The company plans to invest up to Rs. 100 Cr on cold storage business by setting up 10 cold storage units across the state. The cold storage units will come primarily in the areas, where vegetables and fruits harvesting is high, Rao said.

“The company is ready to invest Rs.100 crore on cold storage units. We will setup 10 cold storage units in suitable places in Andhra Pradesh in next two years,” the repor said quoting Rao.

Apart from the cold storage business, The company plans to invest another Rs.100 Cr on green house facility, which can be spread in 25 acres.

We have been tied up with an Israel firm Netaphim to develop this facility on turnkey basis.

“First phase of production in this facility would be started in couple of months,” he said.

The company is in the process of setting up a subsidiary to look after these two businesses.

For the Green House Project, Kaveri Seeds already acquired 250 acres of land near Shameerpet, 45 km away from Hyderabad.

The company plans to go for vegetables and fruits harvesting in this green house project applying modern technology, mainly for European exports.

IDFC Ventures may buy stake

Private Equity firm, IDFC Ventures is believed to be in talks with Kaveri Seeds to take a stake in the newly incorporated arm.

‘We will raise funds up to 25%  from internal accruals, 25% from banks as debt and another 50% from PE companies to meet our requirement. Couple of PE firms have shown their interest to take a share in our new subsidiary, where we can dilute upto 40% stake’ Mr. Rao has said, without mentioning IDFC.

At present, IDFC has 8.30% stake in Kaveri Seeds and promoter group holds 62.14% in the company.

Kaveri Seeds, with a significant presence in seed industry is planning to introduce new paddy, wheat, Bt cotton and vegetable seed varieties into the market this year.

Contributed by R.Reddy

This alliance establishes a preferred relationship between ICICI Bank and Harley-Davidson India in the areas of consumer financing, dealer financing and banking services to Harley-Davidson India.

ICICI will offer finance options for Harley-Davidson customers starting at 11% r.o.i. for a period of up to five years, with a starting EMI of Rs. 12,845/- per month only for a 2010 XL883 Low Sportster. Customers can also calculate EMIs for other models via an EMI calculator at the Harley-Davidson India website: www.harley-davidson.in
Harley-Davidson Motor Company is the US based global leader in cruising and touring motorcycles and ranks as one of the strongest brands in the world, with complete line of motorcycles, accessories and general merchandise in more than 70 countries. For more information, visit Harley-Davidson India’s web site at www.harley-davidson.in.

An AMFI certified IFA with a minimum of a year’s experience can use the online facility by paying the nominal application and security fees.

On becoming a member, the IFA enjoys several benefits: expenses are significantly reduced; he has complete ownership of his customers; he can provide to his customers several value added services like portfolio tracker, SMS alerts, various non-equity financial products.

One of the other important benefits that an IFA can provide to his customers is the ICICIdirect professional advisory on mutual funds. This advisory tracks various schemes, rates them as well as recommends a buy/sell/hold strategy.

ICICIdirect, with close to 2 million customers, is a market leader in online and offline financial product distribution. It is among top 5 Mutual Fund distributors in the country, offering more than 2000 Mutual Fund schemes and executing 0.15 million online transactions/month.

The company was also among the first distributors to revise its commissions on mutual funds, post Securities Exchange Board of India’s directive on removal of entry load from August 1, 2009. 

ICICIdirect has witnessed a growth of almost 50% q-on-q in the mutual fund segment.

