Pantaloon May Sell Bonds, Recast Strategy - Pantaloon, the country’s largest retailer, aims to sell bonds and recast its operational strategy to conserve cash and repay short-term debt. The company’s cash flows have been negative for some time and it has been borrowing to fund expansion. About Rs 260 crore debt, mostly bridge loans, is due for payment in the next six months. The company can partly meet this with its undrawn term loans of Rs 300 crore and by issuing short-term bonds. Additionally, to boost operational efficiency, the retailer is negotiating for better credit terms and prices from vendors and improving the supply chain, including cutting inventories at the stores and introducing new promotional schemes. It is also investing in technology to enhance efficiency. (Business Standard)
Genpact’s Pramod Bhasin Appointed as Nasscom Chairman - Pramod Bhasin, chief executive of business process outsourcer, Genpact Ltd., has been appointed as the chairman of industry lobby group National Association of Software and Services Companies (NASSCOM). He has replced Ganesh Natarajan, the chief executive of Zensar Technologies Ltd. Bhasin takes over at a time when the overseas business of India’s information technology (IT) and business process outsourcing (BPO) firms are under pressure in the wake of economic downturn in the US and Europe, which are their main markets. (Mint)
Bosch to Invest Rs 250 Crore to Expand India IT Operations Robert Bosch Engineering and Business Solutions Ltd, the IT subsidiary of global automotive component maker Robert Bosch, is allocating over Rs 250 crore to expand its operations in Coimbatore. The company will induct 4,500 people into its operations at the Coimbatore Hi-Tech Infrastructure Private Ltd (CHIL) IT SEZ in Saravanampatti near Coimbatore. The IT subsidiary currently employs over 4,000 people at centres in Bangalore and Coimbatore. (Business Standard)
Aircel to Invest Rs 1,100 Crore for Mumbai Foray - Aircel, the country’s fifth-largest GSM operator, will invest nearly Rs 1,100 crore for its foray into the Mumbai cellular circle. Aircel, the Indian subsidiary of Malaysia’s Maxis Communications, is expected to launch its operations in Mumbai later this month. This will complete Aircel’s rollout across the metros. To date, Aircel has already made an investment of Rs 600 crore in Mumbai. Mumbai, where the penetration levels are close to 80%, is the highest revenue-generating circle. (The Economic Times)
DDA Seeks Bank Guarantee for Emaar MGF Bailout - The Union urban development ministry has sanctioned issue of a first instalment of Rs 100 crore agreed on to the cash-strapped Emaar MGF, but Delhi Development Authority (DDA) first wants the guarantee. Emaar MGF is the developer of the Commonwealth Games village. It was to finance the construction by taking deposits for sales of two-thirds of the 1,168 apartments to be built to house the athletes - those who booked are to get the flats after the Games. The remaining flats were to go to DDA, which would sell these separately. (Business Standard)
Syntel to Invest $30- 35 Million - Syntel Inc, a player in the KPO segment, is planning to invest around $30-35 million (Rs 150-175 crore) in 2009, majority of which is expected to be pumped into in India to create new facilities and upgrade the existing ones. The company which reported 22 per cent in revenue in 2008, had set revenue guidance for 2009 of $385 million (around Rs 1,920 crore) to $425 million (around Rs 2,125 crore). Syntel’s capital investment in 2009 is expected to be between $30 million and $35 million, the similar amount which was spent in 2008 in India. The majority of this spend relates to company’s second growth phase in Pune Campus which came online during the first quarter, and the launch of our new Chennai campuses scheduled for later this year. (Business Standard)
Bharti Axa General May Infuse Rs 120-cr in FY10 - Bharti Axa General Insurance Company, which began its operations seven months ago, is planning to infuse an additional capital of Rs 120 crore in 2009-10. the company’s current capital position is Rs 190 crore, while an additional capital of around Rs 120 crore will be infused by the joint venture partners in this financial year. The private sector company, a joint venture between Bharti Enterprises and the UK-based Axa has collected a premium of around Rs 29 crore from September 2008 to March 31, 2009. The proposed capital infusion would help the company upgrade IT systems and also to expand to Tier-II cities and towns. Currently, the private sector insurer has 30 branches across the country. By the year-end, the company would increase the number of its branches to 80 and employ 1,500 people, he added. (Business Standard)
Fidelity to Not Take Decision on Open Offer to Firstsource Shareholders - Fidelity National Information Services (FIS), which is acquiring NYSE-listed Metavante Technologies for around $3 billion, has said it will not take any decision on making an open offer to the shareholders of Firstsource till the third quarter of 2009, when the transaction is completed. FIS may have to go for an open offer as Metavante owns around 20 per cent stake in the Mumbai-based business process outsourcing (BPO) firm and the acquisition tantamounts to an indirect entry into Firstsource. (Business Standard)
