Birlasoft, KPIT Create 2 Cos in the ‘Digital Business IT Services’ and ‘Automotive Engineering and Mobility Solutions’

The CK Birla Group owned Birlasoft joins KPIT promoters in launching an open offer for the minority shareholders of KPIT. Birlasoft will work closely with KPIT to first merge into KPIT and later split the combined entity of Birlasoft + KPIT into two public companies: A USD 500+ million Enterprise Digital Business IT Services Company (‘Birlasoft’), and a USD 200+ million company focused on Automotive Engineering and Mobility Solutions (‘KPIT Technologies’).

Transaction Highlights

·         Creates a new leader in the mid-tier IT services space: The new Digital Business IT Services company will grow the Birlasoft brand by combining it with the KPIT ITSS business, which is a world leader in Digital Enterprise Solutions (SAP, JD Edwards, Oracle), IoT, Cloud and Digital Transformation

·         Creates new KPIT Technologies, global leader in Automotive Engineering and Mobility Solutions, which will evolve from the current Engineering business of KPIT.

Birlasoft, part of the USD 1.6 billion diversified CK Birla Group, and KPIT, today announced the coming together of Birlasoft and KPIT to create a USD 700+ million combined entity that will later demerge into two separate companies, focused on ‘Digital Business IT Services’ (Birlasoft) and ‘Automotive Engineering and Mobility Solutions’ (the new KPIT Technologies) respectively. During the period prior to completion of the deal, Birlasoft and KPIT will continue to be run by their current managements, in addition to which management from Birlasoft and KPIT will work together to familiarize Birlasoft with the ITSS business.

At the conclusion of the deal, two new companies will be created. The new ‘Birlasoft’ will be a USD 500 million Digital Business IT Services company that will be created by merging the KPIT ITSS business with the current Birlasoft, creating a new leader in the mid-tier IT services space which will also be called Birlasoft. 

The new ‘KPIT Technologies’ will be a USD 200+ million focused Engineering Services company that will be created by tapping into the current Engineering business of KPIT to create a global leader in Automotive Engineering and Mobility Solutions.

Commenting on the partnership, Amita Birla, Chairman of Birlasoft said “Digital solutions are today not confined to the periphery of business but are transforming the very core of business processes. The digital age requires each organisation to reinvent itself to address and lead the disruption and opportunities it brings. With this, Birlasoft will expand its industry leading capability in Enterprise solutions with unmatched digital capability. We will become the leading ‘Enterprise Digital’ company in the country that will advise its customers in unlocking value in their digital journey.

Ravi Pandit, Chairman of KPIT, added that “The tremendous value created by KPIT over the last 27 years will continue in two new avatars and become leading companies in their respective spaces. Over the years, we have gained reputation as one of the global leaders in Automotive Embedded Software. We will be focused on building the KPIT brand as the foremost organisation in the world for Automotive Engineering and Mobility Solutions. The world of Automotive and Mobility are at the cusp of great change and we are excited to be at the technology forefront in this global movement. While transitioning the “Business IT Services” business to Birlasoft in the next year, our team will continue to work with Birlasoft to ensure the best service to the KPIT Business IT customers.”

The new ‘Birlasoft’, that will emerge over the next year, will combine the management team and the IT Services business of KPIT with the current Birlasoft. It will be led by Anjan Lahiri as the CEO and MD. The company will have:

• The highest percentage of business coming from core enterprise systems vis-à-vis any other competitor
• Unique, industry leading capabilities from the Enterprise Product and Cloud companies: SAP, Oracle, JDE and Salesforce.com. The company will have the highest level of partnership with SAP, Oracle as well as with Salesforce, a position unmatched by any other similar company

·         Significant ‘Digital’ capability in Analytics, RPA (Robotic Process Automation), Digital Portals, User Experience and Digital advisory services

·         Significant capability and presence in Application Development, Support and Maintenance for Next Generation Services in the digital world

The new KPIT Technologies will leverage KPIT’s expertise in Automotive and Mobility, and will be led by Kishor Patil as the CEO and MD. This company will deepen the relationship with global Automotive and Mobility leaders in fulfilling their engineering needs. The company will continue to enhance its expertise in all the features to deliver cleaner, safer and smarter solutions to the world of Automotive and Mobility.

