India's industrial production down

The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of October 2011 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation. 

The General Index for the month of October 2011 stands at 158.1, which is (-) 5.1% as compared to the level in the month of October 2010. The cumulative growth for the period April-October 2011-12 stands at 3.5% over the corresponding period of the previous year.

2.    The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of October 2011 stand at 120.9, 165.9 and 152.1 respectively, with the corresponding growth rates of (-) 7.2%,    (-)6.0% and 5.6% as compared to October 2010 (Statement I). The cumulative growth in the three sectors during April-October, 2011-12 over the corresponding period of 2010-11 has been (-)2.2%, 3.7% and 8.9% respectively, which moved the overall growth in the General Index to 3.5%.

3.   In terms of industries, thirteen (13) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown positive growth during the month of October 2011 as compared to the corresponding month of the previous year (Statement II). The industry group ‘Medical, precision & optical instruments, watches and clocks’ has shown the highest growth of 30.8%, followed by 18.4% in ‘Office, accounting & computing machinery’ and 15.3% in ‘Radio, TV and communication equipment & apparatus’. On the other hand, the industry group ‘Electrical machinery & apparatus n.e.c.’ has shown a negative growth of 58.8% followed by 12.1% in ‘Machinery and equipment n.e.c.’ and 11.4% in ‘Rubber and plastics products’.

4.    As per Use-based classification, the growth rates in October 2011 over October 2010 are (-) 0.1% in Basic goods, (-) 25.5% in Capital goods and (-) 4.7% in Intermediate goods (Statement III).  The Consumer durables and Consumer non-durables have recorded growth of (-) 0.3% and        (-) 1.3% respectively, with the overall growth in Consumer goods being  (-) 0.8%.

5.    Some of the important items of capital goods showing high negative growth during the current month and thus contributing to the low growth of the overall index for the month include ‘Cable, Rubber Insulated’ [(-) 82.9%], ‘Cement Machinery’ [(-) 74.6%], ‘Insulated Cables/Wires all kind’ [(-) 38.2%], ‘X-ray equipment’ [(-) 35.8%] and ‘Plastic Machinery including Moulding Machinery’ [(-) 32.3%]. However, some important items of the capital goods are also showing significant growth. These are:  ‘Conductor, Aluminium’ (46.6%), ‘Boilers’ (45.8%), ‘Heat Exchangers’ (35.5%) and ‘Machine Tools’ (31.4%).

6.    The other important items showing growth during the month are: ‘Fruit Pulp’ (254.2%), ‘Cashew Kernels’ (91.9%), ‘Petroleum Coke’ (69.7%), ‘Rice’  (54.4%), ‘Marble Tiles/Slabs’ (47.2%), ‘Steel Castings’ (41.7%), ‘Leather Garments’ (33.6%), ‘Aluminium Tubes/Pipes’ (30.8%) and ‘Woollen Carpets’ (30.7%).

7.    Along with the Q.E. of IIP for the month of October 2011, the indices for September 2011 have undergone the first revision and those for July 2011 have undergone the final revision in the light of the updated data received from the source agencies. (It may be noted that these revised indices (first revision) in respect of September 2011 shall undergo final (second) revision in IIP for the month of December 2011)

8.    Statements giving Quick Estimates of the Index of Industrial Production at Sectoral, 2-digit level of National Industrial Classification (NIC)-2004 and by Use-based classification for the month of October 2011, along with the growth rates over the corresponding month of previous year, including the cumulative indices and growth rates, are enclosed.

Religare Finvest gets Rs150cr from Avigo Capital

Transaction complete for Compulsory Convertible Preference Shares (CCPS)

New Delhi, November 28, 2011: Religare Finvest Limited (RFL), one of India’s largest capitalized NBFCs and a wholly owned subsidiary of Religare Enterprises Limited, today announced that Avigo Capital (Avigo) has completed an investment of Rs150cr in the form of compulsory convertible preference shares (CCPS).

Religare Finvest Limited is on a fast growth trajectory, focusing on small and medium enterprises (SME) financing. It has recently successfully raised Rs754crore from a retail issue of non-convertible debentures earlier this year and its loan book size stands at Rs11,380cr(as on September 30, 2011). 

