New Delhi, April 21
India's largest IT company, Tata Consultancy Services (TCS) has signed an agreement with Japanese major Mitsubishi Corporation to form a single IT services unit.

According to a company statement, the merger, in which TCS will hold 51% stake and Mitsubishi 49%, will create a new IT services company of significant scale in the Japanese market with an annual turnover of over $600 million.

"TCS Japan, IT Frontier Corporation (ITF) - Mitsubishi's 100% IT subsidiary - and Nippon TCS Solution Center (NTSC), to merge as a single new entity," TCS said. TCS will hold 51% in the merged entity, while Mitsubishi will have 49% stake and the merged entities would be operational from July 2014, it added.

Analysts said the deal will provide TCS a strong foothold in the Japanese market where Indian companies have struggled.

Ashish Chopra, IT analyst, Motilal Oswal Securities said, "Japan is the second largest market for IT services, and Indian players have struggled to gain a foothold in the region. In that regard, TCS's move opens up the region favourably for the company - an additional source of revenue over the long term".

ITF brings its long-standing relationships with Japanese corporations, talented workforce and competencies in industries such as retail, distribution and trading, TCS said.

This will compliment TCS's deep domain knowledge, technology expertise and strong execution track record, it added.

"This strategic transaction signifies our commitment to the Japanese market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in the Japanese market," TCS CEO and managing director N. Chandrasekaran said.

The company will provide tremendous additional value to clients in Japan, while employees will secure the advantages of building their careers in a global organisation, it added.

Chopra said the deal if closed by June 2014, will add $375 million incremental revenues. "It lends TCS an edge in the Japanese market with local manpower in the form of 1,600 full-time employees and 1,600 business associates, client references".

He said Mitsubishi is a $250 million client, and in addition, there are other Japanese clients in hi-tech, manufacturing, BFSI and retail verticals.

This strategic transaction signifies our commitment to the Japanese market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in the Japanese market —N Chandrasekaran, tcs managing director

The real estate industry has written to the Competition Commission of India (CCI) on high cement prices. Rohit Raj Modi, officiating president, Confederation of Real Estate Developers' Associations of India (CREDAI) NCR and executive director, Ashiana Homes, says the other big concern for the industry is retrospective cancellation of land allotments to developers which is eroding investor confidence.

Q: The real estate sector has been declining for the past few years. What are the reasons and the ways to revive it?

A: The reason lies in nature of the real estate sector. So, when the country was witnessing a robust growth, it benefitted and in turn contributed handsomely as it supports a number of ancillary services. But, when both external and internal reasons (inflation, fluctuating rupee, northward interest rates) hit the economy, dragging it downward, it started feeling the heat in some areas, while other areas like Delhi NCR kept defying the trend.

For revival, we need comprehensive and coordinated policy push from the Centre and states. On the one hand, inflation needs to be kept below 5%, on the other hand, a low interest rate regime and consistent funding for the sector is the need of the hour. Adding to that, we need laws and policies that are simple, consistent and well communicated.

Q: What are the issues that are of concern to the industry?

A: The prices of cement have been serious concern for the sector. We failed to understand the rationale for the steep hike of 75% (from Rs 188 per bag to Rs 333 per bag) in the past six months. This development has put enormous pressure on our costs.

In addition, various judgments from courts wherein allotment of land to the developers have been cancelled with retrospective effect, wherein the developer, investors, banks relied on the policy of the state government and made large investments and thereafter find themselves in a financial mess has been eroding confidence and will affect the investment climate.

Q: What are your views on the Supreme Court judgment in the Supertech case seeking towers to be demolished and money refunded to consumers?

A: It was an unfortunate incident. While we welcome the judgment in so far as the concerns of petitioners are concerned, it has equally caused pain to buyers of those two towers — Noida Authority Developer and real estate sector as the whole. Supertech has gone public with the announcement that they are ready to refund the money to the affected buyers as per the judgment of the buyers. Supertech and NOIDA authority are planning to move the Supreme Court, hence we need to wait for the decision of the apex court.

Q: Many of the real estate projects have got delayed thereby eroding the trust of the buyers. How do you assess the situation?

A: While we accept that there have been instances of delayed delivery, there is a need to equally emphasis the fact that a number of projects have been delivered on time too. The perception has been created that developers deliberately do that. Well, who, on the earth, would like to burden themselves with extra cost? There is a price attached to the delay and the developers pay for that. I, on behalf of the developers' community, can assure you that we need on time delivery of the project more than the buyers. The delays happen due to many unseen and unexpected factors which are out of our area of influence. We need more than 40 separate approvals from various ministries and departments of the state government.

Q: What is CREDAI doing to restore the credibility of the real estate industry?

A: As a voluntary association of over 9,000 developers, we have introduced a series of steps to instill discipline, accountability and transparency in the system. Our code of conduct applies to each member and from the platform of the Consumer Redressal Forum, we have successfully resolved over 90% complaints of buyers.

New Delhi, April 21
Cadbury India has changed its name to Mondelez India Foods Limited. The change in name of Cadbury is in line with the gradual changeover of the name of all subsidiaries of the $35 billion Mondelez International globally, the company said.

