All posts by Abhishek Chauhan

Mr. K. T. Rama Rao Lays Foundation for BE’s Vaccine SEZ Plant

Hyderabad, India – February 6, 2017: Mr. K. T. Rama Rao, Honourable Minister for Industries & Commerce, IT, Municipal Administration & Urban Development, unveiled the foundation for a new vaccines plant being constructed by Biological E. Limited (BE) in the Special Economic Zone (SEZ) at Genome Valley in Kolthur Village, located on the outskirts of Hyderabad. The Minister was accompanied by Dr. Paul Stoffels, Worldwide Chairman, Pharmaceuticals, Johnson & Johnson (J&J), Ms. Mahima Datla, Managing Director, BE, Mr. Jayesh Ranjan, IT Secretary, Soumya Swaminathan, Director-general, Indian Council of Medical Research, and Mr. M. Sudheer Reddy, Medchal MLA, at the inaugural event of laying the foundation.

Addressing the gathering on this occasion, the Minister appreciated the expansion efforts of Biological E. Limited in being aligned with the State Government’s vision of industrial expansion, creation of employment and the commitment to make Hyderabad an industrial hub in India and thus realise the dream of the honourable Chief Minister, K. Chandrashekar Rao – the creation of Bangaru (/Golden) Telangana. He fondly recalled that BE, as one of the foremost Pharmaceutical & Biologics Companies in India, being based out of the State of Telangana, in addition to substantial exports of vaccines, contributes significantly to the Universal Immunization Programme launched by the Government of India.

Welcoming the gathering, Ms. Mahima Datla, Managing Director, BE, thanked the Honourable Minister and Dr. Stoffels, for laying the foundation for the new vaccines plant at the recently approved SEZ. The MD also appreciated the efforts of the Government of Telangana in general and Mr. K T Rama Rao in particular for helping the investors and entrepreneurs in setting up new ventures and industries and creating a conducive environment for smooth execution of business operations.

Elaborating further about the plant, Ms. Mahima said that BE is planning an initial investment of up to Rs.300 crore in this new plant, which would help the existing vaccines plant augment the production and manufacture new products that are in the pipeline. This investment is in line with and part of the already earmarked overall outlay of Rs.1000 crore in the Genome Valley across BE’s Vaccines & Pharma businesses that are underway. The construction of this new SEZ vaccines plant on about 29 acres of land would be completed by April 2018 and commercial production is expected to begin by December 2019. Ms. Mahima also said that by the time BE’s expansion initiatives in the Genome Valley are completed, an additional employment opportunity for around 1000 people would be generated.

About Biological E. Limited

Biological E. Limited (BE), founded in 1953, the first private sector biological products company in India and the first pharmaceutical company in South India. Originally incorporated as Biological Products Private Limited, BE is a globally recognized vaccine manufacturer and has supplied over two billion doses of vaccines till date all over the world.

BE supplies several essential and lifesaving Vaccines and Pharmaceuticals to UN Agencies viz. UNICEF, PAHO and several global markets, and in India to the National Immunization Programme, various State Governments, PSUs, Indian Armed Forces and the domestic retail market. With a mission to improve health & survival of people, BE serves by providing equitable access to quality vaccines and therapeutics. BE has a long and richly textured history of supporting public health programmes in India for over five decades. BE’s portfolio of WHO pre-qualified vaccines include the 5-in-1 Pentavalent and a Japanese Encephalitis vaccine and its future offerings promise to be even more exciting.

DLF Registers 28 Percent Decline in Q2 Net Profit

Real estate major DLF has registered 28 percent decline in net profit for second quarter. The biggest real estate company in India witnessed decline of 4 percent in income from operations, which stood at Rs 1956 crore compared to Rs 2039 crore during same period last year.

The consolidate net profit of DLF stood at Rs 100 crore compared to Rs 138 crore for the same period last year. The company incurred expenses of Rs 1527 crore compared to Rs 1476 crore during the quarter under review.

Real estate companies in India have seen lower margins and less number of sales due to slowdown in realty market in India. Many projects have been delayed by developers due to scarcity of funds and higher rates in Indian market. Buyers have also declined over the past few years due to higher interest rates. Also, many buyers are expecting real estate developers to reduce the prices and they are still waiting for better deals. In major cities, the slowdown in real estate has resulted in higher inventory levels for developers.

DLF currently has 52 million square feet area under construction for various projects. The company stock was trading marginally down in today’s trade. The stock has touched 52-week high of Rs 289 and low of Rs 120 on NSE.

Indian Stock Indices Trade Marginally Higher; Asian Stocks High

Indian Stock Markets opened marginally higher and banking stocks have continued from yesterday’s rally. Axis Bank and SBI were among major gainers in early trades. BSE Sensex was up by 15 points while NSE Nifty was higher by 3 points.

Among banking stocks, Federal Bank, Union Bank, Axis Bank and Bank of India were up by more than a per cent. PNB, Kotak Mahindra, IndusInd Bank, SBI, Bank of Baroda, Yes Bank and Canara Bank were trading higher.

Among sectoral indices, BSE Auto was up by 86 points. BSE HealthCare was up by 45 points and BSE Metals index was also positive. IT, Oil & Gas and Capital Goods stocks were trading lower.

Aashish Tater of Fortunewizard. com has suggested Omkar Speciality Chemicals as a multbagger stock during at interview with CNBC-TV18. He has also suggested investors to buy Lanco Infratech with a medium term view for decent gains.

Indians Buying More Gold Even as Worldwide Demand Remains Low

Indians are buying more gold even when the yellow metal is ruling at its all time high prices. Many experts were expecting that the price rise in Gold could impact the consumption of the precious metal but Indians have proved them wrong.

