NEW DELHI: Bill and Melinda Gates Foundation will fund two Indian firms- Serum Institute of India and Bharat Biotech- to develop and sell vaccines for pneumonia and diarrhea that kills thousands of children every year, at less than half the current market price.
"The foundation will fund part of the cost for the clinical trials," Cyrus Poonawalla, chairman and MD of Serum Institute of India told ET. He did not say how much money the foundation will contribute but it costs about $10-20 million and $20-30 million to conduct clinical studies for pneumococcal and rotavirus vaccine, respectively. Both Serum Institute and Bharat Biotech are privately held local firms and will separately develop their vaccines.
Bill Gates, co-chair of the Bill and Melinda Gates Foundation and co-founder of IT giant Microsoft, said on Thursday in a media briefing, "We are giving grants to Bharat Biotech for a new rotavirus vaccine." According to estimates, nearly six lakh children die of rotavirus that causes diarrhea among infants each year globally.
The philanthropic organisation will fund as much as $30 million in the phase III trials for rotavirus vaccine that will allow firms like Serum to offer the vaccine 'at the best possible price'. Gates did not say how much of this money will be separately granted to the two Indian vaccine makers.
Krishna Ella, managing director of Bharat Biotech, said it has already started phase III trials of the rotavirus vaccine being developed from an indigenously discovered human strain. He declined to share details.
While both the local firms will work on developing cost rotavirus vaccines , Serum will also be involved in the vaccine for pneumonia.
Under the agreement with Serum, the country's largest vaccine maker will set up the manufacturing plant on its own and supply the two vaccines globally at an affordable price. The company plans to launch the drug in three years at less than half the prices of exiting brands marketed by American drugmaker Merck & Co and UK-based GlaxoSmithKline sell rotavirus vaccines. Some reports say existing drugs cost about $200-250 per dosage in North America.
"We will have a capacity of 80-100 million dosage for each vaccine," said Serum Institute's Poonawalla. The Pune-based firm has been supplying other vaccines for diseases such as menangitis besides pentavalent vaccines at just about one-fourth the price of its competitors, he said. The vaccines will be supplied to international procuring and supply agencies such as the UNICEF. These sourcing agencies can buy a larger number of such low cost vaccines with the same money and thus supply more dosages for underpriviledged children in other needy countries.
Bill Gates said India will be a source of lot of important innovations because it has great scientists and universities with understanding of the local needs. The Foundation plans to work with partners in India at basic research level, drug and vaccine development, manufacture of drugs and vaccines to leverage its low-cost capabilities.
Success in my Habit
Wednesday, April 20, 2011
Tata Steel signs pact with Rio Tinto on HIsarna iron smelting
NEW DELHI: Tata Steel today said it has signed a licensing agreement with mining major Rio Tinto for commercial development of environment-friendly direct iron smelting process , called HIsarna.
"The agreement covers how both parties will work together, sharing their existing knowledge of the two technologies that are combined in the new process," it said in a statement.
The HIsarna iron-making process consists of cyclone pre-reduction technology (CCF), owned by Tata Steel, and bath smelting technology (HIsmelt), owned by Rio Tinto.
"This combination offers excellent opportunities for the collection and geological storage of carbon-di-oxide, ability to utilise lower-cost raw material feeds and the prospect of energy savings through the elimination of stages in the ironmaking process," the statement added.
The HIsarna technology has long-term potential to replace conventional blast furnaces, coke ovens and sinter plants and to reduce carbon-di-oxide emissions by more than 50 per cent if combined with Carbon Capture and Storage (CCS).
Funded jointly by the consortium of European steelmakers' ULCOS, the European Commission and the Dutch Economic Affairs Ministry, a HIsarna pilot plant is being commissioned at Tata Steel's IJmuiden steelworks in the Netherlands.
The six lakh tonne per annum plant is intended to allow the two constituent technologies to be tested in combination.
"The agreement covers how both parties will work together, sharing their existing knowledge of the two technologies that are combined in the new process," it said in a statement.
The HIsarna iron-making process consists of cyclone pre-reduction technology (CCF), owned by Tata Steel, and bath smelting technology (HIsmelt), owned by Rio Tinto.
"This combination offers excellent opportunities for the collection and geological storage of carbon-di-oxide, ability to utilise lower-cost raw material feeds and the prospect of energy savings through the elimination of stages in the ironmaking process," the statement added.
The HIsarna technology has long-term potential to replace conventional blast furnaces, coke ovens and sinter plants and to reduce carbon-di-oxide emissions by more than 50 per cent if combined with Carbon Capture and Storage (CCS).
