15 October 2019

Table of Contents for Ticker Tapes





International

AUSTRALIA EYES INDIA’S SMART SPACE

Australian companies are exploring opportunities in India’s diversified infra sector with a focus on the Centre’s smart cities project. As part of Australia Business Week in India (ABWI), over 40 infrastructure companies recently visited India country looking for investment opportunities and partnerships with domestic players in India’s Smart domain. The Australians are looking at smart cities project where multinational agencies like World Bank and ADB, and sovereign funds like JIACA, KFW and others are investing, because they are backed by financing and it is transparent, something Australian companies are saying they are comfortable with. Australian businesses have been exploring partnerships with conglomerates like Tatas and Shapoorji Pallonji.

Australia’s $130-billion Future Fund has been scouting for investments in Indian infrastructure space, although nothing has yet been delivered on the ground. Australia is also interested in offering Indian infrastructure companies opportunities in its domestic market where in infrastructure development programmes are investing $50-60 billion.

 

 

L&T PIPELINE FOR KOC

Global EPC Engineering major Larsen & Toubro (L&T) bagged a Rs.1,700 crore contract to construct a crude oil pipeline in Kuwait. Its hydrocarbon division won a major pipeline contract valued close to Rs 1,700 crore from Kuwait Oil Company (KOC) for Engineering, Procurement and Construction of a new 48" Crude Transit Line (TL-5) from North Kuwait to Ahmadi. The pipeline project is scheduled to be completed during the third quarter of 2020.

L&T won this project in the face of stiff international competitive bidding. The company’s ability to deliver ‘design to build’ engineering and construction solutions across the hydrocarbon spectrum gets a boost with this mandate. L&T is currently executing Gathering Centre-30 (GC-30) project for KOC, and has been involved in serving the onshore hydrocarbon sector since the early 1990s.    

 

 

BHEL EXPANDS GLOBAL FOOTPRINT

PSU major Bharat Heavy Electricals Ltd (BHEL) has expanded its global footprint into Chile and Estonia. With maiden orders for transformer bushing from Niquel Electric Ltd., Chile, and electronic cards from Scanfil OY Vana Sauga, Estonia, BHEL has now expanded its global footprint to 82 countries. The company has been aligning its export strategy in line with global dynamics and has secured highest ever export orders — of over Rs.10,000 crore — from 23 countries during fiscal 2017.

BHEL also bagged its largest ever export order for setting up the 1,320 MW (2×660 MW) Maitree Super Thermal Power Project in Bangladesh, BHEL’s largest power project order in the international market. Recently, BHEL also forayed into two other African countries Togo and Benin.

BHEL is favorably placed in Africa, projects include a Combined Cycle Power Plant in Tanzania and a Hydro Power Plant in Zimbabwe, which are nearing financial closure soon. The company is also focusing on providing after sales support to its customers in existing overseas projects.

 

 

$1.4 BN BRICS LOANS APPROVED

Ahead of the BRICS summit, the New Development Bank (NDB), approved $1.4 billion loans for sustainable development projects in China, India, and Russia. India gets a $470 million loan for Madhya Pradesh’s Multi-Village Rural Drinking Water Supply Scheme Project. Four projects approved are in line with national development agenda of member countries and the NDB’s mandate of mobilizing resources for infrastructure and sustainable development in BRICS and other emerging economies and developing countries.

Other loans include China’s two billion yuan, Hunan Green Area Watershed Environmental Development Project, to enhance flood control and improve water quality in Xiang River watershed. Also China’s Jiangxi Industrial Low-Carbon Restructuring and Green Development Pilot Project will get a $200 million loan to promote energy conservation, resources recycling and pollutants reduction through technology upgrades.

The NDB will provide a $460 million loan to the Russian Federation for developing infrastructure and implementation of information technology systems of Russia’s judicial system in Russia.

The loans were approved ahead of the BRICS (Brazil, Russia, India, China and South Africa) summit to be held in China’s Xiamen city from September 3 to 5.

 

 

GIC TO BUY DLF STAKE

Promoters of DLF will likely sign a deal soon with Singapore sovereign wealth fund GIC to sell their 40 per cent stake in a rental arm for an estimated Rs.13,000 crore. End 2015, DLF had announced that its promoters would sell their entire stake in the DLF Cyber City Developers (DCCDL), which holds the bulk of the commercial assets of the group.

March this year promoters entered into an exclusivity pact with GIC to negotiate on this transaction. Promoters might infuse a major chunk of the proceeds into DLF, which in turn would use this amount to cut its net debt that has reached nearly Rs.26,000 crore.

 

 

SSWL BAGS EU ORDER

A major exports order has been by Steel Strips Wheels (SSWL) to supply steel wheels for EU trailer and aftermarket segments. In a notice to the exchanges, it said the total order covers supplies of approximately 8,500 wheels in a period of 2 months. Wheels will be dispatched from SSWLT’s Chennai Dappar plant. This order augments SSWL’s strong presence in the extremely competitive EU Caravan and aftermarket for steel wheels. The company expects repeat orders this financial year.

