Agartala: When Prime Minister Manmohan Singh laid the foundation stone for the 726.6-MW gas-based ONGC Tripura Power Company at Palatana in Tripura in 2005 – barely kilometres away from the Bangladesh border – not many, even in ONGC boardroom, were convinced if the project would take off.
Never before had power equipment weighing up to 280 tonne been brought to this land-locked State, which suffers from poor connectivity. All the power projects commissioned here so far were only of 10-30 MW capacity each.
About eight years later, President Pranab Mukherjee dedicated to the nation the first 363.3 MW unit on Friday. He was all praise for the role of Bangladesh in making this happen.
“India has many power generation utilities. Many more are coming up. But this one is special. Because if Bangladesh had not extended exemplary co-operation in allowing transit of the heavy equipment through their territories, OTPC would have never been a reality,” Mukherjee said in the presence of Bangladeshi diplomats in India.
He stressed on extending the scope of such initiatives for mutual benefit.
“We are trying to set up a common grid (through West Bengal border) to supply power (to Dhaka). NTPC is also setting up a thermal power station in Bangladesh,” the President said.
Fillip to North-East
Gas was discovered in Tripura as early as in 1974. The state-owned ONGC had established production potential to the tune of 5 million standard cubic metres or more.
According to the State Chief Minister, Manik Sarkar, two more E&P companies, engaged in exploration in Tripura, recently reported encouraging results. But in the absence of consumption base, exploration and production activities never gained pace in the State until the late Subir Raha, then ONGC chairman, responded positively to a proposal from the State Government to set up a power generation utility.
For ONGC, this opened the prospect to monetise the gas and step up exploration in the State.
For Tripura and the entire North Eastern region, this was the single largest investment. “From power-starved we are now power surplus. The changed status evinced interest among business,” said Manik Sarkar.
The ONGC company recently agreed to set up a 1.3 million tonne a year fertiliser plant jointly with Chambal Fertiliser and the Tripura Government to monetise its fresh gas discovery at Khubal.
This means that Tripura will witness Rs 5,000 crore of investment in the next three years. This is over and above an approximately Rs 10,000 crore investment in the last couple of years involving the power project.
Success in my Habit
Monday, June 24, 2013
Tuesday, June 11, 2013
Oaktree Capital acquires majority stake in Cogent Glass
Hyderabad: Oaktree Capital Management, a Los Angeles-based investment firm, has acquired majority shares of Cogent Glass Ltd, a packaging company based in Hyderabad.
The US firm has acquired approximately 60 per cent stake of Cogent at an estimated enterprise value of Rs 200 crore.
Cogent, founded by a group of Indian promoters in 2010, commissioned the plant in February. The plant located in Addakal near Hyderabad produces moulded glass and tubular vials and ampoules for the pharmaceutical industry.
The plant is integrated with the automated converting equipment to convert the tube into vials and ampoules.
Oaktree Capital Management is a leading investment firm managing over $80 billion in assets, with a global portfolio of companies with several investments in the packaging sector.
Jean Rollier of Oaktree, who has been appointed non-executive chairman of the board of Cogent Glass, in a statement said: “We are pleased to invest in Cogent, because it provides us an entry into the fast-growing Indian market for pharmaceutical packaging.”
“The investment in Cogent together with our previous investment in SGD, a manufacturer of glass for the pharmaceutical and cosmetics industries, reaffirms our belief that this sector will provide opportunities for growth, globally,” he further said. SGD, a France-based manufacturer of glass packaging with operations in Europe, North and South America and China has simultaneously signed a cooperation agreement with Cogent that provides for technology sharing as well as marketing and management support.
Ashok Sudan, CEO of SDG, and board member of Cogent, based in Paris, told Business Line over phone that both the companies, SDG and Cogent, are now part of the same principal. Cogent will continue to support local companies with its products and explore opportunities to export.
The US firm has acquired approximately 60 per cent stake of Cogent at an estimated enterprise value of Rs 200 crore.
