New Delhi: Indorama Eleme Fertiliser & Chemicals Ltd, part of the Indorama Group, has signed a $800-million long-term financing agreement with 16 global financial institutions to fund its $1.2-billion fertiliser project in Port Harcourt, Nigeria.
The greenfield project will produce 1.4 million tonnes of granulated urea a year using natural gas as feedstock from early 2016, the company said in a statement. Indorama Corporation, Singapore – the holding company of Indorama Group and Indorama Eleme Petrochemicals Ltd, Nigeria, will invest $400 million in the project.
“We continue to see significant growth prospects in Africa and West Asia . After investing more than $500 million over the past several years, Indorama is setting the foundation to create Africa’s largest petrochemical hub in Nigeria,” said Amit Lohia, Group Managing Director, Indorama, in a statement.
Success in my Habit
Monday, February 25, 2013
Daimler to add 800 people in Indian R&D centre
Bengaluru: The Euro 114.3-billion Daimler AG, owner of brands such as Mercedes-Benz cars and Daimler Trucks, has established a new R&D facility in Bangalore that will consolidate its existing operations and add fresh capacity. The facility is its biggest outside the one at its headquarters in Germany.
Mercedes-Benz Research and Development India (MBRDI), which has been in operation since 1996, has set up a 20,000 square meter R&D centre in the city's IT hub of Whitefield, with a capacity to seat 1,800 people. At present the Bangalore facility has 1,060 people. MBRDI operates a smaller satellite facility in Pune, which employs 140 people.
Starting out seventeen years ago with just 10 people, MBRDI has been involved in many areas of Daimler's global R&D work across cars, trucks, buses and vans. These include: component development of parts and modules for the new generation cars; design, development, and modelling of subsystems such as chassis, power train, suspension, interior and exterior components; prototyping, regionalization, and localization; embedded software design, and simulation. MBRDI also overlooks the group's IT engineering, SAP delivery, global and local IT infrastructure and operation services.
"As a global development centre the contribution of MBRDI can be envisaged from the fact that in 2012 alone, the organization filed over 50 patents for innovations in automotive development," said Thomas Weber, member of the board of management, Daimler AG, and head of group research, Mercedes-Benz Cars Development. He added that India was a high potential market for Mercedes-Benz and MBRDI would ensure its development initiatives were in cognizance with the needs of upcoming markets. In 2012, Mercedes- Benz India sold approximately 7,200 units.
Weber added that over the next two years MBRDI would hire 800 people taking the total R&D operations headcount to 2,000. "We are looking forward to a period of robust growth in India and as such, Indian talent pool will continue to play an even more dominant role in the years ahead," said Jens Cattarius, MD and CEO of MBRDI.
MBRDI has taken the leadership role in developing the human body modelling system (HBM), a simulation technology that considers every possible combination of accident variables from biomechanics and the physical properties of human tissues to accident statistics and the physics of crash situations.
"HBM is a key pillar supporting Daimler's vision of accident free driving," said Cattarius. MBRDI has also led the development of seats in Mercedes-Benz's newly launched A-Class and CLA-Class.
Mercedes-Benz Research and Development India (MBRDI), which has been in operation since 1996, has set up a 20,000 square meter R&D centre in the city's IT hub of Whitefield, with a capacity to seat 1,800 people. At present the Bangalore facility has 1,060 people. MBRDI operates a smaller satellite facility in Pune, which employs 140 people.
Starting out seventeen years ago with just 10 people, MBRDI has been involved in many areas of Daimler's global R&D work across cars, trucks, buses and vans. These include: component development of parts and modules for the new generation cars; design, development, and modelling of subsystems such as chassis, power train, suspension, interior and exterior components; prototyping, regionalization, and localization; embedded software design, and simulation. MBRDI also overlooks the group's IT engineering, SAP delivery, global and local IT infrastructure and operation services.
"As a global development centre the contribution of MBRDI can be envisaged from the fact that in 2012 alone, the organization filed over 50 patents for innovations in automotive development," said Thomas Weber, member of the board of management, Daimler AG, and head of group research, Mercedes-Benz Cars Development. He added that India was a high potential market for Mercedes-Benz and MBRDI would ensure its development initiatives were in cognizance with the needs of upcoming markets. In 2012, Mercedes- Benz India sold approximately 7,200 units.