Avigo Capital, as an Indian private equity fund manager focuses on private equity investments in the country’s SME sector.

Confirming this development, Mr. Kavi Arora, CEO, Religare Finvest Ltd said: “We are pleased to announce the completion of capital infusion by Avigo Capital in Religare Finvest Limited. This transaction is a great milestone for us as it reaffirm sour commitment towards our SME-focused business model.”

“With this investment, we are well-positioned to capitalize on the existing business opportunities while delivering superlative value for all our stakeholders. We welcome Avigo to the Religare family.” He added.

Mr. Achal Ghai, Avigo Capital said: “Avigo Capital, an Indian private equity fund manager was formed in Sep 2003 with a focus on Private Equity Investments in the SME sector in India. As we strategically look for SME focused growth stage companies, we found an excellent opportunity in Religare Finvest Limited which is a SME focused non-banking financing company. We are happy to be part of the Religare family. This transaction is in sync with our investment philosophy and investee companies.”

About Religare Finvest Ltd –www.religarefinvest.com

Religare Finvest Ltd. (“RFL”) is a Systemically Important Non-Deposit Accepting NBFC, focusing on small and medium enterprises (“SME”) financing and capital market financing. Through its reach and focus on the SME segment and the broad product offering, RFL provides the debt capital to power the growth of the small and medium enterprise. RFL’s lending products aimed at providing financing to the SME segment include:

·         Loans against property      

·         Working capital loans

·         Loans against plant & machinery

·         Loans for Commercial vehicles & construction equipment

·         Loan against Marketable Securities

About Avigo Capital - www.avigocorp.com/

Avigo Capital, an Indian private equity fund manager was formed in Sep 2003 with a focus on Private Equity Investments in the SME sector in India. Avigo Capital manages Growth Capital & Buyout SME fund in India and seeks equity investments in pre-dominantly growth stage companies, across different sectors. Avigo has over USD 365 million under management and has successfully raised and invested two funds (Avigo SME Fund I and Avigo SME Fund II). Currently Avigo is in the process of investing its third Fund (Avigo SME Fund III), which had its final closing in June 2010 at USD 240 million. Till date Avigo have made more than 25 investments in 15 companies with successful exits from 6 of their portfolio companies.

Pipavav Defence issues preferential shares to international strategic investor

MUMBAI, November 22: Pipavav Defence and Offshore Engineering Company Limited has successfully delivered “The Golden Suek”, one no. 74,500 DWT Panamax Bulk Carrier toGOLDEN SAPPHIRE INC. nominated by GOLDEN OCEAN GROUP LTD., a company headquartered in Norway.

This is the largest dry bulk carrier ever built in India, Pipavav Defence said in its communique to BSE..

Pipavav Defence and Offshore Engineering Company Limited has successfully delivered “The Golden Suek”, one no. 74,500 DWT Panamax Bulk Carrier toGOLDEN SAPPHIRE INC. nominated by GOLDEN OCEAN GROUP LTD., a company headquartered in Norway.

This is the largest dry bulk carrier ever built in India, Pipavav Defence said in its communique to stock exchanges.

The Board of Directors of the Company, through resolutions passed by circulation has approved the following:


Increase in the Authorised Share Capital of the Company from Rs. 800 Crore to  Rs. 1,000 Crore.
Issue of up to 81,880,000 (Eighty One Million Eight Hundred Eighty Thousand) fully paid-up equity shares of face value of Rs. 10/- (Rupees Ten only) each of the Company to an International Strategic Investor (“the Investor”), in one or more tranches, at a price not less than Rs. 110/- (Rupees One Hundred and Ten only) per equity share or price to be determined pursuant to formula prescribed in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, whichever is higher, subject to the approval of Members of the Company and other requisite approvals.
The aforesaid investment will be a long term strategic investment in the Company. The Investor will initially subscribe to 5% of the paid-up capital of the Company and within specified time will increase its holding in the Company upto 10% of the paid-up capital of the Company.
The Investor is a leading and extremely reputed global conglomerate with strong interest in defence sector. The Investor will bring in critical technology required for manufacture of complex and critical equipments, systems required by armed forces i.e. Navy, Army and Air force. The Investor will have a right to nominate one director on the Board of the Company.

