New Delhi: The world's largest two-wheeler maker by volume, Hero MotoCorp, will invest 2,575 crore to set up two new manufacturing plants in Gujarat and Rajastan and a new R&D centre by 2013-14.
Hero, which saw an unprecedented growth in volumes, crossed the six-million units mark in the last fiscal. It will raise its installed capacity to nine-million units by 2013-14. It will invest in two plants in Rajasthan and Gujarat.
The first would come up at Neemrana by first quarter of FY 2014 with 400 crore investment and will have an initial installed capacity of 7.5 lakh units per annum. Its proposed Gujarat plant will see an investment of 1,100 crore and have 1.2 million units capacity by the second quarter of 2013-14.
Hero MotoCorp MD and CEO Pawan Munjal told reporters in Delhi on Monday, "Once the fourth and fifth plants gets on stream, our total manufacturing capacity in India will reach beyond nine-million units from the current seven million coming from three plants in India. We are gradually moving towards South and would aim to spread our manufacturing operations across the country."
The company also announced plans to set up an integrated research and development (R&D) centre spread across 250-acre near Jaipur in Rajasthan entailing an investment of 400 crore.
The new facility would enable Hero to independently design and develop bikes, scooters and other two-wheelers after its snapped its 27-year-old JV ties with its Japanese technology partner Honda in December 2010. The Indian promoter of the firm, the BM Munjal family, had bought the entire 26% of Honda in Hero Honda for 3,841.83 crore.
"We plan to set up new centre where we will have an in-house collaborative product designing and development capability. We will also have a 2.1 km race track for test high displacement superbike as we go global with our new range of products," Munjal added.
Besides, Hero would also invest 500 crore in capacity expansion of its existing plants at Haridwar, Daruhera and Gurgaon. All the investment will be funded through cash reserves of Rs 4,000 crore of HMCL, Its CFO Ravi Sud said. The company will be launching a mass-market bike, Ignitor in next few weeks.
Success in my Habit
Tuesday, June 5, 2012
OPG Power to spend Rs 3k crore in Tamil Nadu, Gujarat
Chennai/ Mumbai: London Stock Exchange-listed OPG Power Ventures is planning to increase its power capacity to 750 megawatt (Mw) from the current 112 Mw. The company will set up three new power plants — an 80-Mw and a 160-Mw power plants in Chennai and a 300-Mw power plant in Kutch, Gujarat.
The AIM-listed company will invest Rs 3,000 crore, which is funded 30 per cent from equity and the remaining from debt. The company has already raised debt of around Rs 2,100 crore from a consortium of nine banks.
This investment comes at a time when many power sector companies are freezing their plans for incremental investments. GMR, Tata Power, GVK and Adani Power said they would go slow on newer investments. Lack of domestic coal and higher price of international coal, besides slower pace of land acquisition and approvals, have hindered their expansion plans.
However, OPG is not facing these issues. The company has decided to use imported coal to operate its power plants. “Our power plants are designed to use domestic coal as well as high-moisture Indonesian coal,” said OPG Power Ventures CEO Arvind Gupta.
Gupta said the cost would also be lower, as high-moisture coal is available at competitive prices compared to high-grade coal. The company’s coal cost comes up to as much as Rs 3 per unit. The company has all its land and approvals in place. And, two of the three power plants being set up are brownfield projects.
The company’s new power projects are all coal-based and will start generating power by 2014. These are being set up near ports, which will give the company advantage and flexibility to use both domestic and imported coal.
OPG follows a group captive model where power is sold to industrial and commercial groups. It has already signed power sale agreements with around 30 units. “These are from various sectors such as textiles, steel and IT companies,” said Gupta.
Currently, OPG has existing operating capacity of 112 Mw, generated by its three power plants. Located in Tamil Nadu and Gujarat, these plants are one coal-fired, one gas-fired and the third a waste heat recovery one. This capacity is being expanded by an additional unit of 77 Mw, which will start generating power shortly.
OPG sources its equipment from state-owned Bharat Heavy Electricals Ltd and Ansaldo Boilers.
