Acquirers Intend To Make An Open Offer

Chartered Capital and Investment Ltd (Manager to the Offer), on behalf of Mr Nandakishore Divate and Mr K Chandramouli (Acquirers), has issued this Public Announcement (PA) to the Shareholders of Mafatlal Finance Company Ltd (Target Company), pursuant to Regulations 10 & 12 and as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as SEBI (SAST) Regulations, 1997) and subsequent amendments thereto.
The Offer:

The Acquirers intend to make an Open Offer to the shareholders of Target Company to acquire 88,74,480 equity shares of Rs 10/- each representing 20% of the voting capital of Target Company at a price of Re 1/- (Rupee One Only) per fully paid up equity share, payable in cash subject to the terms and conditions mentioned in the PA.

Schedule of Activities:
Specified Date - June 20, 2008
Date of Opening of the Offer - July 18, 2008
Date of Closing of the Offer - August 06, 2008

FIIs Stood As Net Seller In Equity

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs3,264.4 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,998.3 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs(733.9) Crore and net debt was Rs0.00 Crore.

FIIs Wednesday Stood As Net Seller In Equity

The FIIs Wednesday stood as net seller in equity. The gross equity purchased was Rs2,338.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,692.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs(354.20) Crore and net debt was Rs0.00 Crore.

Fiis Stood As Net Seller In Equity And Debt

The FIIs on Tuesday stood as net seller in equity and debt. The gross equity purchased was Rs2,144.800 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,259.90 Crore and gross debt sold stood at Rs14.90 Crore. Therefore, the net investment of equity reported was (Rs115.00 Crore) and net debt was (Rs14.90 Crore).

Joint Venture Of HPCL And Mittal Energy Ltd

State-run Bharat Heavy Electricals Ltd (BHEL) has received a Rs 1,150 crore turnkey contract for setting up an energy-efficient 153-MW captive power plant at Bhatinda in Punjab. The Rs 1,150 -crore order has been placed on the company by HMEL, a joint venture of HPCL and Mittal Energy Ltd.

BHEL will be involved in designing, engineering, manufacturing, supply, erection and commissioning work of the captive power plant. The 153-MW gas turbine-based combined cycle power plant to be commissioned in a period of 30 months would meet the power and process steam requirement of the upcoming refinery. The equipments for the project would be supplied by BHEL''s plants in Tiruchi, Ranipet, Bhopal, Jhansi and the Electronics Division in Bangalore.

Fiis Stood As Net Seller In Equity And Debt

The FIIs on Monday stood as net seller in equity and debt. The gross equity purchased was Rs2,350.70.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,351.200 Crore and gross debt sold stood at Rs130.10 Crore. Therefore, the net investment of equity reported was (Rs500.50 Crore) and net debt was (Rs130.10 Crore).

FII Stood As Net Seller In Equity

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs2,226.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,776.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs550.70) Crore and net debt was Rs0.00 Crore.

Fiis Stood As Net Seller In Equity And In Debt Also

The FIIs Wednesday stood as net seller in equity and in debt also. The gross equity purchased was Rs3,119.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,439.50 Crore and gross debt sold stood at Rs99.20 Crore. Therefore, the net investment of equity reported was (Rs319.80)Crore and net debt was (Rs99.20)Crore.

FII Activity on 20-05-2008

The FIIs Tuesday stood as net buyer in equity and in debt also. The gross equity purchased was Rs2,882.70 Crore and the gross debt purchased was Rs4.90 Crore while the gross equity sold stood at Rs2,825.60 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs57.10 Crore and net debt was Rs4.90 Crore.

BSEL Infra To Infused Rs 18,000cr In Malaysian Project

Mumbai-based BSEL Infrastructure Realty Ltd said it has inked a memorandum of understanding with the Government of Malaysia''s statutory body Iskandar Regional Development Authority for development of the proposed Iskandar metropolis. BSEL Infra has made an investment of Rs 18,000 crore, to be spread over 12 years, in the project. The infusion in phase I will be Rs 2,500 crore. BSEL plans to develop 70 million sq ft, comprising 80 per cent residential and the rest commercial, in three phases with 10 million sq ft in phase I. BSEL''s subsidiary in the UAE was building a 5,000-apartment complex and bookings for units had started.

