Tata-owned Jaguar Land Rover posts record car sales

India has emerged as one of the fastest growing markets for Tata Motors -owned Jaguar Land Rover (JLR), which posted record sales for 2013 today as the iconic British luxury brands sold 425,000 cars worldwide.

The record sales of over 400,000 cars marked the UK-based car maker's strongest-ever full year global sales performance while the US, Germany and India are now JLR's fastest growing markets.

Also Read:  See auto revival only post new govt formation: M&M

"Our unrelenting focus on design, technology, innovation and quality has seen Jaguar Land Rover reach global consumers in more markets than ever before thanks to its most desirable product line-up, enriched further in 2013 by the Jaguar F-TYPE and all-new Range Rover Sport," said JLR CEO Ralf Speth.

Sales have been doing particularly well in the US and Germany, besides the rapidly growing developing economies of India and China.

Globally, Land Rover proved the firm favourite among customers representing the largest share of sales with 348,383 sold in 2013, an increase of 15 per cent.

But demand for the luxury Jaguar has also surged over the last 12 months, almost doubling its international sales to 76,668.

The UK-based company is now planning to hire nearly 2,000 extra employees to meet growing demand, bringing its total staff in the country to more than 26,000.

Around 600 jobs will be created over the next four years at the firm's site near Wolverhampton in the West Midlands.

More than 500 million pounds are being invested in the centre, where low-emission engines will be built.

JLR also has design and manufacturing plants in Merseyside and Warwickshire, with a head office based in Coventry.

The company claims to support over 190,000 UK jobs through its overall supply chain and dealer network and has plans to invest 2.75 billion pounds in its products and facilities in the financial year ending March 2014.

The latest sales figures are yet another resounding vote of confidence for the Tata Group, which acquired the flagging brands in 2008 amid a global economic slowdown.

"It is not just our customers who are delighting in our strongest ever vehicle line up, international journalists bestowed almost 200 awards on our vehicles in 2013 with the F-Type, our star performer, receiving more than 59 accolades," said Andy Goss, JLR Group Sales Operations director.

JLR is one of the UK's largest exporters and generates about 85 per cent of its revenue from exports.

Tata Motors stock price

On January 10, 2014, Tata Motors closed at Rs 368.15, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 405.00 and the 52-week low was Rs 252.10.

The latest book value of the company is Rs 59.47 per share. At current value, the price-to-book value of the company was 6.19.

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Piramal's stake deal with Shriram Cap set to materialise

Billionaire industrialist Ajay Piramal's bid to pick up a stake in Shriram Capital will be fructified this quarter, a top official from the diversified financial group has said.

"We have been talking to him (Piramal) and we believe this quarter the deal should happen. The issue is more on how much percentage of stake we should give to him. But in this quarter it will be definitely concluded," GS Sundararajan, group director, Shriram Group, told PTI.

Mr Piramal is already associated with the group after he picked up private equity major TPG's 10 percent in used-commercial vehicles financier Shriram Transport Finance  last year.

Mr Sundararajan said henceforth, the group, which has seen the participation of many a private equity firm in the past, will focus more on strategic investors rather than PEs.

The group executive, who is also the managing director of Shriram City Union Finance , the SME, two-wheelers, gold and housing financier of the group, said the group will not need any fresh capital for the next 18 months.

The home loan business, which was started two years ago with a capital of Rs. 270 crore from the parent company, may need some capital over the next 18 months as it expands its book, he said.

Shriram Trans stock price

On January 10, 2014, Shriram Transport Finance Corporation closed at Rs 602.60, down Rs 7.7, or 1.26 percent. The 52-week high of the share was Rs 841.80 and the 52-week low was Rs 465.20.

The company's trailing 12-month (TTM) EPS was at Rs 60.34 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 9.99. The latest book value of the company is Rs 317.11 per share. At current value, the price-to-book value of the company is 1.90.

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Is Hyderabad's realty market under priced?

With clarity on Telangana, property prices in Hyderabad all set to appreciate considerably. The focus is now on Hyderabad's property market.

The cabinet decided to bifurcate Andhra Pradesh, carve out Telangana and make Hyderabad the joint capital. This is expected to bring the cybercity's realty market on the road to recovery. Residential prices did not budged since 2009 and that had driven investors away to other cities like Chennai and Bangalore.

