Financial services secretary, DK Mittal has said that the government is working on savings banks account number portability. This comes at a time when the central bank, Reserve Bank of India has favoured looking into the matter once every account holder has a number issued by the Unique Identification Authority of India or UIDAI.
Mittal, however, said that banks would have to work on identification code, know your customers (KYC) norms and core banking solution ( CBS) for implementing the savings bank account number portability.
"We want to do it (savings a/c number portability). Right now there are some technical problems...we have identified them. We will overcome them soon," he said.
Earlier RBI's deputy governor KC Chakrabarty had also said that account number portability remains a challenge in terms of technology..
The move would help customers change banks, without the need of going through the KYC norms again.
As of now there is no country which offers complete bank account number portability, though rudimentary form is available in some European countries such as Sweden.
On the issue of capital infusion in state run banks, Mittal said that capital infusion in PSU banks would be completed by the end of this fiscal. "We will complete the process of bank recapitalisation by March 31," he said. the government has made budget provision of Rs 6,000 crore for capital infusion in PSU banks in the current fiscal.
Success in my Habit
Wednesday, January 4, 2012
Solar ATMs fuel rural revolution in India
EW DELHI: An Indian start-up is catalysing a quiet revolution by designing, developing and installing unique solar-powered ATMs in rural areas.
The initial lot of 400 solar ATMs, aptly called Gramateller ('gram' means village), the world's largest order, placed by the State Bank of India ( SBI), has been winning accolades for performance and substantial energy savings.
The ATMs were installed in 2010-11 across several states, usually within 20-50 km of the district headquarters, Vijay Babu, CEO of Vortex Engineering, which makes these units, told IANS from Chennai.
Following SBI's success with solar ATMs, the Catholic Syrian Bank also placed an order for 50 Gramatellers and Indian Bank for 20, while 10 more have been ordered by other banks, he added.
Both Babu and Lakshminarayan Kannan, who founded Vortex, are the alumni of the Indian Institute of Technology-Madras (IIT-M) and the brains behind the Gramateller.
"Our plans to operate ATMs on solar power were greeted with utter disbelief. We faced challenges initially in getting them adopted by our end users, the rural folks, who are not particularly tech-savvy. But once they realised that they were getting control of their own money, they accepted it wholeheartedly," said Babu.
"The workload has increased with more and more people using these facilities which, in most cases, are the only ATMs within 20 km or more, thanks to the solar power backup," added Babu.
The two entrepreneurs took up the project in 2004-05 at IIT-M's suggestion, developing and fine-tuning the product until it became commercially viable in 2008-09.
The IIT-M, which had been initially approached by the banks to develop a robust rural alternative to the existing ATMs, passed on the proposal to Vortex. Babu and Kannan have since inked a royalty agreement with their alma mater.
"Conventional ATMs may not be viable in areas subject to 8 to 10 hours of power cuts, given their dependence on gensets and air-conditioning. But thanks to the rural Gramateller, villagers don't have to undertake time-consuming trips to cities or towns for money," said Kannan.
Vortex is the only Indian company making it to the Time magazine 2011 list of "10 start-ups that will change your life", selected out of 31 companies honoured as "Technology Pioneers" by the World Economic Forum.
Vortex was recently selected as the latest entrant to Business Call to Action (BCtA), a global initiative that encourages private sector efforts to fight poverty, supported by the UN Development Programme, among others.
"The 'no frills' Gramateller has a 12-hour power back-up, provided there is good sunlight at least for five hours daily. Solar panels convert these rays into electrical energy, storing them in a battery. A single unit saves more than 90 per cent of the yearly expenditure incurred on operating an ATM, which works out to Rs.1.44 lakh, half of the amount being accounted by air-conditioning," said Sabarinath Nair, marketing manager, Vortex.
Gramateller comes with a biometric touch pad to prevent fraud and tell villagers that their money is safe. It can also dispense soiled notes in the interiors where crisp currency notes are suspected of being fakes, Nair said
Regular ATMs were priced between Rs.3.5-5 lakh apiece. They needed another Rs.60,000 and Rs.80,000 for the UPS and AC. Gramatellers cost around Rs.3 lakh each, which included a built-in UPS and did not need air-conditioning, he said.
Solar panels for a unit require an additional investment of Rs.1.5 lakh, but have near zero operational cost. Unlike large diesel gensets, these pay for themselve within two years.
Given Gramateller's success in harnessing solar energy and its commercial viability, several developing countries from Africa and East Asia are evincing interest in the technology, said Babu.
The initial lot of 400 solar ATMs, aptly called Gramateller ('gram' means village), the world's largest order, placed by the State Bank of India ( SBI), has been winning accolades for performance and substantial energy savings.
The ATMs were installed in 2010-11 across several states, usually within 20-50 km of the district headquarters, Vijay Babu, CEO of Vortex Engineering, which makes these units, told IANS from Chennai.
