New Delhi: The domestic hospitality sector expects 52,000 new hotel rooms to be added in five years (2013-17), says a survey by real estate consultancy Cushman & Wakefield. This will mean a rise of over 65 per cent in total hotel inventory.
Despite a slower response, the sector is expecting better demand in the coming years on account of improved global economic conditions, the survey says.
The National Capital Region (NCR) is expected to contribute around one-third to the total expected hotel rooms supply in the period. Kolkata at 105 per cent will witness the highest percentage increase in inventory by adding 3,813 rooms by 2017, it said.
Pune at 41 per cent will add the lowest number of rooms (2,853) to its existing 6,970.
Many hotel projects, which were delayed in the last two years, are also expected to get completed. Akshay Kulkarni, Regional Director – Hospitality, South and Southeast Asia, Cushman & Wakefield, said: “Even while India is considered to be an attractive market for both leisure and business travel, there are some inherent deficiencies due to which hospitality projects have hitherto taken long to come up including aspects like funding and regulatory issues, which have either delayed or in some cases stalled projects.”
Mid-scale hotels
The survey added mid-scale hotels are expected to see the highest supply of 18,500 units, followed by luxury which is estimated at 10,300 units, contribute 36 per cent and 20 per cent, respectively, to the total expected supply.
Budget (9,000 units), upscale (6,800 units) and upper upscale (6,900 units) are estimated to be contributing approximately 44 per cent to the total supply in the next five years.
Success in my Habit
Monday, February 3, 2014
India and Morocco agree to enhance bilateral economic cooperation
New Delhi: India and Morocco have agreed to mutually enhance bilateral economic cooperation. The two countries also identified new areas of collaboration such as pharmaceuticals, agriculture, automobiles and renewable energy. The decision was taken during a meeting between Mr Salman Khurshid, External Affairs Minister, Government of India and Mr Salaheddine Mezouar, Minister of Foreign Affairs, Morocco. They also exchanged views on regional and global issues of common concern, besides aiming to hold Foreign Office Consultations later this year.
Mr Khurshid visited Morocco as part of his three-nation tour of natural resources rich North African countries. He will also visit Tunisia and Sudan to boost India’s ‘Look Middle East’ policy. During his visit, Mr Khurshid also met Mr Abdelilah Benkirane, Prime Minister of Morocco.
“India and Morocco have deep-rooted historical links from the days of the famous Moroccan traveller Ibn Batuta in the 14th century. Since the establishment of diplomatic relations in 1957, these ties have become multifaceted and stronger. “The focus of my visit is on intensifying our growing engagement,” added Mr Khurshid.
India and Morocco explored ways and means of diversifying their phosphate-centric economic and commercial relations which Mr Khurshid highlighted saying ‘have an immense untapped potential’. A lot of phosphoric acid and rock phosphate from Morocco are sourced to India for use in the fertiliser industry which helps India’s agriculture sector. In addition, two memorandum of understanding (MoUs) relating to cooperation in Marine Fisheries as well as in the field of Environment Cooperation were also signed during the minister’s visit.
“We have proposed the setting up of an Information and Communication Technology (ICT) centre in Morocco, and we are happy that your government has accepted this proposal. We are working to see that this project is implemented at the earliest”. Also, “India will be pleased to offer additional slots and scholarships to Morocco for training and higher education under various schemes of the Government of India,” said Mr Khurshid.
Furthermore, Mr Khurshid praised Morocco for its economic growth and rights record and added that “We deeply appreciate Morocco’s support to India in the United Nations and other multilateral fora, including in particular for the expression of support for a permanent seat for India in a reformed and expanded UN Security Council”.
While extending an invitation to Mr Mezouar to visit India, the Minister said India would be happy to share its developmental experience and expertise with friendly developing countries like Morocco.
Mr Khurshid visited Morocco as part of his three-nation tour of natural resources rich North African countries. He will also visit Tunisia and Sudan to boost India’s ‘Look Middle East’ policy. During his visit, Mr Khurshid also met Mr Abdelilah Benkirane, Prime Minister of Morocco.
