Mumbai: Eicher Motors has signed a strategic joint venture agreement with US based powersports major, Polaris Industries, to set up a greenfield project in the automotive sector.
The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.
The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility, with production expected to start in 2015.
Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crores.
"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.
Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment, Lal said.
"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe." said Scott W Wine, CEO, Polaris Industries.
Success in my Habit
Friday, July 27, 2012
ONGC, Australian varsity ink pact to tap unconventional oil resources
Hyderabad: ONGC and an Australian University have set their eyes on tapping oil resources in some tough and challenging locales in India.
These are called basement reservoirs. The research initiative will evaluate the potential of these unconventional oil resources.
The School of Petroleum Engineering at the UNSW (University of New South Wales) and the ONGC have forged a research agreement.
The project will assess the feasibility of recovering hydrocarbon fuel from these hard to access, offshore geological structures called basement reservoirs. ONGC is keen on its Mumbai offshore basin, a report from the University said.
The $2.05-million project would be executed over the next two-and-a-half years. This is the fourth major project between UNSW and ONGC since first signing a memorandum of understanding in 2002.
“These are very hard rocks that contain fractures, which in turn, contain oil that is very difficult to extract,” explains Professor Val Pinczewski, Head of the School of Petroleum Engineering. “This is an important partnership for UNSW that has grown with time,” says Mr Pinczewski.
After developing suitable mathematical models, experiments with rock samples provided by ONGC will be conducted on field to test how much oil is recoverable.
These are called basement reservoirs. The research initiative will evaluate the potential of these unconventional oil resources.
The School of Petroleum Engineering at the UNSW (University of New South Wales) and the ONGC have forged a research agreement.
The project will assess the feasibility of recovering hydrocarbon fuel from these hard to access, offshore geological structures called basement reservoirs. ONGC is keen on its Mumbai offshore basin, a report from the University said.
The $2.05-million project would be executed over the next two-and-a-half years. This is the fourth major project between UNSW and ONGC since first signing a memorandum of understanding in 2002.
“These are very hard rocks that contain fractures, which in turn, contain oil that is very difficult to extract,” explains Professor Val Pinczewski, Head of the School of Petroleum Engineering. “This is an important partnership for UNSW that has grown with time,” says Mr Pinczewski.
After developing suitable mathematical models, experiments with rock samples provided by ONGC will be conducted on field to test how much oil is recoverable.
United Group opens design institute in Ahmedabad
Ahmedabad: Filling the gap in the design talent pool for industrial and non-industrial sector, Kolkata-headquartered United Group on Tuesday opened United Institute of Design in Ahmedabad.
Affiliated to the Gulbarga University, the institute will contribute in shaping the skills of talented designers in various design disciplines. The new campus located in Karnavati Knowledge Village, on the outskirts of Ahmedabad, has commenced from Tuesday.
United Institute of Design will offer four-year full-time degree programme in five disciplines of design namely fashion design, lifestyle and accessories design, product design, interior design, fine arts (visual communications & graphic design) and post graduation in fashion retail management area.
The institute will be mentored by alumni of National Institute of Design (NID), Centre for Environmental Planning and Technology (CEPT) University and Faculty of Fine Arts, M.S.University Vadodara. United Group MD Ritesh Hada said the institute would attempt to bridge the gap in the availability of design talent due to handful design institutes and the need from the industry.
Affiliated to the Gulbarga University, the institute will contribute in shaping the skills of talented designers in various design disciplines. The new campus located in Karnavati Knowledge Village, on the outskirts of Ahmedabad, has commenced from Tuesday.
United Institute of Design will offer four-year full-time degree programme in five disciplines of design namely fashion design, lifestyle and accessories design, product design, interior design, fine arts (visual communications & graphic design) and post graduation in fashion retail management area.
The institute will be mentored by alumni of National Institute of Design (NID), Centre for Environmental Planning and Technology (CEPT) University and Faculty of Fine Arts, M.S.University Vadodara. United Group MD Ritesh Hada said the institute would attempt to bridge the gap in the availability of design talent due to handful design institutes and the need from the industry.
Abhijeet Power, CLSA among 14 FDI proposals cleared
New Delhi: The Government has given a green signal to a Rs 674-crore foreign investment proposal by Abhijeet Power Ltd and another CLSA Singapore’s proposal to invest Rs 225 crore in the country.
These are among the 14 foreign direct investment proposals approved by the Government amounting to Rs 1,584.11 crore.
According to an official statement, Bajaj Finserv Ltd’s Rs 100-crore proposal relating to issue and allotment of equity shares to carry out business relating to NBFC activities also received the Government’s approval.
