Mumbai, June 16
Airbus has received an order worth $7.2 billion for 72 planes from GoAir, the latest in a series of Indian airlines scrambling to meet growing demand in Asia's third-largest economy.

The order for A320 planes brings GoAir's total order book with Airbus to $9.6 billion, Managing Director Jeh Wadia told reporters on Thursday.

Indian carriers are growing their fleets as demand booms in India, where an economy growing at nearly 9 per cent is spurring business travel and a burgeoning middle-class long accustomed to travelling by rail is now increasingly opting for air.

India's largest private carrier Jet Airways is also expected to place aircraft orders with Airbus at the Paris Air Show later this month, according to media reports.

Earlier this year, budget carrier IndiGo placed a $15.6 billion order with Airbus for 180 planes in what it called the biggest jet order in commercial aviation history.

And in November, rival SpiceJet agreed to buy 30 Nextgen turboprop aircraft from Canada's Bombardier Inc for as much as $915 million.

"In terms of aircraft, we see tremendous potential in India, which has barely six airlines with 350 aircraft catering to a billion people, compared with China's present 1,100 aircraft," Wadia said.

GoAir has ordered the "A320neo" planes - an upgraded version of Airbus' best-selling A320 150-seat workhorse. The deliveries will begin in 2015. — Reuters

Mumbai, June 16
Relaxing provisions for change in names by companies, market regulator SEBI today said any listed firm seeking to undertake such an exercise can do so provided that the amount invested in new projects associated with change of profile is at least 50 per cent of their assets.

As per the earlier rule, at least 50 per cent of the total revenue of such firms was required to have been from activities associated with the company's new name for a period of one year preceding the change.

"It is observed from the representations received from few companies and feedback received from the stock exchanges that the companies, where the gestation period of the business is usually longer and the revenue stream often delayed, find it difficult to comply with the aforesaid provision," SEBI said.

Based on the feedback, the SEBI has now added the new provision. — PTI

New Delhi, June 16
Tata Steel today said it has sold its 26.27 per cent stake in Australian coal miner Riversdale to global mining major Rio Tinto for AUD 1.06 billion ($1.11 billion).

"The sale consideration of approx AUD 1,060 million (about Rs 5,074 crore) represents around 100 per cent appreciation of value in less than four years since the first investment," the home-grown steel major said in a statement.

The Anglo-Dutch miner Rio Tinto holds 73.2 per cent stake in Riversdale, which has an estimated 13 billion tonne reserves in its two projects in Mozambique - Benga and Zambeze.

Riversdale has been a takeover target for Rio Tinto since December 2010 when it put in a bid of AUD 16 per share to acquire a majority stake in the Australian mining firm.

Tata Steel, along with Brazilian steel maker CSN, has been continuously opposing Rio's buying stake in Riversdale, maintaining that it was more interested in getting coal from Riversdale to feed its European operations than making a quick buck.

CSN backed out from its earlier stand in April and sold its entire 19.9 per cent stake to Rio Tinto.

"As a part of the ongoing review of the strategic investments of the company, Tata Steel Board have considered the recent announcement of Rio Tinto Jersey Holdings 2010 Ltd to delist Riversdale following its increased shareholding to 73.2 per cent in Riversdale.

"Tata Steel has decided that it would not want to hold its equity investment in Riversdale Mining, which is proposed to be delisted, without any joint venture agreement with the majority shareholder in unlisted Riversdale," Tata Steel said. — PTI

Chandigarh, June 16
With globalisation, almost everything connected with doing business in India has changed. What has however, failed to keep pace with market forces is the way companies hire and retain talent.

Contract staffing is emerging as the next big thing in how business conducts itself in India , especially in the IT and ITeS sector.

Sensing an opportunity, Mumbai-based start-up, StaffonContract, has ventured into the space. “Due to inability to quickly hire skilled staff, IT & ITES companies in India will have to look for alternative methods of hiring and that is Contract Staffing,” said Chetan Indap, founder & CEO .

Essentially, a platform where the staff supplier and the potential employer meet, the venture is based on subscription fee-based model.

By planned contracting, IT companies can manage costs optimally and achieve higher margins . The concept was a success in the West and it’s only a mindset issue before the concept catches on here, Chetan said.

On how his firm is different from traditional head-hunting firms, the CEO said that StaffonContract was only for businesses and was a B2B firm.

“An individual cannot upload a CV on our portal, it’s for businesses to key in their requirements and we respond to that and get IT sub-contracting firms to react accordingly ,” he said. On the challenges, Chetan says people need to be comfortable with the idea of a job on contract.

“I have received enquiries about our services from all over India . Companies from West Asia, especially Dubai , have expressed a lot of interest. People are realising that hiring staff on contract is a value-based proposition,” Chetan adds.

The company, started in January, already has five clients and has earned Rs 5 lakh in revenues. By mid 2012, it expects revenues of at least Rs 40 lakh.

Seed funding for the venture came from two individual investors. The founder is now looking for angel investors to come forward. Plans for infusion for reportedly $500,000 are under discussion.

New Delhi, June 16
Toyota Kirloskar Motors (TKM) today launched a new variant of its premium sedan Corolla Altis in both petrol and diesel options, priced between Rs 10.53 lakh and Rs 14.77 lakh (ex showroom Delhi).

Mumbai, June 16
Rate sensitive bank stocks showed mixed response to the increase in key policy rates today by the RBI, as leading lender SBI gained over 1 per cent, while ICICI Bank ended the day with losses on the Bombay Stock Exchange’s Sensitive Index.

Shares of the country's biggest lender SBI ended at Rs 2,205.75, up 1.09 per cent from the previous close on the BSE.

In contrast top lender ICICI Bank shed 0.44 per cent to settle at Rs 1,028.50, while HDFC Bank fell by 1.24 per cent, Bank of India dipped by 1.25 per cent and Canara Bank 0.63 per cent.

However, Kotak Mahindra Bank ended with 0.32 per cent gains, while IDBI Bank settled with 0.12 per cent surge.

With the mix response at the banking counters, the bankex index finished the day with 0.55 per cent fall at 12,076.68.

"There was a minor impact on interest sensitive stocks," Motilal Oswal Securities Associate VP Senior Analyst - Technical – Equities Parag Doctor said. — PTI

Kathmandu, June 16
Indian tobacco major ITC has declared an indefinite lockout at its garments factory in Nepal - producing its John Players and Springwood brands of menswear for export to India, Bangladesh and other countries - after factory workers went on the warpath.

The state-of-the-art factory in Biratnagar town, whose jute mills were the cradle of the trade union movement in Nepal, was shut down indefinitely on Wednesday after workers held 42 company employees captive for more than 24 hours and clashed with police when the latter sought to rescue the victims.

Violence erupted after workers staged demonstrations for almost a week over a pay-cut.

In April, the workers had called a strike and the authorities, following a new industrial act that authorises "no work, no pay", decided to dock salaries for the duration of the protest they termed illegal.

The decision triggered the rampage on Tuesday with workers locking up 42 employees and refusing to release them. The factory employs nearly 600 people, the majority being women.

In 1986, attracted by the cheap labour in Nepal and the trade concessions it enjoyed, ITC formed a joint venture, Surya Nepal Private Limited (SNPL), in which the Indian company holds 69 per cent stake while the balance shares are owned by 20 Nepali individuals and corporates, including the deposed royal family of Nepal, and British American Tobacco (Investment) Limited.

From tobacco, the joint venture diversified into apparel in 2004.— PTI