NEW DELHI: Infrastructure developer Punj Lloyd today said it has bagged a Rs 114 contract from Uttar Pradesh Rajya Vidyut Utpadan Nigam for building a railway siding at the state-run utility's Anpara plant.
"It is our first-ever railway contract. The contract is scheduled to be completed within fifteen months," Punj Lloyd said in a statement.
The scope of the work includes improving ground, workshop building and construction of railway siding for supply of coal to two 500-MW thermal power plants at Anpara in the state.
"The contract is an extremely important entry point into the vital railways sector; the potential for the company henceforth is huge," S S Raju, President and CEO, Buildings and Infrastructure (India), Punj Lloyd, said.
The current order backlog for the Punj Lloyd Group on a consolidated basis, including this order, stands at Rs 21,512 crore, the statement said.
Success in my Habit
Wednesday, April 20, 2011
Mobile towers cannot come up without permissions: HC
MUMBAI: Mobile phones have become a necessity but that does not mean that cellphone towers should be put up anywhere without authorisation, the Bombay High Court remarked.
The division bench of justices Ranjana Desai and R G Ketkar was hearing a petition filed by a mobile tower company, 21st Century Infra Tele Ltd, challenging the penalty imposed on it by the Pune Municipal Corporation.
The corporation had asked the company to pay a double tax as a penalty for setting up an unauthorised mobile tower.
"You have to follow rules. Just because you are a reputed mobile phone company, you put up towers anywhere?" Justice Desai said.
The court also rapped the corporation after lawyers appearing for the petitioner said the civic body did not decide applications for permission to set up towers in time.
"Make your procedures simple. Specify what documents are required. The companies cannot be expected to wait for years," the bench said, pointing out that there were number of petitions before the court, regarding disputes between tower companies and civic bodies.
The High Court will hear the case next on April 27.
The division bench of justices Ranjana Desai and R G Ketkar was hearing a petition filed by a mobile tower company, 21st Century Infra Tele Ltd, challenging the penalty imposed on it by the Pune Municipal Corporation.
The corporation had asked the company to pay a double tax as a penalty for setting up an unauthorised mobile tower.
"You have to follow rules. Just because you are a reputed mobile phone company, you put up towers anywhere?" Justice Desai said.
The court also rapped the corporation after lawyers appearing for the petitioner said the civic body did not decide applications for permission to set up towers in time.
"Make your procedures simple. Specify what documents are required. The companies cannot be expected to wait for years," the bench said, pointing out that there were number of petitions before the court, regarding disputes between tower companies and civic bodies.
The High Court will hear the case next on April 27.
Will partner Mukesh Ambani if there's threat from ITC: Leela
NEW DELHI: The hospitality chain Leela Group Chairman C P Krishnan Nair , who is set to retire from active management this June, today said he will consider partnering Mukesh Ambani if there are hostile takeover threats from rival ITC.
"If at all, there is a threat from ITC, Mukesh is available...If at any point of time I want (a partner), Mukesh will be my ideal partner," Nair said.
He was responding to a query if the Leela Group was uncomfortable with ITC gradually increasing stake in his firm.
ITC has been slowly increasing its stake in Hotel Leelaventure Ltd. As of the quarter ended December 2010, ITC and its investment arm Russell Credit Ltd together hold 11.7 per cent stake in the company.
Nair said that while the Leela Group did not expect ITC to make any attempt for a hostile bid, "you never know in the corporate relationships".
In such a scenario, friends will come to help, he said, highlighting the personal relationship that the promoter Nair family has with senior Ambani.
Mukesh Ambani's Reliance Industries had last year picked up 14.80 per cent stake in EIH Ltd that runs the Oberoi and Trident brands of hotels and resorts.
On his succession plans, Nair---the 90-year-old hospitality veteran--- said he will be retiring from active management by June and his sons Vivek and Dinesh will be elevated.
"My son Vivek will take over as the Chairman and I will become the Chairman Emeritus. The younger son Dinesh will be the Managing Director. This will be put up for shareholders' approval at the Annual General Meeting of the company to be held in June," he said.
At present, Vivek Nair is the Vice-Chairman and Managing Director, while Dinesh Nair is the Joint Managing Director of the company.
The Nair family will together continue to run Leela and even the third generation will join the business, he added.
"I have already put my will in place. The family will continue to run the business together. My sons will have equal stake in the company and if at all, any one of them wants to exit, then the first right to buy the stake will be with the other," he said.
