NEW DELHI: A little-known Kolkata-based businessman is close to buying a majority stake in Rajasthan Royals for around $200 million, making it the first time an IPL team could change hands in the format’s brief yet eventful fiveyear history. Mannoj Kumar Jain, who heads the obscure Jain Group of Industries with interests in infrastructure, steel, energy and real estate, has offered to buy out a majority of team’s shareholders who between them own slightly less than 90% stake of the team’s holding company, Jaipur IPL Cricket Pvt Ltd, cricket board officials and at least two people familiar with the negotiations told ET. Among the likely sellers include Nigeria-based NRI businessman Suresh Chellaram with a 44.1% stake, Emerging Media, a PE firm promoted by UK-based investor Manoj Badale that owns 32.4% and Lachlan Murdoch, the eldest son of media mogul Rupert Murdoch, who owns a 11.7% stake in the team, these people said. Londonbusinessman Raj Kundra and Bollywood star Shilpa Shetty, who own the remainder, are likely to remain invested and Jain too wants them to remain faces of the team, they added. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/kolkata-businessman-mannoj-kumar-jain-in-talks-to-acquire-almost-90-stake-in-ipl-team-rajasthan-royals/articleshow/12334463.cms)
WORLDSPACE MAKES A COMEBACK
MUMBAI: Timbre Media, Bangalore-based start-up, that had acquired the lice-nce to use the WorldSpace brand, is re-launching its services for mobile users in India. WorldSpace, the satellite radio network, went off air on December 2009, disappointing the 0.45 million users who had invested in the radio sets and premium subscriptions. WorldSpace will be competing with players like Radio Mirchi and Big FM that too have given applications for mobile radio. Mirchi Mobile, the value-added service application launched by Radio Mirchi, has an estimated 8-10 million subscribers, with 50 per cent active. Users pay about Rs 10 per week for 100 hours of listening. Entertainment Network India Limited(ENIL)estimates the end-consumer revenue potential for Mirchi Mobile to be Rs 1 billion. Of this, it is estimated that telecom operators’ share would be 60-70 per cent, value adders like technology and infrastructure players would keep 20-30 per cent, and content providers like radio would keep 10 per cent. (For details log on to : http://www.business-standard.com/india/news/worldspace-makescomeback/468368/)
ADVANCED SYSTEK TO HIVE OFF STAKE
AHMEDABAD: Advanced Systek is in the process of hiving off its stake to a diversified global giant engaged in technology, finance and services, interested in the Indian company that provides terminal automation systems to oil & gas industry. Headquartered in Vadodara, Advanced Systek caters to firms such as ONGC, IOC, BPCL, HPCL, Oil India, Shell, Petrobras and VOPAK. It claims to have nearly 60% of the Indian market for terminal automation systems. Sources close to the development said the acquirer is a multinational giant offering engineering solutions to energy sector. “The acquirer will pick up controlling stake in Advanced Systek and it has expressed interests in complete buyout subsequently. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/advanced-systek-to-hive-off-stake/articleshow/12336095.cms)
WOODLAND TO SPEND RS 12 CRORE TO DEVELOP SKIN, FOOT-CARE PRODUCTS
MUMBAI: Homegrown footwear and apparel brand Woodlandwill invest about Rs 12.5 crore to develop a skincare and foot-care range that it plans to launch by September. “We feel customers need much more than shoes and garments, so we are introducing this skincare range. In the first year, we are seeing a business of Rs 50 crore from this. The investment (Rs 12.5 crore) will be more on the R&D side,” Woodland Managing Director Harkirat Singh told PTI here. The products, to be developed as part of a contract manufacturing agreement, will be expensive as it will be imported from Germany, including the packaging components, he added. Singh declined to identify the German partner. The products like body and sunscreen lotions, massage oils and face washes will be initially sold through the company’s 350 outlets and then via retail stores like Shoppers Stop, Reliance Trends and Lifestyle, Singh said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/garments-/-textiles/woodland-to-spend-rs-12-cr-to-develop-skin-foot-care-products/articleshow/12333745.cms)
GODREJ TO INVEST IN OMAN HEALTHCARE SECTOR: REPORT