SKIL Infra denies Pipavav share sale rumours

MUMBAI, November 22 (Newsbank): SKIL Infrastructure Ltd has denied rumours that it has sold its shares held in Pipavav Defence and Offshore Engineering.

“Pipavav shares held by SKIL group are completely intact and not even a single share has been sold as rumored by some interested parties with vested interest to hammer down the prices in the last four working days,” said a SKIL spokesperson pointing out that “Until then, Pipavav shares have been one of the most stable mid-cap shares.”

SKIL Infrastructure Ltd. raised medium term and long term loans to acquire stake in Pipavav Defece of one of its shareholders M/s Punj Lloyd and from others in the open offer.

The said loans are a specific tenure loans for project financing and increasing the SKIL Infrastructure’s stake in Pipavav. Long term loans has 10 year tenure and medium term loans falls due between 2012 to 2014. We have the mechanism in place to repay the loans on time.

SKIL has offered adequate collateral security including shares it owns in Pipavav as NDU (non-disposable undertaking) and primary collateral.

None of the Pipavav shares held by SKIL group are on the margin funding.

“We would like to state categorically that Pipavav is India’s first world class and global scale infrastructure company engaged in building ships and other critical maritime assets for the export market, offshore industry and defence forces among others,” the spokesperson said.

Pipavav is making a good progress with a robust order book and the company’s intrinsic value is extremely strong. Its quarterly result announced on 18^th November 2011 was encouraging on a growth trajectory, he added.

Pipavav Defence is an underleveraged company from both; financial institutions appraisal of the project debt-equity ratio and compared to other peer groups in the market, being extremely conservative.

SKIL group is committed to pay back its loans to its lenders as per the mutual agreement as it has done in the past 20 years.

Infosys tops Investor Relations Global Rankings

• IRGR maiden event rocks at BSE
• Concept PR's efforts highly appreciated

MUMBAI:  Bagging four awards in different categories, Infosys has walked away with top honours at the first event of the Indian Investor Relations Global Rankings’ award, which provided a unique platform to the Indian corporate sector to benchmark investor relations practices against their global peers.

 The IR Global Rankings (IRGR), the world renowned ranking body that indexes companies globally, has done the exercise for the first time for the BSE and NSE listed entities and over 100 companies registered themselves for the rankings. Instituted in 1999, this was the 13th edition of the rankings that were earlier conducted at New York, Amsterdam, Beijing, Sao Paulo and Taipei.

 IRGR is regarded as the most comprehensive ranking system for investor relations practices that include corporate governance practices and financial disclosure procedures. The ranking is based on an extensive technical proprietary research of publicly traded companies through a clear and transparent methodology and is supported by key global institutions such as Arnold & Porter, KPMG, MZ and Sodalie.

 Mr Madhu Kanan, MD and CEO of BSE that hosted the award event, said the rankings and awards were a good way to recognize performers of the best IR practices.

 Ms. Luar Huber, Head of IR Global Rankings, said: “We are overwhelmed with the response in India and I am sure going forward more and more companies would come forward to their IR practices.”

Co-organised by Concept PR, the afternoon started off with an interesting panel discussion on “Creating shareholder Value through Investor Relations – Trends and Challenges in Emerging Markets.”The discussion, moderated by Ms. Damini Kumari, Senior Editor, ET Now, had India’s leading five corporate  leaders as participating panelists - Mr. Amit Tandon (MD, Institutional Investor Advisory Services), Mr. Vikram Kotak (CIO Birla Sun Life Insurance LTD), Mr. Nirmal Jain (Chairman, IIFL), Mr. Nalin Nayyar (MD, Head – India Investment Banking, Religare Capital Markets ltd) and Mr. Kumar Ramachandran (Managing Director, Concept IR).

