MUMBAI: Bajaj Auto, India’s second-largest two-wheeler maker, has tightened its hold on KTM Power Sports by buying another 6.3%, taking it stake in the Austrian motorcycle to a little over 47%.
ET learnt that the company purchased this stake from one of the key stake holders through an open market transaction recently. The purchase was made through Bajaj Auto International Holdings ( BAIHBV), a Netherlands-based wholly-owned subsidiary of Bajaj Auto.
A senior Bajaj official confirmed the development, but declined to share the details, as the firm is bound by confidentiality agreement.
Bajaj Auto is the second-largest shareholder in KTM. Other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Bajaj Auto and KTM are working on a few joint development projects.
In a recent interview to ET, Rajiv Bajaj, MD, Bajaj Auto, said that the company doesn’t want to become the majority shareholder.
“We will be buying more shares to up our stake from 40%. However, we do not want to be the majority stakeholder as to convey the perception of exclusivity and premiumness,” he said. It’s better that Bajaj doesn’t become its majority stake holder, Bajaj added.
Bajaj Auto, which picked up a stake in KTM in 2007 by buying a 14.5% stake for about Rs 300 crore, has been consistently hiking its stake by buying more shares from the open market.
Even as the market for motorcycles in Europe and USA shrank by 5%, KTM successfully managed to increase its turnover last year by 13.4% to 526.8 million. The overall volumes for 2011 saw a jump 22.4% at 81,200 vehicles. Mirroring the rise in market share, the net profit has kept growing by 30.2% to 20.7 million.
The company’s supervisory board has approved a five- year bond issue to raise 75 million subject to regulatory approval.
“It is a positive move and in line with the company’s stated intent of working closely with KTM. This increase in stake will develop further confidence among investors and boost their integration process,” said Umesh Karne, auto analyst at BRICS Securities.
Already both the partners are jointly working on a series of platforms and engines which will offer cost and quality benefits. Not only at the back-end, Bajaj Auto and KTM plan to use each others’ global network to boost volumes and turn India into a significant manufacturing base, which will boost KTM’s profitability.
Bajaj Auto supplied about 11,000 out of 81,000 bikes that KTM sold in 2011. This year the company plans to scale the numbers up to 40,000 KTMs and eventually produce 50% of all KTM motorcycles by 2015.
During the first two months this year, KTM pipped BMW as the largest selling brand in Europe, with its new Duke 125 & 200 doing wonders for the company.
During January and February, KTM sold close to 8,400 units against BMW’s cumulative sales of around 8,250-8,300 units. KTM chief executive Stefan Pierer recently said the company aims to sell 25,000-30,000 motorcycles in India this year and over 200,000 units globally in 2015.
Bajaj-KTM have already launched KTM Duke 200 in India this January and are working towards foraying into Brazil and the other emerging markets such as Malaysia and Indonesia. Cross Industries and Bajaj Auto had entered a joint venture in 2008, having agreed for manufacturing the KTM 125cc motorcycles in India, and selling them in European markets.
OIL INDIA EYES CHESAPEAKE’S MISSISSIPPI ASSET: SOURCE
NEW DELHI: Indian oil and gas producer Oil India Ltd is looking at buying a stake in Chesapeake Energy Corp.’s Mississippi Lime formation in Oklahoma, a source with knowledge of the matter said on Tuesday. “Oil Indiais examining this and will shortly send a team to the US,” the source said, adding it is too early to comment on the size of the stake that Oil India could buy. Oil Indiawants to invest between $1 billion and $1.2 billion for acquiring overseas oil and gas producing assets, its finance director said in October. Chesapeakelast month said it expects to strike a joint venture in this quarter for its unconventional liquid-rich Mississippi Lime play covering 2 million acres. The source said Oil Indiamay partner other state-run firms like Oil and Natural Gas Corp in buying a stake in the Mississippi Lime play. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/oil-india-eyes-chesapeakes-mississippi-asset-source/articleshow/12521268.cms)
CAIRN ENERGY TO ACQUIRE AGORA OIL & GAS FOR $450 MILLION
NEW DELHI: Edinburgh-based Cairn Energy Plc today said it will acquire Norwegian oil firm Agora Oil & Gas for $ 450 million. This is Cairn’s first major deal after selling out majority stake in its Indian unit to London-listed mining group Vedanta Resources, and follows its strategy of reducing exposure to exploration in Greenlandwhere most of its assets are located. “Cairn is pleased to announce the acquisition of Agora subject to regulatory approval, a private Norwegian company with non-operated, exploration, appraisal and development assets in the United Kingdomand Norwegian North Sea,” the company said in a statement. The acquisition of Stavanger, Norway-based Agora, which is owned by Lord Rothschild’s investment trust, would be funded through a combination of 43 per cent cash and 57 per cent Cairn shares. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/cairn-energy-to-acquire-agora-oil-gas-for-450-million/articleshow/12519959.cms)
