Sun Pharma buys US injectables company Pharmalucence

pharmalucenceDrugmaker Sun Pharmaceutical Industries has acquired Boston-based Pharmalucence Inc for an undisclosed sum. The latter has a sterile injectables facility and research capabilities in the US. Sun Pharma’s latest acquisition comes within months of its $4 billion proposal (in April) to acquire troubled drug company Ranbaxy. That transaction is awaiting regulatory and other approvals. Sun’s acquisition of Pharmalucence will help strengthen its presence in the sterile injectables segment, since the manufacturing unit is close to the market, said Ranjit Kapadia, Senior Vice-President of Centrum Broking. Pharmalucence has around 100 professionals, he said, and regulatory approvals for its new facility are expected to come through this year.

- Hindu Business Line

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Keys Hotels to unlock 100 properties in India by 2018

keys hotelsKeys Hotels, a mid-market brand of New York-based proprietary fund, Berggruen Holdings, is aggressively stepping up expansion in the country with plans to have 100 hotels by 2018, up from 36 now, as part of its growth strategy in Asia’s third largest economy. A few days back, it took over the management of Ras Resorts in Silvassa, adding 85 more rooms to its inventory of 1,500 rooms. Keys, in which its MD & CEO Sanjay Sethi too owns a significant equity stake, has been active in India since 2007. The young hospitality company will use a mix of business models, including the management format, to ramp up the number of properties to 100 in the next five years.

- ToI

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New BRICS bank will give India a boost

India’s status in the world order could get elevated by the success of the proposed $100 billion New Development Bank and Contingency Reserve Arrangement proposed by the BRICS nations. At the on-going BRICS Summit (Brazil, Russia, India, China and South Africa) in Fortaleza, Brazil, the two issues will be the key to determine the relevance of the grouping for India. New Delhi, which is already grappling with balancing its economic and diplomatic interests in various regional trade pacts, can leverage the BRICS grouping only if it can use it to elevate its status in the global geo-political and geo-economic order. Finalising the modalities for the BRICS Bank and the Contingency Reserve Arrangement is, therefore, top priority for Prime Minister Narendra Modi, who is attending the three-day Summit. “I look forward to the successful conclusion of major BRICS initiatives, like the New Development Bank and the Contingent Reserve Arrangement, which have seen significant progress since their launch in New Delhi in 2012. “These initiatives will support growth and stability in BRICS and also benefit other developing countries,” Modi said in a statement before leaving for the BRICS summit. BRICS countries account for a population of 3 billion.

brics bank“One reason why BRICS is important for India is the fact that it got an outsider (a Goldman Sachs economist) to acknowledge its importance as a member of the group,” points out Ram Upendra Das from RIS (Research and Information Systems) for Developing Countries. Although the BRICS nations got together during the 2008 economic crisis and demanded that multilateral institutions be reformed to reflect the increasingly central role of emerging markets, the US Congress did not ratify IMF Quota Reforms of 2010, which would have given a greater voice to them in the running of the fund. The New Development Bank, with an initial corpus of $50 billion which could later be doubled to $100 billion, could be an alternative to the IMF to fund not just India’s infrastructure needs, but also of other developing countries, like many in South America, who don’t like borrowing from the IMF because of the many strings attached. “The Modi-Government has to ensure that the Development Bank gets operationalised soon as funding other develop economies will increase India’s global clout,” an economist from a Delhi-based research agency said. The Contingency Reserve Arrangement would give an added insurance to BRICS countries, that in times of crisis they can bail each other out, Das added. A stronger BRICS can also have more influence in other multilateral forums such as the World Trade Organisation and the Climate Change convention.

The challenges ahead, especially one posed by China’s dominance in the region, however, have to be tackled first. To ensure that it has an equal say in the Development Bank’s activities and China does not get an upper-hand, India will have to ensure that all BRICS members contribute equally to it. But China’s weight also makes the group stronger. “Chinese support to BRICS will make sure that group remains a force to reckon with in the future. Therefore, BRICS is likely to remain an effective multilateral forum in a multi-polar international order,” a report by the Institute for Defence Studies and Analysis said.

