New Delhi: Credit rating agency Credit Analysis & Research Ltd (CARE) is entering the European market through a Singapore-based international arm.
It has joined hands with credit rating agencies in four other countries — Brazil, Malaysia, South Africa and Portugal — to set up a Singapore-based entity called ARC Rating Holding.
CARE will hold 20 per cent stake in this Singapore entity, which will hold 100 per cent in ARC Rating Europe, D. R. Dogra, Managing Director and CEO, CARE Ratings, told Business Line. “We can’t go international on our own and that is why the joint venture route. But we see lot of growth opportunities for us in Europe. ARC Rating Europe will have an office in London,” Dogra said.
ARC Rating Europe will cater only to large companies and not offer rating services for small businesses.
CARE, which had launched an initial public offering in December 2012, is the country’s second largest credit rating agency by revenue.
A presence in London will help it serve Indian corporate clients, which have spread their wings in Europe, better.
Indian companies need not only look to entrenched foreign credit rating players in those markets for their needs, it was pointed out. Dogra also said that CARE will set up an entity in Mauritius this fiscal, in which it would have a controlling interest of 51 per cent.
The remaining stake may be picked up by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
CARE would look to enter Africa through the Mauritius entity.
In Africa, plans are afoot to offer rating services for large companies as well as small and medium businesses, he said.
Success in my Habit
Sunday, September 29, 2013
Foreign currency bank borrowings norms eased
Mumbai: The Reserve Bank of India (RBI) on Wednesday eased the norms for banks borrowing through foreign currency. For bank borrowings exceeding half the unimpaired tier-I capital made on or before November 30 for availing of RBI’s swap facility, the central bank lowered the maturity requirement from three years to a year.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
After November 30, the maturity for foreign currency borrowing by banks beyond 50 per cent of their tier-I capital would have to be at least three years, RBI said.
“This move is directed towards attracting foreign flows; it is easier to get borrowings for a year, rather than three years,” said S Srinivasaraghavan, head of treasury at Dhanlaxmi Bank.
Experts said the move was aimed at helping the rupee appreciate against the dollar.
On Wednesday, the rupee ended at 62.44/dollar, against the previous close of 62.77/dollar. It touched a low of 62.89 and a high of 62.33 during intra-day trade. The appreciation resulted from dollar sale by companies and custodian banks.
Target to develop 10,000 MW power through solar energy by 2017
New Delhi: Ministry of New and Renewable Energy has set a target of generation of 10,000 Megawatt of power through solar energy by the year 2017. Addressing the Solar Power Developers Meet in the Capital today, the Minister for New and Renewable Energy Dr. Farooq Abdullah said that the Phase I of the Jawaharlal Nehru National Solar Mission has been very successful wherein 1685 MW of solar power was generated as against the target of 1100 MW.
The Minister informed that large tracks of land have been identified in Rajasthan, Kargil and Ladakh which have immense potential of generation of solar power. Dr. Abdullah said that the main challenge was starting a transmission line in the areas of Kargil and Ladakh so that power could be evacuated to the other parts of the country. He also focused on the need for breakthrough in new research to ensure storage of solar energy for greater time period. The Minister highlighted the new initiatives for ensuring greater use of solar power in the Government buildings and also said that the Ministry planned to use mobile towers in a way that they could generate power through solar and wind energy.
On this occasion, the Minister gave awards to 13 organisations/ companies for having done commendable work in the first phase of the Jawaharlal Nehru National Solar Mission. He expressed the hope that the corporate sector will continue to contribute in a major way to the efforts of the Government in making India one of the leading producers of solar energy.
Mr. Ratan P.Watal, Secretary, MNRE, highlighted importance of development of solar power for meeting the solar requirements of around 40% of the population which lacked access to energy resources. Even providing one unit of power to such houses throughout the year would in itself need a generation of 15,000 MW of solar power. The Jawaharlal Nehru National Solar Mission was launched on 11th January, 2010 by the Prime Minister. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. The Mission has targeted a capacity of grid connected solar power generation of 1000 MW within three years of its launch and to reach installed power capacity of 10,000 MW by the year 2017. The target of 20,000 MW for 2022, which if successful, could lead to conditions of grid-competitive solar power.
The Minister informed that large tracks of land have been identified in Rajasthan, Kargil and Ladakh which have immense potential of generation of solar power. Dr. Abdullah said that the main challenge was starting a transmission line in the areas of Kargil and Ladakh so that power could be evacuated to the other parts of the country. He also focused on the need for breakthrough in new research to ensure storage of solar energy for greater time period. The Minister highlighted the new initiatives for ensuring greater use of solar power in the Government buildings and also said that the Ministry planned to use mobile towers in a way that they could generate power through solar and wind energy.