“India and Morocco have deep-rooted historical links from the days of the famous Moroccan traveller Ibn Batuta in the 14th century. Since the establishment of diplomatic relations in 1957, these ties have become multifaceted and stronger. “The focus of my visit is on intensifying our growing engagement,” added Mr Khurshid.
India and Morocco explored ways and means of diversifying their phosphate-centric economic and commercial relations which Mr Khurshid highlighted saying ‘have an immense untapped potential’. A lot of phosphoric acid and rock phosphate from Morocco are sourced to India for use in the fertiliser industry which helps India’s agriculture sector. In addition, two memorandum of understanding (MoUs) relating to cooperation in Marine Fisheries as well as in the field of Environment Cooperation were also signed during the minister’s visit.
“We have proposed the setting up of an Information and Communication Technology (ICT) centre in Morocco, and we are happy that your government has accepted this proposal. We are working to see that this project is implemented at the earliest”. Also, “India will be pleased to offer additional slots and scholarships to Morocco for training and higher education under various schemes of the Government of India,” said Mr Khurshid.
Furthermore, Mr Khurshid praised Morocco for its economic growth and rights record and added that “We deeply appreciate Morocco’s support to India in the United Nations and other multilateral fora, including in particular for the expression of support for a permanent seat for India in a reformed and expanded UN Security Council”.
While extending an invitation to Mr Mezouar to visit India, the Minister said India would be happy to share its developmental experience and expertise with friendly developing countries like Morocco.
Saturday, February 1, 2014
Greenko Group commissions 50-MW wind farm in AP
Hyderabad: Renewable energy company Greenko Group has commissioned a 50-MW wind farm at Balavenkatapuram in Anantapur district of Andhra Pradesh, taking its installed generating portfolio to 476 MW.
This reflects an increase of 54 per cent in generation capacity since April 2014.
The Hyderabad-based company, listed on the AIM of London Stock Exchange, is steadily building its portfolio of renewable energy assets, both setting them on its own and also making a series of acquisitions in the hydel generation sector.
The Balavenkatapuram Phase-2 is the fifth wind farm Greenko has commissioned this financial year and brings the total wind generation capacity of the company to 233 MW. The Phase 2 wind farm was completed ahead of schedule and is expected to ram up to full power curve within weeks.
Anil Chalamalasetty, Chief Executive Officer of Greenko, said, “The company’s strategy of building large wind farms in a phased manner, using the latest low speed turbine technology connected to the high voltage transmission grid, is expected to deliver predictable and profitable growth.”
“We expect to more than double our generation capacity this financial year to 600 MW and are firmly on track to meet our 2015 target of 1,000 MW,” he said.
This project was built with an outlay of €43 million using Gamesa’s G97 turbines. This has capacity to deliver better performance in an average year.
This project has a 25-year power purchase agreement with Andhra Pradesh and has access to generation-based incentives.
The Grid connection for the site’s full capacity of 200 MW was completed in October 2013, ahead of Phase 1 commissioning.
The Phase 3 of Balavenkatapuram of another 50 MW is under construction and is expected to be ready for operation before the monsoon season in July.
This reflects an increase of 54 per cent in generation capacity since April 2014.
The Hyderabad-based company, listed on the AIM of London Stock Exchange, is steadily building its portfolio of renewable energy assets, both setting them on its own and also making a series of acquisitions in the hydel generation sector.
The Balavenkatapuram Phase-2 is the fifth wind farm Greenko has commissioned this financial year and brings the total wind generation capacity of the company to 233 MW. The Phase 2 wind farm was completed ahead of schedule and is expected to ram up to full power curve within weeks.
Anil Chalamalasetty, Chief Executive Officer of Greenko, said, “The company’s strategy of building large wind farms in a phased manner, using the latest low speed turbine technology connected to the high voltage transmission grid, is expected to deliver predictable and profitable growth.”
“We expect to more than double our generation capacity this financial year to 600 MW and are firmly on track to meet our 2015 target of 1,000 MW,” he said.
This project was built with an outlay of €43 million using Gamesa’s G97 turbines. This has capacity to deliver better performance in an average year.
