Mumbai: The tide has turned for the telecom sector in India, as growth and profitability has accelerated in recent times. Tower companies are reaping benefits of a turnaround in the sector as operators have started investing in networks to boost data penetration.
Bharti Infratel, a leading tower and infrastructure player, reported robust numbers for the fourth quarter. The company’s consolidated revenues for the March quarter grew four per cent to Rs 2,790 crore compared to the corresponding quarter last year, while consolidated Ebitda grew 16 per cent year-on-year to Rs 1,160 crore. For the full year, revenues grew five per cent to Rs 10,800 crore and Ebitda by 16 per cent to Rs 4,400 crore.
But the real number to track is the tower sharing factor and operating free cash flow (operating profit minus capital expenditure). The company’s tower sharing factor has moved up to two at the end of March from 1.91 a year ago. On a consolidated basis, the average sharing factor stood at 1.96. What this implies is that for incremental capex, the company's profitability is increasing as more companies use the same infrastructure and location.
Analysts say the growth in profitability will not be driven by a higher number of towers added but higher tenancies. In this context, Bharti Infratel stands to gain from the deal it has signed with Reliance Jio.
A detailed report on Bharti Infratel by Nomura, says: “R-Jio’s recent press releases indicate a lot of focus on the data segment including digital services; this coupled with its higher frequency bandwidth (1,800 Mhz and 2,300 MHz) should see a high number of base stations being rolled out. For the bulk of these, we expect R-Jio to lease towers to enter the market sooner.”
With tower sharing factor improving and capital expenditure on new towers remaining stable, the company’s operating income and free cash flows are expected to steadily increase. Consolidated free cash flows increased during the March quarter increased by 12 per cent to Rs 539 crore. For the full financial year, Bharti Infratel's free cash flows jumped 48 per cent year-on-year to Rs 2,600 crore.
Bharti Infratel has spent Rs 1,500 crore on capital expenditure and in FY15 it will be Rs 2,000 crore. Analysts estimates a 20-23 per cent free cash flow compounded annual growth rate over FY13-16. The company’s free cash flow yield is also highest amongst global tower companies.
Success in my Habit
Sunday, April 27, 2014
IndusInd Bank to foray into asset reconstruction
Kolkata: IndusInd Bank plans to start asset reconstruction business in the next couple of months. The private-sector lender has already firmed up its business strategy and plans to partner asset reconstruction companies (ARCs) for this new business venture.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
"I think our new initiative, which is going to launch in the next two months, is about asset reconstruction. We will do asset reconstruction within the bank but in tie-ups with ARCs. The business plan is ready. We believe a huge stock of assets is coming into the ARCs as a business area that we need to look at and we will exploit," Romesh Sobti, managing director and chief executive of IndusInd Bank, told analysts last week.
The weak economic environment as well as stress on credit quality has led to a sharp rise in the sale of bad loans to ARCs in recent months. Last month, banks reportedly sold about Rs 10,000 crore of bad loans to ARCs.
IndusInd Bank itself sold Rs 35 crore worth of loans to ARCs in the January-March quarter. In the previous quarter, it had sold Rs 25 crore. The bank has a security receipt book of Rs 138 crore.
IndusInd Bank will not create a separate subsidiary for its ARC business but will partner existing companies involved in this business. "We are going to set up a business where we will work with distressed debt; so we will acquire either a joint venture with other ARCs or through a project with other ARCs. But we are not going to set up our own ARC," said Suhail Chander, head of corporate and commercial banking at IndusInd Bank.
"These are assets that we think that are resolvable... that we will acquire now then resolve over the next one or two years depending on the time-frame that it takes to resolve the asset," he added.
The bank is currently in the process of allocating capital for this business.
While the Reserve Bank of India has barred ARCs from acquiring bad loans from sponsor banks on a bilateral basis, it has allowed such transactions if the asset is auctioned in a transparent manner, on an arm's-length basis and if prices are determined by market factors.
