ASBM Business
Updates is a Weekly Selective Compilation of Business News from Various
Sources. To find details follow the links.
Sabita Sahu :Junior Librarian and Syamaghana Mohanty : Chief Librarian, Knowledge and Information Services Unit, Chanakya Central Library, Asian School of Business Management, Bhubaneswar. chieflibrarian@asbm.ac.in ; www.asbm.ac.in
ASIAN BUSINESS
Asian shares rose to their highest since August 2011
on Wednesday after an improving global economic outlook boosted world equities
overnight, encouraging investors to take on risk.
The MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7%, rose for a third day in a row, led by a 1.7% gain in its technology sector. The index has risen 4% so far this year.
Asian shares have been on an uptrend as risks from the euro zone debt crisis the US fiscal crisis abated and signs of tepid recovery emerged in major economies including China. Corporate earnings have also been generally positive.
"A shift to cyclicals from defensives has come to a full circle and investors are now looking at sector-specific factors within an asset class, selecting those with a tight supply/demand outlook," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory.
News of possible fresh mergers boosted US stocks on Tuesday, pinning the benchmark Standard & Poor's 500 Index near a five-year high, while a stronger-than-expected rise in the German ZEW investor sentiment index to a three-year high supported European stocks.
The MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7%, rose for a third day in a row, led by a 1.7% gain in its technology sector. The index has risen 4% so far this year.
Asian shares have been on an uptrend as risks from the euro zone debt crisis the US fiscal crisis abated and signs of tepid recovery emerged in major economies including China. Corporate earnings have also been generally positive.
"A shift to cyclicals from defensives has come to a full circle and investors are now looking at sector-specific factors within an asset class, selecting those with a tight supply/demand outlook," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory.
News of possible fresh mergers boosted US stocks on Tuesday, pinning the benchmark Standard & Poor's 500 Index near a five-year high, while a stronger-than-expected rise in the German ZEW investor sentiment index to a three-year high supported European stocks.
The most widespread margin squeeze in at least a
decade is pushing some Singapore companies out of the city state as rising
costs and slow growth sap profitability.
A Reuters study of 268 listed Singapore companies
showed that 57 percent reported a year-on-year drop in operating profit margin
for the first three quarters of 2012. That was the biggest percentage for the
nine-month period on record, according to Thomson Reuters data going back to
2002. Full-year data for 2012 was not yet available.
A severe labor shortage is hobbling businesses in
Singapore as the government tightens its immigration policies, while growth has
been hard to come by as exports languish in a dull global economy.
Across Southeast Asia, 54 percent of companies
reported shrinking margins, equaling the percentage recorded in 2009, when the
global economy had tipped into a recession following the Lehman Brothers
bankruptcy.
In all, Reuters examined the balance sheets of
nearly 1,000 companies in Singapore, Malaysia, Indonesia, Thailand and the
Philippines with a market value of at least S$100 million ($80.8 million).
The pain is particularly acute in Singapore, a
smaller and more mature market lacking the burgeoning consumer classes of its
emerging market neighbors. Inflation has heated up, with the consumer price
index, due on Monday, expected to show a 4.0 percent rise in January, according
to a Reuters poll.
BANKING
Shriram Group
has said that it will seek a banking licence
for a new group entity which will focus small-ticket
loans and will have a low-cost model.
Speaking to TOI, Arun Duggal, chairman, Shriram Capital said that "We would prefer to apply for a new banking licence with a model for lending to low income families."
Chennai-based Shriram Group, promoted by R Thyagarajan, has its roots in the chit funds business but today is a financial conglomerate with Shriram Transport Finance as group flagship. The group also owns Shriram Life and Shriram General Insurance Companies and Shriram City Union — a consumer finance business. The group is one of the contenders for a banking licence under the new guidelines issued by Reserve Bank of India on Friday. According to Duggal, the cost structure of existing banks is too high to effecitively service low-income groups and small borrowers. "Even now our focus is on retail our intention is to use technology for servicing loans to low-income families," he said. Duggal does not see the Rs 500-crore paid-up capital requirement as a deterrent.
Speaking to TOI, Arun Duggal, chairman, Shriram Capital said that "We would prefer to apply for a new banking licence with a model for lending to low income families."
