New Delhi: Internet is changing our lives, the way we work, shop, search for information, communicate, and meet people. Two billion people are now connected to the internet, and this number is growing by 200 million a year. But the magnitude of the economic impact of internet-related activities is not obvious.
A new McKinsey study finds that the internet has delivered significant economic growth, created swathes of jobs and created wealth.
Using an approach based on internet-enabled consumption patterns by individuals, businesses, and governments, the study finds that the internet contributes more to GDP than agriculture, energy, and several other traditional sectors do in many countries.
In India , the internet contributed 5% to GDP growth in the past 5 years compared with the average 3% for Bric economies, says the study.
Here is how internet contributes to growth:
Companies are able to keep costs down, target customers better and bring goods and services to markets around the world much more easily.
Individuals are able to compare prices, search hard-to-find items or information, communicate and learn in new, improved ways.
Governments can serve citizens much more quickly and at a much lower cost through e-governance.
Success in my Habit
Tuesday, May 31, 2011
India-Africa ties get stronger
New Delhi: The Ethiopian Government has offered a substantial share of its 3 million-hectare farm land to Indian entrepreneurs. This was declared by Meles Zenawi, Prime Minister of Ethiopia, at a press conference in Addis Ababa.
The Prime Minister of Ethiopia said that this will bring capital, technology, infrastructure and jobs to the rural areas of the country. This offer is expected to increase the quantum of trade between the two countries and the Indian presence would add value to Ethiopian products. "India has promised to invest in the textile sector and this would hugely help our local industry," said the Ethiopian Prime Minister. Indian investors have already committed US$ 4.7 billion investment in the farm sector of Ethiopia.
Moreover, the Prime Minister of India, Dr Manmohan Singh, has said at the 2nd Africa-India Forum Summit that, “We should encourage trade and investment flows as well as transfer of technology. Private sector should be fully involved in the efforts to integrate our economies.”
The Indian Government is also looking to unveil a new policy to promote Indian companies in the International markets.
The Prime Minister of Ethiopia said that this will bring capital, technology, infrastructure and jobs to the rural areas of the country. This offer is expected to increase the quantum of trade between the two countries and the Indian presence would add value to Ethiopian products. "India has promised to invest in the textile sector and this would hugely help our local industry," said the Ethiopian Prime Minister. Indian investors have already committed US$ 4.7 billion investment in the farm sector of Ethiopia.
Moreover, the Prime Minister of India, Dr Manmohan Singh, has said at the 2nd Africa-India Forum Summit that, “We should encourage trade and investment flows as well as transfer of technology. Private sector should be fully involved in the efforts to integrate our economies.”
The Indian Government is also looking to unveil a new policy to promote Indian companies in the International markets.
Advanced GSAT-8 satellite launched successfully
Bengaluru: India's advanced communication satellite, GSAT-8, was successfully launched at 2:08 am (IST) today by the Ariane-V launch vehicle of Arianespace from Kourou, French Guiana, in South America. Ariane V placed the GSAT-8 into the intended Geosynchronous Transfer Orbit (GTO) of 35,861 km apogee and 258 km perigee.
Isro’s Master Control Facility (MCF) at Hassan in Karnataka acquired the signals from GSAT-8 satellite immediately after the injection, according to a statement from Isro. Initial checks on the satellite have indicated normal health of the satellite.
“Preparations are underway for the firing of 440 Newton Liquid Apogee Motor (LAM) during the third orbit of the satellite on May 22, at 3:58 am (IST) as a first step towards taking the satellite to its geostationary orbital home,” the statement added.
The GSAT-8 will improve direct to home TV broadcast services. Weighing about 3100 Kg at lift-off, GSAT-8 is configured to carry 24 high power transponders in Ku-band and a two-channel GPS Aided Geo Augmented Navigation (GAGAN) payload operating in L1 and L5 bands.
The 24 Ku band transponders will augment the capacity in the Insat system. The GAGAN payload provides the Satellite Based Augmentation System (SBAS), through which the accuracy of the positioning information obtained from the GPS Satellite is improved by a network of ground based receivers and made available to the users in the country through the geostationary satellites.
Prime Minister Manmohan Singh has applauded the efforts of the Department of Space for the successful launch of advanced communication satellite GSAT-8 for improving in an elliptical geo-synchronous transfer orbit early Saturday by the Ariane-VA-202 rocket.
