MCX AGM set to be stormy

The annual general meeting of the Multi-Commodity Exchange of India (MCX) , scheduled for tomorrow, could well be a stormy affair as some NSEL investors plan to protest outside the venue.

Also read:  Brokers may boycott trading on MCX: NSEL Investors Forum

MCX, the only listed commodity exchange in the country, is promoted by troubled Financial Technologies (FTIL) , whose group firm National Spot Exchange (NSEL) is at the centre of payment crisis and holds 26 percent in the exchange.

Last week, auditors of FTIL had withdrawn their audit report for FY 2013, saying the financial statements could no longer be "relied upon".

FTIL's statutory auditor Deloitte Haskins & Sells had withdrawn its audit report certifying accounts of the company for FY 2013 as the Rs 5,600 crore payment crisis at NSEL ballooned.

The audited accounts were to be placed for FTIL's annual shareholder meeting on September 25 but the auditor red-flagged the financial statements and withdrew its report.

"The statutory auditors of the company on September 23 informed that the audit report dated May 30, 2013, on the standalone and the consolidated financial statements of the company for the year-ended March 31, 2013, should no longer be relied upon," FTIL had said in exchange filing.

NSEL, promoted by Jignesh Shah-led FTIL, is facing problems in settling Rs 5,600 crore dues to 13,000 investors after it was forced to suspend trade on July 31 on government directive. The exchange had defaulted on committed payments for the fifth consecutive time last week.

MCX shareholders, on condition of anonymity, said they are concerned over all these developments.

An official of NSEL investor form said there are plans to hold protest outside the venue of MCX AGM.

The Forward Markets Commission (FMC) had last month told the board members of the commodity spot exchange that "non-settlement of outstanding trade on NSEL seriously reflects your credibility and reputation which is a key ingredient in meeting the criteria for 'fit and proper' person."

Joseph Massey, MD and CEO of MCX-SX, has already decided to withdraw his request for re-appointment as a director of MCX.

The MCX board also appointed RM Premkumar, the FMC-nominated director, as interim chairman early this month.

This clearly means that FMC will now have a greater say in the functioning of the board. A look at new board will show that four out of eight board members are FMC nominated, a shareholder, Alok Kumar, said.

Investors are eagerly awaiting the outcome of the finance ministry's decision to take action against NSEL as the panel, headed by economic affairs secretary Arvind Mayaram, submitted its report on alleged irregularities in the bourse last week and found many loopholes in the functioning.

The Mayaram panel also called for a CBI, MCA and ED probe into alleged irregularities in the exchange.

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New Land Acquisition Act not anti-industry: Jairam Ramesh

Union Minister for Rural Development Jairam Ramesh on Sunday allayed fears of Indian industry and said the new Land Acquisition Act would make projects economically viable.

Also read:  Land acquisition bill to be notified in two months: Ramesh

Terming the new act "historic", Ramesh said it was "humane, its thrust is on rehabilitation and resettlement and in the national interest, as it promotes the welfare of tribals and marginal farmers".

In order to represent this spirit, the new act, to be notified early 2014, has been re-christened "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement," Ramesh said.

Addressing apprehensions of the industry, Ramesh said the new act would apply only to land acquired by the central and state authorities for a public purpose, and there would be no bar on purchase of private land.

"The industry must look beyond land acquisition by the government and explore land purchase opportunities. In fact, in 20 years, there should only be land purchase and no land acquisition," Ramesh said.

Ramesh said that a bill seeking to amend the Registration Act, 1908, has been introduced in parliament. After it is passed, all land sales and registration records will come into the public domain. With increased transparency, it will be easier for corporates to purchase lands, he said.

Terming the old law "anti-democratic" as governments bought land from people at low prices and sold it to business houses at a premium, he said it created public anger nationwide and led to mass movements in Uttar Pradesh, Madhya Pradesh, Gujarat and Odisha.

Under the new act, the collector's powers have been considerably curtailed, and the purpose of land acquisition has been clearly spelt out, with major emphasis on rehabilitation and resettlement.

"The consent of Gram Sabhas in Schedule V areas, mostly tribal-dominated, and consultation with the gram sabha in other areas has been made mandatory. If the government failed to utilise the land so acquired for public purpose within five years, it will be required to return it to its owners," Ramesh said.

On compensation, the minister said that farmers and others who lose their lands would be entitled to twice the rate of a three-year average of highest selling prices in urban areas and up to four times the average highest sale price in rural areas.

"There is also a provision of leasing the land instead of selling, thereby opting to receive a regular income over a longer period of time," Ramesh said.

Since it is under the concurrent list of the constitution, states could improve upon the compensation and other provisions in favour of the landowners and farmers, Ramesh said.

Due to be notified either January 1 or April 1, 2014, the act should be implemented by all states in the right spirit, he said

Reiterating that land acquisition should become an act of "last resort", Ramesh said his ministry has been working towards improving land records management and promoting transparency in land sales across India.

A Rs.10 billion (Rs.1,000 crore) National Land Record Modernisation Programme is being implemented with focus on computerisation of land records, digitisation of maps and surveys.

While Maharashtra has progressed well on this front, it has yet to catch up with states like Haryana, Gujarat, Karnataka and Tripura, he added.

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Nalco to pay Rs 322.15 crore as dividend to government

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

Also read: Nalco rejects Vedanta's request for alumina

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

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

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

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

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Nationwide ban on earth mining for bricks and roads: NGT

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

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

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

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

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

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

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

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

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

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

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US aircraft lessor ILFC sends rental default notice to Jet

Naresh Goyal-promoted Jet Airways has been slapped with a default notice by one of its lessors, ILFC, for non-payment of rentals.

Also Read: Jet-Etihad deal: CVC may close complaints of irregularities

Jet, however, said it is negotiating with the US-based International Lease Finance Corp (ILFC), and hopes to reach an amicable settlement.

The default amount could not be ascertained. According to reports, Jet has been served a notice by ILFC for non-payment of rentals of its about six Boeing 737s.

The aircraft for which the rentals have not been paid are currently with both Jet Airways and its low-cost arm JetLite.

"Jet Airways has a long and excellent relationship with ILFC. Jet and ILFC are currently in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same, the accounts will be settled," a Jet spokesperson told PTI.

The Jet Group has 115 planes, both narrow-body and wide-body aircraft, a majority of them leased.

The airline reported a net loss of Rs 355.38 crore in the June quarter and is pinning hopes on the impending Rs 2,058 crore deal by divesting 24 percent stake to Etihad to overcome the financial problems.

The deal, which is awaiting approval from the Cabinet, the market regulator Sebi and competition watchdog CCI, has been challenged in the Supreme Court by BJP leader Subramanian Swamy, alleging corruption.

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NALCO plans new ventures, expansion, diversification

Despite declining prices and adverse market conditions, aluminium giant NALCO , which posted 4.75 per cent jump in sales turnover at Rs 6,809 crore in 2012-13, has plans for ambitious new ventures, expansion and diversification programmes, a top company official said today.

Also Read: See FY14 output at 3.5 lakh tonne: Nalco

Nalco is pursuing with Odisha government plans to obtain Pottangi Bauxite Mines, which has a mineable reserve of about 70 million tonnes, NALCO CMD Ansuman Das said at the 32nd annual general meeting of the Navaratna PSU here.

Subject to availability of Pottangi Mines, the company has plans to go for 5th stream Refinery based on medium pressure digestion technology at Damanjodi, he said.

The capacity of the stream will be approximately 1 million tonnes per annum and investment will be approximately Rs 5,000 crore.

The CMD said NALCO is planning to set up a Rs 5,500 crore greenfield Alumina Refinery in Gujarat with 1 MTPA capacity, for which Bauxite shall be supplied by Gujarat Mineral Development Corporation.

Listing the achievements of NALCO, the CMD said: "The company has posted a higher net sales turnover of Rs 6,809 crore, which is 4.75 per cent over Rs 6,500 crore achieved in the previous fiscal."

The rise in sales turnover was mostly attributed to higher production and sale of alumina, he said. However, the net profit of the company was Rs 593 crore during the year as compared to Rs 850 crore in the previous fiscal, primarily due to high input costs, Das said.

NALCO achieved in last fiscal the highest-ever performance in Bauxite transportation of 54.19 lakh tonnes (LT), against the previous best of 50.03 LT in 2011-12, the CMD said.

At the same time, Nalco's Alumina Refinery has produced 18.02 lakh tonnes of alumina hydrate, which is an all-time high, against the previous best of 16.87 LT achieved in 2011-12, he said.

The Aluminium Smelter Plant at Angul achieved cast metal production of 4.03 LT against 4.13 LT achieved in 2011-12, Das said.

On sales, the Nalco CMD said the company achieved total chemical sale of 9.85 LT in 2012-13 compared to 8.43 LT achieved during 2011-12. This includes Calcined Alumina Export of 9.44 LT made during 2012-13 compared to 7.92 LT export during 2011-12.

The total metal sale during 2012-13 was 4.03 LT compared to 4.15 LT during 2011-12. Total metal sale consists of domestic sale of 2.59 LT and export of 1.44 LT.