Chennai-based Shriram Group, promoted by R Thyagarajan, has its roots in the chit funds business but today is a financial conglomerate with Shriram Transport Finance as group flagship. The group also owns Shriram Life and Shriram General Insurance Companies and Shriram City Union — a consumer finance business. The group is one of the contenders for a banking licence under the new guidelines issued by Reserve Bank of India on Friday. According to Duggal, the cost structure of existing banks is too high to effecitively service low-income groups and small borrowers. "Even now our focus is on retail our intention is to use technology for servicing loans to low-income families," he said. Duggal does not see the Rs 500-crore paid-up capital requirement as a deterrent.
Punjab National Bank (PNB), the second largest
public sector bank of the country, has welcomed the Reserve Bank of India (RBI)
guidelines for the new bank licences issued on Friday.
Calling the move of the apex bank a win-win situation for all, PNB Executive Director SR Bansal said, with the new set of guidelines for the banking operation licence will lead to more competitions resulting in better services for the customers.
Asked on the new set of rules paving the way for real estate players and brokerage firms to apply for banking license, Bansal, who is in the race for the post of Chairman cum Managing Director of PNB, said, the decision must have been taken after due discussions.
RBI has set the last date of applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerage firms.
The minimum capital required by applicants for licence is Rs 500 crore, and foreign shareholding in the new banks will be capped at 49 per cent for the first five years. The new banks should be set up under a non-operative financial holding company (NOFHC), the RBI said.
The new guidelines were issued by the apex bank nine years after it issued the last round of licences. RBI had issued licences to 10 private players in 1993-94 followed by two more banks in 2003-2004- namely Kotak Mahindra Bank and Yes Bank. Bansal inaugurated 116th branch of PNB in Odisha at Kantapada and 5th PNB Pragati branch in Bhubaneswar on Friday during his visit here. He said, about 21 more branches will be opened in Odisha Circle and 7 more branches to be upgraded as PNB Pragati branch before the end of this fiscal.
Calling the move of the apex bank a win-win situation for all, PNB Executive Director SR Bansal said, with the new set of guidelines for the banking operation licence will lead to more competitions resulting in better services for the customers.
Asked on the new set of rules paving the way for real estate players and brokerage firms to apply for banking license, Bansal, who is in the race for the post of Chairman cum Managing Director of PNB, said, the decision must have been taken after due discussions.
RBI has set the last date of applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerage firms.
The minimum capital required by applicants for licence is Rs 500 crore, and foreign shareholding in the new banks will be capped at 49 per cent for the first five years. The new banks should be set up under a non-operative financial holding company (NOFHC), the RBI said.
The new guidelines were issued by the apex bank nine years after it issued the last round of licences. RBI had issued licences to 10 private players in 1993-94 followed by two more banks in 2003-2004- namely Kotak Mahindra Bank and Yes Bank. Bansal inaugurated 116th branch of PNB in Odisha at Kantapada and 5th PNB Pragati branch in Bhubaneswar on Friday during his visit here. He said, about 21 more branches will be opened in Odisha Circle and 7 more branches to be upgraded as PNB Pragati branch before the end of this fiscal.
BUSINESS
The Budget for 2013-14 is probably all sewn up and
the documents are being printed right now. Yet, that has not prevented various
interest groups from lobbying with the Finance Minister for their respective
proposals even at this late stage. Commodities exchange traders and their
brethren from the stock markets have locked horns on whether a Commodities
Transaction Tax (CTT), on the lines of the Securities Transaction Tax (STT), is
desirable or not.
Stock market operators, brokers and officials want
the STT withdrawn as they feel it is an unfair levy. They also point out that
there is no transaction tax on commodities trading and therefore, the playing
field is not level between them. Either withdraw the STT or impose a
transaction tax on commodities as well, they say.
The commodities market players and exchanges are
seeing red at this suggestion that they be slapped with the CTT. They managed
to have the CTT, which was first imposed on them in 2008, withdrawn within a
year and without it being implemented. Their arguments against the tax now are
familiar. Those playing the stock market have the benefit of setting off their
losses from derivatives transactions against their business income under
Section 43 (5) of the Income Tax Act. This is because profit/loss from
derivatives trading is treated as business income.
