Mercedes to assemble new S-Class in Chakan

Pune: German luxury car maker Mercedes-Benz India on Tuesday rolled out its 50,000th car in the form of C-Class Grand Edition from its Chakan plant. The auto major assembles C-Class, ML-Class, GL-Class and E-Class and is ready to assemble new S-Class in April this year from the plant.

Eberhard Kern, managing director and chief executive officer, Mercedes-Benz India, said, “In 2014, we are planning to launch 10 new models in India. As a part of our India expansion plan, new eight cylinder S-500 will be assembled from the Chakan plant in April. The demand for S-Class is quite high. We are committed to the India story and the market potential, and will continue to increase our investments in our facility and infrastructure.”

He added, “The current capacity will be doubled by end of March 2014 and we will soon commence local assembly of newer models, making the company future ready. The C-Class remains one of Mercedes-Benz’s best-sellers in the competitive entry level luxury sedan segment with more than 19,000 units sold till date.”

Price of C-Class (C 200 GE petrol) models starts from Rs 36.81 lakh, while a C-200 CDI diesel variant costs Rs 39.16 lakh.

In the upcoming Auto Expo at Delhi, Mercedes will unveil two new cars — CLA 45 AMG and high protection GLA Concept SUV. In 2013, Mercedes-Benz had introduced eight new products in the country and will launch 10 new models in the year 2014.

Company's periodic investments of Rs 850 crore in India are in line with scheduled ramp-up plans. Mercedes Benz is producing 10,000 units per annum currently. The capacity expansion is already in the process and shall be completed in a months time. The company has step up the localisation to 85 per cent in the production though it varies with the car model.

Eberhard Kern also expressed his condolence over the sudden death of Karl Slym, managing director, Tata Motors.

ClearPath ties up with dental majors to expand in India

Mumbai: ClearPath Orthodontics, an American company specialising in teeth aligners, is expanding in India through tie-ups with leading corporate dental giants across the country. ClearPath entered the Indian market in early 2012.

To provide the standardised experience of unique proprietary, patented and convenient 3D solutions for irregular and crooked teeth, ClearPath has tied up with Axiss Dental (30 centres), Vasan Dental Care Clinics (30 centres), Apollo White Dental (20 centres), MyDentist (65 centres), Narayana Hrudalaya (30 centers), Dentys (10 centres), Dentistree(10 centres), Dentzz (10 centres), Signature Smiles (15 centres), DrSmilez (12 centres) to name a few.

In these 235 outlets across the country, ClearPath is offered as the most preferred mode of aesthetic orthodontic treatment. More than 500 doctors prescribe ClearPath in Delhi, Gurgaon, Mumbai, Pune, Hyderabad, Bangalore, Chennai, Ahmedabad, and Kolkata.

ClearPath is the only company supplying Clear Aligners in India, and already has 100 per cent market share. Out of monopoly, they have seen 200 per cent growth year-on-year in the last few years.

IIT-Madras partners with GE to develop affordable healthcare solutions

Chennai:GE Healthcare, the $18-billion healthcare business of General Electric Company, and Healthcare Technology Innovation Centre (HTIC), a multi-disciplinary R&D centre at IIT-Madras, have come together to develop a range of affordable healthcare solutions.

The three-year collaborative research and development initiative would address the needs in the areas of mother and child health, cardiology and cancer, a statement from GE Healthcare said.

GE will provide a grant of Rs 75 lakh to HTIC towards research and development of these solutions for emerging markets. "The collaboration will encourage open innovation and leverage co-creation of solutions with the involvement of multiple stakeholders such as academia, startups, governments, NGOs and clinicians to achieve these goals," the statement said.

"Accelerating innovation for affordable healthcare requires an ecosystem of partners and collaborative efforts by all stakeholders. We firmly believe that the ideas and innovations developed by the next generation of researchers will be an added benefit to the healthcare ecosystem. This collaboration between HTIC and GE Healthcare will bring together start-up dynamism and corporate scalability to healthcare innovations while putting the unserved customer at the centre of healthcare innovation," Terri Bresenham, president & CEO, GE Healthcare, South Asia, said.

