GMR Hyderabad International Airport Ltd has devised a three-pronged strategy to improve its revenues in the wake of a dip in the real estate market in Hyderabad
GMR Hyderabad International Airport Ltd (GHIAL), promoted by the GMR Group, has devised a three-pronged strategy to improve its revenues in the wake of a dip in the real estate market in Hyderabad, sources close to the development said.
"GHIAL's primary focus will be improving passenger traffic. The second focused area will be cargo and the third priority will be developing aerospace business, as accrued losses of the company stand at Rs250 crore," sources said.
The company, which had announced big plans to develop an aerotropolis around the Rajiv Gandhi International airport in Hyderabad, is now going slow on that front as gloom looms large over the Hyderabad real estate market on account of the ever-changing socio-political scenario in Andhra Pradesh.
"Property development is a long-term thinking now. Lot of over-supply in terms of office space and hotels is there in Hyderabad. There is no point in further supply. It is already crowded," sources said.
The group had earlier announced that they are in discussions with various chains of hospitals to set up a 500-bedded hospital at the airport here as part of their plan to develop the aerotropolis.
"But there is no development in the hospital project. We are in talks with an American Group for the hospital. We feel situation is not conducive now. We are not pushing for that," a senior GMR official said.
Group Chairman GM Rao had said they wanted to develop seven 'ports' which would form the aerotropolis with a view to support revenue and the growing airport traffic in future.
Apollo Tyres will hike prices of its products by up to 6% from April to offset spiralling raw material costs
Apollo Tyres said it will hike prices of its products by up to 6% from April to offset spiralling raw material costs. The market leader also cautioned that the tyre industry could be in red unless there is a substantial increase, a minimum of up to 10%, in product prices.
"From April onwards we will be increasing tyre prices as the overall raw material costs have gone beyond manageable levels," Apollo Tyres chief (India operations) Satish Sharma said.
From the first quarter of the next fiscal, Mr Sharma said prices of bias commercial vehicle tyres will go up by 3% while that of truck and bus radial tyres will be dearer by 6%. "For the passenger cars, we had increased in February by about 3% and again we will raise it by another 3%," he added.
The prices of the company's passenger vehicle tyres vary between Rs2,150 and Rs12,500 per unit. The radial tyres of truck and bus are available for Rs16,900-Rs20,200. In the ongoing fiscal, raw material prices have gone up about 35%-36% against which the company has raised tyre prices by 16%-17%, he added.
Mr Sharma said the domestic tyre industry is facing a tough situation as competition and market forces are preventing it from hiking prices beyond 3%.
"Globally, since January Michelin and Bridgestone have increased prices by 8%-12%, while Goodyear has upped by 15%. In India we also need to take a cue from them," he said. Citing the company's internal study, he said in the first quarter of the next fiscal the raw material cost are expected to be 20% higher than the last quarter of the ongoing financial year.
"Our understanding is that it will remain at that level. If nothing is done, the industry will be in the red. It will require a minimum price hike of 10% for the tyre makers to be in black," he said.
For Apollo Tyres, the margins have shrunk in this fiscal he said, stating it has gone down to 10.5% in the third quarter of this fiscal as compared to 16.5% in the whole of the previous fiscal.
"The graph has been going down and one can easily guess what it will be like it the fourth quarter of this fiscal," Mr Sharma said.
Considering the present circumstances, he said it would be helpful to the tyre industry if the government allows duty free import of good rubber.
Currently, natural rubber attracts 20% import duty, while finished product is at 10%, he added.
On Wednesday, Apollo Tyres ended 0.88% down at Rs67.65 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.89% to 19,290.18.
The open offer was delayed as the Securities and Exchange Board of India had sought certain clarifications from Kotak Mahindra Capital Co, the lead merchant banker for the offer
Mumbai: US-listed iGate's open offer for buying a little over 20% stake in Indian IT company Patni Computer Systems will begin on 8th April and close on 27th April, reports PTI.
Earlier in January, iGate, in a consortium with private equity firm Apax Partners, had announced a deal to buy the entire 45.6% stake of Patni brothers-Narendra Patni, Ashok Patni and Gajendra Patni-along with General Atlantic's 17.4% holding for $921 million (Rs4,188 crore).
In a filing to the Bombay Stock Exchange, Patni said the date for commencement of the open offer has been revised to 8th April from the earlier 4th March.
The date was put off as approval from market regulator Securities and Exchange Board of India (SEBI) was pending.
The SEBI clearance was delayed as the regulator had sought certain clarifications from Kotak Mahindra Capital Co, the lead merchant banker for the offer.
Besides, iGate had also announced an open offer for purchase of up to 20% stake from public shareholders, taking the total deal size to $1.22 billion (Rs5,400 crore).
The aggregate price for the shares to be purchased in the open offer, assuming full tender, is estimated at $301 million.
In any deal involving sale of over 15% stake in a listed company, it is mandatory for the acquirer required to make an open offer for purchase of an additional 20% stake from public shareholders of the target firm.
In the Patni deal, iGate has offered to purchase 20% stake from public at a price of Rs503.50 a share-the same price paid to the promoters of India's sixth largest company.