Corporate Buzz
Energy & Power

New Delhi

Moser Baer Clean Energy Limited commissions largest solar power capacity:

Moser Baer Clean Energy Limited (MBCEL) commissioned Asia's largest solar farm in Banaskantha district of Gujarat. The 30 MW solar farm has been set up using 2,36,000 Thin Film modules with an approximate investment of Rs 465 crore. The power will be evacuated through 2 separate 66 KV lines to Sub-Stations at Anganwada and Dunawada. This project awarded under phase 1 of Gujarat Solar Power policy 2009 will be the first major project commissioned under the Gujarat Solar Mission.

With 11 MW of existing solar power generation capacity, Gujarat is country's largest solar power producer today. With MBCEL adding 30 MW of renewable generation capacity, Gujarat is strengthening its position in the country. Gujarat chief minister Narendra Modi will unveil this project . MBCEL is commissioning yet another 15 MW solar power project in the state. As solar power is clean, abundantly available and reduces carbon emission, the Company is incessantly working towards commissioning of 300 MWs of solar projects in the next 12 months in India, Germany, Italy and UK.

They shall have 100 MW operational capacity by the end of October, 2011 and plan to install more than 5 GWs by 2020.The farm has been designed to encompass ponds, village roads etc in it and yet generate electricity on such a large scale. Today our country needs energy not only to reduce the dependence on the fossil fuel based power but also to provide access to basic electricity in far fetched rural areas. By using sun as the renewable source of power, they will be able to address both these requirements."

This solar farm will generate about 52 million Kwh which should provide electricity for 50000 homes everyday. Additionally it will save about 50000 tonnes of carbon emission annually making this farm a beacon for other developers to follow. They selected Thin Film solar PV modules as they are best suited climatic conditions in Gujarat and are known to generate more electricity than the assured levels.




Lifesciences & Healthcare

New Delhi

South Africa's Life Healthcare to buy 26% in Max Healthcare:

Life Healthcare, South Africa's second-largest hospital chain, is acquiring a 26% stake in Analjit Singh-led Max Healthcare for Rs 516 crore, making this one of the largest foreign investment deals in the Indian healthcare sector. The proposed transaction values the Max India subsidiary at around Rs 2,000 crore, which is almost two-and-a-half times the valuation at which private equity fund Warburg Pincus exited the healthcare company in June this year. The private equity player had sold a 16.37% stake in the unlisted hospital chain to Max India for Rs 140 crore at 29.40 a share, pegging the valuing of the company at Rs 855 crore.

In the last few years, healthcare chains such as Parkway and funds such as Avenue Capital, Apax Partners and Warburg Pincus have invested in the $65-billion Indian healthcare sector. Rise in disposable incomes, penetration of health insurance, lifestyle changes and increased government expenditure on healthcare are driving growth in the sector. The South African company will invest by subscribing to fresh shares of Max Healthcare, which will use the money to fund its expansion programme.

At present, the north India-focused group operates eight hospitals, and is in the process of opening four more in the current financial year, taking its total capacity to 1,900 beds. The company plans to double its bed capacity in the next three years.Max Healthcare has a total debt of around Rs 900 crore and some of the proceeds will also be used to retire high-cost loans. With this investment, the company has dropped its plans of doing a rights issue.




New Delhi

Bharti Airtel likely to give 4G contracts to four vendors:

India's largest telecoms company by revenue and customers Bharti Airtel is learnt to have identified vendors for rolling out its broadband wireless services in four circles it bagged in a government auction last year. Bharti is likely to adopt a strategy to split its broadband wireless access or BWA circles among different vendors to optimize costs and leverage relationships with existing equipment suppliers. It used a similar strategy while awarding third generation or 3G contracts that were divided between three vendors.

It is learnt that that telco may offer the Kolkata circle to Chinese gear maker ZTE while its competitor Huawei may get the Karntaka circle. The European vendors Ericsson and Nokia Siemens Networks that have had a long- term relationship with the telco are likely to get the Punjab and Maharashtra circles, respectively. The deal size for each contract could be in the range of $75 million to $100 million.

