CCI clears Wipro GE Healthcare-GE India Technology deal

The Commission observed that while Wipro GE is engaged in manufacturing and distributing various medical equipment and solutions including life sciences equipment and devices, GE India Technology is into multi-disciplinary research and development in various technologies such as bio-technology.

The Competition Commission has approved medical equipment firm Wipro GE Healthcare's proposed deal to acquire GE group's assets related to bio-technology and life sciences.

According to the Competition Commission of India (CCI) "the proposed combination is not likely to have appreciable adverse effect on competition in India". Under the deal, Wipro GE would acquire assets of GE India Technology Centre -- part of US-headquartered conglomerate General Electric group -- used in the research areas of bio-technology and life sciences.

Also read: Piramal, Navin Fluorine to form healthcare JV

The Commission observed that while Wipro GE is engaged in manufacturing and distributing various medical equipment and solutions including life sciences equipment and devices, GE
 India Technology is into multi-disciplinary research and development in various technologies such as bio-technology.   '

"Accordingly, it is observed that there is no horizontal overlap between the businesses of Wipro GE and GE India Technology Centre Ltd," CCI said in an order released today. Further, CCI noted that "the proposed combination would facilitate vertical integration of the businesses of Wipro GE as it would enable Wipro GE to sell equipment as well as provide related research and other support services in biotech and life-sciences areas".

"It is also observed that GE India Technology Centre renders 100 per cent of its services to the affiliates of GE group across the world, including India," CCI said. "Therefore, this vertical integration is unlikely to result in any appreciable adverse effect on competition," the fair trade regulator added. The 'Asset Purchase Agreement' was entered between the two companies on July 7, 2014 following which they had approached the competition commission for approval in the same month.

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Indian Bank to revise interest rates on FCNR (B) deposits

"For FCNR (B) deposits, in USD, the revised interest rate has been revised to 2.34 percent (from 2.36) for deposits of one year and above but less than two years", the Chennai-based bank said in a statement

Public sector  Indian Bank will revise its interest rates on the foreign currency non-resident (banking) term deposits from tomorrow.

"For FCNR (B) deposits, in USD, the revised interest rate has been revised to 2.34 percent (from 2.36) for deposits of one year and above but less than two years", the Chennai-based bank said in a statement.

For deposits of two years and above but less than three years, interest rates have been revised to 2.71 percent from the existing 2.76 percent. Interest rates have been revised to 3.64 percent for deposits of three years and above but less than four years from the existing 3.71 percent, it said.

For deposits of four years and above but less than five years, interest rates have been revised to 4 percent from existing 4.11 percent. Interest rates have been fixed at 4.27 percent for deposits upto five years only from the existing 4.40 percent, the statement said.

Indian Bank stock price

On August 22, 2014, Indian Bank closed at Rs 136.65, down Rs 7.2, or 5.01 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 22.56 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 6.06. 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 0.46.

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NDA completes 100 days: Coal auction still a concern?

Whatever be the verdict of the Supreme Court on September 1, auction of coal blocks, an increase in coal imports will only lead to a spike in electricity tariff. The government will have a tough time striking a balance to achieve rational electricity tariff and deliver on its promise of 24x7 power supply.

Continuing with the theme of 100 days agenda of the NDA-led government, the Supreme Court's order on coal block allocation has added to the uncertainty surrounding the sector. This is just one of the many challenges facing the coal minister Piyush Goyal. CNBC-TV18's Anshu Sharma briefs with the details of achievements and the road ahead.

Clubbing the coal and power ministries was one of the best ideas to push the infra agenda of the NDA government. The new minister's mission is to enhance coal production, bring in transparent policies to attract private investments.

So far, Piyush Goyal has managed to get few power projects inaugurated by the Prime Minister Narendra Modi across India, which were initiated by the UPA govt. Goyal has visited 9 states and has had meetings with 8 states in the capital to iron out issues of power and coal sector but a real change is yet to be seen.

However, Goyal's plans could suffer a huge setback as the Supreme Court verdict may derail government's plan to fast-track policy making or attract investment when the domestic industry dependent on coal is bleeding red.

Piyush Goyal had earlier said, "We welcome supreme court order, we will look at auctioning of coal blocks."

If the government looks at auctioning coal blocks, it will have to start amending laws under Coal Mines Nationalisation Act, bring in a tough coal regulator and rework bid document for auctions. The recent response to coal block auction was tepid industry will have to be taken in confidence before auction is kick-started.

Whatever be the verdict of the Supreme Court on September 1, auction of coal blocks, an increase in coal imports will only lead to a spike in electricity tariff. The government will have a tough time striking a balance to achieve rational electricity tariff and deliver on its promise of 24x7 power supply.

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4 auto manufacturers to invest Rs 11,510 cr in Maharashtra

Ahead of the Assembly elections, Maharashtra government today signed four agreements with leading auto companies, involving an investment of Rs 11,510 crore.

The agreements were signed with domestic auto majors Tata Motors ,  Mahindra and Mahindra and Bajaj Auto , and German luxury car major Volkswagen, following the government restoring VAT set-off claims to gross sales.

Chief Minister Prithviraj Chavan, state industries minister Narayan Rane, M&M chairman Anand Mahindra, Tata Motors executive director for commercial vehicles Ravi Pishrody and Volkswagen executive director Pankaj Gupta were present on the occasion.

Under the agreements, Tata Motors and Mahindra will invest Rs 4,000 crore each, Bajaj will pump in Rs 2,000 crore while Volkswagen will invest Rs 1,510 crore in existing facilities.

In April 2011, the state amended the VAT Act to make tax set-off claim applicable on net sales and not on gross sales. Auto industry complained that this took away the competitive advantage of the Chakan-Talegaon auto hub. Some companies had even threatened to pull out their investments from the state. Under the tweaked norms and the state's industrial mega project policy announced in June 2005, large auto investors and also non-auto sector investors with an investment of Rs 1,500 crore or more are entitled for VAT set-off claim on gross sales. However, the claim will not exceed 12.5 percent of the total eligible VAT refund in a year.

"It was an error of judgement at that time," Chavan said, adding that the tweaking of VAT norms will help the industry. "We have already invested Rs 4,000 crore in the Chakan plant so far and are looking at investing an additional Rs 4,000 crore during next seven years," Mahindra said.

Of the four projects, three will be in Pune district and one in Waluj in Aurangabad. Total investment of all four projects together will result in employment opportunities for 6,270 people, the government said.

While Mahindra's Rs 4,000 crore investment to expand capacity at the Chakan plant will create 2,500 jobs, Tata Motors' investment of Rs 4,000 crore will create 1,200 jobs. Volkswagen will invest Rs 1,510 crore to manufacture diesel engines and related parts of backward integration at the Chakan plant, creating 570 jobs.

Bajaj Auto's Rs 2,000 crore investment will come in two phases for capacity expansion from 22,80,000 to 33,60,000 units in first phase and from 33,60,000 to 38,40,000 units in second phase at Waluj. On completion of the project, it would create 2,000 jobs.

M&M has plans to increase its vehicle manufacturing capacity in Chakan to 4,50,000 units over the next 18 months, from the present 3,20,000. Mahindra & Mahindra, which currently employs 4,000 people
in the state, also plans to recruit another 2,000. The Chavan government had signed some 32 agreements with the private companies, including Tata, Mercedes, Bosche, Shree Uttam Steel, among others, entailing an investment of Rs 23,850 crore in February, just days before the UPA government announced general elections.

Under the 2005 industrial mega project policy, the state has so far approved 415 mega projects with assured investment of Rs 3,23,902 crore with the potential to generate 3.63 lakh jobs, the government said.

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NDA completes 100 days: Coal auction still a concern?

Whatever be the verdict of the Supreme Court on September 1, auction of coal blocks, an increase in coal imports will only lead to a spike in electricity tariff. The government will have a tough time striking a balance to achieve rational electricity tariff and deliver on its promise of 24x7 power supply.

Continuing with the theme of 100 days agenda of the NDA-led government, the Supreme Court's order on coal block allocation has added to the uncertainty surrounding the sector. This is just one of the many challenges facing the coal minister Piyush Goyal. CNBC-TV18's Anshu Sharma briefs with the details of achievements and the road ahead.

Clubbing the coal and power ministries was one of the best ideas to push the infra agenda of the NDA government. The new minister's mission is to enhance coal production, bring in transparent policies to attract private investments.

So far, Piyush Goyal has managed to get few power projects inaugurated by the Prime Minister Narendra Modi across India, which were initiated by the UPA govt. Goyal has visited 9 states and has had meetings with 8 states in the capital to iron out issues of power and coal sector but a real change is yet to be seen.

However, Goyal's plans could suffer a huge setback as the Supreme Court verdict may derail government's plan to fast-track policy making or attract investment when the domestic industry dependent on coal is bleeding red.

Piyush Goyal had earlier said, "We welcome supreme court order, we will look at auctioning of coal blocks."

If the government looks at auctioning coal blocks, it will have to start amending laws under Coal Mines Nationalisation Act, bring in a tough coal regulator and rework bid document for auctions. The recent response to coal block auction was tepid industry will have to be taken in confidence before auction is kick-started.

Whatever be the verdict of the Supreme Court on September 1, auction of coal blocks, an increase in coal imports will only lead to a spike in electricity tariff. The government will have a tough time striking a balance to achieve rational electricity tariff and deliver on its promise of 24x7 power supply.

08.11 | 0 komentar | Read More

4 auto manufacturers to invest Rs 11,510 cr in Maharashtra

Ahead of the Assembly elections, Maharashtra government today signed four agreements with leading auto companies, involving an investment of Rs 11,510 crore.

