New Delhi: Exports from India have increased by 26.8 per cent year-on-year (y-o-y) to touch US$ 18.9 billion in November 2010, urging the Government to exude confidence that overall shipments in 2010-11 may touch US$ 215 billion.
For the April-November 2010 period, exports have grown by 26.7 per cent to US$ 140.3 billion, while imports clocked US$ 222 billion, expanding 24 per cent.
“Exports are doing pretty well... At this rate, four months from now, you are looking at anywhere between $210 billion and 215 billion,” according to Mr Rahul Khullar, the Commerce Secretary. Earlier, the government had set an export target of US$ 200 billion for 2010-11, against the shipments of US$ 179 billion in 2009-10.
Success in my Habit
Tuesday, December 14, 2010
Monday, December 6, 2010
JSW Energy to buy Canadian firm for C$422 m
Mumbai: JSW Energy is to acquire Toronto-listed CIC Energy for about Canadian $422 million.
CIC is developing the Mmamabula Energy Complex at its Mmamabula coalfield in south-eastern Botswana.
There are plans to develop coal mines, set up power plants and convert coal to hydrocarbon there.
The deal is expected to be completed by the last quarter of this fiscal.
Coal reserves
Mr Sajjan Jindal, Chairman, JSW Energy, said, “CIC has approximately 2.6 billion tonnes of coal reserves in the Mmamabula region which are NI 43-101 compliant. The reserves have good quality thermal coal with low sulphur content that is adequate to meet all the project requirements of JSW Energy.”
Coal production in the fields is expected to commence in three to five years.
Mr N.K. Jain, Vice-Chairman, JSW Energy, said: “The reserves can be exploited with an exportable surplus of up to 20 million tonnes per annum over the next 40 years. The reserves can also meet the requirement to set up power plants in Botswana with a capacity of up to 2,000 MW.”
The acquisition will be effected by a step-down subsidiary of JSW Energy.
In May, JSW Steel acquired coking coal mines in the US to tie up supplies for its steel plants, besides the acquisition of coal assets by JSW Energy.
JSW Energy has an operational capacity of 1,430 MW. Additionally 1,710 MW of generating capacity is in an advanced stage of completion. The company is targeting an aggregate generating capacity of 12,070 MW by 2015-16.
CIC is developing the Mmamabula Energy Complex at its Mmamabula coalfield in south-eastern Botswana.
There are plans to develop coal mines, set up power plants and convert coal to hydrocarbon there.
The deal is expected to be completed by the last quarter of this fiscal.
Coal reserves
Mr Sajjan Jindal, Chairman, JSW Energy, said, “CIC has approximately 2.6 billion tonnes of coal reserves in the Mmamabula region which are NI 43-101 compliant. The reserves have good quality thermal coal with low sulphur content that is adequate to meet all the project requirements of JSW Energy.”
Coal production in the fields is expected to commence in three to five years.
Mr N.K. Jain, Vice-Chairman, JSW Energy, said: “The reserves can be exploited with an exportable surplus of up to 20 million tonnes per annum over the next 40 years. The reserves can also meet the requirement to set up power plants in Botswana with a capacity of up to 2,000 MW.”
The acquisition will be effected by a step-down subsidiary of JSW Energy.
In May, JSW Steel acquired coking coal mines in the US to tie up supplies for its steel plants, besides the acquisition of coal assets by JSW Energy.
JSW Energy has an operational capacity of 1,430 MW. Additionally 1,710 MW of generating capacity is in an advanced stage of completion. The company is targeting an aggregate generating capacity of 12,070 MW by 2015-16.
Tata taps MIT to light up low-income houses
Leslie D'Monte/ Cambridge: The Tata group is investing millions of dollars in Sun Catalytix — an energy storage and renewable fuels company — founded by a Massachusetts Institute of Technology (MIT) professor, Daniel Nocera. The aim is to introduce a low-cost solar contraption to power homes for the poor, primarily in developing countries like India.
The Tata group is well known for its bias towards low-cost innovations like the Nano car and Swach water filter.
Sun Catalytix’s prototype can split hydrogen from any source of water, be it river water, sea water or even human waste. Once the water molecules are split into hydrogen and oxygen, the hydrogen powers fuel cells. Built at a cost of around $20 (around '920), it is expected to hit the market in 18 months. “We have the capability to power a household with just two bottles of water from any source,” claims Nocera, who is also director of MIT’s Solar Revolutions Project and the ENI Solar Frontiers Centre.
