Group: INDIA - Prospects in Central Europe

MARKET MOVEMENT

Major Indices 23-Oct-2009 30-Oct-2009 % Change Change
BSE SENSEX 16,810.81 15,896.28 (5.44)
NSE Nifty 4,997.05 4,711.70 (5.93)



POLICY WATCH

India signs Free Trade Agreement with ASEAN members
India, US agree on trade pact framework
Egypt offers special zone to India Inc
New India-Nepal treaty simplifies export refund
Government, Bengal ink chemical hub pact

India signs Free Trade Agreement with ASEAN members
India signed a Freed Trade Agreement (FTA) with the Association of South East Asian Nations (ASEAN) members. This agreement is aimed to help fighting the situation like global crunch, as there will be minimum duties on goods amongst their trading in ASEAN countries. The trade size between India and ASEAN countries is huge and its size is around 48 billion dollars. Indian Government looks forward to working closely with the ASEAN and other countries of the East Asia Summit process to establish the Nalanda University as an international institution of excellence in the education with a continual focus.

India, US agree on trade pact framework
India and the US agreed on a framework to promote trade and investment. The two Governments agreed to work together on a framework for promoting real and meaningful cooperation in trade and investment. India and the US had also agreed to sign agreements on intellectual property rights and sharing of traditional knowledge digital library. The two sides also agreed to work together to support greater involvement by small and medium enterprises in each other's markets, and to pursue initiatives in the future development of India's infrastructure, and collaboration on clean energy and environmental services and other sectors.

Egypt offers special zone to India Inc
Egypt has invited India to build an India industrial zone in the Suez development area for setting up Joint Ventures (JV) with Egyptian companies. Egypt has offered to designate an area for setting up of the zone exclusively for Indian companies. India could gain significantly from the offer as it would give it easier entry to the European and African markets, since Egypt has preferential access to both. Indian companies have, till now, invested about $750 million in 40 projects in Egypt. It has a significant presence in the IT and automobile sector with companies like Wipro, Satyam, Mahindra and Tatas, having invested in the country.

New India-Nepal treaty simplifies export refund
India and Nepal inked a new trade treaty that will lower the incidence of taxes on exports to the Himalayan nation and benefit Indian companies such as Dabur, Asian Paints and HLL that have manufacturing presence there. A number of floriculture products, atta, bran, husk, bristles, herbs, stone aggregates, boulders, sand and gravel in addition to the existing ones can also be imported duty-free into India as per the new treaty. This trade pact will not only make the export refund procedure simple but also lay down clearly that no discrimination will made on the basis of payment modality or currency of payment.

Government, Bengal ink chemical hub pact
The Centre signed a Memorandum of Understanding (MoU) with the West Bengal Government for setting up a chemical hub at Nayachara Island. This is a step towards implementing the much-awaited chemical hub project, which is a critical component of the proposed petroleum, chemical and petrochemical investment region (PCPIR) in the state. The Centre will invest Rs 25.08 billion in developing infrastructure for the hub.



INDUSTRY WATCH

Forex reserves up $684 million to $285 billion
¥260.6 billion Japan loan for freight corridor project
SEBI in pact with Dubai regulator
Infra financing to be made easier

Forex reserves up $684 million to $285 billion
India's foreign exchange reserves rose by $684 million to $285.520 billion from $284.836 billion. Foreign Currency Assets (FCAs), during the period, grew to $268.348 billion as against $267.898 billion. FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies such as Euro, Sterling, Yen held in reserves. Gold reserves stood unchanged at $10.316 billion, while the Special Drawing Rights (SDRs) stood marginally up at $5.267 billion from $5.250 billion.

¥260.6 billion Japan loan for freight corridor project
The Government of Japan has committed an amount of ¥260.6 billion for the engineering services loan under the dedicated freight corridor project (Phase-I). The objective of the project is to cope with the increase of freight transport demand in India by constructing new dedicated freight railway system, thereby, promoting comprehensive regional economic development along the freight corridor, through improvement and modernization of inter-modal logistic system handling considerable freight.

