Chennai: Multinational automotive plants in India rank among the top across the world in terms of their productivity and quality. Top auto MNCs like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. Despite fighting it out with factories in much larger markets - including the US and China - some of these plants fare better cranking out cars at upwards of 98-99% efficiency.
Take Hyundai Motor India (HMI) which has two plants in its Sriperumbudur facility near Chennai. The newer, second plant actually ranks number one in terms of productivity and quality according to Bo Shin Seo, CEO & MD, Hyundai Motor India (HMI). "Hyundai has plants in China, Russia, Brazil, the US (Alabama), Turkey and Czech Republic and in terms of operational average productivity ratio we are number one," he added. HMI's second plant makes two models and routinely hits average productivity ratio of upwards of 99.7%.
Of course a number of the bigger plants crank out many more volumes - Hyundai's China plant for example produces 4-5 different models while the newest factory in Brazil cranks out just one model but at "very high productivity ratio," he added. Between its two plants Hyundai can expand its production to hit 700,000 units on a three-shift basis though currently the volumes are lower due to the demand skid in the marketplace.
Hyundai isn't the only MNC to hit top spot with its Indian factory. Take Toyota Kirloskar Motor (TKM) which has invested around Rs 4700 crore to build two plants at its facility near Bangalore. Like HMI, TKM's plants too rank right up there among Toyota's global pecking order. "In the last three years we have had an internal shipping quality audit wherein a global team comes and checks vehicles randomly at the shipping yard for defects. On that basis, they have come to conclusion that TKM plants are the number one alongside Toyota's China and Thailand facilities," stated Shekar Vishwanathan, vice chairman, TKM.
Like the Hyundai plant, the TKM factories too run at 98-99% efficiency. "Efficiency is measured by both the speed of the conveyor belt as well as the ability to change the speed of the line according to demand variation," said Vishwanathan. "We make 600 vehicles per day over two shifts." The total capacity in the two plants is around 310,000 units over 278 working days in a year.
In terms of pecking order ranks though car marketleader Maruti hogs the lion's share of parent Suzuki's global production. With its 1.5 million unit a year current manufacturing capacity, Maruti is Suzuki International's largest production centre worldwide.
India comprises just short of half of Suzuki's global sales volumes and commands around 25% of its total sales revenue, said a Maruti executive. Maruti Suzuki plans to add another 250,000 units this year, with its new factory in Manesar at a cost of Rs 2100 crore. That plus the proposed Rs 4000 crore Gujarat plant - which will add another 250,000 unit capacity by 2015 - will take Maruti's total production numbers to two million units a year. Already Maruti's India sales are more than what the Japanese company sells in its home market in Japan.
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Showing posts with label kaizen sukumar. Show all posts
Showing posts with label kaizen sukumar. Show all posts
Friday, April 5, 2013
AMCs' average assets rise 19.5% in FY13
Mumbai: India’s asset management companies (AMCs) have seen a rise of 19.5 per cent in their average assets under management (AUM) in FY13. After dipping to less than Rs 7 lakh crore in the previous financial year, the sector has made a smart comeback —thanks to the high inflows in the debt funds and gains in the stock indices.
Interestingly, majority of the top 10 players have outperformed the industry's growth with a wide margin. For instance, Birla Sun Life Mutual Fund, ICICI Prudential MF, Kotak MF, IDFC MF and SBI MF, among others, registered a growth of between 25 and 40 per cent during the year. On the other hand, giants such as HDFC MF and Reliance MF managed to post a growth of 13 per cent and 21 per cent, respectively.
Srinivas Jain, chief marketing officer of SBI Mutual Fund, the sixth largest fund house with an average AUM of close to Rs 55,000 crore, says, “In FY13, we had good flows into our long-term fixed income funds and I believe that is true with the overall industry as well.” The fund house registered a whopping rise of 30.6 per cent in its AUM during the year.
According to the latest statistics available from industry body Association of Mutual Funds in India (Amfi), the sector’s average assets stood at Rs 8.16 lakh crore as on March 31, 2013, compared to Rs 6.64 lakh crore a year ago. Whereas in the quarter ended March 31, 2013, average assets grew a little less than a percentage point.
Reliance Mutual Fund, whose assets had dipped to below Rs 80,000 crore, came back strongly and inched close to its lost Rs 1-lakh crore mark with assets at Rs 94,580 crore.
Top officials at Reliance MF told Business Standard the fund house’s continued focus on retail has helped. “Our focus on non-liquid is helping us improve,” said an official.
According to Dhruva Chatterji, senior research analyst at Morningstar India, high flows in the intermediate to long-term bond funds in the debt category pushed up assets of the industry.
“Till February, our study shows there is a rise of 600 per cent in the assets of bond funds (year-on-year). Most of the assets inflows came in the second half of FY13 as expectations built up for rate cuts.”
Gilt funds, which invest primarily in government securities, attracted a consistent sum of Rs 1,000 crore for several months in the second half. “Of late, with a rise of one per cent point in short-term rates, we are also witnessing money flowing into the liquid funds with duration of three to six months,” added Chatterji.
According to experts, despite 11 months of net outflows from the equity segment during the year, rise in stock markets also helped push up the average assets of equity funds to a certain extent.
Interestingly, majority of the top 10 players have outperformed the industry's growth with a wide margin. For instance, Birla Sun Life Mutual Fund, ICICI Prudential MF, Kotak MF, IDFC MF and SBI MF, among others, registered a growth of between 25 and 40 per cent during the year. On the other hand, giants such as HDFC MF and Reliance MF managed to post a growth of 13 per cent and 21 per cent, respectively.