Funded jointly by the consortium of European steelmakers' ULCOS, the European Commission and the Dutch Economic Affairs Ministry, a HIsarna pilot plant is being commissioned at Tata Steel's IJmuiden steelworks in the Netherlands.
The six lakh tonne per annum plant is intended to allow the two constituent technologies to be tested in combination.
L&T to seek shareholders' nod to demerge electrical business
NEW DELHI: Leading private infrastructure firm Larsen and Toubro today said it has sought shareholders' approval to transfer its electrical and automation business to a subsidiary.
"The Board of Directors of the company at its meeting held on April 6, 2011, has approved seeking of shareholders approval for transfer of the Electrical & Automation (E&A) Business to a subsidiary and / or associate company or to any other entity," the company said in a regulatory filing.
The filing added that the restructuring will be done as per the relevant sections and rules of the Companies Act, 1956.
The company in a separate notice to shareholders today said that the proposed restructuring would not include the medical equipment business.
In January, Larsen and Toubro group had announced that it would restructure its operations into nine independent entities, including the electrical and automation business.
According to media reports, the company is planning to sell this division and is in talks with Schneider Electric and Eaton Corporation. The reports also suggested that L&T is looking at valuation of Rs 12,000-14,000 crore for the electrical and automation business.
This could not be verified independently with Larsen. Bank of America Merrill Lynch recently valued Larsen's Electrical and Automation business at about Rs 8,900 crore.
Industry experts said that L&T is trying to sell its non-core businesses and wants to focus more on engineering and construction segment which accounted for more than 85 per cent of sales in 2009-10 at Rs 31,650 crore.
On the other hand, Electrical and Automation's (formerly Electrical and Electronics) gross sales were reported at Rs 3675 crore with profit before interest and tax (PBIT).
The proposed to be demerged business of the L&T, which employs approximately 5328 persons, has manufacturing facilities at Mumbai, Ahmednagar and at several locations abroad, while its portfolio covers a big range of electrical equipments, including low and medium-voltage switch-gears.
Following the announcement of the news, scrips of the company were up by 1.62 per cent today on the Bombay Stock Exchange, at Rs 1,706.80 apiece.
"The Board of Directors of the company at its meeting held on April 6, 2011, has approved seeking of shareholders approval for transfer of the Electrical & Automation (E&A) Business to a subsidiary and / or associate company or to any other entity," the company said in a regulatory filing.
The filing added that the restructuring will be done as per the relevant sections and rules of the Companies Act, 1956.
The company in a separate notice to shareholders today said that the proposed restructuring would not include the medical equipment business.
In January, Larsen and Toubro group had announced that it would restructure its operations into nine independent entities, including the electrical and automation business.
According to media reports, the company is planning to sell this division and is in talks with Schneider Electric and Eaton Corporation. The reports also suggested that L&T is looking at valuation of Rs 12,000-14,000 crore for the electrical and automation business.
This could not be verified independently with Larsen. Bank of America Merrill Lynch recently valued Larsen's Electrical and Automation business at about Rs 8,900 crore.
Industry experts said that L&T is trying to sell its non-core businesses and wants to focus more on engineering and construction segment which accounted for more than 85 per cent of sales in 2009-10 at Rs 31,650 crore.
On the other hand, Electrical and Automation's (formerly Electrical and Electronics) gross sales were reported at Rs 3675 crore with profit before interest and tax (PBIT).
The proposed to be demerged business of the L&T, which employs approximately 5328 persons, has manufacturing facilities at Mumbai, Ahmednagar and at several locations abroad, while its portfolio covers a big range of electrical equipments, including low and medium-voltage switch-gears.
Following the announcement of the news, scrips of the company were up by 1.62 per cent today on the Bombay Stock Exchange, at Rs 1,706.80 apiece.
L&T to hive off electrical & automation business
MUMBAI: Larsen & Toubro will hive off its electrical and automation business as a part of its restructuring, the company said on Tuesday.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
LandT, Bhel to gain from new PGCIL norm
MUMBAI: Competition for high-voltage power sub-station projects is heating up after state-run Power Grid Corporation of India (PGCIL) altered the eligibility criteria for the bidding process for the segment.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
GMR Infra eyes $150 mn private equity cash
BANGALORE: GMR Infrastructure Ltd , which develops airports and power projects, is looking to raise $150 million through private equity for its airport arm, its group chief financial officer said on Tuesday.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
KEC International bags Rs 550-cr orders from India, Brazil
NEW DELHI: RPG Group company KEC International today said it has bagged orders worth Rs 550 crore from India and Brazil for the construction of transmission network.
"The company has secured a turnkey contract for construction of transmission lines from Maharashtra State Electricity Transmission Company Ltd (Mahatransco)," KEC International said in a statement.
