Mumbai: Japanese pharmaceutical major Meiji Holdings has bought out Temasek-backed Medreich for $290 million (Rs 1,720 crore), the company informed Tokyo Stock Exchange on Wednesday, marking the first inbound investment in the Indian pharmaceutical sector by a Japanese company after Daiichi Sankyo's ill-fated acquisition of Ranbaxy in 2008.
Temasek, the private equity arm of the Singapore government, had invested Rs 109 crore in 2005 for a 25 per cent stake in Medreich which manufactures therapeutic generic and branded drugs. Temasek has made almost a four-fold return on its investment in the company by getting around Rs 430 crore from this transaction.
"Meiji, through its operating subsidiaries, Meiji Seika Pharma, has bought out 100 per cent stake in Medreich as it plans to enter the Indian market," said a person with direct knowledge of the deal. As part of the Japanese company's 2020 vision, it wants to expand to newer geographies, the person explained.
Medreich sells generic pharmaceuticals products to Europe, Asia, and Africa. Its main business partners include GSK, Adcock Ingram, Pfizer, Sanofi, Novartis and Mylan, among others. "The Meiji Group wants to enter the global generics field, particularly in Asia and emerging countries," the company's release in Japanese read.
The $5-billion Meiji Group's acquisition signals a return of longterm confidence in the Indian pharmaceutical sector. Last month, in an all-share transaction, Sun Pharmaceutical Industries bought generic drugmaker Ranbaxy Laboratories for $3.2 billion. Daiichi had paid $4.2 billion for a 69 per cent stake in Ranbaxy in 2008.
"If multinational companies have to make a mark in India, they cannot grow organically, and if they have to acquire companies, they will trigger the foreign direct investment issue," said Sujay Shetty, head of life sciences at consultancy PwC when the Ranbaxy-Sun Pharma deal was announced.
Investment bank JP Morgan was the advisor to Meiji Holdings and NM Rothschild advised the investors and promoters of Medreich. Medreich, founded in 1976 by Rajeev Mehta, Keith De Souza and CP Bothra, has the capability to produce over 500 products with an R& D team of over 75 scientists. The company has been profitable since its inception. The company's branding and name will not be changed post the acquisition, Meiji Holdings has said.
For Temasek, this marks a blockbuster exit from an Indian company. Temasek has made several large private equity investments in India, including in Bharti Airtel, Tata Teleservices in Maharashtra, GMR Energy, National Stock Exchange and Godrej Consumer Products.
Success in my Habit
Sunday, June 15, 2014
Brookfield to buy Unitech subsidiary for Rs 2,000 crore
New Delhi: Canada-based Brookfield Property has entered into an agreement to acquire Candor Investments, a subsidiary of Unitech Corporate Park (UCP), for about Rs 2,000 crore.
In an announcement to London Stock Exchange, UCP said it had entered into an agreement with an affiliate of Brookfield Property Partners for the sale and purchase of the entire issued share capital of Candor, subject to conditions, for a cash consideration of about £205.9 million (about Rs 2,034 crore).
Through its subsidiaries, Candor Investments holds 60 per cent stake in six properties—two in Gurgaon, three in Noida and one in Kolkata; the Unitech group owns the rest of the equity.
LIFE SAVER
Candor Investments holds 60% stake in 6 properties; the Unitech group owns the rest of the equity
Unitech said of a total of 6 special economic zones, it had transferred its interest in four to an independent third party
The amount raised through the deal will likely be used to reduce Unitech’s debt, at Rs 6,200 crore in 2013-14
In a separate statement to the BSE, Unitech said of a total of six special economic zones , it had transferred its interest in four (the most developed) to an independent third party. As part of the transaction, certain affiliates of Unitech will continue to manage and develop these assets to ensure there is no impact on tenants and other stakeholders.
Sources privy to the deal said Unitech sold the stake for about Rs 1,500 crore, adding it was likely most of the funds would be used to refinance the company’s debt. For 2013-14, Unitech’s debt stood at Rs 6,200 crore.
In April this year, UCP had said a party had expressed interest in acquiring its subsidiary Candor Investments, the holding company for UCP’s property interests.
After completion of the deal, UCP is expected to have cash resources to provide shareholders capital returns of about 56 pence/ordinary share in aggregate, a 45 per cent premium to the share price on April 2 and a 79.2 per cent premium to its lowest share price in the last 12 months (September 25, 2013).
