SCHRODERS SET TO ACQUIRE 30% STAKE IN AXIS AMC
MUMBAI: Schroders, the UK-based asset management giant that manages close to $291 billion in assets, is set to acquire nearly 30 per cent stake in Axis Asset Management Company, sources familiar with the deal have told Business Standard. The transaction will help Schroders revive its Indiapresence and end Axis Asset Management Company’s search for a strategic partner in the mutual fund business. While two other companies had evinced interest in buying a stake in the asset management company promoted by Axis Bank, sources say Schroders is set to seal the deal. A senior management team from the firm’s Londonheadquarters is scheduled to visit Mumbai next week to finalise the transaction. In the mutual fund industry, deals are valued on the basis of the asset mix of the fund house, network strength, long-term earning prospects and profitability. The deal value increases if the assets are more in equity schemes. This is because these schemes earn better commissions compared to debt and other hybrid funds of the same tenure. (For details log on to : http://business-standard.com/india/news/schroders-set-to-acquire-30-stake-in-axis-amc/467689/)
ICVL MAY BUY COAL MINE IN AUSTRALIA SOON
NEW DELHI: International Coal Ventures Ltd (ICVL) today said it is now in the final stages of acquiring a coking coal mine in Australia’s BowenBasin. “ICVL is nearing its first acquisition for a prime hard coking coal mine in the heart of BowenBasinin Australia,” ICVL Chairman C S Verma said at a coal summit here. BowenBasinis rich in coal resources and contributes significantly to the overall production of coal in Australia, which meets nearly 40% of India’s coking coal imports. Verma, who also heads state-run Steel Authority of India (SAIL), however, did not give further details. ICVL is a joint venture company between SAIL, Coal India, Rashtriya Ispat Nigam and NMDC. NTPC was also initially a member of the special purpose vehicle, but later quit. SAIL is lead partner of ICVL. (For details log on to : http://business-standard.com/india/news/icvl-may-buy-coal-mine-in-australia-soon/160294/on)
ASIA MOTORWORKS ACQUIRES FAMILYCREDIT FROM SOCIÉTÉ GÉNÉRALE
NEW DELHI: Mumbai-based commercial vehicles maker Asia Motorworks today said it has fully acquired FamilyCredit Ltd from France’s Societe Generale Consumer Finance for an undisclosed sum in an all-cash deal. “The acquisition of FamilyCredit provides us a pan Indiaasset finance franchise,” Asia Motor Works Managing Director Anirudh Bhuwalka said in a statement. Kolkata-headquartered FamilyCredit is a Non-Banking Financial Services Company (NBFC). It was a wholly-owned subsidiary of Societe Generale Consumer Finance, a division of the Specialised Financial Services of Societe Generale Group, France. As per information available on its website, the company has over 3,00,000 customers as on March 31, 2011 with 53 outlets in 17 states and two UnionTerritoriesin India. It is into providing loans for new and used cars, along with two -wheelers. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/auto/auto-components/asia-motorworks-acquires-familycredit-from-socit-gnrale/articleshow/12248192.cms)
HCL TECHNOLOGIES BAGS $250-300 MILLION OUTSOURCING DEAL FROM UBS
BANGALORE: Continuing its winning streak in Europe, HCL Technologies, India’s fourth-largest information technology (IT) services company, is understood to have bagged a large outsourcing deal from Swiss banking major, Union Bank of Switzerland (UBS). The multi-year contract is estimated to be in the range of $250-300 million, thus making it the largest contract for the company in the banking, financial services and insurance (BFSI) space. According to sources in the company, HCL Technologies will deploy about 1,000 professionals to handle this project who will be located across the globe including India. Besides, the company is also setting up an offshore delivery centre (ODC) in Bangalorefor UBS, is expected to be operational from April 1. Industry sources say going by the number of people HCL is planning to deploy for UBS, the contract would fetch the company revenues of anywhere between $50-65 million per annum. In response to email queries by Business standard, spokespersons at UBS and HCL Technologies declined to comment. “We do not comment on rumours,” they said in separate email statements. (For details log on to : http://business-standard.com/india/news/hcl-technologies-bags-250-300-mn-outsourcing-dealubs/467700/)
TITAN’S FASTRACK PLANS GLOBAL FORAY
