NEW DELHI: Thomas Cook had received at least eight proposals from potential buyers, the travel company said on Wednesday, as it closed bids for the sale of its Indiabusiness. Several private equity and global investment firms, including Kohlberg Kravis Roberts (KKR), Carlyle Group, Everstone Capital, T A Associates, and Actis, are learnt to be in the race to acquire the 130-year-old company in the country. Apart from the PEs and investment firms, UK-based Travelex, which calls itself the “world’s foreign exchange specialist”, has put in a bid, according to an industry source close to the development. Also to have placed their expression of interest to buy Thomas Cook India, sources said, were leading gold financing NBFC Muthoot Finance, China’s HNA Group and Bravia Capital of Hong Kong. The buzz is that the current managers of Thomas Cook may have come up with a counter-bid as well. Thomas Cook India’s managing director Madhavan Menon categorically denied having any personal involvement in the bidding process or with the potential investors. He also ruled out the possibility of a counter bid by the management team of Thomas Cook India. (For details log on to : http://www.business-standard.com/india/news/travelex-pe-giants-race-for-thomas-cook-india/467812/)
LOCAL REGULATIONS KEEP FOREIGN PHARMA COMPANIES ON TENTERHOOKS
NEW DELHI: The grant of the country’s first compulsory drug licence and recent attempts at populist policy initiatives have raised fears of overseas pharmaceutical firms. The companies say that local regulations may stifle their business but domestic firms and health groups say the government’s moves strike a balance between industry’s growth and public’s healthcare needs. On Monday, the Indian government allowed Natco Pharma to manufacture and sell its low-cost version of a cancer drug at a fraction of the price charged by patent holder Germany’s Bayer AG, opening the doors for more such efforts by Indian firms. Last year, there was a strong move to restrict foreign direct investment through mergers and acquisitions, though finally it was shot down by the prime minister’s office. However, it has been made mandatory that all M&As undertaken by foreign drug firms be cleared by the Competition Commission of India (CCI). (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/local-regulations-keep-foreign-pharma-companies-on-tenterhooks/articleshow/12270844.cms)
IGATE OFFERS TO BUY BACK PATNI COMPUTER SHARES
BANGALORE: Today, the share prices of Patni Computer System surged on the Bombay Stock Exchange (BSE) after the promoters initiated the process to delist the company from Indian stock exchanges. The stock prices touched a 52-week high of Rs 513.10 per share on BSE before closing at Rs 507.80, an increase of 7.60 per cent over the previous day’s close. Market analysts say the rising price of shares might be a dampener in the delisting process as the company has fixed a floor price of Rs 356.74 to buy back the shares. In the process, the company might have to shell out more since it had earlier stated about its inability to offer more than Rs 450 a share, and even had set a cap of $215 million for this exercise. “It will definitely be difficult for them. If the current price is over Rs 500 per share, then the discovery price after the auction will certainly be higher than the current market price. So, what is going on is very difficult to say because on the face of it they were not ready to delist at Rs 420-440 level. At 500 plus level, it becomes all the way more difficult based on their debt scenario and their willingness to delist at those levels,” said Rohit Anand, an analyst of brokerage firm PINC Research. (For details log on to : http://www.business-standard.com/india/news/igate-offers-to-buy-back-patni-computer-shares/467826/)
SINGAPORE GOVT ARM PICKS STAKE IN VASAN HEALTHCARE FOR $100 MILLION
CHENNAI: The Government of Singapore Investment Corporation Pte Ltd, through its affiliates, has invested $100 million in Chennai-based Vasan Healthcare Pvt Ltd for a minority stake. The global investment management company joins Sequoia Capital and Westbridge Capital who are already investors in Vasan, which specialises in eye and dental care. Together, the three investors hold minority stake. Majority holding is with the promoters of the company. Vasan was set up in 2002 with an eye-care hospital in Tiruchioperating under the Vasan Eye Care brand name. Since then, Vasan has expanded its footprint across the country with 90 eye-care and 12 dental centres. It employs over 600 ophthalmologists and 140 dentists as part of its 6,000-plus workforce. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/article2996079.ece)
TATA POWER, SN POWER GROUP TO BUY STAKE IN SARDA ENERGY’S PROJECT
