Success in my Habit

Saturday, December 10, 2011

Green energy to be made mandatory for powering cell towers

New Delhi: The Department of Telecom will make it mandatory for mobile companies to tap into renewable sources of energy for powering their towers.

Under the new rules, at least 50 per cent of towers and 20 per cent of the urban towers are to be powered by hybrid energy sources (renewable +grid) by 2015.

This will have to be scaled up to 75 per cent of rural towers and 33 per cent in urban areas by 2020.

The move is aimed at reducing the carbon emissions due to increased dependence on diesel. India has around 3.5 lakh telecom towers of which about 70 per cent are in rural areas. At present, 40 per cent power requirements are met by grid electricity and 60 per cent by diesel generators.

The diesel generators are of 10-15 KVA capacity and consume about 2 litres of diesel an hour and produce 2.63 kg of CO2 a litre, according to the Telecom Regulatory Authority of India. The total consumption is 2 billion litres of diesel and 5.3 million litres of CO2 is produced. For every KWH of grid electricity consumed, 0.84 kg of CO2 is emitted. Total CO2 emission is around 5 million tonnes of CO2 due to diesel consumption and around 8 million tonnes due to power grid per annum. To provide incentive to the tower companies, DoT sources said that there will be support from the Universal Services Obligation fund to meet the initial cost.

According to the telecom regulator, India's current renewable energy base is 18,455 MW (11 per cent of total installed base). Market analysts said that the Government should evolve a system whereby tower companies can directly withdraw power from Renewable Energy Service Companies (RESCOs) instead of the grid. “This is a win-win proposal because the RESCOs are assured of steady revenues and for the tower companies, it means lower dependence on diesel,” said the analyst.

Media, entertainment revenue to hit $25b by 2015: Ernst & Young

Mumbai: The Indian Media and Entertainment (M&E) industry registered revenues of $16.3 billion in 2010 and is expected to be in excess of $25 billion in the next four years, according to an Ernst & Young report ‘Spotlight on India's Entertainment Economy.' Growing digitisation, media consumption and improving demographics are leading drivers for industry growth.

Enticed by economic liberalisation, near double-digit annual growth, fast-growing middle class and a huge volume of demand for leisure and entertainment, global media companies have stepped up investment in India. . The Indian media and entertainment industry now finds itself at a new turning point — digital media. A surge in mass broadband adoption is expected, led by the launch of 3G and 4G services. By 2015, 90 per cent of India's projected 187 million broadband subscribers will access the net through wireless devices. This presents global M&E companies with exciting opportunities to develop “anytime, anywhere” content that caters to a new generation of Indian digital consumers, states the report.

“The M&E industry in India has been, and will continue to be, one of the biggest beneficiaries of India's favourable demographics,” said Mr Farokh Balsara, Ernst & Young's media and entertainment leader for Europe, West Asia , India and Africa. “Having one of the world's youngest populations, high volumes of content consumption, a favourable regulatory framework and growing digital adoption, makes India an attractive investment destination for global media and entertainment companies.”

Key findings in the report indicate that media and entertainment industry is lucrative for making investments. These are India's increasing per capita income, growing middle class and working population are generating huge domestic demand for leisure and entertainment. The country has more than 600 television channels, 100 million pay-television households, 70,000 newspapers and produces more than 1,000 films annually.

India has diverse regional markets with distinct cultures, languages and content preferences. These markets provide global media and entertainment companies with a variety of opportunities to deliver localised content. India's favourable regulations and reforms are creating investment opportunities for global media and entertainment companies.

Newspaper industry
The newspaper industry, which is facing declining readership in many international markets, continues to thrive in India, driven by increasing literacy rates, consumer spending and the growth of regional markets and specialty newspapers. Newspapers account for 42 per cent of all advertising spend in India — the most of any medium. The mandatory digitisation of India's television distribution infrastructure is driving growth of digital cable and DTH, creating a need for these companies to fund expansion. The third phase of radio licence auctions, expected soon, will see radio networks expanding their reach to add around 700 radio stations across the country.

“The growth strategies in most companies in the US and Western Europe are linked to India and other emerging markets,” said Mr John Nendick, Global Media and Entertainment Leader at Ernst & Young. “However, to succeed in India, global media and entertainment companies need to navigate unique challenges in the areas of content localisation, distribution and pricing, regulations and piracy.”