DoT to showcase India as telecom gear manufacturing hub in Israel
Kolkata: A top level telecom department (DoT) team will participate in a global convention next month in Israel to showcase India as a world-class networks gear manufacturing hub amid mounting concerns in the US and Europe about India's local sourcing and screening rules.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
The DoT's decision comes after the foreign ministry recently exhorted telecom secretary M F Farooqui to expedite steps to showcase India's telecom gear manufacturing abilities and policies in key markets like Israel, in a bid to boost bilateral trade.
"There isn't much awareness in Israel about India's capabilities in high-tech sectors, its qualified manpower or its telecom industry's ability to manufacture at a commercially scalable level," wrote India's ambassador to Israel, Jaideep Sarkar, in a recent letter to Farooqui seen by ET.
Sarkar added that "DoT needed to project India's abilities and the upcoming three-day convention in Tel Aviv was an excellent opportunity to steer the country's bilateral economic partnership with Israel."
But industry circles familiar with matters said that DoT could face some tough questions at the Tel Aviv event amid US and Europe's mounting concerns about India's local sourcing rules and its decision to locally screen imported network gear from July 1 despite it having been cleared by globally certified labs.
Leading US trade lobbies have warned that such double testing could hold up critical telecom gear supplies and also increase cost of telecom services in India, post July.
The government's technology research arm Centre for Development of Telematics (C-DoT) along with Telecom Consultants India Ltd, Micromax Informatics Ltd and Telecom Centres of Excellence, India (TCOE) will also participate in the three-day telecom covention in Israel, starting May 20.
A related government note indicates the DoT delegation will interact with top Israeli developers of IT and telecom security products at the convention. Senior C-DoT executives are also likely to explore R&D partnerships with Israel-based companies involved in telecom R&D.
The upcoming developments come at a time when India is working with Israel's cyber intelligence solutions provider, Verint Systems to address cyber security concerns.
Communications minister Kapil Sibal had recently said Verint was keen to work with the Indian government to address the issue of intercepting encrypted communications like Gmail, Yahoo.mail to Skype among others.
Indications are that senior Verint executives will be present at the Tel Aviv event.
Delhi Airport to become zero diversionary airport
New Delhi: Delhi Airport will soon become a zero-diversionary airport, as the Committee set up in January this year, by the Director General of Civil Aviation, to look into the matter, has submitted its report with 27 recommendations. The Terms of Reference of the Committee were :-
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
To make Delhi a zero diversionary airport without compromising safety of aircraft operations;
To prepare a comprehensive document on low visibility operations defining duties and responsibilities of all stakeholders; and
To look into the specific issues pertaining to international operations and modalities to deal with stranded passengers during low visibility conditions
The Committee’s recommendations relate to India Meteorological Department, Airports Authority of India, Delhi International Airport Ltd, Bureau of Civil Aviation Security, DGCA and various airlines. The Secretary, Ministry of Civil Aviation, Shri Ashok Lavasa, in a meeting with all stakeholders who would be responsible for carrying out various activities within their ambit of responsibility, emphasised to ensure that various actions on the recommendations must be completed before October this year.
The Delhi International Airport Ltd, during the last three winter seasons, has witnessed a total of 289 diversions. There were 57 diversions in 2011, 89 in 2012 and 143 last year. It is expected that after the recommendations of the Committee are implemented, the chances of diversions of flights at Delhi Airport will come down drastically. The Committee has also given recommendations for setting up of a procedure for dealing with stranded passengers if the flight is delayed or diverted at Delhi and other alternate airports.
Director General Civil Aviation Dr. Prabhat Kumar has written to heads of the various stakeholders to draw a definite timeline for the immediate implementation of various recommendations before the onset of next winter season.
Following are the recommendations made by the Committee:
Meteorological department should upgrade the meteorological facilities at IGIA and its designated alternate airports. In this regard, integration of meteorological data in one panel should be considered.
