NEW DELHI: US telecom giant Qualcomm Inc will rope in an operator as partner, who would initially pick up the 26 per cent stake held by Tulip Telecom and GTL Group in its India broadband wireless access (BWA) venture. The two hold 13 per cent each in the venture.
Talks with Bharti Airtel as the new partner, in their final stages, are expected to be completed soon as the US company received BWA spectrum in four circles yesterday after more than 18 months of delay and a bitter battle. If everything is on track, sources say Qualcomm Inc expects it would be able to start services within six months.
Qualcomm has also decided it will not invest any more in the venture and is willing to see a slow dilution of its stake in the company in the next phase. Qualcomm has already forked out Rs 4,912 crore to win BWA spectrum in the circles of Delhi, Mumbai, Kerala and Haryana. It has also paid an additional Rs 410 crore to the Department of Telecommunications (DoT) as ordered by the TDSAT. The amount was the disputed dues its partners owed to the government.
However, with the DoT reducing the validity of its spectrum usage from 20 to 18.5 years, the valuation would come down proportionately for the company.
A Qualcomm spokesperson did not respond to an email query. A Bharti Airtel spokesperson said the company did not comment on market speculation. A GTL spokesperson declined to comment.
Top sources say Qualcomm was clear from the beginning it did not want to operate services but to assist operators to launch LTE 4G services, a technology it has backed against Wimax. The US company would make money from selling chipsets for devices, its core business.
The Qualcomm move is expected to speed up action in the BWA space, with Bharti Airtel taking the first strides. It has launched services in Kolkata and Bangalore already. A stake in Qualcomm would help Bharti Airtel spread its presence in the BWA space to eight circles, including the key cities of Delhi and Mumbai.
SANOFI UNIT TO BUY MORE STAKE IN SHANTHA BIOTECHNICS
NEW DELHI: One of the world’s leading drug manufacturing company Sanofi Aventis’ vaccine unit Sanofi Pasteur Merieux (SPM) is set to pump in R514 crore in Hyderabad-based Shantha Biotechnics, in which it acquired majority stake in 2009. Sanofi will buy around 1% in the company thereby increasing its stake from 96%. Fresh capital would be pumped in through issue of fresh equity and also rights issue. Sanofi had urged the government for clearing the proposal for capital infusion as it is encountering huge losses since 2009, hence requires an urgent funding. The foreign investment promotion board (FIPB) has cleared the company’s proposal at its last meeting. In 2009, Sanofi Pasteur took control of Indian vaccine maker Shantha Biotechnics via the acquisition of Mérieux Alliance’s subsidiary ShanH, which owned a majority stake in Shantha Biotechnics. This transaction valued Shantha Biotechnics at 550 million euro. (For details log on to : http://www.financialexpress.com/news/sanofi-unit-to-buy-more-stake-in-shantha-biotechnics/947472/)
ADITYA BIRLA GROUP BIDS FOR AUSTRALIA-LISTED NORTHERN IRON
Aditya Birla Group, the cash rich conglomerate headed by Kumar Mangalam Birla, has submitted a non-binding bid for buying Australia-listed iron ore producing firm Northern Iron, two sources with direct knowledge said. Northern Iron is expecting a valuation of close to $500 million, sources said. A source at Aditya Birla Group said, “We are in the process of examining the mines, it looks like an attractive asset.” Aditya Birla Natural Resources is said to be the arm through which the acquisition process has been initiated. Tuhin Mukherjee, managing director of Aditya Birla Natural Resources, said, “In line with our media policy we do not comment on market stories.” Northern Iron’s spokesperson Harald Martinsen said, “The company is currently undertaking a ‘strategic review’ with Goldman Sachs as our financial advisor. We expect the process to be completed by July this year.” (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/aditya-birla-group-bids-for-australia-listed-northern-iron/articleshow/13072049.cms)
FLEXENCLOSURE INKS JV WITH MUMBAI’S ARTHEON GROUP
