Foreign Investment In India | "India shines in Asia on stable earnings, reform hopes"

By: BS Reporters
Source: http://www.business-standard.com
Category: Foreign Investment In India

Despite a worsening macroeconomic scenario, overseas investors continue to prefer Indian shares over their emerging markets and Asian peers due to stable corporate earnings, expectations of government action and increasing probability of further global monetary easing.

Foreign institutional investors (FIIs) have poured in about Rs 62,412 crore ($11.76 billion) into Indian shares this year till August 27, Securities and Exchange Board of India (Sebi) data showed. This is the highest among Asian countries for which Bloomberg compiles data.The Bombay Stock Exchange (BSE) benchmark, Sensex has gained 13 per cent so far this year in rupee terms (7.6 per cent in dollar terms), making India one of the best performing markets in Asia. Indian shares have also outperformed other emerging markets like China, Russia and Brazil during this period. According to JP Morgan, Indian equities have outperformed other emerging markets in the last three months on expectations that the government would act. The foreign bank is of the view that the markets are hoping for government measures like a diesel price rise, allowing or increasing direct foreign investment limits in multi-brand retail and aviation and faster clearances for investment projects, particularly in the power and coal sectors.

However, JP Morgan strategists warn bulls are now getting edgy due to policy inaction. “The first volley of reforms was expected after the Presidential poll in late July. But this has not been the case. The monsoon session of Parliament has been stalled following the Comptroller and Auditor General of India’s report on coal block sanctions. Coalition allies continue to be reluctant on key reforms,” Bharat Iyer, executive director and head of India equity research at JPMorgan, stated in a strategy report early this week. “Expectations are now for the government to move in the eight-week window after the monsoon session of Parliament concludes (September 7) and before the state elections in Gujarat in November.”

Indian shares have also performed better than other comparable markets on anticipation of monetary easing by the US Federal Reserve and the European Central Bank (ECB), according to CLSA.

“Despite the continued downward earnings momentum in corporate earnings, MSCI India has moved up by five per cent over the last one month on increasing probability of further global monetary easing,” CLSA's India strategists Mahesh Nandurkar and Bhavesh Pravin Shah on Wednesday stated in a report. “While India is the best risk-on market, our analysis of the previous six global liquidity events highlights that market performance has been weak post facto if the index has already moved up on anticipation, which seems to be the case now."

However, strong FII inflows into India this year have also raised concerns among some market participants about their authenticity.

BNP Paribas, in a report early this month, stated almost half the FII flows in India seem to have come from unexplained sources.

“This could lend credence to the oft-repeated conspiracy theory that a lot of FII flows into India are, in reality, Indian money disguised as FII money,” said Manishi Raychaudhuri in a report early this month.

However, BNP Paribas is of the view that FIIs are buying Indian shares because of the country's relative earnings stability. “Over the past one to two quarters Indian earnings estimates have remained stable while those for large Asian peers have declined 7-10 per cent,” Raychaudhuri said in the report.

Raychaudhuri believes the answer to the riddle why FIIs are not selling India when selling the rest of Asia lies in the kind of stocks that FIIs have bought in India recently. “Over the past two to three quarters, FIIs bought predominantly stocks that offer visibility on revenues and earnings. The top 15 stocks, contributing 65 per cent of FII buying, fall largely in this category. In contrast, in 2008, FIIs sold India heavily when they sold the rest of Asia,” he said in the report.

Source: http://www.business-standard.com/india/news/india-shines-in-asiastable-earnings-reform-hopes/484833/

Business In India | "Hawkers eat into restaurants' business in Mapusa market"

By: TNN
Source: http://timesofindia.indiatimes.com
Category: Business In India

MAPUSA: Disappointed with the loss of business due to mobile hawkers selling tea and snacks, the Mapusa uphar graha owners association (MUGOA) has lodged a complaint with the Mapusa municipal council (MMC) and demanded action against these hawkers.

Around 36 restaurant owners submitted the complaint to the chairperson of the MMC, Sudhir Kandolkar, on Wednesday. In it, they stated that persons roaming with a kettle of tea and eatables in the Mapusa municipal area have had an adverse impact on their businesses.

The owners stated that because hawkers supply items like tea, coffee, samosa and bread to the fish, vegetable and fruit vendors in the area, they (the restauranteurs) lose clientele, thus causing heavy losses to them.

"The vendors are then reluctant to leave their place and enter out restaurants, or even order stuff from our establishments," says Santosh Belekar, who owns a restaurant in Mapusa. "Our items thus get wasted every day," he further lamented.

The hawkers aren't new to Mapusa, though. What's new is their increased number. "Earlier, they used to be a few, and went unnoticed; they didn't have much of an adverse effect on our business," said another restaurant owner. "Now, their number has increased sharply and they are eating into out business."

