MUMBAI: Maharashtra Government today said that it planned to start work on the first phase of Navi Mumbai Metro by May this year.
The first phase will comprise 11.15 km route from Belapur to Pendhar, along the Belapur-Kharghar-Taloja-Kalamboli -Khandeshwar line, which will be completed in three phases, Minister of state for Urban development , Bhaskar Jadhav, told the Legislative Assembly today.
Jadhav said tenders have been received by CIDCO, the implementing agency, for the 11.15 km route, and the actual work will start by May and will be completed by August 2014.
The remaining two phases are proposed to be started in 2015-16.
He said the land needed for constructing the Metro beyond the 11.15 km route has not been transferred to CIDCO by MIDC yet.
Delhi Metro Rail Corporation ( DMRC )) had proposed six line Metro corridor: Uran-Ranjanpada-Nerul, Belapur-Taloja-Airport, Vashi-Nerul-Panvel, Ranjanpada-Kharkopar-Seawoods, Dighe-Turbhe-Belapur and Vashi-Ghansoli-Mahape.
NCP legislators Shashikant Shinde and Jeetendra Awhad criticised the government for excluding Vashi,Kopharkhairne, Ghansoli, Airoli and Digha routes.
They said these areas have considerable middle-class population, which depends on mass rapid transit system.
The routes should be re-worked, they demanded. Jadhav said he would discuss this with the Chief Minister and the Deputy Chief Minister.
Success in my Habit
Thursday, March 17, 2011
40 SEZ developers seeks more time to implement projects
NEW DELHI: Reflecting lack of enthusiasm for the special economic zones, over 40 developers including Parsvnath SEZ Ltd and Ranbaxy Laboratories have sought more time from the government for implementing their projects.
Reliance Haryana SEZ Ltd has also requested for additional time from the Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar, the BoA agenda said.
BoA, a 19-member inter-ministerial body that deals with special economic zones (SEZs) related matters, is scheduled to meet on March 25.
Another three promoters have approached the Commerce Ministry for surrendering their projects, citing global economic uncertainty as the reason.
Maharashtra Industrial Development Corporation has approached the BoA for surrendering its sector specific tax free enclave at Solapur, the agenda said.
Gujarat Hydrocarbons and Power SEZ Ltd, which was planning to set up a sector specific SEZ in Gujarat sought "...withdrawal of formal approval due to uncertainty in the international market and in the legal framework governing SEZs".
According to an industry expert, uncertainty over tax exemptions to new SEZs has also led to declining interest in the tax free enclaves. Investors are very apprehensive about the new draft Direct Taxes Code (DTC).
According to the revised DTC draft, which will replace the Income Tax Act of 1961, tax exemptions for SEZs will be confined to the existing units.
The developers who have sought more time to implement their projects, include Mangalore SEZ Ltd , Ansal IT City and Parks Ltd and IFFCO Kisan SEZ Ltd.
Reliance Haryana SEZ Ltd, which is in the process of land acquisition, has requested for extension of in-principle approval up to March 2015 stating that land acquisition is a time consuming process.
It has requested Haryana government to acquire balance land for enabling contiguous land parcel of minimum 1,000 hectares so as to start development activity.
Reliance Haryana SEZ Ltd, which is planning to set up multi-product SEZ at Gurgaon at an area of 5,000 hectare, has acquired 1,060 hectares of land.
"In this case the validity of the in-principle approval has expired on March 2009. The developer has become due (for) fifth extension. BoA is to consider granting extension...," the agenda added.
Minister of State for Commerce and Industry Jyotiraditya Scindia has recently said in a written reply to Rajya Sabha that as much as 203 special economic zone developers have been given more time to execute their projects.
The minister had also said that 23 SEZ developers have surrendered their projects due to the impact of global economic meltdown.
Reliance Haryana SEZ Ltd has also requested for additional time from the Board of Approval (BoA), headed by Commerce Secretary Rahul Khullar, the BoA agenda said.
