NEW DELHI: Major aircraft manufacturer Boeing revised upwards its market outlook for India saying the country would require 1,150 planes worth $130 bn over the next two decades.
The company, which had earlier estimated that 1,000 planes worth about $100 bn would be required in the country in the same period, revised its outlook on the basis of the estimated growth rates of GDP and passenger traffic.
"Most of these aircraft will be twin-aisle or the Boeing 787-8 type which will be able to fly point-to-point to destinations in Europe and the US to Indian cities," Boeing India President Dinesh Keskar told reporters here.
In 2000, there were only two Indian carriers -- Air India and British Airways -- serving the India-London route with 24 weekly frequencies. This year, there are six airlines serving the sector with 104 frequencies.
Noting that the average seats per flight on these routes had declined from 412 in 2000 to 297 in 2010, he said this showed that the large aircraft like B-747s have been replaced by twin-aisle widebody aircraft like B-777s or Airbus A-330s.
Keskar said that there would no delay in the delivery of the first Boeing 787-8 or Dreamliner to Air India.
"The first Dreamliner will be delivered to Air India in the late first quarter or early second quarter of 2011. The delivery to Air India remains on track. This aircraft is now in the final assembly line," he said, adding that the 787 flight test programme was "progressing well".
Responding to questions, Keskar said India would become one of the "significant leasing markets" with a large chunk of planes being taken by Indian carriers on lease.
Roughly two-thirds of the Indian aviation market was now served by no-frill carriers like IndiGo, SpiceJet, JetLite, JetKonnect and Kingfisher Red. "This trend will continue over the next two decades".
The Boeing India chief said air travel in India, which was tied closely to the country's economic growth, would "largely recover by 2011".
Despite going through the most severe recession in the history of the aviation industry, the Indian airlines have been "one of the fastest to recover".
"We believe there will be a record 50 mn passengers this year if the trend continues", Keskar said, adding that Indian airlines carried a record 44 mn passengers in 2009.
Success in my Habit
Tuesday, August 3, 2010
Godrej to invest Rs 300-cr in chemical, animal feed businesses
On back of a healthy growth in the first quarter of the current fiscal, Godrej Industries Limited (GIL) is planning a major expansion in its agri and chemical businesses at an investment of around Rs 300-crore, a top company official said.
Godrej Industries has earmaked Rs 230-crore for setting up a new chemical manufacturing unit at Ambernath, near Mumbai. Another Rs 75-crore will be invested in its animal-feeds arm for expansion, he said.
"The last quarter has been very positive for Godrej Industries--the chemical and agri-feeds subsidiaries have posted strong growths. We are looking at setting up 4-5 animal feed units at an investment of Rs 10-15-crore each in Maharashtra, UP and south India," GIL's Managing Director, Nadir Godrej, told media today.
However, he did not divulge any further details. Godrej currently has 6-7 company-owned units besides operating 20-30 third party units. The total production capacity is around 1-million MTPA.
The upcoming units will add another 1,00,000 MTPA to the existing ones, Godrej said.
"Animal feed contributes around 50 per cent of the total revenues of Godrej Agrovet (Rs 1,500-crore) and we expect a 15-20 per cent growth here this fiscal," Godrej added.
Godrej Industries has earmaked Rs 230-crore for setting up a new chemical manufacturing unit at Ambernath, near Mumbai. Another Rs 75-crore will be invested in its animal-feeds arm for expansion, he said.
"The last quarter has been very positive for Godrej Industries--the chemical and agri-feeds subsidiaries have posted strong growths. We are looking at setting up 4-5 animal feed units at an investment of Rs 10-15-crore each in Maharashtra, UP and south India," GIL's Managing Director, Nadir Godrej, told media today.
However, he did not divulge any further details. Godrej currently has 6-7 company-owned units besides operating 20-30 third party units. The total production capacity is around 1-million MTPA.
The upcoming units will add another 1,00,000 MTPA to the existing ones, Godrej said.
