New Delhi: Government-owned Oil India Limited (OIL) and Indian Oil Corporation (IOC) have together acquired 30 per cent stake in a producing US shale asset at an investment of $82.5 million (Rs 427 crore). This is the first shale acquisition by the two companies in the US. OIL will buy 20 per cent and IOC 10 per cent stake in the asset owned by Carrizo, a Nasdaq-listed company.
The deal entitles the two Indian firms to a 30 per cent stake in the daily production of 1,850 barrels of oil equivalent. The two companies, through their wholly-owned US subsidiaries, have acquired 30 per cent of Carrizo's interest in 61,500 acres in Colorado's Denver-Julesburg basin, a well-known producing one in the US.
The investment provides an early entry into a prolific unconventional oil play to the two companies.
This is not the first Indian investment in a US shale asset. Last September, Gail had acquired 20 per cent stake at Carrizo’s Eagle Ford shale acreage in south Texas for $95 million (Rs 492 crore). The acquisition was GAIL’s first shale gas asset in the US. Similarly, Mukesh Ambani-promoted Reliance Industries (RIL) holds 45 per cent in Eagle Ford and 60 per cent in a Marcellus Shale gasfield through a joint venture with Carrizo. RIL’s shale gas business in the US comprises three upstream joint ventures with Chevron, Pioneer Natural Resource and Carrizo Oil & Gas, and a midstream joint venture with Pioneer. Aggregate investments since the inception of these joint ventures stand at Rs 22,000 crore ($4 billion).
OIL Chairman S K Srivastava said the acquisition will give the company a first-hand exposure in shale oil and gas. This will facilitate the company’s domestic shale gas plans when the government auctions acreages in the near future.
The total consideration of Rs 427 crore comprises an upfront payment of Rs 213.5 crore, and an assumption of Rs 213.5 crore of Carrizo's future drilling and development costs. OIL Director (finance) T K Ananth Kumar said the company had set aside Rs 7,000 crore to fund acquisitions this year. “Many other opportunities are being discussed, and we are hopeful of sealing more deals in coming months,” he said.
“Our share of peak production, estimated to reach in three-four years, would be 3,700 barrels of oil-equivalent a day,” said N K Bharali, director (human resources and business development). The joint venture would spend $230 million (Rs 1,190 crore) over the next three-four years on the shale property. Current output from the field comprises 69 per cent of oil, 14 per cent of natural gas liquids and 17 per cent of dry gas, Bharali said.
OIL to pick bankers for FPO
OIL Director (finance) T K Ananth Kumar said the market condition is good for the follow on public offer and the company will select three bankers on October 17, after which finance ministry will decide on a road map. On September 14, the government decided to disinvest 10 per cent of its equity, meaning its stake would come down to 68.43 per cent.
Success in my Habit
Friday, October 5, 2012
Indian cos to be front-runners in adopting mobile workstyles: Study
Mumbai: India would be front-runner in adopting mobile work-styles, with workplace of the future providing just seven desks for every 10 workers. Globally, almost a quarter (24 per cent) of companies has already fully adopted mobile workstyles.
By 2020, organisations are set to reduce office space by almost a fifth (17 per cent), and each person will access corporate IT network from an average of six different computing devices, according to study by Nasdaq-listed IT firm Citrix.
The trend towards fewer office-based employees – who use multiple computing devices to access corporate applications, data and services from a range of locations outside of the traditional office – is part of a global trend called mobile workstyles.
By the middle of 2014, 83 per cent of organisations will have embraced mobile workstyles. The Citrix Workplace of the Future report polled 1,900 senior IT decision-makers across 19 countries.
Some of the highest desk-to-worker ratios in 2020 would be in Japan (8.77), South Korea (7.95) and Germany (7.90) and India (7.12). The figure for 2020 is as low as six desks for every 10 workers in Singapore, the Netherlands, the US and the UK.
“Organisations are encouraging people to operate outside of the traditional workplace on their own personal devices to improve the bottomline – by making the organisation more responsive, improving productivity and reducing the cost of real estate and device management,” said Mick Hollison, Vice-President, integrated marketing and strategy Citrix.