Another hotel owner, Raju Nanodkar, complained that "There is no check on these hawkers, due to which they roam freely all over town".

Members of the association that filed the complaint, have also threatened that if the council fails to take action against the hawkers, then they would do what it takes to control the menace.

"Earlier (a week ago), we had submitted a memorandum to the chief officer of the MMC, but nothing has been done. We should not be held responsible if we take the law into our own hands to evict these vendors for the survival of our business," Santosh Belekar said.

MMC chairperson Sudhir Kandolkar said that he would take up the issue with other council members in a council meeting and take necessary action.

When contacted, Salim Velji, director of food and drugs administration (FDA), said that there is no provision for allowing the selling of tea and foodstuff by mobile hawkers, and hence, there is no regulation.

"It may be a delivery system," Velji further said. "These boys must be attached to some hotels, the source could be the hotels and restaurants, and the boys could be delivery boys. If the sources of these eatables do not have valid licences, then they can be penalized."

He also said that the FDA is willing to take action on unlicensed vendors. "If there's a complant that these eatables are prepared at a place without licence, they should approach us, and we'll take action," he said.

Moving off on a different tangent, the FDA director then added, "If those are minor boys, then they can approach the police."

Source: http://timesofindia.indiatimes.com/city/goa/Hawkers-eat-into-restaurants-business-in-Mapusa-market/articleshow/15966531.cms

Investment In India | "Nereus Capital Raises IFC Investment for India Projects"

By: Natalie Obiko Pearson
Source: http://www.businessweek.com
Category: Investment In India

The World Bank’s International Finance Corp. unit has agreed to invest in a fund managed by Nereus Capital Management LLC that’s targeting clean-energy companies in India.

The $20 million investment is part of $250 million that Nereus plans to raise in the next year, Nereus founder Jonathan Winer said today in a phone interview from New Delhi. It already raised more than $20 million from another investor whom Winer declined to identify, citing a confidentiality agreement.

Nereus seeks to “develop hard assets on the ground,” Winer said. “We’re trying to back companies with scalable business models that address the larger opportunity created by the supply-demand imbalance in the Indian power market.”

India, which suffered the world’s biggest blackout last month, depends on coal to generate more than half its electricity and struggles with a 9 percent power deficit at peak hours. The government seeks to boost alternative energy sources as infrastructure bottlenecks cripple utilities, creating a 30- gigawatt backup power market by businesses switching to diesel generators when lights go out.

Nereus’s first investment may be in a company developing a waste-heat recovery power plant, Winer said. Such plants use heat released as a byproduct of industrial operations, such as flue gases at factories, to heat water to run turbines.

The fund is expected to make seven to 10 investments of $15 million to $35 million each, according to a summary of IFC’s investment proposal on its website. Winer said there’s no cap on the amount it invests in a single company or industry.

Potential investment targets also include developers of wind farms, small hydropower, off-grid solar projects, engineering contractors and suppliers servicing the clean-energy industry, Winer said.

The IFC has invested $3 billion in 190 funds globally, according to Vikram Raju, who heads private equity investments for the organization in South Asia.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Source: http://www.businessweek.com/news/2012-08-29/nereus-capital-raises-ifc-investment-for-india-projects

Investment In India | "STAR India to invest in cricket-based services"

By: Gaurav Laghate
Source: http://www.business-standard.com
Category: Investment In India

STAR India, the exclusive media rights holder for the Board of Control for Cricket in India (BCCI)’s international and domestic cricket matches, is planning to invest Rs 100 crore in the first year to enhance the consumer experience, mainly beyond television.

STAR, the Rupert Murdoch-led News Corp’s Indian subsidiary that has acquired all media rights of BCCI for six years from April this year, is also planning to tighten the noose on the piracy of content that is rampant on mobile and internet. “There is lot of piracy beyond television as far as sports is concerned. The rights are not being honoured and the sad part is that big mobile companies are making money and rights holders are not getting anything. We at STAR India believe this blatant misuse of rights should be punished and we will crackdown heavily on such piracy,” Sanjay Gupta, chief operating officer of STAR India, told Business Standard.
Gupta added mobile companies often use low-quality content from content aggregators and offer them to consumers. “We will invest Rs 100 crore in the first year for shaping up the system, manpower, technology, analytic, etc to offer much better user experience on mobile via value-added services (VAS),” Gupta claimed.

Asked about the return on investment, he said it was not significant right now, but in three to five years, it would be a significant revenue stream. “Today, there may not be a huge revenue leakage, but what is worst is that we are not shaping the future and this piracy will kill any prospect of making mobile VAS as a potential revenue stream,” Gupta said.

