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MUMBAI | 38 PAGES | *. `3.00 OR . `6.00 ALONG WITH THE TIMES OF INDIA TUESDAY, 21 JULY 2015 Why IPL Shouldn’t be Allowed to Die BUSINESS OF BRANDS 5 Indian Hockey Team Coach Paul van Ass Gets The Boot SPORTS 22 UK Watchdog FCA Visited Barclays 186 Times in 2014 WORLD VIEW17 BENNETT, COLEMAN & CO. LTD. T HE E CONOMIC T IMES WWW.ECONOMICTIMES.COM Our Bureau Mumbai: India’s largest drugmak- er Sun Pharma on Monday warned that the company’s revenues for the financial year 2015-16 might be flat or even decline due to expenses arising out of what it described as “remedial and integration mea- sures” arising out of its acquisi- tion of Ranbaxy. “We have to be realistic and pre- pare for adverse news ahead,” warned Dilip Shanghvi, managing director of Sun Pharma, in a call with analysts. Concerns Over Halol Facility Too21 Ranbaxy Haze Envelops Sun Co sees hit on FY16 revenues over costs related to fixing Ranbaxy issues Sugata.Ghosh @timesgroup.com Mumbai: The government has sought the opinion of legal ex- perts on allowing foreigners to directly invest in Indian ven- ture capital (VC) and private equity (PE) funds. A direct access under the “au- tomatic route” would quicken fund inflows, cut cost and do away with investment pooling vehicles in tax havens such as Mauritius. Local funds, categorised as three types of Alternative In- vestment Funds (AIF), include VC and angel funds, funds for investing in infrastructure, small businesses and real es- tate, as well as the new breed of domestic hedge funds. Prior FIPB Approval21 Foreigners may Get Direct Bite of Indian VC, PE Funds WELCOME MOVE Govt consults legal experts; move would quicken inflows, cut cost and do away with investment pooling vehicles The finance ministry is looking at allowing greater pricing flexibility for securities with an exit valuation clause at a rate set before- hand, technically known as a ‘call and put option’, which will help avoid NTT DoCoMo-Tata like controversies, reports Deepshikha Sikarwar. FULL REPORT19 Review of ‘Call & Put Option’ Rules Let Defence Buys Only be a General Affair, says Panel Sees major role for India Inc in building warships, aircraft & armoured vehicles Manu.Pubby@timesgroup.com New Delhi: Ministers should stay out of defence deals — gen- erals should be allowed to take the call. This radical proposal has come from a ministry of de- fence (MoD) panel tasked to re- view India’s defence acquisition procedures. The panel, led by former home secretary Dhirender Singh, also recommends Indian private sec- tor leadership in high-value and key defence areas like manufac- turing warships, aircraft and ar- moured fighting vehicles. On its proposal to keep the polit- ical class out of defence purchas- es, including the biggest deals, the panel says: “Whereas prima- cy is accorded to the political ex- ecutive in all decision-making and especially on strategic na- tional security issues, in matters of defence systems and equip- ment based on user preference and tactical and operational doc- trines, the Armed Forces must have a decisive role.” External Procurement Agency20 ‘NO ROLE FOR MINISTERS’ Aditi.Shrivastava1 @timesgroup.com Bengaluru: Taxi app Ola is pre- paring to offer shuttle bus ser- vices for urban commuters by aggregating tourist and char- tered buses on its platform, ac- cording to two people privy to the company’s plans to emerge as a complete urban transport solu- tions provider. Ola — one of India’s ‘unicorn’ startups estimated to be worth about . `15,700 crore, or $2.5 billion — expects to launch the bus ser- vice in the next two months with the Ola Bus feature integrated in- to the company’s app, allowing riders to choose between cabs, autos and buses. Bid to Expand User Base20 Just Don’t Say Bus! Ola to Start Rides on Demand LAUNCH IN 2 MONTHS Co to aggregate tourist and chartered buses A Bigger Ride Sundeep Sahni, Ola’s head of new initiatives, is leading the launch INCREASE the user base COLLECT data of passengers that can be used for analytics CREATE new business line for the company THIS HELPS OLA TO Ola currently serves taxis and autos on its app Finally, Consumer Goods Makers Get Serious About Ecommerce Consumer goods makers such as Samsung, Whirl- pool and Godrej have started to develop separate lines of models and are even contemplating their own brand stores in ecommerce sites. Business of Brands5 Tata Steel Seeks Shareholder Nod to Raise up to . `10,000 Crore Tata Steel sought shareholder approval to raise up to . `10,000 crore through sale of securities, the steelmaker said in its latest annual report. Companies7 llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Snapdeal to Double Engineering Team to Over 2,000 This Year Snapdeal plans to more than double its engineer- ing team to over 2,000 this year as the online re- tailer intends to be a technology, product and en- gineering-driven company. Companies9 llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll StanC CEO Winters Makes First Move Towards Reshaping Bank StanChart CEO Bill Winters made his first signif- icant move in reshaping the bank by simplifying its structure and transferring key people while stripping his deputy Mike Rees of his powers. Markets & Finance15 llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll Unions to be Consulted on Labour Reforms, Says Prime Minister A day after meeting trade union leaders, PM Modi said changes in labour laws will be carried out via consensus and in consultation with the unions. Economy19 Inside story -0.07 -0.15 0.27 0.40 -0.30 -1.35 -1.14 -0.71 % CHANGE Re/US $ Gold Std* Silver (`/kg) Brent ($) *(`/10gm) Compiled by ETIG Database Nifty Sensex BSE Midcap BSE Smallcap LAST 8,603.45 28,420.12 11,250.10 11,763.34 63.67 25,600.00 34,600.00 55.94 Market Tracker Will the govt be able to get