerala plans to be destination for skills training
Thiruvananthapuram: Kerala is proposing a grand plan to not only skill its young people but also provide related know-how to other parts of the country.
This is being taken up as part of the Prime Minister’s initiative for imparting skills to 50 crore young people by 2022, State Labour Minister Shibu Baby John said.
SKILLING TARGET
A concept note prepared by the State labour department projects that, on a proportionate basis, Kerala will need to skill 1.35 crore youngsters by 2022.
This means that over the next nine-year period, the State would need to target on an average 15 lakh young people for skilling every year.
This represents an eight-fold increase in the numbers that the State is averaging concurrently, the note said.
This is being taken up as part of the Prime Minister’s initiative for imparting skills to 50 crore young people by 2022, State Labour Minister Shibu Baby John said.
SKILLING TARGET
A concept note prepared by the State labour department projects that, on a proportionate basis, Kerala will need to skill 1.35 crore youngsters by 2022.
This means that over the next nine-year period, the State would need to target on an average 15 lakh young people for skilling every year.
This represents an eight-fold increase in the numbers that the State is averaging concurrently, the note said.
IT sector revenue to cross $225 b by 2020
Chennai: Newer technologies such as social media, analytics and cloud computing (SMAC) will help India’s IT-BPO industry cross $225-billion-mark in revenues by 2020, according to a CII report.
These technologies have opened new avenues for the Indian IT-BPO vendors. Since globally companies are adopting SMAC technologies for operational efficiency, Indian IT-BPO vendors can develop their SMAC strategies, according to CII Report – ‘The SMAC Code – Embracing New Technologies for Future Business’ released at at CII Connect 2013.
SMAC enables companies leverage the cloud for storing huge volumes of multi-structured customer data, generated over mobile devices and social media and analyse these data sets for business advantage.
Industry estimates suggest that the global ICT spending will reach the $5-trillion mark by 2020 driven by the combination of social media, mobility, analytics and cloud. In 2012, SMAC approximately contributed about 20 per cent of the total ICT spending and they are collectively, growing at about 18 per cent year-on-year. At this rate, it is expected that these technologies will become 80 per cent of the total spending by 2020, the report said.
The Indian IT industry expanded from an $8 billion in 2000 to an estimated $ 108 billion in 2013. The industry took advantage of the vast pool of highly skilled resources available at low cost, and rode on the wave of application development and BPM services to spread its wings.
However, going forward, the vendors should seek to work closely with their customers to stay abreast of the latest technological developments, and come up with solutions that can take advantage of SMAC, the report said.
These technologies have opened new avenues for the Indian IT-BPO vendors. Since globally companies are adopting SMAC technologies for operational efficiency, Indian IT-BPO vendors can develop their SMAC strategies, according to CII Report – ‘The SMAC Code – Embracing New Technologies for Future Business’ released at at CII Connect 2013.
SMAC enables companies leverage the cloud for storing huge volumes of multi-structured customer data, generated over mobile devices and social media and analyse these data sets for business advantage.
Industry estimates suggest that the global ICT spending will reach the $5-trillion mark by 2020 driven by the combination of social media, mobility, analytics and cloud. In 2012, SMAC approximately contributed about 20 per cent of the total ICT spending and they are collectively, growing at about 18 per cent year-on-year. At this rate, it is expected that these technologies will become 80 per cent of the total spending by 2020, the report said.
The Indian IT industry expanded from an $8 billion in 2000 to an estimated $ 108 billion in 2013. The industry took advantage of the vast pool of highly skilled resources available at low cost, and rode on the wave of application development and BPM services to spread its wings.
However, going forward, the vendors should seek to work closely with their customers to stay abreast of the latest technological developments, and come up with solutions that can take advantage of SMAC, the report said.
RBI relaxes norms to raise funds from abroad
New Delhi: The Reserve Bank of India (RBI) has relaxed norms to raise funds from abroad. All types of companies are now allowed to avail trade credit facility from overseas for import of capital goods.
“On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding US$ 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT),” according to RBI.
The amended policy has come into force with immediate effect.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
The ab initio contract period of 15 months for all trade credits has also been relaxed to 6 months by the RBI.
All other aspects of trade credit policy will remain unchanged and should be complied with, as per RBI.
