Bangalore: New Jersey-headquartered voice messaging and social media solutions firm Kirusa announced the acquisition of start-up Cooltok for an undisclosed sum.
Cooltok specialises in developing technologies for mobile messaging apps for smartphones.
The six-member Cooltok team, including the founder CEO Sreenivas Karanam and co-founders Prakash Kaja and Thomas Mathew, have already joined Kirusa’s office in HSR Layout, Bangalore. Besides the team, Kirusa has acquired all the technology and intellectual property of Cooltok.
“The IP-based technologies that we developed for mobile apps, when combined with the product portfolio of Kirusa and the reach of its partner base across continents, will enable us to address a huge opportunity, going forward,” said Karanam.
Kirusa is associated with over 35 mobile carriers across the globe and its InstVoice app offers seamless telecom messaging.
Success in my Habit
Thursday, May 15, 2014
Cipla invests $1.5 million in Chase Pharma
Mumbai: Drug-maker Cipla has invested $1.5 million ( Rs. 8.9 crore) in Washington-based Chase Pharmaceuticals Corporation Inc, an early stage drug development company.
Chase, which has a patented approach to improve the efficacy, safety and tolerability of existing Alzheimer’s medications, is now focused on developing new approaches to treat the disease.
The investment, done through Cipla’s UK-based subsidiary, Cipla (EU) Ltd, translates into a 14.6 per cent stake in Chase on a fully-diluted basis. Cipla will invest another $4.5 million in Chase on the achievement of certain milestones. In addition to financing Chase, Cipla will collaborate with it to develop the drug. If successful, Cipla may provide low-cost access to Chase’s lead drug in India and South Africa, it added.
New ventures Cipla was in the news last week for reportedly rebuffing predatory overtures from Israeli drug-maker Teva Pharmaceutical Industries, a development Cipla denied in a note to stock exchanges. The funding by Cipla is part of a $21-million investment through a syndicate, said Chandru Chawla, head of Cipla New Ventures. The venture charts an innovation-led course for the company around areas including biologicals and revitalising of existing safe drugs, besides leveraging Cipla’s delivery technologies.
The venture looks at areas that play to Cipla’s strengths and fit into the company’s values of addressing affordability and access to the drug, Chawla told Business Line . Consumer healthcare is another area of interest, he added, without getting into the details.
Funding syndicate Cipla will look at growth opportunities, he said, adding that they are already invested in regenerative medicine and stem-cell therapies through Bangalore-based Stempeutics Research. The investment syndicate consists of Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.
The $21-million two-phase financing will support Phase 2a and Phase 2b clinical trials where Chase’s lead drug CPC 201 will be tested on humans. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Alzheimer’s on the rise Cipla Global Managing Director and Chief Executive Subhanu Saxena said the investment was consistent with Cipla New Ventures’ mission to build more innovation-led business streams for Cipla in the future. Chase’s work on Alzheimer’s assumes importance against the backdrop of its global prevalence. Over five million patients are estimated to suffer from dementia in India, most of who are afflicted with Alzheimer’s, says Cipla. And these numbers are expected to double by 2030.
Unlike other developed nations, in India, the caregiver is the family and the economic and social impact of the illness is far-reaching, the company added.
In North America, Alzheimer’s disease affects over seven million patients, and growing, as the population ages.
The disease costs the US $203 billion annually with projections to reach $1.2 trillion by 2050, Cipla pointed out.
Chase, which has a patented approach to improve the efficacy, safety and tolerability of existing Alzheimer’s medications, is now focused on developing new approaches to treat the disease.
The investment, done through Cipla’s UK-based subsidiary, Cipla (EU) Ltd, translates into a 14.6 per cent stake in Chase on a fully-diluted basis. Cipla will invest another $4.5 million in Chase on the achievement of certain milestones. In addition to financing Chase, Cipla will collaborate with it to develop the drug. If successful, Cipla may provide low-cost access to Chase’s lead drug in India and South Africa, it added.
New ventures Cipla was in the news last week for reportedly rebuffing predatory overtures from Israeli drug-maker Teva Pharmaceutical Industries, a development Cipla denied in a note to stock exchanges. The funding by Cipla is part of a $21-million investment through a syndicate, said Chandru Chawla, head of Cipla New Ventures. The venture charts an innovation-led course for the company around areas including biologicals and revitalising of existing safe drugs, besides leveraging Cipla’s delivery technologies.