KOLKATA: Flexenclosure, a global developer of environment-friendly energy solutions for telecom companies, has inked a 51:49 joint venture with Mumbai’s Artheon Group, and has named ex-Nokia Siemens Networks (NSN) business development head Mukesh Singh as CEO of its India arm. It has also roped in ex-Uninor COO Rohit Chandra into the leadership team, said a top company executive. The Swedish firm has entered Indiaat a time when tower companies are going green to cut diesel consumption and carbon emissions. Artheon Group has interests in telecoms, IT and re-newable energy. One of the first tasks of the Swedish company would be to expand its partnership with Bharti Airtel beyond Africa. India’s largest telecom company has deployed Flexenclosure’s green energy solution in Ghanaand Nigeria. “We are in talks with Bharti Airtel to deploy our green energy solution across its South Asian operations. We are also in talks with Airtel tower arm Bharti Infratel, and IndusTowers,” said Flexenclosure global CEO David King. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/flexenclosure-inks-jv-with-mumbais-artheon-group/articleshow/13074605.cms)
PRIVATE EQUITY INVESTORS LINE UP TO CASH IN ON WIND ENERGY SECTOR
BANGALORE: Trishe Energy, the Chennai-based wind power developer is currently in talks with a number of private equity firms to raise about $100 million, which it plans to re-invest in infrastructure, including land development and power allocation. “We are seeing a lot of interest from private equity investors, and the fund raise should be done in three or four phases,” Bikramaditya Raha, president – projects, Trishe India, said without disclosing the names of potential investors. Trishe, a pure-play engineering, procurement, construction (EPC) developer, handles turn-key projects for enterprises looking to set up wind farms. The transaction, which, according to Raha, should close in less than six months, is the latest one in the country’s wind energy sector, which has been seeing a sudden infusion of risk capital, as private equity funds look to increase their exposure to India’s renewable energy sector. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/private-equity-investors-line-up-to-cash-in-on-wind-energy-sector/articleshow/13062814.cms)
SAP VENTURES TO INVEST 15-20 PER CENT OF CORPUS IN INDIAN COMPANIES
BANGALORE: SAP Ventures, an independent venture capital (VC) fund affiliated to global technology firm SAP, is planning to invest 15-20 per cent of its corpus in India. SAP Ventures had formed its first fund with a corpus of $353 million to fund technology companies in 2011. The German software firm formed its venture arm in 1996, and used to fund technology companies from its balance sheet till 2011. “The fund is in the deployment stage and we intend to deploy 15-20 per cent of the capital in India. Our goal is to generate superior financial returns, and our corporate partners also benefit from the exposure to innovative and disruptive companies and trends,” Jai Das, managing director of SAP Ventures, told Business Standard. SAP Ventures has invested in four companies in India— iYogi; One 97Communication; Just Dial and NewGen. The company’s investment in Indiaaccounts for 15 per cent of the total deployed capital of the core fund, which it started deploying last year. (For details log on to : http://www.business-standard.com/india/news/sap-ventures-to-invest-15-20corpus-in-indian-companies/473916/)
ONGC TO FORAY INTO CITY GAS, PLANS TO SET UP ONGC GAS
NEW DELHI: In an attempt to de-risk its exploration business, state-owned Oil and Natural Gas Corp (ONGC) plans to foray into gas retailing business through a new subsidiary—ONGC Gas Ltd. ONGC would use the new subsidiary for its foray into city gas distribution business and sale of imported liquefied natural gas (LNG), company officials said here. The new unit may be aimed at making amends to the company letting go lucrative opportunities to enter gas business. Though being the country’s largest natural gas producer at around 55 million cubic meters per day, ONGC has virtually no presence in marketing of the environment friendly fuel. All of its gas is marketed by state-owned GAIL India Ltd. It had let go marketing rights on gas from even newer fields as also of LNG imported by Petronet LNG Ltd. (For details log on to : http://www.financialexpress.com/news/ongc-to-foray-into-city-gas-plans-to-set-up-ongc-gas/947405/)