The deal will require the approval of shareholders, in accordance with the AIM Rules for Companies. It will also seek shareholder approval to adopt a new investing policy to return capital to shareholders, following the completion of the Candor sale. In this regard, an extraordinary general meeting is scheduled to be held on June 27.
Donald Lake, chairman of UCP, said, “The offer for UCP’s property interests from Brookfield at more than the latest book valuation reflects the hard work put in through recent years to let the office space and grow income to achieve the best possible price on behalf of investors in the company. The independent directors believe the proposed sale represents a very attractive opportunity for investors to realise strong value from the properties and facilitate a distribution of the proceeds.”
On Wednesday, the Unitech stock closed at Rs 33.95 on BSE, down 7.11 per cent.
In an announcement to London Stock Exchange, UCP said it had entered into an agreement with an affiliate of Brookfield Property Partners for the sale and purchase of the entire issued share capital of Candor, subject to conditions, for a cash consideration of about £205.9 million (about Rs 2,034 crore).
Through its subsidiaries, Candor Investments holds 60 per cent stake in six properties—two in Gurgaon, three in Noida and one in Kolkata; the Unitech group owns the rest of the equity.
LIFE SAVER
Candor Investments holds 60% stake in 6 properties; the Unitech group owns the rest of the equity
Unitech said of a total of 6 special economic zones, it had transferred its interest in four to an independent third party
The amount raised through the deal will likely be used to reduce Unitech’s debt, at Rs 6,200 crore in 2013-14
In a separate statement to the BSE, Unitech said of a total of six special economic zones , it had transferred its interest in four (the most developed) to an independent third party. As part of the transaction, certain affiliates of Unitech will continue to manage and develop these assets to ensure there is no impact on tenants and other stakeholders.
Sources privy to the deal said Unitech sold the stake for about Rs 1,500 crore, adding it was likely most of the funds would be used to refinance the company’s debt. For 2013-14, Unitech’s debt stood at Rs 6,200 crore.
In April this year, UCP had said a party had expressed interest in acquiring its subsidiary Candor Investments, the holding company for UCP’s property interests.
After completion of the deal, UCP is expected to have cash resources to provide shareholders capital returns of about 56 pence/ordinary share in aggregate, a 45 per cent premium to the share price on April 2 and a 79.2 per cent premium to its lowest share price in the last 12 months (September 25, 2013).
The deal will require the approval of shareholders, in accordance with the AIM Rules for Companies. It will also seek shareholder approval to adopt a new investing policy to return capital to shareholders, following the completion of the Candor sale. In this regard, an extraordinary general meeting is scheduled to be held on June 27.
Donald Lake, chairman of UCP, said, “The offer for UCP’s property interests from Brookfield at more than the latest book valuation reflects the hard work put in through recent years to let the office space and grow income to achieve the best possible price on behalf of investors in the company. The independent directors believe the proposed sale represents a very attractive opportunity for investors to realise strong value from the properties and facilitate a distribution of the proceeds.”
On Wednesday, the Unitech stock closed at Rs 33.95 on BSE, down 7.11 per cent.
ZTE to set up network operating centre in India
Shanghai: Chinese telecom equipment maker ZTE Corporation plans to set up a Global Network Operating Centre (GNOC) in India.
The centre will manage the networks of multiple telecom carriers across Asia and Africa. Similar centres have been set up in India by rival firms, including Nokia Solutions and Networks and Ericsson. ZTE’s centre would be one of its major GNOCs in the world that will take care of managed service requirement of operators across the regions. Currently, the company has centres in China and Romania, which manages Chinese and European clients, respectively.
“ZTE is in discussions with several telecom operators in Indonesia, Malaysia and Nigeria to manage their networks from a future GNOC in India for both fixed line as well as wireless networks,” Xu Huijun, Senior Vice-President — Wireless Business, ZTE Corporation, told Business Line.
Speaking on the sidelines of Mobile Asia Expo here, he said the centre would also lead to more hirings in India, which it would decide once the plan is finalised.
The centre will manage the networks of multiple telecom carriers across Asia and Africa. Similar centres have been set up in India by rival firms, including Nokia Solutions and Networks and Ericsson. ZTE’s centre would be one of its major GNOCs in the world that will take care of managed service requirement of operators across the regions. Currently, the company has centres in China and Romania, which manages Chinese and European clients, respectively.
“ZTE is in discussions with several telecom operators in Indonesia, Malaysia and Nigeria to manage their networks from a future GNOC in India for both fixed line as well as wireless networks,” Xu Huijun, Senior Vice-President — Wireless Business, ZTE Corporation, told Business Line.