Volkswagen to source more parts from India for global operations

Mumbai: German car major Volkswagen AG aims to source more parts from India for its global operations, and also hopes to triple its annual component sourcing out of India to over €300 million euros (Rs 2,074 crore) over the next 3-5 years.

The carmaker looks to double the number of component suppliers to over 200 to expand its range of spare parts made for global markets. This move, apart from helping Volkswagen source cost-effective components, will also help it increase its localisation to over 90% for its muchawaited small car UP!, which will be launched here in the next two-three years.

The higher localisation will help Volkswagen price its small car aggressively and take on market leaders Maruti Suzuki and Hyundai India.

Mahesh Kodumudi, executive director for components purchasing for Volkswagen group India, told ET: "We are still seeing India as a very competitive sourcing base – there's a cost advantage of at least 10-15% over Western Europe. And having worked with Indian vendors over the past few years, their capabilities too have matured and we do see them playing a bigger role."

Volkswagen plans to invest close to €250 million (Rs 1,728 crore) over the next few years on tooling and vendor development as newer models like UP! are being introduced in the market. The company has already invested a similar amount since its entry.

The German company today sources power train components, engine and transmission parts, metallic parts, sheet metal and a lot of small plastic parts. The company will be sourcing close to 50 million euros (Rs 432 crore) of plastic parts annually.

This is part of an overall plan to source close to €1 billion worth components from India, both for domestic and global operations. Volkswagen AG sources €70-80 billion worth of components annually from across the world. Increased localisation will also help the company derisk itself of currency fluctuations.

Nokia Siemens to ramp up India investments

New Delhi: Even as Nokia Siemens Networks has globally announced cost-cutting measures, the telecom equipment maker is increasing investments into India.

The company has decided to ramp up its India operations in three core areas of mobile broadband, manufacturing and Global Network Operations Centres.

Hub of transformation
“India will be the hub of the transformation that NSN has initiated globally. Investments into India are being ramped up in key focus areas, including global delivery centres and manufacturing. So all of these facilities which gives us global scale and advantage of centralisation is being ramped up,” Mr Sandeep Girotra, head of Nokia Siemens in India, told Business Line.

NSN had earlier announced that it will cut 17,000 staff worldwide as part of a major global restructuring to focus on more profitable operations.

The company, which is jointly owned by Nokia and Siemens, is looking to improve profitability by reducing operating expenses and overheads by €1 billion by the end of 2013.

While the exact impact of this on NSN's India operations is not known, Mr Girotra said that 95 per cent of the work being done in the country fits in with the company's new global strategy.

New strategy
“The details are still not worked at the concept level. But this doesn't change the fact India is a priority market. Be it services or mobile broadband or manufacturing India is an important leg to NSN's global story. Only about 5-7 per cent of the business in Indian is not in the big picture which are being cleaned up,” Mr Girotra said.

He said the new global strategy was necessitated because the industry was going through a rapid transformation. “As a vendor we cannot be everything to everyone anymore. We need to be big in the areas where we want to play in. Concept of one stop shop is not relevant anymore.

“Therefore, the growth areas will be mobile broadband, customer experience, and optical. So, we are putting more investments into these areas and our India operations fits in well with this,” he said.

Microsoft: India no longer a preferred destination for MNCs

Global software major Microsoft said that for MNCs, India is no longer a preferred destination.
"It doesn't make sense any more. For MNCs India is no longer a preferred destination. We have lots of issues concerning our operation here," Microsoft India chairman Bhaskar Pramanik said when asked if the company is considering any R&D centre for West Bengal as it seeks to work closely with the state government.

He was speaking to reporters on the sidelines of Infocom 2011 conference.

Pramanik later clarified that he was speaking about technology and IT companies. "I think a lot of that need to be resolved. We have to be cautious about any new investment in the state," he said.

Asked what the issues were, he declined to list the challenges or issues the technology MNCs were facing. "I think you had better talk to Nasscom. It is the voice of the industry," he said.

Nasscom regional (east) head Suparno Moitra declined to comment.

Asked to throw more light on 'preferred destination', Pramanik said, "I think we look at everywhere in the world. I think choices are many," he said.

Meanwhile, reacting to the Centre's decision to suspend FDI in multi-brand retail till a consensus is evolved, Pramanik said he felt disappointed with the government's decision.