SHAPOOR MISTRY BRINGS IN TALENT, EXPANDS ROLE OF OLD HANDS
BANGALORE | MUMBAI: Shapoor Mistry of the Pallonji Mistry group is bringing in talent, expanding the role of the old guard and identifying new business ventures at the $2-billion group. The initiative is aimed at transforming the way the construction-to-home appliances conglomerate functions. The reclusive Irish-Parsi business tycoon, Pallonji Mistry, passed the baton of his 147-year-old business conglomerate on to elder son Shapoor Mistry in January this year after younger son Cyrus Mistry was chosen as the successor to Tata Group chairman Ratan Tata. Mistry’s father first bought shares in the Tata Sons in the 1930s, a stake that currently stands at 18.4%. The 47-year-old managing director of the SP Group has brought in former PwC director Jai Mavani as executive director in charge of M&A and family practice, signalling the group’s appetite for inorganic growth. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/shapoor-mistry-brings-in-talent-expands-role-of-old-hands/articleshow/13074287.cms)
APOTEX’S R500-CR INVESTMENT CAUGHT IN GREENFIELD DILEMMA
NEW DELHI: Apotex Pharma Holdings, one of the largest generic drug firms of Canada, is planning to invest Rs 500 crore in its wholly-owned Indian subsidiary, Apotex Research, to set up a solid dose formulation facility. The Canadian firm, which also figures among the top 10 generic firms in the US, the largest drug market globally, has sought the government’s approval for the capital infusion. However, this request has raised the government’s eyebrows on whether such funding of existing subsidiaries by foreign multinationals can qualify as greenfieldinvestments. Interestingly, Apotex dubs it as an infusion in a strictly “greenfieldproject” and promises that the proceeds would not be used directly or indirectly to acquire or merge any existing company in the country. For investments in a greenfieldproject in the pharmaceutical sector, 100% foreign direct investment (FDI) is allowed under the automatic route. But the government has chosen to view Apotex’s investment plans through a different lens. The Foreign Investment Promotion Board (FIPB) has said as Apotex Research is an existing company, and therefore 100% FDI will only be allowed only through the FIPB route. (For details log on to: http://www.financialexpress.com/news/apotexs-r500cr-investment-caught-in-greenfield-dilemma/947467/)
SHINDE SEEKS PMO HELP IN FORCING CIL TO ENFORCE OLD FSA
NEW DELHI/KOLKATA: Power Minister Sushilkumar Shinde may seek the PMO’s intervention in forcing Coal Indiato quash the new fuel supply pacts, which relieve the state-run miner of most of its supply obligations. A senior government official said that Shinde is likely to write to the prime minister’s principal secretary, Pulok Chatterjee, seeking directions to state-run Coal Indiato sign the old fuel supply agreements (FSAs) with a commitment to supply 80% of agreed quantity. In February, the Prime Minister’s Office (PMO) had asked Coal Indiato sign 20-year FSAs with power plants that have inked long-term power purchase pacts with distribution companies and are ready to generate electricity by end-March. When Coal Indiafailed to do so, the order was enforced through a Presidential decree. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/shinde-seeks-pmo-help-in-forcing-cil-to-enforce-old-fsa/articleshow/13074270.cms)
FERTILISER FIRMS TO BENEFIT FROM UREA POLICY CHANGE
NEW DELHI: After potash and phosphatic fertilisers, whose prices were partially decontrolled in 2010, the government will now go for a series of policy changes in pricing urea, the most commonly used fertiliser. These policy revisions will benefit the industry with the government approval for a hike in their urea production costs. The government will foot the bill for the extra subsidy arising from the higher cost. The cabinet committee on economic affairs (CCEA) is likely to consider these changes in a couple of weeks. Subsequently, however, the retail prices of urea could be hiked by 10% in a separate move. Modifications to the pricing system to recognise higher fixed costs would provide relief to the 29 producers in the country by roughly R350 a tonne. (For details log on to : http://www.financialexpress.com/news/fertiliser-firms-to-benefit-from-urea-policy-change/947556/)