The reasoning is simple. Solar power, up until now, has been a daytime-only energy source. But storing extra solar energy for use when the sun sets is expensive. Sun Catalytix also believes batteries have a limitation when it comes to storing electrical energy. The company’s prototype, hence, has taken a cue from nature — the process of photosynthesis — whereby plants and bacteria use energy from sunlight to produce sugar, which cellular respiration converts into adenosine tri-phosphate, or ATP, the ‘fuel’ used by all living things.
It was around two years ago that Nocera and Matthew Kanan, a post-doctoral fellow in Nocera’s lab, had announced the details of the experiment. They have since refined it further. “By eliminating expensive precious metals and substantially reducing costs, our technology promises to enable the conversion of electrical, solar or wind energy into storable energy at low cost,” says Nocera.
The contraption, according to Prof Nocera, has advantages over current electrolysers, which split water with electricity and are often used for industrial purposes. But they are not suited for artificial photosynthesis because they are very expensive (around $12,000 per Kw) “and require a highly basic (non-benign) environment that has little to do with the conditions under which photosynthesis operates”.
Tata Sons Chairman Ratan Tata is understood to be taking a personal interest in the project, while simultaneously providing personnel from his group companies to make this project successful. The Tata group has a joint venture with BP Solar, Tata BP Solar, which is one of the largest solar companies in Asia.
Ralf Speth, CEO of Jaguar Land Rover (a Tata company), is on the board of Sun Catalytix. While the Tata group has officially pumped $9.5 million into the company, people with knowledge of the development say the investment is much more and that Ratan Tata is a co-owner. Other investors include Polaris Venture Partners. Amir Nashat is acting CEO of Sun Catalytix.
In July 2009, the government unveiled a $19-billion plan to produce 20 Gw of solar power by 2020, wherein solar-powered equipment and applications would be mandatory in all government buildings, including hospitals and hotels. Further, in the 2010-11 Budget, the government had announced an allocation of $227 million towards the Jawaharlal Nehru National Solar Mission and the establishment of a Clean Energy Fund.
Currently, though, solar power is much more expensive than power generated by other sources of energy like wind, coal and water. The government, therefore, has to subsidise solar power.
Meanwhile, other companies like Amyris of the US are also developing genetic-engineering technologies that change the way microbes process sugar, turning them into “biorefineries” that could provide alternatives to products derived from petroleum.
The Tata group is well known for its bias towards low-cost innovations like the Nano car and Swach water filter.
Sun Catalytix’s prototype can split hydrogen from any source of water, be it river water, sea water or even human waste. Once the water molecules are split into hydrogen and oxygen, the hydrogen powers fuel cells. Built at a cost of around $20 (around '920), it is expected to hit the market in 18 months. “We have the capability to power a household with just two bottles of water from any source,” claims Nocera, who is also director of MIT’s Solar Revolutions Project and the ENI Solar Frontiers Centre.
The reasoning is simple. Solar power, up until now, has been a daytime-only energy source. But storing extra solar energy for use when the sun sets is expensive. Sun Catalytix also believes batteries have a limitation when it comes to storing electrical energy. The company’s prototype, hence, has taken a cue from nature — the process of photosynthesis — whereby plants and bacteria use energy from sunlight to produce sugar, which cellular respiration converts into adenosine tri-phosphate, or ATP, the ‘fuel’ used by all living things.
It was around two years ago that Nocera and Matthew Kanan, a post-doctoral fellow in Nocera’s lab, had announced the details of the experiment. They have since refined it further. “By eliminating expensive precious metals and substantially reducing costs, our technology promises to enable the conversion of electrical, solar or wind energy into storable energy at low cost,” says Nocera.
The contraption, according to Prof Nocera, has advantages over current electrolysers, which split water with electricity and are often used for industrial purposes. But they are not suited for artificial photosynthesis because they are very expensive (around $12,000 per Kw) “and require a highly basic (non-benign) environment that has little to do with the conditions under which photosynthesis operates”.
Tata Sons Chairman Ratan Tata is understood to be taking a personal interest in the project, while simultaneously providing personnel from his group companies to make this project successful. The Tata group has a joint venture with BP Solar, Tata BP Solar, which is one of the largest solar companies in Asia.
