NEW DELHI, May 15: With continuing growth in local manufacturing, the Indian electronics market is expected to reach Rs 5 lakh crore by this year-end and Rs 20 lakh crore by 2020, Assocham today said.
In 2010, the electronics market was at Rs 3.25 lakh crore, the industry chamber said.
The industry could rise to such a volume if a strong push is given to domestic manufacturing, thereby bridging the demand-supply gap and generate mass employment in the country.
It called for fostering innovation and developing clusters for local production.
In recent years, high-volume imports of components and finished products have hampered the growth of electronics manufacturing base, said Assocham secretary general D S Rawat.
“There is need to create industrial clusters for fostering innovation and manufacturing domestically,” Rawat said.
The government needs to take quick steps to start developing an ecosystem which will attract manufacturing investments, he added. (PTI)

NEW DELHI, May 15: Driven by increased hiring activity in a majority of sectors, led social services, the overall job market improved in April, says a report.
Employment portal Monster.Com today said that NGO/social services sector continued to see high growth last month compared to the same month last year.
Similar trends were seen in healthcare, biotechnology and life sciences as well as pharmaceuticals sectors.
The Monster Employment Index, a monthly gauge of online job demand, rose to 129 last month from 124 in March. The index climbed by same rate as compared to April 2011.
Indicating better employment market conditions, 24 of the 27 sectors tracked by the index increased recruitment activity between April 2011 and April 2012.
NGO/Social Services saw an annual employment growth of 30 per cent, Monster.Com said.
“Though the pace of growth has moderated, sectors like healthcare, medical manufacturing, textiles, and even financial services have exhibited positive growth momentum,” Monster.Com’s Managing Director (India/ Middle East/ South East Asia) Sanjay Modi said in a statement.
However, production and manufacturing sector saw a five per cent drop in hiring activities, while the decline was as much as 12 per cent in government/PSU/defence area, it added.
“Kochi recorded (up 23 per cent) followed by Coimbatore (up 21 per cent) led all cities in annual growth,” the statement noted. (PTI)

NEW DELHI, May 15: In order to tackle the problem of scarcity of fuel at gas-based power stations and bringing down its average cost, private power producers have requested the government to pool domestic and imported natural gas.
“The dwindling KG-D6 production is likely to lead to gas based power plants running on PLF (plant load factor) of only 30 per cent by 2015, rendering them technically inoperable,” said Ashok Khurana, Director General, Association of Power Producers, in a letter (Dated May 11) to the Minister of Petroleum and Natural Gas S Jaipal Reddy.
PLF is the efficiency of a power plant.
“We have requested for gas pooling with the available domestic sources and imported R-LNG (re-gassified natural gas) which appears to be the only feasible solution to rescue the gas based capacity in the country,” Khurana said.
“Price arbitration benefit between domestic and imported gas sources would be brought about through pooling…It is imperative that the domestic gas prices are kept low and not increased in order to ensure that power costs do not increase any further,” he said.
The industry is of the view that the biggest challenge before power projects developers is to secure adequate and appropriately priced fuel to keep the power costs affordable.
The rupee depreciation has also had a direct increase of 35 per cent on the cost of gas-based power, thereby increasing power tariffs by around 44 paise per kilowatt hour, Khurana said.
This can have a significant impact on the various discoms in the country, which are already reeling under the impact of under-recoveries and poor financial situation, he added.
Association of Power Producers (APP) is a body representing the private power producers in the country. (PTI)

SYDNEY/BEIJING, May 15: Australia and New Zealand Banking Group said on Tuesday it would invest $300 million ($300 million) more to support growth in its China subsidiary as it seeks to boost its presence in Asia.
The additional investment is the first since an initial investment of A$395 million in 2010, the bank said in a  statement.
ANZ Chief Executive Officer Mike Smith said in Beijing the bank is on the verge of getting the green light to provide retail banking services in China, adding it also aims to offer wealth management services.
‘Wealth management and individual wealth products are definitely things we will look at in future,’ Smith  said.
China has about 85 trillion yuan ($13.5 trillion) worth of deposits, so deposit taking is a lucrative business for banks, especially since banks’ net interest margins are to a large extent protected by strict government  regulation.
But China’s tight control over its financial sector means local banks dominate the industry, with foreign banks accounting for just 2 percent of total banking assets in 2010, a survey by accounting firm KPMG showed.
ANZ’s latest investment comes as it tries to model itself after HSBC by turning into an Asian lender. It is seeking to earn 25 to 30 percent of its profit from Asia by  2017.
ANZ owns six outlets, in Beijing, Shanghai, Chongqing and Guangzhou, and it plans to increase its network to 20 outlets in the next 5 to 10 years. Smith said the bank is looking at starting new outlets in the eastern city of  Hangzhou.
‘The economic growth in China is still better than anywhere else in the world,’ Smith said.
ANZ owns a 20 percent stake in both Shanghai Rural Commercial Bank and Bank of Tianjin.     ($1 = 1.0020 Australian dollars) ($1 = 6.3215 Chinese yuan)          (agencies)