POWER SECRETARY TO DISCUSS DEVELOPERS’ CONCERNS OVER FSA WITH COAL MINISTRY
NEW DELHI: The power ministry plans to take up project developers’ concerns about the draft fuel supply agreement (FSA) with the coal ministry soon, a top government official said. The move is aimed at breaking the prevailing logjam over the signing of the FSAs between power companies and public sector coal companies. Sources said power companies have told the ministry that the draft FSA was not acceptable to them in its present form. The message was communicated to the ministry through the Central Electricity Authority (CEA), which held a meeting with power companies on Wednesday. “I’ll take up the matter with the coal secretary as early as possible,” power secretary P Uma Shankar told FE. Wednesday’s meeting was called by the CEA after major power producers like NTPC raised serious objections over recent dilution of the key clauses of the draft FSA, such as those relating to penalty and force majeure conditions. Power companies also made it clear that they would not sign FSAs with CIL unless original provisions are restored. (For details log on to : http://www.financialexpress.com/news/power-secy-to-discuss-developers-concerns-over-fsa-with-coal-min/947389/)
PANEL: COAL MINISTRY INTIMIDATING POWER FIRMS
NEW DELHI: A parliamentary panel has pulled up the coal ministry for cancelling allocations to power companies without trying to address the issues that led to delays in developing coal blocks. The ministry had been acting like a big brother, trying to intimidate power companies for reasons beyond their control, the panel noted. “Mere de-allocation of a block is not a solution, owing to the possibility of new allottees finding it difficult to develop these,” the parliamentary Standing Committee on Energy, headed by Samajwadi Party chief Mulayam Singh Yadav, said in its report on the availability of coal and gas for the power sector. The government has allocated 206 captive coal blocks, with combined reserves of about 40 billion tonnes to about 100 public and private sector companies since 1991. However, only 26 of these have commenced production, owing to delayed environmental clearances, land acquisition delays and law and order issues. (For details log on to : http://www.business-standard.com/india/news/panel-coalmin-intimidating-power-firms/473921/)
NO CHANGES IN FUEL SUPPLY PACT CLAUSES: COAL INDIA
NEW DELHI: Power producers in queue to sign fuel supply agreements with Coal Indiaare in for a setback as the public sector miner is in no mood to tweak any agreement clauses. The Coal India Chairman, Mr S. Narsing Rao, said that his company is not going to review any clauses of the draft FSA (fuel supply agreement) to be signed with the power producers who have commissioned units till December 2011. “This is a generic FSA and approved by the Board. This cannot be changed again and again,” Mr Rao told Business Line. Earlier this week, Coal Indiamanagement held discussions with power producers including NTPC on various issues. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3402014.ece)
STATE ELECTRICITY BOARD RECAST CAN SWITCH ON POWER COMPANIES
NEW DELHI: With power utilities across Indiain financial trouble, the Planning Commission believes a one-shot restructuring can turn the lights back on. But for restructuring to happen, all stakeholders will have to bear some pain, so the commission wants the prime minister’s office to push its agenda. State electricity boards (SEBs) have loans of nearly Rs 80,000 crore. The proposal is to distribute the restructuring burden among state governments, banks that have lent to the state power boards and the Centre. The plan, if implemented, will require the power ministry, the Reserve Bank of India (RBI), the finance ministry, state governments and banks to pull in the same direction. “In isolation, every stakeholder will oppose the plan. That is why we have gone to the prime minister to get everyone to sit together and find a solution,” said a senior Planning Commission official. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/state-electricity-board-recast-can-switch-on-power-companies/articleshow/13072468.cms)
