Orchid Chem in pact with European firm for antibiotics

Chennai: Chennai-based Orchid Chemicals and Pharmaceuticals has entered into a partnership with Europe-based Allecra Therapeutics to develop antibiotics to combat multi-drug resistant bacterial infections.

Orchid will give Allecra intellectual property related to an antibiotic discovery programme.

Orchid has been engaged in pre-clinical trials of this molecule with which Allecra will carry out further trials, said a press release.

Under the terms of the agreement, Orchid will be paid $1 million up front and is eligible to receive further royalties and exit bonuses based on Allecra’s progress.

Allecra has bagged €15 million in a Series A financing round, co-led by Edmond de Rothschild Investment Partners and Forbion Capital Partners. EMBL Ventures also participated.

When the funding comes through, Orchid will receive 20 per cent stake in Allecra.

Orchid was represented by the law firm Latham and Watkins in this agreement.

Orchid’s shares closed 1.35 per cent higher on the BSE, on Thursday, at Rs 67.80.

VW sets up unit to export parts of Vento, Polo

Pune: Volkswagen India Pvt Ltd has set up a unit to manufacture and package parts of the Vento and Polo for export at its Pune plant.

Announcing the inauguration of the parts and components Business Unit, the company said it has invested around Rs 56 crore to develop it.

The company added that it will begin with export to Malaysia.

The Indian export parts will contribute to approximately 70 per cent of the car which will then be assembled for the local market at the DRB Hicom Plant.

Volkswagen India has been exporting cars from Pune since last year as fully built units to markets such as South Africa, Sri Lanka, Nepal, Bangladesh, Malaysia and the left-hand drive version of the VW Vento to West Asia.

About 215 new jobs will be created in the parts and components BU at Volkswagen and its suppliers.

“Apart from the Malaysian market, if there is a demand from any other region for parts and components, we are on the pole position to support,” said Andreas Lauenroth, Executive Director Technical, Volkswagen India.

Localisation
Currently, Volkswagen cars in India are localised to the extent of 70 per cent, and the company has plans to localise further by building engines and gear boxes, if the volumes support this.

“It will be the next logical step if the numbers grow,” said Alexander Skibbe, spokesperson for VW India.

RINL to set up Rs 1,000-cr plant in AP

Visakhapatnam: Rashtriya Ispat Nigam Ltd will set up a Rs 1,000-crore beneficiation plant at Bayyaram in Khammam district of Andhra Pradesh, as the State Government has agreed in-principle to allot 5,342 hectares of iron ore mines to the Visakhapatnam steel plant.

In a statement issued here on Thursday, RINL Chairman and Managing Director A.P Choudhary, hailed the decision of Chief Minister N. Kiran Kumar Reddy.

The State Govenment will allot iron ore mines to RINL-VSP, spread over an area of 2,500 hectares at Guduru in Warangal district, 2,500 hectares at Bayyaram in Khammam district and 342 hectares at Bheemadevarapalli in Karimnagar district.

He described it as “a historic moment for RINL’’ and recalled the positive response by the Chief Minister when the RINL had approached the State Government for allotment of captive iron ore mines.

He said the CM had taken special interest for the benefit of RINL and for the rapid growth of steel industry in Andhra Pradesh.

Choudhary further said that the move would strengthen RINL’s expansion plans to become 20 mtpa plant, the largest plant in a single location.

He said that as there was no scientific exploration taken up by any of the Government agencies in these allotted mining areas, it would be taken up shortly by RINL-VSP to assess the quantity and quality of iron ore available.

He said RINL would be investing around Rs 1,000 crore for the development of mines which would create employment for around 1,000 people, both direct and indirect.

Choudhary also requested the State Government to take forward the proposal to the Union Government as early as possible for getting the necessary clearances from the Union Ministry of Mines.

Hennes and Mauritz seeks FIPB nod to invest Rs 720 crore in retail business in India

Mumbai/ New Delhi: Swedish fast-fashion retail giant Hennes and Mauritz, or H&M, has sought permission from the Foreign Investment Promotion Board to invest Rs 720 crore (approx 100 million) in India to start a fully-owned company that will open 50 H&M stores.

