BANGALORE: Shapoorji Pallonji Real Estate and PE fund New Vernon are selling their investments in three Information Technology (IT) parks in Chennai, Pune and Gurgaon for a cumulative value of 1,500-2,000 crore, a person directly involved in the transaction told ET.
“They have been in the market for some time now. Shapoorji holds 26% stake in these parks while the remaining is held by PE fund New Vernon, which it picked up in 2006,” said two investment bankers, requesting anonymity.
A Shapoorji Pallonji spokesperson did not respond to an email query sent by ET. Repeated phone calls to New Vernon went unanswered.
The real estate arm of Shapoorji Pallonji Group has a chain of IT parks in special economic zones, called SP Infocity, across locations such as Nagpur, Gurgaon, Manesar, Mohali, Kolkata, Chennai and Mysore.
Shapoorji Pallonji Real Estate is currently building a 2.70 million sq ft IT park in Chennai, which is being developed in two phases. The first phase, spread over 950,000 sq ft, has been completed and is being leased to firms such as HSBC, Amazon and Saksoft.
The other two IT parks – SP Infocity in Gurgaon and Pune – are operational and leased to companies such as IBM, Honeywell Automation, Nokia and global supply chain management firm Li & Fung.
Separately, New Vernon, along with Housing Development Finance Corp (HDFC), a private equity fund and another fund house holds 27% stake in five special economic zones (SEZs) and IT parks in different parts of the country.
New Vernon has an investment of $60 million in these projects, while HDFC has $75-million investment.
HDFC is planning to withdraw its investment in these projects to spend in two residential projects in Pune, where it will hold majority stake.
On the other hand, Shapoorji Pallonji holds majority stake of 73% in these five projects. Real estate currently forms a very small business for the group. The company recently floated $500 million private equity fund, mainly focussed on real estate.
“The projects will be put under an SPV when the stake is sold. The return on investment will be in early teens,” said the first person.
Shapoorji Pallonji Real Estate Fund has so far managed to mop up $250 million from third party investors, and plans to invest the raised money in development of projects for the SP Group and third party.
Last year, Shapoorji Pallonji appointed Rajesh Agarwal, former head of AIG real estate fund, to spearhead the private equity business for the company.
As per Chennai-based private equity and venture capital tracking firm Venture Intelligence, private equity real estate firms invested $477 million across 10 deals during the quarter ended March 2012 as against 26 deals worth $1,523 million last year in corresponding quarter.
OVL EYES 25 PER CENT STAKE IN SOUTH ATLANTIC EXPLORATION BLOCK
NEW DELHI: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is in talks to buy 25% stake in an exploration block off Falkland Islands in the South Atlanticsea. ONGC Videsh is in talks to buy 25% stake of UK-listed Falkland Oil and Gas Ltd in two exploration blocks, lying 350 miles off the Southern tip of Argentina, sources privy to the development said. FOGL, an oil and gas exploration company focused on its extensive licence areas to the south and east of the Falkland Islands, will retain operatorship of the licence. The blocks are located in the south and east Falklandbasins in water depths ranging from 500 meter to 2,000 meter. The resources estimate of 15 prospects identified may hold up to 15 billion barrels of oil equivalent or 46 trillion cubic feet of gas reserves. (For details log on to: http://www.financialexpress.com/news/ovl-eyes-25-stake-in-south-atlantic-exploration-block/948263/)
BOARD OKAYS NTPC HYDRO MERGER WITH NTPC
NEW DELHI: State-run NTPC on Friday said the Board of Directors has approved the merged of wholly-owned subsidiary NTPC Hydro with itself. “With a view to have benefit of synergy of operation, enhancement of efficiency and administrative control to optimise utilisation of resources, the Board of Directors has approved amalgamation of NTPC Hydro with NTPC Ltd,” the company informed BSE. This merger is subject to compliance of Companies Act, 1956 and subject to receipt of requisite approval from the Ministry of Corporate Affairs, shareholders and stock exchanges, the company said. Ministry of Power, the parent ministry of NTPC, last month, allowed amalgamation of NTPC Hydro with NTPC subject to approval from the competent authority. (For details log on to: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/board-okays-ntpc-hydro-merger-with-ntpc/articleshow/13095387.cms)
