Chennai: Australia is eager to negotiate a comprehensive economic partnership (essentially a free trade agreement) to intensify and diversify the trade partnership with India, said Patrick Suckling, Australian High Commissioner. There is strong political commitment on this and four rounds of negotiations have been held, said Suckling, addressing the 23rd annual day of the Indo-Australian Chamber of Commerce in the city.
Goods tariffs have already been exchanged and services tariffs will be discussed soon, he said. A fifth round of negotiations will be held in May in Australia. Bilateral trade between the two countries stands at $22 billion and has the potential to double in a few years. Last year, India invested $11 billion in Australia. Indian exports to Australia doubled to $3 billion, in the last few years.
“Economic relations will be the bedrock of the relationship growing forward,” said Suckling. Four top Australian banks, infrastructure, education, agri- business and biotech companies from Australia are in India. Indian interest in Australia encompasses aircraft technology, medical, IT and education, he said.
Trade agenda
The G20 forum of which both India and Australia are members is looking to promote a quick economic recovery. “We are working closely with India on a sustainable global growth and trade agenda.” The high commissioner said security cooperation, especially maritime security, will also be deepened between the two countries.
Australia is committed to negotiating safeguards with India to sell uranium, which is currently not exported as India is not a signatory to the non-proliferation treaty, said Suckling.
Safeguarding Indians
People to people relations are also growing, said Suckling. Around 450,000 people of Indian origin are in Australia. Indians are the fastest growing migrant group. Indians also comprise the second largest student population, after Chinese students. (In 2012, there were 55,000 Indian students in Australia).
Success in my Habit
Wednesday, March 13, 2013
Biyani, Hong Kong billionaire to form JV
Mumbai: Future Group founder Kishore Biyani has planned a 50:50 venture with the family investment vehicle of Hong Kong-based billionaire Victor K Fung, for imports and wholesaling.
The joint venture will be outside Future's listed entity, Pantaloon Retail, and be part of Future's investment vehicles, sources said. The venture is to operate large wholesale markets on the lines of the YIWU market in China and Dragon Mart in Dubai, and to import products from China and other Asian countries and sell to Indian retail chains and small retailers.
Future and Fung Group already have a partnership with Bangalore-based Sattva Properties to develop a wholesale market in the city. A second one is expected to come up in Mumbai in the next couple of months.
"Our family investment vehicle wants a closer relationship with Future Group and we want to support them in wholesaling and cash & carry ventures in the country," said Victor K Fung, at the launch of the distribution centre of Future Supply Chains (FSC), logistics arm of Future Group, in Nagpur yesterday.
Fung Group has 26 per cent stake in FSC, which it had bought for $30 million.
The 1.5 million sq ft wholesale market coming up in Bangalore will have a wholesale store run by the Future-Fung combine, with the rest of the space leased to multiple wholesellers. Depending on the success, the partners are looking to roll it out in other parts of the country, said Rajesh Ranavat, who looks after the Fung family's business interests in India.
While the venture will focus on supplying slightly high-end products to modern trade, it will supply mass products to smaller retailers.
Fung Holdings, the privately-held entity of Fung Group, is into trading, distribution, retailing and logistics. It does business in 40 countries and its revenue in 2011 was S$21 billion.
"We want to cater to both modern trade and small retailers who want imported products from China and other countries. We can look at importing for chains such as Shoppers Stop and Lifestyle," Ranavat said.
Fung Group is also looking at increasing its stake in FSC. "We are looking at that. That could be a possibility," he said. "The existing venture is beyond breakeven. It never lost money."
The joint venture will be outside Future's listed entity, Pantaloon Retail, and be part of Future's investment vehicles, sources said. The venture is to operate large wholesale markets on the lines of the YIWU market in China and Dragon Mart in Dubai, and to import products from China and other Asian countries and sell to Indian retail chains and small retailers.
Future and Fung Group already have a partnership with Bangalore-based Sattva Properties to develop a wholesale market in the city. A second one is expected to come up in Mumbai in the next couple of months.