Total metal sales during the year was lower due to production curtailment at Smelter Plant because of high input costs, he said.

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Bidding shale gas blocks not yet viable: Delloitte India

Bidding of shale gas and oil exploration blocks has a long way to go before it becomes viable due to various issues like gas pricing, access to capital, land rights, water contamination, says Debasish Mishra, Senior Director at Delloitte India.

Mishra's views come on the back of the Cabinet Committee on Economic Affairs (CCEA) approving the long-awaited shale gas and oil exploration policy to boost oil and gas production and cut imports.

Initially, Oil and Natural Gas Corp ( ONGC ) and Oil India Ltd ( OIL ) will be allowed to explore and produce shale gas from land blocks, which have already been allocated to them by government without competitive bidding.

Also read: Govt approves policy for shale gas and oil exploration

Below is the verbatim transcript of his interview on CNBC-TV18

Q. The shale-gas exploration policy has been hindered by slow assessment of the size and accessibility of actual reserves and also on the issue of price. Do you really believe that we will have takers when the government finally decides to put these blocks up for bidding?

A: There are several factors which dither a lot of actual investors from showing interest in this shale gas blocks. Some issues like what is happening in NELP rounds where investors are concerned about the pricing of the gas and the allocation policy and stuff like that.

The success of shale gas in US was a factor of technology. There are 18000 rigs available with horizontal drilling facility, access to capital, land rights etc but these are challenges in a hugely densely populated country like India.  Issues like water contamination and other things could be also posing several challenges.

Q: What is going to be the immediate implication because ONGC and Oil India already have blocks allocated to them? With the passage of this policy what will be the immediate implication specifically as far as these two companies are concerned?

A: They may be putting some amount of money in the exploration activity. However, the geological factors in India also is not well understood, when it comes to what kind of structure is there, what kind of reserve is there - the specifics are not yet known.

Once these companies get that right to explore they will put some amount of money and explore it better to understand whether these things are commercially viable or not.

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Anand Rathi Securities under Income tax dept scanner

CNBC-TV18 has learnt that the Income Tax department has started raids and searches in 18 offices of Anand Rathi Securities, in and around Mumbai. These raids are likely to be connected with Anand Rathi's role in the NSEL Fiasco.

Earlier, the I-T department's investigation revealed that the warehouse receipts issued and kept with the exchange were bogus and not backed by commodities.

After collecting all the details of investors who traded with the borrowers from brokers, the I-T department is trying to ascertain how much money the brokers invested through proprietary accounts and how much of it was investor money.

The IT department hasn't confirmed any disclosures or seizures as yet.

The raid comes a dy after the Arvind Mayaram panel, which is believed to have found some minor systemic problems in the function of the National Spot Exchange Limited (NSEL) , gave its report to Finance Minister P Chidambaram.

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Moody's cuts State Bank of India's debt rating to 'Baa3'

Global rating agency Moody's today downgraded the senior unsecured debt and local currency deposit rating of country's largest bank State Bank of India ( SBI ) by a notch to 'Baa3' from 'Baa2', citing asset quality and recapitalisation concerns.

Also read: Fitch takes rating action on Indian banks

"A combination of increasing pressure on credit fundamentals and ongoing reliance on fiscally constrained government to maintain capital at levels desired by regulators argue for appropriateness of supported debt and deposit ratings at a level no higher than the sovereign," Moody's said in a statement.

State Bank of India (SBI) could not be immediately contacted for comments.

SBI's revised rating for the senior unsecured debt and local currency deposit instruments would now be Baa3 from the earlier Baa2, it said, revising down the outlook on the bank's financial strength rating to negative from stable.

Explaining the rationale behind the action, Moody's said the ongoing gloom on the economic front will result in the asset quality, with its loan impaired ratio already touching 8.6 percent, with a heavy increase in the June quarter.

"While there may be a seasonal element to this rise, the spike in NPLs illustrates that the bank's asset quality is under pressure," it said.

On the recapitalisation front, Moody's said SBI will have to compete with other state-run banks for its share in the Rs 14,000 crore allocated in the budget.

The high loan growth of up to 20 percent as against the earlier 15 percent, increasing asset quality troubles and lower margins indicate that the bank's capital levels will decline without external injection, the Moody's said, adding that SBI will require an infusion this fiscal.

When KC Chakrabarty, deputy governor, Reserve Bank of India (RBI) was asked about his views on the downgrade, he said, "Don't worry about the credit rating agencies. They don't have much credibility."

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Centre files affidavit on coal blocks identification

The Centre today filed its affidavit in the Supreme Court stating various developments taking place since 1992 on coal block identification and allocation to private companies.

In its 24-page affidavit, backed by voluminous records, the Centre contended the Coal India Ltd is the lessee of state governments in respect of the coal mines which were vested Coal Mines Authority after nationalisation of the natural resources in 1973.

It said basic identification exercise of coal blocks is done by the Central Mine Planning and Design Institute Limited (CMPDIL) but the allocation of blocks for captive mining is done by CIL."In the circumstances, it is clear that basic identification exercise was conducted by CMPDIL but a final decision allowing such blocks to be given for captive mining had to be that of CIL since basically the interest of CIL had to be taken into consideration," the affidavit said.

Also read: Coal linkage panel allows Lanco Babandh to ink FSA with CIL

The Centre said 172 blocks came to be identified for captive mining in 1997 which were not proposed to be taken up by CIL. It said total geological reserve available for Coal India is estimated around 123 billion tonnes.

The affidavit was filed to answer the apex court which had on the last hearing questioned the Centre on how coal blocks belonging to CIL were allocated to private companies. The affidavit also said the government had failed to produce certain documents on the progress of government policy on the coal block allocation to private companies which started in 1993.

"If these coal blocks identified by CIL and Central Mine Planning and Design Institute Limited (CMPDIL) are part of the lease hold area of CIL, then how can further right be created in favour of other companies," the apex court had said on the last hearing.

The bench had said the issue is "most vital" for the case and it cannot proceed in the matter without government's clarification on it. It had also asked the AG to supply all booklets of CMPDIL for identifying coal blocks and how applications from the companies were received by the Centre.

The apex court was hearing final arguments on PILs seeking cancellation of coal blocks allocation.

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Multi-platform BBM to strengthen IM community: BlackBerry

BlackBerry Messenger (BBM), instant chat application, will now be available for rival devices using Google Inc's Android software and for Apple's iPhone starting this week. In an exclusive interview to CNBC-TV18's Malvika Jain, Sunil Lalvani, MD, Blackberry says the move will create a strong, engaged social community of instant messaging users, irrespective of the already existing three platforms. Once we have done that the endeavour is then to launch BBM Channels."

Below is the verbatim transcript of his interview on CNBC-TV18

Q: By when can we expect BBM to become available across platforms and devices?

A: We are happy to share that BBM would now be available across Android and IOS devices so any user of Android or ice cream sandwich version 4 upwards or IOS 6 upwards can now have BBM downloaded and can have BBM services enabled on their devices starting this week.

Q: Would BBM now be available to all smart phone users without any charge or would users have to pay for it?

A: We are launching it (BBM) as a free application. Anyone who gets on to the Android player or the I-store can download it as a free application. There is going to be no charge.

Q: How would Blackberry generate revenues from BBM? To the best of my understanding the sole purpose of selling BBM as an independent service was to enhance revenues?

A: Before I talk about that element, I think it is important to understand what we are doing with BBM. BBM is an iconic product. People who use BBM or continue to use BBM swear by it, some of the strengths that BBM provides. What we have been hearing in the last one year the whole instant messaging market is extremely fragmented. You have over a billion users of IOS, Android and Blackberry there but there is a clear fragmentation of the instant messaging market.

The BBM comes with its core strengths and that's what we are looking at and taking. Looking at the iconic BBM we are making it available for Android and IOS users. In doing so our first step is to create a really strong, engaged social community of instant messaging users out there, irrespective of these three platforms.

Once we have done that the endeavour is then to launch BBM Channels. Channels are going to be the next level of evolution. It is really going to be BBM Channels talking about the socially engaged groups, brands, individuals, corporates, you can name any kind of socially engaged community can be formed and leveraged upon BBM.

Q: What is going to be Blackberry's future strategy particularly in emerging markets like India? The sense has been that now the focus of the company would have to shift to such markets.

 A: You are absolutely right. There is a lot of focus on markets like India especially for services like BBM. We have seen the youth community here. The user community for both BBM and other IM tools is extremely active and a typical BBM user, we analyse this globally and India is no exception to this.

We have seen the user community, 60 million BBM users send or receive 10 billion messages a day. That's a huge number of messages and what is interesting is that half the number of these messages is read within 20 seconds. This just shows you how socially engaged the BBM user community is. What we are seeing in India is this youth community or this socially engaged user community wants to leverage the power of BBM.

Q: Now that BBM has been launched as a separate product, would it be appropriate to assume that the focus of Blackberry is now going to be more on enterprise. Also, now that competitors like Apple are targeting multiple segments in addition to the high end segment, what would your strategy be for your handset division?

