MUMBAI: After Future Capital, Kishore Biyani is getting ready to unlock value in his general insurance joint arm.
According to three independent sources, Reliance General Insurance, the non-life insurance arm of the Anil Ambani-led Reliance Capital, has initiated talks with Biyani on a potential merger between Reliance General and Future Generali India Insurance Company.
“Talks are on currently, but both the parties are yet to agree on the valuation. Also, Generali Group is keen on having operational control in the merged entity,” said a source.
Formed in 2007, Future Generali is a joint venture between Biyani’s Future Group and the Generali Group of Italy. The Future Group owns 74 per cent stake in the company, while the Italian insurer owns the remaining 26 per cent, the highest permissible limit by Indian laws. Of the 74 per cent, Biyani’s flagship Pantaloon Retail directly and via special purpose vehicles holds close to 50 per cent stake, while the Biyani family holds around 25 per cent. Both companies have a similar joint venture in life insurance, named Future Generali Life.
When asked, a Reliance Life spokesperson declined to comment on the issue, while a Future Group spokesperson denied such talks were on.
Though details of the structuring and valuation were still being worked out, the sources said the plan was Generali would take 26 per cent stake in the merged entity, Reliance Capital would have 51 per cent and Future Group the remaining 23 per cent. Subsequently, the new entity might look to divest stake to raise Rs 1,200-1,500 crore. But considering the FDI cap of 26 per cent in the sector, the domestic shareholders will then have to dilute their equity further.
The sources added Future Group had planned to raise Rs 1,000 crore by monetising its two insurance ventures. Future Group’s general insurance arm is the larger business, as it had grown its premium income 53 per cent to Rs 938 crore during 2011-12 from Rs 612 crore collected in the previous financial year. The total share capital of Future Generali India was Rs 512 crore as on December 31, 2011.
An investment banker privy to the developments added Reliance might not be the only party with whom Biyani has had discussions for stake sale in the insurance business and the talks might eventually not fructify in a deal. “It is part of Future Group’s strategy to divest non-core businesses, including insurance businesses. Talks are on with multiple parties and Biyani is yet to finalise a partner or a time frame for the closure for any transaction. But by the end of the year, I expect some closure, ” he said.
Reliance General is wholly owned by Reliance Capital and collected Rs 1,712 crore during 2011-12 by writing new policies, 3.5 per cent higher when compared with the previous financial year’s collection. Last year, Reliance Capital divested 26 per cent stake in its life insurance arm, Reliance Life, to Japanese insurer Nippon Life for Rs 3,000 crore.
Two years earlier, Reliance Capital had plans to merge Reliance General Insurance with Sundaram Alliance Insurance Company, a joint venture between Sundaram Group and England-based RSA, which owns 26 per cent stake in the alliance. Subsequently, it had approached the Insurance Regulatory and Development Authority. In the proposed deal, the Anil Dhirubhai Ambani Group was looking to buy out the entire stake of Sundaram Group. However, the proposed deal didn’t see the light of day, due to valuation issues.
During 2010-11, both Reliance General and Future Generali made underwriting losses. While Reliance General made a loss of Rs 342 crore, Future Generali declared a net loss of Rs 42.5 crore in April-December last year. The business, however, is expected to turn profitable this fiscal.