Following SBI's success with solar ATMs, the Catholic Syrian Bank also placed an order for 50 Gramatellers and Indian Bank for 20, while 10 more have been ordered by other banks, he added.
Both Babu and Lakshminarayan Kannan, who founded Vortex, are the alumni of the Indian Institute of Technology-Madras (IIT-M) and the brains behind the Gramateller.
"Our plans to operate ATMs on solar power were greeted with utter disbelief. We faced challenges initially in getting them adopted by our end users, the rural folks, who are not particularly tech-savvy. But once they realised that they were getting control of their own money, they accepted it wholeheartedly," said Babu.
"The workload has increased with more and more people using these facilities which, in most cases, are the only ATMs within 20 km or more, thanks to the solar power backup," added Babu.
The two entrepreneurs took up the project in 2004-05 at IIT-M's suggestion, developing and fine-tuning the product until it became commercially viable in 2008-09.
The IIT-M, which had been initially approached by the banks to develop a robust rural alternative to the existing ATMs, passed on the proposal to Vortex. Babu and Kannan have since inked a royalty agreement with their alma mater.
"Conventional ATMs may not be viable in areas subject to 8 to 10 hours of power cuts, given their dependence on gensets and air-conditioning. But thanks to the rural Gramateller, villagers don't have to undertake time-consuming trips to cities or towns for money," said Kannan.
Vortex is the only Indian company making it to the Time magazine 2011 list of "10 start-ups that will change your life", selected out of 31 companies honoured as "Technology Pioneers" by the World Economic Forum.
Vortex was recently selected as the latest entrant to Business Call to Action (BCtA), a global initiative that encourages private sector efforts to fight poverty, supported by the UN Development Programme, among others.
"The 'no frills' Gramateller has a 12-hour power back-up, provided there is good sunlight at least for five hours daily. Solar panels convert these rays into electrical energy, storing them in a battery. A single unit saves more than 90 per cent of the yearly expenditure incurred on operating an ATM, which works out to Rs.1.44 lakh, half of the amount being accounted by air-conditioning," said Sabarinath Nair, marketing manager, Vortex.
Gramateller comes with a biometric touch pad to prevent fraud and tell villagers that their money is safe. It can also dispense soiled notes in the interiors where crisp currency notes are suspected of being fakes, Nair said
Regular ATMs were priced between Rs.3.5-5 lakh apiece. They needed another Rs.60,000 and Rs.80,000 for the UPS and AC. Gramatellers cost around Rs.3 lakh each, which included a built-in UPS and did not need air-conditioning, he said.
Solar panels for a unit require an additional investment of Rs.1.5 lakh, but have near zero operational cost. Unlike large diesel gensets, these pay for themselve within two years.
Given Gramateller's success in harnessing solar energy and its commercial viability, several developing countries from Africa and East Asia are evincing interest in the technology, said Babu.
Auto Expo: Global carmakers to go greener, bigger at the show
MUMBAI: Fuel-efficient cars and a slew of new SUV models will be unveiled at Auto Expo later this week as global carmakers continue to rev up their activity in one of the world's few growth engines despite a recent slowdown in sales.
Around 50 new models will be presented to hundreds of delegates and half a million visitors as carmakers look to move on from a year of sluggish sales due to high interest rates and rising costs and fuel prices in Asia's third-largest economy.
The debut of South Korea's Ssangyong, owned by Mahindra & Mahindra, and product launches from Toyota Motor Corp and Renault SA will underline the country's importance to the world's biggest carmakers.
"The overwhelming feeling is that this current sales slowdown is a temporary phenomenon and global carmakers are certainly betting on India to bounce back. There's no slackening of interest here," R.C. Bhargava, chairman of Maruti Suzuki , told Reuters.
"Everybody is working on hybrid, fuel-efficient and green technology vehicles. There's an exciting race to find a small, cheap hybrid car for India, which will certainly be a winner."
Jaguar Land Rover, owned by India's Tata Motors, will skip the overlapping North American International Auto Show in Detroit to focus on the India event, while Ford Motor Co said it will make a world-first announcement in New Delhi. Car sales in India grew 30 percent in the fiscal year to end-March 2011, cheering global carmakers as economic turmoil hit sales in developed markets. Since then, interest rate hikes by Reserve Bank of India and rising input costs that pushed up prices have dented demand as economic growth cools.
The small-car segment, made famous by Tata's ultra-cheap Nano and targeted by firms such as General Motors Co and Fiat SpA's Chrysler, has suffered most as first-time buyers balk at the increased cost of credit or stick with a motorcycle, considered a family vehicle in India.
Still, the Indian economy is likely to grow at around 7 percent this fiscal year and rising salaries and a rapidly-growing middle class mean it remains one of the world's most exciting markets for automakers.
