Japanese firm CAC Corporation is planning to buy a stake in Chennai-based Information technology (IT) service firm Accel Frontline.
Both the companies have signed a definitive agreement under which CAC will become a strategic partner in Accel Frontline. CAC will acquire 51 per cent stake in the Indian company through purchase of equity shares from the promoters, subscription of new equity shares of the company and through open offer.
CAC is likely to bring in investments of about $21.24 million.
The joint venture will give CAC an immediate platform in the India IT services market, while Accel Frontline will be able to access CAC's relationship in Japan to provide IT services with India as a service hub.
CAC, which has 47 years of experience, specialises in providing services to the banking, manufacturing sectors.
Accel Frontline, which operates in over 100 locations in India and subsidiaries in Japan, offers Engineering and R&D services, Outsourced Product Development, IT Infrastructure Management, Managed Services and Enterprise Applications for the Banking, Telecom and Manufacturing sectors.
Indian drug firm Venus Remedies has signed a pact with South African pharmaceutical firm Austell Laboratories to exclusively out-license its flagship antibiotic product, Elores, in South Africa.
The company has signed a memorandum of understanding (MoU) with the South African firm and expects to launch the drug in South Africa by mid-2015. Venus Remedies is projected to generate cumulative revenue of $20 million within five years of the launch of Elores in South Africa.
Elores is a novel antibiotic adjuvant entity that effectively counters serious hospital-acquired infections caused by multidrug-resistant extended-spectrum beta-lactamase (ESBL) and metallo-beta-lactamase (MBL)-producing gram negative bacteria.
Venus has already filed the common technical document for Elores in Europe and is planning to take this product to other international markets.
Globally, the systemic antibacterial market, which is growing at a compounded annual growth rate of 7.2 per cent, is set to reach $44 billion by 2016.
DongFang, one of the largest manufacturers of power generators and contractors of power station projects in China, is in talks to acquire South Indian power equipment manufacturer Cethar.
The acquisition of the Trichy-based firm will help DongFang establish its presence in the country and also control its costs and comply with the localisation norms in India.
Cethar manufactures both sub-critical and super-critical boilers, used in power plants. It also designs and constructs thermal power plants up to a capacity of 800 megawatts.
Founded in 1984, DongFang takes the lead in China particularly in contracting international power stations and a wide variety of large engineering projects, and exports complete plants and equipment to over 30 countries, involving projects in diverse fields such as power generation, electric and mechanical works, power distribution etc.
The government has made it mandatory for foreign companies to have service centres in India and hence such companies prefer firms with a domestic presence.
The US and India compromised on food subsidies to pave the way for the first major multilateral agreement negotiated by the World Trade Organisation’s 159-member nations.
The deal unveiled at the weekend in Bali, Indonesia, is a historic development in the organisation’s 18-year history. The pact is aimed at easing borders for trade and commerce and safeguard food security programmes in developing nations.
WTO director-general Roberto Azevedo summed it up: “We have put the world back into the World Trade Organisation.”
Champions of the deal claim it will add $1 trillion to the world economy and may help extend talks on the Doha trade negotiations, which have dragged on for 12 years.
India had wanted an agreement that would satisfy its demands to exempt food security plans from being counted under subsidy spending caps, while the US was concerned that surplus from India’s food programme may get dumped onto world markets.
The agreement lets India and other developing nations continue to subsidise their crops to bolster food security without having to worry about legal challenges, so long as the practice does not distort trade.
State-owned Coal India Limited (CIL) is planning to acquire mines in Indonesia as part of its overseas expansion strategy.
It is actively looking at as many as five proposals, which are all based in Indonesia.
CIL has proposed a capital expenditure for the current fiscal year at around $817 million, along with additional ad-hoc provision of $653.7 million to acquire coal assets abroad and develop coal blocks in Mozambique.
The company is facing a severe shortage of coal and has been exploring various options. In September, it had invited an expression of interest from global companies to offer overseas assets.
The demand-supply gap for coal was 135 million tonne (MT) last fiscal and may widen 185.5 million tonnes in 2016-17. The coal ministry believes that the acquisition of coal mines overseas should be done in an aggressive manner to meet the country's energy requirements. In order to tide over the fossil fuel shortages, the government is also proposing to import coal.
If the stock markets are anything go by, the Indian state elections seem to have spread some cheer among India’s business community.
The Opposition BJP, which routed the ruling Congress party, is being seen as a more investor-friendly party and what the country needs to recover for inflation and sluggish growth rates. The federal polls were always touted as reflective of voter sentiments in the lead up to the General Election in 2014 and it would look like the vote will be in favour of change.
The Bombay Stock Exchange Sensex rose to a record high on Monday and the rupee hit a four-month peak as analysts predict an Opposition sweep.
Indian industry chamber Assocham said: “Certainly, the voter may not understand the complexities of economics, but he/she reacts rather strongly if his/her purchasing power is curtailed by inflation.
“The election results in the assembly elections have thrown a clear message: It is the quality of governance which matters at the end of the day.”