This project has a 25-year power purchase agreement with Andhra Pradesh and has access to generation-based incentives.
The Grid connection for the site’s full capacity of 200 MW was completed in October 2013, ahead of Phase 1 commissioning.
The Phase 3 of Balavenkatapuram of another 50 MW is under construction and is expected to be ready for operation before the monsoon season in July.
Auto Expo to unveil 70 new passenger vehicles
New Delhi: The 12th edition of the India Motor Show, scheduled between February 5 and 11, will see the unveiling of around 70 new passenger vehicles, two-wheelers and commercial vehicles making it the largest exhibition in India's automotive history. Of this, 26 are global unveilings.
As many as 55 vehicle manufacturers and 1,100 component suppliers are expected to participate in the show. To accommodate more participants, the display size at Greater Noida has been enhanced by 30 per cent to 60,000 sq mts.
The week-long event is expected to be a much more polished affair this time with the organisers — Society of Indian Automobile Manufacturers, Confederation of Indian Industry and Auto Components Manufacturers Association — taking several measures to ensure the event is comparable to global standards and is without the crowd mismanagement seen in the previous editions.
The number of visitors expected at the show will be lower this time, with the exhibition being open to the general public only for five days starting February 7. Organisers expect 550,000 general visitors this year, compared to 700,000 recorded in the 2012 edition.
The lower footfalls are largely on account of the Auto Expo being held in two parts. While the main motor show will be held at Greater Noida's Expo Mart, the auto components show will be held at Pragati Maidan in Delhi.
"We expect better flow of people. Overall footfall will be less also because this time general visitors get only five days, as compared to seven days in the previous edition," said Vikram Kirloskar, president of Siam and vice-chairman of Toyota Kirloskar Motor.
Sugato Sen, deputy director-general of Siam, added: "We want the finesse of a global show. The cost difference is huge for us because of additional shuttle services, hiring of private security and completely air-conditioned halls, but we expect a much better experience."
At a time when sales are falling, the auto industry hopes the excitement around the Auto Expo will lift consumer sentiments. Passenger vehicle sales have declined by six per cent to around 1.8 million units in the first nine months of this financial year.
As many as 55 vehicle manufacturers and 1,100 component suppliers are expected to participate in the show. To accommodate more participants, the display size at Greater Noida has been enhanced by 30 per cent to 60,000 sq mts.
The week-long event is expected to be a much more polished affair this time with the organisers — Society of Indian Automobile Manufacturers, Confederation of Indian Industry and Auto Components Manufacturers Association — taking several measures to ensure the event is comparable to global standards and is without the crowd mismanagement seen in the previous editions.
The number of visitors expected at the show will be lower this time, with the exhibition being open to the general public only for five days starting February 7. Organisers expect 550,000 general visitors this year, compared to 700,000 recorded in the 2012 edition.
The lower footfalls are largely on account of the Auto Expo being held in two parts. While the main motor show will be held at Greater Noida's Expo Mart, the auto components show will be held at Pragati Maidan in Delhi.
"We expect better flow of people. Overall footfall will be less also because this time general visitors get only five days, as compared to seven days in the previous edition," said Vikram Kirloskar, president of Siam and vice-chairman of Toyota Kirloskar Motor.
Sugato Sen, deputy director-general of Siam, added: "We want the finesse of a global show. The cost difference is huge for us because of additional shuttle services, hiring of private security and completely air-conditioned halls, but we expect a much better experience."
At a time when sales are falling, the auto industry hopes the excitement around the Auto Expo will lift consumer sentiments. Passenger vehicle sales have declined by six per cent to around 1.8 million units in the first nine months of this financial year.
Cadila Healthcare gets US FDA nod for arthritis drug
Ahmedabad: Ahmedabad-based Cadila Healthcare (Zydus Cadila) today announced that the company has received the final approval from the US drugs regulator, US Food and Drug Administration (USFDA) to market a drug useful for treatment arthritis.