"We believe that a collaborative ecosystem is essential for innovative and disruptive solutions for affordable and accessible healthcare. HTIC today anchors a dynamic med-tech innovation ecosystem of healthcare institutions, industry and government agencies in pursuit of delivering high impact healthcare technologies. We are pleased to join hands with GE Healthcare," Mohanasankar Sivaprakasam, head, Healthcare Technology Innovation Centre, IIT-Madras, said.

HPCL unit buys stake in Australian fields

Mumbai: Prize Petroleum, a wholly-owned subsidiary of Hindustan Petroleum Corporation Ltd (HPCL), has acquired stakes in two Australian hydrocarbon fields for 85 million Australian dollars.

The company said in a statement that it has entered into an agreement with Sydney-based AWE Ltd to acquire 11.25 per cent stake in T/L1 area and 9.75 per cent interest in T/18P area.

The T/L1 field includes Yolla producing field and BassGas infrastructure and T/18P has Trefoil development field. Both the fields are located in shallow water in Bass basin between mainland Australia and Tasmanian offshore area.

In addition to the field, the acquisition will also entail a stake in offshore platform, gas processing plant and a 147-km sub-sea pipeline. Production from Yolla mainly comprises natural gas, LPG and condensate (a low-density mixture of hydrocarbon liquids).

The fields are operated by Origin Energy and held by a consortium in which Origin, AWE and Toyota Tsusho are the major partners.

Anand Sharma meets his counterparts from Zimbabwe and Namibia

New Delhi: The Union Minister of Commerce and Industry Shri Anand Sharma met Mr. M.C. Bimha, Minister of Industry and Commerce, Zimbabwe on the sidelines of the Partnership Summit 2014 in Bengaluru today. Both the sides noted that the present levels of bilateral trade and investment are much below the potential, and that there was a need for revival of Zimbabwe’s manufacturing sector, and greater value addition and beneficiation of natural resources, for Zimbabwe to increase the value of its exports. Shri Sharma put forward his views on cooperation in agro/food processing sector, gems and jewellery, Lines of Credit and various capacity building programmes.

Shri Sharma was also briefed about the current status of USD 750 million iron ore deal between Essar and the Government of Zimbabwe. “Early satisfactory resolution of the pending issues would encourage other investors, especially from India to invest in mining and other sectors in Zimbabwe,” said Shri Sharma. Mr. conveyed that in the last two months, most of the issues have been addressed and conveyed the commitment to help Indian investors.

Shri Sharma will be visiting Zimbabwe in first week of February. He said that both the sides will finalise long term agreement on supply of rough diamonds and establishment of a diamond cutting and polishing institute in Botswana.

Both the leaders also reviewed the status of Line of Credit projects in Zimbabwe. India, in September 2012, approved a Line of Credit (LOC) worth USD 28.6 million for up-gradation of Deka Pumping Station and the River Water Intake System in Zimbabwe. The agreement was signed between Exim Bank and Zimbabwean authorities in June 2013 to implement the LOC. Water and Power Consultancy Services (WAPCOS), a Government of India PSU was appointed as Project Implementation Consultant for the project in November 2013. With these significant developments already in place, Shri Sharma expressed the hope that the LOC will be implemented expeditiously.

Shri Sharma asked for a proposal from Zimbabwe for Indian Institute of Foreign Trade’s offer to conduct an Executive Development Programme on International Business in Zimbabwe.

Shri Sharma also met Mr. Carl H G Schlettwein, Minister of Trade & Industry, Namibia and reviewed the progress of bilateral ties.

Indian CEOs to see 10% salary rise in 2014: Report

Mumbai: Indian chief executive officers and managing directors in India can expect a 10% salary hike in 2014, according to a report by global management consultancy, Hay Group. The annual Top Executive Compensation Report 2013-14 said that median salary for the MD / CEO expected to increase by 10 cent in 2014, up from 9% last year.

The report said that the CEO's top team is also expecting a double-digit pay rise of 10.4%. It added that a large part of CEO compensation mix in India skewed towards guaranteed pay. The firm in its report also said that gaps in succession planning are leading to dearth of internal talent pool for the top job.

Sridhar Ganesan, Country Head for Hay Group India said, "This year, we see a return to double-digit pay increases for CEOs and their top teams, after a dip last year. Despite a very conservative economic outlook, organizations believe that this year's general elections will give a spurt to their business prospects."

