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Vowing zero tolerance for crime, up invites cos for investment

New Delhi: The Uttar Pradesh government invited businesses to invest in the state assuring them of ‘zero tolerance’ with regard to law and order situation, besides better business climate and substantial policy framework. For boosting investments and development opportunities in the state, Yogi Adityanath government had in July approved Industrial Investment and Employment Policy, 2017.

The new policy is aimed at facilitating ease of doing business besides employment generation, as also establishing a new ‘Make in UP’ department to derive the maximum benefits of the Make in India scheme. “Earlier, UP was the last destination for industrialists as far as law and order was concerned. Now the government has zero tolerance for crime and for people who are protecting criminals,” UP Minister of Industrial Development Satish Mahana told reporters and investors.

He was speaking at a CII event titled Uttar Pradesh investor summit, Delhi roadshow.

He further said the recently introduced industrial investment policy is the reflection and the roadmap for the historic approach that the administration has taken up not only for industrial development but also for overall standard of living, creation of jobs and exploring new avenues with substantial policy framework.

The UP government, led by Chief Minister Yogi Adityanath recently announced its aim to attract over Rs 5 lakh crore investment and create 20 lakh jobs in Uttar Pradesh by 2022.

Stating that the state has the largest railway network of about 9,000 km besides major airport connectivity, Alok Sinha, Infrastructure and Industrial Development Principle Secretary, said there is great opportunity for investors to access various markets.

Germany exhorts Indian firms for more investments

NEW DELHI: Germany has laid out the “red carpet” for Indian firms, underlining their potential for investments in the European nation, German Ambassador Martin Ney said.

“German companies alone have invested a total of 9.7 billion Euros in India since 2000. If we compare this number to Indian investments in Germany one conclusion becomes quite clear. There is still some potential the other way round,” Ney said while addressing an event on Thursday.

“That is why the new federal states of the Eastern region of Germany and the Embassy have laid out the red carpet,” he said.

Germany’s economic development agency held roadshows in India to attract the country’s businesses to invest in ICT clusters in the Eastern part of the European nation.

The Germany Trade & Invest has held roadshows in Mumbai, Bengaluru and Delhi, eyeing investments from Indian companies, especially those belonging to the information and communications technology (ICT) sector.

“We have for example German companies well established in manufacturing but they have huge difficulty to adapt to the digital agenda.. There is a good fit between established manufacturers in Germany, many of them SMEs, and ICT companies in India,” Germany Trade and Invest CEO Jurgen Friednich told PTI. He was also speaking at the event.

Friednich said around 150 companies participated in the roadshows on opportunities in East Germany ICT clusters across Mumbai, Bengaluru and Delhi.

Gold losses mount, silver dips below rs 38,000 per kg

New Delhi: Gold prices suffered more losses by falling Rs 200 to trade at Rs 29,750 per 10 grams, mirroring a weak trend overseas amid slack demand from jewellers at the domestic market.

Silver ready dipped below the Rs 38,000-mark by plunging Rs 425 to Rs 37,700 per kg, due to reduced offtake by industrial units and coin makers.

Traders attributed the fall in the metal’s prices to a weak trend overseas where gold is heading for the biggest weekly drop since May as investors anticipate higher US interest rates, and progress on tax reform buoys the dollar, eroding safe-haven appeal of the precious metal.

Meanwhile, gold for immediate delivery has slumped 2.5 per cent this week, the most since the five days ended May 5.

Globally, gold fell 1.27 per cent to USD 1,247.80 an ounce and silver by 1.41 per cent to USD 15.70 an ounce in New York yesterday.

In addition, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 200 each to Rs 29,750 and Rs 29,600 per 10 grams, respectively. The precious metal had lost Rs 300 in the previous two days.

Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams in limited deals.

In sync with gold, silver ready dived Rs 425 to Rs 37,700 per kg and weekly-based delivery traded lower by Rs 355 at Rs 36,980 per kg.

Prices of silver coins, however, held steady at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.

Sugar prices end lower on ample stocks

New Delhi: Sugar prices tumbled by Rs 55 per quintal at the wholesale market in the national capital on adequate stocks position following constant supplies amid selective buying by stockists and bulk consumers.

Besides, higher output estimates by the International Sugar Merchant Association kept pressure on sweetener prices.

Meanwhile, sugar prices have fallen by almost Rs 100 per quintal in the three days.

Marketmen said sugar glut in the market on steady inflow of supplies from mills along with need base buying by stockists and bulk consumers mainly dragged down the prices.

Sugar ready M-30 and S-30 prices traded lower by Rs 50 each to settle at Rs 3,560-3,750 and Rs 3,550-3,740 per quintal.

Mill delivery M-30 and S-30 prices also slipped by Rs 55 each to end at Rs 3,350-3,520 and Rs 3,340-3,510 per quintal.

In the mill gate section, sugar Sakoti, Chandpur and Modinagar dropped by Rs 50 each to Rs 3,400, Rs 3,345 and Rs 3,405, while Dhanora, Simbholi and Anupshaher slipped by Rs 45 each to Rs 3,475, Rs 3,485 and Rs 3,360 per quintal.

Prices of Dhampur, Ramala, Baghpat, Morna, Nazibabad and Nanota also moved down by Rs 40 each to Rs 3,365, Rs 3,370, Rs 3,380, Rs 3,375, Rs 3,370 and Rs 3,365 per quintal respectively.

Following are (Friday) quotations (in Rs per quintal)

Sugar retail markets – Rs 36.00-39.00 per kg.

Sugar ready: M-30 Rs 3,560-3,750, S-30 Rs 3,550-3,740.

Mill delivery: M-30 Rs 3,350-3,520, S-30 Rs 3,340-3,510.