The AIM-listed company will invest Rs 3,000 crore, which is funded 30 per cent from equity and the remaining from debt. The company has already raised debt of around Rs 2,100 crore from a consortium of nine banks.
This investment comes at a time when many power sector companies are freezing their plans for incremental investments. GMR, Tata Power, GVK and Adani Power said they would go slow on newer investments. Lack of domestic coal and higher price of international coal, besides slower pace of land acquisition and approvals, have hindered their expansion plans.
However, OPG is not facing these issues. The company has decided to use imported coal to operate its power plants. “Our power plants are designed to use domestic coal as well as high-moisture Indonesian coal,” said OPG Power Ventures CEO Arvind Gupta.
Gupta said the cost would also be lower, as high-moisture coal is available at competitive prices compared to high-grade coal. The company’s coal cost comes up to as much as Rs 3 per unit. The company has all its land and approvals in place. And, two of the three power plants being set up are brownfield projects.
The company’s new power projects are all coal-based and will start generating power by 2014. These are being set up near ports, which will give the company advantage and flexibility to use both domestic and imported coal.
OPG follows a group captive model where power is sold to industrial and commercial groups. It has already signed power sale agreements with around 30 units. “These are from various sectors such as textiles, steel and IT companies,” said Gupta.
Currently, OPG has existing operating capacity of 112 Mw, generated by its three power plants. Located in Tamil Nadu and Gujarat, these plants are one coal-fired, one gas-fired and the third a waste heat recovery one. This capacity is being expanded by an additional unit of 77 Mw, which will start generating power shortly.
OPG sources its equipment from state-owned Bharat Heavy Electricals Ltd and Ansaldo Boilers.
Auto spares maker Valeo to set up 2 plants
Chennai: French auto components maker Valeo is setting up two new plants in the country — at Chennai and Sanand.
The company has acquired land in Sanand, Gujarat, and construction will start in a month or so, said Mr P.R. Dhaamodharan, Group President and Managing Director, Valeo India. The plant is expected to be operational by mid-2013.
With big names such as Ford, Tata Motors and Peugeot driving into the region, Sanand is rapidly transforming into an auto hub. Valeo hopes to cater to clients in and around the region through its Sanand plant. This is part of the company's efforts to ramp up local manufacturing to “stay close to customers.”
Products manufactured
Of the 16 product groups globally, only a few categories are manufactured in India. The company, at present, manufactures clutches, lighting systems and switches at its plants in Chennai (Vallam and Madhavaram). Its two Pune plants make security systems, starters and alternators. Valeo also has a friction material factory at Maraimalainagar, Chennai.
The Sanand plant, spread across 15 acres, will manufacture a range of thermal systems and other new products from the Valeo global portfolio that will come into India. By 2013, Valeo is looking to locally manufacture compressors, engine cooling modules, wipers, air management systems and advanced switches.
Valeo is also setting up a new plant in Chennai for clutches, in partnership with the Amalgamations Group. It has acquired land from state industries body, SIPCOT, at Oragadam.
At present, clutches are manufactured at Valeo's plants in Madhavaram and Vallam (Chennai). Valeo plans to move clutch manufacturing to its new plant in Oragadam next year. While Vallam will continue to make switches and lighting systems, operations at the Madhavaram plant, which is on rental lease, will be discontinued.
Valeo India employs around 3,000 people across its plants in Chennai and Pune. It primarily caters to the local markets and exports are miniscule.
Global sales
Valeo's global sales are €10.9 billion.
The company has acquired land in Sanand, Gujarat, and construction will start in a month or so, said Mr P.R. Dhaamodharan, Group President and Managing Director, Valeo India. The plant is expected to be operational by mid-2013.
With big names such as Ford, Tata Motors and Peugeot driving into the region, Sanand is rapidly transforming into an auto hub. Valeo hopes to cater to clients in and around the region through its Sanand plant. This is part of the company's efforts to ramp up local manufacturing to “stay close to customers.”
Products manufactured
Of the 16 product groups globally, only a few categories are manufactured in India. The company, at present, manufactures clutches, lighting systems and switches at its plants in Chennai (Vallam and Madhavaram). Its two Pune plants make security systems, starters and alternators. Valeo also has a friction material factory at Maraimalainagar, Chennai.
