Mumbai: Tech Mahindra on Tuesday announced the acquisition of Hutchison Global Services (HGS), the call centre arm of Hutch here, for $87.1 million (Rs 484.03 crore). "The deal will bring a new revenue of $845 million over the next five-year period as clients of HGS have committed to procure services worth that amount, and have agreed to HGS being their exclusive provider of certain agreed services here," Tech Mahindra executive vice-chairman Vineet Nayyar told reporters here on Tuesday evening. This could mean the software services major will see a revenue accretion of around $170 million per annum.
Nayyar said HGS will continue to operate as a separate entity for the time being. He said that the BPO has been providing services to Hutchison in the past and set up and operated their units in Indonesia and Australia. "We have just been awarded a contract for the same services in Britain for Hutchison's franchise called 3." But the British contract is not part of the HGS deal, he added.
Asked whether the deal is withholding tax-compliant, Nayyar answered in the affirmative. " Yes, we are fully aware of the tax laws. We have been complying with all tax laws."
Tech Mahindra CFO Sonjoy Anand said the company will comply with current tax laws that are applicable to any deals made out of Mauritius wherein the buyer ends up paying withholding tax. "The tax laws impact our transaction in a number of areas - on operational areas and transaction-related segments. As far as the transaction-related areas are concerned, there are some issues regarding interpretation and that need to be taken care of by us and Hutch. I cannot be very specific except to assure you that we have taken the best advice and we are going to make sure that we will be compliant with all the laws," Anand said. agencies
Success in my Habit
Thursday, September 6, 2012
India, Pakistan to sign 3 pacts soon to boost trade: Anand Sharma
New Delhi: India and Pakistan will soon sign three agreements – on customs co-operation, trade grievances redressal and mutual recognition, Commerce and Industry Minister Anand Sharma said on Tuesday.
“It (signing of the agreements) is a matter of weeks, maximum. There have been delays in visits. There have been changes in the Pakistan Administration. The Commerce Secretaries should have met three months ago.
“I am told that after the visit of the Indian External Affairs Minister to Pakistan, the Commerce Secretaries of India and Pakistan will meet in Islamabad. This will be another opportunity to take more steps,” he said while addressing a luncheon meeting organised for a visiting delegation of Members of Parliament from Pakistan.
The meeting was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
Sharma felt that the recent decision of the Indian Government to reduce the sensitive list by 30 per cent under the South Asia Free Trade Agreement would benefit Pakistan. He said that the decision covered all sectors that were important to Pakistan.
Land routes
India and Pakistan need to encourage trade by the land route, which currently was very small, he added.
The Minister said that India had proposed opening of the land route for trade along the Sialkot-Hussenewala border in Punjab and the Munabao-Khokharapar rail route.
It is also proposed that both countries would meet soon to work out a strategy on connectivity by linking each other’s Capitals by air. At present, Mumbai is linked with Karachi and Delhi with Lahore.
Sharma also mentioned that banks from both countries were also planning to open branches in each other’s lands.
Conceding that problems do exist, Sharma said that while he was not trying to simplify anything, it was imperative that irrespective of the issues there must be “maturity, wisdom and will” to overcome challenges that come in the way of building a durable partnership between India and Pakistan.
“It (signing of the agreements) is a matter of weeks, maximum. There have been delays in visits. There have been changes in the Pakistan Administration. The Commerce Secretaries should have met three months ago.
“I am told that after the visit of the Indian External Affairs Minister to Pakistan, the Commerce Secretaries of India and Pakistan will meet in Islamabad. This will be another opportunity to take more steps,” he said while addressing a luncheon meeting organised for a visiting delegation of Members of Parliament from Pakistan.
The meeting was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
Sharma felt that the recent decision of the Indian Government to reduce the sensitive list by 30 per cent under the South Asia Free Trade Agreement would benefit Pakistan. He said that the decision covered all sectors that were important to Pakistan.
Land routes
India and Pakistan need to encourage trade by the land route, which currently was very small, he added.
The Minister said that India had proposed opening of the land route for trade along the Sialkot-Hussenewala border in Punjab and the Munabao-Khokharapar rail route.
It is also proposed that both countries would meet soon to work out a strategy on connectivity by linking each other’s Capitals by air. At present, Mumbai is linked with Karachi and Delhi with Lahore.
