Mumbai: DTDC Courier & Cargo, an express courier company where the Anil Ambani-led Reliance Group holds 40% stake, said it has acquired a 52% stake in the UAE-based Eurostar Express. The joint venture in Dubai will be 52% owned by DTDC, 33% by the UAE-based Eurostar Group and 15% by DTDC’s local partner in the UAE.
Started in 1990 and headquartered in Bangalore, DTDC plans to invest R100 crore for expanding its international and e-commerce businesses over the next five years. It is now looking at a joint venture in Australia.
“Acquisition allows DTDC to enter and consolidate its presence all over West Asia including Gulf Cooperation Council (GCC) countries and Middle East and North Africa (MENA) areas,” said Suresh Bansal, the director and head of international business of DTDC.
Eurostar Express is one of the subsidiary companies of the $500-million Eurostar Group. The group has businesses in the domains of trading, services and real estate. It has over 25 retail showrooms in the UAE region and business operations across 50 countries worldwide.
After the joint venture, DTDC’s UAE network has a team of 100-odd professionals and a fleet of about 60 vehicles. The organisation will offer same day delivery, pick-up and return services all over the UAE for vital shipments, delivery of shipments between major cities within the UAE in three hours and ‘Bullet Service’ to all over the UAE within four hours.
GAIL, OIL EYE STAKE IN MUKESH AMBANI’S RGTIL
NEW DELHI: At least 11 companies, including state-owned GAIL (India) and Oil India, have expressed interest to buy stake in billionaire Mukesh Ambani’s privately owned firm Reliance Gas Transportation Infrastructure (RGTIL). “There are five Indian and six foreign companies which have submitted expression of interest (EoI) for buying stake in the gas transportation company (RGTIL),” a source privy to the development said. Gas utility GAIL and oil explorer OIL have submitted separate EoIs for the stake buy, which is being managed by JPMorgan, Citi and SBI Caps. Other firms which have put in EoI may include NYSE-listed energy major Enbridge. The source said the companies putting in EoI would visit dataroom of RGTIL and do a complete due diligence before making any financial bid. (For details log on to : http://www.financialexpress.com/news/gail-oil-eye-stake-in-mukesh-ambanis-rgtil/949246/)
WARBURG PINCUS CLOSE TO BUYING MAJORITY STAKE IN FUTURE CAPITAL
MUMBAI: After selling his apparel business, Pantaloon Retail India, to the Aditya Birla Group, Kishore Biyani is set to sign another deal to sell a controlling stake in his non-banking financial company, Future Capital Holdings (FCH). According to sources in the know, the Future group, owned by Biyani, will sell its 56 per cent stake in FCH to Warburg Pincus. The US-based private equity (PE) company is likely to pay Rs 180 per share of FCH, valuing the deal at Rs 650-700 crore. The group was also in discussion with other PE players, including Bain Capital, for selling its stake in FCH. FCH shares on Monday closed 0.33 per cent down at Rs 135.2 on the Bombay Stock Exchange (BSE). At the end of March, Pantaloon Retail and Kishore Biyani had 53.67 and 2.62 per cent stake in FCH, respectively. According to a statement filed with the BSE, Pantaloon Retail has transferred its promoter shareholding to Future Value Retail, a 100 per cent subsidiary of the Future Group. (For details log on to : http://www.business-standard.com/india/news/warburg-pincus-close-to-buying-majority-stake-in-future-capital/474352/)
RADICO KHAITAN BUYS ROYAL LANCER, ELKAYS WHISKY BRANDS FROM YEZDI
MUMBAI: Spirits major Radico Khaitan, the manufacturers of 8 PM whisky and Magic Moments vodka, has acquired the Royal Lancer and Elkays whisky brands from the staples of the Mysore-based Yezdi group, the one-time manufacturers of the famed Yezdi motorbikes. The whisky brands, which sell over half a million cases, are largely sold in Karnataka and Andhra Pradesh. Along with the brands, the Radico Khaitan group has also long-leased the 30-year-old Yezdi distillery, which has a capacity to produce over a million cases a year. Raju Vaziraney, chief operating officer (COO) of Radico Khaitan, while declining to comment on the valuation of the brands, told ET that they are planning to “increase the distillery capacity soon”. “This is a strategic buyout to make our group’s presence strong in Karnataka, Andhra Pradesh, etc, where the brands are very popular,” he added. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/liquor/radico-khaitan-buys-royal-lancer-elkays-whisky-brands-from-yezdi/articleshow/13142373.cms)