Infosys, Sun Pharmaceuticals, Tata Consultancy, Tata Steel, Wipro, Aditya Birla Nuvo, Edelweiss Capital Limited, Kotak Mahindra Bank, Persistant Technologies, Oberoi Realty, Godrej Consumer Goods, Piramal, Godrej Properties, ONGC, NTPC, ICICI Bank, Hindustan Unilever Limited, Pipavav Defence and Offshore and Power Finance Corporation were among those companies that participated in the rankings.

 The other awardees in each category were :

 1. IR WEBSITE : Firstsource Solutions Ltd, Tata Consultancy Services, Kotak Mahindra Bank Ltd, Wipro Limited & Infosys Technologies
 2. CORPORATE GOVERNANCE : Nucleus Software Exports, Hindustan Unilever Ltd, Persistent Systems Ltd,
3. ONLINE ANNUAL REPORT & FINANCIAL DISCLOSURE : Infosys Technologies

IDBI Federal launches insured wealth plan

§   Wealthsurance Dreambuider offers flexible, customized investment options

§   Covers 17 major diseases, hospitalization and accidental injuries

MUMBAI, August 8, 2011: Private life insurer IDBI Federal Life Insurance today announced the launch of its new ULIP called Wealthsurance® Dreambuilder Insurance Plan which will enable customers to save and build wealth under the protective cover of insurance.

Wealthsurance® combines wealth creation and insurance protection into one powerful financial solution. With a minimum premium amount of Rs 25,000 per year and maximum Rs. 1,00,000,  Wealthsurance® Dreambuilder Insurance Plan offers a wide range of insured wealth plans.

Announcing the launch of the new plan, Mr. G V Nageswara Rao, MD & CEO of IDBI Federal Life Insurance said “It is everyone’s dream to create wealth and enjoy quality life, but wealth creation does not happen by chance or accident. It needs a Plan. Wealthsurance® Dreambuilder Insurance Plan can help customers realize their dreams and enjoy the benefits during their lifetime. It is very flexible and can be customized to an individual’s needs with 13 different fund options to choose from. A key attribute of the Plan is that it can be insured not only against risk of death but against 17 major diseases, hospitalization, disability, accidental injuries etc so that you can feel confident that your financial goals can be reached despite the surprises life may throw up. To encourage long term investments, the plan boosts your funds through Guaranteed Loyalty Additions at the end of 10th policy year and every 5 years thereafter to reward customers for staying committed for the long term.”

Wealthsurance® Dreambuilder Insurance Plan offers a comprehensive suite of investment options which are designed to meet the needs of every customer depending upon his or her risk appetite. For instance, conservative customers can choose guaranteed return options which offer fixed, assured returns. Those who can take risks can opt for capital protected options where the entry NAV is guaranteed and returns depend upon the market. Customers who would like to get potential high returns of equity markets in the long-term and understand the risk can opt for market linked equity options.

IDBI Federal Wealthsurance® Dreambuilder Insurance Plan also provides a host of insurance benefits to protect the customers against uncertainties, so that they don’t have to break their investment to meet sudden financial demands and their money can keep compounding. In addition this Plan also offers partial withdrawals facility if funds are required before maturity.

The insurance benefits offered by the Plan include lump-sum cash amounts up to Rs. 20 lakhs to be paid upon diagnosis of any of 17 specified major diseases. These include heart attack, coronary bypass surgery, cancer, stroke, paralysis, coma, brain tumor, renal failure, major organ transplant etc.

“The plan offers a unique investment options called Asset Allocator Funds, where the company’s fund managers invest in equity or debt depending upon market conditions. This is a very useful option for those who do not have the time or expertise to monitor equity market and shift into debt or equity investments depending on market conditions. Moreover policyholder can boost their investments with Guaranteed Loyalty Additions which will be given at the end of specific terms as a reward for long-term investment. The Plan comes with attractive tax benefits. Premium contributions are eligible for tax deduction under Sec 80C. All benefits under the Plan are tax-free under Sec 10(10D),” Mr. Rao added

Another feature is Hospital Cash Benefit in which daily cash up to a maximum of Rs. 5000 per day will be paid for each day of hospitalisation, irrespective of the amount actually spent. The claim process is simple since no bills have to be submitted but only proof of hospitalization is enough. Other benefits include accidental death and disablement benefit and waiver of all future premiums upon death or disablement.

