Kochi: The Spices Board has decided to partner with CII and USFDA to set up a collaborative training centre for food safety and supply chain management. This is to clear apprehension and concern on quality of spices and spices products exported from India.
Inaugurating the collaborative training centre here on Monday, A. Jayathilak, Chairman, Spices Board, said that the centre, the first of its kind in India, is the culmination of the decision taken in the aftermath of the World Spice Congress held in Pune in February this year.
The collaborative training centre for food safety and supply chain management in spices/botanical ingredients is being set up to facilitate capacity building and developing product specific testing procedures in the sector of spices and botanical ingredients.
Spices Board and CII – FACE (Jubilant Bhartia Food and Agriculture Centre of Excellence) is partnering with JIFSAN (The Joint Institute for Food Safety and Applied Nutrition) / USFDA (US Food and Drug Administration) in establishing the centre.
The first phase of the training has commenced in Kochi on Monday being attended by over 60 officials and functionaries from 50 organisations from both the Government and non government sector consisting of processors, trader, exporters, etc.
The phase two for selected deleparticipants attending phase two would be involved in a series of workshop and gates will be held in the US for two weeks. In phase three, training programmes in different regions of India.
Supply chain help
The training centre assumes importance in the context of most of the countries especially the US and EU bringing in stringent legislations regarding the standards of spices imported to respective countries. This will give producing countries like India, an edge over the other competitors on the export front.
The centre would strengthen the supply chain management for both domestic and international trade through providing technical support to organisations through training, information sharing and technical consultancy to organisations selected by the Board, in the upgradation of their manufacturing, processing facilities, quality control assurance system, implementing hygiene and food safety management system, etc.
Various stakeholders in the supply chain will be provided with training, counselling, consultancy, etc to build up their capabilities and enable them to be globally competitive.
Success in my Habit
Tuesday, September 18, 2012
Federation of Hotel & Restaurant Associations of India joins hand with four International Hospitality Associations
The apex hospitality industry body, Federation of Hotel & Restaurant Associations of India (FHRAI) has signed four Memorandum of Understandings (MoUs) with its international counterparts, spanning in USA, Europe, Middle East, UK, China and UNWTO fostering a new relationship between the Indian and foreign hoteliers to exchange expertise and fraternity strategy evolution.
The international associations including, the Hospitality Financial and Technology Professionals (HFTP), the Asian American Hotel Owners Association (AAHOA), the International Hotel & Restaurant Association (IH&RA), United Nations World Tourism Organization (UNWTO) and American Hotel & Lodging Educational Institute (AHLEI) were present at the recently held 47 thAnnual FHRAI Convention at Goa.
FHRAI adopted IH&RA's iconic programme, Evolution (Global sustainability management platform) for its members in India. FHRAI has become the first Association in India adopting this exclusive programme that was adopted by thousands of hoteliers Worldwide.
Mr. Kamlesh Barot, President, FHRAI, said, "Indian Hospitality industry is on its growth trajectory and the leaders of this industry are committed to the cause of tourism promotion in this country tapping the huge potential of cultural diversity to offer as a showcase to tourists . IH&RA has also invited FHRAI members to join their Emeraude Hotel program."
"With these 2 programs, FHRAI will be the FIRST association in Asia to promote active sustainability at their member hospitality establishments," added Mr. Barot.
The international associations including, the Hospitality Financial and Technology Professionals (HFTP), the Asian American Hotel Owners Association (AAHOA), the International Hotel & Restaurant Association (IH&RA), United Nations World Tourism Organization (UNWTO) and American Hotel & Lodging Educational Institute (AHLEI) were present at the recently held 47 thAnnual FHRAI Convention at Goa.
FHRAI adopted IH&RA's iconic programme, Evolution (Global sustainability management platform) for its members in India. FHRAI has become the first Association in India adopting this exclusive programme that was adopted by thousands of hoteliers Worldwide.
Mr. Kamlesh Barot, President, FHRAI, said, "Indian Hospitality industry is on its growth trajectory and the leaders of this industry are committed to the cause of tourism promotion in this country tapping the huge potential of cultural diversity to offer as a showcase to tourists . IH&RA has also invited FHRAI members to join their Emeraude Hotel program."