significant Bills passed this monsoon session? www.economictimes.com Is there a significant downside to gold from current levels? TODAY’S QUESTION 52% YES 41% NO 7% CAN’T SAY Our Bureau New Delhi: Bharti Airtel is in exclusive talks to sell four of its African subsidi- aries to France’s Orange SA which may net the world’s third-largest telco around $1 billion (. `6,400 crore). Airtel is looking to sell its operations in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone, all Francophone countries, or non-English speak- ing markets in Africa, a continent where the company has been mak- ing losses since its entry in 2010 which has been dragging the carrier’s consolidated financials. Sources say Airtel is looking for a valuation between $900 mil- lion and $1 billion for the sale. The four countries in question roughly contribut- ed about $650-660 million to Airtel Afri- ca’s top line of $4.71 billion as of March- end. Earnings before interest, taxes, de- preciation & amortization (EBITDA) for the four countries was close to $180 mil- lion in the period. “Orange and Airtel have entered into an exclusive agreement to explore the possi- ble acquisition by Orange of Airtel’s sub- sidiaries in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone,” a state- ment issued by Bharti said late on Mon- day. However, the statement added that these were only negotiations and there was “no certainty” of any binding agree- ment as a result of these discussions. It didn’t provide any further details. Africa has long been a drag on Bharti’s overall performance, often offsetting the healthy growth numbers the compa- ny registered in its Indian operations. Airtel Suffered $183-m Q4 Loss in Africa21 Airtel in Talks to Sell 4 African Arms to Orange Deal may garner around $1 b for world’s 3rd-largest telco Ravish.Tiwari @timesgroup.com New Delhi: The fragility of the Op- position unity in the Rajya Sabha, where BJP lacks a majority, sur- faced on Monday with the Samaj- wadi Party, which has the third- largest block of members in the Up- per House, refusing to toe the Congress line on demand for resig- nations and the land Bill. Speaking to ET on the eve of the monsoon session of Parliament, leader of SP in the Rajya Sabha, Ram Gopal Yadav, said Congress was being “adamant” on the land acquisition Bill and its stand lacks “pragmatism”. Further, Yadav said that while he could not commit on Rajasthan Chief Minister Va- sundhara Raje, his party was sure- ly against demanding the resigna- tion of External Affairs Minister Sushma Swaraj and Madhya Pra- desh CM Shivraj Singh Chouhan. Yadav Advocates Middle Path20 Oppn Unity Under Strain, SP Refuses to Back Cong A day before the monsoon session of Parliament begins, Parliamentary Affairs Minister Venkaiah Naidu tells Nidhi Sharma the government is willing to discuss any issue. He also promised a statement by Sushma Swaraj.3 Govt Ready for Talks, says Naidu Tata Motors has hired Accenture to chart a restructuring and performance improvement programme to become a nimbler organisation, report Devina Sengupta & Ketan Thakkar.7 Accenture to Help Tune Tata Motors Special Feature The Rising Tide An ever-increasing number of Indian- origin execs have come to occupy key corporate positions recently. Here’s a look at some of those who could go on to become the next generation of global business leaders.18 Gold prices fell to . `25,000 per 10 gm on Monday trig- gered by a drop in overseas bullion to a five-year low of $1,080 an ounce, report Sutanuka Ghosal & Ram Sahgal. Gold fell to $1,080 from $1,132 an ounce after 5 tonnes of bullion were offloaded in the Chinese market.13 Yellow Metal Slips to 5-Yr Low Dubai-based Emaar and Indian partner MGF are close to ending their decade- old JV, reports Arun Kumar. The two are said to be in advanced talks to finalise the contours of the separation exercise.8 10-YEAR-OLD JV Emaar & MGF may go Their Separate Ways The Rajya Sabha select committee on GST Bill has cleared its draft report. In the process, it has shot down all points of objections raised by Congress.3 GST: Cong Demands Steamrolled Charting Plans Foreign investors may be allowed to directly invest in Indian VC & PE funds Govt has sought views of some legal experts Direct access would cut cost, improve fund inflow This would create a local fundraising platform in India Funds in India have been pitching to govt to open up foreign investment Foreign investors need not come through Mauritius A Bitter Pill FY16 revenues expected to remain flat or even decline Street is expec- ting PAT to grow by 53% at `6,900cr & revenues to grow by 14% at `31,500cr Profit decline is expected because of remedial action of Ranbaxy facilities SUN MIGHT SELL NON-CORE BUSINESSES OF RANBAXY The Key Suggestions External procurement agency with dedicated staff that would focus on self-reliance, not just procurement Six Areas For Pvt Sector Strategic Partnerships: Warships, aircraft, armoured vehicles, missile systems, networks & critical materials. Projects over `10,000 crore Tectonic Shift In Procedure: Armed forces & not political class should have decisive role in defence deals Tax incentive for Make in India, 20% of development cost be treated as R&D LIABILITY OF pvt entities to be capped while execut- ing a defence project; as of now it is unlimited COMMON TESTING FACILITY for pvt industry, access to labs by payment Exports to be encouraged, negative list to be generated but cos with industrial licences to get easy export permissions ON CONGRESS STAND There has to be some pragmatism. You can- not build highways, petrol pumps or public amenities without land FULL INTERVIEWPAGE 4 CUTTING LOSSES: Sunil Mittal Ram Gopal Yadav says GOP’s stand on land bill lacks pragmatism Bharti Airtel is looking to sell its ops in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone
