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Gremach Infrastructure Equipments & Projects has decided to acquire 40 nos oil & gas drilling rigs, 40 on-shores and 4 off-shores in a period of 3 to 4 yrs at an approximate cost of $ 1 billion.
Gremach has proposed to tie-up with China's biggest oil & gas rig manufacturer and has placed order for design and manufacture of quantity 4, 2000 HP VFD oil & gas drilling rigs on, BAOJI OILFIELD MACHINERY COMAPANY (BOMCO) owned by China National Petroleum Corporation (CNPC). The contract has an option to order another 36 rigs.
Formation of a joint venture between Bomco and Gremach is mooted wherein BOMCO could pick up equity stake upto 8% in its Singapore based SPV which would be world's first purely rental company for oil & gas drilling rigs. This entity would be in a position to supply new state of the art rigs to global customers, within much shorter delivery period in the face of endemic problem of long delivery period of rigs experienced. Similar rental solutions already exist in caterpillar and volvo rentals.
The recent meeting between Gremach and high level BOMCO team represented at vice president level has put a seal to their deal for placement of order of qty 4 rigs with an option to buy 36 more over a period of coming 3 to 4 years and also to the proposal for a joint venture between two companies.
Gremach has incorporated a Singapore based SPV named Petrogrema Energy. Gremach shall be making investment up to US $ 1 billion considering the vast global market potential in oil drilling business. This business proposal is considered highly profitable, with projected IRR 35% in the light of huge market demand for on shore and off shore drilling rigs considering unprecedented rise in crude prices. Infact, rig rental day rates for off-shore rigs have risen by 13%, averaging to around $ 3 to 5 lakhs per day. In the case of on shore rigs the payback period is estimated at 3 years. Several reputed Banks and other financial institutions have evinced keen interest to fund the above business proposal / acquisition.
Internationally, oil rig owners like NABORS generate 25% profit. From its revenue of $ 4 billion, its profit is $ 1 billion. Another, US top drilling company, PARKER, with revenue of $ 587 million, have also deployed BOMCO rigs similar to that ordered by Gremach. Trans Ocean have order book position of $ 21.4 billion (approximately). This order placement by Gremach shall enable it to become on of the largest land rig owner in the times to come out of India. Gremach had recently acquired 75% stake in a Mozambique company having 11 prospecting licenses of coal, aggregating 13520 Hectares, in prime region of Moatize.
The company made this announcement after the trading hours on Tuesday, 30 October 2007.
The sub-accounts of foreign institutional investors (FIIs), who are required to unwind their positions built up through participatory notes (P-notes) in cash markets over a period of 18 months, are holding on to their exposures.
The move is aimed at extracting bigger profits on their P-notes before the deadline of April 2009 on the back of fast-rising stock prices.
FIIs were also not unwinding their P-note exposures in the derivatives market in a hurry, said dealers.
There are 3,000-odd sub-accounts registered with the Securities and Exchange Board of India (Sebi), and the new rules on P-notes make it mandatory for these sub-accounts to unwind their positions over an 18-month period.
Deven Choksey, managing director, KR Choksey, a local brokerage firm, said FIIs and their sub-accounts were not seen unwinding their exposures as the rising rupee and fast-appreciating stock prices were encouraging them to hold on to their positions.
Hedge funds, according to dealers, have been major investors in the Indian equity markets through P-notes.
“These overseas funds have collected money from investors for taking an exposure into the Indian markets. It is not easy for them to unwind the positions in a hurry,” he said.
According to Sebi, 34 FII sub-accounts issue P-notes or offshore derivative instruments (ODIs).
Tata Realty and Infrastructure, a wholly-owned subsidiary of Tata Sons, has decided to mop up $750 million (Rs 3,000 crore) to fund realty and infrastructure projects. The fund, which is expected to attract investment from insurance companies, pension funds, government entities and endowment funds, is expected to close in a fortnight.
Among these projects are information technology parks. The company is already focusing on projects such as airports, roads, bridges and special economic zones.
A majority of the funds will be utilised for its realty ventures with the balance for infrastructure projects. The company is aiming for a pan-India presence within the next few years. Nearly all major Tata companies, Tata Consultancy Services, Voltas, Tata Motors, Tata Tea and Rallis India have surplus land that can be developed. The Tata Group has been involved in real estate through Tata Housing Development Corporation which has undertaken several residential projects in Mumbai, Pune, Goa and Bangalore.