However, commodities traders don’t enjoy this
benefit. Income from commodities trading is treated as speculative income and
taxed under a different section of the Income Tax Act where the tax is higher.
Besides, commodities players point out that after imposition of the STT, long-term
capital gains tax has been brought down to zero. So, how can stock market
players claim that the playing field is not level, is their refrain.
Titan Eye
Plus, a flagship wing of Titan Industries Ltd, is planning to develop and
produce specially coated lenses to avert scratches and cracks, according to a
top company official.
The new
lenses will be three to four times better than those in the global market, the
official claimed.
"The
company is working out a collaborative pack with a leading Japanes firm to
develop technology and production process in India for...variety of lenses
which will be three or four times (highest scratch resistance) better than
types of lenses available now across the world," S Ravi Kant, CEO, Eyewear
Business of Titan Industries Ltd, said.
With
available technologies and production capability in the Hosur factory near
Bangalore, the company could also embark on producing glasses/goggles for
welders and industrial applications. Both these products could be rolled out by
mid 2014, he said.
The 218
stores across India would be enhanced to about 240 before this fiscal end, Kant
said.
Presently,
the company has presence in 78 cities and towns. Eighty of the 218 are owned by
the company and the remaining are under the franchisee mode.
Ravi Kant
said the eyewear segment established in March 2007 has garnered a customer base
of approximately two million which would touch 2.25 million before year end.
The new locations
across the country would include Thanjavur, Vellore, additional outlets in
Mumbai, Chennai and Bhopal. Plans are also on to install Titan Eye+ stores in
Ludhiana, Mesama, Berambur, Udhaipurm, Vadodra, Jorhat, he said.
BUSINESS
COMMUNICATION
Hitachi Communication Technologies America, Inc.
(Hitachi CTA) today announced that its MME/SGSN/Small Cell Gateway software
product is now running on virtualization technology. Hitachi, together with
Juniper Networks, has implemented its software on Juniper’s JunosV App Engine
virtualization platform. The joint solution is available from Juniper as the
virtual Mobile Control Gateway (MCG). Mobile service providers are facing tough
choices as they expand their networks to keep pace with the ever-growing
demands of their subscribers. In deploying a virtual mobile network, service
providers achieve elastic capacity to meet the ever-changing demands of control
signaling and throughput. The virtual MCG provides mobile operators with an
innovative and unique approach to dramatically reduce their CAPEX/OPEX
challenges, while opening up the potential to deliver new revenue generating
services at greater velocity. The virtual MCG is available as part of Juniper’s
MobileNext portfolio offering, and is the first step towards a virtualized
Mobile Packet Core.
“Hitachi CTA leverages Juniper Networks’ new JunosV
App Engine, a virtualized environment capable of running multiple applications
with the deployment simplicity of a single device. The virtual MCG solution
provides enhanced carrier-grade reliability, building increased robustness into
service provider networks. Working with Juniper Networks, Hitachi is
demonstrating the virtual MCG in the JunosV App Engine virtual machine
environment at Mobile World Congress,” said Reg Wilcox, EVP Business
Development of Hitachi CTA.
FINANCE
The line-up of mini-SUVs is
likely to get stronger. Battling mounting losses and declining sales, Tata Motors is considering to upgrade existing vehicles
while looking at new launches that could include an all new sub four-metre SUV
to take on models like Mahindra Quanto and soon-to-belaunched Ford Eco Sport.
Tata Motors, which saw net profit crash by 52% in the third quarter of this fiscal, is looking at a variety of new vehicles in the utility vehicle and SUV space to cash in on the rising popularity of such models. "We definitely have lost a bit of ground but we will get back with new products. There are lots of projects in the pipeline and we want to be a significant player in the UV segment," said Ashesh Dhar, head, UV product group, at Tata Motors.
Dhar, who has been with the company for around one year after joining from rival Mahindra & Mahindra, said Tata Motors is looking to work out new strategies to boost the UV business. "We are quite aggressive in UVs, and are looking at building on it further." Sales of Tata Motors' UV portfolio of Sumo, Safari, Aria and Venture range fell by 3% in the April-January 2012-13 period at 41,166 units against 42,354 units in the same period last fiscal, according to numbers at the company's website.