M&A DEALS FLOW SLOWS DOWN AMID ECONOMIC CONCERNS
MUMBAI: The Indian M&A space attracted lesser amount of deals in May amid global economic concerns, domestic worries over lack of government policy initiatives, and also on account of depreciation in the Indian rupee. There were total 68 deals (including private equity transactions) worth $3.9 billion, compared with 100 deals valued at $5.5 billion in 2011 and 72 deals amounting to $8.6 billion in 2010, according to data compiled by accountancy firm Grant Thornton. The total value of outbound deals (Indian companies acquiring businesses outside India) was $0.95 billion (8 deals) in May, compared with $2.26 billion (20 deals) and $4.00 billion (19 deals) during the corresponding month in 2011 and 2010, respectively. The total value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) was $2.10 billion (9 deals), compared with $1.32 billion (8 deals) and $3.83 billion (5 deals), respectively. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/ma-deals-flow-slows-down-amid-economic-concerns/articleshow/13921443.cms)
MINISTRY FOR SALE OF 10 PER CENT STAKE IN NFL
NEW DELHI: The ministry of chemicals and fertiliser has moved a proposal to the disinvestment ministry for 10% stake sale in National Fertilisers Limited (NFL). At present, the government owns 97.64% stake in the company. “There is a proposal to increase public holdings in NFL…. It requires approvals from various other sources… the department of disinvestment will take a final call,” said fertilisers secretary Ajay Bhattacharya. Since the government failed to meet its disinvestment target of R40,000 crore in 2011-12, the target is pegged at only R30,000 crore this year. Last year, the government managed to garner only around R14,000 crore. (For details log onto : http://www.financialexpress.com/news/ministry-for-sale-of-10-stake-in-nfl/959296/)
FAME SET TO MERGE WITH INOX LEISURE
MUMBAI: Multiplex chain Fame India Ltd and three of its subsidiaries are set to merge with parent firm INOX Leisure Ltd, with the company’s board expected to clear the deal in its next meeting on June 15. After the merger, Fame will likely be rebranded as INOX, said a person familiar with the matter on condition of anonymity. The merger will create the country’s largest multiplex chain with 257 screens. At present, the Anil Ambani-led Reliance Group’s BIG Cinemas leads the pack in the country with 252 screens. PVR Ltd has around 162 screens, while Cinemax has 141 screens. “Apart from the multiplex chain, the subsidiaries of Fame like Fame Motion Pictures Ltd, Big Picture Hospitality Services Pvt Ltd and Headstrong Films Pvt Ltd will also be merged with INOX,” said the person quoted above. The company spokesperson could not be reached for comments on the issue. Deepak Asher, director of INOX did not respond to calls and text messages sent by Business Standard. (For details log on to : http://www.business-standard.com/india/news/fame-set-to-mergeinox-leisure-/476697/)
EMBASSY, MAINI GROUP FORM LOGISTICS JV TO BUILD WAREHOUSES
BANGALORE: Bangalore-based Embassy Property Developments Ltd and Maini Group, electric car pioneers in Indiawith the Reva, have formed a warehousing and logistics joint venture company. Embassy-Maini Logistics Bangalore Pvt. Ltd will establish a logistics park on about 200 acres of land on the outskirts of Bangaloreand build ready-to-use warehouses of around 500,000 sq.ft, the companies announced on Thursday at the Global Investors Summit. Embassy, being in the real estate business, will source the land either on its own or with the help of the Karnataka government. Maini, a design and manufacturing firm that deals in high-precision engineering components, will work on the racking and fit-outs for the facilities, as it also has experience in material-handling equipment and products for warehouses. (For details log on to : http://www.livemint.com/2012/06/07211402/Embassy-Maini-Group-form-logi.html?atype=tp)
NDTV-UB GROUP BRAND ASSOCIATION UNLIKELY TO BE RENEWED
MUMBAI: A unique brand association between NDTV Ltd and the UB Group may not be renewed this year at the end of its five-year term, according to people familiar with the development at NDTV and UB Group. The exercise involved setting up lifestyle channel NDTV Good Times in 2007, using part of the tagline “king of good times” associated with the UB Group’s Kingfisher brand as well as promoter Vijay Mallya. The UB Group committed around Rs.100 crore over a period of five years to the channel. The tie-up “leverages the editorial integrity and quality of the NDTV group and the strong lifestyle appeal of the Kingfisher brand”, according to the channel’s website. The UB Group won’t renew the contract because of its financial situation, said one of the persons cited above. The UB Group’s debt-laden Kingfisher Airlines Ltd has cut flights and has been forced to delay salary payments. The person wasn’t aware of the fate of the “Good Times” branding contained in the channel’s name. (For details log onto : http://www.livemint.com/2012/06/07223149/NDTVUB-Group-brand-associatio.html?atype=tp)
