Ahmedabad: From November, farmers here will be able to check stocks and buy or sell produce to those in Unjha at the click of a button, with Gujarat putting in place an electronic market platform for its Agricultural Produce Market Committees (APMCs), under the National Agriculture Market (NAM) initiative.
Initially, 26 of the 210 APMCs will be connected to the e-market platform. These include the APMCs in Ahmedabad, Rajkot, Bhavnagar, Himmatnagar, Unjha, Surat, Dahod and Gondal.
“The total project cost is about Rs 21 crore. To secure financial assistance, we have given a proposal to the central government,” said Mona Khandhar, secretary of the agriculture and cooperation department, Gujarat.
The state government plans to develop two types of markets under the e-market platform — a real-time market and a virtual one. “The local real-time market will see trading of smaller lots by local traders on the e-platform wherein traders will have some time to study before bidding. The virtual market will allow traders with valid licences from anywhere to trade in larger lots. During trading, laboratory results can also be shared on the lots,” Khandhar said.
Currently, traders can participate only in a single APMC for physical trading, though they can participate in multiple markets with a single licence in the in e-market. Under the current e-market model, trading can also be carried out with other states, through a prior agreement.
Mohanbhai Kundariya, Union minister of state for agriculture, said, “Our aim is to put all APMCs under one platform so that farmers can get better prices for their products. The Union government will provide all kinds of financial support to develop an e-market platform.”
The Gujarat government aims to bring at least 100 APMCs under the e-market platform by the end of March 2016. For this, the central government has allotted Rs 200 crore.
The 26 APMCs to be connected to the e-market platform initially will have modern grading and packaging facilities. The state government also plans to set up a laboratory for quality checks.
“We have issued a tender to identify a commodity exchange to be our partner for the e-market platform. We are studying numbers of such markets,” Khandhar said.
The state government plans to conduct a seminar for farmers, traders and APMC officials to explain to them the concept of an e-market.
The NAM model has been adopted from Karnataka, which has had an e-market since the past couple of years. Gujarat, however, might be the first state to implement the project directly under NAM.
The Gujarat government is planning to set up 100 warehouses for agricultural produce, for which Rs 5 crore has already been allotted. “The state government has decided to give priority to e-market-linked APMCs to set up warehouses in the next year,” said J G Pandya, director of the Gujarat State Agricultural Marketing Board.
Success in my Habit
Wednesday, September 16, 2015
Amendments to model concession agreement a big boost for highways sector: Crisil
Mumbai: India’s national highways sector received a big regulatory boost with the ministry of roads and highways clearing amendments to the model concession agreement (MCA) for awarding projects on a build-operate-transfer (BOT) basis, rating agency Crisil Ltd said in a report on Tuesday.
Under the MCA amendments, which were cleared last week, payment of premium starts only from the fourth year of completion of a project, compared with the first year previously. This is a major relief for both developers and lenders, said Crisil.
The amendment also allows termination of projects that do not progress even after a year of award. Almost half the projects awarded between 2011 and 2013 had to be terminated because of delays in land acquisition and other clearances. The termination process itself was complex and painful, taking more than two years in half the instances, said the report.
In BOT projects, a private developer builds the project with its own funds, operates it for a period and then transfers it to the government.
In August, the government approved a conditional bailout package to help so-called BOT road developers exit highway projects two years after completion of such projects, irrespective of the year when the project was awarded. The proceeds can be used to retire corporate debt or for investment in other road projects, said the Cabinet Committee on Economic Affairs.
Last month, the National Highways Authority of India (NHAI) also removed a clause which required companies to invest the money received from monetization of their operational assets. The body also offered to fund projects that are stuck in advanced stages of completion. The government is also working towards being better prepared with clearances before putting up projects for bidding.
These changes will improve the confidence of both developers and lenders in the sector, said the report.
“Lender confidence, which was severely damaged in the last few years, will revive with the change in the clause related to premium payment, and introduction of the clause on deemed termination. Further, doubling the cap on equity contribution by NHAI will make more projects viable at a time when a majority of BOT projects being awarded are on a grant basis,” said Crisil Research director Ajay Srinivasan.
Project awards by NHAI could increase nearly 50% in the current financial year with the share of BOT projects rising to 50% by 2017 from 25% a year earlier, Crisil said.
Under the MCA amendments, which were cleared last week, payment of premium starts only from the fourth year of completion of a project, compared with the first year previously. This is a major relief for both developers and lenders, said Crisil.
The amendment also allows termination of projects that do not progress even after a year of award. Almost half the projects awarded between 2011 and 2013 had to be terminated because of delays in land acquisition and other clearances. The termination process itself was complex and painful, taking more than two years in half the instances, said the report.
In BOT projects, a private developer builds the project with its own funds, operates it for a period and then transfers it to the government.