SEBI in pact with Dubai regulator
Securities Exchange Board of India (SEBI) has inked a Memorandum of Understanding with Dubai's regulatory agency, Dubai Financial Services Authority (DFSA), for bilateral assistance and mutual co-operation. The DFSA is the only independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre. The MOU was signed to establish a general framework for cooperation and consultation and mutual assistance between the regulatory authorities, in order to facilitate the fulfilling of their regulatory responsibilities. SEBI has signed such bilateral MOUs with 16 global jurisdictions; it has also signed a letter of intent for mutual co-operation with the Hong Kong regulatory body, the Securities and Futures Commission.

Infra financing to be made easier
Non-banking finance companies (NBFCs) such as IL&FS, IDFC, L&T Finance, Srei Infrastructure and India Infrastructure Finance Company (IIFCL) will find it easier to lend to infrastructure projects with the RBI creating a new category of NBFCs. The new category of NBFCs will be those that specialise in financing infrastructure projects and include firms which have allotted 75% of their total assets to financing infrastructure projects. There are three categories of NBFCs now — asset finance companies, loan companies and investment companies. Up until now, all NBFCs involved in infrastructure finance were classified under asset finance companies.


CORPORATE HIGHLIGHTS

Toyota's Hino Motors to launch luxury buses in India by December
Sasken buys Ingenient's assets, product portfolios
Avesthagen forms JV with Limagrain
Shristi in tie-up with Westin for 5-star hotel
IT startup ties up with Spanish firm to serve SMEs
Tata Power, Norwegian firm sign pact on hydropower projects
Essar in pact to buy 3 Shell refineries
L&T sells 50% Voith Paper stake to Voith AG

Toyota's Hino Motors to launch luxury buses in India by December
Hino Motors Corporation (HMC), a Toyota Group company would launch luxury buses for Indian roads by December. The Indian arm, Hino Motors Sales India Pvt Ltd, has also set a target to sell 700-800 units of heavy trucks and buses before March 2010 and plans to double it by next year. Hino also launched two truck models, FM8J and FL8J, priced at around Rs 4 million from the Hino 500 series, its fastest selling vehicles in the overseas market. The company would import the cabin and chassis in a semi-knocked down (SKD) form from its Thai plant and assemble these at Hino's facility near Bhiwandi, near Mumbai. The company had identified three partners for tippers and one partner for buses.

Sasken buys Ingenient's assets, product portfolios
Sasken Communication Technologies has acquired the product portfolio, some customer contracts and certain assets of the US-based Ingenient Technologies Inc, a provider of embedded multimedia software solutions. As part of the deal, Ingenient will transfer 40 engineers in Chicago and sales team in Korea and Japan to Sasken. Ingenient's software solutions enable the creation, delivery, management and presentation of rich multimedia content. Customers of Ingenient range from tier one original equipment manufacturers to high-tech start-ups. The engineering team in US will form the core of Sasken's Chicago development centre, which will be a beachhead for new product development supported by multi-site service delivery model.

Avesthagen forms JV with Limagrain
Avesthagen, a Bangalore-based life sciences firm, has announced the formation of a Joint Venture (JV) with Limagrain, a French international cooperative group. Limagrain will hold the majority 51 % in the JV, Atash Seeds Pvt Ltd, to build a agri-biotech business model for field crops. Avesthagen will license its patented technologies to Atash Seeds to develop, produce and market seeds nationally and internationally by leveraging Limagrain's network. The Joint Venture will work on new seed varieties that will attempt to address farmers' needs to combat drought, salinity while improving quality. Atash Seeds will promote biotech-driven, gene-based seed technologies designed to address needs of the farmer and other emerging markets.

