NEW DELHI: A Bharti Group joint venture company, set up last year to invest in social media and gaming and partly managed by promoter Sunil Mittal’s son Kavin, has made its first acquisition in the e-commerce space.
Bharti SoftBank Holdings (BSB), the JV between the Indian mobile phone firm and Japanese communications major SoftBank Corp, is picking up a 49% stake in Gurgaon-based value-added services startup Y2CF, two executives linked to the development said. BSB has the option to acquire the remaining stake at a future date, these executives added.
Kavin Mittal, who heads strategy and new product development for the JV, will execute the deal and oversee the integration. Industry executives pegged the deal size at about 40 crore, but ET could not independently confirm this.
Y2CF was founded by Bharti Airtel’s former value-added services head Mohammad Imthiaz in 2010, and had been in the news recently for developing a location-based platform called ‘Hoppr’ that has been simultaneously launched by six mobile operators – Airtel, Aircel, Idea, Reliance, Tata Docomo and Vodafone.
Y2CF had also promoted Hoppr as being the only mobile device-agnostic location based service in the country while also adding that the application would
enable customers to ‘explore rewards and offers available with brands and merchants in their vicinity’.
The
Gurgaon-based company has tied up with brands such as Cafe Coffee Day, Barista, DT Cinemas, Baskin-Robbins, Lakme and Ferns ‘n’ Petals for this service, which will initially aim to cover 3,000 retail outlets across four cities – Delhi, Mumbai, Kolkata and Bangalore. Y2CF had also hired a bunch of top executives from competitors recently, including Gaurav Sharma from analytics major Mu Sigma to be its head for Analytics & Operational Excellence, Rohit Awasti from Sanpdeal to oversee its Online and Communities vertical and Sanat Thite to head its web strategy.
The location-based service (“LBS”) industry in the country is expected to reach 2,400 crore by 2014, the Internet and Mobile Association of India said. BSB declined to comment and Kavin Mittal could not be reached as he is currently travelling abroad. But in a May 28 posting on his blog, Kavin wrote that BSB was an incubator that ‘build teams from the ground up and also carefully invests in small fledgling teams that (it saw) great potential in and that shared its vision’.
“At its core, BSB is an agile and fast moving startup. We build, we launch, we fail, we iterate and we keep going until we succeed. We’ve spotted countless opportunities in the Indian market but we believe that focus is the key in building something that has an impact and focus means saying no to many good ideas to focus on the great ones. We love building things for the consumer space and thus we chose Social, Gaming, Commerce & Media as the four verticals to focus on,” the blog posting had added.
DUBAI COMPANY SET TO BUY BCCL’S TIMESOFMONEY
MUMBAI: Bennett, Coleman and Co Ltd (BCCL), India’s largest media house and popularly known as the Times group, is again divesting its non-core businesses. Dubai based Network International LCC, one of the largest of payment solutions providers, was set to buy TimesofMoney, the digital payment services provider and remittance company of BCCL, said two people aware of the development. According to them, this was part of a larger group restructuring, ahead of its proposed Initial Public Offer. BCCL had got investment bank UBS to advise it on finding a strategic buyer for the business. The talks have been on for a while and the formal announcement is due within the next fortnight. The sources added the business was currently valued at around Rs 700 crore and BCCL was exiting at a premium of close to Rs 800-1,000 crore. When asked, Ravi Dhariwal, CEO of BCCL, told Business Standard, “I have no comments to offer on this market speculation.” Despite several mails and phone calls, Ram Chari, CEO, Network International, did not respond to Business Standard’s queries. (For details log on to : http://www.business-standard.com/india/news/dubai-company-set-to-buy-bccls-timesofmoney/475861/)
NATIONAL POWER BOURSE GETS MERGER OFFERS FROM 2 OTHERS
MUMBAI: The National Power Exchange (NPEX), the country’s third power exchange which is yet to launch its operations, has received separate merger proposals from the other two power exchanges, Indian Energy Exchange (IEX) and Power Exchange India (PXI). M G Raoot, managing director (MD) and chief executive officer (CEO) of NPEX, said it had informally discussed the merger issue with IEX and PXI, but was yet to take a decision on the issue. “NPEX is poised to hit the market at an opportune time. The Central Electricity Regulatory Commission (CERC) has recently given its approval for our business rules and by-laws. We are going ahead with our business plan. It’s true that both IEX and PXI have informally discussed with us a proposal for merger. We have not taken any formal view in this regard,” Raoot told Business Standard. (For details log on to: http://www.business-standard.com/india/news/national-power-bourse-gets-merger-offers2-others/475838/)