Fiis On Friday Stood As Net Buyer In Equity

The FIIs on Friday stood as net buyer in equity. The gross equity purchased was Rs3135.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,405.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs729.900 Crore and net debt was Rs 0.00.

ICICI Bank Planning To Raise Three Billion Dollars From Its Two Funds

ICICI Venture, the private equity fund subsidiary of the ICICI Bank, is planning to raise about three billion dollars from its two funds, including a real estate fund. The equity fund of 1.5 billion dollars, will make investment in the knowledge sector and domestic consumption led sectors like retail, services among others. The real estate fund of similar size will infuse in both residential and commercial properties in the country.

Nahar To Invest Rs 200 Cr For Setup New Plant

Chandigarh: Integrated textile major Nahar Group has decided to set up a new plant for manufacturing Bi-axially Oriented Polypropylene film (BOPP) at Mandideep in Madhya Pradesh with an estimated investment of Rs 200 crore.

"We have decided to invest Rs 200 crore for setting up a new plant in Bhopal which will make raw material for the packaging industry," Nahar Investments and Holdings Director Dinesh Oswal told PTI.

The company has also proposed to carry out this film project under company's new name of Nahar Poly Films Limited, he said.

The board of directors of the company has decided in its board meeting to change the name of Nahar Investments and Holdings Limited to Nahar Poly Films Limited.

To fund this project, the company would raise money through a combination of internal accruals and loans from banks, he added.

The total manufacturing capacity of the plant has been fixed at 30,000 tons per annum, he said.

Hoping to commission the manufacturing facility within one year, the company expects to achieve a turnover of Rs 300-400 crore within next two years.

"We feel that we will be able to have a turnover of Rs 300-400 crore from this new project," he said.

Yash Birla Group May Cut Number Of Auto Units

Mumbai: The Rs 2,300-croreYash Birla group is considering rationalising the number of manufacturing units of its auto and engineering business to 3-4 from the current 7, in order to gain from the economies of scale, Praveen Gupta, chief executive of the sector, said.

The auto and engineering business comprises Birla Perucchini, Birla Precision, Dagger Forst Tools and Indian Tool Manufacturers (ITM).

The move could logically free up real estate for commercial exploitation, though Gupta refused to confirm this.

The manufacturing line of Dagger Forst has been shifted to Ambarnath from Thane. Gupta didn’t comment on the commercial exploitation plans of the Dagger Forst plot.

Birla Precision (earlier known as Birla Kennametal) and Dagger Forst are listed. ITM was originally a division of listed Zenith Birla, now spun into a subsidiary. In Birla Perucchini, the group has bought out its foreign partner Perucchini for an undisclosed sum, making it its wholly owned subsidiary.

The group runs four sites in Aurangabad, and one each in Nasik, Gandhidham and Ambarnath. “For a group of our size, it doesn’t make sense in having so many production sites. Logically it makes sense to move everything to Aurangabad since we have four contiguous plants there. So, one of our first moves after the restructuring process would be to rationalise the number of sites,” Gupta said.

As part of its restructuring exercise, the Yash Birla group has appointed Ernst & Young to advise it on having an auto and engineering business entity. “As far as business is concerned, we are already operating as a single unit. Legally, we hope to finish all processes like deciding swap ratios and merging entities by March 31, 2009. There could be one or maximum two listed entities post that,” Gupta said.

The auto and engineering business of the group is worth about Rs 250 crore, with ITM, being the flagship, contributing Rs 80 crore. Rests are smaller entities with revenues in the range of Rs 40-50 crore. Operating margins range from 15% to 45%.

Gupta said the group plans to invest Rs 100 crore this year in upping capacity, which could see company tapping external source of funds leading to equity dilution. In the recent past, Dagger Forst had raised Rs 18 crore in a follow-on public issue.

Gupta said the group would look at having its first overseas plant in China, which could entail an investment of Rs 25-30 crore.

Jain Irrigation Systems Investing Rs 550 Crore In Jalgaon

Jain Irrigation Systems Ltd has inked an MoU with the Maharashtra Government for two mega projects. The company will be investing Rs 550 crore in Jalgaon. The investment will cover additional production of micro irrigation equipment, fruit and vegetable processing, tissue culture and other allied agricultural activities.

Private Equity Investments To Hit 16-Billion Dollar Mark This Year

New Delhi: Strong growth fundamentals of the country will help private equity investments to hit 16-billion dollar mark this year and India is likely to remain a popular destination for the next few years, a latest report says.