FUTURE GROUP CLOSES IN ON DEAL TO DIVEST NON-CORE ASSET
NEW DELHI: Debt-ridden Future group which is in the process of divesting stake in non-core businesses, including exiting from financial services, is understood have finalised a deal and an announcement is expected shortly. According to sources, the group may announce at least one of the many deals that the group has been working in the next one week. When contacted, Pantaloon Retail Joint Managing Director Rakesh Biyani told PTI: “We have made significant progress in encashing investments in non-core retail.” He, however did not provide details. Pantaloon Retail is the flagship company of the Future Group. The group’s core retail business, with formats like Big Bazaar, Food Bazaar, e-zone and Pantaloon, has a debt of over Rs 5,000 crore. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/future-group-closes-in-on-deal-to-divest-non-core-asset/articleshow/12520418.cms)
INDIA INC’S M&A DEALS DOWN BY 50% IN JANUARY-MARCH TO $9.4 BILLION
NEW DELHI: The merger and acquisition (M&A) deals by India Inc witnessed a decline of about 50 per cent year-on-year to $ 9.4 billion in the January-March quarter, says a report. According to Ernst & Young’s latest transactions quarterly report, a total of $ 9.4 billion deals were announced in the January-March quarter of calender year 2012, nearly half of the total deal value witnessed in the year-ago period. In terms of deal count, 202 deals were announced as against 253 deals in January-March 2011, a fall of about 20 per cent. On a quarter-on-quarter basis, however, an uptrend was witnessed both in terms of number and value of deals. As per the report, during January-March 2012, over 22 per cent increase was seen in the number of deals and the deal value jumped 4.5 times over the October-December 2011 quarter. (For details log on to : http://economictimes.indiatimes.com/news/economy/finance/india-incs-ma-deals-down-by-50-in-january-march-to-9-4-billion/articleshow/12520486.cms)
RIL AND SIEMENS MAY SNAP SECURITY-SOLUTIONS VENTURE
MUMBAI: The grand partnership for homeland security between Reliance Industries and global engineering and electronics giant Siemens may be coming apart in just six months, even before it could formally take off. Serious differences are believed to have cropped up over strategic and operational issues from technology transfer and sharing to equity structuring of the special purpose vehicles (SPVs) that were planned. The signs of stress became apparent when both Siemens and RIL did not bid for the much publicised Mumbai homeland security and video surveillance makeover project — the largest in India so far — either as consortium partners or separately. (For details log on to : http://www.business-standard.com/india/news/rilsiemens-may-snap-security-solutions-venture/470070/)
RELIANCE, HUL TO MARKET BEAUTY & HEALTH TOGETHER
NEW DELHI: The country’s two top companies, oil-to-retail giant Reliance Industries Ltd (RIL) and FMCG major Hindustan Unilever Ltd, have got into a tie-up to collaborate in setting up a chain of beauty and wellness formats across the country. Their stated aim is to bring these products to the masses. The beauty and wellness formats will be started in Reliance Hypermarkets in May. These will begin in Mumbai and be expanded to 40 hypermarkets across the country in the first phase of three months. Reliance, which is planning to open a mart every week, will add this format in each store. The two companies have developed an innovative concept of assisted selling under which specialists in areas such as skin care, hair care and ayurveda — trained mostly by Unilever — will help consumers make the right choices while buying products. They will have the latest technology to address the requirements of consumers on skin, dental care and hair care, among others. Executives involved in the project say currently consumers go to lifestyle stores to buy such products. The stores do not have a wide array of products and those available are expensive, they add. (For details log on to : http://www.business-standard.com/india/news/reliance-hul-to-market-beautyhealth-together/470068/)
DHARAMPAL SATYAPAL GROUP TO INVEST RS 150 CRORE FOR FORAYING INTO CONFECTIONERY BUSINESS
