Bengaluru: In a deal that will help it gain more share in the European market, Infosys announced that it has won a five-year deal from BMW Group for application basis infrastructure management services.
Infosys will open a new delivery centre in Munich as part of its global service delivery team and cover services, such as maintenance and operations of the web infrastructure, content management, SAP Basis operations, IT for IT (the company's internal IT system) and the business intelligence systems of BMW Group.
The second-largest IT services firm in the country garners around 24% of the revenues from Europe, where it is looking for more growth.
Last September, it acquired Swiss consulting firm, Lodestone, for over $350 million (Rs 1,930 crore). In the third quarter of fiscal 2013, the revenues from Euro went up 16.6% sequentially and 14.4% on constant currency terms. This was a reflection of the business gain through the acquisition.
"Our new delivery centre in Munich will help us achieve this objective for BMW and allow us to expand our local presence in a key growth market," said Ashok Vemuri, global head of manufacturing and engineering services at Infosys,
Overall Europe contributes a little under 30% of the $76 billion in exports that the Indian IT-BPO industry is expected to clock in the year to March 2013, with most of it coming from the UK and Nordic region
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Friday, March 15, 2013
Perfetti may set up plant in eastern India
New Delhi: Perfetti India is looking to set up a fourth plant to expand its manufacturing capacity.
Talking at the sidelines of his book launch, Stefano Pelle, Executive Vice-President and Chief Operating Officer, Perfetti Van Melle Group, South Asia, West Asia and Africa, said the company could possibly look at eastern India for the new plant, but added that the plant location had not been finalised yet.
The company currently manufactures in three locations -- Manesar (Haryana), Chennai and Rudrapur (Uttarakhand).
It owns candy and chewing gum brands that include Center Fresh, Alpenliebe, Happydent , Mentos, Big Babol, Chocoliebe, Chlormint.
The company has also entered the salty snack market with its brand Stop Not.
Asked if the new plant would be set up for new products, Pelle said the company needed to increase capacity for its current products, too.
“We have a lot of plans for the country. India is a very important market and the second largest market for the group and it has a huge potential,” Pelle said.
He added that the company had launched several new products in recent times that had been received well in the Indian market.
But, he did not give any specific details about future product launches stating that the company’s plate is already full with its current brands.
Talking at the sidelines of his book launch, Stefano Pelle, Executive Vice-President and Chief Operating Officer, Perfetti Van Melle Group, South Asia, West Asia and Africa, said the company could possibly look at eastern India for the new plant, but added that the plant location had not been finalised yet.
The company currently manufactures in three locations -- Manesar (Haryana), Chennai and Rudrapur (Uttarakhand).
It owns candy and chewing gum brands that include Center Fresh, Alpenliebe, Happydent , Mentos, Big Babol, Chocoliebe, Chlormint.
The company has also entered the salty snack market with its brand Stop Not.
Asked if the new plant would be set up for new products, Pelle said the company needed to increase capacity for its current products, too.
“We have a lot of plans for the country. India is a very important market and the second largest market for the group and it has a huge potential,” Pelle said.
He added that the company had launched several new products in recent times that had been received well in the Indian market.
But, he did not give any specific details about future product launches stating that the company’s plate is already full with its current brands.
HPCL's Rs 37,320-cr refinery project to come up in Rajasthan
Coimbatore: PSU oil major Hindustan Petroleum Corporation Ltd (HPCL) signed an MoU today in Jaipur with the Rajasthan Government for the establishment of a 9 MMTPA refinery –cum-petrochemical complex at an investment of Rs 37,230 crore.
HPCL is setting up the complex in Barmer district in association with Rajasthan State Refinery Ltd (RSRL) and others and it would go on stream in about four years.
In a statement to the stock exchanges, HPCL said the refinery would process the Rajasthan crude in addition to crude from other sources. The MoU was signed by Sudhansh Pant, Secretary, Mines & Petroleum of Government of Rajasthan and K.Murali, Director (Refineries), HPCL.