Weber added that over the next two years MBRDI would hire 800 people taking the total R&D operations headcount to 2,000. "We are looking forward to a period of robust growth in India and as such, Indian talent pool will continue to play an even more dominant role in the years ahead," said Jens Cattarius, MD and CEO of MBRDI.
MBRDI has taken the leadership role in developing the human body modelling system (HBM), a simulation technology that considers every possible combination of accident variables from biomechanics and the physical properties of human tissues to accident statistics and the physics of crash situations.
"HBM is a key pillar supporting Daimler's vision of accident free driving," said Cattarius. MBRDI has also led the development of seats in Mercedes-Benz's newly launched A-Class and CLA-Class.
Swedish firms in India plan to step up investments
New Delhi: Swedish companies in India are upbeat about business prospects in the country with more than half wanting to step up investments in the current fiscal, a survey carried out by the Swedish Chamber of Commerce has highlighted.
With Swedish retailers such as IKEA and H&M planning to set up stores in India in 2013, things are set to get even better this year.
However, red-tape, including the procedure for obtaining licences and clearances, restrictions on business structures, a complex taxation structure, lack of skilled workforce, rising operational costs and complicated import rules, are acting as major hindrances to growth, the Business Confidence Survey 2012 points out.
Major Swedish companies in India include transport major Volvo, bio-pharma company Astra Zeneca, telecom provider Ericsson and industrial equipment makers Atlas Copco, Sandvik and SKF.
Increasing interest
“Even though we are facing an economic slowdown in India and the rest of the world and the business climate has hardened during 2012, there is an increase in Swedish companies in the Indian market,” the Survey pointed out.
Interestingly, Swedish companies in retail and IT have experienced highest growth while engineering and medical equipment are the only to sectors where the market has shrunk.
The number of Swedish companies in India has increased 14.5 per cent to 158 in 2012, compared with 153 the previous year, and the number is likely to go up this year. The survey, that was carried out through questionnaires circulated to 153 Swedish companies in India, also brings to light the confidence Swedish firms have in the India story.
Higher market share
More than half the companies surveyed confirmed that their investments would go up by more than 10 per cent in the current year.
Half the companies said they had increased their market share in 2012 over the previous year.
As many as 45 per cent of the respondents said their revenue forecast is 20 per cent higher than in 2011.
On the downside, as many as three-fourths of the respondents complained about rising operational costs, while 89 per cent expect their costs to go up in the future.
A very large number of respondents also believe that non-transparency in Government and bureaucratic hurdles were major obstacles.
With Swedish retailers such as IKEA and H&M planning to set up stores in India in 2013, things are set to get even better this year.
However, red-tape, including the procedure for obtaining licences and clearances, restrictions on business structures, a complex taxation structure, lack of skilled workforce, rising operational costs and complicated import rules, are acting as major hindrances to growth, the Business Confidence Survey 2012 points out.
Major Swedish companies in India include transport major Volvo, bio-pharma company Astra Zeneca, telecom provider Ericsson and industrial equipment makers Atlas Copco, Sandvik and SKF.
Increasing interest
“Even though we are facing an economic slowdown in India and the rest of the world and the business climate has hardened during 2012, there is an increase in Swedish companies in the Indian market,” the Survey pointed out.
Interestingly, Swedish companies in retail and IT have experienced highest growth while engineering and medical equipment are the only to sectors where the market has shrunk.
The number of Swedish companies in India has increased 14.5 per cent to 158 in 2012, compared with 153 the previous year, and the number is likely to go up this year. The survey, that was carried out through questionnaires circulated to 153 Swedish companies in India, also brings to light the confidence Swedish firms have in the India story.
Higher market share
More than half the companies surveyed confirmed that their investments would go up by more than 10 per cent in the current year.
Half the companies said they had increased their market share in 2012 over the previous year.
As many as 45 per cent of the respondents said their revenue forecast is 20 per cent higher than in 2011.
On the downside, as many as three-fourths of the respondents complained about rising operational costs, while 89 per cent expect their costs to go up in the future.
A very large number of respondents also believe that non-transparency in Government and bureaucratic hurdles were major obstacles.
