Infosys wins 5-year deal from TNT Express

Mumbai: Infosys Ltd, India’s second largest software services exporter, said on Monday that it has won a five-year deal from global express delivery company TNT Express NV to simplify its technology applications.
Financial details of the deal were not disclosed.
At 2.01pm, shares of Infosys were trading down 0.39% at Rs.2,286 apiece, while the benchmark Sensex was down 0.07% at 29,340.12 points.

Sun Pharma buys GSK’s Opiates business in Australia

Mumbai: India’s largest drugmaker Sun Pharmaceutical Industries Ltd on Tuesday signed an agreement with GlaxoSmithKline Plc (GSK) to purchase its Opiates business in Australia for an undisclosed amount.
GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio products along with inventory will transfer to a subsidiary of Sun Pharma, the companies said in a joint statement.
The product portfolio consists of poppy-derived opiate raw materials that are primarily used in manufacture of analgesics for the treatment of moderate to severe pain.
All employees from both sites will also be offered employment by Sun Pharma with the Opiates business.
“Both Sun Pharma and GSK believe that the future of the Opiates business will be secured as part of Sun Pharma, a company with a global footprint,” the statement said.
The transaction closure is subject to customary closing conditions and requisite regulator and other approvals, and is expected to close by August 2015.

Cement Industry Should Grow by 20-25 Percent over the next three Decades – DIPP Secretary

New Delhi: Secretary, Department of Industrial Policy and Promotion(DIPP), Shri Amitabh Kant has said that cement industry has to grow 20-25 per cent annually over the next three decades to meet the requirement of a rapidly growing Indian economy. Delivering the inaugural address at the 53rd Annual Session of Cement Manufacturers’ Association(CMA), Shri Kant said that for a sustained high growth rates for the Indian economy, manufacturing has to grow by 13-14 per cent and cement has to be a major driver of India’s growth sector.
Responding to the flagging of some issues by CMA, Secretary DIPP said that he would convene a meeting with the officers of his Ministry, Ministry of Mines, Ministry of Environment and Department of Revenue to sort out the issues. Referring to the announcement made in the Budget 2015-16, Shri Kant said that huge emphasis has been laid on infrastructure and this will provide impetus to the cement industry.
Earlier, Shri O.P.Puranmalka, President, CMA, in his welcome address said that cement industry has grown at the rate of about 8 per cent in the first three quarters of the current financial year. However, to meet the level of cement demand arising out of expected increase in the growth rates, Government has to ensure adequate availability of land and consistent availability of major inputs like limestone, coal and adequate infrastructure like rail availability.
Later, Secretary DIPP released a booklet brought out by CMA on “Cement Concrete Road & Overlay Construction - Dos and Donts”.

Foreign Tourist Arrivals during the period January-December 2014 grow by 7.1%, as compared to a growth of 5.9% during January-December 2013

New Delhi: The Foreign Tourist Arrivals during the period January-December 2014 were 74.62 lakh with a growth of 7.1%, as compared to the Foreign Tourist Arrivals of 69.68 lakh with a growth of 5.9% during January-December 2013 over the corresponding period of 2012. Foreign Exchange Earnings from tourism in rupee terms during January-December 2014 were Rs.1,20,083 Crore with a growth of 11.5%, as compared to the Foreign Exchange Earnings of Rs.1,07,671 Crore with a growth of 14.0% during January- December 2013 over the corresponding period of 2012.
The Ministry of Tourism has taken various initiatives to boost the growth of tourism in India. These new initiatives of the Ministry of Tourism include Integrated Development of Theme-Based Tourist Circuits – Swadesh Darshan and the National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD). The Ministry has also launched a 24x7 Incredible India Toll Free Helpline for Tourists (Code – 1363/1800-111363).
The Government of India has introduced Tourist Visa on Arrival enabled with Electronic Travel Authorisation to facilitate foreign travellers visiting India. This facility is available to the nationals of 44 countries arriving at 9 airports in India (viz. Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Thiruvananthapuram, Kochi and Goa airports).
To create social awareness among the masses regarding their conduct and attitude towards tourists and to sensitize the stakeholders of the tourism industry, the Ministry of Tourism releases the Atithi Devo Bhava – Social Awareness Campaign. People in general are sensitized to preserve and protect the heritage and monuments of the country, including tourist places, for the generations to come. The campaign also strives to bring about a positive change in the outlook of the people. These campaigns are released in select Print, Electronic, Outdoor and Online Media.
This information was given by the Union Minister of State for Tourism (Independent Charge), Culture (Independent Charge) and Civil Aviation, Dr Mahesh Sharma, in a reply to unstarred question in Lok Sabha today.

