Shriram Transport announces NCD issue, targets Rs 1500 cr

For a three-year bond, the company is offering an yearly yield of 11 per cent, while on five-year bond the yield is offered is 11.25 percent. Senior citizens will get an additional yield of 0.25 percent per annum across all tenors.

Used truck financier  Shriram Transport Finance today launched a Rs 500-crore non convertible debenture issue, offering a yield of over 10.71 percent to retail investors under multiple tenors.

"We have an option to retain subscriptions till Rs 3,000 crore. But we will close the issue after we get subscriptions of Rs 1,500 crore," company's managing director and chief executive Uday Revankar told reporters here. This is the first issue by a private company under the "shelf prospectus" route, wherein a company can file a single prospectus and hit the market with multiple issues.

Also Read: Mutual Funds' exposure to IT stocks hit 9-months low in May

Investors can choose between the three, five and seven years tenors and the yields offered range from 10.71 percent for a five-year investment under the monthly coupon option, to 11.50 percent for a 7-year investment under a yearly coupon.

For a three-year bond, the company is offering an yearly yield of 11 percent, while on five-year bond the yield is offered is 11.25 percent. Senior citizens will get an additional yield of 0.25 percent per annum across all tenors. The issue is open between July 2 and July 22, but may be closed whenever the company feels.

Fifty percent of the issue is reserved for the retail investors, and 30 percent is for high networth individuals, while the rest is divided between institutional investors. Proceeds of the issue will be used both for retiring existing debt and funding ongoing lending activities, said its chief financial officer Parag Sharma.

He said the company's overall cost of funds is at 10.75 percent and the leverage does not exceed six times. During the fiscal, Revankar said the company will focus on expanding its automall and used construction equipment verticals.

After witnessing a correction in the last fiscal due to slowdown in the economy, the commercial vehicles segment will pick up post monsoons once demand from the mining sector comes in, Revankar said.

Shriram Trans stock price

On June 30, 2014, Shriram Transport Finance Corporation closed at Rs 903.05, up Rs 7.70, or 0.86 percent. The 52-week high of the share was Rs 1021.30 and the 52-week low was Rs 465.20.

The company's trailing 12-month (TTM) EPS was at Rs 55.72 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 16.21. The latest book value of the company is Rs 364.65 per share. At current value, the price-to-book value of the company is 2.48.

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Emami to buy out Todi's stake in AMRI in a month

The West Bengal government has a notional one percent stake in the hospital venture, while the balance would be held by the Emami Group.

The Emami group would buy out 33 percent stake held by the Todis' of  Shrachi Group in the AMRI hospital chain within a month.

"Emami group will buy out the stake held by the Todis within a month," Emami group chairman R S Agarwal told reporters at the Merchants Chamber of Commerce here today.

The decision to buy out the stake in AMRI, Agarwal said, was that the Todis wanted to sell their shareholding and also because of the severe losses incurred after the fire at Dhakuria hospital in December 2010.

The West Bengal government has a notional one percent stake in the hospital venture, while the balance would be held by the Emami Group.

The Dhakuria branch of AMRI, the key revenue driver, was closed after the fire in which 91 patients were killed.

Recently, the state government gave permission to start the OPD clinic, with patient admission planned to start shortly as the authorities had obtained the fire license and securing the health approval in process.

"It would take some time for AMRI to make profits," Agarwal said.

AMRI has a total 1,000 beds in its three units - Dhakuria, Salt Lake and Bhubaneswar.

Work on the Rs 500-crore Rajarhat project would start shortly, Agarwal added.

Emami stock price

On June 30, 2014, Emami closed at Rs 507.45, up Rs 3.05, or 0.60 percent. The 52-week high of the share was Rs 539.40 and the 52-week low was Rs 393.40.

The company's trailing 12-month (TTM) EPS was at Rs 17.55 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 28.91. The latest book value of the company is Rs 44.96 per share. At current value, the price-to-book value of the company is 11.29.

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RIL can challenge SAT ruling in HC: Ranina

SAT has dismissed Reliance Industries' appeal against the Sebi order rejecting RIL's consent application in the case involving trading in shares of group company Reliance Petroleum in 2007.

Retrospective amendment or retrospective effect can only be given if it is clarificatory in nature and not if it creates a problem.

HP Ranina

Corporate Tax Lawyer

The Securities Appellate Tribunal (SAT) on Monday dismissed Reliance Industries ' appeal against the Sebi order rejecting RIL's consent application in the case involving trading in shares of group company Reliance Petroleum in 2007.

Reacting to the news, corporate lawyer HP Ranina said that Reliance can go to the High Court now and challenge the SAT ruling.

"At the moment it means that Reliance has lost the appeal and we have to see what reasons have been given by SAT. Once that is clear then we would be able to come to some conclusion as to what is the basis foundation for dismissing this appeal," he said.

Below is the transcript of HP Ranina's interview with CNBC-TV18's Reema Tendulkar, Nigel D'Souza and Sajeet Manghat.

Reema: How would you read this judgement and what is the implication or the way ahead for Reliance Industries now?

A: I have not got the details of the judgement in the sense that what reasons the Securities Appellate Tribunal (SAT) has given to dismiss the Reliance appeal.

Obviously it sets a certain precedent that hereafter this type of situation will cannot be appealed against. Therefore SAT has set a precedent. In future it will certainly have an effect.

Reliance may go to the High Court now and challenge the SAT ruling before the High Court. So, we have to now wait and watch what decision the High Court takes. At the moment it means that Reliance has lost the appeal and we have to see what reasons have been given by SAT. Once that is clear then we would be able to come to some conclusion as to what is the basis foundation for dismissing this appeal.

Sajeet: What the judge has actually said is that since the new consent guidelines which were notified on January 2014 have come into affect on a retrospective basis, that is from April 2007. The application of Reliance seeking Sebi to look at the consent application was rejected on those grounds. Do you think Reliance would be having a case to go to Supreme Court and challenge the entire retrospective effect of that Sebi notification as far as consent application is concerned?

A: Retrospective effect obviously can only be done normally if it is clarificatory in nature. Therefore whether their lawyers advice them to go to the Supreme Court is a different issue altogether. I think Reliance will certainly try to do that. Certainly they will take a chance with the Supreme Court, I feel.

Retrospective amendment or retrospective effect can only be given if it is clarificatory in nature and not if it creates a problem.

So, this is an issue which will have to be considered.

(Disclosure: Reliance Industries has made an open offer for the takeover of Network18, which owns Moneycontrol.com and other digital, print and TV channels).

Reliance stock price

On June 30, 2014, Reliance Industries closed at Rs 1014.70, up Rs 1.65, or 0.16 percent. The 52-week high of the share was Rs 1142.50 and the 52-week low was Rs 765.00.

The company's trailing 12-month (TTM) EPS was at Rs 68.00 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 14.92. The latest book value of the company is Rs 609.63 per share. At current value, the price-to-book value of the company is 1.66.

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Indian Bank declares 47% dividend for 2013-14

A decision to this effect was taken at the bank's annual general meeting held in the city recently, Chennai-based Indian Bank said in a statement.

Shareholders of public sector  Indian Bank have approved final dividend of 47 per cent for the year ending March 31, 2014.

A decision to this effect was taken at the bank's annual general meeting held in the city recently, Chennai-based Indian Bank said in a statement.

"Shareholders approved payment of dividend of 47 percent for the year 2013-14 of which bank has made payment of interim dividend of 30 percent on January 25, 2014," it said.

Addressing shareholders at the bank's eighth annual general meeting, Indian Bank Chairman and Managing Director, T M Bhasin said the bank's total business stood at Rs 2.86 lakh crore as on March 31, 2014 and earned net profits at Rs 1,159 crore.

"The bank is well capitalised and as on March 31, 2014, the CRAR as per Basel III was 12.64 percent. The bank has the head room of Rs 8,646 crore to raise Tier II bonds," he said.

Shares of the company ended at Rs 183.05 apiece, up by 1.69 percent over previous close in BSE.

Indian Bank stock price

On June 30, 2014, Indian Bank closed at Rs 183.05, up Rs 3.05, or 1.69 percent. The 52-week high of the share was Rs 198.90 and the 52-week low was Rs 60.50.

The company's trailing 12-month (TTM) EPS was at Rs 24.93 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 7.34. The latest book value of the company is Rs 298.40 per share. At current value, the price-to-book value of the company is 0.61.

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ITC gets sanction for merger of Wimco's biz

The Kolkata-based company has businesses across FMCG, hotels, paperboards and packaging, tobacco products and information technology.

Diversified group  ITC today said its scheme for demerger of the non-engineering business of its subsidiary Wimco Ltd, for the merger with itself, has been given a go-ahead by the courts.

"...the Scheme of Arrangement between Wimco Ltd (Wimco) and the Company and their respective shareholders for demerger of the Non-Engineering Business comprising Safety Matches Business and Agri (Forestry) Business of Wimco into the Company (the Scheme), has been sanctioned by the Hon'ble High Court of Judicature at Bombay and the Hon'ble High Court at Calcutta," ITC Ltd said in a filing to the BSE.

The Scheme has become effective from June 27, it added. ITC along with Russell Credit Ltd, a wholly owned unit, holds 98.21 percent of Wimco's share capital. Apart from the agri and matches businesses, Wimco has interest in manufacturing packaging machinery.

The Kolkata-based company has businesses across FMCG, hotels, paperboards and packaging, tobacco products and information technology. The ITC scrip closed at Rs 324.90, up 1.58 percent, on the BSE.

ITC stock price

On June 30, 2014, ITC closed at Rs 324.90, up Rs 5.05, or 1.58 percent. The 52-week high of the share was Rs 386.75 and the 52-week low was Rs 285.40.

