Honda inaugurates second unit

New Delhi: Japanese auto major Honda Motor Company (HMC) today inaugurated its second manufacturing facility for passenger vehicles at Tapukara (Alwar, Rajasthan) doubling annual capacity to 240,000 units per annum.

The unit, developed at an investment of Rs 3,520 crore, will initially produce 60,000 cars per annum on a single-shift basis. A second shift would be commissioned based on market demand.

Hironori Kanayama, president and chief executive officer, Honda Cars India (HCI) said, “With the inauguration of this second plant, we have doubled our production capacity in India. This plant is significant as it will help us realise the target of selling 300,000 units in the country by 2016-17.”

The company would utilise the 450-acre facility to produce entry-level sedan Amaze and would later decide on producing any other models, depending on market demand. "We will produce both petrol and diesel variants of Amaze here.

The production ratio of petrol and diesel variants would depend upon the market demand," informed Kanayama, adding that the production of compact sedan would also continue at its Greater Noida facility.

In order to reduce waiting period of the Amaze, Honda Cars had commenced a third shift at its Greater Noida facility in November last year. The waiting period on the car has since come down to around three weeks.

Rajasthan Chief Minister Vasundhara Raje inaugurated the unit in Tapukara today, which currently employs around 3200 workers.

Driven by demand for the Amaze and newly launched flagship sedan City, Honda has bucked industry trend to post a growth of around 78 per cent and sold over 100,000 units till January this financial year. The company had sold 73,000 units in 2012-13.

To continue the growth momentum, the company has plans to launch two more models in the coming year. Kanayama said: "We will launch Mobilio (multi purpose vehicle) by the second quarter of next fiscal and Jazz before the end of the next financial year."

Honda Motor Company Managing Officer Yoshiyuki Matsumoto said the company has an annual target of 1.2 millio vehicles in the Asia Oceania region by March 2017. "Honda Cars India, which is part of the region, will contribute 25 per cent of the region's sales by 2017, by selling 300,000 cars per annum," he added.

The Tapukara unit, which started producing engine components in the first phase way back in 2008, will play a substantial role in HCIL’s long term growth, Matsumoto said.

He added that over the next few years the plant would become a major hub for exporting both diesel and petrol engine components and other parts to Honda facilities in Southeast Asia. "HCIL’s targeted export turnover for 2013-14 is about Rs 350 crore. This will grow significantly as HCIL expands its exports," he added.

PE investments in realty sector rise 13% at Rs. 7,000 crore in 2013

Hyderabad: Private equity investments in the country’s real estate sector during 2013 registered a 13-per cent increase Rs. 7,000 crore ($1.2 billion), over the Rs. 6,200 crore ($1.1 billion) done in 2012, according to a report by global real estate consultancy Cushman & Wakefield.

The increase was primarily due to rising investments in residential assets and other sectors such as retail and hospitality.

While the number of deals increased to 40 in 2013 compared to 34 in 2012, the average deal size declined marginally, and was approximately Rs. 175 crore.

Overall, PE investments across sectors have increased by 11 per cent, from $9.49 billion in 2012 to $10.5 billion in 2013.

Raising capital
Given the difficult economic conditions, developers are finding it difficult to raise capital through traditional sources and are opting for alternative means , the report states.

Sanjay Dutt, Executive Managing Director (South Asia), Cushman & Wakefield said: “A number of large global investors, including a number of sovereign funds, have taken the first move by partnering with successful local investors and developers for investing in the Indian real estate market. This is expected to result in high transaction activity, especially in income yielding commercial office assets during 2014.”

The total Foreign Direct Investment inflow in construction development for the third quarter of 2013 was Rs. 3,200 crore, which is the highest quarterly investment since Q3 of 2009.

FDI inflow for the first three quarters of 2013 in construction development was Rs. 5,500 crore, a 25 per cent increase from the same period in 2012.

Bangalore continued to witness the highest level of transaction activity in 2013 with overall investments of approximately Rs. 2,200 crore, though it declined by 33 per cent from 2012.

Both Pune and NCR witnessed an increase in transaction volume in 2013.

