Mumbai: The tide has turned for the telecom sector in India, as growth and profitability has accelerated in recent times. Tower companies are reaping benefits of a turnaround in the sector as operators have started investing in networks to boost data penetration.
Bharti Infratel, a leading tower and infrastructure player, reported robust numbers for the fourth quarter. The company’s consolidated revenues for the March quarter grew four per cent to Rs 2,790 crore compared to the corresponding quarter last year, while consolidated Ebitda grew 16 per cent year-on-year to Rs 1,160 crore. For the full year, revenues grew five per cent to Rs 10,800 crore and Ebitda by 16 per cent to Rs 4,400 crore.
But the real number to track is the tower sharing factor and operating free cash flow (operating profit minus capital expenditure). The company’s tower sharing factor has moved up to two at the end of March from 1.91 a year ago. On a consolidated basis, the average sharing factor stood at 1.96. What this implies is that for incremental capex, the company's profitability is increasing as more companies use the same infrastructure and location.
Analysts say the growth in profitability will not be driven by a higher number of towers added but higher tenancies. In this context, Bharti Infratel stands to gain from the deal it has signed with Reliance Jio.
A detailed report on Bharti Infratel by Nomura, says: “R-Jio’s recent press releases indicate a lot of focus on the data segment including digital services; this coupled with its higher frequency bandwidth (1,800 Mhz and 2,300 MHz) should see a high number of base stations being rolled out. For the bulk of these, we expect R-Jio to lease towers to enter the market sooner.”
With tower sharing factor improving and capital expenditure on new towers remaining stable, the company’s operating income and free cash flows are expected to steadily increase. Consolidated free cash flows increased during the March quarter increased by 12 per cent to Rs 539 crore. For the full financial year, Bharti Infratel's free cash flows jumped 48 per cent year-on-year to Rs 2,600 crore.
Bharti Infratel has spent Rs 1,500 crore on capital expenditure and in FY15 it will be Rs 2,000 crore. Analysts estimates a 20-23 per cent free cash flow compounded annual growth rate over FY13-16. The company’s free cash flow yield is also highest amongst global tower companies.
Success in my Habit
Sunday, April 27, 2014
IndusInd Bank to foray into asset reconstruction
Kolkata: IndusInd Bank plans to start asset reconstruction business in the next couple of months. The private-sector lender has already firmed up its business strategy and plans to partner asset reconstruction companies (ARCs) for this new business venture.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
DoT to showcase India as telecom gear manufacturing hub in Israel
Kolkata: A top level telecom department (DoT) team will participate in a global convention next month in Israel to showcase India as a world-class networks gear manufacturing hub amid mounting concerns in the US and Europe about India's local sourcing and screening rules.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
Delhi Airport to become zero diversionary airport
New Delhi: Delhi Airport will soon become a zero-diversionary airport, as the Committee set up in January this year, by the Director General of Civil Aviation, to look into the matter, has submitted its report with 27 recommendations. The Terms of Reference of the Committee were :-
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
Thursday, April 24, 2014
German tyre major Continental bets big on India
New Delhi: German tyre major Continental has said India will be a key focus market for the company for new investments as it expands here following the acquisition of Modi Tyres in 2011. The company said it is also open to fresh acquisitions in India to gain a sizeable foothold faster, though there are no immediate targets.
"India is a critical market for Continental and despite short-term challenges, I strongly believe that that it is a strong long-term prospect," Nikolai Setzer, member of Continental's executive board and head of tyre division, told TOI here.
The company sells truck/bus radial and bias tyres, which are manufactured at its plant at Modipuram in Uttar Pradesh. Also, it is present in the passenger car tyre market, while making two-wheeler tyres in partnership with Metro Tyres.
Setzer, who heads Continental's 9.6 billion euro tyre business, said India and other BRIC countries are crucial for registering growth as traditional strongholds in the West decline. "Europe and North America contribute 83% to our sales. But, these regions are only stable and not growing. Out of these mature markets, you can only get a growth of 1-2%.From emerging countries, you can still expect a growth of 4-5%. It can be more in a certain year."
"Last year, we invested about 800 million euros in the tyre division... (and) it is fair to assume that a big portion has gone to BRIC countries." The company has similar investment plans for this year, and Setzer said a substantial portion will again come to BRIC countries. "BRIC will remain a big focus in 2014 as well."
Speaking about the Indian market, he said that having local production adds strength to the company's product portfolio. "We have found the right set-up. We have an installed capacity for bias tyres and these are expected to be a substantial part of the market for some time. Installing radials in that plant also gives us great economies of scale and a leverage that we can use."
Setzer conceded that competition in the Indian market is intense considering that there are strong local players like Apollo, MRF and JK Tyres apart from global biggies like Michelin. "I have not found even one market in the world that is easy to crack... But looking at the market here in India for us, we have now local production for our range. We have premium technology, we have a very experienced sales team that knows the market very well, and we have good dealers. We believe we have everything which we need and a very good package to be successful in the market and find our market place. We see there is room for us."
Asked whether the company is open to fresh acquisitions after buying out Modi in 2011, he said there are no immediate plans, though the company is always open for the right opportunity."We just acquired Modi Tyres in 2011. We have invested 50 million euros which is substantial and which we are currently ramping up. The appetite right now for an additional acquisition is very limited. We have to ramp this up first and make it successful. However, we have the financial means and we are open, and do monitor the market. If there is a great opportunity, we will never rule it out."
"India is a critical market for Continental and despite short-term challenges, I strongly believe that that it is a strong long-term prospect," Nikolai Setzer, member of Continental's executive board and head of tyre division, told TOI here.
The company sells truck/bus radial and bias tyres, which are manufactured at its plant at Modipuram in Uttar Pradesh. Also, it is present in the passenger car tyre market, while making two-wheeler tyres in partnership with Metro Tyres.
Setzer, who heads Continental's 9.6 billion euro tyre business, said India and other BRIC countries are crucial for registering growth as traditional strongholds in the West decline. "Europe and North America contribute 83% to our sales. But, these regions are only stable and not growing. Out of these mature markets, you can only get a growth of 1-2%.From emerging countries, you can still expect a growth of 4-5%. It can be more in a certain year."
"Last year, we invested about 800 million euros in the tyre division... (and) it is fair to assume that a big portion has gone to BRIC countries." The company has similar investment plans for this year, and Setzer said a substantial portion will again come to BRIC countries. "BRIC will remain a big focus in 2014 as well."
Speaking about the Indian market, he said that having local production adds strength to the company's product portfolio. "We have found the right set-up. We have an installed capacity for bias tyres and these are expected to be a substantial part of the market for some time. Installing radials in that plant also gives us great economies of scale and a leverage that we can use."
Setzer conceded that competition in the Indian market is intense considering that there are strong local players like Apollo, MRF and JK Tyres apart from global biggies like Michelin. "I have not found even one market in the world that is easy to crack... But looking at the market here in India for us, we have now local production for our range. We have premium technology, we have a very experienced sales team that knows the market very well, and we have good dealers. We believe we have everything which we need and a very good package to be successful in the market and find our market place. We see there is room for us."
Asked whether the company is open to fresh acquisitions after buying out Modi in 2011, he said there are no immediate plans, though the company is always open for the right opportunity."We just acquired Modi Tyres in 2011. We have invested 50 million euros which is substantial and which we are currently ramping up. The appetite right now for an additional acquisition is very limited. We have to ramp this up first and make it successful. However, we have the financial means and we are open, and do monitor the market. If there is a great opportunity, we will never rule it out."
M&M in pact to source seed potato from Holland
Mumbai: The agriculture division of Mahindra & Mahindra has entered into a joint venture with Holland-based seed company HZPC for sourcing high quality potato seeds for Indian farmers.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
JSW Steel to commission cold rolling mill in Karnataka tomorrow
Bellary: JSW Steel will commission a Rs. 4,500-crore Cold Rolling Mill (CRM) at its integrated steel plant in Torangal, Karnataka, on Friday.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
Infosys, Orange offer TV apps with customised content
Bangalore: Infosys has partnered with telecom company Orange to provide Internet TV to its customers.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
Canon sets sights on India security-camera market
Hyderabad: At a time when regular compact cameras are losing ground to smartphones equipped with mega-pixel cameras, digital imaging firm Canon India is planning to get into the network security camera market.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
Synechron enters Hyderabad, Bangalore to be 'closer to clients'
Hyderabad: Synechron, which provides IT solutions for the financial services industry, will invest $30-35 million on its expansion in India.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
Shanghai incubator park invites Indian tech companies
Hyderabad: The Shanghai Jiading Advanced Technology Innovation and Business Incubator has set out the red carpet for Indian technology innovators and SMEs, especially in renewable energy, biomedical devices and advanced manufacturing.
A team of officials from the Jiading facility, which has about 130 companies, visited Hyderabad to interact with industrialists and research institutions.
The team is marketing the facility as the first step to enter into the Chinese market, as setting up a unit there has become easier since the Shanghai administration unrolled reforms in the form of a free trade zone policy last year.
“We not only help incubators and start-ups set up their business in Jiading, but we also invest in early stage companies and help other businesses to raise resources,” Jia Zeng Qiang, deputy director, told a meeting of entrepreneurs organised by the Federation of AP Chambers of Commerce and Industries here today.
He said they were especially focussing on innovative technology companies, which can share and grow their technologies jointly with similar Chinese companies.
Satyam-Venture Engineering Services ltd, which provides automotive engineering solutions, is one of the first Indian companies to set up a unit at the Jiading facility. “Our experience has been good. We are now looking at setting up a laboratory there and later expanding into other parts of China,” PV Krishnakumar, Vice-President of the company, said.
A team of officials from the Jiading facility, which has about 130 companies, visited Hyderabad to interact with industrialists and research institutions.
The team is marketing the facility as the first step to enter into the Chinese market, as setting up a unit there has become easier since the Shanghai administration unrolled reforms in the form of a free trade zone policy last year.
“We not only help incubators and start-ups set up their business in Jiading, but we also invest in early stage companies and help other businesses to raise resources,” Jia Zeng Qiang, deputy director, told a meeting of entrepreneurs organised by the Federation of AP Chambers of Commerce and Industries here today.
He said they were especially focussing on innovative technology companies, which can share and grow their technologies jointly with similar Chinese companies.
Satyam-Venture Engineering Services ltd, which provides automotive engineering solutions, is one of the first Indian companies to set up a unit at the Jiading facility. “Our experience has been good. We are now looking at setting up a laboratory there and later expanding into other parts of China,” PV Krishnakumar, Vice-President of the company, said.
TCS, Mitsubishi form $600-m IT services firm
Mumbai: Tata Consultancy Services will merge its two units in Japan with Mitsubishi Corp’s IT subsidiary to create a joint venture company with a revenue base of $600 million in the world’s second-largest market for software services.
Two of TCS’ existing units, Nippon TCS Solution Center Ltd (NTSC) and TCS Japan, will be consolidated with IT Frontier Corp (ITF), the $500-million IT subsidiary of Tokyo-based Mitsubishi Corp.
The new entity, TCS Japan, will have annual revenues of $600 million and a headcount of 2,400. TCS will invest about $50 million ( Rs. 300 crore) to acquire a 51 per cent stake in TCS Japan, with Mitsubishi owning the rest, N Chandrasekaran, TCS Chief Executive Officer and Managing Director, said at a news conference here on Monday.
Scaling up
The joint venture firm will help TCS build scale and acquire new clients in Japan, he added. Before the merger, TCS’ Japan revenues amounted to $100 million.
The Japanese IT services market is worth $100 billion but it accounts for less than 2 per cent of India’s software exports. None of the home-bred IT firms has crossed the $150-million-revenue threshold in Japan, said Arup Roy, Research Director at advisory firm Gartner. Japanese companies have traditionally preferred either local or Chinese firms for technology outsourcing work. The Mumbai-based company will have the option of raising its stake in TCS Japan to 65 per cent at the end of five years, said TCS’ Chief Financial Officer Rajesh Gopinathan.
Mitsubishi, a diversified conglomerate, will contribute about $250 million to the joint venture’s revenue. Tata Japan will get access to several of ITF’s customers in sectors such as financial services, retail, hi-tech and manufacturing, Chandrasekaran said.
Two of TCS’ existing units, Nippon TCS Solution Center Ltd (NTSC) and TCS Japan, will be consolidated with IT Frontier Corp (ITF), the $500-million IT subsidiary of Tokyo-based Mitsubishi Corp.
The new entity, TCS Japan, will have annual revenues of $600 million and a headcount of 2,400. TCS will invest about $50 million ( Rs. 300 crore) to acquire a 51 per cent stake in TCS Japan, with Mitsubishi owning the rest, N Chandrasekaran, TCS Chief Executive Officer and Managing Director, said at a news conference here on Monday.