“At the same time, organisations are investing in the space they have to create enticing workplaces that foster collaboration, innovation and creativity. The result is a stronger organisation, with high calibre people performing at their best. The technology to enable the workplace of the future is already available and proven, and plans for workplace redesign can easily be put in place. The real winners will be those that get the people management and culture right, to empower the workforce of the future,” he added
Workspace of Future
Almost every organisation says it will redesign office space to be more appealing. The workplace of the future will foster creativity, be inspiring and encourage collaboration by enabling people to work from wherever, whenever and on whatever device so that work becomes something people do, not a place people go.
The global report also reveals that a third of people (29 per cent) will no longer work from their traditional office. Instead, employees will base themselves from various semi-permanent locations including the home (64 per cent), field and project sites (60 per cent), and customer or partner premises (50 per cent). People are also expected to access corporate applications, data and services while mobile from locations such as hotels, airports, coffee shops and while in transit.
For organisations, mobile workstyles create a more flexible, agile workplace (73 per cent), lower employee-related costs (53 per cent), reduce real estate costs (48 per cent) and help attract (47 per cent) and retain (44 per cent) top talent.
Employees benefit from more flexibility (65 per cent), increased personal productivity (62 per cent), less commuting time (61 per cent), and a better work/life balance (55 per cent) are other benefits. It also helps them spend more time with customers (48 per cent).
The majority of organisations (83 per cent) will use bring-your-own-device initiatives to manage the growing number of devices that people use to access the corporate network. Employees will generally choose and purchase their own computing devices, with 76 per cent of organisations reimbursing the employee in-part or fully.
By 2020, organisations are set to reduce office space by almost a fifth (17 per cent), and each person will access corporate IT network from an average of six different computing devices, according to study by Nasdaq-listed IT firm Citrix.
The trend towards fewer office-based employees – who use multiple computing devices to access corporate applications, data and services from a range of locations outside of the traditional office – is part of a global trend called mobile workstyles.
By the middle of 2014, 83 per cent of organisations will have embraced mobile workstyles. The Citrix Workplace of the Future report polled 1,900 senior IT decision-makers across 19 countries.
Some of the highest desk-to-worker ratios in 2020 would be in Japan (8.77), South Korea (7.95) and Germany (7.90) and India (7.12). The figure for 2020 is as low as six desks for every 10 workers in Singapore, the Netherlands, the US and the UK.
“Organisations are encouraging people to operate outside of the traditional workplace on their own personal devices to improve the bottomline – by making the organisation more responsive, improving productivity and reducing the cost of real estate and device management,” said Mick Hollison, Vice-President, integrated marketing and strategy Citrix.
“At the same time, organisations are investing in the space they have to create enticing workplaces that foster collaboration, innovation and creativity. The result is a stronger organisation, with high calibre people performing at their best. The technology to enable the workplace of the future is already available and proven, and plans for workplace redesign can easily be put in place. The real winners will be those that get the people management and culture right, to empower the workforce of the future,” he added
Workspace of Future
Almost every organisation says it will redesign office space to be more appealing. The workplace of the future will foster creativity, be inspiring and encourage collaboration by enabling people to work from wherever, whenever and on whatever device so that work becomes something people do, not a place people go.
The global report also reveals that a third of people (29 per cent) will no longer work from their traditional office. Instead, employees will base themselves from various semi-permanent locations including the home (64 per cent), field and project sites (60 per cent), and customer or partner premises (50 per cent). People are also expected to access corporate applications, data and services while mobile from locations such as hotels, airports, coffee shops and while in transit.
For organisations, mobile workstyles create a more flexible, agile workplace (73 per cent), lower employee-related costs (53 per cent), reduce real estate costs (48 per cent) and help attract (47 per cent) and retain (44 per cent) top talent.
Employees benefit from more flexibility (65 per cent), increased personal productivity (62 per cent), less commuting time (61 per cent), and a better work/life balance (55 per cent) are other benefits. It also helps them spend more time with customers (48 per cent).
The majority of organisations (83 per cent) will use bring-your-own-device initiatives to manage the growing number of devices that people use to access the corporate network. Employees will generally choose and purchase their own computing devices, with 76 per cent of organisations reimbursing the employee in-part or fully.
India eyes $40 billion global generic market; patents held by MNCs to expire in over 3 years
New Delhi: In a first-of-its-kind initiative, India has launched a sustained global campaign to capture an estimated $40 billion worth of additional market for generic or copied medicines as patents held by multinationals on sophisticated medicines run out over the next three years.