"With these 2 programs, FHRAI will be the FIRST association in Asia to promote active sustainability at their member hospitality establishments," added Mr. Barot.
RBI cuts CRR; home, auto loans set to become cheaper
MUMBAI: Home and auto loans will gradually become cheaper over the next few months with the Reserve Bank of India announcing a cut in the cash reserve ratio (CRR) by a quarter of a percentage point (25 basis points) to 4.5% in its policy review meeting on Monday. The central bank, however disappointed industry by leaving its key policy rates —repo and reverse repo —unchanged, mainly because of a sudden spike in the rate of inflation for August.
Repo rate is the rate at which banks borrow money from RBI in case they are short of funds, while reverse repo rate is the rate of interest banks get when they park their surplus funds with the central bank. CRR, on the other hand is the liquid cash that banks need to keep with the RBI to meet any emergency cash requirement and the central bank does not pay any interest to banks on this money.
Once rate of inflation starts falling, which corporate heads and economists believe could happen around Diwali in November, interest rates would come down at a faster clip, benefiting consumers, home and car buyers as well as corporate entities.
Chances of a cut in interest rates by banks for consumers lifted stocks of consumer industries like automobiles and real estate and led to a 78-point rise in the sensex. The rupee too reacted positively, breaking above the 54 mark to the dollar, a 4-month high, in intra-day trades but closed at 54.01 to a dollar, compared to 54.31 on Friday.
The RBI, in its statement said that the cut in CRR would release around Rs 17,000 crore into the economy, meaning banks will have this much extra money to lend to their borrowers. "Given the comfortable liquidity and the recent reduction in deposit rates by banks, interest rates in general could be expected to trend downwards gradually," said Chanda Kochhar, MD & CEO, ICICI Bank. "However, we will have to continue to keep an eye on funding costs given the level of CASA deposit growth in the system," Kochhar said.
India Inc could also take succour from finance MinisterP Chidambaram statement that the government would take further steps in the next one and a half months to bring more fiscal discipline, while indicating that the response of the central bank on October 30 will be more supportive of growth. Corporates still want more. "A major stimulus in reduction of interest rate and implementation of these policy changes hold the key to long-term sustainable growth," Harsh Goenka, chairman, RPG Enterprises, said.
Economists expect that the RBI will soon decide to buy government securities from the market, called open market operations (OMOs), which would leave even more funds with banks to lend. At a time when credit offtake is slow, the combined impact of CRR cut and OMOs could eventually lead to much greater availability of funds in the system, which in turn could lead to a 50-100 basis points (bps) drop in the rates of interest in the economy, economists TOI spoke to said.
"The policy stance remains cautious given the current high headline inflation and the high chance of the headline print going up further in coming months," said Siddhartha Sanyal, India economist, Barclays Capital. Of late the central bank has been using the liquidity enhancement measures more often (it cut CRR in January, March and now in September and cut SLR in April and exports credit refinance in June) than going for a cut in key policy rates. "The RBI policy of late suggests its hesitation to use the headline repo rate at the moment, while the central bank remains more comfortable easing the liquidity measures further," Sanyal said.
Economists also believe that the cut in CRR has the potential to boost the profitability of banks by about Rs 2,000 crore, since this would lower the amount of non-interest earning cash with the RBI.
In addition to the increasing chances of a fall in rate of interest, the corporate sector is also enthused by RBI's slightly dovish statement now, which accommodates the general concern about the slowdown in economic growth, compared to its earlier stance that earned it the sobriquet of an inflation hawk. "RBI's mid quarter policy statement appears more dovish than its previous statements this year, possibly resulting from recent positive fiscal actions," said Ajay Srinivasan, chief executive—financial services, Aditya Birla Group.
In its statement, the central bank acknowledged that monetary policy also had an important role in supporting the revival of growth in the economy, but given the persistently high inflation, along with risks emerging from twin deficits (current account and fiscal), a stronger monetary policy to perk up growth may even backfire.
