The FIIs on Tuesday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs2,620.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,539.50 Crore and gross debt sold stood at Rs444.60 Crore. Therefore, the net investment of equity reported was Rs81.20 Crore and net debt was (Rs444.60 Crore).
Wednesday, April 30, 2008
Don’t Mix Insurance And Investment
The following is an actual interaction with one of my clients. I am sure several readers will identify with his situation and benefit from the solution offered.
This was the email that he wrote to me:
“Succumbing to the aggressive sales pitch of the agent and the fact that there were precisely three days to go for the end of the fiscal year, I hastily bought an endowment policy four years ago. This 15-year policy offering a sum assured of Rs 8 lakh requires me to pay an annual premium of Rs 52,190.
However, now I find that I am stuck between a rock and a hard place. The return is too low and the commitment too high. The problem is that four years have already passed. I want to come out of this commitment but my agent says that if I stop, I will lose most of my money already invested. I have already paid the premiums for four years, amounting to Rs 2,08,760 (Rs 52,190 x 4). Discontinuing the policy now would mean a loss of the premiums paid. At the same time, continuing it would mean throwing good money into a bad deal. So what is to be done? Is there a way out?”
Here’s the solution I offered him:
“Sometimes, you make the right decision and sometimes you have to make the decision right. This is one situation where you have to have the conviction of making the decision right.
The first step is to realise your mistake. The second is to not repeat it. From now on, please avoid combining insurance and investments. At best, if you need insurance, buy a term plan.
Now, as for your current problem, there is no way of coming out without pain. However, you have the choice of limiting the amount of pain or letting it continue. It’s not as if you will lose all your money. Though you may not recover all of it, every policy has a surrender value and you should surrender the policy with immediate effect. Yes, you will lose money.
However, if you continue, you will lose much more. I can go to the extent of saying that even if the surrender value is zero (that is, if you don’t get anything back) — even then, surrendering and getting out of future commitment may actually be profitable. If you henceforth invest your money wisely, you will find that you can more than make up for your loss.
Now let’s examine the case in terms of the figures involved. First of all, though the sum assured of the policy is Rs 8 lakh, taking into account the expected bonus (which is paid on a non-compounded basis), you would in all probability receive Rs 12.50 lakh after 15 years. Even with the bonus included, the return works out to 5.65% p.a., a rate that may not even cover inflation over the term. So, fundamentally, it would be a good idea to discontinue this investment.
Secondly, as an investor in this policy, you need to know its surrender value. Most insurance policies come with specific surrender values (the value that the investor will get if he were to discontinue the policy for any reason). More often than not, agents forget to apprise investors of the same — what the investor doesn’t know will not hurt him and secondly if the premiums stop, so does the commission.
After studying your policy papers, we found that you will have to forego the first year’s premium and will get 50% of the balance premiums paid as the surrender value of the policy. In other words, in place of Rs 2,08,760 that has already been paid, the surrender value that you will receive will be only Rs 77,673.
Now, prima facie, most investors will reject this idea completely. Losing Rs 1,31,087 (Rs 2,08,760 less Rs 77,673) works out to a loss almost 63%. It would seem like it is better to continue the policy for whatever it is worth, rather than discontinuing it and losing 63% of your investment.
However, the numbers suggested otherwise. You have purchased the policy on March 28, 2004. As on March 28, 2007 (you would have paid the premiums for 2004, 2005, 2006 and 2007), you would receive Rs. 77,673. Now let’s say you keep investing Rs 52,190 each year for the remaining 11 years on your own, instead of paying the premium on the policy. The goal is that you should reach a value of Rs 12.50 lakh, which is what you would have otherwise got, had you continued the policy.
Actually, we also need to make another adjustment — the policy would have given you an insurance cover of Rs 8 lakh. To keep the same constant, buy a term policy. At your age (33 years), the annual premium would work out to Rs 2,677. So now, you will invest the balance Rs 49,513 (Rs 52,190 less Rs 2,677) over a period of the remaining 11 years.
To rephrase the object of the exercise, we are interested in knowing what rate of interest should you earn such that you are indifferent to continuing the policy or surrendering it and reinvesting the proceeds on your own. If you earn anything more, you would be better off and with anything less, you should continue with the original policy.
The rate worked out to 9.96% per annum. In other words, even after surrendering and foregoing almost 63% of the premium paid, a rate of 9.96% p.a. brings you on par with the return on the policy. As mentioned before, if you earn more, you would be better off.
For example, were you to earn say 12% p.a. (which is anyway a conservative estimate) instead of 9.96%, the investment would grow to Rs 13 lakh, and you would actually benefit. By the way, if we impute the rate of return of say Reliance Growth Fund, your investment would have grown to around Rs 52 lakh.”
To conclude
The point of this exercise is not to showcase how much my client would have benefited by assuming various rates of return. Instead, it is to point out that when it comes to investments, it is always better to take remedial actions now than later. Of course, it goes without saying that prevention is better than cure. Or like Donald Trump says, “Some of your best investments could well be the ones that you don’t make.”
This was the email that he wrote to me:
“Succumbing to the aggressive sales pitch of the agent and the fact that there were precisely three days to go for the end of the fiscal year, I hastily bought an endowment policy four years ago. This 15-year policy offering a sum assured of Rs 8 lakh requires me to pay an annual premium of Rs 52,190.
However, now I find that I am stuck between a rock and a hard place. The return is too low and the commitment too high. The problem is that four years have already passed. I want to come out of this commitment but my agent says that if I stop, I will lose most of my money already invested. I have already paid the premiums for four years, amounting to Rs 2,08,760 (Rs 52,190 x 4). Discontinuing the policy now would mean a loss of the premiums paid. At the same time, continuing it would mean throwing good money into a bad deal. So what is to be done? Is there a way out?”
Here’s the solution I offered him:
“Sometimes, you make the right decision and sometimes you have to make the decision right. This is one situation where you have to have the conviction of making the decision right.
The first step is to realise your mistake. The second is to not repeat it. From now on, please avoid combining insurance and investments. At best, if you need insurance, buy a term plan.
Now, as for your current problem, there is no way of coming out without pain. However, you have the choice of limiting the amount of pain or letting it continue. It’s not as if you will lose all your money. Though you may not recover all of it, every policy has a surrender value and you should surrender the policy with immediate effect. Yes, you will lose money.
However, if you continue, you will lose much more. I can go to the extent of saying that even if the surrender value is zero (that is, if you don’t get anything back) — even then, surrendering and getting out of future commitment may actually be profitable. If you henceforth invest your money wisely, you will find that you can more than make up for your loss.
Now let’s examine the case in terms of the figures involved. First of all, though the sum assured of the policy is Rs 8 lakh, taking into account the expected bonus (which is paid on a non-compounded basis), you would in all probability receive Rs 12.50 lakh after 15 years. Even with the bonus included, the return works out to 5.65% p.a., a rate that may not even cover inflation over the term. So, fundamentally, it would be a good idea to discontinue this investment.
Secondly, as an investor in this policy, you need to know its surrender value. Most insurance policies come with specific surrender values (the value that the investor will get if he were to discontinue the policy for any reason). More often than not, agents forget to apprise investors of the same — what the investor doesn’t know will not hurt him and secondly if the premiums stop, so does the commission.
After studying your policy papers, we found that you will have to forego the first year’s premium and will get 50% of the balance premiums paid as the surrender value of the policy. In other words, in place of Rs 2,08,760 that has already been paid, the surrender value that you will receive will be only Rs 77,673.
Now, prima facie, most investors will reject this idea completely. Losing Rs 1,31,087 (Rs 2,08,760 less Rs 77,673) works out to a loss almost 63%. It would seem like it is better to continue the policy for whatever it is worth, rather than discontinuing it and losing 63% of your investment.
However, the numbers suggested otherwise. You have purchased the policy on March 28, 2004. As on March 28, 2007 (you would have paid the premiums for 2004, 2005, 2006 and 2007), you would receive Rs. 77,673. Now let’s say you keep investing Rs 52,190 each year for the remaining 11 years on your own, instead of paying the premium on the policy. The goal is that you should reach a value of Rs 12.50 lakh, which is what you would have otherwise got, had you continued the policy.
Actually, we also need to make another adjustment — the policy would have given you an insurance cover of Rs 8 lakh. To keep the same constant, buy a term policy. At your age (33 years), the annual premium would work out to Rs 2,677. So now, you will invest the balance Rs 49,513 (Rs 52,190 less Rs 2,677) over a period of the remaining 11 years.
To rephrase the object of the exercise, we are interested in knowing what rate of interest should you earn such that you are indifferent to continuing the policy or surrendering it and reinvesting the proceeds on your own. If you earn anything more, you would be better off and with anything less, you should continue with the original policy.
The rate worked out to 9.96% per annum. In other words, even after surrendering and foregoing almost 63% of the premium paid, a rate of 9.96% p.a. brings you on par with the return on the policy. As mentioned before, if you earn more, you would be better off.
For example, were you to earn say 12% p.a. (which is anyway a conservative estimate) instead of 9.96%, the investment would grow to Rs 13 lakh, and you would actually benefit. By the way, if we impute the rate of return of say Reliance Growth Fund, your investment would have grown to around Rs 52 lakh.”
To conclude
The point of this exercise is not to showcase how much my client would have benefited by assuming various rates of return. Instead, it is to point out that when it comes to investments, it is always better to take remedial actions now than later. Of course, it goes without saying that prevention is better than cure. Or like Donald Trump says, “Some of your best investments could well be the ones that you don’t make.”
Disappoints Investors, Chidambaram Sticks To CTT
Mumbai: The Union Finance Minister, P. Chidambaram, preferred to stay away from trade representative bodies and national commodity exchanges demand to scrap commodity transaction tax.
There was expectation that Chidambaram would propose to either reduce or scrap CTT when he replies to the debate in the Lok Sabha on the Finance Bill, 2008. Earlier the two apex bodies — the Confederation of Indian Industry and the Associated Chambers of Commerce and Industry of India — have requested the Government to reconsider the tax. The commodities markets are already grappling with many levies such as the central sales tax, the value-added tax and excise and customs duties, CII had said.
“It was a big disappointment. Trade volumes will take a severe beating once the cost of transaction increases after implementation of CTT. Valuations of commodity exchanges will be hit, particularly when foreign investors are showing keen interest in picking up stakes,” said a commodity exchange chief.
Considering a total turnover of around Rs 40-lakh crore per annum in all commodity exchanges, the Government will garner a maximum revenue of Rs 680 crore by imposing CTT at the rate of 0.017 per cent.
There was expectation that Chidambaram would propose to either reduce or scrap CTT when he replies to the debate in the Lok Sabha on the Finance Bill, 2008. Earlier the two apex bodies — the Confederation of Indian Industry and the Associated Chambers of Commerce and Industry of India — have requested the Government to reconsider the tax. The commodities markets are already grappling with many levies such as the central sales tax, the value-added tax and excise and customs duties, CII had said.
“It was a big disappointment. Trade volumes will take a severe beating once the cost of transaction increases after implementation of CTT. Valuations of commodity exchanges will be hit, particularly when foreign investors are showing keen interest in picking up stakes,” said a commodity exchange chief.
Considering a total turnover of around Rs 40-lakh crore per annum in all commodity exchanges, the Government will garner a maximum revenue of Rs 680 crore by imposing CTT at the rate of 0.017 per cent.
Tuesday, April 29, 2008
Real Estate Firm Uppal Group Is Planning To Invest Over Rs 8,000 Crore
New Delhi: Uppal Group to invest Rs 8,000 cr in 4 SEZs in the next five years to develop four special economic zones and two hotels in the north India.
The Delhi-based company has already received the notification for two SEZs in Gurgaon, while it has got the formal approval for two SEZs planned in Uttar Pradesh.
"Infrastructure work has already started on the 263 acre multi-service SEZ in Gurgaon where we will develop 22 million sq ft in different phases," said the Uppal CEO (SEZs and Hotels) Gian Bansal.
The project cost of the SEZ, including land, is Rs 5,000 crore, he said, adding that the project would be completed by 2013. The construction work on another SEZ in Gurgaon is expected to start in the next three months.
"We are developing an IT/ITeS SEZ in Gurgaon spread over 87 acre of land with built up area of nine million sq ft. The project cost is about Rs 1,500 crore," Bansal said, adding that this project would be completed in the next three years.
Uppal is also planning to develop two more SEZs in UP over 26 acre of land each. "We have got the formal approval for two IT SEZs in UP and notification is under process," he said.
The construction on both the SEZs one in Noida and another in Greater Noida- would start in five months.
A total investment of Rs 800 crore would be made on these two projects. When asked about the source of funding for SEZs, he said it would be done through internal accrual, debts and private equity at project level
The Delhi-based company has already received the notification for two SEZs in Gurgaon, while it has got the formal approval for two SEZs planned in Uttar Pradesh.
"Infrastructure work has already started on the 263 acre multi-service SEZ in Gurgaon where we will develop 22 million sq ft in different phases," said the Uppal CEO (SEZs and Hotels) Gian Bansal.
The project cost of the SEZ, including land, is Rs 5,000 crore, he said, adding that the project would be completed by 2013. The construction work on another SEZ in Gurgaon is expected to start in the next three months.
"We are developing an IT/ITeS SEZ in Gurgaon spread over 87 acre of land with built up area of nine million sq ft. The project cost is about Rs 1,500 crore," Bansal said, adding that this project would be completed in the next three years.
Uppal is also planning to develop two more SEZs in UP over 26 acre of land each. "We have got the formal approval for two IT SEZs in UP and notification is under process," he said.
The construction on both the SEZs one in Noida and another in Greater Noida- would start in five months.
A total investment of Rs 800 crore would be made on these two projects. When asked about the source of funding for SEZs, he said it would be done through internal accrual, debts and private equity at project level
FII Activity On 28-04-2008
The FIIs on Monday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs3,414.90 Crore and the gross debt purchased was (Rs186.90 Crore) while the gross equity sold stood at Rs3,066.10 Crore and gross debt sold stood at Rs236.30 Crore. Therefore, the net investment of equity reported was Rs348.80 Crore and net debt was (Rs423.20 Crore).
Red Fort To Invest Rs 3,500 Crore
Red Fort Capital, an international private equity fund, is planning to invest Rs 3,500 crore in the country's real estate sector during the next one year.
It has also launched a domestic fund few weeks back through which it plans to raise Rs 1,000 crore. The proceeds would be deployed into non-foreign direct investment projects. The first closing of the 6-year domestic fund would be in May, 2008.
From the Rs 3,500 crore raised through the international fund, the company has committed Rs 1,100 crore for several projects.
It has allocated 50% amount towards residential projects and 10-15% each for logistics, commercial office space and smaller ITITES parks.
Construction has begun for Prestige's project in Bangalore, Indu project in Hyderabad, Chennai and NCR, Delhi.
Kuldip Chawlla, Director, Red Fort Capital, told DNA Money, "We are investing in projects which would be worth 10,000 crore by next year. We are buying land and bringing developers to build the projects."
Red Fort is in the final stages of discussion for investing in budget hotel chains. It plans to capitalise on its existing land bank of over 1,000 acres pan India. It has land in North Mumbai, Kolkata, Pune, Chennai, Hyderabad and Delhi.
The company has reported returns in excess of 50% this year and expects the returns to flow from these projects by third-quarter 2009.
It has also launched a domestic fund few weeks back through which it plans to raise Rs 1,000 crore. The proceeds would be deployed into non-foreign direct investment projects. The first closing of the 6-year domestic fund would be in May, 2008.
