NEW DELHI: The union cabinet on Tuesday approved a plan to sell 5 per cent of the government's stake in power gear maker Bharat Heavy Electricals (BHEL), the government said in a statement.
The government will sell 5 per cent of its 67.7 per cent holding in BHEL through a follow-on public share offering. At current prices, the stake is valued at about $940 million.
The stake sale is part of the government's plan to raise 400 billion rupees ($8.7 billion) through stake sales in state-run firms in the current fiscal year to March 2012.
BHEL has shortlisted Bank of America Merrill Lynch, Morgan Stanley and two Indian banks to manage the share sale, sources with knowledge of the situation told Reuters last month.
Success in my Habit
Thursday, September 1, 2011
ONGC Videsh Ltd (OVL) to invest $ 1.5 bn in an Iraq oil block
NEW DELHI: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), may invest over $ 1.5 billion in exploring for oil in a block that was awarded to it by the erstwhile Saddam Hussein regime.
"We are nearing finality on the contract for Block-8. It is likely to be signed in next six months," an official said.
Block-8, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, was awarded to OVL in November 2000 by the then Saddam Hussein government. However, the government formed after the US invasion of the oil-rich country, sought re-negotiation of the contract which has now been concluded.
The post-Saddam Hussain regime had initially agreed to signing of a Production Sharing Contract (PSC), where OVL would have got ownership of the oil it produced from Block-8. But the success of post-war licensing rounds, where global majors committed to develop oilfields for a small fee, has seen Baghdad change track and offer a service contract to OVL.
The block already has a discovery and is estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable, he said, adding OVL has committed investing $ 86 million in two phases of exploration and $ 1.45 billion in development of the reserves thereafter.
The contract would be a service contract wherein OVL will be paid about 18 per cent rate of return on its investment. The company holds 100 per cent interest in the block.
"We are currently agreeing on finer details of the contract," he said.
Exploration and development contract for Block-8, Western Desert, was signed by OVL with the Oil Exploration Company of Iraq, on November 28, 2000, at New Delhi.
As per the 2000 contract, OVL was to reprocess and interpret existing 2-D seismic data. It was also to acquire, process and interpret 1,000 km of 2D and carry out 300 sq km of 3D seismic survey besides drilling two wells.
The service contract now being drawn would be similar to the one China National Petroleum Corp (CNPC) had signed recently for developing Al-Ahdad oilfield in central Iraq. "It will be a service contract wherein OVL will be paid about 18 per cent rate of return on the investment it makes in finding and producing oil from Block 8," the official said.
It would act as the operator of the field until it recoups all its costs and set up a joint operating company with the local operator to take over once development costs have been repaid.
Baghdad has, however, refused the Tuba oilfield, for which OVL, in consortia with Reliance Industries and Algeria's Sonatrach, were in negotiations before the US attack on Iraq.
Suzlon Energy planning $1.3 bn wind project to power Australian homes
MELBOURNE: Wind power company Suzlon Energy is planning a $ 1.3 billion project in regional South Australia to power 225,000 homes a year.
According to an ABC report today, Suzlon Energy Australia said the $ 1.3 billion wind farm will be built 20 kilometres South-West of Ardrossan, a small town on the East Coast of the Yorke Peninsula.
It said up to 180 turbines will generate 600 megawatts of energy and deliver power to 225,000 homes in Adelaide via an undersea cable.
The project is expected to create 500 construction jobs and 50 ongoing jobs will be completed by the end of 2015, it said.
Suzlon Energy Australia Commercial Director Chris Judd said the company was approached by local landowners last year to develop the project.
"It's basically been a landowner-developed project and this has been a dream of theirs for over seven years now, so the beauty of this project is that it does come with some seven years of homework and data, etc, behind it to help justify its economics," he said.
Suzlon is also involved with wind farm projects at Hallett, North of Adelaide.
Premier Mike Rann said the Yorke Peninsula proposal will add to South Australia's green credentials.
It was reported that Rann met with the company, the biggest wind turbine supplier in India and the world's fifth-largest, during a trade trip to the South Asian nation earlier this month, where he stated that Suzlon had "really been helping us in generating wind power".
