Mumbai: Microfinance institutions may soon be able to borrow up to $10 million in a year overseas.
In a press release issued on Monday, the Reserve Bank of India said that MFIs may be permitted to raise funds through External Commercial Borrowing (ECB) under the automatic route.
The move is expected to address the issue of liquidity that the microfinance sector has been witnessing in recent times, according to leading players in the industry.
The criteria
According to the RBI guidelines, MFIs should have a satisfactory borrowing relationship for at least three years with a scheduled commercial bank authorised to deal in foreign exchange.
The bank would also require to issued a certificate of due diligence on ‘fit and proper' status of the board or committee of management of the MFI that is borrowing.
The ECB funds should be routed through normal banking channels.
In addition, NBFC-MFIs will also be permitted to borrow from multilateral institutions, such as International Finance Corporation and Asian Development Bank, the RBI said.
Other MFIs will be permitted to avail themselves of ECBs from international banks, multilateral financial institutions, export credit agencies, overseas organisations and individuals, subject to certain conditions, said the RBI.
The RBI has also increased the ECB limit of NGOs (non-government organisations), engaged in microfinance activities, to $10 million in a financial year, as against the current $5 million.
Success in my Habit
Tuesday, December 27, 2011
Trade with Belgium goes beyond diamonds
Bengaluru: Non-diamond trade dominated by small and medium enterprises has created certain dynamics for bi-lateral trade between Belgium and India.
“Small enterprises in pharmaceuticals, biotech, clean energy and automotive ancillaries are shaping the bi-lateral trade to take it to the next level,” said Mr Pierre Vaesen, Belgium ambassador to India.
“At present the bi-lateral trade is largely driven by gems and jewellery which constitutes about 80 per cent of the bilateral trade. We want to diversify this trade to other sectors,” he added.
Belgian business interests in India cover ports, construction, banking and finance, chemicals and fertilisers, and solar energy. Zeebrugge port has been showcased in India to take up modernisation of ports.
“There has been increasing interest on India from Belgian companies and we are looking forward for reforms to take-off in India, especially foreign direct investments, in certain key sectors like retail, aviation and agriculture sectors,” said Mr Vaesen.
Belgium has emerged second biggest trade partner of India after Germany. Indian exports to Belgium touched €3.6 billion in 2010 and is expected to maintain the same trend in 2011. In the last decade (2000 to 2010), about 150 Belgian companies have invested $350 million in India and in return about 75 Indian companies have made Belgium their home to tap European markets.
In terms of geographic spread of Belgian companies, Mr Vaesen said western region (Mumbai and Pune) tops the list with 38 per cent and is followed by northern region (New Delhi) 24 per cent and South (Karnataka) 14 per cent and East (West Bengal) one per cent.
According to Mr Jayant Nadiger, Trade Commissioner of Flanders Belgium, “The Flemish Trade office has been operational for South India based in Bangalore since 1999. Flanders Belgium Industry has been active in south India since then in sectors like logistics, manufacturing, services, research and development among others.”
“Baekart, LMS, Xsysys, UCO, are among some of the Flemish companies present in South India and a few from this region have also established business in Flanders. ,” he added.
“Small enterprises in pharmaceuticals, biotech, clean energy and automotive ancillaries are shaping the bi-lateral trade to take it to the next level,” said Mr Pierre Vaesen, Belgium ambassador to India.
“At present the bi-lateral trade is largely driven by gems and jewellery which constitutes about 80 per cent of the bilateral trade. We want to diversify this trade to other sectors,” he added.
Belgian business interests in India cover ports, construction, banking and finance, chemicals and fertilisers, and solar energy. Zeebrugge port has been showcased in India to take up modernisation of ports.
“There has been increasing interest on India from Belgian companies and we are looking forward for reforms to take-off in India, especially foreign direct investments, in certain key sectors like retail, aviation and agriculture sectors,” said Mr Vaesen.
