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AItoraisebondamountfornewpilots
Air India is in the process of raising bond
amount for new pilots, to stem their migration
to rivals after acquiring high-cost training.
The airline currently spends ~25-60 lakh
on training of a new entrant to fly a
particular type of aircraft after his or her
induction, which needs to be recovered if the
pilot leaves before the mutually agreed time,
sources said. PTI<
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Foxconn unit invests in MoMagic
FIH,aunitofTaiwanesetechnologyfirm
Foxconn,haspicked10percentinMoMagic,
amobileinternetfirminDelhi,foran
undisclosedsum.Theinvestmentistofurther
strengthenFIHsbusinesspresenceinIndia,
andaspartofthetwocompanies'sharedgoal
oftappingsignificantbusinessopportunities
intotheworld'sfastest-growingmobile
internetandsmartphonemarket. BS REPORTER<
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Telecom sector to see rising debt
Withincreaseofcostofspectrumacquisition
andheavycashneedforsettingupof
infrastructureformobileinternetamidlower
profitability,Indiantelecomsectorisexpected
towitnessconsolidationandrisingdebt,said
IndiaRatingsandResearch. BS REPORTER<
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Aircel launches cheap 2G data packs
AircelonMondaylaunchedmobiledatapacks,
startingfrom~9,toofferunlimitedsecond-
generation(2G)internetfordifferentvalidity
periods.Witharechargeof~9perday,its
subscriberscanuse100megabytesofdatafor
thepurposeofbasicinternet. BSREPORTER<
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Porter to raise funds
Porter,aMumbai-basedonlinelogistics
marketplace,islookingatraisingaSeries-B
fundingtowardsthemiddleof2016,according
toitsco-founderandchiefexecutiveofficer
PranavGoel.Porterraised~35croreinaSeries-A
fundingfromSequoiaCapital,KaeCapitaland
otherinvestorsinJune2015. BS REPORTER<
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Hyundai to educate kids on traffic
Thecountryssecondlargestcarmaker,
Hyundai,haslaunchedaninitiativeto
educateschoolchildrenonsafetraffichabits,
inassociationwiththeministryofroad
transportandhighways.Thetrafficsafety
campaignwillinitiallybelaunchedinfivecities
-Delhi,Mumbai,Chennai,Kolkataand
Ahmedabad. BS REPORTER<
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FlyDubai eyes pact with SpiceJet
SpiceJet,whichisfirmingupambitiousfleet
expansionplans,isevaluatingpossible
partnershipwiththeGulf'slow-costairline,
FlyDubai.It hasreceivedinterestfromotherGulf
airlinesforcollaboration,includingstrategic
investment,sourcessaid. PTI<
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Tata Motors to launch hatchback Zica
TataMotorswilllaunchitsnewcompactcar,Zica,
earlynextyear,aspartofadrivetoenhance
positioninthepassengervehiclessegment.While
thecompanydidnotcommentonthedateof
launchofZica,sourcessaiditisexpectedtohitthe
marketintheearlypartof2016. PTI<
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EricssoneyesDigitalIndia,smartcities
TelecomgearmakerEricssononMonday
announcedsettingupofanewunitIndustry
andSocietywhichwillfocusonsmartcities,the
DigitalIndiacampaignandothertechnology
projectsfromthegovernment.It'sexpectedto
accountfor20percentofthegroup'soverall
businessfromIndia. PTI<
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Microsoft launches new Lumia
Informational technology giant Microsoft,
which has acquired Nokias mobile unit, on
Monday launched high-end Lumia phones in
Mumbai for corporate clients who could use it
as a PC and said more such devices with a
different price range would hit Indian
markets soon. BS REPORTER<
Luxury cars get cheaper as manufacturers increase localisation
SWARAJ BAGGONKAR
Mumbai, 30 November
India has become a top-rated
destination for luxury car pro-
duction, as it plays host to
Jaguar Land Rover, Mercedes-
Benz, BMW and Audi. All of
these added a string of models
to their production lines.
About two dozen luxury
car lines get assembled in
India of the marquee
German and British brands,
some of which are not pro-
duced anywhere else but in
their home country.
The increased localisation
has led to a reduction of
~2 lakh to ~90 lakh in their stick-
er price, due to lower taxes.
Most of these products were
brought to India as a complete-
ly built unit (CBU) from their
home country, Germany or the
175 Topgaineramong
> Rajesh Exports
715
165.90
160 theAgroupstocks
708.05
700
682.35
144.25
145 685
137.90 ~144.25 PREVIOUS CLOSE
~165.90 CLOSE 679.30
130 670
Nov 2015 Nov Nov Nov 2015 Nov Nov
19 27 30 15.01% UP* 19 27 30
Indian firms line up for
Welspuns green projects
Hero Future Energies, ReNew Power and Reliance Cleangen reportedly
considering this portfolio
SHREYA JAI
New Delhi, 30 November
H
ero Future Energies, ReNew
Power and Reliance Cleangen are
evaluating the renewable energy
portfolio of Welspun Enterprises. Welspun
Renewables, wholly-owned green energy
arm of Welspun Enterprises, is selling
equity stakes in its solar and wind power
projects.