Indian economy poised for great heights, says Economic Survey

Robust growth and steady fiscal consolidation have been the hallmark of the Indian economy in the year 2010-11 so far. The growth rate has been 8.6 percent in 2010-11 and is expected to be around 9 percent in the next fiscal year. The growth has been broad based with a rebound in the Agriculture sector which is expected to grow around 5.4 per cent. Manufacturing and Services sector have registered impressive gains. Savings and investment are looking up while exports are rising. However food inflation, higher commodity prices and volatility in global commodity markets have been a cause of concern underscoring the need of fiscal consolidation and stronger reserves. These are some of the high points of the Economic Survey 2010-11, presented by the Finance Minister Shri Pranab Mukherjee in Lok Sabha today.

Recognizing the fact that inflation continues to be high even though it has come down markedly from where it was at the start of the fiscal year, the Survey underlined the need to monitor emerging trends in inflation on a sequential monthly basis. In order to check food inflation, it has suggested, the Government should improve the delivery mechanisms by strengthening the institutions and addressing corruption. The survey has pointed out that the inflation is expected to be 1.5 percent higher than what would be if the country was not on the growth curve.

The Survey has observed that a rise in savings and investments and pick up in private consumption has resulted in 9.7 per cent growth of GDP at market prices (constant) in 2010-11.Savings rate has gone up to 33.7 percent while the investment rate is up to 36.5 percent of GDP in 2009-10.

The Survey points out that the agriculture sector growth in the first four years of the 11th Plan (2007-12) is estimated at 2.87 per cent. The foodgrain production went up to 232.1 billion tonnes from 218.1 billion tonnes in 2009-10. With a relatively good monsoon the agriculture-sector is expected to grow at 5.4 per cent during 2010-11. The rising food inflation and the critical role of agriculture underline the need for a larger investment in agriculture enroute to the second green revolution.

The Survey reports that the industrial output growth rate was 8.6 per cent while the manufacturing sector registered a growth rate of 9.1 per cent in 2010-11. During April-November 2010 telecom, crude oil production, civil aviation sectors performed well while the power generation, cement and fertilizer production, railway freight traffic and cargo handling at major ports have grown at comparatively lower rates. Six core industries registered a growth of 5.3 per cent (provisional) in April-December, 2010 as against 4.7 per cent during the same period in 2009-10.

Economic Survey 2010-11 has highlighted the increasing role of infrastructure services which have been deepening rapidly with rising investments. However unmet gaps still remains large and accelerated investments will be needed in the next Plan period for addressing delays, cost overruns and regulatory and pricing impediments. The telecommunications sector has done exceedingly well as the tele density has increased from 20.74 per cent in 2004 to 143.95 per cent in 2010 in urban areas. While in the rural areas it has gone up from 1.57 per cent in 2004 to 30.18 per cent in 2010.

Lauding the role of services sector as the potential growth engine, the Survey has called for the policies to promote further opportunities in new areas in global demand such as accounting, legal, tourism, education, financial and other services beyond the IT and business process sectors.

The Survey points out that the exports in April-December 2010 went up by 29.5 per cent while the imports during the same period registered a growth rate of 19 per cent. The trade gap narrowed down to US $ 82.01 bn in the same period. Balance of payment situation has improved due to surge in capital flows and rise in foreign exchange reserves which have been accompanied by rupee appreciation. During current fiscal foreign exchange reserves increased by US $ 18.2bn from US $ 279.4 bn in end April 2010 to US $ 297.3 bn in end December 2010.

The inclusive growth agenda of the Government is reflected in the 59 per cent rise in Net Bank Credit . The expenditure on Social sector programs has been stepped up by 5 percent point of GDP over the past five years.

The Survey points out that Gross Fiscal Deficit is 4.8% of GDP in 2010-11 as against 6.3 percent of GDP in the previous year. The Revenue deficit in the current financial year has been 3.5 percent of GDP as against 5.1 percent in the previous year.