World Bank boost to MSME sector; $500 million loan to MSME growth innovation project

Lucknow: The World Bank on Monday approved a $500 million loan for the MSME Growth Innovation and Inclusive Finance Project to improve access to finance for Micro, Small and Medium Enterprises (MSMEs) working in the manufacturing and services sector at an early stage.
In India, MSMEs account for more than 80 percent of total industrial enterprises, produce over 8000 value-added products and employ an estimated 60 million people. It contributes around 45 per cent to manufacturing output and about 40 percent to exports, both directly and indirectly. In addition, over 50 percent of MSMEs are rural enterprises and widely distributed across low-income states making them an important sector for promoting economic growth and poverty reduction.
However, lack of adequate finance is one of the biggest challenges facing the MSME sector. Financial institutions have limited their exposure to the sector due to a higher risk perception, information asymmetry, high transaction costs and the lack of collateral. The MSME census of 2006-07 estimated that about 87 percent of MSMEs did not have any access to finance and were self-financed. Credit towards micro and small enterprises represent only around 13-15 percent of formal financial institutions portfolio.
The project will support MSMEs [1] through direct financing by the Small Industries Development Bank of India or SIDBI, an apex financing institute, as also through Participating Financial Institutions or PFIs [2] , across three components. These include support to startup debt financing and risk capital as well as support to service and manufacturing sector financing models.
With eight million people entering the labor force every year, MSMEs have the potential to create many new, innovative jobs. However, for these ideas to take shape, MSMEs will need easier access to finance. This project will develop innovative products that address such constraints and help them achieve their true potential, said Onno Ruhl, World Bank Country Director in India.
The project will develop SIDBI s ability to scale up debt financing as India s startup ecosystem is currently one of the fastest growing in the world. In the last 3 years, India s start-ups have attracted some 300 venture capital/private equity and 225 angel investment deals worth over $2.3 billion and over 20 mergers and acquisitions worth $1 billion. It is currently the third largest startup base in the world with 3,100 startups (after the United States with 41,500 start-ups and the United Kingdom with 4,000). India has the potential to build around 2,500 highly scalable businesses that could generate revenues of $158 billion in the next 10 years.
The service sector enterprises continue to face challenges in accessing formal finance. In an attempt to address this issue SIDBI introduced four new products in 2013. These included: the Secured Business Loans for MSMEs, the Scheme for Asset Backed assistance to service sector entities, the Scheme for Facilitating Payments to MSMEs in Construction sector, and the Scheme for Asset Light assistance. Considering their potential to grow, this project will support scale up of similar products for service sector MSMEs.
The project will also support manufacturing MSMEs through financial products such as Loan Extension Services (LES) and cluster financing -- including women-led clusters. Particular focus will be to expand manufacturing activity in financially underserved areas, including low income states especially through refinancing, as banks and other PFIs have a deeper network in these states.
Access to formal financing is challenging as financial institutions are yet to develop appropriate risk assessment frameworks to assess enterprises that fall under the MSME sector. Traditional banking based on collateral lending does not cater well to these large, innovative and dynamic segments of the Indian economy. Thus, despite its contribution to GDP, its potential is not fully realized and many firms are unable to grow sufficiently. The introduction of customized products with innovative financing mechanisms will help unlock the market for lending to MSMEs at all stages of growth, said Niraj Verma, Lead Financial Sector Specialist and the Task Team Leader for the project.
The loan, from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 18 years.