While emphasis is on countries with ageing population such as Japan, which needs more of cheaper medicine, large markets such as Africa and Latin America are also in focus.
"We see an opening of $30-40 billion market for Indian generics over the next three years as patents on a number of drugs run out," additional commerce secretary Rajeev Kher told ET. "We want to send out a message to the world that we have the capacity to fill in this space with high quality yet cheap medicines."
The commerce department is going all out to hard-sell Indian generics in difficult but promising markets under its recently launched Brand India Pharma campaign where the focus is on credibility, quality, availability and affordability of Indian medicines, he added.
It is also working with its embassies in Africa and other countries to dispel misinformation spread about Indian generics by global pharma biggies.India's pharma exports stood at $13 billion last year.
The country produces a fifth of the generic medicines of the world and accounts for about 70% of medicines supplied to poor countries through humanitarian agencies.
The commerce department recently led two delegations comprising Indian pharma majors like Dr Reddy's, Lupin, Mylan and Nectar, to Japan and Indonesia under the Brand India Pharma Campaign to explore opportunities in the big but difficult markets.
India, which accounts for less than 1% of Japanese pharma market estimated at over $100 billion, hopes to make big gains under the free trade pact or CECA signed last year.
Next destination for about 200 leading generic manufacturers in India for showcasing their products is Madrid where India is the partner country in the world's leading pharma networking event CPhI beginning next week. This is the first time that the government has approved a pharma sector specific India show.
"For the first time ever, India is a partner country in the event which will allow over 200 Indian companies to closely interact with buyers from more than a 100 countries and display their strengths," Kher said.
"They will also get the opportunity to meet regulators from various countries to understand the dynamics of different markets."
Analysts say the timing to promote Indian generics globally is just right as the next three years will be crucial in terms of opportunity.
"While patent expiries are expected to peak out in 2012, we believe that the growth momentum would sustain as most Indian companies have a fairly well spread out product pipeline till 2014," according to a recent paper by rating agency ICRA.
"While some companies have a healthy pipeline of FTF (first-to-file) opportunities, others are likely to benefit from the launch of niche, limited competition products."
India's largest generic pharma company Ranbaxy has already given US drug major Pfizer a run for its money by launching the generic version of the anti-cholesterol drug Lipitor whose patent expired last year.
Ranbaxy has gained a larger market share for the medicine that had helped Pfizer generate about a sixth of its revenue over the last few years.
While emphasis is on countries with ageing population such as Japan, which needs more of cheaper medicine, large markets such as Africa and Latin America are also in focus.
"We see an opening of $30-40 billion market for Indian generics over the next three years as patents on a number of drugs run out," additional commerce secretary Rajeev Kher told ET. "We want to send out a message to the world that we have the capacity to fill in this space with high quality yet cheap medicines."
The commerce department is going all out to hard-sell Indian generics in difficult but promising markets under its recently launched Brand India Pharma campaign where the focus is on credibility, quality, availability and affordability of Indian medicines, he added.
It is also working with its embassies in Africa and other countries to dispel misinformation spread about Indian generics by global pharma biggies.India's pharma exports stood at $13 billion last year.
The country produces a fifth of the generic medicines of the world and accounts for about 70% of medicines supplied to poor countries through humanitarian agencies.
The commerce department recently led two delegations comprising Indian pharma majors like Dr Reddy's, Lupin, Mylan and Nectar, to Japan and Indonesia under the Brand India Pharma Campaign to explore opportunities in the big but difficult markets.
India, which accounts for less than 1% of Japanese pharma market estimated at over $100 billion, hopes to make big gains under the free trade pact or CECA signed last year.
Next destination for about 200 leading generic manufacturers in India for showcasing their products is Madrid where India is the partner country in the world's leading pharma networking event CPhI beginning next week. This is the first time that the government has approved a pharma sector specific India show.
"For the first time ever, India is a partner country in the event which will allow over 200 Indian companies to closely interact with buyers from more than a 100 countries and display their strengths," Kher said.
"They will also get the opportunity to meet regulators from various countries to understand the dynamics of different markets."
Analysts say the timing to promote Indian generics globally is just right as the next three years will be crucial in terms of opportunity.
"While patent expiries are expected to peak out in 2012, we believe that the growth momentum would sustain as most Indian companies have a fairly well spread out product pipeline till 2014," according to a recent paper by rating agency ICRA.