The venture looks at areas that play to Cipla’s strengths and fit into the company’s values of addressing affordability and access to the drug, Chawla told Business Line . Consumer healthcare is another area of interest, he added, without getting into the details.
Funding syndicate Cipla will look at growth opportunities, he said, adding that they are already invested in regenerative medicine and stem-cell therapies through Bangalore-based Stempeutics Research. The investment syndicate consists of Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.
The $21-million two-phase financing will support Phase 2a and Phase 2b clinical trials where Chase’s lead drug CPC 201 will be tested on humans. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Alzheimer’s on the rise Cipla Global Managing Director and Chief Executive Subhanu Saxena said the investment was consistent with Cipla New Ventures’ mission to build more innovation-led business streams for Cipla in the future. Chase’s work on Alzheimer’s assumes importance against the backdrop of its global prevalence. Over five million patients are estimated to suffer from dementia in India, most of who are afflicted with Alzheimer’s, says Cipla. And these numbers are expected to double by 2030.
Unlike other developed nations, in India, the caregiver is the family and the economic and social impact of the illness is far-reaching, the company added.
In North America, Alzheimer’s disease affects over seven million patients, and growing, as the population ages.
The disease costs the US $203 billion annually with projections to reach $1.2 trillion by 2050, Cipla pointed out.
Indian Institute of Management Ahmedabad ranks 4th in Economist good value MBAs
Mumbai: Indian Institute of Management Ahmedabad (IIMA) has been globally ranked fourth-best overall among 20 leading B-schools globally in terms of return on investment for its students by The Economist good value MBA, the institute said in a release citing an article in the publication.
"The Economist calculations are one measure of how economically rewarding our students find the IIMA experience to be," said Prof Ashish Nanda, director, IIMA."But returns from education at IIMA go beyond purely pecuniary returns to self. Our alumni consistently report that they find the IIMA learning experience life-changing," he said in the press release. Many of them go on to contribute meaningfully to the enterprises they join and the society in which they live, Nanda added.
"The Economist calculations are one measure of how economically rewarding our students find the IIMA experience to be," said Prof Ashish Nanda, director, IIMA."But returns from education at IIMA go beyond purely pecuniary returns to self. Our alumni consistently report that they find the IIMA learning experience life-changing," he said in the press release. Many of them go on to contribute meaningfully to the enterprises they join and the society in which they live, Nanda added.
IT infra market will touch $1.9 b this year: Gartner
Mumbai: The Indian IT infrastructure market — comprising server, storage and networking equipment — is set to grow by four per cent this year to touch $1.9 billion, research firm Gartner has indicated.
“In the global landscape, India is a promising IT infrastructure market through 2017…The global IT infrastructure investment is expected to be almost flat in 2014 and will be primarily driven by hyper scale and data centre modernisation initiatives,” said Mike Harris, research group vice-president at Gartner.
Naveen Mishra, research director at Gartner, said that India’s IT infrastructure market will touch $2.35 billion by 2017. “After sluggish market conditions in 2013, the Indian infrastructure market will witness investments primarily fuelled by key IT initiatives that include mobility, cloud and big data,” said Mishra.
The research firm indicates that Indian enterprises will be focusing on building intelligent data centres that focus on optimising existing hardware assets by using additional software capabilities. Separately, Gartner said that competition for talent would determine the success of digital business.
“Bring in people from outside with the required knowledge, skills and competencies — some as external experts, not necessarily as permanent employees. Chief Information Officers who learn to orchestrate talent can take advantage of global ecosystems of expertise to build digital expertise quickly,” said Partha Iyengar, vice-president and distinguished analyst at Gartner.
“In the global landscape, India is a promising IT infrastructure market through 2017…The global IT infrastructure investment is expected to be almost flat in 2014 and will be primarily driven by hyper scale and data centre modernisation initiatives,” said Mike Harris, research group vice-president at Gartner.
Naveen Mishra, research director at Gartner, said that India’s IT infrastructure market will touch $2.35 billion by 2017. “After sluggish market conditions in 2013, the Indian infrastructure market will witness investments primarily fuelled by key IT initiatives that include mobility, cloud and big data,” said Mishra.
The research firm indicates that Indian enterprises will be focusing on building intelligent data centres that focus on optimising existing hardware assets by using additional software capabilities. Separately, Gartner said that competition for talent would determine the success of digital business.
“Bring in people from outside with the required knowledge, skills and competencies — some as external experts, not necessarily as permanent employees. Chief Information Officers who learn to orchestrate talent can take advantage of global ecosystems of expertise to build digital expertise quickly,” said Partha Iyengar, vice-president and distinguished analyst at Gartner.