PHOTON KATHAAS, MAHESH BHUPATHI’S GLOBOSPORT TIE-UP FOR REALITY TV CONTENT
CHENNAI: Photon Kathaas Productions, a movie production company in which Oscar winner AR Rahman and film director Gautham Menon are advisors, is foraying into TV content and has tied up with tennis player Mahesh Bhupathi’s GloboSport for the same. The two will produce ‘Sitaara,’ a reality TV search for South India’s next top actress. The show will be produced in all four South Indian languages (Tamil, Telugu, Kannada and Malayalam). This was stated in a Photon Kathaas statement released on LSE’s AIM exchange, where it is listed. The statement quoted the company’s CEO Venkat Somasundaram as saying, “It is a clear example of our stated objective of producing and exploiting a diverse portfolio of South Indian content across multiple formats and languages.”” (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/media/entertainment/entertainment/photon-kathaas-mahesh-bhupathis-globosport-tie-up-for-reality-tv-content/articleshow/13668500.cms)
ONGC TO FOCUS ON DEEPWATER, SHALE STRATEGY TO DOUBLE PRODUCTION, TRIPLE PROFIT BY 2030
NEW DELHI: Oil & Natural Gas Corp, India’s biggest energy explorer, plans to focus on shale and deepwater areas to double production and triple profit by 2030 as it competes with Chinato acquire assets globally. “We have to form alliances, we have to go into frontier areas like shale and deepwater around the world,” Chairman Sudhir Vasudeva told reporters in New Delhion Tuesday after the company said fiscal fourth-quarter profit doubled. “Our aim is to increase domestic production twofold, revenue and earnings before interest, tax, depreciation and amortisation threefold and international production sixfold.” The state-owned explorer plans to spend Rs 1.25 lakh crore ($22.4 billion) to increase output in the next five years and an additional $1 billion to acquire shale assets in the USto meet demand in India. ONGC has been beaten by Chinese rivals in the quest for assets from Latin America to Africaas the world’s most populous nations seek to secure energy supplies. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/ongc-to-focus-on-deepwater-shale-strategy-to-double-production-triple-profit-by-2030/articleshow/13679417.cms)
PRIMARY HEALTHCARE RETAIL CHAIN PLANS RAPID EXPANSION
CHENNAI/BANGALORE: Modern Family Doctor Limited (MFD), focussing on primary healthcare and attempting to revive the concept of the family doctor, had secured an investment of Rs 10 crore (about $2 million at the then exchange rate) from the venture capital arm of the US-based investment bank Silicon Valley Bank (SVB) in July 2011. SVB is the California-based subsidiary and the commercial banking operation of SVB Financial Group. Silicon Valley Bank’s holding company, SVB Financial Group, comprises additional businesses that are dedicated to improving clients’ opportunities and offering access to the right intelligence and connections in the innovation sector: The SVB Group is said to have $20 billion in assets and over 1,500 employees globally. Naresh Malhotra, Director of Modern Family Doctor, said, “Modern Family Doctor already has 11 operational clinics across Bangalore. Each clinic serves as a primary healthcare centre that includes consulting, diagnostics, treatment and medication services under one roof. It is an established fact that more than 70 per cent of all medical cases can be initially addressed by a primary care physician. Only a certain percentage of these require referral to specialty care facilities.” The Modern Family Doctor plans to grow to over 300 outlets pan Indiaover a three year time frame. It takes a capex of Rs 25-30 lakh for MFD to open a clinic. (For details log on to : http://www.business-standard.com/india/news/primary-healthcare-retail-chain-plans-rapid-expansion/475820/)
SEL TO FORAY INTO HOME FURNISHING, INVEST OVER RS 1,500 CRORE
