New Delhi: German tyre major Continental has said India will be a key focus market for the company for new investments as it expands here following the acquisition of Modi Tyres in 2011. The company said it is also open to fresh acquisitions in India to gain a sizeable foothold faster, though there are no immediate targets.
"India is a critical market for Continental and despite short-term challenges, I strongly believe that that it is a strong long-term prospect," Nikolai Setzer, member of Continental's executive board and head of tyre division, told TOI here.
The company sells truck/bus radial and bias tyres, which are manufactured at its plant at Modipuram in Uttar Pradesh. Also, it is present in the passenger car tyre market, while making two-wheeler tyres in partnership with Metro Tyres.
Setzer, who heads Continental's 9.6 billion euro tyre business, said India and other BRIC countries are crucial for registering growth as traditional strongholds in the West decline. "Europe and North America contribute 83% to our sales. But, these regions are only stable and not growing. Out of these mature markets, you can only get a growth of 1-2%.From emerging countries, you can still expect a growth of 4-5%. It can be more in a certain year."
"Last year, we invested about 800 million euros in the tyre division... (and) it is fair to assume that a big portion has gone to BRIC countries." The company has similar investment plans for this year, and Setzer said a substantial portion will again come to BRIC countries. "BRIC will remain a big focus in 2014 as well."
Speaking about the Indian market, he said that having local production adds strength to the company's product portfolio. "We have found the right set-up. We have an installed capacity for bias tyres and these are expected to be a substantial part of the market for some time. Installing radials in that plant also gives us great economies of scale and a leverage that we can use."
Setzer conceded that competition in the Indian market is intense considering that there are strong local players like Apollo, MRF and JK Tyres apart from global biggies like Michelin. "I have not found even one market in the world that is easy to crack... But looking at the market here in India for us, we have now local production for our range. We have premium technology, we have a very experienced sales team that knows the market very well, and we have good dealers. We believe we have everything which we need and a very good package to be successful in the market and find our market place. We see there is room for us."
Asked whether the company is open to fresh acquisitions after buying out Modi in 2011, he said there are no immediate plans, though the company is always open for the right opportunity."We just acquired Modi Tyres in 2011. We have invested 50 million euros which is substantial and which we are currently ramping up. The appetite right now for an additional acquisition is very limited. We have to ramp this up first and make it successful. However, we have the financial means and we are open, and do monitor the market. If there is a great opportunity, we will never rule it out."
Success in my Habit
Thursday, April 24, 2014
M&M in pact to source seed potato from Holland
Mumbai: The agriculture division of Mahindra & Mahindra has entered into a joint venture with Holland-based seed company HZPC for sourcing high quality potato seeds for Indian farmers.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
JSW Steel to commission cold rolling mill in Karnataka tomorrow
Bellary: JSW Steel will commission a Rs. 4,500-crore Cold Rolling Mill (CRM) at its integrated steel plant in Torangal, Karnataka, on Friday.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
Infosys, Orange offer TV apps with customised content
Bangalore: Infosys has partnered with telecom company Orange to provide Internet TV to its customers.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
Canon sets sights on India security-camera market
Hyderabad: At a time when regular compact cameras are losing ground to smartphones equipped with mega-pixel cameras, digital imaging firm Canon India is planning to get into the network security camera market.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
Synechron enters Hyderabad, Bangalore to be 'closer to clients'
Hyderabad: Synechron, which provides IT solutions for the financial services industry, will invest $30-35 million on its expansion in India.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
Shanghai incubator park invites Indian tech companies
Hyderabad: The Shanghai Jiading Advanced Technology Innovation and Business Incubator has set out the red carpet for Indian technology innovators and SMEs, especially in renewable energy, biomedical devices and advanced manufacturing.
A team of officials from the Jiading facility, which has about 130 companies, visited Hyderabad to interact with industrialists and research institutions.
The team is marketing the facility as the first step to enter into the Chinese market, as setting up a unit there has become easier since the Shanghai administration unrolled reforms in the form of a free trade zone policy last year.
“We not only help incubators and start-ups set up their business in Jiading, but we also invest in early stage companies and help other businesses to raise resources,” Jia Zeng Qiang, deputy director, told a meeting of entrepreneurs organised by the Federation of AP Chambers of Commerce and Industries here today.
He said they were especially focussing on innovative technology companies, which can share and grow their technologies jointly with similar Chinese companies.
Satyam-Venture Engineering Services ltd, which provides automotive engineering solutions, is one of the first Indian companies to set up a unit at the Jiading facility. “Our experience has been good. We are now looking at setting up a laboratory there and later expanding into other parts of China,” PV Krishnakumar, Vice-President of the company, said.
A team of officials from the Jiading facility, which has about 130 companies, visited Hyderabad to interact with industrialists and research institutions.
The team is marketing the facility as the first step to enter into the Chinese market, as setting up a unit there has become easier since the Shanghai administration unrolled reforms in the form of a free trade zone policy last year.
“We not only help incubators and start-ups set up their business in Jiading, but we also invest in early stage companies and help other businesses to raise resources,” Jia Zeng Qiang, deputy director, told a meeting of entrepreneurs organised by the Federation of AP Chambers of Commerce and Industries here today.
He said they were especially focussing on innovative technology companies, which can share and grow their technologies jointly with similar Chinese companies.
Satyam-Venture Engineering Services ltd, which provides automotive engineering solutions, is one of the first Indian companies to set up a unit at the Jiading facility. “Our experience has been good. We are now looking at setting up a laboratory there and later expanding into other parts of China,” PV Krishnakumar, Vice-President of the company, said.
TCS, Mitsubishi form $600-m IT services firm
Mumbai: Tata Consultancy Services will merge its two units in Japan with Mitsubishi Corp’s IT subsidiary to create a joint venture company with a revenue base of $600 million in the world’s second-largest market for software services.
Two of TCS’ existing units, Nippon TCS Solution Center Ltd (NTSC) and TCS Japan, will be consolidated with IT Frontier Corp (ITF), the $500-million IT subsidiary of Tokyo-based Mitsubishi Corp.
The new entity, TCS Japan, will have annual revenues of $600 million and a headcount of 2,400. TCS will invest about $50 million ( Rs. 300 crore) to acquire a 51 per cent stake in TCS Japan, with Mitsubishi owning the rest, N Chandrasekaran, TCS Chief Executive Officer and Managing Director, said at a news conference here on Monday.
Scaling up
The joint venture firm will help TCS build scale and acquire new clients in Japan, he added. Before the merger, TCS’ Japan revenues amounted to $100 million.
The Japanese IT services market is worth $100 billion but it accounts for less than 2 per cent of India’s software exports. None of the home-bred IT firms has crossed the $150-million-revenue threshold in Japan, said Arup Roy, Research Director at advisory firm Gartner. Japanese companies have traditionally preferred either local or Chinese firms for technology outsourcing work. The Mumbai-based company will have the option of raising its stake in TCS Japan to 65 per cent at the end of five years, said TCS’ Chief Financial Officer Rajesh Gopinathan.
Mitsubishi, a diversified conglomerate, will contribute about $250 million to the joint venture’s revenue. Tata Japan will get access to several of ITF’s customers in sectors such as financial services, retail, hi-tech and manufacturing, Chandrasekaran said.
Two of TCS’ existing units, Nippon TCS Solution Center Ltd (NTSC) and TCS Japan, will be consolidated with IT Frontier Corp (ITF), the $500-million IT subsidiary of Tokyo-based Mitsubishi Corp.
The new entity, TCS Japan, will have annual revenues of $600 million and a headcount of 2,400. TCS will invest about $50 million ( Rs. 300 crore) to acquire a 51 per cent stake in TCS Japan, with Mitsubishi owning the rest, N Chandrasekaran, TCS Chief Executive Officer and Managing Director, said at a news conference here on Monday.
Scaling up
The joint venture firm will help TCS build scale and acquire new clients in Japan, he added. Before the merger, TCS’ Japan revenues amounted to $100 million.
The Japanese IT services market is worth $100 billion but it accounts for less than 2 per cent of India’s software exports. None of the home-bred IT firms has crossed the $150-million-revenue threshold in Japan, said Arup Roy, Research Director at advisory firm Gartner. Japanese companies have traditionally preferred either local or Chinese firms for technology outsourcing work. The Mumbai-based company will have the option of raising its stake in TCS Japan to 65 per cent at the end of five years, said TCS’ Chief Financial Officer Rajesh Gopinathan.
Mitsubishi, a diversified conglomerate, will contribute about $250 million to the joint venture’s revenue. Tata Japan will get access to several of ITF’s customers in sectors such as financial services, retail, hi-tech and manufacturing, Chandrasekaran said.
Snapdeal buys product discovery site Doozton
Mumbai: Online marketplace Snapdeal.com has acquired product discovery technology firm Doozton.com for an undisclosed amount.
Doozton helps consumers discover trending products and designs from across online fashion portals in India. It also offers suggestions as to what to wear and what to buy for different occasions.
Snapdeal, which got about $134 million in its fourth round of funding from existing investors led by eBay early this year, is also strengthening its position in the apparel and accessories segment through acquisitions and tie-ups.
Industry reports suggest that fashion is the fastest growing category that contributes about 40 per cent of overall sales for any online portal. Growth is happening on the back of growing aspiration, awareness about global trends, and unavailability of brands in smaller towns and an increased usage of smartphones.
Rohit Bansal, Co-Founder and COO, Snapdeal.com, said, “In a short span of time since its inception, Doozton.com has earned popularity amongst its users, making shopping fun, easy and social with the best of fashion and lifestyle product suggestions including clothes, shoes and accessories for men and women. We have seen a 10 times growth in our fashion categories in the last 12 months, and we foresee the benefits of this acquisition will boost this growth.”
Pushpendra Singh, an IIT alumnus and founder of Doozton.com, said that with Snapdeal, the technology of Doozton.com would get a more established platform. Doozton was founded in March 2013.
Doozton helps consumers discover trending products and designs from across online fashion portals in India. It also offers suggestions as to what to wear and what to buy for different occasions.