Two months after signing the heads of agreement to explore a joint production and distribution of light commercial vehicles (LCVs) and engine and engine components with Nissan Motor Co, Ashok Leyland on Monday formalised the deal by entering into a formal agreement with Japan's third- largest auto maker.
This would see the duo collectively invest at least $500 million.
Under the agreements, the two companies would form three joint ventures (JVs) one to manufacture LCVs, another for LCV engines and power train components, and the third for developing LCV products and technology.
Ashok Leyland would hold a 51% stake in the LCV manufacturing JV, which is expected to begin production by 2010.
The initial capacity is pegged at 100,000 units annually and the products would be sold under the Ashok Leyland and Nissan badges in both the domestic and international markets.
Products with a gross vehicle weight (GVW) ranging from 2.5 - 8 tonnes would come under the JV.
In the engine and engine component JV, Nissan will own a 51% stake. The two companies will form an equal joint venture for technology development. Going ahead, there could be a marketing agreement with the two companies.
Carlos Ghosn, president and chief executive, Nissan Motor, said: "We are also studying co-operation at the dealer level as part of our individual sales and distribution networks. This could provide Nissan access to Ashok Leyland's dealers in India and allow Ashok Leyland to access Nissan dealers in specific markets."
Light commercial vehicles have become a focus area for Nissan Motor, which, earlier this year, sold its heavy truck division to Volvo AB.
In Ghosn's own words, the division was a loss-making one that lacked direction and competitive products in the 1990s.
It is expected to sell half a million units this year and has already achieved its 8% operating margin milestone.
For the Rs 7,000-crore Ashok Leyland, which has a stated objective to achieve a Rs 30,000 crore topline from auto and auto-related activities by 2011-12, the LCV segment is crucial.
It is not present in the segment, which grew by a third to almost half a million units last fiscal.
According to R Seshasayee, managing director, Ashok Leyland, "An effective entry into the LCV segment has been on Ashok Leyland's radar for some time now. This partnership with Nissan will allow both companies to develop a range of cost-competitive and customer-oriented LCVs, targeted not only to the Indian market but several select overseas markets."
Mumbai: Goldman Sachs, which has invested more than $1 billion in the Indian market, is ready to double or triple its exposure to the country, its chairman and chief executive said in a newspaper interview published on Monday.
Goldman last year decided to end a 10-year old joint venture with India's Kotak Mahindra and launch its own operation.
"When we came here a year ago we said we'd try to invest $1 billion over the next two years. We have invested more than a $1 billion in India already," Goldman Chairman and Chief Executive Lloyd Blankfein told the Economic Times.
"If we saw opportunities to invest a couple more billion dollars in next year we will do that. It would depend on what the opportunities are, but we would certainly be happy to double or triple our exposure to India."
He said that during the last quarter more than half of the company's revenue came from outside the United States and the Asian business was the fastest growing part of the firm.
"Our strategy in countries like India and China is central to our future growth for the obvious reason that we want our client franchise to grow alongside these economies."
Blankfein said emerging economies would continue to attract more capital inflows and that the reasons were not only the weakening dollar, but also companies from the region, evolving as global players, were attracting investors.
"Just think about here in India Reliance, Tata, Infosys to name just a few," he said.
"These companies are growing not only within their home countries, but globally as well. This has opened the eyes of investors everywhere."
The three corrections in stock markets this year - February, August and now in October - has one common thread, which is the dominance of foreign investors/hedge funds in the equity markets.
Even if the FIIs sell stocks worth a mere $5 billion (which is relatively small, as their total holding amounts to $300 billion and the market capitalization of the domestic stock market is in excess of $1 trillion) within a short span of 4-10 days, this creates unhealthy nervousness in the market, according to market experts.
But except for the latest sell-off, which was triggered by a local event, the other two corrections were caused by global happenings such as the unwinding of yen carry trades by foreign investors in February and the US sub-prime crisis in August.
The Sensex shed 11.69 per cent, or 1,714 points, to 12,938 in February after hedge funds and other foreign investors reduced their “yen carry trades’’ exposures in stock and commodity markets across the globe, including India.