“On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding US$ 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT),” according to RBI.
The amended policy has come into force with immediate effect.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
The ab initio contract period of 15 months for all trade credits has also been relaxed to 6 months by the RBI.
All other aspects of trade credit policy will remain unchanged and should be complied with, as per RBI.
Monday, September 23, 2013
BHEL secure orders worth over Rs 31,650 crore during FY 2012-13
New Delhi: Bharat Heavy Electricals Ltd secured orders worth over Rs 31,650 crore during financial year 2012-13, an increase of 43 per cent over 2011-12.
The orders were received from sectors like captive power, rail transportation, power transmission, oil and gas, renewable energies and other industrial segments, BHEL chairman and managing director B P Rao said on Friday.
"Despite subdued business conditions in the power and infrastructure sectors coupled with intense competition in domestic and overseas markets, BHEL was able to secure orders worth Rs 31,650 crore, an increase of 43 per cent over 2011-12," he said in his speech to shareholders.
The company had an order book of over Rs 22,096 crore in the 2011-12. The total orders in hand for execution are at about Rs 1,15,100 crore, he said. Rao said that the company clocked a turnover of Rs 50,156 crore and a net profit of Rs 6,615 crore in 2012-13.
BHEL commissioned 10,340 mw power plant equipment during 2012-13. and received export orders of Rs 2,004 crore from 20 countries in 2012-13.
BHEL's June quarter update:-
>Orders received during: Rs 1469 crore
>Power sector: Rs 818 crore
>Industry sector: Rs 648 crore
>Orders bagged for supply of boiler package for 4 units of 120-mw from Jindal Power Ltd for thermal projects in Africa.
>Order book as on June 30, 2013: Rs 1,08,600 crore
>82 per cent by power sector
>10 per cent by industry sector
>8 per cent by international operations.
The orders were received from sectors like captive power, rail transportation, power transmission, oil and gas, renewable energies and other industrial segments, BHEL chairman and managing director B P Rao said on Friday.
"Despite subdued business conditions in the power and infrastructure sectors coupled with intense competition in domestic and overseas markets, BHEL was able to secure orders worth Rs 31,650 crore, an increase of 43 per cent over 2011-12," he said in his speech to shareholders.
The company had an order book of over Rs 22,096 crore in the 2011-12. The total orders in hand for execution are at about Rs 1,15,100 crore, he said. Rao said that the company clocked a turnover of Rs 50,156 crore and a net profit of Rs 6,615 crore in 2012-13.
BHEL commissioned 10,340 mw power plant equipment during 2012-13. and received export orders of Rs 2,004 crore from 20 countries in 2012-13.
BHEL's June quarter update:-
>Orders received during: Rs 1469 crore
>Power sector: Rs 818 crore
>Industry sector: Rs 648 crore
>Orders bagged for supply of boiler package for 4 units of 120-mw from Jindal Power Ltd for thermal projects in Africa.
>Order book as on June 30, 2013: Rs 1,08,600 crore
>82 per cent by power sector
>10 per cent by industry sector
>8 per cent by international operations.
Tech Mahindra sets up engineering college with French university tie-up
Hyderabad: The Mahindras have diversified into the higher education. Its group company, Tech Mahindra, has established an engineering college in association with the 200-year-old French university, Ecole Centrale and Jawaharlal Nehru Technological University.
The institute, which has come up at Tech Mahindra’s Bahadurpally property here, will offer a dual degree. Students will get a B.Tech. degree from JNTU and after completing the fifth year, they would get M.Tech from the French university.
Vineet Nayyar, Executive Vice-Chairman of Tech Mahindra, said though the country had scores of engineering colleges, there is vacuum when it comes to quality. Though the country has some good colleges, they have failed to meet global benchmarks.
After consolidating the activities of college, Tech Mahindra would set up satellite centres in cities such as Jaipur, Pune, Chennai and Goa.
Mahindra Ecole Centrale, which will begin courses from the next summer, will take students based on their performance in the common IIT entrance examination, C. P. Gurnani, Chief Executive officer and Managing Director of Tech Mahindra, said.
The fee structure for the courses, however, has not been decided yet. The curriculum would conform to the norms the AICTE (All-India Council for Technical Education).