A: Blackberry has always been in both the services and handset segment. So BBM as a service has been around for many years. On the enterprise side we have a lot of services that come in the form of software and services which we cater to enterprises with. The handset or the hardware business is one part pf our overall revenue model. Services and software has always been an integral part of our overall revenue model.

What we are doing is with BBM across platforms and then BBM Channels is really taking that services portfolio to the next level and expanding that portfolio to non-blackberry devices, typically Android and IOS to begin with. Similarly on the enterprise side we have the best management capabilities for blackberry devices.

What we are doing now is taking that management capability that we call as BES and have rolled out something called BES10 or Blackberry Enterprise Service 10 which gives you the ability to manage Android, IOS and Blackberry devices through a central server so what we have actually done is that in the last six months we expanded our portfolio of software services to take it across platforms so on the enterprise side we already do it with BES 10, for BBM we are now taking it for the consumer segment as well. So it is actually a two pronged strategy for both enterprise and consumer.

Q: We have been hearing about possible restructuring at Blackberry. Are we going to be seeing some lay offs?

A: There is a lot of speculation that's been happening in terms of lay offs. I wouldn't want to comment on speculation. However, definitely the company is going through a restructuring, part of rolling out of services has to do with that. The alignment of the business model for BBM across platforms and BES 10 across platforms is a part of the restructuring exercise.

Our restructuring is more aligned to the business dynamics, the market dynamics which is every user of android, IOS or blackberry out there is a potential customer for me in the enterprise segment because I can sell management MDM capabilities to them, every user of an Android or IOS devise out there is a potential customer for me for BBM services so really the restructuring is aligned more to the business dynamics and the market needs right now. That is what our restructuring is all about.

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No issues with Tata-Singapore Air deal: Ajit Singh

A day after Tata group decided to launch an airline in partnership with Singapore Airlines, civil aviation minister Ajit Singh said he has no issues with the deal.

However, he also added that the Sebi (Securities and Exchange Board of India) and the ministry of corporate affairs will look into issues of conflict of interest.

Also read: Interest conflict likely in Tata airline deals: Ajay Prasad

"As far as civil aviation ministry is concerned, our rules don't say anything about it. If there are any conflicts, I doubt if there are any problems, but if there is, it is for the corporate affairs ministry and Sebi", said civil aviation minister Ajit Singh.

Meanwhile sources tell CNBC-TV18 that the Tatas had informed Air Asia about their decision to partner with Singapore Airlines and that AirAsia does not see this as an issue at all.

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Infy BPO global sales head quits; to join Accenture: Srcs

Sep 17, 2013, 10.25 PM IST

Kartik Jayaraman, global sales head of Infosys BPO has resigned and is likely to join Accenture, reports CNBC-TV18's Kritika Saxena, quoting sources.

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Infy BPO global sales head quits; to join Accenture: Srcs

Kartik Jayaraman, global sales head of Infosys BPO has resigned and is likely to join Accenture, reports CNBC-TV18's Kritika Saxena, quoting sources.

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

Infy BPO global sales head quits; to join Accenture: Srcs

Kartik Jayaraman, global sales head of Infosys BPO has resigned and is likely to join Accenture, reports CNBC-TV18's Kritika Saxena, quoting sources.

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Infosys seems to be battling senior management attrition. CNBC-TV18 learns from sources that Kartik Jayaraman, the global sales head of Infosys BPO, has put in his papers recently and will be joining Accenture, reports CNBC-TV18's Kritika Saxena.

While there was no immediate confirmation from Accenture on the development; sources indicate that his role will be based out of Melbourne in the senior management team of Accenture.

Also read: Vemuri exit: Infosys continues to lose senior talent

Jayaraman joined Infosys in 2006 and was based out of its Melbourne office. He not only took care of global sales Infosys BPO, but also handled the energy and utilities services area. In his earlier roles at Infosys BPO, Jayaraman has taken care of emerging geographies like Australia and New Zealand.
 
Jayaraman's departure will mark the second exit at Infosys BPO over the last one month and the sixth senior management exit at Infosys over the last three months. Earlier this month, Humberto Andrade, the Latin America BPO head of Infosys resigned to join Capgemini.

Since NR Narayanamurthy's return to Infosys, senior executives like Ashok Vemuri,  head of America & head of manufacturing & engineering; Basad Pradhan, global sales and marketing head and Sudhir Chaturvedi, financial services head for America; have put quit.
 
Experts say, while it will be unfair to attribute the recent exits to the current restructuring at Infosys, it is imperative for the management to arrest attrition at the earliest to prevent depletion of company resources and protect employee morale.

HEALTHCARE: Future of Healthcare

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USFDA adds Ranbaxy's Mohali plant to consent decree

In a major blow to Ranbaxy , The US Food and Drug Authority (USFDA) has added Ranbaxy's Mohali to the Consent Decree, which was signed by the drug major in January 2012.

The Consent Decree was for regulatory uphaul at its Paonta Sahib and Dewas plants. The Mohali plant had received an import alert from the USFDA earlier on Monday.

Also read: USFDA issues import alert on Ranbaxy's Mohali unit

The action comes on the back of failure by Ranbaxy to rectify violations almost a year after it was revealed in the audit and will have wider implications, reports CNBC-TV18's Archana Shukla.
 
The USFDA statement says it found violations at Mohali in the audits conducted in September and December, 2012. The cGMP violations found have been very significant in nature, including failure to locate these violations and satisfactorily resolve them.
 
In December 2012, Ranbaxy had to recall certain batches of Atorvastatin supplied from the Mohali plant from the US market. From that point, they have not been supplying the drug from this plant to the US market. Currently, Ohm Labs has been doing it.
 
They have not got approvals for any drugs, which they have filed from Mohali facility.
 
Ranbaxy earlier had denied any significant violations at Mohali and stated that all things were in place and that observations made through form 483 was a regular process.

However, the US FDA statement says that the Mohali facility will be subject to the same terms of the consent decree and of permanent injunction entered against Ranbaxy in January 2012.
 
Hence, Ranbaxy will have to hire an external consultant to conduct thorough inspection at Mohali and chart a thorough a step-by-step process to re-establish cGMP compliance before it can be permitted to supply to US.

Also, none of the new drug filings made from Mohali plant would be considered for approval by USFDA until the consent decree, which now covers all three Indian plants, is completed.
 
Consent decree was a very strict action which the USFDA had taken for Ranbaxy's Paonta Sahib and Dewas facilities when they had found significant cGMP violations and data integrity issues at these plants.
 
With Mohali now being added to the consent decree, the implications would be much wider and remediation would be a long haul. It's pending USFDA approvals for generic Diovan (patent expired in Aug '12) and generic Valcyte (which goes off patent on 30th Sept '12) is in a state of uncertainty.

It was anticipated that post the regulatory issues at Paonta Sahib and Dewas, these drug filings were transferred to Mohali. Now, concerns would be raised also for Ranbaxy's ability to monetize its exclusive marketing opportunity for Astrazeneca's heartburn drug Nexium, which goes off-patent in May 2014.
 
Investors also need more clarity on the company's strategies and action plans now in the light of recent developments. On Monday, Ranbaxy in a stock exchange statement had denied any knowledge of the import alert on Mohali.

However, the USFDA statement through much light on the problems that has been plaguing Ranbaxy's Mohali plant.

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Textile sector to seek priority status from RBI: Chatterji

Owing to a slowdown in conventional export markets, the textile ministry is negotiating a free trade agreement (FTA) with Japan and is focusing on Latin America to boost Indian textile exports. In an exclusive conversation with CNBC-TV18's Malvika jain, textile secretary Zohra Chatterji said that her ministry is seeking priority sector status from the Reserve Bank of India (RBI).

Below is an edited transcript of her interview on CNBC-TV18

Q: What developments are taking place in the export ministry?

A: We are looking for priority sector lending specially for exports and some flexibility in the labour laws, so that the booming export orders could be serviced at this point.

We have made some headway and hope you will have some positive news in the days to come.

Q: The conventional markets for exports that India has been focusing on are seeing a slowdown. Are there any steps that the ministry is taking to promote exports to other markets?

A: We are actively looking at other markets especially Latin America and in view of the FTA we are also looking at the Japanese market.

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CBI yet to receive 150 files, awaits complaint from CoalMin

Nearly 150 files and documents are yet to be received from the Coal Ministry as the CBI now awaits a complaint from the ministry to register a case into their mysterious disappearance.

Senior officials attached with the probe said that every effort was made by the CBI to locate documents and files that were seized during raids earlier.

At the end, the CBI has now informed that some files and documents, mainly recommendation letters of Parliament Members and others, totalling to nearly 150 were still missing, the officials said.

Also read: Coal block auctions likely by Dec-Jan: Govt

Now the agency awaits a formal complaint from the coal ministry after which a thorough probe will be initiated in the case, the officials said.

The agency cannot register a case unless a complaint is received from the Ministry which would have to concede first that specific files have indeed gone missing and are not in records.

The Supreme Court while hearing the case on August 29 had directed the CBI to give a list of documents, files and information, sought by it, within five days to the Coal Ministry which, in turn, would furnish them within two weeks.