Shristi in tie-up with Westin for 5-star hotel
Shristi Infrastructure Development Corporation India Ltd has entered into a management tie-up with Westin Hotels & Resorts, a chain of hotels owned by the US-based Starwood Hotels & Resorts Worldwide, to run its upcoming five-star hotel at Rajarhat. The 330-room hotel, to be named after the Westin brand, will be set up by Shristi at an estimated investment of Rs 8 Billion. Construction on the 8-acre land has already started and we hope to launch the hotel in the beginning of 2012. The hotel, located near the Kolkata airport, will cater to both business and leisure travelers. The 1 million sq ft hotel will also have helipad facility and a modern escape elevator security system built on Israeli technology, in which the guests will have an escape route in every floor in case of an emergency situation.

IT startup ties up with Spanish firm to serve SMEs
Information technology startup Starlite tied up with Spanish enterprise resource planning solution firm Openbravo to cater to the small and medium enterprises market in the country. Starlite provides services in sectors like infrastructure management, data warehousing, business technology services, enterprise application services and IT consulting. Through the tie-up with Openbravo, Starlite will provide open source Enterprise Resource Planning (ERP) solutions to small and medium scale companies in India. SME market in developed countries as well as emerging markets in India is underserved. This gives us an opportunity to grow faster in the SME market.

Tata Power, Norwegian firm sign pact on hydropower projects
Tata Power has signed an agreement with Norwegian renewable energy company SN Power to jointly develop hydropower projects in India and Nepal. This is the first time that the Tata group firm has entered into a partnership with a hydropower company. The Joint Venture aims to add 2,000 MW by 2015, and a total of 4,000 MW by 2020. Both companies have begun pursuing potential renewable energy project opportunities in the Himalayas. SN Power provides valuable hydropower experience from Norway as well as from key projects in emerging markets, including India and Nepal. The partnership allows them to combine their extensive hydropower competence with their large scale industrial experience.

Essar in pact to buy 3 Shell refineries
The Ruias-owned Essar Group has clinched an exclusive agreement to buy three refineries from Royal Dutch Shell, beating larger rivals, including US-based Valero Energy, in a move that could potentially catapult the Mumbai-based conglomerate to become India's largest overseas refiners. The talks to buy the three refineries from Royal, Europe's largest refiner, saw many suitors, including Libya's National Oil Corporation and an investment vehicle controlled by the Saudi royal family, lining up. The three refineries include one in the UK and two in Germany, and have a combined capacity of 500,000 barrels per day, or about 26 million tonnes per annum.

L&T sells 50% Voith Paper stake to Voith AG
Larsen & Toubro Ltd said that it has sold its 50% stake in Voith Paper Technology India Ltd to its Joint Venture (JV) partner Voith AG of Germany. Voith Paper Technology provided design, consultancy and other value-added services to the Indian paper industry that included setting up of complete paper plants. It is currently executing three major orders from West Coast Paper, Century Paper and Tamil Nadu Newsprint and Papers Ltd, an L&T. Voith will continue to work with its long-term joint venture partner (L&T) in the field of manufacturing of machinery and equipment for pulp and paper production.

MARKET MOVEMENT

Major Indices 30-Oct-2009 06-Nov-2009 % Change Change
BSE SENSEX 15,896.28 16,158.28 1.64
NSE Nifty 4,711.70 4,796.15 1.79



POLICY WATCH

Government approves DIPP proposal on Foreign Technology Collaborations
Directive on Public Sector Unit listing opens disinvestment tap
Government clears road improvement projects worth Rs 42.26 billion
Government begins sector-wise review on managerial pay cap

Government approves DIPP proposal on Foreign Technology Collaborations
A Proposal to permit all payments for royalty, transfer of technology, use of trademark, brand name on the automatic route without any restrictions, and subject toForeign Exchange Management Act (FEMA), Current Account Transaction) Rules, 2000, is approved by the Government.. So far automatic approval was permitted for foreign technology transfers involving payment of lump sum fee of US$ 2 million and royalty of 5% on domestic sales and 8% on exports. Beyond these limits, prior permission of the Government of India (Project Approval Board) was required.