The agreements were signed with domestic auto majors Tata Motors ,  Mahindra and Mahindra and Bajaj Auto , and German luxury car major Volkswagen, following the government restoring VAT set-off claims to gross sales.

Chief Minister Prithviraj Chavan, state industries minister Narayan Rane, M&M chairman Anand Mahindra, Tata Motors executive director for commercial vehicles Ravi Pishrody and Volkswagen executive director Pankaj Gupta were present on the occasion.

Under the agreements, Tata Motors and Mahindra will invest Rs 4,000 crore each, Bajaj will pump in Rs 2,000 crore while Volkswagen will invest Rs 1,510 crore in existing facilities.

In April 2011, the state amended the VAT Act to make tax set-off claim applicable on net sales and not on gross sales. Auto industry complained that this took away the competitive advantage of the Chakan-Talegaon auto hub. Some companies had even threatened to pull out their investments from the state. Under the tweaked norms and the state's industrial mega project policy announced in June 2005, large auto investors and also non-auto sector investors with an investment of Rs 1,500 crore or more are entitled for VAT set-off claim on gross sales. However, the claim will not exceed 12.5 percent of the total eligible VAT refund in a year.

"It was an error of judgement at that time," Chavan said, adding that the tweaking of VAT norms will help the industry. "We have already invested Rs 4,000 crore in the Chakan plant so far and are looking at investing an additional Rs 4,000 crore during next seven years," Mahindra said.

Of the four projects, three will be in Pune district and one in Waluj in Aurangabad. Total investment of all four projects together will result in employment opportunities for 6,270 people, the government said.

While Mahindra's Rs 4,000 crore investment to expand capacity at the Chakan plant will create 2,500 jobs, Tata Motors' investment of Rs 4,000 crore will create 1,200 jobs. Volkswagen will invest Rs 1,510 crore to manufacture diesel engines and related parts of backward integration at the Chakan plant, creating 570 jobs.

Bajaj Auto's Rs 2,000 crore investment will come in two phases for capacity expansion from 22,80,000 to 33,60,000 units in first phase and from 33,60,000 to 38,40,000 units in second phase at Waluj. On completion of the project, it would create 2,000 jobs.

M&M has plans to increase its vehicle manufacturing capacity in Chakan to 4,50,000 units over the next 18 months, from the present 3,20,000. Mahindra & Mahindra, which currently employs 4,000 people
in the state, also plans to recruit another 2,000. The Chavan government had signed some 32 agreements with the private companies, including Tata, Mercedes, Bosche, Shree Uttam Steel, among others, entailing an investment of Rs 23,850 crore in February, just days before the UPA government announced general elections.

Under the 2005 industrial mega project policy, the state has so far approved 415 mega projects with assured investment of Rs 3,23,902 crore with the potential to generate 3.63 lakh jobs, the government said.

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FTIL exits MCX by selling 5% stake for over Rs 200cr

In July, Jignesh Shah-led FTIL, the erstwhile promoter of MCX, had announced sale of its 15 per cent stake in MCX to Kotak Mahindra Bank for Rs 459 crore. Yesterday, commodity market regulator FMC had approved the deal with Kotak.

Financial Technologies  (FTIL) today exited country's largest commodity exchange MCX by selling its residual 5 per cent stake in the bourse, it had originally promoted, for over Rs 200 crore.

In July, Jignesh Shah-led FTIL, the erstwhile promoter of MCX, had announced sale of its 15 per cent stake in  MCX to  Kotak Mahindra Bank for Rs 459 crore. Yesterday, commodity market regulator FMC had approved the deal with Kotak.

"...pursuant to the applicable clauses of the listing agreement, please be informed that without prejudice to the legal rights and remedies, the company has further sold balance 5 per cent equity shares of MCX in the market," FTIL said in a statement.

"Post the above selling and subject to unlocking of balance shares by MCX to complete the condition precedent of Share Purchase Agreement (SPA), the company holds nil shares in MCX," it added.

MCX shares rose by 5.08 per cent to settle at Rs 856.85 apiece on the BSE. Its total market cap stands at Rs 4,370 crore at today's closing price. Based on this, the five per cent stake is valued at Rs 218 crore.

As per exchange data, SBI Life Insurance has bought over 3 lakh shares in MCX today.

FTIL originally held a 26 per cent stake in MCX. It has divested stake in MCX after market regulator FMC had declared the company unfit to run any exchange in the wake of Rs 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL).

The regulator had asked FTIL to reduce its stake in MCX to 2 per cent from 26 per cent.

Before the Kotak deal, FTIL had sold 6 per cent stake in MCX, including about 2 per cent sale to billionaire investor Rakesh Jhunjhunwala, in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent. Shah founded the Multi-Commodity Exchange or MCX in November 2003 and then went on to set up a stock exchange called MCX-SX.

Financial Tech stock price

On August 22, 2014, Financial Technologies closed at Rs 261.50, up Rs 2.50, or 0.97 percent. The 52-week high of the share was Rs 403.60 and the 52-week low was Rs 102.05.

The latest book value of the company is Rs 531.33 per share. At current value, the price-to-book value of the company was 0.49.

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Piramal, Navin Fluorine to form healthcare JV

In the first phase of development, the JV is expected to invest around Rs 120 crore in India, Piramal Enterprises said in a filing to BSE.

Piramal Enterprises  and Navin Fluorine International Ltd  have agreed to form a joint venture to develop, manufacture and sell speciality fluorochemicals with specific focus on applications in healthcare.

In the first phase of development, the JV is expected to invest around Rs 120 crore in India, Piramal Enterprises said in a filing to BSE.

"Piramal will hold 51 percent of the equity share capital of the proposed joint venture company and the remaining 49 percent will be held by Navin," it added.

The company said that with the increasing importance of fluorine in life sciences, there is considerable potential to exploit synergies between the two partners.

Piramal Enterprises scrip closed at Rs 680.15, down 2.26 percent, on the BSE.

Piramal Enter stock price

On August 22, 2014, Piramal Enterprises closed at Rs 680.15, down Rs 15.7, or 2.26 percent. The 52-week high of the share was Rs 791.00 and the 52-week low was Rs 482.65.

The company's trailing 12-month (TTM) EPS was at Rs 150.76 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 4.51. The latest book value of the company is Rs 528.91 per share. At current value, the price-to-book value of the company is 1.29.

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Reliance Jio, BSNL sign tower sharing deal

"The rent for ground towers will be Rs 35,000 per month and Rs 21,000 per month for rooftop towers if Reliance Jio commits leasing of 1,500 towers in first year," BSNL Director (Consumer Mobility) Anupam Shrivastava told PTI.

Reliance Jio Infocomm (RJIL) has signed a deal with state-owned telecom firm BSNL for leasing around 4,000 mobile towers. As per the deal, BSNL will be offering a base rate of Rs 38,000 per month for ground based towers (GBT) and Rs 24,900 per month for rooftop based towers (RBT). BSNL however, will offer discounted rates if Reliance Jio commits leasing of at least 1,500 towers in the first year.

"The rent for ground towers will be Rs 35,000 per month and Rs 21,000 per month for rooftop towers if Reliance Jio commits leasing of 1,500 towers in first year," BSNL Director (Consumer Mobility) Anupam Shrivastava told PTI. He added there is also a provision of 5 percent discount if RJIL commits leasing of at least 1,000 towers within three months.

When contacted, no response was received from RJIL on the deal. Reliance Jio already has an agreement with Bharti Airtel , Reliance Communications , Viom Network, American Tower Company and Ascend Telecom Infrastructure to utilise their infrastructure. The company holds pan-India broadband wireless access spectrum that can be used for 4G services. Besides, it won radiowaves in the 1800 Mhz band, widely known as 2G spectrum, which is also being used for 4G services worldwide.

RJIL is the first telecom operator in the country to get a unified licence for all 22 service areas in India. The unified licence, which it received in October, will allow RJIL to offer all telecom services, including voice telephony.

Bharti Airtel stock price

On August 22, 2014, Bharti Airtel closed at Rs 368.00, down Rs 1.1, or 0.3 percent. The 52-week high of the share was Rs 386.80 and the 52-week low was Rs 279.25.

The company's trailing 12-month (TTM) EPS was at Rs 19.52 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 18.85. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.20.

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Indian infra, defence ripe for investment: UK Deputy PM

"Modi has made it quite clear that his central purpose and ambition in his government is to unlock the dynamism of the Indian economic," UK's Deputy Prime Minister Nick Clegg.

Prime Minister Narendra Modi's charms seem to have rubbed off on the British government. In an exclusive conversation with CNBC-TV18's Menaka Doshi, UK's Deputy Prime Minister Nick Clegg said that the Indian infra and defence sectors are ripe for investment .

"The opportunities are huge. If you bear in mind that the relationship is already very strong, sometimes we overlook how strong it is. After all Britain is the largest investor in India from all the G20 countries and in fact by some measures by quite some distance, but also conversely Indian investment in Britain is greater than all investment put in by the rest of the European Union put together," he added.

He further added that Modi's central purpose and ambition is to unlock the dynamism of the Indian economic, which was hit by slow decision making, regulatory and administrative obstacles. "This presents a massive opportunity for British investments and further two-way traffic in the commercial relationship between our two nations," he said.

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Mahindra launches Centuro Rockstar at Rs 43,700

By introducing the Centuro Rockstar at an attractive price point, Mahindra has expanded its popular Centuro portfolio to target the mass 100-110 cc consumers, the company said in a statement.

Mahindra Two Wheelers today launched 110-cc motorcycle Centuro Rockstar, priced at Rs 43,700 (ex-showroom). 