Scaling up
The joint venture firm will help TCS build scale and acquire new clients in Japan, he added. Before the merger, TCS’ Japan revenues amounted to $100 million.
The Japanese IT services market is worth $100 billion but it accounts for less than 2 per cent of India’s software exports. None of the home-bred IT firms has crossed the $150-million-revenue threshold in Japan, said Arup Roy, Research Director at advisory firm Gartner. Japanese companies have traditionally preferred either local or Chinese firms for technology outsourcing work. The Mumbai-based company will have the option of raising its stake in TCS Japan to 65 per cent at the end of five years, said TCS’ Chief Financial Officer Rajesh Gopinathan.
Mitsubishi, a diversified conglomerate, will contribute about $250 million to the joint venture’s revenue. Tata Japan will get access to several of ITF’s customers in sectors such as financial services, retail, hi-tech and manufacturing, Chandrasekaran said.
Snapdeal buys product discovery site Doozton
Mumbai: Online marketplace Snapdeal.com has acquired product discovery technology firm Doozton.com for an undisclosed amount.
Doozton helps consumers discover trending products and designs from across online fashion portals in India. It also offers suggestions as to what to wear and what to buy for different occasions.
Snapdeal, which got about $134 million in its fourth round of funding from existing investors led by eBay early this year, is also strengthening its position in the apparel and accessories segment through acquisitions and tie-ups.
Industry reports suggest that fashion is the fastest growing category that contributes about 40 per cent of overall sales for any online portal. Growth is happening on the back of growing aspiration, awareness about global trends, and unavailability of brands in smaller towns and an increased usage of smartphones.
Rohit Bansal, Co-Founder and COO, Snapdeal.com, said, “In a short span of time since its inception, Doozton.com has earned popularity amongst its users, making shopping fun, easy and social with the best of fashion and lifestyle product suggestions including clothes, shoes and accessories for men and women. We have seen a 10 times growth in our fashion categories in the last 12 months, and we foresee the benefits of this acquisition will boost this growth.”
Pushpendra Singh, an IIT alumnus and founder of Doozton.com, said that with Snapdeal, the technology of Doozton.com would get a more established platform. Doozton was founded in March 2013.
Doozton helps consumers discover trending products and designs from across online fashion portals in India. It also offers suggestions as to what to wear and what to buy for different occasions.
Snapdeal, which got about $134 million in its fourth round of funding from existing investors led by eBay early this year, is also strengthening its position in the apparel and accessories segment through acquisitions and tie-ups.
Industry reports suggest that fashion is the fastest growing category that contributes about 40 per cent of overall sales for any online portal. Growth is happening on the back of growing aspiration, awareness about global trends, and unavailability of brands in smaller towns and an increased usage of smartphones.
Rohit Bansal, Co-Founder and COO, Snapdeal.com, said, “In a short span of time since its inception, Doozton.com has earned popularity amongst its users, making shopping fun, easy and social with the best of fashion and lifestyle product suggestions including clothes, shoes and accessories for men and women. We have seen a 10 times growth in our fashion categories in the last 12 months, and we foresee the benefits of this acquisition will boost this growth.”
Pushpendra Singh, an IIT alumnus and founder of Doozton.com, said that with Snapdeal, the technology of Doozton.com would get a more established platform. Doozton was founded in March 2013.
Videocon set to acquire Datsons Labs for Rs 350 cr
Mumbai: Videocon Industries is set to acquire Dr Datsons Labs Ltd (DTL) at an enterprise value of Rs 350 crore. Sources said negotiations in this regard were in advanced stages and a deal might be signed soon.
“We are in talks with a couple of merchant bankers for a possible sale. At the same time, we are also evaluating other options, including investments into the company, to meet our proposed capital expenditure plan for expansion projects. By next week, we will be finalising the name of the merchant banker for a possible stake sale,” said DTL Vice-chairman Kannan Vishwanath.
Sources said Videocon had written to Bank of Baroda to extend Rs 35 crore of credit to acquire additional stake in DTL.
Videocon Industries Chairman Venugopal Dhoot declined to comment.
Promoters hold about 40 per cent stake in DTL. In the quarter ended March, foreign portfolio investors, including Davos International Fund, Leman Diversified Fund, Stream Value Fund and Kuvera Fund, acquired 9.35 per cent in DTL from various domestic individual and institutional investors.
During the March quarter, Videocon, through its subsidiaries, had increased its stake in DTL to 19 per cent. In the previous quarter, it held nine per cent stake.
A leading broker on BSE and the National Stock Exchange said the market was abuzz with speculation of Videocon acquiring DTL.
“We are looking for capital investment at least of Rs 250 crore for our proposed expansion in Mahad and Pune. We have already applied for 17 patents of anti-cancer drugs, for which plants and machinery are already in place. With the new investments, we will commence production on these plants,” said Vishwanath. “Through fresh capital infusion, we want to ramp up our presence in developed regions, including Europe and the US.”
DTL, a research-focused pharmaceuticals company, manufactures active pharmaceutical ingredients (APIs) and finished dosage forms and provides contract research and manufacturing services. It focuses on five niche business areas — anti-malaria, multi-therapeutic lozenges, oncology products, HIV products and codeine-based cough syrups. The market leader in the anti-malarial API segment, it is present in 61 countries.
DTL’s market capitalisation stands at Rs 121 crore. The company stock fell to Rs 38.4 at close of trade on BSE, against its previous close of Rs 45.7.
“We are in talks with a couple of merchant bankers for a possible sale. At the same time, we are also evaluating other options, including investments into the company, to meet our proposed capital expenditure plan for expansion projects. By next week, we will be finalising the name of the merchant banker for a possible stake sale,” said DTL Vice-chairman Kannan Vishwanath.
Sources said Videocon had written to Bank of Baroda to extend Rs 35 crore of credit to acquire additional stake in DTL.
Videocon Industries Chairman Venugopal Dhoot declined to comment.
Promoters hold about 40 per cent stake in DTL. In the quarter ended March, foreign portfolio investors, including Davos International Fund, Leman Diversified Fund, Stream Value Fund and Kuvera Fund, acquired 9.35 per cent in DTL from various domestic individual and institutional investors.
During the March quarter, Videocon, through its subsidiaries, had increased its stake in DTL to 19 per cent. In the previous quarter, it held nine per cent stake.
A leading broker on BSE and the National Stock Exchange said the market was abuzz with speculation of Videocon acquiring DTL.
“We are looking for capital investment at least of Rs 250 crore for our proposed expansion in Mahad and Pune. We have already applied for 17 patents of anti-cancer drugs, for which plants and machinery are already in place. With the new investments, we will commence production on these plants,” said Vishwanath. “Through fresh capital infusion, we want to ramp up our presence in developed regions, including Europe and the US.”
DTL, a research-focused pharmaceuticals company, manufactures active pharmaceutical ingredients (APIs) and finished dosage forms and provides contract research and manufacturing services. It focuses on five niche business areas — anti-malaria, multi-therapeutic lozenges, oncology products, HIV products and codeine-based cough syrups. The market leader in the anti-malarial API segment, it is present in 61 countries.
DTL’s market capitalisation stands at Rs 121 crore. The company stock fell to Rs 38.4 at close of trade on BSE, against its previous close of Rs 45.7.
Tuesday, April 15, 2014
Kerala-based firm holding trials to make turmeric a food supplement
Kochi: Arjuna Natural Extracts Ltd is pinning its hopes on clinical trials of the value-added properties of turmeric for its usage as a food supplement.
The Kerala-based company is carrying out human clinical trials on this spice with the support of Spices Board to promote its value-addition.
PJ Kunjachan, Chairman and Managing Director, said that he is confident of positive results and this would give a major boost to turmeric in developed countries in the food supplement category, which is growing at 15 per cent every year.
He said that turmeric was used usually as a natural colour pigment for food applications and there was no value addition even in the traditional ayurveda due to lack of awareness among people.
However, the good response received by the company for its turmeric extract – BCM 95 – from developed countries has prompted to go for clinical trials, he said.
BCM 95 is a patented formulation of curcumin, the bio active concept of turmeric with anti-oxidant, anti-inflammatory and anti-cancer properties, he said.
Turmeric can be converted as an ideal health food supplement with some value addition. Even the clinical trials conducted on BCM 95 in association with American and Australian universities have got good response for its usage in pharma and neutraceuticals, he said.
Apart form turmeric extracts, the company also developed amla , green tea, pomegranate, ginger, Omega 3 fatty acid from fish oils, red spinach and mustard. Arjuna is the only company in India to develop Omega 3 fatty acid catering to the requirements of pharmaceutical companies both in India and overseas, he said.
The company has invested Rs. 10 crore at its Keezhmadu R&D centre for the extraction of medicinal values for various botanicals included keezharnelli (Phyllanthus Niruri), insulin plant (Costus Pictus), Bosewellia Serrata.
Arjuna was established in 1992 for spice-related products. Eventually it moved into studying medicinal value of spices and other botanicals.
Today, it has 18 patented products out of which 11 have been commercialised globally. He said 95 per cent of the extracts have been exported to around 40 countries. On future plans, he said that the vision is to convert promising botanical extracts into drugs in association with big pharma companies.
The Kerala-based company is carrying out human clinical trials on this spice with the support of Spices Board to promote its value-addition.
PJ Kunjachan, Chairman and Managing Director, said that he is confident of positive results and this would give a major boost to turmeric in developed countries in the food supplement category, which is growing at 15 per cent every year.
He said that turmeric was used usually as a natural colour pigment for food applications and there was no value addition even in the traditional ayurveda due to lack of awareness among people.
However, the good response received by the company for its turmeric extract – BCM 95 – from developed countries has prompted to go for clinical trials, he said.
BCM 95 is a patented formulation of curcumin, the bio active concept of turmeric with anti-oxidant, anti-inflammatory and anti-cancer properties, he said.
Turmeric can be converted as an ideal health food supplement with some value addition. Even the clinical trials conducted on BCM 95 in association with American and Australian universities have got good response for its usage in pharma and neutraceuticals, he said.
Apart form turmeric extracts, the company also developed amla , green tea, pomegranate, ginger, Omega 3 fatty acid from fish oils, red spinach and mustard. Arjuna is the only company in India to develop Omega 3 fatty acid catering to the requirements of pharmaceutical companies both in India and overseas, he said.
The company has invested Rs. 10 crore at its Keezhmadu R&D centre for the extraction of medicinal values for various botanicals included keezharnelli (Phyllanthus Niruri), insulin plant (Costus Pictus), Bosewellia Serrata.
Arjuna was established in 1992 for spice-related products. Eventually it moved into studying medicinal value of spices and other botanicals.
Today, it has 18 patented products out of which 11 have been commercialised globally. He said 95 per cent of the extracts have been exported to around 40 countries. On future plans, he said that the vision is to convert promising botanical extracts into drugs in association with big pharma companies.
Dr Batra's plans to open 53 clinics in India
Chennai: Dr Batra’s, a leading homeopathy chain in India, plans to open 25 company-owned clinics within the country and 10 such clinics abroad. It also plans to add 28 franchisee-owned clinics this year in India. At the moment, there are 119 company-owned clinics (including three abroad) and 22 franchisee-run clinics across the country, said founder and chairman Mukesh Batra. Through the franchisee model, the company plans to penetrate Tier-III and Tier-IV towns. “It is important to have a local partner who can understand the local sentiment. Besides, the company cannot penetrate at that level,” said Batra. He added that 11 franchisees had completed one year and they’ve recovered their investments in nine to 10 months. Over the next two-to-three years, the company plans to open 10 clinics in West Asia and one in London. Each of these clinics would cost Rs 1 crore, said Sandeep Saxena, chief executive, Dr Batra’s Group.
Saxena added that the company would invest about Rs 10 crore this year in new clinics in India in building manufacturing facility as well as adding other infrastructure. "The investments will be funded through debt and internal accruals. We have not thought about roping in an investor so far," said Batra.
Commenting on the company's performance, he said last year was the year of consolidation and the firm is ready to grow from this year onwards.
Last year, the group had started new verticals including media (to publish a magazine), hospital for pets, academy, and added a second clinic in Dubai. Today, the company's products are available across 600 outlets and the target is to take it to 4,000 outlets by 2015, said Batra.
The group has set a target to grow 40-50% in 2014-15. It had reported a turnover of Rs 152 crore in 2013-14 and Rs 135 crore in the previous year.
Saxena added that the company would invest about Rs 10 crore this year in new clinics in India in building manufacturing facility as well as adding other infrastructure. "The investments will be funded through debt and internal accruals. We have not thought about roping in an investor so far," said Batra.