In August, the government approved a conditional bailout package to help so-called BOT road developers exit highway projects two years after completion of such projects, irrespective of the year when the project was awarded. The proceeds can be used to retire corporate debt or for investment in other road projects, said the Cabinet Committee on Economic Affairs.
Last month, the National Highways Authority of India (NHAI) also removed a clause which required companies to invest the money received from monetization of their operational assets. The body also offered to fund projects that are stuck in advanced stages of completion. The government is also working towards being better prepared with clearances before putting up projects for bidding.
These changes will improve the confidence of both developers and lenders in the sector, said the report.
“Lender confidence, which was severely damaged in the last few years, will revive with the change in the clause related to premium payment, and introduction of the clause on deemed termination. Further, doubling the cap on equity contribution by NHAI will make more projects viable at a time when a majority of BOT projects being awarded are on a grant basis,” said Crisil Research director Ajay Srinivasan.
Project awards by NHAI could increase nearly 50% in the current financial year with the share of BOT projects rising to 50% by 2017 from 25% a year earlier, Crisil said.
Monday, September 14, 2015
Practo acquires Insta Health for $12 million
ew Delhi: India’s largest online doctor discovery company Practo Technologies Pvt. Ltd has acquired hospital information management solution provider Insta Health Solutions for $12 million, its third acquisition after fitness solutions firm FitHo and product outsourcing firm Genii in the past six months.
The acquisition opens up an additional revenue stream for Practo and helps the company expand its presence among hospitals. The company at present generates revenue from Practo Ray, a doctor-facing practice management software sold as a subscription-based, software-as-a-service product, and Practo Reach, a sponsored listing service for hospitals and clinics. Listing on Practo is free for doctors, while the company does not charge consumers for searches.
With Insta Health Solutions on board, Practo now gets access to more than 500 hospitals across 15 countries, including in Southeast Asia, West Asia and Africa, which use the company’s information management software. This adds on to Practo’s repertoire of software products for medical establishments, which ensures a steady revenue flow.
Insta Health Solutions will continue to operate as a separate entity, Practo said in a statement.
“Ray as a product is targeted towards individual practitioners while Insta targets hospitals and chains of clinics, which are larger in nature. Both the products have different focus and target audience,” said Shashank N.D., co-founder and chief executive at Practo. “Before Insta, we had Reach, which was targeted at hospitals. With this acquisition, we will also have influence over the software that the hospitals use.”
Practo claims to facilitate 10 million searches every month. There are more than 200,000 doctors, 5,000 diagnostic centres and 10,000 hospitals listed on its platform.
Insta Health Solutions was founded seven years ago by Ramesh Emani, an information technology veteran who had worked with Wipro Ltd in various capacities, including as chief technology officer and president of telecom and product engineering solutions.
The firm’s products enable clients to automate clinical, operational and financial processes, including scheduling, registration, patient management, billing, electronic medical records management, bed and pharmacy inventory management among others.
The acquisition comes amid Practo’s increasing focus on enterprises such as hospitals, clinics and diagnostics centres. The firm’s acquisition of Genii was aimed at strengthening its technology to roll out new products for enterprises, while FitHo was aimed at making an entry into the preventive healthcare segment by the end of the year.
Though Practo has the first-mover advantage in India, there are at least 140 start-ups in the doctor discovery, appointment booking and practice management service segment, according to Tracxn, a start-up tracker. Some of the businesses in this segment are Lybrate, Ziffi, Qikwell and HelpingDoc.
To maintain its market dominance, Practo is making acquisitions and launching several products in new businesses. It is also fast expanding in international markets and plans to expand to 10 countries, including Brazil, Turkey, Mexico and Malaysia, by the end of the fiscal year, from four currently.
The company has raised about $125 million since its launch in 2008, the last being a $90-million round in August from China’s Tencent, Belgian venture capital firm Sofina, Sequoia Capital Global Equities, Google Capital, Altimeter Capital and Yuri Milner, founder of Russian venture capital firm DST Global.
The acquisition opens up an additional revenue stream for Practo and helps the company expand its presence among hospitals. The company at present generates revenue from Practo Ray, a doctor-facing practice management software sold as a subscription-based, software-as-a-service product, and Practo Reach, a sponsored listing service for hospitals and clinics. Listing on Practo is free for doctors, while the company does not charge consumers for searches.
With Insta Health Solutions on board, Practo now gets access to more than 500 hospitals across 15 countries, including in Southeast Asia, West Asia and Africa, which use the company’s information management software. This adds on to Practo’s repertoire of software products for medical establishments, which ensures a steady revenue flow.
Insta Health Solutions will continue to operate as a separate entity, Practo said in a statement.