Within minutes, the space agency’s master control facility (MCF) at Hassan, about 180 km from Bangalore, identified the presence of GSAT-8 in the geo-synchronous transfer orbit (GTO).
Responding to the news, the official Isro spokesperson claimed MCF will conduct a test to track the health parameters of the payloads by June 1 so that it will be accessed by DTH services from July 1
Isro’s Master Control Facility (MCF) at Hassan in Karnataka acquired the signals from GSAT-8 satellite immediately after the injection, according to a statement from Isro. Initial checks on the satellite have indicated normal health of the satellite.
“Preparations are underway for the firing of 440 Newton Liquid Apogee Motor (LAM) during the third orbit of the satellite on May 22, at 3:58 am (IST) as a first step towards taking the satellite to its geostationary orbital home,” the statement added.
The GSAT-8 will improve direct to home TV broadcast services. Weighing about 3100 Kg at lift-off, GSAT-8 is configured to carry 24 high power transponders in Ku-band and a two-channel GPS Aided Geo Augmented Navigation (GAGAN) payload operating in L1 and L5 bands.
The 24 Ku band transponders will augment the capacity in the Insat system. The GAGAN payload provides the Satellite Based Augmentation System (SBAS), through which the accuracy of the positioning information obtained from the GPS Satellite is improved by a network of ground based receivers and made available to the users in the country through the geostationary satellites.
Prime Minister Manmohan Singh has applauded the efforts of the Department of Space for the successful launch of advanced communication satellite GSAT-8 for improving in an elliptical geo-synchronous transfer orbit early Saturday by the Ariane-VA-202 rocket.
Within minutes, the space agency’s master control facility (MCF) at Hassan, about 180 km from Bangalore, identified the presence of GSAT-8 in the geo-synchronous transfer orbit (GTO).
Responding to the news, the official Isro spokesperson claimed MCF will conduct a test to track the health parameters of the payloads by June 1 so that it will be accessed by DTH services from July 1
IandB ministry okay with 74% FDI ceiling for DTH, IPTV
New Delhi: The information and broadcasting ministry endorsed the recommendation by the Telecom Regulatory Authority of India (Trai) to enhance foreign direct investment (FDI) ceiling for direct to home TV, Internet protocol TV and teleport from 49% to 74%.
However, it rejected recommendation to reduce the FDI ceiling for local cable operators from 49% to 26%, arguing that the limit had been 49% since 1995. "The nature of control as per the provisions of the Company Law would also not undergo any change since the power to initiate a special resolution remains the same at 26% or at 49%. The ministry is of the view that not much purpose would be served by reducing the FDI limit and, therefore, 49% FDI may be retained for the LCOs," the ministry said in its draft note, which has now been sent back to Trai for consideration.
On the recommendations on FDI cap for uplinking of non-news and current affairs TV channels and downlinking of TV channels uplinked from abroad and in news channels and FM, radio, the I&B ministry agreed with views of Trai under those heads.
There is no restriction on foreign ownership of non-news and current affairs TV channels and downlinking TV channels uplinked from foreign countries. The Trai had favoured status-quo. There is a cap of 26% on FDI flow in news and current affairs TV channels and FM radio, and Trai wanted the limit to remain untouched.
The major change that could be in the offing is in the services offered by the various carriage services. While platforms such as HITS and mobile TV are allowed to invite FDI up to 74%, a parity is now being sought to be restored by allowing DTH , Teleport and IPTV operators also to attract the same level of foreign investment.
"The ministry may broadly agree with the recommendations that a limit of 74% for foreign investment for the broadcast carriage services such as DTH, IPTV, Mobile TV, HITS and Teleport may be set. This will bring uniformity in the FDI ceiling in carriage services. The rationale brought out by Trai for reaching the 74% limit is justified in view of the burgeoning growth of the sector, which requires huge investment and also in view of the convergences of technologies," the note said.
However, it rejected recommendation to reduce the FDI ceiling for local cable operators from 49% to 26%, arguing that the limit had been 49% since 1995. "The nature of control as per the provisions of the Company Law would also not undergo any change since the power to initiate a special resolution remains the same at 26% or at 49%. The ministry is of the view that not much purpose would be served by reducing the FDI limit and, therefore, 49% FDI may be retained for the LCOs," the ministry said in its draft note, which has now been sent back to Trai for consideration.