CHANDIGARH: Textile major SEL Manufacturing today said it plans to foray into home furnishing segment by setting up a new facility in Punjabwhich would entail investments of more than Rs 1,500 crore. The company has forwarded a proposal to Punjab government seeking 500 acres of land for the setting up of greenfieldmega project. “We have plans to foray into home furnishing segment and for this we have sought 500 acres of land for setting up a new facility for this purpose from Punjab government,” the company’s director, Neeraj Saluja told PTI. He said the total investment in this project may exceed a sum of Rs 1,500 crore. “The home furnishing facility will be a completely 100 per cent export-oriented unit and we will be catering to big overseas retailers,” he said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/garments-/-textiles/sel-to-foray-into-home-furnishing-invest-over-rs-1500-crore/articleshow/13674431.cms)
VIOLATION OF REALTY FDI LOCK-IN NORMS UNDER ED SCANNER
NEW DELHI: Last one year’s real estate deals involving foreign investments have come under the scanner of the enforcement directorate (ED). The government and the investigators suspect that founder or primary companies based in the United States, EU and other countries sometimes exit investments in Indian real estate projects through the sale of Mauritius-based subsidiaries without any intimation to the Indian government. This amounts to a violation of the FDI policy where it is stipulated that foreign investors in Indian realty projects have to be locked in for a period of three years. A case that has come to the notice of policymakers is that of Bahrain’s Taib Bank’s investment in a project owned by Delhi-based real estate firm Anant Raj Industries. Taib Bank picked up the stake through entities based in Cyprusand Mauritius, and then sold these arms before the lock-in period of three years was over. Acacia Real Estate, the Mauritius-based arm of Taib Bank, invested R225 crore in 2008 to pick up a 26% stake in a mall developed by Anant Raj Industries in Delhi. Taib Bank is the principal founding shareholder in Acacia. (For details log on to : http://www.financialexpress.com/news/violation-of-realty-fdi-lockin-norms-under-ed-scanner/955884/)
GOVT SWITCHES ON, LIFTS COAL MINING HURDLES
NEW DELHI: The government has removed roadblocks to coal mining by leading business houses and taken the first step to relax scrutiny of corporate expenditure on oil and gas fields, in a burst of action that has cheered investors and industrialists in the languishing energy sector. A group of ministers recommended to the cabinet on Wednesday that Reliance Power’s Chhatrasal block, which is attached to the 4,000 mw Sasan Ultra Mega Power Project, and Mahan block for captive use by Hindalco and Essar should be given forest clearance, subject to some conditions. The projects have been mired in controversy after the Comptroller and Auditor General of Indiasaid in a leaked draft report that the government had given undue benefits to private companies by handing out coal blocks, a charge vehemently denied by the coal ministry and Prime Minister Manmohan Singh. Separately, the oil ministry announced it had set up a panel under C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, to review the production sharing contracts (PSC) with oil companies and suggest ways to minimise the government’s monitoring of expenditure by oil companies. ET first reported this on Monday. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/gom-gives-green-signal-to-chhatrasal-mahan-coal-blocks/articleshow/13679115.cms)
INCUMBENTS MAY PAY MARKET RATE FOR 2G WAVES
NEW DELHI: The government plans to ask all mobile phone companies to pay auction-discovered price for the 2G spectrum they hold for the remaining period of their licences, as it seeks to create a level playing field, said a top telecom ministry official. The move will send shockwaves among existing operators as back-of-the-envelope calculations suggest these companies will have to shell out several thousands of crores if the Cabinet approves the policy change proposed by the communications ministry. The DoT will present a note to the Cabinet on this issue next week, said the official. “Telecom companies that lost permits following the Supreme Court order must pay a minimum of Rs 3,622 crore for every unit of 2G airwaves in the upcoming auctions if the telecom regulator’s pricing is accepted by the Empowered Group of Ministers. But the operators whose permits were not quashed have not been subject to any market-determined fee for the airwaves they currently hold. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/telecom/government-plans-to-ask-mobile-phone-companies-to-pay-market-rate-for-2g-waves/articleshow/13679293.cms)
INDIA INC’S SALES GROWTH RATE AT 10-QUARTER LOW