NEW DELHI: A consortium comprising Tata Power Co. Ltd and SN Power Norway is in talks to buy a significant stake in a 96 megawatts (MW) hydropower project in Sikkimfrom Sarda Energy and Minerals Ltd in a transaction valued at about Rs.200 crore, according to two people aware of the development. Deloitte Touche Tohmatsu India Pvt. Ltd has been appointed by Sarda Energy to advise it on the stake sale, said one of the two people cited above, requesting anonymity. The second person, who also declined to be named, confirmed that the consortium plans to acquire a significant stake in the Sikkimproject. The consortium, formed in in 2009, plans to “set up joint ventures for developing hydropower projects in Indiaand Nepal”, according to the information available on Tata Power’s website. It also states that “the partners aim to have 2,000MW under construction or in operation by 2015, and a total of 4,000MW by 2020.” Currently, the consortium is developing the 236MW Dugar hydroelectric project in Himachal Pradesh’s Chenab valley and the 880MW Tamakoshi-III project in Nepal, for which it has an exploratory licence. (For details log on to : http://www.livemint.com/2012/03/14214959/Tata-Power-SN-Power-group-to.html?atype=tp)
JAPAN‘S KOBE TO BUY STAKE IN MAN INDUSTRIES
Japan’s Kobe Steel will buy a small stake in steel pipemaker Man Industries and will jointly explore opportunities in the global steel pipe market, the Indian company said on Wednesday. As part of the agreement, Japan’s No.4 steelmaker will buy 3.25 percent stake in Man Industries to invest about $6 million at 165 rupees per share, a nearly 40 per cent premium to the current market price. The two companies will continue to explore long-term strategic partnership, Man said. Ahead of the announcement, shares of Man Industries, which have a market capitalisation of $122.6 million, ended up 7.8 per cent at 119.4 rupees in a Mumbai market that closed 0.6 percent higher. Lured by India’s growing status as a small-car hub, Japanese steel makers have been investing in their Indian peers. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/japans-kobe-to-buy-stake-in-man-industries/articleshow/12264136.cms)
PRIME FOCUS SIGNS AGREEMENT WITH LASERNET, SA
MUMBAI/PUNE: Prime Focus Technologies (PFT), a player in digital content said it has entered into a strategic alliance with South African ISP giant LaserNet. The agreement will see LaserNet bringing PFT’’s clear unified content operations platform and supporting services to its substantial media and entertainment sector client-base in the region. This alliance is expected to bring in a synergy between PFT’s technological innovation and content operations expertise, and LaserNet’s established client relationships and network infrastructure.This agreement will accelerate the already growing pace of digital transformation in the South African marketplace. It will also allow content owners in South Africato add new revenue streams, drive efficiencies, reduce cost and exploit content and will result in new growth opportunities for the media and entertainment industry in South Africa. (For details log on to : http://www.business-standard.com/india/news/prime-focus-signs-agreementlasernet-sa/467719/)
IBM TIES UP WITH INGERSOLL RAND
BANGALORE: IBM and Ingersoll Rand have come together to provide remote energy and asset management solutions for the Indian market. This move is aimed at driving energy efficiencies for organisations in the infrastructure segment (such as realtors and SEZs) or other sectors such as hospitality, health, pharma and telecom. According to this partnership, IBM will bring in the analytics and other solutions (to help trigger preventive and predictive maintenance) and Ingersoll Rand will provide the energy management solutions. This solution leverages IBM’s Intelligent Building Management system that is a combination of monitoring, asset management and advanced analytics along with Ingersoll Rand’s energy optimisation technologies. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-info-tech/article2996018.ece)
DISCOVERY TO LAUNCH KIDS CHANNEL
MUMBAI: Discovery Networks International to launch a new kids channel in Indiain April. This channel will be launched for the first time in Asia. It will be available in English, Hindi and Tamil languages. “Discovery Kids will offer children a fun and entertaining way to satisfy their natural curiosity with stimulating and imaginative programming,” said Mark Hollinger, president and chief executive officer, Discovery Networks International, on the sidelines of Ficci Frames. He added Indiais definitely poised for growth in this market. “Thirty per cent of the population in this country is below the age of 14. In light of the massive digitisation drive in India, we believe viewers will express their demand for such distinct television networks. I cannot think of any other country more poised for the launch of such a remarkable network,” he added. (For details log on to : http://www.business-standard.com/india/news/discovery-to-launch-kids-channel/467818/)
AMBUJA CEMENTS TO INVEST RS 1,800 CRORE FOR EXPANSION
MUMBAI: Ambuja Cements plans to invest Rs 1,800 crore by December 2013 to expand its production capacity. The company proposes to fund the project through internal accruals. It had surplus cash of Rs 7,700 crore as of December last year. The company will set up a 2.2-million-tonne clinkerisation unit at Nagaur in Rajasthan. The feasibility study for the project is completed and environmental clearance has been obtained, said Ambuja Cements in its annual report. To expand its footprint in the southern markets, the company proposes to set up a new bulk cement terminal at Mangalore. The terminal will be operational by September. A new brownfield expansion project to enhance capacity at its Sankrail grinding unit in West Bengalhas also been initiated, it said. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article2995976.ece)