On the recommendations on FDI cap for uplinking of non-news and current affairs TV channels and downlinking of TV channels uplinked from abroad and in news channels and FM, radio, the I&B ministry agreed with views of Trai under those heads.
There is no restriction on foreign ownership of non-news and current affairs TV channels and downlinking TV channels uplinked from foreign countries. The Trai had favoured status-quo. There is a cap of 26% on FDI flow in news and current affairs TV channels and FM radio, and Trai wanted the limit to remain untouched.
The major change that could be in the offing is in the services offered by the various carriage services. While platforms such as HITS and mobile TV are allowed to invite FDI up to 74%, a parity is now being sought to be restored by allowing DTH , Teleport and IPTV operators also to attract the same level of foreign investment.
"The ministry may broadly agree with the recommendations that a limit of 74% for foreign investment for the broadcast carriage services such as DTH, IPTV, Mobile TV, HITS and Teleport may be set. This will bring uniformity in the FDI ceiling in carriage services. The rationale brought out by Trai for reaching the 74% limit is justified in view of the burgeoning growth of the sector, which requires huge investment and also in view of the convergences of technologies," the note said.
Rockwool sets up greenfield plant in Dahej
Mumbai/Ahmedabad: New unit to produce stone wool for insulation applications.
One of the largest producers of stone wool for insulation applications, Rockwool has set up a greenfield plant in Dahej, Gujarat. With an ability to save one billion tonnes of carbon dioxide (CO2) a year, the plant has a capacity to produce 30,000 tonnes per annum.
Talking about the new plant in Gujarat, Ian Russell, business unit director export and the UK, Rockwool Technical Insulation said, "Rockwool stone wool products reach all parts of the globe. Whilst Europe is still the strongest region in our operations, important sales and production activities in Asia – and especially in India - are growing significantly every year.
He added, “Moreover, this new plant opens opportunities for export to the Emirates and Saudi Arabia, which are also big markets for technical insulation."
Employing around 200 persons at full capacity, the new factory will produce a wide range of high quality stone wool insulation products for the insulation of industrial plants and buildings. Each of these products is developed for their specific application and offer exceptional/unrivalled thermal, fire protection, acoustic and sustainable performance.
"We see India as a high potential market, as industry is well aware of the need to lower both costs and environmental impact by saving energy and reducing CO2 emissions. This new plant will enable us to better serve our customers in the Indian Subcontinent. Through our Rockwool sales office in Mumbai, which we opened in 2010, we are now able to offer our customers efficient and cost-effective solutions for all their insulation needs," said Samson Suresh, General Manager - Sales, Rockwool.
Effective insulation in building and construction and in industry can save literally millions of tonnes of CO2, helping to protect the environment, whilst at the same time saving operators millions of rupees. Investing in insulation can be extremely profitable, with annual returns on investment reaching 100%.
Rockwool has installed insulation for technical installations around the world in one year that will save nearly 4,000 million tonnes of CO2 in its lifetime.
Part of the Rockwool Group, the Rockwool Technical Insulation (RTI) is a leading supplier of high quality stone wool products that provide solutions which insulate and protect technical installations in the process industry and marine and offshore.
One of the largest producers of stone wool for insulation applications, Rockwool has set up a greenfield plant in Dahej, Gujarat. With an ability to save one billion tonnes of carbon dioxide (CO2) a year, the plant has a capacity to produce 30,000 tonnes per annum.
Talking about the new plant in Gujarat, Ian Russell, business unit director export and the UK, Rockwool Technical Insulation said, "Rockwool stone wool products reach all parts of the globe. Whilst Europe is still the strongest region in our operations, important sales and production activities in Asia – and especially in India - are growing significantly every year.
He added, “Moreover, this new plant opens opportunities for export to the Emirates and Saudi Arabia, which are also big markets for technical insulation."
Employing around 200 persons at full capacity, the new factory will produce a wide range of high quality stone wool insulation products for the insulation of industrial plants and buildings. Each of these products is developed for their specific application and offer exceptional/unrivalled thermal, fire protection, acoustic and sustainable performance.
