Vodafone pays $1.9 billion for buying Essar stake in JV

NEW DELHI: UK-based Vodafone today paid USD 1.9 billion to Essar as first tranche for buying 22 per cent stake, held by offshore entities belonging to Ruias in their telecom joint venture Vodafone-Essar.

The 22.03 per cent stake, held in the JV by offshore entities of the Ruias-led Essar, is valued at USD 3.8 billion.

"We have made the first tranche of payment to Essar," a Vodafone spokesperson said.

Of Essar's 33 per cent stake in the JV, 22.03 per cent is owned by the company's overseas entities, while the remaining 10.97 per cent is held by the group's Indian firms and is valued at USD 1.2 billion.

According to sources, Vodafone has now paid USD 1.9 billion to Essar and the remaining USD 1.9 billion would be paid in November.

To sell the remaining 10.97 per cent in the telecom joint venture, Essar has approached the Reserve Bank of India (RBI) for approval.

When contacted, Essar spokesperson declined to comment.

Sony announces launch of world's biggest singing show in India

MUMBAI: Sony Entertainment Television today unveiled 'X Factor India' the Indian version of the No.1 singing show globally X Factor.

A worldwide phenomenon, THE X FACTOR is a competition series developed by Simon Cowell that gives viewers the opportunity to help choose the next musical megastar.

THE X FACTOR is a runaway hit in 24 countries with over 500 million viewers, the Big Daddy of all singing shows in size and scale.

The show will showcase Xtraordinary talent from across the length and breadth of the country like never seen before.

The X Factor India , a show, lavishly mounted in exotic locales and spectacular sets raises the bar and takes the initial auditions to an exciting and explosive new level as the hopefuls will audition not only for the judges, but also in front of a live audience of thousands in venues across the country.

The concert-like atmosphere will bring a new dimension to the performances, giving the contestants an opportunity to prove they have the whole package - vocal ability, charisma and stage presence - from the moment they step on stage.

Those contestants who survive the first auditions graduate to "boot camp" and will then be divided into three categories: 16 - 25 years, individuals over 25 years and groups.

Produced by Freemantle India, THE X FACTOR proven ratings success story, across the globe with the recent U.K. finale capturing a phenomenal 20 million viewers.

Taj enters into management contract with Morocco's JK Hotels

MUMBAI: Taj Hotels Resorts and Palaces today said it has entered into a management contract with Morocco's JK Hotels to manage 'Taj Palace Marrakech', which will increase the company's global portfolio to 17 hotels.

With this, the Taj Group has now established its presence in North Africa and will now manage Taj Palace Marrakech , which is set to launch in autumn 2011, the company said in a statement here.

"Taj Palace Marrakech, is our latest venture into the African continent and is in sync with our strategy to continue our vision of growth in key international destinations," Indian Hotels Managing Director and Chief Executive Officer Raymond N Bickson , said.

This hotel will fit perfectly into the company portfolio with its meticulously crafted and vivid blend of Moroccan, Indian and Asian themes, he said.

"Taj Hotels' is a legendary chain and we are delighted with this association. Under the Taj management, our guests will experience the most exacting standards of world class hospitality. We look forward to a mutually rewarding relationship," owner of JK Hotels Jaouad Kadiri said.

ISS India plans to double its revenue to Rs 850 cr in CY 11

MUMBAI: Leading global facility service company ISS is eyeing to double its revenue to about Rs 850 crore this calender year (CY) in India in line with its growing operations in the country.

"Looking at the growth in demand for world-class service, we are expecting to double our revenue to Rs 800-850 crore in CY 11 in India. We are also targeting an organic growth of 20-25 per cent in CY 12," the Denmark-based company's Country Head, Jolly Kochery , told PTI here.

ISS Group recorded a total revenue of USD 14.1 billion in 2010, up 7.3 per cent over the last year, while operating profit increased 27 per cent to USD 800 million.

The company has operations in 53 countries in Europe, Asia, North America, South America and Australia and provides local and global standard for cleaning, catering, property services, office support and security services.

ISS Facility Services India began operations in 2005 with an investment of Rs 350 crore, and India has become the biggest growth driver for the firm in Asia Pacific as well as global level with increasing demand for world-class outsourcing services, Kochery said.

"We are competing with the unorganised sector and we expect 2012 will be as positive as 2011."

The company, which currently enjoys 1.5 per cent market share of the total organised Rs 700-billion segment, is planning to raise it to 3.5 per cent by 2014, he said.