The Sanand plant, spread across 15 acres, will manufacture a range of thermal systems and other new products from the Valeo global portfolio that will come into India. By 2013, Valeo is looking to locally manufacture compressors, engine cooling modules, wipers, air management systems and advanced switches.
Valeo is also setting up a new plant in Chennai for clutches, in partnership with the Amalgamations Group. It has acquired land from state industries body, SIPCOT, at Oragadam.
At present, clutches are manufactured at Valeo's plants in Madhavaram and Vallam (Chennai). Valeo plans to move clutch manufacturing to its new plant in Oragadam next year. While Vallam will continue to make switches and lighting systems, operations at the Madhavaram plant, which is on rental lease, will be discontinued.
Valeo India employs around 3,000 people across its plants in Chennai and Pune. It primarily caters to the local markets and exports are miniscule.
Global sales
Valeo's global sales are €10.9 billion.
MSat launches cloud-based solution in Malaysia
Bangalore: Mahindra Satyam has launched its Oracle Campus Solution on cloud for higher education in Malaysia.
Mr Ram Ramachandran, Vice-President and Business Head, Mahindra Satyam, ASEAN, said: “Cloud-based services are a prime focus for Mahindra Satyam. This service will be delivered from our global delivery centre in Cyberjaya, Malaysia.’’
A release from the company said that under this offering, Mahindra Satyam will provide end-to-end solutions, including hardware, Oracle application software, and implementation. The company will also provide support on a virtual private cloud model.
Mr Ram Ramachandran, Vice-President and Business Head, Mahindra Satyam, ASEAN, said: “Cloud-based services are a prime focus for Mahindra Satyam. This service will be delivered from our global delivery centre in Cyberjaya, Malaysia.’’
A release from the company said that under this offering, Mahindra Satyam will provide end-to-end solutions, including hardware, Oracle application software, and implementation. The company will also provide support on a virtual private cloud model.
Asian destinations charm Indian travellers
Mumbai: Asian destinations dominate the top 10 list of favourite overseas destinations for Indian travellers, according to the latest Hotel Price Index (HPI) report by Hotels.com.
Singapore retains its place as the most popular overseas destinations for Indian travellers, ahead of Bangkok which is placed second. Other Asian destinations include Kuala Lumpur, Pattaya and Phuket.
London is the fifth most favourite destination for Indians travelling overseas. Interestingly, it is the only European destination that features on the list. On the other hand, two American destinations feature on the list — New York and Las Vegas. Dubai, an old favourite with Indians, enjoys the third spot. The HPI report reveals that metro cities dominate the top Indian destinations list for domestic as well as overseas travellers. According to the report, New Delhi is the most preferred destination for both, domestic and international travellers. Other metros which feature in the top 10 are Mumbai, Bangalore, Chennai and Hyderabad.
Bangalore, in the third place on the list, is more popular with international travellers whereas on the Indian travellers' list it is placed 6 {+t} {+h}. Chennai is the fourth most favourite city amongst overseas travellers, whereas amongst Indian travellers it occupies the 8th position. Apart from the metros, Goa and Jaipur also feature in the top 10 list.
Singapore retains its place as the most popular overseas destinations for Indian travellers, ahead of Bangkok which is placed second. Other Asian destinations include Kuala Lumpur, Pattaya and Phuket.
London is the fifth most favourite destination for Indians travelling overseas. Interestingly, it is the only European destination that features on the list. On the other hand, two American destinations feature on the list — New York and Las Vegas. Dubai, an old favourite with Indians, enjoys the third spot. The HPI report reveals that metro cities dominate the top Indian destinations list for domestic as well as overseas travellers. According to the report, New Delhi is the most preferred destination for both, domestic and international travellers. Other metros which feature in the top 10 are Mumbai, Bangalore, Chennai and Hyderabad.
Bangalore, in the third place on the list, is more popular with international travellers whereas on the Indian travellers' list it is placed 6 {+t} {+h}. Chennai is the fourth most favourite city amongst overseas travellers, whereas amongst Indian travellers it occupies the 8th position. Apart from the metros, Goa and Jaipur also feature in the top 10 list.