Hedge funds mostly invest in Indian markets through the P-note, an offshore derivative instrument having Indian stocks as underlying and issued by FIIs to anonymous investors.
Yen carry traders, who accessed cheap funds from Japan were forced to unwind their exposure in global markets after Bank of Japan hiked its overnight loan rate to a 10-year high of 0.50 per cent on February 21, triggering a sell-off in most emerging markets.
As a result, the Sensex shaved off nearly 12 per cent from a high 14,652 on February 8 to 12,938 on February 28. During the US sub-prime turmoil in August, the Sensex shaved off nearly 9 per cent, or 1,318 points (from 15,308 on August 8 to 13,990 on August 21) after foreign investors fled riskier assets in emerging markets, including Indian stock markets.
“What we have seen in the first two instances is the withdrawal of leveraged funds (either hedge funds using leverage as a strategy, or hedge funds having leveraged funds from investors). So, it is ideal to say that global events are triggering panic-selling by leveraged investors. It is similar to redemption pressures faced by mutual funds from investors,” said a CIO of a foreign mutual fund.
Last week’s fall of 1,499 points, or 7.8 per cent (from 19,058.67 on October 15 to 17,559.98 on October 19), following Sebi’s proposals to curb capital inflows through the PN route, was also triggered by a sell-off by hedge funds, who invest mostly through offshore derivative instruments.
Wockhardt Ltd on October 24, 2007 has announced the acquisition of Morton Grove Pharmaceuticals Inc., a leading liquid generic and speciality dermatology company in the US having a sales revenue of USD 52 million.Morton Grove is strategic to Wockhardt. It provides entry into the US generic market with a portfolio of 31 products, 13 of which occupy the No. 1 market position. All others are in the Top 3. This represents a clear demonstrable strength in sales and marketing, said the Companys Chairman Habil Khorakiwala. Wockhardt now has a strong position in the liquid market in USA and UK, added the Companys Chairman.Morton Grove is a leading liquid generic and speciality dermatology company in the US with revenues of $ 52 million. Approximately one third of its revenues come from the branded Lindane range of dermatological products. This acquisition will boost the Companys US revenue by providing a complete range of dosage forms right from tablets, capsules, liquids to injectibles. Overall the product range would swell to around 54 products for the US market, of which 23 products are currently being marketed by Wockhardt USA Inc. Morton Grove Pharmaceuticals is Wockhardts third international acquisition in the space of last 12 months, having acquired in October 2006 - Pinewood, the largest generic company in Ireland and the largest supplier of liquid generic products in the UK and in May 2007 - Negma, the fourth largest independent pharmaceutical company in France. These acquisitions in Europe propelled the Company into becoming the largest Indian pharmaceutical company in Europe.
Mumbai: Binani Cement on Tuesday said it plans to invest around Rs 1,800 crore over the next three years to put up two greenfield plants, one in Gujarat and the other in the eastern region of the country.
The company, which recorded more than 200 per cent rise in net profit for the quarter ended September 30, 2007 at Rs 47.87 crore as against Rs 15.11 crore during the corresponding period last fiscal, plans to fund the proposed capital expenditure through an equal debt-equity ratio, company's Deputy Managing Director Vinod Juneja told reporters here.
"We are currently producing 5.3 million tonnes (MT) of cement a year. We plan to take it to 12 MT by 2011-12," he said, adding the proposed plants are at nascent stage and once crystalised, the company would seek the board's approval.
Binani had embarked on a Rs 575-crore capacity expansion programme at its two adjoining plants in Rajasthan two years ago to increase the capacity from 2.25 MT.
Its capacity will increase further to over 6 MT by the fourth quarter of the current fiscal as it completes a one MT production facility at Neem Ka Thana in Northern Rajasthan.
Stating that both the proposed plants would have 2.5 to 3 MT capacity each, Juneja said it requires 400-500 acres of land to put up a plant of that size.
"The location for the plant in the eastern region has not been identified yet. We are working on that," he said.
Ahmedabad:Venture capital company GVFL has announced an investment of Rs 4 crore in Sahajanand Laser Technology Ltd (SLTL), a manufacturer of laser systems for the diamond industry. GVFL will make the investment from its Rs 29.6-crore Gujarat IT Fund.
