Promoting India Latin America Collaboration

Suzlon arm to spend $5 bn on green energy

Business Standard

Suzlon Energy Chairman and Managing Director Tulsi Tanti announced the company’s plan at the 2008 Clinton Global Initiative (CGI) of former US President Bill Clinton in New York, said a press statement issued by Suzlon.

Of the total project value of $5-billion, Suzlon Green Power will provide approximately $1.5 billion in equity. Suzlon Green Power will acquire existing green power assets and greenfield power projects.

“Suzlon Green Power’s business model will offer us an asset-based, long-term annuity income while mitigating the twin challenges of global warming and climate change. It also adds greater vertical integration to our holdings, building the value of our businesses in the long term,” said Tulsi Tanti.

The company estimates that its projects will create 1,000 jobs directly and many times more indirectly and will reduce 7 million tonnes of carbon dioxide emission each year.

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Anil Ambani promoted ADAG Group slots USD $13.3 billion for green energy

Business Standard

Anil Dhirubhai Ambani Group (ADAG)-promoted Reliance Power (R-Power) is planning to invest over Rs 60,000 crore (USD $13.3 billion at 1USD ~45INR) in renewable and alternative energy resources such as hydroelectric, wind, solar and fuel cell-based power.

R-Power Chairman Anil Ambani said the company was planning to generate about 5,000 MW from hydroelectric energy and that most of the projects for the same would come up in water-abundant northeastern states. He was addressing the company’s 14th annual general meeting (AGM) in Mumbai.

Ambani said R-Power had engaged international companies such as Halcrow of the UK, SNC Lavlin of Canada and SMEC of Australia to assist in various aspects of their hydro projects.

The global financial crisis, the official said, would not affect the company’s fund-raising plans as its balance sheet was well capitalised through money raised from its recent initial public offer (IPO). The company had mobilised around Rs 11,500 crore through the IPO.

Commenting on the wind energy sector, Ambani said ADAG was currently setting up facilities for 150 MW wind power in Maharashtra and had plans to add 500 MW over the next three years at suitable locations.

A source said R-Power has placed equipment orders for 150 MW with wind energy major Suzlon. New wind power installations would come up in Maharashtra, Karnataka and Gujarat before December 2009.

Recent initiatives announced by the Government of India for Grid Interactive Multi-Megawatt Solar Thermal Power had given a boost to the solar power market in the country, he said, adding that R-Power was considering the possibility of setting up a one-of-its-kind, 100 MW grid interactive concentrating solar power (CSP) plant through an exclusive alliance with a technology provider.

R-Power was also evaluating the techno-commercial feasibility of commercially producing reformer-based cells and hydrogen technology in India. The company was in an advanced stage of discussion with a global firm on the design, development and manufacture of the same, he said.

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Building fashion empires of their own


International Herald Tribune

Some insiders believe that Indian brands, which already have a majority share of the country’s luxury market at their fingertips, are more attractive to investors than local designers in other emerging economies.

“Why smaller versions of the European conglomerates?,” asks Akshaya Chauhan, a director of the Fashion Design Council of India, who believes that nascent Indian conglomerates have every reason to dream big and try to match the scale of LVMH one day.

Unlike in Russia, China or Brazil, fashion consumers in India continue to favor traditional or fusion dress over imports. That gives Indian brands an edge over international luxury brands, Chauhan said, adding, “The average discerning consumer will take time before graduating to wear all-Western clothes.”

Anil Chopra, vice president for Lakme, the beauty company that sponsors Lakme Fashion Week, has seen more deep pockets sitting in the front rows of Mumbai’s fashion shows than ever before.

“Over the last two to three years, there has been a high degree of interest from potential investors in the Indian fashion business,” Chopra said. “Some are purely private equity funds, while others have been more strategic in nature, who will bring in expertise in the processes, contacts and so on.”

Mass- and mid-market Indian apparel retailers, like the Pantaloons chain and Reliance Industries, have recently spun off companies dedicated to acquiring new fashion brands. Their respective subsidiaries, Future Brands and Reliance Retail, are reportedly looking for local brands to develop.

Meanwhile, designer brands on the catwalks of New Delhi and Mumbai have already caught the eye of Sanjay Kapoor, managing director of the holding company Genesis Colors. This summer, Genesis was injected with an investment of 1.1 billion rupees , or $24 million, from a private equity consortium led by the U.S. firm Sequoia Capital Fund.

“Mr. Kapoor has invested in local brands, like Satya Paul and home-grown designer Deepika Gehani, with the goal of turning small-scale family businesses into commercial enterprises,” said Bandana Tewari, fashion features editor at Vogue India.

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South American Leaders Hail Closer Ties

efluxmedia

South American leaders gathering at the United Nations this week have been touting their own new political union, which was hailed as a coming of age for the continent.

The regional leaders gathered for a closed-door meeting Wednesday of the Union of South American Nations, a collection of 12 countries.

Chilean President Michelle Bachelet, who hosted the body’s first emergency meeting last week, hailed the union as a signal that South America could finally manage its own problems.

Last week’s Santiago summit, which dealt with a political crisis in Bolivia, “tells us that the values of democracy, dialogue, human rights and peace are becoming stronger than ever in Latin America,” Bachelet said.

“It tells us that the region wants to leave behind the dark moments of its history,” she said in a speech before the UN General Assembly.

South American leaders offered strong backing to embattled Bolivian President Evo Morales at the Santiago meeting, warning the country’s opposition to refrain from staging a coup and splitting the country. The unrest in resource-rich eastern Bolivia has centred on the region’s demands for greater income from natural gas deposits and provincial autonomy.

Morales welcomed the support in his own speech before the assembly Tuesday and launched into a tirade against the United States, whom he accused of fomenting the unrest in Bolivia that has left at least 25 people dead. Bolivia earlier this month expelled the US ambassador from La Paz.

Brazilian President Luiz Inacio Lula da Silva echoed Bachelet’s remarks in his own address Tuesday. He noted that while advanced economies were battling a financial crisis, developing countries in the Southern Hemisphere were gaining strength and political power.

The South American union gave the region a capacity to find solutions to its own problems without looking to the continent’s northern neighbour, Lula said.

The bloc, launched in May, consists of Argentina,
Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru,
Suriname, Uruguay and Venezuela.

Yet the region is still pushing trade ties with the world’s
largest economy. US President George W Bush on Wednesday met with 11
Latin American leaders at the Council of Americas in New York,
launching a new forum to boost trade between the two continents.

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FDI in Latin America, Caribbean hits record 126.3 billion dollars for 2007

Earth Times Finance General

Foreign direct investment (FDI) in Latin America and the Caribbean reached a record 126.3 billion US dollars in 2007, the United Nations Conference on Trade and Development (UNCTAD) said Wednesday in the Chilean capital Santiago. UNCTAD expected the figure to continue to rise in 2008.

Brazil, Mexico, Chile and Argentina
received a combined 67 per cent of the inflow, with Brazil alone claiming three out of every 10 dollars that arrived in the region.

In total, South America obtained 72 billion dollars in FDI in 2007 – a figure that is larger than the combined gross domestic products of Bolivia, Ecuador and Uruguay.

Central America and the Caribbean, aside from tax havens, saw an increase in FDI received to 34 billion dollars, but the UNCTAD report warned that this might be at risk in the face of the ongoing credit crisis in the United States.

Brazil alone received 28 per cent of FDI in the region, followed by Mexico at 21 per cent, Chile at 11 per cent, the Cayman Islands at 9 per cent, Colombia at 7 per cent and Argentina at 4 per cent.

UNCTAD said that the rise in investment was tied to the high prices of commodities.

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