Additional RVR equipment should be installed wherever needed and a provision of live RVR for all the runways at IGIA be made at ATC Unit.
During fog, a dedicated fog forecast should be provided at three hour intervals for IGIA and alternate airports.
New equipment for measuring instantaneous low level wind, temperature, moisture content should be commissioned at IGIA for increasing accuracy of forecast (onset and lifting timings of fog).
Alternate airports near IGIA viz. Jaipur, Lucknow and Amritsar should be upgraded to Cat IIIB level.
ATC shall establish ATFM Unit to implement capacity adjustment and collaborative decision making procedures.
ATC shall provide proactive diversion management in coordination with meteorological department and other airport operators.
Airport operators shall not schedule any maintenance work at IGIA and alternate airports during the fog period unless it is unavoidable.
AAI shall ensure that required navigational aids are maintained in fully serviceable conditions both at IGIA and alternate airports during fog period.
ATC shall separate Cat I traffic from Cat II/III traffic as applicable for holding at Delhi. ATFM Unit shall decide when to suspend Cat I/II holding at Delhi.
ATC shall define specific trigger points for implementation of progressive flow control measures.
During fog season, operators shall not be allowed to file IGIA as alternate airport without prior permission of ATC.
AIP shall be amended to indicate that the term fuel emergency would not be recognised at Indian aerodromes.
DIAL shall ensure that all foreign carriers deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season subject to compliance of weekly capacity entitlements.
DIAL shall coordinate with AAI for issuance of NOTAM and AIP amendments for full implementation of Recommendation No. 13.
DIAL shall implement restrictions on use of APU at T3 IGIA with the objective of reducing pollution.
DIAL should identify and implement measures for reducing vehicular traffic at IGIA during low visibility operations.
DIAL shall make provision for container silage at IGIA in line with international practice.
Operators shall deploy only Cat IIIB compliant aircraft along with qualified flight crew during winter season to/from IGIA. For this purpose, operators must ensure adequate capacity build-up in terms of aircraft capability and crew qualification well in time before the onset of next fog season. All scheduled airlines shall provide their detailed Cat III status indicating aircraft and crew numbers through a consolidated return to DGCA every year.
During the fog period, operators shall indicate their take-off and landing minima in Item No. 18 of ICAO Flight Plan.
Operators shall provide their proposed schedule indicating aircraft Cat II/Cat III capability details one day prior to actual operations during the fog period. This information should reach ATC latest by 2200 hrs every day. Any tactical changes after filing the requisite information must be notified to ATC as soon as practicable.
DGCA shall amend regulations applicable to authorisation of aircraft and pilots for Cat II/III operations in line with major international regulations.
BCAS shall formulate and issue passenger deboarding procedure during delays in low visibility at both the terminals of IGIA.
Standard Operating Procedure (SOP) for de-boarding of passengers shall be developed and implemented at IGIA during low visibility operations.
All stakeholders viz. DIAL, BCAS, airlines, ATC and GHAs shall coordinate towards development of joint SOP.
To effectively implement the strategies, a dedicated group of stakeholders be constituted to oversee fog related issues at IGIA.
Airlines, ATC and airport operators shall conduct a one day refresher training programme dedicated to low visibility operations for their concerned operations personnel. Regular pre-fog consultation and preparatory exercises involving all stakeholders shall be held well in advance before the commencement of fog season to duly assess the capabilities of the entire system and address any shortcomings.
Thursday, April 24, 2014
German tyre major Continental bets big on India
New Delhi: German tyre major Continental has said India will be a key focus market for the company for new investments as it expands here following the acquisition of Modi Tyres in 2011. The company said it is also open to fresh acquisitions in India to gain a sizeable foothold faster, though there are no immediate targets.
"India is a critical market for Continental and despite short-term challenges, I strongly believe that that it is a strong long-term prospect," Nikolai Setzer, member of Continental's executive board and head of tyre division, told TOI here.