Monday, May 12, 2014
M&M opens US factory
Mumbai: Utility and tractor vehicle maker Mahindra & Mahindra has inaugurated a factory and a research centre for electric two-wheelers in Ann Arbor, Michigan, US.
With an initial capacity to produce 9,000 vehicles annually, the plant will assemble its first electric two-wheeler later this year; the capacity can be increased to 20,000 a year later. The company did not disclose the investment for setting up the two units.
Christened Genze, it is the first electric vehicle from the company after it entered the two-wheeler segment in 2008.
In a few months, M&M will launch the scooter in the US. The company says it will give a top speed of 48 kilometres an hour and a range of 48 km on a full charge.
M&M has not said how much the Genze would cost, though certain reports expect it to be around $3,000 (Rs 1.8 lakh), about six times the price for the e-bike sold in India, with higher top speed and greater range.
Genze will be the first its kind in the US. Owning or using the vehicle will not require a licence in most states there, the Mumbai-based company said.
Anand Mahindra, chairman, said, "The North American Technical Center and Genze represent important disruptive product incubators for the Mahindra group."
A single-seater and powered by a lithium-ion battery, the Genze comes with a seven-inch weatherproof touchscreen instrument panel. It also has an under-seat cellphone and laptop charger. The Genze was conceived in the Silicon Valley and tested & assembled in the US.
With an initial capacity to produce 9,000 vehicles annually, the plant will assemble its first electric two-wheeler later this year; the capacity can be increased to 20,000 a year later. The company did not disclose the investment for setting up the two units.
Christened Genze, it is the first electric vehicle from the company after it entered the two-wheeler segment in 2008.
In a few months, M&M will launch the scooter in the US. The company says it will give a top speed of 48 kilometres an hour and a range of 48 km on a full charge.
M&M has not said how much the Genze would cost, though certain reports expect it to be around $3,000 (Rs 1.8 lakh), about six times the price for the e-bike sold in India, with higher top speed and greater range.
Genze will be the first its kind in the US. Owning or using the vehicle will not require a licence in most states there, the Mumbai-based company said.
Anand Mahindra, chairman, said, "The North American Technical Center and Genze represent important disruptive product incubators for the Mahindra group."
A single-seater and powered by a lithium-ion battery, the Genze comes with a seven-inch weatherproof touchscreen instrument panel. It also has an under-seat cellphone and laptop charger. The Genze was conceived in the Silicon Valley and tested & assembled in the US.
Indian IT companies to tap big business in Europe; up hiring plans
Banglore/ Mumbai: With European corporations emulating their American counterparts to make outsourcing mainstream , Indian software companies are tapping into a rich new vein of opportunity and are hiring and looking for acquisitions to grow in the continent.
As Europe rebounds from the lows of the economic crisis, firms on the continent are beginning to raise their IT spending as they look to cut costs and focus on a digital future. They are also open to working with Indian players, something that was not common a few years ago.
"Large European accounts are now ready to work with Indian IT players. Pressure to save costs is one of the reasons, but more importantly Indian IT companies have been selling more consulting work and delivering high-value services," Christophe Chalons, partner and chief analyst at Europe-focused IT advisory firm Pierre Audoin Consultants, told ET.
ET reported last month that Schneider Electric, whose $1 billion IT services contract with French provider Capgemini is due to be renewed, is looking at Indian outsourcers for the first time. At least three European deals with annual value of $100 million are being negotiated with Indian IT companies currently, industry players said.
Part of the reason Europe is warming to Indian IT players is the building of local talent, either through organic on-site hiring or through acquisitions. Tata Consultancy Services BSE -1.44 %, India's largest IT provider, invested in on-site hiring in Europe and then doubled down with a $75 million acquisition of French IT services player Alti last year.
Infosys BSE 0.40 % spent $349 million to buy Zurich-based consultancy firm Lodestone in 2012, and more acquisitions are on the cards. "We have invested in different European markets, built nearshore centres in Budapest, Poland etc. We may look at acquisition targets. We may look at something like a Lodestone in Nordics," said BG Srinivas, one of two presidents at Infosys who used to oversee Europe for the Bangalore-based company.
Indian IT players are focused on the European market both for acquisitions of companies and captive units. "In terms of acquisitions, Indian IT companies are looking actively at continental Europe and also eastern Europe for deals. Small consulting firms in stronger markets in northern Europe are very much on the radar," an investment banker, who declined to be identified, told ET.