“Ray as a product is targeted towards individual practitioners while Insta targets hospitals and chains of clinics, which are larger in nature. Both the products have different focus and target audience,” said Shashank N.D., co-founder and chief executive at Practo. “Before Insta, we had Reach, which was targeted at hospitals. With this acquisition, we will also have influence over the software that the hospitals use.”
Practo claims to facilitate 10 million searches every month. There are more than 200,000 doctors, 5,000 diagnostic centres and 10,000 hospitals listed on its platform.
Insta Health Solutions was founded seven years ago by Ramesh Emani, an information technology veteran who had worked with Wipro Ltd in various capacities, including as chief technology officer and president of telecom and product engineering solutions.
The firm’s products enable clients to automate clinical, operational and financial processes, including scheduling, registration, patient management, billing, electronic medical records management, bed and pharmacy inventory management among others.
The acquisition comes amid Practo’s increasing focus on enterprises such as hospitals, clinics and diagnostics centres. The firm’s acquisition of Genii was aimed at strengthening its technology to roll out new products for enterprises, while FitHo was aimed at making an entry into the preventive healthcare segment by the end of the year.
Though Practo has the first-mover advantage in India, there are at least 140 start-ups in the doctor discovery, appointment booking and practice management service segment, according to Tracxn, a start-up tracker. Some of the businesses in this segment are Lybrate, Ziffi, Qikwell and HelpingDoc.
To maintain its market dominance, Practo is making acquisitions and launching several products in new businesses. It is also fast expanding in international markets and plans to expand to 10 countries, including Brazil, Turkey, Mexico and Malaysia, by the end of the fiscal year, from four currently.
The company has raised about $125 million since its launch in 2008, the last being a $90-million round in August from China’s Tencent, Belgian venture capital firm Sofina, Sequoia Capital Global Equities, Google Capital, Altimeter Capital and Yuri Milner, founder of Russian venture capital firm DST Global.
Air bag makers eye $2 billion opportunity in India
New Delhi: The world’s largest air bag suppliers like Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and increasing capacity in India as it provides a US$ 2 billion opportunity due to tougher rules aimed at improving India's road safety. The planned changes will create an opportunity for makers of safety equipment, as cars without air bags will achieve only the lowest safety ratings after tests. By 2020, overall revenues from airbag sales in India are set to rise 11 per cent a year to hit US$ 2 billion, outpacing the 9 per cent growth expected in China, according to data from Transparency Market Research. By then, India is expected to be selling over 5 million cars a year. This is a the right time to invest to grow the business,” said Harish Lakshman, managing director of air bag maker Rane TRW Steering Systems Ltd. The company opened a new air bag assembly plant in August in southern India with capacity to make 500,000 units a year, investing Rs 18 crore (US$ 2.7 million). Toyoda Goesi Minda India, a joint venture between the Japanese company and India’s Uno Minda plans to increase its capacity by up to six times to 150,000 air bags over the next two to three years. “We expect that within five years the large airbag makers will have a manufacturing hub in India,” said Ayay Bandopadhyay, automotive research analyst at Transparency Market Research.
UP receives investment intentions of Rs 32,963 cr at Mumbai conclave
Mumbai: Uttar Pradesh Chief Minister Akhilesh Yadav said the government received investment intentions worth Rs 32,963 crore from investors in Maharashtra.
The proposed investments are in the field of information technology and IteS (IT enabled services), electronics, food & agro processing, manufacturing, infrastructure, power, consumer goods and fertiliser. Yadav, after addressing investors summit, told reporters that his government has already released investor-friendly policies in the fields of industry, IT, agriculture and couple of other sectors.
“Today the government has received investment intentions from Reliance Jio, LG, ITC, Idea Cellular, Godrej Agrovet, Toshiba Power, Kanodia Group, Indo Gulf Fertilizer and Ecoreco,” he said.
The sector-wise investment intentions include infrastructure (Rs 13,405 crore), food and agro processing (Rs 6,630 crore), manufacturing (Rs 6,150 crore), power (Rs 3,400 crore), electronics (Rs 1,578 crore), biomass (Rs 1,000 crore), solar energy (Rs 700 crore) and IT (Rs 100 crore).
Further, Akhilesh said the government is currently involved in increasing the Metro network across the state on a fast-track basis. Besides, the state will focus on development of 13 cities which figured on the recent list of Smart Cities released by the Centre.
The proposed investments are in the field of information technology and IteS (IT enabled services), electronics, food & agro processing, manufacturing, infrastructure, power, consumer goods and fertiliser. Yadav, after addressing investors summit, told reporters that his government has already released investor-friendly policies in the fields of industry, IT, agriculture and couple of other sectors.
“Today the government has received investment intentions from Reliance Jio, LG, ITC, Idea Cellular, Godrej Agrovet, Toshiba Power, Kanodia Group, Indo Gulf Fertilizer and Ecoreco,” he said.
