IL&FS RAISES $895 MN FOR SECOND REALTY FUND
Braving a slowdown, IL&FS Investment Managers Limited (IIML), a leading private equity fund manager, on Tuesday announced the closure of its IL&FS India Realty Fund-II (IIRF2) at $895 million, exceeding the target by $145 million.
Hindustan Times
Friday, December 12, 2008
INDIA’S ‘SLOWDOWN’ MAY BE THE WORLD’S ENVY
The world economy may be slowing down to less than 2.5 per cent, but in relative terms the “slowdown” in India would be something the world would envy. Overnight, India has become the second-most powerful engine of global growth, after China.
Even after moderating their GDP growth projections, estimates by economists show that the Indian economy could grow by between 6.3 per cent and 8 per cent, with World Bank and foreign investment banking firms being the pessimists and Indian research organisations and International Monetary Fund the optimists.
India’s economic growth may fall short of Reserve Bank of India’s 7.5-8 per cent forecast. “All indications are that it (GDP forecast) may be revised downwards,” RBI governor D. Subbarao said on Wednesday. He warned 2009-10 could be more painful.
With global trade expected to contract in 2009, the World Bank on Wednesday, in a report titled ‘Global Economic Prospects’, projected that the Indian economy would grow at 5.8 per cent in 2009, down from 6.3 per cent estimated for 2008.
It, however, raised the estimate for 2010 to 7.7 per cent.
“In India, growth slowed across all sectors, with tighter monetary policy, rising inflationary pressures, and mounting fiscal and current account deficits weighing down economic activity,” the report stated.
India’s data keeper, the Centre for Monitoring Indian Economy (CMIE), the most optimistic of the lot, expects the GDP growth to be about 8 per cent for FY 2009. “A combination of these factors (global slowdown, falling commodity prices and falling demand in textiles, automobiles and services) has led to this downward revision,” said Mahesh Vyas, CEO, CMIE.
Commenting on the World Bank projection, Suman K. Bery, director general, National Council of Applied Economic Research -- which has forecast a 7.6 per cent growth -- said, “It implies there’ll be a much steeper recession in the developed countries and global growth will be substantially because of India and China. I think we’ll be fortunate if we’re able to keep a growth rate of 7 per cent for FY 2010, which is unlikely.”
D.K. Joshi, principal economist, CRISIL, said, “We’ve reworked the growth rate to 6.5-7.0 per cent. The economy was already slowing down on account of high interest rates but the global meltdown that came sharply has made matters worse.”
But even these are subject to changing conditions. “Things are very volatile right now and we’ll have to see how they pan out,” said Abheek Barua, chief economist, HDFC Bank, which has forecast a 7.3 per cent growth.
Hindustan Times
The world economy may be slowing down to less than 2.5 per cent, but in relative terms the “slowdown” in India would be something the world would envy. Overnight, India has become the second-most powerful engine of global growth, after China.
Even after moderating their GDP growth projections, estimates by economists show that the Indian economy could grow by between 6.3 per cent and 8 per cent, with World Bank and foreign investment banking firms being the pessimists and Indian research organisations and International Monetary Fund the optimists.
India’s economic growth may fall short of Reserve Bank of India’s 7.5-8 per cent forecast. “All indications are that it (GDP forecast) may be revised downwards,” RBI governor D. Subbarao said on Wednesday. He warned 2009-10 could be more painful.
With global trade expected to contract in 2009, the World Bank on Wednesday, in a report titled ‘Global Economic Prospects’, projected that the Indian economy would grow at 5.8 per cent in 2009, down from 6.3 per cent estimated for 2008.
It, however, raised the estimate for 2010 to 7.7 per cent.
“In India, growth slowed across all sectors, with tighter monetary policy, rising inflationary pressures, and mounting fiscal and current account deficits weighing down economic activity,” the report stated.
India’s data keeper, the Centre for Monitoring Indian Economy (CMIE), the most optimistic of the lot, expects the GDP growth to be about 8 per cent for FY 2009. “A combination of these factors (global slowdown, falling commodity prices and falling demand in textiles, automobiles and services) has led to this downward revision,” said Mahesh Vyas, CEO, CMIE.
Commenting on the World Bank projection, Suman K. Bery, director general, National Council of Applied Economic Research -- which has forecast a 7.6 per cent growth -- said, “It implies there’ll be a much steeper recession in the developed countries and global growth will be substantially because of India and China. I think we’ll be fortunate if we’re able to keep a growth rate of 7 per cent for FY 2010, which is unlikely.”
D.K. Joshi, principal economist, CRISIL, said, “We’ve reworked the growth rate to 6.5-7.0 per cent. The economy was already slowing down on account of high interest rates but the global meltdown that came sharply has made matters worse.”
But even these are subject to changing conditions. “Things are very volatile right now and we’ll have to see how they pan out,” said Abheek Barua, chief economist, HDFC Bank, which has forecast a 7.3 per cent growth.
Hindustan Times
BEST TIME TO HIRE FOR INDIA INC
Even as companies worldwide resort to layoffs or freeze hirings as part of cost-saving measures to counter the economic slowdown, Deloitte Consulting believes the current turbulence actually presents India Inc with its best opportunity to enrol good people in their organisations.
The Economic Times
Even as companies worldwide resort to layoffs or freeze hirings as part of cost-saving measures to counter the economic slowdown, Deloitte Consulting believes the current turbulence actually presents India Inc with its best opportunity to enrol good people in their organisations.
The Economic Times
ARUN SARIN BEING CONSIDERED FOR YAHOO TOP JOB
The former chief executive of Vodafone Group Plc, Arun Sarin, is among those being considered by board members at Yahoo Inc to take the top job at the internet firm.
The Economic Times
The former chief executive of Vodafone Group Plc, Arun Sarin, is among those being considered by board members at Yahoo Inc to take the top job at the internet firm.
The Economic Times
GREEN BUILDINGS TO CHANGE INDIA’S SKYLINE BY 2010
There will be over 1,000 green buildings dotting the Indian skyline by 2010 saving energy and environment. Already 375 buildings are under construction. Indian industry will also be a key player in the $40-billion green building material business in the world. There will be over 50,000 accredited green professionals in the country to make India a leading player in green building business and technologies.
The Financial Express
There will be over 1,000 green buildings dotting the Indian skyline by 2010 saving energy and environment. Already 375 buildings are under construction. Indian industry will also be a key player in the $40-billion green building material business in the world. There will be over 50,000 accredited green professionals in the country to make India a leading player in green building business and technologies.
The Financial Express
GOVT ANNOUNCES STIMULUS PACKAGE, INCLUDING TAX CUTS
The government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.
Livemint
The government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.
Livemint
MORE ISSUANCES LIKELY BY INDIAN CORPORATES AS COSTS FALL
Indian companies are likely to step up their fund-raising plans as borrowing costs ease after the Reserve Bank of India slashed rates over the weekend.
Livemint
Indian companies are likely to step up their fund-raising plans as borrowing costs ease after the Reserve Bank of India slashed rates over the weekend.
Livemint
PRIORITY STATUS TO BOOST HOUSING DEMAND
To facilitate credit flow into the cash-strapped real estate sector, the Reserve Bank of India (RBI) on Saturday announced several measures, including a refinance facility for the National Housing Bank and priority sector status for housing loans up to Rs 20 lakh.
RBI said the loans granted by banks could classify housing loans up to Rs 20 lakh given to house finance companies (HFC) as “priority sector” advances, subject to a ceiling of five per cent of their total priority sector target.
The Hindu Business Line
To facilitate credit flow into the cash-strapped real estate sector, the Reserve Bank of India (RBI) on Saturday announced several measures, including a refinance facility for the National Housing Bank and priority sector status for housing loans up to Rs 20 lakh.
RBI said the loans granted by banks could classify housing loans up to Rs 20 lakh given to house finance companies (HFC) as “priority sector” advances, subject to a ceiling of five per cent of their total priority sector target.
The Hindu Business Line
Saturday, November 29, 2008
INDIAN ECONOMY GROWS BY 7.6% IN Q2
Powered by construction and services, the Indian economy notched a reasonable growth rate of 7% in the second quarter of the current fiscal, but analysts said monetary supply should be further eased to prevent the growth from declining in the remaining quarters.