The agency in its letter dated September 2 to Attorney General G E Vahanvati had given an exhaustive list of over 50 allocations, the files of which have not been received by it.

The apex court had directed the Coal Ministry that if any document remains untraceable, then FIRs have to be lodged by the Coal Ministry with the CBI within a week thereafter.

Holding that the missing documents are "vital" for the probe in the scam, the apex court directed the Coal Ministry to lodge complaint with the CBI if it fails to trace any document sought by the agency.

"You (Centre) cannot do like this. Your explanation that files are being searched is not reasonable. This will not help," a three-judge bench headed by Justice R M Lodha said.

"Four months have passed. Have you filed an FIR for missing files. Is it an attempt to destroy the records. Truth must come out," the bench, also comprising justices Madan B Lokur and Kurian Joseph, had said while taking note that the missing documents pertain to financial aspects of the allocations.

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RIL slams DGH move to snatch gas discoveries as arbitrary

Reliance Industries has slammed the DGH's move to snatch 86 percent of its KG-D6 block area, including eight gas discoveries worth USD 10 billion, as "arbitrary" and said the oil regulator was responsible for the delay in developing the finds.

Reliance Executive Director P.M.S. Prasad on August 24 wrote a strongly worded letter to Oil Secretary Vivek Rae, questioning the intent of the Directorate General of Hydrocarbons (DGH) in asking the company to give up 6,601 sq km out of the total 7,645 sq km area in the block on the grounds that the time line to develop the fields had expired.

Of the eight discoveries in the area, the DGH refused to consider investment plans for five, with 0.8 trillion cubic feet of reserves, saying they were not viable at the current price of USD 4.2 per million British thermal units.

Also read: OilMin seeks legal opinion on levying $781mn penalty on RIL

The regulator refused to recognise the other three as discoveries in the absence of prescribed tests to confirm them and then disallowed pleas by Reliance and partner BP Plc for time to do the tests.

"In spite of the PSC providing for sale of gas at market prices, and the approved price of USD 4.2 being only valid until March 31, 2014, DGH insisted on evaluating the proposed development plan (of five discoveries) at a gas price of USD 4.2 and declared them to be unviable," Mr. Prasad said, adding this was done even after the knowledge that the field would start production much later than April 2014.

Mr. Prasad said Reliance-BP had agreed to carry out the DGH-prescribed drill stem test to confirm the three discoveries but the regulator never approved them and was now insisting on relinquishment of the areas.

In the 11-page letter with point-by-point rebuttals to the DGH claims, a copy of which was marked to Oil Minister M. Veerappa Moily, Mr. Prasad asked Mr. Rae to "advise the concerned to rectify the errors and remove the hurdles which are needlessly delaying further progression in these discoveries."

RIL had offered to relinquish 4,233 sq km of "low prospectivity area" in the eastern offshore KG-DWN-98/3 or KG-D6 block in keeping with the contractual requirement to retain only portions needed to produce oil and gas.

The area RIL is seeking to retain contains the 20 oil and gas finds it has made till date.

"Needlessly projecting RIL as a defaulter and forcing the contractor to relinquish discovered resources will not only hurt the investor but considerably reduce the chances of many of these discoveries ever being produced," Mr. Prasad said.

"Contractor (RIL) is of the view that the action is clearly an afterthought, based on arbitrary decision and tantamount to disputing completely valid discoveries made at the contractor's risk," he wrote.

Mr. Prasad said the discoveries were unilaterally declared unviable by the DGH without a discussion by the block oversight panel or taking its views into consideration.

"Under normal course it would be considered bad faith to take a biased unilateral view, which...delayed further progress for development, and then turn around to blame the contractor for expiry of time period," he said.

RIL, he said, had "spent enormous amount of time and money on bringing these discoveries to fruition" and would "suffer immensely if pushed to a situation of forced relinquishment of rightful discoveries."

The area proposed for cessation has at least 1.15 trillion cubic feet of known recoverable gas reserves valued at USD 4.83 billion at current prices.

Of the 20 finds, RIL began crude oil production from MA field in September 2008. It started gas output from MA field and Dhirubhai-1 & 3, the largest of the gas discoveries in the block, in April 2009.

The DGH proposed that RIL should retain only an area of 1,044 sq km, which holds the currently producing D1 and D3 gas and MA oil and gas fields, besides a cluster of four satellite fields (D-2, 6, 19 and 22) and another D-34 discovery.

RIL had in its March 13 proposal wanted to retain 3,412 sq km containing all the oil and gas finds made till date.

Contractually, companies are required to relinquish 25 per cent of the area in an oil and gas block at the end of the first phase of exploration that spans three years.

At the end of second phase, 50 per cent of the area is to be given up. By the third phase, only the area needed for development and production of a discovery is allowed to be retained. The second and third phases are of two years duration each.

RIL was awarded the KG-D6 block in 2000. The three-year first phase ended on June 7, 2003, and the third phase ended on June 7, 2007.

Sources said the DGH in 2006 agreed to RIL's proposal to declare the entire area as a discovery, allowing the company to retain it. The decision was ratified by a committee headed by additional secretary in the ministry and by the Oil Minister thereafter.

However, the decision was questioned by the Comptroller and Auditor General of India, the government auditor, as only 79 per cent of the block area had been covered by 3D seismic survey at the end of the third phase and yet it had been declared a discovery area.

The CAG, in its performance audit in 2011, had asked the ministry to review the determination of the entire KG-D6 contract area as a 'discovery area'

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RBI to offer special two-day funding window to banks on Sat

The Reserve Bank of India will offer banks a special two-day funding window through the marginal standing facility or the emergency funding window, given the current market conditions, it said in a release on Saturday.

Also Read: Rupee still undervalued;see Rajan as inflation hawk: Kamath

Banks had been forced to borrow funds at a higher rate in the inter-bank market earlier in the day due to outflows to corporate advance taxes, payable by Sunday.

The collateralised borrowing and lending obligation or the CBLO rate had shot up to as much as 72 percent, the clearing corporation website showed.

The central bank will open the MSF window between 1130-1200 GMT on Saturday and the funds borrowed will be payable on Monday, the release posted on the central bank's website showed.

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IBM with Jaiprakash Associates to set electronic chip units

Two electronic chip manufacturing units, which entail a combined investment of Rs 51,550 crore and would enjoy government subsidy, are likely to be operational in the country in the next two years.

Two consortia-- one led by Jaiprakash Associates in association with IBM and the other led Hindustan Semiconductor-- have proposed setting up these plants. Communications and IT Minister Kapil Sibal said setting up of electronic chip facilities will also be of nation's strategic purpose as chips have security implications.

Also read: TRAI to take up TV channels pricing issue

"There are strategic sectors like atomic energy sector, space, defence and power. In all of these you need chips. There are security considerations. It will serve our strategic purpose. There are security consideration. The fabs should be operational in about two years from now," Sibal said here.

At present there is no electronic chip manufacturing or semiconductor wafer fabrication plant in India. Over 90 per cent of the domestic electronic requirement is met through imports. Government will also hold 11 per cent stake in each project, while technology providers are required to hold 10 per cent stake holding.

Department of Electronics and Information Technology Secretary J Satyanarayana said: "One plant is proposed by a consortium led by Jaiprakash Associates, along with IBM Microelectronics and the system integrator is Tower Jazz. The outlay of the proposed fab is about Rs 26,300 crore."

This unit is likely to come up in Greater Noida in UP. "The other plant is from Hindustan Semiconductor Manufacturing Corporation (HSMC) along with France-based ST Microelectronics  and Silterra (Malaysia). The outlay of this proposed fab is about Rs 25,250 crore," Satyanarayana said.

The proposed location of this plant is in Gujarat.  Government is yet to work out the details of subsidy the proposed projects will enjoy. Subsidy will depend on detailed project report to be submitted by the two consortia.

Sibal said that the about 60 per cent of incentives approved by Cabinet are already covered under existing policies. In addition to this, the Finance Ministry has agreed to give them status under section 35 AD of I-T Act which means capital investment amount will be set off against profit.

"They will be given interest free loan. This along with recognition under 35 AD will constitute balance 40 per cent of incentives to be provided to them," Sibal said. Also, the loan amount given to the companies will be converted into 11 per cent equity in these projects, Satyanarayana said.

 Sibal said that electronic chip manufacturing is highly capital intensive business and long gestation period. "No body was interested in setting up wafer fab here unless you give them large concessions. It is zero duty in any country. We had to attract investors," he said.

Out of total 16 interest received by government, only the two consortium showed seriousness, the minister said.

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Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

Sep 13, 2013, 09.43 PM IST

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

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Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

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Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

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Attorney General Goolam Vahanvati may have paved the way for the sale of the government's residual stake in Hindustan Zinc to Vedanta, but the Mines Ministry has written a fresh letter to the Prime Minister's Office, opposing any further stake sale without amending the Metals Corporation Act of 1976.

CNBC-TV18's Anshu Sharma reports that the ministry has once again cited the law ministry's views - a stake sale is not tenable unless the act is amended.