Veerappa Moily, Union Minister of Petroleum & Natural Gas, who was present on the occasion, expressed confidence that the refinery would become a catalyst for the development of downstream and other service sector industries in the area. He said the planned refinery project was the first project that was specifically designed to process indigenous crude.
Rajasthan Chief Minister Ashok Gehlot, lauding HPCL for its initiative, was confident that it would address the environmental issues and contribute to the community development in the region.
Among others who attended the MoU signing ceremony were Lakshmi Panabaka, Union Minister of State for Petroleum and Natural Gas, Rajasthan Ministers, and senior officials of GoI, Rajasthan Government, HPCL, EIL and ONGC.
HPCL is setting up the complex in Barmer district in association with Rajasthan State Refinery Ltd (RSRL) and others and it would go on stream in about four years.
In a statement to the stock exchanges, HPCL said the refinery would process the Rajasthan crude in addition to crude from other sources. The MoU was signed by Sudhansh Pant, Secretary, Mines & Petroleum of Government of Rajasthan and K.Murali, Director (Refineries), HPCL.
Veerappa Moily, Union Minister of Petroleum & Natural Gas, who was present on the occasion, expressed confidence that the refinery would become a catalyst for the development of downstream and other service sector industries in the area. He said the planned refinery project was the first project that was specifically designed to process indigenous crude.
Rajasthan Chief Minister Ashok Gehlot, lauding HPCL for its initiative, was confident that it would address the environmental issues and contribute to the community development in the region.
Among others who attended the MoU signing ceremony were Lakshmi Panabaka, Union Minister of State for Petroleum and Natural Gas, Rajasthan Ministers, and senior officials of GoI, Rajasthan Government, HPCL, EIL and ONGC.
JSPL to set up 1,500 MW plants in 5 African countries
Angul (Odisha): The Naveen Jindal-promoted Jindal Steel & Power Ltd (JSPL) will set up 1,500 MW of greenfield power generating capacity across five African nations.
“The company is going to set up 300 MW (2 x 150 MW plant) capacities each, across five African nations, including Senegal, Mozambique and Liberia,” a top JSPL executive told Business Line on condition of anonymity.
These projects are likely to start in the new financial year, starting April 1.
Investments
In addition, JSPL has decided to invest Rs 14,000 crore in the next financial year (2013-14).
The investments will be spread equally between its steel and power business, the executive added. The company is finalising its budget for next year. A chunk of investments for the power business in the next fiscal will go to the overseas greenfield plants, he said. The company will shortly decide how to raise funds for its capital expenditure plans. Recently, Bloomberg News had quoted JSPL group Chief Financial Officer Sushil Maroo saying that the company would mop up Rs 6,000 crore in 2013-14. This would include $400 million of overseas loans and $300 million of foreign currency bonds.
JSPL plans to achieve full capacity of 6 million tonnes in its upcoming steel plant in Angul, Odisha by 2015. Till now, the private steel and power company has commissioned 1.5 mt, said V.R. Sharma, Chief Executive for Steel Business, JSPL.
The company plans to export steel from Angul, which is nearly 210 km from Paradip port.
The Rs 30,000-crore project will source coal from the captive coal block Utkal-B1, about 7 km from the site.
“We are waiting for the mining lease for the block. As soon as we get this, we will start removing the over-burden,” Sharma told mediapersons visiting the project.
Till now, JSPL has spent Rs 16,000 crore for the steel and power project, to come up on 4,000 acres.
The company is maintaining a debt-equity ratio of 1.65:1. It has raised loans both from the domestic and overseas markets.
Land, connectivity
The company has got physical possession of 2,600 acres and payments have been made for 4,000 acres. The land acquisition is likely to be completed by July-August 2013, Sharma said.
JSPL has commissioned 405 MW capacity of the total 840 MW planned at the integrated steel and power plant in Angul.
Major infrastructure pending for the project include rail connectivity and the water pipeline.
The railway line is expected to be laid by May 2013 and the remaining 5 km pipeline for transporting water is to be completed in the next fortnight.