The company sells truck/bus radial and bias tyres, which are manufactured at its plant at Modipuram in Uttar Pradesh. Also, it is present in the passenger car tyre market, while making two-wheeler tyres in partnership with Metro Tyres.
Setzer, who heads Continental's 9.6 billion euro tyre business, said India and other BRIC countries are crucial for registering growth as traditional strongholds in the West decline. "Europe and North America contribute 83% to our sales. But, these regions are only stable and not growing. Out of these mature markets, you can only get a growth of 1-2%.From emerging countries, you can still expect a growth of 4-5%. It can be more in a certain year."
"Last year, we invested about 800 million euros in the tyre division... (and) it is fair to assume that a big portion has gone to BRIC countries." The company has similar investment plans for this year, and Setzer said a substantial portion will again come to BRIC countries. "BRIC will remain a big focus in 2014 as well."
Speaking about the Indian market, he said that having local production adds strength to the company's product portfolio. "We have found the right set-up. We have an installed capacity for bias tyres and these are expected to be a substantial part of the market for some time. Installing radials in that plant also gives us great economies of scale and a leverage that we can use."
Setzer conceded that competition in the Indian market is intense considering that there are strong local players like Apollo, MRF and JK Tyres apart from global biggies like Michelin. "I have not found even one market in the world that is easy to crack... But looking at the market here in India for us, we have now local production for our range. We have premium technology, we have a very experienced sales team that knows the market very well, and we have good dealers. We believe we have everything which we need and a very good package to be successful in the market and find our market place. We see there is room for us."
Asked whether the company is open to fresh acquisitions after buying out Modi in 2011, he said there are no immediate plans, though the company is always open for the right opportunity."We just acquired Modi Tyres in 2011. We have invested 50 million euros which is substantial and which we are currently ramping up. The appetite right now for an additional acquisition is very limited. We have to ramp this up first and make it successful. However, we have the financial means and we are open, and do monitor the market. If there is a great opportunity, we will never rule it out."
"India is a critical market for Continental and despite short-term challenges, I strongly believe that that it is a strong long-term prospect," Nikolai Setzer, member of Continental's executive board and head of tyre division, told TOI here.
The company sells truck/bus radial and bias tyres, which are manufactured at its plant at Modipuram in Uttar Pradesh. Also, it is present in the passenger car tyre market, while making two-wheeler tyres in partnership with Metro Tyres.
Setzer, who heads Continental's 9.6 billion euro tyre business, said India and other BRIC countries are crucial for registering growth as traditional strongholds in the West decline. "Europe and North America contribute 83% to our sales. But, these regions are only stable and not growing. Out of these mature markets, you can only get a growth of 1-2%.From emerging countries, you can still expect a growth of 4-5%. It can be more in a certain year."
"Last year, we invested about 800 million euros in the tyre division... (and) it is fair to assume that a big portion has gone to BRIC countries." The company has similar investment plans for this year, and Setzer said a substantial portion will again come to BRIC countries. "BRIC will remain a big focus in 2014 as well."
Speaking about the Indian market, he said that having local production adds strength to the company's product portfolio. "We have found the right set-up. We have an installed capacity for bias tyres and these are expected to be a substantial part of the market for some time. Installing radials in that plant also gives us great economies of scale and a leverage that we can use."
Setzer conceded that competition in the Indian market is intense considering that there are strong local players like Apollo, MRF and JK Tyres apart from global biggies like Michelin. "I have not found even one market in the world that is easy to crack... But looking at the market here in India for us, we have now local production for our range. We have premium technology, we have a very experienced sales team that knows the market very well, and we have good dealers. We believe we have everything which we need and a very good package to be successful in the market and find our market place. We see there is room for us."
Asked whether the company is open to fresh acquisitions after buying out Modi in 2011, he said there are no immediate plans, though the company is always open for the right opportunity."We just acquired Modi Tyres in 2011. We have invested 50 million euros which is substantial and which we are currently ramping up. The appetite right now for an additional acquisition is very limited. We have to ramp this up first and make it successful. However, we have the financial means and we are open, and do monitor the market. If there is a great opportunity, we will never rule it out."