Cogent, founded by a group of Indian promoters in 2010, commissioned the plant in February. The plant located in Addakal near Hyderabad produces moulded glass and tubular vials and ampoules for the pharmaceutical industry.
The plant is integrated with the automated converting equipment to convert the tube into vials and ampoules.
Oaktree Capital Management is a leading investment firm managing over $80 billion in assets, with a global portfolio of companies with several investments in the packaging sector.
Jean Rollier of Oaktree, who has been appointed non-executive chairman of the board of Cogent Glass, in a statement said: “We are pleased to invest in Cogent, because it provides us an entry into the fast-growing Indian market for pharmaceutical packaging.”
“The investment in Cogent together with our previous investment in SGD, a manufacturer of glass for the pharmaceutical and cosmetics industries, reaffirms our belief that this sector will provide opportunities for growth, globally,” he further said. SGD, a France-based manufacturer of glass packaging with operations in Europe, North and South America and China has simultaneously signed a cooperation agreement with Cogent that provides for technology sharing as well as marketing and management support.
Ashok Sudan, CEO of SDG, and board member of Cogent, based in Paris, told Business Line over phone that both the companies, SDG and Cogent, are now part of the same principal. Cogent will continue to support local companies with its products and explore opportunities to export.
Godrej Interio targets Rs 5,000 crore revenue; to invest more than Rs 300 crore
Kolkata: Godrej Interio, the furniture retailing arm of Godrej Group, is eyeing Rs 5,000 crore turnover by 2016-17, with plans to invest more than Rs 300 crore to expand manufacturing capacity and retail stores.
Addressing a press conference here on Monday, Godrej Interio chief operating officer Anil S. Mathur said the company plans to set up more than 75 stores this year itself with focus on tier II and III cities. Godrej Interio in 2012-13 clocked Rs 1,500 crore revenue.
"We are aiming to become a solution provider rather than a product provider," said Mathur. Godrej Interio at present has 49 exclusive stores and also operates through 800 dealers.
The size of the branded furniture market in India is about Rs 10,000 crore out of which Godrej Interio has around 15% share. Mathur said the company also plans to set up 200 speciality stores which will design and built products as per the consumer's convenience.
"We would also partner with global brands to bring them to India. This could also involve local manufacturing, exports and co-branding of the products. We are in talks with Italian firms apart from our existing partnership with an US and Japanese brand," said Mr Mathur.
Addressing a press conference here on Monday, Godrej Interio chief operating officer Anil S. Mathur said the company plans to set up more than 75 stores this year itself with focus on tier II and III cities. Godrej Interio in 2012-13 clocked Rs 1,500 crore revenue.
"We are aiming to become a solution provider rather than a product provider," said Mathur. Godrej Interio at present has 49 exclusive stores and also operates through 800 dealers.
The size of the branded furniture market in India is about Rs 10,000 crore out of which Godrej Interio has around 15% share. Mathur said the company also plans to set up 200 speciality stores which will design and built products as per the consumer's convenience.
"We would also partner with global brands to bring them to India. This could also involve local manufacturing, exports and co-branding of the products. We are in talks with Italian firms apart from our existing partnership with an US and Japanese brand," said Mr Mathur.
Biz intelligence software revenue to touch $113 m this year
Mumbai: Indian business intelligence (BI) software revenue is forecast to rise 16 per cent to reach $113 million in 2013 from $98.1 million in 2002, according to a study by Gartner.
"Pressures from consumers, environmental policies, government and industry regulations, international standards of quality and internal operational efficiency are forcing enterprises to improve their operations and processes to become both agile and efficient in a volatile marketplace," said Bhavish Sood, research director at Gartner.
“These internal and external pressures are driving increased adoption of analytics solutions across the country,” he added.
The forecast includes revenue for BI platforms, analytic applications and corporate performance management software.
"Pressures from consumers, environmental policies, government and industry regulations, international standards of quality and internal operational efficiency are forcing enterprises to improve their operations and processes to become both agile and efficient in a volatile marketplace," said Bhavish Sood, research director at Gartner.