Srinivas Jain, chief marketing officer of SBI Mutual Fund, the sixth largest fund house with an average AUM of close to Rs 55,000 crore, says, “In FY13, we had good flows into our long-term fixed income funds and I believe that is true with the overall industry as well.” The fund house registered a whopping rise of 30.6 per cent in its AUM during the year.
According to the latest statistics available from industry body Association of Mutual Funds in India (Amfi), the sector’s average assets stood at Rs 8.16 lakh crore as on March 31, 2013, compared to Rs 6.64 lakh crore a year ago. Whereas in the quarter ended March 31, 2013, average assets grew a little less than a percentage point.
Reliance Mutual Fund, whose assets had dipped to below Rs 80,000 crore, came back strongly and inched close to its lost Rs 1-lakh crore mark with assets at Rs 94,580 crore.
Top officials at Reliance MF told Business Standard the fund house’s continued focus on retail has helped. “Our focus on non-liquid is helping us improve,” said an official.
According to Dhruva Chatterji, senior research analyst at Morningstar India, high flows in the intermediate to long-term bond funds in the debt category pushed up assets of the industry.
“Till February, our study shows there is a rise of 600 per cent in the assets of bond funds (year-on-year). Most of the assets inflows came in the second half of FY13 as expectations built up for rate cuts.”
Gilt funds, which invest primarily in government securities, attracted a consistent sum of Rs 1,000 crore for several months in the second half. “Of late, with a rise of one per cent point in short-term rates, we are also witnessing money flowing into the liquid funds with duration of three to six months,” added Chatterji.
According to experts, despite 11 months of net outflows from the equity segment during the year, rise in stock markets also helped push up the average assets of equity funds to a certain extent.
Thursday, April 4, 2013
New norms for FII investments in govt, corporate bonds
New Delhi: The Finance Ministry has created two new sub-limits to enable foreign institutional investors (FIIs) park their funds in short-term papers of Government securities (G-secs) and corporate bonds.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
Thursday, March 28, 2013
Abu Dhabi based Etihad Airways inks wet lease pact with Jet Airways
Mumbai: Jet Airways, India's second largest airline by market share, has leased a wide body aircraft along with 60 of its cabin crew to Abu Dhabi based Etihad Airways, a move that indicates a burgeoning partnership, even before the two airlines ink an equity stake sale.
In aviation parlance, a wet lease of an aircraft is an arrangement whereby the lessor, in this instance Jet, provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.
The cabin crew will be trained by Etihad in Mumbai over the next three months. This is the second such collaborative agreement between the two carriers who are engaged in protracted discussions for over three months for an equity partnership and a strategic alliance. Jet had earlier announced a sale and lease back of Jet's Heathrow-London slots for $70 million in February to Etihad. Confirming this, Jet CEO Nikos Kardassis said the crew was surplus with Jet as it has withdrawn flights to its European hub in Brussels originating from Chennai.
"We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis texted in response to ET's query over the issue.
Jet has a fleet of over 100 aircraft, including the 11 Airbus A330-200 type that it deploys on long haul international flights. Jet took delivery of a different series of this aircraft, the A330-300 in December last year and said it will induct another three soon to expand its Airbus wide body aircraft fleet. Jet deployed the 300 series aircraft on the Mumbai-Brussels route. The A330-300 will also replace two leased A330-200 type, the airline had said.
Aviation analysts see this move by Jet to wet lease aircraft to Etihad as the beginning of many more of such initiatives to be announced by the Naresh Goyal-promoted carrier as the deal between the two is seen as a more comprehensive strategic and collaborative alliance and not just an equity deal.
The airline has sought additional seats to Abu Dhabi for its summer schedule (some reports suggest 10,000 more seats) and according to the civil aviation minster Ajit Singh, the ministry is also considering a more comprehensive code-share request by Jet with Etihad. Some aviation analysts see the manpower supply from India to Middle Eastern countries as a crucial part of the tie-up between the Indian carrier and the fast expanding Etihad.
"The HR is critical part of this deal and we expect Etihad will increasingly depend on Jet to supply trained manpower for their expansion.
The wet leasing of the crew is the just the beginning. India provides low cost and trained manpower with ability to deliver higher productivity to the Middle East (ME) carriers and is vital component of their business model. Given the size of their (ME carriers) expansion, sourcing manpower from India/south Asia will increase significantly in the near term," said Kapil Kaul, CEO, South Asia, Centre for Asia-Pacific Aviation. He added that Jet has always very successfully managed to sub-lease their wide body aircraft as and when required. "Etihad will continue to provide strategic support to Jet," said Kaul.
In aviation parlance, a wet lease of an aircraft is an arrangement whereby the lessor, in this instance Jet, provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.
The cabin crew will be trained by Etihad in Mumbai over the next three months. This is the second such collaborative agreement between the two carriers who are engaged in protracted discussions for over three months for an equity partnership and a strategic alliance. Jet had earlier announced a sale and lease back of Jet's Heathrow-London slots for $70 million in February to Etihad. Confirming this, Jet CEO Nikos Kardassis said the crew was surplus with Jet as it has withdrawn flights to its European hub in Brussels originating from Chennai.
"We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis texted in response to ET's query over the issue.
Jet has a fleet of over 100 aircraft, including the 11 Airbus A330-200 type that it deploys on long haul international flights. Jet took delivery of a different series of this aircraft, the A330-300 in December last year and said it will induct another three soon to expand its Airbus wide body aircraft fleet. Jet deployed the 300 series aircraft on the Mumbai-Brussels route. The A330-300 will also replace two leased A330-200 type, the airline had said.
Aviation analysts see this move by Jet to wet lease aircraft to Etihad as the beginning of many more of such initiatives to be announced by the Naresh Goyal-promoted carrier as the deal between the two is seen as a more comprehensive strategic and collaborative alliance and not just an equity deal.