At present, an average consumer spends 20 hours per week on television, while just 10 minutes on consuming content on mobile devices and it is here that STAR India is looking enough value to unlock.

STAR India had also published a public notice in the country’s leading dailies on Friday, announcing that it is the exclusive owner of the BCCI rights and that no entity, without its prior permission, should engage in mobile any activity that infringe or interfere with it rights. It had also said STAR India is authorised to take legal action against such entities.

Gupta added: “It’s time that people should recognise and respect that we hold the rights. We are going to educate them, engage them. It is going to take lot of efforts and time, and STAR is fully geared up for it.”

Source: http://www.business-standard.com/india/news/star-india-to-invest-in-cricket-based-services/484649/

Investment In India | "Amazon Expands Kindle Business To India"

By: Dianna Dilworth
Source: http://www.mediabistro.com
Category: Investment In India

After opening up in various European markets last year and announcing a move into Japan earlier this summer, Amazon has expanded its global push by opening its Kindle business in India.

AppNewser has more: “Kindle India launches with more than a million titles priced in Indian Rupees. The India Kindle Store features titles from around the world including various works from Indian authors, including Chetan Bhagat, Ashwin Sanghi, Ravinder Singh and Amish Tripathi.”

Amazon first launched its e-commerce site in India back in February. Like Amazon.com, Junglee.com, the Indian storefront sells everything from books and electronics to shoes and baby toys.


With the launch of the Kindle store in India, Amazon is also opening its Kindle Direct Publishing platform, the company’s self-publishing platform, in India. Indian authors can use the platform to publish their works in Kindle stores around the world, setting prices specific for India, and receiving royalty payments in rupees.

Source: http://www.mediabistro.com/galleycat/amazon-expands-kindle-business-to-india_b56404

Investment In India | "China and India Are Catching Up to the U.S. in College Graduates"

By: SERENA DAI
Source: http://www.theatlanticwire.com
Category: Investment In India

If investment in education is correlated with business competition, then the U.S. better watch out: India and China are on our tails as far college graduates go, according to this chart by research institute Center for American Progress. In an analysis comparing investments in the workforce called "The Competition that Really Matters," Donna Cooper, Adam Hersh, and Ann O'Leary looked at each country's share of the world's college graduates.

The authors used data from the U.S. Census Bureau and a paper by the National Bureau of Economic Research. The yellow bar represents a projection based on demographic data and college enrollment trends.

While the U.S.'s share of world graduates goes down, China and India are seeing larger shares of college grads. The paper suggests that the changes in this graph indicate China and India's growing competitiveness. Per Cooper, Hersh, and O'Leary: "[Economic] research consistently points to education and broader human capital investments as the most important drivers of economic progress over time," they write. "The sheer population sizes of China and India mean that relatively soon they will match the United States in the number of skilled-workers competing in globally-mobile industries."

The authors' ultimate conclusion? If the U.S. wants to compete with China and India, it's going to have to invest more in education.

Source: http://www.theatlanticwire.com/global/2012/08/china-and-india-are-catching-us-college-graduates/56071/

Investment In India | "MLMs now want to ‘invest’ money in India, really?"

By: SUCHETA DALAL & YOGESH SAPKALE
Source: http://www.moneylife.in
Category: Investment In India

The Foreign Investment Promotion Board (FIPB) will meet on 24th August to deliberate on the perils of allowing foreign direct investment (FDI) in multi-level marketing (MLM) companies, says a PTI report. However, experts worry that top multinational MLMs will use the meeting to legitimise their existence, which is currently uncertain under the Prize Chits & Money Circulations Schemes (Banning) Act, 1978.

Following reports of the FIPB meeting on 24th August, EAS Sarma, former expenditure secretary, Government of India, has written to Arvind Mayaram, secretary for economic affairs warning, “I apprehend that the FIPB route will be sought to be misused to obtain cover for these MLM companies which are nothing but a way to swindle the public to raise illegal funds to enrich unethical and anti-social persons.”

“Many of these (MLM) companies are not even registered under the Companies Act. Even those registered evade regulation. Those booked regroup under different names and continue to cheat the people. All these companies and those that promote them should be dealt with an iron hand and be prosecuted effectively,” he said. This follows several letters by him to the prime minister, ministry of corporate affairs, ministry of finance, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and others, on the subject. All of this has been backed by a solid body of investigation and research by Hyderabad-based DIG V C Sajjanar.

Meanwhile, pressure against MLMs and various other ponzi schemes has been mounting. Moneylife has been exposing scores of the shady operators over the past two years. Moneylife Foundation, a not-for-profit entity has also sent a representation to the prime minister, urging for a complete ban on MLM companies or to bring them under the regulatory ambit of either RBI or SEBI.