The Godrej group is going to make substantial investments in Oman’s thriving healthcare facilities and allied services industry, according to senior company officials in the MENA region. They emphasised that the investments will be purely in healthcare and not ‘medical care’. The regional heads of the USD 3.6 billion group with interests in businesses such as real estate, FMCG and appliances, said the investments will be made in partnership with Mohsin Haider Darwish (MHD), one of Oman’s leading family business empires. “We are in the final phase of discussions of investing hugely in the flourishing healthcare segment of global standard and the first entity in this segment will come up by June this year,” Bomi S Gandhi, General Manager, Middle Eastand North Africa (MENA) region, and G Srinivas, Deputy General Manager, International Business, told the Oman Daily Observer. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/godrej-to-invest-in-oman-healthcare-sector-report/articleshow/12327439.cms)
SAHARA PLANS TO ENTER GOLD RETAIL BUSINESS
MUMBAI: The Saharagroup, which has interests in finance, entertainment, real estate and media, plans to enter the gold retail business. The conglomerate, which recently launched a chain of retail stores, plans to export, import and deal in “gold, silver, bullion, jewellery ornaments and precious and semi-precious metals and stones” through Sahara Q Gold Mart Ltd. This company will also act as an investment and portfolio management firm and deal in “debenture stock, bonds, gold bonds, units”, said the memorandum of association of the firm, filed with the Registrar of Companies (RoC) in January. Registered in Maharashtra, it has an authorized capital of Rs.5 crore. Mint has reviewed a copy of the filings of the Saharagroup with RoC. The group also plans to expand its retail business into direct selling through multi-level marketing. (For details log on to : http://www.livemint.com/2012/03/19225847/Sahara-plans-to-enter-gold-ret.html?atype=tp)
REMOS LIGHT SPORTS AIRCRAFT SET TO ENTER INDIA
CHENNAI/HYDERABAD: Remos Aircraft GmbH, a Germany-based company that manufactures high-tech components for the aviation industry and builds light sports aircraft (LSA), is all set to hover over the Indian skies. “We are in the process of obtaining certification for our Remos GX glass cockpit LSAs from the Directorate General of Civil Aviation and the Union ministry of civil aviation. It should take another six months for the process to complete,” AN Hanfee, adviser to SRK Aviacom, the exclusive dealership for Remos in Indiaand South Asia, told Business Standard during the recently concluded India Aviation 2012 here. The Remos LSA is relatively a simple aircraft with a shorter training/flying schedule. The LSA is limited to two seats. The Remos GX aircraft accelerates rapidly and takes off in less than 300 feet. The climbing power is more than 30 per cent higher than other light aircraft, and a climb speed of 80-90 miles per hour is reached within a short time. (For details log on to : http://www.business-standard.com/india/news/remos-light-sports-aircraft-set-to-enter-india/468263/)
INDIA INC FEELS TREMORS OF FINANCE MINISTER’S TAX PROPOSALS
MUMBAI: The unbridled freedom and powers given to tax authorities in this year’s Budget could spark a furious face-off in the coming months between companies determined to protect their profits in a slowing economy and an equally resolute tax department eager to wrest every last bit of revenue, experts warn. Last Friday’s Union Budget, which increased taxes and gave almost limitless powers to the tax department to check evasion and increase tax collection, has been widely criticised for its excessive focus on increasing revenue and ignoring the damaging aftereffects, higher litigation and messy court room battles. Tax officials, once the Budget is passed, will have powers to check all transactions between companies and its subsidiaries, affiliates, investors and foreign partners for tax eligibility. The result, experts warn, will be a sharp increase in costs, compliance and litigation. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/budget-2012-india-inc-feels-tremors-of-finance-ministers-tax-proposals/articleshow/12335969.cms)
MEGA POWER PLANT EQUIPMENT IMPORTS WILL ATTRACT 21% DUTY
NEW DELHI: The government, which has extended help to the crisis-ridden power sector by removing duty on imported fuel and opening access to cheap overseas funds, is likely to whittle down the benefit with an impost on imported equipment for mega power projects. A duty of 20.94% will be imposed on equipment imports for mega power projects, bringing them on par with other power projects. The move will take away the incentive available to a large number of power generators to source cheap equipment from overseas markets, particularly China. As per the note finalised by the power ministry for Cabinet Committee on Economic Affairs’ approval, imported power equipment for mega power projects will attract 5% basic customs duty, 12% countervailing duty (after the excise hike to 12%) and 4% special additional duty. Cumulatively, this works out to 20.94%. Of this, the CVD is equivalent to the excise duty for domestic producers (which Bhel and L&T will have to pay) and SAD is in lieu of state VAT. The basic customs duty alone will act as an import tariff. (For details log on to : http://www.financialexpress.com/news/mega-power-plant-equipment-imports-will-attract-21-duty/925772/)
