Decoding Business Growth: Havells' success mantras

Decoding Business Growth jointly hosted by CNBC-TV18 and ICICI Securities takes a close look at some of the most successful companies in India across different industries.

Decoding Business Growth jointly hosted by CNBC-TV18 and ICICI Securities takes a close look at some of the most successful companies in India across different industries.

The underlying objective of this new series is to demystify and decode the success mantras of these companies so that it becomes a ready reckoner for  those who want to enter the business world or becomes lessons for those already in business.

For complete show, watch accompanying videos.

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SBI Life divestment likely in Q1FY16; no plans for IPO: SBI

As of now the bank has no plans to sell more than 10 percent stake and is not considering an initial public offering (IPO) immediately for SBI Life,said VG Kannan, MD, SBI.

State Bank of India 's Executive Committee has approved divestment in SBI Life up to 10 percent. Speaking on it, VG Kannan, MD, SBI said the divestment is likely to happen in first quarter of FY16 and would bring down SBI's stake in SBI Life to 64 percent from the current 74 percent.
 
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74  percent of the total capital and BNP Paribas Cardif the remaining 26 percent. SBI Life Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.

Cardiff has shown an inclination to buy the stake but it has not yet been decided how much stake would be given to them, said Kannan. Cardif has the first right of refusal.

Although the exact valuation hasn't been done, a back of the envelope calculation of the10 percent stake sale amounts to around Rs 2500 crore, said Kannan.

He said the bank had no plans to sell  more than 10 percent stake for now and is not considering an initial public offering (IPO) immediately for SBI Life. The IPO may likely be announced in a year or two, he added.

Interview transcript to follow

SBI stock price

On March 31, 2015, at 09:20 hrs State Bank of India was quoting at Rs 267.75, down Rs 0.15, or 0.06 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 186.74.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.12. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.69.

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India to become 3rd largest auto manufacturer by 2020: Ford

India's automotive industry is expected to reach 7 million vehicles milestone by 2020, making the country the third-largest auto manufacturer in the world, behind the US and China, a top official at Ford Motor has said.

India's automotive industry is expected to reach 7 million vehicles milestone by 2020, making the country the third-largest auto manufacturer in the world, behind the US and China, a top official at Ford Motor has said.

The automotive sector has a direct bearing on the economy with a near 7 percent contribution to the GDP, playing an important role in the development of other crucial sectors as well, David Dubensky, President and Managing Director, Ford Motor Private Ltd, said here today.

Addressing the students at the graduation function of the Kumaraguru College of Technology, Dubensky said India is one of the largest automobile manufacturers in the world and as the country moves towards this milestone, the opportunities to build a career in the automotive sector are tremendous.

He said by working together as one global team over the last 110 years, Ford been able to fully leverage the resources around the world.

"We are building great products, creating strong business, and contributing to a better world", he added.

Advising students to be open, flexible and willing to learn, even if the lesson is a hard one, Dubensky said, "Bring people together, and work together, for something bigger than yourself."

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HDFC pitches for greater govt, investment in education

Terming spending on education as abysmally low at 3 percent of GDP, eminent industry leader Deepak Parekh called for "aggressive" investments by the government as well as corporates in the sector, saying it is the key to unlock India's demographic dividend .

"For a country like India, spending on education is abysmally low at 3 percent of GDP. India has one of the youngest populations in the world and effective investment in education will determine how well the population is educated and this in turn will enhance the productivity of the demographic dividend," Parekh said as the financial sector conglomerate headed by him launched its first school named HDFC School here.

"Though the allocation for the education sector has gone up progressively in the past decade, there is still a need that the Indian government and private sector invest aggressively in education sector going forward.

"There is a lot of innovation that can be brought into the education space and with this initiative, HDFC aims to create a visible impact on schooling system," he added.

Parekh, Chairman of HDFC Ltd , said the group's education initiative is an answer to the question "Why can't equal opportunities be provided to all Indians to secure quality education for their children leading to better careers and better lives?"

"A school is a first step in a student's entire life cycle. With a simple motto of 'Educate, Excel and Empower', HDFC School seeks to set an example of best practices in education," he said after inaugurating the school.

The school is becoming functional with academic year 2015-2016 under the leadership of eminent educationalist and academician Anita Makkar.

While the school has started its primary wing, taking admissions from pre-nursery to grade III this year, it is also in the process of setting up a 5 acre campus for its higher secondary wing.

Intended to be a nursery to grade 12 school in time, it will follow the National Curriculum Framework 2005, and will be affiliated to CBSE.

Renu Sud Karnad, Managing Director, HDFC Ltd, is leading HDFC's foray in the education sector.

"Of the total schools in India, only 8 percent are privately run but they account for 40 percent of total students enrolled in schools.

"This demand supply mismatch suggests that more privately-owned ethically run institutions can bring about a positive influence in the development of Indian school segment," she said.

"With the launch of HDFC School, we are starting with some baby steps to build an education organisation which has a philosophy of providing high quality education to all.

"HDFC has played a pioneering role in housing finance with the focus of enabling the Indian middle class to own their home. Entry in the education sector will enable HDFC to provide access to quality and finest education in the country," she added.

"The HDFC School will focus on academics, and at the same time seek to develop well-rounded students, who will flourish in a pluralistic society. It is our endeavour to develop responsible young global citizens," Makkar said.

HDFC Ltd is India's leading mortgage lender with cumulative housing loan disbursements of over Rs 5,00,000 crore over the last 37 years.

HDFC has emerged as a financial conglomerate by promoting a bank, insurance company (for life and general), an asset management company, a real estate venture capital company, a realty firm and an education finance company.

The HDFC group has an asset base of over Rs 10 trillion and a customer base of over 55 million.

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Airtel, RCom gain capability for 4G service across country

Reliance Communications made bids worth Rs 4,299 crore and is required to make an upfront payment of Rs 1,106 crore.

Bharti Airtel  and Reliance Communications  (RCom) have gained capability to provide 4G services across the country as they bagged requisite spectrum in the recently concluded spectrum auction.

RIL's telecom arm Reliance Jio already has pan-India 4G spectrum.

"RCom becomes India's first and only operator with nationwide footprint of contiguous 800/850 MHz spectrum. RCom operations now future-proofed across all circles for most advanced LTE technology at most optimal cost," the company said in a statement.

Airtel, the country's leading telecom operator, in a statement said, "Post the latest spectrum acquisition, Bharti Airtel's spectrum mix will give it unmatched reach in the mobile data segment across 3G and 4G with a pan-India footprint."

The telecom firm now directly holds spectrum for 3G service in all parts of the country, except in Kolkata.

Reliance Communications made bids worth Rs 4,299 crore and is required to make an upfront payment of Rs 1,106 crore.

The company won 800 MHz spectrum in 11 service areas, but could not defend its 900 MHz spectrum holding in five out of seven circles expiring in 2015-16.

However, RCom spectrum holding in 800 Mhz in some parts of the country cannot be used to offer 4G service as the matter is sub-judice or to start 4G service using those airwaves it will have to pay one-time spectrum fee of Rs 173 crore demanded by government.

Reliance Jio has also added two sets of spectrum-800 Mhz in 10 circles and additional 1800 Mhz in six circles, to boost its 4G services with stable voice calling service.

Bharti Airtel stock price

On March 27, 2015, Bharti Airtel closed at Rs 376.20, down Rs 22.5, or 5.64 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 299.80.

The company's trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 13.15. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.25.

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Multiples PE to invest at faster pace over next 2-yrs: CEO

Talking about the investment cycle in India, Multiples PE is basically a sector agnostic fund and looks at opportunities in each and every sector, says managing director and chief financial officer, Prakash Nene.

Multiples Alternate Asset Management Private Limited (Multiples) is an investment advisory firm that manages more than USD 400 million of Private Equity Funds. Multiples believes there are three ingredients to successful investing in India – careful selection based on conviction in the entrepreneur and opportunity; finding a solution beyond just providing capital; and mutual selection between the entrepreneur and the fund.

Multiples PE is now coming out with a second fund which is a 10-year fund with commitment amount of USD 650 million to be invested in 5-year time frame. However, they would be aggressively investing in the first two years on back of hopes that the Indian economy is now turning around, says Nene.

We are quite positive about the changes which are being made on the economic front. There are many incremental changes which are taking place and that is very heartening," adds Nene.

Althought the fund is sectors agnostic, spaces banking financial insurance (BFSI), e-commerce, healthcare will continue to be most attractive sectors, says Nene.

Below is the transcript of Prakash Nene's interview with CNBC-TV18's Kritika Saxena.

Q: Multiples PE since 2010 till date has been a roaring success if you compare it to the other domestic funds. You have raised USD 300 million funds which have been deployed already. How has the growth been given the fact that investing climate has been slightly slow ever since you setup. How have you been able to retain the investment pace and get the kind of success that you have gotten already?

A: We started in 2010 and the fund is slight bigger than what you thought because the dollar has depreciated otherwise we started with USD 400 million commitment. In terms of pace of investment we have been doing investment on a steady basis every year. We have a very strong investment team and lot of us came from another private equity venture and everybody is very experienced. So, we know the game and after all with all this whatever you do ultimately there has to be some external factors also which lead to success. So, we have to be very careful about where do you invest. In fact when you say our pace investment has been good, to begin with our pace of investment was very slow. We were very measured, our first investment took about a year to make.