Ralf Speth, CEO of Jaguar Land Rover (a Tata company), is on the board of Sun Catalytix. While the Tata group has officially pumped $9.5 million into the company, people with knowledge of the development say the investment is much more and that Ratan Tata is a co-owner. Other investors include Polaris Venture Partners. Amir Nashat is acting CEO of Sun Catalytix.
In July 2009, the government unveiled a $19-billion plan to produce 20 Gw of solar power by 2020, wherein solar-powered equipment and applications would be mandatory in all government buildings, including hospitals and hotels. Further, in the 2010-11 Budget, the government had announced an allocation of $227 million towards the Jawaharlal Nehru National Solar Mission and the establishment of a Clean Energy Fund.
Currently, though, solar power is much more expensive than power generated by other sources of energy like wind, coal and water. The government, therefore, has to subsidise solar power.
Meanwhile, other companies like Amyris of the US are also developing genetic-engineering technologies that change the way microbes process sugar, turning them into “biorefineries” that could provide alternatives to products derived from petroleum.
India to start power trade with Sri Lanka by 2014
New Delhi: The two countries are likely to sign an MoU for the Rs 2,500-crore project.
The government’s initiative to have trading of electricity with Sri Lanka is likely to bear fruit by mid-2014, with the commissioning of a high capacity power transmission link between the two countries. Power Grid Corporation of India (PGCIL), the country’s largest electricity transmission utility and the implementing agency for the project from the Indian side, is likely to sign a memorandum of understanding (MoU) for developing the Rs 2,500-crore project with the neighbouring country by next month.
The 285-kilometre India-Sri Lanka power link, which includes submarine cables over 50 km, will enable the two countries to trade their surplus power with each other, thereby offering a cheaper option to bridge their power generation deficits and also manage peak demand. “We are going to sign the MoU with the Sri Lankan side for the project in December. After this, it will take us six months to start work on the development of the project. We will complete the project within three years,” Power Grid Chairman and Managing Director S K Chaturvedi told Business Standard.
While India generally reels under an overall 12 per cent peak power deficit currently, minute electricity surplus in eastern and southern grids become available seasonally. “With the commissioning of the Krishnapatnam Ultra Mega Power Project (UMPP) in Andhra Pradesh, tradeble surplus would become available,” Chaturvedi said.
UMPPs are large-sized projects being developed by the private sector. The Krishnapatnam UMPP is being developed by Anil Dhirubhai Ambani-owned Reliance Power and is likely to be commissioned by 2015. The link will help Sri Lanka reduce its use of expensive fuels and import cheaper power from India’s surplus. For India, the link will help open a new market for its projected surplus of power.
The subsea line would initially have a capacity of transmitting 500 Mw, according to Power Grid’s feasibility report. “Later, the power flow could be ramped up to 1,000 Mw, beginning 2016, when the power generation capacities in the two countries improve, with surplus availability especially in the Indian southern grid,” Chaturvedi said.
The completion of the proposed undersea transmission link, however, would also depend on the commissioning of NTPC’s 500 Mw imported coal-based power project being planned to be set up at Trincomalee in Sri Lanka. The undersea project would be useful in evacuation of power from the plant.
“The transmission project is linked to the Trincomalee plant. It takes at least four-five years to set up a coal-based project, while my project takes only three years for completion,” Chaturvedi said. While the work on NTPC’s project has not begun, an official from NTPC said the construction work would begin as soon as all the necessary approvals were obtained.
Powergrid and Ceylon Electricity Board (CEB), the largest electricity company of Sri Lanka, will lay down cables under the Gulf of Mannar between Rameswaram in Tamil Nadu and Talaimannar in Sri Lanka.
Globally, transnational undersea power transmission lines have been laid so far only between the UK and the France for transferring 2,000 Mw of electricity. The Philippines plans to set up similar transmission links to connect its islands through the undersea electricity network.
The government’s initiative to have trading of electricity with Sri Lanka is likely to bear fruit by mid-2014, with the commissioning of a high capacity power transmission link between the two countries. Power Grid Corporation of India (PGCIL), the country’s largest electricity transmission utility and the implementing agency for the project from the Indian side, is likely to sign a memorandum of understanding (MoU) for developing the Rs 2,500-crore project with the neighbouring country by next month.