GREEN VS GAS-GUZZLERS
Led by the launch of Mahindra's first-ever electric cars following its 2010 acquisition of Reva and the first glimpse of a hybrid model of Maruti's popular Swift hatchback, the expo will see a slew of fuel-efficient and green technology launches.
Around 50 new models will be presented to hundreds of delegates and half a million visitors as carmakers look to move on from a year of sluggish sales due to high interest rates and rising costs and fuel prices in Asia's third-largest economy.
The debut of South Korea's Ssangyong, owned by Mahindra & Mahindra, and product launches from Toyota Motor Corp and Renault SA will underline the country's importance to the world's biggest carmakers.
"The overwhelming feeling is that this current sales slowdown is a temporary phenomenon and global carmakers are certainly betting on India to bounce back. There's no slackening of interest here," R.C. Bhargava, chairman of Maruti Suzuki , told Reuters.
"Everybody is working on hybrid, fuel-efficient and green technology vehicles. There's an exciting race to find a small, cheap hybrid car for India, which will certainly be a winner."
Jaguar Land Rover, owned by India's Tata Motors, will skip the overlapping North American International Auto Show in Detroit to focus on the India event, while Ford Motor Co said it will make a world-first announcement in New Delhi. Car sales in India grew 30 percent in the fiscal year to end-March 2011, cheering global carmakers as economic turmoil hit sales in developed markets. Since then, interest rate hikes by Reserve Bank of India and rising input costs that pushed up prices have dented demand as economic growth cools.
The small-car segment, made famous by Tata's ultra-cheap Nano and targeted by firms such as General Motors Co and Fiat SpA's Chrysler, has suffered most as first-time buyers balk at the increased cost of credit or stick with a motorcycle, considered a family vehicle in India.
Still, the Indian economy is likely to grow at around 7 percent this fiscal year and rising salaries and a rapidly-growing middle class mean it remains one of the world's most exciting markets for automakers.
GREEN VS GAS-GUZZLERS
Led by the launch of Mahindra's first-ever electric cars following its 2010 acquisition of Reva and the first glimpse of a hybrid model of Maruti's popular Swift hatchback, the expo will see a slew of fuel-efficient and green technology launches.
Bajaj Auto unveils small car RE 60 in partnership with Nissan and Renault
NEW DELHI: Bajaj Auto on Tuesday unveiled a mini four wheeler for intra-city urban transportation targetting three wheeler customers. ( Bajaj RE60: View pics )
The company, which had in 2008 showcased a concept small car but decided not to go ahead with the project, will launch the new product named RE60 later this year.
"Certainly, this is a product, the core customer for which are those who use a three wheeler," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here.
He said the RE60, powered by a 200 cc rear mounted petrol engine could also be sold in overseas markets where BAL's three wheelers are exported.
Bajaj said the company had spent nearly four years in developing the product that has a top speed of 70 kmph with a highest mileage of 35kmpl.
"This vehicle has been designed for intra-city passenger transport keeping in mind intra-city duty cycles and safety requirements," he added.
Commenting on the potential of the vehicle, he said the company expects a big growth opportunity by targeting the three wheeler segment.
The RE60 will be manufacturered in Bajaj's plant in Aurangabad and resembles an over-sized hatchback with an elevated roof.
Bajaj, however, did not share sales targets for the new product but said opportunities are not only in the domestic market but overseas as well.
"We make about 5,20,000 three-wheelers a year of which only 2,00,000 are sold in India and rest exported. So we see markets like Sri Lanka, which could be the first export market has huge potential for RE60," he said.
Asked about the association with Renault-Nissan alliance, Bajaj said: "They have not seen the product yet and will be seeing it at the Auto-Expo. Once they see it, we will decide the way forward."
As per an agreement with the Renault-Nissan alliance, BAL was supposed to develop and manufacture the vehicle and sold under the badge of the alliance.
In January, 2008 BAL had unveiled its concept passenger car with an expected price of USD 3000. It had partnered Renault-Nissan for the ultra low cost (ULC) car project.
The ULC was first scheduled to hit the roads in India in 2011, but was delayed due to differences between the partners on pricing and design.
While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.
In 2010, Renault-Nissan announced the signing of a memorandum of understanding with Bajaj Auto to take forward their ULC car project.
The company, which had in 2008 showcased a concept small car but decided not to go ahead with the project, will launch the new product named RE60 later this year.
"Certainly, this is a product, the core customer for which are those who use a three wheeler," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here.
He said the RE60, powered by a 200 cc rear mounted petrol engine could also be sold in overseas markets where BAL's three wheelers are exported.
Bajaj said the company had spent nearly four years in developing the product that has a top speed of 70 kmph with a highest mileage of 35kmpl.
"This vehicle has been designed for intra-city passenger transport keeping in mind intra-city duty cycles and safety requirements," he added.
