New Delhi: The Minister of New and Renewable Energy, DR. Farooq Abdullah informed Rajya Sabha today that in-Principle, approval has been given to 54 cities for developing as Solar Cities.
The draft Master Plans have been prepared for 28 cities, out of which 8 Master Plans have been approved by his Ministry for implementation. So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released. The minister further informed that the criteria set by the Ministry for the identification of cities include a city population between 50,000 to 50 lakh (with relaxation given to special category States including North-East States), initiatives and regulatory measures already taken along with a high level of commitment in promoting energy efficiency and renewable energy.
So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released for utilization by the concerned State Nodal Agencies/ Municipal Corporations.
So far, the Master Plans for 8 cities namely Agra, Moradabad from Uttar Pradesh, Thane &Kalyan-Dombivli from Maharashtra, Indore from Madhya Pradesh, Kohima from Nagaland, Aizawl from Mizoramand Chandigarh have been finalized and the development of projects is in progress.
Success in my Habit
Friday, December 21, 2012
India and Malaysia Agrees to Strengthen, Cooperation in Renewable Energies
New Delhi: The Minister of New and Renewable Energy, DR. Farooq Abdullah informed Rajya Sabha today that India and Malaysia have agreed to strengthen, promote cooperation in renewable energies between the two countries and to take necessary steps to encourage their development for mutual benefits.
A Memorandum of Understanding (MoU) in the field of Renewable Energy was signed between the Ministry of New and Renewable Energy, Government of India and the Ministry of Energy, Green Technology and Water, Government of Malaysia on 7th November, 2012 in New Delhi. The two countries intend to form a Joint Working Group in order to coordinate in renewable energy through joint research or technical projects on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technological information and data, organization of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis.
A Memorandum of Understanding (MoU) in the field of Renewable Energy was signed between the Ministry of New and Renewable Energy, Government of India and the Ministry of Energy, Green Technology and Water, Government of Malaysia on 7th November, 2012 in New Delhi. The two countries intend to form a Joint Working Group in order to coordinate in renewable energy through joint research or technical projects on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technological information and data, organization of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis.
Monday, December 17, 2012
Fortis Intl to sell Dental Corp stake to UK’s Bupa for A$270 million
New Delhi: Fortis Healthcare International, a subsidiary of Fortis Healthcare, is to sell its 64 per cent stake in Dental Corporation Holdings Ltd, Australia, to UK’s healthcare major, Bupa.
The deal, which is expected to be completed in March, was made for 270 million Australian dollars (around Rs 1,500 crore). Fortis had bought the shares of DCH in two separate deals, worth a total of about A$200.
The Executive Chairman and Executive Vice-Chairman of Fortis Healthcare, Malvinder Singh and Shivinder Singh, said in a release that the move is “good” for Fortis.
“We are decisive in our response and bold in our actions,” the brothers said, and added that the decision will help the company to consolidate its presence as one of the fastest growing healthcare companies in the region.
Fortis bought 25.6 per cent shares of DCH in January 2011. The company said it had added “considerable value” to the business, growing its dental practices from 140 to 190 in Australia and New Zealand.
“The model however has remained confined to the two countries and in spite of exploration and backing has found limited acceptance in other Fortis geographies, as originally envisaged,” the release added.
Fortis Healthcare Ltd’s businesses span diagnostics, primary care, day-care specialty centres, and hospitals. Apart from India, it has presence in Australia, Canada, the UAE, Hong Kong, Mauritius, Nepal, New Zealand, Singapore, Sri Lanka and Vietnam.
The deal, which is expected to be completed in March, was made for 270 million Australian dollars (around Rs 1,500 crore). Fortis had bought the shares of DCH in two separate deals, worth a total of about A$200.
The Executive Chairman and Executive Vice-Chairman of Fortis Healthcare, Malvinder Singh and Shivinder Singh, said in a release that the move is “good” for Fortis.
“We are decisive in our response and bold in our actions,” the brothers said, and added that the decision will help the company to consolidate its presence as one of the fastest growing healthcare companies in the region.
Fortis bought 25.6 per cent shares of DCH in January 2011. The company said it had added “considerable value” to the business, growing its dental practices from 140 to 190 in Australia and New Zealand.
