Will new ECB norms encourage USD inflows ?

The Finance Ministry today relaxed norms on external commercial borrowings(ECBs). There were three distinct strands on which norms were relaxed. Limits on borrowings by companies for rupee expenditure was raised from USD 20 million to USD 50 million. Companies in the infrastructure sector can however raise USD 100 million. The USD 500 million per company per year limit under the Automatic Route was kept unchanged. (more…)

Zydus Cadila acquires Combix Labs

Zydus Cadila – India’s 4th largest pharmaceutical group and a global healthcare provider, announced its foray into Spain with the acquisition of 100% stake in Laboratories Combix.

Laboratories Combix which has a pure generics focus provides the right fit for Zydus’ entry strategy into a market that is estimated at $ 1.7 billion and is growing at 21.5% compared to 6% for the overall pharmaceutical market in 2007. The Spanish pharmaceutical market is the 5th largest in Europe.

Established in 2006, Combix with a sales and marketing focus has a solid portfolio covering 17 molecules. Additionally, it has a range of products that are pending launch or in the pipeline. The acquisition allows Zydus to jumpstart its business and leverage strengths in product development, a high quality, cost-competitive supply chain and operational efficiency.

Karuturi Global Acquires Land in Ethiopia

With the Government of India creating un-necessary hurdles in allotting barren lands to Corporates, companies are looking overseas for land acquisitions for their global dreams. Just a while ago, we have been informed by the management of Karuturi Global Ltd that the Company has completed its acquisition of 100,000 acres of land in Ethiopia, for cultivation of rice, vegetables, palm oil and sugarcane. The Company is in the process of acquiring a further land bank of 650,000 acres of land in Ethiopia.

Midcap Pick: Everest Kanto Cylinder

Everest Kanto is a dominant player in the domestic and global high pressure seamless gas cylinder market with ~75% market share in India and about 11% worldwide. The majority of its customers are OEMs (based in India, Iran, Pakistan and China). The market has not fully priced in the company’s ability to execute and grow in a supply-constrained global cylinder market (estimated demand of 5 mn cylinders in FY2009 according to the IANGV). Estimate a utilization rate of 60% and a sales CAGR of 50% for FY2008-FY2010E. (more…)

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