"While some companies have a healthy pipeline of FTF (first-to-file) opportunities, others are likely to benefit from the launch of niche, limited competition products."
India's largest generic pharma company Ranbaxy has already given US drug major Pfizer a run for its money by launching the generic version of the anti-cholesterol drug Lipitor whose patent expired last year.
Ranbaxy has gained a larger market share for the medicine that had helped Pfizer generate about a sixth of its revenue over the last few years.
India's Services Purchasing Managers Index up in September: HSBC
Mumbai: India's services sector, which contributes the most to the country's GDP, continued to accelerate in September, led by a rise in new business and a pick up in employment. However, business sentiment in the country eased a bit during the month, possibly due to the continued rise in inflation pressures, a release from global financial services major HSBC, based on a monthly survey of purchasing managers, said.
"Both input and output prices accelerated in September on the back of higher fuel and wage costs. A steady rise in growth and inflation in the largest sector of the economy should make the RBI more cautious about lowering policy rates too quickly," the note from HSBC said. According to HSBC's India PMI, service sector activity picked up pace in September with a score of 55.8 points against 55.0 in August. New business flows also increased in September, at 56.7 points compared to 55.9 in August, but business expectations for the coming 12 months fell notably, to 67.2 points in September from 74.0 in August. The composite index for manufacturing and services rose to 55 from 54.3 in August on the back of a pick up in services, the note said. The survey also showed that both input prices (54.3 compared to 53.5 in August) and prices charged (54 compared to 53.3 in August) rose at a faster pace. "Panelists said higher fuel prices, labour costs and taxes drove inflation up," it said.
What these finds imply, according to HSBC, are services continue to trend up, visibly diverging from manufacturing where growth is restrained by the lagged impact of monetary policy, weak global economic backdrop, and slow progress on structural reforms in recent years. "The rise in services is likely led by domestic demand given the weak global economic backdrop. A buoyant rural sector could be adding to the resilience of the services sector," the note added. Looking ahead, HSBC believes growth in services should continue to remain supported by domestic demand and the positive sentiment effects from the recent improvement in policy reform momentum. "However, elevated inflation will dampen the growth in spending power," it said.
"Both input and output prices accelerated in September on the back of higher fuel and wage costs. A steady rise in growth and inflation in the largest sector of the economy should make the RBI more cautious about lowering policy rates too quickly," the note from HSBC said. According to HSBC's India PMI, service sector activity picked up pace in September with a score of 55.8 points against 55.0 in August. New business flows also increased in September, at 56.7 points compared to 55.9 in August, but business expectations for the coming 12 months fell notably, to 67.2 points in September from 74.0 in August. The composite index for manufacturing and services rose to 55 from 54.3 in August on the back of a pick up in services, the note said. The survey also showed that both input prices (54.3 compared to 53.5 in August) and prices charged (54 compared to 53.3 in August) rose at a faster pace. "Panelists said higher fuel prices, labour costs and taxes drove inflation up," it said.
What these finds imply, according to HSBC, are services continue to trend up, visibly diverging from manufacturing where growth is restrained by the lagged impact of monetary policy, weak global economic backdrop, and slow progress on structural reforms in recent years. "The rise in services is likely led by domestic demand given the weak global economic backdrop. A buoyant rural sector could be adding to the resilience of the services sector," the note added. Looking ahead, HSBC believes growth in services should continue to remain supported by domestic demand and the positive sentiment effects from the recent improvement in policy reform momentum. "However, elevated inflation will dampen the growth in spending power," it said.
Cabinet clears Companies Bill, amendments to Competition Act
New Delhi: The Cabinet on Thursday gave its nod to the Companies Bill 2011 and amendments to the Competition Act 2002. India Inc has been awaiting this move for some time.
Putting to rest all concerns on whether bank mergers will be out of the Competition Act ambit, Finance Minister P. Chidambaram told newspersons that the Act governs all sectors. But, banks and insurance companies that have got approvals for mandated/forced mergers have been exempted from the purview of the Act.
The proposal after its initial consideration in April, 2012 was referred to a Group of Ministers to examine in detail, with particular reference to jurisdiction of sectoral regulators on Competition related issues.