Chief Ministers of 11 states to support an anti-tobacco campaign
PANAJI: Chief Ministers of 11 states in India have pledged their support to Voice of Tobacco Victims (VOTV), a national campaign against chewing tobacco in their states to root out the social evil, a national NGO said today.
General Secretary of National Organisation for Tobacco Eradication (NOTE), Shekhar Salkar stated that chief ministers of Assam, Goa, Punjab, Kerala, Karnataka, Maharashtra, Arunachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Gujarat have pledged to do their best for oral cancer victims, doctors and tobacco control advocates of their states.
"The victims, along with oncologists met their respective chief ministers and urged them to protect the people of their states from the harmful effects of tobacco products by banning gutka, implementing stringent pictorial warnings on chewing tobacco products, putting an end to indirect advertising of chewing tobacco product, stopping sale of chewing tobacco products near educational institutions, increasing taxation on all tobacco products," Salkar stated.
"All the chief ministers assured the victims of their commitment by signing a pledge calling for a ban on gutka and khaini products," Salkar said.
"I will raise my voice against this issue and support all initiatives to rid India of this menace of gutka and khaini and help save millions of Indian lives," reads the pledge.
It is heartening that custodians of health of the state have pledged their support for tobacco control, said Dr Pankaj Chaturvedi, Associate Professor, Head and Neck Department Tata Memorial Hospital, Mumbai.
"We salute all those CMs who have openly supported and urge those, whom we could not reach and those, who are still to decide about their stand on this issue, to support this initiative to get rid of this menace from India," he added.
VOTV is a national campaign to advocate against the chewing tobacco and other smokeless forms of tobacco. It has been conceptualised and initiated by the victims of oral cancer, who have come together to promote greater awareness about the harmful effects of tobacco use.
Numerous doctors and directors of regional cancer centres from across the country are supporting VOTV for the cause.
In March, directors of 17 regional cancer centres in India, including the Tata Memorial Centre (TMC), had written letters to the Prime Minister Manmohan Singh to ban gutka and other chewing tobacco products in India.
A recent report by experts of National Institute of Health and Family Welfare (NIHFW) on the harmful effects of gutka informs that the number of oral cancer cases in India alone stands at 86 per cent of the oral cancer figures across the world.
India has the highest number of oral cancer patients in the world with 75, 000 to 80, 000 new cases of oral cancers a year. Shockingly, chewing tobacco and gutka contribute to 90 per cent of oral cancer cases in the country.
According to last year's Global Adult Tobacco Survey (GATS 2010), nearly 1/3 of Indian population is addicted to smokeless tobacco, including a large section of children and youth in India.
Depending upon the geographical areas, different names with different combinations of smokeless tobacco are marketed, such as mawa, khaini, gudakhu, panni etc. All these items essentially have tobacco.
"Despite the Supreme Court order banning gutka in plastic pouches, gutka, pan masala and other smokeless tobacco products are still widely sold in plastic pouches. The enforcement agencies need to take actions against the errants," Salkar said.
General Secretary of National Organisation for Tobacco Eradication (NOTE), Shekhar Salkar stated that chief ministers of Assam, Goa, Punjab, Kerala, Karnataka, Maharashtra, Arunachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Gujarat have pledged to do their best for oral cancer victims, doctors and tobacco control advocates of their states.
"The victims, along with oncologists met their respective chief ministers and urged them to protect the people of their states from the harmful effects of tobacco products by banning gutka, implementing stringent pictorial warnings on chewing tobacco products, putting an end to indirect advertising of chewing tobacco product, stopping sale of chewing tobacco products near educational institutions, increasing taxation on all tobacco products," Salkar stated.
"All the chief ministers assured the victims of their commitment by signing a pledge calling for a ban on gutka and khaini products," Salkar said.
"I will raise my voice against this issue and support all initiatives to rid India of this menace of gutka and khaini and help save millions of Indian lives," reads the pledge.
It is heartening that custodians of health of the state have pledged their support for tobacco control, said Dr Pankaj Chaturvedi, Associate Professor, Head and Neck Department Tata Memorial Hospital, Mumbai.