From the Rs 3,500 crore raised through the international fund, the company has committed Rs 1,100 crore for several projects.
It has allocated 50% amount towards residential projects and 10-15% each for logistics, commercial office space and smaller ITITES parks.
Construction has begun for Prestige's project in Bangalore, Indu project in Hyderabad, Chennai and NCR, Delhi.
Kuldip Chawlla, Director, Red Fort Capital, told DNA Money, "We are investing in projects which would be worth 10,000 crore by next year. We are buying land and bringing developers to build the projects."
Red Fort is in the final stages of discussion for investing in budget hotel chains. It plans to capitalise on its existing land bank of over 1,000 acres pan India. It has land in North Mumbai, Kolkata, Pune, Chennai, Hyderabad and Delhi.
The company has reported returns in excess of 50% this year and expects the returns to flow from these projects by third-quarter 2009.
Monday, April 28, 2008
FII Activity on 25-04-2008
The FIIs on Friday stood as net seller both in equity as well as debt. The gross equity purchased was Rs3,675.20 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs4,201.30 Crore and gross debt sold stood at Rs6.10 Crore. Therefore, the net investment of equity reported was (Rs526.10 Crore) and net debt was (Rs6.10 Crore).
Satra Properties India To Invest In Real Eestate Partnership Firm
The board of Satra Properties India has approved investment in a real estate partnership firm up to Rs 5 crore.
This was approved at the board meeting held on 26 April 2008.
This was approved at the board meeting held on 26 April 2008.
Uniphos Enterprises To Make Investments Up To Rs 500 Crore
The members of Uniphos Enterprises have accorded their unanimous consent to the board to make investments up to an amount of Rs 500 crore in the equity shares capital of United Phosphorus, notwithstanding that such investments in addition to existing investments made, loans / guarantees and securities already given / provided by the company may exceed the limits prescribed.
This was accorded at the extraordinary general meeting held on 28 April 2008
This was accorded at the extraordinary general meeting held on 28 April 2008
Saturday, April 26, 2008
Fuel Crisis Obliges Gazans To Invent Alternatives
GAZA: Hisham Rezeq, a 32-year-old businessman in Gaza, bought a brand new car eight months ago, but he has to ride a bicycle to go to his workplace after Israel stopped fuel supplies to this coastal territory.
"For us there is no other way. This (riding a bicycle) is now my only means of getting around," said Rezeq, whose company is about four kilometres from his home.
The bicycle business is booming in the Gaza Strip in the of wake of the fuel crisis, according to dealers.
"The fuel crisis is definitely having a major influence, as more and more people turn to cycling," said Mohammed al-Soussi, owner of a bicycle shop.
"I'm battling to get new bicycles," al-Soussi said, complaining that he cannot get parts from outside because of the blockade imposed on Gaza.
Israel has shut down all Gaza crossings to the outside world since Islamic Resistance Movement (Hamas) routed security forces loyal to President Mahmoud Abbas of rival Fatah and took control of the coastal enclave last June.
Recently, Israel reduced fuel supplies to Gaza after Palestinian gunmen attacked a fuelling depot on the Gaza-Israel border, killing two Israelis.
Subsequently, more than 90 percent of Gaza cars had to stop working. The lack of transportation has made it difficult for patients to access health care, students to reach their schools, and employees to travel to their workplaces.
Moreover, the fuel shortage has also grounded ambulances and forced the universities to suspend curriculum.
The life in the Gaza City has been totally paralysed, as streets are empty of everything but a handful of passers-by or a lucky taxi driver who managed to get a few litres of fuel from the black market at inflated prices.
"These days remind me of the first intifada when the Israelis used to impose curfews," said Abu Hassan Ja'el, a waiter in a local cafe. "But the curfews were only for a few hours, not like now... It's an open-ended curfew," he added.
In such conditions of poverty, deprivation and desperation, Gazans are risking their lives to make a living and need obliged them to invent.
For taxi drivers, they used cooking gas as an alternative to fuel, but after all kinds of energy have been banned into Gaza, they sought cooking oil, which could cause the engine to break down and environmental and health problems.
"I have no other options," said Sa'eed Abu Al-ouf who used to work as a plumber in Israel and make thousands of dollars each month. "I have kids and they must be fed."
"Many people are coming to buy used cooking oil," said Ehab Akila, a restaurant owner. "The prices of used oil have sky-rocketed to 10 shekels (nearly $3) per litre."
Being pressured by the international community for its cut-off of fuel supplies to the Gaza Strip, Israel decided to pump about 260,000 gallons of diesel fuel to the Hamas-run territory, enough to run the local plant for at least three days.
Kaanan Obeid, a Palestinian energy official, had warned that the plant was in danger of shutting down if fuel was not delivered.
The plant supplies a third of the coastal territory's electricity. The supplies from Israel have been irregular since Palestinians attacked the Israeli fuel depot two weeks ago.
According to Obeid, reserves of industrial-grade fuel have dwindled to 400,000 litres (106,000 gallons).
"For us there is no other way. This (riding a bicycle) is now my only means of getting around," said Rezeq, whose company is about four kilometres from his home.
The bicycle business is booming in the Gaza Strip in the of wake of the fuel crisis, according to dealers.
"The fuel crisis is definitely having a major influence, as more and more people turn to cycling," said Mohammed al-Soussi, owner of a bicycle shop.
"I'm battling to get new bicycles," al-Soussi said, complaining that he cannot get parts from outside because of the blockade imposed on Gaza.
Israel has shut down all Gaza crossings to the outside world since Islamic Resistance Movement (Hamas) routed security forces loyal to President Mahmoud Abbas of rival Fatah and took control of the coastal enclave last June.
Recently, Israel reduced fuel supplies to Gaza after Palestinian gunmen attacked a fuelling depot on the Gaza-Israel border, killing two Israelis.
Subsequently, more than 90 percent of Gaza cars had to stop working. The lack of transportation has made it difficult for patients to access health care, students to reach their schools, and employees to travel to their workplaces.
Moreover, the fuel shortage has also grounded ambulances and forced the universities to suspend curriculum.
The life in the Gaza City has been totally paralysed, as streets are empty of everything but a handful of passers-by or a lucky taxi driver who managed to get a few litres of fuel from the black market at inflated prices.
"These days remind me of the first intifada when the Israelis used to impose curfews," said Abu Hassan Ja'el, a waiter in a local cafe. "But the curfews were only for a few hours, not like now... It's an open-ended curfew," he added.
In such conditions of poverty, deprivation and desperation, Gazans are risking their lives to make a living and need obliged them to invent.
For taxi drivers, they used cooking gas as an alternative to fuel, but after all kinds of energy have been banned into Gaza, they sought cooking oil, which could cause the engine to break down and environmental and health problems.
"I have no other options," said Sa'eed Abu Al-ouf who used to work as a plumber in Israel and make thousands of dollars each month. "I have kids and they must be fed."
"Many people are coming to buy used cooking oil," said Ehab Akila, a restaurant owner. "The prices of used oil have sky-rocketed to 10 shekels (nearly $3) per litre."
Being pressured by the international community for its cut-off of fuel supplies to the Gaza Strip, Israel decided to pump about 260,000 gallons of diesel fuel to the Hamas-run territory, enough to run the local plant for at least three days.
Kaanan Obeid, a Palestinian energy official, had warned that the plant was in danger of shutting down if fuel was not delivered.
The plant supplies a third of the coastal territory's electricity. The supplies from Israel have been irregular since Palestinians attacked the Israeli fuel depot two weeks ago.
According to Obeid, reserves of industrial-grade fuel have dwindled to 400,000 litres (106,000 gallons).
Gee Kay Finance & Leasing To Increase FII's Investment Limit
The members of Gee Kay Finance & Leasing Company has approved the proposal for enhancing the FII's investment limit in company upto 49% of total voting power in the company
This was approved at the extraordinary general meeting held on 22 April 2008.
Friday, April 25, 2008
FII Activity on 24-April-2008
The FIIs on Thursday stood as net seller both in equity as well as debt. The gross equity purchased was Rs2,927.80 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,190.90 Crore and gross debt sold stood at Rs83.60 Crore. Therefore, the net investment of equity reported was (Rs263.10 Crore) and net debt was (Rs83.60 Crore).
Infosys, Wipro To Jointly Invest Rs 1,000 Cr In Kolkata
Kolkata: There is good news on the investment front for West Bengal. IT majors Infosys and Wipro will together invest Rs 1,000 crore in setting up various facilities in Kolkata.
Infosys will set up a “multi-technology, multi-service” development centre near the Rajarhat-Vedic area at an investment of Rs 500 crore in the first phase. The development centre will be spread over 90 acres of land and engage 5,000 people.
It will be a Special Economic Zone, Kris Gopalakrishnan, CEO and Managing Director of Infosys Ltd, told newspersons at Writers’ Buildings here on Thursday after he, along with senior company officials, met the West Bengal Chief Minister, Buddhadeb Bhattacherjee, and others here.
Gopalakrishnan said the development centre here would be engaged in activities “from consultancy to BPO”. He said work on the project would begin as soon as the State Government hands over the land to the company. Operations would begin within one year thereafter.
According to him, Infosys has firmed up plans to hire 25,000 skilled people in the current fiscal
Infosys will set up a “multi-technology, multi-service” development centre near the Rajarhat-Vedic area at an investment of Rs 500 crore in the first phase. The development centre will be spread over 90 acres of land and engage 5,000 people.
It will be a Special Economic Zone, Kris Gopalakrishnan, CEO and Managing Director of Infosys Ltd, told newspersons at Writers’ Buildings here on Thursday after he, along with senior company officials, met the West Bengal Chief Minister, Buddhadeb Bhattacherjee, and others here.
Gopalakrishnan said the development centre here would be engaged in activities “from consultancy to BPO”. He said work on the project would begin as soon as the State Government hands over the land to the company. Operations would begin within one year thereafter.
According to him, Infosys has firmed up plans to hire 25,000 skilled people in the current fiscal
Thursday, April 24, 2008
FII Activity on 24-04-2008
The FIIs on Wednesday stood as net buyer in equity. The gross equity purchased was Rs2,742.10 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,349.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs392.40 Crore and net debt was Rs0.00 Crore.
Shoppers Stop To Invest Rs 1500 Cr To Double Stores In 3 Yrs
Mumbai: Leading fashion and lifestyle retail department store Shoppers Stop will be investing around Rs 1,500 crore over the next three years to double its outlets to 48, a top company official said.
"We are planning to invest Rs 1,500 crore in the next three years. Of this, Rs 500 crore will be raised through equity and warrants, Rs 500 crore through internal accruals and the rest through debt," Shoppers Stop Managing Director B.S. Nagesh told PTI here.
The company, which has filed a letter of offer with stock market regulator Sebi for its rights issue, expects to receive final observations by June, Shoppers Stop CEO Govind Shrikhande said.
At present, there are 24 Shoppers Stop stores in the country which will be doubled in the next three years, Nagesh said.
"We are planning to have at least 48 stores by 2011-12 and the present 1.5 million sq ft area of operation of Shoppers Stop will touch 3.5 million sq ft," Shrikhande said.
The per store area, currently about 40,000-45,000 sq ft, will be increased to around 75,000-85,000 sq feet, he added.
"We are looking at having bigger formats of Shoppers Stop," he said.
The company will get into a number of new Tier-II cities like Ahmedabad, Jalandhar, Ludhiana, Amritsar, Vijayawada and Mangalore, Nagesh said.
"We are planning to invest Rs 1,500 crore in the next three years. Of this, Rs 500 crore will be raised through equity and warrants, Rs 500 crore through internal accruals and the rest through debt," Shoppers Stop Managing Director B.S. Nagesh told PTI here.
The company, which has filed a letter of offer with stock market regulator Sebi for its rights issue, expects to receive final observations by June, Shoppers Stop CEO Govind Shrikhande said.
At present, there are 24 Shoppers Stop stores in the country which will be doubled in the next three years, Nagesh said.
"We are planning to have at least 48 stores by 2011-12 and the present 1.5 million sq ft area of operation of Shoppers Stop will touch 3.5 million sq ft," Shrikhande said.
The per store area, currently about 40,000-45,000 sq ft, will be increased to around 75,000-85,000 sq feet, he added.
"We are looking at having bigger formats of Shoppers Stop," he said.
The company will get into a number of new Tier-II cities like Ahmedabad, Jalandhar, Ludhiana, Amritsar, Vijayawada and Mangalore, Nagesh said.
Wednesday, April 23, 2008
FII Activity on 22-04-2008
The FIIs on Tuesday stood as net buyer in equity. The gross equity purchased was Rs2,893.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,616 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs277.40 Crore and net debt was Rs0.00 Crore.
Pes Invest $4 Bn In First Quarter Of 2008
MUMBAI: India continues to be the most favourable destination for private equity (PE) investments in Asia (excluding Japan) in the first quarter of 2008. The trend, which began in the second quarter of 2007 when India surpassed China in PE investments, intensified with the gap widening between the two countries. India has attracted PE investments worth $4 billion in Q1 of 2008 against China’s $ 570 million.
According to IndusView Advisors, PE investments in India doubled in Q1 of 2008 compared to the corresponding period of 2007, due to huge fund flow into real estate and infrastructure.
These two sectors attracted $1.2 billion, or 28% of total PE investments, during the period, followed by the power sector having received about a 13% share of the pie with $520 million. The finance and telecom sectors were tied for the third most favourable sector for investments with 8.7% of the deals at more than $340 million each.
“India continues to enjoy a favourable investment flavour among investors due to liberal economic initiatives on the part of the government when compared to China which is much regulated," said IndusView chairman Bundeep Singh Rangar.
Expert said an almost dead IPO market and RBI’s stringent norms for raising money through external commercial borrowings and foreign currency convertible bonds are expected to result in India retaining its advantage over China in the PE space this year.
They said the momentum in India is on the rise while it may taper off, albeit marginally, in China after the Beijing Olympics. India’s edge over China can be attributed to the greater transparency and easy exit opportunities the Indian economy provides.
India was lagging behind China in striking PE deals till 2006 when the latter bagged $13 billion against the former’s $ 7 billion. But India turned the table in Q2 of 2007 with signing PE deals worth $10 billion compared to China’s $8 billion. Globally, real estate & infrastructure fund-raising by international real estate private equity funds, has been brisk, with as much as $130 billion raised over the last two.
A large percentage of these funds raised are focused outside of the US for investing in emerging markets such as India and China, said IndusView in a statement. The government’s announcement that 9% of the country’s GDP will be spent on infrastructure by 2012 has created unprecedented investment opportunity.
According to IndusView Advisors, PE investments in India doubled in Q1 of 2008 compared to the corresponding period of 2007, due to huge fund flow into real estate and infrastructure.
These two sectors attracted $1.2 billion, or 28% of total PE investments, during the period, followed by the power sector having received about a 13% share of the pie with $520 million. The finance and telecom sectors were tied for the third most favourable sector for investments with 8.7% of the deals at more than $340 million each.
“India continues to enjoy a favourable investment flavour among investors due to liberal economic initiatives on the part of the government when compared to China which is much regulated," said IndusView chairman Bundeep Singh Rangar.
Expert said an almost dead IPO market and RBI’s stringent norms for raising money through external commercial borrowings and foreign currency convertible bonds are expected to result in India retaining its advantage over China in the PE space this year.
They said the momentum in India is on the rise while it may taper off, albeit marginally, in China after the Beijing Olympics. India’s edge over China can be attributed to the greater transparency and easy exit opportunities the Indian economy provides.
