Mumbai: International coffee retailers are brewing plans to launch more outlets, especially in smaller towns and cities. Discretionary spending may be low, but coffee chains are eyeing tier- 2 and -3 cities to beat the high saturation levels and rentals in the metros.
While UK-chain Costa Coffee is gearing up to enter towns such as Ludhiana and Jalandhar in Punjab, Australia’s Di Bella Coffee recently launched a 5,000 sq. ft. outlet in Hyderabad, its largest.
“High rentals are a challenge, but that is not going to stop us from opening 40-50 stores a year and entering more cities in Punjab,” says Santhosh Unni, Managing Director, Costa Coffee. With 107 outlets, the coffee chain intends crossing 150 outlets this year, and emerging as the second largest player after CCD (Cafe Coffee Day).
Di Bella Coffee has two flagship stores measuring 3,000 sq. ft. and 5,000 sq. ft. in Hyderabad. “High rentals and saturation in cities like Mumbai has made us enter tier-2 and -3 cities, which are still not exposed to international coffee chains. There have been great sales out of Hyderabad as the city still does not have an international coffee chain. At 5,000 sq. ft., we are the largest coffee retail outlet in the country,” says Sachin Sabharwal, Managing Director, Di Bella Coffee.
No slowing down
Considering that the last quarter has been challenging for quick service restaurants, coffee chains do not believe in slowing down. “Discretionary spends have been down since the last quarter, but the boom in retail is still happening, which will offset it,” adds Sabharwal. Di Bella Coffee has ten outlets in Mumbai.
Meanwhile, CityMax Hospitality, the master franchise for Gloria Jeans Coffee, plans to open at least 15-20 stores a year. While it is present in Mumbai and Delhi as well as smaller cities such as Pune and Ahmedabad, more tier-2 city launches are on the anvil.
Much potential
As Vishal Sawhney, President, City Max Hospitality says, “Coffee retail is still a huge market and there is demand. After tier 1 cities, we need to expand more into tier-2 and -3 cities.”
Last week, Pan India Food Solutions, the master franchise for the Coffee Bean and Tea Leaf, entered Punjab with two stores in Chandigarh. “We intend opening one store every 3-4 weeks as there is demand for local area coffee formats even in smaller cities such as Chandigarh,” adds K.S. Narayanan, Chief Executive Officer, Pan India Food Solutions.
Success in my Habit
Wednesday, May 8, 2013
Committee to devise a PPP policy with CIL setup
New Delhi: The Union Government has envisaged that one of the ways forward to reduce the dependence on imports is to devise a Public Private Partnership (PPP) policy framework with CIL as one of the partners in order to increase the production of coal for supply to power producers and other consumers. Accordingly the Ministry of Coal has set up a Committee to devise a PPP Policy framework with CIL as one of the partners in order to increase production of coal, This information was given by the Minister of State for Coal, Shri Pratik PrakashBapu Patil in a written reply in Rajya Sabha here today.
The Minister said that besides this, the Government has taken following measures to further step up domestic production which includes:
Emphasis on modernization and technology development and coal quality improvement.
Emphasis on infrastructure development.
Periodical review of development of coal blocks.
Development of some of the coal blocks assigned to CIL through engaging Mine Development & Operator (MDO).
Periodical review of on going projects.
Constant persuasion with Ministry of Railways for expeditious implementation of critical rail lines & improved supply of rakes.
Regular persuasion with the State Governments on the pending issues and law & order problems.
Regular interaction with line Ministries and State Governments for clearing Environment and Forest clearances for new projects.
The actual coal production and annual targets fixed for Coal India Limited for the last five years is as follow:
(in million tones)
Year Coal India Limited
Target Actual (%) Achievement
2008-09 405.00 403.73 99.7
2009-10 435.00 431.26 99.1
2010-11 460.50 431.32 93.7
2011-12 447.00 435.84 97.5
2012-13* 464.10 452.19 97.4
The Minister said that besides this, the Government has taken following measures to further step up domestic production which includes:
Emphasis on modernization and technology development and coal quality improvement.
Emphasis on infrastructure development.