"Our family investment vehicle wants a closer relationship with Future Group and we want to support them in wholesaling and cash & carry ventures in the country," said Victor K Fung, at the launch of the distribution centre of Future Supply Chains (FSC), logistics arm of Future Group, in Nagpur yesterday.
Fung Group has 26 per cent stake in FSC, which it had bought for $30 million.
The 1.5 million sq ft wholesale market coming up in Bangalore will have a wholesale store run by the Future-Fung combine, with the rest of the space leased to multiple wholesellers. Depending on the success, the partners are looking to roll it out in other parts of the country, said Rajesh Ranavat, who looks after the Fung family's business interests in India.
While the venture will focus on supplying slightly high-end products to modern trade, it will supply mass products to smaller retailers.
Fung Holdings, the privately-held entity of Fung Group, is into trading, distribution, retailing and logistics. It does business in 40 countries and its revenue in 2011 was S$21 billion.
"We want to cater to both modern trade and small retailers who want imported products from China and other countries. We can look at importing for chains such as Shoppers Stop and Lifestyle," Ranavat said.
Fung Group is also looking at increasing its stake in FSC. "We are looking at that. That could be a possibility," he said. "The existing venture is beyond breakeven. It never lost money."
Temasek Holdings invests Rs 140 crore in HealthCare Global Enterprises
Bengaluru: Temasek Holdings, Singapore's state-owned investment company, has invested Rs 140 crore in Bangalore-headquartered cancer care provider HealthCare Global Enterprises (HCG).
The deal, which closed this week, values the company around Rs 1,000 crore, with HCG's founder and chairman BS Ajaikumar retaining a 26-28% stake, according to a person with direct knowledge of the deal.
"This investment is a good wake-up call that India is ready to take centre stage in oncology," said Ajaikumar. "It is a good feeling." The company will use the funding to double its network to 50 centres in India and Africa. It also has plans to enter the multi-speciality space.
Temasek joins existing investors Premji Invest, an investment entity owned by Wipro chairman Azim Premji, and Milestone Religare in a primary equity issuance by the company.
"We are pleased to invest in this firm which has redefined cancer care in India," said Rohit Sipahimalani, who heads the India practice for Temasek. The investment firm's $157-billion portfolio counts Bank of China, telecom firm Airtel and Singapore Airlines among its major companies.
Temasek's investment in HCG has also paved the way for Dubai-based alternative investment house Evolvence Capital to exit. The firm which had invested 30 crore in HCG almost five years ago out of its Evolvence India Life Sciences Fund has gained close to 2.3 times return on investment.
This is the second time that a private equity fund has made a successful exit from HCG. The medical care provider initially raised Rs 50-crore from IDFC Private Equity almost seven years ago. When HCG raised a subsequent round of 240 crore from Premji Invest and Milestone, it enabled IDFC to exit the venture last year in April.
"Investors are chasing single-speciality chains instead of multi-speciality, as the model is more profitable, focused and it is easier to predict the outcome," said Harish HV, partner at Grant Thornton India.
Private equity and venture capital investments in the healthcare industry in India are increasing rapidly as supply is woefully low and demand continues to surge. Last year, the industry absorbed $1.2 billion across 48 deals, according to research firm Venture Intelligence. In 2011, there were 38 deals in the sector worth $421 million.
The deal, which closed this week, values the company around Rs 1,000 crore, with HCG's founder and chairman BS Ajaikumar retaining a 26-28% stake, according to a person with direct knowledge of the deal.
"This investment is a good wake-up call that India is ready to take centre stage in oncology," said Ajaikumar. "It is a good feeling." The company will use the funding to double its network to 50 centres in India and Africa. It also has plans to enter the multi-speciality space.
Temasek joins existing investors Premji Invest, an investment entity owned by Wipro chairman Azim Premji, and Milestone Religare in a primary equity issuance by the company.
"We are pleased to invest in this firm which has redefined cancer care in India," said Rohit Sipahimalani, who heads the India practice for Temasek. The investment firm's $157-billion portfolio counts Bank of China, telecom firm Airtel and Singapore Airlines among its major companies.