The airline has sought additional seats to Abu Dhabi for its summer schedule (some reports suggest 10,000 more seats) and according to the civil aviation minster Ajit Singh, the ministry is also considering a more comprehensive code-share request by Jet with Etihad. Some aviation analysts see the manpower supply from India to Middle Eastern countries as a crucial part of the tie-up between the Indian carrier and the fast expanding Etihad.
"The HR is critical part of this deal and we expect Etihad will increasingly depend on Jet to supply trained manpower for their expansion.
The wet leasing of the crew is the just the beginning. India provides low cost and trained manpower with ability to deliver higher productivity to the Middle East (ME) carriers and is vital component of their business model. Given the size of their (ME carriers) expansion, sourcing manpower from India/south Asia will increase significantly in the near term," said Kapil Kaul, CEO, South Asia, Centre for Asia-Pacific Aviation. He added that Jet has always very successfully managed to sub-lease their wide body aircraft as and when required. "Etihad will continue to provide strategic support to Jet," said Kaul.
India to be Third Largest Aviation Market by 2020
New Delhi: Speaking at a function in the capital on the occasion of Aviation Day, the Minister for Civil Aviation, Shri Ajit Singh said that, India would be the third largest aviation market by 2020. Addressing senior representatives of the aviation industry, Shri Ajit Singh informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion by 2020.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
Tuesday, March 26, 2013
Costa Coffee to add 200 stores in India by 2015
Chennai: Costa Coffee, the coffee shop chain brand under the UK-based multinational hotel, coffee shop and restaurant company Whitbread, is looking at expanding its presence in India with another 200 outlets within 2015, which would require an investment of around Rs 200 crore. The company, which claims as the world's second largest coffee chain,is planning to add around 1,000 outlets across the country by 2015-16, according to company officials.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
Cairn India to invest $2 b in Rajasthan in two years
Barmer: Cairn India, a Vedanta Group Company, on Saturday said it would invest $2 billion in the next two years to develop its Barmer block in Rajasthan.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
Government issues norms for setting up manufacturing zones
New Delhi: The government has issued norms for setting up of manufacturing zones under the national manufacturing policy, giving them many benefits, including tax sops.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
Govt eases norms to attract foreign investors
New Delhi: The government on Saturday announced simplification of removal of norms for foreign institutional investors (FIIs) to invest in government and corporate bonds, in its latest attempt to woo overseas investors to finance the widening current account deficit.
The move, which will be applicable from April 1, was among the major demands made by FIIs during their recent interaction with finance minister P Chidambaram and his team. From next month, the government, Sebi and the Reserve Bank of India (RBI) have decided to remove sub-limits for FIIs within the overall cap for bonds.
From now on, there will only be two ceilings — a $25-billion limit for investment in government securities that has been formed by merging g-secs (old) and g-secs (long term). In addition, there will be a $51-billion sub-limit for corporate bonds that will include the existing one for FIIs ($25 billion), qualified foreign investors ($1 billion) and $25 billion for FIIs in long term infrastructure bonds.
Chidambaram told the National Editors' Conference here that Sebi's current mechanism for allocating debt limits for corporate bonds will be replaced by the 'on tap system' that is used for infrastructure bonds. To make the regime more predictable, the government said that the corporate bond ceiling when 80% of the limit was exhausted.
In case of g-secs, however, the government appeared more cautious and decided to limit the annual enhancement within 5% of Centre's gross borrowings during a fiscal. The government has budgeted for borrowings of Rs 5.79 lakh crore, which means that the government can at best enhance the ceiling for the current fiscal by around $5 billion.
"The current account deficit (CAD) can be financed only through foreign inflows and that is why I am happy to announce a major rationalization of foreign investment in government securities and corporate bonds," the minister said. FII flows and foreign direct investment are crucial for India to fund its current account deficit that is expected to hit 4.5% of GDP during the current financial year. Large inflows would check against a steep depreciation of the rupee and ensure that there are sufficient foreign exchange reserves to cover for imports.
The move, which will be applicable from April 1, was among the major demands made by FIIs during their recent interaction with finance minister P Chidambaram and his team. From next month, the government, Sebi and the Reserve Bank of India (RBI) have decided to remove sub-limits for FIIs within the overall cap for bonds.
From now on, there will only be two ceilings — a $25-billion limit for investment in government securities that has been formed by merging g-secs (old) and g-secs (long term). In addition, there will be a $51-billion sub-limit for corporate bonds that will include the existing one for FIIs ($25 billion), qualified foreign investors ($1 billion) and $25 billion for FIIs in long term infrastructure bonds.
Chidambaram told the National Editors' Conference here that Sebi's current mechanism for allocating debt limits for corporate bonds will be replaced by the 'on tap system' that is used for infrastructure bonds. To make the regime more predictable, the government said that the corporate bond ceiling when 80% of the limit was exhausted.
In case of g-secs, however, the government appeared more cautious and decided to limit the annual enhancement within 5% of Centre's gross borrowings during a fiscal. The government has budgeted for borrowings of Rs 5.79 lakh crore, which means that the government can at best enhance the ceiling for the current fiscal by around $5 billion.
"The current account deficit (CAD) can be financed only through foreign inflows and that is why I am happy to announce a major rationalization of foreign investment in government securities and corporate bonds," the minister said. FII flows and foreign direct investment are crucial for India to fund its current account deficit that is expected to hit 4.5% of GDP during the current financial year. Large inflows would check against a steep depreciation of the rupee and ensure that there are sufficient foreign exchange reserves to cover for imports.
Friday, March 15, 2013
Infosys bags BMW contract for infra management services
Bengaluru: In a deal that will help it gain more share in the European market, Infosys announced that it has won a five-year deal from BMW Group for application basis infrastructure management services.
Infosys will open a new delivery centre in Munich as part of its global service delivery team and cover services, such as maintenance and operations of the web infrastructure, content management, SAP Basis operations, IT for IT (the company's internal IT system) and the business intelligence systems of BMW Group.
The second-largest IT services firm in the country garners around 24% of the revenues from Europe, where it is looking for more growth.
Last September, it acquired Swiss consulting firm, Lodestone, for over $350 million (Rs 1,930 crore). In the third quarter of fiscal 2013, the revenues from Euro went up 16.6% sequentially and 14.4% on constant currency terms. This was a reflection of the business gain through the acquisition.
"Our new delivery centre in Munich will help us achieve this objective for BMW and allow us to expand our local presence in a key growth market," said Ashok Vemuri, global head of manufacturing and engineering services at Infosys,
Overall Europe contributes a little under 30% of the $76 billion in exports that the Indian IT-BPO industry is expected to clock in the year to March 2013, with most of it coming from the UK and Nordic region
Infosys will open a new delivery centre in Munich as part of its global service delivery team and cover services, such as maintenance and operations of the web infrastructure, content management, SAP Basis operations, IT for IT (the company's internal IT system) and the business intelligence systems of BMW Group.
The second-largest IT services firm in the country garners around 24% of the revenues from Europe, where it is looking for more growth.
Last September, it acquired Swiss consulting firm, Lodestone, for over $350 million (Rs 1,930 crore). In the third quarter of fiscal 2013, the revenues from Euro went up 16.6% sequentially and 14.4% on constant currency terms. This was a reflection of the business gain through the acquisition.
"Our new delivery centre in Munich will help us achieve this objective for BMW and allow us to expand our local presence in a key growth market," said Ashok Vemuri, global head of manufacturing and engineering services at Infosys,
Overall Europe contributes a little under 30% of the $76 billion in exports that the Indian IT-BPO industry is expected to clock in the year to March 2013, with most of it coming from the UK and Nordic region
HPCL's Rs 37,320-cr refinery project to come up in Rajasthan
Coimbatore: PSU oil major Hindustan Petroleum Corporation Ltd (HPCL) signed an MoU today in Jaipur with the Rajasthan Government for the establishment of a 9 MMTPA refinery –cum-petrochemical complex at an investment of Rs 37,230 crore.
HPCL is setting up the complex in Barmer district in association with Rajasthan State Refinery Ltd (RSRL) and others and it would go on stream in about four years.
In a statement to the stock exchanges, HPCL said the refinery would process the Rajasthan crude in addition to crude from other sources. The MoU was signed by Sudhansh Pant, Secretary, Mines & Petroleum of Government of Rajasthan and K.Murali, Director (Refineries), HPCL.
Veerappa Moily, Union Minister of Petroleum & Natural Gas, who was present on the occasion, expressed confidence that the refinery would become a catalyst for the development of downstream and other service sector industries in the area. He said the planned refinery project was the first project that was specifically designed to process indigenous crude.
Rajasthan Chief Minister Ashok Gehlot, lauding HPCL for its initiative, was confident that it would address the environmental issues and contribute to the community development in the region.
Among others who attended the MoU signing ceremony were Lakshmi Panabaka, Union Minister of State for Petroleum and Natural Gas, Rajasthan Ministers, and senior officials of GoI, Rajasthan Government, HPCL, EIL and ONGC.
HPCL is setting up the complex in Barmer district in association with Rajasthan State Refinery Ltd (RSRL) and others and it would go on stream in about four years.
In a statement to the stock exchanges, HPCL said the refinery would process the Rajasthan crude in addition to crude from other sources. The MoU was signed by Sudhansh Pant, Secretary, Mines & Petroleum of Government of Rajasthan and K.Murali, Director (Refineries), HPCL.
Veerappa Moily, Union Minister of Petroleum & Natural Gas, who was present on the occasion, expressed confidence that the refinery would become a catalyst for the development of downstream and other service sector industries in the area. He said the planned refinery project was the first project that was specifically designed to process indigenous crude.
Rajasthan Chief Minister Ashok Gehlot, lauding HPCL for its initiative, was confident that it would address the environmental issues and contribute to the community development in the region.
Among others who attended the MoU signing ceremony were Lakshmi Panabaka, Union Minister of State for Petroleum and Natural Gas, Rajasthan Ministers, and senior officials of GoI, Rajasthan Government, HPCL, EIL and ONGC.
Wave Infra to invest Rs 500 cr in affordable housing
New Delhi: Wave Infratech, the realty arm of Ponty Chadha’s Wave Group, will invest Rs 500 crore to set up its first affordable housing venture in the Delhi national capital region area, which will offer homes in a price range of Rs 14-18 lakh.
The construction for the project, ‘Dream Homes’, will start this month at the company’s integrated township — Wave City in Ghaziabad, Uttar Pradesh — and will be completed in three-four years, R K Panpalia, managing director, Wave Group, told Business Standard. In the first phase, the company will set up 1,500 flats in this segment.
With the recent Budget announcements, the sales in the affordable segment are expected to increase, he said. In the Budget, the limit for deduction of home interest was increased to Rs 2.5 lakh from Rs 1.5 lakh for the first time home buyers for a loan amount of up to Rs 25 lakh.
Wave City, which is spread over 4,500 acres, will have hospitals, schools and other commercial set-up, including hotels in the second phase of the project, besides villas, independent floors and plots. The company will offer 1BHK and 2BHK homes with an area of 575-800 square feet. In total, it will provide 3,500 flats — 800 (1BHK) and 2,700 (2BHK) homes.
The investment will be done through internal accruals and debt and the company has no plans to raise money through private equity or go in for an initial public offerring at the moment, Panpalia added.