SoftBank, earlier keen to pick up
stakes in the projects, has dropped out.
Welspun Renewables was raising
capital through equity sales, said a per-
son close to development. Persons in
the know said domestic and foreign
companies were in the fray to invest in
Welspun Renewables projects totalling
400 Mw.
Vineet Mittal, vice-chairman, Welspun
Renewables, did not respond to phone
calls and text messages. The company's
spokesperson also did not respond.
Promoted by B D Goenka, the
Welspun Group has interests in textiles,
polychemicals, steel, cement and renew-
able energy.
Hero Future Energies, a comparative-
ly new entrant with 250 Mw capacity, is
keen to buy Welspuns projects but chief
executive Sunil Jain declined to comment.
Hero has a pipeline of around 1,000 Mw of
wind power projects, in seven states.
Reliance Cleangen, renewable energy
arm of the Anil Ambani-promoted
Reliance Power, said it had no such plans.
Sumant Sinha, chief executive, ReNew
Quikr acquires Commonfloor Myntra decides
for $200 million to return to web
Deal to be announced presence
next week, according
to people close to
the development
BS REPORTER
Bengaluru, 30 November
Tiger Global-funded online classifieds
platform Quikr has finalised a stock-
cum-cash deal to acquire real estate
portal CommonFloor.com for
$200 million (~1,300 crore).
The deal will be announced next
week, two people familiar with the
development said.
A Quikr spokesperson, terming it
market speculation, said: We are
always looking at strengthening our
verticalisation strategy.
CommonFloor, which counts
investors such as Accel, Google Capital
and Tiger Global, was in talks to merge
with Quikr, after it failed to raise addi-
tional capital to fund its business. So
far, the firm has raised $60 million.
Pranay Chulet-founded Quikr, with
a valuation of around $1.5 billion has
been looking for acquisitions to
strengthen its verticalisation strategy.
Quikr has raised $346 million in
six rounds from investors such as
Tiger Global, Warburg Pincus, and
Norwest Venture Partners.
A few weeks ago, it acquired India
Realty Exchange (IRX), a mobile-first
aggregator of real estate agents found-
UK, which led to doubling of
their rates.
Tata Motors-owned Jaguar
Land Rover (JLR) shaved near-
ly ~8 lakh on its global best-
seller Range Rover Evoque
when it announced the latest
prices of the SUV, which now
starts at ~47.1 lakh after local
assembling.
Mercedes-Benz, first in this
country's luxury car market,
has started local assembly of
the Maybach S500, leading to a Jaguar Land Rover shaved nearly ~8 lakh on its global
reduction of ~93 lakh to best-seller Range Rover Evoque
~1.67 crore.
Outside Germany, this is the Indian customers, with signifi-
only country to produce the cant local value addition, in the
Maybach. Both Mercedes-Benz shortest possible time. Our
and JLR have factories at localisation level of up to 60 per
Chakan, near Pune. cent is the highest in the luxu-
Roland Folger, managing ry car industry and we contin-
director, Mercedes-Benz India, uously pass on the benefits to
said: We are glad to offer our customers...result of our
world-class products to our long-term vision (to) create a
Securesexportorders
> BF Utilities
worth~1,122crore 602.10
580.45
574.50
~679.30 PREVIOUS CLOSE
~708.05 CLOSE
Nov 2015
4.23% UP* 19
Power Ventures, said he would refrain
from commenting.
ReNew Power is backed by Goldman
Sachs with an equity investment of close
to $350 million and its current total equi-
ty is $655 million. The company has
1,600 Mw of clean energy assets across
the country, out of which 1,000 Mw are
wind energy projects.
Welspun has in the past received insti-
tutional funding from across the globe for
its projects. General Electric made its first
Indian solar investment in the company
by pumping in $24 million into Welspuns
151 Mw solar project in Neemuch, Madhya
Pradesh. Asian Development Bank also
Quikr, founded by Pranay Chulet
(pictured), has been looking for
acquisitions to strengthen its
verticalisation strategy
ed by Vikram Dhawan and Karan
Jindal for an undisclosed sum.
IRX tags agents and brokers with
real-time projects and locations, and
also helps users connect with them to
buy and sell property.
The investment towards this latest
acquisition is a strategic move that
enables Quikr to strengthen its newly
launched vertical, QuikrHomes.