ESSAR PORTS MAY ENTER INTO STAKE SALE DEAL WITH PORT OF ANTWERP
MUMBAI: Ruia family-promoted Essar Ports is likely to sign a stake sale deal with Portof Antwerp, one of the largest ports in Europe, in the next two months, said Essar Ports MD Rajiv Agarwal. The company, which operates four port facilities at Hazira, Salaya,Vadinar and Paradip, will also increase its presence in container terminal business in Indiaas it looks to expand. “Talks are on at the moment, and we are likely to see it conclude in the next two months. Portof Antwerpis looking to invest in India. They see potential in us, and we thought it be worthwhile,” Agarwal said. He said the amount would come in as fresh investments and is not related to lowering promoter holding to 75% from the 83% to meet a recent norm from capital market regulator Sebi. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/transportation/shipping-/-transport/essar-ports-may-enter-into-stake-sale-deal-with-port-of-antwerp/articleshow/13142299.cms)
CIL, LIMPOPO GOVERNMENT INK PACT TO DEVELOP COAL MINES IN SOUTH AFRICA
NEW DELHI: The government today said Coal India (CIL) has signed a pact with government of Limpopo, South Africafor jointly identifying, exploring and developing coal mines. “CIL has executed a Memorandum of Understanding… with organisations owned by provincial government of Limpopo, South Africa to engage in joint initiatives of identification, exploration and development of coal assets,” Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to the Rajya Sabha. The minister also said that in order to execute the pact, it would be required to set up a subsidiary of the PSU firm in South Africa. Last year, the government of Limpopo, the northernmost provinceof South Africa, had approached CIL, requesting the PSU to form a joint venture (JV) with one of its public sector firms for acquiring coal mines there, a top official in CIL had said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/cil-limpopo-government-ink-pact-to-develop-coal-mines-in-south-africa/articleshow/13136201.cms)
MAX INDIA’S FORAY INTO SENIOR LIVING WORRIES INVESTOR ADVISORY COMPANY
NEW DELHI: The Amit Tandon-led investor advisory firm, IIAS, has raised concerns over a plan by health care player Max India to invest up to Rs 240 crore in a senior citizen services firm owned by promoter Analjit Singh and his daughter Tara Singh. Though the advisory firm is not against the investment plan, it has asked investors to seek more details. IIAS has also said the new investment will take the company’s total related party transactions to 40 per cent above the limits prescribed by the company law, whose risk level it rates “high”. Max India is seeking shareholder approval for a resolution authorising the board to make this related party investment, through a postal ballot. Investors are required to send their votes by Wednesday (May 16). (For details log on to : http://www.business-standard.com/india/news/max-indias-foray-into-senior-living-worries-investor-advisory-company/474348/)
YAMAHA TO INVEST R1,500 CRORE ON NEW PLANT IN TAMIL NADU
CHENNAI: Driven by a spurt in volumes in the last two-to-three years, coupled with an increasing demand for ‘deluxe’ motorcycles and scooters in India, India Yamaha Motor, a subsidiary of Japanese auto giant Yamaha, has decided to drive into Tamil Nadu for its third plant, considered to be the largest in the Asian region. The company on Monday entered into an agreement with the Tamil Nadu government to set up a new plant near Chennai with an estimated investment of R1,500 crore. The agreement was signed in the presence of chief minister J Jayalalithaa on Monday at the secretariat. “We are bullish on the Indian market, particularly on the scooter segment. The plant near Chennai, to commence from early 2014, will have an initial capacity of 400,000 units per annum and then the capacity will be scaled up to 1.8 million units per annum by 2018. This plant will become the largest in the Asian region for us and we have earmarked to invest R1,500 crore over five years,” Hiroyuki Suzuki, chief executive officer and managing director, India Yamaha, said. Suzuki said that the plant is coming up at an industrial part in Vallam Vedagal (Sriperumbudur) near Chennai on 125 acres of land. (For details log on to : http://www.financialexpress.com/news/yamaha-to-invest-r1-500-cr-on-new-plant-in-tamil-nadu/949283/)