Belgium has emerged second biggest trade partner of India after Germany. Indian exports to Belgium touched €3.6 billion in 2010 and is expected to maintain the same trend in 2011. In the last decade (2000 to 2010), about 150 Belgian companies have invested $350 million in India and in return about 75 Indian companies have made Belgium their home to tap European markets.
In terms of geographic spread of Belgian companies, Mr Vaesen said western region (Mumbai and Pune) tops the list with 38 per cent and is followed by northern region (New Delhi) 24 per cent and South (Karnataka) 14 per cent and East (West Bengal) one per cent.
According to Mr Jayant Nadiger, Trade Commissioner of Flanders Belgium, “The Flemish Trade office has been operational for South India based in Bangalore since 1999. Flanders Belgium Industry has been active in south India since then in sectors like logistics, manufacturing, services, research and development among others.”
“Baekart, LMS, Xsysys, UCO, are among some of the Flemish companies present in South India and a few from this region have also established business in Flanders. ,” he added.
Ace ties up with Kotak Mahindra Bank
Mumbai: In a first such initiative among commodity derivatives space, the Kotak Group-anchored Ace Derivatives and Commodity Exchange (Ace) has tied-up with Kotak Mahindra Bank for seamless financing for agri commodity traders.
Termed as "ComFin", the platform allows traders to avail funds from Kotak Mahindra Bank for financing to customers for taking delivery of agri commodities on the exchange platform.
Many large and small traders avail short term funds from informal sources even at two-three per cent higher interest rate. "ComFin will address the latent need of funding requirement, and will help market participants transact and take or deliver commodities on the exchange efficiently and seamlessly," said Dilip Bhatia, CEO of Ace. Those who hold commodities and need funding against these can benefit the ComFin. Also, traders who have taken position on the exchange either for future leverage or taking delivery can avail this benefit.
Many market participants holding commodities or intending to take delivery on exchange require short term funding against these commodities. While the funding facility is available, the process is not smooth.
ComFin platform will make finance available seamlessly for deliveries while bridging the gap of short term funding.
According to the tie-up, Kotak Mahindra Bank will provide the funding to eligible market participants for taking deliveries.
"The ComFin - the prompt financing system - will benefit those traders who want short term fund for paying out to customer with deliver intent. Those who wish to take delivery and falling short of fund for that, can avail fund from formal sources at the competitive interest rate. Traders can also pay the margin of say 25 per cent and take full exposure of 100 per cent on the bank with intention of delivery in future. Even spot traders can take benefit of this system," Bhatia added.
Currently, the facility is available for Ace traders only which can be expanded to other exchange depending upon the requirement in future, said Narayan S A, President, Commercial Banking, Kotak Mahindra Bank.
"Kotak Mahindra being a formal source of financing, traders can avail loan from the bank at standard interest rate. The lending rate however, may vary depending upon the ticket size, risk involved and the nature of commodity," said Narayan.
Talking on the occasion Ramesh Abhishek, Chairman, Forward Markets Commission (FMC), said, "The system will aid market participants to avail seamless financing and in the longer run help small traders and farmers to trade and deliver on the exchange platform."
Ace has recently completed one year of operation as a multi commodity, national exchange witnessing a tremendous growth with the current average daily traded value of more than Rs 600 crore.
Termed as "ComFin", the platform allows traders to avail funds from Kotak Mahindra Bank for financing to customers for taking delivery of agri commodities on the exchange platform.
Many large and small traders avail short term funds from informal sources even at two-three per cent higher interest rate. "ComFin will address the latent need of funding requirement, and will help market participants transact and take or deliver commodities on the exchange efficiently and seamlessly," said Dilip Bhatia, CEO of Ace. Those who hold commodities and need funding against these can benefit the ComFin. Also, traders who have taken position on the exchange either for future leverage or taking delivery can avail this benefit.