MUKESH STEPS ON THE GAS
MUMBAI: Mukesh Ambani is upping the ante on investment and growth projections for his flagship Reliance Industries (RIL) even in the backdrop of what he has termed two unprecedented economic shocks in the last five years. Seemingly unperturbed by the regular run-ins with the petroleum ministry and the regulators, the RIL chairman and managing director aims to double the company’s operating profit in the next five years from Rs 34,508 crore in FY12, as it boosts spending and capacity in its core energy business and builds newer retail and telecom operations. Ambani talked about a proposed investment of Rs 1 lakh crore across businesses. “We are now ready for the next period of growth at Reliance by investing across all our core businesses in new capacity and margin improvement projects,” Ambani told shareholders at RIL’s 38th annual general meeting (AGM). The headline numbers were also meant to pacify the company’s retail and institutional investors sceptical of “unrelated investments” and diversifications into media, hospitality or education. Many of these investors also expressed their apprehensions publicly at the AGM. (For details log on to : http://www.business-standard.com/india/news/mukesh-stepsthe-gas/476703/)
HINDUSTAN UNILEVER PLANS TO EXTEND LUX BRAND INTO THE DEODORANT SEGMENT
MUMBAI: Hindustan Unilever plans to extend Lux brand into the deodorant segment, making Indiathe only country where the world’s largest selling soap brand is being launched as a deodorant. “Lux stands for the kind of invigorating fragrance it envelops you while having a bath; why can’t that be extended outside the bathroom?” Kedar Teny, category head of deodorants at Hindustan Unilever, says. Unilever, the Anglo-Dutch parent of HUL, has so far extended the 112-year-old Lux brand into a range of body and hair wash products. It could consider extending the brand into deodorant space in other markets depending on the response it gets on the Indian turf. The Rs 1,300-crore deodorant market in Indiais growing rapidly. Hindustan Unilever has a strong presence in the male fragrance deodorant space with its Axe being the largest deodorant brand in India. The country’s largest FMCG firm recently launched a range of body sprays under the Denim brand. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/hindustan-unilever-plans-to-extend-lux-brand-into-the-deodorant-segment/articleshow/13913518.cms)
ADANI SEEKS PARTNERS FOR $2-BILLION AUSTRALIAN RAIL LINE
Melbourne: Adani Enterprises will look for partners to help fund a $2 billion coal rail line from Australia’s GalileeBasinto the Pacific Ocean, it said on Thursday, after winning state approval for its proposed route. The approval is crucial to Adani’s $10-billion coal and rail project and potentially other projects in the untapped GalileeBasin, where five major mines could produce more than 200 million tonnes of coal a year. The biggest hurdle to the GalileeBasinprojects is affordable access to port, as the region is much further from the coast than Queensland’s other coal-rich basins. “We are eager to cooperate with third parties in such development but also keep open the option of going it alone as deemed in our best business interests,” Adani Group Australia chief executive Harsh Mishra said in a statement. At current prices for thermal coal, analysts question whether the GalileeBasinmines would be economically feasible, which could make it tough for companies like Adani to raise funding for their projects. (For details log on to : http://www.financialexpress.com/news/adani-seeks-partners-for-2billion-oz-rail-line/959332/)
TATA STEEL TO SET UP R30K-CRORE PLANT IN KARNATAKA
BANGALORE: Tata Steel on Thursday announced plans to set up a R30,000 crore steel plant in Karnataka at the government-sponsored Global Investors’ Meet (GIM) 2012. The six million tonne per annum capacity plant would come up up Haveri district, Tata steel vice-chairman B Muthuraman said at the inaugural GIM function. Earlier, the Global Investors Meet (GIM) 2012, aimed at attracting investors to the state, kicked off on Thursday with the chiefs of some of the country’s top industrial houses announcing follow-on investments in the state while MoUs were inked for several new opportunities. The second edition of the two-day event is targetting investments of over R6 lakh crore in key sectors such as energy and infrastructure. (For details log on to : http://www.financialexpress.com/news/tata-steel-to-set-up-r30kcr-plant-in-ktaka/959265/)