FIPB deferred 15 proposals and rejected seven. Among those rejected include Zara Holding’s proposal to set up joint venture with 51 per cent foreign equity participation for single brand retail. Appu Ghar Holdings proposal to make downstream investments was also turned down.
Among the proposals deferred include NYK Line Ltd setting up a limited liability partnership by indirect investment and Vyome Biosciences proposal to infuse foreign equity.
Three proposals have been advised that FIPB approval is not required. These include retailer Fabindia Overseas’ proposal to change shareholding structure of existing foreign investors within the approved holding limit of 51 per cent.
These are among the 14 foreign direct investment proposals approved by the Government amounting to Rs 1,584.11 crore.
According to an official statement, Bajaj Finserv Ltd’s Rs 100-crore proposal relating to issue and allotment of equity shares to carry out business relating to NBFC activities also received the Government’s approval.
FIPB deferred 15 proposals and rejected seven. Among those rejected include Zara Holding’s proposal to set up joint venture with 51 per cent foreign equity participation for single brand retail. Appu Ghar Holdings proposal to make downstream investments was also turned down.
Among the proposals deferred include NYK Line Ltd setting up a limited liability partnership by indirect investment and Vyome Biosciences proposal to infuse foreign equity.
Three proposals have been advised that FIPB approval is not required. These include retailer Fabindia Overseas’ proposal to change shareholding structure of existing foreign investors within the approved holding limit of 51 per cent.
Govt plans business index for industry
Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
Govt plans business index for industry
Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.
"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.
The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.
Tuesday, July 24, 2012
Juice production picks up in the year 2012: CMIE
Chennai: Fruit juice production has witnessed a smart recovery since its sudden drop in production last June, shows data collected by the Centre for Monitoring Indian Economy (CMIE). Back then, fruit juice production suddenly dropped from a high of 6.77 crore litre to nearly half that amount at 3.41 crore litre. Since then, though, juice production has been following more or less an upward curve with consistent increases right through since the beginning of this year. Juice production in January 2012 climbed to 2.04 crore litre, up more than 50% from the December 2011 tally of 1.32 crore litre.
February saw production zoom upwards once again by more than 50% to hit 3.09 crore litre, says CMIE. March and April clocked even higher numbers - 4.64 crore litre and a huge6.09 crore litre respectively. The April tally in fact was the closest the industry has come to the May 2011 high and the second highest tally in 14 months. Though juice production in May 2012 is lower than April, at 5.79 crore litre, it is still the third highest since last March.
Part of the skew can be contributed to seasonality of the raw material and the fact that fruit juice consumption typically hits a peak in summer months so production peaks accordingly. That explains why October and November are dull months for juice production - a trend borne out in 2011. July and August, being bang in the middle of the rainy season, are also dull months for juice consumption and therefore juice production. Fruit pulp production also follows a similar pattern, peaking at the height of summer when demand for fruit juice is the highest. Production jumped in May 2011, zoomed upwards to a yearly high in June, remained high in July and then petered off only to pick up in May 2012. Of course the onset and volume of the monsoon also play a part and fruit pulp production this year will doubtless be impacted by the patchy rains.
February saw production zoom upwards once again by more than 50% to hit 3.09 crore litre, says CMIE. March and April clocked even higher numbers - 4.64 crore litre and a huge6.09 crore litre respectively. The April tally in fact was the closest the industry has come to the May 2011 high and the second highest tally in 14 months. Though juice production in May 2012 is lower than April, at 5.79 crore litre, it is still the third highest since last March.
Part of the skew can be contributed to seasonality of the raw material and the fact that fruit juice consumption typically hits a peak in summer months so production peaks accordingly. That explains why October and November are dull months for juice production - a trend borne out in 2011. July and August, being bang in the middle of the rainy season, are also dull months for juice consumption and therefore juice production. Fruit pulp production also follows a similar pattern, peaking at the height of summer when demand for fruit juice is the highest. Production jumped in May 2011, zoomed upwards to a yearly high in June, remained high in July and then petered off only to pick up in May 2012. Of course the onset and volume of the monsoon also play a part and fruit pulp production this year will doubtless be impacted by the patchy rains.
India gets $5 million in first QFI investment; Kotak Mahindra Bank seals deal for US-based client
New Delhi: India has received its first investment through the qualified framework investor (QFI) route, putting an end to doubts that the country's attempt to get investors to buy shares directly will be a non-starter.
Kotak Mahindra Bank has concluded the deal worth $5 million for a US-based client, said a finance ministry official.
The finance ministry expects the scheme to attract investment worth about $30 billion over next 15-18 months, helping the country fund a chunk of the current account deficit pegged at 4.2% of GDP in 2011-12.