Temasek's investment in HCG has also paved the way for Dubai-based alternative investment house Evolvence Capital to exit. The firm which had invested 30 crore in HCG almost five years ago out of its Evolvence India Life Sciences Fund has gained close to 2.3 times return on investment.
This is the second time that a private equity fund has made a successful exit from HCG. The medical care provider initially raised Rs 50-crore from IDFC Private Equity almost seven years ago. When HCG raised a subsequent round of 240 crore from Premji Invest and Milestone, it enabled IDFC to exit the venture last year in April.
"Investors are chasing single-speciality chains instead of multi-speciality, as the model is more profitable, focused and it is easier to predict the outcome," said Harish HV, partner at Grant Thornton India.
Private equity and venture capital investments in the healthcare industry in India are increasing rapidly as supply is woefully low and demand continues to surge. Last year, the industry absorbed $1.2 billion across 48 deals, according to research firm Venture Intelligence. In 2011, there were 38 deals in the sector worth $421 million.
Rice exports set to cross 10 mt this fiscal
New Delhi: Rice exports are set to cross 10 million tonnes in the current financial year on robust demand from West Asia, Africa and South-East Asian countries. Last year, the total rice exports stood at 7.3 million tonnes.
“Till January-end, the total shipments stood at 8.2 mt. We will exceed 10 mt by March 31,” said R. Sundaresan, Executive Director, at the All India Rice Exporters Association.
Basmati shipments, which have gained momentum in the past two months on rising demand from Iran, would cross 3.5 mt over the last year’s 3.21 mt.
Till January-end, the exports stood at 2.8 mt. Iran is the largest buyer of Indian basmati rice and accounts for close to 30 per cent of the country’s shipments.
In value terms, the basmati exports may cross Rs 17,000 crore on better realisations. Last year, the basmati exports stood at Rs 15,450 crore. The average realisations are up by about 20 per cent at around $1,200 a tonne against last year’s $1,000 a tonne, Sundaresan said.
Besides, the depreciating currency, which has made the Indian rice competitive in the world market, has boosted the rupee-term realisations.
The non-basmati rice shipments are expected to register an increase of 58 per cent at around 6.5 mt against last year’s 4.09 mt. This is mainly on account of huge demand from African countries such as Nigeria and Ghana and also from Indonesia. The average realisations for non-basmati rice are around $400 a tonne.
“The overall growth in shipments is good, but the non-basmati rice continues to fetch a lower price than our competitors. There is a need to create awareness on our quality,” said Vijay Setia, Director at Chamanlal Setia Exports Ltd, Amritsar-based exporter.
The growth in rice export volumes is expected to help India retain the top slot as the world’s largest exporter. Last year, India had emerged as the world’s largest exporter displacing Thailand.
“The consistent production of over 100 mt of rice in the past four years has helped us boost our exports. About 80 per cent of our non-basmati shipments have been to Africa, where we compete heavily with the parboiled variety from Thailand,” said S. Venkatesh, Head of International Trade at LT Foods Ltd. India had lifted the four-year ban on exports of non-basmati rice in September 2011.
“Till January-end, the total shipments stood at 8.2 mt. We will exceed 10 mt by March 31,” said R. Sundaresan, Executive Director, at the All India Rice Exporters Association.
Basmati shipments, which have gained momentum in the past two months on rising demand from Iran, would cross 3.5 mt over the last year’s 3.21 mt.
Till January-end, the exports stood at 2.8 mt. Iran is the largest buyer of Indian basmati rice and accounts for close to 30 per cent of the country’s shipments.
In value terms, the basmati exports may cross Rs 17,000 crore on better realisations. Last year, the basmati exports stood at Rs 15,450 crore. The average realisations are up by about 20 per cent at around $1,200 a tonne against last year’s $1,000 a tonne, Sundaresan said.
Besides, the depreciating currency, which has made the Indian rice competitive in the world market, has boosted the rupee-term realisations.
The non-basmati rice shipments are expected to register an increase of 58 per cent at around 6.5 mt against last year’s 4.09 mt. This is mainly on account of huge demand from African countries such as Nigeria and Ghana and also from Indonesia. The average realisations for non-basmati rice are around $400 a tonne.