BoA, a 19-member inter-ministerial body that deals with special economic zones (SEZs) related matters, is scheduled to meet on March 25.
Another three promoters have approached the Commerce Ministry for surrendering their projects, citing global economic uncertainty as the reason.
Maharashtra Industrial Development Corporation has approached the BoA for surrendering its sector specific tax free enclave at Solapur, the agenda said.
Gujarat Hydrocarbons and Power SEZ Ltd, which was planning to set up a sector specific SEZ in Gujarat sought "...withdrawal of formal approval due to uncertainty in the international market and in the legal framework governing SEZs".
According to an industry expert, uncertainty over tax exemptions to new SEZs has also led to declining interest in the tax free enclaves. Investors are very apprehensive about the new draft Direct Taxes Code (DTC).
According to the revised DTC draft, which will replace the Income Tax Act of 1961, tax exemptions for SEZs will be confined to the existing units.
The developers who have sought more time to implement their projects, include Mangalore SEZ Ltd , Ansal IT City and Parks Ltd and IFFCO Kisan SEZ Ltd.
Reliance Haryana SEZ Ltd, which is in the process of land acquisition, has requested for extension of in-principle approval up to March 2015 stating that land acquisition is a time consuming process.
It has requested Haryana government to acquire balance land for enabling contiguous land parcel of minimum 1,000 hectares so as to start development activity.
Reliance Haryana SEZ Ltd, which is planning to set up multi-product SEZ at Gurgaon at an area of 5,000 hectare, has acquired 1,060 hectares of land.
"In this case the validity of the in-principle approval has expired on March 2009. The developer has become due (for) fifth extension. BoA is to consider granting extension...," the agenda added.
Minister of State for Commerce and Industry Jyotiraditya Scindia has recently said in a written reply to Rajya Sabha that as much as 203 special economic zone developers have been given more time to execute their projects.
The minister had also said that 23 SEZ developers have surrendered their projects due to the impact of global economic meltdown.
Nirula's aims 50 outlets in 1 year, overseas expansion by 2013
NEW DELHI: Quick-service restaurant chain Nirula's today said it will open 50 new outlets in the next 12 months across India, entailing an investment of Rs 15-20 crore, besides planning an international expansion by 2013.
"Nirula's will expand into seven new cities in India in the next 12 months, including Patna, Dehradun, Pune and Baroda to open 50 new outlets. The company will invest about Rs 15-20 crore along with the franchisees for expansion," Nirula's CEO and MD Samir Kuckreja told PTI.
Of the upcoming restaurants, about 50 per cent will be company owned and the rest run by franchisees.
Commenting on international expansion, Kuckreja said the company is eyeing overseas presence in the next three years.
"In the past we have had successful operations in Nepal and Oman. We have plans to expand in markets outside in India by 2013 fiscal. We would look at the SAARC countries such as Sri Lanka, Bangladesh, Nepal, Pakistan and also the Middle East," he said.
Currently, Nirula's operates 85 outlets in eight cities in India and claims to be growing at a CAGR of 20-25 per cent in the last five years.
For domestic expansion, the company will set up outlets in malls and high streets besides tapping other avenues such as highways, metro stations, hospitals and airports.
"Nirula's will expand into seven new cities in India in the next 12 months, including Patna, Dehradun, Pune and Baroda to open 50 new outlets. The company will invest about Rs 15-20 crore along with the franchisees for expansion," Nirula's CEO and MD Samir Kuckreja told PTI.
Of the upcoming restaurants, about 50 per cent will be company owned and the rest run by franchisees.
Commenting on international expansion, Kuckreja said the company is eyeing overseas presence in the next three years.
"In the past we have had successful operations in Nepal and Oman. We have plans to expand in markets outside in India by 2013 fiscal. We would look at the SAARC countries such as Sri Lanka, Bangladesh, Nepal, Pakistan and also the Middle East," he said.