The 285-kilometre India-Sri Lanka power link, which includes submarine cables over 50 km, will enable the two countries to trade their surplus power with each other, thereby offering a cheaper option to bridge their power generation deficits and also manage peak demand. “We are going to sign the MoU with the Sri Lankan side for the project in December. After this, it will take us six months to start work on the development of the project. We will complete the project within three years,” Power Grid Chairman and Managing Director S K Chaturvedi told Business Standard.
While India generally reels under an overall 12 per cent peak power deficit currently, minute electricity surplus in eastern and southern grids become available seasonally. “With the commissioning of the Krishnapatnam Ultra Mega Power Project (UMPP) in Andhra Pradesh, tradeble surplus would become available,” Chaturvedi said.
UMPPs are large-sized projects being developed by the private sector. The Krishnapatnam UMPP is being developed by Anil Dhirubhai Ambani-owned Reliance Power and is likely to be commissioned by 2015. The link will help Sri Lanka reduce its use of expensive fuels and import cheaper power from India’s surplus. For India, the link will help open a new market for its projected surplus of power.
The subsea line would initially have a capacity of transmitting 500 Mw, according to Power Grid’s feasibility report. “Later, the power flow could be ramped up to 1,000 Mw, beginning 2016, when the power generation capacities in the two countries improve, with surplus availability especially in the Indian southern grid,” Chaturvedi said.
The completion of the proposed undersea transmission link, however, would also depend on the commissioning of NTPC’s 500 Mw imported coal-based power project being planned to be set up at Trincomalee in Sri Lanka. The undersea project would be useful in evacuation of power from the plant.
“The transmission project is linked to the Trincomalee plant. It takes at least four-five years to set up a coal-based project, while my project takes only three years for completion,” Chaturvedi said. While the work on NTPC’s project has not begun, an official from NTPC said the construction work would begin as soon as all the necessary approvals were obtained.
Powergrid and Ceylon Electricity Board (CEB), the largest electricity company of Sri Lanka, will lay down cables under the Gulf of Mannar between Rameswaram in Tamil Nadu and Talaimannar in Sri Lanka.
Globally, transnational undersea power transmission lines have been laid so far only between the UK and the France for transferring 2,000 Mw of electricity. The Philippines plans to set up similar transmission links to connect its islands through the undersea electricity network.
IIFT to set up institute in Africa
Kolkata: The Indian Institute of Foreign Trade (IIFT) will soon have its foreign counterpart with an “IIFT type institute” coming up in one of the “less developed nations” in Africa, Mr K.T. Chacko, Director, IIFT, said here on Wednesday.
The announcement regarding the location of the institute and other details will be made by the Prime Minister, Dr Manmohan Singh, within the coming months, he added.
Mr Chacko was speaking on the sidelines of the National Trade and Logistics Symposium organised by the IIFT here on Wednesday.
Refusing to call it the IIFT's African campus, the director said that according to the prior commitments made by the Prime Minister an “IIFT type institute” will come up in Africa. The African institute will help in developing the managerial capabilities and knowledge base in the continent.
The decision has been taken keeping in mind Africa's immense growth potential and trade benefits in the coming years.
Initially the Indian government will take an active part in setting up the institute and providing infrastructure facilities such as hostel and library. Faculty will also be provided by the IIFT.
“After the initial years, say around five to 10 years, we will hand over the management and running of the institute to the respective government in the country,” Mr Chacko said.
student intake
Mr Chacko added that the IIFT was planning to take in around 200 students for its Kolkata campus. This will be more than the 180 seats that it has in its Delhi one.
At present, IIFT's Kolkata campus has a capacity of 60 students and operates from rented premises in Sector V in Salt Lake, in North 24 Parganas. The institute has been allotted a 10 acre plot of land, seven acres initially and three later, off Eastern Metropolitan Bypass in Kolkata in 2006. Documentation and obtaining clearances had delayed the setting up of the new campus.
The institute expects to start construction work on its Rs 100-crore second campus within the next month. Ramky Infrastructure will carry out construction work on behalf of the institute.
The announcement regarding the location of the institute and other details will be made by the Prime Minister, Dr Manmohan Singh, within the coming months, he added.
Mr Chacko was speaking on the sidelines of the National Trade and Logistics Symposium organised by the IIFT here on Wednesday.
Refusing to call it the IIFT's African campus, the director said that according to the prior commitments made by the Prime Minister an “IIFT type institute” will come up in Africa. The African institute will help in developing the managerial capabilities and knowledge base in the continent.