This comes as a setback to Vedanta, which has already taken shareholder approval for purchasing the balance government stake in HZL and Balco for a sum of Rs 25,000 crore.

Unless this objection is overcome, the government's intent of mopping up revenue through this sale is unlikely to fructify any time soon.

HEALTHCARE: Future of Healthcare

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ONGC, Shell to pre-empt Petrobras oil block stake sale

Royal Dutch Shell and India's ONGC 1.22 % plan to exercise their pre-emption rights to buy a 35 percent stake in a Brazilian oil block that Brazil's Petrobras had planned to sell to China's Sinochem Group, two sources said.

Petrobras is shedding non-core assets to help finance a $237-billion, five-year investment plan. Last month it agreed to sell its stake in block BC-10, known as Parque das Conchas, in Brazil's Campos Basin, for $1.54 billion to Sinochem Group.

Also read: ONGC mulls using RIL infra for gas production

Existing participants in such projects often have a first right of refusal when fellow participants offer stakes for sale.

Oil and Natural Gas Corp ( ONGC ) currently has a 15 percent stake in the block, which would in theory entitle it to an extra 8 percent taken from the 35 per cent stake being sold by Petrobras. Shell is the operator with 50 percent share.

"ONGC will be buying between 10-15 percent share in the block, higher than its entitlement for 8 percent, while Shell will buy between 20-25 percent stake from Petrobras," said one of the sources, who both have knowledge of the development.

The second source said the decision to give a higher share to ONGC had been agreed with Shell.

No immediate comment was available on Friday from ONGC Videsh, the overseas investment arm of ONGC, while Shell declined to comment.

This will be the first case of an Indian explorer exercising pre-emption rights to block the sale of an oilfield stake to a Chinese firm.

A Chinese company this month secured a purchase that ONGC had been eyeing.

Kazakhstan used its pre-emptive rights to prevent the sale of US oil major ConocoPhillips' 8.4 per cent stake in the giant Kashagan oilfield to the Indian company. Kazakhstan then sold the stake to China National Petroleum Corp (CNPC).

The BC-10 block off Brazil lies in ultra-deep water of 2,000 metres and has been producing since 2009, since when output has totalled more than 70 million barrels of oil equivalent, Shell said in July.

A second-phase development is expected to start by the end of this year, with a peak production of 35,000 barrels of oil equivalent per day, according to Shell's website. 

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Union Bank sees margin pressure on rising cost of deposits

Sep 12, 2013, 10.52 PM IST

The bank will hold its base rate as of now, on the back of liquidity tightening measures from the Reserve Bank and wait for the next policy review for its future decision. Last week, the bank rolled back its earlier reduction in base rate by revising it by 25 basis points to 10.25 percent.

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Union Bank sees margin pressure on rising cost of deposits

The bank will hold its base rate as of now, on the back of liquidity tightening measures from the Reserve Bank and wait for the next policy review for its future decision. Last week, the bank rolled back its earlier reduction in base rate by revising it by 25 basis points to 10.25 percent.

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Union Bank sees margin pressure on rising cost of deposits

The bank will hold its base rate as of now, on the back of liquidity tightening measures from the Reserve Bank and wait for the next policy review for its future decision. Last week, the bank rolled back its earlier reduction in base rate by revising it by 25 basis points to 10.25 percent.

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State-run Union Bank of India is likely to see pressure on its margins in the near-term due to rise in cost of deposits, a top official of the public sector lender said today.

"Margins are under pressure as cost of deposits have gone up marginally due to revision of FCNR rates. However, we have reduced the bulk deposit rates," Union Bank of India (UBI) Chairman and Managing Director D Sarkar told reporters on the sidelines of an event here. The bank will hold its base rate as of now, on the back of liquidity tightening measures from the Reserve Bank and wait for the next policy review for its future decision, he added.

Last week, the bank rolled back its earlier reduction in base rate by revising it by 25 basis points to 10.25 percent. On the restructuring side, Sarkar said the bank may see some addition in restructuring as some power discom (distribution companies) accounts may be recast in the future.

He, however, said the bank would try to contain the bad assets at the present level. On the impact of rupee fall on remittances flow to the bank, Sarkar said UBI expects increased inflow in this segment. The bank posted a 9.5 percent rise in net profit at Rs 560.22 crore in the first quarter of the current fiscal. It also improved asset quality with gross NPA coming at 3.5 percent in the June quarter as against 3.76 percent a year earlier and net NPA of 1.96 percent from 2.2 percent reported a year ago.

HEALTHCARE: Future of Healthcare

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IIFL seeks speedy action from govt on NSEL issue

Broking firm India Infoline Ltd today demanded speedy and decisive action from the government to protect the interests of investors in the NSEL, which plunged into crisis after it suspended trading in contracts.

IIFL clients have received up to Rs 20 crore so far from NSEL and are yet to receive settlements up to Rs 305 crore, IIFL President Prashanth Prabhakaran said.

"Action has not happened in the last one and half months. We are very disappointed with the pace at which it is happening because it is larger than the scam of Harshad Mehta plus Ketan Parekh put together. Still there is no action on that front," Prabhakaran told reporters here.

"We still need some action which is decisive from the government side. The trail of money is crucial where the money has gone. Once that is done, we will know who has taken the money and who beneficiaries are," he said.

NSEL, promoted by Jignesh Shah-headed Financial Technologies India Ltd hit crisis after it suspended trading on July 31, raising concerns about possible default of Rs 5,600 crore due to investors, including 7,000 small investors.

He said pressing legal action on the promoter will not help as the case may end up in legal battle for years together.

Prabhakaran blamed market regulator Forward Markets Commission (FMC) for not being cautious about the developments.

"It is finally the regulator, who is supposed to have done due diligence against whatever they (NSEL) have committed in paper and given it to particular client and they have not done it.. Its the regulator's job. Counter party is exchange. Nobody else is the counter party in this particular case," he said.

Replying to query on the Income Tax Department's investigation into the issue, he said the Department will have to find the trail of the money.

Meanwhile, Prabhakaran said India Infoline Finance, the non-banking finance arm of India Infoline Ltd, will raise Rs 1,050 crore through issuance of secured redeemable non- convertible debentures maturing in three years and five years.

The company would issue the NCDs with a face value of Rs 1,000 each, aggregating up to Rs 525 crore with an option to retain over-subscription of a similar amount.

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Experts take on the UltraTech-Jaypee Cements deal

Sep 11, 2013, 10.45 PM IST

Jaiprakash Associates plans to reduce its debt by Rs 15,000 crore. Along with its subsidiaries, the group has a total debt of Rs 55,000-56,000 crore.

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Experts take on the UltraTech-Jaypee Cements deal

Jaiprakash Associates plans to reduce its debt by Rs 15,000 crore. Along with its subsidiaries, the group has a total debt of Rs 55,000-56,000 crore.

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

Experts take on the UltraTech-Jaypee Cements deal

Jaiprakash Associates plans to reduce its debt by Rs 15,000 crore. Along with its subsidiaries, the group has a total debt of Rs 55,000-56,000 crore.

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Aditya Birla Group firm UltraTech Cement said it will acquire debt-laden Jaiprakash Associates ' cement arm Jaypee Cement's Gujarat plant in a deal valued at Rs 3,800 crore. The transaction is expected to close in 7-9 months.

Also Read: UltraTech deal will pare co's debt by 15%: Jaypee Group  

"With this acquisition of 4.8 million tonnes per annum, the company's current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015," UltraTech Cement Chairman Kumar Mangalam Birla said.

Jaiprakash Associates plans to reduce its debt by Rs 15,000 crore in the current fiscal year ending March 31, 2014, executive chairman Manoj Gaur said. Jaiprakash, with its subsidiaries, has a total debt of Rs 55,000-56,000 crore, he said.

To know what HM Bangur, MD, Shree Cements ; SP Tulsian, sptulsian.com; Mihir Jhaveri, Analyst, Religare Capital Markets; and Rajesh Kumar Ravi, Senior Research Analyst, Karvy Stock Broking feel about the deal, watch the videos attached below.

HEALTHCARE: Future of Healthcare

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Govt notifies FDI changes; redefines 'control' under FEMA

The government today notified the recent relaxations made in sectoral foreign direct investments (FDI) caps under Foreign Exchange Management Act (FEMA). In addition, the stricter definition of 'control', for FDI policy, was also notified, reports CNBC-TV18'S Rituparna Bhuyan.

The notification has specified the fine print for FDI in defense. Prospective investors in the defense sector will have to adhere to 20 guidelines. However,  none of these 20 guidelines specify what constitutes state-of-the-art, but these rules give a commitment that within 10 weeks, the companies will be told if their application has been accepted or not.

Some of these conditions are, for example, transfer of equity between a non-resident and a non-resident where the lock-in period of three years will remain. Furthermore, even even after three years if there is a transfer of equity between a non-resident and a non-resident, it will require government approval.

The ministry of defence (MoD) does not give any guarantee of whatever arms or ammunition is produced if it will be procured by the MoD. However, the rules go on to say that whatever arms and ammunition gets produced will only have to be produced for the MoD.