“The company is going to set up 300 MW (2 x 150 MW plant) capacities each, across five African nations, including Senegal, Mozambique and Liberia,” a top JSPL executive told Business Line on condition of anonymity.
These projects are likely to start in the new financial year, starting April 1.
Investments
In addition, JSPL has decided to invest Rs 14,000 crore in the next financial year (2013-14).
The investments will be spread equally between its steel and power business, the executive added. The company is finalising its budget for next year. A chunk of investments for the power business in the next fiscal will go to the overseas greenfield plants, he said. The company will shortly decide how to raise funds for its capital expenditure plans. Recently, Bloomberg News had quoted JSPL group Chief Financial Officer Sushil Maroo saying that the company would mop up Rs 6,000 crore in 2013-14. This would include $400 million of overseas loans and $300 million of foreign currency bonds.
JSPL plans to achieve full capacity of 6 million tonnes in its upcoming steel plant in Angul, Odisha by 2015. Till now, the private steel and power company has commissioned 1.5 mt, said V.R. Sharma, Chief Executive for Steel Business, JSPL.
The company plans to export steel from Angul, which is nearly 210 km from Paradip port.
The Rs 30,000-crore project will source coal from the captive coal block Utkal-B1, about 7 km from the site.
“We are waiting for the mining lease for the block. As soon as we get this, we will start removing the over-burden,” Sharma told mediapersons visiting the project.
Till now, JSPL has spent Rs 16,000 crore for the steel and power project, to come up on 4,000 acres.
The company is maintaining a debt-equity ratio of 1.65:1. It has raised loans both from the domestic and overseas markets.
Land, connectivity
The company has got physical possession of 2,600 acres and payments have been made for 4,000 acres. The land acquisition is likely to be completed by July-August 2013, Sharma said.
JSPL has commissioned 405 MW capacity of the total 840 MW planned at the integrated steel and power plant in Angul.
Major infrastructure pending for the project include rail connectivity and the water pipeline.
The railway line is expected to be laid by May 2013 and the remaining 5 km pipeline for transporting water is to be completed in the next fortnight.
Govt clarifies provision for corporate investments in tax-free bonds
Mumbai: The government today clarified that tax-free bonds are eligible investments for companies in a bid to boost corporate participation in such instruments.
The government's move comes after ambiguity over interpretation of a provision in the Companies Act relating to inter-corporate deposits affected investments by corporate bodies in tax-free bond issuances. "It's hereby clarified that in cases where the effective yield on tax-free bonds is greater than the yield on prevailing bank rate, there is no violation of the Section 372A(3) of Companies Act, 1956," the ministry of corporate affairs said in a circular.
The Section 372A(3) of the Companies Act says: "No loan to any corporate body shall be made at a rate of interest lower than the prevailing bank rate, being the standard rate made public under section 49 of the Reserve Bank of India Act, 1934." Currently, the bank rate is at 8.75 per cent, while the coupon rate offered by such instruments are in the range between 6.85 per cent and 7.2 per cent. As a result, most companies were staying away from investing in such instruments for fear of breaching the Company Act provision.
The bank rate was untouched at six per cent since 2003. Last month, RBI as a "one-time technical adjustment" decided to align the bank rate with the so-called marginal standing facility (MSF), from where banks can borrow overnight, effective February 13. As a result, the bank rate shot up from six per cent to 9.5 per cent. Currently, both MSF and the bank rate are at 8.75 per cent.
The six tax-free bond issues currently in the market are finding it challenging to garner subscription. The corporate affairs ministry in a statement attributed the tepid response to restriction under Section 372A(3). Next year, the government has allowed fund-raising to the tune of Rs 50,000 crore through tax-free bond issuances. Lack of clarity would have impacted investments of up to Rs 5,000 crore, as up to 10 per cent of bond public issues are reserved for corporate subscribers.
In addition, some issuers had planned to raise funds through private placement for big-ticket corporate and institutional investors. "This clarification puts to rest the ambiguity on eligibility of investments by corporate bodies in tax-free bonds currently on offer," said the ministry in a statement.