By introducing the Centuro Rockstar at an attractive  price point, Mahindra has expanded its popular Centuro portfolio to target the mass 100-110 cc consumers, the company said in a statement.

Also read: New launches, discounts boost July car sales: Ventura

"With the launch of the Centuro Rockstar, we now have a full range of truly differentiated motorcycles, each of which delivers a tremendous value proposition as part of the award winning Centuro brand," Mahindra Two Wheelers Ltd Chief of Operations Viren Popli said.

Each Centuro now addresses a different consumer sub-segment in the large 100-110 cc category, he added. 

The Centuro Rockstar comes with various features including flip key, Rockstar graphics, LED brake light and extra long seat.

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Here's more on Shree Cement-JP Associate deal

Shree Cement will acquire the 1.5 million tonne cement grinding unit of Jaiprakash Associates at Panipat in Haryana, for Rs 360 crore. CNBC-TV18's Pragya Bhardwaj has more details on the contours of this deal.

Shree Cement  will acquire the 1.5 million tonne cement grinding unit of  Jaiprakash Associates at Panipat in Haryana, for Rs 360 crore. CNBC-TV18's Pragya Bhardwaj has more details on the contours of this deal.

Shree Cements stock price

On August 25, 2014, Shree Cements closed at Rs 7862.00, down Rs 177.5, or 2.21 percent. The 52-week high of the share was Rs 8160.00 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 34.47. 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 7.13.

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IndiGo losing senior pilots; 40 commanders quit in 1 year

Low-cost carrier IndiGo, which lost its market share by a per cent in July to 30.7 per cent, has also lost as many as 40 commanders or senior pilots mainly to Gulf carriers in the last one year.

While most of these commanders quit the airline for better prospects, some of them also parted ways due to the work culture, sources in the Gurgaon-based airline told PTI.

"Around 40 commanders have parted ways with the airline over the past one year as most of them got lucrative offers from Gulf carriers," a source said.

Text messages sent to IndiGo President Aditya Ghosh and airline's PR agency for a comment on the issue did not yield any response.

According to recent DGCA (Directorate General of Civil Aviation) data, Indigo's market share stood at 30.7 per cent in July this year over 31.6 per cent in June.

Of the around 900 pilots, half of them being commanders, sources said, "the migration accounts for nearly 10 per cent of total loss of commanders."

According to sources, Gulf carriers, including Emirates and Qatar Airways, have hired Indian pilots in big numbers in recent months and most of the IndiGo pilots have opted for these airlines.

"Besides tax-free salaries, these airlines also offer a better work environment. Though most of the pilots have left the airline for greener pastures, a few of them also left for better work culture," sources said.

Run by InterGlobe Aviation, IndiGo is one of the two domestic carriers, the other being the Wadia Group-run GoAir, which claim to be profitable.

The airline is likely to hit the capital market next year.

The Foreign Investment Promotion Board (FIPB) has already granted conditional approval to the proposal of InterGlobe Aviation, the holding company of IndiGo, for fresh foreign direct investment in the private carrier.

As per the proposal, equity holding of IndiGo's promoter Rakesh Gangwal through Caelum Investments will be classified as NRI investment and free the FDI limit for fresh investment.

Gangwal through Caelum Investments (incorporated in Delaware, US) holds a 47.88 per cent stake in InterGlobe.

Rahul Bhatia owns the remaining stake in the company.

According to FDI rules, foreign companies and foreign airlines are allowed to hold up to a 49 per cent stake in an Indian airline. NRIs are permitted to hold up to 100 per cent in an Indian carrier.

Currently, Gangwal's stake is classified as FDI even though a group of NRIs hold the majority stake in Caelum Investments. As per sources, the proposal is that Caelum will be merged into InterGlobe Aviation. The 147,000 equity shares held by Caelum in InterGlobe Aviation will be cancelled.

In a cashless transaction, InterGlobe Aviation will issue 147,000 equity shares having face value of Rs 1,000 to NRI owners of Caelum in proportion to the voting units held by them.

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Sebi makes fresh bid to find Sahara investors;sets deadline

Sebi also said that income tax would be deducted at source, wherever applicable, unless it receives necessary documents for claim of tax exemption along with the refund application.

Sebi also said that income tax would be deducted at source, wherever applicable, unless it receives necessary documents for claim of tax exemption along with the refund application.

In case of change in marital status or if the minor bondholder has attained the age of majority, such investors would need to submit necessary evidence in support of such change in status. Sebi has also asked the bondholders to contact its toll-free telephone helpline for any query.

The application form requires the bondholders to affix a recent photograph and provide details like name, occupation, address, telephone number, PAN (if available), investment details -- account number, number of bonds, amount invested and mode of investment (cash, cheque or draft), as also the investor's bank account details for direct transfer of amount.

The bondholder is also required to give an undertaking, attesting the details in application form with signature or a thumb impression, to return the money along with applicable interest if the declaration subsequently proves to be false.

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Pearl Agrotech to move SAT against Sebi order

Sebi has cracked the whip on Rajasthan-based real estate major and has asked it to refund Rs 50,000 crore to people who invested in its collective investment scheme.

Facing a Sebi order with charges of running an illicit money pooling scheme worth about Rs 50,000 crore, Pearl Agrotech Corporation (PACL) today said it will approach the Securities Appellate Tribunal (SAT)  against the directive of the capital markets regulator.

"Sebi has unfortunately failed to recognize the submissions of the company that it can't be treated like a CIS. The company would now appeal this order before the Securities Appellate Tribunal," PACL said in a statement after the Sebi order.

"PACL limited, in its submission to the Sebi bench had submitted that it is not running a CIS. "Further, the company has sufficient asset holdings vis-a-vis the money raised for its real estate business," the company said. PACL further said it "would also like to remind its customers that it has always kept their interest paramount and would continue to do so".

"We assure our customers that their investments are safe& their interests would not be jeopardized," the company added. Sebi in its order earlier this evening asked PACL and its promoters and directors to refund investors' money within 3months and immediately stop raising money from all their collective investment schemes, after finding them guilty of raising close to Rs 50,000 crore through unauthorised CIS activities.

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All cos must apply 2-step payments for credit cards: RBI

The announcement on Friday comes after local taxi companies had complained that Uber was not following the two-step verification process required for credit card transactions in India, according to media reports.

The Reserve Bank of India (RBI) said that all transactions involving domestic credit cards must follow rules requiring additional verification, a stance that could impact companies such as Uber Technologies Inc that provide more simple app-based purchases.

The announcement on Friday comes after local taxi companies had complained that Uber was not following the two-step verification process required for credit card transactions in India, according to media reports.

All Uber payments are directly processed using the customer's stored credit card information in a simple process that bypasses any monetary exchange between drivers and users.

Although the RBI did not specifically address any company, it noted "it has come to our notice" cases in which domestic credit card transactions avoided the additional verification process by using an overseas payment system.

The RBI noted companies would have until Oct. 31 to ensure the two-step verification process was being followed, while noting that payments must be routed through a domestic bank and settled in Indian rupees.

"It is advised that entities adopting such practices leading to wilful non-adherence and violation of extant instructions should immediately put a stop to such arrangements," the RBI said in a circular.

San Francisco-based Uber did not immediately respond to an e-mail from Reuters seeking comment.

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Uber's India ride gets bumpy with RBI rule violation

The Reserve Bank notification does not specify the company Uber or any other company for that matter. However, it has only observed that certain credit card transactions are violating FEMA rules.

Global tax app Uber's India ride just got bumpy as the Reserve Bank of India has declared that the company cannot use its international payment gateway as it is in violation of FEMA rules.

The Reserve Bank notification does not specify the company Uber or any other company for that matter. However, it has only observed that certain credit card transactions are violating FEMA rules.

Let me just explain to you what the notification means. Currently most of the credit card transactions require a two-stage authentication. In the first stage the customer gives details of the credit card that is visible on the card and in the second stage, the customer gives a one time pin which is not on the card but which he receives via a message on his phone.

RBI has observed that some of the credit card transactions are not following this two stage authentication. These transactions are being routed via an international payment gateway, which does not require this two-stage authentication and this is mainly done purely for convenience sake and not keeping in mind the security aspect. So, RBI believes that routing these transactions through an international payment gateway or a bank situated overseas results in foreign exchange outflow and therefore violates FEMA.

Therefore, RBI has said that most of these credit card transactions that happen between two residents in India or domestically should be settled and routed domestically itself. So, this comes in the backdrop or in the wake of the recent complaints that has been raised against Uber that is routing its payments through the international payment gateway.

Purely for convenience sake, Uber collects credit card details of the customer at the time of registration and after which there is a standing instruction to deduct the money from the credit card.

RBI believes that routing these transactions that have actually happened in India through an international payment gateway is a risk for the customer and therefore there should be a two stage authentication that Uber has to follow.

With the RBI order coming in, Uber will have to review its payment authentication process going forward.

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No buyer for Star's stake in Balaji Telefilms: Star India

Star Group which had bought 21 percent stake in Balaji in 2004 for an amount of Rs 123 crore, is desperate for an exit. In an exclusive conversation with CNBC-TV18, Star Group's legal counsel, Deepak Jacob, said that they are in search of a buyer to exit their 21 percent stake completely, but are unable to find their right price.

Star Group which had bought 21 percent stake in Balaji in 2004 for an amount of Rs 123 crore, is desperate for an exit. In an exclusive conversation with CNBC-TV18, Star Group's legal counsel, Deepak Jacob, said that they are in search of a buyer to exit their 21 percent stake completely, but are unable to find their right price.

