New Delhi: India has signed the “Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled (MVT)”.
The Treaty was adopted in June last year. India’s ratification of the Treaty will facilitate import of accessible format copies from the member states by Indian educational institutions, libraries and institutions working for the benefit of visually impaired persons, the Ministry of External Affairs said on Thursday.
The Treaty will also facilitate translation of imported accessible format copies and export of accessible format copies in Indian languages. The Indian Copyright (Amendment) Act, 2012 is in harmony with the Marrakesh Treaty.
Success in my Habit
Sunday, May 4, 2014
E-tailers drive ad campaigns beyond digital
New Delhi: After making a debut as a sponsor for the Indian Premier League (IPL) twenty-twenty cricket tournament, Amazon, world’s biggest online retailer, is expected to launch a television advertisement campaign soon. Other e-commerce companies, such as Quikr, Flipkart, Snapdeal and Jabong, are also going all out on 360-degree advertising, going beyond digital marketing.
Category-specific companies such as furniture e-tailer FabFurnish also plan to run television ad campaigns. Experts say rarely do niche brands in such categories in the physical segment adopt such branding strategies.
Disadvantage digital
“We have already launched a new television campaign. This is because digital advertising is silent advertising; it can’t do brand story-telling for us. Also, television brings credibility to the brand,” says Piyush Bansal, founder and chief executive, Lenskart (which sells spectacles).
As e-commerce companies increasingly position themselves in the mainstream, part of their expansion strategy is to use mass media platforms such as television and radio to establish themselves, not just in e-commerce, but to a host of offline consumers as well, analysts say. The aim to capture a larger share of the market has raised the advertising budgets of most e-commerce companies. On an average, the advertising budgets of these companies are pegged at 20 per cent of their revenues.
Recently, Manish Kalra, head (integrated marketing), Amazon India, told Business Standard the company was involved in the IPL to connect with the Indian audience.
FabFurnish, which has a mixed format (it also has offline stores), uses mass media channels to reach untapped consumers or first-time buyers, primarily targeting the urban middle class. “During and after a few months of the television campaign, our traffic increased two and half times. We can afford to run such campaigns because furniture is a high-margin category,” said Vikram Chopra, chief executive and co-founder of the company.
Fashion e-tailer Jabong insists on an optimal mix. Apart from TV campaigns, the company has also sponsored leading fashion events, such as the Lakme Fashion Week in Mumbai. Rival Myntra was a sponsor for the Wills Lifestyle Fashion Week here.
Experts say television addresses 40-60 per cent of those who do not use internet. It is believed the two channels aid each other in furthering the cause of a brand to consumers.
For some, mass media helps address a wider audience. “It’s difficult to define our target audience, as we are out there to appeal to everyone who has a business or wants to sell something. Ours is more about building a brand and credibility,” says Pranay Chulet, founder and chief-executive of Quikr.
Category-specific companies such as furniture e-tailer FabFurnish also plan to run television ad campaigns. Experts say rarely do niche brands in such categories in the physical segment adopt such branding strategies.
Disadvantage digital
“We have already launched a new television campaign. This is because digital advertising is silent advertising; it can’t do brand story-telling for us. Also, television brings credibility to the brand,” says Piyush Bansal, founder and chief executive, Lenskart (which sells spectacles).
As e-commerce companies increasingly position themselves in the mainstream, part of their expansion strategy is to use mass media platforms such as television and radio to establish themselves, not just in e-commerce, but to a host of offline consumers as well, analysts say. The aim to capture a larger share of the market has raised the advertising budgets of most e-commerce companies. On an average, the advertising budgets of these companies are pegged at 20 per cent of their revenues.
Recently, Manish Kalra, head (integrated marketing), Amazon India, told Business Standard the company was involved in the IPL to connect with the Indian audience.
FabFurnish, which has a mixed format (it also has offline stores), uses mass media channels to reach untapped consumers or first-time buyers, primarily targeting the urban middle class. “During and after a few months of the television campaign, our traffic increased two and half times. We can afford to run such campaigns because furniture is a high-margin category,” said Vikram Chopra, chief executive and co-founder of the company.