"We see India as a high potential market, as industry is well aware of the need to lower both costs and environmental impact by saving energy and reducing CO2 emissions. This new plant will enable us to better serve our customers in the Indian Subcontinent. Through our Rockwool sales office in Mumbai, which we opened in 2010, we are now able to offer our customers efficient and cost-effective solutions for all their insulation needs," said Samson Suresh, General Manager - Sales, Rockwool.
Effective insulation in building and construction and in industry can save literally millions of tonnes of CO2, helping to protect the environment, whilst at the same time saving operators millions of rupees. Investing in insulation can be extremely profitable, with annual returns on investment reaching 100%.
Rockwool has installed insulation for technical installations around the world in one year that will save nearly 4,000 million tonnes of CO2 in its lifetime.
Part of the Rockwool Group, the Rockwool Technical Insulation (RTI) is a leading supplier of high quality stone wool products that provide solutions which insulate and protect technical installations in the process industry and marine and offshore.
Alta-Xintong offers DC solar power for telecom towers
Chennai: Alta-Xintong Solar Tech Pvt Ltd, a joint venture between Bangalore-based Alta Energy Technologies Pvt Ltd and Chinese solar system solution provider XinTong, has launched DC solar power systems for power telecom towers in India. The company has tied up with an international financial institution to finance deployment of solar power systems.
The system would support the operators to run their new towers through solar power, reducing dependency on diesel powered systems which are currently under use, said E M Abdul Manaf, managing director, Alta Energy Technologies Pvt Ltd. The company is expecting to sell around 2,000 solar power systems by end of 2011, he added.
"We are in advanced stages of finalising 2,000 solar power systems for leading tower companies in India under the zero investment plan. We are in talks with major tower operators like Indus and GTL to provide the new system for their upcoming projects and shifting some of the existing towers from diesel system to solar system," he added.
Around 30,000 towers out of the total 300,000 telecom sites in the country are in off-grid rural locations, where it is run round the clock on diesel power. Besides, estimates are that around 36,000 sites are expected to come up in every year in India, with a market value of $ 2.16 billion.
The company has entered into tie-up with an international financial institution to provide an investment plan to the tower operators, zero investment plan. Under the plan, the financial institution would provide loan for investment, through which the tower operators could avail the system without making up-front investment.
Alta holds 65 per cent and XinTong holds 35 per cent of shares in the joint venture firm.
The system would support the operators to run their new towers through solar power, reducing dependency on diesel powered systems which are currently under use, said E M Abdul Manaf, managing director, Alta Energy Technologies Pvt Ltd. The company is expecting to sell around 2,000 solar power systems by end of 2011, he added.
"We are in advanced stages of finalising 2,000 solar power systems for leading tower companies in India under the zero investment plan. We are in talks with major tower operators like Indus and GTL to provide the new system for their upcoming projects and shifting some of the existing towers from diesel system to solar system," he added.
Around 30,000 towers out of the total 300,000 telecom sites in the country are in off-grid rural locations, where it is run round the clock on diesel power. Besides, estimates are that around 36,000 sites are expected to come up in every year in India, with a market value of $ 2.16 billion.
The company has entered into tie-up with an international financial institution to provide an investment plan to the tower operators, zero investment plan. Under the plan, the financial institution would provide loan for investment, through which the tower operators could avail the system without making up-front investment.
Alta holds 65 per cent and XinTong holds 35 per cent of shares in the joint venture firm.
IBM draws up 5-year India roadmap
Bangalore: Big Blue is turning 100 on June 16. As part of its centenary celebration, IBM in India has drawn up a five-year roadmap with a focus on emerging markets, business analytics, cloud computing and smarter planet.
IBM India managing director Shanker Annaswamy said the company services 700 large global clients from India. "The domestic market itself is very important for us. Telecom sector will be the main focus area for us, while banking, financial services, infrastructure, enterprise data warehousing and cloud computing will other spaces of importance for us in India."
In India, IBM is the largest IT services provider. Some 70% of its Indian revenues come from services and the rest from hardware. The company's BRIC region (Brazil, Russia, India and China) revenues grew by 19% during calendar 2010.
Annaswamy said, over its century of existence IBM has played a leading role in transforming business, science and society. Reinvesting modern corporation, pioneering the science of information and making the world work better will be the theme areas for IBM.
Since its reentry into India in 1992, IBM has been instrumental in enabling transformation across major industries including telecommunication, financial services, automotive, infrastructure, healthcare, government and education.