Sugar millgate (including duty): Mawana Rs 3,440, Kinnoni Rs 3,520, Asmoli Rs 3,495, Dorala Rs 3,440, Budhana Rs 3,440, Thanabhavan Rs 3,435, Dhanora Rs 3,475, Simbholi Rs 3,485, Khatuli Rs 3,505, Dhampur Rs 3,365, Ramala Rs 3,370, Anupshaher Rs 3,360, Baghpat Rs 3,380, Morna Rs 3,375, Sakoti Rs 3,400, Chandpur Rs 3,345, Nazibabad Rs 3,370, Modinagar 3,405, Shamli 3,465, and Nanota 3,365.

 

India’s gdp growth to rise to 7.5% in 2018: Morgan Stanley

NEW DELHI: The Indian economy is expected to witness cyclical growth recovery, with real GDP growth likely to accelerate from 6.4 per cent this year to 7.5 per cent in 2018 and further to 7.7 per cent in 2019, says a report.

According to global financial services major Morgan Stanley, corporate return expectations and balance sheet fundamentals are improving, and a strengthening financial system should be able to meet investment credit demand.

“This sets the stage for a fully fledged recovery in 2018, and we expect real GDP growth to accelerate from 6.4 per cent in 2017 to 7.5 per cent in 2018 and further to 7.7 per cent in 2019,” Morgan Stanley said in a research note.

The global brokerage is confident about prospects for a recovery in private capital spending as demand conditions are improving post demonetisation and GST implementation.

Besides, both consumption and exports are picking up and this in turn should lead to an improvement in corporate revenues.

“…plan to recapitalise the state-owned banks would remove the potential tail risk of the banking system posing a drag on growth, improve the headroom for growth and boost investors’ and domestic corporate sentiment,” Morgan Stanley said, adding “this should help to cement the growth acceleration and capex recovery that we were expecting”.

On prices, the report said the cyclical growth recovery and normalising food prices should drive a pick-up in headline inflation.

“Against the backdrop of better macro outlook, we expect the RBI to hike in the second half of fiscal 2019,” it noted. The Reserve Bank of India in its fifth bi-monthly review for the current fiscal on December 6, kept repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent.

WGC for phase-wise implementation of mandatory hallmarking

Mumbai: The World Gold Council (WGC) called for implementation of mandatory hallmarking in a phased manner in the country.

The government has indicated that it is planning to make hallmarking along with carat count mandatory for the gold jewellery sold in the country from January.

“We believe that a gradual roll-out of mandatory hallmarking would prove most beneficial to India, structured in three phases. The first phase could cover India’s 22 largest cities, from Mumbai and New Delhi to Nagpur and Patna.

“The second phase, beginning a year later, can cover around 700 district headquarters. The third phase would begin in (next) one or two years to roll out programme across India,” the WGC said in its report.

The report, ‘Mandatory hallmarking: Global practises and road map for India’, is about the current state of gold hallmarking in India and a holistic study of the country’s gold market.

WGC India Managing Director Somasundaram P R said: “The gold industry in India is at the cusp of transformation, as transparency, standards and infrastructure begin to define the next phase of reforms. It is time to take hallmarking forward along the path to mandatory enforcement, leaving no room for debate around purity and safeguarding the interests of the consumer.”

According to the WGC report, despite the introduction of hallmarking standards in India 17 years ago, there are only 15,000 licensee jewellers supported by some 500 assaying and hallmarking centres (AHCs) which is inadequate.

PE/VCS interest in hotel industry revive in past 15-19 months: ICRA

KOLKATA: The hotel industry is likely to get a big boost from PE and VC funds. According to an ICRA report, with the pick-up in Revenue per available room (RevPAR)s, and the industry prospects, PE/VC interest in hotels is likely to pickup further. Hitherto Hotel PE/VC deals as a percentage of the total PE/VC universe in India had at its peak accounted for a miniscule 3% of total value of deals. The largest PE deals in the hotel industry include SAMHI Hotels, Lemon Tree and the hospitality division of Panchshil realty.

Explaining further, Pavethra Ponniah, vice president, Corporate Sector ratings, ICRA says, “PE/VC activity has picked up in the market over the past 12-18 months; however, unlike the interest during 2005-2008, investors this time are cautious and looking more at operational/ready hotels, rather than going through 3-5 year construction cycle, to avoid project delays and cost overruns. Further, PE/VCs interest in the midscale segment has been driving investments in several smaller companies too during 2017. Typically, PE investments have been attracted to chains with multiple properties and a scalable model, which are also conducive to eventual listing through the IPO route. Example of such investments includes home-grown brand like Lemon Tree or asset-owning companies like SAMHI.”

PE firms typically also look for assets that have significant value-add opportunities and show upside potential. Confidence in being able to wring out operational efficiencies and a strong belief in India’s hotel industry growth story lead to sizable PE investments in Greenfield hotel projects during 2005-2008.

However, with the down cycle leading to significant delays in under-construction projects and an elongation of the gestation cycle, PE interest waned during 2010-15. Most PE funds run for 8-10 years with possible extensions of 1-3 years; the current down cycle has elongated the breakeven cycle for hotel projects to ~10+years, leading to conflict between the fund life and cash flow distributions from the PE funded asset.

“Another area which has attracted high PE interest is the budget hotel aggregator space, with players like OYO rooms, Zo Rooms, Stayzilla, Rooms On Call, and Treebo, among others, says Ms. Pavethra. “Hotel aggregator platforms act as a connect between guests and hotel listings, in return for which they charge a commission per booking. Competition in this space has been intense leading to heavy discounting (borne by the aggregator) and cash burn. Some players like Stayzilla, Roomstonight have as a result, burnt out,” she adds.

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