Advisors To The Transaction

• Advisor to The CK Birla Group and Birlasoft: Kotak Investment Banking
• Advisor to KPIT: Avendus Capital Private Limited

Valuation Report: EY

92.7 BIG FM Bangalore Celebrates Musical Republic Day with Theme of ‘MUSIC UNITES’

92.7 BIG FM, one of the India’s largest radio network stayed true to its promise of providing more music with a musical celebration on the occasion of India's 69^th Republic Day. The only bilingual radio station in Bangalore promoted the message of ‘Music Unites’ with various music-led activities on 26^th January. With the concept of Studio-on-Wheels, the MJs went on-ground at Lal Bagh to spread the idea among the 5 + lakhs Bengalureans present at the location. Ninaad, the popular music band, joined the celebrations by singing classic numbers from Sandalwood and Bollywood, and thoroughly entertained the audience.

92.7 BIG FM is known for entertaining listeners through innovative concepts that resonate with the sensibilities of audience across age groups. This Republic Day, the radio station united the citizens across different languages on one platform through the power of music. The music band enthralled the music enthusiasts from the two of the most followed entertainment industries of Bangalore – Sandalwood and Bollywood..

Speaking about the Republic Day celebrations, MJ Shruti from 92.7 BIG FM said, “Every year our efforts are concentrated towards providing meaningful entertainment to our listeners especially during such noteworthy occasions. ‘Music Unites’ was clearly aimed at reflecting the unity in diversity that exists among the Bengalureans. It was great to have Ninaad band join us in making this day for all our citizens, a truly musical and magical one. We also enjoyed rewarding our BIG Loyalists - the ones with the loudest cheer during the celebrations, with Tulsi Saplings. We experienced their excitement and willingness to take the responsibility forward of promoting a clean and green environment.”

Fortifying its ethos of providing entertainment with a cause, the radio station tapped on to the opportunity of reaching out to a vast set of audiences and took forth the cause of 'Right to Clean Air.’

India’s First Make-in-India’ In-Car Wireless Charging Solution for Automakers Support

PowerSquare, one of the leading innovators in the wireless charging segment, today announced in-car wireless charging solutions for the automotive sector. Conceptualized and engineered indigenously, PowerSquare is working with Automobile OEM’s and Tier-1 suppliers to manufacture the module and provide a completely “made in India” wireless charging solution for cars in India.

PowerSquare’s in-car wireless charging solution eliminates the need to search for power cords or charging cables to power-up each handheld device. The user simply places the device on the charging area and the power is wirelessly transferred to the device. The brand agnostic module lets the user charge any brand of Qi-compatible device. With wireless charging, users can experience a much safer and convenient way of powering up their device while on the move.

Speaking about this announcement, Pavan Pudipeddi, Founder & CEO of PowerSquare said, “Globally, the technology has only been implemented in luxury and mid-premium vehicles, provided by Tier 1 suppliers. With our cost-effective approach to system design coupled with localization, we intend to bring this feature into mid-segment vehicles. We are currently working with multiple global and Indian automotive manufacturers to embed this technology in their new models.”

The PowerSquare in-car wireless charging module is a 3 coil-design which can be customized and placed on the dashboard, central console or arm rest. The module supports Qi-compatible phones with full 5W and 15W receiving capabilities. The system is designed to intelligently detect the type of device on the charging area and optimizes the charging rate appropriately. The system will differentiate between an iPhone and a Samsung phone and deliver 7.5W or a 10W faster charging mode to the device.

Anand Katragadda, Co-Founder & COO of PowerSquare added, “PowerSquare is envisioning a future where we can bring wireless power to every aspect of a consumer’s life. The team here in Bangalore is working to extend their wireless technology expertise for future applications such as electric vehicles, kitchen appliance, power tools among others”

Specifications

• 3 coil design provides position-free experience
• WPC standard Qi V 1.2 compatible
• Up to 70% maximum power transfer efficiency
• Supports phones with full 5W and 15W receiving capability
• Supports Apple and Samsung fast charging modes
• Protection against over voltage, over current and over temperature
• Optional NFC or proximity detection to detect presence of phone for smart turn on

• Enhanced Foreign Object Detection (FOD) - detects objects before power transfer

• Fully customized per OEM’s requirement to meet Automotive EMI/EMC standards

In the next 18 months, wireless charging looks set to be the cornerstone of the mobile industry, as all the major phone OEM’s are looking to embed the Qi wireless charging technology into all their offerings. With such widespread adoption of the technology on the cards, wireless charging shall find utility and relevance across a host of sectors. Thus, PowerSquare is focusing on bringing wireless power and wireless charging solutions in sectors like Consumer Electronics, Automotive and Infrastructure.With offices in India, Hong Kong and the U.S, PowerSquare is on a mission to build a Digital Lifestyle Innovations Brand.

Infosys Foundation, Kailash Satyarthi Children's Foundation Sign MoU for Children’s Health, Education

Infosys Foundation, the philanthropic arm of Infosys, has signed a Memorandum of Understanding (MoU) with the Kailash Satyarthi Children's Foundation for a grant to create a child-friendly village focused towards improving children’s health, providing education and creating a non-violent environment. Infosys Foundation will disburse this grant over the next three years.

The Kailash Satyarthi Children’s Foundation (KSCF), a non-profit organization, envisions a world where every child is free, safe, healthy, educated and has the ability to discover their potential. Kailash Satyarthi has been at the forefront of the global movement to end child slavery and exploitative child labour and was jointly awarded the Nobel Peace Prize in 2014.

This project will be aimed at creating:

·         Child labour free villages

·         Benefits for 10,000 children, women and youth through education, vocational training and career counselling

·         100 percent enrolment and retention in schools

·         Creation and recognition of a Bal Panchayat (children’s governing body) within the Gram Panchayat (village governing body)

·         Zero incidences of child marriage and other social evils in villages

·         Improved child protection mechanism in the villages

·         Proper water, sanitation and hygiene in the villages

·         Awareness about government schemes

National Winners of #HondaNAViCustomania Announced in Finale

Amongst huge fanfare, Honda Motorcycle and Scooter India Pvt. Ltd today announced the national winner of #HondaNAVicustomania. The Grand Finale was concluded at high voltage Bollywood Music Project 2018 where thousands of youth congregated to witness Bollywood music performances and saw the FUNtastic NAVi in it’s full glory.

At the grand Finale the winner were felicitated by Minoru Kato, President and CEO, Honda Motorcycle and Scooter India Pvt. Ltd.

Launched in 2016, NAVi’s design statement in its standard form, is FUN TO SEE and pure FUN TO RIDE. Providing endless possibilities in expression & Customization for the young customers - NAVi is designed in such a way, that it opens up a significant opportunity to modify & customize it to suit one’s taste. And therefore pure FUN to Create.

Speaking on #HondaNAViCustomania Grand Finale event,  Yadvinder Singh Guleria, Senior Vice President, Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “NAVI’s unique design provides endless possibilities in customization for young customers. Celebrating the spirit of customisation, NAVi Customania is a platform for youngsters to project their self-expression on two wheels. What is most interesting is to see is the trend of customisation being developed, not just in metros but smaller cities as well. We congratulate the well deserving winners and look forward to showcase their custom NAVi’s at Honda 2Wheelers India pavilion @ Auto Expo 2018!!’’