PANASONIC ACQUIRES 76% STAKE IN FIREPRO SYSTEMS
KOLKATA: Japan’s largest electronics company, Panasonic Corp on Friday announced plans to acquire 76.2% stake in Firepro Systems, a Bangalore-based company in infrastructure protection and security solutions such as fire alarm, fire suppression, video surveillance and building management. Panasonic has also decided to enter into a definitive agreement for subscription of new shares through its wholly-owned subsidiary, Anchor Electricals. Panasonic will acquire a portion of Firepro’s ordinary shares owned by financial investors, while Anchor will invest in Firepro through a fresh issue of shares. This will result in a significant majority stake for Panasonic Group in Firepro. After the acquisition, the existing shareholders will continue to hold 23.8% stake in Firepro. Existing shareholders, including NS Narendra, the founder chairman & managing director of Firepro, will continue to hold their stake in the company. Mr Narendra will also continue leading the company. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/panasonic-acquires-76-stake-in-firepro-systems/articleshow/13094230.cms)
TIMES GROUP, ABP MAY SOON START FORMAL TALKS FOR GRAND TV ALLIANCE
MUMBAI: The lure of regional TV is getting the bigger national players hooked. Call it the new Tele Talk. India’s largest diversified media conglomerate, Bennett, Coleman and Co Ltd (BCCL), popularly known as the Times Group, may soon engage in formal talks with Aveek Sarkar’s Ananda Bazaar Patrika (ABP) to explore a grand partnership involving each other’s TV networks. Times Global Broadcasting Ltd is the television arm of BCCL and is popularly called the Times Television Network. ABP TV’s foray into news is through Media Content & Communications Services India Pvt Ltd (MCCS). Senior officials of BCCL have described reports of such talks speculative and ABP representatives said they are not aware of any specific proposal for a partnership. Samir Jain, Vice-Chairman of BCCL, Vineet Jain, MD, BCCL, and Aveek Sarkar, the chief editor of Ananda Bazaar Group of Publications, did not respond to Business Standard’s e-mail questions on the matter. (For details log on to : http://www.business-standard.com/india/news/times-group-abp-may-soon-start-formal-talks-for-grand-tv-alliance/474163/)
INDUS TOWERS JOINS HANDS WITH TERI TO LIGHT RURAL VILLAGES THROUGH HIGH EFFICIENCY SOLAR LED LANTERNS
NEW DELHI: IndusTowersmade an announcement today that the company would provide high efficiency Solar LED Lighting Systems, to rural areas. Speaking of the company’s Green Vision, BS Shantharaju, CEO, IndusTowerssaid, “One of Indus’ core Values is Environment. We are committed to our values framework and have already reduced usage of 62 million litres of diesel in the last 2 years and our endeavor will be to reduce it further every year. We will take this campaign to as many cities as possible and recreate the image of our country as a ‘Green Nation’. We, as a company, are dedicated to an eco- friendly India’. Over 1.4 billion people in the world lack access to electricity and 25% of them live in India.” For these people, life comes to a standstill after dusk. Inadequate lighting is not only an impediment to progress and development opportunities, but also has a direct impact on the health, environment, and safety of people who are forced to light their homes with kerosene lamps, dung cakes, firewood, and crop residue after sunset. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/indus-towers-joins-hands-with-teri-to-light-rural-villages-through-high-efficiency-solar-led-lanterns/articleshow/13095251.cms)
INDIAN OIL, BHARAT PETROLEUM AND HINDUSTAN PETROLEUM ON PETROL PUMP EXPANSION SPREE