MUMBAI: The fourth-quarter sales growth at 10.3 per cent for manufacturing and software services companies (excluding oil marketing companies, refineries and banks) confirm a demand slowdown for India Inc. The sales growth rate has been a 10-quarter low, dragged by slowdown in the key sectors — capital goods, construction, infrastructure, non ferrous metals, steel and telecom — that had contributed to India Inc’s growth story in the past. Automobiles, banks, fast moving consumer goods, oil marketing companies, pharmaceuticals and software companies were growth drivers in the fourth-quarter net profit, up 16.6 per cent over the level of a year before. Globally, exposed sectors like metals (both ferrous and non ferrous), telecom, speciality chemicals, petrochemicals and textiles reported one of the worst performances in the recent past. On the domestic front, the slowdown was seen in capital goods, construction, and power sectors, as capital expenditure plans were put on hold due to rise in the cost of borrowing. (For details log on to : http://www.business-standard.com/india/news/india-incs-sales-growth-rate-at-10-qtr-low/475872/)
POWER DEMAND CROSSES 5000 MW ON WEDNESDAY
NEW DELHI: Power consumption in the city touched an all-time high of 5,155 MW at 3.23pm on Wednesday afternoon. The previous record was recorded less than a week ago on Friday. Power sector experts attributed the growing demand for electricity to the rising mercury and noted a trend in consumption pattern which showed a widening gap between minimum and maximum power demand. Discoms said that Wednesday’s peak demand was successfully met without any load-shedding. The electricity demand in the city is growing by an average 20% annually and discoms are gearing up to meet a load requirement of up to 5,500 MW this summer. However, power sector experts say that demand crossing 5,000 MW in May is worrying as usually June-July record the season peak. (For details log on to : http://timesofindia.indiatimes.com/city/delhi/Power-demand-crosses-5000-MW-on-Wednesday/articleshow/13678310.cms)
MINISTERIAL PANEL OKAYS MINING OF CHHATRASAL, MAHAN BLOCKS, REFERS TO CABINET WITH RIDERS
NEW DELHI: Giving a shot in the arm to Essar Power, Hindalco and Reliance Power, a ministerial panel on mining in densely forested areas on Wednesday okayed the exploration of Mahan and Chhatrasal coal blocks by these entities and referred the matter to the Cabinet for final clearance, though with certain riders. If the Cabinet clears the panel’s proposal, then the entities would be able to mine the blocks for their respective power projects. The Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee, which deliberated on the matter for almost two hours, decided to allow Essar Power and Hindalco Industries to mine the Mahan block, and simultaneously okayed the mining of Chhatrasal coal block by Reliance Power. Sources close to the development said that the panel decided to refer both the blocks to the Cabinet for final approval, however it has added certain riders like the entities would have to modify their mining plan by excluding around 100 hectares of good quality forest area from the mining lease. (For details log on to: http://dailypioneer.com/business/69397-ministerial-panel-okays-mining-of-chhatrasal-mahan-blocks-refers-to-cabinet-with-riders.html)
NUCLEAR POWER CORPORATION NOT AFFECTED BY RUPEE DEPRECIATION: OFFICIAL
CHENNAI: The rupee depreciation will not impact the Nuclear Power Corporation of India Ltd (NPCIL) as it has already imported the required quantities of uranium, said a top company official. “We do not import on monthly basis. We have already imported the required quantities of uranium and the rupee depreciation will not impact us,” S.K. Jain, NPCIL chairman and managing director (CMD) told IANS, ahead of laying down office Thursday. According to Jain, tariffs are not affected due to rise in fuel costs or rupee depreciation. The fuel cost in a nuclear power project constitutes just a fifth of generation cost. “We have 10 years’ fuel for the Kudankulam reactors and it is stored in just one room,” Jain said. The first unit of two 1,000 MW atomic power reactor at Kudankulam Nuclear Power Project (KNPP) is expected to start power generation some time next month, while the commercial production is expected to happen this August, said Jain. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/nuclear-power-corporation-not-affected-by-rupee-depreciation-official/articleshow/13668924.cms)
COAL MINISTRY EXAMINING CRISIL BID FOR CONSULTANCY CONTRACT
NEW DELHI: The Coal Ministry is examining the bid placed by Crisil for contract to prepare a framework for auctioning of coal blocks. “We are examining the bid and would award the contract at the earliest,” said a Coal Ministry official. Central Mine Planning & Design Institute (CMPDI), a subsidiary of Coal India Ltd, had sought the expression of interest (EoIs). Three bidders, SBI Caps, PwC and Crisil, were shortlisted to submit financial bids. Crisil has emerged as the lowest bidder for the job. The Coal Ministry is in the process of finalising auction norms for the latest round of mine exploration. The winner of this contract would suggest mechanisms for finalising bid documents, deriving a formula to determine reserve price, and the agreement to be signed between the contractor and the Government. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3474417.ece)