The construction for the project, ‘Dream Homes’, will start this month at the company’s integrated township — Wave City in Ghaziabad, Uttar Pradesh — and will be completed in three-four years, R K Panpalia, managing director, Wave Group, told Business Standard. In the first phase, the company will set up 1,500 flats in this segment.
With the recent Budget announcements, the sales in the affordable segment are expected to increase, he said. In the Budget, the limit for deduction of home interest was increased to Rs 2.5 lakh from Rs 1.5 lakh for the first time home buyers for a loan amount of up to Rs 25 lakh.
Wave City, which is spread over 4,500 acres, will have hospitals, schools and other commercial set-up, including hotels in the second phase of the project, besides villas, independent floors and plots. The company will offer 1BHK and 2BHK homes with an area of 575-800 square feet. In total, it will provide 3,500 flats — 800 (1BHK) and 2,700 (2BHK) homes.
The investment will be done through internal accruals and debt and the company has no plans to raise money through private equity or go in for an initial public offerring at the moment, Panpalia added.
US firm Harsco open to acquisitions in railway infrastructure
Hyderabad: Harsco Corporation, a global industrial services company with revenues of $3 billion, is looking at forging alliances and acquisitions in India.
The company, which is into metals and minerals, infrastructure, rail and industrial businesses, is operating in India for two decades but reports small percentage of its global revenues.
The newly-appointed President and Chief Executive Officer of the Pennsylvania-headquartered company, Patrick K. Decker, is in India to take stock of the company affairs and business opportunities here.
Decker said there was huge scope for business in railway infrastructure in China and India.
The old and worn-out rail infrastructure needs to be rebuilt. “We are in early stages of pursuing that business,” he said.
Addressing a press conference here, he, however, refused to put a number to the opportunities being pursedor the target for Indian operations. “We are open to acquisitions. But I am against acquiring any company for the sake of acquisitions,” he said.
The company runs a Global Innovation Park here with 220 staffers. Of the 19,000 employees globally, around 700 work for its India operations. It recently bagged a 15-year $100 million contract with Jindal Stainless. Harsco’s services are scheduled to begin in the second half of this year and will include the company’s specialised process technologies for recovering metal from stainless steel production by-products.
The firm acquired over 20 companies globally. With a cash back-up of $100 million, it also had credit lines and opportunities to raise debt for buy-outs, if any, he said.
Environmental issues
Refusing to comment on the country’s overall (mining and environment) policies, he said these trends would continue, making Harsco’s services more valuable.
On the growth projections globally, he said the company was cautiously optimistic.
The company, which is into metals and minerals, infrastructure, rail and industrial businesses, is operating in India for two decades but reports small percentage of its global revenues.
The newly-appointed President and Chief Executive Officer of the Pennsylvania-headquartered company, Patrick K. Decker, is in India to take stock of the company affairs and business opportunities here.
Decker said there was huge scope for business in railway infrastructure in China and India.
The old and worn-out rail infrastructure needs to be rebuilt. “We are in early stages of pursuing that business,” he said.
Addressing a press conference here, he, however, refused to put a number to the opportunities being pursedor the target for Indian operations. “We are open to acquisitions. But I am against acquiring any company for the sake of acquisitions,” he said.
The company runs a Global Innovation Park here with 220 staffers. Of the 19,000 employees globally, around 700 work for its India operations. It recently bagged a 15-year $100 million contract with Jindal Stainless. Harsco’s services are scheduled to begin in the second half of this year and will include the company’s specialised process technologies for recovering metal from stainless steel production by-products.
The firm acquired over 20 companies globally. With a cash back-up of $100 million, it also had credit lines and opportunities to raise debt for buy-outs, if any, he said.
Environmental issues
Refusing to comment on the country’s overall (mining and environment) policies, he said these trends would continue, making Harsco’s services more valuable.
On the growth projections globally, he said the company was cautiously optimistic.
Wednesday, March 13, 2013
India-Australia free trade pact can deepen ties
Chennai: Australia is eager to negotiate a comprehensive economic partnership (essentially a free trade agreement) to intensify and diversify the trade partnership with India, said Patrick Suckling, Australian High Commissioner. There is strong political commitment on this and four rounds of negotiations have been held, said Suckling, addressing the 23rd annual day of the Indo-Australian Chamber of Commerce in the city.
Goods tariffs have already been exchanged and services tariffs will be discussed soon, he said. A fifth round of negotiations will be held in May in Australia. Bilateral trade between the two countries stands at $22 billion and has the potential to double in a few years. Last year, India invested $11 billion in Australia. Indian exports to Australia doubled to $3 billion, in the last few years.
“Economic relations will be the bedrock of the relationship growing forward,” said Suckling. Four top Australian banks, infrastructure, education, agri- business and biotech companies from Australia are in India. Indian interest in Australia encompasses aircraft technology, medical, IT and education, he said.
Trade agenda
The G20 forum of which both India and Australia are members is looking to promote a quick economic recovery. “We are working closely with India on a sustainable global growth and trade agenda.” The high commissioner said security cooperation, especially maritime security, will also be deepened between the two countries.
Australia is committed to negotiating safeguards with India to sell uranium, which is currently not exported as India is not a signatory to the non-proliferation treaty, said Suckling.
Safeguarding Indians
People to people relations are also growing, said Suckling. Around 450,000 people of Indian origin are in Australia. Indians are the fastest growing migrant group. Indians also comprise the second largest student population, after Chinese students. (In 2012, there were 55,000 Indian students in Australia).
Goods tariffs have already been exchanged and services tariffs will be discussed soon, he said. A fifth round of negotiations will be held in May in Australia. Bilateral trade between the two countries stands at $22 billion and has the potential to double in a few years. Last year, India invested $11 billion in Australia. Indian exports to Australia doubled to $3 billion, in the last few years.