"FDI in all form is good, be it in retail or aviation," he said. "We have a strong corporate sector, central and state governments. Checks and controls could be put in place to ensure net gain for the country in terms of employment, growth and earning rather than being negative," he said.

Tuesday, December 6, 2011

DLF buys out Hilton's stake in hotel venture

New Delhi: Real estate major DLF Ltd has taken full control of its joint venture with Hilton Hotels before selling the hospitality property as part of its strategy to divest non-core assets. This will help DLF cut its debt of Rs 22,519 crore.

DLF acquired the additional 26 per cent stake in its joint venture company — DLF Hotels & Hospitality Ltd (DHHL) — from Aro Participation Ltd and Splendid Property Company Ltd, affiliates of Hilton International. At present, the company holds 74 per cent equity in DHHL.

According to people close to the deal, the valuation of the 26 per cent stake is nearly Rs 120 crore. The DLF spokesperson said, “This transaction was done to take complete ownership of the company and its underlying assets, including inbuilt hotel sites, with a view to monetise them,” he said, adding that it was a part of DLF’s ongoing non-core divestment strategy.

The company had earlier told Business Standard it was not in favour of offloading its stake in the Hilton JV as the hotel was in its mall premises in Delhi.

Confirming the development, a Hilton Worldwide spokesperson said, “DLF has bought the 26 per cent shareholding of Hilton Worldwide in the Hilton-DLF joint venture company. We value our relationship with DLF, and our association will continue through managing the DLF-owned Hilton Garden Inn brand hotel in Saket, New Delhi."

According to industry experts, the JV never went the way it was supposed to go. “It gives DLF full control over the venture. The obligations during the formation of the JV no longer exists. They had set a goal for 100 hotels, but could open only one,” a senior executive in a research firm said.

DLF recently adopted a strategy to divest its non-core businesses, which includes hospitality. It has also been in talks with several players for sale of Aman Hotels and Resorts.

“Hilton will no longer be restricted in its expansion plans. DLF can also make an exit from this venture now,” a senior analyst said.

The company’s net debt rose to Rs 22,519 crore, up Rs 1000 crore during the second quarter of the financial year. It aims to cut debt to Rs 19,000 crore from 19,500 crore by the end of this financial year and to Rs 10,000 crore by 2013 through the sale of its non-core assets.

Yesterday, DLF announced divesting its entire stake in Galaxy Mercantile Ltd, a JV between DLF Home Developers Ltd and Infrastructure Development Finance Company Ltd. The latter will buy the entire stake for Rs 450 crore.

It is also likely to conclude the Aman resort deal by early 2012. The company has got final bids from four to five companies and bankers are close to finalising the deal. It would offload its stake in the chain, while retaining the Delhi Aman property.

Khazanah, the Malaysian government’s wealth fund, is being seen as the most likely buyer. Other prominent bidders include Kingdom Holdings, the company which owns the Four Seasons Hotel, and a Chinese hospitality group, it is learnt.

Microsoft Dynamics crosses 2,000 customer mark in India

Microsoft Dynamics ERP and CRM solutions have crossed 2,000 customer milestone in a timeframe of less than five years across various industry sectors in the small and medium businesses (SMB) as well as enterprise segments in India. The company cited easy-to-use interface, along with capabilities such as quick implementation and adaptability to localized requirements as the reason for the achievement.
Subhomoy Sengupta, Group Director – Microsoft Business Solutions said, “This achievement is a result of our ability to offer a line of simple and easy-to-use Microsoft Dynamics range of solutions that shows clear business ROI and integrates easily with existing technologies that customers are familiar with or already have installed. It enables customer to make more informed decisions, adapt to new opportunities and has the ability to scale as their business grows.”
Some of the customers using Microsoft Dynamics solutions include Kamla Dials Limited & Ethos Quantum Solutions, Dhanuka Agritech, Bharat Group, Jaipur Carpets, Wire and Fabric, Dr. Lal PathLabs, Sharda Motor Industries, Jay Chemicals, Rohit Surfactants, Harrison Malayalam, Priyom Condiments, Securipax Packagaing, Perfect Pac Limited, Devyani Groups, Thakar Chemicals, Tyroo Media and Mangalam Electronics, Almondz Securities, Aegon Religare and Reva Proteins.