The sector-wise investment intentions include infrastructure (Rs 13,405 crore), food and agro processing (Rs 6,630 crore), manufacturing (Rs 6,150 crore), power (Rs 3,400 crore), electronics (Rs 1,578 crore), biomass (Rs 1,000 crore), solar energy (Rs 700 crore) and IT (Rs 100 crore).
Further, Akhilesh said the government is currently involved in increasing the Metro network across the state on a fast-track basis. Besides, the state will focus on development of 13 cities which figured on the recent list of Smart Cities released by the Centre.
Gujarat firms lead India's most attractive brand list
Ahmedabad: Gujarat's industry has reason to cheer as as many as eight Gujarat-based brands have made it to the India's Most Attractive Brands list of 2015 as category leaders in attractiveness.
Amul (owned by the Gujarat Cooperative Milk Marketing Federation) has been listed as India's most attractive dairy-diversified (F&B) brand and Amul Butter is the only reigning brand in the butter sub-category. Other Gujarat brands that featured on the list this year include Sintex, Ajanta, Symphony, Fortune Foods Products from Adani Wilmar, Vadilal and Rasna.
India's Most Attractive Brands 2015 Report is based on primary research based on the proprietary 36 traits of attractiveness. A Comniscient Group ccompany TRA (formerly Trust Research Advisory) that conducts primary research with consumers and other stakeholders to give brands insights on solutions to consumer behavior is the publisher of The Brand Trust Report, India's Most Attractive Brands Amul, however, has dropped 45 ranks from last year and became India's 63rd Most Attractive Brand this year.
N. Chandramouli, chief executive officer, TRA, said, "Gujarat has a deep and long tradition of business. Having eight Gujarat brands as category leaders in attractiveness shows how these brands have now begun to pervade the national consciousness. Gujarat is a place that everyone looks up to, not just for governance or quality of life, but also for the quality of brands that emerge from here. The brands from the state too are in a high point of the evolutionary cycle in terms of perception."
Sintex (all-India 355th rank) leads as India's Most Attractive Brand in the Manufacturing-Diversified Category followed by Finolex (All-India 924th rank). Ajanta is a forerunner in the Home Care Category and correspondingly is the lone leader in the Clocks Sub-category.Yet another brand from the region, Symphony (All-India 643rd rank) has been ranked as the Most Attractive Brand in the Coolers Sub-category of the Durable list.Gujarat's love for food is reflected in the number of brands in the F&B Category. This has subsequently boosted the ratings of the category and has made it the largest in Gujarat. Fortune Food Products from Adani Wilmar ranks 316th in its All India Rankings and is the sole leader in the F&B- Diversified Category. Vadilal (All-India 213th rank) ice cream is India's Most Attractive ice cream brand and is followed by Kwallity Walls, Havmor and Cornetto among others. Rasna (All-India 369th rank) is the ruling brand in the Powdered Drink Category and is followed by Glucon D and Tang.
This year's study involved 15,000 hours of fieldwork covering 2312 consumer-influencers across 16 cities in India and generated 5 million data-points and 17,000 unique brands from which the top 1000 brands have been listed in this year's report.
Amul (owned by the Gujarat Cooperative Milk Marketing Federation) has been listed as India's most attractive dairy-diversified (F&B) brand and Amul Butter is the only reigning brand in the butter sub-category. Other Gujarat brands that featured on the list this year include Sintex, Ajanta, Symphony, Fortune Foods Products from Adani Wilmar, Vadilal and Rasna.
India's Most Attractive Brands 2015 Report is based on primary research based on the proprietary 36 traits of attractiveness. A Comniscient Group ccompany TRA (formerly Trust Research Advisory) that conducts primary research with consumers and other stakeholders to give brands insights on solutions to consumer behavior is the publisher of The Brand Trust Report, India's Most Attractive Brands Amul, however, has dropped 45 ranks from last year and became India's 63rd Most Attractive Brand this year.
N. Chandramouli, chief executive officer, TRA, said, "Gujarat has a deep and long tradition of business. Having eight Gujarat brands as category leaders in attractiveness shows how these brands have now begun to pervade the national consciousness. Gujarat is a place that everyone looks up to, not just for governance or quality of life, but also for the quality of brands that emerge from here. The brands from the state too are in a high point of the evolutionary cycle in terms of perception."
Sintex (all-India 355th rank) leads as India's Most Attractive Brand in the Manufacturing-Diversified Category followed by Finolex (All-India 924th rank). Ajanta is a forerunner in the Home Care Category and correspondingly is the lone leader in the Clocks Sub-category.Yet another brand from the region, Symphony (All-India 643rd rank) has been ranked as the Most Attractive Brand in the Coolers Sub-category of the Durable list.Gujarat's love for food is reflected in the number of brands in the F&B Category. This has subsequently boosted the ratings of the category and has made it the largest in Gujarat. Fortune Food Products from Adani Wilmar ranks 316th in its All India Rankings and is the sole leader in the F&B- Diversified Category. Vadilal (All-India 213th rank) ice cream is India's Most Attractive ice cream brand and is followed by Kwallity Walls, Havmor and Cornetto among others. Rasna (All-India 369th rank) is the ruling brand in the Powdered Drink Category and is followed by Glucon D and Tang.