Repo rate is the rate at which banks borrow money from RBI in case they are short of funds, while reverse repo rate is the rate of interest banks get when they park their surplus funds with the central bank. CRR, on the other hand is the liquid cash that banks need to keep with the RBI to meet any emergency cash requirement and the central bank does not pay any interest to banks on this money.
Once rate of inflation starts falling, which corporate heads and economists believe could happen around Diwali in November, interest rates would come down at a faster clip, benefiting consumers, home and car buyers as well as corporate entities.
Chances of a cut in interest rates by banks for consumers lifted stocks of consumer industries like automobiles and real estate and led to a 78-point rise in the sensex. The rupee too reacted positively, breaking above the 54 mark to the dollar, a 4-month high, in intra-day trades but closed at 54.01 to a dollar, compared to 54.31 on Friday.
The RBI, in its statement said that the cut in CRR would release around Rs 17,000 crore into the economy, meaning banks will have this much extra money to lend to their borrowers. "Given the comfortable liquidity and the recent reduction in deposit rates by banks, interest rates in general could be expected to trend downwards gradually," said Chanda Kochhar, MD & CEO, ICICI Bank. "However, we will have to continue to keep an eye on funding costs given the level of CASA deposit growth in the system," Kochhar said.
India Inc could also take succour from finance MinisterP Chidambaram statement that the government would take further steps in the next one and a half months to bring more fiscal discipline, while indicating that the response of the central bank on October 30 will be more supportive of growth. Corporates still want more. "A major stimulus in reduction of interest rate and implementation of these policy changes hold the key to long-term sustainable growth," Harsh Goenka, chairman, RPG Enterprises, said.
Economists expect that the RBI will soon decide to buy government securities from the market, called open market operations (OMOs), which would leave even more funds with banks to lend. At a time when credit offtake is slow, the combined impact of CRR cut and OMOs could eventually lead to much greater availability of funds in the system, which in turn could lead to a 50-100 basis points (bps) drop in the rates of interest in the economy, economists TOI spoke to said.
"The policy stance remains cautious given the current high headline inflation and the high chance of the headline print going up further in coming months," said Siddhartha Sanyal, India economist, Barclays Capital. Of late the central bank has been using the liquidity enhancement measures more often (it cut CRR in January, March and now in September and cut SLR in April and exports credit refinance in June) than going for a cut in key policy rates. "The RBI policy of late suggests its hesitation to use the headline repo rate at the moment, while the central bank remains more comfortable easing the liquidity measures further," Sanyal said.
Economists also believe that the cut in CRR has the potential to boost the profitability of banks by about Rs 2,000 crore, since this would lower the amount of non-interest earning cash with the RBI.
In addition to the increasing chances of a fall in rate of interest, the corporate sector is also enthused by RBI's slightly dovish statement now, which accommodates the general concern about the slowdown in economic growth, compared to its earlier stance that earned it the sobriquet of an inflation hawk. "RBI's mid quarter policy statement appears more dovish than its previous statements this year, possibly resulting from recent positive fiscal actions," said Ajay Srinivasan, chief executive—financial services, Aditya Birla Group.
In its statement, the central bank acknowledged that monetary policy also had an important role in supporting the revival of growth in the economy, but given the persistently high inflation, along with risks emerging from twin deficits (current account and fiscal), a stronger monetary policy to perk up growth may even backfire.
NSL to set up 75 MW wind farm in Maharashtra, secures IFC loan
Hyderabad: NSL Renewable Power Private Ltd, a subsidiary of NSL Group, is setting up a 75 MW wind farm in Maharashtra in two phases.
It has secured a $19 million (about Rs 100 crore) loan from International Finance Corporation for its wind power farm.
International Finance Corporation, World Bank Group, which had also earlier invested in NSL firm, recently approved the investment to part fund the wind project estimated to cost about Rs 500 crore.
The Hyderabad-based diversified group is setting up several wind farms including a 75 MW wind power project in Chilarwadi village in Satara district of Maharashtra. This is being implemented by its step down subsidiary NSL Wind Power Company (Satara) Private Ltd.
The company proposes to implement the project in two phases with 25.5 MW in the first phase. Each phase will have a construction period of six months from the commencement of work.