Fashion e-tailer Jabong insists on an optimal mix. Apart from TV campaigns, the company has also sponsored leading fashion events, such as the Lakme Fashion Week in Mumbai. Rival Myntra was a sponsor for the Wills Lifestyle Fashion Week here.
Experts say television addresses 40-60 per cent of those who do not use internet. It is believed the two channels aid each other in furthering the cause of a brand to consumers.
For some, mass media helps address a wider audience. “It’s difficult to define our target audience, as we are out there to appeal to everyone who has a business or wants to sell something. Ours is more about building a brand and credibility,” says Pranay Chulet, founder and chief-executive of Quikr.
TVS Motor lines up Rs 250-crore capex, new launches
Chennai: TVS Motor Company has said it has lined up a capital expenditure (capex) of around Rs 250 crore and is set to launch new products, including an economy-category motorcycle and a scooter, in the next three months. The company is upbeat about FY15 and expects to improve its market share in the two-wheeler industry from 12.5 per cent to 14-14.5 per cent.
"I am happy about the fourth-quarter results and the cash flow was good. The company has generated around Rs 270 crore. Jupiter vehicle is doing very well. I am positive about 2014-15 and want to gain market share," K N Radhakrishnan, president and chief executive of TVS Motor, said while addressing analysts after releasing the fourth-quarter results.
He added that the two-wheeler industry in India would report a moderate growth of 8-10 per cent in 2014-15. According to him, the country's economy will do well in the second half, and, if there is reasonable monsoon, the industry can grow better. Considering these factors, the company hopes for a "great year in 2015-16".
BIG PLANS
The company is betting big on the TVS Jupiter and TVS Wego
About 100,000 units of TVS Jupiter have been sold since its launch in September 2013
In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent
The company's overall capacity is 2.8 million- 3 million two-wheelers
FY15 is going to be a busy year for the company as it has lined up several launches. The new launches - Star City and Scooty - are not variants, but entirely new vehicles. These will be launched within the next three months, followed by an executive motorcycle and a bigger motorcycle by the end of the year. The Wego refreshment will be launched this month, said Radhakrishnan.
S G Murali, chief financial officer at TVS Motor, said: "The new launches will increase the top line of the company, which in turn will increase the margins."
The company is betting big on the TVS Jupiter and TVS Wego. It may be noted that the company sold about 100,000 units of TVS Jupiter since its launch in September 2013. In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent.
"I am happy about the fourth-quarter results and the cash flow was good. The company has generated around Rs 270 crore. Jupiter vehicle is doing very well. I am positive about 2014-15 and want to gain market share," K N Radhakrishnan, president and chief executive of TVS Motor, said while addressing analysts after releasing the fourth-quarter results.
He added that the two-wheeler industry in India would report a moderate growth of 8-10 per cent in 2014-15. According to him, the country's economy will do well in the second half, and, if there is reasonable monsoon, the industry can grow better. Considering these factors, the company hopes for a "great year in 2015-16".
BIG PLANS
The company is betting big on the TVS Jupiter and TVS Wego
About 100,000 units of TVS Jupiter have been sold since its launch in September 2013
In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent
The company's overall capacity is 2.8 million- 3 million two-wheelers
FY15 is going to be a busy year for the company as it has lined up several launches. The new launches - Star City and Scooty - are not variants, but entirely new vehicles. These will be launched within the next three months, followed by an executive motorcycle and a bigger motorcycle by the end of the year. The Wego refreshment will be launched this month, said Radhakrishnan.
S G Murali, chief financial officer at TVS Motor, said: "The new launches will increase the top line of the company, which in turn will increase the margins."
The company is betting big on the TVS Jupiter and TVS Wego. It may be noted that the company sold about 100,000 units of TVS Jupiter since its launch in September 2013. In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent.
Domestic demand, exports spice up masala market
Mumbai: Spices from India are going places, with exports on course to top $3 billion by 2016-17.
Led by creative marketing strategies to ensure high brand recall, spice majors are competing with their domestic counterparts through continuous innovations in packaging, strength in quality and a strong distribution network.