Commenting on the potential of the vehicle, he said the company expects a big growth opportunity by targeting the three wheeler segment.
The RE60 will be manufacturered in Bajaj's plant in Aurangabad and resembles an over-sized hatchback with an elevated roof.
Bajaj, however, did not share sales targets for the new product but said opportunities are not only in the domestic market but overseas as well.
"We make about 5,20,000 three-wheelers a year of which only 2,00,000 are sold in India and rest exported. So we see markets like Sri Lanka, which could be the first export market has huge potential for RE60," he said.
Asked about the association with Renault-Nissan alliance, Bajaj said: "They have not seen the product yet and will be seeing it at the Auto-Expo. Once they see it, we will decide the way forward."
As per an agreement with the Renault-Nissan alliance, BAL was supposed to develop and manufacture the vehicle and sold under the badge of the alliance.
In January, 2008 BAL had unveiled its concept passenger car with an expected price of USD 3000. It had partnered Renault-Nissan for the ultra low cost (ULC) car project.
The ULC was first scheduled to hit the roads in India in 2011, but was delayed due to differences between the partners on pricing and design.
While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.
In 2010, Renault-Nissan announced the signing of a memorandum of understanding with Bajaj Auto to take forward their ULC car project.
Crystal Group plans to branch out in Africa, Gulf
Hyderabad: New Delhi-based agro-chemical company Crystal Group, which acquired Rohini Seeds last week and raised private equity of Rs 150 crore, is planning to expand its operations to Africa and the Gulf.
The company, with a turnover of Rs 800 crore, is in the process of establishing bases in Uganda, Tanzania, Ghana and Nigeria.
“We will first go there with our flagship agro chemicals. After achieving sustainable figures, we will start seed business there too,” Mr Ankur Aggarwal, Managing Director of Crystal Group, toldBusiness Line.
“At present, exports contribute Rs 5 crore to the turnover. We would like this to grow by expanding our operations in Africa and the Gulf region,” he said.
funding
The company raised Rs 150 crore from the PE firm Everstone Capital in December. “We have the flexibility to deploy the funds for working capital needs, investments or acquisitions,” he said.
For the acquisition of the Hyderabad-based seed firm, it pooled in resources internally.
He refused to divulge cost of acquisition.
Asserting that there are no plans to raise more funds, Mr Aggarwal said the company is not looking to go in for a public issue.
“But it certainly is on our agenda. We will go for it in a 4-5 year timeframe or even before,” he said.
Consolidation
He said that the Rs 8,000-crore Indian seed industry is poised for growth.
It is expected to grow to Rs 13,030 crore in the next five years.
“There is huge scope for consolidation in the Indian seed industry. We will see more acquisitions in the next five years,” he said.
The company, with a turnover of Rs 800 crore, is in the process of establishing bases in Uganda, Tanzania, Ghana and Nigeria.
“We will first go there with our flagship agro chemicals. After achieving sustainable figures, we will start seed business there too,” Mr Ankur Aggarwal, Managing Director of Crystal Group, toldBusiness Line.
“At present, exports contribute Rs 5 crore to the turnover. We would like this to grow by expanding our operations in Africa and the Gulf region,” he said.
funding
The company raised Rs 150 crore from the PE firm Everstone Capital in December. “We have the flexibility to deploy the funds for working capital needs, investments or acquisitions,” he said.
For the acquisition of the Hyderabad-based seed firm, it pooled in resources internally.
He refused to divulge cost of acquisition.
Asserting that there are no plans to raise more funds, Mr Aggarwal said the company is not looking to go in for a public issue.
“But it certainly is on our agenda. We will go for it in a 4-5 year timeframe or even before,” he said.
Consolidation
He said that the Rs 8,000-crore Indian seed industry is poised for growth.
It is expected to grow to Rs 13,030 crore in the next five years.
“There is huge scope for consolidation in the Indian seed industry. We will see more acquisitions in the next five years,” he said.
JP Morgan invests Rs 100-cr in Narain Karthikeyan's green power company
Chennai: JP Morgan Asset Management has recently invested Rs 100 crore in Leap Green Energy Pvt Ltd, a company promoted by India's ace motor racer Narain Karthikeyan's family.
Leap Green owns installed capacity of 100 MW of wind assets, which is to be doubled in the current year.
According to Venture Intelligence PE Deal database, JP Morgan first invested Rs 107 crore. The investment was made into both equity and convertible debt instruments, which, when converted would give JP Morgan a majority stake. Therefore, JP Morgan has invested over Rs 200 crore in Leap Green, which describes itself as a green Independent Power Producer.
Leap Green's Web site says that the company its “portfolio includes wind, solar and hydel projects” which are at various stages of completion.