Directive on Public Sector Unit listing opens disinvestment tap
Giving its disinvestment programme a big push, the Government has asked all listed, profitable Central Public Sector Enterprises (CPSEs) to meet the mandatory listing norm of at least 10% public ownership.It has also asked all unlisted CPSEs with positive net worth, no accumulated losses and a net profit track record in the three preceding consecutive years to get listed. Both these decisions are likely to lead to a slew of equity offerings including Follow-on Public Offerings (FPOs). The eligible candidates include behemoths such as NMDC, MMTC, Neyveli Lignite Corporation, Rashtriya Chemicals and Fertilizers, National Fertilizers, Coal India, BSNL and Engineers India.

Government clears road improvement projects worth Rs 42.26 billion
The Government approved road improvement projects, worth Rs 42.26 billion, for over 440 km of various national highways stretches. The projects are to be given out on design, build operate, finance and transfer basis and are part of third phase of the National Highways Development Project (NHDP), the Government's programme to develop road infrastructure across the country. Major projects, cleared by the Cabinet Committee on Infrastructure, include the Rs 10.78 billion project for four-laning of 103 km of Farakka-Raiganj section on NH-34 in West Bengal.

Government begins sector-wise review on managerial pay cap
The Government has for the first time begun a sector-wise assessment on the cap on managerial pay.This comes in response to representations on the issue. Currently, the remuneration for directors and managers put together cannot exceed 11% of a Company's net profits. This cap applies to companies cutting across all the sectors. This new exercise is to understand sector-specific concerns to evolve a managerial remuneration approval system that is rational, objective and transparent. The Government is also looking at the recent global developments on managerial remuneration.


INDUSTRY WATCH

Indian mutual fund industry touches high of US$ 162.62 billion
SEZs post Rs 890 billion exports in April - September
Indian auto sector growth soars
Indian offshore industry saw increased momentum in Q3
Over 500 million Indians own telephones

Indian mutual fund industry touches high of US$ 162.62 billion
The Indian mutual fund industry touched an all time high of US$ 162.62 billion and the industry's average Assets under Management (AUM) grew by US$ 4.14 billion, or 2.61%, in October 2009,on the back of increased inflows in fixed income plans. The combined average AUM of the 36 fund houses hit US$ 162.81 billion at the end of October 2009. Inflows into fixed income schemes helped the industry to record a growth in assets.

SEZs post Rs 890 billion exports in April - September
Exports from the country's 101 operational Special Economies Zones (SEZ) topped Rs 890 billion during the first six months (April-September)of the current financial year, compared to Rs 996.89 billion worth of exports in the entire 2008-09. Out of the Rs 890 billion, around Rs 250 billion worth of exports took place from Government SEZs, Rs 90 billion from state and private SEZs and the remaining approximately Rs 450 billion from SEZs that are set up under the Act. The total number of employees in various SEZs across the country also grew from 283,425 to 418,129.

Indian auto sector growth soars
The country's auto majors have reported a significant growth in October 2009.Maruti Suzuki India has posted a 32.45 % jump in total sales at 85,415 units in October compared to the same period last year, Hyundai Motor India's total sales for October 2009 stood at 51,736 units as against 46,596 units in October 2008, registering 11% cumulative growth. The festive period of the last two months generated strong sales and has given the Indian automobile industry.

Indian offshore industry saw increased momentum in Q3
Outsourcing companies in India saw their businesses growing in the third quarter of this year,driven by improving business sentiments across the world. The Indian offshore industry is growing on the back of improving demand and continued advantages of India as an offshore destination. India centric suppliers are investing in delivery capabilities and setting up new centers. The number of offshoring destinations worldwide increased to an 18-month high in the third quarter of 2009. As many as 36 new supplier delivery centers established in third quarter compared to 30 during in the previous quarter. Besides, 28 new captives were established in the third quarter globally.

