New Delhi, May 12
After four months of slow growth, industrial production growth in March beat forecasts to grow 7.3 per cent. However, the industry remains cautious about growth ahead due to rising interest rates.

Finance Minister Pranab Mukherjee said that the comforting news on the inflation front with food inflation moderating from 8.53 per cent to 7.70 per cent is matched by a turn-around in index of industrial production (IIP) for March 2011. Mukherjee said that within the industrial sector, the manufacturing sector with a weight of almost 80 per cent grew 7.9 per cent. There is also a revival in the growth of Capital goods with the index growing 12.9 per cent after three months of negative growth, he said.

However, the FM cautioned that these weekly and monthly cycles of bad and good news must be treated without over reaction. “The good news that we have got this week both on the prices front and on industrial production must not be over-interpreted, just as we must not get overly pessimistic when the economy does badly during a week or month,” he said.

Kislay Kanth, senior director, Mape Securities said the IIP growth was higher than market expectations. He said this figure is less than last year, but is still good given that the last 4-5 months IIP growth rates were very volatile. The improved growth rates in manufacturing segment will have to sustain through next 3-4 months for things to become comfortable.

Chandrajit Banerjee, director general, CII, said that the chamber expected the momentum to pick up amid some softening of global commodity prices. However, the CII remains concerned that the steep rise in interest rates will have a negative impact on both consumer demand as well as investment activities.

Rajiv Kumar, director general, FICCI, said: “Unfortunately, the somewhat improved data do not indicate a rising trend in the manufacturing sector. Growth in the manufacturing sector is going to slowdown in the coming months because commercial banks have raised interest rates further, which will affect investments in the sector. Profitability of the manufacturing sector in the last quarter had fallen as a result of the steep rise in prices of commodities and raw materials.”

New Delhi, May 12
The financial year 2011-12 opened with 34.4 per cent year-on-year growth in exports to $23.9 billion in April, but "it is not going to be an easy summer for exporters," Commerce Secretary Rahul Khullar said today.

Imports grew at a lesser pace of 14.1 per cent to $32.8 billion, leaving a trade gap of $8.9 billion for April.

Merchandise shipments had increased by 44 per cent in March and the country's exports for 2010-11 fiscal aggregated $246 billion, showing a growth of 37.55 per cent.

A robust performance in April was led by engineering consignments which went up by 109 per cent to $6.8 billion. Export of petroleum products grew by 53 per cent to $4.3 billion and gems and jewellery by 39 per cent to $2.9 billion. Readymade garments clocked in an expansion of 12.7 per cent with consignments worth $1.1 billion.

However, a few sectors like iron ore, fruits and vegetables, marine products and tobacco showed a decline.

Khullar said shipments generally peak in the last quarter of a fiscal which explains moderation in April.

But, he said, uncertainty in Europe and not-too encouraging data about the US economy remain areas of concern. — PTI

Chandigarh, May 12
The Indian pharma industry hopes to gain big from impending patent expiries in the regulated market. Industry sources said patent for drugs worth $ 6-8 billion is expected to expire over 3-4 years, beginning later this year.

As these patents expire, penetration of generic medicines in regulated markets of Europe, US, Canada and Japan is expected to increase. This opens up a significant opportunity for supply of active pharmaceutical ingredients (APIs) to manufacturers of generic drugs.

New business avenues are also likely to be opened as there is increased outsourcing of bulk drugs by multinational pharma companies.

NR Munjal, vice-chairman, Ind Swift Laboratories, and president of Indian Drug Manufacturers Association, said the Indian pharmaceutical sector (valued at $10 billion) was expected to grow 60 per cent due to the opportunity.

“Drug makers in India and China will benefit the most. Since India is far ahead of China in its penetration in regulated markets, and has more approved facilities by the drug regulators in these regulated markets, India will get the maximum share. India has 77 approved facilities, while China has less than 20 such facilities,” he said.