M&M in pact to source seed potato from Holland
Mumbai: The agriculture division of Mahindra & Mahindra has entered into a joint venture with Holland-based seed company HZPC for sourcing high quality potato seeds for Indian farmers.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
The 100-year-old HZPC is into potato breeding, growing seed potato and trading. Mahindra will hold 60 per cent in the joint venture.
The new company plans to construct a modern facility to produce tissue culture plants and mini-tubers.
The aim of the facility is to offer high quality mini-tubers and early generation seed potatoes to farmers.
Mahindra, which started the seed potato business in 2005, has about 600 farmers growing seed potato through contract farming arrangements.
The company supplies farmers with high quality mini-tubers which are produced at their facility at Palampur in Himachal Pradesh.
Mahindra buys back seed potato from the farmers at a minimum guaranteed price, and distributes it to farmers in Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra and West Bengal. Ashok Sharma, Chief Executive (Agriculture and Allied Businesses), Mahindra & Mahindra, said the company requires special technology and additional investments in the supply chain to grow the business further.
Gerard Backx, CEO, HZPC, said the joint venture intends to provide new varieties of seed potato to Indian farmers and also open up export avenues for them.
“We have already sent the latest 19 varieties from Europe for testing in India, and are sure that some of them will go a long way in enhancing productivity in the country,” he said.
HZPC is owned by 800 international seed potato growers, and has a turnover of about €300 million.
India produces about 43 million tonnes of potato annually. Of this, about 10 per cent is used by farmers as seeds.
JSW Steel to commission cold rolling mill in Karnataka tomorrow
Bellary: JSW Steel will commission a Rs. 4,500-crore Cold Rolling Mill (CRM) at its integrated steel plant in Torangal, Karnataka, on Friday.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
The unit, which will produce high-strength auto-grade steel, has an installed capacity of 2.3 million tonnes a year.
“Our CRM facility is the most sophisticated plant by configuration, and has the capability to produce high-strength and advanced high-strength steel, both in uncoated and coated (galvanised and galvannealed categories) and wider width up to 1,870 mm,” Vinod Nowal, Deputy Managing Director, JSW Steel, told newspersons.
The auto-grade steel produced here, with technical assistance from JFE of Japan, will be an import substitute.
Of the auto sector’s total requirement of 4.5 mt of steel, 20 per cent, mostly high-strength steel, was imported, he said. Nowal added that the value-added product would help the automobile industry source high-strength steel domestically and cut its production cost by 10-15 per cent.
The high-strength material was light-weight and would be used for external panels of automobiles. It would help improve their fuel efficiency, said Nowal.
“Efforts are on to meet the quality expectations of the buyers, who have been importing from Japan and Europe. The CRM facility can produce continuously annealed cold rolls up to a strength of 980 MPA (Mega Pascals),” he said.
Auto majors Maruti Suzuki, Nissan, Hyundai and Toyota are among the prospective customers for the high-strength steel.
Infosys, Orange offer TV apps with customised content
Bangalore: Infosys has partnered with telecom company Orange to provide Internet TV to its customers.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
In a statement, Infosys said that it will deliver a portfolio of interactive TV apps on the Orange Livebox Play. The TV apps will be powered by Infosys DigitizeEdge, a digital asset and experience platform for TV operators, media companies, advertisers and content publishers, the statement added.
Further, Infosys will leverage this cloud-based platform to enable Orange to deliver a range of lifestyle-centric video and contextual over-the-top (OTT) services through TV apps to enhance viewer experience and interact with their TV sets.
The platform will customise content for Orange’s viewers in France and enable them to see TV content on mobile devices or inside their cars, according to Infosys officials.