NEW DELHI: State-run oil marketing firms Indian Oil, Bharat Petroleum and Hindustan Petroleum are on an expansion spree-setting up 3,100 petrol pumps outlets in 2011-12-brushing aside financial concerns arising out of their combined revenue loss of Rs 15,000 crore in the first nine months of this fiscal. ‘State-run fuel retailers have added over 3,100 retail outlets in 2011-12, which works out to about 8.7 outlets per day,’ says a latest report by Petroleum Planning & Analysis Cell, a data keeping arm of oil ministry. Each pump costs between Rs 50 lakh and Rs 3 crore, depending on the location and size of the unit, the report adds. The total pump outlets in Indiahave grown to 45,000 by the end of this March. ‘All additional outlets have come from PSU stable, and private outlet number has actually declined marginally,’ the report adds. Rapid expansion by state firms comes at a time when the private sector is downsizing its retail network. Essar, Shell and Reliance Industries have closed some of their pumps due to subsidised sales by state-oil firms. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/indian-oil-bharat-petroleum-and-hindustan-petroleum-on-petrol-pump-expansion-spree/articleshow/13102517.cms)
ARUN ICE-CREAM MAKER HATSUN AGRO EYES WIND POWER
CHENNAI: Hatsun Agro Product, the Chennai-based dairy known for brands such as Arun ice-cream, is scouting for partners in wind power generation. The company has told stock exchanges that its board of directors have approved investment not less than 26% in a partnership firm, limited liability partnership or body corporate engaged either in windmill or any other mode of power generation. RG Chandramogan, Chairman and Managing Director of Hatsun, said the company has zeroed in on 3 players, all of whom are in wind energy. “”We will finalise the deal in a month,”” he said. Hatsun would use the power for its captive needs. Tamil Nadu has been experiencing a huge power deficit, which has impacted industrial units a great deal. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/arun-ice-cream-maker-hatsun-agro-eyes-wind-power/articleshow/13096305.cms)
SAIL EYES IRON, COAL RESOURCES IN MONGOLIA
NEW DELHI: Indian steelmakers have set their sights on mineral rich Mongolia, chasing the huge mineral wealth that is helping the once pastoral, land-locked economy register one of the fastest economic growth rates in the world. Steel Authority of India Ltd (SAIL) is considering replicating its successful public-private approach in Afghanistanand Mongolia. The two countries have signed a memorandum of understanding to study the possibilities of setting up mineral-processing facilities for iron ore and coal, both coking and thermal, in Mongolia, and downstream steel-making facilities for domestic consumption and trade. In a statement from Ulaanbaatar, the public sector steel maker said the MoU covers exploration of opportunities for investments to be made by SAIL either individually or in a consortium with other entities. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/steel/sail-eyes-iron-coal-resources-in-mongolia/articleshow/13104910.cms)
SUZLON COUNTS ON REPOWER TO REPAY $566 MILLION FOREIGN BONDS
MUMBAI: Life has come a full circle for Suzlon Energy. Riding on chairman Tulsi Tanti’s insatiable growth aspirations, the Pune-based company bought a majority stake in German wind turbine maker REpower for 1.3 billion in an intense, five-month long bidding war with French energy giant Areva in May 2007. By 2011, Tanti had bought 100% in REpower by spending another 500 million. Much of this acquisition was funded by money raised through foreign currency convertible bonds (FCCBs). Now it’s payback time, with the first tranche of FCCBs set to mature next month. And REpower – the biggest reason for his high leverage today – may be his best bet to get out of the debt trap he finds himself in. “REpower is the reason why Suzlon raised money through FCCBs,” says Raj Kothari, a London-based bond trader at Sun Global Investments, which owns Suzlon bonds. “And REpower holds the key to resolve Suzlon’s repayment problems,” he adds. Suzlon needs $360 million in June and $206 million in October, totaling $566 million (Rs 2,995 crore) for redemption of FCCBs issued five years ago. Suzlon’s high leverage-consolidated debt is double of equity-and repeated losses have left little room to organise the large amounts of cash needed to redeem the bonds. On the other hand, REpower is sitting pretty on cash of $247 million, a solid brand equity and a better operating performance. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/suzlon-counts-on-repower-to-repay-566-million-foreign-bonds/articleshow/13104957.cms)
NTPC MAY ISSUE DOMESTIC BONDS FOR FUNDING EXPANSION