A set of powerful MLMs, which are part of an exclusive closed club, called the Indian Direct Selling Association or IDSA (on the lines of the Direct Selling Association of the US) has been lobbying hard to make a distinction between their operations and those of others, who they call, fly-by-night operators such as SpeakAsia and Ad Magnet. In fact, the tens of thousand ponzi/double-your-money schemes that exploit poor financial literacy cause the biggest losses to Indians across the economic spectrum today. SpeakAsia, the most notorious of these in recent times, raised over Rs1,300 crore in under a year from 12 lakh people, managed to do so without even registering the parent company in India. Instead, a bunch of entities, which flew below the regulatory radar were registered all over India to act as collection agents that pooled the collections from SpeakAsia’s empanelment fees of Rs11,000 per identity and transferred them overseas. The case is important because various regulators including the RBI and the ministry of corporate affairs claimed not to have the power or jurisdiction to act against the company.

Moneylife has also exposed the links between Speak Asia and AdMatrix, both operating with a similar modus operandi to deprive people of their savings. We pointed out that both these MLM companies were started by the same set of people who are working together since 2003.

MLMs, chain companies or networking companies—also known as chit funds or blade companies, have turned very powerful in several states which are ruled by regional parties and have strong political connections. Their political funding protects them from any action. Also, as Mr Sarma has pointed out, “Many of these promoters have political links and they approach various ministries in the guise of marketing companies and make overtures to protect themselves. They know that they can play one ministry against the other and get away with their loot.”

This is reflected in the fact that the ministry of corporate affairs (MCA) has been warning people against investing in the schemes (‘Multi-level marketing companies con many to benefit few’) while the FIPB wants to discuss FDI in these companies. A company like Amway, which would have been disallowed under the Prize Chits Act, entered India through the FIPB route. It has been embroiled in long drawn litigation on the subject. Interestingly, a MCA study itself concludes that “such (MLM) schemes are inherently money circulation schemes and sale of products is only a camouflage... (and) voilative of the Prize Chits and Money Circulation Schemes (Banning Act), 1978.”

According to the study, the products by multi-level marketing companies are “over-priced” to enable them to pay huge commissions to people sitting at the top of pyramid and earn exorbitant profits for the company.”Such schemes enrich the company and the top of the pyramid participants at the cost of 90% of the participants who are at the bottom two levels,” it said.

The study added that in the pyramid or multi-level marketing schemes ‘product’ “is only a way to disguise the real intention” and such schemes are primarily “a variant of the earlier money circulation schemes” without any products.

The study further said that now the trend was to introduce sale of products to camouflage real intention and to give an air of legitimacy, deceive the regulatory, law enforcement agencies, media and the public into accepting them as legitimate business.

“These pyramid schemes are so cleverly designed that unless a very meticulous investigation is done and the con game is properly understood, it would be difficult to establish the deceptive nature of the schemes,” it said.

The main difference, it added, between direct sales and pyramid sales is that in direct sales the person making the sales gets the maximum commission, while in pyramidal scheme the person at the top of the pyramid gets maximum commission.

“Such a compensation plan rewards enrolling more members down line rather than give incentives to sell directly to the consumers who are not interested in becoming members. The deceptive and fraudulent nature of such scheme is because very soon saturation is reached and more members cannot be enrolled,” it said.

The MCA study said, “The scheme is inherently deceptive because mathematically it is not possible to create an endless chain in enrolment. Such schemes are extremely dangerous from society’s point of view because to gullible public, the scheme looks very attractive. The opportunity of being self-employed and earning money sitting at home by contacting family and friends appeals to most of the people”.

In April, the then corporate affairs minister Veerappa Moily had said he has suggested to the home ministry to set up an SFIO-type special body to probe frauds by the multi-level marketing companies and chit funds in a time-bound manner.

Source: http://www.moneylife.in/article/mlms-now-want-to-invest-money-in-india-really/27968.html

Investment In India | "South Africa keen to have Indian investments"