US TO SEND EXPERT TO HELP INDIA CUT IRAN OIL IMPORTS
WASHINGTON: The USwill send its top energy expert to Indianext week to help the country reduce dependence on Iranian oil, secretary of state Hillary Clinton has said as she lauded the steps taken by New Delhion the issue. Carlos Pascual, the state department’s special envoy and coordinator for International Energy Affairs, will be in Indianext week with a team of experts for talks with Indian officials on the Iranian issue. ‘‘We are working with them to help them in any way that we can offer technical assistance, and next week my energy coordinator, Ambassador Carlos Pascual, will be in India with a team of experts,’’ Clinton was quoted as saying by CNN. Clinton’s comments came after her visit to Indiaduring which she asked New Delhito restrict its trade and energy ties with Tehranto meet international demands on its disputed nuclear programme. (For details log on to: http://www.financialexpress.com/news/us-to-send-expert-to-help-india-cut-iran-oil-imports/947404/)
GREENHOUSE GAS EMISSIONS UP 4.2%
NEW DELHI: India’s greenhouse gas (GHG) emissions rose 4.2 % to 1301.21 million tonne in 2000 compared with 1994 levels and the GHG profile for the year 2007 is estimated to be of the order of 1771.66 million tonne carbon dioxide equivalent. These are the findings of the second national communication to the United Nations Framework Convention on Climate Change (UNFCCC) prepared by the ministry of environment and forests, towards fulfillment of the reporting obligation under the convention. The first national communication was submitted to the UNFCCC Secretariat on June 22, 2004. The report includes results of wide ranging national-level studies that provides details of climate change scenarios and its impacts on key sectors, such as water, agriculture, forestry, natural ecosystems, coastal regions, human health, energy, industry and human settlements. The energy sector accounted for 67.4% of total GHG emissions, followed by agriculture at 23.3%, industrial processes at 6% and waste sector 3.4%. (For details log on to : http://www.financialexpress.com/news/greenhouse-gas-emissions-up-4.2/947397/)
MARCH INDUSTRIAL OUTPUT SEEN SLOWING DOWN
BANGALORE: India’s industrial output grew at a sharply slower pace in March thanks to a cooling infrastructure sector, a Reuters poll showed, underscoring the wider economic gloom in the country. A survey of 28 economists showed industrial production (IIP) likely rose around 1.5% year-on-year in March, significantly lower than February’s 4.1%. That would be in line with the findings of a purchasing managers’ survey that showed India’s factory sector expansion slowed for the third consecutive month in March. Infrastructure sector output, a core component of the wider industrial output, grew by a meager 2% in March, much less than the 6.9% in the previous month. The sector accounts for around 38% of overall industrial output and trends in infrastructure data are typically reflected in the headline number. “The core sector data shows that there has been a substantial slowdown in quite a few important segments of industries,” said Madan Sabnavis, chief economist at CARE Ratings, forecasting IIP at 2.7 percent. (For details log on to : http://www.financialexpress.com/news/march-industrial-output-seen-slowing-down/947386/)
FIRMS IN NTPC COAL TENDER PREPARE FOR INDONESIA TAX HIKE
LONDON: Country’s National Thermal Power Corp (NTPC) has pushed back the closing date of its 5 million tonne thermal coal tender until 23 May, traders said. Firms participating in the tender said they were considering various measures to take account of a potential increase in export taxes by Indonesia, which supplies the bulk of India’s imported coal for power generation. India’s biggest trader importers – Adani, Bhatia International, Coal & Oil, Visa and state entity MMTC – are expected to offer into the tender and to supply entirely or mostly Indonesian coal. NTPC has relaxed its terms to promote greater transparency in the tender process and allow more firms to participate but any winning suppliers must still deliver coal to individual power plants and pay a hefty bond, which rules out some of the smaller players. (For details lot on to : http://www.livemint.com/2012/05/09174153/Firms-in-NTPC-coal-tender-prep.html)