Several local companies have also made their presence felt in the international market, by following a dual branding strategy to cater to the Indian diaspora in the global market.
Indian brands bought out by international spice majors, such as MTR, have also been straddling both strata.
Sanjay Sharma, CEO, MTR Foods, told Business Line , “MTR leads the spices market in Karnataka and AP. We also export these products across many countries, and our popular products are sambar powder, rasam powder and puliogare, amongst others.”
Huge market
Incidentally, Oman is a larges buyer of Puliogare powder, followed by the UAE and South Africa. South Africa turned out to be the largest buyer of puliogare powder during April, with Bangalore accounting for 50.1 per cent of exports, according to available shipment data.
Within the country, the company has been competing with big time players such as MDH, Badshah and Eastern Masala, and has also gone in for diversification.
The Indian spices market is pegged at Rs. 40,000 crore annually, of which the branded segment makes up 15 per cent.
According to Technopak, the branded space is dominated by national brands such as Catch, Everest, Ramdev, among others.
Readymade mixes
“All these brands have focused on product packaging, product customisation to local taste and positioning around quality. They have also ensured innovative marketing strategies for high brand recall,” said Reetesh Shukla, Associate Director, Food Services, Technopak.
Increasing urbanisation paired with a rise in number of working women has reduced the time of cooking.
Consequently, home-makers have started demanding readymade spice mixes such as sabzi masala, garam masala, chicken masala etc.
This has augmented industry revenues, officials said, as both spice mixes and branded spices entail greater profit margins, as compared to straight and unbranded spices.
An official from Everest Spices, which exports 10 per cent of its products to the US, West Asia, Singapore, Australia, New Zealand and East Africa, said: “The total market size of branded spices is estimated at Rs. 6,600 crore, and is growing at 14 per cent annually. While the US is the main importer of Indian spices, contributing 16 per cent of the total export value, it is followed by China at nine per cent. The UAE and Malaysia are at six per cent, while Saudi Arabia, Germany, Sri Lanka, Singapore and the UK at four per cent each.”
Led by creative marketing strategies to ensure high brand recall, spice majors are competing with their domestic counterparts through continuous innovations in packaging, strength in quality and a strong distribution network.
Several local companies have also made their presence felt in the international market, by following a dual branding strategy to cater to the Indian diaspora in the global market.
Indian brands bought out by international spice majors, such as MTR, have also been straddling both strata.
Sanjay Sharma, CEO, MTR Foods, told Business Line , “MTR leads the spices market in Karnataka and AP. We also export these products across many countries, and our popular products are sambar powder, rasam powder and puliogare, amongst others.”
Huge market
Incidentally, Oman is a larges buyer of Puliogare powder, followed by the UAE and South Africa. South Africa turned out to be the largest buyer of puliogare powder during April, with Bangalore accounting for 50.1 per cent of exports, according to available shipment data.
Within the country, the company has been competing with big time players such as MDH, Badshah and Eastern Masala, and has also gone in for diversification.
The Indian spices market is pegged at Rs. 40,000 crore annually, of which the branded segment makes up 15 per cent.
According to Technopak, the branded space is dominated by national brands such as Catch, Everest, Ramdev, among others.
Readymade mixes
“All these brands have focused on product packaging, product customisation to local taste and positioning around quality. They have also ensured innovative marketing strategies for high brand recall,” said Reetesh Shukla, Associate Director, Food Services, Technopak.
Increasing urbanisation paired with a rise in number of working women has reduced the time of cooking.
Consequently, home-makers have started demanding readymade spice mixes such as sabzi masala, garam masala, chicken masala etc.
This has augmented industry revenues, officials said, as both spice mixes and branded spices entail greater profit margins, as compared to straight and unbranded spices.
An official from Everest Spices, which exports 10 per cent of its products to the US, West Asia, Singapore, Australia, New Zealand and East Africa, said: “The total market size of branded spices is estimated at Rs. 6,600 crore, and is growing at 14 per cent annually. While the US is the main importer of Indian spices, contributing 16 per cent of the total export value, it is followed by China at nine per cent. The UAE and Malaysia are at six per cent, while Saudi Arabia, Germany, Sri Lanka, Singapore and the UK at four per cent each.”