Speaking on the sidelines of Mobile Asia Expo here, he said the centre would also lead to more hirings in India, which it would decide once the plan is finalised.
Exports post double-digit growth in May
New Delhi: Exports posted double-digit growth in May, the highest in six months, as shipments of key commodities, such as engineering goods, petroleum products, readymade garments and pharmaceuticals registered strong increases.
Imports continued to fall during the month, mostly due to declining gold imports, which narrowed the trade deficit sharply compared to the previous year.
Recording growth for two consecutive months of the new fiscal year after a lacklustre performance last year, exports increased 12.4 per cent in May to $28 billion over the same month a year ago.
India had missed its export target of $325 billion last fiscal year, as outbound shipments grew just 3.98 per cent to $312.35 billion because of tepid international demand.
Trade body hopeful
Exuding optimism, exporters’ body FIEO said this may be the beginning of a high-growth period for the sector. “Going by the current trend, exports could reach $360 billion in 2014-15. Most economies, barring a few countries in Latin America, are posting better results, which augurs well for India’s exports in the coming month,” an official release said.
But, the Commerce Ministry is not ready to celebrate yet. “Double-digit growth is encouraging after a period of low growth. If this trend continues I will definitely be saying there is a revival (in global demand). I would like to see what happens next month,” said Commerce Secretary Rajeev Kher, at a press conference.
Imports fell 11.41 per cent in May to $39.23 billion. Gold imports declined to $2.19 billion, plummeting 72 per cent from May 2013.
The Commerce Secretary indicated that the Government may rationalise gold import duties and relax import procedures in the forthcoming Budget. The trade deficit stood at $11.23 billion in May, which was 42 per cent lower than the $19.3 billion posted in the same month last year.
The recent appreciation in the value of the rupee against the dollar is unlikely to have a big impact on exports, said Kher.
According to Crisil, historical evidence suggested that global demand was more important than exchange rates in driving export growth. “With advanced economies’ growth expected to pick up to 2.2 per cent in 2014 from 1.3 per cent in 2013, we expect faster growth in India’s exports this year,” a Crisil release said.
Exports in the April-May period grew 8.87 per cent to $53.63 billion compared with the same period in the previous fiscal year. Imports fell 13.16 per cent in the first two months of the financial year to $74.95 billion, pulling the trade deficit down to $21.32 billion.
Imports continued to fall during the month, mostly due to declining gold imports, which narrowed the trade deficit sharply compared to the previous year.
Recording growth for two consecutive months of the new fiscal year after a lacklustre performance last year, exports increased 12.4 per cent in May to $28 billion over the same month a year ago.
India had missed its export target of $325 billion last fiscal year, as outbound shipments grew just 3.98 per cent to $312.35 billion because of tepid international demand.
Trade body hopeful
Exuding optimism, exporters’ body FIEO said this may be the beginning of a high-growth period for the sector. “Going by the current trend, exports could reach $360 billion in 2014-15. Most economies, barring a few countries in Latin America, are posting better results, which augurs well for India’s exports in the coming month,” an official release said.
But, the Commerce Ministry is not ready to celebrate yet. “Double-digit growth is encouraging after a period of low growth. If this trend continues I will definitely be saying there is a revival (in global demand). I would like to see what happens next month,” said Commerce Secretary Rajeev Kher, at a press conference.
Imports fell 11.41 per cent in May to $39.23 billion. Gold imports declined to $2.19 billion, plummeting 72 per cent from May 2013.
The Commerce Secretary indicated that the Government may rationalise gold import duties and relax import procedures in the forthcoming Budget. The trade deficit stood at $11.23 billion in May, which was 42 per cent lower than the $19.3 billion posted in the same month last year.
The recent appreciation in the value of the rupee against the dollar is unlikely to have a big impact on exports, said Kher.
According to Crisil, historical evidence suggested that global demand was more important than exchange rates in driving export growth. “With advanced economies’ growth expected to pick up to 2.2 per cent in 2014 from 1.3 per cent in 2013, we expect faster growth in India’s exports this year,” a Crisil release said.
Exports in the April-May period grew 8.87 per cent to $53.63 billion compared with the same period in the previous fiscal year. Imports fell 13.16 per cent in the first two months of the financial year to $74.95 billion, pulling the trade deficit down to $21.32 billion.
India’s pvt wealth to rise 150% by 2018: Study
New Delhi: By 2018, India could become the world’s seventh-biggest nation in terms of private wealth, with a 150 per cent jump in total from $2 trillion in 2013 to $5 trillion, suggests a recent study by The Boston Consulting Group (BCG). The country jumped two notches from 17th in 2008 to 15th in 2013.