SOME OF RELIANCE’S RETAIL FORMATS STILL MAKING LOSSES
MUMBAI: While Mukesh Ambani’s Reliance Retail showed a jump of 25 per cent in consolidated revenue in 2011-12, some of his other major retailing units are still posting losses, according to parent company Reliance Industries Ltd (RIL)’s 2011-2012 annual report. Reliance Retail, set up by RIL six years ago, runs 1,300 stores. It made Rs 7,599 crore in revenue in 2011-12, but didn’t disclose consolidated net profit. Reliance Fresh Ltd posted a loss of Rs 273.8 crore on a revenue of Rs 3,860.4 crore. Reliancedigital Retail posted a loss of Rs 55.1 crore on a revenue of Rs 1,234 crore. Reliance Brands, which has agreements with global brands such as Diesel, posted a loss of Rs 18.7 crore on a turnover of Rs 30.9 crore. Reliance Trends, which runs fashion stores, incurred a loss of Rs 11.35 crore on a turnover of Rs 489 crore. However, some of RIL’s speciality retail units have reached break-even or are nearing the point. (For details log on to : http://www.business-standard.com/india/news/somereliances-retail-formats-still-making-losses/473955/)
NEW NUMBER PLATES MEAN A LUCRATIVE BUSINESS
NEW DELHI: The government, with one stroke, has ended up generating Rs 1,500-crore business for the next two years. By year-end, consumers in every state of the country will buy a new vehicle that will don a specially made high-tech security registration plate. By 2014, it is expected that all vehicles in the country, including old vehicles, will be made to join the bandwagon. The plates will be tamper-proof, secured by a snap lock, virtually impossible to duplicate by roadside vendors, with a unique identity number printed by a laser technique. They promise to provide vehicle-owners with security against theft or misuse by terrorists. All this translates into an attractive business, with competition between half a dozen active players getting fierce. Players such as Rosmerta, Real Mazon, Celex, Schimnit and Promukh Hoffman, run by small businessmen, are gearing up for a kill. (For details log on to : http://www.business-standard.com/india/news/new-number-plates-meanlucrative-business/473958/)
CLARIFICATIONS ON RETROSPECTIVE AMENDMENTS VAGUE ON VODAFONE: EXPERTS
NEW DELHI: The clarifications by Finance Minister Pranab Mukherjee that retrospective amendments to the Income Tax Act may not apply to assessments that have been finalised may be open to interpretation—whether Vodafone would get a reprieve on its tax dispute with authorities—say legal experts. Abhishek Dutta, partner (tax), Hemant Sahai Advocates, asked whether the fact that the Supreme Court had ruled in favour of Vodafone and rejected the finance ministry’s review petition meant the case be dealt as closed? For this, one has to see the fineprint of the clarifications, which may come up after the Finance Bill is passed in the Rajya Sabha. Dutta said he had received queries from various quarters on whether the Vodafone case would be considered closed or not. However, he said the finance minister’s intention of taxing the Vodafone-Hutchison deal was clear. However, one had to go through fineprint to see if a leeway was possible for Vodafone to get rid of the tax demand, he said. (For details log on to : http://www.business-standard.com/india/news/clarificationsretrospective-amendments-vaguevodafone-experts/473924/)
TATA FIRMS TOP ISB’S TRANSNATIONAL INDEX
MUMBAI: Six companies of the $83-billion salt-to-steel conglomerate Tata Group, namely Tata Steel, Tata Global Beverages, Tata Motors, Tata Consultancy Services, Tata Chemicals and Indian Hotels, are among India’s most internationalised firms, according to the Top 15 Indian companies by Transnational Index (TNI), a study released by Hyderabad-based IndianSchoolof Business (ISB). The ISB study, jointly conducted with Brazil’s leading B-school FDC, ranks Indian transnational companies (TNCs) on their degree of globalisation, based on assets, revenues and number of employees. The Tata Group leads the rung of globalised Indian companies with its ‘smart acquisitions’ of British steel maker Corus (now Tata Steel), marque car maker Jaguar Land Rover (now Tata Motors UK) and world’s second largest tea maker Tetley (now Tata Global Beverages), topping the TNI ladder. (For details log on to : http://www.financialexpress.com/news/tata-firms-top-isbs-transnational-index/947398/)