“The overall growth in shipments is good, but the non-basmati rice continues to fetch a lower price than our competitors. There is a need to create awareness on our quality,” said Vijay Setia, Director at Chamanlal Setia Exports Ltd, Amritsar-based exporter.
The growth in rice export volumes is expected to help India retain the top slot as the world’s largest exporter. Last year, India had emerged as the world’s largest exporter displacing Thailand.
“The consistent production of over 100 mt of rice in the past four years has helped us boost our exports. About 80 per cent of our non-basmati shipments have been to Africa, where we compete heavily with the parboiled variety from Thailand,” said S. Venkatesh, Head of International Trade at LT Foods Ltd. India had lifted the four-year ban on exports of non-basmati rice in September 2011.
Govt keen on promoting micro, small units
Hyderabad: Andhra Pradesh Government is keen on promoting micro, small and medium enterprises (MSMEs), according to Minister of Major Industries J. Geetha Reddy.
In her inaugural address at a bankers’ conclave on the MSME sector organised by the Federation of Andhra Pradesh Chambers of Commerce and Industries here on Saturday, she said Government would consider allotment of land to such clusters on a proactive basis.
There were about 1.8 lakh SMEs in the State employing a capital of Rs 33,900 crore and providing jobs to close to two lakh people, she said.
However, many MSMEs did not have enough understanding on the financial institutions and credit availability. “There is a need for conducting awareness campaigns to improve awareness,” the Minister said.
In his keynote address, Sanjaya Baru, Director, International Institute for Strategic Studies, said there was a need for collaboration between small and medium enterprises and financial institutions.
“It should be a day-to-day interaction to ensure that small businesses are on a firm financial footing,” he said in his address. Small and medium enterprises should focus on finance, technology and efficiency to reduce the mortality rate, he said.
The MSMEs should try to stand on their own after a period of time without fear of losing the initial concessions, he added.
Banks should extend finance to smaller units on a competitive basis but not due to Government intervention, Baru said.
Devendra Surana, President, Fapcci, said the power supply situation in the State was “very bad’ causing lot of trouble to the industry.
The MSME sector should be strengthened, he added.
In her inaugural address at a bankers’ conclave on the MSME sector organised by the Federation of Andhra Pradesh Chambers of Commerce and Industries here on Saturday, she said Government would consider allotment of land to such clusters on a proactive basis.
There were about 1.8 lakh SMEs in the State employing a capital of Rs 33,900 crore and providing jobs to close to two lakh people, she said.
However, many MSMEs did not have enough understanding on the financial institutions and credit availability. “There is a need for conducting awareness campaigns to improve awareness,” the Minister said.
In his keynote address, Sanjaya Baru, Director, International Institute for Strategic Studies, said there was a need for collaboration between small and medium enterprises and financial institutions.
“It should be a day-to-day interaction to ensure that small businesses are on a firm financial footing,” he said in his address. Small and medium enterprises should focus on finance, technology and efficiency to reduce the mortality rate, he said.
The MSMEs should try to stand on their own after a period of time without fear of losing the initial concessions, he added.
Banks should extend finance to smaller units on a competitive basis but not due to Government intervention, Baru said.
Devendra Surana, President, Fapcci, said the power supply situation in the State was “very bad’ causing lot of trouble to the industry.
The MSME sector should be strengthened, he added.
Africa rolls out the red carpet for Indian investors with projects worth $65 billion
New Delhi: Indian companies’ interest in Africa is set to get a major boost. A three-day India-Africa Project Partnership Summit, starting from March 17 in Delhi, will roll out the red carpet for Indian investors. Representatives from almost all the African countries will participate at the summit, being organised by the Confederation of Indian industry (CII) and Exim Bank, with Burundi, Cameroon and Zambia as the main guest countries.
Already, 30 African countries have submitted 475 project proposals worth $65 billion, in which Indian companies can invest. Even if half of these find takers, it would push India Inc’s overall investment in Africa from $35 billion to about $60 billion.