Nair also said that his grandchildren were already involved in the business and they would be elevated to the level of Executive Directors when the change of guard takes place in June this year.
"If at all, there is a threat from ITC, Mukesh is available...If at any point of time I want (a partner), Mukesh will be my ideal partner," Nair said.
He was responding to a query if the Leela Group was uncomfortable with ITC gradually increasing stake in his firm.
ITC has been slowly increasing its stake in Hotel Leelaventure Ltd. As of the quarter ended December 2010, ITC and its investment arm Russell Credit Ltd together hold 11.7 per cent stake in the company.
Nair said that while the Leela Group did not expect ITC to make any attempt for a hostile bid, "you never know in the corporate relationships".
In such a scenario, friends will come to help, he said, highlighting the personal relationship that the promoter Nair family has with senior Ambani.
Mukesh Ambani's Reliance Industries had last year picked up 14.80 per cent stake in EIH Ltd that runs the Oberoi and Trident brands of hotels and resorts.
On his succession plans, Nair---the 90-year-old hospitality veteran--- said he will be retiring from active management by June and his sons Vivek and Dinesh will be elevated.
"My son Vivek will take over as the Chairman and I will become the Chairman Emeritus. The younger son Dinesh will be the Managing Director. This will be put up for shareholders' approval at the Annual General Meeting of the company to be held in June," he said.
At present, Vivek Nair is the Vice-Chairman and Managing Director, while Dinesh Nair is the Joint Managing Director of the company.
The Nair family will together continue to run Leela and even the third generation will join the business, he added.
"I have already put my will in place. The family will continue to run the business together. My sons will have equal stake in the company and if at all, any one of them wants to exit, then the first right to buy the stake will be with the other," he said.
Nair also said that his grandchildren were already involved in the business and they would be elevated to the level of Executive Directors when the change of guard takes place in June this year.
Leela to raise Rs 1,950 crore via stake, asset sale to repay debt
NEW DELHI: Hospitality firm Hotel Leelaventure today said it will raise Rs 1,950 crore through sale of equity and assets, and foreign currency convertible bonds to partly repay its debt of Rs 3,800 crore.
"We expect an inflow of Rs 1,950 crore, which will be primarily used to reduce the current debt of Rs 3,800 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.
He said the company was close to concluding a preferential allotment of equity shares in the next 6-8 weeks time to private equity investors.
"There would be stake sale of about 14.95 per cent to either one or two players for about Rs 600 crore," Nair said.
The stake sale will bring down promoters' equity in the company from 55 per cent at present to about 50.5 per cent.
He, however, said the promoters will try to maintain their stake holding in the company to around 55 per cent in future through creeping acquisitions as per SEBI guidelines.
"We have also created business parks in Chennai and Bangalore next to our hotels, which we intend to sell in the next two months. The company is also building upmarket residential complexes in Pune, Hyderabad and Bangalore for selling," Nair said.
Asset sales would bring in another Rs 950 crore into the company, he added.
Besides, in the next 5-6 years the company expects to raise Rs 400 crore through FCCBs, Nair added.
The proceeds from the stake and asset sales along with that from FCCBs would be utilised to serve the current debt, he said, adding post the reduction, the company would have a debt equity ratio of 1.5:1.
Hotel Leelaventure had taken debt to the tune of Rs 3,800 crore to finance setting up of new properties, including those in Udaipur and Chennai.
The company scrip closed at Rs 43.05 per piece, up 4.36 percent from its previous close on Bombay Stock Exchange .
7.53 lakh applicants are vying for the flats, located in areas like Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli. There are one, two and three bedroom flats with the prices ranging from Rs 9 lakh to Rs Rs 1.12 crore.
The housing scheme was launched on November 25, 2010. Asked about the allegations of irregularities that had cropped up during the last draw of lots for its housing scheme, Delhi Development Authority officials had earlier said that all necessary checks and balances were in place.
"The draw is being held in Noida only due to the fact that the number of applicants and the number of flats being allotted under the scheme is high as compared to earlier schemes. CDAC has better wherewithal and expertise to conduct the draw of such a magnitude and it is not possible to transport the equipment from there," an official had said.
"We expect an inflow of Rs 1,950 crore, which will be primarily used to reduce the current debt of Rs 3,800 crore," Hotel Leelaventure Vice-Chairman and Managing Director Vivek Nair told reporters here.