India was lagging behind China in striking PE deals till 2006 when the latter bagged $13 billion against the former’s $ 7 billion. But India turned the table in Q2 of 2007 with signing PE deals worth $10 billion compared to China’s $8 billion. Globally, real estate & infrastructure fund-raising by international real estate private equity funds, has been brisk, with as much as $130 billion raised over the last two.
A large percentage of these funds raised are focused outside of the US for investing in emerging markets such as India and China, said IndusView in a statement. The government’s announcement that 9% of the country’s GDP will be spent on infrastructure by 2012 has created unprecedented investment opportunity.
Top 8 Cities To Get $15 B Investment In Retail
Despite the international slowdown in consumer confidence levels, the retail business in Indian cities is set to continue on its growth trajectory, according to an industry survey.
A recent survey conducted by retail consultant Technopak suggests that the country's top eight cities, including Ahmedabad, will attract an investment of $15 billion over the next five years.
This figure is set to grow further, if investments in malls and other ancillary industries are taken into account.
"The retail sector in India is pegged to attract at least $30 billion over the next five years. Half of this will be diverted to the top eight cities," associate vice-president of Tecknopak Research, Purnendu Kumar, said. "This will include both foreign direct investments (FDI) and investments from domestic majors such as Reliance, Aditya Birla Group and the Future Group," he added.
The survey slots Mumbai, Chennai, Delhi, Hyderabad, Bangalore, Pune, Ahmedabad and Kolkata among the select eight. "Of these, Mumbai, Chennai and Delhi will receive the lion's share, accounting for about 30%, or $9 billion, of the total investments," Kumar said.
According to Technopak, these eight cities currently account for more than 90% of the organised retail market in India. The country's total organised retail market India is estimated at around $15 billion, and is expected to grow at the compounded rate of 30% annually, assuming that the total retail growth remains less than 10%.
The consultancy firm says growth in the sector can further be accelerated if the government opens its doors to the multi-brands market. "In India, foreign players can only enter the cash and carry market, which is not enough to attract foreign investments into the country," Kumar said.
While the top cities will continue to lead the market over the next few years, tier II cities and other growth centres are expected to join the fray, accounting for about 40% of investments. Rural areas are seen receiving nearly $3billion in investments by 2012.
According to international consultant Jones Lang LaSalle Meghraj (JLLM), the country's retail sector is expected to grow by 35% by 2010, driven by a strong economy, favourable demographics, rising wealth levels, changing lifestyles and rising consumer aspirations. The growth is also expected to spill over to smaller cities.
"There is still a dearth of retailers in tier II and tier III cities. It costs less to establish an enterprise in these cities, and retail players can cash in on the high aspiration for brands from the metros, as well," Shubhranshu Pani, JLLM's managing director for retail, said.
A recent survey conducted by retail consultant Technopak suggests that the country's top eight cities, including Ahmedabad, will attract an investment of $15 billion over the next five years.
This figure is set to grow further, if investments in malls and other ancillary industries are taken into account.
"The retail sector in India is pegged to attract at least $30 billion over the next five years. Half of this will be diverted to the top eight cities," associate vice-president of Tecknopak Research, Purnendu Kumar, said. "This will include both foreign direct investments (FDI) and investments from domestic majors such as Reliance, Aditya Birla Group and the Future Group," he added.
The survey slots Mumbai, Chennai, Delhi, Hyderabad, Bangalore, Pune, Ahmedabad and Kolkata among the select eight. "Of these, Mumbai, Chennai and Delhi will receive the lion's share, accounting for about 30%, or $9 billion, of the total investments," Kumar said.
According to Technopak, these eight cities currently account for more than 90% of the organised retail market in India. The country's total organised retail market India is estimated at around $15 billion, and is expected to grow at the compounded rate of 30% annually, assuming that the total retail growth remains less than 10%.
The consultancy firm says growth in the sector can further be accelerated if the government opens its doors to the multi-brands market. "In India, foreign players can only enter the cash and carry market, which is not enough to attract foreign investments into the country," Kumar said.
While the top cities will continue to lead the market over the next few years, tier II cities and other growth centres are expected to join the fray, accounting for about 40% of investments. Rural areas are seen receiving nearly $3billion in investments by 2012.
According to international consultant Jones Lang LaSalle Meghraj (JLLM), the country's retail sector is expected to grow by 35% by 2010, driven by a strong economy, favourable demographics, rising wealth levels, changing lifestyles and rising consumer aspirations. The growth is also expected to spill over to smaller cities.
"There is still a dearth of retailers in tier II and tier III cities. It costs less to establish an enterprise in these cities, and retail players can cash in on the high aspiration for brands from the metros, as well," Shubhranshu Pani, JLLM's managing director for retail, said.
Netxcell Investing $3 M In Expansion
Hyderabad: NetXcell Ltd, services provider for mobile networks, plans to invest $3 million (about Rs 12 crore) in expansion in India and the US.
The company on Tuesday said it has launched a mobile advertising platform Ad-Axis to help telecom service providers to reach out advertisements through mobile phones, which it claimed would become the next important revenue stream for telcos.
Addressing a press conference here, the Executive Chairman of NetXcell , Dayakar Pushkoor, said that the company has had big wins recently including that from Idea for all its circles for outbound diallers for marketing campaigns.
It is already working with Airtel and Aircel for SMS-related services and with Lifestyle Communications and SinglePoint in the US.
The company on Tuesday said it has launched a mobile advertising platform Ad-Axis to help telecom service providers to reach out advertisements through mobile phones, which it claimed would become the next important revenue stream for telcos.
Addressing a press conference here, the Executive Chairman of NetXcell , Dayakar Pushkoor, said that the company has had big wins recently including that from Idea for all its circles for outbound diallers for marketing campaigns.
It is already working with Airtel and Aircel for SMS-related services and with Lifestyle Communications and SinglePoint in the US.
Tuesday, April 22, 2008
Premier Fund Taking Investments Again
Standard Chartered Premier Equity Fund, one of the best performing schemes over the last two years, has opened for subscriptions again.
The scheme, closed since July 21, 2007, was reopened for investments on April 15, 2008.
It is the third-best performing scheme in its category over a two-year timeframe. Given this, and an environment in which mutual funds have been falling over each other to raise more money, it is surprising that the scheme was closed for direct investments for almost nine months.
Kenneth Andrade, VP - equities, Standard Chartered Mutual Fund said, "The scheme has been closed for lump sum subscription for sometime, though investors could enter through systematic transfer plan and systematic investment plan."
"The bulk of our investments are in mid-size companies — it takes time for such companies to go to the next level of growth. We have thus positioned a smaller corpus in line with the opportunity that the portfolio of companies presents. We are targeting high growth and there will be at times a higher degree of volatility. Thus comes the need for building up the corpus gradually," he adds.
When a scheme does well for sometime, it typically sees a surge in the amount of money being invested.
As Jason Zweig tells us in the commentary to Benjamin Graham's all-time investment classic, The Intelligent Investor, as assets under management increase, it leaves a fund manager with fewer options to invest money in.
If he decides to retain the money as cash and not invest, the returns of the fund go down. If he decides to invest in a stock which he already owns and which would have probably gone up by then, his returns are again less. The last option is to buy stocks, which the fund manager would not have bought in the first place.
The easiest thing to do in such a situation is to invest in stocks that form a part of the index the scheme is benchmarked against. This ensures that the scheme at least does not generate returns lesser than the benchmark index.
Zweig adds, "As a fund grows, its fees become more lucrative - making its managers reluctant to rock the boat. The very risk that mangers took to generate their initial high returns could now drive the investors away… and jeopardise all that fee income. So the biggest funds resemble a herd of identical and overfed sheep, all moving in sluggish lockstep, all saying "baaaa" at the same time."
Standard Chartered AMC clearly seems to believe in this and hence is not in the race to get more and more investors to invest in it.
So, how much money is the scheme targeting to collect this time around? "We would look to review this once we collect Rs 200-250 crore more from the current level. Since the inception of the fund, we have always adopted a strategy of building a portfolio in stages and would not let the corpus balloon disproportionately since a very large part of the portfolio is invested in smaller businesses," says Andrade.
Investors with an investment horizon of 3-5 years can look at investing in this scheme. Those who want to make a quick buck should stay away, as it is heavily invested in small and mid-cap stocks, which tend to fall more when the stock market as a whole is not doing well.
In the last three months, when the stock market has not done well, the scheme has given negative returns of 24.98% as against negative returns of 22.51% for the category.
"We invest in smaller businesses companies ahead of the growth curve and it takes time for such companies to go to the next level of growth. We are targeting high growth in this scheme, which does subject the investor to some degree of volatility in the short term with a potential to earn good returns over the longer term," says Andrade.
Investors comfortable with systematic investing can also look to invest in the scheme.
The scheme, closed since July 21, 2007, was reopened for investments on April 15, 2008.
It is the third-best performing scheme in its category over a two-year timeframe. Given this, and an environment in which mutual funds have been falling over each other to raise more money, it is surprising that the scheme was closed for direct investments for almost nine months.
Kenneth Andrade, VP - equities, Standard Chartered Mutual Fund said, "The scheme has been closed for lump sum subscription for sometime, though investors could enter through systematic transfer plan and systematic investment plan."
"The bulk of our investments are in mid-size companies — it takes time for such companies to go to the next level of growth. We have thus positioned a smaller corpus in line with the opportunity that the portfolio of companies presents. We are targeting high growth and there will be at times a higher degree of volatility. Thus comes the need for building up the corpus gradually," he adds.
When a scheme does well for sometime, it typically sees a surge in the amount of money being invested.
As Jason Zweig tells us in the commentary to Benjamin Graham's all-time investment classic, The Intelligent Investor, as assets under management increase, it leaves a fund manager with fewer options to invest money in.
If he decides to retain the money as cash and not invest, the returns of the fund go down. If he decides to invest in a stock which he already owns and which would have probably gone up by then, his returns are again less. The last option is to buy stocks, which the fund manager would not have bought in the first place.
The easiest thing to do in such a situation is to invest in stocks that form a part of the index the scheme is benchmarked against. This ensures that the scheme at least does not generate returns lesser than the benchmark index.
Zweig adds, "As a fund grows, its fees become more lucrative - making its managers reluctant to rock the boat. The very risk that mangers took to generate their initial high returns could now drive the investors away… and jeopardise all that fee income. So the biggest funds resemble a herd of identical and overfed sheep, all moving in sluggish lockstep, all saying "baaaa" at the same time."
Standard Chartered AMC clearly seems to believe in this and hence is not in the race to get more and more investors to invest in it.
So, how much money is the scheme targeting to collect this time around? "We would look to review this once we collect Rs 200-250 crore more from the current level. Since the inception of the fund, we have always adopted a strategy of building a portfolio in stages and would not let the corpus balloon disproportionately since a very large part of the portfolio is invested in smaller businesses," says Andrade.
Investors with an investment horizon of 3-5 years can look at investing in this scheme. Those who want to make a quick buck should stay away, as it is heavily invested in small and mid-cap stocks, which tend to fall more when the stock market as a whole is not doing well.
In the last three months, when the stock market has not done well, the scheme has given negative returns of 24.98% as against negative returns of 22.51% for the category.
"We invest in smaller businesses companies ahead of the growth curve and it takes time for such companies to go to the next level of growth. We are targeting high growth in this scheme, which does subject the investor to some degree of volatility in the short term with a potential to earn good returns over the longer term," says Andrade.
Investors comfortable with systematic investing can also look to invest in the scheme.
FII Activity On 22-04-2008
The FIIs on Monday stood as net buyer in equity. The gross equity purchased was Rs4,067.50 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,368.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs699.00 Crore and net debt was Rs0.00 Crore.
Monday, April 21, 2008
Daimler, India Hero To Invest $1.1 B In Trucks JV
New Delhi: German vehicle maker Daimler AG and India's Hero Group will invest about Rs 4400 crore ($1.1 billion) over five years in their joint venture to make commercial vehicles, the companies said on Monday.
Daimler Hero Motor Corp Ltd will begin making light, medium and heavy commercial vehicles from 2010 for the local market initially, they said in a statement.
The Indian government last month approved the joint venture, which will compete mainly with leader Tata Motors and a venture of Nissan Motor and Ashok Leyland.
Daimler Hero Motor Corp Ltd will begin making light, medium and heavy commercial vehicles from 2010 for the local market initially, they said in a statement.
The Indian government last month approved the joint venture, which will compete mainly with leader Tata Motors and a venture of Nissan Motor and Ashok Leyland.
ITC To Invest Over Rs 15k Cr In The Next Few Years
Mumbai: Cigarette to soap maker, ITC Ltd, has earmarked in excess of Rs 15,000 crore investment over the next few years.
The proposed capex is higher by two-and-a-half times than the entire amount it had invested in the previous decade. It had spent Rs 6,000 crore to "enhance the competitiveness of its businesses".
"Investment plans of over Rs 15,000 crore over the next few years would further enlarge ITC's economic contribution," the company has said in its sustainability report 2007.
The company had earned foreign exchange to the tune of USD 2.8 billion in the previous decade, which comprised over two per cent of the countrys total agri exports.
However, when contacted a company official declined to give the details of the proposed investment plans, but said that so far ITC was a debt-free company and had financed investments from its own sources.
"We do not disclose details of our future investment plans. So far, we are a zero debt company and have financed investments from our own resources," the official told PTI.
Recently, the company Chairman Y.C. Deveshwar has said that the company would put up a food-processing unit in Howrah, West Bengal with an investment of Rs 300 crore. The plant would be operational in this year itself.
In addition to that, the company is constructing two super deluxe luxury hotels at Bengaluru and Chennai.
ITC recorded Rs 12,179 crore net turnovers in 2006-2007, up from 9,790 crore in 2005-06. Contribution to the exchequer also went up to Rs 8,455 crore during 2006-07 from Rs 7,677 crore in 2005-06.
The proposed capex is higher by two-and-a-half times than the entire amount it had invested in the previous decade. It had spent Rs 6,000 crore to "enhance the competitiveness of its businesses".
"Investment plans of over Rs 15,000 crore over the next few years would further enlarge ITC's economic contribution," the company has said in its sustainability report 2007.
The company had earned foreign exchange to the tune of USD 2.8 billion in the previous decade, which comprised over two per cent of the countrys total agri exports.
However, when contacted a company official declined to give the details of the proposed investment plans, but said that so far ITC was a debt-free company and had financed investments from its own sources.
"We do not disclose details of our future investment plans. So far, we are a zero debt company and have financed investments from our own resources," the official told PTI.
Recently, the company Chairman Y.C. Deveshwar has said that the company would put up a food-processing unit in Howrah, West Bengal with an investment of Rs 300 crore. The plant would be operational in this year itself.
In addition to that, the company is constructing two super deluxe luxury hotels at Bengaluru and Chennai.
ITC recorded Rs 12,179 crore net turnovers in 2006-2007, up from 9,790 crore in 2005-06. Contribution to the exchequer also went up to Rs 8,455 crore during 2006-07 from Rs 7,677 crore in 2005-06.
Venture Lighting To Invest $27 M For India Expansion
Chennai: Venture Lighting India Ltd, a wholly owned subsidiary of $270-million Venture Lighting International Inc of the US, plans to invest another $27 million in India for expansion and new facilities.
The company manufactures 5.5 million units of metal halide lamps, which it claims is more energy-efficient and eco-friendly than CFLs. It exports some 5 million units to over 70 countries. Its Indian customers include the Indian Railways, CPWD and some PSUs. Currently, India operations contribute $110 million to the company’s global turnover.
