NEW DELHI, Jan 12: The power ministry is expected to finalise the Cabinet note by this month-end on the proposal of hiving-off POSOCO, an arm of state-run Power Grid Corporation, into a separate entity.
It is awaiting a response from the Finance Ministry’s EFC (Expenditure Finance Committee) before moving the Cabinet.
“The proposal will go to EFC and then we will go to the Cabinet for clearance. The entire exercise is likely to be done by the end of January,” an official in the Ministry of Power told reporters.
EFC will discuss the proposal at a meeting that will be attended by the representatives from the Power Ministry as well as the Planning Commission.
“Once it (proposal) is vetted by EFC it will go to the Cabinet,” the official said, adding that EFC will mainly look into the financial aspects of the proposed company.
Power System Operation Corporation Ltd is a wholly-owned subsidiary of central transmission utility Power Grid Corporation.
The proposal aims at providing greater autonomy to POSOCO.
Senior Director at Deloitte India, Debasish Mishra told reporters: “Typically the system operator in any liberalised power market is an independent entity. This ensures impartial operation of the system.
“In India, Power Grid Corporation has been the transmission utility as well as system operator.”
As India has a significant number of private transmission utilities, it is important that their roles are separated and POSOCO is made an independent entity, he added. (AGENCIES)
Power Min’s Cabinet note on POSOCO to be finalised this month
Pharma cos to witness 26% core sales growth in Q3: BoAML
MUMBAI, Jan 12: Pharmaceutical sector may witness a core sales growth of 26 per cent in the third quarter of FY 2014 Bank of America Merrill Lynch said in a report.
“We expect growth momentum for the pharma universe to sustain with core sales growth of 26 per cent, EBITDA growth of 37 per cent and PAT growth of 40 per cent. Revenue growth will largely be driven by continued momentum in the US, strong growth in RoW markets, higher currency realisation (up 14 per cent YoY), and strong margin traction will drive bottom line growth in Q3,” the report said.
“On the domestic front, after two quarters of dismal performance due to trade channel disturbances, we see some recovery in volume with double-digit growth for the quarter. Core EBITDA margins are likely to expand by 180 BP (basis points) to 23.8 per cent, driven by higher contribution from niche launches, improved product mix, and currency benefits,” it said.
BoAML said it sees strong base business growth at Sun, Dr Reddy, Lupin and Aurobindo Pharma. The increasing number of limited-competition products is rendering higher sustainable growth to the base business.
“We see continued accretion from limited competition/complex products including Lipodox and Doxycycline of Sun Pharma, Tricor and Zymaxid of Lupin, Vidaza, and Dacogen of Dr Reddy. We believe incremental launches in niche segments will continue to drive growth in the ensuing quarters,” it said.
While a price cut on NLEM (National List of Essential Medicines) products will impact margins in the domestic business, most firms have already hiked prices on non-NLEM products and hence margin compression will be limited to a few large affected players, DSP Merrill Lynch (India) Research Analyst Manoj Garg said.
The core margins are expected to expand by 180 basis points to 23.8 per cent in the third quarter. “Despite low contribution from domestic market, we expect core operating margins to expand by 180 basis points to 23.8 per cent, led by higher contribution from niche launches, improved business mix, and favourable currency. We see strong margin expansion for Dr Reddy (up 300 basis points year-on-year) and Aurobindo Pharma (up 330 basis year-on-year),” Garg said.
“We see strong traction in Sun Pharma, Dr Reddy, Lupin and Aurobindo, while Ranbaxy, Glenmark and Cadila will have moderate performance during the quarter. On Cipla, we expect improvement in both top and bottom line because of the low base effect and consolidation of Cipla Medpro and expect operating leverage to kick in in the next 1-2 quarters,” the report said. (AGENCIES)
Walmart wants mandatory local sourcing level reduced to 15 pc
NEW DELHI, Jan 12: US retail giant Walmart has asked the government to reduce the mandatory local sourcing norm to 15 per cent, saying it cannot meet the stipulated level required to open multi-brand stores in India.
“The company had said that it cannot meet the mandatory 30 per cent sourcing norm and can procure only about 20 per cent from small units. But it has asked to reduce it to 15 per cent,” sources said.
Walmart’s demand comes after the Government diluted the contentious sourcing clause last year to allow foreign multi-brand retailers that want to set up stores in India to procure 30 per cent of their products from small and medium enterprises only at the of start of business.
The Department of Industrial Policy and Promotion (DIPP), though, has clearly conveyed to Walmart that the Government will not ease this clause, the sources said.
A Walmart India spokesperson said: “We continue to study the feasibility of the FDI policy and remain steadfast in our belief in the important value Walmart brings to India.”
“Walmart is committed to India and the market. We are pleased with our established and successful cash-and-carry business and plan to grow that business,” the spokesperson added.