The company's trailing 12-month (TTM) EPS was at Rs 11.05 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 29.4. The latest book value of the company is Rs 33.03 per share. At current value, the price-to-book value of the company is 9.84.

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SBI, BoB seek treatment of gold deposits as part of CRR/SLR

The country's two biggest state-run lenders today pitched for treating a portion of their gold deposits as part of the mandatory cash reserve ratio (CRR) or statutory liquidity ratio (SLR), both of which banks consider as non-productive.

"Is it possible that the regulator can treat a little bit of our gold deposits as CRR or SLR? After all, gold is also a store of value," State Bank of India Chairperson Arundhati Bhattacharya said at a Gem & Jewellery Export Promotion Council banking summit.

With gold imports having pressurised the current account gap in the recent past, there is a greater need to make use of gold available in the country and make it more liquid, she stressed.

She claimed that SBI  is the largest player in the gold deposit scheme segment and is struggling to deploy the entire deposits in productive assets. "We also find that we are not able to deploy the entire gold that we get. There is really no incentive for us to go ahead and get more of these deposits now so as to make gold more liquid," she said, reiterating her demand.

CRR, at 4 percent now, is the portion of deposits parked by banks with the Reserve Bank of India that earns no interest, while SLR, at 22.5 percent, is the amount of deposits to be mandatorily invested in recognised securities such as government bonds and other liquid assets.

Also read:  SBI's Budget wishlist: Target job creation, MSMEs, infra

However, the average SLR holding in the system is 27 percent as banks make treasury play a source of boosting bottom lines when there is poor growth in advances or bad loans rise.

Concurring with Bhattacharya, Bank of Baroda  Chairman and Managing Director S S Mundra said it "makes sense" to treat a part of banks' gold deposits as CRR and SLR. "When banks are holding gold, it is of value. I think it makes sense to bring under CRR/SLR. It also fits the larger pattern that ultimately we are talking about unearthing the gold and bringing it to productive sectors in the economy as a whole. The gold that is readily available can be brought under recognition," Mundra told reporters.

Data on the gold deposits held by the two banks was not immediately available.

Successive chiefs of SBI, the country's largest lender, have been targeting the zero-interest yielding CRR component. Bhattacharya's predecessor Pratip Chaudhuri had waged a spirited public fight to abolish CRR.

Speaking at the event, Financial Services Secretary GS Sandhu acknowledged that the ministry has received several representations on ways to better utilise gold deposits and it is actively looking into the matter.

He stressed the need to monetise gold held by the public to help reduce imports of the yellow metal, which can be a drain on the nation's foreign-exchange resources and lead to a wider current account deficit (CAD).

Curbs on gold imports helped narrow the CAD to 1.7 percent of GDP at USD 32.4 billion in 2013-14 from 4.7 percent at USD 87.8 billion in 2012-13.

"So much gold is lying idle. In some ways if we can monetise this, may be our imports will come down drastically. Something in that direction we will have to think of," Sandhu said.

SBI stock price

On June 27, 2014, State Bank of India closed at Rs 2636.75, down Rs 18.75, or 0.71 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 145.88 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.07. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.66.

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IFC bets on NCDs in debt financing for NBFCs

IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.

Non Convertible Debentures (NCDs) have recently become the preferred route of investment for multilateral agency International Finance Corporation (IFC) in debt for non banking financial companies (NBFCs).

"Recently we have started debt financing through NCDs to NBFCs. The first one is AU financiers, a Rajasthan-based NBFC of USD 25 million. We are looking at more opportunities through this route," IFC senior investment officer A K Agarwal said here today on the sidelines of a financial markets conclave by CII.

IFC was holding talks with Magma Fincorp and Cholamandalam for subscribing to NCDs of these NBFCs, he said. "Microfinance institutions (MFIs) will also get benefit of this," Agarwal said.

Asked about the reason for NCDs as the new preferred route for debt financing, Agarwal said this instrument was an option due to restrictions on ECBs for NBFCs. "As per ECB guidelines, NBFCs were not allowed to raise Dollars. IFC can only invest in Dollars as we do not have an India balance sheet. But under the NCD guidelines Dollars can be converted in spot market and can be invested in rupee lending as FIIs," Agarwal said.

He said IFC remained committed to MFIs and will continue to invest in the sector. Agarwal declined to comment on whether the agency was planning any hike in its stake in the MFI Bandhan once it was converted to a bank.

Bandhan, a city based MFI had received in-principal approval for a banking licence and IFC had close to 11 percent stake. Total exposure of IFC in India was roughly USD 4.5 billion. Of that around 1/3 was equity and 2/3 debt. Financial sector exposure is estimated to be around 30-35 per cent. "We have been investing more than a billion dollar year-on-year," Agarwal added.

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PNC Infratech bags Rs 441 crore contract

The contract involves rehabilitation and upgradation of the 80 kilometre road stretch of Sonauli-Gorakhapur Section of National Highway 29 in Uttar Pradesh on EPC (engineering, procurement, construction) Basis, the company said in a statement.

PNC Infratech Limited has bagged a Rs 441 crore contract from the Ministry of Road Transport and Highways for rehabilitation and upgradation of the 80 KM road on the National Highway connecting Uttar Pradesh.

Also Read: IRB Infra inks Rs 2,300 cr pact with NHAI for Haryana road

The contract involves rehabilitation and upgradation of the 80 kilometre road stretch of Sonauli-Gorakhapur Section of National Highway 29 in Uttar Pradesh on EPC (engineering, procurement, construction) Basis, the company said in a statement.

The project cost is estimated at Rs 441 Crore and is slated to be completed in two years, the company said.

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CCI imposes Rs 1 cr fine on Thomas Cook, Sterling Holidays

Fine has also been imposed on Thomas Cook Insurance Services (India) Ltd, a party to the deal. The Rs 870 crore-deal involving merger of Sterling Holiday Resorts (India) with travel firm Thomas Cook (India) has already been cleared by Competition Commission of India.

The Competition Commission has imposed Rs 1 crore penalty on three entities, including  Thomas Cook and Sterling Holiday Resorts , for carrying out certain market purchases related to their deal before seeking the fair trade watchdog's approval.

The imposition of penalty by CCI was disclosed by Thomas Cook (India) in a regulatory filing today. Fine has also been imposed on Thomas Cook Insurance Services (India) Ltd, a party to the deal. The Rs 870 crore-deal involving merger of Sterling Holiday Resorts (India) with travel firm Thomas Cook (India) has already been cleared by Competition Commission of India.

However, the fine relates to market purchases carried out as part of the deal between February 10 and 12 this year. CCI had issued a show cause notice to all the three entities stating that "market purchases, being part of the composite combination (under the competition regulations), were consummated before giving notice to the Commission and as such invited penalty under the (Competition) Act".

Also Read: Competition Commission slaps Rs 3cr penalty on Tesco

Through these purchases, Thomas Cook Insurance Services (India) Ltd acquired more than 90.26 lakh shares, representing 9.93 per cent stake of Sterling Holiday Resorts (India) Ltd. The entities had filed notice seeking CCI nod for the deal on February 14, two days after the purchases. According to a regulatory filing by Thomas Cook (India) today, CCI was of the opinion that the facts suggested that the conduct of the parties was not such that attracts severe penalty.

"Considering the facts and circumstances of the case, the Commission...considered it appropriate to impose a relatively nominal penalty of Rs 1 crore on the parties," Thomas Cook said in the filing to the BSE. In March this year, CCI had approved the multi-structured deal saying it was not likely to have an adverse impact on competition in the country.

Under the deal, Chennai-based Sterling Holiday Resorts' (India) resorts and some other business would be transferred to Thomas Cook Insurance Services, a subsidiary of Thomas Cook (India). Further, Thomas Cook would issue certain equity shares of the subsidiary to Sterling Holiday's shareholders. Besides Sterling Holiday, with its residual business, would merge into Thomas Cook (India). In lieu, certain amount of shares of the travel firm would be issued to shareholders of Sterling Holiday, as per the ratio set out.

Among others, CCI had observed that "the business of hotel services across India is relatively fragmented and there are different channels for availing the hotel services along with the presence of large number of big players as well as intermediaries/agents".

Thomas Cook stock price

On June 27, 2014, Thomas Cook (India) closed at Rs 115.00, up Rs 0.60, or 0.52 percent. The 52-week high of the share was Rs 128.95 and the 52-week low was Rs 48.15.

The company's trailing 12-month (TTM) EPS was at Rs 1.46 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 78.77. The latest book value of the company is Rs 24.08 per share. At current value, the price-to-book value of the company is 4.78.

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Gas leak, blast at ship breaking yard in Bhavnagar, 5 dead

The incident comes a day after a similar blast in a GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday.

Five persons were killed and ten others injured after an explosion occurred at the Alang ship breaking yard in Bhavnagar district in Gujarat.

The blast was triggered by a gas leak at plot no 140, where ship breaking working was in progress.

The injured labourers have been shifted to a hospital.

The incident comes a day after a similar blast in a  GAIL gas pipeline in the East Godavari district of Andhra Pradesh. The blast in the GAIL pipeline left 14 people dead and many others injured on Friday .

The fire in the incident had also hit nearby houses, shops and coconut plantations.

GAIL stock price

On June 16, 2014, GAIL India closed at Rs 433.25, up Rs 16.45, or 3.95 percent. The 52-week high of the share was Rs 439.00 and the 52-week low was Rs 273.00.

The company's trailing 12-month (TTM) EPS was at Rs 34.49 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 12.56. The latest book value of the company is Rs 225.49 per share. At current value, the price-to-book value of the company is 1.92.