Asked whether the new vehicles could include a new sub four-metre entry SUV, something on the lines of the Mahindra Quanto, Dhar told TOI, "Wherever there is growth, we will not neglect that... We are looking at many, many SUVs. We see the industry growing very strongly across categories."
Tata Motors was perhaps the first auto company in India to drive in a sub-four metre version of an existing bigger vehicle when it truncated the Indigo sedan for a shorter variant. A sub-four metre vehicle gets a near 50% reduction in excise duty, helping companies price them aggressively .
Tata Motors, which saw net profit crash by 52% in the third quarter of this fiscal, is looking at a variety of new vehicles in the utility vehicle and SUV space to cash in on the rising popularity of such models. "We definitely have lost a bit of ground but we will get back with new products. There are lots of projects in the pipeline and we want to be a significant player in the UV segment," said Ashesh Dhar, head, UV product group, at Tata Motors.
Dhar, who has been with the company for around one year after joining from rival Mahindra & Mahindra, said Tata Motors is looking to work out new strategies to boost the UV business. "We are quite aggressive in UVs, and are looking at building on it further." Sales of Tata Motors' UV portfolio of Sumo, Safari, Aria and Venture range fell by 3% in the April-January 2012-13 period at 41,166 units against 42,354 units in the same period last fiscal, according to numbers at the company's website.
Asked whether the new vehicles could include a new sub four-metre entry SUV, something on the lines of the Mahindra Quanto, Dhar told TOI, "Wherever there is growth, we will not neglect that... We are looking at many, many SUVs. We see the industry growing very strongly across categories."
Tata Motors was perhaps the first auto company in India to drive in a sub-four metre version of an existing bigger vehicle when it truncated the Indigo sedan for a shorter variant. A sub-four metre vehicle gets a near 50% reduction in excise duty, helping companies price them aggressively .
Shares of Jet
Airways today tanked more than 3 per cent amid investor concerns whether
its stake-sale deal with Abu-Dhabi based carrier Etihad would materialise.
According to media reports, fresh hurdles have come
up in the Jet-Etihad deal. There were also reports that the UAE-based carrier
was seeking to revise a proposed deal with the Indian carrier. Jet shares
opened weaker and lost further ground to touch a low of Rs 511.55 on the BSE, down 2.99 per
cent from its last closing price.
On the National Stock Exchange as well, the stock
opened at Rs 522 and touched intra-day low of Rs 510.25, down 3.38 per cent
from its previous closing price.
Etihad has said the deal is being revised and might
take some time to conclude. It is reported to be buying 24 per cent equity in
Jet Airways for about Rs 1,800 crore.
INDIA BUSINESS
General
Electric Co. GE -0.13%
expects its revenue in India to grow by 15% to 20% each year despite the
current economic slowdown, Chief Executive Jeff Immelt said Friday.
He added that GE will continue to invest in India
because the company--which began operations here in 1902 by installing a hydropower
plant--is in the country for the long-haul.
"We continue to be optimistic about our
technology and products--whether it is the power sector or healthcare, oil and
gas, aviation transportation. They continue to be the focus here," Mr.
Immelt said at a meeting of editors in New Delhi.
"We continue to be encouraged by our underlying
business performance here in India."
He didn't provide any details of GE's revenue in
India, or what he expects to drive the 15%-20% revenue rise. But he said that
he expects growth in all of GE's India businesses, including healthcare and
aviation.
Mr. Immelt, however, expressed concern about a
shortfall of gas supply to India's power plants.
"I always think infrastructure is a precursor
to more sustainable development. The fact that the country still has a 15-20
gigawatt deficit of power remains a big hindrance to growth," he said.
India is faced with a crippling shortage of power to
run its factories and light its homes. Several cities in the country have daily
blackouts of up to six hours.
The country faced its worst-ever power outage last
July when more than 600 million people went without power for over two days and
caused millions of dollars in economic losses.
India, Asia's third-biggest economy, is suffering a
major slowdown, hurt by high inflation and wide fiscal and current account
deficits.