JP Morgan's investment in Leap Green underscores the interest that private equity funds are showing in renewable energy sector. There have been quite a few deals in the last six months, the biggest of them being Rs 1,000 crore in ReNew Wind Power, founded by Mr Sumanth Sinha, a former executive of Suzlon.
IDFC-incubated Green Infra, which has operating assets of 164 MW, received Rs 90 crore from IDFC PE. Bharat Light & Power, founded by Mr Tejpreet Chopra, a former President & CEO of GE India, also raised an undisclosed sum from DJF Ventures.
Leap Green owns installed capacity of 100 MW of wind assets, which is to be doubled in the current year.
According to Venture Intelligence PE Deal database, JP Morgan first invested Rs 107 crore. The investment was made into both equity and convertible debt instruments, which, when converted would give JP Morgan a majority stake. Therefore, JP Morgan has invested over Rs 200 crore in Leap Green, which describes itself as a green Independent Power Producer.
Leap Green's Web site says that the company its “portfolio includes wind, solar and hydel projects” which are at various stages of completion.
JP Morgan's investment in Leap Green underscores the interest that private equity funds are showing in renewable energy sector. There have been quite a few deals in the last six months, the biggest of them being Rs 1,000 crore in ReNew Wind Power, founded by Mr Sumanth Sinha, a former executive of Suzlon.
IDFC-incubated Green Infra, which has operating assets of 164 MW, received Rs 90 crore from IDFC PE. Bharat Light & Power, founded by Mr Tejpreet Chopra, a former President & CEO of GE India, also raised an undisclosed sum from DJF Ventures.
Manufacturing rises to 6 month high in December
New Delhi: Manufacturing activity climbed to a six-month high in December as new orders rose, reinforcing signs of industrial revival.
The HSBC Markit India Manufacturing Purchasing Managers' Index rose to 54.2 from 51.0 in November, the highest level since June and the sharpest monthly rise since April 2009, according to data released on Monday. A reading below 50 indicates contraction. It was 52 in October and 50.4 in September.
The rebound in manufacturing follows core sector numbers last week that hinted at a pick-up in industrial growth. The index for eight core sector industries, which have a combined weight of 38% in the index of industrial production ( IIP), expanded 6.5% in November.
"Activity in the manufacturing sector rebounded in December, led by higher demand from both domestic and foreign clients, suggesting that the momentum in the sector is not quite as weak as official and more dated IP (industrial production) data would suggest," said Leif Eskesen, economist at HSBC.
A 5.1% contraction in industrial growth in October had triggered a slew of downgrades in GDP growth estimates, with some even forecasting below-7% growth.
The positive PMI data aided the benchmark stock index in its 0.4% rise but failed to enthuse independent economists.
"The overall manufacturing picture looks gloomy and one can't expect any major improvements in the coming three months," Institute of Economic Growth professor Pradeep Agrawal said, adding that only after state elections can one expect recovery-boosting policy reforms.
Biswajit Dhar, director-general of RIS, a think-tank, said, "It is definitely good news as far as signals to market sentiments are concerned, so one can't dismiss it, but don't expect much effect on overall growth (GDP) performance."
The PMI is calculated using data from a questionnaire-based survey of purchasing executives in over 500 manufacturing companies.
The survey is not always an accurate gauge of manufacturing because of the presence of a large unorganised sector. Greater input purchases by companies would suggest a rise in production.
The managers surveyed said higher purchases were primarily due to rise in new orders, both domestic and international. The new orders index rose to 57.9 from 52.8 in November, biggest jump in two years.
The survey showed rising input costs, which the companies were able to pass on because of the still robust demand.
"The solid demand from clients allowed manufacturing companies to increase output prices at an accelerated pace to pass on rising costs... All in all, these numbers suggest it's premature for the RBI to replace inflation with growth as the main concern," Eskesen said.
The Reserve Bank of India (RBI) has indicated it will cut policy rates if inflation moderates. The central bank has lifted repo rate 13 times since March 2010 by 3.75 percentage points to 8.5%.
The steep climb in interest rates has hit heavily leveraged companies hard and dampened demand in rate sensitive sectors such as real estate and automobiles.
The HSBC Markit India Manufacturing Purchasing Managers' Index rose to 54.2 from 51.0 in November, the highest level since June and the sharpest monthly rise since April 2009, according to data released on Monday. A reading below 50 indicates contraction. It was 52 in October and 50.4 in September.
The rebound in manufacturing follows core sector numbers last week that hinted at a pick-up in industrial growth. The index for eight core sector industries, which have a combined weight of 38% in the index of industrial production ( IIP), expanded 6.5% in November.
"Activity in the manufacturing sector rebounded in December, led by higher demand from both domestic and foreign clients, suggesting that the momentum in the sector is not quite as weak as official and more dated IP (industrial production) data would suggest," said Leif Eskesen, economist at HSBC.