MINT
Powered by construction and services, the Indian economy notched a reasonable growth rate of 7% in the second quarter of the current fiscal, but analysts said monetary supply should be further eased to prevent the growth from declining in the remaining quarters.
MINT
UNDETERRED I.T. INDUSTRY SAYS IT WON'T BOW DOWN TO TERROR
Shocked at the most terrible terrorist attack in the country, IT companies beefed up security in campuses across cities, including Bangalore, and said the industry will not "bow down to terror".
The IT Industry association Nasscom said, "We will not bow down to terror. As an industry that is international and services customers across the globe, we continue our operations, uninterrupted, from centers across India and even Mumbai."
The Economic Times
Shocked at the most terrible terrorist attack in the country, IT companies beefed up security in campuses across cities, including Bangalore, and said the industry will not "bow down to terror".
The IT Industry association Nasscom said, "We will not bow down to terror. As an industry that is international and services customers across the globe, we continue our operations, uninterrupted, from centers across India and even Mumbai."
The Economic Times
MUMBAI WILL EMERGE STRONGER
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world’s second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top ten centres of commerce and contributes to about 5% of India's GDP and accounts for 25% of the industrial output, 40% of maritime trade, and 70% of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
“Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. “Each time it’s been the target of a terrorist attack, it rebounds stronger and more resolute.”
Post the July 11, 2006 Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1% in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3% at 10,930.09 at the end of the day's trade.
India is set to register a strong growth of about 7.5% this financial year, a marginal drop from 9% that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12% last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40% of foreign trade, 60% of customs duty collections, 40% of income tax collections, 20% of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India, National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies – including the three largest private sector companies Reliance Industries, Tata Group and Aditya Birla Group – and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic Industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center, which will see its role gaining significance once the Indo-U.S. civil nuclear deal comes in to force. Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world’s second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top ten centres of commerce and contributes to about 5% of India's GDP and accounts for 25% of the industrial output, 40% of maritime trade, and 70% of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
“Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. “Each time it’s been the target of a terrorist attack, it rebounds stronger and more resolute.”
Post the July 11, 2006 Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1% in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3% at 10,930.09 at the end of the day's trade.
India is set to register a strong growth of about 7.5% this financial year, a marginal drop from 9% that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12% last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40% of foreign trade, 60% of customs duty collections, 40% of income tax collections, 20% of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India, National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies – including the three largest private sector companies Reliance Industries, Tata Group and Aditya Birla Group – and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic Industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center, which will see its role gaining significance once the Indo-U.S. civil nuclear deal comes in to force. Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
Thursday, November 13, 2008
INDIAN MOBILE TELECOMMUNICATION: AMPLE SCOPE TO ENTER
--- Potential market of 700 million subscribers and $37 billion revenue base by 2012
--- Tata Teleservices - NTT DoCoMo, Swan Telecom – Etisalat and Unitech Telecom – Telenor deals expose Indian Telecom M&A Potential: Deals at $5.8 billion
--- IT and Telecom most consolidating sectors; only sector to cross three digits mark of 100 deals for $6 billion with 21.4% share in M&As worth $28 billion this year to October;
--- IT and Telecom sectors expected to close the year with deals worth $10 billion
The deal by NTT DoCoMo Inc, Japan’s largest mobile telecommunication service provider to pick up 26% stake in Tata Teleservices Ltd, the telecom services arm of India’s largest private sector diversified Tata Group for $2.7 billion exposes the India entry potential for global mobile telecom service providers who do not have on their radar an India entry strategy yet.
Such service providers are missing out on opportunities in a country where incumbent mobile telecommunication service providers collectively add more than nine million subscribers a month and are projected to have overall mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, according to estimates.
The string of investments in Indian telecom companies, including, Tata Teleservices Ltd, the telecommunication services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; or, South Africa’s largest telecom company MTN Group’s attempts to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
“The investments in Tata Teleservices by NTT DoCoMo and the start-up operations of Swan Telecom by Etisalat and Telenor ASA’s in Unitech Telecom exposes the potential for inorganic activity in a market that is otherwise considered to be crowded but has a tele-density of less than 30%, signifying the expected growth potential in the sector.” said Bundeep Singh Rangar, Chairman IndusView Advisors Ltd, the India-focused cross-border advisory firm.
The Tata Teleservices deal will accelerate the telecommunication sector deal activity to $5.8 billion from about $3.1 billion in the deal street that grossed more than $28 billion this year to October.
Opportunities Exist
Other international telecom service providers seeking an
Such growth trends bring with it corresponding increase in investments as government estimates suggest that the overall telecommunication sector will need $73 billion over the next five years to achieve a tele-density of up to 45%. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
It becomes significant as the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; Loop Telecom, a BPL Mobile Communications group company; S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd; among others which are likely targets – but within the regulatory purview of the overseas entity’s stake in the domestic company not to exceed 74%.
“MTN Group, South Africa’s largest mobile service provider with operations in 21 countries is another service provider waiting in the pit-lane to move in to India after its attempts to do so failed on two earlier occasions with leading Indian telecom service providers Bharti Airtel Ltd on the first count, followed by Reliance Communication, which could have been the largest emerging markets telecoms merger worth more than $65 billion.” added RangarOther large mobile telecom deal this year included Idea Cellular Ltd, the telecom business of the diversified Aditya Birla Group, acquiring 40% stake in Spice Communications Ltd, a regional cellular services provider for $675 million.
Information Technology (IT) and Telecom: Deals Despite the Downturn
Taking a collective view of the inorganic growth activity in the technology driven businesses, Information Technology (IT) & IT enabled Services (ITeS) and Telecommunication together account for deals worth about $6 billion emerging as the most consolidating sectors crossing the three digit mark of 100 deals with 21% share in M&As worth $28 billion to October this year.
Some of the large deals in the sector so far include:
§ The acquisition of Citigroup's captive Business Process Outsourcing (BPO) arm Citigroup Global Services (CGSL) for $505 million by
§ WNS Holdings acquisition of Aviva Global services for $228 million,
§ Quatrro BPO Solutions buying a majority stake in the U.K.-based Babel Media for $110 million, and
§ Essar-owned Aegis BPO buying Nasdaq-listed People Support for $250 million
§ ITeS company CBay Systems bought 69.50% stake in MedQuist Inc. for $287 million.
In fact the pending purchase of Axon Group Plc, the U.K.-based provider of SAP implementation consulting, by HCL Technologies Ltd for $814 million after it rivalled the bid of its larger competitor and second largest IT services company Infosys Technologies Ltd, will give the IT and Telecom sector top slot in the sectoral ranking of the merger and acquisition (M&A) table with deal value exceeding $10 billion (including the Tata Teleservices deal).
The other deal in the making is that of Tata Consultancy Services’, India’s largest software services exporter, expected acquisition of Europe's largest engineering conglomerate Siemens AG’s IT Solutions and Services (SIS) unit.
Tuesday, November 04, 2008
INDIAN AMERICANS FAVOUR OBAMA
An overwhelming 81% Indian-Americans will vote for Democratic presidential nominee Senator Barack Obama while merely 19% will support the Republican nominee Senator John McCain, an opinion poll suggests.
MINT
An overwhelming 81% Indian-Americans will vote for Democratic presidential nominee Senator Barack Obama while merely 19% will support the Republican nominee Senator John McCain, an opinion poll suggests.
MINT
BHARTI AIMS Rs 1,000 CR TURNOVER FROM RETAIL BIZ BY MARCH '09
Sunil Mittal-promoted Bharti Enterprises on Monday said it is eyeing a turnover of Rs 1,000 crore from its retail operations by the end of current fiscal in March 2009 and added that the current economic slowdown will not impact it.
The Economic Times
Sunil Mittal-promoted Bharti Enterprises on Monday said it is eyeing a turnover of Rs 1,000 crore from its retail operations by the end of current fiscal in March 2009 and added that the current economic slowdown will not impact it.
