IndUS Business Journal

Indian Firm Allygrow Technologies Acquires the Engineering Services Arm of Michigan-Based Ranal

Feb 5, 2016 0

ROCHESTER HILLS, Mich.–Allygrow Technologies, a technology-driven company focused on core engineering design, development and manufacturing engineering services for the automotive, hi-tech, medical devices and heavy industries, announced acquisition of the engineering arm of Michigan-based Ranal, a leading provider of high-end manufacturing engineering services.

This aligns with the company’s aggressive growth strategy to become a pure play Engineering Research and Development Services (ERDS) provider with end-to-end capabilities and significant global footprint.

Prashant Kamat

Prashant Kamat

Ranal will complement Allygrow’s design engineering and product development expertise with its high-end competency in manufacturing engineering services to provide a comprehensive portfolio of solutions to customers. Through its delivery centres in the US (Detroit) and India (Bangalore), Ranal will benefit Allygrow with multi-location delivery setup, access to local talent, and ready customer base in America, Europe and Asia. Ranal brings expertise of working with OEMs and Tier 1s such as General Motors, Caterpillar, KUKA, Valiant, among others.

The deal with Ranal immediately follows the acquisition of Munich, Germany-based AE Automotive Elements GmbH, a high-end product engineering firm by Allygrow.

Prashant Kamat, Founder & CEO, Allygrow Technologies, said: “With the acquisitions, Allygrow has touched a top line of around USD 15 million in less than 6 months of inception, manifesting the fast-track growth we have embarked on. We aim to reach USD 100 million in revenue over the next 4 to 5 years, and gain impetus in areas such as aerospace, medical technology and embedded space.”

“We have identified additional targets (between $ 25 to $ 30 million size) in the chosen verticals and discussions are in advance stages for the same. We have also initiated discussion for funding of the same,” Prashant added.

Rakesh Mahajan, CEO, Ranal, said: “Allygrow’s strengths in product development will complement Ranal’s expertise in manufacturing engineering, which definitely is a growing segment. I am sure our team members will have great prospects ahead.”

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Wipro Awarded IT Infrastructure Contract by RSA

Feb 5, 2016 0

BANGALORU–Leading international insurer, RSA, announced a new seven-year partnership with Wipro Ltd. to deliver its IT infrastructure requirements across the UK, Ireland and Scandinavia.

Shaji Farooq

Shaji Farooq

Wipro will be providing infrastructure as a service for mainframe, mid-range, storage, cloud and end user services in addition to a multilingual service desk for RSA employees in all the regions. This will enable pan-European standardisation, improved end-to-end responsibility and a platform for business-led collaboration. This agreement follows a 10-month sourcing programme, which included 20 bidders, and reflects RSA’s aim to drive benefits through the consolidation of services across its regional businesses.

Darren Price, Group CIO, RSA, said, “We are delighted to partner with Wipro to provide our IT infrastructure needs across UK, Ireland and Scandinavia. Throughout the selection process, Wipro was a front runner because of its technical excellence and customer centricity. This partnership is a major step forward in our Group technology strategy enabling us to provide a market-leading, agile, affordable and secure infrastructure platform which supports profitable growth and enables our digital future.”

Shaji Farooq, President & Chief Executive, BFSI, Wipro, said, “We are excited to enter into this new partnership and will leverage our global expertise to help RSA maximize value from their infrastructure. We see this as a key enabler for RSA to achieve the desired business outcomes from their IT investments.”

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HD Medical Secures Strategic Investment from Maxim Ventures

Feb 5, 2016 0

SUNNYVALE, Calif.– Sunnyvale-based HD Medical Inc. and Maxim Integrated Products, Inc. of San Jose announced that Maxim has made an $800,000 strategic investment in HD Medical, in the form of a convertible promissory note intended to convert into HD Medical’s next preferred equity round of financing.

