MUMBAI: The market share of non-banking financial companies, or NBFCs, is expected to go up by 47% in the next three years, according to a report by ratings firm Crisil. NBFCs that at present have a 26% market share in the non-mortgage lending will see a compounded growth of 20% in the next couple of years.
"After the lull of 2007-08, profitability of NBFCs has returned to peak levels," said Crisil managing director Rupa Kudwa . "We expect retail lending of NBFCs to touch around Rs 4 lakh crore by 2013, which is close to commercial banking lending," she added. There are right now over 300 registered NBFCs with the Reserve Bank of India .
Crisil has rated 54 NBFCs among these. The rating agency has looked at NBFCs offering consumer and asset financing. It has, however, not taken into account NBFCs that offer housing loans. NBFCs have raised Rs 17,000 crore in the past three years and the share of financing has also diversified from the traditional vehicle financing to other areas of lending like gold and corporate loans. But concerns remain on the sustainability of this growth.
"The ability of NBFCs to raise capital remains an issue," said Pawan Agarwal, director of corporate and government ratings, Crisil. Another key concern for the sector remains the issue of securitisation, according to a draft paper which was released recently by the central bank.
The NBFC sector is also closely watching the guidelines on the new banking licences as that could determine the fate of most of these companies . RBI is set to release a draft paper on banking licences by the end of this month.
Success in my Habit
Wednesday, March 16, 2011
TVS to re-launch electric scooters in 2011-12
NEW DELHI: Chennai-based two-wheeler maker TVS Motor Company today said it will re-enter the Indian electric scooter market with some existing and new models in the next fiscal.
The company is currently carrying out test runs of about 50 electric scooters across various towns in the country.
"We are working on introducing electric scooters and these are being experimented for the launch. By some time next fiscal, it will come (to the market)," TVS Motor Company President (Marketing) H S Goindi told reporters here.
About 50 electric scooters, comprising some of its existing and new models, are being tested across the country, he added.
"We will launch only scooters in electric mode. The products will initially run on lead acid batteries and later we may develop some other technology also," Goindi said.
The company will produce these new products at its Mysore facility, he said.
When asked about the electric two-wheeler market, Goindi said: "Business in India picked up few years back and also dropped because of variety of issues. Now, subsidy has also been offered, but still it is very sketchy... We feel, business will again pick up."
Earlier, TVS had launched electric scooterette 'Scooty Teenz Electric' in April 2008 with high hopes of selling around 40,000 units per year. However, it stopped the production in May 2009 as it received a lukewarm response from the market.
The company had also shelved its plans to launch electric three-wheelers. "We have an electric three-wheeler, which we had planned to introduce but there is no market for such products. So we don't have any plans to launch it now," Goindi had said in June 2010.
The Budget for 2011-12 proposed to set up a National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles.
It also proposed to cut excise duty on development and manufacturing of hybrid vehicle kits to 5 per cent from the existing 10 per cent, besides fully exempting customs and counter-vailing duty on import of special hybrid parts.
In November last year, the government had announced a Rs 95 crore incentive package for the electric vehicle makers for the remaining part of the 11th plan.
The company is currently carrying out test runs of about 50 electric scooters across various towns in the country.
"We are working on introducing electric scooters and these are being experimented for the launch. By some time next fiscal, it will come (to the market)," TVS Motor Company President (Marketing) H S Goindi told reporters here.
About 50 electric scooters, comprising some of its existing and new models, are being tested across the country, he added.
"We will launch only scooters in electric mode. The products will initially run on lead acid batteries and later we may develop some other technology also," Goindi said.
The company will produce these new products at its Mysore facility, he said.
When asked about the electric two-wheeler market, Goindi said: "Business in India picked up few years back and also dropped because of variety of issues. Now, subsidy has also been offered, but still it is very sketchy... We feel, business will again pick up."
Earlier, TVS had launched electric scooterette 'Scooty Teenz Electric' in April 2008 with high hopes of selling around 40,000 units per year. However, it stopped the production in May 2009 as it received a lukewarm response from the market.
The company had also shelved its plans to launch electric three-wheelers. "We have an electric three-wheeler, which we had planned to introduce but there is no market for such products. So we don't have any plans to launch it now," Goindi had said in June 2010.
The Budget for 2011-12 proposed to set up a National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles.