The Economic Times
VOLKSWAGEN TO SOURCE 1 BN EURO AUTO COMPONENTS FROM INDIA
German auto major Volkswagen AG is embarking on an auto component sourcing drive from India, which will see the company ordering materials worth one billion euro for its global operations, within the next two years.
The Economic Times
German auto major Volkswagen AG is embarking on an auto component sourcing drive from India, which will see the company ordering materials worth one billion euro for its global operations, within the next two years.
The Economic Times
CONTACT CENTRES ON HIRING MODE TO MEET POST-FESTIVE CALLS
Despite being cautious of the holiday season consumer spending in the US, Indian contact centres have stepped up temporary hiring to meet an expected surge in volumes over the next two to three months.
The Hindu Business Line
Despite being cautious of the holiday season consumer spending in the US, Indian contact centres have stepped up temporary hiring to meet an expected surge in volumes over the next two to three months.
The Hindu Business Line
INDIAN MARKET BETTER OFF THAN ASIAN PEERS, BRIC
Even though bears have minced domestic markets considerably, has the decline in commodity or energy prices helped the domestic stock market perform better than its Asian peers and other BRIC constituents? While crude prices tumbled by around 60% since its July 11 peak and a 40-50 % correction has set in metals and agro-commodities, the Indian stock market has fallen by 27% from mid-July - which is much less than its Asian and BRIC peers, analysis shows. Equity markets in other comparable Asian countries such as Korea (-29 %), Taiwan (-32 %), Japan (-35 %), Hong Kong (-37 %) and Singapore (-39 %) have sharply fallen even as the commodities' tide turned.
The Economic Times
Even though bears have minced domestic markets considerably, has the decline in commodity or energy prices helped the domestic stock market perform better than its Asian peers and other BRIC constituents? While crude prices tumbled by around 60% since its July 11 peak and a 40-50 % correction has set in metals and agro-commodities, the Indian stock market has fallen by 27% from mid-July - which is much less than its Asian and BRIC peers, analysis shows. Equity markets in other comparable Asian countries such as Korea (-29 %), Taiwan (-32 %), Japan (-35 %), Hong Kong (-37 %) and Singapore (-39 %) have sharply fallen even as the commodities' tide turned.
The Economic Times
Friday, October 31, 2008
NORWAY'S TELENOR BUYS UNITECH'S TELECOM FIRM
Norway-based Telenor, the world’s seventh largest telecom operator with a subscriber base of about 159 million, has bought new-generation telecom company Unitech Wireless by paying Rs 6,120 crore for a 60 per cent stake. The deal puts the enterprise value of the company, which holds a licence for 22 circles and is yet to roll out its services, at Rs 11,620 crore.
Business Standard
Norway-based Telenor, the world’s seventh largest telecom operator with a subscriber base of about 159 million, has bought new-generation telecom company Unitech Wireless by paying Rs 6,120 crore for a 60 per cent stake. The deal puts the enterprise value of the company, which holds a licence for 22 circles and is yet to roll out its services, at Rs 11,620 crore.
Business Standard
Friday, October 10, 2008
First Three Quarters Of Indian M&As Top $26 Billion
--- Cash rich Indian companies’ overseas acquisitions worth $14 billion outpace their global counterparts that made acquisitions worth $8 billion in
--- Infrastructure Sector Dominates Deal Street with transactions worth $12 Billion
--- Power, Oil & Gas top grosser with merger & acquisitions (M&As) worth $5 billion; Ninth India-EU Summit sets ground for future deals in Nuclear Energy
--- Banking & Financial Services and Pharmaceutical sectors follow with M&A deal values of more than $3 billion each
--- Overall M&As highlight the India-Europe corridor that witnessed 52% share in total cross-border deals worth $22 billion
The acquisition of Citigroup's captive Business Process Outsourcing (BPO) arm Citigroup Global Services (CGSL) for $505 million by India’s largest IT services exporter Tata Consultancy Services - the largest buyout of a foreign captive BPO in India; the acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s ONGC Videsh Ltd, a subsidiary of India’s biggest explorer Oil & Natural Gas Corporation (ONGC) Ltd for $2.8 billion; the pending purchase of Axon Group Plc, the U.K.-based provider of SAP implementation consulting, that has invited rival bids from India’s second largest IT services company Infosys Technologies Ltd and HCL Technologies Ltd., are all manifestations of an M&A binge fueled by large cash reserves held by Indian companies.
Indian companies with a war chest of cash reserves, such as Infosys Technologies Ltd, India’s second largest IT services company, with reserves of about $2 billion; ONGC Ltd with similar reserves; Tata Sons, the holding company for all Tata Group’s investments, with reserves and surplus of more than $2.5 billion, among others, have become active acquirers in the market. This has happened as the US Standard & Poor's 500 Index has tumbled 33 percent in its worst yearly slump since 1937.
Infrastructure Dominates
Infrastructure-related industries dominated mergers and acquisitions (M&As), accounting for 45% of the deals at more than $11.8 billion of the total deal value of $26 billion this year to September.
“The traction in the infrastructure M&As is symbolic of the need for world class facilities, adoption of internationally applicable best practices, experienced global management expertise & technology applications to accelerate growth in the Indian economy. To get that resource base of incremental funds and expertise, part of the capital is expected to find its way in to mergers & acquisitions (M&As).” says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd, Europe’s fastest-growing Indian mergers and acquisitions firm.
The Indian government has responded to an urgent demand for new infrastructure targeting to spend 9% of the country’s GDP on infrastructure by 2012. Estimates suggest that a third of this investment will come from the private sector, presenting an unprecedented investment opportunity, with corresponding inorganic activity.
“The focus towards the sector is buoyed by the urgency to match global standards. This augmentation is expected to cost and attract investments to the tune of $500 billion over the next five years.” added Rangar
The power sector has been the main stay of the M&As this year within the infrastructure sector, which accounted for $5 billion, or 42% of the deal value in the infrastructure sector. The power sector commanded 19% share in the total M&A value of $26 billion this year compared with about $4 billion last year representing a 7.4% share of the total deal value of $51 billion.
The power sector witnessed two deals worth more than $1 billion – acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s state owned oil company ONGC Videsh Ltd, subsidiary of Oil & Natural Gas Corporation (ONGC) Ltd for $2.8 billion; and the acquisition of InterGen NV, a Dutch power company by Indian infrastructure company, GMR Infrastructure Ltd.
“The recently concluded ninth India-European Union summit in Marseille, France is expected to further accelerate the M&A activity in the power sector as it’s focus turned towards the potential of nuclear energy to the growth in trade between the two regions, which is targeted to reach €100 billion ($140 billion) over the next five years.” added Rangar
Among the infrastructure sectors, the power sector was followed by telecommunication sector that emerged the second most consolidating sector with $3.75 billion, a share of 32% in the infrastructure sector deal value and 14% share in the overall M&A deal value.
The other sectors which have significantly contributed to the M&A activity are Banking & Financial Services and Pharmaceutical sectors with M&A deal values of more than $3 billion each. These sectors were followed by the Automotive Sector with deal value of about $2.5 billion.