Periodical review of development of coal blocks.
Development of some of the coal blocks assigned to CIL through engaging Mine Development & Operator (MDO).
Periodical review of on going projects.
Constant persuasion with Ministry of Railways for expeditious implementation of critical rail lines & improved supply of rakes.
Regular persuasion with the State Governments on the pending issues and law & order problems.
Regular interaction with line Ministries and State Governments for clearing Environment and Forest clearances for new projects.
The actual coal production and annual targets fixed for Coal India Limited for the last five years is as follow:
(in million tones)
Year Coal India Limited
Target Actual (%) Achievement
2008-09 405.00 403.73 99.7
2009-10 435.00 431.26 99.1
2010-11 460.50 431.32 93.7
2011-12 447.00 435.84 97.5
2012-13* 464.10 452.19 97.4
Monday, May 6, 2013
Tanishq plans to pump in Rs 1,000 cr for expansion
Kolkata: Tanishq, the jewellery wing of Titan Industries Ltd, plans to invest more than Rs 1,000 crore to expand its network across the country this fiscal.
Brand Tanishq, the $1-billion turnover from the Tatas, will add 29 outlets during this period to its existing 146 stores.
“We have a plan to invest to upward of Rs 1,000 crore to expand our network nationally,” V Ganesh, Associate Vice-President, Titan Industries Ltd, told reporters here on Saturday.
At a launch function of the limited edition Rabindranath Tagore’s image engraved gold coins to mark the 152 {+n} {+d} birth anniversary of the legendary poet. These gold coins will be available in three variants – 2 gm, 5 gm and 8 gm. The coin will come with albums of Tagore’s songs and rare photos.
Tanishq claims to control about 80 per cent of the organised jewellery market.
Ganesh said that Tanishq earmarked 20 per cent of the total investment in the region. “We will invest about Rs 200 crore in east, including the north-eastern market,” he said.
Tanishq is in the process of adding 10 more outlets in the eastern region this fiscal.
Brand Tanishq, the $1-billion turnover from the Tatas, will add 29 outlets during this period to its existing 146 stores.
“We have a plan to invest to upward of Rs 1,000 crore to expand our network nationally,” V Ganesh, Associate Vice-President, Titan Industries Ltd, told reporters here on Saturday.
At a launch function of the limited edition Rabindranath Tagore’s image engraved gold coins to mark the 152 {+n} {+d} birth anniversary of the legendary poet. These gold coins will be available in three variants – 2 gm, 5 gm and 8 gm. The coin will come with albums of Tagore’s songs and rare photos.
Tanishq claims to control about 80 per cent of the organised jewellery market.
Ganesh said that Tanishq earmarked 20 per cent of the total investment in the region. “We will invest about Rs 200 crore in east, including the north-eastern market,” he said.
Tanishq is in the process of adding 10 more outlets in the eastern region this fiscal.
Aurobindo gets USFDA nod for 2 drugs
Hyderabad: Aurobindo Pharma Ltd has received final approvals from the US Food & Drug Administration (USFDA) to manufacture and market Tamsulosin Hydrochloride Capsules and Clindamycin Palmitate Hydrochloride for Oral Solution.
Tamsulosin Hydrochloride Capsule is the generic equivalent of Boehringer Ingelheim Pharmaceuticals’ Flomax Capsules and is indicated for the treatment of symptoms of an enlarged prostate (Benign Prostatic Hyperplasia - BPH) in men.
Clindamycin Palmitate Hydrochloride for Oral Solution is the generic equivalent of Pharmacia & Upjohn’s Cleocin Pediatric. It is indicated in the treatment of serious infections caused by susceptible anaerobic bacteria in infants.
The products would be launched soon, the Hyderabad-based company said in a release on Saturday.
Tamsulosin Hydrochloride Capsule is the generic equivalent of Boehringer Ingelheim Pharmaceuticals’ Flomax Capsules and is indicated for the treatment of symptoms of an enlarged prostate (Benign Prostatic Hyperplasia - BPH) in men.