A 5.1% contraction in industrial growth in October had triggered a slew of downgrades in GDP growth estimates, with some even forecasting below-7% growth.
The positive PMI data aided the benchmark stock index in its 0.4% rise but failed to enthuse independent economists.
"The overall manufacturing picture looks gloomy and one can't expect any major improvements in the coming three months," Institute of Economic Growth professor Pradeep Agrawal said, adding that only after state elections can one expect recovery-boosting policy reforms.
Biswajit Dhar, director-general of RIS, a think-tank, said, "It is definitely good news as far as signals to market sentiments are concerned, so one can't dismiss it, but don't expect much effect on overall growth (GDP) performance."
The PMI is calculated using data from a questionnaire-based survey of purchasing executives in over 500 manufacturing companies.
The survey is not always an accurate gauge of manufacturing because of the presence of a large unorganised sector. Greater input purchases by companies would suggest a rise in production.
The managers surveyed said higher purchases were primarily due to rise in new orders, both domestic and international. The new orders index rose to 57.9 from 52.8 in November, biggest jump in two years.
The survey showed rising input costs, which the companies were able to pass on because of the still robust demand.
"The solid demand from clients allowed manufacturing companies to increase output prices at an accelerated pace to pass on rising costs... All in all, these numbers suggest it's premature for the RBI to replace inflation with growth as the main concern," Eskesen said.
The Reserve Bank of India (RBI) has indicated it will cut policy rates if inflation moderates. The central bank has lifted repo rate 13 times since March 2010 by 3.75 percentage points to 8.5%.
The steep climb in interest rates has hit heavily leveraged companies hard and dampened demand in rate sensitive sectors such as real estate and automobiles.
Volvo to make India global hub of its Asia range
New Delhi: Expects revenues for India subsidiary to shoot up to $1 bn from the present $200 mn.
India is set to emerge as the global development and manufacturing hub for Swedish bus maker Volvo Bus Corporation’s Asia range over the next four years.
The company, which has production facilities in 20 countries, has global manufacturing bases in Poland, Mexico and China. While the facility in Poland supplies premium buses to Europe, the centres in Mexico and China roll out premium products for countries in the Americas and southeast Asia respectively.
“India will be the fourth global hub for Volvo. The Asia range of buses will be designed, developed, manufactured and exported exclusively from India to the rest of the world. The new 9100 model is the first in this range of products,” said Akash Passey, Managing Director and Chief Executive Officer, Volvo Buses (South Asia). The Volvo 9100 coach is a medium haulage bus designed to operate over 300-400 km. The Indian unit expects at least 40-50 per cent of overall sales to come in from the Asia product range over the next two years.
Highlighting the growing importance of India in Volvo’s global operations, Hakan Karlsson, president, Volvo Bus Corporation, said, “We have a clearly defined role for India in the future. With a planned investment of at least Rs 400 crore, India would emerge as the second largest market for us globally over the next four years. It would be the manufacturing hub for selected models and have a research and product team focused on developing specific products for Asian markets, which would then find their way to the rest of the world.”
The company, looking to sell 25,000-30,000 units worldwide by 2015, expects nearly half the volumes to come from the emerging markets of India and China. The Indian unit is projected to increase sales fivefold to 5,000 units per annum to become the second largest market for Volvo Buses worldwide over four years. India is now the sixth largest market for the company, behind China, South America and Europe.
Revenues for the India subsidiary, too, are expected to shoot up to $1 billion from the present $200 million. As much as 25 per cent of overall volumes would be registered as exports from India to countries in Asia-Pacific, West Asia and South America.
To build scale, the company is expanding its product range to offer 10 variants across both inter-city and city segments in 2012. Volvo Buses India has the capacity to manufacture 1,200-1,500 units per annum at its facility in Hoskote, Bangalore. The company is considering options to expand capacity at the existing facility and to set up a second manufacturing unit in the country.
While a final call on the site for the second unit has not been taken yet, Karlsson says investments over the Rs 400 crore (already planned) will be made for the new plant. Volvo Buses India has a market share of 70 per cent in the luxury inter-city coach segment and over 50 per cent share in the low-floor air-conditioned city bus segment.
India is set to emerge as the global development and manufacturing hub for Swedish bus maker Volvo Bus Corporation’s Asia range over the next four years.
The company, which has production facilities in 20 countries, has global manufacturing bases in Poland, Mexico and China. While the facility in Poland supplies premium buses to Europe, the centres in Mexico and China roll out premium products for countries in the Americas and southeast Asia respectively.
“India will be the fourth global hub for Volvo. The Asia range of buses will be designed, developed, manufactured and exported exclusively from India to the rest of the world. The new 9100 model is the first in this range of products,” said Akash Passey, Managing Director and Chief Executive Officer, Volvo Buses (South Asia). The Volvo 9100 coach is a medium haulage bus designed to operate over 300-400 km. The Indian unit expects at least 40-50 per cent of overall sales to come in from the Asia product range over the next two years.