MYNTRA SET TO FASHION ITS OWN PRIVATE LABELS
KOLKATA: Online retailer Myntra.com is set to introduce its own range of merchandise, primarily in apparel, around November this year. At present, Myntra retails over 300 brands including Levis, Lee, Wrangler, Adidas, Arrow and Puma. Mr Ashutosh Lawania, co-founder, Myntra, said the company will start its private labels with apparels, and depending on the response move into segments such as accessories. “We are yet to decide on the pricing and brand names for the apparel range. It might have a separate name or be eponymous to our website,” he told reporters here on Thursday. The e-tailer is banking on higher margins, of around 50 per cent, on introduction of private labels. e-tailers Zovi.com and Freecultr have their own range of private labels. Myntra, Mr Lawania said, was also in the process of developing a virtual trial room. (For details log on to: http://www.thehindubusinessline.com/todays-paper/tp-marketing/article3502442.ece)
EMIRATES HOLIDAYS EYES GROWING AFRICAN BUSINESS FROM INDIA
NEW DELHI: Emirates Holidays, the holiday packages arm of Emirates Airlines, on Thursday said it has a bullish outlook on its business in Africa from India. “We expect the whole of Africa region has a significant potential to grow tourism opportunities from India,” Mr Nadeem Ulde, Emirates Holidays’ business development manager for India, told IANS. “Countries like South Africa, Zimbabweand Zambiaare major attractions that we are looking at growing significantly through our packages. We will soon start a special campaign to promote travel to regions such as South Africa,” he said. Mr Ulde was speaking at the launch of the company’s expanded travel brochure with eight new destinations that can be reached from India. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-marketing/article3502440.ece)
RELIANCE’S 4G VENTURE TO FOCUS ON DIGITAL SERVICES
MUMBAI: Reliance Industries’ fourth generation (4G) based broadband venture will focus on offering digital services to customers. Infotel Broadband Services, a subsidiary of Reliance, is the only player with 4G spectrum in all the 22 circles. “We plan to provide an ever growing range of digital services in key domains of national interest such as education, healthcare, security, financial services, government-citizen interfaces and entertainment,” said Mr Mukesh Ambani, Chairman and MD, Reliance Industries Ltd (RIL), speaking at the company’s annual general meeting on Thursday. “We are currently finalising our plans to offer services on a nation-wide basis,” he said without giving a specific launch date. Reliance Industries Ltd (RIL) had acquired 95 per cent equity stake in the Infotel in 2010. Reliance plans to use Long term evolution (LTE) technology for its country-wide network deployment to provide connectivity and related digital services to its customers, said the company in its annual report. This technology is said to bring down unit costs of delivering bandwidth and improve spectrum efficiency. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article3502412.ece)
L&T TO DEVELOP RS 4,800-CRORE ROAD PROJECTS
MUMBAI: L&T said it has won a bid to develop two contiguous road projects of 484 km at a cost of Rs 4,800 crore. L&T Infrastructure Development Projects Ltd, which bagged the National Highways Authority of India contract, said it will be executed through special purpose vehicles. The concession period is 20 years, including 30 months for construction. The two road sections are part of NH-6 which connects Suratto Kolkata and is a prominent East-West connector. The NH-6 passes through States such as Odisha, Chhattisgarh, Maharashtra and Gujarat. The stretches extend from Amravatito Jalgaon (275 km, project 1) and Jalgaon to Maharashtra, near Surat(209 km, project 2). L&T said the projects are the longest stretches to be offered in Maharashtraon a build-operate-transfer basis. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3502375.ece)
GOVT DRAWS PLAN TO AVOID COSTLY COAL IMPORTS