NEW DELHI: Public sector power producer NTPC may raise Rs 25,000-30,000 crore via domestic bonds to fund its expansion projects. This was disclosed by the company’s Director (Finance), Mr A.K. Singhal, at an investors’ conference call on Friday, a day after its fourth quarter of 2011-12 numbers. The company mentioned that it is in a ‘comfortable position’ to issue domestic bonds. NTPC did not give the timeline for raising such debt, said an analyst who participated in the call. NTPC may take the ECB route now that the Government has reduced withholding tax on interest payments on foreign borrowings. (For details log on to : http://www.thehindubusinessline.com/companies/article3408975.ece)
FDI IN 2011-12 RISES 34 PER CENT, A NEW HIGH
Foreign direct investment (FDI) in Indiaspiked 34 per cent to a record $46.8 billion in 2011-12, latest RBI data show. A spate of big-ticket deals resulted in the surge. As stock valuations dipped, overseas investors were eager to pick up stakes in Indian companies last fiscal. London-listed Vedanta acquired a controlling stake in Cairn Indiafor $9 billion. British major BP paid $7.2 billion for a stake in oil and gas fields operated by Reliance Industries and Vodafone Group purchased partner Essar’s shares in their telecom joint venture. FDI inflows were less than $10 billion prior to 2005-06. They improved thereafter and the country received $34.8 billion in 2010-11. Mauritiuschipped in with the maximum funds in 2011-12, putting in a third of the FDI. But its share declined from 36 per cent in 2010-11. In contrast, FDI from Singaporeshot up almost three-fold and accounted for 17.8 per cent of all FDI inflows during the period. The fear that the tax authorities might take a closer look at funds flowing from Mauritiuscould have resulted in incremental flows being routed through Singapore. (For details log on to : http://www.thehindubusinessline.com/todays-paper/article3409741.ece)
GROWTH A WORRY AS MARCH FACTORY OUTPUT FALLS 3.5 PER CENT
NEW DELHI: Industrial production contracted unexpectedly in March, capping a week of grim economic news and spotlighting the Manmohan Singh government’s struggles with boosting growth. Output at factories, utilities and mines shrank 3.5% in March from a growth of 7.3% a year ago, prompting finance minister Pranab Mukherjee to say the government will take bold decisions to spur growth. But his claim did not inspire confidence, especially after the Cabinet on Thursday deferred a decision on increasing the cap on foreign direct investment in insurance to 49% from 26%. Mukherjee also seemed to be counting on the Reserve Bank of India’s decision last month to reduce the repo rate by 50 basis points. “These figures are disappointing. Though the RBI’s monetary stance has been reversed in the last policy announcement, it will take some time for interest costs to come down,” he said. (For details log on to : http://economictimes.indiatimes.com/news/economy/indicators/factory-output-falls-3-5-finance-minister-pranab-mukherjee-vows-bold-decisions-to-spur-growth/articleshow/13102406.cms)
REVIEW 80% HIKE IN CRUDE CESS: PANEL
NEW DELHI: A parliamentary panel has told the government to reconsider the 80% increase in the cess on crude oil production to R4,500 a tonne as it has reduced the resources available with oil producers to expand their operations. The cess was increased in the Union Budget for 2012-13. The increase in the cess has added to ONGC’s outgo under the head by R4,500 crore a year, and for Oil Indiathe outgo is R810 crore. “By this increase, these oil companies will be deprived of resources for their own utilisation and investment targets,” the standing committee on petroleum and natural gas said in its report tabled in Lok Sabha this week. The panel suggested it was essential to give the oil producers relief as they are already burdened by the financial assistance that they give to oil marketing companies IOC, HPCL and BPCL in keeping auto and cooking fuel affordable to the consumer. Now, the government and the upstream companies bear the subsidy on sensitive petroleum products like diesel, kerosene and LPG, while a part of the losses are absorbed by the retailers. (For details log on to : http://www.financialexpress.com/news/review-80-hike-in-crude-cess-panel/948265/)
GIVE POWER SECTOR TOP PRIORITY IN GAS DISBURSAL: PANEL