Snapdeal, which got about $134 million in its fourth round of funding from existing investors led by eBay early this year, is also strengthening its position in the apparel and accessories segment through acquisitions and tie-ups.
Industry reports suggest that fashion is the fastest growing category that contributes about 40 per cent of overall sales for any online portal. Growth is happening on the back of growing aspiration, awareness about global trends, and unavailability of brands in smaller towns and an increased usage of smartphones.
Rohit Bansal, Co-Founder and COO, Snapdeal.com, said, “In a short span of time since its inception, Doozton.com has earned popularity amongst its users, making shopping fun, easy and social with the best of fashion and lifestyle product suggestions including clothes, shoes and accessories for men and women. We have seen a 10 times growth in our fashion categories in the last 12 months, and we foresee the benefits of this acquisition will boost this growth.”
Pushpendra Singh, an IIT alumnus and founder of Doozton.com, said that with Snapdeal, the technology of Doozton.com would get a more established platform. Doozton was founded in March 2013.
Videocon set to acquire Datsons Labs for Rs 350 cr
Mumbai: Videocon Industries is set to acquire Dr Datsons Labs Ltd (DTL) at an enterprise value of Rs 350 crore. Sources said negotiations in this regard were in advanced stages and a deal might be signed soon.
“We are in talks with a couple of merchant bankers for a possible sale. At the same time, we are also evaluating other options, including investments into the company, to meet our proposed capital expenditure plan for expansion projects. By next week, we will be finalising the name of the merchant banker for a possible stake sale,” said DTL Vice-chairman Kannan Vishwanath.
Sources said Videocon had written to Bank of Baroda to extend Rs 35 crore of credit to acquire additional stake in DTL.
Videocon Industries Chairman Venugopal Dhoot declined to comment.
Promoters hold about 40 per cent stake in DTL. In the quarter ended March, foreign portfolio investors, including Davos International Fund, Leman Diversified Fund, Stream Value Fund and Kuvera Fund, acquired 9.35 per cent in DTL from various domestic individual and institutional investors.
During the March quarter, Videocon, through its subsidiaries, had increased its stake in DTL to 19 per cent. In the previous quarter, it held nine per cent stake.
A leading broker on BSE and the National Stock Exchange said the market was abuzz with speculation of Videocon acquiring DTL.
“We are looking for capital investment at least of Rs 250 crore for our proposed expansion in Mahad and Pune. We have already applied for 17 patents of anti-cancer drugs, for which plants and machinery are already in place. With the new investments, we will commence production on these plants,” said Vishwanath. “Through fresh capital infusion, we want to ramp up our presence in developed regions, including Europe and the US.”
DTL, a research-focused pharmaceuticals company, manufactures active pharmaceutical ingredients (APIs) and finished dosage forms and provides contract research and manufacturing services. It focuses on five niche business areas — anti-malaria, multi-therapeutic lozenges, oncology products, HIV products and codeine-based cough syrups. The market leader in the anti-malarial API segment, it is present in 61 countries.
DTL’s market capitalisation stands at Rs 121 crore. The company stock fell to Rs 38.4 at close of trade on BSE, against its previous close of Rs 45.7.
“We are in talks with a couple of merchant bankers for a possible sale. At the same time, we are also evaluating other options, including investments into the company, to meet our proposed capital expenditure plan for expansion projects. By next week, we will be finalising the name of the merchant banker for a possible stake sale,” said DTL Vice-chairman Kannan Vishwanath.
Sources said Videocon had written to Bank of Baroda to extend Rs 35 crore of credit to acquire additional stake in DTL.
Videocon Industries Chairman Venugopal Dhoot declined to comment.
Promoters hold about 40 per cent stake in DTL. In the quarter ended March, foreign portfolio investors, including Davos International Fund, Leman Diversified Fund, Stream Value Fund and Kuvera Fund, acquired 9.35 per cent in DTL from various domestic individual and institutional investors.
During the March quarter, Videocon, through its subsidiaries, had increased its stake in DTL to 19 per cent. In the previous quarter, it held nine per cent stake.
A leading broker on BSE and the National Stock Exchange said the market was abuzz with speculation of Videocon acquiring DTL.
“We are looking for capital investment at least of Rs 250 crore for our proposed expansion in Mahad and Pune. We have already applied for 17 patents of anti-cancer drugs, for which plants and machinery are already in place. With the new investments, we will commence production on these plants,” said Vishwanath. “Through fresh capital infusion, we want to ramp up our presence in developed regions, including Europe and the US.”
DTL, a research-focused pharmaceuticals company, manufactures active pharmaceutical ingredients (APIs) and finished dosage forms and provides contract research and manufacturing services. It focuses on five niche business areas — anti-malaria, multi-therapeutic lozenges, oncology products, HIV products and codeine-based cough syrups. The market leader in the anti-malarial API segment, it is present in 61 countries.
DTL’s market capitalisation stands at Rs 121 crore. The company stock fell to Rs 38.4 at close of trade on BSE, against its previous close of Rs 45.7.
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