Commenting on the company's performance, he said last year was the year of consolidation and the firm is ready to grow from this year onwards.
Last year, the group had started new verticals including media (to publish a magazine), hospital for pets, academy, and added a second clinic in Dubai. Today, the company's products are available across 600 outlets and the target is to take it to 4,000 outlets by 2015, said Batra.
The group has set a target to grow 40-50% in 2014-15. It had reported a turnover of Rs 152 crore in 2013-14 and Rs 135 crore in the previous year.
Gamesa India to commission 800MW of wind power projects in 2014-15
Chennai: Gamesa India, which was one of the top wind turbine makers during 2013-14, is targeting 800MW of wind power capacity addition across the country in 2014-15.
The company currently has over 200MW of windmills ready to be commissioned and has orders on hand for about 600MW.
The company commissioned 400MW of projects during 2013-14, topping the list of wind turbine manufacturers in the country during the year. Gamesa has now crossed 1000MW of installed capacity in India.
The Spanish company, which started operations in India in 2010, now contributes 22% of Gamesa's global sales. Gamesa globally had a turnover of 2.3 billion euro in 2013 and contribution from the Indian operations went up to 22% from 12% in 2012.
"The market in India will go up substantially and Gamesa India will gradually increase its contribution to the global sales," Ramesh Kymal, chairman & managing director, Gamesa India, said.
Gamesa, one of the top six wind turbine makers in the world, has invested over Rs 1,500 crore for its Indian operations over the last four years for its manufacturing units in Tamil Nadu and Gujarat.
Apart from preparing for the orders on hand, Gamesa India has also developed a strong 'megawatt pipeline,' which refers to preparedness to execute orders after completing all the preparatory work such as acquiring land and approvals to set up the wind farms.
The company currently has over 200MW of windmills ready to be commissioned and has orders on hand for about 600MW.
The company commissioned 400MW of projects during 2013-14, topping the list of wind turbine manufacturers in the country during the year. Gamesa has now crossed 1000MW of installed capacity in India.
The Spanish company, which started operations in India in 2010, now contributes 22% of Gamesa's global sales. Gamesa globally had a turnover of 2.3 billion euro in 2013 and contribution from the Indian operations went up to 22% from 12% in 2012.
"The market in India will go up substantially and Gamesa India will gradually increase its contribution to the global sales," Ramesh Kymal, chairman & managing director, Gamesa India, said.
Gamesa, one of the top six wind turbine makers in the world, has invested over Rs 1,500 crore for its Indian operations over the last four years for its manufacturing units in Tamil Nadu and Gujarat.
Apart from preparing for the orders on hand, Gamesa India has also developed a strong 'megawatt pipeline,' which refers to preparedness to execute orders after completing all the preparatory work such as acquiring land and approvals to set up the wind farms.
M&M unit in tie-up with Belgian fresh produce firm UNIVEG
Mumbai: Giving a fresh impetus to its agri-business, Mahindra ShubhLabh Services, which is a subsidiary of Mahindra & Mahindra, has entered into a 60:40 joint venture with UNIVEG, a Belgium-based €3.2 billion fresh produce company, in which it will have a majority stake.
The joint venture company would be investing Rs. 30 crore in the first two years, with additional investments made by logistics and supply chain partners.
Focus on quality
The joint venture company would focus on developing a fresh fruit supply chain to provide high quality fruits for domestic and international markets.
Other than grapes, the venture would focus on select fruits such as bananas, apples, pears and citrus fruits.
Pawan Goenka, Executive Director, Mahindra & Mahindra said: “This joint venture would enable both companies to leverage each other’s strengths by further improving the fresh produce supply chain through various interventions and investments across India.”
In November 2013, Mahindra ShubhLabh Services launched its fresh fruit brand Saboro, for the health-conscious Indian consumer. Fruits from the new venture would also be marketed under the Saboro brand.
Right mix
Hein Deprez, Executive Chairman and major shareholder, UNIVEG Group added: “We consider this association the right mix of market presence and farmer connect. Mahindra’s reach, together with our proven technical expertise across six continents and 32 distribution centres in Europe, would be beneficial for all stakeholders”.
The joint venture company would be investing Rs. 30 crore in the first two years, with additional investments made by logistics and supply chain partners.
Focus on quality
The joint venture company would focus on developing a fresh fruit supply chain to provide high quality fruits for domestic and international markets.
Other than grapes, the venture would focus on select fruits such as bananas, apples, pears and citrus fruits.
Pawan Goenka, Executive Director, Mahindra & Mahindra said: “This joint venture would enable both companies to leverage each other’s strengths by further improving the fresh produce supply chain through various interventions and investments across India.”
In November 2013, Mahindra ShubhLabh Services launched its fresh fruit brand Saboro, for the health-conscious Indian consumer. Fruits from the new venture would also be marketed under the Saboro brand.
Right mix
Hein Deprez, Executive Chairman and major shareholder, UNIVEG Group added: “We consider this association the right mix of market presence and farmer connect. Mahindra’s reach, together with our proven technical expertise across six continents and 32 distribution centres in Europe, would be beneficial for all stakeholders”.
P&G to invest Rs. 244 crore in Indian arm
Mumbai: World’s largest consumer goods manufacturer Procter and Gamble (P&G) plans to invest about Rs. 244 crore in its unlisted Indian arm P&G Home Products this year.
This investment is a part of its overall commitment to take on competitor and the country’s largest fast-moving consumer goods firm Hindustan Unilever Ltd (HUL) in terms of product portfolio and reach.
While, P&G India’s overall sales are estimated at Rs. 6,000 crore, HUL is almost four times bigger at Rs. 26,000 crore.
But they both compete in several key segments such as detergents, hair and skin care where HUL by far is the market leader.
P&G India, in a board meeting held last month, had decided to issue 31.68 lakh of shares of 10 each at a premium of Rs. 760 to its $32-billion parent company.
The fresh funds earmarked for India takes P&G's total investment in the country to around Rs. 1,000 crore in the fiscal ended March 2014.
While the company declined to comment on the development as it was in a silent period, it is understood that the funds would be used for capital expenditure, increasing the company’s marketing activity, innovation and expanding its distribution network in the country.
Mass offerings
P&G India has reported double-digit growth consistently in the last few years with its brands Whisper, Pantene, Oral B, Vicks, Gillette, Ariel and Tide.
But still, it has not been able to catch up with HUL due to its premium offerings.
Analysts feel P&G is more into the value game unlike HUL, which has products in the mass-end such as Wheel and Lifebuoy.
P&G's increased investments could be to enter the market with more mass offerings and also to raise its advertisement spends. The company also plans to revisit its ‘Project 2-3-4’, which is aimed at doubling the number of Indians who use its products, trebling per capita spending by Indians on its products and quadrupling net sales in India by 2015.
This investment is a part of its overall commitment to take on competitor and the country’s largest fast-moving consumer goods firm Hindustan Unilever Ltd (HUL) in terms of product portfolio and reach.
While, P&G India’s overall sales are estimated at Rs. 6,000 crore, HUL is almost four times bigger at Rs. 26,000 crore.
But they both compete in several key segments such as detergents, hair and skin care where HUL by far is the market leader.
P&G India, in a board meeting held last month, had decided to issue 31.68 lakh of shares of 10 each at a premium of Rs. 760 to its $32-billion parent company.
The fresh funds earmarked for India takes P&G's total investment in the country to around Rs. 1,000 crore in the fiscal ended March 2014.
While the company declined to comment on the development as it was in a silent period, it is understood that the funds would be used for capital expenditure, increasing the company’s marketing activity, innovation and expanding its distribution network in the country.
Mass offerings
P&G India has reported double-digit growth consistently in the last few years with its brands Whisper, Pantene, Oral B, Vicks, Gillette, Ariel and Tide.
But still, it has not been able to catch up with HUL due to its premium offerings.
Analysts feel P&G is more into the value game unlike HUL, which has products in the mass-end such as Wheel and Lifebuoy.
P&G's increased investments could be to enter the market with more mass offerings and also to raise its advertisement spends. The company also plans to revisit its ‘Project 2-3-4’, which is aimed at doubling the number of Indians who use its products, trebling per capita spending by Indians on its products and quadrupling net sales in India by 2015.
Monday, April 14, 2014
Oriental Cuisines to open 50 French Loaf, Le Chocolatier outlets in FY 2014-15
Chennai: Oriental Cuisines Private Ltd will open 50 outlets of its bakery brands French Loaf and Le Chocolatier by the end of this financial year, taking the total number of the outlets to about 200, a statement from the company said.
The company has started franchising its bakery brands and will expand its outlets in states where the company currently has a strong clientele and also in tier 2 cities.
"We are happy to announce OCPL's entry into the franchise model of our bakery formats - The French Loaf and Le Chocolatier. We see a rich potential in the market and expansion will help us further increase our market share. Of the 50 outlets, 10 will be company owned and the rest will be franchise run formats," said Narendra Malhotra, CEO, Oriental Cuisines.
The French Loaf is the largest bakery chain in the country. It offers premium products ranging from snacks, savouries, pastries, breads and quick snack meals at affordable prices.
Le Chocolatier, a standalone chocolate boutique, offers premium chocolates which are imported from Belgium to meet the international standards and customer expectations.
Apart from these, Oriental Cuisines owns Benjarong, Teppan, Ente Keralam, China Town, Z The Tapas Bar & Restaurant, Wang's Kitchen, Planet Yumm, Kebab House and Hotel Oriental Inn.
The company has started franchising its bakery brands and will expand its outlets in states where the company currently has a strong clientele and also in tier 2 cities.
"We are happy to announce OCPL's entry into the franchise model of our bakery formats - The French Loaf and Le Chocolatier. We see a rich potential in the market and expansion will help us further increase our market share. Of the 50 outlets, 10 will be company owned and the rest will be franchise run formats," said Narendra Malhotra, CEO, Oriental Cuisines.
The French Loaf is the largest bakery chain in the country. It offers premium products ranging from snacks, savouries, pastries, breads and quick snack meals at affordable prices.
Le Chocolatier, a standalone chocolate boutique, offers premium chocolates which are imported from Belgium to meet the international standards and customer expectations.
Apart from these, Oriental Cuisines owns Benjarong, Teppan, Ente Keralam, China Town, Z The Tapas Bar & Restaurant, Wang's Kitchen, Planet Yumm, Kebab House and Hotel Oriental Inn.
Ambuja Cement draws up Rs. 800-cr capex plan for ongoing projects
Mumbai: Ambuja Cement, part of the Holcim Group, plans to invest Rs. 802 crore this year in various ongoing projects. The company has proposed to fund the entire capex through internal accruals, said Ambuja Cement in its annual report. It had invested Rs. 725 crore last year.
The company had announced a significant cement capacity addition of 4.50 million tonnes (mt) last year. It proposed to set up an integrated greenfield cement plant of 1.5 mt a year with 2.17 mt a year clinker facility at Marwar Mundwa, in Rajasthan.
Eco-clearance
The project involves clinker grinding units of 1.5 mt a year each at Dadri in Uttar Pradesh and Osara in Madhya Pradesh. These projects involve a cumulative investment of about Rs. 3,500 crore. Environmental clearances for the project were obtained but the Ministry of Environment and Forests had kept approval for Marwar Mundwa project in abeyance, said the company.
“We are in the process of tying up water sources required for construction and operations. Full-fledged construction work is expected to commence in the later part of 2014,” it added.
Last year, the company had taken up 13 new projects at different locations worth Rs. 272 crore to optimise and enhance efficiency.
These projects have a quick payback of two-and-a-half years to four years. Most of these projects are likely to be completed this year.
A new brownfield expansion project to set up a roller press at Rs. 70 crore at the Rabriyawas unit in Rajasthan, will add 0.80 million tonnes grinding capacity in the first half of 2014, it said. Ambuja Cement is also setting up a Waste Heat Recovery plant at Rabriyawas with an investment of Rs. 75 crore to optimise power costs and meet renewable power obligation.
Railway project
In order to strengthen logistics capability, the company has taken up a new railway siding project at its Rabriyawas unit in Rajasthan.
The total project cost is estimated at Rs. 250 crore.
“So far 40 per cent work of the railway project is over and is expected to be completed within the second quarter of 2016,” it said.
The company expects demand to gradually revive over 2014 and 2015 with a new government and recovery in construction activity.
“We expect the capacity utilisation rate of the industry to improve gradually from the current 73 per cent to 80 per cent by 2018 given the slowdown in pace of capacity addition and gradual recovery in demand,” it said.