IBM will bring out a centennial book recording the history of the company and three journalists including Kevin Maney, Steve Hanm and Jeffrey M O'Brian are editing the book.
IBM India managing director Shanker Annaswamy said the company services 700 large global clients from India. "The domestic market itself is very important for us. Telecom sector will be the main focus area for us, while banking, financial services, infrastructure, enterprise data warehousing and cloud computing will other spaces of importance for us in India."
In India, IBM is the largest IT services provider. Some 70% of its Indian revenues come from services and the rest from hardware. The company's BRIC region (Brazil, Russia, India and China) revenues grew by 19% during calendar 2010.
Annaswamy said, over its century of existence IBM has played a leading role in transforming business, science and society. Reinvesting modern corporation, pioneering the science of information and making the world work better will be the theme areas for IBM.
Since its reentry into India in 1992, IBM has been instrumental in enabling transformation across major industries including telecommunication, financial services, automotive, infrastructure, healthcare, government and education.
IBM will bring out a centennial book recording the history of the company and three journalists including Kevin Maney, Steve Hanm and Jeffrey M O'Brian are editing the book.
Renault to up parts sourcing from India
Chennai: French carmaker Renault will source 80 million euros worth components this year from India to feed its overseas plants. The company sourced 35 million Euro worth parts last year.
Renault is gearing up for its re-entry after severing ties with Mahindra & Mahindra. The first car will be its sedan Fluence which will be assembled at the company's plant in Oragadam, Chennai. The plant is set up in alliance with Nissan with a capacity to produce 4 lakh cars a year.
"Increased sourcing of parts for our global operations demonstrates our determination to make India the hub for our activities in this region," Sudhir Rao, deputy managing director, Renault India, said. The company had announced plans to launch five cars over the next 18 months. "We will now launch five new models in the Indian market over the next 15 months instead of 18 months," Rao said. The company, he said, will have cars in every segment in 15 months.
Terming the Indian market as a challenge, Rao said Renault's success in India was crucial. "India entry is a litmus test for success. Only if we succeed here, some other markets will open up for Renault. It is a huge challenge," Rao said.
The company hopes to have 14 dealer outlets across 12 cities by June 2011 which will increase to 40 outlets by December. In the third phase the dealer footprint will increase to 100 outlets.
Component sourcing by Renault's alliance partner Nissan from India for its worldwide operations is also gaining momentum. The company had envisaged $10 million worth components to be sourced from Indian vendors for its plants Thailand, China, Japan and the UK. "For the last year we sourced components worth $40 million. For the current fiscal (ending March 2012), we will source $100 million worth parts," Kiminobu Tokuyama, MD of Nissan India, said.
Renault is gearing up for its re-entry after severing ties with Mahindra & Mahindra. The first car will be its sedan Fluence which will be assembled at the company's plant in Oragadam, Chennai. The plant is set up in alliance with Nissan with a capacity to produce 4 lakh cars a year.
"Increased sourcing of parts for our global operations demonstrates our determination to make India the hub for our activities in this region," Sudhir Rao, deputy managing director, Renault India, said. The company had announced plans to launch five cars over the next 18 months. "We will now launch five new models in the Indian market over the next 15 months instead of 18 months," Rao said. The company, he said, will have cars in every segment in 15 months.
Terming the Indian market as a challenge, Rao said Renault's success in India was crucial. "India entry is a litmus test for success. Only if we succeed here, some other markets will open up for Renault. It is a huge challenge," Rao said.
The company hopes to have 14 dealer outlets across 12 cities by June 2011 which will increase to 40 outlets by December. In the third phase the dealer footprint will increase to 100 outlets.
Component sourcing by Renault's alliance partner Nissan from India for its worldwide operations is also gaining momentum. The company had envisaged $10 million worth components to be sourced from Indian vendors for its plants Thailand, China, Japan and the UK. "For the last year we sourced components worth $40 million. For the current fiscal (ending March 2012), we will source $100 million worth parts," Kiminobu Tokuyama, MD of Nissan India, said.
iGate completes Patni acquisition
Reconstitutes Patni board; retains 4 senior executives in the executive council; iGate Patni to be the new brand identity.