However, with prices now expected to zoom, we grilled Jones Lang LaSalle on investment opportunities. The consultant began by telling us Hyderabad's realty market is currently very under priced.

Also read: Why Indian realtors would like to forget 2013 in a hurry?

Excerpts of CNBC-TV18 interview with Sandip Patnaik, MD-Hyderabad Jones Lang LaSalleIndia

Patnaik: The CBD, central part of Chennai, Poes Garden is trading at Rs 28,000-30,000 per square feet. In Hyderabad Banjara Hills and Jubilee Hills are trading Rs 7000-9000 square feet – just to give an example what is the mismatch.

40 kilometers out from the CBD in Chennai in Old Mahabalipuram Road(OMR) Road, end of OMR Road the rates are Rs 5500 whereas in HITEC City which is hardly 8-9 kilometers from the CBD, Jubilee Hills is trading at around Rs 5000-5500. That is the potential Hyderabad has and last four to five years Hyderabad has not seen the right prices because of the political scenario. If you talk of the tier-2, tier-3 cities even in tier-3 cities in Andhra Pradesh like Vijayawada the rates are much higher than what it is in Hyderabad. So, there is a lot of potential for the prices to go up and the real estate market to benefit from the price rise.

Q: If there is a mismatch, just what kind of a price appreciation are you anticipating?

Patnaik: Next two to three months it might be stable or flat or might increase by 5 percent. However, after three to four months once the final process is over for the state bifurcation, prices will go up by 15 percent. After the state elections and I am hopeful the prices will go up by at least 20-22 percent after the elections.

Q: Back in August we also heard that prices in Hyderabad would zoom. This was after the Group of Ministers (GoM) had approved of the creation of Telengana. But that never happened. So how are you so confident this time round that prices will indeed appreciate?

Patnaik: That is my worry though we might see 2-5 percent improvement in the sales but there are a lot of ifs and buts are there. Until and unless the final decision of state bifurcation happens and the state election happens – as you know Andhra Pradesh is going to have the state elections along with the central elections by the mid of next year I feel as an member from fraternity in real estate in Hyderabad I see the real jump in prices will come post elections next year. Till then the market will be stable or might see few percentage rise in the sales. However, the real jump will be after the state election next year mid.

Q: In a nutshell you're saying this is a great entry point for investments in Hyderabad. Now tell us which are the growth corridors of the city?

A: Though the established area as of now is HITEC City and in around HITEC City Gachibowli and Miyapur but I see a strong potential after 5-6 months the corridor which is adjoining the outer ring road. So, obviously we have already seen some developments coming till up to Narsingi junction. However, after Narsingi up to close to the airport in that stretch up outer ring road a lot of land available and because of the better connectivity of the outer ring road and service road I see that is the next growth corridor. This is the western part of the city what I am talking of. But we have still a lot of potential in the eastern quadrant where Infosys has set up a 400 acre campus in Pocharam. So, from Pocharam towards Gatkeshwar further down still there is a lot of potential. The land prices are low and developers are yet to take a bet but because of the outer ring row connectivity this part of the city is also going to develop and people who are going to invest in plots this is the right place to invest in the plot.

Q: Let us take that up one by one. First up the western corridor; what kind of prices are currently prevailing?

Patnaik: There is certain development like Nagarjuna Constructions are doing close to Narsingi. There the prevailing rate is Rs 3500 per square feet as far as the flats are concerned. The lands if you talk of, prevailing rates is between Rs 6-8 crore per acre. But what I see that as HITEC City is getting saturated and because its close proximity to outer ring road this location now further down Narsingi and to Appa junction this is the right place for developers to start their projects. Even if the distance is at least 8-10 kilometers from HITEC City because of the outer ring road connectivity it will hardly take 6-10 minutes to reach that place. So, these are the places where we see future the developers are going to invest. As of now there are only one or two projects there and trading at Rs 3500 per square feet.

However, according to PWC, Chennai has caught the fancy of investors while Mumbai and New Delhi seem to be losing their sheen.

Whereas, Financial consultant Capital Mind warns that we are only in the beginning of a down cycle and this rare bearish voice is convinced prices will fall further. It is advising clients to sell properties and hold onto purchases.