“Economic relations will be the bedrock of the relationship growing forward,” said Suckling. Four top Australian banks, infrastructure, education, agri- business and biotech companies from Australia are in India. Indian interest in Australia encompasses aircraft technology, medical, IT and education, he said.
Trade agenda
The G20 forum of which both India and Australia are members is looking to promote a quick economic recovery. “We are working closely with India on a sustainable global growth and trade agenda.” The high commissioner said security cooperation, especially maritime security, will also be deepened between the two countries.
Australia is committed to negotiating safeguards with India to sell uranium, which is currently not exported as India is not a signatory to the non-proliferation treaty, said Suckling.
Safeguarding Indians
People to people relations are also growing, said Suckling. Around 450,000 people of Indian origin are in Australia. Indians are the fastest growing migrant group. Indians also comprise the second largest student population, after Chinese students. (In 2012, there were 55,000 Indian students in Australia).
Biyani, Hong Kong billionaire to form JV
Mumbai: Future Group founder Kishore Biyani has planned a 50:50 venture with the family investment vehicle of Hong Kong-based billionaire Victor K Fung, for imports and wholesaling.
The joint venture will be outside Future's listed entity, Pantaloon Retail, and be part of Future's investment vehicles, sources said. The venture is to operate large wholesale markets on the lines of the YIWU market in China and Dragon Mart in Dubai, and to import products from China and other Asian countries and sell to Indian retail chains and small retailers.
Future and Fung Group already have a partnership with Bangalore-based Sattva Properties to develop a wholesale market in the city. A second one is expected to come up in Mumbai in the next couple of months.
"Our family investment vehicle wants a closer relationship with Future Group and we want to support them in wholesaling and cash & carry ventures in the country," said Victor K Fung, at the launch of the distribution centre of Future Supply Chains (FSC), logistics arm of Future Group, in Nagpur yesterday.
Fung Group has 26 per cent stake in FSC, which it had bought for $30 million.
The 1.5 million sq ft wholesale market coming up in Bangalore will have a wholesale store run by the Future-Fung combine, with the rest of the space leased to multiple wholesellers. Depending on the success, the partners are looking to roll it out in other parts of the country, said Rajesh Ranavat, who looks after the Fung family's business interests in India.
While the venture will focus on supplying slightly high-end products to modern trade, it will supply mass products to smaller retailers.
Fung Holdings, the privately-held entity of Fung Group, is into trading, distribution, retailing and logistics. It does business in 40 countries and its revenue in 2011 was S$21 billion.
"We want to cater to both modern trade and small retailers who want imported products from China and other countries. We can look at importing for chains such as Shoppers Stop and Lifestyle," Ranavat said.
Fung Group is also looking at increasing its stake in FSC. "We are looking at that. That could be a possibility," he said. "The existing venture is beyond breakeven. It never lost money."
The joint venture will be outside Future's listed entity, Pantaloon Retail, and be part of Future's investment vehicles, sources said. The venture is to operate large wholesale markets on the lines of the YIWU market in China and Dragon Mart in Dubai, and to import products from China and other Asian countries and sell to Indian retail chains and small retailers.
Future and Fung Group already have a partnership with Bangalore-based Sattva Properties to develop a wholesale market in the city. A second one is expected to come up in Mumbai in the next couple of months.
"Our family investment vehicle wants a closer relationship with Future Group and we want to support them in wholesaling and cash & carry ventures in the country," said Victor K Fung, at the launch of the distribution centre of Future Supply Chains (FSC), logistics arm of Future Group, in Nagpur yesterday.
Fung Group has 26 per cent stake in FSC, which it had bought for $30 million.
The 1.5 million sq ft wholesale market coming up in Bangalore will have a wholesale store run by the Future-Fung combine, with the rest of the space leased to multiple wholesellers. Depending on the success, the partners are looking to roll it out in other parts of the country, said Rajesh Ranavat, who looks after the Fung family's business interests in India.
While the venture will focus on supplying slightly high-end products to modern trade, it will supply mass products to smaller retailers.
Fung Holdings, the privately-held entity of Fung Group, is into trading, distribution, retailing and logistics. It does business in 40 countries and its revenue in 2011 was S$21 billion.
"We want to cater to both modern trade and small retailers who want imported products from China and other countries. We can look at importing for chains such as Shoppers Stop and Lifestyle," Ranavat said.
Fung Group is also looking at increasing its stake in FSC. "We are looking at that. That could be a possibility," he said. "The existing venture is beyond breakeven. It never lost money."
Temasek Holdings invests Rs 140 crore in HealthCare Global Enterprises
Bengaluru: Temasek Holdings, Singapore's state-owned investment company, has invested Rs 140 crore in Bangalore-headquartered cancer care provider HealthCare Global Enterprises (HCG).
The deal, which closed this week, values the company around Rs 1,000 crore, with HCG's founder and chairman BS Ajaikumar retaining a 26-28% stake, according to a person with direct knowledge of the deal.
"This investment is a good wake-up call that India is ready to take centre stage in oncology," said Ajaikumar. "It is a good feeling." The company will use the funding to double its network to 50 centres in India and Africa. It also has plans to enter the multi-speciality space.
Temasek joins existing investors Premji Invest, an investment entity owned by Wipro chairman Azim Premji, and Milestone Religare in a primary equity issuance by the company.
"We are pleased to invest in this firm which has redefined cancer care in India," said Rohit Sipahimalani, who heads the India practice for Temasek. The investment firm's $157-billion portfolio counts Bank of China, telecom firm Airtel and Singapore Airlines among its major companies.
Temasek's investment in HCG has also paved the way for Dubai-based alternative investment house Evolvence Capital to exit. The firm which had invested 30 crore in HCG almost five years ago out of its Evolvence India Life Sciences Fund has gained close to 2.3 times return on investment.