NEW DELHI/KOLKATA: The government might have asked Coal India Ltd (CIL) to resort to imports to smoothen coal availability for fuel-starved power plants, but the state-owned miner has chalked out a detailed plan to avoid costly shipment of the commodity or to at least keep these to a minimum. Its latest strategy, formulated with coal ministry’s brass, is to meet the mammoth supply obligation by ramping up domestic production. The multi-pronged strategy includes quickly ramping up production to 615 million tonnes annually by 2017. The target is to increase production up to 40 per cent in the next five years, to keep the shortfall to a minimum. This will be achieved by strict mine-level monitoring of performance and pushing for quicker ecological clearances and land acquisition, by seeking intervention of higher authorities, including the Planning Commission and the Prime Minister’s Office. “Imports would not be needed to meet new coal supply obligations in the 12th Plan. We have drawn an elaborate plan with Coal India,” a senior coal ministry official, who did not wish to be named, told Business Standard. (For details log on to : http://www.business-standard.com/india/news/govt-draws-plan-to-avoid-costly-coal-imports/476689/)
HOUSE PANEL WANTS CSR MANDATORY IN COMPANIES BILL
NEW DELHI: A parliamentary panel has recommended the Companies Bill make it mandatory for companies above a particular turnover or net worth threshold to allocate two per cent of their net profit towards corporate social responsibility (CSR). Parliament’s standing committee on finance, headed by Bharatiya Janata Party leader Yashwant Sinha, on Thursday finalised its report on the Companies Bill, 2011. The report would be given to Lok Sabha Speaker Meira Kumar soon. The committee wanted the government to have a clause in the Bill stating companies with net worth above Rs 500 crore or an annual turnover of over Rs 1,000 crore would have to earmark two per cent of their average net profits to CSR. The average net profits would be for the three-year period preceding the year in which the CSR allocation is to be spent, sources privy to the development told Business Standard. (For details log on to : http://www.business-standard.com/india/news/panel-wants-csr-mandatory-in-companies-bill/476714/)
INDIA REDUCES MAY IRAN OIL IMPORTS BY 38 PER CENT
NEW DELHI: Indian refiners cut imports from Iranby 38% in May from a year ago, tanker discharge data showed, in a second month of steep reductions as they switch suppliers to cushion the impact of new USsanctions on Tehran. The cutbacks raise New Delhi’s chances of winning a waiver similar to that granted by the United Statesto Japanand some European countries after “substantial” reductions in their imports. Indiais discussing with Washingtonan exemption from the sanctions, which focus on banking and are being imposed over Iran’s disputed nuclear programme, a source had said. Chinaand Indiaare Iran’s biggest crude clients and reductions in their purchases are crucial to Western attempts to crank up the pressure on Tehran. Neither has officially sought a waiver, although both have cut volumes. (For details log on to: http://www.financialexpress.com/news/india-reduces-may-iran-oil-imports-by-38/959266/)
MUKESH AMBANI FACES VOLLEY OF QUERIES AT SHAREHOLDER MEET
MUMBAI: Mukesh Ambani’s optimism at the 38th annual general meeting of Reliance Industries (RIL) failed to rub off on the company’s shareholders. The majority of these shareholders quizzed Ambani on a host of issues — dipping gross refining margins, plummeting gas reserves at the Krishna-Godavari (KG) basin, impending arbitration with the government, the company’s share buyback policy and investment by the company in East India Hotels (EIH), which operates the Oberoi Hotels & Resorts and Network 18. “I am deeply perturbed with the falling gas output of RIL’s KG-D6 gas field. Why doesn’t RIL hire some expert to check the falling output? BP (British Petroleum) has been on board for over a year now, but nothing much has been achieved,” said S Mehta, an RIL shareholder who owns 200 shares. “RIL’s investments in EIH and TV18 are not good. Its growth path has slowed, and the company has run into various problems with the government,” said P Mane, another RIL shareholder. (For details log on to : http://www.business-standard.com/india/news/mukesh-ambani-faces-volleyqueries-at-shareholder-meet/476706/)
AMBANI MAY BE ABLE TO WALK THE TALK: ANALYSTS