NEW DELHI: India’s natural gas output is plunging owing to the sharp drop in production from Reliance Industries’ D6 block in the Krishna-GodavariBasin. Nevertheless, the government is under pressure to change its gas allocation policy in favour of the power sector. A parliamentary panel has sought topmost priority for the power sector, the rapid development of which is integral to sustained levels of high economic growth, in allocation of existing and future domestic gas supplies. As of now, the fertiliser sector is given the highest priority in gas disbursal, followed by the city gas sector in the government’s policy for utilisation of the hydrocarbon resource. Power comes third on the priority list. “Considering the fact that the power sector plays an important role in economic development of the country…, the committee would like to re-emphasise that the sector needs top priority in allocation of gas,” the standing committee on energy has said in its latest report. (For details log on to : http://www.financialexpress.com/news/give-power-sector-top-priority-in-gas-disbursal-panel/948428/)
PANEL TO PROBE DRUG APPROVAL PROCESS
NEW DELHI: Acting swiftly on the stinging criticism by a Parliamentary panel on the way new drugs are approved in the country without clinical trials, health and family welfare minister Ghulam Nabi Azad on Friday set up a three-member expert panel to probe the allegations and to recommend ways to improve the drug regulator’s functioning. The panel comprises director General of ICMR VM Katoch, president of the National Brain Research Centre, department of Biotechnology, Manesar, PN Tandon and former director of Sanjay Gandhi Postgraduate Institute of Medical Sciences, Lucknow, SS Aggarwal. The panel has been given two months to report its findings. The expert panel has been told to study the validity of the scientific and statutory basis adopted for approval of new drugs without conducting clinical trials. Indian drug authorities have been clearing new drugs, which are approved in the West, relying on the judgment and the expertise of the regulators in developed countries like the US. (For details log on to : http://www.financialexpress.com/news/panel-to-probe-drug-approval-process/948269/)
SERVICE TAX ON RAILWAY FREIGHT FROM JULY 1
NEW DELHI: Using the Railways to transport goods would become more expensive from July 1, with the government bringing the sector under the service tax net. The move, while being inflationary, would further reduce competitive edge of the national transporter against the road sector. According to official sources, the finance ministry does not want to further defer the levy as it goes against its plan to complete the service tax chain by bringing all activities barring a few in the negative and exemption lists under the tax net. Moreover, the levy has the potential to provide additional revenue to the tune of R1,000 crore to the exchequer. In Budget 2009-10, the government had proposed service tax on goods carried by the railways to provide a level playing field to transport of goods by roads. However, it was deferred many times due to opposition from Trinamool Congress chief Mamata Banerjee. (For details log on to : http://www.financialexpress.com/news/service-tax-on-rly-freight-from-july-1/948266/)
OIL PRICES LIKELY TO STAY HIGH DESPITE GOOD SUPPLY: IEA
LONDON: Tension between Iranand the West is likely to keep oil prices high despite a dramatic improvement in world supply and a big build in stocks, the International Energy Agency (IEA) said on Friday. The agency, which advises 28 industrialised nations on energy policy, said soaring global oil supply from OPEC countries and the United Statesfar outpaced global demand, curbed by poor economic activity in developed nations. The agency said global oil supply rose 600,000 barrels per day (bpd) to 91 million bpd in April and was now 3.9 million bpd over year ago levels, with 90% of the increase coming from OPEC. Saudi Arabia has said it pumped 10.1 million bpd last month, its highest for more than 30 years, in a bid to meet growing demand and curb oil prices, which hit a three-and-a-half-year high in March. But the IEA said in its monthly Oil Market Report that uncertainty remained and the agency, which last year released strategic oil stocks to compensate for the outage of Libyan production, would be ready to act if necessary. (For details log on to : http://www.financialexpress.com/news/oil-prices-likely-to-stay-high-despite-good-supply-iea/948403/0)
NO POLICY PARALYSIS, DECISION-MAKING IS SLOW IN INDIA: LAKSHMI MITTAL