“These internal and external pressures are driving increased adoption of analytics solutions across the country,” he added.
The forecast includes revenue for BI platforms, analytic applications and corporate performance management software.
Spices exports cross Rs 10,000-cr mark
Kochi: Despite the continuance of global recession and economic slump in the overseas markets, India’s spices exports have crossed the Rs 10,000-crore mark.
A total of 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) has been exported in FY13 against 5,75,270 tonnes valued Rs 97,83.42 crore ($2,037.76 million) in FY12.
It is for the first time that the growth in volume of exports registered an all time high of 22 per cent and 14 per cent in value. The total exports have exceeded the target in terms of both quantity and value.
Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value.
As the exports of cumin, mint and chillies show sharp improvements during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A. Jayathilak, Chairman of Spices Board said.
Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds such as mustard, aniseed, ajwain seed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins, etc are the star performers recording rise in exports both in terms of volume and value.
Traditional spices such as pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year.
The export of seed spices witnessed a phenomenal growth both in terms of quantity and value. A total of 1,86,075 tonnes of seed spices valued at Rs 1,672.99 crore was exported in FY 13.
Break up
In the case of cumin, a total quantity of 79,900 tonnes valued Rs 1,093.17 crore was exported against 45,500 tonnes valued at Rs 644.42 crore.
Fennel showed an increase of 80 per cent in terms of quantity and 58 per cent in terms of value whereas fenugreek marked a rise of 43 per cent in quantity and 49 per cent in value terms. In terms of coriander, 37,100 tonnes valued at Rs 210.77 crore have been exported.
With high demand for its value-added products, mint continued to mark an increase of 49 per cent in value and 35 per cent in volume. A total of 19,980 tonnes of mint products were exported at a value of Rs 3,321.79 crore.
Garlic showed a whopping increase both in terms of quantity and value when 24,000 tonnes (2,200 tonne in FY 12) were exported at a value of Rs 74.49 crore (Rs 14.15 crore).
Chilli continued to remain upbeat when a total quantity of 2,81,000 tonnes of chilli valued at Rs 2,261.44 crore have been exported against 2,41,000 tonnes valued at Rs 2,144.08 crore.
While the export of small cardamom declined both in terms of volume and value, large cardamom showed a rising trend in the export market with an increase of 18 per cent in quantity and 8 per cent in value.
A total of 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) has been exported in FY13 against 5,75,270 tonnes valued Rs 97,83.42 crore ($2,037.76 million) in FY12.
It is for the first time that the growth in volume of exports registered an all time high of 22 per cent and 14 per cent in value. The total exports have exceeded the target in terms of both quantity and value.
Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value.
As the exports of cumin, mint and chillies show sharp improvements during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A. Jayathilak, Chairman of Spices Board said.
Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds such as mustard, aniseed, ajwain seed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins, etc are the star performers recording rise in exports both in terms of volume and value.
Traditional spices such as pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year.
The export of seed spices witnessed a phenomenal growth both in terms of quantity and value. A total of 1,86,075 tonnes of seed spices valued at Rs 1,672.99 crore was exported in FY 13.
Break up
In the case of cumin, a total quantity of 79,900 tonnes valued Rs 1,093.17 crore was exported against 45,500 tonnes valued at Rs 644.42 crore.
Fennel showed an increase of 80 per cent in terms of quantity and 58 per cent in terms of value whereas fenugreek marked a rise of 43 per cent in quantity and 49 per cent in value terms. In terms of coriander, 37,100 tonnes valued at Rs 210.77 crore have been exported.
With high demand for its value-added products, mint continued to mark an increase of 49 per cent in value and 35 per cent in volume. A total of 19,980 tonnes of mint products were exported at a value of Rs 3,321.79 crore.
Garlic showed a whopping increase both in terms of quantity and value when 24,000 tonnes (2,200 tonne in FY 12) were exported at a value of Rs 74.49 crore (Rs 14.15 crore).