By: IANS
Source: http://www.newstrackindia.com
Category: Investment In India

New Delhi, August 22 (IANS) South Africa and India are set to reach a target of trade worth $15 billion by 2014 and South Africa is keen about Indian investment in the country, its Deputy Minister for Trade and Industry Elizabeth Thabethe said Wednesday.
"We want to encourage Indian investments in all sectors in South Africa as part of our efforts at job creation. President Jacob Zuma has set a target of five million jobs to be created by 2020," Thabethe told IANS on the sidelines of a seminar here on the occasion of South Africa's Women's Month organised by FICCI Ladies Organisation.
"The latest developments have indicated that India has progressed impressively in the area of informal business development and the Indian institutions that we will be engaging with will present simple solutions for our SMEs, including technology and market development," said Thabethe.
India is one of South Africa's top ten export countries and it is among the top five import countries for South Africa.
Indian companies that are investing in South Africa include Mahindra, Tata, UB Group, a number of pharmaceutical companies like Ranbaxy and CIPLA, IT companies and some investments in the mining sector.
"Several South African companies operate in India, such as the Airports Company South Africa, which is assisting India's Mumbai airport, and Sasol, which is planning to invest," the minister said.
South African investments in India are led by SAB Miller (breweries), SANLAM and Old Mutual (insurance), ALTECH (set-top boxes), Adcock Ingram (pharmaceuticals), Rand Merchant Bank (banking).
The two countries cooperate bilaterally in a number of areas at forums such as the South Africa-India CEOs' Forum, while multi-laterally there is cooperation in the IBSA Business Forum and the BRICS Business Forum, which provide for direct business- to- business interaction and allow for collective consensus building on global policy areas.
From 2002 to 2011, South African exports to India increased by 21 percent, while imports from India went up by 28 percent.
"As for joint ventures between women of both countries, we encourage them in all sectors but certain areas like crafts and jewellery making have been identified as specially favourable for women entrepreneurs," Thabethe said.
"Among new areas of cooperation, agro-processing is of immense potential as both countries have food security as a major priority."
Besides New Delhi, Thabethe will visit Kerala, Chennai and Mumbai.

Source: http://www.newstrackindia.com/newsdetails/2012/08/22/272--South-Africa-keen-to-have-Indian-investments-.html

Investment In India | "Citi venture fund to invest $138 mln in Cox & Kings"

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

HONG KONG (Reuters) - Global buyout fund KKR & Co LP is in early stage discussions to launch a debt fund to invest in India that could raise between $750 million to $1 billion, sources with direct knowledge of the matter told Reuters.
KKR's first dedicated India fund would aim to benefit from the country's four-year high interest rate and tap the opportunity to lend to cash-strapped Indian corporations.
The firm has not yet sent out marketing materials to potential investors, or limited partners (LP), and would not launch a new fund until it has closed its second pan-Asia fund, targeted at over $6 billion, the sources said.
The firm has held a first close of $3 billion on the pan-Asia fund.
The sources declined to be identified as the plans were not public.
KKR received approval for a fund, KKR India Alternative Credit Opportunities Fund 1, on August 14, documents posted on the Indian market regulator's website showed.
"Credit products are already structured and being delivered to Indian corporations through NBFCs (Non-Bank Financial Companies). The AIF (Alternative Investment Funds) licence received further enables KKR to broaden its alternatives strategy in India. Nothing is planned in this regard for the time being," said a KKR spokesman.
(Reporting by Stephen Aldred, Indulal PM and Nishant Khumar; Editing by Denny Thomas and Edmund Klamann)
HONG KONG (Reuters) - Global buyout fund KKR & Co LP is in early stage discussions to launch a debt fund to invest in India that could raise between $750 million to $1 billion, sources with direct knowledge of the matter told Reuters.
KKR's first dedicated India fund would aim to benefit from the country's four-year high interest rate and tap the opportunity to lend to cash-strapped Indian corporations.
The firm has not yet sent out marketing materials to potential investors, or limited partners (LP), and would not launch a new fund until it has closed its second pan-Asia fund, targeted at over $6 billion, the sources said.
The firm has held a first close of $3 billion on the pan-Asia fund.
The sources declined to be identified as the plans were not public.
KKR received approval for a fund, KKR India Alternative Credit Opportunities Fund 1, on August 14, documents posted on the Indian market regulator's website showed.
"Credit products are already structured and being delivered to Indian corporations through NBFCs (Non-Bank Financial Companies). The AIF (Alternative Investment Funds) licence received further enables KKR to broaden its alternatives strategy in India. Nothing is planned in this regard for the time being," said a KKR spokesman.
(Reporting by Stephen Aldred, Indulal PM and Nishant Khumar; Editing by Denny Thomas and Edmund Klamann)
Reuters Market Eye - Rupee trades at 55.46/47 versus its previous close of 55.5650/5750 amid thin volumes in the absence of some large banks and client flows on account of a nation-wide bank strike.
"We are trading as usual today. However, branches are closed and hence there are no client flows. SBI is out, hence, volumes are thin, USD/INR expected to stay rangebound through the day," a dealer with a large state-run bank said.
Traders say they do not expect much action through the day with the pair expected to continue trading in the range of 55.40 to 55.60.
The euro also continued to trade steady while stocks were marginally negative, failing to provide any clear direction to the pair.
Reuters Market Eye - Rupee trades at 55.46/47 versus its previous close of 55.5650/5750 amid thin volumes in the absence of some large banks and client flows on account of a nation-wide bank strike.
"We are trading as usual today. However, branches are closed and hence there are no client flows. SBI is out, hence, volumes are thin, USD/INR expected to stay rangebound through the day," a dealer with a large state-run bank said.
Traders say they do not expect much action through the day with the pair expected to continue trading in the range of 55.40 to 55.60.
The euro also continued to trade steady while stocks were marginally negative, failing to provide any clear direction to the pair.
Reuters Market Eye - Rupee trades at 55.46/47 versus its previous close of 55.5650/5750 amid thin volumes in the absence of some large banks and client flows on account of a nation-wide bank strike.
"We are trading as usual today. However, branches are closed and hence there are no client flows. SBI is out, hence, volumes are thin, USD/INR expected to stay rangebound through the day," a dealer with a large state-run bank said.
Traders say they do not expect much action through the day with the pair expected to continue trading in the range of 55.40 to 55.60. * The euro also continued to trade steady while stocks were marginally negative, failing to provide any clear direction to the pair.
NEW DELHI (Reuters) - Indian tour operator Cox & Kings Ltd said on Wednesday Citigroup's venture capital arm will invest $137.75 million in its U.K. unit, sending its shares up 8.2 percent.
The funds will be used to retire the debt Prometheon Holdings, Cox & King's U.K unit, raised when it bought British specialist travel company Holidaybreak last July.
The company, the parent of UK-based unlisted Cox and Kings, gets around half its overall revenue from its international operations and has been looking at overseas acquisitions to tap the booming outbound market and drive future earnings growth.