It also proposed to cut excise duty on development and manufacturing of hybrid vehicle kits to 5 per cent from the existing 10 per cent, besides fully exempting customs and counter-vailing duty on import of special hybrid parts.
In November last year, the government had announced a Rs 95 crore incentive package for the electric vehicle makers for the remaining part of the 11th plan.
Toyota Motors to invest in Rs 300 cr to enhance capacity of its Indian subsidiary
NEW DELHI: Toyota Motors Corp (TMC) will invest Rs 300 crore to enhance capacity of its Indian subsidiary by 60,000 units in the next one year.
Toyota Kirloskar Motors (TKM), the local subsidiary of the Japanese company, will take the cumulative capacity of its two plants in Bangalore to 2.1 lakh units to meet rising demand from the local market.
"We have plans to grow gradually as demand will justify our capacity additions. The major expansion will be for our Etios sedan and its yet-to-be-launched hatchback model Etios Liva. In case, the local demand outstrips our capacity projections in the domestic market, we may accelerate our expansion for the Indian customers," TKM's MD Hiroshi Nakagawa said.
These expansion plans comes after the parent TMC plans to have larger focus on emerging market including Asia and projects a larger chunk of sales from such markets. The world's largest car maker, by sales, Toyota is looking at 50% of its future sales coming from Brazil, Russia, China and India (commonly referred as BRIC) and other emerging markets.
"Fortunately we have a huge booking backlog for Etios and other cars that stretches up to six months in different cities and towns of India. But even after successive expansions in place to make deliveries faster to customers, we have not able able to bridge the demand-supply gap. We will expand in stage to narrow down the gap in next few months," Nakagawa added.
Toyota's India sales grew 31% to 74,362 units in the April-February months, which gives it around 3.5% market share of the 2.2 million Indian passenger car sold in the same period.
The company also plans to start exporting cars from India, primarily Etios to similar emerging market in near future, though is has not frozen any exact countries for shipment. Currently its entire production is targets Indian customers only.
Toyota Kirloskar Motors (TKM), the local subsidiary of the Japanese company, will take the cumulative capacity of its two plants in Bangalore to 2.1 lakh units to meet rising demand from the local market.
"We have plans to grow gradually as demand will justify our capacity additions. The major expansion will be for our Etios sedan and its yet-to-be-launched hatchback model Etios Liva. In case, the local demand outstrips our capacity projections in the domestic market, we may accelerate our expansion for the Indian customers," TKM's MD Hiroshi Nakagawa said.
These expansion plans comes after the parent TMC plans to have larger focus on emerging market including Asia and projects a larger chunk of sales from such markets. The world's largest car maker, by sales, Toyota is looking at 50% of its future sales coming from Brazil, Russia, China and India (commonly referred as BRIC) and other emerging markets.
"Fortunately we have a huge booking backlog for Etios and other cars that stretches up to six months in different cities and towns of India. But even after successive expansions in place to make deliveries faster to customers, we have not able able to bridge the demand-supply gap. We will expand in stage to narrow down the gap in next few months," Nakagawa added.
Toyota's India sales grew 31% to 74,362 units in the April-February months, which gives it around 3.5% market share of the 2.2 million Indian passenger car sold in the same period.
The company also plans to start exporting cars from India, primarily Etios to similar emerging market in near future, though is has not frozen any exact countries for shipment. Currently its entire production is targets Indian customers only.
Toyota Kirloskar Motor ramps up production to 2,10,000 units
BANGALORE: Toyota Kirloskar Motor (TKM) today announced that it will ramp up its annual production capacity to 2,10,000 units.
The ramp up is in line with TKM's increasing annual production capacity in order to cater to the increase in demand for Innova, Fortuner, Corolla Altis and Etios, a company press release said.
The company recently announced plans for introduction of a second shift production in April, reduction in production time per vehicle, production enhancement and postponement of the launch of hatchback Etios Liva from April to June 2011 aimed at reducing the waiting period for Etios.
Furthering these measures, annual production capacity of the first plant currently manufacturing the Innova, Corolla Altis and Fortuner, will be increased from 80,000 units to 90,000 units in the third quarter of 2011.
The second plant currently manufactures the Etios. To cater to the increasing demand for Etios and with a view to reduce the waiting period, annual production capacity for the second plant will be raised from 70,000 to 1,20,000 units, it said.