“Major amendments approved by the Cabinet relate to changing the definition of “turnover”, “Group”, reducing the overall time limit of finalisation of combinations from 210 days to 180 days and insertion of a new Section 5A enabling the Central Government to lay down, in consultation with the Competition Commission of India, different thresholds for any class or classes of enterprises for the purpose of examining acquisitions, mergers and amalgamations by the Commission.
Companies Bill
After nearly two decades of efforts to revamp the exiting Companies Act 1956, the Companies Bill 2011 aimed to give a modern legislation for growth and regulation of corporate sector was approved with certain modifications. The Bill gives a clearer direction to the role of auditor, corporate social responsibility, inter-corporate loans and makes whole-time directors more accountable and defines private placements, among others.
Once the Bill becomes a law, corporates will be expected to give valid reasons if they are not spending the amount earmarked for CSR activities. However, the Bill does not make it mandatory.
What may seem relevant today, the Bill has modified provisions for audit of Government companies by Comptroller and Auditor General of India (C&AG). The modification has been made to enable C&AG perform such audit more effectively.
The provisions relating to restrictions on non-audit services have been modified in the Bill to ensure that such restrictions shall not apply to associate companies. It also gives a transitional period for complying with such provisions.
Putting to rest all concerns on whether bank mergers will be out of the Competition Act ambit, Finance Minister P. Chidambaram told newspersons that the Act governs all sectors. But, banks and insurance companies that have got approvals for mandated/forced mergers have been exempted from the purview of the Act.
The proposal after its initial consideration in April, 2012 was referred to a Group of Ministers to examine in detail, with particular reference to jurisdiction of sectoral regulators on Competition related issues.
“Major amendments approved by the Cabinet relate to changing the definition of “turnover”, “Group”, reducing the overall time limit of finalisation of combinations from 210 days to 180 days and insertion of a new Section 5A enabling the Central Government to lay down, in consultation with the Competition Commission of India, different thresholds for any class or classes of enterprises for the purpose of examining acquisitions, mergers and amalgamations by the Commission.
Companies Bill
After nearly two decades of efforts to revamp the exiting Companies Act 1956, the Companies Bill 2011 aimed to give a modern legislation for growth and regulation of corporate sector was approved with certain modifications. The Bill gives a clearer direction to the role of auditor, corporate social responsibility, inter-corporate loans and makes whole-time directors more accountable and defines private placements, among others.
Once the Bill becomes a law, corporates will be expected to give valid reasons if they are not spending the amount earmarked for CSR activities. However, the Bill does not make it mandatory.
What may seem relevant today, the Bill has modified provisions for audit of Government companies by Comptroller and Auditor General of India (C&AG). The modification has been made to enable C&AG perform such audit more effectively.
The provisions relating to restrictions on non-audit services have been modified in the Bill to ensure that such restrictions shall not apply to associate companies. It also gives a transitional period for complying with such provisions.
Thursday, October 4, 2012
Intel Capital to invest $40 million in technology companies
Mumbai: Intel Capital, Intel Corporation’s global investment and M&A organisation, said it will invest up to $40 million in 10 innovative technology companies.
The investments will go into companies such as Hungama.com, FocalTech, Jelli, LIFO Interactive, NewAer, PagPop, cloud services provider Tier 3, 3-D game developer Transmension, and mobile advertising provider UUCun. Financial details of each investment were not disclosed.
“Business deals happen when Intel Capital brings together our vast global network with our portfolio company innovators,” said Arvind Sodhani, President of Intel Capital.
Indian company Hungama.com, which received an undisclosed sum from Intel Capital, is India’s leading digital entertainment company that launched India’s first and largest on-demand digital entertainment storefront.
Sudheer Kuppam, Managing Director at Intel Capital, APAC and Japan, said of the investment, “Hungama.com is another great example of an innovative Indian company. It has become India’s largest on-demand Digital Entertainment storefront, which serves audio, video and imagery to South Asians across the world. We’ve been aware of Hungama.com’s success for some time, and we’re excited about working with the company to develop the brand and build upon the success it has found in India by taking the venture global.”
Intel Capital has been investing in India since 1998. Since then, Intel Capital has invested over $300 million in more than 80 companies across 10 cities in India.
The investments will go into companies such as Hungama.com, FocalTech, Jelli, LIFO Interactive, NewAer, PagPop, cloud services provider Tier 3, 3-D game developer Transmension, and mobile advertising provider UUCun. Financial details of each investment were not disclosed.