LONDON: “I do not think there’s a policy paralysis, but decision-making is too slow in India,” said Lakshmi Mittal, India-born chairman of ArcelorMittal, the world’s largest steel company. Speaking exclusively to TOI on Friday, Mittal said, “Indianeeds to move the way the rest of the world is moving to be competitive.” The comments came after Mittal’s declaration this week at his firm’s annual general meeting in Luxembourgthat he foresaw delays in ArcelorMittal’s planned Rs 30,000 crore investment in India. When a journalist suggested half in jest if he should speak to West Bengalchief minister Mamata Banerjee, the steel magnate’s smile vanished. “I am very annoyed that she only arrested Marwaris and no Bengalis after the hospital fire. Please carry that,” he angrily shot back, referring to Trinamool government action after AMRI hospital fire in Kolkata that killed nearly 100 people. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/No-policy-paralysis-decision-making-is-slow-in-India-Lakshmi-Mittal/articleshow/13101437.cms)
SC ORDERS PROBE INTO BS YEDDYURAPPA’S LINKS TO ILLEGAL MINING; JSW STEEL’S DONATIONS UNDER SCANNER
NEW DELHI: The Supreme Court has directed the Central Bureau of Investigation (CBI) to probe former Karnataka chief minister BS Yeddyurappa’s links to illegal mining in the state, almost certainly dashing his hopes of a return to power in the near future. Also under investigation will be JSW Steel, India’s third-largest steelmaker, which has been accused of making donations to entities controlled by Yeddyurappa’s kin in return for access to illegally mined iron ore. In an order on Friday, a special forest bench comprising Chief Justice SH Kapadia and Justices Aftab Alam and Swatanter Kumar directed the CBI to complete its investigation within three months. The judges also expressed anguish over the rampant illegal mining of iron ore under political patronage in Karantaka and Andhra Pradesh. “Wherever and whenever the State fails to perform its duties, the court shall step in to ensure that the rule of law prevails,” wrote Justice Kumar on behalf of the bench. (For details log on to : http://economictimes.indiatimes.com/news/politics/nation/sc-orders-probe-into-bs-yeddyurappas-links-to-illegal-mining-jsw-steels-donations-under-scanner/articleshow/13103539.cms)
GROUP FIRMS FARE WELL IN BUILDING GLOBAL ASSETS: STUDY
HYDERABAD: The majority of Indian companies with an international asset base are part of business conglomerates. According to the finding of a survey conducted by IndianSchoolof Business and the Brazilian business school Fundacao Dom Cabrall, 50 per cent of companies that acquired global assets during 2008-11 belonged to business groups. “The sharing of knowledge and resources seem to be helping the affiliates of business group firms in acquitting overseas assets,” Prof. Raveendra Chittoor of ISB who conducted the study told Business Line. The survey had ranked Indian trans-national companies, using a global measure of internationalisation called the transnational index, during 2008-09 to 2010-11. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3409724.ece)
300 PER CENT JUMP IN GOLD EXPORT INDUSTRY QUESTIONS DATA
MUMBAI: While the government has taken strong measures to curb gold import, export of the precious metal quadrupled in the first 11 months of last fiscal over the previous year. In a written reply to a question in the Lok Sabha on Friday, Minister of State for Finance S S Palanimanickam stated gold exports were up from 34.6 tonnes in FY11 to 138.5 in the first 11 eleven months of FY12. Gold exports in FY10 were 23 tonnes. Industry analysts, however, point out the jump shown in government statistics could be overstated. According to the Gems and Jewellery Export Promotion Council, exports in FY11 were approximately 109 tonnes, which rose to 127 tonnes in FY12. But, there are indications the sharp depreciation in the rupee and the interest differential on export finance rates may have led to arbitrage in gold. Exporters get cheaper finance against exports and if gold is exported, there isn’t much risk. And, they get financing, which is attractive arbitrage. Even currency movements provide them arbitrage opportunities. An analyst tracking exports said some export houses were exporting gold just to achieve star status (which is given based on a certain amount of exports). (For details log on to : http://www.business-standard.com/india/news/300-jump-in-gold-export-industry-questions-data/474156/)