Telecom Dept to set up Rs. 1,000-cr app development centre
New Delhi: The Department of Telecom is planning to set up an application development centre with an outlay of Rs. 1,000 crore over a three-year period.
The project will be financed by the Universal Services Obligation fund. The move is aimed at generating income for the USO fund in addition to the revenue share received from telecom operators.
According to the scheme being worked out financing will be limited to Rs. 2 crore per proposer and a single entity will not be given support for more than two projects. Financing will be considered only if the bank appraising the project agrees to finance the requirements initially up to 9 times the contribution of the proposer.
USO fund will reimburse up to four times the project cost. The payment will be made as equity participation.
The proposing entity will have the option to buy back 75 per cent of the equity anytime up to 5 years from disbursement at double the cost.
There will be a two-year moratorium on repayment and interest payment.
Payment of interest during the moratorium period will be borne by the USO fund.
USO fund plans to earmark an outlay of Rs. 50 crore, Rs. 200 core and Rs. 1,000 crore over the first 3 years.
To be called Application Development Infrastructure (ADI), the centre will provide testing facilities, support for launch and commercial run and storage capacities to selected entrepreneurs. The ADI will be connected with all telecom service providers and a payment gateway that will enable application developers to get access to customers across the country from day one of the launch.
The project will be financed by the Universal Services Obligation fund. The move is aimed at generating income for the USO fund in addition to the revenue share received from telecom operators.
According to the scheme being worked out financing will be limited to Rs. 2 crore per proposer and a single entity will not be given support for more than two projects. Financing will be considered only if the bank appraising the project agrees to finance the requirements initially up to 9 times the contribution of the proposer.
USO fund will reimburse up to four times the project cost. The payment will be made as equity participation.
The proposing entity will have the option to buy back 75 per cent of the equity anytime up to 5 years from disbursement at double the cost.
There will be a two-year moratorium on repayment and interest payment.
Payment of interest during the moratorium period will be borne by the USO fund.
USO fund plans to earmark an outlay of Rs. 50 crore, Rs. 200 core and Rs. 1,000 crore over the first 3 years.
To be called Application Development Infrastructure (ADI), the centre will provide testing facilities, support for launch and commercial run and storage capacities to selected entrepreneurs. The ADI will be connected with all telecom service providers and a payment gateway that will enable application developers to get access to customers across the country from day one of the launch.
Government plans special purpose vehicle for 'Brand India Pharma' promotion
Hyderabad: The government will create a special entity in partnership with private firms for a 'Brand India Pharma' campaign aimed at refurbishing drug exporters' image after recent setbacks overseas. The special purpose vehicle will come into being within the next few weeks, commerce secretary Rajeev Kher told ET.
The government is also considering stern action against copycat medicine producers who make substandard and spurious drugs, he said.
At $14.84 billion (Rs 90,000 crore), the growth rate of India's pharmaceutical exports slowed sharply in 2013-14 to just 1.2%. The near stagnation in growth is because of import alerts and bans by US regulators, a slowdown in the European Union and increased competition. India is the third-largest exporter of drugs to the United States by volume.
Kher said the US Food and Drug Administration import alerts, intensive audits and scrutiny of facilities of India pharmaceutical companies were a "matter of concern", and that "the solution lies in cent percent compliance".
Kher said the 'Brand India Pharma' campaign will attempt to build on the country's three key strengths as a major generic drug maker — affordability, quality and accessibility. The government and industry will pool in resources for the campaign. "We are now working towards augmenting the resources and enhancing the activities. The government has done its bit and now it is for the industry to come and contribute."
Utkarsh Palnitkar, partner and national head of life sciences practice at KPMG India, was of the view that the campaign is one part of rehabilitating the damaged image of the industry. "It will definitely help the industry, this campaign. However, branding alone is not enough. The Indian pharmaceutical industry should live up to the standards it is projecting to the world and what the whole world is expecting from it."