So, we will now have to wait and see big companies like Lockheed Martin or Boeing and if their business plans are in sync with these rules on defence FDI notified today.

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TCS bags multi-million euro deal from Scandinavian Airlines

Country's largest software services firm Tata Consultancy Services today said it has bagged a five-year multi-million euros deal from SAS Scandinavian Airlines to help transform and optimise its IT infrastructure.

TCS will implement its propriety cloud-based solutions to simplify and standardise SAS IT landscape and the initiative is a part of the SAS' "4 Excellence Next Generation" strategy, aimed at improving competitiveness of the SAS Group, TCS said in a statement.

Also read: August trade deficit shrinks as exports rise

Through this partnership, SAS will also tap into TCS' Aviation and Digital Innovation Labs to develop solutions addressing the needs of the new digital consumer, it added.

SAS Scandinavian Airlines is one of Northern Europe's major airline, with more than 1,100 daily departures to 136 destinations in Scandinavia, Europe, the US and Asia.

"TCS is pleased to be selected as a strategic partner in SAS' transformation journey to address the new paradigm in the aviation industry, which is characterised by intense competition and demanding customers who are increasingly going digital," TCS Head of North Europe Amit Bajaj said.

TCS has recently been selected for several engagements like TDC in Denmark, Posten in Norway, Nokia in Finland and SAS in Sweden and the Nordic region at large.

"TCS has emerged as a clear partner of choice for Nordic companies looking to reinvent themselves in this new digital age," Bajaj said.

Present in the Nordic region since 1991, TCS' operations in the region comprise over 5,500 professionals working across Sweden, Finland, Norway, Denmark and Iceland.

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Tata Steel Odisha unit's 1st phase to start ops in Q4 2014

The work on the first phase of Tata Steel 's Kalinganagar project in Odisha, entailing an investment of the Rs 25,164 crore, is in full swing and operations are likely to commence in the last quarter of 2014.

According to an internal document of Tata Steel Odisha project, "phase I of the Kalinganagar project is to be commissioned by the last quarter of 2014."

As per the company, the plant is the largest ongoing single-location investment with a committed investment of Rs 20,011 crore as of June 2013 for the 3-million tonnes first phase. This is the first integrated greenfield project for the company outside Jamshedpur in its over a century-old history.

"Expenditure incurred till the June quarter in the project stands at Rs 9,941 crore," according to the document.

The 6-million tonne project is divided into two units of 3-mt each and will produce flat steel products for the automobile industry.

The document said the company will invest Rs 25,164 crore in building up the first phase of the project. Tata Steel had reported 26 percent jump in domestic sales at 2.005 million tonne in the first quarter of this fiscal. Similarly, production of saleable steel also increased 23 percent to touch at 2.145 million tonne during the June quarter.

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Induct Akula on SKS Microfinance board: SKS Trusts

SKS Trusts today demanded that Vikram Akula to be induced on the Board of SKS Microfinance , as the Trust became single largest shareholder of Indias only listed micro lender.

SKS Trusts has five mutual benefit trusts whose beneficiaries are self-help groups of borrowers of SKS Microfinance Ltd.

In a letter to the micro finance lender, Biksham Gujja, Chairperson of the trustee of SKS Trusts, said that it have recently become the largest shareholder with 12.6 percent shareholding , and reiterated its long-standing request for suitable representation on the Board.

"The SKS Trusts are the founding promoter and largest shareholder, and we would like to help the company achieve its goal of promoting financial inclusion while also enhancing long-term shareholder value," Gujja said.

He added: "In line with this, and as an initial step, the Trusts have urged the Board to induct...Vikram Akula, its nominee, immediately. The appointment could be regularised at the ensuing Annual General Meeting."

Akula, the founder and ex-chairman of SKS Microfinance, was given an unceremonious exit from the company in November 2011 following the Andhra Pradesh micro finance crisis.

Regarded as the poster boy of microfinance industry, he sold nine lakh shares of SKS Microfinance last week.

Akula said: "I am truly honoured that the Trusts have asked me to serve on the Board of SKS Microfinance. I will do my best to help SKS Microfinance achieve its mission and to contribute to enhancing long-term shareholder value.

Gujja said further: "The Trusts have nominated Akula because he has extensive experience in micro finance and is uniquely qualified to help the company.

"The SKS Trusts look forward to working closely with the Board in steering the company to its original mission and values while seeking to restore its past leadership and glory.

"The Trusts hope the company will reply favourably to this long-standing request."

SKS Microfinance officials were not available for comment.

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Somany Ceramics eyes 20% topline growth this fiscal

Despite the economic slowdown, Somany Ceramics has set an ambitious target to increase its topline growth by 20 percent this fiscal, a top company official said.

"The economy is indeed facing tough times, but we don't see an impact on our business because the demand for our products will continue to grow. We expect our topline to increase by around 20 per cent this fiscal," Somany Ceramics Joint Managing Director Abhishek Somany told PTI.

The Delhi-based firm had reported a Rs 31.59-crore net profit from an income of Rs 1,108.51 crore last fiscal.

However, Somany said pressure on the bottomline will continue mainly due to the spiraling fuel cost.

"The cost of natural gas, the main fuel used for manufacturing tiles, has gone up sharply of late. This will continue to put pressure on our bottomline. However, our strategies of de-bottlenecking and upgrading our plants and expansion through an asset-light model will help us achieve growth target even in these tough times," he said.

Basing his optimism on bullish long-term outlook for the construction and real estate sector, Somany said this in turn would help the tile industry.

"We have already embarked on expansion plans to meet such future demand. We will adopt a cautious approach and would continue to tread the path of growth mainly through asset- light outsourcing model including expansions of existing joint ventures and forging new alliances," he said.

"Investment in de-bottlenecking and technology upgradation of existing manufacturing plants would also continue," Somany added. .

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Ashok Leyland appoints Gopal Mahadevan as CFO

Hinduja Group flagship company Ashok Leyland has appointed Gopal Mahadevan as its Chief Financial Officer.

Mahadevan replaces K Sridharan, who superannuated last month after being with the company for over three decades, the Chennai-headquartered Ashok Leyland said in a statement.

Prior to taking the new role, Mahadevan was serving as Chief Financial Officer at Thermax.

Mahadevan, a recipient of several awards, including BEST CFO award given by the Institute of Chartered Accountants of India in 2011, began his career with city-based TTK Group.

In his over 25 years career, Mahadevan has served at Sanmar Group, Sify Ltd and Amara Raja Batteries, the release added.

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Worker unrest at Hero MotoCorp's Gurgaon plant

Tension is brewing at Hero MotoCorp 's plant at Gurgaon with workers threatening to go on a strike today, protesting against alleged management action against some colleagues.

The development comes at a time when a section of workers at the company's plant in Haridwar continue to stay away from work after a tool-down strike last month-end.

"We are protesting against action taken by the management, which has filed unjustified police cases against some of our colleagues. We will go on strike anytime unless our demands are met," Hero MotoCorp Workers Union (HMCWU) President Kanwalpreet Singh told PTI.

When contacted, a company spokesperson said some "misguided elements in the Union body" assaulted supervisors in the shop floor of the plant yesterday after a conciliation meeting.

"These officers who were assaulted have filed reports with police and police is free to investigate the matter," the spokesperson said.

However, in view of this gross act of indiscipline inside the plant, the management remains determined to deal with the incident swiftly, fairly and firmly, he said.

Accordingly, nine workmen involved in the incident have been suspended pending inquiry, he added.

Explaining the genesis of the current problem, he said when a three year wage settlement was signed in April this year, union representatives at the Gurgaon plant had "promised to ensure that all workmen will put in honest work. However, some workmen have continuously refused to fulfil their side of the commitment".

As per the wage settlement agreement, the company had agreed to hike salaries of workers on an average by Rs 9,000 per month over a period of three years as part of the agreement. This will be valid for three years with retrospective effect from August 1, 2012.

The Gurgaon plant of the company has 1,100 permanent workers. It rolls out about 6,500 two-wheelers per day.

Ruling out bowing to the strike threat, the spokesperson said: "We wish to categorically reiterate that under no circumstance will Hero MotoCorp compromise on matters of discipline and the company stands firm in its adherence to the well-established code of conduct and guidelines applicable to all employees for smooth operations at the plant."

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Mahanagar Gas hikes CNG, PNG prices

Mahanagar Gas today increased retail prices of CNG in the city and nearby areas by Rs 3 per kg to partly offset the impact of rupee fall on its input cost. The new prices will be effective from midnight, the city-based gas supplier said in a statement.

With the latest hike, which is coming within two months, the retail price of CNG (compressed natural gas) inclusive of local taxes will be Rs 38.95 per kg in Mumbai, Rs 39.69 in neighbouring Thane, Rs 39.44 in Navi Mumbai and Rs 39.20 in Kalyan.

Also read: India's untapped potential in oil and gas sector

The company has also revised the domestic PNG (piped natural gas) slabs effective tomorrow. Accordingly, the new Slab I (0 to 0.80 scmd) stands reduced to 0-0.5 scmd (standard cubic meters gas per day) and Slab II (0.81 scmd to 1.2 scmd) stands reduced from 1.2 scmd to 0.51-0.9 scmd and  Slab III (1.2 scmd and above) to 0.9 scmd and above.