Stage set for PSLV C20 launch today
Bengaluru: Indian Space Research Organisation’s (Isro) 23rd Polar Satellite Launch Vehicle (PSLV) mission, the PSLV-C20, is set to launch the 4,089-kg Indo-French satellite Saral along with six commercial payloads — six foreign mini and micro satellites — on Monday at 5.56 pm from the Satish Dhawan Space Centre at Sriharikota, Andhra Pradesh.
This will be the second highest number of satellites to be flown on a PSLV. In April 2008, it had put in orbit 10 satellites, including the national Cartosat-2A, on the PSLV-C9 rocket.
The Isro-built Saral is a 410-kg satellite with payloads — Argos and Altika — from French space agency Centre National d'Etudes Spatiales (CNES) for study of ocean parameters.
Saral stands for 'Satellite with ARgos and ALtiKa.
CNES has provided the two primary devices and ISRO is responsible for building and launching the spacecraft according to an agreement signed in February 2007 between the two governments. “The countdown is going on smoothly and the launch should be on schedule,” official ISRO spokesperson D P Karnik told Business Standard on Sunday evening.
The indigenous PSLV has been configured in a ‘core-alone’ or bare-bones format without the solid strap-on motors. “This will be the ninth core-alone flight of a PSLV,” said ISRO in a release.
Of the six small experimental payloads it will fly for a fee, two each are from universities in Canada and Austria and one each from the UK and Denmark.
The PSLV has an impeccable record of 21 consecutive successful flights. The 668.5-kg, 44.4-metre rocket will have a lift off mass of 229.7 tonnes.
ISRO had initially planned to launch Saral on December 12, 2012, but postponed it to carry out additional tests at Bangalore and in Sriharikota to “address technical issues to ensure reliability”.
President Mukherjee is expected to witness the event. The 59-hour countdown for the launch, which commenced at 6.56 am yesterday, was progressing normally, said ISRO sources.
The mission is a result of the common interest of both ISRO and CNES to study the ocean using altimetry (measurement of height or altitude) system and in promoting use of the Argos data collecting system, according to Isro.
This will be the second highest number of satellites to be flown on a PSLV. In April 2008, it had put in orbit 10 satellites, including the national Cartosat-2A, on the PSLV-C9 rocket.
The Isro-built Saral is a 410-kg satellite with payloads — Argos and Altika — from French space agency Centre National d'Etudes Spatiales (CNES) for study of ocean parameters.
Saral stands for 'Satellite with ARgos and ALtiKa.
CNES has provided the two primary devices and ISRO is responsible for building and launching the spacecraft according to an agreement signed in February 2007 between the two governments. “The countdown is going on smoothly and the launch should be on schedule,” official ISRO spokesperson D P Karnik told Business Standard on Sunday evening.
The indigenous PSLV has been configured in a ‘core-alone’ or bare-bones format without the solid strap-on motors. “This will be the ninth core-alone flight of a PSLV,” said ISRO in a release.
Of the six small experimental payloads it will fly for a fee, two each are from universities in Canada and Austria and one each from the UK and Denmark.
The PSLV has an impeccable record of 21 consecutive successful flights. The 668.5-kg, 44.4-metre rocket will have a lift off mass of 229.7 tonnes.
ISRO had initially planned to launch Saral on December 12, 2012, but postponed it to carry out additional tests at Bangalore and in Sriharikota to “address technical issues to ensure reliability”.
President Mukherjee is expected to witness the event. The 59-hour countdown for the launch, which commenced at 6.56 am yesterday, was progressing normally, said ISRO sources.
The mission is a result of the common interest of both ISRO and CNES to study the ocean using altimetry (measurement of height or altitude) system and in promoting use of the Argos data collecting system, according to Isro.
Saturday, February 23, 2013
Elecon Engg bags Rs 197-cr orders
Ahmedabad: Elecon Engineering Company Ltd has procured two orders of Rs 183 crore and Rs 14.42 crore.
While the Rs 183-crore order is from NCC Ltd (formerly Nagarjuna Construction Company Ltd) for design-to-commissioning of coal handling pipe conveyor system, that of Rs 14.42 crore is from Monnet Ispat & Energy Ltd for supply of stacker reclaimers, Prayasvin Patel, Chairman and Managing Director, Elecon, said here.