Currently, Nirula's operates 85 outlets in eight cities in India and claims to be growing at a CAGR of 20-25 per cent in the last five years.
For domestic expansion, the company will set up outlets in malls and high streets besides tapping other avenues such as highways, metro stations, hospitals and airports.
ONGC's cover may cost more
MUMBAI: ONGC India is expected to face a 'hard' market when it approaches international underwriters next week to renew its $28.5 billion insurance policy. ONGC is the holder of the biggest insurance policy in India.
On the other hand, Reliance Industries-the largest private sector insurance policy holder-has managed to get its policy renewed without any significant hike in rates since its contract fell due more than a fortnight before the deadly earthquake struck Japan.
Last year, ONGC was fortunate as its policy was renewed weeks before BP Deepwater Horizon explosion, which caused a massive oil spill in the Gulf of Mexico pushing up rates for offshore rigs worldwide. For 2010-11, ONGC managed to insure its offshore assets which were worth well over $26.5 billion for $30 million. The policy was renewed because of support provided by international reinsurers.
This year the state-owned company has shortlisted United India Insurance, which has appointed top international broking firms, including Aon, Marsh and JWT, to help it secure cover from international reinsurers. Reliance Industries has had its policy renewed by New India and ICICI Lombard.
Other Indian companies which have their policies due for renewal in April are finding that they may have to wait for a while. "Most reinsurers have put on hold quoting for risks until they have a better assessment of their own exposure to the loss," said Gaurav Garg, MD, Tata AIG General Insurance.
"However, there is a possibility that India might still emerge as an attractive market to Cat (catastrophe) reinsurers as compared to some other markets," said Garg. This was because there have not been many major disasters in recent years and also the fact that whenever there have been disasters, insurance losses have not been very high because of the low level of insurance penetration.
For insurance buyers, the earthquake will only compound their woes. End-March insurance companies were hit by a Rs 3,500 crore provisioning required to be made on their motor-third party insurance portfolio. This provisioning will erase profits and reduce the capacity of insurance companies to provide cover. Now with reinsurers increasing the pressure from the other end, insurers will be forced to increase prices wherever possible.
Japanese reinsures like Sumitomo have emerged major underwriters in the international market in recent times. It is not clear whether the capacity of these Japanese underwriters will take a hit in light of domestic losses.
On the other hand, Reliance Industries-the largest private sector insurance policy holder-has managed to get its policy renewed without any significant hike in rates since its contract fell due more than a fortnight before the deadly earthquake struck Japan.
Last year, ONGC was fortunate as its policy was renewed weeks before BP Deepwater Horizon explosion, which caused a massive oil spill in the Gulf of Mexico pushing up rates for offshore rigs worldwide. For 2010-11, ONGC managed to insure its offshore assets which were worth well over $26.5 billion for $30 million. The policy was renewed because of support provided by international reinsurers.
This year the state-owned company has shortlisted United India Insurance, which has appointed top international broking firms, including Aon, Marsh and JWT, to help it secure cover from international reinsurers. Reliance Industries has had its policy renewed by New India and ICICI Lombard.
Other Indian companies which have their policies due for renewal in April are finding that they may have to wait for a while. "Most reinsurers have put on hold quoting for risks until they have a better assessment of their own exposure to the loss," said Gaurav Garg, MD, Tata AIG General Insurance.
"However, there is a possibility that India might still emerge as an attractive market to Cat (catastrophe) reinsurers as compared to some other markets," said Garg. This was because there have not been many major disasters in recent years and also the fact that whenever there have been disasters, insurance losses have not been very high because of the low level of insurance penetration.
For insurance buyers, the earthquake will only compound their woes. End-March insurance companies were hit by a Rs 3,500 crore provisioning required to be made on their motor-third party insurance portfolio. This provisioning will erase profits and reduce the capacity of insurance companies to provide cover. Now with reinsurers increasing the pressure from the other end, insurers will be forced to increase prices wherever possible.