08.11 | 0 komentar | Read More

Are Indian telcos ready for digital boom?

According to a survey done by Google and AT Kearney, the internet or data usage can unlock Rs 20,000 crore of operating earnings for telecom companies in the next 3 years.

Digital technology is poised to be the next big growth driver for the telecom industry with a potential to add Rs 60,000 crore in just three years. A survey by Google and AT Kearney reveals that opportunities in digital technologies will boost not only revenues but profitability as well.

Do you pay your bills or book your movie tickets from your phone? If yes, then you are amongst growing class of m commerce consumers. According to a survey done by Google and AT Kearney, the internet or data usage can unlock Rs 20,000 crore of operating earnings for telecom companies in the next 3 years.

Nikolai Dobberstein, Partner, AT Kearney believes in the next 2 years, internet users will move from 200 million to nearly 500 million. Smartphone users will increase to 400 million. He says, "We also see the willingness to do online transactions will increase and we have estimated 160 people that are willing to do online transactions. So, it's a massive opportunity. What we do in the report is try to put a value to it."

The number say it all but its not just revenue and EBIDTA potential. Telcos could also benefit from significant cost savings. Google and AT Kearney have identified four areas of opportunity.

E-store and e-care, i.e. online recharges for mobile phones. This could save of almost one billion dollars; media and content services can add USD 6billion in additional data and content

Mobile business apps for SMEs can capture USD 1 billion in revenues and M payment which is paid app and content transactions.

Neeraj Gupta, Industry Director - Tech and Telecom, Google India says, "There is enough evidence to show that telcos can go down that journey. We have seen that from operators large & small. The bigger challenge is not the technology it is the change management. It is about changing the distribution structure & consolidating that."

While markets like Japan and Korea have taken up to 10 years to move from data to digital, the study finds that India is poised to leapfrog as the country has already embraced the internet, as seen by the recent e-commerce boom. All eyes now on how telcos embrace that opportunity.

08.11 | 0 komentar | Read More

Myntra enters new spaces post merger with Flipkart

The next one and a half yrs will be crucial for Myntra as it gears up to grab a bigger chunk of the fashion retail pie... especially with competition heating up from the other biggie Arvind, which is getting into the personalised styling space as well.

Apparel e-commerce Myntra has been on a roll post its collaboration with Flipkart. The ecommerce fashion retailer has now entered personalised online style service post launching more brands under private labels and foraying into premium designer collection.

Mukesh Bansal, CEO, Myntra, Head-Fashion, Flipkart says, "We've got great chemistry between Flipkart management team and Myntra management team. We operate the biz independently while we are strategizing at the group level."

It is this strategising that Myntra is banking on to take its market share in the fashion retail space from the current 50 percent, to 70 percent. However, there are numerous threads that, if pulled, could unravel the fabric of its growth. Case in point: the Rs 1,000 crore fine imposed on Flipkart by the Enforecment Directorsate on allegations of FEMA violations. But Myntra refuses to be needled.

"We are in compliance with the law of the land and we have not violated anything. This is not something we spend time discussing. We have been collaborating with authorities and will continue doing that," Bansal adds.

The next one and a half yrs will be crucial for Myntra as it gears up to grab a bigger chunk of the fashion retail pie... especially with competition heating up from the other biggie Arvind, which is getting into the personalised styling space as well .

08.11 | 0 komentar | Read More

Deepak Fertilizers gets CCI nod to buy more stake in MCFL

The Competition Commission of India (CCI) has approved Deepak Fertilizers ' proposed additional stake buy in Vijay Mallya group firm Mangalore Chemicals and Fertilizers.

The approval from the fair trade watchdog paves the way for Deepak Fertilizers to make an open offer to acquire further 26 per cent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL).

CCI said the deal "is not likely to have appreciable adverse effect on competition in India".
Under the deal, Deepak Fertilizers' subsidiary SCM Soilfert would acquire up to 26 per cent shareholding in MCFL through an open offer in addition to 0.8 per cent stake buy through open market. MCFL is part of Vijay Mallya's UB Group.

Also Read: Deepak Fertilizers Q1 net drops 7% to Rs 39.85 crore

CCI approval pertains to both transactions.

"It is observed that in the chemicals segment, the product portfolios of MCFL and DFPCL (Deepak Fertilizers and Petrochemicals Corporation Ltd) are different as the chemical products of MCFL are not substitutable with those of DFPCL and vice versa," CCI said in an order dated July 30, but made public today.

Noting that the overlap between the two companies was restricted to the fertiliser segment, CCI also observed that Deepak Fertilizer did not manufacture urea while MCFL's share in that market was "minimal".

"Further, it is also noted that with respect to almost all their overlapping fertiliser products, the parties' presence is through trading only," the order said.

Deepak Fertilizers as well as Zuari are looking to takeover MCFL.

Capital market regulator Sebi, which had given its go-ahead to the proposed stake purchase by Deepak Fertilizer and Zuari Group in MCFL, had also ruled that their respective open offers can commence only after CCI nod.

Zuari Group is also in the race to buy additional 26 percent stake in MCFL and CCI order in this regard is awaited.

Either of the two open offers can start only within 12 working days from receiving CCI approval for the second deal.

The battle for MCFL between Deepak Fertilizers and Zuari Group was triggered in April 2013 when the latter bought about 10 per cent stake in Vijay Mallya firm through open market. Later, Deepak Fertilizers acquired 24.46 per cent stake in MCFL in July 2013. Then, Zuari group increased its stake to 16.43 per cent in the same month.

Earlier this year, Deepak Fertilizers further hiked its shareholding in MCFL to 25.31 percent - thereby triggering the mandatory open offer clause under Sebi norms.

In May, UB Group joined hands with the Zuari to ward off a hostile takeover bid by Deepak Fertilizers for MCFL.

Since Saroj Poddar-led Zuari group along with UB Group is looking to purchase 26 per cent in MCFL, they have to make an open offer under Sebi rules.

Deepak Fert stock price

On August 19, 2014, Deepak Fertilizers and Petrochemicals Coprn closed at Rs 159.20, up Rs 5.05, or 3.28 percent. The 52-week high of the share was Rs 185.05 and the 52-week low was Rs 82.00.

The company's trailing 12-month (TTM) EPS was at Rs 27.32 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 5.83. The latest book value of the company is Rs 169.05 per share. At current value, the price-to-book value of the company is 0.94.

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Eros Now acquires world wide rights of Zee TV shows

Eros International Media today said its on-demand entertainment portal Eros Now has acquired world wide rights of Zee TV shows.

Eros International Media today said its on-demand entertainment portal Eros Now has acquired world wide rights of Zee TV shows.

The partnership would allow Eros Now to showcase Zee's television content ranging from serials and soaps to reality shows, the company said in a statement.

Commenting on the development, Eros Now CEO R L Singh said:" Partnership with a leading television player like Zee for compelling content is a natural step to providing the very best of Indian entertainment to our consumers worldwide. We are very excited to bring these shows to the platform and are confident this content will be enjoyed worldwide."

Also Read: Zee Media Corporation Q1 net loss at Rs 17.5 cr

Zee Entertainment Enterprises Ltd MD & CEO Punit Goenka said: "It is a logical extension for us to make our popular programme available on leading online provider. By partenering with Eros Now, we hope to capture viewer from around the world with the best shows from Zee's library."

Established in 2012, Eros Now is a video on demand portal of the group. It has Eros film library along with third party content.

08.11 | 0 komentar | Read More

HCL Tech wins contract from Sydney Trains worth over $32 m

Sydney Trains provides train services in the Sydney central business district and metropolitan area. It underwent a major restructuring and was formally launched on July 1, 2013, replacing CityRail as the provider of metropolitan train services for Sydney (Australia).

HCL Technologies , country's fourth largest software services firm, has bagged a deal worth about AUD 35 million (over Rs 198 crore) from Sydney Trains to support and maintain 107 of its business applications.

Sydney Trains provides train services in the Sydney central business district and metropolitan area. It underwent a major restructuring and was formally launched on July 1, 2013, replacing CityRail as the provider of metropolitan train services for Sydney (Australia).

Also read: India's top 100 brands valued at USD 92.6bn; Tatas top list

"Under the contract, valued at AUD 34.9 million, HCL Australia Services will provide support and maintenance services for 107 business applications," a Sydney Trains spokesperson told PTI.

Last year, the rail operator had sought to replace a network of 11 different external suppliers which had been supporting and maintaining its business applications.

The partnership follows a recommendation from the 2012 NSW Commission Audit, which found 130 corporate systems in use across the transport cluster, and suggested that amount be reduced to between 8 and 24 in order to reap annual savings of
USD 100 million.

Sydney Trains operates 176 stations and provides 277 million customer journeys annually. HCL Technologies in Australia and New Zealand (ANZ) is headquartered in Sydney with offices and delivery centres at Melbourne, Canberra, Brisbane, Auckland and Wellington and servicing clients across Sydney, Melbourne, Brisbane, Perth, Auckland, Hamilton and Wellington.

HCL Tech stock price

On August 18, 2014, HCL Technologies closed at Rs 1527.30, down Rs 13.1, or 0.85 percent. The 52-week high of the share was Rs 1630.00 and the 52-week low was Rs 872.00.

The company's trailing 12-month (TTM) EPS was at Rs 85.44 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 17.88. The latest book value of the company is Rs 146.09 per share. At current value, the price-to-book value of the company is 10.45.

08.11 | 0 komentar | Read More

MCX board approves Kotak investment; to shy away from FTIL

In a move seen as an attempt to distance itself from Financial Technologies, the board has decided not to depend on one vendor for its software. Currently, FTIL is the only provider of software.

