Air Works, Empire Aviation team up to service business jets

New Delhi: Owners of private business jets in India can soon look forward to a one-stop shop for meeting all their travel needs. This follows Air Works making a Rs 120 crore strategic investment in Dubai-based private aviation company Empire Aviation Group. The new company will offer end-to-end aircraft asset management services for private business jet owners.

The strategic investment is through a mix of internal accruals and structured debt finance of Rs 120 crore from KKR & Co, officials said.

“If there is a owner of a private business jet who does not want to have the headache of maintaining a staff for managing the aircraft we can help them not only operating their flights but also getting clearance for the operations,” officials said. The new company expects to open the first office in the next 30-45 days in Bangalore followed by Delhi and Mumbai. Initially staff will be brought from the UAE base, officials said.

Declining to give details of the companies that have already signed up with Empire Aviation, officials said, “In the United Arab Emirates we operate for some former prime ministers and wealthiest of the wealthy.”

On how much a business jet owner would have to pay for the services, officials said: “The management model will depend on the type of aircraft. You might have some one who flies 20 per cent of the time and offers the aircraft for charter services 80 per cent of the time. The amount such a customer will pay will be different from what another customer pays,” officials said.

Air Works may look to raise between $ 35-50 million capital but there is no talk to divest at the moment, officials said. While GTI has a stake holding of about 25 per cent, Punj Lloyd holds about 19 per cent stake in Air Works. The funds will be raised primarily to create an engine Maintenance, Repair and Overhaul facility, officials said.

PowerGrid plans to diversify into distribution abroad

New Delhi: Power transmission monopoly PowerGrid Corporation of India is planning to get into distribution business. The company that cannot directly trade power in the domestic market due to regulatory restrictions, is scouting for power distribution opportunities overseas. Besides, it is trying to branch into EPC (engineering, procurement and construction) business in other countries.

The company currently has 19 overseas projects that mainly involve consultancy in power transmission. It has international projects of around Rs 10,500 crore under execution.

Chairman and Managing Director R N Nayak told Business Standard that they were not only looking for transmission, but also distribution business. “We have executed around 33 per cent of rural electrification where we are distributing power as franchisee. Though we have experience, we can enter distribution business provided we are able to buy and trade power in the domestic market,” he said.

Nayak said the company wanted to expand its overseas portfolio by going beyond consultancy. Besides consultancy, the company’s international foray is also focusing on asset management, EPC and joint venture/acquisition. The consultancy business contributes about Rs 290 crore to the company’s overall income of Rs 10,785 crore at the end of financial year 2011-12.

PowerGrid already offers consultancy services in overseas markets, such as Nepal, Bangladesh, Sri Lanka, Afghanistan, Nigeria and Bhutan, among others. The company is still exploring opportunities in this sector in other countries.

The company’s focus areas outside India are SAARC (South Asian Association For Regional Cooperation), Africa and Gulf countries. It has added four new countries — Myanmar, Kenya, Ethiopia and Tajikistan — in the last financial year. The number of orders from international sector increased to nine in FY12 from six in FY11.

Drug export up 27% at Rs 60,000 crore in FY 12

New Delhi: India 's exports of drugs, pharmaceutical & fine chemicals grew 27% to Rs 60,000 crore for the year ended March 2012, according to data compiled by Pharmaceutical Exports Council of India (Pharmexcil).

The export figure is now close to the size of the Indian formulations market which currently stands at around Rs 62,000 crore, which is growing at 15-20% annually.

However, the exports and the local formulations numbers are not comparable as the exports data include sale of active pharmaceutical ingredients or basic raw materials used to make drug. The revenues of the domestic market takes into account only branded finished medicines.

US, the world's largest drug market continues to be biggest overseas market for local drug makers accounting for about Rs 11,500 crore during the nine-month period (April-December), the latest figure for individual countries available with Pharmexcil.

Indian companies exports low-cost version off-patented drugs to over 200 countries and is often referred to as the global pharmacy.