He said the company was close to concluding a preferential allotment of equity shares in the next 6-8 weeks time to private equity investors.
"There would be stake sale of about 14.95 per cent to either one or two players for about Rs 600 crore," Nair said.
The stake sale will bring down promoters' equity in the company from 55 per cent at present to about 50.5 per cent.
He, however, said the promoters will try to maintain their stake holding in the company to around 55 per cent in future through creeping acquisitions as per SEBI guidelines.
"We have also created business parks in Chennai and Bangalore next to our hotels, which we intend to sell in the next two months. The company is also building upmarket residential complexes in Pune, Hyderabad and Bangalore for selling," Nair said.
Asset sales would bring in another Rs 950 crore into the company, he added.
Besides, in the next 5-6 years the company expects to raise Rs 400 crore through FCCBs, Nair added.
The proceeds from the stake and asset sales along with that from FCCBs would be utilised to serve the current debt, he said, adding post the reduction, the company would have a debt equity ratio of 1.5:1.
Hotel Leelaventure had taken debt to the tune of Rs 3,800 crore to finance setting up of new properties, including those in Udaipur and Chennai.
The company scrip closed at Rs 43.05 per piece, up 4.36 percent from its previous close on Bombay Stock Exchange .
7.53 lakh applicants are vying for the flats, located in areas like Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli. There are one, two and three bedroom flats with the prices ranging from Rs 9 lakh to Rs Rs 1.12 crore.
The housing scheme was launched on November 25, 2010. Asked about the allegations of irregularities that had cropped up during the last draw of lots for its housing scheme, Delhi Development Authority officials had earlier said that all necessary checks and balances were in place.
"The draw is being held in Noida only due to the fact that the number of applicants and the number of flats being allotted under the scheme is high as compared to earlier schemes. CDAC has better wherewithal and expertise to conduct the draw of such a magnitude and it is not possible to transport the equipment from there," an official had said.
Jammu & Kashmir gets its first ritzy 5-star hotel
SRINAGAR: In the backdrop of political uncertainty and to the annoyance of environmentalists, Jammu & Kashmir got its first five-star hotel on the hilltop at Karalsangri in Nishat. Built by Saifco Hill Crest, the new hotel will be managed by the international chain, Taj Group .
After lesser luxury hotels like the Lalit and Centaur Lake View on the banks of Dal Lake, Saifco Hill Crest Hotel, spread over six acres on the hilltop overlooking the Dal Lake has 89 rooms and six suites, including a 2,500 sq feet presidential suite. Besides, it has restaurants, spa, fitness centres, banquet facilities and a business centre.
"It took us more than two decades to complete this hotel with state-of-the-art facilities. There were many glitches along the way after it was conceived in the early 1980s," said Altaf Ahmad, partner, Saifco Group. It was only after they got into an agreement with Vivanta, a brand owned by Taj group's upscale chain, that things fructified.
"It was impossible to think that the hotel could be ready in 2010 summer when there was widespread unrest. We also had the final facelift of the hotel stopped. But now we are ready," Ahmad said.
Owing to its location on a hilltop surrounded by forests, and overlooking the Mughal gardens, the Dal lake and historical monuments around it, former governor Jagmohan had its construction stopped in 1986 for environmental reasons.
Work began again in stops and starts during Farooq Abdullah government in 1987 with Saifco getting favorable court orders.
The owner of Saifco group of industries, Saif-ud-Din, said, "The plan to build a hotel at Kralsangri was conceived by Sheikh Abdullah. Its foundation stone was laid by Farooq Abdullah and it was inaugurated by his son, Omar Abdullah."
Addressing concerns of environmentalists Saif-ud-din said the hotel area is polythene free and a no-smoking zone. Union energy minister Farooq Abdullah, who was present for the inauguration, said the hotel came up after facing a plethora of problems including insurgency. "It will help boost our tourism sector," he said.
After lesser luxury hotels like the Lalit and Centaur Lake View on the banks of Dal Lake, Saifco Hill Crest Hotel, spread over six acres on the hilltop overlooking the Dal Lake has 89 rooms and six suites, including a 2,500 sq feet presidential suite. Besides, it has restaurants, spa, fitness centres, banquet facilities and a business centre.
