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Business news

Now, Bhushan Power goes to NCLT as PNB acts tough

Bhushan Power & Steel today became the sixth amongst the 12 largest indebted companies named by the RBI to face liquidation proceedings, as the lenders led by PNB decided to refer it to NCLT. The proceedings will be carried out against the company under the Insolvency and Bankruptcy Code (IBC). Its parent company, Bhushan Steel, was referred to the tribunal for liquidation yesterday by the lenders led by SBI. The Delhi-based Bhushan Power & Steel, which owes Rs 37,248 crore to a consortium of lenders led by Punjab National Bank, is the sixth out of the 12 large stressed accounts identified by the Reserve Bank earlier this month for referral to the National Company Law Tribunal (NCLT). "Banks at a meeting today decided to refer the case to NCLT for recovery," said a banker. Yesterday, lenders led by SBI had decided to send Bhushan Steel, Essar Steel and Electrosteel Steels to NCLT to initiate insolvency proceedings. While Bhushan Steel is in default of Rs 44,478 crore to .

June 23rd, 2017 15:37

Price-sensitive farmers replacing pulses with cotton

Early onset of the monsoon and its progress has led to an increase in the area sown till Friday of this kharif season, year-on-year. Alongside, the depressed price of pulses have led more farmers to replace it with cotton in some parts. Farmers have brought almost 10 per cent more area under cultivation over the corresponding period of the previous kharif season, despite the current unrest in the community.The southwest monsoon advanced further into the central portion of Maharashtra, Vidarbha, more parts of Chhattisgarh, most of Odisha, West Bengal, Jharkhand and Bihar this week, according to India Meteorological Department. Showers remain deficient in the central part of India, including in Madhya Pradesh.The area sown with pulses had declined 35 per cent by Friday of this kharif season over the corresponding period last year. Pulses and related products saw a price fall of 19.5 per cent in May, in terms of the consumer price index. A higher minimum support price (MSP) announced by .

June 23rd, 2017 15:05

TCS hires 12,500 US employees in 5 years; biggest IT services job creator

India's largest software exporter Tata Consultancy Services has hired 12,500 people in the five years to 2016 in the US, creating more than half of the jobs by global IT services firms in America, according to a study by The Cambridge Report. The Indian software major has spent over US $3 billion (Rs. 19,360 crore) on employment, educational and academic partnerships over the past three years in the US. TCS had posted consolidated revenue of US $17.6 billion (Rs. 1,13,572 crore) in fiscal 2017. "Our industry leading US recruitment, advanced digital training of employees, and academic and STEM partnership programs act as a key contributor to the US innovation economy, while also preparing the current and upcoming workforce with foundational skills needed for 21st century careers" said Surya Kant, President of North America, UK and Europe, TCS in a statement.TCS continues to hire 600-800 people every quarter in specialised roles in digital, cloud architects and even autonomous drone ..

June 23rd, 2017 14:24

Indian Overseas Bank's woes stay despite corrective action for 7 quarters

The Prompt Corrective Action (PCA) plan it was ordered to adopt hasn't yet enabled a turnaround at Chennai-based Indian Overseas Bank (IOB).It was put under the PCR by the Reserve Bank in October 2015 but the government-owned lender continues to report losses in each quarter since, due to the heavy burden of provisioning for loans gone bad. Beside an adverse business climate and the Asset Quality Review ordered by RBI in the second half of 2015-16, with its fallout, uncertainty over appointment of a fulltime chief executive by the government had also hit its performance. R Koteeswaran, full-time managing director and chief executive (MD & CEO), demitted office at end-June 2016. The government appointed R Subramaniakumar as full-time chief only in March 2017. He'd joined IOB as executive director at end-September 2016 on a lateral transfer from Indian Bank. And, was assigned additional responsibility as MD & CEO from November 11, 2016. The higher provision in 2016-17 for ...

June 23rd, 2017 14:15

New Sebi chief Ajay Tyagi making right moves

From new fund raising instruments like municipal bonds and infrastructure investment trusts (InvITs) to passing orders in long-pending matters like the Reliance Industries 'unlawful gain's case, Ajay Tyagi, chairman, Securities and Exchange Board of India (Sebi) has made some right moves in his first 100 days in office.He took charge from predecessor U K Sinha on March 1. The senior bureaucrat couldn't have entered the stock market fray at a more opportune time, with shares climbing to record highs, investor flows into mutual funds at new levels and buoyancy in the Initial Public Offer market. In less than a month, Sebi had barred Reliance Industries from accessing the derivatives market and asked the Mukesh Ambani-led entity to disgorge Rs 447 crore (with 12 per cent interest for 10 years) it was deemed to have made unlawfully. (The company has challenged Sebi's order at the Securities Appellate Tribunal).Another step was tightening of the participatory notes (p-notes) framework. ...