Sharma also mentioned that banks from both countries were also planning to open branches in each other’s lands.
Conceding that problems do exist, Sharma said that while he was not trying to simplify anything, it was imperative that irrespective of the issues there must be “maturity, wisdom and will” to overcome challenges that come in the way of building a durable partnership between India and Pakistan.
Blackstone to invest Rs 243 cr in Indian fragrance maker SHK
Mumbai: American private equity firm Blackstone Group will invest Rs 243 crore in fragrance manufacturer S.H. Kelkar (SHK).
Manufacturer and supplier of fragrances and flavour ingredients to leading consumer goods firms in India and abroad, the Mumbai-based firm caters to around 2,000 customers.
“The company has unique intellectual property and a strong market presence for over eight decades.
“In the domestic fragrance market, SHK is the leader with a large customer base and is the only Indian player of scale. We are excited to partner with SHK management as we foresee a huge growth opportunity for SHK – both in the domestic and other emerging markets, driven by the growth in personal consumption in India, Africa and South-East Asia,” said Akhil Gupta, Senior Managing Director, Blackstone India.
Manufacturing units
The investments from Blackstone will help SHK expand its presence in the global markets and consolidate its position in India, the latter said in a statement.
SHK Group, led by Ramesh Vaze, has three manufacturing units in India (two fragrance units in Maharashtra and one bulk aroma chemicals unit in Vapi, Gujarat) and a manufacturing unit in the Netherlands. Wayzata had invested $21 million in SHK in September 2010 through its Wayzata II Indian Ocean Fund.
The company, with revenues of about Rs 575 crore, recently opened offices in Singapore, Indonesia and Thailand for sales across South-East Asia.
It also has four R&D units in Mumbai, Bangalore, the Netherlands and Indonesia.
Manufacturer and supplier of fragrances and flavour ingredients to leading consumer goods firms in India and abroad, the Mumbai-based firm caters to around 2,000 customers.
“The company has unique intellectual property and a strong market presence for over eight decades.
“In the domestic fragrance market, SHK is the leader with a large customer base and is the only Indian player of scale. We are excited to partner with SHK management as we foresee a huge growth opportunity for SHK – both in the domestic and other emerging markets, driven by the growth in personal consumption in India, Africa and South-East Asia,” said Akhil Gupta, Senior Managing Director, Blackstone India.
Manufacturing units
The investments from Blackstone will help SHK expand its presence in the global markets and consolidate its position in India, the latter said in a statement.
SHK Group, led by Ramesh Vaze, has three manufacturing units in India (two fragrance units in Maharashtra and one bulk aroma chemicals unit in Vapi, Gujarat) and a manufacturing unit in the Netherlands. Wayzata had invested $21 million in SHK in September 2010 through its Wayzata II Indian Ocean Fund.
The company, with revenues of about Rs 575 crore, recently opened offices in Singapore, Indonesia and Thailand for sales across South-East Asia.
It also has four R&D units in Mumbai, Bangalore, the Netherlands and Indonesia.
Reliance Cement begins production from Butibori unit
Coimbatore: The production of cement from Reliance Cement Company Private Ltd, a subsidiary of Reliance Infrastructure Ltd (Reliance Infra), has begun from the first manufacturing unit at Butibori, Nagpur in Maharashtra.
The unit would essentially meet the needs of the market in Vidarbha, the company said in a communication to the stock exchanges.
RCC is building two cement plants with a total capacity of 10 mt in M.P. and Maharashtra with associated grinding plants. The strategy was to have clinker producing plants nearer to key raw material-limestone, and grinding units closer to the markets.
Sumit Banerjee, Vice-Chairman of RCC, explained that the company wanted to be counted among the top 5 cement producers in India in the next five years. Apart from the two projects each with a capacity of 5 million tonnes per annum, several other projects were under different stages of development.
The unit would essentially meet the needs of the market in Vidarbha, the company said in a communication to the stock exchanges.
RCC is building two cement plants with a total capacity of 10 mt in M.P. and Maharashtra with associated grinding plants. The strategy was to have clinker producing plants nearer to key raw material-limestone, and grinding units closer to the markets.
Sumit Banerjee, Vice-Chairman of RCC, explained that the company wanted to be counted among the top 5 cement producers in India in the next five years. Apart from the two projects each with a capacity of 5 million tonnes per annum, several other projects were under different stages of development.