"PE investments might be in the $14-16 billion range for the calendar year 2008 and will remain a popular destination for the next two-three years along with China Brazil and Vietnam, Four-S Services, a provider of research, financial consulting and business content services said in its latest report.

In the first two months of this year, as many as 84 private equity or venture capital deals worth nearly $4.1 billion have already been announced, the report added.

Though investments in the private equity arena are flowing in, the year 2008, it would be little 'cautious,' because of the downturn in the US economy, appreciating rupee, high oil prices among others, Four-S Services said.

However, the global credit crunch would not impact India much, as the major portion of the over-eight per cent growth of the country would be driven by domestic demand.

The PE investments would get a further fillip from the reasonable valuations that are prevailing after the 20-25 per cent market correction so far this year.

The Indian markets are expected to witness a further correction before investments picks up. "The investment momentum is expected to rise in the second half of 2008, that is post July," the report added.

The report however pointed out that some of the factors that could pose challenges to the PE investment sector include lower growth rates for export-based industries due to strong rupee, high oil prices which is one of the reason behind high inflation, potential capital gains tax on external funds routed through Mauritius.

FIIs On Tuesday Stood As Net Seller In Equity

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs2,339 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,464.40 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs125.40 Crore) and net debt was Rs0.00 Crore.

Graphite India To Expand Durgapur Plant

Graphite India Ltd, the largest manufacturer of electrodes in the country, is planning to augment graphite electrode capacity by 10,500 tonnes at a cost of Rs 187.50 crore at its Durgapur plant.

At present, the company has a total electrode capacity of 78,000 tonnes - 60,000 tonnes in the country and 18,000 tonnes in Germany.The company, with a decent cash flow, had sold some surplus property in Bangalore in 2006 for about Rs 100 crore and invested the money in 3-year bonds, which would mature next year.

FII Activity On 12-05-2008

The FIIs on Monday stood as net seller in equity. The gross equity purchased was Rs3,368.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,739.20 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs370.50 Crore) and net debt was Rs0.00 Crore.

Bhel To Invest In Rs 236 Crore In BHVP

Bharat Heavy Electricals Limited (Bhel) officially took over Visakhapatnam-based Bharat Heavy Plates and Vessels (BHPV) here on May 10. BHPV was reporting losses over the last decade and was under the Board of Industrial and Financial Reconstruction (BIFR).

According to the source, BHPV could be developed as a dedicated centre for industrial boilers, ensuring better delivery. Though the current cost structure of BHPV is similar to Bhel, costs were expected to come down due to factors like increased volumes, better financial capability leading to lower working capital borrowing costs.

Bhel will put in Rs 236 crore over the next three years apart from induction of experienced manpower and required technology. BHPV''s turnover is likely to cross Rs 1,000 crore in five years. Around 1,332 of the total 1,512 employees of BHPV (balance unqualified would be redeployed) would be continued in employment. According to the source, the 125Mw plant would cost about Rs 950 crore, of which Bhel would contribute Rs 420 crore and APGenco Rs 530 crore.

FII Activity On 09-05-2008

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs2,663 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,065.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs402.50 Crore) and net debt was (Rs0.00 Crore).

FII Activity on 08-05-2008

The FIIs on 7 May 2008 stood as net seller in equity. The gross equity purchased was Rs3,099.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,827.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs728.80 Crore) and net debt was Rs0.00 Crore.

Indiabulls Real Estate - Acquisition Of Shares

Indiabulls Real Estate Ltd has informed that in continuation of the intimation sent by the Indiabulls Real Estate Ltd (Company) on February 28, 2008 and May 07, 2008 in relation to the proposed investment and / or purchase of up to 100% of the ordinary shares in Dev Property Development Plc. (DPD Shares) an Isle of Man registered Company listed on the London Stock Exchanges AIM (DPD), by issuance of new ordinary shares of the Company (New IBREL Shares) represented by Global Depository Receipts (GDRs) listed on the Luxembourg Stock Exchanges Euro MTF. The proposed investment and/or purchase of the DPD Shares by issuance of GDRs was to be implemented by way of a court approved scheme of arrangement under section 152 of the Isle of Man Companies Act 1931 (Scheme).
Further the Company has informed that as informed earlier, the relevant court under the Isle of Man Companies Act 1931 has sanctioned the Scheme on May 07, 2008 and accordingly approved the acquisition of 100% ordinary shares of DPD by the Company.
The Scheme has become effective on May 08, 2008.