Over 500 million Indians own telephones
The country's telecom subscriber base has crossed the 500 million-mark and the growth milestone has been achieved 15 months ahead of target. The country had targeted reaching this number by end of 2010, but actually crossed this mark in September this year. The number of telephone subscribers in India increased to 509.03 million at the end of September from 494.07 million in August, registering a growth rate of 3.03%. The set target of 500 million telephones by the end of 2010 has been achieved by September 2009. This takes the tele-density to 43.50 % in the country whose population stands at near 1.20 billion. Wireless Tele-density stands at 40.31. Mobile operators added 15.1 million users in August.


CORPORATE HIGHLIGHTS

ProSim and Hitachi join hands to tap 300 casting units across India
Wipro acquires select Yardley business for $45.5million
Toyota crosses 400,000 units in India sales
Posiflex Technology acquires Protocol Systems
JBM Group in education tie-up with Dassault Systemes
Air India, Aerostar join hands for jet engine repair services
McNally Bharat completes Humboldt Wedag arm buy

ProSim and Hitachi join hands to tap 300 casting units across India
Technology solutions provider ProSim and Tokyo-based ProSim have joined hands to provide simulation software support and services to casting units in India.The joint partnership aims to generate revenues up to Rs 350 million in three years' time. The two companies are planning to tap some 300 casting units in cities like Pune, Kolhapur, Belgaum, Mumbai, Rajkot, Delhi, Agra, Bangalore and Coimbtore. There are more than 5,000 big casting units across India. Out of these some 350 companies have turnover in excess of Rs 5 billion. The new tie-up looks at these companies to sell Hitachi's specialized simulation tool Adstefan and also provides after-sales support.

Wipro acquires select Yardley business for $45.5million
The consumer care and Lighting business of Wipro acquired the Yardley business in Asia, Middle East, Australia Asia and certain African markets for $45.5 million from UK-based Lornamead Group. The revenue run-rate of the business for 2010 is $24 million. The transaction is expected to be completed by mid December 2009. Lornamead Group will retain the Yardley business in Europe and the America's. This is the second largest acquisition made by the Consumer Care and Lighting division of the Company. In 2007 Wipro Consumer Care and Lighting acquired Unza for $256 million.

Toyota crosses 400,000 units in India sales
Toyota has announced that it has crossed the 400,000 units mark in India since it commenced operations 11 years ago.The Company which is in a joint venture with the Kirloskar Group in India is in the process of setting up a manufacturing facility in Bangalore for production of its strategic small car at an investment of Rs 32 billion. This is a big step towards establishing Toyota as one of the major players in the Indian automobile market. This, in fact, could not have come at a better time for both, with the launch of the compact car in the Indian market next year.

Posiflex Technology acquires Protocol Systems
Posiflex Technology, a manufacturer of Point of Sale (POS) terminals, has announced to set up its own subsidiary in India with the acquisition of majority stake in Bangalore-based Protocol Solutions, which used to be its distributor in India for the last eight years. The Taiwan-based Company which competes with global majors like IBM, Fujitsu and NCR in this segment, plans to invest $10 million in India in the next three years, a part of which has gone to acquire controlling stake in Protocol Solutions. The immediate goal of the Company would be to strengthen the sale and marketing activity in India other than increasing the brand awareness. A part of the investment would also go to set up its R&D team which would basically help the Company understand the local customers' need and customize the POS products accordingly.

JBM Group in education tie-up with Dassault Systemes
Auto component manufacturer JBM Group expects its revenue to grow over 20% this fiscal on account of revival in the automotive market.The atmosphere is positive in the Indian automobile industry and the demand is coming back from original equipment manufacturers. JBM's partnership announced with Dassault Systemes to enter the education sector. JBM Group has tied up with Dassault Systemes to provide large-scale technology deployment across JBM Group's business unit. Sales reviving across segments such as passenger vehicles, two-wheelers and commercial vehicles, the profit margins of the Company have also improved. The group is targeting revenue of Rs 33 billion in the current financial year.