- Hindu Business Line

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Wipro buys ATCO IT arm for $1.1 billion

Wipro has entered into a multi-million dollar dual pact with ATCO through which India’s third largest software services company will provide a complete suite of outsourcing solutions to the Canadian firm as well as acquire its IT services arm. The Bangalore-based firm on Friday said it signed a series of Master Services Agreements with ATCO under which Wipro will acquire ATCO’s IT subsidiary for an all-cash consideration of CAD 210 million ($195 million or over Rs 1,176 crore). The sale is expected to be completed in the third quarter of 2014. Besides, Wipro has also secured a 10-year IT deal with ATCO for providing outsourcing services, which will result in annual revenues of over CAD 120 million ($112 million or over Rs 675 crore) for Wipro for the next 10-years. Alberta-based ATCO Group is one of Canada’s premier corporations. As a $16 billion enterprise with more than 9,800 employees, ATCO Group is engaged in structures and logistics, utilities, energy and technologies. As part of the alliance, Wipro will provide outsourcing solutions, including infrastructure management and application development and maintenance, to ATCO in Canada and Australia for 10 years upto December 2024.

atco“The arrangement is projected to result in revenues of over CAD 120 million ($112 million or over Rs 675 crore) to Wipro annually…We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia,” Wipro Chief Executive (Energy, Natural Resources and Utilities) Anand Padmanabhan told reporters on a conference call. In 2011, Wipro Technologies had acquired the global oil and gas IT practice of Science Applications International Corporation for an all cash deal of about $150 million. The energy and natural resources vertical has been Wipro’s fastest growing division over the past few years. In FY2013-14, energy, natural resources and utilities accounted for 16 per cent of the company’s revenues as against 15 per cent in the previous fiscal. The alliance with ATCO will also enhance Wipro’s capability to create, nurture and tap local talent to power its growth journey in Canada and Australia, Padmanabhan added. ATCO’s subsidiary, ATCO I-Tek, will become a part of Wipro after the closure of the deal, which is expected to be completed in this quarter. On the sale of its IT services arm, ATCO said: “The decision to outsource ATCO’s IT services was due in part to increasing regulatory challenges faced by ATCO?s utility companies when applying to the Alberta Utilities Commission to include IT costs, provided by ATCO I-Tek, for recovery in customer rates.” By competitively outsourcing its IT services, ATCO is addressing the concerns expressed by the Alberta Utilities Commission, it said in a statement.

- ToI

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Tata Chemicals Innovation Centre in Pune launched

Cyrus Mistry, Chairman, Tata Chemicals, today inaugurated its state-of-the-art Innovation Centre in Pune. The centre will be the technology and innovation hub which will incubate and support the company’s growth vectors in wellness foods, agri and chemistry solutions. The centre would also provide technology support to other Tata Group companies. Mistry said, “Consumer- centric technology and Innovation can provide sustainable differentiators for our group companies. For this, management of technology and innovation will need to form a key pillar of strategy. This may be institutionalized through the creation of a suitable culture together with appropriate processes and mechanisms. The interdisciplinary Innovation Centre can play a valuable role in this endeavour.”

tata chemicalsTata Chemicals is a global company with interests in categories ranging from food to water purification through both industry and consumer brands. The company says that it is focused on businesses that focus on LIFE- Living, Industrial and Farm Essentials. R. Mukundan, Managing Director, Tata Chemicals, said, “We are excited and energized that Tata Chemicals, in its 75th year is inaugurating an institutional mechanism to live our mission of ‘Serving Society Through Science’. We have a history of leading and, as we build on our past, Technology, Innovation and Customer immersion are critical enablers in our next phase of profitable growth in our journey to create value for all our stakeholders. We plan to dovetail our consumer insights with product development processes to provide solutions that are unique and valued by our consumers and customers.”

- ET

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