The total employee strength of ISS India is 47,000 and the company is planning to add another 8,000-10,000 to its rolls in CY 11 in line with its expansion.

Anil Ambani group's Reliance Capital to hire 3,500 managers, 50,000 insurance agents

NEW DELHI: Having witnessed a dip of over 4,500 staff from its headcount in last fiscal, Anil Ambani group's financial services arm Reliance Capital will hire over 3,500 managers for its various businesses this year.

Besides, the company also plans to hire 50,000 insurance agents in the current financial year ending March 2012, Reliance Capital CEO Sam Ghosh told media.

The large-scale hiring plans comes on the back of the company witnessing a decline of 4,550 people from its headcount in its insurance, mutual fund and other businesses during the fiscal ended March 31, 2011.

The company's total headcount stood at 18,069 as on March 31, 2011, down from 22,619 employees a year ago on March 31, 2010, as per its financial presentations for the two fiscals. Reliance Capital now plans to increase its headcount to near 21,000 people in the current fiscal, Ghosh said.

Reliance Capital is the financial services arm of the Anil Ambani group, which also has presence in businesses like telecom, power, infrastructure, media and entertainment.

The group employee strength also dipped by around 10,000 employees between May, 2010 and March, 2011, but latest figures are not available for across-the-group headcount.

As per a Reliance Capital investor presentation in March 2011, ADAG had "120,000 young, trained and motivated people" across its various group companies, as against a figure of "130,000 young, trained and motivated people" mentioned in a previous presentation dated May, 2010.

The sharp decline in Reliance Capital's headcount during 2010-11 was mainly due to life insurance business, while asset management, broking and destribution and general insurance segments also saw their staff strength declining in the year.

Asked about the decline in staff strength, Ghosh said it was largely because of a cyclical movement of people in life insurance business and the company has already started a major hiring drive.

"The fluctuation in headcount last year was predominately on account of cyclical movement of sales managers seen in life insurance business. We have already started hiring sales managers for our life insurance business and will be crossing the 12,000 headcount mark by July," Ghosh said.

"In addition, we also plan to add 50,000 agents in our insurance business during this fiscal," he added. The insurance agents are not included in the company's headcount.

Across the various businesses, Reliance Capital will hire more than 3,500 managers and take the total headcount to near 21,000 people, Ghosh said.

"Reliance Capital plans to hire over 3500 managers and ramp up its head count to around 21,000, across businesses, in this fiscal," he noted.

Lupin signs licensing deal with Sydney company

MUMBAI: Drugmaker Lupin Ltd said on Wednesday it signed a licensing agreement with Sydney-based private speciality lifescience company NeuClone Pty Ltd for cell line technology .

"This agreement and such similar agreements, coupled with our own pipeline will go a long way in helping us address the impending opportunity and develop a substantial differentiated biological pipeline," President Cyrus Karkaria, said in the statement

Lincoln sales rise 49% for the financial year 2010-11

AHMEDABAD: Ahmedabad-based pharma company , Lincoln Pharmaceuticals Limited (LPL), registered sales growth of 49.72% for the financial year 2010-11. For the next financial year 2011-12, the company plans to pump Rs 5 crore for its inhouse research and development (R&D) on its new drug pipeline.

On Wednesday, the company informed the exchange that it maintained its growth momentum. Its consolidated revenue rose to Rs 189.73 crore as against Rs 126.72 in the previous years. Net profit registered minimal growth as it stood at Rs 6.22 crore compared to Rs 6.04 crore in previous year.

Talking to ET, Rajani G Patel, joint managing director of Lincoln said : "The company would spend Rs 5 crore for the FY 2011-12 for carrying out clinical and bioequivalence test on new products". The company already has an R&D unit in Ahmedabad , and would spend the fund on developing five to six new drugs. The products are for orthopedic, gynecology and paediatric segment.

The fund would be raised from internal accruals. On Wednesday, Lincoln's stock price rose by 0.59%, closing at Rs 34.The company also recommended dividend of 6% per equity share, subject to shareholders approval at the AGM.

Torrent Power Ltd to enter renewable energy sector

AHMEDABAD: Country's largest electricity distributor Torrent Power Limited is entering the renewable energy sector with wind and solar projects of 50 MW each which would be operational by December, a company source said. The company has already tied up with Enercon for setting up 50 MW wind power project and signed a power purchase agreement with a solar power firm for 50 MW early this year. Torrent Power's tie-ups are expected to attract investments to the tune of Rs 1,000 crore for wind and solar power projects in Gujarat.