NIKON INDIA TO SPEND RS 150 CRORE ON MARKETING NEXT FISCAL
NEW DELHI: Digital imaging firm Nikon Indiatoday said it will increase its marketing budget in 2012-13 to Rs 150 crore as it chases 30 per cent market share in the compact camera segment in the country by next fiscal. Nikon India, which is a 100 per cent subsidiary of Japan-headquartered Nikon Corporation, has 25 per cent market share in compact camera segment and earmarked Rs 120 crore on advertising and marketing campaigns for the ongoing fiscal. “In 2012-13, we expect the compact camera market to touch 40 lakh units in India. Of this, we are targeting a market share of 30 per cent,” Nikon India Managing Director Hiroshi Takashina told reporters. At present the company sell 18 models of compact camera in India. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/nikon-india-to-spend-rs-150-crore-on-marketing-next-fiscal/articleshow/12262070.cms)
BIOCON EYES $15-BILLION GLOBAL MARKET FOR INSULIN
BANGALORE: The $350-million deal with Pfizer to commercialise its insulin products is no more, but Bangalore-based Biocon is unfazed. The company is confident of finding new partners for US and Europethanks to the trust of the $15-billion insulin market, Kiran Mazumdar-Shaw, chairperson and managing director of Biocon, told FE in an interview. The company believes there will be no short-term impact from breaking up the deal, since it will retain the upfront payment of $100 million from Pfizer, besides getting some of the $100 million retained in an escrow account. Going forward, instead of going with one large partner, Biocon will look at several smaller ones, Mazumdar-Shaw said. (For details log on to : http://www.financialexpress.com/news/biocon-eyes-15billion-global-mkt-for-insulin/924013/)
ALLOW FII FUNDING IN MULTI-BRAND RETAIL
The Budget is coming at a time when the GDP growth rate has dropped to one of the lowest in the last few quarters. However, the prognosis for long-term growth of the Indian economy remains largely positive. Much of this growth will be led by private consumption expenditure. Indiais at an advantage with few secular trends which have emerged in the last decade. Growing disposable income, high urbanisation and nuclear families with working women have changed the attitude and heightened the aspirations of Indian middle-class consumers. This, along with the increase in the share of middle-class in the population, will be the key drivers of consumption growth in this country. But the condition to tap this consumption growth remains that Indian retailers will need to create large infrastructure and suitable formats to cater to the rising aspiration of the consumers. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article2995996.ece)
IDG, INDOUS VENTURE TO INVEST $10 MILLION IN ZIVAME
BANGALORE: Zivame, an online lingerie retailer, has persuaded two funds to invest up to $10 million ( 50 crore) in a venture that seeks to profit from Indian women’s growing penchant for branded innerwear. IDG Ventures and IndoUS Venture Partners have already invested $5 million in Zivame, which is counting on women in small towns and rural Indiato drive demand for brands such as Amante, Jockey, Triumph, Enamor and Hollywood Fashion Secrets. IDG expects to invest another $5 million in the next couple of months said a person with direct knowledge of the deal. For IDG Ventures, the investment in Zivame is its fifth investment in a single-product online retailer. TC Meenakshisundaram, the managing director of IDG Ventures India Advisors, said affordable access to internet is driving the digital behaviour of consumers and increasing the attractiveness of online commerce firms. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/idg-indous-venture-to-invest-10-million-in-zivame/articleshow/12270960.cms)
MEDIA, ENTERTAINMENT GROWTH PREDICTED AT 13%
MUMBAI: The Indian media and entertainment (M&E) industry grew 12 per cent in 2011 to Rs 72,800 crore, says a report by KPMG, the global consultancy, and the Federation of Indian Chambers of Commerce and Industry. This was backed by the strong consumption in Tier-2 and Tier-3 cities, continued growth of regional media and fast-increasing new media business. The industry is estimated to achieve a growth rate of 13 per cent in 2012. The report suggests the rate of expansion will accelerate till 2016, by which time the business will be worth Rs 1,45,700 crore. That translates into a compounded average growth rate (CAGR) of 15 per cent over the five years. “The industry landscape is undergoing a significant shift. Cable digitisation, the promise of wireless broadband, increasing DTH (direct-to-home television) penetration, digitisation of film distribution and growing internet use are all prompting strategic shifts in the way companies work. Traditional business models are evolving for the better, as a host of new opportunities emerge,” said Jehil Thakkar, head of M&E at KPMG. (For details log on to : http://www.business-standard.com/india/news/media-entertainment-growth-predicted-at-13/467817/)
