SME micro-finance agency State Industrial Development Bank of India (SIDBI) has raised Rs. 500 crores by selling 10-year bonds to a state-run insurance firm.
The coupon on the bonds is 9.6%, payable annually. SIDBI plans to sell another Rs. 500 crores worth of bonds to other investors through a private placement, on the same terms as its deal with the insurance company. The issue is rated AAA by CARE, signifying the highest safety. Bank of America was the sole arranger for this issue.
Article in The Economic Times.
Tuesday, February 27, 2007
Mahindra and Mahindra, Renault and Nissan form Rs. 4000 crore-joint venture in Tamil Nadu
Auto and auto components major Mahindra and Mahindra (M&M) has formed a tripartite joint venture with global auto giants, France’s Renault and Nissan from Japan, to set up a Rs. 4000 crore-greenfield automobile plant at Oragadam, near Chennai in Tamil Nadu. The facility will have a capacity to manufacture 400,000 units by 2009 and would be used by all the three auto majors for production of vehicles from their respective stables. M&M will hold 50% stake in the new venture, while the rest will be jointly head by Renault and Nissan of Japan. The Tamil Nadu government would provide land and incentives for the project. M&M President, automotive sector, Pawan Goenka was named the chairman of the JV company.
The Tamil Nadu government has already had some land and would acquire more to meet the needs of the facility, which would come up on a 925-acre plot. The new facility would see to it that those displaced due to acquisition of land for the project would be relocated at a place convenient to them. The new company would also start vocational schools in the area to train students and absorb them in the facility.
The project would consist of integrated automobile manufacturing facilities which would include engine plant, transmission plant, press shop, body shop, paint shop and assembly line, an official press release here said, adding this would be India's biggest vehicle manufacturing centre at a single location. It would involve manufacture of 50,000 tractors per annum and there would be a Mahindra Research Valley in the Mahindra World City near Chennai.
The project would result in gross value addition of about Rs. 18,000 crores per annum to Tamil Nadu's GDP and the additional investment in the State by vendors and supporting service providers was expected to be about Rs. 10,000 crores. The new facility would provide direct employment to 5000 people and indirect employment to many more.
M&M and Renault already have an existing JV which is manufacturing the Logan brand of cars.
Read the articles in The Economic Times and Business Standard.
The Tamil Nadu government has already had some land and would acquire more to meet the needs of the facility, which would come up on a 925-acre plot. The new facility would see to it that those displaced due to acquisition of land for the project would be relocated at a place convenient to them. The new company would also start vocational schools in the area to train students and absorb them in the facility.
The project would consist of integrated automobile manufacturing facilities which would include engine plant, transmission plant, press shop, body shop, paint shop and assembly line, an official press release here said, adding this would be India's biggest vehicle manufacturing centre at a single location. It would involve manufacture of 50,000 tractors per annum and there would be a Mahindra Research Valley in the Mahindra World City near Chennai.
The project would result in gross value addition of about Rs. 18,000 crores per annum to Tamil Nadu's GDP and the additional investment in the State by vendors and supporting service providers was expected to be about Rs. 10,000 crores. The new facility would provide direct employment to 5000 people and indirect employment to many more.
M&M and Renault already have an existing JV which is manufacturing the Logan brand of cars.
Read the articles in The Economic Times and Business Standard.
