Trio eyes big biz in tech-support to SOHOs: Young Turks

In this age of hectic lifestyles, service-providers that can perform errands are making it big. CNBC-TV18's Young Turks introduces you to eTechies, the latest organisation to join the errand bandwagon.

Betting big on the USD 1-billion, highly disorganised tech support market in India, the trio of Siddharth Bhatia, Rohit Chaudhary and Samarth Goyal launched eTechies in 2010- an online and doorstep repair-service provider which promises to sort out problems with laptops, PCs or tablets with an army of 200 certified technicians.

Below is an edited transcript of the show on CNBC-TV18.

The situation might sound familiar: You are working on your laptop when it suddenly crashes and you don't know what to do. Thanks to eTechies, within one to four hours of making a call, a certified technician will show up at your doorstep to deal with your tech blues.

The brains behind the business are Siddharth Bhatia, Samarth Goyal and Rohit Chaudhary who were former colleagues at Quatrro, the firm founded by serial entrepreneur Raman Roy. The trio decided to use their experience providing tech support at Quatrro to start their entrepreneurial journey.

With operations in six cities, eTechies today helps resolve over 20,000 queries a month. The first-mover advantage has certainly given them a strong start.

Bhatia: Our target audience is the huge consumer segment- a housewife, a child, a college student, a doctor or a lawyer using a laptop, desktop any computing device at home. Our second target audience is the small-office- home-offices (SOHOs) which are small chartered accountant or law firms with around 5-50 computing devices.

Targeting the post-warranty product market, eTechies wants to change the rules of tech support in India. The company has  created state-of-the-art service centers with machines imported from Korea. Servicing over 6,000 computing devices a month at service centers,  eTechies ensure that all products are quality tested before they are sent back to the customer.

Having already completed more than 50, 000 remote-support sessions eTechies today boasts of over 25,000 active users on its portal. With an initial investment of Rs 30 lakh, the venture is looking to break-even by next year.

Bhatia: We have offer two kinds of services. The first type is based on the incident. We come and fix the problem and once you are satisfied, we charge anything between Rs 1,300-2,000 depending on the problem. Charges can go as high as Rs 3,000 per incident and if it is a Mac. The second type of services on offer is the annual maintenance support contract which ranges from Rs 2,500-4,500 where an user can call us any number of times in a year to have problems resolved.

And clients like PR agency Value360 top the list of eTechies 200 corporate clients. With an initial funding from Google India's Rajan Anandan in 2010, eTechies closed its series (A) funding of USD 2 million within Inventus Capital Partners in 2011 to further its expansion.

Bhatia: By the end of next financial year, the company will offer services in around 23 cities. As far as the revenue is concerned, our target is to be at 25-30 times of current levels. We haven't broken even as of now and plan to break-even in six months to one year.

And to make a break, the trio now needs to focus on marketing the brand. With plans to spend almost 8 percent of the company's topline on marketing, the team is aggressively courting radio and digital advertising to register as the most preferred brand in the unorganised tech-support market.

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Focus on EMs, fibre network has made us leaders: TataComm

In this edition of CNBC-TV18's The Forbes India Show, meet Vinod Kumar, MD and group CEO of Tata Communications . Tata Communications is a relatively new name for a 130-year old company. In February 2008, Videsh Sanchar Nigam Limited (VSNL) was rechristened Tata Communications after the Tatas took control of VSNL in 2002 when the government divested stake in the company.

Join Vinod Kumar as he takes you on the journey of a monopolist, government-owned company that was operating largely with Indian customers transforming into a global company operating in a number of emerging markets.

Below is the edited transcript of the show on CNBC-TV18

Q: It is a little over 10 years since the government divested stake. How much of your current business is derived from businesses that were existing 10 years ago?

A: We are roughly USD 2.5-billion company last year heading towards USD 3 billion in revenues. If we just stayed doing what we did then, our business would look more like a USD 200-million business, because essentially at that time VSNL was the exclusive provider of international voice services into and out of India. That business obviously is still a part of what we do, but a very small part.

Q: How much of this current business has been derived from that, in whatever form? What did you have to do to reinvent yourself?

A: I think the biggest aspect that we leverage is the bilateral relationships with carriers around the world. VSNL essentially collected minutes from Bharat Sanchar Nigam Limited (BSNL) which was the domestic incumbent at that time and sole provider and handed off voice traffic to more than 120 carriers throughout the world.

We still leverage those relationships. Obviously that voice business has been the kernel around which we went and acquired other businesses and built our global voice business which is now truly multi-route and has made us the world's largest voice-provider.

Q: But that would have still been a USD 200-million business.