Though the US and Japan are likely to occupy the first and the third spots, China could consolidate its position as the second-wealthiest nation with its private financial wealth increasing to $40 trillion in 2018 from $22 trillion in 2013.
The number of India’s millionaire households, meanwhile, increased to 175,000 in 2013 from 164,000 the previous year. The US topped in this with 7.1 million households, while China was second (2.3 million) and Japan third (1.2 million).
In its report ‘Global Wealth 2014: Riding a Wave of Growth’, BCG has said soaring equity markets and creation of new rapidly developing economies (RDEs) boosted global private financial wealth, which in 2013 grew 14.6 per cent over the previous year to $152 trillion.
Private financial wealth includes cash and deposits, money market funds and listed securities held either directly or indirectly through managed investments or life and pension assets, and other onshore and offshore assets. But, it excludes investors’ own businesses, any real estate, and luxury goods. “In nearly all countries, the growth in private wealth was driven by the strong rebound in equity markets that began in the second half of 2012. The performance was spurred by a relative economic stability in Europe and the US and signs of recovery in some European countries like Ireland, Spain, and Portugal,” the report says.
“Currency developments were more relevant to private wealth growth in 2013 than in 2012. Driven by the slowdown in quantitative easing, the US dollar gained in value against many currencies, particularly those in emerging markets, as well as the Japanese yen,” it adds.
India also made its entry into the club of top 15 ultra-high-networth households (more than $100 million in private financial wealth) in 2013. It was ranked 13th with 284 such households. The US (4,754 households), the UK (1,044) and China (983) were the top three.
BCG suggests in its report that high savings rate and GDP growth have fuelled the rise in private wealth in the Asia-Pacific region (excluding Japan), which grew 30.5 per cent to $37 trillion in 2013.
With its private wealth projected to rise at a compound annual growth rate (CAGR) of 10.5 per cent, the region could expand to an estimated $61.0 trillion by the end of 2018. At this pace, the region is expected to overtake Western Europe as the second-wealthiest region in 2014, and North America as the wealthiest in 2018.
Overall, the global private wealth is projected to post CAGR of 5.4 per cent over the next five years to reach an estimated $198.2 trillion by the end of 2018, the report says.
Though the US and Japan are likely to occupy the first and the third spots, China could consolidate its position as the second-wealthiest nation with its private financial wealth increasing to $40 trillion in 2018 from $22 trillion in 2013.
The number of India’s millionaire households, meanwhile, increased to 175,000 in 2013 from 164,000 the previous year. The US topped in this with 7.1 million households, while China was second (2.3 million) and Japan third (1.2 million).
In its report ‘Global Wealth 2014: Riding a Wave of Growth’, BCG has said soaring equity markets and creation of new rapidly developing economies (RDEs) boosted global private financial wealth, which in 2013 grew 14.6 per cent over the previous year to $152 trillion.
Private financial wealth includes cash and deposits, money market funds and listed securities held either directly or indirectly through managed investments or life and pension assets, and other onshore and offshore assets. But, it excludes investors’ own businesses, any real estate, and luxury goods. “In nearly all countries, the growth in private wealth was driven by the strong rebound in equity markets that began in the second half of 2012. The performance was spurred by a relative economic stability in Europe and the US and signs of recovery in some European countries like Ireland, Spain, and Portugal,” the report says.
“Currency developments were more relevant to private wealth growth in 2013 than in 2012. Driven by the slowdown in quantitative easing, the US dollar gained in value against many currencies, particularly those in emerging markets, as well as the Japanese yen,” it adds.
India also made its entry into the club of top 15 ultra-high-networth households (more than $100 million in private financial wealth) in 2013. It was ranked 13th with 284 such households. The US (4,754 households), the UK (1,044) and China (983) were the top three.
BCG suggests in its report that high savings rate and GDP growth have fuelled the rise in private wealth in the Asia-Pacific region (excluding Japan), which grew 30.5 per cent to $37 trillion in 2013.
With its private wealth projected to rise at a compound annual growth rate (CAGR) of 10.5 per cent, the region could expand to an estimated $61.0 trillion by the end of 2018. At this pace, the region is expected to overtake Western Europe as the second-wealthiest region in 2014, and North America as the wealthiest in 2018.
Overall, the global private wealth is projected to post CAGR of 5.4 per cent over the next five years to reach an estimated $198.2 trillion by the end of 2018, the report says.