JSW STEEL HAS CAPEX PLAN OF RS 6,000 CRORE IN FY13
MUMBAI: Private steel manufacturer JSW Steel has a capital expenditure plan of Rs 6,000 crore in the current financial year for expanding its steel capacity. “Our capital expenditure plan for the current fiscal is around Rs 6,000 crore, of which Rs 3,500 crore will be debt and the rest will be through the route of equity,” Joint Managing Director and Group CFO Seshagiri Rao told reporters here. JSW Steel, which has a 10 million tonnes steel plant at Vijaynagar in Karnataka, is currently under expansion phase to increase its capacity to 12 million tonnes. “We hope to complete the expansion of Vijaynagar unit to 12 million tonnes by FY14,” Chairman and Managing Director Sajjan Jindal said. He, however, added that the company would not increase the Karnataka plant capacity to 16 million tonnes as planned earlier, until there is clarity on iron ore supply issue. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/steel/jsw-steel-has-capex-plan-of-rs-6000-crore-in-fy13/articleshow/13139188.cms)
VINI TO INVEST RS 40 CRORE IN FOOD SUPPLEMENTS
AHMEDABAD: Former Paras Pharma co-founder Darshan Patel will launch nutraceuticals in the Indian market by 2012-end. Patel forayed into personal care category with Vini Cosmetics. Now the company will invest Rs 40 crore to launch food supplements, Patel told ET. The man who is credited with nurturing Paras personal care brands like Moov, Dermicool, Set Wet, Krack, parted ways from his elder brother in 2006 and started Vini Group of Companies in 2010. Mr Patel sold his one-third stake in Paras to PE Actis for $43 million, or less than Rs 200 crore. Paras finally was acquired by Dettol and Durex-maker Reckitt Benckiser for Rs 3,260 crore, 30 times Paras’ earnings before interest, tax, depreciation and amortisation (Ebitda) for 2009-10. Mr Patel has since launched Sundeo summer poweder, Whitetone face powder, 18+ deodorant, Jinjola talcum powder, 7X itch cream and Quco hair perfume in the Indian market. He had firmed up plans to launch nutraceuticals in 2010. Although the Japanese firm with which Vini had entered into a JV the same year, has backed out from its Indiaplans, Patel is undeterred. (For details log on to: http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/vini-to-invest-rs-40-crore-in-food-supplements/articleshow/13136558.cms)
CENTRE LOOKING TO TIE-UP IRON ORE FOR RASHTRIYA ISPAT EXPANSION
VISAKHAPATNAM: The Centre is trying its best to secure captive iron ore mines to help Rashtriya Ispat Nigam Ltd (Visakhapatnamsteel plant) in its second phase of expansion, according to the Union Secretary, Mr D.R.S. Chaudhary. The expansion will see the capacity increase to 11 million tonnes from 6 million tonnes. Mr Chaudhary, on his first visit to the plant after assuming charge, said here on Thursday that the lack of captive mines was the major handicap suffered by the Plant, but soon the problem may be mitigated, if not solved. “The Rajasthan Government has agreed to grant iron ore mines to the RINL at Bilwara. The Orissa Government has also agreed to clear two mines of the BIRD group of companies over which the RINL has the strategic control. I will visit Orissa along with the CMD of RINL to expedite the process. These steps will improve the situation to a great extent and the RINL can go ahead with the next phase of expansion,” he said. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3419539.ece)
MYANMAR OPENS FOR BUSINESS, INDIA INC TREADS CAUTIOUSLY
NEW DELHI: Foreign direct investment (FDI) into the country — one that is rich in resources but remains deeply impoverished — has grown over 100 times in the past few years. In 2010-11 alone, it soared to $20 billion from a much smaller $300 million during the previous year, according to IHS, a global information firm. However, much of this is still led by the Chinese. Over 70 per cent of total FDI inflows came from Chinese companies in the hydrocarbon sector, IHS data indicate. Three large Chinese projects, including one that involves constructing two pipelines for transporting Myanmarese and West Asian gas into China, were worth $8.27 billion. Hong Kong entities accounted for another $5.8 billion of investments in 2010-11, followed by Thailand, South Korea, Singapore, Malaysiaand Japanas other major investors. India, on the other hand, is only the 13th largest investor, with an investment of around $189 million in five projects. (For details log on to: http://www.business-standard.com/india/news/myanmar-opens-for-business-india-inc-treads-cautiously/474358/)