Referring to the visit of the USFDA commissioner to India about two months ago, Kher said Indian government authorities held extensive discussions with the representatives of US regulators on concerns over quality. "We found ways of the keeping the interaction regular and how to help our industry in responding to the American market's demands on quality."
PV Appaji, director general of Pharmaceuticals Export Promotion Council, said chief executives of drug companies met Kher recently to discuss the issue of the industry's image. The proposed SPV will be similar to the India Brand Equity Foundation, a trust established by the commerce department. Pharmexcil, he said, will play a "key role" in establishing and managing the proposed trust.
Commerce secretary Kher said the country is unlikely to achieve the guidance of $25 billion of pharma exports during 2014-15 because of several setbacks, including the global slowdown and inability to crack the Japanese and Chinese markets. "We will have to make very important policy decisions and very significant efforts by the industry to reach a good growth figure in pharmaceuticals. We have closed the previous year somewhere at around $15 billion. So surely, I don't expect that we will do $10 billion more in the year 2014-15."
The government is also considering stern action against copycat medicine producers who make substandard and spurious drugs, he said.
At $14.84 billion (Rs 90,000 crore), the growth rate of India's pharmaceutical exports slowed sharply in 2013-14 to just 1.2%. The near stagnation in growth is because of import alerts and bans by US regulators, a slowdown in the European Union and increased competition. India is the third-largest exporter of drugs to the United States by volume.
Kher said the US Food and Drug Administration import alerts, intensive audits and scrutiny of facilities of India pharmaceutical companies were a "matter of concern", and that "the solution lies in cent percent compliance".
Kher said the 'Brand India Pharma' campaign will attempt to build on the country's three key strengths as a major generic drug maker — affordability, quality and accessibility. The government and industry will pool in resources for the campaign. "We are now working towards augmenting the resources and enhancing the activities. The government has done its bit and now it is for the industry to come and contribute."
Utkarsh Palnitkar, partner and national head of life sciences practice at KPMG India, was of the view that the campaign is one part of rehabilitating the damaged image of the industry. "It will definitely help the industry, this campaign. However, branding alone is not enough. The Indian pharmaceutical industry should live up to the standards it is projecting to the world and what the whole world is expecting from it."
Referring to the visit of the USFDA commissioner to India about two months ago, Kher said Indian government authorities held extensive discussions with the representatives of US regulators on concerns over quality. "We found ways of the keeping the interaction regular and how to help our industry in responding to the American market's demands on quality."
PV Appaji, director general of Pharmaceuticals Export Promotion Council, said chief executives of drug companies met Kher recently to discuss the issue of the industry's image. The proposed SPV will be similar to the India Brand Equity Foundation, a trust established by the commerce department. Pharmexcil, he said, will play a "key role" in establishing and managing the proposed trust.
Commerce secretary Kher said the country is unlikely to achieve the guidance of $25 billion of pharma exports during 2014-15 because of several setbacks, including the global slowdown and inability to crack the Japanese and Chinese markets. "We will have to make very important policy decisions and very significant efforts by the industry to reach a good growth figure in pharmaceuticals. We have closed the previous year somewhere at around $15 billion. So surely, I don't expect that we will do $10 billion more in the year 2014-15."
Sunday, April 27, 2014
Bharti Infratel: Investments by telcos to drive gains in FY15
Mumbai: The tide has turned for the telecom sector in India, as growth and profitability has accelerated in recent times. Tower companies are reaping benefits of a turnaround in the sector as operators have started investing in networks to boost data penetration.
Bharti Infratel, a leading tower and infrastructure player, reported robust numbers for the fourth quarter. The company’s consolidated revenues for the March quarter grew four per cent to Rs 2,790 crore compared to the corresponding quarter last year, while consolidated Ebitda grew 16 per cent year-on-year to Rs 1,160 crore. For the full year, revenues grew five per cent to Rs 10,800 crore and Ebitda by 16 per cent to Rs 4,400 crore.
