Infosys BPO opens centre in Costa Rica

Bengaluru: Infosys BPO has opened a call centre in Costa Rica, which is considered as the fourth best outsourcing destination in Latin America.

The BPO arm of the $7-billion software exporter will open the new call centre in San Jose, Costa Rica and will have 100 employees, according to a company statement.

These employees initially will provide services to sourcing and procurement for Procter & Gamble, the world's largest consumer packaged goods company. According to advisory firm Tholons, Costa Rica follows Brazil, Argentina and Chile as an outsourcing destination in South American continent.

Further, Infosys BPO will offer a range of BPO services in Costa Rica for its global clients in areas including finance and accounting, human resources management, analytics, legal processes, customer relationship services, marketing, and supply chain management.

Humberto Andrade, Head - Latin America, Infosys BPO, said: “This centre is our latest effort to expand global footprint. It will strengthen our presence in Latin America and will address not only our global clients here but also Spanish- and Portuguese-speaking markets.

India-Czech to Collaborate in Advanced Manufacturing

Anand Sharma Invites Czech Automotive Companies to Nmizs
New Delhi: Acknowledging the Czech expertise in the field of engineering sector, especially automotives, the Union Minister for Commerce, Industry & Textiles Shri Anand Sharma, in a meeting with Mr. Martin Kuba, Czech Minister of Industry & Trade, invited Czech investment into the proposed National Investment Manufacturing Zones in India. “Owing to the fact that the Czech Republic is strong in manufacturing generally and heavy engineering in particular – metallurgy, machine tools, defence equipment, we invite its automotives which accounts for 24 per cent of Czech manufacturing, to invest in NIMZs in India,” conveyed Shri Sharma to Mr. Kuba in the meeting held here today.

Shri Sharma, while appreciating the reputation of the Czech Republic in the field of technology, emphasised the need for institutional engagement for collaboration in the field of science and technology. “The thrust in our bilateral ties would be to focus on accelerating cooperation in advanced and niche technologies in which the Czech Republic has special capabilities,” said Shri Sharma. The Indian Minister also expressed satisfaction at the ongoing projects in the field of lasers and put stress on the need for bright engineers and scientists from both countries to be provided an enabling environment by the Czech and Indian sides to further cooperation in high technology areas.

While discussing the issue of cooperation in metal-cutting machine tools, Shri Sharma conveyed to the Czech Minister the opportunities the Czech companies could explore for collaborations with Indian companies. Shri Sharma also apprised Mr. Kuba about the participation of Czech companies in the Indian Metal-cutting Machine Tool exhibition (IMTEX), which was held in Bangalore from January 24-30, 2013. Thirteen Czech companies participated in IMTEX 2013, which is the largest exhibition of metal-cutting machine tools in South and South-East Asia which showcases exhaustive range of innovations in the product segment of metal-cutting machine tools.

The two Ministers also discussed issues regarding defence cooperation. Shri Sharma conveyed to the Czech Minister that both the countries could build an enduring defence relationship that could include joint research, development and production of weapons systems. “The rapid up-gradation of Czech industry, defense production facilities make state-of-the-art products namely defence equipment, passive and active electronic intelligence & surveillance systems, radars, trainer aircraft, high-mobility all purpose vehicles, modernisation of Soviet-era tanks, field hospitals and logistics open gives leverage to the strong Czech interest in promoting sales to India in these areas of specialisation,” said Shri Sharma.

Minister Sharma further said that a Joint Working Group (JWG) on Advanced Manufacturing and Heavy Engineering is scheduled later this month. He also conveyed that a JWG on Skills and Innovation and on Mining are expected to take place later this year.

The total bilateral trade between India and the Czech Republic in 2012 stood at USD 957.47 million as compared to USD 992.42 million in 2011. Shri Sharma said that although there has been some decline in bilateral trade figures, due to the global economic scenario, “the outlook for the future is promising and avenues in job producing manufacturing units in both the countries should be seriously explored.”

Advertising group Publicis acquires digital agency Convonix

Mumbai: French advertising major PublicisGroupe said it has acquired Mumbai-based Convonix, a digital marketing and consulting firm cementing its place in the fast growing digital space. Convonix will align with StarcomMediaVest here in India, the advertising group said Monday. Convonix's strength lies in search, social and analytics, a company statement said adding that this will combine well with Starcom's expertise in media strategy.

Convonix's geographical presence in India will expand to Delhi, Bangalore and Chennai besides Mumbai post the acquisition. The Publicis group has over the last year made a number of acquisitions including Indigo Consulting, Resultrix , iStrat and MarketGate. It aims at doubling its size in India between 2010 and 2015 taking on its biggest rival WPP in the local market.

Founded in 2003, Convonix 's three founding members; Vishal Sampat, CEO; Sarfaraz Khimani, co-COO; and Pallav Jain, co-COO, will continue to lead the agency. Convonix will now operate as Starcome MediaVest Convonix, with two market-facing brands: SMG Digital and Convonix.

"Convonix has continued to innovate and build the very best digital capability whilst being highly respected for its ability to recruit the best talent from universities each year, and transform them into digital advertising experts through a rigorous training program," said Laura Desmond, global chief executive officer for Starcom MediaVest Group.

According to the latest ZenithOptimedia adspend forecast, search marketing continues to expand rapidly in India and is forecast to increase 35% in the region during 2013, and more than 70% in the next two years. Vishal Sampat, CEO for Convonix said, "We have built our reputation by focusing on talent, training, technology and performance, and doing so has enabled us to rapidly evolve with the consumer. Aligning with Starcom MediaVest group gives us global scale and a more powerful face to the market which we can leverage to constantly improve our offering and give our clients the best tools and solutions available."

