http://www.business-standard.com/common/storypage.php?autono=280413&leftnm=1&subLeft=0&chkFlg=
P R Sanjai / Mumbai April 8, 2007
The US-based private equity firm Texas Pacific group, among three others, is in talks with country’s second largest airline Air Deccan for picking up a minority stake.
Sources said the low fare airline is planning to raise around $100 million by diluting 5 to 7 per cent stake to private equity players. Air Deccan has mandated Edelweiss Capital for raising funds which would be utilised for expansion.
“Edelweiss has shortlisted three to four players who are willing to invest in Air Deccan. A deal is likely to be signed in next 10 days. Among four players, Texas Pacific has emerged as aggressive player,” the sources said.
Texas Pacific, which has made investments in airlines globally, had dropped its plans to invest $30 million in the Delhi-based budget carrier SpiceJet owing to differences in valuation.
A senior Air Deccan executive declined to comment on the issue.
Operating 43 aircraft, Air Deccan has the largest network in India covering 61 airports, plying over 300 flights a day.
As on December 31, promoters of the airline hold 22.13 per cent of stake, while the public, including the ICICI Venture-promoted India Advantage Fund-1 with 14.22 per cent and the UK-based Investec Bank with 1.96 per cent, holds remaining stake.
SpiceJet has raised nearly Rs 300 crore from private equity firms, while the Chennai-based Paramount Airways managed to get over Rs 80 crore. Meanwhile, the Vijay Mallya-promoted Kingfisher Airlines and Jet Airways are in talks with private equity for raising funds.
08 April 2007
Indiapost hiring aircraft to service metros, North-East
http://www.zeenews.com/znnew/articles.asp?aid=364617&sid=NAT
New Delhi, April 08: Taking on the challenge posed by private courier companies in offering quality and quicker services, Indiapost has decided to hire aircraft from national carrier Indian to service North-Eastern states and metros. Aircraft will be taken on lease basis from Indian Airlines, which will serve during the day in the North-Eastern states and in the night time will cater to the needs of metro cities like Delhi, Chennai, Mumbai to begin with both for speed and ordinary post, a senior official of the DoP (Department of Post) told. North East not being as conveniently connected to other parts of the country, the postal delivery service is usually delayed and difficult. DoP plans to address this problem by hiring the aircraft. The initiative to check the falling market share does not stop at that with the department planning to establish call centres with national toll-free number initially in the metros. Later on, the service will be expanded to all cities. India Post call centers will act as nodal points for getting information and delivery status and also offer collection of parcels from customers' residence or place of work, the official said. Speed post, the premium mail service from DoP is also bracing up for competition. Bureau Report
New Delhi, April 08: Taking on the challenge posed by private courier companies in offering quality and quicker services, Indiapost has decided to hire aircraft from national carrier Indian to service North-Eastern states and metros. Aircraft will be taken on lease basis from Indian Airlines, which will serve during the day in the North-Eastern states and in the night time will cater to the needs of metro cities like Delhi, Chennai, Mumbai to begin with both for speed and ordinary post, a senior official of the DoP (Department of Post) told. North East not being as conveniently connected to other parts of the country, the postal delivery service is usually delayed and difficult. DoP plans to address this problem by hiring the aircraft. The initiative to check the falling market share does not stop at that with the department planning to establish call centres with national toll-free number initially in the metros. Later on, the service will be expanded to all cities. India Post call centers will act as nodal points for getting information and delivery status and also offer collection of parcels from customers' residence or place of work, the official said. Speed post, the premium mail service from DoP is also bracing up for competition. Bureau Report
Opportunity for Thai airlines in India's northeast
http://www.bangkokpost.com/070407_Business/07Apr2007_focus06.php
ASIA FOCUSTax-free incentives to be offered to SMEs
Umesh Pandey
A senior Indian cabinet minister visited Bangkok recently to publicise a set of economic incentives aimed at boosting Thai investment in India's impoverished northeast.
Mani Shankar Aiyar, who is in charge of development for India's northeastern states, said that the unprecedented package would be revealed in full at the end of the month.
India's Northeast comprises eight states with a population of about 38 million. Although one of India's poorest areas, the northeast is rich in natural resources including oil, gas and coal. It is also plagued by violence, with numerous insurgency groups operating in the area.
The minister urged Thai companies to invest in infrastructure, adding that over the next five years, the Indian government will invest about $12 billion to develop roads in India's northeast.
Mr Aiyar said that the government would forge joint ventures with companies interested in developing the region.