June 23rd, 2017 13:51

MMTC floats tenders for pig iron exports by NINL

State run trading company MMTC Ltd has invited global tenders from interested overseas buyers for exports of non-alloy pig iron. The pig iron has been produced by public sector steel company Neelachal Ispat Nigam Ltd (NINL) where MMTC is the largest equity holder.The exports of pig iron of up to 30,000 tonnes would be canalised through MMTC. The material is to be shipped through the Paradip port. In last fiscal, NINL produced 0.51 million tonnes of pig iron and sold 0.5 million tonnes (mt).In the first two months of 2017-18, NINL's pig iron sales has not matched its production. In April, the steel maker produced 55,949 tonnes of pig iron but managed to sell 29,949 tonnes. Likewise, NINL sold 38270 tonnes of pig iron against its production of 58,283 tonnes. NINL produces both basic and foundry grades of pig iron.NINL has become the country's largest exporter of saleable pig iron since 2004-05 . Pig iron and LAM (low ash metallurgical) coke produced by NINL has established its ...

June 23rd, 2017 12:41

HTC Global acquires US firm Ciber Inc for $93 million

BS ReporterHyderabad, 23 June: IT services company HTC Global Services has acquired Ciber Inc., a US based global IT consulting and outsourcing services company for $ 93 million. Established in Troy, Michigan in 1990 by Indian entrepreneur M Madhava Reddy, HTC Global has taken this strategic move towards further strengthening its position globally. The acquisition of Ciber Inc. will add over 3,500 employees to HTC's 10,000 strong workforce. In 2014 the company had acquired US company CareTech Solutions for an undisclosed sum with a view to expand its footprint in healthcare sector." This acquisition will further boost the organisation's ability to deliver exceptional customer service, deep expertise in cutting edge technologies, and passionate focus on building trusting relationships. With the acquisition of Care Tech and Ciber Inc., we are confident of achieving our vision of becoming a $ 1 billion company by 2020. We will be recruiting another 5,000 people by 2020," Madhava Reddy ...

June 23rd, 2017 12:19

Sebi says DLF restructuring leeway subject to HC nod

Capital market regulator Sebi has said the proposed restructuring among promoter entities in DLF will be exempt from open offer obligation if the deal is approved by the High Court.The real estate developer had sought an 'informal guidance' from Sebi on a restructuring proposal that would a seen promoter group firm Rajdhani Investments & Agencies (applicant) stake go up from 0.01 per cent to 54.08 per cent in DLF."With a view to consolidate the holding and streamline the promoter group companies' structure, it is proposed to merge all the 10 transferor companies into the applicant through a composite scheme of merger with the approval of High Court. There will be no change in total promoter group shareholding of 74.95 per cent in DLF as 54.08 per cent shall be held by the applicant and the remaining 20.87 per cent shares shall continue to be held by other existing promoter group entities," DLF had written to Sebi in a letter dated March 24."The conditions for availing exemption ...

June 23rd, 2017 12:18

Flipkart looks at hackathons for new solutions to engage people, grow biz

Flipkart is looking at hackathons as a way to fast track innovations and build solutions that can be implemented in its business quickly. So far, the company says a little over a dozen such solutions have made it to production, born at hackathons over the past six years. The company's seventh such 24-hour annual hackathon will come to a close on Friday, with over a 100 solutions emerging from it. Flipkart says unlike other schemes to help engineers come up with new innovations, hackathons works best because they have fewer restrictions on what engineers can build. "It's an engagement program to empower our engineers to create something that excites them. Engineers have a green signal to take projects to production, get experimental data and then take a call on its viability. The teams just come together organically with their ideas," said Amar Nagaram, Engineering VP at Flipkart. The theme of innovations range from increasing customer impact, easing customer experience and ...