The decision has been taken keeping in mind Africa's immense growth potential and trade benefits in the coming years.
Initially the Indian government will take an active part in setting up the institute and providing infrastructure facilities such as hostel and library. Faculty will also be provided by the IIFT.
“After the initial years, say around five to 10 years, we will hand over the management and running of the institute to the respective government in the country,” Mr Chacko said.
student intake
Mr Chacko added that the IIFT was planning to take in around 200 students for its Kolkata campus. This will be more than the 180 seats that it has in its Delhi one.
At present, IIFT's Kolkata campus has a capacity of 60 students and operates from rented premises in Sector V in Salt Lake, in North 24 Parganas. The institute has been allotted a 10 acre plot of land, seven acres initially and three later, off Eastern Metropolitan Bypass in Kolkata in 2006. Documentation and obtaining clearances had delayed the setting up of the new campus.
The institute expects to start construction work on its Rs 100-crore second campus within the next month. Ramky Infrastructure will carry out construction work on behalf of the institute.
Bajaj, KTM, Kawasaki plan global pact
Mumbai: The alliance will lead to products suitable to the three companies’ strategy and brand.
In an attempt to give its international plans a major fillip, Bajaj Auto, the country's second-largest motorcycle maker, is working towards bringing the technological prowess of Austrian bike maker KTM and Kawasaki of Japan together to form a global alliance.
The three companies are discussing the matter, which would lead to cost-effective manufacturing programmes for engines, platforms and components, and also a global distribution and marketing set-up.
Developed platforms can be used by the three companies to create different products suitable to their strategy and brand. Platform sharing is more common in car and sport utility vehicle industry, where some companies have multiple brands.
Pune-based Bajaj Auto has a 38.09 per cent stake in KTM, which specialises in making stylish street and off-road bikes. The two companies are in the process of developing a range of high-performance engines to serve domestic and international markets.
This new range of low- and high-capacity engines can be tapped by Kawasaki, one of the world's largest bike makers and a long-time technical partner of Bajaj Auto.
Such a multiple use of similar engines would ease the cost of manufacturing in the long run, said Rajiv Bajaj, managing director of Bajaj Auto.
"Every component is not common, but the basics, like crank cases, shafts and gears, are very similar. So, the trick is one must have scale at the back end, but one must also have specialisation in the front. So, at the front end one, we will sell a (Kawasaki) Ninja, a (KTM) Duke and a (Bajaj) Pulsar, but at the back end, they may have lot of commonality," Bajaj said.
KTM is preparing to launch Duke, a 125cc motorcycle, next year in India. The engine of the bike, likely to be priced above Rs 1 lakh, is developed by KTM and Bajaj.
"With the same people, same knowledge, same standards, they will be making those common parts," Bajaj stated.
Kawasaki - which has so far maintained a low profile in the Indian market, following increasing research and development (R&D) independence of Bajaj Auto - recently formed a subsidiary in India due to increasing demand for its Ninja 250R motorcycle.
The Japanese auto company is studying other emerging markets like China, Southeast Asia and Latin America, to carry over its alliance with Bajaj Auto.
Kawasaki is importing automotive components using the supplier base of Bajaj Auto for models sold in other parts of Asia and aims to start parts supplies to developed market of the United States and Europe.
While Bajaj Auto is helping Kawasaki by selling the latter's models in India through its own dealers, Kawasaki will provide the same assistance to Bajaj Auto in far away international markets. KTM and Kawasaki's products will come out of Bajaj Auto's Chakan plant in Pune.
At present, Kawasaki sells Bajaj bikes in countries like Columbia and the Philippines, and is exploring newer market for further expansion. Likewise, Bajaj plans to use KTM's extensive dealer network in Europe and the US to make a foray with its own range of two-wheelers.
In an attempt to give its international plans a major fillip, Bajaj Auto, the country's second-largest motorcycle maker, is working towards bringing the technological prowess of Austrian bike maker KTM and Kawasaki of Japan together to form a global alliance.
The three companies are discussing the matter, which would lead to cost-effective manufacturing programmes for engines, platforms and components, and also a global distribution and marketing set-up.
Developed platforms can be used by the three companies to create different products suitable to their strategy and brand. Platform sharing is more common in car and sport utility vehicle industry, where some companies have multiple brands.