Monday, June 2, 2014
Honda to sign deal with Gujarat govt for unit
Ahmedabad: While the proposed project in Gujarat of the country's largest car maker, Maruti Suzuki, seems to have hit a minor block as reported, another Japanese automotive company, two-wheeler maker Honda Motorcycle and Scooter India (HMSI), is set to soon sign the State Support Agreement (SSA) with the administration here.
A senior state government official said, "The project proposal will soon be moved to the state cabinet, after which the formal SSA could be signed in around a month. The chief secretary has already approved the company's proposal."
HMSI is learnt to have bought around 200 acres of private land at Vithlapur in the Mandal region of this district at Rs 15-20 lakh an acre to set up its fourth manufacturing unit in the country. The company could not be reached for a comment.
The parent group's passenger car outfit, Honda Cars India Ltd (HCIL), is also scouting for land in the same region. Government sources claim the car-maker requires around 250 acres and is hoping to buy privately.
Senior HMSI officials had visited Gandhinagar last November to finalise details on the SSA. The company intends to invest about Rs 1,000 crore on the Gujarat project. The state government offers certain standard incentives for all projects entailing an investment of at least Rs 1,000 crore, such as value-added-tax refunds and waivers on stamp duty and registration fee.
The two-wheeler maker aims to sell 4.5 million units in FY15, up from the 3.72 mn sold in 2013-14, mainly on the back of two new motorcycles expected to be launched later this year, and its recently launched scooter, the Activa 125.
The company currently has three manufacturing facilities in the country, one at Manesar in Haryana (1.6 mn units annual capacity), another at Tapukara in Rajasthan (1.2 mn units annually) and the third at Narsapura in Karnataka (1.2 mn). HMSI is adding another 600,000 units at the Karnataka plant, taking its capacity to 1.8 mn annually. With this expansion, the cumulative annual production capacity would be around 4.6 mn units.
Vithlapur is only a few kilometres away from the site of Maruti Suzuki's proposed plant, at Hansalpur in the Mandal region. Maruti Suzuki has also bought a land parcel at Vithlapur for future expansion. The area is around 110 km from this city, between Sanand on one side and Mehsana town on the other.
A senior state government official said, "The project proposal will soon be moved to the state cabinet, after which the formal SSA could be signed in around a month. The chief secretary has already approved the company's proposal."
HMSI is learnt to have bought around 200 acres of private land at Vithlapur in the Mandal region of this district at Rs 15-20 lakh an acre to set up its fourth manufacturing unit in the country. The company could not be reached for a comment.
The parent group's passenger car outfit, Honda Cars India Ltd (HCIL), is also scouting for land in the same region. Government sources claim the car-maker requires around 250 acres and is hoping to buy privately.
Senior HMSI officials had visited Gandhinagar last November to finalise details on the SSA. The company intends to invest about Rs 1,000 crore on the Gujarat project. The state government offers certain standard incentives for all projects entailing an investment of at least Rs 1,000 crore, such as value-added-tax refunds and waivers on stamp duty and registration fee.
The two-wheeler maker aims to sell 4.5 million units in FY15, up from the 3.72 mn sold in 2013-14, mainly on the back of two new motorcycles expected to be launched later this year, and its recently launched scooter, the Activa 125.
The company currently has three manufacturing facilities in the country, one at Manesar in Haryana (1.6 mn units annual capacity), another at Tapukara in Rajasthan (1.2 mn units annually) and the third at Narsapura in Karnataka (1.2 mn). HMSI is adding another 600,000 units at the Karnataka plant, taking its capacity to 1.8 mn annually. With this expansion, the cumulative annual production capacity would be around 4.6 mn units.
Vithlapur is only a few kilometres away from the site of Maruti Suzuki's proposed plant, at Hansalpur in the Mandal region. Maruti Suzuki has also bought a land parcel at Vithlapur for future expansion. The area is around 110 km from this city, between Sanand on one side and Mehsana town on the other.
Marine product exports zoom to record $5 b
At a news conferenceLeena Nair, chairperson of the Marine Products Export Development Authority (MPEDA), said the total export earnings were $5.007 billion ( Rs. 30,213 crore.) In rupee terms, the growth was a whopping 60 per cent over the previous year, though in dollar terms this was 42.60 per cent. In the previous year, the earnings were $3,512 million.