“The model however has remained confined to the two countries and in spite of exploration and backing has found limited acceptance in other Fortis geographies, as originally envisaged,” the release added.
Fortis Healthcare Ltd’s businesses span diagnostics, primary care, day-care specialty centres, and hospitals. Apart from India, it has presence in Australia, Canada, the UAE, Hong Kong, Mauritius, Nepal, New Zealand, Singapore, Sri Lanka and Vietnam.
Jetking Infotrain to expand into overseas market
Hyderabad: Computer education firm Jetking Infotrain is making a foray into the overseas computer hardware training market, with plans to open centres in Sri Lanka, Bangladesh, Nepal and Nigeria next fiscal.
The institute, which has 100 centres across India, a majority of which is franchise-run, currently has a small presence in Vietnam with two centres.
“We will start with a 500-capacity centre each in Sri Lanka, Bangladesh and Nepal, while the Nigerian outlet will have a 1,000-student capacity. We will be opening these centres through tie-ups with local partners,” Suresh G. Bharwani, Chairman and Managing Director, told Business Line.
Jetking, which has so far trained six lakh students in India, trains about 30,000 students in different computer hardware and networking fields.
“Last year, 50 per cent of the students had got immediate placements, including in top IT companies, with a minimum entry-level monthly salary of between Rs 10,000 and Rs 15,000,” he said.
The BSE-listed firm is tying up with the National Skill Development Council to implement a five-year programme involving vocational education through 400 centres. The council has agreed to fund about Rs 80 crore for the project.
The institute, which has 100 centres across India, a majority of which is franchise-run, currently has a small presence in Vietnam with two centres.
“We will start with a 500-capacity centre each in Sri Lanka, Bangladesh and Nepal, while the Nigerian outlet will have a 1,000-student capacity. We will be opening these centres through tie-ups with local partners,” Suresh G. Bharwani, Chairman and Managing Director, told Business Line.
Jetking, which has so far trained six lakh students in India, trains about 30,000 students in different computer hardware and networking fields.
“Last year, 50 per cent of the students had got immediate placements, including in top IT companies, with a minimum entry-level monthly salary of between Rs 10,000 and Rs 15,000,” he said.
The BSE-listed firm is tying up with the National Skill Development Council to implement a five-year programme involving vocational education through 400 centres. The council has agreed to fund about Rs 80 crore for the project.
Corporate profits expected to grow at a healthy pace during second half of 2012-13
Chennai: Corporate profit is expected to remain strong at 30.3% for the December quarter and at 15.5% for the March 2013 quarter. "However, the high level of growth achieved in the September quarter will not be sustained.
Corporate profits shot up in the second quarter due to the announcement of the cumulative oil subsidy for the April-September quarter by the government and forex gains made by companies on their short term foreign exchange liabilities consequent to the appreciation of the rupee. Also, the low base of last year made the profit growth look impressive," CMIE ( Centre for Monitoring Indian Economy) said in its November review.
Moving forward, growth in profits is expected to be led by moderation in input prices, reduction in forex losses and announcement of oil subsidies by the government on a regular basis. "Receipt of Rs 20,000 crore oil subsidies, flat crude oil prices and lower forex losses compared to the year-ago quarter are expected to help the petroleum products industry report a 10% growth in profits during the quarter," CMIE said.
And with the manufacturing sector procuring imported raw materials one to two months in advance, the positive impact of the rupee appreciation is expected to be visible on the raw material expenses of manufacturing companies during the third quarter.
Corporate profits shot up in the second quarter due to the announcement of the cumulative oil subsidy for the April-September quarter by the government and forex gains made by companies on their short term foreign exchange liabilities consequent to the appreciation of the rupee. Also, the low base of last year made the profit growth look impressive," CMIE ( Centre for Monitoring Indian Economy) said in its November review.
Moving forward, growth in profits is expected to be led by moderation in input prices, reduction in forex losses and announcement of oil subsidies by the government on a regular basis. "Receipt of Rs 20,000 crore oil subsidies, flat crude oil prices and lower forex losses compared to the year-ago quarter are expected to help the petroleum products industry report a 10% growth in profits during the quarter," CMIE said.