Pune-based Bajaj Auto has a 38.09 per cent stake in KTM, which specialises in making stylish street and off-road bikes. The two companies are in the process of developing a range of high-performance engines to serve domestic and international markets.
This new range of low- and high-capacity engines can be tapped by Kawasaki, one of the world's largest bike makers and a long-time technical partner of Bajaj Auto.
Such a multiple use of similar engines would ease the cost of manufacturing in the long run, said Rajiv Bajaj, managing director of Bajaj Auto.
"Every component is not common, but the basics, like crank cases, shafts and gears, are very similar. So, the trick is one must have scale at the back end, but one must also have specialisation in the front. So, at the front end one, we will sell a (Kawasaki) Ninja, a (KTM) Duke and a (Bajaj) Pulsar, but at the back end, they may have lot of commonality," Bajaj said.
KTM is preparing to launch Duke, a 125cc motorcycle, next year in India. The engine of the bike, likely to be priced above Rs 1 lakh, is developed by KTM and Bajaj.
"With the same people, same knowledge, same standards, they will be making those common parts," Bajaj stated.
Kawasaki - which has so far maintained a low profile in the Indian market, following increasing research and development (R&D) independence of Bajaj Auto - recently formed a subsidiary in India due to increasing demand for its Ninja 250R motorcycle.
The Japanese auto company is studying other emerging markets like China, Southeast Asia and Latin America, to carry over its alliance with Bajaj Auto.
Kawasaki is importing automotive components using the supplier base of Bajaj Auto for models sold in other parts of Asia and aims to start parts supplies to developed market of the United States and Europe.
While Bajaj Auto is helping Kawasaki by selling the latter's models in India through its own dealers, Kawasaki will provide the same assistance to Bajaj Auto in far away international markets. KTM and Kawasaki's products will come out of Bajaj Auto's Chakan plant in Pune.
At present, Kawasaki sells Bajaj bikes in countries like Columbia and the Philippines, and is exploring newer market for further expansion. Likewise, Bajaj plans to use KTM's extensive dealer network in Europe and the US to make a foray with its own range of two-wheelers.
Zensar acquires US IT solution firm Akibia for $66 million
Mumbai: RPG group-owned Zensar Technologies acquired US-based infrastructure management company PSI Holding, which operates under the name Akibia, in an allcash deal of $66 million, the Indian software exporter said at a conference on Monday.
Furthermore, the company will look at more acquisitions in strategic verticals like business intelligence and remote infrastructure management, or the new regions the company hopes to expand into, RPG group chairman, Harsh Goenka said.
RPG operates several other businesses including Ceat tyres, RPG Lifesciences, and an enterprise in rubber plantations Harrisons Malayalam. Mr Goenka said the group plans to double revenue from the current Rs 18,000 crore over the next three years.
The goal is likely to be achieved through 75% of business growth for existing companies, and the rest through acquisitions, he said.
The company that Zensar has acquired has approximately 10% earnings before interest, tax, depreciation, and amortisation, or Ebitda, margin, said Ganesh Natarajan, vice chairman and managing director, Zensar.
There are no overlapping customers between the acquired and parent companies, he added, suggesting that there is ample scope for cross-selling services to clients of each company. Akibia’s revenue in the year to September was $108 million.
Zensar will be paying performance-linked incentives to the current employees of Akibia in addition to the acquisition costs, the company said. Infrastructure management accounts for less than 10% of the company’s revenue at the moment, Mr Natarajan said. However, by 2013 Zensar expects the business will contribute 30% of revenue.
The revenue growth target for Akibia’s existing business over the next year or two is 10-12%, he said. Yet, the new business of Akibia is likely to be partly offshored, which will possibly aid the overall operating margins of the company.
Typically, Indian software companies offshore work from the US to India, thereby reducing the cost for clients, and also increasing their profit margin on the business.
Furthermore, the company will look at more acquisitions in strategic verticals like business intelligence and remote infrastructure management, or the new regions the company hopes to expand into, RPG group chairman, Harsh Goenka said.
RPG operates several other businesses including Ceat tyres, RPG Lifesciences, and an enterprise in rubber plantations Harrisons Malayalam. Mr Goenka said the group plans to double revenue from the current Rs 18,000 crore over the next three years.
The goal is likely to be achieved through 75% of business growth for existing companies, and the rest through acquisitions, he said.
The company that Zensar has acquired has approximately 10% earnings before interest, tax, depreciation, and amortisation, or Ebitda, margin, said Ganesh Natarajan, vice chairman and managing director, Zensar.
