Lava Targets Revenues Of Over Rs 6,200 Crore In FY15
Domestic handset company Lava targets revenues in the range of Rs 6,200-6,500 crore in the current financial year on the back of smartphone sales that contribute over 60 per cent to its turnover. The company is also in process to set up a joint venture for starting manufacturing of devices in the country. “Our target is to achieve revenues of over Rs 6,200 crore or $ 1 billion in financial year 2014-15, of which smartphones will contribute 75 per cent,” Lava International Chairman and Managing Director Hari Om Rai said . At present, around 60 per cent revenues are coming from smartphones segment, he added. He further said the company has clocked in revenues of Rs 2,909 crore in FY 2013-14. The company is in talks with various partners to set up a joint venture (JV) for manufacturing handsets in India. The JV is likely to be finalised by September and after that it will start manufacturing. “We are very focussed on manufacturing in India. The talks with partners for JV is going on and we are also in touch with various state governments for land,” Rai said. The company will also come out with a series of Windows- based phones by July in the range of Rs 6,500 to 8,500.
SBI To Offload Up To Rs 4,000 Cr Bad Loans To ARCS
India’s largest banker State Bank of India is selling off its non-performing assets (NPA) of around Rs 3,500 -4,000 crore for the financial year 2013-14 to asset reconstruction companies (ARC). “We are selling NPA between Rs 3,500 and Rs 4,000 crore of NPA,” SBI Chairman and Managing Director Arundhati Bhattacharya said recently at IIM Calcutta.
SBI has total bad assets of Rs 67,799 crore. It had reported 5.73 per cent of its assets as bad loans in the October-December quarter. It had said earlier that there were 14 ARCs functioning and many of them had been invited to pick up stressed loans. Normally ARCs pay 5-10 per cent of the total bad loans being bought in cash and the rest could be security receipts (SRs). This helps banks take the equivalent NPA figure out of books and make an yearly provision for recovery or actual cash payment. “We will make yearly provisions and adjust it on mark-to-market basis,” Bhattacharya said.
SAIL Chairman Reviews Isp Modernisation
SAIL Chairman CS Verma visited SAIL’s IISCO Steel Plant and reviewed the progress of ongoing modernisation projects. ISP is being upgraded and modernised with a total cost of over Rs 16000 crore and the plant will produce 2.9 million tonnes of hot metal after completion. The major facilities under upgradation are new 7-metre-tall coke oven battery, sinter machines (2 nos.), a new blast furnace of 4060 m3 volume with top pressure recovery turbine, 3 Nos. of 150t basic oxygen furnace converters, 2 Nos. of 6-strand billet casters and one 4-strand beam blank/bloom caster, universal section mill, wire rod & bar mill with necessary auxiliary and service facilities. The picture shows Chairman, SAIL, CS Verma with senior SAIL officials and employees at SAIL ISP’s wire rod mill.
BHEL’S Profit Falls For FY14
Bharat Heavy Electricals Limited (BHEL), in a statement said, net profit for the financial year 2013-14 (FY 14) halved more than to Rs 3,228 crore on account of low volumes and challenges in the domestic power sector. The power equipment major had posted a net profit of Rs 6,615 crore in FY13, BHEL said. The state-owned major’s turnover declined to Rs 40,366 crore from Rs 50,156 crore in FY13, as per a regulatory filing on its provisional earnings for the year ended March 31, 2014. Order inflows fell to Rs 28,007 crore in the year ended March 2014 from Rs 31,650 crore last year. The company’s total order book stood at Rs 1,01,538 crore.
SUN Pharmaceuticals Buys Ranbaxy Laboratories In $3.2 Bn Deal
Sun Pharmaceutical has acquired the troubled pharma company Ranbaxy Laboratories in a $3.2 billion all-share deal. Under terms of the agreed deal, Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each Ranbaxy share they own. This exchange ratio represents an implied value of Rs 457 for each Ranbaxy share, a premium of 18 per cent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 per cent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as of the close of business on April 4, 2014, a company statement said. The combination of Sun Pharma and Ranbaxy is the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The combined entity has operations in 65 countries, 47 manufacturing facilities across five continents, and a significant platform of specialty and generic products marketed globally, including 629 Abbreviated New Drug Applications (ANDAs). On a pro-forma basis, the combined entity’s revenues are estimated at $ 4.2 billion.
TATA-SIA Applies For Permit To Import Aircraft
The joint venture between Tata and SIA, which is a 51:49 joint venture between Tata Sons and Singapore Airlines, has decided to start the airline with a fleet of 20 aircraft and will soon apply to the civil aviation ministry for permissions to import the jets. “We will apply for permissions to import 20 aircraft as soon as we get our No Objection Certificate (NOC) from the government. All these aircraft will be Airbus A320 and will be imported on lease,” said an executive with the airline. The number of aircraft sought to be imported is an indication that the airline would launch international operations as early as possible. The current rules do not allow domestic airlines with less than five years in operations and with a fleet of less than 20 aircraft to start international operations. The civil aviation ministry has mooted a proposal to abolish this rule, but that has been held in abeyance due to the elections. Tata-SIA had last week got a no-objection certificate (NOC) from the civil aviation ministry to start a full-service airline. The airline company will now have to apply to the Directorate General of Civil Aviation for a flying licence.