Total order value is Rs 367 crore and the completion period is 18 months, the statement said.
SAE Towers, the wholly-owned subsidiary of KEC International has secured Rs 183 crore tower supply order in Brazil.
"We are seeing huge demand for transmission towers in American markets, KEC and SAE Towers have secured total Rs 1,350 crore tower supply orders post acquisition," Ramesh Chandak, MD and CEO, KEC International said.
Shares of KEC International were trading at Rs 88.80 in the afternoon trade on the Bombay Stock Exchange today, up 3.32 per cent from its previous close.
"The company has secured a turnkey contract for construction of transmission lines from Maharashtra State Electricity Transmission Company Ltd (Mahatransco)," KEC International said in a statement.
Total order value is Rs 367 crore and the completion period is 18 months, the statement said.
SAE Towers, the wholly-owned subsidiary of KEC International has secured Rs 183 crore tower supply order in Brazil.
"We are seeing huge demand for transmission towers in American markets, KEC and SAE Towers have secured total Rs 1,350 crore tower supply orders post acquisition," Ramesh Chandak, MD and CEO, KEC International said.
Shares of KEC International were trading at Rs 88.80 in the afternoon trade on the Bombay Stock Exchange today, up 3.32 per cent from its previous close.
Stanchart, Jacob Ballas, Old Lane to invest $150 mn in GMR airport business
Bangalore based GMR Group is all set to raise $150 million from three PE firms. A consortium of three PE firms that include, Standard Charted Bank's private equity arm, Jacob Ballas & Old Lane will be investing in the company according to two sources familiar with the deal.
This is the second round of private equity fund raising by GMR for its airport arm, GMR Airports Holding. Last month, it had raised $200 million from SBI Macquarie Infrastructure Fund .
The company is awaiting government approval for the deal. According to the current regulations, any investment of or above Rs 1,200 crore in the aviation sector needs government approval. Since SBI Macquarie's investment was through an offshore vehicle, the new deal will breach the upper limit. However sources said that the company is optimistic that it will get the necessary approval.
The investments would be in the form of a compulsorily convertible structured product that will be convertible when the unit goes public. The private equity investment by SBI Macquarie was also through compulsory convertible preference shares.
'The approval process is underway. I am bond by the confidentiality agreement, so I won't comment on the names. As if now we are waiting for the FIBP approval.' said A Subba, chief financial officer of GMR Infra.
Standard Charted Bank declined to comment on the story.
GMR Airport Holdings operates two airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul). The airport arm accounts for as much as 46 per cent of GMR Infra's revenues. The private equity investment will be used to develop new projects.
GMR Infra has been battling a high debt of around Rs 15,300 crore, while its airport business itself has a debt of around Rs 9,200 crore. The fresh equity infusion could come handy in bringing down the company's debt-equity ratio.
This is the second round of private equity fund raising by GMR for its airport arm, GMR Airports Holding. Last month, it had raised $200 million from SBI Macquarie Infrastructure Fund .
The company is awaiting government approval for the deal. According to the current regulations, any investment of or above Rs 1,200 crore in the aviation sector needs government approval. Since SBI Macquarie's investment was through an offshore vehicle, the new deal will breach the upper limit. However sources said that the company is optimistic that it will get the necessary approval.
The investments would be in the form of a compulsorily convertible structured product that will be convertible when the unit goes public. The private equity investment by SBI Macquarie was also through compulsory convertible preference shares.
'The approval process is underway. I am bond by the confidentiality agreement, so I won't comment on the names. As if now we are waiting for the FIBP approval.' said A Subba, chief financial officer of GMR Infra.
Standard Charted Bank declined to comment on the story.
GMR Airport Holdings operates two airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul). The airport arm accounts for as much as 46 per cent of GMR Infra's revenues. The private equity investment will be used to develop new projects.
GMR Infra has been battling a high debt of around Rs 15,300 crore, while its airport business itself has a debt of around Rs 9,200 crore. The fresh equity infusion could come handy in bringing down the company's debt-equity ratio.
IRB Infra bags Rs 3,600-cr NHAI project in Gujarat
MUMBAI: Construction and engineering firm IRB Infrastructure Developers Ltd on Friday said it has bagged the Rs 3,600-crore first ultra mega project of National Highway Authority of India (NHAI).
The company has emerged as the preferred bidder for six-laning of Ahmedabad to Vadodara section of National Highway-8 on Design Build Finance Operate Transfer (DBFOT) Toll basis, IRB Infrastructure Developers said in a filing with the Bombay Stock Exchange.