This year's study involved 15,000 hours of fieldwork covering 2312 consumer-influencers across 16 cities in India and generated 5 million data-points and 17,000 unique brands from which the top 1000 brands have been listed in this year's report.
PM Narendra Modi's PMJDY makes India #1 in commitment to financial inclusion: Brookings
New Delhi: Prime Minister Narendra Modi's push for financial inclusion has enabled India to earn the no. 1 rank in commitment to financial inclusion in the latest Brookings Institution's 2015 Financial and Digital Inclusion Project (FDIP) Report and Scorecard.
The report that aims at evaluating the access to and usage of affordable financial services by underserved people across 21 countries gave India ninth rank overall. The scorecard is prepared upon examining individual countries on four key parameters: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services.
According to the report, India accounts for 21 per cent of world's and 67 per cent of South Asia's unbanked population. "Current guidelines, such as those for payment banks, and the overall JAM framework (Jan Dhan-Yojana, Aadhaar and Mobile numbers) are expected to facilitate a more enabling environment for digital financial services by allowing a multiplicity of providers to offer innovative financial services to underserved populations," the report states. It notes the importance of recent government initiatives in helping India enhance its access to formal banking services by the underserved population, remarkably. It goes on to commend the prime minister's Pradhan Mantri Jan-Dhan Yojana -- one of the biggest financial inclusion initiatives in the world -- for helping the country make huge strides in financial inclusion and financial literacy.
The initiative launched on August 28th, 2014 has already facilitated the opening of 185 million bank accounts as of September 2015. The report credited the government for its JAM (Jan-Dhan, Aadhar and Mobile) framework which seeks to allow government to transfer benefits and subsidies directly to the bank accounts of entitled households. "Further digitization of government payments could benefit both the government and recipients alike, as some sources project the government could save over $22 billion a year by paying subsidies for services like health care and education directly to the beneficiaries," the report states.
It goes on to acknowledge the various steps taken at regulatory levels to enhance the accessibility of Indians to mobile money and, further financial inclusion. India received a respectable seventh ranking on the regulatory environment component of the FDIP scorecard. The Reserve Bank of India's recent steps such as notification of guidelines for payment bank services in November 2014 and more recently, the provision of payment bank licenses to 11 applicants, including five mobile operators are seen by the report to be major steps towards making Indian financial services sector more open and inclusive, especially, for the underserved population of the country. Although, the report has commended the advances made in the regulatory environment of the country's financial system, it does suggest that there is room for improvement.
"Strong digital payments infrastructure, development of policies and regulations promoting digital financial services in India, and government's commitment to financial inclusion should allow India to better take advantage of its technological capacity and mobile penetration rates in order to increase financial inclusion in the country," the report said.
The report that aims at evaluating the access to and usage of affordable financial services by underserved people across 21 countries gave India ninth rank overall. The scorecard is prepared upon examining individual countries on four key parameters: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services.
According to the report, India accounts for 21 per cent of world's and 67 per cent of South Asia's unbanked population. "Current guidelines, such as those for payment banks, and the overall JAM framework (Jan Dhan-Yojana, Aadhaar and Mobile numbers) are expected to facilitate a more enabling environment for digital financial services by allowing a multiplicity of providers to offer innovative financial services to underserved populations," the report states. It notes the importance of recent government initiatives in helping India enhance its access to formal banking services by the underserved population, remarkably. It goes on to commend the prime minister's Pradhan Mantri Jan-Dhan Yojana -- one of the biggest financial inclusion initiatives in the world -- for helping the country make huge strides in financial inclusion and financial literacy.
The initiative launched on August 28th, 2014 has already facilitated the opening of 185 million bank accounts as of September 2015. The report credited the government for its JAM (Jan-Dhan, Aadhar and Mobile) framework which seeks to allow government to transfer benefits and subsidies directly to the bank accounts of entitled households. "Further digitization of government payments could benefit both the government and recipients alike, as some sources project the government could save over $22 billion a year by paying subsidies for services like health care and education directly to the beneficiaries," the report states.
It goes on to acknowledge the various steps taken at regulatory levels to enhance the accessibility of Indians to mobile money and, further financial inclusion. India received a respectable seventh ranking on the regulatory environment component of the FDIP scorecard. The Reserve Bank of India's recent steps such as notification of guidelines for payment bank services in November 2014 and more recently, the provision of payment bank licenses to 11 applicants, including five mobile operators are seen by the report to be major steps towards making Indian financial services sector more open and inclusive, especially, for the underserved population of the country. Although, the report has commended the advances made in the regulatory environment of the country's financial system, it does suggest that there is room for improvement.