Among companies, Hyderabad-based Dr Reddy's Laboratories is the country's largest exporter. But in November, Ranbaxy launched its generic version of the world's best selling drug Lipitor and is estimated to have raked in about $600 million or Rs 3000 crore during an exclusive six month period which will substantially increase the company's exports figure.

Indian Railways commodity-wise freight revenue goes up by 25.64% during April-May 2012

New Delhi: Indian Railways have generated Rs 14,102 crore of revenue earnings from commodity-wise freight traffic during April-May 2012 as compared to Rs 11,148 crore during the corresponding period last year, registering an increase of 25.64 per cent.

Railways carried 164.38 million tonnes of commodity-wise freight traffic during April-May 2012 as compared to 157.23 million tonnes carried during the corresponding period last year, registering an increase of 4.55 per cent.

The Net Tonne Kilo Metres (NTKM) went up from 104,237 million during April-May 2011 to 104,951 million during April-May 2012, showing an increase of 0.68 per cent.

Out of the total earnings of Rs. 7196 crore from commodity-wise freight traffic during the month of May 2012, Rs. 3195 crore came from transportation of 41.62 million tonnes of coal, followed by Rs. 680 crore from 9.59 million tonnes of iron ore for exports, steel plants and for other domestic user and Rs. 762 crore from 9.53 million tonnes of cement

It also generated Rs. 475 crore from 3.33 million tonnes of foodgrains, Rs. 404 crore from 3.48 million tonnes of petroleum oil and lubricant (POL), Rs. 459 crore from 3.03 million tonnes of Pig iron and finished steel from steel plants and other points as well as Rs. 253 crore from 2.64 million tonnes of fertilizers.

Other sources of earnings included Rs. 118 crore from 1.26 million tonnes of raw material for steel plants except iron ore, Rs. 315 crore from 3.50 million tonnes by container service and Rs. 536 crore from 6.15 million tonnes of other goods.

India and US sign agreement on collaboration in Diabetes research

New Delhi: Indian and US have signed an agreement on collaboration in Diabetes Research. The agreement was signed between Ghulam Nabi Azad, Union Minister for Health and Family Welfare and Kathleen Sebelius, US Secretary, Health and Human Services during the bilateral meeting between India and the US.

The primary aim of this collaboration is to initiate a health research relationship between the two countries to generate a better understanding of the molecular and biological mechanisms underlying diabetes, to characterize the genetic, social and environmental determinants, and to identify innovative approaches for improving prevention and treatment of diabetes.

The two countries will promote and develop cooperation in the field of basic, clinical, and translational research in the areas of diabetes mellitus, on the basis of reciprocity and mutual benefit. Joint efforts will also focus on developing cost-effective tools and approaches to translate research results into policies and actions to improve the public health.

As part of this collaboration joint research programs in diabetes will be developed by the Indian Council of Medical Research and the Department of Biotechnology of the Ministry of Science and Technology, with National Institutes of Health of the Department of Health and Human Services, United States.

The main areas of cooperation will include identification of genetic and environmental etiologic factors and pathogenic mechanisms underlying development of diabetes and its complications; development of improved approaches and diagnostic tools to identify those with and at risk of diabetes and its complications; development and evaluation of innovative, sustainable intervention strategies for the prevention and/or treatment of diabetes and its associated co-morbidities; development and testing new treatment methodologies, including point of care and telemedicine technologies, diabetes self-management approaches, and improved technologies for insulin delivery and monitoring of glycemic control; study of the impact of social, economic, cultural and environmental factors on diabetes risk and management etc.

A Joint Steering Committee (JSC) will also be formed that will communicate regularly to identify new areas of cooperation, evaluate progress, and ensure the joint program operates smoothly, etc. The agreement between India and the US is significantly beneficial in view of the rising burden of Non Communicable Diseases in both countries.

This is the eighth agreement between the two countries in the field of health and medicine. Diabetes is a debilitating disease that affects tens of millions of people in the U.S. and India, and it is amongst the leading causes of death worldwide. In addition to the substantial human health costs, the estimated total financial cost for diabetes in both countries is staggering, and projected to increase substantially in coming years.