Suzlon arm wins Australia order
Mumbai: Suzlon Group’s subsidiary REpower Systems has a bagged an order worth Australian $ 260 million.
It will supply 131 MW of wind turbines to Meridian Energy, Australia.
The project, Mt Mercer wind farm project is based in Victoria. This is REpower’s first contract with Meridian Energy and the company’s largest ‘supply & install’ contract for its MM series turbines in Australia. The turbines are scheduled for commissioning between September 2013 and January 2015, Suzlon said.
Tulsi Tanti, Chairman, Suzlon Group: “The combination of our product portfolio; our deep experience in installing and operating projects in very challenging conditions; and our exceptional operating record, with turbine availability consistently exceeding the industry average, makes us the partner of choice in the Australian market.”
It will supply 131 MW of wind turbines to Meridian Energy, Australia.
The project, Mt Mercer wind farm project is based in Victoria. This is REpower’s first contract with Meridian Energy and the company’s largest ‘supply & install’ contract for its MM series turbines in Australia. The turbines are scheduled for commissioning between September 2013 and January 2015, Suzlon said.
Tulsi Tanti, Chairman, Suzlon Group: “The combination of our product portfolio; our deep experience in installing and operating projects in very challenging conditions; and our exceptional operating record, with turbine availability consistently exceeding the industry average, makes us the partner of choice in the Australian market.”
SIDBI enters into loan agreement with KFW Germany for MSME innovation finance programme
Mumbai: SIDBI has entered into a loan agreement with KFW Germany for 53 million Euros for MSME innovation finance programme.
The MSME or medium, small and micro enterprises Innovation Finance Programme has been formulated to promote entrepreneurial innovations particularly those relating to clean technologies.
Another objective of the program is to catalyze the development of financing instruments specifically tailored to the requirements of innovative MSMEs.
SIDBI, in its press note said, the assistance will be provided in the form of loan / risk capital assistance / quasi equity products specifically tailored to meet the needs of innovative MSMEs.
SIDBI was established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989. It is the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities.
The MSME or medium, small and micro enterprises Innovation Finance Programme has been formulated to promote entrepreneurial innovations particularly those relating to clean technologies.
Another objective of the program is to catalyze the development of financing instruments specifically tailored to the requirements of innovative MSMEs.
SIDBI, in its press note said, the assistance will be provided in the form of loan / risk capital assistance / quasi equity products specifically tailored to meet the needs of innovative MSMEs.
SIDBI was established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989. It is the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities.
India explores trade options with Myanmar
Kolkata: A delegation led by the Indian Chamber of Commerce had visited Myanmar last month to explore bilateral trade opportunities with the country. According to a release, a 22-member delegation including ICC director general, Rajeev Singh and representatives from PWC, Ultratech Cements, Finolex Cables and Bangur Group had visited Myanmar. Jointly organised by Indian Embassy in Yangon and Consulate General of India, Mandalay, the meeting discussed issues relating to trade facilitation through setting up world-class integrated facilities at “Land Custom Stations”, development of “Border Haats”, establishment of “Joint Trade and Investment Forum” and regularisation of trade exchanges.
The ICC delegation saw a good prospect in infrastructure development for transport and tourism sectors with implementation of signed Air Service agreements between India and Myanmar, the release added
The ICC delegation saw a good prospect in infrastructure development for transport and tourism sectors with implementation of signed Air Service agreements between India and Myanmar, the release added
Monday, September 3, 2012
EMC ties up with Netmagic Solutions
As a part of this tie-up, Netmagic will consolidate IT infrastructure that is hosted on private or public cloud and consolidate it into a hybrid cloud computing environment. A hybrid cloud environment helps in a mix and match of public and private IT infrastructure that can be hosted and accessed as per their requirements.
Further Netmagic cloud computing service called SimpliCloud is an Infrastructure-as-a-Service platform that is powered by EMC storage for public cloud computing offerings. Also, it will customise and dedicate storage offerings with hosting and management capabilities along with disaster recovery, replication and software monitoring capabilities.
The cloud-based services offered by Netmagic Solutions will address the mid-market and enterprise segments.
“Together, EMC and Netmagic Solutions will focus on addressing customer needs for reliable cloud services, especially in verticals such as media, entertainment, BFSI, government and IT & ITES which are high growth for us,’’ said Rajesh Janey, President, EMC India & SAARC.