The government's move comes after ambiguity over interpretation of a provision in the Companies Act relating to inter-corporate deposits affected investments by corporate bodies in tax-free bond issuances. "It's hereby clarified that in cases where the effective yield on tax-free bonds is greater than the yield on prevailing bank rate, there is no violation of the Section 372A(3) of Companies Act, 1956," the ministry of corporate affairs said in a circular.
The Section 372A(3) of the Companies Act says: "No loan to any corporate body shall be made at a rate of interest lower than the prevailing bank rate, being the standard rate made public under section 49 of the Reserve Bank of India Act, 1934." Currently, the bank rate is at 8.75 per cent, while the coupon rate offered by such instruments are in the range between 6.85 per cent and 7.2 per cent. As a result, most companies were staying away from investing in such instruments for fear of breaching the Company Act provision.
The bank rate was untouched at six per cent since 2003. Last month, RBI as a "one-time technical adjustment" decided to align the bank rate with the so-called marginal standing facility (MSF), from where banks can borrow overnight, effective February 13. As a result, the bank rate shot up from six per cent to 9.5 per cent. Currently, both MSF and the bank rate are at 8.75 per cent.
The six tax-free bond issues currently in the market are finding it challenging to garner subscription. The corporate affairs ministry in a statement attributed the tepid response to restriction under Section 372A(3). Next year, the government has allowed fund-raising to the tune of Rs 50,000 crore through tax-free bond issuances. Lack of clarity would have impacted investments of up to Rs 5,000 crore, as up to 10 per cent of bond public issues are reserved for corporate subscribers.
In addition, some issuers had planned to raise funds through private placement for big-ticket corporate and institutional investors. "This clarification puts to rest the ambiguity on eligibility of investments by corporate bodies in tax-free bonds currently on offer," said the ministry in a statement.
Wave Infra to invest Rs 500 cr in affordable housing
New Delhi: Wave Infratech, the realty arm of Ponty Chadha’s Wave Group, will invest Rs 500 crore to set up its first affordable housing venture in the Delhi national capital region area, which will offer homes in a price range of Rs 14-18 lakh.
The construction for the project, ‘Dream Homes’, will start this month at the company’s integrated township — Wave City in Ghaziabad, Uttar Pradesh — and will be completed in three-four years, R K Panpalia, managing director, Wave Group, told Business Standard. In the first phase, the company will set up 1,500 flats in this segment.
With the recent Budget announcements, the sales in the affordable segment are expected to increase, he said. In the Budget, the limit for deduction of home interest was increased to Rs 2.5 lakh from Rs 1.5 lakh for the first time home buyers for a loan amount of up to Rs 25 lakh.
Wave City, which is spread over 4,500 acres, will have hospitals, schools and other commercial set-up, including hotels in the second phase of the project, besides villas, independent floors and plots. The company will offer 1BHK and 2BHK homes with an area of 575-800 square feet. In total, it will provide 3,500 flats — 800 (1BHK) and 2,700 (2BHK) homes.
The investment will be done through internal accruals and debt and the company has no plans to raise money through private equity or go in for an initial public offerring at the moment, Panpalia added.
The construction for the project, ‘Dream Homes’, will start this month at the company’s integrated township — Wave City in Ghaziabad, Uttar Pradesh — and will be completed in three-four years, R K Panpalia, managing director, Wave Group, told Business Standard. In the first phase, the company will set up 1,500 flats in this segment.
With the recent Budget announcements, the sales in the affordable segment are expected to increase, he said. In the Budget, the limit for deduction of home interest was increased to Rs 2.5 lakh from Rs 1.5 lakh for the first time home buyers for a loan amount of up to Rs 25 lakh.
Wave City, which is spread over 4,500 acres, will have hospitals, schools and other commercial set-up, including hotels in the second phase of the project, besides villas, independent floors and plots. The company will offer 1BHK and 2BHK homes with an area of 575-800 square feet. In total, it will provide 3,500 flats — 800 (1BHK) and 2,700 (2BHK) homes.