"Animal feed contributes around 50 per cent of the total revenues of Godrej Agrovet (Rs 1,500-crore) and we expect a 15-20 per cent growth here this fiscal," Godrej added.
Blue Star expects Rs 22-bn orders in FY11
MUMBAI: Refrigeration and cooling systems manufacturer Blue Star Ltd hopes to book orders worth Rs 22 billion this fiscal, a top official said.
The orders will be under its electromechanical projects business, Vir Advani, executive director, told Reuters in an interview on Tuesday.
"About 600 crores (6 billion) rupees of order inflow this year will be from relatively new markets under the electromechanical projects business." "The core business under electromechanical projects, which is commercial buildings, will continue to be by far the largest. That somewhere in terms of inflow will be around 1,600 crores (16 billion) rupees," he added.
The company operates under three business segments - electromechanical, which includes projects and equipments; cooling products; and professional electronics and industrial systems. The firm orderbook at June-end stood at 19 billion rupees.
The orders will be under its electromechanical projects business, Vir Advani, executive director, told Reuters in an interview on Tuesday.
"About 600 crores (6 billion) rupees of order inflow this year will be from relatively new markets under the electromechanical projects business." "The core business under electromechanical projects, which is commercial buildings, will continue to be by far the largest. That somewhere in terms of inflow will be around 1,600 crores (16 billion) rupees," he added.
The company operates under three business segments - electromechanical, which includes projects and equipments; cooling products; and professional electronics and industrial systems. The firm orderbook at June-end stood at 19 billion rupees.
Tata Capital, Japan's Mizuho to set up PE fund
MUMBAI: Tata Capital, a unit of diversified Indian conglomerate Tata Group, said on Tuesday it will set up a private equity fund in Singapore
jointly with Japan's Mizuho Securities.
Further details were not immediately available. In July, Tata Capital had said it plans to raise $1 billion for private equity funds by December 2011.
Tata Capital's offerings include consumer and corporate finance, equity research, investment banking and private equity, according to the company's website.
jointly with Japan's Mizuho Securities.
Further details were not immediately available. In July, Tata Capital had said it plans to raise $1 billion for private equity funds by December 2011.
Tata Capital's offerings include consumer and corporate finance, equity research, investment banking and private equity, according to the company's website.
Employees at Indian Volvo bus plant strike over pay
STOCKHOLM: About 600 employees of a Volvo bus plant in India are striking for better pay and the return to work of four colleagues suspended following a dispute at the plant, a spokesman for the Swedish group said on Tuesday.
The strike has lasted for a week, Per-Martin Johansson told media, but a labour conflict which has slowed down production has been going on for about three months, he added.
"The union has asked for higher wages and the return to work of the four employees who were suspended," Johansson said.
Four of the plant's employees were suspended following a dispute at the plant in April, during which they allegedly physically assaulted a manager.
During the three month labour conflict some employees have worked less or not at all in protest.
The conflict has set the plant's production pace back 60 buses, Johansson said. The factory rolled out 535 buses last year.
Johansson would not comment on the cost of the labour conflict to the Swedish company, but Indian financial newspaper Business Standard said it had cost "close to 50 crore rupees" or about eight million euros or 10 million dollars to Volvo.
Volvo Group -- which makes trucks, buses and boat and aircraft equipment -- does not include the Volvo Cars brand.
Volvo Cars was sold in 1999 to US auto giant Ford, which in turn completed the brand's sale to China's Geely on Monday.
The strike has lasted for a week, Per-Martin Johansson told media, but a labour conflict which has slowed down production has been going on for about three months, he added.
"The union has asked for higher wages and the return to work of the four employees who were suspended," Johansson said.
Four of the plant's employees were suspended following a dispute at the plant in April, during which they allegedly physically assaulted a manager.
During the three month labour conflict some employees have worked less or not at all in protest.
The conflict has set the plant's production pace back 60 buses, Johansson said. The factory rolled out 535 buses last year.