 

 

MAHINDRA TO EXIT CHINESE JV

Mahindra & Mahindra Group plans to exit its Chinese tractor JV, Mahindra Yueda Yancheng Tractor Company, by selling its entire stake for RMB 82 million (nearly Rs.80 crore). The Indian conglomerate has plans to operate independently in China. Mahindra & Mahindra holds 51 per cent stake in the Chinese JV through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Ltd.

"Mahindra Overseas Investment Company (Mauritius) Limited (MOICML) has agreed to sell its entire shareholding of 51 per cent in Mahindra Yueda Yancheng Tractor Company Ltd (MYYTCL), China. Upon receipt of requisite regulatory approvals and completion of other formalities, MYYTCL will cease to be a subsidiary of MOICML, Mahindra & Mahindra declared in a regulatory filing. The company is selling its entire stake to Jiangsu Yueda Investment company (2 per cent stake), Jiangsu Yueda Group (39 per cent), and Yan Bingde (10 per cent) for an aggregate amount of 82 million RMB or about Rs.80 crore.

The equity transfer for the deal has been executed and the deal is expected to be closed by end September.

 

 

THYSSENKRUPP TATA STEEL’S MEGADEAL

Germany global steel major Thyssenkrupp and Tata Steel (Europe) struck a preliminary deal last month to merge their European steel operations in a 50-50 joint venture to create Europe’s No.2 steelmaker, after ArcelorMittal. The deal will not involve any cash but both groups would contribute debt and liabilities to achieve an equal shareholding and remain long-term investors. Both companies say they need to consolidate to address overcapacity in the European steel market, which faces cheap imports from China and elsewhere, a situation aggravated by subdued demand for construction and inefficient legacy plants.

The deal will allow Tata Steel to reduce its pound 15 billion ($20 billion) pension liabilities, long seen as the main hurdle in talks between both companies, which have lasted over a year-and-a-half. Thyssenkrupp says it is tackling structural challenges of European steel industry and creating a strong No.2 in Europe with this deal . The new company Thyssenkrupp Tata Steel, will be headquartered in Amsterdam. The deal will require the approval of Thyssenkrupp's Supervisory Board and Tata Steel's Board of Directors, and the European Commission.

 

 

GE BAGS SP’S B’DESH PROJECT

Energy solutions provider GE has bagged a contract from the Shapoorji Pallonji (SP) Group to supply power generation hardware for their upcoming 220 MW combined cycle power plant in the Bhola District in Bangladesh. This will be GE’s second power plant of the same capacity in Bhola, the first was commissioned in 2015. GE’s technology advantage and local presence in South Asia gives it an edge in addressing customer needs in the region. GE Power will supply the full suite of engineered equipment package (EEP) for the project, including two 6F.03 gas turbines, two heat recovery steam generators (HRSG), one steam turbine generator, condenser, and associated control systems. GE will also provide technical expertise for installation of the project. This project will also be an important milestone for the SP Group in Bangladesh, contributing towards increasing the country’s power generation capacity.

 

 

ALDS, ROE, SIGN MOU

 Ashok Leyland Defence Systems (ALDS), has signed An MoU on cooperation with Rosoboronexport (ROE), Russia, and an Indian firm ELCOM Group, to provide tracked vehicle solutions to Indian armed forces. ROE is the only state-run firm in Russia for export of an entire range of military products and technologies. ELCOM Group is a player in strategic electronics, avionics and tactical communication globally. ROE has chosen ALDS and ELCOM as its partners in India to address the tracked vehicle upgrade programme of Indian armed forces.

Indigenisation and availability of service and parts has been an area of concern and ALDS and ELCOM will be responsible for manufacturing them in India and also providing life cycle support. AL has supplied logistics and special role vehicles to the Indian Army past 25 years.

 

 

PUNJ LLOYD BAGS NHAI PROJECT

National Highways Authority of India (NHAI) has awarded its first Myanmar project to a Punj Lloyd JV, the project is worth Rs.1,177-crore. A joint venture between Punj Llyod and Varaha Infrastructure Ltd has won the bid to construct the Yagyi- Kalewa road section in Myanmar at a cost of Rs.1,177 crore. The project Was awarded by NHAI during PM Modi’s 3-day visit to Myanmar to help strengthen bilateral ties. NHAI had received four bids for the project, WHICH included the Punj Lloyd JV, Jaypee, APCO, and Effkon. The project will be executed within 36 months in the EPC mode, comprising a road stretch of nearly 120 km including construction of 3 major and 2 minor bridges, and the company is also supposed to maintain the project for five years. The project is being funded by the Ministry of External Affairs and NHAI will be the implementing agency.




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