Battling it out amongst the Top 24 (2 winners from each city), Grand Finale winner Dhananjay Parihar received a prize money of Rs. 2 lacs along with a once in a lifetime opportunity to showcase his/her custom NAVi’ inside the Honda 2Wheelers India pavilion at Auto Expo 2018. Ashiq Joseph Thomas from Kottayam finished runner-up and won Rs 1 lac.

Ecstatic on his win, Dhananjay Parihar said, “The feeling that my custom NAVi will be showcased at the Auto Expo has still not fully sunk in. #HondaNAViCustomania gave me an incredible chance to exhibit my creativity to the world. The guidance during construction phase via the mentor sessions was very helpful and provided my design a new dimension. I appreciate and thank Honda 2Wheelers India for providing me with this platform.”

Not just for NAVi owners, Honda also organised a separate web and application edition of the contest, especially for the tech savvy young generation. Jyugaandh Veer Singh and Lalith Ankala were announced the winners of the web and application-based editions respectively which alone saw more than 5500 participations.

Mastercard’s Global Startup Incubator Kicks-Off a New Season with Zeta and 10 Additional New Startups

         

As part of its commitment to building the future of commerce, Mastercard recently announced the group of companies selected to matriculate into the Mastercard Start Path Global 2017 wave. Out of the 11 startups selected, Zeta - the fintech startup to revolutionise employee tax benefits in India is the only entrant from the Asia Pacific region.

Co-founded by Bhavin Turakhia (CEO) and Ramki Gaddipati (CTO), Zeta has revolutionised the space of employee claims and reimbursements by launching an innovative cloud-based enterprise solution suite called Zeta OptimaTM. The product offering includes employee benefits such as reimbursements for medical, fuel, LTA, mobile, books and several other such company benefits - all accessible digitally for both corporations and employees. Zeta Optima™ is used by 1.5 million users across 12,000+ organizations in India. Zeta is a single platform which manages multiple benefits and the solution is compliant and customisable at the same time, making it a first-of-its-kind offering in the employee benefits space in India.

Start Path Global will provide Zeta and its fellow matriculants with operational support, commercial access and strategic investment. Launched in 2014, the program has seen much success around the world. The program has mentored approximately 1,600 startups per year and engages with more than 150 of them around the globe.

Commenting on the announcement, Porush Singh, Country Corporate Officer, India & Division President, South Asia, Mastercard said, “Over the past few years, India has witnessed a tremendous growth in its start-up ecosystem. To continue driving momentum, providing the right mentorship and operational support to these upcoming companies is mission critical. Start Path is one such initiative by Mastercard that exposes young professionals to international markets and provides an enriching global experience. I congratulate Zeta on being chosen for the Global Start Path Program.”

Commenting on their selection, Ramki Gaddipati, CTO and Co-founder, Zeta said, “We are proud to be shortlisted for the Mastercard Start Path program. As pioneers in digital employee benefits, we are handling complex payment scenarios and bridging transaction data with enterprise policies and systems. Mastercard will be a great partner helping us participate in the global digital payment ecosystem. Start Path specifically gives us an opportunity to take our solutions to a range of Mastercard partners across the world.”

The other Start Path companies selected this year are:

●          AID:Tech delivers digital entitlements transparently through blockchain technology and digital identity.

●          b.well makes managing healthcare and insurance simple by unlocking insights on patients.

●          Flutterwave is fostering digital payment acceptance and infrastructure for banks and businesses across Africa.

●          Goodworld powers the world’s only technology for frictionless hashtag payments on social media.

●          HYPR reduces the risk of data breaches by eliminating the need for a centralized credential store.

●          Mobeewave enables smartphones to accept contactless payments without external hardware.

●          Railsbank gives companies access to a global banking network through simple APIs.

●          Sensibill’s platform turns everyday purchase receipts into a core part of the digital banking experience.