Many market participants holding commodities or intending to take delivery on exchange require short term funding against these commodities. While the funding facility is available, the process is not smooth.
ComFin platform will make finance available seamlessly for deliveries while bridging the gap of short term funding.
According to the tie-up, Kotak Mahindra Bank will provide the funding to eligible market participants for taking deliveries.
"The ComFin - the prompt financing system - will benefit those traders who want short term fund for paying out to customer with deliver intent. Those who wish to take delivery and falling short of fund for that, can avail fund from formal sources at the competitive interest rate. Traders can also pay the margin of say 25 per cent and take full exposure of 100 per cent on the bank with intention of delivery in future. Even spot traders can take benefit of this system," Bhatia added.
Currently, the facility is available for Ace traders only which can be expanded to other exchange depending upon the requirement in future, said Narayan S A, President, Commercial Banking, Kotak Mahindra Bank.
"Kotak Mahindra being a formal source of financing, traders can avail loan from the bank at standard interest rate. The lending rate however, may vary depending upon the ticket size, risk involved and the nature of commodity," said Narayan.
Talking on the occasion Ramesh Abhishek, Chairman, Forward Markets Commission (FMC), said, "The system will aid market participants to avail seamless financing and in the longer run help small traders and farmers to trade and deliver on the exchange platform."
Ace has recently completed one year of operation as a multi commodity, national exchange witnessing a tremendous growth with the current average daily traded value of more than Rs 600 crore.
Facebook wants to be a Blue Chip
Founder and CEO of the social-networking giant Facebook has spent the last 18 months methodically preparing to look and act more like a Blue Chip business.
"There was a period in Microsoft's evolution where they said, we want to put a computer on everyone's desk," said Zuckerberg in a recent interview.
"That's the way that I want to run Facebook...We want to be operating in a way that we're working towards this longer vision of where we think the world should be," he told the Wall Street Journal.
Facebook plans to file early next year with the Securities and Exchange Commission to take the stock public in the second quarter of 2012, according to a person familiar with the matter.
The IPO could raise as much as 10 billion dollars at a valuation of more than 100 billion dollars.
As hard as it is to reach a public offering, it is even more difficult for young businesses to play head-to-head against tech stalwarts such as Apple Inc. and Microsoft Corp.
But interviews with Zuckerberg and others inside Facebook reveal the eight-year-old company is trying to emulate the influence, staying power, and meticulousness of the biggest technology companies.
Since last year, Facebook executives have been crafting dummy scripts for quarterly earnings calls, addressing imaginary questions from analysts about the company's revenue and profit, people familiar with the matter say.
They have even written a top-secret draft of an IPO prospectus, a role traditionally left to bankers.
The company's chief financial officer, David Ebersman, has been professionally auditing Facebook's financial statements each quarter, say people familiar with the matter, and avoiding the accounting approaches that raised questions for Groupon and Zynga.
The company has both scale and a strong brand, says Lise Buyer, a Silicon Valley-based IPO consultant.
But the big question, says Buyer is whether Facebook has the ability to operate profitability through ups and downs.
"The missing piece that we haven't seen yet is reliability. The blue chip stocks are the ones that people talk about belonging in widows and orphans funds. Historically, technology IPOs don't make that list. Because of its scale, Facebook could be different," she said.
"There was a period in Microsoft's evolution where they said, we want to put a computer on everyone's desk," said Zuckerberg in a recent interview.
"That's the way that I want to run Facebook...We want to be operating in a way that we're working towards this longer vision of where we think the world should be," he told the Wall Street Journal.
Facebook plans to file early next year with the Securities and Exchange Commission to take the stock public in the second quarter of 2012, according to a person familiar with the matter.
The IPO could raise as much as 10 billion dollars at a valuation of more than 100 billion dollars.
As hard as it is to reach a public offering, it is even more difficult for young businesses to play head-to-head against tech stalwarts such as Apple Inc. and Microsoft Corp.