Faced with stagnating or slowing sales in key European and US markets, the world's second-largest apparel retailer by sales, has been eyeing emerging economies, including India, for a while.

If the proposal is approved, India will be the 50th market for H&M that had sales of $18 billion in 2012 from its over 2,800 stores globally. The application was filed with FIPB, a unit of the finance ministry that clears foreign direct investment proposals, on Thursday through law firm Titus and Co.

The retail giant says in its application it will fulfil all conditions of the country's single-brand retail policy that includes sourcing locally 30% of the total value of the goods purchased.

It also assured it will not retail goods using the e-commerce platform. During his visit in February, while meeting commerce and industry minister Anand Sharma, H&M chief executive Karl-Johan Persson labelled India as a "very interesting" market.

"It's a huge market. We are not there yet. More than a billion people live in India and in Sweden we are only 9 million but we have 150 stores (in Sweden)," Persson had said.

H&M will engage in import, export, marketing, distribution, warehousing, manufacture, production and retail trade of products carrying the H&M brand. If its application is approved, it will sell 10 categories of products in India such as clothes, footwear, cosmetics, handbags and fashion accessories, home furnishing, home decoration, toys, kitchen utensils and cutlery among others.

In India, H&M's biggest rival and world leader in sales, Zara achieved break-even within the first year of its launch and has annual sales of Rs 260 crore from nine stores. Several other brands such as Levi's haven't been so lucky and are still reeling under losses despite their decade old presence.

Experts feel that H&M's global model is very similar to Zara —that of quickly duplicating and replicating fast fashion —a key reason why even the Swedish brand should click with the Indian consumers.

"They cater to the mid-premium apparel segment which is one of the fastest growing categories even with a high base. H&M's global supply chain model is amenable to the Indian context from shorter cycle replenishment and local sourcing," said Abheek Singhi, partner and director at Boston Consulting Group.

H&M follows in the footsteps of its Scandinavian peer, IKEA, which is currently waiting for the final approval to open 25 stores with an investment of Rs 10,500 crore.

After six years of restricting foreign ownership in single-brand retail companies to 51%, India removed this sectoral cap in January and allowed global brands such as IKEA and Zara, which sell a variety of products under a single label to set up fully-owned companies in India. The original policy change came with a requirement of 30% local sourcing, but the government diluted that condition after overseas firms said it was not feasible.

More than one dozen single brand retailers are said to be sizing up the Indian market for entry, many of them in various stages of researching, partner scouting or filing for government approvals. Some of these are direct rivals of H&M including the largest casual wear retailer in the United States, Gap Inc, French apparel retailer Celio and Japanese fashion brand Uniqlo.

D Purandeswari inaugurates India Show in Panama

New Delhi: The Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari today inaugurated the India Show in Panama. Speaking during the inauguration, the Indian Minister emphasised on enhanced cooperation and engagements between India and Panama. She exhorted the business leaders of both the sides to increase the trade and investments to next level.

She also emphasised that the visa regime between two countries should be liberalised besides a general Memorandum of Understanding (MoU) for trade and economic cooperation between both the countries may be signed.

Mr. Ricardo Antonio Quijano Jimenez, Commerce and Industry Minister of Panama, Mr. Irvin A. Halman, President of Panama Chambers of Commerce, and Indian Ambassador to Panama Mr. Yogeshwar Varma, were also present during the inauguration of India Show.

Before the India Show, Dr. D Purandeswari also participated in the Expocomer Fair 2013 of Panama. Expocomer fair was inaugurated by Mr. Ricardo Martinelli, President of Panama. Others present included Governor of Pueto Rico, various ministers of government of Panama and representatives of Panama Chambers of Commerce and CII.

Dr. D Purandeswari also expressed that Panama should conduct a road show in India shortly and exchange of business delegations between both the countries should also take place.

BMW to make MINI Countryman in Chennai

Chennai: BMW’s Chennai plant will soon become the first one outside Europe to manufacture the luxury car maker’s compact sports utility vehicle (SUV) the MINI Countryman.