Clindamycin Palmitate Hydrochloride for Oral Solution is the generic equivalent of Pharmacia & Upjohn’s Cleocin Pediatric. It is indicated in the treatment of serious infections caused by susceptible anaerobic bacteria in infants.
The products would be launched soon, the Hyderabad-based company said in a release on Saturday.
Smith & Nephew buys Indian surgicals company for Rs 380 crore
Bangalore: The $4.1 billion Smith & Nephew plc, a global medical technology provider, has acquired Sushrut Surgicals Private Limited, along with its brands and assets, for a consideration of roughly $70 million, or Rs 380 crore.
The four-decade-old, Pune-based Sushrut Surgicals is a leader in the orthopaedic trauma products for the India market.
With this acquisition London-listed Smith & Nephew get an entry into India's $50 billion healthcare industry, clocking a CAGR of 15% to 20%, and is expected to double its market size before the end of this decade.
Sushrut's product range includes primarily trauma implants and instrumentation, as well as spine and limb salvage portfolios. Investment bank o3 Capital advised the transaction.
"Through this acquisition we are continuing to deliver on our strategic priorities to build leadership positions in the emerging markets, " said Olivier Bohuon, CEO of Smith & Nephew.
The four-decade-old, Pune-based Sushrut Surgicals is a leader in the orthopaedic trauma products for the India market.
With this acquisition London-listed Smith & Nephew get an entry into India's $50 billion healthcare industry, clocking a CAGR of 15% to 20%, and is expected to double its market size before the end of this decade.
Sushrut's product range includes primarily trauma implants and instrumentation, as well as spine and limb salvage portfolios. Investment bank o3 Capital advised the transaction.
"Through this acquisition we are continuing to deliver on our strategic priorities to build leadership positions in the emerging markets, " said Olivier Bohuon, CEO of Smith & Nephew.
Airtel sells 5% stake to Qatar Foundation for $1.26 billion
New Delhi: Qatar has picked up 5 per cent stake in Bharti Airtel for $1.26 billion (Rs 6,796 crore). The deal has been routed through Qatar Foundation Endowment (QFE), an investment vehicle of the Qatar Foundation controlled by Sheikha Mozah, the second wife of the country’s Emir.
Bharti will issue 19.9 crore new shares to the Foundation at Rs 340/share. The company’s shares were trading at Rs 317.7, up 0.30 per cent, at close on Friday on the Bombay Stock Exchange.
The deal indicates that foreign investors still see the Indian telecom sector as an attractive destination despite the regulatory uncertainties. “This strategic partnership with QFE demonstrates the confidence they have in the company and our strategy for growth,” said Sunil Bharti Mittal, Chairman, Bharti.
Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said this was a long-term investment. Bharti plans to use the proceeds to repay debt. Post the deal, the promoter group’s stake will fall from 68.55 per cent to 65.12 per cent. “Our calculations suggest that the share issue will be largely neutral on EPS (earnings per share) estimates. The transaction will aid in strengthening the balance-sheet of Bharti Airtel with net debt to reduce from Rs 63,800 crore to Rs 57,000 crore.” Shobhit Khare VP-Research, Motilal Oswal Securities Ltd, said.
Bharti had recently raised $1.5 billion via overseas bonds. It is also looking to sell up to 25 per cent stake in its DTH business.
Bharti will issue 19.9 crore new shares to the Foundation at Rs 340/share. The company’s shares were trading at Rs 317.7, up 0.30 per cent, at close on Friday on the Bombay Stock Exchange.
The deal indicates that foreign investors still see the Indian telecom sector as an attractive destination despite the regulatory uncertainties. “This strategic partnership with QFE demonstrates the confidence they have in the company and our strategy for growth,” said Sunil Bharti Mittal, Chairman, Bharti.
Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said this was a long-term investment. Bharti plans to use the proceeds to repay debt. Post the deal, the promoter group’s stake will fall from 68.55 per cent to 65.12 per cent. “Our calculations suggest that the share issue will be largely neutral on EPS (earnings per share) estimates. The transaction will aid in strengthening the balance-sheet of Bharti Airtel with net debt to reduce from Rs 63,800 crore to Rs 57,000 crore.” Shobhit Khare VP-Research, Motilal Oswal Securities Ltd, said.