Johansson would not comment on the cost of the labour conflict to the Swedish company, but Indian financial newspaper Business Standard said it had cost "close to 50 crore rupees" or about eight million euros or 10 million dollars to Volvo.
Volvo Group -- which makes trucks, buses and boat and aircraft equipment -- does not include the Volvo Cars brand.
Volvo Cars was sold in 1999 to US auto giant Ford, which in turn completed the brand's sale to China's Geely on Monday.
BP sells Colombian business for $1.9 billion
LONDON: British oil giant BP said on Tuesday it will sell its Colombian business for a total of $1.9 billion (1.4 billion euros) to national oil company Ecopetrol and Talisman of Canada.
The divestment is part of BP's plans to sell off up to $30 billion of assets, as it faces soaring costs from the Gulf of Mexico oil spill disaster.
The news comes just one week after BP's vilified chief executive Tony Hayward resigned in the wake of a record second-quarter loss of $16.9 billion dollars - the biggest quarterly loss in British corporate history.
"BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia's national oil company (51 percent), and Talisman of Canada (49 percent)," it said in a statement.
"The two companies will pay BP a total of $1.9 billion in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia."
The transaction, which is subject to regulatory and other approvals, is expected to complete by the end of 2010.
The divestment is part of BP's plans to sell off up to $30 billion of assets, as it faces soaring costs from the Gulf of Mexico oil spill disaster.
The news comes just one week after BP's vilified chief executive Tony Hayward resigned in the wake of a record second-quarter loss of $16.9 billion dollars - the biggest quarterly loss in British corporate history.
"BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia's national oil company (51 percent), and Talisman of Canada (49 percent)," it said in a statement.
"The two companies will pay BP a total of $1.9 billion in cash ... for 100 per cent of the shares in BP Exploration Company (Colombia) Limited, the wholly-owned BP subsidiary company that holds BP's oil and gas exploration, production and transportation interests in Colombia."
The transaction, which is subject to regulatory and other approvals, is expected to complete by the end of 2010.
Thursday, July 29, 2010
ONGC Q1 net falls 24.5 pct, lags estimates
MUMBAI (Reuters) - State-run explorer Oil & Natural Gas Corp reported a 24.5 percent fall in first-quarter net profit, lagging estimates, as a rise in crude oil prices meant it had to make higher subsidy payouts.
ONGC (ONGC.NS : 1246.55 -13), which is looking to buy BP's assets in Vietnam, posted April-June net profit of 36.61 billion rupees ($785.6 million), down from 48.48 billion rupees a year earlier.
A Reuters poll had forecast net profit of 42.6 billion rupees.
ONGC is required to partially subsidise the sale of fuel to state-run retailers, who sell fuel at government-set, below-market prices, which affects its profit.
The government recently deregulated gasoline prices and has said it would free diesel prices as well, but clarity on the subsidy-sharing mechanism for other fuels has still not emerged.
ONGC and state-backed PetroVietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project, Oil Secretary S. Sundareshan said on Tuesday.
ONGC shares fell 1.1 percent to 1,242.50 rupees ahead of the results, while the broader Mumbai market gained 0.2 percent
ONGC (ONGC.NS : 1246.55 -13), which is looking to buy BP's assets in Vietnam, posted April-June net profit of 36.61 billion rupees ($785.6 million), down from 48.48 billion rupees a year earlier.
A Reuters poll had forecast net profit of 42.6 billion rupees.
ONGC is required to partially subsidise the sale of fuel to state-run retailers, who sell fuel at government-set, below-market prices, which affects its profit.
The government recently deregulated gasoline prices and has said it would free diesel prices as well, but clarity on the subsidy-sharing mechanism for other fuels has still not emerged.
ONGC and state-backed PetroVietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project, Oil Secretary S. Sundareshan said on Tuesday.