Source: http://ibnlive.in.com/generalnewsfeed/news/citi-venture-fund-to-invest-138-mln-in-cox--kings/1047813.html

Investment In India | "Ascott looks to buy properties in Mumbai, Delhi"

By:  Sangeetha G.
Source: http://wrd.mydigitalfc.com
Category: Investment In India

With a focus on high-growth business cities, international serviced residence provider Ascott is looking at the option of acquiring or managing existing properties in cities like Mumbai and Delhi, apart from investing in greenfield projects

The company is currently in the process of developing five properties with more than 1,100 apartment units in Ahmedabad, Bangalore, Chennai and Hyderabad. Along with two properties under operation in Bangalore and Chennai, the company plans to invest $250 million in India by 2015.

“Our strategy for India is to expand in high growth cities where there is strong demand for international-class serviced residence from foreign expatriates and business travellers. Apart from the four cities where our properties are under development, we are looking at extending our footprint to other key business cities across India including Mumbai, New Delhi and Pune through acquisitions and management contract,” said Ajit Koushik, Area General Manager, India, Ascott International Management.

According to Koushik, there is a supply-demand gap for quality accommodation for extended stay in India.

“With the increase in FDI into the country, the number of international arrivals into the country has also increased over the last few years. As per World Travel and Tourism Council estimates, international tourist arrivals estimated to increase more than 80 per cent from over six million in 2011 to over 11 million by 2021. Foreign expatriates and business travellers coming to India on extended stays of more than a month are no longer satisfied with 300 sq ft hotel rooms. They prefer larger spaces that provide a home-like atmosphere complemented by the services and facilities of a hotel,” he said.

According to him, serviced apartments are not too much impacted by fluctuations in occupancy and seasonality in business as in the case of hotels. He finds that development in sectors like IT and ITeS, banking, automobile and manufacturing are the growth drivers for the serviced residence industry.

“In India, more specifically in Bangalore and Chennai, where we currently have properties in operation, the growth drivers are different for each market. In Bangalore, the main contribution to our business comes from the IT/ ITeS and banking industries. Whereas in Chennai, most of our clientele is from the manufacturing and automobile industries,” he said.

With operations in 70 cities of 21 countries, Ascott expects to leverage its brand value among expatriates travelling to India.

“We have a global clientele of multinational companies which operate in the Indian market and we will be attracting the same. We will be leveraging our strong international operational expertise and brand recall to deliver proven quality in products and services”, he added.

Source: http://wrd.mydigitalfc.com/news/ascott-looks-buy-properties-mumbai-delhi-462

Investment In India | "SEBI allows seven alternative investment funds to operate in India"

By: MDT/PTI
Source: http://www.moneylife.in
Category: Investment In India

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has allowed seven alternative investment funds (AIFs) to set shop in the country under a newly formulated route, which allows pooling of funds for investments in areas like real estate, private equity and hedge funds, reports PTI.

The approval has been given to all the seven AIFs by the SEBI in a period of less than one month, as per the information available with the market regulator.

SEBI had notified its guidelines in May for AIFs, which are funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.

As per SEBI data, six AIFs have got registered with the regulator during August 2012, while one was granted registration on 23rd July.