Bharti had recently raised $1.5 billion via overseas bonds. It is also looking to sell up to 25 per cent stake in its DTH business.
Government envisages investment of US$ 12.1 billion in the airport sector
New Delhi: Civil Aviation Minister, Shri Ajit Singh, while launching the “India Aviation – 2014” today in New Delhi, said that rapidly expanding air transport network and opening up of the infrastructure to private sector participation have fuelled the growth of air traffic in India. He further said that the Government has envisaged an investment of US $ 12.1 billion in the airport sector during the 12th Plan period. The text of his address is as follows:
“Civil Aviation is a key infrastructure sector that facilitates the growth of business, seamless flow of investment, trade and tourism, with significant multiplier effects across the economy. The aviation sector is one of the prime movers for economic growth and a strategic element of employment generation, besides providing air transport for passengers and goods. Over a third of world trade by value is delivered by air and about half of international tourism is facilitated by air links. Aviation has created a global community based on the connectivity it provides. In a world of decreasing barriers to trade, the civil aviation industry remains a unique engine for innovation and technological progress, one that provides infrastructure that keeps the nation competitive.
“Rapidly expanding air transport network and opening up of the airport infrastructure to private sector participation have fuelled the growth of the air traffic in India. The Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, making India the third largest aviation market.
“In order to stimulate air connectivity, airlines are expected to add around 370 aircrafts, worth US$ 27.5 billion, to their fleet by the year 2017. Moreover, it is estimated that commercial fleet size is expected to reach 1000 from 400 today by 2020, and one thousand General aviation aircrafts by 2020 including fleet renewal. Estimated investment requirement for the General aviation aircrafts alone is of the order of US$ 4 Billion.
“Indian government has envisaged investment of US $12.1 billion in the airports sector during the 12th Plan period, of which US $ 9.3 billion is expected to come from the private sector for construction of new airports, expansion, modernization of existing airports and development of low cost airports to keep the tariff at its minimal at smaller airports, improvement in connecting infrastructure, development of world class Air Navigation Services infrastructure. At the same time, in order to develop world class ground handling, cargo, logistic facilities including high-output distribution centers at major airports, huge investment is also anticipated.
“Indian Government is committed for the development of the sector and has introduced several policies and regulatory reforms to encourage private participation and investments in the sector. There have also been several initiatives in the regulatory framework for propelling the aviation sector to new heights despite the challenges faced due to rising fuel costs, fierce competition and infrastructure bottlenecks. Recently, we have allowed 49% FDI by the foreign carriers in domestic airlines which are going to provide much-needed relief to the domestic aviation industry, reeling under the pressure of mounting losses and rising debt burden. Some carriers like Tata – Air Asia and Jet Airways – Etihad have already announced their collaboration which is expected to boost civil aviation both domestically and internationally. Further, Indian carriers have been allowed to import ATF directly.
“Recently, the Aircraft Acquisition Committee has been abolished to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use, which will give impetus to the growth and expansion of airlines in India. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. This decision will minimize delays in seeking approvals and avoid the cumbersome procedures which airlines were supposed to follow before acquiring an aircraft. The decision will help airlines to plan better for future induction of aircraft and also maintain timeliness of acquisition.
“The Government has also allowed Flexi Use of Airspace by civil and military users, which permits them to efficiently and effectively utilize the available airspace on sharing basis. It would result in optimum usage of airspace, enhancement of airspace capacity, minimizing delays, conservation of fuel, reduction in emissions and ultimate benefits to travelling public. It is expected that there will be a reduction of carbon emissions by about 7 million kg per annum by direct routing between 7 major city pairs only because of flexible usage of airspace.
“In an endeavor to make the growth of the sector equitable and inclusive, Government has taken significant measures for providing affordable air connectivity to remote and interior areas of the country - the North Eastern Region and Tier-II & III cities of India. Government is in the process of formulation of a policy for the promotion of regional connectivity, incentivizing Indian airlines to operate on these routes, by code-sharing and seat-credit mechanism. The bigger airlines will be able to use such credits to meet their requirement of having to connect such remote areas without having to lose money on such operations. This is expected to generate greater financial viability for regional operators. An Essential Air Services Fund is also being proposed by the Government for providing subsidy for development of low-cost airports throughout the country. This is to encourage domestic airlines to fly on remote interior routes with tourism potential.
