Abu Dhabi Investment Authority to invest $50 billion in India, says Suresh Prabhu

Abu Dhabi Investment Authority to invest $50 billion in India, says Suresh Prabhu

Union minister for commerce and industry Suresh Prabhu on Friday said that the Abu Dhabi Investment Authority, a sovereign wealth fund owned by Emirate of Abu Dhabi, will invest USD 50 billion in India, especially into infrastructure and food processing capacity, according to a Times of India report.

Speaking at the inaugural function of the annual venture capital summit in Panaji, Prabhu announced that the agreement has been signed on Thursday. Abu Dhabi-based sovereign wealth fund is interested in investing in India in a big way, he added.

According to the agency, Prabhu had also asked the International Finance Corporation to help attract other sovereign funds and pension funds to invest into India.

The Commerce Minister said that India is a top investment destination in the world today. Twenty states have their Startup policy. Suresh Prabhu stated that infrastructure is the sector where India is developing at a faster rate and this is creating lots of opportunities for investors.

He further remarked that India is one country where almost every citizen is an entrepreneur and where 600 million farmers and retailers take enormous risks. The fragmented Indian agricultural holdings provides great opportunity for startups to bridge the productivity gap by providing solutions using cutting edge technology like AI and drones.

Suresh Prabhu also declared Goa as the permanent venue for the Annual Global Venture Capital Summit. The Summit will take place in Goa on the first Friday of December every year.

Edited by Chitranjan Kumar

source =.”businesstoday”

ESR-Allianz Real Estate JV to invest $1 billion in India

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing. Photo: Bloomberg

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing. Photo: Bloomberg

Bengaluru: Asia Pacific-focused logistics developer e-Shang Redwood (ESR) has entered into a strategic partnership with global asset manager Allianz Real Estate to invest around $1 billion, including debt, into India’s rapidly growing logistics and industrial property market.

The joint venture will focus on developing large-scale logistics and industrial facilities in eight key cities—Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru and Hyderabad—with an opportunistic approach to investments in other markets in India, the companies announced on Friday.

In addition, the investment programme will also identify opportunities to acquire assets in these cities.

“We are delighted to partner with Allianz, an existing strategic partner of ESR in other geographies. This JV with a leading institutional investor who has deep experience in Asia marks a key milestone in our regional growth plan,” Charles de Portes, co-founder and president of ESR, said in a statement.

The proposed investment programme will start with an immediate equity commitment of $225 million, to be funded on a 50:50 basis by Allianz and ESR. This would subsequently be converted into a $1 billion assets under management platform. The programme’s strategy is to leverage structural trends in tier one and selective tier two cities to build a long term, cash flow-positive logistics portfolio by acquiring a blend of develop-to-core, forward purchases, and stabilized or stabilizing assets.

On Thursday, ESR kicked off its first project in India, an industrial and logistics park in Chakan MIDC (Maharashtra Industrial Development Corporation), Pune.

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing, formed by the merger of e-Shang Cayman Ltd and Redwood Group Asia Pte. Ltd in 2016. Based out of Hong Kong and Singapore, it owns and manages around 7.3 million sq. m of assets in China, Japan, Singapore and South Korea.

Alongside the growth in the e-commerce sector in the country, the increasing internet and smartphone penetration, growing acceptance of online payments and favourable demographics will continue to propel e-commerce growth, spurring demand for modern logistics facilities, ESR said.

“India’s logistics sector is coming of age. The sector is benefitting from a lot of favourable trends, such as stellar consumption patterns, continued infrastructure spending, increasing transparency and the nation-wide implementation of a uniform indirect tax system,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

In India, the warehousing and logistics sector attracted investments of more than a billion dollars in 2017 and is witnessing a huge interest in building businesses around steady rental income. Canada’s Brookfield Asset Management Inc. is planning to enter the industrial real estate space, while Sydney’s LOGOS Group and Assetz Property Group from Singapore partnered in 2017 and are scouting for land. Embassy Industrial Parks Pvt. Ltd, Ascendas-Singbridge Group and Mahindra Lifespace Developers Ltd also plan to build industrial parks and clusters.