Japanese reinsures like Sumitomo have emerged major underwriters in the international market in recent times. It is not clear whether the capacity of these Japanese underwriters will take a hit in light of domestic losses.
LG to invest Rs 1,500 cr on marketing, manufacturing this year
NEW DELHI: Korean consumer durables maker LG Electronics today said it will invest Rs 1,500 crore in India this year to ramp up production and market the brand.
"We will invest Rs 800 crore to increase our manufacturing capacity this year and another Rs 700 crore on brand building and marketing activities," LG Electronics India Pvt Ltd (LGEIL) COO Y V Verma told PTI.
The investment will be aimed at achieving the turnover target of Rs 20,000 crore set by LGEIL for 2011.
"We did around Rs 16,000 crore last year and this year we are targeting a 25 per cent increase in the total turnover at Rs 20,000 crore," Verma said.
He said the company would focus on product categories such as flat panel TVs, air conditioners and mobile phones to drive growth in India.
Commenting on manufacturing capacity expansion, Verma said the company is setting up a new production line at its existing facility in Pune for refrigerators.
"We are also increasing capacity for other products such as LCD TVs," he added without giving details.
On marketing front, LGEIL has been investing funds to position the brand LG as a premium brand.
"The Rs 700 crore marketing budget would be focused on positioning the brand in the premium segment," Verma added.
With an intention to expand reach of its products in rural markets, the company has identified 16 states in the country to conduct consumer research.
"We have identified 16 states, including Andhra Pradesh, UP and Punjab, to understand consumer demand in rural markets and enhance our distribution network," Verma said.
"We will invest Rs 800 crore to increase our manufacturing capacity this year and another Rs 700 crore on brand building and marketing activities," LG Electronics India Pvt Ltd (LGEIL) COO Y V Verma told PTI.
The investment will be aimed at achieving the turnover target of Rs 20,000 crore set by LGEIL for 2011.
"We did around Rs 16,000 crore last year and this year we are targeting a 25 per cent increase in the total turnover at Rs 20,000 crore," Verma said.
He said the company would focus on product categories such as flat panel TVs, air conditioners and mobile phones to drive growth in India.
Commenting on manufacturing capacity expansion, Verma said the company is setting up a new production line at its existing facility in Pune for refrigerators.
"We are also increasing capacity for other products such as LCD TVs," he added without giving details.
On marketing front, LGEIL has been investing funds to position the brand LG as a premium brand.
"The Rs 700 crore marketing budget would be focused on positioning the brand in the premium segment," Verma added.
With an intention to expand reach of its products in rural markets, the company has identified 16 states in the country to conduct consumer research.
"We have identified 16 states, including Andhra Pradesh, UP and Punjab, to understand consumer demand in rural markets and enhance our distribution network," Verma said.
Social networking sites drive Hidesign to tier-II cities
NEW DELHI: An overwhelming response on social networking sites has prompted Indian leather goods manufacturer Hidesign to explore cities like Aurangabad, Mangalore and Guwahati and reach out to buyers who may not be very visible but show great purchasing power.
"More people from tier-II and tier-III cities aspire towards luxury lifestyles. Hidesign saw an increase in the feedback on social networking sites like Facebook as well as in the number of online sales from these regions," Dilip Kapur, president of Hidesign, told IANS.
"So it is essential that we go to the customer rather than expect customers to visit us in metros," he added.
This is not their first attempt to enter smaller cities - the brand is already available in Pondicherry, Goa and Cochin mainly because of the huge footfalls of foreigners visiting these places.
But this is their first major expansion plan as they feel Indian consumers in emerging cities are looking beyond essentials, with high-income households in particular showing strong buying intention, thus making a strong impact on sales growth for retail brands.