SOON, A SINGLE-WINDOW CLEARANCE FOR FOREIGN FILMS TO SHOOT IN INDIA
MUMBAI: The ministry of information and broadcasting is planning to create a film commission, which will allow foreign studios a single window clearance to shoot films in India. “So far, film-makers had to obtain multiple shooting permits for every location they use, something which deterred them from travelling around and spreading their economic benefits. Now there will be platform to provide single clearance, which cut through the bureaucracy,” said Uday Varma, secretary at the ministry of information and broadcasting during Ficci Frames. Last month, the ministry signed an agreement with ministry of tourism to provide support for film tourism. In the past few years, there has been sharp rise in international film-makers shooting films here in order to reach out to a rapidly-growing audience in an emerging economy. The number of requests from foreign crews for shooting films here shot up from 10 in 2009-10 to 28 in 2010-11. (For details log on to : http://www.business-standard.com/india/news/soonsingle-window-clearance-for-foreign-films-to-shoot-in-india/467811/)
INDUS TOWERS LOOKS AT LOWER CAPEX
MUMBAI: IndusTowerswill now spend less, as the telecom tower infrastructure company is shifting focus from building more towers to adding more clients to existing towers. IndusTowerschief executive officer B S Shantharaju said on Wednesday that the company’s capital expenditure would be at least 40 per cent lower this year, than it was in the last two years. This would be completely funded by internal accruals. “We will be adding more towers, but not like we did three years ago,” he said. “The game is not about increasing the number of towers; the game now is to get more tenants on existing towers.” The company, he added, is not interested in acquiring towers to enhance its portfolio. IndusTowersis a joint venture between the country’s top three telecom operators — Bharti Airtel, Vodafone Indiaand Idea Cellular. Ever since telecom tower infrastructure sharing was permitted, the company expanded fast — and now has 110,000 towers across 16 circles. (For details log on to : http://www.business-standard.com/india/news/indus-towers-looks-at-lower-capex/467827/)
EMINENT ECONOMISTS SAY IIP NUMBERS IN HAZY ZONE
NEW DELHI: Indians suddenly developed a taste for zarda (tobacco-filled betel nut) this January, if the industrial production numbers are taken at face value. The Index of Industrial Production (IIP) for the month showed zarda output grew 127.3 over January 2011. It’s a similar story with newspapers and pens — the IIP showed the former up 57.1 per cent, year-on-year and pens up 31.8 per cent in January. Also, we used marble tiles far more than earlier. Their production was shown to increase by 69.4 per cent. With all these items, there was also a 92 per cent jump in processed food production; it together led to a 42 per cent rise in consumer non-durables. This, in turn, pushed up overall industrial production to a seven-month high of 6.8 per cent in January. (For details log on to : http://www.business-standard.com/india/news/eminent-economists-say-iip-numbers-in-hazy-zone/467797/)
NEW MARKETS HOLD EXPORT PROMISE
NEW DELHI: Since 2004-05, India’s merchandise exports have been witnessing a considerable shift from the developed West to the developing East, South-east, Latin American and African countries. While the developed markets account for bulk of India’s exports, incremental growth will come from the new markets, according to experts. However, it’ll take the new markets almost a decade to achieve the quantum and scale of the developed markets. Exports from India have diversified to a large extent since 2005 when the country started reaching out to other countries through bilateral trade deals and other trading arrangements, rather than focusing on the US and European markets. (For details log on to : http://www.business-standard.com/india/news/new-markets-hold-export-promise/467807/)
TRIVEDI BITES THE BULLET TO BRING RLYS ON TRACK
The railways’ passenger earnings are set to rise a whopping 25.2 per cent, owing to fare increases announced in the Railway Budget on Wednesday. Of the projected increase of Rs 7,273 crore in the next financial year, about 85 per cent would be met through the rise in passenger fares, while the remaining would be accounted for through the rise in passenger numbers, expected to be about 5.4 per cent. In his first railway budget, minister Dinesh Trivedi on Wednesday estimated total passenger earnings at Rs 36,073 crore for 2012-13, compared with a revised estimate of Rs 28,800 crore for 2011-12. In Parliament on Wednesday, Trivedi said, “I propose to rationalise the fares to cause a minimal impact on the common man. I am only asking for an extra two paise per km for sub-urban and ordinary second class. Similarly, the increase for mail express second class will be of only three paise per km; for sleeper class, only five paise per km; for AC chair car, AC 3-tier & first class, only 10 paise per km; AC 2-tier only 15 paise per km; and AC-I only 30 paise per km.” (For details log on to : http://www.business-standard.com/india/news/trivedi-bitesbullet-to-bring-rlystrack/467772/)