Ibulls Real Estate Ltd Informed That Continuation Of The Intimation

Indiabulls Real Estate Ltd has informed that in continuation of the intimation sent by the Indiabulls Real Estate Ltd (Company) on February 28, 2008 in relation to the proposed investment and / or purchase of up to 100% of the ordinary shares in Dev Property Development Plc. (DPD Shares) an Isle of Man registered Company listed on the London Stock Exchanges AIM (DPD), by issuance of new ordinary shares of the Company (New IBREL Shares) represented by Global Depository Receipts (GDRs) listed on the Luxembourg Stock Exchanges Euro MTF. The proposed investment and/or purchase of the DPD Shares by issuance of GDRs was to be implemented by way of a court approved scheme of arrangement under section 152 of the Isle of Man Companies Act 1931 (Scheme).

The relevant court under the Isle of Man Companies Act 1931 has sanctioned the Scheme on May 07, 2008 and accordingly approved the acquisition of 100% ordinary shares of DPD by the Company.

Further the Company has informed that, the finalisation of the said acquisition shall be completed by: (i) cancellation of the 138,000,000 ordinary shares of DPD (ii) issue of 138,000,000 new DPD shares to the Company and (iii) issue of 0.12091 GDR to the shareholders of DPD for each DPD share held as at 6:00 P.M. on May 07, 2008 in accordance with the terms of the Scheme. The Scheme is expected to become effective on May 08, 2008 and the settlement of all consideration will occur within 14 days of that date.

The announcement being made by DPD in UK on May 07, 2008.

Tata Steel With Brazilian Mining Giant Vale For Infusion Of Rs1,555cr

Tata Steel along with Brazilian mining giant Vale and other joint venture partners, is attempting a massive expansion of the Carborough Downs coal mine near Moranbah in Central Queensland, Australia, for an infusion of about Rs 1,555 crore. Carborough Downs is an underground mine operated by Carborough Downs Coal Management. Vale and its joint venture partners, comprising Tata Steel, Nippon Steel Corporation, Posco, JFE Steel and JFE Shoji, own around 80 per cent of the mine. Tata Steel, Nippon Steel and Posco own 5 per cent each in the Carborough Downs coal mine, while JFE Steel and JFE Shoji individually hold 2.5 per cent.

FII Stood As Net Seller In Equity

The FIIs on 7 May 2008 stood as net seller in equity. The gross equity purchased was Rs3,099.00 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,827.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs728.80 Crore) and net debt was Rs0.00 Crore.

Nalco Mulls To Set Up Rs 14000cr Unit In Orissa

National Aluminium Company (Nalco) is exploring the possibility of opening a greenfield aluminium smelter and captive power plant near Jharsuguda, western Orissa at an investment of more than Rs 14,000 crore. The capacity of the proposed smelter is estimated at 5 lakh tonnes per annum with a captive generation facility of 1,250 mw. Engineer''s India (EIL), which has been named the consultant, has found the project technically feasible.

FIIs: Net Seller In Equity While Net Buyer In Debt

The FIIs on Tuesday stood as net seller in equity while the net buyer in debt. The gross equity purchased was Rs2,704.90 Crore and the gross debt purchased was Rs139.90 Crore while the gross equity sold stood at Rs3,011.50Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs306.70 Crore) and net debt was Rs139.90 Crore.

Kesoram Industries Planned Rs 840 Crore At Its Uttarakhand Tyre Complex

BK Birla-promoted Kesoram Industries has planned Rs 840 crore expansion programme at its Uttarakhand tyre complex. The plan comprises a radial tyre plant with 100 tonnes-a-day capacity at a capital expenditure of Rs 495 crore and another bias tyre plant for trucks with farm sector equipment having a capacity of 125 tonnes a day and involving an investment of Rs 345 crore. Kesoram is already in the process of opening a greenfield project for bias tyres in Uttarakhand at an investment of Rs 750 crore. The first phase of commercial production was hoped to go onstream by mid-May 2008 and the last phase by December 2009. The company will raise the capacity of its Vasavadatta plant in Karnataka to 5.7 million tonnes, thereby taking its total cement capacity to 7 million tonnes. Kesoram Industries has two cement units, Vasavadatta Cement at Sedam, Karnataka, and Kesoram Cement at Basantnagar, Andhra Pradesh.