The programme will provide sales, marketing, planning and education to partners as they invest in EMC solutions to deliver cloud services to the global IT market.
Also available are business development and services creation resources to enable partners to develop differentiated offerings built on EMC technology, marketing support including marketing development funds, campaigns, field execution and sales enablement tools.
Leading Chinese companies eye greenfield projects in Gujarat
Ahmedabad: Four leading Chinese companies will visit Ahmedabad in September to explore investment opportunities in Gujarat.
The companies- Wuxi Xinje Automation, Sunfar, Estun Automation and Zhejiang Chint Electric Co-are eyeing investments in greenfield projects and partnerships in Gujarat.
The Chinese companies will meet entrepreneurs in Gujarat at a business conference organized by India China Economic & Cultural Council (ICEC) on September 12, 2012.
Maheshwar Sahu, principal secretary-industries & mines, Government of Gujarat along with Peng Gang, commercial counselor, embassy of the People's Republic of China along will address the meet of 100 participants.
As part of their first visit to the state, the Chinese companies will make presentations on their profile, products and business opportunities at the conference.
"ICEC plans to install an operational windmill at the event to put across the message of a clean and green Gujarat," said Jagat Shah, chairman, ICEC-Gujarat chapter.
Zhejiang Chint Electric Co is a manufacturer of switchgear, circuit breakers and distribution box besides many other electrical products. The company, which had taken up the electrification project for Beijing Olympic Games 2008, is looking at making investments in the manufacturing sector in India. Sunfar is a maker of invertors and is interested in creating a distribution network in India besides setting up greenfield projects.
Estun Automation, which is a manufacturer of servo motors and industrial robotics, is exploring a greenfield project and distribution network. Wuxi Xinje Automation, which is the manufacturer of human machine interface, touch panel, touch screen, touch LCD, touch screen monitor among other technology, is also looking at Gujarat for making investments.
The companies- Wuxi Xinje Automation, Sunfar, Estun Automation and Zhejiang Chint Electric Co-are eyeing investments in greenfield projects and partnerships in Gujarat.
The Chinese companies will meet entrepreneurs in Gujarat at a business conference organized by India China Economic & Cultural Council (ICEC) on September 12, 2012.
Maheshwar Sahu, principal secretary-industries & mines, Government of Gujarat along with Peng Gang, commercial counselor, embassy of the People's Republic of China along will address the meet of 100 participants.
As part of their first visit to the state, the Chinese companies will make presentations on their profile, products and business opportunities at the conference.
"ICEC plans to install an operational windmill at the event to put across the message of a clean and green Gujarat," said Jagat Shah, chairman, ICEC-Gujarat chapter.
Zhejiang Chint Electric Co is a manufacturer of switchgear, circuit breakers and distribution box besides many other electrical products. The company, which had taken up the electrification project for Beijing Olympic Games 2008, is looking at making investments in the manufacturing sector in India. Sunfar is a maker of invertors and is interested in creating a distribution network in India besides setting up greenfield projects.
Estun Automation, which is a manufacturer of servo motors and industrial robotics, is exploring a greenfield project and distribution network. Wuxi Xinje Automation, which is the manufacturer of human machine interface, touch panel, touch screen, touch LCD, touch screen monitor among other technology, is also looking at Gujarat for making investments.
Essar to retail fuel in Kenya
Mumbai: After Indian Oil Corporation’s decision to sell petroleum products abroad, London-listed Essar Energy is following suit. Essar, the largest private fuel retailer in the country, would set up retail outlets in Kenya.
The company has set up a pilot fuel retail outlet in the African country, where the likes of KenolKobil are already present. “Essar has set up a pilot retail outlet in Kenya under the franchisee model,” an Essar Energy spokesperson stated in an email response.
Fuel for the outlets would be sourced from Essar’s refinery in Kenya. The retail outlets would be set up under the Essar brand; the company wouldn’t partner any local company for this. “Currently, we are studying the market and, depending on the outcome, may undertake modest expansion,” the spokesperson added.
As part of its global expansion plans, Essar Energy had acquired 50 per cent stake in Kenya Petroleum Refineries (KPRL) in 2009 from Royal Dutch Shell, BP and Chevron. The government of Kenya owns the remaining 50 per cent in the company’s equity. The refinery processes crude oil primarily imported from the Gulf region for marketing companies. KPRL’s primary products include liquefied petroleum gas, unleaded premium gasoline, regular petrol, automotive gasoil, industrial diesel, fuel oil and special products like bitumen and grease.