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IOB proposal to raise Rs 1,200 cr through QIP gets nod

The shareholders approved the proposal during the 14th Annual General Meeting of the bank, a bank statement said.

Shareholders of the public sector  Indian Overseas Bank   today approved its proposal to raise Rs 1,200 crore through qualified institutional placements (QIP).

The shareholders approved the proposal during the 14th Annual General Meeting of the bank held here, a bank statement said.

Also read: IOB seeks Rs 3,500 crore capital support from govt

"...the shareholders approved the proposal for raising of capital by way of QIP up to Rs 1,200 crore, including share premium, subject to regulatory approvals," it said. In his address, bank Chairman and Managing Director M Narendra said: "there will be increased attention on reduction of NPAs through intensive recovery measures throughout the year and ensuring maintenance of asset quality".

IOB stock price

On June 27, 2014, Indian Overseas Bank closed at Rs 76.40, down Rs 1.8, or 2.3 percent. The 52-week high of the share was Rs 89.90 and the 52-week low was Rs 37.15.

The company's trailing 12-month (TTM) EPS was at Rs 4.87 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 15.69. The latest book value of the company is Rs 130.90 per share. At current value, the price-to-book value of the company is 0.58.

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See FY15 rev top Rs 1.5Kcr; 30% jump in vols: Maha Seamless

Maharashtra Seamless  expects a 30-40 percent jump in volumes and revenues above Rs 1500 crores in FY15 and above Rs 2000 crore for FY16. The company saw hike in production, which in turn lead to lower manufactguring costs per tonne and higher profits said CFO, RK Gupta in an interview to CNBC-TV18's Nigel D'Souza and Reema Tendulkar.

With regards to safeguard duty, he said the industry has made a representation to the Directorate General of Safeguard for imposition of the duty and his hopeful of the safeguard duty being imposed by August 15.

Moreover, he is bullish on the outlook for the company and said the order book remains healthy and covers the production for the  next two-three months.

Below is the transcript of RK Gupta's interview with Reema Tendulkar & Nigel D'Souza on CNBC-TV18.

Nigel: There has been a lot of talk of safeguard duty imposed on seamless pipes given that imports from China were hitting your business? Can you please elaborate?

A: There has been a sudden surge of imports into India especially because of dumping by the Chinese and also other manufacturers. So the industry had put a representation to the Directorate General of Safeguard for imposition of safeguard duty. The DG Safeguard has recommended imposition of 25 percent duty to the government and it is now under consideration of the Commerce Ministry. So their special committee would be reviewing it and making a final recommendation to government.

We as industry are pretty hopeful that it should go through because that's the need of hour. We have put substantial amount of investment into the country for selling these pipes into India and not for exports, though we are also exporting substantial part of our production.

We see no reason why this duty should not come through which would be in the larger interest of the country because it is providing a lot of employment plus it would be safe valuable foreign exchange also.

Nigel: How long will it take for this safeguard duty to come into being?

A: It is already delayed and we understand that this committee would be meeting shortly and taking a decision. We are pretty hopeful that the committee should give its recommendation by July end and the duty should be in force by August 15.

Reema: Have you seen a pickup in your sales volumes or in your capacity utilisation and currently what is the targeted level for FY15?

A: We do not give any guidance for production but we were doing about 270,000 when we had single plant and last year we did about 153,000 metric tonne, so this year we should see a 30-40 percent jump and next year we should again see a 30-40 percent jump vis-à-vis level that we do in the current year once the sales get restored.

Reema: Will all this result into better margins given that in the last quarter they had dipped to 5 percent?

A: Absolutely because once the production level goes up our manufacturing cost per tonne will get lower and that would mean higher profitability for the company.

Nigel: What about your order book. Take us through that with regard to your global as well as your domestic business?

A: We are getting orders for line pipe but for the oil country tubular goods (OCTG) because of the final investigation report the orders are slow. Those orders will come once the final determination is done. Of course nothing is anticipated but the customers are waiting for the final order. But the book remains healthy in the sense that we are covered for next two-three months production though on the OCTG side the order book is little slow.

Reema: In FY13 you did revenues of close to about Rs 1,700 crore but last year it was down to sub Rs 1300 crore. What is the revenue guidance for FY15?

A: It should be in excess of Rs 1,500 crores for this year and next year we would like to do in excess of Rs 2,000 crores.

Mah Seamless stock price

On June 27, 2014, Maharashtra Seamless closed at Rs 296.80, up Rs 10.15, or 3.54 percent. The 52-week high of the share was Rs 346.65 and the 52-week low was Rs 151.05.

The company's trailing 12-month (TTM) EPS was at Rs 14.50 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 20.47. The latest book value of the company is Rs 435.54 per share. At current value, the price-to-book value of the company is 0.68.

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Nexium generic next big opportunity for Ranbaxy: Angel

With Ranbaxy  rallying post the USFDA approval for Diovan generic, a USD 3.4 billion opportunity for the company, Sarabjit Kaur Nangra of Angel Broking sees the Diovan generic approval via Ohm Laboratories a positive for both, Sun Pharma  as well as Ranbaxy.

The Nexium Generic is a bigger opportunity for Ranbaxy than Valcyte generic, she says in an interview with CNBC-TV18's Ekta Batra.

Given the Sun-Ranbaxy merger, Nangra sees an upside potential of 8-10 percent in Ranbaxy.

Also read:  USFDA boost for Ranbaxy; see akin deal for Nexium: Dandekar

Below is the edited transcript of the interview:

Q: It is Sun Pharmaceutical Industries which is rallying so I just want to ask you about what sort of upside a consolidated profit and loss statement and balance sheet would this bring to Sun Pharma as well as Ranbaxy Laboratories, based on the fact that the merger will goes through without any problems?

A: This is definitely positive in terms of Ranbaxy, so it boosts the profitability of Sun Pharma consequently going forward. More than this opportunity which will materialise this year, if series of such opportunities keep on materialising for Ranbaxy and it comes out of the problems in terms of the US Food and Drug Administration (USFDA) or longer term, that will be major boost for Sun Pharma. So, this news is positive in that direction but we will be monitoring those milestones to say that this will be not that dilutive in terms of profitability for Sun Pharma after the merger.

Q: How much more confident are you that Ranbaxy will now we able to monetise Valcyte generic as well as Nexium generic and between the two, which one is the more lucrative opportunity that you will be looking out for closely?

A: As of now, this is done through Ohm Laboratories and with Toansa and other facilities under scrutiny; these opportunities will definitely come but will take some time to get monetised. In terms of the bigger one, Nexium proves to be a much bigger opportunity for Ranbaxy going forward.

Q: I wanted to ask you about the third party supplier – it is suppose to be Divis Laboratories which is the third party supplier, the active pharmaceutical ingredients (API) supplier. Would you have a view on Divis Labs and how much of an opportunity it could be for them?

A: Normally APIs for a pharma company would constitute as the cost of production level is around 50 percent. I do not track Divis but in case they are the supplier then given the size, it makes good contribution for the company for the year.

Q: What is your rating on both the stocks?

A: I do not cover Divis so it is an unrated stock for me. As far Ranbaxy is concerned, we believe given the merger, it has an upside potential of 8-10 percent.

Q: And Sun Pharma?

A: Accumulate Sun Pharma, it has risen up significantly and target is around Rs 706 as of now.

Ranbaxy Labs stock price

On June 16, 2014, Ranbaxy Laboratories closed at Rs 478.55, up Rs 13.90, or 2.99 percent. The 52-week high of the share was Rs 505.00 and the 52-week low was Rs 253.95.

The latest book value of the company is Rs 3.41 per share. At current value, the price-to-book value of the company was 140.34.

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India's future bright, prosperous under Modi: Cisco Systems

Cisco Systems is also looking at investing in electronic manufacturing sector in India. Speaking after the meeting, John Chambers said that India has a bright and prosperous future under the Narendra Modi government.

Foreign investors are brimming with optimism with a new government at the helm. Cisco Systems chairman and CEO, John Chambers met the Department of Industrial Policy and Promotion (DIPP) secretary Friday to discus participation in smart cities and industrial corridors.

Cisco Systems is also looking at investing in electronic manufacturing sector in India. Speaking after the meeting, Chambers said that India has a bright and prosperous future under the Narendra Modi government.

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Cipla unit gets 345 mn rand contract from South Africa

Under the contract, which will run from July 2014 to April 2017, the company will supply drugs including Beclate 100, Becalate 200 and Asthavent 200.

Drug major  Cipla has got a contract worth 345 million rand (Rs 195 crore) from the South African government.

Cipla Medpro, the South African subsidiary of the Indian firm, has been awarded a 345 million rand share of the South African government's national respiratory tender, the company said in a statement.

Under the contract, which will run from July 2014 to April 2017, the company will supply drugs including Beclate 100, Becalate 200 and Asthavent 200.

"This is the second-largest government tender awarded to Cipla in the last three years," the company said.

Cipla Medpro CEO Paul Miller said patients across South Africa will benefit from increased access to Cipla's respiratory programmes and products.

"This successful tender is yet again testament to the Cipla team's commitment to excellence and quality and the company ethos of advancing healthcare for all," he added.

Last year, Mumbai-based Cipla completed the buyout of Cipla Medpro for an aggregate consideration of Rs 2,707 crore. Cipla Medpro is the third-largest South African pharmaceutical company founded in 1993.

Cipla stock price

On June 27, 2014, Cipla closed at Rs 437.30, up Rs 11.05, or 2.59 percent. The 52-week high of the share was Rs 450.00 and the 52-week low was Rs 366.70.