CHENNAI/BANGALORE: Fastrack, the Rs 600 crore youth accessories brand from Titan’s stables, is laying the foundation to go international. The retail chain believes that there is demand in the emerging markets for its products, and also where there is a sizeable Indian population. Some of the countries it is looking at are Brazil, China, Vietnamamong others. This strategy may help it speed up its target to be a Rs 3,000 crore brand in five years, from the Rs 600 crore brand that it is today. This is in addition to the plans to add many more accessories to its portfolio. One new accessory the brand aims to add to its portfolio is motorbike helmets. This will be sold by the group from next month. “About 1 million two-wheelers are sold in Indiaevery month, and so we saw a good opportunity in a market where there is an acute shortage of good quality helmets and most of the market remains unorganised,” said Ronnie Talati, vice-president & business head, Fastrack & New Brands, Titan Industries Ltd. Another segment the brand wants to try its hand at is bicycles. The firm says there are not enough good quality bicycles being sold in India, and most of the good quality bicycles are imported and they are priced very high, ranging from Rs 15,000 to about Rs 2,00,000 or more. “Fastrack will sell bikes at much more affordable prices,” added Talati. (For details log on to : http://business-standard.com/india/news/titans-fastrack-plans-global-foray/467614/)
GODREJ APPLIANCES EYEING BIG FROM BOP SEGMENT
MUMBAI: Godrej Appliances, the consumer durables division of the Godrej Group, today said it will focus on the bottom of the pyramid segment, following the success of its lowest-cost refrigerator ‘Chotukool’. “The ‘Chotukool’ was an experiment to test the bottom of the pyramid market. We are in three states and within a year or so we will have a pan-India rollout. When we rollout nationally, we want to be ready with other products also,” Godrej Appliances Chief Operating Officer George Menzes told reporters here. Dubbed as the cheapest refrigerator in the country with a price tag of just Rs 3,500-3,800, ‘Chotukool’ is available in Maharashtra, Gujaratand Tamil Nadu at present. “The Chotukool is a low-cost cooling solution for the bottom of the pyramid (BoP) segment. The biggest learning for us in the ‘Chotukool’ model is the business channel. We have tied up with self-help groups like Pratham and some organisations which are into empowering women and making them entrepreneurs. We are leveraging such bodies to take the product to the rural customers through these self-help groups,” he said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/godrej-appliances-eyeing-big-from-bop-segment/articleshow/12247215.cms)
DUBAI PORTS WORLD TO EXPAND INDIA OPS, SEES POTENTIAL IN MINOR PORTS
MUMBAI: Global maritime terminal developer Dubai Ports World, which operates container terminals at major ports in India, is now eyeing minor ports in the country as part of its expansion strategy, as policy hurdles continue to haunt major port projects. The company, promoted by the government of UAE and which currently has an operational terminal at one minor port at Mundra in Gujarat, is scouting for operating terminals and allied business across minor ports in India. Currently, the company operates container terminals at JNPT and Chennai port. It also operates the country’s first transshipment hub in Cochin. “We see huge potential in minor ports category as they are expected to grow further at a time when some of the major ports are choked in terms of capacity,” said Anil Singh, managing director of DP World (subcontinent). Tariffs at minor ports are fixed by the state government since they come under the purview of the state government while the Tariff Authority for Major Ports (TAMP) decides the rates for the 13 major ports. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/transportation/shipping-/-transport/dubai-ports-world-to-expand-india-ops-sees-potential-in-minor-ports/articleshow/12255744.cms)
PRANAB MUKHERJEE-LED PANEL TO DECIDE ON 2G ISSUES
NEW DELHI: The telecom department will ask the Empowered Group of Ministers (EGoM), headed by Pranab Mukherjee, to take the final call on all issues related to upcoming auction of second generation (2G) bandwidth following the Supreme Court’s move to cancel 122 licences last month. It has prepared a nine-point agenda for the EGoM that is looking at all issues related to bandwidth allocation. The DoT wants the ministerial panel to decide on the quantum of airwaves to be auctioned, the reserve price for the bandwidth and the mode of auction, according to an internal DoT note reviewed by ET. It also wants the panel to finalise the annual spectrum charges and additional administrative charges, fee payable to the auctioneer, number of blocks of bandwidth to be sold and also if all incumbent and new players can be permitted to bid. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/telecom/pranab-mukherjee-led-panel-to-decide-on-2g-issues/articleshow/12255777.cms)