But interviews with Zuckerberg and others inside Facebook reveal the eight-year-old company is trying to emulate the influence, staying power, and meticulousness of the biggest technology companies.
Since last year, Facebook executives have been crafting dummy scripts for quarterly earnings calls, addressing imaginary questions from analysts about the company's revenue and profit, people familiar with the matter say.
They have even written a top-secret draft of an IPO prospectus, a role traditionally left to bankers.
The company's chief financial officer, David Ebersman, has been professionally auditing Facebook's financial statements each quarter, say people familiar with the matter, and avoiding the accounting approaches that raised questions for Groupon and Zynga.
The company has both scale and a strong brand, says Lise Buyer, a Silicon Valley-based IPO consultant.
But the big question, says Buyer is whether Facebook has the ability to operate profitability through ups and downs.
"The missing piece that we haven't seen yet is reliability. The blue chip stocks are the ones that people talk about belonging in widows and orphans funds. Historically, technology IPOs don't make that list. Because of its scale, Facebook could be different," she said.
Indian IT beats manufacturing in job creation
The information technology sector led by the top three listed companies, TCS, Infosys and Wipro, created the most jobs in the five years to FY11 compared with other sectors, boosted by an over two-fold jump in aggregate revenue.
The analysis by ET Intelligence Group of the trend in job creation by the organised sector reflects the rising clout of services companies. Of the 14.3 lakh jobs created between FY06 and FY11, over 8 lakh (56%) were added by companies in the services sectors, which includes banking and finance, healthcare, hospitality, technology, telecom, trading and retail. These companies created four out of seven jobs in the country over the past five years, far outpacing the manufacturing sector.
IT sector players led the pack, adding as many as 4.5 lakh employees. TCS, Infosys and Wipro together added 2.4 lakh people, or more than half the total additions for the sector. These companies were also the top three job creators in the country, in that order, during the period.
The data is based on the hiring trend of a sample of 600 listed companies that reported annual financials along with headcount information since 2006.
Changing trend in GDP
"The findings are a reflection of the changing trend in India's GDP composition. As in other economies, we have gradually shifted from the agrarian phase to the services phase. But, in the process, we sort of skipped the manufacturing phase," says Ma Foi Randstad's MD and CEO E Balaji. Ma Foi is a Chennai-based staffing and HR services firm.
Manufacturing takes backseat
The data reveals the proportion of services sector jobs in the total headcount of the sample rose to 46.5% in FY11 from 41.8% in FY06. The sample companies expanded the aggregate headcount by 48% to 43.8 lakh employees between FY06 and FY11.
Manufacturing jobs did increase by 35% to 23.3 lakh during the period, but at a much slower pace compared to the 66% growth in services sector employment.
Manish Sabharwal, who heads temporary staffing company TeamLease Services, believes the increasingly capital-intensive nature of India's manufacturing businesses is a major reason for lower job creation in the sector. Besides, the rising trend of shifting production and employees off the balance sheet through sub-contracting and temporary workers has also reduced the payroll of manufacturing players, he adds.
Sabharwal says just 12% of the total jobs in the country are now created by the manufacturing sector. "Bigger manufacturing companies have replaced people with machines, thereby escalating capital intensity. It is a mistake that needs immediate improvement. The country needs low-skill and high-productivity manufacturing," he adds.
The falling share of manufacturing in new jobs creation is also worrisome since this would curtail low-skill employment. Given its requirement for high-skilled people, the services sector alone will not be able to cater to the rising workforce in the country, experts say.
Ratings firm CRISIL's Chief Economist DK Joshi believes manufacturing has to emerge as the critical employment generator in future.
"In the next 10 years, 120 million people will join the workforce (in India). Where are we going to employ them if not in manufacturing?" Joshi says the new manufacturing policy, approved in October, will play an important role in job creation.