"It took us more than two decades to complete this hotel with state-of-the-art facilities. There were many glitches along the way after it was conceived in the early 1980s," said Altaf Ahmad, partner, Saifco Group. It was only after they got into an agreement with Vivanta, a brand owned by Taj group's upscale chain, that things fructified.
"It was impossible to think that the hotel could be ready in 2010 summer when there was widespread unrest. We also had the final facelift of the hotel stopped. But now we are ready," Ahmad said.
Owing to its location on a hilltop surrounded by forests, and overlooking the Mughal gardens, the Dal lake and historical monuments around it, former governor Jagmohan had its construction stopped in 1986 for environmental reasons.
Work began again in stops and starts during Farooq Abdullah government in 1987 with Saifco getting favorable court orders.
The owner of Saifco group of industries, Saif-ud-Din, said, "The plan to build a hotel at Kralsangri was conceived by Sheikh Abdullah. Its foundation stone was laid by Farooq Abdullah and it was inaugurated by his son, Omar Abdullah."
Addressing concerns of environmentalists Saif-ud-din said the hotel area is polythene free and a no-smoking zone. Union energy minister Farooq Abdullah, who was present for the inauguration, said the hotel came up after facing a plethora of problems including insurgency. "It will help boost our tourism sector," he said.
Engineers, Women Retain Strength at IIM-Ahmedabad
AHMEDABAD: Engineers have retained their strength at the Indian Institute of Management , Ahmedabad (IIM-A ) for the new 2011-13 batch. The percentage of women candidates , too, has been the same at 10.9% like last year in the 380-strong batch. The batch size for both the years has been the same.
IIMs traditionally see engineers dominating the list of candidates shortlisted for the two-year post-graduate programme in management course. The flagship programme has 94% engineers this year, a marginal drop from 95% admitted last year. The institute has offered seats to 3.5% students from commerce background and to 2% from science stream.
The institute has given 380 offers and has asked the candidates to take decision on joining IIM-A till May 13. CAT scores, performance in group discussion and personal interview apart from educational background form the basis for admission to the IIMs.
"This year too, engineers have performed better," IIM-A admission chairperson Professor Diptesh Ghosh told ET. The 2009-11 batch had 91% engineers and 2010-12 batch had around 95% engineers . IIM-A started its admission process on January 12 and interview rounds on February 23 that ended on March 24.
The institute has interviewed 918 students. There are 52 students who have been put on the waiting list. The institute released the list of its first offer to the students for the 2011-13 batch on Monday. For the 2009-11 batch, the institute had the highest proportion of 19% women students , a significant jump from the 6% admitted in the year before (2008-10 ).
"There would be a number of students who would secure offers from more than one IIM and those joining elsewhere will be replaced from the waiting list," Ghosh said. This year almost 70% have work experience. The number of experienced candidates stood at around 60% in the previous two batches.
"The average age of the batch is 23 years and 19% of the students have experience of more than two years," Ghosh said. This year, IIM-A , IIM-Bangalore and IIM-Calcutta coordinated with each other to hold interviews at the same centre for students who received interview calls from all the three IIMs. "Earlier , they had to visit their respective cities. This year, the coordination helped them save time and money," he said.
IIMs traditionally see engineers dominating the list of candidates shortlisted for the two-year post-graduate programme in management course. The flagship programme has 94% engineers this year, a marginal drop from 95% admitted last year. The institute has offered seats to 3.5% students from commerce background and to 2% from science stream.
The institute has given 380 offers and has asked the candidates to take decision on joining IIM-A till May 13. CAT scores, performance in group discussion and personal interview apart from educational background form the basis for admission to the IIMs.
"This year too, engineers have performed better," IIM-A admission chairperson Professor Diptesh Ghosh told ET. The 2009-11 batch had 91% engineers and 2010-12 batch had around 95% engineers . IIM-A started its admission process on January 12 and interview rounds on February 23 that ended on March 24.
The institute has interviewed 918 students. There are 52 students who have been put on the waiting list. The institute released the list of its first offer to the students for the 2011-13 batch on Monday. For the 2009-11 batch, the institute had the highest proportion of 19% women students , a significant jump from the 6% admitted in the year before (2008-10 ).
"There would be a number of students who would secure offers from more than one IIM and those joining elsewhere will be replaced from the waiting list," Ghosh said. This year almost 70% have work experience. The number of experienced candidates stood at around 60% in the previous two batches.