He said that though bulk drug makers and the large pharma companies will benefit the most as they have already launched their drugs in the market; small drug makers will benefit too. “Contract manufacturing jobs will go to these small drug manufacturers,” he said.

He said API suppliers in Europe and US were facing increased pricing pressures due to the presence of low-cost providers in developing markets and backward integration by certain generic companies. Though China remains a dominant player in the global bulk drug industry, quality concerns reflected in product recalls due to contamination continue to hamper the ability of Chinese manufacturers to source bulk drugs to advanced markets. It is here that the Indian bulk drug manufacturers have an edge.

New Delhi, May 12
The French government today conferred its highest civilian award 'Knight of the National Order of the Legion of Honour' to Indian businessmen Bajaj Auto Chairman Rahul Bajaj and Bharat Forge Chairman and MD Baba Kalyani.

On behalf of the French President, Ambassador of France to India Jerome Bonnafont conferred the distinction to Bajaj and Kalyani for their contributions to the development of Indo-French cooperation in business.

Bajaj said: “The award is a great honour for the members of the Bajaj Group.” — PTI

New Delhi, May 12
The Central Bureau of Investigation today quizzed Essar group CEO Prashant Ruia in connection with its probe into the 2G Spectrum allocation scam as the agency prepares to question top honchos of a Dubai-based group.

Ruia, who arrived here in the morning, was grilled for nearly three hours by the sleuths who sought 'clarifications' about the company's relations with Loop Telecom, which is an alleged beneficiary of the 2G Spectrum scam in violation of clause of eight of the Unified Access License guidelines, official sources said.

The agency is likely to file another charge sheet in the alleged Rs 35,000-crore scam by mid-June in which Loop Telecom and other service providers may figure, the sources said.

An Essar group spokesperson said in a statement that they continue to cooperate with the investigation as they have done in the past. "Essar has always been in compliance with all the regulations and laws of the land," the spokesperson said.

The CBI has also called CEO of the Dubai-based Khaitan group for questioning and clarifying its position in connection with the company's alleged association with Loop Telecom, they said.

Ruia was called amid allegations that Loop Telecom acted as a front company for Essar which has nearly 33 per cent stake in Vodafone-Essar joint venture.

If the allegations were found to be true, it would make Loop Telecom ineligible to get telecom licences. The threshold of cross-holding is below 10 per cent.

The agency is probing the alleged linkage between Essar and Santa Trading Private Limit which floated the Loop Telecom and financial exchanges that allegedly took place between the two companies, the sources said.

It is also looking into alleged attempts of several Loop officials to get details of Letter Rogatory in a meeting with the Indian High Commissioner in Mauritius. — PTI

New Delhi, May 12
Asking SEBI to proceed with its probe into Sahara group's OFCD scheme, the Supreme Court today said investors may not have any knowledge about these products and might feel cheated like in the Harshad Mehta scam.

"We are of view that on the question of OFCD (Optionally Fully Convertible Debentures), it requires decision of (market regulator) SEBI. Let SEBI hear and pass an order," the court said while hearing a case related to OFCDs issued by two Sahara group firms.

A three-judge Bench headed by Chief Justice SH Kapadia also observed that investors were not aware of this investment scheme and later they might feel cheated as was the case with Harshad Mehta securities scam that took place in 1990s. However, the Bench said the order of SEBI would not be operational till the court gives further direction on it.

"The order would not apply... We want to see the order of SEBI on OFCD," the Bench added. — PTI

Gurgaon, May 12
There is widespread resentment among industrialists against the Haryana government’s new industrial policy and the HSIIDC’s Estate Management Procedures (EMP-2011). Hundreds of micro, small and medium enterprises (MSMEs) entrepreneurs of Gurgaon and nearby areas staged a dharna in front of the HSIIDC office here today. Representatives of different industrial associations participated.

Terming the new industrial policy and procedures “anti-MSME and “unlawful”, the protesters said certain provisions and procedures in the policy would “harm the growth of small enterprises in the state and perpetrate a regime of harassment by the HSIIDC”.