Shailendra Mahajan

Shailendra Mahajan

The majority of Maxim’s investment will be dedicated to HD Medical’s new product development of its visual stethoscope technology utilizing a low power Maxim chipset for the advancement of digital health.

“With Maxim’s impressive investor confidence, HD Medical is well poised for future growth and investment,” said Arvind Thiagarajan, Founder & CEO of HD Medical, Inc. “This agreement will accelerate as well as enhance our new product development and position us to ramp our revenues.”

Thiagarajan is responsible for the securing several patents upon which HD Medical’s current and future products are based. Mr. Thiagarajan was given a special award from Member of Parliament for Science and Technology from the Government of India for his contributions to research and science and his work as part of HD Medical won the Socially Relevant Product (SRP) award in ITT Madras, according to the company’s website.

HD Medical develops the ViScope visual stethoscope product family.

“We are excited by the growth and vision we’ve seen from HD Medical’s team,” said Shailendra Mahajan, Managing Director of Maxim Ventures.

“We believe that the product roadmap directly corresponds with the healthcare professional’s needs and also opens up opportunities in tele-medicine and home healthcare markets. Our goal is to ensure both our companies significantly contribute to the advancement of digital health,” said Chris Neil, SVP of Maxim and Head of Maxim Ventures.

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50 percent Indians will be digitally literate in 3 years: Prasad

Feb 4, 2016 0

NEW DELHI– In the next three years, the government aims to take digital literacy to at least 50 percent from the current level of 15 percent, Communications and IT Minister Ravi Shankar Prasad said here on Thursday.

Ravi Shankar Prasad

Ravi Shankar Prasad

At an event to award the winners of the Digital India Week’s online quiz competition on cyber safety and cyber awareness, Prasad said 100 percent digital literacy was needed to make India a truly digitalised society.

He said the world was keenly watching the developments in India and it was the responsibility of the youth to come up to expectations.

He said more than 4,000 innovators have come to India to explore possibilities in the fields of IT and electronic manufacturing.

Prasad said the knowledge economy will prove to be the driver of change, and initiatives of the government in this direction would place the country in a certain advantageous position.

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Foreign Investment in India up while dipping globally

Feb 4, 2016 0

BENGALURU– India was the only country with rising Foreign Direct Investment (FDI) while it was falling the world over, said Commerce and Industry Minister Nirmala Sitharaman on Thursday.

“India is the only country witnessing a 38 percent FDI rise, while globally it dipped to 16 percent,” said Sitharaman at the valedictory session of the Invest Karnataka 2016 Global Investors Meet (GIM).

SitharamanPraising Karnataka, she said the state contributes six percent of the nation’s GDP and is growing at the rate of seven percent. “Karnataka is the third largest recipient of FDI and it will be higher after the GIM,” she said.

Listing the efforts of Indian government to promote and nurture the IT industry, she said Indian government always raises the issue of free movement of people at all bilateral and multilateral engagements.

“We place great emphasis on the free movement of people at all bilateral and multilateral meetings… so that our IT employees can freely move between countries on their professional assignments,” said Sitharaman.

The commerce minister disapproved the recent US visa fee hike and said she took it up with the US government.

“Why such unreasonable visa fees should be imposed on the Indian IT companies? We are not against paying visa fees but against unreasonable visa fees.”

US President Barack Obama on December 19 signed into law a $1.8-trillion spending package, which includes a hefty $4,000 fee for certain categories of H-1B visa and $4,500 for L-1 visa.

Sitharaman lauded Tumakuru to emerge as an investment and manufacturing hub.

“Tumakuru was chosen from among 12 places by Japanese prime minister when they taking a call on where to direct Japanese investment in India,” she said.

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Urban infra sector offers Rs.73 lakh crore investment opportunity: Naidu

Feb 4, 2016 0

Urban InfraNEW DELHI–Urban Development Minister M. Venkaiah Naidu on Thursday said that urban infrastructure sector offers Rs.73 lakh crore investment opportunity for private sector and public-private partnership (PPP) investments over the next 15 years.

“Given the resource limitations of both central and state governments, private sector investments and PPPs are the chief instruments of resource mobilisation to build the much needed urban infrastructure in the country,” Naidu said at an investment summit here.

Naidu said that over and above the support committed by the central and state governments, ensuring basic urban infrastructure requires Rs.56 lakh crore, building 2 crore houses for urban poor needs another Rs.11 lakh crore and Rs. 6 lakh crore for building 100 smart cities.

Expressing hope that private sector and PPP investments can be mobilized to address the infrastructure challenge, he said that 10 of the 20 smart cities announced last week have laid down clear road maps for mobilising PPP investments of about Rs.9,000 crore.

Bringing out the gaps in urban infrastructure, the minister noted that 50 percent of urban households still do not have water connections.

“These gaps hit the urban poor the most and developing urban infrastructure accordingly leads to inclusive urban growth besides enhancing productivity and quality of life,” he said.

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Karnataka mops up 121 agreements, Rs.1.33 lakh crore at investors’ meet

Feb 4, 2016 0

BENGALURU– In contrast to its high expectations, Karnataka has managed to get only Rs.1.33 lakh crore of investments at the fourth edition of its global investors meet (GIM), a state minister said on Thursday.

“We have signed 121 agreements and expression of interest to the tune of Rs.1.33 lakh crore at the GIM,” Industries Minister R.V. Deshpande said at the valedictory function on the second day of the three-day mega event here.

The state government, however, secured 56 percent (Rs.1.75 lakh crore) of the total investment (Rs.3.08 lakh crore) received during 10 months of 2015-16 since April and approved by its high power committee and single window agencies.

“The total investments (Rs.3.08 lakh crore) we garnered will generate 6.7 lakh jobs across the state,” Deshpande said.

Admitting that mobilising investments was a continuous process, he told the delegates that the state’s focus was on implementing projects since the previous Congress government had launched the GIM in 2000.

“Of the Rs.27,000 crore investments received then (2000), proposals worth Rs.18,000 crore were executed with 66 percent implementation rate,” said Deshpande, who held the same portfolio in the then Congress government (1999-2004).

The investments are in the state’s focus sectors – manufacturing, pharma, bio-technology, IT, agri-business, urban infrastructure, infrastructure and tourism.

“Investments will be made across the state, including Bellari, Bengaluru Rural, Dakshina Kannada, Kolar, Ramanagaram Shivamogga and Tumakuru,” Deshpande told the delegates, including central and state ministers.

“We have appointed an official to follow up all projects above Rs.200 crore. We also commit to have all projects approved by the high power committee and single window committee before May 15,” he added.

Giving break-up, the state industries department said of the 121 agreements entered into with investors and valued at Rs.133,177 crore would generate 193,905 jobs.

“Of the total (6.7 lakh) jobs, 1,080 projects approved since April 1, 2015, with a combined investments of Rs.175,633 crore will create 477,026 jobs,” the department said in a statement.

Of the 121 projects received at the GIM, 25 are in food and agri-business sector, followed by 16 in energy, 12 in IT, seven in real estate, five each in oil & gas, and urban infrastructure, three each in cement, industrial infrastructure, manufacturing, pharma, steel, telecom, textiles & garments and tourism, two each in aerospace, biotech, electronics, healthcare and machinery and one each in chemicals, education, engineering, infrastructure, retail, and warehousing and logistics.

Sectors like automobile, services, sports, sugar and waste management drew blank.

Of the big ticket investments, Adani Green Energy Ltd has committed to invest Rs.18,500 crore, followed by JSW Steel Ltd Rs.12,396 crore, Geitso Green Energy Ltd Rs.10,000 crore, Essel Infra Projects Ltd Rs.7,200 crore and Shriram Properties Ltd Rs.5,920 crore.

“The energy sector got the highest investment of Rs.1 lakh crore, followed by steel sector with Rs.38,000 crore and chemicals Rs.24,000 crore,” the statement added.

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Hong Kong keen to play major role in Indian infrastructure funding

Feb 4, 2016 0

NEW DELHI–Hong Kong on Thursday said it is keen to play a major role in helping fund the development of India’s infrastructure.

“Hong Kong can help finance India’s infrastructure,” Hong Kong Special Administrative Region’s chief executive C.Y. Leung said at Confederation of Indian Industry (CII) event here.

Leung said Hong Kong’s position as a global financial services hub puts it in a unique position to help finance India’s infrastructure requirements. He told the gathering that global players in the city in sectors like banking, finance, logistics and infrastructure “will be happy to share the experience and expertise to help you find opportunities in Hong Kong and the region”.

“India is a world leader in IT and I know about their ambitious expansion plans for the sector, through the ‘Make in India’ programme.

“India is a country that has captured the attention and the imagination of the business world,” Leung said, adding that bilateral trade between India and Hong Kong was growing at a healthy pace of 12 percent in 2014. The bilateral trade in 2014-15 stood at $19.17 billion.

The chief executive also said that Hong Kong has forwarded a draft MoU on cultural cooperation to the Indian government and is looking forward to its signing as soon as possible.

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Sri Lankan-born Alere CEO Namal Nawana to receive $11.1 million in one-time payout after acquisition by Abbott

Feb 4, 2016 0

WALTHAM, MA– Sri Lankan-born Alere CEO Namal Nawana would receive about $11.1 million in one-time payouts after the Alere’s acquisition id completed by Abbott Laboratories, according to media reports. Nawana took over as CEO when Alere founder and former CEO Ron Zwanzger resigned in 2014.

Namal Nawana

Namal Nawana

Quoting financial filings, Boston Business Journal reported that Nawana would receive about $11.1 million in one-time payouts, which includes a continuation of his salary for 18 months, totaling $1.3 million; a $201,000 cash award; the acceleration of vesting of what the company then estimated to be $7.9 million in restricted stock and options; and another $1.65 million in gross-up payments to help cover his tax hit form the change-in-control payout.

Nawana also holds 81,000 shares of company stock worth around $4.5 million, according to Bloomberg quoted by Boston Business Journal.

Nawana has been with the company since 2012, originally as chief operating officer. His assumption of the CEO role came after a months-long battle between the company’s former management and one of its investors, Coppersmith Capital, which had been advocating for the company to sell off less profitable parts of the business and align itself for a sale, Boston Business Journal said.

Four other officers — CFO David Teitel, and Daniella Cramp, Sanjay Malkani and Avi Pelossof, the heads of Alere’s cardiometabolic, toxicology and infectious disease units — also stand to receive change-in-control payments and benefits valued between $2.3 million and $3.6 million, according to Boston Business Journal.

Abbott and Alere this week announced a definitive agreement for Abbott to acquire Alere, for $5.8 billion. Under the terms of the agreement, Abbott will pay $56 per common share at a total expected equity value of $5.8 billion. Once the transaction is completed, Abbott will become the leading diagnostics provider of point of care testing. Abbott’s total diagnostics sales will exceed $7 billion after the close.

Nawana was born in Sri Lanka and raised in Australia. He holds an Honors degree in Mechanical Engineering and a Masters of Medical Science degree from the University of Adelaide in Australia and an MBA from the Henley Business School in the United Kingdom.

Before joining Alere, Nawana held various global leadership roles during his 15-year tenure at Johnson & Johnson. He most recently served as Worldwide President of DePuy Synthes Spine, a Johnson & Johnson company. Prior to that role, Nawana held general management positions spanning the globe, including Area Vice President for Johnson & Johnson Medical in Australia and New Zealand and Chairman of the DePuy Asia Pacific Franchise Council.