"The average age of the batch is 23 years and 19% of the students have experience of more than two years," Ghosh said. This year, IIM-A , IIM-Bangalore and IIM-Calcutta coordinated with each other to hold interviews at the same centre for students who received interview calls from all the three IIMs. "Earlier , they had to visit their respective cities. This year, the coordination helped them save time and money," he said.
Ahluwalia Contracts bags Rs 535 cr projects
MUMBAI: Ahluwalia Contracts (India) has bagged orders worth Rs 535 crore from different vendors for construction related projects .
"The company has secured new orders worth Rs 141.50 crore and Rs 184 crore for construction of residential and commercial buildings in major cities from leading developers," Ahluwalia Contracts said in a filing to the Bombay Stock Exchange (BSE).
Further, the company has obtained an order valued at Rs 142.18 crore for construction of hotels and a Rs 34-crore order for construction of institutional buildings.
A Rs 33.02-crore order has also been bagged in the services segment, it added.
Meanwhile, shares of the company were trading at Rs 137, up by 2.47 per cent from the previous close on the BSE.
"The company has secured new orders worth Rs 141.50 crore and Rs 184 crore for construction of residential and commercial buildings in major cities from leading developers," Ahluwalia Contracts said in a filing to the Bombay Stock Exchange (BSE).
Further, the company has obtained an order valued at Rs 142.18 crore for construction of hotels and a Rs 34-crore order for construction of institutional buildings.
A Rs 33.02-crore order has also been bagged in the services segment, it added.
Meanwhile, shares of the company were trading at Rs 137, up by 2.47 per cent from the previous close on the BSE.
Lupin gets USFDA approval for diabetes drug
NEW DELHI: Drug maker Lupin today said it has received tentative approval from US health regulator for its generic Metformin Hydrochloride extended-release tablets, used in the treatment of diabetes, in the American market.
The company's US arm Lupin Pharmaceuticals Inc has received approval from the US Food and Drug Administration for Metformin Hydrochloride extended-release tablets in the strengths of 500 mg and 1000 mg, Lupin said in a statement.
The company's product is generic equivalent of Andrx Labs LLC's Fortamet 500 mg and 1000 mg tablets and is indicated as an supplement to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus, it said.
Commenting on the approval, Lupin Pharmaceuticals CEO Vinita Gupta said: "This product approval demonstrates our commitment to enhance our generic pipeline, leveraging our development and manufacturing strengths in extended-release dosage forms."
The company believes it is the first applicant to file an abbreviated new drug application for Fortamet 500 mg and 1,000 mg and that could translate into 180 days of marketing exclusivity for its product.
"Upon receiving final approval by the FDA, Lupin believes that the 500 mg and 1,000 mg strengths of its product will be entitled to 180 days of marketing exclusivity," it said.
As per IMS Health data, annual sales for Fortamet in the US stood at USD 83 million for the 12 months ending December, 2010, it added.
Shares of Lupin were today trading at Rs 411.90 on the Bombay Stock Exchange in the late afternoon trade, up 0.99 per cent from its previous close.
The company's US arm Lupin Pharmaceuticals Inc has received approval from the US Food and Drug Administration for Metformin Hydrochloride extended-release tablets in the strengths of 500 mg and 1000 mg, Lupin said in a statement.
The company's product is generic equivalent of Andrx Labs LLC's Fortamet 500 mg and 1000 mg tablets and is indicated as an supplement to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus, it said.
Commenting on the approval, Lupin Pharmaceuticals CEO Vinita Gupta said: "This product approval demonstrates our commitment to enhance our generic pipeline, leveraging our development and manufacturing strengths in extended-release dosage forms."
The company believes it is the first applicant to file an abbreviated new drug application for Fortamet 500 mg and 1,000 mg and that could translate into 180 days of marketing exclusivity for its product.
"Upon receiving final approval by the FDA, Lupin believes that the 500 mg and 1,000 mg strengths of its product will be entitled to 180 days of marketing exclusivity," it said.
As per IMS Health data, annual sales for Fortamet in the US stood at USD 83 million for the 12 months ending December, 2010, it added.
Shares of Lupin were today trading at Rs 411.90 on the Bombay Stock Exchange in the late afternoon trade, up 0.99 per cent from its previous close.
Banking on the future with stem cells
PUNE: How do you improve your child's life quality when she turns 70 by investing Rs 1 lakh now? We are not talking insurance, but about creation of a stem cell bank when the child was young and accessed when she grows old.
