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.
Monday, May 5, 2008
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.
Saturday, May 3, 2008
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.
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.
Friday, May 2, 2008
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).
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.
Thursday, May 1, 2008
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.
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.
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