The plan now is to expand the present capacity to 8.5 million with an investment outlay of $15 million. The facility may come up at TIDCO’s new SEZ in Chennai or another SEZ being developed by a private company near the Tamil Nadu-Andhra Pradesh border.
Plans
That apart, it also plans to move its other business in the US, manufacturing of lighting peripherals including nano coating of light reflectors (used in projectors). “We are planning to set up green-field facilities at an investment of $12 million at the Madras Export Processing Zone where we have our current facility,” said Sabu Krishnan, President, Venture Lighting International.
According to Krishnan, moving the manufacturing business to India would enable the company to be 30 per cent cost effective.
The company manufactures 5.5 million units of metal halide lamps, which it claims is more energy-efficient and eco-friendly than CFLs. It exports some 5 million units to over 70 countries. Its Indian customers include the Indian Railways, CPWD and some PSUs. Currently, India operations contribute $110 million to the company’s global turnover.
The plan now is to expand the present capacity to 8.5 million with an investment outlay of $15 million. The facility may come up at TIDCO’s new SEZ in Chennai or another SEZ being developed by a private company near the Tamil Nadu-Andhra Pradesh border.
Plans
That apart, it also plans to move its other business in the US, manufacturing of lighting peripherals including nano coating of light reflectors (used in projectors). “We are planning to set up green-field facilities at an investment of $12 million at the Madras Export Processing Zone where we have our current facility,” said Sabu Krishnan, President, Venture Lighting International.
According to Krishnan, moving the manufacturing business to India would enable the company to be 30 per cent cost effective.
Saturday, April 19, 2008
Whirlpool To Invest $15-20m In Indian Arm
Pune: Home durables maker Whirlpool Corporation will invest $15-20 million in its Indian subsidiary, Whirlpool of India Ltd (WIL), over the next 12 months to enable expansion of its range of higher capacity refrigerators and washers.
The company which recently invested approximately $5 million to set up a new line for manufacture of large frost-free refrigerators at its Ranjangaon facility expects to introduce a 500-litre refrigerator in the coming months.
Elaborating upon their business plan, Tamal Kanti Saha, Vice-President (Sales), WIL, said that the focus would be to push sales of its frost-free refrigerators by 30 per cent during this fiscal. Currently WIL claims second position in the frost-free segment of the Indian refrigerator market with a 23.2 per cent share, while it says it is market leader in the direct cool segment with a 25.6 per cent share.
Notching up
During the nine months ended December 2007, WIL, which earns around 70 per cent of its revenue from refrigerator sales, notched a turnover of Rs 1,389 crore and expects to close the previous fiscal at around Rs 2,000 crore, Saha said. It is targeting overall growth of 25 per cent during the current fiscal on the back of a host of newly-launched products like the ‘Genius’ and ‘Fusion’ range of refrigerators and ‘Professional’ range of washing machines and frost-free fridges. In addition to introducing newer, more India specific products, WIL is also increasing the ad-spend from Rs 70 crore last year to Rs 77 crore this year.
Among the other growth-drivers for the company will be the recently introduced water purifier, air-conditioners and microwave ovens, which it only markets in India. “We sold 100,000 air conditioners and 50,000 ovens last year,” Saha said, adding that the target is 100 per cent growth in these numbers during this 2008-09.
The company which recently invested approximately $5 million to set up a new line for manufacture of large frost-free refrigerators at its Ranjangaon facility expects to introduce a 500-litre refrigerator in the coming months.
Elaborating upon their business plan, Tamal Kanti Saha, Vice-President (Sales), WIL, said that the focus would be to push sales of its frost-free refrigerators by 30 per cent during this fiscal. Currently WIL claims second position in the frost-free segment of the Indian refrigerator market with a 23.2 per cent share, while it says it is market leader in the direct cool segment with a 25.6 per cent share.
Notching up
During the nine months ended December 2007, WIL, which earns around 70 per cent of its revenue from refrigerator sales, notched a turnover of Rs 1,389 crore and expects to close the previous fiscal at around Rs 2,000 crore, Saha said. It is targeting overall growth of 25 per cent during the current fiscal on the back of a host of newly-launched products like the ‘Genius’ and ‘Fusion’ range of refrigerators and ‘Professional’ range of washing machines and frost-free fridges. In addition to introducing newer, more India specific products, WIL is also increasing the ad-spend from Rs 70 crore last year to Rs 77 crore this year.
Among the other growth-drivers for the company will be the recently introduced water purifier, air-conditioners and microwave ovens, which it only markets in India. “We sold 100,000 air conditioners and 50,000 ovens last year,” Saha said, adding that the target is 100 per cent growth in these numbers during this 2008-09.
Friday, April 18, 2008
LG To Invest Rs 480 cr In India
LG Electronics India Private Limited, subsidiary of LG of Korea, will invest Rs 480 crore during the calender year 2008. The company would spend Rs 360 crore towards brand building, while Rs 120 crore would be invested for product development.
The key growth drivers for LG would be laptops, GSM phones and other premium category products. The present market share of the company in the household appliances and electronics segments was ranging from 20 per cent to 34 per cent. LG had earned an export turnover of $230 million in 2007 and is targeted at $300 million in 2008.
The key growth drivers for LG would be laptops, GSM phones and other premium category products. The present market share of the company in the household appliances and electronics segments was ranging from 20 per cent to 34 per cent. LG had earned an export turnover of $230 million in 2007 and is targeted at $300 million in 2008.
Thursday, April 17, 2008
Some Investments To Beat Inflation
High crude oil prices coupled with near-Emergency-like situations in the agri-commodity prices have forced many an investor to re-jig their strategy to account for this factor. Here is a remedy that could help investors:
Basis of theory I have been advocating ‘Hubbert’s Peak’ in crude oil since October 2005 and have been proved dead right. The Hubbert’s Peak theory says productivity of oil wells will constantly be on the decline across the world.
There are various ways you can counter this energy food shortage - keep your petrol tanks full at all times and keep your kitchen & attic well stocked with food grains and items of daily consumption. But they are short-term solutions to a long-term problem.
The gameplan:The following stocks are outperformers (rally more than indices and decline less in times of duress). If the beta delta factor is lower, higher weightages have been allocated. Some ideas appear to be laggards, we are simply betting on future prospects.
Buy and wait or wait and buy? This is a million dollar question as the time period after deploying money actually decides your annualised rate of return.
While we do not rule out price volatility in the near term, we suggest you go ahead and buy these scrips in a phased manner. Like real estate, you need to buy and then wait for the fruits of your labour to materialise on these stocks.
Cairn India: From being a market performer (RSC@100, where 100 = base), the stock is a market outperformer after October 2007. (RSC is a technical term standing for relative strength comparative. When two assets are compared, you basically take one as a yardstick, such as a Nifty) Note that stock is near all time high when the indices remain 20% below peaks.
Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time. The higher the crude prices, the better for this scrip, as a positive co-relation exists. Our conservative target is at 345 + in the long term.
Gail Gaining momentum of late, the stock lagged in the last few quarters and that is changing as the RSC has started gaining since October 2007.
Note the bullish channel was overcome and has not yet been violated downwards as the scrip remains above the threshold of the erstwhile channel. Gann chartists will instantly realise that the scrip has moved upwards into the next higher angle, thereby signaling intentions of edging higher.
The Rs 400 level is now the de facto short-term floor above which the bulls are likely to retain dominance over the bears. Traded volumes are lower than what we would prefer to see. A target of Rs 600+ levels in the next 15-18 months seem a possibility.
Gold BeES: This age old hedge against inflation is available in electronic (demat) format. Note the RSC=100 (same returns as Nifty) of late. Also note the traded volumes in the last 6 weeks, which are showing massive interest emerging on a relative basis. These are signs of “flight to safety” of the smart money and it should pay suit.
If crude is to rally (high probability), this bet is a low risk “no brainer”. Drawdown potential is limited to approximately 100 points. Upside headroom is over 4 times as much. The risk reward ratio itself is compelling and the bet is attractive for long-term players. Investors need not panic on the news of the IMF offloading Gold in the physical market to raise funds cool off overheated sentiments. We see declines as a buy opportunity. Practically the lowest risk proposition of the entire list.
Petronet LNG: The long term wave count was confidence inspiring since 2006 but the time frame appeared laborious. While we expected a long haul, the performance has been almost double that of the Nifty ( RSC = 192 ) and counting. We feel a 25 % reduction in the expected waiting period of 27-30 months is justified.
Should the scrip remain consistently above the 80 mark, expect above average performance as the upmove of the next higher degree unfolds. Traded volumes are picking up since the last fortnight and need to perk up, in line with prices. Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.
Reliance Industries: If the market is to rally, it will be led by this counter. Many triggers exist - high gross refining margins, retail foray (I just bought Reliance tea, salt, sugar), gas discoveries, NELP VII and another refinery coming up at Jamnagar. Even amateur technical analysts will recognise the 52-week simple moving average acting as a support from where the scrip has rallied. Traded volumes are beginning to perk up —- a sign of optimism.
As long as the stock remains above Rs 2,650 levels, the case for the bulls is strong and a rally to (or past) the previous peak is a high probability. We suggest a buy for the long-term investors.
Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.
Suzlon: This scrip is a game of patience and strong nerves. Usually highly volatile and unpredictable, the stock has been a market performer - the RSC = 103. Unfortunately, the beta factor is one of the highest in this list, which makes it a lower exposure proposition compared with the other recommendations.
Note the perfect trend-line support at the 230 levels and therefore a 25 % drawdown from present levels. Traded volumes have spiked higher and that implies stronger hands buying, thereby reducing the chances of a decline to the trend-line. We expect a 50 % and higher appreciation from the current levels and therefore recommend a buy based on risk reward perceptions.
Basis of theory I have been advocating ‘Hubbert’s Peak’ in crude oil since October 2005 and have been proved dead right. The Hubbert’s Peak theory says productivity of oil wells will constantly be on the decline across the world.
There are various ways you can counter this energy food shortage - keep your petrol tanks full at all times and keep your kitchen & attic well stocked with food grains and items of daily consumption. But they are short-term solutions to a long-term problem.
The gameplan:The following stocks are outperformers (rally more than indices and decline less in times of duress). If the beta delta factor is lower, higher weightages have been allocated. Some ideas appear to be laggards, we are simply betting on future prospects.
Buy and wait or wait and buy? This is a million dollar question as the time period after deploying money actually decides your annualised rate of return.
While we do not rule out price volatility in the near term, we suggest you go ahead and buy these scrips in a phased manner. Like real estate, you need to buy and then wait for the fruits of your labour to materialise on these stocks.
Cairn India: From being a market performer (RSC@100, where 100 = base), the stock is a market outperformer after October 2007. (RSC is a technical term standing for relative strength comparative. When two assets are compared, you basically take one as a yardstick, such as a Nifty) Note that stock is near all time high when the indices remain 20% below peaks.
Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time. The higher the crude prices, the better for this scrip, as a positive co-relation exists. Our conservative target is at 345 + in the long term.
Gail Gaining momentum of late, the stock lagged in the last few quarters and that is changing as the RSC has started gaining since October 2007.
Note the bullish channel was overcome and has not yet been violated downwards as the scrip remains above the threshold of the erstwhile channel. Gann chartists will instantly realise that the scrip has moved upwards into the next higher angle, thereby signaling intentions of edging higher.
The Rs 400 level is now the de facto short-term floor above which the bulls are likely to retain dominance over the bears. Traded volumes are lower than what we would prefer to see. A target of Rs 600+ levels in the next 15-18 months seem a possibility.
Gold BeES: This age old hedge against inflation is available in electronic (demat) format. Note the RSC=100 (same returns as Nifty) of late. Also note the traded volumes in the last 6 weeks, which are showing massive interest emerging on a relative basis. These are signs of “flight to safety” of the smart money and it should pay suit.
If crude is to rally (high probability), this bet is a low risk “no brainer”. Drawdown potential is limited to approximately 100 points. Upside headroom is over 4 times as much. The risk reward ratio itself is compelling and the bet is attractive for long-term players. Investors need not panic on the news of the IMF offloading Gold in the physical market to raise funds cool off overheated sentiments. We see declines as a buy opportunity. Practically the lowest risk proposition of the entire list.
Petronet LNG: The long term wave count was confidence inspiring since 2006 but the time frame appeared laborious. While we expected a long haul, the performance has been almost double that of the Nifty ( RSC = 192 ) and counting. We feel a 25 % reduction in the expected waiting period of 27-30 months is justified.
Should the scrip remain consistently above the 80 mark, expect above average performance as the upmove of the next higher degree unfolds. Traded volumes are picking up since the last fortnight and need to perk up, in line with prices. Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.
Reliance Industries: If the market is to rally, it will be led by this counter. Many triggers exist - high gross refining margins, retail foray (I just bought Reliance tea, salt, sugar), gas discoveries, NELP VII and another refinery coming up at Jamnagar. Even amateur technical analysts will recognise the 52-week simple moving average acting as a support from where the scrip has rallied. Traded volumes are beginning to perk up —- a sign of optimism.
As long as the stock remains above Rs 2,650 levels, the case for the bulls is strong and a rally to (or past) the previous peak is a high probability. We suggest a buy for the long-term investors.
Aggressive players may keep futures long positions rolling in the mid far month series on an ongoing basis and hedge by selling the deeply out of money calls in the near month series to reduce costs. This strategy is capital intensive & risky but will yield higher returns over time.
Suzlon: This scrip is a game of patience and strong nerves. Usually highly volatile and unpredictable, the stock has been a market performer - the RSC = 103. Unfortunately, the beta factor is one of the highest in this list, which makes it a lower exposure proposition compared with the other recommendations.
Note the perfect trend-line support at the 230 levels and therefore a 25 % drawdown from present levels. Traded volumes have spiked higher and that implies stronger hands buying, thereby reducing the chances of a decline to the trend-line. We expect a 50 % and higher appreciation from the current levels and therefore recommend a buy based on risk reward perceptions.
Wednesday, April 16, 2008
ING India Unit Plans Fund To Invest In Latin America
Mumbai: ING Investment Management (India) on Tuesday filed initial papers with the market regulator to launch a fund of funds that would invest in one of ING Group's existing fund targeting firms in Latin America.
ING Latin America Equity Fund will mainly invest in ING (L) Invest Latin America Fund, which invests in a diversified portfolio of stocks issued by companies listed or traded in Latin America, the firm said in its offer document.
The firm can also invest up to 35 percent of the assets in units of other overseas mutual funds and up to 20 percent in money market instruments.
ING Latin America Equity Fund will mainly invest in ING (L) Invest Latin America Fund, which invests in a diversified portfolio of stocks issued by companies listed or traded in Latin America, the firm said in its offer document.
The firm can also invest up to 35 percent of the assets in units of other overseas mutual funds and up to 20 percent in money market instruments.
Deccan Aviation’s Angel Investors Hit Pay Dirt
Bangalore: Deccan Aviation may be a poor man’s airline but it has not been so for some of its investors who have made millions out of their initial investment into the venture.
The man who helped Capt G.R. Gopinath to launch India’s first low cost airline, S.N. Ladhani whose Brindavan Beverages invested about Rs 1.5 crore into Deccan Aviation has been able to mop up Rs 150 crore through a combination of sale of its shares in the open market and through the open offer of the UB Group.
Brindavan Beverages and Ladhani had totally about 18 per cent stake pre IPO which reduced to about 9 per cent after the open offer and now stands at a minuscule 3 per cent which indicates Ladhani’s dwindling interest in the airline.