Deepak Ghaisas -- former chief executive and finance head of i-flex -- is doing just that with his biotechnology firm Stemade. Stemade banks stem cells from your child's teeth when she is eight - or from the wisdom tooth when she is a little older - and allow it to be used even 50 years later.
A bean counter at heart, becoming a biotech entrepreneur is Ghaisas' third avatar, after starting off as a chartered accountant in a food firm and then moving to a very successful stint in technology services. His holding company is called Gencoval (generating companion value, in short) Strategic Services, which runs three subsidiaries: Stemade, Healthbridge, a business process re-engineering programme for hospitals and GCVLife, that is working on a technology that addresses diseases resulting from sleep apnoea.
He explains the stem cell foray in pure accounting terms: "This is the best kind of derivate product, where the downside is capped at Rs 1 lakh, while the upside is huge," Ghaisas said adding "we are addressing health and disease management using solutions based on stem cells and delivered through hospitals."
Ghaisas' logic for a biotech foray is that India is the market for such therapeutic products, unlike information technology.
"The market for IT remains the US, the Indian IT market is much smaller. However, when it comes to biotech and healthcare, the market is here, in India. The delivery is expensive now but that it should come down," he says. Stemade's products will eventually be delivered through hospitals while Healthbridge is working on improving process efficiencies.
Ghaisas, however, is not focusing on India alone: he plans to offer storage services for stem cells in India for customers in Singapore shortly and later for customers in Middle East too. "India can become the world's stem cell storage centre," he says.
The initial Rs 10-crore investment has been made by Ghaisas himself. And he might need venture capital or private equity of around Rs 40-45 crore when he sets up a research centre for which he is scouting for land in the Pune region.
In the four cities that Stemade has been launched, they have 300 registrations and 100 teeth banked. Ghaisas now plans to take the company to another six cities. "We charge Rs 10,000 at the time of registration and 50% of the total amount, Rs 45,000 at the time of the actual deposition of the teeth.
The balance, which is another Rs 45,000, is paid a month after the extraction, when the certification process is completed. We tell parents that if the child is 10-year-old, it would amount to paying Rs 1,000 a month till the child turns 21, although we take the money upfront. After 21, they pay Rs 6,000 annually" Ghaisas said.
There is another, bigger market that opens up with this, that of genomics. Around 10% stem cells have been found to match parents while the success rate in matching siblings is 30-40% but there is also an opportunity to generate matches for people around the world.
A database is being created under the genetic registry and while there are six types of genes, a match of even four of the six is alright with doctors. Ghaisas said he was looking at office space without divulging more.
For Stemade, the focus is on the autologous stem cell market, where a patient is treated using his/her own stem cells. This strategy is much in sync with the global focus on personalised medicine.
"There has been no blockbuster drug which is worth $1 billion, after Viagra. And there is a drying up of the pipeline for new molecule development in the pharma industry. Pharma companies are now eyeing biotechnology, just look at the acquisitions they are making," Ghaisas says explaining his new bet.
These autologous cells are multipotential stem cells which means that they can create tissue, unlike umbilical cord stem cells which are used to treat blood cell- related diseases. For storage purposes, the teeth are broken under a proprietary technology of French firm, Institute Clinident Biopharma, and stored at LifeCell's lab in Chennai for the next 40-50 years.
Deepak Ghaisas -- former chief executive and finance head of i-flex -- is doing just that with his biotechnology firm Stemade. Stemade banks stem cells from your child's teeth when she is eight - or from the wisdom tooth when she is a little older - and allow it to be used even 50 years later.
A bean counter at heart, becoming a biotech entrepreneur is Ghaisas' third avatar, after starting off as a chartered accountant in a food firm and then moving to a very successful stint in technology services. His holding company is called Gencoval (generating companion value, in short) Strategic Services, which runs three subsidiaries: Stemade, Healthbridge, a business process re-engineering programme for hospitals and GCVLife, that is working on a technology that addresses diseases resulting from sleep apnoea.
He explains the stem cell foray in pure accounting terms: "This is the best kind of derivate product, where the downside is capped at Rs 1 lakh, while the upside is huge," Ghaisas said adding "we are addressing health and disease management using solutions based on stem cells and delivered through hospitals."
Ghaisas' logic for a biotech foray is that India is the market for such therapeutic products, unlike information technology.