"Strong digital payments infrastructure, development of policies and regulations promoting digital financial services in India, and government's commitment to financial inclusion should allow India to better take advantage of its technological capacity and mobile penetration rates in order to increase financial inclusion in the country," the report said.
Wednesday, September 9, 2015
GSK begins work on greenfield pharma plant in Karnataka
Hyderabad: Glaxosmithkline Pharmaceuticals Ltd, the Indian unit of UK-based Glaxosmithkline Plc (GSK), on Tuesday said it has started work on its largest greenfield tablet manufacturing facility in Vemgal in Kolar district, Karnataka, with an estimated investment of Rs.1,000 crore.
The facility, coming up on a 50-acre site, will make more than 8 billion tablets and 1 billion capsules a year in the areas of gastroenterology and anti-inflammatory medicine. It will be fully operational in 2017, employing about 250 people.
This new facility is part of GSK’s strategic plan to rationalize, streamline and reduce costs in the supply network, while increasing capacity to meet the growing demands for important medicines, GSK said in its annual report.
It includes a warehouse, site infrastructure, employee welfare centre and utilities to support the manufacturing and packing of the medicines.
GSK said it chose Vemgal for reasons including availability of skilled staff, proximity to southern distribution hub, moderate climate, easy accessibility, availability of state based investment incentives and government land.
“We fully support the government in their efforts to increase access to affordable medicines to improve healthcare and we are very excited to begin work on what will become our largest manufacturing facility in India,” said Annaswamy Vaidheesh, managing director, GlaxoSmithKline Pharmaceuticals.
GSK which markets popular brands like Zinetac, Calpol, Neosporin, Betnesol, Zyloric, Zentel, and Cetzine in India, reported a a turnover of Rs.2,653 crore for the year ended 31 March and a market share of 3.48%.
The facility, coming up on a 50-acre site, will make more than 8 billion tablets and 1 billion capsules a year in the areas of gastroenterology and anti-inflammatory medicine. It will be fully operational in 2017, employing about 250 people.
This new facility is part of GSK’s strategic plan to rationalize, streamline and reduce costs in the supply network, while increasing capacity to meet the growing demands for important medicines, GSK said in its annual report.
It includes a warehouse, site infrastructure, employee welfare centre and utilities to support the manufacturing and packing of the medicines.
GSK said it chose Vemgal for reasons including availability of skilled staff, proximity to southern distribution hub, moderate climate, easy accessibility, availability of state based investment incentives and government land.
“We fully support the government in their efforts to increase access to affordable medicines to improve healthcare and we are very excited to begin work on what will become our largest manufacturing facility in India,” said Annaswamy Vaidheesh, managing director, GlaxoSmithKline Pharmaceuticals.
GSK which markets popular brands like Zinetac, Calpol, Neosporin, Betnesol, Zyloric, Zentel, and Cetzine in India, reported a a turnover of Rs.2,653 crore for the year ended 31 March and a market share of 3.48%.
GE takes IISc's biomass tech to US
Bengaluru: A home-grown technology to generate electricity using biomass designed by the Indian Institute of Science (IISc) is being taken to the US by General Electric.
GE, which had licensed the biomass gasifier technology that generates electricity from agro-waste and wood from IISc, will help Phoenix Energy set up power plants in California. GE demonstrated a model at its Tech event in Bengaluru over the weekend. “Technology transfers typically happen from the North to the South. In gasifier technology, it flows from the South to the North,” said S Dasappa, professor, Centre for Sustainable Technologies, IISc.
“GE officials had scouted across the globe and found this platform – power generation from biomass at IISc. The technology available with us is the best in the world.” While the indigenous gasifier technology gets a US presence, and has installations in countries such as Zambia, the uptake in India is still very slow.
Bioresidue Energy Technology, a Bengaluru-based licencee, has seen one of its projects in Mangaluru shut and another 1.2 mega watt (Mw) power plant generating below capacity in Gadag with revenue from electricity distribution companies not matching up with the cost.
In Karnataka, it costs Rs 6 to generate one unit of electricity, while the power generator is compensated with Rs 6.40 per unit.
“It is uneconomical to run these plants at this cost,” said Amar Kumar, founder of BETP.
India has a vast amount of biomass waste – wood chips from trees such as eucalyptus, coconut shell, sawdust, sugar cane trash and coffee husk - that can be converted into energy. The scientists at IISc estimate India can generate 15,000 Mw of electricity using agro and crop waste of 120-140 million tonnes using a distributed model of having 1-6 Mw power plants across the country.