The expansion will be carried out in a phased manner starting July 2011, extending into the second quarter of 2012. The 1,20,000 units will also include 20,000 units of Corolla Altis, shifted from the first plant to the second plant in the first half of 2012.
Hiroshi Nakagawa, Managing Director, TKM said "The demand for Innova and Fortuner has persistently grown in the recent months and consequently the waiting period. The huge demand for the Etios has further provided momentum to expand our production capacity. We will enhance our production capacity to cater to our customers growing demand."
Sandeep Singh , Deputy Managing Director, Marketing, TKM added "We recently announced our plans to bring down the waiting period for Etios, which included enhancing production and deferring launch of Etios Liva. This production expansion will further our aim to bring down the waiting period."
Toyota had postponed the opening ceremony of its second plant in Bidadi scheduled for March 15 following the earthquake and tsunami in Japan.
The ramp up is in line with TKM's increasing annual production capacity in order to cater to the increase in demand for Innova, Fortuner, Corolla Altis and Etios, a company press release said.
The company recently announced plans for introduction of a second shift production in April, reduction in production time per vehicle, production enhancement and postponement of the launch of hatchback Etios Liva from April to June 2011 aimed at reducing the waiting period for Etios.
Furthering these measures, annual production capacity of the first plant currently manufacturing the Innova, Corolla Altis and Fortuner, will be increased from 80,000 units to 90,000 units in the third quarter of 2011.
The second plant currently manufactures the Etios. To cater to the increasing demand for Etios and with a view to reduce the waiting period, annual production capacity for the second plant will be raised from 70,000 to 1,20,000 units, it said.
The expansion will be carried out in a phased manner starting July 2011, extending into the second quarter of 2012. The 1,20,000 units will also include 20,000 units of Corolla Altis, shifted from the first plant to the second plant in the first half of 2012.
Hiroshi Nakagawa, Managing Director, TKM said "The demand for Innova and Fortuner has persistently grown in the recent months and consequently the waiting period. The huge demand for the Etios has further provided momentum to expand our production capacity. We will enhance our production capacity to cater to our customers growing demand."
Sandeep Singh , Deputy Managing Director, Marketing, TKM added "We recently announced our plans to bring down the waiting period for Etios, which included enhancing production and deferring launch of Etios Liva. This production expansion will further our aim to bring down the waiting period."
Toyota had postponed the opening ceremony of its second plant in Bidadi scheduled for March 15 following the earthquake and tsunami in Japan.
BMW raises capacity at Chennai unit
MUNICH: German carmaker BMW has increased capacity at its Chennai manufacturing facility to 10,000 vehicles per annum from 6,000 vehicles as it looks to strengthen its number one position in the luxury car segment, it said on Tuesday.
"If the market continues to grow at the same pace, we could consider looking at a second production facility by 2015," said its board member Ian Robertson . The company, which so far been assembling the 3 series, 5 series, and X1 models in India, is looking at assembling the X3 model in the country by middle of the year.
Concerns over rising oil prices have prompted the company to enhance focus on its electric (i range) and hybrid range of cars for emerging countries such as India, China, and Brazil. From 2013, BMWi will offer highly sustainable electric cars and the i3 will be the first all-electric vehicle for urban centres, Mr Robertson said. "We are continuously looking at new models and cannot rule out launch of the second generation of the BMWi series in emerging markets," he said.
"If the market continues to grow at the same pace, we could consider looking at a second production facility by 2015," said its board member Ian Robertson . The company, which so far been assembling the 3 series, 5 series, and X1 models in India, is looking at assembling the X3 model in the country by middle of the year.
Concerns over rising oil prices have prompted the company to enhance focus on its electric (i range) and hybrid range of cars for emerging countries such as India, China, and Brazil. From 2013, BMWi will offer highly sustainable electric cars and the i3 will be the first all-electric vehicle for urban centres, Mr Robertson said. "We are continuously looking at new models and cannot rule out launch of the second generation of the BMWi series in emerging markets," he said.
Hero's new identity costs Rs 100 cr; new name and logo on products
MUMBAI/NEW DELHI: Hero Honda has set aside a kitty of Rs 100 crore to create a new brand identity that will lead to a new company name and corporate logo to be etched on every bike and scooter it sells in the Indian market, people familiar with the matter told ET.