Highlights of The Economic Survey 2006-07
The Finance Minister of India Mr. P Chidambaram presented the Indian Economic Survey 2006-07 to the Parliament today. Major highlights of the survey are:
· GDP to grow 9.2%, touch Rs.. 2,844,000 crore in 2006-07
· Inflation at 6.7% (as on Feb 3) a matter of concern
· Government's top priority: Growth without high inflation
· Risks include volatile oil prices, delays in WTO talks, global macroeconomic imbalances
· Priorities include making growth inclusive, fiscal prudence, high investment improving government intervention in critical areas like education & health, subsidies to be targeted
· Agriculture to grow 2.7%, share in GDP dips to 18.5%
· Industry to grow at 10%, share in GDP up to 26.4%
· Services to grow at 11.2%, share in GDP rises to 55.1%
· 10th plan average GDP growth at 7.6% versus targeted 8%
· Average inflation in 52 weeks ending Feb 3 at 5%
· Food items, wheat, pulses, sugar driving inflation
· In industry, mining, gas and power issues of concern
· Current account deficit at $11.7 billion in H1 of FY07
· Exports up 36.3% to $89.5 bn in April-Dec 2006-07
· Capital flows strong, FDI up 98.4% in Apr-Sept 2006-07
· FIIs sellers in H1, but likely to be positive in H2
· Core sector growth 8.3% versus 5.5% in Apr-Dec 2006-07
· Infrastructure to require $320 bn in 11th plan
· Public sector to fund 60% of infrastructure
· Fiscal deficit budgeted at 2.8% in 2006-07
· Tax-GDP ratio rises to 11.2% FY07 versus 10.3% in FY06
· Personal income tax mop up rose 30.3% in Apr-Dec FY07
· Share of direct taxes in total revenues grows to 47.6%
· Stock markets buoyant, market cap rises to 91% of GDP
· Rs. 161,769 crore raised from IPOs in 2006
· Mutual funds raise Rs. 104,950 crores in 2006, up four-fold
· Corporate tax collections up 55.2% in Apr-Dec FY07
· Tourism earnings cross $6.6 bn in 2006
· Gross domestic savings rate up at 32.4% in 2005-06
· Gross domestic investment rate at 33.8% in 2005-06
· Gross fixed capital formation rises to 28.1% in 2005-06
· Savings of private corporates rise sharply at 8.1%
· High savings rate to continue
· Government final consumption expenditure up 11.5% in FY06
· Saving-investment gap turns negative at 1.3%
· Government to miss 2007 target of elementary education to all
· Employment rate grows to 2.5% in 1999-2005
· Decline in organized sector jobs
· Unemployment rate up to 3.1% in 2004-05
· Poverty down at 22% in 2004-05 versus 26.1% in 1999-2000
· Population to stabilize around 2045
Read more about the Economic Survey in The Economic Times.
· GDP to grow 9.2%, touch Rs.. 2,844,000 crore in 2006-07
· Inflation at 6.7% (as on Feb 3) a matter of concern
· Government's top priority: Growth without high inflation
· Risks include volatile oil prices, delays in WTO talks, global macroeconomic imbalances
· Priorities include making growth inclusive, fiscal prudence, high investment improving government intervention in critical areas like education & health, subsidies to be targeted
· Agriculture to grow 2.7%, share in GDP dips to 18.5%
· Industry to grow at 10%, share in GDP up to 26.4%
· Services to grow at 11.2%, share in GDP rises to 55.1%
· 10th plan average GDP growth at 7.6% versus targeted 8%
· Average inflation in 52 weeks ending Feb 3 at 5%
· Food items, wheat, pulses, sugar driving inflation
· In industry, mining, gas and power issues of concern
· Current account deficit at $11.7 billion in H1 of FY07
· Exports up 36.3% to $89.5 bn in April-Dec 2006-07
· Capital flows strong, FDI up 98.4% in Apr-Sept 2006-07
· FIIs sellers in H1, but likely to be positive in H2
· Core sector growth 8.3% versus 5.5% in Apr-Dec 2006-07
· Infrastructure to require $320 bn in 11th plan
· Public sector to fund 60% of infrastructure
· Fiscal deficit budgeted at 2.8% in 2006-07
· Tax-GDP ratio rises to 11.2% FY07 versus 10.3% in FY06
· Personal income tax mop up rose 30.3% in Apr-Dec FY07
· Share of direct taxes in total revenues grows to 47.6%
· Stock markets buoyant, market cap rises to 91% of GDP
· Rs. 161,769 crore raised from IPOs in 2006
· Mutual funds raise Rs. 104,950 crores in 2006, up four-fold
· Corporate tax collections up 55.2% in Apr-Dec FY07
· Tourism earnings cross $6.6 bn in 2006
· Gross domestic savings rate up at 32.4% in 2005-06
· Gross domestic investment rate at 33.8% in 2005-06
· Gross fixed capital formation rises to 28.1% in 2005-06
· Savings of private corporates rise sharply at 8.1%
· High savings rate to continue
· Government final consumption expenditure up 11.5% in FY06
· Saving-investment gap turns negative at 1.3%
· Government to miss 2007 target of elementary education to all
· Employment rate grows to 2.5% in 1999-2005
· Decline in organized sector jobs
· Unemployment rate up to 3.1% in 2004-05
· Poverty down at 22% in 2004-05 versus 26.1% in 1999-2000
· Population to stabilize around 2045
Read more about the Economic Survey in The Economic Times.