The company had announced a significant cement capacity addition of 4.50 million tonnes (mt) last year. It proposed to set up an integrated greenfield cement plant of 1.5 mt a year with 2.17 mt a year clinker facility at Marwar Mundwa, in Rajasthan.
Eco-clearance
The project involves clinker grinding units of 1.5 mt a year each at Dadri in Uttar Pradesh and Osara in Madhya Pradesh. These projects involve a cumulative investment of about Rs. 3,500 crore. Environmental clearances for the project were obtained but the Ministry of Environment and Forests had kept approval for Marwar Mundwa project in abeyance, said the company.
“We are in the process of tying up water sources required for construction and operations. Full-fledged construction work is expected to commence in the later part of 2014,” it added.
Last year, the company had taken up 13 new projects at different locations worth Rs. 272 crore to optimise and enhance efficiency.
These projects have a quick payback of two-and-a-half years to four years. Most of these projects are likely to be completed this year.
A new brownfield expansion project to set up a roller press at Rs. 70 crore at the Rabriyawas unit in Rajasthan, will add 0.80 million tonnes grinding capacity in the first half of 2014, it said. Ambuja Cement is also setting up a Waste Heat Recovery plant at Rabriyawas with an investment of Rs. 75 crore to optimise power costs and meet renewable power obligation.
Railway project
In order to strengthen logistics capability, the company has taken up a new railway siding project at its Rabriyawas unit in Rajasthan.
The total project cost is estimated at Rs. 250 crore.
“So far 40 per cent work of the railway project is over and is expected to be completed within the second quarter of 2016,” it said.
The company expects demand to gradually revive over 2014 and 2015 with a new government and recovery in construction activity.
“We expect the capacity utilisation rate of the industry to improve gradually from the current 73 per cent to 80 per cent by 2018 given the slowdown in pace of capacity addition and gradual recovery in demand,” it said.
Sun Pharma makes open offer for Zenotech stake
Mumbai: Sun Pharma has evinced its interest in buying Hyderabad-based biotech company Zenotech Laboratories, through an open offer to buy 28.1 per cent worth Rs 18.41 crore ($3 million). The former recently bought out Ranbaxy in a $4-billion deal.
Currently, Ranbaxy owns 46.84 per cent stake in Zenotech, while its parent Japan's Daiichi Sankyo holds 20 per cent.
A mandatory open offer for Zenotech has been triggered following the Sun-Ranbaxy deal. If it acquires the 28.1 per cent stake, Sun would own around 74.9 per cent of Zenotech.
Zenotech's former promoters, led by Jayaram Chigurupati, own 24.9 per cent of the company. On Friday, Zenotech shares were up 4.9 per cent at Rs 22.20 on the BSE.
Up to 9.6 million shares of face value of Rs 10 each of Zenotech, constituting 28.1 per cent (at Rs 19 an offer share aggregating to Rs 18.4 crore), can be bought by Sun, according to the latter.
Currently, Ranbaxy owns 46.84 per cent stake in Zenotech, while its parent Japan's Daiichi Sankyo holds 20 per cent.
A mandatory open offer for Zenotech has been triggered following the Sun-Ranbaxy deal. If it acquires the 28.1 per cent stake, Sun would own around 74.9 per cent of Zenotech.
Zenotech's former promoters, led by Jayaram Chigurupati, own 24.9 per cent of the company. On Friday, Zenotech shares were up 4.9 per cent at Rs 22.20 on the BSE.
Up to 9.6 million shares of face value of Rs 10 each of Zenotech, constituting 28.1 per cent (at Rs 19 an offer share aggregating to Rs 18.4 crore), can be bought by Sun, according to the latter.
Nasscom to build start-up warehouses
Bangalore: Information technology (IT) industry body Nasscom is in talks with the governments of Maharashtra and Tamil Nadu to set up ‘start-up warehouses’ for incubation of start-ups.
According to sources close to the development, the centres expected to come up in Mumbai and Chennai are likely to be operational by December this year.
The industry body has received similar interest from Kerala, too, but talks with the state government are still at a nascent stage, the sources added.
Under its ‘10,000 Start-Ups’ initiative, Nasscom had launched its first ‘start-up warehouse’ in August 2013 in Bangalore in partnership with the Karnataka government. Under the partnership, the state government had provided 10,000 sq ft of space for housing the warehouse, while Nasscom has brought in programmes, expert teams and mentors for start-ups. The warehouse has a capacity of around 70 seats with round-the-clock power back-up, a leased Internet line and four meeting rooms.
The warehouse provides start-ups office space (up to five people per start-up) for up to six months, which can be renewed for another six months.
According to sources, the warehouses in Mumbai and Chennai would be bigger than the one in Bangalore. "The one at Chennai would be around 20,000 sq feet and the one in Mumbai is expected to be around 24,000 sq feet," a source close to the development said.
Nasscom has been running the '10,000 Start-ups' programme for one year in partnership with Google, Kotak, Microsoft and Verisign. The initiative is aimed at providing necessary support to technology start-ups and create 10,000 domain specific start-ups in the country.
The industry body had invited first round of entries for the programme in April 2013, and the short-listed companies were provided with funding ranging from Rs 25 lakh to Rs 2 crore through leading angel investors. Some of these start-ups were also offered incubation at some leading incubators in the country. The second phase of applications were called for in October last year.
"I am open to any state that wants to do it; we will help them," said Ravi Gururaj, chairman of Nasscom's Product Council, which is looking after the 10,000 Start-Up programme.
According to sources close to the development, the centres expected to come up in Mumbai and Chennai are likely to be operational by December this year.
The industry body has received similar interest from Kerala, too, but talks with the state government are still at a nascent stage, the sources added.
Under its ‘10,000 Start-Ups’ initiative, Nasscom had launched its first ‘start-up warehouse’ in August 2013 in Bangalore in partnership with the Karnataka government. Under the partnership, the state government had provided 10,000 sq ft of space for housing the warehouse, while Nasscom has brought in programmes, expert teams and mentors for start-ups. The warehouse has a capacity of around 70 seats with round-the-clock power back-up, a leased Internet line and four meeting rooms.
The warehouse provides start-ups office space (up to five people per start-up) for up to six months, which can be renewed for another six months.
According to sources, the warehouses in Mumbai and Chennai would be bigger than the one in Bangalore. "The one at Chennai would be around 20,000 sq feet and the one in Mumbai is expected to be around 24,000 sq feet," a source close to the development said.
Nasscom has been running the '10,000 Start-ups' programme for one year in partnership with Google, Kotak, Microsoft and Verisign. The initiative is aimed at providing necessary support to technology start-ups and create 10,000 domain specific start-ups in the country.
The industry body had invited first round of entries for the programme in April 2013, and the short-listed companies were provided with funding ranging from Rs 25 lakh to Rs 2 crore through leading angel investors. Some of these start-ups were also offered incubation at some leading incubators in the country. The second phase of applications were called for in October last year.
"I am open to any state that wants to do it; we will help them," said Ravi Gururaj, chairman of Nasscom's Product Council, which is looking after the 10,000 Start-Up programme.
Philippines keen on tie-ups in rubber sector
Kochi: Rubber is poised to emerge as a growth driver for economic relations between India and the Philippines, which have remained muted over the years.
A 35-member delegation from Philippines including government officials, rubber and products manufacturers visited India and held wide ranging talks with Rubber Board, Rubber Research Institute of India and All India Rubber Industries Association (AIRIA).
According to Niraj Thakkar, President, AIRIA, the Philippines has identified India as a key partner for reinvigorating its rubber sector as India has strengths across the entire rubber spectrum including rubber farming, processing and manufacturing which are unmatched by any other country. Besides discussions with the Rubber Board on developing high-yielding clones of rubber trees, the delegation visited rubber manufacturing units and machinery manufacturers.
In the comity of rubber producing nations, he said the Philippines has so far remained a fringe player. In the nine-member Association of Natural Rubber Producing Countries, Philippines was eighth in rubber production last year with a production of 1,16,400 tonnes. The Philippines has now sharpened its focus on expanding rubber production. The area under rubber has gone up from 1,78,600 hectares in 2012 to an estimated 2,11,600 hectares now.
The visit to India focused on increasing competitiveness in production, processing and manufacturing of rubber so as to increase domestic and export sales, attract investments in the rubber sector and create jobs, he said. Yokohama Tire Philippines is a major consumer of rubber but sources only 5 per cent of its rubber requirement from domestic sources. Like many other South-East Asian rubber producers, the Philippines wishes to move up the value chain by strengthening domestic rubber manufacturing besides improving quality of rubber produced, he said.
A 35-member delegation from Philippines including government officials, rubber and products manufacturers visited India and held wide ranging talks with Rubber Board, Rubber Research Institute of India and All India Rubber Industries Association (AIRIA).
According to Niraj Thakkar, President, AIRIA, the Philippines has identified India as a key partner for reinvigorating its rubber sector as India has strengths across the entire rubber spectrum including rubber farming, processing and manufacturing which are unmatched by any other country. Besides discussions with the Rubber Board on developing high-yielding clones of rubber trees, the delegation visited rubber manufacturing units and machinery manufacturers.
In the comity of rubber producing nations, he said the Philippines has so far remained a fringe player. In the nine-member Association of Natural Rubber Producing Countries, Philippines was eighth in rubber production last year with a production of 1,16,400 tonnes. The Philippines has now sharpened its focus on expanding rubber production. The area under rubber has gone up from 1,78,600 hectares in 2012 to an estimated 2,11,600 hectares now.
The visit to India focused on increasing competitiveness in production, processing and manufacturing of rubber so as to increase domestic and export sales, attract investments in the rubber sector and create jobs, he said. Yokohama Tire Philippines is a major consumer of rubber but sources only 5 per cent of its rubber requirement from domestic sources. Like many other South-East Asian rubber producers, the Philippines wishes to move up the value chain by strengthening domestic rubber manufacturing besides improving quality of rubber produced, he said.
Saturday, April 12, 2014
Suzlon sells 240 MW Big Sky Wind Farm in US to EverPower Wind Holdings
Mumbai: Suzlon Group, the world's fifth largest wind turbine manufacturer, on Wednesday announced the strategic sale of the 240 MW Big Sky Wind Farm in Illinois to EverPower Wind Holdings, Inc, pocketing about $100 million and leading its shares up 7% to close at Rs 15 in a firm Mumbai market on Wednesday.
Suzlon Group had recently acquired the Big Sky wind farm from Edison Mission Energy through its fully owned US-based subsidiary Suzlon Wind Energy Corp (SWECO) has signed a definitive agreement with EverPower to sell the project located in Illinois, about 95 miles west of Chicago, said a Suzlon statement. The deal was first reported by ToI on April 3.
"We are very pleased to welcome EverPower to the Suzlon family of customers. The SWECO OMS team looks forward to partnering with EverPower to maintain the high standards of availability and reliability at Big Sky that we have seen since operations started at Big Sky four years ago," said Duncan Koerbel, CEO of Suzlon Wind Energy Corporation and CTO of the Suzlon Group.
This acquisition of Big Sky by EverPower makes it the nation's 18th largest wind generator, with a combined capacity of 752MW in the US in winder power generation.
"We are pleased to add this project to our portfolio. It fits into both our overall growth strategy and our strategy of building our portfolio in liquid markets like PJM," said James Spencer, president and CEO of EverPower.
Completed in early 2011, the Big Sky Project utilizes 114 Suzlon 2.1MW S88 turbines to generate enough electricity per annum for nearly 50,000 homes while also offsetting over 225,000 tons of CO2 emissions.
"This sale of Big Sky Wind Farm to a sound long term investor like EverPower is an important part of our dis-investment strategy to hive off non-core assets, and the net proceeds of the sale will be used to fuel our business growth," said Kirti Vagadia, group head, finance at Suzlon. Besides, Suzlon has lined up a dozen non-core assets for sale and aims to raise Rs 1500 crore to pare its debts.
Suzlon Group had recently acquired the Big Sky wind farm from Edison Mission Energy through its fully owned US-based subsidiary Suzlon Wind Energy Corp (SWECO) has signed a definitive agreement with EverPower to sell the project located in Illinois, about 95 miles west of Chicago, said a Suzlon statement. The deal was first reported by ToI on April 3.
"We are very pleased to welcome EverPower to the Suzlon family of customers. The SWECO OMS team looks forward to partnering with EverPower to maintain the high standards of availability and reliability at Big Sky that we have seen since operations started at Big Sky four years ago," said Duncan Koerbel, CEO of Suzlon Wind Energy Corporation and CTO of the Suzlon Group.
This acquisition of Big Sky by EverPower makes it the nation's 18th largest wind generator, with a combined capacity of 752MW in the US in winder power generation.