The college, however, is not to be restricted to technological studies only. There would be several other streams such as energy, infrastructure and humanities. “The college will have a modern and international academic programme that blends basic scientific and technical education with contemporary industry practices,” Nayyar said.
“Our integrated curriculum will develop students with the unique ability to adapt to global engineering challenges and new technologies that will shape our future and also to master the complexity of multinational organisations,” he said.
The institute, which has come up at Tech Mahindra’s Bahadurpally property here, will offer a dual degree. Students will get a B.Tech. degree from JNTU and after completing the fifth year, they would get M.Tech from the French university.
Vineet Nayyar, Executive Vice-Chairman of Tech Mahindra, said though the country had scores of engineering colleges, there is vacuum when it comes to quality. Though the country has some good colleges, they have failed to meet global benchmarks.
After consolidating the activities of college, Tech Mahindra would set up satellite centres in cities such as Jaipur, Pune, Chennai and Goa.
Mahindra Ecole Centrale, which will begin courses from the next summer, will take students based on their performance in the common IIT entrance examination, C. P. Gurnani, Chief Executive officer and Managing Director of Tech Mahindra, said.
The fee structure for the courses, however, has not been decided yet. The curriculum would conform to the norms the AICTE (All-India Council for Technical Education).
The college, however, is not to be restricted to technological studies only. There would be several other streams such as energy, infrastructure and humanities. “The college will have a modern and international academic programme that blends basic scientific and technical education with contemporary industry practices,” Nayyar said.
“Our integrated curriculum will develop students with the unique ability to adapt to global engineering challenges and new technologies that will shape our future and also to master the complexity of multinational organisations,” he said.
IT firms to add 1.5 lakh jobs this fiscal
Chennai: The infotech industry will recruit nearly 1.5 lakh people in the current fiscal. The industry is likely to grow at 12-14 per cent as against 10.5 per cent last year, according to R. Chandrasekaran, Group Chief Executive of Technology and Operations at Cognizant Technology Solutions.
Based on the June quarter results, the industry is on track to achieve the projected growth, he said. “We are quite optimistic,” said Chandrasekaran, who is also the chairman for Connect 2013, an ICT (information, communication technology) event to be held on September 23 and 24 in Chennai.
Healthy growth
Each IT job will generate four or five ancillary jobs. “Collectively, we are talking about creating one million jobs. Tell me, which industry is creating so many jobs?” he asked. “Given the current economic situation, which industry is growing at 12-14 per cent? Only the IT industry is showing such a healthy growth. Every other industry is talking about negative growth,” he told Business Line.
Every IT major has started on a healthy note this financial year, he said.
From a demand perspective too, the economy in the US, which is the biggest market for the industry, is stable. There is increased interest in Europe as companies there are looking at improving efficiencies using IT, he pointed out. Asked about the correlation between growth and adding people, Chandrasekaran said every company is focussed on improving efficiency and profit. Companies are looking at increasing employee utilisation or just-in-time hiring, he said. There are lots of operational parameters companies are looking at, he said.
Campus hiring
When asked if poor hiring in colleges reflects the slowdown in the industry, Chanadrasekaran said: “You should not go by what is happening at the campus level.”
He added that every company is hiring but maybe in a staggered way at multiple sources. According to him the IT industry is also moving to a non-linear revenue model. For example, companies are developing platforms and signing clients for an output-based services model andthis de-links headcount from revenue.
“The share of non-linear revenue is gradually increasing, though it is small now,” he said. Headcount addition is one of the indicators of growth. “The correlation between headcount and revenue will go over a period of time,” he said.
Based on the June quarter results, the industry is on track to achieve the projected growth, he said. “We are quite optimistic,” said Chandrasekaran, who is also the chairman for Connect 2013, an ICT (information, communication technology) event to be held on September 23 and 24 in Chennai.
Healthy growth
Each IT job will generate four or five ancillary jobs. “Collectively, we are talking about creating one million jobs. Tell me, which industry is creating so many jobs?” he asked. “Given the current economic situation, which industry is growing at 12-14 per cent? Only the IT industry is showing such a healthy growth. Every other industry is talking about negative growth,” he told Business Line.
Every IT major has started on a healthy note this financial year, he said.