The company's trailing 12-month (TTM) EPS was at Rs 17.29 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 25.29. The latest book value of the company is Rs 127.76 per share. At current value, the price-to-book value of the company is 3.42.

21.03 | 0 komentar | Read More

SAT verdict in RIL insider-trading case on Jun 30

Reliance has been fighting against market watchdog Sebi in the alleged insider-trading case since December 2010 and since last year the regulator's exclusion of the company from the new consent mechanism.

A full bench of the Securities Appellate Tribunal (SAT), headed by presiding officer JP Devdhar, today concluded the hearing on the nearly four-year-long insider trading case against  Reliance Industries and said it will pronounce the order on June 30.

Reliance has been fighting against market watchdog Sebi in the alleged insider-trading case since December 2010 and since last year the regulator's exclusion of the company from the new consent mechanism.

Also read: Deferment of gas price revision to impact PSU oil cos more: Moily

The case dates back to 2008, when Sebi alleged insider trading against RIL while merging its subsidiary Reliance Petroleum (RPL) with itself in 2007, and the Mukesh Ambani-led company challenged the Sebi charges at the SAT in December 2010.

The case also involves Reliance challenging the maintainability of the Sebi decision's to exclude it from the consent mechanism under the new norms issued for the same in January 2013.

Reliance stock price

On June 26, 2014, Reliance Industries closed at Rs 1011.95, down Rs 38.85, or 3.7 percent. The 52-week high of the share was Rs 1142.50 and the 52-week low was Rs 765.00.

The company's trailing 12-month (TTM) EPS was at Rs 68.00 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 14.88. The latest book value of the company is Rs 609.63 per share. At current value, the price-to-book value of the company is 1.66.

21.04 | 0 komentar | Read More

BMW rolls out diesel variant of X5 at Rs 70.9 lakh

Initial deliveries of the all-new BMW X5 in India will commence by June as an overwhelming demand for the vehicle in the market has pushed the waiting period to three months, BMW said in a statement.

German luxury carmaker BMW today rolled out a diesel variant of its locally manufactured Sports Utility Vehicle X5, from its Chennai plant at an ex-showroom price of Rs 70.9 lakh.

Initial deliveries of the all-new BMW X5 in India will commence by June as an overwhelming demand for the vehicle in the market has pushed the waiting period to three months, BMW said in a statement.

The diesel variant of the BMW X5 xDrive30d model, which was launched last month, is being locally produced at BMW's plant in Chennai.

Also read:  Jaitley extends excise cut for auto, cap goods till Dec 31

"The third generation BMW X5 has received tremendous customer response and excitement since it was first displayed at the Delhi Auto Expo 2014," BMW Group India President Philipp von Sahr said. The company might also consider ramping up the production to meet the huge demand in the Indian market, he added.

"The team at the facility will build the all-new BMW X5 with uncompromising engineering. We are confident that the BMW X5 produced in Chennai will further increase our momentum in the Indian luxury car segment," said Robert Frittrang, Managing Director of BMW's Chennai plant.

21.04 | 0 komentar | Read More

Investors ready $1 bn war chest for office assets in India

In June, Brookfield paid about Rs 3300 crore (USD 552.76 million) for a 60 percent stake in six parks from Unitech Corp Parks and a 40 percent stake in four of the six from Unitech Ltd

Foreign private equity funds and pension funds are among investors that over the last 12 months have committed to invest more than USD 1 billion to buy or build commercial property in India as the government works to finalise rules governing real estate investment trusts (REITs).

-In June, Brookfield paid about Rs 3300 crore (USD 552.76 million) for a 60 percent stake in six parks from Unitech Corp Parks and a 40 percent stake in four of the six from  Unitech Ltd .

-In May, The Xander Group, an emerging markets investor, partnered with a consortium of investors lead by Dutch pension fund asset manager APG Asset Management N.V. to invest USD 300 million, with an option to increase it to USD 500 million, to buy leased office assets in big cities including Mumbai and Delhi.

Also Read: Mumbai realty to see 10-15% price rise on infra push, says JLL

-In November, Singapore warehouse and industrial park developer Ascendas Pte Ltd announced plans to invest in Indian real estate, focussing on office space, with a target asset size of S$600 million (USD 479.88 million). Singapore's sovereign wealth fund GIC will be a key investor.

-In November, Canadian Pension Plan Investment Board said it would invest USD 200 million in an 80 percent joint venture with Mumbai-based developer, Shapoorji Pallonji Group to buy leased office buildings.

-In July, Qatar Investment Authority decided to invest USD 300 million in a special purpose vehicle formed by developer RMZ Corp to buy and build leased office assets, mainly in south India. Baring Private Equity has a 21 percent stake in the vehicle which it bought in 2012 for 5 billion rupees.

(USD 1 = 1.2503 Singapore dollars)

(USD 1 = Rs 59.70)

Unitech stock price

On June 26, 2014, Unitech closed at Rs 33.40, down Rs 1.3, or 3.75 percent. The 52-week high of the share was Rs 38.60 and the 52-week low was Rs 10.86.

The company's trailing 12-month (TTM) EPS was at Rs 0.30 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 111.33. The latest book value of the company is Rs 37.72 per share. At current value, the price-to-book value of the company is 0.89.

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Tata-led Neotel signs broadband deal in South Africa

Tata-led South African telecoms operator Neotel has secured a ground breaking deal with the State Information Technology Agency (SITA) and the

Western Cape provincial government to provide broadband services across the province over the next three years. The project is a first-of-its-kind in South Africa and has strict guidelines to deliver sites and service levels in a true public-private partnership, by leveraging the skills, resources and expertise of each party for the provision of broadband services across the Province, the company said.

"The Western Cape government is focused on realising its vision for the province and Neotel is extremely pleased to play the role of a partner to make the vision a reality," the Managing Director and CEO of Neotel, Sunil Joshi, said.

Also read:  Telecom industry's wish-list from budget

"Neotel is delighted and humbled to be chosen to deploy fibre optic infrastructure across the Province for the provision of broadband and voice services to Government departments and also make available these services to communities, businesses and households to create a connected Province.

The initiative is a direct outcome of the Western Cape Provincial Government's vision 2030 to let every citizen benefit from broadband in their daily lives, he said.

As part of the project, Neotel will provide connectivity to over 2 000 sites across the province to a mix of government buildings, schools, healthcare institutions, and libraries.

"We also expect many large, medium and small businesses, and other government departments to benefit from the infrastructure and connectivity as it is rolled out for their broadband, voice, data centre and VPN requirements," Joshi added.

As part of this strategic project, Neotel has also partnered with the Department of Economic Development and Tourism to provide free Wi-Fi services to local communities at a site in each ward during the project, continuing with its commitment to help with social development and uplift communities in the region.

Neotel will also offer its leading edge voice, broadband, VPN and other innovative communication services to local businesses.

This will include small or large, government departments and institutions in the Province and households as it expands its wireless and fibre network across the Western Cape Province, thereby developing the communities, and through enterprise development, exposing entrepreneurs to new opportunities for growth and developing sustainable skills, it said.

Tata Communications  is the majority stakeholder in Neotel, which was established about a decade ago as a competitor to the fixed-line state operator Telkom.

Tata Comm stock price

On June 16, 2014, Tata Communications closed at Rs 365.70, up Rs 12.65, or 3.58 percent. The 52-week high of the share was Rs 392.40 and the 52-week low was Rs 136.90.

The company's trailing 12-month (TTM) EPS was at Rs 19.03 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 19.22. The latest book value of the company is Rs 282.77 per share. At current value, the price-to-book value of the company is 1.29.

21.04 | 0 komentar | Read More

Brokerages react negatively to gas price hike deferral

Brokerages have reacted negatively to the government's move to defer a hike in gas prices. They are in agreement that the deferral will be a negative for sentiment in the near-term. CNBC-TV18's Ushang Sheth gets the breakdown of the different views.

21.04 | 0 komentar | Read More

Flipkart to tie-up with different manufacturing clusters

Flipkart has about 3,000 sellers, most of them from SMEs. The company intends to grow the seller base to 12,000 by the end of this fiscal.

Flipkart, the largest e-commerce marketplace in India, on Friday said it is holding talks to tie-up with manufacturing clusters such as Tirupur and Ludhiana as part of bringing more sellers on-board to meet the strong growth in demand.

"We are targeting manufacturing clusters and would sign up partnerships with Surat, Agra and Ludhiana, where synthetic apparels and leather items are manufactured," Ankit Nagori,Vice President, marketplace, Flipkart, said.

Also Read: E-tailers growth ensnared in India's logistics jungle

Stating that the company was in talks with entrepreneurs in Agra and already have more than 100 sellers in Surat onboard, he said Flipkart has about 3,000 sellers, most of them from Small and Medium Enterprises. The company, which has already tied-up with the Federation of Indian Micro, Small and Medium Enterprises and National Centre for Design and Product Development, will grow the seller base to 12,000 by the end of this fiscal, he said.

Ankit and his team, who were here to hold talks with local trade bodies and entrepreneurs on how online marketplaces can help MSMEs expand their business and brand nationwide, said Flipkart aimed to increase its market-share in the clothing segment to 70 percent from the present 50 percent.

While the largest Chinese e-commerce marketplace alibaba.com has about 20 lakh SMEs on-board, it is less than20,000 in India, Ankit said Flipkart has 18 million registered users and online retail was expected to touch Rs 50,000 crore by 2016.It was projected to grow at a whopping 50-55 percent per annum for the next three years, he claimed.

21.03 | 0 komentar | Read More

Naidu woos Hero MotoCorp to set up plant in Andhra Pradesh

Hero MotoCorp had this week announced that it was planning to set up its sixth manufacturing plant in South India to cater to the domestic market and take its overall annual capacity to 12 million units.

