Remittances flow to India expected to reach US$ 70 billion in 2012: World Bank

New Delhi: India is expected to receive remittances worth US$ 70 billion in 2012, emerging on top of the list of developing countries which are expected to receive a total of US$ 406 billion remittances in 2012, according to the World Bank.

China will stand second with US$ 66 billion, followed by Mexico and Philippines with US$ 24 billion each, as per the latest report by the Bank.

Nigeria (US$ 21 billion), Egypt (US$ 18 billion), US$ 14 billion each for Pakistan and Bangladesh, followed by Vietnam (US$ 9 billion) and Lebanon (US$ 7 billion) are the other large recipients of remittances.

The total worldwide remittances—including high income countries—is expected to reach US$ 534 billion in 2015 and including those to high-income countries, are projected to grow to US$ 685 billion in 2015.

The true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger, the report highlighted.

“Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance,” as per the Bank.

Zuari Agro to invest Rs 4,400 cr in UAE fertiliser facility

Mumbai: Zuari Agro Chemicals has signed an agreement with Ras Al Khaimah Maritime City to set up an integrated one million tonne a year diammonium phosphate manufacturing facility in the UAE.

The project, being developed with an investment of $800 million (about Rs 4,400 crore), includes a power plant, private jetty and desalination plant. It is planned to be built over 400 acres in the free trade zone of RAK Maritime City.

Suresh Krishnan, Managing Director, Zuari Agro, said the project would play a key role in the backward integration programme and help tap the fast growing global fertiliser market.

Part of the $3-billion Adventz Group, Zuari has an annual installed capacity of 946,000 tonnes of fertiliser in Goa. The manufacturing facility comprises four separate plants, namely ammonia, urea, NPK A and NPK B. The plants employ the latest in pipe-reactor technology and are based on the slurry granulation process.

The project in the UAE will further strengthen the company’s manufacturing foothold outside India. Last year, the company formed a joint venture with Mitsubishi Corporation, Japan, to form a new rock phosphate manufacturing company, MCA Phosphates Pte Ltd. Since then, MCA Phosphates acquired 30 per cent equity stake in Fosfatos del Pacifico of Peru for $46.12 million.

Zuari Maroc Phosphates, a joint venture with Maroc Phosphore S.A., Morocco, acquired Paradeep Phosphates (PPL). At present, the company holds 80 per cent of the equity stake in PPL.

PPL manufactures and markets complex phosphatic fertilisers and intermediary products such as phosphoric acid and sulphuric acid, which are crucial in the manufacture of phosphatic fertilisers.

It has a plant located in the port town of Paradeep in Odisha, with an installed annual capacity of 720,000 tonnes of DAP and other phosphatic fertilisers. The off-site facilities comprise a 3.4-km closed conveyor from port to plant site, a railway siding, raw material storage yards and a 3.1-km long pipe rack.

VayuGrid inks MoU with Ethiopia for biofuel park

Bengaluru: VayuGrid, a biofuel supply chain company based in Bangalore, has signed a memorandum of understanding to create a biofuel cluster for its VayuSap — high-yield Pongamia — in Ethiopia.

The company said the cluster will create a $2.5-million biofuel investment opportunity and is part of a larger government plan to develop a biofuel park in Ethiopia. Starting with a 2,000 acre, the long-term goal is to create a cluster of 100,000 acres under a collaborative model.

The biofuel park is a critical step to reduce the country’s commitment of 87 per cent of free cash on imported crude while at the same time creating local job opportunities and an ecosystem of value-added businesses.

Ethiopia was chosen strategically based on the economics and agriculture. Its large land bank of arid and unproductive land lends itself perfectly to creating a green energy supply base for local and global markets.

Phase 1 is a 2,000-acre footprint under a collaborative model involving the participation of a local partner bringing in land and labour, investors putting the capital and VayuGrid providing the IP and downstream contracts, thereby creating a sustainable and replicable business model.

“VayuGrid is bringing together local and global businesses that are dependent on crude and looking for ways to hedge against currency fluctuations while ensuring a predictable supply of green energy,” said Doug Peterson, CEO, VayuGrid.

“Our biofuel clusters ensure a sustainable biofuel supply for downstream markets and high returns for governments, land owners and investors,” he added.

Private equity investments up 4% in Q3: PwC study

Mumbai: Private equity firms invested $2.5 billion in the country across 97 deals in the third quarter of this year.

The quarterly PE investments increased four per cent in terms of value, while deal volume fell by 20 per cent ($2.4 billion from 121 deals in Q3 of 2011).

With 45 deals worth $1.3 billion in Q3 of 2012, the IT and ITeS sector maintained its position as the leader in both value as well as volume.

The findings are part of the third PwC MoneyTree India report.

Sanjeev Krishan, Leader, Private Equity, PwC, said, “With the year having entered its last lap, it is quite unlikely that PE investments in 2012 will be on par with those in 2011.

“However, as we approach the year-end, the sentiment seems to be reviving and this augurs well for 2013.”

