THE ECONOMIC ??Sachin Bansal and Binny Bansal, completed an investment round of $360 million...

THE ECONOMIC ??Sachin Bansal and Binny Bansal, completed an investment round of $360 million (.`2,200 crore), which valued the Bangalore-based frm at $1.6 billion (over .`9,900 crore)
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Transcript of THE ECONOMIC ??Sachin Bansal and Binny Bansal, completed an investment round of $360 million...


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    EBay has acquired anotherlarge slice of Indias second-largest online retailer, a pre-

    cursor many believe to a full pur-chase of the Delhi-based Snapdeal.

    By leading an investment of$133.77 million (about . 830 crore),the US-based company is bettingthat the fast-growing Snapdeal willhelp it compete against the likes ofFlipkart and Amazon in one of thefastest-growing markets for ecom-merce in the world.

    People familiar with the negotia-tions said the investment valuesSnapdeal at $650-750 million (about. 4,000-4,700 crore). eBay is estimat-ed to own between 35% and 40% of

    the company, and founders KunalBahl and Rohit Bansal under 20%together. eBay and Snapdeal de-clined to divulge financial details.

    Jay Lee, senior vice-president andmanaging director for Asia-Pacificat eBay, said accelerating growth inIndia and other emerging marketsis a core strategy for the company.We continue to invest in Snapdealdue to its complementary businessmodel, good management team andstrong brand, he said.

    The eBay-led investment is the lat-est transaction in Indias boomingonline retail sector, which is esti-mated to grow in size to $56 billion(almost . 3.5 lakh crore) in 2023 from$2 billion (. 12,400 crore) now. Lessthan a month ago, fashion portalMyntra raised $50 million (. 310

    crore) from the Azim Premji familyoffice and other investors. In Octo-ber last year, Flipkart, founded bySachin Bansal and Binny Bansal,completed an investment round of$360 million (. 2,200 crore), whichvalued the Bangalore-based frm at$1.6 billion (over . 9,900 crore).

    eBay, which is a distant second toAmazon in its home market of US,is expected to start the process ofconsolidating its ownership ofSnapdeal within a couple ofmonths, said people with knowl-edge of the discussions.It will take12-18 months for the process to becompleted as they will need to buyout shares of numerous investors,said the person.

    eBay Snaps Up Another Chunk of SnapdealLeads . 830-cr funding into ecommerce company; Buyout maybe on cards

    Snapdeal Raised . 50m Last Year8

    Learn to Take onGlobal Challenges,Modi Tells TradersGives business a

    reformist message;

    says govt must form

    strategies for each

    state separately

    they fear loss of revenues if theexisting levies were replaced.

    With the general elections fastapproaching, Modi also laid outhis economic views separatelyat a conference on the Indianeconomy later in the day.Speedy, yet sustainable, eco-nomic growth that is inclusiveof all is the need of the hour, hetold a crowd of businessmen,bankers, economists and diplo-mats.

    As India is vast, he said thereare no tailor-made solutions forthe problems of the entire coun-

    try. The govern-ment must identi-fy the strengths ofeach state and de-vise strategies ac-cordingly, he

    said in an hour-long speech. Butfor that the prime minister andchief ministers must act as ateam. This is not rocket sci-ence. The harmony is missingin decisions.

    Modi also revealed his plans toaccommodate women in boost-ing growth. Women form 50%of the population, but they as-sume that they have no role incontributing to GDP growth.The truth is they play a hugerole, be it in animal husbandry,healthcare or handicrafts.

    Modi spoke in Hindi, whichdisappointed at least a few for-eign nationals people from 25countries attended the meeting,according to organisers of theevent in the audience.


    Narendra Modi, the BJPs can-didate for prime minister, saidon Thursday Indias traders andgrocery store owners mustlearn to compete with largemodern stores and online retail-ers, comments that could signalachange in a key economic prin-ciple of the party.

    The BJP had opposed the gov-ernments decision in late 2012to allow foreign supermarketsto open in India due to the threatit says the move poses to mil-lions of kirana store ownersand small traders who form thecrux of the partys support.