Mumbai witnessed a decline of approximately 15 per cent in investments for 2013 to Rs. 1,100 crore. However, investment activity in the city is expected to increase with a few large deals in office assets being currently in the pipeline.

Gartner: Government IT spend in India to reach $6.4 billion in 2014

Mumbai: Governments in India will spend $6.4 billion on IT products and services in 2014, an increase of 4.3 per cent over 2013, according to a study by Gartner.

This forecast includes spending by Government (Government is composed of State and regional governments and Central government agencies.) on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, which include consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall spending category throughout the forecast period within the Government sector,” said Anurag Gupta, research director at Gartner.

“IT services are expected to grow 3.8 per cent in 2013 to reach $1.46 billion in 2014, up from $1.37 billion in 2013 — with the business process outsourcing segment growing 16.3 per cent in 2014,” Gupta added.

Internal services (referring to salaries and benefits paid to the information services staff) will achieve a growth rate of 9.4 per cent in 2014.

The information services staff includes all company employees that plan, develop, implement and maintain information systems. Software will achieve the highest growth rate within spending categories with 10.3 per cent in 2014 to reach $758 million in 2014, up from $687 million in 2013, led by growth in vertical specific software (software applications that are unique to a vertical industry).

Information and communication technology service providers will benefit by eGovernment projects and citizen participation aided by expansion of affordable broadband connectivity and mobile solutions, it said.

India breaks into top 10 in 2013 Gunn Report

Mumbai: With an estimated market size of $5 billion, India's the 14th largest advertising market in the world. And in the latest edition of the Gunn Report, it's finally broken into the Top 10 list of countries that have won the most advertising awards. That's up from the 13th spot last year.

The Gunn Report and Showreel of the Year is an annual publication, authored by Donald Gunn and Emma Wilkie, which ranks ad agencies across the world by their wins at the top creative awards shows. The report was first published in 1999 and the rankings are used by network agencies and marketers.

The report also names McCann World-Group India (Mumbai) as the most awarded Indian agency, a position the agency held in 2007. Taproot India (Mumbai), which topped the India chart in 2012 has slipped to the number 2 spot. In joint third position are JWT India (Mumbai) and Leo Burnett India (Mumbai & Delhi). The surprise this year is Ogilvy & Mather - from dominating the Gunn Report between 2008 and 2012, it's at the 5th spot this year. And Creativeland Asia, which shone in the 2011 and 2012 editions, failed to make it in the 2013 rankings.

"When I joined advertising, India was like an isolated island. But now the global advertising fraternity can relate to us with strong brand building and some great creative work," says Prasoon Joshi, Executive Chairman, McCann World-Group India. While mails and messages written to Colvyn Harris of JWT and Agnello Dias of Taproot did not get a response, Joshi admits such recognition helps an agency attract and nurture great talent. "Different award shows honor different kind of craft. But the Gunn Report gives the holistic picture about an agency," he says.

India, Canada sign audio-visual co-production pact

New Delhi: The Indian and Canadian Governments on Monday signed an audio-visual co-production deal. The deal was signed by Secretary in the Ministry of Information and Broadcasting Bimal Julka and the Canadian High Commissioner Stewart Beck.

In a statement, the I and B Ministry said the agreement would benefit producers from both the countries in pooling their creative, artistic, technical, financial and marketing resources for co-productions and lead to exchange of art and culture among the two countries.

The agreement is also expected to boost the utilisation of Indian locales for shooting and increase the visibility and prospects of India as a preferred film shooting destination and will lead to the inflow of foreign exchange into the country. “The agreement will also lead to the transparent funding of film production and boost export of Indian films into the Canadian market,” it added.

Similar agreements have been signed with Italy, the UK, Ireland, Germany, Brazil, France, New Zealand, Poland and Spain.

Under this agreement, films qualify as a national production in each of the partner nations and offer benefits such as government financial assistance, tax concessions and inclusion in domestic television broadcast quotas.

Honda plans India R&D unit with investment of Rs 500 crore to develop affordable cars

New Delhi: Japanese carmaker Honda Motors is planning to set up a subsidiary in India that would work towards developing cars for the local market and increasing the use of locally-made components in its existing vehicles to make them more affordable.