[“source=cnbc”]

Auto industry braces for impact as India begins shift to electric vehicles

The emergence of electric vehicles means a new ecosystem will have to be built and a lot of component manufacturers who make engine parts, pistons, rubber tubes, etc, will have to shut shop or adapt. Photo: Ramesh Pathania/Mint

The emergence of electric vehicles means a new ecosystem will have to be built and a lot of component manufacturers who make engine parts, pistons, rubber tubes, etc, will have to shut shop or adapt. Photo: Ramesh Pathania/Mint

New Delhi: Abhay Firodia is not perturbed by the possible impact that the advent of electric vehicles may have on the ecosystem for automobiles.

“Bank employees went on strike when they were introduced to computers,” the 73-year-old chairman of Force Motors Ltd, Pune-based light commercial vehicle manufacturer, and president of the Society of Indian Automobile Manufacturers, or Siam, told Mint last year when asked if the industry has assessed the impact of such a gigantic shift towards electric vehicles.

The government plans to switch to electric vehicles by 2030, which has now been described by road transport minister Nitin Gadkari as unofficial.

Firodia may have been unconcerned about the changes that the industry may have to undergo but the Automotive Component Manufacturers Association of India (Acma), the industry lobby that represents companies who do business worth Rs1.45 trillion, rushed to NITI Aayog in December. The idea was to express concern to the government that a sudden move to large-scale adoption of electric vehicles (EVs) could lead to massive job losses.

“Suppliers are underestimating the speed of change, while being 7-8 years behind global peers on tech… leading to a significant impending local threat from global peers,” Acma told NITI Aayog in presentation reviewed by Mint.

“With industry investments and jobs at stake, the country cannot afford to lose the domestic component industry in her quest for EVs,” Acma said, suggesting that millions of jobs could be at stake if there is a sudden moves towards electric vehicles.

It was a desperate plea, especially given the fact that internal combustion engines (ICE), which are used in most cars, have more than 2,000 moving parts, while an electric vehicle has about 20, resulting in fewer breakdowns. Among the parts that will see demand dry up once electric vehicles dominate in India, are engines, transmission, aluminium castings, cylinder blocks and cast iron. These will give way to an electric motor run by batteries.

The Acma presentation said the ICE powertrain contributes to over 60% of the employment generation in the auto component sector, and that a switch to 100% electric could impact up to 5.6 million jobs by 2025-26.

Automobile component manufacturers are known as the bedrock of the industry across the globe.

Siam in concurrence with the NITI Aayog, has proposed that 40% of vehicles in India would be shifted to electric while vehicles used for public transport would be 100% shifted to electric by 2030.

The emergence of electric vehicles means a new ecosystem will have to be built and a lot of component manufacturers who make engine parts, pistons, rubber tubes, etc, will have to shut shop or adapt.

According to Vinnie Mehta, director general, ACMA, the government should come up with a technology-agnostic road map for the development of sustainable mobility solutions for the future.

“As of now there is uncertainty among component manufacturers as to how their business will be impacted with the advent of electric vehicles. A coherent policy framework is the need of the hour,” Mehta said.

The long-term investment in the automobile component industry means a period of five years and some manufacturers of rubber tubes, air filters and pistons are in a quandary over whether to go in for improving their manufacturing capacities or not.

“People in the industry are definitely apprehensive of investing more since there is no clear road map. Though by 2030 the ICE engines would also substantially grow, the focus of the car maker would change to EVs. It will be a game changer in terms of technology, so if you are making an engine or its spare parts now then you’ve got to be feeling threatened for the long-term future,” said a top executive of a major component manufacturing company.

But some are ready for the challenge.

Mahindra Group’s auto component arm Mahindra CIE Automotive Ltd “is prepared for the EV drive and will continue to watch the trend,” according to its chairman Hemant Luthra.