Established in 1951, Elecon Engineering, based at Vallabh Vidyanagar, near Anand in Gujarat, pioneered the manufacture of material handling equipment. It has designed and implemented several landmark projects in India and abroad in core sectors such as fertilizer, cement, coal, power generation, chemical, steel plant and port mechanisation.
While the Rs 183-crore order is from NCC Ltd (formerly Nagarjuna Construction Company Ltd) for design-to-commissioning of coal handling pipe conveyor system, that of Rs 14.42 crore is from Monnet Ispat & Energy Ltd for supply of stacker reclaimers, Prayasvin Patel, Chairman and Managing Director, Elecon, said here.
Established in 1951, Elecon Engineering, based at Vallabh Vidyanagar, near Anand in Gujarat, pioneered the manufacture of material handling equipment. It has designed and implemented several landmark projects in India and abroad in core sectors such as fertilizer, cement, coal, power generation, chemical, steel plant and port mechanisation.
TVS Logistics buys 85% stake in UK firm Rico for Rs 100 cr
Chennai: TVS Logistics has acquired an 85 per cent stake in the UK-based Rico Logistics for Rs 100 crore.
The acquisition will ‘significantly’ help TVS Logistics move towards becoming a $1-billion company by 2015, according to its Managing Director R. Dinesh. The acquisition was partly funded through funds raised from KKR, which had last year invested Rs 265 crore in TVS Logistics, and from internal accruals.
Last-Mile Capabilities
The stake buy will add service capabilities such as ‘last mile rapid response’ and new service verticals such as information technology, telecom and medical.
The deal was done through the holding company (TVS Logistics, UK), which will retain Rico’s 450 employees, he said.
This is the third acquisition by TVS Logistics in the UK, after CJ Components in 2004 and Multipart Holdings in 2009. These two companies now function under one brand — TVS Supply Chain Solutions.
With the acquisition of Rico, the employee strength of TVS Logistics in Europe will exceed 2,000 (direct and indirect).
Dinesh said the company would announce smaller acquisitions before March. Both organic and inorganic business will contribute equally to the target of achieving $1-billion revenue. “We have been growing 10-15 per cent in a market which is growing less than 5 per cent. The company is likely to end with revenue of around Rs 2,500 crore this year. This will not be as high as we hoped it to be,” he said.
Rico was formed in 1988 as a ‘same-day’ courier company and has grown to be a pan-European logistics service provider. With a turnover of Rs 380 crore, its clients include companies such as Dell, said Rico’s Managing Director, Sanjive Sharma. He will continue to oversee this company, says the press release.
Same-Day Response
The stake buy will give TVS Logistics technical value-add too.
For example, if an ATM fails in the UK, and an engineer needs a spare part to replace the damaged parts, Rico drops this spare in the engineer’s car boot at 3 a.m. and the engineer is at the site to repair the machine at 7 a.m. The same applies to the medical and telecom sectors, said Dinesh.
The acquisition will ‘significantly’ help TVS Logistics move towards becoming a $1-billion company by 2015, according to its Managing Director R. Dinesh. The acquisition was partly funded through funds raised from KKR, which had last year invested Rs 265 crore in TVS Logistics, and from internal accruals.
Last-Mile Capabilities
The stake buy will add service capabilities such as ‘last mile rapid response’ and new service verticals such as information technology, telecom and medical.
The deal was done through the holding company (TVS Logistics, UK), which will retain Rico’s 450 employees, he said.
This is the third acquisition by TVS Logistics in the UK, after CJ Components in 2004 and Multipart Holdings in 2009. These two companies now function under one brand — TVS Supply Chain Solutions.
With the acquisition of Rico, the employee strength of TVS Logistics in Europe will exceed 2,000 (direct and indirect).
Dinesh said the company would announce smaller acquisitions before March. Both organic and inorganic business will contribute equally to the target of achieving $1-billion revenue. “We have been growing 10-15 per cent in a market which is growing less than 5 per cent. The company is likely to end with revenue of around Rs 2,500 crore this year. This will not be as high as we hoped it to be,” he said.
Rico was formed in 1988 as a ‘same-day’ courier company and has grown to be a pan-European logistics service provider. With a turnover of Rs 380 crore, its clients include companies such as Dell, said Rico’s Managing Director, Sanjive Sharma. He will continue to oversee this company, says the press release.