Business Highlights FY09:
o         Overall revenues at Rs. 69.4 billion ($1.4 billion) in FY09 as against Rs. 50.0 billion ($983 million) in FY08, representing a growth of 39%.
o            The growth was majorly driven by the successful launch of the authorized generic version of GlaxoSmithKline’s Imitrex® (generic version: sumatriptan succinate), in late November 2008.
o            Excluding revenues from Sumatriptan, the YoY growth is at 24%, driven by the key markets of North America and Russia.
o         Operating income is at Rs. 11.2 billion ($220 million) in FY09 as against Rs. 5.4 billion ($107 million) in FY08 after adjusting for non cash impairment of intangibles and goodwill.
o         EBITDA at Rs. 14.5 billion ($285 million) in FY09 as against Rs. 9.7 billion ($190 million) in FY08, representing a growth of 50%, higher than the sales growth of 39%.
o         Revenues from Global Generics business at Rs. 49.8 billion ($979 million) in FY09 as against Rs. 33.0 billion ($649 million) in FY08. YoY growth of 51% driven by sumatriptan and key markets of North America and Russia.
o            Excluding revenues from Sumatriptan, the growth of 58% in North America was driven by volume growth in existing products, acquisition of the Shreveport facility and the benefit of rupee depreciation against dollar.
o            Revenue growth of 43% in Russia driven by key brands of Omez, Nise, Ketorol, Cetrine and Bion.
o         Revenues from Pharmaceutical Services & Active Ingredients (PSAI) increase by 13% to Rs. 18.8 billion ($369 million) in FY09 as against Rs. 16.6 billion ($327 million) in FY08.
o         During the year, the company launched 116 new generic products, filed 110 new generic product registrations and filed 55 DMFs globally.
Segmental Analysis
Global Generics
o         Revenues from Global Generics business at Rs. 49.8 billion ($979 million) in FY09 as against Rs. 33.0 billion ($649 million) in FY08. YoY growth of 51% driven by launch of sumatriptan and the key markets of North America and Russia.
o         Revenues from North America at Rs. 19.8 billion ($390 million) in FY09 as against Rs. 8.0 billion ($158 million) in FY08.
o            Excluding revenues from Sumatriptan, the growth of 58% in North America was driven by high volume growth across existing Top products and acquisition of Shreveport facility.
o            Revenue from Shreveport facility at Rs. 1.7 billion ($33 million) in FY09.
o            16 new products launched in FY09.
o            During the year, the Company filed 20 ANDAs taking the total filings to 144. Total of 69 ANDAs pending at the USFDA addressing innovator sales of $46 billion as per IMS December 2008.
o         Revenues from Europe at Rs. 11.9 billion ($234 million) in FY09 as against Rs. 10.2 billion ($201 million) in FY08, representing a growth of 16%.
o            Revenues from betapharm increase by 20% to Rs. 9.9 billion ($194 million) in FY09 from Rs. 8.2 billion ($161 million) in FY08. This increase was on account of :
o         Volume growth in existing products
o           betapharm volume growth of 16.5% as against market volume growth of 3.2%.
(Source: NVI Report Apr-March 2009)
o         One off seasonal vaccine sales in Q2 FY09
o            Revenues from Rest of Europe remain flat at Rs. 1.9 billion ($39 million) in FY09.
o            During the year, the company launched 25 new products and filed 11 dossiers across Europe.
o         Revenues from Russia & Other CIS markets at Rs. 7.6 billion ($150 million) in FY09 as against Rs. 5.5 billion ($109 million) in FY08, representing a growth of 38%.
o            Revenues in Russia increase to Rs. 5.8 billion ($114 million) in FY09 as against Rs. 4.1 billion ($80 million) in FY08. YoY growth of 43% driven by key brands of Omez, Nise, Ketorol, Cetrine and Bion.
o      Dr. Reddy’s volume growth at 11.2% as against the industry volume degrowth of 0.2%.

(Source: Pharmexpert MAT Mar 09)
o      Combined revenues from OTC & Hospital segment contribute 27% to total revenues.
o            Revenues in Other CIS markets increase to Rs. 1.8 billion ($36 million) in FY09 as against Rs. 1.5 billion ($29 million) in FY08. YoY growth of 25%.
o         Revenues in India increase to Rs. 8.5 billion ($167 million) in FY09 from Rs. 8.1 billion ($158 million), representing a growth of 5%.
o            The sub-industry growth in India is on account of delay in launch of new products and temporary decline due to change in our supply chain model to a replenishment based model.
o            36 new products launched during the year.
o            New products launched in the last 36 months contribute 14% to total revenues in FY09.
Pharmaceutical Services and Active Ingredients
o         Revenues from this segment increase to Rs. 18.8 billion ($369 million) in FY09 as against Rs. 16.6 billion ($327 million) in FY08; YoY growth of 13% driven by growth in North America and RoW markets as well as benefit by depreciation of rupee against the dollar.
o            Revenue from the business & facility acquired from Dow Pharma at Rs. 1.0 billion ($20 million) in FY09.
o            During the year, 55 DMFs were filed globally, with 21 in US, 19 in Europe, 5 in Canada & 10 in RoW. The cumulative DMF filings till date is 351.