A: Yes.

Q: How did you transform it into USD 2.5-billion company?

A: The first thing we did then was to build our domestic infrastructure in 2002. VSNL essentially had satellite gateways that took traffic from BSNL and beamed them out globally. But we saw that the data era was coming and therefore we built a domestic network throughout India and then we extended that internationally using many submarine cable extensions to connect India to the rest of the world to combine our satellite capacity with our fiber-based capacity.

Then we acquired companies such as Tyco's cable assets and Teleglobe. These businesses then started increasing our capability, both moving from voice to data services and then eventually from data-services to managed services.

We also diversified our customer segments from pure carrier business to also serving enterprises. We went from being an India-specialist company to a global company. So I would say that while there is a key element of erstwhile VSNL that still exists within the business in some ways, it is also unrecognisable.

Q: Who is your competition within India and outside India?

A: The best way to describe Tata Communication is to look at us as a communication and collaboration solutions provider for large enterprises and for large carriers and telcos around the world. Within that there are many nuances, but in a nutshell that is what we do. I look at the world as three segments that we serve, one is we have the carrier community which is truly global and there we service everyone from AT&T, BT, SingTel and NTT.

Then we service the large global multinationals. So we offer large enterprises connectivity across borders as they expand into emerging markets and get more and more of their revenues from markets outside their home-base. We provide connectivity that keeps all their offices in their global enterprise together.

Q: So in a sense you are competing with some of your own customers?

A: Yes. Then in the Indian market where we provide medium-to-large business turnkey solutions that include voice and data connectivity and some mobile services through our sister company TTSL and there we compete with Airtel, Reliace, Sify, Tulip and others.

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SJVN forays into wind power

Buoyed by its success in hydro-power development, power major SJVN is venturing into wind power generation by setting up a 47.6 MW project. Peforming the bhoomi poojan for the project, SJVN Chairman and Managing Director R P Singh said the company's upcoming 47.6 MW project will have 56 turbine units of 850 KW each and spread in an area of 51.3 hectare, a company release said.

The project will have an annual energy generation of 85.65 MU at a Feed in Tariff of Rs 5.67 per kWh, he said adding that the project would also have a 132 kV Transmission Line from Akole 132 kV Grid Sub Station to 2 x 50 MVA, 33/132 kV Wind Farm Pooling Station connecting 33 kV Line for Inter connecting the Grid. A contract for setting up the wind power project at village Khirvire/Kombhalane, Ahmednagar in Maharashtra for a total capacity of 47.6 MW was awarded to Gamesa Wind Turbine Pvt Ltd, Chennai in October, 2012.

The project has a completion schedule of eight months, excluding a period of two months for stabilisation, he said. As per the execution schedule, the project will be commissioned during May/June, 2013, while grid stabilisation will be completed by August, 2013, he added. SJVN owns and operates India's largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh, while its 412 MW Rampur Hydro Electric Project was scheduled to be commissioned in 2013, the release added.

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Sanjiv Goenka appointed chairman of FSL

Sanjeev Goenka has been appointed chairman of BPO service provider Firstsource Solutions (FSL), which has been acquired by CESC Ltd through a wholly-owned subsidiary.

"On December 3, I was inducted as chairman of Firstsource Solutions," CESC Ltd vice-chairman Sanjeev Goenka told reporters. Sailesh Mehta had ceased to be the chairman of FSL but continued as an independent director. Shashwat Goenka has joined the FSL Board, along with CESC executive director Subrata Talukdar and Heigreve Khaitan.

"The directors who resigned from FSL Board on December 5 were Pravir Vohra, Mohit Bhandari and Ram Chary," he said. In October, the RP Sanjeev Goenka Group had announced it was venturing into the business process operations space with the acquisition of 34.5 percent stake in FSL. SpenLiq Pvt Ltd, a wholly-owned subsidiary of the Group's CESC Ltd, has entered into an agreement with FSL to subscribe to 34.5 per cent of FSL's expanded share capital. Goenka added that FSL has fully repaid its outstanding FCCB liability of USD 237 million on December 4 this year.

The repayment was funded by the company's cash resources, augmented with shareholders' money made available by the RP-Sanjiv Goenka Group, as also external borrowings. "We feel that this repayment is an important landmark for the company. We also feel, FSL has been a significant strategic acquisition for CESC. We have the faith to steer FSL to the next phase of growth and profitability," he said.

FSL has a network of 48 delivery centres spread globally across USA, UK, Australia, Ireland, Philippines, Sri Lanka and India and is provider of services for banking and financial sectors, telecommunication & media and the healthcare industry.