Bharti awarded 3G contracts to Sweden's Ericsson, Finland-headquartered Nokia Siemens Networks and Chinese gear maker Huawei for 13 circles bagged in a government auction last year. These companies provide telecoms equipment and manage the telcos networks in their awarded circles. LTE is a technology platform that allows very high-speed access to data and transfer of huge amounts of data via dongles and compatible mobile phones. Bharti Airtel paid Rs 3,314.36 crore for getting airwaves that supported LTE services in four circles - Maharashtra, Karnataka, Punjab and Kolkata - in a government auction held last year.

The duration of the contracts could be between three to five years, on similar lines as that of Augere's contract to Ericsson. Augere became the first of the five BWA licence holders to announce a vendor. The company signed a three-year contract with telecoms gear maker Ericsson for an undisclosed amount. Ericsson will plan, design, build, operate and maintain the 4G network for Augere including supply, installation and commissioning.



New Delhi

Car cos Mahindra & Mahindra, Toyota Kirloskar, Honda and others rework strategy as demand overtakes output for new launches:

Automobile companies, which have recently launched vehicles, have underestimated demand, fuelling lower production targets and a consequent increase in waiting periods. Demand for Mahindra XUV 500, diesel variants for Etios and Liva and the Honda Jazz have risen more than the production targets. The XUV 500, launched last month, has booking orders of more than 7,000 units leading to a waiting period of 17-18 weeks. The utility vehicle major, which planned to produce 2,000 units a month, will scale up production to 3,000 units.

M&M, which has also launched the XUV in South Africa, plans to defer its plan of taking the vehicle to other global markets till the situation improves in the domestic market. It has deferred new bookings from October 11. This has been necessitated due to overwhelming response across Mumbai, Pune, Delhi, Bengaluru and Chennai. It has received over 8,000 bookings in 10 days. The priority is to expedite deliveries for existing bookings and hence a decision has been taken to not open up new cities immediately.

Toyota Kirloskar sold 6,000 units of Etios and Liva in September. But the company feels that it could have sold 2,000 units a month more but for production constraints. The capacity constraints have led to a waiting period of over two months on Etios and Liva diesel cars. The Japanese auto major is enhancing production from 90,000 units to 1,00,000 units in the plant which makes Innova and Fortuner. In another plant, where Etios, Etios Liva and Corolla Altis are manufactured, production is being ramped up from 1,20,000 units to 2,10,000 units .

Honda Siel produces 600 Jazz a month and has an order backlog of more than 3,000 cars. The shortage of a micro-chip which comes from a factory in the quake-hit North Japan has led to a waiting period of more than 4 -5 months. The Jazz saw sales picking up after a price correction this year.

Consumer Products & Services

New Delhi

PepsiCo Q3 net up 4% to $2 bn; double-digit growth in India:

Driven by strong volume growth in markets like India and China, soft drinks and snacks major PepsiCo  posted 4 per cent increase in net income to USD 2 billion for the quarter ended September 3, 2011, as against the same period last year. During the period, the company, which sells soft drink brands like Pepsi and Mirinda, registered a revenue growth of 13 per cent to USD 17.6 billion against USD 15.5 billion posted in the year ago period.

While the company saw worldwide beverage volume growth of 4 per cent, its snacks volume increased by 8 per cent during the period as against the same period last year. The company said the volume performance was led by growth in emerging markets, where organic volume increased 8 per cent in snacks and 3 per cent in beverages. The company said snacks volume grew double-digits in the Middle East, India, China and Thailand while beverage volume growth was driven by double-digit gains in India and Saudi Arabia.

They had strong revenue growth across their product portfolio and across key geographic markets. They were able to achieve pricing to partially offset commodity cost inflation and at the same time stimulate consumer demand for their products.