The analysis by ET Intelligence Group of the trend in job creation by the organised sector reflects the rising clout of services companies. Of the 14.3 lakh jobs created between FY06 and FY11, over 8 lakh (56%) were added by companies in the services sectors, which includes banking and finance, healthcare, hospitality, technology, telecom, trading and retail. These companies created four out of seven jobs in the country over the past five years, far outpacing the manufacturing sector.
IT sector players led the pack, adding as many as 4.5 lakh employees. TCS, Infosys and Wipro together added 2.4 lakh people, or more than half the total additions for the sector. These companies were also the top three job creators in the country, in that order, during the period.
The data is based on the hiring trend of a sample of 600 listed companies that reported annual financials along with headcount information since 2006.
Changing trend in GDP
"The findings are a reflection of the changing trend in India's GDP composition. As in other economies, we have gradually shifted from the agrarian phase to the services phase. But, in the process, we sort of skipped the manufacturing phase," says Ma Foi Randstad's MD and CEO E Balaji. Ma Foi is a Chennai-based staffing and HR services firm.
Manufacturing takes backseat
The data reveals the proportion of services sector jobs in the total headcount of the sample rose to 46.5% in FY11 from 41.8% in FY06. The sample companies expanded the aggregate headcount by 48% to 43.8 lakh employees between FY06 and FY11.
Manufacturing jobs did increase by 35% to 23.3 lakh during the period, but at a much slower pace compared to the 66% growth in services sector employment.
Manish Sabharwal, who heads temporary staffing company TeamLease Services, believes the increasingly capital-intensive nature of India's manufacturing businesses is a major reason for lower job creation in the sector. Besides, the rising trend of shifting production and employees off the balance sheet through sub-contracting and temporary workers has also reduced the payroll of manufacturing players, he adds.
Sabharwal says just 12% of the total jobs in the country are now created by the manufacturing sector. "Bigger manufacturing companies have replaced people with machines, thereby escalating capital intensity. It is a mistake that needs immediate improvement. The country needs low-skill and high-productivity manufacturing," he adds.
The falling share of manufacturing in new jobs creation is also worrisome since this would curtail low-skill employment. Given its requirement for high-skilled people, the services sector alone will not be able to cater to the rising workforce in the country, experts say.
Ratings firm CRISIL's Chief Economist DK Joshi believes manufacturing has to emerge as the critical employment generator in future.
"In the next 10 years, 120 million people will join the workforce (in India). Where are we going to employ them if not in manufacturing?" Joshi says the new manufacturing policy, approved in October, will play an important role in job creation.
Sunday, December 25, 2011
Thinksoft bags Rs.5-crore RBI order for testing solution
Financial software testing firm Thinksoft Global Services Friday said it has bagged a Rs.50-million (Rs.5 crore) order from the Reserve Bank of India (RBI) to deliver a user acceptance testing solution.
?We will deliver an automated regression test pack to the central bank using its in-house tool (Artemis) for financial services applications. The project management includes test strategy, planning and execution,? Thinksoft Chairman Asvini Kumar said in a statement.
The Chennai-based IT firm helps clients reduce software product life cycle costs and deploy `business ready software' within compressed timelines.
The deal is valued at Rs.50 million and the testing cycles will be completed in the next 12 months as the RBI is firm on getting the end state quality right. Our test automation framework will help achieve significant savings in test execution effort in a regression testing scenario,? Kumar said.
The central bank commissioned global consulting firm KPMG to help it in selecting an independent testing vendor.
?We will deliver an automated regression test pack to the central bank using its in-house tool (Artemis) for financial services applications. The project management includes test strategy, planning and execution,? Thinksoft Chairman Asvini Kumar said in a statement.
The Chennai-based IT firm helps clients reduce software product life cycle costs and deploy `business ready software' within compressed timelines.
The deal is valued at Rs.50 million and the testing cycles will be completed in the next 12 months as the RBI is firm on getting the end state quality right. Our test automation framework will help achieve significant savings in test execution effort in a regression testing scenario,? Kumar said.