In a statement on Thursday, Cadila informed, “ The company has received final approval from the US drugs regulator US Food and Drug Administration (USFDA) to market Etodolac Extended-release Tablets USP, 400 mg, 500 mg, and 600 mg. The drug is prescribed for treatment of juvenile arthritis, rheumatoid arthritis and osteoarthritis.”
The group now has 88 approvals and has so far filed 216 ANDAs since the commencement of filing process in FY 2003-04, it added.
Cadila Healthcare shares ended almost flat on the stock exchanges on Thursday. The stock ended at Rs 809.15, down by 0.25 per cent on the BSE.
In a statement on Thursday, Cadila informed, “ The company has received final approval from the US drugs regulator US Food and Drug Administration (USFDA) to market Etodolac Extended-release Tablets USP, 400 mg, 500 mg, and 600 mg. The drug is prescribed for treatment of juvenile arthritis, rheumatoid arthritis and osteoarthritis.”
The group now has 88 approvals and has so far filed 216 ANDAs since the commencement of filing process in FY 2003-04, it added.
Cadila Healthcare shares ended almost flat on the stock exchanges on Thursday. The stock ended at Rs 809.15, down by 0.25 per cent on the BSE.
India set to become top automotive R&D hub
New Delhi: India has become an R&D hotbed and in keeping with the global R&D trend of last year, the country is now a preferred destination for automotive R&D, according to a study on the Global Top 500 R&D spenders done by Zinnov, a globalisation advisory and market expansion firm.
“With strong potential for growth in areas such as engineering analytics and significant talent located in the ‘Deccan Triangle’ region – encompassing Pune, Bangalore and Hyderabad – India is poised to become an auto R&D hub,” the study observed.
Increasing headcount
In particular, the automotive sector with its focus on creating differentiated offerings for global markets and appetite for investment, is an attractive industry. However, while cost arbitrage continues to be a key driver for R&D globalisation, there is a pressing need for Indian MNC R&D companies to take on big technology bets to drive innovation from here, according to Zinnov.
The study says that close to 50 per cent of the G500 companies present have over 10 per cent of the global R&D headcount in India. Zinnov announced the results of the study on the Global Top 500 R&D spenders, showing the Automotive industry’s leadership across sectors in R&D spend in 2013. It said that the Auto industry spent $110 billion globally last year, the highest among the Top 500 R&D spenders in the world.
Further, the automotive industry was also among the top three spenders in each region, across North America, Europe, APAC and Japan, with the total spend in the sector rising by 5 per cent over the previous year.
Who’s in, who’s out
India's position is highlighted by the fact that 874 MNCs have set up 1,031 centres and 45 per cent of the top 500 global R&D spenders have a presence here. Of the auto R&D centres located in India, the highest – 26 – are headquartered in the EU. In fact, BMW is the only automotive company among the Top 50 R&D spenders that hasn’t yet entered India for R&D. And, out of the 26 companies whose global R&D spend has increased by over 20 per cent during the last year, only two in the auto sector - Porsche and Rolls-Royce – do not have an India presence. In fact, in the last five years, the automotive companies have shown growth leading to R&D intensity of almost of 6-7 per cent.
Tracking growth nations
The released Zinnov study brings to light that within the automotive sector, Japan contributed to 40 per cent, followed by 37 per cent from Europe, 13 per cent from North America and 12 per cent from the Asia Pacific region. Volkswagen was the highest R&D spender demonstrating a 32 per cent increase over last year. Bosch increased its spend by 14 per cent.
Interestingly, China has the highest number of auto R&D centres, with 55. In comparison, India has 30 and the Bay Area in the US has 20. According to the report, the Top 500 R&D spenders contribute over USD 577 billion with the Top 100 R&D spenders alone contributing almost 66 per cent to the global R&D spend. 40 per cent of the overall R&D spend is from organisations headquartered in North America, followed by 34 per cent from Europe, 18 per cent from Japan, and 7 per cent from Asia-Pacific.
“With strong potential for growth in areas such as engineering analytics and significant talent located in the ‘Deccan Triangle’ region – encompassing Pune, Bangalore and Hyderabad – India is poised to become an auto R&D hub,” the study observed.