PHOTO: REUTERS
strong foundation for our busi-
ness in India. Mercedes-Benz
presently makes eight products
out of Chakan.
These being the CLA, C-
Class, E-Class, S-Class,
Maybach S500, GLA, GLE and
GL-Class sport utility vehicle.
It imports more than the same
MUMBAI | TUESDAY, 1 DECEMBER 2015
610 FY15 consolidated net
> IDBI Bank
95 Top gainers among
> Amtek Auto
46 Septemberquarternet
595 profit at ~61 crore
93.45
90 S&P BSE Midcap stocks 44.75
44 lossat~159crore
42.70
86.40
580 85 42
~574.50 PREVIOUS CLOSE ~86.40 PREVIOUS CLOSE ~42.70 PREVIOUS CLOSE
~602.10 CLOSE 84.35 ~93.45 CLOSE 40.90 ~40.90 CLOSE
565 80 40
Nov Nov Nov 2015 Nov Nov Nov 2015 Nov Nov
27 30 4.80% UP* 19 27 30 8.16% UP* 19 27 30 4.22% DOWN*
Countrys oldest path
lab chain to go public
with ~638-cr IPO
ANEESH PHADNIS ence lab in Delhi and 171 satellite labs
Mumbai, 30 November across the country. Besides, over
1,500 service centres and 7,000 pick-
It has the size and scale and sound up points for collection of samples.
financial record, with zero debt and Last year, we collected nearly 22 mil-
a 14 per cent net profit margin. But, lion samples from about 10 million
ABOUT WELSPUN Dr Lal PathLabs has also another
facet history.
patients, he added. Lal is a recipient
of the Padma Shri and was appoint-
| Welspun Renewables has Offering 11.6 million shares in an ed honorary physician to the
308 Mw of solar power initial public offer, it is not only among President in 2001.
capacity the top pathology lab chains in the Arvind Lal took charge of the lab-
country but it is also the oldest pri- oratoryin1977,leaving hisjobasanlec-
| Has 440 Mw of solar power vate lab chain with its origins dating turer in Armed Forces Medical College
projects in the pipeline back to 1949. after his fathers death that year.
S K Lal laid the foundations of the Expansion began in 1982, with
| It is building one of the
chain with the setting up of Central Dr Lal PathLabs appointing fran-
largest solar power projects Clinical Laboratory in Delhi, four years chisees for collection of samples.
in Madhya Pradesh, with after partition. Around the same time, the laboratory
capacity of Rawalpindi-born and Lahore- brought an auto analyser for testing
750 Mw trained S K Lal was forced to move to samples and computerised lab opera-
| Had committed to add Delhi along with other members of his tions in 1986. The company took its
family during partition. A doctor by present name in 1995. Further expan-
11,001 Mw of renewable
training, he previously served in the sion and modernisation took place
energy capacity by 2022 in
British Indian Armys medical corps with the appointment of professional
RE-Invest 2014 during the second world war. He took managers, accreditation from nation-
early lessons in pathology in the al and international bodies and pri-
Armed Forces Medical College before vate equity investment.
made its first equity infusion ever in India settingupthelabinDelhi.During1953- Along with Lal, wife Vandana is a
as part of a $50 million commitment into 56 he studied and worked at North director in the firm. The couple along
the company. Western University and Cook County with their children own around
While debt financing is comparative- HospitalinChicago,developingexpert- 63.7 per cent. Private equity firms
ly easier now, renewables companies are ise in the subject. WestBridge Crossover Fund and
finding it difficult to raise equity. This This was a period when private Wagner own about 30 per cent.
(Welspun) also seems like one such effort pathology clinics were rare in the We will expand in our core areas
to tighten the fiscal condition of the com- country and most people visited gov- which are north, east and central
pany through equity sale, said a Delhi- ernment hospitals for tests. In the India. We also plan to set up another
based renewable energy expert. 1950s when my father managed our central reference lab in Lucknow and
Welspun has 308 Mw of solar power laboratory, it used to get four-five increase the number of hospital labs
capacity and is building its wind energy patients a day and by the 1970s, the under our management, said Om
portfolio. It has committed to adding number increased to 30. Today, we get Prakash Manchanda, the chains
11,000 Mw of renewable energy capacity 40,000 patients a day, said Arvind Lal, chief executive.
by 2022. The company has 440 Mw of chairman and managing director.
solar power projects in the pipeline. We now have one central refer- For more, visit business-standard.com
BS REPORTER
Bengaluru, 30 November
Online fashion retailer Myntra is shedding its Arvind Lal (left), CMD of Dr Lal PathLabs, and Om Manchanda, chief executive,
app-only presence and plans to revive its during a conference in Mumbai on Monday PHOTO: SURYAKANT NIWATE
website for shoppers by January, to tap more
users. Myntra had taken a lead in going app-
Tatas make a foray into
only earlier this year, following which many
others were shifting their focus as well.