Highlighting the growing importance of India in Volvo’s global operations, Hakan Karlsson, president, Volvo Bus Corporation, said, “We have a clearly defined role for India in the future. With a planned investment of at least Rs 400 crore, India would emerge as the second largest market for us globally over the next four years. It would be the manufacturing hub for selected models and have a research and product team focused on developing specific products for Asian markets, which would then find their way to the rest of the world.”
The company, looking to sell 25,000-30,000 units worldwide by 2015, expects nearly half the volumes to come from the emerging markets of India and China. The Indian unit is projected to increase sales fivefold to 5,000 units per annum to become the second largest market for Volvo Buses worldwide over four years. India is now the sixth largest market for the company, behind China, South America and Europe.
Revenues for the India subsidiary, too, are expected to shoot up to $1 billion from the present $200 million. As much as 25 per cent of overall volumes would be registered as exports from India to countries in Asia-Pacific, West Asia and South America.
To build scale, the company is expanding its product range to offer 10 variants across both inter-city and city segments in 2012. Volvo Buses India has the capacity to manufacture 1,200-1,500 units per annum at its facility in Hoskote, Bangalore. The company is considering options to expand capacity at the existing facility and to set up a second manufacturing unit in the country.
While a final call on the site for the second unit has not been taken yet, Karlsson says investments over the Rs 400 crore (already planned) will be made for the new plant. Volvo Buses India has a market share of 70 per cent in the luxury inter-city coach segment and over 50 per cent share in the low-floor air-conditioned city bus segment.
Mu Sigma raises $108 mn from General Atlantic
Bangalore: Mu Sigma, an analytics and decision support service provider, on Wednesday closed a $108-million investment round led by General Atlantic. This is said to be the biggest private-equity investment in the emerging market for analytics services.
Sequoia Capital, which invested $25 million in Mu Sigma in April, also participated in the latest round, the company said in a statement.
Founded in April 2004, Mu Sigma's main delivery centre is in Bangalore. The company specialises in providing analytics to companies across multiple businesses like marketing, supply chain and risk analytics. It boasts of over 50 Fortune 500 clients, including Microsoft and Dell.
“We are excited to partner with the clear market leader in the emerging field of analytics and decision sciences for large global enterprises. The Big Data phenomenon is creating huge challenges for corporations as they look to harness information to accelerate and improve decision making, and Mu Sigma is an excellent antidote,” said Bill Ford, CEO, General Aatlantic in a statement. Ford will join Mu Sigma board as a part of this funding.
According to Mu Sigma, a part of the funding would be used to purchase shares held by the existing shareholders, all of who would continue to have stakes in the company. “The company is profitable and will use the new money for growth by acquiring new clients and developing more services. With General Atlantic and Sequoia Capital as investors, we now have a world-class private-equity firm and venture capital firm,” said Mu Sigma’s founder & chief executive officer Dhiraj Rajaram, a former consultant at Booz Allen Hamilton.
The company claims its revenues from 2008 to 2010 grew by close to nine times (886 per cent), which earned itself a place in Inc 500 list of America’s fastest-growing private companies. The company employs 1,500 people across its facilities in Bangalore and the US.
Shailendra Singh, managing director, Sequoia Capital, said, “Mu Sigma has world-class analytics capabilities, a unique operating model that continues to create tremendous client impact for dozens of Fortune 500 companies. We are delighted to back the company in its mission.”
General Atlantic has been an active investor in business services companies globally with portfolio such as TASC, QTS, TriNet, Genpact and ServiceSource.
In addition to business services, GA focuses on providing growth equity to businesses in the sectors such as healthcare, energy and resources, financial services, internet and technology.
Sequoia Capital, which invested $25 million in Mu Sigma in April, also participated in the latest round, the company said in a statement.
Founded in April 2004, Mu Sigma's main delivery centre is in Bangalore. The company specialises in providing analytics to companies across multiple businesses like marketing, supply chain and risk analytics. It boasts of over 50 Fortune 500 clients, including Microsoft and Dell.
“We are excited to partner with the clear market leader in the emerging field of analytics and decision sciences for large global enterprises. The Big Data phenomenon is creating huge challenges for corporations as they look to harness information to accelerate and improve decision making, and Mu Sigma is an excellent antidote,” said Bill Ford, CEO, General Aatlantic in a statement. Ford will join Mu Sigma board as a part of this funding.
According to Mu Sigma, a part of the funding would be used to purchase shares held by the existing shareholders, all of who would continue to have stakes in the company. “The company is profitable and will use the new money for growth by acquiring new clients and developing more services. With General Atlantic and Sequoia Capital as investors, we now have a world-class private-equity firm and venture capital firm,” said Mu Sigma’s founder & chief executive officer Dhiraj Rajaram, a former consultant at Booz Allen Hamilton.
