Category Archives: Company

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.

Reliance Power Reaches Agreement with JP Group to Acquire Hydroelectric Business

Reliance Power has reached an agreement to acquire 1,800 mega watt hydropower assets of Jaypee Group. Reliance CleanGen, a unit of Reliance Power, will acquire 100 percent stake in the hydroelectric power business of Jaypee Group.

The financial terms of the deal have not been disclosed yet. After the deal, Reliance Power will become the largest private sector company in India in hydroelectric sector with combined capacity of 7,800 mega watts.

SBI Capital Markets has acted as the advisors to the group for the deal which marks the biggest deal in the power sector in India.

Jaypee Group had earlier offloaded its hydroelectric power projects in Himachal Pradesh to Abu Dhabi based energy major for Rs 10,500 crore. The deal could not be finalized.

Reliance Power was trading around Rs 93 in today’s market. The stock has touched 52-week high of Rs 112 and low of Rs 60.

Indian Stock Market near Lifetime High; Waiting Election Results

Indian stock market is trading near its lifetime high and investor community is waiting for results. While many market and technical analysts have downplayed the role of politics and have said that Indian economy is strong, there is growing concern over the next government in India.

The ongoing elections have created an uncertainty in the mind of investors. Markets are staying range-bound and waiting for election outcomes on 16 May.

The business community favors a stable government. There is growing consensus that the major opposition party BJP could make the next government. However, the AAP factor could spoil the BJP campaign. Many regional parties have also decided to keep BJP out of power. The future of the country will depend on the number of seats NDA combine will get in the elections.

Among Indian stocks, major gainers on Friday were Tata Power, Ambuja Cements, Lupin, BPCL and HCL Tech. Among major losers were Jindal Steel, Tata Steel, Larsen, Sesa Sterlite and Maruti Suzuki.

The earnings season has some positive surprises for investors. While automobile sector is suffering due to lower sales, Bajaj Auto has managed to increase its market share to 20 percent compared to 17 percent in December.

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.

Ranbaxy Reports Loss of Rs 454 Crore for Quarter Ending September

Ranbaxy Laboratories has reported Rs 454 crore loss for quarter ending September 2013 on 3.4% rise in revenues. The biggest pharmaceutical company in India has been suffering for past few years due to regulatory troubles with US FDA.

Ranbaxy Labs reported profit of Rs 754 during the same quarter last year. The company also suffered on account of stock write-off worth Rs 70 crore at Mohali plant. The company registered forex loss of Rs 360 crore during the quarter.

The revenue was up by 3.4% at Rs 2802 crore. The company registered Rs 480 crore sales in East Europe. The sales in West Europe were down by 31 percent. The company managed to grow marginally in Africa and Middle East.

The company has disappointed investors on many occasions in the past couple of years. Even after the Japanese pharmaceutical company took over the control of Ranbaxy, things haven’t improved much. The stock seems over-valued at current levels, considering the issues like FDA alerts on all its plants in India.

Stock Markets Trade Flat; Aptech, HCL Tech Zoom

Stock Markets were trading flat in the afternoon session on Thursday. BSE Sensex was down by 30 points at 19960 while NSE Nifty was trading with a loss of 11 points. Most of the heavyweight index stocks were trading flat.

Among major gainers in today’s session were PNB (trading 4.8% higher), HCL Tech (trading 3.8% higher), Ambuja Cements (up by 2%) and Aptech (trading with gain of over 11%). HDFC touched 52-week high of Rs 900 in today’s trading session.

Among major losers were Sun Pharma, Ranbaxy Labs, Axis Bank and NMDC. Standard Chartered has expressed positive sentiment about the earnings for fourth quarter from majority of Indian companies.

German car maker BMW’s Indian arm received Rs 650 crore showcause notice from Income Tax department.

Indian markets are expected to remain rangebound for today’s session. Asian markets closed mixed on Thursday.