After a meeting today, the MCX board has given in an in-principle approval to Kotak Mahindra Bank  buying 15 percent stake for Rs 459 crore. In addition, it is also reworking with Kotak to renegotiate the terms of agreement of the contract in light of the PwC report.

The PwC report had earlier pointed out that around Rs 700 cr was spent by MCX for services availed of from FTIL and no evidence that MCX sought quoted from global or Indian technology while awarding these contracts.

In a move seen as an attempt to distance itself from Financial Technologies , the board has decided not to depend on one vendor for its software. Currently, FTIL is the only provider of software.

They are also likely to make changes to exit clause and reduce the tenure of software contract to 10 yrs from 33 yrs. MCX board, FTIL and FMC have also requested SEBI to waive the 2 percent cap on FTIL that prevents them from exiting their stake in MCX completely. After this waiver, FTIL will be allowed to sell remaining 5 percent stake in MCX even via block deal.

Also read:  MCX attains highest market share since Oct 2013

Kotak Mahindra stock price

On August 18, 2014, Kotak Mahindra Bank closed at Rs 968.00, up Rs 15.20, or 1.60 percent. The 52-week high of the share was Rs 979.35 and the 52-week low was Rs 588.00.

The company's trailing 12-month (TTM) EPS was at Rs 19.84 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 48.79. The latest book value of the company is Rs 159.25 per share. At current value, the price-to-book value of the company is 6.08.

08.11 | 0 komentar | Read More

Sun Pharma unit recalls mutiple lots of capsules from US

The recalled drug bottles were distributed by Caraco Pharmaceutical Laboratories, Ltd in the US while manufactured in India by Sun Pharmaceutical Industries Ltd.

Caraco Pharmaceutical Laboratories, a unit of Sun Pharma , has initiated a recall of multiple lots of Cephalexin capsules from the US market.

According to a notification by the USFDA, the recall of the 3,40,553 units of 500 mg and 1,13,677 units of 250 mg bottles is voluntarily initiated by the company through a letter to the regulator in June under 'Class-II' classification.

Cephalexin is an antibiotic that belongs to the family of medications known as cephalosporins. It is used to treat certain types of bacterial infections.

"CGMP Deviations: These products are being recalled because they were manufactured with active pharmaceutical ingredients (APIs) that were not manufactured with good manufacturing practices," USFDA's website said citing the reason for recall.

When contacted, a Sun Pharma spokesperson offered no comments.

The recalled drug bottles were distributed by Caraco Pharmaceutical Laboratories, Ltd in the US while manufactured in India by Sun Pharmaceutical Industries Ltd.

According to American health regulator USFDA, Class II recall is a situation in which use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.

Recently Caraco Pharmaceutical had said that it initiated a recall of some lots of Venlafaxine Hydrochloride extended-release tablets from the US market for not meeting the drug release dissolution specifications under 'Class-II' classification.

Meanwhile, in another notification FDA said  Wockhardt USA has initiated a recall of 840 bottles of Bupropion hydrochloride extended-release tablets USP (SR), 100 mg, (500-count bottle) from USA market. The reason for recall: "Out of specification levels of the impurity m-chlorobenzoic acid were observed'.

Bupropion hydrochloride extended-release tablets (SR) are indicated for the treatment of major depressive disorder.

Sun Pharma stock price

On August 11, 2014, Sun Pharmaceutical Industries closed at Rs 763.35, up Rs 4.05, or 0.53 percent. The 52-week high of the share was Rs 799.45 and the 52-week low was Rs 475.60.

The company's trailing 12-month (TTM) EPS was at Rs 1.46 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 522.84. The latest book value of the company is Rs 41.64 per share. At current value, the price-to-book value of the company is 18.33.

08.11 | 0 komentar | Read More

What's riding on Tata Zest?

Tata Motors finally launched the much awaited Zest this week. The compact sedan is the company's first new passenger vehicle in four years and also the first to be launched under its new strategy to turnaround the company's weak domestic business. Animesh Das finds out if the Zest will be a game changer for Tata Motors.

Tata Motors  finally launched the much awaited Zest this week. The compact sedan is the company's first new passenger vehicle in four years and also the first to be launched under its new strategy to turnaround the company's weak domestic business. Animesh Das finds out if the Zest will be a game changer for Tata Motors.

Tata Motors stock price

On August 11, 2014, Tata Motors closed at Rs 447.40, up Rs 14.40, or 3.33 percent. The 52-week high of the share was Rs 488.05 and the 52-week low was Rs 276.15.

The company's trailing 12-month (TTM) EPS was at Rs 0.08 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 5592.5. The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company is 7.51.

08.11 | 0 komentar | Read More

What's riding on Tata Zest?

Tata Motors finally launched the much awaited Zest this week. The compact sedan is the company's first new passenger vehicle in four years and also the first to be launched under its new strategy to turnaround the company's weak domestic business. Animesh Das finds out if the Zest will be a game changer for Tata Motors.

Tata Motors  finally launched the much awaited Zest this week. The compact sedan is the company's first new passenger vehicle in four years and also the first to be launched under its new strategy to turnaround the company's weak domestic business. Animesh Das finds out if the Zest will be a game changer for Tata Motors.

Tata Motors stock price

On August 11, 2014, Tata Motors closed at Rs 447.40, up Rs 14.40, or 3.33 percent. The 52-week high of the share was Rs 488.05 and the 52-week low was Rs 276.15.

The company's trailing 12-month (TTM) EPS was at Rs 0.08 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 5592.5. The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company is 7.51.

08.11 | 0 komentar | Read More

Sun Pharma unit recalls mutiple lots of capsules from US

The recalled drug bottles were distributed by Caraco Pharmaceutical Laboratories, Ltd in the US while manufactured in India by Sun Pharmaceutical Industries Ltd.

Caraco Pharmaceutical Laboratories, a unit of Sun Pharma , has initiated a recall of multiple lots of Cephalexin capsules from the US market.

According to a notification by the USFDA, the recall of the 3,40,553 units of 500 mg and 1,13,677 units of 250 mg bottles is voluntarily initiated by the company through a letter to the regulator in June under 'Class-II' classification.

Cephalexin is an antibiotic that belongs to the family of medications known as cephalosporins. It is used to treat certain types of bacterial infections.

"CGMP Deviations: These products are being recalled because they were manufactured with active pharmaceutical ingredients (APIs) that were not manufactured with good manufacturing practices," USFDA's website said citing the reason for recall.

When contacted, a Sun Pharma spokesperson offered no comments.

The recalled drug bottles were distributed by Caraco Pharmaceutical Laboratories, Ltd in the US while manufactured in India by Sun Pharmaceutical Industries Ltd.

According to American health regulator USFDA, Class II recall is a situation in which use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.

Recently Caraco Pharmaceutical had said that it initiated a recall of some lots of Venlafaxine Hydrochloride extended-release tablets from the US market for not meeting the drug release dissolution specifications under 'Class-II' classification.

Meanwhile, in another notification FDA said  Wockhardt USA has initiated a recall of 840 bottles of Bupropion hydrochloride extended-release tablets USP (SR), 100 mg, (500-count bottle) from USA market. The reason for recall: "Out of specification levels of the impurity m-chlorobenzoic acid were observed'.

Bupropion hydrochloride extended-release tablets (SR) are indicated for the treatment of major depressive disorder.

Sun Pharma stock price

On August 11, 2014, Sun Pharmaceutical Industries closed at Rs 763.35, up Rs 4.05, or 0.53 percent. The 52-week high of the share was Rs 799.45 and the 52-week low was Rs 475.60.

The company's trailing 12-month (TTM) EPS was at Rs 1.46 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 522.84. The latest book value of the company is Rs 41.64 per share. At current value, the price-to-book value of the company is 18.33.

08.11 | 0 komentar | Read More

India fastest growing, most important market for us: Viber

Talmon Marco, chief executive officer, Viber, says the text messaging application already has 25 million users in India.

Text messaging application Viber is betting big on India. Speaking exclusively to CNBC-TV18, Talmon Marco, CEO Viber says that India will be crucial to their growth and Whatsapp is its key competitor here. 

Viber already has 25 million users in India and it is one of the only places country where the company has a local team for operations.

Talmon Marco, CEO, Viber, says, "Our core competition is really the other messaging applications. It varies by country. We do not see Skype as competition. Here in India our key competitor obviously is Whatsapp. In other markets it may be other players."

08.11 | 0 komentar | Read More

Mining to resume in Goa by year-end: Parrikar

Goa Chief Minister Manohar Parrikar today said that the mining industry will resume operations by this year end, thereby restarting the economic activity in the iron ore rich belts of the state.

Goa Chief Minister Manohar Parrikar today said that the mining industry will resume operations by this year end, thereby restarting the economic activity in the iron ore rich belts of the state.

"State government has already started the process to resume mining activity in the state. Mining has been an important issue before the government. It will start before this year end," Parrikar said addressing the gathering after hoisting national flag on 68th Independence Day.

He said that post the resumption of mining, economic activity in the iron ore rich belt will pick up thereby addressing the crucial issue of livelihood by the people dependent on mining industry.

The chief minister thanked people for electing BJP-led government at the Centre, which according to him, would now help in expediting the development of Goa.

"For last two years, the state government struggled for a fast paced development due to non-cooperative behaviour of Congress-led Central government," he added.

Parrikar said that the state government has already reached almost 75-80 per cent of the population through its social welfare schemes.

08.11 | 0 komentar | Read More

RBI curbs free usage of cross-bank ATMs

The Reserve Bank of India reduced free usage of other bank automated teller machines (ATMs) to three per month from five as the number of such machines has increased to 160,000 by March-end from 27,000 seven years earlier, it said on Thursday.