Some of the big ticket deals during the year to September included, the acquisition of
· The
· Jaguar and Land Rover, the
· Tokyo-based pharmaceutical company Daiichi Sankyo Company Limited’s acquisition of Ranbaxy Laboratories Ltd,
· HDFC Bank Ltd, one of
· Investment $2 billion in Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Italy-based Telecom Italia SpA
Cross Border Deals
“Significant aspect of the M&A activity has been India Inc.’s eyes on global opportunities, which have become more prominent in the backdrop of the global recession.” explains Rangar
India Inc.’s overseas acquisitions (outbound) worth about $13.8 billion, outnumbering the value of acquisitions made by overseas companies in
Four of the big ticket overseas deals by Indian companies were in
Trade between
The
“Indian companies with their acquisitions of companies in the U.K. are increasingly seeking to harness the size and scale of global operations on one hand and unlock the potential in emerging economies on the other, exhibited by the acquisition of Jaguar and Land Rover, the U.K. based iconic marquees of the U.S.-based Ford Motor Company by Tata Motors Ltd; and the acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s state owned oil company ONGC Videsh Ltd, subsidiary of Oil & Natural Gas Corporation (ONGC) Ltd.” said Rangar
The
TATA CONSULTANCY TO BUY CITI ARM FOR $505 MN
Notwithstanding the crisis in the global financial system, leading Indian information technology major Tata Consultancy Services (TCS) on Wednesday said it will buy the outsourcing arm of Citigroup for $505 million. In addition to the acquisition, TCS has entered into a $2.5 billion pact with US-headquartered Citigroup to provide outsourced services for a period of nine-and-a-half years
Hindustan Times
Notwithstanding the crisis in the global financial system, leading Indian information technology major Tata Consultancy Services (TCS) on Wednesday said it will buy the outsourcing arm of Citigroup for $505 million. In addition to the acquisition, TCS has entered into a $2.5 billion pact with US-headquartered Citigroup to provide outsourced services for a period of nine-and-a-half years
Hindustan Times
Saturday, October 04, 2008
TELECOM ITALIA BUYS 49% IN UNITECH'S TELECOM ARM
Telecom Italia has piped Norway’s Telenor to acquire 49% stake in Unitech’s telecom arm. A top Unitech executive confirmed that the two firms are close to reaching an agreement whereby Unitech’s telecom business will be transferred to a new company in which Telecom Italia will invest $2 billion for 49% stake. The majority 51% in the joint venture company will be held by Unitech.
The Economic Times
Telecom Italia has piped Norway’s Telenor to acquire 49% stake in Unitech’s telecom arm. A top Unitech executive confirmed that the two firms are close to reaching an agreement whereby Unitech’s telecom business will be transferred to a new company in which Telecom Italia will invest $2 billion for 49% stake. The majority 51% in the joint venture company will be held by Unitech.
The Economic Times
ETISALAT BUYS 45% IN SWAN TELE FOR $900 MLN
Emirates Telecommunications Corporation (Etisalat) has signed a definitive agreement to acquire approximately 45 per cent of Swan Telecom Private Ltd, one of the companies which had recently got the licence for offering mobile services. Etisalat will pay $900 million for the stake, implying an enterprise value of $2 billion. Swan Telecom holds Universal Access Service Licences in 13 telecom service areas in India, and is in the process of acquiring licences in an additional two telecom service areas.
The Hindu BusinessLine
Emirates Telecommunications Corporation (Etisalat) has signed a definitive agreement to acquire approximately 45 per cent of Swan Telecom Private Ltd, one of the companies which had recently got the licence for offering mobile services. Etisalat will pay $900 million for the stake, implying an enterprise value of $2 billion. Swan Telecom holds Universal Access Service Licences in 13 telecom service areas in India, and is in the process of acquiring licences in an additional two telecom service areas.
The Hindu BusinessLine
Thursday, October 02, 2008
NINTH INDIA-EU SUMMIT: €100 BILLION OPPORTUNITY
--- Nuclear Energy Assumes Focus at This Year’s India-EU Summit
--- France Takes Lead By Inking Civil Nuclear Cooperation Agreement: Sets ground for €20 Billion Worth of Contracts Over 15 Years
Ninth India-European Union summit in Marseille, France highlighted the growing trade between the two regions, which is set to reach €100 billion ($140 billion) in two-way trade value over the next five years.
Discussions on harnessing nuclear energy took centre stage at the summit against a backdrop of the increasing oil prices and India’s concern with a deficit in power generation from conventional sources.
“There is compelling need for the two economies to come closer and explore joint initiatives for mutual advantage, increased energy production and relaxation of infrastructure bottlenecks,” says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd, Europe’s fastest-growing Indian mergers and acquisitions firm.
The India-EU summit brings together a region that generates an estimated 30% share of the world's GDP at $16.8 trillion on one hand and on the other, the world’s second fastest growing economy and the EU’s largest emerging markets trade partner grossing $80 billion in trade.
Trade between India and the 27-nation European Union has more than doubled to €55.6 billion ($80 billion) last year from €25.6 billion ($36.7 billion) in 2000. The participation of European companies in building India’s power generation capacity will help achieve the €100 billion ($140 billion) trade target by 2013 set at the India-European Union Summit.
Opportunity Defined
India’s power deficit entails an estimated investment of up to $250 billion by 2012, significantly more than the $44 billion investment the sector has received during the first six months of the current year. To meet the growing demand, the government plans to add 78.57GW over the same period to its existing generation capacity of 140GW. Of the planned augmentation, only 7.26GW has been commissioned. The slow pace of development due to technology and resource constraints calls for investments estimated at $80 billion over the next five years across alternate energy sources such as wind, solar and nuclear energy.
India will become a lucrative market for nuclear energy equipment makers as soon as The United States-India Peaceful Atomic Energy Cooperation Act of 2006 between India and the U.S. gets officially implemented.
Nuclear energy makes up only 3% of total installed capacity in India and its domestic uranium reserves are also limited. India’s Atomic Energy Commission estimates that domestic resources could support only 10 GW of installed nuclear capacity, signifying the potential of a multifold ramp-up.
In mid-2008, Indian nuclear power plants were running at about half their capacity due to a chronic shortage of fuel, according to the World Nuclear Association, an industry body. That situation was expected to persist for several years if the civil nuclear agreement had not been reached. India plans to raise its nuclear capacity 10 times from the present 3GW to 30GW by 2022.
“India-European Union civil nuclear energy cooperation will pave the way for new joint ventures, civil nuclear research and development initiatives and technology sharing arrangements as India looks to combine foreign and homegrown expertise.”
“As India plans to build eight new civil nuclear energy plants, it provides a ready market for global power producers in search of friendly investment destinations.” adds Rangar.
The Beneficiaries
India and France have been exploring such avenues and indicated willingness to share future technology to develop civilian nuclear energy. The two countries took the lead by inking a landmark agreement on civil nuclear cooperation. The agreement will pave the way for French companies such as Areva SA, Alstom SA and Électricité de France (EDF) to win contracts worth €20 billion over 15 years.
Areva has been committed to developing India’s civil nuclear energy initiative for sometime now. That was symbolized by the visit of Anne Lauvergeon, Chairperson of the executive board of Paris-based Areva SA, the world's largest manufacturer of nuclear reactors in January this year along with the French President Nicolas Sarkozy, during his state visit. This was Anne’s second visit to India in less than two years.
Other companies vying to enter India’s nuclear energy market include General Electric Co., the world's second-largest company by market value, Russia's state-owned nuclear company Rosatom State Nuclear Energy Corporation and Toshiba Corp., a diversified Japanese conglomerate, among others.
With the civil nuclear energy corporation agreements coming in to force various Indian companies have shown interest in this field of energy generation, such as Tata Group, Reliance Power Ltd, GMR Infrastructure Ltd, GVK Industries Ltd and state run National Thermal Power Corp. Ltd.
Other Indian companies that will stand to gain are suppliers and builders, such as Hindustan Construction Co. Ltd, Bharat Heavy Electricals Ltd, Larsen and Toubro Ltd, Gammon India Ltd and Godrej & Boyce Manufacturing Co. Ltd.
Merger & Acquisition Deals
Merger & Acquisitions (M&As) in the power sector having accounted for $5 billion, or 19%, of total M&A value of $26 billion this year compared with about $4 billion last year representing a 7.4% share of the total deal value of $51 billion.
The sector witnessed two deals worth more than $1 billion, that of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s state owned oil company ONGC Videsh Ltd, subsidiary of Oil & Natural Gas Corporation (ONGC) Ltd for $2.8 billion; and the acquisition of InterGen NV, a Dutch power company by Indian infrastructure company, GMR Infrastructure Ltd.
INDIA, EU TO COOPERATE IN R&D IN NUCLEAR AND FUSION ENERGY
India and EU decided to co-operate in civil nuclear research and development and enhance exchanges in the field of fusion energy research. The two sides agreed to cooperate in "civil nuclear research and development in a manner consistent with their international obligations," the India-EU Joint Action Plan issued at the end of the ninth India-European Union Summit..