The new prices inclusive of all taxes will be Rs 24.09 for Slab I and Rs 26.77 for Slab II and III.

08.11 | 0 komentar | Read More

JSPL's Rs 1,000 cr buyback offer to open on Sep 16

Jindal Steel and Power , which has proposed to buy back shares worth up to Rs 1,000 crore or 8.73 per cent of its paid up capital, will launch the offer on September 16.

JSPL Board had approved the buyback offer on August 30 and fixed a price of Rs 261 per share for the offer to be conducted through stock exchanges. "Date of opening of the buyback (offer) - September 16, 2013...," said JM Financial Institutional Securities Pvt Ltd, which is managing the offer on behalf of JSPL in a public notice.

"At the maximum buyback price of Rs 261 per equity share and for the maximum buyback size of Rs 1,000 crore, the indicative maximum number of equity shares that can be bought back would be 38,314,176 equity shares (the maximum buy back shares)," it added.

The company said it has kept Rs 500 crore as minimum buyback size or 50 per cent of the total target. The offer will remain open till March 15 or as determined by JSPL's Board after attaining the minimum buy back target, it added.

The buyback price of Rs 261 per share is 7.21 per cent premium to the closing price of Rs JSPL's shares on the BSE. JSPL Chief Financial Officer K Rajagopal had said on August 30 that through the buyback offer, it wants to give a signal to its investors that company's fundamentals are strong and it is on track to achieve its growth plans.

Companies use share buyback as a tool to improve their share price valuations, though it reduces the quantum of free float shares in the open market. As on June, 2013, JSPL promoters had 59.12 per cent stake in the company, while institutional investors had 27.50 per cent stake. Rest were being held by the general public. The company scrip closed at Rs 233.35 apiece on the BSE, up 2.93 per cent from the previous close.

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Chennai sees a surge in luxury hotels

With economic slowdown impacting occupancy rates, some top-end luxury hotels in Chennai are now considering converting into residential properties. But the demand-supply mismatch has not deterred the Taj Group from opening its 5th property in the city, reports CNBC-TV18's Poornima Murali.

Also Read: Examine delay in auction of Taj Mansingh hotel: CVC to NDMC
 
Chennai is seeing a surge in luxury hotels. After the launch of three international brands last year, the Taj Group is the latest to open doors of its 5th property in the city - The Gateway Hotel with over 200 rooms at an investment of about Rs 150 crore.
 
With this latest entrant, the city now has over 28 branded hotels - including Grand Chola, Park Sheraton, Radisson and Park Hyatt. Add to this, more high-end projects including SRM's Novotel, Holiday Inn Express in Mahindra City, Le Meridian Chennai, Lemon Tree and Park Regent, which are under construction.

The total number of rooms in the city has increased from 4,788 in 2012 to 5826 in 2013 - a 23 percent rise in the inventory. However, the influx of new hotels, combined with a fall in occupancy rates due to the slowdown is leading to a demand-supply mismatch in the city.
 
N Hariharan, Office Director, Cushman & Wakefield, says: "If you look at 2008-2012, we have seen close to about 3,400 keys enter the market, out of which Luxury segment contributing predominantly. Close to about 1,250 keys have entered the upper-scale luxury market."

There is a clear over supply in the market. And with the average occupancy rate on weekdays falling to 55-60% and 20-25% on weekends, some big names are either being forced to offer discounts to attract customers or take more drastic measures like changing their entire strategy.
 
So, given these circumstances, why are we still seeing big ticket hotel launches in Chennai? Philippe H Charraudeau, Vice President & General Manager, ITC Grand Chola, says: "Growth in the number of branded hotels which has established itself in Chennai is because the economy of Tamil Nadu is looking good.  Far more investments are coming into Chennai from different sectors, be it automobile, IT, etc."

Also, hoteliers hope the rupee's depreciation will increase the number of foreign travellers and that could help occupancy rates in the near term.

08.11 | 1 komentar | Read More

Recalibrating future investments, says Baba Kalyani

Sep 05, 2013, 11.14 PM IST

Commenting on the slowdown in auto ancillary sector Baba Kalyani, CMD, Bharat Forge Limited said,"You have to calibrate investments based on what market conditions are."

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Recalibrating future investments, says Baba Kalyani

Commenting on the slowdown in auto ancillary sector Baba Kalyani, CMD, Bharat Forge Limited said,"You have to calibrate investments based on what market conditions are."

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Recalibrating future investments, says Baba Kalyani

Commenting on the slowdown in auto ancillary sector Baba Kalyani, CMD, Bharat Forge Limited said,"You have to calibrate investments based on what market conditions are."

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The slowdown in auto sector has also hit the auto ancillary companies. Auto ancillary manufacturers are treading with caution while making their investment decisions.

Commenting on the slowdown in the sector, major auto ancillary marker Baba Kalyani, CMD, Bharat Forge Limited said," You have to calibrate investments based on what market conditions are. Today, as I said earlier, in most of our business, if you're in the components sector, you make investments ahead of demand. We have already made the investments and we are recalibrating future investments. There is no sense in making investments today when you already have investments not being utilised. But our belief is that in the next 2-3 years this problem will be over.

Also read: Tata Motors to launch diesel Nano car by end of March

He further added," I don't even think it's a slowdown. I think it's a new reset of our economy and this is where we are going to start back from. If anyone thinks that we are going to get back to what we were 3 years ago in the next 6 months or 1 year, i don't think that's going to happen.

Raghupati Singhania MD, JK Tyre and Industries said, "We have been looking at de-risking the market. we have presence in Mexico and we are exporting out of there apart from catering to the domestic market. We are looking to opportunities in other emerging markets.

"I think this is a passing phase, maybe 18 months or so, and that much time I will take to set up new capacities. So by the time it's over, we should be there in the market place," he said.

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GSPC hikes CNG prices by Rs 3/kg; ind gas by Rs 1.90/unit

State-run GSPC Gas Company (GGC), the largest city gas distributor in Gujarat, today hiked prices of CNG by Rs 3 per kg, and of industrial gas by over Rs 1.90 per standard cubic metre (SCM).

Also Read: Gujarat Gas, GSPC sign MoU for long-term gas supply deal

"Price of industrial gas has been increased from Rs 35.50 to 37.40 per SCM (without taxes), while CNG prices have been increased from Rs 63.30 to Rs 66.30 per kg (with taxes)," a GSPC statement said.

GGC, the retail wing of Gujarat government-owned GSPC, operates in 21 major towns and cities, with a network of 120 CNG stations fueling around 65,000 vehicles everyday and has around 1,443 industrial customers.

According to industry sources, the hike in CNG prices comes in the wake of a sliding rupee against the dollar. Other (City Gas Distribution) CGD players in Gujarat like Adani, Gujarat Gas, Sabarmati, GAIL, Charotar, HPCL may follow the suit and raise CNG prices, industry sources said. "The gas sourcing pool of each company varies. The boards of respective CGDs in Gujarat will take a look on how to offset the losses on account of rupee slide as majority of them are dependent on gas imports from overseas," they said.

GGC has been demanding allocation of cheaper domestic gas from the Centre at par with the prices as it supplies to Delhi and Mumbai under the Administered Price Mechanism (APM). Citing non-allocation of cheaper natural gas from the Centre, GGC had hiked CNG prices by Rs 2 per kg, and of piped cooking gas by Rs 4 per standard cubic metre for first 30 SCM, in June this year.

Gujarat government levies 15 percent VAT on natural gas. GGC supplies gas to industry, largely in South Gujarat region, comprising Valsad, Vapi, Umbergaon, Hazira and Halol. It also supplies gas in Gandhinagar, Nadiad, Morbi, Thangadh, Sunredranagar and Rajkot, an official said.

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Insignificant exposure to NSEL, says Axis Bank

Sep 04, 2013, 11.07 PM IST

Axis Bank comments comes amid media reports that it and others two other banks have the highest exposure to NSEL.

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Insignificant exposure to NSEL, says Axis Bank

Axis Bank comments comes amid media reports that it and others two other banks have the highest exposure to NSEL.

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

Insignificant exposure to NSEL, says Axis Bank

Axis Bank comments comes amid media reports that it and others two other banks have the highest exposure to NSEL.

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Axis Bank today said its exposure to National Spot Exchange Ltd is insignificant and it has sufficient collateral.

Also Read: NSEL fiasco: Banks' exposure at around Rs 3,000-4,000cr

The National Spot Exchange Ltd (NSEL), promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is facing the problem of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after it suspended trade on July 31 on the government direction.

"We wish to clarify that the total exposure, direct and indirect of Axis Bank to NSEL is insignificant. We have adequate collateral to back these exposure," Axis Bank said in a statement. Axis Bank comments comes amid media reports that it and others two other banks have the highest exposure to NSEL.

08.11 | 0 komentar | Read More

Telecom space is flooded with big money

The real money seems to be in the telecom space. At USD 130 billion, Vodafone's exit from Verizon Telecom makes it the world's third-largest deal in the space. And Microsoft is spending over USD 7 billion to jump from a maker of phone software, to a maker of phones itself, report CNBC-TV18's Malvika Jain and Farah Bookwala.

