Wipro Chalks Out Biggest Restructuring Exercise
Wipro is planning a wide-ranging restructuring to help employees shore up expertise in state-of-the art skills, a move that underscores the need to adapt to the fast-changing role of information technology in enterprises. The Bangalore-based company’s head of human resources Saurabh Govil described the effort as the biggest restructuring exercise since Wipro ventured into the information technology business in 1981. “Very few companies would have tried anything of this size and scale in the past,” said Saurabh Govil, a senior vice president. Chief executive TK Kurien said that in 12-18 months, when the revamp is completed, the organisational will look more like an hourglass than a pyramid. The restructuring and training will involve enhancing or acquiring proficiency in emerging technology areas such as data analytics and cloud computing.
Lupin Goes Through The Roof After JV With Yoshindo
The pharma major, Lupin is trading higher by 1.5 per cent at Rs 1,007, extending its 4 per cent gain in the past three trading sessions, after the company said it had entered into a strategic joint venture with Japanese pharmaceutical company Yoshindo Inc. Last week, the stock opened at Rs 990 and touched a new high of Rs 1,014 on the NSE. Lupin announced on April 23, 2014, that it has entered into a strategic joint venture agreement with the Toyama-based Japanese pharmaceutical company, Yoshindo Inc. to create a new entity, YL Biologics (YLB). YLB will be jointly managed by both partners and will be responsible for conducting clinical development of certain biosimilars including regulatory filings and obtaining marketing authorisations in Japan. Lupin will receive milestone-based licensing income in addition to commercial supplies of the drug substance. Both companies will market the product under their own brand names.
Maruti Registers Poor Q4 Show
According to media reports, shares of Maruti Suzuki are down for second straight session after its disappointing quarterly results hurt sentiment. The higher other expense and employee costs impacted profits while dealer compensation on duty cut hampered margins. Additional expense during the launch of Celerio model also impacted profits. The company reported 35.5 per cent drop in net profit to Rs 800 crore from Rs 1240 crore in year-ago period. Net sales for the quarter declined 9 per cent to Rs 12,103 crore against Rs 13,304 crore, in the corresponding quarter last fiscal. Q4 margins fell to 10.3 per cent from 15.02 per cent. Despite the disappointing quarterly results, analysts stay bullish on the counter and are advising investors to buy the stock on declines. The company targets three new launches this year.
GAIL Draws $7.8-Bn Fleet-Hire Strategy To Import LNG
GAIL (India) has outlined a plan to invest an estimated $7.57 billion for hiring a fleet of sophisticated LNG ships to ferry gas from the US to India for 20 years from 2017. The PSU will soon float tenders to award contracts by November. The cost excludes fuel, canal and port call charges, which, again to be borne by GAIL, will be $30 million. The public sector firm has tied up 5.8 million tonnes per annum (mtpa) of LNG imports from the US starting 2017. “It’s been decided to charter ‘new build’ ships to transport gas from the US. Step-in right (to GAIL) in the ownership of LNG ships would only be possible for new build ships. Since fuel and other charges are to the charterer’s account, GAIL is looking at chartering fuel-efficient ships,” said an official. GAIL is considering taking up equity stakes of up to 10 per cent in the ships with a seat at the owners’ table to facilitate the company to have an insight into on-board happenings (the cost of this equity is included in the GAIL’s estimated total budget for the LNG contracts).
Air India To Start Disposal Of Foreign Assets
The national carrier, Air India is considering selling off its properties in foreign destinations such as Hong Kong, Nairobi and Mauritius as part of asset monetisation to garner resources. It has started approaching Indian banks and public sector undertakings for disposal of these properties, including floor space in prime locations, airline officials said. They said the Indian High Commissions at these places have also been approached to help the airline find suitable buyers for the assets. The plan to monetise real estate assets is an important ingredient of Air India’s financial restructuring and turnaround plans, under which the airline aims to raise an estimated Rs 5,000 crore over a period of 10 years, with an annual target of Rs 500 crore from 2013-14. The airline has already chalked out plans to monetise its unutilised or surplus immovable assets over the next few years, the officials said.
SBI Life Insurance Net Profit Up 19%
SBI Life Insurance Co. reported a 19 per cent growth in profit to Rs 740 crore during the financial year ended March 31, driven mainly by operational efficiency. The private insurer had posted a profit of Rs 622 crore during 2012-13, SBI Life said in a release. “Despite tough economic environment, we were able to maintain a very healthy growth on various business parameters. We have recently introduced more customer-friendly products and remain committed to bringing new socio-economic and geographical segments within the insurance umbrella towards fulfilling overall goal of financial inclusion,” SBI Life Insurance Managing Director and CEO Atanu Sen said. Operational efficiency has been the key driver of SBI Life’s profitability, he added. SBI Life’s regular new business premium, which includes individual and group, increased 14.5 per cent to Rs 2,998 crore during the financial year 2013-14 from Rs 2,618 crore in FY 2012-13.