The investment will be done through internal accruals and debt and the company has no plans to raise money through private equity or go in for an initial public offerring at the moment, Panpalia added.
Tata Comm plans cable link to Bangladesh
New Delhi: Tata Communications is planning a terrestrial optical fibre cable link between India and Bangladesh in collaboration with BD Link Communications Ltd.
The proposed cable will connect Bangaon in West Bengal to Benapol in Bangladesh.
BD Link Communications, which is a Bangladeshi international telephony service provider, will lay the cable in that country. Tata Communications will be using a spare fibre pair that has already been laid and operational for connectivity with other Bangladeshi operators. Tata Communications will splice up the existing cable at Petrapol in West Bengal.
Bilateral traffic
“The proposed optical fibre link shall be used to for bilateral traffic (international long distance voice and data, Internet, as well as for transit traffic between various countries and Bangladesh via India,” stated an internal Government note seen by Business Line.
Tata Communications has shared the plan with the Government for approval since the Government holds a minority share in the company.
The Government has given an in-principle agreement to the cable link because the company had earlier done a similar link with Novacom, Summit Communications and Mango Teleservices, according to the note.
“However, the final clearance shall be given only after the link is ready and successful demonstration of the interception and monitoring capabilities to the satisfaction of the security agencies,” the note stated.
The proposed cable will connect Bangaon in West Bengal to Benapol in Bangladesh.
BD Link Communications, which is a Bangladeshi international telephony service provider, will lay the cable in that country. Tata Communications will be using a spare fibre pair that has already been laid and operational for connectivity with other Bangladeshi operators. Tata Communications will splice up the existing cable at Petrapol in West Bengal.
Bilateral traffic
“The proposed optical fibre link shall be used to for bilateral traffic (international long distance voice and data, Internet, as well as for transit traffic between various countries and Bangladesh via India,” stated an internal Government note seen by Business Line.
Tata Communications has shared the plan with the Government for approval since the Government holds a minority share in the company.
The Government has given an in-principle agreement to the cable link because the company had earlier done a similar link with Novacom, Summit Communications and Mango Teleservices, according to the note.
“However, the final clearance shall be given only after the link is ready and successful demonstration of the interception and monitoring capabilities to the satisfaction of the security agencies,” the note stated.
H and R Johnson invests Rs 400 crore for expansion of tiles manufacturing facility
Chennai: H & R Johnson, a division of Prism Cement is investing Rs 400 crore for the expansion of its industrial tiles manufacturing facility at Dewas, Madhya Pradesh.
With this, the company's capacity will go up to 54 million square meters per annum.
The company is investing in the expansion to cater to demand from small and medium firms across the country, said Ravi Aravamuthan, General manage, H&R Johnson India.
"The small and medium enterprises segment has the potential to provide greater acceleration to the industrial business. H&R Johnson sees the potential to engage with the small and midsize enterprises in India to deliver best industrial flooring solutions at competitive economics. Apart from our wide range of industrial solutions portfolio catering to over 20 industry types, we have basket of products to combine aesthetics and industrial functionality to suit unique requirement of various SME units," he said.
The Industrial flooring category accounts for about 7% of the overall Indian ceramic tile industry. Johnson Endura enjoys market leadership in this segment with over 50% market share, according to the company.
With this, the company's capacity will go up to 54 million square meters per annum.
The company is investing in the expansion to cater to demand from small and medium firms across the country, said Ravi Aravamuthan, General manage, H&R Johnson India.
"The small and medium enterprises segment has the potential to provide greater acceleration to the industrial business. H&R Johnson sees the potential to engage with the small and midsize enterprises in India to deliver best industrial flooring solutions at competitive economics. Apart from our wide range of industrial solutions portfolio catering to over 20 industry types, we have basket of products to combine aesthetics and industrial functionality to suit unique requirement of various SME units," he said.
The Industrial flooring category accounts for about 7% of the overall Indian ceramic tile industry. Johnson Endura enjoys market leadership in this segment with over 50% market share, according to the company.