"I am bullish about FSL's contribution to the RP-Sanjiv Goenka Group, which currently has Rs 14,000 crore assets under its management, a combined revenue of Rs 10,000 crore and EBIDTA of Rs 1,450 crore." "The FSL acquisition boosts RP-Sanjiv Goenka Group's revenues by Rs 2250 crore, adds significantly to the Group's profits and trebles employee strength from 16000 to 48000," he said.

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India for fulfilment of legal process relating to GMR case

In a clear message to Maldives, India said it would like to see "fulfilment" of all legal process and adherence to all relevant contracts and agreements regarding the compensation in the USD 500 million GMR Male airport project. Reacting to the verdict of a Singapore court which ruled that the Maldives government can take back the Male Airport from the private firm, official spokesperson in the Ministry of External Affairs Syed Akbaruddin said the ministry as well as the Indian High Commission in Male is studying the judgement and their lawyers need to understand it.

Also Read:

Hard effects if no legal route followed: India to Maldives
Ending airport contract will hit Maldivians hard: GMR

Pointing out that there are two issues in the case--one sovereign right of a nation and other legality of the agreement, which was linked to compensation to GMR and its associates in Malaysia, he said the latter part has not been "affected or responded" in today's judgement. "These issues are not affected with judgement or not responded to...Fulfilment of all legal process and requirement is what we want to see in this case and we hope that all relevant contracts and agreements would be adhered to and all legal process are carried through," he said.

The Singapore Court, which had earlier stayed the termination of the contract by the Maldives, today said the governmentthere has the authority to take back the airport. India has also conveyed to the Maldives that it expected no arbitrary and coercive action should be taken pending the outcome of legal proceedings on the GMR contract issue, warning that recourse to any such action would have adverse consequences for bilateral relations. On appointing of a new envoy to Maldives replacing incumbent D M Mulay, he said Mulay has completed more than three years and seven months and his appointment to New York is routine.

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CCEA defers decision on new urea investment policy

The Cabinet Committee on Economic Affairs (CCEA) today deferred a decision on new urea investment policy as Fertiliser Minister M K Azhagiri was not present in the meeting.

In a separate meeting, the Cabinet approved Food Ministry's proposal to extend imposition of stockholding limits on rice/paddy by traders for one year till November, 2013, sources said.The step was taken with a view to preventing hoarding of food grains.

The stockholding limit on these two items had expired in November this year. The extension has been given to seven states, including Delhi, Maharashtra, Andhra Pradesh and Tamil Nadu, they added.

According to sources, "The urea investment policy was not taken up as the concerned minister was absent". The new urea investment policy, which is likely to incentivise fertiliser firms for setting up new plants and expanding existing capacity, is likely to attract a fresh investment of about Rs 35,000 crore to increase domestic production by 8 million tonnes.

The Fertiliser Ministry has drafted a new policy as the 2008 urea investment policy failed to attract fresh investment in the sector. India faces shortage of 10 million tonnes of urea, which is met through imports.

In the proposed new investment policy, the Ministry has recommended giving 12-20 per cent post-tax return on fresh capital infused by the manufacturers for setting up of new plants, expansion and revamp of existing ones.

At present, the government controls the urea sector and has fixed maximum retail price (MRP) at Rs 5,360 per tonne. The difference between the MRP and cost of production is given as subsidy to manufacturers.

The country produces 22 million tonnes of urea, against the requirement of 32 million tonnes.

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Ready to pay as per Supreme Court directives: Sahara

Hours after the Supreme Court directed Sahara Group to make payment of Rs 24,000 crore to its investors within nine weeks , the company said it was ready to pay as per the directives.

In a statement issued by its lawyer today, Sahara said it had offered to repay the holders of Optionally Fully Convertible Debentures (OFCDs). Sahara claimed that it had kept two pay orders ready.

"As per the certificate of the statutory auditor, the outstanding liability of both the companies towards the outstanding OFCDs is Rs 2,620 crore only as on Nov 30, 2012.

"On November 30, 2012, Sahara offered pay orders of Rs 2,620 crore and also a buffer amount of Rs 2,500 crore subject to certain verification of some pending/continuing at company's end," Sahara's counsel Satish Kishanchandani said in the statement.

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No price correction likely in Mumbai realty market: HDFC

Mortgage major HDFC today said a correction is unlikely in the runaway property prices in the metropolis, where the demand continues to be robust.

Also read: FDI in Retail: Its impact on the retail & realty sector

"I can't see any big drop in prices. The inherent demand for real estate in Mumbai is always going to remain strong," HDFC vice-chairman and chief executive Keki Mistry told reporters on the sidelines of an industry conference organised by PwC here.