The major sectors that the African countries are looking for Indian investment include agriculture, consumer durables, infrastructure, energy, transport, mining, finance and telecom.
There are huge opportunities in Africa, especially in consumer durables and agriculture. Moreover, these countries provide ideal investment climate, too. We want to showcase the opportunities there to the Indian corporates, said Adi Godrej, CII president and chairman of the Godrej group.
Among the companies that have invested in Africa are Airtel, Godrej, Emami, Marico, Dabur, ONGC Videsh, Essar, Coal India, Tata Group, Godrej group, Bharti, Kirloskar, Mahindra & Mahindra, Escorts and Apollo.
The bilateral trade between Indian and Africa has gone up from $3 billion in 2000 to about $70 billion during the current financial year. The trade is expected to touch $90 billion by 2015.
Although Africa is widely seen as a battleground between India and China for trade supremacy, the buzzword at the ground level is collaboration, rather than competition.
“For us, it is much like a hand-holding approach by two elder sisters,” said Jonathan Wutawunashe, Zimbabwe’s ambassador to India.
In an effort to tackle the aggressive Chinese expansion in Africa, India had extended a $5.7-billion credit and grants for developmental projects and over 100 capacity building institutions in Africa. This is apart from the line of credit that EXIM Bank provides to African nations.
Among the proposals that CII received from the African nations are 126 agricultural projects worth an investment of $4.74 billion, 177 infrastructure projects worth $34.19 billion, and 34 energy sector plans costing $20.74 billion.
“In the last decade, both India and Africa signed 24 major bilateral treaties and we have already become the fourth largest trading partner with Africa. The summit would further boost those initiatives,” said Chandrajit Banerjee, director-general, CII.
India has also been helping Africa in pan-African e-network projects, tele-education and developing basic infrastructure facilities like water management projects.
Already, 30 African countries have submitted 475 project proposals worth $65 billion, in which Indian companies can invest. Even if half of these find takers, it would push India Inc’s overall investment in Africa from $35 billion to about $60 billion.
The major sectors that the African countries are looking for Indian investment include agriculture, consumer durables, infrastructure, energy, transport, mining, finance and telecom.
There are huge opportunities in Africa, especially in consumer durables and agriculture. Moreover, these countries provide ideal investment climate, too. We want to showcase the opportunities there to the Indian corporates, said Adi Godrej, CII president and chairman of the Godrej group.
Among the companies that have invested in Africa are Airtel, Godrej, Emami, Marico, Dabur, ONGC Videsh, Essar, Coal India, Tata Group, Godrej group, Bharti, Kirloskar, Mahindra & Mahindra, Escorts and Apollo.
The bilateral trade between Indian and Africa has gone up from $3 billion in 2000 to about $70 billion during the current financial year. The trade is expected to touch $90 billion by 2015.
Although Africa is widely seen as a battleground between India and China for trade supremacy, the buzzword at the ground level is collaboration, rather than competition.
“For us, it is much like a hand-holding approach by two elder sisters,” said Jonathan Wutawunashe, Zimbabwe’s ambassador to India.
In an effort to tackle the aggressive Chinese expansion in Africa, India had extended a $5.7-billion credit and grants for developmental projects and over 100 capacity building institutions in Africa. This is apart from the line of credit that EXIM Bank provides to African nations.
Among the proposals that CII received from the African nations are 126 agricultural projects worth an investment of $4.74 billion, 177 infrastructure projects worth $34.19 billion, and 34 energy sector plans costing $20.74 billion.
“In the last decade, both India and Africa signed 24 major bilateral treaties and we have already become the fourth largest trading partner with Africa. The summit would further boost those initiatives,” said Chandrajit Banerjee, director-general, CII.
India has also been helping Africa in pan-African e-network projects, tele-education and developing basic infrastructure facilities like water management projects.
Friday, March 8, 2013
AirAsia's joint venture with Tata Group airline gets Foreign Investment Promotion Board's green signal
New Delhi: Domestic air travellers will soon have the option of flying a Tata Group airline. The Foreign Investment Promotion Board (FIPB) on Wednesday cleared Malaysian low-cost carrier (LCC) AirAsia's proposal to form a budget airline in a JV with the Tatas and Telstra Tradeplace at an initial investment of Rs 80 crore.