US firm Harsco open to acquisitions in railway infrastructure
Hyderabad: Harsco Corporation, a global industrial services company with revenues of $3 billion, is looking at forging alliances and acquisitions in India.
The company, which is into metals and minerals, infrastructure, rail and industrial businesses, is operating in India for two decades but reports small percentage of its global revenues.
The newly-appointed President and Chief Executive Officer of the Pennsylvania-headquartered company, Patrick K. Decker, is in India to take stock of the company affairs and business opportunities here.
Decker said there was huge scope for business in railway infrastructure in China and India.
The old and worn-out rail infrastructure needs to be rebuilt. “We are in early stages of pursuing that business,” he said.
Addressing a press conference here, he, however, refused to put a number to the opportunities being pursedor the target for Indian operations. “We are open to acquisitions. But I am against acquiring any company for the sake of acquisitions,” he said.
The company runs a Global Innovation Park here with 220 staffers. Of the 19,000 employees globally, around 700 work for its India operations. It recently bagged a 15-year $100 million contract with Jindal Stainless. Harsco’s services are scheduled to begin in the second half of this year and will include the company’s specialised process technologies for recovering metal from stainless steel production by-products.
The firm acquired over 20 companies globally. With a cash back-up of $100 million, it also had credit lines and opportunities to raise debt for buy-outs, if any, he said.
Environmental issues
Refusing to comment on the country’s overall (mining and environment) policies, he said these trends would continue, making Harsco’s services more valuable.
On the growth projections globally, he said the company was cautiously optimistic.
The company, which is into metals and minerals, infrastructure, rail and industrial businesses, is operating in India for two decades but reports small percentage of its global revenues.
The newly-appointed President and Chief Executive Officer of the Pennsylvania-headquartered company, Patrick K. Decker, is in India to take stock of the company affairs and business opportunities here.
Decker said there was huge scope for business in railway infrastructure in China and India.
The old and worn-out rail infrastructure needs to be rebuilt. “We are in early stages of pursuing that business,” he said.
Addressing a press conference here, he, however, refused to put a number to the opportunities being pursedor the target for Indian operations. “We are open to acquisitions. But I am against acquiring any company for the sake of acquisitions,” he said.
The company runs a Global Innovation Park here with 220 staffers. Of the 19,000 employees globally, around 700 work for its India operations. It recently bagged a 15-year $100 million contract with Jindal Stainless. Harsco’s services are scheduled to begin in the second half of this year and will include the company’s specialised process technologies for recovering metal from stainless steel production by-products.
The firm acquired over 20 companies globally. With a cash back-up of $100 million, it also had credit lines and opportunities to raise debt for buy-outs, if any, he said.
Environmental issues
Refusing to comment on the country’s overall (mining and environment) policies, he said these trends would continue, making Harsco’s services more valuable.
On the growth projections globally, he said the company was cautiously optimistic.
Green Channel Facilities to Firms with a Turnover of Rs.1000 Crore
New Delhi: Government has taken a decision to grant green channel status for DGS&D Rate Contracts to PSUs and firms (Indian as well as foreign) having an average turnover of Rs.1000 crore or more during the last three years and making profit in any three years of the last five years.
So far, twenty firms have been given green channel status. The area-wise details of these firms are Delhi -04; Mumbai-04; Gurgaon-05; Bangaluru-03; Ahmedabad-01; Vadodara-01; and Noida-02.
More reputed firms in international and national markets would be available on DGS&D Rate Contracts which will facilitate user departments.
This information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari in a written reply in the Rajya Sabha today.
So far, twenty firms have been given green channel status. The area-wise details of these firms are Delhi -04; Mumbai-04; Gurgaon-05; Bangaluru-03; Ahmedabad-01; Vadodara-01; and Noida-02.
More reputed firms in international and national markets would be available on DGS&D Rate Contracts which will facilitate user departments.
This information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari in a written reply in the Rajya Sabha today.
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