ICICI Ventures and Capital One which invested about $40 million and had about 16 per cent stake each in the airline are learnt to have mopped up a total of around $90 million, sources close to the airline said. A clutch of NRIs, whose company Golden Ventures is based out of Mauritius, also made around $40 million from an initial investment of around $5 million.
“When the stock hit a peak of around Rs 300, Deccan Aviation was a billion-dollar company. Lot of investors and the public benefited from the surge,” Deccan Aviation’s Vice-Chairman, Capt G.R. Gopinath told Business Line.
AC Nielsen appointed
The UB Group is learnt to have appointed market research firm, AC Nielsen to carry out a survey to determine the branding of the merged entity. The survey is expected to throw up results on whether the merged entity should retain the brand identity of Kingfisher Airlines as well as Simplify Deccan separately.
“Right now we are going through an internal debate on whether we should retain separate identities or not,” Capt Gopinath said. Sources in the airline said that while definite benefits from synergies at the back end was what brought the two airlines together, it remains to be seen whether both the airlines will now fly under a common name.
An airline analyst said that by retaining separate identities, both the airlines will not only expand the customer base but it will also help their bottomlines. The analyst pointed out that a low cost airline helps generate more customers or convert more travellers to switch over to flying.
In turn, it helps value or full service carriers to find more customers from a bigger pool to fly their airlines. “Low cost airlines and full service carriers complement each other and a corporate entity which owns both these airlines benefits the most,” the analyst said.
The man who helped Capt G.R. Gopinath to launch India’s first low cost airline, S.N. Ladhani whose Brindavan Beverages invested about Rs 1.5 crore into Deccan Aviation has been able to mop up Rs 150 crore through a combination of sale of its shares in the open market and through the open offer of the UB Group.
Brindavan Beverages and Ladhani had totally about 18 per cent stake pre IPO which reduced to about 9 per cent after the open offer and now stands at a minuscule 3 per cent which indicates Ladhani’s dwindling interest in the airline.
ICICI Ventures and Capital One which invested about $40 million and had about 16 per cent stake each in the airline are learnt to have mopped up a total of around $90 million, sources close to the airline said. A clutch of NRIs, whose company Golden Ventures is based out of Mauritius, also made around $40 million from an initial investment of around $5 million.
“When the stock hit a peak of around Rs 300, Deccan Aviation was a billion-dollar company. Lot of investors and the public benefited from the surge,” Deccan Aviation’s Vice-Chairman, Capt G.R. Gopinath told Business Line.
AC Nielsen appointed
The UB Group is learnt to have appointed market research firm, AC Nielsen to carry out a survey to determine the branding of the merged entity. The survey is expected to throw up results on whether the merged entity should retain the brand identity of Kingfisher Airlines as well as Simplify Deccan separately.
“Right now we are going through an internal debate on whether we should retain separate identities or not,” Capt Gopinath said. Sources in the airline said that while definite benefits from synergies at the back end was what brought the two airlines together, it remains to be seen whether both the airlines will now fly under a common name.
An airline analyst said that by retaining separate identities, both the airlines will not only expand the customer base but it will also help their bottomlines. The analyst pointed out that a low cost airline helps generate more customers or convert more travellers to switch over to flying.
In turn, it helps value or full service carriers to find more customers from a bigger pool to fly their airlines. “Low cost airlines and full service carriers complement each other and a corporate entity which owns both these airlines benefits the most,” the analyst said.
Qualcomm Ventures To Invest In Tessolve
Bangalore: Qualcomm, developer and innovator of advanced wireless technologies and data solutions, has announced its commitment to invest in Indian start-up companies offering innovative technologies and services that enhance the wireless communications and semiconductor ecosystems.
Qualcomm Ventures’ first direct equity investment in India is in Tessolve Services Pvt Ltd, provider of solutions and platforms for semiconductor testing, packaging, qualification and failure analysis.
Qualcom did not disclose the amount. Qualcomm Ventures’ investment strategy will focus on Indian start-ups and private companies that can serve the mobile and semiconductor ecosystems in India through innovation in mobile application/platform software developers, semiconductor components, devices and service platforms, and network infrastructure providers.
It will also actively work with its portfolio companies to provide strategic guidance, advise in enhancing and protecting their innovations, and support in standardising their technologies.
“We are pleased to announce Qualcomm Ventures’ entry to the Indian market, adding to our growing business and R&D presence,” said Kanwalinder Singh, President, Qualcomm India and South Asia.
Karthee Madasamy, Senior Investment Manager and head of India investments, said “We are looking at start-up companies that focus on the growing Indian consumer and enterprise market. With a full-time presence in Bangalore, we are committed to the Indian venture ecosystem.”
Qualcomm Ventures’ first direct equity investment in India is in Tessolve Services Pvt Ltd, provider of solutions and platforms for semiconductor testing, packaging, qualification and failure analysis.
Qualcom did not disclose the amount. Qualcomm Ventures’ investment strategy will focus on Indian start-ups and private companies that can serve the mobile and semiconductor ecosystems in India through innovation in mobile application/platform software developers, semiconductor components, devices and service platforms, and network infrastructure providers.
It will also actively work with its portfolio companies to provide strategic guidance, advise in enhancing and protecting their innovations, and support in standardising their technologies.
“We are pleased to announce Qualcomm Ventures’ entry to the Indian market, adding to our growing business and R&D presence,” said Kanwalinder Singh, President, Qualcomm India and South Asia.
Karthee Madasamy, Senior Investment Manager and head of India investments, said “We are looking at start-up companies that focus on the growing Indian consumer and enterprise market. With a full-time presence in Bangalore, we are committed to the Indian venture ecosystem.”
Tuesday, April 15, 2008
Australia Looks To Invest In India's Infrastructure Growth
Sydney: As India makes infrastructure growth a top national priority, Australian businesses are being urged to seize opportunities in the infrastructure and resources sectors "worth over Australian $50 billion ($46 billion)". A new report compiled for Austrade (The Australian Trade Commission) by KPMG India identifies key resource and infrastructure developments and projects in India.
KPMG Australia's India Business Practice National Leader Kumar Parakala said there are immediate opportunities that Australian companies can target in the next year worth over $50 billion.
Parkala said: "Australian companies need to move fast to compete with companies from the UK, US and Spain. Opportunities are emerging in the power sector in coal and alternative energy; the transport sector in roads, ports, airports and railways, construction, EPC contractors, equipment and services."
A number of Australian infrastructure and resources firms are already doing business in India. They include Arrow Energy (India) Pvt Ltd, Australian Road Research Bureau, BHP Billiton India, Daryl Jackson Architecture, Hydro Tasmania, Leighton India, Micromine Pvt Ltd, Tata BlueScope Steel Ltd and Thiess India Pvt Ltd.
Said Austrade's Senior Trade Commissioner (South Asia) Mike Moignard: "Operating in a market of this size is not without challenges, but it's a market in which Australian innovation and expertise will find exciting new avenues for business success."
The Australian Labour government has reiterated its commitment to raise the trade and economic relationship with India to a "new level" as senior Australian officials arrive in New Delhi later Monday to discuss the terms of reference for the Free Trade Agreement (FTA) feasibility study.
A key focus of the study, expected to be completed by early 2009, will be tariff liberalisation and the removal of other impediments to the trade in goods.
Said Australian Minister for Trade Simon Crean: "The study will consider how an FTA might help take the economic partnership to a stronger level."
He said he was looking forward to discussing these issues with Indian Commerce Minister Kamal Nath when he leads a business delegation to Australia in May for the Joint Ministerial Commission meetings.
At the Melbourne Business School's recent Critical Issues Conference on the impact of China and India on Australian business and trade, Crean said: "Reflecting our joint interests, Australia has played a leading role in building support for a WTO signalling conference on services - progressing an area of key importance to both Australia and India in the Doha Round - international services trade reform.
"In my judgement, the Doha Round is doable and we're closer now to a successful conclusion than at any point previously in the negotiations."
Australia is the leader of the Cairns Group of agricultural exporters while India is a member of the G20 and the G33 groupings at the World Trade Organisation (WTO).
Crean said: "We are working closely with India and China to improve the environment for international agriculture by cooperating to reduce subsidies that distort international markets".
Australia and India were founding members of the General Agreement on Tariffs and Trade (GATT) and are part of the WTO. At the regional level, both are members of the Asean plus 6 forum and the Kevin Rudd government has been a strong supporter of India's membership of the Asia Pacific Economic Cooperation (APEC) forum.
Crean, who visited India in January as part of his first major overseas visit, said: "I was a strong proponent of this while in opposition and will do what I can in coming years to make this happen."
The total trade between Australia and India has been growing by over 30 per cent annually. India is now Australia's ninth largest trading partner and Australia is India's 10th largest trading partner. Two-way trade in goods totalled over $10.7 billion in 2007.
India is Australia's fastest growing major export market, becoming the sixth largest export market, with commodities such as coal, gold, copper ores and wool representing key exports.
Two-way trade in services has been thriving, particularly in education, tourism, financial services, engineering, accountancy, telecommunications and legal services.
Adding value is the recent cooperation agreement signed between the Export Finance and Insurance Corporation (EFIC), Australia's export credit agency, and its Indian counterpart, the Export-Import Bank of India, to help promote trade and investment deals involving Australian and Indian firms.
Crean said: "New prospects are emerging in sectors such as IT, biotechnology, health, film and insurance. Australia's competition watchdog is exploring an exchange programme with New Delhi to boost competition, law and enforcement."
KPMG Australia's India Business Practice National Leader Kumar Parakala said there are immediate opportunities that Australian companies can target in the next year worth over $50 billion.
Parkala said: "Australian companies need to move fast to compete with companies from the UK, US and Spain. Opportunities are emerging in the power sector in coal and alternative energy; the transport sector in roads, ports, airports and railways, construction, EPC contractors, equipment and services."
A number of Australian infrastructure and resources firms are already doing business in India. They include Arrow Energy (India) Pvt Ltd, Australian Road Research Bureau, BHP Billiton India, Daryl Jackson Architecture, Hydro Tasmania, Leighton India, Micromine Pvt Ltd, Tata BlueScope Steel Ltd and Thiess India Pvt Ltd.
Said Austrade's Senior Trade Commissioner (South Asia) Mike Moignard: "Operating in a market of this size is not without challenges, but it's a market in which Australian innovation and expertise will find exciting new avenues for business success."
The Australian Labour government has reiterated its commitment to raise the trade and economic relationship with India to a "new level" as senior Australian officials arrive in New Delhi later Monday to discuss the terms of reference for the Free Trade Agreement (FTA) feasibility study.
A key focus of the study, expected to be completed by early 2009, will be tariff liberalisation and the removal of other impediments to the trade in goods.
Said Australian Minister for Trade Simon Crean: "The study will consider how an FTA might help take the economic partnership to a stronger level."
He said he was looking forward to discussing these issues with Indian Commerce Minister Kamal Nath when he leads a business delegation to Australia in May for the Joint Ministerial Commission meetings.
At the Melbourne Business School's recent Critical Issues Conference on the impact of China and India on Australian business and trade, Crean said: "Reflecting our joint interests, Australia has played a leading role in building support for a WTO signalling conference on services - progressing an area of key importance to both Australia and India in the Doha Round - international services trade reform.
"In my judgement, the Doha Round is doable and we're closer now to a successful conclusion than at any point previously in the negotiations."
Australia is the leader of the Cairns Group of agricultural exporters while India is a member of the G20 and the G33 groupings at the World Trade Organisation (WTO).
Crean said: "We are working closely with India and China to improve the environment for international agriculture by cooperating to reduce subsidies that distort international markets".
Australia and India were founding members of the General Agreement on Tariffs and Trade (GATT) and are part of the WTO. At the regional level, both are members of the Asean plus 6 forum and the Kevin Rudd government has been a strong supporter of India's membership of the Asia Pacific Economic Cooperation (APEC) forum.
Crean, who visited India in January as part of his first major overseas visit, said: "I was a strong proponent of this while in opposition and will do what I can in coming years to make this happen."
The total trade between Australia and India has been growing by over 30 per cent annually. India is now Australia's ninth largest trading partner and Australia is India's 10th largest trading partner. Two-way trade in goods totalled over $10.7 billion in 2007.
India is Australia's fastest growing major export market, becoming the sixth largest export market, with commodities such as coal, gold, copper ores and wool representing key exports.
Two-way trade in services has been thriving, particularly in education, tourism, financial services, engineering, accountancy, telecommunications and legal services.
Adding value is the recent cooperation agreement signed between the Export Finance and Insurance Corporation (EFIC), Australia's export credit agency, and its Indian counterpart, the Export-Import Bank of India, to help promote trade and investment deals involving Australian and Indian firms.
Crean said: "New prospects are emerging in sectors such as IT, biotechnology, health, film and insurance. Australia's competition watchdog is exploring an exchange programme with New Delhi to boost competition, law and enforcement."
Life Insurance Firms Invest More Money In Stocks Than Mfs
Life insurance firms as a group put in more than three times money in Indian stock markets than domestic mutual funds in the last fiscal. Life insurance companies collectively put in around Rs 55, 000 crore in equities as against the total investment of Rs 16,350 crore by mutual funds in 2007-08. During the same period foreign institutional investors, the darlings of Dalal Street, were net investors at Rs 53403 crore.
LIC alone has put in Rs 30,000 crore in the equity market last fiscal. Of which, according to sources, around Rs 20,000 crore came in through ULIPs and the balance Rs 10,000 crore through traditional products in the last fiscal. The entry of new players and the expansion in the distribution network of existing insurers meant an increase in sales and a corresponding jump in equity investment, said an analyst. ULIP also has a lock-in period of three years, which makes it mandatory for an investor to stay in. Bajaj Allianz Life Insurance, another leading insurer, made a net investment of Rs 5,500 crore in the equity market in 2007-08.
LIC alone has put in Rs 30,000 crore in the equity market last fiscal. Of which, according to sources, around Rs 20,000 crore came in through ULIPs and the balance Rs 10,000 crore through traditional products in the last fiscal. The entry of new players and the expansion in the distribution network of existing insurers meant an increase in sales and a corresponding jump in equity investment, said an analyst. ULIP also has a lock-in period of three years, which makes it mandatory for an investor to stay in. Bajaj Allianz Life Insurance, another leading insurer, made a net investment of Rs 5,500 crore in the equity market in 2007-08.
TVS Logistics Mops Up Rs 100cr PE Investment From Goldman Sachs
TVS Logistics Services Ltd (TVSL) has mopped up Rs 100 crore via private equity investment from Goldman Sachs to fuel its growth. This is the first time a private equity investment has been made in a TVS Group company. The funding will support the company to pass Rs 1,000-crore turnover by 2010, increase from Rs 338 crore in 2007-08. Goldman Sachs has infused a significant minority stake. The company likely to go in for an IPO, anytime after 18 months from now. The turnover of TVS group had crossed the $5-billion mark in 2007-08.
TVSL recently acquired a 50 per cent stake in the Mumbai-based Greenarches Ltd and renamed it TVS Infrastructure Ltd. This company will develop logistics parks by infusing about Rs 500 core through a special purpose vehicle. It owns about 20 acres in Pune and 10 acres in Chennai and plans to build up a land bank of about 200 acres in automotive hubs such as Gurgaon, Halol, Hosur, Indore, Lucknow, Singur and Uttranchal. TVSL recently formed 75:25 joint venture company, TVS Dynamic Global Freight Services Ltd, along with Dynamic Freight Forwarding Service.