Increasing headcount
In particular, the automotive sector with its focus on creating differentiated offerings for global markets and appetite for investment, is an attractive industry. However, while cost arbitrage continues to be a key driver for R&D globalisation, there is a pressing need for Indian MNC R&D companies to take on big technology bets to drive innovation from here, according to Zinnov.
The study says that close to 50 per cent of the G500 companies present have over 10 per cent of the global R&D headcount in India. Zinnov announced the results of the study on the Global Top 500 R&D spenders, showing the Automotive industry’s leadership across sectors in R&D spend in 2013. It said that the Auto industry spent $110 billion globally last year, the highest among the Top 500 R&D spenders in the world.
Further, the automotive industry was also among the top three spenders in each region, across North America, Europe, APAC and Japan, with the total spend in the sector rising by 5 per cent over the previous year.
Who’s in, who’s out
India's position is highlighted by the fact that 874 MNCs have set up 1,031 centres and 45 per cent of the top 500 global R&D spenders have a presence here. Of the auto R&D centres located in India, the highest – 26 – are headquartered in the EU. In fact, BMW is the only automotive company among the Top 50 R&D spenders that hasn’t yet entered India for R&D. And, out of the 26 companies whose global R&D spend has increased by over 20 per cent during the last year, only two in the auto sector - Porsche and Rolls-Royce – do not have an India presence. In fact, in the last five years, the automotive companies have shown growth leading to R&D intensity of almost of 6-7 per cent.
Tracking growth nations
The released Zinnov study brings to light that within the automotive sector, Japan contributed to 40 per cent, followed by 37 per cent from Europe, 13 per cent from North America and 12 per cent from the Asia Pacific region. Volkswagen was the highest R&D spender demonstrating a 32 per cent increase over last year. Bosch increased its spend by 14 per cent.
Interestingly, China has the highest number of auto R&D centres, with 55. In comparison, India has 30 and the Bay Area in the US has 20. According to the report, the Top 500 R&D spenders contribute over USD 577 billion with the Top 100 R&D spenders alone contributing almost 66 per cent to the global R&D spend. 40 per cent of the overall R&D spend is from organisations headquartered in North America, followed by 34 per cent from Europe, 18 per cent from Japan, and 7 per cent from Asia-Pacific.
India, Fiji sign pact to avoid double taxation
New Delhi: This is the first time both countries are entering into a DTAA.
The pact also includes certain specific provisions to prevent treaty abuse.
The agreement was signed by Finance Minister P Chidambaram on behalf of the Indian Government and Aiyaz Sayed-Khaiyum, Attorney General and Minister of Justice, Anti-Corruption, Tourism, Industry and Trade on behalf of the Fiji Government.
According to the pact, business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state.
Also, dividends, interest, royalty and fees for technical or professional services will be taxed both in the country of residence and in the country of source.
The pact also includes certain specific provisions to prevent treaty abuse.
The agreement was signed by Finance Minister P Chidambaram on behalf of the Indian Government and Aiyaz Sayed-Khaiyum, Attorney General and Minister of Justice, Anti-Corruption, Tourism, Industry and Trade on behalf of the Fiji Government.
According to the pact, business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state.
Also, dividends, interest, royalty and fees for technical or professional services will be taxed both in the country of residence and in the country of source.
Tata Opportunities Fund to invest $60 million in Varroc group
Mumbai: Local private equity fund Tata Opportunities Fund will purchase a significant minority stake in Aurangabad-based auto component maker Varroc group for $60 million, or Rs 272 crore, two people with direct knowledge of the development said.
India's third-largest auto components maker will use the money to build new products and to expand its presence in Europe and emerging markets. "Tata Opportunities Fund is investing $60 million in Varroc for a substantial minority stake," an investment banker with knowledge of the development said. According to him, the company with sales of more than Rs 800 crore is also looking at widening its customer base to Europe and other emerging markets.
Promoted by first generation entrepreneur Tarang Jain, Varroc began selling auto components to Bajaj Group in late 90s and later to other vehicle makers. "Based on further capital requirement, the company might look at another round of fund raising in future," another person with knowledge of company's plans said.