But the real number to track is the tower sharing factor and operating free cash flow (operating profit minus capital expenditure). The company’s tower sharing factor has moved up to two at the end of March from 1.91 a year ago. On a consolidated basis, the average sharing factor stood at 1.96. What this implies is that for incremental capex, the company's profitability is increasing as more companies use the same infrastructure and location.
Analysts say the growth in profitability will not be driven by a higher number of towers added but higher tenancies. In this context, Bharti Infratel stands to gain from the deal it has signed with Reliance Jio.
A detailed report on Bharti Infratel by Nomura, says: “R-Jio’s recent press releases indicate a lot of focus on the data segment including digital services; this coupled with its higher frequency bandwidth (1,800 Mhz and 2,300 MHz) should see a high number of base stations being rolled out. For the bulk of these, we expect R-Jio to lease towers to enter the market sooner.”
With tower sharing factor improving and capital expenditure on new towers remaining stable, the company’s operating income and free cash flows are expected to steadily increase. Consolidated free cash flows increased during the March quarter increased by 12 per cent to Rs 539 crore. For the full financial year, Bharti Infratel's free cash flows jumped 48 per cent year-on-year to Rs 2,600 crore.
Bharti Infratel has spent Rs 1,500 crore on capital expenditure and in FY15 it will be Rs 2,000 crore. Analysts estimates a 20-23 per cent free cash flow compounded annual growth rate over FY13-16. The company’s free cash flow yield is also highest amongst global tower companies.
Bharti Infratel, a leading tower and infrastructure player, reported robust numbers for the fourth quarter. The company’s consolidated revenues for the March quarter grew four per cent to Rs 2,790 crore compared to the corresponding quarter last year, while consolidated Ebitda grew 16 per cent year-on-year to Rs 1,160 crore. For the full year, revenues grew five per cent to Rs 10,800 crore and Ebitda by 16 per cent to Rs 4,400 crore.
But the real number to track is the tower sharing factor and operating free cash flow (operating profit minus capital expenditure). The company’s tower sharing factor has moved up to two at the end of March from 1.91 a year ago. On a consolidated basis, the average sharing factor stood at 1.96. What this implies is that for incremental capex, the company's profitability is increasing as more companies use the same infrastructure and location.
Analysts say the growth in profitability will not be driven by a higher number of towers added but higher tenancies. In this context, Bharti Infratel stands to gain from the deal it has signed with Reliance Jio.
A detailed report on Bharti Infratel by Nomura, says: “R-Jio’s recent press releases indicate a lot of focus on the data segment including digital services; this coupled with its higher frequency bandwidth (1,800 Mhz and 2,300 MHz) should see a high number of base stations being rolled out. For the bulk of these, we expect R-Jio to lease towers to enter the market sooner.”
With tower sharing factor improving and capital expenditure on new towers remaining stable, the company’s operating income and free cash flows are expected to steadily increase. Consolidated free cash flows increased during the March quarter increased by 12 per cent to Rs 539 crore. For the full financial year, Bharti Infratel's free cash flows jumped 48 per cent year-on-year to Rs 2,600 crore.
Bharti Infratel has spent Rs 1,500 crore on capital expenditure and in FY15 it will be Rs 2,000 crore. Analysts estimates a 20-23 per cent free cash flow compounded annual growth rate over FY13-16. The company’s free cash flow yield is also highest amongst global tower companies.
IndusInd Bank to foray into asset reconstruction
Kolkata: IndusInd Bank plans to start asset reconstruction business in the next couple of months. The private-sector lender has already firmed up its business strategy and plans to partner asset reconstruction companies (ARCs) for this new business venture.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
DoT to showcase India as telecom gear manufacturing hub in Israel
Kolkata: A top level telecom department (DoT) team will participate in a global convention next month in Israel to showcase India as a world-class networks gear manufacturing hub amid mounting concerns in the US and Europe about India's local sourcing and screening rules.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
Delhi Airport to become zero diversionary airport
New Delhi: Delhi Airport will soon become a zero-diversionary airport, as the Committee set up in January this year, by the Director General of Civil Aviation, to look into the matter, has submitted its report with 27 recommendations. The Terms of Reference of the Committee were :-
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
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