Hidesign, a one-man brand, was born in Auroville in Tamil Nadu in 1978 and has turned into a business that is growing at the rate of 25-30 percent per annum. The brand has 56 stores in India.
Kapur feels the shopping malls are a boon for them. "Malls help create space that is exciting for customers. We prefer malls as they increase walk-ins," he said.
It's a surprise that the brand has its largest independent store, approximately 750 sq ft in Guwahati, Assam.
"A two-level store in Guwahati's old town overlooking the lake is our largest store till date. We expect it to thrive as a destination store as northeast India symbolizes nature, warmth and a sense of beauty that goes hand in hand with the ideals and values of Hidesign," Kapur said.
Surprisingly, when Kapur started this label, he did not start retailing from India but Britain and Australia where the market was in those days. It was only in the late 1990s that the Indian market became the focus.
But since early 2000, the brand gauged the growing economic scene in India and started to promote their brand vigorously.
"We have always taken innovative steps in reaching out to our target group through concentrated campaigns in the early 2000s instead of going mass with advertising, or directing marketing activities towards airports way before other luxury lifestyle retailers saw the opportunity," he said.
After this, the brand plans to open exclusive stores in Nagpur, Surat, Kanpur and Indore as well.
info
"More people from tier-II and tier-III cities aspire towards luxury lifestyles. Hidesign saw an increase in the feedback on social networking sites like Facebook as well as in the number of online sales from these regions," Dilip Kapur, president of Hidesign, told IANS.
"So it is essential that we go to the customer rather than expect customers to visit us in metros," he added.
This is not their first attempt to enter smaller cities - the brand is already available in Pondicherry, Goa and Cochin mainly because of the huge footfalls of foreigners visiting these places.
But this is their first major expansion plan as they feel Indian consumers in emerging cities are looking beyond essentials, with high-income households in particular showing strong buying intention, thus making a strong impact on sales growth for retail brands.
Hidesign, a one-man brand, was born in Auroville in Tamil Nadu in 1978 and has turned into a business that is growing at the rate of 25-30 percent per annum. The brand has 56 stores in India.
Kapur feels the shopping malls are a boon for them. "Malls help create space that is exciting for customers. We prefer malls as they increase walk-ins," he said.
It's a surprise that the brand has its largest independent store, approximately 750 sq ft in Guwahati, Assam.
"A two-level store in Guwahati's old town overlooking the lake is our largest store till date. We expect it to thrive as a destination store as northeast India symbolizes nature, warmth and a sense of beauty that goes hand in hand with the ideals and values of Hidesign," Kapur said.
Surprisingly, when Kapur started this label, he did not start retailing from India but Britain and Australia where the market was in those days. It was only in the late 1990s that the Indian market became the focus.
But since early 2000, the brand gauged the growing economic scene in India and started to promote their brand vigorously.
"We have always taken innovative steps in reaching out to our target group through concentrated campaigns in the early 2000s instead of going mass with advertising, or directing marketing activities towards airports way before other luxury lifestyle retailers saw the opportunity," he said.
After this, the brand plans to open exclusive stores in Nagpur, Surat, Kanpur and Indore as well.
info
Jyothy Lab acquires 15% stake in Henkel
NEW DELHI/MUMBAI/BANGALORE: Mumbai-based Jyothy Laboratories has acquired a 14.9% stake in Henkel India from Tamil Nadu Petro Products Ltd for Rs 60.73 crore in an all-cash deal. The deal makes Jyothy the largest Indian shareholder in the struggling Indian arm of Germany's Henkel AG. With Jyothy shelling out Rs 35 a share, the deal values the target company at Rs 408 crore. This is more than a 20% discount with Henkel's stock closing at Rs 45.35 on the BSE on Wednesday and translates into a market capitalisation of Rs 528 crore.