"We are pleased to add this project to our portfolio. It fits into both our overall growth strategy and our strategy of building our portfolio in liquid markets like PJM," said James Spencer, president and CEO of EverPower.
Completed in early 2011, the Big Sky Project utilizes 114 Suzlon 2.1MW S88 turbines to generate enough electricity per annum for nearly 50,000 homes while also offsetting over 225,000 tons of CO2 emissions.
"This sale of Big Sky Wind Farm to a sound long term investor like EverPower is an important part of our dis-investment strategy to hive off non-core assets, and the net proceeds of the sale will be used to fuel our business growth," said Kirti Vagadia, group head, finance at Suzlon. Besides, Suzlon has lined up a dozen non-core assets for sale and aims to raise Rs 1500 crore to pare its debts.
Suven Life secures patents in Canada, Hong Kong
Hyderabad: Suven Life Sciences Ltd has obtained two patents, one each from Hong Kong and Canada, for its New Chemical Entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases.
The granted claims of the patents include the class of selective 5-HT compounds discovered by the Hyderabad-based company that were being developed as therapeutic agents.
They were useful in the treatment of cognitive impairment associated with neurodegenerative disorders such as Alzheimer’s disease, attention deficient hyperactivity disorder (ADHD), Huntington’s disease, Parkinsons and schizophrenia.
The granted claims of the patents include the class of selective 5-HT compounds discovered by the Hyderabad-based company that were being developed as therapeutic agents.
They were useful in the treatment of cognitive impairment associated with neurodegenerative disorders such as Alzheimer’s disease, attention deficient hyperactivity disorder (ADHD), Huntington’s disease, Parkinsons and schizophrenia.
Record rise in seafood export, 1-mt mark crossed
Kochi: The provisional estimates of the Marine Products Export Development Authority (MPEDA) shows India’s seafood export has crossed one million tonne mark for the first time, earning over $4.5 billion in 2013-14.
According to the provisional estimates, the increase of $1 billion in revenue in 12 months is a great achievement. Export revenue grew 30 per cent in dollar terms. During 2011-12 and 2012-13, earnings were $3.5 billion. In rupee terms, the estimates indicated an earning of Rs 20,000 crore.
In 2012-13, India exported 928,215 tonnes valued at Rs 18,856 crore. In 2011-12, the country had exported 862,021 tonnes valued at Rs 16,597 crore. MPEDA now targets an earning of $ 10 billion by 2020. This performance was due to two major factors: Serious fall in the production and export of shrimp from Southeast Asian countries and the lowering of countervailing duty on Indian shrimp exports in the US.
Production in Southeast Asian countries had been affected badly due to the spread of a disease called Early Mortality Syndrome. Supply from Thailand, the world’s second largest shrimp producer, dropped around 50 per cent from the normal 500,000 tonnes a year. Other leading producers Vietnam and Malaysia had also been hit. India could cash on this global situation and enhanced its exports to these countries too.
Processing plants in East Asian countries had to depend on imports from India in order to meet their commitments with European and US importers. Countries such as Vietnam, China and Thailand imported more shipments from India last year, mainly for re-export.
Rise in local demand in Korea also caused warming up in global prices, said Anwar Hashim, a leading exporter and former president of Seafood Exporters Association of India. However, USA was the largest market for Indian shrimps, as the country imported 51.24 per cent of the total Indian shrimp exports. This was followed by South East Asian countries (16 per cent), EU (15.82 per cent) and Japan (4.94 per cent).
Shortage of shrimp due to spread of EMS also caused rise in prices and, this, in turn, helped the steep rise in dollar earnings, he added. Increase in the production of Vannamei shrimp, rise in the productivity of Black Tiger variety and increase in export of chilled items also helped achieve higher exports, MPEDA said.
According to the provisional estimates, the increase of $1 billion in revenue in 12 months is a great achievement. Export revenue grew 30 per cent in dollar terms. During 2011-12 and 2012-13, earnings were $3.5 billion. In rupee terms, the estimates indicated an earning of Rs 20,000 crore.
In 2012-13, India exported 928,215 tonnes valued at Rs 18,856 crore. In 2011-12, the country had exported 862,021 tonnes valued at Rs 16,597 crore. MPEDA now targets an earning of $ 10 billion by 2020. This performance was due to two major factors: Serious fall in the production and export of shrimp from Southeast Asian countries and the lowering of countervailing duty on Indian shrimp exports in the US.
Production in Southeast Asian countries had been affected badly due to the spread of a disease called Early Mortality Syndrome. Supply from Thailand, the world’s second largest shrimp producer, dropped around 50 per cent from the normal 500,000 tonnes a year. Other leading producers Vietnam and Malaysia had also been hit. India could cash on this global situation and enhanced its exports to these countries too.
Processing plants in East Asian countries had to depend on imports from India in order to meet their commitments with European and US importers. Countries such as Vietnam, China and Thailand imported more shipments from India last year, mainly for re-export.
Rise in local demand in Korea also caused warming up in global prices, said Anwar Hashim, a leading exporter and former president of Seafood Exporters Association of India. However, USA was the largest market for Indian shrimps, as the country imported 51.24 per cent of the total Indian shrimp exports. This was followed by South East Asian countries (16 per cent), EU (15.82 per cent) and Japan (4.94 per cent).
Shortage of shrimp due to spread of EMS also caused rise in prices and, this, in turn, helped the steep rise in dollar earnings, he added. Increase in the production of Vannamei shrimp, rise in the productivity of Black Tiger variety and increase in export of chilled items also helped achieve higher exports, MPEDA said.
US remains top overseas education destination
Mumbai: Rajiv Chaturvedi, a 22-year-old engineer, had put aside his plan to visit the US for a Master of Science (MS) programme last year, when the rupee depreciated and almost touched Rs 68.85 versus the dollar.
As a result, the course-fee of the technology institute of his choice was up by almost Rs 3 lakh. This time, when the rupee has appreciated to nearly Rs 59.50 versus the dollar, Chaturvedi's plan to study in the US is back on track.
The US is the most preferred international study destination. Education consultants say Australia, Canada and New Zealand have become the next most popular destinations, on the back of easier visa norms and more scholarships for Indian students. However, the UK has seen a drop in students.
Vinayak Kamat, Director of Mumbai-based GeeBee Education that assists students in pursuing overseas education, explains there has been a drop in the number going to the UK after removal of post study work permit three years ago. He added that Canada has grown manifold in the past four years, while the US was still the first choice.
Data from the Institute of International Education, Educational Exchange Data from Open Doors 2013 showed that in the 2012-13 academic year, 96,754 students from India were studying in the US (down 3.5 per cent from the previous year). India is the second leading place of origin for students coming to the US after China.
Rohan Ganeriwala, co- founder of overseas education consultants, Collegify, says that overall Europe as a student destination has seen a drop due to lower job opportunities for students after their course completion. "The US economy has revived, bringing back student interest. Canada has also gained due to a thriving job market for students in the region," he added.
New rules that aim to strengthen Canada's status as a study destination of choice for prospective international students will take effect on June 1, 2014. The new regulations will improve services to genuine students, while protecting Canada's international reputation for high-quality education and reducing the potential for fraud and misuse of the programme.
According to the new rules, registered Indians who are also foreign nationals may study in Canada without a study permit as they have the right of entry into Canada. Further, study permits will automatically authorise the holder to work off-campus for up to 20 hours a week during the academic session and full-time during scheduled breaks without the need to apply for a separate work permit.
Canadian institutes have also begun extensive campaigns in countries like India for students to visit their country. For instance, some educational institutes have tied-up with schools in India, wherein these school students wanting to pursue higher education abroad are taken to Canada for 3-7 days and provided an overview of the educational and employment scenario in that country.
Naveen Chopra, chairman and promoter, The Chopras, says that Australia has picked up as a destination, due to the fact that the visa norms allow students who study in the country for two years to work there for two years. "Australia also offers the highest minimum wages - as high as $80 per hour - which is an attractive proposition," he added.
The new guidelines of Australia under the post-study work stream offers extended options for working in Australia to eligible graduates of a higher education degree. Under this stream, successful applicants are granted a visa of two, three or four years duration, depending on the highest educational qualification they have obtained.
Though Australia has emerged as a preferred location for students, earlier there were some concerns about racial discrimination and attacks against Indians. "While students and parents double-check on the safety aspects, Australian government has taken steps to curb such instances and, hence, enrollments are up," said a senior official from an education consultancy.
Apart from the visa relaxations, scholarships to students have also increased from emerging student destinations like New Zealand. Ziena Jalil, Regional Director for South Asia, Education New Zealand said student visas issued to Indian nationals seeking to study in New Zealand increased more than 10 per cent last year, making India one of the fastest growing student markets for New Zealand.
"This year too, there is an increase in the number of applications from students. Our student numbers from India have continued to grow. We have also increased our activities in India to attract more students," she added.
Jalil explained that international students who have achieved a New Zealand qualification may be allowed to gain experience in work related to their studies. Depending on what international students study, they may be able to work in New Zealand, and possibly even gain residence.
First, international students need to apply for a visa and get it approved. The study to work pathway has two steps - post-study work visa (open) and post-study work visa (employer assisted).
Post-study work visa (open) gives international students up to 12 months to get a job in a field related to their studies. While looking for a job in their field, students are allowed to work in any job to support themselves.
Further, post-study work visa (employer assisted) lets international students stay in New Zealand to gain work experience for a further two years (or three years if work experience is required as part of a professional registration). This visa relates to a specific job with a specific employer.
Meanwhile, UK has seen a drop in the number of students from India, on the back of tighter visa norms for students. This is especially for those who want to pursue a job in the UK after completion of course.
According to the April 2014 report 'Global demand for English Higher Education' by Higher Education Funding Council for England, there are declining numbers of entrants from South Asia - particularly India and Pakistan - at undergraduate and postgraduate levels. The data also suggest a continued decline in student visas issued to applicants from countries mainly in South Asia - specifically Pakistan, India, Sri Lanka and Iran.
"While English higher education remains popular worldwide, there has been a decline in the growth of international recruitment since 2010. This is the first significant slowdown in the past 29 years. Data show that while entrants from India and Pakistan have halved in England since 2010, their numbers are growing elsewhere," the report said.
As a result, the course-fee of the technology institute of his choice was up by almost Rs 3 lakh. This time, when the rupee has appreciated to nearly Rs 59.50 versus the dollar, Chaturvedi's plan to study in the US is back on track.
The US is the most preferred international study destination. Education consultants say Australia, Canada and New Zealand have become the next most popular destinations, on the back of easier visa norms and more scholarships for Indian students. However, the UK has seen a drop in students.
Vinayak Kamat, Director of Mumbai-based GeeBee Education that assists students in pursuing overseas education, explains there has been a drop in the number going to the UK after removal of post study work permit three years ago. He added that Canada has grown manifold in the past four years, while the US was still the first choice.
Data from the Institute of International Education, Educational Exchange Data from Open Doors 2013 showed that in the 2012-13 academic year, 96,754 students from India were studying in the US (down 3.5 per cent from the previous year). India is the second leading place of origin for students coming to the US after China.
Rohan Ganeriwala, co- founder of overseas education consultants, Collegify, says that overall Europe as a student destination has seen a drop due to lower job opportunities for students after their course completion. "The US economy has revived, bringing back student interest. Canada has also gained due to a thriving job market for students in the region," he added.
New rules that aim to strengthen Canada's status as a study destination of choice for prospective international students will take effect on June 1, 2014. The new regulations will improve services to genuine students, while protecting Canada's international reputation for high-quality education and reducing the potential for fraud and misuse of the programme.
According to the new rules, registered Indians who are also foreign nationals may study in Canada without a study permit as they have the right of entry into Canada. Further, study permits will automatically authorise the holder to work off-campus for up to 20 hours a week during the academic session and full-time during scheduled breaks without the need to apply for a separate work permit.
Canadian institutes have also begun extensive campaigns in countries like India for students to visit their country. For instance, some educational institutes have tied-up with schools in India, wherein these school students wanting to pursue higher education abroad are taken to Canada for 3-7 days and provided an overview of the educational and employment scenario in that country.
Naveen Chopra, chairman and promoter, The Chopras, says that Australia has picked up as a destination, due to the fact that the visa norms allow students who study in the country for two years to work there for two years. "Australia also offers the highest minimum wages - as high as $80 per hour - which is an attractive proposition," he added.
The new guidelines of Australia under the post-study work stream offers extended options for working in Australia to eligible graduates of a higher education degree. Under this stream, successful applicants are granted a visa of two, three or four years duration, depending on the highest educational qualification they have obtained.