APRIL INFLATION UP TO 7.23%, KILLS HOPES OF RATE CUT
NEW DELHI: The spectre of stagflation has come to haunt India’s policymakers again with headline inflation accelerating to an unexpectedly high 7.23% in April from 6.89% in the previous month on dearer food and manufactured items, amid signs of a further weakening of investment climate. This has complicated the central bank’s task of striking a widely acceptable balance between its aims of controlling inflation and pushing growth. Prime Minister’s Economic Advisory Council chairman C Rangarajan warned on Monday the inflation numbers were “a very uncomfortable statistic”and clearly indicated that the Reserve Bank of India’s room for further monetary easing at the June review has been considerably squeezed. Curbing inflation would now be the RBI’s priority, he presumed. Finance minister Pranab Mukherjee said steps were being planned to curb food prices and stressed on the need for more cold storages and institutional support. (For details log on to : http://www.financialexpress.com/news/april-inflation-up-to-7.23-kills-hopes-of-rate-cut/949455/)
GOVT TO DECIDE FIRST ON 2G, DIAL TRAI ON OTHER ASPECTS
NEW DELHI: The government has worked out a strategy to defuse the crisis in the telecom sector triggered by the recent recommendations of the Telecom Regulatory Authority of India (Trai). Official sources said there is a near-consensus that the government should look at different aspects of the recommendations separately and act on the most urgent ones first. As per the Supreme Court order on April 24, auction of 2G spectrum in the 1,800 MHz band must be completed by August 31. Hence, the government, for now, will focus only on this aspect of Trai’s recommendations. Suggestions on refarming 800/900 MHz spectrum, auctioning 4G spectrum and liberalising spectrum will be dealt with separately. On these aspects, the government will seek fresh recommendations from Trai headed by its new chairman Rahul Khullar. Since there is no court deadline to decide on these aspects, action on that front can wait. (For details log on to : http://www.financialexpress.com/news/govt-to-decide-first-on-2g-dial-trai-on-other-aspects/949451/)
GLOOM TO DEEPEN: INDIA INC
India Inc expects the economic climate to turn worse before its gets better, with a deteriorating fiscal situation and a drop in foreign investments likely to define the country in the medium term, an ET Poll of CEOs to gauge business confidence has revealed. Along with dimming confidence in the government’s ability to steer the country out of the economic morass it finds itself in, the poll of 50 bosses of some of India’s most respected companies shows surprising patience, even sympathy, for the UPA, with more than half the respondents expecting it to retain power in the next general elections in 2014. Finance Minister Pranab Mukherjee, under whose watch the economy has slipped and who has been criticised by some for presiding over a bad fiscal slippage, high inflation and slowing growth, emerges from the poll looking good. On a scale of one (very poor) to 10 (excellent), Mukherjee is rated six and higher by as many as 29 CEOs. The UPA’s troubleshooterin-chief also gets the most votes – at 16 – as the best finance minister in the present situation, 10 more than his predecessor P Chidambaram and far higher than his boss Prime Minister Manmohan Singh, widely viewed as the father of India’s economic reforms. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/et-ceo-poll-on-upa-anniversary-economic-climate-to-worsen-before-getting-better/articleshow/13141658.cms)
INDIA FOR BIGGER INVOLVEMENT IN SCO OPERATIONS