NEW DELHI: Dharampal Satyapal (DS) Group that sells consumer goods under brands like Catch and PassPass, today said plans to invest Rs 150 crore for its foray into confectionery segment. “DS Group will be investing around Rs 150 crore in setting up of this new business that will add to the topline of the group in its first year,” the group said in a statement. It has launched ‘Chingles’ chewing gum under the PassPassbrand umbrella as the first step of getting into the confectionery market. “The leading brand of DS Group, PassPassshall now encompass a broader portfolio of confectionery with Pass Pass Chingles as the first offering,” the company said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/dharampal-satyapal-group-to-invest-rs-150-crore-for-foraying-into-confectionery-business/articleshow/12518692.cms)
INDORAMA INDUSTRIES TO INVEST RS.1,000 CRORE IN HIMACHAL PROJECT
CHANDIGARH: Indorama Industries, which claims to be the largest producer of polyester in the world, on Tuesday said that it is investing Rs.1,000 crore at its new plant in Himachal Pradesh’s industrial town of Baddi. Indorama business head R.D. Gupta told reporters here that the company had already set up a Spandex manufacturing plant of 5,000 MT (metric tonnes) per annum capacity for the first time in the country with an initial investment of Rs.400 crore. “The company intends to expand the capacity to 15,000 MT per annum in two phases by investing total Rs 1,000 crore in three phases. This is a state-of-the-art manufacturing set up equipped with zero-discharge facility as well as rain water harvesting facility,” Gupta said. Indorama Industries Limited is a subsidiary of the Singapore-based Indorama Corporation, an $8 billion company with business diversified in polyester fiber, filament yarns, spun yarns, fabrics and other material. It has 38 manufacturing plants in 19 countries and a customer base in over 90 countries. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/garments-/-textiles/indorama-industries-to-invest-rs-1000-crore-in-himachal-project/articleshow/12519235.cms)
TAFE TO INVEST RS 180 CRORE FOR EXPANSION
CHENNAI: Tractors and Farm Equipment Ltd (TAFE) plans to invest Rs 180 crore to expand capacity in this fiscal. The Rs 8,000-crore company, part of the Chennai-based Amalgamations group, has four plants in Indiawith a capacity to produce over 1.8 lakh tractors a year. It also has a 15,000-unit facility in Turkey. It is now setting up a new facility in Maduraiwith an investment of Rs 100 crore. This plant will produce 60,000 units. Thus, by the end of the current year, the company’s total capacity in Indiawill be 2.5 lakh units. It also proposes a Rs 40-crore facility to produce other harvest implements. This facility will, most probably, be located in Chennai. Besides, it plans to invest Rs 40 crore in some backward integration projects including a painting unit in Turkey. Addressing a press conference here today, Ms Mallika Srinivasan, Chairman, said that “structural changes in the farm sector,” such as shortage of labour and easy access to credit, would lead to more mechanisation. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3278410.ece)
FIPB TO VET PHARMA FDI AS COMPETITION COMMISSION OF INDIA NEEDS TIME
NEW DELHI: The government is grappling with regulating stake acquisition of 74% or more by foreign pharmaceutical firms in local drug companies even as the six-month deadline set by Prime Minister Manmohan Singh for Competition Commission of India (CCI) to regulate the pharma FDI is barely a few days away. At a meeting, convened by commerce & industry minister Anand Sharma, on Thursday , it became apparent that CCI, the fair trade watchdog, is in no position to regulate FDI even though it was supposed to take over the function from April. In the wake of the PM’s directive, the government realized that the regulator did not have the legal mandate and ran the risk of litigation. Though a legal amendment could be done to empower CCI, the corporate affairs ministry wants an overhaul of the Competition Act at one go that is expected to take several months. To make matters worse, the health ministry that has been pushing for regulating M&As by big pharmaceutical companies to keep a check on drug prices, is not comfortable with CCI as the regulator and arguing that its mandate is to ensure free-play and public health concerns may be ignored . Given the government’s inability to sort out the mess despite intervention at the highest level, FIPB will continue to vet all FDI proposals that involve acquisition of 74% or more in Indian pharmaceutical companies. In case of greenfieldventures, 100% FDI under the automatic route will be permitted. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/fipb-to-vet-pharma-fdi-as-competition-commission-of-india-needs-time/articleshow/12515235.cms)
SWISS INTERNATIONAL HOTELS & RESORTS FORAYS IN INDIA, PLANS 45 HOTELS BY 2017