For NSL arm, the project involves supply, erection and operations and maintenance of 50 wind turbines with each unit generating 1.5 mw. This is to be supplied by ReGen under a supply pact with NSL Wind. ReGen, a group firm, is also operations and maintenance operator of the project. It has constructed a 220 kV transmission line from pooling station to Maharashtra State transmission company.
The diversified NSL group has interests in seeds, power including renewable energy, sugar and infrastructure.
It has secured a $19 million (about Rs 100 crore) loan from International Finance Corporation for its wind power farm.
International Finance Corporation, World Bank Group, which had also earlier invested in NSL firm, recently approved the investment to part fund the wind project estimated to cost about Rs 500 crore.
The Hyderabad-based diversified group is setting up several wind farms including a 75 MW wind power project in Chilarwadi village in Satara district of Maharashtra. This is being implemented by its step down subsidiary NSL Wind Power Company (Satara) Private Ltd.
The company proposes to implement the project in two phases with 25.5 MW in the first phase. Each phase will have a construction period of six months from the commencement of work.
For NSL arm, the project involves supply, erection and operations and maintenance of 50 wind turbines with each unit generating 1.5 mw. This is to be supplied by ReGen under a supply pact with NSL Wind. ReGen, a group firm, is also operations and maintenance operator of the project. It has constructed a 220 kV transmission line from pooling station to Maharashtra State transmission company.
The diversified NSL group has interests in seeds, power including renewable energy, sugar and infrastructure.
ITC flags off world's largest green hotel
Chennai: ITC today launched its imposing Grand Chola, a 600-key luxury hotel in Chennai. Inaugurated by J. Jayalalithaa, Chief Minister of Tamil Nadu, this hotel is the company’s biggest property in the country and “the world’s largest LEED Platinum green hotel (an eco certificate).”
Third largest hotel in India
In terms of room inventory, this will be the third largest hotel in the country, after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai.
The company has invested over Rs 1,200 crore in the property which spreads over eight acres of land.
Designed to “recall the grandeur and lifestyle of the imperial Chola dynasty,” the integrated upmarket hotel complex also houses one lakh sq.ft. of conference and exhibition facilities, which, according to the company, is by far the biggest in the country — 10 food and beverage outlets, a spa, a preview theatre and 40,000 sq.ft. of retail space. It will carry the tag of ‘Luxury Collection’ — one of the brands franchised from the US-based international hospitality group, Starwood Hotels. This is the ninth ‘Luxury Collection’ hotel of the group.
Addressing the media at a conference organised here to mark the launch of the property today, Y.C. Deveshwar, Chairman, ITC Ltd, said this kind of banqueting space will market Chennai in a big way, and will bring in a lot of new businesses.
Though at present, Chennai seems to be a little “over-supplied market,” the city needs such a product, “as we see greater demand in the months to come,” he said. According to industry experts, with 0.55 rooms per every 1,000 people, Chennai has the lowest hotel room penetration among the major cities. For example, Mumbai has 0.57 rooms, New Delhi has 0.59; Hyderabad 0.62 and Bangalore 0.84 room per 1,000 people.
Intended to be a game-changer, will Grand Chola cannibalise ITC’s other properties in the city, and eat into the market share of other brands for the time being? “Yes, it will. But, every brand has to compete,” said Deveshwar.
Third largest hotel in India
In terms of room inventory, this will be the third largest hotel in the country, after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai.
The company has invested over Rs 1,200 crore in the property which spreads over eight acres of land.
Designed to “recall the grandeur and lifestyle of the imperial Chola dynasty,” the integrated upmarket hotel complex also houses one lakh sq.ft. of conference and exhibition facilities, which, according to the company, is by far the biggest in the country — 10 food and beverage outlets, a spa, a preview theatre and 40,000 sq.ft. of retail space. It will carry the tag of ‘Luxury Collection’ — one of the brands franchised from the US-based international hospitality group, Starwood Hotels. This is the ninth ‘Luxury Collection’ hotel of the group.
Addressing the media at a conference organised here to mark the launch of the property today, Y.C. Deveshwar, Chairman, ITC Ltd, said this kind of banqueting space will market Chennai in a big way, and will bring in a lot of new businesses.