“Business deals happen when Intel Capital brings together our vast global network with our portfolio company innovators,” said Arvind Sodhani, President of Intel Capital.
Indian company Hungama.com, which received an undisclosed sum from Intel Capital, is India’s leading digital entertainment company that launched India’s first and largest on-demand digital entertainment storefront.
Sudheer Kuppam, Managing Director at Intel Capital, APAC and Japan, said of the investment, “Hungama.com is another great example of an innovative Indian company. It has become India’s largest on-demand Digital Entertainment storefront, which serves audio, video and imagery to South Asians across the world. We’ve been aware of Hungama.com’s success for some time, and we’re excited about working with the company to develop the brand and build upon the success it has found in India by taking the venture global.”
Intel Capital has been investing in India since 1998. Since then, Intel Capital has invested over $300 million in more than 80 companies across 10 cities in India.
GSPC to buy BG Group stake in Gujarat Gas for Rs 2,464 cr
Ahmedabad: Barely a week after the British Gas’s (BG’s) stake in Gujarat Gas Company Limited (GGCL) was put on the block, the Gujarat State Petroleum Corporation Ltd (GSPC) has signed a definitive agreement to pick up the entire 65.12 per cent stake for Rs 2,463.8 crore at Rs 295 a share.
Initially, a consortium of PSUs, including GSPC, Oil and Natural Gas Corp Ltd (ONGC) and Bharat Petroleum Corporation Ltd (BPCL), had bid for the controlling stake in the BG group's city gas distribution company. However, according to a person close to the development, GSPC later decided to go solo through its fully owned company, Gujarat Distribution Networks Ltd (GDNL).
BG’s sale of Gujarat Gas marks the beginning of its exit from the city gas distribution business. The company has a strategic holding in Mahanagar Gas Ltd, the city gas distributor in Mumbai.
The deal is scheduled to be completed during the first half of 2013, BG said in a statement. "With this announcement, we have non-core asset sales agreements in place that will release some $4 billion from our balance sheet. We have made outstanding progress since announcing our two-year $5 billion release programme only eight months ago, and we remain focused on the successful delivery of our growth projects," said BG Group CEO Sir Frank Chapman.
GGCL's stake sale comes at a discount to BG, whose asking price for its stake was Rs 3,500 crore. GGCL's current market capitalisation stands at Rs 4,318 crore. GGCL shares closed at Rs 336.70 on the Bombay Stock Exchange on Wednesday.
The deal is subject to regulatory approvals. It needs to meet the takeover code of stock markets regulator Sebi and get approvals from the Competition Commission of India and the Reserve Bank of India.
"We are pleased to announce this acquisition that enhances GSPC group’s presence in the state of Gujarat. The acquisition is in the long term interests of the industrial and retail customers of Gujarat," Tapan Ray, managing director of the GSPC Group said in a statement.
The acquisition bears a significant strategic importance and will add significant customer base to GSPC’s existing business in Gujarat, the statement said. Besides, the acquisition is consistent with the stated strategic objective of expanding the company’s presence in upstream and downstream segments of the energy value chain and realising the vision of developing Gujarat as natural gas driven economy, the statement added.
GSPC Group is one of the leading oil and gas exploration, development and production companies in India. It is also one of the largest gas trading companies of the country. The Group has a significant presence in the gas transmission and gas distribution businesses. The government of Gujarat is a majority shareholder in the Group.
Initially, a consortium of PSUs, including GSPC, Oil and Natural Gas Corp Ltd (ONGC) and Bharat Petroleum Corporation Ltd (BPCL), had bid for the controlling stake in the BG group's city gas distribution company. However, according to a person close to the development, GSPC later decided to go solo through its fully owned company, Gujarat Distribution Networks Ltd (GDNL).
BG’s sale of Gujarat Gas marks the beginning of its exit from the city gas distribution business. The company has a strategic holding in Mahanagar Gas Ltd, the city gas distributor in Mumbai.
The deal is scheduled to be completed during the first half of 2013, BG said in a statement. "With this announcement, we have non-core asset sales agreements in place that will release some $4 billion from our balance sheet. We have made outstanding progress since announcing our two-year $5 billion release programme only eight months ago, and we remain focused on the successful delivery of our growth projects," said BG Group CEO Sir Frank Chapman.