In quantity terms, 9,83,756 tonnes were exported, an increase of around 6 per cent. Fish items were the largest chunk in terms of quantity, though when it came to value, frozen shrimp was the biggest money earner. More than three lakh tonnes of shrimp were exported, of which 73 per cent was cultured. There was also a 35 per cent increase in unit value – black tiger shrimp secured the highest value.
Among regions, South-East Asia continued to be the largest buyer of Indian marine products with a share of 26.38 per cent, followed by the US with a share of 25.68 per cent. The European Union is the third largest buyer with 20.24 per cent share, followed by Japan at 8.21 per cent, other countries 8.20 per cent, China 5.85 per cent and West Asia 5.45 per cent.
One reason for the higher exports is increased production of L. Vannamei shrimp, whose exports to the US market jumped to 59.63 per cent. Export of frozen shrimp rose by 7.38 per cent in quantity terms and 28.23 per cent in dollar terms.
Nair said lower exports from Thailand and other prawn-producing countries because of a disease that had afflicted their aquaculture. On the other hand, depreciation of the rupee against the dollar and increased production of vannamei in Andhra Pradesh and other States helped in higher earnings from prawns. The quality of Indian prawns and other marine products had improved remarkably – contributing significantl to the rise in unit price. Participation in major global seafood fairs also had helped.
In quantity terms, 9,83,756 tonnes were exported, an increase of around 6 per cent. Fish items were the largest chunk in terms of quantity, though when it came to value, frozen shrimp was the biggest money earner. More than three lakh tonnes of shrimp were exported, of which 73 per cent was cultured. There was also a 35 per cent increase in unit value – black tiger shrimp secured the highest value.
Among regions, South-East Asia continued to be the largest buyer of Indian marine products with a share of 26.38 per cent, followed by the US with a share of 25.68 per cent. The European Union is the third largest buyer with 20.24 per cent share, followed by Japan at 8.21 per cent, other countries 8.20 per cent, China 5.85 per cent and West Asia 5.45 per cent.
One reason for the higher exports is increased production of L. Vannamei shrimp, whose exports to the US market jumped to 59.63 per cent. Export of frozen shrimp rose by 7.38 per cent in quantity terms and 28.23 per cent in dollar terms.
Nair said lower exports from Thailand and other prawn-producing countries because of a disease that had afflicted their aquaculture. On the other hand, depreciation of the rupee against the dollar and increased production of vannamei in Andhra Pradesh and other States helped in higher earnings from prawns. The quality of Indian prawns and other marine products had improved remarkably – contributing significantl to the rise in unit price. Participation in major global seafood fairs also had helped.
Government readies Rs 10,000 crore VC fund for MSMEs
New Delhi: The government is readying a Rs 10,000 crore venture fund for micro, small and medium enterprises (MSMEs) in a bid bolster the flow of funds to the sector that accounts for 45% of manufacturing activity and 40% of exports.
Sources said that the proposal was discussed with the finance minister Arun Jaitley during a presentation made by the department of financial services on Thursday. They added that the new VC fund aimed to boost startups will be based on priority sector lending by banks and will have a seven-year tenure.
The fund will replace the Rs 5,000 crore India Opportunities Venture Fund (IOVF) that was launched by Sidbi in 2012. The sources said that the fund, with a three-year tenure did not take off prompting the government to plan a new fund.
In fact, even the Reserve Bank of India had certain concerns, which is now prompting the government to underwrite the losses.
Funding to MSMEs has been a major area of concern as entrepreneurs often find it tough to raise equity.
The new fund may be announced in the Budget, scheduled for the first week of July, said sources, since the broad contours have been worked out by the finance ministry. In any case, MSMEs, given the large job potential, is a key focus area of the government.
In fact, even commerce & industry minister Nirmala Sitharaman tweeted on Friday that she has asked her officials to focus on labour-intensive sectors as it is key to job creation in manufacturing.
Sources said that the proposal was discussed with the finance minister Arun Jaitley during a presentation made by the department of financial services on Thursday. They added that the new VC fund aimed to boost startups will be based on priority sector lending by banks and will have a seven-year tenure.
The fund will replace the Rs 5,000 crore India Opportunities Venture Fund (IOVF) that was launched by Sidbi in 2012. The sources said that the fund, with a three-year tenure did not take off prompting the government to plan a new fund.
In fact, even the Reserve Bank of India had certain concerns, which is now prompting the government to underwrite the losses.
Funding to MSMEs has been a major area of concern as entrepreneurs often find it tough to raise equity.
The new fund may be announced in the Budget, scheduled for the first week of July, said sources, since the broad contours have been worked out by the finance ministry. In any case, MSMEs, given the large job potential, is a key focus area of the government.