More people are buying gold and many of them buy it as an investment for long term. Global gold demand registered a decline of 11 per cent during third quarter of 2012. China and India are among major consumers of Gold. The gold purchases in China witnessed decline of 8 per cent during the same period.

Indian gold consumption went by 9 per cent in third quarter. The price of gold has been ruling higher in India due to rise in value of US dollar compared to Indian currency.

However, investors are finding gold as a safer investment and this has pushed the demand for the yellow metal. The recent trends in real estate market have been bearish. Due to lower returns on real estate investments, some investors are churning their funds and investing in Gold.

The demand for Gold coins and bars in Germany has witnessed steep fall. In Indian market, the price of gold was trading at Rs 31,596 per 10 grams.

Will Indian Retailers Allow FDI?

There seems to be no end to the controversy surrounding FDI in retail for the Indian Government as mass protests across all the states are not soothing out. While parliament is not reaching at any consensus at all on the same, there are over 6,000 traders in Shimla who have closed their shops to oppose the decision.

Adding fuel to the fire in the joint opposition by Bharatiya Janata Party (BJP) in the state and Communist Party of India-Marxist (CPI-M), which are hell bent to jolt the government. As of now, no reports of violence have been received.

“We have got very good response from across the country and 5 crore traders will not open their shops tomorrow. They will hold protest in their own markets. We will not hold demonstrations in front of foreign stores”, said Praveen Khandelwal, Secretary-General of the Confederation of All India Traders association. Backed by support from other states, there seems to be no early breather for the government.

Apparently, there are confirmed reports that several Bharti-Walmart stores would be shut down on Thursday to avoid any violence. Even security has been escalated at stores of World’s second largest retailer Carrefour in Delhi and Jaipur as a part of precautionary measures. Meanwhile, such similar shutter down operation was seen in Karnataka against the government’s decision to allow 51% the FDI in retail.

Nonetheless, the government has assured that there decision in favor of public interest, there are lingering fears in the minds of retailers that there would be threat to their presence in case such malls are being set up in their states.

There are countries like US where such decisions have affected many small stores, and that’s what has made retailers to put up strong opposition for the entry of foreign players in the retail market. While government would be putting up their best efforts, it would be interesting to see how they would seam through the fierce attack of retailers and opposition parties.

Bosch Along With Siemens To Set Up Manufacturing Facility In Tamil Nadu

Europe’s biggest home appliances manufacturer BSH Bosch together with the Siemens Group, have decided to make a joint investment of around Rs 500 crore to establish a manufacturing plant near Chennai.

The German firm, via its arm BSH Household Appliances Manufacturing Pvt Ltd, proposes to make home appliances at the novel unit.

As per official statement, the company has requested the state administration to provide 42 acres at Sipcot Industrial Park in Pillaipakkam for establishing the plant, which will manufacture air-conditioners, refrigerators as well as washing machines.

Acceding to its request, Chief Minister Jayalalithaa duirng a function delivered the Letter of Allotment of land to Bosch’s Zonal Manager V K Viswanathahan.

With the establishing of the novel plant, the company would offer up jobs to 2,000 individuals.

Moreover, electronics giant Samsung has made an investment of more than $100 million in their plant in Sriperumbudur .

Panasonic also possesses a plant in Sholavaram and Chennai is also home to original equipment makers like Foxconn and Flextronics.

Maruti Suzuki Proposes Rs 6000 Cr Medium Term Investment

Maruti Suzuki has eyed a medium term investment of Rs 6,000 crore, portion of which will be used to fabricate vehicle stock yards in India by the next 1-2 years.
After introducing the novel edition of ‘Swift’, Maruti Suzuki Chief General Manager (Marketing) Shanshank Srivastava stated, “Maruti Suzuki has planned a medium term investment of Rs 6,000 crore for building of stock yards and manufacturing unit in the country.”
Country’s biggest car manufacturer launched its initial stock yard with a capacitance to park 2,000 units in Bangalore that recently turned functional.
The second yard would be introduced Nagpur, whilst the sites for some others are yet to be determined.
Mr. Srivastava added that one of the yards would also be set up in Madhya Pradesh.
Out of the said Rs 6,000 crore investment, about Rs 1,800 has been spent on the company’s second manufacturing facility at Manesar near the national capital, which would be ready shortly.
Around Rs 1,900 crore will be invested on the third division, which will also come up at Manesar.
Remaining finances would be used on a research and development plant at Rohtak, stock yards and brand centres.
Maruti Suzuki envisages establishing 14 brand centres in India to exhibit its products.
While talking after the introduction of the novel ‘Swift’, he said, Maruti Suzuki’s sale chart had grown sharply with around 12,000 units being sold on a monthly basis in the country.

BHEL Eyeing Construction Plant In Maharashtra

According to senior company representative, engineering giant BHEL is planning to establish a manufacturing plant in Latur in the state of Maharashtra.

Executive Director of BHEL (Tiruchy complex) AV Krishnan stated, “The Maharashtra government has evinced interest to offer adequate land for the project. The product would be something allied to thermal power generation.”

Mr. Krishnan also said that the company board was yet to settle on the precise product variety, mass and investment for the novel project that he showed would fall under the influence of BHEL.

BHEL complex consists of high pressure boiler facility and seamless steel tube facility in Tiruchirappalli, piping centre in the state of Chennai and industrial valve facility at Goindwal in Punjab.

In addition, the construction plant in the state of Maharashtra, talks were going on with Maharashtra Power Generation Corporation to set up a 660 mw thermal power station in the state.

BHEL is also making plans to establish a two mw solar power generating facility in its complex with a total investment of Rs 17 crore.

“A detailed project report had been submitted to the BHEL Board for the formal approval,” he said, adding it would become functional in a time period of 11 months once the panel gave its green signal.