GGCL's stake sale comes at a discount to BG, whose asking price for its stake was Rs 3,500 crore. GGCL's current market capitalisation stands at Rs 4,318 crore. GGCL shares closed at Rs 336.70 on the Bombay Stock Exchange on Wednesday.
The deal is subject to regulatory approvals. It needs to meet the takeover code of stock markets regulator Sebi and get approvals from the Competition Commission of India and the Reserve Bank of India.
"We are pleased to announce this acquisition that enhances GSPC group’s presence in the state of Gujarat. The acquisition is in the long term interests of the industrial and retail customers of Gujarat," Tapan Ray, managing director of the GSPC Group said in a statement.
The acquisition bears a significant strategic importance and will add significant customer base to GSPC’s existing business in Gujarat, the statement said. Besides, the acquisition is consistent with the stated strategic objective of expanding the company’s presence in upstream and downstream segments of the energy value chain and realising the vision of developing Gujarat as natural gas driven economy, the statement added.
GSPC Group is one of the leading oil and gas exploration, development and production companies in India. It is also one of the largest gas trading companies of the country. The Group has a significant presence in the gas transmission and gas distribution businesses. The government of Gujarat is a majority shareholder in the Group.
Reliance signs crude oil supply deal with Venezuelan firm
Mumbai: Reliance Industries Ltd and Venezuelan state oil company Petroleos de Venezuela, SA have signed a 15-year heavy crude oil supply deal. The Indian petrochemical major also inked a memorandum of understanding (MoU) with Petroleos to further develop Venezuelan heavy oil fields.
RIL is estimated to invest around $8 billion to develop the oil fields. The company refused to comment on the investment. RIL is also looking to invest close to $20 billion from 2012-13 till 2015-16 on sectors including petrochemicals and refining.
The Venezuelan company is to supply between 300,000 and 400,000 barrels a day of Venezuelan heavy crude oil to Reliance’s two refineries in Jamnagar, under the crude oil supply contract.
As per the MoU, RIL is to explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt. RIL will also co-operate with Petroleos by providing technical assistance in the areas of offshore upstream, refining and other downstream projects.
In a statement, Rafael Ramirez, the People’s Minister for Petroleum and Mining and President of Petroleos, said the first official document signed with the Indian company was an MoU that would allow Reliance to participate in crude oil exploration and production activities in the Ayacucho and Boyaca four blocks in the FPO.
“This agreement ensures the sale of our oil to countries that have a sustainable growth,'' Ramirez stressed. He added that Venezuela is currently sending 270,000 bpd to the Asian country, while India’s oil consumption currently amounts to 4.2 million barrels of crude oil per day.
RIL is estimated to invest around $8 billion to develop the oil fields. The company refused to comment on the investment. RIL is also looking to invest close to $20 billion from 2012-13 till 2015-16 on sectors including petrochemicals and refining.
The Venezuelan company is to supply between 300,000 and 400,000 barrels a day of Venezuelan heavy crude oil to Reliance’s two refineries in Jamnagar, under the crude oil supply contract.
As per the MoU, RIL is to explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt. RIL will also co-operate with Petroleos by providing technical assistance in the areas of offshore upstream, refining and other downstream projects.
In a statement, Rafael Ramirez, the People’s Minister for Petroleum and Mining and President of Petroleos, said the first official document signed with the Indian company was an MoU that would allow Reliance to participate in crude oil exploration and production activities in the Ayacucho and Boyaca four blocks in the FPO.
“This agreement ensures the sale of our oil to countries that have a sustainable growth,'' Ramirez stressed. He added that Venezuela is currently sending 270,000 bpd to the Asian country, while India’s oil consumption currently amounts to 4.2 million barrels of crude oil per day.
Takeda, Advinus in drug discovery pact
Mumbai: Japan-headquartered Takeda Pharmaceutical and Advinus Therapeutics, privately held drug major promoted by the Tata Group, have entered into an agreement to initiate a three-year discovery collaboration. The alliance will focus on novel targets for therapeutic areas including inflammation, central nervous system and metabolic diseases.
Advinus will be responsible for leading the programmes to create optimal investigational new drug (IND) ready compounds for pre-defined targets.