The deal pipeline and conversion rate in Europe is also increasing. TCS BSE -1.44 % reported strong growth from the continent in its fourth-quarter results, higher growth than the US - the longtime dominant market. Continental Europe accounted for 11.4% of TCS' revenue for FY2014, up from 9.6% for FY2013. Other IT players also see a major scope to do well in that market . "Europe is a hunting ground for new opportunities. We see a strong demand pipeline from European customers and many first-time outsourcers." Ashish Gupta, head of Europe, Middle East and Africa, at HCL Technologies BSE -1.43 % said. Indian firms have also started bulking up their senior management on the continent. Late last year, Tech Mahindra BSE 0.38 % appointed managers for countries like Denmark, Sweden, lurin talent away from France's Capgemini. Even smaller player Hexaware BSE -1.87 % appointed a new head for Europe - HCL Tech's Amrinder Singh - last October.
As Europe rebounds from the lows of the economic crisis, firms on the continent are beginning to raise their IT spending as they look to cut costs and focus on a digital future. They are also open to working with Indian players, something that was not common a few years ago.
"Large European accounts are now ready to work with Indian IT players. Pressure to save costs is one of the reasons, but more importantly Indian IT companies have been selling more consulting work and delivering high-value services," Christophe Chalons, partner and chief analyst at Europe-focused IT advisory firm Pierre Audoin Consultants, told ET.
ET reported last month that Schneider Electric, whose $1 billion IT services contract with French provider Capgemini is due to be renewed, is looking at Indian outsourcers for the first time. At least three European deals with annual value of $100 million are being negotiated with Indian IT companies currently, industry players said.
Part of the reason Europe is warming to Indian IT players is the building of local talent, either through organic on-site hiring or through acquisitions. Tata Consultancy Services BSE -1.44 %, India's largest IT provider, invested in on-site hiring in Europe and then doubled down with a $75 million acquisition of French IT services player Alti last year.
Infosys BSE 0.40 % spent $349 million to buy Zurich-based consultancy firm Lodestone in 2012, and more acquisitions are on the cards. "We have invested in different European markets, built nearshore centres in Budapest, Poland etc. We may look at acquisition targets. We may look at something like a Lodestone in Nordics," said BG Srinivas, one of two presidents at Infosys who used to oversee Europe for the Bangalore-based company.
Indian IT players are focused on the European market both for acquisitions of companies and captive units. "In terms of acquisitions, Indian IT companies are looking actively at continental Europe and also eastern Europe for deals. Small consulting firms in stronger markets in northern Europe are very much on the radar," an investment banker, who declined to be identified, told ET.
The deal pipeline and conversion rate in Europe is also increasing. TCS BSE -1.44 % reported strong growth from the continent in its fourth-quarter results, higher growth than the US - the longtime dominant market. Continental Europe accounted for 11.4% of TCS' revenue for FY2014, up from 9.6% for FY2013. Other IT players also see a major scope to do well in that market . "Europe is a hunting ground for new opportunities. We see a strong demand pipeline from European customers and many first-time outsourcers." Ashish Gupta, head of Europe, Middle East and Africa, at HCL Technologies BSE -1.43 % said. Indian firms have also started bulking up their senior management on the continent. Late last year, Tech Mahindra BSE 0.38 % appointed managers for countries like Denmark, Sweden, lurin talent away from France's Capgemini. Even smaller player Hexaware BSE -1.87 % appointed a new head for Europe - HCL Tech's Amrinder Singh - last October.
CSIR-IHBT licenses unique, thermo-stable SOD enzyme to create global niche
New Delhi: CSIR-Institute of Himalayan Bioresource Technology (CSIR-IHBT), Palampur, has signed a MoU with its industrial partner, Phyto Biotech, Kolkata, to formalize Transfer of Technology for production of unique autoclavable Super Oxide Dismutase (SOD) enzyme, used in cosmetic, food and pharmaceutical industries for end applications, like developing anti-ageing creams, extending shelf life of fruits and vegetables and during cryo-surgery and preservation of organelles, respectively. The licensing has brought together the CSIR and the industry to enable commercial production of desired standard SOD so as to create a global niche for the country.