The Reserve Bank of India reduced free usage of other bank automated teller machines (ATMs) to three per month from five as the number of such machines has increased to 160,000 by March-end from 27,000 seven years earlier, it said on Thursday.

The reduction will, however, not be applicable to customers having basic or small savings bank accounts as well as for ATMs located outside Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.

The RBI also allowed banks to levy ATM charges beyond 5 transactions for the same bank's account holders.

08.11 | 0 komentar | Read More

India fastest growing, most important market for us: Viber

Talmon Marco, chief executive officer, Viber, says the text messaging application already has 25 million users in India.

Text messaging application Viber is betting big on India. Speaking exclusively to CNBC-TV18, Talmon Marco, CEO Viber says that India will be crucial to their growth and Whatsapp is its key competitor here. 

Viber already has 25 million users in India and it is one of the only places country where the company has a local team for operations.

Talmon Marco, CEO, Viber, says, "Our core competition is really the other messaging applications. It varies by country. We do not see Skype as competition. Here in India our key competitor obviously is Whatsapp. In other markets it may be other players."

08.11 | 0 komentar | Read More

Post Cooper, Apollo looking at organic growth route

Apollo Tyres  has obtained an enabling resolution to raise USD 200 million and will look to fuel its growth through the organic route, Neeraj Kanwar, vice chairman and managing director of the firm has said.

Also read: How the Apollo, Cooper Deal was botched

Apollo had made an ambitious USD 2.5 bid for US-based Cooper Tires -- something that did not play out – but in an interview with CNBC-TV18's Shereen Bhan, Kanwar said the company may dilute equity to fund its future growth.

Excerpts from the interview.

Q: One of the other concerns is the enabling resolution that you have already had cleared from your board to raise about USD 200 million either by way of debt or equity, do you really need to through with this at this point in time because you are generating enough cash?

A: We have taken an enabling resolution up to USD 200 million. So, we have an expansion programme of around Rs 1500 crore for the truck radial to remain as leaders in the truck market and this is a profitable business for us. So, we are generating double EBITDA margins through selling truck radials and through the Chennai facility. So, that is a positive for us.

We are also looking at restructuring our Kerala unit which are very old units running on old technology. So, we are going into off-highway tyres (OHT) which is industrial, OTR, floatation tyres, agri tyres, which will incur a capex of around Rs 500 crore.

Q: So, altogether about Rs 1,900-2,000 crore.

A: Yes. Rs 2000 crore and this is to be spent over the next three years. So, nothing here and now that we have taken an enabling resolution. This is something that will give us strength to go and do these capital expenditures.

Q: What would you prefer debt or equity because there are concerns on equity dilution?

A: As a promoter I can tell you we are looking at equity coming in.

Q: How much would that mean in terms of dilution?

A: We have not finalised the number right now, we are still studying the market. We are in no rush to go and pick up this USD 200 million.

Q: What would be the tentative timeline that you could look at for this fund raising?

A: We have a one-year window and that is what we are operating in.

Q: The markets are doing well at this point in time, I would imagine that you would want to go through with it sooner rather than later?

A: Not really because I see a huge rush in the market to go and pick up money and you have seen a lot of money has been raised in the past two months. So, I am in no rush. I need to see the right price. That is when Apollo will come out.

Q: You were hoping that Cooper would give you a big leg-up as far as the global tyre pecking order is concerned. That obviously did not go through, so how does that change your aspirations on the global map?

A: I am not in the race of getting up the pecking order.

Q: But you have said that several times over, I want to be in the top 10 [globally] by 2016.

A: I have gone away from that because I have learnt a lot.

Q: What is the target for you -- and I am not talking to you about a short term target, about the next 12 or 24 months because a lot of these things won't even kick-in by then – but is there a five-year target?

A: Right now there is no target in our minds right now because we are just putting these plans into place. Once these plans are totally ironed out then I can come out and say that this is my five-year target.

We are looking at a 2020 target which will be fueled by organic growth and obviously it might [also] be something inorganic we would look at.

Q: But the preferred option at this point in time is organic growth?

A: Yes, 100 percent.

Q: So by 2020 will you be in the top-10?

A: I hope so.

08.11 | 0 komentar | Read More

SC to examine issue of availability of medicines, vaccines

A bench comprising justices Dipak Misra and V Gopala Gowda sought a response from the Centre on a PIL that the national health policy introduced in 2002 for making use of generic drugs and vaccines, was not being implemented properly.

The Supreme Court today decided to examine the issue that the national health policy of the country was hit due to non-availability of cheaper medicines and vaccines of same generic nature.

A bench comprising justices Dipak Misra and V Gopala Gowda sought a response from the Centre on a PIL that the national health policy introduced in 2002 for making use of generic drugs and vaccines, was not being implemented properly.

The bench, which sought the Centre's response in four weeks and appointed senior advocate B H Mariapalle as an amicus curiae to assist the court in the matter, said it will not go into the market issue raised by the petitioner.

The bench clarified that it was intended to issue notice on the matter that despite "there being a policy for generic drugs and vaccines, it was not followed in proper perspective as a result of which cheaper medicines of same generic composition were not available".

The PIL filed by advocate Reepak Kansal submitted that despite the national health policy for the use of generic drugs and vaccines, which fundamentally is a policy for ensuring the health security of the country, it was not properly implemented.

"As a consequence, people below the poverty line or slightly above it do not get medicines
when needed," the bench noted this submission.

08.11 | 0 komentar | Read More

May upgrade Grosvenor House bid if pushed: Cyrus Poonawalla

Serum Institute is not for sale- that's the word from Cyrus Poonawalla, the chairman of the Poonawalla group.

In a free-wheeling conversation with CNBC-TV18's Shereen Bhan, Poonawalla says he hopes he will win the bid for the Sahara Group's Grosvenor House Hotel in London. But he is neither interested in acquiring any of the Sahara Group's US properties, nor in investing in any other properties outside Mumbai or Pune for the moment.

Poonawalla also came down hard on players in the Indian Pharma sector who have fallen foul of regulators like the USFDA. He says these instances hurt the image of the sector on a global scale and is not good for business.

Below is the verbatim transcript of Cyrus Poonawalla's interview with CNBC-TV18's Shereen Bhan.

Q: Any comments on your bid for Grosvenor House?

A: We are in touch with Subrata's son Sushanto and obviously he is playing his cards close to his chest and I don't blame him. He is in serious problems and he must be wanting to take a call on how to go about it. As I see it he would probably give first preference to all the three properties being sold in one shot because that is the pressure that has been brought on him by Bank of China, that they mortgage the three properties so that the pledge could be cleared and so on.

Q: You are not interested in any of the other properties? You are only interested in the Grosvenor House Hotel in London?

A: That's right, no interest at all for the US properties and that is where the decision he will have to make.

Q: Do you feel that you are at a disadvantage right at the start?

A: Yes, definitely disadvantage in the sense that he will have to have three or two buyers that could help him also because he could get individually more money than somebody wanting to make a packet. Really we took more interest in it thought it is not really our core business, because we felt that being Indians we understood the situation of how to deal with the Reserve Bank, Securities and Exchange Board of India (Sebi) and all that which a foreign buyer may get dissuaded. So I don't know really how it is going.

Q: But how serious are you about this bid because I understand that you made your first offer in the month of April, then you revised the offer upwards and that is on account of valuation or to align your valuation to the valuation that has been arrived at by the Bank of China, how serious are you about this. If you needed to make an even better offer would you consider that?

A: Well we made our first offer on May 19, not April and we are very serious because it is a very exciting trophy property and it has got huge potential because there is scope in making better utilisation and upgrading it will have to spend money on it. To your question; first we talked about Rs 475 crore and then it went up to Rs 550 crore which is a very fair value. Actually it is a negotiation so I shouldn't say but if it came to a push maybe we would extend ourselves having come so far.

Q: How much would you think you have the appetite to extend yourself?

A: I don't want to say anything at the moment because I have been warned not to say. But there could be even others who may want to join us if we have to stretch ourselves but unless we get a complete, clear, this is it take it or leave it, then only we want to apply mind. There is no point in applying our mind now and coming to various conclusions and unless he says, okay I want to go with you not with the others and this is what I want.

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Govt corporates must complement each other: Ratan Tata

Ratan Tata, Chairman-Emeritus, Tata Sons Ltd was today conferred the 18th MMA Amalgamations Business Leadership Award  in recognition of his ability to foresee economic trends, manage change, take bold initiatives, sustain values and make an outstanding contribution to business, industry and society.

Speaking at the event, Ratan Tata said both the government and corporations should complement each other in moving the country ahead.

"Government and corporations have a combined task in moving the country ahead – creating a nation that offers equality and opportunity for all and stands out as a nation among democracies where good survives and evil is controlled. Government has the role of improving infrastructure and creating an environment of safety and opportunity based on meritocracy. Industry has to be entrepreneurial and it is this spirit that drives the country", he added

Calling for better collaborations and trust among corporates, Ratan Tata said, "Indian businesses seems to thrive, unlike businesses elsewhere. In the years I have been in business, it has been extremely difficult to get 20 business leaders in a room, to move away from talking about their own companies to taking a position on India as a whole and what they could do, or what they could provide to that new India."

Ratan Tata further said growth should be the by-word for India of tomorrow and that nothing in India limits the corporates from thinking on a global scale like its counterparts in China.

