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DoT report on TRAI spectrum auction suggestions tomorrow

Written By Unknown on Senin, 30 September 2013 | 21.03

The DoT panel, which reviewed sectoral regulator TRAI's  recommendations on the third round of spectrum auction, is likely to submit its report tomorrow to the Telecom Secretary, official sources said.

Also read: Tata Docomo to expand mobile broadband service

"The report is likely to be completed by today evening and then it will be submitted to the Telecom Secretary tomorrow. It will also be circulated to the members of Telecom Commission," the source said.

The Telecom Regulatory Authority of India (TRAI) came out with recommendations on spectrum pricing and trading on September 9. The Department of Telecom (DoT) had formed an internal committee, headed by Member (Technology), on the same day to study TRAI recommendations.

The regulator in its recommendations had suggested up to 60 percent cut from the last auction's reserve price in the floor price of mobile phone spectrum for the upcoming auction.

The two previous sales had drawn lukewarm response due to high reserve price.

TRAI had suggested a pan-India reserve price of Rs 1,496 crore per MHz in the 1800 band, down 37 percent from the base price set in the previous auction.

In the 900 MHz band, it recommended a reserve price of Rs 288 crore per MHz for Delhi, Rs 262 crore for Mumbai and Rs 100 crore for Kolkata. These rates are about 60 per cent lower than the reserve price set in the previous auction.

The committee's findings would be reviewed and placed before the inter-ministerial body Telecom Commission, sources said, adding that the Department may seek additional clarification, if any needed, from TRAI after the panel's report.



21.03 | 0 komentar | Read More

Management bandwidth a concern for acquisition: Infotech

Infotech is always looking out for a good bargain. It has articulated an acquisition strategy and has also articulated the process by which these acquisitions will be made, says Krishna Bodanapu, President & COO of Infotech Enterprises . This strategy will help in fulfilling gaps in terms of capabilities or geographic locations and given the resources at the company's disposal, the only limiting factor is the management bandwidth, he says. Infotech has not yet decide on the number of companies it plans to acquire. It is currently evaluating all group options, he adds.

Also Read: SpiceJet tanks 7% on auditors' networth concern remarks

The company boasts of a bit more than Rs 600 crore of cash. It also has other assets that it can leverage upon and does not have any debt on its balance sheet. Bodanapu says the company has a lot of real estate on its books, which runs into hundreds of crore.

Below is the verbatim transcript of Krishna Bodanapu's interview on CNBC-TV18

Q: Reports indicate that the company is planning to acquire a company in the US, if you could just confirm that, is that on the companies anvil this plan to acquire a company, if yes how soon, the size of the company, have you shortlisted anything?

A: We have articulated our acquisition strategy in the past and we have also articulated the process that we are following in terms of making these acquisitions and within that context we have companies in various stages of process and we are always hopeful that something will close in the near term. It is always difficult to say when exactly something will close and even if it will close till it actually happens. We are running a pretty robust process and we are fairly confident that we will see results out of that process soon.

Q: How many companies is the company planning to acquire?

A: We don't have a number per se. We have articulated a strategy around what we want to do in terms of fulfilling our gaps in terms of capabilities or geographic locations and given the resources we have at our disposal the only limiting factor we believe is really the management bandwidth. Keeping that in mind we are evaluating a number of options at this point. We really don't have a number and we are evaluating all group options.

Q: Will you close an acquisition in FY14? Are any of your shortlisted candidates in the final stages of negotiations?

A: We do have some but unfortunately with acquisitions till it actually happens it is not prudent to say with certainty. However, we do have a fairly robust pipeline.

Q: How much of your cash would you be comfortable deploying to make an acquisition? You have close to about Rs 600 crore of cash.

A: We have little bit more than Rs 600 crore of cash. We also have other assets that we can leverage upon. We don't have any debt on our balance sheet. So, having said that the only limitation that we are looking at, at this point is our ability to acquire and assimilate a company is really the management bandwidth.

Q: Which are the other assets that you could leverage?

A: We have a lot of real estate on our books.

Q: How much would be the size of these assets?

A: It is into hundreds of crore. I don't have an exact number with me.



21.03 | 0 komentar | Read More

Airtel shareholders approve selling DCMS biz for Rs 177cr

Sep 30, 2013, 06.57 PM IST

Bharti Airtel, in a filing to the BSE today, said that shareholders passed the resolution with "overwhelming majority".

Like this story, share it with millions of investors on M3

Airtel shareholders approve selling DCMS biz for Rs 177cr

Bharti Airtel, in a filing to the BSE today, said that shareholders passed the resolution with "overwhelming majority".

Like this story, share it with millions of investors on M3

Airtel shareholders approve selling DCMS biz for Rs 177cr

Bharti Airtel, in a filing to the BSE today, said that shareholders passed the resolution with "overwhelming majority".

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Bharti Airtel's shareholders have approved a proposal for selling the company's Data Centre and Managed Services business to its wholly-owned subsidiary Nxtra Data for about Rs 177 crore. The company in a filing to the BSE today said that shareholders passed the resolution with "overwhelming majority".

"Slump sale of Data Centre and Managed Services Business to Nxtra Data Limited, a wholly owned subsidiary of Bharti Airtel Limited ... passed with overwhelming majority," the company said. The country's largest telecom company in August has said that it will seek shareholders' approval for sale or transfer of its DCMS business "for a consideration not less than Rs 1,771 million."

"The transfer consideration has been arrived at on the basis of enterprise value of the DCMS business after reducing the liabilities in relation to the said business," it had said.

Bharti Airtel owns seven operational data centres across the country. Out of them, two are in Noida, one each in Chennai, Bangalore, Pune, Bhubaneswar and Mumbai.

The company's board of directors approved the transaction during their meeting held on July 30. In this regard, Bharti Airtel had also entered into a Memorandum of Understanding with Nxtra Data Ltd.

"Due to the increasing awareness and acceptance of key products such as co-location, managed hosting and managed security, the demand of DCMS is continually evolving in the country. DCMS division offers a gamut of services, including co-location, managed services and managed back-up & storage.

Shares of the company today closed at Rs 318.25 a unit, down by 2.11 per cent at BSE.



21.03 | 0 komentar | Read More

MCA seeks SFIO probe status on Tata-Unitech deal

The Corporate Affairs Ministry has asked financial fraud investigative agency SFIO to provide a status report on a probe that is said to have found 'dubious' transactions between Tatas and realty firm Unitech even as the two companies denied any wrongdoings.

The SFIO (Serious Fraud Investigation Office) probe was ordered by the Ministry last year into the affairs of Niira Radia-led PR firm Vaishnavi, which used to handle media relations of various Tata group firms and Unitech . While SFIO is yet to submit its final report on the case, its Mumbai office is said to have communicated to its head office here that certain 'dubious' transactions disguised as realty transactions took place between Tatas and Unitech.

Also Read: Unitech shares rise 2% on multi-crore deal with Aon Hewitt

Among others, the report is also said to have suggested prosecution of five senior management personnel at Tatas, as also against four top Unitech executives and one at Vaishnavi. Asked to comment on the matter, Corporate Affairs Minister Sachin Pilot said his ministry has not received a report from SFIO as yet and he has sought a status report from the agency.

"The ministry has so far received no such report. I have asked the agency (SFIO) to come and brief me as to what the status of the report is," Pilot told reporters on the sidelines of a CII event here.

In reply to queries in this regard, a Tata Sons spokesperson said: "The Tata group has comprehensively addressed questions from all Government agencies and fully cooperated with all authorities in their investigations, including the SFIO.

"The group has not seen any SFIO report so far; as such, we are not in a position to address any specific questions relating to any such report. We stress that our group is committed to the highest standards of ethics and business conduct."

A spokesperson for Unitech also said that "the Tata-Unitech transaction was a legitimate and bona fide business transaction between two real estate companies." Earlier in the morning, Corporate Affairs Secretary Naved Masood said that the report is still awaited from SFIO. "The report (is) awaited," Masood said when asked about the findings of SFIO probe, and refused to elaborate further.

As per the SFIO Mumbai report, it is suspected that a Rs 1,700-crore realty deal between Tatas and Unitech in 2007 could have been meant for funding Unitech's telecom licence issued in January 2008. Tata group's dealings with Vaishnavi entities are also reportedly under scanner.

A Vaishnavi spokesperson denied any role of the company in any commercial land transactions between Tata and Unitech and questioned the veracity of any "conclusive report" in the investigations related to its companies.

Radia hit headlines in 2010 after her leaked conversations with various politicians, businessmen, journalists and others became public.

Reacting to the reports, Unitech shares plunged by over 4 per cent to a low of Rs 15.50 this morning at the BSE, before finally closing at Rs 15.70, 3.4 per cent down from its previous close.

In his statement, Unitech spokesperson further said: "In fact, contrary to what is being alleged, Tata Realty is in advance stage of completing a real estate development on the captioned land which is being marketed as 'Tata Primanti'.

"The Tata-Unitech transaction has been extensively investigated by several agencies including the CBI, and no irregularity has been found in this transaction as per the CBI presentation before the JPC quoted by the media.

"Further, none of our companies are/have been under any investigation by the Serious Fraud Investigation Office (SFIO).

"This fact can be independently corroborated from the list of companies under investigation and companies already investigated by the SFIO during the last 3 years, as provided by Sachin Pilot, Minister of State (Independent Charge), Ministry of Corporate Affairs in response to" various Parliament questions.

"Consequently, the question of any SFIO report in respect of Tata-Unitech transaction does not arise because the
SFIO under the law is not empowered to suo motu undertake any investigation," Unitech said, while adding that the SFIO appears to be at present investigating the Vaishnavi Group of Companies as per the minister's reply to a Lok Sabha query on April 25, 2013.