“To facilitate the growth of MRO Business and to make it competitive, the Government has announced several concessions in the Union Budget for 2013-14 including extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircrafts also and inclusion of foreign airlines for the purpose of duty-free imports of parts, etc as applicable for scheduled air transport services. These concessions have been widely welcomed by the industry.
“To spur the growth of international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. The new traffic rights have increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights.
“Another important move that has accelerated the modernization and development process is the privatization of five major airports under PPP mode and the policy of development of Greenfield airports which envisages synergy between the public and private sector.
“Moreover, to develop civil aviation in India and further facilitate the functioning of the sector, series of policy reform decisions are under consideration. These include getting ATF declared as notified product & bringing transparency in its pricing; rationalisation of bilateral air service agreements with different countries, traffic entitlements on international routes to Indian carriers, creation of a separate Air Navigation Services Corporation from AAI to make it more effective, efficient & professional body, creation of a Civil Aviation Authority in place of DGCA and creation of a separate Civil Aviation Security Force which is professionally trained for the work of civil aviation.
“Considering the growth prospects of air traffic, potential for large scale acquisition of aircrafts by the carriers, and substantial investment projections, Indian aerospace market offers tremendous long term opportunities for providing maintenance repair & overhaul services, ground handling services, manpower training, building an efficient airspace & air traffic management system, air cargo services, establishing aircraft designing & manufacturing centres, etc. Furthermore, currently, the air travel penetration in India is 0.04 air trips per capita per annum which is far behind developed countries like US & Australia (more than 2 air trips per capita per annum), and China & Brazil (0.3 air trips per capita per annum). The gap between potential and current air travel penetration highlights the huge potential for the air traffic growth in India, considering a relatively higher trajectory of economic growth coupled with necessary Government support.
“Let me conclude by saying that our aviation scenario is fast changing and poised for breaking boundaries and scaling new heights. With ever-increasing scope for participation by private sector, we expect significant developments in the years ahead. I invite you all to participate in India Aviation 2014 at Hyderabad and contribute in the enhancement of air connectivity in the region.”
“Civil Aviation is a key infrastructure sector that facilitates the growth of business, seamless flow of investment, trade and tourism, with significant multiplier effects across the economy. The aviation sector is one of the prime movers for economic growth and a strategic element of employment generation, besides providing air transport for passengers and goods. Over a third of world trade by value is delivered by air and about half of international tourism is facilitated by air links. Aviation has created a global community based on the connectivity it provides. In a world of decreasing barriers to trade, the civil aviation industry remains a unique engine for innovation and technological progress, one that provides infrastructure that keeps the nation competitive.
“Rapidly expanding air transport network and opening up of the airport infrastructure to private sector participation have fuelled the growth of the air traffic in India. The Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, making India the third largest aviation market.
“In order to stimulate air connectivity, airlines are expected to add around 370 aircrafts, worth US$ 27.5 billion, to their fleet by the year 2017. Moreover, it is estimated that commercial fleet size is expected to reach 1000 from 400 today by 2020, and one thousand General aviation aircrafts by 2020 including fleet renewal. Estimated investment requirement for the General aviation aircrafts alone is of the order of US$ 4 Billion.
“Indian government has envisaged investment of US $12.1 billion in the airports sector during the 12th Plan period, of which US $ 9.3 billion is expected to come from the private sector for construction of new airports, expansion, modernization of existing airports and development of low cost airports to keep the tariff at its minimal at smaller airports, improvement in connecting infrastructure, development of world class Air Navigation Services infrastructure. At the same time, in order to develop world class ground handling, cargo, logistic facilities including high-output distribution centers at major airports, huge investment is also anticipated.