"India should not be fearful of Chinese goods. India needs to confront and compete with them. The government should create a competitive environment and not handicap industry through cesses and taxes", he added

Ratan Tata agreed that there are disparities between big and small companies due to policy."Government needs to remove it and make it equal. That is what has killed the textile industry and many other industries," he added

Ratan Tata has a vision for India in the next 15 years. He said, "In next 15 years I see an India where everyone has equal opportunity, where government and corporates work together to achieve growth and prosperity and I'd like to see an India where people get jobs based on merits. I believe our country is a tremendous country with great potential."

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HUL splits home, personal care; appoints new heads

Samir Singh has been appointed as Executive Director – Personal Care, while Priya Nair will become Executive Director – Home Care.

Moneycontrol Bureau

FMCG major Hindustan Unilever Limited  (HUL) Monday announced key changes in the management committee of the company. Subject to Unilever Indonesia's external board approval, Hemant Bakshi, currently Executive Director – Home and Personal Care, has been appointed as Executive Vice President (EVP) of Unilever Indonesia.

The Home and Personal Care (HPC) business will now be organised into Home Care and Personal Care Businesses in India.

Samir Singh, currently Global Brand Vice President Lifebuoy and Vice President - Personal Care Lead, South Asia Cluster, Unilever, has been appointed as Executive Director – Personal Care, HUL and Priya Nair, currently Vice President - Laundry, HUL, will become Executive Director – Home Care. Both Priya and Samir will be part of the management committee of HUL and their appointments are effective October 1, 2014.

Sanjiv Mehta, CEO & Managing Director, HUL, said: "We have reorganised the Home and Personal Care business into two separate businesses to ensure focus on the growth drivers for each of these businesses. I am pleased to welcome Priya and Samir to their new roles… and would like to congratulate Hemant on his move to Unilever Indonesia."

HUL stock price

On August 11, 2014, Hindustan Unilever closed at Rs 696.20, down Rs 5.75, or 0.82 percent. The 52-week high of the share was Rs 730.75 and the 52-week low was Rs 536.00.

The company's trailing 12-month (TTM) EPS was at Rs 18.05 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 38.57. The latest book value of the company is Rs 15.15 per share. At current value, the price-to-book value of the company is 45.95.

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Will re-establish Jet Airways as master brand: Naresh Goyal

In the first quarter, the airline has posted a net loss of Rs 217 crore- this is lower than the Rs 355 crore loss recorded a year ago.

Pilots at  Jet Airways may have reportedly threatened to go on strike unless the airline clears salary arrears to the tune of Rs 100 crore by August 20. But the airline is not worried. It says it had created a provisioning for these arrears in March 2013 itself. But Jet is seeing some relief when it comes to profitability.

In the first quarter, the airline has posted a net loss of Rs 217 crore - this is lower than the Rs 355 crore loss recorded a year ago.

The company sees this as a sign that its 3-year turnaround strategy is bearing fruit and is targeting a net profit by 2017 on the back of a new 'single-brand strategy'.

Naresh goyal, chairman, jet airways said, "Today, at our board meeting we have received approval for our next critical step, to re-establish Jet Airways as a single master brand. This would mean harnessing our product proud heritage and original values in one consistent predictable and clearly recognized full service brand and also promise you Jet Airways used to be known as a Swiss clock operation, you cannot adjust your clock when you go. This will happen soon."
 

Jet Airways stock price

On August 11, 2014, Jet Airways closed at Rs 246.25, up Rs 1.90, or 0.78 percent. The 52-week high of the share was Rs 414.70 and the 52-week low was Rs 210.25.

The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -1.26.

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PM to lay foundation for Rs 4,000 cr SEZ at JNPT

Prime Minister Narendra Modi will lay the foundation stone for the Rs 4,000-crore port-based multi-product special economic zone at Jawaharlal Nehru Port Trust at Sheva, Navi Mumbai, on August 16.

"The proposed industrial infrastructure in 277 hectares with a total public and private investment of Rs 4,000 crore is planned as a self-sustainable integrated development project having a potential of generating 1.5 lakh direct and indirect jobs," an official statement said today.

The ambitious SEZ, to be developed through JNPT-SPV (Special Purpose Vehicle) under the engineering, procurement and construction (EPC) mode, will be completed in three years.

With focus on the collaborating upcoming sectors of India, the SEZ will develop a free trade warehousing zone, engineering goods sector, electronics and hardware sectors, non-conventional energy sector, multi services (IT and healthcare) sectors and apparel and textiles sectors, the statement said.

Modi will also lay the foundation stone for a Port Connectivity Highway Project at the JNPT and also allot land to JNPT project affected persons (PAPs) under the 12.5 per cent scheme.

The statement said the projects have been expedited by Minister of Road Transport, Highways & Shipping & Rural Development, Nitin Gadkari in the last two months.

The port connectivity highway project with a cost is Rs 1,926.57 crore will be completed by December, 2017.

The Ministry of Shipping has decided to execute this project on EPC mode through SPV. The project has been undertaken under the National Highway Development & Port Connectivity Programme of the Union government.

The statement said due to rapid development in the area on account of development of JN Port, JNPT-SEZ, and the proposed international airport, etc, it was felt necessary to augment the carrying capacity of the existing road network to 6/8 lane configuration by providing improved facilities comprising flyovers, railway over bridges and interchanges for uninterrupted flow of traffic on the road network connecting the Port and the National Highways.

Accordingly, it has been proposed to develop the road network to 6/8 lane configuration with service roads. The NH-4B, Amra Marg & SH-54 was developed to a four-lane facility by the National Highways Authority of India (NHAI) through the Special Purpose Vehicle (SPV) comprising of NHAI, JNPT & CIDCO. .

 Allotment of land under 12.5 per cent scheme to Project Affected Persons (PAPs) of JNPT has been a long-pending issue.

Jawaharlal Nehru Port Trust (formerly NhavaSheva Port Trust) was commissioned on May 26, 1989 and 1172 hectares were acquired through Government of Maharashtra from 12 villages for port construction and on resistance it was promised that 12.5 per cent of the developed land would be given to them.

This has resulted in a number of agitations in the past.

Resolution of the dispute was essential for smooth operation and future development of JNPT.

The land owners, whose lands were acquired for JNPT, agitated seeking allotment of land under the 12.5 per cent scheme as decided by the Government of Maharashtra in respect of land acquired by CIDCO for the Navi Mumbai project.

A decision was taken to grant the benefit of 12.5 per cent land allotment scheme on humanitarian grounds to the JNPT PAPs, though legally as per the Supreme Court order the Port was not liable to implement 12.5 per cent scheme, the statement said.

Based on the decisions taken, a proposal for Cabinet approval was moved by the Ministry of Shipping to transfer 12.5 per cent of the 1172 hectares of land to Government of Maharashtra to distribute to the JNPT PAPs.

The statement said though 12.5 per cent of 1172 hectares worked out to 146.5 hectares, 35.5 hectares have already been given to 4 villages under the Gaothan Extension Scheme of Maharashtra Government by JNPT.

"Hence, it was proposed to transfer the remaining 111 hectares (146.5 hectares minus 35.5 hectares) which was in accordance with the decisions taken at the meeting on March 22, 2011," it said.

Earlier the Cabinet had approved the transfer of 111 hectares of JNPT land to Government of Maharashtra for allotment to PAPs in line with the Government of Maharashtra?s scheme for PAPs of Navi Mumbai of CIDCO.

The Cabinet also allowed JNPT to provide CIDCO the cost of development of minimum amenities (to be finalised in consultation with CIDCO/Government of Maharashtra).

Accordingly, Ministry of Shipping accorded approval to the proposal of JNPT to provide Rs 212.34 crores.

The statement said JNPT based on Cabinet decision had initiated action for allotment of 111 hectares of land but the Chief Minister of Maharashtra had requested for 160 hectares and Shipping Ministry has recently "forwarded a proposal for seeking approval of the Cabinet for sanctioning additional land of 47.20 hectares ...."

The statement said the issue warrants a "permanent solution so that the functioning of the Port, which handles about half of India?s international trade, goes on smoothly and unhindered."

Also Read: FTP to focus on mfg led export growth, SEZs: Nirmala

Maharashtra Governor K Sankaranarayanan, state Chief Minister Prithviraj Chauhan, Union Minister of Heavy Industries & Public Enterprises Anant Geete among others are are expected to attend the function.

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Puravankara to invest Rs 1000 cr on construction in FY'15

Realty firm Puravankara Projects will invest about Rs 1,000 crore this fiscal on construction of its housing projects and targets to cut external net debt by about Rs 250 crore by March next year on improved sales.

Realty firm  Puravankara Projects will invest about Rs 1,000 crore this fiscal on construction of its housing projects and targets to cut external net debt by about Rs 250 crore by March next year on improved sales.

The Bangalore-based company is also targeting to launch 18 million sq ft of new projects this fiscal, of which 10 million sq ft will be under its affordable housing brand 'Provident'.

"We are focusing on the execution of our housing projects. We will invest about Rs 1,000 crore in the current fiscal on construction as against Rs 748 crore last year," Puravankara CEO Jackbastian K Nazareth told PTI.

The company has already invested Rs 235 crore in the first quarter of this fiscal, he added.

Stating that Puravankara has embarked on a "growth" path, Nazareth said the company would launch several projects this fiscal comprising 18 million sq ft of area.

Asked about investment on development of new projects, he said the project cost could be known closer to the launch.

On debt, the CEO said the net external debt stood at Rs 1,266 crore at the end of the June quarter and the same would be reduced to about Rs 1,000 crore by March next year.

As on June 30, Puravankara's net debt stood at Rs 1,487 crore, which included Rs 221 crore funded by the promoters.

Higher investment on construction and reduction in debt would be done through sales realisation, Nazareth said, adding that the unrecognised revenue in the books of account stands at Rs 1,355 crore.