In his statement, the Vaishnavi spokesperson said: "We are not aware of any report by the SFIO in the matter stated by you. In fact, we doubt the existence of any authentic conclusive report in the investigations related to our companies as we continue to cooperate in the ongoing process of investigations.

"Various former senior executives and Directors of our companies have already given statements on various aspects related to the company operations and its client mandates.

"We categorically deny any presumption or suggestion on our role in any commercial land transaction between the Tata Group entity and Unitech. To the best of our knowledge, some parcel of the land has already been developed pursuant to the conclusion of the transaction.

"It is extremely disturbing to note that the trend of leaking selective, questionable and motivated 'pieces of information' continues unabated by corporate vested interests."

"We have been the target of such vilification campaigns over the last many years which has defamed and maligned our reputation causing irreparable damage," the spokesperson said, while adding that the primary objective of such reports seems to be to create smoke screens.



21.03 | 0 komentar | Read More

DHL Express to hike rates by nearly 10% in India from Jan

Logistics services provider DHL Express today said it will hike prices by an average 9.9 percent for Indian customers from 2014 to counter impact of inflation and weakness in the rupee against the US dollar. "In India, the average price increase for Time Definite International products will be 9.9 per cent," the company said in a statement.

Country Manager - India, DHL Express, RS Subramanian said mitigating the impact of high inflation has been a key driver behind the world's leading international express services provider's pricing strategy in India.

"We are also faced with the added pressure of the depreciating rupee. Since January 2013 the Indian rupee has depreciated by over 16 per cent and so far DHL has absorbed costs whilst ensuring that delivery times and service quality continued to improve," said Subramanian.

The increased rates will be effective from January 1, 2014. The company said the annual rate increase is also driven by the continuous investments made to support growth and improve quality and impact of inflation on input costs.

It added the pricing strategy is targeted at ensuring a sustainable value proposition for customers while the company continued to make significant investments in its global and in-country network.

In 2013, DHL added capacity to air networks in all regions globally and in India, it made significant investments towards strengthening the existing network and expanding the footprint, he said.

It also announced a general average price increase in each of the 220 countries and territories that it serves.



21.03 | 0 komentar | Read More

No issue on S'pore Airlines and Tata MoU: Tony Fernandes

Written By Unknown on Minggu, 29 September 2013 | 21.03

Clearing the air with regard to the Tatas signing MoU with Singapore Airlines, AirAsia Group CEO Tony Fernandes today said there was no issue between him, Singapore Airlines and Tatas.

"I have and continue to have no issue on SIA (Singapore Airlines) and Tata. No difference to Ginger and Taj Hotels. These are two very separate business", Fernandes said in social networking portal --Twitter.

Tata Sons, the holding company of the Tata Group, signed a memorandum of understanding with Singapore Airlines for a joint venture to start a new full service airline in India. 

The new venture, to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with USD 49 million of foreign direct investment.

Meanwhile, the AirAsia India's first board meeting is scheduled to be held in Mumbai later today.

Commenting about it, Fernandes said, "first Air Asia India Board meeting. Superb cooperation between partners. I am confident we will make profits in first year and change aviation".

However, Fernandes would skip the board meeting as he was in Indonesia. "In Jakarta. Good Quarter. Adding more aircraft to Indonesia", he said.



21.03 | 0 komentar | Read More

Nalco rejects Vedanta's request for alumina

Aluminium major NALCO has rejected a request to sell surplus alumina to bauxite starved Vedanta for its smelter at Jharsuguda, saying it was against the Navaratna PSU's policy to supply it in domestic market.

"We are not in a position to provide alumina or bauxite to any other company inside the country," Nalco CMD Ansuman Das told reporters after the company's annual general meeting here today.

According to the policy adopted by Nalco's board, the company does not sell either bauxite or alumina to other companies in the domestic market, Das said while responding to queries about the plea by Vedanta Aluminium Ltd (VAL) VAL's Managing Director S K Roongta had recently sought the Odisha government's intervention to impress upon Nalco to sell its surplus alumina for its smelter at Jharsuguda.

In a letter to Chief Secretary J K Mohapatra, he had said: "We earnestly request you to impress upon Nalco to start selling/allow participation of smelter companies located in Odisha, which would be treated as deemed exports for Nalco in its alumina tenders, so that same can be utilised for increasing revenues for the exchequer, ensuring value addition and also generation of employment opportunities."

Stating that Nalco was exporting surplus alumina of over one million tonne a year, Roongta said: "The diversion of this surplus alumina for VAL's alumina smelter will generate extra revenue for Nalco at around Rs 200 crore annually over and above its export realisation, thus helping improve its financial balance sheet."

As VAL's refinery at Lanjigarh in Kalahandi district is running at a depleted capacity of 30-40 per cent on outsourced bauxite from states such as Gujarat, Chhattisgarh and Jharkhand, this has been hurting alumina availability for its smelter plants, Roongta had said.

VAL has two smelters at Jharsuguda. The 0.5-million tonne per annum (mtpa) smelter plant, supported by a 1,215 Mw captive power plant, produces downstream products such as wire rods and billets. This unit was in operation and meeting its alumina requirement through imports, sources said. The other smelting facility of 1.2 mtpa capacity was installed as a special economic zone (SEZ) unit. This was yet to be commissioned due to non-availability of alumina.

Overall performance of VAL's smelter was hit after Lanjigarh refinery faced shutdown between December 5, 2012 and July 11, 2013 as bauxite sources dried up, they said.

It may be noted that Nalco had earlier turned down VAL's request to allow it to participate in the tendering process for sale of surplus alumina. VAL had even offered a premium of 7-10 per cent over Nalco's export price of alumina.



21.03 | 0 komentar | Read More

In talks with KKR to sell stake in holding co: Apollo

Apollo Hospitals on Tuesday confirmed that they are in talks with private equity player KKR to offload a stake in the holding company, PCR Investments.

Speaking exclusively to CNBC-TV18's Shereen Bhan on the day the hospital turned 30, founder Prathap Reddy says that negotiations for the sale are on and could be concluded over the next few weeks.

KKR could pick up 7 percent in PCR investments which would be equivalent to 3-4 percent stake in Apollo Hospitals. 

Reddy also said that the company was on track to touch 2,000 pharmacies over the next few months. It could also take a call on divesting the pharmacy business or bringing a strategic partner on board after 6-7 months. 

Apollo hospitals has outlined a capex plan of Rs 2500 crore. Out of those, Rs 600 crore has already been spent and doesn't take into account the sharp depreciation of the rupee.

Reddy is confident of adding 900 beds in the next few months and the total bed strength could touch 3,500 by 2015.

India's largest hospital chain is also looking at stepping on its international expansion over the next 2-3 years. It is in talks with 2-3 countries to start day care clinics and hospitals with Tanzania being the first destination.

Below is an excerpt of his interview to CNBC-TV18.

Q: Please comment on whether you are in talks with private equity giant KKR to sell a stake in Apollo Hospitals or your holding company. There has been a lot of speculation.

A: We are talking to KKR. I am sure you know that KKR wants a major part of HCA. We met Mr. Travis. We were really pleased with his views and we thought it is very nice to be associated with them. I am not giving any of the Apollo equity. We are only giving our PCR Investments' portion.

We are talking to them and whatever has happened in the last one month, there has been some delay. We have not finalised anything, but all that I can assure is we are talking and it is going well. Hopefully, when all is well, we will announce to you.

Q: So there are no plans to offload any stake in Apollo Hospitals if at all a deal fructifies will KKR. KKR will pick up an investment in the holding company which is PCR Investments. How much stake are you looking to offload in the holding company?

A: It will be equivalent to about 3-4 percent of Apollo which should work out around seven percent of PCR. PCR also holds other investments; so it is probably around that level. It is equivalent to approximately around USD 100 million.

We are still talking, nothing is final yet. There is a good wavelength because KKR wants HCA- the world's largest healthcare system in US. Since we are probably one of the largest in this part of the world, it is nice to have association with the person who has a large interest there.

Q: By when do you hope to finalise the negotiations with KKR?

A: I do not know. We thought they were a little busy and we were busy. Maybe, in the next few weeks; it should not be too long. If it happens, it should happen in the last few weeks.

Q: Any plans for the pharmacy business going forward? You were looking to possibly hive that off? Have those plans been shelved altogether?

A: We have not shelved at all. Somehow or the other, we have never been serious on hiving pharmacy division. What we thought was pharmacy first it should reach what they think is a critical level 2000 pharmacies. It hopefully will reach in the next six months. At that time, they will probably think.

However they should go with someone not in private equity investor, but someone who has got a similar business.

We have no idea at this point, but we are positive. I spoke to Shobana Kamineni, she said we are very clear that our next target is to hit 2000 pharmacies. We are marching there with all our efforts and also creating little change in the models to suit the present time because people now are talking more about wellness. So, we are adding little more portion of wellness into the new pharmacies.

Q: When you touch the 2000 pharmacy stores, you will look at bringing on board either a strategic partner or possibly hiving-off this business? Those plans are very much on the cards, but you will not like to sell it off or bring on board private equity investor?

A: We want to go ahead and complete these 2000 pharmacies. At this time we have no plans of hiving out or associating with anybody at this time, perhaps after six-seven months. If there is something good in these partnerships, the board will consider it but in the last meeting Shobana very categorically said that we have no plans at this time to do.

Our next objective is to fine-tune all our stores and then reach that 2000 pharmacy number. Two thousand is not a magic number but the software they have at the moment so it is nice to reach that number which will be taking us to a few more places where we are not there now. 