Varroc group managing director Tarang Jain and Tata Opportunities Fund spokesman Rishaad Bilimoria didn't respond to email questionnaire.
Varroc had grown through acquisitions in the global market. In 2012, it acquired US-based Visteon Lighting for $100 million, helping it to ramp up its presence in Mexico and Chezch Republic.
"Some capital will go towards expanding the Visteon business," the banker quoted above said. Visteon supplies products to global automobile majors such as Ford, General Motors, Volkswagen and Jaguar Land Rover.
Private equity and strategic investors have started investing in auto component makers as slowing economy offer them cheaper assets. Last week, ET reported Japanese auto major Mitsubishi's plans to invest in Comstar, a South India-based company. PE fund Actis bought roughly 12 per cent stake from Standard Chartered Private Equity in Endurance Group for $71 million. Low labour costs, availability of skilled labour and high quality products among Indian vendors have spurred the growth of auto component exports from India.
India's third-largest auto components maker will use the money to build new products and to expand its presence in Europe and emerging markets. "Tata Opportunities Fund is investing $60 million in Varroc for a substantial minority stake," an investment banker with knowledge of the development said. According to him, the company with sales of more than Rs 800 crore is also looking at widening its customer base to Europe and other emerging markets.
Promoted by first generation entrepreneur Tarang Jain, Varroc began selling auto components to Bajaj Group in late 90s and later to other vehicle makers. "Based on further capital requirement, the company might look at another round of fund raising in future," another person with knowledge of company's plans said.
Varroc group managing director Tarang Jain and Tata Opportunities Fund spokesman Rishaad Bilimoria didn't respond to email questionnaire.
Varroc had grown through acquisitions in the global market. In 2012, it acquired US-based Visteon Lighting for $100 million, helping it to ramp up its presence in Mexico and Chezch Republic.
"Some capital will go towards expanding the Visteon business," the banker quoted above said. Visteon supplies products to global automobile majors such as Ford, General Motors, Volkswagen and Jaguar Land Rover.
Private equity and strategic investors have started investing in auto component makers as slowing economy offer them cheaper assets. Last week, ET reported Japanese auto major Mitsubishi's plans to invest in Comstar, a South India-based company. PE fund Actis bought roughly 12 per cent stake from Standard Chartered Private Equity in Endurance Group for $71 million. Low labour costs, availability of skilled labour and high quality products among Indian vendors have spurred the growth of auto component exports from India.
BHEL, SECI, HSL, POWERGRID, SJVN and REIL sign MoU for establishing a 4,000 MW UMSPP in Rajasthan
New Delhi: An Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW will be set up in Rajasthan near Jaipur, close to Sambhar Lake. Significantly, with the commissioning of this plant and commercial utilisation of the harvested energy therein, this would become the largest single location solar electricity generation project in the world.
A Joint Venture Company (JVC) will develop the Solar Power Project with equity participation from Bharat Heavy Electricals Limited (26%), Solar Energy Corporation of India (23%), Hindustan Salts Limited (16%), POWERGRID (16%), Satluj Jal Vidyut Nigam Limited (16%) and Rajasthan Electronics and Instruments Limited (3%). The project set up on land provided by SSL will have equipment supplied by BHEL, power evacuation by POWERGRID, sale of electricity by SECI, O&M by REIL and project management by SJVNL.
To this effect, a Memorandum of Understanding (MoU) was signed here today among the six companies in the presence of Shri Praful Patel, Minister of Heavy Industries and Public Enterprises, Dr. Farooq Abdullah, Minister of New and Renewable Energy and other dignitaries. Shri B. Prasada Rao, CMD, BHEL; Shri Rajendra Nimde, MD, SECI; Shri R.K. Tandon, CMD, SSL; Shri R.N. Nayak, CMD, Powergrid; Shri R.P. Singh, CMD, SJVN and Shri A.K. Jain, CMD, REIL, signed the MoU.