June 23rd, 2017 12:18

Hyundai, Ceat and PSA Peugeot plan to invest Rs 13,000 cr in Tamil Nadu

Automobile companies are planning to invest around Rs 13,000 crore investment in the State. The automajors include Hyundai, CEAT and PSA Peugeot. The development comes at a time when the state lost some of the big ticket investments include Kia's to the neighbouring state.Speaking at the Assembly today, M C Sampath, minister for Industries, Tamil Nadu Government said that Hyundai is planning to invest around Rs 5,000 crore in expansion.While the company officials were not available for comment immediately, the Minsiter said Kia Motors decided to invest in Andhra Pradesh because they have a global policy, which states Hyundai and Kia will not facility in the same state.According to Tamil Nadu Government Industry Department's Policy note, which was tabled at the State Assembly today shows Hyundai is planning to invest around Rs 5,000 crore in expanding cars and cars engines capacity.Early this year, Hyundai Motor India Ltd (HMIL's) Managing Diretor Y K Koo said that that the existing ..

June 23rd, 2017 12:04

Clear our dues before stake sale: Air India pilots to govt

dia pilots are not opposing privatisation but want their salary dues of Rs 400 crore cleared before government initiates further steps on stake sale."We are not averse to privatisation per se. Our only concerns are that the airline should be sold at a fair value and our pending dues be cleared before the sale," said a senior captain from the airline who did not wish to be named.Both unions - Indian Pilots Guild and Indian Commercial Pilots Association have taken a similar position with respect to privatisation. Other employee unions differ. Seven other unions have warned the government of large-scale protests if a proposal from NITI Aayog to privatise the national carrier is approved. In January 2013 the Air India management cut staff salaries by 25 per cent on an ad hoc basis amid worsening financial conditions. The salary cut was undertaken before the implementation of the Dharmadhikari Committee report and employee unions' challenged the salary cut as it was done without a ...

June 23rd, 2017 11:52

Mindtree to consider share buyback

Mid-size IT services firm MindTree said it would look at share buyback plan, joining larger firms such as TCS, Infosys, HCL. The company has informed the BSE the proposal for a buyback would be taken up at the Board meeting on June 28. "...a meeting of the Board of Directors of the Company will be held on June 28, 2017 to inter-alia, consider the proposal to buyback the fully paid-up equity shares of the Company. Further, pursuant to Company's Code for Prevention of Insider Trading, the Trading Window of the Company will be closed from June 26, 2017 to June 30, 2017 (both the days inclusive) for the Designated Persons and others," said the Bengaluru-based company in a filing. Mindtree has a market cap of Rs 8749 crore and its share price closed Rs 1.45 or 0.28 per cent up at Rs 520.70 on the BSE on Thursday. Analysts say the company might consider a token buyback of shares, which could be worth a small percentage of the market cap. IT services companies have started opting for ...

June 22nd, 2017 19:44

Sebi to take action against United Breweries over non-compliance

The Securities and Exchange Board of India (Sebi) is planning action against United Breweries (UB) for failing to comply with the order barring Vijay Mallya, still chairman of the latter, from holding any key positions in listed companies.Sources say there could be strictures against UB under Clause 49 of the listing agreement, which allows suspension of trading and a monetary penalty. The role of independent directors (IDs) has also come under the scanner.Earlier this year, the markets regulator had barred Mallya from any board position or acting as a key managerial person in listed entities. And, from accessing the securities market, citing allegations of fund diversion of Rs 1,880 crore from United Spirits (USL). UB is now 43 per cent owned by Heineken and 30 per cent by Mallya and his holding companies. In February this year, when the BSE exchange asked for the status of compliance with the Sebi order, UB said it had urged Mallya to step down as chairman. Mallya had refused to do .

June 22nd, 2017 16:43

Distress sales of garlic, complain farmers

Despite an output decline of about a fifth, which normally supports a price rise, farmers are selling garlic at reduced prices, they complain, due to stringent procurement norms from government agencies.At the benchmark Neemuch (Madhya Pradesh) Agricultural Produce Market Committee yard, the average quality is quoting at Rs 10 a kg, the modal price being around Rs 25 a kg. In Pipliya (Madhya Pradesh) mandi, which contributes nearly a fourth of India's entire quantity of arrivals, garlic is selling at Rs 13 a kg. In Allahabad, garlic has lost around a quarter of its value in the past month to trade currently at Rs 24 a kg, due to a sharp increase in its arrival and paucity of bulk purchasers. Apart from its use as a spice, it is also consumed to make a number of ayurvedic medicines and, hence, is also categorised as a medicinal plant. "The current Rs 10-12 a kg in a majority of regions of Rajasthan, Madhya Pradesh and Uttar Pradesh is bizarre for garlic farmers. Their cost of ...