21.03 | 0 komentar | Read More

Nalco to pay Rs 322.15 crore as dividend to government

Aluminium giant Nalco has announced a total dividend payout of 25 percent, amounting to Rs 322.15 crore for 2012-13, as against 20 percent paid in the previous year.

Also read: Nalco rejects Vedanta's request for alumina

Announcing this after the Annual General Meeting of the company here, Nalco CMD Ansuman Das said the shareholders of the Navaratna PSU approved a total dividend payout of 25 percent which works out to Rs 1.25 per share.


With this, the total payout would be Rs 322.15 crore for 2012-13, he said, adding, since inception Nalco had paid a total of Rs 4519.17 crore as dividend, including Rs 3920.73 crore as share of the central government.

The upward revision was approved following a recommendation for payment of a final dividend at Rs 0.50 per share (10 percent) in addition to the interim dividend of Rs 0.75 per share (15 percent) paid on March 30, 2013.

The total dividend pay-out for 2012-13 would work out to be at Rs 1.25 per share (25 percent) as against Rs 1.00 per share (20 percent) paid for 2011-12.



21.03 | 0 komentar | Read More

Nationwide ban on earth mining for bricks and roads: NGT

In a blow to brick-kiln industry and road contractors, the National Green Tribunal has banned digging of earth across the country for making bricks and roads without prior environment clearance (EC).

A bench headed by Justice P Jyothimani has directed the Chief Secretaries of all the states and union territories to ensure that its interim order is adhered to.

"We restrain any person, company and authority to carry out any such digging activities of brick earth or ordinary earth against the directives issued by the Ministry of Environment and Forests (MoEF) of June 24, 2013 in any part of the country without obtaining EC from the competent authority.

"The Chief Secretaries of all states/Union Territories (UTS) are to ensure strict adherence to this order," it said.

The tribunal issued notices to Uttar Pradesh seeking its response on the plea for directions to the state government to stop extraction of earth for making bricks and roads, which is allegedly going on in violation of a Supreme Court decision as well as directions of the MoEF to all the states.

"Considering the seriousness of the issue", the bench restrained the UP government from permitting such digging until further orders of the tribunal.

The NGT made the order applicable to all the states saying "as the judgement of the apex court as well as the directives issued by MoEF has got the effect and applicability throughout the territory of India,... what is applicable to respondents (UP government) by our interim order is applicable to all the other states and UTs also".

The ban on brick earth mining comes one-and-a-half months after the NGT banned sand mining from river beds, without environment clearance, across the country.

As per the petition, MoEF in its office memorandum to the states has directed that digging of earth for making bricks and roads requires EC from the competent authority.

The petition has alleged that in spite of the decision of the apex court and the directives of the MoEF, the Uttar Pradesh government has not framed rules/guidelines for the purpose of obtaining EC and are allowing indiscriminate digging of earth.



21.03 | 0 komentar | Read More

No issue on S'pore Airlines and Tata MoU: Tony Fernandes

Written By Unknown on Sabtu, 28 September 2013 | 21.03

Clearing the air with regard to the Tatas signing MoU with Singapore Airlines, AirAsia Group CEO Tony Fernandes today said there was no issue between him, Singapore Airlines and Tatas.

"I have and continue to have no issue on SIA (Singapore Airlines) and Tata. No difference to Ginger and Taj Hotels. These are two very separate business", Fernandes said in social networking portal --Twitter.

Tata Sons, the holding company of the Tata Group, signed a memorandum of understanding with Singapore Airlines for a joint venture to start a new full service airline in India. 

The new venture, to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with USD 49 million of foreign direct investment.

Meanwhile, the AirAsia India's first board meeting is scheduled to be held in Mumbai later today.

Commenting about it, Fernandes said, "first Air Asia India Board meeting. Superb cooperation between partners. I am confident we will make profits in first year and change aviation".

However, Fernandes would skip the board meeting as he was in Indonesia. "In Jakarta. Good Quarter. Adding more aircraft to Indonesia", he said.



21.03 | 0 komentar | Read More

Nalco rejects Vedanta's request for alumina

Aluminium major NALCO has rejected a request to sell surplus alumina to bauxite starved Vedanta for its smelter at Jharsuguda, saying it was against the Navaratna PSU's policy to supply it in domestic market.

"We are not in a position to provide alumina or bauxite to any other company inside the country," Nalco CMD Ansuman Das told reporters after the company's annual general meeting here today.

According to the policy adopted by Nalco's board, the company does not sell either bauxite or alumina to other companies in the domestic market, Das said while responding to queries about the plea by Vedanta Aluminium Ltd (VAL) VAL's Managing Director S K Roongta had recently sought the Odisha government's intervention to impress upon Nalco to sell its surplus alumina for its smelter at Jharsuguda.

In a letter to Chief Secretary J K Mohapatra, he had said: "We earnestly request you to impress upon Nalco to start selling/allow participation of smelter companies located in Odisha, which would be treated as deemed exports for Nalco in its alumina tenders, so that same can be utilised for increasing revenues for the exchequer, ensuring value addition and also generation of employment opportunities."

Stating that Nalco was exporting surplus alumina of over one million tonne a year, Roongta said: "The diversion of this surplus alumina for VAL's alumina smelter will generate extra revenue for Nalco at around Rs 200 crore annually over and above its export realisation, thus helping improve its financial balance sheet."

As VAL's refinery at Lanjigarh in Kalahandi district is running at a depleted capacity of 30-40 per cent on outsourced bauxite from states such as Gujarat, Chhattisgarh and Jharkhand, this has been hurting alumina availability for its smelter plants, Roongta had said.

VAL has two smelters at Jharsuguda. The 0.5-million tonne per annum (mtpa) smelter plant, supported by a 1,215 Mw captive power plant, produces downstream products such as wire rods and billets. This unit was in operation and meeting its alumina requirement through imports, sources said. The other smelting facility of 1.2 mtpa capacity was installed as a special economic zone (SEZ) unit. This was yet to be commissioned due to non-availability of alumina.

Overall performance of VAL's smelter was hit after Lanjigarh refinery faced shutdown between December 5, 2012 and July 11, 2013 as bauxite sources dried up, they said.

It may be noted that Nalco had earlier turned down VAL's request to allow it to participate in the tendering process for sale of surplus alumina. VAL had even offered a premium of 7-10 per cent over Nalco's export price of alumina.



21.03 | 0 komentar | Read More

In talks with KKR to sell stake in holding co: Apollo

Apollo Hospitals on Tuesday confirmed that they are in talks with private equity player KKR to offload a stake in the holding company, PCR Investments.

Speaking exclusively to CNBC-TV18's Shereen Bhan on the day the hospital turned 30, founder Prathap Reddy says that negotiations for the sale are on and could be concluded over the next few weeks.

KKR could pick up 7 percent in PCR investments which would be equivalent to 3-4 percent stake in Apollo Hospitals. 

Reddy also said that the company was on track to touch 2,000 pharmacies over the next few months. It could also take a call on divesting the pharmacy business or bringing a strategic partner on board after 6-7 months. 

Apollo hospitals has outlined a capex plan of Rs 2500 crore. Out of those, Rs 600 crore has already been spent and doesn't take into account the sharp depreciation of the rupee.

Reddy is confident of adding 900 beds in the next few months and the total bed strength could touch 3,500 by 2015.

India's largest hospital chain is also looking at stepping on its international expansion over the next 2-3 years. It is in talks with 2-3 countries to start day care clinics and hospitals with Tanzania being the first destination.

Below is an excerpt of his interview to CNBC-TV18.

Q: Please comment on whether you are in talks with private equity giant KKR to sell a stake in Apollo Hospitals or your holding company. There has been a lot of speculation.

A: We are talking to KKR. I am sure you know that KKR wants a major part of HCA. We met Mr. Travis. We were really pleased with his views and we thought it is very nice to be associated with them. I am not giving any of the Apollo equity. We are only giving our PCR Investments' portion.

We are talking to them and whatever has happened in the last one month, there has been some delay. We have not finalised anything, but all that I can assure is we are talking and it is going well. Hopefully, when all is well, we will announce to you.

Q: So there are no plans to offload any stake in Apollo Hospitals if at all a deal fructifies will KKR. KKR will pick up an investment in the holding company which is PCR Investments. How much stake are you looking to offload in the holding company?

A: It will be equivalent to about 3-4 percent of Apollo which should work out around seven percent of PCR. PCR also holds other investments; so it is probably around that level. It is equivalent to approximately around USD 100 million.

We are still talking, nothing is final yet. There is a good wavelength because KKR wants HCA- the world's largest healthcare system in US. Since we are probably one of the largest in this part of the world, it is nice to have association with the person who has a large interest there.

Q: By when do you hope to finalise the negotiations with KKR?

A: I do not know. We thought they were a little busy and we were busy. Maybe, in the next few weeks; it should not be too long. If it happens, it should happen in the last few weeks.

Q: Any plans for the pharmacy business going forward? You were looking to possibly hive that off? Have those plans been shelved altogether?

A: We have not shelved at all. Somehow or the other, we have never been serious on hiving pharmacy division. What we thought was pharmacy first it should reach what they think is a critical level 2000 pharmacies. It hopefully will reach in the next six months. At that time, they will probably think.

However they should go with someone not in private equity investor, but someone who has got a similar business.

We have no idea at this point, but we are positive. I spoke to Shobana Kamineni, she said we are very clear that our next target is to hit 2000 pharmacies. We are marching there with all our efforts and also creating little change in the models to suit the present time because people now are talking more about wellness. So, we are adding little more portion of wellness into the new pharmacies.