MUMBAI: So far, RIL investors have not had an easy year. Apart from operational issues in the exploration business, one of the biggest disappointments was the 9.3 per cent fall in RIL’s operating profit (excluding other income) in FY12 to Rs 34,508 crore. It was thus of little surprise that Chairman Mukesh Ambani tried to pep up the mood at the company’s annual general meeting on Thursday, announcing the company would double its operating profit in about five years — from Rs 34,500 crore to Rs 70,000 crore by 2017-18. Though he did not spell out how the company would achieve this, there were various indications in his speech on the levers that could deliver the goods. First, the company is slated to double its petrochemicals capacity and cut costs in the refining business. Deven Choksey, managing director, K R Choksey Securities, feels Ambani would walk the talk. “Half the incremental profits would come from the three traditional business lines—refining, exploration and petrochemicals—with telecom and retail accounting for the remaining profits,” he said. Analysts believe for each of its businesses, the company has underlined triggers that could boost profitability. However, given the global slowdown and the slackening demand, it might be difficult to improve the profitability of the refining business over the next few years. The company is thus focusing on cutting costs. While there is no capacity addition in the refining business, the company is setting up one of the largest petroleum gasification facilities in the world to convert petroleum coke to synthetic gas. (For details log on to : http://www.business-standard.com/india/news/ambani-may-be-able-to-walktalk-analysts/476709/)
TATA TELE SERVICES WRITES TO DOT OLD OPERATORS BEING FAVOURED
NEW DELHI: Tata Teleservices, which offers both GSM and CDMA-based mobile services, has said a proposed telecom policy favours early incumbent GSM operators. It said the policy discriminated against dual-technology operators, making it unviable for them to do business. “With such a policy, dual-technology operators will have no choice but to terminate their CDMA services and take huge write-offs on all their past investments,” Tata Teleservices Managing Director N Srinath said in a letter to the Department of Telecommun-ications (DoT) Secretary R Chandrashekhar. The Tatas were responding to their discussions with Communications Minister Kapil Sibal and Chandr-ashekhar on May 28, in which Tata Group Chairman-designate Cyrus Mistry and Srinath were told by the DoT that it was working on a telecom package on the lines of one in 1999, which would be beneficial for the operators as well as the government. (For details log on to : http://www.business-standard.com/india/news/tata-tele-services-writes-to-dot-old-operators-being-favoured/476711/)
INDIA‘S AVIATION HUB DREAMS FACE DUBAI, SINGAPORE CHALLENGE
MUMBAI/NEW DELHI: The civil aviation ministry will, by the end of this financial year, provide the policy support needed by airports and airlines to create hubs in India. But the airports would have to go out and market themselves, bring in traffic and make themselves hubs, said a senior ministry official, who did not want to be identified. The ministry has issued a paper on the subject. Indian airports have been at a disadvantage because of high taxes, cumbersome visa and foreign exchange norms, losing out to peers in the Gulf. The civil aviation ministry hopes addressing these will help Indian airports attract a large pie of the 28 million annual feeder traffic from neighbouring countries and inter-continental routes linking Europe and Southeast Asia. (For details log on to : http://www.business-standard.com/india/news/indias-aviation-hub-dreams-face-dubai-singapore-challenge/476710/)
NTPC BLASTS GOVT AS COAL SHORTAGE TRIPS OUTPUT
NEW DELHI: Arup Roy Choudhury, chairman of India’s largest power producer NTPC, on Thursday blamed the government for chronic fuel shortages that have exacerbated the country’s energy crisis and put off steps to increase power generation. Choudhary said a climate of fear following a spate of scams had frozen officials into inaction on environmental clearances, land buys and allotment of coal mines. “Public sector companies like mine are under tremendous pressure because of the environment of suspicion and mistrust,” Choudhury told Reuters in an interview. “It becomes a game of snakes and ladders, where you overcome a few steps, (and then) suddenly you find yourself at the bottom of the heap, trying to work yourself through again.” Choudhury reiterated that NTPC, which owns about a fifth of India’s generation capacity, would miss its target of adding 25,000 MW to capacity by 2017 and was now aiming for just 14,500 MW. (For details log on to: http://www.financialexpress.com/news/ntpc-blasts-govt-as-coal-shortage-trips-output/959399/)
FMCGs USE NEW WAYS TO WOO BHARAT AS RURAL DEMAND GROWS