This decision of Myntra to return to the
website format, while continuing with the
app offering, is along the lines of its parent,
Flipkart, which chose not to lose the growing
branded instant coffee
number of users who search online for deals. BS REPORTER
LocalOye is another company abandon- Mumbai, 30 November MORE COMPETITION
ing the app-only strategy of selling goods
| Indian market for Instant
and services within their walled gardens. The beverage arm of the $110-billion
coffee is ~1,300 crore
We are growing strong on the app front. (~7 lakh crore) Tata Group on Monday
However, all efforts will be pointing towards announced foray into the ~1,300-crore | Key players are Bru & Nescafe
making the user download the app, said a instant coffee market, with a new brand,
| The two frequently trade
Myntra official, who declined to be named. Tata Coffee Grand.
We want to keep it contained for our users. The move comes as the ~7,833-crore
positions, with share almost
neck and neck, according to
There is a New Year sale happening and we Tata Global Beverages (TGB) looks to
industry sources
will keep evolving. Things will become increase revenues from the coffee divi-
more mature. sion, one of two areas the company has | Tatas' entry will bring a third
A Myntra spokesperson declined com- identified as future growth drivers. TGB player into this market
ment on the development. Currently, their gets 75 per cent of its revenue from tea.
website redirects users to download its app Coffee and water contribute around 18
from the respective app stores of Google, per cent and two per cent, respectively. Globally, TGB has brands such as
Apple and Microsoft. Flipkart worked along- The plan is to take coffee and water rev- Eight O' Clock Coffee and Grand in its
side the Chrome team at Google to develop its enues to 35 per cent and seven per cent, portfolio. The initial plan was to extend
mobile website, the idea for which was floated respectively, in the next few years, as subsidiaryTataCoffee's packagedcoffee
by technology head Peeyush Ranjan, a for- the company wishes to reduce its bean brand (Mr Bean) into the instant
mer Googler himself. dependence on tea. coffee space in India. However, this was
The company opted for deeper integration TGB had set the process in motion a shelved for a new product altogether.
with Chrome, giving it the ability to push noti- few years earlier with a tie-up with glob- Sushant Dash, regional president for
fications on a users smartphone one of the al coffee house major Starbucks. At the TGB, said Tata Coffee Grand was devel-
key reasons developers choose to build native time, there was big gap in the packaged oped in-house, after months of research
apps in the first place. coffee space in India. and consumer studies.
BIG BOYS ON THE ROAD ing modules and seats are pro-
cured by BMW locally.
30,000 luxury cars were sold
last year between the four
Model Price before Price now Difference Philipp von Sahr, president, manufacturers; Mercedes and
BMW Group India, said: The Audi each had more than
Range Rover Evoque 54.93 lakh 47.1 lakh 7.83 lakh
future belongs to India. If you 10,000 unit sales.
Jaguar XJ 1.26 crore 96.05 lakh 29.95 lakh want to benefit from the Demand for the Mercedes-
BMW X5 74.5 lakh 69.9 lakh 4.6 lakh dynamics of the Indian mar- Benz CLA, which began with
ket, you need to act today. local assembly in September,
BMW 5 Series 46.9 lakh 44.9 lakh 2 lakh Following our approach that has seen a substantial spike in
Mercedes-Benz CLA 35 lakh 32.9 lakh 2.1 lakh Production follows the mar- volumes, say officials.
Mercedes-Benz S500 1.57 crore 1.36 crore 21 lakh ket, we have accelerated our India is the only market
localisation programme." outside Europe to produce it.
Mercedes-Benz Maybach 2.6 crore 1.67 crore 93 lakh Audi, another German In addition, the GLE became
(In ~) Source: Companies leader, makes its cars and SUVs the first model for Mercedes
from Aurangabad in to be locally assembled from
Maharashtra, a facility there its debut.
number from Germany, includ- BMW, which set up a plant which it shares with sister With the localisation, we
ing the compact A-Class and at Chennai, produces eight brand SkodaAuto. have passed on the tax benefits
B-Class cars. models from there, from Audi makes its A3, A4, A6, to the customers and have
Former luxury car market ~29.5 lakh to ~1.25 crore. Q3, Q5 and Q7 models from the added a value proposition to
leader BMW is not far behind. Components such as engine India plant; it imports seven their purchase. Localisation has
The German heavyweight and transmission, axles, door other models. buoyed the demand and help
has increased its localisation panels and wiring harness, The driving down of costs reduce the waiting list of many
content in its cars to up to exhaust systems, heating, ven- has helped boost volumes, say of the models with higher avail-
50 per cent. tilating, air-conditioning, cool- car makers. A little more than ability, added Folger.