MUMBAI: The Switzerland-based Swiss International today announced its foray into Indiaand said it is planning up to 45 hotels by 2017, in business as well as five star categories. “We are looking at 50 hotels across Indiaand south Asia. Of this, around 40-45 hotels will be in India and for the rest we are looking at countries like Sri Lanka, Maldives, Nepal Pakistan, Bangladesh and Bhutan. Overall, we are looking at 6,000 rooms in three, four and five star categories,” Swiss International Hotels and Resorts South Asia, chairman and managing director Anupam Narayan told reporters here. Out of this, the company is planning about 40-50 per cent to be under the five star category and about 30 per cent under the business or four star category, he said, adding that Swiss International is also looking at managing resorts probably in Kerala and Goa. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/hotels-/-restaurants/swiss-international-hotels-resorts-forays-in-india-plans-45-hotels-by-2017/articleshow/12520544.cms)
FOREIGN FUND CAP IN CABLE TV TO BE INCREASED TO 74%
NEW DELHI: After months of hectic consultations among various ministries, the decks have been cleared for increasing the foreign investment cap for cable television from 49% to 74%. The news has come as a relief to the cash-strapped Indian cable distribution companies that have already committed and exhausted their funds for digitisation in the four metros. Officials in the department of industrial policy and planning (DIPP), the nodal department for handling issues related to foreign direct investment (FDI), said approvals from home and I&B ministries were required, which have been obtained. “The Cabinet is expected to take the matter for consideration shortly. Foreign investment cap in cable sector will be hiked to 74%,” a DIPP official said. As a result, foreign investment cap for digital cable operations will go up from 49% to 74% while the FDI cap will also move up to 49% (within 74%) from the current 20% (within 49%) level. (For details log on to : http://www.financialexpress.com/news/foreign-fund-cap-in-cable-tv-to-be-increased-to-74/932386/)
CIL GETS PRESIDENTIAL ORDER TO SUPPLY WHAT GOVT WANTS
NEW DELHI: In an unprecedented move, the government on Tuesday issued a presidential directive forcing state-owned miner Coal India Ltd (CIL) to supply at least 80 per cent of the quantity committed to power companies. However, the directive gave the company freedom to relax the penalty that would be payable in case of a shortfall. Currently, the company pays as penalty 10 per cent of the average cost of the overall quantum of the shortfall on 80 per cent of the committed Annual Contracted Quantity (ACQ). The company board, in its meetings last week, had put a relaxation in the 10 per cent penalty clause as a condition before the government for signing Fuel Supply Agreements (FSAs) at 80 per cent commitment. “We have agreed on this condition. In the presidential directive we have issued today, CIL has been given the freedom to choose the level of relaxed penalty at which it is comfortable and can assure supply,” coal minister Sriprakash Jaiswal told Business Standard. (For details log on to : http://www.business-standard.com/india/news/cil-gets-presidential-order-to-supplygovt-wants/470069/)
INDIA SEEKS TREATY REVISIONS TO DEAL WITH CORPORATE SUITS
NEW DELHI: Rattled by threats from foreign companies to drag Indiato international courts over breach of investment promises, the government is planning to erase a key clause in bilateral investment treaties that allows for international arbitration in order to protect itself. The government is in talks with countries to amend the investment treaties so that any supposed violation of an investment promise through Indian government action can be challenged only in Indian courts. Currently, Indiahas treaties with Singaporeand South Korea, among others, that allow firms under their ambit to challenge any adverse policy action by New Delhias a breach of investment promise in international tribunals. Since January, the government has been served a brace of legal notices by multinational companies in the telecom and coal sectors. Norway’s Telenor and Russia’s Sistema have moved court, while Vodafone has threatened “a number of courses of action, both in Indiaand internationally”. The Children’s Investment Fund, a UK-based hedge fund, too has asked its lawyers to move against Coal India. Indiahas also recently lost a case involving White Industries of Australia against Coal Indiain the International Court of Arbitration. (For details log on to : http://www.financialexpress.com/news/india-seeks-treaty-revisions-to-deal-with-corporate-suits/932407/)
GOVT ISSUES PRESIDENTIAL DECREE TO FORCE COAL INDIA FOR LONG-TERM FUEL SUPPLY TO PRIVATE POWER FIRMS