Monday, June 4, 2012
Philips to develop more low-cost healthcare products for villagers
Bangalore: Consumer electronics major Philips will focus on developing healthcare products for rural India — a shift away from its exports–led strategy of the previous years.
Till about three years back, all products developed by the company were meant for exports and this has come down to about 85 per cent this year. Going forward, the quantum of products developed for the Indian markets will go up “exponentially” and the team “will churn out more products for rural India”, Mr Srinivas Prasad, Head of Healthcare at Philips Innovation Centre told Business Line.
The company's healthcare division is now developing products and low-cost solutions used in cardiology, cervical cancer and mother and child-care segments for rural markets. Philips is addressing a $5-billion market for healthcare products in India.
Affordable products
The company's 2,500 people-strong Philips Innovation Centre, handles healthcare, lighting and consumer lifestyle. Healthcare constitutes about half of its headcount. The team focuses on making India-focussed, cost-effective products. It also works on telemedicine and decentralised healthcare and making products portable.
The specialised R&D centre in Bangalore helps in ensuring affordability of products, said Mr A. Krishnakumar, President, Philips Healthcare India.
Philips recently launched its first product developed ‘in India for India'— the ClearVue range of ultrasound products. It partners with hospital chains to ideate new products relevant to India and also pilot the products.
Over the next few months, Philips will launch a range of products such as colposcopes (a device used to check for cervical cancer), thermo regulators, and cardiology informatics solutions for use in the local market.
The company will be inaugurating its greenfield manufacturing plant at Pune, which will manufacture the products. The company will also be opening a small R&D centre there to work on cardiology products and is also setting up a centre there to service its products.
Till about three years back, all products developed by the company were meant for exports and this has come down to about 85 per cent this year. Going forward, the quantum of products developed for the Indian markets will go up “exponentially” and the team “will churn out more products for rural India”, Mr Srinivas Prasad, Head of Healthcare at Philips Innovation Centre told Business Line.
The company's healthcare division is now developing products and low-cost solutions used in cardiology, cervical cancer and mother and child-care segments for rural markets. Philips is addressing a $5-billion market for healthcare products in India.
Affordable products
The company's 2,500 people-strong Philips Innovation Centre, handles healthcare, lighting and consumer lifestyle. Healthcare constitutes about half of its headcount. The team focuses on making India-focussed, cost-effective products. It also works on telemedicine and decentralised healthcare and making products portable.
The specialised R&D centre in Bangalore helps in ensuring affordability of products, said Mr A. Krishnakumar, President, Philips Healthcare India.
Philips recently launched its first product developed ‘in India for India'— the ClearVue range of ultrasound products. It partners with hospital chains to ideate new products relevant to India and also pilot the products.
Over the next few months, Philips will launch a range of products such as colposcopes (a device used to check for cervical cancer), thermo regulators, and cardiology informatics solutions for use in the local market.
The company will be inaugurating its greenfield manufacturing plant at Pune, which will manufacture the products. The company will also be opening a small R&D centre there to work on cardiology products and is also setting up a centre there to service its products.
Crisil buys UK analytics firm for Rs 250 crore to grow global research business
Mumbai: Rating agency Crisil has acquired a UK-based analytics firm Coalition in a Rs 250 crore deal which will expand the firms global business.
Coalition is in the niche business of providing high end analytics to leading investment banks of the world helping management do a performance analysis of various revenue pools. The company has around 130 employees in US, UK, Singapore and India and was earlier owned by institutional shareholders which included JP Morgan, UBS and Deutsche Bank.
"This is our sixth acquisition in 13 years and inorganic growth has always been an element of our strategy. Today over half of our revenues are coming from overseas" said Roopa Kudva, MD, Crisil. The company which began as a rating agency, today generated half its earnings from research and only 40% is from ratings while the rest is from advisory fees.
Coalition reported 2011 revenues of GBP 8 million. The all-cash transaction has a maximum payout of GBP 29 million (around Rs.250 crores) which is linked to the company's future revenues and profits. In other words, if the targets are not met, the sale consideration would come down.