The enzyme was discovered by CSIR-IHBT during a survey at an altitude of over 10, 000 ftin the Western Himalayan region from Potentilaastrosanguniaplant growing under snow cover. Persistent hard work over the years has resulted in the isolation of the SOD gene. Thereafter,a protocol was developed for cloning of the gene in E.coli. The enzyme thus produced,retained the same unique feature as that of the native plant. Applying the knowledge of bioinformatics, the enzyme has been further engineeredby mutation of a single amino acid to increase its consistency and thermo-stability.
The characteristic features of this SOD lies in its stability and functionality ranging from sub-zero to high temperature of>40oc with varying specific activity. Owing to its high antioxidant properties and multiple uses, SOD enjoys high demand and price in the global market.
The enzyme was discovered by CSIR-IHBT during a survey at an altitude of over 10, 000 ftin the Western Himalayan region from Potentilaastrosanguniaplant growing under snow cover. Persistent hard work over the years has resulted in the isolation of the SOD gene. Thereafter,a protocol was developed for cloning of the gene in E.coli. The enzyme thus produced,retained the same unique feature as that of the native plant. Applying the knowledge of bioinformatics, the enzyme has been further engineeredby mutation of a single amino acid to increase its consistency and thermo-stability.
The characteristic features of this SOD lies in its stability and functionality ranging from sub-zero to high temperature of>40oc with varying specific activity. Owing to its high antioxidant properties and multiple uses, SOD enjoys high demand and price in the global market.
Indian IT companies to tap big business in Europe; up hiring plans
Banglore/ Mumbai: With European corporations emulating their American counterparts to make outsourcing mainstream , Indian software companies are tapping into a rich new vein of opportunity and are hiring and looking for acquisitions to grow in the continent.
As Europe rebounds from the lows of the economic crisis, firms on the continent are beginning to raise their IT spending as they look to cut costs and focus on a digital future. They are also open to working with Indian players, something that was not common a few years ago.
"Large European accounts are now ready to work with Indian IT players. Pressure to save costs is one of the reasons, but more importantly Indian IT companies have been selling more consulting work and delivering high-value services," Christophe Chalons, partner and chief analyst at Europe-focused IT advisory firm Pierre Audoin Consultants, told ET.
ET reported last month that Schneider Electric, whose $1 billion IT services contract with French provider Capgemini is due to be renewed, is looking at Indian outsourcers for the first time. At least three European deals with annual value of $100 million are being negotiated with Indian IT companies currently, industry players said.
Part of the reason Europe is warming to Indian IT players is the building of local talent, either through organic on-site hiring or through acquisitions. Tata Consultancy Services BSE -1.44 %, India's largest IT provider, invested in on-site hiring in Europe and then doubled down with a $75 million acquisition of French IT services player Alti last year.
Infosys BSE 0.40 % spent $349 million to buy Zurich-based consultancy firm Lodestone in 2012, and more acquisitions are on the cards. "We have invested in different European markets, built nearshore centres in Budapest, Poland etc. We may look at acquisition targets. We may look at something like a Lodestone in Nordics," said BG Srinivas, one of two presidents at Infosys who used to oversee Europe for the Bangalore-based company.
Indian IT players are focused on the European market both for acquisitions of companies and captive units. "In terms of acquisitions, Indian IT companies are looking actively at continental Europe and also eastern Europe for deals. Small consulting firms in stronger markets in northern Europe are very much on the radar," an investment banker, who declined to be identified, told ET.
The deal pipeline and conversion rate in Europe is also increasing. TCS BSE -1.44 % reported strong growth from the continent in its fourth-quarter results, higher growth than the US - the longtime dominant market. Continental Europe accounted for 11.4% of TCS' revenue for FY2014, up from 9.6% for FY2013. Other IT players also see a major scope to do well in that market . "Europe is a hunting ground for new opportunities. We see a strong demand pipeline from European customers and many first-time outsourcers." Ashish Gupta, head of Europe, Middle East and Africa, at HCL Technologies BSE -1.43 % said. Indian firms have also started bulking up their senior management on the continent. Late last year, Tech Mahindra BSE 0.38 % appointed managers for countries like Denmark, Sweden, lurin talent away from France's Capgemini. Even smaller player Hexaware BSE -1.87 % appointed a new head for Europe - HCL Tech's Amrinder Singh - last October.
As Europe rebounds from the lows of the economic crisis, firms on the continent are beginning to raise their IT spending as they look to cut costs and focus on a digital future. They are also open to working with Indian players, something that was not common a few years ago.