MUMBAI: Recognising a greater share of the rural markets to their revenues and higher consumption levels in those markets driven by government job guarantee schemes, FMCG majors Hindustan Unilever (HUL), Tata Global Beverages (TGBL) and ITC are strengthening their rural initiatives, which include direct marketing and brand activations. “Our rural initiative Gaon Chalo’s footprint is being extended to eight more states this year,” said Percy Singaporia, managing director at TGBL. “This is a self-employment scheme for women in villages. Under this scheme, over 70,000 sales personnel are going door-to-door, selling our products.” Gaon Chalo was prototyped in a few districts of Uttar Pradesh to begin with and thereafter was piloted in some other districts in the state. “As a model, the advantages are limited fluctuations in sales due to direct access to the rural retailers, cost-effective brand building platform and flexibility to address the complexities of rural markets,” he said. In the branded tea segment, TGBL has maintained a market volume and value leadership with 19.6% and 21.3%, respectively for fiscal 2012, according to Siganporia. (For details log on to: http://www.financialexpress.com/news/fmcgs-use-new-ways-to-woo-bharat-as-rural-demand-grows/959327/)
RELIANCE RETAIL REVENUE SEEN AT RS. 50K CRORE BY 2016
MUMBAI: Reliance Retail, the retail arm of the diversified Reliance Industries (RIL), aims to grow its revenues by more than five times to R40,000-50,000 crore by 2016, its chairman Mukesh Ambani said at the company’s annual general meeting (AGM) in Mumbai on Thursday. At a consolidated level, Reliance Retail had posted operational revenues of R7,599 crore in fiscal 2012, representing a 25% growth over the previous year, according to the company’s annual report. Highlighting retail as an important growth driver for RIL in coming years, Ambani said, “We are investing aggressively in this business. We are targeting five-six times of existing revenue and would turn profitable within this time period.” (For details log on to : http://www.financialexpress.com/news/reliance-retail-revenue-seen-at-rs.-50k-cr-by-2016/959306/)
QUEENSLAND TO HAVE NO ROLE IN GVK COAL MINE APPROVAL BID
MELBOURNE: Australian government on Thursday said that coal-rich Queenslandwill have no further role in the massive Alpha coal mine approval process following a dispute with India’s GVK Group over environmental issues. The federal and Queenslandgovernments have been warring for more than a week over the approval process for the $6.36-billion coal mine in central Queensland. Queensland’s deputy premier Jeff Seeney and environment minister Andrew Powell met with federal environment minister Tony Burke on Thursday morning in Sydneyto discuss the dispute. “The commonwealth will continue to deal with what it says are outstanding environmental issues Queenslandfailed to consider in its assessment,” AAP news agency reported. Queenslandgovernment still has to come back by next week and show cause why it should not be suspended from a bilateral agreement aimed at streamlining major environmental approvals. (For details log on to : http://www.financialexpress.com/news/no-role-for-oz-state-in-gvk-project/959318/)
PM KEEN, BUT INFRA DEVELOPMENT HELD UP IN PROCEDURAL DELAYS
NEW DELHI: By considerably enhancing the capacity addition targets for infrastructure sectors, prime minister Manmohan Singh has sent out a clear message of urgency to all stakeholders. But he overlooked the problem of huge procedural delays that plague public-private partnership (PPP) projects, especially in sectors like ports, airports and railways. These sectors, along with the power sector, which had been a laggard until some pace was gathered, are principally to blame for the slippages in the past years. For example, the prime minister targets to set up two new major ports on the East Coast in 2012-13, besides promising 42 projects, entailing investments to the tune of R14,500 crore and a capacity of 244 million tonne in the year. This is clearly an uphill task, especially given the fact that lead time between conception and award of port projects in the PPP sector is roughly two years. It takes a minimum of three years to build a new major port. Says K Mohandas, former shipping secretary: “There are avoidable delays (in project execution). Approval procedures can be considerably simplified.” (For details log on to: http://www.financialexpress.com/news/pm-keen-but-infra-development-held-up-in-procedural-delays/959204/)
INDIAN FILM INDUSTRY LOOKS GOOD IN GLOBAL PECKING ORDER