And with the manufacturing sector procuring imported raw materials one to two months in advance, the positive impact of the rupee appreciation is expected to be visible on the raw material expenses of manufacturing companies during the third quarter.
Private equity and M&A deals in November increases by 5 times to $10.1 billion: Grant Thornton India
Mumbai: With the improvement in sentiments in markets, there is a strong wave of value buying in the private equity and mergers and acquisitions part of the markets. In November this, there has been considerable improvement in the total value of private equity and mergers and acquisition deals.
According to a study by Grant Thornton India, the total value of private equity and mergers and acquisitions deals in November increased by five times to US$ 10.1 billion from US$ 1.9 billion in the same month last year.
This is a good sign for investors who have been circumspective about investing in markets. Since, private equity players are one of the early strategic investors, which identify value investments in the markets.
According to the study by the advisory firm, in November this year, in terms of mergers and acquisitions, even though the number of inbound deals-foreign companies or their subsidiaries acquiring Indian businesses, has come down (to 12 deals from 16 deals, year on year), the total value of inbound deals has risen considerably.
The total value of inbound deals trebled to US$2.1 billion in November this year. Interestingly, the number of outbound deals-Indian companies acquiring businesses outside India and their total value, in November this year, showed remarkable improvement in November this year.
In November, the number of outbound deals shot up to 15 deals from 10 and its total value rose to US$6.7 billion from US$1.9 billion in the same month last year.
As regards, private equity deals, the total value of private equity deals in November this year, rose to US$39 billion from US$0.4 billion in November last year, indicating that private equity players are preferring concentrated exposure to their value investments.
In terms of sectors, around 52% of total value of mergers and acquisitions deals came from Oil & Gas sector, followed by Breweries & Distilleries (22%), and Plastics & Chemicals (11%), while the remaining value of the mergers and acquisitions came from Pharma, healthcare & Biotech and Banking and Financial services.
According to a study by Grant Thornton India, the total value of private equity and mergers and acquisitions deals in November increased by five times to US$ 10.1 billion from US$ 1.9 billion in the same month last year.
This is a good sign for investors who have been circumspective about investing in markets. Since, private equity players are one of the early strategic investors, which identify value investments in the markets.
According to the study by the advisory firm, in November this year, in terms of mergers and acquisitions, even though the number of inbound deals-foreign companies or their subsidiaries acquiring Indian businesses, has come down (to 12 deals from 16 deals, year on year), the total value of inbound deals has risen considerably.
The total value of inbound deals trebled to US$2.1 billion in November this year. Interestingly, the number of outbound deals-Indian companies acquiring businesses outside India and their total value, in November this year, showed remarkable improvement in November this year.
In November, the number of outbound deals shot up to 15 deals from 10 and its total value rose to US$6.7 billion from US$1.9 billion in the same month last year.
As regards, private equity deals, the total value of private equity deals in November this year, rose to US$39 billion from US$0.4 billion in November last year, indicating that private equity players are preferring concentrated exposure to their value investments.
In terms of sectors, around 52% of total value of mergers and acquisitions deals came from Oil & Gas sector, followed by Breweries & Distilleries (22%), and Plastics & Chemicals (11%), while the remaining value of the mergers and acquisitions came from Pharma, healthcare & Biotech and Banking and Financial services.
India-Asean pact on services, investments likely early next year: Malaysian Minister
Hyderabad: The India-Asean agreement on services and investments is likely to be concluded by early next year paving the way for further co-operation, according to Mustapa Mohamed, Malaysian Minister for Trade and Industry.
"The talks are at an advanced stage including at Djakarta and we hope the agreement will be concluded early next year. In fact, it was expected to be reached last year," he said.
The Association of South East Asia Nations hope this will open up opportunities and strengthen the earlier agreement signed on trade.
Speaking to newspersons, he hoped that the Malaysia India trade will top $15 billion (US) by 2015, up from $12.5 billion recorded during 2011. About 51 per cent of Malaysian exports comprise manufactured products such as electrical and electronic.