Though Australia has emerged as a preferred location for students, earlier there were some concerns about racial discrimination and attacks against Indians. "While students and parents double-check on the safety aspects, Australian government has taken steps to curb such instances and, hence, enrollments are up," said a senior official from an education consultancy.
Apart from the visa relaxations, scholarships to students have also increased from emerging student destinations like New Zealand. Ziena Jalil, Regional Director for South Asia, Education New Zealand said student visas issued to Indian nationals seeking to study in New Zealand increased more than 10 per cent last year, making India one of the fastest growing student markets for New Zealand.
"This year too, there is an increase in the number of applications from students. Our student numbers from India have continued to grow. We have also increased our activities in India to attract more students," she added.
Jalil explained that international students who have achieved a New Zealand qualification may be allowed to gain experience in work related to their studies. Depending on what international students study, they may be able to work in New Zealand, and possibly even gain residence.
First, international students need to apply for a visa and get it approved. The study to work pathway has two steps - post-study work visa (open) and post-study work visa (employer assisted).
Post-study work visa (open) gives international students up to 12 months to get a job in a field related to their studies. While looking for a job in their field, students are allowed to work in any job to support themselves.
Further, post-study work visa (employer assisted) lets international students stay in New Zealand to gain work experience for a further two years (or three years if work experience is required as part of a professional registration). This visa relates to a specific job with a specific employer.
Meanwhile, UK has seen a drop in the number of students from India, on the back of tighter visa norms for students. This is especially for those who want to pursue a job in the UK after completion of course.
According to the April 2014 report 'Global demand for English Higher Education' by Higher Education Funding Council for England, there are declining numbers of entrants from South Asia - particularly India and Pakistan - at undergraduate and postgraduate levels. The data also suggest a continued decline in student visas issued to applicants from countries mainly in South Asia - specifically Pakistan, India, Sri Lanka and Iran.
"While English higher education remains popular worldwide, there has been a decline in the growth of international recruitment since 2010. This is the first significant slowdown in the past 29 years. Data show that while entrants from India and Pakistan have halved in England since 2010, their numbers are growing elsewhere," the report said.
India inks pact with Russia to share diamond trade data
Mumbai: India has signed a memorandum of understanding with Russia to source data on diamond trade between two countries. India is the largest diamond processor, while Russia is the world’s largest rough diamond producer.
The agreement between both countries was signed in Russia by the Gem and Jewellery Export Promotion Council and Russian Government-owned diamond mining firm Alrosa which accounts for close to 25 per cent of the world output. India accounts for about 60 per cent of global polished diamond output in value terms. India imported 163.11 million carats of rough diamonds worth $16.34 billion and exported 36.46 million carats of polished diamonds worth $20.23 billion in 2013. Indian exported gems and jewellery worth $36.04 billion last year. Russia produced 34.9 million carats of rough diamonds in 2012.
The Reserve Bank of India recently liberalised financing for rough diamond imports by allowing banks to extend advance remittance to Indian importers in favour of any global miners. Earlier, this facility was restricted to five global miners of roughs.
Vipul Shah, Chairman GJEPC, said India has sought long-term contracts between Alrosa and the Indian cutting and polishing industry. With this association, both trade bodies look forward to cooperation and exchange information in the framework of implementation of Kimberley Process Certification Scheme which prevents diamond industry finance to war or human rights abuses.
An Alrosa study team visiting India recently said most of the rough diamonds produced in Russia are cut and polished in India.
The agreement between both countries was signed in Russia by the Gem and Jewellery Export Promotion Council and Russian Government-owned diamond mining firm Alrosa which accounts for close to 25 per cent of the world output. India accounts for about 60 per cent of global polished diamond output in value terms. India imported 163.11 million carats of rough diamonds worth $16.34 billion and exported 36.46 million carats of polished diamonds worth $20.23 billion in 2013. Indian exported gems and jewellery worth $36.04 billion last year. Russia produced 34.9 million carats of rough diamonds in 2012.
The Reserve Bank of India recently liberalised financing for rough diamond imports by allowing banks to extend advance remittance to Indian importers in favour of any global miners. Earlier, this facility was restricted to five global miners of roughs.
Vipul Shah, Chairman GJEPC, said India has sought long-term contracts between Alrosa and the Indian cutting and polishing industry. With this association, both trade bodies look forward to cooperation and exchange information in the framework of implementation of Kimberley Process Certification Scheme which prevents diamond industry finance to war or human rights abuses.
An Alrosa study team visiting India recently said most of the rough diamonds produced in Russia are cut and polished in India.
Wednesday, April 9, 2014
IIFL Wealth Management acquires India Alternatives
Coimbatore: IIFL Wealth Management Ltd (IIFL Wealth) has announced the acquisition of a majority stake in India Alternatives Investment Advisors, the investment manager to India Alternatives Private Equity Fund (India Alt Fund).
IIFL Group has also committed a significant contribution to India Alt Fund. India Alt Fund, a private equity (PE) fund registered with market regulator SEBI, with an initial commitment of Rs 230 crore, invests primarily in mid-growth stage companies.
"This acquisition will enable IIFL Group to widen its presence in the PE industry and provide an added offering under the asset management platform," said Nirmal Jain, chairman of IIFL Group.
"IIFL's fund raising capabilities and relationships with marquee families will help India Alt accelerate its growth path," said Karan Bhagat, MD & CEO of IIFL Wealth. The fund, a 100% institutional fund, plans to accelerate its pace of investment in mid-growth stage companies across sectors particularly in consumer & consumables, healthcare and pharmaceuticals.
Advisors of the India Alt Fund consist of eminent professionals such as Ranjana Kumar (ex-CMD of Indian Bank and NABARD and ex-vigilance commissioner, CVC), Kiran Nadkarni (managed four funds and started ICICI Ventures in India) and Anjani Jain (senior associate dean, Yale School of Management and former vice dean, Wharton).
"Association with IIFL Group is synergistic and will strengthen the India Alt platform, especially in fund raising, deal sourcing and exit management capabilities," said Shivani Bhasin Sachdeva, founder, MD and CEO, India Alt Fund.
IIFL Wealth Management, the private wealth management arm of IIFL Group, advises high net-worth individuals (HNIs) and ultra HNIs and manages assets to the tune of over Rs 55,000 crore.
IIFL Group has also committed a significant contribution to India Alt Fund. India Alt Fund, a private equity (PE) fund registered with market regulator SEBI, with an initial commitment of Rs 230 crore, invests primarily in mid-growth stage companies.
"This acquisition will enable IIFL Group to widen its presence in the PE industry and provide an added offering under the asset management platform," said Nirmal Jain, chairman of IIFL Group.
"IIFL's fund raising capabilities and relationships with marquee families will help India Alt accelerate its growth path," said Karan Bhagat, MD & CEO of IIFL Wealth. The fund, a 100% institutional fund, plans to accelerate its pace of investment in mid-growth stage companies across sectors particularly in consumer & consumables, healthcare and pharmaceuticals.
Advisors of the India Alt Fund consist of eminent professionals such as Ranjana Kumar (ex-CMD of Indian Bank and NABARD and ex-vigilance commissioner, CVC), Kiran Nadkarni (managed four funds and started ICICI Ventures in India) and Anjani Jain (senior associate dean, Yale School of Management and former vice dean, Wharton).
"Association with IIFL Group is synergistic and will strengthen the India Alt platform, especially in fund raising, deal sourcing and exit management capabilities," said Shivani Bhasin Sachdeva, founder, MD and CEO, India Alt Fund.
IIFL Wealth Management, the private wealth management arm of IIFL Group, advises high net-worth individuals (HNIs) and ultra HNIs and manages assets to the tune of over Rs 55,000 crore.
Reliance Jio, RCom eye more infra pacts
Mumbai: Mukesh Ambani’s telecom venture Reliance Jio Infocomm is in talks with the Anil Ambani-led Reliance Communications (RCom) to share the latter’s comprehensive retail network across the country.
While announcing its third pact on Monday in which RCom will share its intra-city optic fibre backbone with Jio, a wholly owned subsidiary of Reliance Industries (RIL), the company said it is looking at many other areas of partnership. This deal could earn RCom as much as Rs 5,000 crore spread over the entire life of the cable, which could be around 15 years. According to sources, the talks are centred around Reliance Jio sharing RCom’s retail network so that Jio can use RCom’s consumer touch points to market its products as well as collect bills.
"There are so many areas which could be explored. Reliance Industries does not have a huge consumer-reach like Reliance Communications or other group companies like Reliance Infrastructure," said an official from Reliance Communications. Reliance Infrastructure distributes electricity in Delhi and Mumbai. RCom has 3,000 stores across the country and is also present across 600,000 multi-brand outlets.
RCom, which also has a data centre facility at its Navi Mumbai campus, which it can leverage for Reliance Jio. "They (Jio) will need someone to manage their data centre and also there are more areas like customer care," said the company official.
Analysts believe both the companies can look at their collective approach to get and clinch better deals. “They can jointly bid for future infrastructure procurement or jointly bid for handsets to get an attractive price,” said Mahantesh Marilinga, senior telecom analyst at Finquest.
RCom is already eyeing device play to market its third generation data services with their Zero Bill plan. Apart from the latest Apple iPhone 5 series, the operator is eyeing a variety of devices to make custom-made bill plans.
The three deals signed by Jio with RCom until now are related to infrastructure where the former will share the latter’s cable network within cities.
"Reliance Jio Infocomm will utilise RCom’s nationwide intra-city fibre network for accelerated roll-out of its state-of-the-art 4G services across the country. The agreement is based on arm’s length pricing at prevailing market prices. RCOM’s intra-city optic fiber network extends to nearly 500,000 fibre pair kilometres, across the top more than 300 cities and towns in India," said Jio, in a press release. Jio is looking to offer services such as high-definition TV on the Internet as well as cloud-based healthcare services and storage services, among others.
RIL signed pacts on inter-city and intra-city optic fibre sharing, as well as telecom towers of Reliance Communications. Reliance Jio is still gearing up to launch its 4G-based high-speed data services, which is expected this year. However, Jio has time till 2015 to launch its services, according to the licence conditions of the Wimax spectrum, which was won in 2010.
While announcing its third pact on Monday in which RCom will share its intra-city optic fibre backbone with Jio, a wholly owned subsidiary of Reliance Industries (RIL), the company said it is looking at many other areas of partnership. This deal could earn RCom as much as Rs 5,000 crore spread over the entire life of the cable, which could be around 15 years. According to sources, the talks are centred around Reliance Jio sharing RCom’s retail network so that Jio can use RCom’s consumer touch points to market its products as well as collect bills.
"There are so many areas which could be explored. Reliance Industries does not have a huge consumer-reach like Reliance Communications or other group companies like Reliance Infrastructure," said an official from Reliance Communications. Reliance Infrastructure distributes electricity in Delhi and Mumbai. RCom has 3,000 stores across the country and is also present across 600,000 multi-brand outlets.
RCom, which also has a data centre facility at its Navi Mumbai campus, which it can leverage for Reliance Jio. "They (Jio) will need someone to manage their data centre and also there are more areas like customer care," said the company official.
Analysts believe both the companies can look at their collective approach to get and clinch better deals. “They can jointly bid for future infrastructure procurement or jointly bid for handsets to get an attractive price,” said Mahantesh Marilinga, senior telecom analyst at Finquest.
RCom is already eyeing device play to market its third generation data services with their Zero Bill plan. Apart from the latest Apple iPhone 5 series, the operator is eyeing a variety of devices to make custom-made bill plans.
The three deals signed by Jio with RCom until now are related to infrastructure where the former will share the latter’s cable network within cities.
"Reliance Jio Infocomm will utilise RCom’s nationwide intra-city fibre network for accelerated roll-out of its state-of-the-art 4G services across the country. The agreement is based on arm’s length pricing at prevailing market prices. RCOM’s intra-city optic fiber network extends to nearly 500,000 fibre pair kilometres, across the top more than 300 cities and towns in India," said Jio, in a press release. Jio is looking to offer services such as high-definition TV on the Internet as well as cloud-based healthcare services and storage services, among others.
RIL signed pacts on inter-city and intra-city optic fibre sharing, as well as telecom towers of Reliance Communications. Reliance Jio is still gearing up to launch its 4G-based high-speed data services, which is expected this year. However, Jio has time till 2015 to launch its services, according to the licence conditions of the Wimax spectrum, which was won in 2010.
Ashland opens pharma research facility in Hyderabad
Hyderabad: Ashland Speciality Ingredients, part of Ashland Inc, today opened a centre of excellence focussed on pharmaceuticals in Hyderabad.
The expertise offered here would be pre-dominantly in oral solid dosage form and a range of technical services for drug companies. It is in a leased facility in Alexandria City, near the ICICI Knowledge Park on the outskirts of the city.