Though at present, Chennai seems to be a little “over-supplied market,” the city needs such a product, “as we see greater demand in the months to come,” he said. According to industry experts, with 0.55 rooms per every 1,000 people, Chennai has the lowest hotel room penetration among the major cities. For example, Mumbai has 0.57 rooms, New Delhi has 0.59; Hyderabad 0.62 and Bangalore 0.84 room per 1,000 people.
Intended to be a game-changer, will Grand Chola cannibalise ITC’s other properties in the city, and eat into the market share of other brands for the time being? “Yes, it will. But, every brand has to compete,” said Deveshwar.
Dubai-based KEF Company to invest Rs 1,600 cr in Kerala
Kochi: The Dubai-based KEF Company has unveiled plans for three projects in the State, involving an investment of Rs 1,600 crore.
They include a luxury hotel, integrated manufacturing facilities with pre-cast concrete technology and a super speciality hospital in Kozhikode.
Faizal Kottikollon, chairman, told reporters here that a modern integrated manufacturing facility, specialising in precast concrete technology, is the first project being planned.
A world-class 500-bed tertiary care hospital and a five-star hotel are next in line. These projects are expected to create 5,000 to 10,000 jobs in the State, he said.
Integrated Factories
Three factories will have integrated manufacturing facilities with pre-cast concrete technology for making kitchens, toilets, doors and windows at an investment of Rs 300 crore.
The precast plant, he said, is envisaged as a high-tech, quality-controlled facility for the development of infrastructure sector. It will ensure enhanced quality and expediting on-time project execution.
Quoting studies, he said that precast technology provides significant benefits in early completion of the project, with time savings of up to 40 per cent over conventional methods of construction.
Hospital Project
The 500-bed super-specialty hospital is being built as a joint venture with the PeeKay Group, a leading business group in Kerala and Ali Faizal, a renowned cardiologist in Kozhikode.
The facility, which is expected to open by the end of next year, will primarily focus on cardiac sciences, neurosciences and orthopaedics, along with a world-class rehabilitation programme. The company is aiming to create a research based centre of excellence and establish it as a novel centre of medical tourism in the region.
5-Star Hotel
The hotel will be set up on 30 acres at Chelambra in Kozhikode with a modern convention centre to accommodate 3,500 people.
The KEF Company that operates out of Dubai International Financial Centre is a multi-tiered holding company with interests across eight verticals that include infrastructure, healthcare, hospitality, education, investments, agriculture, metals and sports.
They include a luxury hotel, integrated manufacturing facilities with pre-cast concrete technology and a super speciality hospital in Kozhikode.
Faizal Kottikollon, chairman, told reporters here that a modern integrated manufacturing facility, specialising in precast concrete technology, is the first project being planned.
A world-class 500-bed tertiary care hospital and a five-star hotel are next in line. These projects are expected to create 5,000 to 10,000 jobs in the State, he said.
Integrated Factories
Three factories will have integrated manufacturing facilities with pre-cast concrete technology for making kitchens, toilets, doors and windows at an investment of Rs 300 crore.
The precast plant, he said, is envisaged as a high-tech, quality-controlled facility for the development of infrastructure sector. It will ensure enhanced quality and expediting on-time project execution.
Quoting studies, he said that precast technology provides significant benefits in early completion of the project, with time savings of up to 40 per cent over conventional methods of construction.
Hospital Project
The 500-bed super-specialty hospital is being built as a joint venture with the PeeKay Group, a leading business group in Kerala and Ali Faizal, a renowned cardiologist in Kozhikode.
The facility, which is expected to open by the end of next year, will primarily focus on cardiac sciences, neurosciences and orthopaedics, along with a world-class rehabilitation programme. The company is aiming to create a research based centre of excellence and establish it as a novel centre of medical tourism in the region.
5-Star Hotel
The hotel will be set up on 30 acres at Chelambra in Kozhikode with a modern convention centre to accommodate 3,500 people.
The KEF Company that operates out of Dubai International Financial Centre is a multi-tiered holding company with interests across eight verticals that include infrastructure, healthcare, hospitality, education, investments, agriculture, metals and sports.