Thereafter we really gathered pace because the team has to come together. Once the team came together that is how we started going forward at a faster pace.

Q: In your first fund what were your focus areas in terms of the average ticket size that you are looking at and the sectoral focus?

A: We are sector agnostic fund. We look at opportunity in each and every sector. In terms of verticals we look at certain percentage – 10-15 percent for early stage companies and rest of the companies are later stage companies. Our bias is towards later stage companies because our ticket size will be larger than early stage companies. So, USD 30 million would be our ticket size in the first fund. Obviously in the second fund it will be larger than that.

Q: Let us talk about your second fund; USD 500 million is the amount that you are looking at raising. What is the process and by when will you start deploying that? The fund amount is larger than what your other peer, which have seen average of USD 150-300 million, so what really according to you would be the focus areas and do you feel that now that this is a larger fund you would have a larger investment power to invest over the next couple of years?

A: First of all USD 500 million would be the main fund. We also have another vehicle. So, our total amount available for commitment will be USD 650 million. So, we would be deploying USD 650 million which is the target of this fund. We would be deploying that in just a matter of time now, we already have lot of commitments from our core investors. They are all coming back with larger tickets, so we have a number of documents already with us. We are just waiting to do a formal close.

Q: Typically, USD 650 million, roughly across how many year do you see that spanning out or rather the majority investment, would it be a 5 or 10 year timeframe?

A: Technically, the fund is a 10-year fund but what we call as commitment period, the commitment period would be about 5 years. So, 5 year is the timeframe where most of the investment will be made. However thereafter as well once you invest in a company there is a follow-on investment. The companies keep needing money from time to time and it is not that after 5 years company will not require any money. So, you set aside some amount 10-15 percent for follow-on investments beyond 5 years.

For the first 5 years normally we invest at a steady pace. It is not that you have to just divide by 5 and every year you invest USD 120 million. Our bias would be more towards the early years. So, the first couple of years we perhaps would be investing at a faster pace than the earlier year because we are quite positive that the economy is now turning around.

Q: Since 2010 till 2014 things were fairly difficult but the new government came in and we have seen things turn on ground. We have been talking about how the ease of doing business is now one of the top priorities for the government and how there is a pickup in the reform cycle. Do you feel that foreign investors are now looking at India differently and more positively in 2015 than they did in the last two years?

A: Absolutely. I would not say the last two years, I would say year before 2014, the pace of investment all of us know was very slow and things were pretty gloomy. However last year has been a decent year I would say. In the private equity sector I think about 400-450 deals have happened and the capital deployed is about USD 11 billion, which is a sizeable sum which was deployed. Exits have also improved now. Last year we had about USD 4-5 billion of exits and I think that pace will continue.

We are quite positive about the changes which are being made on the economic front. There are not too many what they call big bang changes, lot of people expect that suddenly things will be different and that doesn't happen but I would say there are many incremental changes which are taking place and that is very heartening. We believe that the government's policies are moving in the right direction. However once you change a policy there is some time lag once the economic activity picks up. So, on the ground the economic activity especially in manufacturing sector is yet to pickup, it is slowly picking up but certain other sectors things have started moving faster. So, we are looking very positively, the next two years that is the reason I said that perhaps the pace of investment which we are going to make in the next couple of years will be faster.

Q: Let us talk about taxation in that case; in the Budget this time around the government has created a big positive for the PE industry by allowing tax pass throughs. How significant is that for PE players and for Multiples PE?

A: I would say that pass through is one of the things which the domestic industry was looking forward to and which has now been granted. It is definitely positive for the industry. However what happens is that what you do at one place, you do something else in another place. What has been introduced in this Budget is something called Place of Effective Management (P.O.E.M). In the speech the Finance Minister has said that they are encouraging Indian fund managers like us to really manage foreign money without going abroad. Many of our colleagues have moved abroad simply from that angle.

Place of effective management is considered if you are based in India and if you are managing money in Mauritius or in other jurisdictions and those funds are called resident in India. If those funds are resident in India then they are not eligible for what is called treaty benefits. So, that is one clause – P.O.E.M has come.

Government has created what they call safe harbour rules. Safe harbour rules mean certain sectors of the economy and certain fund managers would be excluded. However what I find that most of those changes which have been made they are for FIIs – foreign institutional investors. Government has not looked very carefully as to what are the requirements of a fund manager who is not an FII but using FDI money.

FII is a regulated concept under Sebi but most of the funds especially private equity funds are not of that type. We typically will have 5-25 investors and not hundreds of investors. So, when you say that no single investor can have more than 10 percent in a company and all of us have an anchor investor which will be more than 10 percent. So, in that situation we will be excluded then you say 5 investors put together cannot own more than 10 percent and you cannot do a buyout.

Even in our first fund we own a company which is completely owned by us – 100 percent and buyout is a very important concept for a private equity. When a policy framework is made this is something which looks like inadvertently it has not been taken into account and I am quite hopeful that before the Budget is finally approved I think there will be some changes on this.

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Posco seeks refund from Odisha rail line undertaking

South Korean steel giant Posco has sought refund from a rail line undertaking to be set up in partnership with Odhisa government citing change in company law but said it wasn't pulling out from the USD 12 billion steel project in the state.

"For railway (SPV we) cannot continue keeping deposit any further due to changed company law," Posco India Spokesperson IG Lee said.

Posco had joined hands with the state government along with SAIL, Rail Vikas Nigam and other players in 2006 to form a Rs 590 crore special purpose vehicle (SPV) for development of a 78-km long Paradip-Haridaspur rail line in Odhisa. 

Denying reports that the company is pulling out from the multi-billion project in the state, he said: "We are still on Odisha project. Money refund is not for the steel plant land. Rail Infra refund is as per the changed company law last year."

Lee also said six employees have "voluntarily" resigned and denied it was any sign of Posco pulling out from the project.

The steel maker's proposed USD 12 billion project at Jagatsinghpur district in Odisha for producing 12 million tonne per annum (MTPA) is viewed as the largest FDI in India.

It has, however, been stalled for about a decade on account of regulatory hurdles, including delays in land acquisition.

Posco had entered into a pact with Odisha government on June 22, 2005 for the plant, which included iron ore mine development.

However apart from the delays, in a fresh blow to the company, last month the Centre said the company would be required to participate in auction to get iron ore mines to feed its facility instead of direct allotment as assured earlier.

Steel Minister Narendra Singh Tomar had said that the company, which was assured Khandadhar iron-ore mine via dispensation route will have to participate in the auction process to get a mining lease.

Posco was previously promised the Khandadhar iron ore mine by the state for its mega steel plant, considered as the biggest FDI in India, but the actual allocation never happened due to delays in regulatory approvals.

Although the company has a memorandum of understanding with the Odisha government that assured allocation of mining leases, the passage of a Bill in Parliament that made allocation of all mines through auction route only, the agreement with the state will have no value.

In 2013, Posco had scrapped the 6 MT steel project in Karnataka over land and mineral hurdles. The Odisha project was also scaled down to initial 8 MT after it failed to acquire the desired quantity of land.

Last month POSCO had inaugurated a USD 709 million steel mill in Maharashtra to scale up its presence in the country.

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Vedanta files claim notice against govt under UK-India BIT

Billionaire Anil Agarwal-led group said it will take "all necessary steps" to protect interest against the tax notice on Cairn India.

After Cairn Energy of UK, London- listed Vedanta Group has slapped a notice of claims against the Indian government challenging the Rs 20,497-crore tax imposed on its subsidiary using retrospective legislation.

Billionaire Anil Agarwal-led group said it will take "all necessary steps" to protect interest against the tax notice on Cairn India . The group filed the notice against I-T Department move to impose Rs 20,497 crore in taxes and penalties on Cairn India for allegedly failing to deduct tax on capital gains made by its former parent Cairn Energy while doing a business reorganisation seven years back.

Cairn Energy had in 2006-07 transfered its India assets including the giant Rajasthan oil fields to a new company, Cairn India and got it listed on stock exchanges. It sold major shareholding in Cairn India to Vedanta in 2011. "...

Vedanta's Board of Directors has instructed counsel to file a notice of claim against the GoI under the UK-India bilateral investment treaty (BIT) in order to protect its legal position and shareholder interests," Vedanta said in a filing to the London Stock Exchange.

"If enforced, such tax demand would have serious consequences for Cairn India and therefore Vedanta's investment in Cairn India," the metal, mining and oil major said. Indian government has also made a parallel tax demand on Cairn UK Holdings, for which the Edinburgh-based company has sought arbitration and is seeking compensation under the UK-India Investment Treaty.

Vedanta said the claim notice was the first step required prior to commencement of international arbitration pursuant to the BIT. The company has been advised by leading international counsel that the retrospective tax legislation passed is a violation of protections accorded to investors under the BIT and constitutes a serious impairment of the treaty rights of Vedanta, it said. "Vedanta and Cairn India will continue to take all necessary steps to protect their interest and the interest of their shareholders," it added.

Cairn Energy of the UK also recently sought compensation from the Government of India for the loss in value it suffered due to an "unfair and arbitrary" Rs 10,247 crore tax demand raised using a retrospective tax law. Cairn argued that the imposition of capital gains tax on transfer of its India assets to Cairn India was not only contrary to relevant legal standards but unjust because it was an internal transaction and no shares or assets were sold to any third party to make any capital gains.