This is the second time that a private equity fund has made a successful exit from HCG. The medical care provider initially raised Rs 50-crore from IDFC Private Equity almost seven years ago. When HCG raised a subsequent round of 240 crore from Premji Invest and Milestone, it enabled IDFC to exit the venture last year in April.
"Investors are chasing single-speciality chains instead of multi-speciality, as the model is more profitable, focused and it is easier to predict the outcome," said Harish HV, partner at Grant Thornton India.
Private equity and venture capital investments in the healthcare industry in India are increasing rapidly as supply is woefully low and demand continues to surge. Last year, the industry absorbed $1.2 billion across 48 deals, according to research firm Venture Intelligence. In 2011, there were 38 deals in the sector worth $421 million.
The deal, which closed this week, values the company around Rs 1,000 crore, with HCG's founder and chairman BS Ajaikumar retaining a 26-28% stake, according to a person with direct knowledge of the deal.
"This investment is a good wake-up call that India is ready to take centre stage in oncology," said Ajaikumar. "It is a good feeling." The company will use the funding to double its network to 50 centres in India and Africa. It also has plans to enter the multi-speciality space.
Temasek joins existing investors Premji Invest, an investment entity owned by Wipro chairman Azim Premji, and Milestone Religare in a primary equity issuance by the company.
"We are pleased to invest in this firm which has redefined cancer care in India," said Rohit Sipahimalani, who heads the India practice for Temasek. The investment firm's $157-billion portfolio counts Bank of China, telecom firm Airtel and Singapore Airlines among its major companies.
Temasek's investment in HCG has also paved the way for Dubai-based alternative investment house Evolvence Capital to exit. The firm which had invested 30 crore in HCG almost five years ago out of its Evolvence India Life Sciences Fund has gained close to 2.3 times return on investment.
This is the second time that a private equity fund has made a successful exit from HCG. The medical care provider initially raised Rs 50-crore from IDFC Private Equity almost seven years ago. When HCG raised a subsequent round of 240 crore from Premji Invest and Milestone, it enabled IDFC to exit the venture last year in April.
"Investors are chasing single-speciality chains instead of multi-speciality, as the model is more profitable, focused and it is easier to predict the outcome," said Harish HV, partner at Grant Thornton India.
Private equity and venture capital investments in the healthcare industry in India are increasing rapidly as supply is woefully low and demand continues to surge. Last year, the industry absorbed $1.2 billion across 48 deals, according to research firm Venture Intelligence. In 2011, there were 38 deals in the sector worth $421 million.
Thursday, October 25, 2012
Genpact signs deal with Diageo to offer FandA services
Bengaluru: Genpact, the business process outsourcing services provider has bagged a contract from Diageo, the world’s biggest distiller. This is to provide the company financial and accounting processing services, by establishing a near-shore shared services centre.
The company did not disclose the financial details of the contract. As part of the deal, Genpact has set up a shared services centre in Bogota, the capital of Colombia, where the employees of both the companies will work alongside.
The centre will initially house 65 employees and then gradually be ramped up to 200 by the end of 2013. According to Diageo Commercial Director Gregorio Gutierrez, by developing the shared services centre model in partnership with Genpact, the company will be able to consolidate and improve its F&A functions in Latin America. This will enable the company to focus on its core business.
The shared services centre is located in the Bogota Free Trade Zone, in the Zona Franca business park.
“Genpact and Diageo are partnering to optimise Diageo’s comprehensive F&A operations and consolidating these operations into the new centre in Bogotá, which to date have been managed across multiple Latin American countries,” a joint statement from both the companies said.
The company did not disclose the financial details of the contract. As part of the deal, Genpact has set up a shared services centre in Bogota, the capital of Colombia, where the employees of both the companies will work alongside.
The centre will initially house 65 employees and then gradually be ramped up to 200 by the end of 2013. According to Diageo Commercial Director Gregorio Gutierrez, by developing the shared services centre model in partnership with Genpact, the company will be able to consolidate and improve its F&A functions in Latin America. This will enable the company to focus on its core business.
The shared services centre is located in the Bogota Free Trade Zone, in the Zona Franca business park.
“Genpact and Diageo are partnering to optimise Diageo’s comprehensive F&A operations and consolidating these operations into the new centre in Bogotá, which to date have been managed across multiple Latin American countries,” a joint statement from both the companies said.
Six Indian energy firms in Platts’ top 50 global rankings
New Delhi: Indian firms have pride of place at the 2012 Platts Top 250 Global Energy Company RankingsTM.
Of the 12 Indian companies represented in the 250, six are have also made to the list of top 50 fastest growing companies.
All eyes were on China, India and the wider Asia-Pacific region when it came to rapid financial growth and fast rising energy companies. A statement said that 70 companies from the region were in the spotlight when the 2012 Platts 250 Global Energy Companies Rankings were released in Singapore on Tuesday.
According to Platts, Cairn India took the top slot as the fastest-growing company not just in Asia but the world. With a 119.8 per cent three-year compounded growth rate (CGR), Cairn India was far ahead in the field.
The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset worth, revenues, profits and return on invested capital (ROIC).
Indian companies surged ahead in both the independent power producers (IPP) and gas utility categories, with NTPC Ltd and GAIL (India) topping their respective regional segments, Platts ranking showed.
A surprise entry at number two in ROIC rankings was Coal India Ltd with 35.3 per cent, it said. A new entrant to the rankings in 2010, when the company listed, Coal India has posted strong returns on invested capital in both years, an achievement given the challenges it faces, Platts said
China continues to grow in the energy business with 23 Chinese companies on the 2012 roster, giving it more companies in the Top 250 than any other country, except the US.