The plant will be set up in two phases over a period of 7 years with Phase-I comprising 1,000 MW and the balance 3,000 MW in subsequent phases. The JVC will be incorporated as a public limited company under DHI and will have at its registered office in Delhi/NCR.
A Joint Venture Company (JVC) will develop the Solar Power Project with equity participation from Bharat Heavy Electricals Limited (26%), Solar Energy Corporation of India (23%), Hindustan Salts Limited (16%), POWERGRID (16%), Satluj Jal Vidyut Nigam Limited (16%) and Rajasthan Electronics and Instruments Limited (3%). The project set up on land provided by SSL will have equipment supplied by BHEL, power evacuation by POWERGRID, sale of electricity by SECI, O&M by REIL and project management by SJVNL.
To this effect, a Memorandum of Understanding (MoU) was signed here today among the six companies in the presence of Shri Praful Patel, Minister of Heavy Industries and Public Enterprises, Dr. Farooq Abdullah, Minister of New and Renewable Energy and other dignitaries. Shri B. Prasada Rao, CMD, BHEL; Shri Rajendra Nimde, MD, SECI; Shri R.K. Tandon, CMD, SSL; Shri R.N. Nayak, CMD, Powergrid; Shri R.P. Singh, CMD, SJVN and Shri A.K. Jain, CMD, REIL, signed the MoU.
The plant will be set up in two phases over a period of 7 years with Phase-I comprising 1,000 MW and the balance 3,000 MW in subsequent phases. The JVC will be incorporated as a public limited company under DHI and will have at its registered office in Delhi/NCR.
GVK Bio acquires US research firm
Hyderabad: GVK Bio has acquired Aragen Bioscience Inc., a US-based pre-clinical contract research organisation (CRO), for an undisclosed amount.
This is the first overseas acquisition by the Hyderabad-based company, which offers specialised services to global customers in small-molecule discovery and development as well as contract research.
The acquisition will scale up its expertise to large-molecule research and development services and biotech products.
“We have taken a majority stake of 65 per cent. The remaining 35 per cent will be acquired over the next two years. An agreement to this effect has been signed between the two companies,” said CEO Manni Kantipudi. He did not disclose the financial details.
GVK Bio will acquire the capital stock of the privately-held US company. Aragen Bioscience is based in San Francisco. It has about 50 employees, Kantipudi told Business Line.
The company took the buyout route as building similar capabilities would take at least 5-7 years. “The synergies will immediately enable us to offer services to large bio-pharma companies. At least 150 of our clients are bio-pharma firms. Similarly, of Aragen’s 70 customers, at least 20 are into bio-pharma,” he said.
The deal enables GVK Bio, an unlisted entity with 350 customers, to expand and achieve a significant US presence. At present, it has a small sales and marketing presence in the US.
“Aragen’s scientific expertise in large-molecule R&D services combined with GVK Bio’s scale, resources, and global reach, will create significant synergies for both companies,” said Rick Srigley, President and CEO of Aragen.
This is the first overseas acquisition by the Hyderabad-based company, which offers specialised services to global customers in small-molecule discovery and development as well as contract research.
The acquisition will scale up its expertise to large-molecule research and development services and biotech products.
“We have taken a majority stake of 65 per cent. The remaining 35 per cent will be acquired over the next two years. An agreement to this effect has been signed between the two companies,” said CEO Manni Kantipudi. He did not disclose the financial details.
GVK Bio will acquire the capital stock of the privately-held US company. Aragen Bioscience is based in San Francisco. It has about 50 employees, Kantipudi told Business Line.
The company took the buyout route as building similar capabilities would take at least 5-7 years. “The synergies will immediately enable us to offer services to large bio-pharma companies. At least 150 of our clients are bio-pharma firms. Similarly, of Aragen’s 70 customers, at least 20 are into bio-pharma,” he said.
The deal enables GVK Bio, an unlisted entity with 350 customers, to expand and achieve a significant US presence. At present, it has a small sales and marketing presence in the US.
“Aragen’s scientific expertise in large-molecule R&D services combined with GVK Bio’s scale, resources, and global reach, will create significant synergies for both companies,” said Rick Srigley, President and CEO of Aragen.
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