The Economic Times
India and EU decided to co-operate in civil nuclear research and development and enhance exchanges in the field of fusion energy research. The two sides agreed to cooperate in "civil nuclear research and development in a manner consistent with their international obligations," the India-EU Joint Action Plan issued at the end of the ninth India-European Union Summit..
The Economic Times
INFY MAY TOP HCL AXON BID
Infosys is likely to make a one-time move to match or surpass HCL’s offer to acquire London-headquartered SAP consulting firm Axon, but would guard itself from entering into an expensive bidding war..
Indiatimes - Infotech
Infosys is likely to make a one-time move to match or surpass HCL’s offer to acquire London-headquartered SAP consulting firm Axon, but would guard itself from entering into an expensive bidding war..
Indiatimes - Infotech
Sunday, September 21, 2008
IT’S A WRAP: ADAG, SPIELBERG DEAL DONE
Anil Ambani group’s Reliance Entertainment and DreamWorks SKG of acclaimed director Steven Spielberg have completed the much-talked about deal for jointly making Hollywood films.
The Indian Express
Anil Ambani group’s Reliance Entertainment and DreamWorks SKG of acclaimed director Steven Spielberg have completed the much-talked about deal for jointly making Hollywood films.
The Indian Express
WALL STREET JOB LOSSES MAY BE ASIA'S GAIN
Within hours of Bank of America agreeing to buy Merrill Lynch this week, Indian financial services firm Ambit hired five Merrill executives, a sign that Asia hopes to gain from massive Wall Street layoffs.
The Economic Times
Within hours of Bank of America agreeing to buy Merrill Lynch this week, Indian financial services firm Ambit hired five Merrill executives, a sign that Asia hopes to gain from massive Wall Street layoffs.
The Economic Times
INDIAN BANKS IN BETTER SHAPE THAN GLOBAL PEERS
Indian banks appear to be headed for better profits this quarter in sharp contrast to banks in the West which are issuing profit warnings amidst massive writedowns. Most banks in India are likely to show better profits for the quarter ending September compared with the previous quarter (June 2008).
The Economic Times
Indian banks appear to be headed for better profits this quarter in sharp contrast to banks in the West which are issuing profit warnings amidst massive writedowns. Most banks in India are likely to show better profits for the quarter ending September compared with the previous quarter (June 2008).
The Economic Times
SEBI, RBI PANEL ON M&As
Capital market regulator Securities and Exchange Board Of India (Sebi) and banking sector regulator Reserve Bank of India (RBI) are planning to set up a joint committee to look into the issues related to mergers and acquisitions (M&As) in the corporate sector...
Sebi has decided to bring down the number of days for rights issues of companies to 43 days from the current 109 days.
Business Standard
Capital market regulator Securities and Exchange Board Of India (Sebi) and banking sector regulator Reserve Bank of India (RBI) are planning to set up a joint committee to look into the issues related to mergers and acquisitions (M&As) in the corporate sector...
Sebi has decided to bring down the number of days for rights issues of companies to 43 days from the current 109 days.
Business Standard
WHAT SLOWDOWN? INDIA NO 1 HIRING DESTINATION
India ranks at the top amongst 33 countries with most favourable fourth-quarter hiring plans. It is followed by Costa Rica, Peru, Singapore, Taiwan, Colombia, Romania, Poland, Argentina, Australia and South Africa, all of which have reported a positive employment outlook...
The Economic Times
India ranks at the top amongst 33 countries with most favourable fourth-quarter hiring plans. It is followed by Costa Rica, Peru, Singapore, Taiwan, Colombia, Romania, Poland, Argentina, Australia and South Africa, all of which have reported a positive employment outlook...
The Economic Times
Tuesday, September 09, 2008
DEAL DONE, NOW FOR THE DEALS
From steam turbines to high-technology reactors, India’s power sector companies are set to reap a bonanza after the government, last weekend, won backing of the 45-nation Nuclear Suppliers Group to trade in atomic fuel and technology in the global market.
Companies like BHEL, NTPC, Tata Power and Larsen and Toubro are eyeing a raft of high-value contracts and joint ventures, the promise of which fuelled a stock rally on Monday. The Bombay Stock Exchange’s 30-share Sensex rose 461 points, or 3.2 per cent, on the back of a surge in stocks of power and equipment manufacturing companies.
Hindustan Times
From steam turbines to high-technology reactors, India’s power sector companies are set to reap a bonanza after the government, last weekend, won backing of the 45-nation Nuclear Suppliers Group to trade in atomic fuel and technology in the global market.
Companies like BHEL, NTPC, Tata Power and Larsen and Toubro are eyeing a raft of high-value contracts and joint ventures, the promise of which fuelled a stock rally on Monday. The Bombay Stock Exchange’s 30-share Sensex rose 461 points, or 3.2 per cent, on the back of a surge in stocks of power and equipment manufacturing companies.
Hindustan Times
HCL TO COUNTER INFOSYS' BID FOR UK FIRM AXON
India Inc’s biggest overseas acquisition in the software space might just grow bigger as HCL Technologies is learnt to be offering 15% over and above Infosys’ bid for the UK-based SAP consultant Axon.
The Economic Times
India Inc’s biggest overseas acquisition in the software space might just grow bigger as HCL Technologies is learnt to be offering 15% over and above Infosys’ bid for the UK-based SAP consultant Axon.
The Economic Times
Sunday, September 07, 2008
NSG WAIVER TO OPEN NUCLEAR COMMERCE WITH SEVERAL COUNTRIES
Welcoming the NSG waiver, former National Security Advisor Brajesh Mishra today said it would open nuclear commerce with several countries and also strengthen Indo-US ties.
One, it opens up nuclear commerce with so many countries which has been prohibited since the last few decades ... Second, it brings India and US close to each other ...
The Economic Times
Welcoming the NSG waiver, former National Security Advisor Brajesh Mishra today said it would open nuclear commerce with several countries and also strengthen Indo-US ties.
One, it opens up nuclear commerce with so many countries which has been prohibited since the last few decades ... Second, it brings India and US close to each other ...
The Economic Times
NUCLEAR SUPPLIERS CLEAR LANDMARK US-INDIA DEAL
The United States finally persuaded supplier nations Saturday to lift a 34-year-old embargo on nuclear trade with India, following weeks of tough negotiations. The US described the breakthrough on the third consecutive day of talks as an "historic" and "landmark" deal that would boost nuclear non-proliferation, while enabling India to meet its huge needs with low-polluting energy.
India called the agreement an "important step" in normalising its relations with the rest of the world that would help meet the challenge of climate change and sustainable development. The Nuclear Suppliers Group (NSG), which controls the export and sale of nuclear technology, reached consensus on a one-off waiver of its rules for India, which refuses to sign the Non-Proliferation Treaty.
AFP
The United States finally persuaded supplier nations Saturday to lift a 34-year-old embargo on nuclear trade with India, following weeks of tough negotiations. The US described the breakthrough on the third consecutive day of talks as an "historic" and "landmark" deal that would boost nuclear non-proliferation, while enabling India to meet its huge needs with low-polluting energy.
India called the agreement an "important step" in normalising its relations with the rest of the world that would help meet the challenge of climate change and sustainable development. The Nuclear Suppliers Group (NSG), which controls the export and sale of nuclear technology, reached consensus on a one-off waiver of its rules for India, which refuses to sign the Non-Proliferation Treaty.
AFP
Wednesday, September 03, 2008
BRAND POWER: RIL KING OF BRANDS AT $6.8 BN
India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-Ã -vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-Ã -vis $5.8-billion in end-2006.
The Economic Times
India’s trillion-dollar plus stock markets boast of 20 companies with a brand value of over $1 billion, up from 16 last year. There are now a dozen (BSE-listed) companies with a brand value over $2 billion (vis-Ã -vis nine last year) and half-a-dozen with over $3 billion (up from four last year). Raise the cut-off to $6 billion, and it’s a club-of-one, India’s biggest private-sector company, Reliance Industries, with an end-2007 brand value of $6.81 billion (Rs 26,801 crore) vis-Ã -vis $5.8-billion in end-2006.