The company has shortlisted five agencies -JWT, Draftfcb Ulka, Mudra, Law & Kenneth , and Percept H - to create the new brand identity, sources said. JWT, Draftfcb Ulka, and Percept H already handle various brands in the Hero Honda portfolio. These five agencies will join London-based design agency Wolff Olins to work on the brand repositioning, including new name and logo.
The new logo, expected to have a direct connect with its mass customers and to be unveiled in the next few months, will drop the Honda name from its corporate identity. Hero Honda has not yet replied to an e-mail query by ET on the rebranding plans.
The 27-year-old Indo-Japanese venture, which is the world's largest two-wheeler maker by volume, is awaiting regulatory approvals to break its joint venture with Honda and pursue operations independently.
Hero Honda managing director Pawan Munjal is taking a personal interest in the presentation made by these agencies, as he wants to ensure no stone is left unturned to announce a new brand post the separation from Honda, people close to the matter said. "The final call on the selection of the agency to work with Wolff Olins could get delayed as senior officials from Hero Honda are in Japan and their arrival back to India has got delayed due to the earthquake," sources said.
The Hero group's new brand would also have a global presence as the company intends to ship its bikes and scooters to markets such as Latin America, Africa, Middle East, and South East Asia.
"Hero Honda wants to ensure that the announcement of the new brand identity and the subsequent communication is high decibel and is in line with the recent brand re-launches, if not better," sources said.
The agencies in fray to undertake the rebranding exercise will also present their assessment of recent brand revamps such as Airtel and entry strategies used by new brands like Tata Docomo - which were also developed by the Wolff Olins.
Analysts tracking the market said that the new brand positioning is likely to be India-centric and will take into account the independent technology strength the company aims to acquire. "Hero has to take its customer connect to the next level. It primarily operates at the entry-level of the two-wheeler market and the new branding has to synergise technology and masculinity associated with the automotive world. It should have a stronger marketing participation at its sales points that will drive customer interest in the company," Shravani Sen, director of Delhi-based marketing firm Synovates , said. A similar rebranding exercise was seen during the divorce of Bajaj Auto from Kawasaki and TVS Motors from Suzuki, he added.
Hero Honda has been one of the largest spenders in the Indian marketing space and has been actively associated with top-notch events such as ICC World Cup, Indian Open Golf Tournament, IPL , and Commonwealth Games . The company likely spends over Rs 300 crore annually on marketing and product promotions.
The company has shortlisted five agencies -JWT, Draftfcb Ulka, Mudra, Law & Kenneth , and Percept H - to create the new brand identity, sources said. JWT, Draftfcb Ulka, and Percept H already handle various brands in the Hero Honda portfolio. These five agencies will join London-based design agency Wolff Olins to work on the brand repositioning, including new name and logo.
The new logo, expected to have a direct connect with its mass customers and to be unveiled in the next few months, will drop the Honda name from its corporate identity. Hero Honda has not yet replied to an e-mail query by ET on the rebranding plans.
The 27-year-old Indo-Japanese venture, which is the world's largest two-wheeler maker by volume, is awaiting regulatory approvals to break its joint venture with Honda and pursue operations independently.
Hero Honda managing director Pawan Munjal is taking a personal interest in the presentation made by these agencies, as he wants to ensure no stone is left unturned to announce a new brand post the separation from Honda, people close to the matter said. "The final call on the selection of the agency to work with Wolff Olins could get delayed as senior officials from Hero Honda are in Japan and their arrival back to India has got delayed due to the earthquake," sources said.
The Hero group's new brand would also have a global presence as the company intends to ship its bikes and scooters to markets such as Latin America, Africa, Middle East, and South East Asia.
"Hero Honda wants to ensure that the announcement of the new brand identity and the subsequent communication is high decibel and is in line with the recent brand re-launches, if not better," sources said.
The agencies in fray to undertake the rebranding exercise will also present their assessment of recent brand revamps such as Airtel and entry strategies used by new brands like Tata Docomo - which were also developed by the Wolff Olins.
