Investment In India | "Hero, investment arm to merge"

By : The Times Of India
Source : http://timesofindia.indiatimes.com
Category : Investment In India

NEW DELHI: Hero MotoCorp, the country's largest two-wheeler manufacturer, on Monday said it intends to merge Hero Investments, the parent's investment arm, with itself. Apart from the firm Brijmohan Lall Om Prakash, which owns a 71.6% stake in Hero Investments, the shareholding of private equity funds Bain Capital and the Government of Singapore Investment Corp (GIC), which helped fund the Indian promoters' buyout of Honda in the joint venture Hero Honda, would also be affected by the transaction.

Bain, through BC India Pvt Investors, and GIC, via Lathe Investment, hold 28.4% in Hero Investments. While the deal has been approved by the Hero MotoCorp board, it will need shareholder and other regulatory approvals. Following the merger, BC India will own 8.6% of Hero MotoCorp and GIC's Lathe Investment will have another 3.7%, the company said in a statement. Munjals, the promoters, own 52.2% in Hero MotoCorp through Hero Investments.

"The merger of Hero Investments in Hero MotoCorp is going to benefit shareholders of Hero MotoCorp as this will result in an increase in the public float by approximately 12.3%," it added.

Source : http://timesofindia.indiatimes.com/business/india-business/Hero-investment-arm-to-merge/articleshow/13831065.cms

Investment In India | "Rs 50k cr pvt investment in airport projects"

By : The Indian Express
Source : http://www.indianexpress.com
Category : Investment In India

Buoyed by the Rs 30,000 crore private sector investment in airport projects during 2007-12, the government plans to attract Rs 50,000 crore more in the 12th Plan from private and foreign sources to push some big ticket projects this year itself.

The government estimates that a whopping Rs 67,500 crore would be required to develop and modernise airports during the 12th Plan period, of which the Airports Authority of India (AAI) would contribute Rs 17,500 crore.

While the balance of around Rs 50,000 crore has to be brought in by the private sector, official sources said "this large amount may require significant contribution from global investors as well."

Keeping in mind this big ticket investment needed over the next five years, the government has evolved a draft policy blueprint on tariff regulation at a large number of airports which are not under the ambit of the Airports Economic Regulatory Authority (AERA) that currently regulates tariff for only 15 of them.

India has 456 airports and airstrips spread all over, many of them built before or during World War II. Of these, only 84 are currently operational.

A draft policy, prepared recently, advocates that the service quality of all activities at an airport and the charges levied by them on the passengers, either directly or through the airlines, "are regulated with due prudence".

The draft also proposes that when an airport starts getting regulated by the AERA, "Government can issue directions to AERA, on case to case basis, for continuation of the economic regulatory philosophy through which the airport was being regulated by the Ministry".

Source : http://www.indianexpress.com/news/rs-50k-cr-pvt-investment-in-airport-projects/957313/

Investment In India | "Maruti to invest Rs 4,000 crore in Gujarat, to set up new plant"

By : IBN Live
Source : http://ibnlive.in.com
Category : Investment In India

New Delhi: Country's largest car maker Maruti Suzuki India on Saturday said it will invest Rs 4,000 crore, its biggest ever outside Haryana, to set up a new production facility in Gujarat by 2015-16.
Besides, components suppliers of the company are also likely to make an equal amount of investment to set up their respective plants at the location.
Maruti Suzuki India (MSI) said the new 700-acre plant near Mehsana will be set up in a phased manner with an initial investment of Rs 4,000 crore by 2015-16. The overall capacity in the first phase will be 2.5 lakh units. "In addition to Maruti Suzuki, the company's vendors and ancillary suppliers are expected to invest in Gujarat at matching levels," MSI said in a statement.
The Gujarat unit will be the company's 7th production plant and its biggest ever investment outside Haryana, where it has been based since its inception in 1983.
MSI's announcement to set up its facility in Gujarat is among the big investments announced in the recent past by auto firms, including Tata Motors' Nano plant at Sanand and Ford's second plant.
The plant in Gujarat will generate direct employment for over 2,000 people, MSI said. "In addition, the ancillary units in the vicinity and supplier park will generate additional employment opportunities," the company said. At present, MSI employs a total of 9,148 people as on March 31, 2012.

Source : http://ibnlive.in.com/news/maruti-to-invest-rs-4000-crore-in-gujarat/263919-7.html