Jyothy's shares closed down 0.44% at Rs 228 on the BSE, while Henkel India rose 4.98%. The move will help Jyothy, maker of 'Ujala' fabric whitener, ramp up its share in the fastgrowing domestic detergents market, dominated by giants Hindustan Unilever (HUL) and Procter & Gamble ( P&G ). Jyothy will use funds raised from its recent QIP (qualified institutional placement) issue and other internal accruals for the acquisition. According to an official directly involved with the developments, TNPL had approached Jyothy as its stake was not clubbed under competitive bidding. Jyothy will also participate in the bidding process to gain Henkel AG's 50.9% stake in Henkel India. "We will aggressively bid for controlling stake in Henkel. The acquisition helps to strengthen our urban distribution network, as Henkel has a strong presence in modern retail formats . We are very strong in rural areas," MP Ramachandran, CMD of Jyothy Labs, said.
Jyothy Labs was advised on the deal by Mape Advisory group. Chennai-based Henkel India is known for its products Henko detergent and Fa deodorant. It is a joint venture between Germany's Henkel AG & Co and Spic Group's Tamil Nadu Petro Products, with the German firm holding 51% stake. Henkel operates in three categories - laundry and home care; cosmetics and toiletries; and adhesives and sealants. Its key brands include Henko, Mr. White, Pril, Fa, Neem and Margo. "There is synergy between the two companies and we saw a value added proposition in this stake purchase," Ramachandran added in a statement.
The deal is in contrast with the recent Reckitt-Paras deal where Paras' valuation was as much as eight times its sales. In Henkel's case, the valuation is even less than the company's annual sales, which was in excess of Rs 500 crore last calendar year. "We see no logic why Jyothy bought a stake in Henkel when it had the option of buying select brands that could fit strategically ," said a Mumbai-based investment banker, who did not wish to be quoted. Analysts also see a bidding war for the remaining stake, especially from other homegrown suitors. "It's basically just a financial investment so far.
If they manage to buy the majority stake, then brand integration between the two companies will be possible," said Anand Mour, vice-president, Indiabulls Securities . While the buy could help Jyothy ramp up share in the domestic detergents market, analysts are skeptical as both companies have been losing market-share in their core categories despite stepping up their product portfolios. "We were interested in a few brands of Henkel and not the company. But, now we will have to wait and watch on whether Jyothy manages to pick up a majority stake. While we are still keen to buy brands, the deal could now be put on the back burner," said the chief executive of a homegrown consumer products company. Marketing experts feel that both Jyothy and Henkel have strong regional presence and are now trying to widen their footprint. At the same time, rivals such as HUL and P&G are focusing on establishing a strong network in the hinterland.
Jyothy's shares closed down 0.44% at Rs 228 on the BSE, while Henkel India rose 4.98%. The move will help Jyothy, maker of 'Ujala' fabric whitener, ramp up its share in the fastgrowing domestic detergents market, dominated by giants Hindustan Unilever (HUL) and Procter & Gamble ( P&G ). Jyothy will use funds raised from its recent QIP (qualified institutional placement) issue and other internal accruals for the acquisition. According to an official directly involved with the developments, TNPL had approached Jyothy as its stake was not clubbed under competitive bidding. Jyothy will also participate in the bidding process to gain Henkel AG's 50.9% stake in Henkel India. "We will aggressively bid for controlling stake in Henkel. The acquisition helps to strengthen our urban distribution network, as Henkel has a strong presence in modern retail formats . We are very strong in rural areas," MP Ramachandran, CMD of Jyothy Labs, said.
Jyothy Labs was advised on the deal by Mape Advisory group. Chennai-based Henkel India is known for its products Henko detergent and Fa deodorant. It is a joint venture between Germany's Henkel AG & Co and Spic Group's Tamil Nadu Petro Products, with the German firm holding 51% stake. Henkel operates in three categories - laundry and home care; cosmetics and toiletries; and adhesives and sealants. Its key brands include Henko, Mr. White, Pril, Fa, Neem and Margo. "There is synergy between the two companies and we saw a value added proposition in this stake purchase," Ramachandran added in a statement.