SLTL, based in Gandhinagar, will be utilising the funds for the expansion of its range of high-end laser machines. Sahajanand pioneered the laser technology for diamond industry in India, which has emerged as the global destination for diamond cutting and adding value to small and very small diamond ‘roughs’, Vishnu Varshney, CEO of GVFL Ltd, said here.
SLTL is the 61st investment being made by GVFL in innovative technology companies across India. It is the first Indian company to introduce a fiber laser machine in the country, Arvind Patel, Managing Director of SLTL, said.
Patel has patents to his credit and also received national awards for innovative laser technology, GVFL said in a release.
Satyam Computer Services has entered into a definitive agreement to acquire 100% stake in Nitor Global Solutions (NITOR) of the UK, a niche consulting firm providing infrastructure management services (IMS), for up to GBP 2.76m (US$ 5.5M) in cash on . The deal marks the second acquisition in Europe by the Indian software giant which recorded revenues of US$1.46 billion in the fiscal year ended 31 March 2007.
NITOR, which was founded in 2002 posted revenues of US$ 3M for year ending September 2007. NITOR has rich expertise in end-to-end solution implementation and program / project management in the IMS space. NITOR brings to Satyam new relationships with some of the dominant players in banking, pharma, and telecom & media industry in Europe.Satyam will merge NITOR into its IMS business. Todd Whaley will lead Satyam's IMS business in Europe following the acquisition.
The company made this announcement during the trading hours today, 23 October 2007.
Earlier today, Satyam computer signed an agreement with Fujitsu Services to provide information technology (IT) services to Reuters as part of a 10-year.
As per recent reports, Satyam Computers Services will soon be opening its development centre in Madurai. The company has applied for 50 acres under ELCOT scheme proposed in the university land on Theni road. The approval of the allotment from the Cabinet came last week. The documentation is under process. As soon as the Government announces the approval, they would start the work, company said.
On 27 September 2007, Satyam Computer Services launched a new solution center in Brisbane's central business district. The facility will support Satyam's Queensland-based clients across various IT platforms with an emphasis on enterprise application-based solutions. The Hyderabad-based Satyam Computers already has development centres in Melbourne and recently launched a regional solutions hub in North Sydney adding up to over 7,500 square meters.
As per recent reports, Satyam Computers has set aside $1 billion (around Rs 4,100 crore) to buy attractive companies.
The company is also scouting for a third acquisition in the consulting space in the US and Europe, in line with its commitment to strengthen this vertical. It is looking at spending anywhere between $50 million and $100 million for this buy, reports suggest.
On 5 September 2007, the company launched integrated digital media framework (IDMF), a solution accelerator for content producers to increase monetizable opportunities. The launch took place on the sidelines of IFRA Expo 2007 in Chennai.
On 27 August 2007, the company launched two niche composite solutions on SAP for the banking as well as the oil & gas industry. Both of these have been certified by SAP and are powered by NetWeaver technology.
On 31 July 2007, the company bagged two multi-million dollar IT contracts with the Federation Internationale de Football Association (FIFA).
Satyam Computer Services’ net profit surges 7.19% to Rs 417.15 crore on 10.75% rise in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006.
The company provides information technology services, Internet services and develops software products.
The board of Remsons Industries has approved joint venture (40:60) with Orscheln Products LLC, a missouri limited liability company (USA). The board has also approved the investment to be made in joint venture. The company has entered into a joint venture with Remsons Industries of Mumbai to manufacture and market Oracheln's products to India's growing marketplace & for Exports.
Orscheln Products LLC is a member of the Orscheln group (+$500M US $) which is comprised of privately - owned companies engaged in manufacturing for the OEM automotive, off-highway, agricultural, marine, military and aviation industries with a global scope. Other pursuits include retail agriculture and hardware sales with 148 stores operational and growing, real estate development, and a host of other diversified interests.
The Orscheln group has major investments in 12 companies, partnerships and joint ventures, 95 distributors in over 17 countries and today employs nearly 3,000 associates worldwide.
This was approved at the board meeting held on 19 October 2007.