NEW DELHI: India is unlikely to get full membership of the Shanghai Cooperation Organisation (SCO) at the grouping’s next month summit in China but will utilise the occasion to seek greater involvement, which might include participation in the Russia-China-led six-country-organisation’s counter-terror exercises, according to sources in the government. If the SCO accepts India’s willingness to join the exercises — massive air-ground offensives against entrenched irregular military formations — this will be the first time it will be joining war games being conducted by a bloc even if it is not primarily security-oriented in its disposition. Indiais also prepared for greater involvement in SCO’s routine round-the-year activities such as trade ministers’ meetings. It would also like closer collaboration with the SCO’s Tashkent-based Regional Counter-Terrorism Structure (RCTS). (For details log on to : http://www.thehindu.com/todays-paper/tp-national/article3419858.ece)
WILL SIGN FSA ONLY FOR CHANGE IN FUEL SUPPLY LEVEL: NTPC
NEW DELHI: Country’s largest power producer NTPC today said it would accept only the revised minimum fuel supply level and not other changes suggested for signing the new pact with Coal India. NTPC is among the many power generators who have refused to ink the revised Fuel Supply Agreement (FSA) with Coal India. “I will only sign the FSA with change in the trigger point, because that is the direction given by the government, why should I accept 10 or 15 more changes,” NTPC Chairman and Managing Director Arup Roy Choudhury told PTI. “The situation is dynamic. I need coal,” he added. Against the backdrop of acute fuel scarcity hurting power generation, the government has directed Coal Indiato sign FSAs with power generators and the minimum supply level has now been fixed at 80 per cent. (For details log onto : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/will-sign-fsa-only-for-change-in-fuel-supply-level-ntpc/articleshow/13136441.cms)
GOVT DOWNPLAYS NTPC’S OPPOSITION TO FSA, EVEN AS 29 STATIONS LEFT WITH 7 DAYS OF COAL
NEW DELHI: Even as the Government tried to downplay National Thermal Power Corporation Ltd’s (NTPC) stout refusal to sign the Fuel Supply Agreement (FSA) document prepared by Coal India Ltd (CIL) owing to its controversial clauses, the dry fuel supply situation in the country remains grim as 29 out of the 89 thermal power plants are left with less than a week’s stock. Coal Ministry, citing the latest Central Electricity Authority (CEA, which monitors coal stocks position on daily basis), has said that out of the 89 coal based thermal power stations in the country, as on May 8, 2012, 29 power stations had less than a week’s coal stocks. Minister of State for Coal, Pratik Prakashbapu Patil informed Rajya Sabha on Monday that due to short term production constraints, unloading constraints at power plants, and movement constraints of Railways, have affected coal supply to power utilities. (For details log on to: http://dailypioneer.com/business/65335-govt-downplays-ntpcs-opposition-to-fsa-even-as-29-stations-left-with-7-days-of-coal.html)
COAL MINISTRY ASKS CIL TO ADOPT NEW FSAS FOR UPCOMING PLANTS
KOLKATA: The coal ministry has asked Coal Indiato sign the new format fuel supply agreements with power units coming up between January 2012 and March 2015. The directive came in response to a clarification sought by the miner on whether it should sign supply pacts with new thermal plants on the terms mentioned in the existing contracts or the new agreements, which significantly dilute the miner’s supply obligations. “The ministry has asked us to sign the new FSAs for plants to be set up between January 2012 and March 2015,” Coal Indiachairman S Narsing Rao said. “We received the ministry’s clarification last week.” Coal Indiahad approached the ministry as a presidential directive asked it to sign FSAs for plants that came up between April 2009 and December 2011, but it did not mention anything about plants commissioned after this period. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/coal-ministry-asks-cil-to-adopt-new-fsas-for-upcoming-plants/articleshow/13142214.cms)
FOREIGN FIRMS LURE MINING ENGINEERS WITH FANCY PACKAGES & PERKS