"We salute all those CMs who have openly supported and urge those, whom we could not reach and those, who are still to decide about their stand on this issue, to support this initiative to get rid of this menace from India," he added.
VOTV is a national campaign to advocate against the chewing tobacco and other smokeless forms of tobacco. It has been conceptualised and initiated by the victims of oral cancer, who have come together to promote greater awareness about the harmful effects of tobacco use.
Numerous doctors and directors of regional cancer centres from across the country are supporting VOTV for the cause.
In March, directors of 17 regional cancer centres in India, including the Tata Memorial Centre (TMC), had written letters to the Prime Minister Manmohan Singh to ban gutka and other chewing tobacco products in India.
A recent report by experts of National Institute of Health and Family Welfare (NIHFW) on the harmful effects of gutka informs that the number of oral cancer cases in India alone stands at 86 per cent of the oral cancer figures across the world.
India has the highest number of oral cancer patients in the world with 75, 000 to 80, 000 new cases of oral cancers a year. Shockingly, chewing tobacco and gutka contribute to 90 per cent of oral cancer cases in the country.
According to last year's Global Adult Tobacco Survey (GATS 2010), nearly 1/3 of Indian population is addicted to smokeless tobacco, including a large section of children and youth in India.
Depending upon the geographical areas, different names with different combinations of smokeless tobacco are marketed, such as mawa, khaini, gudakhu, panni etc. All these items essentially have tobacco.
"Despite the Supreme Court order banning gutka in plastic pouches, gutka, pan masala and other smokeless tobacco products are still widely sold in plastic pouches. The enforcement agencies need to take actions against the errants," Salkar said.
KK Modi eyes 51% in Godfrey Phillips
NEW DELHI: The KK Modi group is set to wrest majority control in cigarette maker Godfrey Phillips India (GPI) from American tobacco major Philip Morris as the Indian business house leads the company's charge into noncigarette segments such as beedi and chewing pan masala , potentially to the discomfort of the foreign partner.
GPI, a Rs 3,000-crore publicly-listed company, is a joint venture between the Modis and Philip Morris who each held 36% stake originally. However, changing equations , and the new diversification plans-led by the Indian promoter-saw the Modis pick up an additional 11% stake from the foreign partner last year, taking up their holding to 47%.
Modi, chairman of Modi group, told TOI that as per an agreement between the partners, he has the "right" to take up his holding to 51% by buying further into Philip Morris' holding to get a majority control of the company, India's second-biggest cigarette maker that sells the "Four Square" brand and also distributes the iconic Marlboro brand (from Philip Morris stable).
This would bring down the stake of Philip Morris to 21%. Modi said the market was currently "too hot" for buying the additional stake from Philip Morris. "Whenever the market will come down, we will buy. We have the freedom and the agreement to go to 51% and they have agreed." The scrip of GPI closed at Rs 2,370 on the Bombay Stock Exchange , down 1.3%. Modi said the idea is to give one promoter management control to freely manage operations. "There was a great (deal of) uncertainty, even though by agreement we had the management control. But by shareholding , we were sharing the management control with Philip Morris. So, Philip Morris agreed that it is better for one person to control, because now we are diversifying into many areas like beedis and chewing tobacco... which are not their forte."
Sources, however, said the American tobacco major was not very comfortable with Modi's plans to diversify in noncigarette businesses. However , it had to give in considering the strength and experience of the Indian partner and its reach in the market. Philip Morris officials did not comment on the story despite several attempts.
Modi said his group will invest over Rs 2,000 crore in the coming years for expansion, and a majority of this will be pumped into GPI to fund its diversification plans as well as for a new factory in Mumbai. The cigarette business was not enough to sustain his group's vision of achieving a 30% growth in revenues and margins every year, he said. "The cigarette business is not growing at that rate. To achieve 30% growth, we cannot go with cigarette alone." While Modi's sons Lalit (the former IPL commissioner ) and Samir are on the company's board, his granddaughter Priyal (his daugther Charu's daughter) is helping him with the beedi business.