Q: When you touch the 2000 pharmacy stores, you will look at bringing on board either a strategic partner or possibly hiving-off this business? Those plans are very much on the cards, but you will not like to sell it off or bring on board private equity investor?

A: We want to go ahead and complete these 2000 pharmacies. At this time we have no plans of hiving out or associating with anybody at this time, perhaps after six-seven months. If there is something good in these partnerships, the board will consider it but in the last meeting Shobana very categorically said that we have no plans at this time to do.

Our next objective is to fine-tune all our stores and then reach that 2000 pharmacy number. Two thousand is not a magic number but the software they have at the moment so it is nice to reach that number which will be taking us to a few more places where we are not there now. 



21.03 | 0 komentar | Read More

Nalco to pay Rs 322.15 crore as dividend to government

Aluminium giant Nalco has announced a total dividend payout of 25 percent, amounting to Rs 322.15 crore for 2012-13, as against 20 percent paid in the previous year.

Also read: Nalco rejects Vedanta's request for alumina

Announcing this after the Annual General Meeting of the company here, Nalco CMD Ansuman Das said the shareholders of the Navaratna PSU approved a total dividend payout of 25 percent which works out to Rs 1.25 per share.


With this, the total payout would be Rs 322.15 crore for 2012-13, he said, adding, since inception Nalco had paid a total of Rs 4519.17 crore as dividend, including Rs 3920.73 crore as share of the central government.

The upward revision was approved following a recommendation for payment of a final dividend at Rs 0.50 per share (10 percent) in addition to the interim dividend of Rs 0.75 per share (15 percent) paid on March 30, 2013.

The total dividend pay-out for 2012-13 would work out to be at Rs 1.25 per share (25 percent) as against Rs 1.00 per share (20 percent) paid for 2011-12.



21.03 | 0 komentar | Read More

Nationwide ban on earth mining for bricks and roads: NGT

In a blow to brick-kiln industry and road contractors, the National Green Tribunal has banned digging of earth across the country for making bricks and roads without prior environment clearance (EC).

A bench headed by Justice P Jyothimani has directed the Chief Secretaries of all the states and union territories to ensure that its interim order is adhered to.

"We restrain any person, company and authority to carry out any such digging activities of brick earth or ordinary earth against the directives issued by the Ministry of Environment and Forests (MoEF) of June 24, 2013 in any part of the country without obtaining EC from the competent authority.

"The Chief Secretaries of all states/Union Territories (UTS) are to ensure strict adherence to this order," it said.

The tribunal issued notices to Uttar Pradesh seeking its response on the plea for directions to the state government to stop extraction of earth for making bricks and roads, which is allegedly going on in violation of a Supreme Court decision as well as directions of the MoEF to all the states.

"Considering the seriousness of the issue", the bench restrained the UP government from permitting such digging until further orders of the tribunal.

The NGT made the order applicable to all the states saying "as the judgement of the apex court as well as the directives issued by MoEF has got the effect and applicability throughout the territory of India,... what is applicable to respondents (UP government) by our interim order is applicable to all the other states and UTs also".

The ban on brick earth mining comes one-and-a-half months after the NGT banned sand mining from river beds, without environment clearance, across the country.

As per the petition, MoEF in its office memorandum to the states has directed that digging of earth for making bricks and roads requires EC from the competent authority.

The petition has alleged that in spite of the decision of the apex court and the directives of the MoEF, the Uttar Pradesh government has not framed rules/guidelines for the purpose of obtaining EC and are allowing indiscriminate digging of earth.



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Is Satyam-style takeover of NSEL possible?

Written By Unknown on Jumat, 27 September 2013 | 21.03

The Arvind Mayaram Panel is contemplating a government takeover of National Spot Exchange Limited (NSEL), similar to what was done in the Satyam scandal, reports CNBC-TV18's Aakansha Sethi.

Also read: MCA widens NSEL probe; seeks details of related entities

The panel has given various options for different investigatng agencies and has asked the Ministry of Corporate Affairs (MCA) to examine if the government's takeover could be a possible route.

While the Central Bureau of Investigation (CBI) is likely to look for Indian Penal Code (IPC) violations, the IT Department will follow up with income evasions, and the Forward Markets Commission (FMC) will investigate if the exchange violated the Forward Contracts Regulation Act (FCRA).

For violations of the FCRA, Financial Technologies promoted-NSEL was given an exemption by the then Food Minister Sharad Pawar. The only action that can perhaps be taken is to ascertain whether NSEL promoters are fit-and-proper.

Sources in the government have said that they are unlikely to be fit and proper and hence that could have an implication on the 26 percent stake that they hold in Multi Commodity Exchange of India ( MCX ). However, prosecution under FCRA will be limited and hence, the government is examining whether the promoter and those who are guilty can be prosecuted.

As far as criminal proceedings are concerned, the Economic Offences Wing (EOW) has not registered a case as yet and till the EOW does not register a case and criminality is not established the Enforcement Directorate (ED) cannot register a case and examine the possibilities of money laundering.

Hence, until criminality is proved, there is really no tangible action that will be taken i.e,  examining if the government can take over the NSEL board and can proceed the Satyam way.



21.03 | 0 komentar | Read More

Mahindra to hike prices by up to Rs 20,000 from October

Auto major Mahindra & Mahindra today said it will hike the prices of its passenger cars and commercial vehicles by Rs 6,000 to Rs 20,000 from October 1, partly to offset higher input costs and depreciation of rupee against the dollar.

"The company would be raising the prices of its passenger as well as its commercial vehicles by up to 2 per cent. This increase would be in the range of Rs 6,000 to Rs 20,000 depending on the model and will be effective from October 1," Mahindra & Mahindra (M&M) Ltd said in a statement.

The increase is primarily due to devaluation of the rupee and increase in raw material costs, it added.  "We have been holding back prices for a while but now it has become necessary to raise them due to increasing input costs, devaluation of the rupee and increase in some raw material costs," M&M Ltd Chief Executive, Automotive Division, Pravin Shah said.

The Mumbai-headquartered firm manufactures various models including the sports utility vehicles Scorpio, XUV500, Bolero and entry-level sedan Verito.  Earlier this week, Maruti Suzuki India had announced increase in prices of its entire range of models by up to Rs 10,000 from October first week, mainly due to depreciation of rupee.

Earlier, this month, Hyundai and General Motors decided to increase vehicle prices by up to Rs 20,000 to offset the impact of rupee depreciation and rising input costs, resulting in higher spending by new car buyers in the festive season.

Tata Motors said it plans to increase the prices of its passenger and commercial vehicles by around 1-1.5 per cent, depending on the model, either petrol or diesel. Toyota Kirloskar Motor had announced a hike in prices of its key models by up to Rs 24,000 with effect from September 21.Last month, German luxury car maker Mercedes-Benz had hiked prices of its entire range in India by up to 4.5 percent from September 1 due to these factors. General Motors India had also hiked the  rice of its three models by up to Rs 10,000 from the first week of September.

 In July, Audi had also increased prices across its models in the country by up to 4 per cent. Although the rupee has recovered some ground against the dollar in the past few days, it depreciated for a prolonged period. It has weakened against the dollar since April, pushing up import and input costs.



21.03 | 0 komentar | Read More

Econocaribe deal to be EPS accretive from 1st yr: Allcargo

Shashi Kiran Shetty, founder and executive chairman of Allcargo Logistics spoke about the company's  acquisition of US based-Econocaribe Consolidators .

Allcargo Logistics has spent abour USD 50 million in acquiring Econocaribe Consolidators, says founder and executive chairman, Shashi Kiran Shetty.

Speaking to CNBC-TV18, Shetty says the acquisition will be earnings per share (EPS) accretive from the first year of the acquisition.

"The company (Econocaribe) is very healthy and it has got about 350 employees with nine offices in the US and about 22 receiving terminals within America. So, it is among the top three in the US market as global consolidators. It will complete our full circle of operations in most part of the world except for Korea and Taiwan- these are the only two significantly large economies where we are not present," adds Shetty who believes the synergy is a strategic one as it increases the company's presence in the US markets.

Below is the edited transcript of Shetty's interview to CNBC-TV18.

Q: Could you take us through the size of this company and what would be the synergies, how much would it add to your revenues?

A: The company we acquired has been our agent in the US since the last six years. The deal size is upwards of USD 40 million, plus a working capital of about USD 8.5 million. So, it roughly works out to about USD 50 million and the synergy of the acquisition is that we as a group didn't have our own presence in the US, which is one of the largest market in the world.

For us, as a growth strategy and also to have a presence in the largest market in the world adds to a lot of synergic benefit in terms of acquiring new customers, in terms of adding more revenue and bringing over global best practices into the acquired company. We see all these in terms of adding value to the company significantly.

Q: How much have you paid for this acquisition and how have you funded it?

A: The acquisition cost works out to close to about USD 50 million and the funding has happened through our subsidiary Ecu Line and it is funded by the Belgium Bank. About 30 percent of equity contribution from Ecu Line and 70 percent is being funded by the Belgium Bank.

Q: Will you be consolidating the numbers of this company and will this be EPS accretive and from what year?

A: The acquisition is in effect from September 1, 2013 and we will be consolidating it under the Allcargo Logistics consolidated profit and loss (P&L) and balance sheet. So, it is value accretive as of September 1.

Q: So it will be EPS accretive from first year itself?

A: Yes. The company is very healthy and it has got about 350 employees with nine offices in the US and about 22 receiving terminals within America. So, it is among the top three in the US market as global consolidators. It will complete this full circle of our own operations in most part of the world except for Korea and Taiwan- these are the only two significantly large economies where we are not present. Otherwise Ecu Line brand is now operating in almost all important markets in the world with their own operation.