AAMIR’S TV DEBUT GETS FEWER EYEBALLS THAN MOST CELEB SHOWS
MUMBAI: Despite much hype, Aamir Khan’s talk show Satyamev Jayate got an average TV rating of 2.9 across the six metros in its debut episode on May 6. The rating was far lower than those of most other celebrity-hosted shows, the most significant being Amitabh Bachchan’s Kaun Banega Crorepati. The preliminary rating, released by STAR Indiaon its flagship channel STAR Plus, was based on the average viewership across Delhi, Mumbai, Kolkata, Chennai, Hyderabadand Bangalore. The more predominantly Hindi-speaking metros — Delhi, Mumbai and Kolkata — clocked a television rating (TVR) of 3.8. The TVR reflects the percentage of viewers watching a programme at a particular time. The programme has a prime Sunday morning slot, which many thought would recreate the popularity of Sunday morning shows such as Ramayana and Mahabharata. “The show’s ratings are lower than other celebrity-hosted reality shows. For instance, Sony’s Kaun Banega Crorepati Season 5 had opened with a TVR of 5.24, while Shah Rukh Khan’s Kya Aap Paanchvi Pass Se Tez Hain opened around four. Akshay Kumar’s Khatron Ke Khiladi got 4.4 while Salman Khan’s Dus Ka Dum fetched 2.2,” said a media buyer on the condition of anonymity. The ratings have been given by various channels and media buyers for the six metros. (For details log on to : http://www.business-standard.com/india/news/aamirs-tv-debut-gets-fewer-eyeballs-than-most-celeb-shows/474157/)
HONDA MAKES A MARK IN CROWDED SMALL CAR MARKET
NEW DELHI: In a country shown to be partial to the Honda City, it is not this flagship sedan being driven out in hordes from the company’s showrooms. Rather, the Japanese automobile major seems to have finally made a mark in the small car segment, with the premium hatchback, Brio. Last month, Honda Siel Cars India (HSCI) sold 3,590 units of the Brio as compared to 2,092 units of the sedanCity. Steady demand for its premium hatchbacks, Brio and Jazz, have in fact enabled Honda to overtake the sales of General Motors, Toyotaand Volkswagen in the premium compact segment over the past two months. In April, Honda sold 4,890 units of the Brio and the Jazz, compared to 4,622 of the Chevrolet Beat and the UVA, 3,397 units of the Volkswagen Polo and 2,157 units of the Toyota Liva. With the two models, HSCI had a 7.3 per cent share in the premium hatchback market in Indialast month. The numbers, however, pale in comparison to market leader Maruti Suzuki, which, with sales of 26,072 units of the Swift, Ritz and Estilo, has around 30 per cent share in the category. (For details log on to: http://www.business-standard.com/india/news/honda-makesmark-in-crowded-small-car-market/474147/)
VENKY’S GETS FEATHERS PLUCKED BY BLACKBURN ROVERS FANS
MUMBAI: When Pune-based Venky’s Chicken bought Premier League club Blackburn Rovers for Rs 163.3 crore (£23 million) in November 2010, chairperson Anuradha Desai told an English daily she “watches cricket, hockey sometimes; but never football”. Her words may come back to haunt her. Eighteen months after the acquisition, Rovers have been relegated from the premier league and are being booed by home fans. The owners are planning a range of cutbacks, sale of current squad players and seeking possible bailout from buyers in Asia. “Officials at Blackburnare gearing up for a redundancy of up to 40 per cent,” agencies have reported. The troubles seem to be getting worse. Yesterday, the Rovers said in a statement on their website that deputy chief executive Paul Hunt had left the club. Agency reports said Hunt had been sacked, following claims that he wrote to the club’s Indian owners, Venky’s, calling for the dismissal of manager Steve Kean, in a bid to help stave relegation from the Premier League. (For details log on to : http://www.business-standard.com/india/news/venkys-gets-feathers-plucked-by-blackburn-rovers-fans/474165/)
NO EXEMPTION FOR VODAFONE UNDER BILATERAL PACT: GOVT
NEW DELHI: The government has said that the UK-based telecom major Vodafone cannot be granted tax exemption under the bilateral investment promotion and protection agreement (BIPA) between Indiaand the Netherlands. The inter-ministerial group (IMG) to look into Vodafone’s notice threatening international arbitration in the R20,000-crore tax case, came to this conclusion in its meeting on Friday. Officials of finance ministry, law, external affairs and telecom attended the meeting. According to official sources, Article 4 of the BIPA does not state anything on tax exemption. The treaty provision “in respect of grant of national treatment and most-favoured nation treatment shall not apply in respect of any international agreement or arrangement relating wholly or mainly to taxation.” (For details log on to : http://www.financialexpress.com/news/no-exemption-for-vodafone-under-bilateral-pact-govt/948268/)