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Innovation made us strong in India; optimistic on '14: Rado

Innovation was the key to Rado's success in India in the past 50 years, believes Matthias Breschan, CEO, Rado. "We have to make sure that we also continue to innovate in order to stay strong for the coming 50 years," he adds.

He says the luxury watch brands that are suffering today were doing rather well quite a few years ago. But they increased their prices without having altered the substance, the value that is inside the product.

Also Read: Luxury brands step up battle for travelling shoppers

He doesn't see the need to move Rado upstairs because it is positioned between Tissot and Omega. "We have a strong brand in each price segment, so our objective is clearly that we always try to bring best value for the price segment that we are strong in," Breschan told CNBC-TV18.

According to him, 2012 was a historic record year. He does not see why 2013 will not be another record year. He is also very optimistic about 2014.

Below is the verbatim transcript of Matthias Breschan's interview on CNBC-TV18

Q: I want to understand from you if you talk about Rado's global expansion plans and global expansion strategy, what are your plans in India going forward in terms of expansion, in terms of growth, what are you looking at right now?

A: What made us very strong in the past 50 years in India was that Rado was permanently innovating. We have to make sure that we also continue to innovate in order to stay strong for the coming 50 years.

Q: In terms of the consumer market as a whole in India, the consumer story has been growing despite challenges that are present in the Indian market, despite the slowdown that we have been seeing. Specifically talking about the luxury watch segment, it takes around 50 percent of the overall luxury product market as a whole. Do you see that segment growing in India?

A: The brands that are suffering today are those that were accelerating several years back when some brands increased prices drastically without having changed the substance, the value of the product and of course you can always reposition your brand back. You need to make sure that if you change the price, you need to change at the same time the substance, the value that is inside the product. If you only change the price and tell people from one day to the other that now you are good because the product is more expensive is somewhat cheating the consumer and those brands that stay disciplined, try to bring in best substance, value for money, even when the market is getting more difficult they turn out to be very successful.

Of course the Swatch Group, we have a big advantage because we have a leading brand in each of the price segment. We have no need to move Rado upstairs because Rado is positioned right between Tissot and Omega. We have a strong brand in each price segment, so our objective is clearly that we always try to bring best value for the price segment that we are strong in.

Q: Last two years have been fairly challenging for the consumer market, as well to an extent people are rethinking there are inflationary pressures, people are rethinking large scale purchases. Why it is still happening? I want to understand from you last two years how did you segment and position your pricing accordingly to meet those challenges?

A: I must say for Rado as well as for the Swatch Group, 2012 was a historic record year and there is no reason that 2013 will not be another record year and we also stay very optimistic for 2014. I think the reason for this success is first of all because the Swatch Group is present in all different price segments. Brands like Rado that were traditionally always very strong in the price segment of 1,000-4,000 Swiss franc always try to improve the substance, offer that we have in this price segment, but never changed or moved out of the segment that Rado was traditionally stronger in.

Q: In 2013-2014 you will continue with the current pricing strategy, but given the fact that there had been some challenges, any major changes or any major repositioning of your strategy that you may look at?

A: Of course. The strong depreciation of rupee hurts us like everybody else, but there is nothing we can change about this.

Q: Any kind of change in your pricing strategy? You will continue to have products across the globe, across price segments; that is what you are looking at?

A: Exactly. No changes.

Q: How different is the Indian consumer from the global consumer?

A: The Indian consumer definitely became very knowledgeable and demanding in the past 10-15 years in terms of watches, because of course not only the perception of watches changed a lot, the watches are not simply a tool anymore to tell the time, but it became an accessory that says something about your personality, your lifestyle, your preferences, your values and the consumer is more and more educated also about technical aspects in terms of materials on one side and movements on the other. That had changed the whole perception at the market in the past 10 years and that helps us to develop Rado so well in India.

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Tackled Lehman Crisis by communicating effectively: Kochhar

The managing director and chief executive officer of India's biggest private bank- ICICI Bank - Chanda Kochhar believes that at the time of Lehman Crisis, the first thing needed to do was to clear the customers perception of the bank's exposure to the Crisis.

Speaking to CNBC Asia, Kochhar said she continued to communicate and instill confidence among her employees in dealing with customers who panicked and made a dash to the bank branches to withdraw their holdings.

Also read: India's economy is out of the woods: ICICI CEO

" One of the option was to keep the branch open even till 2 am in the morning and ask the customers to come in, serve them water and tell them atht nothing is wrong with the bank. After that, if they still wanted to withdraw money, they could," she adds.