In a board meeting held yesterday, SEBI had decided that the promoters of listed companies can offload 10% of equity to AIFs such as such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds registered with the market regulator to attain minimum 25% public holding.

Under SEBI guidelines, AIFs can operate broadly in three categories and it is mandatory for them to get registered with the regulator. The SEBI rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.

The seven AIFs that have got registered with SEBI include IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund.

The Category I AIFs are those funds that might get certain incentives or concessions from the government, SEBI or other regulators in India and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds.

The Category III AIFs are those trading with a view to make short term returns and include hedge funds, among others.

The Category II AIFs are those funds which can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include PE funds, debt funds or fund of funds, as also all others falling outside the ambit of Category I and Category III.

Source: http://www.moneylife.in/article/sebi-allows-seven-alternative-investment-funds-to-operate-in-india/27851.html

Investment In India | "Have to create confidence to attract investments in India: PM"

By: ZEEBIZ.com
Source: http://zeenews.india.com
Category: Investment In India

New Delhi: India will have to create confidence among foreign investors that there are no barriers for them to invest in the country, Prime Minister Manmohan Singh Wednesday said.

"To attract foreign capital, we will have to create confidence at the international level that there are no barriers to investment in India," Singh said in his Independence Day address.

His statement comes against the backdrop of certain sections of foreign investors expressing concerns over the government moves such as retrospective amendments to the Income-Tax laws and the General Anti-Avoidance Rules (GAAR).

The Prime Minister's Office (PMO) has already set up an expert committee for making suggestions on draft guidelines and framing a roadmap for the implementation of GAAR. The committee would submit its report by September 30.

"We will leave no stone unturned to encourage investment into our country so that our entrepreneurs can make a substantial contribution to our economy," Singh said.

He also said that ambitious targets have been fixed in roads, airports, railways, electricity generation and coal production.

The Government will take steps to increase investment for infrastructure development with the help of the private sector, he added.

Foreign direct investment (FDI) in the country declined by over 65 per cent to USD 4.64 billion during the April-June quarter of the 2012-13 fiscal, as against USD 13.4 billion in same period last year.

The government has also been making efforts to liberalise norms to attract FDI in various sectors, including multi-brand retail. It has already raised the limit of foreign holding in single-brand retail to 100 percent.

The government has received six proposals, including that of Tommy Hilfiger, Promod and Damiani for single-brand retailing in the country.

Source: http://zeenews.india.com/business/news/economy/have-to-create-confidence-to-attract-investments-in-india-pm_58141.html

Investment In India | "NRI Consortium to invest over Rs 2,000 crore in Kerala"

By: ZEEBIZ.com
Source: http://zeenews.india.com
Category: Investment In India

Kochi: A Dubai based consortium of NRIs from various countries around the world propose to invest over Rs 2000 crore in Kerala to set up IT/ITES enabled Business Parks and Life Spaces projects.

The investments would primarily be through Foreign Direct Investment (FDI), Sebastian Joseph, Chairman of the Consortium, told reporters here.

The proposed 'Emerging Kerala' initiative of the state government here next month and its investment friendly policies have given the NRIs confidence to start their project in Kochi, he said.

Pravasi Investment Consortium & Equity Holdings Ltd (PRINCE Holding) promoted Prince GATES (Global Advanced Technology Enabled Society) projects are proposed to be set up in about 100 acres in Kochi, Joseph said.

The consortium is awaiting clearances from the concerned authorities and discussions are on with various government authorities and execution partners in this regard, he said. The project is expected to give 20,000 job opportunities.

Each GATES project will contain a Special Business Zone, a Centre for Excellence in Advanced Technology and Innovation, an International Financial Centre, an Education Zone and Hospiltality zones comprising clubs, spas, Service apartments and NRI facilitation centre, he said.

This is perhaps first of its kind investment by NRIs in the country.

At least 350-500 NRIs are participating in each of the projects as a part of the consortium. After the Kerala project takes off, plans are to replicate the same model in other major South Indian cities like Bangalore and Chennai, Joseph said.

The development is envisaged to be completely 'sustainable' and 'self sufficient'.

The focus is to collectively pool resources of individual consortium members to create an infrastructure that is conducive to and supporting of technology based firm.

It is aimed at facilitating interaction, technology development, economic growth, new venture creation, Shaji Baby John, Chairman Kings Infra Ventures ltd, said.