Analysts tracking the market said that the new brand positioning is likely to be India-centric and will take into account the independent technology strength the company aims to acquire. "Hero has to take its customer connect to the next level. It primarily operates at the entry-level of the two-wheeler market and the new branding has to synergise technology and masculinity associated with the automotive world. It should have a stronger marketing participation at its sales points that will drive customer interest in the company," Shravani Sen, director of Delhi-based marketing firm Synovates , said. A similar rebranding exercise was seen during the divorce of Bajaj Auto from Kawasaki and TVS Motors from Suzuki, he added.
Hero Honda has been one of the largest spenders in the Indian marketing space and has been actively associated with top-notch events such as ICC World Cup, Indian Open Golf Tournament, IPL , and Commonwealth Games . The company likely spends over Rs 300 crore annually on marketing and product promotions.
Toyota, Nissan reopen plants in Japan
NEW DELHI: In early signs of recovery for the Japanese auto industry, Toyota , Nissan and Mitsubishi have decided to reopen some plants. However, full-fledged production is still some time off.
The fate of a large number of component vendors as well as power supply shortages are the biggest concerns for Japanese auto companies like Toyota, Honda, Suzuki and Nissan. This is also an irritant for their Indian subsidiaries, which depend in varying degrees on the parent for crucial component and technology support.
Toyota, which closed down all plants in Japan after the March 11 quake, decided to reopen seven plants in Aichi prefecture from Thursday, a spokesman said in Tokyo. However, it will keep 21 plants shut until March 22. On the other hand, Nissan and an affiliate would reopen one plant on Thursday and another on March 18. Two factories, however, will remain closed until March 20, while another will operate partially. No decision has been made on reopening a sixth plant.
Mitsubishi also resumed production at its three plants in central and western Japan. These will continue running through Thursday, though no decision has been made about continuing output thereafter. But the plants of auto giants like Honda and Suzuki are still closed. Honda and Mazda said plants will be closed until March 20. Suzuki, the parent of Maruti, also said that all Japanese factories will be shut until March 21.
The fate of a large number of component vendors as well as power supply shortages are the biggest concerns for Japanese auto companies like Toyota, Honda, Suzuki and Nissan. This is also an irritant for their Indian subsidiaries, which depend in varying degrees on the parent for crucial component and technology support.
Toyota, which closed down all plants in Japan after the March 11 quake, decided to reopen seven plants in Aichi prefecture from Thursday, a spokesman said in Tokyo. However, it will keep 21 plants shut until March 22. On the other hand, Nissan and an affiliate would reopen one plant on Thursday and another on March 18. Two factories, however, will remain closed until March 20, while another will operate partially. No decision has been made on reopening a sixth plant.
Mitsubishi also resumed production at its three plants in central and western Japan. These will continue running through Thursday, though no decision has been made about continuing output thereafter. But the plants of auto giants like Honda and Suzuki are still closed. Honda and Mazda said plants will be closed until March 20. Suzuki, the parent of Maruti, also said that all Japanese factories will be shut until March 21.
Indian co gets the FT ArcelorMittal Environment Award for 2011
LONDON: Mumbai-based Jain Irrigation Systems that specialises in drip irrigation technology has won the FT (Financial Times) ArcelorMittal Environment Award for 2011 for its contribution to the agriculture sector in India.
Anil B Jain, Managing Director of the company received the award from Lakshmi Mital, Chairman and CEO, ArcelorMittal and Lionel Barber, Editor Financial Times at the FT Arcelor Mittal Boldness in Business Awards at Saatchi Gallery here last night.
"Jain was the first company to introduce drip irrigation technology to India in the 1980s. Since then it has greatly increased agricultural yields and this year the Government of India has increased subsidies for micro-irrigation to USD 221 million up 133 per cent from last year," the citation said.
Receiving the Award Anil Jain said "This award belongs to farmers of India who take so much risk against the vagories of nature."
With over 8,000 employees including 1,000 abroad, the company has achieved a turnover of 1 billion dollars this year.
"We have serviced over 25 lakh farmers in India, mostly in western and souther parts of the country and slowing its growing in northern parts as well, he said.
"The Award is a recognition of the work done by farmers. According to Jain, the company at present has 7 drip irrigation manufacturing plants and it is planning to add more such plants.
Drip irrigation systems, sprinkler irrigation systems, automation systems, valves, water filters, fertigation, equipment, green houses, plant tissue culture, nursery plants and systems, bio fertilisers are some of the manufacturing products of the company.