AT RS 28/DAY, THE OFFICIAL POOR GET POORER BUT INDIA’S POVERTY FALLS
NEW DELHI: New Planning Commission data show poverty has declined eight per cent in the past five years. But, the bad news is the updated poverty estimates of the Tendulkar Committee have lowered the poverty line itself from Rs 32 a day to Rs 28. This is bound to revive the bitter debate about who is poor, started first by a Supreme Court affidavit filed by the Planning Commission last year when it referred to the 2004-05 poverty line definition of Rs 32 a day. The new, updated data released by the commission on Monday, based on the price indices computed from the 66th Round NSS (2009-10) data on Household Consumer Expenditure Survey, say anyone who has Rs 28 to spend daily is out of poverty. Poverty in the country, according to the new data, declined 7.4 percentage points in the past five years, from 37.2 per cent to 29.8. Between 2004-05 and 2009-10, it declined by an average of 1.46 per cent a year, much faster than the 0.74 per cent annual decline in the preceding 10 years. (For details log on to : http://www.business-standard.com/india/news/at-rs-28dayofficial-poor-get-poorerindias-poverty-falls/468373/)
TATA MOVES UP IN APPLE-LED GLOBAL BRAND PECKING ORDER
MUMBAI: Tata has moved up the ladder in a list of the world’s most valued brands despite the group’s name cropping up in the 2G-related tapes and group Chairman Ratan Tata’s dream project, Nano, having to contend with technical problems. The annual survey undertaken by international agency Brand Finance, to be released soon, has placed Tata as the only Indian brand in the list of top 50, populated by Apple (number one in the pecking order), Google, Microsoft and Coca-Cola to name a few. Tata is the 45th most valued brand in the world, compared to 50th last year. The valuation of the Tata brand has been pegged at $16.3 billion (Rs 81,500 crore), an increase of over eight per cent over its brand value in the survey last year. The current market cap of the group is Rs 4,47,000 crore. (For details log on to : http://www.business-standard.com/india/news/tata-movesin-apple-led-global-brand-pecking-order/468370/)
KINGFISHER’S LICENCE TO FLY UNDER THREAT
NEW DELHI/MUMBAI: It was a mixed day for Kingfisher Airlines: It faced the prospects of its flying licence being cancelled; its chairman, Vijay Mallya, was asked by the Directorate General of Civil Aviation (DGCA) to present a clear picture of the cash-strapped carrier; the service tax department threatened to drag it to the court over non-payment of dues; and the Income Tax Appellate Tribunal stayed the recovery of dues from the airline. Mallya will meet DGCA chief E K Bharat Bhushan tomorrow to explain his plans to revive the airline. The beleaguered airline was served a show-cause notice towards the end of February, asking why its licence should not be suspended, as it had made unannounced cancellations. DGCA had issued the notice in the wake of a series of flight cancellations and the airline’s inability to pay salaries on time. (For details log on to : http://www.business-standard.com/india/news/kingfishers-licence-to-fly-under-threat/468364/)
KARNATAKA GOVT TALKS TO HPCL, GAIL TO SUPPLY GAS
MUMBAI: The Karnataka government is in talks with Indian and international energy companies to arrange gas for three power plants for which it is planning to seek bids. Currently, it is in talks with GAIL India and Hindustan Petroleum Corporation Ltd (HPCL) to procure about 26 mmscmd for a total gas capacity of 2,100 Mw. According to a person close to the development, after the government ties up the gas, it would approach private power producers to bid for these three power plants. Neither HPCL nor GAIL responded to e-mailed queries. The state government made failed attempts to seek bids for three power plants at Davangere, Gadag and Belgaumin 2010,. Each of these power plants have a capacity of 700 Mw each, and entail a project cost of Rs 3,500 crore. However, private power producers had expressed concerns on their ability to procure gas by themselves. When these projects were initially planned, they expected at least some of the gas required to run these projects would come from domestic sources. However, it shifted to complete imported gas or liquefied natural gas (LNG) after the domestic gas situation in the country became lean as RIL’s D6 block’s production, in Krishna Godavari district dropped. (For details log on to : http://www.business-standard.com/india/news/karnataka-govt-talks-to-hpcl-gail-to-supply-gas/468329/)