The study found that CEO salaries are 2.9 times those of Business Core roles, and 2.8 times those of Business Enabler roles. Further, it said that that CEOs in India are earning 78 times the salary of an entry-level professional, a ratio that has consistently been on the rise. Contiguous to this is the trend of companies preferring to recruit external CEOs rather than hiring internally from the senior management pool.

Sridhar explained that external recruitment of CEOs has grown in both number and intensity. He informed that spotlight falls on the need for robustness in the senior team's succession management processes, to make the internal talent pool relevant for leadership succession.

With respect to the CEO compensation mix, the study said that Indian CEO pay lags behind in its correlation to performance, with a large part skewed towards guaranteed pay. The mature markets, such as USA and Europe, lead the way, in terms of a greater focus on alignment of CEO pay to business performance and shareholders. Hence, total remuneration is heavily biased towards variable pay in the form of long-term incentives and short-term incentives.

Hay Group's Top Executive Compensation Report 2013-2014 aims to provide an analysis of compensation practices for top executives in Indian organizations. This year's report features insights based on the analysis of 2,524 jobs across 176 organizations. All information analyzed is of December 1, 2013.

Deakin University ties up with IIT Madras

Chennai: Deakin University, Australia, has broadened its research link in India through a new partnership with Indian Institute of Technology Madras (IITM).

Ten students undertaking higher degrees by research will collaborate on materials, engineering and manufacturing projects under a memorandum of understanding signed by Deakin Vice-Chancellor Jane den Hollander and IIT Madras Director Bhaskar Ramamurthi.

Under the MoU, five students from each institution will be enrolled in the joint PhD supervision programme. All the ten students will be based at IIT Madras.

The Deakin-enrolled students will be eligible for a three-year fee waiver, an opportunity to study in Australia for three to six months and financial assistance with international conference presentations.

Similarly, IITM-enrolled students will receive scholarships and benefits to be determined by the institution, says a joint press release.

Indian retail market set to touch $865 billion by 2023

Mumbai: Foreign direct investment (FDI) by multinational food processing companies has shot up to $2.14 billion in the country between April and October 2013, and continues to increase significantly.

The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6 per cent to reach $865 billion by 2023.

The opportunities in food and grocery retail in India are immense, given that it constitutes about 69 per cent of India’s total retail market, according to panel members at the seventh Food and Grocery Forum India.

Head honchos of top food and grocery brands spoke on the opportunities that lay ahead for the growth of modern retail. In a session anchored by Shivnath Thukhral, Group President of Essar Group, retail CEOs, experts and consultants shared their insights on the business of food production in the country and some consumption patterns.

The Government on FDI in food processing:
Union Ministry for Food Processing Joint Secretary J.P. Meena said the food processing sector is growing annually at 7.2 per cent compared with 3.9 per cent in agriculture for the last five years, ending 2013.

Growing at a faster rate than the agriculture sector, more and more agriculture produce is getting processed, he said, adding that investment in the food processing sector has been increasing annually at 21.66 per cent.

Foreign direct investment has also been increasing significantly at the rate of average inflow of $117 million for 11 years ending 2011-12. In 2012-13, it was $401 million, the Minister said. He added that exports were increasing at the rate of 20.4 per cent per annum.

Heads of various food and grocery brands:
“Consumers shopping at modern trade have grown from 54 per cent last year to the current 68 per cent, driven by increasing consumption, comfortable shopping experience, new categories, wide variety of brands under a single roof and attractive prices”, said Devendra Chawla, CEO of Food Bazaar.

He noted that a whopping 55 per cent of the modern trade shoppers actively seek promotional deals, 35 per cent of them make bulk purchases, of which 30 per cent are male customers.

Jamshed Daboo, CEO of Trent Hypermarkets, added that the country is moving at a fairly fast pace and that consumers are creating their own opportunities and are becoming exposed to information. The challenge, he noted, lies in serving this change.

While Mark Ashman, CEO of Hypercity, added that consumer demand had seen the growth of Hypercity to the current 15 hypermarkets pan India, since operations started in 2006.