June 22nd, 2017 16:38

Gold back at last year's Brexit level

The global price of gold is again around the same level as a year before, just before a majority of British citizens voted to exit the European Union.In June 2016, speculation on the Brexit vote pulled gold from $1,204 to $1,256 an ounce. When the voting result was out on June 23, the rally continued till $1,366 an oz in July. Now, though, gold is back to trading around $1,250 an oz. In India, standard gold in Mumbai closed at Rs 29,530 per 10g on June 23 last year; now, it is Rs 28,695 per 10g, about 2.8 per cent less.Ross Strachan, precious metals demand manager at GFMS Thomson Reuters, said: ""On June 23, when the UK voted to leave, the pound took a sharp plunge and the price of gold in sterling terms gained 25 per cent in the fortnight after. But, the impact was shortlived. Thereafter, the vote had no tangible effect. At the higher gold price, scrap inflow increased to multi-year highs, while jewellery and investment demand saw a marked drop. Given the political uncertainty since .

June 22nd, 2017 13:32

Branded hotels' occupancies grow but tariffs yet to catch pace

The rising occupancy at branded hotels in the domestic market is yet to reflect on the room tariffs. Average occupancy rates is estimated to have hit a nine year high of 65 per cent in FY17 bringing cheer to the industry. Tariffs, even after an improvement, is lower than the last peak seen in several years of the last one decade. The average tariff for branded hotels declined 30 per cent since FY08 to Rs 5,541 in FY16, HVS data showed. Tariffs would have seen some growth in FY17 but would be nowhere closer to the Rs 6,000 plus rates seen between FY10 and FY12 and much lower to Rs 7,000 plus rates seen during the period between FY07 and FY09. While tariffs have not kept pace, cost of operations continue to go up due to higher wage cost, power tariffs and cost of consumables. In its 2016 report, hotel consultancy firm HVS said the increase average daily rate during FY16 was ordinary but points to an improvement in the health of the sector.Indian Hotels Company, which runs hotels under ..

June 22nd, 2017 13:06

Iron ore export slumps with fall in global prices

Iron ore exports from India were down 53 per cent in the past two months as China, a major consumer, took better quality ore from Australia to feed its integrated steel plants, taking advantage of a slump in global prices.Macquarie Research says after a surge in iron ore export to 49 million tonnes (mt) in March, these slumped to 23 mt in May. With seaborne ore prices down 40 per cent from the peak in late February, the Indian high-cost export is fading away. Shipments from Goa have become unviable and volumes from the east coast have started diverting to domestic markets, it said.Spot iron-ore prices have slumped to $55 a tonne, from a recent peak of $94.5 a tonne in late February.Indian iron ore production saw 23 per cent growth in FY17 over a year before, at 190 m. The report forecasts production to grow to 206 mt, up eight per cent. With declining export, it expects a domestic surplus of 18 mt in FY18, adding to the surplus of 14 mt in FY17. According to an industry expert, the ...

June 22nd, 2017 13:04

Investors redeem equity MF units worth Rs 72,000 cr during Jan-May period

A section of equity mutual fund investors - mainly the smart investors - have either redeemed their units thus far this year or there is a lot of re-alignment of funds in their portfolios resulting into a churning of money from one set of funds to other funds.In the last five months (January- May), equity schemes have seen a robust inflows of Rs 40,000 crore on a net basis. This essentially means that quantum of money coming in is outpacing the amount of money going out. However, if one looks at the overall gross sales which stands at a whopping over Rs 1,12,000 crore during this period, it suggests that redemptions have been on a much higher side.Statistics from the Association of Mutual Funds in India (Amfi) show that in a span of the first 5 months of the calendar year 2017, investors have redeemed equity units worth Rs 72,708 crore. This translates into an average redemption of over Rs 14,500 crore each month at a time when Indian stock indices are hovering at their historic ...

June 22nd, 2017 12:44

Views differ on gold's investment use after its low returns in past 5 years

Is gold losing its age-old status as a store of value? Sanjeev Prasad, head of Kotak Institutional Equities, believes so. He points to the less than satisfactory return it has shown as an investment over the past five years.India, he says, imported and 'consumed' over $300 billion worth of gold between 2007-08 and 2016-17, financing the resultant trade deficit through large capital flows. Some of which has gone into increased foreign ownership of Indian companies, now at almost 25 per cent of the top-200 stocks. Foreign Portfolio Investors bought $124 bn of Indian equity over FY08-17, the value of their holding going to $368 bn (BSE-200 Index basis) as of end-March 2017, versus $132 bn at end-March 2007. Gold prices, he says, rose three-fold in rupee terms over this period. He says the bulk of the FPI investment and of gold import happened during years of high inflation. With inflation now coming under control, he says, and the Reserve Bank targeting lower inflation than in the past, .