CURRENT ACCOUNT DEFICIT PAINS: IMPORT CURBS LIKELY
NEW DELHI: After raising the customs duty on gold, the government may consider imposing curbs on imports of some other commodities to keep the widening current account deficit (CAD) in check. “Curtail CAD to the extent feasible because otherwise, Indiamay face problems in the years to come. If we cross a CAD of 3.5 per cent (of gross domestic product next financial year), we need to see which imports can be curbed without adversely impacting the growth,” Finance Secretary R S Gujral said after a Budget interaction organised by the Confederation of Indian Industry. Despite protests by bullion traders against the increase in basic customs duty on gold imports, Gujral justified the decision, saying it was done to channelise domestic savings to more productive sectors. (For details log on to : http://www.business-standard.com/india/news/cad-pains-import-curbs-likely/468375/)
INDIA‘S WEB ECONOMY TO TOUCH RS 11L CRORE BY 2016: STUDY
MUMBAI: The Indian internet economy is projected to touch Rs 10.8 trillion by 2016, according to a report in the The Boston Consulting Group’s Connected World Series study. Indian internet economy that contributed Rs 3.2 trillion to the overall economy in 2010 represents 4.1 per cent of the gross domestic product. The report ‘The $4.2 trillion Opportunity: The Internet Economy in G-20’, further notes that if the internet were a sector, it would be the eighth largest in India. It is driven especially by exports of information technology services — net exports make up 59 per cent of the Indian Internet economy, while consumption is only 20 per cent. (For details log on to : http://www.business-standard.com/india/news/indias-web-economy-to-touch-rs-11l-cr-by-2016-study/468341/)
PAY HEFTY, BECOME PART OF AN IIM BRAND
It will soon no longer be necessary to be a Nobel laureate or a pioneer in a discipline to get a gold medal at an Indian Institute of Management (IIM) to be named after oneself. An interested party needs to only be willing to part with Rs 25 lakh and the coveted gold medal will bear the name of the individual or corporate donor for 10 years, when the scheme at IIM Ranchi becomes operational, says director M J Xavier. His officials said Bokaro Steel and JSW Steel had already sent feelers in this regard. The donor will not just be a sponsor of the medal but the award, given to academic achievers, will be named after the donor as well. Traditionally, in educational institutes across the world, these are named mostly after celebrated alumni. A medal in IIM Calcutta, for example, is named after B C Roy. Another is named after Srikanth Damalra, an alumnus now no more. (For details log on to : http://www.business-standard.com/india/news/pay-hefty-become-partan-iim-brand/468369/)
TRAI FOR 50% CUT IN AIRTIME OF PAY TV ADS
NEW DELHI: In a move that may completely upset the business plans of pay television broadcasters whose 72% revenue comes from advertisements, the sector regulator has proposed a 50% cut in airtime of ads. The regulator also wants to limit the frequency of television advertisements on television to four breaks for general channels, three breaks for movie channels, and one break for sports channels and strict norms for running scroll ads for news broadcasters among other measures. “No free-to-air channel should carry ads exceeding 12 minutes in an hour. For pay channels, this limit should be six minutes. The 12 minutes of ads should not be in more than four sessions in one hour, Trai said in its latest consultation paper. Trai has floated this paper suo moto to safeguard the interest of all stakeholders. Trai wants all comments and views to be submitted by 27 March and counter-comments by 2 April. (For details log on to : http://www.financialexpress.com/news/trai-for-50-cut-in-airtime-of-pay-tv-ads/925673/)
DOT TO COMPLETE AUCTION PROCESS BY JAN-FEB
NEW DELHI: The government would complete the process of spectrum auction, including for 2G services, by January-February next year for better telecom services and to keep fiscal deficit under control. Addressing post-budget CII seminar, finance secretary R S Gujral said that the department of telecommunication has indicated that the process of auction (for 4G and 2G) will be cleared by January to February. He further said that the Supreme Court has asked the DoT to complete the 2G auction process in a period of three to four months. However, more time will be required. Last month, the SC had cancelled 122 telecom licences, awarded under the then telecom minister A Raja, terming them illegal. It had also asked the government to conduct fresh auctions within four months. (For details log on to : http://www.financialexpress.com/news/dot-to-complete-auction-process-by-janfeb/925811/)