Personal care products fast moving online

Mumbai: The change in strategy has been dramatic. Fast moving consumer goods (FMCG) companies who, till recently, felt that e-commerce would be restricted largely to categories such as mobile phones, tablets and laptops, as well as fashion and lifestyle products, have had to re-think in the last few months.
A recent study, by the search and technology major Google and consultancy firm Bain & Company, says that online sales of FMCG categories such as male grooming, beauty, personal care and infant care will constitute $5 billion (Rs 30,000 crore) by 2020.
While this number would mean only five per cent of the total FMCG sales, estimated to reach $100 billion (Rs 6 lakh-crore) by 2020, it is still significant.
Satyaki Ghosh, director, consumer products division, L'Oreal India, explains why. L'Oreal was one of the early movers online, with brands such as Maybelline. Ghosh says, "It is significant because what we are speaking of here, is the evolution of a new channel of distribution and one that has the potential to grow with the penetration of smartphones and the increased usage of Internet on mobile phones. People are doing a number of things online - browsing, chatting, transacting - implying companies can no longer ignore this medium. Secondly, digital has the potential to give you incremental reach, which is critical. There are so many more people who are able to see your catalogue of products, make a choice, and buy it. This opens up myriad possibilities for marketers."
Ghosh says that in the next five to seven years, e-commerce will constitute not five, but possibly 10 per cent of overall FMCG sales. "I say this because of the behaviour of consumers online. The traction of niche categories is higher because they are not widely available offline. For instance, luxury products such as high-end cosmetics and skincare products are likely to do better online than offline," he says.
The other categories that are taking off in FMCG are the ones where it is more convenient for the buyer to shop online. The Google-Bain study, for example, says that male grooming and infant care would see as much as 25 per cent of purchases on the Internet, while beauty would see about 8-10 per cent.
It also says that a third of the overall FMCG market in five years would be influenced by the digital medium, a point also made by Samardeep Subandh, chief sales officer, Marico. "While e-commerce will see exponential growth, there are some key trends. First, even though traditional channels will be a large part of sales, digital channels will have a large proportion of influence. Second, some categories will be disproportionately large in digital channels like infant care and beauty. Third, e-commerce will evolve in several formats such as multi-category, grocery, click and mortar and also brand's own websites. Finally, a lot of adoption will be driven though mobiles," he says.
In preparation, Marico and Godrej Consumer (Godrej) have set up dedicated teams for e-commerce websites. In some categories, these companies have already made decent headway. Marico's Subandh says, "In the case of Bio-Oils, a product imported and distributed by us in India, e-commerce already accounts for a tenth of sales." He adds that in the future, "Our endeavour would be to ramp up presence with products like Parachute Advanced and youth brands such as Livon and Set Wet in personal care and male grooming".
Vivek Gambhir, managing director, Godrej, says, "Right now, e-commerce is a minuscule portion of sales. We, however, expect that number to grow fast, particularly in mobile commerce (m-commerce). Our approach will be to partner with e-commerce marketplaces, rather than launch our own portals."
Paul Polman, CEO, Unilever, on a visit last month to India, said its domestic subsidiary Hindustan Unilever (HUL) was actively working in the e-commerce space, talking to websites to increase its presence on these platforms. "Three to four years ago, many would have said e-commerce wasn't for India. But surprisingly, it has grown very fast. Surely, we are going to be there. Will 5-10 per cent of business in big cities shift there? It is possible," he said.
Ghosh of L'Oreal says that over 1 per cent of sales of flagship brands - L'Oreal Paris and Garnier - comes from e-commerce. "For Maybelline, 3 per cent of its turnover comes from e-commerce and it looks promising. If there is one category that has grown the fastest, it is make-up. Both Maybelline's and L'Oreal's make-up ranges have done extremely. So, has Garnier for Men. We are also in the process of taking our luxury beauty products (Kiehl's, Lancome, Giorgio Armani, YvesSaintLaurent) and active cosmetics (Vichy, La Roche-Posay) online," he says.
New entrants such as Japanese cosmetics major, Shiseido, have been quick to migrate online. "While it is early days yet to indicate sales numbers, we have received a good response to the ZA range online. Offline, we are available in only three cities - Mumbai, Delhi/NCR and Bengaluru. But online, our consumer base is broader. That makes a lot of difference to new brands such as ours," says Salman Bukhari, marketing director, Shiseido India.
The Japanese major proposes to launch its ZA make-up range in the future for which it is expected to tap the e-commerce space aggressively.