INFY HINTS AT DROPPING BENGAL PLAN
BANGALORE: With West Bengal chief minister Mamata Banerjee toughening her stand on not granting SEZ status to the proposed Infosys facility in the state, the IT major may have to think in terms of developing alternative centres like Bhubaneswar, the company’s executive co-chairman Kris Gopalakrishnan said. “I am not saying that we want to pull out. We have not reached any decision on it yet, but we will have no option, but to relocate our resources elsewhere if the project does not go through,” Kris told FE. “We have paid the entire amount for the land. Infosys has a history of completing any project to which we have committed. We want to go ahead in Bengal, but we need support,” Kris added. The West Bengalgovernment, however, had made its stance clear saying that the SEZ status would not be granted to the company by distorting the land policy of the state. (For details log on to : http://www.financialexpress.com/news/infy-hints-at-dropping-bengal-plan/923530/)
TOP DOMESTIC DRUG FIRMS TO SEEK CHANGE IN COMPULSORY LICENCE GRANT MODEL
NEW DELHI: A day after the patent controller issued the first compulsory licence in the country to Natco Pharma, top domestic drug firms are gearing up to seek a change in the mechanism through which a compulsory licence is granted in India. The Indian way of granting a compulsory licence is unique as the process gets activated only when a generic drug maker shows interest in manufacturing and marketing a patented drug and requests permission. Contrary to this, the governments of most other countries, such as Braziland Thailand, where the clause of compulsory licence has been invoked suo moto appraise the portfolio of patented drugs, identify the names of critical patented drugs and then invite generic drug makers to manufacture such drugs. Top domestic drug makers now plan to urge the health ministry to study these models and identify a set of patented drugs which remain either unaffordable or inaccessible to the general population in consultation with the department of industrial policy and promotion (DIPP). In the suggested framework, the health ministry could then release a list of such drugs in a notification for which compulsory licence clause should be invoked. “The interested generic drug makers in that case can apply to the patent office and the controller under Section 92 of the patent Act shall have to grant a licence. This would be different from Section 84 which was invoked in the ‘Nexavar’ case,” said Indian Pharma Alliance secretary general DG Shah. Procedure such as this demands initiative from the government’s side rather than the generic industry. (For details log on to : http://www.financialexpress.com)
HCC OFFERS ASSETS ON BLOCK TO ENTER CDR
MUMBAI: A consortium of 27 banks will soon decide on Hindustan Construction Company’s request to be allowed to restructure its loans, under the corporate debt restructuring (CDR) process. Ajit Gulabchand, chairman and managing director, has tried hard to convince the banks. In a meeting last week, he offered to liquidate the company’s land banks in the Vikhroli (Mumbai) and Pune areas. He also offered to sell five road projects over time and has even put two helicopters on the block. Reports suggested HCC could also be looking at selling its Mumbai headquarters premises, valued at almost Rs 1,000 crore. According to banking industry sources, Gulabchand’s proposal is likely to find favour, as banks are faced with a slew of bad loans. “HCC is servicing the loans at an average of 12.5-13 per cent. If the company goes into CDR, it may get rates of around 11 per cent,” said a banker, adding a stake sale in Lavasa, the controversial (and long-stalled) hill city project near Pune was also likely. (For details log on to : http://business-standard.com/india/news/hcc-offers-assetsblock-to-enter-cdr/467682/)
PHARMA STREET SPLITS NOT UNUSUAL
MUMBAI: Indian pharmaceutical companies, much sought partners for global majors due to the low cost factor, have seen quite a few deals fall apart in the recent past. Apart from the Pfizer-Biocon marketing alliance, some research & development (R&D) pacts also got terminated. According to experts, Indian companies’ inability to achieve certain milestones in a specified time frame could be why. This year, US drug maker Eli Lilly and Indian counterpart Jubilant Life Sciences had called off their partnership to develop molecules across oncology, diabetes and cardiovascular segments. After terminating the deal, Jubilant bought out Lilly’s stake in the 50-50 joint venture, Vanthys Pharmaceuticals. (For details log on to : http://business-standard.com/india/news/pharma-street-splits-not-unusual/467683/)