The deal is in contrast with the recent Reckitt-Paras deal where Paras' valuation was as much as eight times its sales. In Henkel's case, the valuation is even less than the company's annual sales, which was in excess of Rs 500 crore last calendar year. "We see no logic why Jyothy bought a stake in Henkel when it had the option of buying select brands that could fit strategically ," said a Mumbai-based investment banker, who did not wish to be quoted. Analysts also see a bidding war for the remaining stake, especially from other homegrown suitors. "It's basically just a financial investment so far.
If they manage to buy the majority stake, then brand integration between the two companies will be possible," said Anand Mour, vice-president, Indiabulls Securities . While the buy could help Jyothy ramp up share in the domestic detergents market, analysts are skeptical as both companies have been losing market-share in their core categories despite stepping up their product portfolios. "We were interested in a few brands of Henkel and not the company. But, now we will have to wait and watch on whether Jyothy manages to pick up a majority stake. While we are still keen to buy brands, the deal could now be put on the back burner," said the chief executive of a homegrown consumer products company. Marketing experts feel that both Jyothy and Henkel have strong regional presence and are now trying to widen their footprint. At the same time, rivals such as HUL and P&G are focusing on establishing a strong network in the hinterland.
Siemens sets up financial services arm in India
MUMBAI: German multinational Siemens today said it has set-up a financial services arm Siemens Financial Services Private Limited (SFSPL) in India.
The newly-set-up company has filed an application for a Certificate of Registration to commence business of a non-banking financial company with the Reserve Bank of India ( RBI )), a press release issued here stated.
Subject to regulatory approval, SFSPL will focus on asset financing business by offering products such as loans, leasing solutions and hire purchase.
The company aims to provide financing offerings to Siemens customers in India, particularly in the healthcare, industry and energy sectors, the release said.
Sunil Kapoor has been appointed as the CEO of the company based in Mumbai.
The Siemens division Financial Services (SFS) is a global provider of financial solutions in the business-to-business segment.
With over 2,000 employees and an international network of financial companies, SFS supports Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare.
SFS finances infrastructure, equipment and working capital and acts as a competent manager of financial risks within Siemens, the release said.
The newly-set-up company has filed an application for a Certificate of Registration to commence business of a non-banking financial company with the Reserve Bank of India ( RBI )), a press release issued here stated.
Subject to regulatory approval, SFSPL will focus on asset financing business by offering products such as loans, leasing solutions and hire purchase.
The company aims to provide financing offerings to Siemens customers in India, particularly in the healthcare, industry and energy sectors, the release said.
Sunil Kapoor has been appointed as the CEO of the company based in Mumbai.
The Siemens division Financial Services (SFS) is a global provider of financial solutions in the business-to-business segment.
With over 2,000 employees and an international network of financial companies, SFS supports Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare.
SFS finances infrastructure, equipment and working capital and acts as a competent manager of financial risks within Siemens, the release said.
SKS Microfinance to explore banks for funds
MUMBAI: SKS Microfinance today said it will raise additional funds from banks, a move likely to help it tide over liquidity shortage.
"The Board of the Company...decided against CDR route, instead will explore other possibilities of additional fund raising from various banks/financial institutions," SKS Microfinance said in a filing to the Bombay Stock Exchange (BSE).
The Board has decided against going for Corporate Debt Restructuring (CDR) route, it said.
Several banks are believed to have approached the CDR cell of RBI to restructure loans advanced by them to Micro Finance Institutions (MFIs).
Some major banks such as State Bank of India , ICICI Bank and Axis Bank are estimated to have lent over Rs 15,000 crore to MFIs. ICICI has lent around Rs 2,000 crore, SBI Rs 1,000 crore, while Small Industries Development Bank of India (SIDBI) has MFIs exposure to about Rs 4,000 crore.