There are no overlapping customers between the acquired and parent companies, he added, suggesting that there is ample scope for cross-selling services to clients of each company. Akibia’s revenue in the year to September was $108 million.
Zensar will be paying performance-linked incentives to the current employees of Akibia in addition to the acquisition costs, the company said. Infrastructure management accounts for less than 10% of the company’s revenue at the moment, Mr Natarajan said. However, by 2013 Zensar expects the business will contribute 30% of revenue.
The revenue growth target for Akibia’s existing business over the next year or two is 10-12%, he said. Yet, the new business of Akibia is likely to be partly offshored, which will possibly aid the overall operating margins of the company.
Typically, Indian software companies offshore work from the US to India, thereby reducing the cost for clients, and also increasing their profit margin on the business.
Indian Bank gets approval to open branch in Jaffna
Chennai: Indian Bank has received the Central Bank of Sri Lanka's nod to open its branch at Jaffna in Sri Lanka, according to its chairman and managing director T M Bhasin.
During his recent visit to Sri Lanka, he had said that the new branch would adopt a different model for its Jaffna operations by forming and lending to self-help groups in sectors such as agriculture, fisheries and dairy.
The bank would deploy the deposits garnered from Jaffna, in Jaffna itself to improve the economic development and to help improve the lives of the people there.
Indian Bank which helped in the formation of more than 450,000 SHGs and financing them through its 29 exclusive microsate branches in India will replicate a similar model in Jaffna.
The bank is also looking at expanding its footprint on the east coast of the island nation with two branches being planned in Batticaloa and Trincomalee by the end of next year. The bank’s Colombo branch which has a balance sheet of 5 billion Sri Lankan rupees, plans to double it in two years. It would also play a major role in the rebuilding and rehabilitation process in Jaffna by financing the houses planned to be built for the displaced people.
Sri Lanka’s infrastructure development is witnessing a boom similar to India which has been growing at a pace of 40 per cent in the last three years. Indian Bank would actively lend for infrastructure development activities through the new branches.
Bhasin further said that the Colombo branch had been ploughing back profits to boost the capital to prepare for higher loan growth.
It already had 3.5 billion rupees by way of capital which was higher than the required 3 billion year-end floor set by the Central Bank of Sri Lanka. If needed, the bank may further infuse capital from India for expansion of credit in the Island nation, he said.
During his recent visit to Sri Lanka, he had said that the new branch would adopt a different model for its Jaffna operations by forming and lending to self-help groups in sectors such as agriculture, fisheries and dairy.
The bank would deploy the deposits garnered from Jaffna, in Jaffna itself to improve the economic development and to help improve the lives of the people there.
Indian Bank which helped in the formation of more than 450,000 SHGs and financing them through its 29 exclusive microsate branches in India will replicate a similar model in Jaffna.
The bank is also looking at expanding its footprint on the east coast of the island nation with two branches being planned in Batticaloa and Trincomalee by the end of next year. The bank’s Colombo branch which has a balance sheet of 5 billion Sri Lankan rupees, plans to double it in two years. It would also play a major role in the rebuilding and rehabilitation process in Jaffna by financing the houses planned to be built for the displaced people.
Sri Lanka’s infrastructure development is witnessing a boom similar to India which has been growing at a pace of 40 per cent in the last three years. Indian Bank would actively lend for infrastructure development activities through the new branches.
Bhasin further said that the Colombo branch had been ploughing back profits to boost the capital to prepare for higher loan growth.
It already had 3.5 billion rupees by way of capital which was higher than the required 3 billion year-end floor set by the Central Bank of Sri Lanka. If needed, the bank may further infuse capital from India for expansion of credit in the Island nation, he said.
Railways' freight revenue grows by 8.4 per cent in October 2010
New Delhi: The Indian Railways has registered a growth of 8.39 per cent in freight revenues in October 2010 as compared to the corresponding period in 2009.
The freight earnings in the month of October 2010 stood at US$ 1.15 billion. The rise is supported by good growth in transportation of coal, raw material movement to steel plants, cement, foodgrains, fertilisers, mineral oil and containers.
The earnings for some of commodities such as coal stood at US$ 444.11 million, cement at US$ 111.41 million, foodgrains at US$ 78 million, fertilisers at US$ 81.53 million, mineral oil at US$ 64.14 million, and container traffic revenue at US$ 60.03 million.