“Indian Government is committed for the development of the sector and has introduced several policies and regulatory reforms to encourage private participation and investments in the sector. There have also been several initiatives in the regulatory framework for propelling the aviation sector to new heights despite the challenges faced due to rising fuel costs, fierce competition and infrastructure bottlenecks. Recently, we have allowed 49% FDI by the foreign carriers in domestic airlines which are going to provide much-needed relief to the domestic aviation industry, reeling under the pressure of mounting losses and rising debt burden. Some carriers like Tata – Air Asia and Jet Airways – Etihad have already announced their collaboration which is expected to boost civil aviation both domestically and internationally. Further, Indian carriers have been allowed to import ATF directly.
“Recently, the Aircraft Acquisition Committee has been abolished to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use, which will give impetus to the growth and expansion of airlines in India. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. This decision will minimize delays in seeking approvals and avoid the cumbersome procedures which airlines were supposed to follow before acquiring an aircraft. The decision will help airlines to plan better for future induction of aircraft and also maintain timeliness of acquisition.
“The Government has also allowed Flexi Use of Airspace by civil and military users, which permits them to efficiently and effectively utilize the available airspace on sharing basis. It would result in optimum usage of airspace, enhancement of airspace capacity, minimizing delays, conservation of fuel, reduction in emissions and ultimate benefits to travelling public. It is expected that there will be a reduction of carbon emissions by about 7 million kg per annum by direct routing between 7 major city pairs only because of flexible usage of airspace.
“In an endeavor to make the growth of the sector equitable and inclusive, Government has taken significant measures for providing affordable air connectivity to remote and interior areas of the country - the North Eastern Region and Tier-II & III cities of India. Government is in the process of formulation of a policy for the promotion of regional connectivity, incentivizing Indian airlines to operate on these routes, by code-sharing and seat-credit mechanism. The bigger airlines will be able to use such credits to meet their requirement of having to connect such remote areas without having to lose money on such operations. This is expected to generate greater financial viability for regional operators. An Essential Air Services Fund is also being proposed by the Government for providing subsidy for development of low-cost airports throughout the country. This is to encourage domestic airlines to fly on remote interior routes with tourism potential.
“To facilitate the growth of MRO Business and to make it competitive, the Government has announced several concessions in the Union Budget for 2013-14 including extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircrafts also and inclusion of foreign airlines for the purpose of duty-free imports of parts, etc as applicable for scheduled air transport services. These concessions have been widely welcomed by the industry.
“To spur the growth of international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. The new traffic rights have increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights.
“Another important move that has accelerated the modernization and development process is the privatization of five major airports under PPP mode and the policy of development of Greenfield airports which envisages synergy between the public and private sector.
“Moreover, to develop civil aviation in India and further facilitate the functioning of the sector, series of policy reform decisions are under consideration. These include getting ATF declared as notified product & bringing transparency in its pricing; rationalisation of bilateral air service agreements with different countries, traffic entitlements on international routes to Indian carriers, creation of a separate Air Navigation Services Corporation from AAI to make it more effective, efficient & professional body, creation of a Civil Aviation Authority in place of DGCA and creation of a separate Civil Aviation Security Force which is professionally trained for the work of civil aviation.
“Considering the growth prospects of air traffic, potential for large scale acquisition of aircrafts by the carriers, and substantial investment projections, Indian aerospace market offers tremendous long term opportunities for providing maintenance repair & overhaul services, ground handling services, manpower training, building an efficient airspace & air traffic management system, air cargo services, establishing aircraft designing & manufacturing centres, etc. Furthermore, currently, the air travel penetration in India is 0.04 air trips per capita per annum which is far behind developed countries like US & Australia (more than 2 air trips per capita per annum), and China & Brazil (0.3 air trips per capita per annum). The gap between potential and current air travel penetration highlights the huge potential for the air traffic growth in India, considering a relatively higher trajectory of economic growth coupled with necessary Government support.
“Let me conclude by saying that our aviation scenario is fast changing and poised for breaking boundaries and scaling new heights. With ever-increasing scope for participation by private sector, we expect significant developments in the years ahead. I invite you all to participate in India Aviation 2014 at Hyderabad and contribute in the enhancement of air connectivity in the region.”