NEW DELHI | BANGALORE: Firms such as Rio Tinto and BHP as well as companies in countries like Indonesia and South Africa are luring India’s best mining engineers with fancy packages and perks, creating a scarcity of talent here. Head hunters are tapping fresh graduates directly from institutes, and engineers with 5-15 years experience from mining companies, luring them with fat packages and perks such as company-funded weekends in cities where their families live. Indian companies that pay less than a third of what foreign firms pay and post engineers in rough, remote areas, are facing tough competition for talent, industry officials say. “Our clients in Indonesia, Australia, and Africa and also from places like Mauritania, Sierra Leone, Burkina Faso, keep looking for professionals – senior to mid-level – from the mining industry, and similarly from the energy sector, said Srinivas Nanduri, partner board & leadership hiring of Singapore-based Maxima Global Executive Search. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/jobs/foreign-firms-like-rio-tinto-bhp-lure-mining-engineers-with-fancy-packages-perks/articleshow/13141785.cms)
MOODY’S SAYS RIL REVISING RESERVE ESTIMATES IN KG D6 IS CREDIT NEGATIVE
MUMBAI: Global credit rating agency Moody’s says Reliance Industries (RIL) revising its assessment of its proved natural gas reserves in KG D6 by 6.7% and its proved developed reserves by 36.2% is credit negative for the company as it confirms the technical difficulties that it faces in its exploration and production (E&P) business from declining production and consequently lower cash flows. The agency said the 12.8 billion cubic meter reduction in proved reserves will reduce total cash flows from the project by approximately $1.7 billion, based on an existing gas price of $4.2 per million British thermal units ( BTU). The even greater decline of 38.8 billion cubic meters in proved developed reserves will require the company to make further investments, although at this stage we cannot estimate the amount of those additional investments. (For details log on to: http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/moodys-says-ril-revising-reserve-estimates-in-kg-d6-is-credit-negative/articleshow/13136428.cms)
NPCIL TO INSURE NUCLEAR ASSETS
NEW DELHI: Nuclear Power Corporation of India Ltd (NPCIL) has proposed to insure its nuclear assets, including the ‘nuclear island’ that holds core reactors. It has said so to the government. The idea has been prompted by the belief that reactor use would be more and more of a commercial nature, with the increasing demand for energy. Currently, reactors are insured only till the time they are not operational. As soon as the fission material is fired into the reactors, the insurance cover ends. NPCIL bears the responsibility of any damages. One issue that prevented insurance was existing government guidelines that bar inspection or survey of nuclear facilities. Since Indiais not a signatory to the non-proliferation treaty, it did not permit any inspection of its facilities. “The government would have to modify rules if it wants to insure assets,” said an official. When asked, officials of the department of atomic energy would not comment. (For details log on to : http://www.business-standard.com/india/news/npcil-to-insure-nuclear-assets/474335/)
TRAI CAPS TV AD DURATION AT 12 MINUTES
NEW DELHI: The Telecom Regulatory Authority of India (Trai) on Monday capped the duration of advertisements on television at 12 minutes per hour. This reverses its recommendation in March this year to halve ad duration to six minutes per hour on TV channels. The regulatory body also held that any shortfall in ad duration in a clock hour cannot be carried over by the broadcaster. The regulations are part of an order termed ‘Standards of Quality of Service Regulations 2012’. Also, ad breaks during live broadcast of sporting events have to coincide with breaks in the sporting action, says Trai. The minimum time gap between consecutive ad breaks is 15 minutes, except in movie channels, where it has to be 30 minutes. Broadcasters can also only display full-screen ads on television. Part-screen or drop-down ads will not be permitted, the regulator said. Besides, the audio levels of advertisements on a channel should not be higher than those of the programmes being telecast. (For details log on to: http://www.business-standard.com/india/news/trai-caps-tv-ad-duration-at-12-mins/474338/)
GOM ON PHARMA PRICING TO GATHER MORE FEEDBACK