The opening up of the multi-brand retail sector to foreign investment is expected to generate investments in due course, and the requirement for 50 per cent investment in back-end operations and 30 per cent procurement from SMEs is set to boost private equity investments in the logistics, agri/food and consumer goods sectors in the times to come, he added.

The IT and ITeS sector attracted investments worth $1.3 billion from 45 deals, constituting more than 50 per cent of the total investment value and nearly 47 per cent of the total number of deals in this quarter.

The average deal size for the sector too, has shown an increase from $13 million in Q3 of 2011 to $29 million in this quarter.

In Q3 of 2012, PE exits were worth $1.5 billion from 26 deals compared with $809 million from 25 deals in the same quarter last year.

Specialist coffee chains in India expected to double to 4,000 by 2015, report says

Mumbai: Riding on a newfound coffee culture and specialist coffee chains opening outlets in India, consumption of coffee is expected to get a major boost. According to a new report by Rabobank, specialist coffee shop chains, which target the out-of-home consumption of urban youth, are projected to double to 4,000 in numbers by 2015 (CAGR of 21%).

At present, there are around 2,100 specialist coffee shops in India. Given the multiple international coffee shop chains trying to expand their base in India, consumers are likely to have even more options within the next three years, the report said.

This growth is a result of favourable demographics, rising income levels, rise of mid-sized cities and high population density. However, high real estate costs, manpower attrition and difficulties in managing the supply chain will continue to be the key challenges.

Sourcing coffee beans, the report said, is not the key barrier for specialist coffee chains, with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. For example, the cost of coffee beans in a 'Cappuccino' is about 8% of the sale price. The report said to be successful, operational efficiency (e.g. managing rent and manpower costs) is more important than focusing solely on raw material costs.

The impressive growth expected of specialist coffee chains in India offers numerous opportunities for both local and international players, provided that they can overcome inherent obstacles,'' said Nitin Kalani, beverage analyst at Rabobank International.

For a burgeoning segment of the Indian population, coffee chains are also offering a new snacking/leisure experience, which is similar to that in developed markets. The opportunities for coffee chain growth arise from the favourable demographics with low per capita consumption and increasing income levels, the rise of mid-sized cities and a high population density with its associated potential for the expansion of the coffee shop network.

The report said although specialist coffee chains' contribution to India's total coffee consumption by volume may not be significant, but they have added more visibility to the coffee culture.

However, India remains a tea drinking country with sales of the traditional beverage still larger than that of coffee.

New major Indo-Nepal power transmission line agreed upon by both countries

Siliguri: The handshaking gets stronger. India, with its high power demand in one side and Nepal in the other end with high power potential have come closer with the recently agreed planning for a new major trans-border 400 KVA power transmission line that can handle 1200MW power.

The other and upcoming major Indo-Nepal power transmission line is excepted to become operational by 2015 between Dhalkebar in Nepal and Muzaffarpur in India.

According to Mr. H Koirala, Secretary, Energy Department of Nepal, a new cross border transmission line will be set up from west Nepal to India. After having the issue discussed with Indian authority through Nepal's External Affairs Ministry, both the countries have come to a final agreement on the matter in recently concluded meeting of Energy Group under the South Asian Sub-Regional Cooperation.

As per the feasibility study, the new transmission lineis going to be a 125km long one between Butwal in West Nepal and Gorakhpur in the state of UP in India. Though initially planned to be a 132KV one, it was further upgraded to 400KV. As estimated the line needs a financial support of around INR 300 Crore.

More than five big hydropower projects with a collective capacity of around 20,000 MW are under feasibility study in West Nepal at present. Nepal cannot consume the output of those. On the other side, export of the surplus power, generated out of these projects with renewable source of the country to India, can get the financially crunched Nepal into a more comfortable situation.

India had always been interested in importing power from Nepal. "We are keen on harvesting Nepal's untapped Hydropower. A proper handshaking between Nepal and India in power sector can bring in significant benefits," said Indian Union Home Minister Mr. S K Shinde told ET earlier during his tenure as Union Power minister.

FC Barcelona to start FCBEscola India Clinics from December

New Delhi: Football club FC Barcelona plans to set up training clubs in the country, making it the first foreign club to do so, a press statement said. The FCB clinics will start mid-December. "With six FCBEscola camps completed across the country, the clinics will be the honing ground for serious footballers to qualify for the academy. The coming up of the clinics and academy will pave way for creating footballers of tomorrow," the statement said.

Anu Jain, director, Conscient Football said: "We will help in creating footballers whose skill and talent will be at par with any top international football playing nation." The clinics will be conducted by Antonio Claveria, technical director - FCBEscola India. The training will be on the Barca module and entrants to the academy will be handpicked. Conscient Football is a grassroots development organisation for football in the country and official partner of FCBarcelona.

Jain added: "Marketing of football in India is still at a nascent stage. Though the market is pegged around US$ 410 million, people are apprehensive about investing in football. We need to develop infrastructure for the sport." The last FIFA World Cup saw growth of 35% viewership in India, most of it from the youth.

Biocon gets US firm on board for trials of oral insulin

Bengaluru: Publicly-held biotechnology major Biocon Ltd on Friday announced it had entered into an agreement with the US-based $21-billion Bristol-Myers Squibb (BMS) to further develop its IN-105, an oral insulin product candidate.