Fiis Stood As Net Buyer In Equity

The FIIs on Monday stood as net buyer in equity while the net seller in debt. The gross equity purchased was Rs3,624.50 Crore and the gross debt purchased was Rs7.60 Crore while the gross equity sold stood at Rs2,904.60Crore and gross debt sold stood at Rs19.90 Crore. Therefore, the net investment of equity reported was Rs720.00 Crore and net debt was (Rs12.30 Crore).

Domestic IT And Ites Expected To Cross Rs 2,00,000 Crore Mark In 2012

The India domestic IT and ITeS market is expected to cross the Rs 2,00,000 crore mark in 2012 compared to Rs 90,014 crore recorded in 2007. This translates into a CAGR of 18.4 per cent in the five year period, according to a new report by IDC India. Together with IT and ITeS exports revenue of Rs 3,20,278 crore, the total IT and ITeS industry size is expected to grow Rs 5,29,976 crore by 2012, representing a CAGR of 16.5 per cent. Kapil Dev Singh, country manager, IDC India, said, "The domestic IT and ITeS industry CAGR of 18.4 per cent (during 2008-12) is expected on the back of a robust growth of the past five years (2003-2007).

BG India Mulls To Pump In $1 Billion

BG India, part of the British Gas group, mulls to pump in $1 billion (about Rs 4,000 crore) in the exploration business in the next two to three years. British Gas has funded the geosciences lab at Indian Institute of Technology (IIT) in Mumbai to facilitate high quality research in the field of oil exploration. BG India is in charge for managing and developing the upstream and downstream interests of the BG Group in India. It is the largest investing foreign company in the Indian oil and gas sector, having infused approximately $900 million to date. India requires an investment of nearly $300 billion for exploration of hydrocarbon.

Fiis On Friday Stood As Net Seller In Equity

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs3,418.30 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,503 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs84.70 Crore) and net debt was Rs0.00 Crore.

Goldstone Infratech Informed That Company Is Entering Into Major Joint

Goldstone Infratech Ltd has informed that the Company is entering into a major Joint Venture with Dr. June Min, the founder of TF SolarPower Pvt Ltd and Jusung Engineering Ltd., an equipment supplier in Korea to set up solar panel fab in the FAB CITY, Hyderabad.

In this connection, the Company proposed Press Release dated April 28, 2008 titled Goldstone Infratech announced a JV with TF SolarPower and Jusung Engineering for solar fab; JV to set up Rs 2,800 cr solar panel fab in Fab city.

No Slackening In $700 B Investment Pipeline: ICICI CEO

ICICI Bank managing director and CEO K.V. Kamath has begun his term as the CII president on an “economic optimistic” note.

He said India is likely to cross the 8% growth rate this year, and touch 10% in the medium term. Kamath spoke to Nivedita Mookerji on India’s economic outlook, India Inc’s role in controlling inflation and derivatives losses, among other issues. Excerpts:

More India business stories

In your inaugural speech as CII president, you said that India is on its way to achieve 10% growth. What are the hurdles and challenges on the way?

The main challenge is infrastructure. Within infrastructure, item number one is electricity generation. Power is the main constraint as projects are of long gestation. There are other challenges as well like environmental assessment and raw material supply.

Are you confident of overcoming these challenges…

I’m saying that despite the hurdles, we’ll hit 10%. That’s because the Indian industry has been ingenuous ….

How worrisome is inflation, according to you?

At 7.5%, it is worrisome. But I have full confidence in the policymakers. We have seen inflation being brought down in the past. In the last four years, twice it has reared its head and twice it has been brought down.

If the policymakers say that it will be brought down to 5.5%, I fully believe that they will. You need action on several fronts - fiscal, monetary and supply. Since there’s clear articulation on that, I believe that inflation will be brought down.

Prime minister Manmohan Singh recently reiterated the need for corporate sobriety, and finance minister P. Chidambaram hinted that India Inc should learn to bear short-term pain even if it meant a cut in profitability, to control inflation. Do you think it’s fair on the part of the government to make such demands?