TVSL recently acquired a 50 per cent stake in the Mumbai-based Greenarches Ltd and renamed it TVS Infrastructure Ltd. This company will develop logistics parks by infusing about Rs 500 core through a special purpose vehicle. It owns about 20 acres in Pune and 10 acres in Chennai and plans to build up a land bank of about 200 acres in automotive hubs such as Gurgaon, Halol, Hosur, Indore, Lucknow, Singur and Uttranchal. TVSL recently formed 75:25 joint venture company, TVS Dynamic Global Freight Services Ltd, along with Dynamic Freight Forwarding Service.
Monday, April 14, 2008
Vardhaman Developers To Invest Rs 400 Cr In Jewellery Malls
Mumbai: Vardhaman Developers, which are set to launch Mumbai's first jewellery mall Jewel World, will build four more such malls with an investment of over Rs 400 crore, a top company official said.
"We hope to launch Jewel World by June and are planning to build four more jewellery malls in Mumbai before we start expanding in India," Vardhaman Developers Managing Director Rajesh Vardhan told PTI.
"The investments in the four malls will be upwards of Rs 400 crore and will be raised by the company through its own resources," Vardhan added.
The four malls are likely to come up in the suburban Mumbai areas of Borivli, Mulund, Ghatkopar and Santa Cruz.
Jewel World, which proposes to be a one-stop-shop for all kinds of jewellery in the traditional Zaveri Bazaar market here, probably has the most expensive lease rentals.
"The lease rentals for Jewel World is Rs 475 per square feet, almost double the general malls and a tad more than the high street malls," Vardhan said.
"With conservative estimates, we expect Jewel World to witness a Rs 2,000 crore turnover in the first year of operations," Vardhan said.
"We hope to launch Jewel World by June and are planning to build four more jewellery malls in Mumbai before we start expanding in India," Vardhaman Developers Managing Director Rajesh Vardhan told PTI.
"The investments in the four malls will be upwards of Rs 400 crore and will be raised by the company through its own resources," Vardhan added.
The four malls are likely to come up in the suburban Mumbai areas of Borivli, Mulund, Ghatkopar and Santa Cruz.
Jewel World, which proposes to be a one-stop-shop for all kinds of jewellery in the traditional Zaveri Bazaar market here, probably has the most expensive lease rentals.
"The lease rentals for Jewel World is Rs 475 per square feet, almost double the general malls and a tad more than the high street malls," Vardhan said.
"With conservative estimates, we expect Jewel World to witness a Rs 2,000 crore turnover in the first year of operations," Vardhan said.
Saturday, April 12, 2008
JK Tyre Buys Mexican Tyremaker For Rs 270 Cr
New Delhi: JK Tyre & Industries Ltd on Friday said it has acquired Mexican tyre company Tornel for Rs 270 crore to expand its global footprint.
The buyout is expected to close by end-May 2008, the company said in a statement.
Tornel has three tyre plants with a combined annual capacity of 6.6 million tyres and employs 2,000 people, the statement added.
The buyout is expected to close by end-May 2008, the company said in a statement.
Tornel has three tyre plants with a combined annual capacity of 6.6 million tyres and employs 2,000 people, the statement added.
TVSL Raises Rs 100 Cr Through PE
Chennai: TVS Logistics Services Ltd (TVSL) has raised Rs 100 crore through private equity investment from Goldman Sachs to fuel its growth. This is the first time a private equity investment has been made in a TVS Group company. The funding will support the company to notch a Rs 1,000-crore turnover by 2010, up from Rs 338 crore in 2007-08.
Addressing the media, the Chairman of TVSL, Suresh Krishna, said Goldman Sachs has invested a significant minority stake, which according to him may vary between 10-30 per cent. This funding was a fresh infusion and there was no dilution. The company may go in for an IPO, anytime after 18 months from now, he added.
Krishna said that the turnover of TVS group had crossed the $5-billion mark in 2007-08. To a question why TVSL went in for private equity without considering funding options from within the group, he said it was determined by market forces. Besides the growth rate of the group companies was high, with every company leveraging emerging opportunities, and thereby demanding more investments. In this situation the infusion of funds from the group into TVSL would be counter productive, he added.
On the advantages of funding from Goldman Sachs, the Operating Director of TVSL, R. Dinesh, said it would allow the company to leverage the contacts and reach of the private equity firm to help accelerate growth.
Recent ventures
TVSL recently took a 50 per cent stake in the Mumbai-based Greenarches Ltd and renamed it TVS Infrastructure Ltd, he said. This company would create logistics parks by investing about Rs 500 core through a special purpose vehicle. It owns about 20 acres in Pune and 10 acres in Chennai and plans to build up a land bank of about 200 acres in automotive hubs such as Gurgaon, Halol, Hosur, Indore, Lucknow, Singur and Uttranchal, he added.
TVSL recently formed 75:25 joint venture company, TVS Dynamic Global Freight Services Ltd, along with Dynamic Freight Forwarding Service, Dinesh, said. The turnover of the new entity would reach Rs 250 crore in three years. The company has also into entered commutation solutions for corporate staff transportation and plans to expand the fleet size from the current 200 buses to 1,000 buses in two years.
He said TVSL would enter finished goods transportation by establishing joint ventures with operators and through mergers and acquisitions. These joint ventures would contribute around Rs 100 crore during this fiscal, he added.
Addressing the media, the Chairman of TVSL, Suresh Krishna, said Goldman Sachs has invested a significant minority stake, which according to him may vary between 10-30 per cent. This funding was a fresh infusion and there was no dilution. The company may go in for an IPO, anytime after 18 months from now, he added.
Krishna said that the turnover of TVS group had crossed the $5-billion mark in 2007-08. To a question why TVSL went in for private equity without considering funding options from within the group, he said it was determined by market forces. Besides the growth rate of the group companies was high, with every company leveraging emerging opportunities, and thereby demanding more investments. In this situation the infusion of funds from the group into TVSL would be counter productive, he added.
On the advantages of funding from Goldman Sachs, the Operating Director of TVSL, R. Dinesh, said it would allow the company to leverage the contacts and reach of the private equity firm to help accelerate growth.
Recent ventures
TVSL recently took a 50 per cent stake in the Mumbai-based Greenarches Ltd and renamed it TVS Infrastructure Ltd, he said. This company would create logistics parks by investing about Rs 500 core through a special purpose vehicle. It owns about 20 acres in Pune and 10 acres in Chennai and plans to build up a land bank of about 200 acres in automotive hubs such as Gurgaon, Halol, Hosur, Indore, Lucknow, Singur and Uttranchal, he added.
TVSL recently formed 75:25 joint venture company, TVS Dynamic Global Freight Services Ltd, along with Dynamic Freight Forwarding Service, Dinesh, said. The turnover of the new entity would reach Rs 250 crore in three years. The company has also into entered commutation solutions for corporate staff transportation and plans to expand the fleet size from the current 200 buses to 1,000 buses in two years.
He said TVSL would enter finished goods transportation by establishing joint ventures with operators and through mergers and acquisitions. These joint ventures would contribute around Rs 100 crore during this fiscal, he added.
Friday, April 11, 2008
Mercator Lines To Invest Rs 4,000 Cr This Fiscal
Mumbai: Country's second largest private shipping firm by fleet size Mercator Lines has lined up an investment of Rs 4,000 crore to buy dredgers and dry bulk cargo carriers, a top company official said.
"We would place orders for four or five more dredgers from Europe before March 2009. We would buy four dry cargo carriers from resale and place orders for four more,'' the official said.
Six months ago, the company ventured into dredging by buying three second-hand dredgers and has placed an order for one more dredger from China. The company has invested about Rs 400 crore in the purchase of these dredgers, which are deployed with Dredging Corporation of India.
Explaining the rationale behind entering the dredging business, the official said, "There is a huge scope for dredging in Southeast Asia because lots of ports are coming up and the existing ports want to deepen to attract bigger ship.''
The company would go for different types of dredgers in its portfolio. The company plans to place orders from Europe for its new dredgers because there are some quality problems with Chinese dredgers, he said.
Similarly, the company plans to add eight dry cargo vessels to its existing fleet of bulk carriers. "The funds for its expansion plans would not be a problem because Mercator's balance sheet is strong. We can get a loan up to 75 per cent of Rs 4,000 crore,'' the official added.
"We would place orders for four or five more dredgers from Europe before March 2009. We would buy four dry cargo carriers from resale and place orders for four more,'' the official said.
Six months ago, the company ventured into dredging by buying three second-hand dredgers and has placed an order for one more dredger from China. The company has invested about Rs 400 crore in the purchase of these dredgers, which are deployed with Dredging Corporation of India.
Explaining the rationale behind entering the dredging business, the official said, "There is a huge scope for dredging in Southeast Asia because lots of ports are coming up and the existing ports want to deepen to attract bigger ship.''
The company would go for different types of dredgers in its portfolio. The company plans to place orders from Europe for its new dredgers because there are some quality problems with Chinese dredgers, he said.
Similarly, the company plans to add eight dry cargo vessels to its existing fleet of bulk carriers. "The funds for its expansion plans would not be a problem because Mercator's balance sheet is strong. We can get a loan up to 75 per cent of Rs 4,000 crore,'' the official added.
Global Real Estate Investment Volumes Likely To Decline
Mumbai: Real estate management and services firm Jones Lang LaSalle expects global investment volumes to be down by over 30 per cent in 2008, after a record year in 2007 when volumes were up eight per cent year-on-year to $759 billion.
Asia may be more resilient, though volumes will not achieve 2007 levels, its latest global real estate capital report said. Jones Lang operates in over 700 cities in more than 60 countries.
Tony Horrell, International Director and Head of European Capital Markets, said reduced debt availability and investor confidence were likely to stay for much of the first half of 2008 as the impact of the debt squeeze continues to ripple through markets, and central bankers and financiers work to stabilise and stimulate the debt markets. “We do not expect a strategic and planned withdrawal of capital from real estate in 2008, or investors to significantly adjust their allocations to the asset class. Forecasts for 2008 remain positive and the long-term trends in real estate continue to be positive drivers.”
Whilst domestic investment remained at about $400 billion globally in 2007, similar to 2006 volumes, cross-border investment (purchaser, vendor or both are from outside the country where the asset is located) increased by $58 billion to $357 billion in 2007 and of that, inter-regional investment (purchaser, vendor or both are from outside the region) accounted for $242 billion.
Asia Pacific
Direct commercial real estate investment reached a record $121bn in 2007, up 27 per cent on 2006. Japan, by far the largest market in the region, accounted for 50 per cent of the total transactions.
Stuart Crow, Head of Asia Capital Markets, said, “We are seeing a definite shift in the origin of active investors. While the Australian Listed Property Trusts (LPTs) played a large part in the buying activity in 2007 within the region, equity market dynamics at home are making it difficult for many of these funds to make accretive acquisitions outside of Australia. Instead, we are witnessing the re-emergence of Japanese interests in overseas investments, particularly in the developing markets of China, India and Vietnam.”
Asia may be more resilient, though volumes will not achieve 2007 levels, its latest global real estate capital report said. Jones Lang operates in over 700 cities in more than 60 countries.
Tony Horrell, International Director and Head of European Capital Markets, said reduced debt availability and investor confidence were likely to stay for much of the first half of 2008 as the impact of the debt squeeze continues to ripple through markets, and central bankers and financiers work to stabilise and stimulate the debt markets. “We do not expect a strategic and planned withdrawal of capital from real estate in 2008, or investors to significantly adjust their allocations to the asset class. Forecasts for 2008 remain positive and the long-term trends in real estate continue to be positive drivers.”
Whilst domestic investment remained at about $400 billion globally in 2007, similar to 2006 volumes, cross-border investment (purchaser, vendor or both are from outside the country where the asset is located) increased by $58 billion to $357 billion in 2007 and of that, inter-regional investment (purchaser, vendor or both are from outside the region) accounted for $242 billion.
Asia Pacific
Direct commercial real estate investment reached a record $121bn in 2007, up 27 per cent on 2006. Japan, by far the largest market in the region, accounted for 50 per cent of the total transactions.
Stuart Crow, Head of Asia Capital Markets, said, “We are seeing a definite shift in the origin of active investors. While the Australian Listed Property Trusts (LPTs) played a large part in the buying activity in 2007 within the region, equity market dynamics at home are making it difficult for many of these funds to make accretive acquisitions outside of Australia. Instead, we are witnessing the re-emergence of Japanese interests in overseas investments, particularly in the developing markets of China, India and Vietnam.”
FII Activity On 11-04-2008
The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,040.80 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,213.00 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs172.30 Crore) and net debt was Rs0.00 Crore.
Thursday, April 10, 2008
SRF Approves Rs 17 Crore Expansion Project
Mumbai: Tyre cord maker SRF Ltd said on Wednesday its board has approved a proposal to add capacity to its chloromethane plant.
The company will invest Rs 17 crore for the project, it said in a statement.
The company will invest Rs 17 crore for the project, it said in a statement.
Toyota Contacting Vendors For Small Car
New Delhi/ Bangalore: One of the world’s large car makers, Toyota Motor Corporation (TMC), is learnt to have zeroed in on vendors for the small car it plans to manufacture out of India.
Within two months of the TMC President, Katsuaki Watanabe, visiting the country, the company’s senior Managing Director, A.Okabe, will be here. On Friday, Okabe is scheduled to meet component vendors in the Capital to discuss the company’s long-term strategy for the Indian market and its plans for the small car.
In January end, Watanabe had met the Prime Minister and senior Government officials to apprise them of the company’s plans to double investments and capacity in India. Sources told Business Line that Toyota has started issuing Letters of Intent (LoIs) to vendors, an indication that its small car project is finally taking off.
While it has not issued LoIs to all its vendors, it has finalised plans for some of the components that require a longer period of time to be developed.
Since the last two years, Toyota had been asking vendors to submit their quotations; but considering the frequency of visits by its top management to India, component companies expect an announcement this time round.
“Watanabe had indicated during his visit that Toyota has been slow in understanding the Indian market. But he would now like more action to make up for the lost time,” said a source familiar with the development. This could be through new launches every year.
New launches
“Toyota is also planning to launch a model every year in the domestic market,” said a source close to the company. For its much- talked about small car, Toyota would first launch in markets like India, and later in other markets. TMC’s top management had stated that India could be one of the venues from where the company would debut its small car for the global market. India is already becoming recognised as a small car hub, with Nissan-Renault, Volkswagen and Honda entering the segment.
Toyota’s small car would be manufactured from a plant located near its existing plant in Bidadi, for which the company is expected to make an investment of Rs 1,500 crore.
Within two months of the TMC President, Katsuaki Watanabe, visiting the country, the company’s senior Managing Director, A.Okabe, will be here. On Friday, Okabe is scheduled to meet component vendors in the Capital to discuss the company’s long-term strategy for the Indian market and its plans for the small car.
In January end, Watanabe had met the Prime Minister and senior Government officials to apprise them of the company’s plans to double investments and capacity in India. Sources told Business Line that Toyota has started issuing Letters of Intent (LoIs) to vendors, an indication that its small car project is finally taking off.
While it has not issued LoIs to all its vendors, it has finalised plans for some of the components that require a longer period of time to be developed.
Since the last two years, Toyota had been asking vendors to submit their quotations; but considering the frequency of visits by its top management to India, component companies expect an announcement this time round.
“Watanabe had indicated during his visit that Toyota has been slow in understanding the Indian market. But he would now like more action to make up for the lost time,” said a source familiar with the development. This could be through new launches every year.