The facility, Honda Genbetsu India (HGID), would focus on research and development and is likely to come up at the company's existing manufacturing plant at Greater Noida, sources with knowledge of the matter said.

It already has local R&D operations, which would likely be separated into the new unit, they said. The unit will likely come at an initial investment of around Rs 500 crore. According to sources in the automotive industry, this facility will extend support for Honda's localisation strategy for its running models as well as provide designing support for some upcoming India-specific models in the near-term.

After developing a phenomenally fuelefficient diesel engine and lining up some interesting products like the Mobilio multipurpose vehicle and the Jazz premium hatchback for India, Honda is enthusiastic about its prospects in the Indian auto market. "After the success of its India-specific Amaze sedan, Honda is revitalising its plans for this market.

It plans to develop smaller cars focusing on the Indian market where HGID would play a critical role," said a source. Honda sales have zoomed after the launch of its diesel cars, especially the Amaze.

It became the fourth largest carmaker in India in January, overtaking Tata Motors and Toyota Kirloskar Motors. It sold 15,714 cars in January, nearly three times compared with a year earlier.

Honda Cars India already operates another local entity, Honda Motor India, which takes care of its components and motor parts business. The new R&D unit would be the third business closely associated with its car manufacturing operations.

Responding to a query from ET, Honda Car India said it is committed to the Indian market and will expand the focus of its R&D operations towards more India-oriented products in coming years.

Frankfurt School ties up with Avanse to offer student loans

New Delhi: Germany-based Frankfurt School of Finance and Management has joined hands with education finance company Avanse Education Loans. This association will help Indian students to pursue education in the Frankfurt School by getting financial access to their choice of courses. The company will provide 100 per cent funding for students. The cost of education at Frankfurt ranges from Rs. 30 lakh (€31,500) to Rs. 72 Lakh (€44,550) in addition to living expenditure of around €35,000.

Avanse will provide loans for various courses at the Frankfurt School including courses such as Master of International Business, Master in Quantitative Finance, Master of Finance in India & Frankfurt, Master in Management, MBA in International Healthcare Management, Bachelors in Business Administration, and Bachelors in International Business Administration. Ranked 27th in the Financial Times Global Ranking , the Frankfurt school has 86 regional education centres throughout Germany. In India, Avanse is associated with over 400 educational institutions and consultants offering academic programmes in arts, sciences, engineering, management, medicine, music and more.

Google's Trekker brings monuments home

Ever struck by the sheer amazement of the idea of taking a tour in and around the Taj Mahal and admiring its grandiose structure sitting in your living room sipping a cup of coffee? Now, Google, in collaboration with the Archaeological Survey of India has turned this exciting thought into a reality. For the first time, Google has brought for history and culture lovers 360-degree online imagery of iconic Indian heritage sites through the Google Trekker technology. Now, one can virtually visit famous monuments from the comfort of their own homes without having to go all the distance.

The opportunity to visit these archeological sites is available through the updated version of Google Maps through Street View and the Google Cultural Institute, which also provides information about the monuments while giving one a close tour. It also uses 3D modelling, and other Google technologies such as YouTube to help explore and appreciate these sites via videos, photos and in-depth information. This virtual walkthrough through the Street View option is seamless and as good as being there itself.

"When we launched this initiative five months ago, even we at Google were not sure if we could bring the Taj online. Today, I can say, it is a unique product. Google's mission is to make information accessible. Google is committed to helping preserve and showcase cultural heritage across the world," said Rajan Anandan, vice-president and managing director, Google India.

The 360-degree panoramic imagery is currently available for 30 historical sites, including the Taj, Humayun's Tomb, Qutb Minar, Red Fort, Jantar Mantar, Fatehpur Sikri, Itimad-ud-Daula, Agra Fort, Krishnagiri Fort, Rajagiri Fort, Muvar Koil & Aivar Koil, Muchu Kundesvara Temple, Perumal & ShivaTemple, Rock Cut Jain Temple, Thirumayam Fort, St George Fort, Chandragiri Fort, Amaravati Buddhist stupas and remains, Nagarjuna Konda Buddhist Stupas, Guntupalli Caves, Kanheri Caves, Lenyadri Caves, Shanirwada Fort, Aga Khan Palace, Raigad Fort, Hirakota Old Fort, Pandulena Caves, Bibi ka Makbara, Shahi Quila and Hoshang Shah's Tomb. Google is in the process to launch 70 more soon.