NEW DELHI, May 15: Corporates across the globe are significantly more interested in acquisitions than they were two years ago, and the same is true for India where 37 per cent of business leaders are planning M&As over the next three years, says a survey.
According to Grant Thornton, corporates who have successfully plotted their way through the global downturn are now seeking to invest the cash resources built up over a period of time on M&A activity.
The survey noted that of those companies seeking to expand through acquisition in the next three years, 33 per cent expect to do so through a cross-border transaction, a rise from 28 per cent in 2010.
With recent positive economic data from the US and impressive growth continuing to be experienced in the BRIC region, global economy is undoubtedly entering a new phase.
“…Enterprising corporates appreciate that M&A remains a vital strategic tool to enable them to benefit from these trends,” Grant Thornton International Global Service Line Leader – M&A Mike Hughes said.
The survey further reveals that the proportion of businesses seeking to grow through M&A, be it overseas or within their own market, has risen steeply over the past two years from 26 per cent in 2010 to 34 per cent in 2012.
“It is encouraging that enterprising corporates in mature markets appreciate that M&A remains a vital strategic tool to enable them to benefit from these trends,” Grant Thornton India Partner Munesh Khanna said.
In case of India, 37 per cent of biz leaders are planning a merger or acquisition over the next three years, while 29 per cent showed real enthusiasm to expand overseas.
“Acquisitive growth is very much on the agenda for Indian business leaders as they continue to focus on driving value,” Khanna added.
A region-wise analysis shows that North America, where 37 per cent business leaders plan to make an acquisition in the next three years, followed by UK & Ireland (36 per cent) and the BRIC economies (35 per cent).
In mainland Europe just 28 per cent of business leaders, indicated an interest in M&A activity in the coming three years, in Asia Pacific the figure stood at (25 per cent), and in particular companies in the troubled economies of Greece, Ireland and Spain it stood at 16 per cent.
“Although the Eurozone is less optimistic about the growth prospects of their own economies a large proportion of businesses within Europe are actively seeking opportunities abroad and expanding into higher growth markets such as the BRIC economies,” Khanna added. (PTI)

NEW YORK, May  15: Facebook has raised the price range for its initial public offering to USD 34-38 a share, which puts the valuation of the social networking site at about USD 104 billion, says a media report.
“Late Monday, the social network raised the price range for its IPO to USD 34 to USD 38 a share, from USD 28 to USD 35 a share, in a sign of investor appetite for the offering,” The Wall Street Journal reported citing a source.
Earlier this month, Facebook, in a regulatory filing, said it will sell 337.41 million shares and the initial public offering price will be between USD 28 and USD 35 per share. At this range, the company will be valued at between USD 77 billion to USD 96 billion.
However, as per the new price range, Facebook would be valued at USD 93 billion to USD 104 billion, the report noted.
Taking into account the top range of the stock price, Facebook is expected to raise about USD 12 billion through the IPO as against USD 11 billion projected earlier.
Facebook is expected to go public on May 18 and the stock will be listed on Nasdaq under the symbol ‘FB’.
Depending on the final value, the IPO would be one of the largest of a US firm on Wall Street, behind the 2008 offering of Visa (USD 17.8 billion) and General Motors in 2010 (USD 15.7 billion), according to Renaissance Capital.
It’s much anticipated IPO is expected to shadow that of other tech giants like Google which had raised USD 1.9 billion and valued the company at about USD 23 billion when it went public in 2004.
Facebook’s 27-year-old CEO Mark Zuckerberg is planning to sell 30.2 million shares. He plans to use the proceeds to cover taxes.
Other stockholders who would be offering shares include the social network’s early investors such as James Breyer of the venture capital firm Accel Partners, who’s offering 38.2 million shares. Goldman Sachs is unloading 20 per cent of its stake, or 13.2 million shares.
Zuckerberg would retain voting control of 58.8 per cent of the company after the IPO.
With 901 million users as of March 31, 2012, Facebook is the most popular social networking site in the world and a magnet for advertisers. (PTI)