Biocon will use BMS’ expertise in clinical trials and get help in redesigning Phase-II trials of the blockbuster drug. Biocon has been working on this drug since 2004 and has so far spent close to $20 million. It had started the programme by partnering US-based Nobex, but later taken control as the latter declared bankruptcy in late 2005.

BMS has a strong presence in the diabetes segment, but in the space of drugs that enable delay in insulin intake. As the partnership goes further, it will possibly mark its entry into the insulin space.

Oral insulin is a drug that has been elusive for many players globally. Only a handful of global majors, including Novo Nordisk, are working in this space. When this product comes into the market , it will bring about a big change, not only to the companies but also the millions of diabetics who have to go through the pain of injection pricks very frequently.

“While there are difficulties in developing an oral insulin, the principle aspect is that insulin is a difficult drug to ingest orally. It is a protein that degrades in the stomach and small intestine. This makes it difficult to design oral delivery. So, companies have to work on mechanisms on how to protect this protein in the human system until it starts to work,” an industry analyst detailed.

Biocon, too, had stumbled on its trials in early 2011, when the initial data analysis showed IN-105 did not meet its primary end point of lowering the average level of blood sugar by 0.7 per cent.

Under its agreement with Biocon, BMS will have the right to exercise an option to obtain an exclusive worldwide licence to the programme. Biocon will conduct clinical studies to further characterise IN-105’s clinical profile according to a pre-agreed development programme up to the completion of Phase II. “BMS will invest a substantial majority in our Phase-II trials, while there will be some contribution from us as well,” Biocon CMD Kiran Mazumdar-Shaw said. Industry analysts indicated Phase II trials in such scenarios would cost around $15 million.

The Phase-II trials will be spread over two years and there will subsequently be Phase-III trials for around three years, during which there will be pivotal and multiple tests.

If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase-II trial, BMS will assume full responsibility for the programme, including all development and commercialisation activities outside India.

Biocon will receive a licence fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India.

L&T Hyderabad Metro awards contracts to Thales

Hyderabad: L&T Hyderabad Metro Ltd has awarded signalling and train control contracts to Thales Canada & Thales India and a communications system deal to Thales Portugal. The €13-billion defence, aerospace and transport major Thales has outbid Siemens and Bombardier, which were also in the fray.

V.B. Gadgil, Chief Executive and Managing Director, LTMRHL, said, “The Hyderabad metro project will be first in the country to run on a communication-based train control system. Our endeavour is to bring the best of international players in metro rail technology to make the project world-class.”

Addressing a press conference along with N.V.S. Reddy, Managing Director, Hyderabad Metro Rail, he said: “L&T is committed to completing the project ahead of July 2017. The 72-km elevated metro rail project will be executed in six phases and we will commence operations once some of these phases are completed.”

Reliable system
“The advanced communication system deployed in several projects across the world will provide a secure and reliable communication system. It will have the capability to run one train every 90 seconds, each side. Each train, with three coaches initially, can take about 1,000 people and with six coaches 2,000 people,” Reddy explained.

Gadgil said L&T has thus far invested Rs 850 crore on the project. Recently, bankers have re-appraised the debt component of the project, which achieved financial closure last year.

Of the Rs 16,500-crore project, about Rs 2,000 crore is being deployed by the Government for facilitation work.

The L&T team indicated that the complex viaduct erection work will commence shortly.

Other Contracts
Gadgil said three other contracts will be finalised by December-end. These include an automatic fare collection facility, contract for supply and erection of elevators at entry and exit points of stations and workshop equipment.

Designs for about 18.5 million sq. ft of transit-oriented development are being assessed. This was taken up after a detailed study, Gadgil said.

Reddy said most of the land acquisition has been concluded and was confident that the remaining part would be completed as work progresses. He said efforts have been made to ensure no heritage or religious structure is impacted by the project.

JLR, Chery start work on China plant

Pune: Jaguar Land Rover, a wholly-owned subsidiary of Tata Motors, and Chinese car maker Chery Automobile Company Ltd, have received approval to set up a new manufacturing facility in China. The equal partnership, to be called Chery Jaguar Land Rover Automotive Company Ltd, will manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.

JLR and Chery will accelerate plans to build the plant in Changshu, near Shanghai, as part of a 10.9-billion yuam (RMB) investment that will include a new research and development centre and an engine facility for production of fuel-efficient engines.

A Reuters report said that Jaguar Land Rover and Chery Automobile had laid the foundation stone for a new car factory in Changshu, China, near Shanghai. The two companies plan to complete work on the facility in 2014.

The project includes creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including their marketing and distribution.

The partnership follows the rapid expansion of marquee British brands Jaguar and Land Rover in China, where sales rose 80 per cent in the first 10 months of the current calendar year.

In 2011, Jaguar Land Rover sales jumped over 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.

Chery is the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, with 15 years’ experience in the automobile industry.

In 2005, sales in China accounted for 1 per cent of combined Jaguar and Land Rover sales. It is now one of Jaguar Land Rover’s main markets and is still growing.