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India's foreign direct investment (FDI) in May 2010 rose by 5.6 per cent to US$ 2.21 billion as compared to US$ 2.09 billion in the corresponding month in 2009.
We are happy to report that India's biggest and the world's eighth largest airport terminal, the Terminal 3 at Indira Gandhi International Airport (IGIA) in New Delhi was inaugurated by Prime Minister Dr Manmohan Singh and UPA Chairperson Mrs Sonia Gandhi on July 3, 2010. This is a significant milestone in the infrastructural developmental projects and progress in the country. |
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| Warm regards, |
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Aparna Dutt Sharma
CEO
India Brand Equity Foundation |
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Focus: New Base Rate Regime |
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The switch to the base rate system, from benchmark prime lending rate (BPLR), was implemented from July 1, 2010. The new regime is expected to bring greater transparency into the banking system.
State Bank of India (SBI), the country's biggest lender, has fixed its base rate, or the minimum rate at which it will lend to borrowers, at 7.5 per cent and has set a benchmark for other banks to follow.
Furthermore, small borrowers are likely to be benefitted from the new regime, according to a recent report released by CRISIL Research. Also, commercial papers, the money market instruments to raise funds of less than a year, are also are set to gain popularity with banks shifting to the new base rate regime. | |
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Focus: Mergers and Acquisitions |
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One of the biggest domestic mergers and acquisitions (M&A) deals was announced recently by Reliance Communications (RCOM) with GTL Infrastructure to create one of the world's largest independent telecom tower company with an enterprise value of Rs 50,000 crore (US$ 10.83 billion) and 80,000 towers. The merged entity is likely to derive substantially higher tenancy ratios, besides scale benefits and operational synergies.
In a recent M&A deal, Nakoda Ltd, a fully drawn yarn segment manufacturer, has signed an asset purchase agreement with South Korean polyester fibre manufacturing firm, Kyunghan Industry Company Ltd, for the acquisition of their entire manufacturing facilities at Kyunghan for an investment of US$ 40 million. The company expects to further invest over Rs 1,500 crore (US$ 320.7 million) to raise its capacity in India and for future overseas acquisitions. | |
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Interview: Jacques Michel, CEO and Country Manager, BNP Paribas, India, on the bank's plans for India |
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"In the last few years, we have invested more than half a billion euros. We have a 26% stake in our life insurance JV with SBI. We have a partnership with Geojit for retail and wholesale brokerage, with Sundaram we have four JVs—one in asset management, in home finance and two in securities services and fund administration. Securities services are very important for BNP Paribas globally and we have set up a business process offshoring hub in Chennai, which provides services to Asia. We also have a partnership with Srei in equipment leasing/finance and we also have BNP Paribas Real Estate with local partners.
It is important to keep in mind that out of the 85 countries, where BNP Paribas has a presence, only very few countries have been designated by our top management as being of strategic importance. And India is one of them. As a strategic country, we have priority in terms of resources—both capital and human." | [More] |
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Interview: Wilfried Aulbur, MD and CEO of Mercedes-Benz, India, on company's entry into pre-owned car business in India |
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"We have invested Rs 200 crore revamp our sales and dealership network throughout the country to give truly global sales and service experience to Indian customers which is at par with any developed markets like the US or Germany.
We are initially starting with four dealers currently—Delhi, Mumbai, Chennai and Ahmedabad—which would be extended to all our outlets by next year." | [More] |
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| Policy/Corporate Briefs |
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| FDI rises by 5.6 per cent in May 2010 |
| The foreign direct investment (FDI) in May 2010 for the country rose by 5.6 per cent to US$ 2.21 billion as compared to US$ 2.09 billion in the corresponding month in 2009. |
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| India's biggest terminal inaugurated |
| Prime Minister Dr Manmohan Singh and UPA Chairperson Mrs Sonia Gandhi inaugurated, India's biggest and the world's eighth largest airport terminal, the Terminal 3 (T3) at Indira Gandhi International Airport (IGIA) in New Delhi on July 3, 2010. |
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| SEBI eases lending disclosure norms for FIIs |
| Securities and Exchange Board of India (SEBI) said that the foreign institutional investors (FIIs) will now have to disclose information on Indian securities lent by them to overseas entities (for the purpose of short selling) on a weekly rather than a daily basis. |
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| 'Indo-Lanka trade to grow at 8%' |
| The bilateral trade between India and Sri Lanka is estimated to post a growth of about 8 per cent in 2010, according to Mr Prasad Kariyawasam, Sri Lankan High Commissioner. |
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| Australia keen on scientific research with India |
| Senator Kim Carr, Australia's Innovation Minister has announced that the Australian Government would provide Rs 11 crore (US$ 2.4 million) for nine joint projects through the 4th round of the Indo-Australian Science and Technology Fund. |
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| Pharma business to double in 2 years, says AIOCD |
| All India Organisation of Chemists and Druggists (AIOCD) has projected a growth of over 100 per cent for the pharmaceutical industry in the country over the next two years. |
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| Eredene Capital bags Rs 1,436 cr port project |
| UK-based Eredene Capital PLC has won a bid in a consortium to build and operate the container terminal at Ennore Port at an estimated cost of Rs 1,436 crore (US$ 308.8 million). |
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| Alcatel-Lucent to make India its global services headquarters |
| Franco-American telecom equipment maker, Alcatel-Lucent, plans to shift its global services headquarters to India in a bid to leverage the market and resources available here. The company will invest US$ 500 million over the next three years in India, if the global services unit is moved here. |
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