Hyderabad: Aurobindo Pharma Ltd has lined up about 20 product launches in the US market in the current financial year which may improve its margins.
This was disclosed by Robert Cunard, Chief Executive Officer, Aurobindo Pharma, US, in the recent earnings call.
“A big question is what the Food and Drug Administration (FDA) does as far as the review time is concerned. But for FY 14, we expect 16 to 20 oral solid launches in the US market,” he said.
Of these, three products were expected from the Hyderabad-based company’s Aurolife facilities in the controlled substance area and one in the over the counter segment, he added.
“We do expect that some the molecules/key launches will be of little higher margins and continue to drive our growth,” he said.
The revenue to be generated on the new product side should be similar to what was witnessed last year which was about 14 per cent of the company’s total revenue in the US.
LOSSES IN EUROPE
On the improvement in the performance of European subsidiaries which were incurring losses in the last two years, N. Govindarajan, Managing Director, said there could be some improvement.
The subsidiaries in the UK and the Netherlands became profitable last year and Spain and Germany would become positive during the current financial year.
The performance in Italy and Portugal might take some more time.
“Over all, all European subsidiaries put together, we will be making a profit in the next year,” he said.
Aurobindo Pharma posted consolidated net profit of Rs 108.6 crore for the fourth quarter ended March 31, 2013, almost same as in the year-ago period.
Its scrip dropped 0.83 per cent on the BSE on Friday to close at Rs 184.15.
Success in my Habit
Tuesday, June 11, 2013
RCom to lease out telecom towers to Reliance Jio in Rs 12,000-cr pact
Mumbai: The Ambani brothers are getting closer, firming up on Friday a Rs 12,000-crore telecom tower deal. Anil Ambani promoted Reliance Communications will lease some 45,000 mobile masts to Reliance Jio Infocomm, run by his once estranged brother Mukesh.
Prelude to 4G
The latest deal with RCom is one of the several arrangements being put in place by Mukesh Ambani’s Reliance Industries to launch fourth generation, or 4G, telecom services next year
via Reliance Jio Infocomm.
Reliance Jio has pan-India licences to launch 4G services which, once deployed, will enable users to download a 10-megabyte piece of software in two seconds, and a two-gigabyte HD movie in minutes.
Reliance Jio will use 45,000 of RCom’s 50,000 ground and rooftop-based towers so that the rollout of 4G services can be accelerated, the two companies said in a press statement.
The deal will increase RCom’s average tenancy ratio, or tenants per tower to 2.7 per cent from 1.7 per cent, market sources said. The deal is said to be part of an ongoing ‘comprehensive framework of business co-operation’ between Reliance Industries and RCom.
The first commercial accord between the two firms was signed in April when RIL agreed to use RCom’s fibre optic network for a one-time payment of Rs 1,200 crore.
Interestingly, this time around, the companies have chosen not to disclose the tenure of the engagement. All they have said is that the deal is valid ‘for the lifetime of the agreement’. Company executives, who declined to be identified, say the two companies have contracted for 15 years.
Validity
Reliance Industries will pay an average of Rs 800 crore a year, but the payout in the first few years will be around Rs 200 crore, they said.
The broadband wireless access licence won by Infotel Broadband, and later acquired by RIL, is valid for 20 years starting 2010.
“RIL is known to be a tough negotiator. Since the company had not disclosed the tenure of the engagement, in all probability RIL would have got a good deal on the valuation side. However, the deal is good news for RCom as it will help it reduce debt and stabilise cash-flows,” said Alok Shende, Principal Analyst, Ascentius Consulting.
As on March 31, 2013, RCom had a net debt of Rs 38,864 crore. A deal with Reliance Jio, which means assured business, increases the chances of RCom finding a strategic investor.
Brokerages too are taking a cautious view on the RIL and RCom stocks as no details are available on the deal. “We continue to remain neutral on the stock as of now and wait for clarity on the nature of payments, rentals, etc,” Angel Broking’s Telecom Analyst Ankita Somani said in a research note.
The Reliance Industries scrip closed down 0.97 per cent at Rs 784.6 on the BSE, while the RCom ended at Rs 116.1, 1.1 per cent lower than Thursday’s closing price.
Prelude to 4G
The latest deal with RCom is one of the several arrangements being put in place by Mukesh Ambani’s Reliance Industries to launch fourth generation, or 4G, telecom services next year
via Reliance Jio Infocomm.
Reliance Jio has pan-India licences to launch 4G services which, once deployed, will enable users to download a 10-megabyte piece of software in two seconds, and a two-gigabyte HD movie in minutes.
Reliance Jio will use 45,000 of RCom’s 50,000 ground and rooftop-based towers so that the rollout of 4G services can be accelerated, the two companies said in a press statement.