Source: http://zeenews.india.com/business/realestate/upcoming-projects/nri-consortium-to-invest-over-rs-2-000-crore-in-kerala_58362.html

Investment In India | "Growth will be back on track after revival of investment: Chidambaram"

By: ANI
Source: http://www.newstrackindia.com
Category: Investment In India

New Delhi, Aug.19 (ANI): Economic growth in India will be back on track after the revival of investments in various sectors, claimed Finance Minister P. Chidambaram.
Chidambaram said this while speaking to reporters after meeting chiefs of the nationalized banks in New Delhi.
"The aim is to quicken investment, industries and business houses which have business plans must bring forward their investment plans rather than defer it by six months or a year. Once we get the investment cycle going, once we get the investment engine started I think many of our problems can be resolved," said Chidambaram.
He also reviewed the performance of the public sector banks in light of the economic slowdown and discussed methods that need to be taken to upgrade banking services.
"We had a very substantial agenda, matters including agricultural credit, lending to minorities, education loans, financial inclusion plans and then of course the state of health of the banking sector in terms of mobilization, resources, extension of credit, return on assets, profit after tax and also about greater use of technology to quicken the services of banks and make it more efficient. I have reviewed this after about four years. I am very happy that the health of the banking sector is extremely good," said Chidambaram.
He added that banks have been advised to start cash deposit facilities in automated teller machines (ATMs) and increase doorstep banking services, which would mobilize savings.
"Now banks have been advised to quickly upgrade their ATMs into not only cash-dispersing machines but also cash-accepting machines. Work has already started; all banks have been told that ATMS should not only be cash-dispersing machines but also cash-accepting machines. Banks would now also intensify doorstep banking in bazaars, in markets to collect their daily collection of shops in order to mobilize the savings of the people," Chidambaram concurred Saturday.
He also said the Indian banking system is sound and there had been a minor increase in non-performing assets (NPAs) which was not upsetting.
India's economic growth has lost momentum due to global headwinds, sluggish policymaking and more lately worries about a drought in parts of the country. Fearful of a popular backlash, the government has failed to cut expenditure or liberalise the economy to attract investment.
Economists suggest the government is moving towards a deficit in 2012-13 of around 6 percent of GDP and credit default swap markets already price the country at junk, or non-investment grade.
Global agencies Fitch Ratings and Standard and Poor's Ratings Services this year warned that India may become the first of the BRICS group of large emerging markets to lose its investment grade rating if it did not control the fiscal and current account deficits.
India's current account, the broadest measure of its trade in goods and services with the rest of the world, ballooned to a record deficit of $21.7 billion or 4.5 percent of GDP in the March quarter. (ANI)

Source: http://www.newstrackindia.com/newsdetails/2012/08/19/39-Growth-will-be-back-on-track-after-revival-of-investment-Chidambaram.html

Investment In India | "Chicago Hosts China India EB-5 Investment Gorum August 23-24, 2012"

By: PRWeb
Source: http://www.virtual-strategy.com
Category: Investment In India

Chicago, IL (PRWEB) August 19, 2012

Artisan Business Group will be hosting a two day China and India investment conference in Chicago August 23-24, 2012. The event will focus on exploring inbound EB-5 investment and foreign direct investment from China and India.

“US China India Investment Forum” will be drawing U.S. business executives, attorneys, investment bankers, government officials, and venture capitalists, among others, to be educated on the latest trends in EB-5 immigrant investors program and foreign direct investment from China and Inida. In addition to its educational value, the event will provide a great opportunity for capital seekers to network and connect with others in the industry. The conference aims to help U.S. companies tap into foreign capital sources, with the ultimate goal of stimulating the economy and creating American jobs.

The two day event will feature some of the most highly-renowned and experienced international investment professionals. Scheduled speakers include, Mr. Seann Nelipinath, Founder, Chairman & President, India Chamber of Commerce, Ms. Radhika Reddy, Founding Partner Ariel Ventures, LLC & Ariel Int'l Center, LLC. Mr. Rajan Pillai, COO Nanocrystal Technology, Inc. Mr. Suraj Krishnan Director, AlixPartners. Dr. J. Mark Muno,z Associate Professor of International Business, Millikin University, Mr. Vishal Bhandari, Principal, A.T. Kearney. Mr. Brian Su, CEO, Artisan Business Group, Inc. Mr. Lu Sun, VP of Maslink Group (China), Mr. John Jiang, President, Micon International, Ms. Hong Yu, Project Manager, Wailian Overseas Group (China), Mr. John Li, CEO of EB5Supermarket.com. Legal experts will also be speaking at the two day forum.

The conference will provide valuable insight and networking opportunities to those with previous international investment experience, as well as to first-time capital seekers. This year’s event is being hosted and sponsored by Artisan Business Group, Inc., and will be held at the Embassy Suites Chicago Lakefront, 511 North Columbus Drive. Those attending the event also have the opportunity to meet the prior day with Artisan Business Group’s CEO, Mr. Brian Su, for a 1-hour private consultation.

Source: http://www.virtual-strategy.com/2012/08/19/chicago-hosts-china-india-eb-5-investment-gorum-august-23-24-2012