Same-Day Response
The stake buy will give TVS Logistics technical value-add too.
For example, if an ATM fails in the UK, and an engineer needs a spare part to replace the damaged parts, Rico drops this spare in the engineer’s car boot at 3 a.m. and the engineer is at the site to repair the machine at 7 a.m. The same applies to the medical and telecom sectors, said Dinesh.
Gems, jewellery body ties up with UK body for sharing skills
Mumbai: The Gem and Jewellery Skill Council of India (GJSCI), part of the Government’s National Skill Development Corporation, has signed a memorandum of understanding with UK-based Creative and Cultural Skills. The MoU will enable sharing of best practice, staff exchange and development of new models to increase employer engagement and investment in skills. The partnership was announced in association with the UK Prime Minister David Cameron’s state visit to India. Catherine Large, Joint CEO, Creative and Cultural Skills, said the partnership will work on measures to set up industry recognised standards and providing fair access for young people.
Indian healthcare providers to spend Rs 5,700 crore on IT: Gartner
Mumbai: Healthcare providers in India will spend Rs 5,700 crore on IT products and services in 2013, a 7 per cent rise over 2012 revenues of Rs 5,300 crore.
They include spending by healthcare providers (hospitals and hospital systems, as well as ambulatory services and physicians' practices) on internal IT (including personnel), hardware, software, external IT services and telecommunications.
“Rising demand from the growing middle-class in India’s large cities is fuelling growth in private sector healthcare. Large national and State Government programmes will spur growth along the primary (and secondary) care sector and public health domain,” said Anurag Gupta, research director at Gartner.
“Hospital information systems, picture archiving and communications systems, electronic health records and mobile technologies will be high on the agenda. We expect to see providers benefit by offering cost-effective business models which show quick returns on capital by improving patient coverage and improving quality of care. Health insurance growth will also catalyse technology adoption in healthcare provider segments,” Gupta added.
Telecommunications, which includes telecommunications and networking equipment and services, will remain the largest overall spending category throughout the forecast period within the healthcare providers sector, according to a forecast by research and analysis firm Gartner.
It is expected to grow to 3.9 per cent in 2013 to reach Rs 1,720 crore in 2013, up from Rs 1,660 crore in 2012, with most of this growth coming from enterprise communication equipment.
Internal services (salaries and benefits paid to information services staff) will achieve the highest growth rate amongst the spending categories — forecast to be 18 per cent in 2013.
IT services will achieve the next highest growth rate amongst the spending categories — forecast to grow 9.7 per cent in 2013 to reach Rs 1,450 crore in 2013, up from Rs 1,320 crore in 2012 led by growth in process management and consulting.
They include spending by healthcare providers (hospitals and hospital systems, as well as ambulatory services and physicians' practices) on internal IT (including personnel), hardware, software, external IT services and telecommunications.
“Rising demand from the growing middle-class in India’s large cities is fuelling growth in private sector healthcare. Large national and State Government programmes will spur growth along the primary (and secondary) care sector and public health domain,” said Anurag Gupta, research director at Gartner.
“Hospital information systems, picture archiving and communications systems, electronic health records and mobile technologies will be high on the agenda. We expect to see providers benefit by offering cost-effective business models which show quick returns on capital by improving patient coverage and improving quality of care. Health insurance growth will also catalyse technology adoption in healthcare provider segments,” Gupta added.
Telecommunications, which includes telecommunications and networking equipment and services, will remain the largest overall spending category throughout the forecast period within the healthcare providers sector, according to a forecast by research and analysis firm Gartner.
It is expected to grow to 3.9 per cent in 2013 to reach Rs 1,720 crore in 2013, up from Rs 1,660 crore in 2012, with most of this growth coming from enterprise communication equipment.
Internal services (salaries and benefits paid to information services staff) will achieve the highest growth rate amongst the spending categories — forecast to be 18 per cent in 2013.
IT services will achieve the next highest growth rate amongst the spending categories — forecast to grow 9.7 per cent in 2013 to reach Rs 1,450 crore in 2013, up from Rs 1,320 crore in 2012 led by growth in process management and consulting.