A high-powered Malaysian delegation is on India tour interacting with industries, State and Central Government representatives seeking to further strengthen the trade ties. Malaysia is keen to attract Indian small and medium-sized businesses to locate their bases and expand trade in the region.
He felt that India with a population of about 1.2 billion and ASEAN with 600 million, the opportunities abound.
The Trade Minister said that a Malaysian company has made big inroads into the mono-rail opportunity in India with its first project in Mumbai and two projects in Brazil. It is in talks with several major cities including Kolkata for setting up mono rail networks, he said.
Referring to infrastructure opportunity, he said Malaysia is engaged with development of about 1,000 km of road network in India and is keen to play a role in other infrastructure projects, housing sector and MRO facilities.
Male Issue
Referring to the Male airport issue, he said, "The Malaysian Government would negotiate with the Maldives counterpart on the [Male airport] issue. Being a partner for the airport project with GMR, we have been affected. I believe Governments should respect contracts. However, we hope they (Maldives Government) would compensate us for the loss."
"The talks are at an advanced stage including at Djakarta and we hope the agreement will be concluded early next year. In fact, it was expected to be reached last year," he said.
The Association of South East Asia Nations hope this will open up opportunities and strengthen the earlier agreement signed on trade.
Speaking to newspersons, he hoped that the Malaysia India trade will top $15 billion (US) by 2015, up from $12.5 billion recorded during 2011. About 51 per cent of Malaysian exports comprise manufactured products such as electrical and electronic.
A high-powered Malaysian delegation is on India tour interacting with industries, State and Central Government representatives seeking to further strengthen the trade ties. Malaysia is keen to attract Indian small and medium-sized businesses to locate their bases and expand trade in the region.
He felt that India with a population of about 1.2 billion and ASEAN with 600 million, the opportunities abound.
The Trade Minister said that a Malaysian company has made big inroads into the mono-rail opportunity in India with its first project in Mumbai and two projects in Brazil. It is in talks with several major cities including Kolkata for setting up mono rail networks, he said.
Referring to infrastructure opportunity, he said Malaysia is engaged with development of about 1,000 km of road network in India and is keen to play a role in other infrastructure projects, housing sector and MRO facilities.
Male Issue
Referring to the Male airport issue, he said, "The Malaysian Government would negotiate with the Maldives counterpart on the [Male airport] issue. Being a partner for the airport project with GMR, we have been affected. I believe Governments should respect contracts. However, we hope they (Maldives Government) would compensate us for the loss."
Saturday, December 15, 2012
Hitachi to invest Rs 4,700 cr over 3 years to fortify presence
New Delhi: Japanese major Hitachi plans to invest Rs 4,700 crore in India to set up new manufacturing plants, acquisitions and strengthening collaboration with Indian companies by fiscal 2015.
Hiroaki Nakanishi President Hitachi said, “We expect to nearly triple our consolidated revenues to Rs 200 billion (Rs 20,000 crore) from the current Rs 67 billion (Rs 6,700 crore) by the fiscal year 2015. We will increase our employee strength from about 6,800 to 13,000 in this period.” He said that the company is eyeing acquisitions in social infrastructure and engineering services, but did not give any specific details.
Nakanishi was in India for the company’s first board meeting held outside Japan indicating the importance of the Indian market.
“Slowdown of economy is not only happening in India, it is a global issue. We have to manage business between this. We do not change the priority or investment decisions in the current scenario of the Indian economy,” he said though adding that the company is facing challenges such as differences between Union and State Government policies as well as slower pace of growth than the company’s expectations. The company, for instance, had to adjust output of auto components due to the slowdown in vehicle sales.
“We plan to use India as a base for expanding business into Africa and West Asia ,” he added. This will be largely for the construction machinery and the infrastructure systems.
Local production
The company will focus on expanding its businesses for local production for the domestic market through increasing localisation.
It will expand manufacturing and sales of power electronics products made by Hi-Rel Power Electronics and Hitachi NeST Control System besides promoting local production in its construction machinery business. Hitachi’s other plans for expansion include increasing local production of its industrial packaged air-conditioners and maintaining market share in high-end room air conditioners.