Biocon and Manipal Education Malaysia ink pact for talent management program
Bengaluru: Bangalore-based biotechnology firm Biocon entered into a partnership with Manipal Education Malaysia (MEMp) for a graduate program on Talent Management in biotech sector. The MOU will include an internship and graduate employment program for students of Manipal International University who will be trained and employed in Biocon's Malaysian factory.
"As we expand our footprint into Malaysia, we want to ensure that we play our part in the development of the Malaysian Human Resource for the biopharmaceutical industry. Our biopharma facility in Bio-XCell, Iskandar Malaysia will be a fully-integrated manufacturing and R&D facility which will require many talented graduates, not just in biotechnology, but also in other management disciplines. We would like to hire a large number of good local talent and nurture them further to shape up into fine biotech professionals, " said CMD Kiran Mazumdar Shaw.
Biocon is developing its manufacturing and R&D facility in Iskandar Malaysia, Johor with an investment of over RM 500 million, which will be operational in 2014.
"Universities cannot operate in isolation. Industry linkages are crucial to ensure continuous relevance between syllabus with industry development and latest R&D. Industry linkages also provide our students with industrial training and employment opportunities, thus, it is our aim to forge linkages with global industry leaders, like Biocon."
"As we expand our footprint into Malaysia, we want to ensure that we play our part in the development of the Malaysian Human Resource for the biopharmaceutical industry. Our biopharma facility in Bio-XCell, Iskandar Malaysia will be a fully-integrated manufacturing and R&D facility which will require many talented graduates, not just in biotechnology, but also in other management disciplines. We would like to hire a large number of good local talent and nurture them further to shape up into fine biotech professionals, " said CMD Kiran Mazumdar Shaw.
Biocon is developing its manufacturing and R&D facility in Iskandar Malaysia, Johor with an investment of over RM 500 million, which will be operational in 2014.
"Universities cannot operate in isolation. Industry linkages are crucial to ensure continuous relevance between syllabus with industry development and latest R&D. Industry linkages also provide our students with industrial training and employment opportunities, thus, it is our aim to forge linkages with global industry leaders, like Biocon."
Government clears 51% FDI in retail, 49% in aviation
NEW DELHI: After months of dilly-dallying, UPA mustered courage on Friday to throw open the gates to foreign investment in a host of sectors considered political no-go zones like multi-brand retail and civil aviation in a bid to dispel the perception of policy paralysis.
This will pave the way for the much-awaited entry of foreign retail giants such as Walmart, Tesco and Carrefour into the $450 billion retail market, although their footprint will be limited to million-plus cities in states which have agreed to back the measure.
The decisions on Friday, along with a go-ahead for disinvestment in four PSUs to mop up Rs 14,000 crore, come within a day of the ruling coalition's decision to raise diesel price by a stiff Rs 5 a litre and cap subsidized cooking gas cylinders to six a year for every household.Taken together, they mark the most ambitious reform rush by the beleaguered government which has been roundly attacked for drift and diminished will to take bold measures. Faced with dwindling political fortunes, the UPA appears to have finally resorted to a flurry of actions aimed at salvaging the government's precarious finances and retrieving the sinking reforms legacy of the Manmohan Singh regime.
There were loud protests from non-Congress parties which may shortly call for a countrywide shutdown.
Govt driven by perform or perish mantra
But the government, driven by a "perform or perish" mantra, asserted it will stick to its decisions which have been taken after factoring in the resistance of allies and opponents. There is a recognition that the cost of inaction will be far more severe, given the worsening finances and real threat of a ratings downgrade. With experts and its own top leadership feeling that the window for decision-making is shrinking fast, there was an air of determination in the government taking on allies and outside supporters who have crippled its options for months
On the upside, government can expect a roaring reception from the financial markets on Monday as a global rally triggered by monetary easing in the US and Germany's green signal to a Eurozone recovery package ties in with Friday's initiatives. This can prove to be a mood-enhancer for UPA as it heads into state polls in Himachal Pradesh and Gujarat.