The Economic Survey 2010-11 has expressed satisfaction at the progress of fiscal consolidation and the role of monetary policy on tackling inflation, ensuring availability of funds and expansion of credit growth. It has called for efficient taxation of goods and services by a new GST, raising revenues, installing stronger safeguards and measures to accelerate financial inclusion.

The Economic Survey 2010-11 has lauded the Government’s efforts in addressing social and financial inclusion. The specific schemes for Scheduled Castes, Tribes, OBCs and the regions such as North-East, expansion of Mahatma Gandhi NREGA, Sarva Shiksha Abhiyan , National Rural Health Mission, in terms of coverage as well as the spending and monitoring have found specific mention in the report. The survey has advised that a better convergence of the schemes to address the issues of unemployment and poverty alleviation could avoid duplication and leakages.

A call for reforms in the university and higher education and correcting the demand supply mismatch in the job market has been made in the report. It says the gap in resources for higher education may be met on the basis of public private partnership without diluting the regulatory oversight of the Government.

The Survey has also made specific mention of Government’s active engagement on issues related to climate change with expanded financing of programs and better policies.

The Economic Survey has suggested that in the long run the potential engines of growth for the country could be from skill development and innovative activity and therefore, efforts should be made to promote them.

Regarding the outlook for the Indian economy, the Survey says that despite the risks of global events, such as volatility in commodity prices like crude oil exacerbated by political turmoil in the Middle-East, the Indian economy seems poised to scale greater heights in terms of macro economic indicators. It sums up by stating that the real GDP growth is expected to reach the 9 per cent mark in 2011-12 and the next two decades may well see the economy growing faster than it has done any time in the past. (PIB)

Columbian Chemicals into Aditya Birla Grp fold

Birla Carbon announces agreement to acquire Columbian Chemicals
The acquisition will catapult Birla Carbon to become a leading global player


MUMBAI: The Aditya Birla Group today announced that it has entered into a definitive agreement to acquire the Atlanta based Columbian Chemicals Company, from One Equity Partners, the merchant banking arm of J. P. Morgan Chase & Co.

The Aditya Birla Group has bought One Equity Partners’ equity in Columbian Chemicals through its associates, Alexandria Carbon Black Company and Thai Carbon Black Company Limited along with SKI Investment, an Aditya Birla Group Company.

Briefing the media on this significant development, Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “The acquisition of Columbian Chemicals catapults Birla Carbon to become a leading player globally in this sector, by raising its annual production to 2 million tons.  We look upon the carbon black business as a core business that has a strong growth potential both in terms of revenues and earnings. This acquisition is in keeping with our objective of being a leader in every business that the Group operates in. The Aditya Birla Group’s Carbon Black business and that of Columbian Chemicals complement each other. This acquisition will create a business which will have the advantage of cutting edge technology and low costs, and will have a truly global footprint.”

 “Our vision has been to be a premium carbon black player, global in size and reach.  The acquisition of Columbian Chemicals, which takes us closer to our vision, is a perfect fit for Birla Carbon.  Their assets and the expertise of the team will provide a stronger platform for higher growth and ongoing success” averred Mr. Birla.

Dr. Santrupt Misra, CEO, Birla Carbon and Director, HR, of the Aditya Birla Group, added – “We look forward to leveraging the strengths of both Columbian Chemicals and Birla Carbon. Their world-class service coupled with that of Birla Carbon, positions us well.  Additionally, Columbian Chemicals accords us access to markets that we currently do not serve, thus enhancing our geographic reach.  Columbian Chemicals also has a very strong Research & Development team of scientists engaged in process, technology and innovative products development.  Columbian Chemicals has a rich legacy, a committed workforce and values that are in sync with our Group values”.

The Aditya Birla Group is one of the most cost efficient manufacturers of Carbon Black.  Its operations span four countries, with six manufacturing plants.  It caters to the requirements of leading tyre manufacturers globally. Columbian Chemicals operates 11 plants in 9 countries.

The acquisition is subject to customary approvals.  The deal is expected to attain closure in the second half of CY-11.

ANZ, BankAM, HSBC, RBS and StandChart are participating in the financing of the transaction and were also the financial advisors for this deal.

KPMG were our tax and accounting advisors, and Shearman & Sterling LLP, the legal counsel.