ONGC shares fell 1.1 percent to 1,242.50 rupees ahead of the results, while the broader Mumbai market gained 0.2 percent
Reliance, Essar eye BP's Africa retail ops - sources
NEW DELHI/MUMBAI (Reuters) - BP Plc is in talks with Reliance Industries (RELIANCE.NS : 1010.15 -11.1) and Essar Group to sell its African retail assets that could be worth as much as $500 million, four sources with direct knowledge of the matter told Reuters on Wednesday.
It was not immediately known whether BP was showing the African assets to other potential buyers.
BP plans to sell $30 billion of assets over the next 18 months to cover costs related to the worst oil spill in U.S. history.
Reliance Industries, India's largest listed conglomerate, declined to comment, while a spokesman for steel-to-shipping conglomerate Essar said "We don't comment on speculations."
BP intends to sell its marketing business in Namibia, Malawi, Tanzania and Botswana and focus on South Africa and Mozambique.
Billionaire Mukesh Ambani-controlled Reliance, whose interests include petrochemicals, refining, oil and gas exploration, and retail, is expanding its presence overseas by investing in new areas such as shale gas.
The Essar Group, controlled by billionaire brothers Shashi and Ravi Ruia, is also nursing ambitious expansion plans and recently raised $1.95 billion through an initial public offering of its energy and power businesses in London.
In September 2007, Reliance acquired Gulf Africa Petroleum Corp (GAPCO), an east African oil retailer, to gain access to the rapidly growing economies of the region and a growing demand for petroleum products.
"Reliance is looking into this opportunity as it has a presence in the African continent through GAPCO," one of the sources said.
All the sources declined to be named as they were not authorised to speak to the media.
BP's planned asset sales are aimed at helping it pay for its liabilities and create a leaner company with the potential for higher growth. The company agreed to a $7 billion sale of oil and gas fields to Apache Corp last week.
State-run explorer Oil and Natural Gas Corp and state-backed Petrovietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project in Vietnam, India's oil secretary, S. Sundareshan said on Tuesday.
It was not immediately known whether BP was showing the African assets to other potential buyers.
BP plans to sell $30 billion of assets over the next 18 months to cover costs related to the worst oil spill in U.S. history.
Reliance Industries, India's largest listed conglomerate, declined to comment, while a spokesman for steel-to-shipping conglomerate Essar said "We don't comment on speculations."
BP intends to sell its marketing business in Namibia, Malawi, Tanzania and Botswana and focus on South Africa and Mozambique.
Billionaire Mukesh Ambani-controlled Reliance, whose interests include petrochemicals, refining, oil and gas exploration, and retail, is expanding its presence overseas by investing in new areas such as shale gas.
The Essar Group, controlled by billionaire brothers Shashi and Ravi Ruia, is also nursing ambitious expansion plans and recently raised $1.95 billion through an initial public offering of its energy and power businesses in London.
In September 2007, Reliance acquired Gulf Africa Petroleum Corp (GAPCO), an east African oil retailer, to gain access to the rapidly growing economies of the region and a growing demand for petroleum products.
"Reliance is looking into this opportunity as it has a presence in the African continent through GAPCO," one of the sources said.
All the sources declined to be named as they were not authorised to speak to the media.
BP's planned asset sales are aimed at helping it pay for its liabilities and create a leaner company with the potential for higher growth. The company agreed to a $7 billion sale of oil and gas fields to Apache Corp last week.
State-run explorer Oil and Natural Gas Corp and state-backed Petrovietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project in Vietnam, India's oil secretary, S. Sundareshan said on Tuesday.
Wednesday, July 28, 2010
BHEL, GE unit sign pact for oil, gas compressors
New Delhi: Bharat Heavy Electricals Ltd (BHEL) and a unit of GE have signed a 10-year licensing pact to manufacture oil and gas compressors. GE's range of centrifugal compressors will be manufactured under license at BHEL's production site in Hyderabad, for sale in India and South Asia, GE said in a statement. It did not disclose financial details of the transaction.