●          ShieldPay‘s instant digital escrow facility enables everyone, everywhere to transact with each other in total confidence.

●          Trunomi unlocks the power of customer data using data rights management.

These companies will work with Start Path against a tailored plan to help them scale. Applications for the six-month virtual program are accepted on a rolling basis. The program is open to startups who are rethinking banking, payments and commerce and have raised a significant seed or Series A round of investment.

MNC Banks, Insurance Firms to Move into GIFT City; Targets 1 Million Employment by 2025

Gujarat International Finance Tech-City (GIFT), a joint venture of IL&FS and Government of Gujarat, conceptualised by Prime Minister Narendra Modi has come of age as it finds place not only among the top 15 emerging Global Financial Centres but lately also experiencing growth in terms of large numbers of MNC companies coming in and also increase in its employment to 1 million by 2025.

GIFT City is operational and various financial institutions and IT/ITeS companies are operating from the city. Around 11 banks have been allotted space for their IBUs in the current phase in GIFT IFSC. These include: Federal Bank, Yes Bank, ICICI Bank, IDBI Bank, and Kotak Mahindra Bank have been operational. Going forward the management expect leading MNCs in the banking and insurance sector to take up space.

Talking to the media, Ajay Pandey, Managing Director and CEO of GIFT Ltd says, “Since operation began in 2017. GIFT has attracted over 160 major Indian banking and insurance companies and now 40 odd large MNCs have also expressed interest in the project. Coming months will see these banks starting their operations in GIFT.”

Even though, Pandey did not reveal the name of the new companies, Industry sources indicate that it not only pure banking and financial institution but also IT/ITeS companies focusing on the BFSI vertical who are likely to move in. In addition, many well-known IT/ITeS companies, both domestic and global, have set up their own units at GIFT City, these include MNC giants like Oracle, SIAC, befree, Pioneer Insurance Brokers, Maxim Integrated and many more.

Special Tax Rebates Offered at GIFT City

Tax rebates is another factor why MNCs are heading to GIFT city. The city is a designated SEZ area within its premises that houses India’s first International Financial Services Center (IFSC). The banks and insurance institutions operating in GIFT receive several tax benefits as announced by the Government of India in the previous budget. These include exemption from dividend distribution tax, securities transaction tax, long-term capital gain tax and commodity transaction tax. In addition, for the companies located in IFSC, Minimum Alternate Tax (MAT) is reduced to 9%. This reduction in MAT, which currently is at 18.5%, provides a competitive tax regime to IFSC at GIFT-City. Besides the local Gujarat government of IT/ITeS policy waivers off stamp duty on share broking transactions in GIFT City. “We are the only second city after Jamshedpur to offer these tax reduces, says Pandey and adds that the tax incentives will further boost the development of India’s first IFSC at GIFT City.”

GIFT has also allotted space to institutions like SBI, LIC, BSE Broker’s Forum and Reliance Capital. Bangalore-based developers like Prestige Group, Brigade Group and also Hiranandani, World Trade Centre etc. are developing various facilities in GIFT City.

GIFT to Employ 1 Million Direct and Indirect Employment by 2025

GIFT over the years has not only attracted major companies but also got in a lot of employment in the region. These include large IT companies like TCS employing over 1,000 skilled and semi-skilled IT staff while Oracle employs 150 and so around 7500 people are working within GIFT City and it is expected that over the next few years the employment will reach around 30,000 people.

When GIFT City will be fully operational it will create 10 lakh i.e. 1 million direct and equal numbers of indirect jobs.

“India enjoys significantly lower operational and wage costs as compared to leading business centers like Dubai, Singapore, London and New York. It has a large pool of individuals with professional and technical skills owing to its demographic dividend. Moreover, we produce the finest brains in the finance sector. IFSCs at London, Dubai, New York, and Singapore incidentally have a large number of Indians managing complex transactions and leading financial innovations,” concludes Pandey.