Andhra Pradesh government is wooing country's largest two-wheeler maker  Hero MotoCorp to
set up a plant in the state.

N Chandrababu Naidu, the newly-elected Chief Minister of the residuary state of Andhra Pradesh, has called Hero MotoCorp MD & CEO Pawan Munjal to set up their new proposed South India plant in the state.

Also Read: Columbia a big mkt in Latin America after Brazil: Hero Moto

The Industry Secretary would explore the opportunity, he said on the micro blogging site twitter.
"Spoke to Pawan Munjal, MD&CEO, Hero MotoCorp, to set up their plant in AP. Our industries secretary &their team will explore the opportunity," Naidu had yesterday tweeted.

Hero MotoCorp had this week announced that it was planning to set up its sixth manufacturing plant in South India to cater to the domestic market and take its overall annual capacity to 12 million units.

"We are looking to set up a plant in South India. It will be utilised to service the market there. We are scouting for land at the moment," Pawan Munjal had told PTI. He, however, did not share details regarding the timeline for the completion as well as the location of the plant.

At present, Hero MotoCorp has three manufacturing facilities -- at Gurgaon and Daruhera in Haryana and Haridwar in Uttarakhand -- with a total capacity of 6.9 million units annually.

It is set to commission the fourth facility at Neemrana in Rajasthan with an investment of around Rs 400 crore, thereby taking its total installed capacity to over 7.65 million units. The company, which sold 6.25 million two-wheelers in 2013-14, is also in the process of building its fifth facility in Halol, Gujarat at an investment of Rs 1,100 crore. The Gujarat plant is envisaged to have an annual capacity of 1.8 million units and is expected to go on-stream by 2015-16.

Hero Motocorp stock price

On June 16, 2014, Hero Motocorp closed at Rs 2610.75, up Rs 21.90, or 0.85 percent. The 52-week high of the share was Rs 2775.05 and the 52-week low was Rs 1565.95.

The company's trailing 12-month (TTM) EPS was at Rs 105.62 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 24.72. The latest book value of the company is Rs 356.32 per share. At current value, the price-to-book value of the company is 7.33.

21.03 | 0 komentar | Read More

The economics of affordable housing

Affordable Housing is the new buzz in the real estate sector, companies are looking closely at this model to ensure higher margins, given the new emphasis by the Modi government to provide housing to all citizens.

The New Model in Town:

Affordable housing is the new buzz word, especially after the new government in Delhi has spelt out a vision of housing for every citizen. The word 'Affordable Housing' is loosely used by all and no one really understands what actually is affordable housing. It is also most commonly confused with Low Cost Housing. No, one in the industry is talking about low-cost housing, but all are talking of affordable housing. And affordability differs from city to city and town to town. People residing in Metros may find a Rs 50 lakh home affordable, but unfortunately, he may not find one in the Metro. 

HDFC Chairman, Deepak Parekh in his address to the shareholders raised the opportunity affordable housing will provide. He says, "developers must provide more affordable housing in the price range of Rs 15 to 40 lakh. They need to focus not on the high-end luxury segment, but on building more one and two-bedroom apartments, which is where the real need is. Even though margins may be lower, the turnaround time is much faster in the affordable housing segment. Affordable housing is a volume game, which is why the speed of obtaining approvals becomes more compelling."

For affordable housing to be successful, speed is the essence. And Deepak Parekh is right that it is a volumes game, and speed in providing approvals could reduce cost by 20 percent and improve margins – infact, many believe that ROEs could be as high as 25 percent.

And that is evident from the statement of Mahindra Group Chairman, Anand Mahindra who believes, "The fact is that it is a 150 billion dollar opportunity for private enterprise and the only point I want to make today is that what we call shared value projects such as these, which will enable the broad vision of this government to become a new reality. Shared value simply means that you can do well and do good at the same time. SO it's not CSR, this is not being driven only by purpose without profit.'

But even though it may be a shared value, the margins that could be earned will be much higher than traditional real estate activity.

Don't confuse it with Low Income Housing:

Low Income housing is often confused with Affordable housing.  Low Income Housing involves flats with less than 500 sq ft and cost between Rs 5 lakhs to Rs 15 lakhs. There are tier-2 and tier-3 cities where many are making low income housing projects. These projects may not have all the accessories but are bare skeleton flats. The Reserve Bank so far recognises housing loans of up to Rs 25 lakhs in metros and Rs 15 lakhs in other cities.  HFCs and banks hardly find any projects in metros that fit the Rs 25 lakhs bill. And with urbanisation expanding its geography, there is a call to enhance this limit to Rs 40 lakhs.

The Salary Income Maths:

Firstly, anyone earning less than Rs 30,000 per month cannot afford the so called affordable housing. That's because, a 500 sq ft of apartment would be sold for atleast Rs 3000 per square feet, making the cost of the apartment at a minimum of Rs 15 lakhs. For a salaried individual, earning a take home salary of Rs 30,000 - Rs 1 lakh per month. The available income to pay EMI for the home mortgage is between Rs 15000 to Rs 50000 per month. At this EMI the loan available to a person is between Rs 15 to 50 lakhs. It is important to note that the average free cash that one is assuming is 50 percent of the take-home. Which is not always the case? Given Savings rate has fallen in the last 5 years, and inflation has forced individuals to tap into their free-cash and savings to meet the cost of living. So an affordable housing project has to be in the region of Rs 15 lakhs to Rs 40 lakhs and should satisfy the return economics.

The Infrastructure Link:

For the affordable housing model to be successful, it has to have a credible infrastructure linkage. Affordable Housing projects can only be successful if satellite towns are constructed around Metros & tier 1 cities. These cities should have excellent connectivity to these satellite towns, thereby allowing expansion of the city and migration of urbanites from core of the city to suburbs. Infrastructure will also play a important role in ensuring that distance is not a deterrent for affordable housing.

Affordable Economics:

The affordable model is likely to work only if the sales price of the apartment is between Rs 3000 – Rs 7000 per square feet. Now, one might not be able to find any houses in cities like Mumbai, but there is enough potential for this price range across other cities. The land cost for these projects vary from Rs 500 to Rs 2000 per square feet.  The model will work when land cost is financed via equity and development cost is financed using pre-sales and debt. This is another place where a huge opportunity exists for Private Equity to step in, which will finance land cost via equity and development via mezzanine debt. In fact, many PEs are already following this model. HDFC Chairman, Deepak Parekh wants RBI to allow banks and HFCs to fund land transactions. Since the returns expected from these projects are much higher than traditional infrastructure projects and gestation period is at maximum of 3 years. Land cost as percentage of total cost may be between 70-80 percent in metro cities like Mumbai, but in smaller cities & towns in varies between 25-40 percent.

Sales Price/ sq ft	3000	7000
Cost of Land or Equity per sq ft	500	2000
Approval Cost per sq ft	100	200
Cost of Construction per sq ft	1500	2500
Construction Finance per sq ft	750	1250
Interest Cost for 3 yrs per sq ft	550	1450
Total Cost per sq ft	1900	4900
Return per sq ft	1100	2100
* Rough figures

 

These projects currently also face approval cost which ranges from Rs 100 to rs 200 per square feet. These approval cost currently are with respect to municipality or municipal corporation approvals or speed money to expedite the approvals. Construction cost varies from Rs 1500 per square feet for a Ground + 3 storied building to Rs 2500 per square feet for a Ground + 15 storied building.

Typically, developer fund development cost of the project using 50 percent debt and 50 percent pre-sales fund flows.  The volumes and price is factor that will play an important role in how fast the developer is able to sell the project to the investors. The project will require debt in the range of Rs 750 to Rs 1250 per sq ft.

The cost of financing the debt typically ranges between 12-15 percent for real estate developers. And hence the interest cost of Rs 550 to Rs 1450 per square feet over a 3 year period. The total cost of the project so far including the cost of equity and debt comes to Rs 1900 to Rs 4900 per square feet. In the end the developer ends up with a return of Rs 1100 square feet on a sales price of Rs 3000 and Rs 2100 on a sales price of Rs 7000 per square feet.

Obviously, the success of the model depends extensively on cost of land. Developers who get the land at significantly lower rates will be able to make handsome returns in the model. A land cost of Rs 1 crore per acre translates in to Rs 230 per square feet. Thereby, any land cost above 5-8 crores will reduce the return one can make from the affordable housing model. As the cost of land escalates the returns of the affordable model declines and developers will need to migrate to a luxury housing project model to maintain same margins. 

21.03 | 0 komentar | Read More

Young Turks meets Kailash Katkar, Founder of Quick Heal

Young Turks caught up with Kailash Katkar the Founder of Quick Heal at the EY World Entrepreneur Summit in Monte Carlo who set up his Pune-based anti-virus company back in 1993.

Young Turks caught up with Kailash Katkar the Founder of Quick Heal at the EY World Entrepreneur Summit in Monte Carlo who setup his Pune based anti-virus company back in 1993. Today the brand is one to reckon with globally and the venture is looking at the possibility of an IPO with a reported valuation of between Rs 2500 crore and Rs 3000 crore. We also found out about the early years of competing against global players and Quick Heal's entry into the developed markets and the mobile space.

21.03 | 0 komentar | Read More

Bombay Dyeing unveils new 'change' campaign

135-year-old textile brand Bombay Dyeing unveiled a new campaign that breaks ground for its refreshing and progressive ideas

1

135 year old textile brand Bombay Dyeing unveiled a new campaign that breaks ground for its refreshing and progressive ideas. Storyboard finds out what Bombay Dyeing hopes to achieve with these.