Cairn India stock price

On March 27, 2015, Cairn India closed at Rs 215.55, down Rs 7.5, or 3.36 percent. The 52-week high of the share was Rs 385.00 and the 52-week low was Rs 214.60.

The company's trailing 12-month (TTM) EPS was at Rs 21.98 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 9.81. The latest book value of the company is Rs 206.66 per share. At current value, the price-to-book value of the company is 1.04.

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India is long-term story, island of growth in EMs: Reckitt

New launches are going to play a big role in Reckitt Benckiser's growth and the company is betting big on the government's Swachh Bharat programme.

India is the only island of growth amongst the emerging markets, that's how the CEO of Reckitt Benckiser, describes India and though he doesn't see the country growing in high double-digit over the next two years, Rakesh Kapoor is indeed very bullish on the country and says the global FMCG giant is in for the very long haul.

New launches are going to play a big role in the company's growth and it is betting big on the government's Swachh Bharat programme.

Kapoor said India's story is not about a quarter or even a year, it is a very long-term story and companies that have a very long view on India will make the right choices and make India a very important part of their business as indeed we want to make.

"Just a few years ago everyone was super excited about Brazil, Russia, India and China (BRIC). Everyone thought BRIC was the answer to economic challenges in the west but just a few years later Brazil is in a very tough place, Russia for both I would say political reasons but also economic reasons is not the same high profile economic growth that we have seen so in that context India becomes quite an island of growth for many companies. India remains very important not just for its own structural demographic and economic reasons but also in the context of global growth," he added. 

Kapoor further said that the Association of Southeast Asian Nations (ASEAN), which has headquarters in markets like Singapore, Indonesia will revert to Singapore through the ASEAN regional headquarters.

"In the past India was reporting into ASEAN which was reporting into our developing markets headquarters but now we have brought India straight line into reporting into developing markets headquarters so India actually has gone up, not gone down in the hierarchy if you want to measure it like that but India of course is, has been and will be a very important force of growth for RB," said Kapoor.

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Excise duty cut in Budget gives fillip to leather industry

The leather footwear industry in Chennai seems all set to take some big strides. With the Budget reducing excise duty on leather shoes, manufacturers who were catering primarily to export markets, are now gearing up to take advantage of the big local opportunity. Jude Sannith gets us this report from Tamil Nadu's leather hub, Ranipet.

The leather footwear industry in Chennai seems all set to take some big strides. With the Budget reducing excise duty on leather shoes, manufacturers who were catering primarily to export markets, are now gearing up to take advantage of the big local opportunity. Jude Sannith gets us this report from Tamil Nadu's leather hub, Ranipet.

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Australia's IAG to up stake in SBI Gen Ins from 26% to 49%

SBI General Insurance joint venture partner IAG Group will increase its stake in the company from 26 percent to 49 percent, SBI MD VG Kannan told CNBC-TV18.

SBI General Insurance joint venture partner IAG Group will increase its stake in the company from 26 percent to 49 percent, SBI  MD VG Kannan told CNBC-TV18.

The move comes close on the heels of the Parliament approving legislation that allows foreign investors to hold a little under majority stake in Indian insurance companies.

Kanan, however, did not divulge details about valuations of the deal, adding its contours were still being worked out.

IAG had picked up 26 percent stake in SBI General Insurance for Rs 542 crore.

Analysts expect foreign inflows of about Rs 80,000-90,000 crore in the next three years to come into the Indian insurance sector as a result of the government's decision to allow higher FDI but say most deals will likely be in the life insurance space.

SBI stock price

On March 26, 2015, at 09:24 hrs State Bank of India was quoting at Rs 264.80, down Rs 0.55, or 0.21 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 174.27.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 15.94. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.67.

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Revenue Department releases list of 18 tax defaulters

The companies include Blue Information Technology having a tax arrear of Rs 75.11 crore, Appletech Solutions (Rs 27.07 crore), Jupiter Business Ltd (Rs 21.31 crore) and Hirak Biotech (Rs 18.54 crore), according to the list released by the Central Board of Direct Taxation. All these firms are based in Ahmedabad.

The Revenue Department on Wednesday released a list of 18 entities, including Gujarat-based Somani Cement, that have allegedly defaulted on tax payments and asked them to clear the arrears immediately.

The companies include Blue Information Technology having a tax arrear of Rs 75.11 crore, Appletech Solutions (Rs 27.07 crore), Jupiter Business Ltd (Rs 21.31 crore) and Hirak Biotech (Rs 18.54 crore), according to the list released by the Central Board of Direct Taxation. All these firms are based in Ahmedabad.

The other Ahmedabad-based companies which figured in the defaulters list include Icon Bio Pharma & Healthcare Ltd (Rs 17.69 crore), Banyan & Berry Alloys (Rs 17.48 crore), Laxminarayan T Thakkar (Rs 12.49 crore).

The Surat-based companies which are mentioned in the list include Virag Dyeing & Printing (Rs 18.57 crore), Poonam Industries (Rs 15.84 crore), Kunvar Ajay Food Pvt Ltd (15 crore). Somani Cement has tax arrears of Rs 27.47 crore.

The other companies in the list include Jaipur-based Goldsukh Trade India (Rs 75.47 crore), Kolkata-based Victor Credit & Construction (Rs 13.81 crore), Mumbai-based Noble Merchandise (Rs 11.93 crore). The list also include legal heir of Pune-based G K Dharne involving a tax default of Rs 38.31 crore.  

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Audi enters North East India, eyes 200 units in first year

Audi India had sold 10,851 units in 2014 and remained the largest luxury carmaker for the second consecutive year.

The country's largest luxury carmaker Audi entered the North Eastern market by opening its first dealership in Guwahati, which is expected to sell 150-200 units in the first year.

"We enter a new place only when we see there is a market for us. We expect to sell a minimum of 150-200 units in the first year," Audi India Head Joe King told PTI.

The new dealership in the capital city of Assam will offer the entire range of Audi vehicles and has already registered sale of 50 units so far, he added.

"We are the first luxury carmaker to enter this market and we will definitely get the first mover's advantage," he said.

The company, in association with the dealer, may consider organising some rally or drive in North East like other parts of India to promote the brand in future, he added.

Talking about the Eastern region, King said the company is targeting to sell 2,500-3,000 units this year in West Bengal, Bihar, Jharkhand, Odhisa and North East.

Earlier this month, the company had stated that it was focusing on long-term sustainability of its business in India while maintaining the top slot.

"The important part is the foundation that we are building to ensure long-term leadership of Audi in India and not just rather looking at monthly volumes and competition, Member of the Board of Management of Audi AG Luca de Meo had said.

Audi India had sold 10,851 units in 2014 and remained the largest luxury carmaker for the second consecutive year. The maker of various popular brands like Q5 sports utility vehicle and A3 sedan also wants to maintain a bigger presence in the premium luxury segment. 

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Nokia may be allowed to sell Chennai mobile plant

Government may allow Finnish telecom firm Nokia to sell its Chennai plant with a condition that the money realised will be kept in escrow account till final verdict is out on its Rs 21,000 crore tax dispute.

"The Prime Minister (Narendra Modi) took initiative to resolve Nokia factory issue so that mobile manufacturing can be restarted in its Chennai plant," a source told PTI.

An inter-ministerial panel was formed in this regard and Central Board of Direct Taxes (CBDT) has agreed to the proposal of allowing sale of plant and deposit realised amount in escrow account, the source added.

On March 3 in Parliament, Modi has indicated that the Tamil Nadu-based Nokia plant, which shut down a few months ago, is likely to start functioning again.

The inter-ministerial panel set up in this regard included Department of Revenue, Department of Industrial and Policy Promotion (DIPP) and Department of Electronics and IT. CBDT was part of the discussions.

The assets of Nokia Chennai plant have been frozen by the Income Tax Department and the next hearing in the Nokia tax case is on April 6, when the resolution will be placed before the Supreme Court, the source said.

"There are three buyers who have shown interest in the plant but the deal can be finalised only after the court allows its sale," the source said.

The I-T Department says Nokia India and Nokia Corporation owe Rs 21,153 crore as total tax liability, including penalty, for the seven-year period from 2006 to 2013.

US software giant Microsoft acquired Nokia's mobile devices business for about USD 7.5 billion but kept the factory out of this deal due to tax dispute with Indian authorities.

The factory continued making handset under contract from Microsoft for a year after which the US firm terminated the manufacturing agreement following which Nokia suspended operation at the plant from November 1, 2014.

The mobile phone export from India crashed by 70 percent to Rs 2,450 crore in 2014, from Rs 11,850 crore in 2013 due to production getting affected at Nokia's Chennai plant as per a report of Indian Cellular Association. 

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CII releases guide for investment in US

It serves as a ready reference guide to not just Indian companies but to all those looking to expand their business in the US or enter the US as an investment destination, a media release said.

Aiming to facilitate more Indian investment in the US, a top non-government Indian organisation has released a one-stop guide book, which also serves as a ready reference guide to all those looking to expand their business in America.

The one-stop guide was released on Monday by Confederation of Indian Industry(CII). "Created at the request of our membership, the purpose of this report is to provide a 'first, one-stop guide' to companies as they evaluate the strengths of various US states and territories and decide where to put their investment dollars to work,"said CII director general Chandrajit Banerjee.