"Large European accounts are now ready to work with Indian IT players. Pressure to save costs is one of the reasons, but more importantly Indian IT companies have been selling more consulting work and delivering high-value services," Christophe Chalons, partner and chief analyst at Europe-focused IT advisory firm Pierre Audoin Consultants, told ET.
ET reported last month that Schneider Electric, whose $1 billion IT services contract with French provider Capgemini is due to be renewed, is looking at Indian outsourcers for the first time. At least three European deals with annual value of $100 million are being negotiated with Indian IT companies currently, industry players said.
Part of the reason Europe is warming to Indian IT players is the building of local talent, either through organic on-site hiring or through acquisitions. Tata Consultancy Services BSE -1.44 %, India's largest IT provider, invested in on-site hiring in Europe and then doubled down with a $75 million acquisition of French IT services player Alti last year.
Infosys BSE 0.40 % spent $349 million to buy Zurich-based consultancy firm Lodestone in 2012, and more acquisitions are on the cards. "We have invested in different European markets, built nearshore centres in Budapest, Poland etc. We may look at acquisition targets. We may look at something like a Lodestone in Nordics," said BG Srinivas, one of two presidents at Infosys who used to oversee Europe for the Bangalore-based company.
Indian IT players are focused on the European market both for acquisitions of companies and captive units. "In terms of acquisitions, Indian IT companies are looking actively at continental Europe and also eastern Europe for deals. Small consulting firms in stronger markets in northern Europe are very much on the radar," an investment banker, who declined to be identified, told ET.
The deal pipeline and conversion rate in Europe is also increasing. TCS BSE -1.44 % reported strong growth from the continent in its fourth-quarter results, higher growth than the US - the longtime dominant market. Continental Europe accounted for 11.4% of TCS' revenue for FY2014, up from 9.6% for FY2013. Other IT players also see a major scope to do well in that market . "Europe is a hunting ground for new opportunities. We see a strong demand pipeline from European customers and many first-time outsourcers." Ashish Gupta, head of Europe, Middle East and Africa, at HCL Technologies BSE -1.43 % said. Indian firms have also started bulking up their senior management on the continent. Late last year, Tech Mahindra BSE 0.38 % appointed managers for countries like Denmark, Sweden, lurin talent away from France's Capgemini. Even smaller player Hexaware BSE -1.87 % appointed a new head for Europe - HCL Tech's Amrinder Singh - last October.
April exports touch five-month high
New Delhi: After two months of contraction, merchandise exports rose at a five-month high of 5.3 per cent in April to $25.6 billion, against $24.35 billion in the same month last year, showed official data released on Friday.
Imports, on the other hand, were down were down 15 per cent to $35.7 billion in the month compared to $42.02 billion a year ago. This left trade deficit lower by 42.9 per cent at $10.1 billion in April against $17.7 billion a year before.
This would augur well for the already falling current account deficit and help ease pressure on the rupee.
The outbound shipments were driven by high-value engineering goods, drugs and pharmaceuticals, and some textile products. Exports of engineering products, which displaced petroleum products as the top most outbound shipment item, rose 21.3 per cent to $5.7 billion, while pharma were up 10.4 per cent to $1.3 billion. Besides, marine products increased 42.2 per cent, ceramic and glassware grew by 32 per cent and leather products 30.4 per cent. In textiles, readymade garments rose 14.3 per cent.
However, exports of petroleum products were up only 0.7 per cent to $5.15 billion. Gems and jewellery, facing rough weather because of curbs on gold and silver imports, contracted 8.1 per cent to $3.3 billion. Exports of iron ore, still facing various prohibitions, rose 23.4 per cent, albeit at a low level of $152 million.
While oil imports fell only 0.6 per cent to nearly $13 billion over $13.05 billion, non-oil imports fell 21.5 per cent to $22.7 billion, a large part of which came from the contraction in gold and silver imports. Gold imports fell 74 per cent, reaching $1.75 billion, over $6.8 billion earlier. Silver contracted 26 per cent to $467.6 million as against $636.6 million in the same month a year before. Non-oil, non-gold imports declined 3.9 per cent to $20.5 billion in April against $21.35 billion in the same month a year before, showing industrial sluggishness still there in the economy.
Project goods fell 14.8 per cent to $343 million against $402 million earlier, reflecting the downturn still in industry. Transport equipment and machinery moved down by 38.3 per cent and six per cent, respectively. Exporters believe the rise in in April was because of a rise in demand in the US and the European Union.
According to a report by YES Bank, the situation in the US and the globe in general will improve once short-term problems related to the weather fade away. That will prove beneficial for our merchandise export.