NEW DELHI/KOLKATA: The government issued a presidential decree to force Coal Indiato guarantee long-term fuel supply to private power firms, as it used its discretionary authority to trump independent directors who resisted pressure from the Prime Minister’s Office and said such pacts would harm the company. The rare government directive, issued after hectic lobbying by top industrialists such as Ratan Tata and Anil Ambani to ensure predictable supplies of coal, mandates that CIL will have to pay penalties if it fails to supply 80% of its commitment. But it also gives breathing space to the PSU by leaving it to the board of directors to decide what the penalty will be. “This is best possible we could do to break the stalemate. We have to think about Coal India’s investors and the company as well. CIL will adhere to the PMO’s order,” a coal ministry official said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/govt-issues-presidential-decree-to-force-coal-india-for-long-term-fuel-supply-to-private-power-firms/articleshow/12524442.cms)
EMERGING MARKETS TO SPEND $1.22 TRILLION ON IT IN 2012: GARTNER
NEW DELHI: Emerging markets, led by Brazil, Russia, India, Mexicoand China, will spend $ 1.22 trillion on information technology in 2012 which accounts for more than 31 per cent of the global spending, research firm Gartner said today. “Emerging markets will generate $ 1.22 trillion in IT spending in 2012, representing more than 31 per cent of the worldwide total, according to Gartner, Inc. “While professional and consumer market opportunities can be found in many emerging markets, Brazil, Russia, India, Mexico and China (BRIMC) continue to perform…strongly, and this is where over half of emerging markets’ IT spending will be concentrated in 2012,” Gartner Research Vice-President and Head of Emerging Markets Research Luis Anavitarte said. BRIMC will contribute 17 per cent of the global IT spending at nearly $ 658 billion in 2012, he added. (For details log on to : http://economictimes.indiatimes.com/news/international-business/emerging-markets-to-spend-1-22-trillion-on-it-in-2012-gartner/articleshow/12520982.cms)
BHEL OPEN TO COLLABORATIONS WITH CHINESE COMPANIES
NEW DELHI: Bharat Heavy Electricals, which is facing stiff competition from Chinese equipment makers, today said it is open for collaboration with companies from the neighbouring country. In response to a query on whether the company would be open for collaboration with Chinese entities, BHEL Chairman and Managing Director B Prasada Rao said, “If it adds value to us, we are open to that”. Import of cheaper Chinese power equipment are impacting state-run BHEL which today posted a net profit of Rs 6,868 crore for the year ended March, 2012. The government is looking at higher import duty on Chinese power gear to provide a level playing field for domestic manufacturers such as BHEL. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-open-to-collaborations-with-chinese-companies/articleshow/12521297.cms)
SAIL PAYS GOVERNMENT RS 425.36 CRORE INTERIM DIVIDEND
NEW DELHI: State-owned Steel Authority of India Ltd (SAIL) on Tuesday paid Rs.425.36 crore as interim dividend to the government for its 85.82 percent holding in the firm. Steel Minister Beni Prasad Verma presented the interim dividend cheque to Prime Minister Manmohan Singh. SAIL chairman C.S. Verma was also present on the occasion. “In addition to interim dividend, the board of directors of the company would also recommend final dividend for the year, while approving the financial results for the year 2011-12,” SAIL said in a statement. “It is pertinent to note that since its inception, SAIL has made total dividend pay-outs of Rs.9,392 crore equivalent to 228 percent of its paid up capital. Out of this, payment to government of Indiais Rs.8,092 crore, besides dividend tax of Rs.1,342 crore,” it added. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/sail-pays-government-rs-425-36-crore-interim-dividend/articleshow/12522655.cms)
BRAZIL, INDIA TOP BUSINESS CONFIDENCE INDEX: REPORT
Amid Eurozone crisis and uncertain economic climate, emerging economies of Braziland Indiahave topped the business confidence index, confirming their role as key drivers of the global economy, says a Regus report. The global Business Confidence Index is based on a survey of views on revenue, profit trends and expected growth. According to the latest bi-annual Regus Business Confidence Index (BCI) report which tracks the opinions of over 16,000 business managers and owners from 86 countries, business confidence in Brazil has reached 148 points in March followed by India 143 points. The benchmark average is set at 100 to indicate a neutral outlook. However, businesses confidence in Indiahas dipped by 2 index points from September 2011 to 143 in March this year, while during the same period Brazilwitnessed a rise of 2 points to 148. (For details log on to : http://economictimes.indiatimes.com/news/economy/indicators/brazil-india-top-business-confidence-index-report/articleshow/12519087.cms)
RIL TO GIVE FRESH KG-D6 PLAN BY OCTOBER