June 22nd, 2017 12:22

Regional connectivity scheme: GoAir seeks partners for regional play

GoAir may partner with smaller airlines to link unserved towns as a part of government's regional connectivity plan. "We are looking at possibilities and we may team with regional airlines," GoAir CEO Wolfgang Prock-Schauer said today. Such a tie up would enable airlines to feed each others' network. The scheme allows participating airlines to code share with other carriers. Code shares are commercial agreements which allow airlines to sell tickets on each others' network. Prock-Schauer said GoAir was in preliminary discussions with regional operators but declined to name them or the nature of planned partnership.The government kicked off regional connectivity scheme in April opening up 31 new airports for scheduled traffic in the first phase. Low cost airlines SpiceJet will launch regional connectivity flights next month and IndiGo has ordered ATR aircraft to participate in the scheme.But unlike its rivals GoAir will stick to a single aircraft fleet of Airbus A320 and will not ...

June 22nd, 2017 12:00

Cleanmax Solar to invest Rs 500 cr in roof top solar projects this year

Bengaluru-based solar energy firm Cleanmax Solar, which reported to have a 23 per cent market share in roof top solar space, is planning to double its roof top installation to 100 MW with an investment of around Rs 500 crore. The company is in talks with various investors including private equity firms to raise funds."Last year in roof top solar, we did around 45 MW projects. In the current fiscal year we are looking at something upwards of 100 MW in rooftop. The utility projects to corporate customers saw an installation of around 65 MW last year and we are planning to have 150 MW during this year," said Andrew Hines, co-founder, CleanMax Solar.The investment would be approximately Rs 5 crore per megawatt as project cost and it would require roughly Rs 500 crore for the roof top projects this year. Around 70 per cent would be debt and the rest would be equity. The company is in discussion to raise private equity fund, which is not concluded yet. "We are looking at equity funding for .

June 22nd, 2017 08:40

India makes its presence felt at global ad show

While India sent 1,300 entries last year to the Cannes Ad Fest, the number was down nearly eight per cent to 1,200 entries this year

June 21st, 2017 19:28

Uber India faces uncertainty on Kalanick's exit

Analysts say that with Kalanick gone, the days of Uber's hyper growth are over, something that employees will struggle with in the short term

June 21st, 2017 18:54

Coal companies go slow on spending, 52% of targeted expenditure met

Three state run coal companies- Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) and NLC Ltd (formerly Neyveli Lignite Corporation) have spent only 52 per cent of their targeted expenditure till May this year. At the end of May, the combined target for spending is Rs 1757.91 crore of which only Rs 917.69 crore has been spent by the three coal PSUs.Data by the Ministry of Coal shows the total Plan outlay for CIL, SCCL and NLC for this fiscal is pegged at Rs 19048.12 crore. NLC has the biggest outlay of Rs 8948.12 crore followed by CIL (Rs 8500 crore) and SCCL (Rs 1600 crore). On coal production, both CIL and SCCL fell short of their assigned targets in the April-May period. CIL produced 79. 2 million tonnes (Mt) of coal by May end against its target of 91.7 mt. SCCL fared better though its production at 9.5 mt in the same period was less than the targeted 10.5 mt.Overall coal despatches by both CIL and SCCL showed improvement over the previous fiscal. CIL's coal despatch .

June 21st, 2017 18:40

Hinduja Leyland Finance calls off IPO plan

Hinduja Leyland Finance Ltd, a subsidiary of commercial vehicle major Ashok Leyland Ltd offering vehicle finance and loan against property has decided to call off its plans for an Initial Public Offering (IPO). The IPO was expected to take place last fiscal year.The company was expecting to raise around Rs 500 crore as equity through IPO. The IPO was planned during the last quarter of last year and with demonetisation, the company decided not to hit the market during the time."The Board of Directors of HLFL at their meeting held on May 23, 2017 had decided to withdraw the DRHP (Draft Red Herring Prospectus) and accordingly the DRHP had been withdrawn from SEBI on June 16, 2017," said a filing by the company in the Bombay Stock Exchange."The existing investors infused around Rs 250 crore into the company last year. We raised another Rs 100 crore during this quarter, which served the requirement of capital," said S Nagarajan, executive vice chairman of the company.Hinduja Group holds ...