“There is little parity with biomass and solar and other renewable energies. If it happens – this can provide grid quality 24/7 power giving direct and indirect employment,” said Dasappa. “We are looking at a level-playing field.”
Karnataka offers as much as Rs 12 a unit of power generated by solar, but pays less to biomass-based gasifier projects.
GE, which had licensed the biomass gasifier technology that generates electricity from agro-waste and wood from IISc, will help Phoenix Energy set up power plants in California. GE demonstrated a model at its Tech event in Bengaluru over the weekend. “Technology transfers typically happen from the North to the South. In gasifier technology, it flows from the South to the North,” said S Dasappa, professor, Centre for Sustainable Technologies, IISc.
“GE officials had scouted across the globe and found this platform – power generation from biomass at IISc. The technology available with us is the best in the world.” While the indigenous gasifier technology gets a US presence, and has installations in countries such as Zambia, the uptake in India is still very slow.
Bioresidue Energy Technology, a Bengaluru-based licencee, has seen one of its projects in Mangaluru shut and another 1.2 mega watt (Mw) power plant generating below capacity in Gadag with revenue from electricity distribution companies not matching up with the cost.
In Karnataka, it costs Rs 6 to generate one unit of electricity, while the power generator is compensated with Rs 6.40 per unit.
“It is uneconomical to run these plants at this cost,” said Amar Kumar, founder of BETP.
India has a vast amount of biomass waste – wood chips from trees such as eucalyptus, coconut shell, sawdust, sugar cane trash and coffee husk - that can be converted into energy. The scientists at IISc estimate India can generate 15,000 Mw of electricity using agro and crop waste of 120-140 million tonnes using a distributed model of having 1-6 Mw power plants across the country.
“There is little parity with biomass and solar and other renewable energies. If it happens – this can provide grid quality 24/7 power giving direct and indirect employment,” said Dasappa. “We are looking at a level-playing field.”
Karnataka offers as much as Rs 12 a unit of power generated by solar, but pays less to biomass-based gasifier projects.
PM Narendra Modi's Swachh Bharat Abhiyan doubles toilet cleaner sales
Mumbai: Consumer product sales may be going down the toilet but toilet cleaner sales growth has more than doubled since the launch of PM Modi's pet project Swachh Bharat, latest IMRB consumption data shows.
The toilet cleaners segment, which was growing at 3-6% in the past few years, has seen a sudden surge of 10-12% growth in quarterly sales since October last year when the sanitation programme was launched.
"Very clearly, we are seeing an upward trend in toilet and bathroom cleaner purchases after October, '14. Interestingly, the growth is driven by rural markets," said Manoj Menon, group business director at IMRB Kantar Worldpanel which studies consumption patterns through volume sales. Rural markets, where most of the nearly one crore commodes were installed, saw a 30-60% growth in the past three quarters between October and June, a phenomenal jump given that the segment was declining a year ago.
The data also revealed that nearly 60 lakh households used toilet cleaners during the recent June quarter compared with 42 lakh a year ago in the hinterland.
"The construction of household toilets is resulting in a growing awareness about sanitation and hygiene, and people in rural India are buying quality sanitation products for their households," said KK Chutani, Executive Director-Consumer Care Business at Dabur India that sells Sanifresh toilet cleaners. "This growing awareness about sanitation and cleanliness is helping drive demand for branded toilet cleaners." Homegrown Dabur rolled out a 'Swachh Toilet, Swachh Bharat Abhiyan', which will provide germ-free public toilets across the country.
Potty training
From scaring consumers about the dangers lurking beneath their bottoms to spreading awareness on better hygiene practices, marketers of bathroom sanitation products such as Reckitt Benckiser, Hindustan Unilever and Dabur are doing their bit too.
For instance, HUL through its Domex Toilet Academy, made toilets accessible and affordable, while promoting the benefits of clean toilets and good hygiene. "We aim to provide innovative solutions and create self-sustaining delivery models which generate both public health benefits and business growth while simultaneously enhancing livelihoods by enabling local ownership and entrepreneurship," said an HUL spokesperson.
Reckitt Benckiser, that sells market leader brand Harpic, has roped in Amitabh Bachchan as ambassador to cover villages in nearly a dozen states, pledging Rs100 crore for its cleanliness drive.
"Projects like these do translate into consumers buying more hygiene products but the big impact will be in the long term. Our immediate priority is to change consumer behaviour," Reckitt Benckiser regional director, South Asia, Nitish Kapoor, had told ET last month.
Pricing strategy
Not everyone grabbed the cleaners just because of a higher awareness initiative. Pricing strategy by companies helped too as both Reckitt and Dabur launched smaller packs of 200-ml at an affordable Rs 24-30, especially for rural markets to generate more trials and usage. This, in contrast, to their products that are sold at an average Rs 50-70 for a half litre pack and over Rs100 for a litre pack of toilet cleaners in urban markets.