The central bank commissioned global consulting firm KPMG to help it in selecting an independent testing vendor.
Friday, December 23, 2011
Actis to invest $71 m in auto component firm Endurance Tech
New Delhi: Private equity firm Actis has announced an investment of $71 million in privately-held auto component firm Endurance Technologies. UK-based Actis, which has $4.6 billion worth of funds under management and specifically focuses on emerging markets, has been extremely bullish on the Indian automotive industry and had earlier invested in Punjab Tractors, Avtec and Sandhar.
Endurance manufactures aluminium die castings, suspensions, transmissions and brakes, with a focus on the motorcycle and scooter market, along with the market for high-end engine and transmission components for passenger and commercial vehicles.
The majority of the company's revenues come from two-wheeler and three-wheeler vehicle manufacturers, including Bajaj, Yamaha, Suzuki, Honda Motorcycles and Scooters and Royal Enfield. In the passenger car segment, the company supplies to firms such as Daimler, Audi, Fiat and Porsche.
The Endurance group consists of Endurance Technologies and its subsidiaries HTTS (India), Amann Druckguss (Germany), Endurance Fondalmec (Italy) and a joint venture with Magnetti Marrelli in India. Endurance is led by founder and Managing Director, Mr Anurang Jain.
Excited to partner
On the deal, Mr J.M. Trivedi, Head of South Asia at Actis, said: “Actis has a deep understanding of the automotive industry gained through our investments in Punjab Tractors, Avtec and Sandhar. We are excited to partner with Mr Anurang Jain and look forward to working with the company as it continues to grow and develop.”
The auto component industry in India is expected to grow from $30 billion currently to $110 billion by 2020, according to industry estimates.
Endurance manufactures aluminium die castings, suspensions, transmissions and brakes, with a focus on the motorcycle and scooter market, along with the market for high-end engine and transmission components for passenger and commercial vehicles.
The majority of the company's revenues come from two-wheeler and three-wheeler vehicle manufacturers, including Bajaj, Yamaha, Suzuki, Honda Motorcycles and Scooters and Royal Enfield. In the passenger car segment, the company supplies to firms such as Daimler, Audi, Fiat and Porsche.
The Endurance group consists of Endurance Technologies and its subsidiaries HTTS (India), Amann Druckguss (Germany), Endurance Fondalmec (Italy) and a joint venture with Magnetti Marrelli in India. Endurance is led by founder and Managing Director, Mr Anurang Jain.
Excited to partner
On the deal, Mr J.M. Trivedi, Head of South Asia at Actis, said: “Actis has a deep understanding of the automotive industry gained through our investments in Punjab Tractors, Avtec and Sandhar. We are excited to partner with Mr Anurang Jain and look forward to working with the company as it continues to grow and develop.”
The auto component industry in India is expected to grow from $30 billion currently to $110 billion by 2020, according to industry estimates.
US to invest $1 trillion in India: Nirupama Rao
Kochi: US will invest $1 trillion towards infrastructure development in India to meet the needs of a growing population, said Nirupama Rao, India's ambassador to the US. She was addressing members of the Kerala Chamber of Commerce and Industry ( in Kochi on Thursday.
"By March 2012, a trade delegation led by US secretary of commerce John E Bryson will visit India to discuss this investment. An 'evergreen revolution' similar to the Green Revolution is planned with US expertise to increase agricultural production and rural income. Space technology will come in handy for predicting monsoon and creating new linkages from farm to market," she revealed.
"The political engagement between India and the US has strengthened significantly and the strategic understanding has deepened. The partnership is multi-faceted and it extends to all activities that touch all aspects of the human endeavour -- from education, health, agriculture to our concerns in peace, security and human dignity. A strategic dialogue was established between the two countries in 2009 and has identified five principal areas for co-operation," she said.