On this occasion, the Minister gave awards to 13 organisations/ companies for having done commendable work in the first phase of the Jawaharlal Nehru National Solar Mission. He expressed the hope that the corporate sector will continue to contribute in a major way to the efforts of the Government in making India one of the leading producers of solar energy.
Mr. Ratan P.Watal, Secretary, MNRE, highlighted importance of development of solar power for meeting the solar requirements of around 40% of the population which lacked access to energy resources. Even providing one unit of power to such houses throughout the year would in itself need a generation of 15,000 MW of solar power. The Jawaharlal Nehru National Solar Mission was launched on 11th January, 2010 by the Prime Minister. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. The Mission has targeted a capacity of grid connected solar power generation of 1000 MW within three years of its launch and to reach installed power capacity of 10,000 MW by the year 2017. The target of 20,000 MW for 2022, which if successful, could lead to conditions of grid-competitive solar power.
Parle Agro launches India’s first coffee carbonated drink
New Delhi: Two decades after Parle sold marquee soft drinks brands such as Thums Up, Limca and Gold Spot to Coca-Cola, one of the Parle brothers, Prakash Chauhan, is returning to the carbonated soft drinks segment. Chauhan's Parle Agro on Tuesday launched Cafe Cuba, the country's first coffee-flavoured carbonated beverage.
The product, available in 250 ml cans priced Rs 20, was recently test-marketed in big cities and is now being taken to smaller towns and rural markets. The maker of juices and fruit drinks such as Frooti, Appy and Hippo expects the new coffee drink to record Rs 1,000-crore sales in the first 12-18 months of its launch.
In an exclusive interaction with ET, Prakash Chauhan said his firm is initially targeting 5% share of the Rs 15,000-crore carbonated soft drinks (CSD) market with Cafe Cuba. Edited excerpts:
Was the decision to re-enter CSD emotional?
It was more business than emotional. Emotions will come in after the product is put in the market. The product is more a strategic one, which we feel has a greater chance of success in a big category.
Cola segment is big in soft drinks, while tea is the preferred choice in the hot beverages space in India. Both your beverage and its name are completely different...
When we were thinking about what could be a possible product, there were many options, including tea and coffee. We decided on coffee and started working with flavour houses to blend the product, which came out good. If we had created another cola, then we would have spent lots of money to compete with rivals. But we created coffee and are not competing with any other products in the market. We are targeting a 5% market share initially.
Will you replicate similar strategy you had for Thums Up and other popular brands?
We will bring a strong character and an identifiable taste, which is not common. Even today, Thums Up has its identity and taste. We don't want a wishywashy personality of the product and have to be focused on what this product is without wavering from it. We will follow everything same as earlier because we should never deviate from a success story.
Won't you feel bad when the new product competes with brands you created years ago?
Not at all. Within our company, if this brand competes with Appy Fizz, it's not a problem. Our focus is on creating strong character and personality and identifiable taste.
The product, available in 250 ml cans priced Rs 20, was recently test-marketed in big cities and is now being taken to smaller towns and rural markets. The maker of juices and fruit drinks such as Frooti, Appy and Hippo expects the new coffee drink to record Rs 1,000-crore sales in the first 12-18 months of its launch.
In an exclusive interaction with ET, Prakash Chauhan said his firm is initially targeting 5% share of the Rs 15,000-crore carbonated soft drinks (CSD) market with Cafe Cuba. Edited excerpts:
Was the decision to re-enter CSD emotional?
It was more business than emotional. Emotions will come in after the product is put in the market. The product is more a strategic one, which we feel has a greater chance of success in a big category.
Cola segment is big in soft drinks, while tea is the preferred choice in the hot beverages space in India. Both your beverage and its name are completely different...
When we were thinking about what could be a possible product, there were many options, including tea and coffee. We decided on coffee and started working with flavour houses to blend the product, which came out good. If we had created another cola, then we would have spent lots of money to compete with rivals. But we created coffee and are not competing with any other products in the market. We are targeting a 5% market share initially.
Will you replicate similar strategy you had for Thums Up and other popular brands?
We will bring a strong character and an identifiable taste, which is not common. Even today, Thums Up has its identity and taste. We don't want a wishywashy personality of the product and have to be focused on what this product is without wavering from it. We will follow everything same as earlier because we should never deviate from a success story.
Won't you feel bad when the new product competes with brands you created years ago?
Not at all. Within our company, if this brand competes with Appy Fizz, it's not a problem. Our focus is on creating strong character and personality and identifiable taste.