ENERGY FIRMS TO CASH IN ON LNG IMPORT NEEDS
MUMBAI: The absence of new gas finds and declining production from Reliance Industries’ flagship Krishna-Godavari-D6 field is making the business of gas import attractive. In the past year, Petronet LNG and Shell’s Hazira have talked of plans to expand capacity at their terminals. The Reliance Industries-BP combine and British Gas Indiahave decided to import natural gas. And, France’s GDF Suez, a euro 90-billion European energy major, has decided to cash on India’s growing need for natural gas. “GDF Suez considers Asia and especially India a core development region for its LNG (liquefied natural gas) business, with strong growth prospects and new supply potential,” said executive vice -president Jean Marie Dauger, after the French major signed a contract in November 2011 with Petronet LNG for 0.6 million tonnes (mt) of LNG by next year. The group has also bid for a 65.12 per cent stake in British Gas India’s subsidiary, Gujarat Gas. (For details log on to : http://business-standard.com/india/news/energy-firms-to-cash-inlng-import-needs/467696/)
ESSAR COMMISSIONS DIESEL HYDROTREATER UNIT AT VADINAR
MUMBAI/AHMEDABAD: Essar Group-owned Essar Oil Ltd has commissioned a diesel hydrotreater unit-I (DHDT-I) at its Vadinar refinery in Gujarat, a company statement informed on Tuesday. The unit would ensure that the diesel produced at the refinery will be capable of meeting Euro V specifications. The company informed that the phased commissioning of three additional units is slated for the end of this month, which complete the phase-I of expansion by March 2012. This would add nine new units thereby expanding the capacity to 18 million tonne per annum (MTPA) (375,000 barrels per day) and enhance complexity to 11.8 from 6.1 currently. “With this commissioning, Essar Oil’s capital expenditure programme is beginning to taper downwards and will see substantial pick up in revenue and profitability of the company going forward,” the company said in the statement. (For details log on to : http://business-standard.com/india/news/essar-commissions-diesel-hydrotreater-unit-at-vadinar/467597/)
PFIZER, BIOCON CALL OFF $350-M INSULIN DEAL
BANGALORE: Bio-pharma firm Biocon and multinational pharma major Pfizer on Tuesday called off a year-old $350-million global alliance to commercialise the Bangalore-based company’s insulin and insulin analog products, citing “independent priorities”. Kiran Mazumdar-Shaw, Biocon chairperson and managing director, told FE: “This has been under consideration for the past few months. Pfizer has been going through several changes, and their business priorities have also undergone changes. However, for Biocon, this is still top most priority. It, therefore, made sense for us to pursue this independently.” As part of the deal signed in October 2010, Pfizer had made an upfront payment of $100 million, which Biocon retains. It will also receive a ‘substantial’ part of another $100 million held in an escrow account plus an additional settlement amount, she said, without revealing details. (For details log on to : http://www.financialexpress.com/news/pfizer-biocon-call-off-350m-insulin-deal/923419/)
CENSUS FIGURES ON HOME FRONT RETELL INDIA STORY
NEW DELHI: The past decade was witness to India’s all-round growth story with increased housing, mobile, telephone and television penetration, a jump in vehicle ownership and increased electrification, according to the findings of Census 2011. According to the Houselisting and Housing Census data (also known as first phase of Census 2011) released on Tuesday, the 54% jump in urban housing in India has translated into an overall addition of 80 million census houses in 2011 which is 33% more than the 2001 data. This has led to the reduction in housing gap in Indiain the last 10 years. Also, with 67% households using electricity, the rural-urban gap in electricity usage has narrowed in the last 10 years. (For details log on to : http://www.financialexpress.com/news/census-figures-on-home-front-retell-india-story/923414/)
DOT TO PUT UP DEFENCE SPECTRUM FOR 2G AUCTION