The report entitled, Business and Investment Climate in the United States: Local Economy, State Incentives and Growth Prospects, is an update to a report jointly released by CII and Select USA in 2011.

It serves as a ready reference guide to not just Indian companies but to all those looking to expand their business in the US or enter the US as an investment destination, a media release said. Providing a state-by-state view of the US, the report highlights the 'Top 10 reasons to Invest' as offered by all 50 US states and the US territories to businesses.

In addition, this report outlines the core and upcoming sectors of strength and growth in each state/territory, as well as some of the major tax and financial incentives being offered to attract and retain businesses. 

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Big Bazaar: Pioneer of modern trade revolution in India

Big Bazaar – a part of the Future Group has pioneered the modern trade revolution in India. It started with a staggering pace, aimed at getting the volumes required to offer the lowest prices to customers and it is not showing any signs of slowing down. Watch accompanying videos to look at the journey of Big Bazaar brand.

Big Bazaar – a part of the Future Group has pioneered the modern trade revolution in India. It started with a staggering pace, aimed at getting the volumes required to offer the lowest prices to customers and it is not showing any signs of slowing down. Watch accompanying videos to look at the journey of Big Bazaar brand.

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Easing of bad debt-to-equity norms to help fight NPAs: SBI

The decision of market regulator Securities and Exchange Board of India (Sebi) to allow lenders to convert part or all of their debt into equity in case of defaults will help banks reduce their bad assets, SBI MD P Pradeep Kumar said.

The decision of market regulator Securities and Exchange Board of India (Sebi) to allow lenders to convert part or all of their debt into equity in case of defaults will help banks reduce their bad assets, SBI  MD P Pradeep Kumar told CNBC-TV18's Latha Venkatesh and Sonia Shenoy.

"We had been requesting this for long," he said.

According to the decision taken at a Sebi board meeting yesterday, banks can now swap their bad debts for equity without adhering to strict guidelines that are usually outlined takeover, such as pricing equity at historical market price or tendering an open offer for minority shareholders.

The regulator said it would later publish an equity pricing formula for such conversions based upon face value or fair value instead of historical market price.

Below is the transcript of the interview on CNBC-TV18.

Latha: What does this mean for banks? Was this the one reason why you were not able to convert debt into equity and take over bad assets?

A: We have been requesting Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) for this enablement. The Sebi takeover code had a pricing for the conversion of our debts or interest into equity for listed companies as the higher of average of the last six months or the last fortnight. This we thought was not the right conversion price for debt or interest for stressed companies.

So, we had been requesting the RBI to intervene with Sebi for changing this formula which we thought was in the favour of the minority shareholders but not in the interest of the financial institutions.

We will have to see the fine print, what are all the details for the conversion but that is what I have seen is that it will be either at face value, at fair value. This will enable banks to convert in a stressed company to convert their debt or interest into equity.

SBI stock price

On March 23, 2015, at 09:20 hrs State Bank of India was quoting at Rs 278.35, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 167.35.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.76. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.76.

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India telecoms debt rises on record spectrum spend

India will net a record 1 trillion rupees (USD 16 billion) windfall from intense bidding for the country's latest spectrum auctions, but at the cost of sharply higher debts for telecoms operators and looming price hikes for nearly 850 million mobile subscribers.

Market leaders Vodafone, Bharti Airtel and Idea are fighting to retain existing licences in the contest, which is expected to conclude this week, while also picking up badly-needed new spectrum in a process complicated by the participation of billionaire Mukesh Ambani's new cash-rich Reliance Jio telecoms venture.

Also read: Unlimited data plans cost telecoms USD 45B in losses

Although the auction is ongoing, the battle for the most expensive and desirable spectrum has largely concluded, analysts say, following two weeks of frantic bidding that have made this the most expensive competition in Indian telecoms history, easily eclipsing earlier estimates of Rs 800bn (USD 13bn).

Both Bharti and Vodafone have previously attacked India's government for doing too little to help spectrum-starved operators, but industry figures said the leading players were likely to be satisfied with their spectrum hauls, if not the prices they had to pay to win them.

The UK's Vodafone, the second-biggest mobile group by revenue in India's market, is set to be the highest spender, investing around USD 4.9bn to guarantee it retained all its existing licences, according to broker India Infoline.

Idea and Bharti are likely to be the next biggest participants, spending about USD 4.7bn and USD 4bn respectively. Mr Ambani's Reliance Jio service, which is due to launch later this year, is investing around USD 2.3 bn, while Telenor of Norway has also tried to rejuvenate its struggling Indian division, spending roughly USD 750m.

The companies declined to comment until the auctions are formally concluded, but analysts said the record sums invested were now likely to leave Indian operators among the most indebted in Asia.

Also read: Vodafone CEO: We want to be 'Unilever of telecom'

"Debt servicing is going to go up and balance sheets will be stressed" said Romal Shetty, head of telecoms at KPMG India. The auctions would add close to 50 percent to the balance sheets of Indian telcos which already had cumulative net debt levels of around USD 40bn, he added.

Higher debts in turn are likely to mean sharp price rises in a country that pioneered ultra-cheap mobile calls to suit India's poorer mass-market, but where operators have recently struggled to sustain previous growth levels in the face of bitter price wars and regulatory battles.

"India has some of the most expensive spectrum in the world and not justified by the fact that India still has the cheapest tariffs in the world - prices have to go up," said Nitin Soni, a director at Fitch Ratings.

Also read: Get picky on emerging markets: Goldman Sachs

This year's auctions, which sold off a range of spectrum suitable for traditional voice and faster data services, are set easily to surpass India's most expensive previous contests, which raised USD 14.5 bn and USD 10 bn in 2010 and 2014 respectively.

The result may also now finally prompt a long-mooted market consolidation, according to Deepti Chaturvedi of broker CLSA, in a country that still boasts well over half a dozen major telecom companies.

"India is the last of the markets which is yet to see big consolidation, This auction the line which will accelerate that process," he says. "The market will be dominated by a small number of top payers." 

Bharti Airtel stock price

On March 23, 2015, at 09:20 hrs Bharti Airtel was quoting at Rs 382.65, up Rs 2.30, or 0.60 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 289.80.

The company's trailing 12-month (TTM) EPS was at Rs 28.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 13.37. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.29.

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Car sales growth to accelerate to 7% in FY16: Icra

The used car market has been a beneficiary of the declining interest in new car market, it said, adding other factors like entry of organised players, increasing awareness and financing option have also helped. "ICRA expects Indian used car market to outpace domestic new car sales growth in the near to medium term".

Improvement in customer sentiment and new model launches will push up car sales growth to up to 7 percent in FY16 and further to 8-10 percent the year after, rating agency Icra said on saturday.

"We expect growth momentum in domestic passenger vehicle industry to accelerate with 5-7 percent in FY16 and 8-10 percent growth thereafter," it said in a note. The expansion will be largely driven by an improvement in customer sentiment, which is correcting on lower cost of ownership because of fuel price corrections, and also the new launches which are in the pipeline, it said.

A sizeable chunk of the car sales is contributed by the first time buyers (FTB), whose purchase decision rests on the operating costs and macroeconomic factors. The number of FTBs declined to 37 percent in 2014, which witnessed a spurt in fuel prices and also headwinds on the macroeconomic front, from a high of 50 percent in 2012, the rating outfit maintained.

"Over the last one year, gradual decline in fuel prices (especially petrol), easing financing norms and overall improved customer sentiment have helped in return of FTBs (in car market) in the current fiscal." The small car segment, the FTBs' favourite, will witness improved volume traction, it said.

The used car market has been a beneficiary of the declining interest in new car market, it said, adding other factors like entry of organised players, increasing awareness and financing option have also helped. "ICRA expects Indian used car market to outpace domestic new car sales growth in the near to medium term".

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Glenmark barred by HC from selling its anti-diabetes drugs

A bench of justices S Ravindra Bhat and Najmi Waziri, while granting an interim injunction in favour of MSD, also said the price difference between the drugs of the two companies "is not so startling as to compel the court to infer that allowing Glenmark to sell the drug at depressed prices would result in increased access".

Indian pharma major Glenmark pharamceuticals  was on Saturday barred by the Delhi High Court from making, marketing or selling its anti-diabetes medicines on the ground that it had "prima facie" infringed the patent of US drug major Merck Sharp and Dohme (MSD).

A bench of justices S Ravindra Bhat and Najmi Waziri, while granting an interim injunction in favour of MSD, also said the price difference between the drugs of the two companies "is not so startling as to compel the court to infer that allowing Glenmark to sell the drug at depressed prices would result in increased access".

Glenmark's medicines, Zita and Zita-Met, cost 30 percent less than MSD's Januvia and Janumet, which is due to the customs duty paid by the US firm, the court said and added "no allegation has been made that MSD today sells its drugs at a relatively high price that hinders access to the drug".

"In the present case, given the size of the diabetes drug market in India and the sheer number of patients from all economic strata of society, demand for low-priced medicines will remain, rather than any distortion of demand, due to brand loyalty or a first mover's advantage to MSD," it said.

"A strong case can in some instances offset an equal balance of conveniences between parties. In this case, MSD has established a prima facie case of infringement,...," it also said.