Furthermore, the export traffic for iron ore was 1.78 million tonne (MT) in October 2010, while the revenue from iron ore export traffic stood at US$ 76.23 million.
The freight earnings in the month of October 2010 stood at US$ 1.15 billion. The rise is supported by good growth in transportation of coal, raw material movement to steel plants, cement, foodgrains, fertilisers, mineral oil and containers.
The earnings for some of commodities such as coal stood at US$ 444.11 million, cement at US$ 111.41 million, foodgrains at US$ 78 million, fertilisers at US$ 81.53 million, mineral oil at US$ 64.14 million, and container traffic revenue at US$ 60.03 million.
Furthermore, the export traffic for iron ore was 1.78 million tonne (MT) in October 2010, while the revenue from iron ore export traffic stood at US$ 76.23 million.
India open to joint venture for gas-based fertiliser plants in Saudi
New Delhi: India is keen to set up joint ventures for gas-based fertiliser plants in Saudi Arabia, the Union Commerce and Industry Minister, Mr Anand Sharma, said on Friday.
After a meeting with the Saudi Arabian Minister of Commerce and Industry, Mr Abdullah bin Ahmed Zainal Alireza, here, Mr Sharma said in a statement that, “Indian companies have evinced keen interest in setting up of such projects (gas-based fertiliser plants) in the Kingdom of Saudi Arabia.”
He added that while the trade ties are already quite substantial, there is immense potential for taking it to a higher level.
The statement said both sides felt that the focus is to be shifted to investment and joint ventures for enhancing trade in goods and services. It said an emphasis on regular exchange of business delegations would also help.
Stating that economic ties would constitute a solid foundation for the development of Indo-Saudi Strategic Partnership, Mr Sharma told his counterpart that strategies should be developed to increase the trade volume in traditional items and diversifying the trade basket.
Bilateral trade growing
India and Saudi Arabia trade has increased from $3.44 billion in 2005-06 to $21 billion in 2009-10. India's exports to Saudi Arabia have increased from $1.8 billion in 2005-06 to $3.9 billion in 2009-10. Major item of export to Saudi Arabia are petroleum products, basmati rice, non-ferrous metals, machinery and instruments, dyes/intermediary and coal tar chemicals.
Imports from Saudi Arabia have increased from $1.63 billion in 2005-06 to $17 billion in 2009-10 and the main items of imports are petroleum products, organic chemicals, artificial resin and plastic.
FDI
The foreign direct investment from Saudi Arabia during April 2000-August 2010 is to the tune of $31.59 Million. Main sectors that attracted FDI from Saudi Arabia are electrical equipments, food processing industries, automobile industry, computer software and hardware and telecommunications.
After a meeting with the Saudi Arabian Minister of Commerce and Industry, Mr Abdullah bin Ahmed Zainal Alireza, here, Mr Sharma said in a statement that, “Indian companies have evinced keen interest in setting up of such projects (gas-based fertiliser plants) in the Kingdom of Saudi Arabia.”
He added that while the trade ties are already quite substantial, there is immense potential for taking it to a higher level.
The statement said both sides felt that the focus is to be shifted to investment and joint ventures for enhancing trade in goods and services. It said an emphasis on regular exchange of business delegations would also help.
Stating that economic ties would constitute a solid foundation for the development of Indo-Saudi Strategic Partnership, Mr Sharma told his counterpart that strategies should be developed to increase the trade volume in traditional items and diversifying the trade basket.
Bilateral trade growing
India and Saudi Arabia trade has increased from $3.44 billion in 2005-06 to $21 billion in 2009-10. India's exports to Saudi Arabia have increased from $1.8 billion in 2005-06 to $3.9 billion in 2009-10. Major item of export to Saudi Arabia are petroleum products, basmati rice, non-ferrous metals, machinery and instruments, dyes/intermediary and coal tar chemicals.
Imports from Saudi Arabia have increased from $1.63 billion in 2005-06 to $17 billion in 2009-10 and the main items of imports are petroleum products, organic chemicals, artificial resin and plastic.
FDI
The foreign direct investment from Saudi Arabia during April 2000-August 2010 is to the tune of $31.59 Million. Main sectors that attracted FDI from Saudi Arabia are electrical equipments, food processing industries, automobile industry, computer software and hardware and telecommunications.
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