Q: Could you tell us some more about the financials of this company, how much by way of revenues, you said it will be EPS accretive, what will be the margins and the contribution to your consolidated P&L?

A: This company has a revenue of about USD 128 million. I cannot disclose the financial valuation at this stage in terms of the multiples because we are at the moment in discussion with some other company for another smaller acquisition. So, that is why we don't want to talk about the other number but it is about USD 120 million.

This will take our global Non Vessel Owning Common Carrier (NVOCC) revenue to about USD 600 million and with an EBITDA of close to about USD 35 million on a global level.

Q: You also said that 70 percent of the deal will be funded via debt from Belgium Bank from your subsidiary, what will be the consolidated debt on the books of Allcargo post that?

A: It will be roughly about Rs 600 crore because right now, it will be slightly higher about Rs 750 crore but we are already repaying about Rs 150 crore the debt which we have in Indian books.

As a matter of fact, in India we have a debt of about Rs 400 crore. Out of Rs 400 crore we are going to pay about Rs 150 crore and those funds we have already been tied up to repay. So altogether we will have in India about Rs 250 crore and about Rs 450 crore in Ecu Line.



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Flexible timings give an advantage to companies using cloud

Q What are the dynamics shaping your Industry?

A Unity…. No single employee can succeed in an organization. It is always you and your team who shares success and failures.

Q In Pratibha Industries , what are your real IT headaches? And what are your peers in the Industry confronted with?

A IT headaches depend upon security secured access. It is now access. It is now become a compulsion to secure the data against, hackers both internal and external with keeping in mind that it needs to be accessed by authorized users at any given point of time.

Q Out of these IT Headaches, which are really acute and how do you plan to address them in short term & near term (< 12 months) ?

A Both!! These are ongoing and continue to haunt IT Departments worldwide over the years. The issue can be addressed in a way that creates a private cloud with secured access.

Q We constantly hear about IT Operations being shaped by cloud, social, mobile & analytics. In your operations, which of these are in order of priority for your organization and why?

A All are equally important. The sequence can change in any situation. These need to be tackled with proper planning.

Q As a CIO, does the Cloud model really make sense for India Inc according to you? If so, which are the best cloud models according to you?

A Definitely. The only question arises what needs to kept and when. Backup solution is becoming complex and so is access to data. The cloud is better option to handle these issues.

Q What is the technology foundation (virtualization, storage, networks, access, etc) that is necessary to leverage the Cloud model?  

A Access to cloud is an important factor. If it is a private cloud we need to look at all the parameters. For a public cloud it is optional. Managing cloud is an important aspect.
  
Q Can cloud change the way business is being run fundamentally?

A Flexible working hours gives advantage to organizations using cloud. Addition and deletion of data can be managed easily. Managing such things are important and difficult to handle in house.

Q Is Cloud computing in your company's priority list in terms of importance?

A We have already started working on private cloud.



21.03 | 0 komentar | Read More

Separate industry and banking when giving new bank licenses

Out of the 12 new banks set up after the 1993 and 2001 guidelines, four were promoted by financial institutions, one each by conversion of a cooperative bank and NBFC into commercial banks, five by individual banking professionals and the remaining one by a media house.

Of the banks promoted by individuals in 1993, only one has survived with muted growth, one was compulsorily merged with a nationalized bank and two merged with private banks. It is on this backdrop that the Standing Committee of Parliament headed by BJP leader and former Finance Minister Yashwant Sinha today adopted a report on the new bank license guidelines issued by the RBI earlier this year, reports CNBC-TV18's Siddharth Zarabi.

Also read: Will look into new bank licences after RBI scrutiny: Jalan

Observing that new bank licenses would not guarantee banking sector growth and financial inclusion, the Standing Committee today adopted a 49 page report on the guidelines.

The Committee has recommended that industry and banking be kept separate, as it is not sure whether the safeguards put in place by the RBI including the fit and proper criteria, and group exposure norms would be effective enough to prevent banks promoted by industrial houses from cozying up to their industrial owners.

It has termed the existing fit and proper criteria as subjective, ambiguous and open ended, leaving the doors open for arbitrariness and favouritism. It wants more precise, coherent and objective yardsticks to assess the credentials of the applicants in a uniform manner.

Highlighting the need for sustainability, the committee suggested that the minimum capital requirement for setting up a new bank be doubled to Rs 1000 crore.

The Standing Committee, which has Congress leader Rahul Gandhi as a member, expressed surprise over the absence of lending norms being prescribed in the guidelines; particularly with regard to lending to entities associated with promoters or even lending within the proposed non-operating financial holding company. It wants the pitfalls of misappropriation of banking resources to be avoided.

Finally, the Committee expects the RBI to respond promptly to those applications which are rejected, without leaving any room for speculation or conjecture. It also wants the RBI to allow rejected applicants the opportunity to seek a review.

It is now up to the RBI, which had deposed before the Committee in this regard, to give any weight to the recommendations.



21.03 | 0 komentar | Read More

Entry, junior level hiring to fall: TeamLease

Written By Unknown on Kamis, 26 September 2013 | 21.03

Entry and junior level hiring are likely to witness a decline in the second half of this fiscal as employers are looking to hire "productive workforce", according to a report by TeamLease Services.

Employers are hiring reactively (just-in-time) when there are projects as employment intentions lag business sentiment, and this leaves little scope for training and orientation, the report said.

Further, hiring activities in tier-2 and -3 cities are expected to slow down for the coming half year across sectors and cities, TeamLease Services' Employment and Business Outlook Report for the half year period (October 2013 to March 2014) said.

"The next few quarters will be interesting to watch due to the mixed signals emanating from various sources," TeamLease Services Senior Vice-President and Co-Founder Sangeeta Lala said.

Lala further added that "while businesses seem positive, hiring is not keeping pace though the requirement for good talent is always there. Various industries too are bearing the brunt of the slowdown, and how well they realign themselves to the ground realities will determine the future."

The report also said the businesses that are sensitive to the political-economic fallout, due to upcoming elections, have gone more slow on hiring.

Engineers continue to be the toast of the talent market, they are the only profiles that are being hired - albeit, in small numbers - from a few locations, it said.

Allahabad, Bareilly, Ludhiana, Ranchi and Warangal are the towns where employers are hiring good engineering talents at relatively lower cost as compared to tier-1 cities.

Experience and skills are a big hit for employers as in the coming half-year, middle-level positions steal the limelight - a trend witnessed in the previous half year.

City wise, Ahmedabad and Bangalore lead a charge of positive growth in both employment and business outlook indices. Pune loses badly as the employment and business sentiments go down, while the other laggards include Chennai and Kolkata.

The survey covered 614 companies in the latest round, focusing on the employment growth potential, the business outlook and hiring forecast with regard to the location and the company profile.



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Hero MotoCorp to introduce 15 product offerings by Mar 2014

Hero MotoCorp , India's largest two-wheeler maker, is stepping up product launches and plans to introduce over 15 offerings by March next year as it seeks to consolidate its leadership position.

The offerings include a refreshed version of its high-end bike Karizma. This is Hero's first commercial production model in which US-based partner Erik Buell Racing (EBR) has played a major development role since their tie-up.

Also read: Maruti to hike prices of all models by upto Rs 10K from Oct

"What we are showing here today is a result of our own research and development with support from our technology partners. Earlier, we had said between September 2013 and March 2014 we will have over a dozen new offerings. Today, we have 15 new products here," Hero MotoCorp Managing Director and CEO Pawan Munjal told PTI at the Hero Global Sales and Marketing Conference here.

A majority of the new offerings will hit the market in the October-December quarter as the company looks to cash in on the festive season in India.

"Most of these products are for the domestic market. We expect the festive season to be good on the back of the good monsoon, recent RBI announcements and the positive sentiment coming back in the market," he said.

Hero is bullish about sales prospects in India in the months ahead.

"The market is inching up its way...my personal opinion is that the worst is behind. The two-wheeler segment is a necessity and it cannot be suppressed for long," Munjal said. Munjal said while some of the new offerings will be refreshed versions of existing models, others will have innovations developed by the company's R&D team, for which patents have been sought.

"There is a lot of innovation happening in our own R&D and we will bring it to the market through some of the products we will launch. We have applied for patents for those innovations. This is showcasing our capability," he said.

Hero has been working aggressively to develop its own technology, besides embarking on an international expansion spree, since the group parted ways with Honda in 2010.

The company picked up a 49.2 percent stake in EBR for USD 25 million in July, after entering into a technology sourcing pact last year.

"We will be launching the new Karizma variants which are redesigned and the engine made more powerful with our partner EBR. This is the first commercial production model in which they have played a big part in development," Munjal said.

Hero MotoCorp had said its first bike without the technology of erstwhile partner Honda would hit the market by 2014. It has been stepping up partnerships with global firms.

The company entered into an alliance with Austria-based engine developer AVL to enhance capability in various segments. Besides, in 2012, it roped in Italian two-wheeler design firm Engines Engineering to collaborate on the next-generation product line-up.

Munjal said the company would stick to meeting its overall targets to maintain its leadership position. "I am confident of achieving our targets and it will automatically lead us to maintaining our leadership position," he said.

In August, Hero announced plans to enter 50 new markets by 2020 with 20 manufacturing facilities across the globe and an overall annual turnover of Rs 60,000 crore. It had set a target of selling 100 million bikes cumulatively by 2020 after rolling out its 50 millionth bike in August.