In fact, even commerce & industry minister Nirmala Sitharaman tweeted on Friday that she has asked her officials to focus on labour-intensive sectors as it is key to job creation in manufacturing.
US, India green councils to focus on knowledge exchange
Hyderabad: The green building councils of India and the US are strengthening their association for the next 10 years to focus on areas of knowledge exchange and work on the green building movement in India.
The licence agreement that Indian Green Building Council (IGBC) and the US Green Building Council (USGBC) signed in 2004 comes ends in June and a new agreement is being signed for the next 10 years to work in the areas of advocacy, knowledge exchange and market transformation. The LEED India projects that are already registered with IGBC will be certified by IGBC till end of 2018. Starting July 1, LEED projects in India will be registered and certified directly by GBCI, the certification institute appointed by USGBC.
Prem C Jain, Chairman, IGBC, said “LEED India rating, which is for commercial buildings, forms about 25 per cent of the total built-up area registered with IGBC, for green building projects in India. Very soon, rating systems for green schools and affordable housing segments will be launched.”
CII Indian Green Building Council (IGBC) has recently crossed the milestone of 2 billion sq. ft built-up area of green building projects registered with the Council. It plans to have 10 billion sq ft by 2022 when India will be 75 years post-independence.
Mahesh Ramanujam, Chief Operating Officer, USGBC and President, GBCI, said “Over the past 10 years, IGBC has been instrumental in mobilising the green building movement in India and helping establish LEED India as a key driver for market transformation.”
The licence agreement that Indian Green Building Council (IGBC) and the US Green Building Council (USGBC) signed in 2004 comes ends in June and a new agreement is being signed for the next 10 years to work in the areas of advocacy, knowledge exchange and market transformation. The LEED India projects that are already registered with IGBC will be certified by IGBC till end of 2018. Starting July 1, LEED projects in India will be registered and certified directly by GBCI, the certification institute appointed by USGBC.
Prem C Jain, Chairman, IGBC, said “LEED India rating, which is for commercial buildings, forms about 25 per cent of the total built-up area registered with IGBC, for green building projects in India. Very soon, rating systems for green schools and affordable housing segments will be launched.”
CII Indian Green Building Council (IGBC) has recently crossed the milestone of 2 billion sq. ft built-up area of green building projects registered with the Council. It plans to have 10 billion sq ft by 2022 when India will be 75 years post-independence.
Mahesh Ramanujam, Chief Operating Officer, USGBC and President, GBCI, said “Over the past 10 years, IGBC has been instrumental in mobilising the green building movement in India and helping establish LEED India as a key driver for market transformation.”
AirAsia India set to take off on June 12
Mumbai/New Delhi: After months of anticipation, AirAsia India is set to take to the skies on June 12, with the Directorate General of Civil Aviation (DGCA) on Thursday approving the airline’s flight schedules.
Sources said DGCA had allowed AirAsia India to fly twice a day on the Chennai-Bangalore-Chennai route and once a day on the Bangalore-Goa-Bangalore route.
According to data available with DGCA, there are 14 daily flights between Chennai and Bangalore and five between Bangalore and Goa, according to the summer schedule for this year.
“As of now, they have only three aircraft. They have secured permission to start commercial operations with three daily flights on the Chennai-Bangalore and Bangalore-Goa routes. The approvals are subject to the airline having a total fleet of five aircraft at the end of the first year of operations,” said a source.
Budget carrier SpiceJet responded promptly to AirAsia’s announcement, offering tickets for as low as Rs 1,499, excluding taxes, on the Chennai-Bangalore and Bangalore-Goa routes. This limited inventory offer is for travel after June 12.
“As part of the ongoing policy of the airline to stimulate the market by offering attractive fares and grow the travel sector, SpiceJet is glad to come out with this special offer on high demand routes such as Goa and Chennai from Bangalore,” said Kaneswaran Avili, chief commercial officer, SpiceJet.
For AirAsia’s domestic services, tickets would be sold from Friday, group chief executive Tony Fernandes tweeted on Thursday. He, however, didn’t disclose the routes on which AirAsia India would commence services.
“Very, very proud to announce AirAsia India open for sale tomorrow. Wow! First flight June 12. See you all in India on the 12th,” Fernandes tweeted.
It was expected the airline would make a formal announcement on its first flight in the evening, but this was postponed. AirAsia India chief executive Mittu Chandilya said he was busy at meetings in New Delhi.