After the FIPB meeting, economic affairs secretary Arvind Mayaram said: "They will now have to take the necessary licence from the Directorate General of Civil Aviation (DGCA). They can start operating now once they get the licence."
However, getting the aviation ministry's nod could prove to be a time-consuming process as it requires some changes in the recently liberalized foreign direct investment (FDI) policy. "I welcome the proposed new airline. But, the policy of FDI cleared by the commerce ministry allows foreign airlines to invest in existing Indian carriers. FIPB may have cleared the proposal but it has to meet the existing requirements. Now the commerce ministry will have to change that rule and allow a startup FDI JV," aviation minister Ajit Singh told TOI, while terming it a "procedural issue that will not derail the proposal."
Aviation secretary K N Srivastava, who attended the FIPB meeting, is learnt to have raised this issue and sought clarification from the department of industrial policy and promotion. Aviation ministry officials point out that "procedural issues" in the proposed AirAsia India JV. "As of now no company has been formed in this joint venture. So, under the current FDI rule, we may not be able to clear it till the commerce ministry makes the required changes or tells us it can be cleared in the current form under the existing rules," said a senior official. However, Ajit Singh reiterated that there was no opposition to the proposed new airline and that the ministry has already sought commerce ministry views on this issue.
Tata Group chairman emeritus Ratant Tata tweeted: "FIPB approval of the airline project ... reflects the true investor friendly policies of the government. This and other similar actions will, without doubt, reinforce investor confidence in India. I applaud the government for its transparency and its principled implementation of the stated policy."
Highly placed sources say that the government is unlikely to allow any technical issue to delay the new airline despite stiff opposition from some influential existing carriers, since the AirAsia-Tata JV is being seen as a test case of India's commitment to attract foreign investors. In the past also, Tata Group's attempts to enter aviation space by tying up with Singapore Airlines were thwarted by a big Indian airline and the government is unlikely to allow a repeat this time.
AirAsia chief Tony Fernandes has started making preparations for an early launch of the Indian subsidiary in which the Malaysian LCC, Tata Group and Telstra Tradeplace will have 49%, 30% and 21% stake respectively. Subject to getting the clearance from the aviation ministry, Chennai-based AirAsia India could take off as early as this summer with a fleet of three to four aircraft that would then be ramped up. Fernandes remains hopeful of an early nod and has already chosen an Indian as the JV's CEO and is looking at more recruitment.
"The good always win. People and companies with good intentions to create jobs and make life of the average man better will always win.... Fantastic range of candidates put in front of me by Tata and Sons. In my mind I can't believe the talent in India. Final call is Tata and Sons. Part of JV agreement but I know who my fave is. Hope they agree," Fernandes tweeted.
Once approved, AirAsia India will be the first real action after the government last year allowed foreign airlines to invest in Indian carriers. Captain G R Gopinath of Air Deccan fame is also planning to launch a start-up. Among existing airlines, Jet Airways is in advanced stage of talks with Abu Dhabi-based Etihad for investment. LCC SpiceJet and GoAir are also learnt to be in talks with foreign airlines. India's largest LCC IndiGo is being pursued by a number of foreign suitors but has so far not shown any interest in a stake sale. Grounded Kingfisher is yet to find an investor.
After the FIPB meeting, economic affairs secretary Arvind Mayaram said: "They will now have to take the necessary licence from the Directorate General of Civil Aviation (DGCA). They can start operating now once they get the licence."
However, getting the aviation ministry's nod could prove to be a time-consuming process as it requires some changes in the recently liberalized foreign direct investment (FDI) policy. "I welcome the proposed new airline. But, the policy of FDI cleared by the commerce ministry allows foreign airlines to invest in existing Indian carriers. FIPB may have cleared the proposal but it has to meet the existing requirements. Now the commerce ministry will have to change that rule and allow a startup FDI JV," aviation minister Ajit Singh told TOI, while terming it a "procedural issue that will not derail the proposal."