The economy expanded 6.2% in the fiscal year ended
March 31, 2012--its slowest pace in a decade.
Fresh order flows of domestic companies, a key
indicator of investment activity and business sentiment, have been pointing to
a deepening slowdown in the Indian economy.
With uncertainty over economic prospects and higher interest rates leading to subdued investments by the private sector, Indian companies’ new order inflows in the quarter ended December 31 stood at the lowest level in nearly four years.
During the quarter, new orders for companies in the sectors like infrastructure and construction were to the tune of Rs 37,371 crore, the lowest since June 2009. These were 32 per cent lower than the order inflows in the previous quarter and 20 per cent lower than those in the same quarter a year ago.
According to industry officials and analysts, very few new projects are being announced and existing ones are getting stalled, as companies are conserving cash due to an uncertain outlook.
“The number of stalled and cancelled projects has increased,” says Elecon Engineering Company CMD Prayasvin Patel.
The slowdown in order flows is not confined to the power sector; it is spreading to road projects and equipment suppliers. The current quarter has not seen any business recovery yet, with firms securing new orders worth just Rs 15,783 crore so far.
“In the investment-related sectors like construction, industrials and infrastructure, there is hardly any recovery and things are probably getting worse,” says Kotak Institutional Equities Executive Director & Co-head Sanjeev Prasad.
Shares of companies in the sectors benefitting from fresh investments into the economy have performed worse than the broader markets this year. The BSE Capital Goods index has dropped 11 per cent so far this year, against a decline of one per cent in the benchmark Sensex.
Analysts say, barring a few, most firms in the roads, capital goods and engineering sectors are witnessing a sharp drop in order flows.
With uncertainty over economic prospects and higher interest rates leading to subdued investments by the private sector, Indian companies’ new order inflows in the quarter ended December 31 stood at the lowest level in nearly four years.
During the quarter, new orders for companies in the sectors like infrastructure and construction were to the tune of Rs 37,371 crore, the lowest since June 2009. These were 32 per cent lower than the order inflows in the previous quarter and 20 per cent lower than those in the same quarter a year ago.
According to industry officials and analysts, very few new projects are being announced and existing ones are getting stalled, as companies are conserving cash due to an uncertain outlook.
“The number of stalled and cancelled projects has increased,” says Elecon Engineering Company CMD Prayasvin Patel.
The slowdown in order flows is not confined to the power sector; it is spreading to road projects and equipment suppliers. The current quarter has not seen any business recovery yet, with firms securing new orders worth just Rs 15,783 crore so far.
“In the investment-related sectors like construction, industrials and infrastructure, there is hardly any recovery and things are probably getting worse,” says Kotak Institutional Equities Executive Director & Co-head Sanjeev Prasad.
Shares of companies in the sectors benefitting from fresh investments into the economy have performed worse than the broader markets this year. The BSE Capital Goods index has dropped 11 per cent so far this year, against a decline of one per cent in the benchmark Sensex.
Analysts say, barring a few, most firms in the roads, capital goods and engineering sectors are witnessing a sharp drop in order flows.
INTERNATIONAL
BUSINESS
The much-anticipated LG Nexus 4 smartphone was
spotted online at Saholic.com, giving hint that the smartphone in nearing its
release in India. LG
Nexus 4 is listed as 'coming soon' on the website which stated, "LG E960 Nexus 4 16GB will
be available by 28/02/13", indicating the possibility of its launch in the
coming days. Saholic mentioned that the delivery time of the smartphone is
"5 Business Days after arrival". The smartphone is not seen on India's
Google Store.
Consumers in India had been anticipating the launch
of the Android-powered
device since its global debut in October. Earlier in January, there were
reports that the launch of LG Nexus 4 in India was delayed further due to a
spat between Google and LG, the developers of the smartphone. The
manufacturers were said to be arguing over the its pricing for India. Regarding
its specifications, LG Nexus 4 will arrive with the latest version of the Android
Jelly Bean Operating System, 1.5GHz Qualcomm Snapdragon S4 Pro processor,
4.7-inch WXGA display with IPS technology and 1280x768 pixel resolution, and
2GB RAM.