CENTRE TO HOLD TALKS WITH BOARD OF TRADE ON MAY 17
NEW DELHI: Ahead of the foreign trade policy (FTP) review for the fiscal 2012-13, the government will take advice from the Board of Trade (BoT), which includes top corporate leaders like Ratan Tata, Anand Mahindra and Kiran Mazumdar-Shaw on May 17. The idea is to identify steps that should be taken to boost exports, which have been faltering in recent months. The BoT, chaired by commerce and industry minister Anand Sharma, would focus on containing the highest-ever trade deficit of $185 billion, which is adding pressure to the current account deficit. The board includes TVS Motors’ chairman Venu Srinivasan, Ashok Leyland’s MD R Seshasayee, Apollo Tyres’ CMD Onkar S Kanwar and Hero MotoCorp’s MD Pawan Munjal, besides representatives from export promotion councils and top banks , including SBI and ICICI. (For details log on to : http://www.financialexpress.com/news/centre-to-hold-talks-with-board-of-trade-on-may-17/947400/)
GLOBAL MANUFACTURERS GO LOCAL IN COST-WARY INDIA
MUMBAI: At the opening ceremony for Daimler’s $850-million India factory, chairman Dieter Zetsche stepped down from the cab of a gleaming yellow 25-tonne truck with scaled-down horsepower, a stripped-back gearbox and no sign of the iconic Mercedes-Benz three-pointed star on its grille. Daimler has been assembling high-end trucks in India for years, but its recently launched cut-price BharatBenz line has joined a trend by global heavy equipment manufacturers to compete in India’s high-volume, high-growth — but cost-conscious – mass market. The potential is huge. Truck sales alone grew 18% in the year to March 2012 to over 800,000 vehicles, and are expected to double to 1.6 million by 2017. This eclipses the United States, where just over 300,000 commercial trucks were sold in 2011. (For details log on to : http://www.financialexpress.com/news/global-manufacturers-go-local-in-costwary-india/947391/)
CABLE COMPANIES EXPEXT MAJOR HIKE IN SUBSCRIBER REVENUES
NEW DELHI: TRAI’s argument that carriage fees paid by TV channels to cable MSOs are necessary to fund their digitisation appears to be falling apart scarcely a week after it was made. Instead, large cable distributors have themselves said that one factor alone -a huge six-eight times hike in subscription revenues alone as declarations spiral with addressability-would significantly buttress their already profitable balance sheets. With additional revenues from broadband and VAS, industry estimates also say that a bundled digital and broadband + VAS business model will result in the payback period being reduced by a year to 24 months, as opposed to 36 months under a standalone digital cable TV proposition. This comes even as industry reports –including one released five months ago– have been pointing out that all major national MSOs are already adequately funded for Phase I digital deployment (mandatory only in the four metros from July 1, 2012). (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/media/entertainment-/media/cable-companies-expext-major-hike-in-subscriber-revenues/articleshow/13074446.cms)
MULTI-NATIONAL COMPANIES LOOKING TO EXPAND R&D CENTRES IN TIER-2 CITIES: STUDY
BANGALORE: To cut costs and contain attrition, Indian MNCs are moving into tier-2 cities, says a Zinnov study. Consulting firm Zinnov in its study said that while 96 per cent of MNC R&D companies are located in cities like Bangalore, increasingly they are moving to tier-2 cities such as Ahmedabad, Jaipur, Chandigarh, Coimbatore, Vadodara, Nagpur, Pune and Thiruvananthapuram. Further, the study highlighted that the MNC R&D talent pool in Indiafor 2011 was 204,196. This R&D talent pool is growing at the rate of 9 per cent every year and is expected to reach 2.5 lakh by 2015. Mr Chandramouli C.S., Senior Director-Globalization Advisory, Zinnov, said, “MNCs started expanding to tier-2 cities due to advantages like higher catchment area, lower attrition, cost arbitrage, etc.” (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article3402037.ece)
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