Part of the export rise was also due to a base effect, “related to higher shipments in February-March 2013, prior to the expiry of various export incentives in March 2013. Merchandise exports are expected to continue to record positive growth in the ongoing quarter, benefiting from healthy global demand and a stable rupee,” said Aditi Nayar, senior economist, ICRA.
The International Monetary Fund estimated US economic growth at 2.8 per cent in 2014 against 1.9 per cent in 2013. The euro area is projected to expand 1.2 per cent in 2014 against a contraction of 0.5 per cent in 2013.
However, exporters still demand a priority sector tag.
“Exports should be brought under priority sector lending for credit availability to the sector, with international benchmark rates. Availability of electricity for MSME (medium, small and micro enterprises) manufacturing, with concessional rates, is the need of the hour. Similarly, extra efforts are required on the marketing front of Indian products globally,” said M Rafeeque Ahmed, president, Federation of Indian Export Organisations.
Imports, on the other hand, were down were down 15 per cent to $35.7 billion in the month compared to $42.02 billion a year ago. This left trade deficit lower by 42.9 per cent at $10.1 billion in April against $17.7 billion a year before.
This would augur well for the already falling current account deficit and help ease pressure on the rupee.
The outbound shipments were driven by high-value engineering goods, drugs and pharmaceuticals, and some textile products. Exports of engineering products, which displaced petroleum products as the top most outbound shipment item, rose 21.3 per cent to $5.7 billion, while pharma were up 10.4 per cent to $1.3 billion. Besides, marine products increased 42.2 per cent, ceramic and glassware grew by 32 per cent and leather products 30.4 per cent. In textiles, readymade garments rose 14.3 per cent.
However, exports of petroleum products were up only 0.7 per cent to $5.15 billion. Gems and jewellery, facing rough weather because of curbs on gold and silver imports, contracted 8.1 per cent to $3.3 billion. Exports of iron ore, still facing various prohibitions, rose 23.4 per cent, albeit at a low level of $152 million.
While oil imports fell only 0.6 per cent to nearly $13 billion over $13.05 billion, non-oil imports fell 21.5 per cent to $22.7 billion, a large part of which came from the contraction in gold and silver imports. Gold imports fell 74 per cent, reaching $1.75 billion, over $6.8 billion earlier. Silver contracted 26 per cent to $467.6 million as against $636.6 million in the same month a year before. Non-oil, non-gold imports declined 3.9 per cent to $20.5 billion in April against $21.35 billion in the same month a year before, showing industrial sluggishness still there in the economy.
Project goods fell 14.8 per cent to $343 million against $402 million earlier, reflecting the downturn still in industry. Transport equipment and machinery moved down by 38.3 per cent and six per cent, respectively. Exporters believe the rise in in April was because of a rise in demand in the US and the European Union.
According to a report by YES Bank, the situation in the US and the globe in general will improve once short-term problems related to the weather fade away. That will prove beneficial for our merchandise export.
Part of the export rise was also due to a base effect, “related to higher shipments in February-March 2013, prior to the expiry of various export incentives in March 2013. Merchandise exports are expected to continue to record positive growth in the ongoing quarter, benefiting from healthy global demand and a stable rupee,” said Aditi Nayar, senior economist, ICRA.
The International Monetary Fund estimated US economic growth at 2.8 per cent in 2014 against 1.9 per cent in 2013. The euro area is projected to expand 1.2 per cent in 2014 against a contraction of 0.5 per cent in 2013.
However, exporters still demand a priority sector tag.
“Exports should be brought under priority sector lending for credit availability to the sector, with international benchmark rates. Availability of electricity for MSME (medium, small and micro enterprises) manufacturing, with concessional rates, is the need of the hour. Similarly, extra efforts are required on the marketing front of Indian products globally,” said M Rafeeque Ahmed, president, Federation of Indian Export Organisations.
FII holding in India Inc hit a record high of 25% in Q4
Mumbai: Foreign institutional investors (FIIs) continue to drive Indian equities. In the March quarter, FIIs have invested Rs 21,921 crore ($3.6 billion), owning a quarter of the top 75 listed stocks of India. During the quarter, their stakes have risen by 33 basis points sequentially.
Analysts track the quarterly ownership data to track purchases and preferences of large institutions both in terms of sectors and specific stocks. Foreign institutions benchmark their investments against the MSCI Emerging Market Index.