It Advinus will receive research funding of $36 million, $9 million in milestones leading to candidate selection, and is eligible to receive future clinical and regulatory milestone payments of up to $45 million per product, plus royalties on product sales worldwide. Under the terms of the agreement, Takeda is to receive worldwide commercial rights to drug candidates emerging from this alliance.
Advinus will be responsible for leading the programmes to create optimal investigational new drug (IND) ready compounds for pre-defined targets.
It Advinus will receive research funding of $36 million, $9 million in milestones leading to candidate selection, and is eligible to receive future clinical and regulatory milestone payments of up to $45 million per product, plus royalties on product sales worldwide. Under the terms of the agreement, Takeda is to receive worldwide commercial rights to drug candidates emerging from this alliance.
India and Austria Sign Agreement on Technology Cooperation in the Shipping and Ports Infrastructure Sector
New Delhi: A Memorandum of Understanding (MoU) on Technology Cooperation in the Shipping and Ports Infrastructure was signed today between India and Austria. The MoU was signed by Shri G. K. Vasan, Minister of Shipping with Mrs. Doris Bures, Austrian Federal Minister for Transport, Innovation & Technology in New Delhi.
While welcoming the Austrian Minister, Shri Vasan recalled that traditionally, India – Austria relations have been warm and friendly. There has been regular exchange of high level visits between the two countries during which the special emphasis is put on strengthening economic and commercial cooperation and scientific cooperation.
Austria derives its importance by virtue of its active role in international organizations. With its central location in the heart of Europe and historical linkages and legacy with the countries of the region, Austria is also well placed to serve as a gateway to emerging market economies in Central & East Europe. Cutting edge technology is Austria's forte in several niche areas of interest to us, particularly in infrastructure.
Shipping continues to dominate as the world’s most efficient means of transportation and it is the endeavour of the Ministry of Shipping to take necessary initiatives to recognize, reward and promote quality whenever and wherever it is found within the industry.
New technologies for implementation of International Ship & Port Security code, use of radio frequency identification in logistics and transport planning and optical character recognition in terminals to speed up the processing of containers in and out are the areas where Austrian expertise could be utilized in India.
Realtime Kinematics (RTK) measurements of tides and currents for facilitations of berth to berth navigation in Gulf of Kutch and Gulf of Khambat could be developed with Austrian expertise.
Since more than 300km of Danube river in Austria is used for navigation purpose with a well-developed and regulated inland waterway system their experience and expertise in the field of Inland Water Transport would be beneficial to the development of Inland Water Transport in India.
The Minister also hoped that signing of the MoU will pave way for sharing appropriate know-how, scientific knowledge and research and development capabilities between the two countries. It will enable the Indian organizations in the Ports and Shipping Sectors to acquire latest knowledge and technology etc. from Austria.
While welcoming the Austrian Minister, Shri Vasan recalled that traditionally, India – Austria relations have been warm and friendly. There has been regular exchange of high level visits between the two countries during which the special emphasis is put on strengthening economic and commercial cooperation and scientific cooperation.
Austria derives its importance by virtue of its active role in international organizations. With its central location in the heart of Europe and historical linkages and legacy with the countries of the region, Austria is also well placed to serve as a gateway to emerging market economies in Central & East Europe. Cutting edge technology is Austria's forte in several niche areas of interest to us, particularly in infrastructure.
Shipping continues to dominate as the world’s most efficient means of transportation and it is the endeavour of the Ministry of Shipping to take necessary initiatives to recognize, reward and promote quality whenever and wherever it is found within the industry.
New technologies for implementation of International Ship & Port Security code, use of radio frequency identification in logistics and transport planning and optical character recognition in terminals to speed up the processing of containers in and out are the areas where Austrian expertise could be utilized in India.
Realtime Kinematics (RTK) measurements of tides and currents for facilitations of berth to berth navigation in Gulf of Kutch and Gulf of Khambat could be developed with Austrian expertise.
Since more than 300km of Danube river in Austria is used for navigation purpose with a well-developed and regulated inland waterway system their experience and expertise in the field of Inland Water Transport would be beneficial to the development of Inland Water Transport in India.
The Minister also hoped that signing of the MoU will pave way for sharing appropriate know-how, scientific knowledge and research and development capabilities between the two countries. It will enable the Indian organizations in the Ports and Shipping Sectors to acquire latest knowledge and technology etc. from Austria.
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