NEW DELHI: It is amazing what even a little appreciation from Cannesdoes to our film critics. They suddenly discover ‘Indian films.’ So, every critic worth his salt has been writing about India’s presence at Cannesthis year. But Indian cinema has been doing well even before it was discovered. That explains why, the Indian film industry tops almost every chart in Focus 2012, a report on world film market trends. Indiamakes the largest number of films, we buy the highest number of tickets and we have the second largest screen count. Considering how many films we watch, we score very badly on box-office revenues. In 2011, Indians paid a total of $1.47 billion to buy 2.7 billion tickets. This puts Indiaat sixth position, way behind Chinaand the others. This is largely because average ticket prices in Indiaare among the lowest in the world. These, among other findings are part of Focus 2012, released by the European Audiovisual Observatory every year. It shows that the global box-office grew a healthy three odd per cent to hit $32.6 billion in 2011. (For details log on to: http://www.business-standard.com/india/news/indian-film-industry-looks-good-in-global-pecking-order/476724/)
FINANCIAL SERVICES SECTOR’S IT SPEND TO GROW 17% THIS YEAR: GARTNER
NEW DELHI: Indian financial services industry will spend Rs 37,700 crore on information technology products and services in 2012, an increase of 17.4 per cent over 2011 at Rs 32,100 crore. According to independent research firm Gartner, the forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications. Telecommunications equipment and services represents the biggest spending category, and it is forecast to reach Rs 13,100 crore in 2012, up from Rs 11,300 crore in 2011, it said. However, spending on software is expected to grow the fastest in 2012 to Rs 3,400 crore in 2012, up 28 per cent of about Rs 2,700 crore in 2011. This is being driven by high growth in enterprise software applications such as financial and administration packages and customer relationship management, Gartner said. (For details log on to: http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article3502423.ece)
INDIA PITCHES STRONGLY FOR SCO MEMBERSHIP
BEIJING: India on Thursday made a strong pitch for membership of the six-member Shanghai Cooperation Organisation (SCO) that brings together Asian and Central Asian states, underlining the bloc’s role in dealing with key challenges and opportunities in the region, including stabilizing Afghanistan, combating terrorism, energy cooperation and increasing connectivity among member nations. External affairs minister S.M. Krishna, in his speech at the one-day SCO meet’s extended session, noted that most of the SCO members were neighbours of Indiaor belonged to its extended neighbourhood. Russia, China, Kazakhstan, Kyrgyzstan, Tajikistanand Uzbekistanare members of SCO. “India, on its part, has been participating at all SCO meetings open to the observers,” Krishna said, referring to India’s regular presence at SCO meetings since being admitted as an observer in 2005. “By doing so, we have shown our strong willingness to be meaningfully associated with this grouping. We believe SCO can potentially play a much larger role in the future, both for the security and prosperity of our region.” (For details log on to: http://www.livemint.com/2012/06/07200931/India-pitches-strongly-for-SCO.html?atype=tp)
HOUSE FINANCE PANEL FOR CLEARING ‘AUDITOR’, ‘AUDIT FIRM’ DISTINCTION
NEW DELHI: The Parliament Standing Committee on Finance wants the current ‘tenuous’ distinction between auditors and audit firms tightened in the new Companies Bill. Apparently keeping in mind the Satyam controversy, the panel also wanted a cap on the number of companies for which a person can be auditor. “The clause may thus clearly provide for the maximum number of companies a person can be appointed as auditor of, as provided for in the case of directors of companies,” the report, which will be tabled in Monsoon session of Parliament, said. The committee also endorsed the provision prescribing liabilities for auditors and extending them to audit firms as well, since the distinction between the two, according to the panel, is rather tenuous. Nevertheless, the panel supported the existing system of appointment of auditors by shareholders at every annual general meeting to be continued. This should be done in the interest of accountability to shareholders, the committee said in its report on Companies Bill, 2011. (For details log on to : http://www.thehindubusinessline.com/todays-paper/article3502489.ece)
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