Income Statement Highlights:
o         Gross profit increase by 44% to Rs. 36.5 billion ($718 million) in FY09 as against Rs. 25.4 billion ($499 million) in FY08. Gross profit margins on total revenues at 53% as against 51% in FY08, largely driven by attractive margins on sumatriptan.
o         Selling, General & Administration (SG&A) expenses increase to Rs. 21.0 billion ($413 million) in FY09 from Rs. 16.8 billion ($331 million) in FY08.
o            SG&A expenses as a % to sales is at 30% in FY09 as against 34% in FY08. The absolute increase is in line with a higher sales growth and coupled with a higher impact of currency on expenses outside India; however it was offset by control measures to optimize spending on expenses such as travel, General & Administration expenses and others.
o         Other operating expenses of Rs. 253 million in FY09 includes Rs. 921 million as damages on account of the German court upholding the validity of the olanzapine patent.
o         R&D investments at 6% of total revenues in FY09 as against 7% in FY08. YoY growth of 14%.
o         Finance costs (net) are at Rs. 1.2 billion in FY09 as against Finance income (net) at Rs. 521 million in FY08. The increase is mainly on account of :
o            Net forex loss of Rs. 634 million in FY09 as against net forex gain of Rs. 739 million in FY08.
o            Net interest expense of Rs. 687 million in FY09 as against net interest expense of Rs. 329 million in FY08.
o         PAT adjusted for one time exceptions is at Rs. 8.5 billion ($167 million) as against Rs. 4.5 billion ($88 million) in FY08. YoY growth of 89%.
o         Adjusted EPS of Rs. 50.3 ($1.0) in FY09 as against adjusted EPS of Rs. 26.6 ($0.5), representing a growth of 89%.
o         Capital expenditure for FY09 is at Rs. 4.4 billion ($87 million).

Q4 FY09 Business Highlights
o         Overall revenues at Rs. 19.8 billion ($390 million) in Q4 FY09 as against Rs. 13.2 billion ($261 million) in Q4 FY08, representing a growth of 50%.
o            The growth was majorly driven by the Sumatriptan.
o            Excluding revenues from Sumatriptan, the YoY growth is at 23%.
o         Operating income at Rs. 4.6 billion ($90 million) in Q4 FY09 as against Rs. 1.4 billion ($28 million) in Q4 FY08 after adjusting for non cash impairment.
o         EBITDA at Rs. 5.5 billion ($108 million) in Q4 FY09 as against Rs. 2.6 billion ($51 million) in Q4 FY08, representing a growth of 113%.
o         Revenues from Global Generics business at Rs. 14.7 billion ($288 million) in Q4 FY09 as against Rs. 8.7 billion ($172 million) in Q4 FY08. YoY growth of 68% driven by sumatriptan and key markets of North America and Russia.
o            Excluding revenues from Sumatriptan, the growth of 44% in North America was driven by new product launches like Divalproex, Levetiracetam and acquisition of the Shreveport facility.
o            Revenue growth of 88% in Russia driven by key brands.
o         Revenues from Pharmaceutical Services & Active Ingredients (PSAI) increase by 11% to Rs. 4.9 billion ($96 million) in Q4 FY09 as against Rs. 4.4 billion ($86 million) in Q4 FY08.
Income Statement Highlights:
o         Gross profit increase by 53% to Rs. 10.8 billion ($212 million) in Q4 FY09 as against Rs. 7.0 billion ($138 million) in Q4 FY08. Gross profit margins on total revenues at 54% as against 53% in FY08, driven by attractive margins on sumatriptan.
o         Selling, General & Administration (SG&A) expenses increase to Rs. 5.3 billion ($104 million) (27% of revenues) in Q4 FY09 from Rs. 4.7 billion ($93 million) in Q4 FY08 (36% of revenues).
o            The growth of 12% was well lower than the sales growth of 50%. This reduction of SG&A as a % to sales is largely due to the close monitoring of costs across the company.
o         R&D expenses at 6% of total revenues in Q4 FY09 as against 8% in Q4 FY08.
o         Finance costs (net) are at Rs. 82 million ($2 million) in Q4 FY09 as against Finance income (net) at Rs. 38 million ($1 million) in Q4 FY08. The increase is mainly on account of :
o            Net forex loss of Rs. 21 million in Q4 FY09 as against net forex gain of Rs. 93 million in Q4 FY08.
o            Net interest expense of Rs. 71 million in Q4 FY09 as against Rs. 126 million in Q4 FY08.
o         PAT adjusted for one time exceptions is at Rs. 3.3 billion ($64 million) as against Rs. 1.1 billion ($22 million) in FY08.

