Bangalore: India is expected to emerge as one of the fastest growing aircraft repair hubs in the next 10 years, with the potential to service fleet of 1,000 commercial and 500 general aviation aircraft by 2020, research and audit firm Ernst and Young said.
The repair hub business, called maintenance repair and overhaul or MRO, is expected to grow annually by 11.8% to $1.2 billion, or Rs5,480 crore, by 2017, from $440 million in 2007, the firm said in a new report on Indian aviation by E&Y released on Wednesday.
International players are opting to offshore their global contracts or obligations to India to benefit from low manpower costs of approximately $15 per hour, which is 20% lesser than in the Asia-Pacific region and nearly 50% lesser than in the US.
But the report warned the industry’s growth could be derailed by higher local taxes that could make servicing aircraft India expensive and competition from regional hubs such as Dubai, Singapore and Malaysia.
— Staff Writer
Strike?affects?operations of state-owned banks
Mumbai: Banking services in the country suffered on Wednesday as about 900,000 public sector bank employees went on strike to protest mergers of banks and delay in wage increase.
The strike was convened by United Forum of Bank Unions (UFBU) and All India Bank Employees’ Association. About 60,000 branches of state-owned banks were closed due to the strike. The strike is expected to continue on Thursday as well. The union will meet shortly to chalk out further course of action, said a union official.
Clearing activities and cash transactions of many banks were affected, bank officials said.
Apart from the merger, other demands of the unions include settlement of issues like wage revision, another option for pension scheme, termination of job outsourcing in the banking industry and immediate appointments in the class IV cadre.
— Staff Writer / PTI
Daiichi awaits approval for Ranbaxy takeover
Toyko: Japanese pharma company Daiichi Sankyo Co. Ltd still awaits regulatory approval from Indian regulators to buy a controlling stake in Ranbaxy Laboratories Ltd, after announcing it has completed its tender offer for Ranbaxy shares.
Daiichi offered to buy 34.8% of Ranbaxy from its chief executive officer Malvinder Singh and his family and up to 12.2% in new shares. This would give Tokyo-based Daiichi Sankyo as much as a 67% stake, including Tuesday’s completion of a public tender offer for 20% of shares.
India requires a cabinet review of foreign takeovers of more than Rs600 crore. Daiichi also needs approval from the Reserve Bank of India after the cabinet review, Daiichi spokesman Yasuki Minobe said.
QVC to raise more funds, enter new verticals
Bangalore: QVC Realty, the country’s first venture capital-backed real estate firm, is going for a second round of fund-raising after exhausting the $100 million (Rs458 crore) that it raised last year in buying land for its new projects.
“We want to raise another $100 million in the next four-five months to buy more land and plan more projects,” said Prakash Gurbaxani, chief executive and founder of the firm, at the launch of its first project, a luxury villa project in north Bangalore.
The money will be raised from private equity firms as the company plans to venture into building hotels as well as commercial office and retail space.
The company is also planning to enter new markets such as Hyderabad and Chennai and, at a later stage, Kolkata.
QVC has been planning to acquire a construction company to better its services in terms of quality and cost control as well as timely delivery. But Gurbaxani said it is still on the lookout for a firm and has not yet finalized any deal.
— Madhurima Nandy
Govt issues service tax notice to Microsoft
Banglore/New Delhi: India’s service tax department has issued a notice to the local unit of Microsoft Corp. seeking taxes, said a government official.
The department has issued a notice demanding Rs128 crore in taxes and imposed a penalty of another Rs128 crore, Hemambika Priya, official spokeswomen of the Central Board for Excise and Customs, said in a telephone interview. She didn’t give details.
Microsoft said it hadn’t received the tax notice and its operations were in compliance with Indian laws.
“We are yet to receive a copy of the tax notice and, therefore, unable to comment any further,” Meenu Handa, spokeswoman for Microsoft India, said in an emailed statement.
“However, we do believe we are in compliance with our obligations under Indian tax laws; and we will work with the Indian tax authorities to resolve this matter.”