Google creates a dynamic, immersive online experience of historical exploration in an engaging and simple manner. The 3D imagery is sharp and the Trekker has captured the details up close, making the exploring experience as realistic as it can get. The tour is not just limited to the monument, one can also go around the streets nearby and take the sensation of walking around the site. One needs an internet connection with a decent speed for a smooth tour. Searching for the desired monument is easy.

One can view the monuments from every direction, distance and angle. The only limitation is the lack of any audio accompaniment with this visual treat, as the complete appreciation of any archeological site is possible only when some explanation is offered for what one sees. So, the guide only gives a limited tour. And the online experience can never match up to the real experience of standing at the great creations of the past. Yet, what it offers is definitely a technological marvel.

Trekker technology is already available for hundreds of world heritage sites.

Anandan said, "India is unique in terms of the sheer wealth of heritage and iconic historical monuments, and it has been our privilege to work with the ASI in collecting new 360-degree photos of 30 Indian heritage sites. We hope the imagery, which would reach almost one-third of the world's population, will help make India's heritage and culture more accessible to people at home and abroad."

4.14 m more rural mobile subscribers added in Jan

Mumbai: The country’s GSM operators added 4.14 million rural subscribers in January, a 1.5 per cent increase from the previous month, taking the total to 285.35 million.

Vodafone India added the maximum rural subscribers of 1.31 million taking its total to 87.43 million during the month under review, according to data released by GSM operators’ body — Cellular Operators Association of India (COAI).

Bharti Airteladded 1.25 million users during the month. The New Delhi-based company, however, maintained its leadership position with a total of 91.40 million users. Idea Cellular, the Aditya Birla group company, added 0.87 million users, taking the total to 71.25 million, while Aircel added 0.40 million, increasing the total to 24.64 million in January.

Telewings (formerly Uninor) added 0.31 million subscribers, taking its total rural user base to 10.63 million as of January 31.

TN, Uttar Pradesh
The maximum rural subscriber additions of 574,412 came in from Tamil Nadu circle, while Uttar Pradesh (East) had the maximum rural user base of 29.42 million, according to COAI.

European Investment Bank (EIB) and IREDA sign Euro 200 million Agreement

New Delhi: ‘ The European Investment Bank (EIB) has sanctioned a Line of Credit (LoC) of Euro 200 million to M/s Indian Renewable Energy Development Agency Ltd. (IREDA) to be utilized for financing Renewable Energy and Energy Efficiency projects in India. The total loan period is 20 years. The LoC is secured by a sovereign guarantee from Government of India.

Agreement for availing the LoC of Euro 200 million from EIB, was signed by Shri Debashish Majumdar, Chairman and Managing Director, IREDA and Mrs. Magdalena Alvarez Arza, Vice President, EIB in New Delhi today in the presence of Dr. Farooq Abdullah, Union Minister for New and Renewable Energy.

Speaking on this occasion, Mrs. Magdalena Alvarez Arza, Vice President, EIB said that European Investment Bank started funding Indian project in 1993 and in this period of two decades, India has now become the second largest recipient of EIB fund.

Dr. Satish B Agnihotri, Secretary, MNRE said that this LOC of Euro 200 million will facilitate in IREDA’s financing of existing and new projects of renewable energy.

To tackle the twin problems of widening power deficits and mounting carbon emissions, the Indian Government has set ambitious goals to increasingly displace fossil fuels with renewable sources. The agreement signed today supports the Government of India’s focus on a low carbon growth strategy for power generation in India. Developing renewable energy sources not only helps address environmental concerns, but also improves energy security and spurs regional economic development.

IREDA is the dedicated financing arm of the Ministry of New and Renewable Energy and has been spearheading the growth of renewable energy in the country. It has cumulatively financed over 2000 projects corresponding to a financial value of about Rs.22,500 crores. IREDA has been raising resources from various bilateral / multilateral agencies as also from domestic sources through both taxable and tax-free bonds.