Source: Press Release

Mr. Parekh said that “The Board today approved the process to be followed for inviting a Strategic Investor and decided to seek regulatory approvals early next week. Upon receiving these clearances, the Board would announce the process to be observed”.

 
Taking note of this, Mr. Kiran Karnik, Chairman of the Board commented “The Board is satisfied with the progress of the company’s stabilization program and appreciated the sustained efforts of Satyamites that has helped the company’s revival on a fast track mode.”
 
Added Mr. AS Murty, Chief Executive Officer, “The indomitable spirit of Satyamites has helped us to win new Purchase orders and work extensions totaling to over USD 250 Mn. since 7th Jan 2009. The recent successes include a single order of USD 50 Million, and multiple orders from across industry verticals, technologies and geographies, reflecting an all round positive trend. More than half of this value comes from new POs, which reinforces the confidence that customers have been sharing with us in our discussions”
 
 
The Board had recommended to the Ministry of Corporate Affairs for the removal of Price Waterhouse (PW) as the statutory auditors of the company and notified PW. PW has tendered its resignation to act as Statutory Auditors of the company. The company is now intending to appoint new statutory auditors.
 
“The Board has authorized its CEO, Mr. AS Murty to finalize and implement a retention plan for its key associates (in consultation with Boston Consulting Group and Special Advisors) and endorsed actions now underway to fine tune the expenditure and profit optimization plan” said Mr. Achuthan, Board Member.
 
Commenting on the use of funds, Mr. Manoharan, Director, stated, “We are using the bank funding in a controlled and phased manner to meet immediate and near-term operating requirements, including payments to vendors. The good news is that we are receiving unsolicited offers from banks for funding.”
 
Today’s meeting was the seventh since its reconstitution on 10th Jan 2009. Mr. Homi Khusrokhan and Mr Partho Datta, Special Advisors to the Board, Legal advisors and senior BCG representatives were also present for the meeting.

HYDERABAD, India, Feb. 05, 2009: Satyam Computer Services Limited (NYSE: SAY), a global consulting and information technology services provider, today said that its full Board met over two days (4th and 5th Feb 2009) along with their Advisors.  This was the fifth meeting of the Board (in less than a month) and was chaired by Mr. Achuthan, former Presiding Officer of Securities Appellate Tribunal and Member of the Board.
The Board announced that it has appointed Mr. A.S. Murty as Satyam’s Chief Executive Officer, effective immediately. 
 “Mr. Murty (‘ASM’) is a Satyam veteran of 15 years, who has been in its forefront since Jan 1994. He brings to play a deep understanding of the organization, proven expertise in leading a Business Unit, overseeing Global Delivery, nurturing Customer relationships and spearheading the entire gamut of the Human Resources function.  He is well respected for his ability to effectively integrate the team and enable a collective decision making – which will be critical as Satyam moves into its revival phase.” said Mr. Deepak Parekh, Member of the Board.
“In our interactions over the past few weeks, we are convinced that Satyam needs an internal leader to steer it at this critical juncture and ASM has the required bandwidth and support.”  added Mr. Parekh.
The Board also announced the appointment of Mr. Homi Khusrokhan and Mr. Partho Datta as Special Advisors to the Board, to assist in Management and Finance areas, respectively. The Special Advisors, along with Boston Consulting Group will work pro bono and will assist the newly named CEO and the Board, in defining priorities and executing them, effectively.
These decisions are aimed at quickly stabilizing Satyam. The organization has visibly increased its focus on business continuity for its customers and confidence building amongst its associates (employees) and vendors.
“This is a unique opportunity to provide direction and guidance and I accept it with all humility. I have no misgivings about the enormity of the task in front of us, but together with my colleagues, I am confident we can accomplish the impossible. I look forward to working very closely with the Board, our Advisors and all Satyamites – to restore Satyam to its well-deserved glory. We will chart a precise and practical 30 – 60 – 90 day plan that will encompass and address the interests of all stakeholders.” Mr. Murty said
Commented Mr. Khusrokhan on his role : “Having led large organizations before, I expect this opportunity to be a singularly enriching experience and I look forward to contributing my might to this noble task”.
Referring to another significant development, the board today confirmed receiving bank sanctions for a total sum of Rs. 600 Crores (USD 130 Mn. approx) as a planned fund infusion towards working capital requirements. This funding, along with healthy collections, is expected to help the company tide over its financial challenges.  Satyam also reaffirmed that January 09 salaries (globally) and the fortnightly salary in Feb 09 (for its US based associates) have been met from its internal accruals.  (US payroll is run fortnightly for US based associates and has been so since company’s inception).
“Completing the complex financial restatement exercise including announcement of Q3 results and ensuring prudent financial operations will be the primary focus in the next few weeks” Mr Datta added. He will be overseeing the financial operations of the company