Meanwhile, KfW Bank of Germany paid Rs 100 crore to Torrent Power for Certified Emission Reduction that it has been generating since its 1,147 MW gas based SUGEN plant became operational in 2009 in South Gujarat. KfW has issued close to two million CERs to SUGEN project and the cumulative carbon emission reductions between 2009 and 2019 is estimated at 31.89 million tonnes. According sources close to the development, Rs 6,834 crore Torrent Power will garner close to Rs 400 crore a year from CERs. Torrent Power spokesperson did not respond the emailed questionnaire.

Torrent Power caters to over 3 million customers annually in Ahmedabad, Gandhinagar, Surat, Bhiwandi and Agra in three states. Soon it will take over distribution assets in Kanpur city of Uttar Pradesh. According to the market sources, Torrent Power has gas and coal based generation facilities and it has not been able to purchase electricity from renewable resources to meet its obligation, as mandated by the regulator.

"Recently, Torrent Power requested the Gujarat Electricity Regulatory Commission (GERC) to reduce the minimum percentage of renewable purchase obligation target. Torrent Power attempted to invite bids to procure electricity from renewable power developers but it could not attract desirable quantum. As a result, the company has decided to venture into renewable energy arena on its own," said a source familiar with the developments.

According to GERC mandate, the distribution licensee has to purchase electricity to the extent of 5% of the total consumption of its consumers including T&D loss in a year. Torrent Power is projecting to cater 9,805 million units of electricity in its license areas of Ahmedabad-Gandhinagar and Surat.

Torrent Power is expanding its SUGEN power plant as peak demands in Ahmedabad-Gandhinagar and Surat is estimated at 1,650 MW, which is its total generation capacity today. Torrent Power is also commissioning 1,600 MW gas based generation unit at Dahej in South Gujarat. The company is expected to generate significant CERs at its proposed Dahej unit too.

JSW Energy scraps deal with CIC Energy

NEW DELHI: JSW Energy today scrapped a deal for acquiring Canada's CIC Energy, saying the Toronto Stock Exchange-listed firm did not fulfil the buy-out conditions within the stipulated time frame.

" CIC Energy has not fulfilled all the conditions for the acquisition. They have not asked for any extension as well. Hence, the deal stands cancelled," JSW Energy Chief Executive Officer L K Gupta told media.

JSW Energy had announced last November that it has entered into an agreement with CIC Energy Corp, a company incorporated in the British Virgin Islands and listed on the Toronto and Botswana stock exchanges, to acquire all of its shares for a a total consideration of around USD 439 million.

JSW Eenergy had earlier exuded confidence that the deal would be completed by the final quarter of the last fiscal. However, after several extensions, the last agreed date, by both the parties, for the merger was on May 31, 2011.

CIC, which is developing Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, has an exportable surplus of up to 20 million tonnes per annum over the next 40 years.

JSW Energy has 1,430 MW power generation capacity and an additional 1,710 MW capacity is in advanced stages of completion. The company is targeting an aggregate generation capacity of 12,070 MW by 2015-16.

Meanwhile, Gupta said JSW Energy continues to look for suitable coal assets acquisitions across the globe, but did not divulge any further.

Godrej Appliances on product launch spree, to introduce TV sets

LUCKNOW: Godrej Appliances is on an aggressive launch drive and plans to introduce atleast one new product or model every four months.

With a number companies entering into the home appliances segment, Godrej has taken course to launching newer models and innovative products in the home appliances segment to beat the clutter and grow its market share.

Assistant Vice President, Godrej Appliances, Rajeev Dube said that they are present in all kinds of home appliances and are also testing the market for colour televisions, which was one gap in their portfolio.

"We have soft launched TV sets in Tamil Nadu, West Bengal, Kerala, Andhra Pradesh and parts of Maharashtra. We are testing the market response and have got encouraging response" said Mr Dube.

The company plans to launch either a new product or a technologically superior and innovative model of existing products very four months, he said.

The latest offering by the company has been the music-enabled refrigerators. The Edge SX Muziplay refrigerators besides working as a fridge would bring FM, MP3 music to kitchens and one can also recharge mobile sets through gadgets provided in the refrigerator.

Also Godrej plans to have its own exclusive showrooms across India and plans are underway to open them in the next couple of months.

With large number of consumer products the group would be opening showrooms, which would market all kinds of home appliances, decor, furniture under the Godrej brand name, said Mr Dube.