TCS, GE join hands to create first all-women BPO in Saudi
Pune: India’s largest information technology services provider, Tata Consultancy Services (TCS), and GE have entered into a joint venture to set up the first all-women business process services centre in Riyadh, Saudi Arabia.
TCS and GE will have 76 per cent and 24 per cent equity, respectively. The first anchor customers would be Saudi Aramco, the kingdom’s national oil company, and GE. The new centre is to serve as a building block to localise a business process outsourcing (BPO) industry in Saudi Arabia. The three partners (Saudi Aramco being the third) are to scale up the new venture, to create up to 3,000 jobs for Saudi female professionals. GE will create up to 1,000 employment opportunities for this initiative.
Cyrus Mistry, chairman of Tata Group, present at the inaugural event, said: “The Tata Group has a long history of encouraging women to achieve their potential and contribute to the community...Saudi Arabia is a focus market for the Tata Group, where we have built strong partnerships, and this ambitious initiative is an example of our commitment to this market.” The Saudi Arabian government is trying to diversify its economy away from a dependence on petroleum, encouraging localisation and growth of a viable employment sector.
“In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide-ranging employment...In recent decades, the world, including Saudi Arabian enterprises, has been outsourcing these functions offshore. It’s time to bring those jobs home,” said Khalid A Al Falih, president and chief executive of Saudi Aramco. GE chairman Jeffrey Immelt said: “We are proud to be supporting female employment opportunities in the kingdom.”
Initially providing services to the anchor clients, the centre is to eventually expand the customer base. In due course, GE and TCS will work with leading Saudi educational institutions for specialised training.
N Chandrasekaran, CEO and MD, Tata Consultancy Services said: “This unique initiative will leverage a new talent pool in the Kingdom to meet the business needs of corporations in the region. It is an example of our long-term commitment to this market. By drawing on our proven global expertise in business process services, our ability to partner with corporations as well as develop talented professionals, we will help achieve the goals of this pioneering venture.”
TCS and GE will have 76 per cent and 24 per cent equity, respectively. The first anchor customers would be Saudi Aramco, the kingdom’s national oil company, and GE. The new centre is to serve as a building block to localise a business process outsourcing (BPO) industry in Saudi Arabia. The three partners (Saudi Aramco being the third) are to scale up the new venture, to create up to 3,000 jobs for Saudi female professionals. GE will create up to 1,000 employment opportunities for this initiative.
Cyrus Mistry, chairman of Tata Group, present at the inaugural event, said: “The Tata Group has a long history of encouraging women to achieve their potential and contribute to the community...Saudi Arabia is a focus market for the Tata Group, where we have built strong partnerships, and this ambitious initiative is an example of our commitment to this market.” The Saudi Arabian government is trying to diversify its economy away from a dependence on petroleum, encouraging localisation and growth of a viable employment sector.
“In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide-ranging employment...In recent decades, the world, including Saudi Arabian enterprises, has been outsourcing these functions offshore. It’s time to bring those jobs home,” said Khalid A Al Falih, president and chief executive of Saudi Aramco. GE chairman Jeffrey Immelt said: “We are proud to be supporting female employment opportunities in the kingdom.”
Initially providing services to the anchor clients, the centre is to eventually expand the customer base. In due course, GE and TCS will work with leading Saudi educational institutions for specialised training.
N Chandrasekaran, CEO and MD, Tata Consultancy Services said: “This unique initiative will leverage a new talent pool in the Kingdom to meet the business needs of corporations in the region. It is an example of our long-term commitment to this market. By drawing on our proven global expertise in business process services, our ability to partner with corporations as well as develop talented professionals, we will help achieve the goals of this pioneering venture.”
Kerala plans to be destination for skills training
Thiruvananthapuram: Kerala is proposing a grand plan to not only skill its young people but also provide related know-how to other parts of the country.
This is being taken up as part of the Prime Minister’s initiative for imparting skills to 50 crore young people by 2022, State Labour Minister Shibu Baby John said.
SKILLING TARGET
A concept note prepared by the State labour department projects that, on a proportionate basis, Kerala will need to skill 1.35 crore youngsters by 2022.
This means that over the next nine-year period, the State would need to target on an average 15 lakh young people for skilling every year.
This represents an eight-fold increase in the numbers that the State is averaging concurrently, the note said.
This is being taken up as part of the Prime Minister’s initiative for imparting skills to 50 crore young people by 2022, State Labour Minister Shibu Baby John said.
SKILLING TARGET
A concept note prepared by the State labour department projects that, on a proportionate basis, Kerala will need to skill 1.35 crore youngsters by 2022.