During April-June quarter, Puravankara's sales booking rose by 36 per cent to Rs 350 crore.

Puravankara Projects reported 15 per cent fall in consolidated net profit at Rs 58.25 crore for the quarter ended June on higher expenses.

It's net profit stood at Rs 68.17 crore in the year-ago period.

Also Read: Things to remember before investing in a luxury apartment

However, the company's income from operations rose by 25 per cent to Rs 461.62 crore in the first quarter of this fiscal against Rs 368.97 crore in the corresponding period of last fiscal.

Puravankara stock price

On August 08, 2014, Puravankara Projects closed at Rs 82.10, down Rs 14.7, or 15.19 percent. The 52-week high of the share was Rs 133.90 and the 52-week low was Rs 50.00.

The company's trailing 12-month (TTM) EPS was at Rs 4.85 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 16.93. The latest book value of the company is Rs 71.77 per share. At current value, the price-to-book value of the company is 1.14.

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Tata Steel shuts Odisha plant due to raw material crunch

The suspension of operations at Sukinda and Bamnipal would mean more than 6,000 job cuts, the company said.

Tata Steel  Ltd has shut down one of its ferro alloys plants in Odisha due to a raw material shortage linked to the suspension of a mining license, the company said in a statement late on Friday.

Tata Steel sourced ore for the 50,000 tonne-per-year Bamnipal plant from its captive chromite mine in Sukinda, operations of which were suspended in May.

The plant was run with available inventory before being shut on Aug. 4. The suspension of operations at Sukinda and Bamnipal would mean more than 6,000 job cuts, the company said.

Also read:  SBI wants external agency to run Bhushan Steel

Tata Steel stock price

On August 08, 2014, Tata Steel closed at Rs 537.55, down Rs 17.9, or 3.22 percent. The 52-week high of the share was Rs 578.60 and the 52-week low was Rs 220.00.

The company's trailing 12-month (TTM) EPS was at Rs 66.02 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 8.14. The latest book value of the company is Rs 629.60 per share. At current value, the price-to-book value of the company is 0.85.

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CBI investigates IDBI Bank loan to Kingfisher Airlines

The CBI has registered a preliminary enquiry registered against IDBI Bank for sanctioning a loan to debt-laden Kingfisher Airlines. The investigating agency is enquiring as to how the bank approved a Rs 950 crore loan to Kingfisher Airlines considering the company's negative net worth and credit rating.

Moneycontrol Bureau

After its recent crackdown on Syndicate Bank  - where the Central Bureau of Investigation, or CBI, arrested its chairman and managing director SK Jain in an alleged bribery case - the CBI has now shifted focus to  IDBI Bank and Kingfisher Airlines .

The CBI has registered a preliminary enquiry against IDBI Bank for sanctioning a loan to debt-laden Kingfisher Airlines. The investigating agency is enquiring as to how the bank approved a Rs 950 crore loan to Kingfisher Airlines considering the company's negative net worth and credit rating.

Also Read: Were rumours of SpiceJet's demise greatly exaggerated?

CBI sources say: "IDBI Bank did not need the exposure when other bank loans were stressed." Sources also add it was the first exposure to the bank.

State Bank of India  and several other banks have exposure totaling Rs 6,500 crore in Kingfisher Airlines. The loans granted by SBI to KFA is also under the scanner.

Kingfisher Airlines stopped operations from October 1, 2012.

Syndicate Bank stock price

On July 28, 2014, Syndicate Bank closed at Rs 146.35, up Rs 0.70, or 0.48 percent. The 52-week high of the share was Rs 179.10 and the 52-week low was Rs 61.05.

The company's trailing 12-month (TTM) EPS was at Rs 27.93 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 5.24. The latest book value of the company is Rs 189.63 per share. At current value, the price-to-book value of the company is 0.77.

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New pricing order caught us by surprise: Pfizer India MD

The National Pharmaceutical Pricing Authority on July 10 notified price control on 50 new drugs and the order will reduce the drug prices by 10-35 percent.

The government's decision to control therapeutic drug prices has unsettled many in the industry. Latest to voice his concern is Aijaz Tobaccowala, managing director, Pfizer India .

Tobaccowala said that the new pricing order had caught the company completely by surprise, and will wait for more clarity before making on-ground changes.

Also read: NPPA's unilateral stand-off unhealthy for sector: Biocon

Speaking to CNBC-TV18's Archana Shukla Tobaccowala said, "one of the things we always looked for was a certain amount of consultation with the industry before decisions are taken. All I can look forward to is rounds of consultation with the industry before any additional decisions are taken."

The National Pharmaceutical Pricing Authority on July 10 notified price control on 50 new drugs and the order will reduce the drug prices by 10-35 percent.

Pfizer stock price

On August 08, 2014, Pfizer closed at Rs 1330.30, down Rs 5.35, or 0.4 percent. The 52-week high of the share was Rs 1779.00 and the 52-week low was Rs 1004.10.

The company's trailing 12-month (TTM) EPS was at Rs 73.51 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 18.1. The latest book value of the company is Rs 641.82 per share. At current value, the price-to-book value of the company is 2.07.

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India still promising, will cross USD 10bn by 2015: Samsung

Samsung's president and CEO for south west Asia BD Park spoke to CNBC-TV18 and he has big plans for India. He says the company is targeting over USD 10 billion in sales by 2015. Also, he rubbished reports suggesting that Micromax had snatched the number one spot from Samsung in the country.

Below is verbatim transcript of the interview:

Q: How important is Indian market for you?

A: Indian market has always been one of the strategic markets for Samsung because India first of all has huge number of population and still the penetration rate of our major products is still pretty low.

Q: How significantly do you see the size and scale of your operations increasing in India given the kind of potential and given the opportunity that you envisage across various businesses in terms of incremental investments, what can we expect from Samsung by way of incremental investments?

A: So far we have invested more than USD 700 million in India. I think we will keep investing in India in terms of manufacturing and in terms of R&D.

As of now, we are manufacturing most of the products that we sell here in India. At the same time we are also exporting to neighbouring countries and in some cases to Africa and also to the Middle East. So, we think that India should be a kind of manufacturing hub for Samsung for the neighbouring countries.

Q: You talked about the opportunities in India, let me talk specifically about the telecom market because that is the story that everybody is talking about and how Micromax has been able to dislodge Samsung from the number one position. How concerned are you by that and do you face a brand challenge at this point in time similar to what Nokia was facing a couple of years ago not just in India but globally as well because at the bottom end you have got the Micromax and others coming in and taking up market share. At the high end it continues to be the likes of Apple that are dominating the premium side of the market and you find yourself now somewhere stuck in the middle?

A: We need to validate the number quoted by them. I will tell you very clearly we are absolute number one and the gap between Samsung and the second place is quite big.

Q: How big is quite big?

A: I think it is more than double.

Q: So you are saying the difference between you and Micromax, if Micromax is the second player as per your data, is quite significant and you don't buy these numbers that are doing the rounds at this point in time?

A: No, we don't.

Q: Is there room now for aggressive price cuts, to take on the Micromax' and Gionee' because you are really seeing that competitive pressure coming in from the Chinese vendors, Chinese manufacturers. Is there room to cut further to take on competition at the lower end?

A: Yes, if needed we will bring that kind of low cost product but not because we want to fight against those kind of low cost manufacturers but we are setting our prices based on the demand of the consumers and the value of the product and those kind of things. That is why we always think that even though we bring some kind of low cost mobile phone but it should add more value to the consumers and at the same time ride up the excitement.

Q: What is the strategy going to be, how would Samsung like to position itself in the Indian markets specifically?

A: Samsung is the leader. A leader cannot miss any one segment. So we will play from the bottom line to the top of the top – the premium segment and also we know very well that the brand that have been in the premium segment, will win the game eventually. That is why we will focus on the premium segment but it doesn't mean that we will ignore or we will disregard importance of emerging and growing such kind of entries in Smartphone segment. We will be the winner in all segments.

Q: Do you want to share your five year target, I am happy to take that onboard?

A: I didn't tell you about our current business volume value. I want to cross USD 10 billion.

Q: USD 10 billion, by when?

A: By 2015-end.

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Will not be complacent about competition: Samsung

Park welcomes the tough competition in India. According to him, good brands should come from Indian market too.

We are the leader in the market, we have to take care of the interest of all the stakeholders in the eco-system

BD Park

President & CEO (South West Asia)

Samsung

South Korean conglomerate Samsung is going through a tough phase, especially in the mobile handset market. It has been dislodged from the top spot in India by local mobile phone vendor Micromax . As Samsung recognises this challenge, the company's president and CEO for south west Asia BD Park says Samsung will not be complacent about competition.

Park welcomes the tough competition in India. According to him, good brands should come from Indian market too. However, Samsung will have to be more focused on its own job and so, whatever its competitors will do, the company will try to study what kind of products its end user consumers want and will try to meet those demands in its own way, he adds.

In an exclusive conversation with CNBC-TV18, Park also spelt out his strategy to resolve the differences between online and offline retailers.

Park believes Samsung and online retailers can co-exist along with traditional retailers.
"We are the leader in the market, we have to take care of the interest of all the stakeholders in the eco-system," he adds.

Meanwhile, Park expects a pickup in the manufacturing of colour television.

"The small sized panel TV demand is becoming huge especially in the rural market and up country market. So, I think the Indian government took the right decision to support penetration of the panel TV which will eventually benefit the manufacturer and will also help foster the Indian industry regarding that kind of TVs. So, it is a good initiative and every stakeholder will get benefit from that initiative," Park elaborates.

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