The project involves building over 102 km of the highway and improving another over 93 km stretch of the existing Ahmedabad Vadodara Expressway under Phase-V, it said. The project, costing approximately Rs 3600 crore, would be built in three years under the terms of the contract, it said.
IRB would get tolling rights on Ahmedabad Vadodara expressway from the appointed date and has a concession period of 25 years. The premium offered to NHAI in the first year is Rs 309.60 crore which will increase by 5 per cent YoY, it added.
The work involves upgradation of existing section of NH-8 between Ahmedabad and Vadodara from existing two-lane highway to a six-lane super expressway and value addition to the existing Ahmedabad Vadodara Expressway, it said.
Shares of the company closed today at Rs 213.65 on the BSE, up 1.11 per cent from its previous close.
The company has emerged as the preferred bidder for six-laning of Ahmedabad to Vadodara section of National Highway-8 on Design Build Finance Operate Transfer (DBFOT) Toll basis, IRB Infrastructure Developers said in a filing with the Bombay Stock Exchange.
The project involves building over 102 km of the highway and improving another over 93 km stretch of the existing Ahmedabad Vadodara Expressway under Phase-V, it said. The project, costing approximately Rs 3600 crore, would be built in three years under the terms of the contract, it said.
IRB would get tolling rights on Ahmedabad Vadodara expressway from the appointed date and has a concession period of 25 years. The premium offered to NHAI in the first year is Rs 309.60 crore which will increase by 5 per cent YoY, it added.
The work involves upgradation of existing section of NH-8 between Ahmedabad and Vadodara from existing two-lane highway to a six-lane super expressway and value addition to the existing Ahmedabad Vadodara Expressway, it said.
Shares of the company closed today at Rs 213.65 on the BSE, up 1.11 per cent from its previous close.
NTC eyes Rs 2,000 cr sales turnover by 2013-14
NEW DELHI: State-owned National Textiles Corporation (NTC) today said its sales turnover is likely to touch the Rs 2,000-crore mark by 2013-14 from Rs 675 crore in last fiscal.
"We aim to Rs 2,000 crore turnover from core business by 2013-14. The way we are moving, it is not an impossible task," NTC Chairman K Ramachandran Pillai told PTI.
NTC had reoported nearly four-fold increase in its total income in FY'11 to Rs 2,741 crore. However, a lion's share in that (Rs 2,011 crore) was contributed by proceeds of sales of mill lands in Mumbai and Ahmedabad.
Revenue from its core operation though grew by 40 per cent over the previous fiscal to Rs 675 crore.
Pillai said decks are ready for the company to move from a single product firm (yarn) to the entire spectrum of textile business -- spinning, processing, garmenting and weaving.
Apart from spending Rs 1,000 crore capex in the current fiscal to jack up spinning capacity to 7.8 lakh spindles from 6.4 lakh now, NTC is also set to expand its business in the ready-made garment business by this fiscal-end.
"We will produce garments in our integrated units in Hassan (Karnataka) and in Amravati (Maharastra)," Pillai said.
Sensing that the expansion into the growing business will provide the much-needed boost on its topline, NTC also plans to revamp its 92 retail outlets, 37 of which are profit-making now.
The company would also invest Rs 425 crore in association with a joint venture partner to foray into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and infrastructure sectors.
Pillai said the joint venture firm would set up two units -- one each in Northern and Southern India -- and the land required for putting up the plants have already been acquired.
"We aim to Rs 2,000 crore turnover from core business by 2013-14. The way we are moving, it is not an impossible task," NTC Chairman K Ramachandran Pillai told PTI.
NTC had reoported nearly four-fold increase in its total income in FY'11 to Rs 2,741 crore. However, a lion's share in that (Rs 2,011 crore) was contributed by proceeds of sales of mill lands in Mumbai and Ahmedabad.
Revenue from its core operation though grew by 40 per cent over the previous fiscal to Rs 675 crore.
Pillai said decks are ready for the company to move from a single product firm (yarn) to the entire spectrum of textile business -- spinning, processing, garmenting and weaving.
Apart from spending Rs 1,000 crore capex in the current fiscal to jack up spinning capacity to 7.8 lakh spindles from 6.4 lakh now, NTC is also set to expand its business in the ready-made garment business by this fiscal-end.
"We will produce garments in our integrated units in Hassan (Karnataka) and in Amravati (Maharastra)," Pillai said.
Sensing that the expansion into the growing business will provide the much-needed boost on its topline, NTC also plans to revamp its 92 retail outlets, 37 of which are profit-making now.
The company would also invest Rs 425 crore in association with a joint venture partner to foray into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and infrastructure sectors.
Pillai said the joint venture firm would set up two units -- one each in Northern and Southern India -- and the land required for putting up the plants have already been acquired.
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