The company also plans to start a new auto components factory in Chennai besides automotive powder metal and brake factory in Neemrana.
It plans to strengthen partnership with Indian companies to expand business base in power systems such as expanding booking orders for thermal power generation systems by BGR Turbines and BGR Boilers, expand product line-up in infrastructure systems.
It also plans to accelerate expansion of storage systems and ATM as well as start up telecommunications and network system businesses through alliance with local partners besides manufacturing of electrical equipment and signal equipment for rail cars.
“We also plan to enhance the corporate function of the Hitachi group in India by expanding the R& D centre, strengthen development of research functions along with expansion of business divisions into India and initiate technology marketing research aimed at emerging markets and accelerate penetration of the Hitachi brand,” Nakanishi said.
Hiroaki Nakanishi President Hitachi said, “We expect to nearly triple our consolidated revenues to Rs 200 billion (Rs 20,000 crore) from the current Rs 67 billion (Rs 6,700 crore) by the fiscal year 2015. We will increase our employee strength from about 6,800 to 13,000 in this period.” He said that the company is eyeing acquisitions in social infrastructure and engineering services, but did not give any specific details.
Nakanishi was in India for the company’s first board meeting held outside Japan indicating the importance of the Indian market.
“Slowdown of economy is not only happening in India, it is a global issue. We have to manage business between this. We do not change the priority or investment decisions in the current scenario of the Indian economy,” he said though adding that the company is facing challenges such as differences between Union and State Government policies as well as slower pace of growth than the company’s expectations. The company, for instance, had to adjust output of auto components due to the slowdown in vehicle sales.
“We plan to use India as a base for expanding business into Africa and West Asia ,” he added. This will be largely for the construction machinery and the infrastructure systems.
Local production
The company will focus on expanding its businesses for local production for the domestic market through increasing localisation.
It will expand manufacturing and sales of power electronics products made by Hi-Rel Power Electronics and Hitachi NeST Control System besides promoting local production in its construction machinery business. Hitachi’s other plans for expansion include increasing local production of its industrial packaged air-conditioners and maintaining market share in high-end room air conditioners.
The company also plans to start a new auto components factory in Chennai besides automotive powder metal and brake factory in Neemrana.
It plans to strengthen partnership with Indian companies to expand business base in power systems such as expanding booking orders for thermal power generation systems by BGR Turbines and BGR Boilers, expand product line-up in infrastructure systems.
It also plans to accelerate expansion of storage systems and ATM as well as start up telecommunications and network system businesses through alliance with local partners besides manufacturing of electrical equipment and signal equipment for rail cars.
“We also plan to enhance the corporate function of the Hitachi group in India by expanding the R& D centre, strengthen development of research functions along with expansion of business divisions into India and initiate technology marketing research aimed at emerging markets and accelerate penetration of the Hitachi brand,” Nakanishi said.
Reliance Group, China’s Wanda to form realty JV
New Delhi: The Anil Ambani-led Reliance Group and China’s leading developer, Wanda, announced a joint venture agreement to do real estate projects in the country. This will cover integrated township projects in India, including commercial buildings and residential apartments, hotels and retail space. This is the first time a Chinese real estate company is investing in India, according to sector analysts, though some Hong Kong-based developers have funded Indian projects.
The two signed a memorandum of understanding to set up a joint venture (JV) for a strategic long-term partnership covering several areas of mutual interest, the Reliance Group said. Among the first real estate projects of the JV will be in Navi Mumbai and Hyderabad.
The 135-acre Dhirubhai Ambani Knowledge City in Navi Mumbai, owned by Reliance Communications, has a development potential of 10 million square feet (sq ft), subject to necessary approvals.
The Hyderabad project is an 80-acre new business district owned by Reliance Infrastructure, having an unlimited floor-space index for development for commercial and residential purposes, hotels, etc. There are plans to develop up to 10 million sq ft area here in a phased manner.
“Over the past few years, the Reliance Group has become the single largest trading partner between India and China”, said Anil Ambani. He added the company was looking to extend the strategic partnership to the Wanda Group “in a manner that will tremendously benefit both, and unlock substantial value for millions of all our stakeholders”.