21.03 | 0 komentar | Read More

Bombay Dyeing unveils new 'change' campaign

135-year-old textile brand Bombay Dyeing unveiled a new campaign that breaks ground for its refreshing and progressive ideas

1

135 year old textile brand Bombay Dyeing unveiled a new campaign that breaks ground for its refreshing and progressive ideas. Storyboard finds out what Bombay Dyeing hopes to achieve with these.

21.03 | 0 komentar | Read More

Flipkart to tie-up with different manufacturing clusters

Flipkart has about 3,000 sellers, most of them from SMEs. The company intends to grow the seller base to 12,000 by the end of this fiscal.

Flipkart, the largest e-commerce marketplace in India, on Friday said it is holding talks to tie-up with manufacturing clusters such as Tirupur and Ludhiana as part of bringing more sellers on-board to meet the strong growth in demand.

"We are targeting manufacturing clusters and would sign up partnerships with Surat, Agra and Ludhiana, where synthetic apparels and leather items are manufactured," Ankit Nagori,Vice President, marketplace, Flipkart, said.

Also Read: E-tailers growth ensnared in India's logistics jungle

Stating that the company was in talks with entrepreneurs in Agra and already have more than 100 sellers in Surat onboard, he said Flipkart has about 3,000 sellers, most of them from Small and Medium Enterprises. The company, which has already tied-up with the Federation of Indian Micro, Small and Medium Enterprises and National Centre for Design and Product Development, will grow the seller base to 12,000 by the end of this fiscal, he said.

Ankit and his team, who were here to hold talks with local trade bodies and entrepreneurs on how online marketplaces can help MSMEs expand their business and brand nationwide, said Flipkart aimed to increase its market-share in the clothing segment to 70 percent from the present 50 percent.

While the largest Chinese e-commerce marketplace alibaba.com has about 20 lakh SMEs on-board, it is less than20,000 in India, Ankit said Flipkart has 18 million registered users and online retail was expected to touch Rs 50,000 crore by 2016.It was projected to grow at a whopping 50-55 percent per annum for the next three years, he claimed.

21.03 | 0 komentar | Read More

Naidu woos Hero MotoCorp to set up plant in Andhra Pradesh

Hero MotoCorp had this week announced that it was planning to set up its sixth manufacturing plant in South India to cater to the domestic market and take its overall annual capacity to 12 million units.

Andhra Pradesh government is wooing country's largest two-wheeler maker  Hero MotoCorp to
set up a plant in the state.

N Chandrababu Naidu, the newly-elected Chief Minister of the residuary state of Andhra Pradesh, has called Hero MotoCorp MD & CEO Pawan Munjal to set up their new proposed South India plant in the state.

Also Read: Columbia a big mkt in Latin America after Brazil: Hero Moto

The Industry Secretary would explore the opportunity, he said on the micro blogging site twitter.
"Spoke to Pawan Munjal, MD&CEO, Hero MotoCorp, to set up their plant in AP. Our industries secretary &their team will explore the opportunity," Naidu had yesterday tweeted.

Hero MotoCorp had this week announced that it was planning to set up its sixth manufacturing plant in South India to cater to the domestic market and take its overall annual capacity to 12 million units.

"We are looking to set up a plant in South India. It will be utilised to service the market there. We are scouting for land at the moment," Pawan Munjal had told PTI. He, however, did not share details regarding the timeline for the completion as well as the location of the plant.

At present, Hero MotoCorp has three manufacturing facilities -- at Gurgaon and Daruhera in Haryana and Haridwar in Uttarakhand -- with a total capacity of 6.9 million units annually.

It is set to commission the fourth facility at Neemrana in Rajasthan with an investment of around Rs 400 crore, thereby taking its total installed capacity to over 7.65 million units. The company, which sold 6.25 million two-wheelers in 2013-14, is also in the process of building its fifth facility in Halol, Gujarat at an investment of Rs 1,100 crore. The Gujarat plant is envisaged to have an annual capacity of 1.8 million units and is expected to go on-stream by 2015-16.

Hero Motocorp stock price

On June 20, 2014, Hero Motocorp closed at Rs 2520.00, down Rs 17.85, or 0.7 percent. The 52-week high of the share was Rs 2775.05 and the 52-week low was Rs 1565.95.

The company's trailing 12-month (TTM) EPS was at Rs 105.62 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 23.86. The latest book value of the company is Rs 356.32 per share. At current value, the price-to-book value of the company is 7.07.

21.03 | 0 komentar | Read More

The economics of affordable housing

Affordable Housing is the new buzz in the real estate sector, companies are looking closely at this model to ensure higher margins, given the new emphasis by the Modi government to provide housing to all citizens.

The New Model in Town:

Affordable housing is the new buzz word, especially after the new government in Delhi has spelt out a vision of housing for every citizen. The word 'Affordable Housing' is loosely used by all and no one really understands what actually is affordable housing. It is also most commonly confused with Low Cost Housing. No, one in the industry is talking about low-cost housing, but all are talking of affordable housing. And affordability differs from city to city and town to town. People residing in Metros may find a Rs 50 lakh home affordable, but unfortunately, he may not find one in the Metro. 

HDFC Chairman, Deepak Parekh in his address to the shareholders raised the opportunity affordable housing will provide. He says, "developers must provide more affordable housing in the price range of Rs 15 to 40 lakh. They need to focus not on the high-end luxury segment, but on building more one and two-bedroom apartments, which is where the real need is. Even though margins may be lower, the turnaround time is much faster in the affordable housing segment. Affordable housing is a volume game, which is why the speed of obtaining approvals becomes more compelling."

For affordable housing to be successful, speed is the essence. And Deepak Parekh is right that it is a volumes game, and speed in providing approvals could reduce cost by 20 percent and improve margins – infact, many believe that ROEs could be as high as 25 percent.

And that is evident from the statement of Mahindra Group Chairman, Anand Mahindra who believes, "The fact is that it is a 150 billion dollar opportunity for private enterprise and the only point I want to make today is that what we call shared value projects such as these, which will enable the broad vision of this government to become a new reality. Shared value simply means that you can do well and do good at the same time. SO it's not CSR, this is not being driven only by purpose without profit.'

But even though it may be a shared value, the margins that could be earned will be much higher than traditional real estate activity.

Don't confuse it with Low Income Housing:

Low Income housing is often confused with Affordable housing.  Low Income Housing involves flats with less than 500 sq ft and cost between Rs 5 lakhs to Rs 15 lakhs. There are tier-2 and tier-3 cities where many are making low income housing projects. These projects may not have all the accessories but are bare skeleton flats. The Reserve Bank so far recognises housing loans of up to Rs 25 lakhs in metros and Rs 15 lakhs in other cities.  HFCs and banks hardly find any projects in metros that fit the Rs 25 lakhs bill. And with urbanisation expanding its geography, there is a call to enhance this limit to Rs 40 lakhs.

The Salary Income Maths:

Firstly, anyone earning less than Rs 30,000 per month cannot afford the so called affordable housing. That's because, a 500 sq ft of apartment would be sold for atleast Rs 3000 per square feet, making the cost of the apartment at a minimum of Rs 15 lakhs. For a salaried individual, earning a take home salary of Rs 30,000 - Rs 1 lakh per month. The available income to pay EMI for the home mortgage is between Rs 15000 to Rs 50000 per month. At this EMI the loan available to a person is between Rs 15 to 50 lakhs. It is important to note that the average free cash that one is assuming is 50 percent of the take-home. Which is not always the case? Given Savings rate has fallen in the last 5 years, and inflation has forced individuals to tap into their free-cash and savings to meet the cost of living. So an affordable housing project has to be in the region of Rs 15 lakhs to Rs 40 lakhs and should satisfy the return economics.

The Infrastructure Link:

For the affordable housing model to be successful, it has to have a credible infrastructure linkage. Affordable Housing projects can only be successful if satellite towns are constructed around Metros & tier 1 cities. These cities should have excellent connectivity to these satellite towns, thereby allowing expansion of the city and migration of urbanites from core of the city to suburbs. Infrastructure will also play a important role in ensuring that distance is not a deterrent for affordable housing.

Affordable Economics:

The affordable model is likely to work only if the sales price of the apartment is between Rs 3000 – Rs 7000 per square feet. Now, one might not be able to find any houses in cities like Mumbai, but there is enough potential for this price range across other cities. The land cost for these projects vary from Rs 500 to Rs 2000 per square feet.  The model will work when land cost is financed via equity and development cost is financed using pre-sales and debt. This is another place where a huge opportunity exists for Private Equity to step in, which will finance land cost via equity and development via mezzanine debt. In fact, many PEs are already following this model. HDFC Chairman, Deepak Parekh wants RBI to allow banks and HFCs to fund land transactions. Since the returns expected from these projects are much higher than traditional infrastructure projects and gestation period is at maximum of 3 years. Land cost as percentage of total cost may be between 70-80 percent in metro cities like Mumbai, but in smaller cities & towns in varies between 25-40 percent.

Sales Price/ sq ft	3000	7000
Cost of Land or Equity per sq ft	500	2000
Approval Cost per sq ft	100	200
Cost of Construction per sq ft	1500	2500
Construction Finance per sq ft	750	1250
Interest Cost for 3 yrs per sq ft	550	1450
Total Cost per sq ft	1900	4900
Return per sq ft	1100	2100
* Rough figures

 

These projects currently also face approval cost which ranges from Rs 100 to rs 200 per square feet. These approval cost currently are with respect to municipality or municipal corporation approvals or speed money to expedite the approvals. Construction cost varies from Rs 1500 per square feet for a Ground + 3 storied building to Rs 2500 per square feet for a Ground + 15 storied building.