Aviation secretary K N Srivastava, who attended the FIPB meeting, is learnt to have raised this issue and sought clarification from the department of industrial policy and promotion. Aviation ministry officials point out that "procedural issues" in the proposed AirAsia India JV. "As of now no company has been formed in this joint venture. So, under the current FDI rule, we may not be able to clear it till the commerce ministry makes the required changes or tells us it can be cleared in the current form under the existing rules," said a senior official. However, Ajit Singh reiterated that there was no opposition to the proposed new airline and that the ministry has already sought commerce ministry views on this issue.
Tata Group chairman emeritus Ratant Tata tweeted: "FIPB approval of the airline project ... reflects the true investor friendly policies of the government. This and other similar actions will, without doubt, reinforce investor confidence in India. I applaud the government for its transparency and its principled implementation of the stated policy."
Highly placed sources say that the government is unlikely to allow any technical issue to delay the new airline despite stiff opposition from some influential existing carriers, since the AirAsia-Tata JV is being seen as a test case of India's commitment to attract foreign investors. In the past also, Tata Group's attempts to enter aviation space by tying up with Singapore Airlines were thwarted by a big Indian airline and the government is unlikely to allow a repeat this time.
AirAsia chief Tony Fernandes has started making preparations for an early launch of the Indian subsidiary in which the Malaysian LCC, Tata Group and Telstra Tradeplace will have 49%, 30% and 21% stake respectively. Subject to getting the clearance from the aviation ministry, Chennai-based AirAsia India could take off as early as this summer with a fleet of three to four aircraft that would then be ramped up. Fernandes remains hopeful of an early nod and has already chosen an Indian as the JV's CEO and is looking at more recruitment.
"The good always win. People and companies with good intentions to create jobs and make life of the average man better will always win.... Fantastic range of candidates put in front of me by Tata and Sons. In my mind I can't believe the talent in India. Final call is Tata and Sons. Part of JV agreement but I know who my fave is. Hope they agree," Fernandes tweeted.
Once approved, AirAsia India will be the first real action after the government last year allowed foreign airlines to invest in Indian carriers. Captain G R Gopinath of Air Deccan fame is also planning to launch a start-up. Among existing airlines, Jet Airways is in advanced stage of talks with Abu Dhabi-based Etihad for investment. LCC SpiceJet and GoAir are also learnt to be in talks with foreign airlines. India's largest LCC IndiGo is being pursued by a number of foreign suitors but has so far not shown any interest in a stake sale. Grounded Kingfisher is yet to find an investor.
Ashok Leyland sets up tech centre in UK
Chennai: Ashok Leyland has set up a technical centre in the UK to strengthen R&D and address new markets in South America and Africa.
Established at a technology park in Warwickshire, the centre will help Ashok Leyland develop capabilities to build products that are on par with stringent European standards and draw on the region’s wealth of technical skills, said Sam Burman, Chief Technology Officer, in e-mailed responses to Business Line.
The tech centre will serve as a hub for future products with enhanced safety features for which there isn’t sufficient know-how in India, whereas European manufacturers have been refining these features for a long time, said Burman. “We envisage a growing demand for products with enhanced safety features and high levels of customisation. Vehicle electronics will also start to play a more crucial role in overall product development.”
The company will hire 30 people at the tech centre. It is looking for professionals specialising in safety features such as airbags and roll-over protection cabs, and homologation (certifying a vehicle is road-worthy after it meets mandatory specifications) of trucks and buses for new markets in South America such as Brazil, Peru, Chile, Bolivia and in Africa.
The commercial vehicle maker currently exports to over 30 countries in SAARC markets of Sri Lanka and Bangladesh, West Asia, Africa and the CIS. Its revenue from international operations (Rs 1,600 crore) has doubled over the last two years.
The UK Tech Centre is a part of Ashok Leyland’s overall R&D initiatives, said Burman.
The company’s R&D spend in 2011-12 was 2.8 per cent of the turnover.
The global benchmark is 3-4 per cent. It has a technical research centre in Chennai, employing 1,200 people and catering to the domestic market.