The deal will increase RCom’s average tenancy ratio, or tenants per tower to 2.7 per cent from 1.7 per cent, market sources said. The deal is said to be part of an ongoing ‘comprehensive framework of business co-operation’ between Reliance Industries and RCom.
The first commercial accord between the two firms was signed in April when RIL agreed to use RCom’s fibre optic network for a one-time payment of Rs 1,200 crore.
Interestingly, this time around, the companies have chosen not to disclose the tenure of the engagement. All they have said is that the deal is valid ‘for the lifetime of the agreement’. Company executives, who declined to be identified, say the two companies have contracted for 15 years.
Validity
Reliance Industries will pay an average of Rs 800 crore a year, but the payout in the first few years will be around Rs 200 crore, they said.
The broadband wireless access licence won by Infotel Broadband, and later acquired by RIL, is valid for 20 years starting 2010.
“RIL is known to be a tough negotiator. Since the company had not disclosed the tenure of the engagement, in all probability RIL would have got a good deal on the valuation side. However, the deal is good news for RCom as it will help it reduce debt and stabilise cash-flows,” said Alok Shende, Principal Analyst, Ascentius Consulting.
As on March 31, 2013, RCom had a net debt of Rs 38,864 crore. A deal with Reliance Jio, which means assured business, increases the chances of RCom finding a strategic investor.
Brokerages too are taking a cautious view on the RIL and RCom stocks as no details are available on the deal. “We continue to remain neutral on the stock as of now and wait for clarity on the nature of payments, rentals, etc,” Angel Broking’s Telecom Analyst Ankita Somani said in a research note.
The Reliance Industries scrip closed down 0.97 per cent at Rs 784.6 on the BSE, while the RCom ended at Rs 116.1, 1.1 per cent lower than Thursday’s closing price.
Govt appoints council of experts for financial sector
New Delhi: The Finance Ministry has constituted a standing council of experts to assess the international competitiveness of the Indian financial sector.
The council will be headed by the Secretary, Department of Economic Affairs.
The Council will examine various monetary and non-monetary transaction costs or burden of doing business in the Indian market, and make recommendations for enhancing its competitiveness.
It will have Chief Economic Adviser as alternate chairman and member. The council will also have Prithvi Haldea (Chairman, Prime Database), Madhav Dhar (Board Member, GTI Group), Nachiket Mor (Chairman, CARE India), Shumeet Banerji (ex-CEO, Booz and Company), Jahangir Aziz (JP Morgan), Ravi Narain (former MD & present Vice-Chairman, NSE), Vikram Gandhi (CEO, VSG Capital Advisors), Susan Thomas (Assistant Professor, IGIDR), Shubhashis Gangopadhyay (Director, India Development Foundation) and V. Ravi Anshuman (IIM, Bangalore) as the members. According to the terms of reference of the Council, it will look at issues relating to transacting business through Indian capital markets, including brokerage fee, applicable tax rates, documentation requirements etc, vis-à-vis other competing destinations, and make recommendations aimed at achieving competitiveness.
The council has been asked to examine related policy or operating frameworks and the performance of various segments of the Indian capital market. It will make recommendations aimed at improving their competitiveness and efficiency, as also the completeness of these markets in terms of fully meeting client needs according to global standards through provision of requisite services and financial instruments.
Reform measures
The council will also examine possibilities for and suggest reform measures aimed at enhancing transparency, promoting development and strengthening of governance in the Indian capital markets, while ensuring that risks are contained and investor interests are protected.
The council has been constituted after an announcement was made in the Budget. In his budget speech, the Finance Minister P. Chidambaram had said, "I propose to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector, periodically examine the transaction costs of doing business in the Indian market, and provide inputs to Government for necessary action."
The council will be headed by the Secretary, Department of Economic Affairs.
The Council will examine various monetary and non-monetary transaction costs or burden of doing business in the Indian market, and make recommendations for enhancing its competitiveness.
It will have Chief Economic Adviser as alternate chairman and member. The council will also have Prithvi Haldea (Chairman, Prime Database), Madhav Dhar (Board Member, GTI Group), Nachiket Mor (Chairman, CARE India), Shumeet Banerji (ex-CEO, Booz and Company), Jahangir Aziz (JP Morgan), Ravi Narain (former MD & present Vice-Chairman, NSE), Vikram Gandhi (CEO, VSG Capital Advisors), Susan Thomas (Assistant Professor, IGIDR), Shubhashis Gangopadhyay (Director, India Development Foundation) and V. Ravi Anshuman (IIM, Bangalore) as the members. According to the terms of reference of the Council, it will look at issues relating to transacting business through Indian capital markets, including brokerage fee, applicable tax rates, documentation requirements etc, vis-à-vis other competing destinations, and make recommendations aimed at achieving competitiveness.