Friday, May 3, 2013
Apollo Tyres sets up second export hub in Thailand
New Delhi: Automotive tyre manufacturer Apollo Tyres on Thursday said it had opened a sales office in Bangkok, making it the hub for Association of Southeast Asian Nations (Asean) operations.
Till now, the company used to export tyres to countries in the region.
After Dubai for the West Asia region, this is the second hub outside the company’s operations in India, the company said. Apollo Tyres also has sales offices in the Netherlands and South Africa.
In the last few years, the demand and acceptability of our tyres has increased manifold in the Asean region, said Satish Sharma, Chief (of the region).
He said Apollo was positioned to serve six million units a year in the commercial vehicle replacement tyre market in the region.
Sharma said the Asean region had become one of Apollo’s strongest export markets out of India, accounting for over 40 per cent of its export revenues.
Tyres for this region are produced out of Apollo’s four plants in India, including a modern facility in Chennai.
Till now, the company used to export tyres to countries in the region.
After Dubai for the West Asia region, this is the second hub outside the company’s operations in India, the company said. Apollo Tyres also has sales offices in the Netherlands and South Africa.
In the last few years, the demand and acceptability of our tyres has increased manifold in the Asean region, said Satish Sharma, Chief (of the region).
He said Apollo was positioned to serve six million units a year in the commercial vehicle replacement tyre market in the region.
Sharma said the Asean region had become one of Apollo’s strongest export markets out of India, accounting for over 40 per cent of its export revenues.
Tyres for this region are produced out of Apollo’s four plants in India, including a modern facility in Chennai.
Gati Infra commissions hydel project in Sikkim
Hyderabad: Gati Infrastructure Ltd has commissioned its first 110 MW hydro electric power plant in Sikkim.
According to the company, they have invested about Rs 1,150 crore in the hydel project.
The company is a subsidiary of Amrit Jal Ventures Ltd promoted by Mahendra Agarwal, Founder and Chief Executive Officer of logistics company Gati Ltd.
Gati Infra had entered into an agreement with the Sikkim Government to implement three hydel power projects on build, operate, own and transfer basis.
The first project of 110 MW Chuzachen hydro project on Rangpo and Rongli rivers have been commissioned and have begun to sell power.
This is the first project by an independent power producer in Sikkim and the seven sisters in the North- East, Gati said.
Mahendra Agarwal in a statement said the commissioning of the hydel project is a big milestone in the history of Gati Group. Being a logistics company, the entry into power is an unrelated diversification.
The plant is directly connected to the Central Transmission Utility (national grid) through a 24-km dedicated transmission line and will be able to deliver power across the country.
The express distribution and supply chain company Gati Ltd, TCI Finance Ltd are shareholders of the company Amrit Jal Ventures Ltd, which is implementing two more hydel power projects in Sikkim.
These include a 54-MW Bhasmey hydro electric project and 71 MW Sada Mangdar project.
Gati shares closed the day at Rs 29.40, up 2.62 per cent on the BSE.
According to the company, they have invested about Rs 1,150 crore in the hydel project.
The company is a subsidiary of Amrit Jal Ventures Ltd promoted by Mahendra Agarwal, Founder and Chief Executive Officer of logistics company Gati Ltd.
Gati Infra had entered into an agreement with the Sikkim Government to implement three hydel power projects on build, operate, own and transfer basis.
The first project of 110 MW Chuzachen hydro project on Rangpo and Rongli rivers have been commissioned and have begun to sell power.
This is the first project by an independent power producer in Sikkim and the seven sisters in the North- East, Gati said.
Mahendra Agarwal in a statement said the commissioning of the hydel project is a big milestone in the history of Gati Group. Being a logistics company, the entry into power is an unrelated diversification.
The plant is directly connected to the Central Transmission Utility (national grid) through a 24-km dedicated transmission line and will be able to deliver power across the country.
The express distribution and supply chain company Gati Ltd, TCI Finance Ltd are shareholders of the company Amrit Jal Ventures Ltd, which is implementing two more hydel power projects in Sikkim.