Almost 9% of Mahindra CIE’s components in India go into ICEs, while the global share is 19%.

“There has been an internal realization that these shares must be reduced,” said Luthra, adding that the government’s announcement has alerted the firm to channel research and development (R&D) efforts towards EVs.

The long-term investment in the automobile component industry means a period of five years and some manufacturers of rubber tubes, air filters and pistons are in a quandary over whether to go in for improving their manufacturing capacities or not.

“It has also made us sensitive to the fact that our acquisitions should not be overly dependent on IC Engines,” he added.

The Mumbai-based automobile manufacturer is a “strong supporter of electrification, and has the engineering talent and R&D capability to design EV components,” according to Luthra. “Not much capacity addition is required since existing machining systems can address EV requirements; besides, it doesn’t make sense to put up a production line solely for EVs, given the low volumes,” he added.

Manav Kapur, executive director Steelbird International Ltd, New Delhi-based rubber and filter component manufacturer, thinks that the auto component industry is headed for total disruption with the impending changeover.

“With the reduced complexity, a very limited number of components and low maintenance cost of the EVs, the number of jobs lost could be as high as 80% at the auto components manufacturers and automotive workshops level,” said Kapur.

Analysts say a lot of the apprehensions are unfounded because the demand for IC engine-run vehicles will grow in the next decade-and-a-half despite a shift to electric vehicles. In order to cater to the demand, component manufacturers will have to invest in their existing business and increase capacity.

For example Maruti Suzuki has told its vendors to increase their respective capacities in Gujarat in the near term since the company is looking at a target of selling 2.5 million vehicles by 2025. In that case, the component manufacturers will have to invest more.

Anurag Mehrotra, managing director, Ford India Pvt. Ltd, said that full electrification will not happen in the near future and that IC engines are going to be in the play. Besides, there will be export opportunities for component manufacturers. In the last twelve to eighteen months, there has been some aggressive positioning by Indian automotive companies for exports.

A senior industry executive said the automobile industry, unlike the electronics manufacturing industry, has not re-invented itself in the past two decades, which is why the prospects of disruption is making it jittery.

For some manufacturers, the emergence of electric vehicles as a category will provide new avenues where they can explore new opportunities.

According to Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group, a Noida-based auto component manufacturer, whether it is the core business or readying for technology- driven innovations like connected cars, electrification of vehicles or light weighting, the concentration is on providing solutions that customers need.

“Towards this, there is a three-pronged approach—to do things within the group, to join hands with partners through joint ventures or explore acquisitions, all of them leading back to the philosophy of providing solutions when the customer needs it,” added Sehgal.

Indian component manufacturers have to collaborate with companies who have the requisite technologies and embrace them, or run the risk of losing their turf, especially to Chinese companies, according to the ACMA presentation to NITI Aayog.

[“Source-ndtv”]

Could this be Suzuki’s next big bike to come to India?

Suzuki V-Strom 650XT

Among the unveiling of the Burgman 150, Intruder Fi, GSX-S 750 and the other big bikes at the Suzuki pavilion, there stood a very interesting bike. It was the Suzuki V-Strom 650 XT. Now, Suzuki does sell the larger V-Strom 1000 in India but they chose to showcase the mid-size ADV here. This could be Suzuki planning to get it here as they do not have a contender in the midsize ADV segment, which currently has just the Kawasaki Versys 650. We spoke to Suzuki officials and they did indicate a plan to get it here in CKD trim. They are currently working on the feasibility of sharing their Hayabusa production line, which will now also assemble the GSX-S750. Here’s what you need to know about the V-Strom.

Design

Suzuki V-Strom 650XT

as is the case with the Kawasaki rival, the Suzuki V-Strom 650’s design is also based on its elder sibling, the V-Strom 1000. It looks purposeful with the front beak neatly integrated below the headlamp and a large manually adjustable windscreen. Most of the plastics remain at the front while the rear has a minimalistic appearance. It also gets mounting points for luggage panniers and a top box. Despite the looks, the V-Strom 650 is more compact than its 1000cc cousin. Fuel tank capacity is 20 litres.