NEW DELHI: The Department of Telecommunications (DoT) plans to include 110 MHz of spectrum be vacated by the defence forces in the auction of 2G spectrum. This will take the 2G spectrum to be auctioned to about 750 MHz. The proposal for vacation of spectrum was put forward by DoT in the last meeting of an empowered group of ministers (eGoM) headed by finance minister Pranab Mukherjee. A senior DoT official confirmed the development and said it would be easy if the available spectrum was made known to the auction participants, as directed by the Supreme Court. According to the agreement between DoT and the defence forces, about 150 MHz has to be released in the 1,700-2,000 MHz band, which would include spectrum in 2G and 3G bands. About 55 MHz of 2G spectrum each will be vacated in the 1710-1765 MHz and 1805-1860 MHz bands for use in telecom services. Following the differences between DoT and ministries, the matter of vacation of spectrum was referred to the eGoM. (For details log on to: http://business-standard.com/india/news/dot-to-putdefence-spectrum-for-2g-auction/467669/)
COAL INDIA MAY REVISE PRICES AFTER APRIL
NEW DELHI: Coal India Ltd (CIL), which meets over half of India’s energy requirements, could raise the commodity’s prices next quarter. The move is aimed at offsetting the financial impact of the 25 per cent wage rise announced for its mammoth workforce in January. The news saw the company’s shares on the Bombay Stock Exchange (BSE) rise 1.8 per cent to close at Rs 342.2 on Tuesday. Coal Indiais the world’s largest producer and accounts for 82 per cent of domestic coal supply. Any price hike by the state-owned miner creates a ripple effect in output prices across major consuming sectors, including power, steel, cement and fertilisers. “Coal Indiamay revise prices in the first quarter of next financial year (2012-13),” coal secretary Alok Perti said at the sidelines of sector event, without giving details. “It will first have an assessment on prices (which were rolled back earlier this year).” (For details log on to : http://business-standard.com/india/news/coal-india-may-revise-prices-after-april/467672/)
MAURITIUS WANTS MORE SOPS UNDER TAX TREATY
NEW DELHI: Just when India got some hopes of checking a round-tripping of funds into the country going by renegotiation of its tax treaty with Mauritius, the island-nation has thrown a googly by asking New Delhi to further ease provisions of the treaty to bring permanent establishments (PEs) under its purview. The latest round of talks between the two countries to revise their Double Taxation Avoidance Agreement (DTAA) saw New Delhi proposing changes in provisions regarding treatment of capital gains tax so that foreign investments routed to India through Mauritius could be brought to the tax net. However, Mauritiushas given no commitment to India; instead, it put forth its demand of giving more concessions to investors. “Mauritiuswants Indiato apply provisions of the DTAA to Permanent Establishments too,” a government official, who did not wish to be identified, told Business Standard. As per the current provisions of the DTAA, the Mauritian entity should not have a PE in Indiaif it wants exemption from capital gains tax. The treaty defines a PE as a fixed place of business such as a place of management, a branch, office or factory through which the business of the enterprise concerned is wholly or partly carried on. (For details log on to : http://business-standard.com/india/news/mauritius-wants-more-sops-under-tax-treaty/467662/)
AGRI REPORT CALLS FOR GROWTH ON A PAR WITH GDP
NEW DELHI: A report on ‘State of Indian Agriculture2011-12’, tabled in the Lok Sabha on Tuesday, has called for reforms to ensure that the sector grows in tandem with the overall GDP of the country. The report says that “achieving an 8-9% rate of growth in the overall GDP may not deliver much in terms of poverty reduction unless agricultural growth accelerates”. Admitting that the sector has undergone ‘significant structural changes’ in the form of a decrease in the share of GDP from 30% in 1990-91 to 14.5% in 2010-11, the report – tabled by agriculture minister Sharad Pawar – indicates a shift from the traditional agrarian economy towards a service-dominated one. “This decrease in agriculture’s contribution to GDP has not been accompanied by a matching reduction in the share of agriculture in employment. About 52% of the total workforce is still employed by the farm sector, which makes more than a half of the Indian population dependent on agriculture for sustenance (NSS 66th Round),” says the report. (For details log on to : http://www.financialexpress.com/news/agri-report-calls-for-growth-on-a-par-with-gdp/923431/)
I&B MINISTRY OPENS ACCOUNT ON FACEBOOK