INDIA INC’S BIZ SENTIMENT IMPROVED IN Q4: SURVEY
NEW DELHI: Corporate India’s confidence level has shown signs of improvement in the March quarter even as the domestic economy is witnessing high inflation and a likely slump in growth rate, says a survey. According to the NCAER MasterCard Worldwide Index of Business Confidence, the confidence of India Inc increased by 7.7% over the previous quarter to 134.9 points in the March quarter from 125.2 points in January 2012. Confidence level in doing business rose for the first time since January 2011, irrespective of the fact that there is a global slump and high inflation rates. The change in business sentiments comes on the back of a number of developments that have taken place on both domestic and global front in the last quarter of FY12, the survey said. While moderation in economic growth rates persisted, inflation also moderated and foodgrain harvest in 2011-12 has been at a record level, the study said. (For details log on to : http://www.financialexpress.com/news/india-incs-biz-sentiment-improved-in-q4-survey/955989/)
FUEL SUBSIDY PULLS GAIL NET DOWN 38% TO R483 CRORE
NEW DELHI: Government-owned gas utility GAIL India on Wednesday reported a 38% fall in net profit for the fourth quarter to R483 crore against R783 crore in the same period a year ago as fuel subsidy to retailers IOC, HPCL and BPCL went up by a half. Turnover for the quarter jumped 18% to R10,454 crore. Net profit for the 2011-12 fiscal inched up by a marginal 3% to R3,654 crore from the previous fiscal despite a spectacular 24% jump in annual turnover to R40,281 crore. “Due to a heavy growth in subsidy, a 17% growth in profit after tax for the whole fiscal has diminished to 3%,” GAIL India CMD BC Tripathi said. Tripathi said that for the full-fiscal, GAIL’s subsidy liability jumped 51% to R3,183 crore. Piped gas tariff revision by the regulator Petroleum and Natural Gas Regulatory Board (PNGRB) affected the company to the extent of R283 crore. (For details log on to : http://www.financialexpress.com/news/fuel-subsidy-pulls-gail-net-down-38-to-r483-crore/955888/)
TUFS TO BE APPLICABLE IN FY13 TOO
NEW DELHI: The government will extend the provisions of the technology upgradation fund scheme (TUFS), applicable for the 2011-12 fiscal, to this fiscal as well. This would mean that TUFS will be granted funds as per the 2012-13 Budget allocation, but the sectoral cap will be maintained in sync with last fiscal’s provisions. “The provisions of TUFS meant for 2011-12 fiscal will be extended to 2012-13 as well until the twelfth five year plan proposals are finanlised,” a senior government official said. TUFS was launched on April 1, 1999, for a period of five years, and was subsequently extended up till March 31, 2007. The scheme was later restructured with effect from April 28, 2011, and approved up till March 31, 2012. (For details log on to : http://www.financialexpress.com/news/tufs-to-be-applicable-in-fy13-too/955855/)
CAG BEGINS AUDIT OF RIL, CAIRN & PMT BLOCKS
NEW DELHI: The Comptroller and Auditor-General has begun an “extensive” audit of the four oil and gas blocks being operated by Mukesh Ambani-owned Reliance Industries Limited (RIL), Anil Aggarwal-owned Cairn India Limited and the Panna-Mukta Tapi (PMT) assets, a joint venture of RIL, ONGC and British Gas, following an order issued by the government. The audit will also cover the activities of the Directorate-General of Hydrocarbons and the Petroleum Ministry to verify whether revenue interests of the Government of India were properly protected and system/procedures of the Ministry and the DGH to monitor and ensure compliance with Production Sharing Contracts (PSC) were adequately followed. The government also expressed the desire to extend the audit up to 2011-12. For the PMT fields, the audit would cover the period of 2006-07 to 2008-09 and for KG-DWN-98/3 and RJ-ON-90/ block it would be for 2008-09. The audit comes after the CAG, in its draft report last year, charged the Petroleum and Natural Gas Ministry with granting undue concessions and favour in allowing extensions and area granted to RIL in KG basin, Cairn India Limited’s Rajasthan block and discrepancies in the Panna-Mukta-Tapti JV. (For details log on to : http://www.thehindu.com/news/national/article3474229.ece?homepage=true)