London-listed Vedanta Resources Plc has completed India’s largest-ever offshore bond sale, raising $1.7 billion mostly from American and European investors.
In a statement, Vedanta termed it as a landmark transaction for the company and said it believes this represents one of the largest corporate high-yield bond issuances out of Asia, excluding Japan.
Essar Projects (India) Limited, the unlisted engineering and construction arm of the $27-billion Essar group, has bagged three new orders overseas worth a total of $80 million.
One of the key contracts is from Takreer for a Spent Caustic Treatment Plant of 3.6 cubic meter per hour capacity at Abu Dhabi Refinery, Essar said in a statement.
Takreer is a prominent oil refining company regionally and internationally, contributing strongly to the rapid growth of the UAE economy, the statement added.
Merichem Process Technologies, Houston, is the technology partner for the project and the contract is to be completed in 27 months.
It has also secured a contract from Samsung Engineering, Korea for Civil Works for the Carbon Black & Delayed Coker (CBDC) Project for the Ruwais refinery, which is to be completed in 22 months.
The third contract is from GS Engineering, Korea for construction of twin inter refinery pipelines (IRP), which will be completed in eight months.
According to the company, mobilisation activities for all these contracts are underway. Essar Projects, is a leading engineering, procurement and construction (EPC) company headquartered in Dubai and offers EPC expertise in various sectors including oil and gas, ports and marine, power, mines and has a presence in over 20 countries.
Japan’s Mitsubishi-Hitachi Metals Machinery Inc. has acquired casting machine supplier Concast India Limited (CIL) to expand its business and capture the Indian metal-making machinery market.
The deal will help Mitsubishi get access to the casting technology of both round billets and slabs of CIL, which it currently does not have, as well as better access to the Middle East and African markets where the Indian firm has good presence.
The financial details of the deal have not yet been released.
Mumbai-based CIL was established in 1973 and has a strong market position for billets and rounds and exports to more than 30 countries.
Mitsubishi-Hitachi Metals Machinery was founded in 2000 and is part owned by Mitsubishi Heavy Industries and Hitachi. The company manufactures steel and iron production machinery and its products include hot rolling, cold rolling and processing line products.
The consumption of steel and iron is expected to increase in India with government pushing for infrastructure development on a mega scale.
Art-up your triple bottom line
by Manali Jagtap Nyheim
India’s second-largest airline, Jet Airways, is flying high on its recent deal with Etihad Airways with plans to set up more international hubs.
US-based real estate development and management firm Hines plans to tap the Indian residential segment.
The company is scouting for joint venture partners for its first residential development.
Five years ago, Hines had entered India through a joint venture development commercial project with real estate major DLF in Gurgaon.
Through its Indian arm, Hines India Real Estate, the company also plans to attract an international brand for a four-star hotel on its 21-acre mixed-use development project in Gurgaon.
Alongside DLF, Hines is also developing a 3.5-acre site on Golf Course Road in Gurgaon. In the residential segment, the firm plans to target mid-market and upper mid-market projects.
Hines operates across 17 countries, including Germany, the UK, Spain, China, the UAE, Canada and Brazil, with total assets of about $23.4 billion.
British estate agents Winkworth have launched an expansion programme across the Indian subcontinent with the opening of their first office in Bangalore.
The London-based agency plans to open offices across all major cities in India, with Chennai and Delhi branches planned for later this year.
Winkworth has plans to go against the grain of traditional Indian house purchases by working for only one party in each transaction rather than for both sides, as has locally been the case.
Narayanan Soundararajan, a former Royal Bank of Scotland banker, has taken on the master franchise for India and will look to build close relationships with credible property developers.
“India is a rapidly growing real estate market, particularly in the luxury segment, so there is a great opportunity for an international brand like Winkworth, that combines global expertise and local knowledge, to enter the market,” he said.
The Indian franchised offices will also work with Winkworth's UK network to offer support and advice to prospective clients looking to buy in the UK, and vice versa.
“The Indian property market has gone from strength to strength over the last decade and is now considered to be one of the most vibrant real estate markets in the world,” CEO Dominic Agace said.
Indian conglomerate Essar has plans to sign a financial agreement with the CDB and China's largest oil and gas producer, PetroChina Company, during the ongoing visit of Chinese Premier Li Keqiang to India.
The world’s second-largest brewer, SABMiller, is planning investments to the tune of $80.17 million in its unlisted Indian arm.
The move is aimed at increasing the company’s market share in the region. The funds will be utilised to increase capacity by over 10,000 litres by 2014, increase its brand portfolio and bring world-class technology and best practices into the country.
SABMiller currently has eight brands in India including Foster’s and Haywards. It has invested more than $700 million over the last 12 years in India.
The firm plans to focus on Asian markets, especially India, given a global stagnation driven by saturation, health trends and increased excise duty.
All major players are now drawing aggressive plans to tap into the Indian market, with young urban consumers driving the demand.
G4S Plc, a UK-based global security company, plans to expand business in India and is looking at targeting sectors such as information technology (IT), infrastructure and hospitality.
Its $546.65-million India business operates via four companies, providing security guards, electronic security systems, facility services (cleaning, laundry, room service) and bullion and cash-moving services.
The company is looking at expanding through acquisitions and is likely to announce one in the facilities sector by the end of this year. It also plans to upgrade facilities in the cash business, area offices and its 36 training schools.
However, many of its investments are dependent on Indian government regulations and the constantly evolving foreign direct investment (FDI) laws.
Many foreign security companies are looking at the Indian security market, which is growing at a sustained rate of 18 per cent annually.