June 21st, 2017 17:28

Global pharma sales face $60 bn hit due to pricing scrutiny: market study

A report by market intelligence firm Evaluate has cut five year global pharmaceutical sales forecast by $ 390 billion amid rising scrutiny of drug pricing and price erosion in various markets.The report states that patent expiries of drugs valuing $ 194 billion will erode sales of multi national pharma companies but this will benefit Indian drug makers which continue to face challenges due to pricing pressure and regulatory issues.Evaluate estimates global pharmaceutical sales at $ 1.06 trillion in 2022 down from $ 1.12 trillion forecast for the same period last year."This slight retraction is likely due to a number of factors but the continued squeeze on pricing is almost certainly a major one. Although (US president) Donald Trump has yet to directly intervene on the US drug costs, the threat remains ever present and some pharma companies have announced their own pre-emptive strikes by publicly announcing caps to price hikes," Evaluate said in its report. It also cites other ...

June 21st, 2017 15:35

PVR Cinemas to add 75 screens this year across country, take total past 650

Multiplex chain PVR Cinemas is planning to add around 75 screens to its capacity during this fiscal year, taking the total number of screens it has to around 650.The company is looking at adding facilities in various locations including Pune, Mysore, Jammu and others during the year, adding to the current total of 584 screens across 127 properties in 50 cities. Last year, it added aroud 48 screens, said Gautam Dutta, CEO, PVR Ltd."This will include both malls and standalone propereties," he added.The company today launched a 5- screen property at Grand Galada Centre Mall, Chennai and will be adding two more properties in Chennai in next 18 months, both in malls. With this launch, the total screen count of PVR Cinemas in the city reaches to 17 screens at three properties and has a 65 per cent occupancy. In southern region it has 130 screens and 20 multiplexes."This launch is another step towards achieving a mark of 1,000 screens in India by 2020," he said.Spread across 40,000 sq-ft, ...

June 21st, 2017 14:43

Govt allows resource starved start-ups to raise deposits from shareholders

Easing the process of raising funds for start-ups, the ministry of corporate affairs has allowed these companies to raise deposits from their shareholders. This will be over and above the stake one holds in the start-up. Before the government amended the rules under the Companies Act to this effect, only limited liability partnerships could avail of this.The Companies Act recognises an entity as a start-up if its annual turnover for any of the financial years since incorporation is less than Rs 25 crore.The deposit could go up to stakeholders' contribution to the paid-up capital. Since deposits are loans, these would not impact shareholders' stake.The amendment to the rules is part of a recent efforts by the government to make life easier for start-ups. The ministry has also amended the rules on exemptions under the Companies Act, sparing start-ups from filing cash flow statements. These companies will only have to file profit-loss statements. The ministry has also brought down the ...

June 21st, 2017 14:18

10 days ahead of GST launch, India Inc frets over anti-profiteering rules

With barely 10 days for launch of the national goods and services tax (GST), corporate India says it is unclear how the anti-profiteering regulations will work. "What the GST Council released this week was some process rules for the way cases and challenges will be handled but it has not defined the 'how' of these rules' working," says Robert Tsang, GST implementation leader at consultancy Deloitte Touche Tohmatsu India.The rules outline the procedure to be followed for investigation and enquiry but not the mechanism for calculating of profiteering, says Pratik Jain, partner at consultancy PwC. "Businesses will have to themselves work these out," he adds.Anti-profiteering regulations in Australia and Malaysia largely used the net profit margin rule to determine any 'unreasonable' high profit. Legal experts say the Indian regulations do not provide policy guidance on how GST taxpayers are to determine the extent of cut in price to meet the test of "commensurate reduction" under ...

June 21st, 2017 13:44

Reliance Defence forms JV with Thales for IAF's Rafale jet production

French defence firm Thales, supplier of radar and electronic warfare, display systems, software, communication solution to Rafale jet fighters set up a joint venture with Anil Ambani's Reliance Defence Ltd to integrate India-specific capabilities for 36 Rafale jet fighters and maintain radars and manufacture high performance airborne electronicsThe Indian government signed a contract to purchase 36 Rafale fighter jets in fly-away condition for Indian Air Force in last September for $8.8 billion. The JV will also serve to leverage Dassault's offset commitment as part of the deal for the supply of 36 Rafale fighter aircraft to IAF. The Rafale deal with French aerospace major Dassault had an agreement of 50 per cent offset clause which means that Indian companies, will get businesses of around 74 percent in goods and supply. The company in which Reliance Defence will hold 51 percent stake will develop the technology at their facility at Mihan Special Economic Zone near Nagpur.Anil ...