The decision to leave it to states to allow foreign retailers is meant to blunt the opposition. However, it has been sought to be balanced by improving the terms for the foreign players. Riders such as sourcing norms and rules to open stores in cities with a population of over one million have been tweaked for the benefit of foreign players, who can now pick up 51% stake in Indian joint ventures. So far, these players could only set up single-brand stores or enter the wholesale segment and sell bulk buyers such as canteens, restaurants and kirana shops.
Bowing to pressure from foreign players such as IKEA, the government eased sourcing norms for single-brand retail and permitted them to buy at least 30% of the goods from Indian industry, instead of the earlier stipulation that made purchases mandatory from small and medium units.
In case of civil aviation, where FDI is already permitted, the government has relaxed rules to allow foreign carriers to buy up to 49% stake in Indian airlines, a decision that throws a lifeline to ailing Kingfisher and other smaller players. PM Manmohan Singh sought support for the decisions, saying they were needed to tide over difficult times and make India a more attractive destination for foreign investors.
Times View
Those who are opposing FDI in retail on the grounds that lakhs of small traders will lose out are making big mistake. They are forgetting that the loss for these traders will be more than compensated by the gains to hundreds of millions of consumers and farmers who will benefit from cutting out these middlemen. The big retailers that will result from letting FDI in should hugely improve efficiencies in the retail trade and the economy can only benefit from that. Political parties may have reason to focus on only one half of the picture, but the aam admi should not be misled by this. The gainers should vastly outnumber the losers.
This will pave the way for the much-awaited entry of foreign retail giants such as Walmart, Tesco and Carrefour into the $450 billion retail market, although their footprint will be limited to million-plus cities in states which have agreed to back the measure.
The decisions on Friday, along with a go-ahead for disinvestment in four PSUs to mop up Rs 14,000 crore, come within a day of the ruling coalition's decision to raise diesel price by a stiff Rs 5 a litre and cap subsidized cooking gas cylinders to six a year for every household.Taken together, they mark the most ambitious reform rush by the beleaguered government which has been roundly attacked for drift and diminished will to take bold measures. Faced with dwindling political fortunes, the UPA appears to have finally resorted to a flurry of actions aimed at salvaging the government's precarious finances and retrieving the sinking reforms legacy of the Manmohan Singh regime.
There were loud protests from non-Congress parties which may shortly call for a countrywide shutdown.
Govt driven by perform or perish mantra
But the government, driven by a "perform or perish" mantra, asserted it will stick to its decisions which have been taken after factoring in the resistance of allies and opponents. There is a recognition that the cost of inaction will be far more severe, given the worsening finances and real threat of a ratings downgrade. With experts and its own top leadership feeling that the window for decision-making is shrinking fast, there was an air of determination in the government taking on allies and outside supporters who have crippled its options for months
On the upside, government can expect a roaring reception from the financial markets on Monday as a global rally triggered by monetary easing in the US and Germany's green signal to a Eurozone recovery package ties in with Friday's initiatives. This can prove to be a mood-enhancer for UPA as it heads into state polls in Himachal Pradesh and Gujarat.
The decision to leave it to states to allow foreign retailers is meant to blunt the opposition. However, it has been sought to be balanced by improving the terms for the foreign players. Riders such as sourcing norms and rules to open stores in cities with a population of over one million have been tweaked for the benefit of foreign players, who can now pick up 51% stake in Indian joint ventures. So far, these players could only set up single-brand stores or enter the wholesale segment and sell bulk buyers such as canteens, restaurants and kirana shops.
Bowing to pressure from foreign players such as IKEA, the government eased sourcing norms for single-brand retail and permitted them to buy at least 30% of the goods from Indian industry, instead of the earlier stipulation that made purchases mandatory from small and medium units.
In case of civil aviation, where FDI is already permitted, the government has relaxed rules to allow foreign carriers to buy up to 49% stake in Indian airlines, a decision that throws a lifeline to ailing Kingfisher and other smaller players. PM Manmohan Singh sought support for the decisions, saying they were needed to tide over difficult times and make India a more attractive destination for foreign investors.