The bench, however, allowed Glenmark to to sell the products in question which are already in the market (i.e. with its distributors, retailers etc.). "However, in compliance with the injunction granted in favour of the plaintiff/MSD – it shall not henceforth further sell, distribute or in any manner take any steps towards placing in the market the drug in question, Zita and Zitamet and such of the pharmaceutical products which are covered by the claim for interim injunction in the suit," it said.

It directed Glenmark to give a true and correct account of all stock of its anti-diabetes drugs in its factory as well as those which are in the market and permitted to be sold. 

Glenmark stock price

On March 20, 2015, Glenmark Pharma closed at Rs 830.90, down Rs 21.8, or 2.56 percent. The 52-week high of the share was Rs 879.05 and the 52-week low was Rs 546.60.

The company's trailing 12-month (TTM) EPS was at Rs 18.02 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 46.11. The latest book value of the company is Rs 107.12 per share. At current value, the price-to-book value of the company is 7.76.

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BSNL undertakes Rs 1,000 cr investment plan

State-owned BSNL has undertaken a Rs 1,000 crore investment plan which include launch of Skype facility and setting up of Wi-Fi hotspots at tourist places, a top official said on Friday.

State-owned BSNL has undertaken a Rs 1,000 crore investment plan which include launch of Skype facility and setting up of Wi-Fi hotspots at tourist places, a top official said on Friday.

"We have taken several measures. Only last week we began migration of landline customers to next generation service facility.

It will provide lot of services to customers. Second, we are experimenting with BSNL Skype. For the Wi-Fi hotspots, 14 centres in tourist places in South zone have been identified," BSNL Director N K Gupta said.

"These are the plans which I said entailing Rs 1,000 crore investments. It will take at least five to six months (to roll out)", he told reporters, after launching the fourth Internet Data Centre here established with datacentre infrastructure firm CtrlS. Currently, BSNL has set up such internet data centres in Ahmedabad, Faridabad and Hyderabad.

CtrlS will provide the infrastructure facility while BSNL will provide the bandwidth and space for the service. "This is part of revenue sharing between CtrlS and BSNL. It will be able to host services; can be used as software as a service and cloud computing", he said.

According to a company official, the service would be offered to corporates and companies like National Payment Corporaton Chennai office and Electronic Corporation of Tamil Nadu have evinced interest to avail the service.

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FTC passes final order in USD 4 billion Sun-Ranbaxy deal

US anti-trust regulator FTC has passed its final order settling charges that Sun Pharma's USD 4 billion deal to acquire Ranbaxy Laboratories could result in unfair business practices.

US anti-trust regulator FTC has passed its final order settling charges that Sun Pharma 's USD 4 billion deal to acquire  Ranbaxy Laboratories could result in unfair business practices.

Once consummated, the merger would create India's largest and world's fifth-biggest drug maker. In a statement, the Federal Trade Commission today said that following a "public comment period", it has approved a final order settling charges that the Sun Pharma-Ranbaxy deal would likely be anti-competitive.

As per the first order issued by FTC in January this year, Sun Pharma was required to divest Ranbaxy's interests in generic minocycline tablets to Torrent Pharmaceuticals , based in India. Torrent Pharma markets generic drugs in the US.

"Sun must also sell Ranbaxy's generic minocycline capsules to Torrent to enable Torrent to obtain regulatory approval for its tablets as quickly as Ranbaxy would have absent the deal," the release said.

In January, FTC had said that to address monopoly concerns, Sun Pharma and Ranbaxy have agreed to divest the latter's interests in generic minocycline tablets.

Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections.

Under the proposed settlement, Ranbaxy's generic minocycline capsule assets was to be acquired by Torrent Pharma.

In addition, Sun and Ranbaxy must supply generic minocycline tablets and capsules to Torrent until the company establishes its own manufacturing infrastructure, the first order had said.

"The proposed consent agreement effectively remedies the proposed acquisition's anti-competitive effects in relevant markets," FTC had said in January.

"Pursuant to the consent agreement and the order, the parties are required to divest all of Ranbaxy's rights and assets to generic minocycline tablets to Torrent," it had said.

India's fair trade watchdog CCI, in last December, had directed both companies to divest seven products as it found that the deal could hit competition in the Indian market.

Sun Pharma stock price

On March 20, 2015, Sun Pharmaceutical Industries closed at Rs 1027.10, down Rs 18.75, or 1.79 percent. The 52-week high of the share was Rs 1074.05 and the 52-week low was Rs 556.50.

The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 28.71.

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Brokers must put money for resolution plan to work: FTIL

Two days ago, the Bombay High Court quashed Financial Technologies ' plea against the Ministry of Corporate Affairs that sought to oust FTIL's board of directors and today the Company Law Board (CLB) has adjourned the matter till April 17.

FTIL on March 2 said that its board has unanimously opposed the MCA petition to CLB seeking "removal and supersession" of the FTIL board. The board also noted that since the company's four legal suits are sub-judice - including representative suit, fit & proper and writ petition filed opposing amalgamation of NSEL with FTIL, the petition by MCA is inequitable to seek replacement of the entire board.

Speaking on the ongoing tussle, Prashant Desai, MD & CEO of FTIL said that he believes resolution to the matter is a better alternative for clients and shareholders than slugging out a legal battle.

In an interview to CNBC-TV18, Desai said the company has to protect the interest of 63,000 shareholders and that the path of resolution is good for all the parties involved.

Making a fair proposal to resolve the matter, he said brokers need to chip in money for resolution plan to work.

Below is the transcript of Prashant Desai's interview with CNBC-TV18's Sajeet Manghat and Shereen Bhan.

Sajeet: Can you take us through the settlement which you are planning to do for the NSEL investors?

A: It is important to lay out the construct or the building blocks and the thought process behind the proposal that we have made to the government of India. We clearly had two paths, not just FTIL for everybody involved in this so called default crisis. The first path is a very clear path of conflict which everybody is currently going towards. There is a long tail there, you keep on fighting in a legal court of low. We do not when the real judgement comes out and whenever the legal proceedings decide whoever is the so called person responsible for what happened the person or the company will be punished. We believe there is a better alternative which is the resolution path. As FTIL, somebody who has to protect the interest of 63000 minority shareholders, we believe the path to resolution is a path where we believe it is good for everyone. It is good for the so called trading clients of NSEL who have to receive these payouts, it is good for the brokers, it is good for the government, it is good for the country per se and it is definitely good for the FTIL shareholders. So, we have clearly proposed this to the government considering the fact that all the concerned people over here will probably choose to look at the path of resolution and in that our basic construct has been to be fair, equitable, not just to FTIL and its shareholders but to everybody concerned. That is the assumption which we thought was right and we made this proposal. 

It is in line a very simple construct that we are putting, we believe that everybody will have to chip in if there is going to be a fair and just and equitable resolution. We are saying we are taking the lead. Some time back we had already put Rs 180 crore to take care of close to about 50 percent payments to about 7000 trading clients of NSEL. We are saying we will come and put another Rs 320 crore which takes our contribution to about Rs 500 crore. Our view and our very strong view is that brokers are equally party to this because you have to understand the privity of the contract. Trading client was with the broker we had nothing to do with those trading clients. For three years this trading client used the brokers to probably trade on the platform of NSEL. We somewhere believe these brokers are also now getting caught into this. We believe if the broker also with a resolution in mindset pitches in with their Rs 500 crore we will have close to about Rs 820 crore at the first instance.

Let me share with you what this Rs 820 crore does. At the first instance for all the trading clients who were to supposed to receive payouts of less than Rs 10 lakh every single person, 100 percent of them which is close to about 7000 trading clients get 100 percent of their money back.

For those trading clients who have to receive payouts between Rs 10 lakh and Rs 1 crore they will get 50 percent of the money that is owed to them. Then the second leg of our proposal is, that is the contribution from us and from the brokers, we believe that all of us are in sync, government of India, us, brokers, trading clients, let us all put all efforts that we have at our disposal and let us go ahead and recover this money from the defaulters.

If a sum of only Rs 1800 crore is recovered from the defaulters of the Rs 5600 crore of payin that they have to do, we believe that this will take care of 50 percent of the balance amount that one has to pay for all trading clients who are supposed to receive between Rs 10 lakh and Rs 1 crore. For all those who are so called ultra HNIs to have to receive more than Rs 1 crore they will also receive 50 percent. In effect 94 percent of trading clients will receive payouts where some of them will receive close to about 50 percent, some of them will receive about 100 percent.

Sajeet: There are two issues with this, one you haven't approached the brokers in this. Second, the question of number of investors is now in question because even NSEL is questioning the fact that of the 7500 investors which were supposed to be paid out in the first where you brought in Rs 179 crore they can only trace about 3500 investors. So, how have you gone about approaching the brokers because brokers are not onboard earlier as well when you were trying to come out with a settlement formula which was being done behind when Jignesh Shah was in the executive capacity and now especially when heat is on them?

A: Somebody had to take the first step. Currently what we saw is there is too much of negativity going around. Everybody is fighting with each other, we decided somebody has to take a first step with resolution in mind. So, we have made that first step. In all earnest and the details of the proposal that I shared with you we went to the government and we have proposed the thing. We now believe the ball is in governments court. We are sure at some point of time government will consider this whether they consider exactly this, they have a modification to this we are not privy to that but government will get in touch with the brokers. As I said the principle context of this thinking or the thought process is all of us will have to bring on table a resolution mindset. If everybody brings a partial resolution and a partial conflict mindset I don't think this will flow through. Our approach is we are showing that first step from our side.