June 21st, 2017 13:39

Sanjiv Kaul continues multi-bagger pharma returns with Eris' IPO

A few years ago when Ajay Piramal was delivering the keynote address at a conference organised by Venture Intelligence in Mumbai he specifically pointed out to Sanjiv Kaul (who was in the audience amidst many PE-VC professionals) saying that Sanjiv could relate very well to what he was talking about.The chairman of Piramal Group, bought Nicholas Laboratories in 1988, when it was ranked 48th in the domestic market and turned it into third largest company through a series of acquisitions. In 2010, he sold the domestic formulation part of the business to Abbott for $3.8 billion (Rs 17,500 crore), at the most expensive valuation of nine times to sales. He is clearly respected for his ability to build as well as make good return on his investments.Piramal is right on Kaul. With Eris Lifesciences' initial public offering (IPO) getting three times oversubscribed on Tuesday, ChrysCapital has made another multi-bagger exit from its investment in pharma. The home grown PE firm that invested ...

June 21st, 2017 13:12

SBI ETF pips HDFC Equity to become country's largest equity scheme

SBI ETF Nifty 50, an exchange traded fund, has nudged past HDFC Equity to become the largest equity scheme in the country, a position the latter had held for more than three years. SBI ETF Nifty has assets worth Rs 19,377 crore compared with Rs 19,093 crore managed by HDFC Equity, data from Value Research shows. Managed by India's highest-paid fund manager Prashant Jain, HDFC Equity has been around for more than 22 years and has consistently featured among the top five largest equity schemes in the past decade. SBI ETF Nifty 50, on the other hand, was launched less than two years ago, making it perhaps the fastest growing equity fund in the history of the Indian fund industry. SBI ETF has benefited from inflows from Employees' Provident Fund Organisation (EPFO) which has been steadily increasing its allocation to equities. It has also got significant money from a clutch of exempt provident funds, said sources. "Change in EPFO regulation as well as investors' preference towards passive

June 21st, 2017 13:00

India's power, industrial facilities warm up to cyber security systems

Industrial facilities in India, particularly the power sector, are showing early signs of higher demand for cyber security systems as operations increasingly turn digital. Engineering companies say such systems are mostly being provided now as an added service in the operations and maintenance segment."Awareness about cyber security has increased in industries and power utilities in recent years. This has been driven by the increasing integration of information technology and the Internet of Things in an age of connected devices and the energy revolution. While it is still too early to speak about volumes of such opportunities, the way the industry and utilities are moving forward, the range of play will only increase," said Akilur Rahman, chief technology officer at ABB India.Last week, Siemens India said it would provide cyber security solutions for CLP India's power plant automation system. This was not the sole instance. "As you go for digitalisation, as more and more become ...

June 21st, 2017 12:58

Mswipe raises Rs 200 cr from Ratan Tata-backed investor and others

Ratan Tata-backde UC-RNT fund and others have invested around Rs 200 crore into Matrix-backed digital payment technology firm Mswipe Technologies Pvt Ltd. The company will use the funds to develop the largest network of merchants accepting digital payments in the country.UC-RNT fund, a joint venture between Ratan Tata's RNT Associates and the University of California along with existing investors Matrix Partners India, Falcon Edge Capital, and DSG Consumer Partners invested in the round. The company has earlier raised a sum of over $56 million from marquee investors like Falcon Edge Capital, Matrix Capital Partners, DSG Partners and Axis Bank.Mswipe Technologies Private Limited, a POS merchant acquirer and network provider, currently has a payment network of over 2,46,000 terminals spread across over 550 cities. Over 80 per cent of Mswipe's customer base comprises of SME merchants. The annualized value of total transactions enabled by the company across its network stands at Rs 9,560

June 21st, 2017 12:38

Govt sells SUUTI stake in L&T for Rs 4,000 crore

MUMBAI (Reuters) - India sold a 2.5 percent stake in engineering and construction group Larsen & Toubro Ltd (L&T) on Wednesday, raising more than 40 billion rupees ($619.27 million) that will help the government meet its annual fiscal deficit target.