Insurance sector to reach $250 billion in 10 years: Report

Hyderabad: India's insurance sector is expected to quadruple to about $250 billion over the next decade from around $60 billion now, according to a report by the Confederation of Indian Industry (CII).
The vision report, prepared by the trade body in partnership with consultancy firm McKinsey & Co. and unveiled by the Insurance Regulatory and Development Authority ( Irda) chairman TS Vijayan in Hyderabad on Thursday , recommends an inclusive and progressive growth strategy for the industry . Such a strategy would enable the Indian life insurance industry to report 12% compounded annual growth rate (CAGR) over the next 10 years to reach $160175 billion from around $46 billion now, the report said. The non-life or general insurance part of the industry is estimated to see 22 per cent CAGR during this period, expanding to $80 billion from around $13 billion now, it said.
Vijayan said the regulator has allowed foreign reinsurance firms to open branches in India.He also announced the regulator's decision on allowing insurance firms to recruit agents on their own, instead of appointing them from those who have qualified in an Irda-organised examination. Vijayan said the upcoming insurance Ordinance has several measures that would support growth. "Our priority would be to protect the interests of the policyholders and we need to ensure the satisfaction of the customer for which we are bringing certain changes in the new Act," he said, adding that the sec . 50,000 crore of fresh capital to tor needs at least ` achieve coverage of 6% from the existing 4 per cent.The life insurance segment would require more capital over general insurance, he said.
Analjit Singh, head of the CII national committee on insurance and pensions and chairman of Max India, said the industry has the potential to grow three to five times in size over the next decade. "For this to happen, policy action by the regulator, collaboration between players, individual player's push to develop distribution and technical capabilities would be critical," he said.

Go green: Govt targets 175,000 mw clean energy by 2022

Bengaluru: In order to generate more electricity from clean energy sources, the government announced a massive renewable power production target of 175,000 megawatt (mw) by 2022.
The revised total target, which includes 100,000 mw from solar power, 60,000 mw from wind energy, 10,000 mw from biomass energy and 5,000 mw from small hydro power projects, has excited the industry.
At present, renewable energy contributes about 6.5% to the electricity mix. It is proposed that this would be taken to about 12% in the next three years.
Electrification of the remaining 20,000 villages through means such as off-grid solar power generation, was also good news for the renewable energy sector.
The cess on coal was doubled to Rs 200 per tonne from Rs 100 per tonne, which will boost renewable energy financing. The cess is collected as National Clean Energy Fund and is disbursed for renewable energy-based initiatives and power projects.
"The budget has further reinforced a positive sentiment already prevailing among the various stakeholders in the power sector," said Madhusudan M Chakrapani, chief technology officer, RE Connect Energy Solutions. "Most significant growth will be seen in solar sector capacity, which will increase from 3.5 gigawatt (gw) today to 100 gw in seven years, and will help catalyse the renewable industry further. Additional depreciation of 20% allowed on distributed power generation (taking it to 100% depreciation in the first year) will also benefit rooftop solar deployment."
However, industry officials say lack of clarity on fund allocation is a dampener.
Policy measures for achievement of the highly-stretched goal of renewable energy have not been detailed out, said Manish Aggarwal, head of energy and natural resources, KPMG.
"The general emphasis on renewable energy and revised target of 175 gw is not adequate to make capacity creation happen in reality," said Anish De, partner, KPMG. "Unlike rail and roads, tax-free bonds have not been specifically proposed for this sector. It would have been better to propose specific allocations and measures, especially on availability of low-cost funds for the renewable energy sector."

Investment in infrastructure to go up by Rs 70,000 crore in 2015-16

New Delhi: The Union Finance Minister Shri Arun Jaitley has proposed an increase in investment in infrastructure by Rs. 70,000 crore in the year 2015-16 over the year 2014-15 from the Centre's funds and resources of CPSEs. Presenting the General Budget 2015-16 in the Lok Sabha here today, the Finance Minister stated that the present state of infrastructure does not match the growth ambitions. Hence he has increased outlay on both the roads and the gross budgetary support to the Railways by Rs. 14,031 crore and Rs. 10,050 crores. The CAPEX of the public sector units is expected to be Rs.3,17,889 crores, an increase of approx. Rs. 80,844 crores over RE 2014-15.

India granted 5,299 patents during April-January in FY15

New Delhi: India has granted as many as 5,299 patents during the April-January period of FY15, according to Ms Nirmala Sitharaman, Minister of State with Independent Charge for Commerce and Industry, Government of India.
The country has granted 4,225, 4,126 and 4,381 patents in 2013-14, 2012-13 and 2011-12, respectively.
"The patents are granted after following the procedures as per the Patents Act 1970...Any Indian company aggrieved by the grant of this patent can also oppose the grant of patent," said Ms Sitharaman.