AirAsia remained tight-lipped about plans on its routes. Sources said earlier this week, the airline had told travel agents bookings for the Bangalore-Goa route would open on Friday. Earlier this month, the airline had secured an operating permit from DGCA. The approval, however, was contingent upon the outcome of suits against the airline — Bharatiya Janata Party leader Subramanian Swamy and the Federation of Indian Airlines had moved court against the government’s approval to the airline, saying this violated foreign direct investment norms. The Delhi High Court is set to hear the petition on July 11.
AirAsia is known for its ultra low-cost fares and promotional offers; it offers free and discounted tickets. Earlier this month, Chandilya had said the airline would offer fares at 30-35 per cent discounts compared to rivals. Apart from its own website, the airline will sell tickets through online portals and leading offline agents.
“We will break even in four months. My partners will expect no less of me. We will be disruptive in pricing. My competitor is not other airlines operating in this country. My benchmark is the first class fare offered by the railways. Yes…the kicker for me is low fares. But quality of service, safety standards, reliability and on-time performance are very important hygiene factors,” Chandilya had told Business Standard.
AirAsia India, a joint venture between Malaysian low-cost airline AirAsia, the Tata group and Telesetra Tradeplace, indicated it would start operations from Chennai and connect tier-II and -III cities. Initially, the airline had said it wouldn’t fly to the Delhi and Mumbai airports because of high airport charges, but earlier this month, Fernandes said the airline was considering flights to these two cities, too.
Sources said DGCA had allowed AirAsia India to fly twice a day on the Chennai-Bangalore-Chennai route and once a day on the Bangalore-Goa-Bangalore route.
According to data available with DGCA, there are 14 daily flights between Chennai and Bangalore and five between Bangalore and Goa, according to the summer schedule for this year.
“As of now, they have only three aircraft. They have secured permission to start commercial operations with three daily flights on the Chennai-Bangalore and Bangalore-Goa routes. The approvals are subject to the airline having a total fleet of five aircraft at the end of the first year of operations,” said a source.
Budget carrier SpiceJet responded promptly to AirAsia’s announcement, offering tickets for as low as Rs 1,499, excluding taxes, on the Chennai-Bangalore and Bangalore-Goa routes. This limited inventory offer is for travel after June 12.
“As part of the ongoing policy of the airline to stimulate the market by offering attractive fares and grow the travel sector, SpiceJet is glad to come out with this special offer on high demand routes such as Goa and Chennai from Bangalore,” said Kaneswaran Avili, chief commercial officer, SpiceJet.
For AirAsia’s domestic services, tickets would be sold from Friday, group chief executive Tony Fernandes tweeted on Thursday. He, however, didn’t disclose the routes on which AirAsia India would commence services.
“Very, very proud to announce AirAsia India open for sale tomorrow. Wow! First flight June 12. See you all in India on the 12th,” Fernandes tweeted.
It was expected the airline would make a formal announcement on its first flight in the evening, but this was postponed. AirAsia India chief executive Mittu Chandilya said he was busy at meetings in New Delhi.
AirAsia remained tight-lipped about plans on its routes. Sources said earlier this week, the airline had told travel agents bookings for the Bangalore-Goa route would open on Friday. Earlier this month, the airline had secured an operating permit from DGCA. The approval, however, was contingent upon the outcome of suits against the airline — Bharatiya Janata Party leader Subramanian Swamy and the Federation of Indian Airlines had moved court against the government’s approval to the airline, saying this violated foreign direct investment norms. The Delhi High Court is set to hear the petition on July 11.
AirAsia is known for its ultra low-cost fares and promotional offers; it offers free and discounted tickets. Earlier this month, Chandilya had said the airline would offer fares at 30-35 per cent discounts compared to rivals. Apart from its own website, the airline will sell tickets through online portals and leading offline agents.
“We will break even in four months. My partners will expect no less of me. We will be disruptive in pricing. My competitor is not other airlines operating in this country. My benchmark is the first class fare offered by the railways. Yes…the kicker for me is low fares. But quality of service, safety standards, reliability and on-time performance are very important hygiene factors,” Chandilya had told Business Standard.
AirAsia India, a joint venture between Malaysian low-cost airline AirAsia, the Tata group and Telesetra Tradeplace, indicated it would start operations from Chennai and connect tier-II and -III cities. Initially, the airline had said it wouldn’t fly to the Delhi and Mumbai airports because of high airport charges, but earlier this month, Fernandes said the airline was considering flights to these two cities, too.
Subscribe to:
Posts (Atom)