Times View
Those who are opposing FDI in retail on the grounds that lakhs of small traders will lose out are making big mistake. They are forgetting that the loss for these traders will be more than compensated by the gains to hundreds of millions of consumers and farmers who will benefit from cutting out these middlemen. The big retailers that will result from letting FDI in should hugely improve efficiencies in the retail trade and the economy can only benefit from that. Political parties may have reason to focus on only one half of the picture, but the aam admi should not be misled by this. The gainers should vastly outnumber the losers.
Monday, September 17, 2012
Ranbaxy to start second facility in Malaysia with $40-m investment
New Delhi: Ranbaxy Malaysia Sdn Bhd (RMSB), a wholly owned subsidiary of Ranbaxy Laboratories on Thursday got the approval to set up a manufacturing facility in Malaysia as an entry point project (EPP).
The company will invest $40 million in this project that will provide employment to over 200 people. It will be Ranbaxy’s second manufacturing facility in Malaysia.
“In addition to serving the local market, the facility will also export products to markets such as Asean, West Asia, Europe, Sri Lanka, China and other select countries,” Arun Sawhney, Chief Executive Officer and Managing Director of Ranbaxy said.
He said the new facility will manufacture dosage forms including tablets and capsules in the cardiovascular, anti diabetic, anti-infective and gastrointestinal segments.
Ranbaxy’s total output in Malaysia will be increased from one billion doses per annum to three billion doses per annum when the new facility gets into full operation, he said.
RMSB is a joint venture company of Ranbaxy Laboratories, India and Malaysian shareholders. Established in 1982, it has facility in Sungai Petani, Kedah, Malaysia that was commissioned in 1987. It employs over 300 employees.
Ranbaxy’s shares closed at Rs 550.20 on Thursday on the Bombay Stock Exchange, down 2.01 per cent from the previous close.
The company will invest $40 million in this project that will provide employment to over 200 people. It will be Ranbaxy’s second manufacturing facility in Malaysia.
“In addition to serving the local market, the facility will also export products to markets such as Asean, West Asia, Europe, Sri Lanka, China and other select countries,” Arun Sawhney, Chief Executive Officer and Managing Director of Ranbaxy said.
He said the new facility will manufacture dosage forms including tablets and capsules in the cardiovascular, anti diabetic, anti-infective and gastrointestinal segments.
Ranbaxy’s total output in Malaysia will be increased from one billion doses per annum to three billion doses per annum when the new facility gets into full operation, he said.
RMSB is a joint venture company of Ranbaxy Laboratories, India and Malaysian shareholders. Established in 1982, it has facility in Sungai Petani, Kedah, Malaysia that was commissioned in 1987. It employs over 300 employees.
Ranbaxy’s shares closed at Rs 550.20 on Thursday on the Bombay Stock Exchange, down 2.01 per cent from the previous close.
Grasim Industries ties up with Japan's Omikenshi Co to develop new international markets for rayon products.
Kolkata: Aditya Birla Group's Grasim IndustriesBSE 1.93 % has entered into an agreement with Japan's Omikenshi Co to jointly develop new international markets for several functional rayon products.
As per the agreement, Grasim and Omikenshi will develop the technology together and manage the increased production as they enter new markets.
""Synergies between Grasim and Omikenshi will be leveraged for delivering enhanced value to the customers. We look forward to build a strong long term relationship with Omikenshi,"" said KK Maheswari, managing director at Grasim Industries.
Omikenshi president Makoto Otomura said the combination of Grasim's considerable production capacity and Omikenshi's functional rayon technology will open market for both companies.
In addition to specific products at the core of the agreement, the two companies will also explore future collaboration through a joint R&D programme.
As per the agreement, Grasim and Omikenshi will develop the technology together and manage the increased production as they enter new markets.
""Synergies between Grasim and Omikenshi will be leveraged for delivering enhanced value to the customers. We look forward to build a strong long term relationship with Omikenshi,"" said KK Maheswari, managing director at Grasim Industries.
Omikenshi president Makoto Otomura said the combination of Grasim's considerable production capacity and Omikenshi's functional rayon technology will open market for both companies.
In addition to specific products at the core of the agreement, the two companies will also explore future collaboration through a joint R&D programme.
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