Since Wanda Group is also the leading multiplex player in the world, with a little over 6,000 screens, Reliance MediaWorks will explore a possible co-operation in the multiplexes business in India and the US. Earlier this year, Wanda acquired the AMC chain in the US for $2.6 billion (Rs 14,000 crore).
The JV is expected to be signed in a few weeks. Investment figures will be revealed then.
Reliance will bring in the land parcels and Wanda its expertise in construction and development.
Experts called the tie-up with a Chinese company a good move. “India should welcome funds. China is the second-largest economy and has huge surplus to invest”, said Anshuman Magazine, CMD, CB Richard Ellis, South Asia.
Magazine said India must diversify its sources of funds. “If we can accept funds from the US, why not from China? There shouldn’t be a bias”.
Wanda Group has built 130 million sq ft properties in 66 integrated projects across 50 cities in China and 38 five-star hotels.
“Wanda is very excited about the opportunities in the Indian market,” said Wang Jianlin, chairman, Wanda Group. “By joining our strengths, we hope our cooperation will bring mutual benefits and great results,” he added.
Dalian Wanda Group was founded in 1988 and operates across commercial properties, luxury hotels, tourism investment, cultural industry, and department store chains.
Earlier this year, Ambani’s Realiance Communications borrowed $1.18 billion from China’s lenders to repay its holders of foreign bonds. Reliance Power also tied up loans of $ 1.1 billion (over Rs 6,000 crore) from three Chinese lenders for its 3,960 MW Sasan ultra mega power project in Madhya Pradesh.
The two signed a memorandum of understanding to set up a joint venture (JV) for a strategic long-term partnership covering several areas of mutual interest, the Reliance Group said. Among the first real estate projects of the JV will be in Navi Mumbai and Hyderabad.
The 135-acre Dhirubhai Ambani Knowledge City in Navi Mumbai, owned by Reliance Communications, has a development potential of 10 million square feet (sq ft), subject to necessary approvals.
The Hyderabad project is an 80-acre new business district owned by Reliance Infrastructure, having an unlimited floor-space index for development for commercial and residential purposes, hotels, etc. There are plans to develop up to 10 million sq ft area here in a phased manner.
“Over the past few years, the Reliance Group has become the single largest trading partner between India and China”, said Anil Ambani. He added the company was looking to extend the strategic partnership to the Wanda Group “in a manner that will tremendously benefit both, and unlock substantial value for millions of all our stakeholders”.
Since Wanda Group is also the leading multiplex player in the world, with a little over 6,000 screens, Reliance MediaWorks will explore a possible co-operation in the multiplexes business in India and the US. Earlier this year, Wanda acquired the AMC chain in the US for $2.6 billion (Rs 14,000 crore).
The JV is expected to be signed in a few weeks. Investment figures will be revealed then.
Reliance will bring in the land parcels and Wanda its expertise in construction and development.
Experts called the tie-up with a Chinese company a good move. “India should welcome funds. China is the second-largest economy and has huge surplus to invest”, said Anshuman Magazine, CMD, CB Richard Ellis, South Asia.
Magazine said India must diversify its sources of funds. “If we can accept funds from the US, why not from China? There shouldn’t be a bias”.
Wanda Group has built 130 million sq ft properties in 66 integrated projects across 50 cities in China and 38 five-star hotels.
“Wanda is very excited about the opportunities in the Indian market,” said Wang Jianlin, chairman, Wanda Group. “By joining our strengths, we hope our cooperation will bring mutual benefits and great results,” he added.
Dalian Wanda Group was founded in 1988 and operates across commercial properties, luxury hotels, tourism investment, cultural industry, and department store chains.
Earlier this year, Ambani’s Realiance Communications borrowed $1.18 billion from China’s lenders to repay its holders of foreign bonds. Reliance Power also tied up loans of $ 1.1 billion (over Rs 6,000 crore) from three Chinese lenders for its 3,960 MW Sasan ultra mega power project in Madhya Pradesh.
Kotak Capital in tie-up with Sumitomo for M&A
Mumbai: Kotak Mahindra Capital, investment banking arm of Kotak Mahindra Bank, has entered into an exclusive strategic alliance with Sumitomo Mitsui Banking Corporation ( SMBC) and SMBC Nikko Securities for cross-border merger and acquisition (M&A) advisory services between India and Japan.