The Economic Times
OVL GETS RED CARPET FROM IMPERIAL FOR 61.9% STAKE
ONGC Videsh (OVL), the foreign investment arm of the country’s largest exploration company, ONGC, on Tuesday put in a formal bid to acquire UK-based oil firm Imperial Energy at 1,250 pence per share. Imperial Energy, with assets in the Russian Federation and CIS countries, is valued at $2.58 billion at the bid price.
The Economic Times
ONGC Videsh (OVL), the foreign investment arm of the country’s largest exploration company, ONGC, on Tuesday put in a formal bid to acquire UK-based oil firm Imperial Energy at 1,250 pence per share. Imperial Energy, with assets in the Russian Federation and CIS countries, is valued at $2.58 billion at the bid price.
The Economic Times
PE RUSH SEEN LIFTING VALUATIONS
The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark.
The Financial Express
The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark.
The Financial Express
Tuesday, August 26, 2008
AIMING GLOBAL, INFOSYS BUYS UK CO IN MEGA-DEAL
After pharma, auto and steel companies, now it’s the turn of Indian infotech companies to go for mega acquisitions abroad. In probably the largest overseas acquisition by an Indian infotech company, Infosys Technologies, India’s No 2 software services exporter, has agreed to buy UK-based consultancy services firm Axon Group Plc in an all-cash deal valued at Rs 3,310 crore (around £407.1 million, or $753.1 million).
The Indian Express
After pharma, auto and steel companies, now it’s the turn of Indian infotech companies to go for mega acquisitions abroad. In probably the largest overseas acquisition by an Indian infotech company, Infosys Technologies, India’s No 2 software services exporter, has agreed to buy UK-based consultancy services firm Axon Group Plc in an all-cash deal valued at Rs 3,310 crore (around £407.1 million, or $753.1 million).
The Indian Express
Monday, August 25, 2008
PRIVATE EQUITY MAKES INROADS IN INDIA
Private equity is gaining greater acceptance in India where rising borrowing costs and a tanking stock market have shut down other means of funding, forcing family-owned businesses to tap a source they had once shunned.
The Financial Express
Private equity is gaining greater acceptance in India where rising borrowing costs and a tanking stock market have shut down other means of funding, forcing family-owned businesses to tap a source they had once shunned.
The Financial Express
ANIL AMBANI's PAY PACKET FATTENS SIX-FOLD
Consumers may be reeling under an inflation of close to 13 per cent, but it should not be a cause of concern for India's second richest person Anil Ambani, whose pay package has grown by close to six times over past fiscal.
The Financial Express
Consumers may be reeling under an inflation of close to 13 per cent, but it should not be a cause of concern for India's second richest person Anil Ambani, whose pay package has grown by close to six times over past fiscal.
The Financial Express
INDIAN FIRMS RUSH TO AIM AS DOMESTIC FLOATS HIT SHELF
Indian firms are tapping London’s Alternative Investment Market, or AIM, to raise funds as the domestic market for initial public offerings, or IPOs, has dried up for lack of investor appetite for new stock sales and dipping valuations of listed companies.
MINT
Indian firms are tapping London’s Alternative Investment Market, or AIM, to raise funds as the domestic market for initial public offerings, or IPOs, has dried up for lack of investor appetite for new stock sales and dipping valuations of listed companies.
MINT
FIIs BETTING ON INDIA AS AN OIL HEDGE
Some foreign institutional investors, or FIIs, the largest investor class in the Indian market, could start reallocating capital here as they bet on further meltdown in crude oil prices, even as several equity strategists at large global brokerages appear to be reaching a consensus on the merits of such bets.
MINT
Some foreign institutional investors, or FIIs, the largest investor class in the Indian market, could start reallocating capital here as they bet on further meltdown in crude oil prices, even as several equity strategists at large global brokerages appear to be reaching a consensus on the merits of such bets.
MINT
PEs ZEROING IN ON DISTRESSED FIRMS
Private equity(PE) firms who have been largely focused on providing growth capital in India are now eyeing distressed firms, which has been a domain of the Asset Reconstruction Companies (ARCs). While some of the PE players such as Vision Global, Eight Capital and ClearWater have specialised funds, which are targeting distressed assets, other PE firms are also looking to invest in such companies during these troubled times.
The Economic Times
Private equity(PE) firms who have been largely focused on providing growth capital in India are now eyeing distressed firms, which has been a domain of the Asset Reconstruction Companies (ARCs). While some of the PE players such as Vision Global, Eight Capital and ClearWater have specialised funds, which are targeting distressed assets, other PE firms are also looking to invest in such companies during these troubled times.
The Economic Times
INDIAN-ORIGIN NISHITA SHAH AMONG NEXT GEN BILLIONAIRES
Nishita Shah, 28, an Indian origin businesswoman from Thailand, golfer Tiger Woods and Elon Musk, co-founder of online payment processor PayPal figure on Forbes’ list of next-generation billionaires. Besides Shah, managing director of Thailand's diversified GP Group, on the list are Hollywood actor Tyler Perry, Kenji Kasahara, creator of Japan's leading portal Mixi, and Michael and Xochi Birch, who started Bebo, a social networking site.
The Times of India
Nishita Shah, 28, an Indian origin businesswoman from Thailand, golfer Tiger Woods and Elon Musk, co-founder of online payment processor PayPal figure on Forbes’ list of next-generation billionaires. Besides Shah, managing director of Thailand's diversified GP Group, on the list are Hollywood actor Tyler Perry, Kenji Kasahara, creator of Japan's leading portal Mixi, and Michael and Xochi Birch, who started Bebo, a social networking site.
The Times of India
Monday, August 18, 2008
FDI IN Q1 FY 09 EXCEEDS TOTAL INFLOWS IN 2005-06
India is fast catching up with China in the flow of Foreign Direct Investment as it crossed $10 billion in the first quarter of this fiscal. Foreign Direct Investment (FDI) in the first quarter of FY 09 has far exceeded the total FDIs flows received by the domestic economy in the financial year 2005-06, Reserve Bank data said.
MINT
India is fast catching up with China in the flow of Foreign Direct Investment as it crossed $10 billion in the first quarter of this fiscal. Foreign Direct Investment (FDI) in the first quarter of FY 09 has far exceeded the total FDIs flows received by the domestic economy in the financial year 2005-06, Reserve Bank data said.
MINT
INFOSYS STICKS TO HIRING TARGET OF 25,000 THIS FISCAL
At a time when many companies are cutting down on their new recruits due to global slowdown, IT bellwether Infosys Technologies has decided to stick to its hiring target 25,000 people in the current financial year.
Press Trust of India
At a time when many companies are cutting down on their new recruits due to global slowdown, IT bellwether Infosys Technologies has decided to stick to its hiring target 25,000 people in the current financial year.
Press Trust of India
INFOSYS PLANS CONSORTIUM TO NURTURE TALENT
In an effort to address the shortage of skilled workforce, leading software exporter Infosys is looking to form a consortium along with other top five Indian IT hirers to nurture talent in engineering colleges.
TimesNow TV
In an effort to address the shortage of skilled workforce, leading software exporter Infosys is looking to form a consortium along with other top five Indian IT hirers to nurture talent in engineering colleges.
TimesNow TV
TESCO TIES UP WITH TATA, TO INVEST $115 MN
UK's largest retailer Tesco Plc on Tuesday announced plans to enter the wholesale cash-and-carry business in India with an initial investment of up to 60 million pounds in the first two years. The company has also entered into an exclusive franchise agreement with Tata group's retail venture Trent, which will help in driving the latter's hypermarket format Star Bazaar.
The Financial Express
UK's largest retailer Tesco Plc on Tuesday announced plans to enter the wholesale cash-and-carry business in India with an initial investment of up to 60 million pounds in the first two years. The company has also entered into an exclusive franchise agreement with Tata group's retail venture Trent, which will help in driving the latter's hypermarket format Star Bazaar.
The Financial Express
FDI IN REAL ESTATE MAY TOUCH $25 BN IN 10 YEARS
Foreign direct investment in the country's real estate sector is likely to rise to a whopping $25 billion in the next 10 years from the present $4 billion, even as the industry faces a slowdown in the short term due to rising interest rates...