NEW DELHI: Taking a cue from the public interest generated by the Facebook pages of the finance ministry, the Planning Commission, and the Reserve Bank of India, now the information and broadcasting (I&B) ministry too has launched a page on cable digitisation. I&B ministry’s Facebook account called digitalIndiaMIB will facilitate exchange of information, provide clarifications and invoke a wider canvass for public participation on the impending mandatory pan-India digitisation of cable industry starting with the metros. Digitisation of cable is a huge exercise jointly executed by the government and the cable industry which will transform the fundamentals of the R 30,000-crore Indian television industry. “The digital switchover of cable television necessitates adequate public awareness about the new system and the changes to be made at the level of stakeholders … so, we have a dedicated page, www.facebook.com/DigitalIndiaMIB, to inform and educate the viewers,” a senior official said. (For details log on to : http://www.financialexpress.com/news/i&b-ministry-opens-account-on-facebook/923537/)
CAIRN INDIA TO PAY LANDOWNERS MORE FOR PIPELINE PROJECT
NEW DELHI: Cairn Indiahas agreed to double the compensation to the farmers and landowners resisting construction of its pipeline project in Rajasthan and Gujarat. The proposed pipeline will connect its Rajasthan oilfield to the crude oil shipping facility at Bhogat in coastal Gujarat. The company now produces one fifth of India’s crude oil output. It has agreed for higher right of user payment — more than double the rate applicable in the Jamnagardistrict — after discussions with the local authorities and policymakers, said a source privy to the development. The last 70 km stretch of the 670 km pipeline that pumps the waxy crude oil from the Barmer oilfield to the single point mooring system in the coast is vital for Cairn’s realisation of global market price for oil as many Indian refiners are now upgrading their capacity to process such crude to improve their refining margins. Now Cairn sells its 1,40,000 barrels per day of crude mainly to Indian Oil Corporation, Essar Oil and Reliance Industries through the pipeline that reaches up to only Salaya, 600 km from the oil field. (For details log on to : http://www.financialexpress.com/news/cairn-india-to-pay-landowners-more-for-pipeline-project/923532/)
INDIA SHOWS 2% HIKE IN HOTEL ROOM PRICES: REPORT
MUMBAI: There was a marginal rise in hotel room prices in India, which went up by 2 per cent on an average in the second half of 2011 compared to the same period last year, while globally the rates rose by 4 per cent, according to a survey. “Hotel room prices in Indiahave shown only a marginal rise and Indian hotels continue to be attractive for both domestic and international travellers. The F1 race coming to Indiais an indication that the country has the potential to host iconic international events and will continue to be one of the preferred destinations for travellers,” said Hotels.com Senior Marketing Director, Asia Pacific, Abhiram Chowdhry. Its a good time also for Indian travellers to venture out to other international destinations such as Germany, South Africa, Canadaand Japangiven the significant fall in hotel room rates in these markets, he added. The latest Hotel Price Index (HPI) report by Hotels.com is a regular survey of hotel prices in major travel destinations across the world. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/hotels-/-restaurants/india-shows-2-hike-in-hotel-room-prices-report/articleshow/12251505.cms)
E-COURTS TO HEAR TAX CASES VIA WEBCAST
MUMBAI: The unending wait for justice due to the huge backlog of cases may continue. But if the Income Tax Appellate Tribunal (ITAT) has its way, there could be some relief, finally. The ITAT is mulling e-courts, or simply hearing of cases through webcast, to clear the backlog of cases in smaller towns. It has already given a proposal and plans to start a mock run by early April. Initially, there would be two benches in Mumbai and Delhithat would hear cases through webcasting, said an ITAT official. ITAT is a body under the law ministry where one can appeal against an order passed by the Income-Tax department. “E-courts could become a game-changer. Taxpayers will not have to wait for ITAT presiding officers to visit their town once in a blue moon. All they will have to do is file an appeal at the nearest centre and the hearing could be taken up by any bench in Mumbai and Delhi,” said K Shivram, a representative of the ITAT Bar Association, who has been working on the idea with representatives from the Instituteof Chartered Accountantsin India (ICAI). (For details log on to : http://business-standard.com/india/news/e-courts-to-hear-tax-cases-via-webcast/467692/)