Reebok India Alleged Fraud Cost Euro 153 Million to Adidas

Reebok India alleged fraud last year has put 153 million euro dent on the balance sheet of German sportswear maker Adidas. In year 2012, Reebok India filed FIR against two top officials of the company.

The investigation is currently on and ex-Managing Director Subhinder Singh Prem and ex-COO Vishnu Bhagat are under investigation for their alleged involvement in the fraud.

Adidas Group changed top management this year by bringing Erick Haskell from China operations to lead Indian team. The company also offered voluntary retirement to 84 employees last year. The company has also reduced its store count in India to reduce costs.

Adidas CEO Herbert Hainer announced that 2012 was successful year for Adidas Group with the company managing to grow its overall sales by six percent. The company registered 14.9 billion Euro sales in 2012.

Indian Stock Market Trades Higher; DLF and Hero MotoCorp Gain

Indian Stock Markets were trading marginally higher during afternoon trade with Hero MotoCorp, Maruti Suzuki and DLF among major gainers. At 14.28 pm IST, BSE Sensex was up by 46 points at 19300 while NSE Nifty was trading higher by 10 points at 5828.

European markets have opened marginally higher. FTSE was up by 0.2 per cent at 6440. DAX and CAC were also marginally higher.

Among major gainers in today’s trade were Hero MotoCorp with gain of 4.2% at Rs 1716. Maruti Suzuki was higher by 1.8% at 1450. DLF and Larsen were up by nearly 2 per cent.

Among major losers were Jindal Steel, HUL, Tata Motors and Ambuja Cements. Reliance, ONGC and Coal India were trading marginally lower.

Indian currency was slightly higher compared to US dollar and Euro. Gold was trading at Rs 29555 for 10 grams in Mumbai market while Silver was at Rs 55050 for 1000 grams.

AirAsia Gets FIPB Approval to Start New Airline in India

AirAsia has received approval of Foreign Investment Promotion Board for setup of new airline in India. The Malaysia based budget airline has jumped in Indian aviation sector by setting up a joint venture with Tata Sons and Telestra Tradeplace. Tata Group was planning to enter aviation sector for quite some time.

After the modifications in FDI policy in September 2012, AirAsia is the first airline to enter domestic aviation sector in India. Domestic travelers in India can expect lower airfares as the new airline company will try to cut the market share of other players.

In Indian domestic aviation sector, Indigo Airlines and GoAir have been doing very good. Jet Airways and Air India are also prominent players in domestic aviation space.

Jet Airways is also looking to expand its base in India with investment from Abu Dhabi based Etihad Airways.

The Tata Sons-AirAsia joint venture company will operate from Chennai. The company will focus on Tier-II and Tier III cities connectivity by air routes. AirAsia will be involved in operations of the airline while Tata Sons will be holding 30 per cent stake in the company with negligible operating role.

Indian Stock Market Gains Marginally; Dr Reddys Labs Touches 52-week High

Indian Stock Market gained in the last two hours of trading session. The market was helped by the buying witnessed in HDFC and ITC. BSE Sensex closed 51 points higher while NSE Nifty closed 13 points higher.

Pharmaceutical major Dr Reddys Labs touched 52-week high of Rs 1921 and the stock closed at Rs 1908. Idea Cellular also touched 52-week high of Rs 112. Other stocks touching 52-week high included ING Vysya Bank, K Sera Sera, Cipla, Bank of Maharashtra, Marico, Nahar Spinning, Pantaloon Retail, Oracle Financial, RS Software and SBI.

Indian Currency gained compared to US dollar and Euro. Gold price remained flat while Silver was up by 0.4%.

Fitch Ratings has again raised the alarm against the Indian economy and growth outlook. The rating agency has cited high fiscal deficit as a reason for upcoming downgrades for Indian economy.

Finance Minister was quick to respond to Fitch’s report of future downgrades for India. He added that India is not concerned about downgrade as he is confident of containing the fiscal deficit.