In June, KPRL had signed a financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan. The agreement would enable KPRL to access $250 million and transform the toll refinery to a merchant refinery. “This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies,” said Brij Mohan Bansal, chief executive, KPRL.
Currently, KPRL receives crude oil from oil marketing companies. A merchant refinery would enable KPRL to purchase its own crude oil.
The refinery currently processes 1.6 million tonnes of crude oil a year. After the transition, it would process Murban crude from the United Arab Emirates. It would also be able to handle crude oil from cheaper sources. The refinery would continue to focus on servicing the main Kenyan market, the most dominant in the region. Kenya has a demand of about 4 million cubic metres per year.
Essar Energy also owns Stanlow refinery in the UK, which it bought on July 31, 2011, for $350 million.
The refinery has a nameplate capacity of 2,96,000 barrels per stream day, though currently, it operates at about 70 per cent of this level. The refinery is UK’s second-largest and helps meet about 15 per cent of the country’s gasoline requirements, along with large volumes of diesel and jet fuel. Refined fuels from Stanlow are distributed across the UK, mainly by roads and pipelines.
After the company had announced its results for the quarter ended June, it had said it would not expand its retail operations in India till there was clarity on pricing of diesel in the country.
Essar Oil, a unit of Essar Energy through a franchise model, operates about 1,400 retail outlets, with 200 outlets under various stages of construction. The fuel retail outlets across India sell gasoline and gasoil under the Essar brand. The company is also increasing non-fuel retailing activities in its portfolio of retail outlets to provide an additional source of revenue.
The company has set up a pilot fuel retail outlet in the African country, where the likes of KenolKobil are already present. “Essar has set up a pilot retail outlet in Kenya under the franchisee model,” an Essar Energy spokesperson stated in an email response.
Fuel for the outlets would be sourced from Essar’s refinery in Kenya. The retail outlets would be set up under the Essar brand; the company wouldn’t partner any local company for this. “Currently, we are studying the market and, depending on the outcome, may undertake modest expansion,” the spokesperson added.
As part of its global expansion plans, Essar Energy had acquired 50 per cent stake in Kenya Petroleum Refineries (KPRL) in 2009 from Royal Dutch Shell, BP and Chevron. The government of Kenya owns the remaining 50 per cent in the company’s equity. The refinery processes crude oil primarily imported from the Gulf region for marketing companies. KPRL’s primary products include liquefied petroleum gas, unleaded premium gasoline, regular petrol, automotive gasoil, industrial diesel, fuel oil and special products like bitumen and grease.
In June, KPRL had signed a financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan. The agreement would enable KPRL to access $250 million and transform the toll refinery to a merchant refinery. “This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies,” said Brij Mohan Bansal, chief executive, KPRL.
Currently, KPRL receives crude oil from oil marketing companies. A merchant refinery would enable KPRL to purchase its own crude oil.
The refinery currently processes 1.6 million tonnes of crude oil a year. After the transition, it would process Murban crude from the United Arab Emirates. It would also be able to handle crude oil from cheaper sources. The refinery would continue to focus on servicing the main Kenyan market, the most dominant in the region. Kenya has a demand of about 4 million cubic metres per year.
Essar Energy also owns Stanlow refinery in the UK, which it bought on July 31, 2011, for $350 million.
The refinery has a nameplate capacity of 2,96,000 barrels per stream day, though currently, it operates at about 70 per cent of this level. The refinery is UK’s second-largest and helps meet about 15 per cent of the country’s gasoline requirements, along with large volumes of diesel and jet fuel. Refined fuels from Stanlow are distributed across the UK, mainly by roads and pipelines.
After the company had announced its results for the quarter ended June, it had said it would not expand its retail operations in India till there was clarity on pricing of diesel in the country.
Essar Oil, a unit of Essar Energy through a franchise model, operates about 1,400 retail outlets, with 200 outlets under various stages of construction. The fuel retail outlets across India sell gasoline and gasoil under the Essar brand. The company is also increasing non-fuel retailing activities in its portfolio of retail outlets to provide an additional source of revenue.
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