Himatsingka Seide Ltd has announced that the Company has completed the acquisition of a 100% stake in DWI Holdings Inc. (DWI). This was consequent to signing definitive agreements in New York on October 18, 2007. Himatsingka acquired the stake through its wholly owned subsidiary, Himatsingka America Inc,.
This acquisition follows the acquisitions of Giuseppe Bellora SpA, in February 2007 andDivatex Home Fashions Inc., in July 2007. The acquisition of DWI is in line withHimatsingka strategy to forward integrate by acquiring high-end brands and large distribution networks in the home textile space.
The enterprise value for the transaction was USD 30 Million. For the fiscal 2007, DWI reported revenues of 47 Million.
Headquartered in Atlanta, Georgia, DWI has the licenses for the sourcing, marketing and distribution of luxury home textile brands Calvin Klein, Barbara Barry and Royal Sateen. These brands are amongst the most prestigious and recognized home textile labels in the North American market with Calvin Klein being the second largest luxury bedding brand distributed through departmental stores in the United States. In addition, the Hospitality division of DWI caters to the unique needs of five star and deluxe properties around the world.
DWI was founded by home textile industry principals Mr. Michael Bernstein, Mr. RudySchmatz and Mr Dennis Cochran, in 2001. Mr. Michael Bernstein will continue to be member of the Board and the CEO of the company. Messrs. Schmatz and Cochran will continue to be the President and CFO of the Company respectively. The incumbent management of DWI will continue to drive growth strategies for the Company.
Mr. Shrikant Himatsingka, Executive Director, Himatsingka Seide, said The three acquired entities will collectively contribute Rs 1100 crores in annual revenues.
MetLife India Insurance is likely to infuse around Rs 120 crore of fresh capital to fund the company's expansion plans. The decision will be taken at next week's board meet.
The company's capital stands at Rs 761 crore now.
The private sector life insurer has also entered into a tie-up with Axis Sales, a subsidiary of Axis Bank, to target new segments including the bank's asset and credit card customers.
Rajesh Relan, managing director, Metlife India Insurance, said, "We had tied up with Axis Bank a year back. At present almost 25 per cent of our total premium is contributed by the bank. Our tie-up with Axis Sales now will help us deepen and build on our relationship with the bank further "
"Axis Sales, with about 4,500 employees and a presence in 22cities, would provide us yet another untapped customer segment towhich we can provide customised and bundled insurance solutions," Relan said.
The premium income is likely to be around Rs 600 crore in the current fiscal. Almost 50 per cent of the total premium of Metlife comes from bancassurance, which includes tie-ups with banks such as J&K Bank, Karnataka Bank, Dhanalakshmi Bank, Axis Bank and Barclays Bank.
MetLife has also ramped up its agency force from 8,000 to 31,000 to take care of its current and proposed network expansion over the next few months. This is a part of the insurer's strategy to use a multi-distribution channel. It intends to add 25 additional branches in the next quarter to take its total branch count to 111 by the close of the financial year.
MetLife India Insurance is a joint venture of Metlife International Holdings Inc, J&K Bank, M Pallonji and other Indian investors.
Almost 90 per cent of MetLife's offerings are unit-linked policies at present. Asked whether the company has apprehensions on the stock market volatility, Relan said: "We have a balanced portfolio of products, whether they are unit-linked or traditional. And considering the earlier downturns in the stock market, which has not impacted ULIPs, there are no apprehensions on this front".
New Delhi: Real estate company DLF plans to invest Rs 16,000 crore over the next 3-4 years to develop up to 18 malls across the country.
According to sources, the investment would flow into mall projects in Chennai, Hyderabad, Kochi, Kolkata, Bangalore, Panipat, Jalandhar, Baroda, Goa, Mumbai and Ludhiana. In all, the shopping projects will entail 22 million square feet.
DLF had recently announced it would raise about Rs 6,000 crore from overseas market to execute its business plans that includes investment in projects in India and abroad, and in buying shares in DLF Offices Trust’s public issue in Singapore.
Mumbai: Reliance Retail Ltd, a subsidiary of Reliance Industries Ltd, is entering a joint venture with Citigroup for a non-banking finance company in India, the Economic Times paper said on Monday.
The firm, in which Citigroup is likely to own a majority stake, will largely deal in loans and credit cards for Reliance Retail customers, the paper said, citing a source close to the development.