Multi-currency travel cards gain popularity

Kolkata: Multi-currency travel cards are gaining popularity among Indian travellers, prompting private sector banks to make a dash to launch this product.

For instance, HDFC Bank’s new travel card, which will be launched towards the end of this month, will have the option to load 10 currencies in one card. ING Vysya Bank has introduced a travel card that allows customers to carry as many as four currencies — US dollar, pound sterling, euro and Australian dollar — in one card. A couple of other private-sector lenders are also firming up plans to launch similar cards for their customers.

“Multi-currency travel cards are particularly suited for the corporate segment when employees are posted abroad or are travelling to multiple countries on a regular basis,” notes a senior official of Axis Bank. “Additionally, the card will also be preferred by business travellers.”

Industry players estimate that Indian travellers annually spend close to $1.2 billion through travel currency cards.

Axis Bank, which is also the largest issuer of travel currency cards in India with close to 48 per cent market share, will soon launch a multi-currency travel card. “At present, our travel currency cards are offered in 11 currencies. We plan to add Thai bhat soon,” the official adds. “Axis Bank also plans to launch a multi-currency travel card. Ideally, the four major currencies — US dollar, pound sterling, euro and Swiss franc — should be sufficient.”

HDFC Bank’s new travel card, which will be launched towards the end of this month, will have the option to load as many as 10 currencies in one card.

The spate of multi-currency card launches has raised doubts if the lenders would continue to offer single-currency cards. While bankers claim they are not in a hurry to phase out single-currency cards, they admit that customers now prefer multi-currency cards as they don’t have to carry more than one card during foreign travel.

“It is a much better and stronger product than any single-currency travel card currently available in the market,” says a senior official with HDFC Bank. “A multi-currency card will be popular among corporates, as their executives often have to travel from one country to another. But, over a period of time we expect even retail customers to shift to this product.”

According to bankers, a multi-currency travel card not only saves customers from the burden of carrying several cards; it also offers them protection from exchange rate fluctuations.

For instance, if a person has euro card and he travels to Australia, the amount he spends will depend on the foreign exchange rate between euro and the Australian dollar. This is because he has to convert the euro balance in his card into Australian dollar before making payments. But if he has a multi-currency card that allows him to load both euro and the Australian dollar, he does not have to convert euro into the dollar while making payments in the island-continent.

“There is a growing need for multi-currency cards as people are travelling abroad more frequently than before,” says a senior executive of ING Vysya Bank. “We expect that single-currency cards will be phased out over a period of time. Probably, there will be a single-currency card for those currencies that will not be available on multi-currency travel cards.”

ING Vysya Bank will continue to add new currencies to its multi-currency travel cards, he adds.

Some bankers, however, are of the opinion that leisure travellers will prefer single-currency cards, as they are simple to use. “Leisure travellers and students will still prefer a single-currency travel card based on the country of travel or education considering the convenience and simple usage,” adds the official with Axis Bank.

Chinese textile companies keen on setting up units in Gujarat

Gandhinagar: China's textile companies have evinced interest in setting up manufacturing units in Gujarat, a State Government official said here on Saturday.

Looking to partner with Gujarat-based companies, Chinese companies have also shown interest in investing in infrastructure projects, heavy engineering and equipment, renewable energy and the auto sector. Memorandums of Understanding (MoUs) in this regard are expected to be inked during the next Vibrant Gujarat Summit in January 2013.

This follows the November 2011 visit of the Gujarat Chief Minister, Mr Narendra Modi, to China.

With a huge increase in the production of cotton in Gujarat, textile industries of China are likely to set up their units in the State to reduce the transportation cost of raw material as well as finished products, which they sell in various markets of Asia, the Gulf region and Europe, the official said.

Business Delegation
The China Council for Promotion of International trade (CCPIT), the apex agency responsible for promoting Chinese business and industry, had invited a 15-member delegation from Gujarat to visit Beijing this week to interact with their Chinese counterparts.