These include a 54-MW Bhasmey hydro electric project and 71 MW Sada Mangdar project.
Gati shares closed the day at Rs 29.40, up 2.62 per cent on the BSE.
Cabinet Committee on Economic Affairs okays Rs 10.5k cr IKEA plan
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved Swedish furniture retailer IKEA's plan to invest Rs 10,500 crore for a single brand retail venture in India, making it the largest investment to be made by a foreign brand in the Indian retail sector.
The approval comes as the final go-ahead for the retail giant to set up shop in the country after it had submitted its application for an India entry early last year. The 25 billion euro company had received the Foreign Investment Proposal Board's (FIPB) nod in February this year.
"This is a very positive development...India is an important market for the IKEA Group from a sourcing perspective. We have been active in the country for more than 25 years and will continue to increase our sourcing in India from both existing and new suppliers building on long term relations and shared values," said Mikael Ohlsson, president and CEO, IKEA Group.
The company, which has been sourcing products approximately worth $450 million from India as of 2011, said it has growth plans to exceed $1 billion over the next few years with a target of setting up 10 stores over 10 years and around 25 stores over a longer time period.
While the government has allowed the furniture chain to run cafes and restaurants within its single brand stores, the brand will not be permitted to sell food items inside the stores, commerce minister Anand Sharma had said last month.
"Today's decision of CCEA to allow foreign investment proposal of IKEA is indeed a historic one. This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain," Sharma said.
ETF for PSU stocks gets approval
MUMBAI/NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared the government proposal to set up an exchange traded fund backed by a basket of PSU stocks, commonly referred as CPSEETF. The government plans to float such a fund so that, among other benefits, PSU divestments could be carried out in a much less disruptive manner for the market and can also incentivize retail investors. An empowered group of ministers would take this forward, the government said in a release. The CPSEETF will constitute a basket of shares of different PSUs which would track an index, but will trade like a stock on the exchange. ICICI Securities is the adviser to the ETF and Goldman Sachs is learnt to be the fund manager. The release on CPSEETF noted that each stock would have a fixed weightage in the basket and the ETF will give discount to investors. Selling a mutual fund at a discount to its NAV is a new concept in the Indian market, and would require some rule change by the market regulator Sebi, mutual fund industry veterans pointed out.
The approval comes as the final go-ahead for the retail giant to set up shop in the country after it had submitted its application for an India entry early last year. The 25 billion euro company had received the Foreign Investment Proposal Board's (FIPB) nod in February this year.
"This is a very positive development...India is an important market for the IKEA Group from a sourcing perspective. We have been active in the country for more than 25 years and will continue to increase our sourcing in India from both existing and new suppliers building on long term relations and shared values," said Mikael Ohlsson, president and CEO, IKEA Group.
The company, which has been sourcing products approximately worth $450 million from India as of 2011, said it has growth plans to exceed $1 billion over the next few years with a target of setting up 10 stores over 10 years and around 25 stores over a longer time period.
While the government has allowed the furniture chain to run cafes and restaurants within its single brand stores, the brand will not be permitted to sell food items inside the stores, commerce minister Anand Sharma had said last month.
"Today's decision of CCEA to allow foreign investment proposal of IKEA is indeed a historic one. This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain," Sharma said.
ETF for PSU stocks gets approval
MUMBAI/NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared the government proposal to set up an exchange traded fund backed by a basket of PSU stocks, commonly referred as CPSEETF. The government plans to float such a fund so that, among other benefits, PSU divestments could be carried out in a much less disruptive manner for the market and can also incentivize retail investors. An empowered group of ministers would take this forward, the government said in a release. The CPSEETF will constitute a basket of shares of different PSUs which would track an index, but will trade like a stock on the exchange. ICICI Securities is the adviser to the ETF and Goldman Sachs is learnt to be the fund manager. The release on CPSEETF noted that each stock would have a fixed weightage in the basket and the ETF will give discount to investors. Selling a mutual fund at a discount to its NAV is a new concept in the Indian market, and would require some rule change by the market regulator Sebi, mutual fund industry veterans pointed out.
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