Shereen: If I can interrupt you and just to take Sajeet's point forward because as you mentioned that you envisaged this settlement, you have decided to take the first step. You would hope that the brokers will also participate and chip in with another Rs 500 crore but what has been the response from the brokers so far and what gives you the confidence that the government will entertain this settlement proposal in any fashion?

A: Yes, good question. Two things- have we approached the brokers, the answer to that is clear no. As I said, somebody had to take the first step, we would believe that FTIL is the first person that has now decided to take the first step. Will the government consider this, not up to me, it is up to the government and as I said, the principal construct of this that everybody will have to have a resolution mindset. It is not something that I can achieve all on my own so, that is my first point. 

Second point to answer Sajeet's question in terms of the genuineness of the trading clients etc, I am saying that is a exercise which NSEL is doing on its own, we do not want to interfere with that exercise. Our proposal has an underlying assumption. Our underlying assumption is that all 13,000 probably are genuine. If they are genuine they will get the claim, if they are not genuine they will not get the claim. The way we are also proposing this is in a very open transparent manner, there is a government of India that steps forward, Bombay High Court has already appointed a committee; let that committee also participate, let brokers also come in, let the real genuine trading clients who were supposed to receive these payouts, let them also join in. All I am saying is we want to bring a lot more positivity from a resolution mindset.

Shereen: But speaking of a resolution, the government seems to have made up its mind as far as FTIL is concerned and today the matter was taken up by the CLB. It has now been adjourned to April 14 th but the MCA petition is seeking the ouster of the FTIL board, the MCA petition alleges that the FTIL board is not fit and proper. It does not seem like the government is likely to buy a settlement proposal being put forward by FTIL on the face of it?

A: Efforts are in our hand, results are not. Somebody had to make the first move, we believe we have done so. We have tried to be as fair as we thought we could be in proposing. Now the ball clearly is in the government's courts and as I was explaining , we are not stopping the government from taking a path of conflict. They can go ahead; they can take a path of conflict. They have all the weaponry and arsenal in their capacity which they can use. As much as the weaponry and arsenal that they have to use against us, our view is we also have the court of law. We have the highest regard for India as a country, India as a democracy. We believe the institution of law in India are one of the most powerful all over the world and make no mistake, we will fight that battle as well in the court of law.

As regards your 396, 397 I am saying government has a point of view on 397, we have a point of view on 397. Through your media and through your channel let me just make a couple of perspectives which will give you some insight of what will probably pay out either in the court of law or company law board. The entire 12 member board that we have today, this board has only taken one decision thus far, just one decision and that decision has been to oppose the amalgamation of NSEL with FTIL and why is that decision being taken, in fiduciary capacity to protect the interest of my 63,000 plus shareholders. Question to you today as media, isn't board justified in taking that stance? By ousting the board what exactly do you think the government probably will do? They will instead of opposing the amalgamation, they will probably say, okay as a new board I will vote in favour of merger. So, these are some of the arguments that will play out in a court of law. 

Shereen: Not for us to make judgement calls on whether it is fair or not fair or what the government or what FTIL or NSEL or the CLB is likely to do on this matter but let me ask you whether in your capacity now that you have decided to take the first step and forward a proposal of some sort which we are given to understand brokers are not on board with at this point in time, you are saying that you have not reached out to the brokers to start with but do you have the capacity to better this proposal?

A: It is a very hypothetical question; to a hypothetical question what do I answer? The question is if everybody—I look at life very simply, I live my life very simply. It is very simple; if everybody has a resolution mindset I don't think this is that big a problem. If you look at US for example, this whole credit default swap that happened, they resolved a problem of that big magnitude. You mean to say the government of India, us, the trading clients who had to receive the money and the settlement payout and the brokers, all four of us together in this country at this stage of this country will not be able to resolve, answer to this?

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Taj Mansingh: NDMC to extend Tatas' lease till auction over

The home ministry, on the back of an opinion of the attorney general and solicitor general, has instructed the NMDC to carry out an open auction and not give the Tatas a right of first refusal.

The New Delhi Municipal Corporation will decide by how much time to extend the Tatas' lease. The home ministry, on the back of an opinion of the Attorney General and Solicitor General, has instructed the NMDC to carry out an open auction and not give the Tatas a right of first refusal in the auctioning of the iconic Taj Mansingh Hotel in Delhi. But as NDMC chairman Jajal Shrivastava told CNBC-TV18, the first step is to hire a transaction advisor as EY decided not to renew its contract.

Below is verbatim transcript of the interview:

Q: Has the Ministry of Home Affairs, the Solicitor General, the Attorney General given any opinion on whether the preference should be given to a domestic party, to a domestic hotel chain, that it should not just be money bags, it should bring certain amount of experience?

A: I am not party to the advice or the opinions tendered by the learned Attorney General and the learned Solicitor General so, I cannot really comment on that. As to the Union Home Ministry's directive to us, it does not give all these details and I do not know if it is fair about domestic or international and so on. An open auction would be an open auction.

Q: How long will it take for you to get a new transaction advisor on board?

A: At the very earliest one and a half to two months.

Q: At the very earliest one and half to two months and then they have to decide a new auction process, arrive at valuations. Will we see this open auction in 2015?

A: Once we have received a clear directive from the home ministry in January this year which had been pending for almost a year and a half and then at least we will have an idea of which direction to take. We have to plan the entire thing as a project. It is much simpler to give dates and schedules to a project if one knows how to proceed. So, that stage has come now. I think we should be able to finish this well within 2015.

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Looking to launch portal in H1CY16: Lifestyle International

Offline retailers such as Lifestyle International and Shoppers Stop are beefing up their e-commerce plans to take on stiff competition from online retailers.

Offline retailers such as Lifestyle International and Shoppers Stop are beefing up their e-commerce plans to take on stiff competition from online retailers.

While Shoppers Stop saw one of its lowest like-to-like sales growth last quarter, analysts believe entry into e-commerce will be crucial for others like Lifestyle to sustain its 30 percent CAGR growth.

Kabir Lumba, MD, Lifestyle International said the company is looking to launch the portal in the first half of next calendar year, 2016.

"We are working on our plans and so far we've stayed the course, we've seen some very strong sales growth for Lifestyle Home Centre and Max . We feel that offering a great product experience, retail experience is key and once you develop that you need to offer it across the brick and mortar as well as the digital space," he added.

Max India stock price

On March 19, 2015, at 09:23 hrs Max India was quoting at Rs 456.95, up Rs 2.15, or 0.47 percent. The 52-week high of the share was Rs 522.00 and the 52-week low was Rs 196.90.

The company's trailing 12-month (TTM) EPS was at Rs 15.29 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 29.89. The latest book value of the company is Rs 119.56 per share. At current value, the price-to-book value of the company is 3.82.

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Immigrants have made huge impact on US economy: Nasscom

H-1B workers replacing Americans have minimal skills and little or no business knowledge, whistleblower Jay B Palmer from Indian IT giant  Infosys said and asked lawmakers not to increase the number of much sought-after visas and plug in the loopholes in the immigration system. Reacting to the news, Shivendra Singh, VP - Global Trade Development, Nasscom said immigrants have made a huge impact on the US economy. 

According to him, US economy has become powerful by attracting foreign companies. Indian IT workers complement US workers and not replace them, he added.

He believes there is a shortage of IT talent in US.

Below is verbatim transcript of the interview:

Q: The arguments that have been presented to the US Senate committee by Jack Palmer, the whistle blower in the Infosys visa fraud case alleging that that H1-B visa route continues to be misused by Indian companies. How will Nasscom retaliate?

A: We do not respond to specific issues but company issues. On an overall basis the US economy has become powerful economy because it has attracted and welcomed skills and talents from across the world and the immigrants have made a huge contribution to the growth of the US economy and that is a proven fact.

Few pointers that he has raised does not hold any basis if you look at the high skilled workers, that is where we are talking about, it basically consists of the STEM workers, the science technology engineering and mathematics and they complement the US workers instead of replacing US workers.

If you look at some of the statistics which goes on to show that very strongly and various statistics that the vacancies, the demand is far higher than what the supply is for these workers.

It is kind of one is to five and the unemployment figures is also pretty low, it is about 2.7 percent compared to about 5.5 percent overall, the national employment. So, all these points surely go on to show that it is an issue of talent and there is a huge talent shortage which is there in the US and H1-B high skilled workers from STEM fulfill that.

Q: If can also read out to you what Jack Palmer has said specifically in response to Nasscom's statements. He says, "I've read statements from Nasscom stating that if the cap is not increased and with the current visa restrictions, the Indian economy will suffer let me ask the committee what about our economy? H1-B visa workers spend a minimal amount of money in the US and usually live 8 people to a room." So, do you fear now that the anti-outsourcing rhetoric is going to gain ground again?

A: Well, the question that you asked is two fold. One of them is the fact of the personal lifestyle and that is something which I would not like to comment on but in terms of the pure legal process, all our companies follow the legal process and they apply for H1-Bs or any other kind of visa based very much on the system or the US government laws.

Depending on that they are very much a part of the whole process so, hence in terms of whether it is going to create a furor or not, obviously this is not good news because it is not a case of impacting the Indian economy, it is a case of impacting the pre-movement of talented people globally and impacting the laws of demand and supply and all companies and country people are welcomed in India as you know there is no barrier.