The company claims its revenues from 2008 to 2010 grew by close to nine times (886 per cent), which earned itself a place in Inc 500 list of America’s fastest-growing private companies. The company employs 1,500 people across its facilities in Bangalore and the US.
Shailendra Singh, managing director, Sequoia Capital, said, “Mu Sigma has world-class analytics capabilities, a unique operating model that continues to create tremendous client impact for dozens of Fortune 500 companies. We are delighted to back the company in its mission.”
General Atlantic has been an active investor in business services companies globally with portfolio such as TASC, QTS, TriNet, Genpact and ServiceSource.
In addition to business services, GA focuses on providing growth equity to businesses in the sectors such as healthcare, energy and resources, financial services, internet and technology.
Real estate houses most PE investments in 2011, attracts $1,700 million
Ahmedabad: Real estate emerged as the popular parking place for private equity funds who invested $1,700 million in the sector during 2011. Power sector that topped the PE charts during the first six months of the year finished third with $892-million investments behind automotive sector that could attract $1006 million private equity funding.
Overall PE investments during the year rose to $7.7 billion through 347 deals, up from $6.2 billion and 253 deals in 2010. However, the country's total investment in the private sector was a tad lower than last year.
In 2011, PE players signed 29 deals in real estate at a time when the sector found it tough to receive bank funding, a report by consulting firm Grant Thornton says. "Banks have become too cautious to lend to the sector and PE players found a new opportunity. They expect high returns within a year or so," says Raja Lahiri, partner, transaction advisory services, Grant Thornton India. Of the 100 transactions handled by the firm, more than half are into real estate.
Private equity in real estate projects will fetch considerable returns by next year-end or early 2013, says Vikram Hosangady, partner, KPMG. "Limited partners (who write cheque for funds) expect 15-25% returns from real estate deals. Foreign investors are optimistic about India. All they want is prompt action and friendly policies," he says.
Automotive, power & energy, banking & financial services and IT & ITes received PE investments of $1006 mn, $892 mn, $816 mn and $783 mn respectively. The sectors were ahead of telecom, metals & mining, pharma & healthcare, hospitality who saw a declining interest from private equity firms.
Bain Capital and Govt of Singapore clinched the top deal of the year of $849 million when they together took 30% stake in Hero Investment.
Macquarie SBI Infrastructure Investments, Blackstone and a consortium of Standard Chartered PE (Mauritius), JM Financial and NYLIM Jacob Ballas have invested $200 mn each in separate deals. "Though the outbound deals have seen lesser activity due to weak global conditions, PE firms continue to attract better deals," adds Lahiri.
The year saw $50.9 billion invested through various forms of private investments like mergers & acquisitions, PE deals and qualified institutional placement (QIP). The invested amount in 2011 was however, lower than $62.2 billion investments in 2010 and so were the number of deals that fell to 961 deals from 971 deals last year.
Overall PE investments during the year rose to $7.7 billion through 347 deals, up from $6.2 billion and 253 deals in 2010. However, the country's total investment in the private sector was a tad lower than last year.
In 2011, PE players signed 29 deals in real estate at a time when the sector found it tough to receive bank funding, a report by consulting firm Grant Thornton says. "Banks have become too cautious to lend to the sector and PE players found a new opportunity. They expect high returns within a year or so," says Raja Lahiri, partner, transaction advisory services, Grant Thornton India. Of the 100 transactions handled by the firm, more than half are into real estate.
Private equity in real estate projects will fetch considerable returns by next year-end or early 2013, says Vikram Hosangady, partner, KPMG. "Limited partners (who write cheque for funds) expect 15-25% returns from real estate deals. Foreign investors are optimistic about India. All they want is prompt action and friendly policies," he says.
Automotive, power & energy, banking & financial services and IT & ITes received PE investments of $1006 mn, $892 mn, $816 mn and $783 mn respectively. The sectors were ahead of telecom, metals & mining, pharma & healthcare, hospitality who saw a declining interest from private equity firms.
Bain Capital and Govt of Singapore clinched the top deal of the year of $849 million when they together took 30% stake in Hero Investment.
Macquarie SBI Infrastructure Investments, Blackstone and a consortium of Standard Chartered PE (Mauritius), JM Financial and NYLIM Jacob Ballas have invested $200 mn each in separate deals. "Though the outbound deals have seen lesser activity due to weak global conditions, PE firms continue to attract better deals," adds Lahiri.
The year saw $50.9 billion invested through various forms of private investments like mergers & acquisitions, PE deals and qualified institutional placement (QIP). The invested amount in 2011 was however, lower than $62.2 billion investments in 2010 and so were the number of deals that fell to 961 deals from 971 deals last year.
Subscribe to:
Posts (Atom)