Production of the compact SUV will start next month and it will start hitting the roads by the end of the year, said Robert Frittrang, managing director, BMW India. The move to expand the company’s international production network is in response to the growing demand for premium MINI cars, BMW said in a statement.

When the company starts production, MINI will be India’s first locally-manufactured premium small car. The firm expects significant growth over the medium- and long-term. According to the company, Chennai-manufactured MINI will fulfil the same quality standards that apply to BMW Group models worldwide. BMW also expects local production of MINI could improve its demand in India.

“It is a very good product for Indian road condition, with high ground clearance. It is also a car in which five persons can travel comfortably,” Frittrang told reporters on the sidelines of the convocation ceremony of Indo-German Training Centre, Chennai.

The locally-produced vehicle will be introduced in two diesel variants - MINI Cooper D Countryman and MINI Cooper D Countryman High. Another petrol variant, MINI One Countryman, will also be produced at Chennai. Since 2007, the company has invested around ^60 million in India.

The other petrol variants - MINI Cooper S Countryman and MINI Cooper S Countryman High – will be imported in India as completely built-up units (CBUs).

The price of the vehicles range from Rs 26.60 lakh to Rs 37.50 lakh.

At present, the compact SUV is manufactured at Oxford in UK and in Austria.

India is the 100th market in the global MINI sales network and has become increasingly significant for the BMW Group since establishing its presence in India from 2007. From January 2012, MINI has continued to grow its presence in India and has established five exclusive outlets across Delhi, Mumbai, Hyderabad and Bangalore.

In March 2007, BMW India officially opened its production plant in Chennai. The existing facility in a 40-acre land in Mahindra World City, about 50 kms away from Chennai city, has a capacity to manufacture 11,000 units a year, in two shifts, said Frittrang.

At present, BMW’s Chennai plant produces BMW 3 Series, BMW 5 Series, BMW X1, and BMW X3. In 2013, the plant will also produce BMW 7 series and BMW 1 series.

Coca-Cola to set up Rs 600 crore plant near Dehradun

Dehradun: Uttarakhand government on Wednesday oversaw the signing of a Memorandum Of Understanding between State Industrial and Infrastructure Development Corporation of Uttarakhand Ltd (SIDCUL) and Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL).

The MOU was signed to set up Rs 600 crore manufacturing plant in Dehradun's Vikas Nagar Tehsil. The manufacturing plant will be spread over 60 acres producing non-alcoholic carbonated beverages, juices, fruit-based drinks and packages of drinking water.

The MOU was signed between SIDCUL's managing director Rakesh Sharma and HCCBPL's executive director Shukla Wasan.

Chief minister Bahuguna was present at the event and said that the government has already allotted land for setting up the manufacturing plant. HCCBPL will invest Rs 6000 crore to establish the plant in two phases, he added.

Bahuguna further added that this deal will attract more business houses and mega companies to invest in state. He said that the government launched SIDCUL- phase 2 to attract investment for development of Uttarakhand and that several there is considerable interest in the state as the crime rate is low.

"We hope to attract more investment in state in the days to come," he said.

HCCBPL vice-president Patrick George handed over a check of Rs 1.60 crore as earnest money and processing charges to Bahuguna.

Essar Energy joins UN corporate responsibility project

Mumbai: Essar Energy has announced that it has become a signatory to the United Nations Global Compact (UNGC), which is a voluntary corporate responsibility initiative, with over 10,000 corporate participants and other stakeholders from over 130 countries.

The UNGC is also a strategic policy measure for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption.

The company, in a press release, said that it is committed to adopting a globally recognised policy framework, for the development, implementation and disclosure of environmental, social and governance policies and practices.

Cipla launches first biosimilar for rheumatic disorders

Mumbai: Drug maker Cipla has locally rolled out its first biosimilar, Etanercept, used to treat rheumatic disorders.

Formed through a partnership alliance, the drug sold under the Etacept brandname will be manufactured by China-based Shanghai CP Guojian Pharmaceutical Co and marketed by Cipla in India, a note from Cipla said.