The council has been asked to examine related policy or operating frameworks and the performance of various segments of the Indian capital market. It will make recommendations aimed at improving their competitiveness and efficiency, as also the completeness of these markets in terms of fully meeting client needs according to global standards through provision of requisite services and financial instruments.
Reform measures
The council will also examine possibilities for and suggest reform measures aimed at enhancing transparency, promoting development and strengthening of governance in the Indian capital markets, while ensuring that risks are contained and investor interests are protected.
The council has been constituted after an announcement was made in the Budget. In his budget speech, the Finance Minister P. Chidambaram had said, "I propose to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector, periodically examine the transaction costs of doing business in the Indian market, and provide inputs to Government for necessary action."
Enterprise software market to reach $ 3.92 bn in 2013: Gartner
New Delhi: Despite challenging economic conditions, the enterprise software market in India is projected to reach $3.92 billion in 2013, a 13.9% growth over 2012 revenue of $3.45 billion, according to analyst firm Gartner. In 2013, India will be the fourth largest enterprise software market in Asia-Pacific region.
"Growing maturity of Indian users is an important driver for overall growth. Compounding the demand is the ongoing tendency for greater customer services, drive for IT cost savings, as well as the incorporation of emerging technologies such as mobility, social, cloud and business process management," said Asheesh Raina, principal research analyst at Gartner, in a release.
India also enjoys a rich presence of international software and hardware vendors, including HP, dell, Microsoft, IBM backed by an ecosystem of system integrators, service providers and business partners. The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (Gartner defines it as the convergence of new mobile, social, cloud and information computing environments) are the key drivers for high sustainable growth for India.
India is forecast to account for 11.6% of the region's total revenue of $33.73 billion in 2013, the equivalent to 1.32% of the total worldwide software market of $296 billion. By 2017, India's share of the software market in Asia-Pacific is expected to reach 13.11%, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion.
"End users in Asia-Pacific are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore," said Mr. Raina. "Increased budgets in India are expected because of the growing economy, increased globalization, foreign direct investment ( FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination."
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
"Growing maturity of Indian users is an important driver for overall growth. Compounding the demand is the ongoing tendency for greater customer services, drive for IT cost savings, as well as the incorporation of emerging technologies such as mobility, social, cloud and business process management," said Asheesh Raina, principal research analyst at Gartner, in a release.
India also enjoys a rich presence of international software and hardware vendors, including HP, dell, Microsoft, IBM backed by an ecosystem of system integrators, service providers and business partners. The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (Gartner defines it as the convergence of new mobile, social, cloud and information computing environments) are the key drivers for high sustainable growth for India.
India is forecast to account for 11.6% of the region's total revenue of $33.73 billion in 2013, the equivalent to 1.32% of the total worldwide software market of $296 billion. By 2017, India's share of the software market in Asia-Pacific is expected to reach 13.11%, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion.
"End users in Asia-Pacific are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore," said Mr. Raina. "Increased budgets in India are expected because of the growing economy, increased globalization, foreign direct investment ( FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination."
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
India offers US$ 150 million for SEZ in Sittwe
Indian Banks Make Inroads in Myanmar
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
Saturday, June 8, 2013
GAIL, SCI sign MoU for LNG transportation
New Delhi: Gail India and the Shipping of Corporation India (SCI) today signed a memorandum of understanding (MOU) to cooperate for transportation of LNG sourced by Gail from the United States.
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
RIL will invest Rs1.5 lakh crore in next 3 years
Mumbai: Reliance Industries (RIL) has lined up an investment of Rs 1.5 lakh crore over the next three years across its business from oil and gas to petrochemicals and from retail to telecommunications, making it the largest capital investment in India by any enterprise.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
India leads among BRIC nations: HSBC survey
New Delhi: India expanded at a better rate than the three BRIC peers China, Russia and Brazil in May 2013, according to a survey by HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
India, S. Africa may sign preferential trade pact this year
Hyderabad:India and South Africa may conclude a Preferential Trade Agreement by the end of this year, which would significantly boost bi-lateral trade, according to Moketsa Ramasodi, Chief Director, Department of Agriculture, Republic of South Africa.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
India committed to be a steadfast partner of Myanmar: Anand Sharma
New Delhi:The Union Minister of Commerce, Industry & Textiles Shri Anand Sharma today asserted that with democracy tightening its grip in Myanmar, which has provided a right enabling environment to inspire investors’ confidence, India remains committed "to be a steadfast partner of Myanmar as it charters its path to growth and progress." Speaking during a session entitled "The Long-Term View" at the World Economic Forum on East Asia 2013 in Nay Pyi Taw, Myanmar today, Shri Sharma highlighted that India’s engagement with Myanmar is premised on a strong development partnership and that India would like to align its cooperation with the economic priorities of Myanmar.
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
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