The Board confirmed that their key priorities and collective focus remain unchanged:
· Reaching out to key Customers & associates to reinforce their trust and confidence
· Asserting the financial position and restatement of Q3 results
· Evaluating long-term strategic options, in consultation with the Advisors
· Assessing legal liabilities and dealing with them comprehensively
· Undertaking cost rationalization measures
· Resuming investments in identified areas

Wachtell, Lipton, Rosen & Katz (www.wlrk.com) have been appointed as Satyam’s lawyers to address the Class Action suits in US. Latham & Watkins have been lawyers to Satyam for over eight years and they will continue to support Satyam in its continuing dialogue with US SEC.

“I am confident that we are on the right track and we will be able to safeguard interests of our customers, associates, investors and other stakeholders” said Mr. Achuthan, Member of the Board, who chaired today’s meeting.

The acquisition gives Piramal ownership of Holdings’ sales and distribution network in the U.S. and complements Piramal’s pending acquisition of inhalation anesthetic gas manufacturer Minrad International Inc. (“Minrad”), announced in December 2008, which is awaiting the approval of stockholders of Minrad. Holdings’ customers include hospitals and hospital group purchasing organizations, national and regional wholesalers, outpatient surgery centers and ambulatory care clinics.

Piramal’s acquisition of Holdings includes approximately 2,800 vaporizers required for administration of the inhalation of anesthetic gas, of which 2,300 are installed at various customer locations. Piramal will continue the employment of Holdings’ current sales and marketing specialists, as well as key administrative personnel.

Mumbai, January 26, 2009: Hindustan Unilever Limited (HUL) announced that D.Sundaram has decided to retire from the Board of the company and from his role as the Vice Chairman and CFO, at the shareholders Annual General Meeting scheduled in July 2009.

He has served the business with distinction for 33 years and has led the Finance and IT functions of the company for more than 9 years, initially as Director and later as the Vice Chairman. He has been an executive member of the Board of Directors of the company since May 1999.  In his long and distinguished career, Mr Sundaram has held several senior positions both in India and overseas, including as the Finance Director of Brooke Bond Lipton India Ltd..

R. Sridhar, 44, till recently Vice President, Finance and Controller, Unilever, for the Asia, Africa and Central & Eastern Europe (AACEE) region, will succeed Mr Sundaram as Executive Director, Finance & IT. Mr Sridhar will be proposed for election to the Board of the company at the forthcoming AGM of the shareholders.

Harish Manwani, Chairman, HUL, said, “I wish to take the opportunity to express my deep appreciation for the significant contribution that Sundaram has made to the business in India and on the board of HUL. I am also pleased that Sridhar will take over as CFO of HUL on Sundaram’s retirement. He brings with him rich experience of diverse leadership responsibilities in the Finance function for Unilever in AACEE Region and prior to that in India. The changes reflect our strong commitment towards leadership development and our tradition of leveraging experiences and synergies of talent across markets.”

 • EBITDA up 64.3% to Rs. 1,252.5 crore in first 9 months FY 09 from Rs. 762.3 crores in first 9 months FY 08

 • Consolidated Profit After Tax down 9.4% to Rs. 354.7 crore in first 9 months FY 09 from Rs. 391.3 crore in first 9 months FY 08

 • Basic EPS down 15.1% to Rs. 13.2 in first 9 months FY 09 from Rs. 15.5 in first 9 months FY 08

 Q3 FY 09 compared to Q3 FY 08 (YoY)

 • Consolidated Total Revenues up 26.2% to Rs. 546.1 crore in Q3 of FY 09 from Rs. 432.7 crore in Q3 of FY 08

 • EBITDA up 14.3% to Rs. 381.2 crores in Q3 of FY 09 from Rs. 333.6 crore in Q3 of FY 08

 • Consolidated Profit After Tax down 57.3% to Rs. 70 crore in Q3 of FY 09 from Rs. 163.9 crore in Q3 of FY 08

 • Basic EPS down 60.9% to Rs. 2.5 in Q3 of FY 09 from Rs. 6.4 in Q3 of FY 08