The company's beedi business is under the brand "Sona" while in chewing pan masala , it has the brand "Pan Vilas" which was launched early last year in some markets of the country. Modi said the agreement with Philip Morris also stipulates that if and when he decides to sell his holding, the American company will have the first right to buy it. "Only if they cannot buy will we have the right to sell it to someone else."
GPI, a Rs 3,000-crore publicly-listed company, is a joint venture between the Modis and Philip Morris who each held 36% stake originally. However, changing equations , and the new diversification plans-led by the Indian promoter-saw the Modis pick up an additional 11% stake from the foreign partner last year, taking up their holding to 47%.
Modi, chairman of Modi group, told TOI that as per an agreement between the partners, he has the "right" to take up his holding to 51% by buying further into Philip Morris' holding to get a majority control of the company, India's second-biggest cigarette maker that sells the "Four Square" brand and also distributes the iconic Marlboro brand (from Philip Morris stable).
This would bring down the stake of Philip Morris to 21%. Modi said the market was currently "too hot" for buying the additional stake from Philip Morris. "Whenever the market will come down, we will buy. We have the freedom and the agreement to go to 51% and they have agreed." The scrip of GPI closed at Rs 2,370 on the Bombay Stock Exchange , down 1.3%. Modi said the idea is to give one promoter management control to freely manage operations. "There was a great (deal of) uncertainty, even though by agreement we had the management control. But by shareholding , we were sharing the management control with Philip Morris. So, Philip Morris agreed that it is better for one person to control, because now we are diversifying into many areas like beedis and chewing tobacco... which are not their forte."
Sources, however, said the American tobacco major was not very comfortable with Modi's plans to diversify in noncigarette businesses. However , it had to give in considering the strength and experience of the Indian partner and its reach in the market. Philip Morris officials did not comment on the story despite several attempts.
Modi said his group will invest over Rs 2,000 crore in the coming years for expansion, and a majority of this will be pumped into GPI to fund its diversification plans as well as for a new factory in Mumbai. The cigarette business was not enough to sustain his group's vision of achieving a 30% growth in revenues and margins every year, he said. "The cigarette business is not growing at that rate. To achieve 30% growth, we cannot go with cigarette alone." While Modi's sons Lalit (the former IPL commissioner ) and Samir are on the company's board, his granddaughter Priyal (his daugther Charu's daughter) is helping him with the beedi business.
The company's beedi business is under the brand "Sona" while in chewing pan masala , it has the brand "Pan Vilas" which was launched early last year in some markets of the country. Modi said the agreement with Philip Morris also stipulates that if and when he decides to sell his holding, the American company will have the first right to buy it. "Only if they cannot buy will we have the right to sell it to someone else."
Foster's launches Art of Chilling global marketing campaign
MUMBAI: Beer brand Foster's, launched in 2001 in India, recently unveiled its Art of Chilling (AOC) global marketing campaign. The campaign was devised after studying how Indian audience relax and will associate with cricket, music, follow trends, travel or even simple everyday chilling activities like watching TV.
Foster's has also created events like Foster's Art of Chilling@Home Parties and Foster's LOL evenings. Mr. Deepaknath, category head, SABMiller India explains, "LOL Evenings allows consumers to chill out with friends by sharing of common interests, especially humour, which is core to the Australian essence of Foster's."
As part of the campaign Foster's has also setup Foster's AOC zones around the country. These AOC zones, which are essentially theme bars are currently present in 3 zones in Bangalore and the brand plans to roll them out to other markets as well.
Mr. Deepaknath claims the response to these outlets has been positive, "a few more outlets are asking us to replicate the zones in their outlets as well," he says. The brand is also engaging consumers in the digital medium through its newly launched web site, Facebook fan page and Twitter account.
Foster's has also created its created virtual characters called Chill Head who report about trends and topics touching consumers' interest covering gadgets, music and sports.
Foster's has also created events like Foster's Art of Chilling@Home Parties and Foster's LOL evenings. Mr. Deepaknath, category head, SABMiller India explains, "LOL Evenings allows consumers to chill out with friends by sharing of common interests, especially humour, which is core to the Australian essence of Foster's."