Established at a technology park in Warwickshire, the centre will help Ashok Leyland develop capabilities to build products that are on par with stringent European standards and draw on the region’s wealth of technical skills, said Sam Burman, Chief Technology Officer, in e-mailed responses to Business Line.
The tech centre will serve as a hub for future products with enhanced safety features for which there isn’t sufficient know-how in India, whereas European manufacturers have been refining these features for a long time, said Burman. “We envisage a growing demand for products with enhanced safety features and high levels of customisation. Vehicle electronics will also start to play a more crucial role in overall product development.”
The company will hire 30 people at the tech centre. It is looking for professionals specialising in safety features such as airbags and roll-over protection cabs, and homologation (certifying a vehicle is road-worthy after it meets mandatory specifications) of trucks and buses for new markets in South America such as Brazil, Peru, Chile, Bolivia and in Africa.
The commercial vehicle maker currently exports to over 30 countries in SAARC markets of Sri Lanka and Bangladesh, West Asia, Africa and the CIS. Its revenue from international operations (Rs 1,600 crore) has doubled over the last two years.
The UK Tech Centre is a part of Ashok Leyland’s overall R&D initiatives, said Burman.
The company’s R&D spend in 2011-12 was 2.8 per cent of the turnover.
The global benchmark is 3-4 per cent. It has a technical research centre in Chennai, employing 1,200 people and catering to the domestic market.
Elder Pharma inks pact with Japanese firm for cosmetics
Mumbai: To tap into the changing world of women’s fashion and taste in cosmetics, drug-maker Elder Pharmaceuticals has forged its maiden joint venture with Japanese firm Kose Corporation.
“It is a completely different area for us,” Elder Pharma Joint Managing Director Alok Saxena told Business Line, adding that Elder would make the specialised cosmetics at its Paonta Sahib plant, in Himachal Pradesh.
Elder has in the past followed the strategy of in-licencing products from foreign companies. The departure this time to form a joint-venture format was because of the huge opportunity in the domestic market, he said.
The product portfolio includes skincare and body care products, he said, adding that they were over-the-counter (OTC) products.
The Japanese firm will hold 60 per cent equity in the venture, and Elder the remaining 40 per cent.
The reason the cosmetic tie-up happened with the Rs 1,350-crore Elder Pharma and not its healthcare arm, was because the Japanese company needed specialised manufacturing, something the pharma company was familiar with, he said.
The cosmetics, to be made locally, will be in the market in three months, he added.
“It is a completely different area for us,” Elder Pharma Joint Managing Director Alok Saxena told Business Line, adding that Elder would make the specialised cosmetics at its Paonta Sahib plant, in Himachal Pradesh.
Elder has in the past followed the strategy of in-licencing products from foreign companies. The departure this time to form a joint-venture format was because of the huge opportunity in the domestic market, he said.
The product portfolio includes skincare and body care products, he said, adding that they were over-the-counter (OTC) products.
The Japanese firm will hold 60 per cent equity in the venture, and Elder the remaining 40 per cent.
The reason the cosmetic tie-up happened with the Rs 1,350-crore Elder Pharma and not its healthcare arm, was because the Japanese company needed specialised manufacturing, something the pharma company was familiar with, he said.
The cosmetics, to be made locally, will be in the market in three months, he added.
Share of goods exports rises to 17.7% of GDP
New Delhi: Despite a slowdown in global demand for goods, the share of India’s merchandise exports has increased to 17.7 per cent in 2011-12 from 13.9 per cent in 2009-10. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry D. Purandeswari said there has been a continuous upward movement of percentage share of merchandise exports in the overall GDP of India which showed that it played an important role in the economic development of the country. The percentage share of merchandise exports in the overall GDP of India from increased from 13.9 per cent in 2009-10 to 16 per cent in 2010-11 and 17.7 per cent in 2011-12, she said. The Minister also pointed out that as per WTO trade statistics, India’s share in the total global exports has also been increasing since 2007. “The long-term vision of the Government is to make India a major player in world trade and assume a role of leadership in international trade organisations commensurate with India’s growing importance,” Purandeswari said.
Subscribe to:
Posts (Atom)