Rheumatic disorders
The introduction of Etacept now signals Cipla’s entry into the biologics segment offering an option to the patients suffering from rheumatic disorders at a lower cost.

Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints. It can lead to joint damage and deformities.

If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality. However, rheumatic disorders can be controlled by early diagnosis and treatment, the note explained.

Etacept is available as a powder to be given by subcutaneous injection, and is available with stockists across the country at Rs 6,150.

Cipla’s Medical Director Dr Jaideep Gogtay said: “The higher cost of biologics has been a major hindrance, limiting its affordability and accessibility to millions of patients. We believe that introducing Etacept at a lower cost (30 per cent lesser compared to the innovator) will enable access of this drug to a greater number of patients in India. This can be enhanced further if we consider the results of a recent study that showed in patients, who were successfully treated with Etanercept for six months, a 50 per cent reduced dose worked just as well as continuing the current dose.”

Anti-rheumatic drugs
At present, there are disease-modifying anti-rheumatic drugs which are considered to be the first line of treatment for rheumatic disorders. However, approximately 40 per cent of the patients are not controlled on these drugs.

In such cases, biologics like Etanercept play a significant role in controlling the disease activity and make a positive difference in the lives of these patients, the company said.

Inflammation, joint damage
Etacept contains Etanercept, a biologic produced by recombinant DNA technology. Etacept (Etanercept) binds to TNF-α, a cytokine that plays a very important role in inflammation and joint damage in rheumatic disorders. It helps in modifying the course of the disease and prevents further damage to the joints.

Etacept (Etanercept) is approved in the management of rheumatic disorders like Rheumatoid Arthritis, Ankylosing Spondylitis, Juvenile Idiopathic Rheumatoid Arthritis and Psoriatic Arthritis, the company said.

Since its launch in 2006 in China by Shanghai CP Guojian Pharmaceutical Co, over 50,000 patients have been treated with Etanercept. Clinical efficacy and safety of the drug have also been well established in Indian patients, Cipa said.

What is rheumatic disorder?
Rheumatic disorders are chronic inflammatory disorders affecting the joints, characterised by pain, redness, swelling and loss of function in several joints.

It can lead to joint damage and deformities.

If left undiagnosed and untreated, this could lead to permanent disability and at times could lead to mortality.

However, rheumatic disorders can be controlled by early diagnosis and treatment, the company explained. At present, there are disease modifying anti-rheumatic drugs which are considered to be the first line of treatment for the problem.

However, approximately 40 per cent of the patients are not on these drugs.

In such cases, biologics like Etanercept play a significant role in controlling the disease and make a positive difference in the lives of these patients.

Commodity-wise freight revenue by Railways goes up by 22.95 per cent during fiscal2012-13

New Delhi: The Railways have generated Rs. 84791.06 crore of revenue earnings from commodity-wise freight traffic during fiscal 2012-13 as compared to Rs. 68965.44 crore during the corresponding period last year, registering an increase of 22.95 per cent. Railways carried 1009.83 million tonnes of commodity-wise freight traffic during financial year 2012-13 as compared to 969.78 million tonnes carried during the corresponding period last year, registering an increase of 4.13 per cent.

Out of the total earnings of Rs. 7749.94 crore from commodity-wise freight traffic during the month of March 2013, Rs. 3608.30 crore came from transportation of 48.79 million tonnes of coal, followed by Rs. 738.58 crore from 10.35 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 876.12 crore from 11.05 million tonnes of cement, Rs. 744.77 crore from 5.24 million tonnes of foodgrains, Rs. 409.49 crore from 3.55 million tonnes of petroleum oil and lubricant (POL), Rs. 506.98 crore from 3.37 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 313.09 crore from 3.10 million tonnes of fertilizers, Rs. 139.51 crore from 1.56 million tonnes of raw material for steel plants except iron ore, Rs. 393.70 crore from 3.85 million tonnes by container service and Rs. 630.04 crore from 7.46 million tonnes of other goods.