From a demand perspective too, the economy in the US, which is the biggest market for the industry, is stable. There is increased interest in Europe as companies there are looking at improving efficiencies using IT, he pointed out. Asked about the correlation between growth and adding people, Chandrasekaran said every company is focussed on improving efficiency and profit. Companies are looking at increasing employee utilisation or just-in-time hiring, he said. There are lots of operational parameters companies are looking at, he said.
Campus hiring
When asked if poor hiring in colleges reflects the slowdown in the industry, Chanadrasekaran said: “You should not go by what is happening at the campus level.”
He added that every company is hiring but maybe in a staggered way at multiple sources. According to him the IT industry is also moving to a non-linear revenue model. For example, companies are developing platforms and signing clients for an output-based services model andthis de-links headcount from revenue.
“The share of non-linear revenue is gradually increasing, though it is small now,” he said. Headcount addition is one of the indicators of growth. “The correlation between headcount and revenue will go over a period of time,” he said.
India to help Cuba develop Renewable Energy resources
New Delhi: India has offered to help Cuba develop its renewable energy resources. This was conveyed by Dr. Farooq Abdullah, Minister of New and Renewable Energy to Mr. Marino Murillo, Vice president of the Republic of Cuba at Havana. Dr. Farooq Abdullah is visiting Cuba along with a high level delegation of experts to explore greater opportunities for cooperation and collaboration between the two countries. Dr. Abdullah also held detailed discussions with Mr. Alfredo Lopez Valdes, the Cuban Minister of Energy and Mines.
Dr. Abdullah briefed his counterpart on the energy situation in India and India’s ambitious plans in renewable energy. He explained that India currently has over 29 GW of grid-connected installed capacity using renewable sources of energy and that it has plans over to add over 30 GW more capacity by 2017. He also dwelt on the success of India’s wind programme as well as the significant cost reductions in solar energy through the Jawahar Lal Nehru National Solar Mission (JNNSM).
Both Mr. Murillo and Mr. Valdez informed the Indian Minister of Cuba’s strong desire to diversify its energy mix by exploiting its renewable energy resources, especially in wind and bagasse-based cogeneration projects. They sought India’s support and expertise in helping Cuba achieve this objective. Dr. Abdullah recalled India’s long standing and traditionally warm relations with Cuba and said that India has always supported the Cuban nation and its people. He offered India’s support and expertise in setting up renewable projects as well as in capacity building and project preparation. He also urged the Cuban side to take advantage of the Lines of Credit offered by India in setting up renewable energy projects.
Earlier Dr. Abdullah was given a brief on the achievements of Cuba in universalizing health care resulting in significant reductions in infant mortality and increase in life expectancy. He also visited the local polyclinic to understand first-hand the health systems and had detailed discussions there.
Dr. Abdullah briefed his counterpart on the energy situation in India and India’s ambitious plans in renewable energy. He explained that India currently has over 29 GW of grid-connected installed capacity using renewable sources of energy and that it has plans over to add over 30 GW more capacity by 2017. He also dwelt on the success of India’s wind programme as well as the significant cost reductions in solar energy through the Jawahar Lal Nehru National Solar Mission (JNNSM).
Both Mr. Murillo and Mr. Valdez informed the Indian Minister of Cuba’s strong desire to diversify its energy mix by exploiting its renewable energy resources, especially in wind and bagasse-based cogeneration projects. They sought India’s support and expertise in helping Cuba achieve this objective. Dr. Abdullah recalled India’s long standing and traditionally warm relations with Cuba and said that India has always supported the Cuban nation and its people. He offered India’s support and expertise in setting up renewable projects as well as in capacity building and project preparation. He also urged the Cuban side to take advantage of the Lines of Credit offered by India in setting up renewable energy projects.
Earlier Dr. Abdullah was given a brief on the achievements of Cuba in universalizing health care resulting in significant reductions in infant mortality and increase in life expectancy. He also visited the local polyclinic to understand first-hand the health systems and had detailed discussions there.