The investment was likely to be in the region of about Rs 450 crore ($115 million), it said.
The head of Reliance's consumer finance division declined to comment, the paper said.
A spokesman for Citigroup said he had no comment to offer.
Reliance Retail is spending about $5.5 billion in setting up a countrywide network of multiple formats.
But since it launched last year, it has only set up about 300 of a planned 1,000 stores as protests and attacks by small shop owners and traders have slowed its progress.
Chairman Mukesh Ambani told shareholders last week the company would build "partnerships with global leaders" in each of the areas it operated in, including financial services.
Its loyalty programme, Reliance One, already has more than 1.5 million customers, Ambani had said.
The fragmented retail industry, estimated to be worth about $350 billion, is forecast to nearly double by 2015.
Pantaloon Retail India Ltd, the top listed retailer, recently launched a consumer finance division.
Reliance Life Insurance, one of the leading life insurance players in India, will invest Rs 1000-1200 crore in 2-3 years to expand its insurance business. It also plans to open 400 new branches, for which it has applied to Insurance Regulatory Development Authority (IRDA).
Speaking to Business Standard, chief executive officer, P Nandagopal said, “We have already invested Rs 650 crore in the insurance business and plan to infuse fresh capital of Rs 1000-1200 crore to expand our operations.”
The company has a distribution network of over 340 branch offices across India and intends to open 400 more branches. He said, “We have applied for licences from IRDA for opening 400 new branches across India. About 20 of these branches would be in Punjab and Haryana.”
The company today launched ‘Express Life’, an innovative and customer friendly service, targetting customers between 18 and 45 years of age. The customers would enjoy life insurance cover within three days of submitting the duly filled application form, mandatory documents and requisite premium cheques. “This is the first-of-its-kind initiative in the sector. It would offer life insurance cover almost instantly to customers, without the hassles of a long waiting period, follow-ups and medical check-ups”, he said.
This will redefine the way insurance is bought and sold in India, he said, adding that Reliance Life is the first life insurance player in the country to offer this novel life insurance scheme, with a cover of upto Rs 10 lakh.
The company is aiming to sell one million policies across the country in this financial year.
New Delhi: Dish TV India Ltd, Essel Group''s Direct-to-Home (DTH) service provider, is eyeing to mop up Rs 1,100 crore. The company has already infused about Rs 700 crore in the business. Dish TV has launched its new campaign with a huge investment, the figures it did not disclose. Starring long term brand ambassador Shah Rukh Khan, the campaign is expecting that when Conditional Access System, or digital cable is implemented, more people will choose DTH over CAS, and choose Dish TV over other services.
During the January 1, 2007 implementation of CAS in pockets of New Delhi, Mumbai and Kolkata, 20 per cent switched over to DTH services offered by Dish TV and Tata Sky. In his estimate, the 55 cities would account for 30-40 per cent of the 70 million cable homes; Dish TV''s share works out to 2.1- 2.8 million new subscribers. The campaign is however not promising any price reductions in the set-top boxes. In the South, Sun Networks'' Sun Direct) has already declared it prices.
Private equity firm Red Fort Capital will invest $425 million (about Rs 1,677 crore) this fiscal in the booming Indian real estate market and has tied up with the Prestige Group for a township project in Bangalore.
Red Fort India Real Estate Fund managing director Parry Singh said of the $425 million earmarked, it has already invested $225 million in five projects - one in Chennai and two each in Bangalore and Hyderabad.
Besides these projects, the firm has also tied up with the Prestige Group for a $250 million township project in Bangalore.
"The initial investment in the 800 acres mega township will be around $180 million, where we will put in $80 million and the remaining will be borne by the developer (Prestige)," Singh said.
He said Red Fort Capital has not yet decided about the final investment.
The proposed township would feature 1,000 units of low-cost mass housing for Rs 1,100 per sq ft on 25 acre of land, he said.
This would be a mixed-use project, housing both residential and commercial properties, Singh said, adding "the township will constitute about 2,000 residential units in total."
On its Hyderabad project, Singh said RFC has invested Rs 200 crore to purchase land for building middle class housing units.
The company is currently developing the second phase of the Commercial Tech Park in Bangalore. "We are investing $35 million for the second phase in 2.2 million sq ft of land," Singh said.