Indian Minister Wants Web Companies To Self-Censor User Content

Another day, another government trying to figure out how to censor the internet. This time it's India, where acting communications minister Kapil Sibal is meeting with officials from Google, Yahoo, Microsoft and Facebook to pressure them to self-censor user content, the New York Times reports.
The issue is that someone wrote something mean about a politician, Sonia Ghandi, on her Facebook page. That's right. While other countries come up with broader excuses for trying to interfere with what people can post online -- China says it's trying to stop porn, the US says it's trying to protect copyright holders -- Sibal is openly just upset about politicians being criticized. His solution, the report says, is to have web companies use humans to monitor and delete objectionable content before it gets posted.
Since TechCrunch has lots of readers in India, and uses Facebook for comments, I guess this means Facebook would be required to decide what comments people in the country are allowed to post here? Or would TechCrunch get blocked like it is in China if there are any comments by anyone th

Sunday, December 4, 2011

SAIL, Kobe Steel JV in a month: Beni Prasad

State-owned Steel Authority of India (SAIL) is likely to finalise within a month, a joint venture with Japan's Kobe Steel for a 0.5 million tonne (MT) mill in West Bengal to manufacture special grade steel.

"SAIL is finalising a joint venture with Kobe Steel and it is likely to be signed in a month's span. The total investment in the project will be $400 million (about Rs 2,000 crore," Steel Minister Beni Prasad Verma told PTI.
The JV will help SAIL acquire the Japanese company's patented technology, used for value added applications. The new unit will put into use Kobe Steel's iron-making technology to make nuggets

Verma said that after the initial 0.5 MT project, to be implemented at Alloy Steels Plant at Durgapur, its capacity will be doubled to one MT by adding another 0.5 MT module.

As far as technology goes, this will be a first-of-its- kind venture for SAIL.

Verma said both the companies are likely to have equal stake in the JV.

Meanwhile, SAIL is also in advance talks to finalise a joint venture with South Korea's POSCO for a 1.5 million tonne steel plant at Bokaro entailing about Rs 16,000 crore investment, Verma said.

Last month, SAIL Chairman C S Verma had said that Korean steel maker Posco will have management control in the JV.

SAIL and Posco have been in discussions to set up a 3 million tonnes a year steel plant at Bokaro in Jharkhand for more than a year.

The proposed plant with the use of Posco's patented Finex technology will produce very specialised steels, mainly for the automobile sector.

Finex is an environment-friendly, iron-making process where iron ore fines are directly used.

Not just for Railways: Now, 24x7 IRCTC kitchen in Noida

NEW DELHI: Railway passengers, executives and managers living in and around Noida can now avail of hygienic Indian and Chinese fare at an affordable rate.

Indian Railways Catering and Tourism Corporation (IRCTC) has set up a central kitchen in Noida, with a capacity of preparing 25,000 meals every day.

Besides Railways, IRCTC aims to cater to PSUs, MNCs, BPOs and several educational institutions in and around Noida, where there is a huge demand for fresh food at a reasonable price.

The 24x7 kitchen will serve both vegetarian and non-vegetarian meals. Initially, the cuisine will be restricted to Indian and Chinese, but the menu will be expanded to Continental dishes in the second phase.

After the catering job in trains was snatched from IRCTC and was given back to railways, the PSU is trying to diversify its business to keep itself afloat. It seeks to capture the fast growing food & beverage market by setting up more such kitchens in other parts of the country.

IRCTC will ensure that all relevant statutory compliances for preparing food will be adhered to in its state-of-the art kitchen. Medical tests for food-handlers, microbiological tests of food samples will be rigorously followed along with use of branded raw materials and ingredients to maintain high quality of the foodstuff. The PSU says the best of industry professionals will man its kitchen. It will adhere to HACCP/ISO 22000 (Hazard Analysis Critical Control Points) standards, and will also have in-house state-of-the-art lab and R&D facilities.

Buoyed by reasonably priced fare coupled with stringent hygienic standard, IRCTC is hopeful that it will give stiff competition to major airline catering units. "It will be providing a tailored catering service for all corporate occasions with a focus on quality and presentation....Anything from a simple sandwich luncheon to a formal executive boardroom spread," said an official.

According to its preliminary survey, there are around 250 offices and educational institutions located in and around Noida that will be catered by the central kitchen. "There is a great potential for the catering business in the satellite town since a large number of managers, executives and BPO employees are working in the area," said an official.