The agreement for the compressor units was signed through GE Oil & Gas' Italian entity Nuovo Pignone. The units are vital to infrastructure development projects, including oil and gas production and transportation, refinery and petrochemical industry applications, and fuel gas boosting.
The technical scope of the licensing agreement provides for the licensing of GE's advanced range of centrifugal compressors, specifically several models of horizontally- and vertically-split, pipeline and integrally gear compressors.
Based on a previous licensing agreement in place with GE Energy since 1986, BHEL is already successfully partnering on the manufacture and sale of GE gas turbines for power and water applications. Wednesday's agreement also builds on a successful licensing arrangement for similar units held between Nuovo Pignone and BHEL from 1971 to 1992, the statement said.
The agreement for the compressor units was signed through GE Oil & Gas' Italian entity Nuovo Pignone. The units are vital to infrastructure development projects, including oil and gas production and transportation, refinery and petrochemical industry applications, and fuel gas boosting.
The technical scope of the licensing agreement provides for the licensing of GE's advanced range of centrifugal compressors, specifically several models of horizontally- and vertically-split, pipeline and integrally gear compressors.
Based on a previous licensing agreement in place with GE Energy since 1986, BHEL is already successfully partnering on the manufacture and sale of GE gas turbines for power and water applications. Wednesday's agreement also builds on a successful licensing arrangement for similar units held between Nuovo Pignone and BHEL from 1971 to 1992, the statement said.
French investments in India to touch Rs 60,000 cr by 2012
Chennai: Investments by French companies in India are expected to touch Euro 10 billion (around Rs 60,000 crore) by 2012, and would be focused on automobile, energy and environment sectors among others.
Speaking to Business Standard, Jean Leviol, minister counsellor for economic, trade and financial affairs at the French Embassy in India, said that there were about 750 permanent French establishments in India, employing nearly 2,00,000 Indians, a fifth of them as engineers in French IT companies. The number was around 50,000 in 2005.
He said, “between 2008 and 2012, we expected French companies to invest Euro 10 billion. It is very much on track.”
On the other hand, Indian companies in France had invested around Euro 500 million (around Rs 2,975 crore) between 2005 and 2010, he said. Currently 90 Indian companies are operating in France.
These investments were mainly driven by IT majors and pharmaceutical companies, “but now Indian companies are showing interest in mechanical engineering, plastic, medical devices and forging”, he added.
Willing to help UID project
The French government is willing to share its experience and expertise for India’s Unique Identification Number (UID) project. Jerome Bonnafont, Ambassador of France, said that “we would be very happy to be partners in this [UID] project, since we have the experience of implementing a similar project in France”.
In France, he said, it had begun as a Personal Identity Number system began in 1941 to organise recruitment of men in the army and subsequently evolved as an important tool for the social security among other uses.
Speaking to Business Standard, Jean Leviol, minister counsellor for economic, trade and financial affairs at the French Embassy in India, said that there were about 750 permanent French establishments in India, employing nearly 2,00,000 Indians, a fifth of them as engineers in French IT companies. The number was around 50,000 in 2005.
He said, “between 2008 and 2012, we expected French companies to invest Euro 10 billion. It is very much on track.”
On the other hand, Indian companies in France had invested around Euro 500 million (around Rs 2,975 crore) between 2005 and 2010, he said. Currently 90 Indian companies are operating in France.
These investments were mainly driven by IT majors and pharmaceutical companies, “but now Indian companies are showing interest in mechanical engineering, plastic, medical devices and forging”, he added.
Willing to help UID project
The French government is willing to share its experience and expertise for India’s Unique Identification Number (UID) project. Jerome Bonnafont, Ambassador of France, said that “we would be very happy to be partners in this [UID] project, since we have the experience of implementing a similar project in France”.
In France, he said, it had begun as a Personal Identity Number system began in 1941 to organise recruitment of men in the army and subsequently evolved as an important tool for the social security among other uses.
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