Air India, Aerostar join hands for jet engine repair services
Air India's Engine Overhaul Facility, Mumbai, and Aerostar Asset Management.Targeted at the West Asian market, this initiative will provide engine repair and management solutions to all airline operators of the region. This alliance will sell repair services for jet engines such as GE CF6-50 and 80 series, P&W 4000 series, GE-90 series and CFM56-7 series and will also cover CFM56-5 series engine in the future. A marketing agreement was recently executed between the two companies and the brand will be formally launched at the Dubai Air Show later this month.

McNally Bharat completes Humboldt Wedag arm buy
McNally Bharat Engineering Company Ltd (MBE), belonging to the BM Khaitan Group, has concluded the acquisition of coal and mineral technology business of Humboldt Wedag GmbH. The acquisition has been made through MBE's wholly-owned subsidiary in Singapore, MBE Holdings Pte Ltd, for $16 million, of which $7.5 million has been a cash payout and the balance goes towards the statutory liability on account of workshop employees who have been absorbed. MBE's order book position amounted to Rs 29.25 billion. During the second quarter, the company's total income amounted to Rs 3.05 billion.

MARKET MOVEMENT

Major Indices 06-Nov-2009 13-Nov-2009 % Change Change
BSE SENSEX 16,158.28 16,848.83 4.27
NSE Nifty 4,796.15 4,996 4.16


POLICY WATCH

Government setting up spatial data infrastructure
Government approved three port projects worth Rs 77 billion
Government begins work on finance sector reforms
Government approved $70 million investment by OVL in Brazil block

Government setting up spatial data infrastructure
The State Government has announced the setting up of a spatial data infrastructure called the Kerala State Spatial Data Infrastructure (KSSDI).The objective of the SSDI is to provide a basis for spatial data discovery, evaluation and application for users and providers within all levels of Government, commercial as well as the non-profit sector and the citizens in general. It would also aim at creating a reliable and supporting environment to access geographically related information using a minimum set of standard practices, protocols and specifications. The State Government has invited proposals from consulting firms to establish a geo-portal and clearing house for the KSSDI on a turnkey basis and has already approved Rs 93.7 million for the five-year project.

Government approved three port projects worth Rs 77 billion.
In a move to boost capacity at major ports in the country, a Government panel approved three projects worth over Rs 77 billion, to be developed through the Public-Private Partnership (PPP) mode.The projects, cleared by the Public-Private Partnership Approval Committee (PPPAC), include development of the fourth container terminal at Jawaharlal Nehru Port (JNPT), Navi Mumbai, the largest container terminal to be considered for construction in the country. The project, to be built at an estimated cost of Rs 67 billion, is currently stalled due to litigation issues.

Government begins work on finance sector reforms
Indian policymakers have begun the groundwork for a new architecture to strengthen the country's financial system.The High Level Co-ordination Committee on Financial Markets (HLCCFM), which has representation from all financial regulators and finance secretary, is preparing a paper that will outline the mechanism to ensure financial stability in the country. The paper would also look at conglomerates or multi-product financial service providers.

Government approved $70 million investment by OVL in Brazil block
Government has approved additional investment by ONGC Videsh Limited (OVL), a wholly owned Subsidiary of Oil & Natural Gas Corporation,for its offshore oilfield in Brazil. ONGC Videsh owns a 15% stake in the BC-10 block in Campos's basin in the Latin American country. The firm had also been authorized to invest another $17.5 million, if needed, after an approval from an empowered committee of secretaries. The investment in overseas oil assets is aimed at enhancing security of the country.


INDUSTRY WATCH

Festive cheer pumps up industrial output
Premium consumer goods high in demand
Vehicle sales increase 15% in October
Imports of sensitive items up by 30.4% in April - August
Telecom sector contributes Rs 450 billion for Government

Festive cheer pumps up industrial output
Industrial output grew by a surprisingly strong 9.1% in September from a year ago, reinforcing optimism that economic recovery is on track.Strong growth in factory output, or manufacturing one of the three components of the Index of Industrial Production (IIP) along with electricity and mining was driven by a surge in consumer durable production and output of capital goods. Pick-up in demand and easier financing also seem to have also spurred investment activity, evident from the strong growth in the production of capital goods in September 2009 on a high 20.8 % base during the year ago period.