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Indian Business Briefs: Hollywood Revenue in India Jumps 92 Percent

Feb 4, 2016 0

Modi-BriefsPM Modi: My Goal is ‘Reform to Transform’
Prime Minister Modi spelled out his elaborate vision for India at The Economic Times Global Business Summit held in New Delhi. Listing the many successes of his Government, he said he will continue to strive and give more opportunities to all Indians. His motto, he said, is to transform the life of every Indian through reforms.

Infosys, TCS Invest in Obama’s ‘Computer Science for All’ Plan
India’s top software companies, Infosys and Tata Consultancy Services, have joined Google and Salesforce to support President Obama’s just announced $4 billion “Computer Science for All” initiative that aims to dramatically increase the number of children with access to computer science training in the U.S. and build a more technologically advanced nation.

Apple CEO Tim: Indian Smartphone Market is Great
Tim Cook is betting on India for the long term. Apple is hoping that the country’s younger population thirst for top-of-the-line consumer products and economic growth prospects will help pick up the slack as other markets falter. In its first-quarter earnings call, CEO Cook said Apple will continue to invest in India despite the global slowdown and currency fluctuations.

India Becomes World’s Largest Exporter of Rice
In data released by the Thai Rice Exporters Association, India has beaten Thailand to become the largest exporter of rice in the world. According to the reports, India exported 10.2 million tons of rice in 2015 as compared to Thailand’s 9.8 million tons.

Hollywood Revenue in India Jumps 92%
Total Indian revenue for Hollywood films, according to trade magazine Box Office India, rose by more than 92% in 2015. Nearly one-quarter of the revenue for the year came from one movie-Vin Diesel’s action thriller “Fast and Furious 7,” which grossed $15 million in India.

Ford Mustang To Debut in India in 2016
Ford plans to launch its iconic Mustang sports car in India in the second quarter of this year. The company currently sells models such as EcoSport and Endeavour in the country. “First time in 50 years we have right-handed Mustang,” said Ford India Managing Director and President Nigel Harris.

smart citiesFirst 20 Smart Cities Revealed
The Government announced the first 20 Smart Cities, which include five capital cities, to be developed as Smart Cities. Bhubaneswar in Odisha topped the city challenge competition. The Government has also offered a fast-track window for the next rejected 23 cities based on their ranks to upgrade their proposals and submit them by April 15 for re-evaluation.

Govt. OKs Setting Up Over 5000MW of Grid-Connected Solar Projects
The Cabinet has given its approval for setting up more than 5,000 MW of grid-connected solar PV power projects on a build, own and operate basis. The total investment is about $4.4 billion. This would generate about 30,000 new jobs and reduce 8.5 million tons of CO2 emissions every year.

Govt. Reduces Documentation for Import-Export Code
To facilitate ease of doing business and lessen paperwork, the Commerce Ministry has decided to reduce the number of mandatory documents for taking import-export code to two. Earlier, several documents were required to get the code number.

CBDT: 100 Transfer Pricing Disputes with U.S. Resolved
The Central Board of Direct Taxes (CBDT) has said it has resolved as many as 100 transfer pricing disputes with the U.S., which will lead to an environment of “tax certainty and encourage MNCs” to do business in India. The resolution of such issues, the CBDT said further, follows the framework agreement signed with U.S. revenue authorities in January last year.

Competition Commission OKs Marriott-Starwood Deal
The Competition Commission of India has given its nod for acquisition of Starwood Hotels and Resorts by Marriott International, setting the stage for the Marriott and Starwood combine to create a hospitality behemoth in India. The merger would not only create the world’s largest hotel chain but also the biggest hotel chain in India by rooms.

Central Bank Mandates Online Forms For FDI Filing
The Reserve Bank of India (RBI) has asked banks to file forms related to foreign direct investment only online on the e-Biz portal starting February 8. With a view to “promoting ease of reporting” of such transactions, RBI, under the e-Biz project of the government, has enabled online filing of three returns — ARF, FCGPR and FC-TRS.

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