The protest was organised under the aegis of the Joint Forum of Gurgaon Industrial Associations, which includes the Gurgaon Industrial Association, Chamber of Industries of Udyog Vihar, Udyog Vihar Industries Association, Haryana Industries Association, Gurgaon Udyog Association, Laghu Udyog Bharti, Pace City Industrial Association, Industrial Development Association Sector 37, Udyog Vihar Phase VI Industrial Association and Roj-ka-Meo Industrial Association. As a mark of protest, black flags were put atop all industrial units and the industrial units observed a half-day bandh.

Similar protests were held at Manesar and other towns of Haryana, including Kundli, Rai, Barhi, Panipat, Karnal, Kurukshetra, Manakpur, Bahadurgarh and Rohtak.

“Industrial property was allotted by HSIIDC on freehold basis, but as per the new policy, conditions of freehold right have been restrained. Entrepreneurs are being forced to sign undertaking on a stamp paper declaring that provisions of EMP-2011 would be applicable and original agreement at the time of allotment would not apply anymore,” they alleged.

“If an allottee leases out his premises, he will be required to pay 50 per cent of rentals to the HSIIDC in case of any alleged default by the tenant. A system of complicated procedures for obtaining permissions has been introduced so that the HSIIDC can continue to harass entrepreneurs and extort money from them in the name of heavy penalties and interest. Properties including buildings constructed by entrepreneurs are being subjected to resumption for minor defaults,” they maintained.

BRIEFLY

SingTel Q4 net dips
Singapore: Singapore Telecommunications Limited (SingTel), which has a stake in Bharti Airtel, on Thursday posted a 2.3 per cent fall in net profit to 992 million Singapore dollars due to the loss incurred by Bharti Airtel and currency volatility. However, the board has proposed a final dividend of 9 Singapore cents and a special dividend of 10 Singapore cents per share. — PTI

PFC FPO fully subscribed
Mumbai: The follow-on public offer (FPO) of Power Finance Corporation (PFC) on Thursday got fully subscribed on the third day of its issue. The issue was subscribed 1.62 times, as it received bids for 37.16 crore shares as against 22.96 crore shares on offer, according to data available with the NSE. — PTI

Nirula’s outlet
Pathankot: Nirula’s on Wednesday opened its second restaurant here on the Pathankot-Jammu highway. The outlet was inaugurated by Samir Kuckreja, CEO and Managing Director, Nirula’s. — OC

PPR Group opens Ramada hotel
Jalandhar: The PPR Group on Wednesday announced the opening of Ramada hotel here. It would be the first hotel by the Ramada Group in Punjab. — TNS

Venus Remedies’ arthritis drug in July
Chandigarh: Venus Remedies on Thursday said it would commercially launch its new drug, ‘Trois’, for treatment of arthritis in June or July. The disease has become the ‘biggest epidemic’ in India with a $672 million market for rheumatoid arthritis drugs. — TNS

Sam Pitroda awarded
Chandigarh: ASam Pitroda, adviser to the Prime Minister on Public Information Infrastructure and Innovations, has been chosen for International Telecommuinication Union (ITU) award for 2011. — TNS

Phaneesh Murthy new Patni CEO
Bangalore: iGATE on Thursday announced the successful completion of Patni acquisition and appointment of Phaneesh Murthy as CEO of Patni. Consequently, Jeya Kumar has stepped down as the CEO of Patni. — PTI

RCom draws Rs 1,780 cr loan
New Delhi: Reliance Communications on Thursday said it has drawn a second tranche of Rs 1,780 crore ($400 million) from the Rs 8,700 crore ($1.93 billion) loan facility it secured from China Development Bank (CDB). — TNS

NIIT Q4 net up 53 pc
New Delhi: NIIT has announced that its net profit for the fourth quarter ended March, 2011, was at Rs 37.8 crore, up 53.04 per cent from Rs 24.7 crore in the corresponding quarter a year ago. — TNS