Ajay Kaul, CEO of Domino’s added that a good 50 per cent of the market continued to sit on the sidelines, and that there was a huge opportunity in the migration of traditional to modern trade.

Nestle’s Vice President, Sales of Organised Trade, A.S. Chadha, said mass media has a big role in bringing the rural market to the center-stage, which is setting the actual consumer aspiration. “The key element to be focused on is the supply chain and infrastructure in the Tier-II cities. The potential of these cities can be tapped only by facilitating supply chain and logistics,” he added.

Sharing Chadha’s view, Sumit Chanda, Chief Merchandising Officer of Aditya Birla Retail, said, “Before we talk about consumer engagement, we need to measure consumer’s adaptability and spending power in the Tier II cities. Around 5-6 years ago, television soaps captured the lifestyle of the metros, whereas today all the soaps are showcasing Tier-II and Tier-III cities. This proves that there is a huge aspiration level among the people in these cities which the retailer has yet to tap.”

Government launches Rs 500 crore social venture capital fund

New Delhi: The National Innovation Council, in partnership with the Ministry of Micro, Small and Medium Enterprises (MSME), launched the India Inclusive Innovation Fund (IIIF), an impact investment fund that will invest in ventures catering to the country's poor.

The Rs 500-crore fund, which will be registered under market regulator SEBI's Alternative Investment Fund regulations as a Category -I venture capital fund, will invest in social ventures operating in areas such as healthcare, food, nutrition, agriculture, education and skill development, energy, financial inclusion, water, sanitation and employment generation.

"The needs of the people at the base of the economic pyramid are today served by philanthropy and government grants and subsidies which can never be either adequate or scalable," said Sam Pitroda, chairman of the Council.

Pitroda, who is also the advisor to the prime minister on public information, infrastructure and innovation, said that the fund will look to expand its corpus to Rs. 5,000 crores over the next 24 months.

While the ministry of MSME has committed Rs 100 crore, or 20% of the fund's corpus, with the balance raised from banks, insurance companies, and overseas financial and development institutions.

The India Inclusive Innovation Fund will also partner with various incubators, angel networks and public R&D programmes and laboratories, to identify and invest in ventures that are involved in socially relevant technologies and solutions, with a focus on commercialising the same.

"IIIF seeks to leverage the model of venture capital to transform the lives of the less privileged," said Pitroda.

According to a press statement released by the National Innovation Council, the government will not be involved in the day-to-day operations of the fund, which will be entrusted to an asset management company (AMC), set up as a Section 25 not-for-profit venture.

The AMC will appoint a professional management team for this purpose as also an Investment Committee comprising professionals of repute, which will take all decisions, relating to investments and divestments. A Governing Council comprising government nominees as well as eminent persons from the fields of public service, industry, finance and entrepreneurship will provide oversight.

Civil Aviation Ministry approves operations of Airbus A-380 in India

New Delhi: The Union Minister for Civil Aviation, Shri Ajit Singh has decided to remove restrictions on flights of Airbus A-380 to India. Now, flights of A-380 to India will be allowed to airports which are equipped to handle them. At present only 4 airports, i.e. Delhi, Mumbai, Hyderabad and Bangalore have the required infrastructure for operations of A-380. The decision has been taken after due consultations with the DGCA, Air India and Airports Authority of India.

The operations of A-380 aircraft would be subject to overall traffic entitlements within the bilateral Air Service Agreements (ASAs) with different countries. It has also been decided that wherever the entitlements are not expressed in terms of seats per week, the same should be rationalized and converted into seats per week before allowing A-380 operations to India from these countries. If any Air Service Agreement (ASA) specifically prohibits operation of A-380 to India, the same will also be required to be amended before A380 operations from that country are allowed. The rationalization of traffic rights from services per week to seats per week shall be done through mutual negotiations through Memorandum of Understanding. Before operations of A-380 are allowed, all the airports shall have to get DGCA certification and make adequate preparation in terms of various services required.

The operation of A 380s will help airports to generate more revenue, give more comfortable and luxurious travel to passengers, liberalize the Civil Aviation milieu in India and boost the Iimage of Indian civil aviation in the international market. As per available information, Singapore Airline, Emirates and Lufthansa are interested in operating A-380 aircrafts in India on various international routes.