NEW YORK, May 15: Avon Products Inc today said fragrance maker Coty Inc has withdrawn its proposal to acquire the beauty firm.
In a statement Avon said Coty withdrew its proposal last night.
On Sunday, Avon had said it would consider Coty’s latest purchase offer after consultations between its management, financial and legal advisors and respond within week.
Last week Coty had renewed its offer price to acquire the beauty firm for USD 24.75 a share. The deal size was understood to be about USD 10.7 billion.
At the same time, Coty had also stated that it would withdraw its offer by May 14 if Avon did not engage in discussion on the proposal.
The deal could have given Coty a greater access to emerging markets.
Last month, Avon rejected Coty’s original bid of USD 23.5 a share translating into a deal to USD 10 billion, saying the offer undervalued the company.
Avon, which is known for brands like Avon Color and Avon Naturals, has been facing operational and financial challenges.
The beauty firm, with an annual revenues of USD 11 billion, caters its products to more than 100 countries.
Avon had generated USD 222 million revenues from the Asia-Pacific region during the three months ended March 2012. (PTI)

Honda launches ‘Dream Yuga’; HMSI to rope in Akshay Kumar
GURGAON, May 15: Japanese two-wheeler major Honda today launched its second mass segment motorcycle ‘Dream Yuga’ in India priced at Rs 44,642 (ex-showroom Delhi).
The company’s wholly-owned subsidiary Honda Motorcycle & Scooter India (HMSI) also announced to rope in bollywood actor Akshay Kumar as a brand ambassador for the company.
“Honda retained the brand Dream as part of a global strategy that was first launched in 1949. This new bike is very economical with better mileage,” HMSI’s President and CEO Keita Muramatsu told reporters here.
Dream Yuga is powered by a 110cc engine, he added.
The company sells 110cc motorcycle CB Twister in the country.
The company, which sold 21.07 lakh motorcycles and scooters in India last fiscal, is aiming to sell 27.5 lakh units in 2012-13. (PTI)

NEW DELHI, May 15: Eleven firms including state-run GAIL (India) and Oil India have bid to buy stake in billionaire Mukesh Ambani’s privately owned firm Reliance Gas Transportation Infrastructure (RGTIL).
“There are five Indian and six foreign companies which have submitted expression of interest (EoI) for buying stake in the gas transportation company (RGTIL),” a source privy to the development said.
Gas utility GAIL and oil explorer OIL have submitted separate EoIs for the stake buy, which is being managed by J P Morgan, Citi and SBI Caps.
Other firms which have put in EoI may include NYSE-listed energy major Enbridge.
A company spokesperson declined to comment.
The source said the companies who have put EoI would visit data room of RGTIL and do a complete due diligence before making any financial bid.
RGTIL was originally a subsidiary of Reliance Industries Ltd (RIL) and was incorporated in March, 2003 to transport natural gas from eastern offshore gas fields to consumption centres. Two years later, it was transferred to Mukesh Ambani, Chairman of RIL.
It was said at that time that Ambani may sell stake in the company through an initial public offering (IPO) once RIL’s eastern offshore KG-D6 field hit peak volumes of 80 mmscmd.
But with KG-D6 output plummeting to less than 34 mmscmd, he wants to sell the gas pipeline business.
Industry sources said RGTIL earlier this month held a meeting of its shareholders in Jamnagar, where its registered office is located, to seek approval for the stake sale. The stake sale was approved at the meeting.
RGTIL operates a 1,396-km East-West gas pipeline. The 48- inch pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat ferries natural gas from KG-D6 fields. But the 80 million standard cubic meters per day capacity line is operating at less than half of its capacity as output from KG-D6 field has plummeted.
Relogistics Infrastructure Ltd (Relog), a subsidiary of RGTIL, has won government authorisation to lay Kakinada- Basudebpur-Howrah pipeline, Kakinada-Chennai line, Chennai- Bangalore-Mangalore pipeline and Chennai–Tuticorin line but work on these pipelines havent started because of uncertainty about availability of gas.
RIL is the operator of KG-D6 block with 60 per cent stake while UK-based BP Plc has 30 per cent interest. Canada’s Niko Resources owns the remaining 10 per cent.
While GAIL is nation’s largest pipeline utility by capacity, with a network of 8,500 km, OIL is keen on entering the gas business. (PTI)