Marking the biggest acquisition of the India information technology (IT) industry, Nasdaq-listed iGate on Thfursday announced the completion of Patni Computer Systems’ acquisition and revamping of the top leadership. The combined entity will be known as iGate Patni.
While Phaneesh Murthy, the iGate CEO, has been made the MD and CEO of the combined entity, he will work with an eight-member executive council. This has equal representation from the old Patni team and iGate. With this, iGate’s total holding in Patni hit 82.5 per cent.
At the board level, Narendra Patni, the founder and chairman of Patni, made way for Jai Pathak. The board will also have Shashank Singh, co-head of Apax India, and Göran Lindahl, member of the iGate board, as the new directors with existing members Vimal Bhandari and Arun Duggal continuing as independent directors.
Former CEO of Patni, Jeya Kumar, has stepped down to pave way for Murthy who will take over the position with immediate effect.
The new management of iGate said both companies will continue as listed entities in their respective exchanges while the market-facing activity will be done by a single brand to be known as iGate Patni. Murthy said he was not in favour of a family name as part of the company name, but for the time being Patni will be part of the brand as it will act as a bridge between clients.
The four members of the old iGate team, who have been retained are Sunil Chitale, Satish Joshi, Derek Kemp and Vijay Khare. iGate senior executives who are part of the new executive council of the merged entity are Sujit Sircar, Sean Narayanan, David Kruzner and Robert Massie.
Murthy said the company brought down the leadership team of the merged entity from 22 to nine people to make it more focused. “The departure of some senior executives of Patni is largely motivated by us. They have been well compensated as per their contractual obligation with the earlier Patni management. We are known as one of the best employers and always value our people. So, the retrenchment will remain confined to the senior management level,” he said.
The combined entity will now have 26,000 employees with a client base of 360. The merged entity will have a two $100 million (annual revenue generating) clients and two $50 million clients other than 36 clients who fetch a revenue of $5 million per annum.
With this, the top five clients will contribute 38 per cent of the total turnover while the top 10 customers will account for 49 per cent. “We believe there is a number of cross-selling opportunities across the 360 clients of iGate and Patni, and will focus on improving service levels depending upon our engagement with existing clients. The initial feedback of the customers is very encouraging. In the next two to three years, our goal is to become the leader by capability in two verticals (banking and financial services and insurance) and a significant player in at least three to four other verticals,” said Murthy.
In the long run, the new management favours a primary US listing but for that it will have to buy out the minority shareholders.
iGate entered into an agreement to acquire majority stake in Patni in January. The transaction marks the completion with the buyout of the principal stakeholders, Narendra Patni, Ashok Patni, Gajendra Patni and General Atlantic, and the 20 per cent mandatory tender offer to the public shareholder. On April 27, iGate concluded the open offer which was fully subscribed, giving iGate a majority stake in Patni Computer Systems of about 83 per cent.
Marking the biggest acquisition of the India information technology (IT) industry, Nasdaq-listed iGate on Thfursday announced the completion of Patni Computer Systems’ acquisition and revamping of the top leadership. The combined entity will be known as iGate Patni.
While Phaneesh Murthy, the iGate CEO, has been made the MD and CEO of the combined entity, he will work with an eight-member executive council. This has equal representation from the old Patni team and iGate. With this, iGate’s total holding in Patni hit 82.5 per cent.
At the board level, Narendra Patni, the founder and chairman of Patni, made way for Jai Pathak. The board will also have Shashank Singh, co-head of Apax India, and Göran Lindahl, member of the iGate board, as the new directors with existing members Vimal Bhandari and Arun Duggal continuing as independent directors.
Former CEO of Patni, Jeya Kumar, has stepped down to pave way for Murthy who will take over the position with immediate effect.
The new management of iGate said both companies will continue as listed entities in their respective exchanges while the market-facing activity will be done by a single brand to be known as iGate Patni. Murthy said he was not in favour of a family name as part of the company name, but for the time being Patni will be part of the brand as it will act as a bridge between clients.
The four members of the old iGate team, who have been retained are Sunil Chitale, Satish Joshi, Derek Kemp and Vijay Khare. iGate senior executives who are part of the new executive council of the merged entity are Sujit Sircar, Sean Narayanan, David Kruzner and Robert Massie.