NEW DELHI: The group of ministers (GoM) on the National Pharmaceutical Pricing Policy, which met on Monday to seek feedback from various industry associations, is likely to meet again on Friday to listen to more stakeholders, before finalising a mechanism to cap the prices of essential medicines. The GoM, headed by Agriculture Minister Sharad Pawar, is expected to start its final deliberations on the policy in June. Speaking to reporters after the meeting, Pawar said, “We have not started discussing the basic issues because we are just giving an opportunity to others to present their views.” He added at the next meeting, too, stakeholders would give their feedback. On Friday, two non-government organisations and member of Parliament Jyoti Mirdha would put their presentations before the GoM. Five industry organisations, including the Organisation of Pharmaceutical Producers of India, the Indian Pharmaceutical Association and an association of chemists and druggists gave their inputs to the high-level ministerial panel on Monday. (For details log on to : http://www.business-standard.com/india/news/gompharma-pricing-to-gather-more-feedback/474333/)
INDIAN IT INFRA MARKET TO REACH $3 BILLION BY 2016
The Indian information technology (IT) infrastructure market, comprising servers, storage and networking equipment, would reach $3 billion by 2016. According to research firm Gartner, the IT infrastructure market is expected to reach $2 billion in 2012, a 10.3 per cent increase over 2011. “Technology’s role in enterprises is increasing and IT’s closer alignment with business, and vice-versa, is a topic of much focus within Indian enterprises today. Soon, there will be a time when there is no IT strategy, only a business strategy, as leading CIO’s are seeing technology as a business enabler and an engine for innovation,” said Aman Munglani, research director at Gartner. Revenue growth will be primarily driven by ongoing data centre modernisation and new data centre build outs. Servers are the largest segment of the Indian IT infrastructure market, as revenue is expected to reach $754.5 million in 2012, and grow to $967.2 million in 2016. (For details log on to : http://www.business-standard.com/india/news/indian-it-infra-market-to-reach-3-bn-by-2016/474345/)
ENTREPRENEURS BREATHE LIFE INTO DYING BREED OF GENERAL PHYSICIANS
NEW DELHI: Niti Pall is neither an environmentalist nor a curator. Yet, this doctor-entrepreneur from the UK, a cancer survivor herself, is zealously trying to revive an endangered species — the general physician — and restore their natural habitat, the neighbourhood clinic. In June 2011, Pall raised over $1.5 million from friends and family to float her venture Pathfinders Health India. The venture set up its first clinic in October 2011, followed by three more. A month earlier in Mumbai, Wellspring Healthcare founders Gautam Sen — himself a doctor — and son Kaushik Sen set up their first primary healthcare centre, their dream of the previous six years. In six months, they have hired 19 full-time doctors and now have a network of four clinics in Mumbai. (For details log on to : http://www.financialexpress.com/news/entrepreneurs-breathe-life-into-dying-breed-of-general-physicians/949456/)
L&T NET UP 13.9%, WARNS OF VOLATILITY
MUMBAI: India’s largest engineering conglomerate Larsen & Toubro (L&T) on Monday reported standalone net profit for the quarter ended March 2012 at R1,920.41 crore, up 13.89% year-on-year. The bottom line was driven by better-than-expected performance of its core engineering and construction (E&C) business, but the company warned of volatility in commodity prices that could hurt margins this fiscal. Profits were up despite slower order inflows and deferred project bids, which saw the engineering major miss its order inflow guidance by 13%. “There has been a deviation in projects due to postponements rather than cancellations,” said R Shankar Raman, L&T’s chief financial officer. The company believes it can grow both revenues and orders by 15-20% in 2012-13. Last year, L&T received orders worth R70,574 crore, including engineering and construction orders worth R63,574 crore. As on March 2012, the company had a total order book of R1,45,723 crore, 10% of which is from the hydrocarbon segment. (For details log on to : http://www.financialexpress.com/news/l&t-net-up-13.9-warns-of-volatility/949457/)
GOVT INTRODUCES PUBLIC PROCUREMENT BILL TO CHECK CORRUPTION
