This indirect outsourcing will make Airbus' parent company EADS' total business outsourced to India grow 10 times by 2020, from the current euro 100 million. In comparison, the total outsourcing to countries outside Europe will only increase by more than three times in that period, albeit from a far larger base of euro 8 billion. Industry experts said this indirect outsourcing would be a clear way to rationalise costs.
The bid-pack for potential investors is ready and the government-appointed board has already sent it to the Company Law Board and Securities Exchange Board of India, according to sources close to the development.
Monnet, which has already acquired 27 per cent in Orissa Sponge at Rs 283 per share, made an open offer for another 20 per cent at Rs 310 per share. Monnet group executive vice-chairman and managing director Sandeep Jajodia said, "We have formed a joint venture with Orissa Sponge existing promoter P K Mohanty. Under the deal, the Monnet group will have three directors, while Mohanty, who will have around 18 per cent stake in the company, will have two nominees on the board."
Delhi-based Monnet Ispat and Power has bought 27 per cent in the steel company and may make open offer at Rs 320 per share. Backed by P K Mohanty, executive vice-chairman and managing director, Orissa Sponge, and the promoter of the company, Monnet Ispat has now become the frontrunner for acquiring the company by buying a total of 54 million shares.
Industry sources and certain airline executives revealed this was done after the LCCs hammered out their differences with full-service carriers on certain contentious issues related to pricing. Industry source said the fares had been lowered as a protest against the full-service carriers' sale of coupons worth Rs 300 crore (Rs 3 billion) and valid for six months to travel agents across the country at prices that were 20-30 per cent less than those available on their websites.
Full-service carriers like Kingfisher, Jet Airways and Air India sold travel coupons worth around Rs 300 crore to travel agents a few days before the airlines almost doubled their fares in one go. Experts say the full-service carriers have ensured 5-6 per cent of their average sales through these coupons. This, they add, will partly make up for the slowdown in demand expected due to the fare hike.
This is under the accounting norms of the Securities and Exchange Commission of the United States. The company has said it would use its share premium account of Rs 8,600 crore (Rs 86 billion) for this write-off.
Infrastructure Leasing and Finance Company is poised to acquire management control of the troubled infrastructure company Maytas Infrastructure owned by family members of Ramalinga Raju, former chairman and managing director of Satyam Computers, who confessed to financial fraud on January 7. The leading non-banking finance company is emerging as a government preference given its prominent role in infrastructure finance in the country.
The gap between the average fares of a full-service airline and a low-cost carrier for metro routes narrowed by a third in January, thanks to leading players cutting their fares quite dramatically to grab the market share.
Regulator wants price to be in line with Tata Tele valuation.
A month after they cut fares 25-30 per cent, the country's leading airlines have realised that the surge in passenger traffic they had expected has not happened.
Raghu Menon, CMD of National Aviation Company of India (Nacil), had said last year that more than 70 per cent of the merger process would be completed by the end of FY09.
The principal promoters of Balaji Telefilms, actor Jeetendra, his wife Shobha, daughter Ekta and son Tushar, have decided not to buy Star India's 26 per cent stake in the television software company because of the sharp erosion in its share price.
The move will help mop up not more than Rs 10 billion, which is only a fifth of the capital requirement of the industry, led by Jet Airways and Kingfisher Airlines, say experts. The expected investment has been calculated on the basis of a 100 per cent premium on the current valuations of Jet Airways and Kingfisher -- two of the country's largest carriers by market share -- which require over Rs 50 billion.
The civil aviation ministry and the directorate general of civil aviation plan to award the low-cost carriers some key morning and evening peak-time slots (a fixed time for departure or arrival of a particular flight) lying unused with the full-service carriers at metro airports like Delhi and Mumbai. DGCA officials and airline officials confirm that airlines like Jet and Kingfisher are not using around 10 per cent of their slots during the peak periods.
While portals such as makemytrip, cleartrip and ezeego have seen a rise of 30 per cent in advance booking in the first week of January, others such as yatra and travelocity, with a 10-15 per cent surge, are also expecting more bookings in the coming weeks. The cleverly-introduced advanced booking fares have induced passengers to book tickets until as late as November.
HCL, MindTree in the fray. The company is reportedly in talks with Delhi-based HCL Technologies and Bangalore-based MindTree. HCL, with whom discussions are on for a cash-less merger, seems to be the front-runner, investment banking sources said.
As the demand for a grand stimulus gathers steam, the government is targeting an investment of Rs 100,000 crore
With no sign of the global liquidity crunch abating, the government is planning to ease the lending norms for banks and financial institutions so that they can provide funds for the ambitious ultra mega power projects.
The lukewarm response to the proposed real estate development around the Delhi airport has put its Rs 8,940-crore modernisation in a financial bind.
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