Business News

Money laundering case: ED moves Centre to cancel passports of jeweller Nirav Modi, 2 others

The CBI has reportedly issued a look-out circular against the businessman, who left the country on January 1.

The Enforcement Directorate on Thursday wrote to the Ministry of External Affairs seeking the revocation of passports of billionaire diamantaire Nirav Modi, his wife Ami Modi and business partner Mehul Chinubhai Choksi, ANI reported. The Modis, Choksi and Nirav’s brother Nishal Modi have been accused of cheating Punjab National Bank of Rs 280 crore.

Earlier in the day, the Enforcement Directorate raided multiple locations related to Modi on the basis of the bank’s complaint. The agency’s teams conducted raids at three locations in Surat, four in Mumbai and two in Delhi, ANI reported. The ED’s case, filed under the Prevention of Money Laundering Act, is based on a first information report the CBI had earlier filed.

The Securities and Exchange Board of India and the stock exchanges, meanwhile, have begun to analyse and investigate the trade details of all businesses associated with Modi and Choksi, PTI reported.

The CBI in January booked the jewellery designer and the three other accused after Punjab National Bank filed a case of fraud against them. The agency has issued a look-out notice against all accused, ANI reported.

According to the bank’s complaint, Modi and his business partners were allegedly involved in fraudulently issuing Letters of Undertakings – or bank guarantees – at the bank’s Mid Corporate Branch in Mumbai’s Brady House, The Hindu reported. The bank said two of its employees were also involved. Soon after, the CBI raided Modi’s properties.

The Enforcement Directorate said on Wednesday that it plans to investigate if the allegedly defrauded bank funds were laundered and if the money was used by the accused to create illegal assets and black money.

On Wednesday, the Punjab National Bank informed the Bombay Stock Exchange that it detected fraudulent transactions worth more than Rs 11,380 crore in a Mumbai branch. The bank also filed another complaint – in addition to the Rs 280-crore case – against Modi with the CBI. However, the agency has not revealed the details of this complaint, making it unclear if the bank’s disclosure of fraudulent transactions to the Bombay Stock Exchange is related.

PNB says it is committed to ‘clean banking’

Punjab National Bank Managing Director Sunil Mehta on Thursday said that the bank is committed to “clean and responsible banking” and will not shirk its responsibilities to its stakeholders after it emerged that billionaire diamantaire Nirav Modi and three others had allegedly cheated it of Rs 280 crore.

“We are taking efforts to protect the financial interest of the bank,” Mittal said. “We request the media to give us some breathing time to book the culprits. We have registered criminal complaints against two staff members too.”

Mittal said that the fraud started in 2011, and the bank’s officials detected it in the third week of January 2018. After an internal investigation, government agencies were informed. The bank went to the Central Bureau of Investigation on January 29, and a First Information Report was registered on January 31, he added. Nirav Modi left the country on January 1, ANI reported quoting sources.

The bank has the capability to resolve this matter and come out of it, and it would honour all its bona fide commitments to the stakeholders, Mittal added.

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The next Industrial Revolution is here – driven by the digitalization of manufacturing processes

Technologies such as Industry 4.0, IoT, robotics and Big Data analytics are transforming the manufacturing industry in a big way.

The manufacturing industry across the world is seeing major changes, driven by globalization and increasing consumer demand. As per a report by the World Economic Forum and Deloitte Touche Tohmatsu Ltd on the future of manufacturing, the ability to innovate at a quicker pace will be the major differentiating factor in the success of companies and countries.

This is substantiated by a PWC research which shows that across industries, the most innovative companies in the manufacturing sector grew 38% (2013 - 2016), about 11% year on year, while the least innovative manufacturers posted only a 10% growth over the same period.

Along with innovation in products, the transformation of manufacturing processes will also be essential for companies to remain competitive and maintain their profitability. This is where digital technologies can act as a potential game changer.

The digitalization of the manufacturing industry involves the integration of digital technologies in manufacturing processes across the value chain. Also referred to as Industry 4.0, digitalization is poised to reshape all aspects of the manufacturing industry and is being hailed as the next Industrial Revolution. Integral to Industry 4.0 is the ‘smart factory’, where devices are inter-connected, and processes are streamlined, thus ensuring greater productivity across the value chain, from design and development, to engineering and manufacturing and finally to service and logistics.

Internet of Things (IoT), robotics, artificial intelligence and Big Data analytics are some of the key technologies powering Industry 4.0. According to a report, Industry 4.0 will prompt manufacturers globally to invest $267 billion in technologies like IoT by 2020. Investments in digitalization can lead to excellent returns. Companies that have implemented digitalization solutions have almost halved their manufacturing cycle time through more efficient use of their production lines. With a single line now able to produce more than double the number of product variants as three lines in the conventional model, end to end digitalization has led to an almost 20% jump in productivity.