Also Read: Microsoft to acquire Nokia's handset business for $7.2 bn

Vodafone's Votirio Colao has good reason to smile. The British telecom giant has signed on the dotted line and it will sell its entire 45 percent stake in its US wireless business joint venture, Verizon Wireless, to its US partner.

In the end, all it took for 'operation river', as the negotiations were called, to fructify was for the two CEOs - Vodafone's Vitorio Colao, and Verizon's Lowell McAdam - to spend some time next to each other on exercise cycles in a gym, and continue their conversation over breakfast.

By opting for a buyout instead of a merger, Verizon will get full access to the profits from America's largest mobile operator and with it fresh firepower to invest in its mobile network and fend off challengers in a tough market.

For Vodafone, the accord will allow it to return 71 percent of the net proceeds to shareholders. It will also allow for ramping up investment in its networks to set itself apart from rivals.

Vittorio Colao, CEO, Vodafone, says: "The size of the deal itself allows us to return 71% to shareholders. But, even the remaining 21% is large enough to strengthen the company and to allow us to accelerate our strategy, so the percentage might look small, the percentage retained, but the amount of money is robust enough for allowing Vodafone to have a great future."

There is also the fact that Vodafone will not be paying any tax on this transaction in the UK. Vittorio Colao, CEO, Vodafone, says: "We apply the rules , laws - tax laws which are standard in any of these jurisdictions. We will pay tax in the US because there are tax liabilities generated there. We are not going to have a taxable income in the Netherlands because there is a tax exemption. But if the transaction happened in the UK, there would be no tax liability here as well because there are exactly the same provisions. Important thing is 54 billion pounds will go back to shareholders, those who want to sell will have to pay their own taxes, but it will be a great benefit to all."

The deal will also provide a fillip to Vodafone's capex plans for European countries like Germany, under its 6 billion pound investment plan called Project Spring.

But it's not just the mobile services business that's playing with the big bucks. Software giant Microsoft wants a bigger foot-hold in the mobile telecom space.

So after 2 years of providing Helsinki-based Nokia with its Windows phone software, Microsoft has agreed to buy Nokia's main handset business for over USD 7 billion. This is in keeping with Microsoft's retiring CEO Steve Ballmer's dream to remake Microsoft into a gadget and services company like Apple before he departs.

For Nokia, this is a way out from a losing battle against rivals like Samsung and Apple. The deal will see Nokia's Canadian boss Stephen Elop, who incidentally ran Microsoft's business software division before jumping to Nokia in 2010, returning to Microsoft as the head of its mobile devices business. And while this has the Finnish people dubbing him a Trojan horse, Nokia's chairman Risto Siilasmaa says the decision came after nearly 50 board meetings to explore alternatives to a sale, before deciding that this was in shareholder interest.

Both these deals mark a turning point for the global telecom space. But India, which is a strong market for Vodafone, Microsoft and Nokia, may not see much change on the ground. Vodafone is still in wait-and-watch mode as far as further investments into the country are concerned. And experts say neither Microsoft nor Nokia's ground operations in India will see much of an overhaul.

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Gujarat Gas, GSPC sign MoU for long-term gas supply deal

Gujarat Gas Company Ltd (GGCL) and Gujarat State Petroleum Corporation Ltd (GSPC) today entered into a Memorandum of Understanding (MoU) for a long-term gas supply deal, a top company official said.

The MoU was signed by GSPC Managing Director Tapan Ray and GGCL's Managing Director Sugata Sircar at Gandhinagar in Gujarat. As per the MoU, GSPC has agreed to supply 0.85 million standard cubic metres per day (mmscm) of gas per day to GGCL from January 1, 2014 to June 30, 2025, a statement issued here said.

Also read: Govt not honouring contracts on KG-D6 gas block: Reliance

"The signing of this MoU is an important step towards securing long-term gas supplies for industrial, domestic, commercial and CNG customers of Gujarat Gas," Sugata Sircar said. "Out of around 2.8 mmscm of gas per day used by GGCL's customers currently, nearly 50 per cent is RLNG (re-gasified liquefied natural gas) which is largely sourced through medium term contracts or from spot markets. Under the MoU with GSPC, we will be able to source assured supply of 0.85 mmscm of RLNG per day for 11.5 years," Sircar added.

The MoU is effective till December 31 this year or the signing of the relevant Gas Sales Contracts (GSC), whichever is earlier. The price of gas will be determined in the relevant GSCs and it is expected to be formula based, the release said. GGCL, a subsidiary of Gujarat Distribution Network Ltd (GDNL), currently distributes approximately 2.8 mmscmd of natural gas. GGCL continues to be India's premier gas distribution company with a proven expertise in distributing gas to the entire range of customers - industrial, commercial, domestic and CNG.

GGCL distributes gas to about 404,000 industrial, commercial and domestic customers through its pipeline network and CNG to over 200,000 vehicles through 56 retail outlets.

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ITC hikes prices of select cigarette brands

Sep 02, 2013, 10.53 PM IST

The price of 'Gold Flake Kings' pack consisting of 10 cigarettes will now cost Rs 75, up from Rs 68 earlier. A pack of 'Gold Flake Lights' consisting of 20 cigarettes will cost Rs 75 compared to Rs 68 earlier.

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ITC hikes prices of select cigarette brands

The price of 'Gold Flake Kings' pack consisting of 10 cigarettes will now cost Rs 75, up from Rs 68 earlier. A pack of 'Gold Flake Lights' consisting of 20 cigarettes will cost Rs 75 compared to Rs 68 earlier.

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

ITC hikes prices of select cigarette brands

The price of 'Gold Flake Kings' pack consisting of 10 cigarettes will now cost Rs 75, up from Rs 68 earlier. A pack of 'Gold Flake Lights' consisting of 20 cigarettes will cost Rs 75 compared to Rs 68 earlier.

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Diversified business group ITC Ltd today said it has increased prices of select cigarette brands, Gold Flake and Classic by over 10 per cent, the second hike in as many months.
    
The price of 'Gold Flake Kings' pack consisting of 10 cigarettes will now cost Rs 75, up from Rs 68 earlier. A pack of 'Gold Flake Lights' consisting of 20 cigarettes will cost Rs 75 compared to Rs 68 earlier.
    
Likewise, the 'Classic' pack consisting of 20 cigarettes will now cost Rs 150 from Rs 136 earlier. When contacted, a company spokesperson confirmed the hike in prices. The packs with new prices are already in the market.

Also read: ITC shares surge after it raised Gold Flake prices: UBS

The company, which had hiked prices of its Gold Flake cigarette brand by over 7 per cent in July, had earlier said that steep hike in excise duty on cigarettes impacted sales. ITC, which is the market leader in cigarettes in India, sells various brands including India Kings, Classic Gold Flake and Navy Cut among others.
    
The company's cigarettes business grew by 7.05 per cent to Rs 3,537.39 crore during the first quarter ended June 30, 2013. It produces cigarettes at plants located in Bengaluru, Munger (Bihar), Saharanpur (UP), Kolkata and Pune.

 Besides FMCG, ITC has interests in hotels, paperboards and packaging, tobacco products and information technology. Shares of ITC Ltd today closed at Rs 319.40 apiece at the end of day's trade, up 3.75 per cent from the previous close on the BSE.

Tags: ITC Ltd, Gold Flake Kings, India Kings, Saharanpur (UP), , Munger (Bihar), , Bengaluru, Pune, Kolkata, FMCG, BSE

CHATS

03 Sep- 10:00hrs

Property Guide

Anuj Puri,

Chairman & Country Head
, Jones Lang LaSalle India

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Vodafone to return $84 bn to investors after Verizon deal

Vodafone said its shareholders would receive about USD 84 billion in cash and shares after the company completes the sale of its 45 percent stake in Verizon Wireless to Verizon Communications for USD130 billion.

Under the agreement announced on Monday, the third-largest deal in corporate history, Verizon will take full control of the largest mobile operator in the US by paying Vodafone USD 58.9 billion in cash, USD 60.2 billion in Verizon stock and an additional USD 11 billion from smaller transactions.

Also Read: Vodafone investors split on best use of Verizon windfall

All the stock will go to shareholders, plus USD 23.9 billion in cash, after the deal is finalised, likely to be in the first quarter of 2014.

Vodafone also said it would plough 6 billion pounds into improving its mobile and broadband networks across its footprint over the next three financial years. It said the investment programme dubbed Project Spring would help it boost growth to underpin its increasing dividend payments to shareholders.

It will have a US tax liability of around USD 5 billion.

While Vodafone will lose its best asset, it will get a war chest it will use to reward shareholders and bolster its European operations, which are under pressure from recession and tough regulation.

"We are pleased that our long and successful partnership with Verizon will yield a significant return of value to our shareholders, rewarding them for their continuing support of Vodafone's investment strategy," Chief Executive Vittorio Colao said.

"We wish Lowell and the Verizon team continuing success over the years ahead."

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