SMBC acquired a 4.5 per cent stake in Kotak Mahindra Bank in 2010, through preferential allotment of shares worth Rs 1,366 crore. Kotak and SMBC had also entered an agreement for business cooperation across various businesses of mutual interest, subject to relevant regulations. Since then, both have collaborated in and are working on a number of areas such as trade, finance, treasury products, corporate customer referrals, asset management and alternate assets.
The cooperation has now been extended to investment banking to complete the bouquet of offerings for companies in India and Japan. Earlier, Kotak Mahindra Capital had an exclusive strategic cooperation agreement with GCA Savvian Corporation for M&A advisory between Indian and Japan. The firms have concluded their agreement.
With the new agreement, Kotak, SMBC and SMBC Nikko Securities aim to play an active role in the growing cross-border M&A activity between India and Japan by leveraging their combined advisory capability, knowledge of local markets and long-standing corporate relationships.
Sumitomo Mitsui Banking Corporation is the core financial institution of Sumitomo Mitsui Financial Group, the second largest financial services group in terms of market capitalisation in Japan. SMBC Nikko is one of the largest full-service securities and investment banking firms in that country. The two companies have a combined team of 500 investment banking professionals in Japan and have advised on 90 transactions with announced deal value of $23 billion in calendar 2012.
“Japan is a priority market for cross-border M&A with India, and the growing relationship and synergies between the two countries will only continue to get stronger. We are confident through this alliance we can offer the best opportunities, advice and solutions to our clients,” said T V Raghunath, managing director and CEO of Kotak Investment Banking.
In calendar 2012, Japan ranked among the top three acquiring nations into India, and three of the 10 largest M&A transactions involving India took place in the India-Japan corridor.
Other areas of SMBC’s cooperation with Kotak Mahindra Bank is in setting up an India-focused infrastructure fund in collaboration with Canada-based Brookfield Asset Management. Shanti Ekambaram, president (corporate and investment banking) at Kotak Mahindra Bank, said fund raising is going on for this.
SMBC acquired a 4.5 per cent stake in Kotak Mahindra Bank in 2010, through preferential allotment of shares worth Rs 1,366 crore. Kotak and SMBC had also entered an agreement for business cooperation across various businesses of mutual interest, subject to relevant regulations. Since then, both have collaborated in and are working on a number of areas such as trade, finance, treasury products, corporate customer referrals, asset management and alternate assets.
The cooperation has now been extended to investment banking to complete the bouquet of offerings for companies in India and Japan. Earlier, Kotak Mahindra Capital had an exclusive strategic cooperation agreement with GCA Savvian Corporation for M&A advisory between Indian and Japan. The firms have concluded their agreement.
With the new agreement, Kotak, SMBC and SMBC Nikko Securities aim to play an active role in the growing cross-border M&A activity between India and Japan by leveraging their combined advisory capability, knowledge of local markets and long-standing corporate relationships.
Sumitomo Mitsui Banking Corporation is the core financial institution of Sumitomo Mitsui Financial Group, the second largest financial services group in terms of market capitalisation in Japan. SMBC Nikko is one of the largest full-service securities and investment banking firms in that country. The two companies have a combined team of 500 investment banking professionals in Japan and have advised on 90 transactions with announced deal value of $23 billion in calendar 2012.
“Japan is a priority market for cross-border M&A with India, and the growing relationship and synergies between the two countries will only continue to get stronger. We are confident through this alliance we can offer the best opportunities, advice and solutions to our clients,” said T V Raghunath, managing director and CEO of Kotak Investment Banking.
In calendar 2012, Japan ranked among the top three acquiring nations into India, and three of the 10 largest M&A transactions involving India took place in the India-Japan corridor.
Other areas of SMBC’s cooperation with Kotak Mahindra Bank is in setting up an India-focused infrastructure fund in collaboration with Canada-based Brookfield Asset Management. Shanti Ekambaram, president (corporate and investment banking) at Kotak Mahindra Bank, said fund raising is going on for this.
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