7th India-Russia Trade and Investment Forum focuses on Pharma, tourism and services
Endorses new framework for fast- tracking 15 high tech manufacturing collaborations
Russian Fertilizer companies in talk with IFFCO for JV
Anand Sharma pushes for regulatory simplification for Indian companies in Russia
New Delhi: A high level delegation of 120 Indian business leaders led by Union Minister of Commerce and Industry, Shri Anand Sharma discussed various business opportunities with their Russian counterparts at India-Russia Trade and Investment Forum at St. Petersburg on Friday. Special focus was on the three round tables on “Pharmaceutical and Medical Industry”, “Tourism and Medical Tourism” and “Trade in goods, services and innovative products”. On his return to India yesterday, Shri Sharma said “we discussed and noted the emerging opportunities in both the countries and we are hopeful that the three Round Tables have identified in detail the specific projects where we shall be cooperating.”
At the forum Pharmaceutical sector received major attention as India is looking at the opportunities that the 2020 Pharma programme offers. Shri Sharma sought regulatory simplifications for Indian companies who not only want to have market access but also look for establishing manufacturing base in Russia. In recently concluded 19th India Russia Working Group on Trade and Economic Cooperation (IRWGTEC) meeting in Moscow Indian side had conveyed the details of barriers in the trade of pharmaceutical products to Russia. These barriers included substantial delay in all approvals and dossier evaluation due to insufficient number of competent specialists, huge number of backlog of dossiers accumulated by the Russian health authorities, lack of information about stage of approval etc. All this leads to avoidable delay in supplies, commencement of production, and launch of new product in the market. Shri Sharma said that “as Indian pharma companies are keen to establish manufacturing bases in Russia, it is imperative that Russian government should address their concerns in an expeditious manner.”
Fertilizer sector has also attracted Indian interest for setting up manufacturing in Russia. Production of Phosphate and Potash in Russia by way of JV with Indian Fertilizer entities was discussed. There exist complimentarity between availability of fertilizer resources in Russia and growing fertilizer demand in India which should result in strategic partnership in this field. AKRON and ORGSINTEZ, the two Russian companies are in discussion with IFFCO as they have Potassic and Phosphatic resources. Both side discussed the need to support the proposal of M/s AKRON of Russia for setting up of facilities for production of Phosphate and Potash in Russia by way of JV with Indian Fertilizer entities. Furthermore, In January 2013, Secretary (Fertilizer) met the Russian Ministry of Industry and Trade and Russian fertilizer companies to explain new investment policy changes in urea production in India and invite them to invest in India under the new policy. A non-paper was also shared with the Russian side. During this visit Shri Sharma was informed of Russian companies expressing interest in the proposition and companies on both sides are expected to identify opportunities for investment in urea production in India.
The Forum in its 7th edition with specific purpose of ‘encouraging discussion among the businesses of the two sides to increase economic engagement for common benefits’ concluded that fresh initiatives need to be taken to further exploit complementarities in other sectors such as fertilizers, industrial machinery, diamonds etc. Other new areas such as automobiles, electrical equipment, chemicals, mining and processed foods need to be explored as they have immense potential in both countries. Another area identified for focused approach between India and Russia is IT Services. This conclusion is an endorsement of the sector that have been identified in Joint Understanding & Intention on Possible Plans and Priority Investment Projects for Enhancing Indo-Russian Economic & Investment Cooperation Under which a total of 15 high value, high tech projects have been selected for special attention for ministerial supervision. Some of the projects are
The establishment of India-Russian Joint venture with “Hindustan Aeronautics Ltd.” (HAL) as joint centre of development the helicopters.
Production of Nitrogen Tetra Oxide for Space programme
Possible future cooperation between MMTC and ALROSA for long term supply of rough diamonds
ONGC Videsh Ltd. (OVL)’s prospects for further hydrocarbon collaboration with Russian energy companies
Joint project of Ranbaxy Laboratories Limited (RLL) and Government of Yaroslavl region
Participation of Russian companies in urea production in India under new investment policy.
Plant construction for manufacturing butyl rubber with capacity of 100000 tons per year at the production site of “Reliance Industries” in Jamnagar (India).
Shri Sharma also met Mr. Alksey Ulyukaev, Minister of Economic Development and took forward the discussion that he had with Mr. Dmitry Rogozin, Deputy Prime Minister, Mr. Denis Manturov, Minister of Industry and Trade a day before. This visit assumes significance as the Prime Minister Dr Manmohan Singh is likely to visit Russia next month.