"The two countries are also working together to have a stable economy in Africa and Afghanistan. A global disease detachment centre is planned as part of health cooperation. We will also focus on women's empowerment and combating maritime piracy. Indo-Pacific maritime trade cooperation will be beneficial for both the countries."
Rao also suggested that Kerala, a natural tourist destination, should be promoted more aggressively in the US.
Deepak L Aswani, chairman of KCCI, Jasmin Karim, convenor of KCCI Ladies' Forum, Sheela Kochouseph, joint convenor, KCCI Ladies's Forum, and Savio Mathew, secretary of KCCI, were also present.
"By March 2012, a trade delegation led by US secretary of commerce John E Bryson will visit India to discuss this investment. An 'evergreen revolution' similar to the Green Revolution is planned with US expertise to increase agricultural production and rural income. Space technology will come in handy for predicting monsoon and creating new linkages from farm to market," she revealed.
"The political engagement between India and the US has strengthened significantly and the strategic understanding has deepened. The partnership is multi-faceted and it extends to all activities that touch all aspects of the human endeavour -- from education, health, agriculture to our concerns in peace, security and human dignity. A strategic dialogue was established between the two countries in 2009 and has identified five principal areas for co-operation," she said.
"The two countries are also working together to have a stable economy in Africa and Afghanistan. A global disease detachment centre is planned as part of health cooperation. We will also focus on women's empowerment and combating maritime piracy. Indo-Pacific maritime trade cooperation will be beneficial for both the countries."
Rao also suggested that Kerala, a natural tourist destination, should be promoted more aggressively in the US.
Deepak L Aswani, chairman of KCCI, Jasmin Karim, convenor of KCCI Ladies' Forum, Sheela Kochouseph, joint convenor, KCCI Ladies's Forum, and Savio Mathew, secretary of KCCI, were also present.
Indian start-ups : Light robots for physically-challenged
There is so much talk of robots doing jobs more efficiently than us. But Eythor Bender feels that if robotics were combined with a person's brain, we could actually outshine robots! "If you can't beat 'em, join 'em, or as we say, even wear them!" he said.
The company, Ekso Bionics - formerly Berkeley Bionics - that Bender is CEO of, does just that. It makes exoskeletans, or light robots that you can wear to increase your efficiency. for instance, soldiers - who often have chronic back injuries from carrying heavy loads across rough terrains - can carry a lot more. Ekso's exoskeletans could help a person carry up to 200 pounds on their back for 20 kilometres for up to six hours.
Stroke, paralysis and osteoporosis patients as well as anybody with mobility issues or in a wheelchair can walk. "When I'm 80 years old and want to go skiing or snowboarding, I can do so by just wearing a bionic device instead of undergoing surgeries," said Bender.
Most bionic devices today need to be surgically implanted, which bring their own complications. This non-invasiveness, and the fact that it can be donned like a piece of clothing, is what makes Ekso's product distinctive. The company spun out of the University of California (UC) Berkeley in 2005. Grants, including a $10-million DARPA grant, and a partnership with defence giant Lockheed Martin helped Ekso focus strictly on R&D and develop products for the US military. Now that its product is market-ready, it will launch in January 2012. "While it is revolutionary, the cost factor means it will not be a market that grows quickly," said Larry Fisher, a technology research consultant.
While he was at ABI Research, Fisher helped bring out a study which found that the overall market for exoskeletons, powered prostheses and optical sensory devices will exceed $877 million in 2020. Of this, exoskeletons will account for sales of just $292 million. Just 11,000 units will be delivered during this decade.
Ekso's product is indeed very expensive, costing approximately $130,000, plus an annual service charge of about $10,000. This is obviously unaffordable for a typical patient. But then, Ekso is not targeting them directly yet. In 2012, it plans to sell directly to 11 rehabilitation centres in the US, including the renowned Rehabiliation Institute of Chicago (RIC), where the world's first bionic man Jesse Sullivan got his legendary bionic arm.