Premium consumer goods high in demand
High-end consumer goods such as plasma screen TVs, air-conditioners and automatic washing machines having been moving off the shelf at a faster.The segment grew by around 25% during the period up to September on a yearly basis, shows snap industry estimates. Sales of LCD televisions, which account for about 7% of total TV sets sold in the country, rose 83% to 700,000 sets while that of plasma television grew 19% to 28,000 units over same period last year. Higher purchasing power among affluent consumers was driving growth in mid and high-end items in urban markets, where the focus is more towards upgrading products.

Vehicle sales increase 15% in October
Total vehicle sales in October rose 15 % over the same period last year as the market continued an upward trend for the ninth month in a row after the low base of the previous year. Passenger vehicle sales in October were up 33 % at 168,043, over the same month last year. This includes passenger car sales, which showed a similar growth of 34 % at 132,615 units. Maruti Suzuki was the market leader logging sales of 63,365 units, a 21.5 % increase over the same time in the previous year.

Imports of sensitive items up by 30.4% in April - August
Imports of sensitive items, including edible oil, rose by 30.4% during April-August this year, propelled by a 424.8% jump in the shipments of milk and milk products.The overall import of the items went up to Rs 224.29 billion during the period from Rs 172.06 billion in the same period last year. Imports of edible oil rose 87.7% during the period. The imports of edible oil, milk and milk products were at Rs 8994.36 billion and Rs 963 million in April-August. The increase in edible oil import is mainly due to a substantial increase in import of crude palm oil and its fractions.

Telecom sector contributes Rs 450 billion for Government
India's telecom story is always shining. The telecom sector's contribution to the exchequer is growing exponentially.Latest data reveals a near 50% increase in license fee receipts over the last five years and an over 250 % increase in spectrum charges. In 2009-10, the telecom sector is estimated to contribute around Rs 450 billion to Government's kitty. The proportionate increase in spectrum charges received by the Government during 2004-09, is far higher than the increase in license fee. The license fee has moved up from Rs 68.16 billion in 2004-05 to Rs 95.108 billion in 2008-09.


CORPORATE HIGHLIGHTS

Turkish Hidromas, Japanese Fujitec to establish units in Mahindra World
TVS Logistics acquires UK's Multipart Holding
Honda is Committed to JV with Hero Group
Renuka Sugars acquires Brazilian Company for Rs 3.77 billion
RCOM in tie up with Atom Tech to offer M-Commerce transactions
SunTec ties up with Sygnity for solutions to Poland banking sector
Titan Energy, Enfinity tie up for solar power project
Rallis now Tata Chemical subsidiary

Turkish Hidromas, Japanese Fujitec to establish units in Mahindra World
Over the last few months, the official machinery in Tamil Nadu has swung into hi-decibel mode, clearing big and small projects on fast track.Signs of green shoot have made investors upbeat on their business prospects. Reinforcing the State's position as a premier investment destination for MNCs, Hidromas, a Turkish Company, is gearing up for its maiden foray into Chennai while Fujitec India is another entity, which is setting up a manufacturing unit in the city. Currently, it is planning to set up an assembling plant. The lift manufacturing facility envisages an investment of Rs 600 million to Rs 700 million.

TVS Logistics acquires UK's Multipart Holding
TVS Logistics, part of TVS group has acquired Multipart Holding, which is among the top three after market logistics companies in UK. Multipart was engaged in the distribution of vehicle parts for Leyland, UK. In 1993, it became a separate Company and grew to provide aftermarket logistics services to its automotive clients and UK's defense sector besides tapping the emerging utility sector. The growing Indian logistics market has also encouraged the Company to expand operations by floating ventures like TVS Dynamic Logistics services, TVS commutation solutions and TVS infrastructure.