With 20 scientists and about 25 Indian customers, the facility is the third for Ashland, said Luis Fernandez-Moreno, President, Ashland Speciality Ingredients. The other two are in Wilmington, Delaware, US and Shanghai in China.
Vast scope
Ashland has invested up to $10 million in India in its two centres of excellence — new pharma in Hyderabad and existing personal care in Mumbai. Investments are into lab equipment and research facilities and not infrastructure building, he told newspersons here.
India promises big opportunities for Ashland’s sectors of global business — coatings and energy, food and beverage, pharma, personal care, construction materials and oilfield service.
"We intend to invest more, expand in human resources and be open to acquisitions and setting up manufacturing units", Fernandez-Moreno said.
Ashland will offer speciality chemicals and industry-leading products, technologies and resources to provide technical solutions to the formulation majors.
With more than 300 employees in the country and a double-digit growth, the US headquartered company will also leverage Indian strengths to grow its global businesses. The company has invested $250 million in Asia since 2007.
"The strengths in oral solid dosage forms — tablets and capsules, delivery of drugs (a major challenge for the industry), enhancing bioavailability, research for materials in injectable drugs will be offered to drug customers.
Globally 70 per cent of our research is in collaboration with customers", said Thomas Durig, Senior Director, Pharma & Nutrition Specialities R&D.
The expertise offered here would be pre-dominantly in oral solid dosage form and a range of technical services for drug companies. It is in a leased facility in Alexandria City, near the ICICI Knowledge Park on the outskirts of the city.
With 20 scientists and about 25 Indian customers, the facility is the third for Ashland, said Luis Fernandez-Moreno, President, Ashland Speciality Ingredients. The other two are in Wilmington, Delaware, US and Shanghai in China.
Vast scope
Ashland has invested up to $10 million in India in its two centres of excellence — new pharma in Hyderabad and existing personal care in Mumbai. Investments are into lab equipment and research facilities and not infrastructure building, he told newspersons here.
India promises big opportunities for Ashland’s sectors of global business — coatings and energy, food and beverage, pharma, personal care, construction materials and oilfield service.
"We intend to invest more, expand in human resources and be open to acquisitions and setting up manufacturing units", Fernandez-Moreno said.
Ashland will offer speciality chemicals and industry-leading products, technologies and resources to provide technical solutions to the formulation majors.
With more than 300 employees in the country and a double-digit growth, the US headquartered company will also leverage Indian strengths to grow its global businesses. The company has invested $250 million in Asia since 2007.
"The strengths in oral solid dosage forms — tablets and capsules, delivery of drugs (a major challenge for the industry), enhancing bioavailability, research for materials in injectable drugs will be offered to drug customers.
Globally 70 per cent of our research is in collaboration with customers", said Thomas Durig, Senior Director, Pharma & Nutrition Specialities R&D.
Sun blazes with $4-billion Ranbaxy buy
Mumbai: Drugmaker Sun Pharma sent ripples across the pharmaceutical industry on Monday morning as it agreed to buy out the troubled Ranbaxy in a $4-billion (including $800-million debt), all-stock deal, in the process creating India’s largest drug company.
The landmark deal also makes the combined Sun-Ranbaxy entity the fifth largest generic drug-maker in the world, with estimated revenues of $4.2 billion for the year ended December 31, 2013.
The mega-deal underlines Sun Pharma Managing Director Dilip Shanghvi’s image as a “risk-taker”, since Ranbaxy is currently under intense scrutiny from the US Food and Drug Administration for compliance lapses at four of its manufacturing facilities in India.
Explaining the deal, Shanghvi said Ranbaxy was distinctive in nature, as it has several attractive brands, strengths and capabilities that can be leveraged.
On whether it would be Sun Pharma’s most challenging acquisition yet, he replied: “It is the largest for sure. I would not say challenging, but interesting …a validation of many of my principles.”
Ranbaxy is owned by Japanese major Daiichi-Sankyo and four of its India-based plants are at present barred from exporting to the US. Daiichi had bought Ranbaxy in 2008 from its erstwhile promoter-family, led by Malvinder and Shivinder Singh.
Arun Sahwney, Ranbaxy’s Managing Director and Chief Executive Officer, said that Sun Pharma was an ideal partner, as it had a good and proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets.
Sun also indicated, as part of the transaction that “Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the recent subpoena which Ranbaxy has received from the United States Attorney for the Toansa facility”. Top Sun Pharma and Ranbaxy executives present at the joint call in Mumbai to announce the transaction, however, did not give details on this.
The transaction is expected to close by the end of calendar year 2014, and Daiichi will get about nine per cent in Sun Pharma, making it the second largest shareholder after the promoter-family. Daiichi will also have the right to a representative on Sun’s board of directors.
Combined force
Shanghvi said the product portfolios of the two companies did not overlap, and as a result, Sun, for instance, could get access to Ranbaxy’s branded and over-the-counter products. The management expects revenues of $250 million and operating synergies three years after the deal is closed with Daiichi.
In the period till the transaction is done, an integration committee with representation from both companies will help iron out issues, Shanghvi said.
Under the agreements, Ranbaxy shareholders will receive a 0.8 Sun Pharma share for each share of Ranbaxy, a company note said.
This exchange ratio represents an implied value of Rs. 457 for each Ranbaxy share, a premium of 18 per cent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 per cent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as on April 4, 2014. Sun Pharma’s shares were up nearly 3 per cent to close at Rs. 587.25 on the BSE, while Ranbaxy’s were down a little over 3 per cent at Rs. 445.20.
The transaction will represent a tax-free exchange to Ranbaxy shareholders, who are expected to own around 14 per cent of the combined company.
The proposed transaction has been unanimously approved by the boards of directors at Sun Pharma, Ranbaxy, and Ranbaxy’s controlling shareholder, Daiichi Sankyo. It still requires shareholder and other regulatory approvals.
The landmark deal also makes the combined Sun-Ranbaxy entity the fifth largest generic drug-maker in the world, with estimated revenues of $4.2 billion for the year ended December 31, 2013.
The mega-deal underlines Sun Pharma Managing Director Dilip Shanghvi’s image as a “risk-taker”, since Ranbaxy is currently under intense scrutiny from the US Food and Drug Administration for compliance lapses at four of its manufacturing facilities in India.
Explaining the deal, Shanghvi said Ranbaxy was distinctive in nature, as it has several attractive brands, strengths and capabilities that can be leveraged.
On whether it would be Sun Pharma’s most challenging acquisition yet, he replied: “It is the largest for sure. I would not say challenging, but interesting …a validation of many of my principles.”
Ranbaxy is owned by Japanese major Daiichi-Sankyo and four of its India-based plants are at present barred from exporting to the US. Daiichi had bought Ranbaxy in 2008 from its erstwhile promoter-family, led by Malvinder and Shivinder Singh.
Arun Sahwney, Ranbaxy’s Managing Director and Chief Executive Officer, said that Sun Pharma was an ideal partner, as it had a good and proven track record of creating significant long-term shareholder value and successfully integrating acquisitions into its growing portfolio of assets.
Sun also indicated, as part of the transaction that “Daiichi Sankyo has agreed to indemnify Sun Pharma and Ranbaxy for, among other things, certain costs and expenses that may arise from the recent subpoena which Ranbaxy has received from the United States Attorney for the Toansa facility”. Top Sun Pharma and Ranbaxy executives present at the joint call in Mumbai to announce the transaction, however, did not give details on this.
The transaction is expected to close by the end of calendar year 2014, and Daiichi will get about nine per cent in Sun Pharma, making it the second largest shareholder after the promoter-family. Daiichi will also have the right to a representative on Sun’s board of directors.
Combined force
Shanghvi said the product portfolios of the two companies did not overlap, and as a result, Sun, for instance, could get access to Ranbaxy’s branded and over-the-counter products. The management expects revenues of $250 million and operating synergies three years after the deal is closed with Daiichi.
In the period till the transaction is done, an integration committee with representation from both companies will help iron out issues, Shanghvi said.
Under the agreements, Ranbaxy shareholders will receive a 0.8 Sun Pharma share for each share of Ranbaxy, a company note said.
This exchange ratio represents an implied value of Rs. 457 for each Ranbaxy share, a premium of 18 per cent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 per cent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as on April 4, 2014. Sun Pharma’s shares were up nearly 3 per cent to close at Rs. 587.25 on the BSE, while Ranbaxy’s were down a little over 3 per cent at Rs. 445.20.
The transaction will represent a tax-free exchange to Ranbaxy shareholders, who are expected to own around 14 per cent of the combined company.
The proposed transaction has been unanimously approved by the boards of directors at Sun Pharma, Ranbaxy, and Ranbaxy’s controlling shareholder, Daiichi Sankyo. It still requires shareholder and other regulatory approvals.
Canada invites Coal India to explore mining opportunities
Kolkata: Canadian High Commissioner in India Stewart Beck on Tuesday met N Kumar, Director (Technical) of Coal India Ltd, to seek investments for coal assets in British Columbia.
Coal is the mainstay of the British Columbian economy, on the west coast of Canada, representing over half of the total mineral production and the single largest export commodity of the province.
Though primarily a producer of metallurgical coal (used in firing blast furnaces for manufacturing steel), the Canadian province also has a fair share of thermal coal assets.
“It was a preliminary discussion. We have already floated a tender for exploring investment opportunities abroad,” Kumar told Business Line .
CIL currently holds interests in two assets in Mozambique acquired through a concession agreement between the African and Indian Governments.
As part of its plan to gainfully utilise the huge cash reserve, the national miner made an attempt in 2009-11 to acquire coal assets abroad. A couple of assets were also short-listed. However, the intricate Government policies on risk mitigation came in the way of striking the deals.
“I think it’s incumbent on the Government that the risk factor is reduced, otherwise this (acquisition plan) is not going to move,” the then coal secretary Alok Perti had said in a conference in Kolkata.
Earlier, at a meeting organised by the CII here, the Canadian High Commissioner said bilateral trade between the two countries is expected to grow 12 per cent in 2014. The Indo-Canadian trade stood at $5.5 billion in 2013.
Coal is the mainstay of the British Columbian economy, on the west coast of Canada, representing over half of the total mineral production and the single largest export commodity of the province.
Though primarily a producer of metallurgical coal (used in firing blast furnaces for manufacturing steel), the Canadian province also has a fair share of thermal coal assets.
“It was a preliminary discussion. We have already floated a tender for exploring investment opportunities abroad,” Kumar told Business Line .
CIL currently holds interests in two assets in Mozambique acquired through a concession agreement between the African and Indian Governments.
As part of its plan to gainfully utilise the huge cash reserve, the national miner made an attempt in 2009-11 to acquire coal assets abroad. A couple of assets were also short-listed. However, the intricate Government policies on risk mitigation came in the way of striking the deals.
“I think it’s incumbent on the Government that the risk factor is reduced, otherwise this (acquisition plan) is not going to move,” the then coal secretary Alok Perti had said in a conference in Kolkata.
Earlier, at a meeting organised by the CII here, the Canadian High Commissioner said bilateral trade between the two countries is expected to grow 12 per cent in 2014. The Indo-Canadian trade stood at $5.5 billion in 2013.
Thursday, April 3, 2014
Ritu Kumar label gets Rs. 100-cr Everstone funding
New Delhi: Private Equity firm Everstone said it will invest Rs. 100 crore for an undisclosed minority stake in the fashion label of designer Ritu Kumar. Ritu Kumar, a known face in India’s fashion fraternity, runs the eponymous premium fashion label.
Sameer Sain, Co-founder and Managing Partner of the Everstone Group, said, “Combining Ritu Kumar’s brand heritage, its strong management team and Everstone’s deep understanding and expertise within this space, Ritu Kumar will be poised for continued success and growth.”
Ritu Kumar, Founder-Director, said equally relevant would be its role in increasing visibility of the ‘Ritu Kumar Label line’. “In the last seven years, we have been developing structures within the company, including sub-brands and product lines, to create scale in the premium and luxury segments. Our requirements from a private equity partner were fairly stringent and in Everstone we believe that we have found excellent partners to grow with,” Amrish Kumar, Director and CEO, Ritu Kumar said.
The designer wear segment has seen much activity due to the opportunities it presents. Moet Hennessy Louis Vuitton or LVMH’s private equity arm, L Capital, owns 40 per cent of premium retailer Genesis Luxury.
Sameer Sain, Co-founder and Managing Partner of the Everstone Group, said, “Combining Ritu Kumar’s brand heritage, its strong management team and Everstone’s deep understanding and expertise within this space, Ritu Kumar will be poised for continued success and growth.”