New launches
“Toyota is also planning to launch a model every year in the domestic market,” said a source close to the company. For its much- talked about small car, Toyota would first launch in markets like India, and later in other markets. TMC’s top management had stated that India could be one of the venues from where the company would debut its small car for the global market. India is already becoming recognised as a small car hub, with Nissan-Renault, Volkswagen and Honda entering the segment.
Toyota’s small car would be manufactured from a plant located near its existing plant in Bidadi, for which the company is expected to make an investment of Rs 1,500 crore.
ICICI Prudential's Fund To Invest More In Stocks
Mumbai: ICICI Prudential Asset Management Co Ltd said on Wednesday it will raise the equity exposure limit in one of its mixed asset funds from May 2.
ICICI Prudential Child Care Plan - Study Plan, will invest up to 25 per cent of its assets in stocks as compared with up to 15 per cent now.
Those not willing to accept the change can redeem units without paying exit fee between April 10 and April 30, it said.
ICICI Prudential Child Care Plan - Study Plan, will invest up to 25 per cent of its assets in stocks as compared with up to 15 per cent now.
Those not willing to accept the change can redeem units without paying exit fee between April 10 and April 30, it said.
FII Activity On 09-04-2008
The FIIs on Wednesday stood as net buyer both in equity while the net seller in debt. The gross equity purchased was Rs2,636.30 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,487.60 Crore and gross debt sold stood at Rs20.00 Crore. Therefore, the net investment of equity reported was Rs148.70 Crore and net debt was (Rs20.00 Crore).
Wednesday, April 9, 2008
I-Flex Solutions - Israel Discount Bank Selects FLEXCUBE For Its International Operations
i-flex Solutions Ltd on April 09, 2008 has announced that Israel Discount Bank (IDB), one of Israels leading financial groups has chosen FLEXCUBE® as its core banking platform for its UK operations. The first FLEXCUBE deployment will be at IDBs UK operations. IDB is considering progressively rolling out the solution internationally. The bank operates through a network of subsidiaries, branches and representative offices in 18 financial centers across the world, including USA, Europe and Latin America.
For the UK, IDB has selected FLEXCUBE Release 10.0, as well as Acumen, to deliver corporate, retail and private banking services from a single platform.
Olivier Trancart, CEO, i-flex solutions b.v., said: The results of IDBs evaluation are very rewarding indeed. We demonstrated the flexibility and coverage in FLEXCUBE required to service corporate, retail and private banking business units within the bank. In fact, we are addressing these business needs on a single platform. IDB has engaged us as a partner to implement the platform on our latest release, FLEXCUBE Release 10.0, including FLEXCUBE Private Banking Suite. He added: IDB is a prestigious win for us. Working with them further reinforces our investment and commitment to the larger UK international banking community looking at replacing their legacy systems.
For the UK, IDB has selected FLEXCUBE Release 10.0, as well as Acumen, to deliver corporate, retail and private banking services from a single platform.
Olivier Trancart, CEO, i-flex solutions b.v., said: The results of IDBs evaluation are very rewarding indeed. We demonstrated the flexibility and coverage in FLEXCUBE required to service corporate, retail and private banking business units within the bank. In fact, we are addressing these business needs on a single platform. IDB has engaged us as a partner to implement the platform on our latest release, FLEXCUBE Release 10.0, including FLEXCUBE Private Banking Suite. He added: IDB is a prestigious win for us. Working with them further reinforces our investment and commitment to the larger UK international banking community looking at replacing their legacy systems.
DSP ML Natural Resources And New Energy Fund Raises Rs 265 Crore
Engages in the discovery, development, production of natural resources and alternative energy. DSP Mutual Fund has collected Rs 265 crore through its DSP ML Natural Resources And New Energy Fund during its initial offer period from 3 March 2008 to 27 March 2008. DSP Merrill Lynch Natural Resources And New Energy Fund is an open-ended equity growth scheme. The primary investment objective of the scheme is to seek to generate capital appreciation and provide long term growth opportunities by investing in equity and equity related securities of companies domiciled in India whose pre-dominant economic activity is in the discovery, development, production, or distribution of natural resources, viz., energy, mining etc; alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage and enabling energy technologies.
FII Activity On 09-04-2008
The FIIs on Tuesday stood as net buyer both in equity while the net seller in debt. The gross equity purchased was Rs4,983.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs4,607.00 Crore and gross debt sold stood at Rs119.90 Crore. Therefore, the net investment of equity reported was Rs376.70 Crore and net debt was (Rs119.90 Crore).
Tuesday, April 8, 2008
SAIL Mines Reports 5.7% Production Growth
The Raw Materials Division of SAIL has reported its highest ever production of 18 million tons (MT) in 2007-08, reporting a growth of 5.7 per cent over the previous year. Individually its Barsua Iron Mines registered a whopping rise of 32 per cent followed by 30.7 per cent of Chiria mines over the last fiscal. RMD''s other mines at Gua, Bolani, Meghahatuburu, and Kiriburu attained the best ever production recording a growth of 9.1 per cent, 8.7 per cent, 4.3 per cent, and 4.2 per cent respectively over the previous year. SAIL aims to produce 42 MT of iron ore by 2010-11. RMD, which operates seven iron ore mines in eastern India. At its Chiria mines, RMD has recently developed the Manoharpur siding for full rake loading with an investment of Rs 2 crore, which will decrease the loading time by up to 40 per cent. For environment protection a dry fogging system for 600 TPH crushing & screening plant has been installed at Bolani mines infusing more than Rs 63 lakh.
Pyramid Saimira To Infuse Rs 40cr
Pyramid Saimira Production International Ltd, the production arm of the Pyramid Saimira Group, has declared that it will make 52 films this year. Of this, the first ten will be Tamil films. The company will infuse around Rs 35 - 40 crore towards the production of these ten films, Mr P.S. Saminathan, Managing Director of the group. Production business, however, needs much higher level of creativity compared with other segments of the industry such as exhibition and distribution.
Ulip Investment Caps May Be Eased
The Insurance Regulatory and Development Authority (Irda) likely to permit up to 25 per cent investment to a single group of companies as part of the group exposure norms for unit-linked insurance plans (Ulips). Exposure to a single company or a fund is expected to be capped at 10 per cent of the policyholders fund or the total investment in a particular fund, whichever is less. At present, there are neither single nor group company exposure guidelines for Ulips. The insurance regulator is in the course of working out the exposure norms for Ulip to avoid focus of risk. Ulip is a life insurance product that gives the benefits of protection as well as flexibility in investment, offering higher returns than usual covers. The investment is denoted as units and is represented by the value that it has achieved, called the net asset value (NAV). The idea is to prevent any downside to the policyholders'' investment in such policies that likely to arise from excess investment in one company or a group of companies.
FII Activity On 07-04-2008
The FIIs on Monday stood as net buyer both in equity while the net seller in debt. The gross equity purchased was Rs3,375.10 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,010.50 Crore and gross debt sold stood at Rs114.90 Crore. Therefore, the net investment of equity reported was Rs1,364.60 Crore and net debt was (Rs114.90 Crore).
Monday, April 7, 2008
Raja Supports For Extension Of STPI Scheme
The Union Communications and IT Minister, Mr A. Raja, appear in support of the IT/BPO industry''s demand for an extension of the STPI scheme. The STPI gains are available till March 31, 2009. He has requested Mr Chidambaram that STPI incentives should be extended for another 10 years. I have requested him to work out some modalities to at least help the small investors may be those with investment up to Rs 100 crore. Earlier this week, a high-level group constituted by the Planning Commission had also urged the Government to address the tax issues faced by IT and BPO units. The Group had noted that the introduction of income-tax benefits for the IT units in special economic zones (SEZs) has created a problem for units in the Software Technology Parks of India (STPI) as the tax sops for STPI are scheduled to be phased out in March 2009.
Provident Funds, Insurers Likely To Get To Invest Overseas
The committee on financial sector reforms headed by Raghuram Rajan has come out with the recommendation that provident funds and insurance companies should be allowed to invest abroad. The committees''s draft report has also demanded the introduction of true auctions in securities, reduction in the auction and trading period, unified disclosure norms for multiple securities, use of call options for opening and closing price on exchanges and removal of regulatory restrictions against algorithmic trading.
Additionally, the panel recommended the creation of investment avenues, especially in foreign government securities, to relieve the pressure on inflows. The government and the Reserve Bank of India can always regulate these outflows depending on foreign exchange flows, it pointed out. In recent times, policymakers have been grappling with the rupee appreciation on account of large dollar inflows into the Indian markets.
The committee has said the central bank should refrain from intervening in the foreign exchange market to modulate the exchange rates. A large number of foreign investors in the government bond market will result in more liquidity and allow the domestic banks and institutions to focus on other areas. While arguing that fiscal discipline is essential to financial sector liberalization, the panel has stressed on capital account convertibility and discontinuation of the securities transaction tax.
The government and regulators should refrain from imposing a ban on trading. On budget eve last year, futures trading in commodities such as wheat was halted, citing inflation.
India has a strong equity market in place. But the environment needs to be made more conducive to private equity, venture capital and hedge funds. Mutual funds and pension funds (when they emerge) should play a more active role in governance. The corporate bond market is moribund and will have to be revived. Indian companies and investors need better access to international financial services and the Indian financial firms need to enhance their production of international financial services, the committee observed.
The committee said a number of financial sector reform initiatives could be pushed through within the existing legal framework and listed a dozen such initiatives. With debt markets gaining in importance, particularly due to the large infrastructure financing needs, the committee emphasized on linking the bonds, currency and derivatives (BCD) markets to improve efficiency and finally connecting them with the equity markets.
Additionally, the panel recommended the creation of investment avenues, especially in foreign government securities, to relieve the pressure on inflows. The government and the Reserve Bank of India can always regulate these outflows depending on foreign exchange flows, it pointed out. In recent times, policymakers have been grappling with the rupee appreciation on account of large dollar inflows into the Indian markets.
The committee has said the central bank should refrain from intervening in the foreign exchange market to modulate the exchange rates. A large number of foreign investors in the government bond market will result in more liquidity and allow the domestic banks and institutions to focus on other areas. While arguing that fiscal discipline is essential to financial sector liberalization, the panel has stressed on capital account convertibility and discontinuation of the securities transaction tax.
The government and regulators should refrain from imposing a ban on trading. On budget eve last year, futures trading in commodities such as wheat was halted, citing inflation.
India has a strong equity market in place. But the environment needs to be made more conducive to private equity, venture capital and hedge funds. Mutual funds and pension funds (when they emerge) should play a more active role in governance. The corporate bond market is moribund and will have to be revived. Indian companies and investors need better access to international financial services and the Indian financial firms need to enhance their production of international financial services, the committee observed.
The committee said a number of financial sector reform initiatives could be pushed through within the existing legal framework and listed a dozen such initiatives. With debt markets gaining in importance, particularly due to the large infrastructure financing needs, the committee emphasized on linking the bonds, currency and derivatives (BCD) markets to improve efficiency and finally connecting them with the equity markets.
JK Tyres to invest Rs 480 cr for capacity expansion
JK Tyres plans to invest Rs 480 crore this year to increase capacities of both its truck and passenger radial tyres, a senior company official said. Of the Rs 480 crore investment planned for this year, Rs 315 crore would be spent on augmenting its truck radial tyre capacity to 8 lakh tyres from the existing 3.67 lakh tyres and another Rs 120 crore on increasing the off-the-road (OTR) tyre capacity. The company also plans to invest the remaining in power plant and other projects, he said.
Truck radialisation was on an upswing in the country and that it would soon touch the 11-12 per cent levels. The company also has plans to invest another Rs 700 crore for capacity expansions by 2011.
Truck radialisation was on an upswing in the country and that it would soon touch the 11-12 per cent levels. The company also has plans to invest another Rs 700 crore for capacity expansions by 2011.
Friday, April 4, 2008
FII Activity On 03-04-2008
The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,898.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,918.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs20.20 Crore) and net debt was Rs0.00 Crore.
Govt Approval For IT Investment Regions
In a bid to push the growth of electronics hardware manufacturing in the country, the Government on April 4 cleared a policy to create information technology investment regions (ITIRs). These regions are specifically-notified zones that will comprise IT/BPOs, electronics hardware manufacturing units, public utilities, residential area, social infrastructure and administrative units. The Cabinet Committee on Economic Affairs on April 2 approved the policy for setting up such ITIRs, each having an area of at least 40 sq km. These regions will attract investment, create employment opportunities, propel economic growth and simultaneously reduce the pressure on existing urban centres. The ITIRs would be much larger than an IT SEZ. The minimum processing area will be 40 per cent of the total area of the ITIR.
Thursday, April 3, 2008
FII Activity On 02-April-2008
The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs2,661.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,849.60 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs1,188.20 Crore) and net debt was Rs0.00 Crore.
Mahindra & Mahindra & ICICI Venture Consortium Inks Agreement To Acquire Metalcastello S.P.A.
Mahindra & Mahindra Ltd has informed that a consortium of Mahindra & Mahindra Ltd (M&M) and ICICI Venture Funds Managements Ltd, Indias leading PE player with AUM of over $ 2 billion, on April 02, 2008 has signed a definitive agreement agreeing to acquire 100% stake in Metalcastello S.p.A, a leading Italian independent gear manufacturer. The transaction is subject to receipt of necessary approvals.
Mr. Hemant Luthra, President, Systech, said Mahindra Forgings (MFL) has already created one of the leading forging Companies in the world. Together with ICICI Venture we expect Metalcastello S.p.A, an outstanding Company with a 50 year history of serving its customers profitably, to help replicate in the gear vertical what MFL has achieved in the forgings space. The customer base of both MFL and Metalcastello is complimentary and will enhance the synergies that we are already harvesting. Consistent with Mahindra Systechs art to part expertise, Metalcastello S.p.A perfectly compliments this capability in the auto component space and will add immense value to its stakeholders.
Mahindra Group holds majority stake in Rajkot based gear manufacturing Company - Mahindra SAR Transmission Pvt Ltd and this acquisition augments Systechs ability to serve its customers from multiple locations i.e. Italy, UK, Germany and India for their auto component needs. It also strengthens the Mahindra Groups position as a leading auto component player in the global market.
Mr. Gabriele Pierotti, CEO of Metalcastello said Metalcastello is a Company that has been part of our family for last five decades and I recognize that in order to facilitate its continued growth it needs a strong strategic partner. Having interacted with M&M over the last two years has given me great comfort that both the historical traditions and the future growth prospects will be protected. I am delighted to partner with M&M in taking the first steps to create what should become one of the leading Gear Companies of the world that can marry our technology with M&Ms low cost manufacturing excellence
Mr. Anand Mahindra, Vice Chairman of Mahindra & Mahindra group (M&M), said I am delighted to welcome Gabriele Pierotti and his management team into the Mahindra family and look forward to harnessing their expertise in building Systechs Gear vertical to match that of MFL. Mahindra Systech has the mandate to build globally competitive businesses in selected verticals and this acquisition greatly enhances our capability to do so.
Metalcastello, based near Bologna has revenues of around $100 million The Company was originally founded in 1952 and is among the top gear manufacturers in Europe, focused primarily on the Off-Highway segment. The Companys product portfolio includes complex gears & shafts for use in vehicle transmissions and drivelines. Its Customer portfolio includes most of the global OEMs in the tractor, off highway & construction equipment space. Currently, financial investors hold 84.7% of which 66.5% held by private equity fund Development Capital, advised by Italian firm Alto Partners and top management holds 15.3% in Metalcastello.