Typically, developer fund development cost of the project using 50 percent debt and 50 percent pre-sales fund flows.  The volumes and price is factor that will play an important role in how fast the developer is able to sell the project to the investors. The project will require debt in the range of Rs 750 to Rs 1250 per sq ft.

The cost of financing the debt typically ranges between 12-15 percent for real estate developers. And hence the interest cost of Rs 550 to Rs 1450 per square feet over a 3 year period. The total cost of the project so far including the cost of equity and debt comes to Rs 1900 to Rs 4900 per square feet. In the end the developer ends up with a return of Rs 1100 square feet on a sales price of Rs 3000 and Rs 2100 on a sales price of Rs 7000 per square feet.

Obviously, the success of the model depends extensively on cost of land. Developers who get the land at significantly lower rates will be able to make handsome returns in the model. A land cost of Rs 1 crore per acre translates in to Rs 230 per square feet. Thereby, any land cost above 5-8 crores will reduce the return one can make from the affordable housing model. As the cost of land escalates the returns of the affordable model declines and developers will need to migrate to a luxury housing project model to maintain same margins. 

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Young Turks meets Kailash Katkar, Founder of Quick Heal

Young Turks caught up with Kailash Katkar the Founder of Quick Heal at the EY World Entrepreneur Summit in Monte Carlo who set up his Pune-based anti-virus company back in 1993.

Young Turks caught up with Kailash Katkar the Founder of Quick Heal at the EY World Entrepreneur Summit in Monte Carlo who setup his Pune based anti-virus company back in 1993. Today the brand is one to reckon with globally and the venture is looking at the possibility of an IPO with a reported valuation of between Rs 2500 crore and Rs 3000 crore. We also found out about the early years of competing against global players and Quick Heal's entry into the developed markets and the mobile space.

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Railway passenger fare hiked by 14%, freights up 6.5%

The government has increased the Railway passenger fare by 14.2 percent and freight charges by 6.5 percent with effect from today. The hike comes in just days ahead of the Budget.

The Railways board on Thursday had recommended a hike in fares but Railway Minister Sadananda Gowda was expected to meet Prime Minister Narendra Modi before taking a final call.

Also Read: Expect message on retrospective tax in Budget: Sitharaman

On June 14, Prime Minister Narendra Modi had warned of "tough decisions" over the next couple of years to improve the country's financial health. While addressing the meeting of BJP workers in Goa, the PM had said that those measures may not go down well with some sections. It seems the government has now started rolling some of those measures sooner than expected.

Cash-strapped Railways had announced hike on May 16 in both passenger fares and freight rates by 14.2 percent and 6.5 percent, respectively, from May 20. However, the decision was rolled back within hours leaving the job to the new government.

The UPA government had left passenger fares unchanged in the Interim Railway Budget in February ahead of the general elections.

Today's decision is likely to give an additional revenue of around Rs 8000 crore to the national transporter, which is losing Rs 30 crore a day. The cross-subsidy on passenger fares has touched Rs 26,000 crore. But the fare hike is likley to bring some respite to the financial heath of Railways.

Even Commerce Minister Nirmala Sitharaman in an interview to CNBC-TV18 had said that Railways need money in a big way, whether it is for "modernisation, coach building, safety of passengers, safety of lines or freight."

Reacting to the fare hike, former chief minister of Bihar Nitish Kumar said the Railway Minister should have presented the hike in the Budget as increasing fare just days before it sets up a wrong precedent.

Industry reaction

Sanjay Ladiwala of Cement Association feels the freight rate hike will impact cement companies' bottomline.

He said that with the demand being low and the monsoon coming, it may not be possible to pass on the hike to consumers. Thus, prices are not likely to support the manufacturers as they will have to absorb it, which doesn't go too well for the industry.

"I think the industry will have to gather all facts and see what the implications are and accordingly may request the government for a review of the fares. But on the whole, the hikes don't look good," he told CNBC-TV18.

SP Tulisan feels the rail fare hike is positive in the longer term as the sector has not seen any new investments coming in, which was a deterrent to overall growth of the industry. He sees the rail stocks reacting positively on the back of this hike, however, expects cement, steel and power stocks to have a negative impact.

HM Bangur of Shree Cements  said though the decision "means a cost-push, but it is very natural and was long overdue". He sees an increase of Rs 8-10 per cement bag post the fare hikes, which he thinks the company will have to absorb for few months before passing it on the consumers.

"The government means what PM Modi had said that he is going to administer some bitter medicine for the long-term health of the economy and I think the Railway Minister is doing just that," said senior journalist and author Vivian Fernandes.

He expects the Rail Minister to follow up the fare hike by announcing credible reform measures like competition, capacity expansion and dedicated freight corridors. "Railways must function as the low-cost freight carrier for the economy," feels Fernandes.

Siddhartha Sanyal, economist at Barclays, said that if a very-short term view is taken then the decision definitely becomes inflationary, "but some of these things are not totally unexpected".

Shree Cements stock price

On June 16, 2014, Shree Cements closed at Rs 7209.45, down Rs 14.65, or 0.2 percent. The 52-week high of the share was Rs 7981.50 and the 52-week low was Rs 3412.65.

The company's trailing 12-month (TTM) EPS was at Rs 228.07 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 31.61. The latest book value of the company is Rs 1103.32 per share. At current value, the price-to-book value of the company is 6.53.

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Elecon's order book at Rs 1200cr; Rs 600cr from NTPC solely

National Thermal Power Corporation ( NTPC ) has cancelled Rs 400 crore tender won by Tecpro Systems . Larsen and Toubro ( L&T ), Bharat Heavy Electricals ( BHEL ), McNally Bharat Engineering  and Elecon Engineering  are likely to be frontrunners for NTPC tender rebidding.

Elecon's CMD Prayasvin Patel believes Tecpro Systems's non-performance in various other tenders has caused NTPC to cancel the order.

Elecon's order book currently stands at Rs 1200 crore out of which Rs 600 crore worth orders are from NTPC, he says in an interview with CNBC-TV18's Nigel D'Souza and Reema Tendulkar.

Below is the edited transcript of the interview:

Q: National Thermal Power Corporation (NTPC) has cancelled a Rs 400 crore tender which was earlier won by Tecpro Systems. Any idea with regard to this order, will you all be bidding for this particular order?

A: Yes, we have been evaluating it and most probably, we should be bidding for it.

Q: Did you bid for it in the past?

A: Yes.

Q: Are you aware why NTPC has cancelled this order with Tecpro Systems?

A: This is due to non-performance of the company that they have been experiencing in various other tenders which is why they have gone in for a rebidding.

Q: Are you aware of what the margins will be in this tender and it's a Rs 400 crore tender but how will the revenues from this flow out to whoever wins it?

A: Normally, the margins in this field at this juncture are on extremely low levels and we believe that it would continue to be at low levels for at least one additional year in which any of the biddings would take place.

Q: Do you expect any more orders to flow in from NTPC?

A: We believe that right now NTPC is reevaluating lot of other vendors who have not been performing and probably they may also go in for retendering.

Q: So you will be attempting to rebid in most of them?

A: Yes.

Q: And the quantum of those orders approximately?

A: That would be difficult to say right now because it depends on NTPC as to who they feel are the non-performing companies will also go in for rebidding.

Q: When is this particular tender opening up for bids?

A: They normally take a period of one month or so.

Q: We also understand that companies like L&T, BHEL will also be looking to bid for this particular tender so what differentiates Elecon and have you all previously worked on such a similar contract for NTPC?

A: Yes we have bid for a lot of NTPC jobs, we are one of the oldest companies in this field and it is our experience which counts because these are tailor-made projects where the more experience you have the better systems you can design with less problems during maintenance and operations.

Q: So currently what will be the size of various orders that you are currently doing for NTPC?

A: Right now we have two major projects which we are doing for NTPC and the amount would be approximately close to Rs 600 crore.

Q: What is your total order book currently?

A: Total order booking should be approximately around Rs 1200 crore including Rs 600 crore of NTPC.

Q: Overall, how is FY15 shaping up as we have started the year?

A: It is still a touch year and things would improve during the last half to last quarter of the year.

Q: Last year, your margins came at around 12 percent. Are you looking to maintain that or do you expect further pressure on your margins because the last quarter of last year was quite good?

A: We expect to improve our margins this year because of the higher output and better performance as we have done a lot of cost cutting and we believe that this would pay more results.

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State Bank of Travancore board okays Rs 485 cr rights issue

The board on March 26 had given an in-principle approval to raise Rs 629 crore from the rights issue.

State Bank of Travencore 's board of directors on Friday approved the rights issue of the equity shares of the bank for up to Rs 485 crore.

The board on March 26 had given an in-principle approval to raise Rs 629 crore from the rights issue. The stock closed marginally down to Rs 594 on the BSE.  The information was released after stock market closed for trading.

State Bk Travan stock price

On June 16, 2014, State Bank of Travancore closed at Rs 592.20, down Rs 4.55, or 0.76 percent. The 52-week high of the share was Rs 650.00 and the 52-week low was Rs 364.50.

The company's trailing 12-month (TTM) EPS was at Rs 51.36 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 11.53. The latest book value of the company is Rs 773.64 per share. At current value, the price-to-book value of the company is 0.77.

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Settle case with Voda before any tax reforms: Chidambaram

Former finance minister P Chidambaram today suggested a settlement with Vodafone is needed before any changes can be made to the retrospective law.

Former finance minister P Chidambaram today suggested a settlement with Vodafone is needed before any changes can be made to the retrospective law.

He added there was no option to do that currently since there was a date for setting up the arbitrator. He believes they will have to wait for the finance bill now for any resolution in the matter.