This means that over the next nine-year period, the State would need to target on an average 15 lakh young people for skilling every year.
This represents an eight-fold increase in the numbers that the State is averaging concurrently, the note said.
IT sector revenue to cross $225 b by 2020
Chennai: Newer technologies such as social media, analytics and cloud computing (SMAC) will help India’s IT-BPO industry cross $225-billion-mark in revenues by 2020, according to a CII report.
These technologies have opened new avenues for the Indian IT-BPO vendors. Since globally companies are adopting SMAC technologies for operational efficiency, Indian IT-BPO vendors can develop their SMAC strategies, according to CII Report – ‘The SMAC Code – Embracing New Technologies for Future Business’ released at at CII Connect 2013.
SMAC enables companies leverage the cloud for storing huge volumes of multi-structured customer data, generated over mobile devices and social media and analyse these data sets for business advantage.
Industry estimates suggest that the global ICT spending will reach the $5-trillion mark by 2020 driven by the combination of social media, mobility, analytics and cloud. In 2012, SMAC approximately contributed about 20 per cent of the total ICT spending and they are collectively, growing at about 18 per cent year-on-year. At this rate, it is expected that these technologies will become 80 per cent of the total spending by 2020, the report said.
The Indian IT industry expanded from an $8 billion in 2000 to an estimated $ 108 billion in 2013. The industry took advantage of the vast pool of highly skilled resources available at low cost, and rode on the wave of application development and BPM services to spread its wings.
However, going forward, the vendors should seek to work closely with their customers to stay abreast of the latest technological developments, and come up with solutions that can take advantage of SMAC, the report said.
These technologies have opened new avenues for the Indian IT-BPO vendors. Since globally companies are adopting SMAC technologies for operational efficiency, Indian IT-BPO vendors can develop their SMAC strategies, according to CII Report – ‘The SMAC Code – Embracing New Technologies for Future Business’ released at at CII Connect 2013.
SMAC enables companies leverage the cloud for storing huge volumes of multi-structured customer data, generated over mobile devices and social media and analyse these data sets for business advantage.
Industry estimates suggest that the global ICT spending will reach the $5-trillion mark by 2020 driven by the combination of social media, mobility, analytics and cloud. In 2012, SMAC approximately contributed about 20 per cent of the total ICT spending and they are collectively, growing at about 18 per cent year-on-year. At this rate, it is expected that these technologies will become 80 per cent of the total spending by 2020, the report said.
The Indian IT industry expanded from an $8 billion in 2000 to an estimated $ 108 billion in 2013. The industry took advantage of the vast pool of highly skilled resources available at low cost, and rode on the wave of application development and BPM services to spread its wings.
However, going forward, the vendors should seek to work closely with their customers to stay abreast of the latest technological developments, and come up with solutions that can take advantage of SMAC, the report said.
RBI relaxes norms to raise funds from abroad
New Delhi: The Reserve Bank of India (RBI) has relaxed norms to raise funds from abroad. All types of companies are now allowed to avail trade credit facility from overseas for import of capital goods.
“On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding US$ 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT),” according to RBI.
The amended policy has come into force with immediate effect.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
The ab initio contract period of 15 months for all trade credits has also been relaxed to 6 months by the RBI.
All other aspects of trade credit policy will remain unchanged and should be complied with, as per RBI.
“On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding US$ 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT),” according to RBI.
The amended policy has come into force with immediate effect.
Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.
The ab initio contract period of 15 months for all trade credits has also been relaxed to 6 months by the RBI.
All other aspects of trade credit policy will remain unchanged and should be complied with, as per RBI.
Monday, September 23, 2013
BHEL secure orders worth over Rs 31,650 crore during FY 2012-13
New Delhi: Bharat Heavy Electricals Ltd secured orders worth over Rs 31,650 crore during financial year 2012-13, an increase of 43 per cent over 2011-12.
The orders were received from sectors like captive power, rail transportation, power transmission, oil and gas, renewable energies and other industrial segments, BHEL chairman and managing director B P Rao said on Friday.
"Despite subdued business conditions in the power and infrastructure sectors coupled with intense competition in domestic and overseas markets, BHEL was able to secure orders worth Rs 31,650 crore, an increase of 43 per cent over 2011-12," he said in his speech to shareholders.
The company had an order book of over Rs 22,096 crore in the 2011-12. The total orders in hand for execution are at about Rs 1,15,100 crore, he said. Rao said that the company clocked a turnover of Rs 50,156 crore and a net profit of Rs 6,615 crore in 2012-13.