Also, the China Enterprise Forum has invited the delegation to address the CEOs and heads of top Chinese companies at their annual China Global Outbound Investment Summit held at Beijing on June 14–15. The summit was supported by China's Ministry of Commerce.

The Indian Embassy in Beijing also organised a road show in partnership with the CCPIT, which is a partner of the Confederation of Indian Industry (CII).

After Mr Modi's visit, TBEA, China's largest power equipment maker, had agreed to invest $400 million to set up a mega green energy park in the State.

During the visit, Beijing University of Technology showed interest in collaborating with the Centre for Environment Planning and Technology University, Ahmedabad, on urban planning, high density habitat development, industrial and infrastructure planning for modern industry and heritage conservation.

Also, the University of Nottingham, China Campus, proposed to sign MoUs with CEPT University for collaboration on large-scale infrastructure and logistics.

CEPT University will send 30 students to China in January next year to conduct joint study and prepare master plans on urban development, particularly for Ningbo, a large industrial port city, the official pointed out.

Italy's Gi Group acquires 49% stake of its JV in Elixir Consulting

Bangalore: Italy-based Gi Group, a leading staffing company, has bought out the 49% stake of its joint venture partner Elixir Consulting for an estimated Rs 75-100 crore.

The $2-billion staffing giant forayed into India in 2008 through a JV with mid-level search and recruitment process outsourcing firm Elixir Consulting. The global company had a 51% stake in the JV while the rest was owned by Vipul Prakash, managing director of the Noida-based firm. Entering a market with a joint venture and then going on to buying out the partner is a strategy Gi pursues in emerging countries.

"When we enter any new market, our strategy is to buy some stake in the company. After few years of business operations and evaluation of future potential, we decide to increase the stake or acquire it (the JV) completely. The current deal is a part of the same strategy," said Davide Riboni, country head (India), Gi Group.

Though Riboni refused to comment on the size of the transaction, a senior member at Elixir said it was anywhere between Rs 75 crore and Rs 100 crore. "The procedure is not yet complete but the deal has been signed," said a senior member at Elixir who did not wish to be named.

Prakash started Elixir in 2000 as a firm focused on mid-level hiring and recruitment process outsourcing (RPO). An RPO is a form of outsourcing when a client transfers all its hiring processes to an outside service provider. He started another company called EWS Search in 2009, which looked at executive search segment.

A change of management is now on the anvil with a new CEO expected to join Elixir; which has an interim CEO at present. Prakash will remain a board member, but will not be involved in running the show, said the senior executive at Elixir. Riboni said the group may "consider having a resource with local knowledge and strong domain and leadership skills".

Hiring industry bosses say this sale shows that merger and acquisition in this market will now gather speed. "This is a big deal in the hiring sector and shows that global companies are looking to expand on the domestic turf," said Aditya Narayan Mishra, GM, Randstad. He added that the Indian arms on an average contribute at least 10% to overall global volumes.

A few years ago, Randstad had bought Ma Foi while others like Manpower, who have ventured on their own, are reported to be on the prowl as well.

Adecco bought Ajinkya in fiscal year 2008 to enter blue collar staffing space and TeamLease acquired IIJT to penetrate further into vocational training segment. Investments have also poured in to make the transitions aggressive with companies like Randstad investing 1.4 million euros for a name change in India.

For Gi Group, there are more acquisitions on the cards as well.

"We will be looking at more acquisitions across the sectors in India to strengthen our presence. The acquisitions would carry the objectives of reinforcing our current business as well as building capabilities to provide our customers with other affiliated services," said Riboni.

The temporary staffing business in India is estimated to be worth Rs 3,000 crore, the permanent staffing business is at nearly Rs 17,200 crore and the search market is around Rs 700 crore, according to a report by E&Y and Executive Recruiter's Association released in 2012.

Tourism Australia to double India marketing spend

Mumbai: Tourism Australia is seeking to secure a greater share of the 50 million Indians expected to travel overseas by 2020.