The Reserve Bank had in January relaxed the debt restructuring norms for the micro finance sector to enable banks to provide liquidity support to the crisis-ridden MFIs.
With the clamp down on bank loans to MFIs, the business of these companies has slowed down considerably since October last year when a string of farmer suicide cases in Andhra Pradesh led to the introduction of an ordinance to regulate the MFIs' operations in the state.
The ordinance is now passed into an Act. SKS with over 2,400 branches has more than 77 lakh members. As on December 31, 2010 amount disbursed by SKS stood at Rs 21,431 crore.
"The Board of the Company...decided against CDR route, instead will explore other possibilities of additional fund raising from various banks/financial institutions," SKS Microfinance said in a filing to the Bombay Stock Exchange (BSE).
The Board has decided against going for Corporate Debt Restructuring (CDR) route, it said.
Several banks are believed to have approached the CDR cell of RBI to restructure loans advanced by them to Micro Finance Institutions (MFIs).
Some major banks such as State Bank of India , ICICI Bank and Axis Bank are estimated to have lent over Rs 15,000 crore to MFIs. ICICI has lent around Rs 2,000 crore, SBI Rs 1,000 crore, while Small Industries Development Bank of India (SIDBI) has MFIs exposure to about Rs 4,000 crore.
The Reserve Bank had in January relaxed the debt restructuring norms for the micro finance sector to enable banks to provide liquidity support to the crisis-ridden MFIs.
With the clamp down on bank loans to MFIs, the business of these companies has slowed down considerably since October last year when a string of farmer suicide cases in Andhra Pradesh led to the introduction of an ordinance to regulate the MFIs' operations in the state.
The ordinance is now passed into an Act. SKS with over 2,400 branches has more than 77 lakh members. As on December 31, 2010 amount disbursed by SKS stood at Rs 21,431 crore.
Wednesday, March 16, 2011
HDFC sole Indian firm among world's most ethical companies
NEW YORK: India's HDFC is the only company which has managed to find a place in the world's most ethical companies' list this year.
According to the list prepared by the US-based think tank Ethisphere Institute, only one Indian firm HDFC has made a place among the 110 world's most ethical companies.
Of these companies, 36 are new to the list in 2011 and 26 companies dropped off from the last year's list.
Commenting on the achievement HDFC Vice-Chairman and CEO Keki Mistry said: "It obviously feels nice to be one of the world's most ethical company and the only one from India.
HDFC is one of the most trusted brands in the country and for a financial services company it is very important that people perceive it as ethical."
Among the companies that made a place in the list are -- online marketplace eBay, auto maker Ford Motor Company, banking giant Standard Chartered Bank, Accenture, Adobe Systems, software giant Microsoft and food and beverage firm PepsiCo.
Interestingly, the companies that have secured a berth on the list are from wide range of industries, right from banking to consumer goods to auto, retail and media.
As per the report, ethical company designation is awarded to those companies that have leading ethics and compliance programmes, particularly as compared to their industry peers.
According to the list prepared by the US-based think tank Ethisphere Institute, only one Indian firm HDFC has made a place among the 110 world's most ethical companies.
Of these companies, 36 are new to the list in 2011 and 26 companies dropped off from the last year's list.
Commenting on the achievement HDFC Vice-Chairman and CEO Keki Mistry said: "It obviously feels nice to be one of the world's most ethical company and the only one from India.
HDFC is one of the most trusted brands in the country and for a financial services company it is very important that people perceive it as ethical."
Among the companies that made a place in the list are -- online marketplace eBay, auto maker Ford Motor Company, banking giant Standard Chartered Bank, Accenture, Adobe Systems, software giant Microsoft and food and beverage firm PepsiCo.
Interestingly, the companies that have secured a berth on the list are from wide range of industries, right from banking to consumer goods to auto, retail and media.
As per the report, ethical company designation is awarded to those companies that have leading ethics and compliance programmes, particularly as compared to their industry peers.
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