Digitalization and the Indian manufacturing industry

The Make in India program aims to increase the contribution of the manufacturing industry to the country’s GDP from 16% to 25% by 2022. India’s manufacturing sector could also potentially touch $1 trillion by 2025. However, to achieve these goals and for the industry to reach its potential, it must overcome the several internal and external obstacles that impede its growth. These include competition from other Asian countries, infrastructural deficiencies and lack of skilled manpower.

There is a common sentiment across big manufacturers that India lacks the eco-system for making sophisticated components. According to FICCI’s report on the readiness of Indian manufacturing to adopt advanced manufacturing trends, only 10% of companies have adopted new technologies for manufacturing, while 80% plan to adopt the same by 2020. This indicates a significant gap between the potential and the reality of India’s manufacturing industry.

The ‘Make in India’ vision of positioning India as a global manufacturing hub requires the industry to adopt innovative technologies. Digitalization can give the Indian industry an impetus to deliver products and services that match global standards, thereby getting access to global markets.

The policy, thus far, has received a favourable response as global tech giants have either set up or are in the process of setting up hi-tech manufacturing plants in India. Siemens, for instance, is helping companies in India gain a competitive advantage by integrating industry-specific software applications that optimise performance across the entire value chain.

The Digital Enterprise is Siemens’ solution portfolio for the digitalization of industries. It comprises of powerful software and future-proof automation solutions for industries and companies of all sizes. For the discrete industries, the Digital Enterprise Suite offers software and hardware solutions to seamlessly integrate and digitalize their entire value chain – including suppliers – from product design to service, all based on one data model. The result of this is a perfect digital copy of the value chain: the digital twin. This enables companies to perform simulation, testing, and optimization in a completely virtual environment.

The process industries benefit from Integrated Engineering to Integrated Operations by utilizing a continuous data model of the entire lifecycle of a plant that helps to increase flexibility and efficiency. Both offerings can be easily customized to meet the individual requirements of each sector and company, like specific simulation software for machines or entire plants.

Siemens has identified projects across industries and plans to upgrade these industries by connecting hardware, software and data. This seamless integration of state-of-the-art digital technologies to provide sustainable growth that benefits everyone is what Siemens calls ‘Ingenuity for Life’.

Case studies for technology-led changes

An example of the implementation of digitalization solutions from Siemens can be seen in the case of pharma major Cipla Ltd’s Kurkumbh factory.

Cipla needed a robust and flexible distributed control system to dispense and manage solvents for the manufacture of its APIs (active pharmaceutical ingredients used in many medicines). As part of the project, Siemens partnered with Cipla to install the DCS-SIMATIC PCS 7 control system and migrate from batch manufacturing to continuous manufacturing. By establishing the first ever flow Chemistry based API production system in India, Siemens has helped Cipla in significantly lowering floor space, time, wastage, energy and utility costs. This has also improved safety and product quality.

In yet another example, technology provided by Siemens helped a cement plant maximise its production capacity. Wonder Cement, a greenfield project set up by RK Marbles in Rajasthan, needed an automated system to improve productivity. Siemens’ solution called CEMAT used actual plant data to make precise predictions for quality parameters which were previously manually entered by operators. As a result, production efficiency was increased and operators were also freed up to work on other critical tasks. Additionally, emissions and energy consumption were lowered – a significant achievement for a typically energy intensive cement plant.

In the case of automobile major, Mahindra & Mahindra, Siemens’ involvement involved digitalizing the whole product development system. Siemens has partnered with the manufacturer to provide a holistic solution across the entire value chain, from design and planning to engineering and execution. This includes design and software solutions for Product Lifecycle Management, Siemens Technology for Powertrain (STP) and Integrated Automation. For Powertrain, the solutions include SINUMERIK, SINAMICS, SIMOTICS and SIMATIC controls and drives, besides CNC and PLC-controlled machines linked via the Profinet interface.

The above solutions helped the company puts its entire product lifecycle on a digital platform. This has led to multi-fold benefits – better time optimization, higher productivity, improved vehicle performance and quicker response to market requirements.

Siemens is using its global expertise to guide Indian industries through their digital transformation. With the right technologies in place, India can see a significant improvement in design and engineering, cutting product development time by as much as 30%. Besides, digital technologies driven by ‘Ingenuity for Life’ can help Indian manufacturers achieve energy efficiency and ensure variety and flexibility in their product offerings while maintaining quality.

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The above examples of successful implementation of digitalization are just some of the examples of ‘Ingenuity for Life’ in action. To learn more about Siemens’ push to digitalize India’s manufacturing sector, see here.

This article was produced on behalf of Siemens by the Scroll.in marketing team and not by the Scroll.in editorial staff.