Below is the edited transcript of Kochhar's interview.

Q: ICICI Bank didn't escape the global financial crisis when Lehman collapsed in September 2008. A lot of people were afraid that bank was going to go under. Suddenly thousands of people were lining up in front of your branches and ATMs to withdraw cash. As a CEO how did you go about instilling calm amidst all the chaos, amidst all the panic?

A: That was a crisis of perception and not so much of reality. We did have exposure to Lehman Brothers and that is what created anxiety amongst people but that exposure was not even one percent of our balance sheet. The first important requirement of me as a leader was to clear that perception.

Q: How did you go about doing it?

A: It was very difficult at that time but the most important part was to keep communicating.

Second was to take on the ground action to ensure that the operations don't get destabilised. If there are thousands of people waiting in the branch wanting to withdraw cash, get into the details of looking at the logistics and saying is cash available in branches. If they want to withdraw, there should be no shortage of cash.

The last one was to instill confidence amongst the employees, especially the people at the branch. I was talking to the branch managers directly and telling them to show their confidence and patience towards the customers.

Q: How did you do that?

A: We had two options, one is that at 5 pm just put the shutters down and say sorry the branch is closed you can keep standing outside but we will see you tomorrow or the other option was to keep the branch open even till 2 am in the morning and tell the customers come in, we will give you water and tea but we will tell you nothing is wrong with us. After that if you still want to withdraw money you can withdraw money.

ICICI Bank stock price

On January 10, 2014, ICICI Bank closed at Rs 1024.55, down Rs 26.95, or 2.56 percent. The 52-week high of the share was Rs 1236.90 and the 52-week low was Rs 758.80.

The company's trailing 12-month (TTM) EPS was at Rs 79.51 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 12.89. The latest book value of the company is Rs 577.67 per share. At current value, the price-to-book value of the company is 1.77.

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Individuals can be tried without being named as accused: SC

Jan 10, 2014, 10.04 PM IST

This development is likely to have serious repercussions for Airtel's Sunil Mittal and Essar's Ravi Ruia who have been named in the additional spectrum case.

Tags  Bharti Airtel, Essar Teleholdings, Ravi Ruia, Sunil Mittal, 2G case, spectrum case

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Individuals can be tried without being named as accused: SC

This development is likely to have serious repercussions for Airtel's Sunil Mittal and Essar's Ravi Ruia who have been named in the additional spectrum case.

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

Individuals can be tried without being named as accused: SC

This development is likely to have serious repercussions for Airtel's Sunil Mittal and Essar's Ravi Ruia who have been named in the additional spectrum case.

Share  .  Email  .  Print  .  A+A-

The Supreme Court today stated that a person can be tried even if he or she is not named an accused or even if his/her name is not in a chargesheet. The only criteria for trying the person is if there is any evidence against them.

This development is likely to have serious repercussions for Airtel 's Sunil Mittal and Essar 's Ravi Ruia who have been named in the additional spectrum case.

Also read: MTNL shares gain on 4G spectrum refund

While both Mittal and Ruia have challenged the summons issued to them in the 2G case, this judgment could open up chances of their trial if there is evidence against them.

Bharti Airtel stock price

On January 10, 2014, Bharti Airtel closed at Rs 330.60, up Rs 1.40, or 0.43 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 266.95.

The company's trailing 12-month (TTM) EPS was at Rs 11.45 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 28.87. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company is 2.44.

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Tata-SIA to aqcuire 20 Airbus A-320 on lease

The full service airline to be launched by Tatas and Singapore Airlines has decided to acquire 20 Airbus A-320s on lease, informed sources said today.

The start-up airline plans to launch its flights by July, subject to regulatory approvals, and the planes are likely to start getting inducted weeks before that, industry sources said.

When contacted, a Tata Group spokesperson told PTI: "we have decided to lease 20 Airbus A-320s and these aircraft will be leased and not purchased." Industry sources said the Tata-SIA decision to lease A-320 aircraft is understood to have been taken given the competition prevalent in the Indian aviation industry, where several airlines ranging from Air India to IndiGo operate these aircraft.

Also read: Tail Wind working against the Jet-Etihad deal?  