The company has set a goal of selling 1 million units by 2017 in overseas markets, which will be 10 percent of its total sales.

Hero announced its foray into the African continent in July with the launch of its brand and products in Kenya, where it has set up an assembly unit. A month later, it entered Peru with the launch of the 'Hero' brand and its range of two-wheelers in the Latin American nation.

To keep up with the expansion plans, last year the company announced that it will set up its fourth plant at Neemrana in Rajasthan and the fifth plant in Gujarat, as part of a Rs 2,500 crore investment to increase production and expand research and development capability.

In December 2010, the Indian promoter of the two-wheeler maker, the BM Munjal family, agreed to buy out Honda's entire 26 percent stake in Hero Honda for Rs. 3,841.83 crore.



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Philanthropy has to be spontaneous, can't be forced: Premji

Referring to the issue related to Corporate Social Responsibility (CSR), which has been made mandatory by the new laws that govern companies, IT czar Azim Premji today said philanthropy cannot be forced and it has to be spontaneous.

Also read: Companies to spend Rs 15,000-20,000 cr a year on CSR: Pilot

Premji, founder-Chairman of Wipro - India's third largest software services exporter added however that efforts towards social good need to be "meaningful" and the government alone is not responsible for "social good".

"They are trying to force something. It should be spontaneous," Premji said while commenting on the issue of mandatory CSR during his address at the All India Management Association's (AIMA) 40th national convention here.

The billionaire philanthropist added that giving back to the society is important for the growth of a better world, but it should come from within.

Premji said the stipulation of spending 2 percent of profits should not become a tax at a later stage.

Under the new Companies Act, 2013, all profitable firms with a sizable business will have to spend every year atleast 2 percent of three-year average profit on CSR works.

This would apply to companies with turnover of Rs 1,000 crore and more, or net worth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.

The new rules, which would be applicable from fiscal 2014 -15, also require firms to set up a CSR committee of their board members, including at least one independent director.

However, Premji said: "If things have to change in the society then the involvement of the whole ecosystem is must. One cannot rely on government alone to do social good and one has to become a co-sharer of the goal and the outcome."

Outlining the key factors for making CSR successful, he emphasised on the need to define the purpose and scale of CSR activities and choose a focus area.

Premji, however, cautioned against making CSR a substitute for personal philanthropy.

"There should be a distinction between a company activity which is CSR and personal activity that is philanthropy," he added.

Known for his business acumen as well as philanthropy, Premji said the company's and entrepreneur's responsibility to the society are two different issues.

In 2010, Premji had donated 8.7 percent from his personal stock-holding in Wipro for philanthropy forming the endowment for the Azim Premji Foundation, a not-for-profit organisation set up in 2001.

In February, he announced transfer of 295.5 million Wipro shares worth Rs 12,300 crore held by certain entities controlled by him to an irrevocable trust.



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'Domestic airlines may have had Rs 10k cr losses in FY13'

The domestic airlines industry is estimated to have posted losses to the tune of over Rs 10,000 crore in the previous fiscal, nearly 18 percent down from a year ago, according to a report.

"Capa estimated India's airlines industry posted a combined loss of Rs 105 billion in the FY13, down from the approximately Rs 127 billion the previous year," aviation think-tank Centre for Asia Pacific Aviation (Capa) airlines IT services provider SITA said in a report.

The report was released during the day-long Aviation ICT Forum 2013 here.

Observing that more than 40 percent of these losses were incurred in the last quarter of 2012-13 fiscal alone, the report said, "This squandered the improved performance of the earlier three quarters."

The total industry turnover increased by 8.9 percent to Rs 54,000 in FY2012-13, the report said, adding: "The revenues from international operations increased by 4.1 percent during the year."

Terming the grounding of Kingfisher airlines as one of the most significant development for the industry in FY2012-13, which highlighted the challenging environment, the report said: "The cost environment remained hostile throughout the year with the weakness of the Indian rupee and continued high oil prices being the key challenges."

Even though Brent crude levels softened towards the end of the year, the depreciation of the rupee meant that carriers' fuel prices in India continued to rise, the report said.



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AIMA convention: RBI shouldn't micromanage, says Jalan

The All India Management Association (AIMA), the national apex body of the management profession in India, held its 40th National Management Convention in Delhi on Thursday 26, September. The event was attended by some of the big leaders of the industry, who discussed several key issues facing the Indian economy currently.

At the convention, though unwilling to comment about Reserve Bank of India (RBIs) recent diktat on zero percent EMI schemes former RBI governor Bimal Jalan told CNBC-TV18's managing editor Shereen Bhan that the central bank should not undertake micro-management of the policy.

"Reserve Bank or the central bank of India should not be in the business of micro-managing," said Bimal Jalan, former governor, RBI

Commenting on the new bank licence issue , Bimal Jalan who heads the High Level Advisory Committee (HLAC) said, the proposed external committee will look into new bank licence applications once RBI completes the basic scrutiny.

"Work is still in progress. The Reserve Bank has received applications. It is doing first round of scrutiny. Then we will see how we go about it," Jalan said at AIMA event here today. Soon after Raghuram Rajan took charge as the 23rd Governor of RBI, he had said that an external committee would be headed by former central bank Governor Bimal Jalan to screen the 26 applications for bank licences.

(With additional inputs from PTI)



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Tata, SIA say airline to always remain under Indian control

Written By Unknown on Selasa, 24 September 2013 | 21.03

Tatas and Singapore Airlines have assured the government that control of their proposed airline venture would always remain in Indian hands, while seeking approval to offer passenger services on both domestic and international routes.

The new venture, proposed to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 percent stake, while Singapore Airlines would hold 49 percent stake with USD 49 million of foreign direct investment (FDI).

The two partners have sought approval from the Foreign Investment Promotion Board (FIPB) for the FDI. The proposed venture would also require approvals from other agencies like the DGFT, DGCA and CBEC, besides other ministeries and state government departments.

Also read: Tiger Airways gears up funds for SpiceJet bid, say sources

According to sources, FIPB has been informed that the new company would eventually have six board members, including four to be nominated by Tatas. The two partners have so far announced three board nominees -- two from the Tatas and one from SIA.

The companies had announced last week they have reached a pact to set up a new full-service airline. According to their FIPB application dated September 20, "the JV company will be engaged in the activity of operating domestic and international full service scheduled airline services in India."

Noting that the substantial ownership and effective control of the JV would be with Tatas with a 51 per cent stake, the application said that SIA would have a minority representation on the board and "will not be in a position to have 'de-facto' control over the Board".

"Therefore, the control of the JV company will remain in the hands of an Indian owned and controlled company." The chairman of the board would always remain a Tata nominee. Besides, the chairman and at least two-third of directors would always be Indian citizens.



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Fin Tech can be held guilty under Cos, Sebi Act: Expert

Financial Technologies can be held under both Companies Act and the Sebi Act says HP Ranina, corporate tax lawyer, for presenting unreliable profit and loss (P&L) accounts.

Speaking to CNBC-TV18 soon after Financial Technologies' auditor said that the FY13 earnings are no longer reliable , Ranina says that the company has allegedly committed a very serious offence by presenting false accounts.

Amarjit Chopra, former president, ICAI additionally says that though the case is unprecedented, the auditor will have to explain the circumstances under which he is withdrawing his report.

"The auditor will have to justify the circumstances under which he is withdrawing it. He will have to prove that this particular information was suppressed or probably he could have carried it out of context. Whether it was his negligence or something else this can come to light only little later," highlights Chopra.

Below is the edited transcript of Ranina and Chopra's interview to CNBC-TV18.

Q: If you are familiar with what is going on, now the auditors are saying that the FY13 earning that were revealed by the Financial Tech management is no longer reliable. Can you just run us through the implications and what this means?

Ranina: It means that the accounts cannot be treated as being correct, that the balance sheet and profit and loss (P&L) account do not present a true and fair view and if they are unreliable, then that means that the accounts have to be rejected. One cannot put them up for approval before the shareholders, because obviously the auditors have clarified that this is not the true picture.

Q: What do you expect to happen next? Do you see the Institute of Chartered Accountants of India (ICAI) stepping in? Do you see the management being holed up? Could this have legal implications now?

Ranina: Yes, of course. They can be holed up both under the Companies Act and by Sebi as well for presenting false accounts to their shareholders. It is a very serious offence. Obviously they may have not yet filed the tax return, that will come in a little later before their due date, but these accounts cannot be accepted.

As things stand today, if these accounts are presented to the shareholders then the management can certainly be holed up saying that you are presenting false account and obviously the shareholders will disapprove and not allow this thing to go through tomorrow.

Q: The NSEL Annual General Meeting (AGM) is tomorrow and the three point agenda which has been deferred includes the first one I mentioned to receive, consider and adopt the audited balance sheet as on 31st March, 2013 and the profit and loss account of the year ended. Second one was to ratify the payment of interim dividends and to declare a final dividend. Third most important considering with the chartered accountants and the auditor remains that they were looking to appoint Deloitte Haskins & Sells who are the current auditors of the company and the retiring statutory auditors of the company to hold office from the conclusion of the AGM. These three have been put on hold. Clearly, it means that tomorrow in the AGM the balance sheet which has been already out of 2013 remains insignificant for all the shareholders, am I right?

Ranina: You are absolutely right. If these items have been deferred, obviously they will go ahead with the AGM because there is a requirement of the Companies Act that you should see AGM within six months from the end of the financial year. So, what will happen tomorrow is that technically shareholders' meeting will be held, but the shareholders' meeting will be deferred to a subsequent date, because these three important items will not be considered tomorrow. By doing this, they will be able to get some more time to present the correct accounts once they are audited or re-audited by their auditors.