The only factors which can potentially bring down theprices are a dramatic improvement in building by-laws, which will allow more high rises and increase the supply, and a high incidence of job losses, he said. "Unless you see something like that happening or people are losing jobs and the confidence level is low, I do not see any drop in prices (in Mumbai)."

Asked about reports of excess supply of housing stocks which has increased inventory pile-up with developers, Mistry said, "I don't think there is excess supply. I think there is more demand than can be met." He said the loan demand remains very robust for the lender, which is second only to State Bank of India in the home loan portfolio.

Asked about a possible rate cut, given the reducing rates environment, Mistry said HDFC will cut rates only if its cost of funds comes down which would be possible only in the scenario of a rate reduction by the RBI. Mistry refrained from stating his expectations from the mid-quarter credit policy announcement scheduled for December 18, but expected the central bank to cut its key lending rate by 0.50 per cent by March.

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Securities Appellate Tribunal facing manpower crisis

It is a three member quasi-judicial body that has been working without a judicial officer for over a year now. Now, the two remaining members of the Securities Appellate Tribunal are on the way out. CNBC-TV18's Ashmit Kumar reports on the serious manpower crisis the SAT is facing at the highest level.

The Finance Ministry will have to work quickly, if the Securities Appellate Tribunal is to be kept alive. The three member quasi-judicial body is, by law, composed of a presiding officer and two other members, However, with the retirement of Justice Sodhi in November 2011, the Tribunal lost a Judicial Presiding Officer. Since then, the Tribunal has heard over 200 cases, including some high profile ones like the dispute between Sahara and SEBI, with member PK Malhotra holding officiating charge.
 
However, the lack of a Judicial Presiding Officer has cast a cloud over the validity of SAT judgments - the subject matter of an already pending public interest litigation.

Now, Malhotra has been appointed secretary of Legislative Department at the Law Ministry and to make matters worse, SSN Moorthy, the second tribunal member, will retire on December 27. This means there will be no one left to hear cases.

PR Ramesh, senior consultant, Eco Laws Practice says, "Now there are two members, and if one is leaving, under the rules, every order has to be signed by a PO and a member. Without two members, SAT cannot function. Procedurally every order has to be passed by the PO and the member. A one member tribunal will not be able to pass any orders."

The situation has capital market participants worried, but experts say aggrieved parties could seek recourse at the High Court.

Sandeep Parekh, founder, Finsec Law Advisors opines, "One could go to the HC and file a writ against SEBI orders. Since there is no statutory appeal, the HC would consider it for the simple reason that there is a vacuum at SAT. Therefore, there is no alternate or efficacious remedy available to the litigants."

New members will not solve the problem entirely. Experts say it could take months for the new officers to come to terms with the complexity of crime in the capital markets.

Parekh adds, "These posts are filled by people who don't have much experience. These gentlemen learn on the job how the markets work, how the crooks work. There is some learning that takes place over the first six to eight months, an upward learning curve even for the litigant because there is a person adjudication over the matter who doesn't quite understand the situation. It is clearly not the happiest situation with all three members being new to the tribunal."

New members will have to be appointed within a month, if the Tribunal is to keep functioning. Also, SAT already has a backlog of 50-60 cases. With the new consent process framework, SAT will have to hear more cases of insider trading and front-running, meaning the backlog could mount rapidly.

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GMR-Male rift: MEA says arbitrary steps shouldn't be taken

In a stern message to Maldives, India said it expected no arbitrary and coercive action should be taken pending the outcome of legal proceedings on the GMR contract issue and warned that recourse to any such action would have adverse consequences for bilateral relations. In response to a question on the GMR issue, the official Spokesperson of the Ministry of External Affairs also said "we are concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments".

Also Read:

Industry wants govt to use diplomatic channel in GMR case
Will go ahead with takeover of airport project: Maldives

He asked Maldives to ensure that the rule of law "is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely." Referring to the telephonic conversation Maldivian Foreign Minister Abdul Samad Abdullah had with External Affairs Minister Salman Khurshid, the official Spokesperson said the Maldivian minister had mentioned that his government would not allow relations between his country and India to be undermined and there was consensus on this issue.

During the conversation, Khurshid reminded the Foreign Minister of Maldives of his earlier discussions noting that the legal processes involved in the GMR case should be permitted to take their own course based on the contractual obligations of the parties involved and the Maldivian government should not allow the situation to go out of hand. Abdullah called up Khurshid in a bid to mollify an upset India following the Maldivian government's decision to terminate GMR's 500-million dollar airport project in Male.

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