DR REDDY’S Q4 NET UP 2 PER CENT AT R343 CRORE
HYDERABAD: Dr Reddy’s Laboratories has registered a marginal increase of 2.46% in its net profit to R342.7 crore for the fourth quarter ended March 2012 against R334.47 crore in the corresponding quarter of the previous year. Net income from sales and services of the company rose to R2,658.45 crore against R2,017.27 crore during the same period of the previous fiscal. For the full year, the drugmaker posted a net profit of R1,426.21 crore against R1,104 crore in FY11, a growth of 29%. The company’s net income from sales and service for the year ended March 31, 2012, rose to R9,673.74 crore against R7,469.28 crore in the previous fiscal. This was primarily driven by growth in key markets of North America and Russiain the global generics segment and the pharmaceutical services and active ingredients segment. The board has recommended a final dividend of R13.75 (275%) per equity share of R5 face value for FY 2011-12. (For details log on to : http://www.financialexpress.com/news/dr-reddys-q4-net-up-2-at-r343-cr/948351/)
IKEA CEO MIKAEL OHLSSON TO MEET ANAND SHARMA ON RETAIL
NEW DELHI: Swedish retailer Ikea is sending its top executive to India to seek more clarity from the government on its recently liberalised norms for single-brand retail, raising hopes that foreign investors may finally be warming up to the new policy. The government had in January removed the 51% foreign direct investment cap in single-brand retail, subject to the condition that investors source at least 30% of their inputs from domestic small-scale producers. But till date only one company, UK-based footwear maker Pavers England, has applied for licence to set up a shop on its own in India. “Ikea had many queries that our officials have already addressed,” commerce and industry minister Anand Sharma told ET. “The company’s CEO Mikael Ohlsson will be in Delhilater this month to discuss the issue further.” (For details log on to : http://economictimes.indiatimes.com/news/economy/policy/ikea-ceo-mikael-ohlsson-to-meet-anand-sharma-on-retail/articleshow/13102556.cms)
HIGHER ABATEMENT TO BRING DOWN CONSUMER DURABLE PRICES
Air-conditioners, television, LCD and a host of other consumer durables received and unexpected bonanza from the finance ministry that could bring down their prices and push up demand. The finance ministry has announced major rationalisation measure for the consumer durable industry by fixing a uniform rate of abatement or the value exempted from indirect taxes including excise and customs duty. From now a uniform 65% per centage of value will be charged to excise duty, and customs levy in the case of imported goods. In many cases the amount charged was higher. The government had raised the median excise duty this budget to 12%, impacting the consumer durables sectors. (For details log on to : http://economictimes.indiatimes.com/news/economy/policy/higher-abatement-to-bring-down-consumer-durable-prices/articleshow/13101594.cms)
FOREIGN TRADE POLICY IN EARLY JUNE TO HAVE SOPS FOR SELECT SECTORS
NEW DELHI: The foreign trade policy for the on-going fiscal will be announced in the first week of June and is likely to have sops for sectors that need support to tide through the demand slowdown in the global market. Commerce and industry minister Anand Sharma has said that he will carry out a stock-taking exercise with all export promotion councils on May 17 following which a decision on government intervention in specific sectors will be taken. “After the stock taking exercise is complete, the government will intervene in sectors which require support,” Sharma said in a press statement, adding that the foreign trade policy or FTP for the year will be announced in the first week of June. (For details log on to : http://economictimes.indiatimes.com/news/economy/foreign-trade/foreign-trade-policy-in-early-june-to-have-sops-for-select-sectors/articleshow/13101276.cms)
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