LAST-MILE CONNECTIVITY PROJECTS CHEER PLAYERS
The railway budget push to improve last-mile connectivity has come as a major relief for user industries in the sectors of coal, power, steel and shipping. The new rail link projects, when commissioned, would go a long way in reducing the time and cost overruns associated with transporting output, especially in the mining sector, which depends upon rail infrastructure for evacuation, the industry says. A Coal India official said the minister’s announcement to take up 50 new projects for providing last-mile connectivity in 2012-13 has come as a major relief. “The new projects would relieve the evacuation of at least 30 million tonnes of coal that are likely to be stocked in the central Indian coalfields alone,” he told Business Standard. The rail ministry has approached the ministries of coal, power, steel and shipping for identification of rail connectivity projects, rail minister Dinesh Trivedi on Wednesday said while presenting the budget. Also, 17 such projects have already been sanctioned and another 28 identified, he added. “Railways will interact with concerned utility stakeholders to take the process of connectivity forward, largely through the PPP (public-private partnership) route,” Trivedi said. In another major announcement for the user industries, the government is planning to set up a Logistics Corporation to provide last-mile servicing for freight traffic and management of existing railway goods sheds and muiltimodal logistics park. (For details log on to : http://www.business-standard.com/india/news/last-mile-connectivity-projects-cheer-players/467778/)
COAL INDIA MAY DIVERT COAL UNDER E-AUCTION TO POWER FIRMS
NEW DELHI: To meet fuel supply commitments to the power sector, the government today said CIL might divert a portion of the coal meant for e-auction to power plants. “… Coal India Ltd (CIL) may reduce coal meant for e- auction from 10 to 7 per cent of its production progressively till the end of the 12th Plan,” Minister of State for coal Pratik Prakashbapu Patil said in a written reply to Lok Sabha. The decision, Patil said, was taken following a meeting held in Prime Minister’s Office to discuss the issues relating to coal shortage and finding out ways to meet the requirement of the fossil fuel of the power sector. Last month, Coal Minister Sriprakash Jaiswal had also said that it may divert a portion of the fuel under e-auction quota to power producers, besides resorting to imports to meet the crisis of the dry fuel. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/coal-india-may-divert-coal-under-e-auction-to-power-firms/articleshow/12262771.cms)
CHINA, INDIA 2030 COAL IMPORTS MAY HIT 1.4 BILLION TONNES
NEW DELHI: China’s thermal coal imports could soar to one billion tonnes in 2030 from just 175 million in 2011 , while India’s imports will be at least 400 million tonnes in that same year, five times last year’s levels, research consultants Wood Mackenzie said. Imports will rise as surging growth boosts demand for electricity in two of Asia’s largest economies, which rely heavily on coal for power generation, Wood Mackenzie’s coal market analyst Prakash Sharma told Reuters. India’s imports could “substantially” increase, “probably by next year,” if the biggest supplier, Coal India, raises domestic prices closer to global levels soon, he said. “If domestic coal prices rise and become at import parity for Indian consumers then probably coastal-based power plants and distant power plants … will prefer imported coal over domestic coal,” Sharma said on the sidelines of the Coaltrans conference in New Delhi. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/china-india-2030-coal-imports-may-hit-1-4-bn-tonnes/articleshow/12259933.cms)
THE FIVE FUNDAMENTAL DIFFERENCES BETWEEN INDIA’S TOP TWO CORPORATE LAW FIRMS AMARCHAND & MANGALDAS AND AZB PARTNERS
Some years ago Cyril Shroff and Bahram Vakil, opposing parts of India’s top two corporate-law firms, were facing each other in a conference room in Zurich. When the clients’ discussions stretched, the two lawyers exchanged text messages about hunger pangs and wanderlust. Next thing, they say, they told their respective clients that their time was up and they had a conference call. They met outside and indulged in hot fondue for lunch. There’s mutual respect and camaraderie between the managing partners of Amarchand & Mangaldas and AZB Partners, respectively. But beyond that, in the way the two storied corporate-law firms have gone about building and operating their respective businesses, they are studies in contrast. Here are five such differences that define each firm in their own way. (For details log on to : http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/the-five-fundamental-differences-between-indias-top-two-corporate-law-firms-amarchand-mangaldas-and-azb-partners/articleshow/12271395.cms)