Q: Is Nasscom going to respond in any form or fashion to the arguments made in front of the Senate committee?

A: Well, that is something which the people have been called to respond by the Senate committee for this argument so we have continued to evolve and we continue to respond on an overall basis whether it is totalisation treaty where our people have to pay taxes which are not called for because they do not claim benefit of the social security which is a big issue which now has been recognized that it is a concern from the US side as well so we will continue to raise it at all the various forums which is there and raise those issues.

Infosys stock price

On March 19, 2015, at 09:25 hrs Infosys was quoting at Rs 2229.35, down Rs 0.85, or 0.04 percent. The 52-week high of the share was Rs 2335.20 and the 52-week low was Rs 1447.00.

The company's trailing 12-month (TTM) EPS was at Rs 104.69 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 21.29. The latest book value of the company is Rs 366.51 per share. At current value, the price-to-book value of the company is 6.08.

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Air India Board reviews carrier's financial performance

The state-run carrier, which is to receive Rs 30,000 crore equity from the government for 10 years, starting April 2012, as a part of its Turnaround Plan (TAP)and Financial Restructuring Plan, has been allocated Rs 2,500 crore funds for the next fiscal. "Air India Board discussed the budget for the next fiscal.

Air India Board on Tuesday discussed the national carrier's Budget for the next fiscal, besides reviewing its current financial performance at a meeting here.

The state-run carrier, which is to receive Rs 30,000 crore equity from the government for 10 years, starting April 2012, as a part of its Turnaround Plan (TAP)and Financial Restructuring Plan, has been allocated Rs 2,500 crore funds for the next fiscal. "Air India Board discussed the budget for the next fiscal.

The airline's financial projections for FY 16 look quite promising," an official source said. The carrier has made substantial improvement in the financial projections for the current fiscal, the source said adding, "certain parameters envisaged in the Turnaround Plan and Financial Restructuring Plan could not be achieved due to the capacity constraints".

The sources, however, did not divulge any number from these projections. Airline's on-time performance, which has taken a severe beating in the recent past and which is being monitored by the government on a daily-basis was also reviewed at the meeting, the sources said.

Last month, the carrier has delivered around 75-80 per cent OTP both on the domestic and international routes, and it has seen told to improve it further, they said.

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Alibaba may not invest in Snapdeal

Last week, a person informed about the deal had told Media that Alibaba was in talks with Snapdeal over a potential cash investment in what could have been the Chinese e-commerce giant's first direct investment in India.

Alibaba Group Holdings Ltd may scrap plans to invest in online marketplace Snapdeal, technology website Recode reported, citing a person who was familiar with the matter.

Last week, a person informed about the deal had told Media that Alibaba was in talks with Snapdeal over a potential cash investment in what could have been the Chinese e-commerce giant's first direct investment in India.

Alibaba has held discussions with Snapdeal about a possible investment, but the Chinese company is leaning away from investing in Snapdeal right now, Recode said.

Snapdeal competes in India with bigger rivals Flipkart.com and Amazon.com, and media reports had said it was seeking USD 1 billion in its latest funding round to fuel growth.

Alibaba and Snapdeal's talks, however, did not involve a deal close to the USD 1 billion number reported, Recode cited the source as saying.

Representatives for Alibaba and Snapdeal could not be reached for a comment.

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Scholz acquisition to boost margins, EPS: Amtek India

Scholz is a leading high quality hot die forgings manufacturer for the auto and non-auto component industries

Speaking about the recent German acquisition, Gautam Malhotra, MD,  Amtek India in an interview to CNBC-TV18 said the new company will improve margins and would add to the company's EPS from first year itself.

Amtek Auto has acquired German based Scholz Edelstahl GmbH through its 100% Singapore based subsidiary Amtek Precision Engineering PTE Limited.

Scholz is a leading high quality hot die forgings manufacturer for the auto and non-auto component industries. It is also engaged in the special steel trading business which will enable backward integration with all of Amtek Group's international business

The acquisition would help the company by adding news clients, give forward and backward integration and also give trading advantages, said Malhotra.

The company has paid less that four times EV to EBITDA for the acquisition through a mixture of debt and equity, said Malhotra. The debt post the acquisition would to to 4.5-4.6 times net debt to EBITDA. The EBITDA of the new company is around 14-15 million euros, he added.

According to him there would not be real increase in the debt, only a small amount of Rs 200-300 crore would come in through this acquisition. The debt on the balance sheet for the company is about Rs 15,500 crore.

transcript to follow

Amtek India stock price

On March 17, 2015, at 09:23 hrs Amtek India was quoting at Rs 55.65, up Rs 1.30, or 2.39 percent. The 52-week high of the share was Rs 137.85 and the 52-week low was Rs 53.65.

The company's trailing 12-month (TTM) EPS was at Rs 8.74 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 6.37. The latest book value of the company is Rs 89.24 per share. At current value, the price-to-book value of the company is 0.62.

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SBI sells only 130 properties in e-auction of 300 assets

SBI had put on block around 300 properties worth Rs 1,200 crore, including offices, shops, factory buildings and residential apartments spread across 25 cities including four major metros through an e-auction last Saturday, after it had put out a public notice on Thursday.

Country's largest bank SBI  could sell about 130 properties only through its much publicised e-auction of 300 assets, realising just about Rs 100 crore.

"We sold around 130 properties, largely residential through the e-auction process, realising about Rs 100 crore," a senior SBI official told Media late this evening. He said SBI could sell all of the 100 residential properties it had put on the block.

This was the maiden attempt by the lender, which has been fighting a long battle to contain bad loans, to dispose of distressed properties through an e-auction.

SBI had put on block around 300 properties worth Rs 1,200 crore, including offices, shops, factory buildings and residential apartments spread across 25 cities including four major metros through an e-auction last Saturday, after it had put out a public notice on Thursday.

Considering heavy traffic on magicbricks.com, the property site that was assigned to carry out the auction, SBI had extended the time for auctions by an hour.

"Due to heavy traffic, the site has become slow and we don't want anyone to miss the chance. Earlier, the bidding time was till 5 pm and we are now going to extend it by an hour," SBI Deputy Managing Director, stressed assets group, PK Malhotra had said last Saturday. The process was conducted by e-procurement solutions providers C1 India and Auction Tiger. 

SBI stock price

On March 17, 2015, at 09:20 hrs State Bank of India was quoting at Rs 282.00, up Rs 0.35, or 0.12 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 165.22.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.98. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.78.

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Sebi asks listed cos to appoint lady directors by month-end

Stepping up its pressure, regulator Sebi has asked all listed companies to mandatorily appoint at least one woman director on their boards by the end of this month, failing which they would face regulatory action. The regulator, which has found that nearly one-third of the top-500 listed companies do not have any woman member on their respective boards, has also asked the stock exchanges to ensure strict adherence to the timeline. With just a fortnight left to meet the deadline, Sebi has also proactively written to more than 160 such companies to ensure compliance.

Sources said that some of the companies have already replied to Sebi, stating that they were taking necessary steps to meet the timeline. Besides, Sebi has also written to the Corporate Affairs Ministry, requesting it to inform the registered companies of ensuring compliance to the requirement for all listed companies to have at least one woman director before April 1. The Institute of Company Secretaries of India (ICSI) has also been asked to tell its members to ensure compliance, as the company secretaries generally serve as 'compliance officers' in the companies for adhering to listing norms.

Under new corporate governance norms, announced early last year, Sebi had initially asked all listed companies to have at least one woman director on their boards by October 1, 2014. However, the deadline was later extended to April 1, 2015. Having already given a six-month extension from the earlier deadline, Sebi is very serious on the compliance to these norms and the companies would have to face the music by the stock exchanges and the regulator if they fail to meet the deadline, sources said.

Sebi had adopted a similar multi-pronged approach, including the direct engagement with the non-compliant companies, when it had put in place the new minimum public shareholding norms for the listed firms. In the woman director matter, Sebi earlier this year had sought details from the stock exchanges about the compliance in the top-500 companies. After it found that over 160 of those did not have any woman director, the regulator initiated a detailed framework to ensure compliance within the given timeline.

The exchanges have been now asked to ensure adherence to the timeline by all listed companies and to initiate action against those failing to appoint at least one woman on their respective boards by the end of this month. After Sebi's direction in February last year, many companies had stepped up their efforts to have women directors on their boards and nearly 500 female members were nominated to the boards till December 2014, although many of them happen to be family members of the promoters. Still, a large number of companies are yet to comply.

Sebi have the extension last year to align its corporate government norms with the related Companies Act provisions. The norms were finalised after detailed discussions between Sebi and concerned stakeholders for over a year and involve stronger regulations for listed companies than those prescribed under the Companies Act for non-listed entities. These include clarification on rules relating to appointment and qualification of directors and independent directors, matters relating to related party transactions, and the rules governing meetings of board and its powers. 

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Hyundai gears up for full play in SUV segment in India

The company, which will launch the latest model i20 Active - a sports-styled version of its premium hatchback i20 - next week, will introduce iX25 SUV in India ahead of the festive season.

Eyeing a sales milestone of 5 lakh units in the domestic market, Hyundai Motor India is gearing up for a full play in the fast emerging sports utility vehicle segment to add volumes.