The foreign direct investment policy for multi-brand retailing requires at least 30 per cent of the value of manufactured and processed products procured to be sourced from Indian small industries at the first engagement.
Several global retailers had raised concerns about the sourcing restriction.
The Government allowed 51 per cent FDI in the multi-brand retail sector in September 2012. Only UK-based retailer Tesco has so far applied to open supermarket chains in India.
In October, Walmart and Bharti Enterprises ended a six-year partnership after agreeing to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business. (AGENCIES)
FIIs pour in over Rs 3,500 cr in debt mkt
NEW DELHI, Jan 12: Overseas investors have pumped in over Rs 3,500 in the Indian debt market so far in January, when the US Federal Reserve is scheduled to start reducing its monthly bond purchases by USD 10 billion.
Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 8,155 crore and sellers of bonds to the tune of Rs 4,609 crore till January 10, resulting in a net inflow of Rs 3,546 crore (USD 572 million), according to Sebi data.
FIIs also invested Rs 545 crore in the equity market. Their total investment in debt and equity was about Rs 4,091 crore.
According to market experts, FIIs inflow in debt market is returning on account of some stability observed in foreign exchange and interest rates.
The US Federal Reserve decided to taper its monthly bond-buying programme, raising concerns that funds available for investing in emerging markets may be reduced.
Starting this month, the US central bank will cut its bond purchases to USD 75 billion from USD 85 billion, according to a statement after the Federal Open Market Committee meeting on December 18.
In 2013, overseas investors pulled out a net amount of Rs 50,847 crore (USD 8 billion) from the bond market in 2013, while they infused a net Rs 1.13 lakh crore (USD 20.10 billion) in equities.
As of January 10, the number of registered FIIs in the country stood at 1,724 and the total number of sub-accounts was at 6,400. (AGENCIES)
Evok aims Rs 200-cr revenues by 2015 through expansion drive
NEW DELHI, Jan 12: Home and interior decor firm Hindware Home Retail Ltd, which has an interior decor store chain under the brand name ‘Evok’, is aiming to have a turnover of Rs 200 crore by the end of fiscal 2014-15.
HHRL, which is a subsidiary of HSIL also plans to expand total numbers of stores to 35 across the country from its existing 17, said Evok COO Ajay Seth.
“By the end of fiscal 2014-15, we are targeting to have a turnover of around Rs 200 crore. We would also increase our presence to 35 locations from the present 17,” said Ajay Seth to reporters.
Out of that 10 to 15 stores would be on the franchise model which would sell modular kitchen and modular wardrobes and rest would be the company owned.
Moreover, the company would also invest around Rs 35 crore in capex for expansion of the chain, he added.
The company reported turnover of Rs 80 crore in last fiscal. The company expects that the turnover of financial year 2013-14 would be between Rs 125 to Rs 135 crore.
Its main business includes living solutions, modular kitchens and wardrobes and entertainment solutions.
“We are planning to expand in the Western and Eastern region. The company would soon have a stores in Patna, Kolkata and Guwahati next financial year,” he said, adding that in the first quarter of 2014-15, Evok would open stores at Ahmedabad and Noida.
According to Seth, “Evok is targeting only the premium segment of the buyers and not from the luxury segment. Our customer bases includes urban, semi urban and middle class families.”
The company also plans to expand in tier 2 and tier 3 cities. As per its future outlook, tier 1 stores would be company owned, while stores in tier 2 and below would be on the franchise model.
“For next five years we have a target of adding 10-15 stores every year, in which 5 to 6 would be company owned and rest would be on franchise model,” Seth said.
EVOK has 17 stores pan India in which 15 are large format stores with floor area of 10,000 sq ft onwards and two small format stores.
The company sources its furniture from globally from Malaysia, China, Europe and India and modular kitchens from Europe and domestic suppliers.
It has two warehouse located at Bahadurgarh and Bhivadi. (AGENCIES)
Posthumous donation of organs
Speaking at an event in Raj Bhavan in Kolkata, President Pranab Mukherjee touched upon an important subject towards which less attention has been paid by the civil society. It is the subject of people making will that after their death some of their organs and tissues be donated to be implanted to the ailing persons so that they recover health. There are some organs about which philanthropic people make a will that these be donated. We have a large number of patients in the country who could regain their health if some of their defective limbs were replaced. Unfortunately there is lot of unawareness and superstition in our society which hinder donation of limbs and tissues after death. Spain has the highest number of donation will which is about 35 per cent while we in India have barely 0.02 per cent. There is great need of educating the people to shun superstition and make the will for donating limbs and tissues. Doctors believe that there are at least 35 such parts of the body as a man with dead brain can donate. But owing to lack of knowledge it does not materialize. There has been some movement in regard to making appeals for donation of eyes but the response is negligible. We would say that awareness campaign has to be undertaken to make the society responsive. This can be done by social activists, NGOs and even by doctors through lecture series.