The Economic Times
Foreign direct investment in the country's real estate sector is likely to rise to a whopping $25 billion in the next 10 years from the present $4 billion, even as the industry faces a slowdown in the short term due to rising interest rates...
The Economic Times
TATA STEEL STORMS INTO FORTUNE 500
Tata Steel has made its maiden entry into the list of Global 500 Companies released by the Fortune magazine. Based on the consolidated 9-month financial results, Fortune magazine ranked Tata Steel at 315th place.
The Economic Times
Tata Steel has made its maiden entry into the list of Global 500 Companies released by the Fortune magazine. Based on the consolidated 9-month financial results, Fortune magazine ranked Tata Steel at 315th place.
The Economic Times
UK'S BOOTS TIES UP WITH RELIANCE RETAIL
World’s leading pharma and beauty retailer, Boots Company, has signed a Bharti-Wal-Mart type agreement with Reliance Retail (RRL) to enter India’s health and wellness market. The two have decided to get into an equal joint venture for wholesale business and plan to operate front-end stores through a franchisee agreement.
The Economic Times
World’s leading pharma and beauty retailer, Boots Company, has signed a Bharti-Wal-Mart type agreement with Reliance Retail (RRL) to enter India’s health and wellness market. The two have decided to get into an equal joint venture for wholesale business and plan to operate front-end stores through a franchisee agreement.
The Economic Times
Saturday, August 02, 2008
GOVT ALLOWS FOREIGN PLAYERS FOR 3G
The government on 1 August announced guidelines for roll out of next generation (3G) mobile service and Mobile Number Portability that allows cell users to switch operators without changing numbers—conveniences that will enhance the wireless telephony experience.
MINT
The government on 1 August announced guidelines for roll out of next generation (3G) mobile service and Mobile Number Portability that allows cell users to switch operators without changing numbers—conveniences that will enhance the wireless telephony experience.
MINT
INDIA SECOND BEST COUNTRY FOR BUSINESS INVESTMENT: SURVEY
India is the second best country for business investment, a new survey of American corporate executives shows. Conducted by Development Counsellors International every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. This is the first year respondents were asked to rank the business favourablity of the world’s 25 largest countries (based on GDP).
MINT
India is the second best country for business investment, a new survey of American corporate executives shows. Conducted by Development Counsellors International every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. This is the first year respondents were asked to rank the business favourablity of the world’s 25 largest countries (based on GDP).
MINT
IAEA CLEARS INDIA INSPECTION PLAN, BOOSTS US-INDIA DEAL
Governors of the UN nuclear watchdog approved an inspections plan for India by consensus on Friday, a key step towards finalising a US-Indian nuclear cooperation deal. The accord would open up to India the world market in atomic materials and technology for civilian use, but is controversial since New Delhi has conducted nuclear test explosions and never joined the global Non-Proliferation Treaty (NPT).
The Economic Times
Governors of the UN nuclear watchdog approved an inspections plan for India by consensus on Friday, a key step towards finalising a US-Indian nuclear cooperation deal. The accord would open up to India the world market in atomic materials and technology for civilian use, but is controversial since New Delhi has conducted nuclear test explosions and never joined the global Non-Proliferation Treaty (NPT).
The Economic Times
N-DEAL SPIN-OFF - 100,000 NEW JOBS, MORE RESEARCH OPPORTUNITIES
One of the spin offs of the India-US civil nuclear deal coming through will be the creation of 100,000 new jobs for the 30-odd reactors that India hopes to set up to meet its nuclear power deadline of 20,000 MW by 2020
The Economic Times
One of the spin offs of the India-US civil nuclear deal coming through will be the creation of 100,000 new jobs for the 30-odd reactors that India hopes to set up to meet its nuclear power deadline of 20,000 MW by 2020
The Economic Times
NOW, $10 LAPTOP FOR STUDENTS
After displaying its prowess in developing the world's cheapest car, India is on track to rolling out the world's cheapest laptop computer that could cost as low as $10.
The Economic Times
After displaying its prowess in developing the world's cheapest car, India is on track to rolling out the world's cheapest laptop computer that could cost as low as $10.
The Economic Times
GEMS & JEWELLERY EXPORTS TO GROW BY 15-20%
India’s gems and jewellery exports is likely to grow by 15-20 per cent this fiscal.
“We are expecting the whole gems and jewellery basket to grow by 15-20 per cent this year with gold export forming the major chunk of total exports,” Gems and Jewellery Export Promotion Council (GJEPC) Vice-Chairman Vasant Mehta told reporters in Mumbai.
The Financial Express
India’s gems and jewellery exports is likely to grow by 15-20 per cent this fiscal.
“We are expecting the whole gems and jewellery basket to grow by 15-20 per cent this year with gold export forming the major chunk of total exports,” Gems and Jewellery Export Promotion Council (GJEPC) Vice-Chairman Vasant Mehta told reporters in Mumbai.
The Financial Express
NOOYI TOP-PAID FEMALE CEO IN US: FORBES
CEOs heading America's 500 largest firms have taken a beating on their paychecks for the first time in five years, but the 13 female members of this elite club, headed by India-born chief of PepsiCo Indra Nooyi, have a reason to smile with a trend-defying hike.
The Financial Express
CEOs heading America's 500 largest firms have taken a beating on their paychecks for the first time in five years, but the 13 female members of this elite club, headed by India-born chief of PepsiCo Indra Nooyi, have a reason to smile with a trend-defying hike.
The Financial Express
Tuesday, July 29, 2008
FOREIGN M&As, PROJECTS TO DRIVE ICICI BANK
Even as the corporate and financial sectors talk of a slowdown and its possible impact on profitability, the country’s largest private sector lender, the Rs 4-lakh crore ICICI Bank, is betting big on overseas M&A and project finance as key growth drivers for FY09.
The Financial Express
Even as the corporate and financial sectors talk of a slowdown and its possible impact on profitability, the country’s largest private sector lender, the Rs 4-lakh crore ICICI Bank, is betting big on overseas M&A and project finance as key growth drivers for FY09.
The Financial Express
ENTERTAINMENT SECTOR TO GROW 18 % ANNUALLY
With new markets opening up, the entertainment and media sector is poised to witness about 18 per cent annual growth in the next five years. The study, titled 'Global Entertainment and Media Outlook 2008-2012', says India, along with other BRIC nations - Brazil, Russia and China - will see an economic growth of around 13.6 per cent as against 5.9 per cent growth that the rest of the world will witness in this period.
The Economic Times
With new markets opening up, the entertainment and media sector is poised to witness about 18 per cent annual growth in the next five years. The study, titled 'Global Entertainment and Media Outlook 2008-2012', says India, along with other BRIC nations - Brazil, Russia and China - will see an economic growth of around 13.6 per cent as against 5.9 per cent growth that the rest of the world will witness in this period.
The Economic Times
GREENBACKS POWER COMPANIES INVESTING IN RENEWABLE ENERGY
With oil prices ruling high despite recent correction, domestic companies such as Reliance Industries (RIL), Tata BP Solar, Essar Power, Suzlon and Moser Baer are investing more in renewable energy. While Suzlon, Moser Baer, Indowind and Webel raised $1.4 billion overseas in 2007 through convertible bonds for investment in green energy, RIL, Tata BP Solar and Essar Power raised $628 million on domestic stock exchanges in 2007
The Economic Times
With oil prices ruling high despite recent correction, domestic companies such as Reliance Industries (RIL), Tata BP Solar, Essar Power, Suzlon and Moser Baer are investing more in renewable energy. While Suzlon, Moser Baer, Indowind and Webel raised $1.4 billion overseas in 2007 through convertible bonds for investment in green energy, RIL, Tata BP Solar and Essar Power raised $628 million on domestic stock exchanges in 2007
The Economic Times
PROFIT-FOCUSED INFOSYS NOW LOOKS TO GROWTH
In a significant change of strategy, India’s second largest software services firm Infosys Technologies Ltd has said it will focus on growth, even if this means lower profitability — a reflection of a tougher business environment where Indian software firms are finding it harder to grow, and a contrarian play for a company that has sometimes walked away from deals that would have meant lower profitability.