    In a separate speech, Modi laidout a reformist agenda andpromised policy implementa-tion to an audience comprisinginvestors, businessmen andeconomists. But Modi stoppedshort of commenting on wheth-er he supports or opposes for-eign investment in retail. Weshould not worry about the chal-lenges from global trade, hetold a gathering of the Confeder-ation of All India Traders. Rath-er, he said, small traders shouldemphasise on quality of theirproducts to compete better andcould enter into contracts withbig online retailers to createvirtual malls in small shops.

    Earlier this month, the newly-elected BJP government of Ra-jasthan rolled back the decisionto allow foreign investment inretail. More than half of the 28state governments are againstthe policy.

    Modi, the chief minister ofGujarat, said he also favouredintroducing a nationwide goodsand services tax (GST), a long-pending reform expected tobring a uniform market, reducecosts of businesses and in-crease government revenue.

    Many states, including BJP-ruled ones, have resisted GST as

    Subrata Roy Missing from Mothers

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    emption from appearing before SC to attend to

    his mother, was missing from her bedside when

    the police came knocking on Thursday.


    IT Firms Seek Design School Talentfor New Verticals Like Cloud

    IT firms are making a beeline to design schools

    as the focus verticals such as product design and

    emerging technologies like mobile and cloud

    gather traction in India.

    Career & Business Life 10llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

    BPCL Raises 175 Million SwissFrancs Via Offshore Bonds

    BPCL has raised around 175 million Swiss francs

    by selling offshore bonds bearing a coupon rate

    of 2.988% and maturing in December 2019.

    Markets + Finance11

    Inside story


    For any pedigreed company or in-dividual donors looking to gettheir names on a building at the

    Indian Institute of Management inAhmedabad (IIM-A), the countrystop-ranked business school, nowsthe time to do so. Naming rights forvarious buildings on the campus areon offer, as the institute tries to em-ulate a fund-raising method thatswell established overseas.

    Back home, the Indian Institutes ofTechnology and the Indian School ofBusiness are among educational es-

    tablishments that use this method todrum up contributions.

    Yes, we are in the process of imple-menting infrastructure namingrights, said IIM-A director AshishNanda, a Harvard Law School profes-sor who was appointed last year aftera global hunt that took nearly 10months.

    He said that Arvind Sahay, a profes-sor at the school, was heading the pro-ject.

    Big education institutions such asHarvard Business School receive asubstantial portion of their revenuefrom naming rights.

    If we can have a large corpus, then

    this may also result in the decrease ofstudent fees, said an official associ-ated with the plan. IIM-A rights willbe awarded for a fixed tenure and theterms will vary.

    Amongst IIMs, the Ahmedabadschool will be the first to give outnaming rights in an organised for-mat, said the person.

    Harvard Business Schools 2013 an-nual report showed revenue of $587million, of which 31% came frompublishing, 25% from executive edu-cation tuition, 18% from MBA tuitionand fees, 2% from housing, rents andothers and 24% from endowment dis-tribution and gifts.

    All are Welcome at IIM-A Naming Ceremony Following global cues, premier business school offers building naming rights in order to drum up funds


    Hyderabad-based infrastructure com-pany Ramky Infrastructure is in nego-tiations with private equity fund Mor-gan Stanley Infrastructure Partnersand the structured investment group ofthe Ajay Piramal group to sell three ofits road assets to raise funds and cutdebts. The company plans to raise . 900crore from the sale of assets. These as-sets include Ramky Elsamex, SehoreKosmi Tollways and NAM Expressway.

    The infrastructure company has ap-pointed ICICI Securities as the invest-ment banker for the transaction.

    Ramky Infrastructure is at an ad-vanced stage of discussions with the in-vestors for selling three road assets.The due diligence process has alreadystarted and the company expects to con-clude the deal with the investors overthe next couple of months. IL&FS hasagreed to sell its 50% stake in NAM Ex-pressway, said a person with directknowledge of the deal.

    Other infrastructure sector investorssuch as IDFC Alternatives have alsobeen approached. Potential investorshave recently undertaken due diligence

    of the NAM Expressway project in Hyd-erabad. While Ramky Infra and Ajay Pi-ramal group declined to comment, ICI-CI Securities and Morgan Stanley wereunavailable for comments.

    Ramky Infra Looks toSell Three Road Assets

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    case earlier this month allegingthat gas prices are being raisedbecause of crony capitalism in-volving Ambani, oil minister Vee-rappa Moily and other politic-ians. AAP kept up its attack on

    ernment saying that BiometrixMarketing, which operates fromju