BHEL commissioned 10,340 mw power plant equipment during 2012-13. and received export orders of Rs 2,004 crore from 20 countries in 2012-13.
BHEL's June quarter update:-
>Orders received during: Rs 1469 crore
>Power sector: Rs 818 crore
>Industry sector: Rs 648 crore
>Orders bagged for supply of boiler package for 4 units of 120-mw from Jindal Power Ltd for thermal projects in Africa.
>Order book as on June 30, 2013: Rs 1,08,600 crore
>82 per cent by power sector
>10 per cent by industry sector
>8 per cent by international operations.
The orders were received from sectors like captive power, rail transportation, power transmission, oil and gas, renewable energies and other industrial segments, BHEL chairman and managing director B P Rao said on Friday.
"Despite subdued business conditions in the power and infrastructure sectors coupled with intense competition in domestic and overseas markets, BHEL was able to secure orders worth Rs 31,650 crore, an increase of 43 per cent over 2011-12," he said in his speech to shareholders.
The company had an order book of over Rs 22,096 crore in the 2011-12. The total orders in hand for execution are at about Rs 1,15,100 crore, he said. Rao said that the company clocked a turnover of Rs 50,156 crore and a net profit of Rs 6,615 crore in 2012-13.
BHEL commissioned 10,340 mw power plant equipment during 2012-13. and received export orders of Rs 2,004 crore from 20 countries in 2012-13.
BHEL's June quarter update:-
>Orders received during: Rs 1469 crore
>Power sector: Rs 818 crore
>Industry sector: Rs 648 crore
>Orders bagged for supply of boiler package for 4 units of 120-mw from Jindal Power Ltd for thermal projects in Africa.
>Order book as on June 30, 2013: Rs 1,08,600 crore
>82 per cent by power sector
>10 per cent by industry sector
>8 per cent by international operations.
Tech Mahindra sets up engineering college with French university tie-up
Hyderabad: The Mahindras have diversified into the higher education. Its group company, Tech Mahindra, has established an engineering college in association with the 200-year-old French university, Ecole Centrale and Jawaharlal Nehru Technological University.
The institute, which has come up at Tech Mahindra’s Bahadurpally property here, will offer a dual degree. Students will get a B.Tech. degree from JNTU and after completing the fifth year, they would get M.Tech from the French university.
Vineet Nayyar, Executive Vice-Chairman of Tech Mahindra, said though the country had scores of engineering colleges, there is vacuum when it comes to quality. Though the country has some good colleges, they have failed to meet global benchmarks.
After consolidating the activities of college, Tech Mahindra would set up satellite centres in cities such as Jaipur, Pune, Chennai and Goa.
Mahindra Ecole Centrale, which will begin courses from the next summer, will take students based on their performance in the common IIT entrance examination, C. P. Gurnani, Chief Executive officer and Managing Director of Tech Mahindra, said.
The fee structure for the courses, however, has not been decided yet. The curriculum would conform to the norms the AICTE (All-India Council for Technical Education).
The college, however, is not to be restricted to technological studies only. There would be several other streams such as energy, infrastructure and humanities. “The college will have a modern and international academic programme that blends basic scientific and technical education with contemporary industry practices,” Nayyar said.
“Our integrated curriculum will develop students with the unique ability to adapt to global engineering challenges and new technologies that will shape our future and also to master the complexity of multinational organisations,” he said.
The institute, which has come up at Tech Mahindra’s Bahadurpally property here, will offer a dual degree. Students will get a B.Tech. degree from JNTU and after completing the fifth year, they would get M.Tech from the French university.
Vineet Nayyar, Executive Vice-Chairman of Tech Mahindra, said though the country had scores of engineering colleges, there is vacuum when it comes to quality. Though the country has some good colleges, they have failed to meet global benchmarks.
After consolidating the activities of college, Tech Mahindra would set up satellite centres in cities such as Jaipur, Pune, Chennai and Goa.
Mahindra Ecole Centrale, which will begin courses from the next summer, will take students based on their performance in the common IIT entrance examination, C. P. Gurnani, Chief Executive officer and Managing Director of Tech Mahindra, said.
The fee structure for the courses, however, has not been decided yet. The curriculum would conform to the norms the AICTE (All-India Council for Technical Education).
The college, however, is not to be restricted to technological studies only. There would be several other streams such as energy, infrastructure and humanities. “The college will have a modern and international academic programme that blends basic scientific and technical education with contemporary industry practices,” Nayyar said.
“Our integrated curriculum will develop students with the unique ability to adapt to global engineering challenges and new technologies that will shape our future and also to master the complexity of multinational organisations,” he said.
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