The former finance minister said that the demand of capital gains on Vodafone were not unjustified.

He added that it was universally recognised that the transaction between the buyer and seller attracted capital gains.

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Coca Cola to resume operations at Varanasi plant

The order by the Tribunal, however, prevented the company from increasing its production from 600 bottles per minute till it gets a clearance from the Central Ground Water Authority (CGWA).

Beverages giant Coca Cola will resume operations at its Varanasi plant in Uttar Pradesh following an order from the National Green Tribunal, which today stayed UP Pollution Control Board's directive to close the facility.

The order by the Tribunal, however, prevented the company from increasing its production from 600 bottles per minute till it gets a clearance from the Central Ground Water Authority (CGWA).

"We welcome today's ruling of the National Green Tribunal that stays the Uttar Pradesh Pollution Control Board's order of closure of the Varanasi Plant. The order reconfirms HCCB's conformance to all applicable laws and regulations in course of doing business," Hindustan Coca-Cola Beverages said in a statement.

The plant was shut down earlier this month after the Uttar Pradesh Pollution Control Board (UPPCB) withdrew permission to operate over alleged violation of environmental norms. The single-line plant at Mehandiganj, Varanasi produces soft drinks only in glass bottles and belongs to Hindustan Coca-Cola Beverages Pvt Ltd, the bottling operations unit of Coca-Cola.

Hindustan Coca-Cola Beverages had moved the National Green Tribunal, challenging the order of UPPCB. In its June 6 order, the UPPCB had stated that Coca-Cola did not obtain clearance from the CGWA, a government agency that monitors and regulates ground water use in water-stressed areas.

The board had said the treatment system at the plant wasn't operated properly and that the company produced more than the permitted capacity by raising production to 36,000 cases a day from 20,000 cases a day.

The company's application to the CGWA for increasing its production at the plant has been pending for more than a year. In 2005, the Kerala State Pollution Control Board had ordered closure of Coca Cola's plant at Plachimada.

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Princeware targets Rs 100 cr sales from luggage biz by FY17

The company, which reported Rs 500 crore revenue in the last fiscal, started retailing luggage six months ago.

Plastics firm Princeware International is targeting over Rs 100 crore revenue from luggage business by fiscal 2017 as it doubles its retail presence.

The company, which reported Rs 500 crore revenue in the last fiscal, started retailing luggage six months ago.

"We are looking at over Rs 100 crore revenue from our luggage business by year 2016-17. We are expanding our retail presence by doubling our stores this year," Princeware International National Sales Manager Sanjeev Mehrotra told PTI.

The company's luggage business reported a turnover of Rs 50 crore in the previous fiscal. It has 20 retail stores spread across the country.

"We are targeting 60 percent turnover growth this year," he added.

The company manufactures luggage products from its plant in Daman in Gujarat.

Princeware manufactures and retails home-ware products such as bottles, storage boxes, thermometer products and luggage products.

21.04 | 0 komentar | Read More

IT sector hiring has improved in last 2 quarters: Info Edge

Improved hiring trends in the IT sector has contributed to Info Edge 's topline over the last couple of quarters, says Hitesh Oberoi, CEO & MD, Info Edge, which owns the popular recruitment portal naukri.com.

In an interview with CNBC-TV18's Reema Tendulkar and Nigel Dsouza, Oberoi said there were signs of a marginal recovery in sectors like telecom and insurance .

"But sectors like engineering, construction, real estate are still not shaping up well for us," he said.

Oberoi is hopeful of his Naukri's business improving every quarter from here on.

"Anecdotally what I can tell you is our sales guys meet HR managers everyday and lot of them are getting back saying look a lot of the HR managers are now saying that we need to go back to the drawing board and we are waiting for the business to give a revised plan," Oberoi said.

He said Info Edge was investing heavily in its real estate portal 99acres.com, as he feels the real estate market is a much bigger market than jobs in the long run.

"We are leaders in this market (real estate) but we are not as dominant as we are in the jobs business. So we have been saying that we will do whatever it takes to try and achieve dominance in this category and if this means making short-term losses and investing a lot more in the business we will do that," Oberoi said.

Below is the edited transcript of the interview:

Q: The Jobspeak index is up close to 14 percent odd. Could you take us through the number and also what is happening with the other sectors because I am aware that IT is seeing some kind of attraction but what about the other sectors?

A: We started seeing an improvement in our business about seven-eight months ago and the first sector to look up for us was IT and IT cities of Bangalore, Chennai and Hyderabad. This sector has been doing well over the last two quarters for us. We are seeing a marginal recovery in some of the sectors like telecom, insurance as well. But sectors like engineering, construction, real estate are still not shaping up well for us. So going forward, things will hopefully get better with these sectors also.

Q: Looking at the overall Jobspeak index, do you expect these levels to sustain or can we expect some more improvement in the coming few months?

A: We expect our business to improve every quarter from now on and that has been the case for the last two quarters as well. Anecdotally, what I can tell you is our sales guys meet HR managers everyday and lot of them are getting back saying look a lot of the HR managers are now saying that we need to go back to the drawing board and we are waiting for the business to give a revised plan. I don't know what that really means but I am assuming that they are looking at business to increase their numbers for hiring going forward and that is what we expect to happen.

Q: What about 99acres, I hear that in fact, it is not going to be turning EBITDA positive in this year itself, when will it turn EBITDA positive?

A: 99acres is still in the investment phase. We see real estate as a big opportunity, the real estate market is much bigger than jobs in the long run and of course, there is a lot of competition in the market as well. We are leaders in this market but we are not as dominant as we are in the jobs business. So, we have been saying that we will do whatever it takes to try and achieve dominance in this category and if this means making short-term losses and investing a lot more in the business then we will do that.

Q: In the previous quarter, your recruitment revenues went up by close to about 13-14 percent. Can it cross that 15 percent mark in the coming two quarters? What can be the improvement that we can expect in recruitment in Q1 as well as in Q2?

A: We expect our business to improve every quarter from here on but our business is very closely indexed to the economy, especially the jobs business because we are in a very mature market as far as online recruitment is concerned. The hope here is that the economy will continues to improve every quarter from now on and that leads to our business improving every quarter. Yes, that has been the case for the last two quarters and unless something untoward happens, we expect this to happen going forward as well.

Q: What is the sensitivity of a 1 percent increase in GDP to how much it can impact your business or improve your business?

A: The right kind of GDP growth does make an impact; every 1 percent probably makes an impact of about 7-8 percent on our growth rates in Naukri.

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Granules India's paracetamol facility passes USFDA check

The company's four API facilities have passed the USFDA inspections in the past 12 months, Granules India said. Hyderabad-based Granules India has facilities for APIs, pharmaceutical formulation intermediates (PFIs) and finished dosages, serving customers in over 60 countries.

Drug firm Granules India 's paracetamol manufacturing facility at Bonthapally in Andhra Pradesh has passed an inspection by the US health regulator.

The company's paracetamol facility has successfully passed a United States Food and Drug Administration (USFDA) inspection without any '483 observations', Granules India said in a filing to the BSE.

"The facility has the world's largest single active pharmaceutical ingredient (API) production line by volume," it added.

An FDA Form 483 is issued to the firm's management at the conclusion of an inspection when an investigator(s) has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic (FD&C) Act and other related acts.

The company's four API facilities have passed the USFDA inspections in the past 12 months, Granules India said. Hyderabad-based Granules India has facilities for APIs, pharmaceutical formulation intermediates (PFIs) and finished dosages, serving customers in over 60 countries.

Shares of Granules India were trading at Rs 401.75 per scrip in the afternoon trade today, up 1.40 per cent from its previous close, on the BSE .

Granules India stock price

On June 16, 2014, Granules India closed at Rs 407.40, up Rs 11.20, or 2.83 percent. The 52-week high of the share was Rs 429.00 and the 52-week low was Rs 103.70.

The company's trailing 12-month (TTM) EPS was at Rs 39.78 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 10.24. The latest book value of the company is Rs 132.94 per share. At current value, the price-to-book value of the company is 3.06.

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Posco EC signs MoU with PNC Infratech

Posco E&C and PNC Infratech will pitch for infrastructure projects with a special focus on dedicated rail freight corridors, high speed rail networks, personal rapid transport systems, smart cities, integrated townships, development of industrial regions and other core infrastructure projects, a company statement said.

Posco Engineering & Construction India, a wholly owned subsidiary of Posco E&C Co Ltd, Korea today said it has signed a memorandum of understanding (MoU) with PNC Infratech Ltd to jointly develop and execute infrastructure projects in India and neighbouring countries.

PNC Infratech is engaged in construction of highways, runways, bridges, flyovers, power transmission lines, development of industrial estates.

Posco E&C and PNC Infratech will pitch for infrastructure projects with a special focus on dedicated rail freight corridors, high speed rail networks, personal rapid transport systems, smart cities, integrated townships, development of industrial regions and other core infrastructure projects, a company statement said.

Also read:  Wipro bags IT infra deal from 7-Eleven in Australia

"We are delighted to partner with PNC Infratech for pursuing infrastructure projects in various key areas. The proven capabilities of our two companies would give us an edge in bidding for major infrastructure projects in India and neighbouring countries," Posco Engineering & Construction India Chairman Hwan Ok said.

Yogesh Jain, MD, PNC Infratech Ltd said, "We have executed several infrastructure projects over the past two decades. This partnership would enable us to bid for larger projects in several key areas, where Posco E&C would bring in world-class expertise."

Huge investments are expected to be made in infrastructure development in the country in the years ahead, and the vast experience of Posco E&C along with the local knowledge and skills of PNC Infratech, would give this alliance a strong competitive edge, Jain said.

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