However, Infosys did not reveal the term of the deal or its size. Rajesh K Murthy, Global Head, Energy and Telecom, Infosys said: “We are seeing traditional pay-TV providers as well as telecommunication and cable firms continuously looking to provide Web-based services on existing TVs. “Our solution aggregates multiple content players in the digital value chain to deliver a superior experience for viewers and generate new revenue opportunities for service providers,” he added.
DigitizeEdge is a part of the Infosys Edge series of solutions, which contributes to its products platforms and services (PPS) revenues. Since 2011, when it was launched, PPS revenues contributed 5.2 per cent of its total revenues in 2014 fiscal, down marginally from 5.7 per cent in fiscal 2013. Also, the telecom business, which comes under Energy, Utilities, Communications and Services, in the 2014 fiscal contributed 8.3 per cent to its revenues, down from 9.7 per cent in the 2013 fiscal.
Canon sets sights on India security-camera market
Hyderabad: At a time when regular compact cameras are losing ground to smartphones equipped with mega-pixel cameras, digital imaging firm Canon India is planning to get into the network security camera market.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
“We have made forays into photo albums, cinematography and medical imaging. Sometime later this year, we will launch our first product in the Indian security camera market,” said Alok Bharadwaj, Executive Vice-President.
He was in Hyderabad for the national launch of Canon’s new series of inkjet printers.
Bharadwaj said Canon’s product in the security segment was recently launched in some overseas markets.
“We see significant potential in this sector, as security concerns are rising, as also spends on security infrastructure,” he told mediapersons.
An Assocham study had predicted that the closed-circuit television market in India is likely to be worth Rs. 2,200 crore by 2015, growing at an annual rate of 30 per cent.
Canon, which has a market share of about 24 per cent in the domestic inkjet market, is aiming to increase this to 30 per cent this year, on the back of its new launches.
Prices of the new printers range from Rs. 5,495 to Rs. 22,000.
The inkjet market is estimated to be worth Rs. 1,000 crore, and sees sales of 1.2 million units annually, with market leader HP cornering a 59 per cent share.
The Japanese firm says its new printers have lowered the running cost from Rs. 3.33 a page for a mono print and Rs. 5.32 for a colour print to 99 paise and Rs. 2.50, respectively.
“Some of our new launches are focussed on students. We have rolled out a marketing campaign titled ‘Super Student’ for our new range,” he said.
Synechron enters Hyderabad, Bangalore to be 'closer to clients'
Hyderabad: Synechron, which provides IT solutions for the financial services industry, will invest $30-35 million on its expansion in India.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
The company, with over 5,000 employees globally, has announced the expansion of its Hyderabad and Bangalore facilities.
Of the 5,000 employees, about 4,000 work at the Pune office that was set up along with the company’s New York operations.
“We have decided to expand our presence in India by setting up facilities in Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients. The additional centres will also help us as back-up,” Faisal Husain, Founder and Global Chief Executive Officer of Synechron, told Business Line over phone from Bangalore.
While the Bangalore facility has 150 employees, the Hyderabad office employs 50.
The New York-headquartered firm earned 90 per cent of its $207 million revenues in 2013-14 from the financial services market.
The remaining 10 per cent came from digital media solutions.
“Our target is to grow at 20-30 per cent in the current financial year,” he said.
Replying to a question on Synechron’s global outlook, Husain said that the US market has been picking up.
“We can expect the same trend in the European Union. We see a turnaround happening.
“We are confident of achieving the growth target. We grew by 25 per cent in 2008-09, the year the financial crisis hit the market,” he said. The company offers solutions in IT strategy, architecture, application development, maintenance, business intelligence and data warehousing, Business Process Management and cloud computing.
Before founding Synechron, Husain worked for financial majors Merrill Lynch and Dun & Bradstreet for about six years.
Not going public yet
The self-funded company doesn’t see any requirement for going public in the short and medium term or to raise money from venture capital funds and private equity players.
“We would like to tap all the English-speaking markets in non-US geographies. At present, the US contributes 80 per cent to our revenues, followed by EU, India and Singapore.
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