Chilli continued to remain upbeat when a total quantity of 2,81,000 tonnes of chilli valued at Rs 2,261.44 crore have been exported against 2,41,000 tonnes valued at Rs 2,144.08 crore.
While the export of small cardamom declined both in terms of volume and value, large cardamom showed a rising trend in the export market with an increase of 18 per cent in quantity and 8 per cent in value.
New US biz centre to boost ties with Indian SMEs
Chandigarh: Some 450 SMEs in Mohali, Punjab, adjoining Chandigarh, are upbeat over the setting up of the American Business Corner (ABC) in the Mohali Industrial Area by the US government's department of commerce. This is northern India's first such facility, and is expected to help create business links between US and Indian SMEs.
ABC's activities will include dissemination of catalogues of US and Indian products to potential buyers, and holding of workshops and seminars on topics ranging from trade and finance to IPR (Intellectual Property Rights). It will also act as a clearing house that will connect the 450 members of the Mohali Industries Association (MIA) with US companies.
Anurag Aggarwal, president of MIA, told Business Standard, "In order to set up ABC, Mohali Industries Association signed a MoU with the US commerce department. This is for the first time that American SMEs are reaching out to Indian SMEs and this can prove to be an historic step towards enhancing trade relations between the two countries."
He added, "ABC is a novel concept as, to date, SMEs of the two countries did not have an opportunity to connect with each other. The setting up of ABC will be beneficial for all members who are looking for an opportunity to do business with the US. It will not only boost Indian exports to the US but will also help Indian SMEs to reach out to the best technology."
Mohali, a planned satellite town of Chandigarh, has a large concentration of SMEs which manufacture a wide range of products including railway components, auto parts, tractor parts, sanitary fittings, furniture, PVC pipes, chemicals, corrugated boxes, rubber and silicon material, precision parts, industrial gases, engineering items and electronic goods. The SMEs also manufacture TV sets, transformers, electronic sockets, mini computers, electronic telecom equipment, dish antennas and computer peripherals.
In a press statement, Nancy J Powell, US Ambassador to India, said the ABC in Mohali will act as a clearing house to connect its 450 member firms with US companies interested in doing business with them. Karan Avtar Singh, Punjab's principal secretary, industries and commerce, assured American and Indian SMEs that the Punjab government would help them to connect, so that trade between the two countries increase
ABC's activities will include dissemination of catalogues of US and Indian products to potential buyers, and holding of workshops and seminars on topics ranging from trade and finance to IPR (Intellectual Property Rights). It will also act as a clearing house that will connect the 450 members of the Mohali Industries Association (MIA) with US companies.
Anurag Aggarwal, president of MIA, told Business Standard, "In order to set up ABC, Mohali Industries Association signed a MoU with the US commerce department. This is for the first time that American SMEs are reaching out to Indian SMEs and this can prove to be an historic step towards enhancing trade relations between the two countries."
He added, "ABC is a novel concept as, to date, SMEs of the two countries did not have an opportunity to connect with each other. The setting up of ABC will be beneficial for all members who are looking for an opportunity to do business with the US. It will not only boost Indian exports to the US but will also help Indian SMEs to reach out to the best technology."
Mohali, a planned satellite town of Chandigarh, has a large concentration of SMEs which manufacture a wide range of products including railway components, auto parts, tractor parts, sanitary fittings, furniture, PVC pipes, chemicals, corrugated boxes, rubber and silicon material, precision parts, industrial gases, engineering items and electronic goods. The SMEs also manufacture TV sets, transformers, electronic sockets, mini computers, electronic telecom equipment, dish antennas and computer peripherals.
In a press statement, Nancy J Powell, US Ambassador to India, said the ABC in Mohali will act as a clearing house to connect its 450 member firms with US companies interested in doing business with them. Karan Avtar Singh, Punjab's principal secretary, industries and commerce, assured American and Indian SMEs that the Punjab government would help them to connect, so that trade between the two countries increase
Aurobindo Pharma to launch 20 drugs in US this year
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.
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.
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.
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