Down the road, Ekso plans to do some more R&D and come up with products that specifically target end users by around 2014. These will be cheaper, and initially customised, but eventually will be available off the shelf. These will cost about $30,000 to $50,000, depending on the features, which is roughly what high-end wheelchairs cost today.
The market is huge: Bender said the US alone has over 1.5 million amputees and there are over 70 million people in wheelchairs. When Ekso brings out its consumercentric products in 2014, it also plans to focus on creating the requisite customer experience by setting up what it calls "exocentres".
The company, Ekso Bionics - formerly Berkeley Bionics - that Bender is CEO of, does just that. It makes exoskeletans, or light robots that you can wear to increase your efficiency. for instance, soldiers - who often have chronic back injuries from carrying heavy loads across rough terrains - can carry a lot more. Ekso's exoskeletans could help a person carry up to 200 pounds on their back for 20 kilometres for up to six hours.
Stroke, paralysis and osteoporosis patients as well as anybody with mobility issues or in a wheelchair can walk. "When I'm 80 years old and want to go skiing or snowboarding, I can do so by just wearing a bionic device instead of undergoing surgeries," said Bender.
Most bionic devices today need to be surgically implanted, which bring their own complications. This non-invasiveness, and the fact that it can be donned like a piece of clothing, is what makes Ekso's product distinctive. The company spun out of the University of California (UC) Berkeley in 2005. Grants, including a $10-million DARPA grant, and a partnership with defence giant Lockheed Martin helped Ekso focus strictly on R&D and develop products for the US military. Now that its product is market-ready, it will launch in January 2012. "While it is revolutionary, the cost factor means it will not be a market that grows quickly," said Larry Fisher, a technology research consultant.
While he was at ABI Research, Fisher helped bring out a study which found that the overall market for exoskeletons, powered prostheses and optical sensory devices will exceed $877 million in 2020. Of this, exoskeletons will account for sales of just $292 million. Just 11,000 units will be delivered during this decade.
Ekso's product is indeed very expensive, costing approximately $130,000, plus an annual service charge of about $10,000. This is obviously unaffordable for a typical patient. But then, Ekso is not targeting them directly yet. In 2012, it plans to sell directly to 11 rehabilitation centres in the US, including the renowned Rehabiliation Institute of Chicago (RIC), where the world's first bionic man Jesse Sullivan got his legendary bionic arm.
Down the road, Ekso plans to do some more R&D and come up with products that specifically target end users by around 2014. These will be cheaper, and initially customised, but eventually will be available off the shelf. These will cost about $30,000 to $50,000, depending on the features, which is roughly what high-end wheelchairs cost today.
The market is huge: Bender said the US alone has over 1.5 million amputees and there are over 70 million people in wheelchairs. When Ekso brings out its consumercentric products in 2014, it also plans to focus on creating the requisite customer experience by setting up what it calls "exocentres".
EBay adds invoice payments to PayPal with BillSafe acquisition
EBay is continuing its buying spree, snapping up Germany's BillSafe, a payment-by-invoice provider. The new acquisition will be rolled up into PayPal, which made a minority investment in BillSafe last year and collaborated on a joint online invoice payment solution for e-commerce customers.
BillSafe allows customers to purchase a product immediately and pay for it by invoice later. This gives merchants and consumers another way to pay using PayPal. BillSafe is already used by 15 million account holders in Germany, where 19.6 percent of e-commerce transactions were paid by invoice. Paying by invoice is also the most popular form of payment in Austria, Germany, Switzerland and the Netherlands, said BillSafe.
BillSafe allows customers to purchase a product immediately and pay for it by invoice later. This gives merchants and consumers another way to pay using PayPal. BillSafe is already used by 15 million account holders in Germany, where 19.6 percent of e-commerce transactions were paid by invoice. Paying by invoice is also the most popular form of payment in Austria, Germany, Switzerland and the Netherlands, said BillSafe.
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