Murthy said the company brought down the leadership team of the merged entity from 22 to nine people to make it more focused. “The departure of some senior executives of Patni is largely motivated by us. They have been well compensated as per their contractual obligation with the earlier Patni management. We are known as one of the best employers and always value our people. So, the retrenchment will remain confined to the senior management level,” he said.
The combined entity will now have 26,000 employees with a client base of 360. The merged entity will have a two $100 million (annual revenue generating) clients and two $50 million clients other than 36 clients who fetch a revenue of $5 million per annum.
With this, the top five clients will contribute 38 per cent of the total turnover while the top 10 customers will account for 49 per cent. “We believe there is a number of cross-selling opportunities across the 360 clients of iGate and Patni, and will focus on improving service levels depending upon our engagement with existing clients. The initial feedback of the customers is very encouraging. In the next two to three years, our goal is to become the leader by capability in two verticals (banking and financial services and insurance) and a significant player in at least three to four other verticals,” said Murthy.
In the long run, the new management favours a primary US listing but for that it will have to buy out the minority shareholders.
iGate entered into an agreement to acquire majority stake in Patni in January. The transaction marks the completion with the buyout of the principal stakeholders, Narendra Patni, Ashok Patni, Gajendra Patni and General Atlantic, and the 20 per cent mandatory tender offer to the public shareholder. On April 27, iGate concluded the open offer which was fully subscribed, giving iGate a majority stake in Patni Computer Systems of about 83 per cent.
Wipro buys 80% stake in Brazilian cylinder maker
Bengalore: Wipro Limited has signed a definite agreement to acquire an 80 per cent stake in Brazilian hydraulic cylinder manufacturer RKM Equipamentos Hidráulicos for an undisclosed amount.
According to the agreement, Wipro will acquire the remaining stake over the next three years. RKM would be a part of Wipro’s infrastructure engineering division.
The Bangalore-headquartered company said the acquisition was expected to be completed during this quarter, subject to customary regulatory approvals.
RKM, one of the top four manufacturers of hydraulic cylinders in Brazil, has one plant near Sao Paulo, the capital of Brazil.
The company, which counts global automobile companies and equipment manufacturers like Volvo, AGCO Corporation and CNH Global among its clients, employs 200 people.
Apart from giving a manufacturing base, the acquisition will also mark the entry of Wipro’s infrastructure engineering division into the Brazilian market.
“Brazil is an extremely attractive market for us which is seeing huge investments in infrastructure space, driven by a high-growth economy. The acquisition will provide us an ideal platform to expand our offerings in the Brazilian market and the rest of the Latin America,” said Pratik Kumar, president, Wipro Infrastructure Engineering.
Wipro Infrastructure Engineering, which accounts for less than four per cent of the company’s overall revenues, has three manufacturing facilities in Europe and four in Sweden. It has three manufacturing plants in India and one each in Finland and China. The China plant is expected to be operational this month.
It is a Tier-1 supplier to global original equipment manufacturers of construction and earth moving machinery, material handling equipment, forestry equipment, heavy and medium commercial vehicles.
According to the agreement, Wipro will acquire the remaining stake over the next three years. RKM would be a part of Wipro’s infrastructure engineering division.
The Bangalore-headquartered company said the acquisition was expected to be completed during this quarter, subject to customary regulatory approvals.
RKM, one of the top four manufacturers of hydraulic cylinders in Brazil, has one plant near Sao Paulo, the capital of Brazil.
The company, which counts global automobile companies and equipment manufacturers like Volvo, AGCO Corporation and CNH Global among its clients, employs 200 people.
Apart from giving a manufacturing base, the acquisition will also mark the entry of Wipro’s infrastructure engineering division into the Brazilian market.
“Brazil is an extremely attractive market for us which is seeing huge investments in infrastructure space, driven by a high-growth economy. The acquisition will provide us an ideal platform to expand our offerings in the Brazilian market and the rest of the Latin America,” said Pratik Kumar, president, Wipro Infrastructure Engineering.
Wipro Infrastructure Engineering, which accounts for less than four per cent of the company’s overall revenues, has three manufacturing facilities in Europe and four in Sweden. It has three manufacturing plants in India and one each in Finland and China. The China plant is expected to be operational this month.
It is a Tier-1 supplier to global original equipment manufacturers of construction and earth moving machinery, material handling equipment, forestry equipment, heavy and medium commercial vehicles.
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