Russian Fertilizer companies in talk with IFFCO for JV
Anand Sharma pushes for regulatory simplification for Indian companies in Russia
New Delhi: A high level delegation of 120 Indian business leaders led by Union Minister of Commerce and Industry, Shri Anand Sharma discussed various business opportunities with their Russian counterparts at India-Russia Trade and Investment Forum at St. Petersburg on Friday. Special focus was on the three round tables on “Pharmaceutical and Medical Industry”, “Tourism and Medical Tourism” and “Trade in goods, services and innovative products”. On his return to India yesterday, Shri Sharma said “we discussed and noted the emerging opportunities in both the countries and we are hopeful that the three Round Tables have identified in detail the specific projects where we shall be cooperating.”
At the forum Pharmaceutical sector received major attention as India is looking at the opportunities that the 2020 Pharma programme offers. Shri Sharma sought regulatory simplifications for Indian companies who not only want to have market access but also look for establishing manufacturing base in Russia. In recently concluded 19th India Russia Working Group on Trade and Economic Cooperation (IRWGTEC) meeting in Moscow Indian side had conveyed the details of barriers in the trade of pharmaceutical products to Russia. These barriers included substantial delay in all approvals and dossier evaluation due to insufficient number of competent specialists, huge number of backlog of dossiers accumulated by the Russian health authorities, lack of information about stage of approval etc. All this leads to avoidable delay in supplies, commencement of production, and launch of new product in the market. Shri Sharma said that “as Indian pharma companies are keen to establish manufacturing bases in Russia, it is imperative that Russian government should address their concerns in an expeditious manner.”
Fertilizer sector has also attracted Indian interest for setting up manufacturing in Russia. Production of Phosphate and Potash in Russia by way of JV with Indian Fertilizer entities was discussed. There exist complimentarity between availability of fertilizer resources in Russia and growing fertilizer demand in India which should result in strategic partnership in this field. AKRON and ORGSINTEZ, the two Russian companies are in discussion with IFFCO as they have Potassic and Phosphatic resources. Both side discussed the need to support the proposal of M/s AKRON of Russia for setting up of facilities for production of Phosphate and Potash in Russia by way of JV with Indian Fertilizer entities. Furthermore, In January 2013, Secretary (Fertilizer) met the Russian Ministry of Industry and Trade and Russian fertilizer companies to explain new investment policy changes in urea production in India and invite them to invest in India under the new policy. A non-paper was also shared with the Russian side. During this visit Shri Sharma was informed of Russian companies expressing interest in the proposition and companies on both sides are expected to identify opportunities for investment in urea production in India.
The Forum in its 7th edition with specific purpose of ‘encouraging discussion among the businesses of the two sides to increase economic engagement for common benefits’ concluded that fresh initiatives need to be taken to further exploit complementarities in other sectors such as fertilizers, industrial machinery, diamonds etc. Other new areas such as automobiles, electrical equipment, chemicals, mining and processed foods need to be explored as they have immense potential in both countries. Another area identified for focused approach between India and Russia is IT Services. This conclusion is an endorsement of the sector that have been identified in Joint Understanding & Intention on Possible Plans and Priority Investment Projects for Enhancing Indo-Russian Economic & Investment Cooperation Under which a total of 15 high value, high tech projects have been selected for special attention for ministerial supervision. Some of the projects are
The establishment of India-Russian Joint venture with “Hindustan Aeronautics Ltd.” (HAL) as joint centre of development the helicopters.
Production of Nitrogen Tetra Oxide for Space programme
Possible future cooperation between MMTC and ALROSA for long term supply of rough diamonds
ONGC Videsh Ltd. (OVL)’s prospects for further hydrocarbon collaboration with Russian energy companies
Joint project of Ranbaxy Laboratories Limited (RLL) and Government of Yaroslavl region
Participation of Russian companies in urea production in India under new investment policy.
Plant construction for manufacturing butyl rubber with capacity of 100000 tons per year at the production site of “Reliance Industries” in Jamnagar (India).
Shri Sharma also met Mr. Alksey Ulyukaev, Minister of Economic Development and took forward the discussion that he had with Mr. Dmitry Rogozin, Deputy Prime Minister, Mr. Denis Manturov, Minister of Industry and Trade a day before. This visit assumes significance as the Prime Minister Dr Manmohan Singh is likely to visit Russia next month.
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