It packs additional features like Wi-Fi 802.11
a/b/g/n, Bluetooth, NFC (Android Beam), SlimPort HDMI, 8.0-megapixel rear
camera along with 1.3-megapixel front-facing camera. Other features include
Google Maps, A-GPS, Java, Google Voice Search, Gesture Typing and music player.
The phone is priced $299(8GB) and $349(16GB) in the
US and was a hit in the global market.
The phone is available in 8GB and 16 GB internal
storage options. The 16 GB model was spotted on Saholic.com. There is no word
about its pricing for the Indian market.
Iconix Brand Group Inc, which licenses shoe and
clothing brands to retailers and manufacturers, said it has acquired British
denim label Lee Cooper to boost its international presence.
The company, owner of brands such as Ed Hardy, Rocawear and Candie's, said it paid $72 million in cash for the brand. The company has also attempted to grow international sales over the last four years through a series of joint ventures in China, India, Europe and Latin America.
In August 2011 Iconix bought the global rights to the Ed Hardy brand in a deal that raised its stake in the label to 85 per cent.
Iconix said it expects the Lee Cooper acquisition to boost the contribution of international business to 33 per cent in 2013. International revenue constituted 18 per cent of total sales in 2011, according to Thomson Reuters data.
Lee Cooper licenses casual wear, footwear and accessories under its namesake brand. The brand is sold in over 80 countries and represents about $500 million in annual global sales. Iconix said it purchased the label through its Luxembourg subsidiary -- Iconix Luxembourg Holdings Sarl.
The company bought the Buffalo David Bitton brand earlier this month to expand into higher-end brands. Iconix also said its board authorized a program to repurchase up to $300 million of its stock over a three year period.
The company, owner of brands such as Ed Hardy, Rocawear and Candie's, said it paid $72 million in cash for the brand. The company has also attempted to grow international sales over the last four years through a series of joint ventures in China, India, Europe and Latin America.
In August 2011 Iconix bought the global rights to the Ed Hardy brand in a deal that raised its stake in the label to 85 per cent.
Iconix said it expects the Lee Cooper acquisition to boost the contribution of international business to 33 per cent in 2013. International revenue constituted 18 per cent of total sales in 2011, according to Thomson Reuters data.
Lee Cooper licenses casual wear, footwear and accessories under its namesake brand. The brand is sold in over 80 countries and represents about $500 million in annual global sales. Iconix said it purchased the label through its Luxembourg subsidiary -- Iconix Luxembourg Holdings Sarl.
The company bought the Buffalo David Bitton brand earlier this month to expand into higher-end brands. Iconix also said its board authorized a program to repurchase up to $300 million of its stock over a three year period.
LOGISTICS
Rosneft and Eni agreed to strengthen their
cooperation by signing a strategic agreement to develop trading and logistics
opportunities. The agreement was signed on February 23 in Rome by Igor Sechin,
Rosneft President and Chairman of the Management Board, and Marco Alverà, CEO
of Eni Trading & Shipping (ETS).
The aim of the agreement is to develop synergies between
the companies’ respective logistic infrastructure networks, extracting
additional value from their own equity crude portfolios and refined products
production.
Rosneft is Russia’s largest oil producer, while Eni
Trading & Shipping is one of the largest buyers of Urals crude in the world
and the largest for the Italian refinery system. This agreement contributes to
securing market access to Rosneft production, and will confirm ETS position as
one of the leading traders in the European market.
Eni Trading & Shipping is Eni’s dedicated
commodities trading arm. It provides service to Eni’s business units and
external counterparties. ETS operates as Eni’s unique interface on the market
to ensure an integrated global view, and supports Eni’s businesses by trading
crudes, refined products, natural gas, power and environmental products,
leveraging Eni’s existing strengths and networks and by designing advanced risk
management solutions.
ETS employs about 530 employees in its offices in
London, Rome, Milan, Houston, Brussels, Amsterdam and Singapore.
TVS Logistics has announced the acquisition of
UK-based Rico Logistics. This will help the company achieve its target of $1
billion turnover by 2015 besides adding new verticals. The total cost of
acquisition, both primary and secondary, will be around Rs 100 crore.