FM’S EXCISE HIKE NOT A HIT WITH MEDIA INDUSTRY
NEW DELHI: This Friday’s show by finance minister Pranab Mukherjee wasn’t a hit at the box office. The Union Budget has largely come as a dampener for the media & entertainment industry. The hike in service tax rate to 12% is expected to pinch the entertainment sector, which will probably pass it on to customers in the form of costlier movie tickets, music CDs, music on memory sticks. Also expected is a hike in endorsement fee for celebrities, fees charges by artists, musicians, singers and performing artists among others. The Budget brings in bad news for foreign players in India, columnists writing in Indian journals, theatre personalities, radio/television artists, musicians, writers and sports commentators. Their gross receipts will now attract tax at the rate the of 20% instead of 10%. (For details log on to : http://www.financialexpress.com/news/fms-excise-hike-not-a-hit-with-media-industry/925851/)
DEBT-RIDDEN TEXTILE INDUSTRY FINDS NO SUPPORT STRINGS FROM PRANAB
NEW DELHI: The textile industry, which has been grappling with losses for the second consecutive year, has got little succour from the Budget. The Technology Upgradation Fund Scheme hasn’t been extended to the 12th Five Year Plan, dashing the hopes of the industry. The restructuring of loans for the debt-ridden sector has also not been announced. While the Confederation of Indian Textile Industry (Citi) had requested for removal or reduction of the excise duty on man-made fibres, the duty has gone up from 10% to 12%. Citi chairman SV Arumugam said that though the increase is part of increase in the standard rate itself, it would make India’s MMF-based textile industry less competitive. Arumugam said that abolition of the custom duties on automated shuttle-less looms and its parts is a welcome move since the weaving industry needs urgent modernisation. The concessional rate of 5% custom duty applicable to several other machines have been retained for new machines but increased to 7.5% for second-hand machines. (For details log on to : http://www.financialexpress.com/news/debtridden-textile-industry-finds-no-support-strings-from-pranab/925848/)
RIL’S KG GAS OUTPUT AT ALL-TIME LOW, SHARES FALL
MUMBAI: Gas production from Reliance Industries’ Krishna-Godavari D6 exploration blocks off the Andhra Pradesh coast hit an all-time low of about 28 million standard cubic metres a day during the week ended March 4 as it shut six wells due to water and sand ingress. India’s most valuable company, which invested roughly $5.6 billion in the field, had started pumping out 30 mmscmd of gas from Dhirubhai-1 and Dhirubhai-3 gas fields from April 2009, but output declined over the years to 28.16 mmscmd, news agencies quoting RIL’s status report to the oil ministry said. On Monday, RIL shares fell sharply by 2.21% to R754.90 a piece after trading at the day’s high of R782 on the Bombay Stock Exchange as the benchmark 30-share Sensex fell 1.1% to 17273.37 points. Investors lost R5,597 crore as the company’s market cap fell to around R2.74 lakh crore. “Our partner British Petroleum, an expert in deep-water drilling technology, is conducting a technical study,” a company official said. “The study will be completed in a couple of quarters.” (For details log on to : http://www.financialexpress.com/news/rils-kg-gas-output-at-alltime-low-shares-fall/925861/)
DEMAND FOR JEWELLERY MAY DECLINE ON HIGHER CUSTOMS & EXCISE DUTIES
MUMBAI: Demand will dip and buyers have to pay more to buy jewellery from April as sellers will pass on the doubling of customs duty to 4% and a 1% excise duty on unbranded jewellery proposed in the Budget. “This excise duty will directly increase the input cost of gold procured by us and, therefore, lead to a rise in the cost of jewellery, which will need to be absorbed or passed on to the consumer,” said Sandeep Kulhalli, vice-president, retail and marketing, Tanishq, the jewellery division of Titan Industries. Hike in customs duty and excise would mean an increase of about R825 for 10 gm from now. On Monday, 10 gm gold was quoted at R28,540 on the benchmark Multi Commodities Exchange index. (For details log on to : http://www.financialexpress.com/news/demand-for-jewellery-may-decline-on-higher-customs-&-excise-duties/925869/)
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