As far as the broader market is concerned, their stakes have risen by 17 basis points to 22.3 per cent in the 1,200 companies listed on the National Stock Exchange (NSE).
Morgan Stanley, which has analysed the change in ownership pattern of Indian equities in the March quarter, says FIIs’ stakes in Indian companies have hit a record high. The estimated value of FII holdings in India stands at $279 billion. Taking a cue from FIIs, domestic institutions too have turned buyers with their stakes rising by 30 basis points in the three months ended March. The only category that has reduced their stakes are promoters and their stake has declined 98 basis points to 49.3 per cent during the quarter.
The steady buying by FIIs and domestic institutions has taken their average sector positions to a five-year high. Ownership data suggests that FIIs remain bullish about financials, consumer discretionary and telecom. They are underweight in technology and healthcare. Holdings in financials have hit a eight-and-a-half-year high, while stakes in consumer staples have hit a five-year low. Morgan Stanley says domestic institutions added most positions in financials and reduced positions the most in materials and technology.
The stock that has been sold by both categories of institutional investors — FIIs and DIIs — is Infosys, while State Bank of India remained the most bought stock. The names most heavily purchased by FIIs were Axis Bank and Tata Steel, whereas Glaxo and Tata Power were the most sold. FIIs are overweight on ICICI Bank but were underweight on Reliance Industries. Currently, FIIs own 5.4 per cent of RIL against the stock’s weightage of 7.9 per cent on the MSCI Index.
FIIs have remained overweight (wherein they own higher percentage of stocks compared to their weight on MSCI Index) three out of the 10 MSCI sectors, with financials in lead position, followed by consumer discretionary and telecoms. The biggest underweight positions are in energy, consumer staples and technology.
Going by the inflows in April, the pattern of foreign inflows might continue. In the month of April, the investments of FIIs into Indian equities stood at Rs 10,182 crore. Kotak Institutional Equities, which analyses fund flows into emerging markets, says, “Allocations to India by GEM funds reached 10.5 per cent in March, indicating an overweight status for the region. Net asset allocations to China and Russia have dropped over the past four weeks; Indonesia and Brazil saw the largest upsurge.”
Analysts track the quarterly ownership data to track purchases and preferences of large institutions both in terms of sectors and specific stocks. Foreign institutions benchmark their investments against the MSCI Emerging Market Index.
As far as the broader market is concerned, their stakes have risen by 17 basis points to 22.3 per cent in the 1,200 companies listed on the National Stock Exchange (NSE).
Morgan Stanley, which has analysed the change in ownership pattern of Indian equities in the March quarter, says FIIs’ stakes in Indian companies have hit a record high. The estimated value of FII holdings in India stands at $279 billion. Taking a cue from FIIs, domestic institutions too have turned buyers with their stakes rising by 30 basis points in the three months ended March. The only category that has reduced their stakes are promoters and their stake has declined 98 basis points to 49.3 per cent during the quarter.
The steady buying by FIIs and domestic institutions has taken their average sector positions to a five-year high. Ownership data suggests that FIIs remain bullish about financials, consumer discretionary and telecom. They are underweight in technology and healthcare. Holdings in financials have hit a eight-and-a-half-year high, while stakes in consumer staples have hit a five-year low. Morgan Stanley says domestic institutions added most positions in financials and reduced positions the most in materials and technology.
The stock that has been sold by both categories of institutional investors — FIIs and DIIs — is Infosys, while State Bank of India remained the most bought stock. The names most heavily purchased by FIIs were Axis Bank and Tata Steel, whereas Glaxo and Tata Power were the most sold. FIIs are overweight on ICICI Bank but were underweight on Reliance Industries. Currently, FIIs own 5.4 per cent of RIL against the stock’s weightage of 7.9 per cent on the MSCI Index.
FIIs have remained overweight (wherein they own higher percentage of stocks compared to their weight on MSCI Index) three out of the 10 MSCI sectors, with financials in lead position, followed by consumer discretionary and telecoms. The biggest underweight positions are in energy, consumer staples and technology.
Going by the inflows in April, the pattern of foreign inflows might continue. In the month of April, the investments of FIIs into Indian equities stood at Rs 10,182 crore. Kotak Institutional Equities, which analyses fund flows into emerging markets, says, “Allocations to India by GEM funds reached 10.5 per cent in March, indicating an overweight status for the region. Net asset allocations to China and Russia have dropped over the past four weeks; Indonesia and Brazil saw the largest upsurge.”
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