The finance ministry had held extensive road shows in five countries in the Gulf region--Riyadh, Dubai, Muscat, Kuwait and Bahrain - to project India as the incredible investment destination for wealthy investors. "There is tremendous interest in this scheme...We expect it to get investment worth 30-40 billion dollar over next 2 years," he said.
The ministry is now working on all tax related issues with regard to the scheme and will issue a detailed clarification in a fortnight, the official said.
Kotak Mahindra Bank has concluded the deal worth $5 million for a US-based client, said a finance ministry official.
The finance ministry expects the scheme to attract investment worth about $30 billion over next 15-18 months, helping the country fund a chunk of the current account deficit pegged at 4.2% of GDP in 2011-12.
The finance ministry had held extensive road shows in five countries in the Gulf region--Riyadh, Dubai, Muscat, Kuwait and Bahrain - to project India as the incredible investment destination for wealthy investors. "There is tremendous interest in this scheme...We expect it to get investment worth 30-40 billion dollar over next 2 years," he said.
The ministry is now working on all tax related issues with regard to the scheme and will issue a detailed clarification in a fortnight, the official said.
Rural India epicentre of the India growth story: HUL
Mumbai: Despite global commodity prices coming down, consumer goods maker Hindustan Unilever (HUL) is unlikely to pass on the benefits to the consumers soon.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
This remained the major concern for the shareholders at the company’s 79th Annual General Meeting held today at its new campus in Andheri.
Replying to shareholders woes, HUL Chairman, Mr Harish Manwani, said despite inflationary pressures and currency depreciation, the company had managed the cost pressures through judicious pricing, coupled with relentless focus on buying efficiencies and cost savings. “Had we not done that, the prices of the products across categories would have gone up by 15-20 per cent,” Mr Manwani added.
He further said the company has spent Rs 320 crore in the last fiscal on expanding categories, new product launches and innovation both in rural and urban India.
The focus on innovations and execution were taken in personal care and household products, he said, adding that the company will keep on investing in “categories of tomorrow.”
Products for men
Replying to a query from a shareholder on products for men, Mr Manwani said the company has invested enough on expanding several categories such as Axe, Denim and Fair and Lovely for men. Apart from this, the company is working towards reviving Brylcreem to get back the brand’s old glory and charm.
The company, earlier this year, bagged the global licence for Brylcreem from Godrej Consumers, after the latter ended its partnership with Sara Lee, the owner of Brylcreem.
He further said both Bharat and India must converge to make real progress and take the country on the global stage and that prosperity would have to come from villages, towns and cities. He added that rural India is now becoming the epicenter of India’s growth story.
“The explosion in rural consumption and growing competition for scarce resources demands that we work on public-private partnerships to address these challenges by finding innovative solutions and build on the opportunities,” Mr Manwani added.
On challenges faced by rural India, he said agricultural growth could pick up to 4 per cent as envisioned by the Planning Commission.
He went on to add that the cascading impact rural prosperity would have on the national economy, could add up to an additional 2 per cent to the national GDP growth and enable double digit growth.
The company also announced Rs 4 dividend to the shareholders.
RBI eases derivative contract norm
Mumbai: Banks need not classify hedging of derivative contracts that are terminated partially or fully as restructured accounts. The move, announced by the Reserve Bank of India (RBI) on Monday, would ease banks’ provisioning burden.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
Banks have also been permitted to allow payments in instalments if the mark-to-market (MTM) value of the terminated derivative contract, including the foreign exchange forward contract, is not settled in cash.
However, banks have been asked to formulate an appropriate policy, approved by the board, for such instalment payments. The repayment period will not extend beyond the maturity date of the contract.
“Banks should permit repayment in instalments only if there is a reasonable certainty of repayment by the client,” RBI said in a notification on Monday.
In addition, the repayment instalments for the MTM items should be uniformly received over the remaining maturity of the contract and its periodicity should be at least once in a quarter, the central bank said.
Earlier, banks had to make provisions for any change in the parameters of a derivative contract, as it was treated as restructuring.
Also, the MTM value of the contract on the date of restructuring needed to be settled in cash.
When the client is permitted to pay the MTM in instalments, RBI said, it should be done within 90 days of the date of partial or full termination of the derivative contract. If the amount is overdue for 90 days from the date of partial or full termination of the derivative contract, the receivables are to be classified as a non-performing asset (NPA).
Even after the derivative contract was terminated, partially or fully, and MTM was permitted to be repaid in instalments, if the client subsequently decides to hedge the same underlying exposure again by entering into a new contract with a bank, then banks can offer derivative contracts. But the client must have fully re-paid the instalments corresponding to the derivative contract previously used to hedge the underlying exposure.
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