The prices of construction steel have come down nearly 37 per cent. The price of bitumen has come down by 22 per cent since mid-November, while diesel and cement prices have come down by 10 per cent. GMR infrastructure CFO A Subba Rao estimates that construction costs have come down by 20 per cent. Construction costs account for 70-75 per cent of the project costs; the other significant variable being interest costs.
"We have a cash balance of close to Rs 1,500 crore. A majority of this balance can be used for acquisitions as our annual working capital requirement is only Rs 25-30 crore. I will not rule out a buyout of companies to expand our domestic business," said Mernosh Kapadia, senior executive director, GSK India. It is speculated that GlaxoSmithKline Plc is in talks to acquire leading Indian drug major Piramal Healthcare, in a deal valued over $1.5 billion.
New drug discovery and contract research have taken a back seat as global drug majors have slowed down their research and development offshoring to India.
Companies are trying to clean up their balance-sheets and make provisions for forex losses as they think the disclosures will not have a major bearing on their valuations, which are already down.
If Taro fails to address the issues raised by the US Food and Drug Administration, it may face ban on many of its products in the US market, made from the facility at Ontorio, Canada. If Taro fails to address the issues raised by the US Food and Drug Administration, it may face ban on many of its products in the US market, made from the facility at Ontorio, Canada. If Taro fails to address the issues raised by the US FDA, it may face ban on many of its products.
Most have pledged their shares as collateral to raise working capital or a term loan, to increase their holding or to fund an acquisition as a multinational had done to buy an Indian company. Companies are rushing to make disclosures on pledging of shares by their promoters after Sebi made it mandatory. Promoters have to disclose details of pledged shares if the same exceeds 25,000 shares in a quarter or 1 per cent of the total shareholding or voting rights of the company.
Surinder Kapur, president of the company's 'vendor council,' said it has about a dozen representatives from Tata Motors and an equal number from the vendors. "We supply for about 4-5 per cent of our revenues to Tata Motors and we do not have payment issues," he said. Lumax, which derives about 15 per cent of its turnover by supplying almost half of the lighting solutions for Tata Motors worth about Rs 60 crore a year, said they had not experienced any payment issues.
Jaybharat Textiles & Real Estate, a textile company that forayed into real estate three years back, today has a market capitalisation higher than Grasim Industries or Tata Motors.
Wockhardt, the Mumbai-based leading pharmaceutical and biotechnology company that is struggling to repay its nearly Rs 900-crore
Germany-based Merck KGaA, the world's oldest multinational pharmaceutical company, is eyeing to acquire a prominent Indian pharmaceutical company and established drug brands.
The merger of Pfizer and Wyeth is expected to create the second-biggest drug maker among multinational companies in India. The world's largest drug maker Pfizer yesterday announced a $68-billion acquisition of US-based Wyeth.
The 7,480 MW project will be the largest gas-fired power project at a single location in the world and will cost about Rs 20,000-25,000 crore (Rs 200-250 billion). Mukesh Ambani-controlled RIL for the supply of gas from the Krishna Godavari basin, where RIL is developing the largest gas reserves in the world. The matter is currently under litigation in the Bombay HC and a decision is expected soon.
"We are looking at an investment of several million dollars or up to a billion in the coming years, depending on how India's government allows commercialisation of the nuclear power sector," said Dennis Hays, vice-president of Thorium Power. The investments and areas of operation can be in various technologies, manpower training, fuel processing, and operation & maintenance of power plants in the nuclear sector, he added.
These will be business and mid-market hotels that will sport brands such as Hilton, Hilton Garden Inn and Homewood Suites by Hilton (a long stay product). India is the second most important market for Hilton in Asia-Pacific after China, and accounts for 17 per cent of the 300-odd new hotels it plans to add in the region by 2017. It also expects India to account for 15-20 per cent of its revenues in the Asia-Pacific region by 2015.
Anil Ambani-promoted Reliance Power is likely to announce the financial closure of its 3,960-Mw Sasan ultra mega power project (UMPP) in a few weeks.
Dr Reddy's has reached an out-of-court settlement to launch the Glaxo-patented Imitrex, a migraine drug that had annual sales of $878 million as of March 31, 2006, in the US. Experts estimate Dr Reddy's may not get more than $8-$15 million sales in 2009 since majority of sales revenue has to be given to GSK, for allowing the launch the authorised generic version.
Retail sales of Ranbaxy Laboratories, Cipla, Nicholas Piramal, Lupin and other drug makers have jumped by over 10 per cent in the domestic market despite the sales of generics or copycat versions of patented drugs falling in leading global markets such as the US and Europe.
Drug maker agrees to cooperate with Scottish investigation.
Dr Reddy's Laboratories, Nicholas Piramal and other Indian drug makers are relying on niche and smaller value, acquisition strategy for growth owing to global slowdown and failure of big-ticket acquisitions in the past.
Glenmark plans to start selling its anti-diarrhoea drug, Crofelemer, by the first-half of 2010 across the globe, except in North America, Europe, Japan and China, the company said. The confidence to sell the drug ahead of its rivals comes as the Crofelemer's original developer, Napo Pharmaceutical Inc, recently entered into a tie-up with a US-based drug maker, Salyx, for selling the drug in the US market, paving the way for Glenmark to sell it in the rest of the world.
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