The Company will benefit from the continued presence of the erstwhile management of Metalcastello S.p.A in further building the business of Metalcastello. Mr. Gabriele Pierotti will continue to hold the position of CEO. He has the benefit of a rich experience in the gears industry for over 30 years.
Mr. Hemant Luthra, President, Systech, said Mahindra Forgings (MFL) has already created one of the leading forging Companies in the world. Together with ICICI Venture we expect Metalcastello S.p.A, an outstanding Company with a 50 year history of serving its customers profitably, to help replicate in the gear vertical what MFL has achieved in the forgings space. The customer base of both MFL and Metalcastello is complimentary and will enhance the synergies that we are already harvesting. Consistent with Mahindra Systechs art to part expertise, Metalcastello S.p.A perfectly compliments this capability in the auto component space and will add immense value to its stakeholders.
Mahindra Group holds majority stake in Rajkot based gear manufacturing Company - Mahindra SAR Transmission Pvt Ltd and this acquisition augments Systechs ability to serve its customers from multiple locations i.e. Italy, UK, Germany and India for their auto component needs. It also strengthens the Mahindra Groups position as a leading auto component player in the global market.
Mr. Gabriele Pierotti, CEO of Metalcastello said Metalcastello is a Company that has been part of our family for last five decades and I recognize that in order to facilitate its continued growth it needs a strong strategic partner. Having interacted with M&M over the last two years has given me great comfort that both the historical traditions and the future growth prospects will be protected. I am delighted to partner with M&M in taking the first steps to create what should become one of the leading Gear Companies of the world that can marry our technology with M&Ms low cost manufacturing excellence
Mr. Anand Mahindra, Vice Chairman of Mahindra & Mahindra group (M&M), said I am delighted to welcome Gabriele Pierotti and his management team into the Mahindra family and look forward to harnessing their expertise in building Systechs Gear vertical to match that of MFL. Mahindra Systech has the mandate to build globally competitive businesses in selected verticals and this acquisition greatly enhances our capability to do so.
Metalcastello, based near Bologna has revenues of around $100 million The Company was originally founded in 1952 and is among the top gear manufacturers in Europe, focused primarily on the Off-Highway segment. The Companys product portfolio includes complex gears & shafts for use in vehicle transmissions and drivelines. Its Customer portfolio includes most of the global OEMs in the tractor, off highway & construction equipment space. Currently, financial investors hold 84.7% of which 66.5% held by private equity fund Development Capital, advised by Italian firm Alto Partners and top management holds 15.3% in Metalcastello.
The Company will benefit from the continued presence of the erstwhile management of Metalcastello S.p.A in further building the business of Metalcastello. Mr. Gabriele Pierotti will continue to hold the position of CEO. He has the benefit of a rich experience in the gears industry for over 30 years.
Bank Of Maharashtra To Enter Into Corporate Agency Arrangement
New Delhi: Bank of Maharashtra has decided to enter into corporate agency arrangement with Export Credit Guarantee Corporation of India (ECGC) for distribution of ECGC policies. The policies offer insurance cover to the exporters. The company made this announcement during the trading hours today, 02 April 2008.
Wednesday, April 2, 2008
FII Activity On 02-04-2008
The FIIs on Tuesday stood as net buyer in equity. The gross equity purchased was Rs2,964.20 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,953.40 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs10.80 Crore and net debt was Rs30.70 Crore.
IVRCL Infrastructures Secures Orders Valued Rs 484 Crores
IVRCL Infrastructures & Projects Ltd has announced that the Buildings & Industrial Structure (B & IS) Division has bagged the orders of the value of Rs 484 Crores as detailed hereunder:
1. Scope of Work:- Construction of various Buildings varying from G+4 to G+25, approximate Construction Area of 40 Lacs Sq. ft, out of total Integrated Township of approximate 1.2 Crore Sq. ft construction area in 237 acres of land located on the Bank of River Ganges at New Bata Road, Batanagar, Mahestala, Kolkata, to be completed in 42 months
Client: River Bank Developers Pvt Ltd, Kolkata
Value : Rs 250 Crores
2. Scope of Work:- Mass housing in Baprola, Delhi for Economically Weaker Sections consisting of 5552 Houses (Composite Work) with Cost Effective Technologies at Boprola, Delhi, aggregating to 18.00 lakh sq. ft. of residential space.
Client: Delhi State Industrial and Infrastructure Development Corporation Ltd
Value : Rs 114 Crores
3. Scope of Work:- Construction of Civil & structural works for Wire Mill & Bar Mill for 3 Million Ton per annum capacity Steel Plant
Client: Jindal Steel & Power Ltd, Patratu, Jharkhand
Value : Rs 55 Crores
4. Scope of Work:- Civil, Structural etc work of auxiliary buildings (excluding those covered in Power Block 1 & Power Block 2) for 2x500MW Unit # 1 and 2 at Mejia-B TPS, West Bengal
Client: Bharat Heavy Electricals Ltd, Power Sector Eastern Region, DJ-9/1, Salt Lake City, Kolkata
Value : Rs 40 Crores
5. Scope of Work:- Other Miscellaneous works
Client: -
Value : Rs 25 Crores.
1. Scope of Work:- Construction of various Buildings varying from G+4 to G+25, approximate Construction Area of 40 Lacs Sq. ft, out of total Integrated Township of approximate 1.2 Crore Sq. ft construction area in 237 acres of land located on the Bank of River Ganges at New Bata Road, Batanagar, Mahestala, Kolkata, to be completed in 42 months
Client: River Bank Developers Pvt Ltd, Kolkata
Value : Rs 250 Crores
2. Scope of Work:- Mass housing in Baprola, Delhi for Economically Weaker Sections consisting of 5552 Houses (Composite Work) with Cost Effective Technologies at Boprola, Delhi, aggregating to 18.00 lakh sq. ft. of residential space.
Client: Delhi State Industrial and Infrastructure Development Corporation Ltd
Value : Rs 114 Crores
3. Scope of Work:- Construction of Civil & structural works for Wire Mill & Bar Mill for 3 Million Ton per annum capacity Steel Plant
Client: Jindal Steel & Power Ltd, Patratu, Jharkhand
Value : Rs 55 Crores
4. Scope of Work:- Civil, Structural etc work of auxiliary buildings (excluding those covered in Power Block 1 & Power Block 2) for 2x500MW Unit # 1 and 2 at Mejia-B TPS, West Bengal
Client: Bharat Heavy Electricals Ltd, Power Sector Eastern Region, DJ-9/1, Salt Lake City, Kolkata
Value : Rs 40 Crores
5. Scope of Work:- Other Miscellaneous works
Client: -
Value : Rs 25 Crores.
RFCL Announces Acquisition Of German Firm
New Delhi: RFCL Ltd, an ICICI Venture company, has made its first global acquisition in the space of veterinary health care through a share purchase agreement with Marsung & Co Ltd A/S for its Germany-based subsidiary Bremer Pharma GmbH. Bremer Pharma has 803 global registrations across Europe, West Asia, Asia and Africa. The agreement is for transfer of all key people, assets, brands, all contracts including exports. The acquisition follows the buyout of Alved in January. RFCL''s animal healthcare business under Vetnes is expected to achieve a turnover of Rs 90 crore for 2008. Combined with sales revenue of Bremer Pharma and Alved, RFCL''s veterinary product portfolio will be in excess of Rs 160 crore.
Emaar MGF Ties-Up With Marriott To Develop Hotels In India
Hyderabad: Emaar MGF, real estate developer, has partnered with Marriott International Inc to design, construct and equip luxury-branded JW Marriott Hotels with total investment of over $400 million. The hotel projects are likely to be completed by 2010 end and will come up in New Delhi, Hyderabad, Kolkata and a Courtyard by Marriott Hotel in Amritsar.
As part of the agreement, Emaar will be the owner and developer of the proposed hotels and Marriott shall provide advisory and management services for the planning, design, construction and operations, a Marriott release said in hyderabad. Marriott International President and Managing Director Ed Fuller said, Emaar MGF has the vision, the vitality and sense of the market that enables it to develop outstanding hotels that appeal to a variety of current and emerging customer segments.
As part of the agreement, Emaar will be the owner and developer of the proposed hotels and Marriott shall provide advisory and management services for the planning, design, construction and operations, a Marriott release said in hyderabad. Marriott International President and Managing Director Ed Fuller said, Emaar MGF has the vision, the vitality and sense of the market that enables it to develop outstanding hotels that appeal to a variety of current and emerging customer segments.
Steel Strips Wheels Receives Rs110.00 Crores Export Order From Renault, France
Steel Strips Wheels Ltd has informed that Renault, France, one of the largest manufacturer of cars in Europe and the leading manufacturer of light commercial vehicles, has given an export order to the Company for supply of approx 1 million Steel Wheel Rims over 5 years, valued at approx Rs 110.00 Crores. This export order is for one of their new vehicles to be produced in Europe.
The Company expects its EXPORTS to grow over 200% in FY 08-09 and hopes to cross Export of 4,25,000 Wheels Rims in FY 08-09. During the quarter ended March 31, 2008, the Company has registered grow 24.27% in sales of Wheels Rims as against the sale of wheels rims in the quarter ended March 31, 2007.
The Company expects its EXPORTS to grow over 200% in FY 08-09 and hopes to cross Export of 4,25,000 Wheels Rims in FY 08-09. During the quarter ended March 31, 2008, the Company has registered grow 24.27% in sales of Wheels Rims as against the sale of wheels rims in the quarter ended March 31, 2007.
Tuesday, April 1, 2008
Gujarat Ambuja To Commission Soybean Plant In MP
Mumbai/ Ahmedabad: Ahmedabad-based agro-processing company, Gujarat Ambuja Exports Limited ( GAEL), will be putting in around Rs 85 crore this year in two different ventures. Guj Ambuja will commission a 1,200-tonne per day (tpd) soybean processing plant at Mandsaur in Madhya Pradesh at an investment of Rs 50 crore. GAEL already has soya processing plants at Kadi and Nani Kadi in Gujarat, at Pithampur in MP and at Kanheri in Maharashtra. The new plant is expected to go on stream in October-November 2008. With this, the company''s soya processing capacity is expected to touch 4,700 tpd.
Under the mandi venture, the company is looking at sourcing oilseeds and other products from farmers. As many as 8 mandis have already been established and 20 more are in the process of being set up in Madhya Pradesh, Maharashtra and Rajasthan. Around Rs 35 crore is expected to be invested in the venture. Of late, the company started production at its new maize processing plant at Sitarganj in Uttarakhand, which has a capacity of 500 tonne per day. The plant has been set up with an investment of Rs 60 crore through internal accruals.
Under the mandi venture, the company is looking at sourcing oilseeds and other products from farmers. As many as 8 mandis have already been established and 20 more are in the process of being set up in Madhya Pradesh, Maharashtra and Rajasthan. Around Rs 35 crore is expected to be invested in the venture. Of late, the company started production at its new maize processing plant at Sitarganj in Uttarakhand, which has a capacity of 500 tonne per day. The plant has been set up with an investment of Rs 60 crore through internal accruals.
CDC Software Completes Acquisition Of Majority Stake In Leading
CDC Software, a wholly owned subsidiary of CDC Corporation and a provider of industry-specific enterprise software applications and business services, today announced it completed its acquisition of a 51 percent stake in Integrated Solutions Limited, a Hong Kong-based vendor of ERP systems designed for small and medium-sized discrete manufacturers in China. With this investment, along with our award-winning solutions, services, extensive infrastructure and deep expertise of the China market, we are now strongly positioned to more fully exploit the significant opportunities in the largest manufacturing market in the world, said Peter Yip, executive chairman of CDC Software.
We plan to leverage ISL''s impressive track record of hundreds of successful deployments in southern China as we expand our market presence throughout the country. With our highly-popular Ross Enterprise applications for process manufacturers and the addition of ISL''s applications for discrete manufacturers, we now have solutions for the entire industry. A top priority for us will be to expand rapidly in China, particularly targeting the millions of small and medium-size manufacturers with our complementary software solutions. As previously announced, ISL joins CDC Software''s successful Franchise Partner Program that includes Franchise Partners located in India, Argentina, Spain and Mexico. Under this program, CDC Software establishes strategic relationships with partners in selected geographies through majority control, as well as minority investments.
We plan to leverage ISL''s impressive track record of hundreds of successful deployments in southern China as we expand our market presence throughout the country. With our highly-popular Ross Enterprise applications for process manufacturers and the addition of ISL''s applications for discrete manufacturers, we now have solutions for the entire industry. A top priority for us will be to expand rapidly in China, particularly targeting the millions of small and medium-size manufacturers with our complementary software solutions. As previously announced, ISL joins CDC Software''s successful Franchise Partner Program that includes Franchise Partners located in India, Argentina, Spain and Mexico. Under this program, CDC Software establishes strategic relationships with partners in selected geographies through majority control, as well as minority investments.
FII Activity On 31-03-2008
The FIIs on Monday stood as net seller both in equity as well as in debt. The gross equity purchased was Rs3,235.90 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,350.10 Crore and gross debt sold stood at Rs30.70 Crore. Therefore, the net investment of equity reported was (Rs114.30 Crore) and net debt was (Rs30.70 Crore).
Provogue India - Triangle India Fund To Invest Rs 457 Crores In Provogue (India) Ltd''s Subsidiary
Provogue India Ltd has informed that Triangle India Real Estate Fund LLC, co-promoted by Old Mutual Investment Group Property Investment (OMIGPI) and ICS Realty has entered into an agreement to invest Rs 457 Crores (apprx US $114 million) for a 27% stake in a step down subsidiary of Prozone Enterprises Pvt Ltd (Prozone-Liberty). This downstream subsidiary of Prozone Liberty holds stake in four projects being developed in Aurangabad, Indore, Nagpur and Jaipur covering over approximately 1.6 million sq.ft.
Prozone Enterprise Pvt Ltd (subsidiary of Provogue (India) Ltd) is a joint venture between Provogue (India) Ltd and Liberty International PLC which is a UK FTSE 100 listed property company, with assets of over GBP 10.8 Billion of which regional shopping centers account for over 85% of the portfolio. Liberty owns 9 of the top 21 regional mixed use centers in the UK and are amongst the 20 largest REITs in the world.
Prozone-Liberty has set up six international and domestic subsidiaries as SPVs for
carrying on its business viz. Prozone Liberty International Ltd, Prozone International
Ltd, Prozone Overseas Pte Ltd, Alliance Mall Developers Co Pvt Ltd, Royal Mall Pvt Ltd and Standard Mall Pvt Ltd.
The downstream subsidiary of Prozone-Liberty has acquired 5% additional stake in its Aurangabad Project and now holds a majority stake in it.
Prozone Enterprise Pvt Ltd (subsidiary of Provogue (India) Ltd) is a joint venture between Provogue (India) Ltd and Liberty International PLC which is a UK FTSE 100 listed property company, with assets of over GBP 10.8 Billion of which regional shopping centers account for over 85% of the portfolio. Liberty owns 9 of the top 21 regional mixed use centers in the UK and are amongst the 20 largest REITs in the world.
Prozone-Liberty has set up six international and domestic subsidiaries as SPVs for
carrying on its business viz. Prozone Liberty International Ltd, Prozone International
Ltd, Prozone Overseas Pte Ltd, Alliance Mall Developers Co Pvt Ltd, Royal Mall Pvt Ltd and Standard Mall Pvt Ltd.
The downstream subsidiary of Prozone-Liberty has acquired 5% additional stake in its Aurangabad Project and now holds a majority stake in it.
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