Srikant Sastri, VivaKi' country chair for India who is presiding over the acquisition and transition of Convonix said, "We are positive that this acquisition will set the tone for our next phase of digital pre-eminence both in terms of expertise and revenue and we are continuing to explore other agencies that can help us capitalize on the outstanding potential of the digital marketplace in India."

Berger Paints acquires Sherwin Williams' decorative business

Mumbai: Berger Paints has acquired the decorative business of US-based Sherwin Williams Paints’ Indian subsidiary for an undisclosed amount.

The acquisition, carried out through Berger’s wholly owned subsidiary Brushworks, was funded through internal accruals. This will help the Kolkata-based paint major to strengthen its position in decorative or the architectural paint business.

Berger’s Managing Director Abhijit Roy said, “The acquisition will increase our presence in South India through their dealer network. Sherwin Williams has a strong foothold in the southern market. It will also help increase our overall capacity and attain a market share of 24 per cent.”

However, Sherwin Williams will continue to compete with Berger on the industrial paint division. It entered into the Indian market three to four years ago with the purchase of the business of Nitco Paints.

When asked, whether Berger was considering a complete takeover of all the businesses of Sherwin Williams (SW), Roy said “It was they (SW) who approached us with the takeover, so if they find any synergy in the industrial business, we might consider it too.”

The company also said that it is investing Rs 240 crore in the expansion of its manufacturing units over three years. Of this, it will invest Rs 180 crore in construction of a greenfield unit at Hindupur in Andhra Pradesh with a capacity of, 6000 tonnes a month. The rest will be used in the expansion of existing units in Rishra in West Bengal and Goa.

Berger, with an annual turnover of Rs 1,000 crore, has a production capacity of 24,000 tonnes a month across seven units. With the new unit at Hindupur and acquisition of Sherwin Williams’ Taloja plant, it is likely to go up to 36,000 tonnes a month.

Meanwhile, the company’s shares hit a new high at Rs 210 in intra-day trading on Monday but closed at Rs 206 .85, up 2.66 per cent on the BSE.

GVK, Aurizon to develop Oz basin infrastructure

Hyderabad: GVK Coal Infrastructure (Singapore) Pte Limited (GVK Hancock) and Aurizon, Australia's largest rail freight company, have signed an agreement on joint development of rail and port infrastructure to unlock the Galilee Basin reserves in that country, including GVK Hancock's Alpha, Kevin's Corner and Alpha West coal mines.

The agreement also envisages a process to support the next phase of coal growth in the Bowen Basin, which contains the largest coal reserves in Australia.

According to a GVK statement today, Aurizon would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure, which owns GVK Hancock's rail and port projects. It would invest through an upfront consideration at completion of the transaction and deferred consideration at the financial close of each phase of the projects.

Both companies will have equal management rights and an equal representation on the board of all key committees. The chairman of the board will be G V K Reddy.

GVK Hancock and Aurizon are seeking development of a potential 60 mtpa (million tonne per annum) port and rail project to underpin the opening of reserves in the Galilee Basin and continued growth of the Bowen Basin.

Projects planned comprise a new rail project and development rights for a coal terminal at Abbot Point. GVK Hancock received the primary state and federal environmental approvals for the rail project in May and August 2012, respectively. GVK Hancock's port project received federal environmental approval in October 2012.

Collectively, the proposed development of the rail and port infrastructure, expected to deliver export capacity of 60 mtpa, could represent an investment for the state of Queensland of $6 billion, the staement said.

On completion of the transaction, Aurizon would gain the rights to operate and jointly manage with GVK the rail infrastructure and to exclusively provide the above rail haulage from GVK Hancock's Alpha and Kevin's Corner mines for up to 60 mtpa of coal.

"The proposed relationship with Aurizon would allow us to jointly develop the most cost and time-efficient rail and port solutions for the Galilee Basin. At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close," said G V Sanjay Reddy, vice-chairman of GVK.

CIl proposes Rs 25,400.00 crore's investment for coal production

New Delhi: Coal India Limited (CIL) has proposed for an investment/ capital outlay of Rs. 25,400.00 crore for the Twelfth Five Year Plan, the details of which are:

Fig. in Rs. Crore

Scheme XII Plan Investment Proposed
Existing Mines & Completed Projects 4484.62
Ongoing Projects 11385.05
New Projects 2490.94
Sub Total (Mining) 18360.62
Non Mining & Others 7039.38
Grand Total 25400.00
This information was given by Shri Pratik PrakashBapu Patil, Minister of state for coal in a written reply in Rajya Sabha today. He said that CIL has proposed an ad-hoc provision of Rs. 35,000 crore for acquisition and development of coal assets abroad during the XIIth Plan period. Out of the aforesaid amount Rs. 10,000 crore has been allotted for exploration and development of 2 allotted coal blocks and creation of logistic infrastructure in Mozambique and the balance Rs.25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia, etc. The exploration activities are in progress in the allotted two coal blocks in Mozambique. Further, CIL has issued a notice on 27th February, 2013 inviting proposals from investment bankers, owners/ representatives for acquisition of coal assets abroad.

The Minister added that the annual production expected from coal assets acquired / to be acquired abroad would depend upon the specific production potential of each of such coal block or mine. At this stage it will not be possible to estimate the quantity of additional annual coal production arising out of investment of Rs 35,000 crore.

The decision regarding use of additional production envisaged and the companies to whom such coal will be sold would depend upon the type/quality of saleable coal available from CIL & mines in Mozambique and other coal assets expected to be acquired in other countries.

India-Australia free trade pact can deepen ties

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).

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."

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.

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.