I think the PM spoke of corporate sobriety in the context of wage increase. It could make us uncompetitive, he felt. And I agree with the PM completely. The solution is to increase the supply of people so that you don’t get into an attrition situation and war for talent where the only solution is wage increase.

That’s what the PM was suggesting and I buy it. If you look at the knowledge part of the industry, they have already implemented it. I think more and more companies will implement it.

As far as product pricing and sobriety is concerned, it’s a question of demand and supply. Also, new capacity has to be created. On the supply side, solutions are being found.

There are several means through which prices will be brought under control. But the government is sending a clear message that if after all this prices do not correct, it is ready with administrative measures, which it will not hesitate to use. Industry has to hear it loud and clear.

Do you think it’s realistic to ask India Inc to bring down profitability?

Profitability can be interpreted in several ways: Cut cost, increase prices, increase production. There are several tools, and the government is sending a message that corporates should use all the tools to help check inflation and ensure that growth does not suffer in the long run.

Did the PM have specific sectors in mind like steel and cement, or was his statement on corporate sobriety more general?

The two specific sectors were mentioned, and there’s no doubt about that. But, there was a larger context to his statement.

There was a recent survey that business confidence in the Indian economy is at its low right now. Do you agree?

As a banker, it’s my job to feel the pulse of my customer. I haven’t seen any negativity at all. The other proof is that there’s no slackening in the $700 billion investment pipeline - no corporate has said that I want to back out. I think the corporate India is still bullish.

What’s you view on banking sector consolidation? Do you see it increasing?

We’ll have to not only consolidate but there has to be a drive in the financial sector to respond to the 10% growth challenge. The financial sector (not just banking) will have to re-invent itself, and that means it has to double its size every three or four years. We have to ask the question: Are we ready for that? I don’t think we are ready for that.

Losses in the MTM (mark to market) derivatives market have been in news…

The total size of the investment in these instruments by the Indian banking system will be less than 1% of the banking assets. So, I don’t know whether we should be worried about it at all. Underlying credit quality has not deteriorated, these are book losses.

The size of it makes it not really relevant. Just to put it in context, when banks had a non-performing assets problem, that problem was 25% to 40% of the balance sheet of the bank. So, by that standard, this is not a problem that you should be worried about.

As CII president, you will be talking to all political parties for various issues. Will bringing FDI into the retail sector and increasing the permissible level of foreign investment in the insurance sector be on your agenda?

We will take up every issue that is relevant to India, and not because it is relevant to any vested group. Some of the sectors you mentioned may be very relevant and others may not be so relevant (in the context of FDI).

Berger Paints Forges Alliance With Becker Acroma

Berger Paints Ltd has forged alliance with Italian Becker Acroma Spa to roll out water-based and polyurethane wood-finish products for the Indian market. These two products will be followed by glass paints, clear coats, floor coatings, exterior coatings for heritage buildings and other products from the collaboration - Berger-Becker Acroma, in India, in the second phase of expansion beginning in September, the source said. According to the source, the wood finish market in India is estimated at Rs 300 crore.

RPL Agreements To Acquire Coal Concessions In Indonesia

Reliance Power Ltd has informed that Reliance Coal Resources Pvt Ltd, a wholly owned subsidiary of Reliance Power Ltd has entered into a definitive agreement to acquire 100 per cent economic interest in three coal concessions in Indonesia.

Apollo Hospital's Investing About Rs 1,000cr

New Delhi: Medical care services provider Apollo Hospital's group on Wednesday said that it will be investing about Rs 1,000 crore in the next 18 months to set up about 15 hospitals in tier II and III cities in India.

The hospital chain, which is looking for an overseas expansion, is also planning to re-enter Sri Lanka besides expanding its operations in African continents. "The idea is to set up tertiary hospitals in tier II and III cities, we plan to set up about 1 5 hospitals in next 18 months with an investment of about Rs 1,000 crore,'' Apollo Hospitals Group Chairman Prathap C Reddy told reporters here on the sidelines of CII annual session.

He said on an average these hospitals would have around 200 beds and in the next 18 months, the group is looking at 10,000-bed capacity.

Commenting on overseas expansions, Dr Reddy said the group is planning to re-enter Sri Lanka again.

Apollo Hospitals, earlier, had operations in Sri Lanka in which they had minority stake and it had to abandon the project following the take-over by the Sri Lankan business tycoon Harry Jayawardene.