Ritu Kumar, Founder-Director, said equally relevant would be its role in increasing visibility of the ‘Ritu Kumar Label line’. “In the last seven years, we have been developing structures within the company, including sub-brands and product lines, to create scale in the premium and luxury segments. Our requirements from a private equity partner were fairly stringent and in Everstone we believe that we have found excellent partners to grow with,” Amrish Kumar, Director and CEO, Ritu Kumar said.
The designer wear segment has seen much activity due to the opportunities it presents. Moet Hennessy Louis Vuitton or LVMH’s private equity arm, L Capital, owns 40 per cent of premium retailer Genesis Luxury.
800-MW unit-I of AP Genco’s Krishnapatnam plant goes on stream
Hyderabad: The first unit of 800 MW (2x800 MW) of Sri Damodaram Sanjeevaiah Thermal Power Station in Krishnapatnam has been synchronised with the Power Grid late on March 31. This project being executed by AP Genco is expected to partly ease up the demand supply situation in the State. It is expected to generate 38 million units per day once both the 800 MW units get commissioned.
This is a landmark project for AP Genco as it is the first 800 MW supercritical unit in the State and also first amongst public sector utilities. While the first unit has now been synchronised, second unit is expected to be commissioned by July. This project has been taken up under the mega power policy formulated by the Government. The project has been developed by a special purpose vehicle formed by AP Genco, AP Discoms and Government of Andhra Pradesh.
BHEL, L&T and TPL served as major contractors for AP Genco project and Navayuga Engineering Company executed the sea water related works. The power plant is located at Krishnapatnam, about 25 km Nellore on a 1,170 acre site. Of the coal required for the project, 5 million tonnes per annum (about 71.4 per cent) is from Mahanadi Coalfields Ltd and 2 million tonnes per annum (about 28.6 per cent) is imported coal.
The project is expected to generate 11920 million units per annum. The power project entered into a power purchase agreement in November 2010.
This is a landmark project for AP Genco as it is the first 800 MW supercritical unit in the State and also first amongst public sector utilities. While the first unit has now been synchronised, second unit is expected to be commissioned by July. This project has been taken up under the mega power policy formulated by the Government. The project has been developed by a special purpose vehicle formed by AP Genco, AP Discoms and Government of Andhra Pradesh.
BHEL, L&T and TPL served as major contractors for AP Genco project and Navayuga Engineering Company executed the sea water related works. The power plant is located at Krishnapatnam, about 25 km Nellore on a 1,170 acre site. Of the coal required for the project, 5 million tonnes per annum (about 71.4 per cent) is from Mahanadi Coalfields Ltd and 2 million tonnes per annum (about 28.6 per cent) is imported coal.
The project is expected to generate 11920 million units per annum. The power project entered into a power purchase agreement in November 2010.
Aurobindo Pharma acquires Actavis operations in 7 European countries
Hyderabad: Aurobindo Pharma Ltd has completed the acquisition of certain commercial operations in Western Europe from Actavis Plc. In January this year, the Hyderabad-based Aurobindo Pharma had signed an agreement with Actavis to acquire its personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights in seven European countries for €30 million.
Both companies had also inked a long-term commercial and supply arrangement.
“The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe with a top 10 position in several key markets,’’ Muralidharan, Senior Vice-President of European operations for Aurobindo, said here on Tuesday.
Smooth transition
Aurobindo would work to combine the strength of both enterprises in these markets and to identify and maximise all opportunities.
“We will continue to collaborate with Actavis to ensure business continuity and a smooth transition. In parallel, we will work closely with the acquired management teams to achieve a rapid and successful integration,’’ he added. Aurobindo’s scrip gained 4.67 per cent on BSE on Tuesday to end at Rs. 534.70
Both companies had also inked a long-term commercial and supply arrangement.
“The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe with a top 10 position in several key markets,’’ Muralidharan, Senior Vice-President of European operations for Aurobindo, said here on Tuesday.
Smooth transition
Aurobindo would work to combine the strength of both enterprises in these markets and to identify and maximise all opportunities.
“We will continue to collaborate with Actavis to ensure business continuity and a smooth transition. In parallel, we will work closely with the acquired management teams to achieve a rapid and successful integration,’’ he added. Aurobindo’s scrip gained 4.67 per cent on BSE on Tuesday to end at Rs. 534.70
PE investments double in Q1 of 2014
Chennai: Private equity (PE) firms invested $2.27 billion in the January-March quarter of 2014 compared to $1.18 billion in the same quarter last year, an increase of 93%. The number of deals in the quarter was slightly lower at 89 transactions compared to 103 last year, implying the value per transaction has more than doubled. There were five $100 million or more investments in this quarter against one last year.
On a quarterly basis, the numbers were largely flat as there were 86 deals in the previous quarter worth $2.22 billion, as per data provided by Venture Intelligence, a PE research firm..
Infrastructure dominated other sectors in terms of big-ticket investments with the two largest deals belonging to the sector. Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) along with Omani sovereign wealth fund State General Reserve Fund (SGRF) invested 2,000 crore in L&T IDPL, the infrastructure development arm of engineering major Larsen & Toubro. The second largest PE deal involved Canadian pension fund PSP Investments (along with IDFC PE) partnering Abu Dhabi's National Energy Company (Taqa) to buy out two hydel power plants operated by Jaiprakash Power Ventures in the state of Himachal Pradesh. PSP and IDFC will put up a total of 1,960 crore for their 39% and 10% stake respectively, while Taqa will own 51%.
"Brisk activity in infrastructure before elections is really a surprise since it is such a policy driven sector. Pure finance VCs and PEs are in wait and watch mode and this is where large, long term sovereign and pension funds have walked in," said Arun Natarajan, CEO of Venture Intelligence. "Overall, large investments are going through but the middle market is still the same. The situation with initial public offerings has also not changed."
However, Sameer Mehta, director at Atlas Advisory, said that it was a due to expectations of change in government. "A new government led by Modi is seen as more infrastructure-centric compared to Congress' perceived socially-centric stance. These expectations are pulling in investors," said Mehta.
IT accounted for $895 million worth of investments. The big tech deals include the $260 million buyout of the Aditya Birla Group's BPO unit Minacs by CX Partners and Capital Square Partners, the $143 million fifth round raised by e-commerce firm Snapdeal.com which was led by eBay along with existing VC investors and General Atlantic's $100 million investment in healthcare software firm Citius IT. Online classifieds firm Quikr also raised $90 million from eBay and existing PE/VC investors.
"Like last year, when CSS Corp and Hexaware were the major deals, IT has continued to see strong activity. I expect this to continue as it is outward looking with markets abroad. Rupee has also helped them," said Natarajan.
Healthcare witnessed reduced activity. There were only nine deals worth $70 million in the sector with a $20 million as the largest. Mehta of Atlas Advisory said that it was due to cyclical reasons and also because there aren't many prospective firms which can be picked up in the market. "Healthcare is still strong. If there is a good venture, it will get funded," he said.
On a quarterly basis, the numbers were largely flat as there were 86 deals in the previous quarter worth $2.22 billion, as per data provided by Venture Intelligence, a PE research firm..
Infrastructure dominated other sectors in terms of big-ticket investments with the two largest deals belonging to the sector. Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) along with Omani sovereign wealth fund State General Reserve Fund (SGRF) invested 2,000 crore in L&T IDPL, the infrastructure development arm of engineering major Larsen & Toubro. The second largest PE deal involved Canadian pension fund PSP Investments (along with IDFC PE) partnering Abu Dhabi's National Energy Company (Taqa) to buy out two hydel power plants operated by Jaiprakash Power Ventures in the state of Himachal Pradesh. PSP and IDFC will put up a total of 1,960 crore for their 39% and 10% stake respectively, while Taqa will own 51%.
"Brisk activity in infrastructure before elections is really a surprise since it is such a policy driven sector. Pure finance VCs and PEs are in wait and watch mode and this is where large, long term sovereign and pension funds have walked in," said Arun Natarajan, CEO of Venture Intelligence. "Overall, large investments are going through but the middle market is still the same. The situation with initial public offerings has also not changed."
However, Sameer Mehta, director at Atlas Advisory, said that it was a due to expectations of change in government. "A new government led by Modi is seen as more infrastructure-centric compared to Congress' perceived socially-centric stance. These expectations are pulling in investors," said Mehta.
IT accounted for $895 million worth of investments. The big tech deals include the $260 million buyout of the Aditya Birla Group's BPO unit Minacs by CX Partners and Capital Square Partners, the $143 million fifth round raised by e-commerce firm Snapdeal.com which was led by eBay along with existing VC investors and General Atlantic's $100 million investment in healthcare software firm Citius IT. Online classifieds firm Quikr also raised $90 million from eBay and existing PE/VC investors.
"Like last year, when CSS Corp and Hexaware were the major deals, IT has continued to see strong activity. I expect this to continue as it is outward looking with markets abroad. Rupee has also helped them," said Natarajan.
Healthcare witnessed reduced activity. There were only nine deals worth $70 million in the sector with a $20 million as the largest. Mehta of Atlas Advisory said that it was due to cyclical reasons and also because there aren't many prospective firms which can be picked up in the market. "Healthcare is still strong. If there is a good venture, it will get funded," he said.
RBI relaxes rough diamond import norms
Mumbai: In a further liberalising of the norms for rough diamond imports, the Reserve Bank of India (RBI) has lifted restrictions on a number of mines abroad, to which advance remittances can be extended for such import of roughs.
Banks may use their own discretion to extend advance remittance to Indian importers in favour of global miners. Based on recommendations from the Gems & Jewellery Export Promotion Council (GJEPC), RBI had in 2007 notified five global miners of roughs — including Diamond Trading Company, UK; Rio Tinto, UK and BHP Billiton, Australia — to which an importer was allowed to make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs. The number was later extended to nine, including Al Rosa and Gokharan from Russia and Endiama EP from Angola.
“Henceforth, we will not notify the names of overseas mining companies from whom an importer may import rough diamonds into India, by way of advance payments, without any limit or bank guarantee or standby letter of credit,” RBI stated on Monday. At present, banks extend remittances to foreign miners on behalf of importers before the dispatch of consignments.
“RBI’s move will help the industry, as we will be able to procure rough diamonds from anywhere. Our hands will be free now,” said Shreyas Doshi, chairman, Shrenuj & Co.
Banks are now permitted to decide on the foreign mining companies to which an importer can make advance payments, without any limit or bank guarantee or standby letter of credit, the circular clarified. RBI cautioned that mining company in question should have recommendations from GJEPC and importers, be a recognised processor of roughs and have a good record.
The advance payment should be transferred directly to the account of the company concerned, not through numbered accounts or otherwise. The regulator has ,however, restricted remittances to any mining company without certification from the Kimberly Process Certification Scheme, established in 2003 by the United Nations to prevent diamond sales from financing war or human rights abuses.
For public sector undertakings, banks may permit the advance remittance with a specific waiver of bank guarantee from the ministry of finance, where the advance payment is equivalent to or exceeds $100,000. Banks are to report all such advances or remittances of over $5 million within 15 days of every six months.
Banks may use their own discretion to extend advance remittance to Indian importers in favour of global miners. Based on recommendations from the Gems & Jewellery Export Promotion Council (GJEPC), RBI had in 2007 notified five global miners of roughs — including Diamond Trading Company, UK; Rio Tinto, UK and BHP Billiton, Australia — to which an importer was allowed to make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs. The number was later extended to nine, including Al Rosa and Gokharan from Russia and Endiama EP from Angola.
“Henceforth, we will not notify the names of overseas mining companies from whom an importer may import rough diamonds into India, by way of advance payments, without any limit or bank guarantee or standby letter of credit,” RBI stated on Monday. At present, banks extend remittances to foreign miners on behalf of importers before the dispatch of consignments.
“RBI’s move will help the industry, as we will be able to procure rough diamonds from anywhere. Our hands will be free now,” said Shreyas Doshi, chairman, Shrenuj & Co.
Banks are now permitted to decide on the foreign mining companies to which an importer can make advance payments, without any limit or bank guarantee or standby letter of credit, the circular clarified. RBI cautioned that mining company in question should have recommendations from GJEPC and importers, be a recognised processor of roughs and have a good record.
The advance payment should be transferred directly to the account of the company concerned, not through numbered accounts or otherwise. The regulator has ,however, restricted remittances to any mining company without certification from the Kimberly Process Certification Scheme, established in 2003 by the United Nations to prevent diamond sales from financing war or human rights abuses.
For public sector undertakings, banks may permit the advance remittance with a specific waiver of bank guarantee from the ministry of finance, where the advance payment is equivalent to or exceeds $100,000. Banks are to report all such advances or remittances of over $5 million within 15 days of every six months.
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