Suzuki V-Strom 650XT

It gets a multifunction instrument cluster with an analogue tachometer and two digital screens that display a host of information. The XT version is the more off-road-oriented one, with spoked wheels and dual-purpose tyres, knuckle guards and engine guards.

Engine

Suzuki V-Strom 650XT

At the heart sits a 650cc V-twin that was recently updated to Euro IV specs. It features better low-end and midrange torque spread. The exhaust unit is a new one and has been narrowed down to make space for panniers. The motor makes 70PS at 8800rpm and 62Nm of torque at 6500rpm. It gets Suzuki’s low rpm assist which makes for smoother pick up from idling speeds. New is traction control lifted off the V-Strom 1000. It gets 3 modes and can be completely switched off if desired.

Underpinnings

Suzuki V-Strom 650XT

The ADV uses a twin spar frame that has been strengthened to take on two riders and their luggage with ease. The seat height is 835mm but riders should not have an issue getting their feet to the ground owing to the narrow profile. Suspension setup is fairly simple: preload-adjustable 43mm front forks and rear monoshock adjustable for preload and damping.

Suzuki V-Strom 650XT

The XT version gets 19-inch front and 17-inch rear wheels wrapped in dual-purpose Bridgestone Battlax tubeless tyres. Braking is via twin 310mm discs and a single 260mm rear disc. It gets ABS as standard.

Verdict

Suzuki V-Strom 650XT

If Suzuki plans to assemble the V-Strom 650 XT here, they could undercut the Versys 650 in terms of pricing. The V-Strom 650 XT would prove more capable in the rough stuff thanks to its tyre setup and more accessible low-end torque courtesy the V-twin motor. Now, if all goes well, we could be looking at this bike launching here by the end of this year or early next year. Stay tuned for more info.

[“Source-thehansindia”]

Hyundai India commits Rs 7,000-crore fresh investment in Tamil Nadu

Hyundai India commits Rs 7,000-crore fresh investment in Tamil Nadu

By: FE Bureau | Published: November 13, 2018 1:02 AM

Hyundai Motor India Limited (HMIL) will be making an investment of Rs 7,000 crore at its Chennai plant — for increasing the production capacity by 100,000 units per annum as well making 10 new models between now and 2025, including electric vehicles.

The statement said the company has promised to increase its production capacity by another 100,000 units, including 50,000 through CKD format and another 50,000 through CBU format.

Hyundai Motor India Limited (HMIL) will be making an investment of Rs 7,000 crore at its Chennai plant — for increasing the production capacity by 100,000 units per annum as well making 10 new models between now and 2025, including electric vehicles.
Senior officials of the company, including managing director and CEO YK Koo, BC Datta, vice-president, corporate affairs and N Ramesh, assistant vice-president, finance, met the chief minister Edappadi K Palaniswami at the Secretariat on Monday and informed him of the company’s fresh investment programmes and future plans, said an official statement from the state secretariat.

The statement said the company has promised to increase its production capacity by another 100,000 units, including 50,000 through CKD format and another 50,000 through CBU format. It has sought various incentives as offered by the state government during its earlier expansions.
Hyundai Motor also promised to Palaniswami that it will produce more than 10 models within 2025, including electric vehicles on the CKD format in the first stage and later will start manufacturing electric vehicles in India over the next 3 years.

This fresh Rs 7,000 crore investments is meant for increased production capacity, new models and powertrain altogether. It is expected to sign an MoU with the state government during the forthcoming Global Investors Meet to be held in January.
Quoting BC Datta, vice-president, HMIL, the statement said senior officials met Palaniswami to express the company’s proposed investment plans. The investments include expanding the present installed capacity from 700,000 units per annum to 800,000 units per annum. This include 50,000 units under CBU and another 50,000 units under CKD format to meet the export obligations of a few Asian and Southeast Asian countries.

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[“source=forbes]