AirAsia to tie up with Tata Sons for new airline in India
Mumbai/ Chennai: This is a big fat wedding in India's turbulent skies. One of the airline industry's most aggressive entrepreneurs and AirAsia founder Tony Fernandes has brought the Tata Group back into the airline industry after 60 years. The India-origin Fernandes has also drawn in the family of Amit Bhatia, son-in-law of steel tycoon Lakshmi Mittal, pulling off a coup in the cash-strapped domestic aviation industry.
Asia's biggest low-cost carrier, the Kuala Lumpur-based AirAsia, is floating a joint venture with Tata Sons, the holding company of India's largest conglomerate, and Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India. AirAsia will have 49% stake, Tatas 30% and Bhatia will hold 21% in the company, which will be headquartered in Chennai.
The JV hopes to start operations in the last quarter of this year under the AirAsia brand, the 48-year-old AirAsia CEO Fernandes said in a late-evening conference call with the media. AirAsia's entry is expected to shake up India's airline sector, which has seen airfares shoot up in recent past. The airline already flies into several south Indian cities, linking them with major Asian hubs at competitive fares.
This is the first foreign direct investment (FDI) after the government relaxed ownership rules, allowing foreign carriers to hold 49% stake in a domestic airline. "We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia's low fares," Fernandes said. AirAsia operates multiple joint ventures in Asian markets.
"We hope to have regulatory approvals in place by the fourth quarter of this year. AirAsia typically invests anywhere from $30 million to $50 million to start an airline," he said, adding that Tata Group chairman emeritus Ratan Tata would be representing the Indian side. Fernandes shares a personal rapport with the 75-year-old Tata, a fact that triggered the deal.
The JV marks the Tata Group's return to the aviation business, something which it pioneered in the country as well as Cyrus Mistry's first big move after becoming group chairman in December last year. The group bowed out of aviation when India nationalized Tata Airlines, which is now Air India, in 1953.
The $100 billion group that has its finger in almost every business from outsourcing to steel, luxury cars and salt has always desired to have a presence in the aviation sector. It explored returning to the sector at least twice in the past two decades, when it joined hands with Singapore Airlines, first to float a new airline, and then, to bid for Air India.
But the government's flip-flop policies and political opposition buried the group's desires until Fernandes approached Ratan Tata with a proposal late last year. A Tata executive said that the group's participation in the venture is that of a financial investor and it will not be running the show.
Analysts said India's robust air travel demand was the key to draw AirAsia and other investors to the domestic aviation story. Amit Bhatia is a co-investor with Fernandes in sporting ventures, which include owning European football team Queen Park Rangers. Estimates suggest that the number of domestic air travellers will triple to 159 million by 2021. "Hugely exciting venture involving my family, Tata Sons and the coolest guy around, Tony Fernandes," Bhatia tweeted.
The parties have made an application to the Foreign Investment Promotion Board for approval, after which they require the blessings of the civil aviation ministry. They will then have to approach the airline regulator for an air operator's permit.
Asia's biggest low-cost carrier, the Kuala Lumpur-based AirAsia, is floating a joint venture with Tata Sons, the holding company of India's largest conglomerate, and Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India. AirAsia will have 49% stake, Tatas 30% and Bhatia will hold 21% in the company, which will be headquartered in Chennai.
The JV hopes to start operations in the last quarter of this year under the AirAsia brand, the 48-year-old AirAsia CEO Fernandes said in a late-evening conference call with the media. AirAsia's entry is expected to shake up India's airline sector, which has seen airfares shoot up in recent past. The airline already flies into several south Indian cities, linking them with major Asian hubs at competitive fares.
This is the first foreign direct investment (FDI) after the government relaxed ownership rules, allowing foreign carriers to hold 49% stake in a domestic airline. "We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia's low fares," Fernandes said. AirAsia operates multiple joint ventures in Asian markets.
"We hope to have regulatory approvals in place by the fourth quarter of this year. AirAsia typically invests anywhere from $30 million to $50 million to start an airline," he said, adding that Tata Group chairman emeritus Ratan Tata would be representing the Indian side. Fernandes shares a personal rapport with the 75-year-old Tata, a fact that triggered the deal.
The JV marks the Tata Group's return to the aviation business, something which it pioneered in the country as well as Cyrus Mistry's first big move after becoming group chairman in December last year. The group bowed out of aviation when India nationalized Tata Airlines, which is now Air India, in 1953.