R Dinesh, managing director, TVS Logistics, said the company was looking at inorganic growth. This is the third acquisition by TVS Logistics in the UK that was funded through KKR fund (which had invested Rs 265 crore in January 2012) and internal accruals.
Traditionally TVS Logistics has been focussed on the auto sector. The acquisition will add new verticals, including IT and telecom and equipment products.
The Rs 400-crore Rico Logistics will also bring IT capability and will help the company to offer new solutions for Indian and other Asian customers, said Dinesh.
Sanjive Sharma, MD, Rico Logistics, said the acquisition would help the company have more financial stability and give Rico potential of expanding its offering across Europe and the globe.
R Dinesh, managing director, TVS Logistics, said the company was looking at inorganic growth. This is the third acquisition by TVS Logistics in the UK that was funded through KKR fund (which had invested Rs 265 crore in January 2012) and internal accruals.
Traditionally TVS Logistics has been focussed on the auto sector. The acquisition will add new verticals, including IT and telecom and equipment products.
The Rs 400-crore Rico Logistics will also bring IT capability and will help the company to offer new solutions for Indian and other Asian customers, said Dinesh.
Sanjive Sharma, MD, Rico Logistics, said the acquisition would help the company have more financial stability and give Rico potential of expanding its offering across Europe and the globe.
ODISHA BUSINESS
Jindal Steel Power (JSPL) has introduced one of the
most modern technologies, Schnell Home construction technique, to its Angul
project site. This is one of the technologically advanced and efficient
construction methods, developed by Schnell Group, Italy.
This technology is used for the first time in Odisha and second in India. claimed a press release by JSPL. The Schnell Home construction technique replaces bricks and blocks of traditional construction system with polystyrene sheet panes, assembled together with welded wire mesh.
The panels are finished on site by pouring or spraying concrete to get different structures of the building such as vertical walls, stairs and roof.
This technology is used for the first time in Odisha and second in India. claimed a press release by JSPL. The Schnell Home construction technique replaces bricks and blocks of traditional construction system with polystyrene sheet panes, assembled together with welded wire mesh.
The panels are finished on site by pouring or spraying concrete to get different structures of the building such as vertical walls, stairs and roof.
The Odisha government today said it has decided to
set up a dedicated public sector company for the purpose of increasing
generation of renewable energy, mostly hydro-power production capacity in the
state.
“My government has decided to set up a dedicated
Public Sector Undertaking (PSU) in the name of Green Energy Development
Corporation to give focused attention in development of small hydro power
potential of the state,” the Chief Minister, Naveen Patnaik said here.
Patnaik said the proposed PSU will also focus on
generation of other renewable source of energy including solar and wing power.
Addressing an international seminar on hydro-power
and sustainable development here, he said though the state already have 2,100
MW capacity in hydro-power sector, there are about 12 sites where medium and
major hydro-power projects can be feasible.
The state can generate another 2,000 MW of
hydro-power in these 12 places, he said.
The Chief Minister, however, said the work on these
medium and major projects could not proceed because of various reasons.
Stating that commercially hydro-power has been
proved to be cheaper source of energy, Patnaik said development of hydro-power
source has certain environmental impact as submergence of habitations and
forests, high initial capital cost while electricity generation depends upon
the availability of water in the reservoirs.
RETAIL
US-based
Chevron is aggressively expanding its presence in the Philippines, planning to
build at least 100 retail stations in five years.
The target
number may further increase as the company firms up its network expansion plans,
said Katrina Ignacio, assistant manager for policy, government and public
affairs of local unit Chevron Philippines Inc.
“The
Philippines plays a major role in Chevron International Product’s growth plans
in Asia-Pacific. As the company’s biggest retail network in Asia-Pacific, the
Philippines represents 23 percent of the region’s retail network growth plan,”
Ignacio said in an interview with Inquirer.
Ignacio
did not disclose final investment figures, but said that a typical retail site
would require about P10 million to build and P3 million to P5 million in
monthly working capital. This places the total investment requirement for the
100 planned stations at a minimum of P1 billion.
It was,
however, not made clear how many of the planned stations will be company-owned,
which means the investment requirements will be shouldered by the company, and
how many will be put up under a franchising deal.