PetroChina Company Ltd took over the 9th position and China Petroleum & Chemical Corp acquired the 12th position in the global Top 250 list.
However, in an East-West comparison, Western majors still reign the rankings. Western companies took all top 10 spots on the 2012 list, except for one – ninth place – which went to PetroChina Co Ltd.
ExxonMobil retained the number one spot of the Top 250 roster for the eighth consecutive year. Anglo-Dutch major Royal Dutch Shell moved up from sixth position to second, displacing US major Chevron to third. ConocoPhillips dropped one place from seventh to eighth.
Of all the Indian companies in the top 250, Power Grid Corp improved its overall ranking, rising from 232 {+n} {+d} in 2010 to 172 {+n} {+d} in 2011. Other significant moves include a rise of 21 places for power producer NHPC Ltd to 195 {+t} {+h} {+.}
Among electric utilities, Reliance Infrastructure Ltd gained 17 places to 215 {+t} {+h}.
“India’s enormous growth in energy demand has led to its rise as the emerging energy leader on the global front,” said Vandana Hari, Asia Editorial Director, Platts. “Although these represent the bright spots for financial performance in 2011, 2012 may prove more challenging for India’s power generators,” she added. richa.mishra
Of the 12 Indian companies represented in the 250, six are have also made to the list of top 50 fastest growing companies.
All eyes were on China, India and the wider Asia-Pacific region when it came to rapid financial growth and fast rising energy companies. A statement said that 70 companies from the region were in the spotlight when the 2012 Platts 250 Global Energy Companies Rankings were released in Singapore on Tuesday.
According to Platts, Cairn India took the top slot as the fastest-growing company not just in Asia but the world. With a 119.8 per cent three-year compounded growth rate (CGR), Cairn India was far ahead in the field.
The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset worth, revenues, profits and return on invested capital (ROIC).
Indian companies surged ahead in both the independent power producers (IPP) and gas utility categories, with NTPC Ltd and GAIL (India) topping their respective regional segments, Platts ranking showed.
A surprise entry at number two in ROIC rankings was Coal India Ltd with 35.3 per cent, it said. A new entrant to the rankings in 2010, when the company listed, Coal India has posted strong returns on invested capital in both years, an achievement given the challenges it faces, Platts said
China continues to grow in the energy business with 23 Chinese companies on the 2012 roster, giving it more companies in the Top 250 than any other country, except the US.
PetroChina Company Ltd took over the 9th position and China Petroleum & Chemical Corp acquired the 12th position in the global Top 250 list.
However, in an East-West comparison, Western majors still reign the rankings. Western companies took all top 10 spots on the 2012 list, except for one – ninth place – which went to PetroChina Co Ltd.
ExxonMobil retained the number one spot of the Top 250 roster for the eighth consecutive year. Anglo-Dutch major Royal Dutch Shell moved up from sixth position to second, displacing US major Chevron to third. ConocoPhillips dropped one place from seventh to eighth.
Of all the Indian companies in the top 250, Power Grid Corp improved its overall ranking, rising from 232 {+n} {+d} in 2010 to 172 {+n} {+d} in 2011. Other significant moves include a rise of 21 places for power producer NHPC Ltd to 195 {+t} {+h} {+.}
Among electric utilities, Reliance Infrastructure Ltd gained 17 places to 215 {+t} {+h}.
“India’s enormous growth in energy demand has led to its rise as the emerging energy leader on the global front,” said Vandana Hari, Asia Editorial Director, Platts. “Although these represent the bright spots for financial performance in 2011, 2012 may prove more challenging for India’s power generators,” she added. richa.mishra
India seeks Israeli expertise in renewable energy sector
Mumbai: Almost 12 per cent of the energy generated in India is through renewable sources, comprising small hydro, bio-mass, wind and solar power. Now, the Government is keen that electricity produced from large hydro should be included in this category so that the share of renewables in the overall energy mix rises to about 31 per cent, stressed Gireesh Pradhan, Secretary, Ministry of New and Renewable Energy.
He was addressing officials from about 50 Israeli renewable energy companies and members of the Federation of Israeli Chambers of Commerce in Tel Aviv, on his maiden visit to the country.
At the meet, with representatives from both the Indian and Israeli Governments, India has sought Israel’s expertise in the renewable energy sector to meet its ambitious target of 30,000 MW of power over the next five years.
Stating that 40 per cent of the Indian population does not have access to energy, Pradhan spoke about India’s ambitious plans to generate another 30,000 MW of grid-connected projects by 2017, which would take the country to 55,000 MW from renewable sources of energy.
He was addressing officials from about 50 Israeli renewable energy companies and members of the Federation of Israeli Chambers of Commerce in Tel Aviv, on his maiden visit to the country.
At the meet, with representatives from both the Indian and Israeli Governments, India has sought Israel’s expertise in the renewable energy sector to meet its ambitious target of 30,000 MW of power over the next five years.
Stating that 40 per cent of the Indian population does not have access to energy, Pradhan spoke about India’s ambitious plans to generate another 30,000 MW of grid-connected projects by 2017, which would take the country to 55,000 MW from renewable sources of energy.
Saturday, October 13, 2012
Karnataka Bank signs MoU with management consultant KPMG
KPMG will provide hand holding support with its dedicated team positioned at the bank's headquarters here. High growth and superior quality is the mandate given to KPMG as the bank is aiming to clock an annual growth rate of 25% to 30%.
P Jayarama Bhat, managing director and CEO of the bank and Narayanan Ramaswamy, partner of KPMG Advisory Services Pvt Ltd, Chennai signed a memorandum of understanding to this effect. Under the project, the bank will comprehensively reengineer and reposition its marketing efforts, sector prioritization, delivery channels, employee reskilling, brand building with optimum utilization of all resources at its disposal.
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