The company also has its operations in the USA, Europe and Brazil.
India's High Commissioner to the UK Nalin Suri, leading NRI businessman G P Hinduja, President of the Hinduja Group were among the dignitaries who attended the awards ceremony.
Allen Mulally, President and CEO of Ford was declared Person of the Year 2011 for turning around the Ford motors. The company earned a profit of USD 6.8 billion last year.
Groupon that offers daily 'money-off' deals activated if a required number of participants sign up won the best Newcomer prize, while Free, France's third-largest broadband provider won the award for entrepreneurship .
Anil B Jain, Managing Director of the company received the award from Lakshmi Mital, Chairman and CEO, ArcelorMittal and Lionel Barber, Editor Financial Times at the FT Arcelor Mittal Boldness in Business Awards at Saatchi Gallery here last night.
"Jain was the first company to introduce drip irrigation technology to India in the 1980s. Since then it has greatly increased agricultural yields and this year the Government of India has increased subsidies for micro-irrigation to USD 221 million up 133 per cent from last year," the citation said.
Receiving the Award Anil Jain said "This award belongs to farmers of India who take so much risk against the vagories of nature."
With over 8,000 employees including 1,000 abroad, the company has achieved a turnover of 1 billion dollars this year.
"We have serviced over 25 lakh farmers in India, mostly in western and souther parts of the country and slowing its growing in northern parts as well, he said.
"The Award is a recognition of the work done by farmers. According to Jain, the company at present has 7 drip irrigation manufacturing plants and it is planning to add more such plants.
Drip irrigation systems, sprinkler irrigation systems, automation systems, valves, water filters, fertigation, equipment, green houses, plant tissue culture, nursery plants and systems, bio fertilisers are some of the manufacturing products of the company.
The company also has its operations in the USA, Europe and Brazil.
India's High Commissioner to the UK Nalin Suri, leading NRI businessman G P Hinduja, President of the Hinduja Group were among the dignitaries who attended the awards ceremony.
Allen Mulally, President and CEO of Ford was declared Person of the Year 2011 for turning around the Ford motors. The company earned a profit of USD 6.8 billion last year.
Groupon that offers daily 'money-off' deals activated if a required number of participants sign up won the best Newcomer prize, while Free, France's third-largest broadband provider won the award for entrepreneurship .
Tuesday, March 8, 2011
Green-building council launches rating system
Hyderabad: The Confederation of Indian Industry (CII) and Indian Green Building Council (IGBC) have launched LEED (Leadership in Energy and Environmental Design) 2011 Green Building Rating System for India, signifying a milestone in the green-building movement in India.
Mr Prem C. Jain, Chairman of the Indian council, Ms Lynn Bellenger, President, ASHRAE, Mr Mark MacCracken, Chair of the US Green Building Council , and the board of directors launched the LEED 2011 initiative, according to a statement from CII-IGBC.
The LEED-India, which was launched in 2007, received overwhelming response from the industry. Based on the feedback and experiences of its implementation, the rating system has now been upgraded and called LEED 2011 for India.
With these proposals, LEED 2011 seeks to enhance awareness in energy and water-efficiency baselines, promotes naturally ventilated buildings and encourages passive technologies. It also seeks to align with local regulations and standards, apart from adopting latest standards.
According to CII-IGBC, India has over 995 registered green-building projects with a total footprint of 606 million sq. ft. With this, India is among the top three countries to have a large green-building footprint. This has largely been possible because of the involvement of stakeholders of the building sector — architects, builders, developers, manufacturers and consultants.
The rating system of IGBC covers homes, commercial interiors, factory buildings, schools, special economic zones and townships.
Mr S. Raghupathy, Senior Director and Head of CII-Godrej GBC, said the launch of LEED 2011 green-buildings rating system would pave way for design and construction of some of the best green buildings in India.
Mr Prem C. Jain, Chairman of the Indian council, Ms Lynn Bellenger, President, ASHRAE, Mr Mark MacCracken, Chair of the US Green Building Council , and the board of directors launched the LEED 2011 initiative, according to a statement from CII-IGBC.
The LEED-India, which was launched in 2007, received overwhelming response from the industry. Based on the feedback and experiences of its implementation, the rating system has now been upgraded and called LEED 2011 for India.