There is also an inventory of A-320 in the market, apart from trained pilots, they said. According to the list price of this aircraft, purchase of 20 such planes would cost over USD 1.8 billion. However, the Tata-SIA would be leasing these aircraft and purchasing them. In this joint venture which received FIPB approval in October last year, Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 percent.

It would have an initial combined investment of USD 100 million from the two stakeholders. While seeking approval of their proposal to offer full- service passenger airways on both domestic and international routes, Tatas and SIA have assured the government that control of their proposed venture would always remain in Indian hands.

The Tata-SIA airline is the third foreign direct investment in the Indian sector, after Jet-Etihad deal and another start-up carrier AirAsia India, since the government declared last year that international airlines could acquire as much as 49 percent equity in Indian carriers.

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R-Jio can continue with 1% SUC under old permit: COAI

Locking horns with Reliance Jio Infocomm, GSM industry body COAI has said it is "illogical" that for offering same technology on different bands, operators pay different charges.

It has also said that Mukesh Ambani-led RJIL -- which has been opposing telecom regulator Trai's recommendation for a uniform annual spectrum fee -- can continue paying current charges by operating only as an Internet Service Provider.

RJIL procured Unified Licence in August 2013 by paying additional Rs 1,673 crore which allows it to provide all telecom services including mobile telephony. Spectrum Usage Charge, a bone of contention between the two groups, is levied annually as a percentage of revenue earned by telecom companies. It varies from 3-8 percent.

Also read: Flat spectrum fee harmful to level-playing field: R-Jio  

COAI has demanded that the government implement Trai's suggestion for a uniform SUC - 3 to 5 percent - from April 1, across the telecom services sector for the success of the next round of spectrum auction scheduled to start from February 3.

COAI has said in response to PTI queries on the issue: "It is illogical that for offering the same technology on different spectrum bands, operators are charged different SUC. For a customer, a mobile broadband 4G BWA technology (to be offered by RJIL) is expected to be similarly priced in a competitive market.

"How can an operator offering same technology recover an additional burden of 5-7 percent spectrum charges."  Redoubling its efforts to counter demands of GSM players for a uniform annual spectrum fee, RJIL said yesterday that a flat fee will disturb the level-playing field for incumbent operators and new entrants.

In a letter to Telecom Minister Kapil Sibal RJIL has said the COAI demands to alter spectrum usage charge "are not only factually incorrect and misleading but are without any valid justification".

On the other hand, citing Trai recommendation that spectrum usage charge (SUC) rate "for BWA spectrum should also be fixed at 3 percent where services are provided under CMTS/UASL/UL (AS)/UL", the Cellular Operators Association of India said: "Reliance Jio is fully within its rights to continue under an ISP license and retain its 1 percent SUC".

RJIL said that if Trai recommendation is accepted by the government, it will burden firms holding broadband wireless access (BWA) spectrum, including RJIL that pays 1 percent SUC at present.

The spectrum allocated to incumbent telecom operators carry mobile signals more efficiently and involves less cost to deploy infrastructure compared to investment needed for providing services using BWA spectrum, according to RJIL.

Hence, the current SUC levied on GSM companies is justified, it has said. COAI had said earlier that spectrum was allocated on the basis of growth in subscribers number on a particular network and only one kind of mobile services were provided to the subscribers.

"Now, there are many bands used for 2G, 3G, 4G... In such a case, it is important to eliminate possibilities of arbitrage and move to a uniform SUC regime. The same has been amply highlighted by Trai in its recommendations," it said.

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Future Grp prioritising food, fashion; focusing 3 verticals

The Future Group has added a posh supermarket to its retail stores under the brand name of Foodhall. Avni Biyani, concept head, Foodhall told CNBC-TV18 that the company's debt position is improving since it has started focusing on simplification of operations.

Below is the edited transcript of the interview

Q: What do you think about the Food Hall?

A: When we first had Food Hall, it was not what we wanted and envisioned it to be. So, it has grown overtime, the format has grown, as people, we have grown. We have understood our consumers better, we have understood the market better and we have understood the format better.

Q: How has the consumption pattern changed?

A: We are seeing some trends which we didn't see 2.5 years back. We think gluten free emerged as a huge trend. Some 2.5 years back, the awareness on celluloid diseases wasn't as large as what it is today. So, we had to tweak our assortment and are keeping many more gluten free products. We are introducing gluten free bread, gluten free cookies.