Ms Kuduva said that Coalition's business fits in with Crisil's research activites and moves them up the value chain. Crisil, which has research centres in India Argentina, Poland and China, will look at expanding Coalition's business in other centres as well. "These analytics can be done in emerging markets as well and provide us with an opportunity to deepen our relationship with existing customers" said Kudva.
"We have worked very hard to find the right partner to take Coalition to the next level of growth, and we are delighted to become a part of CRISIL," said Trevor Foster-Black Chairman, founder and CEO of Coalition. "Crisil is a dynamic and rapidly-growing analytical company with tremendous credibility, a strong business profile and robust balance sheet. I see a very bright future for our business as a member of the Crisil group."
Coalition is in the niche business of providing high end analytics to leading investment banks of the world helping management do a performance analysis of various revenue pools. The company has around 130 employees in US, UK, Singapore and India and was earlier owned by institutional shareholders which included JP Morgan, UBS and Deutsche Bank.
"This is our sixth acquisition in 13 years and inorganic growth has always been an element of our strategy. Today over half of our revenues are coming from overseas" said Roopa Kudva, MD, Crisil. The company which began as a rating agency, today generated half its earnings from research and only 40% is from ratings while the rest is from advisory fees.
Coalition reported 2011 revenues of GBP 8 million. The all-cash transaction has a maximum payout of GBP 29 million (around Rs.250 crores) which is linked to the company's future revenues and profits. In other words, if the targets are not met, the sale consideration would come down.
Ms Kuduva said that Coalition's business fits in with Crisil's research activites and moves them up the value chain. Crisil, which has research centres in India Argentina, Poland and China, will look at expanding Coalition's business in other centres as well. "These analytics can be done in emerging markets as well and provide us with an opportunity to deepen our relationship with existing customers" said Kudva.
"We have worked very hard to find the right partner to take Coalition to the next level of growth, and we are delighted to become a part of CRISIL," said Trevor Foster-Black Chairman, founder and CEO of Coalition. "Crisil is a dynamic and rapidly-growing analytical company with tremendous credibility, a strong business profile and robust balance sheet. I see a very bright future for our business as a member of the Crisil group."
Colombo to host 'India Show' in August
Colombo: The Indian Government and Confederation of Indian Industry (CII) will organise ‘India Show' in Colombo in August. The show will coincide with the visit of the Union Minister of Commerce, Mr Anand Sharma, to Sri Lanka.
The “India Show” will promote Indian technology and services, provide a platform for Indian companies to showcase their strengths and capabilities, and provide opportunities to Sri Lankan business to develop linkages with prospective Indian partners.
The main features of “India Show” are: Three days of exhibition from August 3 to 5; business conference; one-to-one meetings; visit of business delegation; visit of high-level Ministerial delegation; cultural evening and gala dinner.
A food festival and Indian wine sampling will also be organised to coincide with the “India Show”. More than 100 Indian companies are expected to participate in the event.
The Indian High Commission here organised an India-Sri Lanka Business Forum here recently to discuss the possibilities of enhancing trade and economic relations between India and Sri Lanka and informing the participants about the “India Show” planned for August 2012.
Mr Ashok K. Kantha, High Commissioner of India, said the two-way trade grew by 65 per cent in 2011, to reach about $ 5 billion. Referring to the slow down in the economic growth of the two countries, the High Commissioner emphasised the need to work closely to keep up the momentum of growth in bilateral trade.
The “India Show” will promote Indian technology and services, provide a platform for Indian companies to showcase their strengths and capabilities, and provide opportunities to Sri Lankan business to develop linkages with prospective Indian partners.
The main features of “India Show” are: Three days of exhibition from August 3 to 5; business conference; one-to-one meetings; visit of business delegation; visit of high-level Ministerial delegation; cultural evening and gala dinner.
A food festival and Indian wine sampling will also be organised to coincide with the “India Show”. More than 100 Indian companies are expected to participate in the event.