June 21st, 2017 10:22

Raise topline, gain market share: CV makers bullish on fully built vehicles

With more emphasis on safety standards, original equipment maker (OEM) built ready to use commercial vehicles are likely to see traction in the coming years. Manufacturers like Ashok Leyland and Tata Motors expect demand for fully built vehicles (FBVs) to grow as legislation mandating manufacturers to build safer commercial vehicles (including safer cabins for drivers) is in the pipeline. Industry estimate puts the current proportion of fully-built vehicles sold by truck manufacturers at 20 per cent and this is set to grow to 40 per cent or so. Subrata Ray, senior group vice president, ICRA felt that with all the major manufacturers including Tata Motors Ltd (TML), Ashok Leyland Ltd (ALL) focussing on this segment, the share of OEM built FBVs can rise up to 40 per cent of overall industry volumes over the next few years. FBVs are basically ready-to-use commercial vehicles customised for the type of good to be transported."In times to come, OEM fitted FBVs will be the seeking trend by .

June 21st, 2017 09:57

India's fruits, vegetables exports to Qatar rise by 15% in two weeks

India's fresh fruits and vegetables exports to Qatar has jumped by 15 per cent in the last two weeks due to their supply disruptions from Saudi Arabia and its other neighbouring countries following closure of land boundaries.Supply of fresh fruits and vegetables from India to Qatar boosted since early this month after Saudi Arabia, the United Arab Emirates, Egypt, Bahrain and Yemen announced breaking of diplomatic ties and severed land, sea and air access to Doha. Maldives and Libya joined the fray later. Consequently, the importers in Qatar have stepped up their fruits and vegetables supply orders to India.To increase the immediate demand, however, importers in Doha have also started transporting through air to avoid a sharp increase in inflation due to shortage. Many cargo airlines have delivered goods in large quantities to Qatar in the last two weeks.Confirming the development a senior official with Agricultural & Processed Food Products Export Development Authority (Apeda) ...

June 20th, 2017 20:44

Myntra expects to see five-fold jump in sales during upcoming sale

Flipkart-owned online fashion retailer Myntra expects to see a twenty five fold jump in sales during its upcoming three day flagship End of Reason Sale that will be held between June 24 and 26. For its sixth edition of the sale, Myntra says it has lined up a spread of over 10 million products from across 1,800 brands and is offering discounts of up to 80 per cent. The company expects the sale to attract 20 million customers, with over 400,000 of them being first time shoppers on its platform. "EORS gets bigger and better with each passing season and the 6th edition will be the largest yet, along with Jabong's participation. We expect 20 million users to indulge in a shopping spree to pick the finest in fashion at attractive discounts of up to 80% during the three day carnival," said Ananth Narayanan, CEO of Myntra-Jabong, in a statement. Myntra says it is geared to handle four times the traffic on its platform during the period of the sale when compared to any of its baseline days. ..

June 20th, 2017 18:28

Dell, IBM, HP in race to develop world-class data centre in Odisha

Technology solution providers Dell , IBM, HP have evinced interest to develop a world class data centre to be established in Odisha by Software Technology Parks of India (STPI).Apart from these technology firms, engineering company Sterling and Wilson and infrastructure development company IL&FS are also in the race to build the centre." The work of setting up the world class data centre will be completed within 180 days after the finalization of bids", said an STPI official.It will be the first Uptime institute certified commercial data centre which will be fully owned by any government organization. The certification from the institute will guarantee Uptime of 99.982 per cent in the entire life time of the data centre considered as 20 years.The centre will be built at a cost Rs 30 crore within the STPI's own office complex coming up at the outskirts of Bhubaneswar. It will have 120 racks. Sources said, the data centre is designed to withstand the windspeed of 300 kilometers .

June 20th, 2017 18:11

Polyhose acquires Ashok Leyland-John Deere JV facility

Polyhose Group, which has been manufacturing hoses for both Indian and exports market, has acquired the construction equipment manufacturing facility of earstwhile joint venture of commercial vehicle major Ashok Leyland and US-based construction equipment major John Deere, to foray into the segment.The group has a decade lont joint venture with Caterpillar Inc, in Polyhose India (Rubber), apart from some of the Japanese investments in the group companies.The new business would start manufacturing allied products in three to six months, while it would start manufacturing construction equipment in less than a year, said Suryanarayanan, chief financial officer of the company. He refused to reveal the cost of acquisition of the facility, but said that the Group will invest a total of Rs 100-120 crore into the new business. The investment would be from internal accruals and debt, he said.The Rs 700 crore company is in talks with the dealers and has plans to check with its partner ...

June 20th, 2017 17:37