Hotels looking to rationalise employee-to-room ratio
MUMBAI, Jan 12: The hospitality industry is seeking ways to reduce payroll costs and rationalise employee-to-room ratio, said a report.
“With rising manpower costs, the higher ratio is posing a problem. Hence, companies are now seeking ways to rationalise employee-to-room ratio and cut down on payroll costs, which will improve operational efficiency,” said ‘HVS-FHRAI Indian Hotel Industry Survey 2012-13’.
The report said the employee-to-room ratio in India is almost twice the global benchmarks.
The average employee-to-room ratio in the country is 1.6, as hotels provide services and facilities beyond their positioning, it pointed out. Effective manpower management training in multitasking would help, it said.
Effective training accompanied by growth opportunities for existing employees would act as sound retention policy.
“This will also help stabilise costs over time, as companies need not incur fresh costs in hiring.”
The data for the Federation of Hotel and Restaurant Associations of India (FHRAI) Indian Hotel Survey 2012-13 has been contributed by the member hotels of FHRAI. FHRAI has 2,505 hotels as members, of which 1,450 responded.
In 2012-13, it said, the country experienced a slowdown in growth across sectors, despite which hotels maintain occupancy levels at 60.4 per cent (60.9 per cent in 2011-12).
Some of the major cities across the country witnessed a growth of 11 per cent in hotel room supply during 2012-13, while demand increased 9.2 per cent.
However, the average rate declined 3.6 per cent compared to 2011-12.
Food and Beverage (F&B) and the Banquets & Conferences department continue to give greater contribution, recording a year-on-year increase of 17.4 per cent. (AGENCIES)
Hasina, cabinet to be sworn in after deadly Bangladesh polls
DHAKA, Jan 12: Prime Minister Sheikh Hasina and her new cabinet are set to be sworn in today after Bangladesh’s controversial polls marred by deadly clashes, a low turnout and a boycott by opposition parties.
Hasina’s Awami League clinched a landslide victory in the parliamentary election on January 5, bagging 231 seats in the face of a boycott of the polls by the BNP-led 18-party opposition alliance.
The new cabinet is expected to have 30 members but Hasina is likely to drop several ministers of the outgoing Government for poor performance or corruption, according to reports.
On January 9, 66-year-old Hasina was unanimously elected as leader of the Awami League Parliamentary Party.
At least 21 people were killed in poll-related violence during the “one-sided” elections. Most voters had preferred to stay home during the January 5 polls in 147 out of 300 constituencies in 59 districts.
Awami League won 231 seats, of which 127 seats were uncontested, giving it a clear three-fourths majority in the country’s 10th parliament.
The 18-party alliance led by former premier Khaleda Zia’s Bangladesh Nationalist Party (BNP) boycotted the polls after her arch-rival Hasina rejected the opposition’s demand for a neutral caretaker regime for election oversight. (AGENCIES)
N Korea slams ‘militarist maniac’ Japanese PM
SEOUL, Jan 12: North Korea today lashed out at Japan’s hawkish prime minister for seeking to revise Tokyo’s pacifist post-World War II constitution, calling Shinzo Abe a “militarist maniac”.
In a New Year comment Abe said the country’s constitution – which limits its military to self-defence – could be amended by 2020, days after his visit to a controversial war shrine in Tokyo enraged Asian neighbours.
China and South Korea see the Yasukuni Shrine as a brutal reminder of Japan’s war-time aggression and failure to repent for its history.
The visit also angered the North, which last month slammed the conservative Japanese leader of “reckless behaviours” that would push Japan into “self-destruction”.
The North’s ruling party newspaper, the Rodong Sinmun, on today heaped further criticism on Abe for the New Year message, warning that Tokyo’s leaders should “behave themselves”.
“What Abe said was dangerous outbursts which brought to light the true colours of a militarist maniac,” it said in an editorial.
Accusing the prime minister of seeking to “bring back the era… When the Japanese imperialists could dominate Asia”, the paper claimed that Tokyo was taking the path of “self-destruction”.
“If the present ruling forces of Japan have even an iota of reasonable thinking, they should face up to the reality and behave themselves,” it said.
The communist state has habitually slammed Tokyo for failing to repent for its 1910-45 occupation of the Korean peninsula and what it calls Japan’s rising military ambitions.
The North’s nuclear and missile programmes have raised longstanding security concerns in Japan, which last month announced it will boost its military budget, spending USD 240 billion between 2014 and 2019 to buy fighter jets and other military hardware.
The move drew a typically angry response from the North, which called it a “crafty and sinister attempt to justify Japan’s arms build-up and reinvasion scheme”. (AGENCIES)
Provincial President NC, Devender Singh Rana addressing public gathering at Thannamandi on Sunday.
Provincial President NC, Devender Singh Rana addressing public gathering at Thannamandi on Sunday.