As of the
end of 2012, Chevron Philippines has 750 retail sites. It sells a range of
petroleum products, lubricating oils and greases. The company also has 14
facilities, including major terminals, depots and sales offices in the
Philippines. Its import terminal in San Pascual, Batangas, serves as the hub of
its transportation and supply operations in the Philippines.
The country’s retail sector provides enough
opportunity for supporting both absorption of new players as well as expansion
of the existing ones, experts have said.
In order to compete with the organised retail
players of the world, retailers in the country need to adapt themselves to the
new market dynamics and provide proper corporate governance and transparency,
they stated.
“The opportunity in retail is huge for existence of
various retail formats. Understanding and targeting the right consumer is of
essence,”multi—brand retail chain V—Mart CMD Lalit Agarwal said at a
round—table on retail here.
He added that about 50 per cent of consumption in
this country is driven by the middle class.
This expected to rise to 60-63 per cent within 3
years-which reflects the sheer size of the retail industry in India.
The current estimated value of the Indian retail
sector is about $500 billion and is pegged to reach $1.3 trillion by 2020.
Regarding funding opportunities, Resurgent India
Vice President Rajesh Bang said: “There is no dearth of funds for the retail
sector. There is enough opportunity in the market to support absorption of new
players and expansion of existing ones“.
“The adoptions of IT systems have helped traditional
retailers retain their customers. The sector is now focusing on IT optimisation
and effectiveness,” leading provider of specialised retail management solutions
Ginesys CEO Prashant Lohia said.
The Indian retail sector accounts for over 20 per
cent of the country’s gross domestic product (GDP) and contributes 8 per cent
to total employment.
SUPPLY CHAIN
UK companies are quite bullish over India's civil
nuclear market. Close on the heels of Prime Minister Manmohan Singh's
announcement on the commencement of negotiations between India and UK on
bilateral civil nuclear agreement, companies are likely to soon initiate talks
with Nuclear Power Corporation (NPC) and private sector companies including
L&T, Godrej, Kirloskar to become part of supply chain.
Even though UK companies are not engaged in the supply of reactors, they have evinced interest in the supply of number of components including, control, ventilation, reactor parts and also provide enrichment capabilities in India, said senior official of Nuclear Power Corporation (NPC).
NPC official told Business Standard “UK companies have expertise in enrichment capabilities. UK is not uranium producer but companies can convert enriched uranium into fuel. They are quite keen to tap opportunities in the conversion business considering huge fuel requirement in India.” PM’s announcement comes when NPC with the present installed capacity of 4,780 MW proposes to increase the capacity to 63,000 MW by 2032 both through indigenous and foreign reactors.
The official informed that UK companies are also keen on bagging the fabrication contract for nuclear sector. He admitted that although India and UK have signed a joint declaration on civil nuclear cooperation in 2010, the Fukushima nuclear accident took place in March 2011 and the subsequent relook to safety application had hampered talks between the two countries. He added that Prime Minister Manmohan Singh’s announcement will give further boost to negotiations both at the level of two governments and companies.
Even though UK companies are not engaged in the supply of reactors, they have evinced interest in the supply of number of components including, control, ventilation, reactor parts and also provide enrichment capabilities in India, said senior official of Nuclear Power Corporation (NPC).
NPC official told Business Standard “UK companies have expertise in enrichment capabilities. UK is not uranium producer but companies can convert enriched uranium into fuel. They are quite keen to tap opportunities in the conversion business considering huge fuel requirement in India.” PM’s announcement comes when NPC with the present installed capacity of 4,780 MW proposes to increase the capacity to 63,000 MW by 2032 both through indigenous and foreign reactors.
The official informed that UK companies are also keen on bagging the fabrication contract for nuclear sector. He admitted that although India and UK have signed a joint declaration on civil nuclear cooperation in 2010, the Fukushima nuclear accident took place in March 2011 and the subsequent relook to safety application had hampered talks between the two countries. He added that Prime Minister Manmohan Singh’s announcement will give further boost to negotiations both at the level of two governments and companies.
____________________________________________________________________
Source of
Information for this issue: Google alert accessed on 25th and 26th Feb 2013
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