As part of the campaign Foster's has also setup Foster's AOC zones around the country. These AOC zones, which are essentially theme bars are currently present in 3 zones in Bangalore and the brand plans to roll them out to other markets as well.
Mr. Deepaknath claims the response to these outlets has been positive, "a few more outlets are asking us to replicate the zones in their outlets as well," he says. The brand is also engaging consumers in the digital medium through its newly launched web site, Facebook fan page and Twitter account.
Foster's has also created its created virtual characters called Chill Head who report about trends and topics touching consumers' interest covering gadgets, music and sports.
Tata Global targets revenue of $ 5 bn revenue
KOLKATA: Tata Global Beverages (erstwhile Tata Tea) is targetting a revenue of $ 5 billion, its Chairman Ratan Tata said today.
"We will have to meet the target of $ five billion to move up the value chain and increase presence in the high-end business," Tata told shareholders at the company's AGM here.
"This will be done through acquisitions and organic growth," he said.
Tata said the roadmap for Tata Global was to become a beverages company and food products which have nutritious value.
"We have also introduced ayurvedic products," he said. About the joint venture company with Pepsico, he said the entity would help distribution and increase the marketing reach of Tata Global products.
Tata said the company would not enter the carbonated drinks segment.
"We will also focus on new geographies", he said.
Emami to invest up to Rs 40 cr on new plant in North-East
New Delhi: Kolkata-based FMCG firm Emami today said it is setting up a new plant in the North-East of the country at an investment of up to Rs 40 crore as part of expansion plans.
Construction work on the new plant is likely to start in the next two months, the company said, adding that it is expected to be operational within two years.
"A new plant is coming up in the North-East of India. We will invest Rs 30-40 crore in it. We are finalising the land deals there. Construction work is likely to start in the next two months," Emami Executive Director Mohan Goenka said
However, he declined to reveal the name of the state where the new plant will come up.
Emami already has two plants in Assam and according to sources, the new plant - from where the company will manufacture the products of most of its brands, including Boro Plus and Navratna - is likely to come up in the same state.
At present, the company has around 13 facilities across the country. Goenka said setting up the new plant is in line with the company's strategy of sustaining an annual growth rate of 22 per cent over the next few years.
"Our annual growth is estimated to be around 22 per cent. To maintain this rate, we have to expand our production capacity," he said.
Emami expects to close this fiscal with a turnover of Rs 1,600 crore. Last fiscal, it had a turnover of Rs 1,250 crore.
In addition, the company is already in the process of setting up a plant in Bangladesh at an investment of Rs 15-20 crore.
This is expected to be operational in the next 3-4 months.
Sony India eyes Rs 2,000 crore business this festive season
KOLKATA: Consumer electronics major Sony India today said it is eyeing business worth Rs 2,000 crore during the current festive season, a 35 per cent growth over last year.
"We are aiming at sales of Rs 2,000 crore during this festive season, from August to October," Sony India Senior General Manager (Sales) Sunil Nayyar said here today.
He said the company hopes to garner sales of Rs 245 crore from the eastern region during the Durga Puja.
Nayyar said the growth would be in line with expansion in the overall market but there won't be a big shift in the market share in the major product areas that it operates in.
He said all three major products, television, cameras and laptops are expected to do better than last year.
The company is targeting a turnover of Rs 7,000 crore for the entire fiscal, about 30 per cent higher than 2010-11.
By 2015, the share of Sony's Indian operations in its total global turnover is expected to grow to 10 per cent, almost double from about 5 per cent currently,
Amway looking to set up manufacturing facility in West, South
VADODARA: Amway India Enterprises on Wednesday said it plans to set up a manufacturing facility with investment of Rs 400 crore to cater to the market in western and southern parts of the country.
Talking to reporters after launching the Nutrilite Kids Products in the kids range here, Amway vice-president Anchita Banerjee said, "We are planning to set up manufacturing plant in western India or south India for meeting the market demand."
No decision has been taken yet on the location, he said. "We are in the process of identifying the land. We are already in talks with state governments for the purpose. A total investment in this proposed facility will be around Rs 400 crore," he added. PTI
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