People are becoming a lot more health conscious. We now have people who are altering their lifestyles to a particular diet.

Q: In terms of debt of the Future Group, do you think that position is likely to improve?

A: We have really simplified the structure. We are focusing on food, fashion. Three strong verticals are now being created and each vertical has its own balance sheet, so, lots of things have simplified. Over the last 2.5 years, if anything has happened we have simplified our way of working.

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More clarity needed on non-compete clause: Medybiz

It is good news that the government has clarified the issue pertaining to FDI cap for pharma sector but it needs to be more specific on the rules behind non-compete clause said Kewal Handa, Chairman, Medybiz Pharma, Former MD,  Pfizer India in an interview to CNBC-TV18.

He feels it is necessary that there is an expert committee that will look into the non-compete clause because if it left to the discretion of few officials, they will use it the way they interpret the entire thing.

He further added, "The government needs to specify which would be the agency who would be looking into this clause then we can move forward and stay with it.

The department of industrial policy and promotion (DIPP) today notified the new FDI policy for the pharma sector. The new policy retains old norms of keeping the FDI cap at 100 percent for the sector.

Moreover, Greenfield FDI proposals will be allowed through the automatic route while Brownfield FDI will be vetted by the FIPB.

But a new clause has been added as per which non-compete clauses will not be allowed for pharma M&A involving FDI.

The new policy says that non-compete clause will be allowed only in special circumstances, and such requests will have to be vetted by the FIPB.

The press note however is silent on what constitutes special circumstances for allowing non compete clause

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

Q: Does the final pharma FDI policy which is now black and white serve the required concerns? Does it allay the apprehensions? Will it excite global pharma companies who are looking at India?

A: We should complement the entire government department to have some clarity on the foreign direct investment (FDI). There was lot of ambiguity and uncertainty and therefore it was holding up lot of investment in this country.

Now we are very clear that 100 percent investment is allowed in Brownfield also except for the clause of non-compete clause. It is a normal practice by any buyer and seller to have a non-compete clause. It helps to avoid the confusion in the market place.

However in this case they have said that the non-compete clause would be very selective, but the government needs to spell out what are the rules behind it and what could be the common way of addressing these issues. It should not be left very open at the discretion of the officials.

This clause might have come in because of some fears of monopolistic situation or in case of cancer products or in case of some export requirements. So, if this clause is there, there will need to be some guidelines coming out of the government that how this clause would be applicable.

Q: That seems to be the point of concern that you have raised. This business of non-compete clauses being applicable but only in special circumstances, the government has not spelt out what special circumstances will be, you are worried about discretion at the level of officers what could the better way be as far as regulators are concerned to ascertain non-compete clause situations?

A: This is fair enough. It gives government an authority to say when non-compete clause would be invoked and when it will not. At the same time, there has to be clarity of how this clause would be applicable. Also the government needs to specify which would be the agency who would be looking into this clause then we can move forward and stay with it.

Q: Who according to you could be a relevant regulator? The CCI has earlier sort of raised its hands up and said that we are not competent enough to rule on matters related to pharma. The government today has said that the FIPB will look at non-compete relates issues. Who to your mind will be better positioned?

A: They will have to take support of two or three regulators both the health ministry, the pharma ministry need to come together and form a small committee in such cases to quickly take a call whether the non-compete clause should be applied or should not be applied.

It has to have a mix of people from the government and experts from outside to take a call. This is very critical otherwise if you leave it with the discretion of few officials there then they will use it the way they interpret the entire thing. This should be avoided and there needs to be an expert committee to decide on this.

Q: You just talked about the situations in where you understand non-compete clauses would perhaps make sense, could you highlight specifically what those instances or those situations should be?

A: Assuming that the buyer is acquiring certain assets, let us say brands or a molecule which is in a monopoly situation maybe the government would like to say that non-compete clause will not be applicable.

Assuming that there are exports to certain countries which the manufacturers are doing, maybe the government says that non-compete clause will not be applicable or maybe there is some technology protected products and in that case the government may say non-compete clause may not be applicable.

Even in case of a huge brand, which has larger implication and the government has a fear that the prices may increase of brands, so they may put a non-compete clause. Maybe these are some of the circumstances where the government may would like to put up that the non-compete clause will not be applicable.

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