With these proposals, LEED 2011 seeks to enhance awareness in energy and water-efficiency baselines, promotes naturally ventilated buildings and encourages passive technologies. It also seeks to align with local regulations and standards, apart from adopting latest standards.
According to CII-IGBC, India has over 995 registered green-building projects with a total footprint of 606 million sq. ft. With this, India is among the top three countries to have a large green-building footprint. This has largely been possible because of the involvement of stakeholders of the building sector — architects, builders, developers, manufacturers and consultants.
The rating system of IGBC covers homes, commercial interiors, factory buildings, schools, special economic zones and townships.
Mr S. Raghupathy, Senior Director and Head of CII-Godrej GBC, said the launch of LEED 2011 green-buildings rating system would pave way for design and construction of some of the best green buildings in India.
Bank of India to open subsidiaries overseas
Bengaluru: Bank of India plans to acquire small-sized or mid-sized banks in African countries, New Zealand, and Canada. The bank is also looking at the organic route in other countries, said a top official.
“We are shortly opening subsidiaries in New Zealand, Canada and a few countries in Africa. We want to consolidate in countries where there are opportunities,” Mr N. Seshadri, Executive Director, Bank of India, told Business Line. Explaining that the RBI also advocated the subsidiary route for overseas locations, he said that the bank plans to acquire small-sized and mid-sized banks in these countries.
“If at a reasonable size we can acquire and grow inorganically, we could do that,” he added. The bank is currently present in 18 locations with over 30 branches. The bank already has permission for setting up operations in Botswana, and would actively pursue the inorganic route for this country.
According to industry estimates, a small-sized bank in the African continent would typically have 5-6 branches and could be acquired at anywhere between $5 million and $10 million. Though a location like New Zealand could be expensive , “it would add a lot of value and make business sense, since we can cover Australia too. Both the countries have a substantial Indian population,” pointed out Mr Seshadri. The bank also plans to convert its representative office in Johannesburg, South Africa, into a branch, he said.
In order to grow its balance sheet and augment future credit needs, Bank of India is looking at raising funds in the first half of the next fiscal. The bank had recently raised $750 million through the medium-term note (MTN) route and also expects about Rs 1,000-crore capital infusion from the government. With this infusion, the government holding in the bank would go up to 66 per cent from the current 64 per cent.
In addition to this, “we would also be raising additional capital in the first half of this fiscal, though we have not firmed up our budgeting plans yet,” said Mr Seshadri. As an international bank, he pointed out that Bank of India is required to maintain a tier-I capital of 8 per cent, and “there is enough headroom available in tier-II also,” he added, indicating that a dual issue is possible.
“We are shortly opening subsidiaries in New Zealand, Canada and a few countries in Africa. We want to consolidate in countries where there are opportunities,” Mr N. Seshadri, Executive Director, Bank of India, told Business Line. Explaining that the RBI also advocated the subsidiary route for overseas locations, he said that the bank plans to acquire small-sized and mid-sized banks in these countries.
“If at a reasonable size we can acquire and grow inorganically, we could do that,” he added. The bank is currently present in 18 locations with over 30 branches. The bank already has permission for setting up operations in Botswana, and would actively pursue the inorganic route for this country.
According to industry estimates, a small-sized bank in the African continent would typically have 5-6 branches and could be acquired at anywhere between $5 million and $10 million. Though a location like New Zealand could be expensive , “it would add a lot of value and make business sense, since we can cover Australia too. Both the countries have a substantial Indian population,” pointed out Mr Seshadri. The bank also plans to convert its representative office in Johannesburg, South Africa, into a branch, he said.
In order to grow its balance sheet and augment future credit needs, Bank of India is looking at raising funds in the first half of the next fiscal. The bank had recently raised $750 million through the medium-term note (MTN) route and also expects about Rs 1,000-crore capital infusion from the government. With this infusion, the government holding in the bank would go up to 66 per cent from the current 64 per cent.
In addition to this, “we would also be raising additional capital in the first half of this fiscal, though we have not firmed up our budgeting plans yet,” said Mr Seshadri. As an international bank, he pointed out that Bank of India is required to maintain a tier-I capital of 8 per cent, and “there is enough headroom available in tier-II also,” he added, indicating that a dual issue is possible.
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