Q: I was told by sources within the auditing fraternity that because the NSEL audit report has been withdrawn as a result or a consequence of what has been going on with National Spot Exchange, the auditors to FTIL which is the promoter to NSEL have also said that the standalone as well as the consolidated financial statements of the company should no longer be relied upon so is this a chain reaction of sought because the subsidiaries audit is no longer valid, the audit report is no longer valid, the parent company was forced to do the same?

Chopra: I can only say that there is standard on auditing. That is 560. Before the date the financial statements are issued. It also talks about facts which become known to the auditor after the financial statements have been issued.

It really provides the remedy to the auditor in those cases and says the auditor will not apply and not perform any procedure then he will discuss the matter with management and wherever it is appropriate he will discuss the matter with people who are charged with the governance and determine whether the financial statements needs amendments or not.

After that if the management mends the financial statements, the auditor shall carry out the audit procedures in the circumstances on the amendment and he can even review the steps taken by the management. Post that he can report the company is well informed of the situation.

There is a clear cut paragraph within Auditing Standard 560 which provides all for those kind of contingencies. Yes, it is something unprecedented, it generally does not happen. I can only say that it has not been happening in India, abroad it has been happening somewhere or the other.

Q: I have been given to understand that the reason why Financial Technologies auditor has said that its financial statement both standalone and consolidated cannot be relied upon is because the NSEL audit report has been withdrawn. Financial Technologies is invested in NSEL hence either on the standalone basis or on a consolidated basis FTILs financial statements do not reflect true picture as it is today does that explanation make sense to you?

Chopra: I fully agree with you. It seems that it is a question of chain reaction here. The auditor should come out to explain what are the circumstances in which he is trying to withdraw his report.

Q: Is the auditor obliged to do that, because the press release that we have seen come in has come in from FTIL?

Chopra: I am very clear on that. The auditor will have to justify the circumstances under which he is withdrawing it. He will have to prove that this particular information was suppressed or probably he could have carried it out of context, whether it was his negligence or something else this can come to light only little later.

I will not be able to comment upon that, but as I said it is an unprecedented situation to be in, but the standard really provides for those kind of situations very rightfully.



21.03 | 0 komentar | Read More

Naresh Goyal to buy 1.11% stake in Jet from Tail Winds

Jet Airways Chairman Naresh Goyal will purchase over one per cent stake in the airline from another promoter entity, Tail Winds, for up to Rs 45 crore. In a regulatory filing, Goyal said that he would acquire 9,60,369 equity shares, accounting for a 1.11 per cent stake, in Jet Airways from Tail Winds on September 30.
    
Goyal currently holds 5,69,73,296 shares or 65.99 percent stake in Jet, which would rise to 67.1 percent after the proposed share purchase. On the other hand, Tail Winds holds 77,76,212 equity shares or 9.01 per cent stake in Jet, which would decline to 7.89 percent stake or 6,815,843 shares after the proposed transactions.

Also read: Tiger Airways gears up funds for SpiceJet bid, say sources

Jet Airways has proposed to sell 24 per cent stake in the company to Abu Dhabi-based Etihad Airways for Rs 2,058 crore. Under the proposed deal, Goyal would eventually have a 51 percent stake in the company, while 24 percent stake would be held by Etihad and the remaining 25 percent will be with public shareholders.

The proposed share transfer from Tail Winds, which used to hold majority of promoter shares till some months ago, to Goyal is believed to be part of an exercise related to the Etihad deal.

Regarding his proposed share purchase next week, Goyal said that the acquisition price "will not be higher by more than 25 percent of the volume weighted average price for a period of 60 trading days preceding the date of issuance of this notice as traded on the stock exchange where the maximum volume of trading in the shares of the Target Company (Jet Airways) are recorded during such period."

As per the regulatory filing, this average price works out to be Rs 368.06 per share, based on which the maximum acquisition price would be about Rs 460 per share. At this price, the proposed acquisition of about 9.6 lakh shares would be worth about Rs 45 crore.

Jet shares today closed at Rs 348, down 1.39 percent from the previous close at the NSE. "The rationale, if any, for the proposed transfer is inter-se transfer among the promoter group of the company,"the company said.

Jet Airways had on April 24 announced plans to sell 24 percent equity to Etihad Airways for about Rs 2,058 crore, the first ever investment by a foreign airline in an Indian carrier.



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Baring-Hexaware deal gets CCI nod

Approving one of the biggest deals in the Indian IT space, fair trade watchdog CCI has cleared Baring Private Equity's proposed acquisition of controlling stake in outsourcing firm Hexaware Technologies , saying the transaction will not adversely impact competition.

The Rs 2,745 crore proposed deal involves HT Global IT Solutions, part of Baring Private Equity Asia, purchasing 41.48 per cent stake of Hexaware Technologies following execution of 'share purchase agreements' and an additional stake of up to 26 per cent pursuant to a mandatory open offer.

Also read: Weak rupee to benefit only in short-term, says Tech Mahindra

In an order dated September 19, Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination under the (Competition) Act".

The fair trade regulator noted that while Hexaware is engaged in the business of providing information technology (IT) and Business Processing Outsourcing (BPO) services, none of the companies belonging to Baring Private Equity Asia, including HT Global have any investments or interests in firms engaged in giving IT and IT enabled solutions and having operations in India.

"The proposed combination, therefore, does not contemplate combination of two existing players in the Indian IT & IT enabled service industry," CCI said. Last month, HT Global had entered  into two separate 'Share Purchase Agreements'. One agreement was entered with Elder Infosystems and Elder Venture LLP and another one with GA Global Investments.

Following the execution of the agreements HT Global had approached CCI for its approval earlier this month. Most of the merger and acquisition deals in the country have to get clearance from the CCI, which has the mandate to address anti-competitive practices in the market place.



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India's domestic air traffic set to grow at 10%: Airbus

India's domestic air traffic is set to grow at the "fastest rate" of 10 percent against the global average of about five percent in the next two decades, triggering a demand for over 29,000 additional planes across the world, aircraft manufacturer Airbus said today. Air travel till 2032 will be fuelled by traffic to and from emerging markets like India, Brazil and China, and world air traffic will grow at 4.7 per cent annually, requiring 29,220 new passenger and freighter aircraft valued at nearly USD 4.4 trillion.

Also read: IndiGo eyes profit for 5th yr; eyes stronger FY14 growth

In its latest Global Market Forecast for the next 20 years (2013-2032), Airbus said: "Domestic flows are set to rise strongly, with domestic India growing at the fastest rate (nearly 10 percent), followed by China and Brazil (seven per cent)." The forecast said that "by 2032, Asia-Pacific will lead the world in traffic overtaking Europe and North America". "Today on average, a fifth of the population of the emerging markets take a flight annually and by 2032, this will swell to two-thirds," the major aircraft firm said. Overall, with an above world average traffic growth rate of 5.5 per cent, Asia-Pacific will account for 36 per cent of all new passenger aircraft demand, followed by Europe (20 percent) and North America (19 per cent), it said. "The attraction of air travel means that passenger numbers will more than double from today's 2.9 billion to 6.7 billion by 2032, clearly demonstrating aviation's essential role in economic growth," Airbus' Chief Operating Officer (Customers) John Leahy said while releasing the forecast. He said that in the very large aircraft market, dominated by super jumbo A-380, there is a requirement for 1,334 passenger aircraft valued at USD 519 billion. "Of these, 47 percent will be needed in the Asia-Pacific region, followed by the Middle East (26 per cent) and then Europe (16 per cent). Asia-Pacific's requirement for the A-380 is demonstrated by the region's growth in middle classes which is set to quadruple in Asia-Pacific in 20 years," Leahy said.



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Don't see rise in interest rates for infra sector: Feedback

Written By Unknown on Senin, 23 September 2013 | 21.03

Feedback Infra is upbeat on infrastructure sector. Co-Chairman RS Ramasubramaniam is of the view that RBI's monetary policy is positive for the macro economy, which in turn, will be beneficial for the infrastructure sector. Also, he also does not see a rise in the interest rates for the infrastructure sector as overall costs of funds for banks will not be impacted by the rate hike.

He also lauded the decision-making of several authorities for revival of the sector. "Seventeen of the 24 fuel supply agreements (FSAs) have been signed in the past two weeks, which is fantastic, Ramasubramaniam says. Also, the Cabinet Committee on Investment (CCI) has been going a good job for clearing project bottlenecks and all of these will reflect in about six months," he says in an interview to CNBC-TV18.

Also read: No revival till 2014 polls; rate hike to hit infra: Gammon

Below is the edited transcript of his interview to CNBC-TV18.

Q: What is your view on the RBI monetary policy and how would you rate it?

A: Raghuram Rajan stated that between the impact of the reduction of the Marginal Standing Facility (MSF) interest rate and the hike in the repo rate and doesn't take that this should impact the overall cost of fund of banks lending to infrastructure. I tend to agree with that.

Chairman of the Indian Banks Association had also made a stated that they would prefer to wait and watch in terms of looking at whether the cost of funds for banks are actually going to go up; what will be the liquidity pressures and whether they actually intend increasing the cost of debt for the infrastructure sector as a whole. I don't think there should actually be an increase in the cost of funds for the infrastructure sector.

There was a study by the RBI last year on the impact of a hike or a decrease in the interest rate for the infrastructure sector. They studied the decrease in investment in the sector in 2013 as compared to 2012 and came up with this interesting finding. It is not so much the interest rate hike or cut that impact it as the larger forces that play out in the infrastructure sector.