The India 2020 Strategic Plan developed by Tourism Australia will harness new research and increased resources, including a doubling of marketing spend in India in FY13 and adopt a targeted approach.

Tourism Potential
India is currently Australia’s 10th most valuable inbound tourism market, with 1.48 lakh visitors spending A$867 million in 2011. One of the world’s fastest growing outbound travel markets, India has a potential to rise in annual value to up to A$2.3 billion by 2020 and deliver 300,000 annual visitors, Tourism Australia said.

“India is a market of strong future potential for Australian tourism given this nation’s rapid rise through this Asian Century,” said Mr Andrew McEvoy, Tourism Australia Managing Director.He said that one of the keys to unlocking India’s long-term tourism potential is improved air access and capacity, acknowledging that the market is currently under-served by direct non-stop flights between India and Australia.

Increase Air Capacity
He said the Singapore Airlines - Virgin Australia alliance, Malaysian Airlines, the Qantas Group and Thai Airways, through their respective South East Asian hubs, supported the bulk of existing air services on the Australia-India route.

“Preliminary analysis suggests we’ll need an additional 3.45 lakh seats from our existing position to meet the expected demand for Australia from India out to 2020. Working with those carriers, which represent the best opportunity to support Indian travel to Australia, is, therefore, one of our top priorities under this plan,” Mr McEvoy said.

Indian arrivals to Australia have grown at a compound annual growth rate of 12.3 per cent over the last decade.

Indo-Brazilian trade slated to reach US$15 billion by 2015: Carlos Duarte, Brazilian ambassador to India

Kolkata: Indo-Brazilian trade is slated to reach US$15 billion by 2015. Brazil seeks India's cooperation in renewable energy resources, particularly bio-fuel. This was stated by Carlos Duarte, Ambassador Extraordinary and Plenipotentiary, Embassy of the Federative Republic of Brazil.

He was speaking at an interactive meet in the city on Friday, featuring nine Ambassadors of the Latin American and Caribbean region. The conference was staged by the Indian Chamber of Commerce on Friday.

Duarte mentioned that Brazil sports sustainable employment generation, creating 1.9 million jobs in 2011, greater access to education and lower income inequality. Brazil's international reserves stood at US$351.9 billion in 2011, marking its rising fiscal consolidation and lower public debt.

Juan Fernando Cordero Arias, Ambassador Extraordinary and Plenipotentiary, Embassy of the Republic of Costa Rica, highlighted that Costa Rica provides free and compulsory primary education to its population and possesses a supportive intellectual property regime in line with WIPO (World Intellectual Property Organisation), for facilitating international trade.

It is amongst the top five global outsourcing nations in the association of Latin American countries, with 40% of the total exports related to the global value chain, and 86% of the exports being conducted with countries with bilateral FTAs. In 2010 FDI comprised 4.1% of the country's GDP.

Javier Manual Paulinich Velarde, GRULAC (Group of Latin America and Caribbean Countries) Co-ordinator & Peruvian Ambassador in India extolled India as the most favourable investment destination globally and called for increased Indian investment in IT, services and technology. Peru offers free capital transfer for foreign companies and freedom to own national stocks.

Others participating in the meet include Genaro Vicente Pappalardo Ayala Praguayan Ambassador, Chile envoy Cristian Barros Melet, Cesar Ferrer, Uruguay Ambassador, Juan Larrea Charge d'Affaires, Embassy of the Ecuador, Ruben I. Zamora, Ambassador of El Salvador and Julio De la Guardia A., Ambassador from Panama.

The envoys invited businessmen of West Bengal to engage in trade and investment in Latam countries.

The principle sectors of Indo-LAC business cooperation emerging from the discussion were listed as pharma, cotton textiles and yarn, IT & ITes, mining, oil and gas, automotive components, mineral extraction, life sciences, advanced manufacturing, agro industries, chemicals, timber, gourmet services, oil, engineering, polyester, fishery, forestry and tourism.