Honda is Committed to JV with Hero Group
Japanese auto major Honda said it is committed to its Joint Venture (JV) with the Hero Group, putting to rest speculations of a rift between the partners.Honda and the Hero group hold 26 % each in their Joint Venture (JV). The Hero group and Honda had extended their agreement for 10 years, under which the Japanese partner would continue to provide technology to the JV. It is coming up for renewal in 2014. Hero Honda has been ranked as the number one two-wheeler maker for the 8th year in a row since 2001 and is targeting to sell over 4,000,000 units this fiscal.

Renuka Sugars acquires Brazilian Company for Rs 3.77 billion
Indian sugar companies are now acquiring a global footprint. The country's largest refiner Shree Renuka Sugars (SRSL) has bought distressed Brazilian sugar and ethanol producer Vale Do Ivai (VDI) in a deal worth $82 million.This is the first time an Indian Sugar Company has bought a Company overseas and could well pave the way for more such acquisitions by SRSL in Brazil, the world's biggest producer and exporter of sugar and ethanol. SRSL has bought 100% equity in VDI, which gives it control over two ethanol and sugar factories that can together crush 3.1 million tonne cane each year, 18,000 hectares on long lease, along with strategic stake in godowns and loading facilities at Paranagua port.

RCOM in tie up with Atom Tech to offer M-Commerce transactions
Reliance Communications (RCOM) has entered into a strategic tie-up with M-Commerce solution provider Atom Technologies to offer a fast and secure platform to conclude payment transactions using Reliance Mobile.Through RCOM, Atom will offer multiple banks (Indian and foreign) as well as merchants a common platform, allowing its subscribers to make payments across the entire merchant base. Reliance subscribers would also be able to purchase insurance services, DTH recharges, movie tickets, books and periodicals, consumer goods, holiday packages as well as bus and train tickets using their Reliance Mobile connection. RCOM's tie-up with atom Technologies is expected to drive nearly 30 % of the m-Commerce traffic volume across its GSM and CDMA networks.

SunTec ties up with Sygnity for solutions to Poland banking sector
Transaction Business Management Solutions (TBMS) major SunTec Business Solutions has tied up with Sygnity,a leading IT solutions provider in Poland, to deliver Relationship Based Pricing (RBP) and centralized billing solutions to banking and financial institutions in Poland. The two companies would provide readymade solutions for banks and financial institutions that can be easily deployed and will efficiently integrate with the banks' existing IT framework. The new solution would enable flexible pricing, personalization of services and enhanced operational efficiency while allowing banks to introduce innovative product bundles, packages and pricing plans. The two companies will co-operate on creating a centre of excellence for RBP and collaborate on joint go-to-market activities and alignment of strategic direction in the region.

Titan Energy, Enfinity tie up for solar power project
Titan Energy Systems and Enfinity, based in Waregem Belgium, have joined hands to establish a 1 Giga Watt Power (GWp) or 1000 MW of solar Photovoltaic (PV) installations in Andhra Pradesh.Enfinity will develop and finance this project while the Hyderabad-based Titan Energy Systems will act as a contractor and supplier of the PV Modules. Enfinity and Titan will establish a Special Purpose Vehicle (SPV) for this purpose. In the Phase-I of the project about 500 MW capacities is to be constructed in the next five years. About 1500 acres has been allocated to Titan Energy in Kadiri in Anantapur district by the State Government.

Rallis now Tata Chemical subsidiary
Tata Chemicals has invested Rs 890 million to acquire 980,000 equity shares of Rallis India.The shares were allotted on a preferential basis at Rs 908.51. With the allotment, Tata Chemicals now holds 50.06 % of the equity capital of the Company. Rallis India has become a subsidiary of Tata Chemicals. Tata Chemicals in August emerged the single largest shareholder with 45.97 % holding in Rallis India. Tata Chemicals purchased 35.68 % stake from its group companies at an investment of Rs 3.63 billion. The Tata Group decided to consolidate its agriculture business after which the group companies Tata Tea, Tata Sons, Tata Investment Corporation and Ewart Investments divested their holding in Rallis India to Tata Chemicals. Tata Chemicals funded the share buy from its internal accruals.