"I first came to Bangkok in 1968, and Bangkok now is far different from the Bangkok then. I want to see Thai people perform the same miracle in these states as they have done to this country and the market will yield the reward for their efforts," he said.He also urged Thai companies to invest in tourism in India's Northeast, saying that government efforts to improve roads and airstrips were an opportunity for Thai tour operators and airlines. The incentives are set to be approved later this month.
The incentives would be in place until 2027, and are aimed at new investors, or companies that expand existing operations in the Northeast. Among the features are exemptions from excise and income tax and access to state subsidies.
"All of this is going to make the region virtually a tax-free zone for investments, but companies eligible for most of the subsidies have to be small and medium-sized industries," he said.
© Copyright The Post Publishing Public Co., Ltd. 2006Privacy PolicyComments to: WebmasterAdvertising enquiries to: Internet MarketingPrinted display ad enquiries to: Display AdsFull contact details: Contact us
ASIA FOCUSTax-free incentives to be offered to SMEs
Umesh Pandey
A senior Indian cabinet minister visited Bangkok recently to publicise a set of economic incentives aimed at boosting Thai investment in India's impoverished northeast.
Mani Shankar Aiyar, who is in charge of development for India's northeastern states, said that the unprecedented package would be revealed in full at the end of the month.
India's Northeast comprises eight states with a population of about 38 million. Although one of India's poorest areas, the northeast is rich in natural resources including oil, gas and coal. It is also plagued by violence, with numerous insurgency groups operating in the area.
The minister urged Thai companies to invest in infrastructure, adding that over the next five years, the Indian government will invest about $12 billion to develop roads in India's northeast.
Mr Aiyar said that the government would forge joint ventures with companies interested in developing the region.
"I first came to Bangkok in 1968, and Bangkok now is far different from the Bangkok then. I want to see Thai people perform the same miracle in these states as they have done to this country and the market will yield the reward for their efforts," he said.He also urged Thai companies to invest in tourism in India's Northeast, saying that government efforts to improve roads and airstrips were an opportunity for Thai tour operators and airlines. The incentives are set to be approved later this month.
The incentives would be in place until 2027, and are aimed at new investors, or companies that expand existing operations in the Northeast. Among the features are exemptions from excise and income tax and access to state subsidies.
"All of this is going to make the region virtually a tax-free zone for investments, but companies eligible for most of the subsidies have to be small and medium-sized industries," he said.
© Copyright The Post Publishing Public Co., Ltd. 2006Privacy PolicyComments to: WebmasterAdvertising enquiries to: Internet MarketingPrinted display ad enquiries to: Display AdsFull contact details: Contact us
Soaring above the maddening crowd
Thursday, March 08, 2007 12:24:00 AM
Permission to reprint or copy this article or photo must be obtained from DNA INDIA.
Chinese spike: China will slash steel capacity by 35m tonnes
Ajoy K Das
KOLKATA: China has approved a plan to eliminate 30 million tonne of iron making capacity and 35 million tonne of steel making this year and shut down steel mills with a total capacity of 100 million tonne of iron production by 2010.
This is part of a package of measures endorsed by the National People’s Congress, the Chinese Parliament, to rein in growth to around 8% in 2007, from 10.7%, last year. In other words, the Indian government may have coaxed domestic steel producers to rollback prices this month in its inflation fight, but next time, if it fails to do so, blame it on China.
China has also reduced steel export rebate to 5% from 11%, stoking price fires globally. Spot prices of benchmark hot rolled (HR) coils have spurted in both, the US and Europe.
In the US, HR coil prices are up $10 per tonne at $590 and in the EU, it is up $30 per tonne to $623 per tonne, in anticipation of tightening of supplies in global markets in the wake of Chinese checks on overproduction and exports.
And all these fast-moving dynamics of global steel markets, promising steel prices another bull orbit, are leaving a very big Hobson’s choice for Indian steel companies. They can ignore government ‘wishes’ of holding price line at pricing committee meetings, of respective steel producers, in first week of April and get to ride the next bull run.
Or companies maintain domestic prices and watch rising potential from export realisations as international prices surge ahead of Indian price of steel.
But then Indian exports of steel is just 4 million tonne of total production of 40 million tonne. And steel producers are in no position to ramp up production, ignoring interest of long-term domestic customers and evoking government ire once again in case of shortages in domestic markets.
A highly placed official of Steel Authority of India Ltd (SAIL) said, “Every aspect of steel production in India has global linkages. If pricing is cut off from it, margins can remain positive only for a very short time.”