The company, which will launch the latest model i20 Active - a sports-styled version of its premium hatchback i20 - next week, will introduce iX25 SUV in India ahead of the festive season.

"In the sedans, we have the full range from Eon to Elantra. However, we have only the Santa Fe in the premium SUV segment, which is one of the fastest growing segments in India. It's our endeavour to complete the range," Hyundai Motor India Ltd (HMIL) Senior Vice-President (Sales and Marketing) Rakesh Srivastava told Media.

Elaborating the company's strategy, he said the i20 Active will address the section at the lower end of customers, who are looking for a sporty and stylish vehicle. "The i20 Active will be our 9th model in India and we are confident of getting a good response from the market," he said.

The i20 Active will compete with the likes of Toyota Etios Cross, Volkswagen Cross Polo and Fiat Avventura which are priced in the range of Rs 6.23 lakh to Rs 8.5 lakh (ex-showroom Delhi).

When asked about a model to fill the gap between its premium SUV Santa Fe and i20 Active, Srivastava declined to share details but said the company would plug that gap too.

Sources, however, said the company is set to introduce the ix25 SUV in India around August-September ahead of the festive season this year. This would then complete HMIL's range of SUVs in India.

Last month, the company had launched the new updated version of its mid-sized sedan Verna as part of plans to cross the 5 lakh sales milestone in India. HMIL had sold sold 4.11 lakh units last year.

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Mobile World Congress showcases latest from tech world

Mobile World Congress showcases the best and latest from the world of technology and this year CNBC-TV18's Megha Vishwanath was there in Barcelona to bring all the highlights!

Mobile World Congress showcases the best and latest from the world of technology and this year CNBC-TV18's Megha Vishwanath was there in Barcelona to bring all the highlights!

Watch video for more..

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Here's how Reliance's GenNext is nurturing start-ups

The first batch of 11 startups is all set to graduate from the GenNenxt innovation hub after four months of rigorous training.

Start-ups are the flavour of the season. Both the Modi government and corporate India are putting their time and money behind nurturing innovative entrepreneurial ventures.
To encourage disruptive tech startups,  Reliance Industries in partnership with Microsoft Ventures has set up the GenNext innovation hub start up accelerator.

The first batch of 11 startups is all set to graduate from the GenNenxt innovation hub after four months of rigorous training, reports CNBC-TV18's Shruti Mishra.

RA Mashelkar, Chairman, GenNext Ventures and board member, RIL said: "We are not just looking at Reliance we want to have 100 start-ups come in and we want to create 1000 job providers not job seekers. That's the ambition."
 
Bhaskar Pramanik, Chairman, Microsoft India said, when the company first came it wasn't that crystal clear and precise as to what it was trying to achieve and by going through this mentorship program it has achieved that.

It has been able to focus, able to make its value proposition much clearer. It has been able to scope what the opportunity is and more important it has been able to establish the network which we believe will help them to go to the next stage.

The four-month long incubation programme helped the 11 fine tune their business models with the help of industry leaders who played mentors.

"The first thing we provided was mentorship, the reason is most of the problems we see among start-up community in India is that they don't have a face to talk to. Because one you are talking to an industry expert or a tech expert, a lot of problems can be resolved.

Second is the connects that we have with industry leaders so that's where the day to day problems are kind of relayed down to start-ups. So they don't do the same mistakes again and again. Third is the customer connects, because end of the day everyone needs customer," said Rajinish Menon, director, Microsoft Ventures.

For the graduating class the entrepreneurial journey has just begun. The GenNext innovation hub has also opened applications for its second batch that will start in June this year. So if you are a startup looking for some mentoring, sign up now.

Reliance stock price

On March 13, 2015, Reliance Industries closed at Rs 850.15, down Rs 13.6, or 1.57 percent. The 52-week high of the share was Rs 1142.50 and the 52-week low was Rs 831.10.

The company's trailing 12-month (TTM) EPS was at Rs 68.32 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 12.44. The latest book value of the company is Rs 609.07 per share. At current value, the price-to-book value of the company is 1.40.

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SBI rejects report of scrapping $1 bn loan pact with Adani

Earlier in the day, news reports from Singapore citing sources said that SBI was preparing to scrap the loan agreement it had signed with the Adani group in last November. When contacted SBI Chairperson Arundhati Bhattacharya told Media: "Its all gossip.

Speculation is rife that SBI  is set to reject Adani Group's USD 1 billion loan application for its Australian coal project, but the bank chairperson scotched the same saying "it's all gossip".

Earlier in the day, news reports from Singapore citing sources said that SBI was preparing to scrap the loan agreement it had signed with the Adani group in last November. When contacted SBI Chairperson Arundhati Bhattacharya told Media: "Its all gossip.

There is no fact (in news reports)." A senior bank official, however, said that the loan proposal has not progressed from both ends as "neither the company has come back to the bank nor the proposal has reached the credit committee of the bank so far".

The Adani spokesperson did not respond to repeated calls. The much-touted agreement, inked during Prime Minister Narendra Modi's visit to Australia last November, had created a ruckus in Parliament.

Opposition had questioned "the propriety of SBI giving the loan to Adani ...at a time when some five foreign banks have denied credit to the group for the project".

If extended this would be the largest loan by a state-run bank to a domestic company for an overseas project. Last December, Bhattacharya had said that the proposal would go through due deliberations by by the bank's executive committee.

At SBI, loans over Rs 400 crore are generally cleared by the executive committee headed by the chairperson. The other members of the executive committee include two managing directors and non-executive directors. That apart, a Reserve Bank nominee director (at present deputy governor Urjit R Patel) is also in the committee.

Adani Mining is building a 300-km rail line for its mega USD 16-billion Carmichael coal mine project in Australia's Queensland state. The project requires a railhead and a coal terminal at Abbot Point.

The Queensland state's Coordinator General had already approved the USD 2-billion rail link called the North Galilee Basin Rail that would link Adani's coal mine with Abbot Point coal terminal. 

SBI stock price

On March 13, 2015, State Bank of India closed at Rs 280.85, down Rs 6.35, or 2.21 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 163.01.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 16.91. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.77.

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Life insurance may be theme of the year: Societe Generale

With the Rajya Sabha clearing the Insurance Amendment Bill, several foreign investors waiting in the wings are finally ready to take the plunge. Max group is in talks with multiple partners for its life insurance business, while Axa has committed to hiking its stake to 49 percent in its joint ventures with Bharti.

With the Rajya Sabha clearing the Insurance Amendment Bill, several foreign investors waiting in the wings are finally ready to take the plunge. Max group is in talks with multiple partners for its life insurance business, while Axa has committed to hiking its stake to 49 percent in its joint ventures with Bharti. Brokerages have given the listed entities in this space a thumbs up but it will be a while before this sector gets back on its feet, reports CNBC-TV18's Ekta Batra.

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Insurers eye billions of dollars as Parl clears Bill

Within minutes of Parliament approving higher foreign investment in insurance sector, a number of insurers including from Bharti, Reliance, Max and SBI groups said their overseas partners will raise their stakes in respective JVs to 49 percent.

Within minutes of Parliament approving higher foreign investment in insurance sector, a number of insurers including from Bharti, Reliance, Max and  SBI groups said their overseas partners will raise their stakes in respective JVs to 49 percent.

Welcoming the hike from 26 percent to 49 percent, the companies said their foreign partners were keen on a larger equity participation and the move would help attract USD 8-10 billion capital into the industry.

Bharti Group Chairman Sunil Bharti Mittal said "this is a positive development which will bring the much-needed investments for the growth of the insurance industry." Mittal said France's Axa will "step up their equity investment to 49 percent.

Bharti will soon move the application to FIPB as per the new FDI guideline". "This is a huge positive and is expected to bring in USD 8-10 billion capital in the industry which will in turn help the industry to significantly improve insurance penetration in the country.

"We will be initiating dialogue with our partners in life insurance for increasing their stake and also hope to close the partners for our General insurance and health insurance businesses soon,"  Reliance Capital CEO Sam Ghosh told PTI.

SBI Life MD and CEO Arijit Basu said "there is clarity and uncertainty is over... We are happy about it". SBI Life, which is a 74:26 joint venture of State Bank of India and BNP Paribas Cardiff, is in talks with the foreign partner for raising the stake.

"They are interested in hiking the stake.. How much and when it happens will depend on discussions," he said.  Max India Chairman Analjit Singh and  HDFC Life MD and CEO Amitabh Chaudhry also said the move will bring in more foreign capital in the near future.

Singh said its JV partner in health insurance venture UK- based Bupa is willing to hike stake in the company and a proposal in this regard is pending with the FIPB. As regards Max Life Insurance, Singh said, "Lots of conversation is going on with multiple partners. If Mitsui wants to raise stake, that Mitsui's call".

Parliament tonight approved the long-pending Insurance Bill that provides for raising foreign investment cap to 49 percent in the sector. The controversial Insurance Laws (Amendment) Bill, 2015, which replaced an ordinance promulgated in December last, was passed by voice vote.

Financial Services Secretary Hasmukh Adhia said: "The insurance sector in India will get a big boost because of passing of the insurance legislation in the Parliament on Thursday".

SBI stock price

On March 13, 2015, at 09:26 hrs State Bank of India was quoting at Rs 289.75, up Rs 2.55, or 0.89 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 163.01.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 17.44. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.83.

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