MINT
In a significant change of strategy, India’s second largest software services firm Infosys Technologies Ltd has said it will focus on growth, even if this means lower profitability — a reflection of a tougher business environment where Indian software firms are finding it harder to grow, and a contrarian play for a company that has sometimes walked away from deals that would have meant lower profitability.
MINT
Rs 65,000-CRORE MAKEOVER FOR DELHI
The capital city of Delhi is set to shed its old and ugly skin to give way to a shiny new world-class avatar for the Commonwealth Games. This is no cosmetic touch-up job but a multi-thousand crore rupees makeover, which will ensure that the 16 million-odd residents of the city forget that they ever faced any shortages of the basic kind (think power, water, transport, medical facilities) and instead enjoy the abundance of aesthetics.
Business Standard
The capital city of Delhi is set to shed its old and ugly skin to give way to a shiny new world-class avatar for the Commonwealth Games. This is no cosmetic touch-up job but a multi-thousand crore rupees makeover, which will ensure that the 16 million-odd residents of the city forget that they ever faced any shortages of the basic kind (think power, water, transport, medical facilities) and instead enjoy the abundance of aesthetics.
Business Standard
PE DEALS SURGE 55% in H1 2008 DRIVEN by REALTY SECTOR
Private equity investments in the country witnessed an increase of 55 per cent in terms of value to touch $10.4 million during the first six months of this year, driven by significant deals announced in the realty and infrastructure sector. Overall, there were 207 deals worth $10.4 billion during first half of 2008, as against 178 transactions with a value of $ 6.69 billion during the corresponding period a year-ago.
Business Standard
Private equity investments in the country witnessed an increase of 55 per cent in terms of value to touch $10.4 million during the first six months of this year, driven by significant deals announced in the realty and infrastructure sector. Overall, there were 207 deals worth $10.4 billion during first half of 2008, as against 178 transactions with a value of $ 6.69 billion during the corresponding period a year-ago.
Business Standard
ANIMATION IND TO GROW TO Rs 42 bln BY FY09
The Rs 12 bn animation industry in India is set to grow to Rs 42 bn by 2009 with its revenues projected to double up to almost USD 1.5 bn by 2010. The Indian animation market is only one per cent of the global market of the USD 1,125 bn but growth is expected to be around 35 per cent in the next few years.
The Economic Times
The Rs 12 bn animation industry in India is set to grow to Rs 42 bn by 2009 with its revenues projected to double up to almost USD 1.5 bn by 2010. The Indian animation market is only one per cent of the global market of the USD 1,125 bn but growth is expected to be around 35 per cent in the next few years.
The Economic Times
BSNL SEEKS GLOBAL BIDS FOR MANUFACTURING EQUIPMENTS
Confronted with perennial shortage of modems and other broadband equipment, state-owned BSNL is exploring the possibility of setting up a joint venture for manufacturing these products. The PSU has invited tenders from all global equipment majors to enter into a JV for setting up manufacturing facilities in India.
The Economic Times
Confronted with perennial shortage of modems and other broadband equipment, state-owned BSNL is exploring the possibility of setting up a joint venture for manufacturing these products. The PSU has invited tenders from all global equipment majors to enter into a JV for setting up manufacturing facilities in India.
The Economic Times
RIGHT TIME FOR INVESTORS TO ACCUMULATE GREEN STOCKS
The oilfield of the future is not 200 feet deep below the surface. It is 96 million miles above the ground. This is not an understatement. High oil prices in the 1970s ended the era of crude oil as a source of electric power and kick-started the wind energy industry in Europe and elsewhere. Will the current regime of triple-digit crude oil prices begin the era of renewable energy?
The Economic Times
The oilfield of the future is not 200 feet deep below the surface. It is 96 million miles above the ground. This is not an understatement. High oil prices in the 1970s ended the era of crude oil as a source of electric power and kick-started the wind energy industry in Europe and elsewhere. Will the current regime of triple-digit crude oil prices begin the era of renewable energy?
The Economic Times
Tuesday, July 22, 2008
INDIA AMONG TOP THREE MEDIA, ENTERTAINMENT MARKETS
India continues to be one of the top three markets for global collaborations in entertainment and media, because of a 'relatively friendly foreign investment regime..
The Economic Times
INDIA INC’S TOP CEOs GIVE NO SIGNS OF SLOWDOWN
A majority of CEOs from top Indian companies including ICICI Bank, Bajaj Auto, TVS Motor GE India, and HUL, do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins.
The Indian Express
THE INVISIBLE HAND OF POLICY IS WORKING
The unravelling of the merger between Reliance Communications (RCOM) and South Africa’s MTN and the travails of the Ranbaxy-Daiichi Sankyo deal highlight the changed economic environment in India. If it came to pass, the RCOM-MTN deal would have created an international telecom giant with a subscriber base of 120 million from the Cape of Good Hope to the Himalayas..
Hindustan Times
Monday, July 14, 2008
M&As CONTINUE TO CLICK, JUNE SEES 51 DEALS WORTH $5.35 BN
Amid apprehensions of economic slowdown, India Inc. seems to have resorted to mergers & acquisitions to keep their business going. The number of M&A deals announced in June stands at 51 with value at $5.35 billion, as against 49 deals and $2.92 billion in May...
The Economic Times
Amid apprehensions of economic slowdown, India Inc. seems to have resorted to mergers & acquisitions to keep their business going. The number of M&A deals announced in June stands at 51 with value at $5.35 billion, as against 49 deals and $2.92 billion in May...
The Economic Times
Tuesday, July 08, 2008
INDIAN FIRMS EMPLOY OVER 30K
Amidst the row in US over outsourcing, a study has said that big corporates like Essar, HCL, Tata, Mahindra and Wipro have generated over 30,000 jobs for Americans in recent years.
The Financial Express
RESULTS FROM IT COS SET TO EXCEED TARGETS
First-quarter results for India’s largest software services companies are expected to exceed the most bullish markets estimates, reflecting a windfall from the weaking of the rupee against the US dollar and the euro.
Livemint
IT/ITES TO FUEL REALTY GROWTH IN ‘08
Demand for office space has traditionally been driven by the IT/ITeS sectors that comprise software development and processing centres. This is expected to be the largest demand driver in 2008 as well. Of the total expected supply of 82.8 million sq.ft.in 2008, IT related developments will garner the largest chunk.
Livemint
PC SALES CROSS 7.3 MN UNITS, UP BY LAST YEAR'S 16 PC
Driven by growing notebook consumption in the country, personal computer sales crossed 7.3 million units in 2007-08, registering a growth of 16 per cent over the previous year. Information Technology (IT) consumption in 2007-08 was led by a significant growth in notebook sales, which grew by 114 per cent.The Economic Times
INDIAN CELLULAR SERVICES MARKET TO SURPASS $37 BILLION BY 2012
Total cellular services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 18 percent from 2008-2012 to exceed US$37 billion, according to Gartner. The India mobile subscriber base is set to exceed 737 million connections by 2012 growing at a CAGR of 21 percent in the same period. This growth is poised to continue through the forecast period, and India is expected to remain the world's second largest wireless market after China in terms of mobile connections.
Consumerinfoline
Total cellular services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 18 percent from 2008-2012 to exceed US$37 billion, according to Gartner. The India mobile subscriber base is set to exceed 737 million connections by 2012 growing at a CAGR of 21 percent in the same period. This growth is poised to continue through the forecast period, and India is expected to remain the world's second largest wireless market after China in terms of mobile connections.
Consumerinfoline
Sunday, June 29, 2008
IDEA DEAL GOOD FOR INVESTORS, CONSUMERS
The Idea-Spice merger brings is good news for shareholders as well as consumers of Idea and Spice, experts said. "The offer price and the deal is good for investors especially under current market conditions," said Phani Sekhar, fund manager at Angel Broking.
Yahoo News
The Idea-Spice merger brings is good news for shareholders as well as consumers of Idea and Spice, experts said. "The offer price and the deal is good for investors especially under current market conditions," said Phani Sekhar, fund manager at Angel Broking.
Yahoo News
Subscribe to:
Posts (Atom)