"The market for IT remains the US, the Indian IT market is much smaller. However, when it comes to biotech and healthcare, the market is here, in India. The delivery is expensive now but that it should come down," he says. Stemade's products will eventually be delivered through hospitals while Healthbridge is working on improving process efficiencies.
Ghaisas, however, is not focusing on India alone: he plans to offer storage services for stem cells in India for customers in Singapore shortly and later for customers in Middle East too. "India can become the world's stem cell storage centre," he says.
The initial Rs 10-crore investment has been made by Ghaisas himself. And he might need venture capital or private equity of around Rs 40-45 crore when he sets up a research centre for which he is scouting for land in the Pune region.
In the four cities that Stemade has been launched, they have 300 registrations and 100 teeth banked. Ghaisas now plans to take the company to another six cities. "We charge Rs 10,000 at the time of registration and 50% of the total amount, Rs 45,000 at the time of the actual deposition of the teeth.
The balance, which is another Rs 45,000, is paid a month after the extraction, when the certification process is completed. We tell parents that if the child is 10-year-old, it would amount to paying Rs 1,000 a month till the child turns 21, although we take the money upfront. After 21, they pay Rs 6,000 annually" Ghaisas said.
There is another, bigger market that opens up with this, that of genomics. Around 10% stem cells have been found to match parents while the success rate in matching siblings is 30-40% but there is also an opportunity to generate matches for people around the world.
A database is being created under the genetic registry and while there are six types of genes, a match of even four of the six is alright with doctors. Ghaisas said he was looking at office space without divulging more.
For Stemade, the focus is on the autologous stem cell market, where a patient is treated using his/her own stem cells. This strategy is much in sync with the global focus on personalised medicine.
"There has been no blockbuster drug which is worth $1 billion, after Viagra. And there is a drying up of the pipeline for new molecule development in the pharma industry. Pharma companies are now eyeing biotechnology, just look at the acquisitions they are making," Ghaisas says explaining his new bet.
These autologous cells are multipotential stem cells which means that they can create tissue, unlike umbilical cord stem cells which are used to treat blood cell- related diseases. For storage purposes, the teeth are broken under a proprietary technology of French firm, Institute Clinident Biopharma, and stored at LifeCell's lab in Chennai for the next 40-50 years.
Biocon's drug development partner Optimer receives US patent for Fidaxomicin
BANGALORE: Bangalore-based biotechnogy firm Biocon's drug development partner Optimer has received US patent for drug Fidaxomicin. The drug is used to treat diarrhea and intestinal diseases.
"We are the single source of supply of drug substance for Optimer which will certainly boost Biocon's sales this coming fiscal," Kiran Mazumdar-Shaw, CMD of Biocon, said. "I would say that the significant impact will be felt from Q1 FY12," she added.
Analysts expect the company to start the supply within a couple of months.
The closest competitor for Fidaxomicin is vancomycin - an antibiotec injectable manufactured and supplied by Strides Arcolabs . The market size is expected to be around $350 million but the margins for Biocon's drug could be bigger because Fidaxomicin is a novel product while vancomycin is a generic one, analysts said.
A generic drug is produced and distributed widely without patent protection and tends to be cheaper than the discovered product. It contains the same active ingredients as the original formulation. For example, paracetamol is the active ingredient of crocin. Paracetamol can therefore be the generic when sold without the brand name as well. The patent lease for Fidoxamicin is expected to last till March 2027.
Biocon shares rose 3% to end at 330 in a weak market.
"We are the single source of supply of drug substance for Optimer which will certainly boost Biocon's sales this coming fiscal," Kiran Mazumdar-Shaw, CMD of Biocon, said. "I would say that the significant impact will be felt from Q1 FY12," she added.
Analysts expect the company to start the supply within a couple of months.
The closest competitor for Fidaxomicin is vancomycin - an antibiotec injectable manufactured and supplied by Strides Arcolabs . The market size is expected to be around $350 million but the margins for Biocon's drug could be bigger because Fidaxomicin is a novel product while vancomycin is a generic one, analysts said.
A generic drug is produced and distributed widely without patent protection and tends to be cheaper than the discovered product. It contains the same active ingredients as the original formulation. For example, paracetamol is the active ingredient of crocin. Paracetamol can therefore be the generic when sold without the brand name as well. The patent lease for Fidoxamicin is expected to last till March 2027.
Biocon shares rose 3% to end at 330 in a weak market.
Subscribe to:
Posts (Atom)