So how is the credit policy for infrastructure sector? It actually bodes good for the long-term, given the inevitable tapering off of the Fed Quantitative Easing (QE) three. What is good for the macro economy will certainly be good for the infrastructure sector. It is good for the overall infrastructure sector.

There are other factors playing out which actually bode good for the infrastructure sector in the coming few months. I am actually looking at the six month outlook for the infrastructure sector.

The current bottlenecks for the power sector, there were 24 projects that went under the project monitoring growth set up under the cabinet committee on investment (CCI). Out of 24 projects that were put up for FSA, 17 of those have been signed in the last two weeks. Three more have to be signed in the next 10 days.

We are waiting for some announcement on the highway developer concession agreements that have gone up and are between the finance ministry and the planning commission. If we can get word of that, it will bode well. If the bottlenecking of infrastructure projects is announced in the next six months and the project monitoring committee under CCI is doing a good job of that; it is good for the sector.

We are waiting for about Rs 1.7 lakh crore projects awards to be announced before March 2013 in power, in highways and expressways, in Ultra Mega Power Projects (UMPPs), in the airport five OMTs that are on the corner.

Overall, the credit policy, I don't think is negative for this sector. Whether it is good or not will be determined by forces beyond the credit policy which is really the debottlenecking of the sector as well as the award of contracts which are scheduled till March 2013. So net-net, positive on the policy and subsequent action that the government is taking.



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Will sell 15000-17000 flats over next 2-3 years: DLF

Real state player DLF  is likely to sell over 15,000-17,000 flats in the next three years, says Rajeev Talwar, group executive director of the company. He believes the company's sales are progressing after a successful Q1, where DLF sold 1.1 million square feet out of a total year target of 1.5 million square feet.

Also Read: Are theme-based homes the next fad in Indian realty?

He further added that given the current economic slowdown, the company's inventory is in the range of 10-12 million square feet. "At the time of execution, we had nearly 50-51 million square feet in progress with construction going on of 15 million square feet, which has definitely contracted over the last four-five years," he told CNBC-TV18 in an interview.

Meanwhile, he feels like  the automobile sector, the government should give some incentive to promote housing and construction as well.

Below is the verbatim transcript of Rajeev Talwar's interview on CNBC-TV18

Q: Do you have substantial amount of inventory? How much are you sitting on and what is the mean inventory that you have?

A: Some kind of analysis that seems to have gone haywire because this has taken into account what is usually called 'work in progress' and you have a large number of projects going on all over India and therefore there will be stocks that are sold, that are under preparation, that are yet to be handed over.

Over the last 18 months and the next 18 months put together, over a period of three years, we are handing over 15,000 to 17,000 flats which are going into the market. So, this analysis is done by some particular newspaper that you have taken and I hope it isn't equally wrong about everyone else. There is an inventory, the positive side one will see, maybe, it is a great signal for a stimulus package also which has been planned as they brought it in the newspapers today.

There needs to be an incentive to promote housing and construction and maybe that also needs to be included like some other sectors that are being talked off like the automobile sector. But all that put together there is a reason that demand is there, demand is pent-up, do not try to curb demand, we have seen various economists and since they all speak of inflation control being paramount in focus, one is inclined to believe them.

Since you are following up this market and you have been following up the India story for the last four-five years, we have been saying it all along that do not curb demand, open supply lines and that is not happening.

Q: What is your inventory at this point and what is your average inventory up until FY13? What would it be normally? What was it up until last year and what is it now?

A: The average inventory is normally at much lower levels and you always take into account what is being worked upon, what is being constructed upon.

I think you are very well aware of the Indian real estate business that everyone makes a sale on launch and then it takes a considerable period of time which is the international norms, either internationally sales are made of about to be completed or completed apartment.

In India the story is that yes, funding, which is done at the time of launch because it takes you about four-five years from purchase of land to launching a project and preparing every part of the technical details. So, this analysis is mainly based on figures that account for largely on apartments or real estate products. It could be commercial, retail; it could be plotted development which is already work in progress. It is not what is lying completed and unsold. Fortunately that is not the model that we follow in India.

Q: I am asking you only on the same parameter of work in progress, what is the inventory now, is it around Rs 18,000 crore as the report indicated? On an average, what is the work in progress the same time last year, what would have been the inventory including work in progress? I am asking you to take the same standard for both years; today, how much is it and what was it last time?

A: I am giving you an equally clear reply that you are based mainly on the amount of crore worth of inventory; I would give it in work in progress, in million square feet.

At the peak of our execution we had projects of nearly 50-51 million square feet in progress with construction going on of 15 million square feet or so. This is certainly contracted over the last four-five years, keeping in view the economic slowdown and work in progress, it would be anywhere from 10-12 million square feet, sales are progressing along because we had a very successful Q1, where we sold 1.1 million square feet out of a total year target of 1.5. So, sales are looking up, people are investing but repo rate hike, not dilution of rates on equated monthly installments (EMIs) is making impact and I am sure they are true for everyone.

Q: Could you give us an update on Aman Resorts and the deal?

A: This has always been in speculation for the last year-year-and-a-half and a large amount of interest being shown into it after Adrian (Zecha) stepped of it. At the same time complex negotiations, complex valuations, better results coming in for the chain over the last one year, their debt being totally in dollar and therefore, not affected by the rupee slide.

We are hoping for the best and there is a full team looking after that, they are negotiating it. So, let them get on with various parties who are showing interest, at the moment upwards of more than half a dozen. So, we will have to wait rather than enter into a world of speculation.



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Will sell MCF stake if Mallya keeps mum on JV plan: Zuari

In what may come as yet another blow to liquor baron Vijay Mallya, Zuari chairman Saroj Poddar has said he will sell the Mangalore Chemical Fertilizers stake if Mallya fails to communicate on the promised MCF-Zuari joint venture (JV).

Speaking to CNBC-TV18, Poddar, who holds over 16 percent in MCF, said that he consulted Mallya before buying the stake. Mallya, had then agreed to form as a joint venture with Zuari.

Also read: Firmly in control of Mangalore Chemicals: Vijay Mallya

"Now, if Vijay Mallya has changed that view then he needs to communicate that. And then the board will take a decision of what it feels is the right decision for the company," adds Poddar who is also the chairman of Adventz Group.

Poddar has said he is willing to sell the MCF stake in the open market or even to Deepak Fertilisers if Mallya doesn't give any clarity on the proposed JV. Deepak Fertilisers and Zuari have been jostling to take over the Rs 3000-crore company.

Below is the edited transcript of Poddar's interview to CNBC-TV18.

Q: Let us start with Mangalore Chemicals & Fertilizers (MCF), if you could give us the current situation as it stands right now?

A: We have a little over 16 percent stake in MCF and the status is really that there is no change since the acquisition by us and by Deepak. The ball is in Vijay Mallya's court and he has to take a decision of how to move forward.

Q: Why did you buy stake in MCF and are you looking to collaborate with Deepak Fertilisers at all?

A: Let me clarify, I bought the shares after consulting Vijay Mallya and after an agreement with him that he will not divest them but enter into a joint venture with Zuari and that was the motive behind our acquisition of the shares. Now, if Vijay Mallya has changed that view then he needs to communicate that. And then the board will take a decision of what it feels is the right decision for the company.

Q: So are you looking to sell stake to either Vijay Mallya or perhaps even Deepak Fertilizer?

A: There is no discussing , if Mallya is interested in buying my stake then let him make an offer. We will certainly sell the stake if Mallya is not willing to enter into a join venture because we don't want to hold this as a pure investment portfolio.

Q: Was there any strategic intent for buying MCF stake?

A: We were certainly looking at it because we felt that MCF and Zuari are so close to each other and the market being common, it would make a lot of sense for these companies to work together. We could add a lot of value to MCF and that is what Vijay and I had discussed and we had agreed in principle that we shall work this company MCF into a joint venture between UB Group and Adventz Group.

Q: So have you heard lately from Vijay Mallya on this supposed JV?

A: No he hasn't yet taken a decision and I am waiting to hear from him.

Q: Kalindee Rail Nirman is a stock which is in focus, what is the update on that and the open offer proposal?

A: We have around 36 percent today in Kalindee and the open offer proposal is with Securities and Exchange Board of India (Sebi). We are awaiting Sebi's approval. As soon as Sebi approves the open offer, the open offer will start and we hope to complete this within the next month or two.

Q: So can we assume that perhaps you are the white knight in this entire triangle or it is purely strategic?

A: No, I am not a white knight. These acquisitions have not been done in the status of a white knight. We believe these are strategic investments for our businesses and which is why these investments were made. As far as Kalindee is concerned, we are today a product company in Texmaco . Kalindee gets us into the service sector, so we strongly believe that a consolidated product and service company adds much greater value to Texmaco as well as to Kalindee.

Q: If the investment is purely strategic in nature will you perhaps sell stake in MCF if the JV doesn't workout?

A: Let me clarify, Zuari bought these shares after consulting with Vijay Mallya and based on that discussion that we should work towards a JV in MCF. Mallya was keen that we should work together, so he accepted my proposal and he called me to say that I could bid at the State Bank of India ( SBI ) shares and that is why I bought the SBI shares. Now after Deepak bought the shares obviously Mallya is still not sure how he wishes to proceed. So if he is not interested in a JV or a divestment then we are not interested in holding these shares. We will divest it at the best possible price Zuari can get.

Q: What is the broader strategy now for your group?

A: Our strategy is that we would want to go into the areas where we already have a significant market share and that comprises primarily of engineering and agriculture, fertilizers, seeds and agrochemicals. These are the areas of our growth areas and these are the areas where the group will invest additional sums of money and expand capacities.



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