It said change in name of the company will have no impact on the names or packaging of its products such as Cadbury Dairy Milk, 5 Star, Gems, Bournville, Perk, Celebrations, Choclairs, Halls, Bournvita, Tang and Oreo and these will continue to be sold under the same brand names as before. From now onwards, the new name of the company will appear on the back of the products.

With operations in 165 countries, Mondelez is a world leader in biscuits, chocolates, gums, candies, coffee and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits, Cadbury, Cadbury Dairy Milk and Milka chocolate, among others.

Manu Anand, managing director of Mondelez India Foods Ltd, said, "With the change in name of the company to Mondelez India Foods Limited, we conclude the process of transition that began over two years ago. We are today the pre-eminent and most loved food company in India with leadership in fast-growing categories, strong route to market, robust innovation pipeline and world-class talent and facilities".

New Delhi, April 21
With an aim to more than double its market share in two years in India, smartphone maker HTC today announced global launch of its lowest priced smartphone Desire 210 for Rs 8,700 here.

"In the past 12 months or so we have been thinking about to come up with sub-Rs 10,000 product for Indian market ...if we are able to be succesful on that front it could be taken outside as well, in not just emerging market but sometime industrial economies as well," HTC president for global sales and CFO Chialin Chang said here. He said current market share of HTC is estimated to be around 6-7%.

At Rs 8,700 price point, the 4-inch HTC Desire 210 will see competition from mobile phones like Nokia Lumia 520, Nokia X, Samsung Galaxy S Duos.

Built on Android's Jelly Bean platform, the dual GSM SIM smartphone Desire 210 has 5 megapixel main camera and a VGA camera on the front. — PTI

Mumbai, April 21
The BSE benchmark Sensex today rose to its all-time high of 22,795.58 but settled the day a few points lower at 22,764.83 on hectic buying in blue-chip stocks L&T, ICICI Bank and SBI.

The 50-share Nifty of National Stock Exchange breached the crucial 6,800-mark to end the day at 6,817.65, a rise of 38.25 points or 0.56%. It set a fresh all-time high of 6,825.45 intra-day. — PTI

BRIEFLY

Reliance Life launches ‘Online Term’
Mumbai: Reliance Life Insurance Company on Monday launched 'Online Term', an online life cover plan at an affordable premium. The plan offers Rs 1 crore of life cover for as low as Rs 15 per day (for a 25 year-old healthy male). It also offers higher life protection up to the age of 75 years through a transparent and hassle-free online process and provides the convenience of medical check-ups, if any, at the customer's residence. — PTI

Tata Power rights issue oversubscribed
New Delhi: Tata Power on Monday said its Rs 2,000-crore rights issue has been oversubscribed by nearly two times. Tata Power had offered up to 33 crore equity shares at a price of Rs 60 per share for an amount aggregating to Rs 1,993.38 crore on a rights basis, which closed on April 15, to the existing shareholders. — PTI

Four cos line up rights issue worth Rs 800 cr
New Delhi: As many as four firms, including Lakshmi Vilas Bank and IL&FS Engineering and Construction Company have lined up rights issue worth more than Rs 800 crore. Mirc Electronics, which sells the Onida brand of TVs and drug firm Neuland Laboratories also plans to raise funds by issuing equity shares to existing shareholders. — PTI

L&T launches Emerging Businesses Fund
Mumbai: L&T Mutual Fund on Monday launched a new scheme 'L&T Emerging Businesses Fund', which is a two-year close-ended equity scheme. The new fund offer opens Tuesday and will close on May 6, 2014.— PTI

Aircel partners DigiVive to stream IPL on mobiles
New Delhi: Aircel has partnered DigiVive to offer Pepsi IPL streaming on mobile phones. Through this association, Aircel customers will be able to watch Pepsi IPL matches on their mobile anywhere, anytime at an affordable price, Aircel said on Monday. — PTI

Wipro shares tank nearly 7% on the BSE
Mumbai: Shares of software services exporter Wipro on Monday slumped nearly 7% after the company's revenue guidance came in below estimates. Wipro's stock ended 6.65% lower at Rs 546.60 on the BSE. During the day, the scrip tanked 7.63% to Rs 544. — PTI

RJio signs pact with ATC for mobile network
New Delhi: Telecom arm of Reliance Industries Limited, RJIL, on Monday signed an agreement with American Tower Corporation (ATC) for utilising the mobile towers for its telecom network. ATC has a portfolio of 11,000 towers in India. — PTI

Alstom bags 30 million euro contract from BHEL
New Delhi: French power equipment maker Alstom on Monday said it has bagged a 30 million euro contract from state-owned BHEL to supply parts and services for a thermal power plant in Odisha. Alstom will cooperate with BHEL in designing the boilers and supply identified pressure parts of the 660 MW supercritical boilers, along with windboxes. — PTI

Gold tumbles on stockists selling, global cues
New Delhi: Gold tumbled by Rs 210 to Rs 30,040 per 10 grams in the national capital on Monday on heavy stockists selling triggered by a weak global trend. Silver also dropped by Rs 800 to Rs 42,600 per kg on poor offtake by industrial units and coin makers. — PTI