Experts feel that many consumers, who traditionally used products such as acid, bleach and detergents, could have shifted to branded products as reach for such products is just 10%. "Consumer awareness for sanitation and hygiene need in rural and semi-urban areas has gone up where more consumers not just bought cleaners but also upgraded within category to using products designed for germ removal. With overall penetration for the category still low, such a start could have forced many more consumers reaching out for cleaning and hygiene products in time to come," said Devendra Chawla, president - food and FMCG at Future Group, which runs Food Bazaar, India's largest food supermarket.
The World Health Organization and the United Nations Children's Education Fund ( UNICEF) estimate that there are more than 620 million people engaged in open defecation due to lack of access to proper sanitation and 60% of all open defecation is in India.
The government claims to have constructed around 80 lakh countryside toilets across India under Modi's Swachh Bharat mission, which aims to make India "open defecation-free" by 2019 by building 12 crore toilets in rural India at a projected cost of Rs 1.96 lakh crore. PM Modi has already called for corporate entities and private sector to bring in their resources and expertise in managing large-scale projects, while maximizing impact and efficiency.
The toilet cleaners segment, which was growing at 3-6% in the past few years, has seen a sudden surge of 10-12% growth in quarterly sales since October last year when the sanitation programme was launched.
"Very clearly, we are seeing an upward trend in toilet and bathroom cleaner purchases after October, '14. Interestingly, the growth is driven by rural markets," said Manoj Menon, group business director at IMRB Kantar Worldpanel which studies consumption patterns through volume sales. Rural markets, where most of the nearly one crore commodes were installed, saw a 30-60% growth in the past three quarters between October and June, a phenomenal jump given that the segment was declining a year ago.
The data also revealed that nearly 60 lakh households used toilet cleaners during the recent June quarter compared with 42 lakh a year ago in the hinterland.
"The construction of household toilets is resulting in a growing awareness about sanitation and hygiene, and people in rural India are buying quality sanitation products for their households," said KK Chutani, Executive Director-Consumer Care Business at Dabur India that sells Sanifresh toilet cleaners. "This growing awareness about sanitation and cleanliness is helping drive demand for branded toilet cleaners." Homegrown Dabur rolled out a 'Swachh Toilet, Swachh Bharat Abhiyan', which will provide germ-free public toilets across the country.
Potty training
From scaring consumers about the dangers lurking beneath their bottoms to spreading awareness on better hygiene practices, marketers of bathroom sanitation products such as Reckitt Benckiser, Hindustan Unilever and Dabur are doing their bit too.
For instance, HUL through its Domex Toilet Academy, made toilets accessible and affordable, while promoting the benefits of clean toilets and good hygiene. "We aim to provide innovative solutions and create self-sustaining delivery models which generate both public health benefits and business growth while simultaneously enhancing livelihoods by enabling local ownership and entrepreneurship," said an HUL spokesperson.
Reckitt Benckiser, that sells market leader brand Harpic, has roped in Amitabh Bachchan as ambassador to cover villages in nearly a dozen states, pledging Rs100 crore for its cleanliness drive.
"Projects like these do translate into consumers buying more hygiene products but the big impact will be in the long term. Our immediate priority is to change consumer behaviour," Reckitt Benckiser regional director, South Asia, Nitish Kapoor, had told ET last month.
Pricing strategy
Not everyone grabbed the cleaners just because of a higher awareness initiative. Pricing strategy by companies helped too as both Reckitt and Dabur launched smaller packs of 200-ml at an affordable Rs 24-30, especially for rural markets to generate more trials and usage. This, in contrast, to their products that are sold at an average Rs 50-70 for a half litre pack and over Rs100 for a litre pack of toilet cleaners in urban markets.
Experts feel that many consumers, who traditionally used products such as acid, bleach and detergents, could have shifted to branded products as reach for such products is just 10%. "Consumer awareness for sanitation and hygiene need in rural and semi-urban areas has gone up where more consumers not just bought cleaners but also upgraded within category to using products designed for germ removal. With overall penetration for the category still low, such a start could have forced many more consumers reaching out for cleaning and hygiene products in time to come," said Devendra Chawla, president - food and FMCG at Future Group, which runs Food Bazaar, India's largest food supermarket.
The World Health Organization and the United Nations Children's Education Fund ( UNICEF) estimate that there are more than 620 million people engaged in open defecation due to lack of access to proper sanitation and 60% of all open defecation is in India.
The government claims to have constructed around 80 lakh countryside toilets across India under Modi's Swachh Bharat mission, which aims to make India "open defecation-free" by 2019 by building 12 crore toilets in rural India at a projected cost of Rs 1.96 lakh crore. PM Modi has already called for corporate entities and private sector to bring in their resources and expertise in managing large-scale projects, while maximizing impact and efficiency.
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