“Take rising cost of imported inputs. SAIL projects coking coal imports in 2006-07 at 9.49 million tonne compared with 7.4 million tonne imported in 2004-05. If domestic steel prices are not linked to international markets and not factor in the higher input costs like coking coal, either margins turn negative or there is a subsidy to compensate for shrinking difference between cost of production and selling price. And here we are not even talking of generating surplus to fund all mega-capacity creation plans,” officials said.
A senior official from the Union steel ministry said, “The government’s has little room to move in influencing prices in a decontrolled regime. It has used its power of persuasion once. But cannot expect such powers to be effective in face of global trends.”
Industry analysts quoting China National Bureau of Statistics said that fixed asset investment in steel projects slowed down in 2006 to $29 billion, down 2.5% over previous year.
According to reports in The Economist, the Chinese government is moving to rein in Olympics-fuelled property and construction boom to prevent a hard landing of the economy. But despite this, steel demand is poised to grow 13% in 2007.
The country’s National Bureau of Statistics projects that production cuts and rising demand will turn China ‘s 43 million tonne of steel exports to negative.
Simply put, this will make the dragon a net importer once again - that’s another bullish element in the global markets that Indian producers may not ignore when its time for the next pricing strategy.
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© 2005-2007 Diligent Media Corporation Ltd. All rights reserved.
Permission to reprint or copy this article or photo must be obtained from DNA INDIA.
Chinese spike: China will slash steel capacity by 35m tonnes
Ajoy K Das
KOLKATA: China has approved a plan to eliminate 30 million tonne of iron making capacity and 35 million tonne of steel making this year and shut down steel mills with a total capacity of 100 million tonne of iron production by 2010.
This is part of a package of measures endorsed by the National People’s Congress, the Chinese Parliament, to rein in growth to around 8% in 2007, from 10.7%, last year. In other words, the Indian government may have coaxed domestic steel producers to rollback prices this month in its inflation fight, but next time, if it fails to do so, blame it on China.
China has also reduced steel export rebate to 5% from 11%, stoking price fires globally. Spot prices of benchmark hot rolled (HR) coils have spurted in both, the US and Europe.
In the US, HR coil prices are up $10 per tonne at $590 and in the EU, it is up $30 per tonne to $623 per tonne, in anticipation of tightening of supplies in global markets in the wake of Chinese checks on overproduction and exports.
And all these fast-moving dynamics of global steel markets, promising steel prices another bull orbit, are leaving a very big Hobson’s choice for Indian steel companies. They can ignore government ‘wishes’ of holding price line at pricing committee meetings, of respective steel producers, in first week of April and get to ride the next bull run.
Or companies maintain domestic prices and watch rising potential from export realisations as international prices surge ahead of Indian price of steel.
But then Indian exports of steel is just 4 million tonne of total production of 40 million tonne. And steel producers are in no position to ramp up production, ignoring interest of long-term domestic customers and evoking government ire once again in case of shortages in domestic markets.
A highly placed official of Steel Authority of India Ltd (SAIL) said, “Every aspect of steel production in India has global linkages. If pricing is cut off from it, margins can remain positive only for a very short time.”
“Take rising cost of imported inputs. SAIL projects coking coal imports in 2006-07 at 9.49 million tonne compared with 7.4 million tonne imported in 2004-05. If domestic steel prices are not linked to international markets and not factor in the higher input costs like coking coal, either margins turn negative or there is a subsidy to compensate for shrinking difference between cost of production and selling price. And here we are not even talking of generating surplus to fund all mega-capacity creation plans,” officials said.
A senior official from the Union steel ministry said, “The government’s has little room to move in influencing prices in a decontrolled regime. It has used its power of persuasion once. But cannot expect such powers to be effective in face of global trends.”
Industry analysts quoting China National Bureau of Statistics said that fixed asset investment in steel projects slowed down in 2006 to $29 billion, down 2.5% over previous year.
According to reports in The Economist, the Chinese government is moving to rein in Olympics-fuelled property and construction boom to prevent a hard landing of the economy. But despite this, steel demand is poised to grow 13% in 2007.
The country’s National Bureau of Statistics projects that production cuts and rising demand will turn China ‘s 43 million tonne of steel exports to negative.
Simply put, this will make the dragon a net importer once again - that’s another bullish element in the global markets that Indian producers may not ignore when its time for the next pricing strategy.
#footer {width:100%;clear:both;border-top:1px solid #dddddd;background:#f6f9fc;#dee7f0;#f0f0f0;text-align:center;padding:10px 0 10px 0;margin-top:10px;font-size:80%;color:#444444;}
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© 2005-2007 Diligent Media Corporation Ltd. All rights reserved.