NEW DELHI: In order to check corruption and ensure transparency in public procurement, the government on Monday introduced a Bill in the Lok Sabha under which a public servant can be imprisoned for up to five years for accepting bribe and vitiating the bidding process. The Public Procurement Bill 2012, introduced by finance minister Pranab Mukherjee, seeks to regulate award of government contracts of over R50 lakh with the object of ensuring ‘‘transparency, accountability and probity’’. The Bill, which was being pushed in the wake of campaign against corruption by civil society last year, is aimed at ensuring ‘‘fair and equitable treatment of bidders, promoting competition, enhancing efficiency and economy, and maintaining integrity and public confidence in the procurement process’’. (For details log on to: http://www.financialexpress.com/news/govt-introduces-public-procurement-bill-to-check-corruption/949269/)
IT HIRING REGAINS UPTAKE, BUT RECRUITMENT FLAT IN BPO, ITES
NEW DELHI: When it comes to hiring new talent, the recessionary blues seem to be over for the $80-billion IT sector and the recruitment aggression has reached pre-recession levels of 2008. But same is not the case with the relatively new BPO/ITeS sector. In fact, this sector has seen a flat growth rate in hiring for the last two years. HR firms such as Randstad India, Naukri.com, Monster.com feel that though the IT, hardware and software sector continued to increase its recruitment at least at the rate of 10% year-on-year, the BPO sector hiring was flat or even negative for the past two years. The reason being slow recovery and more BPO jobs in other countries like the Philippines. E Balaji, managing director and CEO, Randstad India, said, “About four to five years back, the BPO sector was hiring very aggressively in Indiaas the culture of call centres had just picked up. But recently, most of the jobs are going to the Philippines, China, Malaysia etc. All the BPO companies have reached critical mass and feel that adding more headcount will not add more value to their operations. In fact, BPO hiring is now flat or negative for the past few years and has not picked up. But IT hiring has been picking up at a 9-10% year-on-year rate.” (For details log on to : http://www.financialexpress.com/news/it-hiring-regains-uptake-but-recruitment-flat-in-bpo-ites/949311/)
OUTLAY FOR EDUCATION IN 12TH PLAN TO BE FOUR TIMES HIGHER
NEW DELHI: The government aims to spend R4.13 lakh crore on higher education during the 12th Plan period (2012-17), about four times the amount allocated in the previous plan at R84,943 crore. According to the ministry of human resource development (MHRD), majority of the funding would be used to set up new institutions and expanding the existing ones. The list includes state universities, general degree colleges and professional and technical educational institutions. In the previous plan period, the share of education in the total plan outlay correspondingly increased from 7.7% to 19.4%. Thus, around 50% of the 11th plan outlay was devoted for elementary education and literacy, 20% for secondary education and 30% for higher and technical education. “The thrust of the 12th plan is on consolidation of the existing institutes and strengthening the existing central universities, new Indian Institutes of Technology, Indian Institutes of Management and state universities with infrastructure and faculty. More than establishing new institutes, quality improvement by funding states to improve their education infrastructure is the focus,” said a ministry official. (For details log on to : http://www.financialexpress.com/news/outlay-for-education-in-12th-plan-to-be-four-times-higher/949255/)
SAIF PARTNERS TO STAY PUT IN JUST DIAL POST-IPO
NEW DELHI: Just Dial’s leading institutional investor, SAIF Partners, will stay invested in the company even as the search engine’s R360-crore public issue — the biggest by an Indian company in the consumer internet business — hits the market this June. This is in line with the private equity fund’s strategy of not exiting its investments even as the invested company goes public. SAIF Partners still holds almost 33% shares of its flagship investment in MakeMyTrip that had a dream debut at Nasdaq in mid-2010. SAIF Partners is one of the leading institutional investors in the company. As per Just Dial’s Draft Red Herring Prospectus filing, SAIF Partners holds a 9.32% pre-issue, prior to conversion of the preference shares stake. (For details log on to : http://www.financialexpress.com/news/saif-partners-to-stay-put-in-just-dial-postipo/949438/)
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