MUMBAI: Three weeks after anticipating a drop in Reliance Industries’ Krishna Godavari (KG)-D6 block, Niko Resources, its 10 per cent partner in the block, said an integrated development plan for commercialisation of approximately three trillion cubic feet of additional discovered gas would be submitted to the Indian government by October. This, the Canadian company said on its website, would “add approximately one billion cubic feet/day of additional new production”. RIL had said in January it would begin work on the development of four satellite fields — D-2, D-6, D-19 and D-22 — in India’s largest gas field, KG-D6. It had said it would start engineering surveys soon. The approved capital expenditure of $1.529 billion (Rs 7,700 crore) could be revised upwards or downwards by 10 per cent, depending on actual costs. It is estimated the four fields would be able to produce 10 million cubic metres of gas a day by 2016. (For details log on to : http://www.business-standard.com/india/news/ril-to-give-fresh-kg-d6-plan-by-oct/470046/)
COMMERCE MINISTRY SEEKS TO FREE IMPORT OF IMPURE GOLD
NEW DELHI: The commerce ministry wants to allow refiners to directly import of gold doré, an impure form of the metal which is currently imported only through state-run trading companies like MMTC and STC and a clutch of designated banks. The ministry has taken up the matter with the Reserve Bank of India. The ministry reckons that since imported gold dore goes for domestic value addition and these imports are not for pure investment purpose, it doesn’t make sense to put refiners under cumbersome trade restrictions. The finance ministry and RBI have recently taken measures to curb gold imports in the wake of the widening current account deficit and in line with the policy imperative that encouraging gold as an investment option might not help enhance the productive capacity of the economy. (For details log on to : http://www.financialexpress.com/news/ministry-seeks-to-free-import-of-impure-gold/932405/)
DOT WANTS EGOM FOR 2G AUCTION
NEW DELHI: Taking a leaf out of the 3G spectrum auctions, the department of telecommunications (DoT) is considering setting up an empowered group of ministers (EGoM), which would decide on the critical issues related to the auction of 2G spectrum. The department could soon be sending a letter in this regard to cabinet secretary Ajit Kumar Seth and principal secretary to the PM, Pulok Chatterji. In the letter, DoT would also be seeking a fix on the amount of spectrum which will be auctioned, number of slots and also the reserve price for each of the circles. In the 3G spectrum auctions, the range of the reserve price varied across category A, B and C circles, in all totaling R3,500 crore for a pan-India slot. (For details log on to : http://www.financialexpress.com/news/dot-wants-egom-for-2g-auction/932396/)
SALARIES SURGE 7%-20% IN NON-IIM BUSINESS SCHOOLS
NEW DELHI: Salaries at premium non-IIM management schools in the country, like Faculty of Management Studies (FMS), Management Development Institute (MDI) and XLRI, Jamshedpur, have surged 7-20% this year compared to the previous year. These schools are also getting a greater number of offers from recruiters. For instance, the highest international salary offered at MDI Gurgaon was R43 lakh per annum and the highest domestic salary was R20.80 lakh. The average annual MDI salary has risen by over 14% since last year to R14.28 lakh. XLRI Jamshedpur saw an unprecedented 284 offers made to a batch of 235 students with the average domestic salary at R16.48 lakh a year and the median domestic salary at R15.5 lakh. Moreover, in line with previous years, global pharmaceuticals major Novartis AG made the highest international offer of $150,000. (For details log on to : http://www.financialexpress.com/news/salaries-surge-720-in-noniim-business-schools/932392/)
IPOs, AUCTIONS SET TO DRIVE DISINVESTMENT IN 2012-13
NEW DELHI: Considering the disinvestment mop-up target of Rs 30,000 crore for financial year 2012-13, the government is thinking of optimising the collection from stake sales in central public sector enterprises (CPSEs). The strategy includes focusing on initial public offerings (IPOs), rather than follow-on public offerings (FPOs), in the coming months, if the market situation doesn’t improve. It also plans to auction shares of companies whose stocks were trading at traditional levels despite the sluggish market situation, providing the possibility of maximising revenue collection. An official of the department of disinvestment told Business Standard the buyback of shares by CPSEs and allowing cash-rich companies to buy equities of other public sector companies were the other options, as and when companies brought their plans to the department. (For details log on to : http://www.business-standard.com/india/news/ipos-auctions-set-to-drive-disinvestment-in-2012-13/470053/)
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