The Indian High Commission here organised an India-Sri Lanka Business Forum here recently to discuss the possibilities of enhancing trade and economic relations between India and Sri Lanka and informing the participants about the “India Show” planned for August 2012.
Mr Ashok K. Kantha, High Commissioner of India, said the two-way trade grew by 65 per cent in 2011, to reach about $ 5 billion. Referring to the slow down in the economic growth of the two countries, the High Commissioner emphasised the need to work closely to keep up the momentum of growth in bilateral trade.
Pharma sector expected to grow at 15.3 per cent CAGR: Barclays report
New Delhi: The Indian pharmaceutical market is set to grow over medium-term. The compound annual growth rate (CAGR) over the past three years had been 12.4 per cent, but it is expected to grow at 15.3 per cent from 2011-12 to 2013-14, according to a Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals.
The growth is expected due to factors like new product launches, focus on improving the effectiveness of field force additions and favourable pricing environment, the report highlighted. The Indian market has been a favourable one for pricing with 2-4 per cent annual increase in prices.
Pricing of essential medicines in the Indian market is monitored and controlled by the National Pharmaceutical Pricing Authority (NPPA), through the Drug Price Control Order (DPCO). The current pricing mechanism is cost-based. About 25-30 per cent of the pharma market is currently controlled by the DPCO. Over the next 2-3 years, number of pharmaceutical companies will continue with product launches in India.
The growth is expected due to factors like new product launches, focus on improving the effectiveness of field force additions and favourable pricing environment, the report highlighted. The Indian market has been a favourable one for pricing with 2-4 per cent annual increase in prices.
Pricing of essential medicines in the Indian market is monitored and controlled by the National Pharmaceutical Pricing Authority (NPPA), through the Drug Price Control Order (DPCO). The current pricing mechanism is cost-based. About 25-30 per cent of the pharma market is currently controlled by the DPCO. Over the next 2-3 years, number of pharmaceutical companies will continue with product launches in India.
Board set under Anand Sharma to boost manufacturing sector
New Delhi: The government has set up a high-level board under commerce and industry minister Anand Sharma to boost manufacturing sectors after India's GDP growth plummeted to a nine-year low of 5.3% in the last quarter of 2011-12, largely because of a 0.3% contraction in manufacturing.
The annual growth for the 2011-12 was also a nine-year low of 6.5%. The 13-member Manufacturing Industry promotion Board ( MIPB) would periodically review the manufacturing sector, which contributes nearly 15% of the GDP, well below near 40% share in China.
The board would include secretaries of key government departments and ministries, such as economic affairs, revenue, labour, MSME, road transport and environment and also some industry representatives.
"High-level inter-ministerial nature of the board will enable it to resolve co-ordination issues among central ministries on the one hand and state governments and central ministries on the other," a commerce and industry ministry release said on Sunday. The government has formed three more panels - High Level Committee (HLC), Green Manufacturing Committee (GMC) and Board of Approval (BoA) - to implement the National Manufacturing Policy.
The policy aims to increase the share of the manufacturing sector in the GDP to 25%, from the current about 15%, in the next decade. It envisages mega National Investment and Manufacturing Zones and Delhi-Mumbai Industrial Corridor (DMIC).
The annual growth for the 2011-12 was also a nine-year low of 6.5%. The 13-member Manufacturing Industry promotion Board ( MIPB) would periodically review the manufacturing sector, which contributes nearly 15% of the GDP, well below near 40% share in China.
The board would include secretaries of key government departments and ministries, such as economic affairs, revenue, labour, MSME, road transport and environment and also some industry representatives.
"High-level inter-ministerial nature of the board will enable it to resolve co-ordination issues among central ministries on the one hand and state governments and central ministries on the other," a commerce and industry ministry release said on Sunday. The government has formed three more panels - High Level Committee (HLC), Green Manufacturing Committee (GMC) and Board of Approval (BoA) - to implement the National Manufacturing Policy.
The policy aims to increase the share of the manufacturing sector in the GDP to 25%, from the current about 15%, in the next decade. It envisages mega National Investment and Manufacturing Zones and Delhi-Mumbai Industrial Corridor (DMIC).
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