Monday, February 26, 2007
Alagappan Murugappan returns to ICICI Securities as head of equities
Alagappan Murugappan has re-joined ICICI Securities, the investment banking division of The ICICI Group as head of equities. Prior to this, he was with private equity firm Deeva Capital where he was a partner and returns to the ICICI fold after an overall three-year stint in private equity. Before he joined ICICI Securities, Murugappan was with Cazenove, heading its Indian operations; Cazenove was primarily into equities broking. Murugappan began his career with Cazenove in London after qualifying as a solicitor in England. He holds an LLM from Cambridge University.
Murugappan was one of the three founding partners of Deeva Capital and had spent one year at Deeva. Deeva Capital is a start-up private equity firm with about $100 mn secured from international seed funding. Murugappan had left ICICI Securities in early 2004 to pursue a career in the private equity business. Then, Murugappan had joined Actis as an investment principal and was responsible for leading and coordinating fundraising activities relating to South Asia and for deal generation in India. Murugappan quit Actis to form Deeva in early 2006.
Read more in the article in AsianInvestor.net.
Murugappan was one of the three founding partners of Deeva Capital and had spent one year at Deeva. Deeva Capital is a start-up private equity firm with about $100 mn secured from international seed funding. Murugappan had left ICICI Securities in early 2004 to pursue a career in the private equity business. Then, Murugappan had joined Actis as an investment principal and was responsible for leading and coordinating fundraising activities relating to South Asia and for deal generation in India. Murugappan quit Actis to form Deeva in early 2006.
Read more in the article in AsianInvestor.net.
EDS to buy Bangalore-based software testing company RelQ for $40 mn
Bangalore-based RelQ Software has finalized a deal worth $40 mn to be acquired by IT consulting major Electronic Data Systems (EDS). RelQ specializes in software testing, validation, verification and quality assurance. It has 800 people and posted revenues of $22 mn last fiscal. It is expected to record revenues of $30 mn in 2006-07.
RelQ will help the $21-billion EDS, which focuses on consulting, application management, maintenance, re-engineering, migration, technical support and testing, to ramp up its testing practice in India. EDS has over 17,000 employees here across varied verticals.
Read The Times of India article.
Related Post: Software testing company up for sale by stakeholders ICICI Ventures and Acer Technologies
RelQ will help the $21-billion EDS, which focuses on consulting, application management, maintenance, re-engineering, migration, technical support and testing, to ramp up its testing practice in India. EDS has over 17,000 employees here across varied verticals.
Read The Times of India article.
Related Post: Software testing company up for sale by stakeholders ICICI Ventures and Acer Technologies
Bennett Coleman picks up 5% stake in YOU Telecom
Bennett & Coleman Company Limited (BCCL), the holding company of the Times of India, has acquired a 5% stake in YOU Telecom India Private Limited for an undisclosed sum. YOU Telecom is India's first ISO 9001:2000 accredited broadband company. Citigroup Venture Capital International is already an investor in YOU Telecom.
AV Birla Group bids €85 mn for Italian fibre firm
The AV Birla Group has reportedly made a bid of close to €85 mn to acquire Italian cellulose fibre company BembergCell. Bemberg Cell is a financially distressed company and is on the block through a corporate administered process.
BembergCell has three production centres located in Italy with 155 spinning machines to produce yarns. BembergCell is the result of the union of three companies: Bemberg, Novaceta and Nuova Rayon. The company employs close to 400 people. The other bidders in the fray include a top manager of another Italian fibre company, Italo Fabbro, and Germany-based International Chemical Investor, promoter of the brand Erika.
Read The Economic Times article.
BembergCell has three production centres located in Italy with 155 spinning machines to produce yarns. BembergCell is the result of the union of three companies: Bemberg, Novaceta and Nuova Rayon. The company employs close to 400 people. The other bidders in the fray include a top manager of another Italian fibre company, Italo Fabbro, and Germany-based International Chemical Investor, promoter of the brand Erika.
Read The Economic Times article.
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