The $100 billion group that has its finger in almost every business from outsourcing to steel, luxury cars and salt has always desired to have a presence in the aviation sector. It explored returning to the sector at least twice in the past two decades, when it joined hands with Singapore Airlines, first to float a new airline, and then, to bid for Air India.
But the government's flip-flop policies and political opposition buried the group's desires until Fernandes approached Ratan Tata with a proposal late last year. A Tata executive said that the group's participation in the venture is that of a financial investor and it will not be running the show.
Analysts said India's robust air travel demand was the key to draw AirAsia and other investors to the domestic aviation story. Amit Bhatia is a co-investor with Fernandes in sporting ventures, which include owning European football team Queen Park Rangers. Estimates suggest that the number of domestic air travellers will triple to 159 million by 2021. "Hugely exciting venture involving my family, Tata Sons and the coolest guy around, Tony Fernandes," Bhatia tweeted.
The parties have made an application to the Foreign Investment Promotion Board for approval, after which they require the blessings of the civil aviation ministry. They will then have to approach the airline regulator for an air operator's permit.
Shanghai Hitachi to invest Rs 500 cr to make compressors in Gujarat
Ahmedabad: Shanghai Hitachi Electricity Appliances Company, a joint venture company of China-based Shanghai Highly Group and Hitachi Appliances of Japan, will invest Rs 500 crore in the next two years in Gujarat to manufacture air-conditioning compressors and relevant refrigeration products to focus on India and West Asian markets.
The company has taken 40,000 square meters of land on lease at Changodar, an industrial area on the outskirts of Ahmedabad, for this facility. It will give employment to nearly 1,000 people, and also provide job work to many SMEs.
The venture was facilitated by the India China Economic and Cultural Council (ICEC), Gujarat, and has initiated procedure to register its India entity Highly Electrical Appliances India Private Ltd with the Registrar of Companies, Ahmedabad, said Shen Jian Fang, Chairman of the company, here on Wednesday.
The annual capacity of the plant would be two billion H/L series air-conditioner compressors once the plant becomes fully functional. The Phase I work will be completed by October 2013 and second and last phase is expected to finish at the end of 2014.
According to Fang, the plant would also generate indirect employment opportunities for 10,000 people that include local suppliers and their employees. He said that priority will be given to local workforce in direct employment as well as selection of vendors. The venture would initially assemble the air-conditioner compressors and then outsource certain parts and give job work to local vendors.
The joint venture was formed 20 years ago in 1993 with 75 per cent share of Shanghai Highly Group and 25 per cent stake of Hitachi. The company’s annual turnover is $1 billion. The company has three plants in China.
The joint venture was originally set up to cater the Chinese market only. It later started exporting to 30 countries, including India, the Gulf, Brazil, the Philippines and European countries. More than 8,000 people are working in different parts of the world for the joint venture, which is at present a Rs 6,400-crore company.
The company has taken 40,000 square meters of land on lease at Changodar, an industrial area on the outskirts of Ahmedabad, for this facility. It will give employment to nearly 1,000 people, and also provide job work to many SMEs.
The venture was facilitated by the India China Economic and Cultural Council (ICEC), Gujarat, and has initiated procedure to register its India entity Highly Electrical Appliances India Private Ltd with the Registrar of Companies, Ahmedabad, said Shen Jian Fang, Chairman of the company, here on Wednesday.
The annual capacity of the plant would be two billion H/L series air-conditioner compressors once the plant becomes fully functional. The Phase I work will be completed by October 2013 and second and last phase is expected to finish at the end of 2014.
According to Fang, the plant would also generate indirect employment opportunities for 10,000 people that include local suppliers and their employees. He said that priority will be given to local workforce in direct employment as well as selection of vendors. The venture would initially assemble the air-conditioner compressors and then outsource certain parts and give job work to local vendors.
The joint venture was formed 20 years ago in 1993 with 75 per cent share of Shanghai Highly Group and 25 per cent stake of Hitachi. The company’s annual turnover is $1 billion. The company has three plants in China.
The joint venture was originally set up to cater the Chinese market only. It later started exporting to 30 countries, including India, the Gulf, Brazil, the Philippines and European countries. More than 8,000 people are working in different parts of the world for the joint venture, which is at present a Rs 6,400-crore company.
Subscribe to:
Posts (Atom)